[Interim Results and Operations Overview](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E7%87%9F%E9%81%8B%E6%A6%82%E8%A6%81) Lingyue Service Group announced unaudited interim results for the six months ended June 30, 2025, with revenue increasing by 2.4% to RMB 321.0 million, but gross profit and net profit decreased by 4.5% and 12.2% respectively; managed area slightly decreased while contracted area continued to grow Interim Financial Performance | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 321.0 | 313.3 | +2.4% | | Gross Profit | 95.1 | 99.6 | -4.5% | | Net Profit | 53.0 | 60.3 | -12.2% | - As of June 30, 2025, the Group had **257 contracted projects** with a contracted gross floor area of **36.0 million square meters**, and **252 managed projects** with a managed gross floor area of **31.4 million square meters**[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) During the reporting period, the company's revenue slightly increased, but changes in cost of sales, impairment losses on financial assets, and income tax expense led to a year-on-year decrease in net profit Interim Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 320,960 | 313,294 | | Cost of sales | (225,899) | (213,732) | | Gross profit | 95,061 | 99,562 | | Other income and gains | 5,168 | 3,273 | | Administrative expenses | (28,076) | (27,475) | | Net impairment losses on financial assets and goodwill | (11,331) | (4,341) | | Other expenses | (114) | (153) | | Share of profits of a joint venture | 18 | 709 | | Profit before tax | 60,726 | 71,575 | | Income tax expense | (7,766) | (11,249) | | Profit for the period | 52,960 | 60,326 | | Profit attributable to owners of the parent | 49,076 | 58,018 | | Profit attributable to non-controlling interests | 3,884 | 2,308 | | Basic and diluted earnings per share attributable to ordinary equity holders of the parent | RMB 0.17 | RMB 0.20 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) In addition to profit for the period, other comprehensive income was mainly affected by fair value changes of equity investments designated at fair value, showing a positive gain this period compared to a loss in the prior period Interim Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 52,960 | 60,326 | | Other comprehensive income, net of tax | 785 | (15) | | Total comprehensive income for the period | 53,745 | 60,311 | | Total comprehensive income attributable to owners of the parent | 49,861 | 58,003 | | Total comprehensive income attributable to non-controlling interests | 3,884 | 2,308 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%85%8B%E8%A1%A8) As of June 30, 2025, the company's net current assets and total equity both increased, while non-current assets slightly decreased and current liabilities reduced Interim Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 34,165 | 35,793 | | Total current assets | 943,232 | 934,225 | | **Liabilities** | | | | Total current liabilities | 292,089 | 338,203 | | Total non-current liabilities | 834 | 936 | | **Equity** | | | | Net assets | 684,474 | 630,879 | | Equity attributable to owners of the parent | 665,320 | 615,460 | | Non-controlling interests | 19,154 | 15,419 | | Total equity | 684,474 | 630,879 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [1. Company and Group Information](index=6&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E5%92%8C%E9%9B%86%E5%9C%98%E8%B3%87%E6%96%99) Lingyue Service Group, incorporated in the Cayman Islands and listed on HKEX in July 2021, primarily provides property management, value-added services to non-property owners, and community value-added services, with its ultimate controlling shareholders being six individuals including Mr. Liu Yuhui - The company was incorporated in the Cayman Islands and listed on the Main Board of The Stock Exchange of Hong Kong Limited since **July 12, 2021**[10](index=10&type=chunk) - The Group primarily engages in providing property management services, value-added services to non-property owners, and community value-added services[10](index=10&type=chunk) - The ultimate controlling shareholders of the company are Mr. Liu Yu Hui, Mr. Liu Ce, Mr. Liu Hao Wei, Ms. Wang Tao, Ms. Long Yi Qin, and Ms. Hou San Li[10](index=10&type=chunk) [2. Accounting Policies](index=6&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared on a historical cost basis, except for equity investments designated at fair value, with no significant impact from new IFRS amendments applied this period - The condensed consolidated financial statements are prepared on a historical cost basis, except for equity investments designated at fair value through other comprehensive income[12](index=12&type=chunk) - The application of amendments to International Financial Reporting Standards during this interim period had no significant impact on the Group's financial performance and position for the current and prior periods[13](index=13&type=chunk) [3. Revenue](index=7&type=section&id=3.%20%E6%94%B6%E7%9B%8A) Total revenue for the reporting period increased by 2.4% year-on-year, with significant growth in property management services revenue, while value-added services to non-property owners and community value-added services revenue both decreased Revenue by Service Type | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Property management services | 296,356 | 276,291 | | Value-added services to non-property owners | 4,045 | 9,910 | | Community value-added services | 20,559 | 27,093 | | **Total** | **320,960** | **313,294** | [4. Profit Before Tax](index=8&type=section&id=4.%20%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) Profit before tax decreased during the reporting period, mainly due to increased cost of services provided, higher amortization of other intangible assets, and a significant increase in net impairment losses on trade receivables Profit Before Tax Components | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of services provided | 225,899 | 213,732 | | Depreciation of property, plant and equipment | 1,711 | 1,745 | | Amortisation of other intangible assets | 1,984 | 1,038 | | Net impairment losses on financial assets: | | | | Net impairment losses on trade receivables | 13,041 | 4,654 | | Net reversal of impairment losses on amounts due from related companies | (1,058) | (106) | | Net impairment losses on financial assets included in prepayments and other receivables | (652) | (207) | [5. Income Tax Expense](index=9&type=section&id=5.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 31% year-on-year, primarily due to lower taxable profit, with the company applying 25%, 15% (western region preferential), and small-profit enterprise preferential tax rates in mainland China - Income tax expense decreased by approximately **31%** from RMB **11.2 million** in the prior period of 2024 to approximately **RMB 7.8 million**, primarily due to a decrease in taxable profit[22](index=22&type=chunk)[61](index=61&type=chunk) - The Group applied three types of tax rates during the reporting period, including a **25%** tax rate, a **15%** tax rate under the Western Region Preferential Tax Policy, and a preferential tax rate for small-profit enterprises[20](index=20&type=chunk) [6. Dividends](index=9&type=section&id=6.%20%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[23](index=23&type=chunk) [7. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=10&type=section&id=7.%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share attributable to ordinary equity holders of the parent was RMB 0.17, lower than RMB 0.20 in the prior period, primarily due to decreased profit Earnings Per Share | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent for the purpose of calculating basic earnings per share | 49,076 | 58,018 | | Weighted average number of ordinary shares in issue for the purpose of calculating basic earnings per share | 285,685,000 | 285,685,000 | | Basic earnings per share | RMB 0.17 | RMB 0.20 | [8. Trade Receivables](index=11&type=section&id=8.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables increased by 4.2% to RMB 141.3 million from the end of 2024, mainly due to increased total revenue, with a notable increase in receivables aged 1-2 years Trade Receivables by Ageing | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 102,104 | 103,024 | | 1 to 2 years | 29,873 | 21,790 | | 2 to 3 years | 7,487 | 8,102 | | Over 3 years | 1,847 | 2,693 | | **Total** | **141,311** | **135,609** | - Trade receivables amounted to approximately **RMB 141.3 million**, an increase of approximately **RMB 5.7 million** or **4.2%** compared to approximately **RMB 135.6 million** as of December 31, 2024, primarily due to an increase in total revenue[63](index=63&type=chunk) [9. Trade Payables](index=11&type=section&id=9.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables decreased by 9.6% to RMB 37.1 million, primarily due to the company's adjustment of payment schedules Trade Payables by Ageing | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 28,943 | 37,122 | | Over 1 year | 8,189 | 3,965 | | **Total** | **37,132** | **41,087** | - Trade payables amounted to approximately **RMB 37.1 million**, a decrease of approximately **9.6%** compared to approximately **RMB 41.1 million** as of December 31, 2024, mainly due to the Group adjusting its payment schedule based on market conditions[65](index=65&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Development Strategy and Outlook](index=12&type=section&id=%E7%99%BC%E5%B1%95%E6%88%B0%E7%95%A5%E8%88%87%E5%B1%95%E6%9C%9B) The company adheres to its "deep cultivation in Southwest, layout in Xinjiang, and national development" strategy, forming "Sichuan + Xinjiang" as dual growth poles, steadily increasing managed scale, and expanding into diverse property types like schools, industrial parks, and public buildings - The Group adheres to its development strategy of "deep cultivation in Southwest, layout in Xinjiang, and national development," fostering "Sichuan + Xinjiang" as dual growth poles, achieving steady growth in managed scale, and deepening its presence in various property types such as schools, industrial parks, and public buildings, gradually moving towards a comprehensive and diversified market[29](index=29&type=chunk) - Looking ahead to the second half of 2025, the Group will steadfastly uphold its service philosophy of "Kindness and Companionship, Touching Hearts," continuously building its foundation on quality, focusing on warm services, solidifying its operational base, concentrating on creating customer value, actively expanding its service boundaries, and guiding high-quality enterprise development with a long-term perspective[30](index=30&type=chunk) [Business Model of the Group](index=13&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E6%A5%AD%E5%8B%99%E6%A8%A1%E5%BC%8F) The Group operates three business lines: property management, value-added services to non-property owners, and community value-added services, offering comprehensive services across the property management value chain - The Group operates three business lines: (i) property management services, (ii) value-added services to non-property owners, and (iii) community value-added services, providing comprehensive services covering the entire property management value chain for its customers[31](index=31&type=chunk) - Community value-added services typically generate higher profit margins, thus continuously enhancing the Group's financial performance[32](index=32&type=chunk) [Property Management Services](index=13&type=section&id=%E7%89%A9%E6%A5%AD%E7%AE%A1%E7%90%86%E6%9C%8D%E5%8B%99) Property management services, the Group's core business, include security, cleaning, and maintenance for a diverse property portfolio; total contracted GFA increased by 1.0% while total managed GFA slightly decreased by 1.0% as of June 30, 2025 - The Group provides a wide range of property management services, including security, cleaning and landscaping, and repair and maintenance services, to property owners, residents, property developers, and tenants of managed non-residential properties[33](index=33&type=chunk) - The Group manages a diversified property portfolio, including residential properties, commercial properties, and public and other properties[33](index=33&type=chunk) - As of June 30, 2025, the Group's total contracted gross floor area was approximately **36.0 million square meters**, an increase of **1.0%** compared to the same period in 2024, while total managed gross floor area was approximately **31.4 million square meters**, a decrease of **1.0%** compared to the same period in 2024[34](index=34&type=chunk) [Scope of Services and Property Portfolio](index=13&type=section&id=%E6%9C%8D%E5%8B%99%E7%AF%84%E5%9C%8D%E8%88%87%E7%89%A9%E6%A5%AD%E7%B5%84%E5%90%88) The Group has provided property management services since 2002, managing 252 projects and contracting 257 projects as of June 30, 2025, with 4.671 million square meters of undelivered GFA expected to be delivered between August 2025 and August 2031 Property Management Portfolio | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of managed properties | 252 | 267 | | Number of contracted properties | 257 | 272 | | Managed GFA (thousand sq.m.) | 31,353 | 31,680 | | Contracted GFA (thousand sq.m.) | 36,024 | 35,665 | | Undelivered GFA (thousand sq.m.) | 4,671 | 3,985 | - The estimated time for delivery and revenue generation of undelivered projects as of June 30, 2025, ranges from **August 2025 to August 2031**[35](index=35&type=chunk) [Geographical Coverage and Revenue Breakdown](index=15&type=section&id=%E5%9C%B0%E5%8D%80%E8%A6%86%E8%93%8B%E8%88%87%E6%94%B6%E7%9B%8A%E6%98%8E%E7%B4%B0) The Group has expanded its geographical coverage to 34 cities across 9 provinces, 1 autonomous region, and 1 municipality in China, with Sichuan Province remaining the primary market contributing 78.3% of property management service revenue - The Group has expanded its geographical coverage to **34 cities**, **9 provinces**, **1 autonomous region**, and **1 municipality** in China[36](index=36&type=chunk) Property Management Revenue by Region | Region | 2025 Property Management Revenue (RMB thousand) | 2025 Property Management Revenue Share (%) | 2024 Property Management Revenue (RMB thousand) | 2024 Property Management Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Sichuan Province | 231,252 | 78.3 | 217,001 | 78.7 | | Xinjiang Uygur Autonomous Region | 24,658 | 8.3 | 22,161 | 8.0 | | Guangdong Province | 13,367 | 4.5 | 13,325 | 4.8 | | Jilin Province | 10,841 | 3.7 | 10,312 | 3.7 | | Hebei Province | 1,237 | 0.4 | 1,221 | 0.4 | | Henan Province | 3,872 | 1.3 | 4,310 | 1.6 | | Hubei Province | 3,679 | 1.2 | 3,425 | 1.2 | | Jiangsu Province | 998 | 0.3 | 762 | 0.3 | | Guizhou Province | 2,971 | 1.0 | 2,330 | 0.8 | | Chongqing Municipality | 1,980 | 0.7 | 1,444 | 0.5 | | Fujian Province | 957 | 0.3 | — | — | | **Total** | **295,812** | **100** | **276,291** | **100** | [Source of Managed Properties](index=17&type=section&id=%E5%9C%A8%E7%AE%A1%E7%89%A9%E6%A5%AD%E4%BE%86%E6%BA%90) The Group primarily serves properties developed by Landsea Holdings Group, but the number of managed projects and revenue contribution from non-Landsea Holdings Group and non-joint venture entities have increased, indicating enhanced third-party expansion capabilities Property Management Revenue by Developer Type | Developer Type | 2025 Property Management Revenue (RMB thousand) | 2025 Property Management Revenue Share (%) | 2024 Property Management Revenue (RMB thousand) | 2024 Property Management Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Landsea Holdings Group | 206,724 | 70.0 | 183,358 | 66.4 | | Joint ventures of Landsea Holdings Group | 5,469 | 1.8 | 14,722 | 5.3 | | Non-Landsea Holdings Group and non-joint ventures | 83,619 | 28.2 | 78,211 | 28.3 | | **Total** | **295,812** | **100** | **276,291** | **100** | Contracted Projects and GFA by Developer Type | Developer Type | 2025 Number of Contracted Projects | 2025 Contracted GFA (thousand sq.m.) | 2024 Number of Contracted Projects | 2024 Contracted GFA (thousand sq.m.) | | :--- | :--- | :--- | :--- | :--- | | Landsea Holdings Group | 94 | 19,514 | 97 | 18,169 | | Joint ventures of Landsea Holdings Group | 4 | 427 | 10 | 2,028 | | Non-Landsea Holdings Group and non-joint ventures | 159 | 16,083 | 165 | 15,468 | | **Total** | **257** | **36,024** | **272** | **35,665** | [Types of Managed Properties](index=19&type=section&id=%E5%9C%A8%E7%AE%A1%E7%89%A9%E6%A5%AD%E9%A1%9E%E5%9E%8B) Residential properties remain the dominant managed property type, contributing 81.2% of property management service revenue, with pre-delivery stage residential properties accounting for the largest share, while commercial and public/other property revenue contributions decreased Property Management Revenue by Property Type | Property Type | 2025 Property Management Revenue (RMB thousand) | 2025 Property Management Revenue Share (%) | 2024 Property Management Revenue (RMB thousand) | 2024 Property Management Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Residential properties | 240,242 | 81.2 | 206,108 | 74.6 | | —Pre-delivery stage | 196,740 | 66.5 | 170,479 | 61.7 | | —Owners' committee stage | 43,502 | 14.7 | 35,629 | 12.9 | | Commercial properties | 27,379 | 9.3 | 38,133 | 13.8 | | Public and other properties | 28,191 | 9.5 | 32,050 | 11.6 | | **Total** | **295,812** | **100** | **276,291** | **100** | [Value-Added Services to Non-Property Owners](index=20&type=section&id=%E9%9D%9E%E6%A5%AD%E4%B8%BB%E5%A2%9E%E5%80%BC%E6%9C%8D%E5%8B%99) Revenue from value-added services to non-property owners, including preliminary planning and sales office management, significantly decreased by 59.2% year-on-year to RMB 4.0 million, primarily due to a decline in sales office management services - Revenue from value-added services to non-property owners decreased by **59.2%** to approximately **RMB 4.0 million** compared to approximately **RMB 9.9 million** in the prior period of 2024[49](index=49&type=chunk) - The decrease in revenue was primarily due to a decline in sales office management services[49](index=49&type=chunk) Revenue from Value-Added Services to Non-Property Owners | Service Type | 2025 (RMB thousand) | 2025 Share (%) | 2024 (RMB thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Preliminary planning and design consultancy services | 2,148 | 53.1 | 2,110 | 21.3 | | Sales office management services | 1,702 | 42.1 | 6,500 | 65.6 | | Pre-delivery services | 9 | 0.2 | 525 | 5.3 | | Repair and maintenance services | 153 | 3.8 | 505 | 5.1 | | Property transaction assistance services | 33 | 0.8 | 270 | 2.7 | | **Total** | **4,045** | **100** | **9,910** | **100** | [Community Value-Added Services](index=20&type=section&id=%E7%A4%BE%E5%8D%80%E5%A2%9E%E5%80%BC%E6%9C%8D%E5%8B%99) Revenue from community value-added services, including community space management and renovation, decreased by 22.1% year-on-year to RMB 21.1 million, mainly due to a decline in "move-in ready" services, despite significant growth in convenience living and community retail services - Revenue from community value-added services decreased by **22.1%** to approximately **RMB 21.1 million** compared to approximately **RMB 27.1 million** in the prior period of 2024[51](index=51&type=chunk) - The decrease in revenue was primarily due to a decline in "move-in ready" services[51](index=51&type=chunk) Revenue from Community Value-Added Services | Service Type | 2025 (RMB thousand) | 2025 Share (%) | 2024 (RMB thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Community space management services | 3,164 | 15.0 | 3,915 | 14.4 | | Renovation and "move-in ready" services | 6,397 | 30.3 | 16,766 | 61.9 | | Convenience living services | 9,592 | 45.5 | 6,314 | 23.3 | | Community retail services | 1,950 | 9.2 | 98 | 0.4 | | **Total** | **21,103** | **100** | **27,093** | **100** | [Financial Review](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the Group's total revenue slightly increased, but higher cost of sales led to a decrease in gross profit and gross profit margin; administrative expenses rose due to increased labor costs, while income tax expense decreased due to lower taxable profit, resulting in a 14% year-on-year decline in profit attributable to owners of the parent - The Group's revenue was approximately **RMB 321.0 million**, an increase of approximately **2.4%** compared to **RMB 313.3 million** in the prior period of 2024[54](index=54&type=chunk) - The Group's gross profit decreased by **4.5%** from approximately **RMB 99.6 million** in the prior period of 2024 to approximately **RMB 95.1 million**, and the gross profit margin decreased by **2.2 percentage points** from **31.8% to 29.6%**[58](index=58&type=chunk) - Profit and total comprehensive income attributable to owners of the parent was approximately **RMB 49.9 million**, a decrease of approximately **14%** compared to **RMB 58 million** in the prior period of 2024[62](index=62&type=chunk) [Revenue Analysis](index=21&type=section&id=%E6%94%B6%E7%9B%8A%E5%88%86%E6%9E%90) Total revenue increased by 2.4% year-on-year to RMB 321.0 million, with property management services remaining the largest revenue source at 92.1%, driven by higher average unit prices for newly delivered properties, while non-property owner and community value-added services revenue both declined Revenue by Business Segment | Business Segment | 2025 (RMB thousand) | 2025 Revenue Percentage (%) | 2024 (RMB thousand) | 2024 Revenue Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 295,812 | 92.1 | 276,291 | 88.2 | | Value-added services to non-property owners | 4,045 | 1.3 | 9,910 | 3.2 | | Community value-added services | 21,103 | 6.6 | 27,093 | 8.6 | | **Total** | **320,960** | **100** | **313,294** | **100** | - The increase in property management services revenue was attributable to higher average unit prices for newly delivered properties[56](index=56&type=chunk) - The decrease in revenue from value-added services to non-property owners was mainly due to a reduction in sales office management services; the decrease in revenue from community value-added services was mainly due to a decline in "move-in ready" services[56](index=56&type=chunk) [Cost of Sales](index=22&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by 5.7% year-on-year to RMB 225.9 million, primarily due to increased operational costs from greater investment in infrastructure to enhance property management quality - The Group's cost of sales was approximately **RMB 225.9 million**, an increase of approximately **5.7%** compared to approximately **RMB 213.7 million** in the prior period of 2024[57](index=57&type=chunk) - The main reason for the increase in cost of sales was the Group's increased investment in infrastructure to enhance property quality, leading to higher operating costs[57](index=57&type=chunk) [Gross Profit and Gross Profit Margin](index=22&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit decreased by 4.5% year-on-year to RMB 95.1 million, and the gross profit margin declined by 2.2 percentage points to 29.6%, mainly due to increased operating costs, with community value-added services experiencing the largest margin decrease - The Group's gross profit decreased by **4.5%** from approximately **RMB 99.6 million** in the prior period of 2024 to approximately **RMB 95.1 million**[58](index=58&type=chunk) - The Group's gross profit margin decreased by **2.2 percentage points** from **31.8%** in the prior period of 2024 to **29.6%**, primarily due to increased operating costs[58](index=58&type=chunk) Gross Profit Margin by Business Segment | Business Segment | 2025 Gross Profit Margin (%) | 2024 Gross Profit Margin (%) | Gross Profit Margin Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 29.4 | 30.2 | -0.8 | | Value-added services to non-property owners | 31.1 | 33.3 | -2.2 | | Community value-added services | 38.0 | 46.9 | -8.9 | | **Total** | **29.6** | **31.8** | **-2.2** | [Administrative Expenses](index=23&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by 2.2% year-on-year to RMB 28.1 million, primarily attributable to higher labor costs - The Group's administrative expenses increased by approximately **2.2%** from approximately **RMB 27.5 million** in the prior period of 2024 to approximately **RMB 28.1 million**, mainly due to increased labor costs[60](index=60&type=chunk) [Income Tax Expense](index=23&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 31% year-on-year to RMB 7.8 million, mainly due to a reduction in taxable profit - The Group's income tax expense decreased by approximately **31%** from **RMB 11.2 million** in the prior period of 2024 to approximately **RMB 7.8 million**, primarily due to a decrease in taxable profit[61](index=61&type=chunk) [Profit Attributable to Owners of the Parent](index=23&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E5%88%A9%E6%BD%A4) Profit and total comprehensive income attributable to owners of the parent decreased by 14% year-on-year to RMB 49.9 million - Profit and total comprehensive income attributable to owners of the parent was approximately **RMB 49.9 million**, a decrease of approximately **14%** compared to **RMB 58 million** in the prior period of 2024[62](index=62&type=chunk) [Trade Receivables](index=24&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Trade receivables increased to RMB 141.3 million, up 4.2% from the end of 2024, primarily driven by an increase in total revenue - As of June 30, 2025, the Group's trade receivables were approximately **RMB 141.3 million**, an increase of approximately **RMB 5.7 million** or **4.2%** compared to approximately **RMB 135.6 million** as of December 31, 2024, primarily due to an increase in total revenue[63](index=63&type=chunk) [Prepayments, Deposits and Other Receivables](index=24&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Prepayments, deposits, and other receivables decreased by 15.6% to RMB 44.6 million, mainly due to a significant reduction in cash in transit balances - As of June 30, 2025, the Group's prepayments, deposits, and other receivables were approximately **RMB 44.6 million**, a decrease of approximately **15.6%** compared to approximately **RMB 52.8 million** as of December 31, 2024, primarily due to a significant decrease in cash in transit balances[64](index=64&type=chunk) [Trade Payables](index=24&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Trade payables decreased by 9.6% to RMB 37.1 million, primarily due to the company's adjustment of payment schedules based on market conditions - As of June 30, 2025, the Group's trade payables were approximately **RMB 37.1 million**, a decrease of approximately **9.6%** compared to approximately **RMB 41.1 million** as of December 31, 2024, mainly due to the Group adjusting its payment schedule based on market conditions[65](index=65&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains prudent financial management, closely monitoring its liquidity to ensure future funding needs are met, with cash primarily used for investments, information technology, and working capital - The Board of Directors closely monitors the Group's liquidity position to ensure that the liquidity structure of the Group's assets, liabilities, and other commitments can meet its funding needs in the foreseeable future[66](index=66&type=chunk) - During the reporting period, the Group's cash was primarily used for investments, information technology construction, and working capital, mainly funded by proceeds from the company's operations[66](index=66&type=chunk) [Interest Rate Risk](index=24&type=section&id=%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA) The Group faces no significant direct risks from market interest rate fluctuations as it has no material interest-bearing assets or liabilities - As the Group has no material interest-bearing assets and liabilities, it does not face significant direct risks related to changes in market interest rates[67](index=67&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) Operating primarily in China with all transactions denominated and settled in RMB, the Group does not engage in foreign exchange hedging, though RMB depreciation could adversely affect the value of dividends paid to overseas shareholders - The Group primarily conducts its business operations in China, with all transactions denominated and settled in RMB[68](index=68&type=chunk) - Any depreciation of the RMB would adversely affect the value of any dividends paid by the company to its shareholders outside China[68](index=68&type=chunk) - The Group currently does not engage in hedging activities aimed at or intended to manage foreign exchange rate risk[68](index=68&type=chunk) [Gearing Ratio](index=25&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The gearing ratio is not meaningful as of June 30, 2025, due to zero interest-bearing borrowings - The gearing ratio as of June 30, 2025, is not meaningful as the Group had zero interest-bearing borrowings on the same date (December 31, 2024: zero)[69](index=69&type=chunk) [Contingent Liabilities](index=25&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[70](index=70&type=chunk) [Material Acquisitions and Disposals](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[71](index=71&type=chunk) [Material Investments](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During the reporting period, the Group held no material investments - During the reporting period, the Group held no material investments[72](index=72&type=chunk) [Future Investments and Capital Asset Plans](index=25&type=section&id=%E6%9C%AA%E4%BE%86%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E8%A8%88%E5%8A%83) As of June 30, 2025, the Group had no significant future investment or capital asset plans beyond those disclosed in its prospectus - Except for those disclosed in the "Future Plans and Use of Proceeds" section of the company's prospectus dated June 29, 2021, the Group had no significant plans for investments and capital assets as of June 30, 2025[73](index=73&type=chunk) [Pledge of Assets](index=25&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group's pledged deposits amounted to RMB 0.1 million, consistent with the end of 2024 - As of June 30, 2025, the Group's pledged deposits amounted to **RMB 0.1 million** (December 31, 2024: RMB 0.1 million)[74](index=74&type=chunk) [Other Information](index=26&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Staff](index=26&type=section&id=%E5%93%A1%E5%B7%A5) As of June 30, 2025, the Group had 5,260 employees, a decrease from the end of 2024, with total staff costs remaining largely stable year-on-year, and plans to enhance training and adhere to local social security and provident fund regulations - As of June 30, 2025, the Group had **5,260 employees** (December 31, 2024: 5,644 employees)[75](index=75&type=chunk) - During the reporting period, total staff costs were approximately **RMB 149.7 million**, compared to approximately **RMB 149.5 million** in the prior period of 2024[75](index=75&type=chunk) - The Group will further strengthen its employee training programs using internal and external resources, adopt remuneration policies similar to its peers, and comply with local government regulations for social insurance contribution schemes or other retirement schemes[75](index=75&type=chunk) [Significant Post-Reporting Period Events](index=26&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E7%9A%84%E9%87%8D%E5%A4%A7%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) There have been no significant post-reporting period events affecting the company from June 30, 2025, up to the announcement date - There have been no significant events affecting the company from June 30, 2025, up to the date of this announcement[76](index=76&type=chunk) [Compliance with Corporate Governance Code](index=26&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Group is committed to maintaining high standards of corporate governance, having adopted and complied with all applicable provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules during the reporting period - The Group is committed to maintaining and enhancing high standards of corporate governance to safeguard shareholders' interests, enhance corporate value, and improve accountability[77](index=77&type=chunk) - The company has adopted the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and has complied with all applicable code provisions during the reporting period[77](index=77&type=chunk) [Standard Code for Securities Transactions by Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, with all directors confirming compliance during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[78](index=78&type=chunk) - Following specific enquiries made to all directors, they confirmed that they have complied with the standards for securities transactions by directors as set out in the Standard Code during the reporting period[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held as of June 30, 2025 - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[79](index=79&type=chunk) - As of June 30, 2025, the company held no treasury shares[79](index=79&type=chunk) [Interim Dividends](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[80](index=80&type=chunk) [Audit Committee Review of Unaudited Interim Results](index=27&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%9A%84%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2025, agreeing with management on accounting principles, risk management, internal controls, and financial reporting, with the committee comprising three independent non-executive directors, including a professionally qualified chair - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and has agreed with the company's management on the accounting principles and practices adopted by the Group, risk management, internal controls, and financial reporting matters[81](index=81&type=chunk) - The Audit Committee comprises three independent non-executive directors, Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan, with Ms. Zou Dan appointed as the chairperson of the Audit Committee, possessing the appropriate professional qualifications or relevant financial management expertise as required by Rule 3.10(2) of the Listing Rules[81](index=81&type=chunk) [Publication of Interim Results Announcement and Interim Report on HKEX and Company Website](index=28&type=section&id=%E6%96%BC%E8%81%AF%E4%BA%A4%E6%89%80%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim results announcement has been published on the websites of HKEX and the company, with the interim report to be made available to shareholders in due course - This interim results announcement will be published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company (www.lingyue-service.com) respectively[82](index=82&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be provided to shareholders in due course and will be available on the aforementioned websites[82](index=82&type=chunk) [Board of Directors](index=28&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of the announcement date, the Board of Directors includes executive directors Mr. Liu Yuqi and Ms. Luo Hongping; non-executive directors Ms. Wang Tao and Ms. Hou Sanli; and independent non-executive directors Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan - As of the date of this announcement, the Board of Directors comprises executive directors Mr. Liu Yuqi and Ms. Luo Hongping; non-executive directors Ms. Wang Tao and Ms. Hou Sanli; and independent non-executive directors Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan[84](index=84&type=chunk)

中國創意控股有限公司 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之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任 何 責 任。 Creative China Holdings Limited （於開曼群島註冊成立之有限公司） （股份代號：8368） 截至二零二五年六月三十日止六個月之 中期業績公告 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM（「GEM」）的 特 色 GEM的 定 位，乃 為 中 小 型 公 司 提 供 一 個 上 市 的 市 場。此 等 公 司 相 比 起 其 他 在 聯 交 所 上 市 的 公 司 帶 有 較 高 投 資 風 險。有 意 投 資 的 人 士 應 了 解 投 資 於 該 等 公 司 的 潛 在 風 險，並 應 經 過 審 慎 周 詳 的 考 慮 後 方 作 出 投 資 決 定。 由 於GEM上 市 公 司 普 遍 為 中 小 型 公 司，在GEM買賣的證券可能會較於聯交所 主 板 買 賣 之 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 Sheen Tai Holdings Group Company Limited 順 泰 控 股 集 團 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） （股份代號：01335） 截至2025年6月30日止六個月 中期業績公告 財務摘要 - 1 - • 截至2025年6月30日止六個月，來自持續經營業務的收入約為27.7百萬港元，較 2024年同期增加約1.8%。 • 截至2025年6月30日止六個月，來自持續經營業務的毛利約為18.3百萬港元，較 2024年同期增加約3.2%。 • 截至2025年6月30日止六個月，來自持續經營業務的毛利率約為66.2% ，較2024年 同期上升約1.0%。 • 截至2025年6月30日止六個月，本公司權益股東應佔溢利約為2.2百萬港元，較 2024年同期增加約18.8%。 • 截至2025年6月30日止六個月，來自持續及已終止經營業務的 ...

