Financial Performance - Total revenue for the six months ended June 30, 2025, was approximately RMB 23,115,000, a decrease of 23.8% compared to RMB 30,323,000 for the same period in 2024[7] - The net loss for the period was approximately RMB 1,756,000, a reduction of 70.7% from RMB 5,984,000 in the previous year, primarily due to increased revenue from blockchain-related services[8] - The group reported a loss of approximately RMB 1,756,000 for the period, a decrease from RMB 5,984,000 for the six months ending June 30, 2024, primarily due to increased revenue from blockchain technology applications and reduced administrative expenses[24] - The company reported a basic and diluted loss per share of RMB 0.89, an improvement from RMB 1.38 in the prior year[39] - The group’s income tax expense for the period was approximately RMB 990,000, compared to RMB 1,440,000 for the six months ending June 30, 2024[23] Revenue Breakdown - Revenue from blockchain technology development and technical support amounted to RMB 13,915,000, with no revenue from self-developed games during the period[10] - Revenue from the issuance of third-party games was approximately RMB 9,200,000, down from RMB 16,172,000 in the same period last year[16] - Revenue from third-party game publishing in China was RMB 9,200,000, down from RMB 16,172,000 in the previous year, representing a decline of 43.5%[56][57] - The mobile gaming segment generated revenue of RMB 9,200,000, while the blockchain technology segment contributed RMB 13,915,000, indicating a shift in revenue sources[59] Expenses and Investments - Administrative expenses were approximately RMB 9,203,000, significantly reduced from RMB 21,050,000 in the previous year, mainly due to decreased amortization of intangible assets[18] - Research and development expenses for the period were approximately RMB 12,038,000, compared to RMB 267,000 in the same period last year, reflecting increased investment in game service development[19] - The company made a significant investment of approximately RMB 20,860,000 in intangible assets related to the development of a social finance mobile application[45] - The net cash used in operating activities was RMB 19,535,000, compared to RMB 10,455,000 in the previous year, highlighting increased operational expenditures[44] Financial Position - Total assets increased to RMB 110,454,000 as of June 30, 2025, compared to RMB 90,796,000 at the end of 2024, showing growth in the company's financial position[41] - The group’s net current assets were approximately RMB 72,824,000 as of June 30, 2025, compared to RMB 69,482,000 on December 31, 2024[27] - The group has no bank or other borrowings as of June 30, 2025, consistent with December 31, 2024[28] - As of June 30, 2025, the group’s debt-to-equity ratio was 6.1%, down from 10.7% on December 31, 2024[26] Strategic Plans - The company plans to continue leveraging blockchain technology to develop high-growth potential businesses and enhance game development and publishing capabilities[10] - The group is optimistic about its blockchain technology applications and plans to continue investing in the development of live streaming platforms to enhance its business[38] - The group will regularly review its business strategies to capture opportunities in both domestic and overseas markets[38] - The company aims to strengthen relationships with existing clients and develop new client relationships to drive business growth[10] Shareholder and Governance Information - The company did not declare any dividends for the interim periods, reflecting a conservative approach to cash management amid ongoing losses[64] - The board of directors did not recommend any interim dividend for the six months ended June 30, 2025[76] - The company has adopted the corporate governance code principles as per the Listing Rules Appendix C1 and complied with all applicable code provisions for the six months ending June 30, 2025[104] - An audit committee has been established in accordance with Listing Rule 3.21, responsible for ensuring effective internal control and risk management frameworks[105] Employee and Management Compensation - The total remuneration for directors and key management personnel increased to RMB 1,528,000 for the six months ended June 30, 2025, compared to RMB 1,142,000 for the same period in 2024, reflecting a growth of approximately 33.8%[75] - For the six months ending June 30, 2025, the group recognized share-based payment expenses of approximately RMB 1,663,000, compared to RMB 7,337,000 for the same period ending June 30, 2024[102] Share Plans - The company plans to adopt a new share plan on April 9, 2025, following the termination of the old plans[89] - The new share plan was adopted on April 9, 2025, allowing for the issuance of up to 41,483,781 shares, representing approximately 10% of the total issued shares as of the adoption date[96] - The reward shares granted under the new share plan will vest in three tranches: 20% on November 28, 2025, 30% on November 28, 2026, and 50% on November 28, 2027[100] - The new share plan is designed to attract suitable personnel for the company's further development and to retain qualified participants[96]

[Summary](index=2&type=section&id=%E6%91%98%E8%A6%81) This summary outlines Autostreets Development Limited's unaudited interim results for the six months ended June 30, 2025, including key financial performance and operating data, compared to the same period in 2024 [Financial Performance](index=2&type=section&id=%E8%B4%A2%E5%8A%A1%E8%A1%A8%E7%8E%B0) During the reporting period, the company's revenue and gross profit significantly decreased year-on-year, but profit for the period turned from loss to profit, mainly due to the absence of a substantial loss from fair value changes in financial liabilities in the prior year Financial Performance Overview | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 141,846 | 191,309 | -25.9% | | Gross Profit | 89,209 | 123,701 | -27.9% | | Gross Profit Margin (%) | 62.9 | 64.7 | -1.8 percentage points | | Profit/(Loss) for the Period | 12,791 | (142,231) | 109.0% | [Operating Performance](index=2&type=section&id=%E7%BB%8F%E8%90%A5%E8%A1%A8%E7%8E%B0) The report does not provide specific operating performance data tables but defines the number of used cars traded and serviced, implying operating activities are related to used car transaction volume - The number of used cars traded and serviced includes: (i) used cars traded in the used car auction business; (ii) used cars serviced by used car value-added services; and (iii) the total number of consumer trade-in vehicles traded under used car consignment arrangements[5](index=5&type=chunk) [Interim Financial Information](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%96%99) This section presents the unaudited interim condensed consolidated statement of profit or loss, statement of comprehensive income, and statement of financial position for the six months ended June 30, 2025, with comparative data for 2024, comprehensively illustrating the Group's financial position and operating results [Interim Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company achieved revenue of RMB 141,846 thousands and profit for the period of RMB 12,791 thousands, a significant improvement from the loss of RMB 142,231 thousands in the prior year, with basic and diluted earnings per share of RMB 0.01 Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 141,846 | 191,309 | | Operating Costs | (52,637) | (67,608) | | Gross Profit | 89,209 | 123,701 | | Other Income and Gains, Net | 3,775 | 4,457 | | Selling and Distribution Expenses | (30,460) | (39,620) | | Administrative Expenses | (42,089) | (77,188) | | Other Expenses | (952) | (1,552) | | Finance Costs | (3,586) | (3,276) | | Share of Profit/(Loss) of Associates | 119 | – | | Fair Value Change of Financial Assets at FVTPL | – | 44 | | Fair Value Change of Financial Liabilities at FVTPL | – | (142,293) | | Profit/(Loss) Before Tax | 16,016 | (135,727) | | Income Tax Expense | (3,225) | (6,504) | | Profit/(Loss) for the Period | 12,791 | (142,231) | | Profit/(Loss) Attributable to Owners of the Parent | 5,462 | (147,607) | | Profit Attributable to Non-controlling Interests | 7,329 | 5,376 | | Basic and Diluted Earnings/(Loss) Per Share (RMB yuan) | 0.01 | (0.19) | [Interim Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's total comprehensive income for the period was RMB 8,410 thousands, a significant improvement from the loss of RMB 143,218 thousands in the prior year, mainly due to reduced exchange difference losses Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 12,791 | (142,231) | | Exchange Differences on Translation of Company's Financial Statements | (4,381) | (987) | | Other Comprehensive Loss for the Period, Net of Tax | (4,381) | (987) | | Total Comprehensive Income/(Loss) for the Period | 8,410 | (143,218) | | Attributable to Owners of the Parent | 1,081 | (148,594) | | Attributable to Non-controlling Interests | 7,329 | 5,376 | [Interim Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the company's total net assets increased to RMB 945,938 thousands, net current assets maintained stable growth, cash and cash equivalents slightly increased, and total non-current liabilities decreased Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 7,147 | 9,453 | | Right-of-use Assets | 58,512 | 65,393 | | Other Intangible Assets | 335 | 463 | | Investments in Associates | 2,057 | 1,938 | | Deferred Tax Assets | 5,727 | 8,372 | | Other Non-current Assets | 7,447 | 6,455 | | **Total Non-current Assets** | **81,225** | **92,074** | | **Current Assets** | | | | Trade Receivables | 15,032 | 14,670 | | Prepayments, Transaction Deposits and Other Receivables | 94,417 | 93,593 | | Financial Assets at Fair Value Through Profit or Loss | 4,000 | 3,300 | | Cash and Cash Equivalents | 1,046,843 | 1,046,599 | | **Total Current Assets** | **1,160,292** | **1,158,162** | | **Current Liabilities** | | | | Trade Payables | 10,320 | 11,103 | | Other Payables and Accruals | 92,129 | 97,279 | | Interest-bearing Bank Borrowings | 126,230 | 129,480 | | Lease Liabilities | 19,869 | 19,694 | | Tax Payables | 4,132 | 4,729 | | **Total Current Liabilities** | **252,680** | **262,285** | | **Net Current Assets** | **907,612** | **895,877** | | **Total Assets Less Current Liabilities** | **988,837** | **987,951** | | **Non-current Liabilities** | | | | Lease Liabilities | 42,899 | 50,423 | | **Total Non-current Liabilities** | **42,899** | **50,423** | | **Net Assets** | **945,938** | **937,528** | | **Equity** | | | | Share Capital | 56 | 56 | | Other Reserves | 927,299 | 926,218 | | Equity Attributable to Owners of the Parent | 927,355 | 926,274 | | Non-controlling Interests | 18,583 | 11,254 | | **Total Equity** | **945,938** | **937,528** | [Notes to the Interim Condensed Consolidated Financial Information](index=7&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%96%99%E9%99%84%E6%B3%A8) This section provides detailed notes to the interim condensed consolidated financial information, covering key financial details such as company information, accounting policies, operating segments, revenue breakdown, profit or loss before tax, income tax, dividends, earnings per share, receivables and payables, share capital, related party transactions, and fair value of financial instruments [Company and Group Information](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E5%8F%8A%E9%9B%86%E5%9B%A2%E8%B5%84%E6%96%99) Autostreets Development Limited was incorporated in the Cayman Islands in 2014, primarily engaged in used car consignment and services, and listed on the Main Board of the Hong Kong Stock Exchange on May 31, 2024 - The company was incorporated as an exempted company in the Cayman Islands on September 3, 2014[12](index=12&type=chunk) - The company and its subsidiaries are primarily engaged in used car consignment arrangements and providing used car services[12](index=12&type=chunk) - The company's shares have been listed on the Main Board of the Hong Kong Stock Exchange since May 31, 2024[12](index=12&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=7&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86%E5%8F%8A%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%98%E5%8A%A8) The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and is consistent with the accounting policies adopted for the annual consolidated financial statements for the year ended December 31, 2024, with only the initial adoption of certain revised IFRS accounting standards, which are not expected to have a significant impact - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[13](index=13&type=chunk) - The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024, except for the initial adoption of the following revised IFRS accounting standards for the current period[14](index=14&type=chunk) - The aforementioned amendments are not expected to have any significant impact on the Group's interim condensed consolidated financial information[15](index=15&type=chunk) [Operating Segment Information](index=8&type=section&id=%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) As all the Group's revenue and non-current assets are derived from China, and its primary business is providing transportation and related services, operating and geographical segment information is not presented. No single customer accounted for more than 10% of total revenue during the reporting period - The Group's revenue and reported results during the reporting period, as well as the Group's total assets at each period end, are derived from a single operating segment (i.e., providing transportation and related services), thus operating segment information is not presented[16](index=16&type=chunk) - All the Group's revenue during the period is derived from China, and all non-current assets are located in China, thus no geographical segment information is presented[17](index=17&type=chunk) - During the period, no single customer accounted for more than **10% of the Group's total revenue**[18](index=18&type=chunk) [Revenue](index=8&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the company's total revenue was RMB 141,846 thousands, primarily from used car auction commissions and service fees, used car value-added service revenue, and used car consignment arrangement revenue, with used car auction commissions and service fees accounting for the largest proportion Revenue by Source | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Used Car Auction Commissions and Service Fees | 94,051 | 133,309 | | Used Car Value-Added Service Revenue | 28,456 | 33,179 | | Used Car Consignment Arrangement Revenue | 13,534 | 18,326 | | Exhibition Business Revenue | – | 721 | | Other Service Revenue | 5,805 | 5,774 | | **Total** | **141,846** | **191,309** | Revenue by Recognition Timing | Revenue Recognition Timing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | At a point in time (completion of sale or service) | 121,924 | 166,506 | | Over time (as services are provided) | 19,922 | 24,803 | | **Total** | **141,846** | **191,309** | [Profit/(Loss) Before Tax](index=9&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9%E2%88%95%EF%BC%88%E4%BA%8F%E6%8D%9F%EF%BC%89) For the six months ended June 30, 2025, the company's profit before tax was RMB 16,016 thousands, a significant improvement from the loss of RMB 135,727 thousands in the prior year, mainly due to the absence of a substantial loss from fair value changes in financial liabilities in the prior year and reduced listing expenses Components of Profit/(Loss) Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Used Car Auction Commissions and Service Fees | 43,197 | 56,254 | | Cost of Exhibition Business | – | 182 | | Cost of Used Car Consignment Arrangements | 2,410 | 3,335 | | Cost of Used Car Value-Added Services | 4,935 | 5,876 | | Cost of Other Services | 2,095 | 1,961 | | Research and Development Costs | 6,334 | 5,309 | | Depreciation of Property, Plant and Equipment | 2,797 | 2,888 | | Depreciation of Right-of-use Assets | 10,616 | 11,955 | | Amortisation of Other Intangible Assets | 129 | 136 | | Net Loss/(Gain) on Disposal of Property, Plant and Equipment | 18 | (44) | | Lease Payments Not Included in Lease Liabilities Measurement | 3,249 | 2,554 | | Fair Value Change of Non-convertible Redeemable Preference Shares | – | 142,293 | | Fair Value Change of Financial Assets at Fair Value Through Profit or Loss | – | (44) | | Auditor's Remuneration | 1,100 | 1,000 | | Listing Expenses | – | 26,662 | | Employee Benefit Expenses (including Directors' Emoluments) | 38,207 | 56,584 | | Net Foreign Exchange Differences | (500) | (864) | | Impairment of Trade Receivables | – | 336 | [Income Tax](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E) For the six months ended June 30, 2025, income tax expense was RMB 3,225 thousands, a decrease from the prior year. The company is exempt from income tax in the Cayman Islands, British Virgin Islands, and Hong Kong, while Chinese subsidiaries are subject to a 25% tax rate, with some high-tech, western development zone, and small and micro enterprises enjoying preferential rates Income Tax Expense Breakdown | Income Tax Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current China Mainland: Expense for the Year | 556 | 5,012 | | Under-provision in Prior Years | 24 | 181 | | Deferred Tax | 2,645 | 1,311 | | **Total** | **3,225** | **6,504** | - The Group is not subject to any Cayman Islands income tax[22](index=22&type=chunk) - Subsidiaries incorporated in the British Virgin Islands are not subject to income tax[23](index=23&type=chunk) - No assessable profits arose in Hong Kong, thus no provision for Hong Kong profits tax has been made[24](index=24&type=chunk) - Chinese subsidiaries' assessable income is subject to China income tax at a rate of **25%**, but some enterprises enjoy preferential tax rates (e.g., **15% for high-tech enterprises**, exemption or half reduction for new enterprises in Xinjiang difficult areas, **15% for encouraged industries in western development zones**, and **20% for small and micro enterprises**)[24](index=24&type=chunk)[25](index=25&type=chunk) [Dividends](index=11&type=section&id=%E8%82%A1%E6%81%AF) The company's board of directors has resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors of the Company has resolved not to declare an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[26](index=26&type=chunk) [Earnings/(Loss) Per Share Attributable to Ordinary Equity Holders of the Parent](index=11&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%9D%83%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E5%BA%94%E5%8D%A0%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%E2%88%95%EF%BC%88%E4%BA%8F%E6%8D%9F%EF%BC%89) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to ordinary equity holders of the parent was RMB 0.01, a significant improvement from the loss per share of RMB 0.19 in the prior year, mainly due to the profit for the period turning positive Earnings/(Loss) Per Share | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Equity Holders of the Parent (RMB thousands) | 5,462 | (147,607) | | Weighted Average Number of Ordinary Shares in Issue for Basic and Diluted EPS Calculation (thousands) | 832,662 | 773,706 | | Basic and Diluted (RMB yuan) | 0.01 | (0.19) | - For the periods ended June 30, 2025 and 2024, the Group had no potential dilutive ordinary shares[28](index=28&type=chunk) [Trade Receivables](index=12&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade receivables amounted to RMB 15,032 thousands, a slight increase from December 31, 2024, with the majority concentrated within six months, indicating a healthy aging structure Trade Receivables Summary | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 15,347 | 14,985 | | Impairment | (315) | (315) | | **Total** | **15,032** | **14,670** | Trade Receivables Aging Analysis | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within Six Months | 15,032 | 14,376 | | Six Months to One Year | – | 294 | | **Total** | **15,032** | **14,670** | - Trade receivables are non-interest bearing[29](index=29&type=chunk) [Trade Payables](index=12&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade payables amounted to RMB 10,320 thousands, a decrease from December 31, 2024, with all balances concentrated within six months and generally settled within 15 to 120 days Trade Payables Aging Analysis | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within Six Months | 10,320 | 10,906 | | Six Months to One Year | – | 197 | | **Total** | **10,320** | **11,103** | - Trade payables are non-interest bearing and generally settled within **15 to 120 days**[30](index=30&type=chunk) [Share Capital](index=13&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's issued and fully paid share capital was RMB 56 thousands, with 832,662,428 shares issued, consistent with December 31, 2024 Share Capital | Date | Number of Shares Issued | Share Capital (RMB thousands) | | :--- | :--- | :--- | | As of December 31, 2024 (audited) and June 30, 2025 (unaudited) Ordinary Shares of US$0.00001 each | 832,662,428 | 56 | [Related Party Transactions](index=13&type=section&id=%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93) During the reporting period, the company engaged in related party transactions, including used car value-added service costs and rental expenses, with entities controlled by shareholders having significant influence over the Group, with corresponding outstanding balances Related Party Transactions | Transaction Type | Related Party Name | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Used Car Value-Added Service Costs | Huzhou Baorui Automobile Sales and Service Co., Ltd | 143 | 92 | | Rental Expenses | Shanghai Kailong Automobile Group Co., Ltd | 1,657 | 1,714 | | Rental Expenses | Shanghai Longyun Property Management Co., Ltd | 259 | 274 | Outstanding Balances with Related Parties | Outstanding Balance Type | Related Party Name | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Non-trade: Prepayments, Transaction Deposits and Other Receivables | Shanghai Kailong Automobile Group Co., Ltd | 2,610 | 2,610 | | Non-trade: Prepayments, Transaction Deposits and Other Receivables | Shanghai Longyun Property Management Co., Ltd | 412 | 415 | | Trade: Trade Payables and Bills Payable | Huzhou Baorui Automobile Sales and Service Co., Ltd | 88 | 122 | | Trade: Trade Payables and Bills Payable | Ma'anshan Ruibao Automobile Sales and Service Co., Ltd | 24 | 14 | | Other Payables and Accruals | Huzhou Baorui Automobile Sales and Service Co., Ltd | – | 622 | Key Management Personnel Remuneration | Key Management Personnel Remuneration | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, Allowances and Benefits in Kind | 3,611 | 4,546 | | Contributions to Pension Schemes | 171 | 156 | | **Total** | **3,782** | **4,702** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=15&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E5%8F%8A%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E5%B1%82%E7%BA%A7) Management assessed that the fair value of financial instruments such as cash and cash equivalents and trade receivables approximates their carrying amounts. The fair value of the company's unlisted investments is estimated using discounted cash flow valuation models. As of June 30, 2025, financial assets measured at fair value through profit or loss amounted to RMB 4,000 thousands, classified as Level 2 fair value measurement - Management has assessed that the fair value of financial instruments such as cash and cash equivalents and trade receivables approximates their carrying amounts, primarily because these instruments are short-term in nature[38](index=38&type=chunk) - The Group's unlisted investments refer to financial products issued by banks, whose fair value is estimated using discounted cash flow valuation models[39](index=39&type=chunk) Financial Assets at Fair Value Through Profit or Loss | Fair Value Measurement Level | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Level 1 (Quoted prices in active markets) | – | – | | Level 2 (Significant observable inputs) | 4,000 | 3,300 | | Level 3 (Significant unobservable inputs) | – | – | | **Total** | **4,000** | **3,300** | - As of June 30, 2025, and December 31, 2024, the Group did not have any financial liabilities measured at fair value[43](index=43&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section details the company's industry environment, business operations, financial performance, and future outlook during the reporting period. Despite industry challenges, the company maintained core business competitiveness by expanding key accounts, optimizing network layout, and enhancing service quality. Financially, revenue and gross profit decreased, but profit for the period was achieved through cost control and the elimination of fair value change impacts [Industry and Business Review](index=17&type=section&id=%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5) China's automotive market saw robust production and sales, with new energy vehicles as the main growth driver, but used car transaction volume growth slowed, and the industry faced challenges of insufficient demand and price wars. As a used car trading intermediary, the company continuously expanded key accounts, optimized its network layout, and enhanced service quality through online and offline auction models and value-added services to adapt to market changes [Industry Review](index=17&type=section&id=%E8%A1%8C%E4%B8%9A%E5%9B%9E%E9%A1%B5) In H1 2025, China's automotive production and sales both exceeded 15 million units for the first time, with new energy passenger vehicle sales growing by 35.5% while fuel vehicles declined by 1.8%. National used car cumulative transaction volume reached 9.57 million units, a 1.99% year-on-year increase, with slowed growth primarily due to insufficient demand and price wars leading to continuous declines in new and used car transaction prices - In H1 2025, China's automotive production and sales both exceeded **15 million units** for the first time, with domestic sales reaching **12.57 million units**, a **11.7% year-on-year increase**[45](index=45&type=chunk) - New energy passenger vehicles grew by **35.5% year-on-year**, while fuel vehicles declined by **1.8% year-on-year**[45](index=45&type=chunk) - From January to June 2025, national used car cumulative transaction volume reached **9.57 million units**, a **1.99% year-on-year increase**, with significantly slowed growth[45](index=45&type=chunk) - The industry faces an "unorderly price war," leading to record-high manufacturer inventory and continuous declines in transaction prices for both new and used cars[46](index=46&type=chunk) [Business Review](index=18&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5) As a used car trading intermediary, the company optimizes transaction processes through online and offline simultaneous auction models and comprehensive value-added services. During the reporting period, the company continued to expand its key account business, signing over twenty automotive dealer groups, and made progress in the new energy vehicle sector and commercial vehicle disposal business. The company also optimized its auction network layout, establishing 82 auction centers and service outlets covering 329 cities, while strengthening its appraiser team and industry standard development - The company primarily provides used car auction services through a simultaneous auction model, adopting an integrated online and offline approach to offer end-to-end, highly standardized, and reliable used car transaction solutions[47](index=47&type=chunk) - In H1 2025, the company successively signed cooperation