[2025 Interim Results Highlights (Unaudited)](index=4&type=section&id=2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) This section provides a concise overview of the Group's unaudited financial performance for the interim period, highlighting key revenue, profit, and expense changes - The Group's revenue increased by **15.7%** from approximately **HKD 19.9 million** in the corresponding period to approximately **HKD 23.0 million** in the current period[7](index=7&type=chunk) - Gross profit increased from approximately **HKD 9.4 million** in the corresponding period to approximately **HKD 10.9 million** in the current period, with gross margin also increasing from **47.3% to 47.5%**[7](index=7&type=chunk) - Operating expenses increased by **6.8%** to approximately **HKD 11.0 million**, primarily due to higher staff costs and travel expenses[7](index=7&type=chunk) - Profit and total comprehensive income for the period increased to **HKD 24,959**, compared to a loss and total comprehensive expense of approximately **HKD 0.6 million** in the corresponding period, mainly driven by increased revenue[7](index=7&type=chunk) - The Board of Directors resolved not to declare an interim dividend for the current period[8](index=8&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the Group's financial performance, including revenue, expenses, and profit or loss, for the interim periods Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | For the six months ended June 30, 2025 (HKD) | For the six months ended June 30, 2024 (HKD) | | :--- | :--- | :--- | | Revenue | 23,041,649 | 19,918,050 | | Cost of sales and services | (12,099,177) | (10,487,018) | | Gross profit | 10,942,472 | 9,431,032 | | Other income and other gains | 194,488 | 300,344 | | Operating expenses | (11,031,415) | (10,328,850) | | Loss before income tax | (87,683) | (727,990) | | Income tax credit | 112,642 | 89,061 | | Profit/(Loss) and total comprehensive income/(expense) for the period | 24,959 | (638,929) | | Basic and diluted earnings/(loss) per share | 0.00 | (0.06) | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement provides a snapshot of the Group's assets, liabilities, and equity as of the reporting dates Condensed Consolidated Statement of Financial Position | Indicator | As of June 30, 2025 (HKD) | As of December 31, 2024 (HKD) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 4,253,410 | 5,653,030 | | Current assets | 34,105,494 | 26,320,038 | | **Liabilities** | | | | Current liabilities | 17,280,950 | 10,101,442 | | Non-current liabilities | 958,661 | 1,777,292 | | **Equity** | | | | Net assets/Total equity | 20,119,293 | 20,094,334 | | Net current assets | 16,824,544 | 16,218,596 | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement details the changes in the Group's equity components over the interim period, reflecting profit and other movements Condensed Consolidated Statement of Changes in Equity | Item | Balance as of January 1, 2025 (Audited) (HKD) | Profit and Total Comprehensive Income for the Period (HKD) | Balance as of June 30, 2025 (Unaudited) (HKD) | | :--- | :--- | :--- | :--- | | Share capital | 10,000,000 | – | 10,000,000 | | Share premium | 55,098,836 | – | 55,098,836 | | Merger reserve | (3,416,148) | – | (3,416,148) | | Statutory reserve | 504,489 | – | 504,489 | | Accumulated losses | (42,092,843) | 24,959 | (42,067,884) | | **Total** | **20,094,334** | **24,959** | **20,119,293** | - A profit of **HKD 24,959** was recorded for the period, leading to a reduction in accumulated losses and a slight increase in total equity[14](index=14&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the interim periods Condensed Consolidated Statement of Cash Flows | Item | For the six months ended June 30, 2025 (HKD) | For the six months ended June 30, 2024 (HKD) | | :--- | :--- | :--- | | Net cash used in/(generated from) operating activities | (3,272,147) | 2,800,976 | | Net cash generated from/(used in) investing activities | 1,942,113 | (69,611) | | Net cash used in financing activities | (1,047,144) | (1,133,745) | | Net decrease/(increase) in cash and cash equivalents | (2,377,178) | 1,597,620 | | Cash and cash equivalents at end of period | 5,762,239 | 13,841,466 | - Net cash flow from operating activities shifted from a net inflow in the corresponding period of 2024 to a net outflow of **HKD 3,272,147** in the corresponding period of 2025[15](index=15&type=chunk) - Net cash flow from investing activities changed from a net outflow in the corresponding period of 2024 to a net inflow of **HKD 1,942,113** in the corresponding period of 2025, primarily due to the maturity of fixed bank deposits[15](index=15&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=10&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed explanations and disclosures supporting the condensed consolidated interim financial statements [1. General Information and Basis of Preparation](index=10&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99%E5%8F%8A%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section outlines the company's registration, listing status, principal places of business, core operations, and the basis for preparing the financial statements - Asia Pioneer Entertainment Holdings Limited was incorporated in the Cayman Islands on February 22, 2017, with its shares listed on GEM of The Stock Exchange of Hong Kong since November 15, 2017[16](index=16&type=chunk) - The Group is primarily engaged in the electronic gaming equipment business, including technical sales and distribution, consulting and technical services, and repair services, as well as the smart vending machine business, encompassing product sales, machine leasing, and franchising[18](index=18&type=chunk)[23](index=23&type=chunk) - The condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of the GEM Listing Rules, presented in Hong Kong Dollars[20](index=20&type=chunk)[21](index=21&type=chunk) [2. Principal Accounting Policies](index=11&type=section&id=2.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This section outlines the historical cost basis for preparing the interim financial statements and notes the immaterial impact of new IFRS amendments - The condensed consolidated interim financial statements are prepared on a historical cost basis, except for financial assets measured at fair value through other comprehensive income[22](index=22&type=chunk) - Amendments to International Accounting Standard 21 'Lack of Exchangeability', effective January 1, 2025, had no material impact on the Group's condensed consolidated interim financial statements[24](index=24&type=chunk)[25](index=25&type=chunk) [3. Revenue and Segment Information](index=12&type=section&id=3.%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) This section details the Group's revenue sources and segment performance, including breakdowns by business type, geography, and revenue recognition timing [3.1 Revenue Disaggregation](index=12&type=section&id=3.1%20%E6%94%B6%E5%85%A5%E7%B4%B0%E5%88%86) This subsection provides detailed revenue data by product/service type, geographic market, and recognition timing, highlighting electronic gaming equipment as the primary source Revenue by Business Type for H1 2025 | Business Type | H1 2025 Revenue (HKD) | | :--- | :--- | | Technical sales and distribution of electronic gaming equipment | 19,274,989 | | Consulting and technical services | 2,516,772 | | Repair services | 204,247 | | Product sales through smart vending machines | 711,975 | | Leasing of smart vending machines | 318,001 | | Franchising | 15,665 | | **Total** | **23,041,649** | - Macau is the Group's most significant geographical market, contributing **HKD 19,549,410** in revenue during H1 2025[30](index=30&type=chunk) - The majority of revenue (**HKD 21,372,894**) was recognized at a point in time, while **HKD 1,350,754** was recognized over a period of time[30](index=30&type=chunk) [3.2 Segment Information](index=17&type=section&id=3.2%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) This subsection presents reported segment revenue, results, assets, and liabilities for the electronic gaming equipment and smart vending machine businesses Reported Segment Results for H1 2025 | Segment | Reported Segment Revenue (HKD) | Reported Segment Results (HKD) | | :--- | :--- | :--- | | Electronic gaming equipment business | 21,996,008 | 2,169,222 | | Smart vending machine business | 1,045,641 | (351,437) | | **Total** | **23,041,649** | **1,817,785** | - The electronic gaming equipment business is the primary contributor to profit, while the smart vending machine business remains in a loss-making position[34](index=34&type=chunk) - Depreciation of property and equipment was **HKD 336,160** and depreciation of right-of-use assets was **HKD 955,654** for H1 2025[35](index=35&type=chunk) [4. Other Income and Other Gains](index=21&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A) This section details the Group's other income and gains, including bank interest, delivery freight, and net foreign exchange gains Other Income and Other Gains | Item | For the six months ended June 30, 2025 (HKD) | For the six months ended June 30, 2024 (HKD) | | :--- | :--- | :--- | | Bank interest income | 84,927 | 19,142 | | Delivery freight income | 37,087 | 75,770 | | Other income | 47,736 | 31,757 | | Net foreign exchange gains | 24,738 | 173,675 | | **Total** | **194,488** | **300,344** | - Bank interest income significantly increased year-on-year, while net foreign exchange gains substantially decreased[39](index=39&type=chunk) [5. Net Reversal of Expected Credit Losses](index=22&type=section&id=5.%20%E9%A0%90%E6%9C%9F%E4%BF%A1%E8%B2%B8%E虧%E6%90%8D%EF%BC%88%E3%80%8C%E9%A0%90%E6%9C%9F%E4%BF%A1%E8%B2%B8%E虧%E6%90%8D%E3%80%8D%EF%BC%89%E5%9B%9E%E6%92%A5%E6%B7%A8%E9%A1%8D) This section reports the net reversal of expected credit losses on trade receivables for the current period - For the six months ended June 30, 2025, the net reversal of expected credit losses was **HKD 2,933**, a decrease from **HKD 6,949** in the corresponding period of 2024[40](index=40&type=chunk) [6. Income Tax Credit](index=22&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D) This section explains the Group's income tax credit, primarily from deferred tax, and its tax treatment across different jurisdictions - For the six months ended June 30, 2025, the income tax credit was **HKD 112,642**, primarily arising from deferred tax[41](index=41&type=chunk) - The Group did not generate assessable profits in Macau, the Cayman Islands, the British Virgin Islands, or China, thus no current income tax provision was made[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [7. Profit/(Loss) for the Period](index=23&type=section&id=7.%20%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) This section lists the main expenses deducted in calculating the profit or loss for the period, including directors' emoluments, staff costs, depreciation, and inventory costs Expenses Deducted in Calculating Profit/(Loss) for the Period | Item | For the six months ended June 30, 2025 (HKD) | For the six months ended June 30, 2024 (HKD) | | :--- | :--- | :--- | | Directors' emoluments | 2,378,184 | 2,005,857 | | Other staff costs | 5,103,992 | 5,152,840 | | Total depreciation | 1,291,814 | 1,350,615 | | Inventory costs recognized as expenses | 10,966,420 | 8,349,864 | | Costs of services provided | 104,924 | 774,722 | - Directors' emoluments and inventory costs recognized as expenses increased year-on-year, while costs of services provided significantly decreased[45](index=45&type=chunk) [8. Dividends](index=23&type=section&id=8.%20%E8%82%A1%E6%81%AF) This section confirms that the Company neither paid nor proposed any dividends during the current period - For the six months ended June 30, 2025, the Company neither paid nor proposed any dividends[46](index=46&type=chunk) [9. Earnings/(Loss) Per Share](index=24&type=section&id=9.%20%E6%AF%8F%E8%82%A1%E7%87%9F%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) This section presents the basic and diluted earnings/loss per share attributable to the Company's owners and explains their calculation basis Earnings/(Loss) Per Share | Indicator | For the six months ended June 30, 2025 (HK cents) | For the six months ended June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 0.00 | (0.06) | | Diluted earnings/(loss) per share | 0.00 | (0.06) | - Earnings per share turned from loss to profit in the current period, and diluted earnings per share were the same as basic earnings per share due to the absence of potential ordinary shares in both periods[47](index=47&type=chunk) [10. Property and Equipment](index=24&type=section&id=10.%20%E7%89%A9%E6%A5%AD%E5%8F%8A%E8%A8%AD%E5%82%99) This section provides a breakdown of the carrying values of property and equipment, including furniture, computers, motor vehicles, and vending machines, and discloses acquisitions for the period Property and Equipment Carrying Values | Item | As of June 30, 2025 (HKD) | As of December 31, 2024 (HKD) | | :--- | :--- | :--- | | Furniture, fixtures and equipment | 10,858 | – | | Computers | 310,723 | 335,518 | | Motor vehicles | 50,400 | 67,200 | | Vending machines | 688,496 | 954,244 | | **Total carrying value** | **1,060,477** | **1,356,962** | - The total carrying value of property and equipment decreased, with acquisitions of **HKD 39,675** in the current interim period, a significant reduction from **HKD 327,747** in the corresponding period of 2024[49](index=49&type=chunk) [11. Right-of-Use Assets](index=25&type=section&id=11.%20%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) This section details the carrying values and depreciation of right-of-use assets, primarily for vending machine properties, office properties, warehouses, and car parks, along with lease agreement information Right-of-Use Assets Carrying Values and Depreciation | Item | As of June 30, 2025 (HKD) | As of January 1, 2025 (HKD) | Depreciation for the six months ended June 30, 2025 (HKD) | | :--- | :--- | :--- | :--- | | Properties used for vending machines | 264,081 | 458,551 | 211,436 | | Office properties | 1,766,479 | 2,355,306 | 588,826 | | Warehouses | 103,922 | 228,628 | 124,706 | | Car parks | 51,143 | 81,829 | 30,686 | | **Total carrying value** | **2,185,625** | **3,124,314** | **955,654** | - As of June 30, 2025, the Group had 10 lease agreements for properties used for vending machines, office properties, warehouses, and car parks, with remaining lease terms of **1 to 3 years**[51](index=51&type=chunk) - The carrying values of right-of-use assets and lease liabilities were **HKD 2,185,625** and **HKD 2,293,092**, respectively[51](index=51&type=chunk) [12. Inventories](index=26&type=section&id=12.%20%E5%AD%98%E8%B2%A8) This section provides a detailed classification of inventories, including spare parts, finished goods, merchandise, and goods in transit, and discloses inventory write-down provisions for the period Inventories Breakdown | Item | As of June 30, 2025 (HKD) | As of December 31, 2024 (HKD) | | :--- | :--- | :--- | | Spare parts | 1,707,543 | 1,920,413 | | Finished goods | 4,810,110 | 753,096 | | Merchandise | 409,036 | 403,082 | | Goods in transit | 2,197 | 120,490 | | **Total** | **6,928,886** | **3,197,081** | - Finished goods inventories significantly increased, and the inventory write-down provision for the six months ended June 30, 2025, was **HKD 114,768**, a notable increase from **HKD 7,731** in the corresponding period of 2024[52](index=52&type=chunk) [13. Trade and Other Receivables](index=27&type=section&id=13.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) This section details trade and other receivables, prepayments, and deposits, and provides an aging analysis of trade receivables Trade and Other Receivables Breakdown | Item | As of June 30, 2025 (HKD) | As of December 31, 2024 (HKD) | | :--- | :--- | :--- | | Trade receivables (net) | 15,015,858 | 7,909,705 | | Other receivables, prepayments and deposits | 4,003,702 | 2,946,611 | | **Total** | **19,019,560** | **10,856,316** | - Total trade receivables significantly increased, with an average credit period of **30 days**[53](index=53&type=chunk) Aging Analysis of Trade Receivables (Net of ECL Provision) | Aging | As of June 30, 2025 (HKD) | As of December 31, 2024 (HKD) | | :--- | :--- | :--- | | 0 to 30 days | 14,698,119 | 7,768,381 | | 31 to 60 days | 278,717 | 97,994 | | 61 to 90 days | 41,200 | 45,291 | | 91 to 180 days | – | 3,150 | | **Total** | **15,018,036** | **7,914,816** | [14. Trade and Other Payables](index=28&type=section&id=14.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) This section provides a breakdown of trade and other payables, including staff salaries, other accrued expenses, and restoration provisions, along with an aging analysis of trade payables Trade and Other Payables Breakdown | Item | As of June 30, 2025 (HKD) | As of December 31, 2024 (HKD) | | :--- | :--- | :--- | | Trade payables | 9,644,145 | 3,736,457 | | Accrued staff salaries and other accrued staff costs | 365,891 | 424,688 | | Other payables and accrued expenses | 1,274,051 | 1,689,179 | | Restoration provision | 533,981 | 533,981 | | Lease and franchise deposits received | 69,655 | 74,510 | | **Total** | **11,887,723** | **6,458,815** | - Trade payables significantly increased, with credit terms ranging from **30 to 60 days**[56](index=56&type=chunk) Aging Analysis of Trade Payables | Aging | As of June 30, 2025 (HKD) | As of December 31, 2024 (HKD) | | :--- | :--- | :--- | | 0 to 30 days | 1,321,042 | 1,407,262 | | 31 to 60 days | 8,285,738 | 2,316,088 | | Over 90 days | 37,365 | 13,107 | | **Total** | **9,644,145** | **3,736,457** | [15. Contract Liabilities](index=29&type=section&id=15.%20%E5%90%88%E7%B4%84%E8%B2%A0%E5%82%B5) This section explains the nature of contract liabilities, primarily non-refundable deposits for future gaming machine and equipment sales and software update support services Contract Liabilities Breakdown | Item | As of June 30, 2025 (HKD) | As of December 31, 2024 (HKD) | | :--- | :--- | :--- | | Technical sales and distribution of electronic gaming equipment | 2,287,669 | 14,564 | | Consulting and technical services | 181,597 | 461,305 | | **Total** | **2,469,266** | **475,869** | - Contract liabilities significantly increased, primarily due to a notable rise in advance payments for technical sales and distribution of electronic gaming equipment[57](index=57&type=chunk) [16. Share Option Scheme](index=30&type=section&id=16.%20%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) This section describes the Group's share option scheme and confirms that no share options were granted during the current period - No share options were granted under the share option scheme for the six months ended June 30, 2025, or as of June 30, 2025[58](index=58&type=chunk) [17. Share Capital](index=30&type=section&id=17.%20%E8%82%A1%E6%9C%AC) This section outlines the Company's authorized and issued ordinary share capital, noting its unchanged status during the reporting period - The Company's authorized share capital consists of **10,000,000,000** ordinary shares of **HKD 0.01** each, with **1,000,000,000** shares issued and fully paid[59](index=59&type=chunk) - The share capital structure has remained unchanged since January 1, 2024[59](index=59&type=chunk) [18. Lease Commitments](index=31&type=section&id=18.%20%E7%A7%9F%E8%B3%83%E6%89%BF%E6%93%94) This section details the Group's lease commitments as a lessee (short-term leases) and as a lessor (operating leases) Lease Commitments | Item | As of June 30, 2025 (HKD) | As of December 31, 2024 (HKD) | | :--- | :--- | :--- | | **As Lessee (Short-term Lease Commitments)** | | | | Within one year | 176,672 | 72,563 | | After one year but within two years | 2,913 | – | | **Total** | **179,585** | **72,563** | | **As Lessor (Future Minimum Lease Receivables)** | | | | Within one year | 151,719 | 244,374 | | After one year but within two years | – | 2,670 | | **Total** | **151,719** | **247,044** | - Short-term lease commitments as a lessee significantly increased, while future minimum lease receivables as a lessor decreased[60](index=60&type=chunk)[61](index=61&type=chunk) [19. Fair Value Measurement of Financial Instruments](index=31&type=section&id=19.%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F) This section outlines the Company's directors' assessment of the fair value of financial instruments - The Company's directors believe that the carrying amounts of financial assets and financial liabilities recognized in the condensed consolidated interim financial statements approximate their fair values[62](index=62&type=chunk) [Management Discussion and Analysis](index=32&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides management's perspective on the Group's financial performance, operational highlights, and future outlook [Business Review](index=32&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the performance of the Group's electronic gaming equipment and smart vending machine businesses, highlighting revenue changes and operational achievements - Revenue from technical sales and distribution of electronic gaming equipment increased by **39.6%** year-on-year to **HKD 19.3 million**[65](index=65&type=chunk) - Consulting and technical services revenue decreased by **45.2%** year-on-year, while repair services revenue decreased by **54.8%**[65](index=65&type=chunk) - As of June 30, 2025, the smart vending machine business had **56** different types of vending machines installed, generating approximately **HKD 1.0 million** in revenue and approximately **HKD 0.4 million** in gross profit for the period[66](index=66&type=chunk) - The smart vending machine business collaborates with renowned Macau brands like Choi Heong Yuen and Wong Chi Kei to operate and promote customized vending machines[66](index=66&type=chunk) [Outlook](index=33&type=section&id=%E5%B1%95%E6%9C%9B) This section outlines the Group's expectations and strategies for future business development, including continued growth in electronic gaming equipment, new technology introduction, and product portfolio expansion - Recovery-driven growth is expected to continue into H2 2025 and beyond as casinos further strengthen their financial positions[67](index=67&type=chunk) - The Group is collaborating with suppliers to launch new machines and products to meet the growing demand in the mass gaming market, with some developments involving new technologies for the gaming industry[67](index=67&type=chunk) - The Group is committed to expanding its product portfolio by introducing complementary products for casinos to use in their gaming-related or marketing-related operations[67](index=67&type=chunk) [Financial Review](index=34&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed financial review, covering total revenue, segment revenue changes, gross margin, other income, operating expenses, impairment losses on financial assets, and profit for the period [Revenue](index=34&type=section&id=%E6%94%B6%E5%85%A5) This subsection summarizes the Group's total revenue growth and identifies technical sales and distribution of electronic gaming equipment as the primary driver - The Group's total revenue increased by approximately **15.7%** from approximately **HKD 19.9 million** in the corresponding period to approximately **HKD 23.0 million** in the current period[69](index=69&type=chunk) - The increase in revenue was primarily driven by a **39.6%** rise in income from technical sales and distribution of electronic gaming equipment[69](index=69&type=chunk) Revenue Comparison by Major Products and Services | Major Products and Services Revenue | For the six months ended June 30, 2025 (HKD) | For the six months ended June 30, 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Technical sales and distribution of electronic gaming equipment | 19,274,989 | 13,810,608 | 39.6% | | Consulting and technical services | 2,516,772 | 4,589,218 | (45.2%) | | Repair services | 204,247 | 451,924 | (54.8%) | | Product sales through smart vending machines | 711,975 | 978,655 | (27.2%) | | Leasing of smart vending machines | 318,001 | 66,825 | 375.9% | | Franchising | 15,665 | 20,820 | (24.8%) | | **Total** | **23,041,649** | **19,918,050** | **15.7%** | [Analysis of Revenue and Gross Margin by Business Segment](index=35&type=section&id=%E5%90%84%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E6%94%B6%E5%85%A5%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87%E5%88%86%E6%9E%90) This subsection analyzes revenue changes and gross margin performance across product and service lines, revealing profitability and trends in different business segments - Revenue from technical sales and distribution of electronic gaming equipment increased by **39.6%** to approximately **HKD 19.3 million**, with a gross margin of **45.5%** (corresponding period: **46.6%**)[71](index=71&type=chunk)[72](index=72&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) - Consulting and technical services revenue decreased by **45.2%** to approximately **HKD 2.5 million**, but the gross margin increased to **69.5%** (corresponding period: **61.9%**)[73](index=73&type=chunk)[74](index=74&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) - Repair services revenue decreased by **54.8%** to approximately **HKD 0.2 million**, with a gross margin of **26.6%** (corresponding period: **-4%**)[75](index=75&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) - Revenue from leasing smart vending machines significantly increased by **375.9%** to approximately **HKD 0.3 million**, achieving a gross margin of **100%**[77](index=77&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) - The Group's overall gross margin increased from approximately **47.3%** in the corresponding period to approximately **47.5%** in the current period, primarily due to the increased gross margin of consulting and technical services[81](index=81&type=chunk) [Other Income and Other Gains](index=37&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A) This subsection explains the changes in other income and gains for the period, particularly the decrease in net foreign exchange gains - The Group generated net foreign exchange gains of **HKD 24,738** in the current period, a significant decrease from **HKD 173,675** in the corresponding period, mainly due to fluctuations in the Euro against the Hong Kong Dollar[82](index=82&type=chunk) [Operating Expenses](index=37&type=section&id=%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF) This subsection explains the increase in operating expenses, primarily attributed to higher staff costs and travel expenses - The Group's operating expenses increased by approximately **6.8%** from approximately **HKD 10.3 million** in the corresponding period to approximately **HKD 11.0 million** in the current period, mainly due to increased staff costs and travel expenses[83](index=83&type=chunk) [Impairment Loss on Financial Assets](index=37&type=section&id=%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E虧%E6%90%8D) This subsection reports the net reversal of expected credit losses on trade receivables for the current period - The Group recognized a net reversal of expected credit losses on trade receivables of **HKD 2,933** in the current period[84](index=84&type=chunk) [Profit](index=37&type=section&id=%E5%88%A9%E6%BD%A4) This subsection highlights the Group's profitability for the period, primarily driven by revenue growth - The Group recorded a net profit attributable to owners of the Company of **HKD 24,959** in the current period, compared to a net loss of approximately **HKD 0.6 million** in the corresponding period, primarily due to a **15.7%** increase in revenue[85](index=85&type=chunk) [Liquidity, Financial Resources, Gearing Ratio and Capital Structure](index=37&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E3%80%81%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) This subsection discusses the Group's liquidity, funding sources, and capital structure, noting its robust net current assets and absence of bank borrowings - As of June 30, 2025, the Group's net current assets were approximately **HKD 16.8 million** (December 31, 2024: approximately **HKD 16.2 million**)[86](index=86&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no bank borrowings, bank overdrafts, or other bank loans[86](index=86&type=chunk) - The gearing ratio is not applicable to the Group, and the capital structure, comprising issued share capital and reserves, has remained unchanged since December 31, 2024[86](index=86&type=chunk) [Future Plans for Material Investments or Capital Assets](index=38&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) This section states that, apart from disclosed information, the Group currently has no other significant future plans for investments or capital assets - Save as disclosed in this report, as of the date of this report, the Group has no other plans for material investments or capital assets[88](index=88&type=chunk) [Material Investments or Material Acquisitions and Disposals](index=38&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) This section confirms that the Group did not undertake any material investment, acquisition, or disposal activities during the current period - The Group did not make any material investments or material acquisitions and disposals of subsidiaries, associates, or joint ventures during the current period[89](index=89&type=chunk) [Contingent Liabilities](index=38&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) This section reports that the Group had no significant contingent liabilities at the end of the reporting period - As of June 30, 2025, and December 31, 2024, the Group had no material contingent liabilities[90](index=90&type=chunk) [Employees and Remuneration Policy](index=38&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) This section provides information on the Group's employee count, remuneration policy, and training initiatives to enhance staff performance - As of June 30, 2025, the Group had a total of **39** employees (June 30, 2024: **38** employees)[91](index=91&type=chunk) - Employee remuneration is determined based on individual work experience and performance, with discretionary bonuses and allowances potentially granted[91](index=91&type=chunk) - During the current period, the Group incurred staff costs (including directors' emoluments) of approximately **HKD 7.5 million**[91](index=91&type=chunk) - The Group continuously provides on-the-job training to its employees and external training from electronic gaming equipment manufacturers to enhance their performance and professional skills[91](index=91&type=chunk) [Pledge of Group Assets](index=38&type=section&id=%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) This section confirms that the Group had not pledged any of its assets at the end of the reporting period - As of June 30, 2025, the Group had not pledged any of its assets[92](index=92&type=chunk) [Treasury Policy](index=38&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) This section describes the Group's treasury policy, emphasizing prudent management of cash balances and maintaining robust liquidity to seize future growth opportunities - The Directors will continue to adopt a prudent policy in managing the Group's cash balances and maintaining robust liquidity to ensure the Group is prepared to capitalize on future growth opportunities[93](index=93&type=chunk) - As of June 30, 2025, all cash on hand was deposited with licensed financial institutions in Hong Kong SAR, Macau SAR, and China[93](index=93&type=chunk) [Customer Relationships](index=39&type=section&id=%E5%AE%A2%E6%88%B6%E9%97%9C%E4%BF%82) This section highlights the importance of long-term stable relationships with key customers and suppliers, listing major customers contributing over 10% of total revenue - Most of the Group's major customers are Macau SAR casino operators listed on the Stock Exchange[94](index=94&type=chunk) - The Group is committed to building long-term stable business relationships with existing customers through its sales, marketing, and technical services teams[94](index=94&type=chunk) Revenue from Customers Contributing Over 10% of Total Revenue | Customer | For the six months ended June 30, 2025 (HKD) | For the six months ended June 30, 2024 (HKD) | | :--- | :--- | :--- | | Customer A | 14,664,073 | Not applicable | | Customer B | 2,916,181 | Not applicable | | Customer C | Not applicable | 8,712,690 | | Customer D | Not applicable | 6,821,716 | Corresponding revenue did not account for more than 10% of the Group's revenue. [Foreign Exchange Risk](index=39&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) This section explains the Group's foreign exchange risk, primarily from Euro-denominated expenses, and reports changes in net foreign exchange gains - The Group primarily settles with customers in HKD, MOP, and EUR, with the main foreign currency fluctuation risk arising from Euro-denominated supply expenses[96](index=96&type=chunk) - During the current period, the Group's net foreign exchange gains decreased from **HKD 173,675** in the corresponding period to **HKD 24,738**, due to fluctuations in the HKD against the Euro[96](index=96&type=chunk) [Dividends](index=39&type=section&id=%E8%82%A1%E6%81%AF) This section reiterates the Board's decision not to declare an interim dividend for the current period - The Board of Directors has resolved not to declare an interim dividend for the current period[97](index=97&type=chunk) [Disclosure of Interests](index=40&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) This section details the interests and short positions of directors, chief executives, substantial shareholders, and other persons in the Company's shares and underlying shares [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=40&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section discloses the long positions of directors and the Company's chief executive in the Company's shares as of June 30, 2025 Directors' and Chief Executive's Long Positions in the Company's Shares | Name of Director/Chief Executive | Capacity/Nature of Interest | Number of Shares/Underlying Shares in which Interests are Held | Approximate Percentage of Issued Shares* | | :--- | :--- | :--- | :--- | | Mr. Hui Tat Yan | Beneficial owner | 295,759,680 | 29.57% | | Mr. Ng Man Ho | Beneficial owner | 289,939,680 | 28.99% | | Mr. Chan Tsz Lun | Beneficial owner | 153,490,640 | 15.34% | * Percentage refers to the total number of shares and underlying shares (if any) in which interests are held divided by the number of issued shares as of June 30, 2025 (i.e., 1,000,000,000 shares). - Save as disclosed above, no director or chief executive of the Company held any other interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[100](index=100&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=41&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section states that, apart from directors and the chief executive, no other persons or entities held 5% or more equity interests in the Company - As of June 30, 2025, other than the directors and chief executive of the Company, no other person or entity had informed the Company of interests or short positions of **5% or more** in the shares and underlying shares required to be recorded in the register under Section 336 of the Securities and Futures Ordinance[101](index=101&type=chunk) [Corporate Governance and Other Information](index=42&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers the Company's corporate governance practices, compliance with codes, and other relevant information [Directors' and Controlling Shareholders' Interests in Competing Business](index=42&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%8E%A7%E8%82%A1%E8%82%A1%E6%9D%B1%E6%96%BC%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99%E4%B9%8B%E6%AC%8A%E7%9B%8A) This section confirms that no directors or controlling shareholders, or their close associates, held any interests in businesses competing with the Group during the period - During the current period, no directors or controlling shareholders, or their respective close associates, held any business or interests in businesses that directly or indirectly compete or may compete with the Group's business[103](index=103&type=chunk) [Compliance with the Corporate Governance Code](index=42&type=section&id=%E9%81%B5%E5%AE%88%E3%80%8A%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87%E3%80%8B) This section states that the Company has fully complied with all mandatory disclosure requirements and applicable code provisions of the Corporate Governance Code - The Company has adopted and complied with all mandatory disclosure requirements and applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the GEM Listing Rules during the current period[104](index=104&type=chunk) [Directors' Securities Transactions](index=42&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) This section confirms that all directors fully complied with the required standards for securities transactions during the current period - Following specific enquiries made by the Company to each Director, all Directors confirmed full compliance with the required standards for securities transactions as set out in Rules 5.48 to 5.67 of the GEM Listing Rules during the current period[105](index=105&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=42&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) This section reports that neither the Company nor its subsidiaries engaged in any purchase, sale, or redemption of listed securities during the current period - During the current period, the Company did not redeem any of its listed securities, nor did the Company or any of its subsidiaries purchase or sell any such securities[106](index=106&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[107](index=107&type=chunk) [Share Option Scheme](index=42&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) This section details the Company's share option scheme, including its purpose, eligibility, total share limits, and exercise terms, confirming no options were granted during the period - The share option scheme aims to recognize and reward participants by granting share options as an incentive or acknowledgment of their contributions to the Group[108](index=108&type=chunk) - The total number of shares that may be issued upon exercise of all options granted under the share option scheme shall not exceed **100,000,000** shares, representing **10%** of the issued shares upon listing[109](index=109&type=chunk) - As of the date of this report, the Company had not granted or issued any share options, and there were no outstanding share options as of June 30, 2025[110](index=110&type=chunk) [Significant Post Balance Sheet Events](index=43&type=section&id=%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) This section states that, as of the report date, the Board is unaware of any significant post-balance sheet events requiring disclosure - Subsequent to June 30, 2025, and up to the date of this report, the Board is not aware of any significant events requiring disclosure[111](index=111&type=chunk) [Changes in Directors' Information](index=44&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E6%9B%B4) This section confirms that no changes in directors' information requiring disclosure have occurred since the date of the previous annual report - No changes in directors' information requiring disclosure under Rule 17.50A(1) of the GEM Listing Rules have occurred since the date of the Company's annual report for the year ended December 31, 2024[113](index=113&type=chunk) [Review by Audit Committee](index=44&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1) This section describes the Audit Committee's composition and responsibilities, confirming its review of the Group's unaudited condensed consolidated financial statements and this report - The Audit Committee currently comprises all three independent non-executive Directors: Mr. Choi Kwok Wai, Mr. Ma Chi Seng, and Mr. Ho King Lun, with Mr. Choi Kwok Wai serving as Chairman[114](index=114&type=chunk) - The Audit Committee's primary responsibilities include advising the Board on the appointment, reappointment, and removal of external auditors, and reviewing and overseeing the Group's financial reporting process, risk management, and internal control systems[114](index=114&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements and this report for the current period, deeming them prepared in compliance with applicable accounting standards, the GEM Listing Rules, and other relevant legal requirements, with adequate disclosures made[114](index=114&type=chunk)

[Summary](index=1&type=section&id=Summary) The Group recorded revenue of **RMB 67.6 million** and gross profit of **RMB 10.3 million** for the six months ended June 30, 2025, turning to a loss attributable to owners of the Company of **RMB 8.5 million** with a loss per share of **RMB 1.55 cents** - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) Key Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | Amount (RMB) | Change (%) | | :--- | :--- | :--- | | Revenue | 67.6 million | +6.2% | | Gross Profit | 10.3 million | +5.5% | | Loss attributable to owners of the Company | 8.5 million | N/A (Turned to loss) | | Loss per share | 1.55 cents | N/A (Turned to loss) | [Interim Results](index=2&type=section&id=Interim%20Results) The Group's interim performance saw revenue growth but a shift from profit to loss, primarily driven by increased impairment losses on receivables [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Interim Period](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20for%20the%20Interim%20Period) The Group recorded revenue of approximately **RMB 67.633 million** for the six months ended June 30, 2025, a 6.2% increase year-on-year, but turned to a loss attributable to owners of the Company of **RMB 8.453 million** due to significant increases in net impairment losses on receivables and other receivables Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 67,633 | 63,692 | 6.2% | | Cost of sales | (57,334) | (53,933) | 6.3% | | Gross Profit | 10,299 | 9,759 | 5.5% | | Other income and gains | 807 | 648 | 24.5% | | Selling and distribution expenses | (1,726) | (1,181) | 46.1% | | Administrative expenses | (3,316) | (2,833) | 17.1% | | Net impairment losses on receivables | (3,124) | – | N/A | | Net impairment losses on other receivables | (10,010) | – | N/A | | Finance costs | (594) | (349) | 70.2% | | (Loss) / Profit before income tax | (7,664) | 6,044 | Turned to loss | | Income tax expense | (2,736) | (2,605) | 5.0% | | (Loss) / Profit for the period | (10,400) | 3,439 | Turned to loss | | (Loss) / Profit for the period attributable to owners of the Company | (8,453) | 4,964 | Turned to loss | [(Loss) / Earnings Per Share](index=3&type=section&id=(Loss)%20%2F%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company was **RMB 1.55 cents**, compared to earnings per share of **RMB 0.91 cents** in the prior period, primarily due to the loss incurred during the period (Loss) / Earnings Per Share | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and diluted (loss) / earnings per share | (1.55) | 0.91 | - The diluted loss/earnings per share was the same as the basic loss/earnings per share for the six months ended June 30, 2025 and 2024, as there were no potential dilutive ordinary shares outstanding[33](index=33&type=chunk) [Condensed Consolidated Statement of Financial Position for the Interim Period](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20for%20the%20Interim%20Period) As of June 30, 2025, the Group's net assets were **RMB 324.536 million**, a slight decrease from December 31, 2024, with net current assets remaining at **RMB 158.342 million** and total equity at **RMB 324.536 million** Condensed Consolidated Statement of Financial Position as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total non-current assets | 189,813 | 198,349 | -4.3% | | Total current assets | 225,078 | 223,925 | 0.5% | | **Liabilities** | | | | | Total current liabilities | 66,736 | 63,831 | 4.6% | | Total non-current liabilities | 23,619 | 24,271 | -2.7% | | **Equity** | | | | | Net assets | 324,536 | 334,172 | -2.9% | | Equity attributable to owners of the Company | 246,214 | 253,903 | -3.0% | | Total equity | 324,536 | 334,172 | -2.9% | [Notes to the Condensed Consolidated Financial Statements for the Interim Period](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20for%20the%20Interim%20Period) This section provides detailed notes on the Group's financial reporting, including company information, accounting policies, estimates, and segment data [1. Company and Group Information](index=6&type=section&id=1.%20Company%20and%20Group%20Information) Championship International Holdings Limited is incorporated in the Cayman Islands, with shares listed on the Main Board of the Hong Kong Stock Exchange, primarily engaging in property leasing and the trading and production of household paper and hygiene products - The Company is incorporated in the Cayman Islands, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) - The Group is principally engaged in the leasing of plants, equipment and land for new energy businesses operated by independent third parties, and the trading of household paper and hygiene products and the production of hygiene products in Mainland China[8](index=8&type=chunk)[12](index=12&type=chunk) [2.1 Basis of Preparation](index=6&type=section&id=2.1%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared in accordance with HKAS 34 issued by the HKICPA, presented in RMB, with all amounts rounded to the nearest thousand - The condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[10](index=10&type=chunk) - The condensed consolidated interim financial information is presented in Renminbi, and all values are rounded to the nearest thousand except when otherwise indicated[10](index=10&type=chunk) [2.2 Changes in Accounting Policies](index=6&type=section&id=2.2%20Changes%20in%20Accounting%20Policies) HKAS 21 (Amendment) "Lack of Exchangeability" was adopted for the first time this period, but it had no impact on the condensed consolidated interim financial information as the currencies used by the Group are exchangeable - The Group has adopted HKAS 21 (Amendment) "Lack of Exchangeability" for the first time in the current period[11](index=11&type=chunk)[12](index=12&type=chunk) - These amendments had no impact on the condensed consolidated interim financial information as the currencies in which the Group transacts and the functional currencies of the Group entities used to translate to the Group’s presentation currency are exchangeable[13](index=13&type=chunk) [3. Estimates](index=7&type=section&id=3.%20Estimates) The preparation of interim financial information requires management's judgments, estimates, and assumptions, and actual results may differ from these estimates, with significant judgments and estimation uncertainties consistent with those applied in the prior year's consolidated financial statements - The preparation of interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense[14](index=14&type=chunk) - The significant judgements 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 consolidated financial statements for the year ended December 31, 2024[14](index=14&type=chunk) [4. Operating Segment Information](index=7&type=section&id=4.%20Operating%20Segment%20Information) The Group has two operating segments: property leasing and household paper and hygiene products, with revenue from the household paper and hygiene products segment at **RMB 61.631 million** and property leasing at **RMB 6.002 million** for the six months ended June 30, 2025 - The Group organises its business units according to their products and services and has two reportable operating segments: property leasing and household paper and hygiene products[15](index=15&type=chunk)[16](index=16&type=chunk) Operating Segment Revenue and Results | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Results (RMB thousands) | 2024 Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Property leasing | 6,002 | 7,909 | (3,924) | (2,757) | | Household paper and hygiene products | 61,631 | 55,783 | 11,675 | 10,373 | | **Total** | **67,633** | **63,692** | **7,751** | **7,616** | Other Segment Information (Depreciation and Capital Expenditure) | Indicator | 2025 Property Leasing (RMB thousands) | 2024 Property Leasing (RMB thousands) | 2025 Household Paper and Hygiene Products (RMB thousands) | 2024 Household Paper and Hygiene Products (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 9,143 | 9,227 | 13 | 1 | | Depreciation of investment properties | 961 | 1,022 | – | – | | Depreciation of right-of-use assets | – | – | 889 | – | | Capital expenditure | – | 101 | 2,470 | – | - No geographical information is presented as the Group's revenue and over **90%** of its non-current assets are located in Mainland China[20](index=20&type=chunk) Major Customer Revenue Contribution | Customer | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Customer A (Property leasing) | Not applicable | 7,909 | | Customer B (Household paper and hygiene products) | Not applicable | 6,893 | | Customer C (Household paper and hygiene products) | 7,423 | Not applicable | [5. Revenue](index=9&type=section&id=5.%20Revenue) The Group's total revenue increased by **6.2%** from approximately **RMB 63.692 million** in the prior period to approximately **RMB 67.633 million** in the current period, primarily from sales of goods (household paper and hygiene products) and rental income, all generated in Mainland China Revenue Analysis | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Rental income | 6,002 | 7,909 | | Sales of goods | 61,631 | 55,783 | | **Total Revenue** | **67,633** | **63,692** | - All revenue from contracts with customers is generated in Mainland China[23](index=23&type=chunk)[25](index=25&type=chunk) - Performance obligations for sales of goods are satisfied upon delivery, with payment typically due within **30 days** of delivery, and some sales contracts offer volume rebates[26](index=26&type=chunk) [6. Other Income and Gains](index=11&type=section&id=6.%20Other%20Income%20and%20Gains) The Group's other income and gains increased by **24.5%** from approximately **RMB 0.648 million** in the prior period to approximately **RMB 0.807 million** in the current period, mainly due to an increase in other income Other Income and Gains Analysis | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 64 | 99 | | Other interest income | 5 | – | | Subsidy income | 240 | 280 | | Other income | 498 | 269 | | **Total** | **807** | **648** | [7. (Loss) / Profit Before Income Tax](index=11&type=section&id=7.%20(Loss)%20%2F%20Profit%20Before%20Income%20Tax) The Group's loss before income tax was **RMB 7.664 million**, primarily affected by cost of inventories sold, depreciation, staff welfare expenses, and net impairment losses on receivables (Loss) / Profit Before Income Tax Deductions | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories sold | 45,619 | 44,177 | | Depreciation of property, plant and equipment | 9,156 | 9,228 | | Depreciation of investment properties | 961 | 1,022 | | Depreciation of right-of-use assets | 889 | – | | Staff welfare expenses | 3,008 | 1,581 | [8. Income Tax Expense](index=12&type=section&id=8.%20Income%20Tax%20Expense) The Group's income tax expense was approximately **RMB 2.736 million**, mainly from Mainland China, calculated at an applicable tax rate of **25%**, with no Hong Kong profits tax provision due to no taxable profit generated Income Tax Expense Analysis | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – Mainland China | 2,733 | 2,605 | | Under-provision in prior years | 3 | – | | **Income Tax Expense** | **2,736** | **2,605** | - Provision for Mainland China income tax is calculated at the applicable tax rate of **25%** on the estimated assessable profit for the reporting period, based on current laws, interpretations, and practices[30](index=30&type=chunk) [9. (Loss) / Earnings Per Share](index=12&type=section&id=9.%20(Loss)%20%2F%20Earnings%20Per%20Share) The loss attributable to owners of the Company for the period was **RMB 8.453 million**, resulting in a basic and diluted loss per share of **RMB 1.55 cents** Basis for (Loss) / Earnings Per Share Calculation | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | (Loss) / Profit for the period attributable to owners of the Company | (8,453) | 4,964 | | Weighted average number of ordinary shares | 546,092,537 | 546,092,537 | | Basic and diluted (loss) / earnings per share (RMB cents) | (1.55) | 0.91 | [10. Dividends](index=13&type=section&id=10.%20Dividends) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board did not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[34](index=34&type=chunk) [11. Trade Receivables](index=13&type=section&id=11.%20Trade%20Receivables) As of June 30, 2025, net trade receivables were **RMB 30.689 million**, a slight decrease from December 31, 2024, with impairment provision increasing to **RMB 13.250 million**, and credit terms generally set at **30 days** with regular review of overdue amounts Net Trade Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 43,939 | 41,477 | | Less: Impairment | (13,250) | (10,126) | | **Net Trade Receivables** | **30,689** | **31,351** | - The Group generally grants credit terms to customers for sales of goods and provision of processing services, with new customers mostly required to make advance payments, and credit terms typically set at **30 days**[35](index=35&type=chunk) Ageing Analysis of Trade Receivables (Net of Impairment) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 2,897 | 1,817 | | 1 to 2 months | 1,252 | 186 | | 2 to 3 months | 1,329 | 178 | | 3 to 4 months | 1,133 | 233 | | Over 4 months | 24,078 | 28,937 | | **Total** | **30,689** | **31,351** | [12. Trade Payables](index=14&type=section&id=12.%20Trade%20Payables) As of June 30, 2025, trade payables were **RMB 17.880 million**, an increase from December 31, 2024, which are non-interest bearing and typically settled within **30 days** Trade Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 17,880 | 15,662 | - Trade payables are non-interest bearing and are normally settled on **30-day** terms[37](index=37&type=chunk) Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 8,133 | 6,162 | | 1 to 2 months | 4 | 61 | | 2 to 3 months | – | 13 | | Over 3 months | 9,743 | 9,426 | | **Total** | **17,880** | **15,662** | [Business Review](index=15&type=section&id=Business%20Review) This section provides an overview of the Group's two main business segments: household paper and hygiene products, and property leasing [i. Household Paper and Hygiene Products](index=15&type=section&id=i.%20Household%20Paper%20and%20Hygiene%20Products) The Group's household paper and hygiene products business in China serves over **400 corporate clients** with a sales network across multiple provinces and cities, with the market projected to reach approximately **29 million tons** by 2035, and revenue for this segment was approximately **RMB 61.6 million**, a year-on-year increase of approximately **10.5%** - The Group’s household paper and hygiene products segment is engaged in the trading of household paper and hygiene products and the production of hygiene products in China, with over **400 corporate customers** and a sales network covering provinces such as Heilongjiang, Jilin, Liaoning, Hebei, Henan, Shandong, Shaanxi, Jiangsu, and Anhui, as well as Beijing and Tianjin[39](index=39&type=chunk) - The China household paper and hygiene products market is projected to reach a market size of approximately **29 million tons** by 2035, expanding at a compound annual growth rate of **4.5%** in value to approximately **US$74 billion** by 2035[39](index=39&type=chunk) - During the reporting period, revenue from this segment was approximately **RMB 61.6 million**, representing an increase of approximately **10.5%** compared to the corresponding period in 2024[40](index=40&type=chunk) [ii. Property Leasing](index=15&type=section&id=ii.%20Property%20Leasing) The Group's property leasing segment primarily leases plants, equipment, and land for new energy businesses operated by independent third parties, generating approximately **RMB 6 million** in revenue during the period - The Group’s property leasing segment leases plants, equipment and land for new energy businesses operated by independent third parties[40](index=40&type=chunk) - During the reporting period, revenue from this segment was approximately **RMB 6 million**[40](index=40&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance, including revenue, gross profit, expenses, and profit/loss attributable to owners of the Company [Revenue](index=16&type=section&id=Revenue_Financial%20Review) Total revenue increased by approximately **6.2%** to **RMB 67.6 million**, primarily due to increased sales of household paper and hygiene products, which saw a **10.5%** revenue growth, while property leasing revenue decreased by **24.1%** - For the six months ended June 30, 2025, total revenue was approximately **RMB 67.6 million**, an increase of approximately **RMB 3.9 million (6.2%)** compared to total revenue of approximately **RMB 63.7 million** for the corresponding period in 2024, primarily due to increased sales volume of household paper and hygiene products[41](index=41&type=chunk) Revenue Breakdown and Change | Business | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Property leasing | 6,002 | 7,909 | (24.1%) | | Household paper and hygiene products | 61,631 | 55,783 | 10.5% | [Gross Profit and Gross Margin](index=16&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by **5.5%** from **RMB 9.8 million** to **RMB 10.3 million**, with a gross margin of approximately **15.2%**, similar to **15.3%** in the prior period - The Group’s gross profit increased from approximately **RMB 9.8 million** for the six months ended June 30, 2024 to approximately **RMB 10.3 million** for the six months ended June 30, 2025[45](index=45&type=chunk) - For the six months ended June 30, 2025, the gross profit margin was approximately **15.2%**, which was similar to approximately **15.3%** for the six months ended June 30, 2024[45](index=45&type=chunk) [Other Income and Gains](index=16&type=section&id=Other%20Income%20and%20Gains_Financial%20Review) Other income and gains increased by **24.5%** to approximately **RMB 0.8 million**, primarily due to an increase in other income - Other income and gains increased by **24.5%** from approximately **RMB 0.6 million** for the six months ended June 30, 2024 to approximately **RMB 0.8 million** for the six months ended June 30, 2025, primarily due to an increase in other income[46](index=46&type=chunk) [Selling and Distribution Expenses](index=17&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by approximately **46.1%** to approximately **RMB 1.7 million**, primarily due to increased transportation costs - The Group’s selling and distribution expenses increased by approximately **46.1%** from approximately **RMB 1.2 million** for the six months ended June 30, 2024 to approximately **RMB 1.7 million** for the six months ended June 30, 2025, primarily due to an increase in transportation costs[47](index=47&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses increased to approximately **RMB 3.3 million**, primarily due to increased staff costs - Administrative expenses increased from approximately **RMB 2.8 million** for the six months ended June 30, 2024 to approximately **RMB 3.3 million** for the six months ended June 30, 2025, primarily due to an increase in staff costs during the reporting period[48](index=48&type=chunk) [Finance Costs](index=17&type=section&id=Finance%20Costs) Finance costs increased to approximately **RMB 0.6 million**, primarily due to additional borrowings and an increase in borrowing interest rates - Finance costs for the reporting period were approximately **RMB 0.6 million** (for the six months ended June 30, 2024: **RMB 0.3 million**), primarily due to additional borrowings and an increase in borrowing interest rates[49](index=49&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense_Financial%20Review) Income tax expense was approximately **RMB 2.7 million**, similar to approximately **RMB 2.6 million** in the prior period - For the six months ended June 30, 2025, the Group’s income tax expense was approximately **RMB 2.7 million**, similar to approximately **RMB 2.6 million** for the corresponding period in 2024[50](index=50&type=chunk) [Loss / Profit Attributable to Owners of the Company](index=17&type=section&id=Loss%20%2F%20Profit%20Attributable%20to%20Owners%20of%20the%20Company) The Group recorded a loss attributable to owners of the Company of approximately **RMB 8.5 million** for the period, compared to a profit of approximately **RMB 5 million** in the prior period - For the six months ended June 30, 2025, the Group recorded a loss attributable to owners of the Company of approximately **RMB 8.5 million**, compared to a profit attributable to owners of the Company of approximately **RMB 5 million** for the six months ended June 30, 2024[51](index=51&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) This section details the Group's liquidity position, financial resources, capital structure, and risk management policies [Net Current Assets](index=17&type=section&id=Net%20Current%20Assets) As of June 30, 2025, net current assets were approximately **RMB 158.3 million**, a slight decrease from **RMB 160.1 million** as of December 31, 2024 - The Group recorded net current assets of approximately **RMB 158.3 million** as of June 30, 2025, compared to approximately **RMB 160.1 million** as of December 31, 2024[52](index=52&type=chunk) [Borrowings and Gearing Ratio](index=18&type=section&id=Borrowings%20and%20Gearing%20Ratio) Total borrowings increased to approximately **RMB 26.2 million**, and the gearing ratio increased from **6.6%** to **8.1%**, primarily due to additional loans - The Group’s total borrowings were approximately **RMB 26.2 million** as of June 30, 2025 (as of December 31, 2024: **RMB 21.9 million**)[53](index=53&type=chunk) - The Group’s gearing ratio increased from approximately **6.6%** as of December 31, 2024 to approximately **8.1%** as of June 30, 2025, primarily due to additional loans of approximately **RMB 4.6 million**[53](index=53&type=chunk) [Capital Expenditure](index=18&type=section&id=Capital%20Expenditure) Total capital expenditure for the period was approximately **RMB 2.5 million**, primarily for prepayments and additions to property, plant, and equipment - For the six months ended June 30, 2025, the Group’s total capital expenditure was approximately **RMB 2.5 million**, primarily for prepayments and additions to property, plant and equipment (for the six months ended June 30, 2024: **RMB 0.1 million**)[54](index=54&type=chunk) [Treasury Policy](index=18&type=section&id=Treasury%20Policy) The Group manages its treasury and funding policies prudently, focusing on risk management and transactions directly related to its core business - The Group manages its treasury and funding policies prudently, with an emphasis on risk management and transactions directly related to the Group’s core business[55](index=55&type=chunk) [Capital Structure](index=18&type=section&id=Capital%20Structure) The Group's capital structure comprises equity attributable to owners of the Company, with no change in the number of issued shares during the period - The Group’s capital structure comprises equity attributable to owners of the Company, which includes issued share capital and reserves[56](index=56&type=chunk) - There was no change in the number of issued shares of the Company during the six months ended June 30, 2025[56](index=56&type=chunk) [Pledge of Assets](index=18&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets (as of December 31, 2024: nil)[57](index=57&type=chunk) [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (as of December 31, 2024: nil)[58](index=58&type=chunk) [Foreign Exchange Risk](index=19&type=section&id=Foreign%20Exchange%20Risk) The Group's transactions are primarily conducted in RMB, with foreign currency risk mainly related to bank balances and cash denominated in HKD, and no derivative financial instruments were used to hedge foreign currency fluctuations during the period - The Group’s transactions are principally conducted in Renminbi[59](index=59&type=chunk) - The functional currency of certain subsidiaries of the Group and the major receivables and payables are denominated in Renminbi[59](index=59&type=chunk) - The Group’s foreign currency risk primarily relates to certain bank balances and cash and other payables denominated in Hong Kong dollars[59](index=59&type=chunk) - For the six months ended June 30, 2025, the Group did not use any derivative financial instruments to hedge against fluctuations in foreign currency transactions and other financial assets and liabilities arising in the ordinary course of business[59](index=59&type=chunk) [Human Resources and Remuneration](index=19&type=section&id=Human%20Resources%20and%20Remuneration) As of June 30, 2025, the Group employed **45 staff**, with total staff costs of approximately **RMB 3 million**, an increase from the prior period, mainly due to an increase in headcount and salary adjustments - As of June 30, 2025, the Group employed a total of **45 staff** (as of December 31, 2024: **41 staff**)[60](index=60&type=chunk) - Total staff costs incurred during the same period were approximately **RMB 3 million** (for the six months ended June 30, 2024: approximately **RMB 1.6 million**)[60](index=60&type=chunk) - The increase in the Group’s staff costs was primarily due to an increase in the number of staff and salary adjustments[60](index=60&type=chunk) [Interim Dividends](index=19&type=section&id=Interim%20Dividends_Liquidity%20and%20Financial%20Resources) The Board proposed not to declare any interim dividend for the six months ended June 30, 2025 - The Board proposed not to declare any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[61](index=61&type=chunk) [Use of Net Proceeds from Listing](index=19&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) Net proceeds from the listing, approximately **RMB 37.6 million**, have been applied as disclosed in the prospectus, with unutilized proceeds of approximately **RMB 19 million** as of June 30, 2025, earmarked for investment in production workshops, equipment upgrades, and technological development - The Company’s shares were listed on the Stock Exchange on November 25, 2016[62](index=62&type=chunk) - The net proceeds from the listing (after deducting underwriting commissions and related expenses) of approximately **HKD 42.2 million** (equivalent to approximately **RMB 37.6 million**) have been applied in the manner disclosed in the Company’s prospectus dated November 15, 2016[62](index=62&type=chunk) Details of Use of Net Proceeds from Listing | Use | Net proceeds as stated in prospectus (RMB thousands) | Approximate percentage of total actual net proceeds | Amount utilized as of June 30, 2025 (RMB thousands) | Balance as of June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Purchase and upgrade of production equipment and expansion and maintenance of production base | 23,303 | 62% | 8,788 | 14,515 | | Expansion and upgrade of non-production base | 5,638 | 15% | 1,334 | 4,304 | | Business development expenses | 4,886 | 13% | 4,886 | – | | Working capital and general corporate purposes | 3,758 | 10% | 3,758 | – | | **Total** | **37,585** | **100%** | **18,766** | **18,819** | - As of June 30, 2025, the unutilized proceeds of approximately **HKD 21 million** (equivalent to approximately **RMB 19 million**) will be used for investment in production workshops, equipment upgrades, and technological development[65](index=65&type=chunk) [Future Plans for Material Investments or Capital Assets](index=20&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, there were no other plans for material investments or capital assets beyond those disclosed in the prospectus or this announcement - As of June 30, 2025, there were no other plans for material investments or capital assets other than those disclosed in the prospectus or this announcement[66](index=66&type=chunk) [Future Outlook](index=21&type=section&id=Future%20Outlook) The Group maintains cautious optimism regarding China's industrial and manufacturing operations, anticipating an economic growth rate of approximately **5%** in 2025, driven by government policies aimed at employment stability and consumer confidence - The Group maintains cautious optimism regarding China’s industrial and manufacturing operations, anticipating an economic growth rate of approximately **5%** in 2025[69](index=69&type=chunk) - The government prioritizes employment stability, aiming to create approximately **12 million** new urban jobs in 2025 and keep the urban surveyed unemployment rate around **5.5%**, which is expected to strengthen employment security, boost consumer confidence, and drive private consumption[69](index=69&type=chunk) - The Group will continue to pursue strategic initiatives, including exploring new markets and developing new customers, implementing cost optimization measures, investing in new production facilities and equipment to enhance operational efficiency, and focusing on product innovation, particularly in environmentally friendly and sustainable household paper products[70](index=70&type=chunk) [Share Option Scheme](index=21&type=section&id=Share%20Option%20Scheme) The share option scheme was conditionally adopted by written resolution on November 3, 2016, with terms complying with Chapter 17 of the HKEX Listing Rules, and no share options have been granted, exercised, cancelled, or lapsed under the scheme as of the announcement date - The Share Option Scheme was conditionally adopted by way of written resolutions on November 3, 2016, and its terms comply with the provisions of Chapter 17 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[71](index=71&type=chunk) - As of the date of this announcement, no share options have been granted, agreed to be granted, exercised, cancelled or lapsed under the scheme[71](index=71&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) During the reporting period, the Company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules - During the reporting period, the Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[72](index=72&type=chunk) [Standard Code for Securities Transactions by Directors](index=22&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' securities transactions, with terms no less exacting than those in Appendix C3 of the Listing Rules, and all directors confirmed full compliance during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct regarding securities transactions by the Directors, the terms of which are no less exacting than those set out in Appendix C3 to the Listing Rules[73](index=73&type=chunk) - Specific enquiry has been made to all Directors, and each of them has confirmed that they have fully complied with all required standards set out in the Model Code during the reporting period[73](index=73&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities[74](index=74&type=chunk) [Material Events After Reporting Period](index=22&type=section&id=Material%20Events%20After%20Reporting%20Period) Other than as disclosed in this announcement, no material events affecting the Group occurred after the end of the financial period - Save as disclosed in this announcement, there were no material events affecting the Group after the end of the financial period[75](index=75&type=chunk) [Audit Committee](index=22&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the interim results, confirming their preparation in accordance with applicable accounting standards and regulations, and discussed internal controls and financial reporting procedures with management - The Company’s Audit Committee comprises three independent non-executive Directors, namely Mr. Qian Zhihao (Chairman), Mr. Chen Hua and Mr. Zhao Zhendong[76](index=76&type=chunk) - The Audit Committee has reviewed the interim results and is of the opinion that the interim results were prepared in accordance with applicable accounting standards and requirements, and has discussed internal controls and financial reporting procedures with the Group’s management[76](index=76&type=chunk) [Publication of Interim Results and Interim Report](index=22&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement is published on the Company's website www.championshipintl.com and the HKEX website www.hkexnews.hk, with the interim report for the six months ended June 30, 2025, expected to be dispatched to shareholders and available on these websites by September 30, 2025 - This interim results announcement is published on the Company’s website www.championshipintl.com and the HKEX website www.hkexnews.hk[77](index=77&type=chunk) - The Company’s interim report for the six months ended June 30, 2025 is expected to be despatched to the Company’s shareholders and available on the above websites on or before Tuesday, September 30, 2025[77](index=77&type=chunk) [Acknowledgement](index=23&type=section&id=Acknowledgement) The Board extends its sincere gratitude for the efforts and dedication of the Group's management and all staff, and for the strong support from the Company's shareholders, business associates, and other professionals during the reporting period - The Board wishes to express its sincere gratitude for the efforts and dedication of the Group’s management and all staff, and for the strong support from the Company’s shareholders, business associates and other professionals during the reporting period[78](index=78&type=chunk) [By Order of the Board](index=23&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Chen Chen, Executive Director of Championship International Holdings Limited, on behalf of the Board, which comprises five executive directors and three independent non-executive directors as of the announcement date - This announcement is issued by Mr. Chen Chen, Executive Director of Championship International Holdings Limited, on behalf of the Board[79](index=79&type=chunk) - As of the date of this announcement, the Board comprises Mr. Chen Chen, Mr. Chen Xiaolong, Mr. Hu Enfeng, Mr. Li Aiguo and Ms. Luo Yanhong as executive Directors, and Mr. Chen Hua, Mr. Zhao Zhendong and Mr. Qian Zhihao as independent non-executive Directors[79](index=79&type=chunk)

[Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This chapter presents the condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | H1 2025 (Thousand SGD) | H1 2024 (Thousand SGD) | | :--- | :--- | :--- | | Revenue | 14,529 | 25,937 | | Cost of sales and services | (12,447) | (18,515) | | Gross profit | 2,082 | 7,422 | | Net other income, gains and losses | 200 | 873 | | Selling expenses | (256) | (214) | | Administrative expenses | (12,505) | (13,675) | | Reversal of provision for expected credit losses on trade receivables | 106 | – | | Finance costs | (349) | (347) | | Loss before tax | (10,722) | (5,941) | | Income tax expense | (78) | (12) | | Loss for the period | (10,800) | (5,953) | | Total comprehensive expense for the period | (10,274) | (6,246) | | Loss per share (basic and diluted) | (0.20) SGD cents | (0.12) SGD cents | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This chapter provides the condensed consolidated statement of financial position as of June 30, 2025 Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (Thousand SGD) | December 31, 2024 (Thousand SGD) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 26,403 | 28,703 | | Current assets | 23,748 | 30,164 | | **Total assets** | **50,151** | **58,867** | | **Equity** | | | | Equity attributable to owners of the Company | 27,356 | 31,806 | | Non-controlling interests | 419 | 973 | | **Total equity** | **27,775** | **32,779** | | **Liabilities** | | | | Non-current liabilities | 2,129 | 2,731 | | Current liabilities | 20,247 | 23,357 | | **Total liabilities** | **22,376** | **26,088** | | **Total equity and liabilities** | **50,151** | **58,867** | | Net current assets | 3,501 | 6,807 | | Net assets | 27,775 | 32,779 | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This chapter outlines the basis of preparation, accounting policies, business activities, revenue segmentation, other income, tax expenses, loss for the period, dividend policy, earnings per share calculation, investment property changes, and aging analysis of trade receivables and payables [1. General Information](index=5&type=section&id=1.%20General%20Information) The company is incorporated in the Cayman Islands, with main operations in Shanghai, Hong Kong, and Singapore, focusing on investment holding and various services - The Company is incorporated in the Cayman Islands, with its headquarters and principal places of business located in Shanghai, China, Hong Kong, and Singapore[9](index=9&type=chunk) - The Company is an investment holding company, and its operating subsidiaries primarily provide minimally invasive surgical solutions, medical products and related services, labor dispatch and ancillary services, dormitory services, information technology services, and construction ancillary services[9](index=9&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) These condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules, consistent with prior annual financial statements - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and the applicable disclosure requirements of the Rules Governing the Listing of Securities on the Stock Exchange[10](index=10&type=chunk) - The accounting policies and methods of computation used in the preparation of these statements are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[10](index=10&type=chunk) [3. Application of New and Revised International Financial Reporting Standards](index=5&type=section&id=3.%20Application%20of%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) The Group adopted new and revised IFRSs effective January 1, 2025, with no significant impact on accounting policies or financial statement presentation - The Group has adopted all new and revised International Financial Reporting Standards effective for accounting periods beginning on January 1, 2025[11](index=11&type=chunk) - The adoption of these standards has not resulted in significant changes to the Group's accounting policies, presentation of consolidated financial statements, or reported amounts for the current and prior periods[11](index=11&type=chunk) [4. Revenue](index=6&type=section&id=4.%20Revenue) The Group's revenue primarily derives from minimally invasive surgical solutions in China and various services in Singapore, with a significant 44% decrease in H1 2025 - The Group's revenue primarily derives from minimally invasive surgical solutions and medical product services in China, and labor dispatch, dormitory, information technology, and construction ancillary services in Singapore[12](index=12&type=chunk) Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30) | Item | 2025 (Thousand SGD) | 2024 (Thousand SGD) | | :--- | :--- | :--- | | **Geographical markets** | | | | －China | 6,333 | 12,432 | | －Singapore | 6,818 | 7,894 | | Revenue from contracts with customers | 13,151 | 20,326 | | Rental income from provision of dormitory services | 1,378 | 5,611 | | **Total revenue** | **14,529** | **25,937** | | **Timing of revenue recognition** | | | | At a point in time (products and minimally invasive surgical solutions) | 6,333 | 12,302 | | Over time (services) | 6,818 | 8,024 | | Revenue from contracts with customers | 13,151 | 20,326 | | Rental income from provision of dormitory services | 1,378 | 5,611 | | **Total revenue** | **14,529** | **25,937** | Revenue from Major Customers (For the six months ended June 30) | Customer | 2025 (Thousand SGD) | 2024 (Thousand SGD) | | :--- | :--- | :--- | | Customer A (minimally invasive surgical solutions and medical product services) | 3,310 | 11,806 | [5. Net Other Income, Gains and Losses](index=7&type=section&id=5.%20Net%20Other%20Income%2C%20Gains%20and%20Losses) Net other income, gains, and losses for H1 2025 significantly decreased to 200 thousand SGD, primarily due to exchange losses Net Other Income, Gains and Losses (For the six months ended June 30) | Item | 2025 (Thousand SGD) | 2024 (Thousand SGD) | | :--- | :--- | :--- | | Government grants | 78 | 34 | | Dividend income from listed equity investments | 33 | 45 | | Interest income | 3 | 11 | | Forfeiture of customer deposits | – | 5 | | Work injury/worker compensation claims | 71 | 50 | | Sub-lease income | 226 | 183 | | Net fair value change of investments at fair value through profit or loss | 848 | 32 | | (Loss)/gain on disposal of investments at fair value through profit or loss | (370) | 7 | | Net exchange (loss)/gain | (826) | 449 | | Others | 137 | 57 | | **Total** | **200** | **873** | - Net other income, gains and losses decreased from **873 thousand SGD** in H1 2024 to **200 thousand SGD** in H1 2025, primarily due to exchange losses[16](index=16&type=chunk) [6. Income Tax Expense](index=8&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense increased to 78 thousand SGD in H1 2025, mainly due to higher Singapore corporate income tax provision Income Tax Expense (For the six months ended June 30) | Item | 2025 (Thousand SGD) | 2024 (Thousand SGD) | | :--- | :--- | :--- | | Current tax | | | | －China corporate income tax (provision for the period) | – | 12 | | －Singapore corporate income tax (provision for the period) | 31 | – | | －Under-provision in prior years | 35 | – | | Total current tax | 66 | 12 | | Deferred tax | 12 | – | | **Total income tax expense** | **78** | **12** | - China business income tax provision is calculated at a tax rate of **25%**, while Singapore corporate income tax provision is calculated at a tax rate of **17%**[17](index=17&type=chunk) [7. Loss for the Period](index=9&type=section&id=7.%20Loss%20for%20the%20Period) Loss for the period expanded to 10.8 million SGD in H1 2025, influenced by depreciation, cost of inventories sold, and staff costs Loss for the Period Deducted Items (For the six months ended June 30) | Item | 2025 (Thousand SGD) | 2024 (Thousand SGD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 220 | 55 | | Depreciation of right-of-use assets | 464 | 1,531 | | Depreciation of investment properties | 1,425 | 1,103 | | Direct operating expenses from investment properties generating rental income | 486 | 1,363 | | Research and development expenses | 415 | 245 | | Cost of inventories sold | 5,999 | 11,916 | | Staff costs (including directors' emoluments) | 11,826 | 13,645 | [8. Dividends](index=9&type=section&id=8.%20Dividends) The company neither paid nor declared dividends for the six months ended June 30, 2025 and 2024 - The Company neither paid nor declared dividends for the six months ended June 30, 2025 and 2024[19](index=19&type=chunk) [9. Loss Per Share](index=9&type=section&id=9.%20Loss%20Per%20Share) Basic and diluted loss per share expanded to 0.20 Singapore cents in H1 2025, primarily due to increased loss for the period Loss Per Share Calculation (For the six months ended June 30) | Item | 2025 (Thousand SGD) | 2024 (Thousand SGD) | | :--- | :--- | :--- | | Loss used in calculating basic and diluted loss per share | (10,253) | (6,043) | | Weighted average number of ordinary shares (Thousand Shares) | 5,170,000 | 5,170,000 | | Basic and diluted loss per share (SGD cents) | (0.20) | (0.12) | - Basic and diluted loss per share expanded from **0.12 SGD cents** in H1 2024 to **0.20 SGD cents** in H1 2025[6](index=6&type=chunk)[20](index=20&type=chunk) [10. Investment Properties](index=10&type=section&id=10.%20Investment%20Properties) Investment property acquisitions significantly decreased to 218 thousand SGD in H1 2025 compared to H1 2024 - Investment property acquisitions in H1 2025 amounted to **218 thousand SGD**, a significant decrease from **10.515 million SGD** in H1 2024[21](index=21&type=chunk) [11. Trade Receivables](index=10&type=section&id=11.%20Trade%20Receivables) Total trade receivables decreased to 4.316 million SGD as of June 30, 2025, though the proportion overdue by over 90 days increased Aging Analysis of Trade Receivables (Net of provision for impairment losses) | Overdue Date | June 30, 2025 (Thousand SGD) | December 31, 2024 (Thousand SGD) | | :--- | :--- | :--- | | Not overdue | 1,334 | 2,460 | | 1 to 30 days | 662 | 1,944 | | 31 to 60 days | 111 | 131 | | 61 to 90 days | 1,963 | 16 | | Over 90 days | 246 | 305 | | **Total** | **4,316** | **4,856** | [12. Trade Payables](index=10&type=section&id=12.%20Trade%20Payables) Total trade payables significantly decreased to 1.693 million SGD as of June 30, 2025, from 5.129 million SGD at December 31, 2024 Aging Analysis of Trade Payables | Invoice Date | June 30, 2025 (Thousand SGD) | December 31, 2024 (Thousand SGD) | | :--- | :--- | :--- | | Within 30 days | 584 | 1,872 | | 31 to 90 days | 550 | 3,134 | | 91 to 365 days | 446 | 92 | | Over 365 days | 113 | 31 | | **Total** | **1,693** | **5,129** | [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) This chapter reviews the Group's business and outlook, emphasizing the shift to China's minimally invasive surgical solutions, and analyzes financial performance, liquidity, financing, and market risk management [Business Review and Outlook](index=11&type=section&id=Business%20Review%20and%20Outlook) The Group is shifting its business focus from Singapore's labor dispatch and dormitory services to China's minimally invasive surgical solutions, anticipating challenges in Singapore operations - The Group is relocating its headquarters and principal place of business to Shanghai, China, to capitalize on the strong growth momentum in minimally invasive surgical solutions, medical products, and related services in mainland China[24](index=24&type=chunk) - Singapore's economic growth is projected to slow to **1.0%–3.0%** in 2025, with the construction sector continuing to face challenges, leading to a **75.4%** decrease in the Group's Singapore dormitory services revenue[24](index=24&type=chunk)[25](index=25&type=chunk) - The market size for minimally invasive surgical instruments in China is projected to reach **USD 1.71 billion** in 2025 and **USD 2.68 billion** by 2030, with a CAGR of **9.45%**, prompting the Group to enhance development capabilities, expand distribution networks, develop new products, and integrate resources to strengthen its market position[25](index=25&type=chunk)[26](index=26&type=chunk) - The Company will leverage its strengths in China and Hong Kong to expand its minimally invasive surgical solutions and medical products and related services business, while prudently considering a gradual reduction in certain Singapore operations and actively seeking other business opportunities in new industries[27](index=27&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) In H1 2025, the Group experienced significant declines in revenue and gross profit, leading to an expanded loss for the period, while maintaining sound liquidity and detailing fund utilization [Revenue](index=13&type=section&id=Financial%20Review-Revenue) Total revenue decreased by 44% to 14.5 million SGD in H1 2025, mainly due to product portfolio adjustments in China and reduced dormitory service revenue in Singapore Revenue Breakdown (For the six months ended June 30) | Service Category | H1 2025 (Thousand SGD) | H1 2024 (Thousand SGD) | Increase/(Decrease) % | | :--- | :--- | :--- | :--- | | Minimally invasive surgical solutions and medical products and related services fees | 6,333 | 12,302 | (48.5) | | Labor dispatch and ancillary services | 6,451 | 7,634 | (15.5) | | Dormitory services | 1,378 | 5,611 | (75.4) | | Construction ancillary services | 139 | 140 | (0.7) | | Information technology services | 228 | 250 | (8.8) | | **Total** | **14,529** | **25,937** | **(44.0)** | - Revenue from minimally invasive surgical solutions and medical products and related services fees decreased by **48.5%**, primarily due to challenging economic conditions, escalating global trade conflicts, and product portfolio adjustments[29](index=29&type=chunk) - Dormitory services revenue decreased by **75.4%**, mainly due to lower market demand and the cessation of operations at one of its dormitories since October 2024[30](index=30&type=chunk) [Gross Profit and Gross Profit Margin](index=13&type=section&id=Financial%20Review-Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit decreased to 2.1 million SGD in H1 2025, with the gross profit margin declining from 28.6% to 14.3% Gross Profit and Gross Profit Margin (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross profit (Thousand SGD) | 2,082 | 7,422 | | Gross profit margin | 14.3% | 28.6% | [Net Other Income, Gains and Losses](index=14&type=section&id=Financial%20Review-Net%20Other%20Income%2C%20Gains%20and%20Losses) Net other income and gains decreased to 0.2 million SGD in H1 2025, primarily attributable to exchange losses - Net other income and gains decreased to **0.2 million SGD**, primarily due to exchange losses[32](index=32&type=chunk) [Administrative Expenses](index=14&type=section&id=Financial%20Review-Administrative%20Expenses) Administrative expenses decreased to 12.5 million SGD in H1 2025, mainly due to a reduction in equity-settled share-based payments related to share options - Administrative expenses decreased by **1.2 million SGD** to **12.5 million SGD**, primarily due to a reduction in equity-settled share-based payments[33](index=33&type=chunk) [Income Tax Expense](index=14&type=section&id=Financial%20Review-Income%20Tax%20Expense) Income tax expense slightly increased to 78 thousand SGD in H1 2025 from 12 thousand SGD in H1 2024 - Income tax expense slightly increased to **78 thousand SGD**[34](index=34&type=chunk) [Loss for the Period](index=14&type=section&id=Financial%20Review-Loss%20for%20the%20Period) The Group recorded a loss for the period of 10.8 million SGD in H1 2025, primarily due to decreased revenue and gross profit margin - Loss for the period expanded to **10.8 million SGD**, primarily due to a decrease in both revenue and gross profit margin[35](index=35&type=chunk) [Dividends](index=14&type=section&id=Financial%20Review-Dividends) The Board of Directors resolved not to declare an interim dividend for the period - The Board of Directors resolved not to declare an interim dividend for the period[36](index=36&type=chunk) [Liquidity, Financial Resources and Gearing Ratio](index=14&type=section&id=Financial%20Review-Liquidity%2C%20Financial%20Resources%20and%20Gearing%20Ratio) The Group generally meets working capital needs through internal funds, maintaining a sound financial position, with the Board closely monitoring liquidity - The Group generally meets its working capital needs through internal funds and maintains a sound financial position[37](index=37&type=chunk) - The Board closely monitors the Group's liquidity position to ensure that its liquidity structure of assets, liabilities, and other commitments can meet funding requirements at all times[38](index=38&type=chunk) [Use of Proceeds from Listing](index=15&type=section&id=Financial%20Review-Use%20of%20Proceeds%20from%20Listing) Net proceeds of 82.6 million HKD (14.1 million SGD) from the listing have been largely utilized for dormitory acquisitions, securities investment, and capital injection into Jinhai Medical Use of Net Proceeds from Listing (As of June 30, 2025) | Intended Use | Original Allocation (Million HKD) | Amount Utilized as of June 30, 2025 (Million HKD) | Unutilized Amount as of June 30, 2025 (Million HKD) | Expected Timeline for Full Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Funding for additional foreign worker dormitories | 77.1 | 46.6 | – | Not applicable | | Funding for additional 10 trucks | 5.5 | 1.8 | 1.9 | Before end of December 2025 | | Funding for investment in securities | – | 10.0 | – | Not applicable | | Loan repayment | – | Not applicable | Not applicable | Not applicable | | Capital injection into Jinhai Medical | – | 20.5 | – | Not applicable | | **Total** | **82.6** | **78.9** | **1.9** | | - The selection of new foreign worker dormitory sites was delayed due to the pandemic, leading to a reallocation of some funds for open market acquisition of listed securities[39](index=39&type=chunk) - The decline in the labor dispatch and ancillary services business reduced the demand for additional trucks, delaying the utilization of related net proceeds until before the end of December 2025[42](index=42&type=chunk) [Use of Proceeds from Placing](index=16&type=section&id=Financial%20Review-Use%20of%20Proceeds%20from%20Placing) Net proceeds of 99 million HKD from the October 2023 placing have been mostly used for healthcare business expansion and general working capital, with 8.0 million HKD remaining for labor dispatch services Use of Net Proceeds from Placing (As of June 30, 2025) | Intended Use | Original Allocation (Million HKD) | Amount Utilized as of June 30, 2025 (Million HKD) | Unutilized Amount as of June 30, 2025 (Million HKD) | Expected Timeline for Full Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | For expansion of healthcare industry business | 69.0 | 69.0 | – | Not applicable | | For expansion of labor dispatch and ancillary services business | 15.0 | 7.0 | 8.0 | Before end of December 2025 | | For general working capital of the Group | 15.0 | 15.0 | – | Not applicable | | **Total** | **99.0** | **91.0** | **8.0** | | - The Group is preparing to expand its labor dispatch and ancillary services business in China in 2025, with the remaining net proceeds expected to be fully utilized in 2025[43](index=43&type=chunk) [Cash and Cash Equivalents](index=17&type=section&id=Financial%20Review-Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents totaled 4.9 million SGD, primarily held in major licensed banks in Singapore, China, and Hong Kong - As of June 30, 2025, cash and cash equivalents amounted to **4.9 million SGD**[44](index=44&type=chunk) - Cash is primarily denominated in **SGD (44.3%)**, **RMB (49.1%)**, and **HKD (6.6%)**[44](index=44&type=chunk) [Borrowings and Gearing Ratio](index=17&type=section&id=Financial%20Review-Borrowings%20and%20Gearing%20Ratio) Total current and non-current borrowings and lease liabilities slightly increased to 14.7 million SGD, with the gearing ratio rising from 44.3% to 52.8% Borrowings and Gearing Ratio | Indicator | June 30, 2025 (Thousand SGD) | December 31, 2024 (Thousand SGD) | | :--- | :--- | :--- | | Total borrowings and lease liabilities | 14,670 | 14,522 | | Gearing ratio | 52.8% | 44.3% | - The gearing ratio increased from **44.3%** as of December 31, 2024, to **52.8%** as of June 30, 2025[45](index=45&type=chunk) [Foreign Exchange Risk](index=17&type=section&id=Financial%20Review-Foreign%20Exchange%20Risk) The Group faces foreign exchange risk due to transactions primarily in RMB, functional currency in SGD, and HKD-denominated proceeds, resulting in a net exchange loss in H1 2025 - The Group primarily transacts in RMB, with its functional currency being SGD, and holds a significant portion of its listing proceeds in HKD, exposing it to foreign currency risk[46](index=46&type=chunk) - In H1 2025, overseas operations generated a currency translation gain of **0.5 million SGD**, but a net exchange loss of **0.8 million SGD** was recorded[46](index=46&type=chunk) [Pledge of the Group's Assets and Contingent Liabilities](index=17&type=section&id=Financial%20Review-Pledge%20of%20the%20Group%27s%20Assets%20and%20Contingent%20Liabilities) Certain lease liabilities and bank borrowings are secured by pledged lease assets, with no significant contingent liabilities during the period - Certain lease liabilities and bank borrowings are secured by pledged lease assets[47](index=47&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[47](index=47&type=chunk) [Capital Expenditure and Capital Commitments](index=17&type=section&id=Financial%20Review-Capital%20Expenditure%20and%20Capital%20Commitments) Capital expenditure significantly decreased to 23 thousand SGD in H1 2025, primarily for vehicles, computers, and equipment, with no capital commitments at period-end - Capital expenditure in H1 2025 amounted to **23 thousand SGD**, a significant decrease from **0.3 million SGD** in H1 2024[48](index=48&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no capital commitments[49](index=49&type=chunk) [Material Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=18&type=section&id=Financial%20Review-Material%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The Group invested in Shanghai Pailiya, expecting a 55% stake, and holds listed equity investments valued at 2.1 million SGD for dividend and fair value gains - Jinhai Shanghai injected up to **RMB 16,500,000** into Shanghai Pailiya, expecting to hold a **55%** stake, and Shanghai Pailiya will be accounted for as a subsidiary of the Company[50](index=50&type=chunk) - As of June 30, 2025, the Group held listed equity investments with a fair value of **2.1 million SGD**, aiming to generate returns through dividend income and fair value gains[51](index=51&type=chunk) [Off-Balance Sheet Transactions](index=18&type=section&id=Financial%20Review-Off-Balance%20Sheet%20Transactions) As of June 30, 2025, the Group had not entered into any significant off-balance sheet transactions - As of June 30, 2025, the Group had not entered into any significant off-balance sheet transactions[52](index=52&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=Financial%20Review-Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 458 employees, with remuneration based on qualifications and position, including sales incentive plans, and staff costs of 11.8 million SGD in H1 2025 Employee Count and Staff Costs | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | 458 | 488 | | Staff costs (H1 2025) | 11.8 Million SGD | 13.6 Million SGD (H1 2024) | - The Group determines employee salaries based on qualifications, position, and experience, and has a sales incentive plan in place[54](index=54&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Financial%20Review-Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Group faces interest rate, foreign currency, credit, liquidity, fair value, and equity price risks, managed through monitoring and appropriate measures [Interest Rate Risk](index=19&type=section&id=Financial%20Review-Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk-Interest%20Rate%20Risk) The Group is exposed to cash flow interest rate risk from bank balances and fair value interest rate risk from fixed-rate finance lease obligations, with management monitoring but no hedging policy - The Group is exposed to cash flow interest rate risk from floating-rate bank balances and fair value interest rate risk from fixed-rate finance lease obligations[55](index=55&type=chunk) - Management monitors interest rate risk but currently has no interest rate hedging policy[55](index=55&type=chunk) [Foreign Currency Risk](index=19&type=section&id=Financial%20Review-Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk-Foreign%20Currency%20Risk) The Group faces foreign currency risk from USD, RMB, and HKD denominated balances, equity investments, and trade receivables/payables, managed by closely monitoring exchange rate movements - The Group is exposed to foreign currency risk due to holding bank balances, equity investments, trade receivables, and payables denominated in USD, RMB, and HKD[56](index=56&type=chunk) - The Group manages foreign currency risk by closely monitoring exchange rate movements[57](index=57&type=chunk) [Credit Risk](index=19&type=section&id=Financial%20Review-Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk-Credit%20Risk) To mitigate credit risk, the Group implements credit limits, approval, and monitoring procedures, assessing recoverability of trade debts and making adequate impairment provisions - The Group mitigates credit risk by establishing credit limits, approval, and monitoring procedures[58](index=58&type=chunk) - The Group recognizes loss allowances for expected credit losses on trade and other receivables, which are regularly updated to reflect changes in credit risk[58](index=58&type=chunk) [Liquidity Risk](index=20&type=section&id=Financial%20Review-Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk-Liquidity%20Risk) The Group manages liquidity risk by maintaining sufficient cash and cash equivalents to fund operations and mitigate cash flow fluctuations - The Group manages liquidity risk by monitoring its cash and cash equivalents levels, maintaining them at a level deemed sufficient by management to fund operations and mitigate the impact of cash flow fluctuations[59](index=59&type=chunk) [Fair Value Risk](index=20&type=section&id=Financial%20Review-Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk-Fair%20Value%20Risk) The Group is exposed to fair value risk arising from financial assets and liabilities measured at fair value on a recurring and non-recurring basis - The Group is exposed to fair value risk arising from financial assets and financial liabilities measured at fair value on a recurring and non-recurring basis[60](index=60&type=chunk) [Equity Price Risk](index=20&type=section&id=Financial%20Review-Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk-Equity%20Price%20Risk) The Group faces equity price risk from equity instruments designated as fair value through profit or loss, managed through portfolio diversification - The Group is exposed to equity price risk arising from equity instruments designated as fair value through profit or loss[61](index=61&type=chunk) - The Group manages price risk arising from investments in equity securities by diversifying its portfolio[61](index=61&type=chunk) [Share Option Scheme](index=20&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme in December 2023 to incentivize participants, with 128,603,750 options granted in January 2024 at HKD 2.54 per share, subject to vesting and performance conditions - The Company adopted a share option scheme on December 29, 2023, to incentivize eligible participants to contribute to the Company and its shareholders' interests[62](index=62&type=chunk) - Eligible participants of the share option scheme include directors and employees of the Company or its subsidiaries, service providers, and directors and employees of holding companies, fellow subsidiaries, or associated companies[63](index=63&type=chunk) - The scheme's authorized limit is **10%** of the shares in issue on the date of the EGM (**1,292,500,000 shares**), with a limit of **1%** of issued shares for any single participant within any twelve-month period[65](index=65&type=chunk) - The vesting period for share options shall not be less than **12 months**, the exercise period is **ten years** from the date of grant, and the subscription price is determined by the Board, not less than the closing price or par value[66](index=66&type=chunk)[67](index=67&type=chunk) Details of Share Options Granted on January 9, 2024 | Item | Details | | :--- | :--- | | Total number granted | 128,603,750 options | | Grantees | Mr. Liu Lei (71,087,500 options), Mr. Wang Zhenfei (6,462,500 options), eight other full-time employees (51,053,750 options) | | Exercise price | HKD 2.54 per share | | Exercise period | Ten years from the date of grant | | Vesting period | First tranche 20% (April 30, 2025), Second tranche 30% (April 30, 2026), Third tranche 50% (April 30, 2027) | | Performance targets | Performance targets determined by the Board must be met for the entire financial year immediately preceding each tranche's vesting date | | Clawback mechanism | Enforceable in cases of misconduct or termination of employment | | Financial assistance | No arrangements for provision | | Number of unexercised share options as of June 30, 2025 | 460,130,000 options (adjusted for share split) | [Other Information](index=24&type=section&id=Other%20Information) This chapter covers significant post-balance sheet events, including new share placings, confirms no share repurchases, and affirms directors' compliance with trading standards and corporate governance [Significant Post-Balance Sheet Events](index=24&type=section&id=Significant%20Post-Balance%20Sheet%20Events) New shares were placed in July and August 2025, issuing 120,000,000 shares for 161.0 million HKD, intended for healthcare M&A, R&D, and general working capital - On July 11, 2025, the Company entered into subscription agreements with three subscribers to subscribe for a total of **120,000,000 shares** at **HKD 1.35** per share[76](index=76&type=chunk) - On August 15, 2025, **120,000,000 subscription shares** were issued under general mandate, with net proceeds of **161.0 million HKD**[76](index=76&type=chunk) Proposed Use of Net Proceeds from Post-Balance Sheet Placing | Intended Use | Approximate Allocation (Million HKD) | Expected Time of Use | | :--- | :--- | :--- | | Funding for potential M&A of healthcare-related projects and investments in the healthcare industry | 96.6 | Before July 31, 2026 | | Research and development expenses | 32.2 | Before July 31, 2026 | | General working capital | 32.2 | Before July 31, 2026 | | **Total** | **161.0** | | [Repurchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Repurchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the company nor its subsidiaries repurchased, sold, or redeemed any of the company's listed securities - During the period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities[80](index=80&type=chunk) [Directors' Securities Transactions](index=24&type=section&id=Directors%27%20Securities%20Transactions) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, with all directors confirming compliance during the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for directors' securities transactions[81](index=81&type=chunk) - All directors have confirmed that they have complied with the Model Code and its code of conduct for directors' securities transactions throughout the period[81](index=81&type=chunk) [Directors' and Controlling Shareholders' Interests in Competing Business](index=25&type=section&id=Directors%27%20and%20Controlling%20Shareholders%27%20Interests%20in%20Competing%20Business) During the period, no directors or controlling shareholders had interests in businesses competing with the Group or any other conflicts of interest - During the period, none of the directors or controlling shareholders, or their respective close associates, had any interests in any business apart from the Group's business that competes or is likely to compete with the Group's business, nor were there any other conflicts of interest with the Group[82](index=82&type=chunk) [Compliance with Corporate Governance Code](index=25&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied in all material aspects with the Corporate Governance Code principles and code provisions set out in Appendix C1 of the Listing Rules - The Company has applied the principles of the Corporate Governance Code set out in Appendix C1 of the Listing Rules and adopted all applicable code provisions as its own corporate governance code, complying with it in all material aspects during the period[83](index=83&type=chunk)[84](index=84&type=chunk) [Review by Audit Committee](index=25&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee reviewed the unaudited interim results, confirming compliance with accounting standards and Listing Rules, with no objections to disclosures - The Company's Audit Committee has reviewed the unaudited interim results (including the interim report) for the period and is of the opinion that the financial information and report were prepared in accordance with applicable accounting standards, the Listing Rules, and other applicable legal requirements, and has no objections to the adequacy of the disclosures made[85](index=85&type=chunk) [Publication of Information on the HKEX Website](index=25&type=section&id=Publication%20of%20Information%20on%20the%20HKEX%20Website) The interim results announcement is published on the HKEX and company websites, with the full interim report to be provided to shareholders and published online - The interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.jin-hai.com.hk)[86](index=86&type=chunk) [Acknowledgement](index=25&type=section&id=Acknowledgement) The Board of Directors extends its gratitude to all clients, management, staff, business partners, and shareholders for their continued support - The Board of Directors extends its gratitude to all clients, management, staff, business partners, and shareholders of the Group for their continued support[87](index=87&type=chunk) [Board of Directors](index=25&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises eight directors: three executive, two non-executive, and three independent non-executive directors - As of the announcement date, the Board of Directors comprises eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors[89](index=89&type=chunk)

