```markdown [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group reported unaudited H1 2025 results, showing a **4.5%** revenue increase to **RMB 516 million**, a turnaround to profit, and significant improvements in EBITDA and net profit margins Financial Performance Summary | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 516.0 | 493.8 | +4.5% | | Gross Profit | 131.5 | 135.6 | -3.0% | | EBITDA/(LBITDA) | 28.6 | (11.1) | N/A | | Profit/(Loss) for the Period | 2.5 | (43.6) | N/A | | Gross Margin | 25.5% | 27.5% | -2.0 percentage points | | EBITDA/(LBITDA) Ratio | 5.5% | (2.2%) | +7.7 percentage points | | Net Profit/(Loss) Margin | 0.5% | (8.8%) | +9.3 percentage points | | Return on Equity (LTM) | 1.2% | (21.7%) | +22.9 percentage points | | Basic Earnings/(Loss) Per Share | RMB 0.01 | (RMB 0.33) | N/A | [Condensed Consolidated Financial Information](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Information) This section presents the unaudited condensed consolidated financial statements for H1 2025, outlining the Group's financial performance and period-end financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, the Group's revenue grew to **RMB 516 million**, with operating activities turning from loss to a **RMB 2.5 million** profit, despite increased cost of sales and a slight decrease in gross profit Financial Data Table | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 515,996 | 493,797 | | Cost of Sales | (384,462) | (358,217) | | Gross Profit | 131,534 | 135,580 | | Operating Profit/(Loss) | 12,115 | (33,273) | | Profit/(Loss) Before Tax | 3,497 | (43,645) | | Profit/(Loss) and Total Comprehensive Profit/(Loss) for the Period | 2,524 | (43,645) | | Basic Earnings/(Loss) Per Share | 0.01 | (0.33) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to **RMB 837 million** and total equity slightly grew, while net current liabilities improved but remained negative, indicating persistent liquidity pressure Financial Data Table | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 352,881 | 354,834 | | Current Assets | 484,249 | 439,007 | | Total Assets | 837,130 | 793,841 | | Total Equity | 217,043 | 214,519 | | Non-current Liabilities | 15,846 | 15,846 | | Current Liabilities | 604,241 | 563,476 | | Total Liabilities | 620,087 | 579,322 | | Net Current Liabilities | (119,992) | (124,469) | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides essential supplementary information, detailing the Group's background, financial statement preparation basis, accounting policy changes, financial risk management, segment information, and specific financial items [General Information](index=5&type=section&id=1%20General%20Information) Crayon Shin-chan Casual Food Group Co. Ltd. was incorporated in Bermuda, primarily producing and selling jelly, confectionery, beverages, and other snack foods, with its shares listed on the Hong Kong Stock Exchange Main Board - The Company was incorporated in Bermuda on May 4, **2004**, primarily engaged in the production and sale of jelly products, confectionery products, beverage products, and other snack foods[7](index=7&type=chunk) - The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) [Basis of Preparation](index=5&type=section&id=2%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared under IAS 34 on a going concern basis, despite current liabilities exceeding current assets, with the Board implementing measures to ensure continued operations - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard **34** 'Interim Financial Reporting'[8](index=8&type=chunk) - The Group recorded a net profit of approximately **RMB 2,524,000** as of June 30, **2025**, but its current liabilities exceeded its current assets by approximately **RMB 119,992,000**[8](index=8&type=chunk) - The Board believes that through bank borrowings, financial support from major shareholders, alternative external funding sources, cost control measures, and business restructuring plans, the Group will have sufficient working capital to continue as a going concern[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=3%20Changes%20in%20Accounting%20Policies) This period's financial information first adopted new and revised IFRS accounting standards, primarily IAS 21 (Revised) on lack of exchangeability, with no significant impact on the Group's interim financial statements - The Group first applied International Accounting Standard **21** (Revised) 'Lack of Exchangeability'[16](index=16&type=chunk) - This amendment had no significant impact on the condensed consolidated interim financial information and annual consolidated financial statements[17](index=17&type=chunk) [Financial Risk Management](index=8&type=section&id=4%20Financial%20Risk%20Management) The Group faces market risks (including currency and interest risk), credit risk, and liquidity risk, with no significant changes in risk management since year-end - The Group is exposed to market risks (including currency risk and interest risk), credit risk, and liquidity risk[18](index=18&type=chunk) - There have been no significant changes in the risk management department or any risk management policies since the year-end[19](index=19&type=chunk) [Segment Information](index=8&type=section&id=5%20Segment%20Information) The Group manages and assesses performance across four operating segments: jelly, confectionery, beverage, and other snack foods, with all operations, assets, liabilities, and capital expenditures located in China [Operating Segments](index=8&type=section&id=5.1%20Operating%20Segments) The chief operating decision-maker evaluates operating segment performance based on product categories (jelly, confectionery, beverages, other snack foods), focusing on segment revenue and results - The Group is principally engaged in the production and sale of jelly products, confectionery products, beverage products, and other snack foods[20](index=20&type=chunk) - The chief operating decision-maker assesses operating segment performance by product category, including jelly products, confectionery products, beverage products, and other snack foods[21](index=21&type=chunk) [Geographical Information](index=9&type=section&id=5.2%20Geographical%20Information) All of the Group's operating activities are conducted in China, therefore no geographical information is presented - All of the Group's operating activities are conducted in China, thus no geographical information is presented[23](index=23&type=chunk) [Major Customer Information](index=9&type=section&id=5.3%20Major%20Customer%20Information) For the six months ended June 30, 2025, Customer A contributed over **10%** of the Group's revenue, reaching **RMB 80,679 thousand**, an increase from the prior year Financial Data Table | Customer | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer A | 80,679 | 70,653 | [Segment Results for the Six Months Ended June 30, 2025](index=10&type=section&id=5.4%20Segment%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) In H1 2025, jelly products were the primary revenue source, contributing **RMB 471 million** with a gross profit of **RMB 122 million**, leading to total reportable segment results of **RMB 60.43 million** and a profit for the period of **RMB 2.524 million** Financial Data Table | Segment | Revenue (RMB thousand) | Cost of Sales (RMB thousand) | Gross Profit/(Loss) (RMB thousand) | Reportable Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Jelly Products | 470,686 | (348,643) | 122,043 | 56,057 | | Confectionery Products | 25,676 | (20,582) | 5,094 | 2,213 | | Beverage Products | 1,112 | (1,578) | (466) | (622) | | Other Snack Foods | 18,522 | (13,659) | 4,863 | 2,782 | | **Total Segments** | **515,996** | **(384,462)** | **131,534** | **60,430** | Financial Data Table | Reconciliation Item | Amount (RMB thousand) | | :--- | :--- | | Reportable Segment Results | 60,430 | | Corporate Income | 4,062 | | Corporate Expenses | (52,377) | | Operating Profit | 12,115 | | Profit Before Tax | 3,497 | | Profit for the Period | 2,524 | [Segment Results for the Six Months Ended June 30, 2024](index=12&type=section&id=5.5%20Segment%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202024) In H1 2024, jelly products were also the main revenue source, but confectionery product revenue exceeded H1 2025, with total reportable segment results of **RMB 14.945 million** and a loss for the period of **RMB 43.645 million** Financial Data Table | Segment | Revenue (RMB thousand) | Cost of Sales (RMB thousand) | Gross Profit (RMB thousand) | Reportable Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Jelly Products | 429,157 | (309,758) | 119,399 | 13,604 | | Confectionery Products | 56,183 | (41,570) | 14,613 | 1,693 | | Beverage Products | 1,860 | (1,623) | 237 | (200) | | Other Snack Foods | 6,597 | (5,266) | 1,331 | (152) | | **Total Segments** | **493,797** | **(358,217)** | **135,580** | **14,945** | Financial Data Table | Reconciliation Item | Amount (RMB thousand) | | :--- | :--- | | Reportable Segment Results | 14,945 | | Corporate Income | 4,993 | | Corporate Expenses | (53,211) | | Operating Loss | (33,273) | | Loss Before Tax | (43,645) | | Loss for the Period | (43,645) | [Other Income](index=14&type=section&id=6%20Other%20Income) The Group's H1 2025 other income totaled **RMB 3.984 million**, a decrease from **RMB 4.831 million** in the prior year, mainly due to reduced rental and miscellaneous income, despite a significant increase in government grants Financial Data Table | Income Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Rental Income | 1,291 | 1,825 | | Government Grants | 835 | 105 | | Miscellaneous Income | 2,418 | 2,994 | | Loss on Sale of Scraps | (560) | (93) | | **Total** | **3,984** | **4,831** | [Net Other Gains](index=14&type=section&id=7%20Net%20Other%20Gains) The Group's H1 2025 net other gains amounted to **RMB 78 thousand**, primarily from exchange gains, a decrease from **RMB 162 thousand** in the prior year Financial Data Table | Gain Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Exchange Gain | 78 | 162 | | **Total** | **78** | **162** | [Net Finance Costs](index=15&type=section&id=8%20Net%20Finance%20Costs) The Group's H1 2025 net finance costs were **RMB 8.618 million**, a decrease from **RMB 10.372 million** in the prior year, mainly due to reduced interest expense on bank borrowings Financial Data Table | Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | (8,638) | (10,140) | | Total Finance Costs | (8,659) | (10,501) | | Interest Income from Bank Deposits | 41 | 129 | | **Net Finance Costs** | **(8,618)** | **(10,372)** | [Profit/(Loss) Before Tax](index=15&type=section&id=9%20Profit%2F%28Loss%29%20Before%20Tax) This section lists major expense items affecting profit/loss before tax, including cost of inventories sold, advertising and promotion expenses, staff costs, and depreciation, with a notable decrease in advertising and promotion expenses Financial Data Table | Expense Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 306,411 | 295,322 | | Advertising and Promotion Expenses | 27,873 | 59,510 | | Staff Costs (Salaries and Bonuses) | 55,997 | 60,071 | | Depreciation of Property, Plant and Equipment | 14,106 | 13,986 | | Net Provision for Expected Credit Losses | 1,143 | 6,911 | [Taxation](index=16&type=section&id=10%20Taxation) The Group incurred income tax expense of **RMB 973 thousand** in H1 2025, primarily from PRC corporate income tax, with no tax provision for Hong Kong, Bermuda, and BVI due to absence of assessable profits Financial Data Table | Taxation Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax - PRC Enterprise Income Tax | 973 | – | | **Total** | **973** | **–** | - PRC Enterprise Income Tax is provided at a rate of **25%**, while no tax provision is made for Hong Kong, Bermuda, and the British Virgin Islands due to the absence of assessable profits[41](index=41&type=chunk)[42](index=42&type=chunk) [Earnings/(Loss) Per Share](index=17&type=section&id=11%20Earnings%2F%28Loss%29%20Per%20Share) The Group's H1 2025 basic earnings per share were **RMB 0.01**, a significant improvement from a loss of **RMB 0.33** per share in the prior year, with diluted EPS being the same as basic EPS due to no potential ordinary shares Financial Data Table | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Profit/(Loss) Attributable to Equity Holders of the Company (RMB thousand) | 2,524 | (43,645) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 218,416 | 132,898 | | Basic Earnings/(Loss) Per Share (RMB per share) | 0.01 | (0.33) | - There were no potential ordinary shares in issue for the six months ended June 30, **2025** and **2024**, thus diluted earnings/(loss) per share are the same as basic earnings/(loss) per share[45](index=45&type=chunk) [Dividends](index=17&type=section&id=12%20Dividends) The Company's Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, **2025** (**2024**: nil)[46](index=46&type=chunk) [Trade Receivables](index=18&type=section&id=13%20Trade%20Receivables) As of June 30, 2025, total trade receivables were **RMB 163 million**, a slight decrease from year-end 2024, with a general credit period of **180 days** and most amounts due within **30 days** Financial Data Table | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Less than 30 days | 156,605 | 155,418 | | 31 to 90 days | 3,752 | 6,410 | | 91 to 180 days | 2,371 | 3,661 | | **Total** | **162,728** | **165,489** | - The Group's revenue credit period is generally **180 days**[47](index=47&type=chunk) - The provision for expected credit losses on trade receivables is **RMB 56,026,000**[47](index=47&type=chunk) [Trade and Other Payables](index=19&type=section&id=14%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to **RMB 145 million**, mainly due to higher trade payables and bills payable, with supplier credit periods generally ranging from **30 to 60 days** Financial Data Table | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 69,321 | 39,560 | | Bills Payable | 10,000 | – | | Accrued Expenses | 17,509 | 13,751 | | Loan from a Director | 3,853 | – | | Other Payables and Accruals | 40,975 | 51,564 | | **Total** | **145,178** | **107,076** | - The credit period granted by suppliers generally ranges from **30 to 60 days**[49](index=49&type=chunk) - The Company has drawn **RMB 3,853,000** from a loan facility with Executive Director Mr. Zheng Yulong, bearing a fixed annual interest rate of **2%**[48](index=48&type=chunk) [Bank Borrowings](index=20&type=section&id=15%20Bank%20Borrowings) As of June 30, 2025, the Group's total bank borrowings were **RMB 458 million**, all secured and repayable on demand or within one year Financial Data Table | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Secured Bank Borrowings | 458,090 | 456,400 | | Unsecured Bank Borrowings | – | – | | **Total Bank Borrowings** | **458,090** | **456,400** | | Carrying amount of bank borrowings repayable: On demand or within one year | 458,090 | 456,400 | [Events After the Reporting Period](index=20&type=section&id=16%20Events

Financial Performance - Total revenue for the six months ended June 30, 2025, was RMB 17,336,455, a decrease of 3.9% compared to RMB 18,036,339 for the same period in 2024[16] - Profit attributable to ordinary shareholders for the same period was RMB 2,163,585, representing an increase of 3.8% from RMB 2,085,076 in 2024[16] - Basic earnings per share for the six months ended June 30, 2025, was RMB 0.51, up from RMB 0.49 in 2024[16] - The diluted earnings per share for the same period was RMB 0.47, compared to RMB 0.49 in 2024[16] - The average return on assets for the six months ended June 30, 2025, was 1.21%[16] - The average return on equity for the same period was 8.66%[16] - The debt-to-equity ratio as of June 30, 2025, was 83.65%[16] - Net interest margin for the six months ended June 30, 2025, was 4.51%[16] - Operating cost ratio for the same period was 50.70%[16] Revenue Breakdown - Financial services (interest income) contributed RMB 10,657,250 thousand, slightly down from RMB 10,699,938 thousand in the previous year[17] - The financial and consulting segment achieved revenue of RMB 11,090,499 thousand, accounting for 63.67% of total revenue, with a year-on-year increase of 2.10%[39] - Non-interest income represented 38.82% of total revenue, down from 40.90% in the previous year[41] - Interest income from the financial and consulting segment decreased by 0.40% to RMB 10,657,250 thousand, representing 61.18% of total revenue[42] Asset and Liability Management - Total assets as of June 30, 2025, reached RMB 363,799,616 thousand, up from RMB 361,642,055 thousand at the end of 2024, indicating a growth of 0.6%[18] - The company’s total liabilities amounted to RMB 304,321,722 thousand, a slight increase from RMB 302,589,203 thousand in the previous period[18] - The asset-liability ratio stood at 83.65%, a marginal decrease from 83.67% in the previous year[18] - The average balance of interest-earning assets was RMB 263,633,522 thousand, remaining stable compared to RMB 263,959,174 thousand in the first half of 2024[48] - Interest-earning assets accounted for 71.54% of total assets, with a slight increase of 2.35% from RMB 254,285,891 thousand to RMB 260,272,902 thousand[91] Asset Quality and Risk Management - The non-performing asset ratio was reported at 1.05%, slightly up from 1.04% in the previous year, indicating a stable asset quality[19] - The provision coverage ratio improved to 227.33% from 227.21% year-on-year, reflecting a strong buffer against potential losses[19] - The financial business maintained a stable non-performing asset ratio, ensuring asset quality remained controllable[33] - The ratio of non-performing assets was 1.05% as of June 30, 2025, compared to 1.07% at the end of 2024, indicating a stable asset quality[114] - The company has implemented a digital transformation strategy, integrating big data and AI to enhance risk assessment and management capabilities[112] Operational Efficiency - The company’s operating cost ratio increased to 50.70% from 43.57% in the previous year, indicating a rise in operational expenses relative to gross profit[17] - The group's pre-provision profit for the first half of 2025 was RMB 4,309,827 thousand, a decrease of RMB 341,901 thousand or 7.35% year-on-year, attributed to market changes and intensified competition[79] - The company's sales and administrative expenses amounted to RMB 3,878,758 thousand, an increase of RMB 339,773 thousand or 9.60% year-on-year[76] Financing and Capital Structure - The company issued approximately 430 million new shares, increasing equity attributable to ordinary shareholders by RMB 2,080 million, and reducing the debt-to-asset ratio by 0.57 percentage points[33] - The company issued USD 500 million in 3.5-year senior unsecured bonds, receiving high demand in the international market, indicating strong global resource acquisition capabilities[150] - The company has signed a USD 820 million sustainable development syndicated loan to support renewable energy and wastewater treatment projects[150] - The total equity as of June 30, 2025, was RMB 59,477,894 thousand, an increase of RMB 2,000,753 thousand or 3.48% from the end of 2024[165] Shareholder Information - The company declared an interim dividend of HKD 0.25 per share for the six months ended June 30, 2025[169] - The company’s major shareholders include China National Chemical Corporation with a 19.31% stake and Kong Fanxing with a 19.17% stake as of June 30, 2025[178] Future Outlook - The company anticipates stable growth in traditional financial services and aims to enhance operational efficiency and expand its business scale in the future[79] - The company is actively upgrading its strategy to reduce reliance on medical insurance and expand non-insurance business[32] - The company continues to expand its customer base in key industries such as cultural tourism, machinery manufacturing, and chemical pharmaceuticals, contributing to the growth of interest-earning assets[99]

[Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's financial performance, position, equity changes, and cash flows for the period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by 54.0% year-on-year to 2,145 thousand HKD, but gross profit turned from loss to gain, and both total loss and loss attributable to owners of the company narrowed, with loss per share also decreasing Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,145 | 4,658 | (2,513) | -54.0% | | Cost of Sales | (1,293) | (3,950) | 2,657 | -67.3% | | Gross Profit / (Loss) | 852 | 708 | 144 | 20.3% | | Other Income and Gains | 1,856 | 3,320 | (1,464) | -44.1% | | Administrative Expenses | (13,847) | (16,363) | 2,516 | -15.4% | | Loss Before Tax | (11,139) | (13,155) | 2,016 | -15.3% | | Loss for the Period | (11,139) | (13,155) | 2,016 | -15.3% | | Loss for the Period Attributable to Owners of the Company | (8,377) | (10,140) | 1,763 | -17.4% | | Basic and Diluted Loss Per Share | (0.20) HK cents | (0.24) HK cents | 0.04 HK cents | -16.7% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets slightly decreased, non-current assets remained stable, but net current assets significantly reduced, mainly due to a substantial decline in trade receivables, and total equity also decreased Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Non-current Assets | 91,254 | 91,168 | 86 | 0.09% | | Total Current Assets | 38,576 | 45,094 | (6,518) | -14.5% | | Trade Receivables | 769 | 7,035 | (6,266) | -89.1% | | Cash and Cash Equivalents | 8,685 | 7,626 | 1,059 | 13.9% | | Total Current Liabilities | 22,830 | 21,182 | 1,648 | 7.8% | | Net Current Assets | 15,773 | 23,912 | (8,139) | -34.0% | | Net Assets | 68,095 | 77,271 | (9,176) | -11.9% | | Total Equity | 68,095 | 77,271 | (9,176) | -11.9% | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the company decreased due to loss for the period and total other comprehensive loss, and non-controlling interests also declined, leading to a reduction in total equity Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company at January 1 | 98,949 | 134,192 | | Loss for the Period (Attributable to Owners of the Company) | (8,377) | (10,140) | | Other Comprehensive Income / (Loss) for the Period (Attributable to Owners of the Company) | 2,608 | (2,623) | | Equity Attributable to Owners of the Company at June 30 | 93,180 | 121,429 | | Total Equity at June 30 | 68,095 | 103,038 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities generated a net cash inflow of 241 thousand HKD, a significant improvement from the prior year, while cash outflow from investing activities slightly increased, and cash and cash equivalents at period-end grew Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Net Cash Flows From Operating Activities | 241 | (7,869) | 8,110 | | Net Cash Flows Used in Investing Activities | (33) | (6) | (27) | | Net Increase / (Decrease) in Cash and Cash Equivalents | 208 | (7,875) | 8,083 | | Cash and Cash Equivalents at End of Reporting Period | 8,685 | 18,923 | (10,238) | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. General Information](index=9&type=section&id=1.%20General%20Information) The company was incorporated in the Cayman Islands, later re-domiciled in Bermuda, and its shares are listed on GEM of the Hong Kong Stock Exchange, primarily engaged in investment holding, with the group mainly providing artist management services and investing in film, television programs, and online content - The company has been listed on GEM of the Hong Kong Stock Exchange since **March 26, 2002**[12](index=12&type=chunk) - The Group's principal businesses include artist management services and investment in film, television programs, and online content[12](index=12&type=chunk) [2. Basis of Preparation](index=9&type=section&id=2.%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the GEM Listing Rules, presented in HKD, and should be read in conjunction with the annual financial statements - The interim financial statements comply with Hong Kong Accounting Standard 34 and the disclosure requirements of the GEM Listing Rules[13](index=13&type=chunk) - All values are presented in **Hong Kong Dollars** and rounded to the nearest thousand[13](index=13&type=chunk) [3. Application of New and Revised Hong Kong Financial Reporting Standards](index=9&type=section&id=3.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The accounting policies used in these interim financial statements are consistent with those of the previous year, and the new and revised Hong Kong Financial Reporting Standards have no significant impact on the interim financial statements - The application of new and revised Hong Kong Financial Reporting Standards has **no significant impact** on the interim financial statements[15](index=15&type=chunk) [4. Segment Information](index=10&type=section&id=4.%20Segment%20Information) The Group has three reportable operating segments: artist management, film/television programs/online content, and new media; for the six months ended June 30, 2025, new media business revenue significantly increased, while film, television programs, and online content business revenue substantially decreased - The Group has three reportable operating segments: artist management, film/television programs/online content, and new media[17](index=17&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (thousand HKD) | 2024 Revenue (thousand HKD) | Revenue Change Rate | 2025 Results (thousand HKD) | 2024 Results (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Artist Management | 105 | 205 | -48.8% | (6) | 628 | | Film, Television Programs and Online Content | 397 | 3,569 | -88.9% | (9,181) | (4,840) | | New Media Business | 1,643 | 884 | 85.9% | (334) | (3,683) | | Total | 2,145 | 4,658 | -54.0% | (9,521) | (7,895) | - All revenue from external customers is derived from **Mainland China**[20](index=20&type=chunk) [5. Revenue](index=12&type=section&id=5.%20Revenue) For the six months ended June 30, 2025, new media business revenue significantly increased by 1,643 thousand HKD, becoming the primary source of income, while revenue from television and online programs, distribution agency services, and artist management all decreased Revenue Breakdown (For the six months ended June 30) | Business Type | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | New Media Business | 1,643 | 884 | 759 | 85.9% | | Television and Online Programs | 396 | 2,713 | (2,317) | -85.4% | | Distribution Agency Services | – | 855 | (855) | -100.0% | | Artist Management | 105 | 205 | (100) | -48.8% | | Total | 2,145 | 4,658 | (2,513) | -54.0% | [6. Other Income and Gains / (Losses)](index=13&type=section&id=6.%20Other%20Income%20and%20Gains%20%2F%20%28Losses%29) For the six months ended June 30, 2025, total other income and gains amounted to 1,856 thousand HKD, a decrease from the prior year, mainly due to the absence of film investment income, though rental income maintained stable growth Other Income and Gains Breakdown (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Film Investment Income | – | 1,039 | (1,039) | | Interest Income | 6 | 39 | (33) | | Rental Income | 1,077 | 1,037 | 40 | | Other Gains | 778 | 1,195 | (417) | | Total | 1,856 | 3,320 | (1,464) | [7. Loss Before Tax](index=14&type=section&id=7.%20Loss%20Before%20Tax) For the six months ended June 30, 2025, loss before tax was 11,139 thousand HKD, a narrowing from the prior year, with major expenses including depreciation and staff costs (salaries and allowances, pension scheme contributions) Loss Before Tax Components (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 2,556 | 2,683 | (127) | | Staff Costs (including directors' emoluments) | 8,060 | 8,562 | (502) | | - Salaries and Allowances | 7,576 | 8,067 | (491) | | - Pension Scheme Contributions | 484 | 495 | (11) | [8. Income Tax Expense](index=15&type=section&id=8.%20Income%20Tax%20Expense) No provision for income tax expense was made for the period as the Group generated no assessable profits or had assessable profits fully absorbed by carried forward tax losses in Hong Kong, Korea, and China - No provision for income tax expense was made for the period, as the Group had **no assessable profits** or they were offset by tax losses in Hong Kong, Korea, and China[24](index=24&type=chunk) [9. Loss Per Share Attributable to Ordinary Equity Holders of the Company](index=15&type=section&id=9.%20Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Company) For the six months ended June 30, 2025, basic and diluted loss per share was 0.20 HK cents, a narrowing from 0.24 HK cents in the prior year, mainly due to a decrease in loss attributable to owners of the company Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Company | 8,377 thousand HKD | 10,140 thousand HKD | (1,763) thousand HKD | | Weighted Average Number of Issued Shares | 4,209,130,000 shares | 4,209,130,000 shares | – | | Basic and Diluted Loss Per Share | (0.20) HK cents | (0.24) HK cents | 0.04 HK cents | - Share options and preference shares had an **anti-dilutive effect** on basic loss per share, thus no conversion was assumed for diluted loss per share calculation[25](index=25&type=chunk) [10. Trade Receivables](index=16&type=section&id=10.%20Trade%20Receivables) As of June 30, 2025, the balance of trade receivables significantly decreased to 769 thousand HKD, an 89.1% decline from 7,035 thousand HKD as of December 31, 2024, indicating improved trade receivables management Ageing Analysis of Trade Receivables (As of reporting period end) | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 769 | 7,035 | (6,266) | -89.1% | | Total | 769 | 7,035 | (6,266) | -89.1% | - The Group implements **strict control** over unpaid trade receivables, with a credit period generally ranging from **6 months to 1 year**[26](index=26&type=chunk) [11. Film Rights and Films and Television Programs in Progress](index=17&type=section&id=11.%20Film%20Rights%20and%20Films%20and%20Television%20Programs%20in%20Progress) As of June 30, 2025, the balance of film rights and films and television programs in progress was 14,638 thousand HKD, a slight decrease from 15,940 thousand HKD as of December 31, 2024, with no impairment indicators identified or impairment losses recognized during the period Balance of Film Rights and Films and Television Programs in Progress | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Film Rights and Films and Television Programs in Progress | 14,638 | 15,940 | (1,302) | - No impairment indicators were identified for film rights and films and television programs in progress during the period, and **no impairment losses were recognized**[28](index=28&type=chunk) [12. Trade Payables](index=17&type=section&id=12.%20Trade%20Payables) As of June 30, 2025, trade payables amounted to 343 thousand HKD, a decrease from 427 thousand HKD as of December 31, 2024, with all trade payables due within 1 year Ageing Analysis of Trade Payables (As of reporting period end) | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Within 1 year | 343 | 427 | (84) | | Total | 343 | 427 | (84) | [13. Share Capital](index=18&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the company's issued and fully paid ordinary shares numbered 4,209,130 thousand, with share capital of 42,090 thousand HKD, remaining unchanged from December 31, 2024 Share Capital Composition (As of reporting period end) | Share Type | June 30, 2025 (thousand shares) | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand shares) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Ordinary Shares of HKD0.01 each | 4,209,130 | 42,090 | 4,209,130 | 42,090 | [14. Fair Value Measurement](index=19&type=section&id=14.%20Fair%20Value%20Measurement) The Board believes that the carrying amounts of the Group's financial instruments approximate their fair values at the end of the reporting period - The carrying amounts of the Group's financial instruments are **similar to their fair values**[31](index=31&type=chunk) [15. Commitments](index=19&type=section&id=15.%20Commitments) As of June 30, 2025, the Group's contracted but not yet provided commitments primarily relate to film rights and films and television programs in progress, totaling 45,741 thousand HKD, a slight increase from the end of last year Contracted but Not Yet Provided Commitments (As of reporting period end) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Film Rights and Films and Television Programs in Progress | 45,741 | 45,060 | 681 | [16. Significant Related Parties and Related Party Transactions](index=19&type=section&id=16.%20Significant%20Related%20Parties%20and%20Related%20Party%20Transactions) For the six months ended June 30, 2025, total remuneration for key management personnel was 1,069 thousand HKD, largely consistent with the prior year Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Salaries and Allowances | 1,006 | 996 | 10 | | Pension Scheme Contributions | 66 | 73 | (7) | | Total | 1,069 | 1,072 | (3) | [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section offers insights into the Group's financial performance, business operations, and future outlook [Interim Dividend](index=20&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 first half of 2025[34](index=34&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's revenue decreased by 54.0% year-on-year to 2,145 thousand HKD, mainly due to a decline in film, television programs, and online content business revenue; both cost of sales and administrative expenses decreased, and loss attributable to owners of the company narrowed Key Financial Review Data (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 2,145 | 4,658 | -54.0% | | Cost of Sales | 1,293 | 3,950 | -67.3% | | Administrative Expenses | 13,847 | 16,363 | -15.4% | | Loss for the Period Attributable to Owners of the Company | 8,377 | 10,140 | -17.4% | - The decrease in revenue was primarily due to reduced revenue from the **film, television programs, and online content business**[35](index=35&type=chunk) [Business Review](index=21&type=section&id=Business%20Review) The Group adopts a cautious investment strategy in film, television programs, and online content, actively exploring re-distribution opportunities for existing works; artist management continues to discover potential artists; music business has accumulated a large number of copyrights and initiated agency distribution, while exploring a self-publishing model for independent musicians; new media business, centered on the Amber APP, integrates Web3.0 and AIGC technologies, achieving significant collaborations and breakthroughs in music, cultural tourism, and membership services, and plans to build a decentralized short video copyright trading platform [Film, Television Programs and Online Content](index=20&type=section&id=Film%2C%20Television%20Programs%20and%20Online%20Content) This segment's revenue significantly decreased; the Group maintains a cautious approach to online film investment, shifting towards re-distribution of existing works and overseas pre-sales. The theatrical film market is polarized, and the Group's invested comedy film "Moonlight Before the Window, Bang!" underperformed expectations, but a sequel "Diary of Prosperity 2" is planned for production. Leveraging its licensing advantages, the Group will explore customized content for online platforms and actively deploy a decentralized short video copyright trading platform Film, Television Programs and Online Content Segment Revenue (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Segment Revenue | 397 | 3,569 | -88.9% | - The Chinese online film market is facing a bottleneck, with only **3 new films** exceeding ten million in revenue in the first half, and total and average box office significantly decreased[40](index=40&type=chunk) - The Group continued a **cautious investment strategy** in online films during the first half, actively promoting multi-round distribution of historical projects "Tibetan Raiders" on CCTV6 and "See the Strange" overseas, effectively improving fund recovery rates[41](index=41&type=chunk) - The Group's co-invested comedy film "Moonlight Before the Window, Bang!" achieved a final box office of nearly **40 million HKD**, lower than expected due to market competition and other factors[43](index=43&type=chunk) - The sequel comedy film "Diary of Prosperity 2" is expected to start production in **November 2025** and be released in **2026**, aiming for the theatrical film market[43](index=43&type=chunk) - The Group plans to leverage blockchain technology to build a **decentralized short video copyright trading platform**, addressing traditional copyright transaction pain points through fragmentation, rights confirmation, and tokenization[45](index=45&type=chunk) [Artist Management](index=21&type=section&id=Artist%20Management) Artist management segment revenue decreased; the Group will continue to discover potential artists, collaborate with management teams, and leverage its resource advantages, combined with new media business, to create income streams and increase exposure opportunities for artists Artist Management Segment Revenue (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Segment Revenue | 105 | 205 | -48.8% | - The Group will leverage its resource advantages and integrate various business segments to **create income streams and increase exposure opportunities** for artists[46](index=46&type=chunk) [Music](index=25&type=section&id=Music) Lajin Music has accumulated a large number of original music copyrights and built a complete promotion and distribution channel, collaborating with mainstream domestic and international music platforms. Despite monetization efforts, impairment losses were recognized due to recoverable amounts being lower than costs. The Group is building a "self-publishing" one-stop service business model for original independent musicians, relying on its new media business - Lajin Music has accumulated a large number of **high-quality original music copyrights** and fully launched its music copyright agency distribution business, collaborating with mainstream domestic music platforms and radio stations[47](index=47&type=chunk) - Management has made corresponding impairment due to the **recoverable amount of music copyrights being lower than cost**[47](index=47&type=chunk) - The Group is building a "self-publishing" one-stop service business model specifically for original independent musicians, addressing issues such as creation, publishing, copyright, and revenue[48](index=48&type=chunk) [New Media Business](index=21&type=section&id=New%20Media%20Business) New media business revenue significantly increased, centered on the Amber APP, integrating Web3.0, AIGC, blockchain, and other technologies to provide creators with a self-publishing experience. The Amber PASS card product achieved significant breakthroughs in music, cultural tourism, and membership services, including strategic cooperation with Alipay, trial operation at tourist attractions like Badaling Great Wall, negotiations for cooperation with major cities, and expansion of personalized membership services New Media Business Segment Revenue (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Segment Revenue | 1,643 | 884 | 85.9% | - The Group invested resources to build the Amber APP, integrating blockchain, AIGC, digital watermarking, NFC, AR, and other technologies to explore a new business model of "**creator economy + musician self-publishing + music trendy play**"[49](index=49&type=chunk) - Amber APP provides original musicians with **100% copyright autonomy**, offering official blockchain notarization and ISRC certification through cooperation with China Copyright Chain Company[49](index=49&type=chunk) - The new media business achieved **significant collaborations and breakthroughs** in cultural tourism and membership services in the first half of 2025[50](index=50&type=chunk) - Strategic cooperation with Alipay was established to jointly develop cultural tourism projects and promote the cultural tourism PASS card, with Alipay providing technical support for developing the "**ticket stub**" economy[50](index=50&type=chunk) - The cultural tourism PASS card was **trial-operated at Badaling Great Wall in May 2025** and transitioned to a "to B" business model, where operators purchase and sell it[53](index=53&type=chunk) - The cultural tourism PASS card has been issued and sold in **other national-level scenic spots and popular museums**, and reported by CCTV News Channel[54](index=54&type=chunk) - The Group is negotiating strategic cooperation with major cities like **Xi'an** to extensively promote the PASS card and stimulate local consumption[56](index=56&type=chunk) - PASS card applications have expanded to personalized membership services, with contracts signed for medical systems and online consumption platform membership management systems, and negotiations for designing VR/AR promotional PASS cards for property developers[57](index=57&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the balance sheet date - No **significant events** occurred after the reporting period[58](index=58&type=chunk) [Liquidity and Financial Resources](index=30&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total assets were approximately 129,830 thousand HKD, and cash and cash equivalents increased to 8,685 thousand HKD; the Group primarily funds its operations through proceeds from fundraising activities Liquidity and Financial Resources (As of reporting period end) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Total Assets | 129,830 | 136,262 | (6,432) | | Cash and Cash Equivalents | 8,685 | 7,626 | 1,059 | - The Group funds its operations primarily through **proceeds from fundraising activities**[59](index=59&type=chunk) [Capital Structure](index=30&type=section&id=Capital%20Structure) As of the date of this report, the company has a total of 4,209,131,046 ordinary shares issued - The company has a total of **4,209,131,046 ordinary shares** issued[60](index=60&type=chunk) [Gearing Ratio](index=31&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio was approximately 66.3%, an increase from 59.6% as of December 31, 2024 Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 66.3% | 59.6% | 6.7% | [Pledge of the Group's Assets](index=31&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of June 30, 2025, the Group had no pledge of any assets - The Group had **no pledge of any assets** at the end of the reporting period[62](index=62&type=chunk) [Foreign Exchange Risk](index=31&type=section&id=Foreign%20Exchange%20Risk) The majority of the Group's revenue and expenses are denominated in RMB, and