(Incorporated in the Cayman Islands with limited liability) Stock Code 8059 (於開曼群島註冊成立的有限公司) 2025 中期報告 INTERIM REPORT (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential ri ...

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之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因依賴 該等內容而引致之任何損失承擔任何責任。 GOME RETAIL HOLDINGS LIMITED （於百慕達註冊成立之有限公司） （股份代號：493） 截至2025年6月30日止6個月期間 未經審核中期業績 | 財務摘要 | | | | --- | --- | --- | | | 2025年上半年 人民幣百萬元 | 2024年上半年 人民幣百萬元 | | 收入 | 297 | 169 | | 歸屬予母公司擁有者應佔虧損 | (1,346) | (4,432) | | 每股虧損 | | | | －基本及攤薄 | （人民幣2.8分） | （人民幣9.4分） | 1 國美零售控股有限公司（「本公司」）董事會（「董事會」）公佈本公司及其附屬公司 （「本集團」）截至2025年6月30日止6個月之未經審核中期財務資料連同2024年同 期之比較數字如下： 中期簡明綜合損益表 截至2025年6月30日止6個月 | | | 截至6月30日止6個月 | | | - ...

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Financial Summary](index=1&type=section&id=Financial%20Summary) During the reporting period, the company's revenue slightly decreased, and gross profit consequently declined, but profit attributable to owners of the parent and EBITDA both achieved significant growth, primarily due to positive impacts from non-operating factors Financial Summary for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB Million) | June 30, 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 4,355.5 | 4,389.4 | (33.9) | (0.8%) | | Gross Profit | 3,715.8 | 3,797.4 | (81.6) | (2.1%) | | Gross Profit Margin | 85.3% | 86.5% | -1.2% | - | | Profit Attributable to Owners of the Parent | 1,358.2 | 1,089.9 | 268.3 | 24.6% | | Adjusted Non-Operating Profit Attributable to Owners of the Parent | 1,135.8 | 1,112.4 | 23.4 | 2.1% | | EBITDA | 1,832.5 | 1,641.5 | 191.0 | 11.6% | | Adjusted Non-Operating EBITDA | 1,610.1 | 1,663.9 | (53.8) | (3.2%) | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited interim condensed consolidated statements of profit or loss, comprehensive income, and financial position for the six months ended June 30, 2025, detailing the company's key financial data including revenue, costs, profit, assets, liabilities, and equity [Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The company's revenue slightly decreased during the reporting period, but profit for the period and profit attributable to owners of the parent both achieved significant growth due to reduced income tax expense and increased other income and gains Interim Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 4,355,485 | 4,389,445 | | Cost of Sales | (639,680) | (592,052) | | Gross Profit | 3,715,805 | 3,797,393 | | Other Income and Gains | 408,289 | 86,144 | | Selling and Distribution Expenses | (1,615,934) | (1,593,979) | | Administrative Expenses | (283,402) | (201,196) | | Research and Development Costs | (547,523) | (476,230) | | Other Expenses | (25,466) | (40,687) | | Finance Costs | (53,002) | (104,351) | | Profit Before Tax | 1,621,697 | 1,421,868 | | Income Tax Expense | (233,123) | (314,283) | | Profit for the Period | 1,388,574 | 1,107,585 | | Profit Attributable to Owners of the Parent | 1,358,204 | 1,089,942 | | Non-Controlling Interests | 30,370 | 17,643 | | Basic Earnings Per Share | RMB 0.57 | RMB 0.45 | | Diluted Earnings Per Share | RMB 0.56 | RMB 0.45 | [Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period increased compared to the prior year, primarily driven by higher profit for the period, despite fluctuations in exchange differences Interim Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Profit for the Period | 1,388,574 | 1,107,585 | | Exchange Differences on Translation of Overseas Operations | (45,640) | 6,389 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income: Fair Value Changes | 31,496 | 48,473 | | Other Comprehensive Income for the Period, Net of Tax | (14,144) | 54,862 | | Total Comprehensive Income for the Period | 1,374,430 | 1,162,447 | | Total Comprehensive Income Attributable to Owners of the Parent | 1,344,060 | 1,144,804 | | Non-Controlling Interests | 30,370 | 17,643 | [Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets both increased, with a significant reduction in current liabilities, leading to substantial improvements in net current assets and current ratio Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 5,003,774 | 4,993,461 | | Goodwill | 4,237,631 | 4,252,618 | | Total Non-Current Assets | 14,000,000 | 14,865,806 | | **Current Assets** | | | | Inventories | 902,817 | 795,191 | | Trade and Bills Receivables | 1,490,704 | 1,305,160 | | Cash and Cash Equivalents | 1,723,977 | 2,142,651 | | Total Current Assets | 9,830,263 | 9,346,934 | | **Current Liabilities** | | | | Trade and Bills Payables | 217,250 | 179,561 | | Interest-Bearing Bank and Other Borrowings | 1,798,774 | 2,243,750 | | Bonds Payable | — | 1,226,098 | | Total Current Liabilities | 4,203,103 | 5,463,524 | | Net Current Assets | 5,627,160 | 3,883,410 | | Total Assets Less Current Liabilities | 19,627,160 | 18,749,216 | | **Non-Current Liabilities** | | | | Total Non-Current Liabilities | 683,839 | 712,886 | | **Equity** | | | | Net Assets | 18,943,321 | 18,036,330 | | Equity Attributable to Owners of the Parent | 16,319,393 | 15,436,258 | | Non-Controlling Interests | 2,623,928 | 2,600,072 | | Total Equity | 18,943,321 | 18,036,330 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering specific explanations and analyses of changes in company information, accounting policies, operating segments, revenue, expenses, taxes, dividends, earnings per share, balance sheet items, and borrowings [Company Information](index=6&type=section&id=Company%20Information) 3SBio is an investment holding company incorporated in the Cayman Islands, with shares listed on the Main Board of the Hong Kong Stock Exchange, primarily engaged in the development, manufacturing, marketing, and sales of biopharmaceutical products in mainland China - The company was incorporated as an exempted company in the Cayman Islands on August 9, 2006, and its shares were listed on the Main Board of the Hong Kong Stock Exchange on June 11, 2015[13](index=13&type=chunk) - For the six months ended June 30, 2025, the company and its subsidiaries were primarily engaged in the development, manufacturing, marketing, and sales of biopharmaceutical products in mainland China[13](index=13&type=chunk) [Basis of Preparation and Changes in Accounting Policies and Disclosures](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and consistent accounting policies with annual financial statements, with no significant impact from the first-time adoption of IAS 21 amendments during the period - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and presented in RMB, with all values rounded to the nearest thousand[14](index=14&type=chunk) - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2024, with only the first-time adoption of amended International Financial Reporting Standards[15](index=15&type=chunk) - The amendments to International Accounting Standard 21 "Lack of Exchangeability" had no impact on the interim condensed consolidated financial information, as the currencies used by the Group for transactions and functional currencies are all exchangeable[16](index=16&type=chunk) [Operating Segment Information](index=7&type=section&id=Operating%20Segment%20Information) The Group has only one operating segment: the development, manufacturing, marketing, and sales of biopharmaceutical products, with revenue and non-current assets primarily concentrated in mainland China and a diversified customer base without any single major customer - The Group has only one operating segment: the development, manufacturing, marketing, and sales of biopharmaceutical products[17](index=17&type=chunk) Geographical Distribution of Revenue from External Customers (For the Six Months Ended June 30) | Region | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 4,215,107 | 4,306,754 | | Other | 140,378 | 82,691 | | Total Revenue | 4,355,485 | 4,389,445 | Geographical Distribution of Non-Current Assets (As of June 30) | Region | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 10,059,737 | 10,169,932 | | Other | 2,093,239 | 1,960,625 | | Total Non-Current Assets | 12,152,976 | 12,130,557 | - The Group has a diversified customer base, with no single major customer accounting for **10% or more** of total transaction revenue[20](index=20&type=chunk) [Revenue Analysis](index=8&type=section&id=Revenue) The Group's revenue primarily derives from biopharmaceutical sales, with significant growth in contract development and manufacturing operations, and revenue recognition mainly occurs at a point in time when goods are transferred Revenue Analysis (For the Six Months Ended June 30) | Revenue Source | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Sales of Biopharmaceutical Products | 4,254,577 | 4,332,185 | | Contract Development and Manufacturing Operations | 100,908 | 57,260 | | Total | 4,355,485 | 4,389,445 | Disaggregated Revenue Information from Customer Contracts (For the Six Months Ended June 30) | Category | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | **Type of Goods or Services** | | | | Sales of Biopharmaceutical Products | 4,254,577 | 4,332,185 | | Contract Development and Manufacturing Operations | 100,908 | 57,260 | | **Geographical Markets** | | | | Mainland China | 4,215,107 | 4,306,754 | | Other | 140,378 | 82,691 | | **Timing of Revenue Recognition** | | | | Goods Transferred at a Point in Time | 4,254,577 | 4,332,185 | | Services Transferred at a Point in Time | 100,908 | 57,260 | [Other Income and Gains](index=9&type=section&id=Other%20Income%20and%20Gains) Other income and gains significantly increased this period, primarily driven by fair value gains on financial assets measured at fair value through profit or loss, alongside stable contributions from interest income and government grants Other Income and Gains Analysis (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | **Other Income** | | | | Interest Income | 83,937 | 81,224 | | Government Grants - Assets | 14,948 | 15,860 | | Government Grants - Income | 28,381 | 19,568 | | Other | 11,803 | 12,967 | | Total Other Income | 139,069 | 129,619 | | **Gains** | | | | Gain on Disposal of a Subsidiary | 2,614 | — | | Gain on Disposal of Intangible Assets | 79 | — | | Net Exchange Differences | 9,515 | 12,092 | | Fair Value Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss | 257,012 | (55,567) | | Total Gains | 269,220 | (43,475) | | Total Other Income and Gains | 408,289 | 86,144 | [Expense Analysis](index=10&type=section&id=Expense%20Analysis) Cost of inventories sold, depreciation, amortization, and employee benefit expenses all increased this period, with share-based payment expenses being a new item, while donations and losses on disposal of property, plant, and equipment decreased Items Deducted From/(Credited to) Profit Before Tax (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 564,704 | 535,261 | | Cost of Services Provided | 74,976 | 56,791 | | Depreciation of Property, Plant and Equipment | 163,933 | 122,759 | | Amortization of Other Intangible Assets | 57,836 | 53,361 | | Depreciation of Right-of-Use Assets | 12,837 | 11,269 | | Amortization of Long-Term Deferred Expenses | 7,089 | 9,069 | | Employee Benefit Expenses | 810,218 | 773,934 | | Share-Based Payment Expenses | 59,856 | — | | Donations | 4,061 | 17,531 | | Loss on Lease Termination | 236 | — | | Loss on Disposal of Property, Plant and Equipment | 8,333 | 12,533 | | Impairment (Reversal)/Provision for Trade Receivables | (1,933) | 799 | | Impairment Provision for Prepayments, Other Receivables and Other Assets | 5,717 | 4,494 | | Other | 9,052 | 5,330 | | Total (Other Expenses and Losses) | 25,466 | 40,687 | [Finance Costs](index=10&type=section&id=Finance%20Costs) Finance costs significantly decreased this period, primarily due to reduced interest expenses on bank borrowings Finance Costs Analysis (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 27,824 | 77,661 | | Interest on Bonds Payable | 24,307 | 25,132 | | Interest on Lease Liabilities | 871 | 1,558 | | Total | 53,002 | 104,351 | [Income Tax](index=11&type=section&id=Income%20Tax) The Group's income tax expense significantly decreased, and the effective tax rate declined, primarily benefiting from preferential tax rates for high-tech enterprises in mainland China and reduced non-deductible expenses - The company and its subsidiaries are **exempt from income tax** in the Cayman Islands and British Virgin Islands, and there was no assessable profit in Hong Kong[24](index=24&type=chunk) - Chinese subsidiaries (such as Shenyang 3SBio, Saibaoer Bio, 3SBio Mandi, Antibody Center, and 3SBio Guojian) qualify as high-tech enterprises, enjoying a **preferential income tax rate of 15%**, while other Chinese subsidiaries are taxed at **25%**[25](index=25&type=chunk)[26](index=26&type=chunk) - Sirton Pharmaceuticals S.p.A. is subject to income tax at a rate of **27.9%**[26](index=26&type=chunk) Income Tax Provision Analysis (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current | 199,935 | 308,218 | | Deferred | 33,188 | 6,065 | | Total Tax Expense for the Period | 233,123 | 314,283 | [Dividends](index=11&type=section&id=Dividends) The Board recommended a final dividend of HKD 25 cents per share for 2024, approved at the 2025 AGM, but not yet paid during the reporting period Dividends (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | 2024 Final - HKD 25 cents per share | 547,149 | — | | 2023 Final - HKD 25 cents per share | — | 551,834 | - The Board recommended a final dividend of **HKD 25 cents per share** for 2024 on March 25, 2025, which was approved at the Annual General Meeting on June 25, 2025, but had not yet been paid to shareholders during the reporting period[28](index=28&type=chunk) [Earnings Per Share Attributable to Owners of the Parent](index=12&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) Both basic and diluted earnings per share increased this period, reflecting the rise in profit attributable to owners of the parent Basis for Calculating Basic and Diluted Earnings Per Share (For the Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | **Profit** | | | | Profit Attributable to Ordinary Equity Holders of the Parent Used for Basic EPS Calculation | 1,358,204 | 1,089,942 | | **Number of Shares** | | | | Weighted Average Number of Ordinary Shares in Issue for Basic EPS Calculation | 2,397,136,743 | 2,429,790,687 | | Dilutive Effect - Weighted Average Number of Ordinary Shares: Share Options | 4,902,710 | — | | Dilutive Effect - Weighted Average Number of Ordinary Shares: Awarded Shares | 43,107,688 | 2,750,000 | | Total (Diluted Weighted Average Number) | 2,445,147,141 | 2,432,540,687 | - Basic earnings per share was **RMB 0.57** (2024: RMB 0.45), and diluted earnings per share was **RMB 0.56** (2024: RMB 0.45)[5](index=5&type=chunk)[10](index=10&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=Property%2C%20Plant%20and%20Equipment) The Group's carrying value of property, plant and equipment slightly increased, primarily due to additions, partially offset by depreciation and disposals, with some land and buildings pledged for bank financing Changes in Carrying Value of Property, Plant and Equipment (As of June 30) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Carrying Value at January 1 | 4,993,461 | 4,692,152 | | Additions | 167,631 | 591,493 | | Depreciation Charged During the Period/Year | (163,933) | (259,729) | | Disposals | (11,726) | (23,651) | | Exchange Adjustments | 18,341 | (6,804) | | Carrying Value at June 30/December 31 | 5,003,774 | 4,993,461 | - As of June 30, 2025, approximately **RMB 2,938,000** of freehold land is located in Italy[31](index=31&type=chunk) - Certain freehold land and buildings of the Group, with a total carrying value of approximately **RMB 2,938,000** and **RMB 33,143,000** respectively, have been pledged as collateral for bank financing[32](index=32&type=chunk) [Trade and Bills Receivables](index=13&type=section&id=Trade%20and%20Bills%20Receivables) The Group's net trade and bills receivables increased, with credit terms generally two to three months, maintained under strict control, and no significant concentration of credit risk Trade and Bills Receivables Analysis (As of June 30) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Receivables | 1,462,346 | 1,312,969 | | Bills Receivables | 79,808 | 45,574 | | Total | 1,542,154 | 1,358,543 | | Impairment Provision for Trade Receivables | (51,450) | (53,383) | | Net Carrying Amount | 1,490,704 | 1,305,160 | - The Group's trade terms with customers are primarily on credit, with a general credit period of **two months**, extendable to a maximum of **three months** for major customers[33](index=33&type=chunk) Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 Year | 1,403,616 | 1,260,527 | | 1 to 2 Years | 12,188 | 7,530 | | Over 2 Years | 46,542 | 44,912 | | Total | 1,462,346 | 1,312,969 | [Cash and Cash Equivalents and Pledged Deposits](index=14&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Pledged%20Deposits) The Group's total cash and cash equivalents slightly increased, primarily denominated in RMB, USD, and EUR, with some deposits pledged to provide security Cash and Cash Equivalents and Pledged Deposits Analysis (As of June 30) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank Balances and Cash on Hand | 1,413,284 | 1,618,397 | | Restricted Cash | 310,693 | 524,254 | | Unpledged Time Deposits | 868,231 | 1,621,381 | | Time Deposits with Original Maturity Over Three Months | 1,642,318 | 406,492 | | Pledged Deposits | 134,230 | 178,568 | | Subtotal | 4,368,756 | 4,349,092 | | Cash and Cash Equivalents | 1,723,977 | 2,142,651 | Currency Denomination of Cash and Cash Equivalents and Deposits (As of June 30) | Currency | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | RMB | 2,657,932 | 2,953,324 | | HKD | 63,985 | 39,986 | | USD | 1,472,441 | 1,211,301 | | EUR | 174,157 | 144,315 | | JPY | 15 | 2 | | AUD | 226 | 163 | | GBP | — | 1 | | Total | 4,368,756 | 4,349,092 | - As of June 30, 2025, approximately **RMB 134,230,000** of deposits were pledged to secure letters of credit, bank acceptance bills, pending litigation, and arbitration[37](index=37&type=chunk) [Trade and Bills Payables](index=15&type=section&id=Trade%20and%20Bills%20Payables) The Group's total trade and bills payables increased, primarily concentrated within three months maturity, and are non-interest bearing Ageing Analysis of Trade and Bills Payables (As of June 30) | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 3 Months | 162,070 | 152,171 | | 3 to 6 Months | 49,132 | 24,752 | | Over 6 Months | 6,048 | 2,638 | | Total | 217,250 | 179,561 | - Trade and bills payables are **non-interest bearing** and repayable within the normal operating cycle or on demand[38](index=38&type=chunk) [Interest-bearing Bank and Other Borrowings](index=16&type=section&id=Interest-bearing%20Bank%20and%20Other%20Borrowings) The Group's total interest-bearing bank and other borrowings significantly decreased, primarily due to loan repayments, with borrowings denominated in RMB, HKD, and EUR, and some secured Interest-Bearing Bank and Other Borrowings Analysis (As of June 30) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | **Current** | | | | Bank Loans - Unsecured | 400,239 | 1,993,750 | | Bank Loans - Secured | 1,398,535 | 250,000 | | Subtotal - Current | 1,798,774 | 2,243,750 | | Bonds Payable | — | 1,226,098 | | Total - Current | 1,798,774 | 3,469,848 | | **Non-Current** | | | | Bank Loans - Secured | 37,811 | 37,628 | | Total - Non-Current | 37,811 | 37,628 | | Total | 1,836,585 | 3,507,476 | Currency Denomination of Interest-Bearing Bank Borrowings (As of June 30) | Currency | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | RMB | 1,798,774 | 800,374 | | HKD | — | 721,367 | | EUR | 37,811 | 759,637 | | Total | 1,836,585 | 2,281,378 | - Bank borrowings bear interest at fixed annual rates ranging from **1.70% to 2.75%** (December 31, 2024: 2.10% to 3.03%)[42](index=42&type=chunk) - Certain bank borrowings of the Group are secured by mortgages over its own land and buildings[42](index=42&type=chunk) [Bonds Payable](index=17&type=section&id=Bonds%20Payable) The Group redeemed RMB 1,200,000,000 of unsecured unlisted Panda bonds during the reporting period, resulting in no outstanding bonds as of June 30, 2025 - The company issued unsecured unlisted Panda bonds totaling **RMB 1,200,000,000** on June 26, 2023, bearing a fixed annual interest rate of **4.20%**[40](index=40&type=chunk) - The company redeemed these bonds on June 25, 2025, thus having **no outstanding bonds payable** as of June 30, 2025[40](index=40&type=chunk)[41](index=41&type=chunk) [Share Capital](index=18&type=section&id=Share%20Capital) Issued share capital slightly increased this period due to the exercise of share options, while the declared 2024 final dividend was paid from the share premium account Overview of Changes in Issued Share Capital (For the Six Months Ended June 30, 2025) | Item | Number of Shares Issued | Share Capital (RMB Thousand) | Share Premium (RMB Thousand) | Total (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | | As of December 31, 2024 and January 1, 2025 | 2,395,573,912 | 146 | 2,729,341 | 2,729,487 | | Shares Issued Upon Exercise of Share Options | 4,012,500 | —* | 40,409 | 40,409 | | 2024 Final Dividend Declared | — | — | (547,149) | (547,149) | | As of June 30, 2025 | 2,399,586,412 | 146 | 2,222,601 | 2,222,747 | - The company paid the 2024 final dividend from the share premium account[44](index=44&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section elaborates on the company's business performance, key strategic collaborations, R&D progress, core product market position, CDMO business development, sales and marketing strategies, and future industry outlook, alongside an in-depth analysis of financial data [Business Review](index=19&type=section&id=Business%20Review) As a leading biotechnology company in China, the Group possesses extensive experience in R&D, manufacturing, and marketing biopharmaceutical products, with core products holding leading market shares, continuously expanding its pipeline and therapeutic areas through strategic collaborations and independent R&D [Overview](index=19&type=section&id=Overview) 3SBio is a leading biotechnology company in China with extensive experience in biopharmaceutical R&D, manufacturing, and marketing, featuring core commercialized products like TPIAO, EPIAO, SAIBOER, Yisaipu, Saiputing, and Mandi, holding dominant market positions in various therapeutic areas - **TPIAO** is the world's only commercialized recombinant human thrombopoietin (rhTPO) product, holding a **63.0% market share** in mainland China's thrombocytopenia treatment market in H1 2025[45](index=45&type=chunk) - **EPIAO** and **SAIBOER**, two rhEPO products, have made the Group a leader in mainland China's rhEPO market for over two decades, collectively holding a **41.5% market share** in H1 2025[45](index=45&type=chunk) - **Yisaipu** was the first tumor necrosis factor (TNF) α inhibitor product launched in mainland China, and **Mandi** also holds a dominant position in mainland China's minoxidil market[45](index=45&type=chunk) [Significant Events](index=19&type=section&id=Significant%20Events) This period, the company achieved significant progress in HER2 ADC drug collaboration, 707 injection breakthrough therapy designation, and a global licensing agreement and new share subscription with Pfizer, substantially enhancing its R&D capabilities and international influence - A collaboration agreement was reached with RemeGen for the HER2 ADC drug **DB-1303**, granting Shenyang 3SBio commercialization rights in mainland China, Hong Kong, and Macau[46](index=46&type=chunk) - The self-developed **707 injection** (anti-VEGF/PD-1 bispecific antibody) was granted breakthrough therapy designation by China's NMPA for first-line treatment of PD-L1 positive locally advanced or metastatic small cell lung cancer[47](index=47&type=chunk) - An exclusive licensing agreement was signed with Pfizer, granting Pfizer global development, manufacturing, and commercialization rights for 707 outside mainland China; the Group will receive an **upfront payment of USD 1,250 million** and up to **USD 4,800 million** in potential milestone payments, plus double-digit tiered royalties[50](index=50&type=chunk)[51](index=51&type=chunk) - Pfizer subscribed for **31,142,500 ordinary shares** of the company, generating approximately **HKD 785.0 million** in proceeds, with **80%** allocated to enriching the global R&D pipeline and improving manufacturing facilities, and **20%** for other general corporate purposes[54](index=54&type=chunk) [Core Product Performance](index=22&type=section&id=Core%20Product%20Performance) The Group's core products TPIAO, EPIAO, Yisaipu, Saiputing, and Mandi maintain leading positions in their respective markets, continuously consolidating and expanding market share through strategies like medical insurance coverage, clinical guideline recommendations, new formulation development, and market education [TPIAO](index=22&type=section&id=TPO) TPIAO, as the world's only commercialized rhTPO product, demonstrates significant efficacy in treating chemotherapy-induced thrombocytopenia (CIT), primary immune thrombocytopenia (ITP), and pediatric ITP, included in the National Medical Insurance Catalog and multiple clinical guidelines, with substantial future growth potential - **TPIAO** is the world's only commercialized rhTPO product, approved for treating CIT, ITP, and pediatric ITP, and has been included in the Class B of the **National Medical Insurance Catalog** since 2017[56](index=56&type=chunk)[57](index=57&type=chunk) - In H1 2025, TPIAO accounted for **63.0%** of mainland China's thrombocytopenia treatment market by sales value and **30.1%** by sales volume[58](index=58&type=chunk) - The Phase III clinical study of TPIAO for treating chronic liver disease-related thrombocytopenia patients reached its primary endpoint, and a marketing application was submitted to the NMPA in August 2024[58](index=58&type=chunk) [EPIAO](index=23&type=section&id=Epiao) EPIAO, an rhEPO product, is approved for anemia caused by chronic kidney disease, chemotherapy-induced anemia, and perioperative red blood cell mobilization, included in the National Medical Insurance Catalog since 2000, and holds a dominant position in mainland China's rhEPO market - **EPIAO** is approved for anemia caused by CKD, CIA, and perioperative red blood cell mobilization, and has been included in the Class B of the **National Medical Insurance Catalog** since 2000[60](index=60&type=chunk) - EPIAO has maintained a superior dominant position in mainland China's rhEPO market since 2002[60](index=60&type=chunk) - EPIAO is currently undergoing registration in multiple countries across Asia, Africa, Europe, South America, and North America[60](index=60&type=chunk) [Yisaipu](index=23&type=section&id=Yisaipu) Yisaipu, mainland China's first TNFα inhibitor, treats rheumatoid arthritis (RA), ankylosing spondylitis (AS), and psoriasis, is included in the National Medical Insurance Catalog and professional guidelines, with pre-filled syringe launch enhancing market competitiveness - **Yisaipu** was first launched in mainland China in 2005 for RA, with indications later expanded to AS and psoriasis, and has been included in the Class B of the **National Medical Insurance Catalog** since 2017[61](index=61&type=chunk) - Yisaipu is the first TNFα inhibitor product launched in mainland China, with its efficacy and safety validated in the Chinese market over **twenty years**[61](index=61&type=chunk) - The launch of Yisaipu pre-filled syringes in 2023 provides convenience for patients and enhances overall market competitiveness[62](index=62&type=chunk) [Saiputing](index=24&type=section&id=Saiputing) Saiputing, mainland China's first Fc-modified and process-optimized innovative anti-HER2 monoclonal antibody, is approved for HER2-positive metastatic breast cancer in combination with chemotherapy, included in the National Medical Insurance Catalog and clinical guidelines, showing positive progress in early neoadjuvant and pan-HER2 fields - **Saiputing** is mainland China's first Fc-modified