agreements with **over twenty automotive dealer groups**, including traditional top 100 groups and new energy top 100 dealer groups[48](index=48&type=chunk) - The company continues to focus on the new energy vehicle sector, achieving daily special auctions for new energy brands and becoming an auction cooperation platform for several major domestic leading brand manufacturers' resource vehicles[48](index=48&type=chunk) - The company has successfully signed cooperation agreements with **two leading platforms** in domestic box-trailer logistics vehicle assets, initiating commercial vehicle disposal business[48](index=48&type=chunk) - As of the end of June 2025, the company had cumulatively established **82 auction centers and service outlets**, covering **329 cities** nationwide[49](index=49&type=chunk) - Over **92% of the company's in-house professional appraiser team** employees have obtained the "Senior Used Car Appraisal and Evaluation Specialist Certificate" qualification[50](index=50&type=chunk) - In H1 2025, the company participated in the drafting of **three industry group standards and specifications**, such as "Motor Vehicle Auction Inspection and Evaluation Procedures" and "Live Auction Procedures"[50](index=50&type=chunk) [Disclosure of Key Operating Data by Business Segment](index=19&type=section&id=%E4%B8%9A%E5%8A%A1%E5%88%86%E9%83%A8%E6%8A%AB%E9%9C%B2%E4%B8%BB%E8%A6%81%E8%90%A5%E8%BF%90%E6%95%B0%E6%8D%AE) This section discloses key operating data for the company's main business segments, including transaction volumes and average revenue per vehicle for used car auctions, value-added services, and consignment arrangements, reflecting the operational status of each business segment Key Operating Data by Business Segment | Business Segment | Indicator | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Used Car Auction Business | Number of Used Car Transactions | 74,411 | 79,439 | | | Average Revenue Per Vehicle (RMB) | 1,264 | 1,678 | | Used Car Value-Added Services | Number of Used Cars Serviced | 89,545 | 100,921 | | | Average Revenue Per Vehicle (RMB) | 318 | 302 | | Used Car Consignment Arrangements | Number of Consumer Trade-in Vehicle Transactions | 6,502 | 9,231 | | | Average Revenue Per Vehicle (RMB) | 2,081 | 1,985 | [Used Car Auction Business](index=20&type=section&id=%E4%BA%8C%E6%89%8B%E8%BD%A6%E6%8B%8D%E5%8D%96%E4%B8%9A%E5%8A%A1) Used car auction is the company's core business, utilizing an integrated online and offline model. In H1 2025, transaction volume and vehicles listed slightly decreased, but the success rate rose to 47.2%. Influenced by declining new car prices, average revenue per vehicle decreased to RMB 1,263.9 - The used car auction business is the company's core business, adopting an integrated online and offline auction model, including simultaneous and online auctions[57](index=57&type=chunk) - In H1 2025, the transaction volume and number of vehicles listed were **74,411 units** and **157,773 units**, respectively, representing a decrease of **6.3%** and **9.4%** compared to H1 2024[58](index=58&type=chunk) - The transaction success rate was approximately **47.2%**, an increase from **45.6%** in H1 2024[58](index=58&type=chunk) - Average revenue per vehicle decreased from **RMB 1,678.0** in H1 2024 to **RMB 1,263.9** in the reporting period, primarily due to the continuous decline in new car prices and marketing policies[58](index=58&type=chunk) [Used Car Value-Added Services](index=20&type=section&id=%E4%BA%8C%E6%89%8B%E8%BD%A6%E5%A2%9E%E5%80%BC%E6%9C%8D%E5%8A%A1) The company provides various value-added services to buyers and sellers. In H1 2025, due to the sluggish automotive dealership industry, the number of used cars serviced by value-added services decreased to 89,545 units, but average revenue per vehicle slightly increased to RMB 317.8 - The company provides various value-added services to upstream and downstream customers, including pre-acquisition appraisal and inspection, used car acquisition support, ADMS system, and registration and transfer services[59](index=59&type=chunk) - In H1 2025, the number of used cars serviced by value-added services decreased from **100,921 units** in H1 2024 to **89,545 units**, primarily due to dealer groups reducing expenses amidst a sluggish automotive dealership industry[60](index=60&type=chunk) - Average revenue per vehicle slightly increased from **RMB 302.0** in H1 2024 to **RMB 317.8** in the reporting period[60](index=60&type=chunk) [Used Car Consignment Arrangements](index=21&type=section&id=%E4%BA%8C%E6%89%8B%E8%BD%A6%E6%94%B6%E9%94%80%E5%AE%89%E6%8E%92) The company partners with dealer groups to arrange the consignment and sale of consumer trade-in vehicles. In H1 2025, due to declining new car business from partner dealers, the number of consumer trade-in vehicle transactions decreased to 6,502 units, but average revenue per vehicle slightly increased to RMB 2,081.5 due to a fixed fee model - Under the used car consignment arrangement business, the company acts as an agent for the consignor (used car owner or dealer group) to dispose of used cars entrusted for sale[61](index=61&type=chunk) - In H1 2025, the number of consumer trade-in vehicle transactions decreased from **9,231 units** in H1 2024 to **6,502 units**, primarily due to the decline in new car business of partner dealers[62](index=62&type=chunk) - Average revenue per vehicle slightly increased from **RMB 1,985.0** in H1 2024 to **RMB 2,081.5** in the reporting period, as fees are fixed per vehicle[62](index=62&type=chunk) [Exhibition Business](index=21&type=section&id=%E5%B1%95%E4%BC%9A%E4%B8%9A%E5%8A%A1) The company provides car exhibition and advertising services, with revenue primarily from booth and advertising fees. In H1 2025, exhibition business revenue dropped to zero, mainly because partner OEMs and dealer groups reduced marketing spending, and the company did not conduct car exhibition sales during the off-season - The company's exhibition business primarily includes organizing car shows and exhibitions for dealer groups and OEMs, as well as providing advertising services[63](index=63&type=chunk) - Exhibition business revenue decreased by **100%** from **RMB 0.7 million** in H1 2024 to **zero** in H1 2025[64](index=64&type=chunk) - The decrease in revenue is mainly attributed to partner companies reducing marketing expenditures, and the company not conducting car exhibition sales during the off-season[64](index=64&type=chunk) [Other Businesses](index=22&type=section&id=%E5%85%B6%E4%BB%96%E4%B8%9A%E5%8A%A1) The company continues to meet the temporary business needs of dealer groups, including providing vehicle registration and transfer services and GPS installation for new cars, primarily targeting existing business partners - The company provides new car registration and transfer services and GPS installation services, primarily for existing business partners[65](index=65&type=chunk) [Outlook](index=22&type=section&id=%E5%89%8D%E6%99%AF) The company is committed to reshaping China's used car transaction process to be standardized, efficient, and transparent. Future plans include expanding the auction network, diversifying supply and demand sources, broadening service offerings, strengthening cooperation with new energy OEMs, enhancing digital products and services, and exploring strategic partnerships and acquisition opportunities - The company will continue to expand and optimize its auction network and upgrade service facilities to strengthen management and improve service quality[66](index=66&type=chunk) - The company will further expand upstream used car supply sources and downstream professional buyer channels to enlarge its seller and buyer base[66](index=66&type=chunk) - The company will further improve and diversify its service offerings and revenue streams to provide better services to upstream and downstream customers[66](index=66&type=chunk) - The company will strengthen cooperation with new energy OEMs and manufacturers to enhance its appraisal, inspection, and transaction capabilities for new energy used cars[66](index=66&type=chunk) - The company will strengthen its digital products and services to build a comprehensive platform for used car data and appraisal/inspection[66](index=66&type=chunk) - The company will explore potential strategic cooperation and acquisition opportunities[66](index=66&type=chunk) [Significant Events After Reporting Period](index=22&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E7%9A%84%E9%87%8D%E5%A4%A7%E4%BA%8B%E4%BB%B6) Except as disclosed in this announcement, no significant events that could materially affect the company and its subsidiaries occurred between the reporting period and the announcement date - Except as disclosed in this announcement, no significant events that could materially affect the company and its subsidiaries occurred between the reporting period and the date of this announcement[67](index=67&type=chunk) [Financial Analysis](index=22&type=section&id=%E8%B4%A2%E5%8A%A1%E5%88%86%E6%9E%90) This section provides a detailed analysis of various financial indicators for the reporting period, including revenue, costs, gross profit, various expenses, other income and gains, finance costs, share of profit/loss of associates, fair value changes of financial instruments, profit before tax, income tax expense, and profit for the period, explaining the reasons for each change [Revenue](index=22&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the company's revenue was RMB 141.8 million, a 25.9% year-on-year decrease, primarily due to reduced revenue from used car auction, value-added services, and consignment arrangements, as well as zero revenue from exhibition business - For the six months ended June 30, 2025, the company recorded revenue of **RMB 141.8 million**, a **25.9% decrease** compared to the same period in 2024[69](index=69&type=chunk) - The decrease in revenue was primarily due to a decline in revenue from used car auction business, used car value-added services business, and used car consignment arrangement business[69](index=69&type=chunk) Revenue Breakdown | Revenue Source | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Used Car Auction Commissions and Service Fees | 94,051 | 66.3 | 133,309 | 69.7 | | Used Car Value-Added Services | 28,456 | 20.1 | 33,179 | 17.3 | | Used Car Consignment Arrangements | 13,534 | 9.5 | 18,326 | 9.6 | | Exhibition Business | – | – | 721 | 0.4 | | Other Services | 5,805 | 4.1 | 5,774 | 3.0 | | **Total** | **141,846** | **100.0** | **191,309** | **100.0** | - Revenue from used car auction commissions and service fees decreased by **29.4%**, mainly due to the continuous decline in new car prices, leading to a decrease in both used car transaction prices and volumes[70](index=70&type=chunk) - Revenue from used car value-added services decreased by **14.2%**, primarily due to the sluggish automotive dealership industry, which led to partner dealer groups reducing expenses and a decline in business volume[71](index=71&type=chunk) - Revenue from used car consignment arrangements decreased by **26.1%**, mainly due to the decline in new car business of partner dealer groups, resulting in reduced demand for used car consignment services[72](index=72&type=chunk) - Exhibition business revenue decreased by **100% to zero**, primarily because partner companies reduced marketing expenditures, and the company did not conduct car exhibition sales during the off-season[73](index=73&type=chunk) [Cost of Sales](index=24&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, cost of sales was RMB 52.6 million, a 22.1% year-on-year decrease, primarily due to proportional reductions in labor costs, professional service costs, and intermediary costs as business transaction volume declined - Cost of sales includes labor costs, professional service costs, intermediary costs, and other costs[74](index=74&type=chunk) - Cost of sales for the six months ended June 30, 2025, was **RMB 52.6 million**, a **22.1% decrease** compared to the same period in 2024[74](index=74&type=chunk) - The decrease was primarily due to a proportional decline in labor costs, professional service costs, and intermediary costs as business transaction volume decreased[74](index=74&type=chunk) [Gross Profit and Gross Profit Margin](index=24&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Due to decreased revenue, gross profit decreased by 27.9% from RMB 123.7 million in H1 2024 to RMB 89.2 million in the reporting period, while gross profit margin fell from 64.7% to 62.9% - Gross profit decreased by **27.9%** from **RMB 123.7 million** in H1 2024 to **RMB 89.2 million** in the reporting period[75](index=75&type=chunk) - Gross profit margin fell from **64.7%** in H1 2024 to **62.9%** in the same period of 2025[75](index=75&type=chunk) [Selling and Distribution Expenses](index=24&type=section&id=%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E5%BC%80%E6%94%AF) Selling and distribution expenses decreased by 23.1% from RMB 39.6 million in H1 2024 to RMB 30.5 million in H1 2025, primarily due to a decrease in staff costs - Selling and distribution expenses decreased by **23.1%** from **RMB 39.6 million** in H1 2024 to **RMB 30.5 million** in H1 2025[76](index=76&type=chunk) - The decrease was primarily due to a decline in staff costs[76](index=76&type=chunk) [Administrative Expenses](index=24&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses decreased by 45.5% from RMB 77.2 million in H1 2024 to RMB 42.1 million in H1 2025, primarily due to the absence of listing expenses and reduced staff salaries and benefits from fewer employees - Administrative expenses decreased by **45.5%** from **RMB 77.2 million** in H1 2024 to **RMB 42.1 million** in H1 2025[77](index=77&type=chunk) - The decrease was primarily due to the absence of listing expenses in H1 2025 and a reduction in staff salaries and benefits resulting from fewer employees[77](index=77&type=chunk) [Other Expenses](index=25&type=section&id=%E5%85%B6%E4%BB%96%E5%BC%80%E6%94%AF) Other expenses decreased by 38.7% from RMB 1.6 million in H1 2024 to RMB 1.0 million in H1 2025, primarily due to a reduction in arbitration compensation - Other expenses primarily include expenses related to subleasing certain areas of auction venues to third parties, and compensation paid to buyers for discrepancies between used car conditions and inspection reports[78](index=78&type=chunk) - Other expenses decreased by **38.7%** from **RMB 1.6 million** in H1 2024 to **RMB 1.0 million** in H1 2025[78](index=78&type=chunk) - The decrease was primarily due to a reduction in arbitration compensation in H1 2025 compared to the same period in 2024[78](index=78&type=chunk) [Other Income and Gains, Net](index=25&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E5%87%80%E9%A2%9D) Other income and gains, net, decreased by 15.3% from RMB 4.5 million in H1 2024 to RMB 3.8 million in H1 2025, primarily due to reduced interest income resulting from lower subsidies provided to business partners - Other income and gains, net, decreased by **15.3%** from **RMB 4.5 million** in H1 2024 to **RMB 3.8 million** in H1 2025[79](index=79&type=chunk) - The decrease was primarily due to reduced interest income in H1 2025, resulting from lower subsidies provided to business partners compared to the same period in 2024[79](index=79&type=chunk) [Finance Costs](index=25&type=section&id=%E8%B4%A2%E5%8A%A1%E6%88%90%E6%9C%AC) Finance costs increased by 9.5% from RMB 3.3 million in H1 2024 to RMB 3.6 million in H1 2025, primarily due to an increase in loan balances - Finance costs increased by **9.5%** from **RMB 3.3 million** in H1 2024 to **RMB 3.6 million** in H1 2025[80](index=80&type=chunk) - The increase was primarily due to an increase in loan balances to **RMB 126.2 million** as of June 30, 2025, compared to **RMB 79.7 million** in the prior year[80](index=80&type=chunk) [Share of Profit/(Loss) of Associates](index=25&type=section&id=%E5%88%86%E5%8D%A0%E8%81%94%E8%90%A5%E5%85%AC%E5%8F%B8%E6%8D%9F%E7%9B%8A) Share of profit/(loss) of associates increased from zero in H1 2024 to RMB 0.1 million in H1 2025, remaining relatively stable - Share of profit/(loss) of associates increased from **zero** in H1 2024 to **RMB 0.1 million** in H1 2025, remaining relatively stable[81](index=81&type=chunk) [Fair Value Changes of Financial Assets and Liabilities Measured at Fair Value Through Profit or Loss](index=25&type=section&id=%E4%BB%A5%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E8%AE%A1%E9%87%8F%E4%B8%94%E5%85%B6%E5%8F%98%E5%8A%A8%E8%AE%A1%E5%85%A5%E5%BD%93%E6%9C%9F%E6%8D%9F%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%9A%84%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E5%8F%98%E5%8A%A8) In H1 2025, fair value changes in financial assets and liabilities measured at fair value through profit or loss were zero, a significant improvement from the RMB 142.3 million loss from fair value changes in financial liabilities in H1 2024, primarily due to the automatic conversion of all convertible redeemable preference shares into ordinary shares - In H1 2025, fair value changes in financial assets measured at fair value through profit or loss recorded **zero** gain/loss, compared to a gain of **RMB 0.04 million** in H1 2024[82](index=82&type=chunk) - In H1 2025, fair value changes in financial liabilities measured at fair value through profit or loss recorded **zero** gain/loss, compared to a loss of **RMB 142.3 million** in H1 2024[83](index=83&type=chunk) - The significant reduction in fair value changes of financial liabilities was primarily due to the automatic conversion of all convertible redeemable preference shares into ordinary shares upon completion of the global offering on May 31, 2024[83](index=83&type=chunk) [Profit/(Loss) Before Tax](index=26&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9%E2%88%95%E4%BA%8F%E6%8D%9F) Profit before tax increased by 111.8% from a loss of RMB 135.7 million in H1 2024 to a profit of RMB 16.0 million in the reporting period, primarily attributable to the absence of fair value change impacts and listing expenses in H1 2025 - Profit before tax increased by **111.8%** from a loss of **RMB 135.7 million** in H1 2024 to a profit of **RMB 16.0 million** in the reporting period[84](index=84&type=chunk) - The increase was primarily attributable to the absence of fair value change impacts and listing expenses in H1 2025[84](index=84&type=chunk) [Income Tax Expense](index=26&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) Income tax expense decreased by 50.4% from RMB 6.5 million in H1 2024 to RMB 3.2 million in the reporting period, primarily due to a decrease in the company's profit before tax in H1 2025 compared to the prior year - Income tax expense decreased by **50.4%** from **RMB 6.5 million** in H1 2024 to **RMB 3.2 million** in the reporting period[85](index=85&type=chunk) - The decrease was primarily due to a decline in the company's profit before tax in H1 2025 compared to the same period in 2024[85](index=85&type=chunk) [Profit for the Period](index=26&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E9%97%B4%E6%BA%A2%E5%88%A9) The company improved from a loss of RMB 142.2 million in H1 2024 to a profit of RMB 12.8 million in the reporting period, a 109.0% improvement, primarily due to the combined effect of the aforementioned factors - The company improved from a loss of **RMB 142.2 million** in H1 2024 to a profit of **RMB 12.8 million** in the reporting period, a **109.0% improvement**[86](index=86&type=chunk) - The improvement was primarily due to the combined effect of the aforementioned factors[86](index=86&type=chunk) [Capital Management, Financing and Financial Policies](index=26&type=section&id=%E8%B5%84%E6%9C%AC%E7%AE%A1%E7%90%86%E3%80%81%E8%9E%8D%E8%B5%84%E5%8F%8A%E8%B4%A2%E5%8A%A1%E6%94%BF%E7%AD%96) The Group's capital management objective is to safeguard its ability to continue as a going concern and maintain a sound capital ratio to support its business and create value for shareholders. The Group adjusts its capital structure based on economic conditions and regularly monitors liquidity needs to ensure sufficient cash reserves. Financing activities include bank deposits, foreign exchange transactions, and other financial instruments - The Group's primary objective of capital management is to safeguard its ability to continue as a going concern and maintain a sound capital ratio to support its business and create maximum value for the company's shareholders[87](index=87&type=chunk) - The Group manages and adjusts its capital structure in response to changes in economic conditions and the risk characteristics of relevant assets[87](index=87&type=chunk) - The Group's policy is to regularly monitor current and anticipated liquidity requirements to ensure sufficient cash reserves are maintained to meet short-term and long-term liquidity needs[88](index=88&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B5%84%E6%9C%AC%E8%B5%84%E6%BA%90) For the six months ended June 30, 2025, the company funded its operations through cash generated from operations and bank borrowings. Cash and cash equivalents increased from RMB 1,046.6 million as of December 31, 2024, to RMB 1,046.8 million - For the six months ended June 30, 2025, the company funded its operating activities through cash generated from operations and bank borrowings[89](index=89&type=chunk) - As of June 30, 2025, cash and cash equivalents increased from **RMB 1,046.6 million** as of December 31, 2024, to **RMB 1,046.8 million**[89](index=89&type=chunk) [Borrowings](index=27&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, outstanding borrowings amounted to RMB 126.2 million, a 3% decrease from RMB 129.5 million as of December 31, 2024. All borrowings bear fixed interest - As of June 30, 2025, outstanding borrowings amounted to **RMB 126.2 million**, a **3% decrease** from **RMB 129.5 million** as of December 31, 2024[90](index=90&type=chunk) - All of the Group's borrowings bear fixed interest[90](index=90&type=chunk) [Gearing Ratio](index=27&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E6%AF%94%E7%8E%87) As of June 30, 2025, the gearing ratio (calculated as total liabilities divided by total assets) was 23.8%, remaining relatively stable compared to 25.0% as of December 31, 2024 - As of June 30, 2025, the gearing ratio (calculated as total liabilities divided by total assets) was **23.8%**, remaining relatively stable compared to **25.0%** as of December 31, 2024[91](index=91&type=chunk) [Material Investments](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84) During the reporting period, the company did not make or hold any material investments (including any investment in which the value of the investee company accounted for 5.0% or more of the Group's total assets as of June 30, 2025) - During the reporting period, the company did not make or hold any material investments (including any investment in which the value of the investee company accounted for **5.0% or more** of the Group's total assets as of June 30, 2025)[92](index=92&type=chunk) [Material Acquisitions and/or Disposals of Subsidiaries](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E2%88%95%E6%88%96%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%9E%E5%85%AC%E5%8F%B8) During the reporting period, the company did not have any material acquisitions and/or disposals of subsidiaries and associated companies - During the reporting period, the company did not have any material acquisitions and/or disposals of subsidiaries and associated companies[93](index=93&type=chunk) [Pledge of Assets](index=27&type=section&id=%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group did not have any pledge of assets - As of June 30, 2025, the Group did not have any pledge of assets[94](index=94&type=chunk) [Future Plans for Material Investments and Capital Assets](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E5%8F%8A%E8%B5%84%E6%9C%AC%E8%B5%84%E4%BA%A7%E7%9A%84%E6%9C%AA%E6%9D%A5%E8%AE%A1%E5%88%92) As of the date of this announcement, the company had no other plans for material investments and capital assets - As of the date of this announcement, the company had no other plans for material investments and capital assets[95](index=95&type=chunk) [Employees](index=28&type=section&id=%E9%9B%87%E5%91%98) As of June 30, 2025, the company had 622 employees, a decrease from 686 employees as of December 31, 2024. The company offers competitive remuneration and training, with total employee benefit expenses (excluding amounts capitalized) of RMB 38.2 million for the reporting period, a decrease from the prior year - As of June 30, 2025, the company had **622 employees**, a decrease from **686 employees** as of December 31, 2024[96](index=96&type=chunk) - The company provides competitive remuneration packages to employees, determined based on experience, qualifications, and market conditions[96](index=96&type=chunk) - During the reporting period, total employee benefit expenses (including Directors' emoluments, but excluding amounts capitalized in cost of used car auction commissions and service fees) were **RMB 38.2 million**, compared to **RMB 56.6 million** in the same period of 2024[96](index=96&type=chunk) [Contingent Liabilities](index=28&type=section&id=%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) As of June 30, 2025, the company had no material contingent liabilities - As of June 30, 2025, the company had no material contingent liabilities[97](index=97&type=chunk) [Foreign Currency Risk and Investment Risk](index=28&type=section&id=%E5%A4%96%E5%B8%81%E9%A3%8E%E9%99%A9%E5%8F%8A%E6%8A%95%E8%B5%84%E9%A3%8E%E9%99%A9) The company's primary operations are in China, with most transactions, assets, and liabilities denominated in RMB, currently posing no significant foreign currency risk, thus no hedging is undertaken. The company invests in low-risk, high-return financial products, with investment risk closely monitored by the finance department led by the CFO - The company's primary operations are located in China, with most transactions conducted in RMB, and the majority of assets and liabilities denominated in RMB, currently posing no significant foreign currency risk[98](index=98&type=chunk) - The company currently does not undertake any financial instrument hedging for foreign currency risk[98](index=98&type=chunk) - The company invests in financial products provided by licensed financial institutions that are considered low-risk and offer higher returns than fixed deposits[99](index=99&type=chunk) - As of June 30, 2025, and December 31, 2024, financial assets measured at fair value through profit or loss were **RMB 4.0 million** and **RMB 3.3 million**, respectively[99](index=99&type=chunk) [Corporate Governance and Other Information](index=29&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B5%84%E6%96%99) This section outlines the company's corporate governance practices, including compliance with the Corporate Governance Code and Model Code for Securities Transactions by Directors, the operation of the Audit Committee, and other key information such as interim dividends, dealings in listed securities, material litigation, use of proceeds from global offering, and report publication [Compliance with Corporate Governance Code](index=29&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company and its directors are committed to maintaining the highest standards of corporate governance and have complied with all code provisions set out in Appendix C1 to the Listing Rules of the Stock Exchange throughout the reporting period - During the reporting period and up to the date of this announcement, the company has complied with all code provisions set out in Appendix C1 to the