[Financial Summary](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) The Group's revenue declined while its net loss narrowed in H1 2025 amid a challenging property market Financial Summary for H1 2025 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 288.1 | 429.7 | -33.0% | | Gross Contracted Sales | 302.2 | 276.1 | +9.5% | | Loss for the period | (215.8) | (507.7) | Loss narrowed | | Fair value loss on investment properties | (68.5) | (325.9) | Loss narrowed | | Total cash and bank deposits (at period end) | 117.0 | 135.6 (as of Dec 31, 2024) | -13.7% | | Total investment properties (at period end) | 1,295.1 | 3,726.5 (as of Dec 31, 2024) | -65.2% | - The Group's revenue for H1 2025 decreased by **33.0%** year-on-year to **RMB 288.1 million**, while the loss for the period narrowed to **RMB 215.8 million**, primarily due to the severe real estate market environment, a decline in sales of developed properties, and fair value losses on investment properties[2](index=2&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's loss for the period narrowed significantly due to reduced fair value losses and finance costs Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric (RMB thousand) | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 288,123 | 429,748 | | Cost of sales | (154,710) | (355,113) | | Gross profit | 133,413 | 74,635 | | Changes in fair value of investment properties | (68,506) | (325,866) | | Other income, expenses, gains and losses | 15,902 | (49,942) | | Selling and marketing expenses | (15,541) | (15,272) | | Administrative expenses | (61,206) | (72,055) | | Operating profit/(loss) | 4,062 | (388,500) | | Finance costs | (11,566) | (138,166) | | Share of (loss)/profit of associates | (705) | 747 | | Share of loss of joint ventures | (30,399) | (5,311) | | Loss before tax | (38,608) | (531,230) | | Income tax | (177,225) | 23,538 | | Loss for the period | (215,833) | (507,692) | | Loss attributable to equity holders of the Company | (215,772) | (560,500) | | Non-controlling interests | (61) | 52,808 | | Total comprehensive expense for the period | (214,123) | (506,751) | - The Group recorded a loss for the period of **RMB 215.8 million** in H1 2025, a significant reduction from the **RMB 507.7 million** loss in the same period last year, mainly benefiting from a notable decrease in fair value losses on investment properties and finance costs[3](index=3&type=chunk)[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%AE%80%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) The Group's financial position weakened, with total equity turning negative and net liabilities recorded Condensed Consolidated Statement of Financial Position (As of June 30) | Metric (RMB thousand) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 144,480 | 412,869 | | Investment properties | 1,295,140 | 3,726,537 | | Interests in associates | 53,730 | 54,435 | | Interests in joint ventures | 383,591 | 413,990 | | Other financial assets | 165,290 | 165,855 | | Restricted bank deposits | 9,363 | 9,355 | | Deferred tax assets | 15,609 | 77,790 | | **Total non-current assets** | **2,067,203** | **4,860,831** | | **Current assets** | | | | Properties under development for sale | 1,365,038 | 1,289,595 | | Completed properties for sale | 1,069,217 | 1,165,005 | | Contract costs | 846 | 836 | | Trade and other receivables | 620,220 | 595,582 | | Prepayments for land appreciation tax and income tax | 77,447 | 80,444 | | Restricted bank deposits | 20,776 | 28,413 | | Cash and cash equivalents | 86,825 | 97,876 | | **Total current assets** | **3,240,369** | **3,257,751** | | Assets held for sale | 2,616,703 | – | | **Total assets** | **5,857,072** | **8,118,582** | | **Current liabilities** | | | | Trade and other payables | 1,241,409 | 1,892,970 | | Contract liabilities | 210,481 | 184,584 | | Rental deposits received | 24,687 | 27,696 | | Lease liabilities | 34,965 | 42,866 | | Bank loans | 408,252 | 489,041 | | Current tax | 709,174 | 589,878 | | Senior notes | – | 3,354,557 | | Financial guarantee contracts | – | 306,983 | | **Total current liabilities** | **2,628,968** | **6,888,575** | | Liabilities directly associated with assets held for sale | 4,878,392 | – | | **Total current liabilities** | **7,507,360** | **6,888,575** | | **Net current liabilities** | **(1,650,288)** | **(3,630,824)** | | **Total assets less current liabilities** | **416,915** | **1,230,007** | | **Non-current liabilities** | | | | Lease liabilities | 68,398 | 83,242 | | Bank loans | 226,544 | 217,368 | | Deferred tax liabilities | 146,399 | 739,700 | | **Total non-current liabilities** | **441,341** | **1,040,310** | | **Net (liabilities)/assets** | **(24,426)** | **189,697** | | **Capital and reserves** | | | | Share capital | 112,883 | 112,883 | | Reserves | (420,341) | (206,279) | | Total deficit attributable to equity holders of the Company | (307,458) | (93,396) | | Non-controlling interests | 283,032 | 283,093 | | **Total (deficit)/equity** | **(24,426)** | **189,697** | - As of June 30, 2025, the Group's total assets less current liabilities were **RMB 416.9 million**, a significant decrease from the end of 2024; total equity turned negative, with net liabilities of **RMB 24.4 million**, reflecting sustained financial pressure[5](index=5&type=chunk)[6](index=6&type=chunk) [Notes](index=6&type=section&id=%E9%99%84%E6%B3%A8) This section details accounting policies, segment performance, and significant financial items [General Information and Basis of Preparation](index=6&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99%E5%8F%8A%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The Company, incorporated in the Cayman Islands, primarily engages in property development, leasing, and hotel operations - The Company was incorporated in the Cayman Islands on April 26, 2012, and its shares have been listed on the Hong Kong Stock Exchange since January 16, 2013[7](index=7&type=chunk) - The Group is principally engaged in property development, property leasing, and hotel operations[7](index=7&type=chunk) - The condensed consolidated interim financial statements are presented in RMB and prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting"[7](index=7&type=chunk)[8](index=8&type=chunk) [Material Uncertainties Related to Going Concern](index=6&type=section&id=(a)%20%E8%88%87%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E6%9C%89%E9%97%9C%E4%B9%8B%E9%87%8D%E5%A4%A7%E4%B8%8D%E6%98%8E%E6%9C%97%E5%9B%A0%E7%B4%A0) The Group faces significant going concern uncertainties due to net losses, net current liabilities, and debt defaults - The Group incurred a net loss of approximately **RMB 215.8 million**, had net current liabilities of approximately **RMB 1,650.3 million**, and net liabilities of approximately **RMB 24.4 million** during the period[10](index=10&type=chunk) - There were cross-defaulted bank loans of approximately **RMB 319.2 million** and events of default related to the failure to repay cumulative interest of **US$91.9 million** (approximately RMB 652.1 million) and outstanding principal of **US$466.7 million** (approximately RMB 3,340.7 million) on senior notes[11](index=11&type=chunk)[12](index=12&type=chunk) - Current real estate industry volatility may pose increasing difficulties for the Group and could impair its ability to generate sufficient cash flows from future operations to meet its financing obligations[13](index=13&type=chunk) [Consideration of Going Concern Assumption](index=7&type=section&id=(b)%20%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E5%81%87%E8%A8%AD%E7%9A%84%E8%80%83%E6%85%AE) The Board prepared the financial statements on a going concern basis despite material uncertainties - A debt restructuring plan has been approved by relevant debt holders and shareholders, involving the issuance of new notes to settle principal debt and the transfer of a 95% interest in Golden Wheel Diamond to the issuer[14](index=14&type=chunk) - The Company will issue new shares to scheme creditors to offset accrued interest, and with all scheme conditions fulfilled, the scheme became effective on June 24, 2025[16](index=16&type=chunk) - Management is negotiating with lenders and creditors to extend repayment dates and has formulated business strategies to generate cash flow from existing operations, including accelerating property sales and receivables collection while implementing stricter cost controls[19](index=19&type=chunk) [Changes in Accounting Policies](index=9&type=section&id=2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The Group's accounting policies remained consistent with those applied in the previous annual financial statements - The Group's accounting policies have not changed from those applied in the consolidated financial statements for the year ended December 31, 2024[20](index=20&type=chunk) [Revenue and Segment Reporting](index=9&type=section&id=3%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group's operations are divided into three reportable segments: property development, property leasing, and hotel operations - The Group has identified three operating and reportable segments: property development, property leasing, and hotel operations[21](index=21&type=chunk) [Disaggregation of Revenue](index=9&type=section&id=(a)%20%E6%94%B6%E7%9B%8A%E5%88%86%E6%8B%86) Total revenue for H1 2025 was RMB 288.1 million, primarily from property development Disaggregation of Revenue (For the six months ended June 30) | Business Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Property development | 176,903 | 293,467 | | Property leasing | 63,596 | 87,832 | | Hotel operations | 47,624 | 48,449 | | **Total revenue** | **288,123** | **429,748** | - Disaggregated by customer's geographical location, all revenue is derived from Mainland China[22](index=22&type=chunk) [Information about Profit or Loss, Assets and Liabilities](index=10&type=section&id=(b)%20%E6%9C%89%E9%97%9C%E6%90%8D%E7%9B%8A%E3%80%81%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5%E8%B3%87%E6%96%99) The property development segment turned profitable, contributing to a total reportable segment profit of RMB 63.1 million Reportable Segment Revenue and Profit/(Loss) (For the six months ended June 30) | Metric (RMB thousand) | Property Development (2025) | Property Development (2024) | Property Leasing (2025) | Property Leasing (2024) | Hotel Operations (2025) | Hotel Operations (2024) | Total (2025) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from contracts with customers (point in time) | 176,903 | 293,467 | – | – | – | – | 176,903 | 293,467 | | Rental income | – | – | 63,596 | 87,832 | 47,624 | 48,449 | 111,220 | 136,281 | | **Reportable segment revenue** | **176,903** | **293,467** | **63,596** | **87,832** | **47,624** | **48,449** | **288,123** | **429,748** | | **Reportable segment profit/(loss)** | **24,915** | **(39,701)** | **35,262** | **40,397** | **2,955** | **(93)** | **63,132** | **603** | [Reconciliation of Reportable Segment Profit or Loss](index=10&type=section&id=(c)%20%E5%8F%AF%E5%91%88%E5%A0%B1%E5%88%86%E9%83%A8%E6%90%8D%E7%9B%8A%E4%B9%8B%E5%B0%8D%E8%B3%AC) Reportable segment profit was reconciled to a consolidated loss before tax of RMB 38.6 million Reconciliation of Reportable Segment Profit or Loss (For the six months ended June 30) | Metric (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | Reportable segment profit | 63,132 | 603 | | Changes in fair value of investment properties | (68,506) | (325,866) | | Other income, expenses, gains and losses | 15,902 | (49,942) | | Unallocated head office and corporate expenses | (6,466) | (13,295) | | Finance costs | (11,566) | (138,166) | | Share of (loss)/profit of associates | (705) | 747 | | Share of loss of joint ventures | (30,399) | (5,311) | | **Consolidated loss before tax** | **(38,608)** | **(531,230)** | [Loss Before Tax](index=11&type=section&id=4%20%E9%99%A4%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D) The Group's pre-tax loss narrowed significantly, driven by lower finance costs and a turnaround in other income [Finance Costs](index=11&type=section&id=(a)%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs decreased substantially to RMB 11.6 million due to a significant reduction in senior note interest Breakdown of Finance Costs (For the six months ended June 30) | Finance Cost Item (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank loans | (23,662) | (33,500) | | Interest on lease liabilities | (3,660) | (3,994) | | Interest on senior notes | – | (161,804) | | Less: Interest expense capitalized to properties under development for sale and investment properties under development | 15,756 | 61,132 | | **Total interest expense** | **(11,566)** | **(138,166)** | [Other Income, Expenses, Gains and Losses](index=11&type=section&id=(b)%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E9%96%8B%E6%94%AF%E3%80%81%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) The Group recorded net other income of RMB 15.9 million, a significant improvement from a net loss previously Breakdown of Other Income, Expenses, Gains and Losses (For the six months ended June 30) | Item (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | Dividend and interest income | 26 | 1,100 | | Government grants | 30 | 67 | | Compensation income for early termination of leases | 1,607 | 8,687 | | Compensation income for termination of property sales contracts | 391 | 1,113 | | Net foreign exchange gain/(loss) | 3,271 | (32,398) | | Net change in fair value of other financial assets | 10,558 | (1,167) | | Loss on surrender of insurance for early redemption | (609) | – | | Gain on disposal of property, plant and equipment | 573 | 1,022 | | Change in financial guarantee contracts | – | (24,270) | | Impairment loss on amounts due from former subsidiaries | – | (5,083) | | Donations | (328) | (5) | | Others | 383 | 992 | | **Total** | **15,902** | **(49,942)** | [Other Items](index=11&type=section&id=(c)%20%E5%85%B6%E4%BB%96%E9%A0%85%E7%9B%AE) The cost of properties sold was RMB 145.9 million, with a reversal of impairment loss on completed properties Breakdown of Other Items (For the six months ended June 30) | Item (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | Cost of properties sold | 145,891 | 199,497 | | Impairment loss (reversal)/provision on completed properties for sale | (53,490) | 101,499 | | Direct operating expenses arising from properties that generated rental income | 11,556 | 11,777 | | Provision for impairment loss on right-of-use assets | 9,197 | – | | Depreciation of property, plant and equipment | 26,110 | 35,193 | [Income Tax](index=12&type=section&id=5%20%E6%89%80%E5%BE%97%E7%A8%85) The Group recorded an income tax expense of RMB 177.2 million, a reversal from an income tax credit last year Breakdown of Income Tax (For the six months ended June 30) | Income Tax Item (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | Current tax - China enterprise income tax | 17,308 | 31,010 | | Current tax - Land appreciation tax | 111,116 | 121,556 | | Deferred tax | 48,801 | (176,104) | | **Total** | **177,225** | **(23,538)** | - The increase in income tax expense was mainly due to the derecognition of deferred tax assets arising from differences in land appreciation tax[28](index=28&type=chunk)[68](index=68&type=chunk) [Loss Per Share](index=13&type=section&id=6%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) The Group's basic and diluted loss per share both narrowed significantly to RMB 1.20 [Basic Loss Per Share](index=13&type=section&id=(a)%20%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E8%99%A7%E6%90%8D) Basic loss per share was RMB 1.20, based on a loss attributable to equity holders of RMB 215.8 million Basic Loss Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to equity holders of the Company (RMB thousand) | 215,772 | 560,500 | | Weighted average number of ordinary shares in issue (shares) | 179,902,000 | 179,902,000 | | **Basic loss per share (RMB)** | **(1.20)** | **(3.12)** | - The weighted average number of ordinary shares in issue has been adjusted for the effect of the share consolidation as if it had occurred on January 1, 2024[30](index=30&type=chunk) [Diluted Loss Per Share](index=13&type=section&id=(b)%20%E6%AF%8F%E8%82%A1%E6%94%A4%E8%96%84%E8%99%A7%E6%90%8D) Diluted loss per share was the same as basic loss per share as there were no potential dilutive ordinary shares - The Group had no potential dilutive ordinary shares in issue during the six months ended June 30, 2025[31](index=31&type=chunk) - Therefore, the diluted loss per share for both periods was the same as the basic loss per share[31](index=31&type=chunk) [Investment Properties and Other Property, Plant and Equipment](index=13&type=section&id=7%20%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD%E5%8F%8A%E5%85%B6%E4%BB%96%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) This chapter discloses changes in assets, including impairment losses and transfers to assets held for sale [Right-of-use Assets](index=13&type=section&id=(a)%20%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) There were no significant changes to the Group's right-of-use assets in H1 2025 - There were no significant changes for the Group during the six months ended June 30, 2025[32](index=32&type=chunk) - For the six months ended June 30, 2024, the Group terminated lease agreements and derecognized right-of-use assets of **RMB 7,114,000** and lease liabilities of **RMB 11,172,000**, respectively[32](index=32&type=chunk) [Acquisition and Disposal of Owner-occupied Assets](index=13&type=section&id=(b)%20%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E8%87%AA%E7%94%A8%E8%B3%87%E7%94%A2) The Group acquired assets costing RMB 5.2 million and disposed of assets costing RMB 0.6 million Acquisition and Disposal of Owner-occupied Assets (For the six months ended June 30) | Item (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | Cost of acquisition of plant, property and equipment | 5,227 | 4,908 | | Cost of disposal of plant, property and equipment | 592 | 1,085 | | Cost of investment properties sold | 17,279 | 12,954 | [Impairment Loss](index=14&type=section&id=(c)%20%E6%B8%9B%E5%80%BC%E8%99%A7%E6%90%8D) An impairment loss of RMB 9.2 million was recognized for certain right-of-use assets - For the six months ended June 30, 2025, the Group wrote down the carrying amount of certain right-of-use assets to their recoverable amount of **RMB 7,700,000**[34](index=34&type=chunk) - An impairment loss of **RMB 9,197,000** was recognized in "cost of sales"[34](index=34&type=chunk) [Valuation](index=14&type=section&id=(d)%20%E4%BC%B0%E5%80%BC) A net loss of RMB 68.5 million was recognized due to fair value changes in investment properties - The valuation of investment properties was updated on June 30, 2025, by an independent and qualified professional valuer[35](index=35&type=chunk) - A net loss of **RMB 68,506,000** on changes in fair value of investment properties was recognized in profit or loss for the period (H1 2024: net loss of RMB 325,866,000)[35](index=35&type=chunk) - The unrealized revaluation loss was mainly due to the negative impact of the economic downturn on the market value of investment properties[63](index=63&type=chunk) [Transfer to Assets Held for Sale](index=14&type=section&id=(e)%20%E8%BD%89%E6%92%A5%E8%87%B3%E6%8C%81%E4%BD%9C%E5%87%BA%E5%94%AE%E8%B3%87%E7%94%A2) Assets with a carrying amount of approximately RMB 2.6 billion were transferred to assets held for sale - For the six months ended June 30, 2025, certain property, plant and equipment with a carrying amount of approximately **RMB 236,160,000** and investment properties with a carrying amount of approximately **RMB 2,371,000,000** were