currently, no foreign currency derivative instruments are used to hedge foreign exchange risk, but management closely monitors and will consider hedging when necessary - The majority of the Group's revenue and expenses are denominated in **RMB**, and no foreign currency derivative instruments are used to hedge foreign exchange risk[63](index=63&type=chunk) [Commitments](index=31&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments were approximately 45,741 thousand HKD, a slight increase from the end of last year Capital Commitments (As of reporting period end) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Capital Commitments | 45,741 | 45,060 | 681 | [Contingent Liabilities](index=31&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had **no significant contingent liabilities** at the end of the reporting period[65](index=65&type=chunk) [Employees](index=31&type=section&id=Employees) As of June 30, 2025, the Group had a total of 54 employees, with 50 in China and 4 in Hong Kong; employee remuneration is assessed based on responsibilities, performance, experience, and industry practices Number of Employees | Region | Number of Employees | | :--- | :--- | | China | 50 | | Hong Kong | 4 | | Total | 54 | [Material Investments](index=32&type=section&id=Material%20Investments) For the period ended June 30, 2025, the Group held no material investments - The Group held **no material investments** during the reporting period[67](index=67&type=chunk) [Share Option Scheme](index=32&type=section&id=Share%20Option%20Scheme) The company adopted a new share option scheme in June 2024, valid for 10 years; as of June 30, 2025, there were no outstanding share options - The company adopted a new share option scheme on **June 21, 2024**, valid until **June 2034**[68](index=68&type=chunk) - As of June 30, 2025, there were **no outstanding share options**[69](index=69&type=chunk) [Arrangement to Purchase Shares or Debentures](index=32&type=section&id=Arrangement%20to%20Purchase%20Shares%20or%20Debentures) Except for the share option scheme and employee incentive scheme, neither the company nor its subsidiaries entered into any arrangements during the reporting period that would enable directors and chief executives to benefit from purchasing shares or debentures of the company or any other body corporate - During the reporting period, neither the company nor its subsidiaries entered into any arrangements that would enable directors and chief executives to **benefit from purchasing shares or debentures**[70](index=70&type=chunk) [Other Information](index=33&type=section&id=Other%20Information) This section includes details on major shareholders, directors' interests, corporate governance, and other statutory disclosures [Major Shareholders](index=33&type=section&id=Major%20Shareholders) As of June 30, 2025, Jiaxuan Group Co., Ltd., CITIC Group Corporation, and First Charm Investments Limited were the company's major shareholders, holding 47.10%, 10.93%, and 7.40% of the issued share capital respectively Major Shareholders' Shareholding (As of June 30, 2025) | Major Shareholder Name | Capacity | Interests in Shares (shares) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Jiaxuan Group Co., Ltd. | Beneficial Owner | 1,982,561,725 | 47.10% | | Pengjian Investment Holdings Limited | Interest of Controlled Corporation | 1,982,561,725 | 47.10% | | Mr. Huang Guangyu | Interest of Controlled Corporation | 1,982,561,725 | 47.10% | | Weihao Global Holdings Limited | Interest of Controlled Corporation | 1,982,561,725 | 47.10% | | Mr. Xu Zhongmin | Interest of Controlled Corporation | 1,982,561,725 | 47.10% | | CITIC Group Corporation | Interest of Controlled Corporation | 459,934,954 | 10.93% | | CITIC Limited | Interest of Controlled Corporation | 459,934,954 | 10.93% | | Famous Peak Investments Limited | Beneficial Owner | 459,934,954 | 10.93% | | First Charm Investments Limited | Beneficial Owner | 311,545,414 | 7.40% | | Mr. Ko Chun Shun, Johnson | Interest of Controlled Corporation | 311,545,414 | 7.40% | [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=34&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, no directors, chief executives, or their associates held any interests or short positions in the shares, underlying shares, or debentures of the company or any of its associated corporations - As of June 30, 2025, no directors, chief executives, or their associates held any **interests or short positions** in the company's or its associated corporations' shares, underlying shares, or debentures[73](index=73&type=chunk) [Competing Interests](index=34&type=section&id=Competing%20Interests) As of June 30, 2025, none of the directors, major shareholders, or their respective associates had any interests in any business that competes or is likely to compete with the Group's business - As of June 30, 2025, none of the directors, major shareholders, or their associates had any **competing interests** with the Group's business[74](index=74&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, neither the company nor its subsidiaries **purchased, sold, or redeemed any listed securities**[76](index=76&type=chunk) [Corporate Governance Practices](index=35&type=section&id=Corporate%20Governance%20Practices) The company generally complied with the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules during the reporting period, but there were three deviations concerning the distinction between the roles of Chairman and Chief Executive, designated terms for non-executive directors, and attendance of non-executive directors at general meetings - The company generally complied with the Corporate Governance Code, but there were **three deviations**: distinction between Chairman and Chief Executive roles, designated terms for non-executive directors, and non-executive directors' attendance at general meetings[77](index=77&type=chunk) - The positions of Chairman and Chief Executive remain vacant, and the company is **seeking suitable candidates**[78](index=78&type=chunk) - Non-executive directors do not have designated terms, but are subject to **retirement by rotation and eligible for re-election** in accordance with the company's articles of association[79](index=79&type=chunk) - Certain non-executive directors and independent non-executive directors were **unable to attend general meetings** due to other business commitments[80](index=80&type=chunk) [Code for Securities Transactions by Directors](index=36&type=section&id=Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a code for directors' securities transactions no less stringent than the GEM Listing Rules, and all directors confirmed compliance with the code and required standards of dealing - The company has adopted a code for directors' securities transactions, and all directors confirmed **compliance**[81](index=81&type=chunk) [Audit Committee](index=37&type=section&id=Audit%20Committee) The Audit Committee, comprising three members, is responsible for reviewing annual reports, financial statements, and interim reports, and providing advice and oversight on financial reporting and internal control procedures; the committee has reviewed this interim report and results - The Audit Committee consists of **three members** and is responsible for reviewing financial statements, internal controls, and financial reporting matters[83](index=83&type=chunk) - The Audit Committee has reviewed the interim report and results for the **six months ended June 30, 2025**[83](index=83&type=chunk)

[Interim Results Summary](index=1&type=section&id=2025%E5%B9%B4%20%E4%B8%AD%20%E6%9C%9F%20%E6%A5%AD%20%E7%B8%BE%20%E6%91%98%20%E8%A6%81) The company's interim performance for 2025 shows a significant increase in revenue but also an expanded loss, with a sharp decline in contracted sales | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales | 1.7 | 73.9 (Estimated) | -97.7% | | Revenue | 136.1 | 34.3 (Estimated) | +297.0% | | Gross Profit | 18.8 | 18.8 (Estimated) | +0.1% | | Loss | 240.9 | 228.1 (Estimated) | +5.6% | | Loss Attributable to Owners of the Parent | 250.8 | 227.8 (Estimated) | +10.1% | | Cash and Bank Balances | 27.9 | N/A | N/A | | Interim Dividend | Not Recommended | Nil | N/A | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E8%A1%A8) This section presents the company's financial position, performance, and cash flows for the interim period, highlighting key financial metrics and changes [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E6%90%8D%20%E7%9B%8A%20%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue significantly increased by 297% to RMB 136.1 million, but cost of sales also rose, keeping gross profit flat while loss expanded by 5.6% to RMB 240.9 million due to higher income tax and other expenses | Metric | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 136,144 | 34,292 | +297.0% | | Cost of Sales | (117,329) | (15,495) | +657.2% | | Gross Profit | 18,815 | 18,797 | +0.1% | | Other Income and Gains | 744 | 5,919 | -87.4% | | Selling and Distribution Expenses | (1,466) | (6,598) | -77.8% | | Administrative Expenses | (28,900) | (51,834) | -44.2% | | Net Fair Value Loss on Investment Properties | (500) | (3,044) | -83.6% | | Reversal/(Impairment) of Trade and Other Receivables | 49,305 | (932) | N/A | | Write-down of Inventories to Net Realizable Value | (23,452) | (14,823) | +58.2% | | Other Expenses | (77,340) | (19,023) | +306.6% | | Remeasurement of Financial Guarantee Contracts | (946) | 374 | N/A | | Finance Costs | (134,329) | (149,413) | -10.1% | | Share of Loss of Joint Ventures | (12,032) | (5,857) | +105.4% | | Loss Before Tax | (210,101) | (226,434) | -7.2% | | Income Tax Expense | (30,840) | (1,663) | +1754.5% | | Loss for the Period | (240,941) | (228,097) | +5.6% | | Loss Attributable to Owners of the Parent | (250,848) | (227,765) | +10.1% | | Basic and Diluted Loss Per Share (RMB) | (0.05) | (0.04) | +25.0% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E5%85%A8%20%E9%9D%A2%20%E6%94%B6%20%E7%9B%8A%20%E8%A1%A8) For the six months ended June 30, 2025, the company reported a loss of RMB 240.9 million, but total comprehensive loss for the period significantly narrowed by 27.3% year-on-year to RMB 203.9 million due to positive foreign exchange differences | Metric | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (240,941) | (228,097) | +5.6% | | Exchange Differences on Translation of Financial Statements of the Company | 11,803 | 7,302 | +61.6% | | Exchange Differences on Translation of Financial Statements of Subsidiaries | 25,287 | (59,628) | N/A | | Other Comprehensive Loss for the Period | 37,090 | (52,326) | N/A | | Total Comprehensive Loss for the Period | (203,851) | (280,423) | -27.3% | | Total Comprehensive Loss Attributable to Owners of the Parent | (213,758) | (280,091) | -23.7% | | Total Comprehensive Income/(Loss) Attributable to Non-controlling Interests | 9,907 | (332) | N/A | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E7%8B%80%20%E6%B3%81%20%E8%A1%A8) As of June 30, 2025, total non-current assets increased due to land held for development, but total current assets and liabilities decreased, leading to a further expansion of net current liabilities to RMB 4,421.8 million, indicating continued liquidity pressure | Metric | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 57,424 | 57,969 | -0.9% | | Investment Properties | 1,393,800 | 1,394,300 | -0.0% | | Land Held for Development for Sale | 2,081,079 | 1,809,295 | +15.0% | | Total Non-current Assets | 3,880,084 | 3,645,378 | +6.4% | | **Current Assets** | | | | | Properties Under Development | 1,858,737 | 3,113,417 | -40.3% | | Completed Properties Held for Sale | 1,049,686 | 915,949 | +14.6% | | Cash and Bank Balances | 27,867 | 37,179 | -25.0% | | Total Current Assets | 5,219,091 | 6,505,013 | -19.7% | | **Current Liabilities** | | | | | Trade Payables | 1,067,099 | 1,288,552 | -17.2% | | Interest-bearing Bank and Other Borrowings | 3,884,697 | 4,134,446 | -6.0% | | Total Current Liabilities | 9,640,903 | 10,424,641 | -7.5% | | **Net Position** | | | | | Net Current Liabilities | (4,421,812) | (3,919,628) | +12.8% | | Total Deficit | (601,727) | (334,475) | +79.9% | [Notes to the Unaudited Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E6%9C%AA%20%E7%B6%93%20%E5%AF%A9%20%E6%A0%B8%20%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E8%B3%87%20%E6%96%99%20%E9%99%84%20%E8%A8%BB) This section provides detailed explanatory notes to the interim condensed consolidated financial statements, covering company information, accounting policies, and specific financial items [1. Company Information](index=6&type=section&id=1.%20%E5%85%AC%20%E5%8F%B8%20%E8%B3%87%20%E6%96%99) The company is incorporated in the Cayman Islands, listed on the HKEX, primarily engaged in property development and investment in China, and controlled by Mr. Lun Shui Cheung and Ms. Chan Hau Wan - The company primarily engages in property development and investment business in China[8](index=8&type=chunk) - The ultimate and direct holding company is HEC Capital Limited, controlled by Mr. Lun Shui Cheung and his spouse Ms. Chan Hau Wan[8](index=8&type=chunk) [2.1 Basis of Presentation](index=6&type=section&id=2.1%20%E5%91%88%20%E5%88%97%20%E5%9F%BA%20%E6%BA%96) The company faces significant going concern uncertainties, including a net loss of RMB 240.9 million, net current liabilities of RMB 4,421.8 million, and approximately RMB 5,870.1 million in defaulted borrowings, despite management's mitigation efforts - As of June 30, 2025, the company incurred a net loss of approximately **RMB 240,941,000** and its current liabilities exceeded current assets by approximately **RMB 4,421,812,000**[9](index=9&type=chunk) - Interest-bearing bank and other borrowings and senior notes totaling approximately **RMB 5,870,125,000** were in default or cross-default and remained outstanding as of the financial statements approval date, constituting a material uncertainty regarding going concern[9](index=9&type=chunk) - The company has implemented measures to alleviate liquidity pressure, including accelerating property sales (including price reductions), engaging with the government for financial support, optimizing operations (reducing headcount, internalizing outsourced processes), and actively negotiating with lenders for loan renewals and refinancing[10](index=10&type=chunk)[13](index=13&type=chunk) [2.2 Basis of Preparation](index=7&type=section&id=2.2%20%E7%B7%A8%20%E8%A3%BD%20%E5%9F%BA%20%E6%BA%96) The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the HKEX Listing Rules, using the historical cost convention and presented in RMB - The financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the HKEX Listing Rules[12](index=12&type=chunk) - The financial statements are prepared on a historical cost basis and presented in RMB, with all amounts rounded to the nearest thousand[15](index=15&type=chunk) [2.3 Application of Hong Kong Financial Reporting Standards (Amendments)](index=8&type=section&id=2.3%20%E6%87%89%20%E7%94%A8%20%E9%A6%99%20%E6%B8%AF%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E5%91%8A%20%E6%BA%96%20%E5%89%87%EF%BC%88%E4%BF%AE%20%E8%A8%82%20%E6%9C%AC%EF%BC%89) The newly adopted and amended HKFRSs, including HKAS 21 (Amendments) "Lack of Exchangeability," have no material impact on the company's financial position, performance, or disclosures for the current period - New and amended Hong Kong Financial Reporting Standards (such as HKAS 21 (Amendments) "Lack of Exchangeability") have no material impact on the Group's financial position and performance[16](index=16&type=chunk) [3. Operating Segment Information](index=8&type=section&id=3.%20%E7%B6%93%20%E7%87%9F%20%E5%88%86%20%E9%83%A8%20%E8%B3%87%20%E6%96%99) The company operates in a single segment, property development and investment, with all revenue and most non-current assets derived from mainland China, thus no separate operating or geographical segment information is presented - The Group primarily operates in a single operating segment, which is property development and investment[17](index=17&type=chunk) - The Group's revenue and over **90%** of its non-current assets are derived from mainland China, thus no geographical information is presented[18](index=18&type=chunk) - For the six months ended June 30, 2025, no single external customer accounted for **10%** or more of the Group's total revenue[19](index=19&type=chunk) [4. Revenue, Other Income and Gains](index=9&type=section&id=4.%20%E6%94%B6%20%E7%9B%8A%E3%80%81%E5%85%B6%20%E4%BB%96%20%E6%94%B6%20%E5%85%A5%20%E5%8F%8A%20%E6%94%B6%20%E7%9B%8A) For the six months ended June 30, 2025, the company's revenue, primarily from property sales, significantly increased by 297% to RMB 136.1 million, while other income and gains decreased by 87.4% to RMB 0.7 million due to reduced interest and exchange gains | Revenue Source | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Property Sales | 117,834 | 18,213 | | Rental Income | 18,310 | 16,079 | | **Total Revenue** | **136,144** | **34,292** | | Other Income and Gains Source | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Bank Interest Income | 176 | 115 | | Other Rental Income | – | 559 | | Net Exchange Differences | – | 1,508 | | Others | 568 | 3,737 | | **Total Other Income and Gains** | **744** | **5,919** | [5. Finance Costs](index=10&type=section&id=5.%20%E8%B2%A1%20%E5%8B%99%20%E6%88%90%20%E6%9C%AC) For the six months ended June 30, 2025, the company's finance costs decreased by 10.1% to RMB 134.3 million, primarily due to increased capitalized interest offsetting higher interest on bank and other borrowings | Finance Cost Item | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Interest on Lease Liabilities | 19 | 48 | | Interest on Bank and Other Borrowings | 143,937 | 339,496 | | Interest on Senior Notes | 57,423 | 57,139 | | **Total** | **201,379** | **396,683** | | Less: Interest Capitalized | (67,050) | (247,270) | | **Net Finance Costs** | **134,329** | **149,413** | [6. Loss Before Tax](index=10&type=section&id=6.%20%E9%99%A4%20%E7%A8%85%20%E5%89%8D%20%E8%99%A7%20%E6%90%8D) For the six months ended June 30, 2025, the company's loss before tax narrowed by 7.2% to RMB 210.1 million, primarily due to a significant increase in cost of properties sold, partially offset by a net exchange gain | Item | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Cost of Properties Sold | 115,810 | 13,586 | | Direct Operating Expenses from Investment Properties Generating Rental Income | 1,519 | 1,908 | | Depreciation of Property, Plant and Equipment | 2,646 | 3,386 | | Depreciation of Right-of-use Assets | 564 | 1,484 | | Amortization of Intangible Assets | 677 | 683 | | Staff Costs (including Directors' Emoluments) | 13,416 | 21,751 | | Net Exchange Differences | 32,468 | (1,508) | [7. Income Tax](index=11&type=section&id=7.%20%E6%89%80%20%E5%BE%97%20%E7%A8%85) For the six months ended June 30, 2025, the company's income tax expense significantly increased by 1754.5% to RMB 30.8 million, mainly due to higher deferred income tax and increased land appreciation tax provisions from property sales - Entities registered in the Cayman Islands and British Virgin Islands are not subject to income tax, Hong Kong has no assessable profits, and mainland China subsidiaries are subject to a **25%** corporate income tax rate[25](index=25&type=chunk) - PRC Land Appreciation Tax is levied at progressive rates from **30%** to **60%** on the appreciation of land value[26](index=26&type=chunk) | Income Tax Item | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Current: PRC Enterprise Income Tax | 356 | 2 | | Current: PRC Land Appreciation Tax | 5,562 | 927 | | Deferred | 24,922 | 734 | | **Total Tax Expense for the Period** | **30,840** | **1,663** | [8. Loss Per Share Attributable to Owners of the Parent](index=11&type=section&id=8.%20%E6%AF%8D%20%E5%85%AC%20%E5%8F%B8%20%E6%93%81%20%E6%9C%89%20%E4%BA%BA%20%E6%87%89%20%E4%BD%94%20%E6%AF%8F%20%E8%82%A1%20%E8%99%A7%20%E6%90%8D) For the six months ended June 30, 2025, the company's basic and diluted loss per share increased to RMB 0.05 from RMB 0.04 in the prior period, primarily due to the increased loss attributable to owners of the parent | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Parent for Basic and Diluted Loss Per Share (Thousand RMB) | 250,848 | 227,765 | | Weighted Average Number of Ordinary Shares in Issue During the Period (Thousand Shares) | 5,254,000 | 5,254,000 | | Basic and Diluted Loss Per Share (RMB) | (0.05) | (0.04) | - Diluted loss per share is the same as basic loss per share because the exercise price of share options was higher than the average market price of shares[28](index=28&type=chunk) [9. Trade Receivables](index=12&type=section&id=9.%20%E8%B2%A8%20%E6%98%93%20%E6%87%89%20%E6%94%B6%20%E8%B3%A6%20%E6%AC%BE) As of June 30, 2025, the company's trade receivables increased to RMB 20.4 million from RMB 13.4 million as of December 31, 2024 | Trade Receivables | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Trade Receivables | 20,376 | 13,377 | [10. Trade Payables](index=12&type=section&id=10.