[Financial Summary](index=1&type=section&id=Financial%20Summary) Revenue declined by 24.2%, but operating and net profits significantly increased, despite decreases in key operating metrics [Key Financial Indicators](index=1&type=section&id=Financial%20Summary-Key%20Financial%20Indicators) During the reporting period, the company's revenue decreased by 24.2% year-on-year, while operating profit and profit for the period significantly increased by 170.2% and 102.8% respectively, with non-IFRS adjusted net profit growing by 92.0% Key Financial Metrics | Metric (RMB thousands) | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | Y-o-Y Change (%) | Year Ended December 31, 2024 (Audited) | | :--------------------- | :----------------------------------------- | :----------------------------------------- | :--------------- | :------------------------------------- | | Revenue | 2,677,543 | 3,533,173 | (24.2) | 6,850,721 | | Cost of Sales | (1,400,581) | (1,873,214) | (25.2) | (3,508,024) | | Gross Profit | 1,276,962 | 1,659,959 | (23.1) | 3,342,697 | | Operating Profit | 369,356 | 136,687 | 170.2 | 220,291 | | Profit for the Period/Year | 273,979 | 135,115 | 102.8 | 216,642 | | Non-IFRS Adjusted Net Profit | 281,277 | 146,485 | 92.0 | 234,393 | [Key Operating Data](index=2&type=section&id=Financial%20Summary-Key%20Operating%20Data) During the reporting period, the company's main products saw decreases in Monthly Average Active Users and Monthly Average Revenue Per User by 16.1% and 9.8% year-on-year, respectively Key Operating Metrics | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | Y-o-Y Change (%) | Year Ended December 31, 2024 (Audited) | | :-------------------------- | :----------------------------------------- | :----------------------------------------- | :--------------- | :------------------------------------- | | Monthly Average Active Users (thousands) | 20,185 | 24,045 | (16.1) | 20,836 | | Monthly Average Revenue Per User (RMB) | 22.1 | 24.5 | (9.8) | 27.4 | [Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) This section covers the group's strategic business review, financial performance, liquidity, human resources, and dividend policy for the reporting period [Business Review and Outlook](index=3&type=section&id=Business%20Review%20and%20Outlook) The Group maintains its long-term strategy, embracing advanced technologies and diversified growth, with live social and innovative businesses evolving, and future plans focusing on AI integration and global expansion [Overall Strategy and Market Environment](index=3&type=section&id=Business%20Review%20and%20Outlook-Overall%20Strategy%20and%20Market%20Environment) In H1 2025, the Group actively responded to market changes, maintaining its long-term strategy, embracing advanced technologies, and exploring diversified growth, particularly in live social and innovative businesses - The Group adheres to its long-term development strategy, actively embracing cutting-edge technological changes and exploring diversified growth paths[5](index=5&type=chunk) - The live social business actively addresses market challenges by deepening platform ecosystem development and integrating AI technology applications[5](index=5&type=chunk) - Innovative business segments achieved rapid development, with short-form drama business maintaining industry leadership and overseas business deepening presence in Southeast Asia while expanding to new regions[5](index=5&type=chunk) - Future plans include continuously deepening AI technology applications, accelerating localized deployment in overseas markets, and focusing on Web3.0 and digital asset development[6](index=6&type=chunk) [Business Review](index=3&type=section&id=Business%20Review%20and%20Outlook-Business%20Review) The Group's live social business remained stable through refined operations and AI integration, while innovative businesses rapidly developed, and the Group remains optimistic about Web3.0 and blockchain [Live Social Business](index=3&type=section&id=Business%20Review%20and%20Outlook-Business%20Review-Live%20Social%20Business) As a cornerstone business, live social maintained stability in a complex market, enhancing user stickiness and interaction through refined operations, ecosystem building, and AI technology integration - Live social business maintains stable development, laying a foundation through refined operations and forward-looking technology deployment[7](index=7&type=chunk) - Continuously deepening the development of streamer and guild ecosystems, enhancing product technology and operational barriers, and increasing user stickiness[7](index=7&type=chunk) - Actively embracing AI technology, exploring its integration with social products, and innovating user interaction experiences[7](index=7&type=chunk) [Innovative Businesses](index=4&type=section&id=Business%20Review%20and%20Outlook-Business%20Review-Innovative%20Businesses) Innovative businesses achieved rapid growth in H1 2025, with short-form drama leading the market and overseas operations expanding through localization, while the Group remains optimistic about Web3.0 and blockchain - Innovative businesses achieved rapid development in the first half, with short-form drama business demonstrating dual improvements in production capacity and content quality, maintaining industry leadership[8](index=8&type=chunk) - Overseas business deepens its presence in core markets like Southeast Asia and the Middle East, while expanding into new markets, enhancing user reputation and commercialization efficiency through localized teams and product iterations[8](index=8&type=chunk) - The Group maintains an optimistic attitude towards the Web3.0 and blockchain industries, holding and continuously expanding its cryptocurrency reserves long-term[8](index=8&type=chunk) - Actively promoting AI technology to empower businesses, exploring user experience enhancement and business model innovation[8](index=8&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Review%20and%20Outlook-Business%20Outlook) The Group plans to foster a healthy live social ecosystem, increase AI investment, deepen overseas market strategies, and proactively explore AI and Web3.0 for long-term growth [Core Business and AI Applications](index=4&type=section&id=Business%20Review%20and%20Outlook-Business%20Outlook-Core%20Business%20and%20AI%20Applications) The Group will focus on building a sustainable live social ecosystem, increasing investment in AI and other cutting-edge technologies to enhance user experience and platform value - Committed to building a long-term healthy and sustainable live social ecosystem, increasing investment in AI and other cutting-edge technologies[9](index=9&type=chunk) - Integrating advantageous resources, improving operational efficiency, and continuously exploring diverse and segmented social entertainment needs of users[9](index=9&type=chunk) - Focusing on the exploration of AI technology applications in live social scenarios, enhancing user experience and platform value through differentiated product positioning and refined user operations[9](index=9&type=chunk) [Overseas Market Expansion](index=4&type=section&id=Business%20Review%20and%20Outlook-Business%20Outlook-Overseas%20Market%20Expansion) The Group will deepen its overseas market strategy through differentiated regional approaches and localized innovation, strengthening operations and brand building while expanding into new markets - Deepening overseas market strategic layout, building a more comprehensive overseas interactive entertainment ecosystem through differentiated regional development strategies and localized innovation[10](index=10&type=chunk) - Strengthening localized operations and brand building, continuously exploring new markets with development potential based on core market experience[10](index=10&type=chunk) - Continuously exploring user needs, optimizing product experience, and exploring cutting-edge technology applications to enhance product competitiveness[10](index=10&type=chunk) [AI and Web3.0 Forward-looking Layout](index=5&type=section&id=Business%20Review%20and%20Outlook-Business%20Outlook-AI%20and%20Web3.0%20Forward-looking%20Layout) The Group actively embraces AI development, exploring its business growth potential, while remaining optimistic about blockchain and cryptocurrency as core anchors for future asset security and global expansion - Actively embracing the rapid development trend of the AI industry, deeply exploring effective paths for AI technology to drive business growth[11](index=11&type=chunk) - Continuously optimistic about the development potential of the blockchain industry and the growth potential of cryptocurrencies, and continuously allocating related assets[11](index=11&type=chunk) - Positioning cryptocurrencies as a core anchor for future asset security, growth, and globalization[11](index=11&type=chunk) [Financial Review](index=5&type=section&id=Financial%20Review) During the period, Group revenue decreased by 24.2%, but operating profit and profit for the period significantly increased, with sales costs declining, gross margin stable, and other net income turning positive [Revenue and Cost](index=5&type=section&id=Financial%20Review-Revenue%20and%20Cost) Group revenue decreased by 24.2% to RMB2,677.5 million, primarily due to strategic adjustments, while cost of sales decreased by 25.2%, and gross profit declined by 23.1% with a stable gross margin of 47.7% Revenue and Cost Metrics | Metric (RMB millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Y-o-Y Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------------- | | Revenue | 2,677.5 | 3,533.2 | (24.2) | | Cost of Sales | 1,400.6 | 1,873.2 | (25.2) | | Gross Profit | 1,277.0 | 1,660.0 | (23.1) | | Gross Margin | 47.7% | 47.0% | +0.7pp | - Revenue decrease is primarily due to the Group's strategic and business focus adjustments, with some innovative business lines still in exploration and initial development stages[12](index=12&type=chunk) [Expenses and Profit](index=6&type=section&id=Financial%20Review-Expenses%20and%20Profit) Sales and marketing, administrative, and R&D expenses all decreased, while other net income turned positive due to fair value gains, and profit for the period increased by 102.8% Expense and Profit Metrics | Metric (RMB millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Y-o-Y Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------------- | | Sales and Marketing Expenses | 990.2 | 1,289.7 | (23.2) | | Administrative Expenses | 108.6 | 131.5 | (17.5) | | Research and Development Expenses | 82.7 | 99.1 | (16.6) | | Other Net Income/(Loss) | 297.2 (Income) | (18.5) (Loss) | N/A | | Net Finance Income | 16.9 | 20.5 | (17.5) | | Share of Loss of Investments Accounted for Using Equity Method | 51.1 | 1.3 | 3830.8 | | Income Tax Expense | 61.2 | 20.8 | 194.2 | | Profit for the Period | 274.0 | 135.1 | 102.8 | - Other net income significantly turned positive, primarily due to an increase in the fair value of certain financial assets at fair value through profit or loss[18](index=18&type=chunk) - Share of loss of investments accounted for using the equity method significantly increased, primarily due to increased investment losses recognized by associates and joint ventures[20](index=20&type=chunk) [Non-IFRS Measure—Adjusted Net Profit](index=7&type=section&id=Financial%20Review-Non-IFRS%20Measure%E2%80%94Adjusted%20Net%20Profit) The Group uses non-IFRS adjusted net profit, excluding share-based compensation, as a supplementary financial measure, which increased by 92.0% to RMB281.3 million during the period Non-IFRS Adjusted Net Profit Reconciliation | Metric (RMB thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :----------------------------- | :----------------------------- | | Profit for the Period | 273,979 | 135,115 | | Add: Share-based compensation expenses (non-cash) | 7,298 | 11,370 | | Adjusted Net Profit | 281,277 | 146,485 | - Adjusted net profit increased by **92.0%** year-on-year, reflecting improved operating performance after excluding share-based compensation expenses[2](index=2&type=chunk) [Liquidity and Capital Resources](index=8&type=section&id=Liquidity%20and%20Capital%20Resources) The Group funds operations primarily through cash from operating activities, showing improved liquidity and gearing ratios, increased financial assets at fair value, and significant capital expenditure, while managing contingent liabilities and foreign exchange risk [Liquidity and Gearing Ratios](index=8&type=section&id=Liquidity%20and%20Capital%20Resources-Liquidity%20and%20Gearing%20Ratios) As of June 30, 2025, the Group's current ratio improved to 5.9 from 3.7, and the gearing ratio decreased to 0.1 from 0.3, indicating enhanced liquidity and reduced debt levels Liquidity and Gearing Ratios | Metric | June 30, 2025 | December 31, 2024 | Change | | :------------ | :------------ | :---------------- | :------- | | Current Ratio | 5.9 | 3.7 | Increase | | Gearing Ratio | 0.1 | 0.3 | Decrease | - The Group primarily funds its operations through cash generated from operating activities and plans to fund expansion and business operations through internal resources and sustainable growth[24](index=24&type=chunk) [Cash and Cash Equivalents and Restricted Cash](index=8&type=section&id=Liquidity%20and%20Capital%20Resources-Cash%20and%20Cash%20Equivalents%20and%20Restricted%20Cash) As of June 30, 2025, cash and cash equivalents decreased to RMB1,690.2 million, while restricted cash significantly declined to RMB68.9 million, including funds frozen due to regulatory investigations Cash and Restricted Cash | Metric (RMB millions) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----------------- | | Cash and Cash Equivalents | 1,690.2 | 2,195.7 | Decrease | | Restricted Cash | 68.9 | 319.6 | Significant Decrease | - Approximately **RMB28.5 million** of restricted cash is related to investigations by local regulatory authorities, resulting in a portion of cash being frozen[26](index=26&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=9&type=section&id=Liquidity%20and%20Capital%20Resources-Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, total financial assets at fair value through profit or loss significantly increased to RMB1,566.3 million, primarily comprising investment products and financial instruments with preference rights Financial Assets at Fair Value Through Profit or Loss Breakdown | Financial Asset Category (RMB thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | **Subtotal Investment Products** | **1,391,230** | **564,849** | | - Listed equity securities | 751,584 | 302,439 | | - Derivative options on listed equity securities | 56,132 | – | | - Funds | 544,514 | 147,410 | | - Others | 39,000 | 115,000 | | **Subtotal Unlisted Preference Shares** | **175,043** | **194,520** | | **Total** | **1,566,273** | **759,369** | - Investment product subscriptions aim to maximize returns on unutilized funds, considering risk levels, investment returns, liquidity, and maturity periods[28](index=28&type=chunk) - Directors believe the investment products' risks are controllable, terms are fair and reasonable, align with the overall interests of the Company and shareholders, and are expected to generate stable income[29](index=29&type=chunk) [Capital Expenditure](index=10&type=section&id=Liquidity%20and%20Capital%20Resources-Capital%20Expenditure) Capital expenditure significantly increased to RMB231.2 million during the period, primarily for equipment, leasehold improvements, and intangible assets, funded by operating cash flow Capital Expenditure | Metric (RMB millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Y-o-Y Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------------- | | Capital Expenditure | 231.2 | 69.6 | 232.2 | - Capital expenditure was primarily for the purchase of equipment, leasehold improvements, and intangible assets to support business development[30](index=30&type=chunk) [Contingent Liabilities and Guarantees](index=10&type=section&id=Liquidity%20and%20Capital%20Resources-Contingent%20Liabilities%20and%20Guarantees) As of June 30, 2025, approximately RMB28.5 million in bank deposits were frozen due to regulatory investigations, with management unable to estimate potential financial impact despite believing operations comply with regulations - Approximately **RMB28.5 million** in bank deposits were frozen due to investigations by local regulatory authorities[31](index=31&type=chunk) - Management believes the Group's business operations comply with Chinese regulations and has not received any summons as a defendant, thus having no present obligation[31](index=31&type=chunk) - Due to ongoing investigations and lack of detailed information, the potential financial impact cannot be assessed or estimated, and therefore no provision has been made[31](index=31&type=chunk) [Pledge of Assets](index=10&type=section&id=Liquidity%20and%20Capital%20Resources-Pledge%20of%20Assets) As of June 30, 2025, the Group had not pledged or charged any assets - As of June 30, 2025, the Group had no assets pledged or charged[32](index=32&type=chunk) [Foreign Exchange Risk Management](index=11&type=section&id=Liquidity%20and%20Capital%20Resources-Foreign%20Exchange%20Risk%20Management) The Group manages foreign exchange risk by regularly reviewing net exposure and utilizing natural hedges, potentially entering into forward foreign exchange contracts when necessary - The Group manages foreign exchange risk by regularly reviewing net foreign exchange exposure and using natural hedges where possible[33](index=33&type=chunk) - Forward foreign exchange contracts may be entered into when necessary to mitigate risk[33](index=33&type=chunk) [Employees and Remuneration Policy](index=11&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 1,462 full-time employees, with 389 in technology and R&D, and maintains a remuneration policy based on experience, qualifications, and market conditions, alongside talent development programs Employee Headcount | Metric | June 30, 2025 | | :--------------------- | :------------ | | Total Full-time Employees | 1,462 | | Technology and R&D Employees | 389 | - Remuneration policy is based on experience, qualifications, and market conditions, including basic salary, allowances, bonuses, share-based payments, and other benefits[34](index=34&type=chunk) - The Group maintains good labor relations and has established efficient and systematic talent training and development programs to enhance employee skills and professional ethics[34](index=34&type=chunk)[35](index=35&type=chunk) [Interim Dividend](index=11&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the first half of 2025[36](index=36&type=chunk) [Interim Condensed Consolidated Financial Statements](index=12&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the interim condensed consolidated financial statements, including the statement of comprehensive income, statement of financial position, and statement of changes in equity [Interim Condensed Consolidated Statement of Comprehensive Income](index=12&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) During the reporting period, the Group recorded revenue of RMB2,677,543 thousand, profit for the period of RMB273,979 thousand, with basic and diluted earnings per share both at RMB0.13 Consolidated Statement of Comprehensive Income | Metric (RMB thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :----------------------------- | :----------------------------- | | Revenue | 2,677,543 | 3,533,173 | | Gross Profit | 1,276,962 | 1,659,959 | | Operating Profit | 369,356 | 136,687 | | Profit for the Period | 273,979 | 135,115 | | Profit Attributable to Owners of the Company | 244,269 | 120,599 | | Total Comprehensive Income for the Period (Net of Tax) | 266,837 | 140,944 | | Basic Earnings Per Share (RMB) | 0.13 | 0.06 | | Diluted Earnings Per Share (RMB) | 0.13 | 0.06 | [Interim Condensed Consolidated Statement of Financial Position](index=14&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were RMB5,424,739 thousand, total equity RMB4,718,392 thousand, and total liabilities RMB706,347 thousand, with significant increases in intangible assets and financial assets at fair value through profit or loss Consolidated Statement of Financial Position | Metric (RMB thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Total Assets | 5,424,739 | 5,572,333 | | Total Non-current Assets | 1,575,564 | 1,607,414 | | Total Current Assets | 3,849,175 | 3,964,919 | | Total Equity | 4,718,392 | 4,446,266 | | Total Liabilities | 706,347 | 1,126,067 | | Total Non-current Liabilities | 52,081 | 47,362 | | Total Current Liabilities | 654,266 | 1,078,705 | - Intangible assets increased from **RMB214,243 thousand** at the end of 2024 to **RMB387,111 thousand**[41](index=41&type=chunk) - Current financial assets at fair value through profit or loss increased from **RMB564,849 thousand** at the end of 2024 to **RMB1,391,230 thousand**[41](index=41&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=16&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, total equity attributable to owners of the Company was RMB4,642,433 thousand, with non-controlling interests of RMB75,959 thousand, and total comprehensive income for the period of RMB266,837 thousand Consolidated Statement of Changes in Equity | Metric (RMB thousands) | June 30, 2025 (Unaudited) | January 1, 2024 (Balance) | | :--------------------- | :------------------------ | :------------------------ | | Subtotal Equity Attributable to Owners of the Company | 4,642,433 | 4,266,133 | | Non-controlling Interests | 75,959 | 15,710 | | Total | 4,718,392 | 4,281,843 | | Total Comprehensive Income for the Period | 266,837 | 140,944 (June 30, 2024) | - Accumulated profits increased from **RMB231,304 thousand** as of January 1, 2024, to **RMB655,885 thousand** as of June 30, 2025[43](index=43&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=17&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes on the basis of preparation, accounting policy changes, estimates, revenue breakdown, expense details, income tax, earnings per share, dividends, and trade receivables and payables [General Information](index=17&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-General%20Information) Inkeverse