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，並表明概不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。 Fantasia Holdings Group Co., Limited 花樣年控股集團有限公 司 （於開曼群島註冊成立之有限公司） （股份代 號：1777） 截至2025年6月30日止六個月 未經審核中期業績公告 財務摘要 1 – 本集團收入約為人民幣18.83億元，較去年同期增加約14.8%。 – 歸屬於本公司擁有人的虧損約為人民幣31.71億元，較去年同期增加虧損約 0.3%。 – 於2025年6月30日，本集團在建及待建項目土地儲備建築面積為約7,263,455平 方米。 – 本集團期內銷售及分銷費用以及行政費用為約人民幣3.22億元，較去年同期 減少約17.8%。 – 董事會不建議就截至2025年6月30日止期間派發中期股息。 花樣年控股集團有限公司（以下稱「花樣年」或「本公司」）董事（「董事」）會（「董事會」） 宣佈本公司及其附屬公司（統稱「本集團」）截至2025年6月30日止六個月（「期內」）的 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 RIVERINE CHINA HOLDINGS LIMITED 浦江中國控股有限公司 （ 於開曼群島註冊成立的有限公司 ） （股份代號：1417） 截至2025年6月30日止六個月的 中期業績公告 業績 截至2025年6月30日止六個月 董事會欣然宣佈浦江中國控股有限公司及其附屬公司截至2025年6月30日止六個月 的未經審核簡明綜合業績連同上一期間的比較數字如下： 中期簡明綜合損益表 | | | 2025年 | 2024年 | | --- | --- | --- | --- | | | | （未經審核）（未經審核） | | | | 附註 | 人民幣千元 | 人民幣千元 | | 收益 | 4 | 517,161 | 455,473 | | 所提供服務成本 | | (462,123) | (400,155) | | 毛利 | | 55,038 | 55,318 | | 其他收入及收益 | 4 | 8,75 ...

Financial Performance - For the six months ended June 30, 2025, the company reported revenue of RMB 10,899 thousand, compared to no revenue in the same period of 2024[9] - Other income and gains decreased to RMB 12,102 thousand from RMB 35,701 thousand year-on-year, representing a decline of approximately 66.1%[9] - The company recorded a pre-tax loss of RMB 339,573 thousand, which is an increase of 36% compared to a pre-tax loss of RMB 249,636 thousand in 2024[9] - The net loss for the period was RMB 340,653 thousand, compared to a net loss of RMB 249,636 thousand in the previous year, indicating a year-on-year increase of 36.4%[9] - Basic and diluted loss per share was RMB 0.71, compared to RMB 0.52 in the same period of 2024[9] Assets and Liabilities - The total non-current assets amounted to RMB 1,261,034 thousand, a slight decrease from RMB 1,285,103 thousand as of December 31, 2024[10] - Current assets decreased significantly to RMB 281,657 thousand from RMB 655,129 thousand, indicating a reduction of approximately 57.0%[10] - The total current liabilities increased to RMB 881,452 thousand from RMB 839,420 thousand, reflecting a rise of about 5.0%[10] - The total equity decreased to RMB 177,634 thousand from RMB 529,324 thousand, showing a decline of approximately 66.5%[10] - The net current liabilities reached RMB 599,795,000, compared to RMB 184,291,000 in the previous year, indicating a substantial increase in financial pressure[12] Research and Development - The company is advancing its product pipeline, including the REC603 HPV vaccine, with plans to submit a BLA application in 2026 following interim analysis[3] - Research and development costs increased to RMB 299,582,000 for the six months ended June 30, 2025, compared to RMB 205,222,000 in 2024, reflecting a growth of 45.8%[27] - The company is focused on developing innovative vaccines, with a pipeline that includes over 10 candidates, including the strategic products REC610 and REC603, both in Phase III clinical trials[40] - The company has established a comprehensive vaccine innovation engine, which includes advanced platforms for adjuvant and protein engineering, enabling the development of innovative vaccines[41] - The company has developed advanced technology platforms for adjuvant development, protein engineering, and immunological evaluation, facilitating the discovery of subunit vaccines[70] Clinical Trials and Product Development - REC603, the core product, is currently in the critical phase of the Phase III clinical trial in China, with a total sample size of 16,050 participants[48] - The new adjuvant recombinant quadrivalent HPV vaccine (REC604a) has received clinical trial approval from the National Medical Products Administration[46] - The recombinant zoster vaccine (REC610) has also received clinical trial approval and is set to initiate Phase III trials in October 2024[46] - The bivalent recombinant respiratory syncytial virus vaccine (REC625) is expected to complete preclinical research by 2025[46] - The company plans to submit the Biologics License Application (BLA) for REC603 by 2026, following the completion of the Phase III trial and interim analysis[49] Financial Strategy and Capital Management - The company has received approval from the China Securities Regulatory Commission to issue shares to Yangtze River Pharmaceutical Group for a total consideration of RMB 800,000,000, expected to be completed by September 30, 2025[17] - The company has secured unused credit facilities totaling RMB 130,000,000, available until June 30, 2026, to support its operational needs[17] - The company plans to issue up to 143,112,702 domestic shares at a subscription price of RMB 5.59 per share to enhance its business development and financial structure[115] - Approximately RMB 800 million is expected to be raised from the share issuance, with about 70% allocated to the shingles vaccine project and 30% for working capital[116][118] - The company aims to maintain sufficient cash and cash equivalents to meet its working capital needs and mitigate cash flow volatility[113] Market Position and Future Outlook - The company operates primarily in the vaccine research and development sector within mainland China, with no significant revenue from other regions reported[14] - The company is focusing on expanding its vaccine portfolio to address various viral infections, including HPV and respiratory viruses, to meet market demand[46] - The company reported a significant increase in revenue, with a year-over-year growth of 25% in Q2 2023[136] - The company projects a revenue guidance of $500 million for Q3 2023, reflecting a 20% growth from Q2 2023[136] - Future outlook remains positive, with anticipated growth driven by new product launches and market expansion strategies[136]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 PERFECTECH INTERNATIONAL HOLDINGS LIMITED （於百慕達註冊成立之有限公司） 威發國際集團有限公司* （股份編號：00765） 截至二零二五年六月三十日止六個月之中期業績公告 中期業績 威發國際集團有限公司（「本公司」）董事（「董事」，各自稱為「董事」）會（「董事會」）欣然宣 佈本公司及其附屬公司（「本集團」）於截至二零二五年六月三十日止六個月之未經審核簡 明綜合業績，以及二零二四年同期之比較數字。 簡明綜合損益及其他全面收益表 截至二零二五年六月三十日止六個月 | | | （未經審核） | | | --- | --- | --- | --- | | | | 截至六月三十日止六個月 | | | | | 二零二五年 | 二零二四年 | | | 附註 | 港幣千元 | 港幣千元 | | 收益 | 3及4 | 61,958 | 68,611 | | 銷售成本 | | (4 ...

[Summary](index=1&type=section&id=Summary) The Group reported positive financial results, demonstrating strong revenue, profitability, and a robust balance sheet with no interest-bearing debt | Metric | Six Months Ended June 30, 2025 (RMB million) | | :--- | :--- | | Total Revenue | 1,039.4 | | Gross Profit | 223.6 | | Net Profit | 28.6 | | Net Profit Attributable to Company Shareholders | 23.9 | | Asset-Liability Ratio | 21.6% (down 2.7 percentage points from December 31, 2024) | | Interest-Bearing Debt | None | [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) Service revenue increased, but profit for the period declined due to higher expected credit losses and lower associate performance | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Service Revenue | 1,039,446 | 974,488 | 6.7% | | Service Costs | (815,821) | (754,141) | 8.2% | | Gross Profit | 223,625 | 220,347 | 1.5% | | Impairment losses under expected credit loss model | (65,793) | (33,214) | 98.1% | | Share of results of associates | (1,623) | 105 | - | | Share of results of joint ventures | (979) | (31,599) | -96.9% | | Profit before tax | 44,280 | 46,417 | -4.6% | | Income tax expense | (15,702) | (13,314) | 17.9% | | Profit for the period | 28,578 | 33,103 | -13.7% | | Profit for the period attributable to owners of the Company | 23,892 | 24,380 | -2.0% | | Basic earnings per share (RMB cents) | 1.42 | 1.63 | -12.9% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets slightly decreased, but net current assets increased, with significantly reduced current liabilities and an improved current ratio, maintaining a robust capital structure | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 1,549,871 | 1,554,413 | -0.3% | | Current Assets | 4,254,996 | 4,362,381 | -2.5% | | Current Liabilities | 1,238,019 | 1,415,259 | -12.5% | | Net Current Assets | 3,016,977 | 2,947,122 | 2.4% | | Net Assets | 4,552,448 | 4,481,311 | 1.6% | | Total Equity | 4,552,448 | 4,481,311 | 1.6% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, principal accounting policies, revenue and segment information, taxation, dividends, earnings per share, and the composition and changes in major receivables and payables, providing supplementary information for understanding the financial statements - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules[10](index=10&type=chunk) - The application of amendments to Hong Kong Financial Reporting Standards had no material impact on the Group's financial position or performance[12](index=12&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[22](index=22&type=chunk) [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and the disclosure requirements of the Listing Rules - Financial statements adhere to Hong Kong Accounting Standard 34 and Listing Rules[10](index=10&type=chunk) [2. Principal Accounting Policies](index=6&type=section&id=2.%20Principal%20Accounting%20Policies) The financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value, with no material impact from new HKFRS amendments applied this period - Financial statements are primarily prepared on a historical cost basis, with some financial instruments measured at fair value[11](index=11&type=chunk) - The first-time application of amendments to Hong Kong Financial Reporting Standards had no material impact on financial position, performance, or disclosures for the current and prior periods[12](index=12&type=chunk) [3. Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from property management services (lump sum and commission-based) and value-added services (online promotion, sales and leasing assistance, engineering services, and others), with property management services accounting for the vast majority of total revenue | Revenue Type | Period Ended June 30, 2025 (RMB thousand) | Period Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Property Management Services** | | | | Lump Sum Basis | 985,018 | 910,208 | | Commission Basis | 9,022 | 19,634 | | **Value-Added Services** | | | | Online Promotion Services | 4,047 | 8,429 | | Sales and Leasing Assistance | 20,395 | 24,647 | | Engineering Services | 1,947 | 3,713 | | Other Value-Added Services | 19,017 | 7,857 | | **Total** | 1,039,446 | 974,488 | [4. Segment Information](index=9&type=section&id=4.%20Segment%20Information) The Group primarily provides property management and related services in China, with management reviewing the business as a single operating segment, and no single customer accounted for 10% or more of the Group's revenue in the current or prior periods, with most revenue and non-current assets located in China - The Group primarily provides property management and related services in China, with management reviewing the business as a single operating segment[15](index=15&type=chunk) - No single customer accounted for 10% or more of the Group's revenue[16](index=16&type=chunk) - As of June 30, 2025 and 2024, the Group's principal operating entities are located in China, and the majority of revenue and non-current assets are derived from China[17](index=17&type=chunk)[18](index=18&type=chunk) [5. Income Tax Expense](index=9&type=section&id=5.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense was RMB 15.7 million, an increase from RMB 13.3 million in the prior year period | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax (PRC Enterprise Income Tax) | (19,946) | (14,372) | | Deferred Tax (credited to profit or loss) | 4,244 | 1,058 | | **Total Income Tax Expense** | (15,702) | (13,314) | [6. Profit for the Period](index=10&type=section&id=6.%20Profit%20for%20the%20Period) Profit for the period was influenced by factors such as staff costs, government grants, VAT exemptions, exchange gains/losses, and depreciation, with staff costs slightly increasing year-on-year and government grants and VAT exemptions decreasing | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Staff Costs | 318,091 | 314,889 | | Government Grants | (1,662) | (2,560) | | Partial Exemption from PRC VAT | (853) | (1,243) | | Net Exchange Losses / (Gains) | 845 | (85) | | Depreciation of Property, Plant and Equipment | 13,930 | 11,342 | | Depreciation of Right-of-Use Assets | 10,608 | 9,980 | [7. Dividends](index=10&type=section&id=7.%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the first half of 2025[22](index=22&type=chunk) [8. Earnings Per Share](index=11&type=section&id=8.%20Earnings%20Per%20Share) As of June 30, 2025, basic and diluted earnings per share were RMB 1.42 cents, lower than RMB 1.63 cents in the prior year period, with 371,881,438 new shares issued through a rights issue during the period, raising approximately RMB 55.8 million | Metric | Six Months Ended June 30, 2025 (RMB cents) | Six Months Ended June 30, 2024 (RMB cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 1.42 | 1.63 | | Diluted Earnings Per Share | 1.42 | 1.63 | - During the period ended June 30, 2025, 371,881,438 new shares were issued through a rights issue, raising approximately **RMB 55.8 million** (net of issue costs)[26](index=26&type=chunk) [9. Trade Receivables](index=12&type=section&id=9.%20Trade%20Receivables) As of June 30, 2025, net trade receivables increased by 23.3% to RMB 923.0 million compared to December 31, 2024, primarily due to an increase in lump-sum managed communities and seasonal industry effects | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables (net of credit loss allowance) | 922,973 | 748,522 | 23.3% | - The increase in trade receivables is mainly due to an increase in communities managed under the lump-sum basis and seasonal effects in the property management industry, leading to higher outstanding property management fees[74](index=74&type=chunk) [10. Trade Payables](index=13&type=section&id=10.%20Trade%20Payables) As of June 30, 2025, trade payables decreased by 22.0% to RMB 390.2 million compared to December 31, 2024, primarily due to a shortened payment cycle to suppliers | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 390,166 | 500,012 | -22.0% | - The decrease in trade payables is primarily due to the Group shortening its payment cycle to suppliers[76](index=76&type=chunk) [11. Comparative Figures](index=13&type=section&id=11.