%20%E8%B2%A8%20%E6%98%93%20%E6%87%89%20%E4%BB%98%20%E8%B3%87%20%E6%AC%BE) As of June 30, 2025, the company's total trade payables decreased to RMB 1,067.1 million from RMB 1,288.6 million as of December 31, 2024, with the majority due within one year | Ageing | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 486,871 | 529,145 | | 1 to 2 years | 242,720 | 385,752 | | Over 2 years | 337,508 | 373,655 | | **Total** | **1,067,099** | **1,288,552** | [11. Interim Dividend](index=12&type=section&id=11.%20%E4%B8%AD%20%E6%9C%9F%20%E8%82%A1%20%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[32](index=32&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=%E7%AE%A1%20%E7%90%86%20%E5%B1%A4%20%E4%B9%8B%20%E8%A8%8E%20%E8%AB%96%20%E5%8F%8A%20%E5%88%86%20%E6%9E%90) This section provides an overview of the company's business performance, financial results, liquidity, and future outlook, along with key operational and financial metrics [Overall Review](index=13&type=section&id=%E6%95%B4%20%E9%AB%94%20%E6%A6%82%20%E8%A6%BD) China's property market continued its deep adjustment in 2025 under the "houses are for living, not for speculation" policy, while the company focused on its "one core, two wings" strategy in high-value cities - China's real estate market continued to experience deep adjustments in 2025, with the government maintaining its policy of "houses are for living, not for speculation, and policies vary by city"[33](index=33&type=chunk) - The company's strategy is to "base itself in the Greater Bay Area, deeply cultivate Dongguan, and expand into high-value cities in South China, Central China, and East China," with a business structure of "residential development as the main business, urban renewal as the core, and cultural tourism, health, and scientific innovation industries as two wings"[33](index=33&type=chunk) [Business Review](index=13&type=section&id=%E6%A5%AD%20%E5%8B%99%20%E5%9B%9E%20%E9%A1%A7) The company's total revenue increased by 297% to RMB 136.1 million, primarily from property sales, despite a significant decline in contracted sales and average selling price, while actively managing its land bank and urban redevelopment projects - For the six months ended June 30, 2025, the company's total revenue was approximately **RMB 136.1 million**, an increase of approximately **297%** year-on-year, primarily from property sales[34](index=34&type=chunk) [Contracted Sales](index=13&type=section&id=%E5%90%88%20%E7%B4%84%20%E9%8A%B7%20%E5%94%AE) For the six months ended June 30, 2025, the company's contracted sales, including joint ventures, decreased by 97.7% to approximately RMB 1.7 million, with contracted sales GFA down by 93.3% to 437.1 square meters | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales (Million RMB) | 1.7 | 73.9 | -97.7% | | Contracted Sales GFA (sq.m.) | 437.1 | 6,524.0 (Estimated) | -93.3% | [Property Sales](index=14&type=section&id=%E7%89%A9%20%E6%A5%AD%20%E9%8A%B7%20%E5%94%AE) For the six months ended June 30, 2025, property sales revenue increased by 547.0% to approximately RMB 117.8 million, accounting for 86.6% of total revenue, with confirmed GFA sold increasing by 761.0% but average selling price decreasing by 24.9% | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Property Sales Revenue (Million RMB) | 117.8 | 18.2 (Estimated) | +547.0% | | Total GFA of Properties Sold Recognized (sq.m.) | 23,929 | 2,779 (Estimated) | +761.0% | | Average Selling Price (RMB/sq.m.) | 4,924 | 6,554 (Estimated) | -24.9% | | City | GFA Recognized (sq.m.) | % of Total GFA | Average Selling Price (RMB/sq.m.) | Revenue (Thousand RMB) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | Dongguan | 51 | 0.2% | 2,235 | 114 | 0.1% | | Heyuan | 22,836 | 95.5% | 5,012 | 114,450 | 97.2% | | Hengyang | 152 | 0.6% | 5,697 | 866 | 0.7% | | Changsha | 890 | 3.7% | 2,701 | 2,404 | 2.0% | | **Total** | **23,929** | **100%** | **4,924** | **117,834** | **100%** | [Projects and Land Parcels](index=15&type=section&id=%E9%A0%85%20%E7%9B%AE%20%E5%8F%8A%20%E5%9C%B0%20%E5%A1%8A) The company holds various property projects and land parcels in Dongguan, Heyuan, Hefei, Hengyang, and Changsha, with a total GFA sold of 2,054,214 sqm, GFA for sale of 536,916 sqm, and investment properties of 125,230 sqm - The company owns multiple projects in Dongguan, Heyuan, Hefei, Hengyang, and Changsha, with a total GFA sold of **2,054,214 sq.m.** and GFA for sale of **536,916 sq.m.**[38](index=38&type=chunk) [Investment Properties](index=16&type=section&id=%E6%8A%95%20%E8%B3%87%20%E7%89%A9%20%E6%A5%AD) As of June 30, 2025, the company owned investment properties with a total GFA of approximately 125,230 sqm (leasable area of approximately 38,013 sqm), generating rental income of approximately RMB 7.1 million for the period - As of June 30, 2025, the company owned investment properties with a total GFA of approximately **125,230 sq.m.** and a leasable area of approximately **38,013 sq.m.**[39](index=39&type=chunk) - Rental income for the six months ended June 30, 2025, was approximately **RMB 7.1 million**[39](index=39&type=chunk) [Land Bank](index=16&type=section&id=%E5%9C%9F%20%E5%9C%B0%20%E5%84%B2%20%E5%82%99) As of June 30, 2025, the company's land bank comprised approximately 2,175,219 sqm across 15 projects and 3 land parcels in 5 cities, primarily in Hengyang and Heyuan - As of June 30, 2025, the company's land bank was approximately **2,175,219 sq.m.**, comprising **15 projects** and **3 land parcels**[40](index=40&type=chunk) | Location | Total Land Bank GFA (sq.m.) | % of Total Land Bank GFA | | :--- | :--- | :--- | | Dongguan | 36,523 | 1.7% | | Heyuan | 795,889 | 36.6% | | Hefei | 64,648 | 3.0% | | Hengyang | 1,190,284 | 54.7% | | Changsha | 87,875 | 4.0% | | **Total** | **2,175,219** | **100%** | ["Three Olds" Redevelopment Projects](index=17&type=section&id=%E4%B8%89%20%E8%88%8A%20%E6%94%B9%20%E9%80%A0%20%E9%A0%85%20%E7%9B%AE) The company has multiple "Three Olds" redevelopment projects in Dongguan City, totaling 2,229,500 sqm, with the Zhangmutou Baoshan area approved and Humen Xinwan area suspended due to planning changes - The company has "Three Olds" redevelopment projects in Dongguan City with a total site area of **2,229,500 sq.m.**[44](index=44&type=chunk)[45](index=45&type=chunk) - The Zhangmutou Baoshan area has received approval, with an estimated GFA of **367,222 sq.m.**[45](index=45&type=chunk) - The Humen Xinwan area's urban renewal process has been suspended due to Guangdong Province's spatial planning adjustments[45](index=45&type=chunk) [Financial Review](index=18&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E5%9B%9E%20%E9%A1%A7) For the six months ended June 30, 2025, total revenue increased by 297% to RMB 136.1 million, but gross profit margin significantly dropped to 13.8% from 54.8%, leading to a 5.6% increase in loss to RMB 240.9 million, impacted by lower margins, reduced other income, higher other expenses (exchange losses), and increased income tax - For the six months ended June 30, 2025, total revenue was approximately **RMB 136.1 million**, an increase of approximately **297%** year-on-year[46](index=46&type=chunk) - Loss for the period was approximately **RMB 240.9 million**, an increase of **5.6%** year-on-year[46](index=46&type=chunk) [Overall Performance](index=18&type=section&id=%E6%95%B4%20%E9%AB%94%20%E8%A1%A8%20%E7%8F%BE) For the six months ended June 30, 2025, total revenue increased by 297%, gross profit remained flat, but both loss for the period and loss attributable to owners of the parent increased | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 136.1 | 34.3 | +297.0% | | Gross Profit Amount | 18.8 | 18.8 | +0.1% | | Loss for the Period | 240.9 | 228.1 | +5.6% | | Loss Attributable to Owners of the Parent | 250.8 | 227.8 | +10.1% | [Revenue](index=18&type=section&id=%E6%94%B6%20%E7%9B%8A) Revenue increased by 297% to approximately RMB 136.1 million, driven by a 761.0% increase in GFA delivered to 23,929 sqm, despite a 24.9% decrease in average selling price due to changes in property mix - Revenue increased by **297%** to **RMB 136.1 million**[47](index=47&type=chunk) - GFA delivered increased by **761.0%** to **23,929 sq.m.**[47](index=47&type=chunk) - Average selling price decreased by **24.9%** to **RMB 4,924 per sq.m.**, primarily due to changes in the product mix of properties delivered[47](index=47&type=chunk) [Cost of Sales](index=18&type=section&id=%E9%8A%B7%20%E5%94%AE%20%E6%88%90%20%E6%9C%AC) Cost of sales increased from approximately RMB 15.5 million to RMB 117.3 million, primarily due to a significant increase in GFA delivered | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 117.3 | 15.5 | +657.2% | - The increase in cost of sales was primarily due to a significant increase in GFA delivered[48](index=48&type=chunk) [Gross Profit and Gross Profit Margin](index=18&type=section&id=%E6%AF%9B%20%E5%88%A9%20%E5%8F%8A%20%E6%AF%9B%20%E5%88%A9%20%E7%8E%87) Gross profit remained flat at approximately RMB 18.8 million, but gross profit margin significantly decreased from 54.8% to 13.8%, mainly due to changes in product and geographical mix and lower average selling prices of properties delivered in 2025 | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 18.8 | 18.8 | +0.1% | | Gross Profit Margin | 13.8% | 54.8% | -41.0 percentage points | - The decrease in gross profit margin was primarily due to changes in the product and geographical mix of properties delivered in 2025 and relatively lower average selling prices[49](index=49&type=chunk) [Other Income and Gains](index=19&type=section&id=%E5%85%B6%20%E4%BB%96%20%E6%94%B6%20%E5%85%A5%20%E5%8F%8A%20%E6%94%B6%20%E7%9B%8A) Other income and gains decreased from approximately RMB 5.9 million to RMB 0.7 million, primarily due to a reduction in interest income from joint ventures and foreign exchange gains | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 0.7 | 5.9 | -87.4% | - The decrease was primarily due to a reduction in interest income from joint ventures of approximately **RMB 3.7 million** and a decrease in foreign exchange gains of approximately **RMB 1.5 million**[50](index=50&type=chunk) [Fair Value Loss on Investment Properties](index=19&type=section&id=%E6%8A%95%20%E8%B3%87%20%E7%89%A9%20%E6%A5%AD%20%E5%85%AC%20%E5%B9%B3%20%E5%80%BC%20%E8%99%A7%20%E6%90%8D) Fair value loss on investment properties decreased from approximately RMB 3.0 million to RMB 0.5 million, primarily due to market valuation fluctuations | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Fair Value Loss on Investment Properties | 0.5 | 3.0 | -83.3% | - The decrease in loss was primarily due to market valuation fluctuations[51](index=51&type=chunk) [Selling and Distribution Expenses](index=19&type=section&id=%E9%8A%B7%20%E5%94%AE%20%E5%8F%8A%20%E5%88%86%20%E9%8A%B7%20%E9%96%8B%20%E6%94%AF) Selling and distribution expenses decreased from approximately RMB 6.6 million to RMB 1.5 million, mainly due to reduced marketing and promotion expenses and office expenses | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 1.5 | 6.6 | -77.3% | - The decrease was primarily due to a reduction in marketing and promotion expenses of approximately **RMB 4.7 million** and a decrease in office expenses of approximately **RMB 0.9 million**[52](index=52&type=chunk) [Administrative Expenses](index=19&type=section&id=%E8%A1%8C%20%E6%94%BF%20%E9%96%8B%20%E6%94%AF) Administrative expenses decreased from approximately RMB 51.8 million to RMB 28.9 million, primarily due to reduced employee salaries, taxes, and intermediary service fees | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 28.9 | 51.8 | -44.2% | - The decrease was primarily due to a reduction in employee salary expenses of approximately **RMB 8.7 million**, a decrease in taxes and fees of approximately **RMB 4.7 million**, and a decrease in intermediary service fees and business entertainment expenses of approximately **RMB 9.6 million**[53](index=53&type=chunk) [Other Expenses](index=19&type=section&id=%E5%85%B6%20%E4%BB%96%20%E9%96%8B%20%E6%94%AF) Other expenses increased from approximately RMB 19.0 million to RMB 77.3 million, primarily due to an increase in foreign exchange losses | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 77.3 | 19.0 | +306.8% | - The increase was primarily due to an increase in foreign exchange losses of approximately **RMB 32.5 million**[54](index=54&type=chunk) [Share of Loss of Joint Ventures](index=19&type=section&id=%E5%88%86%20%E4%BD%94%20%E5%90%88%20%E8%B3%87%20%E4%BC%81%20%E6%A5%AD%20%E8%99%A7%20%E6%90%8D) Share of loss of joint ventures increased from approximately RMB 5.9 million to RMB 12.0 million, primarily due to increased losses from a Hunan joint venture | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Share of Loss of Joint Ventures | 12.0 | 5.9 | +103.4% | - The increase was primarily due to increased losses from the Hunan joint venture in 2025[55](index=55&type=chunk) [Finance Costs](index=20&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E6%88%90%20%E6%9C%AC) Finance costs decreased from approximately RMB 149.4 million to RMB 134.3 million, primarily due to a reduction in loan balances | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 134.3 | 149.4 | -10.1% | - The decrease was primarily due to a reduction in loan balances[56](index=56&type=chunk) [Income Tax Expense](index=20&type=section&id=%E6%89%80%20%E5%BE%97%20%E7%A8%85%20%E9%96%8B%20%E6%94%AF) Income tax expense significantly increased from approximately RMB 1.7 million to RMB 30.8 million, primarily due to an increase in deferred income tax and higher land appreciation tax provisions from increased property sales | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 30.8 | 1.7 | +1711.8% | - The increase was primarily due to an increase in deferred income tax of approximately **RMB 24.2 million** and an increase in land appreciation tax provisions of approximately **RMB 4.6 million** due to increased property sales[57](index=57&type=chunk) [Net Loss and Net Loss Margin](index=20&type=section&id=%E6%B7%A8%20%E8%99%A7%20%E6%90%8D%20%E5%8F%8A%20%E6%B7%A8%20%E8%99%A7%20%E6%90%8D%20%E7%8E%87) Net loss increased from approximately RMB 228.1 million to RMB 240.9 million, primarily due to a significant decrease in gross profit margin | Metric | June 30, 2025 (Million RMB) | June 30, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Loss | 240.9 | 228.1 | +5.6% | - The increase in net loss was primarily due to a significant decrease in gross profit margin[58](index=58&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=%E6%B5%81%20%E5%8B%95%20%E8%B3%87%20%E9%87%91%20%E5%8F%8A%20%E8%B3%87%20%E6%9C%AC%20%E8%B3%87%20%E6%BA%90) The company faces liquidity pressure with cash and bank balances decreasing by 25% to RMB 27.9 million and net current liabilities increasing by 12.8% to RMB 4,421.8 million, relying on operating cash, debt financing, and shareholder contributions - The company primarily funds its growth through cash generated from operations, debt financing, and shareholder contributions[59](index=59&type=chunk) | Metric | June 30, 2025 (Million RMB) | December 31, 2024 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 27.9 | 37.2 | -25.0% | | Net Current Liabilities | 4,421.8 | 3,919.6 | +12.8% | - The increase in net current liabilities was primarily due to a decrease in properties under development of approximately **RMB 1,254.7 million**, partially offset by a net decrease in trade payables, other payables, and the current portion of interest-bearing bank borrowings[60](index=60&type=chunk) [Key Financial Ratios](index=21&type=section&id=%E4%B8%BB%20%E8%A6%81%20%E8%B2%A1%20%E5%8B%99%20%E6%AF%94%20%E7%8E%87) As of June 30, 2025, the company's gearing ratio increased to 99.0% and current ratio decreased to 0.54 times, reflecting higher financial leverage and deteriorating liquidity | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 99.0% | 93.8% | +5.6% | | Current Ratio | 0.54 times | 0.62 times | -0.08 times | - The increase in gearing ratio was primarily due to a significant increase in total deficit of approximately **79.9%** as of June 30, 2025[61](index=61&type=chunk) [Risk Management](index=21&type=section&id=%E9%A2%A8%20%E9%9A%AA%20%E7%AE%A1%20%E7%90%86) The company manages foreign exchange and interest rate risks by closely monitoring market trends and, if necessary, considering hedging significant foreign currency exposures - The company's majority of income and expenses are denominated in RMB, and it manages foreign exchange risk by closely monitoring exchange rate movements and considering hedging significant foreign currency exposures when necessary[62](index=62&type=chunk) - The company manages interest rate risk by closely monitoring interest rate fluctuation trends and their impact on interest rate exposure, as well as regulating its debt portfolio[63](index=63&type=chunk) [Pledged Assets](index=22&type=section&id=%E6%8A%B5%20%E6%8A%BC%20%E8%B3%87%20%E7%94%A2) As of June 30, 2025, approximately RMB 3,884.7 million of the company's bank and other borrowings were secured by land held for development, equity interests in subsidiaries, properties under development, investment properties, rental income rights, and completed properties held for sale - Approximately **RMB 3,884.7 million** of bank and other borrowings are pledged against various assets, including land, equity, properties under development, and investment properties[64](index=64&type=chunk) [Capital Commitments](index=22&type=section&id=%E8%B3%87%20%E6%9C%AC%20%E6%89%BF%20%E6%93%94) As of June 30, 2025, the company's contracted but unprovided capital commitments for property development expenditures totaled approximately RMB 1,548.7 million, primarily for properties under development and investment properties | Capital Commitment Item | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Properties Under Development | 1,042,297 | 1,767,317 | | Investment Properties | 289,691 | 299,899 | | Land Acquisition | 216,665 | 216,665 | | **Total** | **1,548,653** | **2,283,881** | [Financial Guarantees](index=23&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E6%93%85%20%E4%BF%9D) As of June 30, 2025, the company provided financial guarantees of approximately RMB 1,877.8 million for customers' mortgage financing, with directors believing the net realizable value of the properties is sufficient to cover outstanding mortgages | Total Financial Guarantees | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Guarantees for Mortgage Financing Granted by Certain Banks to Customers of the Group's Completed Properties Held for Sale | 1,877,832 | 1,368,544 | - The company provides guarantees for customers' mortgage financing, with the guarantee period from the grant of the mortgage loan until the issuance and registration of the property ownership certificate[68](index=68&type=chunk)[69](index=69&type=chunk) - The directors believe that even if customers default on repayments, the net realizable value of the related properties is sufficient to cover the outstanding mortgage loans, thus no financial liability provision has been made for these guarantees[69](index=69&type=chunk) [Significant Acquisitions and Disposals](index=24&type=section&id=%E9%99%84%20%E5%B1%AC%20%E5%85%AC%20%E5%8F%B8%E3%80%81%E8%81%AF%20%E7%87%9F%20%E4%BC%81%20%E6%A5%AD%20%E5%8F%8A%20%E5%90%88%20%E8%B3%87%20%E4%BC%81%20%E6%A5%AD%20%E7%9A%84%20%E9%87%8D%20%E5%A4%A7%20%E6%94%B6%20%E8%B3%BC%20%E5%8F%8A%20%E5%87%BA%20%E5%94%AE) For the six months ended June 30, 2025, the company did not undertake any significant acquisitions or disposals of its subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the company did not undertake any significant acquisitions or disposals of its subsidiaries, associates, or joint ventures[70](index=70&type=chunk) [Material Investments Held](index=24&type=section&id=%E6%8C%81%20%E6%9C%89%20%E9%87%8D%20%E5%A4%A7%20%E6%8A%95%20%E8%B3%87) For the six months ended June 30, 2025, the company did not hold any material investments - For the six months ended June 30, 2025, the company did not hold any material investments[71](index=71&type=chunk) [Employees and Remuneration Policy](index=24&type=section&id=%E5%83%B1%20%E5%93%A1%20%E5%8F%8A%20%E8%96%AA%20%E9%85%AC%20%E6%94%BF%20%E7%AD%96) As of June 30, 2025, the company's employee count decreased to 116, with total employee salary and benefit expenses decreasing by 38.5% to RMB 13.4 million, maintaining a competitive remuneration system based on qualifications and performance | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 116 employees | 169 employees | -31.4% | | Total Employee Salary and Benefit Expenses (Million RMB) | 13.4 | 21.8 | -38.5% | - The company's remuneration system is based on employee qualifications, experience, position, and seniority, offering basic salaries, allowances, discretionary bonuses, performance-based pay, and year-end dividends[72](index=72&type=chunk) - The company has a share option scheme to incentivize employees and contributes to social insurance and housing provident funds for its employees[72](index=72&type=chunk) [Other Information](index=26&type=section&id=%E5%85%B6%20%E4%BB%96%20%E4%BF%A1%20%E6%81%AF) This section covers various corporate governance and administrative matters, including securities transactions, financial statement review, code compliance, and future outlook [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=%E8%B3%BC%20%E8%B2%B7%E3%80%81%E5%87%BA%20%E5%94%AE%20%E6%88%96%20%E8%B3%96%20%E5%9B%9E%20%E6%9C%AC%20%E5%85%AC%20%E5%8F%B8%20%E4%B8%8A%20%E5%B8%82%20%E8%AD%89%20%E5%88%B8) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[75](index=75&type=chunk) [Review