[Company Information](index=5&type=section&id=Company%20Information) This section provides an overview of the company's general information, the basis of financial statement preparation, and the adoption of new accounting standards [General Information](index=5&type=section&id=1.1%20General%20Information) Tesson Holdings Limited is incorporated in Bermuda, primarily engaged in lithium-ion power battery business, investment holding, and import/export trade - The Company is an investment holding company, primarily engaged in the production and sale of lithium-ion power batteries, standard components, charging equipment, material equipment, new energy solutions, and import/export trade[6](index=6&type=chunk) - The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[6](index=6&type=chunk) [Basis of Preparation](index=5&type=section&id=1.2%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, to be read with the annual consolidated financial statements for the year ended December 31, 2024, with consistent accounting policies - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of Appendix D2 to the Listing Rules[7](index=7&type=chunk) - The accounting policies adopted in preparing the interim financial statements are consistent with those followed in the preparation of the Group's consolidated financial statements for the year ended December 31, 2024[7](index=7&type=chunk) [Adoption of New and Revised HKFRSs](index=6&type=section&id=1.3%20Adoption%20of%20New%20and%20Revised%20HKFRSs) The adoption of new and revised HKFRSs during the period did not result in significant changes to the Group's accounting policies or financial statement presentation - During the period, the Group adopted all new and revised HKFRSs relevant to its operations, which did not result in significant changes to the Group's accounting policies, presentation of consolidated financial statements, or reported amounts for the current and prior periods[8](index=8&type=chunk) [Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated statement of profit or loss and other comprehensive income, and statement of financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue significantly decreased to HK$15,852 thousand, while operating loss and loss for the period narrowed considerably, driven by improved other income and losses, net, and reduced administrative expenses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Revenue | 15,852 | 36,476 | | Cost of sales | (15,650) | (35,885) | | Gross profit | 202 | 591 | | Other income and losses, net | (343) | (25,719) | | Distribution and selling expenses | (1,220) | (1,914) | | Administrative expenses | (31,116) | (69,365) | | Operating loss | (32,477) | (96,407) | | Finance costs | (1,173) | (1,555) | | Loss before tax | (33,650) | (97,962) | | Income tax | – | – | | Loss for the period | (33,650) | (97,962) | | Loss for the period attributable to owners of the Company | (23,326) | (83,726) | | Basic and diluted loss per share (HK cents) | (10.62) | (42.45) | - Total comprehensive loss for the period significantly narrowed to **HK$28,811 thousand** from HK$105,339 thousand in the prior period[3](index=3&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net assets decreased to HK$84,107 thousand from HK$112,918 thousand on December 31, 2024, with net current liabilities expanding primarily due to reduced bank and cash balances Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | **ASSETS** | | | | Non-current assets | 136,263 | 152,597 | | Current assets | 255,561 | 267,563 | | **LIABILITIES** | | | | Current liabilities | 302,993 | 302,467 | | Non-current liabilities | 4,724 | 4,775 | | **NET EQUITY** | | | | Net current liabilities | (47,432) | (34,904) | | Net assets | 84,107 | 112,918 | | Total equity | 84,107 | 112,918 | - Equity attributable to owners of the Company decreased from **HK$333,984 thousand** as of December 31, 2024, to **HK$308,953 thousand** as of June 30, 2025[5](index=5&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on various financial statement items, including revenue, expenses, assets, liabilities, equity, and other disclosures [Revenue and Segment Information](index=6&type=section&id=3.1%20Revenue%20and%20Segment%20Information) All Group revenue is derived from the lithium-ion power battery business in China, totaling **HK$15,852 thousand** for the period, a significant decrease from the prior period, with segment loss also narrowing - All Group revenue is derived from the People's Republic of China and recognized at a point in time[9](index=9&type=chunk) Revenue by Product (For the period ended June 30) | Product | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Batteries | 15,852 | 36,476 | Segment Information (For the period ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Revenue from external customers | 15,852 | 36,476 | | Segment loss | (26,816) | (89,399) | | Depreciation of property, plant and equipment | 18,270 | 33,893 | | Depreciation of right-of-use assets | 1,668 | 1,897 | [Other Income and Losses, Net](index=8&type=section&id=3.2%20Other%20Income%20and%20Losses%2C%20Net) Other income and losses, net, significantly improved from a loss of HK$25,719 thousand in the prior period to a loss of HK$343 thousand, primarily due to the absence of write-offs of property, plant and equipment Other Income and Losses, Net (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | (Losses)/gains on disposal of scrap materials | (1,087) | 663 | | Interest income | 12 | 51 | | Reversal of impairment loss on trade receivables | 62 | - | | Reversal of impairment loss/(impairment loss) on other receivables | 12 | (291) | | Reversal of impairment loss/(impairment loss) on inventories | 523 | (1,136) | | Write-off of property, plant and equipment | - | (25,488) | | Others | 135 | 482 | | **Total** | **(343)** | **(25,719)** | [Finance Costs](index=8&type=section&id=3.3%20Finance%20Costs) Finance costs for the period decreased to **HK$1,173 thousand** from HK$1,555 thousand in the prior period, primarily due to reduced interest expenses on borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Interest expense on borrowings | 1,104 | 1,404 | | Interest on lease liabilities | 69 | 151 | | **Total** | **1,173** | **1,555** | [Income Tax](index=8&type=section&id=3.4%20Income%20Tax) The Group had no assessable profits in Hong Kong during the period, thus no Hong Kong profits tax provision was made; Chinese subsidiaries are subject to a 25% tax rate, with some high-tech enterprises enjoying a preferential 15% rate - The Group had no assessable profits in Hong Kong during the period, and therefore no provision for Hong Kong profits tax was made[15](index=15&type=chunk) - All Group companies operating in China are subject to a 25% tax rate, except for certain subsidiaries eligible for China's national high-tech enterprise tax incentive, allowing them to pay tax at a preferential rate of **15%** in 2025[15](index=15&type=chunk) [Loss for the Period](index=9&type=section&id=3.5%20Loss%20for%20the%20Period) Loss for the period was primarily influenced by cost of sales, depreciation, research and development expenses, and staff costs, with significant reductions in R&D expenses and directors' emoluments Items Deducted in Arriving at Loss for the Period (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Cost of sales | 15,650 | 35,885 | | Depreciation of property, plant and equipment | 18,736 | 33,903 | | Depreciation of right-of-use assets | 1,843 | 2,276 | | Research and development expenses | 287 | 14,736 | | Directors' emoluments | 686 | 3,252 | | Staff costs (including directors' emoluments) | 6,725 | 11,917 | | Contributions to retirement benefit schemes | 850 | 1,300 | [Dividends](index=9&type=section&id=3.6%20Dividends) The Directors do not recommend the payment of an interim dividend for the period, consistent with the prior period - The Directors did not recommend the payment of an interim dividend for the period (2024: nil)[16](index=16&type=chunk) [Loss Per Share](index=9&type=section&id=3.7%20Loss%20Per%20Share) Basic loss per share for the period significantly narrowed to **10.62 HK cents** from 42.45 HK cents in the prior period; no diluted loss per share is presented due to the absence of dilutive potential ordinary shares Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted loss per share | (10.62) | (42.45) | - Basic loss per share is calculated based on the loss attributable to owners of the Company of approximately **HK$23,326,000** (for the period ended June 30, 2024: HK$83,726,000) and the weighted average of **219,685,228** ordinary shares in issue during the year[17](index=17&type=chunk) - No diluted loss per share is presented for the current and prior periods as the Company had no dilutive potential ordinary shares[18](index=18&type=chunk) [Property, Plant and Equipment](index=9&type=section&id=3.8%20Property%2C%20Plant%20and%20Equipment) During the reporting period, the Group did not acquire any property, plant and equipment; certain machinery with a carrying amount of **HK$7,000** was pledged as security for the acquisition of an associate - During the reporting period, the Group did not acquire any property, plant and equipment[19](index=19&type=chunk) - As of June 30, 2025, certain machinery with a carrying amount of **HK$7,000** was pledged as security for the acquisition of an associate[19](index=19&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=10&type=section&id=3.9%20Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2025, total trade and other receivables, deposits, and prepayments amounted to **HK$252,480 thousand**, a slight decrease from December 31, 2024, with trade receivables primarily aged between 0 and 60 days Trade and Other Receivables, Deposits and Prepayments (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Trade receivables (net of impairment loss) | 9,102 | 16,025 | | Bills receivable | 946 | 20 | | VAT recoverable | 6,558 | 6,410 | | Consideration receivable for disposal of subsidiaries | 12,156 | 10,640 | | Amounts due from disposed subsidiaries | 200,776 | 200,458 | | Other receivables, deposits and prepayments | 22,942 | 22,233 | | **Total** | **252,480** | **255,786** | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | 0 to 60 days | 7,013 | 12,551 | | 61 to 90 days | - | 1,372 | | Over 90 days | 2,089 | 2,102 | | **Total** | **9,102** | **16,025** | [Trade and Other Payables](index=10&type=section&id=3.10%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to **HK$273,115 thousand**, a slight increase from December 31, 2024, with trade payables primarily aged over 90 days Trade and Other Payables (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Trade payables | 60,343 | 58,635 | | Payables for acquisition of property, plant and equipment | 109,012 | 105,868 | | Accrued expenses and other payables | 103,760 | 104,637 | | **Total** | **273,115** | **269,140** | Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | 0 to 60 days | 86 | 750 | | 61 to 90 days | 545 | 1,859 | | Over 90 days | 59,712 | 56,026 | | **Total** | **60,343** | **58,635** | [Borrowings](index=11&type=section&id=3.11%20Borrowings) Borrowings for the period are unsecured, denominated in HKD, interest-bearing, and repayable within one year - Other borrowings for the presented period are unsecured, denominated in HKD, interest-bearing, and repayable within one year[25](index=25&type=chunk) [Amounts Due to Controlling Shareholder](index=11&type=section&id=3.12%20Amounts%20Due%20to%20Controlling%20Shareholder) Amounts due to the controlling shareholder are unsecured, interest-free, and have no fixed repayment terms - The amounts are unsecured, interest-free, and have no fixed repayment terms[26](index=26&type=chunk) [Share Capital](index=11&type=section&id=3.13%20Share%20Capital) As of June 30, 2025, the Company's authorized share capital was **HK$500,000 thousand**, with issued and fully paid share capital of **HK$21,969 thousand** comprising **219,685,228** shares, consistent with December 31, 2024 Movements in Share Capital (As of June 30) | Item | Number of Shares | HK$ '000 | | :--- | :--- | :--- | | **Authorized share capital** | | | | At January 1, 2024 | 5,000,000,000 | 500,000 | | Share consolidation and capital reduction | (4,500,000,000) | (450,000) | | Subdivision | 4,500,000,000 | 450,000 | | At June 30, 2025 | 5,000,000,000 | 500,000 | | **Issued and fully paid share capital** | | | | At January 1, 2024 | 1,483,486,700 | 148,349 | | Shares issued on rights issue | 593,365,583 | 59,337 | | Shares issued on subscription | 120,000,000 | 12,000 | | Share consolidation, capital reduction and subdivision | (1,977,167,055) | (197,717) | | At June 30, 2025 | 219,685,228 | 21,969 | [Contingent Liabilities](index=12&type=section&id=3.14%20Contingent%20Liabilities) As of the end of the reporting period, the Group had no significant contingent liabilities - As of the end of the reporting period, the Group had no significant contingent liabilities (December 31, 2024: nil)[28](index=28&type=chunk) [Capital Commitments](index=12&type=section&id=3.15%20Capital%20Commitments) As of June 30, 2025, the Group's total contracted but unprovided capital commitments amounted to **HK$32,169 thousand**, primarily for property, plant and equipment and investment in an associate Capital Commitments (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Contracted but not provided for: | | | | － Property, plant and equipment | 12,448 | 12,088 | | － Investment in an associate | 19,721 | 19,150 | | **Total** | **32,169** | **31,238** | [Related Party Transactions](index=12&type=section&id=3.16%20Related%20Party%20Transactions) Key management personnel compensation, specifically directors' emoluments, is disclosed in Note 8 - Emoluments of Directors, who are also key management personnel of the Group, are set out in Note 8[30](index=30&type=chunk) [Approval of Interim Financial Statements](index=12&type=section&id=3.17%20Approval%20of%20Interim%20Financial%20Statements) The interim financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025 - The interim financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025[31](index=31&type=chunk) [Business and Financial Review](index=13&type=section&id=Business%20and%20Financial%20Review) This section reviews the Group's business operations and financial performance, including market challenges and strategic responses [Business Review](index=13&type=section&id=4.1%20Business%20Review) During the period, the lithium-ion battery business faced challenges including oversupply, subsidy cancellations, intense price competition, and escalating US-China trade tensions, leading to declining sales and revenue; the Group has paused some R&D activities to cut costs and is exploring new opportunities like new energy heavy-duty truck charging stations for diversification [Lithium-ion Power Battery Business](index=13&type=section&id=4.1.1%20Lithium-ion%20Power%20Battery%20Business) The Chinese lithium-ion battery market faces oversupply, subsidy cancellations, intensified price competition, and escalating US-China trade tensions, leading to declining sales and revenue; new EV battery safety standards were also introduced, prompting the Group to pause some R&D to cut costs and plan investments in new energy heavy-duty truck charging stations - The Chinese lithium-ion battery market faces challenges including oversupply, cancellation of local government subsidies, aggressive pricing strategies by manufacturers, and escalating US-China trade tensions, leading to a decline in both sales volume and revenue for the Group during the period[33](index=33&type=chunk) - In April 2025, the US imposed tariffs of up to **145%** on goods from China, which, despite subsequent easing, continue to impact Chinese manufacturers severely, with technology exports remaining a key point of contention[33](index=33&type=chunk) - The Group has signed a framework agreement to invest in, construct, and operate new energy heavy-duty truck charging stations in Shenzhen and surrounding areas, aiming to strengthen its existing business structure and expand into the new energy market[34](index=34&type=chunk) - To effectively allocate resources, the Group has paused certain R&D activities related to battery technology, resulting in reduced associated costs; additionally, some machinery and equipment have been fully depreciated, leading to lower depreciation expenses and a decrease in net loss for the period[35](index=35&type=chunk) [Outlook](index=14&type=section&id=4.1.2%20Outlook) The Group will continue to develop its core battery manufacturing business and actively seek other expansion opportunities, particularly in new energy-related fields, to create shareholder value with prudence and reasonable costs - The Group is committed to continuously developing its core battery manufacturing business and actively seeking other business expansion opportunities, with the aforementioned new energy heavy-duty truck charging station project being part of its diversification strategy[37](index=37&type=chunk) - The Group will continue to monitor new energy-related business opportunities and ensure that any expansion activities are conducted with prudence and at reasonable costs, ultimately creating value for shareholders[37](index=37&type=chunk) [Financial Review](index=14&type=section&id=4.2%20Financial%20Review) During the period, Group revenue significantly declined due to reduced sales volumes from US-China trade tensions, but other income and losses, net, and administrative expenses improved considerably due to the absence of property, plant and equipment write-offs and reduced R&D and depreciation expenses; finance costs also decreased from partial loan repayments, leading to a substantial narrowing of loss per share [Revenue and Gross Profit Margin](index=14&type=section&id=4.2.1%20Revenue%20and%20Gross%20Profit%20Margin) Revenue for the period decreased from **HK$36,476 thousand** to **HK$15,852 thousand**, primarily due to reduced sales volumes resulting from US-China trade tensions Revenue (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Revenue | 15,852 | 36,476 | - The decrease in revenue was primarily due to reduced sales volumes compared to the corresponding period in 2024, attributed to the US-China trade tensions[38](index=38&type=chunk) [Other Income and Losses, Net](index=14&type=section&id=4.2.2%20Other%20Income%20and%20Losses%2C%20Net) Other income and losses, net, significantly improved from a loss of **HK$25,719 thousand** to a loss of **HK$343 thousand**, mainly because the write-off of property, plant and equipment of approximately **HK$25,488 thousand** did not recur during the reporting period Other Income and Losses, Net (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Other income and losses, net | (343) | (25,719) | - Primarily due to the write-off of property, plant and equipment of approximately **HK$25,488,000** not recurring during the reporting period[39](index=39&type=chunk) [Distribution and Selling Expenses](index=14&type=section&id=4.2.3%20Distribution%20and%20Selling%20Expenses) Distribution and selling expenses for the reporting period decreased to **HK$1,220 thousand** from HK$1,914 thousand in the prior period, mainly due to reduced staff costs and transportation and travel expenses Distribution and Selling Expenses (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Distribution and selling expenses | 1,220 | 1,914 | [Administrative Expenses](index=15&type=section&id=4.2.4%20Administrative%20Expenses) Administrative expenses decreased from **HK$69,365 thousand** to **HK$31,116 thousand**, primarily due to reduced depreciation from fully depreciated property, plant and equipment, and a significant decrease in R&D expenses from paused research projects Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Administrative expenses | 31,116 | 69,365 | - Depreciation decreased from **HK$33,892 thousand** to **HK$18,280 thousand**, and R&D expenses decreased from **HK$14,736 thousand** to **HK$287 thousand**[41](index=41&type=chunk) [Finance Costs](index=15&type=section&id=4.2.5%20Finance%20Costs) Finance costs decreased from **HK$1,555 thousand** to **HK$1,173 thousand**, primarily due to partial loan repayments during the reporting period Finance Costs (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Finance costs | 1,173 | 1,555 | - The decrease in finance costs was primarily due to partial loan repayments during the reporting period[42](index=42&type=chunk) [Basic and Diluted Loss Per Share](index=15&type=section&id=4.2.6%20Basic%20and%20Diluted%20Loss%20Per%20Share) Basic and diluted loss per share for the reporting period significantly narrowed to **10.62 HK cents** from 42.45 HK cents in the prior period Basic and Diluted Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted loss per share | (10.62) | (42.45) | [Human Resources Development](index=15&type=section&id=4.2.7%20Human%20Resources%20Development) As of June 30, 2025, the Group's employee count decreased to **72** from 123 on December 31, 2024; the Group provides training and competitive remuneration and benefits to its employees Number of Employees | Date | Number of Employees | | :--- | :--- | | June 30, 2025 | 72 | | December 31, 2024 | 123 | - The Group provides training to employees to update their professional knowledge, enhance their skills and development, and offers competitive remuneration packages and benefits, including provident fund contributions and medical insurance[44](index=44&type=chunk) [Interim Dividend](index=15&type=section&id=4.2.8%20Interim%20Dividend) The Directors do not recommend the payment of an interim dividend for the reporting period, consistent with the prior period - The Directors do not recommend the payment of an interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[45](index=45&type=chunk) [Liquidity and Financial Resources](index=15&type=section&id=4.2.9%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's bank and cash balances were approximately **HK$1,223 thousand**, with a gearing ratio of **27.30%** Liquidity and Financial Resources (As of June 30) | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Bank and cash balances | 1,223 | 9,552 | | Gearing ratio | 27.30% | 27.42% | [Borrowings and Pledges of Assets](index=15&type=section&id=4.2.10%20Borrowings%20and%20Pledges%20of%20Assets) Details of borrowings and pledges of assets are set out in Notes 11 and 14 - Details of borrowings and pledges of assets are set out in Notes 11 and 14[47](index=47&type=chunk) [Other Information](index=15&type=section&id=Other%20Information) This section covers securities transactions, foreign exchange risk, corporate governance, cautionary statements, and publication of interim results [Purchase, Sale or Redemption of the Company's Listed Securities](index=15&type=section&id=5.1%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[48](index=48&type=chunk) [Foreign Exchange Risk](index=16&type=section&id=5.2%20Foreign%20Exchange%20Risk) As the Group's operations are primarily in China and transacted in RMB, the Directors believe there is no significant foreign exchange rate risk, thus no hedging arrangements were made; the Group will continue to review and monitor related risks - As the Group's operations are primarily conducted in China and transacted in RMB, the Directors believe there is no significant foreign exchange rate risk to the Group's operating cash flow and liquidity, and therefore no hedging arrangements have been made[49](index=49&type=chunk) [Corporate Governance](index=16&type=section&id=5.3%20Corporate%20Governance) The Company has complied with all applicable provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules; the Audit Committee reviewed the Group's financial reporting procedures, internal controls, and discussed the interim report - During the reporting period, the Company complied with all applicable provisions of the Corporate Governance Code[50](index=50&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with the Company's management and discussed internal controls and financial reporting matters, including the unaudited interim report for the reporting period[51](index=51&type=chunk) - All Directors confirmed their compliance with the required standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[52](index=52&type=chunk) [Cautionary Statement](index=17&type=section&id=5.4%20Cautionary%20Statement) The Board reminds investors that unaudited interim financial results and operating data are based on internal Group information and should not be unduly relied upon; forward-looking statements are not guarantees of future performance, actual results may differ materially due to various factors, and the Group has no obligation to update or revise them - The Board reminds investors that the unaudited interim financial results and operating data are based on the Group's internal information, and investors should be aware that undue reliance or use of this information may lead to investment risks[53](index=53&type=chunk) - Forward-looking statements do not constitute a guarantee of future performance, and actual results, plans, and objectives may differ materially from those expressed in such statements due to various factors[54](index=54&type=chunk) [Publication of Interim Results and Interim Report](index=17&type=section&id=5.5%20Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the HKEXnews website and the Company's website; the interim report will be published and dispatched to shareholders in due course - This announcement is published on the HKEXnews website (https://www.hkexnews.hk) and the Company's website (http://www.tessonholdings.com)[55](index=55&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be published on the aforementioned websites and dispatched to shareholders in due course[55](index=55&type=chunk)