Listing Rules of the Stock Exchange[100](index=100&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=29&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and all directors have confirmed compliance with the code throughout the reporting period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its securities dealing code[101](index=101&type=chunk) - Following specific enquiries made to all Directors, they confirmed compliance with the Model Code throughout the reporting period[101](index=101&type=chunk) [Audit Committee](index=29&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The company has established an Audit Committee, comprising three members, responsible for considering external auditor matters, overseeing financial reporting, risk management, and internal control systems, and has reviewed the Group's unaudited interim results for the six months ended June 30, 2025 - The company has established an Audit Committee in compliance with Rule 3.21 of the Listing Rules and the Corporate Governance Code, comprising three members (namely Ms. Li Mochou, Mr. Wang Jianping, and Mr. Yan Jun), with Ms. Li serving as chairperson[102](index=102&type=chunk) - The Audit Committee is responsible for considering matters related to the external auditor and their appointment, overseeing the Group's financial reporting system, risk management, and internal control systems, reviewing the Group's financial information, and reviewing policies and practices related to corporate governance[102](index=102&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and is of the opinion that they comply with applicable accounting standards and requirements and that adequate disclosures have been made[103](index=103&type=chunk) [Other Information](index=30&type=section&id=%E5%85%B6%E4%BB%96%E8%B5%84%E6%96%99) This section covers the non-payment of interim dividends, no purchases/sales/redemptions of the company's listed securities, no material litigation, the use of proceeds from the global offering and future plans, and publication information for the interim results announcement and report, along with a list of Board members [Interim Dividend](index=30&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025[104](index=104&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities listed on the Stock Exchange, and as of June 30, 2025, the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities listed on the Stock Exchange[105](index=105&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[105](index=105&type=chunk) [Material Litigation](index=30&type=section&id=%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC) During the reporting period, the company was not involved in any material litigation or arbitration, and the directors were unaware of any outstanding or threatened material litigation or claims - During the reporting period, the company was not involved in any material litigation or arbitration[106](index=106&type=chunk) - The Directors are also unaware of any outstanding or threatened material litigation or claims against the Group during the reporting period and up to the date of this announcement[106](index=106&type=chunk) [Use of Proceeds from Global Offering](index=30&type=section&id=%E5%85%A8%E7%90%83%E5%8F%91%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%B9%E7%94%A8%E9%80%94) The company's shares were listed on May 31, 2024, with net proceeds from the global offering of approximately HKD 83.0 million. As of June 30, 2025, HKD 17.9 million had been utilized, primarily for expanding the auction network, strengthening customer relationships, developing diversified services, and R&D. The company expects to fully utilize the remaining proceeds by December 2028 as disclosed in the prospectus - The net proceeds from the global offering amounted to approximately **HKD 83.0 million**[107](index=107&type=chunk) - As of June 30, 2025, **HKD 17.9 million** of the net proceeds had been utilized in a manner consistent with the disclosures in the "Future Plans and Use of Proceeds" section of the prospectus[107](index=107&type=chunk) - There has been no change in the intended use of the net proceeds, and the company expects to fully utilize the remaining amount by December 2028[107](index=107&type=chunk) Use of Proceeds from Global Offering | Purpose | Percentage (%) | Net Proceeds from Global Offering (HKD millions) | Unutilized Amount as of June 30, 2025 (HKD millions) | Amount Utilized During Reporting Period (HKD millions) | Expected Timeline for Full Utilization of Unutilized Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Expand geographical coverage of auction network | 40.0% | 33.2 | 31.2 | 1.0 | 2028 | | Strengthen relationships with existing sellers and buyers, and attract new sellers and buyers to the platform | 10.0% | 8.2 | 5.0 | 1.6 | 2028 | | Develop and diversify service portfolio and explore new growth areas | 15.0% | 12.5 | 8.5 | 2.0 | 2028 | | Invest in research and development | 15.0% | 12.5 | 7.8 | 2.9 | 2028 | | Establish potential strategic partnerships and alliances with business partners, and make investments and/or acquire controlling interests in target companies | 10.0% | 8.3 | 8.3 | 0 | 2028 | | For working capital and general corporate purposes | 10.0% | 8.3 | 4.3 | 2.0 | 2028 | | **Total** | **100.0%** | **83.0** | **65.1** | **9.5** | | [Publication of Interim Results Announcement and Interim Report](index=33&type=section&id=%E5%88%8A%E5%8F%91%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the Stock Exchange website and the company's website. The interim report for the six months ended June 30, 2025, will be posted on the aforementioned websites and made available to shareholders in due course - This interim results announcement is published on the Stock Exchange website (http://www.hkex.com.hk) and the company's website (www.autostreets.com)[110](index=110&type=chunk) - The interim report for the six months ended June 30, 2025, containing all relevant information required by the Listing Rules, will be posted on the aforementioned websites of the Stock Exchange and the company in due course and made available to shareholders in accordance with their chosen method of receiving company communications[110](index=110&type=chunk) [Board of Directors](index=33&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%88%90%E5%91%98) As of the announcement date, the company's Board of Directors includes Executive Directors Mr. Yang Aihua, Mr. Yang Hansong, Ms. Gao Kun, and Mr. Zhao Hongliang; Non-executive Directors Mr. Rob Huting and Ms. Yang Chuyu; and Independent Non-executive Directors Mr. Wang Jianping, Ms. Li Mochou, and Mr. Yan Jun - As of the date of this announcement, the company's Board of Directors comprises (i) Executive Directors Mr. Yang Aihua, Mr. Yang Hansong, Ms. Gao Kun, and Mr. Zhao Hongliang; (ii) Non-executive Directors Mr. Rob Huting and Ms. Yang Chuyu; and (iii) Independent Non-executive Directors Mr. Wang Jianping, Ms. Li Mochou, and Mr. Yan Jun[112](index=112&type=chunk) [Forward-Looking Statements](index=33&type=section&id=%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%88%E8%BF%B0) This announcement contains forward-looking statements regarding the Group's business outlook, projected business plans, and development strategies, based on current information and expectations at the time of publication. These statements involve subjective factors and risks and uncertainties beyond the Group's control, which may prove inaccurate or unachievable, thus shareholders and potential investors should not unduly rely on them - This announcement contains forward-looking statements regarding the Group's business outlook, projected business plans, and development strategies[113](index=113&type=chunk) - These forward-looking statements are based on certain forecasts, assumptions, and premises, some of which involve subjective factors or are beyond the Group's control[113](index=113&type=chunk) - These forward-looking statements may prove to be incorrect and may not be realized in the future, and shareholders and potential investors should not unduly rely on such statements[113](index=113&type=chunk)

[Summary](index=1&type=section&id=Summary) This section provides a concise overview of the company's key financial performance for the first half of 2025, highlighting revenue, profit, and earnings per share trends 2025 First Half Key Financial Data | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 571.6 | 632.7 | -9.7% | | Gross Profit | 126.6 | 120.5 | +5.0% | | Profit Before Tax | 48.4 | 38.2 | +26.7% | | Profit and Total Comprehensive Income Attributable to Owners of the Company | 42.0 | 32.5 | +29.3% | | Earnings Per Share (RMB cents) | 8.4 | 6.26 | +34.2% | [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) This statement presents the company's financial performance, including revenue, costs, and profit for the six months ended June 30 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 571,583 | 632,707 | | Cost of Sales and Services | (445,011) | (512,194) | | Gross Profit | 126,572 | 120,513 | | Other Income | 11,846 | 15,413 | | Other Gains and Losses | 3,744 | 1,718 | | Selling and Distribution Expenses | (45,871) | (38,234) | | Administrative Expenses | (27,388) | (24,630) | | Research Expenses | (18,836) | (37,250) | | Impairment Losses on Trade and Other Receivables and Contract Assets, Net of Reversals | (1,648) | 974 | | Finance Costs | (8) | (297) | | Profit Before Tax | 48,411 | 38,207 | | Income Tax Expense | (6,413) | (5,720) | | Profit and Total Comprehensive Income for the Period | 41,998 | 32,487 | | Profit and Total Comprehensive Income for the Period Attributable to Owners of the Company | 41,991 | 31,301 | | Basic Earnings Per Share (RMB cents) | 8.40 | 6.26 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity as of June 30, 2025, compared to December 31, 2024 Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Trade Receivables | 38,188 | 93,645 | | Property, Plant and Equipment | 345,637 | 363,228 | | Investment Properties | 6,955 | 7,479 | | Intangible Assets | 567 | 231 | | Right-of-use Assets | 43,824 | 44,258 | | Fixed Deposits | 115,000 | 60,000 | | Deferred Tax Assets | 23,925 | 25,805 | | Deposits Paid for Purchase of Property, Plant and Equipment | 4,263 | 4,190 | | **Total Non-current Assets** | **578,361** | **598,836** | | **Current Assets** | | | | Inventories | 777,938 | 728,620 | | Trade Receivables, Bills Receivable and Other Receivables | 355,099 | 383,809 | | Contract Assets | 25,673 | 41,727 | | Contract Costs | 16,506 | 17,115 | | Recoverable Value Added Tax | 570 | 8,248 | | Prepayments to Suppliers | 69,313 | 86,460 | | Financial Assets at Fair Value Through Profit or Loss | 8,587 | 109,318 | | Fixed Deposits | 168,980 | 98,000 | | Restricted Bank Deposits | 71,646 | 121,782 | | Bank Balances and Cash | 633,676 | 506,443 | | **Total Current Assets** | **2,127,988** | **2,101,522** | | **Current Liabilities** | | | | Trade Payables, Bills Payable and Other Payables | 499,352 | 628,042 | | Contract Liabilities | 1,157,856 | 1,051,915 | | Dividends Payable | 20,185 | – | | Tax Payable | 18,360 | 28,383 | | Bank Borrowings | 300 | 200 | | Deferred Income | 2,751 | 2,659 | | **Total Current Liabilities** | **1,698,804** | **1,711,199** | | **Net Current Assets** | **429,184** | **390,323** | | **Total Assets Less Current Liabilities** | **1,007,545** | **989,159** | | **Total Equity** | **956,641** | **936,215** | | **Non-current Liabilities** | | | | Deferred Income | 43,603 | 46,445 | | Bank Borrowings | – | – | | Deferred Tax Liabilities | 7,301 | 6,499 | | **Total Non-current Liabilities** | **50,904** | **52,944** | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering accounting policies and specific financial items [1. Company Information](index=5&type=section&id=1.%20Company%20Information) China Pengfei Group Co., Ltd. was incorporated in the Cayman Islands in 2017, listed on HKEX in 2019, and primarily engages in equipment manufacturing and production line services - The company was incorporated in the Cayman Islands on July 31, 2017, and listed on the Main Board of the Stock Exchange on November 15, 2019[10](index=10&type=chunk) - Its principal activities include the production and sale of complete sets of equipment (rotary kiln systems, grinding equipment systems, and related components), production line construction, and installation services[10](index=10&type=chunk) - The condensed consolidated financial statements are presented in RMB[11](index=11&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 and the disclosure requirements of Appendix D2 of the Listing Rules - The financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix D2 of the Listing Rules[12](index=12&type=chunk) [3. Significant Accounting Policies](index=5&type=section&id=3.%20Significant%20Accounting%20Policies) The financial statements are primarily prepared on a historical cost basis, with no significant impact from newly adopted IFRS amendments - The condensed consolidated financial statements are prepared on a historical cost basis, except for financial assets at fair value through profit or loss[13](index=13&type=chunk) - The revised International Financial Reporting Standards (IFRS) accounting standards, such as the amendments to IAS 21 "Lack of Exchangeability," adopted for the first time in this interim period, have not had a significant impact on the Group's financial position and performance for the current and prior periods[13](index=13&type=chunk)[14](index=14&type=chunk) [4. Revenue and Segment Information](index=6&type=section&id=4.%20Revenue%20and%20Segment%20Information) Total revenue for the period was RMB 571.6 million, with equipment manufacturing as the main source, while production line construction and installation services saw significant growth, and overseas markets contributed more - Revenue refers to amounts received and receivable from the sale of equipment, production line construction, and the provision of installation services, net of sales-related taxes[15](index=15&type=chunk) Revenue Sources (Six Months Ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale of Equipment | 428,778 | 535,964 | | Revenue from Production Line Construction | 129,712 | 94,438 | | Installation Services | 13,093 | 2,305 | | **Total** | **571,583** | **632,707** | Geographical Revenue (Six Months Ended June 30) | Geographical Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 401,038 | 501,362 | | Uzbekistan | 31,400 | 94,438 | | Republic of Kenya | 53,282 | – | | Republic of Ghana | 40,611 | – | | Republic of Turkey | 15,368 | – | | Republic of Burundi | – | 27,161 | | Other Countries | 29,884 | 9,746 | | **Total** | **571,583** | **632,707** | [5. Profit Before Tax](index=7&type=section&id=5.%20Profit%20Before%20Tax) Profit before tax for the period was RMB 48.4 million, influenced by depreciation, inventory capitalization, and impairment losses on receivables Components of Profit Before Tax (Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 17,671 | 17,297 | | Depreciation of Investment Properties | 524 | 529 | | Amortisation of Intangible Assets | 52 | 21 | | Depreciation of Right-of-use Assets | 442 | 461 | | **Total Depreciation and Amortisation** | **18,689** | **18,308** | | Capitalisation of Inventories | (11,838) | (15,116) | | Total Depreciation and Amortisation Deducted from Profit or Loss | 6,851 | 3,192 | | Impairment Losses on Trade Receivables, Net of Reversals | 3,221 | (2,610) | | Impairment Losses on Other Receivables, Net of Reversals | (92) | 251 | | Impairment Losses on Contract Assets, Net of Reversals | (1,481) | 3,333 | | **Net Impairment Losses** | **1,648** | **974** | [6. Income Tax Expense](index=7&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense increased to RMB 6.4 million, with an effective tax rate of 13.2%, reflecting preferential tax rates for high-tech enterprises in mainland China Income Tax Expense (Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China Corporate Income Tax | 3,731 | 4,111 | | Deferred Tax Expense | 2,682 | 1,609 | | **Total Income Tax Expense** | **6,413** | **5,720** | - For the six months ended June 30, 2025, the effective tax rate was **13.2%** (2024: 15.0%)[48](index=48&type=chunk) - Jiangsu Pengfei Group Co., Ltd., as a high-tech enterprise, enjoys a preferential tax rate of **15%** until November 5, 2027; other Chinese subsidiaries are subject to a **25%** tax rate[20](index=20&type=chunk) [7. Dividends](index=8&type=section&id=7.%20Dividends) The company declared a final dividend for 2024 but the board resolved not to declare an interim dividend for the six months ended June 30, 2025 Dividend Distribution | Dividend Type | Six Months Ended June 30, 2025 (RMB) | Six Months Ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | 2024 Final Dividend (per ordinary share) | 0.04375 | 0.0857 | | Total 2024 Final Dividend | 21,875,000 | 42,850,000 | - The Board of Directors has resolved not to declare a dividend for the six months ended June 30, 2025[22](index=22&type=chunk) [8. Earnings Per Share](index=8&type=section&id=8.%20Earnings%20Per%20Share) Basic earnings per share attributable to owners increased to RMB 8.40 cents for the six months ended June 30, 2025, with no diluted EPS presented due to absence of potential ordinary shares Earnings Per Share Calculation (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (RMB thousand) | 41,991 | 31,301 | | Number of Ordinary Shares (thousand shares) | 500,000 | 500,000 | | Basic Earnings Per Share (RMB cents) | 8.40 | 6.26 | - Diluted earnings per share is not presented as there were no potential ordinary shares in issue for the six months ended June 30, 2024 and 2025[23](index=23&type=chunk) [9. Trade and Other Receivables and Bills Receivable](index=9&type=section&id=9.%20Trade%20and%20Other%20Receivables%20and%20Bills%20Receivable) Total trade and other receivables and bills receivable decreased by 17.6% to RMB 393.3 million, primarily due to a reduction in bills receivable, with non-current trade receivables linked to a deferred payment project in Kazakhstan Trade and Other Receivables and Bills Receivable (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (net of impairment allowance) | 216,485 | 244,616 | | Bills Receivable | 166,674 | 218,415 | | Other Receivables and Prepayments (net of impairment allowance) | 10,130 | 14,423 | | **Total** | **393,289** | **477,454** | - Non-current trade receivables primarily represent the outstanding balance of RMB **38,190,000** (net of impairment allowance of RMB **3,864,000**) related to a production line construction for a customer in the Republic of Kazakhstan, with payment deferred due to extended bank approval procedures, accruing interest at a fixed annual rate of **8.41%**, and secured by a corporate guarantee, equity pledge, and a pledge over the cement plant under construction[24](index=24&type=chunk)[25](index=25&type=chunk) Ageing Analysis of Trade Receivables (Net of Impairment Allowance, As of June 30) | Ageing of Trade Receivables | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 1 year | 108,792 | 115,572 | | 1 to 2 years | 53,784 | 26,387 | | Over 2 years | 53,909 | 102,657 | | **Total** | **216,485** | **244,616** | Ageing Analysis of Bills Receivable (By Issue Date, As of June 30) | Ageing of Bills Receivable | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 180 days | 166,674 | 215,193 | | 181 days to 1 year | – | 3,222 | | **Total** | **166,674** | **218,415** | [10. Trade and Other Payables and Bills Payable](index=11&type=section&id=10.%20Trade%20and%20Other%20Payables%20and%20Bills%20Payable) Total trade and other payables and bills payable decreased by 20.5% to RMB 499.4 million, mainly driven by reductions in trade payables and bills payable Trade and Other Payables and Bills Payable (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 351,747 | 407,298 | | Bills Payable | 79,590 | 142,965 | | Other Taxes Payable | 13,249 | 9,123 | | Amounts Payable to Independent Third Parties | 1,003 | 1,019 | | Accrued Expenses | 1,096 | 3,306 | | Accrued Salaries and Benefits | 9,948 | 20,987 | | Unpaid Incremental Commissions | 39,043 | 39,888 | | Lease Liabilities | 268 | 264 | | Other Payables | 3,408 | 3,192 | | **Total** | **499,352** | **628,042** | Ageing Analysis of Trade Payables (By Invoice Date, As of June 30) | Ageing of Trade Payables | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 1 year | 265,942 | 228,187 | | 1 to 2 years | 18,311 | 137,662 | | Over 2 years | 67,494 | 41,449 | | **Total** | **351,747** | **407,298** | Ageing Analysis of Bills Payable (By Issue/Maturity Date, As of June 30) | Ageing of Bills Payable | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 180 days | 79,590 | 142,965 | [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's operational performance, financial results, and future outlook, along with key risks and uncertainties [Business Review](index=13&type=section&id=Business%20Review) The company diversified its business by targeting non-building materials sectors and 'Belt and Road' markets, while investing in R&D and participating in national standard setting [Expanding Customer Base](index=13&type=section&id=Expanding%20Customer%20Base) The company maintained stable revenue from building materials clients while increasing the proportion of equipment manufacturing revenue from non-building materials sectors - For the six months ended June 30, 2025, revenue from building materials industry customers was approximately **RMB 208.9 million**, a slight increase from approximately RMB 203.9 million in the same period last year[34](index=34&type=chunk) - The proportion of equipment manufacturing revenue from non-building materials industry customers increased from approximately **79.7%** in the same period of 2024 to approximately **81.9%** in 2025[34](index=34&type=chunk) - Over **80%** of rotary kilns are used in emerging industries such as laterite nickel ore, new energy lithium batteries, environmental sludge, and solid waste treatment[34](index=34&type=chunk) [Belt and Road Initiative Countries](index=13&type=section&id=Belt%20and%20Road%20Initiative%20Countries) The company continues to expand its business into potential 'Belt and Road' markets, despite a decrease in revenue contribution from these regions in the current period - The company continues its efforts to expand its business into potential markets along the "Belt and Road" Initiative countries such as Uzbekistan, Kuwait, Turkey, and Sri Lanka[35](index=35&type=chunk) - The proportion of revenue from "Belt and Road" countries decreased from approximately **20.8%** in the same period of 2024 to approximately **11.1%** in 2025[35](index=35&type=chunk) - As of June 30, 2025, the company has one production line project underway in a "Belt and Road" country[35](index=35&type=chunk) [Research and Development and Standard Setting](index=14&type=section&id=Research%20and%20Development%20and%20Standard%20Setting) The company invests in R&D for energy-saving and environmental protection technologies, collaborates with academic institutions, and participates in national standard formulation, holding numerous patents - The company invests in R&D focused on energy-saving and environmental protection technologies, collaborating with Chinese universities and research institutions, such as with Nantong Institute of Technology on "Research and Development of Complete Sets of Equipment for Efficient Preparation of Battery-Grade Lithium Carbonate from Low-Grade Spodumene"[36](index=36&type=chunk) - For the six months ended June 30, 2025, the company participated in the formulation of two national standards, including "Technical Requirements for New Dry Process Cement Production Complete Equipment Part 3: Cement Preparation System"[36](index=36&type=chunk) - As of June 30, 2025, the company holds **174** authorized patents, of which **103** are invention patents, with an additional **100** invention patent applications awaiting approval[36](index=36&type=chunk) [Outlook](index=14&type=section&id=Outlook) The company anticipates continued government stimulus and 'Belt and Road' investments, focusing on quality, innovation, internationalization, and smart applications to become a leading high-end equipment group - The Chinese government is expected to continue implementing economic stimulus policies and encouraging overseas infrastructure investment in "Belt and Road" countries, and the company will continue to leverage the "Belt and Road" Initiative and actively explore related production line construction opportunities[37](index=37&type=chunk) - Global economic growth is expected to slow in the second half of the year, and US tariff policies will impact the company's overseas production line and grinding station EP/EPC businesses; domestic "anti-involution" measures are expected to contribute to increased demand in the building materials industry[37](index=37&type=chunk) - The company will focus on six key areas: improving quality and efficiency for stable growth, promoting high-quality development of equipment manufacturing, strengthening technology-driven innovation, advancing high-quality international operations, accelerating intelligent application development, and successfully completing the reform and enhancement initiative[37](index=37&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) Total revenue decreased by 9.7% to RMB 571.6 million, primarily due to equipment manufacturing decline, but gross profit margin improved to 22.1%, and profit attributable to owners increased by 29.3% to RMB 42.0 million [Revenue](index=15&type=section&id=Revenue) Total revenue decreased by 9.7% to RMB 571.6 million, with equipment manufacturing declining while installation services and production line construction saw significant growth Revenue Composition (Six Months Ended June 30) | Business Line | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Equipment Manufacturing | 428,778 | 535,964 | -20.0% | | Installation Services | 13,093 | 2,305 | +468.0% | | Production Line Construction | 129,712 | 94,438 | +37.4% | | **Total** | **571,583** | **632,707** | **-9.7%** | - The decrease in equipment manufacturing revenue was primarily due to reduced sales of grinding equipment systems[39](index=39&type=chunk) - The increase in installation services revenue was mainly due to increased demand for installation services from equipment manufacturing customers[39](index=39&type=chunk) - The increase in production line construction revenue was primarily due to three new production lines[39](index=39&type=chunk) [Cost of Sales and Services](index=15&type=section&id=Cost%20of%20Sales%20and%20Services) Cost of sales and services decreased by 13.1% to RMB 445.0 million, mainly due to lower raw material costs, leading to an improved gross profit margin of 22.1% - Cost of sales and services decreased by **13.1%** (approximately RMB **67.2 million**) to **RMB 445.0 million**[40](index=40&type=chunk) - Raw material costs, as the largest component, decreased by approximately **RMB 61.3 million**[40](index=40&type=chunk) - Gross profit increased by **5.0%** to **RMB 126.6 million**, with the gross profit margin improving from **19.0%** to **22.1%**[41](index=41&type=chunk) [Other Income](index=16&type=section&id=Other%20Income) Other income decreased by 23.1% to RMB 11.8 million, primarily due to reductions in interest income and government grants - Other income decreased by **23.1%** (approximately RMB **3.6 million**) to **RMB 11.8 million**[42](index=42&type=chunk) - The decrease was mainly due to lower interest income and government grants[42](index=42&type=chunk) [Other Gains and Losses](index=16&type=section&id=Other%20Gains%20and%20Losses) Other gains increased by 117.9% to RMB 3.7 