[Announcement Overview](index=1&type=section&id=Announcement%20Overview) This announcement supplements the 2024 annual report of Shengli Oil & Gas Pipe Holdings Limited, providing additional information on related party transactions - This announcement supplements the 2024 annual report published by Shengli Oil & Gas Pipe Holdings Limited (Stock Code: 1080) on April 11, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - This announcement primarily provides additional information regarding the "Related Party Transactions" section in the Directors' Report on page 34 of the 2024 annual report[3](index=3&type=chunk)[4](index=4&type=chunk) [Supplemental Disclosure on Related Party Transactions](index=1&type=section&id=Supplemental%20Disclosure%20on%20Related%20Party%20Transactions) This section provides detailed supplementary information on related party transactions, including financial assistance, other transactions, and compliance confirmations [Nature and Exemption of Financial Assistance](index=1&type=section&id=Nature%20and%20Exemption%20of%20Financial%20Assistance) For the year ended December 31, 2024, the Group received financial assistance from related parties, including current directors, which were identified as connected transactions under Chapter 14A of the Listing Rules but were fully exempted due to specific conditions - For the year ended December 31, 2024, the Group received financial assistance from related parties, with some assistance originating from the Company's current directors[4](index=4&type=chunk) - The aforementioned financial assistance constitutes connected transactions under Chapter 14A of the Listing Rules, conducted on normal commercial terms without collateral from the Group's assets[4](index=4&type=chunk) - Pursuant to Rule 14A.90 of the Listing Rules, these transactions are fully exempted from reporting, annual review, announcement, circular, and independent shareholders' approval requirements[4](index=4&type=chunk) [Clarification on Other Related Party Transactions](index=1&type=section&id=Clarification%20on%20Other%20Related%20Party%20Transactions) Except for the financial assistance mentioned above, other related party transactions disclosed in Note 36 to the consolidated financial statements do not constitute connected transactions or continuing connected transactions under Chapter 14A of the Listing Rules - Apart from the aforementioned financial assistance, other related party transactions disclosed in Note 36 to the consolidated financial statements do not constitute connected transactions or continuing connected transactions under Chapter 14A of the Listing Rules[4](index=4&type=chunk) [Compliance Confirmation and Impact](index=2&type=section&id=Compliance%20Confirmation%20and%20Impact) The Group confirms that all its connected and related party transactions during 2024 complied with applicable disclosure requirements under Chapter 14A of the Listing Rules, and this supplementary announcement does not affect other contents of the 2024 annual report - The Group confirms that all its connected transactions and related party transactions during the current year have complied with the applicable disclosure requirements under Chapter 14A of the Listing Rules[5](index=5&type=chunk) - Except for those disclosed in this announcement, no other transactions meet the definition of connected transactions or continuing connected transactions requiring disclosure under Chapter 14A of the Listing Rules[5](index=5&type=chunk) - The above information supplements the 2024 annual report and does not affect other information in the 2024 annual report, which remains unchanged[5](index=5&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section includes the Board's order, the announcement publication date, and the list of the Company's Board of Directors members - This announcement is published by order of the Board and signed by Zhang Bizhuang, Executive Director and Chief Executive Officer[6](index=6&type=chunk) - The announcement publication date is August 29, 2025[7](index=7&type=chunk) - The Company's Board of Directors includes Executive Directors Mr. Wei Jun, Mr. Zhang Bizhuang, Mr. Wang Kunxian, and Ms. Han Aizhi; Non-executive Director Mr. Huang Xingwang; and Independent Non-executive Directors Mr. Chen Junzhu, Mr. Qi Defu, and Mr. Qiao Jianmin[7](index=7&type=chunk)

（股份代號：1508） 截 至 2025 年 6 月 3 0 日止六個月之 未經審計中期業績公告 中國再保險（集團）股份有限公司董事會謹此宣佈本集團截至2025年6月30日止六 個月之未經審計中期業績，連同2024年同期的比較數字，請一併閱覽下文管理層 討論與分析。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任 何責任。 China Reinsurance (Group) Corporation 中國再保險（集團）股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 本集團於2023年1月1日起實施《國際財務報告準則第17號 －保險合同》（「新保險 合同準則」）和《國際財務報告準則第9號 － 金融工具》（「新金融工具準則」）（統稱 「新準則」）。 1 合併中期利潤表 截至2025年6月30日止六個月期間 （除另有列明外，金額均以人民幣千元列示） | | | 截至6月30日止六個月期間 | | | --- | --- | --- | --- | | | 附 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 中國光大銀行股份有限公司 China Everbright Bank Company Limited （於中華人民共和國註冊成立的股份有限公司） （股份代號：6818） 2025年中期業績公告 中國光大銀行股份有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬公司 截至2025年6月30日止六個月期間之未經審計業績。本公告列載本公司2025年中期報告 全文，並符合香港聯合交易所有限公司證券上市規則中有關中期業績公告附載的資料之 要求。本公司2025年中期報告將於2025年9月刊載於本公司網站（www.cebbank.com）及香 港交易及結算所有限公司「披露易」網站（www.hkexnews.hk），並按本公司H股股東選擇收 取公司通訊的方式寄發予本公司H股股東。 發佈業績公告 本業績公告的中英文版本可在本公司網站(www.cebbank.com)及香港交易及結算所有限公 司「披露易」網站 ...

Overview [Definitions](index=4&type=section&id=Definitions) This section defines key terms used in the report, including "The Bank/PSBC/Postal Savings Bank of China," "China Post Group," and "The Group," along with professional terms like "China Accounting Standards" and "International Financial Reporting Standards," ensuring clear understanding of the report content - "The Bank / PSBC / Postal Savings Bank of China" refers to Postal Savings Bank of China Co., Ltd. and its subsidiaries and branches[16](index=16&type=chunk) - "China Post Group" refers to China Post Group Corporation Limited, the controlling shareholder of the Bank[16](index=16&type=chunk) [Company Profile](index=6&type=section&id=Company%20Profile) The Bank's history dates back to 1919, established in 2007, and listed on HKEX and SSE in 2016 and 2019 respectively, serving over 670 million individual customers - The Bank has a long history, tracing back to postal savings business in 1919, established in 2007, restructured into a joint-stock company in 2012, and listed on HKEX in 2016 and SSE in 2019[20](index=20&type=chunk) - The Bank is a leading large retail bank in China, committed to serving "Sannong" (agriculture, rural areas, and farmers), urban and rural residents, and small and medium-sized enterprises, with nearly **40,000 business outlets** and serving over **670 million individual customers**[20](index=20&type=chunk) [Strategic Positioning and Corporate Culture](index=7&type=section&id=Strategic%20Positioning%20and%20Corporate%20Culture) The Bank aims to build a first-class large retail bank and a leading digital ecological bank serving rural revitalization and new urbanization, guided by a mission of "creating value for customers" - The strategic goal is to build a first-class large retail bank that is trusted by customers, distinctive, stable, secure, innovation-driven, and value-driven[23](index=23&type=chunk) - The strategic vision is to build a leading digital ecological bank serving rural revitalization and new urbanization, empowering high-quality development with FinTech[23](index=23&type=chunk) - The corporate spirit emphasizes "responsibility, resilience, and warmth," with values including "creating value for customers," "integrity as the foundation of business," and "enduring through stability"[23](index=23&type=chunk) [Basic Information of the Company](index=8&type=section&id=Basic%20Information%20of%20the%20Company) This section provides the Bank's basic registration details, legal representatives, contact information, registered and office addresses, stock listing information, and legal advisors - The legal Chinese name is Postal Savings Bank of China Co., Ltd., with Zheng Guoyu as the legal representative and Liu Jianjun as the President[24](index=24&type=chunk) - The A-share stock abbreviation is "PSBC," code **601658**, listed on the Shanghai Stock Exchange; the H-share stock abbreviation is "PSBC," code **1658**, listed on The Stock Exchange of Hong Kong Limited[25](index=25&type=chunk) [Financial Highlights](index=10&type=section&id=Financial%20Highlights) As of June 30, 2025, the Bank achieved robust growth in total assets, customer loans, and deposits, with stable operating income and net profit, maintaining excellent asset quality and meeting capital adequacy requirements Key Financial Data for H1 2025 | Indicator | June 30, 2025 (RMB trillion yuan) | Growth from end of previous year | | :--- | :--- | :--- | | Total Assets | 18.19 | 6.47% | | Total Customer Loans | 9.54 | 6.99% | | Total Liabilities | 17.05 | 6.21% | | Customer Deposits | 16.11 | 5.37% | | **Profitability (RMB billion yuan)** | | | | Operating Income | 1,795.25 | 1.47% year-on-year | | Net Profit | 494.15 | 1.08% year-on-year | | Net Fee and Commission Income | 169.18 | 11.59% year-on-year | | **Asset Quality (%)** | | | | Non-performing Loan Ratio | 0.92 | | | Provision Coverage Ratio | 260.35 | | | **Capital Adequacy Ratio (%)** | | | | Capital Adequacy Ratio | 14.57 | Increased by 0.13 percentage points from end of previous year | | Common Equity Tier 1 Capital Adequacy Ratio | 10.52 | Increased by 0.96 percentage points from end of previous year | - The Bank actively contributes to the "Five Key Areas of Finance," with **technology loan balance exceeding 930 billion yuan**, **agricultural-related loan balance of 2.44 trillion yuan**, **green loan balance of 958.639 billion yuan**, and **over 10 million individual pension fund accounts**[29](index=29&type=chunk) [Overview of Operations](index=16&type=section&id=Overview%20of%20Operations) During the reporting period, the Bank's total assets and liabilities reached new highs, business structure transformation accelerated, profitability grew steadily, asset quality remained sound, and a successful A-share private placement strengthened capital, driving strategic upgrades - **Total assets exceeded 18 trillion yuan**, reaching **18.19 trillion yuan**; **total liabilities exceeded 17 trillion yuan**, reaching **17.05 trillion yuan**[42](index=42&type=chunk) - Loans increased by **622.982 billion yuan** in the first half, a year-on-year increase of **113.113 billion yuan**, with retail loans growing by **1.86%** and corporate loans by **14.83%**[43](index=43&type=chunk) - Net profit attributable to bank shareholders was **49.228 billion yuan**, a year-on-year increase of **0.85%**; operating income was **179.525 billion yuan**, a year-on-year increase of **1.47%**. Non-interest income contribution increased, with net fee and commission income growing by **11.59%** year-on-year and other non-interest income growing by **24.72%** year-on-year[44](index=44&type=chunk) - The non-performing loan ratio was **0.92%**, and the provision coverage ratio was **260.35%**, indicating sufficient risk coverage capability[45](index=45&type=chunk) - Successfully completed an A-share private placement of **130 billion yuan**, with a capital adequacy ratio of **14.57%** and a Common Equity Tier 1 capital adequacy ratio of **10.52%**, effectively enhancing the ability to serve the real economy and resist risks[45](index=45&type=chunk) - Actively promoting the "Five Major Initiatives" including "Serving Strong Counties and Rich Towns," "Urban Business Breakthrough," "Branch Efficiency Enhancement," "Corporate Business Improvement," and "Mobile Banking Comprehensive Breakthrough," along with "Seven Major Reforms"[50](index=50&type=chunk) Discussion and Analysis [Environment and Outlook](index=21&type=section&id=Environment%20and%20Outlook) In H1 2025, global economic growth slowed amid geopolitical conflicts and rate cuts, while China's economy remained stable; the Bank plans to continue steady progress, serve national strategies, and deepen reforms - In the first half of 2025, global economic growth momentum was insufficient, trade barriers increased worldwide, major developed economies entered a rate-cutting cycle, and international financial market volatility intensified[58](index=58&type=chunk) - China's economy maintained stable and progressive operations, with more proactive macroeconomic policies, moderately loose monetary policy, and stable banking sector operations[58](index=58&type=chunk) - In the second half, the Bank will resolutely shoulder its responsibilities as a large state-owned bank, accelerate high-quality development, fully promote reform, innovation, and transformation, and firmly maintain the bottom line of business development[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) [Financial Statement Analysis](index=22&type=section&id=Financial%20Statement%20Analysis) During the reporting period, the Bank achieved stable business growth with total assets of 18.19 trillion yuan and customer loans of 9.54 trillion yuan, maintained stable profitability with operating income of 179.525 billion yuan and net profit of 49.415 billion yuan, and sustained good asset quality with an NPL ratio of 0.92% and a provision coverage ratio of 260.35% - As of the end of the reporting period, **total assets reached 18.19 trillion yuan**, an increase of **6.47%** from the end of the previous year; **total customer loans were 9.54 trillion yuan**, an increase of **6.99%** from the end of the previous year[62](index=62&type=chunk) - During the reporting period, operating income reached **179.525 billion yuan**, a year-on-year increase of **1.47%**; net profit was **49.415 billion yuan**, a year-on-year increase of **1.08%**[62](index=62&type=chunk) - The non-performing loan ratio was **0.92%**, and the provision coverage ratio was **260.35%**, maintaining good asset quality[62](index=62&type=chunk) [Income Statement Analysis](index=22&type=section&id=Income%20Statement%20Analysis) Net profit increased by 1.08% to 49.415 billion yuan, driven by significant growth in net fee and commission income and other non-interest income, despite a decline in net interest income due to rate changes, while operating expenses decreased and credit impairment losses rose Key Income Statement Items Changes for H1 2025 | Item | Jan-Jun 2025 (RMB million yuan) | Jan-Jun 2024 (RMB million yuan) | Change (RMB million yuan) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | 139,058 | 142,876 | (3,818) | (2.67) | | Net Fee and Commission Income | 16,918 | 15,161 | 1,757 | 11.59 | | Other Net Non-interest Income | 23,549 | 18,882 | 4,667 | 24.72 | | Operating Income | 179,525 | 176,919 | 2,606 | 1.47 | | Operating Expenses | 99,808 | 107,372 | (7,564) | (7.04) | | Credit Impairment Losses | 21,715 | 16,120 | 5,595 | 34.71 | | Net Profit | 49,415 | 48,885 | 530 | 1.08 | | Net Profit Attributable to Bank Shareholders | 49,228 | 48,815 | 413 | 0.85 | - The decrease in net interest income was mainly due to the reduction in LPR and adjustments to existing mortgage rates, leading to a decline in interest-earning asset yields, though partially offset by scale growth. Net interest margin and net interest spread were **1.70%** and **1.69%**, respectively[66](index=66&type=chunk) - Savings agency fees and other expenses decreased by **8.91%** year-on-year, primarily driven by the Bank's proactive adjustment of savings agency fee rates for RMB individual deposit business[96](index=96&type=chunk) [Balance Sheet Analysis](index=30&type=section&id=Balance%20Sheet%20Analysis) As of the reporting period, total assets grew by 6.47% to 18.19 trillion yuan, with net customer loans at 9.31 trillion yuan; total liabilities increased by 6.21% to 17.05 trillion yuan, driven by customer deposits; and total shareholders' equity rose by 10.58% to 1.14 trillion yuan, primarily due to an A-share private placement Key Balance Sheet Items as of June 30, 2025 | Item | Amount (RMB million yuan) | Proportion (%) | Growth from end of previous year (%) | | :--- | :--- | :--- | :--- | | Total Assets | 18,190,521 | 100.00 | 6.47 | | Net Customer Loans | 9,309,437 | 51.18 | 7.20 | | Financial Investments | 6,170,869 | 33.92 | 2.78 | | Total Liabilities | 17,049,715 | 100.00 (of Total Liabilities) | 6.21 | | Customer Deposits | 16,108,809 | 94.48 (of Total Liabilities) | 5.37 | | Total Shareholders' Equity | 1,140,806 | 6.27 (of Total Assets) | 10.58 | - Total customer loans were **9,536.184 billion yuan**, an increase of **622.982 billion yuan** from the end of the previous year, growing by **6.99%**. Individual loans grew by **1.86%**, and corporate loans grew by **14.83%**[110](index=110&type=chunk)[116](index=116&type=chunk)[119](index=119&type=chunk) - Among financial investments, bond investments were **4,778.29 billion yuan**, an increase of **3.03%** from the end of the previous year; interbank certificates of deposit were **465.629 billion yuan**, an increase of **10.93%** from the end of the previous year[122](index=122&type=chunk) - The increase in total shareholders' equity was mainly due to the issuance of A-shares to the Ministry of Finance, China Mobile Communications Group Co., Ltd., and China State Shipbuilding Corporation Limited[148](index=148&type=chunk) [Cash Flow Statement Analysis](index=40&type=section&id=Cash%20Flow%20Statement%20Analysis) During the reporting period, net cash inflow from operating activities increased by 52.767 billion yuan to 183.699 billion yuan, while net cash outflow from investing activities decreased significantly, and financing activities shifted from net outflow to net inflow of 66.968 billion yuan due to interbank CD and A-share issuances Key Cash Flow Changes for H1 2025 | Item | H1 2025 (RMB billion yuan) | H1 2024 (RMB billion yuan) | Change (RMB billion yuan) | | :--- | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 1,836.99 | 1,309.32 | +527.67 | | Net Cash Outflow from Investing Activities | 388.13 | 1,979.33 | -1,591.20 | | Net Cash Inflow/(Outflow) from Financing Activities | 669.68 | (1,086.00) | +1,755.68 | - The increase in net cash inflow from operating activities was mainly due to increased cash received from interbank deposits and bond repurchase transactions compared to the same period last year[154](index=154&type=chunk) - Financing activities shifted from a net outflow to a net inflow, mainly due to the issuance of interbank certificates of deposit and increased cash received from the issuance of A-shares to specific investors during the period[154](index=154&type=chunk) [Other Financial Information](index=40&type=section&id=Other%20Financial%20Information) During the reporting period, the Bank had no significant accounting policy changes, reported no differences in net profit and equity under CAS and IFRS, and issued no discloseable corporate bonds or non-financial enterprise debt financing instruments - No significant changes in accounting policies occurred during the reporting period[155](index=155&type=chunk) - There were no differences in net profit attributable to bank shareholders and equity attributable to bank shareholders at the end of the reporting period between financial statements prepared under China Accounting Standards and International Financial Reporting Standards[156](index=156&type=chunk) [Business Review](index=41&type=section&id=Business%20Review) This section details the Bank's retail, corporate, treasury and asset management, inclusive finance, and subsidiary business developments, highlighting steady growth, focus on "Sannong" and SMEs, digital transformation, and strategic contributions from its controlled subsidiaries - Retail banking business managed **individual customer assets (AUM) of 17.67 trillion yuan**, an increase of **5.87%** from the end of the previous year[159](index=159&type=chunk)[160](index=160&type=chunk) - Corporate customers reached **1.8894 million**, with **total corporate customer financing (FPA) of 6.43 trillion yuan**, an increase of **15.72%**. The Bank served over **100,000 technology-based enterprises**, with **technology loan balance exceeding 930 billion yuan**[190](index=190&type=chunk) - In inclusive finance, **agricultural-related loan balance was 2.44 trillion yuan**, and **inclusive small and micro enterprise loan balance was 1.72 trillion yuan**, both ranking among the top state-owned banks[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk) - Treasury and asset management business had **treasury business assets of 7.35 trillion yuan**, and **wealth management product scale exceeded 1.2 trillion yuan**, growing by **17.54%**[226](index=226&type=chunk) [Retail Banking Business](index=41&type=section&id=Retail%20Banking%20Business) The Bank maintained its leading retail banking strategy, with 14.22 trillion yuan in individual deposits and 4.86 trillion yuan in individual loans, enhancing service quality through customer segmentation, management, and technological innovation, while supporting consumption and individual business clients via digital transformation - As of the end of the reporting period, **individual deposits were 14.22 trillion yuan**, an increase of **591.144 billion yuan** from the end of the previous year; **individual loans were 4.86 trillion yuan**, an increase of **88.793 billion yuan** from the end of the previous year[161](index=161&type=chunk) - The scale of wealth customers continued to grow, with **FuJia customers reaching 6.441 million**, an increase of **10.97%**; **DingFu customers reached 41,400**, an increase of **21.28%**[174](index=174&type=chunk) - The number of **individual pension fund accounts exceeded 10 million**, and the issuance of **financial social security cards reached nearly 130 million** cards[180](index=180&type=chunk) - Credit card consumption amounted to **456.442 billion yuan**, with **38.5756 million cards in circulation**, and a **non-performing ratio of 1.55%**[183](index=183&type=chunk) [Corporate Banking Business](index=47&type=section&id=Corporate%20Banking%20Business) The Bank's corporate banking business, driven by customer-centric reforms, achieved double-digit growth in corporate clients, loans, and deposits, actively supporting the real economy, key national development areas, and increasing financial aid for private and technology-based enterprises Key Corporate Banking Business Data for H1 2025 | Indicator | June 30, 2025 (RMB billion yuan) | Growth from end of previous year (%) | | :--- | :--- | :--- | | Corporate Deposits | 18,858.70 | 13.86 | | Corporate Loans | 41,902.61 | 14.83 | | Total Corporate Customer Financing (FPA) | 64,300 | 15.72 | | Corporate Banking Business Income | 407.46 | 19.99 (year-on-year) | - Served over **100,000 technology-based enterprises**, with **technology loan balance exceeding 930 billion yuan**[190](index=190&type=chunk) - Agricultural-related corporate loan balance increased by **15.06%** from the end of the previous year; green wholesale loan balance increased by **11.59%** from the end of the previous year[194](index=194&type=chunk) - Private enterprise loan balance was **2.64 trillion yuan**, ranking among the top state-owned banks in terms of proportion of total customer loans[195](index=195&type=chunk) - Investment banking net fee and commission income was **3.608 billion yuan**, a year-on-year increase of **48.23%**[213](index=213&type=chunk) [Treasury and Asset Management Business](index=55&type=section&id=Treasury%20and%20Asset%20Management%20Business) The Bank's treasury and asset management business aims to be a benchmark interbank financial institution, with nearly 3,300 interbank clients and over 7 trillion yuan in cumulative transactions on its "YouNiTongYing" platform, achieving significant growth in digital bill business, financial market making, and asset custody fees - The number of **interbank clients was nearly 3,300**, and the cumulative transaction volume on the "YouNiTongYing" interbank ecosystem platform exceeded **7 trillion yuan**[228](index=228&type=chunk) Key Treasury and Asset Management Business Data for H1 2025 | Indicator | Jan-Jun 2025 (RMB billion yuan) | Year-on-year Growth (%) | | :--- | :--- | :--- | | Bill Business Non-interest Income | 12.48 | 34.34 | | Market Making Transaction Volume | 8,713.69 | 52.31 | | Precious Metals Business Income | - | 176.36 | | Custody Fee Income | - | >17 | - Bond investment business scale was **4,778.29 billion yuan**, an increase of **3.03%** from the end of the previous year, with government bond investment scale growing by **11.69%**[241](index=241&type=chunk) [Inclusive Finance](index=59&type=section&id=Inclusive%20Finance) The Bank actively advanced inclusive finance, with agricultural-related loans of 2.44 trillion yuan and inclusive small and micro enterprise loans of 1.72 trillion yuan, both leading among state-owned banks, supporting national food security, poverty alleviation, rural development, and digital transformation for small and micro businesses Key Inclusive Finance Data as of June 30, 2025 | Indicator | June 30, 2025 (RMB trillion yuan) | Growth from end of previous year (%) | | :--- | :--- | :--- | | Agricultural-related Loan Balance | 2.44 | 6.53 | | Inclusive Small and Micro Enterprise Loan Balance | 1.72 | 5.15 | - Loan balance in key grain sectors was **224.423 billion yuan**, an increase of **21.28%** from the end of the previous year[250](index=250&type=chunk) - The Bank's total loan balance in poverty-stricken areas was **606.492 billion yuan**, an increase of **41.856 billion yuan** from the end of the previous year[251](index=251&type=chunk) - The "YiQiYing" platform has cumulatively served over **110,000 customers**, assisting enterprises in digital transformation[264](index=264&type=chunk) [Major Controlled Subsidiaries](index=63&type=section&id=Major%20Controlled%20Subsidiaries) The Bank's three controlled subsidiaries—China Post Wealth Management, China Post Consumer Finance, and Youhuiwanjia Bank—pursue differentiated strategies, fulfilling "Five Key Areas of Finance" requirements, driving business transformation, and achieving significant growth in wealth management products, inclusive loans, and user base, while reducing losses - China Post Wealth Management's product scale reached **1,201.925 billion yuan**, an increase of **17.54%** from the end of the previous year, with a net value rate of **98.57%**[268](index=268&type=chunk) - China Post Consumer Finance's comprehensive loan pricing decreased by **21 basis points** from the end of the previous year, issuing **103.8 billion yuan** in inclusive loans[272](index=272&type=chunk) - Youhuiwanjia Bank's cumulative registered users exceeded **20 million**, with a net loss of **118 million yuan**, a year-on-year reduction in loss of **38.74%**[275](index=275&type=chunk) - All subsidiaries actively implemented the requirements of the "Five Key Areas of Finance," making progress in FinTech, green finance, inclusive finance, pension finance, and digital finance[267](index=267&type=chunk)[271](index=271&type=chunk)[275](index=275&type=chunk) [Capability Building](index=66&type=section&id=Capability%20Building) This section outlines the Bank's advancements in FinTech, online banking, branch network, and human resources, emphasizing digital transformation, enhanced mobile banking services, upgraded branch efficiency, and optimized talent development - The Bank comprehensively built digital intelligence advantages, formulating the "China Post Savings Bank Digital Transformation Reform Work Plan" with the vision of creating a digital intelligent ecological bank[282](index=282&type=chunk) - Mobile banking monthly active users (MAU) reached nearly **86 million**, and the number of individual digital RMB APP wallets exceeded **33 million**, ranking first among peers[300](index=300&type=chunk)[312](index=312&type=chunk) - Branches scaled up the application of the cloud counter model, with an average of **43,900 remote reviews and transactions daily**, and smart counter responses to questions cumulatively exceeding **1.25 million times**[316](index=316&type=chunk)[318](index=318&type=chunk)[319](index=319&type=chunk) - As of the end of the reporting period, the Bank had a total of **193,777 employees**, continuously optimizing its talent structure and development[337](index=337&type=chunk) [FinTech](index=66&type=section&id=FinTech) The Bank actively built digital intelligence advantages, implementing a digital transformation plan, embracing "AI+" for large model empowerment, and achieving intelligent applications across various business lines, while launching a third-generation treasury core system, adapting mobile banking for HarmonyOS, and strengthening digital infrastructure and security - The big data platform's real-time data warehouse processed over **5 billion data records daily**, a year-on-year increase of approximately **80%**[280](index=280&type=chunk)[294](index=294&type=chunk) - Fully embracing "AI+", exploring new models empowered by large models, with over **230 scenarios integrated** and under construction, covering various business lines[286](index=286&type=chunk)[287](index=287&type=chunk) - The smart investment banking digital ecosystem cluster was launched, and the bill trading robot "YouXiaoYing" leverages AI technology to empower the