of Consolidated Financial Statements](index=26&type=section&id=%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E8%A1%A8%20%E4%B9%8B%20%E5%AF%A9%20%E9%96%B1) The Audit Committee reviewed the unaudited consolidated interim results for the period ended June 30, 2025, without disagreement, discussing accounting principles, internal controls, risk management, and financial reporting - The Audit Committee has reviewed the Group's unaudited consolidated interim results for the period ended June 30, 2025, with no disagreements[76](index=76&type=chunk) - The Audit Committee discussed accounting principles and policies, auditing, internal controls, risk management, and financial reporting matters[76](index=76&type=chunk) [Compliance with the Corporate Governance Code](index=27&type=section&id=%E9%81%B5%20%E5%AE%88%E3%80%8A%E4%BC%81%20%E6%A5%AD%20%E7%AE%A1%20%E6%B2%BB%20%E5%AE%88%20%E5%89%87%E3%80%8B) The Board confirms that the company has complied with all principles and code provisions of the Corporate Governance Code as set out in Appendix C1 of the HKEX Listing Rules for the six months ended June 30, 2025 - The company has complied with all principles and code provisions of the Corporate Governance Code as set out in Appendix C1 of the HKEX Listing Rules during the period[77](index=77&type=chunk) [Interim Dividend](index=27&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E8%82%A1%20%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[78](index=78&type=chunk) [No Material Changes](index=27&type=section&id=%E7%84%A1%20%E9%87%8D%20%E5%A4%A7%20%E8%AE%8A%20%E5%8B%95) Except as disclosed in this announcement, there have been no material changes in the company's business development, future prospects, or financial position, nor any significant events affecting the group since the publication of the 2024 annual report - Except as disclosed in this announcement, there have been no material changes in the company's business development, future prospects, or financial position, nor any significant events affecting the Group since the publication of the 2024 annual report[79](index=79&type=chunk) [Future Outlook](index=27&type=section&id=%E6%9C%AA%20%E4%BE%86%20%E5%B1%95%20%E6%9C%9B) The company anticipates continued demand and financing pressure in the real estate sector but expects further stimulus policies, focusing on project completion, accelerated sales, operational optimization, cost reduction, and active negotiations with lenders and creditors, having resumed trading on July 14, 2025 - The real estate industry is expected to continue facing demand and financing pressure in the coming year, but stimulus policies are anticipated to be introduced, potentially restoring consumer confidence and market sentiment[80](index=80&type=chunk) - The company will continue to focus on completing and delivering property projects, accelerating sales of properties under development and completed properties, integrating resources to optimize operations, and reducing expenses and capital expenditures[80](index=80&type=chunk) - The company is actively negotiating with lenders and creditors to find solutions as soon as possible[81](index=81&type=chunk) - The company resumed trading on July 14, 2025[81](index=81&type=chunk) [Standard Code for Securities Transactions by Directors](index=28&type=section&id=%E8%91%A3%20%E4%BA%8B%20%E9%80%B2%20%E8%A1%8C%20%E8%AD%89%20%E5%88%B8%20%E4%BA%A4%20%E6%98%93%20%E4%B9%8B%20%E6%A8%99%20%E6%BA%96%20%E5%AE%88%20%E5%89%87) The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the HKEX Listing Rules, and all directors confirmed compliance for the six months ended June 30, 2025 - The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the HKEX Listing Rules, and all directors have confirmed compliance[82](index=82&type=chunk) [Publication of Interim Results and Despatch of Interim Report](index=28&type=section&id=%E5%88%8A%20%E7%99%BC%20%E4%B8%AD%20%E6%9C%9F%20%E6%A5%AD%20%E7%B8%BE%20%E5%8F%8A%20%E5%AF%84%20%E7%99%BC%20%E4%B8%AD%20%E6%9C%9F%20%E5%A0%B1%20%E5%91%8A) This preliminary announcement has been published on the HKEX and company websites, with the full interim report containing all required information to be published in due course - This preliminary announcement has been published on the HKEX website and the company's website[83](index=83&type=chunk) - The interim report, containing all information required by the Listing Rules, will be published in due course[83](index=83&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported a **3.0%** revenue increase and a **1,511.2%** surge in profit attributable to owners, with net assets growing by **3.1%** Financial Highlights for the Six Months Ended June 30, 2025 | Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 230,961 | 224,135 | +3.0% | | Gross Profit | 176,558 | 169,112 | +4.4% | | Operating Gross Profit | 56,330 | 49,736 | +13.3% | | EBITDA | 49,914 | 44,884 | +11.2% | | Profit Attributable to Owners of the Company | 8,636 | 536 | +1,511.2% | | Net Ordinary Operating Profit | 12,156 | 536 | +2,167.9% | | Basic Earnings Per Share (HK cents) | 1.24 | 0.08 | +1,450.0% | Balance Sheet Summary (As at Period End) | Item | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 947,994 | 958,622 | –1.1% | | Net Assets | 360,695 | 349,892 | +3.1% | | Net Assets Per Share (HK$) | 0.520 | 0.504 | +3.1% | | Gearing Ratio | 154.3% | 164.6% | –10.3% | | Total Assets/Total Liabilities Ratio | 1.61 | 1.57 | +2.5% | [Interim Results](index=2&type=section&id=Interim%20Results) This section presents the condensed consolidated financial statements, including the statement of comprehensive income and statement of financial position [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Revenue grew by **3.0%** to **HK$230,961 thousand**, and profit attributable to owners surged by **1,511.2%** to **HK$8,636 thousand**, primarily due to lower finance costs Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Revenue | 230,961 | 224,135 | | Cost of Sales | (54,403) | (55,023) | | Gross Profit | 176,558 | 169,112 | | Direct Operating Expenses | (120,228) | (119,376) | | Operating Gross Profit | 56,330 | 49,736 | | Other Income | 2,915 | 3,408 | | Other Gains and Losses | (3,015) | (3,869) | | Administrative Expenses | (35,715) | (35,367) | | Finance Costs | (8,780) | (11,265) | | Profit Before Income Tax | 11,735 | 2,643 | | Income Tax Expense | (654) | (258) | | Profit for the Period | 11,081 | 2,385 | | Total Comprehensive Income for the Period | 10,803 | 2,639 | | Profit Attributable to Owners of the Company | 8,636 | 536 | | Profit Attributable to Non-controlling Interests | 2,445 | 1,849 | | Basic Earnings Per Share (HK cents) | 1.24 | 0.08 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly decreased by **1.1%**, while net assets increased by **3.1%**, and net current liabilities improved significantly Condensed Consolidated Statement of Financial Position (As at Period End) | Item | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 159,311 | 157,972 | | Right-of-use Assets | 83,697 | 77,721 | | Investment Properties | 550,000 | 546,000 | | Goodwill | 48,000 | 48,000 | | Other Intangible Assets | 15,405 | 15,111 | | Prepayments and Deposits | 10,428 | 13,185 | | **Total Non-current Assets** | **866,841** | **857,989** | | **Current Assets** | | | | Inventories | 21,779 | 24,916 | | Trade and Other Receivables | 34,453 | 31,726 | | Financial Assets at Fair Value Through Profit or Loss | 6 | 7 | | Restricted Bank Deposits | 2,744 | 2,744 | | Cash and Cash Equivalents | 32,799 | 30,612 | | **Total Current Assets** | **91,781** | **90,005** | | **Total Assets** | **958,622** | **947,994** | | **Current Liabilities** | | | | Trade and Other Payables | 76,239 | 68,072 | | Amounts Due to Related Parties | 69,023 | 81,090 | | Lease Liabilities | 35,642 | 34,901 | | Current Tax Liabilities | 4,580 | 5,659 | | Interest-bearing Borrowings | 150,172 | 45,622 | | Non-interest-bearing Borrowings | 1,388 | 1,388 | | **Total Current Liabilities** | **337,044** | **236,732** | | **Net Current Liabilities** | **(245,263)** | **(146,727)** | | **Non-current Liabilities** | | | | Lease Liabilities | 52,848 | 48,476 | | Interest-bearing Borrowings | 179,068 | 262,801 | | Deferred Tax Liabilities | 34,341 | 33,861 | | Non-interest-bearing Borrowings | 5,429 | 5,429 | | **Total Non-current Liabilities** | **271,686** | **350,567** | | **Total Liabilities** | **608,730** | **587,299** | | **Net Assets** | **349,892** | **360,695** | | **Total Equity** | **349,892** | **360,695** | [Notes to the Condensed Consolidated Interim Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures regarding the accounting policies, judgments, and specific financial statement line items [1. General Information](index=5&type=section&id=1.%20General%20Information) Future Bright Group Limited is a Bermuda-incorporated listed company primarily engaged in food and catering sales, food souvenir sales, and property investment - The company is a Bermuda-incorporated listed company with shares listed on the Hong Kong Stock Exchange[6](index=6&type=chunk) - The Group is principally engaged in food and catering sales, food souvenir sales, and property investment businesses[6](index=6&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The interim financial statements are prepared under HKAS 34 and Listing Rules, applying consistent accounting policies, with the Board affirming going concern despite net current liabilities - The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) - The Group recorded a profit of approximately **HK$11,081,000** for the reporting period, but current liabilities exceeded current assets by approximately **HK$146,727,000**[9](index=9&type=chunk) - The Board has considered several measures, including unutilized bank and credit facilities (approximately **HK$22,700,000**), related parties' commitment not to demand immediate settlement of outstanding amounts (approximately **HK$81,100,000**), and the realization of investment properties and land and buildings if necessary to repay loans and strengthen liquidity, concluding that the Group can continue as a going concern[9](index=9&type=chunk)[10](index=10&type=chunk) [3. Adoption of Hong Kong Financial Reporting Standards](index=6&type=section&id=3.%20Adoption%20of%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group has adopted amendments to HKFRSs effective for the current accounting period, which have no significant impact on the condensed consolidated interim financial statements - The Hong Kong Institute of Certified Public Accountants has issued amendments to HKFRSs effective for the Group's current accounting period, including HKAS 21 (Amendment) "Lack of Exchangeability"[12](index=12&type=chunk) - These amendments have no significant impact on the Group's condensed consolidated interim financial statements[12](index=12&type=chunk) [4. Use of Judgments and Estimates](index=6&type=section&id=4.%20Use%20of%20Judgments%20and%20Estimates) The significant judgments and key sources of estimation uncertainty made by management in preparing the condensed consolidated interim financial statements are consistent with those applied in the 2024 annual financial statements - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the 2024 annual financial statements[14](index=14&type=chunk) [5. Segment Reporting](index=6&type=section&id=5.%20Segment%20Reporting) The Group operates three segments: food and catering, food souvenirs, and property investment, with food and catering as the main revenue source and Macau as the primary geographical contributor [5.(a) Business Segments](index=6&type=section&id=5.(a)%20Business%20Segments) - The Group has three reportable segments: food and catering (sales in Macau and Hong Kong), food souvenirs (sales of food souvenirs, including festive food), and property investment (leasing of properties)[15](index=15&type=chunk) Reportable Segment Revenue and Results (For the Six Months Ended June 30) | Segment | 2025 Revenue (HK$ thousands) | 2024 Revenue (HK$ thousands) | 2025 Results (HK$ thousands) | 2024 Results (HK$ thousands) | | :--- | :--- | :--- | :--- | :--- | | Food and Catering | 174,483 | 175,055 | 6,958 | (3,643) | | Food Souvenirs | 46,433 | 39,035 | 8,011 | 4,960 | | Property Investment | 10,045 | 10,045 | 1,033 | 4,058 | | **Consolidated** | **230,961** | **224,135** | **16,002** | **5,375** | Reportable Segment Assets and Liabilities (As at Period End) | Segment | June 30, 2025 Assets (HK$ thousands) | December 31, 2024 Assets (HK$ thousands) | June 30, 2025 Liabilities (HK$ thousands) | December 31, 2024 Liabilities (HK$ thousands) | | :--- | :--- | :--- | :--- | :--- | | Food and Catering | 321,326 | 323,283 | 299,359 | 297,025 | | Food Souvenirs | 63,200 | 66,211 | 32,885 | 40,579 | | Property Investment | 563,014 | 568,467 | 253,660 | 268,908 | | **Consolidated** | **947,540** | **957,961** | **585,904** | **606,512** | [5.(b) Reconciliation of Reportable Segment Revenue, Profit or Loss, Assets and Liabilities](index=11&type=section&id=5.(b)%20Reconciliation%20of%20Reportable%20Segment%20Revenue%2C%20Profit%20or%20Loss%2C%20Assets%20and%20Liabilities) Reconciliation of Consolidated Revenue (For the Six Months Ended June 30) | Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Reportable segment revenue | 233,876 | 227,543 | | Less: Other income | (2,915) | (3,408) | | **Consolidated revenue** | **230,961** | **224,135** | Reconciliation of Consolidated Profit Before Income Tax (For the Six Months Ended June 30) | Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Reportable segment profit | 16,002 | 5,375 | | Other income and other gains and losses | 2 | – | | Corporate staff costs | (2,970) | (1,970) | | Unallocated expenses | (1,299) | (762) | | **Consolidated profit before income tax** | **11,735** | **2,643** | Reconciliation of Total Consolidated Assets and Liabilities (As at Period End) | Item | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Reportable segment assets | 947,540 | 957,961 | | Financial assets at fair value through profit or loss | 7 | 6 | | Unallocated corporate assets | 447 | 655 | | **Total consolidated assets** | **947,994** | **958,622** | | Reportable segment liabilities | 585,904 | 606,512 | | Unallocated corporate liabilities | 1,395 | 2,218 | | **Total consolidated liabilities** | **587,299** | **608,730** | [5.(c) Geographical Information](index=12&type=section&id=5.(c)%20Geographical%20Information) Revenue from External Customers (By Geographical Location) | Region | For the Six Months Ended June 30, 2025 (HK$ thousands) | For the Six Months Ended June 30, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Macau | 176,405 | 169,279 | | Hong Kong | 54,556 | 54,856 | | **Total** | **230,961** | **224,135** | Non-current Assets (Excluding Financial Assets, By Geographical Location) | Region | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Macau | 830,475 | 843,359 | | Hong Kong | 14,329 | 13,054 | | **Total** | **844,804** | **856,413** | [6. Revenue](index=12&type=section&id=6.%20Revenue) The Group's revenue primarily derives from food and catering sales, food souvenir sales, and investment property rental income, with customer contract revenue recognized at a point in time Revenue by Major Categories (For the Six Months Ended June 30) | Source of Revenue | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Sales of food and catering | 174,483 | 175,055 | | Sales of food souvenirs | 46,433 | 39,035 | | **Total revenue from contracts with customers** | **220,916** | **214,090** | | Rental income from investment properties | 10,045 | 10,045 | | **Total revenue** | **230,961** | **224,135** | - In accordance with HKFRS 15, revenue from contracts with customers is recognized at a point in time[31](index=31&type=chunk) [7. Profit Before Income Tax](index=13&type=section&id=7.%20Profit%20Before%20Income%20Tax) Profit before income tax is influenced by various expenses and income, including cost of inventories, staff costs, depreciation, amortization, and fair value loss on investment properties Profit Before Income Tax is Stated After Charging/(Crediting) (For the Six Months Ended June 30) | Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 53,731 | 54,393 | | Direct operating expenses from investment properties recognized in the period | 672 | 630 | | Cost of sales | 54,403 | 55,023 | | Staff costs | 73,024 | 71,103 | | Depreciation of property, plant and equipment | 9,247 | 9,751 | | Depreciation of right-of-use assets | 19,858 | 20,987 | | Contingent rental expenses | 17,147 | 14,257 | | Amortization of other intangible assets | 294 | 238 | | Auditors' remuneration | 190 | – | | Interest income | (14) | (209) | | Fair value loss on investment properties | 4,000 | – | | Loss on write-off of property, plant and equipment | – | 2,212 | [8. Finance Costs](index=13&type=section&id=8.%20Finance%20Costs) The Group's finance costs primarily comprise interest on interest-bearing borrowings and estimated interest expense on lease liabilities, with a decrease in the current period compared to the prior period Finance Costs (For the Six Months Ended June 30) | Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Interest on interest-bearing borrowings repayable within five years | 5,992 | 7,965 | | Estimated interest expense on lease liabilities | 2,788 | 3,300 | | **Total** | **8,780** | **11,265** | [9. Income Tax Expense](index=14&type=section&id=9.%20Income%20Tax%20Expense) Income tax expense includes Macau Complementary Tax, Hong Kong Profits Tax, and deferred tax credit, with Hong Kong Profits Tax applying a two-tiered tax rate system Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Current tax: Macau Complementary Tax | 191 | 258 | | Current tax: Hong Kong Profits Tax | 943 | – | | Deferred tax: Credit for the period | (480) | – | | **Income tax expense** | **654** | **258** | - Macau Complementary Tax is calculated at progressive rates, with a maximum rate of **12%**[34](index=34&type=chunk) - Hong Kong Profits Tax is provided at a rate of **16.5%**, with qualifying entities subject to an **8.25%** tax rate on the first **HK$2,000,000** of assessable profits under the two-tiered tax rate regime[35](index=35&type=chunk) [10. Dividends](index=15&type=section&id=10.%20Dividends) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 and 2024 - The Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 and 2024[36](index=36&type=chunk) [11. Earnings Per Share](index=15&type=section&id=11.%20Earnings%20Per%20Share) Basic earnings per share significantly increased to **1.24 HK cents** from **0.08 HK cents**, with diluted earnings per share being identical due to no potential dilutive ordinary shares Basic Earnings Per Share (For the Six Months Ended June 30) | Item | 2025 (HK$ thousands/Number of shares) | 2024 (HK$ thousands/Number of shares) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 8,636 | 536 | | Weighted average number of ordinary shares for the purpose of basic earnings per share | 694,302,420 | 694,302,420 | | **Basic earnings per share (HK cents)** | **1.24** | **0.08** | - As there were no potential dilutive ordinary shares in issue for the six months ended June 30, 2025 and 2024, the amount of diluted earnings per share is the same as basic earnings per share[38](index=38&type=chunk) [12. Deposits, Trade and Other Receivables](index=16&type=section&id=12.%20Deposits%2C%20Trade%20and%20Other%20Receivables) Trade receivables, mainly operator-collected revenue with a 30-day credit period, totaled **HK$20,814 thousand** as of June 30, 2025, with most due within 90 days - Trade receivables primarily represent revenue collected by operators on behalf of the Group at the locations of the Group's restaurants, with a credit period of **30 days** from the date of sale[39](index=39&type=chunk) Deposits, Trade and Other Receivables (As at Period End) | Item | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | **Current portion** | | | | Trade receivables | 20,814 | 24,055 | | Prepayments and deposits | 7,478 | 6,744 | | Other receivables | 3,434 | 3,654 | | **Total** | **31,726** | **34,453** | | **Non-current portion** | | | | Prepayments and deposits | 13,185 | 10,428 | Ageing Analysis of Trade Receivables (As at Period End) | Ageing | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | 0 to 90 days | 20,801 | 24,037 | | 91 to 365 days | 13 | 18 | | **Total** | **20,814** | **24,055** | [13. Trade and Other Payables](index=17&type=section&id=13.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased to **HK$68,072 thousand**, with most trade payables due within 90 days Trade and Other Payables (As at Period End) | Item | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Trade payables | 25,244 | 29,022 | | Accruals and provisions | 31,227 | 38,212 | | Construction payables and other payables | 11,601 | 9,005 | | **Total** | **68,072** | **76,239** | Ageing Analysis of Trade Payables (As at Period End) | Ageing | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Within 90 days | 22,914 | 24,124 | | 91 to 180 days | 695 | 3,340 | | 181 to 365 days | 1,268 | 1,051 | | Over 365 days | 367 | 507 | | **Total** | **25,244** | **29,022** | [14. Events After the Reporting Period](index=17&type=section&id=14.