%20Comparative%20Figures) Certain comparative figures have been reclassified to align with the current period's presentation - Certain comparative figures have been reclassified to conform to the current period's presentation[29](index=29&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth discussion of the Group's business model, development strategy, operational review, and financial position, highlighting its focus on smart community development, value-added services expansion through organic growth, and continuous cost optimization, alongside a robust capital structure with no interest-bearing debt [Business Model](index=14&type=section&id=Business%20Model) Colour Life Services Group, a leading property management and community service operator in China, leverages core property management services with internet, IoT, big data, and AI technologies to build smart community platforms, deliver efficient and high-quality services, foster vibrant community culture, and expand community consumption scenarios - The Group bases its operations on property management services, utilizing internet technology to build online and offline service platforms, efficiently connecting community residents with various goods and service providers[30](index=30&type=chunk) - The Group actively promotes smart community construction, embracing emerging technologies like IoT, big data, and AI, introducing smart device applications to enhance service quality and efficiency[31](index=31&type=chunk) - An automated, centralized, and standardized management system ensures excellent cost control while maintaining customer satisfaction, with a commitment to fostering a vibrant community atmosphere[32](index=32&type=chunk) - The Group actively develops "Cai Zhi Yun" (彩之云), an online community service platform, which, combined with offline customer manager services, integrates online and offline businesses to further expand its competitive advantage[33](index=33&type=chunk) [Business Development](index=16&type=section&id=Business%20Development) The Group expands through organic new appointments driven by reputation and brand, managing a total contracted GFA of 281.15 million square meters across 1,651 communities as of June 30, 2025, while actively exploring value-added community services like car insurance sales and the "Cai You Xuan" online shopping platform to enhance owner engagement - The Group focuses on organic new appointment expansion through reputation and brand, with total contracted GFA reaching **281.15 million square meters** and **1,651 communities** as of June 30, 2025[35](index=35&type=chunk)[41](index=41&type=chunk) - The Group continuously explores value-added service types in community scenarios, such as car insurance product sales and the "Cai You Xuan" online shopping platform, to increase interaction frequency and engagement between property management and owners[37](index=37&type=chunk) [Contracted Gross Floor Area and Number of Communities](index=19&type=section&id=Contracted%20Gross%20Floor%20Area%20and%20Number%20of%20Communities) As of June 30, 2025, the Group's total contracted GFA was 281.15 million square meters and the number of communities was 1,651, a decrease from December 31, 2024, primarily due to contract terminations | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Contracted Gross Floor Area (thousand square meters) | 281,147 | 306,817 | -25,670 | | Number of Communities | 1,651 | 1,759 | -108 | | Reason for Change | Contracted Gross Floor Area (thousand square meters) | Number of Communities | | :--- | :--- | :--- | | Beginning of Year | 306,817 | 1,759 | | New Appointments | 2,301 | 27 | | Acquisitions | – | – | | Terminations | (27,971) | (135) | | End of Period | 281,147 | 1,651 | - The decrease in contracted GFA and number of communities is primarily due to the Group not renewing certain property management contracts based on commercial considerations[43](index=43&type=chunk) [Business Overview](index=20&type=section&id=Business%20Overview) The Group's main businesses include property management services (lump sum and commission-based) and value-added services (online promotion, sales and leasing assistance, engineering services, and others), with property management services provided by over 24,789 on-site personnel, and value-added services delivered through online platforms, customer managers, and third-party collaborations - The Group has two main businesses: property management services (provided on a lump-sum and commission basis) and value-added services (online promotion, sales and leasing assistance, engineering services, and other value-added services)[44](index=44&type=chunk) - As of June 30, 2025, the Group employed over **24,789 on-site personnel** to provide property management services[45](index=45&type=chunk) - Value-added services are provided through the "Cai Zhi Yun" online platform, customer managers, and collaborations with third parties, offering diversified services including car park sales, community advertising space rental, engineering services (through subsidiaries Shenzhen Kaiyuan Tongji and Shenzhen Ancaihua), and other value-added services (shopping assistance, energy management, charging piles, direct drinking water, insurance brokerage, etc.)[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) [Scope of Property Management Services](index=21&type=section&id=Scope%20of%20Property%20Management%20Services) Property management services are categorized into lump-sum and commission-based arrangements, where under the lump-sum basis, the Group collects all property management fees and bears related expenses, while under the commission basis, the Group acts as an agent for owners, retaining an agreed percentage of fees for its services - Under the lump-sum basis, the Group is entitled to recognize all property management fees collected from owners as revenue and pays property management-related expenses from these fees[47](index=47&type=chunk) - Under the commission basis, the Group essentially acts as an agent for owners, entitled to retain an agreed percentage (generally **10%**) of the property management fees payable by owners as its revenue[48](index=48&type=chunk) [Scope of Value-Added Services](index=22&type=section&id=Scope%20of%20Value-Added%20Services) Value-added services include online promotion, sales and leasing assistance, engineering services, and other services, with online promotion via the "Cai Zhi Yun" platform, sales and leasing assistance covering property referrals and space rentals, engineering services provided by subsidiaries and driving smart community upgrades, and other services encompassing shopping assistance, energy management, charging piles, direct drinking water, and insurance brokerage - Online promotion services promote products or services to owners through the Group's "Cai Zhi Yun" online platform, earning commissions or information system software usage fees[51](index=51&type=chunk) - Sales and leasing assistance includes referring cases to third-party property agents, selling car parking spaces on behalf of owners, and assisting in renting out physical advertising spaces and additional storage spaces in communities[52](index=52&type=chunk) - Engineering services are provided by subsidiaries Shenzhen Kaiyuan Tongji and Shenzhen Ancaihua, continuously driving smart community upgrades based on internet technology, including hardware renovation, cloud system connectivity, and AI large model applications[53](index=53&type=chunk)[54](index=54&type=chunk) - Other value-added services include shopping assistance, energy management services, charging pile business, community direct drinking water business, insurance brokerage, and others[55](index=55&type=chunk) [Review and Analysis](index=24&type=section&id=Review%20and%20Analysis) This section reviews the Group's financial performance during the reporting period, noting a 6.7% year-on-year increase in total revenue driven by lump-sum property management services, a slight decrease in overall gross profit margin, and profit for the period affected by increased impairment losses and reduced commission-based business, while maintaining a healthy cash position, no interest-bearing debt, and an improved current ratio [Revenue](index=24&type=section&id=Revenue) The Group's total revenue increased by 6.7% year-on-year to RMB 1,039.4 million, primarily contributed by property management services, which accounted for 95.6% of total revenue | Revenue Type | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 994,040 | 95.6% | 929,842 | 95.4% | 64,198 | 6.9% | | Value-Added Services | 45,406 | 4.4% | 44,646 | 4.6% | 760 | 1.7% | | **Total Revenue** | 1,039,446 | 100% | 974,488 | 100.0% | 64,958 | 6.7% | [Property Management Services](index=25&type=section&id=Property%20Management%20Services) Property management service revenue increased by 6.9% year-on-year to RMB 994.0 million, with lump-sum services revenue growing by 8.2% due to increased managed communities and business expansion, while commission-based services revenue decreased by 54.0% mainly due to contract terminations | Revenue Type | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property management service fees on a lump-sum basis | 985,018 | 94.8% | 910,208 | 93.4% | 74,810 | 8.2% | | Property management service fees on a commission basis | 9,022 | 0.8% | 19,634 | 2.0% | (10,612) | (54.0%) | | **Total Property Management Service Fees** | 994,040 | 95.6% | 929,842 | 95.4% | 64,198 | 6.9% | - The increase in lump-sum property management service revenue is primarily due to an increase in communities managed under the lump-sum basis and business expansion through new appointments during the period[58](index=58&type=chunk) - The decrease in commission-based property management service revenue is mainly due to the termination of certain commission-based service contracts during the period[58](index=58&type=chunk) [Value-Added Services](index=26&type=section&id=Value-Added%20Services) Value-added service revenue increased by 1.7% year-on-year to RMB 45.4 million, with online promotion, sales and leasing assistance, and engineering services revenue all decreasing, while other value-added services revenue significantly grew by 142.0%, primarily driven by increased income from insurance brokerage, water dispensers, and charging pile businesses | Revenue Type | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Online Promotion Services | 4,047 | 0.4% | 8,429 | 0.9% | (4,382) | (52.0%) | | Sales and Leasing Assistance | 20,395 | 2.0% | 24,647 | 2.5% | (4,252) | (17.3%) | | Engineering Services | 1,947 | 0.2% | 3,713 | 0.4% | (1,766) | (47.6%) | | Other Value-Added Services | 19,017 | 1.8% | 7,857 | 0.8% | 11,160 | 142.0% | | **Total Value-Added Service Fees** | 45,406 | 4.4% | 44,646 | 4.6% | 760 | 1.7% | - The significant increase in other value-added services revenue is primarily due to an increase of **RMB 5.0 million** in insurance brokerage income, **RMB 1.7 million** in new water dispenser income, and **RMB 1.5 million** in charging pile business income[63](index=63&type=chunk) [Cost of Services](index=27&type=section&id=Cost%20of%20Services) Cost of services increased by 8.2% year-on-year to RMB 815.8 million, primarily due to an increase in communities managed under the lump-sum basis and business expansion through new appointments | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Services | 815.8 | 754.1 | 8.2% | - The increase in cost of services is primarily due to an increase in communities managed under the lump-sum basis and business expansion through new appointments during the period[60](index=60&type=chunk) [Gross Profit and Gross Profit Margin](index=27&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Overall gross profit increased by 1.5% year-on-year to RMB 223.6 million, but the overall gross profit margin decreased by 1.1 percentage points to 21.5%, with both property management services and value-added services experiencing slight declines in gross profit margin | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Overall Gross Profit | 223.6 | 220.3 | 1.5% | | Overall Gross Profit Margin | 21.5% | 22.6% | -1.1 percentage points | - The gross profit margin for property management services decreased from **19.8%** in the prior year period to **18.9%** in the current period, mainly due to an increased proportion of revenue from lump-sum property management services, which have lower gross profit margins, and a decreased proportion of revenue from commission-based property management services, which have higher gross profit margins[64](index=64&type=chunk) - The gross profit margin for value-added services decreased from **81.5%** in the prior year period to **78.3%** in the current period[65](index=65&type=chunk) [Other Gains and Losses](index=28&type=section&id=Other%20Gains%20and%20Losses) Other losses of approximately RMB 5.0 million were recorded in the current period, an increase of approximately RMB 2.5 million compared to other losses of approximately RMB 2.5 million in the prior year period | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Other Losses | 5.0 | 2.5 | 2.5 (increase in loss) | [Other Income](index=28&type=section&id=Other%20Income) Other income for the current period was approximately RMB 9.8 million, a decrease of approximately RMB 1.2 million compared to approximately RMB 11.0 million in the prior year period | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Other Income | 9.8 | 11.0 | -1.2 | [Selling and Distribution Expenses](index=29&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses were approximately RMB 2.2 million, an increase of approximately RMB 0.2 million compared to approximately RMB 2.0 million in the prior year period | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 2.2 | 2.0 | 0.2 | [Administrative Expenses](index=29&type=section&id=Administrative%20Expenses) Administrative expenses were approximately RMB 111.8 million, a decrease of approximately RMB 1.3 million or 1.1% compared to approximately RMB 113.1 million in the prior year period | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 111.8 | 113.1 | -1.3 | [Finance Costs](index=29&type=section&id=Finance%20Costs) Finance costs were approximately RMB 1.1 million, a decrease of approximately RMB 0.1 million compared to approximately RMB 1.2 million in the prior year period, primarily from lease liabilities | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Finance Costs | 1.1 | 1.2 | -0.1 | - Finance costs for the period arose from lease liabilities[70](index=70&type=chunk) [Income Tax Expense](index=29&type=section&id=Income%20Tax%20Expense) Income tax expense was approximately RMB 15.7 million, an increase of approximately RMB 2.4 million compared to approximately RMB 13.3 million in the prior year period | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 15.7 | 13.3 | 2.4 | [Goodwill](index=29&type=section&id=Goodwill) As of June 30, 2025, the carrying amount of goodwill was approximately RMB 880.3 million, consistent with December 31, 2024 | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Goodwill | 880.3 | 880.3 | [Bank Balances and Cash](index=30&type=section&id=Bank%20Balances%20and%20Cash) As of June 30, 2025, the Group's total cash balance was approximately RMB 778.5 million, a decrease of approximately 21.7% from approximately RMB 994.1 million as of December 31, 2024 | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Bank Balances and Cash | 778.5 | 994.1 | -21.7% | [Trade and Other Receivables and Prepayments](index=30&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments) Net trade receivables increased by 23.3% to RMB 923.0 million, primarily due to an increase in lump-sum managed communities and seasonal effects, while other receivables and prepayments increased by 5.8% to RMB 1,624.2 million | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables (net of credit loss allowance) | 923.0 | 748.5 | 23.3% | | Other Receivables and Prepayments | 1,624.2 | 1,535.8 | 5.8% | - The increase in trade receivables is primarily due to an increase in communities managed under the lump-sum basis during the period, and the seasonal nature of the property management industry, where collections in the second half of the year are generally better than the first half[74](index=74&type=chunk) [Payments/Receipts on Behalf of Residents](index=31&type=section&id=Payments%2FReceipts%20on%20Behalf%20of%20Residents) Payments/receipts on behalf of residents refer to the current accounts of property management offices in residential communities managed by the Group on a commission basis, reflecting whether expenses paid by the Group exceed property management fees collected from residents, or vice versa - Payments/receipts on behalf of residents refer to the current accounts of property management offices in residential communities managed by the Group on a commission basis, reflecting whether expenses paid by the Group exceed property management fees collected from residents, or vice versa[75](index=75&type=chunk) [Trade and Other Payables and Accruals](index=31&type=section&id=Trade%20and%20Other%20Payables%20and%20Accruals) Trade payables decreased by 22.0% to RMB 390.2 million, mainly due to a shortened payment cycle, while other payables and accruals decreased to RMB 164.2 million, primarily due to reduced staff costs payable and amounts due to third parties | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 390.2 | 500.0 | -22.0% | | Other Payables and Accruals | 164.2 | 217.2 | -24.4% | - The decrease in trade payables is primarily due to the Group shortening its payment cycle to suppliers[76](index=76&type=chunk) - The decrease in other payables and accruals is mainly due to a reduction in staff costs payable and amounts due to third parties[76](index=76&type=chunk) [Share Capital](index=32&type=section&id=Share%20Capital) As of June 30, 2025, the total number of issued shares increased to 1,859,407,192 shares, and share capital increased to RMB 155.1 million, primarily due to the rights issue of 371,881,438 new shares, raising net proceeds of approximately HK$60.36 million for general working capital, AI technology application, and value-added services development | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Number of Issued Shares | 1,859,407,192 shares | 1,487,525,754 shares | 371,881,438 shares | | Share Capital (RMB million) | 155.1 | 120.8 | 34.3 | - The Company issued a total of **371,881,438 rights shares** with a total par value of **HK$37,188,143.8**, raising net proceeds of approximately **HK$60.36 million**[78](index=78&type=chunk) | Use of Net Proceeds from Rights Issue | Proportion | Net Proceeds (HK$ million) | Utilized During Period (HK$ million) | Unutilized (HK$ million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | General working capital | 40% | 24.144 | 24.144 | – | N/A | | Application of AI technology in the Group's community operations and big data construction to improve service efficiency | 20% | 12.072 | 9.779 | 2.293 | End of 2025 | | Development of the Group's community value-added services | 20% | 12.072 | 4.775 | 7.297 | End of 2025 | | Working capital reserve | 20% | 12.072 | 12.072 | – | N/A | | **Total** | 100.0% | 60.36 | 50.77 | 9.59 | | [Cash Position](index=33&type=section&id=Cash%20Position) As of June 30, 2025, the Group's total cash (including pledged bank deposits) was RMB 842.4 million, a decrease of approximately 19.7% from December 31, 2024, with the current ratio improving to 3.4 times | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Cash (including pledged bank deposits) | 842.4 | 1,049.2 | -19.7% | | Current Ratio | 3.4 times | 3.1 times | 0.3 times | [Net Debt to Equity Ratio](index=33&type=section&id=Net%20Debt%20to%20Equity%20Ratio) As of June 30, 2025, the Group had repaid all interest-bearing debt, thus no net debt to equity ratio is presented - As of June 30, 2025, total bank balances and cash, and pledged/restricted bank deposits amounted to **RMB 842.4 million**, with all interest-bearing debt repaid, hence no net debt to equity ratio is presented as of June 30, 2025[81](index=81&type=chunk) [Exchange Rate Risk](index=34&type=section&id=Exchange%20Rate%20Risk) The Group primarily operates in China and does not have any other significant direct foreign exchange fluctuation risks - The Group primarily operates in China and does not have any other significant direct foreign exchange fluctuation risks[82](index=82&type=chunk) [Employees and Remuneration Policy](index=34&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had approximately 9,463 employees, a decrease from December 31, 2024, with remuneration determined based on employee performance, skills, qualifications, experience, and industry practice, offering MPF/pension schemes and discretionary bonuses | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 9,463 employees | 10,191 employees | -728 employees | - Remuneration is determined with reference to employee performance, skills, qualifications, experience, and prevailing industry practices; other employee benefits include contributions to Mandatory Provident Fund (for Hong Kong employees) and state-managed retirement schemes (for PRC employees), as well as discretionary bonus schemes[83](index=83&type=chunk) [Material Investments](index=34&type=section&id=Material%20Investments) As of June 30, 2025, the Group had no material investments - As of June 30, 2025, the Group had no material investments[84](index=84&type=chunk) [Pledge of the Group's Assets](index=34&type=section&id=Pledge%20of%20the%20Group's%20Assets) As of June 30, 2025, the Group had no material pledge of assets - As of June 30, 2025, the Group had no material pledge of assets[85](index=85&type=chunk) [Contingent Liabilities](index=34&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[86](index=86&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=34&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[87](index=87&type=chunk) [Future Plans for Material Investments or Capital Assets and Expected Sources of Funding](index=35&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets%20and%20Expected%20Sources%20of%20Funding) As of June 30, 2025, the Group had no material investment or capital asset plans - As of June 30, 2025, the Group had no material investment or capital asset plans[88](index=88&type=chunk) [Dividends](index=35&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[89](index=89&type=chunk) [Corporate Governance Code](index=35&type=section&id=Corporate%20Governance%20Code) The Company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules; during the reporting period, the Company briefly failed to comply with several Listing Rules requirements due to the resignation of an independent non-executive director but regained compliance upon the appointment of a new director on August 15, 2025 - The Company has adopted all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[90](index=90&type=chunk) - From June 4, 2025, due to the resignation of Mr. Zhang Yue as an independent non-executive director, the Company failed to comply with several Listing Rules requirements, including the number of independent non-executive directors, the composition of the audit committee, the chairman of the remuneration committee, and the composition of the nomination committee[90](index=90&type=chunk) - The Company regained compliance with the above requirements upon the appointment of Mr. Li Xinhu as an independent non-executive director on August 15, 2025[90](index=90&type=chunk) [Standard Code for Securities Transactions by Directors](index=36&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with this code during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its own code of conduct regarding directors' securities transactions[92](index=92&type=chunk) - The Company has made specific enquiries to all directors, and all directors have confirmed their compliance with the Standard Code for the six months ended June 30, 2025[92](index=92&type=chunk) [Review of Interim Results](index=36&type=section&id=Review%20of%20Interim%20Results) The interim results for the six months ended June 30, 2025, have been reviewed by the Audit Committee, comprising three independent non-executive directors - The Company's interim results for the six months ended June 30, 2025, have been reviewed by the Audit Committee, which comprises three independent non-executive directors[93](index=93&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=36&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the HKEXnews website and the Company's website, and the 2025 interim report will be published on these websites and dispatched to the Company's shareholders in due course - This announcement is published on the HKEXnews website (www.hkexnews.hk) and the Company's website (www.colourlife.hk)[94](index=94&type=chunk) - The Company's 2025 interim report will be published on the aforementioned websites and dispatched to the Company's shareholders in due course[94](index=94&type=chunk)

浙江升華蘭德科技股份有限公司 SHENGHUA LANDE SCITECH LIMITED* （在中華人民共和國註冊成立的股份有限公司） （股份代號：8106） 中期業績公告 截至二零二五年六月三十日止六個月 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有 較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方 作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證券承受較 大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本公告之內容概不負責，對其準確性或完整性亦不發表任何 聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失 承擔任何責任。 本公告的資料乃遵照GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關浙江升華蘭德科 技股份有限公司（「本公司」）的資料。本公司董事（「董事」）願就本公告所載資料共同及個別承擔全部 責任。董事在 ...

[Company Profile](index=4&type=section&id=Company%20Profile) [Corporate Vision and Core Competencies](index=4&type=section&id=Corporate%20Vision%20and%20Core%20Competencies) The company aims to be a global leader in motion control technology, accelerating safe, green, and exciting mobility - The company's vision is to become a global leader in motion control technology, accelerating safe, green, and exciting mobility[8](index=8&type=chunk) - The core product portfolio includes Electric and Hydraulic Power Steering systems, Steer-by-Wire, Rear-Wheel Steering, steering columns, intermediate shafts, driveline systems, software solutions, and Brake-to-Steer, supporting chassis-by-wire control[9](index=9&type=chunk) - The company's competitive advantage lies in its in-house development and system integration capabilities across hardware, software, and electronic components[9](index=9&type=chunk) - The company addresses motion control challenges driven by megatrends such as electrification, software/connectivity, ADAS/AD, and shared mobility[9](index=9&type=chunk) [Global Presence, Products, and Customers](index=5&type=section&id=Global%20Presence%2C%20Products%2C%20and%20Customers) Nexteer operates globally with extensive facilities and serves a diverse customer base of major global and domestic OEMs - The global headquarters is located in Auburn Hills, Michigan, USA[14](index=14&type=chunk) - The company operates **26 manufacturing plants** (including one non-consolidated joint venture), **5 technical centers**, and **13 customer service centers**[14](index=14&type=chunk) - Key products include Electric Power Steering (EPS), Steer-by-Wire (SbW), Rear-Wheel Steering (RWS), Brake-by-Wire (BbW), Column and Intermediate Shafts (CIS), Driveline (DL), Hydraulic Power Steering (HPS), and Software Solutions (SW)[14](index=14&type=chunk) - Customers include global and domestic OEMs such as BMW, BYD, Changan, Chery, Ford, GAC, General Motors, Geely, Great Wall Motor, Li Auto, Maruti Suzuki, Renault-Nissan-Mitsubishi Alliance, SAIC, SGMW, Stellantis, Volkswagen, and XPeng Motors[14](index=14&type=chunk) [Corporate Information](index=6&type=section&id=Corporate%20Information) [Board of Directors and Corporate Structure](index=6&type=section&id=Board%20of%20Directors%20and%20Corporate%20Structure) The company's board comprises executive, non-executive, and independent non-executive directors, with upcoming leadership changes in 2025 - Mr DING Fengtao will be re-designated from a Non-executive Director to an Executive Director and appointed as Chairman and CEO, effective August 13, 2025[15](index=15&type=chunk) - Mr LEI Zili will be re-designated from an Executive Director to a Non-executive Director and will resign as Chairman and CEO, effective August 13, 2025[15](index=15&type=chunk) - The Audit and Compliance Committee is chaired by Mr WANG Bin, and the Remuneration and Nomination Committee is chaired by Mr LAU Kin Kwan[15](index=15&type=chunk) [Registration and Listing Information](index=6&type=section&id=Registration%20and%20Listing%20Information) The company is registered in the Cayman Islands, headquartered in the US, and its shares are listed on the Hong Kong Stock Exchange - Headquarters: Auburn Hills, Michigan, USA[15](index=15&type=chunk) - Registered Office: Cayman Islands[15](index=15&type=chunk) - Principal Place of Business in Hong Kong: 31/F, Tower Two, Times Square, Causeway Bay, Hong Kong[16](index=16&type=chunk) - Shares are listed on The Stock Exchange of Hong Kong Limited with stock code **1316**[16](index=16&type=chunk) [Business Overview](index=7&type=section&id=Business%20Overview) [Profitable Growth Strategy](index=7&type=section&id=Profitable%20Growth%20Strategy) Nexteer adheres to a six-point profitable growth strategy to enhance shareholder value and achieve its corporate vision - The company is committed to a six-point profitable growth strategy to drive shareholder value and realize its vision[17](index=17&type=chunk) - The strategy includes expanding and diversifying the revenue base, strengthening technology leadership, capitalizing on megatrends, optimizing the cost structure, selectively pursuing acquisitions and alliances, and focusing on China and emerging markets[19](index=19&type=chunk) [H1 2025 Business Highlights](index=8&type=section&id=H1%202025%20Business%20Highlights) In H1 2025, Nexteer achieved $2.2 billion in revenue, a 7% year-over-year increase, and secured $1.5 billion in customer project bookings H1 2025 Business Highlights | Metric | Amount/Description | Change | | :--- | :--- | :--- | | Half-year Revenue | $2.2 billion | 7% increase vs H1 2024 | | Customer Project Bookings | $1.5 billion | - | | New/Conquest Business Share | 74% | - | | Bookings from Chinese Domestic OEMs | Approx $600 million (39%) | - | | New Customer Program Launches | 31 | - | | Battery Electric Vehicle (BEV) Programs | 21 | - | - The company continues to be the steering systems market leader among Chinese domestic OEMs in China[21](index=21&type=chunk) - The first DPEPS project in China and the first modular Column-Assist EPS project in Europe were successfully launched[21](index=21&type=chunk) [Value Growth in a Dynamic Market](index=9&type=section&id=Value%20Growth%20in%20a%20Dynamic%20Market) Nexteer navigates the complex global automotive industry by enhancing resilience and competitiveness through strategic supply chain and production adjustments - Global vehicle production rose by **3.1% in H1 2025** but is expected to decline in the second half, with a full-year increase of only 0.4%[22](index=22&type=chunk) - The company made significant progress in customer negotiations for cost recovery by adjusting its supply chain to comply with the USMCA, strengthening US-China tariff planning, and implementing dual-sourcing strategies[23](index=23&type=chunk) - Cost optimization initiatives are actively being identified and implemented across global operations, including adjusting fixed cost structures and leveraging technical centers in Mexico and the Asia Pacific region for talent rotation[23](index=23&type=chunk) [Supply Chain and Cost Optimization](index=9&type=section&id=Supply%20Chain%20and%20Cost%20Optimization) Nexteer proactively manages supply chain challenges and enhances profitability through tariff planning, dual sourcing, and digital supply chain management - A dual-sourcing strategy is implemented to mitigate risks and ensure the continuity of critical component supply[26](index=26&type=chunk) - The company collaborates with suppliers to achieve target costs and incorporates annual price reductions into contractual agreements[26](index=26&type=chunk) - Digitalization enhances the efficiency, transparency, and responsiveness of global supply chain management[26](index=26&type=chunk) [Manufacturing Footprint Expansion and Transformation](index=9&type=section&id=Manufacturing%20Footprint%20Expansion%20and%20Transformation) The company expands its Asia Pacific capacity with new facilities in China and transforms its US Saginaw site to optimize operations - A new plant in Changshu, opened in January 2025, enhances capacity to meet Chinese domestic OEM demand with a focus on high-end, intelligent, and sustainable manufacturing[27](index=27&type=chunk) - Ground was broken for a new smart manufacturing plant in Liuzhou, which will replace existing operations, increase capacity, and solidify market leadership in the Asia Pacific steering systems market[27](index=27&type=chunk) - The US Saginaw site completed DL business consolidation, listed a vacant plant for sale, and transferred column business to Mexico to optimize facility space and reduce costs[27](index=27&type=chunk) [2025 Global Supplier Conference](index=11&type=section&id=2025%20Global%20Supplier%20Conference) Nexteer hosted its Global Supplier Conference in April 2025 to enhance supply chain agility, resilience, and sustainability - The Global Supplier Conference was held in Changshu, China, in April 2025, gathering around 200 suppliers and government representatives[28](index=28&type=chunk) - The conference focused on enhancing supply chain agility, resilience, and sustainability, emphasizing accelerated innovation-to-market, collaborative cost and time efficiency, and a continued focus on safety-critical quality[28](index=28&type=chunk)[30](index=30&type=chunk) [H1 2025 Order Bookings](index=11&type=section&id=H1%202025%20Order%20Bookings) Nexteer secured $1.5 billion in customer project bookings in H1 2025, driven by strong demand for its EPS and RWS technologies H1 2025 Order Bookings Distribution | Metric | Amount/Percentage | | :--- | :--- | | Total Bookings | $1.5 billion | | EPS Product Line Share | 69% | | CIS Product Line Share | 23% | | Driveline Product Line Share | 8% | | EV or EV/ICE Shared Platform Share | 39% | | ICE Platform Share | 61% | | New/Conquest Business Share | 74% | - The company secured significant orders for Chinese NEV platforms and its first Rear-Wheel Steering (RWS) orders in China and EMEASA[29](index=29&type=chunk) - Bookings from Chinese domestic OEMs amounted to **$600 million**, supporting their globalization strategies, with their total production in H1 2025 increasing by **21.7%** compared to H1 2024[31](index=31&type=chunk) [Shanghai Auto Show Showcase and Chinese Domestic OEM Expansion](index=12&type=section&id=Shanghai%20Auto%20Show%20Showcase%20and%20Chinese%20Domestic%20OEM%20Expansion) Nexteer showcased its latest motion control innovations at the 2025 Shanghai Auto Show, reinforcing its partnership with global and Chinese automakers - The company showcased its latest motion control innovations at the 2025 Shanghai Auto Show under the theme "Pioneering Motion Control at China Speed for the World – Vision, Velocity & Value"[32](index=32&type=chunk) - Featured technologies included Steer-by-Wire, Rear-Wheel Steering, and the public debut of its electromechanical Brake-by-Wire system[32](index=32&type=chunk) - Closed-door meetings were held with select OEMs to discuss future innovations and strategic collaboration opportunities[33](index=33&type=chunk) [Product Innovation and Industry Megatrends](index=13&type=section&id=Product%20Innovation%20and%20Industry%20Megatrends) In H1 2025, Nexteer launched new technologies and product upgrades to align with customer needs and industry megatrends - Released the **MotionIQ™ software suite** to simplify by-wire chassis development and vehicle health monitoring, offering precise motion control, accelerated