entire bill trading process[280](index=280&type=chunk)[288](index=288&type=chunk) - The first batch of business functions for the third-generation treasury core system was launched, increasing system load peak by over **10 times** and reducing single transaction approval time by **97%**[280](index=280&type=chunk)[292](index=292&type=chunk) [Online Banking](index=71&type=section&id=Online%20Banking) The Bank continuously enhanced its personal e-banking services, with mobile banking MAU nearing 86 million and smart assistants deployed nationwide; corporate WeChat and remote banking innovations deepened; credit card app MAU approached 7.5 million; and the digital RMB ecosystem rapidly expanded, with over 33 million personal wallets, leading peers in smart contracts, rural revitalization, and cross-border payments - Mobile banking monthly active users (MAU) reached nearly **86 million**, and the smart assistant was launched nationwide, enhancing the convenience of intelligent services[300](index=300&type=chunk)[301](index=301&type=chunk) - The number of individual digital RMB APP wallets exceeded **33 million**, ranking first among peers[300](index=300&type=chunk)[312](index=312&type=chunk) - Expanded digital RMB smart contract applications, supported rural revitalization, and explored applications in cross-border payments[312](index=312&type=chunk) - Credit card APP monthly active users (MAU) reached nearly **7.5 million**, with over **300 new optimized features** added[300](index=300&type=chunk)[304](index=304&type=chunk) [Branch Network Development](index=74&type=section&id=Branch%20Network%20Development) The Bank optimized its offline channel layout, upgrading branches with 29 new outlets, scaled up cloud counter operations handling 43,900 daily remote transactions, deployed "XiaoYou Assistant" for over 1.25 million smart counter responses, and enhanced elder-friendly services and "YouAi Station" community activities - As of the end of the reporting period, the Bank had **39,188 business outlets**, with **201 brand flagship stores** established[317](index=317&type=chunk) - Scaled up the application of the cloud counter model, with an average of **43,900 remote reviews and transactions daily**, and mobile outreach frequency increased by **67.66%** year-on-year[316](index=316&type=chunk)[318](index=318&type=chunk) - Fully promoted the "XiaoYou Assistant" smart Q&A tool, with smart counter responses to questions cumulatively exceeding **1.25 million times**[316](index=316&type=chunk)[319](index=319&type=chunk) - Opened **7,094 "YouAi Stations"**, organizing over **3,700 themed activities** for traditional festivals, college entrance exams, and cultural tourism[316](index=316&type=chunk)[320](index=320&type=chunk) [Human Resources and Institutional Management](index=77&type=section&id=Human%20Resources%20and%20Institutional%20Management) The Bank prioritizes talent development to support business and strategy, optimizing its workforce structure, nurturing young leaders, enhancing training, and aligning compensation with performance, with 193,777 employees and 7,870 institutions as of the reporting period - As of the end of the reporting period, the Bank had a total of **193,777 employees**, including **179,282 contract employees** and **14,495 dispatched workers**[337](index=337&type=chunk) - The employee age structure was primarily **31-40 years old (45.44%)**, with **bachelor's degrees as the main educational background (76.97%)**, and **female employees accounting for 59.32%**[338](index=338&type=chunk) - As of the end of the reporting period, the Bank had a total of **7,870 institutions**, including the Head Office, **36 first-tier branches**, **325 second-tier branches**, **2,221 first-tier sub-branches**, **5,284 second-tier sub-branches**, and **3 controlled subsidiaries**[340](index=340&type=chunk) [Risk Management](index=79&type=section&id=Risk%20Management) This section details the Bank's risk management framework, comprehensive strategies for various risks (credit, market, IRRBB, liquidity, operational, legal, compliance, AML, IT, reputational, strategic, country, climate), and consolidated risk management, emphasizing a prudent approach, optimized "comprehensive, full-process, all-time, all-domain" system, and intelligent risk control to ensure overall controllable risk levels - The Bank adheres to a prudent and stable overall risk appetite, aiming for a long-term balance between stable growth and risk prevention, ensuring overall controllable risk levels[353](index=353&type=chunk)[354](index=354&type=chunk) - Deeply promoting the digital transformation of risk management, solidly enhancing intelligent risk control capabilities, and applying model tools, big data risk prediction models, and intelligent anti-fraud models[355](index=355&type=chunk) - Continuously advancing the implementation of advanced capital management approaches, strengthening infrastructure construction, and solidifying the quality of model basic data[356](index=356&type=chunk) [Risk Management Organizational Structure](index=79&type=section&id=Risk%20Management%20Organizational%20Structure) The Bank has a clear risk management organizational structure where the Board assumes ultimate responsibility, the Supervisory Board oversees, and senior management implements, supported by committees, with business units holding primary risk prevention duties and risk management departments providing oversight - The Board of Directors bears ultimate responsibility for comprehensive risk management, the Supervisory Board bears supervisory responsibility, and senior management bears implementation responsibility[346](index=346&type=chunk)[347](index=347&type=chunk) - Established a "three lines of defense" internal control system, with the first line being business management departments, the second line being risk management departments, and the third line being audit and discipline inspection departments[351](index=351&type=chunk) [Comprehensive Risk Management](index=81&type=section&id=Comprehensive%20Risk%20Management) The Bank continuously implements financial risk prevention, building proactive risk management capabilities with a prudent appetite, optimizing its "comprehensive, full-process, all-time, all-domain" system, strengthening top-level design, advancing advanced capital management, safeguarding asset quality, and enhancing digital risk control - Adhering to a prudent and stable risk appetite, continuously optimizing the "comprehensive, full-process, all-time, all-domain" risk management system[352](index=352&type=chunk) - Strengthening top-level design for risk management, coordinating the compliance of advanced capital management approaches, and deepening their application in key areas[352](index=352&type=chunk)[356](index=356&type=chunk) - Resolutely safeguarding the bottom line of asset quality control, effectively preventing credit risks in key areas such as real estate, urban investment platforms, cyclical industries, and export trade[352](index=352&type=chunk) - Deeply promoting the digital transformation of risk management, solidly enhancing intelligent risk control capabilities, and applying new technologies such as knowledge graphs and large models[355](index=355&type=chunk) [Credit Risk](index=82&type=section&id=Credit%20Risk) Credit risk, a primary concern from loans, treasury, and off-balance sheet credit, is managed through in-depth research, precise guidance, focused monitoring, system optimization, and coordinated measures, resulting in the disposal of 47.318 billion yuan in non-performing loans and interest during the reporting period - Credit risk primarily arises from loans, treasury business (including interbank deposits, interbank placements, reverse repurchase agreements, corporate and financial bond investments, interbank investments), and off-balance sheet credit business (including guarantees, commitments, etc.)[357](index=357&type=chunk) - During the reporting period, the Bank disposed of **47.318 billion yuan** in principal and interest of on- and off-balance sheet non-performing loans, including **11.209 billion yuan** in cash recovery, **17.320 billion yuan** in bad debt write-offs, and **12.604 billion yuan** in non-performing asset securitization[361](index=361&type=chunk) Non-performing Loan Structure by Collateral Type as of June 30, 2025 | Item | Amount (RMB million yuan) | Proportion (%) | | :--- | :--- | :--- | | Unsecured Loans | 25,810 | 29.55 | | Guaranteed Loans | 6,808 | 7.79 | | Mortgage Loans | 53,921 | 61.73 | | Pledged Loans | 812 | 0.93 | | Total | 87,351 | 100.00 | Non-performing Loan Distribution by Product Type as of June 30, 2025 | Item | NPL Balance (RMB million yuan) | Proportion (%) | NPL Ratio (%) | | :--- | :--- | :--- | :--- | | Subtotal of Individual Loans | 66,919 | 76.61 | 1.38 | | Subtotal of Corporate Loans | 20,432 | 23.39 | 0.49 | | Total | 87,351 | 100.00 | 0.92 | [Market Risk](index=89&type=section&id=Market%20Risk) Market risk, stemming from adverse market price movements, is centrally managed by the Bank using various analytical methods, with strengthened book classification, optimized limit systems, and close monitoring of exchange rates, ensuring stable foreign exchange exposure and overall controllable currency risk - The Bank uses various methods to measure and manage market risk, including exposure analysis, profit and loss analysis, sensitivity analysis, scenario analysis, Value-at-Risk (VaR), and stress testing[383](index=383&type=chunk) - During the reporting period, the Bank's foreign exchange exposure remained relatively stable, with all exchange rate risk indicators meeting regulatory requirements, and overall exchange rate risk being controllable[385](index=385&type=chunk) Currency Concentration (Net Long/Short Position) as of June 30, 2025 | Currency | Net Long/(Short) Position (RMB million yuan) | | :--- | :--- | | USD | 24,047 | | HKD | 1,675 | | Others | 912 | | Total | 26,634 | [Interest Rate Risk in the Banking Book (IRRBB)](index=91&type=section&id=Interest%20Rate%20Risk%20in%20the%20Banking%20Book%20%28IRRBB%29) Interest rate risk in the banking book, arising from adverse changes in interest rates and term structures, is managed by the Bank through prudent strategies, utilizing repricing gap analysis, NII and economic value sensitivity analysis, limits, duration management, and stress testing, ensuring overall stable risk levels within regulatory limits - The Bank's interest rate risk in the banking book primarily arises from mismatches in asset-liability repricing periods and inconsistencies in pricing benchmark changes[390](index=390&type=chunk) - During the reporting period, the Bank's interest rate risk level in the banking book remained stable overall, with all risk indicators within regulatory requirements[390](index=390&type=chunk) Interest Rate Sensitivity Analysis (Change in Net Interest Income) as of June 30, 2025 | Yield Basis Point Change | Change in Net Interest Income (RMB million yuan) | | :--- | :--- | | Up 100 basis points | (26,253) | | Down 100 basis points | 26,253 | [Liquidity Risk](index=92&type=section&id=Liquidity%20Risk) Liquidity risk, the inability to timely obtain sufficient funds at reasonable cost, is managed by the Bank through a robust system, ensuring liquidity needs are met under normal and stressed conditions, supported by stable retail deposits and highly liquid assets, with all key liquidity ratios exceeding regulatory requirements - The primary objective of the Bank's liquidity risk management is to ensure that liquidity needs and external payment obligations can be met in a timely manner at a reasonable cost under both normal operating and stressed conditions[394](index=394&type=chunk) - The Bank's funding sources are primarily retail deposits, ensuring strong liability stability; qualified high-quality bonds account for a higher proportion of assets, providing strong asset liquidity[397](index=397&type=chunk) Liquidity Regulatory Indicators as of June 30, 2025 | Indicator | June 30, 2025 (%) | | :--- | :--- | | Liquidity Ratio | 104.07 | | Liquidity Coverage Ratio | 223.29 | | Net Stable Funding Ratio | 168.56 | [Operational Risk](index=93&type=section&id=Operational%20Risk) Operational risk, stemming from internal processes, personnel, IT systems, and external events, is managed by the Bank through strict regulatory compliance, enhanced risk management tools, detailed process reviews, strengthened monitoring, and loss analysis, ensuring overall low operational risk and loss rates during the reporting period - Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events[400](index=400&type=chunk) - During the reporting period, the Bank's operational risk and operational risk loss rate were both maintained at a low level[400](index=400&type=chunk) [Legal Risk](index=93&type=section&id=Legal%20Risk) Legal risk, arising from non-compliance with laws, regulations, or contracts, is managed by the Bank through a robust legal risk management system, "one case, one strategy" for major litigations, enhanced authorization and intellectual property management, and an integrated "legal review toolbox," ensuring overall controllable legal risk during the reporting period - Legal risk refers to the risk of adverse legal consequences for a commercial bank, such as legal liability, loss of rights, or reputational damage, due to business operations violating laws, regulations, or contractual agreements, unlawful or breach of contract by counterparties, or significant changes in the external legal environment[401](index=401&type=chunk) - During the reporting period, the Bank's legal risk was overall controllable[401](index=401&type=chunk) [Compliance Risk](index=94&type=section&id=Compliance%20Risk) Compliance risk, the potential for negative impacts from non-compliant business or employee conduct, is managed by the Bank through a continuously improved compliance system, focusing on compliance review, robust institutional management, optimized knowledge systems, and enhanced risk monitoring, ensuring overall controllable compliance risk and stable, compliant operations - Compliance risk refers to the possibility that a financial institution or its employees may incur criminal, administrative, or civil legal liabilities, financial losses, reputational damage, or other adverse effects due to business operations or employee conduct violating compliance norms[403](index=403&type=chunk) - During the reporting period, the Bank's business maintained compliant operations and stable development, with overall controllable compliance risk[403](index=403&type=chunk) [Anti-Money Laundering (AML) Risk](index=94&type=section&id=Anti-Money%20Laundering%20%28AML%29%20Risk) AML risk, the potential for business or products to be exploited for illicit activities, is managed by the Bank through strict adherence to AML laws, a risk-based approach, improved mechanisms, and enhanced system tools, ensuring overall controllable AML risk with no major incidents during the reporting period - Money laundering risk refers to the risk arising from businesses or products being exploited by criminals for illegal activities such as money laundering, terrorist financing, and proliferation financing[404](index=404&type=chunk) - During the reporting period, no significant money laundering risk incidents occurred, and money laundering risk was overall controllable[404](index=404&type=chunk) [Information Technology (IT) Risk](index=94&type=section&id=Information%20Technology%20%28IT%29%20Risk) IT risk, arising from natural, human, technical, and management factors in IT use, is a key focus for the Bank, which continuously builds a precise and efficient tech risk management system, strengthens cybersecurity, develops data security monitoring, and conducts regular disaster recovery drills, ensuring stable IT system operations and no major security incidents during the reporting period - Information technology risk refers to operational, legal, and reputational risks arising from natural factors, human factors, technical vulnerabilities, and management deficiencies in the process of utilizing information technology[406](index=406&type=chunk) - During the reporting period, the Bank's information systems operated stably overall, with no major security incidents, and all information technology risk monitoring indicators were normal[406](index=406&type=chunk) [Reputational Risk](index=95&type=section&id=Reputational%20Risk) Reputational risk, stemming from negative perceptions due to bank actions, employee conduct, or external events, is managed by the Bank through a comprehensive risk management system, focusing on proactive identification, monitoring, and response to public opinion, resulting in a positive overall public sentiment and no major reputational incidents during the reporting period - Reputational risk refers to the risk that stakeholders, the public, and media form negative perceptions of the bank due to its actions, employee conduct, or external events, thereby damaging brand value, hindering normal operations, and even affecting market and social stability[407](index=407&type=chunk) - During the reporting period, the Bank's overall public opinion was favorable, with no major reputational incidents occurring[407](index=407&type=chunk) [Strategic Risk](index=95&type=section&id=Strategic%20Risk) Strategic risk, arising from inappropriate business strategies or external environmental changes, is managed by the Bank through a long-term, sustainable development approach, focusing on the "Five Key Areas of Finance," optimizing strategy, business, customer, income, and regional structures, and enhancing strategic management foresight and stability, ensuring overall controllable strategic risk - Strategic risk refers to the risk arising from inappropriate business strategies or changes in the external operating environment[409](index=409&type=chunk) - During the reporting period, the Bank continuously enhanced its strategic risk management capabilities, and strategic risk was overall controllable[409](index=409&type=chunk) [Country Risk](index=95&type=section&id=Country%20Risk) Country risk, stemming from political, economic, or social changes in a country or region leading to debt default or business losses, is managed by the Bank within its comprehensive risk management framework using country risk ratings, limits, and exposure monitoring, with exposures primarily concentrated in low-risk countries, ensuring overall controllable country risk - Country risk refers to the risk that a debtor in a particular country or region is unable or unwilling to repay bank debts, or that the bank's commercial presence in that country or region suffers losses, or that the bank incurs other losses, due to political, economic, or social changes and events in that country or region[410](index=410&type=chunk) - During the reporting period, the Bank's country risk exposure was mainly concentrated in countries and regions with low and relatively low country risk, and overall country risk was controlled at a reasonable level[410](index=410&type=chunk) [Climate Risk](index=96&type=section&id=Climate%20Risk) Climate risk, encompassing physical and transition risks, is highly prioritized by the Bank and integrated into its comprehensive risk management, with continuous implementation of ESG risk management, full credit process integration, four years of high-carbon industry climate risk stress testing, and eight years of ESG and climate risk special investigations, ensuring overall controllable climate risk - Climate risk refers to the potential adverse impacts that climate change may have on natural and socio-economic systems, primarily including physical risk and transition risk[411](index=411&type=chunk) - During the reporting period, the Bank's climate risk was overall controllable[411](index=411&type=chunk) - Conducted climate risk sensitivity stress tests for eight high-carbon industries such as power and steel for **four consecutive years**, and carried out special ESG and climate risk investigations for **eight consecutive years**[412](index=412&type=chunk) [Consolidated Risk Management](index=96&type=section&id=Consolidated%20Risk%20Management) Consolidated risk management involves comprehensive oversight of the banking group and its subsidiaries, all of which are included in the scope, ensuring overall controllable risk. The Bank strengthens risk appetite and limit transmission, optimizes assessment schemes, enhances automated monitoring, and implements risk isolation requirements - Consolidated risk management refers to the continuous optimization of the comprehensive risk management system for the banking group and its subsidiaries, effectively identifying, measuring, monitoring, and controlling the overall risk of the banking group[413](index=413&type=chunk) - As of the end of the reporting period, all of the Bank's subsidiaries were included in the scope of consolidated risk management, and the overall risk of the banking group was controllable[413](index=413&type=chunk) [Capital Management](index=97&type=section&id=Capital%20Management) The Bank aims to maintain robust capital adequacy, meeting regulatory and macro-prudential requirements, by optimizing its capital management system, completing a 130 billion yuan A-share private placement, issuing 30 billion yuan in perpetual bonds, and redeeming 80 billion yuan in perpetual bonds, ensuring all capital ratios and leverage ratios remain compliant - The Bank's capital management objective is to maintain a sound and reasonable level of capital adequacy, continuously meeting regulatory policies and macro-prudential requirements[414](index=414&type=chunk) Capital Adequacy Ratios as of June 30, 2025 | Item | June 30, 2025 (%) | December 31, 2024 (%) | | :--- | :--- | :--- | | Common Equity Tier 1 Capital Adequacy Ratio | 10.52 | 9.56 | | Tier 1 Capital Adequacy Ratio | 12.13 | 11.89 | | Capital Adequacy Ratio | 14.57 | 14.44 | - Successfully completed the issuance of A-shares to specific investors, raising a total of **130 billion yuan**, all used to supplement Common Equity Tier 1 capital[420](index=420&type=chunk) - Issued **30 billion yuan** in write-down perpetual bonds and redeemed **80 billion yuan** in write-down perpetual bonds issued in 2020[420](index=420&type=chunk) Corporate Governance [Share Capital Changes and Shareholder Information](index=101&type=section&id=Share%20Capital%20Changes%20and%20Shareholder%20Information) As of the reporting period, the Bank's total ordinary shares were 120,095,053,492, with A-shares at 83.47% and H-shares at 16.53%; a 130 billion yuan A-share private placement to specific entities was completed to supplement CET1 capital, with China Post Group remaining the controlling shareholder Total Ordinary Shares as of June 30, 2025 | Share Type | Number of Shares | Proportion (%) | | :--- | :--- | :--- | | Total Ordinary Shares | 120,095,053,492 | 100.00 | | A-shares | 100,238,886,492 | 83.47 | | H-shares | 19,856,167,000 | 16.53 | - In June 2025, the Bank completed the issuance of **20,933,977,454 A-shares** to the Ministry of Finance, China Mobile Communications Group Co., Ltd., and China State Shipbuilding Corporation Limited, raising a total of **130 billion yuan**, all used to supplement Common Equity Tier 1 capital[426](index=426&type=chunk) - China Post Group is the controlling shareholder and actual controller of the Bank, with a shareholding and voting rights ratio of **51.87%**[433](index=433&type=chunk)[443](index=443&type=chunk) [Corporate Governance Operations](index=109&type=section&id=Corporate%20Governance%20Operations) The Bank consistently optimizes corporate governance, holding 4 general meetings, 6 board meetings, and 5 supervisory board meetings, with 16 directors, 5 supervisors, and 7 senior executives; the Board proposed an interim cash dividend of RMB 1.230 per 10 shares (tax inclusive), totaling approximately 14.772 billion yuan - During the reporting period, the Bank held **4 general meetings**, **6 board meetings**, and **5 supervisory board meetings**, approving multiple proposals[456](index=456&type=chunk) - The Board of Directors consists of **16 directors**, the Supervisory Board consists of **5 supervisors**, and there are **7 senior management personnel**[457](index=457&type=chunk) - The Board of Directors proposed an interim cash dividend for 2025 of **RMB 1.230 per 10 ordinary shares (tax inclusive)**, with a total cash dividend of approximately **14.772 billion yuan (tax inclusive)**[469](index=469&type=chunk) [Environmental and Social Responsibility](index=112&type=section&id=Environmental%20and%20Social%20Responsibility) The Bank actively implements national "dual carbon" and green development strategies, promoting sustainable, green, and climate finance, with green loan balance reaching 958.639 billion yuan, growing 11.59% year-on-year. It also practices green operations, fosters employee well-being, and promotes a vibrant corporate culture - As of the end of the reporting period, **green loan balance was 958.639 billion yuan**, an increase of **11.59%** from the end of the previous year, with a growth rate consistently higher than the average for all loans for many years[473](index=473&type=chunk) - Successfully issued the first tranche of **5 billion yuan** green financial bonds in 2025 on the national interbank bond market[471](index=471&type=chunk)[477](index=477&type=chunk) - The annual reduction in carbon dioxide equivalent from green loans was **37.7826 million tons**[473](index=473&type=chunk) - The Bank continuously practices green operations, with quarterly green office inspections at the Head Office, promotion of carbon resource management systems, and a photovoltaic power generation system built at the Hefei base[480](index=480&type=chunk)[481](index=481&type=chunk) - The Bank focuses on its employees, organizing diverse cultural activities, promoting the spirit of model workers, continuously advancing women's employee initiatives, and showcasing employee talents in various forms[485](index=485&type=chunk)[486](index=486&type=chunk)[489](index=489&type=chunk)[495](index=495&type=chunk)[497](index=497&type=chunk)[499](index=499&type=chunk) [Significant Matters](index=118&type=section&id=Significant%20Matters) This section covers the Bank's consumer protection, integrity culture, internal control and audit, use of raised funds, major litigation, asset transactions, significant contracts, integrity status, "Quality Improvement, Efficiency Enhancement, and Return" action plan, commitments, auditor appointments, and related party transactions, highlighting continuous improvements in consumer protection, internal controls, and compliant fund usage, with no major litigation or asset acquisitions/disposals - The Bank continuously improved its consumer rights protection mechanisms, innovated financial education and publicity methods, with various levels of institutions cumulatively conducting over **81,000 online and offline financial education activities**, reaching over **540 million consumers**[505](index=505&type=chunk) - The Bank continuously deepened the construction of its internal control system, vigorously promoted intensive and intelligent reforms, and enhanced internal control management. The internal audit system is independent and vertical, serving the Bank's high-quality development with high-quality audit supervision[509](index=509&type=chunk)[511](index=511&type=chunk) - The raised funds were used in accordance with the purposes disclosed in the prospectus, namely to strengthen the Bank's capital base to support its continuous business growth[514](index=514&type=chunk) - During the reporting period, the Bank did not experience any litigation or arbitration that had a significant impact on its operations, nor did it undertake any major asset acquisitions, disposals, or mergers[515](index=515&type=chunk)[516](index=516&type=chunk) - The Bank actively responded to the "Quality Improvement, Efficiency Enhancement, and Return" special action, formulating a valuation enhancement plan to boost investment value through measures such as improving operational quality and efficiency, optimizing cash dividends, and strengthening investor relations management[520](index=520&type=chunk)[521](index=521&type=chunk) - During the reporting period, the Bank, China Mobile Group, and China State Shipbuilding Group diligently fulfilled their strategic cooperation agreements, promoting win-win cooperation[453](index=453&type=chunk) - The Bank signed the "Supplementary Agreement to the Framework Agreement for Agency Business of Agency Outlets (2025 Edition)" with China Post Group, proactively adjusting the savings agency fee rates for RMB individual deposit business[527](index=527&type=chunk) Financial Report and Others [Review Report on Condensed Consolidated Financial Statements](index=127&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Financial%20Statements) KPMG has reviewed the Bank's condensed consolidated financial statements in accordance with International Standard on Review Engagements 2410, concluding that nothing came to their attention to suggest the statements are not prepared, in all material respects, in accordance with IAS 34 - KPMG has reviewed the