Company Information [Company Profile and Disclaimer](index=1&type=section&id=Company%20Profile%20and%20Disclaimer) Loco Hong Kong Holdings Limited (8162), a GEM-listed investment holding company, presents its interim results, including GEM-mandated investment risk disclaimers - Company name is Loco Hong Kong Holdings Limited (Stock Code: 8162), incorporated in Hong Kong, with shares listed on GEM of the Stock Exchange[2](index=2&type=chunk)[4](index=4&type=chunk)[13](index=13&type=chunk) - This announcement is for the interim results for the six months ended June 30, 2025[3](index=3&type=chunk) - The announcement includes disclaimers required by GEM Listing Rules, emphasizing the higher investment risks associated with GEM companies[1](index=1&type=chunk)[4](index=4&type=chunk) Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, Group revenue grew 20.3% to HKD 10,166.1 million, with profit surging 264.5% to HKD 17.4 million, driven by metals business Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the Six Months Ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Revenue | 10,166,072 | 8,451,583 | 20.3% | | Other income | 3,396 | 30 | 11220.0% | | Profit before income tax expense | 24,729 | 9,411 | 162.8% | | Income tax expense | (7,351) | (4,643) | 58.3% | | Profit for the period | 17,378 | 4,768 | 264.5% | | Profit for the period attributable to owners of the Company | 17,378 | 4,768 | 264.5% | | Exchange differences arising from translation of foreign operations | 2,150 | (1,058) | N/A | | Total comprehensive income for the period | 19,528 | 3,710 | 426.4% | | Basic and diluted earnings per share (HK Cents) | 1.78 | 0.58 | 206.9% | - Revenue primarily derived from sales of metals, amounting to **HKD 10,150,481 thousand** in H1 2025, with education management services revenue at **HKD 15,591 thousand**[6](index=6&type=chunk) - Staff costs increased slightly from **HKD 5,984 thousand** in 2024 to **HKD 6,215 thousand** in 2025[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and net assets significantly increased, driven by higher trade receivables and cash and cash equivalents Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, plant and equipment | 2,885 | 3,441 | -16.2% | | Right-of-use assets | 4,339 | 4,421 | -1.8% | | **Current Assets** | | | | | Inventories | 338 | 291 | 16.2% | | Trade and other receivables and prepayments | 2,806,551 | 937,010 | 199.5% | | Cash and cash equivalents | 333,934 | 21,263 | 1470.5% | | **Current Liabilities** | | | | | Trade and other payables and accrued charges | 2,958,134 | 823,602 | 259.2% | | Loans | – | 26,052 | -100.0% | | Contract liabilities | – | 28,249 | -100.0% | | Net current assets | 165,940 | 67,154 | 147.1% | | Net assets | 168,726 | 70,375 | 139.8% | | Share capital | 267,171 | 188,348 | 41.8% | - Trade and other receivables and prepayments significantly increased from **HKD 937,010 thousand** as of December 31, 2024, to **HKD 2,806,551 thousand** as of June 30, 2025[8](index=8&type=chunk) - Cash and cash equivalents significantly increased from **HKD 21,263 thousand** as of December 31, 2024, to **HKD 333,934 thousand** as of June 30, 2025[8](index=8&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, equity attributable to owners significantly increased due to profit, foreign exchange gains, and new share placings Condensed Consolidated Statement of Changes in Equity Key Data (As of June 30) | Indicator | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company | 168,726 | 43,674 | 286.3% | | Share capital | 267,171 | 188,348 | 41.8% | | Accumulated losses | (103,262) | (145,859) | -29.2% | | Profit for the period | 17,378 | 4,768 | 264.5% | | Exchange differences arising from translation of foreign operations | 2,150 | (1,058) | N/A | | Issue of new shares by way of placing | 79,623 | – | N/A | | Transaction costs attributable to issue of shares | (800) | – | N/A | - Share capital increased from **HKD 188,348 thousand** as of January 1, 2024, to **HKD 267,171 thousand** as of June 30, 2025, primarily due to the issue of new shares by way of placing[10](index=10&type=chunk) - Accumulated losses decreased from **HKD (150,627) thousand** as of January 1, 2024, to **HKD (103,262) thousand** as of June 30, 2025[10](index=10&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash from operating activities turned positive, investing cash flow slightly rose, and financing cash flow remained stable, leading to a substantial increase in period-end cash Condensed Consolidated Statement of Cash Flows Key Data (For the Six Months Ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Profit before income tax | 24,729 | 9,411 | 15,318 | | Net cash generated from / (used in) operating activities | 261,095 | (4,199) | 265,294 | | Net cash generated from investing activities | 756 | 11 | 745 | | Net cash generated from financing activities | 51,315 | 54,802 | (3,487) | | Net increase in cash and cash equivalents | 313,166 | 50,614 | 262,552 | | Cash and cash equivalents at end of period | 333,934 | 66,987 | 266,947 | - Net cash generated from operating activities significantly turned from **HKD (4,199) thousand** in H1 2024 to **HKD 261,095 thousand** in H1 2025, mainly due to the net effect of increased trade and other payables and increased trade and other receivables[11](index=11&type=chunk) - Net cash generated from financing activities included net proceeds from placing of new shares of **HKD 79,623 thousand** and repayment of loans of **HKD 26,052 thousand**[12](index=12&type=chunk) Notes to the Financial Statements [General Information](index=9&type=section&id=General%20Information) The Group operates in metals, education management, and money lending, with unaudited interim financial statements in HKD thousands approved on August 29, 2025 - The Company is an investment holding company, with principal businesses including metals business, education management services business, and money lending services business[13](index=13&type=chunk) - The financial statements are presented in **HKD thousands** and were approved and authorized for issue by the directors on August 29, 2025[13](index=13&type=chunk) [Basis of Preparation and Accounting Policies](index=9&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) Financial statements adhere to HKAS 34 and GEM Listing Rules, maintaining consistent accounting policies with 2024, with no material impact from new standards - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the GEM Listing Rules[14](index=14&type=chunk) - The accounting policies used are consistent with those applied in the 2024 annual financial statements, and new or revised Hong Kong Financial Reporting Standards have no material impact on these interim financial statements[14](index=14&type=chunk) - The financial statements are unaudited but have been reviewed by the Company's Audit Committee[15](index=15&type=chunk) [Use of Judgements and Estimates](index=10&type=section&id=Use%20of%20Judgements%20and%20Estimates) Significant management judgements and estimation uncertainties in these interim financial statements are consistent with the 2024 annual financial statements - The significant judgements made by management in applying the accounting policies and the key sources of estimation uncertainty are the same as those applied in the 2024 annual financial statements[16](index=16&type=chunk) [Segment Information](index=10&type=section&id=Segment%20Information) The Group segments its operations into metals, education management, and money lending, each independently managed with distinct products and strategies - The Group's operations are segmented into metals business, education management services, and money lending services as three reportable segments based on business scope[17](index=17&type=chunk)[18](index=18&type=chunk) - Each segment is managed separately due to offering different products and business strategies[17](index=17&type=chunk) [Overview of Business Segments](index=10&type=section&id=Overview%20of%20Business%20Segments) Business segments include metals sales, education management, and money lending, with metals and education services as primary revenue drivers - The metals business primarily involves the sale of metals[18](index=18&type=chunk) - Education management services primarily involve the provision of education management services[18](index=18&type=chunk) - Money lending services primarily involve the provision of money lending services[18](index=18&type=chunk) [Segment Results](index=11&type=section&id=Segment%20Results) H1 2025 saw significant revenue and profit growth in metals, steady growth in education management, and no revenue from money lending Reportable Segment Revenue and Profit / (Loss) (For the Six Months Ended June 30) | Segment | 2025 Revenue (HKD Thousand) | 2024 Revenue (HKD Thousand) | Revenue Growth (%) | 2025 Profit/(Loss) (HKD Thousand) | 2024 Profit/(Loss) (HKD Thousand) | Profit Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Metals Business | 10,150,481 | 8,437,963 | 20.3% | 22,325 | 12,285 | 81.7% | | Education Management Services | 15,591 | 13,620 | 14.5% | 12,249 | 9,895 | 23.8% | | Money Lending Services | – | – | N/A | (75) | (73) | 2.7% | | **Total** | **10,166,072** | **8,451,583** | **20.3%** | **34,499** | **22,107** | **56.0%** | - The metals business is the Group's primary revenue and profit contributor, with H1 2025 revenue reaching **HKD 10,150.5 million** and segment profit of **HKD 22.3 million**[20](index=20&type=chunk) - Unallocated corporate expenses decreased from **HKD 8,102 thousand** in 2024 to **HKD 4,526 thousand** in 2025[24](index=24&type=chunk) [Disaggregation of Revenue](index=12&type=section&id=Disaggregation%20of%20Revenue) Revenue primarily from metals in Singapore and Hong Kong, and education services in Mainland China, recognized at a point in time or over time Revenue Disaggregated by Major Geographical Markets (For the Six Months Ended June 30) | Region | 2025 Metals Business (HKD Thousand) | 2025 Education Management Services (HKD Thousand) | 2024 Metals Business (HKD Thousand) | 2024 Education Management Services (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 2,165,271 | – | 1,050,711 | – | | Mainland China | 6,345 | 15,591 | 7,859 | 13,620 | | Singapore | 7,866,890 | – | 7,272,448 | – | | United Kingdom | 111,975 | – | 106,945 | – | Revenue Disaggregated by Timing of Recognition (For the Six Months Ended June 30) | Timing of Revenue Recognition | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Control transferred over time | 15,591 | 13,620 | | Control transferred at a point in time | 10,150,481 | 8,437,963 | - Singapore is the largest revenue source for the metals business, contributing **HKD 7,866.9 million** in H1 2025[25](index=25&type=chunk) [Finance Costs](index=13&type=section&id=Finance%20Costs) For H1 2025, Group finance costs significantly decreased, primarily due to a substantial reduction in loan interest expenses Finance Costs Composition (For the Six Months Ended June 30) | Category | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Loan interest expense | 38 | 285 | -86.7% | | Interest expense on lease liabilities | 93 | 128 | -27.3% | | **Total** | **131** | **413** | **-68.3%** | - Loan interest expense significantly decreased from **HKD 285 thousand** in 2024 to **HKD 38 thousand** in 2025[27](index=27&type=chunk) [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) For H1 2025, income tax expense increased due to higher current and deferred tax, with stable tax rates in Hong Kong and Mainland China Income Tax Expense Composition (For the Six Months Ended June 30) | Category | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax | 6,886 | 4,643 | 48.3% | | Deferred tax | 465 | – | N/A | | **Income Tax Expense** | **7,351** | **4,643** | **58.3%** | - Hong Kong income tax rate is **16.5%** (with **8.25%** for the first HKD 2 million), and Mainland China subsidiaries' tax rate is **25%**, both consistent with the prior period[29](index=29&type=chunk) [Dividends](index=14&type=section&id=Dividends) The Board does not recommend any dividend payment for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025 (2024: nil)[30](index=30&type=chunk) [Earnings Per Share](index=14&type=section&id=Earnings%20Per%20Share) For H1 2025, basic and diluted earnings per share significantly increased to 1.78 HK cents, driven by higher profit attributable to owners Earnings Per Share Data (For the Six Months Ended June 30) | Indicator | 2025 (HKD Thousand/Thousand Shares/HK Cents) | 2024 (HKD Thousand/Thousand Shares/HK Cents) | Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company | 17,378 | 4,768 | 264.5% | | Weighted average number of ordinary shares (Thousand Shares) | 974,206 | 829,404 | 17.5% | | Basic and diluted earnings per share (HK Cents) | 1.78 | 0.58 | 206.9% | - In H1 2025, diluted earnings per share were the same as basic earnings per share due to the absence of dilutive shares issued[31](index=31&type=chunk) [Trade and Other Receivables and Prepayments](index=15&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, net trade receivables substantially increased, mainly in the 0-30 day aging category, reflecting business growth Trade and Other Receivables and Prepayments (As of June 30) | Category | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables – net | 2,697,083 | 868,108 | 210.7% | | Other receivables and deposits – net | 69,434 | 27,035 | 156.8% | | Prepayments | 40,034 | 41,867 | -4.4% | | **Total** | **2,806,551** | **937,010** | **199.5%** | Trade Receivables Aging Analysis (As of June 30) | Aging | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 2,648,686 | 859,777 | | 31 to 90 days | 48,397 | 7,082 | | 91 to 180 days | – | 1,249 | - Credit terms granted to customers generally range from **1 to 3 months**[33](index=33&type=chunk) [Trade and Other Payables and Accrued Charges](index=16&type=section&id=Trade%20and%20Other%20Payables%20and%20Accrued%20Charges) As of June 30, 2025, trade and other payables and accrued charges significantly increased, mainly in the 0-60 day aging category, consistent with business growth Trade and Other Payables and Accrued Charges (As of June 30) | Category | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 2,945,424 | 818,541 | 260.0% | | Other payables and accrued charges | 12,710 | 5,061 | 151.1% | | **Total** | **2,958,134** | **823,602** | **259.2%** | Trade Payables Aging Analysis (As of June 30) | Aging | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | 0 to 60 days | 2,945,424 | 818,541 | - Credit terms for purchases of goods generally range from **1 to 3 months**[35](index=35&type=chunk) [Related Party Transactions](index=17&type=section&id=Related%20Party%20Transactions) For H1 2025, the Group had no material related party transactions other than key management personnel remuneration - The Group had no other material related party transactions during this reporting period[42](index=42&type=chunk) Key Management Personnel Remuneration (For the Six Months Ended June 30) | Category | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Salaries and short-term employee benefits | 3,474 | 2,904 | 19.6% | | Pension scheme contributions | 36 | 36 | 0.0% | | **Total** | **3,510** | **2,940** | **19.4%** | [Financial Instruments](index=17&type=section&id=Financial%20Instruments) The Group's financial instruments, including cash, receivables, payables, and loans, have carrying amounts approximating fair values due to their short-term nature - The carrying amounts of financial instruments not measured at fair value approximate their fair values due to their short-term nature[39](index=39&type=chunk)[41](index=41&type=chunk) - Fair values of financial assets and liabilities are determined using market quotations or discounted cash flow analysis[43](index=43&type=chunk) Management Discussion and Analysis [Business Review](index=18&type=section&id=Business%20Review) In H1 2025, the Group achieved significant operating revenue and net profit growth by focusing on its core metals business and deepening customer cooperation - The Group's principal businesses (metals business and education management services business) continued to grow steadily[44](index=44&type=chunk) - Despite global economic challenges, strategic emerging industries in China, such as new energy vehicles and photovoltaic equipment, provide structural support for demand for special metals[44](index=44&type=chunk) - The Group adhered to a "seeking progress while maintaining stability" strategy, focusing on the metals business, deepening cooperation with domestic and international customers, strengthening bargaining power, and improving mechanisms to respond to price fluctuations[44](index=44&type=chunk) Overall Financial Performance (For the Six Months Ended June 30) | Indicator | 2025 (HKD Million) | 2024 (HKD Million) | Growth (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 10,166.1 | 8,451.6 | 20.3% | | Net Profit | 17.4 | 4.8 | 262.5% | [Metals Business](index=18&type=section&id=Metals%20Business) The core metals business achieved significant revenue and profit growth in H1 2025, driven by global trade recovery, market opportunities, and product/customer expansion - The metals business is the Group's core segment, encompassing bulk metal commodities and metal consumer goods[45](index=45&type=chunk) - The Group has established a solid cooperation network with large state-owned enterprises, major integrated key enterprises in Mainland China, and international enterprises[45](index=45&type=chunk) Metals Business Segment Performance (For the Six Months Ended June 30) | Indicator | 2025 (HKD Million) | 2024 (HKD Million) | Growth (%) | | :--- | :--- | :--- | :--- | | Segment Revenue | 10,150.5 | 8,438.0 | 20.3% | | Segment Profit | 22.3 | 12.3 | 81.7% | [Product Scope](index=19&type=section&id=Product%20Scope) The metals business covers raw materials and consumer goods, with continuous market review to enrich product scope and diversify business - The metals business primarily supplies raw materials such as copper, aluminum, nickel, and iron ore, as well as metal consumer goods[47](index=47&type=chunk) - The Group will continuously review market conditions, upgrade business scale, enrich product scope, and promote business diversification[47](index=47&type=chunk) [Market Outlook, Development Plans and Strategies](index=19&type=section&id=Market%20Outlook%2C%20Development%20Plans%20and%20Strategies) The metals business has an optimistic outlook, driven by China's manufacturing and new energy demand; the Group will focus on transparent, risk-controlled commodities and expand state-owned enterprise cooperation - China's domestic manufacturing upgrades and new energy industries continue to drive demand in the metals sector, providing long-term support for the metals business development[48](index=48&type=chunk) - The Group will continue to focus on bulk metal commodities and metal consumer goods with relatively transparent international and domestic market prices and controllable risks[49](index=49&type=chunk) - The Group will continue to expand cooperation with large state-owned and major integrated key enterprise customers, adhering to the "seeking progress while maintaining stability" strategy[49](index=49&type=chunk) [Education Management Services Business](index=20&type=section&id=Education%20Management%20Services%20Business) Education management services maintained steady development since 2019, with H1 2025 revenue growth of 14.7%, focusing on arts, sports, and humanities education with stable clients - The education management services business has performed well and maintained steady development since its launch in 2019[50](index=50&type=chunk) - The business focuses on areas encouraged by national education policies, such as arts and sports education and humanities quality education[50](index=50&type=chunk) Education Management Services Business Revenue (For the Six Months Ended June 30) | Indicator | 2025 (HKD Million) | 2024 (HKD Million) | Growth (%) | | :--- | :--- | :--- | :--- | | Segment Revenue | 15.6 | 13.6 | 14.7% | [Key Customers](index=21&type=section&id=Key%20Customers) Education management services serve 9 institutions in Chengdu, including arts/sports training, kindergartens, humanities education, and educational material distributors - Services are primarily provided to **9 educational institutions** in Chengdu, Sichuan Province, Mainland China[51](index=51&type=chunk) - Customers include arts and sports education training institutions, kindergartens, humanities and nature experience education providers, and educational material and book distributors[51](index=51&type=chunk) [Market Outlook, Development Plans and Strategies](index=21&type=section&id=Market%20Outlook%2C%20Development%20Plans%20and%20Strategies) Chengdu's education market offers potential; the Group's education services aim for stable development by adapting to policy changes and optimizing content, addressing uncertainties - Chengdu's education market has significant potential, and the Group will strive to maintain healthy and stable development by closely following policy adjustments and optimizing service content[52](index=52&type=chunk) - The business faces uncertainties from national education policy changes and reforms but has provided services to **9 education-related institutional clients**[52](index=52&type=chunk) [Provision of Money Lending Services](index=21&type=section&id=Provision%20of%20Money%20Lending%20Services) Due to increased global economic uncertainty, the Group deemed credit risk-reward in money lending unacceptable, resulting in no revenue from this segment - The Group believes that the credit risk-reward level in money lending services remains unacceptable in the short term[53](index=53&type=chunk) - As of June 30, 2025, this business segment recorded no revenue (H1 2024: nil)[53](index=53&type=chunk) [Overall Financial Performance](index=22&type=section&id=Overall%20Financial%20Performance) In H1 2025, total revenue grew 20.3% to HKD 10,166.1 million, and profit surged 262.5% to HKD 17.4 million, driven by revenue growth, other income, and reduced expenses Overall Financial Performance (For the Six Months Ended June 30) | Indicator | 2025 (HKD Million) | 2024 (HKD Million) | Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 10,166.1 | 8,451.6 | 20.3% | | Profit | 17.4 | 4.8 | 262.5% | | Profit attributable to owners of the Company | 17.4 | 4.8 | 262.5% | - The increase in profit is primarily attributable to an increase in total revenue of approximately **HKD 1,714.5 million**, an increase in other income of approximately **HKD 3.4 million**, and a decrease in other operating expenses of approximately **HKD 2.4 million**[56](index=56&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=22&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, cash and bank balances significantly increased, net current assets improved, current ratio stable, and zero gearing ratio due to no outstanding loans, indicating ample financial resources Capital Structure and Liquidity (As of June 30) | Indicator | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 333.9 | 21.3 | 1470.5% | | Net current assets | 165.9 | 67.2 | 147.1% | | Current ratio | 1.1 times | 1.1 times | 0.0% | | Outstanding loans | – | 26.1 | -100.0% | | Gearing ratio | Nil | 12.1% | -100.0% | - The increase in cash and bank balances is mainly attributable to profit for the period, an increase in trade and other payables, and net proceeds from the issue of shares[55](index=55&type=chunk) - The Group has no outstanding loans and has not been granted any bank facilities, with directors considering financial resources to be adequate[57](index=57&type=chunk) [Material Investments, Acquisitions and Disposals](index=23&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) For H1 2025, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - The Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during this reporting period[62](index=62&type=chunk) [Placing of New Shares Under General Mandate](index=23&type=section&id=Placing%20of%20New%20Shares%20Under%20General%20Mandate) On January 24, 2025, the Company completed a placing of 165.88 million shares, raising HKD 78.82 million net, used for shareholder loan repayment and metals business development - The Company completed the placing of **165,880,800 ordinary shares** at a placing price of **HKD 0.48 per share** on January 24, 2025[63](index=63&type=chunk) - The net proceeds from the placing, approximately **HKD 78.82 million**, were fully utilized for repayment of shareholder loans (**HKD 26.052 million**) and development of the metals business (**HKD 52.771 million**)[64](index=64&type=chunk) - The placing price represented a discount of approximately **15.79%** to the closing price on the date of the placing agreement and approximately **8.4%** to the average closing price for the preceding five trading days[64](index=64&type=chunk) [Capital Commitments and Capital Expenditures](index=24&type=section&id=Capital%20Commitments%20and%20Capital%20Expenditures) As of June 30, 2025, the Group had no material capital commitments or capital expenditures - The Group had no material capital commitments or capital expenditures as of June 30, 2025[64](index=64&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group faces USD and RMB foreign exchange risk, but USD transaction risk is deemed not material due to the HKD peg, with no hedging policy but close monitoring - The Group is exposed to foreign exchange risk from USD and RMB, primarily arising from overseas receipts and payments of its Hong Kong subsidiaries[65](index=65&type=chunk) - Management considers the currency risk arising from USD transactions not material due to the HKD peg to USD, and currently has no foreign currency hedging policy but will monitor closely[65](index=65&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or pending litigation or claims - The Group had no material contingent liabilities, guarantees, or any pending litigation or claims as of June 30, 2025[66](index=66&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 25 staff with HKD 6.2 million in remuneration, regularly reviewing policies and providing benefits, with discretionary share options and bonuses Employee Headcount and Remuneration (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Employee Headcount | 25 persons | 24 persons | 4.2% | | Total Employee Remuneration (HKD Million) | 6.2 | 6.0 | 3.3% | - The Group provides employees with salaries, medical benefits, and provident funds, with the Board having discretion to grant share options and bonuses[67](index=67&type=chunk) [Dividends](index=25&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[68](index=68&type=chunk) [Events After Reporting Period](index=25&type=section&id=Events%20After%20Reporting%20Period) The Group had no material events after the reporting period - The Group had no material events after the reporting period[69](index=69&type=chunk) Other Information [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=26&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, Executive Director Mr. Zhang Siyuan held 19.39% of shares via his controlled corporation, with no directors or chief executive holding short positions Directors' and Chief Executive's Long Positions (As of June 30, 2025) | Name | Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Zhang Siyuan | Interest in a controlled corporation | 192,980,000 | 19.39% | - As of June 30, 2025, no directors or chief executive held short positions in the shares of the Company or its associated corporations[71](index=71&type=chunk) - The percentage of shareholding is calculated based on **995,284,800 issued shares**[72](index=72&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=27&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, key substantial shareholders included FIAS (HONG KONG) CO., LIMITED (19.39%), Han Bo (7.64%), and Fortune Way Corporation Limited (6.95%) Substantial Shareholders' Long Positions (As of June 30, 2025) | Name/Entity | Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | FIAS (HONG KONG) CO., LIMITED | Beneficial owner | 192,980,000 | 19.39% | | Han Bo | Beneficial owner | 76,000,000 | 7.64% | | Fortune Way Corporation Limited | Beneficial owner | 69,188,882 | 6.95% | - FIAS (HONG KONG) CO., LIMITED is wholly owned by Executive Director Mr. Zhang Siyuan[74](index=74&type=chunk) [Share Option Scheme](index=28&type=section&id=Share%20Option%20Scheme) The Company's share option scheme expired on April 9, 2025, with no options granted, exercised, lapsed, or cancelled during H1 2025 - The last exercise date for share options granted under the share option scheme expired on April 9, 2025[75](index=75&type=chunk) - For the six months ended June 30, 2025, no share options were granted, exercised, lapsed, or cancelled[77](index=77&type=chunk) - As of June 30, 2025, the remaining term for share options granted on April 10, 2015, under the share option scheme was zero[77](index=77&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For H1 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[78](index=78&type=chunk) - As of June 30, 2025, the Company held no treasury shares[78](index=78&type=chunk) [Competing Interests](index=30&type=section&id=Competing%20Interests) For H1 2025, no directors, management, shareholders, or substantial shareholders engaged in competing businesses or had conflicts of interest with the Group - To the best knowledge of the directors, no director, management, shareholder, or substantial shareholder of the Company engaged in any business competing with or having a conflict of interest with the Group's business[79](index=79&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) For H1 2025, the Company complied with GEM Listing Rules' Corporate Governance Code and adopted a code of conduct for directors' securities transactions - The Company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules[80](index=80&type=chunk) - The Company adopted a code of conduct for directors' securities transactions, and all directors confirmed compliance[81](index=81&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee reviews financial reporting, risk management, and internal controls, comprising three independent non-executive directors, with Ms. Wu Liyan as chairperson - The Audit Committee is responsible for reviewing draft annual, interim, and quarterly reports and providing recommendations to the Board[82](index=82&type=chunk) - The committee members include three independent non-executive directors: Ms. Wu Liyan (Chairperson), Mr. Yang Zhenhua, and Mr. Tian Yuan[82](index=82&type=chunk) - The Audit Committee has reviewed this interim results announcement and the financial statements[83](index=83&type=chunk) [Remuneration Committee](index=31&type=section&id=Remuneration%20Committee) The Remuneration Committee advises the Board on remuneration for executive, senior, and independent non-executive directors, chaired by Ms. Wu Liyan - The primary responsibility of the Remuneration Committee is to advise the Board on the remuneration packages for executive directors, senior management, and independent non-executive directors[84](index=84&type=chunk) - The committee members include Mr. Wang Wendong (Executive Director), Ms. Wu Liyan (Chairperson, Independent Non-executive Director), and Mr. Tian Yuan (Independent Non-executive Director)[84](index=84&type=chunk) [Nomination Committee](index=31&type=section&id=Nomination%20Committee) The Nomination Committee advises on director appointments and succession, ensuring board diversity, and is chaired by Mr. Zhang Siyuan, comprising two executive and three independent non-executive directors - The Nomination Committee is primarily responsible for advising the Board on director appointments and succession planning[85](index=85&type=chunk) - The committee strives to ensure a balanced board in terms of skills, experience, and diversity of perspectives[85](index=85&type=chunk) - The committee members include Mr. Zhang Siyuan (Chairperson, Executive Director), Mr. Wang Wendong (Executive Director), and three independent non-executive directors[85](index=85&type=chunk) [Executive Committee](index=32&type=section&id=Executive%20Committee) The Executive Committee oversees strategic plan formulation and subsidiary operations, comprising three executive directors and one independent non-executive director, chaired by Mr. Zhang Siyuan - The Executive Committee is primarily responsible for overseeing the formulation, revision, and execution of the Company's strategic plans and the operations of its subsidiaries[86](index=86&type=chunk) - The committee members include Mr. Zhang Siyuan (Chairperson, Executive Director), Mr. Wang Wendong, Mr. Feng Zhijian (Executive Directors), and Mr. Tian Yuan (Independent Non-executive Director)[86](index=86&type=chunk) [Changes in Directors' Information](index=32&type=section&id=Changes%20in%20Directors'%20Information) Mr. Feng Zhijian was appointed as an independent non-executive director of Huatong Financial Co., Ltd. on March 31, 2025, with no other material changes in directors' information since the 2024 annual report - Mr. Feng Zhijian was appointed as an independent non-executive director of Huatong Financial Co., Ltd. (a NASDAQ-listed company) on March 31, 2025[87](index=87&type=chunk) - Other than the above disclosure, there have been no other changes in directors' information since the publication of the 2024 annual report[87](index=87&type=chunk)

[Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) [Interim Results Summary for the Six Months Ended June 30, 2025](index=1&type=section&id=%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%94%E5%B9%B4%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) The Group reported unaudited condensed consolidated results for the six months ended June 30, 2025, with revenue of approximately **RMB 224.2 million**, gross profit of approximately **RMB 51.7 million**, and a gross profit margin of approximately **23.1%**, turning a loss into a profit attributable to owners of the Company of approximately **RMB 8.8 million** Major Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 224.2 | 182.4 | 22.9% growth | | Gross Profit | 51.7 | 30.5 | 69.5% growth | | Gross Profit Margin | 23.1% | 16.7% | increased by 6.4 percentage points | | Profit (Loss) Attributable to Owners of the Company | 8.8 | (11.6) | turned a loss into a profit | [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue increased to **RMB 224.153 million**, gross profit significantly rose to **RMB 51.651 million**, achieving a gross profit margin of **23.1%**, with a profit before tax of **RMB 7.913 million** and profit attributable to owners of the Company of **RMB 8.787 million**, successfully reversing the loss from the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 224,153 | 182,391 | | Cost of sales | (172,502) | (151,858) | | Gross Profit | 51,651 | 30,533 | | Other income | 2,552 | 5,145 | | Selling and distribution costs | (10,584) | (7,708) | | Administrative and other operating expenses | (35,111) | (33,152) | | Finance costs | (1,404) | (725) | | Profit (loss) before tax | 7,913 | (13,438) | | Income tax expense | (636) | (117) | | Profit (loss) for the period | 7,277 | (13,555) | | Profit (loss) attributable to owners of the Company | 8,787 | (11,627) | | Basic earnings (loss) per share (RMB cents) | 1.56 | (2.06) | [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's non-current assets increased to **RMB 474.907 million**, current assets increased to **RMB 449.560 million**, with net current liabilities of **RMB (198.588) million**, and net assets increased to **RMB 269.610 million**, indicating robust financial growth Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 474,907 | 448,180 | | Current assets | 449,560 | 423,679 | | Current liabilities | 648,148 | 598,508 | | Net current liabilities | (198,588) | (174,829) | | Net assets | 269,610 | 265,967 | | Equity attributable to owners of the Company | 270,679 | 266,426 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [General Information and Basis of Preparation](index=6&type=section&id=%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 investment holding, with the Group mainly involved in designing and manufacturing automated machinery for disposable hygiene products in China; the interim financial statements are prepared on a going concern basis under HKAS 34 and Listing Rules, despite net current liabilities, as directors anticipate sufficient working capital - The Company is incorporated in the Cayman Islands, with shares listed on the Main Board of the Stock Exchange of Hong Kong on **June 3, 2020**[8](index=8&type=chunk) - The Group is principally engaged in the design and manufacture of automated machinery for disposable hygiene products in China[8](index=8&type=chunk) - As of June 30, 2025, the Group recorded **net current liabilities of approximately RMB 198,588,000**, but the directors believe the Group will have sufficient working capital to prepare the financial statements on a going concern basis[12](index=12&type=chunk) [Accounting Policies and Adoption of Standards](index=7&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%BA%96%E5%89%87%E6%8E%A1%E7%B4%8D) The Group has adopted new/revised HKFRSs effective for the current interim period, which have no material impact on the financial position or performance for current and prior periods, and directors anticipate no significant impact from future adoptions - The Group has adopted the amendments to HKAS 21, "Lack of Exchangeability"[14](index=14&type=chunk) - The adoption of new/revised HKFRSs has no material impact on the Group's financial position and performance for the current and prior periods[14](index=14&type=chunk) [Segment Information](index=7&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's management considers the entire business as a single operating segment: designing and manufacturing automated machinery for disposable hygiene products, with revenue primarily from China but significant growth in South Asia and South America, and non-current assets mainly located in mainland China - The Group has only one operating and reportable segment: the design and manufacture of automated machinery for disposable hygiene products[15](index=15&type=chunk) [Geographical Information of Revenue from External Customers](index=8&type=section&id=%E4%BE%86%E8%87%AA%E5%A4%96%E9%83%A8%E5%AE%A2%E6%88%B6%E4%B9%8B%E6%94%B6%E7%9B%8A%E5%9C%B0%E5%8D%80%E5%88%86%E4%BD%88) Geographical Information of Revenue from External Customers (For the six months ended June 30) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China | 97,751 | 109,823 | | Southeast Asia | 47,153 | 54,345 | | South Asia | 40,526 | 33 | | South America | 22,073 | 7,509 | | Central Asia | 6,576 | 10,649 | | East Africa | 5,879 | – | | West Asia | 3,755 | – | | Others | 440 | 32 | | **Total** | **224,153** | **182,391** | - Revenue from the South Asia region significantly increased from **RMB 33 thousand in 2024 to RMB 40,526 thousand in 2025**[17](index=17&type=chunk) - Revenue from South America increased from **RMB 7,509 thousand in 2024 to RMB 22,073 thousand in 2025**[17](index=17&type=chunk) [Geographical Information of Non-current Assets](index=8&type=section&id=%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E5%9C%B0%E5%8D%80%E5%88%86%E4%BD%88) Geographical Information of Non-current Assets (As of June 30) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 472,667 | 445,835 | | Hong Kong | 66 | 171 | | **Total** | **472,733** | **446,006** | [Major Customer Information](index=9&type=section&id=%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E8%B3%87%E6%96%99) Revenue from Major Customers (For the six months ended June 30) | Customer | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer A | 23,725 | – | - In H1 2025, **Customer A contributed RMB 23,725 thousand in revenue**, accounting for over 10% of total revenue, with no such customer in the prior year[20](index=20&type=chunk) [Revenue](index=9&type=section&id=%E6%94%B6%E7%9B%8A) The Group's revenue primarily derives from machinery sales and parts sales, with significant growth in baby diaper and adult diaper machine sales offsetting declines in feminine hygiene napkin and wet wipe machine sales Revenue by Product Type (For the six months ended June 30) | Product Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Baby diapers | 115,800 | 78,121 | | Adult diapers | 81,897 | 61,031 | | Feminine hygiene napkins | 9,401 | 20,605 | | Wet wipes | – | 3,468 | | Parts and components sales | 17,055 | 19,166 | | **Total** | **224,153** | **182,391** | - Sales of baby diaper machines increased by **48.2% year-on-year**, and adult diaper machine sales increased by **34.2% year-on-year**[22](index=22&type=chunk) - Sales of feminine hygiene napkin machines decreased by **54.4% year-on-year**, and wet wipe machine sales decreased by **100% year-on-year**[22](index=22&type=chunk) [Other Income](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for the period was approximately **RMB 2.552 million**, a decrease of approximately **49.0%** from **RMB 5.145 million** in the prior year, mainly due to reduced bond interest income and exchange gains Details of Other Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 184 | 340 | | Interest income from debt instruments measured at amortized cost | – | 1,341 | | Net exchange gain | – | 1,350 | | Government grants | 544 | 380 | | Additional input VAT deduction | 268 | – | | Scrap sales | 731 | 607 | | Others | 825 | 1,127 | | **Total** | **2,552** | **5,145** | - An additional input VAT deduction of **RMB 268 thousand** was recognized in 2025, benefiting from tax incentives for advanced manufacturing enterprises[23](index=23&type=chunk)[24](index=24&type=chunk) [Profit (Loss) Before Tax](index=10&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Profit before tax for the period was **RMB 7.913 million**, compared to a loss of **RMB 13.438 million** in the prior year, with increases in finance costs, staff costs, and research and development expenses [Finance Costs](index=10&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Details of Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 4,366 | 2,334 | | Finance charges on lease liabilities | 181 | 373 | | Less: Interest on bank borrowings capitalized to construction in progress | (3,143) | (1,982) | | **Total** | **1,404** | **725** | - Finance costs increased by approximately **100% year-on-year**, primarily due to increased interest on bank borrowings[23](index=23&type=chunk) [Staff Costs](index=11&type=section&id=%E5%83%B1%E5%93%A1%E6%88%90%E6%9C%AC) Details of Staff Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, allowances, discretionary bonuses and other benefits in kind | 30,680 | 26,901 | | Equity-settled share-based payment expenses | 121 | 280 | | Contributions to defined contribution plans | 5,323 | 3,812 | | **Total** | **36,124** | **30,993** | - Staff costs increased by approximately **16.5% year-on-year**, mainly due to increases in salaries, allowances, and contributions to defined contribution plans[25](index=25&type=chunk) [Other Items](index=11&type=section&id=%E5%85%B6%E4%BB%96%E9%A0%85%E7%9B%AE) Details of Other Items (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 172,502 | 151,858 | | Amortization of intangible assets | 2,095 | 2,703 | | Depreciation of property, plant and equipment (net of capitalization) | 6,376 | 7,550 | | Net exchange loss (gain) | 573 | (1,350) | | Research and development expenses | 15,108 | 13,920 | - Research and development expenses increased by approximately **8.5% year-on-year**, indicating the company's continued investment in technological innovation[25](index=25&type=chunk) - Net exchange differences shifted from a **gain in the prior year to a loss** in the current period[25](index=25&type=chunk) [Income Tax Expense](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the period was approximately **RMB 0.636 million**, a significant increase from **RMB 0.117 million** in the prior year, primarily due to increased taxable profits of the Group's operating subsidiaries in China, with some Chinese entities enjoying preferential tax rates for high-tech enterprises Details of Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC enterprise income tax | 352 | 117 | | Hong Kong profits tax | 284 | – | | **Total** | **636** | **117** | - Jinjiang Haina, Hangzhou Haina, and Jinjiang Haijia are recognized as high-tech enterprises, enjoying a **preferential tax rate of 15%**[27](index=27&type=chunk) - Hong Kong profits tax of **RMB 284 thousand** was incurred in the current period, with none in the prior year[26](index=26&type=chunk)[29](index=29&type=chunk) [Dividends](index=12&type=section&id=%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare an interim dividend for the period, consistent with the prior year - The Board of Directors has resolved not to declare an interim dividend for the period[30](index=30&type=chunk) [Earnings (Loss) Per Share](index=12&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Basic earnings per share for the period was **RMB 1.56 cents**, compared to a loss of **RMB 2.06 cents** per share in the prior year, reflecting an improvement in the company's profitability, with diluted earnings per share being the same as basic earnings per share Calculation of Earnings (Loss) Per Share (For the six months ended June 30) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit (loss) attributable to owners of the Company for the purpose of calculating basic earnings (loss) per share (RMB thousand) | 8,787 | (11,627) | | Weighted average number of ordinary shares for the purpose of calculating basic earnings (loss) per share (thousand shares) | 563,976 | 563,976 | | Basic earnings (loss) per share (RMB cents) | 1.56 | (2.06) | - Diluted earnings (loss) per share is the same as basic earnings (loss) per share, as the exercise of share options would not result in a decrease in basic earnings per share[31](index=31&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) Purchases of property, plant and equipment (excluding right-of-use assets) for the period amounted to approximately **RMB 34.322 million**, while in the prior year, an impairment loss of approximately **RMB 1.705 million** was recognized for the Hangzhou production facility due to intense market competition - Purchases of property, plant and equipment for the period amounted to approximately **RMB 34,322,000**[32](index=32&type=chunk) - Right-of-use assets of approximately **RMB 1,578,000** were recognized during the period[32](index=32&type=chunk) - In the prior period, an impairment loss of approximately **RMB 1,705,000** was recognized for property, plant and equipment of the Hangzhou production facility[33](index=33&type=chunk) [Trade and Other Receivables](index=14&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables increased to **RMB 159.434 million** from **RMB 123.965 million** as of December 31, 2024, driven by significant growth in trade receivables and a reduction in expected credit loss provisions Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (net of provision) | 87,826 | 55,613 | | Bills receivable | 336 | 529 | | Other receivables (net of provision) | 71,272 | 67,823 | | **Total** | **159,434** | **123,965** | [Trade Receivables](index=14&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) - Trade receivables (net of provision for expected credit losses) increased from **RMB 55,613 thousand as of December 31, 2024, to RMB 87,826 thousand as of June 30, 2025**[34](index=34&type=chunk) - Customer retention money increased from **RMB 9,050,000 as of December 31, 2024, to RMB 12,700,000 as of June 30, 2025**[35](index=35&type=chunk) Ageing Analysis of Trade Receivables (by revenue recognition date, net of provision) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 39,565 | 3,278 | | 31 to 60 days | 6,653 | 6,054 | | 61 to 90 days | 1,997 | 4,665 | | 91 to 180 days | 14,917 | 11,273 | | 181 to 365 days | 12,995 | 19,544 | | Over 365 days | 12,035 | 11,328 | | **Total** | **88,162** | **56,142** | [Bills Receivable](index=16&type=section&id=%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) - As of June 30, 2025, bills receivable were **interest-free, guaranteed by Chinese banks, and due within one year**[37](index=37&type=chunk) [Consideration Receivable](index=16&type=section&id=%E6%87%89%E6%94%B6%E4%BB%A3%E5%83%B9) - Consideration receivable represents the final installment payment for the disposal of unlisted equity instruments, with a carrying amount of approximately **RMB 2,280,000 as of June 30, 2025**[38](index=38&type=chunk) [Debt Instruments Measured at Amortized Cost](index=16&type=section&id=%E6%8C%89%E6%94%A4%E9%8A%B7%E6%88%90%E6%9C%AC%E8%A8%88%E9%87%8F%E4%B9%8B%E5%82%B5%E5%8B%99%E5%B7%A5%E5%85%B7) The Group's debt instruments measured at amortized cost were fully provided for expected credit losses as of June 30, 2025, resulting in a zero carrying amount, and the Company has issued legal letters to the issuer and guarantor demanding repayment of outstanding bonds Debt Instruments Measured at Amortized Cost (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted debt instruments, unsecured | 31,912 | 32,810 | | Less: Provision for expected credit losses | (31,912) | (31,939) | | **Net amount** | **–** | **871** | - As of June 30, 2025, the outstanding bond balance was **HKD 35,000,000 (approximately RMB 31,912,000)**[41](index=41&type=chunk) - The Company issued a statutory demand on **August 1, 2025**, requiring the issuer to repay the outstanding principal and accrued interest[42](index=42&type=chunk) [Trade and Other Payables](index=17&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables increased to **RMB 335.127 million** from **RMB 314.015 million** as of December 31, 2024, primarily due to a significant increase in contract liabilities (advances from customers) Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 84,416 | 87,953 | | Bills payable | 49,430 | 37,700 | | Contract liabilities – advances from customers | 129,057 | 95,081 | | Payables for construction in progress | 39,151 | 58,453 | | Accruals and other payables | 25,241 | 23,769 | | **Total** | **335,127** | **314,015** | [Trade Payables](index=17&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) - Trade payables are **interest-free**, and the Group is generally granted a credit period of up to **180 days**[44](index=44&type=chunk) Ageing Analysis of Trade Payables (by date of receipt of goods) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 56,680 | 54,441 | | 31 to 60 days | 7,394 | 10,132 | | 61 to 90 days | 6,086 | 9,865 | | 91 to 180 days | 7,670 | 8,312 | | 181 to 365 days | 2,748 | 2,404 | | Over 365 days | 3,838 | 2,799 | | **Total** | **84,416** | **87,953** | [Accruals and Other Payables](index=18&type=section&id=%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) - Accruals and other payables include approximately **RMB 2,915,000** for payables related to the development of the "5G+ Smart Equipment Operation and Maintenance Service Platform"[46](index=46&type=chunk) [Interest-bearing Borrowings](index=18&type=section&id=%E8%A8%88%E6%81%AF%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total interest-bearing borrowings increased to **RMB 308.737 million** from **RMB 281.037 million** as of December 31, 2024, with most being secured bank loans and variable-rate borrowings Details of Interest-bearing Borrowings (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank loans – unsecured | 6,000 | 6,000 | | Bank loans – secured | 302,737 | 275,037 | | **Total** | **308,737** | **281,037** | Interest-bearing Borrowings by Interest Rate Type (As of June 30) | Interest Rate Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Fixed-rate borrowings | 41,850 | 45,783 | | Variable-rate borrowings | 266,887 | 235,254 | | **Total** | **308,737** | **281,037** | - Secured bank deposits are jointly guaranteed by **land use rights, buildings, construction in progress, restricted bank deposits, and personal guarantees from controlling shareholders**[49](index=49&type=chunk)[52](index=52&type=chunk) [Share Capital](index=20&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's authorized share capital was **2,000,000,000 shares**, with **563,976,000 issued and fully paid shares** at a par value of **HKD 0.01 per share**, equivalent to **RMB 5.088 million**, consistent with December 31, 2024 Share Capital Information (As of June 30) | Item | Number of Shares | HKD | Equivalent RMB thousand | | :--- | :--- | :--- | :--- | | Authorized share capital | 2,000,000,000 | 20,000,000 | 10,695 | | Issued and fully paid share capital | 563,976,000 | 5,639,760 | 5,088 | [Share-based Payments](index=21&type=section&id=%E4%BB%A5%E8%82%A1%E4%BB%BD%E7%82%BA%E5%9F%BA%E7%A4%8E%E7%9A%84%E4%BB%98%E6%AC%BE) Equity-settled share-based payment expenses recognized for the period were approximately **RMB 121,000**, a decrease from **RMB 280,000** in the prior year, with **14,000,000 unexercised share options** and no exercised share options during the period - As of June 30, 2025, the number of **unexercised share options was 14,000,000**[53](index=53&type=chunk) - Equity-settled share-based payment expenses of approximately **RMB 121,000** were recognized during the period (2024: approximately **RMB 280,000**)[53](index=53&type=chunk) [Events After the Reporting Period](index=21&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, Jinjiang Haina faces a civil lawsuit where the plaintiff claims contract payments and damages of approximately **RMB 4.183 million** for the "5G+ Smart Equipment Operation and Maintenance Service Platform" development, but the Board believes no further provision is currently required - Jinjiang Haina was sued by a service provider, claiming unpaid contract payments of approximately **RMB 3,218,000** and damages of approximately **RMB 965,000**[54](index=54&type=chunk) - As of the announcement date, the claim is in its early stages of legal proceedings, and the directors believe no further provision is required[54](index=54&type=chunk) [Business Review](index=22&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Company Overview and Market Environment](index=22&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E6%B3%81%E8%88%87%E5%B8%82%E5%A0%B4%E7%92%B0%E5%A2%83) Haina Intelligent is a seasoned manufacturer of automated machinery for disposable hygiene products in China, achieving steady growth through technological innovation and market expansion, despite a complex domestic and international economic environment, benefiting from China's moderate economic recovery and policy-driven initiatives, and currently operates three production bases in Jinjiang, Hangzhou, and Foshan - The Company is a seasoned manufacturer in China specializing in the design and production of automated machinery for disposable hygiene products, including baby diapers, adult diapers, feminine hygiene napkins, and wet wipes[55](index=55&type=chunk) - The Group operates **three production bases in China**: Jinjiang, Hangzhou, and Foshan, with a total gross floor area of approximately **130,000 square meters**[56](index=56&type=chunk) [Operational Highlights and Technological Innovation](index=23&type=section&id=%E9%81%8B%E7%87%9F%E4%BA%AE%E9%BB%9E%E8%88%87%E6%8A%80%E8%A1%93%E5%89%B5%E6%96%B0) Revenue for the period grew by **22.9% to RMB 224.2 million**, achieving a net profit of **RMB 7.3 million**, as the Group increased investment in overseas markets, expanding its sales network to over **14 countries**, and successfully developed new-generation high-speed intelligent diaper production lines and full-servo pad production lines, significantly enhancing production efficiency and reducing energy consumption - The Group recorded total revenue of approximately **RMB 224.2 million** for the period, an increase of approximately **22.9%** compared to the prior period[57](index=57&type=chunk) - The Group's unaudited net profit after tax for the period was approximately **RMB 7.3 million**, an increase of **RMB 20.8 million** compared to the prior period[57](index=57&type=chunk) - The Group has increased investment and strategic deployment in overseas markets, with its sales network now extending to **over 14 overseas countries**[57](index=57&type=chunk) - Successfully developed a new generation of high-speed intelligent diaper production lines, increasing production speed by nearly **30%** and expecting to reduce unit product energy consumption by nearly **30%**[58](index=58&type=chunk) - Full-servo pad production line capacity significantly increased by nearly **150%**, with expected unit product energy consumption reduction of nearly **60%**[58](index=58&type=chunk) [Sustainable Development](index=23&type=section&id=%E5%8F%AF%E6%8C%81%E7%BA%8C%E7%99%BC%E5%B1%95) The Group prioritizes sustainable development as a core strategy, launching energy-efficient intelligent equipment to reduce customer carbon emissions and actively promoting green factory construction to deepen its digital green transformation - The Group launched **energy-efficient intelligent equipment** to meet customer demand for reducing carbon emissions during production[58](index=58&type=chunk) - The Group actively promotes **green factory construction** and deepens its digital green transformation process[58](index=58&type=chunk) [Outlook and Development Strategies](index=24&type=section&id=%E5%B1%95%E6%9C%9B%E8%88%87%E7%99%BC%E5%B1%95%E7%AD%96%E7%95%A5) Looking ahead to the second half of the year, the disposable hygiene products industry shows promising prospects, and the Group will focus on enhancing R&D efficiency, expanding production capacity, providing integrated solutions, and deeply advancing its global "platformization" strategy to navigate global economic uncertainties and consolidate its market-leading position - The disposable hygiene products industry is expected to continue growing, especially in emerging markets[59](index=59&type=chunk) - The Group will strengthen risk management, optimize supply chain layout, and enhance operational efficiency[64](index=64&type=chunk) [Enhancing R&D Efficiency](index=24&type=section&id=%E6%8F%90%E5%8D%87%E7%A0%94%E7%99%BC%E6%95%88%E8%83%BD) - The main structure of the R&D center has been