Group Company Limited primarily engages in value-added services and entertainment content in China, is registered in the Cayman Islands, listed on the HKEX, and presents financial information in RMB - Inkeverse Group primarily engages in value-added services and entertainment content services in China[44](index=44&type=chunk) - The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong, and financial information is presented in RMB[45](index=45&type=chunk)[46](index=46&type=chunk) [Basis of Preparation of Financial Information](index=17&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Basis%20of%20Preparation%20of%20Financial%20Information) The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements - The financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[47](index=47&type=chunk) - It should be read in conjunction with the Company's annual report for the year ended December 31, 2024[47](index=47&type=chunk) [Changes in Accounting Policies](index=17&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Changes%20in%20Accounting%20Policies) Adopted accounting policies are consistent with the prior fiscal year, except for income tax estimates and new/amended standards, with no significant impact expected from newly issued but unadopted standards - Accounting policies are consistent with the prior fiscal year, except for income tax estimates and the adoption of new and amended standards[48](index=48&type=chunk) - The Group is not required to change accounting policies or make retrospective adjustments due to the adoption of new and amended standards[50](index=50&type=chunk) - Newly issued but not yet adopted standards are not expected to have a significant impact on future reporting periods[51](index=51&type=chunk) [Estimates](index=18&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Estimates) The preparation of interim condensed consolidated financial information involves management judgments, estimates, and assumptions, with significant uncertainties consistent with the 2024 annual consolidated financial statements - Financial information preparation involves management judgments, estimates, and assumptions, and actual results may differ from these estimates[52](index=52&type=chunk) - The significant judgments and sources of estimation uncertainty made by management in preparing this financial information are consistent with those in the 2024 annual consolidated financial statements[52](index=52&type=chunk) [Revenue Breakdown](index=18&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Revenue%20Breakdown) During the reporting period, the Group's revenue primarily derived from value-added services and entertainment content services, with value-added services being the largest component but showing a year-on-year decrease Revenue by Category | Revenue Category (RMB thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :----------------------------- | :----------------------------- | | Value-added Services | 2,034,496 | 2,601,174 | | Entertainment Content Services | 590,364 | 642,749 | | Others | 52,683 | 289,250 | | **Total Revenue** | **2,677,543** | **3,533,173** | Revenue Recognition Timing | Revenue Recognition Timing (RMB thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Revenue recognized at a point in time | 2,576,513 | 3,419,944 | | Revenue recognized over a period of time | 101,030 | 113,229 | | **Total Revenue** | **2,677,543** | **3,533,173** | [Expense Details](index=19&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Expense%20Details) Key expenses include streamer sharing, promotion and advertising, and employee benefits, with streamer sharing and advertising expenses decreasing, and expected credit loss provisions shifting from reversal to provision Expense Breakdown | Expense Category (RMB thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :----------------------------- | :----------------------------- | | Streamer Sharing | 1,120,427 | 1,458,817 | | Promotion and Advertising Expenses | 966,576 | 1,259,338 | | Employee Benefit Expenses | 246,080 | 296,385 | | Payment Handling Fees | 55,558 | 61,007 | | Amortization of Intangible Assets | 52,852 | 61,599 | | Technical Support and Professional Service Fees | 45,306 | 39,710 | | Bandwidth and Server Hosting Fees | 36,216 | 50,170 | | Expected Credit Loss Provision/(Reversal) | 30,504 | (1,574) | | Cost of Goods Sold | 2,004 | 97,004 | | **Total Expenses** | **2,612,519** | **3,392,063** | - Expected credit loss provision shifted from a reversal in the same period of 2024 to a provision in the first half of 2025[56](index=56&type=chunk) - Cost of goods sold significantly decreased from **RMB97,004 thousand** to **RMB2,004 thousand**[56](index=56&type=chunk) [Income Tax Expense](index=19&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Income%20Tax%20Expense) Income tax expense significantly increased by 194.2% to RMB61,229 thousand during the period, primarily due to higher current income tax expense and deferred tax shifting from credit to expense Income Tax Breakdown | Income Tax Category (RMB thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Current Income Tax Expense | (52,163) | (23,035) | | Deferred Tax (Expense)/Credit | (9,066) | 2,221 | | **Income Tax Expense** | **(61,229)** | **(20,814)** | - Income tax expense increased by **194.2%** year-on-year, primarily due to an increase in profit before tax[21](index=21&type=chunk)[57](index=57&type=chunk) [Earnings Per Share](index=20&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners of the Company both significantly increased to RMB0.13 during the reporting period, up from RMB0.06 in the prior period Earnings Per Share | Metric (RMB) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Basic Earnings Per Share | 0.13 | 0.06 | | Diluted Earnings Per Share | 0.13 | 0.06 | - Basic and diluted earnings per share both significantly increased, reflecting improved company profitability[59](index=59&type=chunk)[60](index=60&type=chunk) [Dividends](index=20&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Dividends) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the first half of 2025[59](index=59&type=chunk) [Trade Receivables](index=21&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Trade%20Receivables) As of June 30, 2025, total trade receivables increased to RMB167,320 thousand, with the majority of receivables aged within three months Trade Receivables Aging Analysis | Aging (RMB thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Up to 3 months | 162,363 | 143,716 | | 3 to 6 months | 9,493 | 6,325 | | 6 months to 1 year | 1,412 | 1,125 | | Over 1 year | 579 | 1,528 | | Less: Impairment Provision | (6,527) | (4,580) | | **Total** | **167,320** | **148,114** | - The carrying amount of trade receivables is primarily denominated in RMB and approximates fair value[61](index=61&type=chunk) [Trade Payables and Bills Payable](index=21&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information-Trade%20Payables%20and%20Bills%20Payable) As of June 30, 2025, total trade payables and bills payable significantly decreased to RMB459,915 thousand, with the largest portion of trade payables aged within three months Trade Payables and Bills Payable | Category (RMB thousands) | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Trade Payables | 419,587 | 459,269 | | Bills Payable | 40,328 | 286,095 | | **Total** | **459,915** | **745,364** | Trade Payables Aging Analysis | Trade Payables Aging (RMB thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Up to 3 months | 243,668 | 310,103 | | 3 to 6 months | 26,509 | 17,538 | | 6 months to 1 year | 17,803 | 11,169 | | Over 1 year | 131,607 | 120,459 | | **Total** | **419,587** | **459,269** | [Other Information](index=22&type=section&id=Other%20Information) This section covers information on the purchase, sale, or redemption of listed securities, events after the reporting period, compliance with corporate governance codes, and the audit committee's review [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Other%20Information-Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[64](index=64&type=chunk) [Events After the Reporting Period](index=21&type=section&id=Events%20After%20the%20Reporting%20Period) On August 20, 2025, Beijing Milaiwu Network Technology Co., Ltd., a subsidiary, signed an agreement to purchase 9,950,617 Series A preferred shares of Skywork AI Inc. for RMB100 million, with the transaction yet to be completed - On August 20, 2025, Beijing Milaiwu Network Technology Co., Ltd., a subsidiary of the Company, signed a share purchase agreement with Skywork AI Inc[63](index=63&type=chunk)[65](index=65&type=chunk) - Beijing Milaiwu will purchase **9,950,617 Series A preferred shares** of Skywork AI Inc. for **RMB100 million**[63](index=63&type=chunk)[65](index=65&type=chunk) - As of the date of this interim results announcement, the transaction has not yet been completed[65](index=65&type=chunk) [Compliance with Corporate Governance Code](index=22&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted and complied with the Corporate Governance Code, with a deviation from C.2.1 regarding the combined roles of Chairman and CEO, which the Board believes benefits Group management - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code[66](index=66&type=chunk) - There is a deviation from Code Provision C.2.1 of the Corporate Governance Code, where Mr. Feng Yousheng serves as both Chairman and Chief Executive Officer[66](index=66&type=chunk)[67](index=67&type=chunk) - The Board believes this combined role benefits Group management, with senior management and the Board ensuring a balance of power and authority[67](index=67&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=23&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted and confirmed compliance with the Model Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules during the reporting period - The Company has adopted and complied with the Model Code for Securities Transactions by Directors[68](index=68&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors with Mr. Cui Dawei as Chairman, reviewed the interim results, confirming compliance with accounting principles and disclosure requirements, with the financial information reviewed but not audited - The Audit Committee comprises three independent non-executive directors, with Mr. Cui Dawei serving as Chairman[69](index=69&type=chunk) - The Committee has reviewed and discussed the Group's interim results, confirming compliance with applicable accounting principles, standards, and disclosure requirements[69](index=69&type=chunk) - The interim condensed consolidated financial information is unaudited but has been reviewed by the auditor in accordance with International Standard on Review Engagements 2410[69](index=69&type=chunk) [Publication of Interim Results and Interim Report](index=23&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement is published on the HKEX and Company websites, and the interim report will be dispatched to shareholders and published concurrently - This interim results announcement has been published on the website of The Stock Exchange of Hong Kong (www.hkexnews.hk) and the Company's website (www.inkeverse.com)[71](index=71&type=chunk) - The interim report will be dispatched to shareholders in due course and published concurrently on the HKEX and Company websites[71](index=71&type=chunk)

[Company Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Provides key details about the company's executive and independent non-executive directors, stock code, and official website - Executive Directors include **Wong King Cho** (Chairman and CEO), **Chu Kiu Wah**, and **So Han Meng Julian**[5](index=5&type=chunk) - Independent Non-Executive Directors include **Wong Hoi Kuen** (Audit Committee Chairman), **Dr. Chan Sing Yung**, and **Chu Woon Chiu**[5](index=5&type=chunk) - The company's GEM stock code is **8178**, and its website is **www.citd.com.hk**[6](index=6&type=chunk) [Summary](index=6&type=section&id=%E6%A6%82%E8%A6%81) Highlights key financial performance for the first half of 2025, showing increased loss primarily due to investment property fair value changes Key Financial Data for H1 2025 | Metric | H1 2025 (HK$ '000) | H1 2024 (HK$ '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 20,846 | 20,068 | +3.9% | | Loss Attributable to Owners of the Company | (55,625) | (7,686) | Loss widened | | Loss Per Share | (75.92) HK cents | (12.44) HK cents | Loss widened | - The increase in loss is primarily due to a **decrease in fair value of investment properties by approximately HK$51,571,000** during the period[9](index=9&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended **June 30, 2025**[9](index=9&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) Detailed discussion of the Group's business operations, financial performance, future strategies, and significant post-reporting period events, highlighting challenges from macroeconomic factors and a substantial decline in investment property fair value [Business Review](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The company actively navigated geopolitical and macroeconomic challenges, strategically focusing on cloud computing, Web 3.0, and AI technologies, launching innovative products, but overall financial performance was impacted by investment property fair value changes [Overall Business Overview](index=6&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A6%BD) The company strategically focuses on advancements in cloud computing, Web 3.0, and artificial intelligence to meet evolving customer needs and launch cutting-edge products - The company strategically focuses on advancements in **cloud computing, Web 3.0, and artificial intelligence** to meet evolving customer needs and launch cutting-edge products[8](index=8&type=chunk) - The Group prudently navigates geopolitical instability and macroeconomic fluctuations, actively seeking potential business opportunities and new markets[8](index=8&type=chunk) [Subscription of New Shares Under General Mandate](index=7&type=section&id=%E6%A0%B9%E6%93%9A%E4%B8%80%E8%88%AC%E6%8E%88%E6%AC%8A%E8%AA%8D%E8%B3%BC%E6%96%B0%E8%82%A1) The company planned to issue **12,353,000 subscription shares** to **AMKM INVESTMENTS L.L.C** at **HK$6.31 per share** to raise approximately **HK$77,750,000** for working capital, but the subscriber's non-compliance led to termination and legal action - The company planned to allot and issue **12,353,000 subscription shares** to **AMKM INVESTMENTS L.L.C** at a subscription price of **HK$6.31 per share**[10](index=10&type=chunk) - The net proceeds from the subscription were estimated at approximately **HK$77,750,000**, with **70% allocated for general working capital in the UAE** and **30% for general working capital in Hong Kong**[12](index=12&type=chunk) - As the subscriber had not fulfilled its obligations by the announcement date, the company will not proceed with the subscription and is seeking legal advice[13](index=13&type=chunk) [Proposed Disposal of the Property](index=8&type=section&id=%E5%BB%BA%E8%AD%B0%E5%87%BA%E5%94%AE%E8%A9%B2%E7%89%A9%E6%A5%AD) The company planned to dispose of its Guangzhou property for **RMB150,000,000** (approximately **HK$163,800,000**) to reallocate resources, but the buyer withdrew, paying **RMB1,000,000** in compensation, with the Group continuing to seek new buyers - The company had planned to dispose of its Guangzhou property for **RMB150,000,000** (approximately **HK$163,800,000**)[14](index=14&type=chunk) - The disposal aimed to realize the property's value, reallocate financial resources to other business needs, and increase the Group's general working capital[14](index=14&type=chunk) - The buyer decided not to proceed with the sale, compensating the seller **RMB1,000,000**; the Group will continue to seek potential buyers for the property[15](index=15&type=chunk)[16](index=16&type=chunk) [Vanco Systems](index=9&type=section&id=%E8%90%AC%E9%AB%98%E8%A8%8A%E7%A7%91) **Vanco Systems** actively promotes digital transformation in the Hong Kong enterprise market, earning certifications from leading partners and showcasing smart office solutions, with revenue of approximately **HK$11,783,000** for the period, a **+2.7%** Y-o-Y growth - **Vanco Systems** actively promotes digital transformation in the Hong Kong enterprise market, earning certifications and accolades from world-class partners like **Nutanix, Sangfor Technology, IBM, and VMware**[17](index=17&type=chunk) - The Tsim Sha Tsui Experience Centre's situational business flexibility zone allows clients to experience setting up smart offices anywhere with high-speed connectivity[18](index=18&type=chunk) Vanco Systems Revenue | Metric | H1 2025 (HK$ '000) | H1 2024 (HK$ '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 11,783 | 11,471 | +2.7% | [DataCube](index=10&type=section&id=%E6%95%B8%E7%AB%8B%E6%96%B9) **DataCube** utilizes **AI technology** to develop train bogie vibration prediction algorithms and partners with public transport companies, leveraging **AI Book, AI Manager, and BI Canvas** for data analytics and **AI Booster** solutions for smart cities, generating approximately **HK$2,214,000** in revenue, a slight **-0.8%** decrease - **DataCube** utilizes **AI technology** to develop sophisticated algorithms that collect real-time vibration frequency data from train bogies and predict anomalies, collaborating with public transport companies[20](index=20&type=chunk) - Leveraging unique advanced core technologies like **AI Book, AI Manager, and BI Canvas** to promote data modeling and big data analytics, and developing **AI Booster** solutions (smart logistics and CRM systems)[20](index=20&type=chunk)[21](index=21&type=chunk) DataCube Revenue | Metric | H1 2025 (HK$ '000) | H1 2024 (HK$ '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 2,214 | 2,232 | -0.8% | [Popsible](index=11&type=section&id=Popsible) **Popsible Limited** is a service provider specializing in cloud technology and digital marketing, offering cloud solutions for customer loyalty management and data analytics, contributing approximately **HK$574,000** in revenue during the period - **Popsible Limited** is a service provider specializing in **cloud technology and digital marketing**, offering cloud solutions for customer loyalty management and data analytics[22](index=22&type=chunk) Popsible Revenue | Metric | H1 2025 (HK$ '000) | | :--- | :--- | | Revenue | 574 | [Future Prospects](index=11&type=section&id=%E6%9C%AA%E4%BE%86%E5%89%8D%E6%99%AF) The Group will prudently navigate challenging market conditions by expanding into the UAE with localized **AI solutions and blockchain collaborations** to diversify revenue and mitigate domestic market risks, while leveraging **DataCube's AI predictive maintenance** expertise for applications in air traffic, airport train safety, vessel traffic, and agricultural monitoring - The Group will explore the UAE market through localized **AI solutions and blockchain collaborations** to diversify revenue streams and mitigate risks associated with domestic market fluctuations[24](index=24&type=chunk) - The company will leverage **DataCube's experience in AI predictive maintenance** to explore applications in air traffic management, airport train safety, and vessel traffic management systems[24](index=24&type=chunk) - The Group will also use **data analytics** to monitor crop size and health for predictive cultivation environment control, enhancing efficiency and productivity[24](index=24&type=chunk) [Post-Reporting Period Events](index=12&type=section&id=%