Bank's condensed consolidated financial statements in accordance with International Standard on Review Engagements 2410[544](index=544&type=chunk) - The review concluded that nothing came to their attention that causes them to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 — Interim Financial Reporting[545](index=545&type=chunk) [Condensed Consolidated Financial Statements](index=128&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Bank's condensed consolidated statements of profit or loss and other comprehensive income, financial position, changes in equity, and cash flows for the six months ended June 30, 2025, along with detailed notes, prepared in accordance with IFRS, reflecting financial performance, balance sheet structure, equity changes, and cash flow - The condensed consolidated financial statements include the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows[543](index=543&type=chunk) - The notes to the financial statements provide detailed information on the company's basic information, basis of preparation, significant accounting policies, various income and expense items, earnings per share, cash and bank balances, interbank transactions, derivatives, financial assets, loans, investments, property, deferred tax, liabilities, equity, dividends, cash equivalents, related party relationships and transactions, structured entities, contingent liabilities and commitments, transfer of financial assets, segment reporting, financial risk management, events after the balance sheet date, and reclassification of comparative figures[564](index=564&type=chunk)[571](index=571&type=chunk)[576](index=576&type=chunk)[579](index=579&type=chunk)[580](index=580&type=chunk)[581](index=581&type=chunk)[583](index=583&type=chunk)[586](index=586&type=chunk)[587](index=587&type=chunk)[590](index=590&type=chunk)[591](index=591&type=chunk)[592](index=592&type=chunk)[595](index=595&type=chunk)[596](index=596&type=chunk)[597](index=597&type=chunk)[599](index=599&type=chunk)[601](index=601&type=chunk)[615](index=615&type=chunk)[630](index=630&type=chunk)[633](index=633&type=chunk)[634](index=634&type=chunk)[638](index=638&type=chunk)[642](index=642&type=chunk)[646](index=646&type=chunk)[647](index=647&type=chunk)[648](index=648&type=chunk)[650](index=650&type=chunk)[651](index=651&type=chunk)[656](index=656&type=chunk)[662](index=662&type=chunk)[678](index=678&type=chunk)[679](index=679&type=chunk)[683](index=683&type=chunk)[685](index=685&type=chunk)[688](index=688&type=chunk)[689](index=689&type=chunk)[692](index=692&type=chunk)[720](index=720&type=chunk)[725](index=725&type=chunk)[727](index=727&type=chunk)[737](index=737&type=chunk)[743](index=743&type=chunk)[761](index=761&type=chunk)[864](index=864&type=chunk)[867](index=867&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=128&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Bank reported operating income of 179,525 million yuan, net profit of 49,415 million yuan, and net profit attributable to bank shareholders of 49,228 million yuan, with net interest income at 139,058 million yuan and net fee and commission income at 16,918 million yuan, resulting in total comprehensive income of 46,626 million yuan Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for H1 2025 | Item | 2025 (RMB million yuan) | 2024 (RMB million yuan) | | :--- | :--- | :--- | | Operating Income | 179,525 | 176,919 | | Net Profit | 49,415 | 48,885 | | Net Profit Attributable to Bank Shareholders | 49,228 | 48,815 | | Net Interest Income | 139,058 | 142,876 | | Net Fee and Commission Income | 16,918 | 15,161 | | Total Comprehensive Income for the Period | 46,626 | 51,383 | | Basic and Diluted Earnings Per Share (RMB yuan) | 0.43 | 0.44 | [Condensed Consolidated Statement of Financial Position](index=130&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Bank's total assets were 18,190,521 million yuan, total liabilities were 17,049,715 million yuan, and total shareholders' equity was 1,140,806 million yuan, with customer loans and advances at 9,309,437 million yuan, financial investments at 6,170,869 million yuan, and customer deposits at 16,108,809 million yuan Condensed Consolidated Statement of Financial Position as of June 30, 2025 | Item | June 30, 2025 (RMB million yuan) | December 31, 2024 (RMB million yuan) | | :--- | :--- | :--- | | Total Assets | 18,190,521 | 17,084,910 | | Customer Loans and Advances | 9,309,437 | 8,684,144 | | Financial Investments | 6,170,869 | 6,004,127 | | Total Liabilities | 17,049,715 | 16,053,261 | | Customer Deposits | 16,108,809 | 15,287,541 | | Total Shareholders' Equity | 1,140,806 | 1,031,649 | [Condensed Consolidated Statement of Changes in Equity](index=132&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to bank shareholders increased from 1,029,669 million yuan to 1,138,639 million yuan, primarily due to current period profit of 49,228 million yuan, ordinary share issuance of 129,962 million yuan, perpetual bond issuance of 29,998 million yuan, and perpetual bond redemption of 80,000 million yuan Condensed Consolidated Statement of Changes in Equity for H1 2025 | Item | January 1, 2025 (RMB million yuan) | Change (RMB million yuan) | June 30, 2025 (RMB million yuan) | | :--- | :--- | :--- | :--- | | Equity Attributable to Bank Shareholders | 1,029,669 | +108,970 | 1,138,639 | | Profit for the Period | - | +49,228 | - | | Issuance of Ordinary Shares | - | +129,962 | - | | Issuance of Perpetual Bonds | - | +29,998 | - | | Redemption of Perpetual Bonds | - | -80,000 | - | | Dividends Declared and Paid to Ordinary Shareholders | - | -11,294 | - | | Distributions to Holders of Perpetual Bonds | - | -6,135 | - | [Condensed Consolidated Statement of Cash Flows](index=135&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Bank reported net cash inflow from operating activities of 183,699 million yuan, net cash outflow from investing activities of 38,813 million yuan, and net cash inflow from financing activities of 66,968 million yuan, with cash and cash equivalents balance at period-end of 551,306 million yuan Condensed Consolidated Statement of Cash Flows for H1 2025 | Item | 2025 (RMB million yuan) | 2024 (RMB million yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 183,699 | 130,932 | | Net Cash Flow Used in Investing Activities | (38,813) | (197,933) | | Net Cash Flow from / (Used in) Financing Activities | 66,968 | (108,600) | | Cash and Cash Equivalents at End of Period | 551,306 | 277,632 | [Notes to the Condensed Consolidated Financial Statements](index=137&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the Bank's company information, basis of preparation, significant accounting policies, various income and expense items, earnings per share, cash and bank balances, interbank transactions, derivatives, financial assets, loans, investments, property, deferred tax, liabilities, equity, dividends, cash equivalents, related party transactions, structured entities, contingencies, asset transfers, segment reporting, financial risk management, post-balance sheet events, and reclassification of comparative figures - The Bank's 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 relevant disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[570](index=570&type=chunk) - For the six months ended June 30, 2025, the accounting policies and measurement methods adopted in the Group's condensed consolidated financial statements are consistent with those followed in the preparation of the Group's 2024 annual consolidated financial statements[571](index=571&type=chunk) - The notes provide detailed disclosures on the composition, changes, and risk management of various financial assets and liabilities, including customer loans, financial investments, deposits, and debt securities[601](index=601&type=chunk)[615](index=615&type=chunk)[651](index=651&type=chunk)[656](index=656&type=chunk) - The notes also include important information such as related party transactions, structured entities, contingent liabilities and commitments, and transfers of financial assets[692](index=692&type=chunk)[720](index=720&type=chunk)[725](index=725&type=chunk)[727](index=727&type=chunk)[737](index=737&type=chunk) [Appendix: Supplementary Information](index=260&type=section&id=Appendix%3A%20Supplementary%20Information) This appendix provides unaudited supplementary financial information, including liquidity ratios, currency concentration, international claims, and total overdue customer loans, along with Pillar 3 disclosures under the "Capital Rules for Commercial Banks," covering key prudential indicators, risk-weighted assets, capital instruments, and leverage and liquidity ratios - Supplementary information includes liquidity ratios, currency concentration, international claims, and total overdue customer loans and advances[869](index=869&type=chunk)[870](index=870&type=chunk)[871](index=871&type=chunk)[875](index=875&type=chunk) - Pillar 3 information, as required by the "Capital Rules for Commercial Banks," is disclosed, including key prudential regulatory indicators for consolidated supervision, an overview of risk-weighted assets, main features of capital instruments, capital composition, leverage ratio, liquidity coverage ratio, and net stable funding ratio[881](index=881&type=chunk)[883](index=883&type=chunk)[885](index=885&type=chunk)[887](index=887&type=chunk)[890](index=890&type=chunk)[895](index=895&type=chunk)[900](index=900&type=chunk)[902](index=902&type=chunk)[905](index=905&type=chunk)[907](index=907&type=chunk)[911](index=911&type=chunk)[912](index=912&type=chunk)[914](index=914&type=chunk)[921](index=921&type=chunk)[923](index=923&type=chunk) Key Prudential Regulatory Indicators as of June 30, 2025 | Indicator | June 30, 2025 (%) | | :--- | :--- | | Common Equity Tier 1 Capital Adequacy Ratio | 10.52 | | Tier 1 Capital Adequacy Ratio | 12.13 | | Capital Adequacy Ratio | 14.57 | | Leverage Ratio | 5.92 | | Liquidity Coverage Ratio | 223.29 | | Net Stable Funding Ratio | 168.56 |

Company Profile [Company Overview and Strategy](index=3&type=section&id=Company%20Overview%20and%20Strategy) Haitong UniTrust is a steadily developing large Chinese financial leasing company, a controlled subsidiary of Guotai Haitong Securities, committed to providing comprehensive financial services - The company is a large Chinese financial leasing company, a controlled subsidiary of Guotai Haitong Securities, listed on the Hong Kong Stock Exchange on June 3, 2019, and is China's first brokerage-backed financial leasing company[6](index=6&type=chunk)[7](index=7&type=chunk) - Its operational philosophy is "cross-industry thinking, innovation-driven, internal skill optimization, external trend seizing," with a "large and small" client development strategy and long-term goals of "specialization, conglomeration, internationalization, and digitalization"[6](index=6&type=chunk) - Business covers advanced manufacturing, engineering construction, energy conservation and environmental protection, urban utilities, transportation and logistics, culture and tourism, and healthcare, with eight business departments at headquarters, 21 branches nationwide, and several subsidiaries in Hong Kong, Tianjin, and Shanghai[6](index=6&type=chunk)[7](index=7&type=chunk) Company Information [Board of Directors and Supervisory Committee Members](index=4&type=section&id=Board%20of%20Directors%20and%20Supervisory%20Committee%20Members) The report lists the members of the company's Board of Directors (including executive, non-executive, and independent non-executive directors) and Supervisory Committee, noting Ms. Zhou Jianli's interim role as Chairperson - Ms. Zhou Jianli serves as an Executive Director and acts as Chairperson, a member of the Board's Risk Management Committee, Chairperson of the Board's Environmental, Social and Governance Committee, and legal representative[8](index=8&type=chunk) - The Board has Audit, Nomination, Remuneration and Appraisal, Risk Management, and Environmental, Social and Governance Committees[8](index=8&type=chunk) - Mr. Wu Xiangyang is the Chairman of the Supervisory Committee[8](index=8&type=chunk) [Professional Advisors and Registration Information](index=5&type=section&id=Professional%20Advisors%20and%20Registration%20Information) Discloses basic company information including legal advisors (Davis Polk & Wardwell, Jia Yuan Law Offices), auditor (Deloitte Touche Tohmatsu), H-share registrar, registered address, headquarters and principal place of business, company website, stock code, and listing date - Hong Kong legal advisor is Davis Polk & Wardwell, and Chinese legal advisor is Jia Yuan Law Offices[9](index=9&type=chunk) - The auditor is Deloitte Touche Tohmatsu[9](index=9&type=chunk) - The company's stock code is **1905**, listed on June 3, 2019[9](index=9&type=chunk) Financial Summary [Overview of Core Financial Data](index=6&type=section&id=Overview%20of%20Core%20Financial%20Data) Outlines key financial indicators for the six months ended June 30, 2025, and as of June 30, 2025, including revenue, profit for the period, total assets, total equity, earnings per share, net assets per share, average yield on interest-earning assets, weighted average return on net assets, asset-liability ratio, non-performing asset ratio, net interest margin, and net interest yield Core Financial Data for the Six Months Ended and as of June 30, 2025 | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change (YoY/HoH) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total revenue and other income, gains | 3,520.8 | 4,028.5 | - | - | (12.6%) YoY | | Profit for the period | 784.9 | 812.2 | - | - | (3.4%) YoY | | Total assets | - | - | 111,131.4 | 111,296.8 | (0.1%) HoH | | Total equity | - | - | 20,372.9 | 19,983.0 | 2.0% HoH | | Basic earnings per share (RMB/share) | 0.09 | 0.09 | - | - | 0% YoY | | Net assets per share (RMB/share) | - | - | 2.17 | 2.12 | - | | Average yield on interest-earning assets | 5.96% | 6.69% | - | - | (0.73) ppts YoY | | Weighted average return on net assets | 8.15% | 8.55% | - | - | (0.40) ppts YoY | | Asset-liability ratio | - | - | 81.67% | 82.05% | (0.38) ppts HoH | | Non-performing asset ratio | - | - | 1.16% | 1.17% | (0.01) ppts HoH | | Net interest margin | 3.02% | 3.16% | - | - | (0.14) ppts YoY | | Net interest yield | 3.44% | 3.62% | - | - | (0.18) ppts YoY | [Interim Condensed Consolidated Income Statement](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Income%20Statement) Details income, expenses, profit, and profitability indicators for the six months ended June 30, 2025, showing a **12.6%** year-on-year decrease in total revenue and other income, and a **3.4%** year-on-year decrease in profit for the period Key Data from Interim Condensed Consolidated Income Statement (Six Months Ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total revenue | 3,304.1 | 3,725.4 | (11.3%) | | Total revenue and other income, gains | 3,520.8 | 4,028.5 | (12.6%) | | Interest expense | (1,278.0) | (1,633.5) | (21.8%) | | Total expenses | (2,471.3) | (2,939.7) | (15.9%) | | Profit before income tax | 1,049.5 | 1,088.8 | (3.6%) | | Profit for the period | 784.9 | 812.2 | (3.4%) | | Return on average assets | 1.41% | 1.37% | - | | Weighted average return on net assets | 8.15% | 8.55% | - | | Cost-to-income ratio | 16.85% | 15.21% | - | | Net interest margin | 3.02% | 3.16% | - | | Net interest yield | 3.44% | 3.62% | - | [Interim Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Provides an overview of assets, liabilities, and equity as of June 30, 2025, showing a slight **0.1%** decrease in total assets, a **2.0%** increase in total equity, and a **0.6%** decrease in total liabilities Key Data from Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 58,601.6 | 58,109.9 | 0.8% | | Current assets | 52,529.8 | 53,186.9 | (1.2%) | | Total assets | 111,131.4 | 111,296.8 | (0.1%) | | Current liabilities | 51,269.7 | 53,133.4 | (3.5%) | | Non-current liabilities | 39,488.8 | 38,180.4 | 3.4% | | Total equity | 20,372.9 | 19,983.0 | 2.0% | | Net assets per share (RMB/share) | 2.17 | 2.12 | - | | Asset-liability ratio | 81.67% | 82.05% | - | | Non-performing asset ratio | 1.16% | 1.17% | - | | Non-performing asset provision coverage ratio | 310.49% | 316.17% | - | [Explanation of Financial Indicators](index=9&type=section&id=Explanation%20of%20Financial%20Indicators) Details the calculation methods for various financial indicators used in the report, including return on average assets, weighted average return on net assets, cost-to-income ratio, net interest margin, net interest yield, asset-liability ratio, non-performing asset ratio, and non-performing asset provision coverage ratio - Explains the calculation methods for return on average assets, weighted average return on net assets, cost-to-income ratio, pre-provision profit margin, and net profit margin[16](index=16&type=chunk) - Clarifies the calculation methods for average yield on interest-earning assets, average interest rate on interest-bearing liabilities, net interest margin, and net interest yield[16](index=16&type=chunk) - Defines the calculation formulas for asset-liability ratio, debt-to-equity ratio, non-performing asset ratio, and non-performing asset provision coverage ratio[16](index=16&type=chunk) Chairman's Statement [Macroeconomic Environment and Company Performance](index=10&type=section&id=Macroeconomic%20Environment%20and%20Company%20Performance) During the reporting period, the global economy faced challenges, while China's economy maintained steady growth and progressed towards high-quality development - Global geopolitical conflicts, trade protectionism, and financial market volatility intensified, while China's economy maintained steady growth and moved towards high-quality development[19](index=19&type=chunk) Company's Key Financial Performance in H1 2025 | Indicator | Amount (RMB million) | | :--- | :--- | | Total revenue and other income, gains | 3,520.8 | | Profit for the period | 784.9 | | Total assets | 111,131.4 | | Total equity | 20,372.9 | | Non-performing asset ratio | 1.16% | | Non-performing asset provision coverage ratio | 310.49% | - The company was awarded the Shanghai "2024 Huangpu Economic High-Quality Development Top 100 Award" and the "Green Efficiency Outstanding Action Institution Award"[21](index=21&type=chunk) [Strategic Synergy and Business Transformation](index=11&type=section&id=Strategic%20Synergy%20and%20Business%20Transformation) The company strengthened synergy with Guotai Haitong Securities, enhanced industrial research capabilities, deeply revitalized client resources, and deepened strategic collaboration between securities and leasing - Strengthened synergy with Guotai Haitong Securities, leveraging its "investment banking-investment-research" system to enhance industrial research and deeply revitalize client resources[21](index=21&type=chunk) - Actively participated in industry exchanges such as the Yangtze River Delta G60 Sci-Tech Innovation Corridor ESG Development Alliance and Lujiazui Forum, launched "Sci-Tech Lease" products, and signed cooperation agreements with Chinese and foreign banks[21](index=21&type=chunk) - Awarded the "Green Efficiency Outstanding Action Institution Award" and multiple "Green Efficiency Contribution Awards" by the Shanghai Green Finance Service Platform[21](index=21&type=chunk) [Financing and Risk Management](index=11&type=section&id=Financing%20and%20Risk%20Management) The company continuously expanded diversified financing channels, optimized debt structure, reduced financing costs, and successfully implemented multiple innovative financing projects - Expanded diversified financing channels, optimized debt structure, with an average interest rate on interest-bearing liabilities of **2.94%**, a **0.59 percentage point** decrease year-on-year[22](index=22&type=chunk) - Successfully launched the industry's first "ESG + Two Heavies and Two News" syndicated loan, signed environmental special syndicated loans with the New Development Bank and Bank of China, and issued green asset-backed plans and digital economy sci-tech bonds[22](index=22&type=chunk) - Received four "Golden Spring Awards" from the Leasing Industry Association, including the "Annual Best Innovative Financing Project Award"[22](index=22&type=chunk) - Continuously increased investment in financial technology, promoting intelligent pre-lease approval and AI-powered post-lease monitoring to enhance comprehensive management efficiency[22](index=22&type=chunk) - Proposed to distribute an interim dividend of **RMB 0.42 per 10 shares** for 2025, sharing development achievements with shareholders[23](index=23&type=chunk) Management Discussion and Analysis [Operating Environment](index=13&type=section&id=Operating%20Environment) In the first half of 2025, global economic growth slowed, while China's economy maintained steady recovery amidst a complex external environment, with proactive macroeconomic policies - In H1 2025, global economic growth momentum slowed, China's GDP grew by **5.3%** year-on-year, with industrial production and high-tech manufacturing growing by **6.4%** and **9.5%** respectively[25](index=25&type=chunk)[26](index=26&type=chunk) - Macroeconomic policy maintained a "moderately loose" stance, with the over-5-year LPR lowered by **10 basis points to 3.5%**, and the weighted average interest rate for new corporate loans from January to June was approximately **3.3%**, a historical low[27](index=27&type=chunk) - The regulatory environment remained generally strict, with the National Financial Regulatory Administration issuing the "Measures for Compliance Management of Financial Institutions" and other regulations, focusing on business standardization and consumer rights protection[29](index=29&type=chunk) - The total number of financial leasing companies was approximately **7,020**, a **4.5%** decrease from the end of last year; contract balance was approximately **RMB 5.424 trillion**, a slight **0.7%** decrease[30](index=30&type=chunk)[32](index=32&type=chunk) Strategic emerging industries (new energy, new generation information technology, high-end equipment manufacturing, green environmental protection) brought new development opportunities[32](index=32&type=chunk) [Development Review](index=15&type=section&id=Development%20Review) During the reporting period, the company adhered to Party building leadership, optimized asset structure, focused on national strategy and the real economy, and deepened its layout in industry sub-segments [Party Building Leadership and Asset Structure Optimization](index=15&type=section&id=Party%20Building%20Leadership%20and%20Asset%20Structure%20Optimization) The company adhered to Party building leadership, focused on serving national strategy and the real economy, deeply cultivated industry sub-segments around the "Five Key Financial Initiatives," actively adjusted business deployment, and optimized asset structure, particularly increasing investment in strategic emerging areas such as advanced manufacturing, green leasing, digital economy, and sci-tech leasing - In H1 2025, total revenue and other income, gains reached **RMB 3,520.8 million**, with profit for the period at **RMB 784.9 million**[34](index=34&type=chunk) - As of June 30, 2025, total assets were **RMB 111,131.4 million**, and total equity was **RMB 20,372.9 million**, a **2.0%** increase from the end of last year[34](index=34&type=chunk) - Focused on the "Five Key Financial Initiatives," deepened the layout of strategic emerging and future industries, achieving further breakthroughs in cutting-edge scenarios such as hydrogen heavy trucks, hydrogen buses, and new energy mining trucks[35](index=35&type=chunk) H1 2025 Strategic Emerging Sector Business Deployment and Balance | Business Sector | New Deployment (RMB billion) | Year-on-Year Growth | Interest-Earning Asset Balance as of June 30, 2025 (RMB billion) | | :--- | :--- | :--- | :--- | | Advanced Manufacturing | 7.203 | 37.2% | 20.250 | | Green Leasing | 3.404 | - | 18.974 | | Digital Economy | 0.550 | - | 4.717 | | Sci-Tech Leasing | 2.606 | - | 6.808 | [Resource Integration and Strategic Synergy](index=16&type=section&id=Resource%20Integration%20and%20Strategic%20Synergy) After the change of indirect controlling shareholder to Guotai Haitong Securities, the company actively aligned with the new governance system, strengthened synergistic linkage with the parent company, and explored "investment banking + financial leasing" and "investment + financial leasing" collaboration schemes - Indirect controlling shareholder changed to Guotai Haitong Securities, actively aligning with its governance system and operational management requirements, strengthening the "investment banking-investment-research" system synergy[38](index=38&type=chunk) - Explored feasible "investment banking + financial leasing" and "investment + financial leasing" synergy schemes, forming a combined force in client resource sharing, joint marketing, and investment-financing integration[40](index=40&type=chunk) - Participated in the Yangtze River Delta G60 Sci-Tech Innovation Corridor ESG Development Alliance and was elected as a Vice Chairman unit, invited to the 2025 Lujiazui Forum, and launched "Sci-Tech Lease" products[41](index=41&type=chunk) - Awarded the "Green Efficiency Outstanding Action Institution Award" and multiple "Green Efficiency Contribution Awards" by the Shanghai Green Finance Service Platform[41](index=41&type=chunk) [Financing Cost Optimization and Innovation](index=17&type=section&id=Financing%20Cost%20Optimization%20and%20Innovation) The company continuously expanded diversified financing channels, optimized debt structure, and significantly reduced financing costs - As of June 30, 2025, established credit relationships with **64 financial institutions**, cumulatively obtaining credit lines of approximately **RMB 112.7 billion**, of which unused credit lines were approximately **RMB 58.6 billion**[42](index=42&type=chunk) - In H1 2025, the average interest rate on interest-bearing liabilities was **2.94%**, a **0.59 percentage point** decrease from the same period last year, further reducing financing costs[43](index=43&type=chunk) - Successfully launched the industry's first "ESG + Two Heavies and Two News" syndicated loan, and signed environmental special syndicated loan agreements with the New Development Bank and Bank of China[44](index=44&type=chunk) - Successfully issued "Haitong UniTrust No. 30 Green Asset-Backed Special Plan" and "Haitong UniTrust Sci-Tech Innovation Corporate Bond (Digital Economy)"[44](index=44&type=chunk) - Received four "Golden Spring Awards" from the Leasing Industry Association, including "Annual Best Financial Leasing Industry Bond Originator Award" and "Annual Best Innovative Financing Project Award"[44](index=44&type=chunk) [Comprehensive Risk Management and Compliance Governance](index=18&type=section&id=Comprehensive%20Risk%20Management%20and%20Compliance%20Governance) The company adheres to a prudent and proactive risk management philosophy, continuously improving its comprehensive risk management system and enhancing full-process risk control capabilities - Adhered to a prudent, proactive, full-cycle, and full-process risk management philosophy, continuously promoting the improvement of the comprehensive risk management system[45](index=45&type=chunk) - As of June 30, 2025, the non-performing asset ratio was **1.16%**, a **0.01 percentage point** decrease from the end of last year, with a non-performing asset provision coverage ratio of **310.49%**, maintaining stable asset quality[47](index=47&type=chunk) - Upholding the compliance philosophy of "all-staff compliance, compliance starts from management, compliance creates value, and compliance is the foundation of the company's survival," compliance management was strengthened through measures such as sound institutional systems, compliance reviews, assessments, and training[48](index=48&type=chunk) [Financial Technology and ESG Management](index=19&type=section&id=Financial%20Technology%20and%20ESG%20Management) The company focuses on enhancing the digitalization and intelligence of its entire business process, building a unified client management system and business middle platform, and deploying large AI models to achieve intelligent pre-lease approval and AI-powered post-lease monitoring - Built a unified client management system, created business, financial, and operational middle platforms, deployed large AI models, and promoted intelligent pre-lease approval and AI-powered post-lease monitoring[49](index=49&type=chunk)[50](index=50&type=chunk) - Actively fulfilled corporate social responsibility, organized public welfare activities such as "Youth Relay, Love Transmission," further enhancing the "Heng Chuxin" public welfare brand[51](index=51&type=chunk) - Operating its ESG management system stably under the sustainable development philosophy of "Enduring Mutual Trust, Converging for the Future," achieving a Wind ESG 2024 annual rating of **A**, positioning it at an industry-leading level[51](index=51&type=chunk) [Business Outlook](index=20&type=section&id=Business%20Outlook) Looking ahead to the second half of 2025, the global economy still faces challenges, but emerging industries present development