[Company Information and Disclaimer](index=1&type=section&id=Company%20Information%20and%20Disclaimer) This section provides an overview of the company, its listing on GEM, and the associated market characteristics and disclaimers [Company Overview](index=1&type=section&id=Company%20Overview) This report is the interim results announcement of Shanxi Changcheng Microlight Equipment Co., Ltd. (Stock Code: 8286) for the six months ended June 30, 2025. The company is incorporated in the People's Republic of China, and its H shares are listed on GEM of the Hong Kong Stock Exchange - Company Name: Shanxi Changcheng Microlight Equipment Co., Ltd[1](index=1&type=chunk) - Stock Code: **8286**, H shares listed on GEM of the Hong Kong Stock Exchange[1](index=1&type=chunk)[10](index=10&type=chunk) - Reporting Period: Six months ended June 30, 2025[1](index=1&type=chunk) [GEM Market Characteristics and Disclaimer](index=1&type=section&id=GEM%20Market%20Characteristics%20and%20Disclaimer) The GEM market of the Stock Exchange provides a listing platform for small and medium-sized companies, entailing higher investment risks, and investors are advised to exercise caution. Hong Kong Exchanges and Clearing Limited and the Stock Exchange assume no responsibility for the contents of this announcement - The GEM market provides a listing platform for small and medium-sized companies, involving higher investment risks, and investors are advised to exercise caution[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the accuracy or completeness of this announcement[2](index=2&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) This section presents the condensed consolidated financial statements, including statements of profit or loss, financial position, changes in equity, and cash flows, for the reporting period [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, the Group's revenue decreased by **4.24%** to **RMB 8,662 thousand**, gross profit decreased by **16.00%** to **RMB 3,007 thousand**, and loss and total comprehensive loss for the period expanded to **RMB 4,111 thousand** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,662 | 9,046 | -4.24% | | Cost of Sales | (5,655) | (5,468) | 3.42% | | Gross Profit | 3,007 | 3,578 | -16.00% | | Other Income, Gains and Losses | 1,217 | 1,227 | -0.81% | | Selling and Distribution Expenses | (102) | (150) | -32.00% | | Administrative and Other Operating Expenses | (7,197) | (7,330) | -1.81% | | Finance Costs | (1,036) | (1,233) | -15.98% | | Loss Before Tax | (4,111) | (3,908) | 5.20% | | Income Tax Expense | – | – | - | | Loss and Total Comprehensive Loss for the Period | (4,111) | (3,908) | 5.20% | | Basic and Diluted Loss Per Share (RMB) | (0.013) | (0.013) | 0.00% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net current liabilities were **RMB (196,532) thousand**, net liabilities were **RMB (146,032) thousand**, and total equity was **RMB (146,032) thousand**, indicating a persistent negative equity position Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | **Non-Current Assets** | | | | | Property, Plant and Equipment | 127,689 | 129,884 | -2,195 | | Right-of-Use Assets | 8,628 | 8,779 | -151 | | **Current Assets** | | | | | Inventories | 7,865 | 9,279 | -1,414 | | Trade Receivables | 14,757 | 5,881 | 8,876 | | Prepayments, Deposits and Other Receivables | 9,555 | 8,759 | 796 | | Cash and Cash Equivalents | 292 | 292 | 0 | | **Current Liabilities** | | | | | Trade Payables | 8,399 | 8,832 | -433 | | Accruals and Other Payables | 179,821 | 179,503 | 318 | | Contract Liabilities | 15,863 | 5,642 | 10,221 | | Amounts Due to Shareholders | 10,353 | 10,309 | 44 | | Bank and Other Borrowings | 12,365 | 11,944 | 421 | | Deferred Government Grants | 2,200 | 2,200 | 0 | | **Net Current Liabilities** | (196,532) | (194,219) | -2,313 | | **Net Liabilities** | (146,032) | (141,921) | -4,111 | | **Total Equity** | (146,032) | (141,921) | -4,111 | [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, total equity attributable to owners of the Company decreased by **RMB 4,111 thousand** to **RMB (145,835) thousand** due to the total comprehensive loss for the period Condensed Consolidated Statement of Changes in Equity (RMB thousands) | Indicator | January 1, 2025 (RMB thousands) | Total Comprehensive Loss for the Period (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Company | (141,724) | (4,111) | (145,835) | | Non-Controlling Interests | (197) | – | (197) | | Total Equity | (141,921) | (4,111) | (146,032) | [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, the Group's net cash used in operating activities was **RMB (6) thousand**, net cash generated from investing activities was **RMB 1 thousand**, net cash generated from financing activities was **RMB 5 thousand**, and cash and cash equivalents at period-end remained at **RMB 292 thousand** Condensed Consolidated Statement of Cash Flows (RMB thousands) | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (6) | 240 | | Net Cash Used in Investing Activities | 1 | (47) | | Net Cash Generated from Financing Activities | 5 | (161) | | Increase in Cash and Cash Equivalents | – | 32 | | Cash and Cash Equivalents at January 1 | 292 | 277 | | Cash and Cash Equivalents at June 30 | 292 | 309 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, significant accounting policies, and specific notes to the condensed consolidated financial statements, including revenue, expenses, and financial position items [General Information](index=8&type=section&id=General%20Information) Shanxi Changcheng Microlight Equipment Co., Ltd. was incorporated in China on November 10, 2000, with its H shares listed on GEM of the Hong Kong Stock Exchange - The Company was incorporated in China as a joint stock company on **November 10, 2000**[10](index=10&type=chunk) - H shares are listed on GEM of The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) [Going Concern Basis](index=8&type=section&id=Going%20Concern%20Basis) The Group faces significant going concern uncertainties due to substantial net current liabilities, net liabilities, and outstanding borrowings. The Board has implemented various measures to improve liquidity, including debt restructuring, interest waivers, repayment deferrals, and seeking shareholder funding, while actively expanding its customer base, thus the financial statements are prepared on a going concern basis - As of June 30, 2025, the Group had net current liabilities of approximately **RMB 196,532 thousand**, net liabilities of approximately **RMB 146,032 thousand**, and outstanding bank and other borrowings of approximately **RMB 71,424 thousand**, indicating significant going concern uncertainties[11](index=11&type=chunk) - The Company has taken measures to improve liquidity, including negotiating debt restructuring, interest waivers, and repayment deferrals with shareholders, lenders, and banks, seeking further financial assistance, and actively seeking new customers for fiber optic products[11](index=11&type=chunk) - The Board believes that with the implementation of these measures, the Group will be able to meet its financial obligations, and therefore the interim financial statements are prepared on a going concern basis[11](index=11&type=chunk) [Basis of Preparation](index=9&type=section&id=Basis%20of%20Preparation) These condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the GEM Listing Rules, with principal accounting policies consistent with those in the 2024 annual report, and are presented in RMB - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the GEM Listing Rules[12](index=12&type=chunk) - The principal accounting policies used in the preparation are consistent with those adopted in the annual report for the year ended December 31, 2024[12](index=12&type=chunk) - The financial statements are presented in RMB, and all amounts are rounded to the nearest thousand[12](index=12&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=9&type=section&id=Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The new and revised Hong Kong Financial Reporting Standards adopted during the period have not caused significant changes to the Group's accounting policies or financial statement amounts, and new standards not yet effective are also not expected to have a material impact - The adoption of new and revised Hong Kong Financial Reporting Standards during the period did not result in significant changes to accounting policies or financial statement amounts[13](index=13&type=chunk) - New Hong Kong Financial Reporting Standards that have been issued but are not yet effective are not expected to have a significant impact on the financial statements[13](index=13&type=chunk) [Revenue](index=10&type=section&id=Revenue) The Group's revenue primarily derives from the manufacturing and sale of fiber optic products, with total revenue for the six months ended June 30, 2025, at **RMB 8,662 thousand**, a **4.24%** year-on-year decrease. The Chinese market contributes the vast majority of revenue, with microchannel plates and fiber optic inverters being the main products - Revenue refers to the net invoiced value of goods sold, after deducting provisions for returns, trade discounts, and other sales-related taxes[14](index=14&type=chunk) Revenue Sources (RMB thousands) | Revenue Source | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Manufacturing and Sale of Fiber Optic Products | 8,662 | 9,046 | -4.24% | | Revenue from Customer Contracts | 8,662 | 9,046 | -4.24% | [Disaggregation of Revenue](index=10&type=section&id=Disaggregation%20of%20Revenue) In the first half of 2025, the Chinese market contributed **85.78%** of revenue, while revenue from Europe and Russia significantly decreased by **54.99%**. Microchannel plates and fiber optic inverters remained the primary revenue sources, with fiber optic tapers showing a notable **40.21%** increase in revenue Geographical Markets (RMB thousands) | Geographical Market | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | China | 7,430 | 7,346 | 1.14% | | Hong Kong and Other Asian Countries | 612 | 327 | 87.16% | | Europe and Russia | 620 | 1,373 | -54.99% | | **Total** | **8,662** | **9,046** | **-4.24%** | Major Products (RMB thousands) | Major Product | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Fiber Optic Inverters | 3,479 | 4,234 | -17.84% | | Fiber Optic Straight Plates | – | 150 | -100.00% | | Fiber Optic Faceplates | 69 | 460 | -85.00% | | Fiber Optic Tapers | 1,231 | 878 | 40.21% | | Microchannel Plates | 3,723 | 3,313 | 12.38% | | Others | 160 | 11 | 1354.55% | | **Total** | **8,662** | **9,046** | **-4.24%** | - All revenue is recognized at a point in time[18](index=18&type=chunk)[19](index=19&type=chunk) [Operating Segment Information](index=13&type=section&id=Operating%20Segment%20Information) The Group's primary business is the sale of fiber optic products, considered a single reportable segment. In the first half of 2025, microchannel plates and fiber optic inverters were the main products, the Chinese market was the primary revenue source, and Customer A contributed over half of the revenue - The Group's revenue and profit/loss contributions primarily derive from the sale of fiber optic inverters, fiber optic straight plates, fiber optic faceplates, fiber optic tapers, and microchannel plates, and are considered a single reportable segment[20](index=20&type=chunk) - All of the Group's non-current assets are located in Shanxi, China[22](index=22&type=chunk) [Product Information](index=13&type=section&id=Product%20Information) In the first half of 2025, microchannel plates and fiber optic inverters accounted for **43%** and **40%** of total revenue, respectively, while sales of fiber optic straight plates and fiber optic faceplates significantly decreased Product Revenue (RMB thousands, %) | Product | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Fiber Optic Inverters | 3,479 | 40 | 4,234 | 46 | | Fiber Optic Straight Plates | – | – | 150 | 2 | | Fiber Optic Faceplates | 69 | 1 | 460 | 5 | | Fiber Optic Tapers | 1,231 | 14 | 878 | 10 | | Microchannel Plates | 3,723 | 43 | 3,313 | 37 | | Others | 160 | 2 | 11 | – | | **Total** | **8,662** | **100** | **9,046** | **100** | [Geographical Information](index=14&type=section&id=Geographical%20Information) In the first half of 2025, the Chinese market contributed **RMB 7,430 thousand** in revenue, accounting for **85.78%** of total revenue, with significant growth in Hong Kong and other Asian countries, while revenue from Europe and Russia substantially declined Geographical Revenue (RMB thousands) | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | China | 7,430 | 7,346 | | Hong Kong and Other Asian Countries | 612 | 327 | | Europe and Russia | 620 | 1,373 | | **Total** | **8,662** | **9,046** | [Major Customer Information](index=14&type=section&id=Major%20Customer%20Information) In the first half of 2025, Customer A contributed **RMB 5,868 thousand** in revenue, accounting for **67.74%** of total revenue, while Customer B's contribution significantly decreased Major Customer Revenue (RMB thousands) | Customer | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Customer A | 5,868 | 5,343 | | Customer B | 996 | 1,652 | [Other Income, Gains and Losses](index=15&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) For the six months ended June 30, 2025, other income, gains, and losses primarily stemmed from government grants, totaling approximately **RMB 1,217 thousand**, a slight year-on-year decrease - Other income, gains, and losses primarily comprised income from government grants of approximately **RMB 1,100 thousand**[25](index=25&type=chunk) - Total other income, gains, and losses for the first half of 2025 amounted to **RMB 1,217 thousand**, a decrease of **RMB 10 thousand** compared to **RMB 1,227 thousand** in the same period of 2024[4](index=4&type=chunk)[25](index=25&type=chunk)[44](index=44&type=chunk) [Finance Costs](index=15&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs were **RMB 1,036 thousand**, a **15.98%** year-on-year decrease, primarily due to zero bank borrowing interest and a significant reduction in other borrowing interest Finance Costs (RMB thousands) | Finance Cost Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Borrowing Interest | – | 218 | | Other Borrowing Interest | 673 | 2,120 | | Interest on Amounts Due to Shareholders | 363 | 372 | | **Total** | **1,036** | **2,710** | | Less: Interest Waived | – | (1,477) | | **Net Finance Costs** | **1,036** | **1,233** | - Finance costs decreased by **RMB 197 thousand** year-on-year, mainly attributable to zero bank borrowing interest and a substantial reduction in other borrowing interest[26](index=26&type=chunk)[44](index=44&type=chunk) [Income Tax Expense](index=15&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group incurred no income tax expense, as there was no assessable profit in Hong Kong, and other regions were taxed at local rates - For the six months ended June 30, 2025, the Group had no current China corporate income tax or deferred tax, resulting in zero total tax deductions[27](index=27&type=chunk) - No provision for Hong Kong profits tax has been made as the Group had no estimated assessable profits in Hong Kong[27](index=27&type=chunk) [Loss Per Share](index=16&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company was **RMB 0.013**, consistent with the prior year, with no potential dilutive ordinary shares Loss Per Share | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB thousands) | 4,111 | 3,908 | | Shares in Issue (shares) | 308,860,000 | 308,860,000 | | Basic Loss Per Share (RMB) | (0.013) | (0.013) | - There were no potential dilutive ordinary shares in issue for the six months ended June 30, 2025 and 2024, thus diluted loss per share was the same as basic loss per share[29](index=29&type=chunk) [Interim Dividend](index=16&type=section&id=Interim%20Dividend) The directors of the Company do not recommend the payment of any dividend for the six months ended June 30, 2025, consistent with the prior year - The directors of the Company do not recommend the payment of any dividend for the six months ended June 30, 2025[30](index=30&type=chunk) [Property, Plant and Equipment](index=16&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group made no new purchases of property, plant, and equipment - For the six months ended June 30, 2025, the Group purchased property, plant and equipment of approximately **RMB zero**[31](index=31&type=chunk) [Trade Receivables](index=16&type=section&id=Trade%20Receivables) As of June 30, 2025, the Group's net trade receivables amounted to **RMB 14,757 thousand**, a significant increase of **150.92%** from the end of 2024, primarily due to a notable rise in receivables over **365 days** old Trade Receivables (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 36,122 | 27,247 | | Less: Impairment of Trade Receivables | (21,365) | (21,366) | | **Net Amount** | **14,757** | **5,881** | Aging Analysis of Trade Receivables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 90 Days | 3,374 | 5,561 | | 91 to 180 Days | 3,903 | 320 | | 181 to 365 Days | 224 | – | | Over 365 Days | 7,256 | – | | **Total** | **14,757** | **5,881** | [Trade Payables](index=17&type=section&id=Trade%20Payables) As of June 30, 2025, the Group's trade payables were **RMB 8,399 thousand**, a slight decrease from the end of 2024, with amounts over **365 days** still constituting the vast majority Aging Analysis of Trade Payables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 90 Days | 377 | 245 | | 91 to 180 Days | 158 | 360 | | 181 to 365 Days | 62 | 403 | | Over 365 Days | 7,802 | 7,824 | | **Total** | **8,399** | **8,832** | [Share Capital](index=18&type=section&id=Share%20Capital) As of June 30, 2025, the Company's total issued and fully paid share capital was **RMB 30,886 thousand**, comprising **198,860,000** domestic shares and **110,000,000** H shares, each with a par value of **RMB 0.10** Share Capital (shares, RMB thousands) | Share Type | June 30, 2025 (Number of Shares) | June 30, 2025 (RMB thousands) | December 31, 2024 (Number of Shares) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Domestic Shares (Par Value RMB 0.10 per share) | 198,860,000 | 19,886 | 198,860,000 | 19,886 | | H Shares (Par Value RMB 0.10 per share) | 110,000,000 | 11,000 | 110,000,000 | 11,000 | | **Total** | **308,860,000** | **30,886** | **308,860,000** | **30,886** | - Domestic shares and H shares enjoy equal status, with restrictions only on dividend payment currency and shareholder identity[35](index=35&type=chunk) [Capital Commitments](index=18&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments amounted to contracted contributions of **RMB 49 thousand** to an associate, consistent with the end of 2024 Capital Commitments (RMB thousands) | Capital Commitment Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted Contributions to an Associate | 49 | 49 | [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business operations, financial performance, liquidity, and risk management strategies for the reporting period [Business Review](index=19&type=section&id=Business%20Review) The Group primarily engages in the design, research, development, production, and sale of image transmission fiber optic products, mainly applied in military low-light night vision devices, with customers in China, Russia, and other Asian countries. In the first half of 2025, due to international circumstances, overseas customer orders significantly declined, while the Company actively expanded its domestic customer base, leading to a year-on-year increase in domestic sales - The Group's principal business involves the design, research, development, production, and sale of image transmission fiber optic products, including fiber optic inverters, fiber optic straight plates, fiber optic faceplates, fiber optic tapers, and microchannel plates[37](index=37&type=chunk) - Products are primarily applied in military low-light night vision devices and military low-light night vision imaging systems, with customers mainly located in China, Russia, and other Asian countries[37](index=37&type=chunk) - Revenue for the first half of 2025 decreased year-on-year, primarily due to a significant decline in overseas customer orders influenced by international circumstances[38](index=38&type=chunk) - The Company actively expanded its domestic customer base, resulting in a year-on-year increase in domestic sales, and plans to continue strengthening new domestic customer development and increasing market share with existing domestic customers, while striving to restore overseas revenue[38](index=38&type=chunk) [Financial Position and Going Concern Matters](index=19&type=section&id=Financial%20Position%20and%20Going%20Concern%20Matters) The Group faces severe going concern uncertainties with substantial net current liabilities and net liabilities. To improve its financial position, the Company plans operational measures such as revitalizing long-term assets, developing new products, expanding into civilian markets, and strengthening sales, alongside capital and liability measures like debt restructuring, interest waivers, repayment deferrals, and seeking shareholder funding - As of June 30, 2025, the Group had net current liabilities of approximately **RMB 196,532 thousand** and net liabilities of approximately **RMB 146,032 thousand**, indicating significant going concern uncertainties[39](index=39&type=chunk) - Planned financial measures include: (i) Capital level: targeted issuance of new shares/bonds to introduce strategic investors, and negotiating debt restructuring with shareholders, lenders, and financial institutions; (ii) Operational level: revitalizing long-term assets, developing new products, expanding into civilian product areas, and strengthening sales efforts; (iii) Liability level: negotiating debt restructuring, interest waivers, and repayment deferral plans with shareholders, lenders, and banks, and seeking further financial assistance from major shareholders and lenders[39](index=39&type=chunk)[40](index=40&type=chunk) [Financial Measures Implemented](index=21&type=section&id=Financial%20Measures%20Implemented) The Company has reached loan extension agreements with its major shareholder Taiyuan Changcheng and other lenders, deferring existing loan principal and interest payments until 2026, and securing partial interest waivers to alleviate liquidity pressure - Signed a revised loan agreement with major shareholder Taiyuan Changcheng, extending **RMB 14,600 thousand** in loan principal until **December 31, 2026**, and deferring interest payments for **2022-2025** until **2026**[41](index=41&type=chunk) - Reached agreements with two other lenders to extend existing loans until **December 31, 2026**, and defer interest payments for **2023-2025** until **2026**[41](index=41&type=chunk) - One other lender has waived interest payable from the first borrowing up to **December 31, 2024**, and deferred **2025** interest payment until **2026**[41](index=41&type=chunk) - As of June 30, 2025, the Group's outstanding bank borrowings amounted to **RMB 6,000 thousand**[42](index=42&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) In the first half of 2025, the Group's turnover decreased by **4.24%** to **RMB 8,662 thousand** year-on-year, while cost of sales increased by **3.42%**, leading to a **16.00%** decline in gross profit. Despite reductions in administrative and other operating expenses and finance costs, loss after tax still expanded to **RMB 4,111 thousand** - Turnover was approximately **RMB 8,662 thousand**, a decrease of **RMB 384 thousand** from **RMB 9,046 thousand** in the same period last year[43](index=43&type=chunk) - Cost of sales was approximately **RMB 5,655 thousand**, an increase of **RMB 187 thousand** from **RMB 5,468 thousand** in the same period last year[43](index=43&type=chunk) - Gross profit was **RMB 3,007 thousand**, a decrease of **RMB 571 thousand** from **RMB 3,578 thousand** in the same period last year[43](index=43&type=chunk) - Other income, gains, and losses were approximately **RMB 1,217 thousand**, primarily from the amortization of deferred government grants, a year-on-year decrease of **RMB 10 thousand**[44](index=44&type=chunk) - Administrative and other operating expenses were approximately **RMB 7,197 thousand**, a year-on-year decrease of **RMB 133 thousand**[44](index=44&type=chunk) - Finance costs were approximately **RMB 1,036 thousand**, a year-on-year decrease of **RMB 197 thousand**[44](index=44&type=chunk) - Loss after tax was approximately **RMB 4,111 thousand**, an expansion from **RMB 3,908 thousand** in the same period last year[45](index=45&type=chunk) [Related Party Transactions and Financial Assistance from Major Shareholders](index=22&type=section&id=Related%20Party%20Transactions%20and%20Financial%20Assistance%20from%20Major%20Shareholders) As of June 30, 2025, the Group received financial assistance from major shareholders Taiyuan Changcheng, Beijing Zhongze, and other related parties, with total amounts payable of approximately **RMB 26,410 thousand**. The Board believes the interest charged is on normal commercial terms or better - As of June 30, 2025, amounts payable to major shareholder Taiyuan Changcheng were approximately **RMB 24,160 thousand**[46](index=46&type=chunk) - As of June 30, 2025, amounts payable to major shareholder Beijing Zhongze were approximately **RMB 1,481 thousand**[46](index=46&type=chunk) - As of June 30, 2025, amounts payable to two other related parties were approximately **RMB 769 thousand**[46](index=46&type=chunk) - In the first half of 2025, total interest charged by Taiyuan Changcheng, Beijing Zhongze, and related parties was **RMB 358 thousand**, **RMB 6 thousand**, and **RMB 12 thousand**, respectively[47](index=47&type=chunk) - The Board considers the interest charged by related parties to be on normal commercial terms or better[47](index=47&type=chunk) [Bank and Other Borrowings](index=23&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group had outstanding bank borrowings of **RMB 6,000 thousand** and other borrowings of approximately **RMB 65,424 thousand** - As of June 30, 2025, the Group had outstanding bank borrowings of **RMB 6,000 thousand**, consistent with December 31, 2024[48](index=48&type=chunk) - As of June 30, 2025, the Group had outstanding other borrowings of approximately **RMB 65,424 thousand**[49](index=49&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 increased by **4%** to **RMB 168,786 thousand**, and total liabilities increased by **3%** to **RMB 314,818 thousand**, leading to a further **RMB 4,111 thousand** reduction in total equity to negative **RMB 146,032 thousand** - As of June 30, 2025, the Group's total assets increased by approximately **RMB 5,912 thousand** (**4%**) to **RMB 168,786 thousand**[50](index=50&type=chunk) - As of June 30, 2025, the Group's total liabilities increased by approximately **RMB 10,023 thousand** (**3%**) to **RMB 314,818 thousand**[50](index=50&type=chunk) - As of June 30, 2025, the Group's total equity decreased by approximately **RMB 4,111 thousand** from negative **RMB 141,921 thousand** to negative **RMB 146,032 thousand**[50](index=50&type=chunk) [Gearing Ratio](index=23&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was approximately **205%**, an increase from **200%** at the end of 2024, indicating a further rise in debt levels - As of June 30, 2025, the Group's gearing ratio was approximately **205%** (December 31, 2024: **200%**)[51](index=51&type=chunk) [Material Investments Held](index=24&type=section&id=Material%20Investments%20Held) As of June 30, 2025, the carrying amount of the Group's interests in associates was approximately **RMB zero** - As of June 30, 2025, the carrying amount of the Group's interests in associates was approximately **RMB zero**[52](index=52&type=chunk) [Acquisition and Disposal of Subsidiaries](index=24&type=section&id=Acquisition%20and%20Disposal%20of%20Subsidiaries) For the six months ended June 30, 2025, the Group did not undertake any acquisitions or disposals of subsidiaries - For the six months ended June 30, 2025, the Group did not acquire or dispose of any subsidiaries[53](index=53&type=chunk) [Pledge of Assets](index=24&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain buildings with a carrying amount of approximately **RMB 39,559 thousand** and right-of-use assets located at No. 7 Dianzi Street, Demonstration Zone, Shanxi, China, were pledged as collateral for the Group's bank borrowings - As of June 30, 2025, certain buildings with a carrying amount of approximately **RMB 39,559 thousand** were pledged as collateral for the Group's bank borrowings[54](index=54&type=chunk) - The Group's right-of-use assets located at No. 7 Dianzi Street, Demonstration Zone, Shanxi, China, were pledged as collateral for bank borrowings[54](index=54&type=chunk) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[55](index=55&type=chunk) [Foreign Exchange Fluctuation Risk](index=24&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The Group faces minimal foreign exchange risk as its business transactions, assets, and liabilities are primarily denominated in its functional currency - The Group faces minimal foreign exchange risk as its business transactions, assets, and liabilities are primarily denominated in the Group's functional currency[56](index=56&type=chunk) [Employee Information](index=24&type=section&id=Employee%20Information) As of June 30, 2025, the Group had approximately **288** full-time employees, with remuneration determined based on experience, performance, and contribution - As of June 30, 2025, the Group had approximately **288** full-time employees[57](index=57&type=chunk) - Employee remuneration is paid based on experience, performance, and value contributed to the Group[57](index=57&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section covers additional disclosures including directors' and major shareholders' interests, securities transactions, corporate governance practices, and board composition [Directors' and Supervisors' Interests in Shares, Underlying Shares and Debentures of the Company](index=25&type=section&id=Directors'%20and%20Supervisors'%20Interests%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, Director Yuan Guoliang held **3,895,000** H shares, representing **3.54%** of H shares and **1.26%** of the total share capital. Apart from this, no other directors or supervisors had disclosable interests or short positions Directors' and Supervisors' Interests in Shares | Name | Nature of Interest and Capacity | Number and Type of H Shares | Approximate Percentage of the Company's H Shares* | Approximate Percentage of the Company's Total Share Capital* | | :--- | :--- | :--- | :--- | :--- | | Yuan Guoliang | Personal and Family Interest | 3,895,000 H shares | 3.54% | 1.26% | - Yuan Guoliang's H shares include **3,645,000** shares registered in his own name and **250,000** shares registered in his spouse's name[59](index=59&type=chunk) - Save as disclosed above, none of the other directors or supervisors or their associates had any disclosable interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations[59](index=59&type=chunk) [Major Shareholders](index=26&type=section&id=Major%20Shareholders) As of June 30, 2025, the Company's major shareholders included Zhang Shaohui (holding **26.61%** of total share capital through controlled corporations), Beijing Zhongze Venture Capital Management Co., Ltd. (**26.61%**), Taiyuan Changcheng Optoelectronic Co., Ltd. (**25.95%**), among others, primarily domestic share holders Major Shareholders (shares, %) | Name/Entity | Nature of Interest and Capacity | Number and Type of Shares | Approximate Percentage of the Company's Domestic Shares* | Approximate Percentage of the Company's Total Share Capital* | | :--- | :--- | :--- | :--- | :--- | | Zhang Shaohui | Interest in Controlled Corporations | 82,200,000 Domestic Shares | 41.34% | 26.61% | | Beijing Zhongze Venture Capital Management Co., Ltd. | Registered and Beneficial Owner and Interest in Controlled Corporations | 82,200,000 Domestic Shares | 41.34% | 26.61% | | Taiyuan Changcheng Optoelectronic Co., Ltd. | Registered and Beneficial Owner | 80,160,000 Domestic Shares | 40.31% | 25.95% | | Beijing Yuankang Technology Co., Ltd. | Registered and Beneficial Owner | 34,000,000 Domestic Shares | 17.10% | 11.01% | | Ning Shuwu | Interest in Controlled Corporations | 34,000,000 Domestic Shares | 17.10% | 11.01% | | Taiyuan Tanghai Automatic Control Co., Ltd. | Registered and Beneficial Owner | 24,900,000 Domestic Shares | 12.52% | 8.06% | | Liu Jiang | Interest in Controlled Corporations | 24,900,000 Domestic Shares | 12.52% | 8.06% | | Qiu Guiqing | Family Interest | 24,900,000 Domestic Shares | 12.52% | 8.06% | - Zhang Shaohui holds domestic share interests through Beijing Zhongze and Taiyuan Tanghai[62](index=62&type=chunk) - Ning Shuwu holds domestic share interests through Beijing Yuankang Technology Co., Ltd[67](index=67&type=chunk) - Liu Jiang holds domestic share interests through Taiyuan Tanghai Automatic Control Co., Ltd., and his spouse Qiu Guiqing is deemed to have the same interests[67](index=67&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%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 - 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[64](index=64&type=chunk) [Share Option Scheme](index=28&type=section&id=Share%20Option%20Scheme) The Group does not have any share option scheme - The Group does not have any share option scheme[65](index=65&type=chunk) [Directors' and Supervisors' Rights to Purchase H Shares](index=28&type=section&id=Directors'%20and%20Supervisors'%20Rights%20to%20Purchase%20H%20Shares) For the six months ended June 30, 2025, no directors or supervisors of the Company were granted options to subscribe for H shares, nor did they own or exercise any rights to purchase H shares - For the six months ended June 30, 2025, no directors or supervisors of the Company were granted any options to subscribe for H shares of the Company[66](index=66&type=chunk) - As of June 30, 2025, none of the Company's directors and supervisors, or their spouses or children under the age of eighteen, owned or exercised any rights to purchase H shares of the Company during the period[66](index=66&type=chunk) [Material Contracts](index=29&type=section&id=Material%20Contracts) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries entered into any contracts material to the Group's business in which a director or supervisor had a material interest - For the six months ended June 30, 2025, there were no contracts entered into by the Company or any of its subsidiaries that were material to the Group's business and in which a director or supervisor of the Company had a material interest[68](index=68&type=chunk) [Competing Interests](index=29&type=section&id=Competing%20Interests) For the six months ended June 30, 2025, none of the Company's directors, supervisors, management shareholders, or their associates had any interests in businesses that compete or are likely to compete with the Group's business - For the six months ended June 30, 2025, none of the Company's directors, supervisors, management shareholders, or any of their respective associates had any interests in businesses that compete or are likely to compete with the Group's business[69](index=69&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Company has established an Audit Committee, comprising two independent non-executive directors and one non-executive director, chaired by Mr. Xu Yongfeng, with primary responsibilities including reviewing and overseeing financial reporting, risk management, and internal control systems. The Committee has reviewed the current period's results - The Company has established an Audit Committee, whose primary responsibilities include reviewing and overseeing the Group's financial reporting system, risk management, and internal control systems[70](index=70&type=chunk) - The Audit Committee comprises Mr. Xu Yongfeng (Chairman, Independent Non-executive Director), Mr. Rong Fei (Independent Non-executive Director), and Mr. Yuan Guoliang (Non-executive Director)[70](index=70&type=chunk) - The Audit Committee has reviewed the Group's unaudited results for the six months ended June 30, 2025[70](index=70&type=chunk) [Corporate Governance Practices](index=29&type=section&id=Corporate%20Governance%20Practices) The Company is committed to adopting corporate governance standards and has complied with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, with two exceptions: no insurance coverage for directors' legal actions, and one non-executive director and three independent non-executive directors not attending the 2021 Annual General Meeting - The Company has complied with the code provisions of the Corporate Governance Code and Corporate Governance Report set out in Appendix 15 to the GEM Listing Rules[72](index=72&type=chunk) - Non-compliance matters include: (i) no insurance coverage for directors' potential legal actions (Code Provision A1.8); (ii) one non-executive director and three independent non-executive directors not attending the Annual General Meeting on June 30, 2021 (Code Provision A6.7)[72](index=72&type=chunk) [Directors' Securities Transactions](index=30&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted a standard code for directors' securities transactions that is no less stringent than the GEM Listing Rules, and no instances of non-compliance were found - The Company has adopted a standard code whose terms are no less exacting than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[73](index=73&type=chunk) - Following enquiry, the Company is not aware of any non-compliance with the required standard of dealings and the code of conduct for directors' securities transactions[73](index=73&type=chunk) [Board Composition and Announcement Publication](index=30&type=section&id=Board%20Composition%20and%20Announcement%20Publication) As of the announcement date, the Board comprises eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors. This announcement will be published on the Stock Exchange's website and the Company's website - As of the announcement date (August 29, 2025), the Board comprises eight directors: three executive directors (Song Zhenglai, Jiao Baoguo, Wang Lingling), two non-executive directors (Wu Bo, Yuan Guoliang), and three independent non-executive directors (Xu Yongfeng, Wang Weizhong, Rong Fei)[74](index=74&type=chunk)[75](index=75&type=chunk) - This announcement will be published on the Stock Exchange's website 'www.hkexnews.hk' and the Company's website 'www.sxccoe.com'[75](index=75&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。 截至二零二五年六月三十日止六個月之中期業績 財務摘要 收益由截至二零二四年六月三十日止六個月約5.6百萬新加坡元增加約51.8%至截至二零二五年六 月三十日止六個月約8.5百萬新加坡元。 毛利由截至二零二四年六月三十日止六個月約0.7百萬新加坡元減少約92.7%至截至二零二五年六 月三十日止六個月約51,000新加坡元。 SOLIS HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） （股份代號：2227） 截至二零二五年六月三十日止六個月之溢利為約1.7百萬新加坡元，而截至二零二四年六月三十日 止六個月為虧損約0.5百萬新加坡元。 董事會已議決並不就截至二零二五年六月三十日止六個月宣派任何中期股息（截至二零二四年六 月三十日止六個月：無）。 中期業績 守益控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附屬公司（統稱「本集 團」）截至二零二五年六月三十日止六個 ...