transferred to assets held for sale for the proposed restructuring[36](index=36&type=chunk) [Other Financial Assets](index=14&type=section&id=8%20%E5%85%B6%E4%BB%96%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) The Group's other financial assets primarily consist of unlisted equity securities in Xiamen International Bank Other Financial Assets (As of June 30) | Item (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss - unlisted equity securities | 165,290 | 154,732 | | Financial assets at fair value through profit or loss - others | – | 11,123 | | **Amount presented under non-current assets** | **165,290** | **165,855** | - The unlisted equity securities represent an equity interest in Xiamen International Bank and have been pledged to a bank as security for certain banking facilities granted to the Group[37](index=37&type=chunk) - During the six months ended June 30, 2025, the Company surrendered an insurance policy to obtain its cash value and received proceeds of approximately **RMB 10.5 million**, resulting in an other loss of **RMB 0.6 million**[37](index=37&type=chunk) [Trade and Other Receivables](index=15&type=section&id=9%20%E8%B2%A8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Total trade and other receivables amounted to RMB 620.2 million as of June 30, 2025 Aging Analysis of Trade and Other Receivables (As of June 30) | Item (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables within 1 year | 68,946 | 64,594 | | Amounts due from associates and joint ventures | 100,732 | 104,024 | | Other receivables | 290,436 | 279,968 | | Amounts due from former subsidiaries | 622,585 | 632,142 | | Less: Provision for credit losses | (650,299) | (659,856) | | Financial assets measured at amortized cost | 432,400 | 420,872 | | Advances to contractors | 48,905 | 34,825 | | Other prepaid taxes | 138,915 | 139,885 | | **Total** | **620,220** | **595,582** | [Disposal Group Held for Sale](index=15&type=section&id=10%20%E6%8C%81%E4%BD%9C%E5%87%BA%E5%94%AE%E7%9A%84%E5%87%BA%E5%94%AE%E7%B5%84%E5%88%A5) The Issuer Group was classified as a disposal group held for sale with net liabilities of RMB 2,261.7 million - The Issuer Group (comprising designated assets and hotel operations) was classified as a disposal group held for sale as of June 30, 2025, in connection with the debt restructuring plan[39](index=39&type=chunk) - All scheme conditions have been fulfilled, the scheme became effective on June 24, 2025, and the transfer is expected to be completed before the restructuring effective date[39](index=39&type=chunk) Assets and Liabilities of Disposal Group Held for Sale (As of June 30, 2025) | Item (RMB thousand) | Amount | | :--- | :--- | | **Assets:** | | | Property, plant and equipment | 236,160 | | Investment properties | 2,371,000 | | Trade and other receivables | 1,008 | | Cash and cash equivalents | 8,535 | | **Total assets held for sale** | **2,616,703** | | **Liabilities:** | | | Deferred tax liabilities | (579,921) | | Senior notes | (3,340,650) | | Interest payable on senior notes | (652,110) | | Financial guarantee contracts | (305,711) | | **Total liabilities directly associated with assets held for sale** | **(4,878,392)** | | **Net liabilities directly associated with assets held for sale** | **(2,261,689)** | [Trade and Other Payables](index=16&type=section&id=11%20%E8%B2%A8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Total trade and other payables decreased to RMB 1,241.4 million due to reclassification for restructuring Aging Analysis of Trade and Other Payables (As of June 30) | Item (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables within 180 days | 410,631 | 465,179 | | Trade payables from 181 to 365 days | 41,907 | 142,865 | | Trade payables over 1 year | 242,900 | 133,106 | | **Total trade payables** | **695,438** | **741,150** | | Other payables | 301,889 | 915,473 | | Amounts due to associates and joint ventures | 244,082 | 236,347 | | **Total** | **1,241,409** | **1,892,970** | - During the six months ended June 30, 2025, interest payable on senior notes with a carrying amount of approximately **RMB 652,110,000**, included in other payables, was transferred to liabilities directly associated with assets held for sale for the proposed restructuring[43](index=43&type=chunk) [Comparative Information](index=16&type=section&id=12%20%E6%AF%94%E8%BC%83%E8%B3%87%E6%96%99) Certain comparative figures have been reclassified to conform with the current period's presentation - Certain comparative figures have been reclassified to conform with the current period's presentation[44](index=44&type=chunk) [Business Review](index=17&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) The Group navigated a challenging real estate market through debt restructuring and strategic sales [Market Environment and Group Overview](index=17&type=section&id=%E5%B8%82%E5%A0%B4%E7%92%B0%E5%A2%83%E8%88%87%E9%9B%86%E5%9C%98%E6%A6%82%E6%B3%81) The Group faced a sluggish real estate market, mitigating financial pressure through asset sales and debt restructuring - China's real estate market has faced severe challenges since the pandemic, with factors such as weak demand, developer debt crises, and low homebuyer confidence leading to a market downturn[45](index=45&type=chunk) - The Group's operating conditions remained sluggish, and it has taken measures such as price reductions, asset sales, and debt restructuring to alleviate financial pressure[46](index=46&type=chunk) - As of June 30, 2025, the Group achieved contracted sales of **RMB 302.2 million** (H1 2024: RMB 276.1 million), a year-on-year increase of **9.5%**[46](index=46&type=chunk) - Property leasing revenue decreased by approximately **27.6%** to about **RMB 63.6 million**, while the hotel operations business remained stable with average occupancy rates of **82%** and **76%** respectively[46](index=46&type=chunk) [Debt Restructuring Progress](index=17&type=section&id=%E5%82%B5%E5%8B%99%E9%87%8D%E7%B5%84%E9%80%B2%E5%B1%95) The Group's debt restructuring plan was approved by creditors and the court, with implementation expected in H2 2025 - The debt restructuring plan was approved by a majority of scheme creditors and sanctioned by the court at a hearing on June 24, 2025[47](index=47&type=chunk) - The Group will focus on completing the implementation and execution of the restructuring plan in the second half of 2025 to ensure its completion within a reasonably practicable timeframe[47](index=47&type=chunk) - Upon completion of the restructuring, the Group's gearing ratio will be substantially reduced, its financial position will be greatly improved, and its business operations can gradually regain vitality[47](index=47&type=chunk) [Property Development](index=17&type=section&id=%E7%89%A9%E6%A5%AD%E9%96%8B%E7%99%BC) The Group's gross contracted sales increased by 9.5% year-on-year, while no new land was acquired [Contracted Sales](index=17&type=section&id=%E5%90%88%E7%B4%84%E9%8A%B7%E5%94%AE) Gross contracted sales reached approximately RMB 302.2 million, a 9.5% increase year-on-year Contracted Sales Data (For the six months ended June 30) | Metric | 2025 | 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Gross Contracted Sales (RMB million) | 302.2 | 276.1 | +9.5% | | Contracted Sales GFA (sq.m.) | 28,283 | 19,286 | +46.7% | [Property Sales](index=18&type=section&id=%E7%89%A9%E6%A5%AD%E9%8A%B7%E5%94%AE) Revenue from property sales reached RMB 176.9 million, with an average selling price of RMB 12,607 per sq.m - For the six months ended June 30, 2025, the Group's revenue from property sales amounted to approximately **RMB 176.9 million**[49](index=49&type=chunk) - A total gross floor area of approximately **14,032 sq.m.** was sold and delivered, with an average selling price of about **RMB 12,607** per sq.m[49](index=49&type=chunk) - As of June 30, 2025, the unrecognized gross contracted sales amounted to approximately **RMB 282.7 million**, which is expected to be recognized upon completion and delivery of the relevant projects in the second half of 2025[49](index=49&type=chunk) [Land Bank](index=18&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E5%9C%9F%E5%9C%B0%E5%84%B2%E5%82%99) The Group's total land bank GFA was 680,892 sq.m., with no new acquisitions during the period - For the six months ended June 30, 2025, the Group did not acquire any new land, nor did it invest in any new joint ventures or associates[50](index=50&type=chunk) - As of June 30, 2025, the gross floor area of the Group's total land bank was **680,892 sq.m.**[50](index=50&type=chunk) [Property Leasing](index=18&type=section&id=%E7%89%A9%E6%A5%AD%E7%A7%9F%E8%B3%83) The Group's completed investment properties maintained an overall occupancy rate of over 82% - As of June 30, 2025, the Group had completed investment properties with a total gross floor area of approximately **56,876 sq.m.**[51](index=51&type=chunk) - For the six months ended June 30, 2025, the overall occupancy rate of the Group's investment properties exceeded **82%**[51](index=51&type=chunk) [Metro Leasing and Operational Management Business](index=18&type=section&id=%E5%9C%B0%E9%90%B5%E7%A7%9F%E8%B3%83%E5%8F%8A%E7%87%9F%E9%81%8B%E7%AE%A1%E7%90%86%E6%A5%AD%E5%8B%99) The Group manages three metro station shopping centers with a total leasable GFA of 11,013 sq.m - As of June 30, 2025, the Group held leasing and operational management contracts for 3 metro station shopping centers in two cities in Mainland China (Nanjing and Wuxi)[52](index=52&type=chunk) - The total leasable gross floor area is approximately **11,013 sq.m.**, with an overall occupancy rate exceeding **82%**[52](index=52&type=chunk) [Hotel Operations](index=18&type=section&id=%E9%85%92%E5%BA%97%E7%87%9F%E9%81%8B) The Group operates five hotels with a total of 772 rooms, achieving an average occupancy rate of 76% - As of June 30, 2025, the Group had five operating hotels with a total of **772** guest rooms[53](index=53&type=chunk) - For the six months ended June 30, 2025, the average room occupancy rate of the five hotels during the reporting period was approximately **76%**[53](index=53&type=chunk) [Other Investments](index=19&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%95%E8%B3%87) The Group's primary investment is a 61.5 million share stake in Xiamen International Bank - As of June 30, 2025, the Group's primary investment was its equity investment in Xiamen International Bank Co., Ltd[54](index=54&type=chunk) - The Group holds **61.5 million** unlisted equity shares of Xiamen International Bank Co., Ltd, with a carrying amount of approximately **RMB 165.3 million**[54](index=54&type=chunk) [Outlook](index=19&type=section&id=%E5%B1%95%20%E6%9C%9B) The Group is confident in long-term market recovery and will focus on project delivery and restructuring in H2 2025 - While a full recovery of the real estate market may take time, the Group is confident in its long-term development, believing that the central government's support policies will gradually take effect[55](index=55&type=chunk) - The Group will make every effort to complete its delivery schedule and restructuring plan for the second half of 2025, and will continue to actively explore opportunities for new projects and businesses[55](index=55&type=chunk) [Financial Review](index=19&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%BE) This section analyzes the Group's operating results, liquidity, and capital resources for the period [Operating Performance](index=19&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) The Group's revenue declined, but gross profit grew significantly, and key expenses were effectively controlled [Revenue](index=19&type=section&id=%E6%94%B6%20%E7%9B%8A) Total revenue decreased by 33.0% to RMB 288.1 million, driven by lower property development and leasing income Revenue Composition (For the six months ended June 30) | Business Category | 2025 (RMB thousand) | % of Total | 2024 (RMB thousand) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Property development | 176,903 | 61.4 | 293,467 | 68.3 | | Property leasing | 63,596 | 22.1 | 87,832 | 20.4 | | Hotel operations | 47,624 | 16.5 | 48,449 | 11.3 | | **Total** | **288,123** | **100.0** | **429,748** | **100.0** | - Revenue decreased by approximately **33.0%** from approximately **RMB 429.7 million** for the six months ended June 30, 2024 to approximately **RMB 288.1 million** for the six months ended June 30, 2025, mainly due to a decrease in revenue generated from property development and property leasing[57](index=57&type=chunk) [Property Development Revenue](index=20&type=section&id=%E7%89%A9%E6%A5%AD%E9%96%8B%E7%99%BC_%E6%94%B6%E7%9B%8A) Property development revenue decreased by 39.7% due to a reduction in gross floor area sold - Revenue from the property development business decreased by approximately **39.7%** from approximately **RMB 293.5 million** for the six months ended June 30, 2024 to approximately **RMB 176.9 million** for the six months ended June 30, 2025[58](index=58&type=chunk) - The decrease was mainly due to the reduction in the gross floor area sold and the absence of any project completions and handovers during the period[58](index=58&type=chunk) [Property Leasing Revenue](index=20&type=section&id=%E7%89%A9%E6%A5%AD%E7%A7%9F%E8%B3%83_%E6%94%B6%E7%9B%8A) Property leasing revenue decreased by 27.6% to RMB 63.6 million - For the six months ended June 30, 2025, revenue from property leasing decreased by approximately **27.6%** to about **RMB 63.6 million**[59](index=59&type=chunk) [Hotel Operations Revenue](index=20&type=section&id=%E9%85%92%E5%BA%97%E7%87%9F%E9%81%8B_%E6%94%B6%E7%9B%8A) Hotel operations revenue remained stable, declining slightly by 1.7% - The hotel operations business remained stable; for the six months ended June 30, 2025, revenue from hotel operations decreased by approximately **1.7%** to about **RMB 47.6 million**[60](index=60&type=chunk) [Cost of Sales](index=21&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased significantly by 56.4%, in line with the decline in property development revenue Breakdown of Cost of Sales (For the six months ended June 30) | Item (RMB thousand) | 2025 | % of Total | 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | **Property development** | | | | | | －Land acquisition cost | 59,367 | 38.4 | 69,730 | 19.6 | | －Construction cost | 63,597 | 41.1 | 75,839 | 21.4 | | －Capitalized finance costs | 22,591 | 14.6 | 53,096 | 15.0 | | －Tax expenses | 336 | 0.2 | 832 | 0.2 | | Impairment of inventories | (53,490) | (34.6) | 101,499 | 28.6 | | **Subtotal** | **92,401** | **59.7** | **300,996** | **84.8** | | Property leasing | 20,753 | 13.4 | 11,777 | 3.3 | | Hotel operations | 41,556 | 26.9 | 42,340 | 11.9 | | **Total** | **154,710** | **100.0** | **355,113** | **100.0** | - Cost of sales decreased by approximately **56.4%** from approximately **RMB 355.1 million** for the six months ended June 30, 2024 to approximately **RMB 154.7 million** for the six months ended June 30, 2025, which was mainly due to the decrease in cost of sales for property development, consistent with the decrease in revenue from sales of developed properties[61](index=61&type=chunk) [Gross Profit/(Loss) and Gross Profit/(Loss) Margin](index=21&type=section&id=%E6%AF%9B%20%E5%88%A9%EF%B9%95%EF%BC%88%E6%90%8D%EF%BC%89%E5%8F%8A%E6%AF%9B%20%E5%88%A9%EF%B9%95%EF%BC%88%E6%90%8D%EF%BC%89%E7%8E%87) The Group's gross profit increased significantly, driven by improved margins in property development - The Group recorded a gross profit of approximately **RMB 133.4 million** for the six months ended June 30, 2025 (H1 2024: gross profit of approximately RMB 74.6 million)[62](index=62&type=chunk) - The increase in gross profit was mainly due to the improvement in the gross profit of the Group's sales of developed properties, which contributed a **47.8%** gross profit margin for the six months ended June 30, 2025, compared to a gross loss margin of 2.6% in the same period last year[62](index=62&type=chunk) - The gross profit margin for property leasing decreased from approximately **86.6%** for the six months ended June 30, 2024 to approximately **67.4%** for the six months ended June 30, 2025; the gross profit margin for hotel operations remained stable at approximately **12.7%**[62](index=62&type=chunk) [Changes in Fair Value of Investment Properties](index=22&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD%E5%85%AC%E5%B9%B3%E5%80%BC%E8%AE%8A%E5%8B%95) The fair value loss on investment properties narrowed to RMB 68.5 million but was still impacted by the economic downturn - For the six months ended June 30, 2025, the Group recorded a fair value loss on investment properties of approximately **RMB 68.5 million** (H1 2024: fair value loss of approximately RMB 325.9 million)[63](index=63&type=chunk) - The unrealized revaluation loss was mainly due to the negative impact of the economic downturn on the market value of investment properties[63](index=63&type=chunk) [Other Income, Expenses, Gains and Losses](index=22&type=section&id=%E5%85%B6%20%E4%BB%96%20%E6%94%B6%20%E5%85%A5%E3%80%81%E9%96%8B%20%E6%94%AF%E3%80%81%E6%94%B6%20%E7%9B%8A%20%E5%8F%8A%20%E8%99%A7%20%E6%90%8D) The Group recorded net other income of RMB 15.9 million, a significant turnaround from a net loss last year - The Group recorded a net gain on other income, expenses, gains and losses of approximately **RMB 15.9 million** for the six months ended June 30, 2025 (H1 2024: net loss of RMB 49.9 million)[64](index=64&type=chunk) - The net gain for the six months ended June 30, 2025 mainly comprised a net foreign exchange gain of **RMB 3.3 million** and a net change in fair value of other financial assets of **RMB 10.6 million**[64](index=64&type=chunk) [Selling and Marketing Expenses](index=22&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and marketing expenses increased slightly to RMB 15.5 million - Selling and marketing expenses increased slightly from approximately **RMB 15.3 million** for the six months ended June 30, 2024 to approximately **RMB 15.5 million** for the six months ended June 30, 2025[65](index=65&type=chunk) [Administrative Expenses](index=22&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses decreased by 15.1% to RMB 61.2 million due to strict cost control policies - Administrative expenses decreased from approximately **RMB 72.1 million** for the six months ended June 30, 2024 to approximately **RMB 61.2 million** for the six months ended June 30, 2025, a decrease of approximately **15.1%** year-on-year[66](index=66&type=chunk) - The Group continued to maintain a strict cost control policy, including controlling headcount, implementing salary reductions for all staff, and reducing year-end bonuses[66](index=66&type=chunk) [Finance Costs](index=23&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs decreased significantly to RMB 11.6 million due to reduced interest on senior notes from debt restructuring - Finance costs decreased from approximately **RMB 138.2 million** for the six months ended June 30, 2024 to approximately **RMB 11.6 million** for the six months ended June 30, 2025, mainly due to the reduction in interest on senior notes as a result of the debt restructuring[67](index=67&type=chunk) [Income Tax](index=23&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) The Group recorded an income tax expense of RMB 177.2 million, a reversal from a tax credit in the prior period - The Group's income tax expense for the six months ended June 30, 2025 was approximately **RMB 177.2 million**, whereas the income tax credit for the six months ended June 30, 2024 was **RMB 23.5 million**[68](index=68&type=chunk) - The increase in income tax expense was mainly due to the derecognition of deferred tax assets arising from