opportunities [Promoting Industrial Transformation and Asset Structure Optimization](index=21&type=section&id=Promoting%20Industrial%20Transformation%20and%20Asset%20Structure%20Optimization) The company will firmly adhere to the essence of leasing, implement the "large and small" client development strategy, focus on its core business and the "Five Key Financial Initiatives" - Firmly rooted in the essence of leasing, implementing the "large and small" client development strategy, focusing on core business, and continuously excelling in the "Five Key Financial Initiatives"[55](index=55&type=chunk) - Emphasizing the "financing of goods" attribute, increasing investment in vendor leasing, raising the proportion of direct leasing business, and assisting real enterprises in equipment renewal and revitalizing existing assets[55](index=55&type=chunk) - Seizing national opportunities for large-scale equipment renewal, further exploring the financial leasing demands of high-quality enterprises in advanced manufacturing, green energy, digital economy, and ecological environmental protection[56](index=56&type=chunk) [Deepening Marketing Network Layout and Strategic Synergy](index=22&type=section&id=Deepening%20Marketing%20Network%20Layout%20and%20Strategic%20Synergy) The company will continue to deepen its "one body, two wings" marketing network layout, cultivate regional characteristic industries, and accelerate localized industrial deployment - Continued to uphold the principle of "serving local economy, serving real enterprises, serving regional characteristics," deepening the "one body, two wings" marketing network layout, and accelerating localized industrial deployment[57](index=57&type=chunk) - Business headquarters and divisions will continue to focus on their respective core industries, deeply grasp industry policies and market dynamics, and promote the batch replication of innovative businesses[57](index=57&type=chunk) - Small and micro subsidiaries will deeply cultivate industrial equipment, engineering equipment, healthcare, and consumer sectors, continuously iterating inclusive leasing products and expanding the national inclusive business network[59](index=59&type=chunk) - Hengyun subsidiary will deeply cultivate the transportation and logistics sector, seizing opportunities in the new energy vehicle track, deepening green energy layout around solar, storage, charging, and swapping scenarios, and perfecting the green travel industry ecosystem[59](index=59&type=chunk) [Risk Control and Compliance Management](index=23&type=section&id=Risk%20Control%20and%20Compliance%20Management) The company will continuously optimize its comprehensive risk management system, enhancing its capabilities in risk identification, assessment, monitoring, and response - Continuously optimized risk management policies and processes, constantly enhancing the ability to accurately identify, prudently assess, dynamically monitor, and timely respond to risks[61](index=61&type=chunk) - Continuously enhanced risk prevention and mitigation capabilities by strengthening asset inspection and follow-up, and empowering asset management with technology[61](index=61&type=chunk) - Actively monitored changes in the regulatory environment, strictly implemented industry regulatory policies, continuously optimized the compliance management system, and enhanced the granularity of group-wide compliance control[61](index=61&type=chunk) [Expansion of Financing Channels and Liquidity Management](index=23&type=section&id=Expansion%20of%20Financing%20Channels%20and%20Liquidity%20Management) The company will continuously broaden financing channels, promote innovation in financing tools and models, and optimize credit conditions to effectively control financing costs - Continuously broadened financing channels, promoted innovation in financing tools and models, optimized credit conditions, enriched financing varieties, and achieved effective control of financing costs[62](index=62&type=chunk) - Strengthened proactive liquidity risk management capabilities, maintaining dynamic balance in asset-liability structure through stress tests, sensitivity analysis, and other tools, upholding the bottom line of no liquidity risk incidents[62](index=62&type=chunk) [Financial Technology and Intelligent Development](index=23&type=section&id=Financial%20Technology%20and%20Intelligent%20Development) The company will maintain strategic investment in financial technology, accelerate the modularization of system construction, and deepen AI empowerment in business - Maintained strategic investment in financial technology construction, continuously accelerating system modularization and deepening AI empowerment in business, fully supporting high-quality business development through technology architecture upgrades and intelligent application implementation[63](index=63&type=chunk) - Continuously promoted modular construction of the business middle platform to support diversified business development; upgraded financial middle platform capabilities to deepen business-finance integration[63](index=63&type=chunk)[64](index=64&type=chunk) - Further expanded AI application scenarios, focusing on building an "AI+" intelligent marketing system for institutional businesses, constructing an AI pre-approval system, and creating AI intelligent agents for automated asset monitoring, inspection, and early warning[64](index=64&type=chunk) [Iteration of Talent Development System](index=24&type=section&id=Iteration%20of%20Talent%20Development%20System) The company will continuously iterate its talent development system, building a high-quality, diversified talent team through a combination of recruitment and cultivation, innovation-driven approaches, systematic empowerment, and digital transformation - Adhered to a dual approach of recruitment and cultivation, building a high-quality, diversified talent pool through social recruitment and independent training, focusing on precise talent supply for key positions[65](index=65&type=chunk) - Maintained an innovation-driven approach, fostering a positive atmosphere for innovation and efficiency, establishing innovation collaboration mechanisms through "Innovation Talent Competitions"[65](index=65&type=chunk) - Accelerated digital transformation of human resources, promoting the deployment and construction of digital HR systems to provide strong support for strategic decision-making[66](index=66&type=chunk) - Continuously enhanced the competitive advantage of its compensation and benefits system and employee incentive system, attracting, retaining, and motivating top industry talent, and building reasonable and smooth career development channels[66](index=66&type=chunk) [Analysis of Interim Condensed Consolidated Income Statement](index=25&type=section&id=Analysis%20of%20Interim%20Condensed%20Consolidated%20Income%20Statement) Provides a detailed analysis of the company's key financial indicators for the first half of 2025, including revenue, expenses, profit for the period, and net interest yield [Income Statement Overview](index=25&type=section&id=Income%20Statement%20Overview) In the first half of 2025, the company's total revenue and other income, gains were **RMB 3,520.8 million**, and profit for the period was **RMB 784.9 million** H1 2025 Interim Condensed Consolidated Income Statement Overview | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total revenue | 3,304.1 | 3,725.4 | (11.3%) | | Total revenue and other income, gains | 3,520.8 | 4,028.5 | (12.6%) | | Interest expense | (1,278.0) | (1,633.5) | (21.8%) | | Total expenses | (2,471.3) | (2,939.7) | (15.9%) | | Profit for the period | 784.9 | 812.2 | (3.4%) | [Total Revenue and Other Income, Gains](index=26&type=section&id=Total%20Revenue%20and%20Other%20Income%2C%20Gains) In the first half of 2025, the company's total revenue and other income, gains were **RMB 3,520.8 million**, a **12.6%** year-on-year decrease - In H1 2025, total revenue and other income, gains reached **RMB 3,520.8 million**, a **12.6%** decrease from the same period last year[68](index=68&type=chunk) Composition and Change of Total Revenue (Six Months Ended June 30) | Business Type | 2025 (RMB million) | % of Total Revenue | 2024 (RMB million) | % of Total Revenue | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial leasing business income | 2,811.3 | 85.1% | 3,294.1 | 88.5% | (14.7%) | | Operating lease income | 316.3 | 9.6% | 302.3 | 8.1% | 4.6% | | Service fee income | 176.5 | 5.3% | 127.6 | 3.4% | 38.3% | | Other interest income | 0.0 | 0.0% | 1.4 | 0.0% | (100.0%) | - The average yield in H1 2025 was **5.96%**, a **0.73 percentage point** decrease from **6.69%** in the same period last year, mainly due to the moderately loose national macroeconomic policy, declining average market interest rates, and the company's optimized industrial layout, upgraded client tiers, and concessions to the real economy[82](index=82&type=chunk) - Operating lease income increased by **4.6%** to **RMB 316.3 million**, primarily due to the continued recovery of the global aviation industry[86](index=86&type=chunk) - Service fee income increased by **38.3%** to **RMB 176.5 million**, mainly from advanced manufacturing, engineering construction, energy conservation and environmental protection, transportation and logistics, culture and tourism, urban utilities, and healthcare sectors[88](index=88&type=chunk) [Expense Analysis](index=30&type=section&id=Expense%20Analysis) In the first half of 2025, the company's total expenses were **RMB 2,471.3 million**, a **15.9%** year-on-year decrease, primarily benefiting from reduced interest expenses and expected credit losses Expense Details (Six Months Ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Depreciation and amortization | 195.2 | 194.4 | 0.4% | | Staff costs | 382.1 | 400.2 | (4.5%) | | Interest expense | 1,278.0 | 1,633.5 | (21.8%) | | Other operating expenses | 158.7 | 154.4 | 2.8% | | Expected credit losses | 451.0 | 548.2 | (17.7%) | | Other impairment losses | 6.3 | 9.0 | (30.0%) | | Total expenses | 2,471.3 | 2,939.7 | (15.9%) | - Interest expense was **RMB 1,278.0 million**, a **21.8%** decrease from the same period last year, mainly due to a slight reduction in the average scale of interest-bearing liabilities and lower new financing costs[94](index=94&type=chunk) - Expected credit losses were **RMB 451.0 million**, a **17.7%** decrease from the same period last year, reflecting stable asset quality[96](index=96&type=chunk) [Profit for the Period](index=31&type=section&id=Profit%20for%20the%20Period) In the first half of 2025, the company's profit for the period was **RMB 784.9 million**, a **3.4%** year-on-year decrease - Profit for the period in H1 2025 was **RMB 784.9 million**, a **3.4%** decrease from **RMB 812.2 million** in the same period last year[97](index=97&type=chunk) - The decline in profit was mainly due to a decrease in total revenue and other income, gains, resulting from a reduction in the average balance of financial leasing receivables and average yield, but partially offset by cost reduction and efficiency improvement, optimized debt structure, lower financing costs, and expense control[97](index=97&type=chunk) [Net Interest Yield and Net Interest Margin on Interest-Earning Assets](index=32&type=section&id=Net%20Interest%20Yield%20and%20Net%20Interest%20Margin%20on%20Interest-Earning%20Assets) In the first half of 2025, the company's net interest margin and net interest yield were **3.02%** and **3.44%** respectively, decreasing by **0.14** and **0.18 percentage points** year-on-year Net Interest Margin and Net Interest Yield (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net interest margin | 3.02% | 3.16% | | Net interest yield | 3.44% | 3.62% | - The decline in net interest margin and net interest yield was mainly due to the overall downward trend in market interest rates, intense competition for high-quality assets, the company's continuous optimization of asset allocation, upgrading of client tiers, and concessions to the real economy, resulting in a slight decrease in profitability[102](index=102&type=chunk) [Analysis of Interim Condensed Consolidated Statement of Financial Position](index=33&type=section&id=Analysis%20of%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Provides a detailed analysis of the company's asset, liability, and equity composition and changes as of June 30, 2025 [Statement of Financial Position Overview](index=33&type=section&id=Statement%20of%20Financial%20Position%20Overview) As of June 30, 2025, the company's total assets were **RMB 111,131.4 million**, largely stable compared to the end of last year H1 2025 Interim Condensed Consolidated Statement of Financial Position Overview | Indicator | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 58,601.6 | 58,109.9 | 0.8% | | Total current assets | 52,529.8 | 53,186.9 | (1.2%) | | Total assets | 111,131.4 | 111,296.8 | (0.1%) | | Total current liabilities | 51,269.7 | 53,133.4 | (3.5%) | | Total non-current liabilities | 39,488.8 | 38,180.4 | 3.4% | | Total equity | 20,372.9 | 19,983.0 | 2.0% | [Asset Analysis](index=35&type=section&id=Asset%20Analysis) As of June 30, 2025, the company's total assets remained stable - As of June 30, 2025, total assets were **RMB 111,131.4 million**, largely stable compared to the end of last year, indicating a robust asset scale[107](index=107&type=chunk) - The book value of financial leasing receivables was **RMB 91,004.7 million**, a slight increase from **RMB 90,692.7 million** at the end of last year[108](index=108&type=chunk) Interest-Earning Asset Balance by Industry (As of June 30, 2025) | Industry | Balance (RMB million) | % of Total | Change from Year-End | | :--- | :--- | :--- | :--- | | Advanced Manufacturing | 20,250.2 | 21.5% | 2.0% Growth | | Engineering Construction | 19,736.4 | 20.9% | 1.8% Growth | | Energy & Environmental Protection | 17,803.4 | 18.9% | 4.4% Growth | | Urban Utilities | 11,741.8 | 12.4% | (1.5%) Decline | | Transportation & Logistics | 11,050.6 | 11.7% | 1.5% Growth | | Culture & Tourism | 7,626.8 | 8.1% | (1.1%) Decline | | Healthcare | 5,247.8 | 5.6% | (17.0%) Decline | - The balance of financial leasing receivables from large and medium-sized clients increased from the end of last year, accounting for **91.0%**, as the company continuously optimized asset allocation and upgraded client tiers[126](index=126&type=chunk) - The book value of property and equipment was **RMB 6,727.0 million**, a **2.8%** decrease from the end of last year, primarily due to depreciation and amortization of property and equipment recognized during the period[129](index=129&type=chunk) - The book value of cash and bank balances was **RMB 7,332.0 million**, a **2.0%** decrease from the end of last year, mainly due to dynamic adjustments made by the Group in consideration of future operational needs and liquidity safety assurance[133](index=133&type=chunk) [Liability Analysis](index=43&type=section&id=Liability%20Analysis) As of June 30, 2025, the company's total liabilities were **RMB 90,758.5 million**, a slight **0.6%** decrease from the end of last year - As of June 30, 2025, total liabilities were **RMB 90,758.5 million**, a slight **0.6%** decrease from **RMB 91,313.8 million** at the end of last year[134](index=134&type=chunk) - Loan balance was **RMB 40,472.9 million**, largely stable compared to the end of last year, with current loans accounting for **56.1%** of total loans, indicating a stable financing strategy and reasonable debt structure[136](index=136&type=chunk)[137](index=137&type=chunk) - Bond payable balance was **RMB 40,549.2 million**, largely stable compared to the end of last year, with current bonds payable accounting for **58.3%**[138](index=138&type=chunk)[139](index=139&type=chunk) - Other liabilities totaled **RMB 9,287.6 million**, a **4.4%** decrease from the end of last year, mainly due to a reduction in client deposits and notes payable[140](index=140&type=chunk) [Equity Analysis](index=46&type=section&id=Equity%20Analysis) As of June 30, 2025, the company's total equity was **RMB 20,372.9 million**, a **2.0%** increase from the end of last year, primarily benefiting from the increase in profit for the period, partially offset by dividend distribution - As of June 30, 2025, total equity was **RMB 20,372.9 million**, a **2.0%** increase from **RMB 19,983.0 million** at the end of last year[141](index=141&type=chunk) - The increase in equity was mainly due to the Group's profit for the period in H1 2025 increasing total equity, partially offset by dividend distribution reducing total equity[141](index=141&type=chunk) [Analysis of Interim Condensed Consolidated Cash Flow Statement](index=47&type=section&id=Analysis%20of%20Interim%20Condensed%20Consolidated%20Cash%20Flow%20Statement) In the first half of 2025, the company reported a net cash inflow from operating activities of **RMB 999.7 million**, a net cash outflow from investing activities of **RMB 47.8 million**, and a net cash outflow from financing activities of **RMB 1,025.9 million** Cash Flow Overview (Six Months Ended June 30) | Activity Type | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 999.7 | 10,525.3 | | Net cash generated from/(used in) investing activities | (47.8) | 735.0 | | Net cash generated from/(used in) financing activities | (1,025.9) | (11,796.3) | | Net decrease in cash and cash equivalents | (74.0) | (536.0) | - Net cash inflow from operating activities was **RMB 999.7 million**, primarily due to the gradual recovery of lease payments from earlier business deployments, where recovered lease payments exceeded cash outflows for business deployments[143](index=143&type=chunk) - Net cash outflow from investing activities was **RMB 47.8 million**, mainly reflecting the acquisition of financial assets, property, and equipment, partially offset by proceeds from the disposal of financial assets[144](index=144&type=chunk) - Net cash outflow from financing activities was **RMB 1,025.9 million**, mainly reflecting the repayment of loans, bonds, and interest, partially offset by proceeds from new loans and bond issuances[144](index=144&type=chunk) [Capital Management](index=48&type=section&id=Capital%20Management) The company manages capital by optimizing its debt and shareholder equity structure to ensure continuous operation and maximize shareholder returns - The company manages capital by optimizing its debt and shareholder equity structure to ensure the Group's subsidiaries can continue operations and maximize shareholder returns[145](index=145&type=chunk) - As of June 30, 2025, the ratio of the Group's total risk assets to net assets did not violate the provisions of relevant laws and regulations[145](index=145&type=chunk) [Capital Expenditure](index=48&type=section&id=Capital%20Expenditure) In the first half of 2025, the company's capital expenditure was **RMB 7.6 million**, primarily for the acquisition of property and equipment, and intangible assets - In H1 2025, the Group's capital expenditure was **RMB 7.6 million**, mainly due to the acquisition of property and equipment, intangible assets, and other items[146](index=146&type=chunk) [Risk Management](index=48&type=section&id=Risk%20Management) The company adheres to a prudent risk management philosophy, establishing a comprehensive risk management system covering credit risk, compliance risk, liquidity risk, interest rate risk, exchange rate risk, operational risk, and reputational risk [Credit Risk](index=49&type=section&id=Credit%20Risk) Credit risk is the primary risk faced by the company - Credit risk is the most significant risk type faced by the Group in its business operations, and asset structure optimization is promoted by focusing on key industries, key clients, and key regions for reasonable asset allocation[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - Optimized the credit review guidance system, adhering to a "industry + client + leased asset" three-dimensional evaluation system, strengthened the introduction of direct leasing business, and designed product guidelines for new types of business[152](index=152&type=chunk) - Continuously strengthened post-lease management through IoT device monitoring, public opinion monitoring, and post-lease inspections, enhancing proactive risk management capabilities for "early identification, early warning, early exposure, and early disposal"[154](index=154&type=chunk) Five-Tier Classification Details of Interest-Earning Assets (As of June 30, 2025) | Classification | Amount (RMB million) | % of Total | | :--- | :--- | :--- | | Normal | 91,113.9 | 96.52% | | Watch | 2,193.0 | 2.32% | | Substandard | 442.8 | 0.47% | | Doubtful | 641.9 | 0.68% | | Loss | 8.8 | 0.01% | | Total | 94,400.4 | 100.00% | - As of June 30, 2025, the non-performing asset ratio was **1.16%**, a **0.01 percentage point** decrease from the end of 2024, achieving a dual decline in both non-performing asset balance and ratio[163](index=163&type=chunk)[164](index=164&type=chunk) The non-performing asset provision coverage ratio was **310.49%**[164](index=164&type=chunk) - As of June 30, 2025, the balance of technology finance assets was **RMB 6.808 billion**, green finance assets **RMB 18.974 billion**, inclusive finance assets **RMB 10.996 billion**, and digital finance assets **RMB 4.717 billion**[166](index=166&type=chunk) - As of June 30, 2025, the top three interest-earning asset segments by scale were advanced manufacturing, engineering construction, and energy conservation and environmental protection, collectively accounting for **61.3%**, an increase of **1.5 percentage points** from the end of last year[167](index=167&type=chunk) [Compliance Risk](index=56&type=section&id=Compliance%20Risk) Compliance risk refers to the risk of potential losses due to failure to comply with laws, regulations, and regulatory requirements - In H1 2025, the Group continuously optimized its compliance management system, revising and issuing the "Compliance Manual," "Measures for the Management of Non-Performing Asset Liability Determination," and "Measures for the Management of Integrity in Practice"[173](index=173&type=chunk) - Organized the construction of compliance management systems for subsidiaries and completed the appointment of the first batch of part-time compliance personnel in key units, contributing to the deeper implementation of the three lines of defense for compliance management[173](index=173&type=chunk) [Liquidity Risk](index=57&type=section&id=Liquidity%20Risk) Liquidity risk refers to the risk of being unable to obtain sufficient funds in a timely manner - For medium-to-long-term liquidity risk, implemented asset-liability structure management, liability maturity structure management, and credit line management, while emphasizing cooperation with various financial institutions to maintain multi-market, multi-channel financing reserves[178](index=178&type=chunk) - For intraday liquidity risk, implemented daily monitoring of fund outflows and inflows, prudently managed internal liquidity reserves, and established a liquidity risk control indicator system and emergency plans[178](index=178&type=chunk)[179](index=179&type=chunk) - In H1 2025, the Group's liquidity situation was good, and its liquidity risk management capabilities continuously improved[179](index=179&type=chunk) [Interest Rate Risk](index=58&type=section&id=Interest%20Rate%20Risk) Interest rate risk refers to the risk of impaired earnings due to unfavorable changes in interest rates - Calculated interest rate sensitivity gaps using interest rate sensitivity analysis and managed asset-liability structure in a coordinated manner to reasonably control interest rate sensitivity gaps[180](index=180&type=chunk) - The Group's business contracts with clients and loan agreements with borrowing banks are primarily denominated in RMB and use LPR as the floating interest rate benchmark, making overall interest rate repricing risk controllable[180](index=180&type=chunk) - The Group uses interest rate swaps to hedge interest rate risk; as of June 30, 2025, the notional amount of interest rate swaps was **RMB 1,172.7 million**[180](index=180&type=chunk) [Exchange Rate Risk](index=58&type=section&id=Exchange%20Rate%20Risk) Exchange rate risk primarily arises from currency mismatches in assets and liabilities - The primary source of exchange rate risk is currency mismatches in assets and liabilities, mainly affected by fluctuations in the RMB exchange rate against the USD, HKD, or JPY[181](index=181&type=chunk) - Adhered to the principle of risk neutrality, identifying and measuring the impact of exchange rate changes on operations through exchange rate sensitivity analysis, matching assets and liabilities denominated in different currencies, and locking in exchange rate risk through foreign exchange derivatives[181](index=181&type=chunk) - As of June 30, 2025, the notional amount of the Group's forward foreign exchange contracts was **RMB 128.5 million**[183](index=183&type=chunk) [Operational Risk](index=59&type=section&id=Operational%20Risk) Operational risk refers to the risk of losses due to inadequate or failed internal processes, personnel, and systems, or external events - Optimized departmental operational risk identification, assessment, measurement, monitoring, response, and reporting procedures by reviewing and systematically enhancing various policies and processes[184](index=184&type=chunk) - Continuously improved relevant information systems to enhance overall operational risk management; strengthened training and assessment for operational risk management to raise all employees' proactive management awareness and risk responsibility[184](index=184&type=chunk) - In H1 2025, the Group's operational risk situation was good, with no major operational risk incidents[184](index=184&type=chunk) [Reputational Risk](index=59&type=section&id=Reputational%20Risk) Reputational risk refers to the risk of negative public perception from stakeholders due to the company's operations, management, other actions, or external events - Formulated relevant management policies, clarifying the identification, monitoring, assessment, reporting, and handling mechanisms for major reputational risk incidents[185](index=185&type=chunk) - Assigned dedicated personnel responsible for managing media-related affairs and utilized big data and public opinion monitoring systems to closely monitor and properly handle reputational incidents[185](index=185&type=chunk) - In H1 2025, the Group's overall public opinion environment was healthy, with no major reputational risk incidents[185](index=185&type=chunk) [Human Resources](index=59&type=section&id=Human%20Resources) As of June 30, 2025, the company had **1,476** full-time employees, with **93.6%** holding a bachelor's degree or higher - As of June 30, 2025, the Group had **1,476** full-time employees, with approximately **93.6%** holding a bachelor's degree or higher[186](index=186&type=chunk) - Established a three-in-one training management system covering training policies, resources, and operations, conducting **138** training programs with **14,170** employee participations[187](index=187&type=chunk) - During the reporting period, the Group's staff costs were **RMB 382.1 million**, a **4.5%** decrease from the same period last year[188](index=188&type=chunk) - Committed to establishing a competitive and fair compensation and benefits system, and complying with China's statutory social insurance and housing provident fund responsibilities[188](index=188&type=chunk) [Asset Pledges](index=60&type=section&id=Asset%20Pledges) As of June 30, 2025, certain financial leasing receivables, receivables from sale-and-leaseback arrangements, and property and equipment were pledged or mortgaged by the company to secure borrowings Asset Pledges as of June 30, 2025 | Type of Pledged Asset | Book Value (RMB million) | Purpose | | :--- | :--- | :--- | | Financial leasing receivables | 284.3 | To obtain borrowings | | Receivables from sale-and-leaseback arrangements | 35.6 | To obtain borrowings | | Property and equipment | 5,590.8 | To obtain bank borrowings | | Equity of certain subsidiaries | - | To obtain bank borrowings | [Contingent Liabilities](index=60&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[190](index=190&type=chunk) [Events After the Reporting Period](index=60&type=section&id=Events%20After%20the%20Reporting%20Period) Prior to the report's disclosure, Mr. Zhao Jianxiang resigned as Chairman and was detained by supervisory authorities, but the Board believes this matter has no material adverse impact on the Group's financial position, business, or operations - Mr. Zhao Jianxiang resigned from his positions as Executive Director, Chairman, member of the Board's Risk Management Committee, and member and chairman of the Board's Environmental, Social and Governance Committee on August 20, 2025, and was subsequently detained by supervisory authorities[191](index=191&type=chunk) - The Board believes that Mr. Zhao's resignation and the aforementioned matters have no material adverse impact on the Group's current financial position, business, or operations[191](index=191&type=chunk) Other Information [Corporate Governance