million, mainly driven by higher net gains from the disposal of financial assets - Other gains increased by **117.9%** (approximately RMB **2.0 million**) to **RMB 3.7 million**[43](index=43&type=chunk) - The increase was mainly due to higher net gains from the disposal of financial assets[43](index=43&type=chunk) [Selling and Distribution Expenses](index=16&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by 20.0% to RMB 45.9 million, primarily due to higher commissions and port charges - Selling and distribution expenses increased by **20.0%** (approximately RMB **7.6 million**) to **RMB 45.9 million**[44](index=44&type=chunk) - The increase was mainly due to higher commissions and port charges[44](index=44&type=chunk) [Administrative Expenses](index=16&type=section&id=Administrative%20Expenses) Administrative expenses increased by 11.2% to RMB 27.4 million, mainly attributable to higher staff salaries - Administrative expenses increased by **11.2%** (approximately RMB **2.8 million**) to **RMB 27.4 million**[45](index=45&type=chunk) - The increase was mainly due to higher staff salaries[45](index=45&type=chunk) [Research Expenses](index=16&type=section&id=Research%20Expenses) Research expenses decreased significantly by 49.4% to RMB 18.8 million, primarily due to reduced R&D costs for environmental production technology equipment - Research expenses decreased by **49.4%** (approximately RMB **18.4 million**) to **RMB 18.8 million**[46](index=46&type=chunk) - The decrease was mainly due to reduced research and development expenses for environmental production technology-related equipment[46](index=46&type=chunk) [Impairment Losses on Trade and Other Receivables and Contract Assets, Net of Reversals](index=17&type=section&id=Impairment%20Losses%20on%20Trade%20and%20Other%20Receivables%20and%20Contract%20Assets%2C%20Net%20of%20Reversals) Impairment losses increased by 269.2% to RMB 1.6 million, primarily due to an increase in long-aged outstanding trade receivables - Impairment losses increased by **269.2%** from a reversal of approximately RMB **1.0 million** in the same period of 2024 to a loss of approximately RMB **1.6 million** in the same period of 2025[47](index=47&type=chunk) - The increase was mainly due to an increase in long-aged outstanding trade receivables[47](index=47&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 12.1% to RMB 6.4 million, while the effective tax rate decreased to 13.2% - Income tax expense increased by **12.1%** (approximately RMB **0.7 million**) to **RMB 6.4 million**[48](index=48&type=chunk) - The effective tax rate decreased from **15.0%** in the same period of 2024 to **13.2%** in the same period of 2025[48](index=48&type=chunk) [Profit and Total Comprehensive Income for the Period](index=17&type=section&id=Profit%20and%20Total%20Comprehensive%20Income%20for%20the%20Period) Profit and total comprehensive income attributable to owners increased by 29.3% to RMB 42.0 million - Profit and total comprehensive income for the period attributable to owners of the Company increased by **29.3%** (approximately RMB **9.5 million**) to **RMB 42.0 million**[49](index=49&type=chunk) [Working Capital Management](index=17&type=section&id=Working%20Capital%20Management) The company maintained sufficient working capital, with net current assets increasing to RMB 429.2 million and a current ratio of 125.3%, despite increased inventory and trade receivables turnover days - Net current assets were approximately **RMB 429.2 million** (December 31, 2024: RMB 390.3 million), and the current ratio improved to **125.3%** (December 31, 2024: 122.8%)[50](index=50&type=chunk) - Inventories increased by **6.8%** to **RMB 777.9 million**, and inventory turnover days increased to **304 days** (2024: 263 days), mainly due to increased domestic sales orders but decreased sales volume[50](index=50&type=chunk) - Trade receivables, bills receivable, and other receivables decreased by **17.6%** to **RMB 393.3 million**, with bills receivable decreasing by **23.7%**; trade receivables turnover days increased to **79 days** (2024: 34 days), mainly due to decreased sales volume[51](index=51&type=chunk) - Contract liabilities increased by **10.1%** to **RMB 1,157.9 million**, primarily due to prepayments received from customers for new and ongoing contracts[52](index=52&type=chunk) [Liquidity, Financial and Capital Resources](index=19&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) The company's liquidity is supported by operating cash flow and bank financing, with cash and cash equivalents increasing to RMB 702.7 million and an improved gearing ratio of 183% - As of June 30, 2025, cash and cash equivalents were approximately **RMB 702.7 million** (December 31, 2024: approximately RMB 555.4 million)[53](index=53&type=chunk) - Total bank facilities amounted to approximately **RMB 1,330 million**, of which approximately **RMB 251.7 million** was utilized (including bank guarantees, bank acceptance bills, and loans), leaving unutilized facilities of approximately **RMB 1,078.3 million**[54](index=54&type=chunk) - The gearing ratio decreased from **188.8%** as of December 31, 2024, to **183%** as of June 30, 2025, mainly due to an increase in the equity balance[54](index=54&type=chunk) Cash Flow (Six Months Ended June 30) | Cash Flow | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 103.0 | 150.7 | | Net Cash Used in Investing Activities | (94.7) | (38.5) | | Net Cash Used in Financing Activities | (1.3) | (36.7) | [Principal Risks and Uncertainties](index=20&type=section&id=Principal%20Risks%20and%20Uncertainties) The company faces market risks (currency, interest rate), credit risk, and liquidity risk, with credit risk concentrated in production line construction clients and managed through credit limits and recovery procedures [Financial Risks](index=20&type=section&id=Financial%20Risks) The Group is exposed to market risks arising from changes in market interest rates and prices, including currency, interest rate, credit, and liquidity risks - The Group is exposed to market risks arising from changes in market interest rates and prices, including currency, interest rate, credit, and liquidity risks[56](index=56&type=chunk) [Currency Risk](index=20&type=section&id=Currency%20Risk) Currency risk primarily relates to USD-denominated sales to non-mainland China customers, which management considers insignificant, thus no hedging policies are adopted - Currency risk primarily relates to USD-denominated sales to customers outside mainland China[57](index=57&type=chunk) - Management considers foreign exchange risk to be insignificant and has not adopted any foreign exchange hedging policies or held derivative financial instruments[57](index=57&type=chunk) [Interest Rate Risk](index=20&type=section&id=Interest%20Rate%20Risk) Interest rate risk is associated with bank borrowings, lease liabilities, and bank balances, with management continuously monitoring and considering hedging if necessary - Interest rate risk is primarily associated with bank borrowings, lease liabilities, loans to independent third parties, amounts payable to independent third parties, and floating-rate restricted bank balances and bank balances[58](index=58&type=chunk) - The company currently has no formal interest rate hedging policy, but management continuously monitors the risk and will consider hedging if necessary[58](index=58&type=chunk) [Credit Risk](index=20&type=section&id=Credit%20Risk) Credit risk is concentrated in trade receivables from production line construction clients, managed through credit limits, approval processes, and overdue debt recovery procedures - Credit risk primarily arises from trade receivables, bills receivable and other receivables, contract assets, restricted bank deposits, and bank balances[59](index=59&type=chunk) - Credit risk is concentrated, with **40%** of total trade receivables due from production line construction customers[59](index=59&type=chunk) - The company mitigates credit risk by assigning teams responsible for credit limits, approval, and overdue debt recovery procedures, and by reviewing the recoverability of receivables to make adequate impairment loss provisions[59](index=59&type=chunk) [Liquidity Risk](index=20&type=section&id=Liquidity%20Risk) The company has not experienced any liquidity shortages and manages liquidity risk by maintaining sufficient cash and cash equivalents - For the six months ended June 30, 2025, the company did not experience any liquidity shortages[60](index=60&type=chunk) - The company manages liquidity risk by maintaining sufficient cash and cash equivalents[60](index=60&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[61](index=61&type=chunk) [Capital Expenditure](index=21&type=section&id=Capital%20Expenditure) Capital expenditure for the six months ended June 30, 2025, was approximately RMB 0.5 million, primarily for the purchase of property, plant, and equipment - For the six months ended June 30, 2025, the Group's capital expenditure was approximately **RMB 0.5 million**[62](index=62&type=chunk) - This was primarily related to the purchase of property, plant, and equipment and associated deposit policies[62](index=62&type=chunk) [Pledge of Assets](index=21&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, restricted bank deposits of approximately RMB 71.6 million were pledged to banks for the issuance of bills payable - As of June 30, 2025, restricted bank deposits of approximately **RMB 71.6 million** were pledged to banks for the issuance of bills payable[63](index=63&type=chunk) [Capital Commitments](index=21&type=section&id=Capital%20Commitments) As of June 30, 2025, capital commitments related to contracted but unprovided for property, plant, and equipment purchases amounted to approximately RMB 3.0 million - As of June 30, 2025, the Group's capital expenditure related to contracted but unprovided for purchases of property, plant, and equipment was approximately **RMB 3.0 million**[64](index=64&type=chunk) [Off-Balance Sheet Transactions](index=21&type=section&id=Off-Balance%20Sheet%20Transactions) The company has not entered into any significant off-balance sheet transactions or arrangements, other than disclosed capital commitments and pledged assets - Other than the disclosed capital commitments and pledged assets, the company has not entered into any significant off-balance sheet transactions or arrangements for the six months ended June 30, 2025, and up to the date of this announcement[65](index=65&type=chunk) [Employees and Remuneration Information](index=21&type=section&id=Employees%20and%20Remuneration%20Information) As of June 30, 2025, the company had 1,003 employees with total staff costs of approximately RMB 62.0 million, maintaining good employee relations and providing regular training - As of June 30, 2025, the Group had **1,003** employees (June 30, 2024: 894 employees)[66](index=66&type=chunk) - For the six months ended June 30, 2025, staff costs (including directors' remuneration) were approximately **RMB 62.0 million** (2024: approximately RMB 57.6 million)[66](index=66&type=chunk) - The company provides regular training covering aspects such as safety production, sales and marketing, laws and regulations, technical skills, management, and production quality[66](index=66&type=chunk) - The company maintains good working relationships with its employees, with no significant labor disputes occurring[66](index=66&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section covers additional disclosures including material investments, future plans, post-reporting period events, and compliance with corporate governance standards [Material Investments Held, Material Acquisitions or Disposals](index=22&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20or%20Disposals) As of June 30, 2025, the company held financial assets at fair value through profit or loss of RMB 8.6 million, primarily Taikang Kaitai wealth management products, and redeemed some structured deposits, with no other significant investments or disposals - As of June 30, 2025, the company held financial assets at fair value through profit or loss of **RMB 8.6 million** (December 31, 2024: RMB 109.3 million), representing **0.32%** of total assets[67](index=67&type=chunk) Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Financial Asset | Subscription Date | Interest Rate (per annum) | Maturity Date | Principal Subscribed (HKD thousand) | Fair Value Change for Six Months Ended June 30, 2025 (HKD thousand) | Carrying Amount as of June 30, 2025 (HKD thousand) | Percentage of Group's Total Assets | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Taikang Kaitai Wealth Management Product Class A - HKD - Accumulative, Taikang Kaitai HKD Money Market Fund | July 9, 2024 | Depends on other factors | No fixed term | 9,000 | 338.1 | 9,338.1 | 0.32% | - The company redeemed China Bank linked structured deposit wealth management products in February 2025, with annual interest rates of **2.7891%** and **1.4%** respectively[69](index=69&type=chunk) - Save as disclosed above, for the six months ended June 30, 2025, the company did not hold any material investments or undertake any material acquisitions or disposals of subsidiaries, associates, and joint ventures[68](index=68&type=chunk) [Future Plans for Material Investments and Capital Assets](index=23&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) The company has no future plans for material investments and capital assets other than those disclosed in its prospectus - Save as disclosed in the company's prospectus dated October 31, 2019, the Group has no other future plans for material investments and capital assets as of the date of this announcement[70](index=70&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) After the reporting period, China Heavy Machinery Engineering Co., Ltd. subscribed to a Huatai Global Investment Fund wealth management product for HKD 28 million, with no other significant subsequent events - On August 6, 2025, China Heavy Machinery Engineering Co., Ltd. (an indirect wholly-owned subsidiary) subscribed to a wealth management product of Huatai Global Investment Fund for **HKD 28,000,000**[71](index=71&type=chunk) - Save as disclosed above, no other significant events affecting the Group occurred after June 30, 2025[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&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 the company's listed securities during the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[73](index=73&type=chunk) [Interim Dividend](index=23&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[74](index=74&type=chunk) [Compliance with Corporate Governance Code](index=23&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company has complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 of the HKEX Listing Rules for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company has complied with the code provisions set out in Part 2 of the Corporate Governance Code[75](index=75&type=chunk) [Standard Code for Securities Transactions by Directors](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors confirmed compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025 - All directors have confirmed that they have complied with the Standard Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025[76](index=76&type=chunk) [Review of Unaudited Interim Results by Audit Committee](index=24&type=section&id=Review%20of%20Unaudited%20Interim%20Results%20by%20Audit%20Committee) The Audit Committee reviewed the unaudited interim condensed consolidated financial information for the six months ended June 30, 2025, confirming compliance with applicable standards and rules, though it was not audited or reviewed by the Group's auditor - The Audit Committee has reviewed the unaudited interim condensed consolidated financial information of the Group for the six months ended June 30, 2025[77](index=77&type=chunk) - The Audit Committee is of the opinion that the financial information complies with applicable accounting standards, the Listing Rules, and other legal requirements, and that adequate disclosures have been made[77](index=77&type=chunk) - This financial information has not been audited or reviewed by Deloitte Touche Tohmatsu, the Group's auditor[77](index=77&type=chunk) [Publication of Interim Results and Interim Report on HKEX and Company Website](index=24&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) This announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders and published on these platforms in due course - This announcement has been published on the website of the Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the company's website (http://pengfei.com.cn/)[78](index=78&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to the company's shareholders and published on the HKEX and company websites in due course[78](index=78&type=chunk)

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) An overview of the Group's financial performance and position for the interim period [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's loss for the six months ended June 30, 2025, expanded to HKD 38,349 thousand, primarily due to decreased revenue and increased gross loss | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 148,376 | 191,131 | (42,755) | -22.37% | | Cost of sales | (158,411) | (187,061) | 28,650 | -15.32% | | Gross loss/profit | (10,035) | 4,070 | (14,105) | -346.56% | | Loss before tax | (38,349) | (26,709) | (11,640) | 43.58% | | Loss for the period | (38,349) | (26,725) | (11,624) | 43.49% | | Basic and diluted loss per share | (24.98) HK cents | (21.99) HK cents | (2.99) HK cents | 13.60% | [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) Total comprehensive expense for the six months ended June 30, 2025, increased to HKD 36,271 thousand, driven by expanded loss for the period, partially offset by exchange gains from foreign operations | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Loss for the period | (38,349) | (26,725) | (11,624) | | Exchange differences on translation of foreign operations | 2,078 | (6) | 2,084 | | Total comprehensive expense for the period | (36,271) | (26,731) | (9,540) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net current liabilities expanded to HKD 253,268 thousand, with total assets less current liabilities at negative HKD 158,374 thousand, indicating deteriorating financial health | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 94,894 | 97,423 | (2,529) | -2.59% | | Current assets | 227,606 | 255,457 | (27,851) | -10.90% | | Current liabilities | 480,874 | 475,714 | 5,160 | 1.08% | | Net current liabilities | (253,268) | (220,257) | (33,011) | 14.99% | | Total assets less current liabilities | (158,374) | (122,834) | (35,540) | 28.93% | | Net liabilities | (175,441) | (140,487) | (34,954) | 24.88% | | Capital deficiency attributable to owners of the Company | (173,779) | (139,038) | (34,741) | 25.00% | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Detailed explanations and disclosures regarding the Group's financial statements [Company Information](index=5&type=section&id=Company%20Information) Ying Sheng Science Limited is a Bermuda-registered investment holding company with subsidiaries primarily engaged in toy manufacturing and agricultural product sales, with financial statements presented in HKD - The Company's principal business is investment holding, with subsidiaries primarily engaged in toy manufacturing and sales, and agricultural product cultivation and sales[7](index=7&type=chunk) - The condensed consolidated financial statements are presented in HKD, which is also the Company's functional currency[8](index=8&type=chunk) [Basis of Preparation of Condensed Consolidated Financial Statements](index=5&type=section&id=Basis%20of%20Preparation%20of%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements are prepared under HKAS 34 and Listing Rules on a going concern basis, despite significant losses and net current liabilities, with the Board implementing measures to ensure working capital [Ability of the Group to Continue as a Going Concern](index=5&type=section&id=Ability%20of%20the%20Group%20to%20Continue%20as%20a%20Going%20Concern) The Group faces going concern challenges with a HKD 38.3 million loss and HKD 253.3 million net current liabilities, prompting the Board to extend financing, implement cost savings, and explore other funding - The Group incurred a loss attributable to owners of the Company of approximately **HKD 38,302 thousand** for the six months ended June 30, 2025[10](index=10&type=chunk) - As of June 30, 2025, the Group had net current liabilities of approximately **HKD 253,268 thousand**, net liabilities of approximately **HKD 175,441 thousand**, and a capital deficiency attributable to owners of the Company of approximately **HKD 173,779 thousand**[10](index=10&type=chunk) - The Board has implemented several measures to improve the financial position, including extending bank financing maturity dates, implementing aggressive cost-saving measures, and considering other necessary financing arrangements[11](index=11&type=chunk)[15](index=15&type=chunk) [Principal Accounting Policies](index=6&type=section&id=Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, adopting consistent accounting policies with the 2024 annual statements, with no significant impact from new HKFRS amendments [New Accounting Standards and Changes in Accounting Policies](index=6&type=section&id=New%20Accounting%20Standards%20and%20Changes%20in%20Accounting%20Policies) Amendments to HKAS 21 regarding lack of exchangeability had no impact on the interim condensed consolidated financial information, as the Group's transaction and functional currencies are convertible - The amendments to HKAS 21 regarding lack of exchangeability had no impact on the interim condensed consolidated financial information, as the currencies in which the Group conducts transactions and its functional currencies are convertible[14](index=14&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from toy product sales, which decreased by 21.8% to HKD 148.4 million for the six months ended June 30, 2025, with no agricultural product sales - Revenue represents income generated from the sale of toy products and agricultural products during the period, with all revenue recognized upon delivery of goods to customers[16](index=16&type=chunk) - The Group presents two reportable segments: Toys (manufacturing and sales of toys) and Agricultural Products (cultivation and sales of agricultural products)[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Segment Revenue and Results](index=8&type=section&id=Segment%20Revenue%20and%20Results) For the six months ended June 30, 2025, toy segment revenue decreased by 21.8% to HKD 148,376 thousand, while the agricultural segment generated no revenue, leading to an expanded loss for the toy segment | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Toy Segment** | | | | | | Revenue from external customers | 148,376 | 189,771 | (41,395) | -21.81% | | Reportable segment loss before tax | (37,819) | (18,344) | (19,475) | 106.17% | | Depreciation of property, plant and equipment | (15) | (5,540) | 5,525 | -99.73% | | Write-down of inventories, net | (161) | (2,666) | 2,505 | -93.96% | | **Agricultural Products Segment** | | | | | | Revenue from external customers | – | 1,360 | (1,360) | -100.00% | | Reportable segment loss before tax | (213) | (754) | 541 | -71.75% | [Segment Assets and Liabilities](index=9&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the toy segment reported total assets of HKD 316,199 thousand and liabilities of HKD 414,143 thousand; the agricultural segment had assets of HKD 4,527 thousand and liabilities of HKD 1,276 thousand | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Toy Segment** | | | | | | Reportable segment assets | 316,199 | 336,812 | (20,613) | -6.12% | | Reportable segment liabilities | (414,143) | (426,334) | 12,191 | -2.86% | | **Agricultural Products Segment** | | | | | | Reportable segment assets | 4,527 | 4,325 | 202 | 4.67% | | Reportable segment liabilities | (1,276) | (1,077) | (199) | 18.48% | | **Total** | | | | | | Total assets | 322,500 | 352,880 | (30,380) | -8.61% | | Total liabilities | (497,941) | (493,367) | (4,574) | 0.93% | [Other Income, Gains and Losses](index=10&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) For the six months ended June 30, 2025, net other income, gains, and losses resulted in a HKD 957 thousand loss, a significant decline from the prior year's gain, mainly due to exchange losses and reduced miscellaneous income | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net exchange (loss) gain | (1,528) | 3,933 | (5,461) | | Miscellaneous income | 82 | 1,347 | (1,265) | | Total | (957) | 6,806 | (7,763) | [Finance Costs](index=10&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs slightly decreased to HKD 7,077 thousand, primarily due to lower bank loan interest, despite a notable increase in short-term loan interest | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Interest on bank loans | 2,882 | 4,975 | (2,093) | | Interest on short-term loans | 2,201 | 563 | 1,638 | | Total | 7,077 | 7,568 | (491) | [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group reported zero income tax expense, compared to HKD 16 thousand in the prior year, reflecting tax rates in China and Hong Kong and double taxation avoidance arrangements - For the six months ended June 30, 2025, the Group's income tax expense was **zero**, compared to HKD 16 thousand in the prior year[27](index=27&type=chunk) - The tax rate for Chinese subsidiaries is **25%**, while Hong Kong profits tax rate is **16.5%**[27](index=27&type=chunk) - China and Hong Kong have a double taxation avoidance arrangement, allowing eligible Hong Kong companies to enjoy a **5%** preferential withholding tax rate[27](index=27&type=chunk) [Loss for the Period](index=12&type=section&id=Loss%20for%20the%20Period) The loss for the period is net of various expenses, including total employee benefit expenses of HKD 74,524 thousand, inventory costs recognized as expense of HKD 198,801 thousand, and depreciation of property, plant and equipment of HKD 266 thousand | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Total employee benefit expenses | 74,524 | 73,676 | 848 | | Cost of inventories recognized as expense | 198,801 | 215,898 | (17,097) | | Depreciation of property, plant and equipment | 266 | 6,161 | (5,895) | | Depreciation of right-of-use assets | 164 | 945 | (781) | [Dividends](index=12&type=section&id=Dividends) The Board of Directors resolved not to pay, declare, or recommend any dividends for the interim period ended June 30, 2025 - No dividends were paid, declared, or recommended during the interim period[30](index=30&type=chunk) [Loss Per Share](index=13&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company increased to HKD 24.98 cents, primarily due to expanded loss and an increase in the weighted average number of ordinary shares | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company (HKD thousands) | (38,302) | (26,565) | (11,737) | | Weighted average number of ordinary shares (thousands) | 153,303 | 120,780 | 32,523 | | Basic and diluted loss per share (HK cents) | (24.98) | (21.99) | (2.99) | - Diluted loss per share is the same as basic loss per share because the conversion of convertible bonds would result in a reduction in loss per share[31](index=31&type=chunk) [Movements in Property, Plant and Equipment and Right-of-Use Assets](index=13&type=section&id=Movements%20in%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) During the interim period, the Group acquired property, plant and equipment with a total