development, and advanced predictive maintenance[34](index=34&type=chunk) - Launched a new electromechanical braking system, strategically expanding into by-wire chassis motion control to enhance vehicle safety, handling, and energy efficiency[36](index=36&type=chunk) - Introduced a new Rear-Wheel Steering system to improve handling, stability, and safety for heavier vehicles like trucks, SUVs, and EVs, securing two production contracts[36](index=36&type=chunk) - Expanded the HO CEPS product portfolio, increasing steering assist capability to **110 Nm** to support larger, heavier vehicles and enhance platform flexibility[36](index=36&type=chunk) - Launched innovative driveline products, including Face Spline Halfshafts, 8-Ball Constant Velocity Joints, and High-Offset Double Offset Joints, designed to meet EV and hybrid vehicle demands by optimizing ride performance, lightweighting, and NVH[37](index=37&type=chunk) [Technology Leadership Showcase](index=14&type=section&id=Technology%20Leadership%20Showcase) Nexteer's thought leaders demonstrated industry expertise by speaking at multiple global events on mobility megatrends and motion control technology - Nexteer experts participated in global industry events such as the Mexico Automotive Summit, Germany's "Chassis Tech Days 2025," and the 2025 US Automotive Chassis Systems event[39](index=39&type=chunk) [Customer and Industry Recognition](index=15&type=section&id=Customer%20and%20Industry%20Recognition) In H1 2025, Nexteer received numerous awards for quality and excellence from customers and industry bodies globally - The Ford Ranger, equipped with Nexteer's column, intermediate shaft, and REPS system, was named the **2025 North American Truck of the Year**[40](index=40&type=chunk) - Nexteer Suzhou, China, received the I&CIM's Fast World Cup Award and Zeekr's Excellent Supplier Award[40](index=40&type=chunk) - Nexteer Liuzhou, China, received GAC Group's Excellent Supplier Award, the Liudong New District Government's High-Quality Development Excellent Enterprise Award, and SGMW's Excellent KD Supplier and Excellent Supplier Awards[40](index=40&type=chunk) - Nexteer Pune, India, received Mahindra's Supplier Excellence Award, and Nexteer Chennai, India, received a Quality Award from the Quality Circle Forum of India[40](index=40&type=chunk) - Nexteer Wuhu, China, received Lynk & Co's Excellent Supplier Award, SGM's Quality Pioneer Award, SGM's Supplier Quality Excellence Award, and Nissan's 2024 Nissan China Investment Supplier Quality Excellence Award[40](index=40&type=chunk) [Financial Summary](index=16&type=section&id=Financial%20Summary) [Results for the Six Months Ended June 30, 2025](index=16&type=section&id=Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) For the six months ended June 30, 2025, revenue grew 6.8% year-over-year, while profit attributable to equity holders increased by 304.5% Results for the Six Months Ended June 30, 2025 (USD '000) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,242,248 | 2,098,927 | 6.8% | | Gross Profit | 258,907 | 210,927 | 22.7% | | Profit before income tax | 95,681 | 40,790 | 134.6% | | Income tax expense | 26,667 | 17,729 | 50.4% | | Profit attributable to equity holders of the Company | 63,480 | 15,695 | 304.5% | | Profit for the period | 69,014 | 23,061 | 199.3% | | Adjusted EBITDA | 230,353 | 197,295 | 16.8% | [Assets and Liabilities](index=16&type=section&id=Assets%20and%20Liabilities) As of June 30, 2025, total assets increased, driven by a 7.2% rise in current assets, while liabilities also grew moderately Assets and Liabilities as of June 30, 2025 (USD '000) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 1,811,366 | 1,794,818 | 0.9% | | Current assets | 1,805,185 | 1,684,324 | 7.2% | | Non-current liabilities | 323,213 | 296,861 | 8.9% | | Current liabilities | 1,185,107 | 1,152,380 | 2.8% | | Capital and reserves attributable to equity holders of the Company | 2,066,776 | 1,978,877 | 4.4% | [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Review](index=17&type=section&id=Financial%20Review) In H1 2025, revenue reached $2.2 billion, outperforming the market by 450 basis points, with Adjusted EBITDA growing 16.8% to $230.4 million H1 2025 Financial Review (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,200,000 | 2,056,700 | 6.8% | | Adjusted Revenue Growth | 7.6% | - | Outperformed market by 450 bps | | Adjusted EBITDA | 230,400 | 197,300 | 16.8% | | Cash Balance (End of Period) | 459,200 | 422,300 | 36,900 | | Net Cash from Operating Activities | 142,300 | 152,400 | (10,100) | - Improved profitability was primarily driven by higher sales volumes and enhanced efficiency, partially offset by net tariff costs in North America and impacts from two distressed suppliers[43](index=43&type=chunk) [Operating Environment](index=17&type=section&id=Operating%20Environment) The global automotive market directly impacts the company's business, with H1 2025 light vehicle production growth of 3.1% led by Asia Pacific H1 2025 Global Light Vehicle Production Year-over-Year Growth | Region | H1 2025 YoY Growth | | :--- | :--- | | North America | (4.2%) | | China | 12.3% | | India | 3.7% | | Europe | (3.7%) | | South America | 8.9% | - Fluctuations in the exchange rates of the US dollar against the RMB and Euro adversely affected the Group's revenue in H1 2025[46](index=46&type=chunk) - **31 new customer programs** were successfully launched in H1 2025, of which 23 were new or conquest business and 21 were for customer BEV programs[46](index=46&type=chunk) [Revenue Analysis](index=18&type=section&id=Revenue%20Analysis) H1 2025 revenue was $2.24 billion, a 6.8% year-over-year increase, outperforming the market by 450 basis points on an adjusted basis H1 2025 Revenue (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 2,242,248 | 2,098,927 | 6.8% | | Unfavorable Foreign Currency Translation | (13,000) | - | - | | Commodity Price Reduction Impact | (2,400) | - | - | | Adjusted Revenue Growth | 7.6% | - | Outperformed market by 450 bps | [Revenue by Geographic Segment](index=19&type=section&id=Revenue%20by%20Geographic%20Segment) The Asia Pacific segment led growth with a 15.5% increase, while North America also grew despite a regional production decline H1 2025 Revenue by Geographic Segment (USD '000) | Region | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | North America | 1,138,304 | 1,118,983 | 1.7% | | Asia Pacific | 686,533 | 594,578 | 15.5% | | EMEASA | 400,851 | 366,348 | 9.4% | | Other | 16,560 | 19,018 | (13.0%) | - After adjusting for foreign currency translation and commodity price reductions, Asia Pacific revenue grew by **16.7%**, outperforming regional OEM production growth by **870 basis points**[48](index=48&type=chunk) - The EMEASA segment's revenue, adjusted for currency translation and a slight commodity price increase, grew by **10.8%**, outperforming the regional OEM production decline by **1,330 basis points**[50](index=50&type=chunk) [Revenue by Product Line](index=20&type=section&id=Revenue%20by%20Product%20Line) The EPS product line revenue grew by 8.6% in H1 2025, primarily driven by increased customer demand in the Asia Pacific region H1 2025 Revenue by Product Line (USD '000) | Product Line | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | EPS | 1,525,379 | 1,404,555 | 8.6% | | CIS | 228,499 | 221,999 | 2.9% | | HPS | 91,624 | 90,129 | 1.7% | | DL | 396,746 | 382,244 | 3.8% | [Net Profit Attributable to Equity Holders](index=21&type=section&id=Net%20Profit%20Attributable%20to%20Equity%20Holders) Net profit attributable to equity holders for H1 2025 was $63.5 million, a significant increase of $47.8 million from the prior year Net Profit Attributable to Equity Holders (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Equity Holders of the Company | 63,500 | 15,700 | 47,800 | | Percentage of Total Revenue | 2.8% | 0.7% | - | - The increase in net profit was primarily due to a **$33.1 million increase in EBITDA** and the absence of a significant product development intangible asset impairment charge recorded in H1 2024[55](index=55&type=chunk) [Cost of Sales](index=21&type=section&id=Cost%20of%20Sales) Cost of sales in H1 2025 was $1.98 billion, a 5.0% year-over-year increase, with the cost of sales to revenue ratio improving to 88.5% Cost of Sales (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 1,983,341 | 1,888,000 | 5.0% | | Raw Material Costs | 1,479,635 | 1,339,211 | 10.5% | | Raw Material Costs as % of Revenue | 66.0% | 63.8% | - | | Cost of Sales as % of Revenue | 88.5% | 90.0% | (1.5%) | - Depreciation and amortization (including amortization of capitalized product development costs) deducted from cost of sales decreased by **2.5% to $128.2 million**[51](index=51&type=chunk) [Gross Profit](index=21&type=section&id=Gross%20Profit) Gross profit for H1 2025 was $259 million, a 22.7% year-over-year increase, with gross margin improving to 11.5% Gross Profit (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 258,907 | 210,927 | 22.7% | | Gross Margin | 11.5% | 10.0% | 1.5% | [Engineering and Product Development Costs](index=22&type=section&id=Engineering%20and%20Product%20Development%20Costs) Engineering and product development costs for H1 2025 were $75.4 million, a 14.9% decrease from the prior year Engineering and Product Development Costs (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Engineering and Product Development Costs | 75,400 | 88,600 | (14.9%) | | Percentage of Revenue | 3.4% | 4.2% | - | | Product Development Intangible Asset Impairment | 1,600 | 7,300 | (78.1%) | | Total Investment | 129,300 | 135,400 | (4.5%) | - Capitalized interest related to engineering development costs decreased from **$3.4 million to $2.0 million**[56](index=56&type=chunk) [Selling, Distribution, and General and Administrative Expenses](index=22&type=section&id=Selling%2C%20Distribution%2C%20and%20General%20and%20Administrative%20Expenses) Selling, distribution, and general and administrative expenses for H1 2025 were $92.2 million, an 11.9% increase from the prior year Selling, Distribution, and General and Administrative Expenses (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Selling, Distribution, and General and Administrative Expenses | 92,200 | 82,400 | 11.9% | | Percentage of Revenue | 4.1% | 3.9% | - | [Other Gains, Net](index=22&type=section&id=Other%20Gains%2C%20Net) Other gains, net for H1 2025 were $1.8 million, an increase of $0.4 million compared to the prior year period Other Gains, Net (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Other Gains, Net | 1,800 | 1,400 | 0.4% | [Finance Income / Finance Costs](index=22&type=section&id=Finance%20Income%20%2F%20Finance%20Costs) The company recorded net finance income of $0.8 million in H1 2025, compared to net finance costs of $2.2 million in the prior year period Finance Income / Finance Costs (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Finance Income | 800 | (2,200) | 3,000 | - The reduction in finance costs was primarily due to fluctuations in short-term borrowings[60](index=60&type=chunk) [Share of Results of a Joint Venture](index=23&type=section&id=Share%20of%20Results%20of%20a%20Joint%20Venture) The company's share of results from its joint venture, Chongqing Nexteer Steering Systems Co, Ltd, was $1.8 million in H1 2025 Share of Joint Venture Results (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Share of Joint Venture Results | 1,800 | 1,700 | 0.1% | [Income Tax Expense](index=23&type=section&id=Income%20Tax%20Expense) Income tax expense for H1 2025 was $26.7 million, representing 27.9% of profit before tax Income Tax Expense (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 26,700 | 17,700 | 8,900 | | Percentage of Profit Before Tax | 27.9% | 43.5% | - | - The company has assessed the Pillar Two legislation and does not expect to incur significant liability for Pillar Two income taxes[63](index=63&type=chunk) - The company is currently evaluating the potential impact of the relevant tax provisions under the US Tax Relief for American Families and Workers Act of 2024 on its consolidated financial statements[63](index=63&type=chunk) [Provisions](index=23&type=section&id=Provisions) Total provisions as of June 30, 2025, were $110.9 million, an increase of $11.2 million from year-end 2024 Provisions (USD '000) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Provisions | 110,900 | 99,800 | 11,200 | | Net Additions to Warranty Reserve | 26,700 | - | - | | Cash Payments for Past Warranty Provisions | 18,400 | - | - | [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company funds its significant working capital needs through cash from operations and third-party financing - The company primarily meets its working capital and other capital requirements through cash generated from operations and borrowings from third-party financial institutions[65](index=65&type=chunk) - The company utilizes a global cash pooling arrangement to consolidate and manage global cash balances, enhancing cash management efficiency[65](index=65&type=chunk) [Cash Flow from Operating Activities](index=24&type=section&id=Cash%20Flow%20from%20Operating%20Activities) Net cash generated from operating activities in H1 2025 was $142.3 million, a decrease of $10.1 million from the prior year period Cash Flow from Operating Activities (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 142,316 | 152,387 | (10,071) | [Cash Flow Used in Investing Activities](index=25&type=section&id=Cash%20Flow%20Used%20in%20Investing%20Activities) Net cash used in investing activities in H1 2025 was $105.7 million, a decrease of $49.0 million from the prior year period Cash Flow Used in Investing Activities (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Purchase of property, plant and equipment | (54,994) | (91,185) | 36,191 | | Additions to intangible assets | (55,491) | (54,094) | (1,397) | | Additions to right-of-use assets | – | (8,826) | 8,826 | | Net cash used in investing activities | (105,650) | (154,648) | 48,998 | [Cash Flow Used in Financing Activities](index=25&type=section&id=Cash%20Flow%20Used%20in%20Financing%20Activities) Net cash used in financing activities in H1 2025 was $11.7 million, a decrease of $8.0 million from the prior year period Cash Flow Used in Financing Activities (USD '000) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash used in financing activities | (11,730) | (19,703) | 7,973 | [Indebtedness](index=26&type=section&id=Indebtedness) Total borrowings as of June 30, 2025, were $48.7 million, a slight increase due to foreign exchange impacts on RMB-denominated loans Total Borrowings (USD '000) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Borrowings | 48,680 | 47,762 | 918 | - The increase in borrowings was primarily due to foreign exchange impacts on RMB-denominated term loans in China[69](index=69&type=chunk) [Pledge of Assets](index=26&type=section&id=Pledge%20of%20Assets) Total assets pledged as collateral as of June 30, 2025, were approximately $835.6 million, an increase of $107.7 million Total Pledged Assets (USD '000) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Pledged Assets | 835,600 | 724,100 | 107,700 | - Pledged assets include trade receivables, inventories, and property, plant and equipment[70](index=70&type=chunk) [Foreign Exchange Fluctuation Risk and Related Hedging](index=27&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk%20and%20Related%20Hedging) The company mitigates foreign currency risk by matching material purchases and finished goods sales in the same currency - The company seeks to limit its foreign currency risk by matching material purchases with sales of finished goods in the same currency[71](index=71&type=chunk) - The company regularly monitors its remaining foreign currency risk to reduce the volatility of its operations[71](index=71&type=chunk) [Gearing Ratio](index=27&type=section&id=Gearing%20Ratio) The gearing ratio as of June 30, 2025, was 2.3%, a decrease of 10 basis points from year-end 2024 Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 2.3% | 2.4% | (0.1%) | [Future Prospects](index=27&type=section&id=Future%20Prospects) The company is committed to maintaining its market leadership in global motion control technologies by aligning with key industry megatrends - The company is committed to maintaining its market leadership in global motion control technologies, including advancements in by-wire chassis[74](index=74&type=chunk) - The company's future prospects are enhanced by five key strengths: continuous innovation, product portfolio depth and breadth, system integration experience, in-house R&D capabilities, and a global manufacturing footprint[74](index=74&type=chunk)[77](index=77&type=chunk) - The company's product lines are well-aligned with megatrends such as ADAS, software and