Practices](index=61&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high standards of corporate governance, has adopted a corporate governance code, complied with all its provisions during the reporting period, and will continue to improve - The company is committed to maintaining high standards of corporate governance and has adopted a corporate governance code as its own corporate governance practice[194](index=194&type=chunk) - During the reporting period, the company has consistently complied with all code provisions contained in the corporate governance code and will continue to improve its corporate governance practices in accordance with business activities and growth needs[195](index=195&type=chunk) [Standard Code for Securities Transactions by Directors and Supervisors](index=61&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The company has adopted a code of conduct no less stringent than the standard set out in Appendix C3 of the Hong Kong Listing Rules, and all directors and supervisors confirmed compliance with this code during the reporting period - The company has adopted a code of conduct for securities transactions by directors and supervisors that is no less stringent than the standard stipulated in Appendix C3 of the Hong Kong Listing Rules, "Model Code for Securities Transactions by Directors of Listed Issuers"[196](index=196&type=chunk) - Following specific inquiries made to all directors and supervisors, the company's directors and supervisors have confirmed compliance with the aforementioned code during the reporting period[196](index=196&type=chunk) [Interim Dividend](index=61&type=section&id=Interim%20Dividend) The Board approved the 2025 interim profit distribution plan, proposing to distribute an interim cash dividend of **RMB 0.42 per 10 shares** (tax inclusive) to all ordinary shareholders, totaling **RMB 345.88 million** - Proposed to distribute an interim cash dividend for the six months ended June 30, 2025, to all ordinary shareholders, based on **8.2353 billion shares**, at **RMB 0.42 per 10 shares** (tax inclusive), with a total dividend payout of **RMB 345.88 million** (tax inclusive)[197](index=197&type=chunk) - H-share shareholders have the right to choose to receive all dividends in RMB; otherwise, their H-share dividends will be paid in HKD[197](index=197&type=chunk) - To determine shareholders' entitlement to the 2025 interim dividend, the company will suspend share transfer registration from September 13, 2025, to September 18, 2025[198](index=198&type=chunk) - Foreign individual H-share shareholders are temporarily exempt from Chinese individual income tax; Chinese resident enterprises distributing dividends to overseas H-share non-resident enterprise shareholders will uniformly withhold and pay enterprise income tax at a **10%** rate[199](index=199&type=chunk) - For Shenzhen-Hong Kong Stock Connect mainland individual investors receiving dividends from H-shares, H-share companies should withhold individual income tax at a **20%** rate; mainland resident enterprises holding H-shares continuously for **12 months** or more are legally exempt from enterprise income tax on dividend income[200](index=200&type=chunk)[203](index=203&type=chunk) [Audit Committee](index=63&type=section&id=Audit%20Committee) The Audit Committee comprises three directors, with Mr. Zeng Qingsheng as Chairman, and has adopted terms of reference consistent with the Corporate Governance Code - The Audit Committee consists of three directors, including two independent non-executive directors, Mr. Zeng Qingsheng and Mr. Yan Lixin, and one non-executive director, Mr. Zhang Shaohua, with Mr. Zeng Qingsheng serving as Chairman[204](index=204&type=chunk) - The Audit Committee has reviewed and approved the Group's interim results and interim report for the six months ended June 30, 2025[204](index=204&type=chunk) [Changes in Information of Directors, Supervisors, and Senior Management](index=63&type=section&id=Changes%20in%20Information%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The report discloses changes in the positions of some non-executive directors and senior management in April and July 2025, as well as the resignation of former Chairman Mr. Zhao Jianxiang in August - In April 2025, the positions of Mr. Zhang Xinjun, Mr. Wu Shukuan, Mr. Zhang Shaohua, and Mr. Wu Xiangyang changed, primarily involving internal position adjustments within Guotai Haitong Securities[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk) - In July 2025, Mr. Yao Jun was appointed as the company's Chief Audit Officer (Assistant General Manager level)[208](index=208&type=chunk) - In August 2025, Mr. Zhao Jianxiang ceased to serve as the company's Executive Director, Chairman, member of the Board's Risk Management Committee, and member and chairman of the Board's Environmental, Social and Governance Committee[208](index=208&type=chunk) [Purchase, Sale, or Redemption of Listed Securities](index=64&type=section&id=Purchase%2C%20Sale%2C%20or%20Redemption%20of%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor did they hold any treasury shares - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[209](index=209&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[209](index=209&type=chunk) [Share Schemes](index=64&type=section&id=Share%20Schemes) As of the date of this interim report, the company has not adopted any share schemes under Chapter 17 of the Listing Rules - As of the date of this interim report, the company has not adopted any share schemes under Chapter 17 of the Listing Rules[210](index=210&type=chunk) [Interests and Short Positions of Directors, Supervisors, and Chief Executive in Shares, Underlying Shares, and Debentures](index=64&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%2C%20Supervisors%2C%20and%20Chief%20Executive%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures) As of June 30, 2025, no director, supervisor, or chief executive of the company held any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations that are required to be disclosed under Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance - As of June 30, 2025, no director, supervisor, or chief executive of the company held any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations that are required to be disclosed to the company and the Hong Kong Stock Exchange under Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance[211](index=211&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares](index=65&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Guotai Haitong Securities, as the indirect controlling shareholder, held a majority interest in the company's H-shares and domestic shares, totaling **85.00%** of the total issued shares Substantial Shareholder Shareholding (As of June 30, 2025) | Shareholder Name | Share Class | Capacity/Nature of Interest | Total Number of Shares Held | % of Total Issued Shares of the Company | | :--- | :--- | :--- | :--- | :--- | | Guotai Haitong Securities | H-shares | Interest in controlled corporation | 4,559,153,176 | 55.36% | | Guotai Haitong Securities | Domestic shares | Interest in controlled corporation | 2,440,846,824 | 29.64% | | Haitong UniTrust Financial | H-shares | Beneficial owner | 4,559,153,176 | 55.36% | | Haitong Innovation Securities Investment Co., Ltd. | Domestic shares | Beneficial owner | 2,440,846,824 | 29.64% | - As of June 30, 2025, the company had no controlling shareholder share pledge matters requiring disclosure under Rule 13.21 of the Hong Kong Listing Rules[215](index=215&type=chunk) [Loan Agreements](index=66&type=section&id=Loan%20Agreements) During the reporting period, the company signed loan agreements with specific banks totaling **RMB 239 million**, which included a clause requiring the Group to ensure that Guotai Haitong Securities maintains its controlling shareholder status in the Group - During the reporting period, the company signed loan agreements with specific banks, of which loans totaling **RMB 239 million** included a clause requiring the Group to ensure that Guotai Haitong Securities maintains its controlling shareholder status in the Group[217](index=217&type=chunk) [Material Legal, Litigation, and Arbitration Matters](index=66&type=section&id=Material%20Legal%2C%20Litigation%2C%20and%20Arbitration%20Matters) During the reporting period, the company had no material outstanding litigation or arbitration cases that would constitute a significant impact on the Group's operations - During the reporting period, there were no material outstanding litigation or arbitration cases that would constitute a significant impact on the Group's operations[218](index=218&type=chunk) [Material Investments Held, Material Acquisitions, Disposals, and Mergers](index=66&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%2C%20Disposals%2C%20and%20Mergers) During the reporting period, neither the company nor its subsidiaries held any material investments, material acquisitions, or disposals - During the reporting period, neither the company nor its subsidiaries held any material investments, material acquisitions, or disposals[219](index=219&type=chunk) [Future Material Investments or Acquisitions of Capital Assets](index=66&type=section&id=Future%20Material%20Investments%20or%20Acquisitions%20of%20Capital%20Assets) As of the date of this report, neither the company nor its subsidiaries have any plans for future material investments or acquisitions of capital assets - Except as disclosed in this report, as of the date of this report, neither the company nor its subsidiaries have any plans for future material investments or acquisitions of capital assets[220](index=220&type=chunk) [Miscellaneous](index=66&type=section&id=Miscellaneous) As of June 30, 2025, the company had no loan matters requiring disclosure under Rule 13.20 of the Hong Kong Listing Rules, nor any matters concerning financial assistance or guarantees to affiliated companies requiring disclosure under Rule 13.22 - As of June 30, 2025, the company had no loan matters requiring disclosure under Rule 13.20 of the Hong Kong Listing Rules[221](index=221&type=chunk) - As of June 30, 2025, the company had no matters concerning financial assistance or guarantees to affiliated companies requiring disclosure under Rule 13.22 of the Hong Kong Listing Rules[222](index=222&type=chunk) Definitions [Definitions of Key Terms](index=67&type=section&id=Definitions%20of%20Key%20Terms) Provides definitions for key terms and abbreviations used in the report, including company names, committee names, share types, regulatory bodies, currency units, and information related to the merger and reorganization of Guotai Haitong Securities - Provides definitions for corporate governance-related terms such as "Audit Committee," "Board of Directors," "Controlling Shareholder," and "Corporate Governance Code"[223](index=223&type=chunk) - Explains share and currency types such as "Domestic Shares," "H-shares," "RMB," "HKD," and "USD"[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk) - Describes the background of Guotai Haitong Securities' merger and reorganization and its status as the company's indirect controlling shareholder[223](index=223&type=chunk) Technical Glossary [Definitions of Technical Terms](index=70&type=section&id=Definitions%20of%20Technical%20Terms) Provides definitions for technical terms used in the report, including "14th Five-Year Plan," "AI+," "Dual Carbon," "Five Key Initiatives," "LPR," "Made in China 2025," "Specialized, Refined, Unique, and New," "Non-Performing Assets," and "Two Heavies and Two News" - Defines macroeconomic policy and technical terms such as "14th Five-Year Plan," "AI+," "Data Center," and "Dual Carbon"[226](index=226&type=chunk) - Explains the connotations of the "Five Key Initiatives" (Technology Finance, Green Finance, Inclusive Finance, Elderly Care Finance, and Digital Finance)[226](index=226&type=chunk) - Clarifies economic and industry-related terms such as "LPR," "Made in China 2025," "Specialized, Refined, Unique, and New," "Non-Performing Assets," and "Two Heavies and Two News"[226](index=226&type=chunk)[228](index=228&type=chunk) Review Report on Interim Condensed Consolidated Financial Statements [Review Conclusion](index=72&type=section&id=Review%20Conclusion) Deloitte Touche Tohmatsu reviewed Haitong UniTrust's interim condensed consolidated financial statements for the six months ended June 30, 2025, concluding that the financial statements were prepared in all material respects in accordance with International Accounting Standard 34, with no material matters identified - Deloitte Touche Tohmatsu has reviewed the interim condensed consolidated financial statements of Haitong UniTrust and its subsidiaries for the six months ended June 30, 2025[229](index=229&type=chunk) - The scope of the review is substantially less than that of an audit conducted in accordance with International Standards on Auditing, and therefore no audit opinion is expressed[230](index=230&type=chunk) - Based on the review, nothing has come to the reviewer's attention that causes them to believe the interim condensed consolidated financial statements are not prepared in all material respects in accordance with International Accounting Standard 34[231](index=231&type=chunk)

二零二五年中期報告 邁向AI+新時代 中國移動有限公司 股份代號：941(港幣櫃台)及 80941(人民幣櫃台) 中國移動有限公司 二零二五年中期報告 目錄 | 02 | 財務撮要 | | --- | --- | | 03 | 公司簡介 | | 04 | 董事長報告書 | | 14 | 中期財務資料 | | 14 | 未經審核簡明合併綜合收益表 | For Layout Only 16 未經審核簡明合併資產負債表 18 未經審核簡明合併權益變動表 20 未經審核簡明合併現金流量表 23 未經審核簡明合併中期財務資料附註 43 中期財務資料的審閱報告 45 對中期業績若干事項的討論 47 其他資料 | 1 | 0 | 1 | | | --- | --- | --- | --- | | 1 | 0 | 1 | 0 | 營運收入 （人民幣百萬元） 股東應佔利潤 （人民幣百萬元） 2025年上半年 / 543,769 2024年上半年 / 546,744 2025年上半年 / 466,989 通信服務收入 （人民幣百萬元） 中期每股股息 （港元） 2025年上半年 / 2.75 2024年上半年 / 2.60 截至6 ...

（股份代號：1800） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 中國交通建設股份有限公司 CHINA COMMUNICATIONS CONSTRUCTION COMPANY LIMITED （於中華人民共和國註冊成立的股份有限公司） 截 至2025年6月30日止六個月之 中期業績公告 財務概要 註 截 至2025年6月30日 止 六 個 月，本 集 團 收 入 為3,354.50億 元，較2024年同期的 3,560.10億元減少205.60億元或5.8%。 截 至2025年6月30日止六個月的毛利為357.65億元，較2024年同期的415.96億 元 減 少58.31億元或14.0%。 截 至2025年6月30日 止 六 個 月，營 業 利 潤 為172.08億 元，較2024年同期的205.27 億元減少33.19億元或16.2%。 截 至2025年6月30日止六個月的母公司所有者應佔利潤為99.90億元，較2024年 同期的120.2 ...

[Company Information](index=2&type=section&id=Company%20Information) This section provides essential company details, including board members, key contacts, listing information, and primary business activities - Executive Directors include **Mr. Xu Qingliu** (Chairman), **Mr. Huang Weiliang** (CFO), and **Mr. Wu Wenxu** (CEO)[4](index=4&type=chunk) - The Company's shares are listed on The Stock Exchange of Hong Kong Limited, stock code **1583**[4](index=4&type=chunk) - The Group primarily engages in the manufacturing, distribution, and sale of food and snack products in the People's Republic of China[24](index=24&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) This section summarizes the Group's unaudited key financial performance and ratios for the six months ended June 30, 2025, showing declines in revenue, gross profit, and profit attributable to shareholders, alongside changes in assets and equity Key Financial Performance and Ratios (Unaudited, RMB thousands) | For the six months ended June 30 | 2025 | 2024 | Change | | :------------------------------- | :------- | :------- | :------- | | Revenue | 529,747 | 563,585 | -6.0% | | Gross Profit | 154,203 | 171,722 | -10.2% | | Gross Profit Margin | 29.1% | 30.5% | -1.4 percentage points | | Profit attributable to equity holders of the Company | 21,551 | 32,809 | -34.3% | | Adjusted EBITDA | 70,209 | 78,790 | -10.9% | | Basic earnings per share | RMB0.029 | RMB0.043 | | | Diluted earnings per share | RMB0.029 | RMB0.043 | | | **As at June 30** | **2025** | **2024** | **Change** | | Total Assets | 1,683,404 | 1,943,865 | -13.4% | | Net Cash Position | 277,100 | 415,079 | -33.2% | | Net Current Assets | 235,377 | 182,113 | 29.2% | | Total equity attributable to equity holders of the Company | 1,231,539 | 1,219,861 | 1.0% | | Return on equity (annualized) | 3.5% | 1.7% | 1.8 percentage points | | Net asset value per share | RMB1.6 | RMB1.6 | | [Interim Condensed Consolidated Financial Information](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Information) This chapter presents the unaudited interim condensed consolidated financial information for Kinmen Food Group for the six months ended June 30, 2025, including statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows, along with explanatory notes, all reviewed by the audit committee and auditors [Review Report on Interim Condensed Consolidated Financial Information](index=5&type=section&id=Review%20Report%20on%20Interim%20Condensed%20Financial%20Information) Tianzhu Hong Kong Certified Public Accountants Limited reviewed the interim condensed consolidated financial information for the six months ended June 30, 2025, concluding no material non-compliance with HKAS 34 - The auditor is **Tianzhu Hong Kong Certified Public Accountants Limited**[14](index=14&type=chunk) - The scope of review is significantly less than an audit, thus no audit opinion was expressed[12](index=12&type=chunk) - The review concluded that nothing has come to the auditor's attention that causes them to believe the interim condensed consolidated financial information is not prepared, in all material respects, in accordance with HKAS 34[13](index=13&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the Group's revenue, cost of sales, gross profit, expenses, and profit for the six months ended June 30, 2025, indicating a decline in both revenue and period profit compared to the prior year Interim Condensed Consolidated Statement of Profit or Loss (Unaudited, RMB thousands) | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Revenue | 529,747 | 563,585 | | Cost of sales | (375,544) | (391,863) | | Gross Profit | 154,203 | 171,722 | | Distribution and selling expenses | (64,347) | (67,408) | | Administrative expenses | (66,477) | (68,729) | | Other income and gains/(losses) — net | 6,073 | (109) | | Operating profit | 29,452 | 35,476 | | Finance income | 3,913 | 6,315 | | Finance costs | (4,039) | (4,609) | | Share of net loss of associates | (86) | (213) | | Profit before income tax | 29,240 | 36,969 | | Income tax expense | (7,689) | (4,160) | | Profit for the period | 21,551 | 32,809 | | Basic earnings per share | RMB0.029 | RMB0.043 | | Diluted earnings per share | RMB0.029 | RMB0.043 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement outlines the Group's profit for the period and other comprehensive income/(loss) for the six months ended June 30, 2025, primarily including property revaluation gains, leading to total comprehensive income for the period Interim Condensed Consolidated Statement of Comprehensive Income (Unaudited, RMB thousands) | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Profit for the period | 21,551 | 32,809 | | Other comprehensive income/(loss) for the period (after tax): | | | | Fair value loss on financial assets measured at fair value through other comprehensive income | — | (1,265) | | Revaluation surplus on properties | 5,229 | 1,044 | | Other comprehensive income/(loss) for the period | 5,229 | (221) | | Total comprehensive income for the period | 26,780 | 32,588 | [Interim Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement details the Group's assets, equity, and liabilities as of June 30, 2025, showing a decrease in total assets, a slight increase in total equity, and a significant reduction in current liabilities compared to December 31, 2024 Interim Condensed Consolidated Statement of Financial Position (Unaudited, RMB thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | **ASSETS** | | | | Non-current assets | 1,119,694 | 1,190,336 | | Current assets | 563,710 | 753,529 | | **TOTAL ASSETS** | **1,683,404** | **1,943,865** | | **EQUITY** | | | | Total equity | 1,231,539 | 1,219,861 | | **LIABILITIES** | | | | Non-current liabilities | 123,532 | 152,588 | | Current liabilities | 328,333 | 571,416 | | **TOTAL LIABILITIES** | **451,865** | **724,004** | | **TOTAL EQUITY AND LIABILITIES** | **1,683,404** | **1,943,865** | [Interim Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement illustrates the Group's equity changes for the six months ended June 30, 2025, encompassing opening balances, profit for the period, other comprehensive income (e.g., property revaluation gains), and shareholder transactions like dividend distributions and statutory reserve transfers Interim Condensed Consolidated Statement of Changes in Equity (Unaudited, RMB thousands) | Metric | Share capital | Other reserves | Retained earnings | Total equity | | :--- | :--- | :--- | :--- | :--- | | At January 1, 2025 | 6,433 | 699,907 | 513,521 | 1,219,861 | | Profit for the period | — | — | 21,551 | 21,551 | | Revaluation surplus on properties (after tax) | — | 5,229 | — | 5,229 | | Dividends recognised as distribution | — | — | (15,102) | (15,102) | | Transfer to statutory reserve | — | 4,738 | (4,738) | — | | At June 30, 2025 | 6,433 | 709,874 | 515,232 | 1,231,539 | [Interim Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, showing net cash outflow from operations, net cash inflow from investing, and net cash outflow from financing, resulting in a net decrease in cash and cash equivalents Interim Condensed Consolidated Statement of Cash Flows (Unaudited, RMB thousands) | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Net cash (used in)/generated from operating activities | (107,002) | 42,404 | | Net cash generated from/(used in) investing activities | 74,447 | (80,359) | | Net cash used in financing activities | (37,468) | (20,432) | | Net decrease in cash and cash equivalents | (70,023) | (58,387) | | Cash and cash equivalents at end of period | 384,671 | 413,262 | [Notes to the Interim Condensed Consolidated Financial Information](index=12&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering general information, basis of preparation, accounting policies, specific explanations for assets, liabilities, equity, and cash flows, as well as financial risk management, segment information, and related party transactions [1. General Information](index=13&type=section&id=1.%20General%20Information) This note introduces Kinmen Food Group (Cayman) Company Limited's basic information, including its registration, principal place of business, listing status, and primary operations in China - The Company was incorporated in the Cayman Islands as an exempted company with limited liability on **January 14, 2016**[24](index=24&type=chunk) - The Group primarily engages in the manufacturing, distribution, and sale of food and snack products in China[24](index=24&type=chunk) - The Company's shares have been listed on The Stock Exchange of Hong Kong Limited since **July 8, 2016**[25](index=25&type=chunk) [2. Basis of Preparation](index=13&type=section&id=2.%20Basis%20of%20Preparation) This note explains that the interim condensed consolidated financial information is prepared in accordance with HKAS 34 'Interim Financial Reporting' and the disclosure requirements of the HKEX Listing Rules - The interim condensed consolidated financial information has been prepared in accordance with **HKAS 34** "Interim Financial Reporting"[27](index=27&type=chunk) - It should be read in conjunction with the annual financial statements for the year ended **December 31, 2024**[27](index=27&type=chunk) [3. Significant Accounting Policies](index=13&type=section&id=3.%20Significant%20Accounting%20Policies) This note outlines the significant accounting policies used for the interim condensed consolidated financial information, primarily based on historical cost, with fair value measurement for investment properties and specific financial assets; new standards adopted had no material impact - The interim condensed consolidated financial information is prepared on the historical cost basis, except for investment properties and certain financial assets measured at fair value[28](index=28&type=chunk) - The Group first adopted **HKAS 21 (Amendment)** "Lack of Exchangeability" on **January 1, 2025**[29](index=29&type=chunk) - The adoption of the amended standards had no material impact on the Group's financial position and performance for the current and prior interim periods[29](index=29&type=chunk) [4. Critical Accounting Estimates and Judgements](index=14&type=section&id=4.%20Critical%20Accounting%20Estimates%20and%20Judgements) This note describes the critical accounting estimates and judgments made by management in preparing the interim condensed consolidated financial information, consistent with those used for the annual financial statements for the year ended December 31, 2024 - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those used in the consolidated financial statements for the year ended **December 31, 2024**[30](index=30&type=chunk) [5. Financial Risk Management](index=14&type=section&id=5.%20Financial%20Risk%20Management) This note details the Group's financial risks, including market (foreign exchange, interest rate), credit, and liquidity risks, providing maturity analysis for liquidity risk and fair value estimates for financial instruments; risk management policies remained unchanged since late 2024 [5.1 Financial Risk Factors](index=14&type=section&id=5.1%20Financial%20Risk%20Factors) This note outlines the Group's exposure to market (foreign exchange, interest rate), credit, and liquidity risks, confirming no changes in risk management policies since late 2024 - The Group's operating activities expose it to various financial risks: market risk (including foreign exchange risk, cash flow interest rate risk, and fair value interest rate risk), credit risk, and liquidity risk[31](index=31&type=chunk) - The Group's risk management policies have not changed since the end of **2024**[32](index=32&type=chunk) [5.2 Liquidity Risk](index=15&type=section&id=5.2%20Liquidity%20Risk) This note analyzes the Group's liquidity risk for non-derivative financial liabilities, categorized by contractual maturity dates, presenting total undiscounted cash flows and carrying amounts Non-derivative Financial Liabilities Liquidity Risk Analysis (Unaudited, RMB thousands, June 30, 2025) | Metric | Weighted average interest rate | Less than 1 year | 1 to 2 years | 2 to 5 years | More than 5 years | Total undiscounted cash flows | Carrying amount | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trade and bills payables | | 155,925 | — | — | — | 155,925 | 155,925 | | Other payables (excluding non-financial liabilities) | | 38,159 | — | — | — | 38,159 | 38,159 | | Borrowings | 2.43% | 32,970 | 34,882 | 91,290 | — | 159,142 | 150,101 | | **Total** | | **227,054** | **34,882** | **91,290** | **—** | **353,226** | **344,185** | [5.3 Fair Value Estimation of Financial Instruments](index=16&type=section&id=5.3%20Fair%20Value%20Estimation%20of%20Financial%20Instruments) This note analyzes the Group's financial instruments measured at fair value, primarily Level 3 financial assets (including unlisted equity investments), detailing valuation methods and sensitivity analysis, with no transfers between fair value hierarchy levels during the period Financial Assets Measured at Fair Value (Unaudited, RMB thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Financial assets measured at fair value through profit or loss — Level 3 | 2,000 | 2,000 | | Financial assets measured at fair value through other comprehensive income — Level 3 | 18,867 | 18,867 | | **Total** | **20,867** | **20,867** | - Level 3 financial assets primarily use valuation techniques with unobservable inputs, developed by external valuers or internally and reviewed by management[36](index=36&type=chunk) - There were no transfers between fair value hierarchy levels for financial instruments for the six months ended **June 30, 2025**[36](index=36&type=chunk) [5.4 Fair Value of Financial Assets and Liabilities Measured at Amortized Cost](index=18&type=section&id=5.4%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Amortized%20Cost) This note states that the fair values of financial assets and liabilities measured at amortized cost, including trade and other receivables, cash and bank balances, trade and other payables, and borrowings, approximate their carrying amounts at the reporting date - At the reporting date, the fair values of trade receivables, other receivables and deposits, cash and bank balances, trade and bills payables, other payables, and borrowings approximated their carrying amounts[41](index=41&type=chunk)[43](index=43&type=chunk) [6. Revenue and Segment Information](index=18&type=section&id=6.