carrying amount of approximately HKD 940 thousand, a significant decrease from the prior year, with no new lease agreements or equipment sales - The total carrying amount of property, plant and equipment acquired during the interim period was approximately **HKD 940 thousand**, a significant decrease from HKD 5,397 thousand in the prior period[32](index=32&type=chunk) - No machinery and equipment were disposed of, and no new lease agreements for the use of plant were entered into during the interim period[32](index=32&type=chunk) [Trade Receivables](index=14&type=section&id=Trade%20Receivables) As of June 30, 2025, the Group's total trade receivables significantly decreased to HKD 71,953 thousand, mainly due to a reduction in receivables aged 31 to 90 days | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | 0 to 30 days | 37,380 | 40,929 | (3,549) | | 31 to 90 days | 30,226 | 59,615 | (29,389) | | Over 90 days | 4,347 | 2,790 | 1,557 | | Total | 71,953 | 103,334 | (31,381) | - The Group primarily trades with customers on credit terms of **30 to 60 days**, and all trade receivables are expected to be recovered within one year[33](index=33&type=chunk) [Trade Payables](index=14&type=section&id=Trade%20Payables) As of June 30, 2025, the Group's total trade payables slightly increased to HKD 213,508 thousand, primarily driven by a notable increase in payables aged over 90 days | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | 0 to 30 days | 89,592 | 103,007 | (13,415) | | 31 to 90 days | 32,296 | 50,527 | (18,231) | | Over 90 days | 91,620 | 51,090 | 40,530 | | Total | 213,508 | 204,624 | 8,884 | - Trade payables are expected to be settled within one year[34](index=34&type=chunk) [Borrowings](index=15&type=section&id=Borrowings) As of June 30, 2025, the Group's total borrowings increased to HKD 229,830 thousand, mainly due to a significant rise in unsecured short-term loans, with all borrowings classified as current | Borrowing Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Subtotal secured loans | 187,845 | 206,589 | (18,744) | -9.07% | | Subtotal unsecured loans | 41,985 | 10,500 | 31,485 | 299.86% | | Total | 229,830 | 217,089 | 12,741 | 5.87% | - Total bank loans of **RMB 260,000,000** were granted, of which approximately **RMB 110,211,000** has been utilized and extended to December 2, 2026[37](index=37&type=chunk) - Several new unsecured short-term loans were obtained, including **HKD 30,000 thousand** from an independent third party at a fixed annual interest rate of **12%**, and an interest-free short-term loan of **HKD 1,485 thousand**[35](index=35&type=chunk)[40](index=40&type=chunk) [Events After the Reporting Period](index=17&type=section&id=Events%20After%20the%20Reporting%20Period) On July 15, 2025, the Company obtained an interest-free loan of HKD 2,000,000 from a director, repayable on demand - On July 15, 2025, the Company obtained an interest-free loan of **HKD 2,000,000** from a director, with repayment terms on demand[39](index=39&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) An overview of the Group's operational and financial performance, highlighting key challenges and strategic responses [Business Review](index=18&type=section&id=Business%20Review) The Group's toy business faced challenges from US tariffs and rising labor costs, leading to decreased revenue and increased gross loss, while the agricultural products segment generated no revenue for the period - The Group is primarily engaged in the manufacturing and trading of toys and the cultivation and sales of agricultural products[42](index=42&type=chunk) - The toy business faced challenges due to additional US tariffs on Chinese goods and rising labor costs in China, including minimum wage and social insurance, leading to increased product costs, reduced order volumes, and pressure on operating profit margins[42](index=42&type=chunk) - For the interim period ended June 30, 2025, the Group recorded a gross loss of approximately **HKD 10.0 million**, a decrease of approximately **HKD 14.1 million** compared to a gross profit of HKD 4.1 million in the prior year[42](index=42&type=chunk) [Toy Business](index=18&type=section&id=Toy%20Business) For the interim period ended June 30, 2025, toy segment revenue decreased by 21.8% to HKD 148.4 million, primarily due to US tariffs and rising labor costs impacting orders and profit margins - For the interim period ended June 30, 2025, revenue from the toy segment decreased by **21.8%** to **HKD 148.4 million**[44](index=44&type=chunk) - The decrease in revenue was primarily due to additional US tariffs on Chinese goods, leading to reduced purchasing orders and selling prices, coupled with rising labor costs, which impacted profit margins and gross loss[44](index=44&type=chunk) [Agricultural Products Sales Segment](index=19&type=section&id=Agricultural%20Products%20Sales%20Segment) For the interim period ended June 30, 2025, the Group generated no sales from the agricultural products segment, compared to HKD 1.3 million in the prior year - For the interim period ended June 30, 2025, the Group generated **no sales** from the agricultural products segment (June 30, 2024: HKD 1.3 million)[45](index=45&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) As of June 30, 2025, the Group's net current liabilities expanded to HKD 253.3 million, with a current ratio of 0.47 times and total borrowings increasing to HKD 229.8 million, indicating increased financial leverage and risk | Indicator | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | Change (HKD millions) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net current liabilities | 253.3 | 220.3 | 33.0 | 14.98% | | Cash and cash equivalents | 34.1 | 55.3 | (21.2) | -38.34% | | Current ratio | 0.47 times | 0.54 times | (0.07) times | -12.96% | | Total borrowings | 229.8 | 217.1 | 12.7 | 5.85% | | Capital deficiency attributable to owners of the Company | 173.8 | 139.0 | 34.8 | 25.04% | | Gearing ratio | 170% | 136.7% | 33.3% | 24.36% | - The increase in capital deficiency was primarily due to the Group incurring operating losses during the period[46](index=46&type=chunk) [Outlook](index=20&type=section&id=Outlook) To mitigate US tariff impacts, the Group is expanding its domestic market client base and automating manufacturing processes to reduce labor costs, aiming for long-term success through operational efficiency and market diversification - To mitigate the impact of US tariffs, the Group is focusing on expanding its customer base in the **China domestic market**[48](index=48&type=chunk) - The Group is committed to advancing the **automation of manufacturing processes** to reduce labor costs and enhance production efficiency[48](index=48&type=chunk) - The management team will address challenges and pursue long-term success through strategic initiatives such as improving operational efficiency, fostering innovation, and diversifying market presence[48](index=48&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) Additional disclosures on corporate governance, director's securities transactions, interim dividend, and board composition [Interim Dividend](index=18&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[41](index=41&type=chunk) [Corporate Governance Code](index=20&type=section&id=Corporate%20Governance%20Code) The Board confirmed the Company's compliance with the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Board confirmed that the Company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the reporting period[49](index=49&type=chunk) [Standard Code for Securities Transactions by Directors of Listed Issuers](index=20&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company adopted a custom code no less stringent than the Listing Rules' Appendix 10 Standard Code, with directors confirming compliance during the reporting period - The Company has adopted a custom code, and the directors confirmed compliance with both the custom code and the Standard Code throughout the reporting period[50](index=50&type=chunk) [Review of Interim Financial Statements](index=21&type=section&id=Review%20of%20Interim%20Financial%20Statements) The Audit Committee reviewed the unaudited condensed consolidated results for the six months ended June 30, 2025, confirming their preparation in accordance with applicable accounting standards and adequate disclosure - The Audit Committee has reviewed the interim financial statements and believes they have been prepared in accordance with applicable accounting standards and requirements, with adequate disclosure[51](index=51&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[52](index=52&type=chunk) [Board Composition](index=21&type=section&id=Board%20Composition) As of the announcement date, the Board comprises five executive directors, one non-executive director, and three independent non-executive directors, with Mr. Jiang Qinghui as Chairman and Mr. Weng Zudian as CEO - The Board comprises **five executive directors**, **one non-executive director**, and **three independent non-executive directors**[52](index=52&type=chunk) - Mr. Jiang Qinghui serves as Chairman, and Mr. Weng Zudian serves as Chief Executive Officer[52](index=52&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Chaoju Eye Care Holdings Limited 朝聚眼科醫療控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2219） (I) 截至二零二五年六月三十日止六個月的中期業績公告；及 (II) 全球發售所得款項用途的預期時間表更新及所得款項用途的變動 財務及經營摘要 本集團的收益由二零二四年同期的人民幣 734.3 百萬元減少 4.9% 至截至二零 二五年六月三十日止六個月的人民幣 698.3 百 萬 元。 本集團的毛利由二零二四年同期的人民幣 336.0 百萬元減少 11.4% 至截至二 零二五年六月三十日止六個月的人民幣 297.7 百 萬 元。毛 利 率 由 二 零 二 四 年 同期的 45.8% 下降至截至二零二五年六月三十日止六個月的 42.6%。 本 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Suxin Joyful Life Services Co., Ltd. 蘇新美好生活服務股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2152） 截 至2025年6月30日 止 六 個 月 的 中 期 業 績 公 告 | 財 | 務 | 概 | 要 | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

[GEM Characteristics and Disclaimers](index=2&type=section&id=GEM%20Characteristics%20and%20Disclaimers) This report outlines the GEM market's high investment risks for small and medium-sized companies, with the Board of Directors assuming full responsibility for its content - The GEM market, designed for small and medium-sized companies, entails **higher investment risks** and potential for **significant market volatility** with no guaranteed high liquidity[4](index=4&type=chunk)[5](index=5&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for the report's content, accuracy, completeness, and any resulting losses[6](index=6&type=chunk) - The Board of Directors, collectively and individually, assumes **full responsibility** for the accuracy, completeness, and non-misleading nature of the report's information[7](index=7&type=chunk) [INTERIM RESULTS](index=3&type=section&id=INTERIM%20RESULTS) This section presents the unaudited condensed consolidated interim results for the six months ended June 30, 2025, showing a narrowed loss but a net decrease in cash and cash equivalents [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue from continuing operations decreased, but the loss for the period narrowed due to reduced administrative expenses and gains from financial asset disposal Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 34,502 | 38,071 | -9.4% | | Cost of sales | (5,595) | (5,577) | +0.3% | | Other income and gains or losses | 2,596 | 1,474 | +76.1% | | Administrative expenses | (37,123) | (41,272) | -10.1% | | Loss on disposal of an associate | (2,590) | – | N/A | | Gain/(loss) on disposal of financial assets at fair value through profit or loss | 2,314 | (87) | Significant improvement | | Net fair value loss on financial assets at fair value through profit or loss | (2,819) | (3,714) | -24.1% | | Share of results of associates | (6,216) | (9,305) | -33.1% | | Finance costs | (4,362) | (3,157) | +38.2% | | Loss before tax | (19,232) | (23,643) | -18.7% | | Loss for the period | (19,232) | (23,712) | -18.9% | | Basic and diluted loss per share (HK cents) | (0.37) | (0.46) | -19.6% | - Loss for the period significantly narrowed by **18.9%**, primarily due to a **10.1% reduction in administrative expenses** and a shift from loss to gain on financial assets at fair value through profit or loss[13](index=13&type=chunk)[101](index=101&type=chunk) - Revenue from continuing operations decreased by **9.4%** year-on-year, from **38,071 thousand HKD** to **34,502 thousand HKD**[13](index=13&type=chunk)[101](index=101&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and net assets decreased, with a significant reduction in cash and cash equivalents compared to the end of 2024 Financial Position Key Data (As of June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Property, plant and equipment | 172,866 | 167,922 | +2.9% | | Investments in associates | 37,681 | 52,511 | -28.2% | | Total non-current assets | 212,197 | 222,161 | -4.4% | | **Current assets** | | | | | Inventories | 5,771 | 3,712 | +55.5% | | Trade receivables, loan and interest receivables | 45,873 | 41,455 | +10.7% | | Financial assets at fair value through profit or loss | 29,546 | 36,167 | -18.2% | | Cash and cash equivalents | 1,812 | 10,987 | -83.5% | | Total current assets | 139,422 | 147,248 | -5.4% | | **Current liabilities** | | | | | Contract liabilities | 9,002 | 9,076 | -0.8% | | Trade and other payables, accruals and provisions | 32,237 | 33,131 | -2.7% | | Interest-bearing bank and other borrowings | 97,761 | 95,546 | +2.3% | | Total current liabilities | 139,312 | 138,521 | +0.6% | | **Non-current liabilities** | | | | | Interest-bearing bank and other borrowings | 4,627 | 7,545 | -38.7% | | Total non-current liabilities | 4,881 | 7,616 | -35.9% | | Net assets | 207,426 | 223,272 | -7.1% | - Cash and cash equivalents significantly decreased by **83.5%**, from **10,987 thousand HKD** at the end of 2024 to **1,812 thousand HKD**[17](index=17&type=chunk) - The Group's total assets decreased from **369,409 thousand HKD** at the end of 2024 to **351,619 thousand HKD** as of June 30, 2025[32](index=32&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to owners of the Company decreased from January 1, 2025, to June 30, 2025, primarily due to the loss for the period, partially offset by exchange differences Equity Changes Key Data (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Equity at beginning of period (attributable to owners of the Company) | 223,276 | 317,506 | | Loss for the period (attributable to owners of the Company) | (19,236) | (23,672) | | Exchange differences arising from translation of financial statements of overseas subsidiaries | 3,388 | (1,369) | | Fair value loss on financial assets at fair value through other comprehensive income | (2) | (503) | | Equity at end of period (attributable to owners of the Company) | 207,426 | 291,962 | - As of June 30, 2025, total equity attributable to owners of the Company was **207,426 thousand HKD**, a decrease from **223,276 thousand HKD** as of January 1, 2025[20](index=20&type=chunk)[136](index=136&type=chunk) - Exchange differences generated **3,388 thousand HKD** in other comprehensive income during the period, compared to a loss of **1,367 thousand HKD** in the prior corresponding period[14](index=14&type=chunk)[20](index=20&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating cash flow turned to an outflow, investment cash flow turned to an inflow, and financing cash flow was an outflow, leading to a significant net decrease in cash Cash Flow Key Data (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Net cash flows (used in)/from operating activities | (3,460) | 6,361 | Turned from inflow to outflow | | Net cash flows from/(used in) investing activities | 269 | (15,298) | Turned from outflow to inflow | | Net cash flows (used in)/from financing activities | (6,055) | 3,832 | Turned from inflow to outflow | | Net decrease in cash and cash equivalents | (9,246) | (5,105) | Decrease widened | | Cash and cash equivalents at end of period | 1,812 | 1,435 | +26.3% | - Net cash flow from operating activities turned from an inflow of **6,361 thousand HKD** in the prior corresponding period of 2024 to an outflow of **3,460 thousand HKD** in 2025[23](index=23&type=chunk) - Net cash flow from investing activities turned from an outflow of **15,298 thousand HKD** in the prior corresponding period of 2024 to an inflow of **269 thousand HKD** in 2025[23](index=23&type=chunk) [NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=10&type=section&id=NOTES%20TO%20THE%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section details the basis of financial statement preparation, adoption of new HKFRSs, operating segment information, revenue, loss before tax, income tax, dividends, EPS, PPE, financial investments, receivables, contract liabilities, payables, borrowings, convertible loans, share capital, share option scheme, and related party transactions [1. BASIS OF PREPARATION](index=10&type=section&id=1.%20BASIS%20OF%20PREPARATION) The unaudited condensed consolidated financial statements are prepared in accordance with HKFRSs and HKAS 34, with consistent accounting policies as the 2024 annual financial statements - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[24](index=24&type=chunk)[27](index=27&type=chunk) - The principal accounting policies are consistent with those adopted in the audited annual financial statements for the year ended December 31, 2024[24](index=24&type=chunk)[27](index=27&type=chunk) [2. ADOPTION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS](index=10&type=section&id=2.%20ADOPTION%20OF%20NEW%20AND%20REVISED%20HONG%20KONG%20FINANCIAL%20REPORTING%20STANDARDS) The Group adopted new and revised HKFRSs effective from January 1, 2025, with directors expecting no significant impact on the condensed consolidated financial statements - The Group has applied several new and revised Hong Kong Financial Reporting Standards that are mandatorily effective for annual periods beginning on or after January 1, 2025[25](index=25&type=chunk)[28](index=28&type=chunk) - The directors anticipate that the application of these amendments will not have a significant impact on the Group's condensed consolidated financial statements[25](index=25&type=chunk)[28](index=28&type=chunk) [3. OPERATING SEGMENT INFORMATION](index=11&type=section&id=3.%20OPERATING%20SEGMENT%20INFORMATION) The Group operates three continuing business segments: Australian hospitality, money lending, and asset investment, with a network media business terminated after an associate disposal - The Group's continuing operations segments include: (i) Australian hospitality and related services; (ii) money lending business; and (iii) asset investment business[33](index=33&type=chunk)[35](index=35&type=chunk) - The business of providing services through network media was discontinued following the disposal of the associate, Dynamic Indonesia Holdings Limited, on August 30, 2024[31](index=31&type=chunk)[32](index=32&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (thousand HKD) | 2024 Revenue (thousand HKD) | 2025 Results (thousand HKD) | 2024 Results (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Australian hospitality and related services | 31,943 | 32,958 | 1,163 | (1,620) | | Money lending business | 2,559 | 5,113 | (2,756) | 194 | | Asset investment business | – | – | (10,066) | (12,423) | | Total continuing operations | 34,502 | 38,071 | (11,659) | (13,918) | | Discontinued operations (network media) | – | 1 | – | (69) | [4. REVENUE, OTHER INCOME AND GAINS](index=14&type=section&id=4.%20REVENUE,%20OTHER%20INCOME%20AND%20GAINS) Group revenue, primarily from Australian hospitality and loan interest, decreased by 9.4% to 34,502 thousand HKD, while other income and gains significantly increased Revenue and Other Income Composition (For the six months ended June 30) | Revenue Source | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Provision of hospitality and related services | 12,947 | 13,525 | -4.27% | | Sales of food and beverages from hotel business | 18,996 | 19,433 | -2.25% | | **Total revenue from contracts with customers** | **31,943** | **32,958** | **-3.08%** | | Loan interest income | 2,559 | 5,113 | -49.95% | | **Total revenue from continuing operations** | **34,502** | **38,071** | **-9.38%** | | Other income and gains or losses | 2,596 | 1,474 | +76.12% | - Loan interest income significantly decreased by **49.95%** year-on-year, from **5,113 thousand HKD** to **2,559 thousand HKD**[43](index=43&type=chunk) [5. LOSS BEFORE TAX](index=15&type=section&id=5.%20LOSS%20BEFORE%20TAX) Loss before tax for the period narrowed to 19,232 thousand HKD, driven by reduced staff costs, depreciation, and increased gains from financial asset disposal Loss Before Tax Components (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 5,505 | 5,255 | +4.76% | | Cost of services provided | 90 | 322 | -72.05% | | Staff costs | 20,389 | 19,830 | +2.82% | | Depreciation of property, plant and equipment | 3,670 | 4,346 | -15.55% | | Depreciation of right-of-use assets | 703 | 2,062 | -65.91% | | Reversal of impairment loss/(impairment loss) | 61 | (76) | Turned from loss to reversal | | Gain/(loss) on disposal of financial assets at fair value through profit or loss | 2,314 | (87) | Turned from loss to gain | | Fair value loss on financial assets at fair value through profit or loss | (2,819) | (3,714) | -24.10% | | Loss on disposal of an associate | (2,590) | – | N/A | - Staff costs slightly increased by **2.82%** to **20,389 thousand HKD**[45](index=45&type=chunk) - Total depreciation and amortisation decreased by **31.76%**, from **6,408 thousand HKD** in the prior corresponding period of 2024 to **4,373 thousand HKD**[45](index=45&type=chunk) [6. INCOME TAX EXPENSE](index=16&type=section&id=6.%20INCOME%20TAX%20EXPENSE) The Group recorded zero income tax expense for the period, as Hong Kong entities utilized tax losses, and Australian subsidiaries are subject to a 30% tax rate - The Group's entities in Hong Kong had sufficient tax losses brought forward from prior years, resulting in no Hong Kong Profits Tax provision for the current period[47](index=47&type=chunk)[49](index=49&type=chunk) - Australian subsidiaries are subject to a corporate tax rate of **30%**[47](index=47&type=chunk)[49](index=49&type=chunk) [7. INTERIM DIVIDEND](index=16&type=section&id=7.%20INTERIM%20DIVIDEND) The Board of Directors does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[48](index=48&type=chunk)[50](index=50&type=chunk) [8. LOSS PER SHARE](index=17&type=section&id=8.%20LOSS%20PER%20SHARE) Basic and diluted loss per share improved to 0.37 HK cents for continuing and discontinued operations, with no dilutive potential ordinary shares Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | Change | | :--- | :--- | :--- | :--- | | Basic and diluted loss per share from continuing and discontinued operations | (0.37) | (0.46) | -19.6% | | Basic and diluted loss per share from continuing operations | (0.37) | (0.45) | -17.8% | | Basic and diluted loss per share from discontinued operations | – | (0.01) | N/A | - As of June 30, 2025, there were no potential dilutive ordinary shares outstanding, hence basic and diluted loss per share amounts are not adjusted[54](index=54&type=chunk)[56](index=56&type=chunk) [9. MOVEMENTS IN PROPERTY, PLANT AND EQUIPMENT](index=17&type=section&id=9.%20MOVEMENTS%20IN%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) Additions to property, plant and equipment significantly decreased to 341 thousand HKD for the six months ended June 30, 2025 Property, Plant and Equipment Additions (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Additions to property, plant and equipment | 341 | 15,351 | -97.78% | - Additions to property, plant and equipment decreased significantly by **97.78%** year-on-year[55](index=55&type=chunk)[57](index=57&type=chunk) [10. OTHER EQUITY INSTRUMENTS INVESTMENTS](index=18&type=section&id=10.%20OTHER%20EQUITY%20INSTRUMENTS%20INVESTMENTS) The Group's financial asset investments, including listed and unlisted securities, decreased to 29,546 thousand HKD, primarily due to a decline in financial assets at fair value through profit or loss Financial Asset Investment Portfolio (As of June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Financial assets at fair value through other comprehensive income (unlisted equity securities) | 1,522 | 1,426 | +6.73% | | Financial assets at fair value through profit or loss (listed equity securities) | 8,968 | 13,420 | -33.17% | | Financial assets at fair value through profit or loss (unlisted investments) | 14,626 | 15,949 | -8.29% | | Financial assets at fair value through profit or loss (unlisted fund investments) | 5,952 | 6,798 | -12.44% | | **Total financial assets at fair value through profit or loss** | **29,546** | **36,167** | **-18.29%** | - Listed equity investments primarily include Town Health International Medical Group Limited and Currenc Group Inc., whose fair values have decreased[61](index=61&type=chunk) - Unlisted investments primarily represent a **1.89%** equity interest in World Biotech Regenerative Medical Group Limited, which includes a profit guarantee[61](index=61&type=chunk) [11. ACCOUNTS RECEIVABLE, LOAN AND INTEREST RECEIVABLES](index=19&type=section&id=11.%20ACCOUNTS%20RECEIVABLE,%20LOAN%20AND%20INTEREST%20RECEIVABLES) Total trade receivables, loan and interest receivables increased to 45,873 thousand HKD, with a notable rise in trade receivables overdue by over three months Trade Receivables, Loan and Interest Receivables (As of June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Trade receivables within HKFRS 15 scope | 4,283 | 50 | +8466% | | Loan receivables | 41,812 | 43,343 | -3.49% | | Interest receivables on loans | 1,935 | 280 | +591.07% | | Less: Impairment | (2,157) | (2,218) | -2.75% | | **Total** | **45,873** | **41,455** | **+10.66%** | Trade Receivables Ageing Analysis (As of June 30) | Ageing | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Less than 1 month | 56 | 50 | +12.0% | | 1 to 2 months | 1,664 | – | N/A | | 2 to 3 months | 208 | – | N/A | | Over 3 months | 2,355 | – | N/A | - As of June 30, 2025, trade receivables overdue by **over 3 months** amounted to **2,355 thousand HKD**, with no such amount at the end of 2024[65](index=65&type=chunk) - Impairment provision for loan and interest receivables decreased from **2,218 thousand HKD** at the end of 2024 to **2,157 thousand HKD**[70](index=70&type=chunk) [12. CONTRACT LIABILITIES](index=21&type=section&id=12.%20CONTRACT%20LIABILITIES) Contract liabilities, mainly deposits received and deferred income, remained stable at 9,002 thousand HKD as of June 30, 2025 Contract Liabilities (As of June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Deposits received and deferred income | 9,002 | 9,076 | -0.82% | [13. TRADE AND OTHER PAYABLES, ACCRUALS AND PROVISION](index=21&type=section&id=13.%20TRADE%20AND%20OTHER%20PAYABLES,%20ACCRUALS%20AND%20PROVISION) Trade and other payables, accruals, and provisions slightly decreased to 32,237 thousand HKD, with trade payables increasing but all now within three months Trade and Other Payables (As of June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 6,032 | 4,842 | +24.58% | | Accruals and other payables | 26,205 | 28,289 | -7.37% | | **Total** | **32,237** | **33,131** | **-2.70%** | Trade Payables Ageing Analysis (As of June 30) | Ageing | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Within 3 months | 6,032 | 2,088 | +188.9% | | Over 3 months | – | 2,754 | -100% | - As of June 30, 2025, all trade payables were within **3 months**, whereas at the end of 2024, **2,754 thousand HKD** were overdue by over 3 months[76](index=76&type=chunk) [14. INTEREST-BEARING BANK AND OTHER BORROWINGS](index=22&type=section&id=14.