[GEM Market Characteristics and Report Statement](index=2&type=section&id=GEM%20Market%20Characteristics%20and%20Report%20Statement) This section details GEM market risks and clarifies directors' full responsibility for report accuracy [GEM Market Characteristics](index=2&type=section&id=GEM%20Market%20Characteristics) The GEM market for SMEs carries high investment risks, significant volatility, and no liquidity guarantee - The GEM market is positioned for small and medium-sized companies, entailing **higher investment risks**, **greater market volatility**, and **no guaranteed liquidity**[2](index=2&type=chunk) [Report Statement and Directors' Responsibilities](index=2&type=section&id=Report%20Statement%20and%20Directors'%20Responsibilities) Hong Kong Exchanges and the Stock Exchange are not responsible for this report, with directors assuming full responsibility for its accuracy - Hong Kong Exchanges and the Stock Exchange bear no responsibility for the report's content, while the company's directors assume **full responsibility for its accuracy, completeness, and non-misleading nature**[2](index=2&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) This section presents the group's financial results, including statements of profit or loss, financial position, changes in equity, and cash flows, highlighting key performance indicators [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 Group's revenue decreased by 4.24%, gross profit fell by 16.00%, and loss before tax expanded by 5.20% to RMB 4,111 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,662 | 9,046 | -4.24% | | Cost of sales | (5,655) | (5,468) | 3.42% | | Gross profit | 3,007 | 3,578 | -16.00% | | Other income, gains and losses | 1,217 | 1,227 | -0.81% | | Selling and distribution expenses | (102) | (150) | -32.00% | | Administrative and other operating expenses | (7,197) | (7,330) | -1.79% | | Finance costs | (1,036) | (1,233) | -15.98% | | Loss before tax | (4,111) | (3,908) | 5.20% | | Income tax expense | – | – | – | | Loss and total comprehensive loss for the period | (4,111) | (3,908) | 5.20% | | Basic and diluted loss per share | (0.013) | (0.013) | 0.00% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group reported net current liabilities of RMB 196,532 thousand, net liabilities of RMB 146,032 thousand, and total equity of negative RMB 146,032 thousand, indicating ongoing financial pressure Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 136,317 | 138,663 | -1.76% | | Current assets | 32,469 | 24,211 | 34.11% | | **Liabilities** | | | | | Current liabilities | 229,001 | 218,430 | 4.84% | | Non-current liabilities | 85,817 | 86,365 | -0.63% | | **Net** | | | | | Net current liabilities | (196,532) | (194,219) | 1.19% | | Net liabilities | (146,032) | (141,921) | 2.89% | | Total equity | (146,032) | (141,921) | 2.89% | - Trade receivables significantly increased from **RMB 5,881 thousand** on December 31, 2024, to **RMB 14,757 thousand** on June 30, 2025, representing a **150.92% growth**[6](index=6&type=chunk) - Contract liabilities significantly increased from **RMB 5,642 thousand** on December 31, 2024, to **RMB 15,863 thousand** on June 30, 2025, representing a **181.16% growth**[6](index=6&type=chunk) [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, total equity attributable to owners further decreased by RMB 4,111 thousand due to the total comprehensive loss for the period, expanding accumulated losses to RMB 211,218 thousand Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | June 30, 2025 (RMB thousands) | January 1, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total equity at beginning of period | (141,921) | (108,301) | (33,620) | | Total comprehensive loss for the period | (4,111) | (3,908) | 203 | | Total equity at end of period | (146,032) | (112,209) | (33,823) | - Accumulated losses increased from **RMB (207,107) thousand** on January 1, 2025, to **RMB (211,218) thousand** on June 30, 2025[8](index=8&type=chunk) [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, net cash used in operating activities was RMB (6) thousand, net cash used in investing activities was RMB 1 thousand, net cash generated from financing activities was RMB 5 thousand, with cash and cash equivalents at period-end maintained at RMB 292 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (6) | 240 | (246) | | Net cash used in investing activities | 1 | (47) | 48 | | Net cash generated from financing activities | 5 | (161) | 166 | | Increase in cash and cash equivalents | – | 32 | (32) | | Cash and cash equivalents at end of period | 292 | 309 | (17) | [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 for the condensed consolidated financial statements, covering general information, accounting policies, and specific financial items [General Information](index=9&type=section&id=General%20Information) Shanxi Changcheng Microlight Equipment Co, Ltd was incorporated in China on November 10, 2000, with its H shares listed on the HKEX GEM - The company was incorporated in China on **November 10, 2000**, with its H shares listed on the **Hong Kong Stock Exchange GEM**[10](index=10&type=chunk) [Going Concern Basis](index=9&type=section&id=Going%20Concern%20Basis) The Group faces significant going concern uncertainties due to high net current liabilities, net liabilities, and outstanding borrowings, with management implementing measures like debt restructuring and shareholder financial support - As of June 30, 2025, the Group's net current liabilities were approximately **RMB 196,532 thousand**, net liabilities approximately **RMB 146,032 thousand**, and outstanding bank and other borrowings approximately **RMB 71,424 thousand**, indicating significant going concern uncertainties[11](index=11&type=chunk) - Management has implemented measures to improve liquidity, including negotiating debt restructuring, interest waivers, and repayment extensions with shareholders, lenders, and banks, while seeking further financial assistance and expanding fiber optic product sales channels[11](index=11&type=chunk) [Basis of Preparation](index=10&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, consistent with 2024 annual report accounting policies - The condensed consolidated financial statements are prepared in accordance with **HKAS 34** and the **GEM Listing Rules**, with accounting policies consistent with the 2024 annual report[12](index=12&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=10&type=section&id=Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted all new and revised HKFRS effective January 1, 2025, without significant changes to accounting policies or financial statement amounts - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective **January 1, 2025**, without significant changes to accounting policies or financial statement amounts[13](index=13&type=chunk) [Revenue and Segment Information](index=11&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from fiber optic product manufacturing and sales, totaling RMB 8,662 thousand for the six months ended June 30, 2025, a 4.24% year-on-year decrease, with microchannel plates and fiber optic inverters as key products and China as the main market, despite a significant decline in European and Russian market revenue Revenue by Product and Geographical Location (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | 8,662 | 9,046 | -4.24% | | **By Product** | | | | | Fiber optic inverters | 3,479 | 4,234 | -17.79% | | Fiber optic straight plates | – | 150 | -100.00% | | Fiber optic faceplates | 69 | 460 | -85.00% | | Fiber optic tapers | 1,231 | 878 | 40.21% | | Microchannel plates | 3,723 | 3,313 | 12.37% | | Others | 160 | 11 | 1354.55% | | **By Geographical Location** | | | | | China | 7,430 | 7,346 | 1.14% | | Hong Kong and other Asian countries | 612 | 327 | 87.16% | | Europe and Russia | 620 | 1,373 | -54.84% | - The Group considers sales of fiber optic inverters, fiber optic straight plates, fiber optic faceplates, fiber optic tapers, and microchannel plates as a **single reportable segment**[19](index=19&type=chunk) - Revenue from major customer A increased from **RMB 5,343 thousand** in 2024 to **RMB 5,868 thousand** in 2025, while revenue from customer B decreased from **RMB 1,652 thousand** to **RMB 996 thousand**[24](index=24&type=chunk) [Other Income, Gains and Losses](index=16&type=section&id=Other%20Income,%20Gains%20and%20Losses) For the six months ended June 30, 2025, other income, gains, and losses primarily comprised government grants totaling approximately RMB 1,217 thousand, a slight decrease from the prior year - Other income, gains and losses primarily comprised **government grants**, totaling **RMB 1,217 thousand** in 2025 and **RMB 1,227 thousand** in 2024[25](index=25&type=chunk) [Finance Costs](index=16&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs were RMB 1,036 thousand, a 15.98% decrease from RMB 1,233 thousand in the prior year, mainly due to reduced interest on other borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | – | 218 | (218) | | Interest on other borrowings | 673 | 2,120 | (1,447) | | Interest on amounts due to shareholders | 363 | 372 | (9) | | Less: Interest waived | – | (1,477) | 1,477 | | **Total** | 1,036 | 1,233 | (197) | [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group incurred no taxable profit, resulting in no income tax expense - The Group generated no taxable profit during the reporting period, thus **no income tax expense was recognized**[27](index=27&type=chunk) [Loss Per Share](index=17&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share remained at RMB 0.013, consistent with the prior year, due to unchanged issued shares and no potential dilutive ordinary shares Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB thousands) | 4,111 | 3,908 | | Number of shares in issue (shares) | 308,860,000 | 308,860,000 | | Basic and diluted loss per share (RMB) | (0.013) | (0.013) | [Interim Dividend](index=17&type=section&id=Interim%20Dividend) The Board of Directors does not recommend paying any dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend paying any dividend for the six months ended **June 30, 2025**[30](index=30&type=chunk) [Property, Plant and Equipment](index=17&type=section&id=Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group did not purchase any property, plant, or equipment - During the reporting period, the Group made **no purchases of property, plant, and equipment**[31](index=31&type=chunk) [Trade Receivables](index=17&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables significantly increased by 150.92% to RMB 14,757 thousand from RMB 5,881 thousand on December 31, 2024, with a notable rise in amounts over 365 days past due Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total trade receivables | 36,122 | 27,247 | 8,875 | | Less: Impairment of trade receivables | (21,365) | (21,366) | 1 | | **Net** | 14,757 | 5,881 | 8,876 | | **By Ageing** | | | | | Within 90 days | 3,374 | 5,561 | (2,187) | | 91 to 180 days | 3,903 | 320 | 3,583 | | 181 to 365 days | 224 | – | 224 | | Over 365 days | 7,256 | – | 7,256 | [Trade Payables](index=18&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables were RMB 8,399 thousand, a slight decrease from RMB 8,832 thousand on December 31, 2024, with amounts over 365 days still constituting the majority Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | 0 to 90 days | 377 | 245 | 132 | | 91 to 180 days | 158 | 360 | (202) | | 181 to 365 days | 62 | 403 | (341) | | Over 365 days | 7,802 | 7,824 | (22) | | **Total** | 8,399 | 8,832 | (433) | [Share Capital](index=19&type=section&id=Share%20Capital) As of June 30, 2025, the company's total issued and fully paid share capital was RMB 30,886 thousand, comprising 198,860,000 domestic shares and 110,000,000 H shares, each with a par value of RMB 0.10 Share Capital Composition (As of June 30) | Share Capital Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Domestic shares (198,860,000 shares) | 19,886 | 19,886 | | H shares (110,000,000 shares) | 11,000 | 11,000 | | **Total** | 30,886 | 30,886 | [Capital Commitments](index=19&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments amounted to RMB 49 thousand for contracted contributions to an associate, consistent with the previous fiscal period-end Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted contributions to an associate | 49 | 49 | [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business operations, financial condition, and going concern matters, along with key financial performance indicators and related party transactions [Business Review](index=20&type=section&id=Business%20Review) The Group primarily designs, develops, manufactures, and sells image transmission fiber optic products for military night vision, with H1 2025 revenue declining due to overseas order drops but domestic sales increasing, as the company actively expands markets - The Group's primary business involves the design, research and development, production, and sale of **image transmission fiber optic products**, mainly applied in **military low-light night vision devices**[37](index=37&type=chunk) - In the first half of 2025, operating revenue decreased year-on-year, primarily due to a **significant decline in overseas customer orders** caused by international situations[38](index=38&type=chunk) - The company is actively developing domestic customers, with domestic sales increasing year-on-year, and will continue to strengthen new domestic customer development and increase market share with existing domestic customers, while striving to restore overseas revenue[38](index=38&type=chunk) [Financial Position and Going Concern Matters](index=21&type=section&id=Financial%20Position%20and%20Going%20Concern%20Matters) The Group faces severe liquidity and debt issues, with management implementing asset revitalization, new product development, market expansion, debt restructuring, interest waivers, repayment extensions, and shareholder financial support to address significant going concern uncertainties - As of June 30, 2025, the Group's net current liabilities and net liabilities were approximately **RMB 196,532 thousand** and **RMB 146,032 thousand**, respectively, indicating significant going concern uncertainties[39](index=39&type=chunk) - Financial measures include: **revitalizing long-term assets** (leasing properties), **researching and developing new products** and extending down the industrial chain, **strengthening sales efforts**, and **expanding into civilian product sectors**[39](index=39&type=chunk) - Debt-related measures include: negotiating **debt restructuring, interest waivers, and repayment extensions** with shareholders, lenders, and banks, and seeking further financial assistance from major shareholders and lenders[39](index=39&type=chunk) - Implemented financial measures include major shareholder Taiyuan Changcheng and other lenders agreeing to **extend loan principal to December 31, 2026**, and **defer interest payments**[41](index=41&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's turnover decreased by 4.24% year-on-year, and gross profit declined by 16.00%, but administrative and other operating expenses and finance costs decreased, resulting in a 5.20% expansion of loss after tax to RMB 4,111 thousand Financial Review Key Indicators (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Turnover | 8,662 | 9,046 | (384) | | Cost of sales | 5,655 | 5,468 | 187 | | Gross profit | 3,007 | 3,578 | (571) | | Other income, gains and losses | 1,217 | 1,227 | (10) | | Administrative and other operating expenses | 7,197 | 7,330 | (133) | | Finance costs | 1,036 | 1,233 | (197) | | Loss after tax | 4,111 | 3,908 | 203 | [Related Party Transactions and Financial Assistance from Major Shareholders](index=23&type=section&id=Related%20Party%20Transactions%20and%20Financial%20Assistance%20from%20Major%20Shareholders) The Group received financial assistance from major shareholders Taiyuan Changcheng, Beijing Zhongze, and other related parties, with total amounts due to these parties approximately RMB 26,410 thousand as of June 30, 2025, and interest charged by related parties on normal commercial terms or better Amounts Due to Major Shareholders and Related Parties (As of June 30) | Related Party | June 30, 2025 (RMB thousands) | | :--- | :--- | | Taiyuan Changcheng | 24,160 | | Beijing Zhongze | 1,481 | | Other related parties | 769 | | **Total** | 26,410 | Total Interest Charged by Related Parties (For the six months ended June 30) | Related Party | 2025 (RMB thousands) | | :--- | :--- | | Taiyuan Changcheng | 358 | | Beijing Zhongze | 6 | | Other related parties | 12 | | **Total** | 376 | [Bank and Other Borrowings](index=24&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group had outstanding bank borrowings of RMB 6,000 thousand and other borrowings of approximately RMB 65,424 thousand Bank and Other Borrowings (As of June 30) | Borrowing Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank borrowings | 6,000 | 6,000 | | Other borrowings | 65,424 | – | | **Total** | 71,424 | 6,000 | [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total assets increased by 4% to RMB 168,786 thousand, total liabilities increased by 3% to RMB 314,818 thousand, leading to a decrease in total equity by approximately RMB 4,111 thousand to negative RMB 146,032 thousand Liquidity and Financial Resources Overview (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total assets | 168,786 | 162,874 | 5,912 | | Total liabilities | 314,818 | 304,795 | 10,023 | | Total equity | (146,032) | (141,921) | (4,111) | [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio increased to approximately 205% from 200% on December 31, 2024, indicating a further rise in debt levels Gearing Ratio (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 205% | 200% | [Material Investments Held](index=25&type=section&id=Material%20Investments%20Held) As of June 30, 2025, the Group's carrying amount of interests in associates was zero - The Group held **no material investments in associates** at the end of the reporting period[52](index=52&type=chunk) [Acquisition and Disposal of Subsidiaries](index=25&type=section&id=Acquisition%20and%20Disposal%20of%20Subsidiaries) For the six months ended June 30, 2025, the Group neither acquired nor disposed of any subsidiaries - During the reporting period, the Group did not engage in any **acquisition or disposal of subsidiaries**[53](index=53&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, buildings with a carrying amount of approximately RMB 39,559 thousand and right-of-use assets located in Shanxi, China, were pledged as collateral for bank borrowings - Buildings with a carrying amount of approximately **RMB 39,559 thousand** were pledged as collateral for bank borrowings[54](index=54&type=chunk) - Right-of-use assets located in Shanxi, China, were also pledged as collateral for bank borrowings[54](index=54&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - The Group had **no contingent liabilities** at the end of the reporting period[55](index=55&type=chunk) [Exchange Rate Fluctuation Risk](index=25&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group faces minimal foreign exchange risk as its business transactions, assets, and liabilities are primarily denominated in its functional currency - The Group faces **minimal foreign exchange risk** as its business transactions, assets, and liabilities are primarily denominated in its functional currency[56](index=56&type=chunk) [Employee Information](index=25&type=section&id=Employee%20Information) As of June 30, 2025, the Group employed approximately 288 full-time staff, with remuneration determined by experience, performance, and contribution - As of June 30, 2025, the Group employed approximately **288 full-time staff**[57](index=57&type=chunk) [Other Information](index=26&type=section&id=Other%20Information) This section covers additional disclosures including directors' and major shareholders' interests, securities transactions, corporate governance, and employee details [Directors' and Supervisors' Interests in Shares, Underlying Shares and Debentures of the Company](index=26&type=section&id=Directors'%20and%20Supervisors'%20Interests%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, Director Yuan Guoliang held 3,895,000 H shares, representing approximately 3.54% of H shares and 1.26% of total share capital, with no other directors or supervisors having disclosable interests or short positions Directors' and Supervisors' Long Positions in Shares of the Company (As of June 30) | Name | Nature and Capacity of Interest | Number and Class of H Shares | Approximate Percentage of H Shares Held* | Approximate Percentage of Total Share Capital Held* | | :--- | :--- | :--- | :--- | :--- | | Yuan Guoliang | Personal and family interests | 3,895,000 H shares | 3.54% | 1.26% | [Major Shareholders](index=27&type=section&id=Major%20Shareholders) As of June 30, 2025, the company's major shareholders include Zhang Shaohui (via controlled companies), Beijing Zhongze Venture Capital Management Co, Ltd, Taiyuan Changcheng Optoelectronic Co, Ltd, Beijing Yuankang Technology Co, Ltd, Ning Shuwu (via controlled companies), Taiyuan Tanghai Automatic Control Co, Ltd, Liu Jiang (via controlled companies), and Qiu Guiqing (family interests), primarily holding domestic shares Major Shareholders' Shareholdings (As of June 30) | Name/Company Name | Nature and Capacity of Interest | Number and Class of Domestic Shares | Approximate Percentage of Domestic Shares Held* | Approximate Percentage of Total Share Capital Held* | | :--- | :--- | :--- | :--- | :--- | | Zhang Shaohui | Interest in controlled corporation | 82,200,000 domestic shares | 41.34% | 26.61% | | Beijing Zhongze Venture Capital Management Co, Ltd | Registered and beneficial owner and interest in controlled corporation | 82,200,000 domestic shares | 41.34% | 26.61% | | Taiyuan Changcheng Optoelectronic Co, Ltd | Registered and beneficial owner | 80,160,000 domestic shares | 40.31% | 25.95% | | Beijing Yuankang Technology Co, Ltd | Registered and beneficial owner | 34,000,000 domestic shares | 17.10% | 11.01% | | Ning Shuwu | Interest in controlled corporation | 34,000,000 domestic shares | 17.10% | 11.01% | | Taiyuan Tanghai Automatic Control Co, Ltd | Registered and beneficial owner | 24,900,000 domestic shares | 12.52% | 8.06% | | Liu Jiang | Interest in controlled corporation | 24,900,000 domestic shares | 12.52% | 8.06% | | Qiu Guiqing | Family interest | 24,900,000 domestic shares | 12.52% | 8.06% | [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, neither the company nor its subsidiaries engaged in the **purchase, sale, or redemption of listed securities**[64](index=64&type=chunk) [Share Option Scheme](index=29&type=section&id=Share%20Option%20Scheme) The Group does not have any share option scheme - The Group has **no share option scheme**[65](index=65&type=chunk) [Rights of Directors and Supervisors to Purchase H Shares](index=29&type=section&id=Rights%20of%20Directors%20and%20Supervisors%20to%20Purchase%20H%20Shares) For the six months ended June 30, 2025, no directors or supervisors were granted or exercised any rights to subscribe for the company's H shares - During the reporting period, no directors or supervisors were granted or exercised any **rights to purchase H shares**[66](index=66&type=chunk) [Material Contracts](index=30&type=section&id=Material%20Contracts) The Board believes that for the six months ended June 30, 2025, neither the company nor its subsidiaries entered into any material contracts in which directors or supervisors had a significant interest - During the reporting period, the Group had **no material related party contracts**[68](index=68&type=chunk) [Competing Interests](index=30&type=section&id=Competing%20Interests) The Board believes that for the six months ended June 30, 2025, no directors, supervisors, management shareholders, or their associates had interests in businesses competing with the Group - During the reporting period, directors, supervisors, and management shareholders had **no competing interests**[69](index=69&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The company has established an Audit Committee, comprising two independent non-executive directors and one non-executive director, primarily responsible for reviewing and overseeing financial reporting, risk management, and internal control systems, and has reviewed the current period's results - The Audit Committee comprises Mr Xu Yongfeng (Chairman), Mr Rong Fei (Independent Non-executive Director), and Mr Yuan Guoliang (Non-executive Director)[70](index=70&type=chunk) - The Audit Committee has reviewed the Group's unaudited results for the six months ended **June 30, 2025**[70](index=70&type=chunk) [Corporate Governance Practices](index=30&type=section&id=Corporate%20Governance%20Practices) The company has complied with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, except for not purchasing directors' liability insurance and some non-executive directors' absence from the AGM - The company has complied with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, with two exceptions: **no directors' liability insurance was purchased**, and **some non-executive directors did not attend the Annual General Meeting**[72](index=72&type=chunk) [Directors' Securities Transactions](index=31&type=section&id=Directors'%20Securities%20Transactions) The company has adopted a standard code for directors' securities transactions no less stringent than the GEM Listing Rules, with no non-compliance found - The company has adopted a standard code for directors' securities transactions, and **no non-compliance was identified**[73](index=73&type=chunk) [Board Approval and Contact Information](index=31&type=section&id=Board%20Approval%20and%20Contact%20Information) This report was approved by the Board on August 29, 2025, comprising three executive, two non-executive, and three independent non-executive directors, with publication details provided - This report was approved by the Board on **August 29, 2025**[74](index=74&type=chunk)[75](index=75&type=chunk) - The Board comprises eight directors: Mr Song Zhenglai, Mr Jiao Baoguo, Ms Wang Lingling (Executive Directors); Mr Wu Bo, Mr Yuan Guoliang (Non-executive Directors); Mr Xu Yongfeng, Mr Wang Weizhong, Mr Rong Fei (Independent Non-executive Directors)[75](index=75&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) Rongwanjia Life Service Co., Ltd. reported interim results for the six months ended June 30, 2025, with net profit increasing by 2.0% year-on-year to RMB 94.7 million, gross profit by 8.1% to RMB 259.2 million, and total revenue by 1.7% to RMB 1,011.9 million 2025 H1 Key Financial Indicators | Indicator | June 30, 2025 (RMB million) | June 30, 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Net Profit | 94.7 | 92.8 | 2.0 | | Net Profit Margin | 9.3% | - | Broadly Stable | | Gross Profit | 259.2 | 239.7 | 8.1 | | Gross Profit Margin | 25.6% | 24.1% | 1.5 percentage points | | Total Revenue | 1,011.9 | 995.2 | 1.7 | [Interim Results](index=2&type=section&id=Interim%20Results) The Group announced its unaudited consolidated interim results for the six months ended June 30, 2025, including the consolidated balance sheet and consolidated income statement, compared with the same period in 2024 [Consolidated Balance Sheet](index=2&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the Group's total assets were RMB 4,356.0 million, an increase of approximately 4.4% from December 31, 2024, with total current assets at RMB 3,956.5 million and total liabilities at RMB 2,054.8 million Consolidated Balance Sheet Summary (RMB) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Total Current Assets | 3,956,477,657.39 | 3,777,249,135.72 | | Total Non-Current Assets | 399,546,037.50 | 396,848,219.51 | | **Total Assets** | **4,356,023,694.89** | **4,174,097,355.23** | | **Liabilities** | | | | Total Current Liabilities | 2,036,918,395.68 | 1,941,948,820.32 | | Total Non-Current Liabilities | 17,907,415.72 | 24,221,814.78 | | **Total Liabilities** | **2,054,825,811.40** | **1,966,170,635.10** | | **Shareholders' Equity** | | | | Total Equity Attributable to Parent Company Shareholders | 2,278,597,029.11 | 2,188,011,573.93 | | Non-controlling Interests | 22,600,854.38 | 19,915,146.20 | | **Total Shareholders' Equity** | **2,301,197,883.49** | **2,207,926,720.13** | | **Total Liabilities and Shareholders' Equity** | **4,356,023,694.89** | **4,174,097,355.23** | [Consolidated Income Statement](index=6&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group's total operating revenue was RMB 1,011.9 million, a year-on-year increase of 1.7%, with net profit rising 2.0% to RMB 94.7 million Consolidated Income Statement Summary (RMB) | Item | Jan-Jun 2025 (Unaudited) | Jan-Jun 2024 (Unaudited) | | :--- | :--- | :--- | | Total Operating Revenue | 1,011,856,907.76 | 995,168,060.86 | | Total Operating Costs | 813,752,698.50 | 819,790,907.54 | | Operating Profit | 123,501,827.34 | 117,720,399.89 | | Total Profit | 120,815,716.74 | 119,702,732.69 | | Income Tax Expense | 26,163,138.73 | 26,935,595.36 | | Net Profit | 94,652,578.01 | 92,767,137.33 | | Net Profit Attributable to Owners of the Parent Company | 89,398,187.55 | 91,099,587.40 | | Non-controlling Interests | 5,254,390.46 | 1,667,549.93 | | Basic EPS (RMB/share) | 0.24 | 0.24 | | Diluted EPS (RMB/share) | 0.24 | 0.24 | [Notes to Financial Statement Items](index=9&type=section&id=Notes%20to%20Financial%20Statement%20Items) This section details the notes to various items in the Group's financial statements, including company overview, accounting policies, composition and changes in assets and liabilities, and specific details on revenue, costs, taxes, and earnings per share [General Information](index=9&type=section&id=General%20Information) Rongwanjia Life Service Co., Ltd. was incorporated in China on November 2, 2000, primarily engaged in property management and related value-added services, with its H-shares listed on the Main Board of the Hong Kong Stock Exchange on January 15, 2021 - Company incorporated in China on **November 2, 2000**, primarily engaged in property management and related value-added services[17](index=17&type=chunk) - H-shares listed on the Main Board of the Hong Kong Stock Exchange on **January 15, 2021**[18](index=18&type=chunk) [Summary of Significant Accounting Policies](index=9&type=section&id=Summary%20of%20Significant%20Accounting%20Policies) The Group's financial statements are prepared on a going concern basis, in accordance with China Accounting Standards for Business Enterprises, Hong Kong Companies Ordinance, and HKEX Listing Rules, confirming the Group's recent profitable operating history and financial resources - Financial statements prepared on a going concern basis, complying with China Accounting Standards, Hong Kong Companies Ordinance, and HKEX Listing Rules[19](index=19&type=chunk) - Group has a recent profitable operating history and financial resources, supporting the going concern assumption[20](index=20&type=chunk) [Accounts Receivable](index=10&type=section&id=Accounts%20Receivable) As of June 30, 2025, the Group's total accounts receivable was RMB 2,824.7 million, with the highest proportion aged within 1 year, and a bad debt provision rate of 17.72% Accounts Receivable Aging Analysis (RMB) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year (inclusive) | 1,587,887,747.70 | 1,420,972,949.85 | | 1-2 years | 481,044,942.79 | 484,220,845.26 | | 2-3 years | 343,919,999.48 | 309,037,741.69 | | Over 3 years | 411,842,411.30 | 337,167,354.06 | | Total | 2,824,695,101.27 | 2,551,398,890.86 | Accounts Receivable Bad Debt Provision Classification (RMB) | Category | June 30, 2025 Book Balance | June 30, 2025 Bad Debt Provision | June 30, 2025 Provision Rate (%) | June 30, 2025 Carrying Amount | | :--- | :--- | :--- | :--- | :--- | | Provision for bad debts by portfolio | 2,824,695,101.27 | 500,624,368.37 | 17.72 | 2,324,070,732.90 | | **Total** | **2,824,695,101.27** | **500,624,368.37** | **17.72** | **2,324,070,732.90** | [Prepayments](index=11&type=section&id=Prepayments) As of June 30, 2025, the Group's total prepayments were RMB 132.2 million, an increase of 19.5% from December 31, 2024, with prepayments aged 2-3 years significantly increasing to 44.69% Prepayments Aging Analysis (RMB) | Item | June 30, 2025 Amount | June 30, 2025 Percentage (%) | December 31, 2024 Amount | December 31, 2024 Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 45,594,304.69 | 34.49 | 41,848,250.64 | 37.84 | | 1-2 years | 19,822,255.62 | 15.00 | 60,153,778.08 | 54.39 | | 2-3 years | 59,073,147.79 | 44.69 | 7,441,921.45 | 6.73 | | Over 3 years | 7,690,823.10 | 5.82 | 1,148,374.18 | 1.04 | | Total | 132,180,531.20 | 100.00 | 110,592,324.35 | 100.00 | [Other Receivables](index=11&type=section&id=Other%20Receivables) As of June 30, 2025, the Group's total other receivables were RMB 578.5 million, a slight increase of 1.3% from December 31, 2024, with a bad debt provision rate of 21.23% Composition of Other Receivables (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Interest Receivable | 248,182.37 | 223,294.22 | | Other Receivables | 578,227,868.56 | 570,881,960.80 | | Total | 578,476,050.93 | 571,105,255.02 | Other Receivables Bad Debt Provision Classification (RMB) | Category | June 30, 2025 Book Balance | June 30, 2025 Bad Debt Provision | June 30, 2025 Provision Rate (%) | June 30, 2025 Carrying Amount | | :--- | :--- | :--- | :--- | :--- | | Provision for bad debts by portfolio | 734,103,803.70 | 155,875,935.14 | 21.23 | 578,227,868.56 | | **Total** | **734,103,803.70** | **155,875,935.14** | **21.23** | **578,227,868.56** | [Inventories](index=13&type=section&id=Inventories) As of June 30, 2025, the Group's total inventories were RMB 340.2 million, remaining relatively stable compared to December 31, 2024, primarily consisting of raw materials, merchandise inventory, and revolving materials Composition of Inventories (RMB) | Item | June 30, 2025 Book Balance | June 30, 2025 Carrying Amount | December 31, 2024 Book Balance | December 31, 2024 Carrying Amount | | :--- | :--- | :--- | :--- | :--- | | Raw Materials | 7,647,249.18 | 7,647,249.18 | 6,717,488.34 | 6,717,488.34 | | Merchandise Inventory | 319,098,962.65 | 319,098,962.65 | 319,282,013.76 | 319,282,013.76 | | Revolving Materials | 13,438,332.21 | 13,438,332.21 | 13,141,138.23 | 13,141,138.23 | | Total | 340,184,544.04 | 340,184,544.04 | 339,140,640.33 | 339,140,640.33 | [Contract Assets](index=13&type=section&id=Contract%20Assets) As of June 30, 2025, the Group's contract assets primarily consisted of construction in progress, with a carrying amount of RMB 32.7 million, an increase of 21.3% from December 31, 2024 Contract Assets (RMB) | Item | June 30, 2025 Book Balance | June 30, 2025 Impairment Provision | June 30, 2025 Carrying Amount | | :--- | :--- | :--- | | Construction in Progress | 34,432,029.11 | 1,721,601.52 | 32,710,427.59 | | **Total** | **34,432,029.11** | **1,721,601.52** | **32,710,427.59** | - As of June 30, 2025, the carrying amount of contract assets was **RMB 32,710,427.59**, an increase from **RMB 26,954,668.97** as of December 31, 2024[29](index=29&type=chunk)[30](index=30&type=chunk) [Intangible Assets](index=14&type=section&id=Intangible%20Assets) As of June 30, 2025, the Group's intangible assets, primarily software usage rights, had a carrying amount of RMB 6.9 million, a decrease from RMB 8.1 million as of December 31, 2024, mainly due to amortization during the period Changes in Intangible Assets (Software Usage Rights) (RMB) | Item | Software Usage Rights | | :--- | :--- | | Period-end Carrying Amount (June 30, 2025) | 6,903,148.73 | | Period-beginning Carrying Amount (December 31, 2024) | 8,108,312.60 | | Increase during the period | 19,690.60 | | Decrease during the period | 15,079.80 | | Amortization for the period | 1,224,854.47 | [Accounts Payable](index=14&type=section&id=Accounts%20Payable) As of June 30, 2025, the Group's total accounts payable was RMB 736.8 million, a slight increase of 0.4% from December 31, 2024, primarily consisting of engineering payments Composition of Accounts Payable (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Engineering Payments | 473,087,180.04 | 468,483,974.58 | | Service Fees | 201,566,648.01 | 193,365,517.78 | | Merchandise Payments | 62,097,616.98 | 71,997,714.58 | | Total | 736,751,445.03 | 733,847,206.94 | Accounts Payable Aging Analysis (RMB) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 261,974,764.05 | 415,258,382.59 | | 1-2 years | 222,656,299.16 | 130,587,491.76 | | 2-3 years | 102,365,271.69 | 85,915,596.41 | | 3-4 years | 68,738,380.30 | 83,581,844.92 | | 4-5 years | 69,735,839.46 | 8,026,282.91 | | Over 5 years | 11,280,890.37 | 10,477,608.35 | | Total | 736,751,445.03 | 733,847,206.94 | [Advances from Customers](index=15&type=section&id=Advances%20from%20Customers) As of June 30, 2025, the Group's advances from customers primarily consisted of rental fees, amounting to RMB 1.46 million, a slight