%20Revenue%20and%20Segment%20Information) This note discloses the Group's revenue and performance across its four reportable operating segments (jelly, puffed food, seasoning, candy, and other products), providing sales revenue, cost of sales, and gross profit data for each segment - The Group has four reportable operating segments: jelly products, puffed food products, seasoning products, and candy and other products[43](index=43&type=chunk) Segment Revenue and Results (Unaudited, RMB thousands, For the six months ended June 30, 2025) | Segment | Revenue | Cost of sales | Segment results (Gross profit) | | :--- | :--- | :--- | :--- | | Jelly products | 316,372 | (224,150) | 92,222 | | Puffed food products | 149,028 | (105,726) | 43,302 | | Seasoning products | 34,165 | (21,711) | 12,454 | | Candy and other products | 30,182 | (23,957) | 6,225 | | **Group total** | **529,747** | **(375,544)** | **154,203** | Segment Revenue and Results (Unaudited, RMB thousands, For the six months ended June 30, 2024) | Segment | Revenue | Cost of sales | Segment results (Gross profit) | | :--- | :--- | :--- | :--- | | Jelly products | 338,625 | (232,339) | 106,286 | | Puffed food products | 153,500 | (108,958) | 44,542 | | Seasoning products | 41,503 | (26,717) | 14,786 | | Candy and other products | 29,957 | (23,849) | 6,108 | | **Group total** | **563,585** | **(391,863)** | **171,722** | [7. Expenses by Nature](index=21&type=section&id=7.%20Expenses%20by%20Nature) This note categorizes the Group's expenses by nature, including raw materials, employee benefits, utilities, transportation, depreciation, and marketing costs, which collectively form cost of sales, distribution and selling expenses, and administrative expenses Expenses by Nature (Unaudited, RMB thousands) | Expense category | 2025 | 2024 | | :--- | :------- | :------- | | Raw materials and consumables used | 240,814 | 253,653 | | Changes in inventories of work-in-progress and finished goods | 23,043 | 26,177 | | Staff welfare expenses | 99,102 | 97,551 | | Utilities and office expenses | 44,489 | 40,316 | | Transportation and packaging expenses | 29,458 | 30,094 | | Depreciation of property, plant and equipment | 40,250 | 42,663 | | Marketing and promotion costs | 5,610 | 3,205 | | **Total** | **506,368** | **528,000** | [8. Other Income and Gains/(Losses) — Net](index=21&type=section&id=8.%20Other%20Income%20and%20Gains%2F(Losses)%20%E2%80%94%20Net) This note presents the Group's net other income and gains/(losses) for the six months ended June 30, 2025, primarily comprising government grants, gains on disposal of property, plant and equipment, and impairment loss on construction in progress, showing a significant improvement from a prior-year loss to a net gain Other Income and Gains/(Losses) — Net (Unaudited, RMB thousands) | Item | 2025 | 2024 | | :--- | :------- | :------- | | Government grants | 2,416 | 333 | | Gain/(loss) on disposal of property, plant and equipment — net | 5,530 | (6,134) | | Gain on early termination of lease contracts | — | 3,061 | | Impairment loss on construction in progress | (5,357) | — | | Operating lease income | 2,579 | 2,250 | | **Total** | **6,073** | **(109)** | - The period saw a gain of **RMB5,530 thousands** from the disposal of property, plant and equipment, compared to a loss of **RMB6,134 thousands** in the prior period[47](index=47&type=chunk) - An impairment loss of **RMB5,357 thousands** on construction in progress was recorded this period[47](index=47&type=chunk) [9. Finance Income and Finance Costs](index=22&type=section&id=9.%20Finance%20Income%20and%20Finance%20Costs) This note details the Group's finance income and costs for the six months ended June 30, 2025, with finance income mainly from bank deposits and finance costs primarily from borrowing interest and foreign exchange losses, resulting in net finance costs for the period Finance Income and Finance Costs (Unaudited, RMB thousands) | Item | 2025 | 2024 | | :--- | :------- | :------- | | Finance income: Interest income from bank deposits | 3,913 | 6,315 | | Finance costs: Interest expense on borrowings | (2,698) | (3,896) | | Foreign exchange losses | (813) | (18) | | Other finance costs | (528) | (544) | | **Net finance (costs)/income** | **(126)** | **1,706** | - Net finance costs for the period amounted to a loss of **RMB126 thousands**, compared to a gain of **RMB1,706 thousands** in the prior period[48](index=48&type=chunk) [10. Income Tax Expense](index=22&type=section&id=10.%20Income%20Tax%20Expense) This note discloses the Group's income tax expense for the six months ended June 30, 2025, including current and deferred tax, noting a 25% statutory income tax rate for PRC subsidiaries and no deferred tax liability recognized for unremitted profits Income Tax Expense (Unaudited, RMB thousands) | Item | 2025 | 2024 | | :--- | :------- | :------- | | Current income tax — PRC enterprise income tax | 4,782 | 3,418 | | Net deferred income tax | 2,907 | 742 | | **Income tax expense** | **7,689** | **4,160** | - The statutory income tax rate for the Company and its PRC subsidiaries was **25%** for both periods[50](index=50&type=chunk) - As of **June 30, 2025**, no deferred income tax liability was recognized for withholding tax payable on unremitted profits of PRC subsidiaries, amounting to approximately **RMB2,042 thousands**[52](index=52&type=chunk) [11. Earnings Per Share](index=23&type=section&id=11.%20Earnings%20Per%20Share) This note provides the Group's basic and diluted earnings per share for the six months ended June 30, 2025, with diluted EPS being the same as basic EPS due to share options' exercise price exceeding the average market price, thus having no dilutive effect [11.1 Basic](index=23&type=section&id=11.1%20Basic) This note calculates basic earnings per share for the six months ended June 30, 2025, by dividing profit attributable to equity holders by the weighted average number of ordinary shares outstanding Basic Earnings Per Share (Unaudited, RMB) | Item | 2025 | 2024 | | :--- | :------- | :------- | | Profit attributable to equity holders of the Company (RMB thousands) | 21,551 | 32,809 | | Weighted average number of ordinary shares for basic earnings per share | 755,096,557 | 755,096,557 | | **Basic earnings per share** | **RMB0.029** | **RMB0.043** | [11.2 Diluted](index=23&type=section&id=11.2%20Diluted) This note explains that diluted earnings per share for the six months ended June 30, 2025, is identical to basic earnings per share because the exercise price of share options exceeded the average market price, resulting in no dilutive impact - Diluted earnings per share for the periods ended **June 30, 2025**, and **June 30, 2024**, were the same as basic earnings per share[55](index=55&type=chunk) - This is because the exercise price of the Company's share options was higher than the average market price of the Company's shares during the period, resulting in no dilutive effect on ordinary shares[55](index=55&type=chunk) [12. Dividends](index=23&type=section&id=12.%20Dividends) This note discloses that the Group paid the 2024 final dividend in June 2025, but the Board decided not to declare an interim dividend for the six months ended June 30, 2025 - The **2024** final dividend of **RMB0.02** per share (totaling **RMB15,102 thousands**) was fully paid in **June 2025**[56](index=56&type=chunk) - The Board decided not to declare an interim dividend for the six months ended **June 30, 2025**[56](index=56&type=chunk) [13. Property, Plant and Equipment, Investment Properties, Construction in Progress and Intangible Assets](index=24&type=section&id=13.%20Property%2C%20Plant%20and%20Equipment%2C%20Investment%20Properties%2C%20Construction%20in%20Progress%20and%20Intangible%20Assets) This note details changes in the Group's property, plant and equipment, investment properties, construction in progress, and intangible assets during the reporting period, including additions, transfers, disposals, impairment losses, revaluation surpluses, and depreciation/amortization, with revaluation gains recognized from property reclassification to investment properties Property, Plant and Equipment and Other Asset Movements (Unaudited, RMB thousands, For the six months ended June 30, 2025) | Item | Property, plant and equipment | Investment properties | Construction in progress | Intangible assets | | :--- | :--- | :--- | :--- | :--- | | At January 1, 2025 | 1,011,799 | 34,232 | 15,407 | 1,417 | | Additions | 7,067 | — | 10,370 | — | | Transfers | (43,256) | 44,205 | (949) | — | | Disposals | (29,383) | — | — | — | | Impairment loss | — | — | (5,357) | — | | Revaluation surplus | — | 6,973 | — | — | | Depreciation/amortisation for the period | (40,250) | — | — | (167) | | **At June 30, 2025** | **905,977** | **87,106** | **19,471** | **1,250** | - The Group changed the use of certain property, plant and equipment and land use rights, leasing them to independent third parties to earn rental income, recognizing a revaluation surplus of approximately **RMB6,973 thousands**[59](index=59&type=chunk) - As of **June 30, 2025**, land use rights and buildings with a net book value of **RMB361,377 thousands** were pledged as collateral for borrowings of **RMB150,101 thousands**[59](index=59&type=chunk) [14. Leases](index=25&type=section&id=14.%20Leases) This note discloses the carrying amount of the Group's right-of-use assets (land use rights), mentions ongoing title processing for some land use rights, and reports gains from early lease terminations and total lease cash outflows Right-of-Use Assets (Unaudited, RMB thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Land use rights | 51,443 | 70,465 | - As of **June 30, 2025**, land use rights amounting to approximately **RMB5,818 thousands** were still in the process of obtaining property ownership certificates[60](index=60&type=chunk) - For the six months ended **June 30, 2024**, the Group recognized a gain of **RMB3,061 thousands** from early termination of lease contracts[60](index=60&type=chunk) [15. Trade Receivables](index=25&type=section&id=15.%20Trade%20Receivables) This note provides an aging analysis of the Group's trade receivables, showing most are within 30 days, with credit terms of 30 to 90 days and no significant concentration of credit risk due to a diverse customer base Trade Receivables Aging Analysis (Unaudited, RMB thousands) | Aging | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Within 30 days | 11,249 | 13,384 | | 31-180 days | 3,083 | 1,613 | | 181-365 days | 20 | 40 | | Over 365 days | 40 | — | | **Total** | **14,392** | **15,037** | - The Group grants credit terms of **30 to 90 days** for trade receivables to its customers[61](index=61&type=chunk) - Due to a large number of customers, the Group has no significant concentration of credit risk in trade receivables[61](index=61&type=chunk) [16. Cash and Bank Balances](index=26&type=section&id=16.%20Cash%20and%20Bank%20Balances) This note details the Group's cash and bank balances, comprising cash and cash equivalents, restricted bank deposits, and time deposits, with restricted deposits primarily pledged for trade finance facilities Cash and Bank Balances (Unaudited, RMB thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Cash and cash equivalents | 384,671 | 455,507 | | Restricted bank deposits — current | 19,494 | 43,171 | | Time deposits — current | 23,036 | 88,868 | | **Total** | **427,201** | **587,546** | - Restricted bank deposits are pledged with banks by the Group to obtain trade finance facilities[63](index=63&type=chunk) [17. Share Capital](index=26&type=section&id=17.%20Share%20Capital) This note discloses the Group's share capital information, indicating that the number of issued shares and share capital amount remained unchanged as of June 30, 2025, compared to the beginning of the period Share Capital (Unaudited, RMB thousands) | Item | Number of shares 2025 | RMB thousands 2025 | | :--- | :--------------- | :--------------- | | At January 1 and June 30 | 755,096,557 | 6,433 | [18. Share Option Scheme](index=26&type=section&id=18.%20Share%20Option%20Scheme) This note details the Company's 2017 share option scheme, including grants, cancellations/lapses, and exercisable options as of June 30, 2025, with their exercise prices and validity periods, noting no equity-settled share-based payment expense recognized this period - The Company adopted a share option scheme on **May 16, 2017**[66](index=66&type=chunk) Movement in Number of Share Options (Unaudited) | Item | Balance at January 1, 2025 | Cancelled/lapsed during the period | Balance at June 30, 2025 | | :--- | :--------------- | :--------------- | :--------------- | | Share options granted (exercise price HKD2.19 per share) | 2,884,000 | (136,000) | 2,748,000 | - The amount recognized as equity-settled share-based payment expense for the six months ended **June 30, 2025**, was **nil**[67](index=67&type=chunk) [19. Trade and Bills Payables](index=28&type=section&id=19.%20Trade%20and%20Bills%20Payables) This note provides an aging analysis of the Group's trade and bills payables, showing most are within 180 days as of June 30, 2025, with a significant decrease in total amount compared to December 31, 2024 Trade and Bills Payables Aging Analysis (Unaudited, RMB thousands) | Aging | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Within 30 days | 54,804 | 82,890 | | 31 to 180 days | 100,988 | 232,686 | | 181 to 365 days | 16 | 194 | | Over 365 days | 117 | 378 | | **Total** | **155,925** | **316,148** | [20. Borrowings](index=29&type=section&id=20.%20Borrowings) This note discloses the Group's current and non-current borrowings, primarily secured bank loans, showing a decrease in total borrowings and a lower weighted average effective annual interest rate as of June 30, 2025 Borrowings (Unaudited, RMB thousands) | Category | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Current: Bank loans — secured | 29,483 | 27,733 | | Non-current: Bank loans — secured | 120,618 | 136,234 | | **Total borrowings** | **150,101** | **172,467** | - Secured borrowings are collateralized by the Group's land use rights and buildings[72](index=72&type=chunk) - For the six months ended **June 30, 2025**, the weighted average effective annual interest rate for borrowings was **2.43%** (year ended December 31, 2024: **2.71%**)[72](index=72&type=chunk) [21. Commitments](index=29&type=section&id=21.%20Commitments) This note details the Group's capital and other commitments, including contracted but unprovided capital expenditures and minimum lease payments for irrevocable short-term property leases, also disclosing future undiscounted lease payments receivable as a lessor [21. (a) Capital Commitments](index=29&type=section&id=21.%20%28a%29%20Capital%20Commitments) This note discloses the Group's significant capital expenditures contracted but not yet recognized as liabilities as of June 30, 2025, primarily for machinery and equipment and buildings Capital Commitments (Unaudited, RMB thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Contracted but not provided for: Machinery and equipment | 9,158 | 8,122 | | Contracted but not provided for: Buildings | 11,664 | 18,034 | | **Total** | **20,822** | **26,156** | [21. (b) Other Commitments](index=30&type=section&id=21.%20%28b%29%20Other%20Commitments) This note discloses the Group's minimum lease payments due in the future under irrevocable short-term property leases and other irrevocable contracts as of June 30, 2025 Other Commitments (Unaudited, RMB thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Within 1 year | 219 | 2,085 | [21. (c) The Group as Lessor](index=30&type=section&id=21.%20%28c%29%20The%20Group%20as%20Lessor) This note explains that the Group leases out several buildings and warehouses under operating leases, typically with initial terms of 2 to 10 years, and presents future undiscounted lease payments receivable - The Group leases out several buildings and warehouses under operating leases, with initial lease terms typically ranging from **2 to 10 years**[75](index=75&type=chunk) Undiscounted Lease Payments Receivable (Unaudited, RMB thousands) | Period | 2025年6月30日 | 2024年12月31日 | | :--- | :--------------- | :--------------- | | Within one year | 6,587 | 5,129 | | In the second year | 6,575 | 4,830 | | In the third to fifth years inclusive | 9,765 | 7,245 | | In the sixth to tenth years inclusive | 2,763 | — | | **Total** | **25,690** | **17,204** | [22. Related Party Transactions](index=30&type=section&id=22.%20Related%20Party%20Transactions) This note discloses the Group's significant related party transactions, including office leases and goods purchases, as well as compensation for key management personnel [22. (a) Transactions with Related Parties](index=31&type=section&id=22.%20%28a%29%20Transactions%20with%20Related%20Parties) This note lists the transaction amounts between the Group and related parties, Lianjie Sports Investment Co., Ltd. (office rental) and Fujian Shuncheng Flour Industry Development Co., Ltd. (purchase of goods) Transactions with Related Parties (Unaudited, RMB thousands) | Related party | Type of transaction | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Lianjie Sports Investment Co., Ltd. | Office rental | 221 | 218 | | Fujian Shuncheng Flour Industry Development Co., Ltd. | Purchase of goods | 288 | 69 | - Lianjie Sports is wholly owned by **Mr. Xu Qingliu**, one of the Company's directors[80](index=80&type=chunk) - Shuncheng Flour Industry is controlled by a former director and a current director of the Company and their associates[82](index=82&type=chunk) [22. (b) Key Management Personnel Compensation](index=31&type=section&id=22.%20%28b%29%20Key%20Management%20Personnel%20Compensation) This note discloses the total remuneration for key management personnel, including directors and certain senior management, for the six months ended June 30, 2025 - Key management personnel compensation for the six months ended **June 30, 2025**, was approximately **RMB2,197 thousands** (2024: **RMB2,067 thousands**)[83](index=83&type=chunk) [Management Discussion and Analysis](index=32&type=section&id=Management%20Discussion%20and%20Analysis) This chapter discusses Kinmen Food Group's operating results, industry environment, product segment performance, cost control, strategic development, product innovation, marketing, channel expansion, production facility optimization, future outlook, and financial position for the six months ended June 30, 2025, highlighting challenges from intense market competition and declining revenue, alongside proactive strategic adjustments [Industry Environment](index=32&type=section&id=Industry%20Environment) In the first half of 2025, China's food and snack market faced intense competition, with emerging snack chains impacting traditional channels; rising consumer price sensitivity increased demand for high-quality, nutritious, and cost-effective products, necessitating continuous innovation and adaptability from the Group - China's food and snack market faces intense competition, with the growth of emerging snack chains stabilizing[86](index=86&type=chunk) - The Group faces challenges from price pressure, demand for product innovation, and the need to enhance brand recognition[86](index=86&type=chunk) - Consumer purchasing behavior is shifting towards value for money, emphasizing taste, nutrition, enjoyment, and functional value[86](index=86&type=chunk) [Business Review](index=32&type=section&id=Business%20Review) During the reporting period, the Group's cumulative sales revenue decreased by **6.0%** year-on-year to **RMB529.7 millions**, with gross profit and gross profit margin also declining by **10.2%** and **1.4 percentage points**, respectively; profit attributable to equity holders decreased by approximately **RMB11.2 millions**, primarily due to reduced traditional sales channels, partially offset by growth in snack chain, OEM, and export businesses [Jelly Products](index=33&type=section&id=Jelly%20Products) Jelly product sales decreased by **6.6%** year-on-year to **RMB316.4 millions**, with gross profit down **13.3%** and gross profit margin falling **2.3 percentage points** to **29.1%**, mainly due to reduced traditional sales channels and competitors' lower-priced offerings - Jelly product sales amounted to approximately **RMB316.4 millions**, a year-on-year decrease of approximately **6.6%**[89](index=89&type=chunk) - Gross profit was approximately **RMB92.2 millions**, a year-on-year decrease of approximately **13.3%**; gross profit margin was **29.1%**, a year-on-year decrease of approximately **2.3 percentage points**[89](index=89&type=chunk) - The sales decline was primarily due to reduced traditional sales channels and competitors introducing lower-priced products[89](index=89&type=chunk) [Puffed Food Products](index=34&type=section&id=Puffed%20Food%20Products) Puffed food product sales slightly decreased by **2.9%** year-on-year to **RMB149.0 millions**, while gross profit margin slightly increased by **0.1 percentage points** to **29.1%**; the sales decline was primarily due to weak performance in traditional channels, partially offset by increased sales to snack chains, exports, and OEM businesses - Puffed food product sales amounted to approximately **RMB149.0 millions**, a year-on-year decrease of approximately **2.9%**[92](index=92&type=chunk) - Gross profit margin was **29.1%**, a year-on-year increase of approximately **0.1 percentage points**[92](index=92&type=chunk) - The slight sales decline was mainly due to weak performance in traditional channels, but sales to snack chains, exports, and OEM businesses increased[92](index=92&type=chunk) [Seasoning Products](index=34&type=section&id=Seasoning%20Products) Seasoning product sales decreased by **17.6%** year-on-year to **RMB34.2 millions**, but gross profit margin rose by **0.9 percentage points** to **36.5%**; the sales decline resulted from the Group's strategic adjustment to focus on core and profitable products, along with price, customer, and channel adjustments - Seasoning product sales amounted to approximately **RMB34.2 millions**, a year-on-year decrease of approximately **17.6%**[93](index=93&type=chunk) - Gross profit margin was **36.5%**, a year-on-year increase of approximately **0.9 percentage points**[93](index=93&type=chunk) - The sales decline was primarily due to the Group's strategic adjustment to focus on core and profitable products, while also reducing the number of product categories[93](index=93&type=chunk) [Candy and Other Products](index=35&type=section&id=Candy%20and%20Other%20Products) Candy and other product sales increased by **0.7%** year-on-year to **RMB30.2 millions**, with gross profit margin rising by **0.2 percentage points** to **20.6%**; the sales growth was mainly driven by increased sales of new rice wine products and improved production costs from economies of scale - Candy and other product sales amounted to approximately **RMB30.2 millions**, a year-on-year increase of approximately **0.7%**[94](index=94&type=chunk) - Gross profit margin was **20.6%**, a year-on-year increase of approximately **0.2 percentage points**[94](index=94&type=chunk) - The increase in sales was mainly due to increased sales of new rice wine products, and gross profit margin also improved with increased sales volume and economies of scale[94](index=94&type=chunk) [Distribution and Selling Expenses](index=35&type=section&id=Distribution%20and%20Selling%20Expenses) Distribution and selling expenses decreased by **4.6%** year-on-year to **RMB64.3 millions**, primarily due to reduced employee bonuses and transportation costs, consistent with the decline in sales revenue and volume during the reporting period - Distribution and selling expenses were approximately **RMB64.3 millions**, a year-on-year decrease of approximately **4.6%**[95](index=95&type=chunk) - The decrease was primarily attributable to reduced employee bonuses and transportation costs, consistent with the decline in sales revenue and volume[95](index=95&type=chunk) [Administrative Expenses](index=35&type=section&id=Administrative%20Expenses) Administrative expenses decreased by **3.2%** year-on-year to **RMB66.5 millions**, mainly due to reduced depreciation of property, plant and equipment and property taxes, resulting from the closure of a production base and full depreciation of some assets - Administrative expenses were approximately **RMB66.5 millions**, a year-on-year decrease of approximately **3.2%**[96](index=96&type=chunk) - The decrease was mainly due to a combined reduction of **RMB2.5 millions** in depreciation of property, plant and equipment and property taxes[96](index=96&type=chunk) [Adjusted EBITDA](index=36&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, a non-HKFRS measure, provides additional insight into the Group's core operating performance, totaling **RMB70.2 millions** for the reporting period, a **10.9%** year-on-year decrease Reconciliation of Profit for the Period to Adjusted EBITDA (RMB thousands) | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Profit for the period | 21,551 | 32,809 | | Finance income | (3,913) | (6,315) | | Finance costs (excluding other finance costs) | 3,511 | 4,065 | | Income tax | 7,689 | 4,160 | | Depreciation | 40,250 | 42,663 | | Amortisation of intangible assets | 1,035 | 1,195 | | EBITDA | 70,123 | 78,557 | | Add: Share of net loss of associates | 86 | 213 | | **Adjusted EBITDA** | **70,209** | **78,790** | - Adjusted EBITDA decreased by **10.9%** year-on-year[8](index=8&type=chunk) - Adjusted EBITDA is a non-HKFRS performance measure, aiming to eliminate impacts that management believes do not reflect the Group's core operations[97](index=97&type=chunk)[98](index=98&type=chunk) [Strategic Development and Investment Projects](index=37&type=section&id=Strategic%20Development%20and%20Investment%20Projects) The Group has invested in several consumer goods companies with synergistic business operations, but no new investment projects were added during the reporting period; the fair value of investments remained unchanged, contrasting with a fair value loss recognized in the prior year - The Group has invested in several consumer goods companies with synergistic business operations[99](index=99&type=chunk) - No new investment projects were added during the reporting period[99](index=99&type=chunk) - The fair value of the Group's investments remained unchanged during the reporting period (a fair value loss of approximately **RMB1.3 millions** was recognized in the first half of **2024**)[99](index=99&type=chunk) [Product Development and Upgrades](index=37&type=section&id=Product%20Development%20and%20Upgrades) The Group is committed to developing popular, natural, healthy, nutritious, and delicious high-quality products, increasing investment in product innovation, production facilities, and quality inspection equipment; new products are continuously launched across all lines to meet consumer demand for healthy snacks and enhance market position - The Group is committed to developing popular, natural, healthy, nutritious, and delicious high-quality products, and increasing investment in product innovation, production facilities, and quality inspection equipment[100](index=100&type=chunk) - Jelly products will continue to be developed to improve gross profit margin, with innovative and healthy new products launched[100](index=100&type=chunk) - Puffed food products launched "Seaweed Crispy Fruit," which is not fried and contains no trans fats, focusing on expanding the "Potato Chips" and "Qinqin Ring" series[100](index=100&type=chunk) - Seasoning products aim to "make cooking simpler," launching new flavor products and expanding into the catering and household markets[101](index=101&type=chunk) - Other snack products will continue to research and develop new healthy concept snack products, including candy, chocolate, biscuits, baked goods, and rice wine snacks[101](index=101&type=chunk) [Promotion and Marketing](index=38&type=section&id=Promotion%20and%20Marketing) The Group continues to strengthen distribution channels and retail terminal management, increasing retail points, and focusing on promoting key and co-branded products; it actively utilizes social media platforms like WeChat, Weibo, Douyin, Xiaohongshu, and Bilibili for engaging with young consumers and collaborates with strategic investment partners for product promotion - The Group will continue to strengthen the management of its distribution channels and retail terminals, increasing the number of retail outlets[102](index=102&type=chunk) - It will focus on promoting key products and co-branded products, and re-optimize and upgrade the packaging of key products[102](index=102&type=chunk) - It fully utilizes social media platforms such as WeChat, Weibo, Douyin, Xiaohongshu, and Bilibili to effectively interact with young consumer groups[102](index=102&type=chunk) - It continues to collaborate with strategic investment partners to jointly promote products through e-commerce channels, food expos, and trade fairs[102](index=102&type=chunk) [Channel Expansion](index=38&type=section&id=Channel%20Expansion) The Group expanded its distribution network by entering new channels such as snack brand stores, convenience stores, campus stores, and gas stations, partially offsetting reduced traditional channel sales; its e-commerce strategy shifted to high-margin self-produced products, actively partnering with new retailers, while export trade and OEM manufacturing also continued to grow - The Group continues to expand its existing distributor network by extending into new channels such as snack brand stores, convenience stores, campus stores, and gas stations[103](index=103&type=chunk) - Sales through emerging snack chain stores significantly increased, partially offsetting the reduction