[Disclaimer](index=1&type=section&id=Disclaimer) HKEX and SEHK disclaim responsibility for the announcement's content, accuracy, completeness, and any resulting losses [Disclaimer Statement](index=1&type=section&id=Disclaimer%20Statement) HKEX and SEHK disclaim responsibility for the announcement's content, accuracy, completeness, and any resulting losses - HKEX and SEHK are **not responsible** for the content of this announcement, do **not guarantee its accuracy or completeness**, and are **not liable for losses** incurred from reliance on its content[1](index=1&type=chunk) [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) This section provides an overview of Huaxi Holdings Company Limited's interim results for the six months ended June 30, 2025 [Company Information](index=1&type=section&id=Company%20Information) Huaxi Holdings Company Limited (Stock Code: 1689) released its interim results for the six months ended June 30, 2025 - Huaxi Holdings Company Limited (Stock Code: 1689) announced its **interim results** for the six months ended **June 30, 2025**[2](index=2&type=chunk) [Financial Summary](index=1&type=section&id=Financial%20Summary) Revenue increased by 4.9% to 65.7 million HKD, gross profit surged by 120.3%, and loss per share significantly reduced to 0.33 HK cents Key Financial Indicators for H1 FY2025 | Indicator | 2025 H1 (thousand HKD) | YoY Change (%) | | :--- | :--- | :--- | | Revenue | 65,700 | +4.9% | | Gross Profit | 19,890 | +120.3% | | Operating Loss | (1,570) | -92.6% | | Loss Attributable to Owners | (2,300) | -89.0% | | Basic Loss Per Share (HK cents) | (0.33) | -89.0% | - The Board **does not recommend** the payment of an **interim dividend** for the six months ended June 30, 2025[3](index=3&type=chunk) [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 and financial position [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Revenue increased to 65.7 million HKD, gross profit rose to 19.89 million HKD, and loss per share was 0.33 HK cents Summary of Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 65,702 | 62,615 | 3,087 | +4.9% | | Cost of Sales | (45,816) | (53,590) | 7,774 | -14.5% | | Gross Profit | 19,886 | 9,025 | 10,861 | +120.3% | | Operating Loss | (1,566) | (21,241) | 19,675 | -92.6% | | Loss for the Period | (2,323) | (21,046) | 18,723 | -89.0% | | Loss Attributable to Owners of the Company | (2,295) | (20,987) | 18,692 | -89.1% | | Basic Loss Per Share (HK cents) | (0.33) | (2.99) | 2.66 | -89.0% | - In other comprehensive income, currency translation differences shifted from a loss of **2,643 thousand HKD** in 2024 to a gain of **4,112 thousand HKD** in 2025[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased to 330.92 million HKD, cash and cash equivalents fell to 15.14 million HKD, and total liabilities reduced to 131.53 million HKD Summary of Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Non-current Assets | 79,345 | 82,719 | (3,374) | -4.1% | | Current Assets | 251,576 | 268,159 | (16,583) | -6.2% | | Total Assets | 330,921 | 350,878 | (19,957) | -5.7% | | **Equity** | | | | | | Total Equity | 199,395 | 197,606 | 1,789 | +0.9% | | **Liabilities** | | | | | | Non-current Liabilities | 5,054 | 5,520 | (466) | -8.4% | | Current Liabilities | 126,472 | 147,752 | (21,280) | -14.4% | | Total Liabilities | 131,526 | 153,272 | (21,746) | -14.2% | | Cash and Cash Equivalents | 15,139 | 25,826 | (10,687) | -41.4% | | Borrowings | - | 10,260 | (10,260) | -100.0% | - Net trade receivables slightly increased from **143.60 million HKD** at the end of 2024 to **144.50 million HKD** as of June 30, 2025[7](index=7&type=chunk) - Trade payables and bills decreased from **109.27 million HKD** at the end of 2024 to **101.77 million HKD** as of June 30, 2025[8](index=8&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the condensed consolidated financial statements, covering general information, basis of preparation, segment information, revenue, expenses, tax, loss per share, dividends, and trade receivables/payables [General Information](index=6&type=section&id=General%20Information) The company is incorporated in the Cayman Islands, with its main businesses in China being cigarette packaging and environmental restoration - The Company is incorporated in the **Cayman Islands**, with its ultimate parent company, **SXD Limited**, registered in the **British Virgin Islands**[9](index=9&type=chunk) - The Group's principal businesses are the manufacturing and sale of **cigarette packaging materials** and **environmental and ecological restoration** in China[9](index=9&type=chunk) - The Company's shares have been listed on the **Main Board of The Stock Exchange of Hong Kong** since **December 6, 2013**[9](index=9&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) Interim financial information is prepared under HKAS 34 and Listing Rules, with no significant impact from newly adopted HKFRS amendments - The interim financial information is prepared in accordance with the **Listing Rules** of the Stock Exchange and **Hong Kong Accounting Standard 34** 'Interim Financial Reporting'[11](index=11&type=chunk) - The Group first applied HKAS 21 (Amendment) 'Lack of Exchangeability' on **January 1, 2025**, with **no significant impact** on financial position or performance[12](index=12&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group operates cigarette packaging and environmental governance segments, with environmental governance turning profitable and significantly improving segment results - The Group primarily operates **cigarette packaging** and **environmental governance** businesses, both identified as reportable segments[13](index=13&type=chunk) Summary of Segment Results (Six Months Ended June 30) | Indicator | Cigarette Packaging Business (thousand HKD) | Environmental Governance Business (thousand HKD) | Total Group (thousand HKD) | | :--- | :--- | :--- | :--- | | **2025** | | | | | Revenue | 60,298 | 5,404 | 65,702 | | Segment Result | 2,380 | 217 | 2,597 | | **2024** | | | | | Revenue | 58,445 | 4,069 | 62,615 | | Segment Result | 4,077 | (14,572) | (10,394) | - The environmental governance business achieved a turnaround in segment results in H1 2025, shifting from a loss of **14.57 million HKD** in the same period of 2024 to a profit of **0.22 million HKD**[15](index=15&type=chunk)[16](index=16&type=chunk) Summary of Segment Assets and Liabilities (As of June 30) | Indicator | Cigarette Packaging Business (thousand HKD) | Environmental Governance Business (thousand HKD) | Total Group (thousand HKD) | | :--- | :--- | :--- | :--- | | **June 30, 2025** | | | | | Segment Assets | 363,000 | 135,178 | 293,199 | | Segment Liabilities | 62,567 | 267,164 | 124,696 | | Capital Expenditure | 55 | - | 55 | | **December 31, 2024** | | | | | Segment Assets | 367,351 | 141,926 | 313,118 | | Segment Liabilities | 74,648 | 267,422 | 145,834 | | Capital Expenditure | 4,220 | 1,595 | 5,815 | [Revenue](index=10&type=section&id=Revenue) Total revenue increased by 4.9% to 65.70 million HKD, primarily from cigarette packaging and environmental restoration, with two major clients contributing 91.4% of total revenue Revenue Breakdown (Six Months Ended June 30) | Revenue Source | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sale of cigarette packaging products | 60,298 | 58,445 | 1,853 | +3.2% | | Agency services | - | 101 | (101) | -100.0% | | Construction services | 2,376 | 2,625 | (249) | -9.5% | | Maintenance and other services | 3,028 | 1,444 | 1,584 | +109.7% | | **Total Revenue** | **65,702** | **62,615** | **3,087** | **+4.9%** | Revenue Contribution by Major Clients (Six Months Ended June 30) | Client | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Client A | 48.2% | 45.2% | | Client B | 43.2% | 44.6% | - The majority of the Group's revenue is derived from **customers in China**[18](index=18&type=chunk) Contract Assets and Liabilities with Customers (As of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Contract Assets | 17,286 | 19,184 | | Contract Liabilities – Construction Services | 258 | 2,427 | [Expenses by Nature](index=11&type=section&id=Expenses%20by%20Nature) Total cost of sales, distribution, and administrative expenses decreased by 13.9% to 62.01 million HKD, with reductions in staff, raw material, and subcontracting costs Key Expense Breakdown (Six Months Ended June 30) | Expense Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of inventories sold | 34,350 | 35,078 | (728) | -2.1% | | Staff costs | 15,367 | 15,680 | (313) | -2.0% | | Raw materials used and subcontracting costs for construction contracts | 2,847 | 8,666 | (5,819) | -67.2% | | Total depreciation and amortisation | 4,102 | 4,965 | (863) | -17.4% | | Total cost of sales, distribution costs and administrative expenses | 62,011 | 72,064 | (10,053) | -13.9% | Other Gains/(Losses) – Net (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Foreign exchange (loss)/gain | (1,091) | 478 | | Dividend income from financial assets at fair value through profit or loss | 88 | 143 | | Loss on disposal of property, plant and equipment | (3) | (1,423) | | Net fair value gains/(losses) on financial assets at fair value through profit or loss | 1,340 | (10,973) | | **Total** | **334** | **(11,775)** | [Income Tax Expense/Credit](index=12&type=section&id=Income%20Tax%20Expense%2FCredit) Income tax expense was 980 thousand HKD, with tax exemptions for certain entities, varying rates for Hong Kong subsidiaries, and preferential rates for high-tech enterprises in China - The Company's entities in the **Cayman Islands** and **British Virgin Islands** are **exempt from income tax**[23](index=23&type=chunk) - Hong Kong operating subsidiaries are subject to an income tax rate of **16.5%**, with eligible subsidiaries taxed at **8.25%** for the first **2 million HKD** of assessable profits[24](index=24&type=chunk) - Shantou Xinda, as a high-tech enterprise, enjoys a preferential corporate income tax rate of **15%**[25](index=25&type=chunk) - A **5%** withholding income tax rate applies to dividends declared by Chinese subsidiaries to eligible Hong Kong intermediate holding companies[26](index=26&type=chunk) Income Tax Expense/Credit (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Current income tax | (416) | - | | Deferred income tax | (564) | 313 | | **Total** | **(980)** | **313** | [Loss Per Share](index=13&type=section&id=Loss%20Per%20Share) Basic loss per share attributable to owners significantly decreased to 0.33 HK cents, with diluted loss per share being identical Loss Per Share Calculation (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (thousand HKD) | (2,295) | (20,987) | | Weighted average number of ordinary shares in issue | 701,430,000 | 701,430,000 | | Basic loss per share (HK cents) | (0.33) | (2.99) | - Diluted loss per share was the same as basic loss per share due to **no potential dilutive shares outstanding** during the period[30](index=30&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board **does not recommend** the payment of an **interim dividend** for the six months ended June 30, 2025[31](index=31&type=chunk) [Trade Receivables](index=14&type=section&id=Trade%20Receivables) Net trade receivables slightly increased to 144.50 million HKD, with the largest portion being over 365 days, all denominated in RMB Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 90 days | 28,203 | 25,872 | | 91 to 180 days | 1,998 | 9,073 | | 181 to 365 days | 9,642 | 6,114 | | Over 365 days | 167,880 | 161,426 | | **Total** | **207,723** | **202,485** | | Less: Impairment allowance | (63,226) | (58,884) | | **Net** | **144,497** | **143,601** | - The Group's trade receivables are all denominated in **RMB**[32](index=32&type=chunk) [Trade Payables and Bills](index=14&type=section&id=Trade%20Payables%20and%20Bills) Total trade payables and bills decreased to 101.77 million HKD, with the majority due within 90 days, all denominated in RMB Ageing Analysis of Trade Payables and Bills (As of June 30) | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | **Trade Payables** | | | | Within 90 days | 60,961 | 69,652 | | 91 to 180 days | 1,563 | 164 | | Over 180 days | 4,205 | 3,548 | | **Subtotal** | **66,729** | **73,364** | | Bills Payable – Bank Acceptance Bills | 35,045 | 35,901 | | **Total** | **101,774** | **109,265** | - The Group's trade payables and bills are all denominated in **RMB**[33](index=33&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a review of the Group's business operations, financial performance, capital structure, and future outlook [Business and Operations Review](index=15&type=section&id=Business%20and%20Operations%20Review) Revenue grew by 4.9% to 65.7 million HKD, loss attributable to owners decreased by 89.0%, driven by growth in both cigarette packaging and environmental governance businesses - The Group's revenue for the reporting period was approximately **65.7 million HKD**, representing a year-on-year increase of **4.9%**[34](index=34&type=chunk) - Loss attributable to owners of the Company was approximately **2.3 million HKD**, a year-on-year decrease of **89.0%**[34](index=34&type=chunk) Cigarette Packaging Business Revenue Breakdown (Six Months Ended June 30) | Product Category | 2025 (thousand HKD) | 2025 (%) | 2024 (thousand HKD) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Inner Liner Paper | 32,754 | 54.3 | 36,948 | 63.2 | | Tipping Paper | 17,088 | 28.4 | 14,996 | 25.7 | | Frame Paper | 7,072 | 11.7 | 3,924 | 6.7 | | Seal Paper | 3,381 | 5.6 | 2,577 | 4.4 | | Others | 3 | 0.0 | - | - | | **Total** | **60,298** | **100.0** | **58,445** | **100.0** | - Environmental governance business revenue was approximately **5.4 million HKD**, a year-on-year increase of **32.7%**, primarily due to the completion and settlement of existing construction projects and river ecological management contributions[36](index=36&type=chunk) [Financial Performance Review](index=16&type=section&id=Financial%20Performance%20Review) Gross profit surged by 120.3% to 19.89 million HKD, gross margin increased to 30.3%, driven by environmental governance turnaround, while impairment losses increased and tax shifted to an expense - The Group's gross profit was approximately **19.89 million HKD**, representing a year-on-year increase of **120.3%**[37](index=37&type=chunk) - The Group's gross profit margin increased from **14.4%** in the same period of 2024 to **30.3%** in the same period of 2025, an increase of **15.9 percentage points**[37](index=37&type=chunk) - The gross profit margin of the environmental governance business turned profitable, from **-183.8%** in the same period of 2024 to **26.7%** in the same period of 2025[38](index=38&type=chunk) - Administrative expenses decreased by **13.6%** to **15.72 million HKD**[40](index=40&type=chunk) - Net impairment losses on financial and contract assets increased to **5.58 million HKD**, primarily due to long-term overdue balances related to the environmental governance business[41](index=41&type=chunk) - Other net gains were **0.33 million HKD**, compared to a loss of **11.78 million HKD** in the same period last year, mainly due to **stable securities markets** in Hong Kong and China, and net fair value gains on financial assets of **1.34 million HKD**[42](index=42&type=chunk) - Net finance income was **0.22 million HKD**, compared to net finance costs of **0.12 million HKD** in the same period last year[43](index=43&type=chunk) - Income tax expense was **0.98 million HKD**, compared to an income tax credit of **0.31 million HKD** in the same period last year[44](index=44&type=chunk) - Loss attributable to owners of the Company decreased by **89.0%** to **2.3 million HKD**[45](index=45&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=17&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group recorded net gains of 1.43 million HKD on listed securities, including 1.34 million HKD from fair value changes, holding 13.68 million HKD in financial assets at fair value through profit or loss - The Group recorded total net gains on listed securities of approximately **1.43 million HKD** during the reporting period, primarily due to **stable securities markets** in Hong Kong and China[47](index=47&type=chunk) - Fair value gains from changes were approximately **1.34 million HKD**, compared to a loss of **10.97 million HKD** in the same period last year[47](index=47&type=chunk) Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Security Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Equity securities listed in Hong Kong | 701 | 1,236 | | Equity securities listed in China (Luen Thai Environmental) | 6,082 | 5,447 | | Equity securities listed in China (Tianji Shares) | 3,857 | 3,315 | | Other China-listed equity securities | 3,042 | 3,163 | | **Total** | **13,682** | **13,161** | [Capital Structure, Liquidity and Financial Resources](index=18&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) Net assets were 199.40 million HKD, with a working capital surplus of 125.10 million HKD, all borrowings repaid, and exposure to exchange rate risk without hedging - As of June 30, 2025, the Group's net assets were **199.40 million HKD**, with a working capital surplus of **125.10 million HKD**[49](index=49&type=chunk) Cash and Cash Equivalents (As of June 30) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Restricted bank cash | 37,730 | 37,550 | | Cash and cash equivalents | 15,140 | 25,830 | | **Total** | **52,870** | **63,370** | Summary of Cash Flows (Six Months Ended June 30) | Cash Flow Category | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Net cash used in operating activities | (1,446) | (1,865) | | Net cash from investing activities | 1,062 | 7,510 | | Net cash used in financing activities | (11,111) | (6,651) | | Net decrease in cash and cash equivalents | (11,495) | (1,006) | | Cash and cash equivalents at end of period | 15,139 | 10,911 | - The Group has **fully repaid all borrowings** and had **no borrowings** as of June 30, 2025, thus **no gearing ratio** is presented[53](index=53&type=chunk) - The Group primarily faces **exchange rate fluctuation risk** and currently has **no hedging policy** in place[54](index=54&type=chunk) [Capital Expenditure and Commitments](index=20&type=section&id=Capital%20Expenditure%20and%20Commitments) Total capital expenditure was 60 thousand HKD for property, plant, and equipment, with no capital commitments as of June 30, 2025 - During the reporting period, the Group's total capital expenditure was approximately **60 thousand HKD**, primarily for the acquisition of **property, plant, and equipment**[55](index=55&type=chunk) - As of June 30, 2025, the Group had **no capital commitments**[55](index=55&type=chunk) [Pledged Assets](index=20&type=section&id=Pledged%20Assets) The Group pledged cash deposits of 37.73 million HKD for bills payable and performance bonds, all denominated in RMB - The Group pledged cash deposits of approximately **37.73 million HKD**, with **35.05 million HKD** for bills payable and **1.61 million HKD** as performance bond deposits[56](index=56&type=chunk) - All pledged cash deposits are denominated in **RMB**[56](index=56&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) The Group had no contingent liabilities as of June 30, 2025, and December 31, 2024 - The Group had **no contingent liabilities** at the end of the reporting period[57](index=57&type=chunk) [Significant Acquisitions and Disposals](index=20&type=section&id=Significant%20Acquisitions%20and%20Disposals) The Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - The Group had **no significant acquisitions or disposals** of subsidiaries, associates, or joint ventures during the reporting period[58](index=58&type=chunk) [Major Investment Activities](index=20&type=section&id=Major%20Investment%20Activities) The Group had no major investment activities during the reporting period - The Group had **no major investment activities** during the reporting period[59](index=59&type=chunk) [Future Outlook and Prospects](index=20&type=section&id=Future%20Outlook%20and%20Prospects) Despite slight improvements, the 2025 outlook remains challenging, prompting the Group to strengthen existing businesses and pursue concentric diversification for new revenue streams - While **cigarette packaging** and **environmental governance** businesses showed slight improvement, the outlook for **2025 remains challenging**[60](index=60&type=chunk) - The **cigarette packaging business** will continue to strengthen existing customer relationships and seek new clients to **expand market share**[60](index=60&type=chunk) - The **environmental governance business** faces challenges, with **limited opportunities** for new ecological restoration projects, requiring close monitoring and **timely strategy adjustments**[60](index=60&type=chunk) - The Group will pursue a **concentric diversification strategy**, actively seeking **new business opportunities** to **broaden revenue streams**[61](index=61&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) This section covers human resources, corporate governance compliance, securities transactions, interim results review, and publication details [Human Resources](index=21&type=section&id=Human%20Resources) The Group employed 250 full-time staff with total remuneration of 15.37 million HKD, offering competitive compensation and benefits reviewed periodically - As of June 30, 2025, the Group employed **250 full-time employees** in China and Hong Kong (December 31, 2024: 258 employees)[62](index=62&type=chunk) - Total staff costs for the reporting period were **15.37 million HKD** (same period in 2024: 15.68 million HKD)[62](index=62&type=chunk) - The Group offers **competitive remuneration packages**, determined by employee performance, qualifications, and experience, along with benefits such as social insurance, provident funds, and discretionary bonuses[62](index=62&type=chunk) [Compliance with Corporate Governance Practices](index=21&type=section&id=Compliance%20with%20Corporate%20Governance%20Practices) The company adheres to the Corporate Governance Code, with explanations provided for deviations such as combined Chairman/CEO roles and fewer board meetings - The Company has adopted and applied the **Corporate Governance Code** set out in Appendix C1 Part 2 of the Listing Rules[63](index=63&type=chunk) - Mr. Zheng Yisheng serves concurrently as the **Chairman of the Board and Chief Executive Officer** of the Group, an arrangement the Board believes **does not lead to an imbalance of power**[64](index=64&type=chunk) - The Board held only **one regular meeting** during the reporting period, **falling short** of the minimum of four meetings per year required by Code Provision C.2.1, but **deemed quarterly meetings unnecessary**[65](index=65&type=chunk) - Management **did not submit monthly reports** to all Board members as required by Code Provision D.1.2, but provides **regular updates and information on significant changes**[66](index=66&type=chunk) [Purchase, Sale and Redemption of Company Securities](index=22&type=section&id=Purchase%2C%20Sale%20and%20Redemption%20of%20Company%20Securities) Neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the reporting period - Neither the Company nor any of its subsidiaries **purchased, redeemed, or sold** any of the Company's listed securities during the reporting period[67](index=67&type=chunk) [Review of Interim Results](index=22&type=section&id=Review%20of%20Interim%20Results) The Company's audit committee has reviewed the Group's interim results for the reporting period - The Company's **audit committee** has reviewed the Group's **interim results** for the reporting period[68](index=68&type=chunk) [Publication of Interim Results and Interim Report](index=23&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement is published on the company and Stock Exchange websites, with the full interim report to be dispatched to shareholders - This interim results announcement has been published on the **Company's website** (www.huaxihds.com.hk) and the **Stock Exchange's website** (www.hkexnews.hk)[69](index=69&type=chunk) - The Company's interim report, containing all information required by the Listing Rules, will be **dispatched to shareholders** in due course and made available on the aforementioned websites[69](index=69&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之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 上海大眾公用事業（集團）股份有限公司 Shanghai Dazhong Public Utilities (Group) Co., Ltd.* （於中華人民共和國註冊成立的股份有限公司） （股份代號：1635） 截至2025年6月30日止六個月之中期業績及2024年年度報告的 補充信息的公告 上海大眾公用事業（集團）股份有限公司（「本公司」）董事會欣然宣佈本公司及其附屬公 司截至2025年6月30日止六個月的未經審計中期業績。本公告列載本公司2025年中期報 告全文，並符合香港聯合交易所有限公司證券上市規則中有關中期業績初步公告附載 的資料的要求。本公司2025年中期報告將於2025年9月於香港交易及結算所有限公司披 露易網站www.hkexnews.hk及本公司的網站www.dzug.cn刊載，並按本公司H股股東 （「H股股東」）選擇收取通訊方式寄發予H股股東。 承董事會命 上海大眾公用事業（集團）股 ...