%20INTEREST-BEARING%20BANK%20AND%20OTHER%20BORROWINGS) Total interest-bearing borrowings slightly decreased to 102,388 thousand HKD, with a shift towards floating-rate debt and an average effective annual interest rate of 7.6% Interest-Bearing Borrowings Composition (As of June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Interest-bearing bank borrowings | 77,378 | 72,567 | +6.63% | | Other interest-bearing borrowings | 25,010 | 30,524 | -18.06% | | **Total** | **102,388** | **103,091** | **-0.68%** | | Fixed-rate borrowings | 25,164 | 30,740 | -18.14% | | Floating-rate borrowings | 77,224 | 72,351 | +6.74% | | Secured | 77,378 | 72,567 | +6.63% | | Unsecured | 25,010 | 30,524 | -18.06% | Average Effective Annual Interest Rate of Borrowings (As of June 30) | Interest Rate Type | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Fixed-rate borrowings | 9.7% | 10.6% | -0.9% | | Floating-rate borrowings | 6.9% | 7.3% | -0.4% | - Approximately **80%** of the borrowings are denominated in Australian Dollars, and **20%** in Hong Kong Dollars[32](index=32&type=chunk) [15. CONVERTIBLE LOANS AND DERIVATIVE FINANCIAL LIABILITIES](index=23&type=section&id=15.%20CONVERTIBLE%20LOANS%20AND%20DERIVATIVE%20FINANCIAL%20LIABILITIES) As of June 30, 2025, the Group had no remaining convertible loans or derivative financial liabilities, following repayment and reclassification of prior year instruments - As of June 30, 2025, both the liability component and derivative component of convertible loans and derivative financial liabilities were **zero**[87](index=87&type=chunk) - In 2024, approximately **694 thousand HKD** of convertible notes were repaid, and the remaining portion was reclassified as other borrowings and derecognised due to significant amendments (extension of maturity date to March 31, 2026, and lapse of conversion option)[83](index=83&type=chunk)[85](index=85&type=chunk)[189](index=189&type=chunk)[191](index=191&type=chunk) [16. SHARE CAPITAL](index=24&type=section&id=16.%20SHARE%20CAPITAL) As of June 30, 2025, the Company's authorised share capital was 200,000 thousand HKD, with 5,156,035,108 issued and fully paid shares, unchanged from 2024 year-end Share Capital Structure (As of June 30) | Item | Number of Shares | Amount (thousand HKD) | | :--- | :--- | :--- | | Authorised ordinary shares (HKD 0.01 each) | 20,000,000,000 | 200,000 | | Issued and fully paid shares | 5,156,035,108 | 51,560 | - As of June 30, 2025, the issued share capital remained consistent with that at the end of 2024[89](index=89&type=chunk) [17. SHARE OPTION SCHEME](index=24&type=section&id=17.%20SHARE%20OPTION%20SCHEME) The share option scheme, adopted in 2020 to incentivize staff, had no outstanding, granted, exercised, cancelled, or lapsed options during the period - The share option scheme was adopted on June 9, 2020, to incentivise or reward eligible participants for their contributions to the Group, and to recruit and retain high-calibre employees[91](index=91&type=chunk)[92](index=92&type=chunk) - As of June 30, 2025, there were no outstanding, granted, exercised, cancelled, or lapsed share options during the reporting period[93](index=93&type=chunk) [18. RELATED PARTY TRANSACTIONS](index=25&type=section&id=18.%20RELATED%20PARTY%20TRANSACTIONS) The Group engaged in various related party transactions, including rental and medical service payments, loans to associates, interest income and expenses, and administrative service revenue Related Party Transactions (For the six months ended June 30) | Transaction Type | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Rental expenses paid to related companies | 748 | 1,868 | -59.96% | | Medical service costs paid to related companies | 178 | 218 | -18.35% | | Consulting fees paid to associates | – | 320 | -100% | | Loans provided to associates | 7,439 | 7,439 | 0% | | Interest receivable from associates | 505 | 356 | +41.85% | | Interest income from associates | 74 | 74 | 0% | | Loans from related parties | 4,627 | 3,906 | +18.46% | | Interest paid to related parties | 138 | 95 | +45.26% | | Revenue generated from providing administrative and management services | 617 | – | N/A | - Director Mr. Lawrence Tang provided interest-bearing loans, which constitute a connected transaction under the GEM Listing Rules[99](index=99&type=chunk) - Key management personnel remuneration decreased from **1,283 thousand HKD** in the prior corresponding period of 2024 to **557 thousand HKD**[98](index=98&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=27&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section reviews the Group's business and financial performance for the six months ended June 30, 2025, analyzing operations and outlining future strategies amidst global economic challenges [Business and Financial Review](index=27&type=section&id=Business%20and%20Financial%20Review) The Group's loss for the period narrowed by 18.9% due to reduced administrative expenses and improved financial asset performance, despite a revenue decline and associate disposal loss - The Group's loss for the period decreased by **18.9%**, primarily due to reduced administrative expenses, a shift from loss to gain on disposal of financial assets at fair value through profit or loss, and a decrease in share of losses of associates[101](index=101&type=chunk)[105](index=105&type=chunk) - Revenue decreased by **9.4%** from **38,071 thousand HKD** in the prior corresponding period of 2024 to **34,502 thousand HKD**[101](index=101&type=chunk)[105](index=105&type=chunk) - A loss of **2,590 thousand HKD** was incurred from the disposal of an associate in January 2025, with no such item in the prior corresponding period of 2024[101](index=101&type=chunk)[105](index=105&type=chunk) [Provision of Hospitality and Related Services in Australia](index=27&type=section&id=Provision%20of%20Hospitality%20and%20Related%20Services%20in%20Australia) Revenue from Australian hospitality services decreased by 3% to 31,943 thousand HKD, with occupancy rates falling, influenced by global economic challenges and slow international tourism recovery - Hospitality business revenue decreased by **3%** to **31,943 thousand HKD**, primarily impacted by global economic challenges and slow recovery of international tourism[108](index=108&type=chunk)[111](index=111&type=chunk) - Balgownie's occupancy rate decreased from **74%** in the prior corresponding period of 2024 to **69%** in 2025[109](index=109&type=chunk)[112](index=112&type=chunk) - Balgownie completed renovation works in October 2024 and launched a "Wine Club" in April 2023, which had approximately **1,300 members** as of June 30, 2025[107](index=107&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) [Provision of services through network media](index=29&type=section&id=Provision%20of%20services%20through%20network%20media) The network media services business segment was discontinued after the disposal of an associate, resulting in no revenue recorded for the reporting period - The Group has discontinued the business segment of providing services through network media, and no revenue was recorded for the reporting period[113](index=113&type=chunk)[117](index=117&type=chunk) [Money Lending Business](index=29&type=section&id=Money%20Lending%20Business) Interest income from the Hong Kong money lending business decreased by 49.95% to 2,559 thousand HKD, primarily due to fewer loans disbursed, with the Group maintaining a cautious approach - Interest income from the money lending business was **2,559 thousand HKD**, a year-on-year decrease of **49.95%**, mainly due to fewer loans disbursed during the period[114](index=114&type=chunk)[118](index=118&type=chunk) - The Group conducts its money lending business in Hong Kong through its wholly-owned subsidiary, Billion Finance Limited, which holds a money lender's license[114](index=114&type=chunk)[118](index=118&type=chunk) [Assets Investments Business](index=29&type=section&id=Assets%20Investments%20Business) The asset investment business recorded fair value losses on financial assets at fair value through profit or loss and other comprehensive income, alongside a loss from the disposal of an associate - Financial assets at fair value through profit or loss recorded a fair value loss of **2,819 thousand HKD**, primarily due to a decrease in the fair value of listed equity securities[115](index=115&type=chunk)[119](index=119&type=chunk) - Financial assets at fair value through other comprehensive income recorded a fair value loss of **2 thousand HKD**, mainly due to a decrease in the fair value of unlisted equity securities[115](index=115&type=chunk)[119](index=119&type=chunk) - In January 2025, the Group disposed of an associate (EFL held a **48.33%** equity interest) for **6,025 thousand HKD**, recording a loss of **2,509 thousand HKD**[116](index=116&type=chunk)[119](index=119&type=chunk) [Prospects of the Group's significant investments in associate](index=30&type=section&id=Prospects%20of%20the%20Group's%20significant%20investments%20in%20associate) The Group's 5.1% investment in Luck Key Investment Limited, engaged in medical diagnostic services, saw revenue growth but a loss attributable to shareholders - The Group holds approximately **48.33%** equity interest in Luck Key Investment Limited, with an investment cost of approximately **56,511 thousand HKD** and a carrying value of approximately **17,830 thousand HKD**, representing **5.1%** of the Group's total assets[120](index=120&type=chunk)[122](index=122&type=chunk) Luck Key Investment Limited Performance (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 98,630 | 94,879 | | Loss attributable to shareholders | (10,576) | (19,821) | - The Luck Key Group primarily engages in medical diagnostic and health check services, operating **ten health check centres** and **two laboratories** in Hong Kong[121](index=121&type=chunk)[123](index=123&type=chunk) [PROSPECTS](index=31&type=section&id=PROSPECTS) The global economic outlook faces significant downside risks from geopolitical tensions and trade fragmentation, prompting the Group to focus on leveraging its strengths to develop existing businesses - The global economic outlook faces downside risks dominated by geopolitical tensions, trade fragmentation, economic turmoil, the Russia-Ukraine war, the Israel-Hamas conflict, and tariff wars[127](index=127&type=chunk)[131](index=131&type=chunk) - The Group will continue to formulate and implement business plans and strategies, leveraging its business model, competitiveness, and strengths to develop, maintain, and strengthen existing businesses to create shareholder value and investment returns[128](index=128&type=chunk)[131](index=131&type=chunk) [FINANCIAL RESOURCES AND LIQUIDITY](index=32&type=section&id=FINANCIAL%20RESOURCES%20AND%20LIQUIDITY) As of June 30, 2025, total assets decreased, cash and cash equivalents significantly reduced, and borrowings remained substantial, leading to increased gearing and net debt to equity ratios Financial Resources and Liquidity Key Data (As of June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total assets | 351,619 | 369,409 | -4.81% | | Cash and cash equivalents | 1,812 | 10,987 | -83.50% | | Borrowings repayable within one year (or on demand) | 97,761 | 95,546 | +2.32% | | Total borrowings | 102,388 | 103,091 | -0.68% | | Average annual interest rate | 7.6% | 8.3% | -0.7% | | Gearing ratio | 0.41 times | 0.40 times | +0.01 | | Net debt to equity ratio | 0.64 times | 0.56 times | +0.08 | - Cash and cash equivalents significantly decreased by **83.5%**, with approximately **77%** denominated in Australian Dollars and **20%** in Hong Kong Dollars[32](index=32&type=chunk)[132](index=132&type=chunk)[134](index=134&type=chunk) - The Group's gearing ratio and net debt to equity ratio both increased, indicating a slight increase in leverage[133](index=133&type=chunk)[135](index=135&type=chunk) [CAPITAL STRUCTURE](index=33&type=section&id=CAPITAL%20STRUCTURE) As of June 30, 2025, shareholders' equity was 207,426 thousand HKD, with total borrowings of 102,388 thousand HKD, a significant portion due within one year, and some loans subject to immediate repayment clauses - As of June 30, 2025, the Group's shareholders' equity was **207,426 thousand HKD**[136](index=136&type=chunk)[138](index=138&type=chunk) Borrowing Structure and Interest Rates (As of June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Fixed-rate borrowings | 25,164 | 30,740 | | Floating-rate borrowings | 77,224 | 72,351 | | **Total borrowings** | **102,388** | **103,091** | | Secured borrowings | 77,378 | 72,567 | | Unsecured borrowings | 25,010 | 30,524 | | Repayable within one year or on demand | 97,761 | 95,546 | | Repayable in the second year | 4,627 | 7,545 | | **Average effective interest rate** | | | | Fixed-rate | 9.7% | 10.6% | | Floating-rate | 6.9% | 7.3% | - Certain loan agreements contain clauses allowing lenders to demand immediate repayment at any time, regardless of the Group's compliance with covenants[137](index=137&type=chunk)[138](index=138&type=chunk) [OTHER FINANCIAL INFORMATION](index=34&type=section&id=FOREIGN%20EXCHANGE) This section covers foreign exchange risk management, asset pledges for borrowings, and capital commitments, noting no derivative hedging, pledged assets of 79,557 thousand HKD, and no significant capital commitments - The Group's major revenue and costs are denominated in Hong Kong Dollars and Australian Dollars, and no derivative products were invested for hedging during the reporting period[144](index=144&type=chunk)[147](index=147&type=chunk) - As of June 30, 2025, certain of the Group's borrowing facilities were secured by freehold land, buildings, and motor vehicles with a carrying value of approximately **79,557 thousand HKD**[145](index=145&type=chunk)[148](index=148&type=chunk) - As of June 30, 2025, the Group had no significant capital commitments contracted but not provided for[146](index=146&type=chunk)[149](index=149&type=chunk) [LEGAL AND COMPLIANCE MATTERS](index=35&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECURITIES) This section covers the Company's listed securities transactions, significant legal proceedings (Convoy and Chu lawsuits), and contingent liabilities, with no listed securities transactions and an inability to reliably assess potential liabilities from lawsuits [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=35&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECURITIES) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[150](index=150&type=chunk)[152](index=152&type=chunk) [LITIGATION AND CLAIMS](index=35&type=section&id=LITIGATION%20AND%20CLAIMS) The Group is involved in two significant lawsuits, the Convoy and Chu lawsuits, concerning share allocations, financial arrangements, and share dilution, with potential liabilities currently unassessable - The Group is involved in the Convoy Litigation initiated by Convoy Global Holdings Limited, seeking to rescind Convoy share allotments, void financial arrangements, and claim damages[151](index=151&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[157](index=157&type=chunk) - The Group is involved in the Chu Litigation initiated by Ms. Chu Hiu Yin, seeking to declare the placement of Convoy shares invalid and claim damages for share dilution[160](index=160&type=chunk)[162](index=162&type=chunk) - The Group has sought legal advice and believes that the potential liabilities from these legal proceedings cannot be reliably estimated at present, and thus no provision has been made[164](index=164&type=chunk)[169](index=169&type=chunk)[173](index=173&type=chunk) [CONTINGENT LIABILITIES](index=38&type=section&id=CONTINGENT%20LIABILITIES) As of June 30, 2025, the Group had no significant contingent liabilities other than those disclosed in the litigation and claims section - As of June 30, 2025, the Group had no other significant contingent liabilities apart from the disclosed litigation[165](index=165&type=chunk)[170](index=170&type=chunk) [HUMAN RESOURCES AND CORPORATE GOVERNANCE](index=38&type=section&id=EMPLOYEES'%20REMUNERATION%20POLICIES) This section details the Group's employee remuneration policies, directors' and chief executive's interests, substantial shareholders' interests, convertible loan issuance, share option scheme, director information changes, competing business interests, securities transaction code, and audit committee operations [EMPLOYEES' REMUNERATION POLICIES](index=38&type=section&id=EMPLOYEES'%20REMUNERATION%20POLICIES) The Group employed approximately 140 staff with total staff costs of 20,389 thousand HKD, focusing on employee development and market-based remuneration Employee Count and Costs (As of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Number of employees | 140 | 119 | | Staff costs (thousand HKD) | 20,389 | 19,831 | - The Group actively provides career development opportunities for its employees through adequate and regular training to enhance their capabilities[167](index=167&type=chunk)[171](index=171&type=chunk) - Directors' remuneration is determined by the Board based on the recommendations of the Remuneration Committee, considering their expertise, qualifications, and abilities[174](index=174&type=chunk)[179](index=179&type=chunk) [DIRECTORS' AND CHIEF EXECUTIVE'S INTERESTS AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY](index=39&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20THE%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES%20OF%20THE%20COMPANY) As of June 30, 2025, no directors or the chief executive held any disclosable interests or short positions in the Company's shares, underlying shares, or debentures - As of June 30, 2025, none of the Company's directors or chief executive had any disclosable interests or short positions in the shares, underlying shares, and debentures of the Company[178](index=178&type=chunk)[182](index=182&type=chunk) [SUBSTANTIAL SHAREHOLDERS' INTERESTS](index=40&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS) As of June 30, 2025, Mr. Ng Ting Kit and his wholly-owned Deep Shine Holdings Limited were substantial shareholders, holding 9.64% and 5.06% long positions respectively Substantial Shareholders' Shareholdings (As of June 30) | Shareholder Name/Entity | Capacity | Number of Shares Involved | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr. Ng Ting Kit | Beneficial owner | 497,180,000 | 9.64% | | Mr. Ng Ting Kit | Interest in controlled corporation | 260,800,000 | 5.06% | | Deep Shine Holdings Limited | Beneficial owner | 260,800,000 | 5.06% | - Mr. Ng Ting Kit indirectly holds shares in the Company through his wholly-owned Deep Shine Holdings Limited[185](index=185&type=chunk) [ISSUE OF CONVERTIBLE LOANS](index=41&type=section&id=ISSUE%20OF%20CONVERTIBLE%20LOANS) EFL issued convertible loan notes totaling 7,600 thousand HKD in 2021 and 2022, which were partially repaid and subsequently reclassified as other borrowings due to significant amendments - EFL issued convertible loan notes totaling **7,600 thousand HKD** in December 2021 and January 2022, intended for the Group's general working capital[187](index=187&type=chunk)[190](index=190&type=chunk) - In 2024, approximately **694 thousand HKD** of convertible notes were repaid, and the remaining portion was reclassified as other borrowings and derecognised due to significant amendments (extension of maturity date to March 31, 2026, and lapse of conversion option)[189](index=189&type=chunk)[191](index=191&type=chunk) [SHARE OPTION SCHEME DETAILS](index=42&type=section&id=SHARE%20OPTION%20SCHEME) The share option scheme, designed for talent retention and incentive, allows for options up to 1% of issued shares per participant, with no options granted during the period - The share option scheme aims to incentivise and reward eligible participants, and to recruit and retain high-calibre employees[192](index=192&type=chunk)[196](index=196&type=chunk) - The maximum number of shares that may be granted to any one participant in any 12-month period shall not exceed **1%** of the total number of issued and issuable shares at that time[193](index=193&type=chunk)[197](index=197&type=chunk) - As of June 30, 2025, the number of options that could be granted under the existing scheme limit was **533,623,510 shares** (approximately **10.35%** of the issued share capital), but no options were granted during the reporting period[199](index=199&type=chunk)[206](index=206&type=chunk) [CHANGES IN INFORMATION OF DIRECTORS AND COMPETING BUSINESS INTERESTS](index=43&type=section&id=CHANGES%20IN%20INFORMATION%20OF%20DIRECTORS) Independent Non-executive Director Mr. Tong Hin Sum transitioned to a Non-executive Director role at another company, and Non-executive Director Mr. Ng Ting Ho holds directorships in competing money lending businesses - Independent Non-executive Director Mr. Tong Hin Sum was re-designated as a Non-executive Director of Profit Point Holdings Limited with effect from June 30, 2025[202](index=202&type=chunk)[207](index=207&type=chunk) - Non-executive Director Mr. Ng Ting Ho holds directorships in other companies engaged in money lending businesses, which may compete with the Group's business[204](index=204&type=chunk)[208](index=208&type=chunk) [CORPORATE GOVERNANCE](index=44&type=section&id=CODE%20OF%20CONDUCT%20REGARDING%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The Company adheres to a code for directors' securities transactions and corporate governance practices, with the Audit Committee reviewing interim results, despite the Chairman and CEO roles not being segregated - The Company has adopted a code of conduct regarding securities transactions by directors and has confirmed with all directors their compliance with the required standards of dealing during the reporting period[209](index=209&type=chunk)[213](index=213&type=chunk) - The Company complies with the Corporate Governance Code, but the roles of Chairman and Chief Executive are not segregated, and the Chief Executive position has been vacant since January 1, 2025[211](index=211&type=chunk)[214](index=214&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the interim results report and found it to be in compliance with applicable accounting standards and the GEM Listing Rules[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)

Financial Performance - For the six months ended June 30, 2025, the company reported a revenue of HKD 57,377,000, a decrease of 87.4% compared to HKD 455,016,000 for the same period in 2024[4] - The gross loss for the period was HKD 7,169,000, compared to a gross loss of HKD 114,777,000 in the previous year, indicating an improvement[4] - The operating loss for the six months was HKD 103,784,000, significantly reduced from HKD 1,486,516,000 in the same period last year[4] - The net loss for the period was HKD 241,770,000, compared to a net loss of HKD 1,569,918,000 in the previous year, showing a substantial decrease in losses[4] - The company reported a total comprehensive loss of HKD 240,173,000 for the period, compared to HKD 1,573,250,000 in the previous year[5] - The basic and diluted loss per share for the period was HKD 153.28, a significant improvement from HKD 1,112.29 in the same period last year[5] Assets and Liabilities - The company's total assets less current liabilities showed a negative value of HKD 35,149,000 as of June 30, 2025, compared to a positive value of HKD 221,310,000 at the end of 2024[6] - The company's current liabilities exceeded current assets, resulting in a net current liability of HKD 744,418,000 as of June 30, 2025[6] - The company’s non-current assets decreased from HKD 752,236,000 at the end of 2024 to HKD 709,269,000 as of June 30, 2025[6] - The company’s total liabilities amounted to HKD 7,306,536,000 as of June 30, 2025, compared to HKD 7,025,531,000 at the end of 2024[6] - The group reported a total of 2,750,607,000 HKD in total liabilities as of June 30, 2025, compared to 2,629,010,000 HKD at the end of 2024[32] Cash Flow and Liquidity - Cash and cash equivalents were only approximately HKD 13,870,000, raising significant doubts about the group's ability to continue as a going concern[12] - The group has developed cash flow forecasts covering the next twelve months and plans to mitigate liquidity pressures and improve financial conditions[12] - The group is actively negotiating with lenders regarding potential settlement arrangements or deferral of repayment dates[14] - The group plans to accelerate the pre-sale of major property development projects during the cash flow forecast period[14] - The group has taken measures to manage the current operating environment, including cost control to minimize cash outflows[14] Revenue and Segment Performance - Revenue for the property development and investment segment was HKD 57,377,000, with a segment loss of HKD 72,575,000 for the six months ended June 30, 2025[22] - The group experienced a significant loss in the previous year, with total revenue of HKD 455,016,000 and a loss before tax of HKD 1,601,762,000 for the six months ended June 30, 2024[23] Investment Properties - The group has not sold any investment properties during the reporting period, while it recorded a loss of 56,413,000 HKD in fair value for investment properties[27] - The group incurred expenses of approximately 8,077,000 HKD for investment properties, with a fair value loss of about 56,413,000 HKD, compared to a fair value loss of 196,779,000 HKD in the previous year[27] Economic Context - In the first half of 2025, the GDP of China grew by 5.4% year-on-year, indicating resilience and vitality in economic recovery[35] - The overall property development performance in the first half of 2025 was significantly below the same period last year, with ongoing downward pressure and a strong market wait-and-see sentiment[38] Corporate Governance - The board has confirmed compliance with the standards of the code of conduct for securities trading throughout the period[57] - The audit committee has reviewed and approved the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[63] - The group has established an audit committee to oversee financial reporting processes and risk management systems[62] - The board is committed to maintaining high standards of corporate governance and has adhered to applicable codes throughout the period[58] Employee and Operational Changes - The group has 53 full-time employees as of June 30, 2025, an increase from 46 employees as of December 31, 2024[52] - The company is focusing on "ensuring project delivery" as a core operational strategy, with significant efforts to enhance project management and execution capabilities[39] - The company has completed the construction of several residential and commercial projects, with plans for openings in September 2025[39] Future Outlook - The company aims to maintain a cautious yet proactive approach in 2025, assessing various factors affecting the future and preparing for challenges[41] - The company is actively communicating with lenders and creditors to achieve a sustainable capital structure and effectively address liquidity issues[40] - The real estate market is expected to see a narrowing decline in sales area in 2025, supported by government policies aimed at stabilizing the market and promoting demand[40]

2025 中期報告 INTERIM REPORT 2025 中期報告 重要提示 無 六、前瞻性陳述的風險聲明 √ 適用 □ 不適用 本半年度報告內容中涉及未來計劃等前瞻性陳述因存在不確定性，不構成公司對投資者的實質性承諾，請各位投資者注意 投資風險。 七、是否存在被控股股東及其他關聯方非經營性佔用資金情況 否 八、是否存在違反規定決策程序對外提供擔保的情況 否 九、是否存在半數以上董事無法保證公司所披露半年度報告的真實性、準確性和完整性 否 1 2025年半年度報告 一、本公司董事會、監事會及董事、監事、高級管理人員保證半年度報告內容的真實性、準確性、完整 性，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 二、公司全體董事出席董事會會議。 三、本半年度報告未經審計。 四、公司負責人李俊杰先生、主管會計工作負責人馮永梅女士及會計機構負責人（會計主管人員）楊月先 生聲明：保證半年度報告中財務報告的真實、準確、完整。 五、董事會決議通過的本報告期利潤分配預案或公積金轉增股本預案 重要提示 十、重大風險提示 1、 市場競爭加劇風險 儘管氣體儲運市場整體呈現穩中有升的態勢，但行業競爭卻日益加劇。未 ...