in sales from traditional channels[103](index=103&type=chunk) - The e-commerce business development strategy is to reduce sales of low-margin products through e-commerce channels and increase the proportion of higher-margin self-produced products[103](index=103&type=chunk) - It actively expanded into export trade and OEM manufacturing, successfully developing new international customers[104](index=104&type=chunk) [Optimization of Production Facilities](index=38&type=section&id=Optimization%20of%20Production%20Facilities) The Group has a clear plan for production facility and equipment development, completing construction and expansion of multiple production bases; during the reporting period, it decided to terminate a construction project in Xiaogan, Hubei Province, recognizing an impairment loss, and continues to invest in automation and technological upgrades to enhance efficiency and product quality - The Group has completed the development and construction of production bases in various regions of China, including expansion projects in Xiantao City (Hubei Province), Xiaogan City (Hubei Province), Jining City (Shandong Province), Meishan City (Sichuan Province), and Quanzhou City (Fujian Province)[105](index=105&type=chunk) - The Group decided to discontinue a construction development project in Xiaogan City, Hubei Province, China, and recognized a one-off impairment loss of **RMB5.4 millions** on construction in progress[106](index=106&type=chunk) - Capital expenditure for improving existing production base projects during the reporting period was approximately **RMB17.4 millions**[106](index=106&type=chunk) - The Group aims to reduce labor costs by continuously enhancing the automation capabilities of its production facilities and introducing world-leading jelly and puffed food production lines[107](index=107&type=chunk) [Future Outlook and Strategies](index=39&type=section&id=Future%20Outlook%20and%20Strategies) Despite market challenges, the Group remains optimistic, focusing on continuous product innovation, channel expansion, production facility optimization, refining internal management, and seeking strategic investment opportunities to drive business growth and create greater shareholder value - Through continuous product innovation to seize new opportunities brought by consumption upgrades, adhering to a multi-category and cost-effective product strategy[108](index=108&type=chunk) - Expanding sales channels, consolidating the existing distribution network, gradually developing and allocating more higher-margin products, and actively exploring new market channels such as snack brand stores and catering channels[112](index=112&type=chunk) - Continuously improving production facilities, enhancing production processes and product quality, improving environmental benefits, and moving towards green production[112](index=112&type=chunk) - Refining internal management processes, strengthening the integration of various software and digital transformation to improve efficiency; investing in talent development and information management systems[112](index=112&type=chunk) - Seeking opportunities to invest in consumer goods companies with rapid development potential and synergistic effects with the Group's business[112](index=112&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The Group maintains a sound financial position with a net cash position of **RMB277.1 millions** as of June 30, 2025, though it decreased due to repayment of bills payable; the current ratio improved, and capital expenditures primarily funded new production equipment and ongoing factory projects - As of **June 30, 2025**, the Group was in a net cash position of **RMB277.1 millions** (December 31, 2024: **RMB415.1 millions**)[109](index=109&type=chunk) - The decrease in net cash position was primarily due to the repayment of bills payable maturing in the first half of **2025**, resulting in a reduction of **RMB132.3 millions**[109](index=109&type=chunk) - As of **June 30, 2025**, net current assets were **RMB235.4 millions** (December 31, 2024: **RMB182.1 millions**), and the current ratio was **1.7 times** (December 31, 2024: **1.3 times**)[109](index=109&type=chunk) - The Group obtained trade finance facilities totaling **RMB390.0 millions**, of which **RMB100.7 millions** have been utilized[110](index=110&type=chunk) - Capital expenditure for the first half of **2025** was **RMB17.4 millions**, primarily for purchasing new production equipment and ongoing construction projects at several factories[111](index=111&type=chunk) [Commitments and Contingent Liabilities](index=41&type=section&id=Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group's total contracted but unprovided capital commitments were approximately **RMB20.8 millions**, with other commitments (short-term operating leases) around **RMB0.2 millions**; there were no significant contingent liabilities during the reporting period - As of **June 30, 2025**, total contracted but unprovided capital commitments were approximately **RMB20.8 millions** (December 31, 2024: **RMB26.2 millions**)[113](index=113&type=chunk) - As of **June 30, 2025**, minimum lease payments due in the future under irrevocable short-term operating leases were approximately **RMB0.2 millions** (December 31, 2024: **RMB2.1 millions**)[113](index=113&type=chunk) - As of **June 30, 2025**, and **December 31, 2024**, the Group had no significant contingent liabilities[114](index=114&type=chunk) [Material Investments Held and Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=41&type=section&id=Material%20Investments%20Held%20and%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) Except as disclosed in this report, the Group held no other material investments and undertook no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - The Group held no other material investments during the period[115](index=115&type=chunk) - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[115](index=115&type=chunk) [Pledge of Assets](index=41&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged land use rights and buildings with a net book value of **RMB361.4 millions** as collateral for bank borrowings of **RMB150.1 millions**; additionally, **RMB19.5 millions** in restricted bank deposits were pledged for short-term trade finance - As of **June 30, 2025**, the Group pledged land use rights and buildings with a net book value of **RMB361.4 millions** as collateral for bank borrowings of **RMB150.1 millions**[116](index=116&type=chunk) - As of **June 30, 2025**, the Group also had **RMB100.7 millions** in short-term trade finance, secured by restricted bank deposits of **RMB19.5 millions**[116](index=116&type=chunk) [Human Resources and Management](index=41&type=section&id=Human%20Resources%20and%20Management) As of June 30, 2025, the Group employed approximately **2,400** staff, with total employee benefit expenses increasing due to higher pension and social welfare liabilities; the Group fosters a sense of community, offers competitive compensation and benefits, and provides continuous education and training programs - As of **June 30, 2025**, the Group had approximately **2,400** employees[117](index=117&type=chunk) - Total employee benefit expenses were approximately **RMB99.1 millions**, mainly due to increased pension and other social welfare liabilities for domestic employees in China[117](index=117&type=chunk) - The Group determines employee remuneration based on qualifications, work experience, position, and performance, and provides benefits such as performance bonuses, meal allowances, and free accommodation[117](index=117&type=chunk) - The Group provides various internal and external education and training programs to develop its employees[117](index=117&type=chunk) [Foreign Exchange Risk](index=41&type=section&id=Foreign%20Exchange%20Risk) The Group's functional currency is RMB, with foreign exchange risk primarily arising from assets and liabilities denominated in HKD, USD, and other currencies; a foreign exchange loss of **RMB0.8 millions** was recorded during the review period, and the Group closely monitors exchange rates to mitigate risk - The Group's functional currency is RMB, and foreign exchange risk primarily arises from assets or liabilities denominated in HKD, USD, and other currencies[118](index=118&type=chunk) - During the review period, the Group recorded foreign exchange losses totaling **RMB0.8 millions** arising from cash and cash equivalents denominated in HKD and USD[119](index=119&type=chunk) - The Group closely monitors HKD and USD exchange rate risks to maintain them at an acceptable level, and buys and sells foreign currencies at spot rates when necessary to mitigate risk[119](index=119&type=chunk) [Other Information](index=42&type=section&id=Other%20Information) This chapter provides additional important information beyond financial and operational analysis, including interim dividend policy, directors' and substantial shareholders' interests in securities, share option scheme details, corporate governance code compliance, changes in directors' information, fundraising and listed securities transactions, and the audit committee's review of interim results [Interim Dividend](index=42&type=section&id=Interim%20Dividend) The Board decided not to declare an interim dividend for the six months ended June 30, 2025 - The Board did not declare an interim dividend for the six months ended **June 30, 2025** (June 30, 2024: nil)[120](index=120&type=chunk) [Directors' Interests in Securities](index=43&type=section&id=Directors'%20Interests%20in%20Securities) This section discloses directors' interests and short positions in the Company's shares, underlying shares, or debentures as of June 30, 2025, including interests of controlled corporations, beneficial ownership, and share options Directors' Long Positions in the Company's Shares (June 30, 2025) | Name of Director | Capacity/Nature of interest | Number of shares interested | Number of underlying shares interested (share options) | Approximate percentage of interest in the Company | | :--- | :--- | :--- | :--- | :--- | | Mr. Xu Qingliu | Interest of controlled corporation/Corporate interest | 425,806,219 | — | 56.39% | | Mr. Shi Wenbo | Beneficial owner and founder of discretionary trust/Personal and other interests | 45,760,919 | — | 6.06% | | Mr. Wu Wenxu | Beneficial owner/Personal interest | — | 120,000 | 0.02% | | Mr. Huang Weiliang | Beneficial owner/Personal interest | — | 48,000 | 0.01% | - Interests in underlying shares (unlisted derivatives settled in physical form) are share options granted to directors under the Company's share option scheme[123](index=123&type=chunk) [Interests of Substantial Shareholders and Other Persons in Shares](index=44&type=section&id=Interests%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20Shares) This section lists substantial shareholders and other persons holding **5%** or more disclosable interests or short positions in the Company's shares and underlying shares as of June 30, 2025, including Sure Wonder Limited and Tin Lee Investment Limited Substantial Shareholders' Long Positions in the Company's Shares (June 30, 2025) | Substantial Shareholder | Capacity/Nature of interest | Number of shares interested | Approximate percentage of interest in the Company | | :--- | :--- | :--- | :--- | | Sure Wonder Limited | Beneficial owner/Beneficial interest | 425,806,219 | 56.39% | | Tin Lee Investment Limited | Beneficial owner/Beneficial interest | 45,645,799 | 6.05% | | Hang Seng Bank (Trustee) Limited | Trustee/Other interest | 45,645,799 | 6.05% | - Sure Wonder Limited is wholly owned by **Mr. Xu Qingliu**, the Company's Chairman and Executive Director[125](index=125&type=chunk) - Tin Lee Investment Limited is a wholly-owned subsidiary of Tin Wing Holdings Limited, which is wholly owned by **Hang Seng Bank (Trustee) Limited** as trustee of the Shi Family Trust[125](index=125&type=chunk) [Share Options](index=45&type=section&id=Share%20Options) This section details changes in share options granted under the share option scheme for the six months ended June 30, 2025, including the number of options held by directors and other employees, exercise prices, and exercise periods, noting no fair value of share options recognized in the consolidated statement of profit or loss for the period Details of Share Option Movements (For the six months ended June 30, 2025) | Eligible person | Balance at January 1, 2025 | Cancelled/lapsed during the period | Balance at June 30, 2025 | Exercise price per share (HKD) | Date of grant | Exercise period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Huang Weiliang | 48,000 | — | 48,000 | 2.19 | 23/08/2021 | 24/08/2024-23/08/2025 | | Mr. Wu Wenxu | 120,000 | — | 120,000 | 2.19 | 23/08/2021 | 24/08/2024-23/08/2025 | | Other employees | 2,716,000 | (136,000) | 2,580,000 | 2.19 | 23/08/2021 | 24/08/2024-23/08/2025 | | **Total** | **2,884,000** | **(136,000)** | **2,748,000** | | | | - The fair value of share options granted to employees and directors recognized in the consolidated statement of profit or loss for the six months ended **June 30, 2025**, was **zero**[129](index=129&type=chunk) [Corporate Governance Code](index=46&type=section&id=Corporate%20Governance%20Code) The Group has adopted a corporate governance policy referencing Appendix C1 of the Listing Rules and is committed to maintaining high corporate governance standards; the Board confirms compliance with all applicable code provisions for the six months ended June 30, 2025 - The Group has adopted a corporate governance policy with reference to the Corporate Governance Code set out in Appendix C1 of the Listing Rules[130](index=130&type=chunk) - The Board considers that the Company has complied with all applicable code provisions of the Corporate Governance Code for the six months ended **June 30, 2025**[130](index=130&type=chunk) [Compliance with Model Code](index=46&type=section&id=Compliance%20with%20Model%20Code) 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, and all directors confirmed compliance with its required standards for the six months ended June 30, 2025 - 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[131](index=131&type=chunk) - All Directors confirmed that they have complied with the required standards set out in the Model Code for the six months ended **June 30, 2025**[131](index=131&type=chunk) [Changes in Information of Directors and Chief Executive](index=46&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Chief%20Executive) No other changes in information of directors and chief executive requiring disclosure under Rule 13.51B(1) of the Listing Rules occurred, apart from those already disclosed in this report - No other information requiring disclosure under Rule **13.51B(1)** of the Listing Rules[132](index=132&type=chunk) [Fund Raising and Use of Proceeds](index=46&type=section&id=Fund%20Raising%20and%20Use%20of%20Proceeds) For the six months ended June 30, 2025, and up to the date of this report, the Company had no unutilized proceeds from fundraising activities carried forward to the current financial year, nor any other fundraising activities - For the six months ended **June 30, 2025**, the Company had no unutilized proceeds from fundraising activities carried forward to the current financial year[133](index=133&type=chunk) - There were no other fundraising activities[133](index=133&type=chunk) [Purchase, Redemption or Sale of Listed Securities](index=46&type=section&id=Purchase%20Redemption%20or%20Sale%20of%20Listed%20Securities) During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities, nor were any treasury shares sold or transferred - For the six months ended **June 30, 2025**, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[134](index=134&type=chunk) - No treasury shares of the Company were sold or transferred[134](index=134&type=chunk) [Audit Committee and Review of Interim Results](index=46&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Company's Audit Committee, comprising three independent non-executive directors, reviewed the Group's unaudited interim results and this report for the six months ended June 30, 2025, recommending their adoption by the Board; the interim financial information was also reviewed by the Company's auditor, Tianzhu Hong Kong Certified Public Accountants Limited - The Company's Audit Committee comprises three independent non-executive directors[135](index=135&type=chunk) - The Audit Committee reviewed the Group's unaudited interim results and this report for the six months ended **June 30, 2025**, and recommended their adoption by the Board[135](index=135&type=chunk) - The unaudited interim financial information was also reviewed by the Company's auditor, **Tianzhu Hong Kong Certified Public Accountants Limited**[135](index=135&type=chunk) [Acknowledgement](index=47&type=section&id=Acknowledgement) The Board, on behalf of the Company, extends its sincere gratitude to all employees for their efforts and dedication during the period - The Board, on behalf of the Company, extends its sincere gratitude to all employees for their efforts and dedication during the period[136](index=136&type=chunk)

[Overview](index=1&type=section&id=Overview) The company reported a 7.8% increase in unaudited revenue for the six months ended June 30, 2025, alongside a 25.4% rise in unaudited loss and a 26.5% increase in loss per share Unaudited Financial Highlights | Metric | Six Months Ended June 30, 2025 (SGD) | Six Months Ended June 30, 2024 (SGD) | Change (%) | | :--- | :--- | :--- | :--- | | Unaudited Revenue | 1,490,000 | 1,382,000 | 7.8% | | Unaudited Loss | 1,946,000 | 1,552,000 | 25.4% | | Basic and Diluted Loss Per Share | 0.43 cents | 0.34 cents | 26.5% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, including the statement of comprehensive income, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue increased by 7.8% year-on-year, but the loss for the period expanded by 25.4% due to decreased cost of sales, a shift from other income to loss, and increased selling, distribution, and administrative expenses Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (SGD) | 2024 (SGD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,489,655 | 1,382,320 | 7.8% | | Cost of Sales | (801,092) | (973,022) | -17.6% | | Gross Profit | 688,563 | 409,298 | 68.2% | | Other Income, Gains and Losses, Net | (113,588) | 161,913 | -170.1% | | Selling and Distribution Expenses | (393,552) | (262,744) | 49.8% | | Administrative Expenses | (2,129,075) | (1,887,744) | 12.8% | | Loss Before Tax | (1,945,531) | (1,552,140) | 25.3% | | Loss and Total Comprehensive Expenses for the Period | (1,945,531) | (1,552,140) | 25.3% | | Basic and Diluted Loss Per Share (cents) | (0.43) | (0.34) | 26.5% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets decreased compared to December 31, 2024, primarily due to a significant reduction in cash and cash equivalents, though current liabilities also decreased substantially, maintaining healthy net current assets and current ratio Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (SGD) | December 31, 2024 (SGD) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 5,397,348 | 5,330,620 | 1.25% | | Current Assets | 3,610,612 | 5,879,746 | -38.6% | | Cash and Cash Equivalents | 2,387,123 | 4,928,607 | -51.6% | | Current Liabilities | 255,122 | 591,794 | -56.9% | | Trade and Other Payables | 181,008 | 550,351 | -67.1% | | Net Current Assets | 3,355,490 | 5,287,952 | -36.5% | | Total Assets Less Current Liabilities | 8,752,838 | 10,618,572 | -17.5% | | Non-current Liabilities | 79,797 | – | N/A | | Net Assets (Total Equity) | 8,673,041 | 10,618,572 | -18.3% | [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the Group's total equity decreased by **SGD 1,945,531** due to the loss for the period, leading to a further expansion of accumulated losses Condensed Consolidated Statement of Changes in Equity | Metric | June 30, 2025 (SGD) | January 1, 2024 (SGD) | Change (SGD) | | :--- | :--- | :--- | :--- | | Share Capital | 793,357 | 793,357 | 0 | | Share Premium | 12,398,264 | 12,398,264 | 0 | | Other Reserves | 200,000 | 200,000 | 0 | | Accumulated Losses | (4,718,580) | (143,019) | (4,575,561) | | Total Equity | 8,673,041 | 13,248,602 | (4,575,561) | - The **loss and total comprehensive expenses for the period** amounted to **SGD 1,945,531**, increasing accumulated losses from **SGD (2,773,049)** as of January 1, 2025, to **SGD (4,718,580)** as of June 30, 2025[7](index=7&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group experienced increased cash used in operating activities, a shift from net cash inflow to outflow in investing activities, and a slight increase in cash used in financing activities, leading to a larger net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows | Metric | 2025 (SGD) | 2024 (SGD) | Year-on-Year Change (SGD) | | :--- | :--- | :--- | :--- | | Cash Used in Operations | (2,490,760) | (2,136,464) | (354,296) | | Net Cash From/Used in Investing Activities | (28,845) | 28,048 | (56,893) | | Net Cash Used in Financing Activities | (21,879) | (20,514) | (1,365) | | Net Decrease in Cash and Cash Equivalents | (2,541,484) | (2,128,930) | (412,554) | | Cash and Cash Equivalents at End of Period | 2,387,123 | 6,188,414 | (3,801,291) | - Cash used in operating activities increased, primarily influenced by changes in trade and other receivables, shifting from a net inflow of **SGD 350,592** in 2024 to a net outflow of **SGD (300,360)** in 2025[8](index=8&type=chunk) - Investing activities shifted from a net inflow of **SGD 28,048** in 2024 to a net outflow of **SGD (28,845)** in 2025, mainly due to the purchase of **SGD 33,055** in property, plant, and equipment in 2025[8](index=8&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the condensed consolidated financial information, covering general company details, accounting principles, estimates, financial risk management, and specific financial statement line items [1. General Information](index=7&type=section&id=1.%20General%20Information) Wanma Holdings Limited is incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange, with its subsidiaries primarily engaged in the sale and installation of passenger vehicle leather interiors and electronic accessories, as well as the sale of electronic accessories, auto parts, and vehicles - The company was incorporated in the Cayman Islands on **January 16, 2017**, and is listed on the Main Board of the Hong Kong Stock Exchange[10](index=10&type=chunk) - Principal activities include the sale and installation of passenger vehicle leather interiors and electronic accessories, along with the sale of electronic accessories, auto parts, and vehicles[11](index=11&type=chunk) [2. Basis of Preparation](index=7&type=section&id=2.%20Basis%20of%20Preparation) These condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the Listing Rules of the Stock Exchange, and should be read in conjunction with the company's consolidated financial statements for the year ended December 31, 2024 - The condensed consolidated financial information is prepared in accordance with **International Accounting Standard 34 'Interim Financial Reporting'** and the **Listing Rules of the Stock Exchange**[13](index=13&type=chunk) - Except for changes in accounting policies expected to be reflected in the 2025 annual financial statements, this interim financial report has been prepared using the same accounting policies as those adopted in the 2024 annual financial statements[13](index=13&type=chunk) [3. Changes in Accounting Policies and Disclosures](index=8&type=section&id=3.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) New and revised International Financial Reporting Standards adopted in the current period, such as the amendment to IAS 21 'Lack of Exchangeability', had no significant impact on the Group's financial statements for the current and prior periods - The accounting policies adopted are consistent with those in the 2024 annual financial statements, with only new and revised International Financial Reporting Standards effective for the first time in the current period being adopted[15](index=15&type=chunk) - The new and revised International Financial Reporting Standards had **no significant impact** on the Group's financial statements for the current and prior periods[16](index=16&type=chunk) [4. Estimates](index=8&type=section&id=4.%20Estimates) The significant judgments and estimates made by management in preparing the condensed consolidated financial information, along with the key sources of estimation uncertainty, are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024 - Management is required to make judgments, estimates, and assumptions in preparing the financial information, and actual results may differ from these estimates[17](index=17&type=chunk) - The key sources of significant judgments and estimation uncertainty are the **same as those applied in the 2024 annual consolidated financial statements**[17](index=17&type=chunk) [5. Financial Risk Management](index=8&type=section&id=5.%20Financial%20Risk%20Management) The Group is exposed to market risks (including currency and interest rate risks), credit risk, and liquidity risk, with no changes in risk management policies since December 31, 2024. Fair value measurements for financial assets and liabilities utilize Level 1 and Level 3, with investment properties categorized under Level 3 - The Group is exposed to **market risk** (including currency risk and interest rate risk), **credit risk**, and **liquidity risk**[18](index=18&type=chunk) - There have been **no changes** in risk management policies since December 31, 2024[19](index=19&type=chunk) - The carrying amounts of current financial assets and liabilities approximate their fair values. Financial assets measured at fair value through profit or loss, such as investment properties, are valued using **Level 1 and Level 3** inputs, with investment properties classified under **Level 3** due to significant unobservable inputs[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [6. Revenue and Segment Information](index=9&type=section&id=6.%20Revenue%20and%20Segment%20Information) The Group's business is divided into three segments: passenger vehicle leather interiors, passenger vehicle electronic accessories, and auto parts and vehicles, primarily operating in Singapore. As of June 30, 2025, revenue from passenger vehicle electronic accessories significantly increased, while leather interiors and auto parts and vehicles segments saw decreased revenue, resulting in a slight overall revenue growth but expanded losses across all reportable segments - The Group is divided into three main business segments: **passenger vehicle leather interiors**, **passenger vehicle electronic accessories**, and **auto parts and vehicles**, with primary customers located in Singapore[23](index=23&type=chunk) Segment Revenue | Segment | 2025 Revenue (SGD) | 2024 Revenue (SGD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Passenger Vehicle Leather Interiors | 157,743 | 303,239 | -48.0% | | Passenger Vehicle Electronic Accessories | 1,331,912 | 956,059 | 39.3% | | Auto Parts and Vehicles | – | 123,022 | -100.0% | | **Total Segment Revenue** | **1,489,655** | **1,382,320** | **7.8%** | Reportable Segment Loss | Segment | 2025 Reportable Segment Loss (SGD) | 2024 Reportable Segment Loss (SGD) | Year-on-Year Change (SGD) | | :--- | :--- | :--- | :--- | | Passenger Vehicle Leather Interiors | (233,693) | (363,048) | 129,355 | | Passenger Vehicle Electronic Accessories | (1,759,173) | (1,074,687) | (684,486) | | Auto Parts and Vehicles | – | (138,218) | 138,218 | | **Loss Before Tax** | **(1,945,531)** | **(1,552,140)** | **(393,391)** | [7. Other Income, Gains and Losses, Net](index=12&type=section&id=7.%20Other%20Income%2C%20Gains%20and%20Losses%2C%20Net) For the six months ended June 30, 2025, the Group's other income, gains, and losses, net, shifted from a net gain of **SGD 161,913** in the prior year to a net loss of **SGD 113,588**, primarily impacted by exchange losses Other Income, Gains and Losses, Net | Metric | 2025 (SGD) | 2024 (SGD) | Year-on-Year Change (SGD) | | :--- | :--- | :--- | :--- | | Net Exchange Gains and Losses | (232,378) | 67,243 | (299,621) | | Special Employment Credit | 17,790 | 10,070 | 7,720 | | Rental Income | 99,000 | 84,600 | 14,400 | | Government Grants | 2,000 | – | 2,000 | | **Total** | **(113,588)** | **161,913** | **(275,501)** | - The shift from net exchange gains in 2024 to **net exchange losses** in 2025 was the primary reason for the significant decrease in net other income[28](index=28&type=chunk) [8. Loss Before Tax](index=12&type=section&id=8.%20Loss%20Before%20Tax) For the six months ended June 30, 2025, the Group's loss before tax increased, primarily due to significant rises in employee benefit costs, entertainment expenses, and travel expenses, partially offset by decreases in cost of inventories and legal and professional fees Loss Before Tax Components | Metric | 2025 (SGD) | 2024 (SGD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Cost of Inventories | 269,855 | 451,556 | -40.2% | | Employee Benefit Costs | 1,875,266 | 1,828,656 | 2.5% | | Entertainment Expenses | 171,632 | 77,892 | 120.3% | | Travel Expenses | 263,746 | 146,625 | 79.9% | | Legal and Professional Fees | 153,018 | 231,637 | -34.0% | - Total **employee benefit costs** (including directors' emoluments) increased from **SGD 1,828,656** to **SGD 1,875,266**[29](index=29&type=chunk)[30](index=30&type=chunk) [9. Dividends](index=13&type=section&id=9.