and process-optimized innovative anti-HER2 monoclonal antibody, approved in June 2020 for treating HER2-positive metastatic breast cancer[63](index=63&type=chunk) - Saiputing has been included in the **National Medical Insurance Catalog** since 2020 and is incorporated into multiple clinical guidelines and expert consensuses[63](index=63&type=chunk) - Saiputing has achieved positive research progress in early neoadjuvant therapy, advanced HER2-positive breast cancer treatment, and pan-HER2 applications[63](index=63&type=chunk) [Mandi](index=24&type=section&id=Mandi) Mandi, mainland China's first OTC hair loss drug, is the only topical over-the-counter medication globally approved by FDA and NMPA for male and female hair loss, holding a major share in China's minoxidil market, with future growth driven by market education, digital marketing, and new product specifications - **Mandi** was launched in 2001 as mainland China's first OTC hair loss drug and is the only topical over-the-counter medication globally approved by the FDA and NMPA for treating male and female hair loss[64](index=64&type=chunk) - Mandi has received the **highest recommendation level** in both the "Chinese Guidelines for the Diagnosis and Treatment of Androgenetic Alopecia" and the "Chinese Expert Consensus on the Diagnosis and Treatment of Female Androgenetic Alopecia"[64](index=64&type=chunk) - In H1 2025, Mandi continued to hold a major share in mainland China's minoxidil market, with future growth relying on continuous market education, professional digital marketing systems, and the launch of new product specifications[65](index=65&type=chunk) [CDMO Business](index=25&type=section&id=CDMO%20Business) The Group's CDMO business, comprising Desheng Bio, Shanghai Shengguo Pharmaceutical Development Co., Ltd., Guangdong 3SBio, and Sirton, aims to build international-standard biopharmaceutical CDMO, raw material, and consumable manufacturing bases, specializing in GCT services - The Group's CDMO business is jointly composed of subsidiaries including Desheng Bio, Shanghai Shengguo Pharmaceutical Development Co., Ltd., Guangdong 3SBio, and Sirton in Italy[66](index=66&type=chunk) - Desheng Bio aims to establish a leading domestic and internationally oriented biopharmaceutical CDMO base, biopharmaceutical raw materials and consumables manufacturing base, and biopharmaceutical core process equipment base, all compliant with Chinese, EU, and US GMP regulations[66](index=66&type=chunk) - Guangdong 3SBio focuses on services in the **GCT (Gene and Cell Therapy)** field[66](index=66&type=chunk) [Research and Development](index=25&type=section&id=Research%20and%20Development) The Group possesses an integrated R&D platform and a team of nearly 800 scientists, focusing on innovative biopharmaceutical product development, with 30 key pipeline products in nephrology, oncology, autoimmune, and inflammatory diseases, achieving significant progress across multiple clinical stages [R&D Platform and Strategy](index=25&type=section&id=R%26D%20Platform%20and%20Strategy) The Group's integrated R&D platform covers extensive expertise from antibody discovery to clinical trial management and regulatory filing, with rich experience in developing pharmaceutical products via mammalian cell expression, bacterial expression, and chemical synthesis, focusing on innovative biopharmaceutical products - The Group's integrated R&D platform encompasses a wide range of expertise for discovering and developing various innovative macromolecule and small molecule products, including antibody discovery, molecular cloning, antibody/protein engineering, gene expression, cell line construction, process development, pilot and large-scale production, quality control and assurance, preclinical and clinical trial design and management, and regulatory filing and registration[67](index=67&type=chunk) - The Group has extensive experience in developing various pharmaceutical products, including mammalian cell expression, bacterial expression, and chemical synthesis, with a focus on innovative biopharmaceutical products[67](index=67&type=chunk) - The Group has multiple leading biological products at different clinical development stages in nephrology, oncology, autoimmune and inflammatory diseases, ophthalmology, dermatology, and metabolic diseases[67](index=67&type=chunk) [Pipeline Products](index=26&type=section&id=Pipeline%20Products) As of June 30, 2025, the Group has 30 key pipeline products, 27 of which are developed as innovative drugs in mainland China, covering hematology/oncology, autoimmune diseases, ophthalmic diseases, nephrology, dermatology, and metabolic diseases - As of June 30, 2025, among the **30 key products** actively developed by the Group, **27** are developed as innovative drugs in mainland China, including **18 antibody drugs**, **6 other biological products**, and **6 small molecule drugs**[69](index=69&type=chunk) - Pipeline products cover hematology/oncology (**14 items**), autoimmune diseases/ophthalmic diseases/other diseases (**10 items**), nephrology (**3 items**), dermatology (**2 items**), and metabolic diseases (**1 item**)[69](index=69&type=chunk) - The Group has laid out multiple early-stage research projects in hematology, oncology, and autoimmune fields, covering over a dozen innovative targets for long-term strategic reserves[73](index=73&type=chunk) [Key R&D Progress](index=27&type=section&id=Key%20R%26D%20Progress) The Group achieved significant progress in clinical trials for multiple pipeline products, including several New Drug Application (NDA) submissions, active advancement of multiple Phase III, Phase II, and Phase I clinical trials, and US FDA IND approvals [New Drug Application (NDA) Submission](index=27&type=section&id=New%20Drug%20Application%20(NDA)%20Submission) The Group completed Phase III clinical trials and submitted NDAs for second-generation recombinant rhEPO (SSS06) for chronic renal anemia, and anti-IL-17A mAb (608) and anti-IL-1β mAb (613) also successfully completed Phase III clinical trials and submitted NDAs - **NuPIAO** (second-generation recombinant rhEPO, SSS06) NDA for treating anemia in chronic renal failure is under review, and Phase II clinical study for chemotherapy-induced anemia (CIA) is ongoing[74](index=74&type=chunk) - The Phase III clinical trial of anti-IL-17A mAb (**608**) for moderate-to-severe plaque psoriasis patients successfully met all efficacy endpoints, and the NDA was submitted and accepted in November 2024[74](index=74&type=chunk) - The Phase III clinical trial of anti-IL-1β mAb (**613**) for acute gouty arthritis (AG) has been completed, and the NDA was submitted and accepted in June 2025[75](index=75&type=chunk) [Phase III R&D](index=27&type=section&id=Phase%20III%20R%26D) Multiple products' Phase III clinical trials are progressing smoothly, including anti-VEGF mAb (601A) expected NDA submission, Collatrone (WS204) planned trial completion and NDA submission, and positive results for anti-IL-4Rα mAb (611) and Semaglutide injection Phase III trials - The Phase III clinical trial of anti-VEGF mAb (**601A**) for BRVO has been completed, with an NDA submission expected in 2025[76](index=76&type=chunk) - Patient enrollment for the Phase III bridging clinical trial of **Collatrone (WS204)** for moderate-to-severe acne vulgaris has been completed, with trial completion and NDA submission planned for 2025[76](index=76&type=chunk) - The Phase III clinical trial of anti-IL-4Rα mAb (**611**) for adult atopic dermatitis patients successfully met its primary endpoint, and patient enrollment for the Phase III clinical trial for CRSwNP has been completed[77](index=77&type=chunk) - Patient enrollment for the Phase III clinical trial of **Semaglutide injection** for weight loss indication was completed in February 2025, and data evaluation and marketing application processes are currently underway after treatment administration[78](index=78&type=chunk) [Phase II R&D](index=28&type=section&id=Phase%20II%20R%26D) HIF-117 (SSS17) is actively undergoing Phase II clinical trials in non-dialysis chronic renal anemia patients and approved for postoperative anemia Phase II trials; patient enrollment for anti-NGF antibody (SSS40), anti-PD-1/HER2 bispecific antibody (705), and anti-PD-1/PD-L1 bispecific antibody (706) Phase II clinical trials is ongoing - **HIF-117 (SSS17)** is actively undergoing Phase II clinical trials in non-dialysis chronic renal anemia patients, with Phase II trial completion and Phase III trial initiation planned for 2025[79](index=79&type=chunk) - Patient enrollment for the Phase II clinical trial of anti-NGF antibody (**SSS40**) for treating moderate-to-severe cancer pain with bone metastasis is ongoing[79](index=79&type=chunk) - Patient enrollment for the Phase II clinical trial of anti-PD-1/HER2 bispecific antibody (**705**) for HER-2 positive advanced solid tumors in mainland China is ongoing, and IND approval has been obtained from the US FDA[80](index=80&type=chunk) - The Phase II clinical trial of anti-PD-1/PD-L1 bispecific antibody (**706**) for treating advanced solid tumors is ongoing[80](index=80&type=chunk) [Phase I R&D and New IND Applications](index=28&type=section&id=Phase%20I%20R%26D%20and%20New%20IND%20Applications) Rapamycin nanoparticles (SSS39) Phase I clinical trial is ongoing; Pegsiticase (SSS11) completed Phase Ib, with Sobi advancing SEL-212 BLA; anti-BDCA2 antibody (626), anti-TL1A antibody (627), anti-PD-1/TGF-β bispecific antibody (708), anti-MUC17/CD3/CD28 trispecific antibody (SSS59), and anti-B7H3 antibody/IL15Rα-IL15 fusion protein (SPGL008) all show progress in Phase I trials or IND applications - The Phase I clinical trial of **Rapamycin nanoparticles (SSS39)** is ongoing, expected to be completed in 2025[81](index=81&type=chunk) - **Pegsiticase (SSS11)** has completed its Phase Ib clinical trial in mainland China, and partner Sobi submitted a rolling Biologics License Application (BLA) to the US FDA in July 2024[82](index=82&type=chunk) - Patient enrollment for the Phase Ia clinical trial of anti-BDCA2 antibody (**626**) in mainland China has been completed, showing good safety and PK/PD data, and the US IND application has also been approved[82](index=82&type=chunk) - The Phase I clinical trial of anti-TL1A antibody (**627**) for ulcerative colitis (UC) is recruiting patients, and the US IND application has also been approved by the US FDA[83](index=83&type=chunk) - Phase I clinical trials for anti-PD-1/TGF-β bispecific antibody (**708**), anti-MUC17/CD3/CD28 trispecific antibody (**SSS59**), and anti-B7H3 antibody/IL15Rα-IL15 fusion protein (**SPGL008**) for treating advanced solid tumors are ongoing[83](index=83&type=chunk) [Sales, Marketing and Distribution](index=29&type=section&id=Sales%2C%20Marketing%20and%20Distribution) The Group sells products through its own team and extensive sales and distribution network in nearly 3,000 tertiary hospitals and 7,000 secondary or lower-tier hospitals in mainland China, exports to 20 countries, and Mandi is also sold via retail pharmacies and online stores - The Group's sales and marketing activities particularly emphasize academic promotion, primarily marketing and promoting its main products through its **own team**[84](index=84&type=chunk) - As of June 30, 2025, the Group has an extensive sales and distribution network in mainland China, comprising **3,054 sales and marketing personnel**, thousands of distributors, and third-party promoters[85](index=85&type=chunk) - The Group's products are sold in nearly **3,000 tertiary hospitals** and **7,000 secondary or lower-tier hospitals** and medical institutions, and exported to **20 countries**[85](index=85&type=chunk) [Industry Outlook and Strategy](index=30&type=section&id=Industry%20Outlook%20and%20Strategy) China's pharmaceutical payment system is shifting towards diversified collaboration, supporting innovative drugs and devices; the Group's bispecific antibody SSGJ-707 deal with Pfizer, exceeding USD 6 billion, set records for upfront and total payments in Chinese innovative drug overseas licensing, reflecting international recognition; for H2, the Group will accelerate innovative drug R&D, advance market access for newly approved products, and continue its dual strategy of independent R&D and external collaboration, seeking global partners - China's pharmaceutical payment system is transitioning from "single medical insurance payment" to "multi-party coordinated payment by medical insurance and commercial insurance," opening new payment channels for innovative drugs and devices; the National Healthcare Security Administration issued the "2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog and Commercial Health Insurance Innovative Drug Catalog Adjustment Work Plan," establishing a tiered payment pathway for innovative drugs[86](index=86&type=chunk) - In H1 2025, the transaction value of Chinese innovative drug overseas licensing reached **USD 60.8 billion**; the Group's bispecific antibody product **SSGJ-707** achieved a deal with Pfizer totaling over **USD 6 billion**, with an upfront payment of **USD 1.25 billion**, setting a record for upfront payments in Chinese innovative drug overseas licensing[87](index=87&type=chunk) - Looking ahead to H2, the Group will continue to accelerate early-stage research and clinical development of innovative drugs, especially in oncology, autoimmune, and nephrology fields, and promote market access and academic promotion for newly approved products (such as TAIXIAN® and BAIRUISU®)[88](index=88&type=chunk) - The Group will continue to implement a dual strategy of independent R&D and external collaboration, identifying potential innovative drug collaboration targets, and actively seeking global partners to jointly advance the global development of pipeline products[88](index=88&type=chunk) [Financial Review](index=31&type=section&id=Financial%20Review) This section provides a detailed analysis of key financial indicators for the reporting period, including revenue, costs, gross profit, various expenses, income tax, EBITDA, and net profit, explaining the reasons for their changes [Revenue](index=31&type=section&id=Revenue_FinancialReview) Total revenue slightly decreased this period, primarily due to reduced sales of TPIAO and EPIAO/SAIBOER, but revenue from hair loss products (Mandi) and CDMO business achieved significant growth Revenue Changes (For the Six Months Ended June 30) | Product/Business | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 4,355.5 | 4,389.4 | (33.9) | (0.8%) | | TPIAO Sales | 2,371.2 | 2,475.9 | (104.7) | (4.2%) | | EPIAO and SAIBOER Sales | 455.4 | 515.7 | (60.3) | (11.7%) | | Hair Loss Segment Sales | 689.9 | 557.2 | 132.7 | 23.8% | | Mandi Sales | 681.5 | 549.8 | 131.7 | 24.0% | | CDMO Business Revenue | 100.9 | 57.3 | 43.6 | 76.1% | | Other Sales | 770.8 | 805.0 | (34.2) | (4.2%) | - TPIAO sales accounted for approximately **54.4%** of the Group's total revenue, EPIAO and SAIBOER combined sales accounted for approximately **10.5%**, and hair loss segment sales accounted for approximately **15.8%**[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) [Cost of Sales](index=32&type=section&id=Cost%20of%20Sales) Cost of sales increased this period, primarily due to higher sales volume of higher-cost products, leading to an increased proportion of total revenue Cost of Sales (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 639.7 | 592.1 | 47.6 | 8.0% | | % of Total Revenue | 14.7% | - | - | - | - The increase in cost of sales was primarily due to the higher sales volume of higher-cost products in the reporting period compared to the same period in 2024[93](index=93&type=chunk) [Gross Profit](index=32&type=section&id=Gross%20Profit) Both gross profit and gross margin decreased this period, reflecting changes in revenue structure and costs Gross Profit (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 3,715.8 | 3,797.4 | (81.6) | (2.1%) | | Gross Profit Margin | 85.3% | 86.5% | -1.2% | - | [Other Income and Gains](index=32&type=section&id=Other%20Income%20and%20Gains_FinancialReview) Other income and gains significantly increased this period, primarily benefiting from fair value changes in financial assets measured at fair value through profit or loss Other Income and Gains (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other Income and Gains | 408.3 | 86.1 | 322.2 | 374.2% | - The increase was primarily due to fair value changes in financial assets measured at fair value through profit or loss during the reporting period[95](index=95&type=chunk) [Selling and Distribution Expenses](index=33&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses slightly increased this period, with its ratio to revenue also rising Selling and Distribution Expenses (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 1,615.9 | 1,594.0 | 21.9 | 1.4% | | % of Revenue | 37.1% | 36.3% | 0.8% | - | [Administrative Expenses](index=33&type=section&id=Administrative%20Expenses) Administrative expenses significantly increased this period, primarily due to higher share-based compensation, leading to a notable rise in its ratio to revenue Administrative Expenses (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 283.4 | 201.2 | 82.2 | 40.9% | | % of Revenue | 6.5% | 4.6% | 1.9% | - | - The increase in administrative expenses was primarily due to higher share-based compensation[97](index=97&type=chunk) [Research and Development Costs](index=33&type=section&id=Research%20and%20Development%20Costs) R&D costs continued to increase this period, primarily due to accelerated R&D project advancement, with its ratio to revenue also rising Research and Development Costs (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and Development Costs | 547.5 | 476.2 | 71.3 | 15.0% | | % of Revenue | 12.6% | 10.8% | 1.8% | - | - The increase in research and development costs was primarily due to the accelerated advancement of the Group's R&D projects[98](index=98&type=chunk) [Other Expenses and Losses](index=33&type=section&id=Other%20Expenses%20and%20Losses) Other expenses and losses decreased this period, primarily due to reduced donation expenditures Other Expenses and Losses (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other Expenses and Losses | 25.5 | 40.7 | (15.2) | (37.3%) | - The decrease was primarily due to reduced donation expenditures[99](index=99&type=chunk) [Finance Costs](index=34&type=section&id=Finance%20Costs_FinancialReview) Finance costs significantly decreased this period, primarily due to reduced interest-bearing bank borrowings Finance Costs (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 53.0 | 104.4 | (51.4) | (49.2%) | - The decrease was primarily due to reduced interest-bearing bank borrowings during the reporting period[100](index=100&type=chunk) [Income Tax Expense](index=34&type=section&id=Income%20Tax%20Expense) Income tax expense significantly decreased this period, with a lower effective tax rate, primarily due to reduced non-deductible expenses Income Tax Expense (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expense | 233.1 | 314.3 | (81.2) | (25.8%) | | Effective Tax Rate | 14.4% | 22.1% | -7.7% | - | - The decrease in the effective tax rate was primarily due to reduced non-deductible expenses in the reporting period compared to the same period in 2024[101](index=101&type=chunk) [EBITDA and Profit Attributable to Owners of the Parent](index=34&type=section&id=EBITDA%20and%20Profit%20Attributable%20to%20Owners%20of%20the%20Parent) Both EBITDA and profit attributable to owners of the parent increased this period, while adjusted non-operating EBITDA slightly decreased EBITDA and Net Profit (For the Six Months Ended June 30) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | EBITDA | 1,832.5 | 1,641.5 | 191.0 | 11.6% | | Adjusted Non-Operating EBITDA | 1,610.1 | 1,663.9 | (53.8) | (3.2%) | | Profit Attributable to Owners of the Parent | 1,358.2 | 1,089.9 | 268.3 | 24.6% | | Adjusted Non-Operating Profit Attributable to Owners of the Parent | 1,135.8 | 1,112.4 | 23.4 | 2.1% | [Earnings Per Share](index=34&type=section&id=Earnings%20Per%20Share_FinancialReview) Basic earnings per share significantly increased this period, reflecting the company's enhanced profitability Basic Earnings Per Share (For the Six Months Ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.57 | 0.45 | 26.7% | [Liquidity, Financial and Capital Resources](index=35&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) The Group maintains ample liquidity, with significant improvements in net current assets and current ratio, and a decrease in leverage ratio; capital expenditures for the next three years are projected for facility maintenance and capacity expansion, funded by internal resources and bank borrowings [Financial Assets Measured at Fair Value](index=35&type=section&id=Financial%20Assets%20Measured%20at%20Fair%20Value) As of June 30, 2025, the Group's financial assets measured at fair value primarily include bank wealth management products, listed and private equity fund investments - Financial assets measured at fair value primarily include bank wealth management products, investments in several listed companies, and private equity funds focused on the healthcare industry[105](index=105&type=chunk) [Net Current Assets](index=35&type=section&id=Net%20Current%20Assets) The Group's net current assets and current ratio significantly increased, primarily due to reduced interest-bearing bank borrowings and repayment of Panda bonds, leading to lower current liabilities Net Current Assets and Current Ratio (As of June 30) | Indicator | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | | :--- | :--- | :--- | | Net Current Assets | 5,627.2 | 3,883.4 | | Current Ratio | 2.3 | 1.7 | - The increase in net current assets and current ratio was primarily due to reduced interest-bearing bank borrowings and the repayment of Panda bonds, leading to a decrease in current liabilities in 2025[107](index=107&type=chunk) [Funding and Treasury Policy, Borrowings and Asset Pledges](index=35&type=section&id=Funding%20and%20Treasury%20Policy%2C%20Borrowings%20and%20Asset%20Pledges) The Group maintains a prudent funding and treasury policy, expecting to finance working capital and capital needs through internal and external financing; total interest-bearing bank borrowings decreased this period, with no outstanding Panda bonds - The company expects to fund its working capital and other capital requirements through a combination of sources, including internal financing and external financing at reasonable market interest rates[108](index=108&type=chunk) Total Interest-Bearing Bank Borrowings (As of June 30) | Indicator | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | | :--- | :--- | :--- | | Total Interest-Bearing Bank Borrowings | 1,836.6 | 2,281.4 | - The decrease in bank borrowings primarily reflects loan repayments of **RMB 2,602.0 million** during the reporting period, partially offset by new bank borrowings of approximately **RMB 2,100.0 million**[109](index=109&type=chunk) - As of June 30, 2025, the Group had **no outstanding Panda bonds**[110](index=110&type=chunk) [Leverage Ratio](index=36&type=section&id=Leverage%20Ratio) The Group's leverage ratio significantly decreased, primarily due to the repayment of outstanding Panda bonds Leverage Ratio (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Leverage Ratio | 9.9% | 19.7% | - The decrease in the leverage ratio was primarily due to the repayment of outstanding Panda bonds during the reporting period[111](index=111&type=chunk) [Contingent Liabilities](index=36&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[112](index=112&type=chunk) [Contractual Obligations](index=36&type=section&id=Contractual%20Obligations) The Group's capital commitments slightly decreased Capital Commitments (As of June 30) | Indicator | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | | :--- | :--- | :--- | | Capital Commitments | 876.1 | 901.9 | [Foreign Exchange and Exchange Rate Risk](index=36&type=section&id=Foreign%20Exchange%20and%20Exchange%20Rate%20Risk) The Group primarily operates in mainland China, with daily business conducted in RMB, and no other significant direct foreign exchange fluctuation risks, except for Sirton's operations, exports, international transaction expenses, and foreign currency-denominated bank borrowings/deposits - The Group primarily operates in mainland China, with daily business conducted in RMB, and has no other significant direct foreign exchange fluctuation risks, except for Sirton's operations, the Group's exports, potential international transaction expenses, and bank borrowings and deposits denominated in foreign currencies[114](index=114&type=chunk) - As of June 30, 2025, the Group's bank deposits denominated in foreign currencies primarily included approximately **USD 205.7 million**, **HKD 70.2 million**, and **EUR 20.7 million**[114](index=114&type=chunk) [Major Acquisitions and Disposals](index=36&type=section&id=Major%20Acquisitions%20and%20Disposals) During the reporting period, the Group had no major acquisitions or disposals of subsidiaries, associates, and joint ventures, nor any significant investments - During the reporting period, the Group had **no major acquisitions or disposals** of subsidiaries, associates, and joint ventures[115](index=115&type=chunk) - As of June 30, 2025, the Group had **no significant investments**[116](index=116&type=chunk) [Future Plans for Major Investments or Capital Assets](index=37&type=section&id=Future%20Plans%20for%20Major%20Investments%20or%20Capital%20Assets) The Group projects total capital expenditures of RMB 800 million to RMB 1,000 million over the next three years, primarily for maintaining existing facilities and expanding capacity, funded by internally generated funds and bank borrowings - The Group estimates total capital expenditures of between **RMB 800 million and RMB 1,000 million** over the next three years[117](index=117&type=chunk) - This anticipated capital expenditure will primarily be used for maintaining the Group's existing facilities and expanding production capacity[117](index=117&type=chunk) - The Group expects to fund its capital expenditures through a combination of internally generated funds and bank borrowings[117](index=117&type=chunk) [Employees and Remuneration Policy](index=37&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's employee headcount and staff costs increased; remuneration packages include salaries, bonuses, equity incentives, and allowances, with new share award and share option schemes adopted in June 2025 to incentivize employee contributions Employee Headcount and Staff Costs (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Employees | 6,268 | 5,577 | | Staff Costs (RMB Million) | 809.8 | 721.9 | - The Group's remuneration packages typically include salaries, bonuses, equity incentives, and allowances, with salary plans linking employee compensation and rewards to their performance[118](index=118&type=chunk) - The company adopted a new share award scheme and a share option scheme in June 2025, aimed at providing incentives and rewards to eligible participants who contribute to the Group's business success[118](index=118&type=chunk) [Interim Dividend](index=37&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the reporting period - The Board does not recommend the payment of any interim dividend for the reporting period[119](index=119&type=chunk) [Corporate Governance Practices](index=38&type=section&id=Corporate%20Governance%20Practices) The Group is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code in the HKEX Listing Rules; although the roles of Chairman and CEO are combined, the Board believes this arrangement facilitates efficient decision-making and will be reviewed periodically [Separation of Roles of Chairman and Chief Executive Officer](index=38&type=section&id=Separation%20of%20Roles%20of%20Chairman%20and%20Chief%20Executive%20Officer) Dr. Lou Jing serves as both Chairman and Chief Executive Officer of the company, an arrangement the Board believes ensures consistent leadership direction and efficient decision-making, and will be reviewed periodically - The company does not distinguish between the Chairman and Chief Executive Officer, with Dr. Lou Jing currently holding both positions concurrently[121](index=121&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer ensures consistent leadership direction for the Group, leading to more effective and efficient overall strategic planning[121](index=121&type=chunk) - The Board will review and consider separating the roles of Chairman and Chief Executive Officer of the company from time to time, taking into account the Group's overall circumstances[122](index=122&type=chunk) [Standard Code for Securities Transactions by Directors of Listed Issuers](index=38&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers from Appendix C3 of the HKEX Listing Rules, and all directors confirmed compliance during the reporting period after specific inquiry - The company has adopted the "Standard Code for Securities Transactions by Directors of Listed Issuers" as set out in Appendix C3 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its code of conduct[123](index=123&type=chunk) - Following specific inquiries made to the directors, all directors confirmed that they complied with the required standards set out in the Standard Code during the reporting period[123](index=123&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=38&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the reporting period, neither the company nor any of 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[124](index=124&type=chunk) [Audit Committee](index=39&type=section&id=Audit%20Committee) The company's Audit Committee, comprising three independent non-executive directors, reviewed the Group's interim results and assessed the effectiveness of risk management and internal control systems, deeming them effective and adequate - The Board has established the company's Audit Committee, comprising three independent non-executive directors: Mr. Pu Tianruo (Chairman), Mr. Wong Cho Yiu, and Ms. Yang Kaiti[125](index=125&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the reporting period and assessed the effectiveness of the company's risk management and internal control systems, deeming them effective and adequate[125](index=125&type=chunk) [Work Scope of Ernst & Young](index=39&type=section&id=Work%20Scope%20of%20Ernst%20%26%20Young) The financial information in the Group's interim results announcement has been reviewed by Ernst & Young, confirming consistency with the draft unaudited interim condensed consolidated financial information, though this work does not constitute an assurance engagement - The financial information contained in the Group's interim results announcement for the reporting period has been reviewed by the auditor, Ernst & Young, and confirmed to be consistent with the amounts contained in the Group's draft unaudited interim condensed consolidated financial information[126](index=126&type=chunk) - The work performed by Ernst & Young in this regard does not constitute an assurance engagement conducted in accordance with International Standards on Auditing, International Standards on Review Engagements, or International Standards on Assurance Engagements issued by the International Auditing and Assurance Standards Board[126](index=126&type=chunk) [Publication of I

[Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines common terms used in the report, ensuring readers have a clear understanding of the content, primarily covering key terms such as the Company, Group, controlling shareholder, Board of Directors, and Stock Exchange - The reporting period refers to January-June 2025, with the end of the reporting period on June 30, 2025; the same period last year was January-June 2024, and the end of last year was December 31, 2024[10](index=10&type=chunk) [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of China Railway Construction Corporation Limited's basic information, contact details, stock profile, and key accounting data and financial indicators for the reporting period, noting a year-on-year decrease in operating revenue and total profit, but an increase in total assets and net assets attributable to shareholders [I. Company Information](index=6&type=section&id=I.%20Company%20Information) The company's Chinese name is China Railway Construction Corporation Limited, abbreviated as CRCC, with Dai Hegen as its legal representative - The company's legal representative is **Dai Hegen**[11](index=11&type=chunk) [II. Contact Persons and Information](index=6&type=section&id=II.%20Contact%20Persons%20and%20Information) The company's Board Secretary and Joint Company Secretary is Jing Jing, and the Securities Affairs Representative is Wang Junshan, with the contact address for all being China Railway Construction Building, East Courtyard, No. 40 Fuxing Road, Haidian District, Beijing Company Contact Information | Position | Name | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Jing Jing | 010-52688600 | 010-52688302 | ir@crcc.cn | | Joint Company Secretary | Jing Jing, Luo Zhenbiao | 010-52688600 | 010-52688302 | ir@crcc.cn | | Securities Affairs Representative | Wang Junshan | 010-52688600 | 010-52688302 | ir@crcc.cn | [III. Brief Introduction to Changes in Basic Information](index=6&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) During the reporting period, there were no changes in the company's basic information, such as its registered address, office address, or website - The company's registered address and office address are both China Railway Construction Building, East Courtyard, No. 40 Fuxing Road, Haidian District, Beijing, postal code 100855; the company's Hong Kong office address is 23rd Floor, Railway Building, 39 Chatham Road South, Tsim Sha Tsui, Kowloon, Hong Kong; the company's website is www.crcc.cn, and its email address is ir@crcc.cn[12](index=12&type=chunk) - During the reporting period, there were no changes in the company's basic information[12](index=12&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=7&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) During the reporting period, there were no changes in the company's selected information disclosure newspapers, website addresses for semi-annual reports, or report storage locations - The company's selected information disclosure newspapers are China Securities Journal, Shanghai Securities News, Securities Daily, and Securities Times[13](index=13&type=chunk) - The website addresses for publishing semi-annual reports are the Shanghai Stock Exchange website: www.sse.com.cn and the Hong Kong Stock Exchange website: www.hkex.com.hk[13](index=13&type=chunk) - The company's semi-annual report storage location is the Board of Directors Office of China Railway Construction Building, East Courtyard, No. 40 Fuxing Road, Haidian District, Beijing[13](index=13&type=chunk) - During the reporting period, there were no changes in the company's information disclosure and document storage locations[13](index=13&type=chunk) [V. Company Stock Profile](index=7&type=section&id=V.%20Company%20Stock%20Profile) The company's A-shares are listed on the Shanghai Stock Exchange, and H-shares are listed on the Hong Kong Stock Exchange, with stock abbreviations and codes remaining unchanged Company Stock Profile | Stock Type | Stock Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | China Railway Construction | 601186 | | H-share | Hong Kong Stock Exchange | China Rail Cons | 1186 | [VI. Other Relevant Information](index=7&type=section&id=VI.%20Other%20Relevant%20Information) The company has appointed Ernst & Young Hua Ming LLP as its accounting firm, Beijing DeHeng Law Offices and Baker McKenzie as its legal advisors, and has A-share and H-share registrars - The company has appointed Ernst & Young Hua Ming LLP (Special General Partnership) as its accounting firm[15](index=15&type=chunk) - The company has appointed Beijing DeHeng Law Offices as its Chinese legal counsel and Baker McKenzie as its Hong Kong legal counsel[16](index=16&type=chunk) - The company's A-share registrar is China Securities Depository and Clearing Corporation Limited Shanghai Branch, and its H-share registrar is Hong Kong Registrars Limited[17](index=17&type=chunk) [VII. Company's Key Accounting Data and Financial Indicators](index=8&type=section&id=VII.%20Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue and total profit decreased year-on-year, with net profit attributable to shareholders and basic earnings per share also declining, while total assets and net assets attributable to shareholders increased Key Accounting Data (January-June) | Key Accounting Data | Current Reporting Period (Jan–Jun) (RMB Thousand) | Same Period Last Year (RMB Thousand) | Change from Same Period Last Year (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 489,199,045 | 516,136,718 | -5.22 | | Total Profit | 15,353,454 | 17,861,036 | -14.04 | | Net Profit Attributable to Shareholders of Listed Company | 10,701,474 | 11,902,158 | -10.09 | | Net Profit Attributable to Shareholders of Listed Company after Deducting Non-recurring Gains and Losses | 9,879,419 | 11,150,727 | -11.40 | | Net Cash Flow from Operating Activities | -79,457,258 | -81,676,283 | Not Applicable | Key Accounting Data (Period-end) | Key Accounting Data | End of Current Reporting Period (RMB Thousand) | End of Last Year (RMB Thousand) | Change from End of Last Year (%) | | :--- | :--- | :--- | :--- | | Net Assets Attributable to Shareholders of Listed Company | 341,139,978 | 328,251,080 | 3.93 | | Total Assets | 2,006,635,769 | 1,862,842,522 | 7.72 | Key Financial Indicators (January-June) | Key Financial Indicators | Current Reporting Period (Jan–Jun) | Same Period Last Year | Change from Same Period Last Year | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.70 | 0.79 | -11.39% | | Diluted Earnings Per Share (Yuan/share) | 0.70 | 0.79 | -11.39% | | Basic Earnings Per Share after Deducting Non-recurring Gains and Losses (Yuan/share) | 0.64 | 0.73 | -12.33% | | Weighted Average Return on Net Assets (%) | 3.55 | 4.19 | Decrease of 0.64 percentage points | | Weighted Average Return on Net Assets after Deducting Non-recurring Gains and Losses (%) | 3.24 | 3.89 | Decrease of 0.65 percentage points | [VIII. Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=9&type=section&id=VIII.%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, there were no differences in the company's accounting data under domestic and overseas accounting standards [IX. Non-recurring Gains and Losses Items and Amounts](index=10&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section lists the specific items and amounts of the company's non-recurring gains and losses during the reporting period, primarily including government subsidies, disposal gains/losses of non-current assets, and fair value changes of financial assets Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Items | Amount (RMB Thousand) | | :--- | :--- | | Disposal gains/losses of non-current assets, including the reversal of impairment provisions for assets | 12,032 | | Government subsidies recognized in current profit or loss, excluding those closely related to the company's normal business operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss | 252,075 | | Gains and losses from changes in fair value of financial assets and financial liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and financial liabilities, except for effective hedging activities related to normal business operations | 177,011 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 226,917 | | Debt restructuring gains and losses | 118,301 | | Other non-operating income and expenses apart from the above items | 253,861 | | Less: Income tax impact | 146,710 | | Impact on minority interests (after tax) | 71,432 | [X. Companies with Equity Incentives or Employee Stock Ownership Plans May Choose to Disclose Net Profit after Deducting the Impact of Share-based Payments](index=10&type=section&id=X.%20Companies%20with%20Equity%20Incentives%20or%20Employee%20Stock%20Ownership%20Plans%20May%20Choose%20to%20Disclose%20Net%20Profit%20after%20Deducting%20the%20Impact%20of%20Share-based%20Payments) The company does not have equity incentives or employee stock ownership plans, so this disclosure is not applicable [XI. Other](index=10&type=section&id=XI.%20Other) This section has no other matters requiring disclosure [Section III Management Discussion and Analysis (Board Report)](index=11&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis%20(Board%20Report)) This section discusses the company's industry development, main business operations, operating results, core competitiveness, asset and liability status, cash flow, investment status, and potential risks during the reporting period, noting growth in new contract value in engineering contracting and green environmental protection, but an overall decline in operating revenue and profit, while the company continues to advance technological innovation, refined management, and state-owned enterprise reform, actively fulfilling its social responsibilities [I. Explanation of the Company's Industry and Main Business Operations during the Reporting Period](index=11&type=section&id=I.%20Explanation%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20Operations%20during%20the%20Reporting%20Period) China Railway Construction, as a super-large integrated construction group, operates in engineering contracting, planning and design consulting, investment and operation, real estate development, industrial manufacturing, material logistics, green environmental protection, industrial finance, and strategic emerging industries; during the reporting period, the total output value of the construction industry increased by 0.2% year-on-year, infrastructure investment increased by 4.6%, but real estate development investment decreased by 11.2%, with the company's total new contract value decreasing by 4.04% year-on-year, while overseas business new contract value increased by 57.43% year-on-year [(I) Industry Development during the Reporting Period](index=11&type=section&id=(I)%20Industry%20Development%20during%20the%20Reporting%20Period) In the first half of 2025, China's construction industry's total output value was RMB 13,674.5 billion, a year-on-year increase of 0.2%; infrastructure investment grew by 4.6% year-on-year, with water transport industry investment increasing by 21.8%, water conservancy management industry investment by 15.4%, and railway transport industry investment by 4.2%; real estate development investment decreased by 11.2% year-on-year 2025 First Half Industry Development Overview | Indicator | Amount/Growth Rate | | :--- | :--- | | Total output value of construction industry | RMB 13,674.5 billion, year-on-year increase of 0.2% | | Added value of construction industry | RMB 3,821.1 billion, year-on-year increase of 0.7% | | National fixed asset investment (excluding rural households) | RMB 24,865.4 billion, year-on-year increase of 2.8% | | Infrastructure investment | Year-on-year increase of 4.6% | | Water transport industry investment | Increase of 21.8% | | Water conservancy management industry investment | Increase of 15.4% | | Railway transport industry investment | Increase of 4.2% | | National real estate development investment | RMB 4,665.8 billion, year-on-year decrease of 11.2% | | Residential investment | RMB 3,577.0 billion, year-on-year decrease of 10.4% | | Sales area of new commercial housing | 45,851 Ten Thousand square meters, year-on-year decrease of 3.5% | | Sales value of new commercial housing | RMB 4,424.1 billion, year-on-year decrease of 5.5% | - The engineering contracting industry maintained a high scale of development, with further industry concentration, but significant differentiation in sub-sectors, with rapid growth in water conservancy, energy, and power, while housing construction, highways, and municipal engineering declined[27](index=27&type=chunk) - Planning and design consulting business showed a downward trend, but new opportunities arose from emerging markets (such as rural construction, green environmental protection, new energy) and digital and intelligent transformation[28](index=28&type=chunk) - The real estate market showed marginal improvement driven by policies, but demand-side recovery still faces challenges, and the market is generally in a bottoming-out phase[31](index=31&type=chunk) - The industrial manufacturing industry was affected by the slowdown in transportation infrastructure construction investment, leading to intensified competition in the traditional general construction machinery market, but high-end equipment manufacturing and intelligent manufacturing brought development opportunities[32](index=32&type=chunk) - The material logistics industry performed below expectations due to decreased demand for construction materials, but green building material procurement policies and digital technology applications brought growth and efficiency improvements[33](index=33&type=chunk) - The green environmental protection industry, supported by national policies and technological innovation, is gradually becoming an important growth pole driving social and economic development[34](index=34&type=chunk) - Industrial finance, under a new round of financial regulatory system reform, emphasizes serving the real economy, encourages digital transformation of supply chain finance, and promotes the development of technology finance and green finance[35](index=35&type=chunk) [(II) Company's Business Operations during the Reporting Period](index=14&type=section&id=(II)%20Company%27s%20Business%20Operations%20during%20the%20Reporting%20Period) The company's core business, engineering contracting, covers multiple fields, using construction contract and financing contract models; planning and design consulting business continuously expands into new emerging fields; investment and operation business optimizes investment structure, focusing on new infrastructure, new energy, and other strategic emerging industries; real estate development business adheres to a focused approach, primarily residential development; industrial manufacturing industry forms three major business systems, promoting full industry chain collaboration; material logistics industry implements a "internal service, external output" strategy; green environmental protection business focuses on cultivating segmented areas of environmental governance; industrial finance adheres to the concept of serving the main business, forming five major platforms - Engineering contracting is the core and traditional industry of the Group, covering railway, highway, urban rail transit, water conservancy and hydropower, housing construction, municipal, bridge, tunnel, airport and port construction, and other fields, primarily adopting construction contract and financing contract models[36](index=36&type=chunk) - Planning and design consulting business continuously expands into new industries and fields such as intelligent transportation, modern tramways, urban comprehensive pipe corridors, urban underground space, ecological environment, and green environmental protection[37](index=37&type=chunk) - Investment and operation business, centered on high-quality development, shifts from investment-driven construction to returning to the essence of investment for profit, following a strategy of combining light and heavy assets, and long and short-term investments, to optimize the investment structure[38](index=38&type=chunk) - Real estate development business adheres to the principle of convergence and focus, concentrating on expanding projects in cities such as Beijing, Shanghai, Guangzhou, Chengdu, Xi'an, Hefei, and Hangzhou, adopting a business model primarily focused on residential development, supplemented by other industries[39](index=39&type=chunk) - The industrial manufacturing industry has formed three major business systems: equipment manufacturing, material production, and concrete PC component production, and is vigorously developing emerging businesses such as new energy equipment, high-speed railway maintenance equipment, and high-end intelligent agricultural machinery[40](index=40&type=chunk) - The material logistics industry formulates its development strategy and business model based on the core function of "internal service, external output," strengthening upstream and downstream extended services[41](index=41&type=chunk) - The green environmental protection business model primarily involves obtaining engineering contracting revenue through the construction of green environmental protection projects, focusing on cultivating segmented areas such as desertification control, soil remediation, mine restoration, and sewage treatment[42](index=42&type=chunk) - Industrial finance has formed five major platforms: a centralized fund management and utilization platform, an insurance resource centralized management platform, a financial leasing service platform, a supply chain finance and innovative financial service platform, and an industrial fund management platform[43](index=43&type=chunk) [(III) New Contract Situation during the Reporting Period](index=17&type=section&id=(III)%20New%20Contract%20Situation%20during%20the%20Reporting%20Period) In the first half of 2025, the Group's total new contract value was RMB 1,056.1696 billion, a year-on-year decrease of 4.04%; overseas business new contract value increased by 57.43% year-on-year, with engineering contracting and green environmental protection being the main components, and railway engineering new contract value increasing by 39.31% year-on-year, while urban rail engineering decreased by 64.75% 2025 First Half Total New Contract Value | Indicator | Amount (RMB Billion) | Year-on-Year Change Rate (%) | | :--- | :--- | :--- | | Total New Contract Value | 1,056.1696 | -4.04 | | Domestic Business New Contract Value | 942.0752 | -8.37 | | Overseas Business New Contract Value | 114.0944 | 57.43 | New Contract Value Indicators by Industry | Industry Type | New Contract Value (RMB Billion) | Year-on-Year Change Rate (%) | | :--- | :--- | :--- | | Engineering Contracting | 788.4259 | -7.27 | | Green Environmental Protection | 107.3821 | 15.07 | | Planning and Design Consulting | 10.0654 | -3.77 | | Industrial Manufacturing | 16.2168 | 9.90 | | Real Estate Development | 36.7834 | -11.20 | | Material Logistics | 85.4054 | 6.14 | | Industrial Finance | 4.0327 | -11.14 | | Emerging Industries | 7.8579 | 44.45 | New Contract Value Indicators for Infrastructure Construction Projects by Business | Business Type | New Contract Value (RMB Billion) | Year-on-Year Change Rate (%) | | :--- | :--- | :--- | | Railway Engineering | 109.3025 | 39.31 | | Highway Engineering | 80.0268 | 10.73 | | Urban Rail Engineering | 15.8462 | -64.75 | | Housing Construction Engineering | 401.4308 | -5.83 | | Municipal Engineering | 90.2558 | -14.55 | | Mining | 64.6946 | -7.27 | | Water Conservancy and Water Transport Engineering | 42.4776 | -22.24 | | Airport Engineering | 1.1836 | -22.43 | | Power Engineering | 59.6057 | 10.89 | | Other Engineering | 30.9844 | -14.59 | | Total | 895.8080 | -5.06 | - As of June 30, 2025, the Group's total uncompleted contract value was **RMB 8,068.2444 billion**, of which domestic business accounted for **81.06%** and overseas business accounted for **18.94%**[44](index=44&type=chunk) - New contract value for railway engineering saw a significant year-on-year increase, primarily due to an increase in the total volume of railway project tenders influenced by the market[47](index=47&type=chunk) - New contract value for urban rail engineering saw a significant year-on-year decrease, primarily due to a reduction in the total volume of urban rail project tenders influenced by the market[47](index=47&type=chunk) [II. Discussion and Analysis of Operating Conditions](index=19&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Conditions) In the first half of 2025, China Railway Construction achieved positive results in market operations, cost reduction and efficiency improvement, technological innovation, and the advancement of reform tasks, with overseas new contract value increasing by 57.43% year-on-year, and selling expenses and administrative expenses decreasing by 8.50% and 9.73% respectively, while the company's technological innovation system continued to improve, and progress was made in deepening and upgrading state-owned enterprise reform - The company actively aligned with central and local growth stabilization measures, closely monitoring key clients, key regions, and major projects such as "two major constructions," maintaining overall stable market operations[50](index=50&type=chunk) - Overseas development accelerated comprehensively, with overseas new contract value increasing by **57.43%** year-on-year[50](index=50&type=chunk) - The company focused on the goal of a "comprehensive improvement year" for refined management, continuously enhancing the refined management level of engineering projects and deeply carrying out supply chain management improvement actions[50](index=50&type=chunk) 2025 First Half Expense Control | Expense Type | Year-on-Year Decrease (%) | | :--- | :--- | | Selling Expenses | 8.50 | | Administrative Expenses | 9.73 | - The company's "1+9+N" technological innovation system continued to improve, major scientific and technological research tasks were carried out with high quality, and innovation achievements won multiple awards[51](index=51&type=chunk) - The company accelerated the promotion of deepening and upgrading state-owned enterprise reform, optimized layout and structure, steadily advanced streamlining and fitness, continuously deepened the three-system reform, and improved the corporate governance system[51](index=51&type=chunk) [III. Analysis of Core Competitiveness during the Reporting Period](index=20&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20during%20the%20Reporting%20Period) China Railway Construction's core competitiveness is reflected in technological innovation, a complete industrial chain layout, refined management, brand value, and cultural soft power, maintaining technological leadership in multiple engineering fields, possessing a complete industrial chain covering upstream and downstream of the construction industry, and enhancing efficiency and effectiveness through comprehensive refined management, while continuously improving brand value and strengthening corporate cultural cohesion - The Group's technological level in high-speed railways, plateau railways, high-cold railways, expressways, and urban rail transit engineering design and construction continues to maintain a leading position in the industry[53](index=53&type=chunk) - **3,033** new valid patents were added, including **1,153** invention patents; the digital and intelligent development pattern accelerated, with the launch of the "Institutional Large Model" system[53](index=53&type=chunk) - The Group possesses a complete industrial chain covering the upstream and downstream of the construction industry, capable of providing full-process, full-cycle, personalized, customized, and high-quality services to owners with different needs in various fields and types[54](index=54&type=chunk) - A comprehensive refined management system covering the entire system, all links, all positions, and all fields has been established, with cost management as the core, implementing a cost leadership strategy[55](index=55&type=chunk) - The Group is a globally renowned construction engineering contractor, infrastructure operator, high-end equipment manufacturer, and strategic emerging industry developer, with business operations in **150** countries and regions worldwide[56](index=56&type=chunk) - The Group has undertaken **50%** of domestic ordinary and high-speed railways, **40%** of urban rail transit, and **30%** of high-grade highways and above[56](index=56&type=chunk) - Inheriting and carrying forward the spirit of the Railway Corps, continuously promoting the "First Ten Spirits of China Railway Construction," and constantly enhancing cultural cohesion and appeal[57](index=57&type=chunk) [IV. Major Operating Conditions during the Reporting Period](index=22&type=section&id=IV.