connectivity, electrification, and shared mobility[74](index=74&type=chunk) [Employee Remuneration Policy](index=28&type=section&id=Employee%20Remuneration%20Policy) As of June 30, 2025, the company employed approximately 12,000 full-time employees and 1,800 contract staff Employee Headcount | Employee Type | Number | | :--- | :--- | | Full-time Employees | Approx 12,000 | | Contract Staff | Approx 1,800 | - Remuneration policies are based on individual performance and the Group's results and are reviewed regularly[78](index=78&type=chunk) - The company offers various employee benefit plans, including retirement benefits, extended disability benefits, workers' compensation, and employee incentive plans[78](index=78&type=chunk) [Forward-Looking Statements](index=28&type=section&id=Forward-Looking%20Statements) Forward-looking statements in this interim report are based on current plans and estimates and involve risks and uncertainties - Forward-looking statements and opinions are based on current plans, estimates, and projections and involve risks and uncertainties[80](index=80&type=chunk) - Actual results may differ materially from those discussed in the forward-looking statements and opinions[80](index=80&type=chunk) - The company, its directors, and employees assume no obligation or liability to correct or update any forward-looking statements or opinions[80](index=80&type=chunk) [Corporate Governance / Other Information](index=29&type=section&id=Corporate%20Governance%20%2F%20Other%20Information) [Corporate Governance Practices](index=29&type=section&id=Corporate%20Governance%20Practices) The company is committed to high standards of corporate governance and has complied with all applicable code provisions in H1 2025 - The company is committed to maintaining high standards of corporate governance and has adopted internal control and corporate governance policies[82](index=82&type=chunk) - The Board believes the company has complied with all applicable code provisions of the Hong Kong Corporate Governance Code during H1 2025[82](index=82&type=chunk) [Chairman and Chief Executive Officer](index=29&type=section&id=Chairman%20and%20Chief%20Executive%20Officer) The roles of Chairman and CEO are currently combined, a deviation from listing rules that the Board believes provides consistent leadership - Mr LEI Zili has served as both Chairman of the Board and CEO from June 21, 2022, to August 13, 2025[84](index=84&type=chunk) - Mr DING Fengtao will be appointed as Chairman and CEO effective August 13, 2025, which deviates from Code Provision C.2.1 of Appendix C1 to the Listing Rules[84](index=84&type=chunk) - The Board believes this structure provides consistent leadership for the Group's future and more effective implementation of its overall strategy without compromising the balance of power and authority[84](index=84&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=30&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code for securities transactions by directors, and all directors have confirmed compliance for H1 2025 - The company has adopted the Model Code as set out in Appendix C3 to the Listing Rules as its code of conduct for securities transactions by directors[86](index=86&type=chunk) - All directors have confirmed their compliance with the required standards set out in the Model Code throughout H1 2025[86](index=86&type=chunk) - The company maintains and regularly reviews a list of sensitive information and takes appropriate measures to maintain its confidentiality[87](index=87&type=chunk) [Risk Management and Internal Control](index=30&type=section&id=Risk%20Management%20and%20Internal%20Control) The company has adopted and periodically reviews its risk management and internal control systems and related procedures - The company has adopted risk management and internal control systems and related procedures, and reviews their effectiveness from time to time[88](index=88&type=chunk) [Changes in Directors' Biographical Details under Rule 13.51B(1) of the Listing Rules](index=30&type=section&id=Changes%20in%20Directors'%20Biographical%20Details%20under%20Rule%2013.51B(1)%20of%20the%20Listing%20Rules) Several changes in director roles and external appointments occurred, including upcoming leadership transitions effective August 13, 2025 - Dr WANG Bin retired as an independent director of UBS Securities Co, Limited in March 2025[89](index=89&type=chunk) - Mr DING Fengtao will be appointed as an Executive Director, Chairman, CEO, and an authorized representative effective August 13, 2025[89](index=89&type=chunk) - Mr LEI Zili will resign as Chairman and CEO, be re-designated from an Executive Director to a Non-executive Director, and cease to be an authorized representative effective August 13, 2025[90](index=90&type=chunk) [Interim Dividend](index=31&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[92](index=92&type=chunk) [Audit and Compliance Committee and Review of Unaudited Condensed Consolidated Interim Financial Information](index=31&type=section&id=Audit%20and%20Compliance%20Committee%20and%20Review%20of%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) The Audit and Compliance Committee has reviewed the unaudited interim financial information for H1 2025 with no disagreements - The Audit and Compliance Committee has reviewed the Company's unaudited condensed financial information for the six months ended June 30, 2025, together with management and the external auditor[93](index=93&type=chunk) - There were no disagreements between the Audit and Compliance Committee and the auditor regarding the accounting treatments adopted by the Company[93](index=93&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities during H1 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[94](index=94&type=chunk) [Share Option Scheme](index=31&type=section&id=Share%20Option%20Scheme) The company's 2014 Share Option Scheme expired on June 5, 2024, with 4,626,240 options outstanding but unexercised as of the period end - The Share Option Scheme expired on June 5, 2024, and no options are available for grant as of June 30, 2025[95](index=95&type=chunk)[97](index=97&type=chunk) - No options under the Share Option Scheme were vested during the six months ended June 30, 2025[96](index=96&type=chunk) - As of June 30, 2025, the weighted average remaining contractual life of outstanding options was **6.1 years**, with exercise prices ranging from **HK$4.268 to HK$12.456**[179](index=179&type=chunk) Share Option Scheme Summary as of June 30, 2025 | Category | Options held at Jan 1, 2025 ('000) | Options cancelled/lapsed during the interim period ('000) | Options held at Jun 30, 2025 ('000) | | :--- | :--- | :--- | :--- | | Directors | 1,843.54 | (117.05) | 1,726.49 | | Other employees | 2,899.75 | 0 | 2,899.75 | | Total | 4,743.29 | (117.05) | 4,626.24 | [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=33&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, several directors held long positions in the company's shares through share options Directors' Interests in Underlying Shares of the Company (via Share Options) | Name | Number of underlying shares of the Company held | Approximate percentage of total issued shares | | :--- | :--- | :--- | | LEI Zili | 555,990 (L) | 0.02% | | MILAVEC, Robin Zane | 1,053,450 (L) | 0.04% | | ZHANG Wendong | 117,050 (L) | <0.01% | - The calculation is based on the total number of issued shares of **2,509,824,293** as of June 30, 2025[103](index=103&type=chunk) [Directors' Rights to Purchase Shares or Debentures](index=34&type=section&id=Directors'%20Rights%20to%20Purchase%20Shares%20or%20Debentures) No directors or their associates were granted or exercised any rights to acquire shares or debentures of the company during H1 2025 - For the six months ended June 30, 2025, no director or their respective spouse or children under 18 were granted any rights to acquire benefits by means of the acquisition of shares in or debentures of the Company or any of its subsidiaries, nor have they exercised any such rights[104](index=104&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=34&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, AVIC Auto and its related entities held a 44.03% interest, while Beijing E-Town International held an 18.98% interest Substantial Shareholders' Interests in Shares and Underlying Shares | Name | Number of Shares | Approximate percentage of total issued shares | | :--- | :--- | :--- | | Nexteer Automotive (Hong Kong) Holdings Limited | 1,105,000,000 (L) | 44.03% | | Pacific Century (Beijing) Automotive Components Co, Ltd | 1,105,000,000 (L) | 44.03% | | AVIC Automobile Industry Holding Co, Ltd | 1,105,000,000 (L) | 44.03% | | Aviation Industry Corporation of China, Ltd | 1,105,000,000 (L) | 44.03% | | Beijing E-Town International Investment & Development Co, Ltd | 476,372,000 (L) | 18.98% | | Beijing E-Town International Automotive Investment Management Co, Ltd | 476,372,000 (L) | 18.98% | - Nexteer Hong Kong is wholly owned by Pacific Century (Beijing) Automotive, which is owned 72.88% by AVIC Auto and 27.12% by Beijing E-Town International Automotive Investment Management Co, Ltd[105](index=105&type=chunk) - AVIC Auto is 70.11% owned by Aviation Industry Corporation of China, Ltd (AVIC)[105](index=105&type=chunk) [Review Report on the Condensed Consolidated Interim Financial Information](index=35&type=section&id=Review%20Report%20on%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [Introduction](index=35&type=section&id=Introduction) Deloitte Touche Tohmatsu has reviewed the H1 2025 interim financial information, which was prepared in accordance with IAS 34 - Deloitte Touche Tohmatsu has reviewed the condensed consolidated interim financial information of the Company for the six months ended June 30, 2025[107](index=107&type=chunk) - The condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[107](index=107&type=chunk) [Scope of Review](index=35&type=section&id=Scope%20of%20Review) The review was conducted in accordance with ISRE 2410, with a scope substantially less than an audit, and no audit opinion is expressed - The review was conducted in accordance with International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the International Auditing and Assurance Standards Board[108](index=108&type=chunk) - The scope of a review is substantially less than that of an audit conducted in accordance with International Standards on Auditing, and consequently, it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit; accordingly, we do not express an audit opinion[108](index=108&type=chunk) [Conclusion](index=35&type=section&id=Conclusion) Based on the review, nothing has come to attention that causes the belief that the interim financial information is not prepared in accordance with IAS 34 - Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[109](index=109&type=chunk) [Condensed Consolidated Interim Balance Sheet](index=36&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheet) [Assets](index=36&type=section&id=Assets) As of June 30, 2025, the company's total assets were $3.62 billion, including $1.81 billion in non-current assets and $1.81 billion in current assets Condensed Consolidated Interim Balance Sheet - Assets (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 995,670 | 981,141 | | Right-of-use assets | 43,549 | 48,283 | | Intangible assets | 674,615 | 675,428 | | Deferred income tax assets | 48,239 | 41,566 | | Investment in a joint venture | 24,476 | 22,715 | | Income tax receivable | 4,288 | 5,997 | | Other receivables and prepayments | 20,530 | 19,688 | | **Total non-current assets** | **1,811,367** | **1,794,818** | | **Current assets** | | | | Inventories | 309,606 | 283,826 | | Trade receivables | 841,442 | 820,395 | | Notes receivable | 86,605 | 58,114 | | Income tax receivable | 637 | 954 | | Other receivables and prepayments | 107,662 | 98,743 | | Restricted bank deposits | 14 | 14 | | Cash and cash equivalents | 459,219 | 422,278 | | **Total current assets** | **1,805,185** | **1,684,324** | | **Total assets** | **3,616,552** | **3,479,142** | [Equity and Liabilities](index=37&type=section&id=Equity%20and%20Liabilities) As of June 30, 2025, total equity was $2.11 billion, and total liabilities were $1.51 billion Condensed Consolidated Interim Balance Sheet - Equity and Liabilities (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Equity** | | | | Share capital | 32,377 | 32,377 | | Other reserves | (12,731) | (58,985) | | Retained earnings | 2,047,130 | 2,005,485 | | **Capital and reserves attributable to equity holders of the Company** | **2,066,776** | **1,978,877** | | Non-controlling interests | 41,456 | 51,024 | | **Total equity** | **2,108,232** | **2,029,901** | | **Non-current liabilities** | | | | Lease liabilities | 32,198 | 27,950 | | Borrowings | 48,541 | 47,625 | | Retirement benefits and compensation | 20,825 | 20,883 | | Deferred income tax liabilities | 1,409 | 1,754 | | Provisions | 79,528 | 59,863 | | Deferred income | 107,313 | 108,062 | | Other payables and accruals | 33,399 | 30,724 | | **Total non-current liabilities** | **323,213** | **296,861** | | **Current liabilities** | | | | Trade payables | 890,073 | 873,172 | | Other payables and accruals | 203,690 | 169,017 | | Current income tax liabilities | 21,323 | 25,782 | | Retirement benefits and compensation | 2,709 | 3,163 | | Provisions | 31,399 | 39,898 | | Deferred income | 24,382 | 25,329 | | Borrowings | 139 | 137 | | Lease liabilities | 11,392 | 15,882 | | **Total current liabilities** | **1,185,107** | **1,152,380** | | **Total liabilities** | **1,508,320** | **1,449,241** | | **Total equity and liabilities** | **3,616,552** | **3,479,142** | [Condensed Consolidated Interim Income Statement](index=38&type=section&id=Condensed%20Consolidated%20Interim%20Income%20Statement) [For the Six Months Ended June 30, 2025](index=38&type=section&id=For%20the%20Six%20Months%20Ended%20June%2030%2C%202025) For H1 2025, the company generated revenue of $2.24 billion and profit for the period of $69.0 million Condensed Consolidated Interim Income Statement (USD '000) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 2,242,248 | 2,098,927 | | Cost of sales | (1,983,341) | (1,888,000) | | Gross profit | 258,907 | 210,927 | | Engineering and product development costs | (75,393) | (88,628) | | Selling and distribution expenses | (10,704) | (10,790) | | Administrative expenses | (81,474) | (71,622) | | Other gains, net | 1,792 | 1,424 | | Operating profit | 93,128 | 41,311 | | Finance income | 4,182 | 3,131 | | Finance costs | (3,390) | (5,309) | | Share of results of a joint venture | 1,761 | 1,657 | | Profit before income tax | 95,681 | 40,790 | | Income tax expense | (26,667) | (17,729) | | Profit for the period | 69,014 | 23,061 | | Profit for the period attributable to equity holders of the Company | 63,480 | 15,695 | | Profit for the period attributable to non-controlling interests | 5,534 | 7,366 | | Basic and diluted earnings per share (USD) | 0.025 | 0.006 | [Condensed Consolidated Interim Statement of Comprehensive Income](index=39&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) [For the Six Months Ended June 30, 2025](index=39&type=section&id=For%20the%20Six%20Months%20Ended%20June%2030%2C%202025) For H1 2025, total comprehensive income was $116.2 million, including a positive currency translation difference of $47.2 million Condensed Consolidated Interim Statement of Comprehensive Income (USD '000) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the period | 69,014 | 23,061 | | Exchange differences on translation | 47,187 | (25,256) | | Total comprehensive income (loss) for the period | 116,201 | (2,195) | | Total comprehensive income (loss) attributable to equity holders of the Company | 109,734 | (8,330) | | Total comprehensive income attributable to non-controlling interests | 6,467 | 6,135 | [Condensed Consolidated Interim Statement of Changes in Equity](index=40&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) [For the Six Months Ended June 30, 2025](index=40&type=section&id=For%20the%20Six%20Months%20Ended%20June%2030%2C%202025) Equity attributable to the company's equity holders increased from $1.98 billion to $2.07 billion during H1 2025 Condensed Consolidated Interim Statement of Changes in Equity (USD '000) | Metric | At January 1, 2025 | Total comprehensive income | Dividends paid to shareholders | Dividends paid to non-controlling interests | At June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Capital and reserves attributable to equity holders of the Company | 1,978,877 | 109,734 | (21,835) | - | 2,066,776 | | Non-controlling interests | 51,024 | 6,467 | - | (16,035) | 41,456 | | Total | 2,029,901 | 116,201 | (21,835) | (16,035) | 2,108,232 | [Condensed Consolidated Interim Statement of Cash