progressively topped out and is expected to be completed in **H2 2025**, which will enhance the efficiency of new product development[60](index=60&type=chunk) - R&D expenses (including capitalized expenses) of approximately **RMB 15.1 million** were incurred during the period[60](index=60&type=chunk) [Expanding Production Capacity and Integrated Solutions](index=25&type=section&id=%E6%8B%B6%E5%85%85%E7%94%A2%E8%83%BD%E8%88%87%E4%B8%80%E9%AB%94%E5%8C%96%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88) - The new digital factory has been partially delivered and is in the final stages for other areas; once fully operational, it will meet surging customer demand and provide integrated solutions[61](index=61&type=chunk) - The Group will annually increase the **self-sufficiency rate of core components**, optimize its industrial chain layout, and build a specialized, refined, distinctive, and innovative "little giant" enterprise[62](index=62&type=chunk) [Global "Platformization" Strategy](index=25&type=section&id=%E5%85%A8%E7%90%83%E3%80%8C%E5%B9%B3%E5%8F%B0%E5%8C%96%E3%80%8D%E6%88%B0%E7%95%A5) - Emerging markets (Asia, Africa, South America) will serve as **business growth engines**, with increased investment to provide competitive products[63](index=63&type=chunk) - The Group will launch **high-end intelligent equipment** and enhance brand exposure through media advertising and exhibitions[63](index=63&type=chunk) [Financial Review](index=26&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) [Revenue Analysis](index=26&type=section&id=%E6%94%B6%E7%9B%8A%E5%88%86%E6%9E%90) The Group's revenue increased by **22.9%** from **RMB 182.4 million** in the prior year to **RMB 224.2 million** in the current period, primarily driven by increased sales of baby diaper and adult diaper machines, partially offset by reduced sales of feminine hygiene napkin machines, wet wipe machines, and parts and components Revenue by Product Type (For the six months ended June 30) | Product Type | 2025 Units | 2025 (RMB thousand) | 2025 % of Total | 2024 Units | 2024 (RMB thousand) | 2024 % of Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Baby Diaper Machines | 15 | 115,800 | 52% | 11 | 78,121 | 43% | | Adult Diaper Machines | 6 | 81,897 | 37% | 9 | 61,031 | 33% | | Feminine Hygiene Napkin Machines | 2 | 9,401 | 4% | 5 | 20,605 | 11% | | Wet Wipe Machines | – | – | – | 4 | 3,468 | 2% | | Parts and Components | N/A | 17,055 | 7% | N/A | 19,166 | 11% | | **Total** | **23** | **224,153** | **100%** | **29** | **182,391** | **100%** | - A total of **23 machines were sold** in the current period, compared to **29 machines in the prior year**[65](index=65&type=chunk) - As of June 30, 2025, the total value of signed sales contracts was approximately **RMB 428.0 million**, expected to be delivered in **2025 and 2026**[66](index=66&type=chunk) [Gross Profit and Gross Profit Margin](index=27&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) The Group's gross profit increased from **RMB 30.5 million** in the prior year to **RMB 51.7 million** in the current period, with the gross profit margin rising from **16.7% to 23.1%**, primarily due to higher selling prices from upgraded technical configurations and lower prices of major raw materials and components - Gross profit increased by approximately **RMB 21.2 million**, and the gross profit margin increased by approximately **6.4 percentage points**[67](index=67&type=chunk) - The increase in gross profit and gross profit margin was mainly due to **higher selling prices of machines sold** resulting from upgraded technical configurations and **lower prices of major raw materials and components**[67](index=67&type=chunk) [Other Income Analysis](index=27&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Other income for the period was approximately **RMB 2.6 million**, a decrease of approximately **49.0%** from **RMB 5.1 million** in the prior year, mainly due to reduced bond interest income and exchange differences - Other income decreased by approximately **RMB 2.5 million**, primarily due to a decrease in bond interest income and exchange differences during the period[68](index=68&type=chunk) [Selling and Distribution Costs](index=27&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E6%88%90%E6%9C%AC) Selling and distribution costs increased by **37.7%** from **RMB 7.7 million** in the prior year to **RMB 10.6 million** in the current period, mainly due to increased expenses for advertising, professional consulting services, marketing personnel travel, and after-sales service fees - Selling and distribution costs increased by approximately **RMB 2.9 million**, primarily due to increased expenses for advertising and professional consulting services, travel expenses for marketing personnel, and after-sales service fees[69](index=69&type=chunk) [Administrative and Other Operating Expenses](index=27&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF%E5%8F%8A%E5%85%B6%E4%BB%96%E7%87%9F%E9%81%8B%E9%96%8B%E6%94%AF) Administrative and other operating expenses increased by **5.7%** from **RMB 33.2 million** in the prior year to **RMB 35.1 million** in the current period, mainly due to increased research and development expenses, salaries, and welfare benefits - Administrative and other operating expenses increased by approximately **RMB 1.9 million**, primarily due to increased research and development expenses, salaries, and welfare benefits during the period[70](index=70&type=chunk) [Finance Costs](index=27&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for the period were approximately **RMB 1.4 million**, an increase of approximately **100.0%** from **RMB 0.7 million** in the prior year, mainly due to increased interest on bank borrowings - Finance costs increased by approximately **100.0%**, primarily due to increased interest on bank borrowings[71](index=71&type=chunk) [Income Tax Expense](index=28&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the period was approximately **RMB 0.6 million**, a significant increase of approximately **500.0%** from **RMB 0.1 million** in the prior year, mainly due to increased taxable profits of the Group's operating subsidiaries in China - Income tax expense increased by approximately **500.0%**, primarily due to increased taxable profits of the Group's operating subsidiaries in China during the period[72](index=72&type=chunk) [Profit Attributable to Owners of the Company](index=28&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E5%88%A9%E6%BD%A4) Profit attributable to owners of the Company for the period was approximately **RMB 8.8 million**, successfully reversing a loss of approximately **RMB 11.6 million** in the prior year, primarily due to increased gross profit - Profit attributable to owners of the Company was approximately **RMB 8.8 million** (2024: loss of approximately **RMB 11.6 million**)[73](index=73&type=chunk) - The increase in profit was primarily due to **increased gross profit**[73](index=73&type=chunk) [Interim Dividends](index=28&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare an interim dividend for the period - The Board of Directors has resolved not to declare an interim dividend for the period[74](index=74&type=chunk) [Liquidity and Financial Resources](index=28&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 working capital primarily comes from internal resources and interest-bearing borrowings, with the current ratio remaining stable at approximately **0.7 times** as of June 30, 2025, and the Group regularly monitors liquidity needs to ensure sufficient cash reserves - The Group's **current ratio was approximately 0.7 times** as of June 30, 2025 (December 31, 2024: approximately **0.7 times**)[75](index=75&type=chunk) - As of the announcement date, approximately **RMB 35.6 million of outstanding trade receivables** as of June 30, 2025, have been subsequently settled[75](index=75&type=chunk) [Capital Structure and Borrowings](index=28&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B%E8%88%87%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's capital structure included equity of approximately **RMB 269.6 million** and bank borrowings of approximately **RMB 308.7 million**, with bank borrowings increasing from the end of the prior year - The Group's capital structure comprises equity of approximately **RMB 269.6 million** (December 31, 2024: approximately **RMB 266.0 million**) and bank borrowings of approximately **RMB 308.7 million** (December 31, 2024: approximately **RMB 281.0 million**)[77](index=77&type=chunk)[78](index=78&type=chunk) [Gearing Ratio](index=29&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The Group's gearing ratio (total interest-bearing liabilities divided by total equity) was approximately **117.7%** as of June 30, 2025, an increase from **109.0%** as of December 31, 2024 - The Group's **gearing ratio was approximately 117.7%** as of June 30, 2025 (December 31, 2024: approximately **109.0%**)[80](index=80&type=chunk) [Capital Commitments](index=29&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%85) As of June 30, 2025, the Group's total capital expenditure commitments amounted to **RMB 65.857 million**, primarily for construction in progress and development of intangible assets, with the "5G+ Smart Equipment Operation and Maintenance Service Platform" development project having been suspended in 2024 Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contracted but not provided for – construction in progress | 38,178 | 61,261 | | Contracted but not provided for – development of intangible assets | 27,679 | 27,679 | | **Total** | **65,857** | **88,940** | - The development project for the "5G+ Smart Equipment Operation and Maintenance Service Platform" was **suspended in 2024** as the platform's application did not meet expectations[81](index=81&type=chunk) [Contingent Liabilities](index=29&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) Except for the litigation matters disclosed in Note 18 to the financial statements, the Group had no other significant contingent liabilities as of June 30, 2025 - Save as disclosed in Note 18, the Group had no other significant contingent liabilities as of June 30, 2025[82](index=82&type=chunk) [Foreign Exchange Risk Management](index=30&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group's monetary assets, liabilities, and transactions are primarily denominated in RMB, HKD, and USD, and while no difficulties arose from exchange rate fluctuations during the period and no foreign exchange derivative contracts were entered into for hedging, the Group will regularly review and consider using financial instruments as appropriate - The Group's monetary assets, liabilities, and transactions are primarily denominated in **RMB, HKD, and USD**[83](index=83&type=chunk) - The Group did not enter into any foreign exchange derivative contracts to manage currency translation risk during the period[83](index=83&type=chunk) [Human Resources](index=30&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group employed approximately **563 employees**, with staff costs of approximately **RMB 36.1 million**, and remuneration is determined based on performance, experience, and market conditions, with discretionary bonuses provided - As of June 30, 2025, the Group employed a total of approximately **563 employees** in Hong Kong and China (June 30, 2024: approximately **529 employees**)[84](index=84&type=chunk) - Staff costs (including directors' emoluments) for the period were approximately **RMB 36.1 million** (2024: approximately **RMB 31.0 million**)[84](index=84&type=chunk) [Pledge of the Group's Assets](index=30&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) Except for the interest-bearing borrowings pledged as disclosed in Note 15 to the financial statements, the Group had no other assets pledged as of June 30, 2025 - Save as disclosed in Note 15 regarding interest-bearing borrowings, the Group had no other assets pledged as of June 30, 2025[85](index=85&type=chunk) [Material Investments, Acquisitions and Disposals](index=30&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) The Group did not undertake any material investments, acquisitions, or disposals during the period - The Group did not undertake any material investments, material acquisitions, or disposals during the period[86](index=86&type=chunk) [Other Information](index=31&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Future Plans for Material Investments and Capital Assets](index=31&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) The Group plans to establish an R&D center to enhance research efficiency and construct a new digital factory to expand production capacity, improve manufacturing flexibility, and provide integrated solutions, aiming to optimize production line layout, elevate intelligent manufacturing standards, and strengthen global competitive advantages - The R&D center is expected to be completed in **H2 2025**, which will help monitor product development more effectively and shorten the R&D cycle for customized products[87](index=87&type=chunk) - The new digital factory has been partially delivered and, once fully operational, will primarily engage in the design and production of automated machinery for disposable hygiene products, meeting customer demand and supporting expansion plans[88](index=88&type=chunk) - The Group will accelerate technological iteration and process upgrades, annually increasing the **self-sufficiency rate of core components** to replace external procurement models[88](index=88&type=chunk) [Events After the Reporting Period](index=32&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Except for the litigation matters disclosed in Note 18 to the financial statements, no other significant events affecting the Group occurred after the reporting period and up to the announcement date - Save as disclosed in Note 18 to the unaudited condensed consolidated financial statements, no other significant events affecting the Group occurred after the period and up to the date of this announcement[90](index=90&type=chunk) [Corporate Governance](index=32&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group is committed to maintaining high standards of corporate governance, having adopted the code provisions of Appendices C1 and C3 of the Listing Rules, and the Board believes the arrangement of the Chairman and Chief Executive Officer being the same person contributes to efficient strategic planning, with the Audit Committee having reviewed the interim financial information [Compliance with Corporate Governance Code](index=32&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F%E5%AE%88%E5%89%87) - The Company has adopted the applicable code provisions of the Corporate Governance Code set out in **Appendix C1 Part 2 of the Listing Rules**[91](index=91&type=chunk) - The Chairman and Chief Executive Officer are held by Mr. Hong Yiyuan, and the Board believes this arrangement ensures consistent internal leadership and enhances the efficiency of strategic planning[91](index=91&type=chunk) [Compliance with Model Code](index=32&type=section&id=%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in **Appendix C3 of the Listing Rules**, and all directors have confirmed full compliance[92](index=92&type=chunk) [Audit Committee](index=32&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) - The Audit Committee comprises **three independent non-executive directors and one non-executive director**, with Ms. Chan Man Yee as the chairwoman[93](index=93&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial information for the period and believes it has been prepared in accordance with applicable accounting standards and Listing Rules requirements[94](index=94&type=chunk) [Purchase, Sale or Redemption of Shares](index=33&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E8%82%A1%E4%BB%BD) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period, and the Company held no treasury shares as of June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[95](index=95&type=chunk) - As of June 30, 2025, the Company held no treasury shares[95](index=95&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=33&type=section&id=%E5%88%8A%E8%BC%89%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement has been published on the Company's website and the Stock Exchange's website, and the interim report will be dispatched to shareholders and published on the relevant websites in due course - This announcement is published on the Company's website (http://www.haina-intelligent.com) and the Stock Exchange's website (https://www.hkexnews.hk)[96](index=96&type=chunk) [Acknowledgement](index=33&type=section&id=%E8%87%B4%E8%AC%9D) The Board of Directors extends its sincere gratitude to the Group's management and all employees for their efforts and contributions, as well as to shareholders, business partners, and other professionals for their support - The Board of Directors extends its sincere gratitude to the Group's management and all employees, shareholders, business partners, and other professionals[97](index=97&type=chunk) [Board Composition](index=33&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E7%B5%84%E6%88%90) As of the announcement date, the Company's Board of Directors comprises four executive directors, one non-executive director, and three independent non-executive directors, with Mr. Hong Yiyuan serving as Chairman, Chief Executive Officer, and Executive Director - The Company has **four executive directors** (Mr. Hong Yiyuan, Mr. Zhang Zhixiong, Mr. Su Chengya, Mr. He Ziping), **one non-executive director** (Mr. Zheng Zhixiong), and **three independent non-executive directors** (Mr. Chan Ming Kit, Dr. Xia Anjun, Ms. Chan Man Yee)[99](index=99&type=chunk) - Mr. Hong Yiyuan serves as the **Chairman, Chief Executive Officer, and Executive Director**[98](index=98&type=chunk)[99](index=99&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 而產生或因依賴該等內容而引致的任何損失承擔任何責任。 GUANGZHOU AUTOMOBILE GROUP CO., LTD. 廣 州 汽 車 集 團 股 份 有 限 公 司 （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份編號：2238） 二零二五年中期業績公告 重要提示 - 1 - （一）本公司董事會、監事會及董事、監事、高級管理人員保證本公告內容的真實性、準 確性、完整性，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法 律責任。 （二）本公司全體董事出席董事會會議。 （三）本公司簡明合併中期財務資料未經審計。本公司審計委員會已審閱本公司截至2025 年6月30日止六個月的未經審計中期業績，並同意提交董事會審核批准。 （四）本公司負責人馮興亞、主管會計工作負責人王丹及會計機構負責人（會計主管人員） 董亞敏聲明：保證本公告中簡明中期合併財務報表的真實、準確、完整。 （五）本公告涉及的未來計劃、發展戰略 ...

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 會就 本 公 告 全 部 或 任 何部 分 內 容 而 產 生 或因依賴該等內容而引致的任何損失承擔任何責任。 BaWang International (Group) Holding Limited 霸 王 國 際（ 集 團 ）控 股 有 限 公 司 * （ 於開曼群島註冊成立之有限公司） （股份代號：01338） 截至二零二五年六月三十日止六個月之中期業績報告公告 霸王國際（ 集團）控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）謹公 佈本集團（「本集團」或「我們」）及其附屬公司截至二零二五年六月三十日止六 個月之未經審核綜合中期業績，連同去年同期之比較數字。 董事會茲提述本集團日期為二零二五年七月十七日的盈利預警。下文載列 本集團截至二零二五年六月三十日止六個月的未經審核綜合業績概要： 本集團的總收入約人民幣120.1百萬元，較去年同期約人民幣109.8百萬元增 ...

Company Information [Company Overview](index=1&type=section&id=Company%20Overview) Deep Source Holdings Limited (formerly Theme International Holdings Limited) and its subsidiaries primarily engage in the distribution, trading, and processing of commodities, as well as providing securities and derivatives financial services, margin financing, and fund management - The company's name has been changed from 'Theme International Holdings Limited' to 'Deep Source Holdings Limited', and its Chinese name from '榮暉國際集團有限公司' to '至源控股有限公司'[2](index=2&type=chunk)[80](index=80&type=chunk) - Principal businesses include the distribution, trading, and processing of commodities and related products in Hong Kong, Singapore, and China, as well as providing securities and derivatives financial services, margin financing, and fund management in Hong Kong and Singapore[65](index=65&type=chunk) [Board of Directors and Management](index=40&type=section&id=Board%20of%20Directors%20and%20Management) The Board of Directors comprises two executive directors, two non-executive directors, and three independent non-executive directors, with Mr. Wu Lei, an executive director, temporarily serving as Chairman, and Mr. Jiang Jiang as Chief Executive Officer - The Board of Directors consists of Mr. Jiang Jiang (Executive Director), Mr. Wu Lei (Executive Director), Mr. Ding Lin (Non-Executive Director), Mr. Kang Jian (Non-Executive Director), Mr. Liu Song (Independent Non-Executive Director), Ms. Chen Liping (Independent Non-Executive Director), and Mr. Huang Xuebin (Independent Non-Executive Director)[116](index=116&type=chunk) - The position of Chairman has been vacant since **April 1, 2016**, and is currently temporarily held by Executive Director Mr. Wu Lei, with Mr. Jiang Jiang serving as Chief Executive Officer[109](index=109&type=chunk) Financial Performance [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue significantly decreased by **62%** to **HKD 10,132,488 thousand**, but profit for the period increased by **19.6%** year-on-year to **HKD 369,906 thousand**, primarily due to increased other income and profit contributions from associates **Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30)** | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 10,132,488 | 26,582,474 | -61.9% | | Cost of Sales | (9,761,575) | (25,957,389) | -62.4% | | Gross Profit | 370,913 | 625,085 | -40.7% | | Other Income, Gains and Losses | 56,409 | (146,662) | significant improvement | | Profit from Operations | 273,020 | 291,910 | -6.5% | | Share of Profit of Associates | 140,354 | 64,811 | +116.5% | | Profit Before Tax | 404,509 | 342,084 | +18.2% | | Profit for the Period | 369,906 | 309,184 | +19.6% | | Profit Attributable to Owners of the Company | 321,849 | 294,374 | +9.3% | | Basic and Diluted Earnings Per Share | HKD 2.39 cents | HKD 2.19 cents | +9.1% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets both increased, with a rise in net current assets, indicating a sound financial position **Summary of Condensed Consolidated Statement of Financial Position (As of June 30)** | Metric | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 2,812,412 | 2,690,320 | +4.5% | | Current Assets | 16,829,592 | 16,286,472 | +3.3% | | Current Liabilities | 11,593,095 | 11,725,820 | -1.1% | | Net Current Assets | 5,236,497 | 4,560,652 | +14.8% | | Net Assets | 8,034,727 | 7,236,287 | +11.0% | | Equity Attributable to Owners of the Company | 6,927,261 | 6,115,522 | +13.3% | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity increased to **HKD 8,034,727 thousand**, primarily due to profit for the period, a positive shift in foreign currency translation reserve, and new share issuance **Summary of Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30)** | Metric | June 30, 2025 (HKD Thousand) | January 1, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Total Equity (End of Period) | 8,034,727 | 7,269,828 | +764,899 | | Equity Attributable to Owners of the Company (End of Period) | 6,927,261 | 6,198,499 | +728,762 | | Profit for the Period (Attributable to Owners of the Company) | 321,849 | 294,374 | +27,475 | | Total Comprehensive Income for the Period | 446,025 | 248,002 | +198,023 | | Issue of New Shares | 407,400 | — | +407,400 | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly decreased, but net cash used in financing activities also decreased, resulting in an increase in cash and cash equivalents at the end of the period **Summary of Condensed Consolidated Statement of Cash Flows (For the six months ended June 30)** | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Net Cash From Operating Activities | 2,379,324 | 4,357,075 | -1,977,751 | | Net Cash Used In Investing Activities | (44,956) | (692,699) | +647,743 | | Net Cash Used In Financing Activities | (1,135,956) | (2,056,305) | +920,349 | | Net Increase in Cash and Cash Equivalents | 1,198,412 | 1,608,071 | -409,659 | | Cash and Cash Equivalents at End of Period | 3,374,678 | 4,276,608 | -901,930 | Notes to the Financial Statements [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and are consistent with the accounting policies and methods of computation used in the 2024 annual financial statements, with no significant changes resulting from new or revised HKFRSs adopted in the current period - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and should be read in conjunction with the **2024** annual financial statements[9](index=9&type=chunk) - The accounting policies and methods of computation used in the preparation are consistent with those used in the annual financial statements for the year ended **December 31, 2024**[9](index=9&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards in the current period did not result in significant changes to accounting policies, presentation, or amounts reported in the financial statements[14](index=14&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from sales of goods trading and processing, and financial services commission income; segment information indicates a significant decrease in revenue from distribution, trading, and processing, while financial services revenue slightly declined [Revenue Analysis](index=8&type=section&id=Revenue%20Analysis) For the six months ended June 30, 2025, total revenue from contracts with customers was **HKD 9,876,585 thousand**, with sales of goods trading and processing accounting for the vast majority, but significantly lower than the prior period **Revenue Analysis (For the six months ended June 30)** | Source of Revenue | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Sales of Goods Trading and Processing | 9,742,731 | 26,163,372 | -62.8% | | Commission Income and Brokerage Fees from Financial Services | 139,469 | 144,944 | -3.8% | | Total Revenue from Contracts with Customers | 9,876,585 | 26,301,977 | -62.5% | | Other Income (Gains from Derivative Transactions, Interest Income) | 255,903 | 280,497 | -8.7% | | Total Revenue | 10,132,488 | 26,582,474 | -61.9% | [Segment Results and Assets and Liabilities](index=9&type=section&id=Segment%20Results%20and%20Assets%20and%20Liabilities) Both revenue and profit for the Distribution, Trading, and Processing segment significantly decreased, while the Financial Services segment saw substantial profit growth, partially offsetting the overall revenue decline **Segment Results (For the six months ended June 30)** | Segment | 2025 Revenue (HKD Thousand) | 2024 Revenue (HKD Thousand) | 2025 Segment Profit (HKD Thousand) | 2024 Segment Profit (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Distribution, Trading and Processing | 9,737,116 | 26,157,033 | 132,980 | 244,030 | | Financial Services | 395,372 | 425,441 | 159,942 | 63,387 | | Total | 10,132,488 | 26,582,474 | 292,922 | 307,417 | **Segment Assets and Liabilities (As of June 30)** | Segment | June 30, 2025 Segment Assets (HKD Thousand) | December 31, 2024 Segment Assets (HKD Thousand) | June 30, 2025 Segment Liabilities (HKD Thousand) | December 31, 2024 Segment Liabilities (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Distribution, Trading and Processing | 8,278,945 | 8,103,710 | 4,402,329 | 4,152,062 | | Financial Services | 8,379,663 | 8,408,809 | 6,154,449 | 6,234,034 | | Total | 16,658,608 | 16,512,519 | 10,556,778 | 10,386,096 | [Geographical and Product Revenue](index=11&type=section&id=Geographical%20and%20Product%20Revenue) Revenue from contracts with customers in Singapore significantly decreased, primarily due to reduced silver and gold bullion trading, while China's revenue slightly declined and Hong Kong's revenue increased **Revenue from Contracts with Customers by Geographical Market (For the six months ended June 30)** | Geographical Market | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 139,003 | 117,533 | +18.3% | | Singapore | 2,762,721 | 18,626,186 | -85.2% | | China | 6,974,861 | 7,558,258 | -7.7% | | Total Revenue from Contracts with Customers | 9,876,585 | 26,301,977 | -62.5% | **Revenue from Contracts with Customers by Major Product/Service (For the six months ended June 30)** | Major Product/Service | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Trading and Processing of Commodities | 9,737,116 | 26,157,033 | -62.8% | | Commission Income and Brokerage Fees | 139,469 | 144,944 | -3.8% | | Total | 9,876,585 | 26,301,977 | -62.5% | [Items in Profit Before Tax](index=12&type=section&id=Items%20in%20Profit%20Before%20Tax) For the six months ended June 30, 2025, both finance costs and interest income from bank deposits decreased, while losses from fair value changes of financial assets at fair value through profit or loss increased; notably, no provision for losses due to alleged misappropriation of funds was made this period, unlike a significant provision in the prior period **Items Deducted From / (Credited To) Profit Before Tax (For the six months ended June 30)** | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Finance Costs | 8,865 | 14,637 | -5,772 | | Interest Income from Bank Deposits | (38,017) | (55,960) | +17,943 | | Losses from Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 13,405 | 5,363 | +8,042 | | Depreciation (Property, Plant and Equipment) | 9,386 | 8,176 | +1,210 | | Depreciation (Right-of-use Assets) | 6,001 | 7,309 | -1,308 | | Provision for Losses Due to Alleged Misappropriation of Funds | — | 167,660 | -167,660 | | Exchange (Gains) / Losses, Net | (4,717) | 36,007 | significant improvement | | Directors' Remuneration | 3,040 | 3,440 | -400 | | Other Staff Costs | 92,687 | 105,468 | -12,781 | [Income Tax](index=13&type=section&id=Income%20Tax) Current period income tax expense slightly increased, mainly from China corporate income tax and Singapore corporate income tax; the company applies different tax policies in Hong Kong, Singapore, and China, including Singapore's Global Trader Programme (GTP) preferential tax rate and China's small-profit enterprise tax reduction **Income Tax Expense (For the six months ended June 30)** | Tax Type | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Hong Kong Profits Tax | 649 | 75 | +574 | | China Corporate Income Tax | 16,163 | 9,319 | +6,844 | | Singapore Corporate Income Tax | 17,791 | 23,506 | -5,715 | | Total | 34,603 | 32,900 | +1,703 | - Singapore subsidiary Bright Point Trading Pte. Ltd. benefits from the Global Trader Programme (GTP) incentive, with a portion of eligible income taxed at a preferential rate of **5%**[26](index=26&type=chunk) - Income tax provision for China operations is calculated at a **25%** tax rate, except for small-profit enterprises which enjoy tax reductions[26](index=26&type=chunk) [Earnings Per Share](index=14&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were **HKD 2.39 cents**, an increase from the prior period; basic and diluted earnings per share are equal as no potentially dilutive shares were issued **Earnings Per Share (For the six months ended June 30)** | Metric | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HKD Thousand) | 321,849 | 294,374 | +9.3% | | Weighted Average Number of Ordinary Shares (Thousands) | 13,484,853 | 13,471,345 | +0.1% | | Basic and Diluted Earnings Per Share | HKD 2.39 cents | HKD 2.19 cents | +9.1% | [Dividends](index=14&type=section&id=Dividends) The Board does not recommend an interim dividend for the period ended June 30, 2025, consistent with the prior period - The Directors do not recommend an interim dividend for the period ended **June 30, 2025** (**2024**: nil)[31](index=31&type=chunk) [Notes to the Statement of Financial Position](index=15&type=section&id=Notes%20to%20the%20Statement%20of%20Financial%20Position) This section details the changes and composition of major balance sheet items as of June 30, 2025, including property, plant and equipment, investments in associates, inventories, various receivables, derivative instruments, cash and bank balances, and various payables [Property, Plant and Equipment](index=15&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired property, plant and equipment totaling approximately **HKD 9,698 thousand**, a significant increase from the prior period - For the six months ended **June 30, 2025**, the Group acquired property, plant and equipment of approximately **HKD 9,698,000**, compared to **HKD 1,452,000** in the prior period[33](index=33&type=chunk) [Investments in Associates](index=15&type=section&id=Investments%20in%20Associates) As of June 30, 2025, the company's equity in associates increased to **HKD 2,512,137 thousand**, primarily invested in mineral trading and processing, investment holding, and other businesses in China and Singapore **Investments in Associates (As of June 30)** | Region | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | In China | 544,004 | 526,104 | +17,900 | | In Singapore | 1,968,133 | 1,841,805 | +126,328 | | Total | 2,512,137 | 2,367,909 | +144,228 | - Key associates include Lianyungang Hengxintong Mining Co., Ltd. (China, bulk mineral trading and processing, **30%** stake), Green Esteel Pte. Ltd. (Singapore, investment holding and iron ore and hot briquetted iron trading, **20.2%** stake), and Shandong Energy Group Ronghui International Trading Co., Ltd. (China, bulk mineral trading, commodity import and export, **49%** stake)[35](index=35&type=chunk) [Inventories](index=15&type=section&id=Inventories) As of June 30, 2025, total inventories significantly decreased to **HKD 1,915,146 thousand**, primarily due to a reduction in finished goods inventory **Inventories (As of June 30)** | Inventory Category | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Raw Materials | 11,930 | 33,288 | -21,358 | | Finished Goods | 1,903,216 | 3,602,063 | -1,698,847 | | Total | 1,915,146 | 3,635,351 | -1,720,205 | [Trade and Bills Receivables](index=16&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, trade and bills receivables increased to **HKD 2,754,077 thousand**, primarily concentrated within the 90-day aging period **Trade and Bills Receivables (As of June 30)** | Aging | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | 0 to 90 days | 2,610,096 | 2,330,160 | +279,936 | | 91 to 180 days | 134,909 | 3,941 | +130,968 | | Over 180 days | 9,072 | 10,582 | -1,510 | | Total | 2,754,077 | 2,344,683 | +409,394 | - The average credit period is **30 to 90 days**, with no bad debt provisions made during the period or at the end of the reporting period[37](index=37&type=chunk)[38](index=38&type=chunk) [Accounts Receivable](index=17&type=section&id=Accounts%20Receivable) As of June 30, 2025, total accounts receivable increased to **HKD 3,392,892 thousand**, primarily from brokers and dealers and company balances in futures contract trading business **Accounts Receivable (As of June 30)** | Source | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | From Futures Contract Trading Business | 3,390,463 | 2,874,357 | +516,106 | | From Providing Financial Services - Clients | 2,429 | 21,405 | -18,976 | | Total | 3,392,892 | 2,895,762 | +497,130 | - Receivables from brokers and dealers are current and repayable on demand[39](index=39&type=chunk) [Derivative Instruments](index=17&type=section&id=Derivative%20Instruments) As of June 30, 2025, both the notional amounts and fair values of derivative assets and liabilities significantly increased, reflecting expanded futures contract trading activities **Derivative Instruments (As of June 30)** | Item | June 30, 2025 Contract/Notional Amount (HKD Thousand) | June 30, 2025 Assets (HKD Thousand) | June 30, 2025 Liabilities (HKD Thousand) | December 31, 2024 Contract/Notional Amount (HKD Thousand) | December 31, 2024 Assets (HKD Thousand) | December 31, 2024 Liabilities (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Futures Contracts - Sell | 19,024,202 | 216,979 | (383,322) | 10,838,250 | 115,900 | (269,763) | | Futures Contracts - Buy | 15,892,496 | 331,205 | (241,321) | 9,890,571 | 299,865 | (127,634) | | Total Derivatives | — | 548,184 | (624,643) | — | 415,765 | (397,397) | [Prepayments, Deposits and Other Receivables](index=18&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, total prepayments, deposits, and other receivables increased to **HKD 763,445 thousand**, primarily due to a significant rise in trade deposits **Prepayments, Deposits and Other Receivables (As of June 30)** | Item | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Trade Deposits | 595,115 | 191,811 | +403,304 | | VAT Recoverable | 68,426 | 313,637 | -245,211 | | Prepayments, Deposits and Other Receivables | 99,904 | 89,379 | +10,525 | | Total | 763,445 | 594,827 | +168,618 | [Cash and Bank Balances](index=18&type=section&id=Cash%20and%20Bank%20Balances) As of June 30, 2025, total cash and bank balances increased to **HKD 7,416,768 thousand**, with a significant increase in cash in general accounts **Cash and Bank Balances (As of June 30)** | Item | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Cash at Bank - General Accounts | 3,374,678 | 2,165,073 | +1,209,605 | | Cash at Bank - Restricted Deposits | 583,596 | 582,129 | +1,467 | | Cash at Bank - Trust and Segregated Accounts | 3,458,494 | 3,649,060 | -190,566 | | Total | 7,416,768 | 6,396,262 | +1,020,506 | - Restricted bank deposits primarily serve as collateral for bills payable and bank financing[42](index=42&type=chunk) - Trust and segregated accounts hold client funds, which the Group is not permitted to use to settle its own liabilities[42](index=42&type=chunk) [Trade and Bills Payables](index=19&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables increased to **HKD 4,106,373 thousand**, with a significant increase in amounts aged **91 to 180 days** **Trade and Bills Payables (As of June 30)** | Aging | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Within 90 days | 2,969,603 | 3,311,406 | -341,803 | | 91 to 180 days | 1,108,570 | 542,048 | +566,522 | | 181 to 365 days | 25,725 | 11,364 | +14,361 | | Over one year | 2,475 | 5,283 | -2,808 | | Total | 4,106,373 | 3,870,101 | +236,272 | [Accounts Payable](index=19&type=section&id=Accounts%20Payable) As of June 30, 2025, accounts payable from futures contract trading business amounted to **HKD 5,467,849 thousand**, a decrease from year-end, primarily representing client margin deposits **Accounts Payable (As of June 30)** | Source | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | From Futures Contract Trading Business | 5,467,849 | 5,775,864 | -308,015 | - Accounts payable primarily represent client margin deposits for futures contract trading, repayable upon contract closure[44](index=44&type=chunk) [Amount Due to an Associate](index=19&type=section&id=Amount%20Due%20to%20an%20Associate) As of June 30, 2025, the amount due to an associate was **HKD 780,000 thousand**, a significant decrease from year-end, and is unsecured, interest-free, and repayable within one year **Amount Due to an Associate (As of June 30)** | Item | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Amount Due to an Associate | 780,000 | 1,141,920 | -361,920 | - This amount is unsecured, interest-free, and repayable within one year[45](index=45&type=chunk) [Share Capital](index=20&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital increased due to the issuance of new shares under general mandate, reaching a total of **14,286,345 thousand shares** **Changes in Share Capital (As of June 30)** | Item | Number of Ordinary Shares (Thousands) | Share Capital (HKD Thousand) | | :--- | :--- | :--- | | As at January 1, 2024 and December 31, 2024 | 13,471,345 | 33,679 | | Issue of New Shares under General Mandate | 815,000 | 2,037 | | As at June 30, 2025 | 14,286,345 | 35,716 | - On **June 13, 2025**, the company entered into subscription agreements with no less than **6** independent third parties to issue **815,000,000** new shares at **HKD 0.5** per share, for a total consideration of approximately **HKD 407,500,000**, with net proceeds of approximately **HKD 407,400,000**[48](index=48&type=chunk) [Related Party Transactions](index=20&type=section&id=Related%20Party%20Transactions) The Group engaged in various related party transactions, including key management personnel compensation, amounts due from/to related parties, brokerage and commission income, and trading commodity sales and purchases **Key Management Personnel Compensation (For the six months ended June 30)** | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Salaries, Allowances and Other Benefits in Kind | 2,940 | 3,360 | -420 | | Retirement Benefit Scheme Contributions | 100 | 80 | +20 | | Total | 3,040 | 3,440 | -400 | - Amounts due from/to related parties arose in the ordinary course of business and are determined on terms similar to those offered to third-party customers[50](index=50&type=chunk) - Brokerage and commission income, and trading commodity sales and purchase transactions from related parties, are determined at commission rates similar to those offered to third-party customers[51](index=51&type=chunk) [Fair Value Measurement](index=23&type=section&id=Fair%20Value%20Measurement) The Group's financial assets and liabilities are measured at fair value, primarily categorized into Level 1 and Level 3 inputs; as of June 30, 2025, total recurring fair value measurements amounted to **HKD 49,151 thousand** **Fair Value Hierarchy Disclosure (As of June 30, 2025)** | Description | Level 1 (HKD Thousand) | Level 2 (HKD Thousand) | Level 3 (HKD Thousand) | Total (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Other Comprehensive Income (Private Equity Investments) | — | — | 20,153 | 20,153 | | Financial Assets at Fair Value Through Profit or Loss (Listed Securities) | 38,704 | — | — | 38,704 | | Financial Assets at Fair Value Through Profit or Loss (Unlisted Funds) | — | — | 66,753 | 66,753 | | Derivative Instruments - Assets | 548,184 | — | — | 548,184 | | Derivative Instruments - Liabilities | (624,643) | — | — | (624,643) | | Total Recurring Fair Value Measurements | (37,755) | — | 86,906 | 49,151 | - Level 3 fair value measurements use the market approach (guideline transaction method) for unlisted equity securities and the net asset method for unlisted funds[59](index=59&type=chunk) - There were no transfers between Level 1 and Level 2, nor into or out of Level 3 during the period[56](index=56&type=chunk) [Capital Commitments](index=27&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no significant capital commitments - As of **June 30, 2025**, the Group had no significant capital commitments (**December 31, 2024**: nil)[61](index=61&type=chunk) [Events After Reporting Period](index=27&type=section&id=Events%20After%20Reporting%20Period) Subsequent to the reporting period, the company's name was changed; additionally, the company entered into two memoranda of understanding and one sale and purchase agreement to acquire a **60%** interest in an Indonesian nickel mining company and a **60%** equity stake in a Chinese enterprise management consulting company - In **July 2025**, the company's name was changed from 'Theme International Holdings Limited' to 'Deep Source Holdings Limited', and its Chinese name from '榮暉國際集團有限公司' to '至源控股有限公司'[62](index=62&type=chunk) - In **August 2025**, the company entered into a memorandum of understanding to acquire a **60%** interest in PT Aneka Tambang Resources Indonesia, an Indonesian company holding nickel commodity mining permits, for **USD 9,900,000**[62](index=62&type=chunk) - On **August 26, 2025**, the company entered into a sale and purchase agreement to conditionally acquire a **60%** equity interest in Anhui Chujiang Hengchuang Enterprise Management Consulting Co., Ltd. for **RMB 900 million**[63](index=63&type=chunk) [Approval of Condensed Consolidated Financial Statements](index=27&type=section&id=Approval%20of%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025 - The condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on **August 29, 2025**[64](index=64&type=chunk) Management Discussion and Analysis and Other Information [Business Overview](index=28&type=section&id=Business%20Overview) Deep Source Holdings Limited primarily engages in the distribution, trading, and processing of commodities, as well as providing securities and derivatives financial services, margin financing, and fund management - The Group primarily engages in the distribution, trading, and processing of commodities and related products in Hong Kong, Singapore, and China; and provides securities and derivatives financial services, margin financing, and fund management in Hong Kong and Singapore[65](index=65&type=chunk) [Financial and Business Review](index=28&type=section&id=Financial%20and%20Business%20Review) For the six months ended June 30, 2025, the Group's total revenue decreased by **62%** year-on-year, mainly due to reduced activity in the distribution, trading, and processing business, particularly silver and gold bullion trading; despite the revenue decline, profit for the period increased by **19.6%** due to improved other income and increased profit from associates **Summary of Financial and Business Review (For the six months ended June 30)** | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 10,132,488 | 26,582,474 | -62.0% | | Profit for the Period | 369,906 | 309,184 | +19.6% | | Basic Earnings Per Share | HKD 2.39 cents | HKD 2.19 cents | +9.1% | | Distribution, Trading and Processing Business Revenue | 9,737,116 | 26,157,033 | -62.8% | | Financial Services Business Revenue | 395,372 | 425,441 | -7.1% | | Gross Profit | 370,913 | 625,085 | -40.7% | | Other Gains/(Losses) | 56,409 | (146,662) | significant improvement | | Share of Profit of Associates | 140,354 | 64,811 | +116.5% | - The decrease in revenue was primarily due to reduced trading volume of silver and gold bullion, which ceased in the second half of **2024**[68](index=68&type=chunk) - The increase in profit for the period was mainly due to no provision for losses from alleged misappropriation of funds by a Singapore subsidiary (**2024**: **HKD 167,660,000**) and increased share of profit from associates[69](index=69&type=chunk)[71](index=71&type=chunk) [Future Outlook](index=30&type=section&id=Future%20Outlook) The Group will focus on the continued development of its financial services and distribution, trading, and processing businesses, planning to expand product lines, seek acquisition opportunities, and extend into international markets [Financial Services Business](index=30&type=section&id=Financial%20Services%20Business) The financial services business covers lending, securities and derivatives trading

Report Overview [GEM Characteristics and Disclaimer](index=1&type=section&id=GEM%20Characteristics%20and%20Disclaimer) The announcement details MaxWin International Holdings Limited's interim results for the six months ended June 30, 2025, emphasizing GEM market risks and the precedence of the English version - The GEM market targets small and medium-sized companies, entailing higher investment risks, potentially greater market volatility, and no guaranteed liquidity[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for the content of this announcement, make no representation, and accept no liability for any loss[2](index=2&type=chunk) - This announcement is prepared in English, with the Chinese version being a translation; in case of any inconsistency, the English version shall prevail[3](index=3&type=chunk) Financial Statements [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue grew 44.9% to S$7,060 thousand, gross profit turned positive, and loss per share significantly narrowed to 0.02 Singapore cents Key Financial Performance (For the six months ended June 30) | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 7,060 | 4,869 | 44.9% Increase | | Cost of sales | (5,517) | (4,987) | 10.6% Increase | | Gross profit/(loss) | 1,543 | (118) | Turned from loss to profit | | Operating loss | (128) | (1,486) | Loss narrowed by 91.4% | | Loss for the period | (192) | (1,581) | Loss narrowed by 87.8% | | Basic and diluted loss per share (Singapore cents) | (0.02) | (0.23) | Loss narrowed by 91.3% | - Other income increased from **S$50 thousand** in 2024 to **S$175 thousand** in 2025[5](index=5&type=chunk) - Administrative expenses increased from **S$1,322 thousand** in 2024 to **S$1,655 thousand** in 2025[5](index=5&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and equity decreased, cash and cash equivalents significantly reduced, and increased receivables and borrowings impacted liquidity and leverage ratios Key Financial Position (As of June 30) | Metric | 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Total assets | 8,341 | 8,753 | 4.7% Decrease | | Equity attributable to owners of the Company | 1,938 | 2,141 | 9.5% Decrease | | Total equity | 1,923 | 2,126 | 9.6% Decrease | | Total liabilities | 6,418 | 6,627 | 3.2% Decrease | | Current assets | 6,658 | 6,491 | 2.6% Increase | | Current liabilities | 3,764 | 3,550 | 6.0% Increase | - Trade and other receivables increased from **S$4,132 thousand** as of December 31, 2024, to **S$4,992 thousand** as of June 30, 2025[7](index=7&type=chunk) - Cash and cash equivalents decreased from **S$1,779 thousand** as of December 31, 2024, to **S$759 thousand** as of June 30, 2025[7](index=7&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners decreased from S$2,141 thousand to S$1,938 thousand for the six months ended June 30, 2025, driven by a S$192 thousand loss and S$11 thousand in exchange differences - Equity attributable to owners of the Company decreased from **S$2,141 thousand** as of January 1, 2025, to **S$1,938 thousand** as of June 30, 2025[9](index=9&type=chunk) - Loss for the period resulted in an increase in accumulated losses by **S$192 thousand**[9](index=9&type=chunk) - Exchange differences from translating foreign operations amounted to **S$11 thousand**, leading to a negative foreign currency translation reserve[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operations increased, investing cash outflow decreased, and financing activities shifted to a net outflow, leading to a S$1,020 thousand net decrease in cash Key Cash Flows (For the six months ended June 30) | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (792) | (683) | Outflow increased by 16.0% | | Net cash used in investing activities | (18) | (227) | Outflow decreased by 92.1% | | Net cash (used in)/generated from financing activities | (210) | 466 | Shifted from net inflow to net outflow | | Net decrease in cash and cash equivalents | (1,020) | (444) | Decrease increased by 129.7% | | Cash and cash equivalents at end of period | 759 | 1,154 | 34.2% Decrease | - Proceeds from borrowings significantly decreased from **S$2,101 thousand** in 2024 to **S$500 thousand** in 2025[12](index=12&type=chunk) - Repayment of principal portion of lease liabilities decreased from **S$745 thousand** in 2024 to **S$671 thousand** in 2025[12](index=12&type=chunk) Notes to the Financial Statements [Company Information and Basis of Preparation](index=9&type=section&id=Company%20Information%20and%20Basis%20of%20Preparation) The Cayman Islands-registered company operates in Singapore (medical device components) and China (big data solutions), with interim financial statements prepared using consistent accounting policies and presented in S$ thousand - The Company is registered in the Cayman Islands, with principal activities in Singapore (manufacturing and sales of medical device injection molded components and mold fabrication services) and China (big data solutions, technical support, and data services)[13](index=13&type=chunk) - The interim condensed consolidated financial statements adopt the same accounting policies and methods of computation as those used in the annual consolidated financial statements for the year ended December 31, 2024[14](index=14&type=chunk) - The financial statements are presented in **thousands of Singapore Dollars**[15](index=15&type=chunk) [New Standards Adopted and Amendments to Standards and Estimates](index=9&type=section&id=New%20Standards%20Adopted%20and%20Amendments%20to%20Standards%20and%20Estimates) The Group adopted IAS 21 (Amendment) "Lack of Exchangeability" from January 1, 2025, with significant judgments and estimates consistent with the prior year, acknowledging potential differences in actual results - The Group first adopted and applied IAS 21 (Amendment) "Lack of Exchangeability" from **January 1, 2025**[17](index=17&type=chunk) - The significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty in preparing the interim condensed consolidated financial statements are the same as those applied to the consolidated financial statements for the year ended December 31, 2024[18](index=18&type=chunk) [Financial Risk Management](index=10&type=section&id=Financial%20Risk%20Management) The Group faces market, credit, and liquidity risks, with unchanged risk management policies since December 31, 2024, and fair values of short-term receivables and payables approximating carrying amounts - The Group's business faces market risks (foreign currency risk and interest rate risk), credit risk, and liquidity risk[19](index=19&type=chunk) - Risk management policies have not changed since **December 31, 2024**[20](index=20&type=chunk) [Revenue and Segment Information](index=10&type=section&id=Revenue%20and%20Segment%20Information) For the six months ended June 30, 2025, all segments, including new data solutions and services (S$341 thousand), achieved revenue growth, leading to an overall gross profit turnaround Segment Revenue and Gross Profit (For the six months ended June 30) | Segment | 2025 Revenue (S$ thousand) | 2025 Gross Profit (S$ thousand) | 2024 Revenue (S$ thousand) | 2024 Gross Profit/(Loss) (S$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Components | 4,550 | 1,019 | 4,037 | 36 | | Sub-component parts | 2,169 | 485 | 832 | (154) | | Data solutions and services | 341 | 39 | – | – | | **Total** | **7,060** | **1,543** | **4,869** | **(118)** | - Sales of goods increased from **S$4,645 thousand** in 2024 to **S$6,594 thousand** in 2025[27](index=27&type=chunk) - Sales of services increased from zero in 2024 to **S$341 thousand** in 2025, while revenue from mold fabrication services decreased from **S$224 thousand** in 2024 to **S$125 thousand** in 2025[27](index=27&type=chunk) [Other Income](index=13&type=section&id=Other%20Income) Total other income for the six months ended June 30, 2025, surged by 250% to S$175 thousand, mainly driven by increased scrap sales Composition of Other Income (For the six months ended June 30) | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Government grants | 21 | 27 | 22.2% Decrease | | Scrap sales | 154 | 23 | 569.6% Increase | | **Total** | **175** | **50** | **250.0% Increase** | [Expense Details](index=14&type=section&id=Expense%20Details) Total expenses for the six months ended June 30, 2025, rose 12.1% to S$7,261 thousand, driven by increased cost of inventories sold and legal fees, while other depreciation and employee benefits decreased Major Expense Components (For the six months ended June 30) | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 3,283 | 2,404 | 36.6% Increase | | Employee benefit expenses | 1,861 | 1,919 | 3.0% Decrease | | Depreciation of property, plant and equipment | 113 | 191 | 40.9% Decrease | | Depreciation of right-of-use assets | 482 | 757 | 36.3% Decrease | | Legal and professional fees | 430 | 185 | 132.4% Increase | | Research and development expenses | 264 | 293 | 9.9% Decrease | | **Total expenses** | **7,261** | **6,475** | **12.1% Increase** | - Total directors' emoluments increased from **S$188 thousand** in 2024 to **S$200 thousand** in 2025[31](index=31&type=chunk) [Finance Costs](index=16&type=section&id=Finance%20Costs) Finance costs for the six months ended June 30, 2025, decreased by 32.7% to S$64 thousand, mainly due to lower interest on lease liabilities despite increased bank borrowing interest Composition of Finance Costs (For the six months ended June 30) | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Interest expense on lease liabilities | 39 | 75 | 48.0% Decrease | | Interest expense on bank borrowings | 25 | 13 | 92.3% Increase | | Interest expense on trust receipt loans | – | 7 | 100.0% Decrease | | **Total** | **64** | **95** | **32.7% Decrease** | [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, no income tax expense was recognized due to no taxable profit, and no withholding tax was provided for Chinese subsidiaries' retained earnings - Total income tax expense for the six months ended **June 30, 2025**, was **zero**[33](index=33&type=chunk) - The corporate income tax rate in Singapore is **17%**, while companies in the Cayman Islands and British Virgin Islands are exempt from income tax[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - The corporate income tax rate in China is **25%**, but no withholding tax was provided as retained earnings of Chinese subsidiaries are not expected to be distributed in the foreseeable future[38](index=38&type=chunk)[39](index=39&type=chunk) [Loss Per Share](index=17&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for the six months ended June 30, 2025, significantly narrowed by 91.3% to 0.02 Singapore cents, driven by reduced loss attributable to owners Loss Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (S$ thousand) | (192) | (1,581) | Loss narrowed by 87.8% | | Weighted average number of ordinary shares in issue (thousand shares) | 818,455 | 682,046 | 20.0% Increase | | Basic and diluted loss per share (Singapore cents) | (0.02) | (0.23) | Loss narrowed by 91.3% | - Diluted loss per share was the same as basic loss per share as there were no outstanding potential ordinary shares during the period[41](index=41&type=chunk) [Property, Plant and Equipment](index=18&type=section&id=Property%2C%20Plant%20and%20Equipment) Property, plant and equipment net book value decreased from S$425 thousand to S$328 thousand as of June 30, 2025, due to depreciation and write-offs, partially offset by additions - The net book value of property, plant and equipment decreased from **S$425 thousand** as of January 1, 2025, to **S$328 thousand** as of June 30, 2025[43](index=43&type=chunk) - Additions during the period amounted to **S$18 thousand**, depreciation was **S$113 thousand**, and write-offs were **S$2 thousand**[43](index=43&type=chunk)[44](index=44&type=chunk) [Right-of-Use Assets and Lease Liabilities](index=19&type=section&id=Right-of-Use%20Assets%20and%20Lease%20Liabilities) As of June 30, 2025, right-of-use assets and lease liabilities significantly decreased by 73.2% and 35.9% respectively, indicating