%20Major%20Operating%20Conditions%20during%20the%20Reporting%20Period) During the reporting period, the company's operating revenue decreased by 5.22% year-on-year, primarily due to reduced engineering contracting, planning and design consulting, real estate development, and material logistics businesses; financial expenses increased by 44.18% year-on-year, mainly due to increased interest expenses; total assets increased by 7.72%, and short-term borrowings increased by 41.05% to supplement working capital; overseas assets accounted for 4.67% of total assets; the company's long-term equity investments slightly decreased, but financial assets measured at fair value increased, and the financial status of major subsidiaries remained stable [(I) Analysis of Main Business Operations](index=22&type=section&id=(I)%20Analysis%20of%20Main%20Business%20Operations) During the reporting period, the company's operating revenue decreased by 5.22% year-on-year, and operating costs decreased by 4.93%; real estate development business operating revenue decreased by 34.21%, and total profit decreased by 99.87%, mainly due to market adjustments and reduced delivery scale; industrial manufacturing business operating revenue and total profit both increased; overseas business operating revenue increased by 20.29% Analysis of Financial Statement Related Items (RMB Thousand) | Item | Current Period Amount | Same Period Last Year Amount | Change Ratio (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 489,199,045 | 516,136,718 | -5.22 | Decrease in engineering contracting, planning and design consulting, real estate development, and material logistics businesses | | Operating Cost | 445,937,731 | 469,070,241 | -4.93 | Decrease in engineering contracting, planning and design consulting, real estate development, and material logistics businesses | | Selling Expenses | 2,712,168 | 2,964,103 | -8.50 | Expense reduction | | Administrative Expenses | 9,239,703 | 10,235,150 | -9.73 | Expense reduction | | Financial Expenses | 4,265,445 | 2,958,492 | 44.18 | Increase in interest expenses | | R&D Expenses | 7,516,476 | 8,610,730 | -12.71 | Decrease in R&D investment | | Net Cash Flow from Operating Activities | -79,457,258 | -81,676,283 | Not Applicable | Decrease in cash paid for goods and services | | Net Cash Flow from Investing Activities | -25,987,914 | -20,978,389 | Not Applicable | Increase in cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets | | Net Cash Flow from Financing Activities | 101,480,589 | 95,331,937 | 6.45 | Increase in cash received from borrowings | Main Business by Segment (RMB Thousand) | Segment | Operating Revenue | Operating Cost | Gross Profit Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Engineering Contracting Business | 434,599,557 | 402,322,250 | 7.43 | -3.77 | -3.63 | Decrease of 0.13 percentage points | | Planning and Design Consulting Business | 6,743,176 | 4,061,499 | 39.77 | -15.73 | -11.96 | Decrease of 2.58 percentage points | | Industrial Manufacturing Business | 11,826,033 | 9,321,945 | 21.17 | 5.27 | 5.11 | Increase of 0.12 percentage points | | Real Estate Development Business | 20,755,405 | 18,747,061 | 9.68 | -34.21 | -32.90 | Decrease of 1.76 percentage points | | Material Logistics and Other Businesses | 40,718,051 | 36,701,184 | 9.87 | -3.43 | -4.13 | Increase of 0.66 percentage points | | Total | 489,199,045 | 445,937,731 | 8.84 | -5.22 | -4.93 | Decrease of 0.28 percentage points | Main Business by Region (RMB Thousand) | Region | Operating Revenue | Operating Cost | Gross Profit Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic | 452,109,573 | 411,268,703 | 9.03 | -6.84 | -6.56 | Decrease of 0.27 percentage points | | Overseas | 37,089,472 | 34,669,028 | 6.53 | 20.29 | 19.93 | Increase of 0.29 percentage points | | Total | 489,199,045 | 445,937,731 | 8.84 | -5.22 | -4.93 | Decrease of 0.28 percentage points | - The main reasons for the changes in operating revenue, operating cost, gross profit, and total profit of the real estate development business are the continuous adjustment of the real estate market and the decrease in the scale of housing delivery during the reporting period[76](index=76&type=chunk) [(II) Explanation of Significant Profit Changes Caused by Non-Main Business Operations](index=27&type=section&id=(II)%20Explanation%20of%20Significant%20Profit%20Changes%20Caused%20by%20Non-Main%20Business%20Operations) During the reporting period, there were no significant profit changes caused by non-main business operations [(III) Analysis of Assets and Liabilities](index=28&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) As of the end of the reporting period, the company's total assets were RMB 2,006.636 billion, an increase of 7.72% from the end of last year; net assets attributable to shareholders of the listed company were RMB 341.140 billion, an increase of 3.93%; short-term borrowings increased by 41.05%, mainly to supplement working capital; notes receivable decreased by 43.48%, and accounts receivable increased by 18.22%; overseas assets accounted for 4.67% of total assets Assets and Liabilities Status (RMB Thousand) | Item Name | Current Period End Amount | % of Total Assets | Last Year End Amount | % of Total Assets | Change from Last Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 180,479,468 | 8.99 | 185,703,115 | 9.97 | -2.81 | | | Notes Receivable | 1,823,056 | 0.09 | 3,225,444 | 0.17 | -43.48 | Mainly due to a decrease in the proportion of customers using commercial acceptance bills for settlement during the reporting period | | Accounts Receivable | 242,072,540 | 12.06 | 204,759,238 | 10.99 | 18.22 | | | Contract Assets | 360,411,209 | 17.96 | 304,749,626 | 16.36 | 18.26 | | | Short-term Borrowings | 211,770,913 | 10.55 | 150,142,693 | 8.06 | 41.05 | Mainly due to the Group supplementing working capital during the reporting period | | Advances from Customers | 530,731 | 0.03 | 372,439 | 0.02 | 42.50 | Mainly due to an increase in advance rental payments for leasing business during the reporting period | | Contract Liabilities | 134,150,140 | 6.69 | 141,649,350 | 7.60 | -5.29 | | | Long-term Borrowings | 335,602,406 | 16.72 | 281,386,136 | 15.11 | 19.27 | | - Overseas assets amounted to **RMB 93,725,588 Thousand**, accounting for **4.67%** of total assets[86](index=86&type=chunk) [(IV) Liquidity and Capital Resources (Disclosed as Required by HKEX Listing Rules)](index=31&type=section&id=(IV)%20Liquidity%20and%20Capital%20Resources%20(Disclosed%20as%20Required%20by%20HKEX%20Listing%20Rules)) During the reporting period, net cash outflow from operating activities was RMB 79.4573 billion, a decrease of RMB 2.2190 billion compared to the same period last year; net cash outflow from investing activities was RMB 25.9879 billion, an increase of RMB 5.0095 billion compared to the same period last year; net cash inflow from financing activities was RMB 101.4806 billion, an increase of RMB 6.1487 billion compared to the same period last year; capital expenditure was RMB 19.6509 billion, a year-on-year increase of 6.50%; the gearing ratio was 74%, an increase from 71% at the end of last year Group Cash Flow (RMB Thousand) | Item | Current Reporting Period | Same Period Last Year | Change from Same Period Last Year | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -79,457,258 | -81,676,283 | 2,219,025 | | Net Cash Flow from Investing Activities | -25,987,914 | -20,978,389 | -5,009,525 | | Net Cash Flow from Financing Activities | 101,480,589 | 95,331,937 | 6,148,652 | - Net cash flow from operating activities was a net outflow of **RMB 79.4573 billion**, a decrease of **RMB 2.2190 billion** compared to the net outflow in the same period last year, mainly due to a decrease in cash paid for goods and services during the reporting period[90](index=90&type=chunk) - Net cash flow from investing activities was a net outflow of **RMB 25.9879 billion**, an increase of **RMB 5.0095 billion** compared to the net outflow in the same period last year, mainly due to an increase in cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets during the reporting period[90](index=90&type=chunk) - Net cash flow from financing activities was a net inflow of **RMB 101.4806 billion**, an increase of **RMB 6.1487 billion** compared to the net inflow in the same period last year, mainly due to an increase in cash received from borrowings during the reporting period[90](index=90&type=chunk) Capital Expenditure (RMB Thousand) | Item | Reporting Period | Same Period Last Year | | :--- | :--- | :--- | | Engineering Contracting Business | 11,214,589 | 10,720,969 | | Planning and Design Consulting Business | 188,361 | 87,677 | | Industrial Manufacturing Business | 290,958 | 726,556 | | Real Estate Development | 250,519 | 433,768 | | Other Businesses | 7,706,487 | 6,482,427 | | Total | 19,650,914 | 18,451,397 | - During the reporting period, the Group's capital expenditure was **RMB 19.6509 billion**, an increase of **RMB 1.1995 billion**, or **6.50%**, compared to the same period last year[91](index=91&type=chunk) - Accounts receivable increased by **RMB 37.3133 billion** from **RMB 204.7592 billion** on December 31, 2024, to **RMB 242.0725 billion** on June 30, 2025[94](index=94&type=chunk) Accounts Receivable Aging Analysis (RMB Thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 198,411,040 | 162,675,624 | | 1 to 2 years | 32,154,615 | 30,501,327 | | 2 to 3 years | 16,650,112 | 15,896,386 | | Over 3 years | 16,379,008 | 16,130,548 | | Subtotal | 263,594,775 | 225,203,885 | | Less: Credit Loss Provision | 21,522,235 | 20,444,647 | | Total | 242,072,540 | 204,759,238 | Accounts Receivable and Accounts Payable Turnover Days | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accounts Receivable Turnover Days | 90 | 68 | | Accounts Payable Turnover Days | 212 | 191 | - The Group's accounts payable increased by **RMB 25.8947 billion** from **RMB 512.8136 billion** on December 31, 2024, to **RMB 538.7084 billion** on June 30, 2025[97](index=97&type=chunk) - At the end of the reporting period, the Group's gearing ratio was **74%**, compared to **71%** at the end of last year[106](index=106&type=chunk) - At the end of the reporting period, the Group's committed amount was **RMB 51.2612 billion**, a decrease of **RMB 4.9473 billion**, or **8.80%**, compared to the end of last year, mainly due to a decrease in investment commitments during the reporting period[107](index=107&type=chunk) - At the end of the reporting period, the Group's pledged and mortgaged assets amounted to **RMB 221.8572 billion**, an increase of **RMB 3.5467 billion**, or **1.62%**, compared to the end of last year, mainly due to an increase in intangible asset pledges for borrowings during the reporting period[109](index=109&type=chunk) [(V) Analysis of Investment Status](index=37&type=section&id=(V)%20Analysis%20of%20Investment%20Status) At the end of the reporting period, the Group's book value of long-term equity investments was RMB 153.6609 billion, a decrease of 0.28% from the end of last year; financial assets measured at fair value at the end of the period were RMB 19,219,200 Thousand, an increase from the beginning of the period; private equity investments had a book value of RMB 9,115,365 Thousand at the end of the period, with a profit or loss of RMB 167,164 Thousand during the reporting period - At the end of the reporting period, the Group's book value of long-term equity investments was **RMB 153.6609 billion**, a decrease of **RMB 0.4380 billion**, or **0.28%**, compared to the end of last year, mainly due to a decrease in investments in joint ventures and associates during the reporting period[112](index=112&type=chunk) Financial Assets Measured at Fair Value (RMB Thousand) | Asset Category | Beginning Balance | Fair Value Change P/L for Current Period | Accumulated Fair Value Change in Equity | Current Period Purchase Amount | Current Period Sale/Redemption Amount | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 2,333,671 | 58,710 | 883,943 | – | 91,193 | 2,185,001 | | Trust Products | 1,000 | – | – | – | – | 1,000 | | Private Equity Funds | 8,141,913 | – | – | 1,027,452 | 54,000 | 9,115,365 | | Others | 6,345,037 | 146 | 3,593 | 11,232,019 | 9,649,500 | 7,917,834 | | Total | 16,821,621 | 58,856 | 887,536 | 12,259,471 | 9,794,693 | 19,219,200 | Private Equity Investment Status (RMB Thousand) | Name of Investee | Original Investment Amount | Ending Book Value | Profit/Loss for Reporting Period | | :--- | :--- | :--- | :--- | | Jinan Jiayue Transportation Investment Development Partnership (Limited Partnership) | 3,538,790 | 3,538,790 | 100,420 | | Guangxi Jiaotou Phase 21 Transportation Construction Investment Fund Partnership (Limited Partnership) | 1,036,142 | 1,036,142 | – | | Qingdao Metro Line 4 Investment Fund (Limited Partnership) | 917,000 | 894,000 | 37,201 | | Hubei Chudao No. 1 Infrastructure Investment Partnership (Limited Partnership) | 600,590 | 600,590 | -475 | | Total | 9,168,799 | 9,115,365 | 167,164 | [(VI) Major Asset and Equity Disposals](index=43&type=section&id=(VI)%20Major%20Asset%20and%20Equity%20Disposals) During the reporting period, the company had no major asset and equity disposal matters [(VII) Analysis of Major Holding and Participating Companies](index=43&type=section&id=(VII)%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, the company's major subsidiaries included China Civil Engineering Construction Corporation, China Railway No. 11 Bureau Group, China Railway Construction Real Estate Group, China Railway Construction Heavy Industry Group, China Railway Construction Investment Group, and China Railway Construction Finance Co. Ltd., all contributing significantly to total assets and net profit in areas such as construction, real estate development, industrial manufacturing, project investment, and financial services Major Subsidiary Financial Indicators as of June 30, 2025 (RMB Thousand) | Company Name | Registered Capital | Total Assets | Net Assets | Net Profit | Main Business | Industry | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China Civil Engineering Construction Corporation Ltd. | 3,000,000 | 37,569,531 | 10,496,590 | 589,402 | Construction | Construction | | China Railway No. 11 Bureau Group Co., Ltd. | 6,162,382 | 102,093,955 | 18,769,946 | 1,027,268 | Construction | Construction | | China Railway Construction Real Estate Group Co., Ltd. | 7,000,000 | 222,850,706 | 49,424,368 | 90,774 | Real Estate Development, Operation | Real Estate | | China Railway Construction Heavy Industry Group Co., Ltd. | 5,333,497 | 27,055,426 | 17,861,184 | 735,498 | Industrial Manufacturing | Industry | | China Railway Construction Investment Group Co., Ltd. | 12,067,086 | 219,705,084 | 38,683,625 | 434,619 | Project Investment | Investment | | China Railway Construction Finance Co., Ltd. | 9,000,000 | 120,854,494 | 14,454,863 | 536,264 | Financial Services | Finance | [(VIII) Information on Structured Entities Controlled by the Company](index=44&type=section&id=(VIII)%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) During the reporting period, the company had no controlled structured entities [V. Other Disclosure Matters](index=45&type=section&id=V.%20Other%20Disclosure%20Matters) The company's discussion and analysis of future development have not undergone significant changes since the disclosure of the 2024 annual report; the company faces investment, project operation and management, debt funding, international operation, and safety risks, and has formulated corresponding risk response measures, while continuously promoting the "Quality Improvement, Efficiency Enhancement, and Return Focus" special action to improve the quality of economic operations and market value management, and enhance corporate governance - The company's discussion and analysis of future development have not undergone significant changes since the disclosure of the 2024 annual report[130](index=130&type=chunk) - The major risks that the Group may face primarily include investment risk, project operation and management risk, debt funding risk, international operation risk, and safety risk[131](index=131&type=chunk) - The company strengthened situation analysis, optimized the medium- and long-term investment business structure to transform towards strategic emerging industries, reduced resource occupation, improved asset turnover efficiency, and strictly implemented a negative list for investment projects[131](index=131&type=chunk) - The company strengthened budget guidance, scientifically set budget indicators to guide subsidiaries to use limited funds for transformation and upgrading; strengthened assessment and control, conscientiously implementing the "one profit, five rates" assessment requirements of the State-owned Assets Supervision and Administration Commission of the State Council[133](index=133&type=chunk) - The company further optimized its overseas operation and management system, strengthened the construction of core pillar markets, promoted excellent enterprises and high-quality production capacity to "go global"; and improved the overseas risk control system[133](index=133&type=chunk) - The company solidly carried out the fundamental safety production improvement action, strictly grasped the investigation and rectification of major accident hazards, and promoted the dynamic clearing of major accident hazards[134](index=134&type=chunk) - The company focused on high-quality development, solidly carried out the "Quality Improvement, Efficiency Enhancement, and Return Focus" special action, and adopted multiple measures to promote value creation and valuation enhancement[135](index=135&type=chunk) - The company established a market value management leading group, formulated the "Market Value Management System" and "Valuation Enhancement Plan," and established a market value management monitoring and early warning analysis mechanism[135](index=135&type=chunk) - The 2024 cash dividend ratio was **20.60%**, an increase of **0.42 percentage points** from the previous year[135](index=135&type=chunk) - The company continuously revised its corporate governance system, abolished the Supervisory Board, and transferred the functions of the Supervisory Board as stipulated by the "Company Law" to the Board's Audit and Risk Management Committee, further enhancing corporate governance levels[135](index=135&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=48&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section discloses changes in the company's directors, supervisors, and senior management during the reporting period, emphasizes the company's compliance with the "Corporate Governance Code," and details the company's specific efforts in consolidating and expanding poverty alleviation achievements and rural revitalization, including financial investment, industrial assistance, and brand building [I. Changes in the Company's Directors, Supervisors, and Senior Management during the Reporting Period](index=48&type=section&id=I.%20Changes%20in%20the%20Company%27s%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20during%20the%20Reporting%20Period) During the reporting period, the company's Board of Directors and senior management underwent several changes, including the election of new independent non-executive directors and employee directors, and the appointment of new vice presidents and chief accountants; the company has abolished the Supervisory Board, with its relevant functions now exercised by the Board's Audit and Risk Management Committee Changes in the Company's Directors, Supervisors, and Senior Management during the Reporting Period | Name | Position Held | Change Type | | :--- | :--- | :--- | | Wang Jun | Independent Non-Executive Director | Election | | Zhu Lin | Employee Director | Election | | Zhao Lixin | Independent Non-Executive Director | Resignation | | Zhao Wei | Chairman of the Supervisory Board | Resignation | | Liu Xuan | Supervisor | Resignation | | Kang Fuxiang | Employee Supervisor | Resignation | | Lei Shengxiang | Chief Engineer | Resignation | - On April 29, 2025, the company convened its first extraordinary general meeting in 2025, electing shareholder representative directors for the Sixth Board of Directors and appointing new senior management personnel[137](index=137&type=chunk) - On June 20, 2025, the company convened its 2024 annual general meeting, which approved the "Proposal on Amending the Articles of Association of China Railway Construction Corporation Limited and Abolishing the Supervisory Board," leading to the abolition of the company's Supervisory Board[139](index=139&type=chunk) [II. Securities Dealing Code for Directors and Supervisors of the Company during the Reporting Period (Disclosed as Required by HKEX Listing Rules)](index=49&type=section&id=II.%20Securities%20Dealing%20Code%20for%20Directors%20and%20Supervisors%20of%20the%20Company%20during%20the%20Reporting%20Period%20(Disclosed%20as%20Required%20by%20HKEX%20Listing%20Rules)) The company has adopted a code of conduct no less stringent than the "Model Code for Securities Transactions by Directors of Listed Issuers" in Appendix C3 of the HKEX Listing Rules, and confirms that all directors and supervisors have complied with the code during the reporting period - The company has adopted a code of conduct for securities transactions by directors, supervisors, and relevant employees that is no less stringent than the standards stipulated in Appendix C3 "Model Code for Securities Transactions by Directors of Listed Issuers" of the Hong Kong Stock Exchange Listing Rules[141](index=141&type=chunk) - The company confirms that all directors and supervisors have complied with the prescribed standards during the reporting period[141](index=141&type=chunk) [III. Profit Distribution Plan or Capital Reserve to Share Capital Conversion Plan](index=50&type=section&id=III.%20Profit%20Distribution%20Plan%20or%20Capital%20Reserve%20to%20Share%20Capital%20Conversion%20Plan) The company's proposed semi-annual profit distribution plan or capital reserve to share capital conversion plan is to not distribute or convert - The proposed semi-annual profit distribution plan and capital reserve to share capital conversion plan are to not distribute or convert[142](index=142&type=chunk) [IV. Information on the Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact](index=50&type=section&id=IV.%20Information%20on%20the%20Company%27s%20Equity%20Incentive%20Plan%2C%20Employee%20Stock%20Ownership%20Plan%2C%20or%20Other%20Employee%20Incentive%20Measures%20and%20Their%20Impact) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period [V. Company Employee Information, Remuneration, and Training (Disclosed as Required by HKEX Listing Rules)](index=51&type=section&id=V.%20Company%20Employee%20Information%2C%20Remuneration%2C%20and%20Training%20(Disclosed%20as%20Required%20by%20HKEX%20Listing%20Rules)) During the reporting period, there were no significant changes in the Group's employee information, remuneration, and training since the disclosure of the 2024 annual report - During the reporting period, there were no significant changes in the Group's employee information, remuneration, and training since the disclosure of the 2024 annual report[145](index=145&type=chunk) [VI. Company's Compliance with the "Corporate Governance Code" (Disclosed as Required by HKEX Listing Rules)](index=51&type=section&id=VI.%20Company%27s%20Compliance%20with%20the%20%22Corporate%20Governance%20Code%22%20(Disclosed%20as%20Required%20by%20HKEX%20Listing%20Rules)) During the reporting period, the company strictly complied with all code provisions of the "Company Law," "Securities Law," relevant Hong Kong laws and regulations, and the "Corporate Governance Code" contained in Appendix C1 of the HKEX Listing Rules - During the reporting period, the company strictly complied with all code provisions of the "Company Law," "Securities Law," relevant Hong Kong laws and regulations, and the "Corporate Governance Code" contained in Appendix C1 of the Hong Kong Stock Exchange Listing Rules[146](index=146&type=chunk) [VII. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=51&type=section&id=VII.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company is not applicable to this disclosure [VIII. Specific Information on Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=51&type=section&id=VIII.%20Specific%20Information%20on%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20and%20Other%20Work) China Railway Construction deeply implemented the rural revitalization strategy, undertaking targeted poverty alleviation tasks in Wanquan District and Shangyi County of Zhangjiakou City, Hebei Province, and Long'an County of Guangxi Zhuang Autonomous Region, as well as counterpart support tasks in Jiangda County of Changdu City, Tibet Autonomous Region; in the first half of 2025, the company invested RMB 52.11 million in gratuitous assistance funds, directly introduced RMB 8.268 million in compensatory assistance funds, and promoted economic and social development in assisted areas through industrial assistance, brand building, and multi-dimensional assistance - The company headquarters undertakes targeted poverty alleviation tasks in Wanquan District and Shangyi County of Zhangjiakou City, Hebei Province, and Long'an County of Guangxi Zhuang Autonomous Region, as well as counterpart support tasks in Jiangda County of Changdu City, Tibet Autonomous Region[147](index=147&type=chunk) - In the 2024 central unit targeted poverty alleviation performance evaluation, China Railway Construction received the highest rating of "Excellent" for the fourth consecutive year[147](index=147&type=chunk) 2025 First Half Assistance Fund Investment | Assistance Type | Amount (RMB Ten Thousand) | | :--- | :--- | | Gratuitous Assistance Funds | 5,211 | | Directly Introduced Compensatory Assistance Funds | 826.8 | | Funds Invested to Consolidate "Two Assurances and Three Guarantees" Achievements | 140 | | Purchase of Agricultural Products from Assisted Areas | 817 | - The company supported **11** leading enterprises, trained **441** rural grassroots cadres, **310** rural revitalization leaders, and **1,885** professional technical personnel[148](index=148&type=chunk) - Solidifying the "ballast stone" of industrial assistance, ensuring that over **70%** of gratuitous assistance funds are used for industrial assistance, such as the sea buckthorn planting project in Wanquan District and the big cherry project in Shangyi County[148](index=148&type=chunk) - Utilizing the "compass" of brand building, creating the "CRCC Xingnong" rural revitalization master brand, and developing sub-brands based on local characteristics, such as "CRCC Sunshine - Rural Education" and "CRCC Select - Online E-commerce"[150](index=150&type=chunk) - Consolidating the "centripetal force" of multi-dimensional assistance, mobilizing grassroots forces across the entire system to carry out "Hundred Belt Project" and "Nourishing Heart Project" to assist rural revitalization, improving the quality and effectiveness of assistance work[150](index=150&type=chunk) [Section V Important Matters](index=54&type=section&id=Section%20V%20Important%20Matters) This section details the company's fulfillment of commitments, changes in the appointment of accounting firms, major related-party transactions, and significant contracts and their performance during the reporting period, noting that all commitments were strictly fulfilled, and the change of accounting firm was completed, with no major lawsuits, arbitrations, or irregular guarantees during the reporting period [I. Fulfillment of Commitments](index=54&type=section&id=I.