Report Overview [Company Information and Disclaimer](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%85%8D%E8%B4%A3%E5%A3%B0%E6%98%8E) PinChuang Holdings Limited's H1 2025 interim report emphasizes GEM listing risks, with directors responsible for accuracy - PinChuang Holdings Limited (Stock Code: 8066) released its interim report for the six months ended June 30, 2025[1](index=1&type=chunk) - The GEM market is characterized by higher investment risks, with small and medium-sized companies listed, and securities potentially subject to greater market volatility risks[1](index=1&type=chunk) - All company directors assume full responsibility for the accuracy, completeness, and non-misleading nature of the information contained in the report[2](index=2&type=chunk) [Performance Summary](index=2&type=section&id=%E6%A6%82%E8%A6%81) H1 2025 revenue and profit surged, turning losses into profits from new e-commerce and AI, no interim dividend recommended Key Financial Highlights for H1 2025 | Metric | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 88,096,000 | 21,628,000 | 307.3% | | Profit/(Loss) Attributable to Owners of the Company | 40,400,000 | (3,049,000) | Turned to Profit | - Revenue growth primarily driven by the launch of new e-commerce and artificial intelligence businesses[3](index=3&type=chunk) - The Board does not recommend the payment of an interim dividend (2024: nil)[3](index=3&type=chunk) Unaudited Interim Results [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For H1 2025, revenue surged by **307.3%** to **HKD 88.1 million**, gross profit by **920.5%** to **HKD 67.0 million**, achieving a **HKD 40.4 million** profit from a prior loss, with basic EPS at **7.542 HK cents** Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 88,096,187 | 21,628,172 | +307.3% | | Cost of sales | (21,047,112) | (15,061,348) | +39.7% | | Gross profit | 67,049,075 | 6,566,824 | +920.5% | | Profit/(Loss) before income tax | 52,940,658 | (3,050,402) | Turned to Profit | | Profit/(Loss) for the period | 40,398,451 | (3,050,402) | Turned to Profit | | Basic earnings/(loss) per share attributable to owners of the Company (HK cents) | 7.542 | (0.580) | Turned to Profit | - Net other gains turned from a loss of **HKD 593,541** in the prior period to a gain of **HKD 544,905**[4](index=4&type=chunk) - Income tax expense of **HKD 12,542,207** was incurred in H1 2025, compared to nil in the prior period[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets significantly increased to **HKD 127.8 million**, with cash and cash equivalents rising to **HKD 53.5 million**, and net assets growing to **HKD 98.8 million** due to convertible bond conversion and period profit Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 54,386,788 | 47,338,871 | +14.9% | | Current assets | 73,399,346 | 30,795,215 | +138.4% | | Current liabilities | 27,674,976 | 19,174,764 | +44.3% | | Net current assets | 45,724,370 | 11,620,451 | +293.5% | | Net assets | 98,806,569 | 40,924,626 | +141.4% | | Cash and cash equivalents | 53,530,994 | 13,822,703 | +287.3% | | Intangible assets | 14,254,274 | 4,706,589 | +202.9% | | Convertible bonds (non-current liabilities) | – | 16,540,273 | -100% (Converted) | - Intangible assets significantly increased, reflecting the company's investment in new businesses such as AI technology[7](index=7&type=chunk) - Convertible bonds were fully converted during the period, leading to a significant reduction in non-current liabilities[8](index=8&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, equity attributable to owners increased from **HKD 40.2 million** on January 1, 2024, to **HKD 98.6 million**, primarily due to convertible bond conversion to equity and profit for the period Summary of Condensed Consolidated Statement of Changes in Equity | Metric | June 30, 2025 (HKD) | January 1, 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 98,579,305 | 40,210,303 | +145.1% | | Share Capital | 116,069,500 | 105,069,500 | +10.5% | | Accumulated Losses | (414,592,420) | (455,444,932) | Losses Reduced | - Convertible bond conversion led to an increase in share capital of **HKD 11,000,000**[9](index=9&type=chunk) - Profit for the period of **HKD 40,399,551** significantly improved accumulated losses[9](index=9&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash from operating activities significantly increased to **HKD 52.6 million**, net cash used in investing activities increased, and net cash from financing activities shifted from inflow to outflow, with cash and cash equivalents rising to **HKD 53.5 million** at period-end Summary of Condensed Consolidated Statement of Cash Flows | Metric | H1 2025 (HKD) | H1 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 52,598,901 | 631,624 | +8226.7% | | Net cash used in investing activities | (11,705,675) | (5,122,468) | +128.5% | | Net cash (used in)/from financing activities | (1,739,126) | 4,013,397 | Shifted from Inflow to Outflow | | Net increase/(decrease) in cash and cash equivalents | 39,154,100 | (477,447) | Turned to Increase | | Cash and cash equivalents at end of period | 53,530,994 | 6,554,583 | +716.7% | - Operating cash flow significantly improved, reflecting the profitability of new businesses[10](index=10&type=chunk) - Increased cash outflow from investing activities may be related to capital investments in new businesses[10](index=10&type=chunk) Notes to the Unaudited Condensed Consolidated Financial Statements [Basis of Preparation](index=9&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The unaudited condensed consolidated financial statements are prepared in accordance with HKFRS and GEM Listing Rules, using the historical cost convention, except for television program investments measured at fair value, with no significant impact expected from new standards - Financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the GEM Listing Rules, and presented in Hong Kong Dollars[11](index=11&type=chunk)[12](index=12&type=chunk) - The historical cost convention is adopted, except for investments in television programs which are measured at fair value[14](index=14&type=chunk) - Directors anticipate that the adoption of new and revised HKFRSs will not have a significant impact on the financial statements[12](index=12&type=chunk) [Segment Information](index=9&type=section&id=2.%20%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group comprises six operating segments: smart card sales, private domain e-commerce, AI voice technology data services, financial consulting, scrap metal sales, and media entertainment, each managed independently with allocated revenue and expenses - The Group consists of six operating segments: sales of smart cards and smart card application systems, operation of private domain e-commerce platforms, provision of artificial intelligence voice technology data services, financial and management consultancy services, scrap metal sales and trading, and media and entertainment[15](index=15&type=chunk) - Each operating segment is managed independently, with revenue and expenses allocated based on their generation and incurrence by the segment[16](index=16&type=chunk) - Segment assets and liabilities exclude assets and liabilities not directly attributable to the operating segment's business activities or managed on a collective basis[16](index=16&type=chunk) [Operating Segments](index=9&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E) Operating segments are reported based on internal reports reviewed by the chief operating decision maker (executive directors) for resource allocation and performance assessment - Operating segments are reported based on internal reports reviewed by the chief operating decision maker (executive directors) for resource allocation and performance assessment[15](index=15&type=chunk) - The Group's major product and service categories determine the composition of its businesses[15](index=15&type=chunk) [Segment Revenue, Results, Assets and Liabilities](index=10&type=section&id=%E5%88%86%E9%A1%9E%E6%94%B6%E5%85%A5%E3%80%81%E5%88%86%E9%A1%9E%E6%A5%AD%E7%B8%BE%E3%80%81%E5%88%86%E9%A1%9E%E8%B3%87%E7%94%A2%E5%8F%8A%E5%88%86%E9%A1%9E%E8%B2%A0%E5%82%B5) In H1 2025, private domain e-commerce and AI voice technology data services contributed most new revenue and profit, smart card business revenue also grew, while scrap metal sales and media & entertainment segments still recorded losses or lower profits H1 2025 Reportable Segment Revenue and Profit | Segment | Revenue (HKD) | Profit/(Loss) (HKD) | | :--- | :--- | :--- | | Sales of smart cards and smart card application systems | 27,179,313 | 2,846,761 | | Operation of private domain e-commerce platform | 54,936,874 | 49,849,509 | | Provision of artificial intelligence voice technology data services | 5,980,000 | 5,772,930 | | Scrap metal sales and trading | – | (1,681,427) | | Media and entertainment | – | (2,500) | | **Consolidated Total** | **88,096,187** | **56,785,273** | June 30, 2025 Reportable Segment Assets and Liabilities | Segment | Assets (HKD) | Liabilities (HKD) | | :--- | :--- | :--- | | Sales of smart cards and smart card application systems | 20,734,046 | 11,049,746 | | Operation of private domain e-commerce platform | 6,367,941 | 14,601,867 | | Provision of artificial intelligence voice technology data services | 10,640,523 | 6,000 | | Media and entertainment | 32,459,016 | – | | **Consolidated Total Assets** | **127,786,134** | | | **Consolidated Total Liabilities** | | **28,979,565** | - In H1 2024, revenue primarily came from sales of smart cards and smart card application systems (**HKD 21,628,172**), with no revenue from private domain e-commerce and AI voice technology services[18](index=18&type=chunk) [Revenue](index=12&type=section&id=3.%20%E6%94%B6%E5%85%A5) In H1 2025, the company's revenue primarily stemmed from private domain e-commerce platform operations (**HKD 54.9 million**), smart card and application system sales (**HKD 27.2 million**), and AI voice technology data services (**HKD 6.0 million**) H1 2025 Revenue Sources | Revenue Source | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Sales of smart cards and smart card application systems | 27,179,313 | 21,628,172 | | Operation of private domain e-commerce platform | 54,936,874 | – | | Provision of artificial intelligence voice technology data services | 5,980,000 | – | | **Total Revenue** | **88,096,187** | **21,628,172** | - Private domain e-commerce platform operations and AI voice technology data services were new revenue sources in H1 2025[20](index=20&type=chunk) [Other Income](index=13&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income increased to **HKD 160,669** in H1 2025, primarily comprising miscellaneous income and bank interest income Other Income Details | Income Type | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Bank interest income | 8,998 | 3,105 | | Miscellaneous income | 151,671 | 79,545 | | **Total** | **160,669** | **82,650** | [Other Gains/(Losses), Net](index=13&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89%EF%BC%8C%E6%B7%A8%E9%A1%8D) Net other gains were **HKD 544,905** in H1 2025, compared to a loss of **HKD 593,541** in the prior period, mainly influenced by exchange gains/losses Other Gains/(Losses), Net | Metric | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Net exchange gains/(losses) | 544,905 | (593,541) | [Finance Costs](index=13&type=section&id=6.%20%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) Finance costs increased to **HKD 433,705** in H1 2025, primarily due to convertible bond interest expenses of **HKD 355,505** Finance Costs Details | Expense Type | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Interest expense on lease liabilities | 78,200 | 121,492 | | Interest expense on convertible bonds | 355,505 | – | | **Total** | **433,705** | **121,492** | [Profit/(Loss) Before Income Tax](index=13&type=section&id=7.%20%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Profit/(Loss) before income tax is stated after deducting costs such as inventories and depreciation Profit/(Loss) Before Income Tax Deductions | Item | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 21,047,112 | 15,061,348 | | Depreciation – property, plant and equipment | 888,790 | 1,114,217 | | Depreciation – right-of-use assets | 1,649,215 | 1,662,392 | [Income Tax Expense](index=14&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for H1 2025 was **HKD 12,542,207**, primarily from China enterprise income tax, with no tax expense in the prior period and no taxable profits in Hong Kong, Cayman Islands, BVI, or Taiwan Income Tax Expense | Metric | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Income tax expense | 12,542,207 | – | - No provision for Hong Kong profits tax was made due to sufficient tax losses available for offset[25](index=25&type=chunk) - China enterprise income tax is calculated at a rate of **25%**, with taxable profits generated in H1 2025[26](index=26&type=chunk) [Dividends](index=14&type=section&id=9.%20%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for H1 2025 (2024: nil)[28](index=28&type=chunk) [Earnings/(Loss) Per Share](index=15&type=section&id=10.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Basic earnings per share for H1 2025 were **7.542 HK cents**, compared to a loss of **0.580 HK cents** in the prior period, with diluted earnings per share at **7.023 HK cents** Earnings/(Loss) Per Share | Metric | H1 2025 (HK cents) | H1 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 7.542 | (0.580) | | Diluted earnings/(loss) per share | 7.023 | (0.580) | - The weighted average number of ordinary shares used to calculate basic earnings per share increased due to the conversion of convertible bonds[29](index=29&type=chunk) - In H1 2024, unexercised share options had an anti-dilutive effect on basic earnings per share, thus diluted loss per share was the same as basic loss per share[29](index=29&type=chunk) [Property, Plant and Equipment](index=16&type=section&id=11.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) In H1 2025, the Group acquired approximately **HKD 1.37 million** in property, plant and equipment, a decrease from **HKD 3 million** in the prior period Property, Plant and Equipment Acquisitions | Item | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Acquisitions of property, plant and equipment | 1,370,000 | 3,000,000 | [Investment in Television Programme](index=16&type=section&id=12.%20%E6%96%BC%E9%9B%BB%E8%A6%96%E7%AF%80%E7%9B%AE%E4%B9%8B%E6%8A%95%E8%B3%87) As of June 30, 2025, the company's investment in the television program "Snow Leopard II" remained at **HKD 32.46 million**, with expected release in mid-2026 and profit distribution by Q3 2026, measured at fair value (Level 3) Television Programme Investment Balance | Metric | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Investment in television programme | 32,459,016 | 31,663,113 | - The television program "Snow Leopard II" is expected to be released in China by mid-2026, with net profit distribution anticipated by the end of Q3 2026[31](index=31&type=chunk) - The investment is measured at fair value (Level 3), using a discounted cash flow valuation technique, with key unobservable inputs including a discount rate of **21.29%** and estimated television program revenue of **RMB 210,000,000**[32](index=32&type=chunk)[34](index=34&type=chunk)[36](index=36&type=chunk) [Inventories](index=17&type=section&id=13.%20%E5%AD%98%E8%B2%A8) As of June 30, 2025, total inventories decreased to **HKD 1.62 million** from **HKD 2.10 million** on December 31, 2024, primarily due to reductions in finished goods and raw materials Inventory Composition | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Raw materials | 347,378 | 570,933 | | Work in progress | 1,266,857 | 396,825 | | Finished goods | 7,075 | 1,136,396 | | **Total** | **1,621,310** | **2,104,154** | [Trade and Other Receivables, Deposits and Prepayments](index=17&type=section&id=14.%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables amounted to **HKD 18.87 million**, with trade receivables at **HKD 10.83 million**, primarily concentrated within 30 days aging Trade and Other Receivables | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Trade receivables | 10,833,526 | 10,386,299 | | Other receivables, deposits and prepayments | 8,038,844 | 8,134,845 | | **Total** | **18,872,370** | **18,521,144** | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | 0 to 30 days | 10,828,626 | 3,002,212 | | 31 to 90 days | 4,900 | 7,260,739 | | Over 90 days | – | 123,348 | [Trade and Other Payables](index=18&type=section&id=15.%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables decreased to **HKD 12.97 million** from **HKD 16.37 million** on December 31, 2024, with trade payables primarily concentrated within 30 days aging Trade and Other Payables | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Trade payables | 5,219,768 | 7,392,585 | | Other payables and accrued charges | 7,747,644 | 8,978,190 | | **Total** | **12,967,412** | **16,370,775** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | 0 to 30 days | 2,890,718 | 1,179,900 | | 31 to 60 days | 1,296,843 | 1,936,419 | | 61 to 90 days | 301,131 | 2,198,257 | | Over 90 days | 731,076 | 2,078,009 | [Convertible Bonds](index=18&type=section&id=16.%20%E5%8F%AF%E6%8F%9B%E8%82%A1%E5%82%B5%E5%88%B8) Convertible bonds with a principal amount of **HKD 16.5 million** were fully converted into company shares on May 28, 2025, resulting in a zero balance at period-end - Unsecured convertible bonds with a principal amount of **HKD 16,500,000** were issued to Mr. Kwok Yung Cheung on September 3, 2024, at an annual interest rate of **5%**[39](index=39&type=chunk) - On May 28, 2025, Mr. Kwok fully converted the convertible bonds, resulting in the issuance of **55,000,000** shares at **HKD 0.30** per share[40](index=40&type=chunk) Convertible Bond Movements | Item | HKD | | :--- | :--- | | Balance at December 31, 2024 and January 1, 2025 (liability component) | 16,540,273 | | Conversion | (16,895,778) | | Balance at June 30, 2025 (liability component) | – | [Share Capital](index=19&type=section&id=17.