reduced leasing activities and lower associated depreciation and cash outflows Right-of-Use Assets and Lease Liabilities (As of June 30) | Metric | 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Right-of-use assets | 176 | 658 | 73.2% Decrease | | Lease liabilities (Total) | 1,196 | 1,867 | 35.9% Decrease | | Depreciation expense of right-of-use assets (For the six months ended June 30) | 482 | 757 | 36.3% Decrease | - There were no additions or disposals of right-of-use assets during the period[45](index=45&type=chunk) - Total cash outflow for leases decreased from **S$820 thousand** in 2024 to **S$710 thousand** in 2025[46](index=46&type=chunk) [Trade and Other Receivables](index=20&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables increased by 20.8% to S$4,992 thousand as of June 30, 2025, mainly due to higher trade receivables, with no loss allowance recognized for trade receivables or contract assets Trade and Other Receivables (As of June 30) | Item | 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables | 3,729 | 2,707 | 37.8% Increase | | Other receivables | 417 | 440 | 5.2% Decrease | | Prepayments | 250 | 393 | 36.4% Decrease | | Deposits paid | 596 | 592 | 0.7% Increase | | **Total** | **4,992** | **4,132** | **20.8% Increase** | - Trade receivables are primarily denominated in **Singapore Dollars** and **US Dollars**, with credit terms generally ranging from **30 to 90 days**[51](index=51&type=chunk) - No loss allowance was recognized for trade receivables and contract assets as of the reporting date[54](index=54&type=chunk) [Share Capital](index=23&type=section&id=Share%20Capital) As of June 30, 2025, the Company's issued share capital remained at S$1,412 thousand (818,455,377 shares) and share premium at S$20,516 thousand, following a new share issuance on July 29, 2024 - As of **June 30, 2025**, the number of issued and fully paid ordinary shares was **818,455,377**, with share capital of **S$1,412 thousand** and share premium of **S$20,516 thousand**[56](index=56&type=chunk) - On **July 29, 2024**, the Company issued **136,409,229 new shares**, generating proceeds of **S$1,690 thousand**[56](index=56&type=chunk) [Trade and Other Payables](index=23&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables slightly increased by 0.2% to S$1,391 thousand as of June 30, 2025, with trade payables decreasing and other payables increasing, and no overdue amounts exceeding 90 days Trade and Other Payables (As of June 30) | Item | 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 1,035 | 1,055 | 1.9% Decrease | | Other payables and accrued expenses | 356 | 333 | 6.9% Increase | | **Total** | **1,391** | **1,388 | **0.2% Increase** | - Trade payables are primarily denominated in **US Dollars** and **Singapore Dollars**[58](index=58&type=chunk) - The aging analysis of trade payables shows **no overdue amounts exceeding 90 days**[58](index=58&type=chunk) [Related Party Transactions](index=25&type=section&id=Related%20Party%20Transactions) Key management includes Mr. Poon Sui Ho and Ms. Xu Bin, with related party borrowings being unsecured, carrying 0% to 4.80% annual interest, and having extendable one-year repayment terms - Key management includes Executive Directors **Mr. Poon Sui Ho** and **Ms. Xu Bin**[60](index=60&type=chunk)[61](index=61&type=chunk) - Borrowings are **unsecured**, with annual interest rates ranging from **0% to 4.80%**, and a repayment period of **one year, extendable**[62](index=62&type=chunk) Management Discussion and Analysis [Business Review](index=26&type=section&id=Business%20Review) For the six months ended June 30, 2025, revenue grew 44.9% to S$7.1 million, and net loss significantly narrowed by 87.5% to S$0.2 million, driven by increased medical device component sales - The Group's revenue was approximately **S$7.1 million**, representing a **44.9% year-on-year increase**[64](index=64&type=chunk) - Net loss was approximately **S$0.2 million**, a significant **87.5% year-on-year reduction**, primarily due to increased one-off sales orders for medical device injection molded plastic components[64](index=64&type=chunk) [Outlook](index=26&type=section&id=Outlook) Amid a challenging global economic outlook, the Group will prudently manage costs, growth, and risks, leveraging its expertise and diversified segments for sustainable development and business resilience - Global economic recovery is weaker than expected, with an uncertain outlook; the Group will remain vigilant and prudently manage operating costs, business growth, and risks[65](index=65&type=chunk) - The Group believes its business segment diversification can promote sustainable development and will continue to take action to mitigate operational risks and maximize resource utilization[65](index=65&type=chunk) [Financial Review](index=26&type=section&id=Financial%20Review) For the six months ended June 30, 2025, revenue grew 44.9% to S$7.1 million, gross profit turned positive with a 21.9% margin, administrative expenses increased, and loss for the period significantly reduced - Revenue increased by **44.9%** to **S$7.1 million**, primarily attributable to increased one-off sales orders for medical device injection molded plastic components in Singapore and big data solutions and services in China[66](index=66&type=chunk) - Cost of sales increased by **10.0%** to **S$5.5 million**, consistent with revenue growth[67](index=67&type=chunk) - Gross profit turned from a gross loss of **S$0.1 million** in the prior period of 2024 to a gross profit of **S$1.5 million**, with gross margin increasing from **2.4% to 21.9%**[68](index=68&type=chunk) - Administrative expenses increased by **30.8%** to **S$1.7 million**, mainly due to increased legal and professional fees incurred for business development[69](index=69&type=chunk)[70](index=70&type=chunk) - Loss for the period decreased from **S$1.6 million** to **S$0.2 million**[71](index=71&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=27&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, liquidity and leverage ratios deteriorated due to decreased cash, increased borrowings, and higher receivables/inventories, though no assets were pledged - The current ratio decreased from **1.83 times** as of December 31, 2024, to **1.77 times** as of June 30, 2025, primarily due to decreased cash, increased borrowings, and higher inventories/receivables[72](index=72&type=chunk) - The debt-to-equity ratio increased from **2.0 times** as of December 31, 2024, to **2.1 times** as of June 30, 2025, mainly due to increased borrowings and decreased total equity[72](index=72&type=chunk) - Cash and cash equivalents decreased from **S$1.8 million** as of December 31, 2024, to **S$0.8 million** as of June 30, 2025, while total borrowings increased from **S$0.5 million** to **S$1.1 million**[73](index=73&type=chunk) - The Group did not pledge any assets as of the reporting date[73](index=73&type=chunk) [Employees and Remuneration Policy](index=29&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's employee count increased to 94, with total staff costs stable at S$1.9 million, supported by training, career development, and competitive remuneration - As of **June 30, 2025**, the Group's total number of employees was **94**, an increase from **88** as of June 30, 2024[74](index=74&type=chunk) - Total staff costs for the six months ended **June 30, 2025**, were approximately **S$1.9 million**, consistent with the prior period[75](index=75&type=chunk) - The company provides on-the-job training, career development support, and remuneration and benefits, while adopting an equal opportunity policy[75](index=75&type=chunk) [Interim Dividend](index=29&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend payment for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended **June 30, 2025**[76](index=76&type=chunk) [Commitments, Contingent Liabilities and Material Investments](index=30&type=section&id=Commitments%2C%20Contingent%20Liabilities%20and%20Material%20Investments) As of June 30, 2025, the Group had no material commitments, contingent liabilities, or investments, nor any other future plans for significant capital assets beyond this announcement - As of **June 30, 2025**, the Group had no material commitments, contingent liabilities, or material investments[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - Other than as disclosed in this announcement, there were no other future plans for material investments or capital assets[80](index=80&type=chunk) [Significant Acquisitions and Disposals](index=30&type=section&id=Significant%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries - For the six months ended **June 30, 2025**, the Group did not undertake any significant acquisitions or disposals of subsidiaries[81](index=81&type=chunk) [Foreign Exchange Risk](index=30&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from purchases denominated in Singapore Dollars, US Dollars, and Renminbi, but this risk was not significant during the reporting periods, and no hedging instruments were used - The Group faces foreign exchange risk from purchases denominated in **Singapore Dollars**, **US Dollars**, and **Renminbi**[82](index=82&type=chunk) - Foreign exchange risk was **not significant** during the reporting periods, and no financial instruments were used for hedging[82](index=82&type=chunk) [Capital Structure and Post Balance Sheet Events](index=30&type=section&id=Capital%20Structure%20and%20Post%20Balance%20Sheet%20Events) The Group's capital structure remained unchanged for the period ended June 30, 2025, with no significant post-balance sheet events affecting business or financial performance identified by the Directors - The Group's capital structure remained **unchanged** for the period ended **June 30, 2025**[83](index=83&type=chunk) - No significant events concerning the Group's business or financial performance were identified subsequent to the interim period-end[84](index=84&type=chunk) Shareholder and Governance Information [Directors' and Chief Executive's Interests](index=31&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, Mr. Poon Sui Ho held a 4.13% long position in the Company's shares, with no other directors or chief executives holding any disclosable interests - Mr. Poon Sui Ho held a long position of **33,832,000 shares**, representing **4.13%** of the Company's share capital[85](index=85&type=chunk) - As of **June 30, 2025**, no directors or chief executives of the Company held any interests in underlying shares in respect of physically settled, cash settled, or other equity derivatives[86](index=86&type=chunk) [Substantial Shareholders' and Other Persons' Interests](index=32&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests) As of June 30, 2025, Ms. Wu Haiyan and Mr. Xie Jianlong were substantial shareholders, holding 6.44% and 7.53% long positions respectively, with no other disclosable interests known - Ms. Wu Haiyan held **52,694,000 shares**, representing **6.44%** of the share capital[87](index=87&type=chunk) - Mr. Xie Jianlong held a long position of **61,612,000 shares**, representing **7.53%** of the share capital[87](index=87&type=chunk) [Dealings in Listed Securities](index=32&type=section&id=Dealings%20in%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 - 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[88](index=88&type=chunk) [Share Option Scheme](index=33&type=section&id=Share%20Option%20Scheme) The Company adopted a 10-year share option scheme on December 19, 2017, for 40,000,000 options (4.9% of shares), with no grants or outstanding options for the six months ended June 30, 2025 - The Company adopted a share option scheme on **December 19, 2017**, with a **10-year validity**, allowing for the issuance of **40,000,000 share options**, representing approximately **4.9%** of issued shares[89](index=89&type=chunk) - For the six months ended **June 30, 2025**, no share options were granted, and none remained outstanding[91](index=91&type=chunk) [Corporate Governance](index=34&type=section&id=Corporate%20Governance) The Company maintains high corporate governance standards, complying with GEM Listing Rules, with the exception of the combined Chairman and CEO roles, which the Board deems in the best interest of the Company and shareholders - The Company has complied with the GEM Listing Rules Appendix C1 Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Poon, which the Board believes serves the best interests of the Company and its shareholders[92](index=92&type=chunk) - All Directors have fully complied with the required standards for Directors' dealings in the Company's securities[93](index=93&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors and chaired by Professor Cheung Ka Yu, reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025, confirming its compliance with relevant standards - The Audit Committee comprises **three independent non-executive directors**, with **Professor Cheung Ka Yu** as Chairman[94](index=94&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial information for the six months ended **June 30, 2025**, and considers it to be in compliance with applicable accounting standards, the GEM Listing Rules, and other applicable legal requirements[95](index=95&type=chunk) [Board Composition](index=35&type=section&id=Board%20Composition) As of the announcement date, the Board of Directors comprises four executive directors (Mr. Poon Sui Ho, Ms. Xu Bin, Mr. Lee Yan Kong, Mr. Yeung Kei Kwan) and three independent non-executive directors (Mr. Foo Sze An, Professor Cheung Ka Yu, Ms. Chan Yee Wah) - Executive Directors include **Mr. Poon Sui Ho**, **Ms. Xu Bin**, **Mr. Lee Yan Kong**, and **Mr. Yeung Kei Kwan**[96](index=96&type=chunk) - Independent Non-executive Directors include **Mr. Foo Sze An**, **Professor Cheung Ka Yu**, and **Ms. Chan Yee Wah**[96](index=96&type=chunk)

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, Melco International Development Limited achieved significant growth in net revenue, adjusted EBITDA, and profit attributable to owners of the Company, successfully turning losses into profits, with basic earnings per share turning positive and net asset value per share significantly increasing, though no interim dividend was recommended | Metric | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 19,964,591 | 17,765,628 | 12.4% | | Adjusted EBITDA | 5,370,000 | 4,490,000 | 19.6% | | Profit / (Loss) Attributable to Owners of the Company | 350,800 | (253,200) | 238.5% | | Basic Earnings / (Loss) Per Share Attributable to Owners of the Company | HKD 0.18 | (HKD 0.13) | 238.5% | | Net Asset Value Per Share Attributable to Owners of the Company (at period end) | HKD 0.4 | HKD 0.02 (as at December 31, 2024) | 2022.1% | - The Board recommended no interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This chapter presents the unaudited condensed consolidated statements of profit or loss and other comprehensive income for the six months ended June 30, 2025, and the condensed consolidated statements of financial position as of that date, providing detailed data on the Group's financial performance and asset and liability structure during the reporting period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's net revenue grew by **12.4%** to **HKD 19.96 billion**, operating income significantly increased, and profit for the period reached **HKD 525 million**, successfully reversing the loss of the same period last year, with profit attributable to owners of the Company at **HKD 350.8 million** and basic earnings per share at **HKD 0.18** | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Revenue | 19,964,591 | 17,765,628 | | Operating Income | 2,584,861 | 1,820,192 | | Profit / (Loss) Before Income Tax | 648,318 | (351,618) | | Profit / (Loss) for the Period | 525,093 | (443,629) | | Profit / (Loss) Attributable to Owners of the Company | 350,816 | (253,216) | | Profit / (Loss) Attributable to Non-controlling Interests | 174,277 | (190,413) | | Basic Earnings / (Loss) Per Share Attributable to Owners of the Company | HKD 0.18 | (HKD 0.13) | - Total operating costs and expenses net increased from **HKD 15.945 billion** in 2024 to **HKD 17.380 billion** in 2025, primarily due to increased gaming taxes and license fees, and employee benefit expenses[3](index=3&type=chunk) - Other comprehensive loss for the period was **HKD 234.6 million**, mainly from exchange differences on translation of overseas operations and fair value losses on interest rate swaps[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets slightly decreased to **HKD 84.72 billion**, and total liabilities slightly increased to **HKD 76.63 billion**, with equity attributable to owners of the Company significantly growing to **HKD 974.7 million** mainly due to the rights issue and profit for the period, and net current liabilities expanding, though the Group maintains sufficient cash and unutilized borrowing capacity | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 73,469,612 | 73,466,646 | | Total Current Assets | 11,251,237 | 11,282,857 | | Total Current Liabilities | 19,427,443 | 18,646,563 | | Net Current Liabilities | (8,176,206) | (7,363,706) | | Net Assets | 8,087,794 | 8,206,521 | | Equity Attributable to Owners of the Company | 974,672 | 45,930 | | Non-controlling Interests | 7,113,122 | 8,160,591 | - Despite recording net current liabilities of **HKD 8.176 billion**, the Group held cash and bank balances of **HKD 9.055 billion** and unutilized borrowing capacity of **HKD 8.974 billion**, of which **HKD 8.366 billion** was available for drawdown[11](index=11&type=chunk) - Equity attributable to owners of the Company significantly grew by **2022.1%**, primarily driven by the rights issue and profit for the period[7](index=7&type=chunk) [Notes](index=6&type=section&id=%E9%99%84%E8%A8%BB) This chapter details the Group's organizational structure, business operations development, financial statement preparation basis, changes in accounting policies, segment information, composition of various revenues and expenses, tax implications, changes in share capital, related party transactions, changes in ownership interests in subsidiaries, commitments and contingencies, and significant events after the reporting period [1. Organization and Business](index=6&type=section&id=1.%20%E7%B5%84%E7%B9%94%E5%8F%8A%E6%A5%AD%E5%8B%99) Melco International Development Limited, as an investment holding company, primarily develops, owns, and operates integrated resort facilities in Asia and Europe through its subsidiary Melco Resorts & Entertainment, including gaming operations in Macau, the Philippines, and Cyprus, with recent business developments affected by geopolitical conflicts, but the Group maintains sufficient liquidity and prepares financial information on a going concern basis - The Group is a developer, owner, and operator of integrated resort facilities in Asia and Europe, primarily operating gaming businesses through Melco Resorts & Entertainment[9](index=9&type=chunk) - In Macau, Melco Resorts & Entertainment operates City of Dreams and Altira Macau, and will cease operations of Grand Dragon Casino and three Mocha Clubs by the end of 2025[9](index=9&type=chunk) - City of Dreams Mediterranean operations are affected by ongoing military conflicts in Israel-Hamas and Russia-Ukraine, but the Group believes it can support going concern for at least the next twelve months[11](index=11&type=chunk)[12](index=12&type=chunk) [1(a) Corporate and Group Information](index=6&type=section&id=1%28a%29%20%E4%BC%81%E6%A5%AD%E5%8F%8A%E9%9B%86%E5%9C%98%E8%B3%87%E6%96%99) Melco International is a Hong Kong-registered investment holding company, with its gaming operations primarily managed by Melco Resorts & Entertainment, covering Macau (City of Dreams, Altira Macau, Studio City), the Philippines (City of Dreams Manila), and Cyprus (City of Dreams Mediterranean and satellite casinos), and has obtained a casino license in Sri Lanka - Melco International Development Limited is a public limited company incorporated in Hong Kong, acting as an investment holding company[8](index=8&type=chunk) - The Group operates its gaming businesses through Melco Resorts & Entertainment, including City of Dreams, Altira Macau, and Studio City in Macau, City of Dreams Manila in the Philippines, and City of Dreams Mediterranean and satellite casinos in Cyprus[9](index=9&type=chunk) - A subsidiary of Melco Resorts & Entertainment holds a casino license granted by the Sri Lankan government for a period of **20 years** from April 1, 2024, and will operate under the 'City of Dreams Sri Lanka' brand[9](index=9&type=chunk) [1(b) Recent Developments in Business Operations](index=7&type=section&id=1%28b%29%20%E6%9C%89%E9%97%9C%E6%A5%AD%E5%8B%99%E7%87%9F%E9%81%8B%E7%9A%84%E8%BF%91%E6%9C%9F%E7%99%BC%E5%B1%95) City of Dreams Mediterranean's operations in Cyprus continue to be affected by military conflicts in the Middle East, while the Group has signed a management agreement for the 'Nuwa' hotel at City of Dreams Sri Lanka, and despite net current liabilities, the Group has sufficient cash and unutilized borrowing capacity and expects to support going concern for the next 12 months - City of Dreams Mediterranean operations are affected by the ongoing military conflicts in Israel-Hamas and Russia-Ukraine, as well as the Iran-Israel military conflict[11](index=11&type=chunk) - A subsidiary of Melco Resorts & Entertainment entered into a management agreement with a John Keells subsidiary to provide management services for the 'Nuwa' hotel on the top five floors of the City of Dreams Sri Lanka hotel tower, which opened on July 15, 2025[11](index=11&type=chunk) - As of June 30, 2025, the Group recorded net current liabilities of **HKD 8.176 billion**, but held cash and bank balances of **HKD 9.055 billion** and unutilized borrowing capacity of **HKD 8.974 billion**[11](index=11&type=chunk) [2.1 Basis of Preparation](index=7&type=section&id=2.1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This interim financial information is prepared on a historical cost basis, with interest rate swaps measured at fair value and assets classified as held for sale stated at the lower of their carrying amount and fair value less costs to sell, complying with HKAS 34 and HKEX Listing Rules, and certain comparative figures have been reclassified to conform to the current period's presentation - This unaudited condensed consolidated interim financial information is prepared on a historical cost basis, except for interest rate swaps measured at fair value and assets classified as held for sale stated at the lower of their carrying amount and fair value less costs to sell[14](index=14&type=chunk) - This information is prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[14](index=14&type=chunk) - Certain comparative figures have been reclassified to conform to the current period's presentation, as the Directors of the Company believe the new presentation is more appropriate and relevant for the unaudited condensed consolidated interim financial information[15](index=15&type=chunk) [2.2 Changes in Accounting Policies and Disclosures](index=8&type=section&id=2.2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E8%AE%8A%E5%8B%95) This period saw the first-time adoption of revised HKFRS accounting standards and hedge accounting policies for interest rate swaps, with the adoption of revised HKAS 21 having no significant impact on the financial information, and the Group designating interest rate swaps as hedging instruments for cash flow hedges, with the effective portion of fair value changes recognized in other comprehensive income - The accounting policies adopted in the preparation of this interim financial information are consistent with those applied in the audited consolidated financial statements for the year ended December 31, 2024, except for the first-time adoption of revised HKFRS accounting standards and hedge accounting policies for interest rate swaps[16](index=16&type=chunk) - The adoption of revised HKAS 21 'Lack of Exchangeability' had no significant impact on the unaudited condensed consolidated interim financial information[17](index=17&type=chunk) - The Group designates interest rate swaps as hedging instruments for cash flow hedges, with the effective portion of fair value changes recognized in other comprehensive income[18](index=18&type=chunk)[19](index=19&type=chunk) [2.3 HKFRSs Issued But Not Yet Effective](index=9&type=section&id=2.3%20%E5%B7%B2%E9%A0%92%E5%B8%83%E4%BD%86%E5%B0%9A%E6%9C%AA%E7%94%9F%E6%95%88%E4%B9%8B%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87) For the six months ended June 30, 2025, the Group has not early adopted any new or revised HKFRSs that have been issued but are not yet effective - The Group has not early adopted any new or revised HKFRSs that have been issued but are not yet effective in the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[20](index=20&type=chunk) [3. Segment Information](index=9&type=section&id=3.%20%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group is divided into 'Casino and Hotel' and 'Others' operating and reportable segments based on products and services, with adjusted EBITDA used to assess segment performance, and during the reporting period, both net revenue and adjusted EBITDA for the 'Casino and Hotel' segment significantly increased, with geographical information showing Macau remains the primary revenue source, with contributions also from the Philippines and Cyprus - The Group's principal businesses are divided into two operating and reportable segments: (i) Casino and Hotel segment; and (ii) Other segment[10](index=10&type=chunk)[22](index=22&type=chunk) - Segment performance is assessed based on adjusted EBITDA, which is the method reported to the chief operating decision-makers for resource allocation and performance assessment[23](index=23&type=chunk) Segment Net Revenue and Adjusted EBITDA (HKD thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Casino and Hotel Segment Net Revenue | 19,964,591 | 17,765,628 | | Casino and Hotel Segment Adjusted EBITDA | 5,370,143 | 4,500,216 | | Other Segment Adjusted EBITDA | (4,415) | (10,957) | | Total Adjusted EBITDA | 5,365,728 | 4,489,259 | [3(a) Operating Segments](index=9&type=section&id=3%28a%29%20%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E) The Group has two operating segments: 'Casino and Hotel', covering gaming and hotel services, and 'Others', including investments in joint ventures and associates, with management assessing segment performance using adjusted EBITDA, which excludes interest, taxes, depreciation, amortization, and other non-operating items - The Group is divided into different business units based on the products and services involved, with the following two operating and reportable segments: (a) 'Casino and Hotel' segment; and (b) 'Other' segment[21](index=21&type=chunk)[22](index=22&type=chunk) - Segment performance is assessed based on adjusted EBITDA, which is a non-HKFRS financial measure used for resource allocation and performance evaluation[23](index=23&type=chunk) [Segment Net Revenue and Results](index=11&type=section&id=%E5%88%86%E9%A1%9E%E6%B7%A8%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, the Casino and Hotel segment's net revenue was **HKD 19.96 billion**, and adjusted EBITDA was **HKD 5.37 billion**, a significant increase from the same period last year, while the Other segment's adjusted EBITDA was negative, but the loss narrowed Segment Net Revenue and Adjusted EBITDA (HKD thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Casino and Hotel Segment Net Revenue | 19,964,591 | 17,765,628 | | Casino and Hotel Segment Adjusted EBITDA | 5,370,143 | 4,500,216 | | Other Segment Adjusted EBITDA | (4,415) | (10,957) | | Total Adjusted EBITDA | 5,365,728 | 4,489,259 | - Gaming taxes and license fees, employee benefit expenses, and other operating expenses for the Casino and Hotel segment all increased[26](index=26&type=chunk) [Segment Assets and Liabilities](index=13&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Casino and Hotel segment's total assets were **HKD 84.37 billion**, and total liabilities were **HKD 71.86 billion**, with both segment assets and liabilities remaining relatively stable compared to December 31, 2024 Segment Assets and Liabilities (HKD thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Casino and Hotel Segment Assets | 84,289,521 | 84,478,079 | | Other Segment Assets | 83,604 | 151,801 | | Total Assets | 84,720,849 | 84,749,503 | | Casino and Hotel Segment Liabilities | 71,864,722 | 71,359,354 | | Other Segment Liabilities | 2,098 | 2,217 | | Total Liabilities | 76,633,055 | 76,542,982 | [Geographical Information](index=14&type=section&id=%E5%9C%B0%E5%8D%80%E8%B3%87%E6%96%99) The Group's operations are primarily located in Macau, the Philippines, and Cyprus, with Macau contributing **HKD 17.38 billion** in net revenue for the six months ended June 30, 2025, and the Philippines and Cyprus contributing **HKD 1.56 billion** and **HKD 1.02 billion**, respectively, while Macau accounted for the largest proportion of non-current segment assets Net Revenue from External Customers (HKD thousands) | Region | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Macau | 17,382,673 | 15,172,173 | | Philippines | 1,560,823 | 1,717,577 | | Cyprus | 1,021,095 | 875,878 | | Total | 19,964,591 | 17,765,628 | Non-current Segment Assets (HKD thousands) | Region | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Macau | 64,735,613 | 65,675,996 | | Cyprus | 5,217,528 | 4,720,298 | | Philippines | 928,222 | 869,969 | | Other | 1,517,774 | 1,117,971 | | Total | 72,399,137 | 72,384,234 | [4. Net Revenue](index=15&type=section&id=4.