differences in land appreciation tax[68](index=68&type=chunk) [Loss for the Period](index=23&type=section&id=%E6%9C%9F%E9%96%93%E8%99%A7%E6%90%8D) The Group's net loss narrowed to RMB 215.8 million, primarily impacted by fair value losses on investment properties - The Group incurred a net loss of approximately **RMB 215.8 million** for the six months ended June 30, 2025 (H1 2024: net loss of approximately RMB 507.7 million)[69](index=69&type=chunk) - This was mainly due to the challenging business environment in the real estate industry, which resulted in a fair value loss on investment properties of approximately **RMB 68.5 million**[69](index=69&type=chunk) [Liquidity, Financial, and Capital Resources](index=23&type=section&id=%E6%B5%81%20%E5%8B%95%20%E8%B3%87%20%E9%87%91%E3%80%81%E8%B2%A1%20%E5%8B%99%20%E5%8F%8A%20%E8%B3%87%20%E6%9C%AC%20%E8%B3%87%20%E6%BA%90) The Group faced liquidity challenges with reduced cash balances and significant debt defaults, though debt restructuring is underway [Cash Position](index=23&type=section&id=%E7%8F%BE%E9%87%91%E7%8B%80%E6%B3%81) The Group's cash and bank balances decreased to RMB 117.0 million due to reduced proceeds from property sales Cash and Bank Balances (As of June 30) | Item (RMB million) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and bank balances | 117.0 | 135.6 | | Restricted bank deposits | 30.1 | 37.8 | - The decrease in cash and bank balances was mainly due to the reduction in proceeds from property sales resulting from a significant decrease in contracted sales during the six months ended June 30, 2025[70](index=70&type=chunk) [Breach of Loan Covenants and Cross-defaults under Certain Loan Facilities](index=23&type=section&id=%E9%81%95%E5%8F%8D%E8%B2%B8%E6%AC%BE%E5%8D%94%E8%AD%B0%E5%8F%8A%E8%8B%A5%E5%B9%B2%E8%B2%B8%E6%AC%BE%E8%9E%8D%E8%B3%87%E9%A0%85%E4%B8%8B%E5%87%BA%E7%8F%BE%E4%BA%A4%E5%8F%89%E9%81%95%E7%B4%84) The Group experienced cross-defaults on bank loans and default events on senior notes, which are subject to restructuring - As of June 30, 2025, bank loans under current liabilities included cross-defaulted bank loans with a total carrying amount of approximately **RMB 319,214,000**[71](index=71&type=chunk) - The failure to repay cumulative interest of **US$91,907,000** (approximately RMB 652,110,000) and redeem the outstanding principal amount of senior notes totaling approximately **US$466,663,000** (approximately RMB 3,340,650,000) upon maturity resulted in events of default[72](index=72&type=chunk) - These senior notes, along with financial guarantee contracts related to other defaulted bank loans of approximately **RMB 4,306,612,000**, are subject to a mutually agreed debt restructuring of the Group[72](index=72&type=chunk) [Cost of Borrowing](index=24&type=section&id=%E5%80%9F%E6%AC%BE%E6%88%90%E6%9C%AC) The Group's average cost of borrowing decreased to 7.5% in H1 2025 Average Cost of Borrowing (For the six months ended June 30) | Period | Average Cost of Borrowing | | :--- | :--- | | H1 2025 | 7.5% | | H1 2024 | 9.3% | [Gearing Ratio](index=24&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The net gearing ratio was not applicable due to negative total equity, while the liability-to-asset ratio increased - As of June 30, 2025, the Group's net gearing ratio was not applicable as total equity was negative (December 31, 2024: 2,069.3%)[74](index=74&type=chunk) - The Group's liability-to-asset ratio (total debt less contract liabilities divided by total assets) was approximately **97.7%** as of June 30, 2025, compared to approximately 95.4% as of December 31, 2024[74](index=74&type=chunk) [Foreign Exchange Rate Risk](index=24&type=section&id=%E5%A4%96%E5%8C%AF%E5%8C%AF%E7%8E%87%E9%A2%A8%E9%9A%AA) The Group faces foreign exchange risk from its HKD and USD-denominated borrowings and deposits - The Group primarily operates its business in China, and most of the Group's bank deposits and bank and other borrowings are denominated in RMB[75](index=75&type=chunk) - Certain bank deposits, bank borrowings, and senior notes are denominated in Hong Kong dollars or US dollars, and fluctuations in foreign exchange rates have affected and will continue to affect the Group's business, financial condition, and results of operations[75](index=75&type=chunk) - The Group currently does not have any foreign currency hedging policy, but management closely monitors foreign exchange risk and will consider hedging significant foreign currency exposure when necessary[75](index=75&type=chunk) [Contingent Liabilities](index=24&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group provides guarantees for customer mortgage loans, with minimal fair value impact due to low default rates - The Group generally provides guarantees to banks in respect of mortgage loans granted to its customers to finance their purchases of the Group's properties[76](index=76&type=chunk) - As of June 30, 2025, the Group's mortgage loan guarantees to banks for its customers amounted to approximately **RMB 19.2 million** (December 31, 2024: RMB 19.2 million)[77](index=77&type=chunk) - The Directors consider that the fair value of the guarantees at initial recognition is not significant due to the low default rate[77](index=77&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) The Group's remuneration policy is performance-based and aligned with industry practices - As of June 30, 2025, the Group employed a total of approximately **506** (December 31, 2024: 578) full-time employees in Hong Kong and Mainland China[78](index=78&type=chunk) - The remuneration of the Group's employees includes basic salary, allowances, pensions, performance bonuses, and share options[78](index=78&type=chunk) - Remuneration is determined with reference to employee performance, skills, qualifications, and experience, as well as prevailing industry practices[78](index=78&type=chunk) [Sufficient Public Float](index=25&type=section&id=%E5%85%85%E8%B6%B3%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) The Company has maintained the required public float as stipulated by the Stock Exchange Listing Rules - During the review period, the Company has maintained the public float as required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[79](index=79&type=chunk) [Corporate Governance Practices](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Board is committed to maintaining high standards of corporate governance in compliance with the Corporate Governance Code - The Board and management of the Company are committed to maintaining high standards of corporate governance and have complied with the code provisions and most of the recommended best practices set out in the Corporate Governance Code contained in Appendix C1 to the Listing Rules[80](index=80&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee oversees financial reporting, risk management, and internal controls - The Audit Committee currently comprises three independent non-executive Directors: Mr Li Sze Kuen (Chairman), Mr Chan Chi Wai and Ms Wong Lai Ling[81](index=81&type=chunk) - The primary duties of the Audit Committee include reviewing and supervising the Company's financial reporting process, half-year and annual results, risk management and internal control systems, the effectiveness of the internal audit function performed by the Group's internal audit department, and the implementation of anti-corruption and whistleblowing policies[82](index=82&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[82](index=82&type=chunk) [Remuneration Committee](index=26&type=section&id=%E8%96%AA%E9%85%AC%E5%A7%94%E5%93%A1%E6%9C%83) The Remuneration Committee advises on the remuneration policies for directors and senior management - The Remuneration Committee currently comprises two independent non-executive Directors and one executive Director, namely Mr Chan Chi Wai (Chairman), an independent non-executive Director, Mr Wong Kam Fai, an executive Director, and Ms Wong Lai Ling, an independent non-executive Director[83](index=83&type=chunk) - The primary duties of the Remuneration Committee include making recommendations on the remuneration policy and structure for all Directors and senior management of the Company; assessing the performance of each executive Director; making recommendations to the Board on the specific remuneration package for each executive Director and senior management; and reviewing and approving matters related to share schemes[84](index=84&type=chunk) [Nomination Committee](index=26&type=section&id=%E6%8F%90%E5%90%8D%E5%A7%94%E5%93%A1%E6%9C%83) The Nomination Committee is responsible for reviewing the Board's structure and making recommendations on director appointments - The Nomination Committee currently comprises two independent non-executive Directors and one executive Director, namely Mr Wong Yam Yin (Chairman), an executive Director, Mr Li Sze Kuen, an independent non-executive Director, and Ms Wong Lai Ling, an independent non-executive Director[85](index=85&type=chunk) - The primary duties of the Nomination Committee include regularly reviewing the structure, size and composition of the Board; identifying and selecting candidates for directorship; assessing the independence of independent non-executive Directors; and making recommendations to the Board on the appointment or re-appointment of Directors and succession planning for Directors[86](index=86&type=chunk) [Model Code for Securities Transactions by Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E準%E5%AE%88%E5%89%87) The Company has adopted the Model Code, and all directors have confirmed compliance during the review period - The Company has adopted the Model Code set out in Appendix C3 to the Listing Rules as the code of conduct for securities transactions by Directors[87](index=87&type=chunk) - The Company has made specific enquiries of all Directors, and all Directors have confirmed that they have complied with the required standards set out in the Model Code during the review period[87](index=87&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=%E8%B3%BC%20%E8%B2%B7%E3%80%81%E5%87%BA%20%E5%94%AE%20%E6%88%96%20%E8%B4%96%20%E5%9B%9E%20%E6%9C%AC%20%E5%85%AC%20%E5%8F%B8%20%E4%B8%8A%20%E5%B8%82%20%E8%AD%89%20%E5%88%B8) No purchase, sale, or redemption of the Company's listed securities was made by the Group during the period - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities[88](index=88&type=chunk) [Interim Dividend](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[89](index=89&type=chunk) [Share Consolidation](index=27&type=section&id=%E8%82%A1%E4%BB%BD%E5%90%88%E4%BD%B5) The Company implemented a share consolidation, converting every ten ordinary shares into one consolidated share - The Board proposed on May 20, 2025 to implement a share consolidation, whereby every ten (10) ordinary shares of US$0.01 each in the share capital of the Company would be consolidated into one (1) consolidated share of US$0.1 each[90](index=90&type=chunk) - The share consolidation was approved by the shareholders on May 16, 2025 and became effective on May 20, 2025[90](index=90&type=chunk) - Accordingly, the total number of issued ordinary shares of the Company was consolidated from **1,799,020,000** shares to **179,902,000** shares on May 20, 2025[90](index=90&type=chunk) [Issue of New Shares under Specific Mandate](index=28&type=section&id=%E6%A0%B9%E6%93%9A%E7%89%B9%E5%88%A5%E6%8E%88%E6%AC%8A%E7%99%BC%E8%A1%8C%E6%96%B0%E8%82%A1%E4%BB%BD) The Company will issue 30,519,600 new shares to scheme creditors to settle accrued interest upon restructuring - Upon the occurrence of the restructuring effective date, the Company will issue **30,519,600** new shares of the Company to the scheme creditors[91](index=91&type=chunk) - The allocation of the new shares is based on the accrued interest on the existing debt instruments held by the scheme creditors and is intended to offset all accrued interest[91](index=91&type=chunk) - The Company will not receive any proceeds from the issue of the new shares[91](index=91&type=chunk) [Subsequent Events after the Reporting Period](index=28&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%85%B6%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant subsequent events affecting the Group occurred after the reporting period - After the six months ended June 30, 2025 and up to the date of this announcement, no significant subsequent events have occurred that may affect the Group[93](index=93&type=chunk) [Publication of Interim Results and Interim Report](index=28&type=section&id=%E7%99%BB%E8%BC%89%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim results and report are available on the websites of the Stock Exchange and the Company - This interim results announcement is published on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company's website (www.gwtd.com.hk)[94](index=94&type=chunk) - The interim report of the Group for the six months ended June 30, 2025 containing all the information required by the Listing Rules will be despatched to the shareholders of the Company and published on the above websites in due course[94](index=94&type=chunk) [Board of Directors](index=28&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) This section lists the members of the Company's Board of Directors as of the announcement date - As at the date of this announcement, the Board of Directors of the Company comprises Mr Wong Yam Yin, Mr Wong Kam Fai, Mr Wong Kam Keung and Mr Tjie Tjin Fung as executive Directors; Mr Suwita Janata and Mr Gunawan Kiky as non-executive Directors; and Mr Chan Chi Wai, Mr Li Sze Kuen and Ms Wong Lai Ling as independent non-executive Directors[95](index=95&type=chunk)

Financial Performance - For the first half of 2025, the group reported revenue of $23.776 million, a decrease of 26.0% compared to $32.101 million in the first half of 2024[5]. - The gross profit for the first half of 2025 was $2.483 million, a significant turnaround from a gross loss of $8.114 million in the same period of 2024, resulting in a gross margin of 10.4%[5][6]. - Adjusted net loss narrowed from approximately $14.956 million in the first half of 2024 to about $4.938 million in the first half of 2025[7]. - Adjusted EBITDA improved from a loss of $13.042 million in the first half of 2024 to a slight profit of $92,000 in the first half of 2025[9]. - Sales volume declined from 9,682 tons in the first half of 2024 to 8,062 tons in the first half of 2025, but the group increased its sales ratio in North America from approximately 19.7% to 26.7% and in China from approximately 29.3% to 43.5%[12]. - Sales in China and the Americas increased by approximately 28.5% and 4.0% respectively, while overall revenue decreased from approximately $32.1 million in the first half of 2024 to about $23.8 million in the first half of 2025[13]. - The company reported a loss attributable to shareholders of $9.7 million for the six months ended June 30, 2025, compared to a loss of $14.4 million in the same period of 2024[32]. - The group reported a loss attributable to owners of the company of $9,664,000 for the six months ended June 30, 2025, compared to a loss of $14,368,000 for the same period in 2024[56]. Cost Management - The average selling cost per ton decreased by 36.4% compared to the same period last year, contributing to the improved profitability[6]. - Cost of sales decreased from approximately $40.2 million in the first half of 2024 to about $21.3 million in the first half of 2025, driven by a reduction in average sales cost from approximately $4,154 per ton to about $2,641 per ton[14]. - Administrative expenses significantly decreased by approximately 37.4%, from about $5.8 million in the first half of 2024 to approximately $3.6 million in the first half of 2025[16]. - Total financial costs reduced from approximately $1.7 million in the first half of 2024 to about $1.3 million in the first half of 2025, primarily due to the repayment of certain bank and other borrowings[17]. - The total employee benefits expense for the six months ended June 30, 2025, was $2,163,000, down from $3,079,000 in 2024, reflecting a decrease of approximately 30%[50]. Strategic Focus - The group continues to focus on cost-effective production in China and Italy, optimizing sales to higher-priced regions while avoiding loss-making orders[8]. - The organization remains optimistic about future business opportunities, particularly in light of ongoing global carbon neutrality trends and expected annual demand growth of 0.7% until 2030[11]. - The group plans to maintain strict cost control measures and continue its regional optimization strategy to enhance shareholder value and ensure sustainable long-term growth[11]. Assets and Liabilities - Cash and cash equivalents as of June 30, 2025, were approximately $8.5 million, down from $9.9 million as of December 31, 2024[22]. - The debt-to-equity ratio improved from 28.1% as of December 31, 2024, to approximately 26.5% as of June 30, 2025, due to the repayment of certain borrowings[24]. - Total equity and liabilities as of June 30, 2025, were approximately $104.4 million and $72.5 million respectively, compared to $105.8 million and $68.2 million as of December 31, 2024[23]. - The group's current assets were $65.3 million, slightly down from $66.5 million at the end of 2024[34]. - Trade receivables as of June 30, 2025, amounted to $9,330,000, down from $10,227,000 as of December 31, 2024[59]. - Trade payables increased to $7,701,000 in June 2025 from $6,391,000 in December 2024, representing a growth of 20.5%[61]. Capital Expenditures and Investments - Capital expenditures for the first half of 2025 amounted to approximately $2.3 million[26]. - The acquisition of Tai Gu assets was completed in August 2023 for approximately RMB 80.5 million, with RMB 40 million already paid[29]. - The company has allocated HKD 15.0 million for the development and expansion of its graphite anode materials business, with HKD 10.5 million expected to be utilized by mid-2026[68]. Shareholder Actions - The company issued 50,000,000 shares at a subscription price of HK$0.325, raising approximately $2,044,000 net of transaction costs[63]. - An additional 80,000,000 shares were issued at HK$0.39, generating about $3,941,000 net of transaction costs[64]. - The company proposed a rights issue to raise up to approximately $5,809,000 by issuing up to 570,000,000 shares at a subscription price of HK$0.08[65]. - The total net proceeds from the rights issue, after expenses, are expected to be around HK$43,900,000[66]. Compliance and Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial results for the first half of 2025[73]. - The company has complied with the corporate governance code throughout the reporting period[71]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance during the reporting period[72].

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。 Fengyinhe Holdings Limited 豐 銀 禾 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （ 前 稱 Flying Financial Service Holdings Limited 匯 聯 金 融服 務 控 股 有 限 公 司 ） （股份代號： 8030） 截至二零二五年六月三十日止六個月之 中期業績公佈 豐 銀 禾 控 股 有 限 公 司（「本公司」）董 事 會（「董事會」）謹 此 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 中 期 業 績。 本 公 告 列 載 本 公 司 二 零 二 五 年 中 期 報 告 之 全 文，並 符 合 香 港 聯 合 交 易 所 有 限 公 司GE ...

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 Ludao Technology Company Limited 中 國 綠 島 科 技 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：2023） 截至二零二五年六月三十日止六個月 中期業績 中期業績 中國綠島科技有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司 及其附屬公司（統稱「本集團」）截至二零二五年六月三十日止六個月（「報告期間」） 的未經審核中期業績，連同截至二零二四年六月三十日止六個月的未經審核比較 數字。該等未經審核中期業績已經由本公司審核委員會（「審核委員會」）審閱，並 由董事會於二零二五年八月二十九日批准。 1 中期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 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四 ...