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's issued share capital increased to **HKD 116.07 million** due to convertible bond conversion, with total shares rising to **580,347,500** Share Capital Movements | Item | Number of Shares | Par Value (HKD) | | :--- | :--- | :--- | | Ordinary shares issued at January 1, 2025 | 525,347,500 | 105,069,500 | | Conversion (Note 16) | 55,000,000 | 11,000,000 | | **Ordinary shares issued at June 30, 2025** | **580,347,500** | **116,069,500** | Management Discussion and Analysis [Business Overview and Strategies](index=20&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E6%B3%81%E5%92%8C%E7%AD%96%E7%95%A5) The Group is committed to consolidating its core smart card business and diversifying through strategic expansion into e-commerce and AI technology services, with new businesses driving significant revenue growth while existing operations remain stable - The Group strategically expanded into targeted e-commerce services and high-end AI technology services while focusing on its core smart card expertise[29](index=29&type=chunk)[51](index=51&type=chunk)[62](index=62&type=chunk) - The existing smart card business remains one of the main revenue drivers and will continue to operate at its current scale, with no intention of reduction, cessation, or disposal[51](index=51&type=chunk) - The addition of e-commerce business in 2024 represents strategic diversification, enhancing the Group's revenue streams through synergies with existing technological capabilities[51](index=51&type=chunk) [Sales of Smart Cards and Smart Card Application Systems](index=20&type=section&id=%E6%99%BA%E8%83%BD%E5%8D%A1%E5%8F%8A%E6%99%BA%E8%83%BD%E5%8D%A1%E6%87%89%E7%94%A8%E7%B3%BB%E7%B5%B1%E9%8A%B7%E5%94%AE) The smart card business, a core revenue source, focuses on SIM card production, manufacturing, and global trade with large-scale capacity, operating a "global + domestic" dual-driven model and investing in eSIM and new factories for enhanced competitiveness - The smart card business is a primary revenue source for the Group, focusing on the production, manufacturing, and global trade of telecom SIM cards, with an annual production capacity exceeding **300 million** cards[42](index=42&type=chunk) - A "global + domestic" dual-driven business model has been established, collaborating with international clients like IDEMIA, VALID, G&D, and domestic clients such as Hengbao Co., Ltd., Wango Smart, and Shenzhen Zhida Smart[42](index=42&type=chunk)[43](index=43&type=chunk)[46](index=46&type=chunk) - Continuous investment in a new Shenzhen factory aims to meet Global System for Mobile Communications Association Security Accreditation Scheme (SAS) standards and enhance competitiveness in the eSIM sector[44](index=44&type=chunk) [Scrap Metal Sales and Trading](index=21&type=section&id=%E5%BB%A2%E9%87%91%E5%B1%AC%E9%8A%B7%E5%94%AE%E5%92%8C%E4%BA%A4%E6%98%93) The scrap metal sales and trading business has been suspended, with the company adopting a wait-and-see approach, planning to gradually resume operations once global economic recovery and stability become clear - The scrap metal sales and trading business has been suspended, and the company will gradually resume operations once global economic recovery and stability become clear[45](index=45&type=chunk) [Provision of Financial and Management Consultancy Services](index=22&type=section&id=%E9%87%91%E8%9E%8D%E5%92%8C%E7%AE%A1%E7%90%86%E5%92%A8%E8%A9%A2%E6%9C%8D%E5%8B%99%E6%8F%90%E4%BE%9B) Financial and management consultancy services have not generated revenue since Q3 2016, but the company remains open to re-engaging in this area when suitable opportunities arise - Financial and management consultancy services have not generated revenue since Q3 2016, but the company remains open to re-engaging in this area when suitable opportunities arise[47](index=47&type=chunk) [Investment in Media and Entertainment Industry](index=22&type=section&id=%E5%AA%92%E9%AB%94%E5%92%8C%E5%A8%9B%E6%A8%82%E8%A1%8C%E6%A5%AD%E6%8A%95%E8%B3%87) The company's invested TV series "Snow Leopard II" is expected to be released in Q1 2026, with revenue sharing anticipated in Q3 2026, and the company currently prioritizes realizing returns from this series - The invested TV series "Snow Leopard II" is expected to be released in Q1 2026, with revenue sharing anticipated in Q3 2026[48](index=48&type=chunk) - The company will seek similar investments in the future but currently prioritizes realizing returns from the TV series[48](index=48&type=chunk) [E-commerce Business Expansion](index=22&type=section&id=%E9%9B%BB%E5%AD%90%E5%95%86%E5%8B%99%E6%A5%AD%E5%8B%99) The company successfully entered the e-commerce market by acquiring full equity in Dongchuang, following previous unsuccessful attempts to acquire other target companies, with Dongchuang's user ecosystem synergizing with Cyber Fantasy's AI voice technology - The company successfully completed the acquisition of full equity in Dongchuang in December 2024, entering the e-commerce business[50](index=50&type=chunk) - Dongchuang's platform has over **200,000** registered users, and its user ecosystem provides voice data material for Cyber Fantasy's AI voice technology, forming a unique customized voice data collection platform[51](index=51&type=chunk) - Previous attempts to acquire Hangzhou Baishike Intelligent Technology Co., Ltd. and Hangzhou Dapin Weiyang Technology Co., Ltd. were unsuccessful[49](index=49&type=chunk)[50](index=50&type=chunk) [E-commerce Business Model and Initial Financial Performance Explanation](index=23&type=section&id=%E9%9B%BB%E5%AD%90%E5%95%86%E5%8B%99%E6%A5%AD%E5%8B%99%E7%9A%84%E5%95%86%E6%A5%AD%E6%A8%A1%E5%BC%8F%E5%92%8C%E5%88%9D%E5%A7%8B%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE%E8%A7%A3%E8%AA%AA) The Group's e-commerce business, operated through Dongchuang and Cyber Fantasy, centers on commission-driven social commerce, integrating local lifestyle services, external e-commerce coupons, and self-operated mall sales, while Cyber Fantasy focuses on AI voice technology R&D and data services in synergy with Dongchuang - The e-commerce business is operated through wholly-owned subsidiaries Dongchuang and Cyber Fantasy[52](index=52&type=chunk) - Dongchuang's business model is centered on commission-driven social e-commerce, combined with national movie ticket booking, local lifestyle consumption discounts, and video streaming application membership distribution[53](index=53&type=chunk) - Cyber Fantasy focuses on AI voice technology R&D, including speech recognition, natural language processing, and speech synthesis, and develops proprietary voice algorithm technology[57](index=57&type=chunk) [Dongchuang Operating Model](index=23&type=section&id=%E5%8B%95%E5%89%B5%E9%81%8B%E7%87%9F%E6%A8%A1%E5%BC%8F) Dongchuang is a membership-based entertainment e-commerce platform launched in January 2025, generating revenue from tiered memberships, coupon transaction commissions, and self-operated mall sales, boasting over **200,000** registered users and leveraging IP resources and AI to enhance engagement - Dongchuang launched its public beta in January 2025 as a membership-based entertainment e-commerce platform focused on private domain traffic[53](index=53&type=chunk) - The revenue structure includes membership tiers (free registration, VIP members enjoy exclusive benefits), coupon transaction commissions (local lifestyle services and external e-commerce merchants), and sales revenue from the platform's self-operated mall[53](index=53&type=chunk)[54](index=54&type=chunk) - The platform has over **200,000** registered individual users, primarily acquired through WeChat Moments and WeChat group invitations[55](index=55&type=chunk) - Dongchuang boasts a strong market operations team of **45** employees, with core talents experienced in e-commerce, digital entertainment, and technology development[55](index=55&type=chunk)[56](index=56&type=chunk) [Cyber Fantasy AI Voice Technology](index=26&type=section&id=%E8%B3%BD%E5%8D%9A%E5%B9%BB%E5%A2%83) Cyber Fantasy focuses on AI voice technology R&D, developing proprietary voice algorithms and applying for national invention patents, with a core strategy of end-to-end management of voice technology training data, collaborating with Dongchuang to create a global leading emotion-annotated voice training database - Cyber Fantasy established an internal AI technology team in 2024, responsible for developing and advancing voice-related AI algorithms, including speech recognition, natural language processing, and speech synthesis, and applying for national invention patents[57](index=57&type=chunk) - Cyber Fantasy prioritizes end-to-end management of voice technology training data (collection, cleaning, annotation), offering personalized intelligent agent customization, customized speech recognition development, and agent training services using voice data[58](index=58&type=chunk) - Collaborating with Dongchuang, the platform efficiently publishes data collection tasks through the Dongchuang platform, leveraging user interactions to generate high-quality, customized voice AI training databases[59](index=59&type=chunk) - The strategic goal is to create a global leading emotion-annotated voice training database and develop speech recognition agents capable of detecting and responding to human emotions[59](index=59&type=chunk) [Reasons for Improved Financial Performance in 2025](index=29&type=section&id=2025%E5%B9%B4%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE%E7%9A%84%E6%94%B9%E5%96%84%E6%98%AF2024%E5%B9%B4%E6%88%B0%E7%95%A5%E8%BD%89%E5%9E%8B%E7%9A%84%E7%9B%B4%E6%8E%A5%E7%B5%90%E6%9E%9C) The improved financial performance in 2025 is a direct result of the 2024 strategic transformation, driven by a focus on core smart card business, strategic expansion into e-commerce and high-end AI technology services, and rapid user acquisition on the platform in Q2 2025 - The improved financial performance in 2025 is a direct result of the 2024 strategic transformation, focusing on core smart card expertise and strategically expanding into e-commerce and high-end AI technology services[62](index=62&type=chunk) - The platform achieved rapid user acquisition in Q2 2025, driving service adoption and revenue generation[62](index=62&type=chunk) - Cyber Fantasy's ability to develop proprietary AI voice technology, identifying customer demand for customized voice solutions, accelerated the development of unique AI voice algorithms and translated into customized projects for Hong Kong clients[63](index=63&type=chunk) [Financial Review](index=29&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed review of financial indicators for the reporting period, including revenue, cost of sales, gross profit, other income, other gains/losses, selling and distribution costs, administrative expenses, fair value changes of television program investments, finance costs, income tax expense, and non-controlling interests - Financial performance during the reporting period primarily stemmed from smart card contract manufacturing and sales, operation of private domain e-commerce platforms, and provision of artificial intelligence voice technology data services[64](index=64&type=chunk) [Revenue](index=29&type=section&id=%E6%94%B6%E5%85%A5) In H1 2025, private domain e-commerce platform operations contributed **HKD 54.94 million** in revenue, smart card sales revenue increased to **HKD 27.18 million** (**25.7%** Y-o-Y growth), and AI voice technology data services generated **HKD 5.98 million** Revenue Contribution by Business | Business | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operation of private domain e-commerce platform | 54,940,000 | – | New | | Sales of smart cards and smart card application systems | 27,180,000 | 21,630,000 | +25.7% | | Provision of artificial intelligence voice technology data services | 5,980,000 | – | New | [Cost of Sales and Gross Profit](index=30&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC%E5%8F%8A%E6%AF%9B%E5%88%A9) In H1 2025, private domain e-commerce platform operations incurred **HKD 3.32 million** in cost of sales, smart card sales **HKD 17.57 million** (**16.7%** Y-o-Y increase), and AI voice technology data services **HKD 0.16 million**, with gross profit significantly increasing by **920.5%** to **HKD 67.05 million** Cost of Sales by Business | Business | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operation of private domain e-commerce platform | 3,320,000 | – | New | | Sales of smart cards and smart card application systems | 17,570,000 | 15,060,000 | +16.7% | | Provision of artificial intelligence voice technology data services | 160,000 | – | New | Gross Profit | Metric | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 67,050,000 | 6,570,000 | +920.5% | [Other Income](index=31&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income increased to **HKD 160,669**, primarily comprising bank interest income and miscellaneous income Other Income Details | Income Type | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Bank interest income | 8,998 | 3,105 | | Miscellaneous income | 151,671 | 79,545 | | **Total** | **160,669** | **82,650** | [Other Gains/(Losses), Net](index=31&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%EF%BC%88%E虧%E6%90%8D%EF%BC%89%EF%BC%8C%E6%B7%A8%E9%A1%8D) Net other gains amounted to approximately **HKD 550,000**, mainly from exchange differences on the book balance of television program investments, partially offset by foreign currency transaction losses Other Gains/(Losses), Net | Metric | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Other gains/(losses), net | 550,000 | (590,000) | [Selling and Distribution Costs](index=31&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E6%88%90%E6%9C%AC) Selling and distribution costs increased to **HKD 1.05 million** (**5%** Y-o-Y increase), primarily due to higher transportation costs and sales commissions from increased smart card business revenue Selling and Distribution Costs | Metric | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Selling and distribution costs | 1,050,000 | 1,000,000 | +5% | - The increase was primarily due to higher transportation costs and sales commissions resulting from increased smart card business revenue, partially offset by a decrease in other selling expenses[74](index=74&type=chunk) [Administrative Expenses](index=31&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased to **HKD 13.33 million** (**22.4%** Y-o-Y increase), mainly due to administrative expenses incurred from new business operations, as well as higher legal and professional fees, salaries, and wages Administrative Expenses | Metric | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 13,330,000 | 10,890,000 | +22.4% | - The increase was primarily due to approximately **HKD 1.82 million** in administrative expenses incurred from new business operations, as well as higher legal and professional fees, salaries, and wages[75](index=75&type=chunk) [Fair Value Change of Investment in Television Programme](index=31&type=section&id=%E6%96%BC%E9%9B%BB%E8%A6%96%E7%AF%80%E7%9B%AE%E4%B9%8B%E6%8A%95%E8%B3%87%E4%B9%8B%E5%85%AC%E5%B9%B3%E5%80%BC%E8%AE%8A%E5%8B%95) No fair value gains or losses were recognized for television program investments in H1 2025, compared to a gain of approximately **HKD 2.9 million** in the prior period, with the expected revenue inflow timeline delayed by six months to Q3 2026 Fair Value Change of Investment in Television Programme | Metric | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Fair value gains/(losses) | – | 2,900,000 | - The expected timeline for television program revenue inflow has been delayed by six months to the end of Q3 2026[76](index=76&type=chunk) [Finance Costs](index=32&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) Finance costs increased to approximately **HKD 430,000**, primarily including interest expense on lease liabilities and convertible bonds Finance Costs | Metric | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Finance costs | 430,000 | 120,000 | [Income Tax Expense](index=32&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense of approximately **HKD 12.54 million** was recognized in H1 2025, mainly for profits generated by the private domain e-commerce platform Income Tax Expense | Metric | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Income tax expense | 12,540,000 | – | - Income tax expense was primarily for profits generated from the operation of the private domain e-commerce platform[78](index=78&type=chunk) [Non-controlling Interests](index=32&type=section&id=%E9%9D%9E%E6%8E%A7%E8%82%A1%E6%AC%8A%E7%9B%8A) Non-controlling interests' share of loss of **HKD 1,100** was recognized in H1 2025, consistent with the prior period Non-controlling Interests' Share of Loss | Metric | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Non-controlling interests' share of loss | 1,100 | 1,100 | Liquidity and Capital Structure [Liquidity and Financial Resources/Capital Structure](index=32&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E2%88%95%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) As of June 30, 2025, the Group's cash and bank balances significantly increased to **HKD 53.5 million**, with no outstanding long-term convertible bonds, and the current ratio rose to **2.65**, indicating substantial liquidity improvement Liquidity Position | Metric | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Cash and bank balances | 53,500,000 | 13,800,000 | | Outstanding long-term convertible bonds | – | 16,500,000 | | Current assets | 73,400,000 | 30,800,000 | | Current liabilities | 27,700,000 | 19,200,000 | | Current ratio | 2.65 | 1.6 | - Funding sources include cash, operating income, and proceeds from the issuance of convertible bonds[80](index=80&type=chunk) [Employee Information](index=33&type=section&id=%E5%83%B1%E5%93%A1%E8%B3%87%E6%96%99) As of June 30, 2025, the Group employed **137** staff, with approximately **36%** female and **29%** of senior management positions held by women, demonstrating a commitment to gender diversity, and employee costs were approximately **HKD 11.8 million** Employee Information | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total number of employees | 137 | 136 | | Percentage of female employees | Approx. 36% | | | Percentage of female senior management | Approx. 29% | | | Employee costs (H1 2025) | HKD 11,800,000 | HKD 11,000,000 (H1 2024) | - Remuneration is determined based on employee performance, experience, and industry conditions, with benefits including basic salary, Mandatory Provident Fund Scheme, medical scheme, and share options[81](index=81&type=chunk) [Material Investments and Acquisitions](index=33&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During the reporting period, the Group had no other material investments, significant acquisitions or disposals, or future plans for material investments, apart from those disclosed in the management discussion and analysis and notes to the financial statements - There were no other material investments, significant acquisitions or disposals, or future plans for material investments during the reporting period[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) [Capital Commitments and Gearing Ratio](index=33&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group had no assets pledged, a significantly reduced gearing ratio of **2.4%**, capital commitments of approximately **HKD 200,000**, and no significant contingent liabilities Capital Commitments and Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets pledged | Nil | Nil | | Gearing ratio | 2.4% | 26.3% | | Capital commitments (acquisition of property, plant and equipment) | HKD 200,000 | HKD 200,000 | | Significant contingent liabilities | Nil | | [Events After the Reporting Period](index=34&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) On July 21, 2025, the company granted **52,500,000** share options to certain employees, with an exercise price of **HKD 0.427** per share, a ten-year validity, and vesting upon achieving performance targets - On July 21, 2025, the company granted **52,500,000** share options to certain employees[89](index=89&type=chunk) - The share options have an exercise price of **HKD 0.427** per share, a ten-year validity, and will fully vest upon achieving performance targets determined by the Board[89](index=89&type=chunk) [Exposure to Exchange Rate Fluctuations](index=34&type=section&id=%E6%89%BF%E5%8F%97%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group faces exchange rate risks from television program investments and overseas sales and purchases, primarily involving RMB and USD, managing these risks by monitoring foreign currency cash flows and considering existing policies effective - The Group's currency risk exposure arises from investments in television programs and overseas sales and purchases, primarily denominated in RMB and USD[90](index=90&type=chunk) - The company manages risk by monitoring foreign currency cash flows, distinguishing between short-term and long-term foreign currency cash flows[90](index=90&type=chunk) Shareholders and Corporate Governance [Directors' and Chief Executive's Interests in Shares and Share Options](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E6%9C%AC%E5%8F%8A%E8%B3%BC%E8%82%A1%E6%AC%8A%E4%B9%8B%E6%AC%8A%E7%9B%8A) As of June 30, 2025, several directors held company shares and share options, with Mr. Kwok Yung Cheung holding **55,000,000** shares, representing **9.48%** of the issued share capital Directors' and Chief Executive's Shareholdings and Share Options | Director Name | Nature of Interest | Long/Short Position | Number of Company Shares | Number of Related Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Ms. Ng Yuk Kwan | Beneficial Owner | Long Position | 100,000 | 4,500,000 | 0.79% | | Mr. Kwok Yung Cheung | Beneficial Owner | Long Position | 55,000,000 | – | 9.48% | | Mr. Cheung Wai Man | Beneficial Owner | Long Position | 525,000 | 4,500,000 | 0.87% | | Mr. Yeung Mang Sau | Beneficial Owner | Long Position | 3,750,000 | 4,500,000 | 1.42% | | Mr. Chan Siu Wing | Beneficial Owner | Long Position | – | 450,000 | 0.08% | | Ms. Wong Ka Wai | Beneficial Owner | Long Position | – | 450,000 | 0.08% | - Related shares primarily refer to share options entitling the holder to subscribe for shares[92](index=92&type=chunk)[93](index=93&type=chunk) [Substantial Shareholders](index=36&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1) As of June 30, 2025, Mr. Choi Kei Yuen was a substantial shareholder, indirectly holding **24.02%** of the company's shares through Golden Dice Co., Ltd. and Best Heaven Limited Substantial Shareholders' Shareholdings | Shareholder Name | Type of Interest | Long/Short Position | Number of Shares | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | :--- | | Golden Dice Co., Ltd. | Beneficial | Long Position | 107,787,512 | 18.57% | | Best Heaven Limited | Beneficial | Long Position | 31,586,500 | 5.45% | | Mr. Choi Kei Yuen | Interest in Controlled Corporation | Long Position | 139,374,012 | 24.02% | - Mr. Choi Kei Yuen is deemed a substantial shareholder due to his **100%** beneficial ownership in Golden Dice Co., Ltd. and Best Heaven Limited[95](index=95&type=chunk) [Share Option Scheme](index=36&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A) The company adopted a new share option scheme to attract and retain talent, with the total not exceeding **10%** of issued shares; as of June 30, 2025, no options were granted under the new scheme, while directors and other employees held **37,179,250** options under the existing scheme at an exercise price of **HKD 0.20** - The new share option scheme aims to attract and retain talent, with the total number of options not exceeding **10%** of the total issued shares[96](index=96&type=chunk)[97](index=97&type=chunk) - Under the new share option scheme, the exercise price is the higher of the closing price on the grant date, the average closing price for the preceding five days, and the nominal value[97](index=97&type=chunk) - As of June 30, 2025, no share options were granted under the new share option scheme[99](index=99&type=chunk) Overview of Existing Share Option Scheme (as of June 30, 2025) | Participant Name | Number of Share Options | Date of Grant | Exercisable Period | Exercise Price (HKD) | Remaining Term | | :--- | :--- | :--- | :--- | :--- | :--- | | Ms. Ng Yuk Kwan | 4,500,000 | January 3, 2018 | January 3, 2018 to January 2, 2028 | 0.20 | Approx. 