Flows](index=41&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) [For the Six Months Ended June 30, 2025](index=41&type=section&id=For%20the%20Six%20Months%20Ended%20June%2030%2C%202025) For H1 2025, net cash from operations was $142.3 million, resulting in a period-end cash balance of $459.2 million Condensed Consolidated Interim Statement of Cash Flows (USD '000) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash generated from operating activities | 142,316 | 152,387 | | Net cash used in investing activities | (105,650) | (154,648) | | Net cash used in financing activities | (11,730) | (19,703) | | Net increase (decrease) in cash and cash equivalents | 24,936 | (21,964) | | Cash and cash equivalents at beginning of period | 422,278 | 311,741 | | Effect of exchange rate changes on cash and cash equivalents | 12,005 | (9,941) | | Cash and cash equivalents at end of period | 459,219 | 279,836 | [Notes to the Condensed Consolidated Interim Financial Information](index=42&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [General Information](index=42&type=section&id=General%20Information) Nexteer Automotive Group Limited is a Cayman Islands-incorporated company engaged in designing and manufacturing steering and driveline systems - The Company was incorporated in the Cayman Islands as an exempted limited company on August 21, 2012, under the Companies Act (as revised) of the Cayman Islands[119](index=119&type=chunk) - The Group is principally engaged in the business of designing and manufacturing steering and driveline systems and components, including advanced driver-assistance systems and automated driving, for automobile manufacturers and other automotive-related companies[119](index=119&type=chunk) - The Group operates primarily in the United States, Mexico, China, Poland, India, Morocco, and Brazil, with major markets in North America, Europe, South America, China, and India[119](index=119&type=chunk) - Aviation Industry Corporation of China, Ltd is the ultimate holding company of the Company[119](index=119&type=chunk) [Basis of Preparation](index=42&type=section&id=Basis%20of%20Preparation) The financial information is prepared in accordance with IAS 34 and should be read in conjunction with the 2024 annual financial statements - The condensed financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[122](index=122&type=chunk) - This condensed financial information should be read in conjunction with the annual financial statements for the year ended December 31, 2024[122](index=122&type=chunk) [Accounting Policies](index=43&type=section&id=Accounting%20Policies) The accounting policies applied are consistent with those used in the 2024 annual financial statements - The accounting policies applied are consistent with those used in the annual financial statements for the year ended December 31, 2024[123](index=123&type=chunk) - The Group has adopted the amendments to IAS 21 "Lack of Exchangeability," but it did not have a significant impact on the condensed financial information[124](index=124&type=chunk)[125](index=125&type=chunk) [Critical Accounting Estimates and Judgements](index=43&type=section&id=Critical%20Accounting%20Estimates%20and%20Judgements) The preparation of this financial information requires management to make judgements and estimates consistent with those applied in the 2024 annual report - The preparation of condensed financial information requires management to make judgements, estimates, and assumptions, and actual results may differ from these estimates[126](index=126&type=chunk) - The significant judgements made by management in applying accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended December 31, 2024[126](index=126&type=chunk) [Financial Instruments](index=44&type=section&id=Financial%20Instruments) The carrying amounts of the Group's current financial assets and liabilities approximate their fair values - The carrying amounts of the Group's current financial assets and liabilities approximate their fair values[127](index=127&type=chunk) - Notes receivable are measured at fair value through other comprehensive income and are classified within Level 2 of the fair value hierarchy[127](index=127&type=chunk) - Level 1 fair value measurements are for financial instruments traded in active markets; Level 2 are for those not traded in active markets but for which all significant inputs are observable; Level 3 are for those where one or more significant inputs are not based on observable market data[129](index=129&type=chunk) [Revenue and Segment Information](index=45&type=section&id=Revenue%20and%20Segment%20Information) The Group generates revenue from contracts with OEMs for steering and driveline systems, with operations organized into three reportable segments - The Group generally enters into contracts with OEM customers to sell steering and driveline systems and components, and to provide tooling and prototypes[130](index=130&type=chunk) - The Group has organized its business into three reportable segments: North America, Asia Pacific, and EMEASA[135](index=135&type=chunk) - The key performance indicator monitored by the Group for managing segment operations is Adjusted EBITDA[136](index=136&type=chunk) [Revenue from Contracts with Customers](index=45&type=section&id=Revenue%20from%20Contracts%20with%20Customers) Revenue is primarily derived from production parts, tooling, and engineering services, with recognition based on the satisfaction of performance obligations - Revenue from production parts is recognized upon shipment to the customer and transfer of title and risk of loss[132](index=132&type=chunk) - Tooling revenue is recognized over time using an input method based on costs incurred to date for customer-reimbursable tooling[132](index=132&type=chunk) - Non-production related engineering design and development/prototype revenue is recognized over time using an input method[132](index=132&type=chunk) Contract Balances (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current contract assets | 36,937 | 46,219 | | Current contract liabilities | 24,382 | 25,329 | | Non-current contract liabilities | 107,313 | 108,062 | [Segment Information](index=46&type=section&id=Segment%20Information) The company presents results across three segments: North America, Asia Pacific, and EMEASA, with General Motors being the largest customer H1 2025 Revenue by Geographic Segment (USD '000) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | North America | 1,138,304 | 1,118,983 | | Asia Pacific | 686,533 | 594,578 | | EMEASA | 400,851 | 366,348 | | Other | 16,560 | 19,018 | | Total | 2,242,248 | 2,098,927 | H1 2025 Revenue by Product Line (USD '000) | Product Line | H1 2025 | H1 2024 | | :--- | :--- | :--- | | EPS | 1,525,379 | 1,404,555 | | CIS | 228,499 | 221,999 | | HPS | 91,624 | 90,129 | | DL | 396,746 | 382,244 | | Total | 2,242,248 | 2,098,927 | H1 2025 Revenue from Major Customers (USD '000) | Customer | H1 2025 | H1 2024 | | :--- | :--- | :--- | | General Motors | 771,142 | 754,995 | | Customer A | 414,764 | 408,694 | | Customer B | 349,576 | 342,660 | [Property, Plant and Equipment and Intangible Assets](index=52&type=section&id=Property%2C%20Plant%20and%20Equipment%20and%20Intangible%20Assets) As of June 30, 2025, the net book value of property, plant and equipment was $996 million, and intangible assets were $675 million Net Book Value of Property, Plant and Equipment and Intangible Assets (USD '000) | Metric | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Property, plant and equipment | 995,670 | 1,000,227 | | Intangible assets | 674,615 | 732,560 | - During the period ended June 30, 2025, additions to product development costs (including capitalized interest) were **$57.54 million**[143](index=143&type=chunk) - For the six months ended June 30, 2025, the Group recorded an impairment of product development intangible assets of **$1.58 million** related to the cancellation of specific customer projects, a significant decrease from **$37.7 million** in the prior year period[146](index=146&type=chunk) - The carrying amount of property, plant and equipment pledged as collateral was **$240.64 million** as of June 30, 2025[146](index=146&type=chunk) [Leases](index=54&type=section&id=Leases) The Group's leases primarily consist of real estate, equipment, and vehicles, with total right-of-use assets of $43.55 million Right-of-Use Assets and Lease Liabilities (USD '000) | Metric | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Total right-of-use assets | 43,549 | 48,283 | | Total present value of lease liabilities | 43,590 | 43,832 | | Total cash outflow for leases (H1) | 9,134 | 17,723 | - Additions to right-of-use assets during the six months ended June 30, 2025, amounted to **$5.31 million**[148](index=148&type=chunk) - Interest on lease liabilities for the six months ended June 30, 2025, was **$1.39 million**[151](index=151&type=chunk) [Trade Receivables](index=56&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were $841 million, with credit periods generally ranging from 30 to 90 days Trade Receivables (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross trade receivables | 848,264 | 827,051 | | Less: Provision for impairment | (6,822) | (6,656) | | Net trade receivables | 841,442 | 820,395 | | Carrying amount of pledged trade receivables | 493,624 | 367,049 | - Credit periods generally range from 30 to 90 days from the invoice date, depending on the customer and region[153](index=153&type=chunk) [Notes Receivable](index=57&type=section&id=Notes%20Receivable) As of June 30, 2025, the amount of uncollected notes receivable was $86.6 million Notes Receivable (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Amount of uncollected notes receivable | 86,605 | 58,114 | - Notes receivable are measured at fair value through other comprehensive income[155](index=155&type=chunk) [Other Receivables and Prepayments](index=58&type=section&id=Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total other receivables and prepayments were $128 million, with a current portion of $108 million Other Receivables and Prepayments (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Other taxes recoverable | 32,764 | 17,219 | | Prepaid assets | 40,822 | 38,324 | | Contract assets | 36,937 | 46,219 | | Total other receivables and prepayments | 128,192 | 118,431 | | Current portion | 107,662 | 98,743 | [Share Capital](index=58&type=section&id=Share%20Capital) As of June 30, 2025, the company had 2,509,824,293 issued and fully paid ordinary shares Share Capital Information | Metric | June 30, 2025 | | :--- | :--- | | Number of issued and fully paid ordinary shares | 2,509,824,293 | | Par value per share | HK$0.10 | | Total amount | HK$250,982,429 | [Borrowings](index=59&type=section&id=Borrowings) As of June 30, 2025, total borrowings were $48.7 million, with a weighted average annual interest rate of 2.7% Total Borrowings and Maturity Profile (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current bank borrowings | 48,668 | 47,816 | | Current bank borrowings | 139 | 137 | | Total borrowings | 48,680 | 47,762 | | Due within 1 year | 139 | 137 | | Due in 1 to 2 years | 139 | 137 | | Due in 2 to 5 years | 48,402 | 47,488 | - A subsidiary of the company has an unsecured credit facility balance of **$48.81 million**, maturing in October 2027[160](index=160&type=chunk) - A subsidiary of the company has access to **$323 million** of a revolving credit facility (totaling $325 million), secured by trade receivables, inventories, and machinery and equipment[160](index=160&type=chunk) - The weighted average annual interest rate was **2.7%** (December 31, 2024: 4.1%)[165](index=165&type=chunk) [Provisions](index=61&type=section&id=Provisions) As of June 30, 2025, total provisions were $110.9 million, primarily for warranty, environmental, and litigation matters Movement in Provisions (USD '000) | Metric | At Jan 1, 2025 | Net additions | Payments | Exchange differences | At Jun 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Litigation | 858 | 172 | (50) | 81 | 1,061 | | Environmental liabilities | 11,937 | 2 | (63) | 5 | 11,881 | | Warranty | 74,477 | 26,739 | (18,428) | 2,427 | 85,215 | | Shutdown claims | 10,729 | 229 | – | 52 | 11,010 | | Other provisions | 1,760 | – | – | – | 1,760 | | Total | 99,761 | 27,142 | (18,541) | 2,565 | 110,927 | - The increase in warranty provisions was mainly due to net additions of **$26.7 million** and cash payments of **$18.4 million** for past warranty provisions[167](index=167&type=chunk) [Deferred Income](index=63&type=section&id=Deferred%20Income) As of June 30, 2025, total deferred income was $131.7 million, primarily related to pre-production activities Deferred Income (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current deferred income | 24,382 | 25,329 | | Non-current deferred income | 107,313 | 108,062 | | Total deferred income | 131,695 | 133,391 | - Deferred income is primarily related to pre-production activities and is recognized over the relevant project life cycle (typically four to seven years)[170](index=170&type=chunk) [Trade Payables](index=64&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables were $890 million, with the majority aged between 0 and 60 days Trade Payables (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 843,721 | 821,874 | | Notes payable | 46,352 | 51,298 | | Total trade payables | 890,073 | 873,172 | Aging Analysis of Trade Payables (USD '000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 414,016 | 391,589 | | 31 to 60 days | 259,085 | 243,284 | | 61 to 90 days | 129,567 | 135,169 | [Other Payables and Accruals](index=65&type=section&id=Other%20Payables%20and%20Accruals) As of June 30, 2025, total other payables and accruals were $237 million, with a current portion of $204 million Other Payables and Accruals (USD '000) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued expenses | 173,205 | 164,167 | | Dividends payable to equity holders of the Company | 21,835 | – | | Dividends payable to non-controlling interests | 16,065 | – | | Total other payables and accruals | 237,089 | 199,741 | | Current portion | 203,690 | 169,017 | [Other Gains, Net](index=65&type=section&id=Other%20Gains%2C%20Net) Other gains, net for H1 2025 were $1.8 million, primarily from other income offsetting net foreign exchange losses Other Gains, Net (USD '000) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net foreign exchange loss | (7,038) | (253) | | Gain (loss) on disposal of property, plant and equipment | 262 | (1,497) | | Others | 8,568 | 3,174 | | Total | 1,792 | 1,424 | [Expenses by Nature](index=66&type=section&id=Expenses%20by%20Nature) Total expenses for H1 2025 were $2.15 billion, with raw material costs accounting for $1.48 billion Expenses by Nature (USD '000) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Raw materials (including work-in-progress and finished goods) | 1,479,635 | 1,339,211 | | Employee labor and benefit costs | 302,559 | 322,679 | | Depreciation of property, plant and equipment | 70,492 | 72,866 | | Amortization of intangible assets | 60,811 | 60,186 | | Impairment expense on intangible assets | 1,579 | 37,699 | | Customer compensation income related to impairment | (2,643) | (24,000) | | Total cost of sales, engineering and product development costs, selling and distribution, and administrative expenses | 2,150,912 | 2,059,040 | [Share-Based Payments](index=67&type=section&id=Share-Based%20Payments) The company operates a Value Creation Plan, while its Share Option Scheme expired in June 2024 - The company has a Share Option Scheme (expired on June 5, 2024) and a Value Creation Plan (comprising Restricted Measurement Units and Performance Measurement Units)[176](index=176&type=chunk)[180](index=180&type=chunk) - For the six months ended June 30, 2025, the total fair value of Restricted Measurement Units and Performance Measurement Units charged to the condensed financial information was **$2.66 million**[182](index=182&type=chunk) [Share Options](index=67&type=section&id=Share%20Options) The Share Option Scheme expired on June 5, 2024, with 4,626,240 options outstanding at the end of H1 2025 Movement in Outstanding Share Options | Metric | Weighted average exercise price (HK$) | Outstanding options ('000) | | :--- | :--- | :--- | | At January 1, 2025 | 5.830 |

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部 或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 KUANGCHI SCIENCE LIMITED 光啟科學有限公司 （於百慕達註冊成立之有限公司） （股份代號：439） 截至二零二五年六月三十日止六個月之 中期業績公佈 光 啟 科 學 有 限 公 司（「本公司」）董 事 會（「董事會」）宣 佈 本 公 司 及 其 附 屬 公 司（「本 集 團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月（「本期間」）之 未 經 審 核 中 期 業 績 連 同 二 零 二 四 年 同 期（「比較期間」）之 比 較 數 字 如 下： – 1 – 簡明綜合損益表 截至二零二五年六月三十日止六個月 | | | | | | | 截至六月三十日止六個月 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | 二零二五年 | 二零二四年 | | | | | | 附 ...