[Overview](index=2&type=section&id=Overview) Sunshine Oil Sands Ltd. is an Athabasca oil sands resource holder and developer with approximately 710 million barrels of best estimate contingent resources, having invested about CAD 1.29 billion in leases and development - The company is an Athabasca oil sands resource developer, holding approximately **710 million barrels** of best estimate contingent resources[3](index=3&type=chunk) - As of December 31, 2024, unrisked best estimate contingent resources were approximately **1.01 billion barrels**[3](index=3&type=chunk) - The company has invested approximately **CAD 1.29 billion** in oil sands leases, drilling operations, and project engineering[4](index=4&type=chunk) - The company's ability to continue as a going concern faces significant doubt, dependent on West Ells' ongoing operations, favorable sales prices, profitability, and refinancing capabilities[4](index=4&type=chunk) [Latest Operating Performance](index=2&type=section&id=Latest%20Operating%20Performance) The West Ells project, which began commercial production in 2017 and fully resumed in April 2024, was shut down for equipment maintenance in Q2 and H1 2025, resulting in zero bitumen production and sales - The West Ells project commenced commercial production on March 1, 2017, and fully resumed on April 11, 2024[5](index=5&type=chunk) - In Q2 and H1 2025, the West Ells project was shut down for equipment maintenance, resulting in **zero barrels/day** average bitumen production and sales[5](index=5&type=chunk) - The Thickwood and Legend projects are planned for initial production of **10,000 barrels/day**, with Thickwood approved in Q3 2013[6](index=6&type=chunk) - Muskwa is not yet in production, and the Godin area is expected to resume development in 2024 with no costs incurred by Sunshine Oil Sands[7](index=7&type=chunk) [Quarterly Performance Summary](index=3&type=section&id=Quarterly%20Performance%20Summary) This section provides key financial data for the past eight quarters, highlighting zero oil sands bitumen and petroleum sales, and net losses of CAD 9.793 million and CAD 41.845 million in Q2 and Q1 2025, respectively Key Financial Data for the Past Eight Quarters (CAD thousands, except per share amounts and barrels/day) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Oil Sands Bitumen Sales (barrels/day) | - | - | 311 | 479 | 884 | 1,227 | 1,550 | 9 | | Petroleum Sales | - | - | 3,074 | 5,211 | 10,674 | 11,437 | 11,932 | 49 | | Operating Costs | 2,473 | 1,878 | 3,062 | 2,683 | 3,269 | 4,290 | 4,528 | 3,581 | | Finance Costs | 1,449 | 3,111 | 4,308 | 2,630 | 2,920 | 2,740 | 2,684 | 2,668 | | Net (Loss)/Profit | 9,793 | 41,845 | 579 | 11,048 | 22,217 | (2,111) | 15,758 | | Net Loss/(Gain) Attributable to Equity Holders | 9,716 | 41,769 | 505 | 10,974 | 22,144 | (2,184) | 15,686 | | Per Share - Basic and Diluted | 0.03 | 0.17 | (0.00) | 0.05 | 0.09 | (0.01) | 0.06 | | Capital Expenditures | 1,375 | 121 | 962 | 275 | 672 | 171 | 378 | 1,864 | | Total Assets | 742,131 | 740,906 | 739,023 | 741,301 | 742,120 | 745,963 | 745,932 | 739,708 | | Working Capital Deficit | 108,749 | 99,258 | 92,666 | 514,041 | 83,772 | 84,242 | 79,458 | 94,082 | | Shareholders' Equity | 22,202 | 7,055 | 16,848 | 57,203 | 57,782 | 68,830 | 91,047 | 88,272 | [Operating Results](index=3&type=section&id=Operating%20Results) In Q2 and H1 2025, the company reported zero revenue from oil sands bitumen, diluent blend, realized oil sands bitumen, and petroleum sales due to the West Ells project shutdown, leading to a CAD 2.5 million operating cash flow net loss in Q2 2025 Realized Oil Sands Bitumen Revenue (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Oil Sands Bitumen Revenue | - | 10,674 | - | 22,111 | | Diluent Blend | - | (4,668) | - | (9,610) | | Realized Oil Sands Bitumen Revenue | - | 6,006 | - | 12,501 | | (CAD/barrel) | Not applicable | 50.67 | Not applicable | 46.28 | - Realized bitumen revenue decreased in Q2 and H1 2025, primarily due to the West Ells project shutdown for equipment maintenance[10](index=10&type=chunk) Operating Cash Flow (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Realized Oil Sands Bitumen Revenue | - | 6,006 | - | 12,501 | | Transportation | - | (1,576) | - | (4,017) | | Royalties | - | (408) | - | (653) | | Net Oil Sands Bitumen Revenue | - | 4,022 | - | 7,831 | | Operating Costs | (2,473) | (3,269) | (4,351) | (7,559) | | Operating Cash Flow | (2,473) | 753 | (4,351) | 272 | | Operating Netback (CAD/barrel) | Not applicable | 6.37 | Not applicable | 1.00 | - For the three months ended June 30, 2025, operating cash flow generated a net loss of **CAD 2.5 million**, compared to a net gain of **CAD 0.8 million** in the same period of 2024, primarily due to revenue loss from West Ells equipment maintenance[12](index=12&type=chunk) [Oil Sands Bitumen Production](index=4&type=section&id=Oil%20Sands%20Bitumen%20Production) For the three and six months ended June 30, 2025, West Ells' average bitumen production was zero barrels/day, a significant decrease from 2024, primarily due to the project shutdown for equipment maintenance Oil Sands Bitumen Production (barrels/day) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Oil Sands Bitumen Production | 0 | 905 | - | 1046 | - The decrease in production is primarily attributable to the West Ells project being shut down for equipment maintenance during Q1 and Q2 2025[13](index=13&type=chunk) [Oil Sands Bitumen Sales](index=4&type=section&id=Oil%20Sands%20Bitumen%20Sales) For the three and six months ended June 30, 2025, West Ells' average bitumen sales were zero barrels/day, a significant decrease from 2024, primarily due to the project shutdown for equipment maintenance Oil Sands Bitumen Sales (barrels/day) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Oil Sands Bitumen Sales | - | 884 | - | 1,055 | - The decrease in sales volume is primarily attributable to the West Ells project being shut down for equipment maintenance during Q1 and Q2 2025[15](index=15&type=chunk) [Petroleum Sales, Net of Royalties](index=5&type=section&id=Petroleum%20Sales%2C%20Net%20of%20Royalties) For the three and six months ended June 30, 2025, net petroleum sales after royalties were zero CAD, a significant decline from 2024, primarily due to revenue loss from West Ells equipment maintenance Petroleum Sales, Net of Royalties (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Petroleum Sales | - | 10,674 | - | 22,111 | | Royalties | - | (408) | - | (653) | | Petroleum Sales, Net of Royalties | - | 10,266 | - | 21,458 | | CAD/barrel | Not applicable | 86.60 | Not applicable | 79.44 | - The decrease in net petroleum sales is primarily attributable to revenue loss from West Ells equipment maintenance during Q1 and Q2 2025[16](index=16&type=chunk) [Royalty Rate](index=5&type=section&id=Royalty%20Rate) Royalty rates start at 1% of oil sands bitumen sales, increasing with WTI oil prices above CAD 55/barrel, up to a maximum of 9% at WTI prices of CAD 120/barrel or more - Royalty rates start at **1%** of oil sands bitumen sales, increasing by **1%** for every CAD 1 rise in WTI oil price above **CAD 55/barrel**, up to a maximum of **9%** (at WTI oil prices of **CAD 120/barrel** or more)[17](index=17&type=chunk) - For the three and six months ended June 30, 2025, royalties increased by **CAD 0.3 million** compared to the same period in 2024, primarily due to increased oil sands bitumen sales and additional expenditures to Burgess Energy Holdings, LLC[17](index=17&type=chunk) [Diluent Costs](index=5&type=section&id=Diluent%20Costs) For the three and six months ended June 30, 2025, total diluent costs were zero CAD, a significant reduction from 2024, primarily due to the West Ells facility shutdown for equipment maintenance Diluent Costs (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Diluent (at site) | - | 4,668 | - | 9,016 | | Diluent (at offload point) | - | - | - | 594 | | Total | - | 4,668 | - | 9,610 | | CAD/barrel | Not applicable | 39.37 | Not applicable | 35.58 | | Blend Ratio (at site) | Not applicable | 32.2% | Not applicable | 28.9% | | Blend Ratio (at offload point) | - | - | - | 10.9% | - Total diluent costs decreased by **CAD 4.7 million**, primarily due to the West Ells facility shutdown for equipment maintenance[19](index=19&type=chunk)[20](index=20&type=chunk) [Transportation](index=6&type=section&id=Transportation) For the three and six months ended June 30, 2025, transportation expenses were zero CAD, a significant reduction from 2024, primarily due to the West Ells facility shutdown for equipment maintenance Transportation Costs (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Transportation | - | 1,576 | - | 4,017 | | CAD/barrel | Not applicable | 13.29 | Not applicable | 14.87 | - Transportation expenses decreased, primarily due to the interruption of diluted oil sands bitumen sales caused by West Ells facility maintenance[21](index=21&type=chunk) [Operating Costs](index=6&type=section&id=Operating%20Costs) For the three months ended June 30, 2025, total operating costs were CAD 2.473 million, a decrease of CAD 1.6 million from 2024, primarily due to the West Ells project shutdown for equipment maintenance Operating Costs (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Costs | 2,473 | 3,269 | 4,351 | 7,559 | - The decrease in operating costs is primarily due to the West Ells project suspending production for equipment maintenance during Q1 and Q2 2025[22](index=22&type=chunk) [General and Administrative Expenses](index=6&type=section&id=General%20and%20Administrative%20Expenses) For the three and six months ended June 30, 2025, general and administrative expenses increased to CAD 2.01 million and CAD 7.311 million, respectively, primarily due to higher compensation and municipal fees General and Administrative Expenses (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Salaries, Consulting Fees, and Benefits | 1,616 | 1,373 | 3,234 | 2,819 | | Rent | - | 10 | 13 | 16 | | Legal and Audit | 6 | 26 | 29 | 88 | | Other | 389 | 448 | 4,035 | 3,538 | | Total | 2,010 | 1,857 | 7,311 | 6,461 | - The increase for the three-month period primarily stemmed from higher compensation expenses in Q2 2025[24](index=24&type=chunk) - The increase for the six-month period was primarily attributable to rising compensation expenses and municipal fees[24](index=24&type=chunk) [Finance Costs](index=7&type=section&id=Finance%20Costs) For the three months ended June 30, 2025, finance costs decreased by CAD 1.5 million to CAD 1.449 million, primarily due to interest expenses on loans from related parties and shareholders being settled through share issuance Finance Costs (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Senior Bond Interest Expense | 298 | 294 | 610 | 588 | | Other Loan Interest Expense | 218 | 71 | 352 | 133 | | Interest Expense on Borrowings from Related Parties and Shareholders | 718 | 2,030 | 2,860 | 3,908 | | Other Interest Expenses - Leases and Other | 215 | 84 | 300 | 159 | | Unwinding of Provision Discount | - | 441 | 438 | 872 | | Period-End Balance | 1,449 | 2,920 | 4,560 | 5,660 | - The decrease in finance costs is primarily attributable to interest expenses on loans from related parties and shareholders, which were settled through the issuance of shares[25](index=25&type=chunk) [Share-Based Compensation](index=7&type=section&id=Share-Based%20Compensation) For the three and six months ended June 30, 2025 and 2024, share-based compensation expenses were zero, with the company recognizing the fair value of share options using the Black-Scholes option pricing model - For the three and six months ended June 30, 2025 and 2024, share-based compensation expenses were **zero**[26](index=26&type=chunk) - The company determines the fair value of share options using the Black-Scholes option pricing model[26](index=26&type=chunk) [Depletion, Depreciation, and Impairment](index=7&type=section&id=Depletion%2C%20Depreciation%2C%20and%20Impairment) For the three months ended June 30, 2025, depletion and depreciation expenses decreased by CAD 1.8 million to CAD 0.174 million, primarily due to the West Ells project shutdown for equipment maintenance, resulting in no depletion expenses Depletion and Depreciation (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Depletion and Depreciation | 174 | 1,984 | 358 | 4,603 | | Depletion (CAD/barrel) | Not applicable | 15.08 | Not applicable | 15.55 | - Depletion and depreciation expenses decreased by **CAD 1.8 million**, primarily because no depletion expenses were incurred due to the West Ells project shutdown for equipment maintenance during Q1 and Q2 2025[28](index=28&type=chunk) - The company assesses E&E and PP&E assets for indicators of impairment or impairment reversal at each reporting date[29](index=29&type=chunk) - As of June 30, 2025 and 2024, the company found no indicators of further impairment losses (reversals) for E&E or the West Ells CGU[31](index=31&type=chunk) [Income Tax](index=8&type=section&id=Income%20Tax) For the three months ended March 31, 2025 and 2024, the company did not recognize any deferred income tax assets, primarily related to unrecognized tax losses, and held approximately CAD 1.43 billion in total available tax deductions as of June 30, 2025 - For the three months ended March 31, 2025 and 2024, the company did not recognize any deferred income tax assets, primarily related to unrecognized tax losses[32](index=32&type=chunk) - As of June 30, 2025, the company had approximately **CAD 1.43 billion** in total available tax deductions, with unrecognized tax losses expiring between 2029 and 2045[32](index=32&type=chunk) [Liquidity and Capital Resources](index=9&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company reported a working capital deficit of CAD 108.7 million and shareholders' equity of CAD 22.202 million, with a debt-to-asset ratio of 99%, and is actively seeking capital through equity issuance, monetization, joint ventures, and debt Liquidity and Capital Resources (CAD thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Working Capital Deficit | 108,749 | 92,666 | | Shareholders' Equity | 22,202 | 16,848 | - The company entered into interest waiver agreements with deferred holders, waiving **USD 31.5 million** in accrued interest annually from 2023 to 2025[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - As of June 30, 2025, the company had incurred a total of **USD 57.7 million** (approximately **CAD 83 million**) in unsecured license debt[39](index=39&type=chunk) - The company received payment notices from the Municipality of Wood Buffalo for municipal property taxes of **CAD 17.2 million** and overdue penalties of **CAD 23.7 million** for 2016-2025, and has sought judicial review[39](index=39&type=chunk) - As of June 30, 2025, the company's debt-to-asset ratio was **99%**, higher than **98%** as of December 31, 2024[42](index=42&type=chunk) - The company faces foreign currency exchange rate fluctuation risks, primarily involving HKD, USD, and RMB[43](index=43&type=chunk) [Royalty Agreement](index=11&type=section&id=Royalty%20Agreement) Sunshine Oil Sands entered a royalty agreement with Burgess Energy Holdings, L.L.C. (BEH) in August 2021, granting BEH an undivided interest in oil sands for CAD 20 million, with a June 2023 amendment accelerating a CAD 5 million payment and revising royalty rates for WCS prices above USD 80/barrel up to 25% - The company entered into a royalty agreement with BEH, granting BEH an undivided interest in oil sands for a total consideration of **CAD 20 million**[45](index=45&type=chunk) - The agreement was amended on June 8, 2023, accelerating a **CAD 5 million** payment to the company[46](index=46&type=chunk) - The amended agreement revised the royalty rate for WCS prices above **USD 80/barrel**, increasing it to a maximum of **25.00%** (from the original **15.00%**)[46](index=46&type=chunk) [Commitments and Contingencies](index=11&type=section&id=Commitments%20and%20Contingencies) Management estimates contractual maturity dates for company obligations, but actual dates may vary, and the company is involved in various claims and legal proceedings, including municipal property tax disputes and liens, for which adequate provisions have been made, though outcomes are uncertain - The company is involved in various claims and legal proceedings, including municipal property tax disputes and liens[40](index=40&type=chunk) - The company believes it has made adequate provisions for such claims, but the outcome of litigation cannot be definitively predicted[40](index=40&type=chunk) - As of June 30, 2025, the company had incurred liens totaling **CAD 0.82 million** (approximately **USD 0.57 million**)[40](index=40&type=chunk) [Related Party Transactions](index=12&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, the company paid CAD 0.25 million for management and consulting services to a director-affiliated firm, and as of June 30, 2025, had unsecured loans of approximately CAD 53.897 million from related companies and CAD 3.114 million from shareholders - For the six months ended June 30, 2025, **CAD 0.25 million** was paid to a consulting firm affiliated with a director for management and consulting services[48](index=48&type=chunk) - Mr. Sun Guoping, the company's Executive Chairman, beneficially owns approximately **30%** of the company's issued ordinary shares[48](index=48&type=chunk) - As of June 30, 2025, total unsecured loans from related companies amounted to approximately **CAD 53.897 million**, and from shareholders to approximately **CAD 3.114 million**[48](index=48&type=chunk) [Off-Balance Sheet Arrangements](index=12&type=section&id=Off-Balance%20Sheet%20Arrangements) As of June 30, 2025, the Group had no other off-balance sheet arrangements - As of June 30, 2025, the Group had no other off-balance sheet arrangements[49](index=49&type=chunk) [Purchases, Sales, and Redemptions of Sunshine Oil Sands' Listed Securities](index=12&type=section&id=Purchases%2C%20Sales%2C%20and%20Redemptions%20of%20Sunshine%20Oil%20Sands%27%20Listed%20Securities) In 2025, the company issued Class A ordinary shares under general and specific mandates to settle various debts, including 48,695,736 shares for CAD 3.05 million on April 17, 60,000,000 shares for CAD 6.727 million on June 25, and 162,310,261 shares for CAD 13.052 million on April 28 Class A Ordinary Share Issuances in 2025 (General Mandate) | Date | Creditor | Shares Issued | Issue Price (HKD/share) | Debt Settled (HKD) | Debt Settled (CAD) | | :--- | :--- | :--- | :--- | :--- | :--- | | April 17, 2025 | Creditor 1 | 48,695,736 | 0.35 | 17,043,508 | 3,050,787 | | June 25, 2025 | Creditor 2 | 60,000,000 | 0.64 | 38,400,000 | 6,727,635.87 | | July 30, 2025 | Mr. Zhang Jun | 8,174,030 | 0.50 | 4,087,015 | 716,869.26 | Class A Ordinary Share Issuances in 2025 (Specific Mandate) | Date | Creditor | Shares Issued | Issue Price (HKD/share) | Debt Settled (HKD) | Debt Settled (CAD) | | :--- | :--- | :--- | :--- | :--- | :--- | | April 28, 2025 | Creditor 3 | 162,310,261 | 0.45 | 73,039,619 | 13,052,180 | [Subsequent Events](index=13&type=section&id=Subsequent%20Events) Post-reporting period, the company settled debt with Mr. Zhang Jun by issuing 8,174,030 Class A ordinary shares on July 30, 2025, and on August 19, 2025, proposed to acquire a 51% stake in Nobao Technology Co., Ltd. via share issuance, which is a connected transaction - On July 30, 2025, the company entered into a settlement agreement with Mr. Zhang Jun, issuing **8,174,030** Class A ordinary shares to settle his debt[54](index=54&type=chunk) - On August 19, 2025, the company proposed to acquire a **51%** equity interest in Nobao Technology Co., Ltd. via share issuance for **HKD 50,919,450**, which constitutes a connected transaction[54](index=54&type=chunk) - On August 20, 2025, the company received a winding-up petition from Qiaoshi Finance Co., Ltd., and is taking legal measures to vigorously oppose it[55](index=55&type=chunk) [Changes in Accounting Policies](index=13&type=section&id=Changes%20in%20Accounting%20Policies) The company's significant accounting policies have remained unchanged since December 31, 2024 - The company's significant accounting policies have remained unchanged since December 31, 2024[56](index=56&type=chunk) [Critical Accounting Judgments and Estimates](index=13&type=section&id=Critical%20Accounting%20Judgments%20and%20Estimates) The company's critical accounting estimates significantly impact its financial position and operations, requiring management judgment, assumptions, and estimates that may change with evolving events and additional information - The company's critical accounting estimates significantly impact its financial position and operations, requiring management to make judgments, assumptions, and estimates[57](index=57&type=chunk) - These judgments, assumptions, and estimates may change with evolving events and additional information[57](index=57&type=chunk) [Risk