%20Fulfillment%20of%20Commitments) During the reporting period, all commitments made by the company's actual controller, shareholders, related parties, and the company itself were strictly and timely fulfilled, including compensation commitments for undisclosed land idling and other illegal activities, commitments to resolve land title defects, and share lock-up and price stabilization commitments related to CRCC Heavy Industry's listing on the STAR Market - The controlling shareholder, China Railway Construction Group Co., Ltd., committed to bear civil liability for compensation in accordance with the law if China Railway Construction incurs losses due to undisclosed land idling or other illegal activities, which is a long-term commitment that has been timely and strictly fulfilled[151](index=151&type=chunk) - The company's directors and senior management also made similar compensation commitments, which have been timely and strictly fulfilled[153](index=153&type=chunk) - The controlling shareholder, China Railway Construction Group Co., Ltd., committed to process land certificates and property certificates, and bear the costs of processing and any losses incurred therefrom, which is a long-term commitment that has been timely and strictly fulfilled[153](index=153&type=chunk) - The share lock-up commitments made by the controlling shareholder and the company regarding the spin-off and listing of CRCC Heavy Industry on the STAR Market were fulfilled during the reporting period[155](index=155&type=chunk)[157](index=157&type=chunk) [II. Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties during the Reporting Period](index=60&type=section&id=II.%20Non-operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20during%20the%20Reporting%20Period) During the reporting period, there was no non-operating fund occupation by the controlling shareholder and other related parties [III. Irregular Guarantees](index=60&type=section&id=III.%20Irregular%20Guarantees) During the reporting period, there were no irregular guarantees [IV. Semi-Annual Report Audit Status](index=60&type=section&id=IV.%20Semi-Annual%20Report%20Audit%20Status) The company's semi-annual report was not audited [V. Appointment and Dismissal of Accounting Firms](index=60&type=section&id=V.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company held its 2024 Annual General Meeting on June 20, 2025, which approved the appointment of Ernst & Young Hua Ming LLP (Special General Partnership) as the company's audit intermediary service provider for 2025, with an audit fee of RMB 25 million - The company decided to change its accounting firm, appointing Ernst & Young Hua Ming LLP (Special General Partnership) as the company's audit intermediary service provider for 2025[162](index=162&type=chunk) - The audit fee is **RMB 25 million**, of which **RMB 23.30 million** is for domestic and overseas financial statement audits and interim reviews, and **RMB 1.70 million** is for internal control audits[162](index=162&type=chunk) [VI. Review of Semi-Annual Report by Audit and Risk Management Committee](index=60&type=section&id=VI.%20Review%20of%20Semi-Annual%20Report%20by%20Audit%20and%20Risk%20Management%20Committee) The company's Board Audit and Risk Management Committee has reviewed the Group's unaudited interim financial statements for the six months ended June 30, 2025, which were reviewed by Ernst & Young Hua Ming LLP, and discussed accounting policies, practices, and internal controls with management - The company's Board Audit and Risk Management Committee has reviewed the Group's unaudited interim financial statements for the six months ended June 30, 2025, which were reviewed by Ernst & Young Hua Ming LLP (Special General Partnership)[163](index=163&type=chunk) [VII. Changes and Handling of Matters Involving Non-Standard Audit Opinions in the Previous Year's Annual Report](index=60&type=section&id=VII.%20Changes%20and%20Handling%20of%20Matters%20Involving%20Non-Standard%20Audit%20Opinions%20in%20the%20Previous%20Year%27s%20Annual%20Report) The company is not applicable to this disclosure [VIII. Bankruptcy and Reorganization Related Matters](index=61&type=section&id=VIII.%20Bankruptcy%20and%20Reorganization%20Related%20Matters) The company is not applicable to this disclosure [IX. Major Litigation and Arbitration Matters](index=61&type=section&id=IX.%20Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no major litigation or arbitration matters - During the current reporting period, the company had no major litigation or arbitration matters[166](index=166&type=chunk) [X. Listed Company and Its Directors, Senior Management, Controlling Shareholder, and Actual Controller Suspected of Violations, Penalties, and Rectification](index=61&type=section&id=X.%20Listed%20Company%20and%20Its%20Directors%2C%20Senior%20Management%2C%20Controlling%20Shareholder%2C%20and%20Actual%20Controller%20Suspected%20of%20Violations%2C%20Penalties%2C%20and%20Rectification) The company is not applicable to this disclosure [XI. Explanation of the Integrity Status of the Company and Its Controlling Shareholder and Actual Controller during the Reporting Period](index=61&type=section&id=XI.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%20and%20Its%20Controlling%20Shareholder%20and%20Actual%20Controller%20during%20the%20Reporting%20Period) The company is not applicable to this disclosure [XII. Major Related-Party Transactions](index=62&type=section&id=XII.%20Major%20Related-Party%20Transactions) The company has multiple daily operating related-party transactions with its controlling shareholder and related parties, including property leasing, service provision, financial services, and equipment purchase, sale, and leasing services; these transactions were executed in accordance with agreements and fulfilled necessary decision-making procedures and information disclosure obligations; during the reporting period, the company provided RMB 1,683,000 Thousand in funds to related parties, and related parties provided RMB 2,616,467 Thousand in funds to the company [(I) Related-Party Transactions Related to Daily Operations](index=62&type=section&id=(I)%20Related-Party%20Transactions%20Related%20to%20Daily%20Operations) The company renewed its property leasing framework agreement, service provision framework agreement, and financial services agreement with its controlling shareholder, and signed an equipment purchase, sale, and leasing service agreement; these agreements all set annual transaction caps and were approved by independent directors; during the reporting period, all related-party transactions were executed in accordance with the agreements - The company renewed its property leasing framework agreement with its controlling shareholder, with an annual transaction cap of **RMB 300 million** for 2025[167](index=167&type=chunk) - The company renewed its service provision framework agreement with its controlling shareholder, with an annual transaction cap not exceeding **RMB 1 billion** for 2025–2027[170](index=170&type=chunk) - The controlling subsidiary China Railway Construction Finance Co., Ltd. renewed its financial services agreement with the controlling shareholder and provided deposit, loan, settlement, and other financial services to the controlling shareholder and its subsidiaries in accordance with the agreement[174](index=174&type=chunk) - The company signed an equipment purchase, sale, and leasing service agreement with CRCC Financial Leasing[174](index=174&type=chunk) Related-Party Transactions Related to Daily Operations between the Group and the Controlling Shareholder (RMB Thousand) | Related Party | Related-Party Transaction Type | Related-Party Transaction Content | Transaction Amount | | :--- | :--- | :--- | :--- | | Shaanxi Railway Engineering Survey Co., Ltd. and 12 other entities | Acceptance of Labor Services Expenditure | Planning and Design Consulting | 236,835 | | Controlling Shareholder and Related Parties | Property Leasing Expenditure | Property Leasing | 29,905 | | CRCC Financial Leasing Co., Ltd. | Machinery and Equipment Leasing Expenditure | Machinery and Equipment Leasing | 1,179,252 | | CRCC Financial Leasing Co., Ltd. | Equipment Sales Revenue | Equipment Sales | 251,958 | | CRCC Financial Leasing Co., Ltd. | Equipment Procurement Expenditure | Equipment Procurement | 147,155 | [(II) Related-Party Transactions Arising from Asset or Equity Acquisitions and Disposals](index=66&type=section&id=(II)%20Related-Party%20Transactions%20Arising%20from%20Asset%20or%20Equity%20Acquisitions%20and%20Disposals) During the reporting period, the company had no related-party transactions arising from asset or equity acquisitions and disposals [(III) Major Related-Party Transactions for Joint External Investments](index=67&type=section&id=(III)%20Major%20Related-Party%20Transactions%20for%20Joint%20External%20Investments) During the reporting period, the company had no major related-party transactions for joint external investments [(IV) Related-Party Creditor-Debtor Relationships](index=68&type=section&id=(IV)%20Related-Party%20Creditor-Debtor%20Relationships) During the reporting period, the company had operational creditor-debtor relationships with related parties, all settled according to normal progress; the company provided loans to the controlling shareholder, with an ending balance of RMB 1,683,000 Thousand; related parties provided funds to the company, with an ending balance of RMB 2,616,467 Thousand Related-Party Creditor-Debtor Relationships (RMB Thousand) | Related Party | Related Relationship | Ending B

GLORY FLAME HOLDINGS LIMITED 朝威控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8059） 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，並明確表示不會就本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 本公告將於刊登日期起計七天刊載於聯交所網站www.hkexnews.hk的「最新公司公告」網頁內。 本公告亦將於本公司網站www.gf-holdings.com刊載。 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange ...

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Interim Results Overview](index=1&type=section&id=Interim%20Results) The Group announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, prepared under IAS 34 and Listing Rules - The Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, were prepared in accordance with IAS 34 and the applicable disclosure requirements of the Listing Rules[3](index=3&type=chunk) [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) The Group reported a $5,186 thousand profit for H1 2025, a significant turnaround from a $52,111 thousand loss in H1 2024, primarily due to fair value gains Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (USD '000) | 2024 (USD '000) | | :--- | :--- | :--- | | Revenue | – | – | | Other income | 28 | – | | Net other gains or losses | (594) | 729 | | General and administrative expenses | (9,365) | (4,818) | | Research and development expenses | (23,732) | (22,487) | | Operating loss | (33,663) | (26,576) | | Net finance income | 495 | 1,219 | | Fair value changes of financial liabilities at FVTPL | 38,421 | (26,779) | | Profit/(loss) before income tax | 5,253 | (52,136) | | Profit/(loss) for the period | 5,186 | (52,111) | | Total comprehensive income/(loss) for the period | 5,976 | (52,935) | | Basic earnings/(loss) per share | 0.01 | (0.11) | | Diluted earnings/(loss) per share | (0.04) | (0.11) | - Profit for the period shifted from a **$52,111 thousand loss** in H1 2024 to a **$5,186 thousand profit** in H1 2025[4](index=4&type=chunk) - Fair value changes of financial liabilities at FVTPL turned from a **($26,779) thousand loss** in H1 2024 to a **$38,421 thousand gain** in H1 2025, being the primary driver for the turnaround[4](index=4&type=chunk) [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets decreased to $25,740 thousand, with net current liabilities of ($333,373) thousand, though preference shares converted post-period Condensed Consolidated Interim Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (USD '000) | December 31, 2024 (USD '000) | | :--- | :--- | :--- | | Total assets | 25,740 | 40,009 | | Total deficit | (330,173) | (351,546) | | Total liabilities | 355,913 | 391,555 | | Net current liabilities | (333,373) | (353,837) | | Cash and cash equivalents | 15,090 | 34,862 | | Convertible redeemable preference shares (current liabilities) | 347,732 | 386,195 | - Total assets decreased from **$40,009 thousand** on December 31, 2024, to **$25,740 thousand** on June 30, 2025[6](index=6&type=chunk) - Net current liabilities amounted to **($333,373) thousand**, primarily due to convertible redeemable preference shares classified as current liabilities, which were automatically converted into shares upon listing on July 3, 2025[7](index=7&type=chunk)[14](index=14&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) [1. General Information](index=6&type=section&id=1.%20General%20Information) The Company, incorporated in the Cayman Islands on November 20, 2020, focuses on therapeutic biologics R&D, with its principal place of business in Hong Kong changing on August 26, 2025 - The Company was incorporated in the Cayman Islands on **November 20, 2020**, primarily engaged in the research and development of therapeutic biologics[8](index=8&type=chunk)[9](index=9&type=chunk) - The Company's principal place of business in Hong Kong changed effective **August 26, 2025**[8](index=8&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared under IAS 34 and Listing Rules, using historical cost and fair value remeasurement for preference shares - The financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Listing Rules[11](index=11&type=chunk) - The condensed consolidated interim financial information is prepared on a historical cost basis, modified by the revaluation of convertible redeemable preference shares at fair value[12](index=12&type=chunk) [3. Going Concern](index=7&type=section&id=3.%20Going%20Concern) Despite net current liabilities of $333,373 thousand, directors believe there are no significant going concern doubts due to post-period share conversion and global offering proceeds - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately **$333,373 thousand**, with net liabilities of approximately **$330,173 thousand**[14](index=14&type=chunk) - All convertible redeemable preference shares were automatically and irrevocably converted into shares upon listing on **July 3, 2025**[14](index=14&type=chunk) - The Group received net proceeds of approximately **HK$524,658 thousand** from the global offering, leading directors to believe there are no significant going concern doubts[14](index=14&type=chunk) [4. Application of Amendments to IFRS](index=7&type=section&id=4.%20Application%20of%20Amendments%20to%20IFRS) Amendments to IFRS applied during the reporting period had no significant impact on the Group's consolidated financial position or performance - Amendments to IFRS applied during the reporting period had no significant impact on the Group's consolidated financial position and performance[15](index=15&type=chunk) [5. Segment Information](index=7&type=section&id=5.%20Segment%20Information) The Group operates solely in the R&D of therapeutic biologics, with non-current assets predominantly located in mainland China - The Group has only one operating and reportable segment, which is the research and development of therapeutic biologics[16](index=16&type=chunk) Non-current Assets by Geographical Location (USD '000) | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Mainland China | 3,204 | 2,205 | | Hong Kong | 13 | 91 | | United States | 102 | 203 | | Others | 1 | 1 | | Total | 3,320 | 2,500 | [6. Operating Loss](index=8&type=section&id=6.%20Operating%20Loss) Operating loss primarily comprised clinical research, employee benefit, and listing expenses, with employee benefits and listing expenses significantly increasing in H1 2025 Key Components of Operating Loss (For the six months ended June 30, USD '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Clinical research expenses | 9,210 | 14,014 | | Employee benefit expenses | 18,900 | 9,729 | | Listing expenses | 2,833 | 736 | - Employee benefit expenses increased from **$9,729 thousand** in H1 2024 to **$18,900 thousand** in H1 2025[18](index=18&type=chunk) - Listing expenses significantly increased from **$736 thousand** in H1 2024 to **$2,833 thousand** in H1 2025[18](index=18&type=chunk) [7. Income Tax Expense/(Credit)](index=8&type=section&id=7.%20Income%20Tax%20Expense%2F%28Credit%29) The Group recorded a current income tax expense of $67 thousand in H1 2025, with tax rates varying by jurisdiction, including 25% in Mainland China Current Income Tax Expense/(Credit) (For the six months ended June 30, USD '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current income tax | 67 | 51 | | Over-provision in prior periods | – | (76) | | Current income tax expense/(credit) | 67 | (25) | - The corporate income tax rate in Mainland China is **25%**[24](index=24&type=chunk) - The US federal income tax rate is **21%**, California is **8.84%**, and Delaware is **8.7%**[23](index=23&type=chunk) [8. Earnings/(Loss) Per Share](index=10&type=section&id=8.%20Earnings%2F%28Loss%29%20Per%20Share) Basic earnings per share were $0.01 in H1 2025, compared to a basic loss of $0.11 in H1 2024, with diluted loss per share at $0.04 due to fair value changes Basic Earnings/(Loss) Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the Company (USD '000) | 5,186 | (52,111) | | Weighted average number of ordinary shares in issue | 475,386,302 | 475,386,302 | | Basic earnings/(loss) per share (expressed in USD per share) | 0.01 | (0.11) | Diluted Loss Per Share Calculation (For the six months ended June 30) | Metric | 2025 (USD '000) | 2024 (USD '000) | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the Company | 5,186 | (52,111) | | Fair value changes of convertible redeemable preference shares | (38,421) | – | | Net loss attributable to owners of the Company | (33,235) | (52,111) | | Weighted average number of ordinary shares in issue for diluted loss per share | 776,085,874 | 475,386,302 | | Diluted loss per share (expressed in USD per share) | (0.04) | (0.11) | - Diluted loss per share for H1 2024 was the same as basic loss per share due to the anti-dilutive effect of potential ordinary shares[28](index=28&type=chunk) [9. Dividends](index=11&type=section&id=9.%20Dividends) No dividends were declared or proposed during the reporting period or the prior period - No dividends were declared or proposed during the reporting period[29](index=29&type=chunk) [10. Trade and Other Payables](index=11&type=section&id=10.%20Trade%20and%20Other%20Payables) Total trade and other payables increased to $7,739 thousand as of June 30, 2025, primarily due to higher trade payables, accrued legal, professional, and listing expenses Trade and Other Payables (USD '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 3,154 | 1,760 | | Accrued legal and professional expenses | 713 | 128 | | Accrued listing expenses | 2,755 | 947 | | Total | 7,739 | 4,766 | - Trade payables increased from **$1,760 thousand** on December 31, 2024, to **$3,154 thousand** on June 30, 2025[30](index=30&type=chunk) [11. Contingent Liabilities](index=11&type=section&id=11.%20Contingent%20Liabilities) The Group had no significant contingent liabilities at the end of the reporting period - The Group had no significant contingent liabilities at the end of the reporting period[31](index=31&type=chunk) [12. Capital Commitments](index=11&type=section&id=12.%20Capital%20Commitments) As of June 30, 2025, the Group's capital commitments were $1,048 thousand, primarily for property, plant, and equipment, with none on December 31, 2024 Capital Commitments (USD '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property, plant and equipment | 1,048 | – | - Capital commitments increased from zero on December 31, 2024, to **$1,048 thousand** on June 30, 2025[32](index=32&type=chunk) [13. Events After Reporting Period](index=11&type=section&id=13.%20Events%20After%20Reporting%20Period) On July 3, 2025, shares were listed on the Main Board of the Stock Exchange, with 60,582,000 shares issued in a global offering at HK$10.10 per share - On **July 3, 2025**, shares were listed on the Main Board of the Stock Exchange, with **60,582,000 shares** issued in the global offering[33](index=33&type=chunk) - The subscription price for the global offering was **HK$10.10 per share**, with proceeds credited to the Company's share capital and share premium accounts[33](index=33&type=chunk) [I. Business Review](index=12&type=section&id=I.%20Business%20Review) [1. Overview](index=12&type=section&id=1.%20Overview) The Company is a clinical-stage ophthalmic biotechnology company focused on developing innovative therapies for eye diseases, operating primarily in the US and China, with eight internally developed drug candidates - The Company is a clinical-stage ophthalmic biotechnology company operating primarily in the United States and China[34](index=34&type=chunk) - The current pipeline includes **eight drug candidates**, with **four in clinical stage** and **four in pre-clinical stage**, all internally developed[34](index=34&type=chunk) [2. Pipeline](index=12&type=section&id=2.%20Pipeline) The Group's pipeline includes core products CBT-001 (pterygium) and CBT-009 (juvenile myopia), both in or approved for Phase 3 trials, along with other clinical and pre-clinical candidates - Core products **CBT-001 (pterygium)** and **CBT-009 (juvenile myopia)** have entered advanced clinical development stages[34](index=34&type=chunk) [2.1. Core Products](index=12&type=section&id=2.1.%20Core%20Products) CBT-001 (pterygium) is in global Phase 3 multi-regional clinical trials, expected to complete by June 2026; CBT-009 (juvenile myopia) completed Phase 1/2 in Australia and received US FDA approval for Phase 3 trials - CBT-001 completed patient enrollment across all five jurisdictions in **May 2025**, with a total of **660 patients** recruited, and Phase 3 multi-regional clinical trials are expected to conclude by **June 2026**[36](index=36&type=chunk) - CBT-001 has established commercialization partnerships with **Grand Pharma (Greater China)** and **Santen (Japan, Korea, and other APAC regions)**[36](index=36&type=chunk) - CBT-009 completed combined Phase 1 and Phase 2 clinical trials in Australia in **January 2023**, demonstrating good safety and efficacy[37](index=37&type=chunk) - The US FDA approved CBT-009 for Phase 3 clinical trials in the United States in **September 2023** and **September 2024**[37](index=37&type=chunk) [2.2. Other Clinical Stage Candidates](index=14&type=section&id=2.2.%20Other%20Clinical%20Stage%20Candidates) CBT-006 (MGD-related dry eye) completed US Phase 2 trials in May 2022, with plans for additional studies in Hong Kong; CBT-004 (vascularized pinguecula) completed Phase 2 trials in May 2025 with positive results, and Phase 3 discussions with the US FDA are planned - CBT-006 completed US Phase 2 clinical trials in **May 2022** and plans to initiate additional clinical studies in Hong Kong[39](index=39&type=chunk)[40](index=40&type=chunk) - CBT-004 completed Phase 2 clinical trials in **May 2025**, with results indicating achievement of primary efficacy endpoints, and a post-Phase 2 meeting with the US FDA is planned[42](index=42&type=chunk) - As of June 30, 2025, CBT-004 is the **only clinical-stage drug globally** for the treatment of vascularized pinguecula[41](index=41&type=chunk) [2.3. Pre-clinical Stage Candidates](index=15&type=section&id=2.3.%20Pre-clinical%20Stage%20Candidates) The Group has four pre-clinical stage candidates: CBT-007 (glaucoma filtration surgery success rate), CBT-199 and CBT-145 (presbyopia), and CBT-011 (diabetic macular edema) - CBT-007 aims to improve the success rate of glaucoma filtration surgery[43](index=43&type=chunk) - CBT-199 and CBT-145 are novel formulations and new chemical entities for treating presbyopia[43](index=43&type=chunk) - CBT-011 is an ADS conjugate for the treatment of diabetic macular edema[43](index=43&type=chunk) [2.4. Pipeline Development Summary](index=16&type=section&id=2.4.%20Pipeline%20Development%20Summary) This section provides a tabular overview of each drug candidate's development status, mechanism, indication, commercial rights, formulation, clinical stage, and projected milestones as of June 30, 2025 - **CBT-001** and **CBT-009** are core products, both having entered or been approved for Phase 3 clinical trials[45](index=45&type=chunk) - Most drug candidates are being developed in the US via the **505(b)(2) pathway** to accelerate development timelines and reduce costs[45](index=45&type=chunk) [3. Production Facilities](index=17&type=section&id=3.%20Production%20Facilities) The Group established a GMP-compliant pilot production facility in Suzhou, China, with an annual capacity of 3.5 million to 5.3 million bottles, and plans to complete Phase 1 of a large-scale commercial production facility by 2026 - A pilot production facility has been established in Suzhou, China, designed to comply with Good Manufacturing Practice standards of the **US, China, and the European Union**[47](index=47&type=chunk) - The pilot production facility has a designed annual capacity of **3.5 million to 5.3 million bottles** (0.2 ml/bottle)[47](index=47&type=chunk) - Construction of the planned commercial production facility commenced in **December 2024**, with Phase 1 construction expected to complete in **2026**[48](index=48&type=chunk) [4. Commercialization](index=17&type=section&id=4.%20Commercialization) The Group's short-term commercialization efforts will focus on core product CBT-001, including educating key opinion leaders and seeking third-party reimbursement; CBT-009's strategy will involve similar market education after Phase 3 trials commence - Commercialization preparations for CBT-001 include educating key opinion leaders and eye care professionals, and seeking third-party reimbursement from government and private insurance providers[49](index=49&type=chunk) - Exclusive commercialization licensing arrangements for CBT-001 have been established with **Grand Pharma (Greater China)** and **Santen (Asia Pacific region)**[50](index=50&type=chunk) - CBT-009 commercialization will focus on raising awareness for juvenile myopia through key opinion leader education and conference presentations, emphasizing the advantages of non-aqueous eye drops[51](index=51&type=chunk) [5. Collaboration and Licensing Arrangements](index=18&type=section&id=5.%20Collaboration%20and%20Licensing%20Arrangements) The Group has licensing agreements with Grand Pharma and Santen Pharmaceutical for CBT-001's development and commercialization, granting exclusive rights in Greater China and specific APAC regions, respectively - On **April 13, 2020**, the Grand Pharma License Agreement was entered into, granting exclusive manufacturing and commercialization rights for CBT-001 in Greater China to Grand Pharma[52](index=52&type=chunk) - On **August 6, 2024**, the Santen License Agreement was entered into, granting exclusive rights to develop, manufacture, and commercialize nintedanib-containing products (including CBT-001) in Japan, Korea, Vietnam, Thailand, Malaysia, Singapore, Philippines, and Indonesia to Santen[54](index=54&type=chunk) - Despite the license agreements, the Company retains effective control over all development activities for CBT-001 and is responsible for regulatory filings and approvals[53](index=53&type=chunk) [6. Intellectual Property](index=20&type=section&id=6.%20Intellectual%20Property) As of June 30, 2025, the Group holds 61 granted patents and 169 pending patent applications, with core products CBT-001 and CBT-009 having 46 and 2 granted patents, respectively - As of June 30, 2025, the Group holds **61 granted patents** and **169 pending patent applications**[55](index=55&type=chunk) - Core product **CBT-001** has **46 granted patents** and **63 pending patent applications** globally[55](index=55&type=chunk) - Core product **CBT-009** has **2 granted patents** and **23 pending patent applications** globally[55](index=55&type=chunk) [7. Human Resources](index=20&type=section&id=7.%20Human%20Resources) As of June 30, 2025, the Group had 60 full-time employees across China, the US, Hong Kong, and Germany, with the R&D team comprising 20 experienced professionals, 7 of whom hold master's degrees or higher - As of June 30, 2025, the Group had a total of **60 full-time employees**[56](index=56&type=chunk) Employee Functional Distribution | Function | Number of Employees | | :--- | :--- | | Management | 7 | | R&D | 15 | | Manufacturing | 5 | | Quality Control and Quality Assurance | 11 | | Administration | 22 | | Total | 60 | - The R&D team consists of **20 experienced professionals**, with **7 holding master's degrees or higher** and **5 holding doctoral degrees**[60](index=60&type=chunk) [8. Research and Development](index=20&type=section&id=8.