%20%E6%B7%A8%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's total net revenue was **HKD 19.96 billion**, an increase of **12.4%** from the same period last year, with casino revenue being the primary contributor at **HKD 16.537 billion**, and entertainment and resort facilities (rooms, food and beverage, entertainment retail) also showing steady growth | Revenue Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Casino Revenue | 16,537,013 | 14,516,622 | | Rooms | 1,669,608 | 1,581,419 | | Food and Beverage | 1,142,463 | 1,076,672 | | Entertainment, Retail and Other | 615,507 | 590,915 | | Total Sales to External Customers | 19,964,591 | 17,765,628 | - Within entertainment, retail, and other revenue, rental income was **HKD 198.5 million**, a decrease from **HKD 222.5 million** in the same period last year[34](index=34&type=chunk) - Revenue from contracts with customers was **HKD 19.766 billion**, an increase from **HKD 17.543 billion** in the same period last year[35](index=35&type=chunk) [5. Profit / (Loss) Before Income Tax](index=16&type=section&id=5.%20%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) For the six months ended June 30, 2025, the Group's profit before income tax was **HKD 648.3 million**, successfully reversing the loss of the same period last year, with an impairment of **HKD 4.999 million** for Altira Macau and **HKD 27.285 million** for Mocha Clubs trademarks recognized during this period, reflecting underperforming assets and business strategy adjustments Key Deductions / (Additions) to Profit / (Loss) Before Income Tax (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Depreciation and Amortization | 2,149,608 | 2,250,395 | | Advertising and Promotion | 866,974 | 831,561 | | Repairs and Maintenance | 486,551 | 415,201 | | Net Impairment of Non-current Non-financial Assets | 32,284 | 12,178 | | Net Provision for / (Reversal of Provision for) Credit Losses | 29,653 | (7,954) | | Impairment of Investment in a Joint Venture | – | 104,171 | - The Group recognized an impairment of **HKD 4.999 million** for Altira Macau, primarily due to its lack of performance improvement[37](index=37&type=chunk) - The Group recognized an impairment of **HKD 27.285 million** for Mocha Clubs trademarks, due to the cessation of operations of three Mocha Clubs by the end of 2025 and a change in the estimated useful life of the trademarks from indefinite to finite[38](index=38&type=chunk) [6. Income Tax Expense](index=18&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense increased to **HKD 123.2 million**, primarily due to the first-time recognition of income tax under Pillar Two of **HKD 48.607 million**, with Macau Complementary Income Tax and Philippine dividend withholding tax also increasing, and the corporate income tax rate for the Sri Lankan subsidiary set to increase to **45%** | Tax Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Income Tax under Pillar Two | 48,607 | – | | Macau Complementary Income Tax | 39,611 | 33,801 | | Payment of Macau Complementary Income Tax in lieu of Dividends | 30,874 | 27,379 | | Philippine Dividend Withholding Tax | 16,570 | 11,539 | | Hong Kong Profits Tax | 2,909 | 5,622 | | Total | 123,225 | 92,011 | - The Group has provided for top-up tax in one of its jurisdictions during this interim period and recognized a current tax expense of **HKD 48.607 million** related to Pillar Two rules[40](index=40&type=chunk)[41](index=41&type=chunk) - A subsidiary incorporated in Sri Lanka is subject to Sri Lankan corporate income tax at **40%**, and the tax rate on profits from gaming activities will increase to **45%** from April 1, 2025[41](index=41&type=chunk) [7. Dividends](index=19&type=section&id=7.%20%E8%82%A1%E6%81%AF) The Board recommended no interim dividend for the six months ended June 30, 2025, and 2024 - The Board recommended no interim dividend for the six months ended June 30, 2025, and 2024[42](index=42&type=chunk) [8. Earnings / (Loss) Per Share Attributable to Owners of the Company](index=19&type=section&id=8.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company was **HKD 0.18**, a significant improvement from the restated loss per share of **HKD 0.13** in the same period last year, with diluted earnings per share at **HKD 0.17**, and the weighted average number of shares adjusted for the rights issue completed in June 2025 | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit / (Loss) Attributable to Owners of the Company for Basic Earnings / (Loss) Per Share Calculation | 350,816 | (253,216) | | Profit / (Loss) Attributable to Owners of the Company for Diluted Earnings / (Loss) Per Share Calculation | 350,457 | (253,684) | | Metric | 2025 (thousands of shares) | 2024 (thousands of shares) | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares for Basic Earnings / (Loss) Per Share Calculation | 1,992,627 | 1,950,345 | | Weighted Average Number of Ordinary Shares for Diluted Earnings / (Loss) Per Share Calculation | 2,011,350 | 1,950,345 | - The weighted average number of shares used for calculating basic and diluted earnings / (loss) per share attributable to owners of the Company for the six months ended June 30, 2025, has been adjusted, and for the six months ended June 30, 2024, has been restated to reflect the bonus element of the rights issue completed on June 17, 2025[45](index=45&type=chunk) [9. Trade Receivables](index=21&type=section&id=9.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables were **HKD 1.015 billion**, a decrease from **HKD 1.120 billion** as of December 31, 2024, with provision for credit losses decreasing, and receivables overdue for more than six months still accounting for a larger proportion | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Current | 382,410 | 339,455 | | Overdue within one month | 153,499 | 508,621 | | Overdue over six months | 1,082,465 | 1,112,464 | | Provision for Credit Losses | (874,522) | (981,677) | | Total | 1,015,250 | 1,119,583 | - Total trade receivables decreased by **HKD 104.33 million**, and provision for credit losses decreased by **HKD 107.15 million**[47](index=47&type=chunk) [10. Assets Classified as Held for Sale](index=21&type=section&id=10.%20%E5%88%86%E9%A1%9E%E7%82%BA%E6%8C%81%E4%BD%9C%E5%87%BA%E5%94%AE%E4%B9%8B%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group's management sought to dispose of its **86.68%** equity interest in Aberdeen Restaurant Enterprises Limited, with related assets and liabilities classified as held for sale, and the transaction expected to be completed on or before September 30, 2025 - Management sought to dispose of its entire **86.68%** equity interest in Aberdeen Restaurant Enterprises Limited[48](index=48&type=chunk) - On July 4, 2025, the Group entered into a sale and purchase agreement to dispose of its entire **86.68%** equity interest in Aberdeen Restaurant Enterprises Limited to an independent third party, with the transaction expected to be completed on or before September 30, 2025[48](index=48&type=chunk) Assets and Liabilities of Aberdeen Restaurant Group Classified as Held for Sale (HKD thousands) | Item | June 30, 2025 (Unaudited) | | :--- | :--- | | Assets: Cash and Bank Balances | 28,312 | | Assets: Prepayments, Deposits and Other Receivables | 531 | | Total Assets | 28,843 | | Liabilities: Other Payables, Accruals and Deposits Received | 2,098 | [11. Trade Payables](index=22&type=section&id=11.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables were **HKD 132.8 million**, a decrease from **HKD 192.5 million** as of December 31, 2024, with payables due within one month accounting for the largest proportion, but overall payables decreasing | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within one month | 92,903 | 135,596 | | Over one month but within three months | 26,293 | 39,399 | | Over three months but within six months | 2,242 | 4,981 | | Over six months | 11,368 | 12,509 | | Total | 132,806 | 192,485 | - Total trade payables decreased by **HKD 59.68 million**, primarily due to a reduction in amounts due within one month[50](index=50&type=chunk) [12. Other Payables, Accruals and Deposits Received](index=23&type=section&id=12.%20%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%87%89%E8%A8%88%E9%96%8B%E6%94%AF%E5%8F%8A%E5%B7%B2%E6%94%B6%E6%8C%89%E9%87%91) As of June 30, 2025, total current and non-current other payables, accruals, and deposits received amounted to **HKD 10.548 billion**, with this period seeing the addition of interest rate swap liabilities of **HKD 23.18 million**, reflecting the Group's floating-to-fixed interest rate swap arrangements to manage interest rate risk | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Current Liabilities | 8,185,772 | 8,250,163 | | Total Non-current Liabilities | 2,362,386 | 2,458,289 | | Interest Rate Swap Liabilities (Current) | 17,956 | – | | Interest Rate Swap Liabilities (Non-current) | 5,224 | – | - A subsidiary of the Company entered into four floating-to-fixed interest rate swap arrangements to manage its interest rate risk arising from loans drawn under the 2020 Credit Facilities, with a total notional amount of **HKD 5.88 billion** for outstanding interest rate swaps[51](index=51&type=chunk) - Changes in the fair value of interest rate swaps are recognized as assets or liabilities in the Group's condensed consolidated statement of financial position, and adjustments to other comprehensive income are accumulated under other revaluation reserves in equity[52](index=52&type=chunk) [13. Interest-bearing Borrowings](index=24&type=section&id=13.%20%E8%A8%88%E6%81%AF%E5%80%9F%E8%B2%B8) As of June 30, 2025, the Group's total interest-bearing borrowings were **HKD 60.901 billion**, a slight increase from **HKD 60.688 billion** as of December 31, 2024, with unsecured senior notes decreasing while unsecured bank loans significantly increased, and the Group actively manages its debt, including repaying maturing notes, revising credit facility terms, and entering into interest rate swaps to hedge risks | Borrowing Category | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Senior Notes | 47,126,766 | 54,350,307 | | Total Bank Loans | 13,774,309 | 6,337,391 | | Total Interest-bearing Borrowings | 60,901,075 | 60,687,698 | | Fixed Rate Borrowings | 47,126,766 | 54,350,307 | | Floating Rate Borrowings | 13,774,309 | 6,337,391 | - Unsecured senior notes with a principal amount of **USD 1 billion** bearing **4.875%** interest were fully repaid on June 6, 2025, primarily utilizing drawdowns from the 2020 Credit Facilities[57](index=57&type=chunk) - The maturity date of the 2021 Credit Facilities was extended by two years to June 5, 2028, after the reporting period, and certain financial covenants were revised[60](index=60&type=chunk)[74](index=74&type=chunk) [14. Share Capital](index=29&type=section&id=14.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's issued and fully paid share capital increased to **HKD 6.4739 billion**, and the number of ordinary shares increased to **2.275 billion**, primarily due to the rights issue completed in June 2025, with net proceeds from the rights issue of approximately **HKD 380.6 million** partly used to repay the 2021 Credit Facilities | Item | Number of Ordinary Shares | Amount (HKD thousands) | | :--- | :--- | :--- | | As at January 1, 2024 and December 31, 2024 | 1,516,683,755 | 5,701,853 | | Shares Issued under Rights Issue | 758,341,877 | 780,030 | | Transaction Costs Arising from Rights Issue | – | (8,026) | | As at June 30, 2025 | 2,275,025,632 | 6,473,857 | - The rights issue was completed on June 17, 2025, with **758,341,877** rights shares allotted and issued at **HKD 1.0286** per rights share, raising gross proceeds of approximately **HKD 780.0 million**[64](index=64&type=chunk) - Net proceeds from the rights issue (after deducting expenses) were approximately **HKD 380.6 million**, part of which was used to repay outstanding amounts under the 2021 Credit Facilities[64](index=64&type=chunk)[65](index=65&type=chunk) [15. Related Party Transactions](index=30&type=section&id=15.%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) The Group entered into two shareholder loan facilities with Mr. Lawrence Ho, Chairman and Chief Executive Officer, and his associates, with the first shareholder loan facility fully repaid in June 2025, and the second shareholder loan facility, used to repay part of the 2021 Credit Facilities and offset against rights issue subscription payments, terminated on June 30, 2025 - The Company entered into two shareholder loan facilities ('First Shareholder Loan Facility') totaling **USD 25 million** with Mr. Lawrence Ho and a company controlled by him, which were fully prepaid on June 18, 2025[67](index=67&type=chunk) - The Company entered into the 'Second Shareholder Loan Facility' with an associate of Mr. Ho, for a maximum aggregate amount of **HKD 451.8 million**, including arrangements to offset rights issue subscription payments[68](index=68&type=chunk) - Approximately **HKD 389.9 million** under the Second Shareholder Loan Facility was used to offset rights issue subscription payments due from Mr. Ho's associates and was terminated on June 30, 2025[69](index=69&type=chunk) [16. Changes in Ownership Interests in Certain Subsidiaries](index=31&type=section&id=16.%20%E8%8B%A5%E5%B9%B2%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E6%AC%8A%E6%AC%8A%E7%9B%8A%E4%B9%8B%E8%AE%8A%E5%8B%95) For the six months ended June 30, 2025, Melco Resorts & Entertainment repurchased American Depositary Shares from the open market, resulting in the Group's ownership interest in Melco Resorts & Entertainment increasing from **54.59%** to **58.69%** - Melco Resorts & Entertainment repurchased **32,345,223** American Depositary Shares from the open market for a total consideration of approximately **USD 166.0 million**, leading to an increase in the Group's ownership interest in Melco Resorts & Entertainment[70](index=70&type=chunk) - The Group's ownership interest in Melco Resorts & Entertainment increased from **54.59%** as of January 1, 2025, to **58.69%** as of June 30, 2025[70](index=70&type=chunk) [17. Commitments and Contingencies](index=32&type=section&id=17.%20%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E4%BA%8B%E9%A0%85) The Group has fulfilled its **USD 100 million** investment commitment for establishing an entertainment center at City of Dreams Sri Lanka, and its subsidiary ICRD is facing arbitration for additional construction costs for City of Dreams Mediterranean and has filed substantial counterclaims, with the outcome currently uncertain - The Group has fulfilled its commitment to invest **USD 100 million** in establishing and operating an entertainment center at City of Dreams Sri Lanka[71](index=71&type=chunk) - ICR Cyprus Resort Development Co Limited, a subsidiary of the Company, is facing arbitration for additional construction costs for City of Dreams Mediterranean and has filed substantial counterclaims against the claimant[72](index=72&type=chunk) - ICRD believes that, based on the arbitration progress to date, the outcome of the arbitration cannot be determined at present, nor can the range of possible loss be reasonably estimated[72](index=72&type=chunk) [18. Events After the Reporting Period](index=32&type=section&id=18.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) After the reporting period, the Group fully repaid the 2025 Senior Notes in July 2025 using revolving credit facilities and cash on hand, the maturity date of the 2021 Credit Facilities was extended by two years to June 5, 2028, with revised financial covenants, and the Group repaid part of the outstanding principal amount under the 2020 Credit Facilities in August 2025 - On July 15, 2025, the Group fully repaid the outstanding principal amount of **USD 221.6 million** (approximately **HKD 1.74 billion**) of the 2025 Senior Notes[73](index=73&type=chunk) - On July 31, 2025, the Group entered into a second amendment and restatement agreement with the facility agent of the 2021 Credit Facilities, extending the maturity date by two years to June 5, 2028, and revising certain financial covenant terms[74](index=74&type=chunk) - On August 29, 2025, the Group repaid an outstanding principal amount of **HKD 447 million** under the 2020 Credit Facilities, together with accrued interest[74](index=74&type=chunk) [Management Discussion and Analysis](index=34&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) This section provides an overview of the Group's strong performance in the first half of 2025, highlighting its resilience and growth across integrated resorts in Macau, the Philippines, and Cyprus, with the Group committed to optimizing operations, investing in property upgrades, enriching entertainment experiences, and actively expanding its global business, while also detailing its achievements and commitments in corporate governance, business operations, talent development, corporate social responsibility, and environmental sustainability [Significant Events and Developments](index=34&type=section&id=%E9%87%8D%E8%A6%81%E4%BA%8B%E4%BB%B6%E5%8F%8A%E7%99%BC%E5%B1%95) In the first half of 2025, the Group's integrated resorts demonstrated strong resilience, focusing on optimizing operating expenses, investing in property upgrades, and creating premium guest experiences, with the revamped 'The House of Dancing Water' in Macau significantly boosting non-gaming revenue, cost optimization measures implemented in the Philippines, and Cyprus operations remaining stable despite Middle East conflicts - In the first half of 2025, the Group's integrated resorts demonstrated strong resilience, focusing on optimizing operating expenses and strategically investing in property upgrades and creating premium guest experiences[75](index=75&type=chunk) - Macau's 'The House of Dancing Water' returned in May 2025 with overwhelming attendance, significantly boosting non-gaming revenue and driving visitor growth in Macau[75](index=75&type=chunk) - In Cyprus, despite continuous incidents in the Middle East in June 2025, City of Dreams Mediterranean and its satellite casinos demonstrated significant resilience and stable performance[75](index=75&type=chunk) [Business Review](index=34&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group operates multiple integrated resorts in Macau, the Philippines, and Cyprus through Melco Resorts & Entertainment, with net revenue growing by **12.4%** to **HKD 19.96 billion** in the first half of 2025 and achieving profitability, as properties actively undergo upgrades and launch new entertainment to enhance competitiveness and attract a broader customer base, while the Group also adjusts the operating strategy for some Macau casinos - Melco International operates gaming businesses through its subsidiary Melco Resorts & Entertainment Limited, holding approximately **53.85%** of Melco Resorts & Entertainment's total issued shares as of June 30, 2025[76](index=76&type=chunk) - For the six months ended June 30, 2025, the Group's total net revenue was **HKD 19.96 billion**, an increase of **12.4%** from the same period in 2024, and recorded a profit attributable to owners of the Company of **HKD 350.8 million**[77](index=77&type=chunk) - The Group will cease operations of Grand Dragon Casino and three Mocha Clubs by the end of 2025 and is applying for continued operation of the remaining three Mocha Clubs until the expiry of the Macau concession[83](index=83&type=chunk) [Overview of Integrated Gaming and Entertainment Resorts](index=34&type=section&id=%E7%B6%9C%E5%90%88%E5%8D%9A%E5%BD%A9%E5%8F%8A%E5%A8%9B%E6%A8%82%E5%BA%A6%E5%81%87%E6%9D%91%E6%A6%82%E8%A6%BD) Melco International operates integrated resorts in Asia and Europe through Melco Resorts & Entertainment, including City of Dreams, Altira Macau, Studio City in Macau, City of Dreams Manila in the Philippines, and City of Dreams Mediterranean in Cyprus, with the Group's net revenue growing by **12.4%** to **HKD 19.96 billion** in the first half of 2025 and achieving profitability - Melco International operates gaming businesses through its subsidiary Melco Resorts & Entertainment Limited, holding approximately **53.85%** of Melco Resorts & Entertainment's total issued shares as of June 30, 2025[76](index=76&type=chunk) - Melco Resorts & Entertainment currently operates City of Dreams, Altira Macau, and Studio City in Macau, City of Dreams Manila in the Philippines, and City of Dreams Mediterranean and satellite casinos in Cyprus[76](index=76&type=chunk)[77](index=77&type=chunk) - For the six months ended June 30, 2025, the Group's total net revenue was **HKD 19.96 billion**, an increase of **12.4%** from the same period in 2024, and recorded a profit attributable to owners of the Company of **HKD 350.8 million**[77](index=77&type=chunk) [City of Dreams](index=35&type=section&id=%E6%96%B0%E6%BF%A0%E5%A4%A9%E5%9C%B0) Macau City of Dreams, as the flagship integrated resort, operated an average of **434** gaming tables and **622** gaming machines in the first half of 2025, with its revamped 'The House of Dancing Water' significantly boosting non-gaming revenue and visitor numbers, and plans for main entrance and Nüwa hotel renovations expected to be completed in 2026 - City of Dreams operated an average of approximately **434** gaming tables and **622** gaming machines in the first half of 2025[78](index=78&type=chunk) - 'The House of Dancing Water' returned in May 2025 with a new storyline and cutting-edge technology, receiving excellent feedback, significantly boosting non-gaming revenue and driving visitor growth in Macau[78](index=78&type=chunk) - Renovation work for the main entrance of City of Dreams has commenced, and a comprehensive upgrade plan for the Nüwa hotel is imminent, expected to be completed in 2026[78](index=78&type=chunk) [Studio City](index=35&type=section&id=%E6%96%B0%E6%BF%A0%E5%BD%B1%E5%BD%97) Studio City operated an average of **253** gaming tables and **760** gaming machines in the first half of 2025, launching Macau's first indoor skate park and hosting international skateboarding competitions to enrich tourist attractions, and also holding 'Toy Story' themed events and celebrity concerts to attract family tourists and boost the local economy - Studio City operated an average of approximately **253** gaming tables and **760** gaming machines in the first half of 2025[79](index=79&type=chunk) - Studio City launched Macau's first indoor skate park, Studio City Skate Park, and hosted the inaugural 'Studio City Skate Festival' and the first international skateboarding competition in the Guangdong-Hong Kong-Macao Greater Bay Area[80](index=80&type=chunk) - Other exciting events included the popular 'Toy Story' 30th-anniversary themed activities for family tourists and celebrity concerts[80](index=80&type=chunk) [Altira Macau](index=36&type=section&id=%E6%BE%B3%E9%96%80%E6%96%B0%E6%BF%A0%E9%8B%92) Altira Macau offers casino and hotel experiences specifically for the premium mass and mass market segments, operating an average of **33** gaming tables and **133** gaming machines in the first half of 2025, and received a Forbes Travel Guide Five-Star rating for the 16th consecutive year, attracting travelers with its attentive service and captivating views - Altira Macau is an integrated resort designed to provide casino and hotel experiences specifically for the premium mass and mass market segments[81](index=81&type=chunk) - Altira Macau received a Forbes Travel Guide Five-Star rating for the **16th** consecutive year in 2025[81](index=81&type=chunk) - Altira Macau operated an average of approximately **33** gaming tables and **133** gaming machines in the first half of 2025[81](index=81&type=chunk) [Mocha Clubs and Others](index=36&type=section&id=%E6%91%A9%E5%8D%A1%E5%A8%9B%E6%A8%82%E5%A0%B4%E5%8F%8A%E5%85%B6%E4%BB%96) Mocha Clubs, Macau's largest non-casino electronic gaming machine business, operated an average of **845** gaming machines in the first half of 2025, with the Group set to cease operations of Grand Dragon Casino and three Mocha Clubs by the end of 2025, and applying for continued operation of the remaining three Mocha Clubs until the expiry of the Macau concession - Mocha Clubs, Macau's largest non-casino electronic gaming machine business, operated an average of approximately **845** gaming machines in the first half of 2025[82](index=82&type=chunk) - The Group will cease operations of Grand Dragon Casino and three Mocha Clubs (namely Mocha Grand Dragon, Mocha Guangfa, and Mocha Grandview) by the end of 2025[83](index=83&type=chunk) - The Group is currently applying to the Macau government for relevant authorizations and approvals for the remaining three Mocha Clubs (namely Mocha Inner Harbour, Mocha Sintra, and Mocha Golden Dragon) to continue operations after December 2025 until the expiry of the Macau concession[83](index=83&type=chunk) [City of Dreams Manila](index=37&type=section&id=%E6%96%B0%E6%BF%A0%E5%A4%A9%E5%9C%B0%EF%BC%88%E9%A6%AC%E5%B0%BC%E6%8B%89%EF%BC%89) City of Dreams Manila, located at the entrance of Entertainment City in Manila, offers diverse gaming and accommodation experiences, operating an average of **266** gaming tables and **2,266** gaming machines in the first half of 2025, demonstrating the Group's ability to deliver on its international vision - City of Dreams Manila, located at the entrance of Entertainment City in Manila, offers unparalleled entertainment and accommodation experiences for the Southeast Asian market[84](index=84&type=chunk) - City of Dreams Manila operated an average of approximately **266** gaming tables and **2,266** gaming machines in the first half of 2025[84](index=84&type=chunk) [City of Dreams Mediterranean and Others](index=37&type=section&id=City%20of%20Dreams%20Mediterranean%E5%8F%8A%E5%85%B6%E4%BB%96) City of Dreams Mediterranean, Europe's first and largest integrated resort, offers 500 hotel rooms, a casino, and conference facilities, operating an average of **102** gaming tables and **723** gaming machines in the first half of 2025, with the Group also operating three satellite casinos in Cyprus - City of Dreams Mediterranean, Europe's first and largest integrated resort, aims to establish Cyprus as a year-round premier destination for tourism and business[85](index=85&type=chunk) - In addition to City of Dreams Mediterranean, the Group continues to operate three satellite casinos in Cyprus located in Nicosia, Ayia Napa, and Paphos[85](index=85&type=chunk) - In the first half of 2025, City of Dreams Mediterranean operated an average of approximately **102** gaming tables and **723** gaming machines, while the satellite casinos operated an average of approximately **4** gaming tables and **162** gaming machines[85](index=85&type=chunk) [Outlook](index=38&type=section&id=%E5%B1%95%E6%9C%9B) The Group is optimistic about market recovery and will focus on delivering world-class entertainment and hospitality experiences for sustained growth, with strong tourism growth in Macau, government support, and non-gaming development enhancing its appeal, and the Group continuing to optimize Macau properties and expand global operations with an asset-light development strategy, such as City of Dreams Sri Lanka, while also exploring strategic options for City of Dreams Manila to strengthen the balance sheet - Macau's tourism industry continued to record strong growth, with total visitor arrivals increasing by **14.9%** year-on-year to **19.2 million** in the first half of 2025[86](index=86&type=chunk) - The Group is fully renovating the Nüwa hotel, expected to be completed in 2026, which will relaunch under a new brand, offering approximately **150** high-end luxury rooms[86](index=86&type=chunk) - City of Dreams Sri Lanka officially opened in August 2025, marking another significant milestone in the Group's global business expansion and demonstrating an asset-light development strategy[87](index=87&type=chunk) - The Group is exploring various strategic options for City of Dreams Manila, aiming to strengthen the Group's balance sheet and unlock capital to support new opportunities[88](index=88&type=chunk) [Achievements and Awards](index=39&type=section&id=%E6%88%90%E5%B0%B1%E5%8F%8A%E7%8D%8E%E9%A0%85) In 2025, the Group received numerous international accolades, highlighting its leadership in corporate governance, operational excellence, talent development, corporate social responsibility, and environmental sustainability, including 'Best Investor Relations Company' and 'Best CEO in Asia' from *Corporate Governance Asia* magazine, **107** stars and **19** Five-Star honors from *Forbes Travel Guide*, eight Michelin stars from *MICHELIN Guide Hong Kong