%20Dividends) The company has not paid or declared any dividends since its incorporation, and the Board does not recommend paying any dividends for the six months ended June 30, 2025 - The company has **not paid or declared any dividends** since its incorporation[30](index=30&type=chunk) - The Board does **not recommend** the payment of any dividend for the six months ended June 30, 2025[31](index=31&type=chunk) [10. Loss Per Share](index=13&type=section&id=10.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share was **0.43 Singapore cents**, an increase from **0.34 Singapore cents** in the prior year, reflecting the expanded loss for the period Loss Per Share Calculation | Metric | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 1,945,532 | 1,552,140 | | Weighted Average Number of Ordinary Shares in Issue | 450,000,000 | 450,000,000 | | Basic and Diluted Loss Per Share (Singapore cents) | 0.43 | 0.34 | - Diluted loss per share is the **same as basic loss per share** as there are no potential dilutive ordinary shares[32](index=32&type=chunk) [11. Property, Plant and Equipment](index=14&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the Group's net book value of property, plant, and equipment slightly decreased, primarily because depreciation expenses exceeded new additions during the period Property, Plant and Equipment Movement | Metric | June 30, 2025 (SGD) | December 31, 2024 (SGD) | | :--- | :--- | :--- | | Net Book Value at Beginning of Period | 789,775 | N/A | | Additions | 33,055 | N/A | | Depreciation | (65,722) | N/A | | Net Book Value at End of Period | 757,108 | 789,775 | - Additions of **SGD 33,055** for machinery and motor vehicles were made during the period[33](index=33&type=chunk) [12. Right-of-Use Assets / Lease Liabilities](index=14&type=section&id=12.%20Right-of-Use%20Assets%20%2F%20Lease%20Liabilities) As of June 30, 2025, the Group's right-of-use assets and lease liabilities both significantly increased, reflecting new lease arrangements, which led to a reduction in total lease cash outflows Right-of-Use Assets and Lease Liabilities | Metric | June 30, 2025 (SGD) | December 31, 2024 (SGD) | | :--- | :--- | :--- | | Right-of-Use Assets (Leased Properties) | 119,341 | 6,362 | | Lease Liabilities (Non-current) | 79,797 | – | | Lease Liabilities (Current) | 41,468 | 6,797 | | **Total Lease Liabilities** | **121,265** | **6,797** | - Depreciation expense for right-of-use assets was **SGD 21,279**, and interest expense was **SGD 2,089**[33](index=33&type=chunk) - Total lease cash outflows for the six months ended June 30, 2025, amounted to **SGD 21,881**, a decrease from **SGD 42,771** as of December 31, 2024[34](index=34&type=chunk) [13. Investment in an Associate](index=15&type=section&id=13.%20Investment%20in%20an%20Associate) The Group's investment in associate Ocean Dragon Group Limited was fully impaired as of December 31, 2023, as the company could not ascertain its true financial position, and an ongoing investigation suggests no recoverable value Investment in an Associate | Metric | June 30, 2025 (SGD) | December 31, 2024 (SGD) | | :--- | :--- | :--- | | Share of Net Assets | 17,526 | 17,526 | | Goodwill Arising on Acquisition | 6,403,965 | 6,403,965 | | Less: Impairment Loss | (6,421,491) | (6,421,491) | | **Total** | **–** | **–** | - The Group acquired a **49% equity interest** in Ocean Dragon Group Limited in 2022, but the investment has been **fully impaired** due to the inability to ascertain its true financial position[35](index=35&type=chunk) - The company has reported the case to the **Hong Kong Police Force**, and investigations are ongoing[35](index=35&type=chunk) [14. Trade and Other Receivables](index=16&type=section&id=14.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and other receivables increased, primarily due to growth in prepaid operating expenses and other receivables, while trade receivables slightly decreased Trade and Other Receivables | Metric | June 30, 2025 (SGD) | December 31, 2024 (SGD) | | :--- | :--- | :--- | | Trade Receivables | 494,634 | 584,409 | | Prepaid Operating Expenses | 361,831 | 376 | | Other Receivables | 160,752 | 132,874 | | **Total** | **1,024,288** | **723,928** | - The aging analysis of trade receivables indicates that unbilled revenue and amounts aged **1-30 days** constitute the largest proportions[38](index=38&type=chunk) - As of June 30, 2025, **no significant loss allowance** was recognized[38](index=38&type=chunk) [15. Share Capital](index=17&type=section&id=15.%20Share%20Capital) As of June 30, 2025, and December 31, 2024, the company's authorized share capital and issued and fully paid share capital remained unchanged Share Capital Structure | Metric | Number of Ordinary Shares | Share Capital (SGD) | Share Premium (SGD) | | :--- | :--- | :--- | :--- | | Authorized Share Capital | 10,000,000,000 | 17,822,268 | – | | Issued and Fully Paid Share Capital | 450,000,000 | 793,357 | 12,398,264 | - The share capital structure remained **stable with no changes**[39](index=39&type=chunk)[40](index=40&type=chunk) [16. Trade and Other Payables](index=17&type=section&id=16.%20Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables significantly decreased, primarily due to substantial reductions in accrued bonuses and accrued operating expenses Trade and Other Payables | Metric | June 30, 2025 (SGD) | December 31, 2024 (SGD) | | :--- | :--- | :--- | | Trade Payables | 14,954 | 32,229 | | Accrued Operating Expenses | 17,870 | 150,277 | | Accrued Bonuses | – | 258,750 | | Goods and Services Tax Payable | 66,480 | 47,975 | | Other Payables and Accruals | 81,704 | 61,120 | | **Total** | **181,008** | **550,351** | - The aging analysis of trade payables indicates that **all amounts are within 1 to 30 days**[41](index=41&type=chunk) [17. Related Party Transactions](index=18&type=section&id=17.%20Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group had no related party transactions involving service fees received, whereas in the prior year, financial advisory service fees were paid to Hongbo Capital Limited Related Party Transactions | Transaction Type | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Service Fees Received | – | 66,844 | - The service fees paid in 2024 were for financial advisory services provided by **Hongbo Capital Limited**, a company in which Mr. Cai Danyee is a shareholder[42](index=42&type=chunk) - Key management personnel emoluments are disclosed in **Note 8(a)**[43](index=43&type=chunk) [18. Commitments](index=18&type=section&id=18.%20Commitments) As of June 30, 2025, the Group, as lessor, had future minimum lease receivables of **SGD 57,750** under non-cancellable operating lease agreements, with a lease term of less than one year Operating Lease Commitments | Period | June 30, 2025 (SGD) | December 31, 2024 (SGD) | | :--- | :--- | :--- | | Within 1 year | 57,750 | 156,750 | | After 1 year but within 5 years | – | – | | **Total** | **57,750** | **156,750** | - The Group has entered into commercial property leases for its investment properties, with remaining lease terms of **one to two years**, and rental fees are subject to annual adjustment based on market conditions[44](index=44&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's business performance, financial condition, key risks, capital structure, and future outlook [Business Review and Outlook](index=19&type=section&id=Business%20Review%20and%20Outlook) The Group faces challenges from the US-China trade war and a complex global economic environment, with persistently weak business and consumer confidence. Despite a slight increase in new car registrations in Singapore due to higher Certificate of Entitlement quotas in 2025, economic uncertainties continue to challenge the Group's operations, which remains focused on innovative products and quality services for future performance - The Group faces challenges from the **US-China trade war** and a complex and severe global economic environment, with persistently **weak business and consumer confidence**[46](index=46&type=chunk) - The **Certificate of Entitlement (COE) quota for 2025** is higher than in 2024, leading to a **slight increase** in new car registrations and demand in Singapore[46](index=46&type=chunk) - The Group will continue to focus on providing **innovative products and quality services**, confident in achieving good progress through its marketing strategies[47](index=47&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) For the period, the Group's total revenue grew by **7.8%**, and gross profit significantly increased by **68.2%**, primarily driven by higher sales of high-margin passenger vehicle electronic accessories and changes in product mix. However, the loss for the period expanded due to exchange losses from foreign currency transactions and increased entertainment and travel expenses [Revenue](index=19&type=section&id=Revenue) Revenue increased by **7.8%** to approximately **SGD 1.49 million**, primarily driven by higher sales of passenger vehicle electronic accessories - For the six months ended June 30, 2025, total revenue was approximately **SGD 1,490,000**, an increase of approximately **SGD 108,000** or **7.8%** compared to the same period in 2024[48](index=48&type=chunk) - The increase in revenue was primarily attributable to **higher sales of passenger vehicle electronic accessories**[48](index=48&type=chunk) [Gross Profit](index=20&type=section&id=Gross%20Profit) Gross profit increased by **68.2%** to approximately **SGD 689,000**, with the gross profit margin rising to **46.2%**, driven by higher-margin electronic accessories and product mix changes - Gross profit increased by approximately **SGD 280,000** or **68.2%** from approximately **SGD 409,000** in the same period of 2024 to approximately **SGD 689,000** in the current period[49](index=49&type=chunk) - The gross profit margin increased from approximately **29.6%** in the same period of 2024 to approximately **46.2%** in the current period[49](index=49&type=chunk) - The increase in gross profit was mainly due to **higher sales and installations of high-margin electronic accessories** and a change in product mix resulting from **reduced sales of low-margin auto parts and vehicles**[49](index=49&type=chunk) [Other Income, Gains and Losses, Net](index=20&type=section&id=Other%20Income%2C%20Gains%20and%20Losses%2C%20Net_FR) Other income, gains, and losses, net, shifted from a net gain of **SGD 162,000** in 2024 to a net loss of **SGD 114,000** in 2025, primarily due to exchange losses - Other income, gains and losses, net, for the current period was a **net loss of approximately SGD 114,000**, compared to a net gain of **SGD 162,000** in the same period of 2024[50](index=50&type=chunk) - This was primarily due to **exchange losses** arising from the settlement of foreign currency transactions and the translation of foreign currency denominated monetary assets and liabilities at period-end exchange rates[50](index=50&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by approximately **SGD 131,000** to **SGD 394,000**, mainly due to higher entertainment expenses and employee remuneration - Selling and distribution expenses increased by approximately **SGD 131,000** from approximately **SGD 263,000** in the same period of 2024 to approximately **SGD 394,000** in the current period[51](index=51&type=chunk) - The increase was mainly due to **higher entertainment expenses and employee remuneration**[51](index=51&type=chunk) [Administrative Expenses](index=20&type=section&id=Administrative%20Expenses) Administrative expenses increased by approximately **SGD 241,000** to **SGD 2.129 million**, primarily driven by higher travel expenses - Administrative expenses increased by approximately **SGD 241,000** from approximately **SGD 1,888,000** in the same period of 2024 to approximately **SGD 2,129,000** in the current period[52](index=52&type=chunk) - The increase was mainly due to **higher travel expenses**[52](index=52&type=chunk) [Loss for the Period](index=20&type=section&id=Loss%20for%20the%20Period) The loss for the period expanded to approximately **SGD 1.946 million**, primarily due to increased entertainment and travel expenses and a shift from other income to net loss from exchange differences - A loss of approximately **SGD 1,946,000** was recorded for the current period, compared to a loss of approximately **SGD 1,552,000** in the same period of 2024[53](index=53&type=chunk) - Key reasons for the increased net loss include: entertainment and travel expenses rising from approximately **SGD 0.2 million** to approximately **SGD 0.4 million**, and other income, gains and losses, net, shifting from a gain to a loss, primarily impacted by exchange losses[54](index=54&type=chunk)[55](index=55&type=chunk) [Key Risks and Uncertainties and Risk Management](index=21&type=section&id=Key%20Risks%20and%20Uncertainties%20and%20Risk%20Management) The Group faces multiple business risks, including reliance on its largest customer, maintaining reputation and customer service, technician and foreign worker supply, dependence on suppliers, and a single-market business strategy (Singapore COE quota limitations) - Key business risks include reduced or lost business with the **largest customer**, maintaining **reputation and customer service**, securing **technician and foreign worker supply**, and **reliance on suppliers** for passenger vehicle leather interiors and electronic accessories[56](index=56&type=chunk) - The Group is highly dependent on a **single market** for business development, and its operations may be significantly affected by **Certificate of Entitlement (COE) quota limitations**[56](index=56&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=21&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's net current assets and cash and cash equivalents both decreased, but the current ratio improved due to lower trade and other payables balances. The Group has no borrowings and primarily funds operations through business revenue and available cash Capital Structure and Liquidity | Metric | June 30, 2025 (SGD) | December 31, 2024 (SGD) | | :--- | :--- | :--- | | Net Current Assets | 3,355,000 | 5,288,000 | | Cash and Cash Equivalents | 2,387,000 | 4,929,000 | | Current Ratio (times) | 14.2 | 9.9 | - The increase in the current ratio was primarily due to **lower balances of trade and other payables**[57](index=57&type=chunk) - The Group had **no borrowings** as of June 30, 2025[57](index=57&type=chunk) [Future Plans for Material Investments or Capital Assets](index=21&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the date of this interim results announcement, the Group currently has no plans to acquire other material investments or capital assets, other than those already disclosed - The Group currently has **no plans to acquire other material investments or capital assets**[58](index=58&type=chunk) [Employee Information](index=21&type=section&id=Employee%20Information) As of June 30, 2025, the Group's total number of employees increased to **46**, including **3** executive directors. Total staff costs for the period increased, and the Group incentivizes employees through bonuses, gratuities, and promoting internal advancement Employee Headcount | Employee Category | June 30, 2025 (Number) | December 31, 2024 (Number) | | :--- | :--- | :--- | | Executive Directors | 3 | 2 | | Non-executive Directors | 1 | 1 | | Independent Non-executive Directors | 3 | 3 | | Administrative Employees | 12 | 12 | | Technicians | 27 | 27 | | **Total** | **46** | **45** | - Total staff costs (including directors' emoluments) for the current period were approximately **SGD 1,875,000**, an increase from **SGD 1,829,000** in the same period of 2024[60](index=60&type=chunk) - The Group provides **bonuses for technicians** and **gratuities for all employees**, promoting **internal advancement** to enhance employee satisfaction and customer service quality[60](index=60&type=chunk) [Material Acquisitions or Disposals of Subsidiaries and Affiliated Companies](index=22&type=section&id=Material%20Acquisitions%20or%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies) During the current period, the Group had no material acquisitions or disposals of subsidiaries and affiliated companies - During the current period, there were **no material acquisitions or disposals of subsidiaries and affiliated companies**[61](index=61&type=chunk) [Direct and Ultimate Controlling Parties](index=22&type=section&id=Direct%20and%20Ultimate%20Controlling%20Parties) As of June 30, 2025, the company's direct parent company is Billion Legend Company Limited, and the ultimate controlling party is Mr. Lo Wing Tak, the Executive Director and Chairman of the Board - The direct parent company is **Billion Legend Company Limited**, incorporated in the British Virgin Islands[62](index=62&type=chunk) - The ultimate controlling party is **Mr. Lo Wing Tak**, the Executive Director and Chairman of the Board[63](index=63&type=chunk) [Pledge of Group Assets](index=22&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, leased properties with a carrying amount of approximately **SGD 311,000** have been pledged to secure the Group's bank financing - Leased properties with a total carrying amount of approximately **SGD 311,000** have been pledged to provide security for the Group's bank financing[64](index=64&type=chunk) [Foreign Exchange Risk](index=22&type=section&id=Foreign%20Exchange%20Risk) The Group is exposed to foreign exchange risk from HKD, USD, and MYR; a 10% depreciation or appreciation of foreign currencies against SGD would decrease/increase profit after tax by **SGD 177,000** for the period. The Group currently has no foreign currency hedging policy - The Group's foreign exchange risk primarily arises from **HKD, USD, and MYR**[65](index=65&type=chunk) - A **10% depreciation or appreciation** of foreign currencies against SGD would result in a decrease/increase in profit after tax of **SGD 177,000** for the current period[65](index=65&type=chunk) - The Group currently has **no foreign currency hedging policy**, but management will continue to monitor and take appropriate measures when necessary[65](index=65&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section includes additional disclosures on material investments, contingent liabilities, events after the reporting period, and corporate governance details [Material Investments Held by the Group](index=23&type=section&id=Material%20Investments%20Held%20by%20the%20Group) During the current period, the Group held no material investments - During the current period, the Group **held no material investments**[66](index=66&type=chunk) [Contingent Liabilities](index=23&type=section&id=Contingent%20Liabilities) During the current period, the Directors were not aware of any significant contingent liabilities - During the current period, the Directors were **not aware of any significant contingent liabilities**[67](index=67&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the company proposed a rights issue to allot up to **225,000,000** rights shares at **HKD 0.18** per share on the basis of one rights share for every two existing shares, aiming to raise a maximum of approximately **HKD 40.5 million**. The rights issue is currently ongoing - The company proposed a rights issue to allot up to **225,000,000** rights shares at a subscription price of **HKD 0.18** per share on the basis of **one rights share for every two existing shares**[68](index=68&type=chunk) - The rights issue is expected to raise gross proceeds of up to approximately **HKD 40.5 million** (before expenses)[68](index=68&type=chunk) - The rights issue is **currently ongoing and has not yet been completed**[68](index=68&type=chunk) [Corporate Governance and Other Information](index=23&type=section&id=Corporate%20Governance%20and%20Other%20Information) During the period, the company's Board of Directors underwent several changes, with multiple independent non-executive directors resigning and new members appointed. Mr. Lo Wing Tak, Executive Director and Chairman, is considered the ultimate controlling party. The company has complied with the Corporate Governance Code and Listing Rules, and directors confirmed adherence to the Model Code for Securities Transactions. The Board does not recommend an interim dividend, and the Audit Committee has reviewed the interim results [Changes in Directors' Information](index=23&type=section&id=Changes%20in%20Directors%27%20Information) The Board of Directors experienced multiple changes, including resignations and appointments of independent non-executive directors, and new roles for executive directors - Mr. Cheng Wai Hei, Mr. Lam Chi Wing, and Ms. Li Jia Yao resigned as **Independent Non-executive Directors** and from their respective committee positions on **June 30, 2025**[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - Mr. Lo Wing Tak was appointed as the **Chairman of the Nomination Committee** on **June 30, 2025**, and as the **Authorised Representative** of the company on **July 31, 2025**[71](index=71&type=chunk) - Mr. Yuan Qinghua was appointed as an **Executive Director** on **June 30, 2025**[71](index=71&type=chunk) - Mr. Liu Wuhui, Mr. Ma Zhangkai, and Ms. Zhu Xiaoxin were appointed as **Independent Non-executive Directors** and to their respective committee positions on **June 30, 2025**[72](index=72&type=chunk) - Mr. Zi Chen and Mr. Cai Danyee resigned as **Executive Director** and **Non-executive Director** and Authorised Representative, respectively, on **July 31, 2025**[72](index=72&type=chunk)[73](index=73&type=chunk) [Directors' and Chief Executive's Interests and/or Short Positions in the Shares, Underlying Shares and Debentures of the Company or Any Specified Undertaking or Any Other Associated Corporation](index=25&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%2For%20Short%20Positions%20in%20the%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20Any%20Specified%20Undertaking%20or%20Any%20Other%20Associated%20Corporation) Mr. Lo Wing Tak holds a significant interest in the company's shares through a controlled corporation and beneficial ownership, with no other directors or chief executives holding disclosable interests Directors' and Chief Executive's Interests | Director's Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Company's Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lo Wing Tak | Interest in controlled corporation (Billion Legend) | 230,000,000 (L) | 51.11% | | Mr. Lo Wing Tak | Beneficial owner | 100,000 (L) | 0.02% | - Save as disclosed above, no other director or chief executive had any disclosable interests or short positions in the shares, underlying shares, or debentures of the company or any of its associated corporations[75](index=75&type=chunk) [Substantial Shareholders' Interests and/or Short Positions in the Shares and Underlying Shares of the Company](index=26&type=section&id=Substantial%20Shareholders%27%20Interests%20and%2For%20Short%20Positions%20in%20the%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) Mr. Lo Wing Tak and Billion Legend Company Limited are substantial shareholders, with Mr. Lo beneficially owning Billion Legend, which holds over **51%** of the company's shares Substantial Shareholders' Interests | Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Company's Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lo Wing Tak | Interest in controlled corporation | 230,000,000 (L) | 51.11% | | Mr. Lo Wing Tak | Beneficial owner | 100,000 (L) | 0.02% | | Billion Legend | Beneficial owner | 230,000,000 (L) | 51.11% | - The entire issued share capital of Billion Legend Company Limited is legally and beneficially owned by Mr. Lo Wing Tak, who is therefore deemed to be interested in the shares held by Billion Legend[77](index=77&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme in **2017** with a ten-year validity, but no options have been granted under the scheme as of **June 30, 2025** - The company adopted a share option scheme on **June 23, 2017**, with a validity period of **ten years**[78](index=78&type=chunk) - No share options have been granted under the share option scheme from its effective date up to **June 30, 2025**[78](index=78&type=chunk) [Competition and Conflicts of Interest](index=26&type=section&id=Competition%20and%20Conflicts%20of%20Interest) No directors, major shareholders, or management shareholders were engaged in any business directly or indirectly competing with the Group, nor did they have any other conflicts of interest during the period - During the current period, none of the company's directors, major shareholders, or management shareholders, or any of their respective associates, engaged in any business that directly or indirectly competes or may compete with the Group's business, or had any other conflicts of interest with the Group[79](index=79&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=27&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) Aside from the share option scheme, no arrangements existed during the period for directors to acquire benefits through shares or debentures of the company or any other body corporate - Save for the share option scheme, neither the company nor any associated corporation entered into any arrangements during the current period that would enable directors to acquire benefits by acquiring shares or debentures of the company or any other body corporate[80](index=80&type=chunk) - No directors, their spouses, or children under the age of 18 had any rights to subscribe for shares or debentures of the company, nor did they exercise any such rights[80](index=80&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries redeemed, purchased, or sold any of the company's shares during the period up to the announcement date - Neither the company nor any of its subsidiaries redeemed, purchased, or sold any of the company's shares during the current period up to the date of this announcement[81](index=81&type=chunk) [Compliance with Corporate Governance](index=27&type=section&id=Compliance%20with%20Corporate%20Governance) The company complied with all code provisions of the Corporate Governance Code for the six months ended June 30, 2025, with executive directors fulfilling the CEO's role to ensure efficient decision-making - For the six months ended June 30, 2025, the company has **complied with all code provisions** of the Corporate Governance Code as set out in Appendix C1 Part 2 of the Listing Rules[82](index=82&type=chunk) - The company has **not appointed a Chief Executive Officer**, with the role and functions performed by the Executive Directors, an arrangement the Board believes ensures prompt and effective decision-making with adequate checks and balances[83](index=83&type=chunk) [Compliance with Listing Rules](index=27&type=section&id=Compliance%20with%20Listing%20Rules) The company has consistently complied with the requirements of the Listing Rules for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company has **complied with the requirements of the Listing Rules**[84](index=84&type=chunk) [Standard Code for Securities Transactions by Directors](index=28&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Model Code for Securities Transactions by Directors, and all directors confirmed their compliance with its required standards 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[85](index=85&type=chunk) - All Directors confirmed that they have **complied with the required standards** set out in the Model Code throughout the current period and up to the date of this announcement[85](index=85&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the current period - The Board does **not recommend** the payment of an interim dividend for the current period[86](index=86&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors chaired by Mr. Liu Wuhui, reviewed the unaudited condensed consolidated interim results and found them compliant with applicable standards and rules - The Audit Committee is composed of **three Independent Non-executive Directors**, with **Mr. Liu Wuhui** serving as Chairman[87](index=87&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the current period and is of the opinion that they comply with applicable accounting standards, the Listing Rules, and other applicable legal requirements, and that adequate disclosures have been made[87](index=87&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倚 賴該等內容而引致之任何損失承擔任何責任。 中國銀行股份有限公司 BANK OF CHINA LIMITED （於中華人民共和國註冊成立的股份有限公司） （「本行」） （股份代號：3988） 公告 董事會決議 本行於2025年8月29日在北京以現場表決方式召開董事會會議，會議通知於2025 年8月15日通過書面及電子郵件方式送達至本行所有董事和監事。本次會議由董 事長葛海蛟先生主持，會議應出席董事14名，親自出席董事14名。監事會成員及 高級管理層成員列席了會議。會議的召開符合《中華人民共和國公司法》等有關法 律、行政法規、部門規章、規範性文件和《中國銀行股份有限公司章程》（「《公司 章程》」）的規定。出席會議的董事審議並以記名方式投票表決通過了如下議案： 一、中國銀行2025年半年度報告 贊成：14 反對：0 棄權：0 本行董事會審計委員會已審議通過中國銀行2025年半年度報告中的財務報 告，同意提交董事會審批。 詳情請查閱本行同日刊登在香港交 ...