%20Research%20and%20Development) The Group is dedicated to developing innovative ophthalmic drug candidates, all internally developed with potential to be first-in-class or best-in-class therapies, supported by three strategic R&D centers and two proprietary technology platforms - All drug candidates are internally developed, with the potential to be **first-in-class or best-in-class therapies**[58](index=58&type=chunk) - R&D operations are supported by **three strategic R&D centers** located in the United States and China[59](index=59&type=chunk) - The R&D strategy is based on two proprietary technology platforms: **multi-kinase inhibitors (MKI)** and **ADS**, used to develop drug candidates for anterior and posterior eye diseases, respectively[61](index=61&type=chunk) [9. Outlook](index=21&type=section&id=9.%20Outlook) The Group's long-term vision is to accelerate global clinical development of its drug pipeline, strengthen R&D capabilities and technology platforms, tailor diversified commercialization strategies, and expand organizational scale - Key focuses include advancing the drug pipeline, enhancing proprietary technology platforms, and preparing for the potential commercial launch of core products[62](index=62&type=chunk) - Strategies include accelerating global clinical development of the drug candidate pipeline, strengthening R&D capabilities, tailoring commercialization strategies, and expanding organizational scale[64](index=64&type=chunk) [10. Significant Events After Reporting Period](index=21&type=section&id=10.%20Significant%20Events%20After%20Reporting%20Period) CBT-004 eye drops achieved positive topline results in its Phase 2 clinical trial for vascularized pinguecula, showing significant improvements in conjunctival hyperemia and patient symptoms with a positive safety profile, and the Group plans to advance CBT-004 to Phase 3 development - CBT-004 eye drops achieved positive topline results in its Phase 2 clinical trial, showing statistically significant improvement in conjunctival hyperemia and significant improvement in all five common patient-reported symptoms[63](index=63&type=chunk) - No treatment-related adverse events were observed, with most adverse events being mild to moderate, indicating a positive safety profile[65](index=65&type=chunk) - The Group plans to advance CBT-004 to Phase 3 development and initiate discussions with the US FDA[65](index=65&type=chunk) [II. Financial Review](index=22&type=section&id=II.%20Financial%20Review) [Revenue](index=22&type=section&id=Revenue) As a clinical-stage ophthalmic biotechnology company, the Group generated no revenue from drug sales during the reporting period or the prior period - The Group generated no revenue from drug sales during the reporting period or the prior period[66](index=66&type=chunk) [Other Income](index=22&type=section&id=Other%20Income) Other income primarily stemmed from Suzhou local government grants for the Group's R&D activities, with grant amounts remaining largely stable compared to the prior period - Other income primarily refers to government grants received from the Suzhou local government for the Group's R&D activities[67](index=67&type=chunk) - The amount of grants received by the Group remained stable during the reporting period, largely consistent with the prior period[67](index=67&type=chunk) [Other Gains and Losses, Net](index=22&type=section&id=Other%20Gains%20and%20Losses%2C%20Net) The Group recorded a net exchange loss during the reporting period, primarily due to the conversion of US dollar deposits in China to Renminbi for daily operational use - The Group recorded an exchange loss during the reporting period due to the conversion of US dollar deposits in China to Renminbi for daily operational use[68](index=68&type=chunk) [General and Administrative Expenses](index=22&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased during the reporting period compared to the prior period, mainly due to higher listing expenses, increased headcount, and overall expenses from newly granted restricted share units - General and administrative expenses increased compared to the prior period, primarily due to higher listing expenses incurred by the Group during the reporting period[69](index=69&type=chunk) - Overall expenses also increased due to an increase in headcount and the granting of new restricted share units[69](index=69&type=chunk) [R&D Expenses](index=23&type=section&id=R%26D%20Expenses) R&D expenses increased during the reporting period compared to the prior period, primarily due to the granting of restricted share units to R&D personnel; clinical research expenses for CBT-001 decreased, and CBT-004's clinical research expenses also reduced following the completion of its Phase 2 clinical trial - The increase in R&D expenses compared to the prior period was due to the Company granting restricted share units to R&D personnel during the reporting period[70](index=70&type=chunk) Clinical Research Expenses Breakdown (For the six months ended June 30, USD '000) | Item | 2025 (USD '000) | 2025 (%) | 2024 (USD '000) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | **Core Products** | | | | | | – CBT-001 | 8,200 | 89.0 | 12,413 | 88.6 | | – CBT-009 | 223 | 2.4 | 173 | 1.2 | | **Other Drug Candidates** | 787 | 8.6 | 1,428 | 10.2 | | **Total** | 9,210 | 100.0 | 14,014 | 100.0 | - Clinical research expenses for CBT-001 decreased as activities related to the second Phase 3 clinical trial are planned for H2 2025[70](index=70&type=chunk) [Finance Income](index=23&type=section&id=Finance%20Income) Finance income decreased during the reporting period, primarily due to the Group utilizing funds from deposit accounts for R&D activities and daily operations, resulting in reduced bank deposit balances - The decrease in finance income was due to the Group utilizing funds from deposit accounts for R&D activities and daily operations, leading to a reduction in bank deposit balances[72](index=72&type=chunk) [Finance Costs](index=24&type=section&id=Finance%20Costs) Finance costs, primarily comprising interest expenses on lease liabilities for leased properties, showed no significant fluctuations during the reporting period or the prior period - Finance costs primarily consist of interest expenses on lease liabilities for leased properties, with no significant fluctuations[74](index=74&type=chunk) [Fair Value Changes of Financial Liabilities at FVTPL](index=24&type=section&id=Fair%20Value%20Changes%20of%20Financial%20Liabilities%20at%20FVTPL) During the reporting period, fair value changes of financial liabilities at FVTPL resulted in a gain of approximately $38.4 million, primarily due to a slight decrease in the Group's valuation and the granting of restricted share units - The Group recorded a gain of approximately **$38.4 million**, with fair value turning positive in the reporting period from a negative value in the prior period[75](index=75&type=chunk) - Reasons for the change include a slight decrease in the Group's valuation and the granting of **94,886,451 restricted share units** during the reporting period[75](index=75&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The Group funds its operations with cash inflows from equity financing; as of June 30, 2025, cash and cash equivalents were $15.1 million, down from $34.9 million on December 31, 2024, and the Group has $45.0 million in unutilized bank facilities - As of June 30, 2025, cash and cash equivalents amounted to **$15.1 million**, compared to **$34.9 million** on December 31, 2024[76](index=76&type=chunk) - The Group has **$45.0 million** in unutilized bank facilities, all of which are unrestricted[76](index=76&type=chunk) [Lease Liabilities](index=24&type=section&id=Lease%20Liabilities) Lease liabilities decreased from $0.5 million on December 31, 2024, to $0.3 million on June 30, 2025, primarily due to lease term expirations - Lease liabilities decreased from **$0.5 million** on December 31, 2024, to **$0.3 million** on June 30, 2025, primarily due to lease term expirations[77](index=77&type=chunk) [Capital Commitments](index=24&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments for construction work amounted to $1.05 million, with none on December 31, 2024 - As of June 30, 2025, the Group's capital commitments for construction work amounted to **$1.05 million** (December 31, 2024: nil)[78](index=78&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities, guarantees, or any material pending or potential litigation or claims that could significantly adversely affect any member of the Group - As of June 30, 2025, the Group had no significant contingent liabilities, guarantees, or any material pending or potential litigation or claims that could significantly adversely affect any member of the Group[79](index=79&type=chunk) [Capital Expenditure](index=25&type=section&id=Capital%20Expenditure) The Group's capital expenditure, primarily for property, plant, and equipment and intangible assets, remained stable at $0.1 million for both the reporting period and the prior period - Capital expenditure for the reporting period and the prior period was **$0.1 million** respectively[80](index=80&type=chunk) [Significant Investments](index=25&type=section&id=Significant%20Investments) The Group made no significant investments during the reporting period or the prior period, nor does it plan any significant investments or acquisitions of major capital assets - The Group made no significant investments during the reporting period or the prior period[81](index=81&type=chunk) [Significant Acquisitions and Disposals](index=25&type=section&id=Significant%20Acquisitions%20and%20Disposals) During the reporting period, the Group made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[82](index=82&type=chunk) [Foreign Exchange Risk and Hedging](index=25&type=section&id=Foreign%20Exchange%20Risk%20and%20Hedging) The Group is exposed to foreign currency risk but currently holds no financial instruments for hedging purposes, managing risk through close monitoring of exchange rate fluctuations - The Group is exposed to foreign currency risk but currently holds no financial instruments for hedging purposes[83](index=83&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had not pledged or charged any of its assets - As of June 30, 2025, the Group had not pledged or charged any of its assets[84](index=84&type=chunk) [Employees and Remuneration](index=26&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the Group had 60 employees, with total remuneration costs significantly increasing to $18.3 million from $8.7 million in the prior period, reflecting the Group's commitment to competitive compensation and equity incentive arrangements - As of June 30, 2025, the Group had **60 employees** (June 30, 2024: 48 employees)[85](index=85&type=chunk) - During the reporting period, the Group incurred total remuneration costs of **$18.3 million**, compared to **$8.7 million** in the prior period[85](index=85&type=chunk) - The Company has also adopted equity incentive arrangements to provide incentives to its employees[86](index=86&type=chunk) [Borrowings and Gearing Ratio](index=26&type=section&id=Borrowings%20and%20Gearing%20Ratio) As of June 30, 2025, the Group had no outstanding borrowings, maintaining a net cash position, rendering the gearing ratio inapplicable - As of June 30, 2025, the Group had no outstanding borrowings[87](index=87&type=chunk) - The Group maintained a net cash position, thus the gearing ratio is not applicable[87](index=87&type=chunk) [Interim Dividend](index=26&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[88](index=88&type=chunk) [Use of Proceeds from Global Offering](index=26&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds from the global offering, approximately HK$524.6 million, are primarily allocated to ongoing clinical R&D for core products CBT-001 and CBT-009, as well as production facilities and commercialization activities, with no significant changes to the intended use of proceeds - Net proceeds from the global offering amounted to approximately **HK$524.6 million**[89](index=89&type=chunk) Allocation and Expected Timeline for Use of Net Proceeds from Global Offering (HK$ million) | Use of Proceeds | Amount (HK$ million) | Percentage of Total (%) | Expected Timeline | | :--- | :--- | :--- | :--- | | Funding ongoing clinical R&D activities for core product CBT-001 | 327.4 | 62.4 | Before 2027 | | Funding ongoing clinical R&D activities for core product CBT-009 | 144.8 | 27.6 | Before 2029 | | Funding production facilities and commercialization activities | 28.8 | 5.5 | Before 2031 | | Working capital and other general corporate purposes | 23.6 | 4.5 | Before 2026 | | Total | 524.6 | 100 | | - There are no significant changes to the intended use of net proceeds[89](index=89&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) [Events Subsequent to the Reporting Period](index=27&type=section&id=Events%20Subsequent%20to%20the%20Reporting%20Period) Immediately prior to listing, all issued Class A, B, C ordinary shares and preference shares were converted into ordinary shares, and the authorized share capital increased; shares were listed on the Main Board of the Stock Exchange on July 3, 2025 - Immediately prior to the completion of the listing, all issued Class A, Class B, Class C ordinary shares, and preference shares were converted into ordinary shares at a **1:1 ratio**[91](index=91&type=chunk) - The Company's authorized share capital increased from **$100,000** to **$200,000**[91](index=91&type=chunk) - The shares have been listed on the Main Board of the Stock Exchange since the listing date[92](index=92&type=chunk) [Update on Equity Incentive Arrangements](index=28&type=section&id=Update%20on%20Equity%20Incentive%20Arrangements) The Company adopted several equity incentive arrangements, including Series B, Series C, the 2023 Equity Incentive Plan, and the Post-IPO Equity Incentive Plan; 94,886,451 restricted share units were granted to employees during the reporting period, and post-period, the Board resolved to cancel 4,509,673 unexercised restricted share units - The Company has adopted several equity incentive arrangements to incentivize and recognize the contributions of certain employees, officers, consultants, and/or service providers of the Group[93](index=93&type=chunk) - During the reporting period, share awards equivalent to **94,886,451 underlying shares** were granted to employees in the form of restricted share units[93](index=93&type=chunk) - On **August 29, 2025**, the Board resolved and approved the cancellation of **4,509,673 unexercised restricted share units**[96](index=96&type=chunk) [Changes in Directors' Information](index=29&type=section&id=Changes%20in%20Directors%27%20Information) From the prospectus date to this announcement date, there have been no changes in Board members or the Company's CEO, nor any changes in directors' and CEO's information requiring disclosure under Listing Rules 13.51(2) and 13.51B(1) - From the prospectus date to this announcement date, there have been no changes in Board members or the Company's CEO, nor any changes in directors' and CEO's information requiring disclosure under the Listing Rules[97](index=97&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) As shares were not listed on the Stock Exchange during the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during that period, with no such transactions from the listing date to this announcement date - As shares were not listed on the Stock Exchange during the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during that period[98](index=98&type=chunk) [Corporate Governance Practices](index=29&type=section&id=Corporate%20Governance%20Practices) The Company adopted and complied with the Corporate Governance Code since its listing date, except for Dr. Ni holding both Chairman and CEO roles, which the Board believes ensures unified leadership and efficient decision-making - The Company has adopted and complied with all applicable provisions of the Corporate Governance Code[99](index=99&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Dr. Ni, deviating from Code Provision C.2.1[99](index=99&type=chunk) - The Board believes this combination ensures unified leadership, efficient strategic planning and execution within the Group, and facilitates information flow between management and the Board[99](index=99&type=chunk) [Standard Code for Securities Transactions by Directors](index=30&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Standard Code for securities transactions by directors and senior management since its listing date, with all directors confirming strict compliance since then - The Company adopted the Standard Code as its own code for securities transactions, applicable to all directors and senior management, since the listing date[101](index=101&type=chunk) - Each director confirmed strict compliance with the required standards set out in the Standard Code from the listing date to this announcement date[101](index=101&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Company established an Audit Committee comprising Mr. Liu Chung Man (Chairman), Mr. Lai Hin Wing, and Ms. Nie Sijiang, which reviewed the Group's unaudited condensed consolidated interim financial information for the reporting period and deemed it compliant with applicable accounting standards and requirements - The Audit Committee comprises three directors: **Mr. Liu Chung Man (Chairman)**, **Mr. Lai Hin Wing**, and **Ms. Nie Sijiang**[102](index=102&type=chunk) - The Audit Committee's primary responsibilities include reviewing and monitoring the Group's financial reporting process, risk management, and internal control systems[102](index=102&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated interim financial information contained in this announcement and deemed it prepared in accordance with applicable accounting standards and relevant requirements[102](index=102&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=31&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the Stock Exchange and the Company's websites; the interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on both websites in due course - This announcement is published on the Stock Exchange website (www.hkexnews.hk) and the Company's website (https://cloudbreakpharma.com/)[103](index=103&type=chunk) - The interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the Stock Exchange and the Company's websites in due course[103](index=103&type=chunk) [Acknowledgement](index=31&type=section&id=Acknowledgement) The Board extends its sincere gratitude to shareholders, management, employees, and business partners for their support and contributions to the Group - The Board extends its sincere gratitude to shareholders, management, employees, and business partners for their support and contributions to the Group[104](index=104&type=chunk) [Glossary](index=31&type=section&id=Glossary) This section provides definitions for key terms and abbreviations used in the report, covering vocabulary related to corporate governance, finance, drug development, regulatory bodies, and geographical regions - The glossary provides definitions for key terms and abbreviations used in the report[105](index=105&type=chunk) - It covers terminology related to corporate governance, finance, drug development, regulatory bodies, and geographical regions[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) This section presents Manyidea Cloud Holdings Limited's unaudited consolidated interim results for the six months ended June 30, 2025, highlighting a shift from profit to loss despite revenue growth [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Manyidea Cloud Holdings Limited announced its unaudited consolidated interim results for the six months ended June 30, 2025, showing a shift from profit to loss, with revenue increasing by 21.6% year-on-year, but significant declines in gross profit and net profit Financial Performance Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,020,381 | 839,263 | 21.6% | | Gross Profit | 21,772 | 55,643 | -60.9% | | (Loss)/Profit Before Income Tax | (68,352) | 8,226 | -930.9% | | (Loss)/Profit for the Period | (60,627) | 7,167 | -945.9% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section provides the Group's consolidated financial statements, including statements of profit or loss, other comprehensive income, and financial position, for the six months ended June 30, 2025 [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue grew significantly, but a sharp rise in cost of revenue, reduced other income, and increased impairment losses on trade receivables led to a drastic decline in gross profit and net profit, resulting in a substantial loss Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,020,381 | 839,263 | 21.6% | | Cost of Revenue | (998,609) | (783,620) | 27.4% | | Gross Profit | 21,772 | 55,643 | -60.9% | | Other Income | 209 | 6,647 | -96.9% | | Selling and Marketing Expenses | (3,152) | (3,084) | 2.2% | | Administrative Expenses | (32,876) | (12,581) | 161.3% | | Net Impairment Loss on Trade and Other Financial Assets | (51,988) | (36,915) | 40.8% | | (Loss)/Profit Before Income Tax | (68,352) | 8,226 | -930.9% | | (Loss)/Profit for the Period | (60,627) | 7,167 | -945.9% | | Basic (Loss)/Earnings Per Share (RMB) | (0.814) | 0.007 | -11728.6% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets both decreased, with a significant reduction in cash and cash equivalents within current assets, while trade receivables remained high and current liabilities slightly increased, indicating liquidity pressure Key Data from Consolidated Statement of Financial Position | Indicator | 2025 June 30 (RMB Thousand) | 2024 December 31 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 105,927 | 93,487 | 13.3% | | Total Current Assets | 705,943 | 744,963 | -5.2% | | Total Assets | 811,870 | 838,450 | -3.2% | | Total Current Liabilities | 358,311 | 348,731 | 2.7% | | Net Current Assets | 347,632 | 396,232 | -12.3% | | Net Assets | 446,868 | 482,405 | -7.3% | | Cash and Cash Equivalents | 4,154 | 21,281 | -80.5% | | Equity Attributable to Owners of the Company | 442,039 | 480,973 | -8.1% | [Notes to the Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section details the Group's fundamental information, accounting policies, significant judgments, and specific financial item breakdowns, crucial for understanding the consolidated financial statements [Basic Information](index=6&type=section&id=Basic%20Information) Manyidea Cloud Holdings Limited was incorporated in the Cayman Islands in 2021, listed on the Hong Kong Stock Exchange in 2022, and primarily provides integrated marketing services in China as an investment holding company - The company was incorporated in the Cayman Islands on June 10, 2021, and listed on the Main Board of the Hong Kong Stock Exchange on November 9, 2022[9](index=9&type=chunk) - The Group primarily provides integrated marketing services in China[9](index=9&type=chunk) [Application of HKFRS](index=6&type=section&id=Application%20of%20HKFRS) The Group has adopted new or revised HKFRS effective from January 1, 2025, but these changes are not expected to have a significant impact on the current or prior period's results and financial position. The company is also assessing the impact of not-yet-effective amendments such as HKFRS 9, HKFRS 7, and HKFRS 18 on future financial statements - Amendments to HKFRS effective from January 1, 2025 (such as HKAS 21 and HKFRS 1) are not expected to have a significant impact on the Group's current or prior period's results and financial position[10](index=10&type=chunk) - The Group is analyzing not-yet-effective amendments such as HKFRS 9, HKFRS 7, and HKFRS 18 to assess their impact on future financial statements, with HKFRS 18 expected to significantly affect financial statement presentation[11](index=11&type=chunk)[12](index=12&type=chunk)[14](index=14&type=chunk) [Basis of Preparation](index=8&type=section&id=Basis%20of%20Preparation) The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance, using the historical cost convention (except for certain financial assets) and presented in RMB. Despite recording a loss and increased trade receivables, the Board believes the Group has the ability to continue as a going concern based on liquidity mitigation measures taken - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Hong Kong Companies Ordinance[15](index=15&type=chunk) - As of June 30, 2025, the Group incurred a loss of **RMB 60,627 thousand**, and the gross carrying amount of trade receivables increased from **RMB 802,516 thousand** as of December 31, 2024, to **RMB 856,584 thousand**[18](index=18&type=chunk) - To mitigate liquidity pressure, the Group has taken measures including actively communicating with banks for financing, strengthening credit control to accelerate collections, maintaining operations, and controlling administrative and finance costs[18](index=18&type=chunk)[19](index=19&type=chunk) [Significant Accounting Policies](index=10&type=section&id=Significant%20Accounting%20Policies) This section details the Group's accounting policies for consolidation, recognition and measurement of assets (including property, plant and equipment, intangible assets, financial instruments, interests in associates, and leased assets), revenue recognition, government grants, income tax, and asset impairment, providing a foundation for understanding the financial statements - The Group classifies investees as subsidiaries and includes them in the consolidated financial statements when it has control over them[20](index=20&type=chunk) - Impairment losses on financial assets are recognized using the Expected Credit Loss (ECL) model, with a simplified approach applied to trade receivables based on lifetime expected credit losses[28](index=28&type=chunk) - Revenue primarily derives from integrated marketing services, including content marketing, digital marketing, public relations event planning, media advertising, and SaaS interactive marketing services, with revenue generally recognized over time using the output method[45](index=45&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) [Significant Accounting Judgments and Key Sources of Estimation Uncertainty](index=24&type=section&id=Significant%20Accounting%20Judgments%20and%20Key%20Sources%20of%20Estimation%20Uncertainty) This section discloses management's key accounting judgments and estimates made in preparing the financial statements, primarily concerning the determination of functional currency, useful lives and residual values of property, plant and equipment and intangible assets, impairment of trade and other financial assets, and recognition of income tax and deferred income tax, all of which significantly impact the financial statement results - Key judgments include determining the functional currency of each entity, based on an assessment of the currency and economic environment that primarily influences the selling prices of goods and services[63](index=63&type=chunk) - Key sources of estimation uncertainty primarily arise from the useful lives and residual values of property, plant and equipment and intangible assets, and the impairment assessment of trade and other financial assets, which are influenced by economic conditions and forecasts of future cash flows[64](index=64&type=chunk)[65](index=65&type=chunk)[67](index=67&type=chunk) - The determination of income tax and deferred income tax requires significant judgment and assessment of future tax treatments and taxable profits[66](index=66&type=chunk) [Segment Information](index=26&type=section&id=Segment%20Information) The Group primarily provides integrated marketing services in China, including content marketing, digital marketing, public relations event planning, media advertising, and SaaS interactive marketing services. As the Chief Operating Decision Maker (CODM) reviews the financial performance