[Company Information and Declarations](index=1&type=section&id=Company%20Information%20and%20Declarations) This section outlines the company's foundational information, including disclaimers for the GEM market and the composition of its Board of Directors [Disclaimer and GEM Characteristics](index=1&type=section&id=Disclaimer%20and%20GEM%20Characteristics) The report includes GEM market disclaimers, emphasizing higher investment risks for SMEs, with the Board confirming information accuracy - The GEM market targets small and medium-sized companies, entailing higher investment risks and potential for significant market volatility and liquidity risks for securities[9](index=9&type=chunk)[10](index=10&type=chunk)[14](index=14&type=chunk) - The Board confirms that the information contained in this report is accurate and complete in all material respects, without misleading or fraudulent content[4](index=4&type=chunk)[12](index=12&type=chunk)[15](index=15&type=chunk) [Company Overview and Board of Directors](index=1&type=section&id=Company%20Overview%20and%20Board%20of%20Directors) Heng Tai Yue Group Holdings Limited announced unaudited interim results for H1 2025, with a Board structure including executive and independent non-executive directors - Heng Tai Yue Group Holdings Limited announced its unaudited results for the six months ended June 30, 2025[3](index=3&type=chunk) - The Board of Directors includes Mr. Ng Ting Ho as Chairman and Non-executive Director, Mr. Fong Chak Kiu as Executive Director, and four Independent Non-executive Directors[4](index=4&type=chunk) [Financial Performance](index=4&type=section&id=Financial%20Performance) This section presents the Group's condensed consolidated financial statements, including profit or loss, financial position, equity changes, and cash flows for the reporting period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's loss from continuing operations narrowed to **HK$19,232 thousand** for H1 2025, with total comprehensive loss significantly reduced Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 34,502 | 38,071 | ↓ 9.4% | | Other income and gains or losses | 2,596 | 1,474 | ↑ 76.1% | | Administrative expenses | (37,123) | (41,272) | ↓ 10.1% | | Gain/(loss) on disposal of financial assets at FVTPL | 2,314 | (87) | Turned from loss to gain | | Net fair value loss on financial assets at FVTPL | (2,819) | (3,714) | ↓ 24.1% | | Share of results of associates | (6,216) | (9,305) | ↓ 33.1% | | Finance costs | (4,362) | (3,157) | ↑ 38.2% | | Loss before tax | (19,232) | (23,643) | ↓ 18.7% | | Loss for the period from continuing operations | (19,232) | (23,643) | ↓ 18.7% | | Loss for the period from discontinued operations | – | (69) | Discontinued | | Loss for the period | (19,232) | (23,712) | ↓ 18.9% | | Total comprehensive loss for the period | (15,846) | (25,582) | ↓ 38.0% | | Basic and diluted loss per share (HK cents) | (0.37) | (0.46) | ↓ 19.6% | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and net assets decreased, with net assets falling from **HK$223,272 thousand** to **HK$207,426 thousand** Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Property, plant and equipment | 172,866 | 167,922 | ↑ 2.9% | | Investments in associates | 37,681 | 52,511 | ↓ 28.2% | | Total non-current assets | 212,197 | 222,161 | ↓ 4.48% | | Inventories | 5,771 | 3,712 | ↑ 55.5% | | Trade receivables, loan receivables and interest | 45,873 | 41,455 | ↑ 10.7% | | Financial assets at FVTPL | 29,546 | 36,167 | ↓ 18.2% | | Cash and cash equivalents | 1,812 | 10,987 | ↓ 83.5% | | Total current assets | 139,422 | 147,248 | ↓ 5.45% | | Total current liabilities | 139,312 | 138,521 | ↑ 0.57% | | Net current assets | 110 | 8,727 | ↓ 98.7% | | Net assets | 207,426 | 223,272 | ↓ 7.0% | | Share capital | 51,560 | 51,560 | No change | | Reserves | 155,866 | 171,716 | ↓ 9.1% | | Equity attributable to owners of the Company | 207,426 | 223,276 | ↓ 7.1% | [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to owners of the Company decreased to **HK$207,426 thousand** for H1 2025, mainly due to loss for the period and exchange differences Summary of Changes in Equity Attributable to Owners of the Company | Indicator | June 30, 2025 (HK$ thousand) | January 1, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Share capital | 51,560 | 51,560 | No change | | Reserves | 155,866 | 171,716 | ↓ 9.2% | | Total equity attributable to owners of the Company | 207,426 | 223,276 | ↓ 7.1% | | Loss for the period | (19,236) | (23,672) | ↓ 18.8% | | Exchange differences | 3,388 | (1,369) | Turned from negative to positive | | Fair value loss on financial assets at FVTOCI | (2) | (503) | ↓ 99.6% | - As of June 30, 2025, total equity attributable to owners of the Company was **HK$207,426 thousand**, a decrease from **HK$223,276 thousand** as of December 31, 2024[25](index=25&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Operating activities shifted to a **HK$3,460 thousand** cash outflow for H1 2025, with investing activities turning to inflow and increased financing outflow, resulting in a net decrease in cash Summary of Condensed Consolidated Statement of Cash Flows | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net cash flows (used in)/from operating activities | (3,460) | 6,361 | Shifted from inflow to outflow | | Net cash flows from/(used in) investing activities | 269 | (15,298) | Shifted from outflow to inflow | | Net cash flows (used in)/from financing activities | (6,055) | 3,832 | Shifted from inflow to outflow | | Net decrease in cash and cash equivalents | (9,246) | (5,105) | Decrease widened | | Cash and cash equivalents at end of period | 1,812 | 1,435 | ↑ 26.3% | [Notes to the Financial Statements](index=11&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the basis of preparation, accounting policies, segment information, and specific financial asset and liability disclosures [Basis of Preparation and Accounting Policies](index=11&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) Unaudited condensed consolidated financial statements are prepared under HKFRSs and HKAS 34, consistent with 2024 audited policies and GEM Listing Rules - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and Hong Kong Accounting Standard 34 'Interim Financial Reporting'[29](index=29&type=chunk)[32](index=32&type=chunk) - The principal accounting policies are consistent with those adopted in the audited annual financial statements for the year ended December 31, 2024[29](index=29&type=chunk)[32](index=32&type=chunk) [Adoption of New and Revised HKFRSs](index=11&type=section&id=Adoption%20of%20New%20and%20Revised%20HKFRSs) The Group adopted new and revised HKFRSs effective January 1, 2025, with no significant impact expected on the condensed consolidated financial statements - The Group has applied a number of new and revised HKFRSs that are mandatorily effective for annual periods beginning on or after January 1, 2025[30](index=30&type=chunk)[33](index=33&type=chunk) - The Directors do not expect the above amendments to have a significant impact on the Group's condensed consolidated financial statements[30](index=30&type=chunk)[33](index=33&type=chunk) [Operating Segment Information](index=12&type=section&id=Operating%20Segment%20Information) The Group operates three continuing segments: Australia hotel, money lending, and asset investment, with the online media segment discontinued after an associate disposal - The Group has three continuing operating business segments: Australia hotel and related services, money lending business, and asset investment business[38](index=38&type=chunk)[40](index=40&type=chunk) - The 'provision of services via online media' segment was discontinued after the disposal of an associate on August 30, 2024[36](index=36&type=chunk)[37](index=37&type=chunk) Summary of Segment Results (For the six months ended June 30, 2025) | Segment | Revenue and other income (HK$ thousand) | Segment profit/(loss) (HK$ thousand) | | :--- | :--- | :--- | | Australia hotel and related services | 31,943 | 1,163 | | Money lending business | 2,559 | (2,756) | | Asset investment business | – | (10,066) | | Discontinued operations | – | – | | **Total** | **34,502** | **(11,659)** | Summary of Segment Results (For the six months ended June 30, 2024) | Segment | Revenue and other income (HK$ thousand) | Segment profit/(loss) (HK$ thousand) | | :--- | :--- | :--- | | Australia hotel and related services | 32,958 | (1,620) | | Money lending business | 5,113 | 194 | | Asset investment business | – | (12,423) | | Discontinued operations | 1 | (69) | | **Total** | **38,072** | **(13,918)** | [Revenue, Other Income and Gains](index=15&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) Group revenue, primarily from Australia hotel and money lending, decreased by **9.4%** to **HK$34,502 thousand** for H1 2025, while other income and gains significantly increased - The Group's principal activities include: (i) provision of hotel and related services in Australia; (ii) money lending business; and (iii) asset investment business[46](index=46&type=chunk)[47](index=47&type=chunk) Analysis of Revenue, Other Income and Gains | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Provision of hotel and related services | 12,947 | 13,525 | ↓ 4.27% | | Sales of food and beverages from hotel operations | 18,996 | 19,433 | ↓ 2.25% | | Interest income from loan receivables | 2,559 | 5,113 | ↓ 49.95% | | **Total Revenue** | **34,502** | **38,071** | **↓ 9.38%** | | Interest income (others) | 610 | 4 | ↑ 15150% | | Other income | 1,986 | 1,470 | ↑ 35.1% | | **Total other income and gains or losses** | **2,596** | **1,474** | **↑ 76.12%** | [Loss Before Tax](index=16&type=section&id=Loss%20Before%20Tax) Loss before tax narrowed to **HK$19,232 thousand** for H1 2025, driven by reduced administrative expenses, increased financial asset disposal gains, and narrower associate losses Components of Loss Before Tax | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Cost of sales | 5,595 | 5,577 | ↑ 0.32% | | Staff costs | 20,389 | 19,830 | ↑ 2.82% | | Depreciation and amortisation | 4,373 | 6,408 | ↓ 31.8% | | Reversal of impairment losses/(impairment losses) | 61 | (76) | Turned from loss to gain | | Gain/(loss) on disposal of financial assets at FVTPL | 2,314 | (87) | Turned from loss to gain | | Fair value loss on financial assets at FVTPL | (2,819) | (3,714) | ↓ 24.1% | | Loss on disposal of an associate | (2,590) | – | New loss incurred | - The narrowing of loss before tax was primarily due to reduced administrative expenses, increased gains from financial asset disposals, and a narrower share of losses from associates[105](index=105&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) The Group had no income tax expense for H1 2025, with Hong Kong entities offsetting profits with tax losses and Australian entities taxed at **30%** - No provision for Hong Kong Profits Tax was made for the period, as Hong Kong entities had sufficient tax losses brought forward from prior years to offset profits generated during the period[52](index=52&type=chunk)[54](index=54&type=chunk) - Australian subsidiaries are subject to Australian corporate income tax at a rate of **30%**[52](index=52&type=chunk)[54](index=54&type=chunk) [Interim Dividend](index=17&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for H1 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[53](index=53&type=chunk)[55](index=55&type=chunk) [Loss Per Share](index=18&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share improved to **0.37 HK cents** for H1 2025, with no potential dilutive ordinary shares outstanding Loss Per Share | Indicator | For the six months ended June 30, 2025 (HK cents) | For the six months ended June 30, 2024 (HK cents) | Change | | :--- | :--- | :--- | :--- | | Basic and diluted loss per share from continuing and discontinued operations | (0.37) | (0.46) | ↓ 19.6% | | Basic and diluted loss per share from continuing operations | (0.37) | (0.45) | ↓ 17.8% | | Basic and diluted loss per share from discontinued operations | – | (0.01) | Discontinued | | Weighted average number of ordinary shares in issue | 5,156,035,108 | 5,156,035,108 | No change | - For the six months ended June 30, 2025, there were no potential dilutive ordinary shares in issue, thus the basic and diluted loss per share amounts are identical[59](index=59&type=chunk)[61](index=61&type=chunk) [Movements in Property, Plant and Equipment](index=18&type=section&id=Movements%20in%20Property%2C%20Plant%20and%20Equipment) Additions to property, plant and equipment significantly decreased to approximately **HK$341 thousand** for H1 2025 Additions to Property, Plant and Equipment | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Additions to property, plant and equipment | 341 | 15,351 | ↓ 97.8% | - For the six months ended June 30, 2025, additions to property, plant and equipment amounted to approximately **HK$341,000**[60](index=60&type=chunk)[62](index=62&type=chunk) [Financial Assets](index=19&type=section&id=Financial%20Assets) The Group's financial assets include FVTOCI (non-listed equity) and FVTPL (listed shares, unlisted investments, and funds) Composition of Financial Assets | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Financial assets at FVTOCI (unlisted equity securities) | 1,522 | 1,426 | ↑ 6.7% | | Total financial assets at FVTPL | 29,546 | 36,167 | ↓ 18.2% | | - Listed shares | 8,968 | 13,420 | ↓ 33.2% | | - Unlisted investments | 14,626 | 15,949 | ↓ 8.3% | | - Unlisted investment funds | 5,952 | 6,798 | ↓ 12.5% | - Listed shares within financial assets at FVTPL primarily consist of investments in Convoy Global Holdings Limited and Currenc Group Inc[65](index=65&type=chunk) - Unlisted investments primarily represent a **1.89%** equity interest in Global Biotech Regenerative Medical Group Limited[65](index=65&type=chunk) - The Group invests as a limited partner in the private equity fund Kingkey Investment Fund SPC – KKDF Selected Investment Fund SP[65](index=65&type=chunk) [Trade Receivables, Loan Receivables and Interest](index=20&type=section&id=Trade%20Receivables%2C%20Loan%20Receivables%20and%20Interest) Trade receivables significantly increased to **HK$4,283 thousand** as of June 30, 2025, with loan receivables and interest slightly up, and impairment analysis conducted regularly Trade Receivables, Loan Receivables and Interest | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables within the scope of HKFRS 15 | 4,283 | 50 | ↑ 8466% | | Loan receivables | 41,812 | 43,343 | ↓ 3.5% | | Interest receivables from loan receivables | 1,935 | 280 | ↑ 591% | | Less: Impairment | (2,157) | (2,218) | ↓ 2.7% | | **Total loan receivables and interest** | **41,590** | **41,405** | **↑ 0.45%** | | **Total** | **45,873** | **41,455** | **↑ 10.7%** | Ageing Analysis of Trade Receivables (Based on invoice date) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Less than 1 month | 56 | 50 | ↑ 12% | | 1 to 2 months | 1,664 | – | Newly added | | 2 to 3 months | 208 | – | Newly added | | Over 3 months | 2,355 | – | Newly added | | **Total** | **4,283** | **50** | **↑ 8466%** | Ageing Analysis of Loan Receivables and Interest (Based on contractual maturity date) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Not yet overdue | 25,398 | 26,122 | ↓ 2.8% | | Over 3 months | 16,192 | 15,283 | ↑ 5.9% | | **Total** | **41,590** | **41,405** | **↑ 0.45%** | - The credit period for trade receivables ranges from **30 to 180 days**, and the Group regularly assesses customer credit risk and performs impairment analysis[67](index=67&type=chunk)[68](index=68&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) [Contract Liabilities](index=22&type=section&id=Contract%20Liabilities) Contract liabilities, mainly deposits and deferred income, totaled **HK$9,002 thousand** as of June 30, 2025, remaining largely consistent with prior period Contract Liabilities | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Deposits received and deferred income | 9,002 | 9,076 | ↓ 0.8% | [Trade and Other Payables, Accruals and Provisions](index=22&type=section&id=Trade%20and%20Other%20Payables%2C%20Accruals%20and%20Provisions) Total trade and other payables, accruals, and provisions slightly decreased to **HK$32,237 thousand** as of June 30, 2025, with trade payables increasing Trade and Other Payables, Accruals and Provisions | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 6,032 | 4,842 | ↑ 24.6% | | Accruals and other payables | 26,205 | 28,289 | ↓ 7.3% | | **Total** | **32,237** | **33,131** | **↓ 2.7%** | Ageing Analysis of Trade Payables (Based on invoice date) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Within 3 months | 6,032 | 2,088 | ↑ 188.9% | | Over 3 months | – | 2,754 | ↓ 100% | | **Total** | **6,032** | **4,842** | **↑ 24.6%** | [Interest-Bearing Bank and Other Borrowings](index=23&type=section&id=Interest-Bearing%20Bank%20and%20Other%20Borrowings) Total interest-bearing borrowings were **HK$102,388 thousand** as of June 30, 2025, with most repayable within one year at an average effective annual interest rate of **7.6%** Composition of Interest-Bearing Bank and Other Borrowings | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Interest-bearing bank borrowings | 77,378 | 72,567 | ↑ 6.6% | | Other interest-bearing borrowings | 25,010 | 30,524 | ↓ 18.0% | | **Total** | **102,388** | **103,091** | **↓ 0.68%** | | Repayable within one year or on demand | 97,761 | 95,546 | ↑ 2.3% | | Repayable in the second year | 4,627 | 7,545 | ↓ 38.7% | | Fixed-rate borrowings | 25,164 | 30,740 | ↓ 18.2% | | Variable-rate borrowings | 77,224 | 72,351 | ↑ 6.7% | | Secured | 77,378 | 72,567 | ↑ 6.6% | | Unsecured | 25,010 | 30,524 | ↓ 18.0% | Average Effective Annual Interest Rate | Interest rate type | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Fixed-rate borrowings | 9.7% | 10.6% | ↓ 0.9% | | Variable-rate borrowings | 6.9% | 7.3% | ↓ 0.4% | [Convertible Loan and Derivative Financial Liabilities](index=24&type=section&id=Convertible%20Loan%20and%20Derivative%20Financial%20Liabilities) EFL's **HK$7,600 thousand** convertible loan notes were partially repaid and reclassified as other borrowings due to significant modifications, resulting in zero convertible loan and derivative financial liabilities - EFL issued convertible loan notes with a principal amount of **HK$7,600 thousand** in December 2021 and January 2022 for the Group's general working capital[86](index=86&type=chunk)[88](index=88&type=chunk)[191](index=191&type=chunk)[194](index=194&type=chunk) - For the year ended December 31, 2024, approximately **HK$694,000** of the convertible notes were repaid, and the maturity date for the remaining portion was extended to March 31, 2026[87](index=87&type=chunk)[89](index=89&type=chunk)[193](index=193&type=chunk)[195](index=195&type=chunk) - Due to significant modifications, the remaining outstanding portion was reclassified as other borrowings, and the conversion option lapsed[87](index=87&type=chunk)[89](index=89&type=chunk)[193](index=193&type=chunk)[195](index=195&type=chunk) Convertible Loan and Derivative Financial Liabilities | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Liability component | – | – | No change | | Derivative component | – | – | No change | [Share Capital](index=25&type=section&id=Share%20Capital) As of June 30, 2025, authorized share capital was **HK$200,000 thousand**, with issued and fully paid capital of **HK$51,560 thousand**, consistent with prior period Composition of Share Capital | Item | Number of shares | Amount (HK$ thousand) | | :--- | :--- | :--- | | Authorised ordinary shares (HK$0.01 each) | 20,000,000,000 | 200,000 | | Issued and fully paid shares (HK$0.01 each) | 5,156,035,108 | 51,560 | - As of June 30, 2025, the number and amount of issued and fully paid shares remained consistent with December 31, 2024[93](index=93&type=chunk) [Share Option Scheme](index=25&type=section&id=Share%20Option%20Scheme) The Company's share option scheme, adopted June 9, 2020, aims to incentivize talent, with no outstanding options reported as of June 30, 2025 - The Company adopted a share option scheme on June 9, 2020, to incentivize or reward eligible participants who contribute to the Group and/or to recruit and retain excellent employees[95](index=95&type=chunk)[96](index=96&type=chunk) - During any reporting period, no share options were outstanding, granted, exercised, cancelled, or lapsed[95](index=95&type=chunk)[97](index=97&type=chunk) [Related Party Transactions](index=26&type=section&id=Related%20Party%20Transactions) The Group engaged in various related party transactions, including payments to related companies, loans to associates and directors, and administrative service income Summary of Related Party Transactions | Transaction type | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Rental expenses paid to a related company | (748) | (1,868) | ↓ 59.9% | | Cost of medical services paid to a related company | (178) | (218) | ↓ 18.3% | | Consultancy fees paid to an associate | – | (320) | Discontinued | | Loans provided to an associate (included in deposits and other receivables) | 7,439 | 7,439 | No change | | Interest receivable from an associate (included in deposits and other receivables) | 505 | 356 | ↑ 41.9% | | Interest income from an associate (included in other income) | 74 | 74 | No change | | Loans from a related party (included in interest-bearing other borrowings) | 4,627 | 3,906 | ↑ 18.4% | | Interest paid to a related party | (138) | (95) | ↑ 45.3% | | Income generated from administrative and management services provided to a related company | 617 | – | New income | Key Management Personnel Remuneration | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Salaries and other short-term benefits | 549 | 1,267 | ↓ 56.6% | | Retirement scheme contributions | 8 | 16 | ↓ 50.0% | | **Total** | **557** | **1,283** | **↓ 56.6%** | - Loans provided