Factors](index=13&type=section&id=Risk%20Factors) Resource exploration, development, and extraction businesses involve high risks, and the significant risks and uncertainties affecting the company, their potential impacts, and key risk management strategies remain consistent with those disclosed in the 2024 annual MD&A - Resource exploration, development, and extraction businesses involve high risks[59](index=59&type=chunk) - Significant risks and uncertainties, their potential impacts, and key risk management strategies remain unchanged from those disclosed in the 2024 annual Management's Discussion and Analysis[59](index=59&type=chunk) [Disclosure Controls and Procedures](index=14&type=section&id=Disclosure%20Controls%20and%20Procedures) As of June 30, 2025, the company's CFO and CEO assessed the disclosure controls and procedures as effective, providing reasonable assurance that material information is timely recorded, processed, summarized, and reported, with no significant changes in internal control over financial reporting during the period - As of June 30, 2025, the CFO and CEO assessed the company's disclosure controls and procedures as effective[60](index=60&type=chunk) - No significant changes in the Group's internal control over financial reporting were identified[61](index=61&type=chunk) [Forward-Looking Information](index=14&type=section&id=Forward-Looking%20Information) This Management's Discussion and Analysis contains forward-looking statements involving significant risks and uncertainties that could cause actual results to differ materially from projections, and investors are strongly cautioned not to place undue reliance on these statements, as the company has no obligation to update them - Certain statements in this Management's Discussion and Analysis are forward-looking statements, involving significant risks and uncertainties[62](index=62&type=chunk) - Actual results or outcomes may differ materially from those indicated in forward-looking statements, and investors should not place undue reliance on them[63](index=63&type=chunk) - The company has no obligation to update any forward-looking statements[63](index=63&type=chunk) [HKEX Additional Information](index=14&type=section&id=HKEX%20Additional%20Information) This section provides additional information required by the HKEX, covering corporate governance, directors' securities trading, share option movements, fair value of granted options, listed securities transactions, issued shares, employees, dividend policy, and interim results review and publication - The company is committed to maintaining high standards of corporate governance and confirms compliance with the Code set out in Appendix 14 of the HKEX Listing Rules for the period from January 1, 2025, to June 30, 2025, but is seeking appropriate insurance coverage for legal actions against directors[65](index=65&type=chunk) - The company confirms adoption of the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix 10 of the HKEX Listing Rules, and directors have confirmed compliance[66](index=66&type=chunk) - As of June 30, 2025, the company had **27** full-time employees, with total personnel expenses of **CAD 1.6 million** for the six months ended June 30, 2025[73](index=73&type=chunk) - The company did not declare or pay any dividends for the six months ended June 30, 2025[74](index=74&type=chunk) [Corporate Governance Code (the 'Code')](index=14&type=section&id=Corporate%20Governance%20Code%20%28the%20%27Code%27%29) The company is committed to high corporate governance standards and confirmed compliance with the HKEX Listing Rules' Code from January 1 to June 30, 2025, while actively seeking appropriate insurance coverage for legal actions against its directors - The company confirms compliance with the Code set out in Appendix 14 of the HKEX Listing Rules for the period from January 1, 2025, to June 30, 2025[65](index=65&type=chunk) - The company is seeking appropriate insurance coverage for legal actions against its directors[65](index=65&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers (the 'Model Code')](index=15&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers%20%28the%20%27Model%20Code%27%29) The company adopted the HKEX Listing Rules' Model Code for directors' securities transactions, and directors confirmed compliance with it and their code of conduct from January 1 to June 30, 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 of the HKEX Listing Rules[66](index=66&type=chunk) - Directors have confirmed compliance with the Model Code and their code of conduct for securities transactions during the period from January 1, 2025, to June 30, 2025[66](index=66&type=chunk) [Share Option Movements](index=15&type=section&id=Share%20Option%20Movements) For the period ended June 30, 2025, there were no share option movements for directors, chief executive, or other executive management, with both opening and closing balances remaining at zero Share Option Movements (as of December 31, 2024, to June 30, 2024) | Name | December 31, 2024 | Granted | Exercised | Forfeited | Lapsed | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors Subtotal | - | - | - | - | - | - | | Other Option Holders | - | - | - | - | - | - | | Total | - | - | - | - | - | - | - For the period ended June 30, 2025, share option movements for directors, chief executive, and other executive management showed **zero** opening and closing balances[67](index=67&type=chunk)[68](index=68&type=chunk) [Fair Value of Share Options Granted](index=15&type=section&id=Fair%20Value%20of%20Share%20Options%20Granted) The weighted average fair value of share options granted in prior years was zero CAD, with the company using the Black-Scholes model for valuation, adjusting expected life based on management's assessment of non-transferability, exercise restrictions, and behavioral considerations - The weighted average fair value of share options granted in prior years was **CAD 0**[69](index=69&type=chunk) - The company uses the Black-Scholes model to value options[69](index=69&type=chunk) Black-Scholes Model Input Variables | Input Variable | Six Months Ended June 30, 2025 | Year Ended December 31, 2025 | | :--- | :--- | :--- | | Share Price at Grant Date (CAD) | - | - | | Exercise Price (CAD) | - | - | | Expected Volatility (%) | - | - | | Option Life (Years) | - | - | | Risk-Free Rate (%) | - | - | | Expected Forfeiture Rate (%) | - | - | [Purchases, Sales, and Redemptions of Sunshine Oil Sands' Listed Securities](index=15&type=section&id=Purchases%2C%20Sales%2C%20and%20Redemptions%20of%20Sunshine%20Oil%20Sands%27%20Listed%20Securities) During Q2 2025, Sunshine Oil Sands did not engage in any purchases, sales, or redemptions of its listed securities - During Q2 2025, Sunshine Oil Sands did not engage in any purchases, sales, or redemptions of its listed securities[71](index=71&type=chunk) [Issued Shares](index=16&type=section&id=Issued%20Shares) As of June 30, 2025, the company had 503,180,414 Class A ordinary shares issued - As of June 30, 2025, the company had **503,180,414** Class A ordinary shares issued[72](index=72&type=chunk) [Employees](index=16&type=section&id=Employees) As of June 30, 2025, the company had 27 full-time employees, with total personnel expenses amounting to CAD 1.6 million for the six months ended June 30, 2025 - As of June 30, 2025, the company had **27** full-time employees[73](index=73&type=chunk) - For the six months ended June 30, 2025, total personnel expenses amounted to **CAD 1.6 million**[73](index=73&type=chunk) [Dividends](index=16&type=section&id=Dividends) The company did not declare or pay any dividends for the six months ended June 30, 2025 - The company did not declare or pay any dividends for the six months ended June 30, 2025[74](index=74&type=chunk) [Review of Interim Annual Results](index=16&type=section&id=Review%20of%20Interim%20Annual%20Results) The company's condensed consolidated interim financial statements for the three and six months ended June 30, 2025, were reviewed by the Audit Committee and approved by the Board of Directors - The company's condensed consolidated interim financial statements for the three and six months ended June 30, 2025, were reviewed by the Audit Committee and approved by the Board of Directors[75](index=75&type=chunk) [Publication of Information](index=16&type=section&id=Publication%20of%20Information) This quarterly results announcement will be published on the HKEX and company websites in both Chinese and English, with the English version prevailing in case of discrepancies - This quarterly results announcement will be published on the HKEX website (www.hkexnews.hk) and the company's website (www.sunshineoilsands.com)[76](index=76&type=chunk) - This announcement is available in both Chinese and English, with the English version prevailing in case of any discrepancies[76](index=76&type=chunk) [2025 Outlook](index=16&type=section&id=2025%20Outlook) As commodity demand recovers, Sunshine Oil Sands will continue to focus on cost control and prudently seek business expansion and transformation opportunities, including a proposed acquisition of a 51% stake in a clean energy subsidiary of Nobao Energy Holdings (China) Co., Ltd - The company will continue to focus on cost control and prudently seek business expansion and transformation opportunities[77](index=77&type=chunk) - The company plans to acquire a **51%** equity interest in a clean energy business subsidiary of Nobao Energy Holdings (China) Co., Ltd., which is expected to significantly improve its financial position[77](index=77&type=chunk) - The target company's geothermal heat pump technology can be applied to the company's mining operations, enhancing future cost-effectiveness[77](index=77&type=chunk) - The company will also work with joint venture partners to restart operations at the Muskwa and Godin projects[78](index=78&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何 聲明，並明確表示，概不對因本公告全部或任何部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。 雲南水務投資股份有限公司 Yunnan Water Investment Co., Limited* （於中華人民共和國註冊成立的股份有限公司） （股份代號：6839） 截至二零二五年六月三十日止六個月 中期業績公告 財務摘要 1 － 收益約為人民幣1,157.6百萬元，較去年同期減少約6.8%。 － 毛利約為人民幣148.5百萬元，較去年同期減少約26.2%。 － 期內虧損約為人民幣1,047.5百萬元，而去年同期虧損約為人民幣923.9百萬元；報告 期內錄得淨虧損主要由於運營收入減少及金融資產預期信貸撥備及計提長期資產減值 撥備所致。 － 本公司普通股股東應佔虧損約為人民幣875.4百萬元，每股基本虧損約為人民幣0.734 元。 － 董事會不建議派發截至二零二五年六月三十日止六個月之任何中期股息。 I. 本集團的財務資料 中期簡明合併損益及其他綜合收益表 | | | 截至六月三十日止六個月 | | | ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) An unaudited financial overview for the six months ended June 30, 2025, presents key performance indicators Unaudited Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 382,260 | 277,839 | | Gross Profit | 149,535 | 114,770 | | Profit before tax | 11,593 | 5,216 | | Profit for the period | 10,255 | 3,399 | | Earnings per share attributable to ordinary equity holders of the Company (RMB cents) | 3.16 | 1.07 | [Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operational performance, strategic initiatives, and financial management for the period [Business Review](index=2&type=section&id=Business%20Review) The company deepened AI recommendation and AIGC R&D, with core businesses in digital marketing, reading, and gaming, while actively exploring RWA and expanding overseas markets [Artificial Intelligence (AI) Application Segment](index=3&type=section&id=Artificial%20Intelligence%20%28AI%29%20Application%20Segment) The company achieved significant growth in AI application segments like digital marketing, digital reading, and online game publishing, leveraging AIGC to enhance ad creativity, content matching, and game publishing efficiency, while actively expanding into overseas short-drama and other markets - The company continuously invested in AI-generated content (AIGC) and intelligent recommendation technology R&D, with R&D expenses reaching **RMB 22.3 million** in the first half of the year[6](index=6&type=chunk) - Digital marketing services revenue reached **RMB 230.3 million**, a year-on-year increase of **47.0%**, primarily due to AIGC technology enhancing the intelligence of advertising creative generation systems and market expansion[8](index=8&type=chunk) - The digital reading platform accumulated **47 million** registered users and an average of **25 million** monthly active users, improving content matching efficiency through its AI recommendation engine[9](index=9&type=chunk) - The company actively deployed short-drama content recommendation services, entering European, American, Southeast Asian, Japanese, and Korean markets via the overseas short-drama application Eashort, and exploring synergistic monetization models for short-dramas with games and interactive content[10](index=10&type=chunk) - Online game publishing services revenue was **RMB 6.7 million**, a year-on-year increase of **26.3%**, focusing on overseas casual game publishing and utilizing AI technology to analyze user behavior and shorten testing cycles[11](index=11&type=chunk) [RWA (Real World Assets) and Other Digital Assets Segment](index=5&type=section&id=RWA%20%28Real%20World%20Assets%29%20and%20Other%20Digital%20Assets%20Segment) The company signed a 10-year framework agreement with a Hong Kong tech company to develop RWA products and digital assets, planning data center investments to integrate AI and blockchain, driving a strategic shift from a 'content platform' to a 'digital asset operator' - In June 2025, a 10-year framework cooperation agreement was signed with a Hong Kong technology company to jointly develop RWA products and other digital asset projects, covering cultural and creative intellectual property-related assets[12](index=12&type=chunk) - Both parties signed a letter of intent to invest in data centers in Hong Kong, Japan, or other Southeast Asian countries and regions, with a total consideration not exceeding **HKD 3 billion**, aiming to provide digital asset infrastructure support for RWA products[12](index=12&type=chunk) - This cooperation helps integrate AI recommendation technology with blockchain technology, enhancing digital asset operation capabilities and potentially driving a strategic transformation from a "content platform" to a "digital asset operator"[12](index=12&type=chunk) [Future Outlook](index=5&type=section&id=Future%20Outlook) The company plans to strengthen AI recommendation technology, deepen AI commercialization, accelerate global market expansion with short-drama content, and seize RWA and Web3.0 opportunities to advance platform strategic upgrades [Strengthening AI Recommendation Technology Barriers and Enhancing AIGC Innovation Capabilities](index=6&type=section&id=Strengthening%20AI%20Recommendation%20Technology%20BArriers%20and%20Enhancing%20AIGC%20Innovation%20Capabilities) The company will leverage large model technology to build a multi-dimensional content understanding system, enhancing AI engine precision through deep semantic analysis and time-aware attention mechanisms, while achieving cross-modal AIGC generation from text to image/video and optimizing emotional expression in literary and voice generation - Relying on the latest large model technology, the company will build a multi-dimensional content understanding system, introducing deep semantic analysis algorithms and time-aware attention mechanisms to enhance AI engine precision and efficiency[14](index=14&type=chunk) - In AIGC technology innovation, a multi-modal generation framework based on diffusion models will be constructed to achieve cross-modal content generation from text to images and videos[14](index=14&type=chunk) - Optimization of long-text generation for literary creation will enhance commercial value, and voice generation will add an emotional intensity modeling module to achieve precise expression of complex emotions in film and television dubbing[14](index=14&type=chunk) [Deepening AI Technology Commercialization and Continuously Expanding Application Areas](index=7&type=section&id=Deepening%20AI%20Technology%20Commercialization%20and%20Continuously%20Expanding%20Application%20Areas) The company will optimize its digital marketing platform architecture, using big data and deep learning to boost marketing conversion efficiency, applying AI to literary creation, advertising, voice generation, and film/television, and exploring new applications in digital music, video, and e-commerce - The company will continuously optimize the technical architecture and service processes of its digital marketing platform, enhancing marketing conversion efficiency through real-time big data analysis, deep learning algorithms, and AIGC technology[15](index=15&type=chunk) - AI technology applications in literary creation, advertising, voice generation, and film/television creation will be continuously upgraded, and new digital content recommendation scenarios such as digital music, video, and e-commerce will be actively explored[15](index=15&type=chunk) [Accelerating Global Market Expansion with Short-Drama Content as a Breakthrough](index=7&type=section&id=Accelerating%20Global%20Market%20Expansion%20with%20Short-Drama%20Content%20as%20a%20Breakthrough) The company will use short-drama content as a core entry point, building an AI-powered translation and international original content creation system, initially focusing on European and American markets before global expansion, while actively promoting overseas game publishing and collaborating with leading developers - Short-drama content will serve as a core entry point to build an AI-powered high-quality translation system and an international original content creation system, with customized development for different regional markets[16](index=16&type=chunk) - The initial focus will be on mature markets in Europe and America, gradually expanding to other high-potential global markets[16](index=16&type=chunk) - Overseas game publishing will be actively promoted, establishing strategic partnerships with leading game developers, with several high-quality games expected to launch in key target markets soon[16](index=16&type=chunk) [Seizing RWA and Web3.0 Opportunities to Comprehensively Advance Platform Strategic Upgrades](index=8&type=section&id=Seizing%20RWA%20and%20Web3.0%20Opportunities%20to%20Comprehensively%20Advance%20Platform%20Strategic%20Upgrades) The company is committed to RWA digital issuance and Web3.0 ecosystem development, having formed Novus Infusion Partners Limited with Greenland Financial Technology Group and planning a strategic investment in Lightnet Pte. Ltd. to build an 'AI+Web3.0+RWA' ecosystem and drive comprehensive platform transformation - Novus Infusion Partners Limited has been established as a joint venture with Supercomputing Technology Co., Ltd., a subsidiary of Greenland Financial Technology Group Co., Ltd[17](index=17&type=chunk) - A strategic investment in Lightnet Pte. Ltd. is planned, a company offering global payment solutions with real-time settlement capabilities powered by AI and blockchain technology[17](index=17&type=chunk) - Leveraging strategic collaborations, the company aims to build an "AI+Web3.0+RWA" ecosystem closed-loop, advancing the on-chain rights confirmation and value transformation system for digital assets, and achieving efficient value integration of digital content, blockchain technology, and real-world assets[18](index=18&type=chunk) [Share Option Scheme](index=17&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on May 17, 2024, to attract and retain talent, incentivize employees, and align shareholder interests, granting options to three executive directors and 126 employees on April 3, 2025, at an exercise price of HKD 3.924 per share, subject to vesting conditions - The company adopted a share option scheme on May 17, 2024, for a 10-year period, aiming to attract, retain, and incentivize employees[54](index=54&type=chunk) - On April 3, 2025, share options totaling **3,930,400** shares were granted to three executive directors and 126 employees[55](index=55&type=chunk) - The exercise price for the share options is **HKD 3.924** per share, with **50%** vesting from April 3, 2026, and the remaining **50%** from April 3, 2027, both subject to relevant performance targets[55](index=55&type=chunk) [Foreign Exchange Risk Management](index=18&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group primarily operates in China, with most income and expenses denominated in RMB, holding USD-denominated foreign investments but no foreign currency borrowings as of June 30, 2025, and will continue to monitor exchange rate fluctuations for enhanced risk management - The Group's operations are primarily conducted in China, with the majority of its income and expenses denominated in RMB[56](index=56&type=chunk) - As of June 30, 2025, the Group held foreign investments denominated in USD but had no borrowings denominated in foreign currencies[56](index=56&type=chunk) - The Group will continue to monitor exchange rates to respond to changes in the foreign exchange market and strengthen exchange rate risk management through various