increase from December 31, 2024 Advances from Customers (RMB) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Rental Fees | 1,462,228.14 | 1,392,505.44 | [Contract Liabilities](index=15&type=section&id=Contract%20Liabilities) As of June 30, 2025, the Group's contract liabilities primarily consisted of prepaid property management fees, amounting to RMB 564.0 million, a significant increase of 25.8% from RMB 448.2 million as of December 31, 2024 Contract Liabilities (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepaid Property Management Fees, etc | 564,023,602.39 | 448,197,573.83 | [Other Payables](index=15&type=section&id=Other%20Payables) As of June 30, 2025, the Group's total other payables were RMB 465.0 million, a decrease of 7.0% from December 31, 2024, primarily consisting of other payables with stable dividends payable Other Payables by Nature (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Interest Payable | 0.00 | 0.00 | | Dividends Payable | 7,270.63 | 7,270.63 | | Other Payables | 464,991,512.70 | 499,749,745.29 | | Total | 464,998,783.33 | 499,757,015.92 | [Share Capital](index=16&type=section&id=Share%20Capital) As of June 30, 2025, the Group's total share capital was RMB 376.0 million, unchanged from December 31, 2024, with no changes in share capital during the period Changes in Share Capital (RMB) | Item | Beginning Balance | Changes during the year (+,-) Subtotal | Ending Balance | | :--- | :--- | :--- | :--- | | Total Shares | 376,000,000.00 | 0.00 | 376,000,000.00 | [Capital Reserve](index=16&type=section&id=Capital%20Reserve) As of June 30, 2025, the Group's total capital reserve was RMB 985.8 million, an increase of RMB 1.19 million from December 31, 2024, mainly due to an increase in share premium Changes in Capital Reserve (RMB) | Item | December 31, 2024 | Increase during the period | Decrease during the period | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Share Premium | 906,045,603.32 | 1,187,267.63 | 0.00 | 907,232,870.95 | | Other Capital Reserve | 78,584,601.78 | 0.00 | 0.00 | 78,584,601.78 | | Total | 984,630,205.10 | 1,187,267.63 | 0.00 | 985,817,472.73 | [Surplus Reserve](index=16&type=section&id=Surplus%20Reserve) As of June 30, 2025, the Group's total surplus reserve was RMB 111.0 million, an increase of RMB 6.41 million from December 31, 2024, mainly due to an increase in statutory surplus reserve Changes in Surplus Reserve (RMB) | Item | December 31, 2024 | Increase during the period | Decrease during the period | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Statutory Surplus Reserve | 104,634,931.96 | 6,410,547.64 | 0.00 | 111,045,479.60 | [Operating Revenue, Operating Costs](index=16&type=section&id=Operating%20Revenue%2C%20Operating%20Costs) For the six months ended June 30, 2025, the Group's operating revenue was RMB 1,011.9 million, a year-on-year increase of 1.7%, with operating costs slightly decreasing by 0.37% to RMB 752.6 million Operating Revenue and Operating Costs (RMB) | Item | 2025 Revenue | 2025 Costs | 2024 Revenue | 2024 Costs | | :--- | :--- | :--- | :--- | :--- | | Main Business | 1,008,722,633.29 | 752,062,151.41 | 991,060,287.98 | 754,743,406.62 | | Other Business | 3,134,274.47 | 577,050.67 | 4,107,772.88 | 689,523.27 | | Total | 1,011,856,907.76 | 752,639,202.08 | 995,168,060.86 | 755,432,929.89 | Revenue from Contracts by Category (RMB) | Contract Category | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | Community Services | 725,237,463.00 | 720,716,494.04 | | Commercial & Enterprise Services | 30,732,258.15 | 23,361,226.75 | | City Services | 112,137,842.79 | 85,317,879.12 | | Value-added Services to Property Owners | 143,749,343.82 | 165,772,460.95 | | Total | 1,011,856,907.76 | 995,168,060.86 | - Revenue transferred over time accounted for **93.5%**, indicating that service revenue primarily consists of continuous services[37](index=37&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense was RMB 26.2 million, a year-on-year decrease of 2.9%, with an effective tax rate of approximately 21.7% due to preferential tax rates for "small-profit enterprises" Composition of Income Tax Expense (RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Income Tax | 48,222,734.49 | 44,099,170.67 | | Deferred Income Tax Expense | -22,059,595.76 | -17,163,575.31 | | Total | 26,163,138.73 | 26,935,595.36 | - The effective income tax rate was approximately **21.7%**, lower than the general rate of **25%**, as more subsidiaries qualified as "small-profit enterprises" and enjoyed a **5%** preferential tax rate[38](index=38&type=chunk)[86](index=86&type=chunk) [Return on Net Assets and Earnings Per Share](index=17&type=section&id=Return%20on%20Net%20Assets%20and%20Earnings%20Per%20Share) As of June 30, 2025, the weighted average return on net assets attributable to parent company shareholders was 4.00%, with basic and diluted earnings per share both at RMB 0.24, consistent with the prior year Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets (%) | Basic EPS | Diluted EPS | | :--- | :--- | :--- | :--- | | Net profit attributable to parent company shareholders | 4.00 | 0.24 | 0.24 | | Net profit attributable to parent company shareholders after deducting non-recurring gains and losses | 4.29 | 0.26 | 0.26 | [Dividends](index=17&type=section&id=Dividends) For the six months ended June 30, 2025, the Board of Directors did not recommend the payment of an interim dividend, consistent with the same period in 2024 - The Board of Directors did not recommend the payment of an interim dividend for the six months ended June 30, 2025[40](index=40&type=chunk)[41](index=41&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business performance, financial position, future outlook, and financial risks for the six months ended June 30, 2025, highlighting steady growth in GFA under management and revenue, improved gross profit margin, and active business structure adjustments [Business Review](index=18&type=section&id=Business%20Review) As a nationwide comprehensive property management service provider, the Group managed a GFA of 90.6 million sq.m. across 69 cities in 19 provinces of China as of June 30, 2025, offering diversified services through four business lines and continuously expanding its GFA under management and contracted GFA - As of June 30, 2025, the Group managed **485** property management projects, with a total GFA under management of approximately **90.6 million sq.m.**, covering **69** cities in **19** provinces of China[42](index=42&type=chunk) - During the period, revenue was approximately **RMB 1,011.9 million** (a year-on-year increase of **1.7%**), gross profit was approximately **RMB 259.2 million** (a year-on-year increase of **8.1%**), and net profit was **RMB 94.7 million** (a year-on-year increase of **2.0%**)[43](index=43&type=chunk) [Overview](index=18&type=section&id=Overview) The Group is a nationwide comprehensive property management service provider, with GFA under management of approximately 90.6 million sq.m. and contracted GFA of approximately 101.5 million sq.m. as of June 30, 2025, covering 69 cities in 19 provinces of China - As of June 30, 2025, GFA under management was approximately **90.6 million sq.m.**, and contracted GFA was approximately **101.5 million sq.m.**[42](index=42&type=chunk) - Business covers **69** cities in **19** provinces, municipalities, and autonomous regions of China[42](index=42&type=chunk) [Business Model](index=18&type=section&id=Business%20Model) The Group primarily provides diversified services through four business lines: community services, commercial & enterprise services, city services, and value-added services to property owners, covering the entire property management value chain - Four business lines: Community Services, Commercial & Enterprise Services, City Services, and Value-added Services to Property Owners, forming a comprehensive service system[44](index=44&type=chunk)[48](index=48&type=chunk) - Community services primarily include basic property management and value-added services, with property management fees collected on an all-inclusive basis[44](index=44&type=chunk) - Commercial & enterprise services cover non-residential property management for commercial, government, industrial parks, hotels, schools, and hospitals[48](index=48&type=chunk) [GFA Under Management and Contracted GFA for Community Services and Commercial & Enterprise Services Business Lines](index=19&type=section&id=GFA%20Under%20Management%20and%20Contracted%20GFA%20for%20Community%20Services%20and%20Commercial%20%26%20Enterprise%20Services%20Business%20Lines) As of June 30, 2025, the Group's contracted GFA was approximately 101.5 million sq.m. (up 0.3% YoY) and GFA under management was approximately 90.6 million sq.m. (up 4.6% YoY), with continued expansion into non-residential property types and urban operation services - As of June 30, 2025, contracted GFA was approximately **101.5 million sq.m.** (a year-on-year increase of **0.3%**), and GFA under management was approximately **90.6 million sq.m.** (a year-on-year increase of **4.6%**)[45](index=45&type=chunk) - In the first half of 2025, **42** cooperation agreements were signed with independent third-party property developers to expand non-residential property types and urban operation service projects[46](index=46&type=chunk) Changes in Contracted and GFA Under Management (Thousand sq.m.) | Item | 2025 Contracted GFA | 2025 GFA Under Management | 2024 Contracted GFA | 2024 GFA Under Management | | :--- | :--- | :--- | :--- | :--- | | As at beginning of period | 101,330 | 89,294 | 101,053 | 83,620 | | Newly appointed | 363 | 1,477 | 1,290 | 3,765 | | Terminated | (204) | (204) | (1,159) | (830) | | As at end of period | 101,489 | 90,567 | 101,184 | 86,555 | Total GFA Under Management by Geographical Region (Thousand sq.m.) | Geographical Region | 2025 (Thousand sq.m.) | 2025 (%) | 2024 (Thousand sq.m.) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Bohai Rim Economic Circle | 54,298 | 60.0 | 51,299 | 59.3 | | Yangtze River Delta Region | 17,525 | 19.3 | 17,137 | 19.8 | | Greater Bay Area and surrounding regions | 2,929 | 3.2 | 2,924 | 3.4 | | Central and Western Regions | 15,815 | 17.5 | 15,195 | 17.6 | | Total | 90,567 | 100.0 | 86,555 | 100.0 | GFA Under Management and Number of Projects by Property Type | Property Type | 2025 Number of Projects | 2025 GFA (Thousand sq.m.) | 2024 Number of Projects | 2024 GFA (Thousand sq.m.) | | :--- | :--- | :--- | :--- | :--- | | Community Properties | 385 | 83,104 | 407 | 79,208 | | Non-community Properties - Commercial Properties | 45 | 2,661 | 54 | 2,602 | | Non-community Properties - Public and Other Properties | 23 | 4,802 | 24 | 4,745 | | Subtotal (Non-community Properties) | 68 | 7,463 | 78 | 7,347 | | Total | 453 | 90,567 | 485 | 86,555 | [City Services](index=22&type=section&id=City%20Services) The Group provides urban operation services such as municipal sanitation, waste treatment, landscaping, and water management, having signed 9 urban service operation projects in 6 cities across Hebei and Heilongjiang provinces as of June 30, 2025 - Provides municipal sanitation, waste treatment, landscaping, and water management urban operation services[59](index=59&type=chunk) - As of June 30, 2025, **9** urban service operation projects were signed in **6** cities, covering Hebei Province and Heilongjiang Province[59](index=59&type=chunk) [Value-added Services to Property Owners](index=22&type=section&id=Value-added%20Services%20to%20Property%20Owners) The Group's value-added services to property owners include parking space leasing and sales, new retail, and value-added services for property developers, with the new retail business model upgraded to "chain convenience stores + self-operated front-end warehouses + community group buying" - Value-added services to property owners include parking space leasing and sales, new retail, commercial procurement, home repair, housekeeping services, and value-added services for property developers[60](index=60&type=chunk) - New retail business model upgraded to "chain convenience stores + self-operated front-end warehouses + community group buying," with **83** physical stores and over **1.24 million** registered users as of June 30, 2025[62](index=62&type=chunk) - To counter the downturn in the real estate industry, new businesses such as engineering maintenance, home decoration, landscape maintenance, and direct drinking water services are actively being deployed for delivered communities, and renovation and maintenance services for public buildings, municipal facilities, and industrial parks are being expanded[64](index=64&type=chunk) [Future Outlook](index=23&type=section&id=Future%20Outlook) Looking ahead to the second half of 2025, the Group will continue to be customer-centric, enhance service quality and brand influence, intensify market expansion, diversify its business, and strengthen financial control and talent development - Continue to uphold a customer-centric philosophy, enhancing service quality, brand influence, and market share[65](index=65&type=chunk) - Diversify business, strategically invest in environmental sanitation, medical aesthetics, and tourism accommodation, deploy new businesses such as government public construction and city services, and optimize revenue structure[65](index=65&type=chunk) - Continuously improve the "full life cycle, full chain service" system, promoting car wash and beauty, convenience kiosks, real estate brokerage, community health and wellness, and other businesses[66](index=66&type=chunk) - Develop a new health and wellness brand "Linlin Yuehu," offering one-stop, comprehensive health and wellness services[66](index=66&type=chunk) - Strengthen financial control, enhance risk resistance, and cultivate and introduce professional talent, promoting informatization construction[66](index=66&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) The Group's revenue increased by 1.7% year-on-year to RMB 1,011.9 million, gross profit by 8.1% to RMB 259.2 million, and gross profit margin improved by 1.5 percentage points to 25.6%, while net profit increased by 2.0% despite a slight 1.9% decrease in profit attributable to owners of the parent company [Revenue](index=24&type=section&id=Revenue) The Group's total revenue for the period was RMB 1,011.9 million, a year-on-year increase of 1.7%, with significant growth in commercial & enterprise services and city services, while value-added services to property owners revenue decreased due to business optimization Revenue by Business Line (RMB Thousand) | Business Line | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Community Services | 725,237 | 720,717 | 0.6 | | Commercial & Enterprise Services | 30,732 | 23,361 | 31.6 | | City Services | 112,138 | 85,318 | 31.4 | | Value-added Services to Property Owners | 143,749 | 165,773 | -13.3 | | Total | 1,011,857 | 995,168 | 1.7 | - Revenue from value-added services to property owners decreased by **13.3%**, mainly due to the optimization of new retail business layout, streamlining product categories, shifting to online and front-end warehouse sales, and the transformation of home decoration business from new homes to existing homes[70](index=70&type=chunk) [Community Services](index=26&type=section&id=Community%20Services) Community services revenue increased by 0.6% year-on-year to RMB 725.2 million, with basic property management services accounting for 96.6%, primarily from properties developed by Rongsheng Group, and the Bohai Rim Economic Circle remaining the main revenue source Community Services Revenue Composition (RMB Thousand) | Item | 2025 | 2025 (%) | 2024 | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Basic Property Management Services | 700,549 | 96.6 | 698,153 | 96.9 | | Other Services | 24,688 | 3.3 | 22,563 | 3.1 | | Total | 725,237 | 100.0 | 720,716 | 100.0 | Basic Property Management Services Revenue by Property Developer Type (RMB Thousand) | Item | 2025 | 2025 (%) | 2024 | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Properties developed by Rongsheng Group | 692,676 | 98.9 | 691,252 | 99.0 | | Properties developed by independent third-party property developers | 7,873 | 1.1 | 6,901 | 1.0 | | Total | 700,549 | 100.0 | 698,153 | 100.0 | Basic Property Management Services Revenue by Geographical Coverage (RMB Thousand) | Region | 2025 | 2025 (%) | 2024 | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Bohai Rim Economic Circle | 408,113 | 58.3 | 412,303 | 59.1 | | Yangtze River Delta Region | 127,075 | 18.1 | 126,153 | 18.1 | | Greater Bay Area and surrounding regions | 35,393 | 5.1 | 29,681 | 4.3 | | Central and Western Regions | 129,968 | 18.6 | 130,016 | 18.6 | | Total | 700,549 | 100.0 | 698,153 | 100.0 | [Commercial & Enterprise Services](index=27&type=section&id=Commercial%20%26%20Enterprise%20Services) Commercial & enterprise services revenue increased by 31.6% year-on-year to RMB 30.7 million, primarily driven by the Group's active expansion of new projects - Commercial & enterprise services revenue increased by **31.6%** to **RMB 30.7 million**, mainly due to active business expansion and an increase in new projects[70](index=70&type=chunk)[77](index=77&type=chunk) [City Services](index=27&type=section&id=City%20Services) City services revenue increased by 31.4% year-on-year to RMB 112.1 million, primarily due to the company's active expansion of regions and projects - City services revenue increased by **31.4%** to **RMB 112.1 million**, mainly due to the company's active expansion of regions and projects[70](index=70&type=chunk)[78](index=78&type=chunk) [Value-added Services to Property Owners](index=28&type=section&id=Value-added%20Services%20to%20Property%20Owners) Revenue from value-added services to property owners decreased by 13.3% year-on-year to RMB 143.7 million, with a decline in living services revenue partially offset by a slight increase in value-added services for property developers Value-added Services to Property Owners Revenue Composition (RMB Thousand) | Item | 2025 | 2025 (%) | 2024 | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Parking Space Leasing and Sales Services | 16,037.0 | 11.2 | 18,474.2 | 11.1 | | Living Services | 71,962.2 | 50.1 | 92,700.0 | 55.9 | | Value-added Services for Property Developers | 55,750.2 | 38.8 | 54,598.3 | 32.9 | | Total | 143,749.4 | 100.0 | 165,772.5 | 100.0 | - Revenue from value-added services to property owners decreased by **13.3%**, mainly due to the continuous optimization of the new retail business in the living services segment, streamlining product categories, shifting to online and instant retail, and the transformation of home decoration business[70](index=70&type=chunk) [Cost of Sales](index=28&type=section&id=Cost%20of%20Sales) The Group's cost of sales decreased by 0.37% year-on-year to RMB 752.6 million, primarily due to effective cost control measures - Cost of sales decreased by approximately **0.37%** from **RMB 755.4 million** to **RMB 752.6 million**, primarily due to cost control[81](index=81&type=chunk) [Gross Profit and Gross Profit Margin](index=29&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's gross profit increased by 8.1% year-on-year to RMB 259.2 million, with gross profit margin improving from 24.1% to 25.6%, mainly due to business expansion and strategic adjustments in value-added services to property owners Gross Profit and Gross Profit Margin by Business Line (RMB Thousand) | Category | 2025 Gross Profit | 2025 Gross Profit Margin (%) | 2024 Gross Profit | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Community Services | 164,987 | 22.7 | 163,296 | 22.7 | | Commercial & Enterprise Services | 5,988 | 19.5 | 4,254 | 18.2 | | City Services | 26,457 | 23.6 | 16,499 | 19.3 | | Value-added Services to Property Owners | 61,786 | 43.0 | 55,686 | 33.6 | | Total | 259,218 | 25.6 | 239,735 | 24.1 | - Gross profit margin increased by **1.5 percentage points** to **25.6%**, mainly due to business expansion and adjustments to the business model of value-added services to property owners, eliminating low-margin businesses[83](index=83&type=chunk) [Selling Expenses](index=29&type=section&id=Selling%20Expenses) The Group's selling expenses decreased by 4.3% year-on-year to RMB 2.7 million, primarily due to a slight reduction in marketing and expansion expenses - Selling expenses decreased by **4.3%** to **RMB 2.7 million**, mainly due to a slight reduction in marketing and expansion expenses[84](index=84&type=chunk) [Administrative Expenses](index=30&type=section&id=Administrative%20Expenses) The Group's administrative expenses decreased by 9.3% year-on-year to RMB 51.4 million, primarily due to streamlining functional personnel and reducing related expenses, achieving cost reduction and efficiency improvement - Administrative expenses decreased by **9.3%** to **RMB 51.4 million**, mainly due to streamlining functional personnel and reducing functional personnel expenses, achieving cost reduction and efficiency improvement[85](index=85&type=chunk) [Income Tax Expense](index=30&type=section&id=Income%20Tax%20Expense) The Group's income tax expense decreased by 2.9% year-on-year to RMB 26.2 million, with an effective tax rate of approximately 21.7%, primarily due to more subsidiaries qualifying for "small-profit enterprise" tax benefits - Income tax expense decreased by **2.9%** to **RMB 26.2 million**, with an effective income tax rate of approximately **21.7%**, lower than the general rate of **25%**, as more subsidiaries qualified as "small-profit enterprises"[86](index=86&type=chunk) [Profit for the Period](index=30&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period increased by 2.0% to RMB 94.7 million, primarily due to an increase in gross profit contribution of RMB 19.5 million, driven by business expansion and revenue growth in community and commercial & enterprise services - Profit for the period increased by **2.0%** to **RMB 94.7 million**, mainly due to an increase in gross profit contribution of **RMB 19.5 million**, driven by business expansion and revenue growth in community and commercial & enterprise services[87](index=87&type=chunk) [Profit Attributable to Owners of the Company](index=30&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) Profit attributable to owners of the company for the period was approximately RMB 89.4 million, a decrease of approximately 1.9% compared to the same period in 2024 - Profit attributable to owners of the company was approximately **RMB 89.4 million**, a year-on-year decrease of approximately **1.9%**[88](index=88&type=chunk) [Property, Plant and Equipment, Right-of-Use Assets and Long-term Deferred Expenses](index=31&type=section&id=Property%2C%20Plant%20and%20Equipment%2C%20Right-of-Use%20Assets%20and%20Long-term%20Deferred%20Expenses) As of June 30, 2025, the Group's property, plant and equipment, right-of-use assets, and long-term deferred expenses totaled approximately RMB 53.4 million, a decrease of RMB 9.1 million from December 31, 2024, mainly due to depreciation and amortization of assets - Property, plant and equipment, right-of-use assets, and long-term deferred expenses totaled approximately **RMB 53.4 million**, a decrease of **RMB 9.1 million** from December 31, 2024, mainly due to depreciation and amortization of assets during the period[89](index=89&type=chunk) [Investment Properties](index=31&type=section&id=Investment%20Properties) As of June 30, 2025, the Group's investment properties were approximately RMB 69.3 million, a slight decrease from December 31, 2024, but remained relatively stable - Investment properties were approximately **RMB 69.3 million**, a slight decrease from December 31, 2024, remaining relatively stable[90](index=90&type=chunk) [Intangible Assets](index=31&type=section&id=Intangible%20Assets) As of June 30, 2025, the Group's intangible assets were approximately RMB 6.9 million, a decrease from December 31, 2024, mainly due to amortization of intangible assets during the period - Intangible assets were approximately **RMB 6.9 million**, a decrease from December 31, 2024, mainly due to amortization of intangible assets during the period[91](index=91&type=chunk) [Inventories](index=31&type=section&id=Inventories) As of June 30, 2025, the Group's inventories were approximately RMB 340.2 million, a slight increase from December 31, 2024, remaining relatively stable, and primarily including raw materials, convenience store merchandise, and parking spaces acquired through debt settlement - Inventories were approximately **RMB 340.2 million**, a slight increase from December 31, 2024, remaining relatively stable[92](index=92&type=chunk) - Inventories primarily include raw materials, convenience store merchandise, revolving materials, low-value consumables, and parking spaces acquired through debt settlement agreements[92](index=92&type=chunk) [Accounts Receivable, Other Receivables and Prepayments](index=31&type=section&id=Accounts%20Receivable%2C%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, the Group's accounts receivable, other receivables, and prepayments totaled approximately RMB 3,040.8 million, an increase of approximately 8.4% from December 31, 2024, driven by revenue growth and increased prepayments for engineering and outsourcing service contracts - Accounts receivable, other receivables, and prepayments totaled approximately **RMB 3,040.8 million**, an increase of approximately **8.4%** from December 31, 2024[93](index=93&type=chunk) - Accounts receivable were approximately **RMB 2,324.1 million**, an increase of approximately **9.8%**, mainly due to revenue growth during the period[93](index=93&type=chunk) - Prepayments were approximately **RMB 132.2 million**, an increase of approximately **19.5%**, mainly due to increased prepayments for engineering services and outsourcing service contracts[94](index=94&type=chunk) [Accounts Payable and Other Payables](index=32&type=section&id=Accounts%20Payable%20and%20Other%20Payables) As of June 30, 2025, the Group's accounts payable and other payables totaled approximately RMB 1,428.6 million, a decrease of approximately 1.7% from December 31, 2024, mainly due to settlement of energy payables, refund of decoration deposits, and a reduction in employee numbers - Accounts payable and other payables totaled approximately **RMB 1,428.6 million**, a decrease of approximately **1.7%** from December 31, 2024[95](index=95&type=chunk) - Other payables decreased by approximately **7.0%**, mainly due to the settlement of energy payables and decoration deposit refunds[96](index=96&type=chunk) - Salaries and wages payable decreased by approximately **2.6%**, mainly due to a reduction in employee numbers[96](index=96&type=chunk) [Working Capital](index=33&type=section&id=Working%20Capital) The Group continuously meets its working capital, capital expenditure, and other capital requirements through cash generated from operations and net proceeds from its listing - Working capital sources primarily include cash generated from operations and net proceeds from the H-share listing[97](index=97&type=chunk) [Net Current Assets](index=33&type=section&id=Net%20Current%20Assets) As of June 30, 2025, the Group's net current assets were approximately RMB 1,919.6 million, an increase of approximately 4.6% from December 31, 2024, with both total current assets and total current liabilities increasing - Net current assets were approximately **RMB 1,919.6 million**, an increase of approximately **4.6%** from December 31, 2024[98](index=98&type=chunk) - Total current assets increased by approximately **4.7%** to **RMB 3,956.5 million**, and total current liabilities increased by approximately **4.9%** to **RMB 2,036.9 million**[98](index=98&type=chunk) [Cash and Cash Equivalents](index=33&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the Group's cash and cash equivalents were approximately RMB 494.5 million, a decrease of approximately 10.7% from December 31, 2024, mainly due to reduced net operating cash flow resulting from business expansion and new business investments - Cash and cash equivalents were approximately **RMB 494.5 million**, a decrease of approximately **10.7%** from December 31, 2024[99](index=99&type=chunk) - The decrease was mainly due to the Group's expanded scale and investment in new businesses, leading to increased procurement of materials and labor costs, resulting in a decrease in overall net operating cash flow[99](index=99&type=chunk) [Indebtedness](index=33&type=section&id=Indebtedness) As of June 30, 2025, the Group's total outstanding bank loans were RMB 3.0 million, consistent with December 31, 2024, and are expected to be repaid in September 2025 - As of June 30, 2025, total outstanding bank loans were **RMB 3.0 million**, expected to be repaid in September 2025[100](index=100&type=chunk) [Pledge of Assets](index=33&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledged assets, consistent with December 31, 2024 - As of June 30, 2025, the Group had no pledged assets[101](index=101&type=chunk) [Financial Risks](index=33&type=section&id=Financial%20Risks) The Group faces foreign exchange risk, credit risk, and liquidity risk, which it manages by monitoring exchange rates, depositing funds with highly-rated banks, investing in high-rated wealth management products, and assessing the financial condition of related parties - The Group faces foreign exchange risk, credit risk, and liquidity risk, focusing on mitigating potential adverse impacts[102](index=102&type=chunk) [Foreign Exchange Risk](index=34&type=section&id=Foreign%20Exchange%20Risk) The Group's operations are primarily conducted in RMB, resulting in minimal foreign exchange risk, and while no foreign currency hedging policy is currently implemented, management will closely monitor it - Operations are primarily conducted in RMB, so foreign exchange risk has little impact, and no foreign currency hedging policy is currently implemented[103](index=103&type=chunk) [Credit Risk](index=34&type=section&id=Credit%20Risk) The Group's credit risk primarily arises from accounts receivable, other receivables, contract assets, bank cash deposits, and financial assets at fair value through profit or loss, with minimal expected risk from bank deposits and financial assets due to high credit ratings and liquidity - Credit risk arises from accounts receivable, other receivables, contract assets, bank cash deposits, and financial assets at fair value through profit or loss[104](index=104&type=chunk) - Bank cash deposits and financial assets are expected to have no significant credit risk, as they are deposited with high credit rating banks or invested in high-liquidity wealth management products[104](index=104&type=chunk)[105](index=105&type=chunk) - Adequate provision for doubtful accounts from related parties has been considered, and asset-for-debt swaps will be considered if recovery is not possible[105](index=105&type=chunk) [Liquidity Risk](index=35&type=section&id=Liquidity%20Risk) The Group manages liquidity risk by monitoring and maintaining sufficient cash and cash equivalents to support operations and mitigate the impact of cash flow fluctuations - Liquidity risk is managed by monitoring and maintaining sufficient cash and cash equivalents[107](index=107&type=chunk) [Contingent Liabilities and Litigation](index=35&type=section&id=Contingent%20Liabilities%20and%20Litigation) As of June 30, 2025, the Group had no significant contingent liabilities or litigation - As of June 30, 2025, the Group had no significant contingent liabilities or litigation[108](index=108&type=chunk) [Commitments](index=35&type=section&id=Commitments) As of June 30, 2025, the Group's lease commitments as a lessee were approximately RMB 19.3 million, a decrease from December 31, 2024 - As of June 30, 2025, the Group's lease commitments as a lessee were approximately **RMB 19.3 million**, a decrease of approximately **RMB 5.3 million** from December 31, 2024[109](index=109&type=chunk) [Key Financial Ratios](index=35&type=section&id=Key%20Financial%20Ratios) As of June 30, 2025, the Group's current ratio was 1.9 times, and its asset-liability ratio was approximately 47.2%, both broadly stable compared to December 31, 2024 Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.9 times | Approx 1.9 times | | Asset-Liability Ratio | Approx 47.2% | Approx 47.1% | [Significant Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=35&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) On June 18, 2025, the Company entered into a debt offset framework agreement with Rongsheng Development, conditionally agreeing to acquire properties with a total consideration of approximately RMB 1.07 billion to offset outstanding receivables, a transaction approved at the shareholders' meeting on August 8, 2025 - On June 18, 2025, the Company entered into a debt offset framework agreement with Rongsheng Development, conditionally agreeing to acquire properties (including parking spaces, storage rooms, and residential/commercial units) with a total consideration of approximately **RMB 1.07 billion** to offset outstanding receivables owed to the Group[111](index=111&type=chunk) - The debt offset transaction was approved by the Company at the extraordinary general meeting held on August 8, 2025[111](index=111&type=chunk) [Future Plans for Material Investments or Capital Assets](index=36&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the date of this announcement, the Group has not entered into any agreements for material investments or capital assets, nor does it have any other related plans, with future potential investment opportunities to undergo feasibility studies and be funded by internal resources - As of the date of this announcement, the Group has not entered into any agreements or plans for material investments or capital assets[113](index=113&type=chunk) - Potential investment opportunities will undergo feasibility studies and be funded by internal resources, including net proceeds from the listing[113](index=113&type=chunk) [Use of Proceeds from Listing](index=36&type=section&id=Use%20of%20Proceeds%20from%20Listing) The net proceeds from the listing were approximately HKD 1,168 million, with a Board resolution on June 16, 2023, reallocating certain unutilized proceeds to strategic acquisitions, enriching community value-added services, and for working capital and general corporate purposes - Net proceeds from the listing were approximately **HKD 1,168 million**[114](index=114&type=chunk) - On June 16, 2023, the Board resolved to change the use of certain net proceeds, reallocating approximately **HKD 385.4 million**[114](index=114&type=chunk) - The revised uses include: **40%** for strategic investments and acquisitions, **20%** for enriching community value-added services, **15%** for enhancing information technology infrastructure, and **25%** for general business purposes and working capital[116](index=116&type=chunk) [Employees and Remuneration Policy](index=37&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 7,290 full-time employees, with employee costs of approximately RMB 350.75 million, and has established a competitive incentive and performance appraisal system while focusing on talent development through extensive training programs - As of June 30, 2025, the Group had **7,290** full-time employees, with employee costs of approximately **RMB 350.75 million** during the period[117](index=117&type=chunk) - Established competitive incentive and performance appraisal systems, including equity incentives and performance-based remuneration[118](index=118&type=chunk) - Focused on talent development, organizing nearly **619** training sessions for approximately **23,189** participants during the period[119](index=119&type=chunk) [Other Information](index=37&type=section&id=Other%20Information) This section covers significant post-reporting period events, compliance with corporate governance code, standard code for securities transactions by directors and supervisors, purchase/sale/redemption of listed securities, audit committee responsibilities, interim dividend recommendation, and publication of interim results [Significant Events After Reporting Period](index=37&type=section&id=Significant%20Events%20After%20Reporting%20Period) Except for the approval of the 2025 Debt Offset Framework Agreement at the extraordinary general meeting on August 8, 2025, the Group had no other significant post-reporting period events impacting it as of the date of this announcement - Except for the approval of the **2025 Debt Offset Framework Agreement** at the extraordinary general meeting on August 8, 2025, there were no other significant post-reporting period events[120](index=120&type=chunk) [Compliance with Corporate Governance Code](index=37&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules during the period - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules during the period[121](index=121&type=chunk)[122](index=122&type=chunk) [Compliance with the Standard Code for Securities Transactions by Directors and Supervisors](index=38&type=section&id=Compliance%20with%20the%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as the code of conduct for securities transactions by directors, supervisors, and employees, with all directors and supervisors confirming compliance during the period - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as the code of conduct for securities transactions by directors, supervisors, and employees[123](index=123&type=chunk) - All directors and supervisors confirmed compliance with the Standard Code and the Securities Dealing Code during the period, with no violations found[123](index=123&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[124](index=124&type=chunk) - As of June 30, 2025, the Company held no treasury shares[124](index=124&type=chunk) [Audit Committee](index=38&type=section&id=Audit%20Committee) The Audit Committee comprises three members, with Mr. Xu Shaohong as Chairman and Mr. Jin Wenhui possessing appropriate accounting qualifications, and has reviewed the Group's interim results and adopted accounting standards, reaching an agreement with management - The Audit Committee comprises three members, with Mr. Xu Shaohong as Chairman, and Mr. Jin Wenhui possessing appropriate accounting qualifications[125](index=125&type=chunk) - The Committee has reviewed the Group's interim results for the period and the accounting standards adopted, reaching an agreement with management[125](index=125&type=chunk) [Interim Dividend](index=38&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[126](index=126&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=39&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report) This announcement has been published on the HKEX website and the Company's website, and the Company's interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.roiserv.com)[127](index=127&type=chunk) - The Company's interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and Company websites in due course[127](index=127&type=chunk)

[Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the company's financial performance, highlighting revenue, gross profit, and various expenses leading to the loss for the period [Revenue](index=1&type=section&id=Revenue) Revenue for the six months ended June 30, 2025, decreased by approximately 2% to HKD 98,234 thousand compared to the prior year | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 98,234 | 100,511 | -2.27% | [Gross Profit](index=1&type=section&id=Gross%20Profit) Gross profit declined by approximately 11% to HKD 14,972 thousand for the six months ended June 30, 2025 | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 14,972 | 16,811 | -10.94% | [Other Income and Net Other Losses](index=1&type=section&id=Other%20Income%20and%20Net%20Other%20Losses) Other income decreased, while net other losses significantly reduced by 91%, primarily due to the absence of property, plant, and equipment disposal losses from the prior year | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 68 | 118 | -42.37% | | Net Other Losses | (839) | (9,263) | -90.94% | - The significant reduction in net other losses was primarily due to a loss of approximately **HKD 8,583 thousand** from the disposal of property, plant, and equipment in the 2024 financial period, which was related to the relocation of production facilities due to environmental requirements[32](index=32&type=chunk) [Selling and Distribution Expenses](index=1&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by 16% to HKD 17,654 thousand, mainly attributable to lower transportation costs | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | (17,654) | (20,927) | -15.64% | - The decrease in selling and distribution expenses was primarily due to reduced transportation costs[33](index=33&type=chunk) [Administrative Expenses](index=1&type=section&id=Administrative%20Expenses) Administrative expenses slightly increased by 1% to HKD 10,000 thousand, mainly driven by higher legal and professional fees | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | (10,000) | (9,861) | 1.41% | - The increase in administrative expenses was mainly due to higher legal and professional expenses[34](index=34&type=chunk) [Finance Costs](index=1&type=section&id=Finance%20Costs) Finance costs significantly increased by 113% to HKD 1,261 thousand, primarily due to higher interest on interest-bearing borrowings and lease liabilities | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | (1,261) | (592) | 113.01% | - The increase in finance costs was primarily due to higher interest on interest-bearing borrowings (excluding unsecured bonds) and lease liabilities[35](index=35&type=chunk) [Loss Before Tax](index=2&type=section&id=Loss%20Before%20Tax) Loss before tax narrowed to HKD 15,122 thousand, a 38% reduction from the prior year, mainly benefiting from a significant decrease in net other losses | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Before Tax | (15,122) | (24,459) | -38.18% | - The reduction in loss before tax was primarily due to a decrease in net other losses compared to the prior year[36](index=36&type=chunk) [Loss for the Period](index=2&type=section&id=Loss%20for%20the%20Period) Loss for the period narrowed to HKD 15,122 thousand, a 20.8% decrease from the prior year, with loss attributable to owners of the Company at HKD 11,043 thousand | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (15,122) | (19,099) | -20.82% | | Loss for the Period Attributable to Owners of the Company | (11,043) | (13,926) | -20.70% | [Loss Per Share](index=2&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share improved to HKD 5.12 cents, compared to HKD 7.75 cents in the prior year | Metric | June 30, 2025 (HKD cents) | June 30, 2024 (HKD cents) | Change (%) | | :--- | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (5.12) | (7.75) | -33.94% | [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) This section details the total comprehensive loss for the period, including other comprehensive income items [Total Comprehensive Loss for the Period](index=3&type=section&id=Total%20Comprehensive%20Loss%20for%20the%20Period) Total comprehensive loss for the period decreased by 34.86% to HKD 13,913 thousand, mainly due to a favorable change in exchange differences on translation of overseas operations from loss to gain | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Comprehensive Loss for the Period | (13,913) | (21,359) | -34.86% | | Exchange Differences on Translation of Overseas Operations | 1,209 | (2,260) | N/A (from loss to gain) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section provides a snapshot of the company's assets, liabilities, and equity at the end of the reporting period [Non-current Assets](index=4&type=section&id=Non-current%20Assets) Total non-current assets decreased by 4% to HKD 118,419 thousand compared to December 31, 2024 | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 77,174 | 79,991 | -3.52% | | Right-of-use Assets | 41,193 | 43,347 | -4.97% | | Total Non-current Assets | 118,419 | 123,389 | -4.03% | [Current Assets](index=4&type=section&id=Current%20Assets) Total current assets decreased by 21.68% to HKD 123,535 thousand, primarily due to reductions in trade receivables and prepayments | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Inventories | 11,292 | 11,823 | -4.49% | | Trade and Bills Receivables | 96,090 | 114,453 | -16.04% | | Prepayments, Deposits and Other Receivables | 4,158 | 17,350 | -76.00% | | Cash and Cash Equivalents | 8,384 | 10,593 | -20.95% | | Total Current Assets | 123,535 | 157,728 | -21.68% | [Current Liabilities](index=4&type=section&id=Current%20Liabilities) Total current liabilities decreased by 11% to HKD 170,608 thousand, mainly driven by reductions in trade payables and interest-bearing borrowings | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 67,625 | 91,836 | -26.47% | | Accruals and Other Payables | 85,107 | 76,514 | 11.23% | | Interest-bearing Borrowings | 8,294 | 11,465 | -27.66% | | Total Current Liabilities | 170,608 | 191,591 | -10.95% | [Net Current Liabilities](index=5&type=section&id=Net%20Current%20Liabilities) Net current liabilities expanded by 39% to HKD 47,073 thousand, indicating increased liquidity pressure | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Liabilities | (47,073) | (33,863) | 38.99% | - Current liabilities exceeded current assets by approximately **HKD 47,073 thousand**, indicating a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern[10](index=10&type=chunk) [Non-current Liabilities](index=5&type=section&id=Non-current%20Liabilities) Total non-current liabilities decreased by 39.56% to HKD 6,517 thousand, primarily due to reductions in lease liabilities and interest-bearing borrowings | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Lease Liabilities | 2,709 | 4,912 | -44.85% | | Interest-bearing Borrowings | 3,808 | 5,872 | -35.29% | | Total Non-current Liabilities | 6,517 | 10,784 | -39.56% | [Net Assets and Total Equity](index=5&type=section&id=Net%20Assets%20and%20Total%20Equity) Net assets and total equity decreased by 17.67% to HKD 64,829 thousand, with equity attributable to owners of the Company decreasing by approximately 16% | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Assets | 64,829 | 78,742 | -17.67% | | Equity Attributable to Owners of the Company | 52,033 | 62,007 | -16.10% | | Total Equity | 64,829 | 78,742 | -17.67% | - Equity attributable to owners of the Company decreased by approximately **16%** compared to December 31, 2024[38](index=38&type=chunk) [Notes](index=6&type=section&id=Notes) This section provides detailed explanations and disclosures regarding the financial statements [Company Information](index=6&type=section&id=Company%20Information) Sunway International Holdings Limited is incorporated in Bermuda, listed on the Hong Kong Stock Exchange, with its principal place of business in Hong Kong, and its controlling shareholder is Full Harvest Group Limited, ultimately controlled by Mr. Chim Pui Chung - The Company is a limited company incorporated in Bermuda, with its shares listed on The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) - The controlling shareholder is Full Harvest Group Limited, which is ultimately controlled by Mr. Chim Pui Chung[7](index=7&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The interim financial information is prepared in accordance with HKAS 34 and the Listing Rules, presented on a historical cost basis, with management assessing going concern and implementing measures to mitigate liquidity pressure - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, adopting the same accounting policies as the 2024 annual financial statements, except for specific amendments[8](index=8&type=chunk) - The Group is principally engaged in the manufacture and trading of pre-stressed high-strength concrete piles, ready-mixed commercial concrete, autoclaved aerated concrete products, and ecological concrete products, along with related processing income[9](index=9&type=chunk) - For the six months ended June 30, 2025, the Group incurred a net loss of approximately **HKD 15,122 thousand**, with current liabilities exceeding current assets by approximately **HKD 47,073 thousand**, indicating a material uncertainty regarding its ability to continue as a going concern[10](index=10&type=chunk) - The Board has reviewed cash flow forecasts and implemented measures to mitigate liquidity pressure, including actively recovering receivables, strictly monitoring customer credit, implementing cost controls, and considering other financing arrangements[10](index=10&type=chunk)[12](index=12&type=chunk) [Application of Revised Hong Kong Financial Reporting Standards](index=8&type=section&id=Application%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The application of revised HKFRS accounting standards in this interim period had no significant impact on the Group's financial position or performance - The application of revised Hong Kong Financial Reporting Standards had no significant impact on the Group's financial position and performance[13](index=13&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group operates in a single reportable segment: the sale and manufacture of pre-stressed high-strength concrete piles and other building materials, with all revenue and non-current assets derived from China - The Group has a single reportable and operating segment: the sale and manufacture of pre-stressed high-strength concrete piles and other building materials[15](index=15&type=chunk) - All of the Group's revenue and non-current assets are generated from the People's Republic of China[15](index=15&type=chunk) Revenue from Major Customers (HKD thousands) | Customer | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Customer A | 22,029 | — | | Customer B | 10,455 | N/A | | Customer C | — | 11,951 | | Customer D | — | 11,421 | [Revenue (Notes)](index=9&type=section&id=Revenue_%28Notes%29) Revenue primarily consists of contract revenue recognized at a point in time from the sale of pre-stressed high-strength concrete piles and other products Revenue by Source (HKD thousands) | Revenue Source | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Sale of Pre-stressed High-strength Concrete Piles and Others | 98,234 | 100,511 | [Net Other Losses (Notes)](index=9&type=section&id=Net%20Other%20Losses_%28Notes%29) Net other losses primarily include provisions for compensation and legal fees for legal cases, with the prior year also including losses from the disposal of property, plant, and equipment Components of Net Other Losses (HKD thousands) | Item | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Compensation and Provision for Legal Cases | (839) | (821) | | Loss on Disposal of Property, Plant and Equipment | — | (8,583) | [Finance Costs (Notes)](index=10&type=section&id=Finance%20Costs_%28Notes%29) Finance costs, totaling HKD 1,261 thousand in 2025, increased from HKD 592 thousand in 2024, mainly comprising interest on interest-bearing borrowings, unsecured bonds, and lease liabilities Components of Finance Costs (HKD thousands) | Item | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on Interest-bearing Borrowings (excluding unsecured bonds) | 720 | 406 | | Interest on Unsecured Bonds | 112 | 112 | | Interest on Lease Liabilities | 429 | 74 | | **Total** | **1,261** | **592** | [Loss Before Tax (Notes)](index=10&type=section&id=Loss%20Before%20Tax_%28Notes%29) Loss before tax is calculated after deducting items such as depreciation of property, plant and equipment, cost of inventories sold, and staff costs Items Deducted in Loss Before Tax Calculation (HKD thousands) | Item | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 3,849 | 5,197 | | Depreciation of Right-of-use Assets | 3,406 | 836 | | Cost of Inventories Sold | 55,070 | 54,011 | | Staff Costs (including directors' emoluments) | 13,061 | 12,466 | [Income Tax Credit](index=11&type=section&id=Income%20Tax%20Credit) There was no income tax credit for the 2025 period, while 2024 included an over-provision for prior years, and no income tax provision was made due to the absence of assessable profits in Hong Kong and China Income Tax Credit (HKD thousands) | Item | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Current Tax — China Corporate Income Tax — Over-provision in Prior Years | — | (5,360) | - No provision for Hong Kong profits tax and China corporate income tax was made as the Group had no assessable profits in Hong Kong and China[21](index=21&type=chunk) [Loss Per Share (Notes)](index=11&type=section&id=Loss%20Per%20Share_%28Notes%29) Basic and diluted loss per share are calculated based on the loss attributable to owners of the Company and the weighted average number of ordinary shares, with convertible bonds not included due to their anti-dilutive effect Loss Per Share Calculation Inputs (HKD thousands) | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company | (11,043) | (13,926) | | Weighted Average Number of Ordinary Shares (thousands) | 215,520 | 179,600 | - Outstanding convertible bonds had an anti-dilutive effect on basic loss per share and were therefore not assumed to be converted for diluted loss per share calculation[24](index=24&type=chunk) [Dividends](index=12&type=section&id=Dividends) The Board of Directors did not declare or propose any interim dividend for the six months ended June 30, 2025 - No interim dividend was declared or proposed for the six months ended June 30, 2025[25](index=25&type=chunk) [Trade and Bills Receivables](index=12&type=section&id=Trade%20and%20Bills%20Receivables) Trade and bills receivables, net of allowance for credit losses, totaled HKD 96,090 thousand, a 16% decrease from December 31, 2024, with credit terms generally ranging from one to three months, extendable to six months for certain customers Trade and Bills Receivables (HKD thousands) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables (net of allowance for credit losses) | 96,090 | 112,373 | -14.49% | | Bills Receivables (net of allowance for credit losses) | 0 | 2,080 | -100% | | **Total** | **96,090** | **114,453** | **-16.04%** | - The credit period for trade and bills receivables generally ranges from one to three months from the invoice date, extendable to six months for customers with good relationships[26](index=26&type=chunk) Ageing Analysis of Trade and Bills Receivables (HKD thousands) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 29,257 | 57,028 | | 4 to 6 months | 18,689 | 32,259 | | 7 to 12 months | 34,861 | 25,166 | | Over 12 months | 13,283 | — | [Trade Payables](index=13&type=section&id=Trade%20Payables) Total trade payables decreased by 26.47% to HKD 67,625 thousand, with an average credit period of one month Trade Payables (HKD thousands) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade Payables | 67,625 | 91,836 | - The average credit period granted by suppliers is one month[28](index=28&type=chunk) Ageing Analysis of Trade Payables (HKD thousands) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 19,060 | 56,256 | | 4 to 6 months | 14,292 | 25,449 | | 7 to 12 months | 29,345 | 7,565 | | Over 12 months | 4,928 | 2,566 | [Pledged Assets](index=13&type=section&id=Pledged%20Assets) The Group pledged buildings, plant and machinery, and right-of-use assets with a carrying value of HKD 67,783 thousand to secure interest-bearing borrowings, with additional guarantees from a related company and non-controlling interests Pledged Assets (HKD thousands) | Pledged Assets | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Buildings | 38,799 | 42,115 | | Plant and Machinery | 7,979 | 8,691 | | Right-of-use Assets | 21,005 | 21,157 | | **Total** | **67,783** | **71,963** | - Interest-bearing borrowings (excluding unsecured bonds) are secured by land and buildings held by a related company of one of the Group's subsidiaries, personal guarantees provided by subsidiary directors, and guarantees provided by the Group's non-controlling interests[29](index=29&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's performance, financial position, and future outlook [Results and Operations Review](index=14&type=section&id=Results%20and%20Operations%20Review) The Group's building materials business revenue slightly decreased due to a weak market, but net other losses significantly reduced, while selling and distribution expenses decreased, administrative expenses slightly increased, and finance costs rose sharply, leading to a narrowed loss before tax despite a lower gross profit margin [Building Materials Business](index=14&type=section&id=Building%20Materials%20Business) The building materials business, primarily operated by Guangdong Hengjia, saw a 2% revenue decrease in the 2025 financial period due to a weak real estate and construction market - The building materials business is operated by Guangdong Hengjia, with production facilities located in Yangjiang City, Guangdong Province, China[31](index=31&type=chunk) - Revenue from pre-stressed high-strength concrete piles and other businesses primarily comprises pre-stressed high-strength concrete piles (**26%**), ready-mixed commercial concrete (**70%**), and bricks (**4%**)[31](index=31&type=chunk) - Revenue from external customers for the 2025 financial period was **HKD 98,234 thousand**, a decrease of approximately **2%** compared to the 2024 financial period, attributed to the weak real estate and construction market[31](index=31&type=chunk) [Net Other Losses (MD&A)](index=14&type=section&id=Net%20Other%20Losses_%28MD%26A%29) Net other losses significantly decreased by 91% to HKD 839 thousand, mainly due to the absence of a substantial loss from the disposal of property, plant, and equipment in the prior year | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Other Losses | (839) | (9,263) | -90.94% | - The reduction in loss was primarily due to a loss of approximately **HKD 8,583 thousand** from the disposal of property, plant, and equipment in the 2024 financial period, which was related to the relocation of production facilities due to environmental requirements[32](index=32&type=chunk) [Selling and Distribution Expenses (MD&A)](index=15&type=section&id=Selling%20and%20Distribution%20Expenses_%28MD%26A%29) Selling and distribution expenses decreased by 16% to HKD 17,654 thousand, primarily due to reduced transportation costs | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 17,654 | 20,927 | -15.64% | - The decrease in selling and distribution expenses was primarily due to reduced transportation costs[33](index=33&type=chunk) [Administrative Expenses (MD&A)](index=15&type=section&id=Administrative%20Expenses_%28MD%26A%29) Administrative expenses slightly increased by 1% to HKD 10,000 thousand, mainly due to higher legal and professional expenses | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 10,000 | 9,861 | 1.41% | - The increase in administrative expenses was mainly due to higher legal and professional expenses[34](index=34&type=chunk) [Finance Costs (MD&A)](index=15&type=section&id=Finance%20Costs_%28MD%26A%29) Finance costs significantly increased by 113% to HKD 1,261 thousand, primarily due to higher interest on interest-bearing borrowings and lease liabilities | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 1,261 | 592 | 113.01% | - The increase in finance costs was due to higher interest on interest-bearing borrowings (excluding unsecured bonds) and lease liabilities[35](index=35&type=chunk) [Loss Before Tax (MD&A)](index=15&type=section&id=Loss%20Before%20Tax_%28MD%26A%29) Loss before tax narrowed to HKD 15,122 thousand, a 38% reduction from the prior year, primarily due to a significant decrease in net other losses, despite a decline in overall gross profit margin | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Before Tax | (15,122) | (24,459) | -38.18% | | Gross Profit Margin | 15.2% | 16.7% | -1.5 percentage points | - The reduction in loss before tax was primarily due to a decrease in net other losses compared to the prior year[36](index=36&type=chunk) - The overall gross profit margin decreased due to lower profitability of bricks[36](index=36&type=chunk) [Interim Dividends](index=15&type=section&id=Interim%20Dividends) The Board of Directors resolved not to declare any interim dividend - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[37](index=37&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's operations are financed through equity fundraising, internal cash flow, bank financing, and convertible bonds, with equity attributable to owners decreasing by 16%, cash and cash equivalents at HKD 8,384 thousand, total interest-bearing borrowings at HKD 12,102 thousand, and a gearing ratio of approximately 273% - The Group finances its operations through equity fundraising activities, internally generated cash flows, bank financing from its principal bankers in China, and issued convertible bonds[38](index=38&type=chunk) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 52,033 | 62,007 | -16.10% | | Cash and Cash Equivalents | 8,384 | 10,593 | -20.95% | | Total Interest-bearing Borrowings | 12,102 | 17,337 | -30.20% | - The gearing ratio as at June 30, 2025, calculated as total current and non-current liabilities divided by total equity, was approximately **273%**[38](index=38&type=chunk) [Material Investments, Acquisitions and Disposals](index=16&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) The Group did not engage in any material investment, acquisition, or disposal activities during the 2025 financial period - The Group had no material investments, acquisitions, or disposals during the 2025 financial period[39](index=39&type=chunk) [Capital Structure](index=16&type=section&id=Capital%20Structure) The Group holds outstanding 2014 and 2024 convertible bonds, with net proceeds of approximately HKD 10,300 thousand from a September 2024 share subscription and convertible bond issuance used for general working capital, including directors' emoluments, staff costs, audit fees, and legal and professional expenses [Convertible Bonds](index=16&type=section&id=Convertible%20Bonds) As of June 30, 2025, the Company had outstanding 2014 and 2024 convertible bonds with principal amounts of HKD 15,000 thousand and HKD 30,000 thousand, respectively, with the Company considering all remaining 2014 convertible bonds invalid and non-convertible Outstanding Convertible Bonds (HKD thousands) | Convertible Bonds | Principal Amount (HKD thousands) | | :--- | :--- | | 2014 Convertible Bonds | 15,000 | | 2024 Convertible Bonds | 30,000 | - The Company considers all remaining 2014 convertible bonds to be invalid and non-convertible into shares of the Company[40](index=40&type=chunk) [Share Subscription and Issue of Convertible Bonds](index=16&type=section&id=Share%20Subscription%20and%20Issue%20of%20Convertible%20Bonds) In September 2024, the Company entered into a share subscription agreement and a 2024 convertible bond subscription agreement with its controlling shareholder, Full Harvest Group Limited, with the transactions completed in November 2024, yielding net proceeds of approximately HKD 10,300 thousand for general working capital - On September 6, 2024, the Company entered into a share subscription agreement and a 2024 convertible bond subscription agreement with its controlling shareholder, Full Harvest Group Limited[41](index=41&type=chunk)[42](index=42&type=chunk) - The share subscription and the issue of the 2024 convertible bonds were completed on November 29, 2024, with net proceeds of approximately **HKD 10,300 thousand** to be used for general working capital purposes[42](index=42&type=chunk) Actual Use of Net Proceeds (HKD millions) | Intended Use of Net Proceeds | Estimated Amount (HKD millions) | Actual Use for the Period Ended June 30, 2025 (HKD millions) | | :--- | :--- | :--- | | Directors' Emoluments and Staff Costs | 3.90 | 1.03 | | Audit Fees and Other Legal and Professional Expenses | 4.40 | 1.23 | | Rent and Others | 2.00 | 0.34 | | **Total** | **10.30** | **2.60** | [Share Options](index=17&type=section&id=Share%20Options) No share options were granted, exercised, cancelled, or lapsed during the 2025 and 2024 financial periods - No share options were granted, exercised, cancelled, or lapsed during the 2025 and 2024 financial periods[43](index=43&type=chunk) [Pledged Assets (MD&A)](index=18&type=section&id=Pledged%20Assets_%28MD%26A%29) Details of the Group's pledged assets, primarily buildings, plant and machinery, and right-of-use assets, are disclosed in Note 14 - Details of the Group's pledged assets are set out in Note 14[44](index=44&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed approximately 263 staff in Hong Kong and China, with remuneration policies based on duties, performance, experience, and industry practices, including participation in a Mandatory Provident Fund Scheme - As at June 30, 2025, the Group employed approximately **263** full-time management, administrative, technical, and production staff in Hong Kong and China[45](index=45&type=chunk) - Remuneration, promotion, and salaries are reviewed based on employees' duties, performance, professional experience, and current industry practices[45](index=45&type=chunk) [Foreign Exchange and Currency Risk](index=18&type=section&id=Foreign%20Exchange%20and%20Currency%20Risk) The Group's monetary assets, liabilities, and transactions are primarily denominated in RMB and HKD, exposing it to foreign currency risk between HKD and RMB, which is actively managed and monitored - The Group's monetary assets, liabilities, and transactions are primarily denominated in Renminbi and Hong Kong Dollars[46](index=46&type=chunk) - The Group is exposed to foreign currency risk arising from the Hong Kong Dollar against the Renminbi as its presentation currency, and it manages and monitors foreign exchange risk[46](index=46&type=chunk) [Commitments](index=18&type=section&id=Commitments) As of June 30, 2025, the Group had no significant capital commitments - As at June 30, 2025, the Group had no significant capital commitments[47](index=47&type=chunk) [Significant Events After the End of the Reporting Period](index=18&type=section&id=Significant%20Events%20After%20the%20End%20of%20the%20Reporting%20Period) No significant events affecting the Group have occurred since the end of the reporting period - No significant events affecting the Group have occurred since the end of the reporting period[48](index=48&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) Counterclaims totaling HKD 262,000 thousand may be time-barred or an abuse of process and could be withdrawn due to the defendant's default and misrepresentations - The defendant delayed submitting counterclaims totaling **HKD 262,000 thousand** to the plaintiff[49](index=49&type=chunk) - Based on legal advice, the counterclaims may be time-barred and/or an abuse of court process, and may be withdrawn due to the defendant's default and false representations[50](index=50&type=chunk)[51](index=51&type=chunk) [Outlook](index=19&type=section&id=Outlook) The Board believes that positive policies and economic development in Guangdong Province will positively impact the building materials industry, benefiting the Group, which is committed to exploring new businesses to expand its scale - The Deputy Director of the Yangjiang City Development and Reform Bureau stated that Yangjiang City will strive to achieve a GDP growth target of approximately **5%**, push fixed asset investment beyond **RMB 70 billion**, and focus on developing green energy, commercial aerospace, low-altitude economy, and marine ranches[50](index=50&type=chunk)[51](index=51&type=chunk) - The Directors believe that Guangdong Province's policies and track record will have a positive impact on the building materials industry, from which the Group will benefit[50](index=50&type=chunk) - The Group is committed to expanding its business scale by exploring new ventures to bring new growth and momentum to the Group[50](index=50&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers additional disclosures including director information, legal proceedings, securities transactions, and corporate governance [Update on Directors' Information](index=20&type=section&id=Update%20on%20Directors%27%20Information) No changes in directors' information requiring disclosure under Listing Rule 13.51B(1) occurred during the six months ended June 30, 2025, and up to the date of this announcement - No changes in directors' information requiring disclosure occurred during the six months ended June 30, 2025, and up to the date of this announcement[52](index=52&type=chunk) [Legal Proceedings](index=20&type=section&id=Legal%20Proceedings) The Group is involved in multiple legal proceedings, including claims as plaintiff against a vendor for breach of agreement and as defendant in equity freezing and statutory demands, with some progress made in certain cases while others remain ongoing [The Company/Its Subsidiaries as Plaintiff](index=20&type=section&id=The%20Company%2FIts%20Subsidiaries%20as%20Plaintiff) The Company and its subsidiaries, as plaintiffs, allege breach of a sale and purchase agreement by vendor Xiao Guang and guarantor Wang Zhining, seeking rescission and disputing HKD 15,000 thousand in outstanding convertible bonds, while claims against Ms. Liu Qian have been dismissed - The plaintiffs allege that defendants Xiao Guang and Wang Zhining breached the sale and purchase agreement, seeking rescission of the agreement and disputing outstanding convertible bonds with a principal amount of **HKD 15,000 thousand**[53](index=53&type=chunk) - The claim against Ms. Liu Qian was dismissed pursuant to a consent order dated June 21, 2023[55](index=55&type=chunk) [The Company's Subsidiaries as Defendant](index=21&type=section&id=The%20Company%27s%20Subsidiaries%20as%20Defendant) 70% (later reduced to 50%) equity interest in Zhuhai Hesheng was frozen due to legal proceedings involving Kou Jinshui and Zhuhai Hechuan Commercial Trading Co., Ltd., concerning total outstanding amounts of approximately RMB 7,200 thousand, and Sunway Financial Management received two statutory demands for legal service fees of approximately HKD 754 thousand, for which legal advice is being sought - **70%** (later reduced to **50%**) equity interest in Zhuhai Hesheng was frozen due to legal proceedings involving Kou Jinshui and Zhuhai Hechuan Commercial Trading Co., Ltd[56](index=56&type=chunk) - Zhuhai Hesheng owes Kou Jinshui and Zhuhai Hechuan total outstanding amounts (including interest) of approximately **RMB 2,300 thousand** and **RMB 4,900 thousand**, respectively[56](index=56&type=chunk) - Sunway Financial Management received two statutory demands for legal service fees of approximately **HKD 754 thousand**, and legal advice is currently being sought[56](index=56&type=chunk)[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during 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 six months ended June 30, 2025[58](index=58&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The Company complies with the Corporate Governance Code in Appendix C1 of the Listing Rules, with a deviation regarding the non-segregation of Chairman and Chief Executive Officer roles, while the Audit Committee has been established and reviewed the interim financial statements, and the Board confirms compliance with the Standard Code for Securities Transactions [Identity of Chairman and Chief Executive Officer and Segregation of Their Roles](index=22&type=section&id=Identity%20of%20Chairman%20and%20Chief%20Executive%20Officer%20and%20Segregation%20of%20Their%20Roles) The Company does not comply with Code Provision C.2.1 of the Corporate Governance Code, as no director has been appointed as Chairman or Chief Executive Officer, with responsibilities undertaken by the Board, and the Company is actively seeking a suitable candidate - The Company failed to comply with Code Provision C.2.1 of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, as no director has been appointed as Chairman or Chief Executive Officer[59](index=59&type=chunk) - The responsibilities of the Chairman or Chief Executive Officer are undertaken by the Company's Board of Directors, and the Company will continue to strive for compliance with the Code as soon as practicable[59](index=59&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting, risk management, and internal controls, and has reviewed the interim financial statements - The Audit Committee has been established, comprising three independent non-executive directors, responsible for reviewing and overseeing the Group's financial reporting, risk management, and internal controls[60](index=60&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[60](index=60&type=chunk) [Standard Code for Securities Transactions](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code for Securities Transactions as its code of conduct for directors' securities dealings, and all directors confirm compliance for the period ended June 30, 2025 - The Company has adopted the Standard Code for Securities Transactions set out in Appendix C3 of the Listing Rules, and all Directors confirm compliance with the Code for the six months ended June 30, 2025[61](index=61&type=chunk) [Publication of Unaudited Interim Report](index=23&type=section&id=Publication%20of%20Unaudited%20Interim%20Report) The Company's 2025 unaudited interim report, containing all information required by the Listing Rules, will be published on the Company's website and the Stock Exchange's website in due course - The Company's 2025 unaudited interim report, containing all information required by the Listing Rules, will be published on the Company's website and the Stock Exchange's website in due course[62](index=62&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該 等內容而引致的任何損失承擔任何責任。 中國建設銀行股份有限公司 CHINA CONSTRUCTION BANK CORPORATION （於中華人民共和國註冊成立的股份有限公司） （股份代號：00939） 截至 2025 年 6 月 30 日止六個月中期業績公告 中國建設銀行股份有限公司（"本行"）董事會谨此宣佈本行及所屬子公司（"本集 團"）截至2025年6月30日止六個月，根據適用的《香港聯合交易所有限公司證券上市規 則》披露要求及《國際會計準則第34號—中期財務報告》編製的未經審核綜合中期業績。 本行董事會審計委員會及外部審計師已審閱此中期業績。 中國建設銀行股份有限公司 董事会 2025年8月29日 於本公告日期，本行的執行董事為張金良先生、張毅先生和紀志宏先生，本行的非執行 董事為辛曉岱女士、劉芳女士、李璐女士、李莉女士和竇洪權先生，本行的獨立非執行 董事為威廉•科恩先生、梁錦松先生、詹誠信勛爵、林志軍先生和張為國先生。 重要提示 ...