2.51 years | | Mr. Cheung Wai Man | 4,500,000 | January 3, 2018 | January 3, 2018 to January 2, 2028 | 0.20 | Approx. 2.51 years | | Mr. Yeung Mang Sau | 4,500,000 | January 3, 2018 | January 3, 2018 to January 2, 2028 | 0.20 | Approx. 2.51 years | | Mr. Chan Siu Wing | 450,000 | January 3, 2018 | January 3, 2018 to January 2, 2028 | 0.20 | Approx. 2.51 years | | Ms. Wong Ka Wai | 450,000 | January 3, 2018 | January 3, 2018 to January 2, 2028 | 0.20 | Approx. 2.51 years | | Other Employees | 22,779,250 | January 3, 2018 | January 3, 2018 to January 2, 2028 | 0.20 | Approx. 2.51 years | | **Total** | **37,179,250** | | | | | [Audit Committee](index=39&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors chaired by Ms. Wong Ka Wai, reviews financial, internal, and risk management controls and has confirmed the interim results comply with accounting standards - The Audit Committee comprises three independent non-executive directors, with Ms. Wong Ka Wai as the chairperson[101](index=101&type=chunk) - Its primary responsibilities include reviewing financial controls, internal controls, and risk management systems, as well as reviewing financial statements[101](index=101&type=chunk) - The Audit Committee has reviewed the interim results and found them to be prepared in compliance with applicable accounting standards and requirements, with sufficient disclosures made[101](index=101&type=chunk) [Compliance with Corporate Governance Code](index=39&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with all Corporate Governance Code provisions during the reporting period, except for the separation of Chairman and CEO functions; to address business expansion, Ms. Ng Yuk Kwan resigned as CEO, succeeded by Mr. Cheung Wai Man, while Ms. Ng remains Board Chairman - The company has complied with all code provisions of the Corporate Governance Code during the reporting period[102](index=102&type=chunk) - A deviation from code provision C.2.1 (separation of Chairman and Chief Executive Officer functions) existed due to the company's small size and internal control systems[102](index=102&type=chunk)[103](index=103&type=chunk) - To address business expansion, Ms. Ng Yuk Kwan resigned as Chief Executive Officer but continues as Chairman of the Board; Mr. Cheung Wai Man was appointed as Chief Executive Officer[103](index=103&type=chunk) [Directors' Securities Transactions](index=40&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The company adopted a code of conduct for directors' securities transactions no less exacting than the GEM Listing Rules, and all directors complied with it during the reporting period - The company has adopted a code of conduct for directors' securities transactions no less exacting than the GEM Listing Rules[104](index=104&type=chunk) - All directors complied with the code of conduct and required standards for such transactions during the reporting period[104](index=104&type=chunk) [Competing Interests](index=40&type=section&id=%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A) As of June 30, 2025, no directors, management shareholders, or their associates had any interests that directly or indirectly competed with the Group's business - As of June 30, 2025, no directors, management shareholders, or their associates had any interests that directly or indirectly competed with the Group's business[105](index=105&type=chunk) [Purchase, Sale or Redemption of Securities](index=40&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities[106](index=106&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, profit declined despite revenue growth, while the financial position improved with reduced debt Financial Highlights for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 244,426 | 208,203 | +17.40% | | Operating Profit | 51,818 | 69,574 | -25.52% | | Profit Attributable to Equity Holders of the Company | 12,073 | 36,837 | -67.23% | | Basic Earnings Per Share | RMB 0.026 | RMB 0.080 | -67.50% | | Interim Dividend Per Share | Nil | Nil | 0% | Financial Position Highlights as of June 30, 2025 | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,428,632 | 1,914,880 | -25.39% | | Total Equity Attributable to Equity Holders of the Company | 880,859 | 876,280 | +0.52% | | Net Asset Value Per Share | RMB 1.92 | RMB 1.91 | +0.52% | | Net Debt | 174,164 | 718,317 | -75.75% | | Total Capital | 1,055,023 | 1,594,597 | -33.84% | | Gearing Ratio | 16.51% | 45.05% | -63.35% | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial performance and position, including profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue increased by 17.40% to RMB 244,426 thousand, but operating profit decreased by 25.52% to RMB 51,818 thousand, mainly due to higher fuel consumption and a loss on subsidiary disposal Key Data from Consolidated Statement of Profit or Loss | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 244,426 | 208,203 | | Fuel Consumption | (112,576) | (54,834) | | Depreciation and Amortization | (41,414) | (46,621) | | Operating Profit | 51,818 | 69,574 | | Net Finance Costs | (13,132) | (15,562) | | Loss on Disposal of a Subsidiary | (8,260) | – | | Profit Before Tax | 33,059 | 54,551 | | Income Tax | (20,986) | (17,716) | | Profit for the Period | 12,073 | 36,835 | | Profit Attributable to Equity Holders of the Company | 12,073 | 36,837 | | Basic Earnings Per Share (RMB) | 0.026 | 0.080 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Total comprehensive income significantly decreased to RMB 12,497 thousand for the six months ended June 30, 2025, mainly due to lower profit and exchange differences Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 12,073 | 36,835 | | Exchange Differences on Translation of the Company's Financial Statements | (2,190) | 1,067 | | Exchange Differences on Translation of Overseas Subsidiaries' Financial Statements | 2,614 | (938) | | Total Comprehensive Income for the Period | 12,497 | 36,964 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 12,497 | 36,966 | [Consolidated Statement of Financial Position](index=6&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased by 25.39% to RMB 1,428,632 thousand, mainly due to reduced property, plant, and equipment, while net current assets turned positive, indicating improved liquidity Key Data from Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 935,675 | 1,643,479 | | Interests in an Associate | 139,039 | – | | Total Non-current Assets | 1,087,155 | 1,681,378 | | **Current Assets** | | | | Cash and Cash Equivalents | 246,947 | 114,458 | | Total Current Assets | 341,477 | 233,502 | | **Current Liabilities** | | | | Interest-Bearing Borrowings | 80,205 | 179,713 | | Total Current Liabilities | 309,267 | 463,094 | | Net Current Assets/(Liabilities) | 32,210 | (229,592) | | **Non-current Liabilities** | | | | Interest-Bearing Borrowings | 220,064 | 532,793 | | Total Non-current Liabilities | 238,506 | 575,506 | | **Net Assets** | **880,859** | **876,280** | | Total Equity Attributable to Equity Holders of the Company | 880,859 | 876,280 | [Notes to the Unaudited Interim Financial Information](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Information) This section details the basis of preparation, accounting policy changes, subsidiary disposal, revenue, profit before tax, income tax, earnings per share, and other key financial items [1 Basis of Preparation](index=8&type=section&id=1%20Basis%20of%20Preparation) The interim financial information is prepared in accordance with HKEX Listing Rules and IAS 34, authorized for issue on August 29, 2025, and reviewed by the Audit Committee, though not audited - The interim financial information is prepared in accordance with the HKEX Listing Rules and International Accounting Standard 34, and was authorized for issue on August 29, 2025[10](index=10&type=chunk) - The interim financial information is unaudited but has been reviewed by the Company's Audit Committee[11](index=11&type=chunk) [2 Changes in Accounting Policies](index=9&type=section&id=2%20Changes%20in%20Accounting%20Policies) The Group adopted IFRS 21 amendments, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," with no material impact due to the absence of non-exchangeable foreign currency transactions, and no other new standards were applied - The Group has applied the amendments to IFRS 21, but it has no material impact due to the absence of non-exchangeable foreign currency transactions[12](index=12&type=chunk) - No other new standards or interpretations not yet effective have been applied in the current accounting period[13](index=13&type=chunk) [3 Disposal of a Subsidiary](index=9&type=section&id=3%20Disposal%20of%20a%20Subsidiary) On May 30, 2025, the company disposed of a 51% equity interest in Zhejiang Puxing Deneng Natural Gas Power Generation Co., Ltd. and its subsidiary for RMB 142.7 million, recognizing a loss of RMB 8,260 thousand - On May 30, 2025, the company completed the disposal of a 51% equity interest in Deneng Power Plant and its subsidiary Quzhou Power Plant to an associate for a cash consideration of **RMB 142.7 million**[14](index=14&type=chunk) - Following the disposal, the Group's equity interest in the target company decreased to 49%, and the target company became an associate[15](index=15&type=chunk) - For the six months ended June 30, 2025, a loss on disposal of a subsidiary of **RMB 8,260 thousand** was recognized[16](index=16&type=chunk) Impact of Disposal of Target Group on the Group's Financial Position | As of Disposal Date | RMB thousands | | :--- | :--- | | Net Assets Disposed Of | 288,103 | | Cash Consideration Received | 142,720 | | Fair Value of Remaining Interest in Target Group | 137,123 | | Less: Net Assets Disposed Of | (288,103) | | Loss on Disposal of a Subsidiary | (8,260) | | Net Cash Inflow from Partial Disposal | 127,937 | [4 Revenue and Segment Reporting](index=11&type=section&id=4%20Revenue%20and%20Segment%20Reporting) The Group's primary business is power plant construction, operation, and management, with revenue from electricity, heat, and energy storage totaling RMB 244,426 thousand, all from China and reported as a single power segment - The Group's principal activities are the construction, operation, and management of power plants, with revenue derived from electricity volume charges, capacity charges, heat sales, and energy storage income[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) Revenue from Contracts with Customers by Major Products | | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Electricity:** | | | | Electricity Volume Charges Revenue | 90,139 | 38,216 | | Capacity Charges Revenue | 137,401 | 150,297 | | **Heat:** | | | | Heat Sales Revenue | 15,599 | 19,690 | | **Other Sources:** | | | | Energy Storage Revenue | 1,287 | – | | **Total Revenue** | **244,426** | **208,203** | - The Group's operating segments are aggregated into a single power segment for reporting purposes, with all revenue and major non-current assets located in China[25](index=25&type=chunk)[26](index=26&type=chunk) [5 Profit Before Tax](index=14&type=section&id=5%20Profit%20Before%20Tax) Profit before tax decreased to RMB 33,059 thousand for the six months ended June 30, 2025, primarily influenced by reduced net finance costs and increased depreciation expenses Net Finance Costs | | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income | (88) | (325) | | Interest on Interest-Bearing Borrowings and Shareholder Loans | 13,339 | 14,967 | | Bank Charges | 30 | 49 | | Net Exchange (Income)/Loss | (149) | 895 | | **Net Finance Costs** | **13,132** | **15,562** | Other Items | | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Amortization of Intangible Assets | 368 | 354 | | Depreciation of Property, Plant and Equipment | 51,221 | 45,370 | | Depreciation of Right-of-Use Assets | 822 | 897 | [6 Other Income](index=15&type=section&id=6%20Other%20Income) For the six months ended June 30, 2025, the Group's other income, primarily government grants, increased to RMB 717 thousand from RMB 539 thousand in the prior year Government Grants | | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants | 717 | 539 | - Government grants include unconditional government grants of **RMB 508 thousand** (2024: RMB 327 thousand) and amortized deferred government grants of **RMB 209 thousand** (2024: RMB 212 thousand)[30](index=30&type=chunk) [7 Income Tax](index=16&type=section&id=7%20Income%20Tax) Income tax expense increased by 18.46% to RMB 20,986 thousand for the six months ended June 30, 2025, with Chinese subsidiaries subject to a 25% corporate income tax rate and a deferred tax liability recognized for withholding tax Income Tax Expense | | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Tax | 17,938 | 12,948 | | Deferred Tax | (206) | 328 | | China Withholding Tax | 3,254 | 4,440 | | **Total Income Tax Expense** | **20,986** | **17,716** | - The corporate income tax rate for the Group's Chinese subsidiaries is uniformly **25%**[32](index=32&type=chunk) - A deferred tax liability of **RMB 8,596 thousand** (December 31, 2024: RMB 25,920 thousand) has been recognized for withholding tax payable on the distribution of retained profits by Chinese subsidiaries[34](index=34&type=chunk) [8 Earnings Per Share](index=17&type=section&id=8%20Earnings%20Per%20Share) Basic earnings per share decreased by 67.50% to RMB 0.026 for the six months ended June 30, 2025, primarily due to reduced profit attributable to equity holders, with diluted EPS being the same - Basic earnings per share is calculated based on profit attributable to ordinary equity holders of the Company of **RMB 12,073 thousand** (2024: RMB 36,837 thousand) and the weighted average number of ordinary shares outstanding of **458,600,000 shares**, resulting in **RMB 0.026** (2024: RMB 0.080)[35](index=35&type=chunk) - Diluted earnings per share is the same as basic earnings per share as there were no potential dilutive shares during the period[36](index=36&type=chunk) [9 Interests in an Associate](index=17&type=section&id=9%20Interests%20in%20an%20Associate) As of June 30, 2025, interests in an associate totaled RMB 139,039 thousand, primarily from the remaining 49% equity in Deneng Power Plant after disposal, with a recognized share of profit of RMB 1,916 thousand Carrying Amount of Interests in an Associate and Share of Profit or Loss | | June 30, 2025 (RMB thousands) | | :--- | :--- | | Carrying Amount at Beginning of Period | – | | Additions to Associate (Note 3) | 137,123 | | Share of Profit of an Associate | 1,916 | | **Carrying Amount at End of Period** | **139,039** | - Deneng Power Plant (registered capital of **USD 18,400,000**) became an associate of the Group with a **49%** equity interest, primarily engaged in operating power plants[38](index=38&type=chunk) - From the disposal date to June 30, 2025, Deneng Power Plant's revenue was **RMB 14,813 thousand**, and its profit was **RMB 3,910 thousand**[38](index=38&type=chunk) [10 Trade and Other Receivables](index=19&type=section&id=10%20Trade%20and%20Other%20Receivables) Total trade and other receivables increased to RMB 83,325 thousand as of June 30, 2025, primarily due to increased trade receivables, with all amounts expected to be recovered within one year Trade and Other Receivables | | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 75,533 | 45,921 | | Prepayments | 6,665 | 13,836 | | Other Receivables | 1,127 | 910 | | **Total** | **83,325** | **60,667** | - All trade and other receivables are expected to be recovered within one year[39](index=39&type=chunk) [11 Interest-Bearing Borrowings](index=20&type=section&id=11%20Interest-Bearing%20Borrowings) Total interest-bearing borrowings significantly decreased to RMB 300,269 thousand as of June 30, 2025, mainly due to a substantial reduction in unsecured related party loans, with interest rates ranging from 3.21% to 3.70% Composition of Interest-Bearing Borrowings | | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured Bank Loans | 140,614 | 115,500 | | Unsecured Related Party Loans | 159,655 | 516,826 | | Unsecured Bank Loans | – | 80,180 | | **Total** | **300,269** | **712,506** | - Secured bank loans are pledged against trade and other receivables, guaranteed by the ultimate holding company, and bear interest at an annual rate of **3.21%**[41](index=41&type=chunk) - Unsecured related party loans bear interest at annual rates ranging from **3.45% to 3.70%**[41](index=41&type=chunk) Repayment Schedule of Interest-Bearing Borrowings | | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within One Year or On Demand | 80,205 | 179,713 | | After One Year but Within Two Years | 51,250 | 368,300 | | After Two Years but Within Five Years | 168,814 | 164,493 | [12 Trade and Other Payables](index=21&type=section&id=12%20Trade%20and%20Other%20Payables) Total trade and other payables significantly decreased to RMB 91,376 thousand as of June 30, 2025, primarily due to reductions in construction payables and accrued expenses and other payables Composition of Trade and Other Payables | | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 1,341 | 766 | | Construction Payables | 72,341 | 125,985 | | Accrued Expenses and Other Payables | 3,467 | 6,486 | | Dividends Payable to Equity Holders | 5,855 | – | | Salaries Payable | 7,157 | 4,056 | | Other Taxes Payable | 1,215 | 5,473 | | **Total** | **91,376** | **142,766** | Aging Analysis of Trade Payables | | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within Three Months | 1,341 | 766 | [13 Dividends](index=22&type=section&id=13%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, but a final dividend of HKD 0.014 per share, totaling RMB 5,855 thousand, was approved and paid for the previous fiscal year - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[46](index=46&type=chunk) - During the six months ended June 30, 2025, a final dividend of **HKD 0.014** per share, totaling **RMB 5,855 thousand**, for the previous fiscal year was approved and paid[48](index=48&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, financial results, significant transactions, liquidity, and future outlook [Business Review](index=23&type=section&id=Business%20Review) In the first half of 2025, natural gas power generation increased by 136.96% due to rising electricity demand, while heat sales decreased by 16.47%, with stable capacity tariffs and fluctuating natural gas prices, alongside photovoltaic and energy storage operations - The Group primarily engages in the construction, operation, and management of natural gas power plants, owning three wholly-owned