%20Events%20After%20the%20Reporting%20Period) There were no significant events after the six months ended June 30, 2025 - There were no significant events after the six months ended June 30, 2025[44](index=44&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operational performance, financial position, and future outlook, highlighting key business segment results and financial management strategies [Interim Dividend](index=18&type=section&id=Interim%20Dividend) The Group does not recommend an interim dividend for the current period, consistent with no dividends declared or paid in the past two interim periods - The Group does not recommend an interim dividend for the current period (six months ended June 30, 2024: nil)[45](index=45&type=chunk) - No dividends were declared or paid during the past two interim periods[46](index=46&type=chunk) [Operations Review](index=18&type=section&id=Operations%20Review) Food and catering remains the primary revenue source despite a slight decline, while food souvenirs achieved significant growth, and property investment maintained stable rental income [Food and Catering Business](index=18&type=section&id=Food%20and%20Catering%20Business) Food and Catering Business Operating Financial Data (For the Six Months Ended June 30) | Item | 2025 (HK$ millions) | 2024 (HK$ millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 174.5 | 175.1 | –0.3% | | Cost of Sales | (43.5) | (44.3) | –1.8% | | Gross Profit | 131.0 | 130.8 | +0.2% | | Direct Operating Expenses | (95.3) | (98.5) | –3.2% | | Operating Gross Profit | 35.7 | 32.3 | +10.5% | | Operating Gross Profit Margin (%) | 20.4% | 18.5% | +1.9% | | Profit/(Loss) Attributable to Owners of the Company | 5.8 | (4.2) | N/A | - The food and catering business contributed approximately **HK$174,500,000** in revenue, accounting for about **75.5%** of the Group's total revenue, with the decrease primarily due to reduced revenue from Japanese and Chinese restaurants[48](index=48&type=chunk) - As of June 30, 2025, the Group operated **24 restaurants** (2024: 28), with a total area of **28,971 square feet** (2024: 34,656 square feet)[49](index=49&type=chunk) - Industrial catering business revenue decreased by approximately **3.3%** to **HK$8,900,000**, mainly due to reduced lunchbox services provided to schools[55](index=55&type=chunk) - Food wholesale business revenue increased by approximately **17.8%** to **HK$5,300,000**, primarily due to an overall increase in sales to customers[56](index=56&type=chunk) [Food Souvenir Business](index=21&type=section&id=Food%20Souvenir%20Business) Food Souvenir Business Operating Financial Data (For the Six Months Ended June 30) | Item | 2025 (HK$ millions) | 2024 (HK$ millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 46.4 | 39.0 | +19.0% | | Cost of Sales | (10.3) | (10.1) | +2.0% | | Gross Profit | 36.1 | 28.9 | +24.9% | | Direct Operating Expenses | (24.9) | (20.9) | +19.1% | | Operating Gross Profit | 11.2 | 8.0 | +40.0% | | Operating Gross Profit Margin (%) | 24.1% | 20.5% | +3.6% | | Profit Attributable to Owners of the Company | 5.6 | 3.4 | +64.7% | - Food souvenir business revenue increased by approximately **19.0%** to **HK$46,400,000**, representing about **20.1%** of the Group's total revenue, driven by increased retail sales, a rise in total visitor arrivals in Macau, and growth in corporate business[57](index=57&type=chunk) - As of June 30, 2025, the Group operated **7 Yeng Kee Bakery shops/kiosks** in Macau, with a total area of **5,501 square feet**[58](index=58&type=chunk) [Property Investment Business](index=22&type=section&id=Property%20Investment%20Business) - The property investment business recorded stable rental income of approximately **HK$10,000,000**, but profit attributable to owners was approximately **HK$1,400,000**, a decrease from **HK$4,000,000** in the prior period[59](index=59&type=chunk) - The principal investment properties were valued at **HK$546,000,000**, with a fair value loss of approximately **HK$4,000,000** recognized during the period[59](index=59&type=chunk) [Logistics Support](index=22&type=section&id=Logistics%20Support) - The Group operates a central food and logistics processing center in Macau and a central kitchen in Hong Kong to enhance operational efficiency[61](index=61&type=chunk) - The Group will continue to actively strengthen its logistics support for food procurement and processing facilities[61](index=61&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=Liquidity%20and%20Financial%20Resources) Net current liabilities improved to **HK$146,700,000**, and the gearing ratio decreased to **154.3%**, indicating an improved financial position - As of June 30, 2025, the Group's net current liabilities were approximately **HK$146,700,000** (December 31, 2024: HK$245,300,000)[62](index=62&type=chunk) - The Group had interest-bearing bank borrowings of approximately **HK$308,400,000** and refinanced two outstanding bank loans totaling approximately **HK$99,500,000**[63](index=63&type=chunk) Gearing Ratio (As at Period End) | Item | June 30, 2025 (%) | December 31, 2024 (%) | Change (%) | | :--- | :--- | :--- | :--- | | Gearing Ratio | 154.3 | 164.6 | –10.3% | - The decrease in the gearing ratio was primarily due to an increase in the Group's total equity[64](index=64&type=chunk) [Material Litigation](index=23&type=section&id=Material%20Litigation) As of June 30, 2025, the Group was not involved in any material litigation or arbitration - As of June 30, 2025, the Group was not involved in any material litigation or arbitration[65](index=65&type=chunk) [Contingent Liabilities](index=23&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[66](index=66&type=chunk) [Currency Risk](index=23&type=section&id=Currency%20Risk) As of June 30, 2025, the Group had no outstanding hedging instruments and will continue to closely monitor foreign currency risk, implementing hedging arrangements when necessary - As of June 30, 2025, the Group had no outstanding hedging instruments[67](index=67&type=chunk) - The Group will continue to closely monitor its foreign currency risk and needs, making hedging arrangements when necessary[67](index=67&type=chunk) [Employees](index=23&type=section&id=Employees) As of June 30, 2025, the Group employed **651 full-time staff**, primarily in Macau and Hong Kong, with remuneration reviewed regularly and determined based on performance - As of June 30, 2025, the Group employed a total of **651 full-time staff** (June 30, 2024: 620)[68](index=68&type=chunk) - Employees are primarily located in Macau (**547**), Hong Kong (**97**), and Mainland China (**7**)[68](index=68&type=chunk) - Remuneration packages are reviewed with reference to market terms, individual qualifications, experience, duties, and responsibilities, with policies set by the Remuneration Committee and specific remuneration determined by management based on performance[68](index=68&type=chunk) [Events After Balance Sheet Date](index=24&type=section&id=Events%20After%20Balance%20Sheet%20Date) There were no significant events after the balance sheet date of June 30, 2025 - There were no significant events after June 30, 2025[69](index=69&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[70](index=70&type=chunk) [Sufficiency of Public Float](index=24&type=section&id=Sufficiency%20of%20Public%20Float) For the six months ended June 30, 2025, the Company consistently maintained a sufficient public float - For the six months ended June 30, 2025, the Company consistently maintained a sufficient public float[71](index=71&type=chunk) [Audit Committee](index=24&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the Group's condensed consolidated interim financial statements and interim results announcement for the period - The Company's Audit Committee comprises three independent non-executive directors: Mr. Wong Ho Piu (Chairman), Mr. Chik Kwong Fung, and Mr. Yu Kam Yuen[72](index=72&type=chunk) - The Audit Committee has reviewed the Group's condensed consolidated interim financial statements and interim results announcement for the period[72](index=72&type=chunk) [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, with all Directors confirming adherence to the Model Code - The Company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the period[73](index=73&type=chunk) - All Directors confirmed their compliance with the Model Code and the standards set out in the Company's code of conduct for securities transactions by Directors[73](index=73&type=chunk) [Outlook](index=25&type=section&id=Outlook) The Group benefits from tourism recovery but faces challenges like economic slowdown, declining consumer spending, and high operating costs, requiring cautious expansion and strategic adjustments - The Group's businesses benefit from increased visitor arrivals and tourism recovery in Macau and Hong Kong, but still face challenges such as economic slowdown, declining consumer spending power, changing preferences, intensified competition, and high operating costs[74](index=74&type=chunk) - Management maintains a cautious approach to business expansion, will closely monitor market conditions, adjust business strategies, and enhance operational efficiency to provide higher quality food and services and improve brand competitiveness[74](index=74&type=chunk) [Publication of Results Announcement and Interim Report](index=25&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the HKEX and Company websites, and the interim report will be dispatched to shareholders and published on these websites in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.fb.com.hk)[75](index=75&type=chunk) - The Company's 2025 interim report will be dispatched to the Company's shareholders and published on the aforementioned websites in due course[75](index=75&type=chunk) [Definitions](index=25&type=section&id=Definitions) This section provides key terms and their definitions used in this announcement to ensure a clear understanding of the report content - This section provides key terms and their definitions used in this announcement to ensure a clear understanding of the report content[76](index=76&type=chunk)[77](index=77&type=chunk) [Board of Directors](index=27&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors includes the Managing Director, Chairman, an Executive Director, and three Independent Non-executive Directors - As of the date of this announcement, the Company's Board of Directors comprises Managing Director Mr. Chan Chak Mo, Chairman and Executive Director Mr. Chan Sze Kit, Executive Director Ms. Leong Yin Ian, and Independent Non-executive Directors Mr. Yu Kam Yuen, Mr. Chik Kwong Fung, and Mr. Wong Ho Piu[78](index=78&type=chunk)

Company Information and Report Declaration [Report Cover and Disclaimer](index=1&type=section&id=Report%20Cover%20and%20Disclaimer) This report is the interim results announcement of Yongfeng Group Holdings Limited for the six months ended June 30, 2025, with disclaimers from HKEX and SEHK - Yongfeng Group Holdings Limited (Stock Code: 1549) released its interim results announcement for the six months ended June 30, 2025[2](index=2&type=chunk) - The Stock Exchange of Hong Kong Limited and Hong Kong Exchanges and Clearing Limited are not responsible for the content of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement[1](index=1&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue grew significantly by 20.0% to HK$214,523 thousand, achieving a profit for the period of HK$7,677 thousand, reversing the loss from the prior year | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 214,523 | 178,749 | 35,774 | +20.0% | | Cost of services | (179,409) | (146,058) | (33,351) | +22.8% | | Gross profit | 35,114 | 32,691 | 2,423 | +7.4% | | Other income, net | 8,191 | 6,750 | 1,441 | +21.3% | | Administrative and other operating expenses | (33,627) | (39,477) | 5,850 | -14.8% | | Finance costs | (868) | (1,269) | 401 | -31.6% | | Profit (Loss) before tax | 8,810 | (1,305) | 10,115 | N/A | | Income tax expense | (1,133) | (7,920) | 6,787 | -85.7% | | Profit (Loss) for the period | 7,677 | (9,225) | 16,902 | N/A | | Basic earnings (loss) per share | 0.50 HK cents | (0.60) HK cents | N/A | N/A | [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's total comprehensive income for the period was HK$7,418 thousand, a significant improvement compared to the total comprehensive expense of HK$9,723 thousand in the prior year | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Profit (Loss) for the period | 7,677 | (9,225) | 16,902 | | Exchange differences arising from translation | (259) | (498) | 239 | | Total comprehensive income (expense) for the period | 7,418 | (9,723) | 17,141 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly decreased, but net current assets significantly increased by 22.9% to HK$61,201 thousand, and total equity grew steadily by 3.6% to HK$212,430 thousand, indicating a robust financial position | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 153,200 | 157,069 | (3,869) | -2.5% | | Current assets | 201,723 | 199,194 | 2,529 | +1.3% | | Current liabilities | 140,522 | 149,381 | (8,859) | -5.9% | | Net current assets | 61,201 | 49,813 | 11,388 | +22.9% | | Net assets | 212,430 | 205,012 | 7,418 | +3.6% | | Total equity | 212,430 | 205,012 | 7,418 | +3.6% | Notes to the Condensed Consolidated Financial Statements [General Information and Basis of Preparation](index=4&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) Yongfeng Group Holdings Limited, incorporated in the Cayman Islands, primarily engages in investment holding, with subsidiaries providing marine freight and freight forwarding services in Hong Kong and China - The Company is incorporated in the Cayman Islands, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 6, 2016[7](index=7&type=chunk) - The principal activities of the Group are the provision of marine freight and freight forwarding services in Hong Kong and the PRC[8](index=8&type=chunk) - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules of the Stock Exchange, presented in Hong Kong dollars[8](index=8&type=chunk)[9](index=9&type=chunk) [Adoption of Revised Hong Kong Financial Reporting Standards](index=5&type=section&id=Adoption%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The accounting policies applied in preparing these unaudited condensed consolidated financial statements are consistent with the 2024 financial statements, adopting only relevant revised HKFRSs effective for the current period - Accounting policies are consistent with the 2024 financial statements, adopting only relevant revised Hong Kong Financial Reporting Standards effective for the current period[10](index=10&type=chunk) - The Group has not early adopted any revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective for the financial period beginning on January 1, 2025[10](index=10&type=chunk) [Segment Information](index=5&type=section&id=Segment%20Information) The Group's operating segments are assessed by executive directors based on internal reporting, primarily comprising marine freight forwarding services and feeder vessel, carrier-owned container, and barge services by route - Executive directors are identified as the chief operating decision-makers, reviewing internal reports to assess performance and allocate resources[11](index=11&type=chunk) - Segment results refer to the gross profit earned or loss incurred by each segment, excluding other income, administrative and other operating expenses, finance costs, and income tax expense[11](index=11&type=chunk) [Business Segment Results](index=6&type=section&id=Business%20Segment%20Results) For the six months ended June 30, 2025, marine freight forwarding services and all routes (Fujian, Guangxi, Guangdong, Hainan) recorded revenue and segment results, with marine freight forwarding and Hainan routes showing strong performance | Segment | 2025 Revenue (HK$ thousand) | 2025 Segment Results (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2024 Segment Results (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Marine freight forwarding services | 44,480 | 8,933 | 31,082 | 4,714 | | Fujian route | 42,723 | 6,868 | 30,718 | 6,548 | | Guangxi route | 61,254 | 5,891 | 51,759 | 8,096 | | Guangdong route | 22,350 | 5,099 | 21,764 | 6,707 | | Hainan route | 43,716 | 8,323 | 43,426 | 6,626 | | **Total** | **214,523** | **35,114** | **178,749** | **32,691** | [Geographical Information](index=7&type=section&id=Geographical%20Information) As of June 30, 2025, the Group's designated non-current assets were primarily located in Hong Kong and China, totaling HK$153,200 thousand, a slight decrease from the end of 2024 | Region | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 120,588 | 123,339 | | China | 32,612 | 33,730 | | **Total** | **153,200** | **157,069** | [Major Customers Information](index=7&type=section&id=Major%20Customers%20Information) For the six months ended June 30, 2025, one customer contributed over 10% of total revenue, amounting to approximately HK$22,511,000, whereas there were no such customers in the prior year - In the first half of 2025, one customer contributed total revenue over **10%**, amounting to approximately **HK$22,511,000**[17](index=17&type=chunk) - In the corresponding period of 2024, no customer contributed total revenue over **10%**[17](index=17&type=chunk) [Revenue](index=8&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue was HK$214,523 thousand, primarily from feeder vessel services and marine freight forwarding services, with all service types showing growth | Service Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Feeder vessel services | 145,652 | 130,852 | 14,800 | +11.3% | | Carrier-owned container services | 24,319 | 16,470 | 7,849 | +47.7% | | Marine freight forwarding services | 44,480 | 31,082 | 13,398 | +43.1% | | Barge services | 72 | 345 | (273) | -79.1% | | **Total Revenue** | **214,523** | **178,749** | **35,774** | **+20.0%** | [Other Income, Net](index=8&type=section&id=Other%20Income%2C%20Net) For the six months ended June 30, 2025, other income, net, increased to HK$8,191 thousand, mainly driven by higher government grants and gains from financial assets at fair value through profit or loss | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bank interest income | 690 | 794 | (104) | -13.1% | | Dividend income | 32 | 48 | (16) | -33.3% | | Net exchange (loss) gain | (528) | 347 | (875) | N/A | | Gain on disposal of property, plant and equipment | – | 515 | (515) | -100.0% | | Government grants | 6,217 | 4,451 | 1,766 | +39.7% | | Net gain (loss) on financial assets at fair value through profit or loss | 1,800 | (297) | 2,097 | N/A | | Rental income | 160 | 840 | (680) | -81.0% | | Miscellaneous (expenses) income | (180) | 52 | (232) | N/A | | **Total** | **8,191** | **6,750** | **1,441** | **+21.3%** | [Profit (Loss) Before Tax](index=9&type=section&id=Profit%20%28Loss%29%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was HK$8,810 thousand, a turnaround from a loss of HK$1,305 thousand in the prior year, mainly due to lower finance costs, reduced administrative expenses, and increased gains from financial assets at fair value through profit or loss | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Finance costs | 868 | 1,269 | (401) | -31.6% | | Staff costs | 22,104 | 20,802 | 1,302 | +6.3% | | Depreciation of property, plant and equipment | 4,794 | 4,726 | 68 | +1.4% | | Depreciation of investment properties | 1,294 | 1,295 | (1) | -0.1% | | Net exchange loss (gain) | 528 | (347) | 875 | N/A | | Short-term lease payments (feeder vessels and barges) | 23,676 | 19,366 | 4,310 | +22.2% | | Short-term lease payments (premises leases) | 567 | 29 | 538 | N/A | | Fines | – | 4,887 | (4,887) | -100.0% | [Taxation](index=10&type=section&id=Taxation) For the six months ended June 30, 2025, income tax expense significantly decreased by 85.7% to HK$1,133 thousand, primarily due to a large under-provision in the prior year and no corporate income tax provision for PRC entities without assessable profits | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Hong Kong Profits Tax - Current period | 1,133 | 668 | 465 | +69.6% | | Hong Kong Profits Tax - Under-provision in prior years | – | 7,252 | (7,252) | -100.0% | | **Total Income Tax Expense** | **1,133** | **7,920** | **(6,787)** | **-85.7%** | - Hong Kong incorporated subsidiaries are subject to a two-tiered profits tax rate system, with a tax rate of **8.25%** on the first **HK$2,000,000** of assessable profits and **16.5%** on the remaining assessable profits[24](index=24&type=chunk) - No provision for PRC Enterprise Income Tax was made for PRC entities as they had no assessable profits[25](index=25&type=chunk) [Dividends](index=10&type=section&id=Dividends) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, and 2024 - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, and 2024[26](index=26&type=chunk) [Earnings (Loss) Per Share](index=11&type=section&id=Earnings%20%28Loss%29%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were 0.50 HK cents, a turnaround from a loss of 0.60 HK cents per share in the prior year, with diluted earnings per share being the same due to no potential ordinary shares | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit (Loss) for the period attributable to owners of the Company (HK$ thousand) | 7,677 | (9,225) | | Weighted average number of ordinary shares (thousand shares) | 1,550,000 | 1,550,000 | | Basic earnings (loss) per share (HK cents) | 0.50 | (0.60) | | Diluted earnings (loss) per share (HK cents) | 0.50 | (0.60) | - Diluted earnings (loss) per share are the same as basic earnings (loss) per share as there are no potential dilutive ordinary shares outstanding[27](index=27&type=chunk) [Trade and Other Receivables](index=11&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased by 6.3% to HK$73,114 thousand, with net trade receivables from third parties amounting to HK$67,470 thousand after deducting loss allowance | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade receivables (from third parties) | 70,204 | 73,989 | (3,785) | -5.1% | | Less: Loss allowance | (2,734) | (2,734) | 0 | 0.0% | | **Net Trade Receivables** | **67,470** | **71,255** | **(3,785)** | **-5.3%** | | Other receivables (deposits, prepayments and others) | 5,644 | 6,805 | (1,161) | -17.1% | | **Total** | **73,114** | **78,060** | **(4,946)** | **-6.3%** | | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 36,031 | 35,310 | | 31 to 60 days | 17,679 | 23,713 | | 61 to 90 days | 10,005 | 8,079 | | Over 90 days | 3,755 | 4,153 | | **Total** | **67,470** | **71,255** | - The loss allowance mainly relates to a major customer undergoing bankruptcy and liquidation proceedings, amounting to approximately **HK$2,734,000**[29](index=29&type=chunk) - The Group generally grants credit terms of up to **90 days** to its customers[29](index=29&type=chunk) [Trade and Other Payables](index=12&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased by 7.0% to HK$92,202 thousand, with trade payables primarily from third parties, unsecured, interest-free, and with credit terms of 30 to 90 days | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade payables (due to third parties) | 62,965 | 65,999 | (3,034) | -4.6% | | Other payables (accrued expenses and other payables) | 14,469 | 18,525 | (4,056) | -21.9% | | Deposits received | 14,768 | 14,621 | 147 | +1.0% | | **Total** | **92,202** | **99,145** | **(6,943)** | **-7.0%** | | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 43,735 | 40,435 | | 31 to 60 days | 9,473 | 11,796 | | 61 to 90 days | 4,445 | 6,269 | | Over 90 days | 5,312 | 7,499 | | **Total** | **62,965** | **65,999** | - Trade payables are unsecured, interest-free, and granted credit terms of **30 to 90 days**[31](index=31&type=chunk) [Interest-Bearing Borrowings](index=13&type=section&id=Interest-Bearing%20Borrowings) As of June 30, 2025, the Group's total interest-bearing borrowings were HK$46,871 thousand, all current portions of secured bank borrowings, with effective annual interest rates ranging from 1.8% to 6.0% | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Secured bank borrowings (current portion) | 46,871 | 48,358 | (1,487) | -3.1% | - Bank borrowings of approximately **HK$5,128,000** are secured by trade receivables related to invoice discounting bank loan arrangements, bearing interest at HIBOR plus **1.7%** per annum[32](index=32&type=chunk) - Mortgage loans of approximately **HK$17,478,000** are secured by leasehold land and buildings, bearing interest at HIBOR plus **1.25%** and Hong Kong Dollar Prime Rate minus **2.7%** (whichever is lower)[32](index=32&type=chunk) - Mortgage loans of approximately **HK$24,265,000** are secured by investment properties, bearing interest at HIBOR plus **1.5%** and Hong Kong Dollar Prime Rate minus **0.75%** (whichever is lower)[33](index=33&type=chunk) - All borrowings are subject to repayment on demand at the sole discretion of the lenders, thus classified as current liabilities[33](index=33&type=chunk) - The effective annual interest rate ranged from **1.8% to 6.0%** (December 31, 2024: **6.6% to 7.4%**)[34](index=34&type=chunk) - The Group has bank facilities totaling approximately **HK$134,500,000**, with unutilised amounts of approximately **HK$87,629,000**[34](index=34&type=chunk) Management Discussion and Analysis [Financial Review](index=15&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's revenue increased by 20.0% year-on-year to HK$214,523 thousand, gross profit grew by 7.4% to HK$35,114 thousand, but gross profit margin decreased from 18.3% to 16.4% | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 214,523 | 178,749 | +20.0% | | Gross profit | 35,114 | 32,691 | +7.4% | | Gross profit margin | 16.4% | 18.3% | -1.9 percentage points | | Profit (Loss) for the period | 7,677 | (9,225) | N/A | [Business Review](index=15&type=section&id=Business%20Review) Despite a 3.2% decrease in Hong Kong port container throughput, the Group's feeder vessel, carrier-owned container, and barge services saw a 42.0% increase in shipment volume, while marine freight forwarding services significantly grew in both shipment volume and gross profit - Hong Kong port container throughput decreased by **3.2%** compared to the prior year[36](index=36&type=chunk) | Service Type | 2025 Shipment Volume (TEUs) | 2024 Shipment Volume (TEUs) | Change Rate | 2025 Gross Profit (HK$ thousand) | 2024 Gross Profit (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Feeder vessel, carrier-owned container and barge services | 248,267 | 174,891 | +42.0% | 26,181 | 27,977 | -6.4% | | Marine freight forwarding services | 7,796 | 4,253 | +83.3% | 8,933 | 4,714 | +89.5% | - The decrease in gross profit for feeder vessel, carrier-owned container, and barge services was mainly due to a decrease in the average unit price of services[36](index=36&type=chunk) - The increase in gross profit for marine freight forwarding services was mainly due to increased revenue from higher shipment volume[37](index=37&type=chunk) [Analysis of Cost of Services and Other Income](index=16&type=section&id=Analysis%20of%20Cost%20of%20Services%20and%20Other%20Income) Cost of services increased by 22.8% to HK$179,409 thousand, primarily due to higher service shipment volume, while other income, net, rose by 21.3% to HK$8,191 thousand, driven by increased government grants and gains from financial assets - Cost of services increased by **22.8%** to **HK$179,409 thousand**, mainly due to increased service shipment volume[40](index=40&type=chunk) - Other income, net, increased by **21.3%** to **HK$8,191 thousand**, primarily driven by increased government grants and gains from the disposal of financial assets[40](index=40&type=chunk) [Administrative and Other Operating Expenses](index=16&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) Administrative and other operating expenses decreased by 14.8% year-on-year to HK$33,627 thousand, mainly due to the absence of additional tax-related expenses and fines during the reporting period - Administrative and other operating expenses decreased by **14.8%** to **HK$33,627 thousand**, primarily due to the absence of additional tax-related expenses and fines during the reporting period[41](index=41&type=chunk) [Profit for the Period](index=17&type=section&id=Profit%20for%20the%20Period) For the six months ended June 30, 2025, profit attributable to owners of the Company was HK$7,677 thousand, reversing a loss of HK$9,225 thousand in the prior year, mainly due to increased service shipment volume and revenue, and no additional tax-related expenses or fines - Profit attributable to owners of the Company was **HK$7,677 thousand**, reversing a loss of **HK$9,225 thousand** in the prior year[42](index=42&type=chunk) - The turnaround was mainly due to increased service shipment volume and revenue, and the absence of additional tax-related expenses and fines during the reporting period[42](index=42&type=chunk) [Prospects](index=17&type=section&id=Prospects) The Group anticipates continued market shipment volume impact from new tariffs and geopolitical issues, with intense industry competition leading to lower average service prices and pressure on gross profit margins - New tariffs and geopolitical issues are expected to continue impacting market shipment volume, with intense industry competition leading to lower average service prices and sustained pressure on gross profit margins[43](index=43&type=chunk) - The management team will address challenges through cost savings, prudent financial management, and seeking new revenue streams[43](index=43&type=chunk) - The Group will continue to compete with high-quality services, effectively manage its fleet and containers, and implement measures to improve cost-effectiveness[43](index=43&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=17&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group primarily funds working capital through internal cash flow and bank financing, with bank balances and cash at HK$125,482 thousand and a total borrowings-to-equity ratio of 23.7% as of June 30, 2025, indicating a more robust capital structure - The Group primarily funds its working capital with internally generated cash flows and bank financing facilities[44](index=44&type=chunk) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | | Bank balances and cash | 125,482 | 114,090 | +10.0% | | Mortgage loans (repayable over 5 years) | 41,743 | 43,092 | -3.1% | | Other bank borrowings (repayable within 1 year) | 5,128 | 5,266 | -2.7% | | Effective annual interest rate | 1.8% to 6.0% | 6.6% to 7.4% | Decreased | | Gearing ratio | 23.7% | 25.1% | -1.4 percentage points | [Pledge of Group Assets](index=18&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, approximately HK$59,685 thousand in leasehold land and buildings, HK$54,882 thousand in investment properties, HK$5,128 thousand in trade receivables, and HK$877 thousand in bank deposits were pledged as security for bank financing | Pledged Asset Type | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Leasehold land and buildings | 59,685 | 61,039 | | Investment properties | 54,882 | 56,176 | | Trade receivables (related to invoice discounting bank loan arrangements) | 5,128 | 5,266 | | Bank deposits | 877 | 807 | [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 175 employees, with total staff costs of HK$22,104 thousand, and remuneration policy is based on performance, qualifications, and operating results | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | 175 | 176 | | Total staff costs (HK$ thousand) | 22,104 | 20,802 | - Remuneration policy is based on employee performance, qualifications, and the Group's operating results, including basic salaries and cash bonuses[47](index=47&type=chunk) - Directors' and senior management's remuneration is reviewed periodically, referencing comparable companies, length of service, and Group performance[48](index=48&type=chunk) Other Information [Corporate Governance Practices](index=18&type=section&id=Corporate%20Governance%20Practices) For the six months ended June 30, 2025, the Company has consistently complied with the code provisions set out in Appendix C1 to the Listing Rules on Corporate Governance Code - The Company has consistently complied with the code provisions set out in Appendix C1 to the Listing Rules on Corporate Governance Code during the reporting period[49](index=49&type=chunk) [Directors' Securities Transactions](index=19&type=section&id=Directors%27%20Securities%20Transactions) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[50](index=50&type=chunk) - All directors have confirmed compliance with the required standards set out in the Model Code throughout the reporting period[50](index=50&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[51](index=51&type=chunk) [Repurchase, Sale or Redemption of the Company's Listed Securities](index=19&type=section&id=Repurchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities[52](index=52&type=chunk) - As of June 30, 2025, the Company held no treasury shares[52](index=52&type=chunk) [Material Events After the Reporting Period](index=19&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) No material events affecting the Group have occurred from June 30, 2025, up to the date of this announcement - No material events affecting the Group have occurred from June 30, 2025, up to the date of this announcement[53](index=53&type=chunk) [Review of Interim Results](index=19&type=section&id=Review%20of%20Interim%20Results) The Audit Committee, in conjunction with company management, reviewed the Group's accounting principles and practices, and discussed financial reporting matters, including the unaudited financial statements for the six months ended June 30, 2025 - The Audit Committee, comprising four independent non-executive directors, has reviewed the Group's accounting principles and practices and discussed financial reporting matters[54](index=54&type=chunk) [Publication of Interim Results and Interim Report](index=20&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This results announcement has been published on the websites of the Stock Exchange and the Company, and the 2025 interim report will be published on these websites in due course - This results announcement has been published on the website of the Stock Exchange (www.hkexnews.hk) and the Company's website (http://www.xhsl.com.hk)[55](index=55&type=chunk) - The 2025 interim report will be published on the aforementioned websites in due course[55](index=55&type=chunk) [Board Information](index=20&type=section&id=Board%20Information) As of the announcement date, the Company's Board of Directors includes three executive directors, one non-executive director, and four independent non-executive directors - The Board of Directors comprises three executive directors, one non-executive director, and four independent non-executive directors[57](index=57&type=chunk)

Report Overview [GEM Characteristics and Disclaimer](index=1&type=section&id=GEM%20Characteristics%20and%20Disclaimer) This report presents China Netcom Entertainment Group Limited's unaudited interim results for the six months ended June 30, 2025, highlighting GEM as a platform for high-risk SMEs and including a Stock Exchange disclaimer - The GEM market serves as a listing platform for high-investment-risk SMEs, requiring investors to carefully consider potential risks[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for this announcement's content, make no accuracy or completeness claims, and disclaim any liability for loss[2](index=2&type=chunk) Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, group revenue significantly decreased by **54.0%** to **HK$2,145 thousand**, gross profit turned to a gain of **HK$852 thousand**, and loss for the period narrowed to **HK$11,139 thousand** with a basic loss per share of **0.20 HK cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,145 | 4,658 | -54.0% | | Cost of sales | (1,293) | (3,950) | -67.3% | | Gross profit/(loss) | 852 | 708 | +20.3% | | Other income and gains | 1,856 | 3,320 | -44.0% | | Administrative expenses | (13,847) | (16,363) | -15.4% | | Loss before tax | (11,139) | (13,155) | -15.4% | | Loss for the period | (11,139) | (13,155) | -15.4% | | Loss for the period attributable to owners of the parent | (8,377) | (10,140) | -17.4% | | Loss per share attributable to ordinary equity holders of the parent (HK cents) | (0.20) | (0.24) | -16.7% | - For the three months ended June 30, 2025, revenue was **HK$2,026 thousand** (2024: HK$895 thousand), and loss for the period was **HK$4,892 thousand** (2024: HK$7,500 thousand)[4](index=4&type=chunk) - Exchange differences from the translation of overseas operations turned from a loss of **HK$2,235 thousand** in the same period of 2024 to a gain of **HK$1,963 thousand** in 2025[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total group assets slightly decreased, with trade receivables significantly reduced, net current assets declined from **HK$23,912 thousand** to **HK$15,773 thousand**, and total equity also decreased Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 91,254 | 91,168 | +0.1% | | Total current assets | 38,576 | 45,094 | -14.4% | | Trade receivables | 769 | 7,035 | -89.1% | | Film rights and films and television programmes in progress | 14,638 | 15,940 | -8.1% | | Cash and cash equivalents | 8,685 | 7,626 | +13.9% | | Total current liabilities | 22,830 | 21,182 | +7.8% | | Net current assets | 15,773 | 23,912 | -34.1% | | Total equity | 68,095 | 77,271 | -11.9% | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the parent decreased from **HK$98,949 thousand** to **HK$93,180 thousand**, primarily due to loss for the period and changes in non-controlling interests Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Equity attributable to owners of the parent | 93,180 | 121,429 | | Non-controlling interests | (25,085) | (18,391) | | Total equity | 68,095 | 103,038 | | Loss for the period | (11,139) | (13,155) | | Total comprehensive loss for the period | (9,176) | (15,390) | - As of June 30, 2025, accumulated losses attributable to owners of the parent increased to **HK$1,081,747 thousand** from **HK$1,073,370 thousand** as of January 1, 2024[9](index=9&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities generated a net cash inflow of **HK$241 thousand**, investing activities resulted in a net cash outflow of **HK$33 thousand**, and cash and cash equivalents increased to **HK$8,685 thousand** at period-end Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net cash flows from operating activities | 241 | (7,869) | | Net cash flows from investing activities | (33) | (6) | | Net increase/(decrease) in cash and cash equivalents | 208 | (7,875) | | Cash and cash equivalents at beginning of period | 7,626 | 26,339 | | Cash and cash equivalents at end of period | 8,685 | 18,923 | - The net effect of exchange rate changes on cash and cash equivalents was **HK$851 thousand**, higher than **HK$459 thousand** in the same period last year[12](index=12&type=chunk) Notes to the Condensed Consolidated Financial Statements [General Information and Basis of Preparation](index=8&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company, incorporated in the Cayman Islands and re-domiciled in Bermuda, is listed on the HKEX GEM, with principal activities including artist management, film/TV/online content investment, and new media business, and interim financial statements are prepared in HKD under HKAS 34 and GEM Listing Rules - The Company was incorporated in the Cayman Islands on June 11, 2001, re-domiciled in Bermuda on March 16, 2009, and its shares have been listed on the HKEX GEM since March 26, 2002[13](index=13&type=chunk) - The Group's principal activities are providing artist management services and investing in film, television programmes, and online content[13](index=13&type=chunk) - The interim financial statements are prepared in Hong Kong Dollars in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure provisions of the GEM Listing Rules[14](index=14&type=chunk) [Application of New and Revised Hong Kong Financial Reporting Standards](index=8&type=section&id=Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The accounting policies used in the interim financial statements are consistent with the prior year, and newly revised HKFRSs, such as lack of exchangeability, have no significant impact on the interim financial statements - The accounting policies used in the interim financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[15](index=15&type=chunk) - The application of these revised HKFRSs has no significant impact on the interim financial statements[16](index=16&type=chunk) [Segment Information](index=9&type=section&id=Segment%20Information) The Group operates in three reportable segments: artist management, film/TV/online content, and new media; for the six months ended June 30, 2025, film/TV/online content revenue significantly decreased, new media revenue grew substantially, artist management revenue slightly declined, and all revenue originated from Mainland China - The Group has three reportable operating segments: artist management, film, television programmes and online content, and new media[18](index=18&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$ Thousand) | 2024 Revenue (HK$ Thousand) | Year-on-Year Change (%) | 2025 Results (HK$ Thousand) | 2024 Results (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Artist Management | 105 | 205 | -48.8% | (6) | 628 | | Film, Television Programmes and Online Content | 397 | 3,569 | -88.9% | (9,181) | (4,840) | | New Media Business | 1,643 | 884 | +85.9% | (334) | (3,683) | | Total | 2,145 | 4,658 | -54.0% | (9,521) | (7,895) | - For the six months ended June 30, 2025, all revenue of **HK$2,145 thousand** from external customers originated from Mainland China[21](index=21&type=chunk) [Revenue Breakdown](index=11&type=section&id=Revenue%20Breakdown) For the six months ended June 30, 2025, new media business became the primary revenue source, contributing **HK$1,643 thousand** with **85.9%** year-on-year growth, while film and online program revenue significantly declined, and distribution services generated no revenue Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | New Media Business | 1,643 | 884 | +85.9% | | Television and Online Programmes | 396 | 2,713 | -85.4% | | Distribution Agency Services | – | 855 | -100.0% | | Artist Management | 105 | 205 | -48.8% | | Others | 1 | 1 | 0.0% | | Total | 2,145 | 4,658 | -54.0% | [Other Income and Gains/(Losses)](index=12&type=section&id=Other%20Income%20and%20Gains%2F(Losses)) For the six months ended June 30, 2025, total other income and gains amounted to **HK$1,856 thousand**, a decrease from **HK$3,320 thousand** in the prior year, primarily due to the absence of film investment income, while rental income maintained steady growth Other Income and Gains/(Losses) (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Film investment income | – | 1,039 | -100.0% | | Interest income | 6 | 39 | -84.6% | | Rental income | 1,077 | 1,037 | +3.9% | | Exchange differences, net | (5) | 10 | -150.0% | | Others | 778 | 1,195 | -34.9% | | Total | 1,856 | 3,320 | -44.0% | [Components of Loss Before Tax](index=12&type=section&id=Components%20of%20Loss%20Before%20Tax) For the six months ended June 30, 2025, loss before tax was primarily influenced by staff costs, depreciation, and amortization, with both staff costs and depreciation expenses showing slight year-on-year decreases Components of Loss Before Tax (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 2,556 | 2,683 | -4.7% | | Amortisation of other assets | 14 | 14 | 0.0% | | Staff costs (including directors' emoluments) | 8,060 | 8,562 | -5.9% | | - Salaries and allowances | 7,576 | 8,067 | -6.1% | | - Pension scheme contributions | 484 | 495 | -2.2% | [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) During the reporting period, the Group incurred no income tax expense as no taxable profits were generated in Hong Kong, Korea, or Mainland China, or estimated taxable profits were fully absorbed by tax losses brought forward - No provision for Hong Kong profits tax and Korea corporate income tax was made as the Group generated no taxable profits or estimated taxable profits were fully absorbed by tax losses brought forward during the review period[25](index=25&type=chunk) - No tax was calculated at a 25% rate on taxable profits earned in Mainland China during the period[25](index=25&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=13&type=section&id=Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic loss per share attributable to ordinary equity holders of the parent narrowed to **0.20 HK cents** from **0.24 HK cents** in the prior year, with no diluted loss per share calculated due to the anti-dilutive effect of share options and preference shares Loss Per Share Attributable to Ordinary Equity Holders of the Parent | Metric | For the six months ended June 30, 2025 (HK cents) | For the six months ended June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted loss per share | (0.20) | (0.24) | | Loss attributable to ordinary equity holders of the parent (HK$ Thousand) | (8,377) | (10,140) | | Weighted average number of shares in issue (Thousand shares) | 4,209,130 | 4,209,130 | - No conversion of potential dilutive shares was assumed when calculating diluted loss per share due to the anti-dilutive effect of the Company's share options and preference shares on basic loss per share calculation[26](index=26&type=chunk) [Trade Receivables](index=13&type=section&id=Trade%20Receivables) As of June 30, 2025, trade receivables significantly decreased by **89.1%** to **HK$769 thousand** from **HK$7,035 thousand** as of December 31, 2024, with all balances due within one year - The Group's trading terms with customers are primarily on credit, with credit periods generally ranging from 6 months to 1 year[27](index=27&type=chunk) Ageing Analysis of Trade Receivables (Within 1 year) | Period | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 year | 769 | 7,035 | [Film Rights and Films and Television Programmes in Progress](index=14&type=section&id=Film%20Rights%20and%20Films%20and%20Television%20Programmes%20in%20Progress) As of June 30, 2025, no impairment indicators were identified for film rights and films and television programmes in progress, resulting in no impairment losses recognized for the period, and the Group regularly assesses the recoverable amounts of related assets - At each reporting period end, the Group assesses whether there are any indications that film rights and films and television programmes in progress may be impaired[29](index=29&type=chunk) - As of June 30, 2025, no impairment indicators were identified for film and television programme rights, and thus no impairment losses were recognized by the Group for the six months ended June 30, 2025[29](index=29&type=chunk) [Trade Payables](index=14&type=section&id=Trade%20Payables) As of June 30, 2025, trade payables decreased to **HK$343 thousand** from **HK$427 thousand** as of December 31, 2024, with all balances due within one year Ageing Analysis of Trade Payables (Within 1 year) | Period | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 year | 343 | 427 | [Share Capital and Fair Value Measurement](index=15&type=section&id=Share%20Capital%20and%20Fair%20Value%20Measurement) As of June 30, 2025, the company's issued ordinary share capital remained unchanged at **HK$42,090 thousand**, and directors believe the carrying amounts of financial instruments approximate their fair values Share Capital Information | Share Type | June 30, 2025 (Thousand shares) | June 30, 2025 (HK$ Thousand) | December 31, 2024 (Thousand shares) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Ordinary shares of HK$0.01 par value each | 4,209,130 | 42,090 | 4,209,130 | 42,090 | - The Company's directors believe that the carrying amounts of the Group's financial instruments approximate their fair values as of June 30, 2025, and December 31, 2024[32](index=32&type=chunk) [Commitments and Related Party Transactions](index=15&type=section&id=Commitments%20and%20Related%20Party%20Transactions) As of June 30, 2025, the Group's contracted but unprovided commitments for film rights and films and television programmes in progress amounted to **HK$45,741 thousand**, and key management personnel emoluments remained consistent with the prior year Contracted but Unprovided Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Film rights and films and television programmes in progress | 45,741 | 45,060 | Key Management Personnel Emoluments (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Salaries and allowances | 996 | 1,006 | | Pension scheme contributions | 73 | 66 | | Total | 1,069 | 1,072 | [Interim Dividend](index=16&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 (for the six months ended June 30, 2024: nil)[35](index=35&type=chunk) Management Discussion and Analysis [Financial Review](index=16&type=section&id=Financial%20Review) For the six months ended June 30, 2025, group revenue decreased by **54.0%** to **HK$2,145 thousand**, primarily due to reduced film, TV, and online content revenue, while cost of sales and administrative expenses both declined, and loss attributable to owners of the parent narrowed to **HK$8,377 thousand** Financial Performance Overview (For the six months ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,145 | 4,658 | -54.0% | | Cost of sales | 1,293 | 3,950 | -67.3% | | Administrative expenses | 13,847 | 16,363 | -15.4% | | Loss for the period attributable to owners of the parent | 8,377 | 10,140 | -17.4% | - The decrease in revenue was primarily attributable to reduced revenue from the Group's film, television programmes, and online content businesses[36](index=36&type=chunk) [Business Review](index=17&type=section&id=Business%20Review) The Group adopts cautious investment in film, TV, and online content, while artist management develops talent and income. Music business leverages Amber APP for artist "self-publishing," and new media, centered on Amber PASS card, achieved significant partnerships and breakthroughs in cultural tourism and membership services - Revenue from the film, television programmes, and online content segment was approximately **HK$397 thousand** (2024: HK$3,569 thousand), primarily comprising revenue sharing and production fees from film, television programmes, and online content[38](index=38&type=chunk) - Revenue from the artist management segment was approximately **HK$105 thousand** (2024: HK$205 thousand)[39](index=39&type=chunk) - Revenue from the new media business segment was approximately **HK$1,643 thousand** (2024: HK$884 thousand)[40](index=40&type=chunk) [Film, Television Programmes and Online Content](index=17&type=section&id=Film%2C%20Television%20Programmes%20and%20Online%20Content) The Group adopts a cautious investment strategy in the challenging Chinese online film market, focusing on re-distribution and overseas pre-sales, while its comedy film underperformed, and it plans to leverage licenses for co-developing platform-customized content - China's online film market is in a bottleneck, with only **3 new films** generating over **RMB10 million** in revenue in H1 2025, and total and average box office significantly declining[41](index=41&type=chunk) - In H1 2025, the Group continued its cautious investment strategy in online films, actively promoting second and third-round overseas and new media pre-sales of historical projects to improve capital recovery rates[42](index=42&type=chunk) - The Group's invested comedy film "Moonlight by the Window, Bang!" underperformed pre-release box office expectations due to market competition, low screening rates, and insufficient promotion[44](index=44&type=chunk) - The Group plans to leverage its "Radio and Television Program Production and Operation License" and other permits to actively explore new film and television business lines, co-developing and producing high-profile, platform-customized films or series with partners, subject to sufficient funding[45](index=45&type=chunk) [Short Video Copyright Trading Platform](index=19&type=section&id=Short%20Video%20Copyright%20Trading%20Platform) The Group is developing a decentralized short video copyright trading platform using existing licenses and blockchain technology for rights confirmation and tokenized transactions, aiming to fragment content and resolve traditional copyright challenges to promote efficient content circulation and commercialization - The Group is actively researching and deploying a decentralized short video copyright trading platform, leveraging its existing qualifications and licenses[46](index=46&type=chunk) - The platform will utilize blockchain technology for rights confirmation and tokenized transactions, fragmenting short video content to significantly increase the number of investors and copyright owners[46](index=46&type=chunk) - This model aims to address pain points in traditional copyright trading, such as difficult rights confirmation, trading, and poor liquidity, to build a trustworthy, efficient, and transparent copyright trading ecosystem[46](index=46&type=chunk) [Artist Management](index=19&type=section&id=Artist%20Management) The Group continues to scout potential artists, collaborating with excellent management teams, leveraging its resources and new media exposure to create income streams and increase visibility for artists, while also generating returns for the Group - The Group continues to discover potential artists and collaborate with outstanding industry management teams to re-energize its artist management segment[47](index=47&type=chunk) - The Group will leverage its resource advantages, integrating various business segments, to create income streams for artists through customized performance opportunities and new media exposure[47](index=47&type=chunk) [Music Business](index=19&type=section&id=Music%20Business) Closer Music holds extensive original music copyrights and distribution channels; despite monetization attempts, impairment was recognized due to recoverable amounts below cost. The Group now leverages new media technology to offer a "self-publishing" one-stop service for independent original musicians, addressing creation, publishing, copyright, and revenue issues - Closer Music has accumulated a large number of high-quality original music copyrights and established comprehensive music promotion and distribution channels, collaborating with mainstream domestic and international music platforms[48](index=48&type=chunk)[49](index=49&type=chunk) - Although the Group attempted to monetize music copyrights, management recognized an impairment due to estimated recoverable amounts being below cost[49](index=49&type=chunk) - Leveraging the innovative thinking and technological advantages of its new media business, the Group has created a "self-publishing" one-stop service business model specifically for original independent musicians[49](index=49&type=chunk) [New Media Business](index=20&type=section&id=New%20Media%20Business) The Group invested in Amber APP for its new media segment, integrating blockchain, AIGC, and other technologies to enhance creator experience and explore new business models. The Amber PASS card achieved progress in music, cultural tourism, and membership services, including a strategic partnership with Alipay and pilot operations in national scenic spots - The Group invested significant resources in developing the Amber APP, integrating technologies such as blockchain, Generative AI (AIGC), digital watermarks, NFC, and Augmented Reality (AR) to provide creators with a comprehensive creation and publishing experience[50](index=50&type=chunk) - The Amber APP offers a self-publishing platform for original musicians, ensuring copyright autonomy and value enhancement through official blockchain notarization and ISRC certification in collaboration with China Copyright Chain Company[50](index=50&type=chunk) - The Group has become a partner in the Alipay payment ecosystem, jointly undertaking cultural tourism projects, promoting the cultural tourism PASS card, and transitioning from a "to C" to a "to B" business model[51](index=51&type=chunk)[54](index=54&type=chunk) - The cultural tourism PASS card began pilot operations at Badaling Great Wall in May 2025, and has been issued and sold in other national scenic spots and popular museums, receiving national media coverage[54](index=54&type=chunk)[55](index=55&type=chunk) - The Company provides a one-stop membership service system to customers through its membership APP and PASS card, having signed contracts for medical systems and online consumption platform membership management systems, and is currently negotiating to design VR/AR technology-enabled PASS cards for property developers to promote property sales[58](index=58&type=chunk) Other Information [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after the balance sheet date - No significant events occurred after the balance sheet date[59](index=59&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total assets were **HK$129,830 thousand**, cash and cash equivalents increased to **HK$8,685 thousand**, and the gearing ratio rose to **66.3%**; the Group had no pledged assets or significant contingent liabilities and closely monitors foreign exchange risk Liquidity and Financial Resources Overview | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total assets | 129,830 | 136,262 | | Cash and cash equivalents | 8,685 | 7,626 | | Gearing ratio | 66.3% | 59.6% | | Capital commitments | 45,741 | 45,060 | - Most of the Group's income and expenses are denominated in RMB, and management closely monitors foreign exchange risk, considering hedging when necessary[64](index=64&type=chunk) - As of June 30, 2025, the Group had no pledged assets or significant contingent liabilities[63](index=63&type=chunk)[66](index=66&type=chunk) [Employees](index=24&type=section&id=Employees) As of June 30, 2025, the Group had **54 employees**, with remuneration, promotion, and salary reviews based on job responsibilities, performance, experience, and industry practice; Hong Kong employees participate in the Mandatory Provident Fund Scheme - As of June 30, 2025, the Group had **54 employees** (including approximately **50 employees** in Mainland China and **4 employees** in Hong Kong)[67](index=67&type=chunk) - Employee remuneration, promotion, and salary reviews are assessed based on job responsibilities, work performance, professional experience, and current industry practices[67](index=67&type=chunk) [Significant Investments and Share Option Scheme](index=24&type=section&id=Significant%20Investments%20and%20Share%20Option%20Scheme) During the reporting period, the Group held no significant investments; a new share option scheme adopted on June 21, 2024, aims to recognize and incentivize participant contributions, valid until June 2034, with no outstanding share options as of June 30, 2025 - For the period ended June 30, 2025, the Group held no significant investments[68](index=68&type=chunk) - The Company adopted a new share option scheme to grant share options to eligible participants, recognizing and incentivizing their contributions to the Group[69](index=69&type=chunk) - The share option scheme is valid for **10 years** and will expire in June 2034; as of June 30, 2025, there were no outstanding share options[69](index=69&type=chunk)[70](index=70&type=chunk) [Principal Shareholders](index=25&type=section&id=Principal%20Shareholders) As of June 30, 2025, Jiaxuan Group Limited (controlled by Mr. Huang Guangyu and Mr. Xu Zhongmin) held **47.10%** of shares, CITIC Group Corporation held **10.93%** through its subsidiaries, and Mr. Ko Chun Shun, Peter held **7.40%** through First Charm Investments Limited Principal Shareholders' Shareholding (As of June 30, 2025) | Name of Principal Shareholder | Capacity | Interest in Shares | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Jiaxuan Group Limited | Beneficial owner | 1,982,561,725 | 47.10% | | Pengjian Investment Holdings Limited | Interest in controlled corporation | 1,982,561,725 | 47.10% | | Mr. Huang Guangyu | Interest in controlled corporation | 1,982,561,725 | 47.10% | | Weihao Global Holdings Limited | Interest in controlled corporation | 1,982,561,725 | 47.10% | | Mr. Xu Zhongmin | Interest in controlled corporation | 1,982,561,725 | 47.10% | | CITIC Group Corporation | Interest in controlled corporation | 459,934,954 | 10.93% | | CITIC Limited | Interest in controlled corporation | 459,934,954 | 10.93% | | Famous Peak Investments Limited | Beneficial owner | 459,934,954 | 10.93% | | First Charm Investments Limited | Beneficial owner | 311,545,414 | 7.40% | | Mr. Ko Chun Shun, Peter | Interest in controlled corporation | 311,545,414 | 7.40% | - Jiaxuan is owned **55%** by Pengjian Investment Holdings Limited and **45%** by Weihao Global Holdings Limited; Mr. Huang Guangyu owns **100%** of Pengjian, and Mr. Xu Zhongmin owns **100%** of Weihao[77](index=77&type=chunk) [Corporate Governance](index=27&type=section&id=Corporate%20Governance) The Company is committed to enhancing board quality, internal controls, and shareholder transparency; for the six months ended June 30, 2025, it complied with the GEM Listing Rules' Corporate Governance Code, except for provisions on chairman/CEO roles, non-executive director tenure, and attendance at general meetings, and the Audit Committee reviewed the interim report and results - The Company has consistently complied with the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules, except for Code Provisions A.2.1 (separation of chairman and chief executive roles), A.4.1 (specific tenure for non-executive directors), and A.6.7 (attendance of non-executive directors at general meetings)[78](index=78&type=chunk) - The positions of the Company's Chairman and Chief Executive Officer remain vacant, and the Company continues to seek suitable candidates to fill these vacancies[79](index=79&type=chunk) - The Audit Committee, comprising three members, reviewed the accounting principles and practices adopted by the Group, discussed internal controls and financial reporting matters with the management team, and reviewed the interim report and results before submission to the Board for approval[83](index=83&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 PERSISTENCE RESOURCES GROUP LTD 集海資源集團有限公司 （股份代號：2489） （於開曼群島註冊成立的有限公司） 中期業績公告 截 至2025年6月30日止六個月 財務摘要 截 至2025年6月30日 止 六 個 月，本 集 團 之 收 入 約 為 人 民 幣303,493,000元（2024年 6月30日：人 民 幣236,173,000元），較 上 一 期 間 增 加 約28.5%。 截 至2025年6月30日 止 六 個 月，本 集 團 之 淨 溢 利 約 為 人 民 幣85,501,000元（2024 年6月30日：人 民 幣78,867,000元），較 上 一 期 間 增 加 約8.4%。 截 至2025年6月30日 止 六 個 月，母 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的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 招商銀行股份有限公司 CHINA MERCHANTS BANK CO., LTD. （於中華人民共和國註冊成立的股份有限公司） （H股股票代碼：03968） 2025年中期業績公告 招商銀行股份有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬 公司截至2025年6月30日止六個月之未經審計業績。本公告列載本公司2025年中 期報告全文，並符合香港聯合交易所有限公司證券上市規則中有關中期業績初步 公告附載的資料之要求。本公司2025年中期報告將適時刊載於香港交易及結算所 有限公司網站( www.hkex.com.hk )及本公司網站( www.cmbchina.com )並按本公司 H股股東選擇收取公司通訊的方式寄發予本公司H股股東。 發佈業績公告 本業績公告的中英文版本可在香港交易及結算所有限公司網站( www.hkex.com.hk ) 和本公司網站( www.cmbchina.com ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 表 明 概 不 就 因 本 公 告 全 部 或 任 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Fenbi Ltd. 粉筆有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2469） 截 至2025年6月30日止六個月之 中期業績公告 截 至6月30日止六個月 | | | | | | | | | | | | | | | | 2025年 | 2024年 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | 人民幣千元 | 人民幣千元 | | | | | | | | | | | | | | | | | （未經審計） | （未經審計） | | 收 | 入 | | | | | | | | | | | | | | 1,491,952 ...