[Announcement Information](index=1&type=section&id=Announcement%20Information) This section presents the disclaimer, company information, and introduction to the unaudited interim results for the period [Disclaimer](index=1&type=section&id=Disclaimer) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content of this announcement, do not guarantee its accuracy or completeness, and expressly disclaim any liability for losses arising from reliance on its contents - Hong Kong Exchanges and the Stock Exchange are not responsible for the content of this announcement, nor do they guarantee its accuracy or completeness[1](index=1&type=chunk) - No liability is assumed for any losses arising from reliance on the content of this announcement[1](index=1&type=chunk) [Company Information and Announcement Title](index=1&type=section&id=Company%20Information%20and%20Announcement%20Title) CHINA TIAN YUAN HEALTHCARE GROUP LIMITED (Stock Code: 557) issued its unaudited consolidated interim results announcement for the six months ended June 30, 2025 - Company Name: CHINA TIAN YUAN HEALTHCARE GROUP LIMITED (中國天元醫療集團有限公司)[3](index=3&type=chunk) - Stock Code: **557**[3](index=3&type=chunk) - Announcement Type: 2025 Interim Results Announcement, covering unaudited consolidated results for the six months ended June 30, 2025[3](index=3&type=chunk) [Introduction to Results Announcement](index=1&type=section&id=Introduction%20to%20Results%20Announcement) The Company's Board of Directors announces the Group's unaudited consolidated results for the six months ended June 30, 2025, along with comparative figures - This announcement presents the unaudited consolidated results of the Company and its subsidiaries and associates (the Group) for the six months ended June 30, 2025[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated income statement, statement of comprehensive income, and statement of financial position [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group's revenue significantly decreased from HKD 14,861 thousand in 2024 to HKD 8,436 thousand, while loss for the period narrowed from HKD 8,983 thousand to HKD 5,538 thousand due to reduced cost of sales and increased reversal of expected credit losses Consolidated Income Statement Key Data (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,436 | 14,861 | -43.24% | | Cost of Sales | (303) | (5,003) | -93.95% | | Gross Profit | 8,133 | 9,858 | -17.59% | | Reversal of Expected Credit Losses | 2,496 | 399 | +525.56% | | Net Other Income / (Loss) | 2,826 | (3,050) | N/A (Turned to profit) | | Administrative Expenses | (17,350) | (14,564) | +19.13% | | Loss from Operations | (3,895) | (7,357) | -47.06% | | Loss Before Tax | (5,538) | (8,983) | -38.35% | | Loss for the Period | (5,538) | (8,983) | -38.35% | | Loss Attributable to Owners of the Company | (3,065) | (5,606) | -45.33% | | Basic Loss Per Share (HK cents) | (0.77) | (1.40) | -45.00% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's loss for the period narrowed, and exchange differences on translation of foreign operations increased, leading to a significant reduction in total comprehensive loss from HKD 8,390 thousand to HKD 3,451 thousand Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (5,538) | (8,983) | -38.35% | | Exchange Differences on Translation of Foreign Operations | 2,087 | 593 | +251.94% | | Total Other Comprehensive Income for the Period | 2,087 | 593 | +251.94% | | Total Comprehensive Loss for the Period | (3,451) | (8,390) | -58.86% | | Total Comprehensive Loss Attributable to Owners of the Company | (698) | (5,804) | -88.08% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2025, the Group's total assets less current liabilities slightly decreased, with a notable increase in trade and other receivables and a decrease in loans receivable, resulting in a minor decline in net assets Consolidated Statement of Financial Position Key Data (As at June 30) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 85,705 | 86,147 | -0.51% | | Current Assets | 177,408 | 174,787 | +1.50% | | Current Liabilities | (54,382) | (49,252) | +10.42% | | Net Current Assets | 123,026 | 125,535 | -2.00% | | Total Assets Less Current Liabilities | 208,731 | 211,682 | -1.39% | | Non-current Liabilities | (36,231) | (35,731) | +1.40% | | Net Assets | 172,500 | 175,951 | -1.96% | | Equity Attributable to Owners of the Company | 193,984 | 194,682 | -0.36% | - Trade and other receivables (current portion) increased from **HKD 19,382 thousand** to **HKD 29,096 thousand**, an increase of approximately **50%**[7](index=7&type=chunk) - Loans receivable decreased from **HKD 127,561 thousand** to **HKD 119,353 thousand**, a decrease of approximately **6.4%**[7](index=7&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the Group's accounting policies, segment reporting, various income and expense items, loss per share, dividends, and key balance sheet accounts [1. Accounting Policies](index=6&type=section&id=1.%20Accounting%20Policies) This interim results announcement is extracted from the unaudited interim financial report, prepared in accordance with HKFRS 34 and the Listing Rules, with no significant impact from new standards - The condensed consolidated interim financial statements are unaudited but have been reviewed by the audit committee[10](index=10&type=chunk) - Prepared using the same accounting policies as the annual report for the year ended December 31, 2024[10](index=10&type=chunk) - No new or revised standards not yet effective have been adopted, and their application had no significant impact on the financial position and performance for the period[10](index=10&type=chunk) [2. Revenue and Segment Reporting](index=7&type=section&id=2.%20Revenue%20and%20Segment%20Reporting) The Group's total revenue for the six months ended June 30, 2025, decreased to HKD 8,735 thousand, primarily due to a significant reduction in medical segment revenue, while the money lending segment contributed most of the revenue and profit Reportable Segment Revenue and (Loss) / Profit (For the six months ended June 30) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | Revenue Change (%) | 2025 (Loss) / Profit (HKD thousands) | 2024 (Loss) / Profit (HKD thousands) | Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Investment Holding | 299 | 265 | +12.83% | (7,644) | (9,408) | -18.75% | | Medical | 522 | 6,714 | -92.23% | (8,273) | (8,035) | +2.96% | | Money Lending and Related Business | 7,914 | 8,147 | -2.86% | 10,410 | 8,546 | +21.81% | | Hotel | – | – | N/A | (31) | (86) | -63.95% | | **Total** | **8,735** | **15,126** | **-42.25%** | **(5,538)** | **(8,983)** | **-38.35%** | - Medical segment revenue significantly decreased from **HKD 6,714 thousand** to **HKD 522 thousand**, being the primary reason for the overall revenue decline[11](index=11&type=chunk) - The money lending and related business segment was the only segment to record a profit, with a year-on-year profit growth of **21.81%**[11](index=11&type=chunk) [3. Net Other Income / (Loss)](index=8&type=section&id=3.%20Net%20Other%20Income%20%2F%20%28Loss%29) For the six months ended June 30, 2025, the Group's net other income was HKD 2,826 thousand, a significant improvement from a loss of HKD 3,050 thousand in the prior year, mainly due to a positive shift in net realized and unrealized foreign exchange gains Composition of Net Other Income / (Loss) (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Net Realized and Unrealized Foreign Exchange Gains / (Losses) | 2,723 | (1,888) | Turned from loss to gain | | Net Realized and Unrealized Valuation Losses on Trading Securities | (786) | (1,400) | Loss narrowed | | Interest Income | 299 | 265 | Increased | | Management Fee Income | 598 | – | New | | Miscellaneous Losses | (8) | (27) | Loss narrowed | | **Total** | **2,826** | **(3,050)** | **Turned from loss to gain** | [4. Administrative Expenses](index=8&type=section&id=4.%20Administrative%20Expenses) Administrative expenses primarily consist of directors' emoluments and professional fees within the investment holding segment, and staff costs in the medical segment - Administrative expenses mainly arise from the investment holding segment (directors' emoluments, professional fees) and the medical segment (staff costs)[13](index=13&type=chunk) [5. Finance Costs](index=8&type=section&id=5.%20Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs, primarily interest expenses on lease payments, slightly decreased compared to the prior year Finance Costs (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Interest Expense on Lease Payments | 1,537 | 1,603 | -4.00% | [6. Income Tax Expense](index=8&type=section&id=6.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group incurred no income tax expense, consistent with the prior year - No provision for income tax expense was made for the current period or the prior period[15](index=15&type=chunk) [7. Loss for the Period](index=8&type=section&id=7.%20Loss%20for%20the%20Period) Loss for the period was primarily influenced by depreciation, amortization, and a significant decrease in staff costs from HKD 6,920 thousand to HKD 3,408 thousand Key Deductions for Loss for the Period (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 248 | 354 | -29.94% | | Depreciation of Right-of-Use Assets | 2,929 | 2,690 | +8.88% | | Amortization of Intangible Assets | 1,270 | 1,132 | +12.19% | | Staff Costs (including directors' emoluments) | 3,408 | 6,920 | -50.75% | [8. Loss Per Share for the Period](index=9&type=section&id=8.%20Loss%20Per%20Share%20for%20the%20Period) The Group's basic loss per share for the six months ended June 30, 2025, narrowed to 0.77 HK cents, with diluted loss per share being identical due to the absence of dilutive securities [a) Basic Loss Per Share](index=9&type=section&id=a)%20Basic%20Loss%20Per%20Share) The basic loss per share for the period was 0.77 HK cents, reflecting a 45% reduction in loss attributable to owners of the Company Basic Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HKD thousands) | 3,065 | 5,606 | -45.33% | | Weighted Average Number of Ordinary Shares in Issue (shares) | 398,979,524 | 398,979,524 | 0.00% | | Basic Loss Per Share (HK cents) | (0.77) | (1.40) | -45.00% | [b) Diluted Loss Per Share](index=9&type=section&id=b)%20Diluted%20Loss%20Per%20Share) Diluted loss per share is identical to basic loss per share as there were no dilutive potential ordinary shares during the period - Diluted loss per share is the same as basic loss per share, as the Group had no dilutive potential ordinary shares convertible into shares during the period[17](index=17&type=chunk) [9. Dividends](index=9&type=section&id=9.%20Dividends) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior financial year [a) Interim Dividends Attributable](index=9&type=section&id=a)%20Interim%20Dividends%20Attributable) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[18](index=18&type=chunk) [b) Dividends Attributable to the Previous Financial Year](index=9&type=section&id=b)%20Dividends%20Attributable%20to%20the%20Previous%20Financial%20Year) No dividends attributable to the previous financial year were approved or paid for the six months ended June 30, 2025 and 2024 - No dividends attributable to the previous financial year were approved and paid for the six months ended June 30, 2025 and 2024[18](index=18&type=chunk) [10. Trade and Other Receivables](index=9&type=section&id=10.%20Trade%20and%20Other%20Receivables) As at June 30, 2025, total trade and other receivables increased to HKD 32,131 thousand, driven by higher other receivables, deposits, and prepayments, while net trade receivables slightly decreased Composition of Trade and Other Receivables (As at June 30) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables (net) | 3,170 | 3,939 | -19.53% | | Interest Receivables (net) | 8,633 | 7,797 | +10.72% | | Other Receivables and Deposits | 8,128 | 2,344 | +246.76% | | Prepayments | 12,200 | 8,288 | +47.19% | | **Total** | **32,131** | **22,368** | **+43.65%** | | Non-current Portion | 3,035 | 2,986 | +1.64% | | Current Portion | 29,096 | 19,382 | +50.12% | [a) Ageing Analysis](index=10&type=section&id=(a)%20Ageing%20Analysis) The ageing analysis of trade and interest receivables shows a notable increase in balances over 12 months as at June 30, 2025 Ageing Analysis of Trade and Interest Receivables (Net, as at June 30) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Less than 1 month | 8,813 | 11,675 | | 1 to 3 months | 16 | 8 | | More than 3 months but less than 12 months | 1,666 | – | | More than 12 months | 1,308 | 53 | | **Total** | **11,803** | **11,736** | [b) Prepayments](index=10&type=section&id=(b)%20Prepayments) Prepayments, primarily for professional fees to commercial consultants, decreased from HKD 3,546 thousand to HKD 2,689 thousand - Prepayments mainly include professional fees paid in advance to commercial consultants, decreasing from **HKD 3,546 thousand** as at December 31, 2024, to **HKD 2,689 thousand**[21](index=21&type=chunk) [11. Loans Receivable](index=10&type=section&id=11.%20Loans%20Receivable) As at June 30, 2025, net loans receivable decreased to HKD 119,353 thousand, with the Group actively pursuing legal action for a significant overdue loan Composition of Loans Receivable (As at June 30) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loans to Third Parties | 187,668 | 197,305 | -4.93% | | Less: Provision for Expected Credit Losses | (68,315) | (69,744) | -2.05% | | **Net** | **119,353** | **127,561** | **-6.43%** | | Secured | 29,502 | 37,921 | -22.20% | | Unsecured | 89,851 | 89,640 | +0.24% | - The Group grants loans to enhance working capital efficiency and generate interest income[22](index=22&type=chunk) - For an overdue loan of approximately **HKD 102,000 thousand**, bankruptcy proceedings have been initiated against the first guarantor, with approximately **HKD 2,000** allocated, and litigation against the second guarantor is ongoing, with a judgment expected by January 24, 2026, or earlier[25](index=25&type=chunk)[26](index=26&type=chunk) - Loans bear interest at annual rates ranging from **12% to 18.5%** and are repayable within one year[26](index=26&type=chunk) [12. Trade and Other Payables](index=12&type=section&id=12.