gas-fired power plants with a total generating capacity of **345.917 MW** and a total energy storage capacity of **100 MW/200 MWh** as of June 30, 2025[49](index=49&type=chunk) - In the first half of 2025, Zhejiang Province experienced steady growth in electricity demand and increased peak-shaving demand, leading to a **136.96%** year-on-year increase in the Group's natural gas power generation to **134,769 MWh**[50](index=50&type=chunk) - Heat sales volume decreased by **16.47%** year-on-year to **43,167 tons**, and heat sales revenue decreased by **20.78%** to **RMB 15,599 thousand**, but the gross profit margin increased by **23.69 percentage points** to **29.16%**[51](index=51&type=chunk) - Capacity tariffs remained flat compared to the prior year, while natural gas prices (including tax) and electricity volume tariffs fluctuated within a certain range[52](index=52&type=chunk)[53](index=53&type=chunk) [Natural Gas Power Generation](index=25&type=section&id=Natural%20Gas%20Power%20Generation) Natural gas power generation increased by 136.96% to 134,769 MWh in the first half of 2025, meeting Zhejiang Province's power market reform and peak-shaving demands - The Group's natural gas power generation in the first half of 2025 was **134,769 MWh**, a **136.96%** increase compared to the same period last year[54](index=54&type=chunk) [Photovoltaic Power Generation](index=26&type=section&id=Photovoltaic%20Power%20Generation) Photovoltaic power generation was approximately 1,323 MWh for the six months ended June 30, 2025, with 52 MWh sold to the grid, generating electricity cost savings of RMB 246 thousand and sales revenue of RMB 42.5 thousand - Photovoltaic power generation was approximately **1,323 MWh** (2024: 510 MWh), with **52 MWh** sold to the grid (2024: 53 MWh)[55](index=55&type=chunk) - Electricity cost savings from photovoltaic power generation amounted to **RMB 246 thousand** (2024: RMB 312 thousand), generating electricity sales revenue of **RMB 42.5 thousand** (2024: RMB 39 thousand)[55](index=55&type=chunk) [Heat Sales Volume](index=26&type=section&id=Heat%20Sales%20Volume) Heat sales volume decreased by 16.47% to 43,167 tons, with the average selling price falling by 5.16% to RMB 393.89 per ton, resulting in heat sales revenue of RMB 15,599 thousand and a gross profit margin increase of 23.69 percentage points - Heat sales volume was **43,167 tons**, a year-on-year decrease of **16.47%**. The average selling price decreased by **5.16%** to **RMB 393.89/ton**[56](index=56&type=chunk) - Heat sales revenue was **RMB 15,599 thousand**, with a gross profit of **RMB 4,548.49 thousand**, and the gross profit margin increased by **23.69 percentage points** to **29.16%**[56](index=56&type=chunk) [Energy Storage](index=26&type=section&id=Energy%20Storage) As of June 30, 2025, Lantian Power Plant's energy storage station accumulated charging volume of 62,259 MWh and discharging volume of 54,734 MWh - Lantian Power Plant's energy storage station accumulated a charging volume of **62,259 MWh** and a discharging volume of **54,734 MWh**[57](index=57&type=chunk) [Fuel Costs and Natural Gas Consumption](index=27&type=section&id=Fuel%20Costs%20and%20Natural%20Gas%20Consumption) Total natural gas consumption rose by 103.86% to 35,849,201 cubic meters, increasing average unit fuel cost for power generation by 11.01%, while average unit fuel cost for heat supply decreased by 18.53% due to lower natural gas prices, with total fuel costs increasing by 105.3% to RMB 112,576 thousand - Total natural gas consumption increased by **103.86%** year-on-year to **35,849,201 cubic meters**[58](index=58&type=chunk) - The average unit fuel cost for power generation increased by **11.01%** to **RMB 753.33/MWh**; the average unit fuel cost for heat supply decreased by **18.53%** to **RMB 255.99/ton**[58](index=58&type=chunk) - Total fuel costs increased by **105.3%** to **RMB 112,576 thousand**, with the ratio to relevant revenue increasing by **11.78 percentage points** to **106.47%**, primarily due to a decrease in the average natural gas price[58](index=58&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) For the first half of 2025, profit attributable to equity holders decreased by 67.23% to RMB 12,073 thousand, with basic and diluted earnings per share falling by 67.50%, primarily due to capacity tariff reductions, inverted natural gas power generation costs, and the disposal of a 51% equity interest in Deneng Power Plant - Profit attributable to equity holders of the Company was **RMB 12,073 thousand**, a **67.23%** decrease from the prior year, with basic and diluted earnings per share of **RMB 0.026**, a decrease of **RMB 0.054** from the prior year[60](index=60&type=chunk) - The decline in performance was primarily influenced by factors such as capacity tariff reductions, inverted natural gas power generation costs, incomplete implementation of the electricity spot market, and the disposal of a **51%** equity interest in Deneng Power Plant[60](index=60&type=chunk) [Revenue](index=28&type=section&id=Revenue) Revenue increased by 17.40% to RMB 244,426 thousand in the first half of 2025, primarily driven by increased natural gas power generation due to higher peak-shaving electricity demand - The Group's revenue was **RMB 244,426 thousand**, an increase of **17.40%** from the prior year, primarily comprising electricity volume charges, capacity charges, and heat sales revenue[61](index=61&type=chunk) [Operating Expenses](index=29&type=section&id=Operating%20Expenses) Operating expenses increased by 38.94% to RMB 192,608 thousand in the first half of the year, mainly due to higher fuel costs associated with increased power generation - Operating expenses were **RMB 192,608 thousand**, an increase of **38.94%** from the prior year, primarily consisting of fuel consumption, depreciation and amortization, repairs and maintenance, staff costs, and administrative expenses[62](index=62&type=chunk) [Operating Profit](index=29&type=section&id=Operating%20Profit) Operating profit decreased by 25.52% to RMB 51,818 thousand in the first half of the year, primarily due to inverted natural gas power generation costs, impacting profitability despite increased generation - Operating profit was **RMB 51,818 thousand**, a **25.52%** decrease from the prior year, primarily due to inverted natural gas power generation costs[63](index=63&type=chunk) [Finance Costs](index=29&type=section&id=Finance%20Costs) Net finance costs decreased by 15.61% to RMB 13,132 thousand in the first half of the year, primarily due to reduced interest expenses on certain loans and exchange rate adjustments - Net finance costs were **RMB 13,132 thousand**, a **15.61%** decrease from the prior year, primarily due to reduced interest expenses on certain loans and exchange rate adjustments[64](index=64&type=chunk) [Loss on Disposal of a Subsidiary](index=29&type=section&id=Loss%20on%20Disposal%20of%20a%20Subsidiary) The Group recognized a loss of RMB 8,260 thousand on the disposal of a 51% equity interest in Deneng Power Plant and its subsidiary Quzhou Power Plant in the first half of the year - The Group recognized a loss of **RMB 8,260 thousand** on the disposal of a **51%** equity interest in Deneng Power Plant and its subsidiary Quzhou Power Plant[65](index=65&type=chunk) [Share of Profit of an Associate](index=30&type=section&id=Share%20of%20Profit%20of%20an%20Associate) Following the disposal of a 51% equity interest in Deneng Power Plant, the remaining 49% interest was reclassified as an associate, and a net profit of RMB 1,916 thousand was recognized using the equity method - The Group recognized an adjustment to net profit of **RMB 1,916 thousand** using the equity method, as the target group became an associate[66](index=66&type=chunk)[67](index=67&type=chunk) [Income Tax](index=30&type=section&id=Income%20Tax) Income tax expense increased by 18.46% to RMB 20,986 thousand in the first half of the year, with Chinese subsidiaries subject to a 25% corporate income tax rate - Income tax expense was **RMB 20,986 thousand**, an increase of **18.46%** from the prior year[68](index=68&type=chunk) [Earnings Per Share](index=30&type=section&id=Earnings%20Per%20Share) Profit attributable to equity holders was RMB 12,073 thousand, resulting in basic and diluted earnings per share of RMB 0.026, a 67.50% year-on-year decrease - Basic and diluted earnings per share were **RMB 0.026**, a year-on-year decrease of **67.50%**[69](index=69&type=chunk) [Significant Acquisitions and Disposals](index=30&type=section&id=Significant%20Acquisitions%20and%20Disposals) On May 30, 2025, the company disposed of a 51% equity interest in Deneng Power Plant to an associate for RMB 142,720 thousand, resulting in the loss of control over Deneng Power Plant - On May 30, 2025, the disposal of a **51%** equity interest in Deneng Power Plant to Shunfa Hengneng Co., Ltd., a related party, for a consideration of **RMB 142,720 thousand** was completed[70](index=70&type=chunk)[71](index=71&type=chunk) - Following the disposal, Deneng Power Plant ceased to be a subsidiary of the Company, and the Group lost control over it[71](index=71&type=chunk) [Significant Investment Activities](index=31&type=section&id=Significant%20Investment%20Activities) The Group had no significant investment activities during the review period - The Group had no significant investment activities during the review period[72](index=72&type=chunk) [Liquidity and Financial Resources](index=31&type=section&id=Liquidity%20and%20Financial%20Resources) Cash and cash equivalents increased to RMB 246,947 thousand, and net current assets turned positive to RMB 32,210 thousand, primarily due to cash inflows from the power plant disposal and reduced current liabilities - Cash and cash equivalents increased to **RMB 246,947 thousand** (December 31, 2024: RMB 114,458 thousand), primarily due to the disposal of a **51%** equity interest in Deneng Power Plant[73](index=73&type=chunk) - Net current assets turned from net current liabilities of **RMB 229,592 thousand** to net current assets of **RMB 32,210 thousand**, primarily due to increased cash from the power plant disposal and reduced current liabilities[73](index=73&type=chunk) - The Group's funding sources primarily comprise cash inflows from operating activities and loans granted by banks and related parties[74](index=74&type=chunk) [Indebtedness](index=32&type=section&id=Indebtedness) Total indebtedness significantly decreased to RMB 512,487 thousand as of June 30, 2025, primarily due to a substantial reduction in unsecured related party loans, with approximately RMB 352,832 thousand being fixed-rate HKD debt Composition of Indebtedness | | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured Bank Loans | 140,614 | 115,500 | | Unsecured Related Party Loans | 159,655 | 516,826 | | Unsecured Bank Loans Guaranteed by Related Parties | – | 80,180 | | Trade and Other Payables | 91,376 | 142,766 | | Shareholder Loans | 120,842 | 120,269 | | **Total** | **512,487** | **975,541** | - Approximately **RMB 352,832 thousand** was fixed-rate HKD debt, with the remainder being RMB-denominated floating-rate debt bearing interest at annual rates ranging from **3.45% to 3.70%**[77](index=77&type=chunk) [Gearing Ratio](index=33&type=section&id=Gearing%20Ratio) The gearing ratio significantly decreased to 16.51% as of June 30, 2025, from 45.05% on December 31, 2024, reflecting a substantial reduction in financial leverage - The gearing ratio decreased from **45.05%** as of December 31, 2024, to **16.51%** as of June 30, 2025[78](index=78&type=chunk) [Capital Expenditure](index=33&type=section&id=Capital%20Expenditure) Capital expenditure amounted to RMB 54,866 thousand for the six months ended June 30, 2025, primarily for the Anji Power Plant heating network, Lantian Power Plant energy storage project, and power plant equipment technical upgrades - Capital expenditure was **RMB 54,866 thousand** (2024: RMB 71,325 thousand), primarily for the Anji Power Plant heating network, Lantian Power Plant energy storage project construction, and power plant equipment technical upgrade costs[79](index=79&type=chunk) [Capital Commitments](index=33&type=section&id=Capital%20Commitments) Capital commitments totaled RMB 38,021 thousand as of June 30, 2025, mainly for the Anji Power Plant heating network Phase II, Lantian energy storage project, and power plant generator unit technical upgrades and maintenance - Capital commitments were **RMB 38,021 thousand** (December 31, 2024: RMB 53,399 thousand), primarily for the Anji Power Plant heating network Phase II project, Lantian energy storage project, and power plant generator unit technical upgrades and maintenance[80](index=80&type=chunk) [Pledge of Assets](index=33&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, trade and other receivables with a carrying amount of RMB 3,677 thousand were pledged as security for bank loans - Trade and other receivables with a carrying amount of **RMB 3,677 thousand** were pledged as security for bank loans[81](index=81&type=chunk) [Contingent Liabilities](index=34&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities[82](index=82&type=chunk) [Foreign Exchange Risk](index=34&type=section&id=Foreign%20Exchange%20Risk) The Group primarily operates in mainland China with most transactions settled in RMB, resulting in insignificant foreign exchange risk, and currently does not use derivative instruments for hedging - The Group primarily operates in mainland China, with most transactions settled in RMB, resulting in insignificant foreign exchange risk, and currently does not use any derivative instruments for hedging[83](index=83&type=chunk) [Employees and Remuneration Policy](index=34&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 187 employees, with total remuneration of RMB 12,224 thousand, and its policy is based on industry practice, financial performance, and employee performance, offering benefits to retain talent - As of June 30, 2025, the Group had **187 employees** (December 31, 2024: 297 employees)[84](index=84&type=chunk) - Total employee remuneration was **RMB 12,224 thousand** (2024: RMB 15,425 thousand), with the remuneration policy based on industry practice, financial performance, and employee performance[84](index=84&type=chunk) [Outlook](index=35&type=section&id=Outlook) 2025 presents challenges due to electricity spot market reforms and capacity tariff reductions, prompting the company to explore new operating models, seek market alignment, and pursue strategic transformation through acquisitions or investments in energy-related and upstream/downstream businesses, utilizing disposal proceeds for working capital and future development - 2025 presents operational challenges due to electricity spot market reforms and capacity tariff reduction policies[85](index=85&type=chunk) - The company will actively explore new operating models, seek market alignment, and commit to strategic transformation, intending to develop through acquisitions or investments in energy-related and upstream/downstream businesses[85](index=85&type=chunk) - Proceeds from the disposal will be used to develop energy-related businesses and/or other upstream and downstream businesses that generate synergies with the company's core business and align with its strategy, supplementing working capital and funding future development[85](index=85&type=chunk) [Other Information](index=35&type=section&id=Other%20Information) This section covers interim dividend policy, post-reporting period events, securities transactions, corporate governance, directors' compliance, audit committee review, and publication of interim results and reports [Interim Dividend](index=35&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[86](index=86&type=chunk) [Events After Reporting Period](index=35&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period and up to the date of this announcement, other than those already disclosed - Except as otherwise disclosed in this announcement, no significant events have occurred after the reporting period and up to the date of this announcement[87](index=87&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities on the HKEX, and the company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities listed on The Stock Exchange of Hong Kong Limited[88](index=88&type=chunk) - As of June 30, 2025, the Company held no treasury shares[88](index=88&type=chunk) [Corporate Governance](index=36&type=section&id=Corporate%20Governance) The company consistently complied with the code provisions and applicable recommended best practices of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company has consistently complied with the code provisions and applicable recommended best practices of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[89](index=89&type=chunk) [Directors' Compliance with Code of Conduct](index=36&type=section&id=Directors%27%20Compliance%20with%20Code%20of%20Conduct) The company adopted a code of conduct for directors' securities transactions no less exacting than the standard set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the review period - The Company has adopted a code of conduct for directors' securities transactions no less exacting than the standard code set out in Appendix C3 of the Listing Rules[90](index=90&type=chunk) - All directors confirmed compliance with the required standards set out in the code of conduct during the review period[90](index=90&type=chunk) [Audit Committee and Review of Interim Results](index=37&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's interim results for the six months ended June 30, 2025, confirming compliance with applicable accounting standards, laws, and regulations, and appropriate disclosures - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim results for the six months ended June 30, 2025[91](index=91&type=chunk) - The Audit Committee is of the opinion that the interim results comply with applicable accounting standards, laws, and regulations, and appropriate disclosures have been made[91](index=91&type=chunk) [Publication of Interim Results and Interim Report](index=37&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement has been published on the company's website and the HKEX website, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course - This interim results announcement has been published on the Company's website (www.puxing-energy.com) and the HKEX website (www.hkexnews.hk)[92](index=92&type=chunk) - The interim report, containing all information required by the Listing Rules, will be dispatched to shareholders requesting printed copies and published on the aforementioned websites in due course[92](index=92&type=chunk)