means[56](index=56&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries and Affiliated Companies](index=18&type=section&id=Significant%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies) For the six months ended June 30, 2025, the Group held no significant investments and made no material acquisitions or disposals of subsidiaries, associates, joint ventures, or other affiliated companies - For the six months ended June 30, 2025, the Group held no significant investments and made no material acquisitions or disposals of subsidiaries, associates, joint ventures, or other affiliated companies[57](index=57&type=chunk) [Use of Proceeds from Global Offering](index=18&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company listed on June 7, 2024, with net proceeds of approximately HKD 40.7 million from its global offering, of which HKD 31.1 million was utilized by June 30, 2025, primarily for R&D, digital reading platform enhancement, digital marketing expansion, and relaunching overseas online game publishing - The net proceeds from the global offering amounted to approximately **HKD 40.7 million**[58](index=58&type=chunk) - As of June 30, 2025, **HKD 31.1 million** of the proceeds had been utilized, with **HKD 9.6 million** remaining unutilized[58](index=58&type=chunk)[60](index=60&type=chunk) Overview of Use of Proceeds from Global Offering (As of June 30, 2025) | Purpose | Percentage of Total Net Proceeds | Amount Available (HKD million) | Amount Utilized (HKD million) | Amount Unutilized (HKD million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhancing R&D capabilities | 45.0% | 18.3 | 11.1 | 7.2 | Q2 2026 | | Enhancing third-party digital reading platform capabilities | 25.0% | 10.2 | 9.0 | 1.2 | Q3 2026 | | Expanding digital marketing services | 15.0% | 6.1 | 4.9 | 1.2 | Q2 2026 | | Relaunching online game publishing services in overseas markets | 15.0% | 6.1 | 6.1 | 0 | – | | **Total** | **100.0%** | **40.7** | **31.1** | **9.6** | | [Use of Proceeds from Placing of Existing Shares and Subscription of New Shares under General Mandate](index=21&type=section&id=Use%20of%20Proceeds%20from%20Placing%20of%20Existing%20Shares%20and%20Subscription%20of%20New%20Shares%20under%20General%20Mandate) The company completed a placing and subscription in June 2025, generating net proceeds of approximately HKD 180.7 million, which will be used for AI recommendation engine R&D, expanding overseas online game and short-drama markets, and upgrading smart advertising platforms - A placing and subscription agreement was entered into on June 20, 2025, completing the June placing and June subscription, with a net subscription price of approximately **HKD 3.15** per share[61](index=61&type=chunk)[62](index=62&type=chunk) - The net proceeds from the June subscription amounted to approximately **HKD 180.7 million**, aimed at expanding the shareholder base, strengthening the capital base, and optimizing the financial position[62](index=62&type=chunk) Overview of Use of Proceeds from June Subscription (As of June 30, 2025) | Purpose | Percentage of Total Net Proceeds | Amount Available (HKD million) | Amount Utilized (HKD million) | Amount Unutilized (HKD million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Research and development of AI recommendation engine and AIGC technology investment | 40.0% | 72.3 | 0 | 72.3 | Q2 2027 | | Expanding overseas online game and short-drama markets | 40.0% | 72.3 | 0 | 72.3 | Q4 2026 | | Upgrading and development of smart advertising platform | 20.0% | 36.1 | 0 | 36.1 | Q2 2027 | | **Total** | **100.0%** | **180.7** | **0** | **180.7** | | [Financial Review](index=9&type=section&id=Financial%20Review) This section provides a detailed review of the company's operating results, financial position, liquidity, and capital expenditures for the reporting period [Operating Results](index=9&type=section&id=Operating%20Results) For the six months ended June 30, 2025, revenue grew by **37.6%** to **RMB 382.3 million**, driven by digital marketing and reading platforms, gross profit increased by **30.3%**, but gross margin slightly declined due to higher digital marketing contribution, while profit for the period significantly rose to **RMB 10.3 million**, with net profit margin improving to **2.7%** [Revenue Analysis](index=9&type=section&id=Revenue%20Analysis) Total revenue increased by **37.6%** to **RMB 382.3 million**, primarily driven by **47.0%** growth in digital marketing services and **31.3%** in digital reading platform services, with online game publishing also growing, while other digital content services declined - Total revenue increased by **37.6%** from **RMB 277.8 million** in H1 2024 to **RMB 382.3 million** in H1 2025[19](index=19&type=chunk) Revenue Changes by Business Line (RMB million) | Business Line | H1 2025 | H1 2024 | Year-on-Year Growth Rate | | :--- | :--- | :--- | :--- | | Digital Reading Platform Services | 139.0 | 105.8 | 31.3% | | Digital Marketing Services | 230.3 | 156.6 | 47.0% | | Online Game Publishing Services | 6.7 | 5.3 | 26.3% | | Other Digital Content Services | 6.3 | 10.1 | -37.8% | [Cost of Sales Analysis](index=9&type=section&id=Cost%20of%20Sales%20Analysis) Total cost of sales increased by **42.7%** to **RMB 232.7 million**, mainly due to higher costs in digital marketing services, aligning with its revenue growth, with cost changes across business lines generally mirroring revenue changes - Total cost of sales increased by **42.7%** from **RMB 163.1 million** in H1 2024 to **RMB 232.7 million** in H1 2025[21](index=21&type=chunk) - Cost of sales for digital marketing services increased by **47.9%** to **RMB 213.8 million**, consistent with the increase in revenue for this business line[22](index=22&type=chunk) - Cost of sales for digital reading platform services increased by **15.0%** to **RMB 13.2 million**, and for online game publishing services increased by **9.3%** to **RMB 2.8 million**, both consistent with revenue growth[21](index=21&type=chunk)[22](index=22&type=chunk) [Gross Profit and Gross Margin Analysis](index=10&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Analysis) Total gross profit increased by **30.3%** to **RMB 149.5 million**, but the overall gross margin decreased from **41.3%** to **39.1%**, primarily due to the increased revenue contribution from lower-margin digital marketing services, while digital reading platform services maintained high gross margins and online game publishing services saw an increase - Total gross profit increased by **30.3%** from **RMB 114.8 million** in H1 2024 to **RMB 149.5 million** in H1 2025[23](index=23&type=chunk) - The overall gross margin decreased from **41.3%** in H1 2024 to **39.1%** in H1 2025, mainly due to the increased revenue contribution from lower-margin digital marketing services[23](index=23&type=chunk) Gross Margin Changes by Business Line | Business Line | H1 2025 Gross Margin | H1 2024 Gross Margin | | :--- | :--- | :--- | | Digital Reading Platform Services | 90.5% | 89.2% | | Digital Marketing Services | 7.2% | 7.7% | | Online Game Publishing Services | 58.7% | 52.3% | | Other Digital Content Services | 52.4% | 54.8% | [Other Income and Expenses Analysis](index=11&type=section&id=Other%20Income%20and%20Expenses%20Analysis) Other income and gains slightly increased, sales and distribution expenses surged by **53.9%** due to overseas promotion, administrative expenses significantly decreased by **63.8%** due to the absence of listing expenses, R&D expenses grew by **26.9%** from increased server bandwidth and staff costs, and finance costs rose by **84.9%** due to higher average interest-bearing borrowings - Other income and gains increased by **4.4%** to **RMB 1.8 million**, primarily from government subsidies and interest income[26](index=26&type=chunk) - Sales and distribution expenses increased by **53.9%** to **RMB 105.9 million**, mainly due to increased promotion of overseas reading and short-drama products[27](index=27&type=chunk) - Administrative expenses decreased by **63.8%** to **RMB 8.4 million**, primarily due to the absence of listing expenses in the current period[28](index=28&type=chunk) - R&D expenses increased by **26.9%** to **RMB 22.3 million**, mainly due to increased server bandwidth expenses and staff costs[29](index=29&type=chunk) - Finance costs increased by **84.9%** to **RMB 3.5 million**, primarily attributable to an increase in the average interest-bearing borrowing balance during the period[31](index=31&type=chunk) [Profit Before Tax and Profit for the Period](index=12&type=section&id=Profit%20Before%20Tax%20and%20Profit%20for%20the%20Period) Profit before tax increased from **RMB 5.2 million** in H1 2024 to **RMB 11.6 million** in H1 2025, with profit for the period rising from **RMB 3.4 million** to **RMB 10.3 million**, and net profit margin improving from **1.2%** to **2.7%** - Profit before tax increased from **RMB 5.2 million** in H1 2024 to **RMB 11.6 million** in H1 2025[32](index=32&type=chunk) - Profit for the period increased from **RMB 3.4 million** in H1 2024 to **RMB 10.3 million** in H1 2025[34](index=34&type=chunk) - Net profit margin improved from **1.2%** in H1 2024 to **2.7%** in H1 2025[34](index=34&type=chunk) [Financial Position](index=13&type=section&id=Financial%20Position) As of June 30, 2025, total assets grew by **17.2%** to **RMB 798.2 million**, total liabilities decreased by **27.2%** to **RMB 171.1 million**, and total equity increased by **40.7%** to **RMB 627.1 million**, with net current assets significantly improving due to increased current assets and reduced current liabilities [Overview of Assets and Liabilities](index=13&type=section&id=Overview%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets increased by **17.2%** to **RMB 798.2 million**, driven by higher cash and cash equivalents and prepayments, while total liabilities decreased by **27.2%** to **RMB 171.1 million** due to reduced bank borrowings, and total equity grew by **40.7%** to **RMB 627.1 million** - Total assets increased by **17.2%** from **RMB 680.8 million** as of December 31, 2024, to **RMB 798.2 million** as of June 30, 2025[35](index=35&type=chunk) - Total liabilities decreased by **27.2%** from **RMB 235.1 million** as of December 31, 2024, to **RMB 171.1 million** as of June 30, 2025, primarily due to a reduction in bank borrowings[35](index=35&type=chunk) - Total equity increased by **40.7%** from **RMB 445.7 million** as of December 31, 2024, to **RMB 627.1 million** as of June 30, 2025[35](index=35&type=chunk) [Liquidity Analysis](index=13&type=section&id=Liquidity%20Analysis) Net current assets increased by **55.6%** from **RMB 343.5 million** as of December 31, 2024, to **RMB 534.5 million** as of June 30, 2025, primarily due to a **22.2%** increase in current assets and a **27.5%** decrease in current liabilities - Net current assets increased by **55.6%** from **RMB 343.5 million** as of December 31, 2024, to **RMB 534.5 million** as of June 30, 2025[36](index=36&type=chunk) - Current assets increased by **22.2%** to **RMB 702.1 million**, while current liabilities decreased by **27.5%** to **RMB 167.7 million**[36](index=36&type=chunk) [Key Balance Sheet Items](index=14&type=section&id=Key%20Balance%20Sheet%20Items) Trade receivables and financial assets at fair value through profit or loss remained stable, trade payables decreased by **19.9%**, other payables and accrued expenses increased by **5.9%**, and current contract liabilities decreased by **9.4%**, while property, plant, and equipment in non-current assets decreased by **15.9%** due to depreciation, and other intangible assets increased by **16.5%** due to short-drama copyright acquisitions - Trade receivables remained relatively stable at **RMB 225.1 million**[37](index=37&type=chunk) - Financial assets at fair value through profit or loss remained stable at **RMB 72.7 million**[38](index=38&type=chunk) - Trade payables decreased by **19.9%** to **RMB 6.7 million**, primarily due to the settlement of supplier payments[39](index=39&type=chunk) - Other payables and accrued expenses increased by **5.9%** to **RMB 14.0 million**, mainly due to increased accruals for marketing expenses and server bandwidth expenses[40](index=40&type=chunk) - Property, plant, and equipment decreased by **15.9%** to **RMB 15.8 million**, primarily due to depreciation of existing fixed assets[43](index=43&type=chunk) - Other intangible assets increased by **16.5%** to **RMB 41.8 million**, mainly due to the acquisition of short-drama copyrights[45](index=45&type=chunk) [Liquidity and Financial Resources](index=15&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, cash and cash equivalents increased by **60.6%** to **RMB 258.4 million**, mainly from share placing proceeds, while interest-bearing bank and other borrowings decreased by **31.5%** to **RMB 132.2 million**, and the gearing ratio dropped from **43.3%** to **21.1%**, with no hedging activities undertaken by the Group - Cash and cash equivalents increased by **60.6%** to **RMB 258.4 million**, primarily due to proceeds from share placing[49](index=49&type=chunk) - Interest-bearing bank and other borrowings decreased by **31.5%** to **RMB 132.2 million**, mainly due to the repayment of a portion of bank borrowings[49](index=49&type=chunk) - The gearing ratio (total debt divided by total equity) decreased from **43.3%** as of December 31, 2024, to **21.1%** as of June 30, 2025[49](index=49&type=chunk) - For the six months ended June 30, 2025, the Group did not use any financial instruments for hedging purposes[50](index=50&type=chunk) [Capital Expenditure](index=16&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, capital expenditure was **RMB 15.7 million**, a **123.7%** increase year-on-year, primarily for property, plant, and equipment and intangible assets, expected to be funded mainly by cash generated from operations and net proceeds from share placing - Capital expenditure amounted to **RMB 15.7 million**, an increase of **123.7%** compared to **RMB 7.0 million** in H1 2024[51](index=51&type=chunk) - Capital expenditure was primarily for property, plant, and equipment and intangible assets[51](index=51&type=chunk) [Contingent Liabilities and Pledge of Assets](index=16&type=section&id=Contingent%20Liabilities%20and%20Pledge%20of%20Assets) As of June 30, 2025, the Group had no significant unrecorded contingent liabilities or material pledges of assets - As of June 30, 2025, the Group had no significant unrecorded contingent liabilities[52](index=52&type=chunk) - As of June 30, 2025, the Group had no material pledges of assets[53](index=53&type=chunk) [Unaudited Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=23&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the unaudited consolidated financial performance, including revenue, profit, and comprehensive income, for the six months ended June 30, 2025 Unaudited Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30, 2025) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 382,260 | 277,839 | | Cost of sales | (232,725) | (163,069) | | **Gross Profit** | **149,535** | **114,770** | | Other income and gains | 1,752 | 1,678 | | Selling and distribution expenses | (105,903) | (68,801) | | Administrative expenses | (8,364) | (23,080) | | Research and development expenses | (22,312) | (17,580) | | Fair value gain on financial assets at fair value through profit or loss | 403 | 97 | | Share of loss of an associate | (65) | – | | Finance costs | (3,453) | (1,868) | | **Profit before tax** | **11,593** | **5,216** | | Income tax expense | (1,338) | (1,817) | | **Profit for the period** | **10,255** | **3,399** | | Total comprehensive income for the period | 12,706 | 2,055 | | Earnings per share attributable to ordinary equity holders of the parent (RMB cents) | 3.16 | 1.07 | [Unaudited Condensed Interim Consolidated Statement of Financial Position](index=25&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides an unaudited consolidated overview of the company's assets, liabilities, and equity as of June 30, 2025 Unaudited Condensed Interim Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 15,814 | 18,800 | | Goodwill | 32,273 | 32,273 | | Other intangible assets | 41,787 | 35,854 | | Total non-current assets | 96,054 | 106,176 | | **Current assets** | | | | Trade receivables | 225,102 | 224,561 | | Cash and cash equivalents | 258,359 | 160,846 | | Total current assets | 702,148 | 574,673 | | **Current liabilities** | | | | Trade payables | 6,656 | 8,309 | | Interest-bearing bank and other borrowings | 132,171 | 193,050 | | Total current liabilities | 167,688 | 231,194 | | **Net current assets** | **534,460** | **343,479** | | **Net assets** | **627,077** | **445,744** | | **Total equity** | **627,077** | **445,744** | [Notes to the Unaudited Condensed Interim Consolidated Financial Information](index=27&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Information) This section provides detailed notes on the company's accounting policies, operational segments, revenue, expenses, taxation, earnings per share, and financial instruments [Company and Accounting Information](index=27&type=section&id=Company%20and%20Accounting%20Information) The company, incorporated in the Cayman Islands on February 9, 2022, and listed on the HKEX Main Board on June 7, 2024, primarily engages in digital reading, marketing, online game publishing, and other digital content services in China, with interim financial information prepared under HKAS 34 using historical cost convention and presented in RMB, with no significant impact from HKAS 21 amendments on lack of exchangeability - The company was incorporated in the Cayman Islands on February 9, 2022, and listed on the Main Board of the Hong Kong Stock Exchange on June 7, 2024[69](index=69&type=chunk) - Its principal activities include digital reading recommendation services, digital marketing services, online game publishing services, and other digital content services in China, with no significant changes during the reporting period[69](index=69&type=chunk) - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34, issued by the Hong Kong Institute of Certified Public Accountants, using the historical cost convention and presented in RMB[70](index=70&type=chunk) - The amendments to Hong Kong Accounting Standard 21 regarding lack of exchangeability had no impact on this condensed interim consolidated financial information[72](index=72&type=chunk) [Operating Segments and Customer Information](index=28&type=section&id=Operating%20Segments%20and%20Customer%20Information) The Group, primarily engaged in various digital content services in mainland China, does not present operating segment information due to integrated resources and lack of separate financial data, with all significant external customers and non-current assets located in mainland China, and no single external customer contributing 10% or more of total revenue during the reporting period - The Group does not present operating segment information because resources are integrated, and separate financial information for operating segments is not provided[73](index=73&type=chunk) - All significant external customers and non-current assets of the Group are located in mainland China[74](index=74&type=chunk) - For the six months ended June 30, 2025, and 2024, no revenue from a single external customer accounted for **10%** or more of the Group's total revenue[75](index=75&type=chunk) [Details of Revenue and Other Income](index=29&type=section&id=Details%20of%20Revenue%20and%20Other%20Income) Total revenue from contracts with customers was **RMB 382.26 million**, primarily from digital marketing services and digital reading with advertising, with revenue recognized mainly at a point in time, and total other income and gains of **RMB 1.752 million**, mainly comprising government grants and interest income Revenue from Contracts with Customers by Type of Goods or Services (RMB '000) | Type of Goods or Services | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Paid digital reading services | 9,940 | 7,446 | | Digital reading with advertising | 129,061 | 98,397 | | Digital marketing services | 230,312 | 156,623 | | Online game publishing services | 6,672 | 5,284 | | Other digital content services | 6,275 | 10,089 | | **Total** | **382,260** | **277,839** | - Revenue recognition is primarily completed at a point in time, accounting for the vast majority of total revenue[76](index=76&type=chunk) Other Income and Gains Analysis (RMB '000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Government grants | 600 | 533 | | Interest income | 1,019 | 921 | | Others | 133 | 224 | | **Total** | **1,752** | **1,678** | [Details of Costs and Expenses](index=30&type=section&id=Details%20of%20Costs%20and%20Expenses) Profit before tax is derived after deducting items such as cost of sales, depreciation, amortization, employee benefit expenses, and lease payments not included in lease liabilities, with listing