Macau*, and multiple sustainability awards - In 2025, the Company was awarded 'Best Investor Relations Company' for the **14th** consecutive year at the Asian Excellence Awards hosted by *Corporate Governance Asia* magazine, and Chairman and CEO Mr. Lawrence Ho was also named 'Asia's Best CEO' for the **14th** consecutive year[90](index=90&type=chunk) - In 2025, the Group received a total of **107** stars in the *Forbes Travel Guide 2025*, with its hotels, restaurants, and spa facilities earning a record **19** Five-Star honors[92](index=92&type=chunk) - The Group was once again awarded 'Best Environmental Responsibility' and 'Asia Sustainability Award' at the 2025 Asian Excellence Awards and was included in the 2025 S&P Global *Sustainability Yearbook*[97](index=97&type=chunk) [Corporate Governance](index=39&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) Melco International received widespread recognition for its corporate governance, winning 'Best Investor Relations Company' for the **14th** consecutive year from *Corporate Governance Asia* magazine, and Chairman and CEO Mr. Lawrence Ho was also named 'Asia's Best CEO' for the **14th** consecutive year, reflecting the company's commitment to transparency, accountability, and sustainable growth - In 2025, the Company was awarded 'Best Investor Relations Company' for the **14th** consecutive year at the Asian Excellence Awards hosted by *Corporate Governance Asia* magazine[90](index=90&type=chunk) - Chairman and CEO Mr. Lawrence Ho was also named 'Asia's Best CEO' for the **14th** consecutive year[90](index=90&type=chunk) [Business Operations](index=39&type=section&id=%E6%A5%AD%E5%8B%99%E9%81%8B%E7%87%9F) The Group demonstrated excellence in dining, hotel, and entertainment services, receiving **107** stars and **19** Five-Star honors in the *Forbes Travel Guide 2025*, and earning eight Michelin stars in the *MICHELIN Guide Hong Kong Macau 2025*, with its establishments like Jade Dragon, Alain Ducasse at Morpheus, and Pearl Dragon receiving numerous accolades, showcasing their world-class quality and innovation - In 2025, the Group received a total of **107** stars in the *Forbes Travel Guide 2025*, with its hotels, restaurants, and spa facilities earning a record **19** Five-Star honors[92](index=92&type=chunk) - The Group was once again recognized by the *MICHELIN Guide Hong Kong Macau 2025* in the culinary field, with five of its establishments collectively earning eight Michelin stars[92](index=92&type=chunk) - Jade Dragon, a high-end Cantonese restaurant at City of Dreams, received a Forbes Travel Guide Five-Star rating for the **12th** consecutive year and a Michelin Three-Star honor for the **seventh** consecutive year[92](index=92&type=chunk) [Talent](index=41&type=section&id=%E4%BA%BA%E6%89%8D) The Group is committed to nurturing local talent in entertainment and creative fields, providing practical opportunities through world-class productions like 'The House of Dancing Water' and co-hosting the 'Melco Macau Star – Youth Talent Competition' with the Association for National Conditions Education (Macau), and additionally sponsoring the 'Inclusive Conference and Carnival' and 'Macau Charity Golf Masters' to promote social diversity and inclusion - The Group is committed to nurturing and training talent in the entertainment and creative fields, providing valuable opportunities for local talent to participate in world-class productions through 'The House of Dancing Water'[94](index=94&type=chunk) - The Group continued to co-host the 'Melco Macau Star – Youth Talent Competition' with the Association for National Conditions Education (Macau), attracting nearly **1,300** young participants[94](index=94&type=chunk) - The Group once again sponsored the 'Inclusive Conference and Carnival' and 'Macau Charity Golf Masters' in 2025, two internationally renowned events promoting social diversity and inclusion[94](index=94&type=chunk) [Corporate Social Responsibility](index=41&type=section&id=%E4%BC%81%E6%A5%AD%E7%A4%BE%E6%9C%83%E8%B2%AC%E4%BB%BB) The Group's corporate social responsibility is reflected in volunteer services, responsible gaming, and supporting local SMEs, with the Group hosting the 'Melco Volunteer Recognition Ceremony 2025' to honor over **2,000** volunteers, exceeding regulatory requirements in responsible gaming and receiving the 'Best Responsible Gaming Program' award, and supporting local SMEs through roadshows and business matching events - The Group hosted the 'Melco Volunteer Recognition Ceremony 2025' to recognize over **2,000** colleagues and their children who participated in volunteer services from 2023 to 2024[95](index=95&type=chunk) - Responsible gaming is a fundamental philosophy of the Group's operations, with the Group exceeding regulatory requirements in all jurisdictions and receiving the 'Best Responsible Gaming Program' award at the Asian Gaming Awards[95](index=95&type=chunk) - The Group prioritizes supporting local SMEs through iconic back-of-house staff heartland roadshows and business matching events in collaboration with the Macau Youth Entrepreneurship Incubation Centre[96](index=96&type=chunk) [Environmental Sustainability](index=42&type=section&id=%E7%92%B0%E5%A2%83%E5%8F%AF%E6%8C%81%E7%BA%8C%E7%99%BC%E5%B1%95) The Group's 'Beyond Boundaries' commitment is reflected in sustainable sourcing, green transportation, and renewable energy utilization, having achieved its goal of sourcing **100%** cage-free eggs globally by 2025, with electric and hybrid buses accounting for **55%** of its fleet, and its properties equipped with over **25,000** solar photovoltaic panels, earning it multiple environmental sustainability awards and inclusion in the 2025 S&P Global *Sustainability Yearbook* - The Group has achieved its goal of sourcing **100%** cage-free eggs across its global properties by 2025[97](index=97&type=chunk) - The Group's electric and hybrid buses and cars account for **55%** of its fleet, and its properties are equipped with over **25,000** solar photovoltaic panels, generating nearly **10,000** MWh of electricity annually[97](index=97&type=chunk) - The Group was once again awarded 'Best Environmental Responsibility' and 'Asia Sustainability Award' at the 2025 Asian Excellence Awards and was included in the 2025 S&P Global *Sustainability Yearbook*[97](index=97&type=chunk) [Financial Review](index=43&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This chapter provides a detailed review of the Group's financial results and financial position for the six months ended June 30, 2025, including significant growth in net revenue, adjusted EBITDA, profit attributable to owners of the Company, and earnings per share, and also analyzes the operating revenue, adjusted property EBITDA, and gaming and non-gaming operational performance of its key subsidiary Melco Resorts & Entertainment and its properties (City of Dreams, Studio City, Altira Macau, Mocha Clubs, City of Dreams Manila, and City of Dreams Mediterranean) [Results for the Six Months Ended June 30](index=43&type=section&id=%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%E4%B9%8B%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, the Group's net revenue grew by **12.4%** to **HKD 19.96 billion**, and adjusted EBITDA increased by **19.5%** to **HKD 5.366 billion**, with profit attributable to owners of the Company turning from a loss to a profit of **HKD 350.8 million**, and basic earnings per share at **HKD 0.18** | HKD millions | 2025 | 2024 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 19,964.6 | 17,765.6 | 12.4% | | Adjusted EBITDA | 5,365.7 | 4,489.3 | 19.5% | | Profit / (Loss) Attributable to Owners of the Company | 350.8 | (253.2) | 238.5% | | Basic Earnings / (Loss) Per Share Attributable to Owners of the Company (HKD) | 0.18 | (0.13) | 235.6% | [Financial Position](index=43&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) As of June 30, 2025, the Group's total assets were **HKD 84.72 billion**, and total liabilities were **HKD 76.63 billion**, with equity attributable to owners of the Company significantly growing by **2022.1%** to **HKD 974.7 million**, net asset value per share at **HKD 0.4**, and the gearing ratio slightly increasing to **71.9%** | HKD millions | June 30, 2025 | December 31, 2024 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 84,720.8 | 84,749.5 | –0.0% | | Total Liabilities | 76,633.1 | 76,543.0 | 0.1% | | Equity Attributable to Owners of the Company | 974.7 | 45.9 | 2,022.1% | | Net Asset Value Per Share Attributable to Owners of the Company (HKD) | 0.4 | 0.02 | 2,022.1% | | Gearing Ratio (%) | 71.9% | 71.6% | Not applicable | [Net Revenue](index=43&type=section&id=%E6%B7%A8%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's net revenue grew by **12.4%** to **HKD 19.96 billion**, primarily driven by improved performance across both gaming and non-gaming operations, with casino revenue increasing by **13.9%**, and rooms, food and beverage, entertainment retail, and other revenues also showing growth - The Group's net revenue increased by **12.4%** from **HKD 17.77 billion** for the six months ended June 30, 2024, to **HKD 19.96 billion** for the six months ended June 30, 2025[100](index=100&type=chunk) - The increase in net revenue was primarily due to improved performance across both gaming and non-gaming operations[100](index=100&type=chunk) | HKD millions | 2025 | 2024 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Casino Revenue | 16,537.0 | 14,516.6 | 13.9% | | Rooms | 1,669.6 | 1,581.4 | 5.6% | | Food and Beverage | 1,142.5 | 1,076.7 | 6.1% | | Entertainment, Retail and Other | 615.5 | 590.9 | 4.2% | | Total | 19,964.6 | 17,765.6 | 12.4% | [Adjusted EBITDA](index=44&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4EBITDA) For the six months ended June 30, 2025, the Company recorded adjusted EBITDA of **HKD 5.37 billion**, an increase of **19.5%** from **HKD 4.49 billion** in the same period last year, with the increase primarily attributable to improved performance of casino and hotel operations, partially offset by higher operating costs due to increased business activities - The Company recorded adjusted EBITDA of **HKD 5.37 billion** for the six months ended June 30, 2025, compared to **HKD 4.49 billion** for the six months ended June 30, 2024[102](index=102&type=chunk) - The change in adjusted EBITDA was primarily attributable to improved performance of casino and hotel operations for the six months ended June 30, 2025, partially offset by higher operating costs due to increased business activities[102](index=102&type=chunk) [Profit / (Loss) Attributable to Owners of the Company](index=44&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) For the six months ended June 30, 2025, profit attributable to owners of the Company was **HKD 350.8 million**, successfully reversing the loss of **HKD 253.2 million** in the same period last year, with this change primarily due to improved performance of casino and hotel operations, partially offset by higher operating costs, and impairments of **HKD 27.3 million** for Mocha Clubs trademarks and **HKD 5 million** for Altira Macau recognized during this period - Profit attributable to owners of the Company for the six months ended June 30, 2025, was **HKD 350.8 million**, compared to a loss attributable to owners of the Company of **HKD 253.2 million** for the six months ended June 30, 2024[103](index=103&type=chunk) - This change was primarily attributable to improved performance of casino and hotel operations for the six months ended June 30, 2025, partially offset by higher operating costs due to increased business activities[103](index=103&type=chunk) - For the six months ended June 30, 2025, the Group recognized an impairment of **HKD 27.3 million** for Mocha Clubs trademarks and **HKD 5 million** for Altira Macau[103](index=103&type=chunk) [Basic Earnings / (Loss) Per Share Attributable to Owners of the Company](index=45&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E7%9B%88%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company was **HKD 0.18**, a significant improvement from the restated basic loss per share of **HKD 0.13** in the same period last year - For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company was **HKD 0.18**, compared to a restated basic loss per share of **HKD 0.13** for the six months ended June 30, 2024[106](index=106&type=chunk) [Financial and Operating Performance](index=45&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E7%87%9F%E9%81%8B%E8%A1%A8%E7%8F%BE) Melco Resorts & Entertainment, as the Group's primary subsidiary, contributed significantly to financial results, with increases in both total operating revenue and adjusted property EBITDA, while gaming and non-gaming operational performance varied across properties (City of Dreams, Studio City, Altira Macau, Mocha Clubs, City of Dreams Manila, City of Dreams Mediterranean), with City of Dreams and Studio City performing strongly, and City of Dreams Manila facing challenges - Melco Resorts & Entertainment recorded total operating revenue of **USD 2.56 billion** for the six months ended June 30, 2025, an increase of **12.8%** from the same period last year[108](index=108&type=chunk) - Melco Resorts & Entertainment recorded adjusted property EBITDA of **USD 718.7 million** for the six months ended June 30, 2025, an increase of **19.5%** from the same period last year[108](index=108&type=chunk) - City of Dreams Manila's total operating revenue and adjusted property EBITDA both decreased, with gaming operational performance (VIP rolling chip volume, mass market table games drop, gaming machine handle) all showing negative growth[119](index=119&type=chunk)[120](index=120&type=chunk) [Melco Resorts & Entertainment](index=45&type=section&id=%E6%96%B0%E6%BF%A0%E5%8D%9A%E4%BA%9E%E5%A8%9B%E6%A8%82) Melco Resorts & Entertainment, as the Group's majority-owned subsidiary, contributes the vast majority of the Group's financial results, with its total operating revenue at **USD 2.56 billion**, adjusted property EBITDA at **USD 718.7 million**, and net income attributable to Melco Resorts & Entertainment at **USD 49.7 million** for the six months ended June 30, 2025, all showing growth compared to the same period last year - Melco Resorts & Entertainment recorded total operating revenue of **USD 2.56 billion** for the six months ended June 30, 2025, compared to **USD 2.27 billion** for the six months ended June 30, 2024[108](index=108&type=chunk) - Melco Resorts & Entertainment recorded adjusted property EBITDA of **USD 718.7 million** for the six months ended June 30, 2025, compared to **USD 601.6 million** for the same period in 2024[108](index=108&type=chunk) - Net income attributable to Melco Resorts & Entertainment for the six months ended June 30, 2025, was **USD 49.7 million**, compared to **USD 36.6 million** for the same period in 2024[108](index=108&type=chunk) [City of Dreams](index=46&type=section&id=%E6%96%B0%E6%BF%A0%E5%A4%A9%E5%9C%B0) For the six months ended June 30, 2025, City of Dreams' total operating revenue was **USD 1.37 billion**, and adjusted property EBITDA was **USD 421.5 million**, both showing significant growth compared to the same period last year, with VIP rolling chip volume increasing by **9.7%**, mass market table games drop increasing by **13.8%**, and non-gaming revenue also growing steadily - For the six months ended June 30, 2025, City of Dreams' total operating revenue was **USD 1.37 billion**, compared to **USD 1.13 billion** for the same period in 2024[110](index=110&type=chunk) - City of Dreams recorded adjusted property EBITDA of **USD 421.5 million** for the six months ended June 30, 2025, compared to **USD 318.7 million** for the same period in 2024[110](index=110&type=chunk) City of Dreams Gaming Operations Performance (USD millions) | Metric | 2025 | 2024 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | VIP Rolling Chip Volume | 11,540.3 | 10,518.7 | 9.7% | | Mass Market Table Games Drop | 3,342.6 | 2,938.5 | 13.8% | | Gaming Machine Handle | 1,856.3 | 1,792.3 | 3.6% | [Studio City](index=47&type=section&id=%E6%96%B0%E6%BF%A0%E5%BD%B1%E5%BD%97) For the six months ended June 30, 2025, Studio City's total operating revenue was **USD 742.7 million**, and adjusted property EBITDA was **USD 202.5 million**, both showing growth compared to the same period last year, with mass market table games drop slightly increasing by **0.2%**, gaming machine handle increasing by **7.3%**, and Studio City strategically repositioned to focus on premium mass and mass market businesses - For the six months ended June 30, 2025, Studio City's total operating revenue was **USD 742.7 million**, compared to **USD 683.6 million** for the same period in 2024[112](index=112&type=chunk) - Studio City recorded adjusted property EBITDA of **USD 202.5 million** for the six months ended June 30, 2025, compared to **USD 167.2 million** for the same period in 2024[112](index=112&type=chunk) Studio City Gaming Operations Performance (USD millions) | Metric | 2025 | 2024 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Mass Market Table Games Drop | 1,882.1 | 1,878.8 | 0.2% | | Gaming Machine Handle | 1,787.5 | 1,666.7 | 7.3% | - Studio City has been strategically repositioned to focus on premium mas

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Helen's International Holdings Limited reported unaudited consolidated results for the six months ended June 30, 2025, with revenue of RMB 291.1 million and profit attributable to owners of RMB 50.3 million [Interim Results Overview](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%BD) Helen's International Holdings Limited reported unaudited consolidated results for the six months ended June 30, 2025, with revenue of RMB 291.1 million and profit attributable to owners of RMB 50.3 million Key Financial Indicators | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 291,145 | 441,294 | | Profit before income tax | 51,899 | 69,459 | | Profit for the period attributable to owners of the Company | 50,331 | 69,677 | [Business Operations Overview](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E7%87%9F%E9%81%8B%E6%A6%82%E6%B3%81) The group expanded its tavern network to 580 stores by June 30, 2025, with a focus on upgrading direct-operated stores and improving operational efficiency [Tavern Network Distribution](index=2&type=section&id=%E9%85%92%E9%A4%A8%E7%B6%B2%E7%B5%A1%E5%88%86%E4%BD%88) The group's tavern network expanded from 560 stores at the beginning of 2025 to 580 by June 30, 2025, with a plan to restart direct-operated stores in May 2025 - As of June 30, 2025, the total number of taverns increased from **560** at the beginning of 2025 to **580**, further increasing to **583** by August 26, 2025[4](index=4&type=chunk) - The direct-operated tavern plan was relaunched in May 2025, aiming to upgrade store environments, enhance customer experience, and reduce costs by opening new stores in new markets and iterating existing ones[4](index=4&type=chunk) Tavern Network by Type and City Tier | Tavern Type | August 26, 2025 | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Mainland China | | | | | | Tier 1 City Taverns | 36 | 36 | 35 | 37 | | Tier 2 City Taverns | 140 | 140 | 146 | 172 | | Tier 3 and Below City Taverns | 402 | 399 | 375 | 323 | | Taverns outside Mainland China | 5 | 5 | 4 | 5 | | **Total** | **583** | **580** | **560** | **537** | | Direct-operated Taverns | 109 | 109 | 112 | 187 | | Franchised Taverns | 39 | 39 | 42 | 67 | | "Hi-Beer Partner" Taverns | 435 | 432 | 406 | 283 | | **Total** | **583** | **580** | **560** | **537** | [Operating Metrics](index=3&type=section&id=%E7%87%9F%E9%81%8B%E6%8C%87%E6%A8%99) Average daily turnover per direct-operated and franchised tavern increased to RMB 8.3 thousand in H1 2025, while "Hi-Beer Partner" taverns saw a decrease Average Daily Turnover per Tavern (RMB thousands) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | **Average Daily Turnover per Direct-operated and Franchised Tavern** | | | | Tier 1 Cities | 9.0 | 8.7 | | Tier 2 Cities | 8.8 | 7.4 | | Tier 3 and Below Cities | 7.7 | 7.2 | | **Overall** | **8.3** | **7.5** | | **Average Daily Turnover per "Hi-Beer Partner" Tavern** | | | | Premium Stores | 5.0 | 6.1 | | Quality Stores | 4.0 | 5.3 | | Boutique Stores | 3.6 | 4.7 | | **Overall** | **4.2** | **5.4** | [Same-Store Performance](index=4&type=section&id=%E5%90%8C%E5%BA%97%E8%A1%A8%E7%8F%BE) Same-store average daily turnover decreased by 17.6% in H1 2025, but store-level operating profit margin improved in Q2 due to enhanced product gross margin and cost reductions - Same-store average daily turnover decreased by **17.6%** in H1 2025, from **RMB 10.9 thousand** in 2024 to **RMB 9.0 thousand**[10](index=10&type=chunk) - The store-level operating profit margin for same-stores in Q2 2025 improved compared to the same period last year, driven by enhanced product gross margin, reduced rental costs, and improved labor efficiency[9](index=9&type=chunk) - The company is actively implementing measures to restore same-store performance, including deepening partner incentives, strengthening organizational structure, optimizing product matrix, and enhancing marketing systems[9](index=9&type=chunk) Same-Store Operating Metrics (RMB thousands) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Number of Same-Stores | 142 | - | | Same-Store Turnover | 229,239.53 | 279,116.30 | | Same-Store Turnover Growth Rate (%) | -17.9 | - | | Same-Store Average Daily Turnover | 1,274.40 | 1,546.22 | | Same-Store Average Daily Turnover Growth Rate (%) | -17.6 | - | | Same-Store Average Daily Turnover per Store | 9.0 | 10.9 | | Same-Store Average Daily Turnover per Store Growth Rate (%) | -17.6 | - | [Contribution Gross Profit from Signature Products](index=5&type=section&id=%E7%89%B9%E8%89%B2%E7%94%A2%E5%93%81%E8%B2%A2%E7%8D%BB%E6%AF%9B%E6%94%B6%E7%9B%8A) Contribution gross profit margins for both Helen's own-brand and third-party alcoholic beverages increased in H1 2025, driven by supply chain management and economies of scale - Contribution gross profit margin for own-brand alcoholic beverages increased from **78.3%** in 2024 to **80.2%** in 2025[12](index=12&type=chunk) - Contribution gross profit margin for third-party brand alcoholic beverages increased from **53.7%** in 2024 to **57.8%** in 2025[12](index=12&type=chunk) - The improvement in contribution gross profit margin is primarily attributed to enhanced scientific supply chain management capabilities and brand effects from economies of scale[11](index=11&type=chunk) Contribution Gross Profit and Margin (RMB thousands) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | **All Helen's Own-Brand Alcoholic Beverages** | | | | Contribution Gross Profit | 73,777 | 124,458 | | Contribution Gross Profit Margin (%) | 80.2% | 78.3% | | **All Third-Party Brand Alcoholic Beverages** | | | | Contribution Gross Profit | 28,014 | 42,773 | | Contribution Gross Profit Margin (%) | 57.8% | 53.7% | [Financial Performance Analysis](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) In H1 2025, the company's revenue decreased to RMB 291.1 million, but it achieved a net profit of RMB 50.3 million, with future plans to expand direct-operated stores and explore new business models [Performance Review and Outlook](index=6&type=section&id=%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) H1 2025 revenue decreased to RMB 291.1 million due to fewer existing stores and lower same-store daily sales, yet the company achieved RMB 50.3 million in net profit and plans future network expansion and new model exploration - H1 2025 revenue was **RMB 291.1 million**, a decrease from **RMB 441.3 million** in H1 2024, primarily due to a reduction in the number of existing stores and lower same-store daily sales[13](index=13&type=chunk) - Profit for the period attributable to owners of the Company was **RMB 50.3 million**, demonstrating strong profitability despite a weak market[13](index=13&type=chunk) - Looking ahead, the company plans to solidify and expand its direct-operated tavern network, develop its franchise model through optimizing the "Hi-Beer Partner" model, and explore new concepts such as "third space" taverns[14](index=14&type=chunk) [Revenue Analysis](index=7&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) H1 2025 revenue decreased by 34.0% to RMB 291.1 million, primarily due to fewer existing stores and lower same-store daily sales, with a shift in revenue mix - Revenue decreased by **34.0%** year-on-year to **RMB 291.1 million**, mainly due to a reduction in the number of existing stores and lower same-store daily sales[15](index=15&type=chunk) - Revenue from franchised operations decreased, but revenue from selling products to "Hi-Beer Partner" taverns increased, partially offsetting the decline in franchised service revenue[15](index=15&type=chunk) Revenue by Source (RMB thousands) | Revenue Source | 2025 Revenue (RMB'000) | 2025 % of Total Revenue | 2024 Revenue (RMB'000) | 2024 % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Helen's Own-Brand Products | 128,264 | 44.1 | 222,568 | 50.4 | | Third-Party Brand Alcoholic Beverages | 48,462 | 16.6 | 79,692 | 18.1 | | Other Products and Revenue | 6,400 | 2.2 | 8,674 | 2.0 | | **Subtotal Direct-operated Business Revenue** | **183,126** | **62.9** | **310,934** | **70.5** | | Revenue from Franchised Operations | 108,019 | 37.1 | 130,360 | 29.5 | | **Total** | **291,145** | **100** | **441,294** | **100** | - Other income increased by **250.0%** to **RMB 0.7 million**, primarily due to rental income generated from leasing out certain office building assets[18](index=18&type=chunk) [Cost and Expense Analysis](index=8&type=section&id=%E6%88%90%E6%9C%AC%E5%8F%8A%E8%B2%BB%E7%94%A8%E5%88%86%E6%9E%90) In H1 2025, the company's various costs and expenses significantly decreased, including raw materials, employee benefits, depreciation, short-term leases, energy consumption, travel, listing expenses, advertising, and other expenses, primarily due to reduced revenue, fewer employees, optimized tavern network adjustments, and refined management - Cost of raw materials and consumables used decreased by **27.1%** to **RMB 116.1 million**, mainly due to reduced revenue and quantity of raw materials required[19](index=19&type=chunk) - Employee benefits and human resources service expenses decreased by **36.2%** to **RMB 61.6 million**, primarily due to a reduction in the number of employees[20](index=20&type=chunk) - Depreciation of right-of-use assets decreased by **47.3%** to **RMB 16.7 million**, and depreciation of property, plant, and equipment decreased by **50.6%** to **RMB 15.9 million**, mainly due to lease terminations and a reduction in the number of taverns[21](index=21&type=chunk)[22](index=22&type=chunk) - Short-term lease and other related expenses decreased by **47.6%** to **RMB 9.7 million**, energy consumption expenses decreased by **50.5%** to **RMB 4.8 million**, and advertising and promotion expenses decreased by **72.8%** to **RMB 2.2 million**, all primarily attributable to tavern network optimization, fewer employees, and refined management[25](index=25&type=chunk)[26](index=26&type=chunk)[29](index=29&type=chunk) - There were no secondary listing expenses in H1 2025, compared to **RMB 12.2 million** in the same period of 2024[28](index=28&type=chunk) - Other net losses amounted to **RMB 4.2 million**, primarily including a gain of **RMB 3.5 million** from tavern optimization adjustments and foreign exchange losses of **RMB 8.0 million**[32](index=32&type=chunk) - Finance income decreased to **RMB 19.2 million**, mainly due to a reduction in bank deposit amounts; finance expenses decreased by **37.7%** to **RMB 3.8 million**, primarily due to a decrease in lease liabilities[33](index=33&type=chunk)[34](index=34&type=chunk) [Profit and Taxation](index=10&type=section&id=%E5%88%A9%E6%BD%A4%E5%8F%8A%E7%A8%85%E5%8B%99) Profit before income tax for H1 2025 was RMB 51.9 million, with the profit margin increasing to 17.8%, while income tax expense was RMB 1.6 million due to expired deferred tax assets - Profit before income tax was **RMB 51.9 million** (H1 2024: RMB 69.5 million), with the profit before income tax margin increasing from **15.7%** to **17.8%**[35](index=35&type=chunk) - Income tax expense was **RMB 1.6 million** (H1 2024: income tax credit of RMB 0.2 million), primarily due to the expiration of unused tax losses previously recognized as deferred tax assets[36](index=36&type=chunk) [Assets, Liabilities and Liquidity](index=11&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E5%8F%8A%E6%B5%81%E5%8B%95%E6%80%A7) The company's assets saw a decrease in property, plant, and equipment but an increase in investment properties, while liabilities decreased due to fewer leased taverns, maintaining stable liquidity [Asset Position](index=11&type=section&id=%E8%B3%87%E7%94%A2%E7%8B%80%E6%B3%81) Property, plant, and equipment decreased to RMB 180.0 million, while investment properties increased to RMB 56.9 million, reflecting asset reclassification and rental income generation - Property, plant, and equipment decreased to **RMB 180.0 million**, mainly due to depreciation and