to and interest paid to Mr. Lawrence Tang, a director of certain subsidiaries of the Company, constitute related party transactions[103](index=103&type=chunk) [Management Discussion and Analysis](index=28&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's business and financial performance, future outlook, and key operational aspects [Business and Financial Review](index=28&type=section&id=Business%20and%20Financial%20Review) The Group's loss for H1 2025 narrowed to **HK$19,232 thousand**, driven by reduced expenses and improved financial asset performance, despite revenue decline and an associate disposal loss - Loss for the period was approximately **HK$19,232,000**, a decrease from **HK$23,712,000** in the prior period[105](index=105&type=chunk) - The reduction in loss was primarily due to decreased administrative expenses, a shift from loss to gain on disposal of financial assets at FVTPL, and a narrower share of losses from associates, partially offset by decreased revenue and a loss on disposal of an associate[105](index=105&type=chunk) - The Group's principal businesses are: (i) provision of hotel and related services in Australia; (ii) money lending business; and (iii) asset investment business[104](index=104&type=chunk)[108](index=108&type=chunk) [Overall Performance Review](index=28&type=section&id=Overall%20Performance%20Review) The Group's loss for H1 2025 decreased by **18.9%** to **HK$19,232 thousand**, driven by expense reductions and improved financial asset performance, despite revenue decline Changes in Key Financial Indicators | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Loss for the period | 19,232 | 23,712 | ↓ 18.9% | | Revenue | 34,502 | 38,071 | ↓ 9.4% | | Administrative expenses | 37,123 | 41,272 | ↓ 10.1% | | Gain/(loss) on disposal of financial assets at FVTPL | 2,314 | (87) | Turned from loss to gain | | Share of losses of associates | 6,216 | 9,305 | ↓ 33.1% | | Loss on disposal of an associate | 2,590 | – | New loss incurred | - The reduction in loss was primarily attributable to a decrease in administrative expenses and an increase in gains from financial asset disposals[105](index=105&type=chunk) [Australia Hotel and Related Services Business](index=28&type=section&id=Australia%20Hotel%20and%20Related%20Services%20Business) Australia hotel segment revenue decreased by **3%** to **HK$31,943 thousand** for H1 2025, impacted by global economic challenges and slow tourism recovery, with occupancy falling to **69%** - The Group provides hotel and related services in Australia through Balgownie Estate Vineyard Resort & Spa, an award-winning tourist destination[106](index=106&type=chunk)[107](index=107&type=chunk)[110](index=110&type=chunk) Key Metrics for Australia Hotel Business | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue (HK$ thousand) | 31,943 | 32,958 | ↓ 3.08% | | Occupancy rate | 69% | 74% | ↓ 5% | | Number of luxury rooms | 70 | 70 | No change | | Wine club members | Approximately 1,300 | – | Newly added | - The decrease in revenue was mainly due to global economic challenges and slow recovery of international tourism, affecting travel demand, conference business, and wine club operations[112](index=112&type=chunk)[115](index=115&type=chunk) - Balgownie completed renovation works in October 2024 and is launching new wine varieties and low-alcohol options to attract consumers[114](index=114&type=chunk)[116](index=116&type=chunk) [Money Lending Business](index=30&type=section&id=Money%20Lending%20Business) Money lending interest income decreased by **49.95%** to **HK$2,559 thousand** for H1 2025, primarily due to reduced loan disbursements, with the Group maintaining prudent monitoring - The Group conducts money lending business in Hong Kong through its wholly-owned subsidiary, Best Profit Finance Limited[118](index=118&type=chunk)[122](index=122&type=chunk) Interest Income from Money Lending Business | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Interest income | 2,559 | 5,113 | ↓ 49.95% | - The decrease in interest income was mainly due to fewer loans disbursed during the period[118](index=118&type=chunk)[122](index=122&type=chunk) [Asset Investment Business](index=30&type=section&id=Asset%20Investment%20Business) Asset investment portfolio, mainly listed securities, recorded a **HK$2,819 thousand** fair value loss on FVTPL assets and a **HK$2,509 thousand** loss on an associate disposal for H1 2025 - The Group's asset investment portfolio primarily comprises securities issued by listed companies[119](index=119&type=chunk)[123](index=123&type=chunk) Fair Value Losses from Asset Investment Business | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Fair value loss on financial assets at FVTPL | 2,819 | 3,714 | ↓ 24.1% | | Fair value loss on financial assets at FVTOCI | 2 | 503 | ↓ 99.6% | - In January 2025, the Group disposed of an associate (EFL held a **48.33%** equity interest), recording a loss of **HK$2,509 thousand**[120](index=120&type=chunk)[123](index=123&type=chunk) [Discontinued Operations](index=30&type=section&id=Discontinued%20Operations) The 'provision of services via online media' segment was discontinued in FY2024 following the disposal of Dynamic Indonesia Holdings Limited, with no current period revenue - The 'provision of services via online media' segment was discontinued during the year ended December 31, 2024, with no related revenue in the current period[117](index=117&type=chunk)[121](index=121&type=chunk) [Significant Investment Prospects in Associates](index=31&type=section&id=Significant%20Investment%20Prospects%20in%20Associates) The Group's **48.33%** equity investment in Luck Key Investment Limited, a medical diagnostic service provider, is significant, with a carrying value of **HK$17,830 thousand** and a share of loss of **HK$5,111 thousand** for H1 2025 - The Group holds approximately **48.33%** equity interest in Luck Key Investment Limited, with an investment cost of approximately **HK$56,511 thousand** and a carrying value of approximately **HK$17,830 thousand**, representing approximately **5.1%** of the Group's total assets[124](index=124&type=chunk)[126](index=126&type=chunk) - Luck Key primarily engages in providing medical diagnostic and health check services, operating ten medical examination centers and two laboratories in Hong Kong[125](index=125&type=chunk)[127](index=127&type=chunk) Luck Key Financial Performance | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Luck Key Revenue | 98,630 | 94,879 | ↑ 4.0% | | Group's share of Luck Key loss | 5,111 | 9,580 | ↓ 46.6% | | Luck Key loss attributable to shareholders | 10,576 | 19,821 | ↓ 46.6% | - The Group will continue to hold the investment unless there is a change in investment strategy or an opportunity for realization arises, to optimize portfolio returns[130](index=130&type=chunk)[134](index=134&type=chunk) [Outlook](index=32&type=section&id=Outlook) The global economy faces ongoing downside risks from geopolitical tensions and economic volatility, while the Group aims to strengthen existing businesses and create shareholder value through strategic planning - The global economy will face downside risks such as geopolitical tensions, trade fragmentation, economic volatility, the Russia-Ukraine war, the Israel-Palestine conflict, and tariff wars[131](index=131&type=chunk)[135](index=135&type=chunk) - The Group will continue to develop, maintain, and strengthen its existing businesses by formulating and implementing its own business plans and strategies, leveraging its business model, competitiveness, and strengths[132](index=132&type=chunk)[135](index=135&type=chunk) [Financial Resources and Liquidity](index=33&type=section&id=Financial%20Resources%20and%20Liquidity) As of June 30, 2025, total assets were **HK$351,619 thousand**, with cash significantly reduced, and total borrowings of **HK$102,388 thousand** leading to increased gearing and net debt to equity ratios Key Financial Resources and Liquidity Indicators | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Total assets | 351,619 | 369,409 | ↓ 4.8% | | Cash and cash equivalents | 1,812 | 10,987 | ↓ 83.5% | | Borrowings repayable within one year (or on demand) | 97,761 | 95,546 | ↑ 2.3% | | Total borrowings | 102,388 | 103,091 | ↓ 0.68% | | Average annual interest rate | 7.6% | 8.3% | ↓ 0.7% | | Gearing ratio | 0.41 times | 0.40 times | ↑ 0.01 | | Net debt to equity ratio | 0.64 times | 0.56 times | ↑ 0.08 | - Cash and cash equivalents are denominated in HKD, USD, and AUD, with a significant increase in AUD proportion[136](index=136&type=chunk)[138](index=138&type=chunk) - Approximately **80%** of total borrowings are denominated in AUD, and **20%** in HKD[136](index=136&type=chunk)[138](index=138&type=chunk) [Capital Structure](index=34&type=section&id=Capital%20Structure) As of June 30, 2025, shareholders' equity was **HK$207,426 thousand** and total borrowings **HK$102,388 thousand**, with some loans subject to covenants and primarily variable-rate and secured Key Capital Structure Indicators | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Shareholders' equity | 207,426 | 223,276 | ↓ 7.1% | | Total borrowings | 102,388 | 103,091 | ↓ 0.68% | | Fixed-rate borrowings | 25,164 | 30,740 | ↓ 18.2% | | Variable-rate borrowings | 77,224 | 72,351 | ↑ 6.7% | | Secured borrowings | 77,378 | 72,567 | ↑ 6.6% | | Unsecured borrowings | 25,010 | 30,524 | ↓ 18.0% | | Repayable within one year or on demand | 97,761 | 95,546 | ↑ 2.3% | | Repayable in the second year | 4,627 | 7,545 | ↓ 38.7% | Average Effective Annual Interest Rate | Interest rate type | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Fixed-rate borrowings | 9.7% | 10.6% | ↓ 0.9% | | Variable-rate borrowings | 6.9% | 7.3% | ↓ 0.4% | - Certain loans are subject to conditions common in financial institution lending arrangements, and a breach could result in repayment on demand[141](index=141&type=chunk)[142](index=142&type=chunk) [Foreign Exchange Risk Management](index=35&type=section&id=Foreign%20Exchange%20Risk%20Management) Group revenue and costs are primarily in HKD and AUD; no derivative hedging was used, but foreign currency risk is monitored for potential future hedging - The Group's revenue and costs are primarily denominated in HKD and AUD[148](index=148&type=chunk)[151](index=151&type=chunk) - No derivative financial instruments were invested for hedging purposes during the reporting period[148](index=148&type=chunk)[151](index=151&type=chunk) - The Group will continue to monitor foreign currency risk and consider using appropriate hedging instruments when exchange rates fluctuate[148](index=148&type=chunk)[151](index=151&type=chunk) [Pledge of Assets and Capital Commitments](index=35&type=section&id=Pledge%20of%20Assets%20and%20Capital%20Commitments) Approximately **HK$79,557 thousand** of assets were pledged for borrowings as of June 30, 2025, with no significant contracted capital commitments Pledge of Assets | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Amount of freehold land, buildings and motor vehicles pledged | 79,557 | 75,611 | ↑ 5.2% | - As of June 30, 2025, the Group had no significant contracted but unprovided capital commitments[150](index=150&type=chunk)[153](index=153&type=chunk) [Dealings in Listed Securities](index=36&type=section&id=Dealings%20in%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for 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[154](index=154&type=chunk)[156](index=156&type=chunk) [Litigation and Claims](index=36&type=section&id=Litigation%20and%20Claims) The Group is involved in Convoy and Chu litigations concerning share allotments and financing, with potential liabilities currently deemed unreliable to estimate, thus no provisions are made - In the Convoy Litigation, the plaintiffs seek rescission of Convoy share allotments, annulment of financing facilities, and damages[155](index=155&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[161](index=161&type=chunk) - In the Chu Litigation, the petitioners seek declarations of invalidity for Convoy share placements and damages[164](index=164&type=chunk)[166](index=166&type=chunk) - The Group believes that the potential liability cannot be reliably estimated at present, and therefore no provision has been made for the aforementioned legal proceedings[168](index=168&type=chunk)[173](index=173&type=chunk) [Contingent Liabilities](index=39&type=section&id=Contingent%20Liabilities) Excluding disclosed litigations and claims, the Group had no other significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had no significant contingent liabilities (2024: nil)[169](index=169&type=chunk)[174](index=174&type=chunk) [Employee Remuneration Policy](index=39&type=section&id=Employee%20Remuneration%20Policy) As of June 30, 2025, the Group had approximately **140 employees** with total staff costs of **HK$20,389 thousand**, focusing on talent development and retention, with director remuneration based on expertise Number of Employees and Staff Costs | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of employees | Approximately 140 | Approximately 119 | ↑ 17.6% | | Total staff costs (HK$ thousand) | 20,389 | 19,831 | ↑ 2.8% | - The Group maintains and enhances employee capabilities by providing adequate and regular training, career development opportunities, and benefits (including provident fund schemes and medical plans)[171](index=171&type=chunk)[175](index=175&type=chunk)[179](index=179&type=chunk)[183](index=183&type=chunk) - The directors' remuneration policy is determined by the Board based on the recommendations of the Remuneration Committee, with reference to the directors' expertise, qualifications, and abilities[178](index=178&type=chunk)[183](index=183&type=chunk) [Directors' and Chief Executive's Interests](index=40&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, no Directors or Chief Executive held any disclosable interests or short positions in the Company's or its associated corporations' securities - As of June 30, 2025, no Director or Chief Executive of the Company held or was deemed to hold any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[182](index=182&type=chunk)[186](index=186&type=chunk) [Substantial Shareholders' Interests](index=41&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, Mr. Ng Ting Kit and Deep Shine Holdings Limited were substantial shareholders, holding **9.64%** and **5.06%** long positions respectively, with no other disclosable interests Substantial Shareholders' Long Positions in Shares | Name of Shareholder | Capacity | Number of shares involved | Approximate percentage | | :--- | :--- | :--- | :--- | | Mr. Ng Ting Kit | Beneficial owner | 497,180,000 | 9.64% | | Mr. Ng Ting Kit | Interest in controlled corporation | 260,800,000 | 5.06% | | Deep Shine Holdings Limited | Beneficial owner | 260,800,000 | 5.06% | - Mr. Ng Ting Kit is deemed to be interested in the shares held by Deep Shine Holdings Limited, which is wholly-owned by him[189](index=189&type=chunk) - As of June 30, 2025, save as disclosed above, there were no other substantial shareholders' interests required to be disclosed to the Company and recorded in the register[189](index=189&type=chunk)[190](index=190&type=chunk) [Issue of Convertible Loan](index=42&type=section&id=Issue%20of%20Convertible%20Loan) EFL's **HK$7,600 thousand** convertible loan notes were partially repaid and reclassified as other borrowings due to significant modifications, with the conversion option having lapsed - EFL issued convertible loan notes totaling **HK$7,600,000** to independent third parties for the Group's general working capital[191](index=191&type=chunk)[194](index=194&type=chunk) - For the year ended December 31, 2024, approximately **HK$694,000** of the convertible notes were repaid, and the maturity date for the remaining portion was extended to March 31, 2026[193](index=193&type=chunk)[195](index=195&type=chunk) - Due to significant modifications, the remaining outstanding portion was reclassified as other borrowings, and the conversion option lapsed[193](index=193&type=chunk)[195](index=195&type=chunk) [Share Option Scheme](index=43&type=section&id=Share%20Option%20Scheme) The Company's share option scheme, adopted June 9, 2020, allows for granting options to eligible participants at specific prices, with **533,623,510 shares** available under the limit, but no options were granted or outstanding in H1 2025 - The share option scheme aims to incentivize or reward eligible participants who contribute to the Group and/or to recruit and retain excellent employees[197](index=197&type=chunk)[200](index=200&type=chunk) - The maximum number of shares that any participant may be granted in any twelve-month period shall not exceed **1%** of the total number of shares then in issue and available for issue[197](index=197&type=chunk)[201](index=201&type=chunk) - The exercise price shall be determined by the Directors, but shall not be less than the highest of the closing price of the shares as stated in GEM's daily quotations sheet on the date of grant, the average closing price of the shares as stated in GEM's daily quotations sheets for the five trading days immediately preceding the date of the proposed grant, or the nominal value of the shares[201](index=201&type=chunk) - As of June 30, 2025, **533,623,510 shares** could be granted under the existing scheme limit, but no share options were granted or outstanding during the reporting period[203](index=203&type=chunk)[205](index=205&type=chunk)[210](index=210&type=chunk) [Changes in Directors' Information and Competing Business Interests](index=44&type=section&id=Changes%20in%20Directors'%20Information%20and%20Competing%20Business%20Interests) Independent Non-executive Director Mr. Tong Hin Sum's role changed, and Non-executive Director Mr. Ng Ting Ho has competing money lending business interests, with no other disclosed competing interests - Independent Non-executive Director Mr. Tong Hin Sum has been re-designated from an independent non-executive director to a non-executive director of Profit Point Holdings Limited, effective June 30, 2025[206](index=206&type=chunk)[211](index=211&type=chunk) - Non-executive Director Mr. Ng Ting Ho holds directorships in other companies engaged in money lending business, which compete with the Group's business[208](index=208&type=chunk)[212](index=212&type=chunk) - Save as disclosed above, none of the Directors, controlling shareholders, or their respective close associates have any interests in any business that competes or may compete, either directly or indirectly, with the business of the Group[209](index=209&type=chunk)[212](index=212&type=chunk) [Corporate Governance](index=45&type=section&id=Corporate%20Governance) The Company adheres to its Directors' securities trading code and Corporate Governance Code, with a noted deviation in Chairman and CEO roles, and the Audit Committee has reviewed the interim results - The Company has adopted a code of conduct regarding Directors' securities transactions, with terms no less exacting than the required standards of dealing set out in the GEM Listing Rules[213](index=213&type=chunk)[217](index=217&type=chunk) - The Company has complied with the Corporate Governance Code, except for the unseparated roles of Chairman and Chief Executive, with the Chief Executive position currently vacant[215](index=215&type=chunk)[218](index=218&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the interim results report and found it compliant with applicable accounting standards and GEM Listing Rules[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) [Code for Securities Transactions by Directors](index=45&type=section&id=Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted a code of conduct for Directors' securities transactions, compliant with GEM Listing Rules, and all Directors have adhered to it - The Company has adopted a code of conduct regarding Directors' securities transactions, with terms no less exacting than the required standards of dealing set out in Rules 5.48 to 5.67 of the GEM Listing Rules[213](index=213&type=chunk)[217](index=217&type=chunk) - All Directors have complied with the required standards of dealing and the code of conduct regarding Directors' securities transactions[213](index=213&type=chunk)[217](index=217&type=chunk) [Corporate Governance Code](index=45&type=section&id=Corporate%20Governance%20Code) The Company complies with the Corporate Governance Code, but the CEO role has been vacant since January 1, 2025, and the Board structure will be reviewed to fill it - The Company has complied with the Corporate Governance Code, although the roles of Chairman and Chief Executive should be separate, with Mr. Ng Ting Ho, a Non-executive Director, currently serving as Chairman, and the Chief Executive position vacant[215](index=215&type=chunk)[218](index=218&type=chunk) - The Company will periodically review the current structure of the Board and will fill the Chief Executive position when a suitable candidate is identified[216](index=216&type=chunk)[219](index=219&type=chunk) [Audit Committee](index=46&type=section&id=Audit%20Committee) The Audit Committee, chaired by Mr. Wong Siu Keung and comprising three independent non-executive directors, reviewed the interim results and found them compliant with accounting standards and GEM Listing Rules - The Audit Committee comprises three independent non-executive directors, with Mr. Wong Siu Keung as Chairman[221](index=221&type=chunk)[223](index=223&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated results for the six months ended June 30, 2025, and this report[222](index=222&type=chunk)[223](index=223&type=chunk) - The Committee is of the opinion that such results and report were prepared in accordance with applicable accounting standards and the GEM Listing Rules, and that adequate disclosures have been made[222](index=222&type=chunk)[223](index=223&type=chunk)