expenses being zero in H1 2025 compared to **RMB 14.323 million** in H1 2024 Deductions from Profit Before Tax (RMB '000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of sales | 232,725 | 163,069 | | Depreciation of property, plant and equipment | 3,082 | 3,342 | | Depreciation of right-of-use assets | 153 | 78 | | Amortization of other intangible assets | 9,690 | 7,992 | | Lease payments not included in the measurement of lease liabilities | 1,168 | 100 | | Listing expenses | – | 14,323 | | Employee benefit expenses (including directors' emoluments) | 20,957 | 18,007 | | Fair value gain on financial assets at fair value through profit or loss | (403) | (97) | | Impairment (reversal) / provision for trade receivables | (98) | 581 | [Taxation and Dividends](index=31&type=section&id=Taxation%20and%20Dividends) Income tax expense was **RMB 1.338 million**, a decrease from the prior period, mainly due to increased deferred income tax expense, with some subsidiaries enjoying a **15%** high-tech enterprise tax rate or a **5%** small-profit enterprise tax rate, and the Board not recommending any interim dividend for the six months ended June 30, 2025 - Income tax expense was **RMB 1.338 million**, a decrease from the prior period, primarily due to an increase in deferred income tax expense[33](index=33&type=chunk)[81](index=81&type=chunk) - Some subsidiaries qualify as high-tech enterprises in China, enjoying a reduced corporate income tax rate of **15%**, while others apply small-profit enterprise income tax preferential policies, paying tax at a **5%** rate[83](index=83&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[82](index=82&type=chunk) [Earnings Per Share](index=32&type=section&id=Earnings%20Per%20Share) For the period ended June 30, 2025, basic earnings per share were **RMB 3.16 cents**, calculated based on profit attributable to owners of the parent of **RMB 10.404 million** and a weighted average of **329,253,984** ordinary shares outstanding, with no dilutive effect from share options on basic EPS for the period - For the period ended June 30, 2025, basic earnings per share were **RMB 3.16 cents** (2024: **RMB 1.07 cents**)[66](index=66&type=chunk) - The profit attributable to ordinary equity holders of the parent used in calculating basic earnings per share was **RMB 10,404 thousand** (2024: **RMB 3,385 thousand**)[87](index=87&type=chunk) - The weighted average number of ordinary shares outstanding during the period used in calculating basic earnings per share was **329,253,984** shares (2024: **317,833,058** shares)[88](index=88&type=chunk) - The share options issued by the company had no dilutive effect on the basic earnings per share for the six months ended June 30, 2025[84](index=84&type=chunk) [Trade Receivables and Payables](index=33&type=section&id=Trade%20Receivables%20and%20Payables) As of June 30, 2025, the net book value of trade receivables was **RMB 225.1 million**, with credit terms typically 30 to 180 days and no significant concentration of credit risk, while trade payables were **RMB 6.656 million**, usually settled within three months and non-interest bearing - The net book value of trade receivables was **RMB 225.1 million**, with credit terms generally ranging from 30 to 180 days, and no significant concentration of credit risk[89](index=89&type=chunk) Trade Receivables Aging Analysis (RMB '000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 148,164 | 92,553 | | 3 to 6 months | 76,874 | 71,601 | | 6 to 12 months | 63 | 60,406 | | Over one year | 1 | 1 | | **Total** | **225,102** | **224,561** | - Trade payables amounted to **RMB 6.656 million**, a **19.9%** decrease from December 31, 2024, typically settled within three months and non-interest bearing[39](index=39&type=chunk)[93](index=93&type=chunk) Trade Payables Aging Analysis (RMB '000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 4,517 | 7,429 | | 3 to 6 months | 1,758 | 510 | | 6 to 12 months | 82 | 83 | | Over one year | 299 | 287 | | **Total** | **6,656** | **8,309** | [Financial Assets](index=34&type=section&id=Financial%20Assets) Financial assets at fair value through profit or loss, primarily unlisted fund investments, amounted to **RMB 72.727 million** as of June 30, 2025, denominated in USD, and mandatorily classified due to contractual cash flows not solely representing principal and interest payments - Financial assets at fair value through profit or loss amounted to **RMB 72.727 million**, primarily consisting of unlisted fund investments[92](index=92&type=chunk) - These investments are denominated in USD and are mandatorily classified as financial assets at fair value through profit or loss because their contractual cash flows do not solely represent payments of principal and interest[92](index=92&type=chunk) [Events After Reporting Period](index=35&type=section&id=Events%20After%20Reporting%20Period) This section details significant events occurring after the reporting period, including share placing and strategic investments, and their intended use of proceeds - On July 24, 2025, the company completed the July placing and subscription, with net proceeds to be used for investments in internet digital center assets, AI technology and applications, Web3.0 business, and working capital[94](index=94&type=chunk)[95](index=95&type=chunk) - On August 6, 2025, the company entered into a share subscription agreement with Lightnet and its founders, agreeing to subscribe for approximately **1.23%** of Lightnet's shares for **USD 5,000,000**, with the transaction not yet completed[95](index=95&type=chunk) [Other Information](index=36&type=section&id=Other%20Information) This section covers interim dividend policy, securities transactions, corporate governance compliance, director's securities trading code, audit committee details, and publication of interim results [Interim Dividend](index=36&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[96](index=96&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and the company held no treasury shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[97](index=97&type=chunk) - As of June 30, 2025, the company held no treasury shares[97](index=97&type=chunk) [Compliance with Corporate Governance Code](index=36&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with all applicable provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Wang Xi, an arrangement the Board believes benefits business strategy formulation and execution efficiency - The company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2025[98](index=98&type=chunk) - The roles of Chairman and Chief Executive Officer are both held by Mr. Wang Xi, an executive director, an arrangement the Board believes is beneficial for business strategy formulation and execution efficiency[98](index=98&type=chunk) [Standard Code for Securities Transactions by Directors](index=37&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors confirmed full compliance with its required standards during the six months ended June 30, 2025 - The company has adopted the Standard Code as the code of conduct for directors' dealings in the company's securities, as set out in Appendix C3 to the Listing Rules[100](index=100&type=chunk) - Following specific inquiries with all directors, all directors confirmed that they fully complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[100](index=100&type=chunk) [Audit Committee](index=37&type=section&id=Audit%20Committee) The Audit Committee, comprising Mr. An Yingchuan (Chairman), Ms. Meng Xue, and Mr. Zhu Jianfeng, is responsible for reviewing financial reporting, internal controls, nominating and overseeing external auditors, and has reviewed the Group's 2025 interim results and financial information, confirming compliance with accounting standards and disclosure requirements - The Audit Committee comprises Mr. An Yingchuan (Chairman), Ms. Meng Xue, and Mr. Zhu Jianfeng[101](index=101&type=chunk) - Its primary responsibilities include reviewing and overseeing the financial reporting process and internal control system, nominating and monitoring external auditors, and providing recommendations on corporate governance-related matters[101](index=101&type=chunk) - The Audit Committee has reviewed the Group's 2025 interim results and financial information, confirming compliance with applicable accounting standards and requirements, and that adequate disclosures have been made[101](index=101&type=chunk) [Publication of Interim Results and Interim Report](index=37&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement has been published on the HKEX and company websites, and the 2025 interim report, containing all information required by the Listing Rules, will be published on both websites in due course - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.easou.cn)[102](index=102&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be published on the HKEX and the company's respective websites in due course[102](index=102&type=chunk) [By Order of the Board](index=37&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Wang Xi, Chairman and Executive Director, with the Board comprising three executive directors (Mr. Wang Xi, Mr. Chen Jun, Mr. Zhao Lei) and three independent non-executive directors (Mr. Zhu Jianfeng, Mr. An Yingchuan, Ms. Meng Xue) as of the announcement date - This announcement is issued by Mr. Wang Xi, Chairman and Executive Director of the Board[103](index=103&type=chunk) - As of the announcement date, the Board comprises executive directors Mr. Wang Xi, Mr. Chen Jun, and Mr. Zhao Lei, and independent non-executive directors Mr. Zhu Jianfeng, Mr. An Yingchuan, and Ms. Meng Xue[103](index=103&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部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。 Ronshine China Holdings Limited 融信中國控股有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：3301） 截至二零二五年六月三十日止六個月 中期業績公告 財務摘要 中期業績 融信中國控股有限公司（「本公司」）董 事（「董 事」）會（「董事會」）謹此公佈本公司 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（「期 內」）之未經 審 核 中 期 合 併 業 績。 – 1 – • 合約銷售額約達人民幣2,108.01百 萬 元，較 截 至 二 零 二 四 年 六 月 三 十 日 止六個月減少約37.30%。 • 總收益約達人民幣2,121.94百 萬 元，較 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個月減少約85.06%。 • 毛利約達人民幣564.56百 ...

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 304,771,000, a decrease of 28.2% compared to RMB 424,240,000 for the same period in 2024[3] - Gross profit for the same period was RMB 125,456,000, down 29.1% from RMB 176,935,000 in 2024[3] - Net profit attributable to equity holders for the six months was RMB 82,789,000, a decline of 31.3% compared to RMB 120,510,000 in the previous year[3] - Basic and diluted earnings per share for the period were RMB 4.99, compared to RMB 7.26 for the same period in 2024[3] - The company reported a significant decline in storage service revenue, which reflects a broader trend in the industry[13] - The company faced a significant decrease in business volume due to adjustments in import material demand from some customers, impacting overall revenue and profit margins[49] - Profit before tax decreased to RMB 109,619 thousand, a reduction of RMB 47,736 thousand or 30.3% compared to the previous year[48] - The total cargo throughput in Chinese ports for the first half of 2025 was 8.903 billion tons, an increase of 4.0% year-on-year[45] Assets and Equity - Total assets as of June 30, 2025, were RMB 3,005,489,000, slightly down from RMB 3,025,820,000 as of December 31, 2024[5] - Total equity as of June 30, 2025, was RMB 2,934,051,000, up from RMB 2,901,064,000 at the end of 2024[6] - The carrying amount of right-of-use assets as of June 30, 2025, was RMB 425,004,000, compared to RMB 434,832,000 as of December 31, 2024[30] - As of June 30, 2025, the company's net book value for port facilities is RMB 269,402,000, down from RMB 271,897,000 at the beginning of the period, reflecting a depreciation of RMB 3,906,000[33] Cash Flow and Investments - Cash and cash equivalents increased to RMB 501,865,000 from RMB 408,067,000 at the end of 2024[5] - The company reported a net cash inflow from operating activities of RMB 167.434 million for the reporting period, compared to RMB 230.996 million in the same period of 2024[70] - The total investment in the Rizhao Port grain base construction project is approximately RMB 1.44 billion, which is expected to support steady growth in the company's main cargo types in the second half of the year[46] - The company is investing approximately RMB 1.44 billion to construct a grain food base at Rizhao Port, which includes the renovation of Berth 6 and is expected to commence operations by the end of 2025[74] Revenue Breakdown - Revenue from service contracts amounted to RMB 264,228,000, down 31.9% from RMB 388,086,000 in the previous year[13] - The breakdown of service revenue includes: loading services at RMB 237,394,000 (down 31.5% from RMB 346,254,000), storage services at RMB 17,799,000 (down 43.7% from RMB 31,567,000), and port management services at RMB 9,035,000 (down 12.0% from RMB 10,265,000)[13] - Major customers contributing over 10% of total revenue included Customer A at RMB 40,604,000 and Customer B at RMB 38,205,000[18] Expenses and Costs - Total employee costs for the six months ended June 30, 2025, amounted to RMB 36,623,000, a decrease of 4.2% from RMB 38,235,000 in the previous year[24] - Selling costs decreased to RMB 179,315 thousand, down 27.5% from RMB 247,305 thousand in 2024, due to improved cost control measures[61] - The company's administrative expenses decreased by 5.5% to RMB 9,809 thousand, down from RMB 10,382 thousand in 2024, reflecting a slight reduction in personnel costs[63] Dividends - The company declared dividends of RMB 49,802,000 during the period[7] - The company declared a final dividend of RMB 49,802,000 for the year 2024, with no interim dividend proposed for the six months ended June 30, 2025[26] - The company has not declared an interim dividend for the six months ending June 30, 2025, compared to no dividend for the same period in 2024[88] Compliance and Governance - The financial statements were prepared in accordance with International Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[9] - The audit committee has reviewed the accounting principles and practices adopted by the company, as well as internal audits, internal controls, and financial reporting matters, including the unaudited interim results for the six months ending June 30, 2025[92] - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors and supervisors during the reporting period[90] Future Outlook - The company anticipates continued challenges in revenue generation due to market conditions and competition in the port services sector[12] - The company aims to enhance its position in the grain business by optimizing unloading, transportation, and storage processes, and building a stable food supply chain[82] - The company is focusing on expanding its grain and wood chip businesses and optimizing its cargo structure to achieve new breakthroughs in revenue generation[83]

[Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) [Profit or Loss Overview](index=1&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8-%E6%A6%82%E8%A6%BD) The Group's revenue grew significantly, but profit for the period declined sharply, resulting in a loss attributable to company owners Key Financial Performance | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 203,267 | 143,434 | +41.7% | | Cost of Sales | (139,776) | (74,380) | +87.9% | | Gross Profit | 63,491 | 69,054 | -8.0% | | Profit for the period | 6,733 | 30,277 | -77.8% | | (Loss)/profit attributable to owners of the Company | (6,013) | 17,613 | From Profit to Loss | | Non-controlling interests | 12,746 | 12,664 | +0.6% | | Basic (loss)/earnings per share (HK cents) | (0.76) | 18.54 | From Profit to Loss | - Revenue growth was primarily driven by contributions from new business segments, but the decline in gross profit and the loss attributable to company owners indicate challenges in profitability[4](index=4&type=chunk)[5](index=5&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) [Comprehensive Income Overview](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8-%E6%A6%82%E8%A6%BD) Total comprehensive income decreased, as positive foreign exchange differences only partially offset the significant drop in profit for the period Comprehensive Income Summary | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Profit for the period | 6,733 | 30,277 | -77.8% | | Exchange differences on translation of foreign operations | 9,658 | (10,920) | From Loss to Gain | | Total comprehensive income for the period | 16,391 | 19,357 | -15.3% | | Total comprehensive (loss)/income attributable to owners of the Company | (833) | 9,513 | From Income to Loss | | Non-controlling interests | 17,224 | 9,844 | +75.0% | - The positive impact of exchange differences did not fully compensate for the decline in profit, leading to a decrease in total comprehensive income and a shift to a loss for company owners[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) [Financial Position Overview](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8-%E6%A6%82%E8%A6%BD) The Group's total assets grew slightly, but widening net current liabilities indicate increased liquidity pressure Key Financial Position Indicators | Indicator | 30 June 2025 (HK$ thousands) | 31 December 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 467,990 | 463,631 | +0.9% | | Current assets | 375,885 | 332,980 | +12.9% | | Current liabilities | 430,688 | 359,408 | +19.8% | | Net current liabilities | (54,803) | (26,428) | Deficit Widened | | Total assets less current liabilities | 413,187 | 437,203 | -5.6% | | Non-current liabilities | 13,147 | 53,554 | -75.5% | | Net assets | 400,040 | 383,649 | +4.3% | | Total equity | 400,040 | 383,649 | +4.3% | - The expansion of net current liabilities suggests significant short-term debt repayment pressure, requiring attention despite a large reduction in non-current liabilities[7](index=7&type=chunk)[8](index=8&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1. General Information](index=6&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Group operates diversified businesses including toys, herbal products, fruit plantation, leisure, and liquor trading - The Group's business is diversified, covering toys and gifts, Chinese herbal medicine, fruit plantation, leisure and cultural investment, and liquor trading[9](index=9&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies and Disclosures](index=6&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E4%B9%8B%E8%AE%8A%E5%8B%95) The Group faces material going concern uncertainties due to net current liabilities, which management is actively addressing through financing measures - The Group faces **material uncertainty regarding its going concern status**, with net current liabilities of **HK$54,803 thousand** and secured borrowings and accrued interest of approximately **HK$67,845 thousand** and **HK$30,650 thousand**, respectively[12](index=12&type=chunk) - Management is actively negotiating settlement/extension with lenders and considering new fundraising activities such as rights issues, open offers, placements, and issuing convertible bonds to improve its financial position[13](index=13&type=chunk)[15](index=15&type=chunk) - The initial application of the amendment to HKAS 21, "Lack of Exchangeability," had no material impact on the financial position or disclosures[14](index=14&type=chunk) [3. Estimates](index=8&type=section&id=3%20%E4%BC%B0%E8%A8%88) The key sources of estimation uncertainty in preparing these financial statements are consistent with those of the 2024 annual report - Management's significant judgments and estimates in financial statement preparation remain consistent with the previous year, though actual results may differ[16](index=16&type=chunk) [4. Segment Information](index=8&type=section&id=4%20%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The new liquor business became a major revenue contributor, while the toys and gifts segment returned to profitability - The Group's seven reportable segments include liquor, Chinese herbal medicine, culture, leisure, fruit plantation, toys and gifts, and exploration, with each business unit managed separately[17](index=17&type=chunk) Segment Results for H1 2025 (HK$ thousands) | Segment | 2025 Revenue | 2024 Revenue | Revenue Change (%) | 2025 Profit/(Loss) | 2024 Profit/(Loss) | Profit Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Toys and gifts | 82,324 | 86,484 | -4.9% | 1,313 | (670) | From Loss to Profit | | Chinese herbal medicine | 42,356 | 56,950 | -25.6% | 16,652 | 25,081 | -33.6% | | Liquor | 78,587 | – | New | 2,652 | – | New | | Fruit plantation | – | – | – | (2,853) | (3,435) | Loss Narrowed | | Leisure | – | – | – | 99 | (440) | From Loss to Profit | | Exploration | – | – | – | – | – | – | | Culture | – | – | – | – | – | – | | **Total** | **203,267** | **143,434** | **+41.7%** | **17,863** | **20,536** | **-13.0%** | Segment