%20Trade%20and%20Other%20Payables) As at June 30, 2025, total trade and other payables increased to HKD 49,648 thousand, primarily due to an increase in amounts due to a related party, partially offset by a decrease in other payables and accrued expenses Composition of Trade and Other Payables (As at June 30) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 5,389 | 3,685 | +46.22% | | Amounts Due to a Related Party | 13,679 | – | N/A (New) | | Other Payables and Accrued Expenses | 30,580 | 40,206 | -23.94% | | **Total** | **49,648** | **43,891** | **+13.12%** | [a) Ageing Analysis](index=12&type=section&id=(a)%20Ageing%20Analysis) The ageing analysis of trade payables shows a significant increase in balances due over 12 months as at June 30, 2025 Ageing Analysis of Trade Payables (As at June 30) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Due within 1 month or on demand | – | 189 | | Due 1 to 3 months | 18 | 18 | | Due over 3 months but less than 12 months | – | 1,761 | | Due over 12 months | 5,371 | 1,717 | | **Total** | **5,389** | **3,685** | - Trade payables due over 12 months significantly increased from **HKD 1,717 thousand** to **HKD 5,371 thousand**[28](index=28&type=chunk) [Business Review and Segment Performance](index=13&type=section&id=Business%20Review%20and%20Segment%20Performance) This section provides an overview of the Group's overall performance and detailed analysis of its medical, money lending, and investment holding segments [Overall Performance Overview](index=13&type=section&id=Overall%20Performance%20Overview) The Group's total revenue for the period was approximately HKD 8,400 thousand, a 43.6% year-on-year decrease, primarily due to a significant decline in medical business revenue, while net loss for the period narrowed to approximately HKD 5,500 thousand Overall Performance Overview (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 8,400 | 14,900 | -43.62% | | Net Loss for the Period | (5,500) | (9,000) | -38.89% | | Net Loss Attributable to Owners of the Company | (3,100) | (5,600) | -44.64% | - The decrease in total revenue was mainly attributable to a reduction in medical business revenue from approximately **HKD 6,700 thousand** to approximately **HKD 500 thousand**[29](index=29&type=chunk) - The reduction in loss was primarily due to a decrease in net valuation losses on trading securities of approximately **HKD 600 thousand**, a reversal of expected credit losses of approximately **HKD 2,500 thousand**, and a shift from foreign exchange losses to gains of approximately **HKD 2,700 thousand**[29](index=29&type=chunk) [Medical Segment](index=13&type=section&id=Medical%20Segment) Medical segment revenue significantly dropped to approximately HKD 500 thousand due to the Shanghai hospital's temporary suspension and renovation, yet net loss narrowed to approximately HKD 4,200 thousand, with new skincare products contributing revenue - Shanghai Hospital (primarily engaged in plastic surgery) recorded zero revenue for the period and a net loss of approximately **HKD 4,200 thousand**, an improvement compared to prior year's revenue of HKD 5,900 thousand and net loss of HKD 6,300 thousand[30](index=30&type=chunk) - The decrease in Shanghai Hospital's revenue was mainly due to the temporary suspension of business operations and renovation during the period[30](index=30&type=chunk) - Pu Ai Pu recorded no royalty income for the period, a decrease of **HKD 800 thousand** compared to the prior year[31](index=31&type=chunk) - The new skincare product business recorded revenue of approximately **HKD 500 thousand** for the period[32](index=32&type=chunk) [Money Lending and Related Business Segment](index=14&type=section&id=Money%20Lending%20and%20Related%20Business%20Segment) The money lending segment recognized interest income from third-party loans of approximately HKD 7,900 thousand, and its profit before tax increased to approximately HKD 10,400 thousand due to a reversal of expected credit losses Money Lending and Related Business Segment Key Data (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Interest Income from Third-Party Loans | 7,900 | 8,100 | -2.47% | | Reversal of Expected Credit Losses | 2,500 | N/A | N/A (New) | | Profit Before Tax | 10,400 | 8,500 | +22.35% | [Investment Holding Segment](index=14&type=section&id=Investment%20Holding%20Segment) The investment holding segment's net realized and unrealized valuation losses on trading securities narrowed to approximately HKD 800 thousand, leading to a reduced loss before tax of approximately HKD 7,600 thousand Investment Holding Segment Key Data (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Realized and Unrealized Valuation Losses on Trading Securities | (800) | (1,400) | -42.86% | | Loss Before Tax | (7,600) | (9,400) | -19.15% | [Outlook](index=14&type=section&id=Outlook) This section outlines the Group's future strategies for its medical, money lending, and investment holding businesses, alongside plans for new business development [Medical Business](index=14&type=section&id=Medical%20Business) The Group plans to expand its plastic surgery and medical aesthetics services in Asia, offer management services to other hospitals, and vigorously develop its skincare product business with new product launches and multi-channel promotion - Will continue to develop and expand plastic surgery and medical aesthetics services in China and other Asian markets[35](index=35&type=chunk) - Plans to provide management and marketing services to other plastic surgery hospitals in China[35](index=35&type=chunk) - Has launched DA Mask (medical-grade mask for post-aesthetic procedures) and the skincare brand PerOyan (skincare products for full-cycle post-aesthetic care)[35](index=35&type=chunk)[36](index=36&type=chunk) - Will leverage Shanghai Hospital's customer channels to promote DA Mask and PerOyan, and promote the PerOyan brand through online platforms like Xiaohongshu and Douyin, as well as offline channels[36](index=36&type=chunk)[37](index=37&type=chunk) - The PerOyan brand received a Bazaar Beauty Annual Award in 2024[37](index=37&type=chunk) [Money Lending and Related Business](index=15&type=section&id=Money%20Lending%20and%20Related%20Business) The Group will continue its money lending and related activities, adopting more cautious credit assessment procedures due to adverse impacts like US-China trade friction, balancing expansion with risk control - Will continue money lending and related businesses, including referrals, fund matching, arrangement, and participation[38](index=38&type=chunk) - Will adopt more cautious credit assessment and procedures due to adverse impacts such as US-China trade friction[38](index=38&type=chunk) [Investment Holding](index=15&type=section&id=Investment%20Holding) The Group will continue to hold trading securities, monitor and adjust its investment portfolio, and explore short-term investment plans to improve returns on cash reserves - Will continue to hold trading securities, monitoring and adjusting the investment portfolio to adapt to the economic environment[39](index=39&type=chunk) - Will explore different short-term investment plans to improve investment returns on cash reserves[39](index=39&type=chunk) [New Business Segment](index=16&type=section&id=New%20Business%20Segment) Management is actively seeking other business opportunities to diversify and increase revenue streams beyond existing business developments - Management is actively seeking other business opportunities to achieve diversification and increase revenue streams[40](index=40&type=chunk) [Other Information and Corporate Governance](index=16&type=section&id=Other%20Information%20and%20Corporate%20Governance) This section covers the Audit Committee's review, dividend policy, corporate governance code compliance, directors' securities transactions, and listed securities activities [Audit Committee](index=16&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim results and financial information for the period without objection - The Audit Committee comprises three independent non-executive directors[41](index=41&type=chunk) - The interim results and financial information have been reviewed, with no objections regarding their content and accounting treatment[41](index=41&type=chunk) [Dividend Policy](index=16&type=section&id=Dividend%20Policy) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[42](index=42&type=chunk) [Corporate Governance Code](index=16&type=section&id=Corporate%20Governance%20Code) The Company's Chairman and CEO roles are held by the same individual, deviating from the Listing Rules, though the Board believes this does not impair power balance and is seeking a suitable candidate - The roles of Chairman and Chief Executive Officer are held by the same individual (Ms. Dong Wei), deviating from paragraph C.2.1 of the Corporate Governance Code[43](index=43&type=chunk) - The Board believes the current structure allows for effective planning and execution of corporate strategies but is committed to identifying a suitable executive director to comply with the code as soon as practicable[43](index=43&type=chunk) - Except as disclosed, the Company has complied with the Corporate Governance Code throughout the period[43](index=43&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=16&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code for securities transactions by directors, and all directors have confirmed compliance throughout the period - The Company has adopted the Model Code as the code of conduct for directors' securities transactions[45](index=45&type=chunk) - All directors have confirmed compliance with the Model Code throughout the period[45](index=45&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=17&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the period, and no treasury shares were held as at June 30, 2025 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[46](index=46&type=chunk) - As at June 30, 2025, the Company held no treasury shares[46](index=46&type=chunk)

[Company Information](index=3&type=section&id=Company%20Information) [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The Board comprises three executive and three independent non-executive directors, with audit, remuneration, and nomination committees ensuring effective corporate governance - The Board of Directors consists of three executive directors (Mr. Li Chun Hang, Mr. Li Shing Kuen, Ms. Zou Yi Wu) and three independent non-executive directors (Mr. Li Ka Chun, Mr. Fu Wing Kwok, Mr. Ghanshyam Adhikari)[4](index=4&type=chunk) - The company has an Audit Committee (Chairman: Mr. Fu Wing Kwok), a Remuneration Committee (Chairman: Mr. Li Ka Chun), and a Nomination Committee (Chairman: Mr. Fu Wing Kwok)[4](index=4&type=chunk) [Company Contact Information](index=3&type=section&id=Company%20Contact%20Information) The company is registered in the Cayman Islands, with its principal place of business in Kowloon, Hong Kong, maintaining key banking relationships with HSBC and DBS Bank - Registered office is in the Cayman Islands, with the principal place of business in Hong Kong at Unit 1603, 16/F, Enterprise Square One, 9 Wang Hoi Road, Kowloon Bay, Kowloon[4](index=4&type=chunk) - Key banking relationships include The Hongkong and Shanghai Banking Corporation Limited and DBS Bank (Hong Kong) Limited[5](index=5&type=chunk) [Auditor and Share Capital Information](index=3&type=section&id=Auditor%20and%20Share%20Capital%20Information) The company appointed Highlink CPA Limited as auditor and is listed on the Main Board of the Hong Kong Stock Exchange with stock code 1850 - The auditor is Highlink CPA Limited, Certified Public Accountants[5](index=5&type=chunk) - The company's stock code is **1850**, and it is listed on the Main Board of the Hong Kong Stock Exchange[5](index=5&type=chunk) [Chairman's Statement](index=4&type=section&id=Chairman's%20Statement) [Business Overview and Market Outlook](index=4&type=section&id=Business%20Overview%20and%20Market%20Outlook) The Group, a Hong Kong registered fire service installation contractor with over **30 years** of experience, provides fire safety system services and trades fire accessories, anticipating economic recovery in **2025** to boost performance - The Group is a Hong Kong registered fire service installation contractor, engaged in fire safety system engineering for over **30 years**[6](index=6&type=chunk) - Service scope includes design, supply and installation of fire safety systems, maintenance and repair of fire safety systems, and trading of fire accessories[6](index=6&type=chunk) - The **2025** economic recovery in Hong Kong, Macau, and China is expected to enhance business performance, with aspirations to undertake more projects in Hong Kong to maintain stable revenue[7](index=7&type=chunk) [Financial Performance Summary](index=4&type=section&id=Financial%20Performance%20Summary) For FY2025, Group revenue decreased by **5.1%** to **HK$374.3 million**, with profit attributable to owners at **HK$0.6 million**, primarily from reduced installation services 2025 Fiscal Year Key Financial Data | Metric | 2025 (Million HKD) | 2024 (Million HKD) | Change (Million HKD) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 374.3 | 394.5 | -20.2 | -5.1% | | Profit Attributable to Owners | 0.6 | 2.2 | -1.6 | -72.7% | - The decrease in revenue was primarily attributable to a reduction in installation services[7](index=7&type=chunk) [Future Strategies and Outlook](index=4&type=section&id=Future%20Strategies%20and%20Outlook) The Group will expand its business, consolidate its core Hong Kong market position, including public sector and advanced fire safety systems, diversify into non-fire engineering, enhance maintenance services, streamline installation, and seek overseas expansion and investor base strengthening - Future strategies include: continued active participation in public sector and advanced fire safety system services for private buildings; exploring and developing Hong Kong engineering business (excluding fire service installations); expanding maintenance service business; streamlining fire service installation procedures; and maintaining and enhancing high standards in project planning, management, and execution[8](index=8&type=chunk)[9](index=9&type=chunk) - Seeking potential strategic and financial partners to further expand and develop business in other overseas markets[8](index=8&type=chunk) - Leveraging enhanced brand recognition from the **2019** listing to explore new business opportunities both within and outside Hong Kong, and strengthening the investor and shareholder base[10](index=10&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=6&type=section&id=Business%20Review%20and%20Outlook) The Group, a Hong Kong registered fire service installation contractor, provides fire safety system services, anticipating **2025** economic recovery to improve business, and will seek new projects and strategic partners for overseas expansion - Core business involves installation, maintenance, repair, or inspection of fire safety systems, with services including design, supply and installation (installation services), maintenance and repair (maintenance services), and trading of fire accessories (others)[12](index=12&type=chunk) - The economic environment in Hong Kong, Macau, and China is expected to gradually recover in **2025**, with commercial activities and economic conditions improving, which is anticipated to enhance business performance[12](index=12&type=chunk) - The Group will continue to seek strategic and financial partners to expand business and develop into other overseas markets[13](index=13&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) For FY2025, Group revenue decreased by **5.1%** to **HK$374.3 million**, mainly due to lower installation service revenue, with gross profit and margin declining, but other income increasing, resulting in **HK$0.6 million** profit attributable to owners [Revenue Analysis](index=6&type=section&id=Revenue%20Analysis) Total revenue for the year was approximately **HK$374.3 million**, a **5.1% decrease** year-on-year, primarily due to a **HK$16.8 million** reduction in installation service revenue, with maintenance services also decreasing by **30.5%** Revenue Analysis (Thousand HKD) | Service Type | 2025 (Thousand HKD) | Share of Total Revenue % (2025) | 2024 (Thousand HKD) | Share of Total Revenue % (2024) | | :--- | :--- | :--- | :--- | :--- | | Installation services | 367,007 | 98.04 | 383,784 | 97.28 | | Maintenance services | 7,308 | 1.95 | 10,499 | 2.66 | | Others | 32 | 0.01 | 254 | 0.06 | | **Total** | **374,347** | **100.00** | **394,537** | **100.00** | - Installation service revenue decreased approximately **4.4%** to **HK$367.0 million**, mainly due to the progress of ongoing installation projects during the year[16](index=16&type=chunk) - Maintenance service revenue decreased approximately **30.5%** to **HK$7.3 million**, primarily due to reduced revenue from maintenance and repair of safety systems for government properties[17](index=17&type=chunk) [Cost of Sales and Gross Profit](index=7&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales decreased by **4.7%** to **HK$348.4 million**, aligning with revenue decline, resulting in a **10.7%** decrease in gross profit to **HK$25.9 million** and a gross margin of **6.9%** Cost of Sales and Gross Profit (Thousand HKD) | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 348,435 | 365,537 | -17,102 | -4.7% | | Gross Profit | 25,912 | 29,000 | -3,088 | -10.7% | | Gross Margin | 6.9% | 7.3% | -0.4% | -5.5% | - Cost of sales decreased primarily due to a reduction in subcontracting costs, direct labor, and material costs[19](index=19&type=chunk) [Other Income and Expenses](index=8&type=section&id=Other%20Income%20and%20Expenses) Other income significantly increased to **HK$2.4 million**, mainly from higher handling fees, with an expected credit loss reversal of approximately **HK$668 million**; administrative expenses slightly rose due to staff costs, and finance costs marginally increased from bank borrowings Other Income and Expenses (Thousand HKD) | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | | :--- | :--- | :--- | | Other Income | 2,400 | 1,000 | 1,400 | | Reversal of impairment losses on trade receivables, etc. | 668 | (2,007) | 2,675 | | Administrative Expenses | (22,600) | (22,200) | 400 | | Other Gains and Losses | 0 | 2,900 | -2,900 | | Finance Costs | (4,100) | (4,000) | 100 | - Other income increased approximately **HK$1.8 million**, primarily from handling fees[21](index=21&type=chunk) - Reversal of impairment losses on trade receivables, contract assets, deposits, prepayments, and other receivables under expected credit losses was approximately **HK$668 million**[22](index=22&type=chunk) - Administrative expenses increased by **1