partial reclassification to investment properties[37](index=37&type=chunk) - Investment properties increased to **RMB 56.9 million**, primarily due to further leasing out office building assets[40](index=40&type=chunk) - Inventory balance remained largely stable at **RMB 21.3 million**, but inventory turnover days increased from **23.3 days** to **32.1 days**[45](index=45&type=chunk) - Prepayments, deposits, and other receivables decreased to **RMB 92.4 million**, mainly due to a reduction in rental deposits[46](index=46&type=chunk) - New financial assets at fair value through profit or loss of **RMB 55.0 million** were added, used to optimize capital allocation by purchasing low-risk bond products[48](index=48&type=chunk) [Liability Position](index=13&type=section&id=%E8%B2%A0%E5%82%B5%E7%8B%80%E6%B3%81) Lease liabilities decreased to RMB 125.8 million due to fewer taverns, and trade payables decreased but with extended turnover days, indicating improved supplier management - Lease liabilities decreased to **RMB 125.8 million**, primarily due to a reduction in the number of taverns[50](index=50&type=chunk) - Trade payables decreased to **RMB 25.8 million**, mainly due to reduced procurement volumes resulting from lower revenue[51](index=51&type=chunk) - Trade payables turnover days increased from **34.3 days** to **42.3 days**, indicating improved supplier management capabilities under refined operational strategies[51](index=51&type=chunk) - Other payables and accrued expenses decreased to **RMB 9.2 million**, primarily due to reduced product procurement[52](index=52&type=chunk) [Liquidity and Capital Resources](index=13&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) Cash and bank balances decreased to RMB 663.3 million due to dividend payments, but the company maintains stable liquidity and expects to fund future expansion through operating income and potential financing - Cash and bank balances decreased to **RMB 663.3 million** (December 31, 2024: RMB 806.4 million), primarily due to the payment of the 2024 final dividend[49](index=49&type=chunk) - The company maintains a stable liquidity position and has sufficient available bank facilities[53](index=53&type=chunk) - Future working capital is expected to be funded by tavern operating income, with potential additional funding through equity issuance or debt financing to support business expansion[54](index=54&type=chunk) [Indebtedness and Capital Structure](index=14&type=section&id=%E5%82%B5%E9%A0%85%E5%8F%8A%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) The company incurred RMB 30.0 million in new secured bank borrowings, with total capital expenditure decreasing to RMB 3.9 million, reflecting a shift towards an asset-light platform model - As of June 30, 2025, new secured bank borrowings of **RMB 30.0 million** were incurred[55](index=55&type=chunk) - Total capital expenditure decreased to **RMB 3.9 million**, primarily due to the group's active transformation towards an asset-light platform company model[59](index=59&type=chunk) - The capital-to-debt ratio was **3.0%** (June 30, 2024: nil)[60](index=60&type=chunk) - As of June 30, 2025, there were no significant contingent liabilities or capital commitments[57](index=57&type=chunk)[58](index=58&type=chunk) [Corporate Governance and Other Important Matters](index=15&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E8%88%87%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) The company manages foreign exchange risks, has no significant investments or litigation, maintains competitive employee policies, and generally complies with corporate governance codes, with a proposed interim dividend [Foreign Exchange Risk and Asset Pledges](index=15&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA%E8%88%87%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) The company faces foreign exchange risk from HKD and USD denominated assets without hedging, and certain buildings are pledged for bank borrowings - The company is primarily exposed to foreign exchange risk from assets denominated in **HKD** and **USD**, with no hedging activities undertaken during the reporting period[61](index=61&type=chunk) - As of June 30, 2025, certain buildings were pledged for bank borrowings[62](index=62&type=chunk) [Significant Investments, Acquisitions and Disposals](index=15&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) The group made no significant investments, acquisitions, or disposals during the reporting period and has no specific plans for major investments, while continuously seeking new business opportunities - During the reporting period, the group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[63](index=63&type=chunk) - Apart from the expansion plans disclosed in the prospectus, there are no specific plans for major investments or acquisitions, but the company will continue to seek new business development opportunities[63](index=63&type=chunk) [Employees and Remuneration Policy](index=15&type=section&id=%E5%93%A1%E5%B7%A5%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had 576 employees and 814 outsourced personnel, offering competitive remuneration, performance bonuses, career development, and training - As of June 30, 2025, the company had **576 employees** and **814 outsourced personnel**[64](index=64&type=chunk) - The company offers competitive remuneration and benefits, discretionary performance bonuses, career development paths, and talent training systems[64](index=64&type=chunk) - Total employee benefits and human resources service expenses amounted to **RMB 61.6 million**[64](index=64&type=chunk) [Compliance with Corporate Governance Code](index=38&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87%E9%81%B5%E5%AE%88%E6%83%85%E6%B3%81) The company complied with all applicable Corporate Governance Code provisions during the period, except for the combined roles of Chairman and CEO, which the board believes enhances leadership and efficiency - The company complied with all applicable provisions of the Corporate Governance Code during the reporting period, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Xu Bingzhong, which deviates from Code Provision C.2.1[113](index=113&type=chunk)[114](index=114&type=chunk) - The Board believes that the combined roles facilitate strong and effective leadership and efficient strategy execution, with sufficient checks and balances provided by three independent non-executive directors[114](index=114&type=chunk) [Model Code for Securities Transactions by Directors](index=39&type=section&id=%E8%91%A3%E4%BA%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Model Code for securities transactions by directors and employees with inside information, with all directors confirming compliance during the reporting period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its code of conduct for securities transactions by directors and employees with inside information[116](index=116&type=chunk) - All directors confirmed their compliance with the Model Code throughout the reporting period, and no instances of non-compliance by employees were identified[116](index=116&type=chunk)[117](index=117&type=chunk) [Dealings in Listed Securities](index=39&type=section&id=%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period, and no treasury shares were held as of June 30, 2025 - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[118](index=118&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[118](index=118&type=chunk) [Major Litigation](index=39&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F) The company was not involved in any major litigation or arbitration during the reporting period, and directors are unaware of any pending or threatened significant claims - During the reporting period, the company was not involved in any major litigation or arbitration[119](index=119&type=chunk) - The directors are also unaware of any pending or threatened major litigation or claims against the group[119](index=119&type=chunk) [Audit Committee](index=40&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, reviewed and confirmed the interim financial results for H1 2025 comply with accounting standards and disclosure requirements - The Audit Committee is composed of three independent non-executive directors, in compliance with the terms of reference under the Listing Rules[120](index=120&type=chunk) - The Audit Committee has reviewed and confirmed that the interim financial results comply with accounting standards, rules, and regulations, and that appropriate disclosures have been made[120](index=120&type=chunk) [Interim Dividend](index=40&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board recommended an interim dividend of RMB 0.1051 per ordinary share for H1 2025, payable around September 30, 2025, with a record date of September 19, 2025 - The Board recommended an interim dividend of **RMB 0.1051** per ordinary share for the six months ended June 30, 2025, to be paid from the share premium account[121](index=121&type=chunk) - The record date for determining eligibility for the interim dividend is September 19, 2025[121](index=121&type=chunk) - The interim dividend will be paid on or about September 30, 2025, with Hong Kong shareholders receiving HKD and Singapore shareholders receiving SGD[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) [Events After Reporting Period](index=42&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The company is not aware of any significant events after the reporting period from June 30, 2025, to the date of this announcement - The company is not aware of any significant events after the reporting period from June 30, 2025, to the date of this announcement[125](index=125&type=chunk) [Publication of Announcement](index=42&type=section&id=%E5%85%AC%E5%91%8A%E5%88%8A%E7%99%BB) This announcement has been published on the HKEX, SGX, and the company's website, with the full interim report to follow - This announcement has been published on the websites of the Stock Exchange of Hong Kong Limited (HKEX), Singapore Exchange Securities Trading Limited (SGX), and the company[126](index=126&type=chunk) - The interim report, containing all information required by the Listing Rules, will be published on the HKEX, SGX, and the company's website in due course[126](index=126&type=chunk) [Notes to Financial Statements](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the interim condensed consolidated financial statements, covering accounting policies, segment information, and specific financial line items [Interim Condensed Consolidated Statement of Comprehensive Income](index=16&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This section presents the interim condensed consolidated statement of comprehensive income for the six months ended June 30, 2025 and 2024, detailing revenue, expenses, profit, and total comprehensive income Interim Condensed Consolidated Statement of Comprehensive Income (RMB thousands) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 291,145 | 441,294 | | Other income | 681 | 237 | | Raw materials and consumables used | (116,074) | (159,342) | | Employee benefits and human resources service expenses | (61,603) | (96,532) | | Depreciation of right-of-use assets | (16,713) | (31,672) | | Depreciation of property, plant and equipment | (15,905) | (32,231) | | Depreciation of investment properties | (1,698) | — | | Amortisation of intangible assets | (9) | (9) | | Short-term lease and other related expenses | (9,718) | (18,511) | | Energy consumption expenses | (4,813) | (9,682) | | Travel and related expenses | (2,387) | (4,830) | | Listing expenses | — | (12,152) | | Advertising and promotion expenses | (2,204) | (8,130) | | Other expenses | (20,090) | (30,042) | | Net reversal of impairment loss on trade receivables / (provision) | 19 | (414) | | Other net (losses) / gains | (4,161) | 7,789 | | Finance income | 19,189 | 29,797 | | Finance expenses | (3,760) | (6,111) | | Profit before income tax | 51,899 | 69,459 | | Income tax (expense) / credit | (1,568) | 218 | | Profit for the period attributable to owners of the Company | 50,331 | 69,677 | | Exchange differences | (10,423) | 5,249 | | Total comprehensive income for the period | 39,908 | 74,926 | | Earnings per share attributable to owners of the Company (Basic) | 0.040 | 0.055 | | Earnings per share attributable to owners of the Company (Diluted) | 0.040 | 0.055 | [Interim Condensed Consolidated Statement of Financial Position](index=18&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This section presents the interim condensed consolidated statement of financial position as of June 30, 2025 and December 31, 2024, detailing assets, liabilities, and equity Interim Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 430,684 | 459,772 | | Total Current Assets | 827,293 | 916,203 | | **Total Assets** | **1,257,977** | **1,375,975** | | **Equity** | | | | Total Equity | 997,805 | 1,118,791 | | **Liabilities** | | | | Total Non-current Liabilities | 110,907 | 133,113 | | Total Current Liabilities | 149,265 | 124,071 | | **Total Liabilities** | **260,172** | **257,184** | | **Total Equity and Liabilities** | **1,257,977** | **1,375,975** | [General Information](index=20&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company was incorporated in the Cayman Islands on January 16, 2018, operating taverns and franchising in China and Hong Kong, with Mr. Xu Bingzhong as the ultimate controlling shareholder - The company was incorporated in the Cayman Islands on **January 16, 2018**, and primarily engages in tavern operations and franchising business in Mainland China and Hong Kong[70](index=70&type=chunk) - The ultimate controlling shareholder is Mr. Xu Bingzhong[70](index=70&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=20&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim financial information is prepared in accordance with HKAS 34 and consistent with 2024 annual report policies, with no significant impact expected from new or revised standards - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and should be read in conjunction with the 2024 annual report[71](index=71&type=chunk) - Except for the adoption of revised Hong Kong Financial Reporting Standards effective January 1, 2025, the accounting policies applied are consistent with those used in the 2024 financial statements[71](index=71&type=chunk) - Management does not expect new or revised standards not yet effective to have any significant impact on the group's financial position and operating results[72](index=72&type=chunk) [Revenue and Segment Information](index=22&type=section&id=%E6%94%B6%E5%85%A5%E5%92%8C%E5%88%86%E9%83%A8%E4%BF%A1%E6%81%AF) The group manages its tavern operations and franchising as a single reportable segment, with revenue disaggregated by service line, recognition timing, and geographical location, primarily from mainland China - The group is managed as a single reportable operating segment, primarily engaged in tavern operations and franchising business[74](index=74&type=chunk) Revenue by Service Line and Recognition Timing (RMB thousands) | Revenue Source | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Tavern Operations | 183,126 | 310,934 | | Franchising | 108,019 | 130,360 | | **Total** | **291,145** | **441,294** | | **Disaggregated by Revenue Recognition Timing** | | | | At a point in time | 275,989 | 397,173 | | Over time | 15,156 | 44,121 | | **Total** | **291,145** | **441,294** | Revenue by Geographical Location (RMB thousands) | Geographical Location | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Mainland China | 278,309 | 433,762 | | Outside Mainland China | 12,836 | 7,532 | | **Total** | **291,145** | **441,294** | [Other Income and Net Losses](index=23&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) Other income primarily includes government grants and rental income, while net losses are influenced by tavern optimization adjustments and foreign exchange losses Other Income (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Government grants | 105 | 237 | | Rental income | 576 | — | | **Total** | **681** | **237** | Other Net Losses (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Gain / (loss) on disposal of property, plant and equipment | 456 | (10,498) | | Loss on lease deposits | (655) | (4,725) | | Penalties and compensation for early termination | (446) | (2,661) | | Gain on lease termination | 4,192 | 9,435 | | Exchange (losses) / gains | (8,043) | 16,238 | | Fair value change of financial assets at fair value through profit or loss | 335 | — | | **Total** | **(4,161)** | **7,789** | [Finance Income and Expenses](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%E5%8F%8A%E8%B2%BB%E7%94%A8) Finance income primarily comes from bank deposit interest, decreasing due to lower deposits, while finance expenses, mainly from lease liabilities, decreased due to reduced lease obligations Finance Income and Expenses (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | **Finance Income** | | | | Interest income from bank deposits | 19,189 | 29,797 | | **Finance Expenses** | | | | Interest expense on lease liabilities | (3,548) | (6,111) | | Interest expense on borrowings | (212) | — | | **Total** | **(3,760)** | **(6,111)** | [Income Tax Expense](index=25&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for H1 2025 was RMB 1.6 million, compared to a credit in H1 2024, mainly due to the expiration of previously recognized deferred tax assets Income Tax Expense / Credit (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Current income tax | — | 632 | | Deferred income tax | (1,568) | (414) | | **Income Tax (Expense) / Credit** | **(1,568)** | **218** | [Earnings Per Share](index=25&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for H1 2025 decreased to RMB 0.040, with diluted EPS being consistent as there were no dilutive potential ordinary shares Earnings Per Share Calculation | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB'000) | 50,331 | 69,677 | | Weighted average number of ordinary shares outstanding (thousands) | 1,261,145 | 1,265,478 | | **Basic Earnings Per Share (RMB)** | **0.040** | **0.055** | - For the six months ended June 30, 2025 and 2024, there were no dilutive potential ordinary shares, thus diluted earnings per share were consistent with basic earnings per share[85](index=85&type=chunk) [Dividends and Events After Reporting Period](index=26&type=section&id=%E8%82%A1%E6%81%AF%E5%8F%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) In H1 2025, the company paid dividends of approximately RMB 145.7 million, and the Board approved a proposed interim dividend of RMB 0.1051 per ordinary share - During H1 2025, the company declared and paid dividends to shareholders of approximately **RMB 145,672,000**[86](index=86&type=chunk) - The Board approved a proposed interim dividend of **RMB 0.1051** per ordinary share for the six months ended June 30, 2025, on August 29, 2025[86](index=86&type=chunk) [Property, Plant and Equipment](index=26&type=section&id=%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 net book value of property, plant, and equipment decreased to RMB 179.9 million as of June 30, 2025, primarily due to depreciation and reclassification to investment properties Property, Plant and Equipment (RMB thousands) | Item | December 31, 2024 (RMB'000) | June 30, 2025 (RMB'000) | | :--- | :--- | :--- | | Net book value at beginning of period | 217,911 | 217,911 | | Additions | — | 3,908 | | Transferred to investment properties | — | (25,628) | | Depreciation | — | (15,905) | | Disposals | — | (123) | | Exchange adjustments | — | (196) | | **Net book value at end of period** | **217,911** | **179,967** | [Investment Properties](index=27&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) The net book value of investment properties increased to RMB 56.9 million as of June 30, 2025, mainly due to reclassification from property, plant, and equipment and generating rental income Investment Properties (RMB thousands) | Item | December 31, 2024 (RMB'000) | June 30, 2025 (RMB'000) | | :--- | :--- | :--- | | Net book value at beginning of period | 33,001 | 33,001 | | Transferred from property, plant and equipment | — | 25,628 | | Depreciation | — | (1,698) | | **Net book value at end of period** | **33,001** | **56,931** | - Rental income from operating leases was **RMB 576 thousand**, and direct operating expenses from properties generating rental income were **RMB 51 thousand**[89](index=89&type=chunk) [Prepayments, Deposits and Other Receivables](index=28&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E3%80%81%E6%8A%BC%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) The non-current portion decreased to RMB 28.4 million, while the current portion increased to RMB 64.0 million, with an overall reduction primarily due to decreased rental deposits Prepayments, Deposits and Other Receivables (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | **Non-current Portion** | | | | Rental and other deposits | 9,908 | 13,805 | | Prepayment to a related party | 5,888 | 7,455 | | Other prepayments | 12,641 | 16,728 | | **Subtotal** | **28,437** | **37,988** | | **Current Portion** | | | | Rental and other deposits | 7,437 | 4,112 | | Prepayments | 11,933 | 12,505 | | Other tax receivables | 25,725 | 28,782 | | Other prepayments | 6,890 | 6,248 | | Others | 11,996 | 9,603 | | **Subtotal** | **63,981** | **61,250** | [Financial Assets at Fair Value Through Profit or Loss](index=29&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) The company recognized new financial assets at fair value through profit or loss of RMB 55.0 million as of June 30, 2025, for optimizing capital allocation by purchasing low-risk bond products Financial Assets at Fair Value Through Profit or Loss (RMB thousands) | Item | June 30, 2025 (RMB'000) | | :--- | :--- | | At beginning of period | — | | Additions | 54,718 | | Fair value changes recognized in profit or loss | 335 | | Exchange differences | (4) | | **At end of period** | **55,049** | [Inventories](index=30&type=section&id=%E5%AD%98%E8%B2%A8) Total inventories amounted to RMB 21.3 million as of June 30, 2025, primarily comprising alcoholic beverages, food, and consumables, with RMB 116.1 million recognized as expense Inventories (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Alcoholic beverages | 15,230 | 16,359 | | Food | 5,490 | 3,095 | | Consumables | 540 | 668 | | **Total** | **21,260** | **20,122** | - During the six months ended June 30, 2025, approximately **RMB 116,074 thousand** of inventory costs were recognized as expenses[92](index=92&type=chunk) [Trade Receivables](index=30&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Net trade receivables were RMB 23.7 million as of June 30, 2025, mainly from sales of goods and franchising services, with a credit period of 360 days Trade Receivables (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade receivables | 40,667 | 45,355 | | Less: Loss allowance | (16,929) | (16,948) | | **Net** | **23,738** | **28,407** | - Trade receivables primarily arise from the sale of goods and provision of franchising services to franchised partners, with a credit period of **360 days** granted[93](index=93&type=chunk) [Cash and Bank Balances](index=31&type=section&id=%E7%8F%BE%E9%87%91%E5%8F%8A%E9%8A%80%E8%A1%8C%E7%B5%90%E9%A4%98) Total cash and bank balances decreased to RMB 663.3 million as of June 30, 2025, from RMB 806.4 million at December 31, 2024, primarily due to dividend payments Cash and Bank Balances (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Cash and cash equivalents | 539,929 | 131,802 | | Time deposits with original maturity over three months | 120,703 | 671,832 | | Restricted cash | 2,633 | 2,790 | | **Total** | **663,265** | **806,424** | [Share Capital](index=32&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the number of issued ordinary shares remained at 1,260,816,267, with a nominal value of USD 0.101 per share and share capital of RMB 1 thousand Share Capital | Item | Number of Ordinary Shares | Nominal Value of Ordinary Shares (USD) | Share Capital (RMB) | | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 1,260,816,267 | 0.101 | 1 | | As of June 30, 2025 | 1,260,816,267 | 0.101 | 1 | [Leases](index=32&type=section&id=%E7%A7%9F%E8%B3%83) The group leases various properties with typical terms of 5 to 8 years, with right-of-use assets at RMB 91.7 million and total lease liabilities at RMB 125.8 million, both decreasing due to depreciation and lease terminations - The group leases various properties, typically for fixed periods of **5 to 8 years**, and lease agreements do not contain variable lease payment terms linked to sales[97](index=97&type=chunk) Right-of-Use Assets and Lease Liabilities (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | **Right-of-Use Asset Properties** | | | | Net book value at beginning of period | 95,676 | 182,779 | | Additions | 12,361 | 55,263 | | Depreciation expense | (16,713) | (60,786) | | Impairment loss | — | (23,833) | | Exchange differences | 654 | 24 | | Derecognition due to lease termination | (248) | (57,771) | | **Net book value at end of period** | **91,730** | **95,676** | | **Lease Liabilities** | | | | Non-current portion | 72,798 | 93,847 | | Current portion | 52,971 | 51,585 | | **Total** | **125,769** | **145,432** | Lease-Related Cash Flows (RMB thousands) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Depreciation expense of right-of-use assets | 16,713 | 31,672 | | Finance expenses on lease liabilities | 3,548 | 6,111 | | **Total Cash Outflow for Leases** | | | | Short-term lease payments for staff dormitories | 2,845 | 6,349 | | Payments for principal portion of lease liabilities | 27,584 | 41,442 | | Payments for interest portion of lease liabilities | 3,548 | 6,111 | [Trade Payables](index=35&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Trade payables decreased to RMB 25.8 million as of June 30, 2025, primarily due to reduced procurement volumes resulting from lower revenue Trade Payables (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade payables | 25,847 | 28,744 | | **Aging Analysis (0 to 90 days)** | **25,847** | **28,744** | [Other Payables and Accrued Expenses](index=35&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) The non-current portion was RMB 21.7 million and the current portion was RMB 9.2 million, with an overall decrease mainly due to reduced product procurement Other Payables and Accrued Expenses (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | **Non-current Portion** | | | | Refundable deposits from franchised partners | 21,742 | 18,048 | | **Subtotal** | **21,742** | **18,048** | | **Current Portion** | | | | Salaries, employee benefits and human resources services payable | 7,148 | 8,897 | | Others | 2,007 | 3,751 | | **Subtotal** | **9,155** | **12,648** | [Borrowings](index=36&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the group had RMB 30.0 million in secured bank borrowings, collateralized by certain buildings at an annual interest rate of 3.10% Borrowings (RMB thousands) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Secured and pledged | 30,000 | — | - The borrowings are secured by certain buildings and guaranteed by certain subsidiaries of the group, with an annual interest rate of **3.10%**[108](index=108&type=chunk) [Related Party Transactions](index=36&type=section&id=%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) The group engages in related party transactions with its controlling shareholder, Mr. Xu Bingzhong, and his indirectly owned companies, including purchases of property, plant, and equipment and receivables - Related parties include Mr. Xu Bingzhong, the controlling shareholder, and Shenzhen Jiangzhu Technology Co., Ltd. and ZCYF (HK) LIMITED, in which he indirectly holds a **25%** equity interest[111](index=111&type=chunk) Related Party Transactions and Balances (RMB thousands) | Transaction Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Purchase of property, plant and equipment | 2,094 | 1,027 | | **Related Party Balances** | | | | Amount due from a related party (Shenzhen Jiangzhu Technology Co., Ltd.) | 5,888 | 7,455 |

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。 Modern Chinese Medicine Group Co., Ltd. 現 代 中 藥 集 團 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） （股份代號：1643） 截至2025年6月30日止六個月之中期業績公告 財務摘要 現代中藥集團有限公司（「本公司」，連同其附屬公司統稱為「本集團」）董事（「董事」）會（「董事會」）謹 此於下文載列本公司截至2025年6月30日止六個月（「本期間」）的未經審核簡明綜合業績概要連同截至 2024年6月30日止六個月（「上同期」）的比較數字。 - 1 - • 收益由上同期的約人民幣76.6百萬元減少至本期間的約人民幣64.8百萬元，跌幅約15.4%。 • 毛利由上同期的約人民幣21.7百萬元減少至本期間的約人民幣16.2百萬元，跌幅約25.3%。 • 本公司擁有人應佔盈利本期間為人民幣2.5百萬元，而上同期則錄得虧損人民幣6.9 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部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。 承董事會命 美的集團股份有限公司 董事長、執行董事兼總裁 方洪波先生 香港，2025年8月29日 於本公告日期，董事會成員包括(i)執行董事方洪波先生、王建國先生、顧炎民 博士、管金偉先生及張添博士；(ii)非執行董事趙軍先生；及(iii)獨立非執行董事 許定波博士、肖耿博士、劉俏博士及邱鋰力博士。 Midea Group Co., Ltd. 美的集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：0300） 截至2025年6月30日止六個月的 中期業績公告 美的集團股份有限公司（「本公司」，及其附屬公司「本集團」）董事（「董事」）會 （「董事會」）謹此宣佈本集團截至2025年6月30日止六個月的未經審核綜合業績。 本公告載有本公司2025年中期報告（「2025年中期報告」）全文，並符合香港聯合交 易所有限公司（「香港聯交所」）證券上市規則有關中期業績初步公告附載資料的相 關規定。 ...