Assets as of 30 June 2025 (HK$ thousands) | Segment | 30 June 2025 | 31 December 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Toys and gifts | 213,171 | 213,413 | -0.1% | | Fruit plantation | 126,923 | 125,974 | +0.7% | | Leisure | 93,134 | 89,917 | +3.6% | | Chinese herbal medicine | 326,845 | 295,213 | +10.7% | | Liquor | 25,150 | 22,137 | +13.6% | | Exploration | 2 | 2 | 0% | | Culture | – | – | – | | **Total** | **785,225** | **746,656** | **+5.2%** | Segment Liabilities as of 30 June 2025 (HK$ thousands) | Segment | 30 June 2025 | 31 December 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Toys and gifts | (173,891) | (176,145) | -1.3% | | Fruit plantation | (1,005) | (1,005) | 0% | | Leisure | (17,112) | (16,540) | +3.5% | | Chinese herbal medicine | (11,754) | (5,892) | +99.5% | | Liquor | (22,679) | (22,807) | -0.6% | | Exploration | (91) | (88) | +3.4% | | Culture | – | – | – | | **Total** | **(226,532)** | **(222,477)** | **+1.8%** | [5. Income Tax Expense](index=10&type=section&id=5%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The Group's income tax expense increased during the period, primarily due to a rise in current tax charges - Hong Kong Profits Tax is levied at a two-tiered rate of 8.25% on the first HK$2 million of assessable profits and 16.5% on the remainder, while PRC subsidiaries are taxed at 25%[22](index=22&type=chunk) Income Tax Expense Breakdown | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Current tax - Overseas | 6,643 | 4,201 | | Deferred income tax | (40) | 203 | | **Total income tax expense** | **6,603** | **4,404** | [6. Profit for the Period](index=11&type=section&id=6%20%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period was reached after accounting for various expenses, with notable decreases in amortization and depreciation but increases in staff costs Key Expense Items | Expense Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Amortisation of intangible assets | 195 | 1,362 | -85.7% | | Depreciation of property, plant and equipment | 374 | 2,994 | -87.5% | | Depreciation of right-of-use assets | 1,197 | 371 | +222.6% | | Staff costs (salaries, bonuses and allowances) | 22,896 | 21,914 | +4.5% | | Retirement benefit scheme contributions | 1,685 | 1,534 | +9.8% | | Legal and professional fees | 644 | 1,425 | -54.8% | | Interest expense on borrowings | 1,500 | 1,628 | -7.9% | [7. Dividends](index=11&type=section&id=7%20%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare any interim dividend for the period, consistent with the prior year - The Board decided not to declare an interim dividend for the first half of 2025, same as in H1 2024[25](index=25&type=chunk) [8. (Loss)/Earnings Per Share](index=11&type=section&id=8%20%E6%AF%8F%E8%82%A1%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E2%95%B1%E7%9B%88%E5%88%A9) The company shifted from earnings per share to a loss per share, with basic and diluted calculations being identical due to anti-dilutive effects (Loss)/Earnings Per Share Calculation | Indicator | 2025 (HK$ thousands/thousand shares/HK cents) | 2024 (HK$ thousands/thousand shares/HK cents) | | :--- | :--- | :--- | | (Loss)/profit used for basic and diluted (loss)/earnings per share | (6,013) | 17,613 | | Weighted average number of ordinary shares in issue | 789,325 | 94,999 | | Basic (loss)/earnings per share (HK cents) | (0.76) | 18.54 | | Diluted (loss)/earnings per share (HK cents) | (0.76) | 18.54 | - Basic and diluted loss per share for H1 2025 were both **0.76 HK cents**, primarily due to the loss attributable to the owners of the Company[26](index=26&type=chunk) - The calculation for basic and diluted loss per share yielded the same result for H1 2025 due to the **anti-dilutive effect of convertible bonds**[27](index=27&type=chunk) [9. Property, Plant and Equipment](index=12&type=section&id=9%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) The Group's additions to property, plant, and equipment decreased significantly during the reporting period - Additions to property, plant and equipment for the period amounted to **HK$12 thousand**, a sharp decrease from the prior year[28](index=28&type=chunk) [10. Trade and Bills Receivables](index=12&type=section&id=10%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) Trade and bills receivables increased, with a higher concentration of balances within the 30-day aging bracket Trade and Bills Receivables Breakdown | Indicator | 30 June 2025 (HK$ thousands) | 31 December 2024 (HK$ thousands) | | :--- | :--- | :--- | | Trade receivables — customers | 85,641 | 70,173 | | Less: Provision for credit losses | (19,227) | (18,846) | | Net trade receivables | 66,414 | 51,327 | | Bills receivable | – | 6,102 | | **Total** | **66,414** | **57,429** | Aging Analysis of Net Trade Receivables (HK$ thousands) | Aging | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Within 30 days | 53,105 | 22,844 | | 31 to 90 days | 12,657 | 22,327 | | 91 to 180 days | 652 | 6,156 | | 181 to 360 days | – | – | | Over 360 days | – | – | | **Total** | **66,414** | **51,327** | - Net trade receivables increased, and the significant rise in balances aged within 30 days suggests recent sales growth[29](index=29&type=chunk)[30](index=30&type=chunk) [11. Trade Payables](index=13&type=section&id=11%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E9%A0%85) Total trade payables decreased, with the majority of balances remaining due within 30 days Aging Analysis of Trade Payables (HK$ thousands) | Aging | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Within 30 days | 15,840 | 19,692 | | 31 to 90 days | 3,243 | 2,901 | | 91 to 180 days | 53 | 1,138 | | 181 to 360 days | 14 | 1,841 | | Over 360 days | 2,348 | 1,790 | | **Total** | **21,498** | **27,362** | - Total trade payables decreased, with a high proportion due within 30 days, indicating timely payment management with suppliers[31](index=31&type=chunk) [12. Share Capital](index=14&type=section&id=12%20%E8%82%A1%E6%9C%AC) The company's share capital structure was significantly altered by share consolidation, conversions, and placements, with some shares classified as financial liabilities Share Capital Movement Overview (HK$ thousands/shares) | Item | 30 June 2025 (Shares) | 30 June 2025 (Amount) | 1 January 2024 (Shares) | 1 January 2024 (Amount) | | :--- | :--- | :--- | :--- | :--- | | Authorised share capital | 19,860,570,307 | 1,986,056 | 39,721,140,615 | 1,986,056 | | Issued and fully paid | 789,324,526 | 78,932 | 193,507,544 | 9,675 | | Share consolidation in 2024 | (96,753,772) | – | – | – | | Conversion of convertible bonds | 150,000,000 | 15,000 | – | – | | Placing of shares | 470,000,000 | 47,000 | – | – | | Capitalisation of borrowings in 2024 | 72,570,754 | 7,257 | – | – | | Obligation under share repurchase arrangement | 80,000 | 8 | 80,000 | 8 | - **80,000,000 ordinary shares** were classified as a financial liability instead of equity due to repurchase terms, reflecting a potential liability risk[33](index=33&type=chunk) - Events in 2024, including share consolidation, conversion of convertible bonds, share placements, and capitalisation of borrowings, led to a significant increase in issued share capital[32](index=32&type=chunk)[34](index=34&type=chunk) [13. Related Party Transactions](index=16&type=section&id=13%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) Payments for marketing and other services to a related company increased during the period Related Party Transactions | Transaction Type | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Fees for product development, sales, marketing, and other services paid to a related company | 3,531 | 2,958 | - The increase in related party transaction fees requires scrutiny regarding its reasonableness and impact on the Group's financial performance[35](index=35&type=chunk) [14. Capital Commitments](index=16&type=section&id=14%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) The Group had no significant capital commitments at the end of the reporting period, consistent with the prior year - The Group had **no significant capital commitments** at the end of the reporting period[36](index=36&type=chunk) [15. Contingent Liabilities](index=17&type=section&id=15%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group had no significant contingent liabilities at the end of the reporting period, consistent with the prior year - The Group had **no significant contingent liabilities** at the end of the reporting period[38](index=38&type=chunk) [16. Litigation](index=17&type=section&id=16%20%E8%A8%B4%E8%A8%9F) The company is involved in litigation concerning an outstanding loan and share repurchase, with negotiations currently underway for a resolution - The company is in a lawsuit with Mr Guo Jingsheng regarding an outstanding loan of approximately **HK$13,921 thousand** and related share repurchase terms[39](index=39&type=chunk)[40](index=40&type=chunk) - The company is negotiating to repurchase the shares and settle the outstanding loan amount of approximately **HK$9,538 thousand**[41](index=41&type=chunk) [17. Events After the Reporting Period](index=17&type=section&id=17%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the company entered into a subscription agreement to issue new shares to settle convertible bond obligations - On July 4, 2025, the company signed a subscription agreement to issue **157,800,000 new shares** for a total subscription amount of approximately **HK$68,000 thousand**[42](index=42&type=chunk) - The subscription proceeds will be settled by offsetting the principal of Hubei convertible bonds, and the shares were issued on July 22, 2025[42](index=42&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Financial Review](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's revenue grew substantially, but a loss was recorded for equity holders due to investment losses and reduced segment profits Financial Highlights | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 203.3 | 143.4 | +41.7% | | (Loss)/profit attributable to equity holders of the Company | (6.0) | 17.6 | From Profit to Loss | | Basic (loss)/earnings per share (HK cents) | (0.76) | 18.54 | From Profit to Loss | - Despite significant revenue growth, the profit attributable to equity holders turned into a loss, mainly due to losses from investments in associates, absence of gains on derecognition of financial liabilities, and decreased profit from the Chinese herbal medicine segment[43](index=43&type=chunk) [Business and Operational Review](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E5%8F%8A%E7%87%9F%E9%81%8B%E5%9B%9E%E9%A1%A7) The Group's seven reportable segments showed varied performance, with the new liquor business providing a significant revenue boost - The Group has seven reportable segments: toys and gifts, natural resources exploration, fruit plantation, leisure, culture, Chinese herbal medicine, and liquor[44](index=44&type=chunk) [Toys and Gifts Manufacturing and Sales](index=18&type=section&id=%E7%8E%A9%20%E5%85%B7%20%E5%8F%8A%20%E7%A6%AE%20%E5%93%81%20%E8%A3%BD%20%E9%80%A0%20%E5%8F%8A%20%E9%8A%B7%20%E5%94%AE) The toys and gifts segment returned to profitability driven by a significant improvement in gross profit margin despite a slight revenue decline Toys and Gifts Performance | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 82.3 | 86.5 | | Gross Profit Margin | 57.8% | 42.2% | | Segment Profit/(Loss) | 1.31 | (0.67) | - The improvement in gross profit margin was mainly due to **reduced material costs**, which drove the segment's return to profitability[45](index=45&type=chunk) [Chinese Herbal Medicine](index=19&type=section&id=%E4%B8%AD%20%E8%8D%89%20%E8%97%A5) The Chinese herbal medicine business, focused on decoction services in mainland China, experienced a decline in revenue during the period Chinese Herbal Medicine Performance | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 42.4 | 57.0 | - The year-on-year revenue decline in the Chinese herbal medicine business suggests market competition or internal operational challenges[46](index=46&type=chunk) [Liquor](index=19&type=section&id=%E9%85%92%20%E9%A1%9E) The newly acquired liquor business became a significant contributor to the Group's revenue and profit Liquor Business Performance | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 78.6 | – | | Segment Profit | 2.65 | – | - The liquor business, a new addition this period, contributed **significant revenue and profit**, becoming a new growth driver for the Group[47](index=47&type=chunk) [Natural Resources Exploration](index=19&type=section&id=%E5%A4%A9%20%E7%84%B6%20%E8%B3%87%20%E6%BA%90%20%E5%8B%98%20%E6%8E%A2) The natural resources exploration segment holds substantial coal resources but remains non-cash-generating due to the lack of mining rights - The natural resources exploration business possesses extensive coal resources but is currently unable to generate cash flow due to the **lack of mining rights**, and the investment's carrying value has been fully written down[48](index=48&type=chunk) [Fruit Plantation](index=20&type=section&id=%E6%B0%B4%20%E6%9E%9C%20%E7%A8%AE%20%E6%A4%8D) The commercial development project within the fruit plantation segment has been delayed due to global economic weakness - The commencement date for the commercial development project (hotel casino, residential villas) in the fruit plantation segment has been **postponed to January 2026** due to global economic conditions[49](index=49&type=chunk)[50](index=50&type=chunk) [Leisure](index=20&type=section&id=%E4%BC%91%20%E9%96%92) The leisure segment is adjusting its tea business model amid intense competition and is pursuing legal action to enforce a share transfer - The tea business is facing **intense competition** and is adjusting its business model to adapt to market changes[51](index=51&type=chunk) - The Group is optimistic about the liquor industry's prospects and has invested in yellow wine base liquor[52](index=52&type=chunk) - Legal enforcement procedures for the **20% equity transfer of Anhui Fulao** have been initiated, and the court has issued a freezing order[53](index=53&type=chunk) [Culture](index=21&type=section&id=%E6%96%87%20%E5%8C%96) The culture business segment generated no revenue during the period, consistent with the prior year - The culture business reported **zero revenue** for the period[54](index=54&type=chunk) [Selling and Distribution Costs](index=21&type=section&id=%E9%8A%B7%20%E5%94%AE%20%E5%8F%8A%20%E5%88%86%20%E9%8A%B7%20%E6%88%90%20%E6%9C%AC) Selling and distribution costs increased slightly, primarily driven by the launch of the new liquor business Selling and Distribution Costs | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Selling and distribution costs | 15.0 | 14.8 | - The slight increase in selling and distribution costs is mainly attributable to the commencement of the new liquor business[55](index=55&type=chunk) [Liquidity and Financial Resources](index=22&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's gearing ratio increased as cash balances decreased and borrowings rose, indicating higher financial leverage Key Liquidity Indicators | Indicator | 30 June 2025 (HK$ million) | 31 December 2024 (HK$ million) | | :--- | :--- | :--- | | Bank balances and cash | 117.0 | 135.9 | | Borrowings | 160.2 | 139.4 | | Gearing ratio | 76% | 68% | - A decrease in bank balances and cash, coupled with an increase in borrowings, led to a **higher gearing ratio**, indicating increased financial leverage[56](index=56&type=chunk)[57](index=57&type=chunk) - Approximately **HK$53.0 million** of leasehold land and buildings were pledged as security for other loans[58](index=58&type=chunk) [Deposit Paid for Acquisition of Properties](index=23&type=section&id=%E6%94%B6%E8%B3%BC%E7%89%A9%E6%A5%AD%E5%B7%B2%E4%BB%98%E6%8C%89%E9%87%91) The Group has paid a refundable deposit for the acquisition of an office unit in Beijing to serve as the new headquarters for its liquor segment - A deposit of approximately **HK$48.4 million** has been paid for the acquisition of an office in Beijing, intended as the new headquarters for the liquor segment, with completion expected within the next 12 months[59](index=59&type=chunk) [Business Prospects and Future Plans for Material Investments](index=23&type=section&id=%E6%A5%AD%E5%8B%99%E5%89%8D%E6%99%AF%E5%8F%8A%E6%9C%AA%E4%BE%86%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E8%A8%88%E5%8A%83) The Group is committed to expanding its existing businesses and diversifying its revenue streams by actively seeking profitable investment opportunities - The Group is focused on **business diversification and expansion**, actively seeking profitable investment opportunities to maximize shareholder value[60](index=60&type=chunk) [Capital Structure](index=23&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The company's capital structure consists of ordinary shares and convertible bonds that can be converted into company shares - The company's capital structure includes ordinary shares and convertible bonds, with a total of **789,324,526 shares** in issue[61](index=61&type=chunk) [Employment, Training and Development](index=23&type=section&id=%E5%83%B1%E5%82%AD%E3%80%81%E5%9F%B9%E8%A8%93%E5%8F%8A%E7%99%BC%E5%B1%95) The Group's employee count remained stable, and it continues to offer competitive remuneration and development opportunities Employee Headcount | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Total employees | 368 | 365 | - The Group values employee development, providing training opportunities and competitive compensation packages, with performance-based incentives[62](index=62&type=chunk) [Other Information](index=24&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Use of Proceeds from Placing of Convertible Bonds](index=24&type=section&id=%E9%85%8D%E5%94%AE%E5%8F%AF%E6%8F%9B%E8%82%A1%E5%82%B5%E5%88%B8%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The majority of proceeds from the convertible bond placement have been utilized as planned, with a small balance remaining for its intended purpose Use of Proceeds from Placing of Convertible Bonds (HK$ thousands) | Intended Use | Intended Amount | Amount Utilised | | :--- | :--- | :--- | | Construction of Hubei Chinese herbal medicine planting base | 30,000 | 27,000 | | New production line for traditional Chinese medicine decoction pieces | 10,000 | 10,000 | | General working capital | 4,500 | 4,500 | | **Total** | **44,500** | **41,500** | | Unutilised balance | | 3,000 | - Most of the proceeds have been used as planned for the herbal medicine planting base and production line, with the remaining **HK$3.0 million** to be used for its original purpose[64](index=64&type=chunk) [Corporate Governance Practices](index=24&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company has complied with the Corporate Governance Code, with the exception of one provision regarding director attendance at the AGM - The company complied with the Corporate Governance Code, but several directors were unable to attend the 2025 AGM, deviating from **code provision A.6.7**[65](index=65&type=chunk)[66](index=66&type=chunk) - All directors have confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[67](index=67&type=chunk) - The Audit Committee, composed of independent non-executive directors, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended 30 June 2025[68](index=68&type=chunk) [Purchase, Redemption or Sale of Listed Securities](index=25&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries engaged in any purchase, redemption, or sale of the company's securities during the period - During the period, the company and its subsidiaries did not engage in any purchase, redemption, or sale of its listed securities[69](index=69&type=chunk) [Publication of Interim Results and Interim Report](index=25&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The 2025 interim results announcement has been published, and the interim report will be dispatched to shareholders in due course - The 2025 interim results announcement is available on the websites of the Stock Exchange and the company, and the interim report will be sent to shareholders in due course[70](index=70&type=chunk) [Acknowledgement and Board of Directors](index=26&type=section&id=%E8%87%B4%E8%AC%9D%E5%8F%8A%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) [Acknowledgement](index=26&type=section&id=%E8%87%B4%E8%AC%9D) The Board extends its sincere gratitude to all stakeholders for their continuous support - The Board of Directors expresses its gratitude for the support of all stakeholders[71](index=71&type=chunk) [Board of Directors](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) The Board comprises five executive directors, one non-executive director, and three independent non-executive directors - The Board consists of **5 executive directors**, **1 non-executive director**, and **3 independent non-executive directors**[73](index=73&type=chunk)