of the Group as a whole, no discrete operating segment financial information is provided. All revenue and non-current assets are primarily attributable to mainland China - The Group's business primarily involves providing content marketing, digital marketing, public relations event planning, media advertising, and SaaS interactive marketing services in China[69](index=69&type=chunk) - No further information on operating segments is provided as the CODM reviews the Group as a whole[69](index=69&type=chunk) - For the six months ended June 30, 2025, and June 30, 2024, all revenue from external customers and all non-current assets (excluding deferred tax assets and financial assets) of the Group were primarily attributable to mainland China[70](index=70&type=chunk) - For the six months ended June 30, 2025, the Group's largest customer contributed **20.6%** of total revenue, compared to **10.6%** in the corresponding period of 2024[71](index=71&type=chunk) [Revenue](index=27&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue, totaling **RMB 1,020,381 thousand**, was entirely derived from integrated marketing services, representing a 21.6% year-on-year increase. All revenue is recognized over time, reflecting the continuous delivery of services Revenue Analysis | Revenue Type | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Integrated Marketing Services | 1,020,381 | 839,263 | | Timing of revenue recognition: | | | | Over time | 1,020,381 | 837,021 | | At a point in time | – | 2,242 | - The Group has applied the practical expedient to its performance obligations under integrated marketing service sales contracts, excluding information on remaining performance obligations for contracts with an original expected duration of one year or less[72](index=72&type=chunk) [Other Income](index=28&type=section&id=Other%20Income) For the six months ended June 30, 2025, the Group's other income significantly decreased by **96.9%** to **RMB 209 thousand**, primarily due to a substantial reduction in government grants and VAT input tax deductions Other Income Details | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Government grants | 198 | 5,277 | -96.2% | | Bank interest income | 11 | 31 | -64.5% | | Interest income from debt instruments measured at fair value through other comprehensive income | – | 369 | -100.0% | | Value-added tax ("VAT") input tax deduction | – | 969 | -100.0% | | Others | – | 1 | -100.0% | | Total | 209 | 6,647 | -96.9% | - Government grants primarily originate from local government authorities in China, supporting interest subsidies for first-time loans to small and medium-sized enterprises and industrial park policy support[74](index=74&type=chunk) [Other Gains and Losses](index=29&type=section&id=Other%20Gains%20and%20Losses) For the six months ended June 30, 2025, the Group recorded other gains of **RMB 696 thousand**, compared to gains of **RMB 277 thousand** in the prior period, with the primary change stemming from net exchange gains and losses Other Gains and Losses Details | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Net exchange gains and losses | 696 | 191 | | Loss on disposal of property, plant and equipment | – | 86 | | Total | 696 | 277 | [Finance Costs](index=29&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs were **RMB 1,621 thousand**, a year-on-year decrease of **8.0%**, primarily due to lower borrowing interest rates Finance Costs Details | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Interest expense on bank borrowings | 1,438 | 1,163 | 23.6% | | Interest expense on third-party loans | – | 570 | -100.0% | | Imputed interest expense on lease liabilities | 183 | 28 | 553.6% | | Total | 1,621 | 1,761 | -8.0% | [Loss Before Income Tax](index=30&type=section&id=Loss%20Before%20Income%20Tax) For the six months ended June 30, 2025, the Group recorded a loss before income tax of **RMB 68,352 thousand**, a significant decline of **930.9%** from a profit of **RMB 8,226 thousand** in the prior period, primarily impacted by increased cost of revenue, administrative expenses, and impairment losses Details of Expenses Related to (Loss)/Profit Before Income Tax | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Amortisation of intangible assets | 918 | 7,796 | | Cost of revenue | 998,609 | 783,620 | | Depreciation expenses | 1,556 | 1,641 | | Employee costs | 13,093 | 12,855 | | Impairment loss allowance recognized on trade receivables | 51,988 | 37,271 | | Research expenses included in administrative expenses | 24,222 | 2,327 | - The significant increase in loss before income tax is primarily due to substantial growth in cost of revenue, administrative expenses, and impairment loss allowance for trade receivables[77](index=77&type=chunk) [Income Tax (Credit)/Expense](index=31&type=section&id=Income%20Tax%20(Credit)%2FExpense) For the six months ended June 30, 2025, the Group recorded an income tax credit of **RMB 7,725 thousand**, compared to an expense of **RMB 1,059 thousand** in the prior period, a year-on-year decrease of **829.5%**, primarily due to a decline in profit before income tax. The Group benefits from various corporate income tax preferential policies in different regions Income Tax (Credit)/Expense Details | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current tax – PRC corporate income tax | 2,419 | 8,386 | | Deferred tax | (10,144) | (7,327) | | Income tax (credit)/expense | (7,725) | 1,059 | - Entities registered in the Cayman Islands and British Virgin Islands are exempt from corporate income tax, while Hong Kong subsidiaries are subject to a profits tax rate of **16.5%**[78](index=78&type=chunk) - Subsidiaries in mainland China enjoy preferential tax rates under various policies, including a 5-year corporate income tax exemption for a Xinjiang subsidiary (until December 31, 2027), a **15%** tax rate for another Xinjiang subsidiary, preferential tax rates for small and micro enterprises, and a **15%** preferential tax rate for a Hainan subsidiary[79](index=79&type=chunk)[80](index=80&type=chunk) - The weighted average applicable tax rate decreased from **12.9%** in the corresponding period of 2024 to **11.3%** in 2025[81](index=81&type=chunk) [Dividends](index=32&type=section&id=Dividends) For the six months ended June 30, 2025, and June 30, 2024, the company neither paid nor declared any dividends - The company neither paid nor declared any dividends during the reporting period[82](index=82&type=chunk) [Earnings/(Loss) Per Share](index=33&type=section&id=Earnings%2F(Loss)%20Per%20Share) For the six months ended June 30, 2025, basic loss per share attributable to owners of the company was **RMB 0.814**, compared to earnings per share of **RMB 0.007** in the prior period, primarily due to the net loss incurred. Diluted loss per share is the same as basic loss per share due to the absence of potentially dilutive ordinary shares Calculation of (Loss)/Earnings Per Share | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Annual (Loss)/Profit attributable to owners of the Company | (60,625) | 7,189 | | Weighted average number of ordinary shares for basic (loss)/earnings per share | 74,443,836 | 960,000,000 | | Basic (Loss)/Earnings Per Share (RMB) | (0.814) | 0.007 | - Diluted earnings per share is the same as basic earnings per share because there were no potentially dilutive ordinary shares outstanding for the six months ended June 30, 2025, and June 30, 2024[84](index=84&type=chunk) [Intangible Assets](index=34&type=section&id=Intangible%20Assets) As of June 30, 2025, the Group's net book value of intangible assets was **RMB 2,437 thousand**, a decrease from **RMB 3,355 thousand** as of December 31, 2024. The company changed the estimated useful lives of computer software and licenses from 3-10 years to 1-10 years and recognized an impairment loss of approximately **RMB 107,841 thousand** on SaaS intangible assets, reflecting the impact of AI technology development on SaaS business revenue Net Book Value of Intangible Assets | Item | 2025 June 30 (RMB Thousand) | 2024 December 31 (RMB Thousand) | | :--- | :--- | :--- | | Computer software | 2,424 | 3,262 | | Licenses | 13 | 93 | | Architectural design | – | – | | Total | 2,437 | 3,355 | - The Group changed the estimated useful lives of computer software and licenses from 3-10 years to 1-10 years, and this change in accounting estimate is expected to result in a reduction in amortization of approximately **RMB 16,900 thousand** for the year ending December 31, 2025[86](index=86&type=chunk)[87](index=87&type=chunk) - Due to an unexpected decline in SaaS business revenue caused by the rapid development of artificial intelligence, the Group conducted an impairment assessment of SaaS intangible assets, recognizing an impairment loss of approximately **RMB 107,841 thousand**[88](index=88&type=chunk)[89](index=89&type=chunk) [Trade and Other Receivables](index=36&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade receivables were **RMB 856,584 thousand**, with an impairment allowance of **RMB 292,664 thousand**, resulting in a net book value of **RMB 563,920 thousand**. The total trade receivables increased from the end of 2024, and the proportion of receivables over 6 months old rose, reflecting risks from extended customer settlement periods Trade Receivables and Impairment Allowance | Item | 2025 June 30 (RMB Thousand) | 2024 December 31 (RMB Thousand) | | :--- | :--- | :--- | | Trade receivables | 856,584 | 802,516 | | Less: Impairment loss allowance recognized | (292,664) | (240,675) | | Net amount | 563,920 | 561,841 | Aging Analysis of Trade Receivables (Before Impairment) | Aging | 2025 June 30 (RMB Thousand) | 2024 December 31 (RMB Thousand) | | :--- | :--- | :--- | | 1 to 6 months | 331,815 | 436,627 | | Over 6 months to 12 months | 261,182 | 139,784 | | Over 1 year to 2 years | 153,756 | 135,840 | | Over 2 years | 109,831 | 90,265 | | Total | 856,584 | 802,516 | - The impairment loss allowance for trade receivables increased from **RMB 111,482 thousand** at the beginning of 2024 to **RMB 292,664 thousand** as of June 30, 2025, reflecting increased credit risk[91](index=91&type=chunk) [Trade and Other Payables](index=37&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade payables were **RMB 49,102 thousand**, a slight decrease from **RMB 51,108 thousand** at the end of 2024. Trade payables are non-interest bearing, with payment terms generally ranging from 30 to 90 days Aging Analysis of Trade Payables | Aging | 2025 June 30 (RMB Thousand) | 2024 December 31 (RMB Thousand) | | :--- | :--- | :--- | | Within 6 months | 37,629 | 43,609 | | Over 6 months to 12 months | 3,280 | 1,193 | | Over 1 year to 2 years | 7,294 | 4,897 | | Over 2 years | 899 | 1,409 | | Total | 49,102 | 51,108 | [Share Capital](index=38&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital was **RMB 132 thousand**, comprising **73,290,324** shares. During the reporting period, the company undertook a share consolidation and completed two share issues, including a public offering in April 2024 and subscriptions in June 2024 and March 2025, to raise capital Changes in Issued and Fully Paid Share Capital | Time Point | Number of Shares | Amount (RMB Thousand) | | :--- | :--- | :--- | | As at January 1, 2024 | 800,000,000 | 72 | | Public offering on April 17, 2024 | 400,000,000 | 36 | | Share issue on June 15, 2024 | 160,000,000 | 15 | | As at December 31, 2024 and January 1, 2025 | 1,360,000,000 | 123 | | Share consolidation on February 12, 2025 | (1,292,000,000) | – | | Share issue on March 14, 2025 | 5,290,324 | 9 | | As at June 30, 2025 | 73,290,324 | 132 | - On February 12, 2025, the company undertook a share consolidation, where every twenty ordinary shares of HK$0.0001 each were consolidated into one ordinary share of HK$0.002 each[94](index=94&type=chunk) - In 2024 and March 2025, the company raised capital through a public offering to existing shareholders and subscriptions by independent private investors, primarily for purchasing media resources (especially Douyin distribution channels) and general working capital[94](index=94&type=chunk) [Management Discussion and Analysis](index=40&type=section&id=Management%20Discussion%20and%20Analysis) This section offers management's review of the Group's business performance, financial results, liquidity, and future outlook for the reporting period [Business Review and Outlook](index=40&type=section&id=Business%20Review%20and%20Outlook) In the first half of 2025, the company achieved stable overall revenue performance, with an increased proportion of revenue from major clients and its Douyin business entering a sustainable development trajectory. Looking ahead, the company will continue to focus on social media (e.g., Xiaohongshu, Tencent), enhance its performance-based solutions, and increase investment in AI-powered marketing - In the first half of 2025, the company achieved stable overall revenue performance, with an increasing proportion of revenue from major clients and its Douyin business entering a sustainable development trajectory[95](index=95&type=chunk) - In the second half of the year, the focus will be on social media platforms (Xiaohongshu, Tencent, etc.), enhancing performance-based solutions, concentrating on industry expertise, and improving media operations and traffic optimization capabilities[96](index=96&type=chunk) - The company will increase its efforts to expand AI technology-powered marketing capabilities[96](index=96&type=chunk) [Financial Review](index=40&type=section&id=Financial%20Review) This section provides a detailed review of financial performance during the reporting period. Total revenue increased by **21.6%** year-on-year, primarily driven by Douyin market expansion. However, a significant rise in media advertising resource costs led to a substantial decline in gross profit margin. Increased administrative expenses and impairment allowance for trade receivables further eroded profits, ultimately resulting in a shift from profit to loss - The company primarily provides integrated marketing solutions to clients in the fast-moving consumer goods, footwear and apparel, and household chemical industries in China[97](index=97&type=chunk) Key Financial Review Data | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,020,381 | 839,263 | 21.6% | | Cost of Revenue | 998,609 | 783,620 | 27.4% | | Gross Profit | 21,772 | 55,643 | -60.9% | | Selling and Marketing Expenses | 3,152 | 3,084 | 2.2% | | General and Administrative Expenses | 32,876 | 12,581 | 161.3% | | Impairment Loss Allowance on Trade and Other Financial Assets | 51,988 | 36,915 | 40.8% | | Other Income | 209 | 6,647 | -96.9% | | Finance Costs | 1,621 | 1,761 | -8.0% | | (Loss)/Profit Before Income Tax | (68,352) | 8,226 | -930.9% | | Income Tax (Credit)/Expense | (7,725) | 1,059 | -829.5% | | Net (Loss)/Profit | (60,627) | 7,167 | -945.9% | - The increase in cost of revenue was primarily due to rising digital marketing Douyin business revenue, leading to a **30.8%** year-on-year increase in media advertising resource costs[102](index=102&type=chunk) - The decline in gross profit was mainly due to the increased proportion of Douyin revenue, which generally has lower gross profit margins[105](index=105&type=chunk) - Administrative expenses significantly increased by **161.3%**, primarily due to increased investment in new research and development projects[108](index=108&type=chunk) - The impairment loss allowance for trade receivables increased by **40.8%**, mainly due to a substantial rise in revenue leading to a corresponding increase in trade receivables and higher bad debt provisions[109](index=109&type=chunk) [Capital Reserves and Capital Structure](index=45&type=section&id=Capital%20Reserves%20and%20Capital%20Structure) As of June 30, 2025, the Group's total equity was **RMB 446,868 thousand**, a decrease from December 31, 2024, primarily due to share subscriptions and net loss during the reporting period Composition of Total Equity | Item | 2025 June 30 (RMB Thousand) | 2024 December 31 (RMB Thousand) | | :--- | :--- | :--- | | Total Equity | 446,868 | 482,405 | | Share Capital | 132 | 123 | | Reserves | 441,907 | 480,850 | - The decrease in total equity was primarily due to share subscriptions and net loss during the reporting period[116](index=116&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The Group's working capital primarily originates from operating activities, but as of June 30, 2025, cash and bank balances significantly decreased, the current ratio slightly declined, and the gearing ratio increased, indicating certain liquidity pressure - The Group's working capital is primarily generated from operating activities, with cash inflows mainly from customer payments for integrated marketing services, and cash outflows primarily for media advertising resource costs and operating expenses[117](index=117&type=chunk) Liquidity Ratios | Indicator | 2025 June 30 (RMB Thousand) | 2024 December 31 (RMB Thousand) | | :--- | :--- | :--- | | Total Current Assets | 705,943 | 744,963 | | Total Current Liabilities | 358,311 | 348,731 | | Current Ratio | 2.0 times | 2.1 times | | Cash and bank balances | 4,154 | 21,281 | | Borrowings | 78,534 | 73,123 | | Gearing Ratio | 16.6% | 15.0% | [Capital Expenditure and Commitments](index=46&type=section&id=Capital%20Expenditure%20and%20Commitments) For the six months ended June 30, 2025, the Group's total capital expenditure was **RMB 979 thousand**, primarily for property, plant and equipment and right-of-use assets. There were no significant contracted but unprovided capital commitments during the period - Capital expenditure primarily includes expenses for property, plant and equipment, right-of-use assets, and intangible assets[118](index=118&type=chunk) Capital Expenditure Details | Item | 2025 June (RMB Thousand) | | :--- | :--- | | Property, plant and equipment | 420 | | Intangible assets | – | | Right-of-use assets | 559 | | Total | 979 | - As of June 30, 2025, the Group's total capital commitments contracted but not provided for in the consolidated financial statements for property, plant and equipment were approximately zero (June 30, 2024: **RMB 11,090 thousand**)[121](index=121&type=chunk) [Contingent Liabilities](index=47&type=section&id=Contingent%20Liabilities) For the six months ended June 30, 2025, the Group had no unrecorded significant contingent liabilities, guarantees, or any lawsuits filed against it - For the six months ended June 30, 2025, the Group had no unrecorded significant contingent liabilities, guarantees, or any lawsuits filed against it[122](index=122&type=chunk) [Foreign Exchange Risk Management](index=47&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group primarily operates in China, with most transactions settled in RMB, exposing it to foreign exchange risks related to USD and HKD. During the reporting period, the company did not hedge foreign exchange risks through long-term contracts, currency borrowings, or other means, and adopted prudent financial policies to manage cash flows - The Group primarily operates in China, with most transactions settled in RMB, exposing it to foreign exchange risks related to USD and HKD[123](index=123&type=chunk) - During the reporting period, the Group did not hedge foreign exchange risks through any long-term contracts, currency borrowings, or other means[123](index=123&type=chunk) [Credit Risk](index=48&type=section&id=Credit%20Risk) The Group's credit risk primarily arises from trade receivables and contract assets. The company has established policies to ensure services are provided to customers with appropriate credit histories and regularly reviews the recoverability of receivables to ensure adequate impairment loss provisions - Credit risk primarily arises from trade receivables and contract assets[124](index=124&type=chunk) - The company has established policies to ensure services are provided to customers with appropriate credit histories and regularly reviews the recoverability of individual receivables to ensure adequate impairment loss provisions for unrecoverable amounts[124](index=124&type=chunk) [Pledged Assets](index=48&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group had not pledged any assets - As of June 30, 2025, the Group had not pledged any assets[125](index=125&type=chunk) [Significant Investments, Acquisitions and Disposals](index=48&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) As of June 30, 2025, the Group had no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - As of June 30, 2025, the Group had no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[126](index=126&type=chunk) [Future Plans for Significant Investments and Capital Assets](index=48&type=section&id=Future%20Plans%20for%20Significant%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no significant investment plans or capital asset plans other than those disclosed in the prospectus - As of June 30, 2025, the Group had no significant investment plans or capital asset plans other than those disclosed in the company's prospectus published on October 28, 2022[127](index=127&type=chunk) [Employees](index=48&type=section&id=Employees) As of June 30, 2025, the Group had **116** employees. The company attracts, retains, and motivates qualified talent by offering competitive remuneration, benefits, and training programs, and participates in various social security schemes. Total employee costs slightly increased during the reporting period - As of June 30, 2025, the Group had **116** employees[128](index=128&type=chunk) - The company provides competitive salaries, bonuses, and share-based compensation to employees and participates in social security schemes as required by PRC regulations[128](index=128&type=chunk)[129](index=129&type=chunk) - During the reporting period, total employee costs for the Group's directors and other employees amounted to **RMB 13,093 thousand** (corresponding period in 2023: **RMB 12,855 thousand**), with the increase primarily due to higher revenue and staff turnover[129](index=129&type=chunk) [Equity Fundraising Activities in the Past Twelve Months](index=49&type=section&id=Equity%20Fundraising%20Activities%20in%20the%20Past%20Twelve%20Months) Within the twelve months preceding the reporting period, the company conducted two major equity fundraising activities: a June 2024 subscription raising approximately **HK$39.9 million**, primarily for Douyin media resources; and a March 2025 subscription raising approximately **HK$37.1 million**, also mainly for Douyin media resources and general working capital. Additionally, a July 2025 subscription was completed post-reporting period, raising approximately **HK$9.5 million** - On June 15, 2024, the company entered into agreements with two subscribers to subscribe for **160,000,000** shares at **HK$0.25** per share, raising net proceeds of approximately **HK$39.9 million**[130](index=130&type=chunk) - Approximately **75.19%** (approximately **HK$30 million**) of the net proceeds from the 2024 subscription were used for purchasing media resources (specifically Douyin distribution channels) and promotion, with the remaining **24.81%** (approximately **HK$9.9 million**) for general working capital, all of which had been utilized as of June 30, 2025[130](index=130&type=chunk)[131](index=131&type=chunk) - On March 14, 2025, the company entered into agreements with six subscribers to subscribe for **12,000,000** shares at **HK$3.10** per share, raising net proceeds of approximately **HK$37.1 million**[133](index=133&type=chunk) - Approximately **90.00%** (approximately **HK$33.39 million**) of the net proceeds from the March 2025 subscription were used for purchasing media resources (specifically Douyin distribution channels) and promotion, with the remaining **10.00%** (approximately **HK$3.71 million**) for general working capital. As of July 11, 2025, all these funds had been utilized[133](index=133&type=chunk)[134](index=134&type=chunk) - On July 11, 2025, the company entered into agreements with six subscribers to subscribe for **16,000,000** shares at **HK$0.6** per share, raising net proceeds of approximately **HK$9.5 million**, primarily for purchasing Douyin media resources and general working capital, and completed on July 21, 2025[135](index=135&type=chunk)[137](index=137&type=chunk) [Significant Events After the Reporting Period](index=52&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period and up to the date of this announcement, no other significant events occurred apart from the disclosed July 2025 subscription - No significant events occurred subsequent to the reporting period and up to the date of this announcement[138](index=138&type=chunk) [Purchase, Sale or Redemption of Securities](index=52&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities, and the company held no treasury shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities[139](index=139&type=chunk) - As of June 30, 2025, the company held no treasury shares[139](index=139&type=chunk) [Corporate Governance](index=52&type=section&id=Corporate%20Governance) The Board is committed to practicing good corporate governance standards and has adopted and applied the Corporate Governance Code set out in Appendix C1 of the Listing Rules. Except for the Chairman and Chief Executive Officer being the same person, the company complies with all applicable code provisions, an arrangement the Board believes is in the best interests of the company and its shareholders - The company has adopted and applied the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[141](index=141&type=chunk) - The roles of Chairman and Chief Executive Officer are held by the same person (Mr. Liu Jianhui), an arrangement the Board believes is in the best interests of the company and its shareholders as a whole[141](index=141&type=chunk) [Model Code for Securities Transactions](index=53&type=section&id=Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for directors' securities transactions and has complied with it since its listing date. No instances of non-compliance by directors or relevant employees were identified during the reporting period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for directors' securities transactions[142](index=142&type=chunk) - No instances of non-compliance with the Model Code by directors or relevant employees were identified during the reporting period[142](index=142&type=chunk) [Interim Dividend](index=53&type=section&id=Interim%20Dividend) The Board decided not to declare an interim dividend for the six months ended June 30, 2025 - The Board decided not to declare an interim dividend for the six months ended June 30, 2025[143](index=143&type=chunk) [Review by Audit Committee](index=54&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee has reviewed the accounting principles and policies adopted by the company and discussed the Group's internal controls and financial reporting matters, including the unaudited interim financial information for the six months ended June 30, 2025, deeming them compliant with applicable accounting standards, laws, and regulations - The Audit Committee comprises three members, with Ms. Zhou Yan serving as Chairman[144](index=144&type=chunk) - The Audit Committee has reviewed the unaudited interim financial information for the six months ended June 30, 2025, and considers it to be in compliance with applicable accounting standards, laws, and regulations[144](index=144&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=54&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the company's website and the Stock Exchange's website. The interim report for the six months ended June 30, 2025, will be published on the Stock Exchange and the company's website in due course and sent to shareholders upon request - This interim results announcement has been published on the company's website (www.manyidea.cloud) and the Stock Exchange's website (www.hkexnews.hk)[145](index=145&type=chunk) - The interim report for the six months ended June 30, 2025, will be published on the Stock Exchange and the company's website in due course and sent to the company's shareholders (if requested)[145](index=145&type=chunk)