Company Information [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) This section details the company's China and Hong Kong office addresses, official website, board of directors, committees, CEO, company secretary, authorized representatives, auditors, legal advisors, and principal bankers - The company has its China office at No. 27 Chaoqian Road, Changping Science Park, Beijing, China, and its Hong Kong office at 66/F, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong[6](index=6&type=chunk) - The Chairman of the Board is Mr. Chen Zhengyong, Vice Chairmen are Mr. Li Zhonghua and Mr. Yang Peng, and the President is Mr. Chen Peng[6](index=6&type=chunk) - The Chairman of the Audit Committee is Mr. Fan Xiaoliang, the Chairman of the Remuneration Committee is Professor Shen Zuojun, and the Chairman of the Nomination Committee is Mr. Chen Zhengyong[7](index=7&type=chunk)[8](index=8&type=chunk) [H Share Information](index=5&type=section&id=H%20Share%20Information) This section outlines the company's H share listing details on GEM, including listing venue, stock code, number of H shares issued, par value, and stock short name H Share Basic Information | Metric | Information | | :--- | :--- | | Listing Venue | GEM | | Stock Code | 8247 | | Number of H Shares Issued | 64,286,143 H shares | | Par Value | RMB 1.00 per share | | Stock Short Name | CNBG Bio-Tech | Group Profile [Company Business and Background](index=6&type=section&id=Company%20Business%20and%20Background) The company is a leading Chinese IVD reagent supplier, focusing on R&D, production, sales, and distribution of IVD products, backed by its largest shareholder, a subsidiary of the Chinese Academy of Sciences - CNBG Bio-Tech is a leading in-vitro diagnostic (IVD) reagent supplier in China, primarily engaged in the R&D, production, sales, and distribution of IVD reagent products[10](index=10&type=chunk) - The company's largest shareholder, Beijing Pusa Asset Management Co., Ltd., is a wholly-owned subsidiary of the Institute of Biophysics, Chinese Academy of Sciences, providing strong scientific research backing[10](index=10&type=chunk)[11](index=11&type=chunk) - The company's "CNBG" brand enjoys a high reputation, having received awards such as "Beijing Famous Brand Product," "China Diagnostic Reagent Market User Satisfied Quality and Reputation First Brand," and "Beijing Famous Trademark"[10](index=10&type=chunk) - The company's H shares have been listed on GEM since February 27, 2006[12](index=12&type=chunk) Group Structure [Equity Structure Chart](index=7&type=section&id=Equity%20Structure%20Chart) This section illustrates the equity structure of the company, its major shareholders, and subsidiaries, including the Chinese Academy of Sciences and Beijing Pusa Asset Management Co., Ltd., with their respective shareholding percentages - The Group's organizational chart shows the Institute of Biophysics, Chinese Academy of Sciences, holding equity in CNBG Bio-Tech through Beijing Pusa Asset Management Co., Ltd[15](index=15&type=chunk) - CNBG Bio-Tech's H shares are listed on GEM of the Stock Exchange, and its subsidiary, Beijing CNBG Jinyu Diagnostic Technology Co., Ltd., has its shares traded on the National Equities Exchange and Quotations (New Third Board)[16](index=16&type=chunk) Management Discussion and Analysis [Operating Environment](index=8&type=section&id=Operating%20Environment) In H1 2025, China's IVD industry faced intensified competition and profit pressure due to centralized procurement, medical insurance cost control, and post-pandemic market shifts, despite continuous market demand growth - The continuous advancement of domestic IVD centralized procurement expansion and national medical insurance cost control policies, along with changes in market demand post-pandemic, profoundly impacted the company's business[17](index=17&type=chunk) - Competition in the IVD industry intensified, with the biochemical diagnostics sector facing dual pressure from established domestic and international players and emerging competitors, increasing market expansion difficulty[17](index=17&type=chunk) - Population aging, increasing chronic diseases, rising healthcare investment, and enhanced technological innovation are continuous drivers for China's IVD industry, but centralized procurement and intensified competition led to suppressed product terminal prices and profit growth pressure for enterprises[18](index=18&type=chunk) [Financial Performance](index=9&type=section&id=Financial%20Performance) During the reporting period, the company experienced significant declines in revenue and gross profit, primarily due to centralized procurement and medical insurance cost control policies, leading to an expanded loss H1 2025 Key Financial Indicators | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue from Principal Activities | 95,800 | 133,800 | -28.4% | | Gross Profit | 37,400 | 58,500 | -36.1% | | Gross Profit Margin | 39.0% | 43.7% | -4.7 percentage points | | Selling and Distribution Expenses | 20,300 | 31,600 | -35.7% | | Administrative Expenses | 23,300 | 22,300 | +4.4% | | Research and Development Expenses | 13,300 | 16,900 | -21.0% | | Loss for the Period | 22,900 | 18,300 | +25.1% | - The decrease in revenue and gross profit was primarily due to the impact of centralized procurement of medical consumables and national medical insurance cost control policies, leading to lower product selling prices, reduced sales volume, and an increased proportion of revenue from lower gross margin products[21](index=21&type=chunk)[22](index=22&type=chunk) - In terms of R&D, the company completed the renewal registration for **76 Class II products** and successfully completed the initial registration for **1 Class III novel coronavirus antigen detection kit**[25](index=25&type=chunk) [Future Outlook](index=10&type=section&id=Future%20Outlook) China's IVD market is projected to exceed RMB 190 billion by 2028, and the company plans to strengthen its core business, diversify product lines, optimize operations, and expand market channels to seize opportunities - China's IVD market size is expected to grow from **RMB 133.2 billion in 2024** to **RMB 190 billion in 2028**, maintaining high growth momentum[27](index=27&type=chunk) - The company's strategy for the second half of the year includes: maintaining the quality advantage of traditional biochemical diagnostic products and increasing sales; strengthening multi-pipeline product layout and market promotion; optimizing production processes to reduce production costs; and closely following industry trends to proactively plan for new business growth points[29](index=29&type=chunk) - The company's independently developed **4-laser 21-color BioCyteX (clinical) high-end flow cytometer** has obtained a medical device registration certificate and commenced market sales on August 1, 2025, making it the first domestic brand product to receive a 4-laser flow cytometer registration certificate in China[29](index=29&type=chunk) - The company is actively expanding domestic and international market channels, for example, achieving steady sales growth in the Southeast Asian market through deep cooperation with China Resources Beijing Technology to build an integrated IVD supply chain platform[30](index=30&type=chunk)[31](index=31&type=chunk) [Capital Structure, Financial Position, and Liquidity](index=12&type=section&id=Capital%20Structure%2C%20Financial%20Position%2C%20and%20Liquidity) During the reporting period, the company's capital structure changed with increased net debt and net debt-to-capital ratio, and decreased cash and bank balances, relying on borrowings for operations Capital Structure Key Indicators | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 46,345 | 68,213 | -21,868 | | Short-term Loans | 133,983 | 143,665 | -9,682 | | Long-term Loans | 2,855 | 4,456 | -1,601 | | Net Debt | 90,493 | 80,008 | +10,485 | | Net Debt-to-Capital Ratio | 58% | 46% | +12 percentage points | | Debt-to-Asset Ratio (Total Liabilities/Total Assets) | 64% | 63% | +1 percentage point | - During the reporting period, the company renewed or obtained new bank and other borrowings totaling approximately **RMB 79.5 million**[32](index=32&type=chunk) - Some of the company's buildings, prepaid land lease payments, and machinery were pledged as collateral for bank loans, involving approximately **RMB 81.8 million** in bank loans and **RMB 2.4 million** in other loans[36](index=36&type=chunk) [Foreign Exchange Risk](index=13&type=section&id=Foreign%20Exchange%20Risk) The Group's operations are primarily in China, with most transactions in RMB, resulting in low foreign exchange risk, with minimal HKD cash for Hong Kong expenses - The Group's operations are primarily located in China, with almost all transactions conducted in RMB, resulting in low foreign exchange risk[35](index=35&type=chunk) - A small amount of HKD-denominated cash is held in Hong Kong bank accounts to cover miscellaneous expenses incurred in Hong Kong[35](index=35&type=chunk) [Capital Expenditure](index=13&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's total capital expenditure amounted to RMB 8 million - For the six months ended June 30, 2025, the Group's total capital expenditure amounted to **RMB 8 million**[37](index=37&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of the reporting period end, the Group's counter-guarantee for a loan to a guarantee company remained at RMB 2 million, consistent with the end of 2024 Contingent Liabilities | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Counter-guarantee to a guarantee company for a loan | 2,000 | 2,000 | [Significant Investments, Acquisitions, Disposals, and Future Plans](index=14&type=section&id=Significant%20Investments%2C%20Acquisitions%2C%20Disposals%2C%20and%20Future%20Plans) During the reporting period, the company held no significant investments or conducted major acquisitions/disposals, but plans to actively seek investment opportunities and strategic expansions to enhance revenue and profitability - For the six months ended June 30, 2025, the company held no significant investments and did not undertake any major acquisitions or disposals of subsidiaries and associates[39](index=39&type=chunk) - The Group will actively seek investment opportunities to expand its revenue base, enhance future financial performance and profitability, and pursue strategic expansion through acquisitions of suitable target companies[39](index=39&type=chunk) [Employees and Remuneration Policy](index=15&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 471 full-time employees, with total staff costs of RMB 42.7 million, a decrease year-on-year, and remunerates based on qualifications, experience, performance, and market levels - As of June 30, 2025, the Group employed **471 full-time employees**, a decrease from **554** in the same period of 2024[41](index=41&type=chunk) - For the six months ended June 30, 2025, the Group's total staff costs were approximately **RMB 42.7 million**, a decrease from **RMB 52.1 million** in the same period[41](index=41&type=chunk) - The company determines remuneration based on the qualifications, experience, performance, and market levels of employees and directors, and provides regular training to enhance their technical skills and product knowledge[41](index=41&type=chunk) [Events After Reporting Period](index=15&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the company occurred after the reporting period and up to the date of this report, other than those already disclosed - Except as disclosed in this report, no significant events affecting the company occurred after the reporting period and up to the date of this report[43](index=43&type=chunk) [Acknowledgements](index=15&type=section&id=Acknowledgements) Mr. Chen Zhengyong, Chairman of the Board, expressed sincere gratitude on behalf of the Board to all shareholders, business partners, and employees for their contributions - Mr. Chen Zhengyong, Chairman of the Board, on behalf of the Board, extended sincere gratitude to all shareholders, business partners for their steadfast support, and all employees for their valuable contributions[44](index=44&type=chunk)[45](index=45&type=chunk) Condensed Consolidated Statement of Profit or Loss [Profit or Loss Overview](index=16&type=section&id=Profit%20or%20Loss%20Overview) For the six months ended June 30, 2025, the Group's revenue decreased by 28.4% to RMB 95,815 thousand, gross profit decreased by 36.1% to RMB 37,378 thousand, and loss for the period expanded to RMB 22,902 thousand Condensed Consolidated Statement of Profit or Loss Key Data | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 95,815 | 133,828 | | Cost of Sales | (58,437) | (75,297) | | Gross Profit | 37,378 | 58,531 | | Loss from Operating Activities | (18,315) | (11,951) | | Loss Before Tax | (22,693) | (16,145) | | Loss for the Period | (22,902) | (18,314) | | Loss Attributable to Owners of the Parent | (17,976) | (13,182) | | Basic and Diluted Loss Per Share (RMB) | (0.124) | (0.091) | Condensed Consolidated Statement of Comprehensive Income [Comprehensive Income Overview](index=18&type=section&id=Comprehensive%20Income%20Overview) For the six months ended June 30, 2025, the Group's total loss for the period and total comprehensive loss amounted to RMB 22,873 thousand, with RMB 17,947 thousand attributable to owners of the parent Condensed Consolidated Statement of Comprehensive Income Key Data | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Loss for the Period and Total Comprehensive Loss | (22,873) | (18,337) | | Attributable to Owners of the Parent | (17,947) | (13,205) | | Attributable to Non-controlling Interests | (4,926) | (5,132) | Condensed Consolidated Statement of Financial Position [Assets and Liabilities Overview](index=19&type=section&id=Assets%20and%20Liabilities%20Overview) As of June 30, 2025, the Group reported total non-current assets of RMB 189,228 thousand, total current assets of RMB 245,903 thousand, and total current liabilities of RMB 272,675 thousand, resulting in net current liabilities of RMB (26,772) thousand Condensed Consolidated Statement of Financial Position Key Data | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 189,228 | 191,967 | | Total Current Assets | 245,903 | 285,405 | | Total Current Liabilities | 272,675 | 292,895 | | Net Current Liabilities | (26,772) | (7,490) | | Net Assets | 155,094 | 174,467 | | Total Equity | 155,094 | 174,467 | - Current liabilities exceeded current assets by approximately **RMB 26,772 thousand**, but the directors believe the Group will have sufficient bank financing and major shareholder support to prepare the financial statements on a going concern basis[54](index=54&type=chunk) Condensed Consolidated Statement of Changes in Equity [Equity Changes Overview](index=21&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2025, equity attributable to owners of the parent decreased from RMB 167,805 thousand to RMB 149,858 thousand, primarily due to a loss for the period of RMB 17,976 thousand Condensed Consolidated Statement of Changes in Equity Key Data | Metric | June 30, 2025 (RMB thousands) | January 1, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Parent at Beginning of Period | 167,805 | 210,387 | | Loss for the Period | (17,976) | (13,182) | | Exchange Differences on Translation of Foreign Operations | 29 | (23) | | Capital Contribution from Non-controlling Interests of a Subsidiary | – | – | | Equity Attributable to Owners of the Parent at End of Period | 149,858 | 197,182 | | Non-controlling Interests at End of Period | 5,236 | 15,885 | | Total Equity at End of Period | 155,094 | 213,067 | Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=22&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash used in operating activities was RMB (22,537) thousand, net cash from investing activities was RMB 1,509 thousand, and net cash used in financing activities was RMB (840) thousand, resulting in a net decrease in cash and cash equivalents of RMB (21,868) thousand Condensed Consolidated Statement of Cash Flows Key Data | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (22,537) | (28,956) | | Net Cash From/(Used in) Investing Activities | 1,509 | (927) | | Net Cash (Used in)/From Financing Activities | (840) | 1,549 | | Net Decrease in Cash and Cash Equivalents | (21,868) | (28,334) | | Cash and Cash Equivalents at Beginning of Period | 68,213 | 63,410 | | Cash and Cash Equivalents at End of Period | 46,345 | 35,076 | Notes to the Condensed Consolidated Financial Statements [1. Basis of Preparation](index=23&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards on a going concern basis, supported by sufficient bank financing and major shareholders despite net current liabilities - The condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants[54](index=54&type=chunk) - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately **RMB 26,772,000**, but the directors believe there is sufficient bank financing and major shareholder support, thus preparing on a going concern basis[54](index=54&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=23&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The financial information for this period adopted revised Hong Kong Financial Reporting Standards for the first time, with no significant financial impact or material changes to accounting policies - The financial information for this period adopted revised Hong Kong Financial Reporting Standards for the first time, including amendments to Hong Kong Accounting Standard 21 – Lack of Exchangeability[55](index=55&type=chunk)[56](index=56&type=chunk) - The adoption of these amendments had no significant financial impact on the condensed consolidated financial information, and there were no material changes to accounting policies[56](index=56&type=chunk) [3. Operating Segment Information](index=24&type=section&id=3.%20Operating%20Segment%20Information) The Group operates a single reportable segment: in-vitro diagnostic reagent products, with approximately 89% of revenue from mainland China customers and all non-current assets located in mainland China - The Group has only one reportable operating segment: the in-vitro diagnostic reagent products segment, which covers the manufacturing, sales, and distribution of various single/dual diagnostic reagent products[58](index=58&type=chunk) - For the six months ended June 30, 2025, approximately **89% of revenue** was derived from customers in mainland China, and all non-current assets are located in mainland China[59](index=59&type=chunk) - During the reporting period, no single customer contributed **10% or more** to the Group's revenue[60](index=60&type=chunk) [4. Revenue](index=24&type=section&id=4.%20Revenue) The Group's total revenue for the reporting period was RMB 95,815 thousand, primarily derived from the sale of in-vitro diagnostic reagent products, which accounted for RMB 93,928 thousand Revenue Analysis | Revenue Source | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Sale of in-vitro diagnostic reagent products | 93,928 | 133,049 | | Other services | 1,887 | 779 | | **Total Revenue** | **95,815** | **133,828** | [5. Loss from Operating Activities](index=25&type=section&id=5.%20Loss%20from%20Operating%20Activities) The Group's loss from operating activities was primarily influenced by the cost of inventories sold and services rendered, and depreciation and amortization expenses, totaling RMB 58,437 thousand and RMB 10,254 thousand respectively Components of Loss from Operating Activities | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories sold and services rendered | 58,437 | 75,297 | | Exchange differences, net | (63) | 9 | | Depreciation of property, plant and equipment | 7,367 | 7,790 | | Depreciation of investment properties | 361 | 361 | | Depreciation of right-of-use assets | 1,444 | 1,505 | | Amortisation of other intangible assets | 1,082 | 1,562 | [6. Income Tax Expense](index=25&type=section&id=6.%20Income%20Tax%20Expense) The Group operates in China with a 25% corporate income tax rate, but the company and a subsidiary enjoy a 15% preferential rate as high-tech enterprises, resulting in an income tax expense of RMB 209 thousand for the period - The Group operates in China, where the corporate income tax rate is **25%**[64](index=64&type=chunk) - The company and one of its subsidiaries (CNBG Jinyu) enjoy a **15% preferential tax rate** as high-tech enterprises[64](index=64&type=chunk) Income Tax Expense | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Current – China | 209 | 2,212 | | Deferred | – | (43) | | **Total Tax Expense for the Period** | **209** | **2,169** | [7. Loss Per Share Attributable to Owners of the Company](index=26&type=section&id=7.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, the basic loss per share attributable to owners of the company was RMB 0.124, with diluted loss per share being the same due to no potential dilutive ordinary shares - The basic loss per share for the six months ended June 30, 2025, was **RMB 0.124**[67](index=67&type=chunk) - Loss per share is calculated based on the unaudited loss for the period attributable to the company's equity and the weighted average of **144,707,176 ordinary shares** outstanding during the period[67](index=67&type=chunk) - As the Group had no potentially dilutive ordinary shares outstanding during the reporting period, the diluted loss per share is the same as the basic loss per share[67](index=67&type=chunk) [8. Interim Dividend](index=26&type=section&id=8.%20Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[68](index=68&type=chunk) [9. Trade and Bills Receivables](index=27&type=section&id=9.%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables decreased to RMB 106,123 thousand from RMB 121,544 thousand at the end of 2024, with credit terms typically ranging from three to twelve months - The Group typically grants credit terms of **three months** to its customers, with some long-term customers receiving payment periods ranging from **four to twelve months**[70](index=70&type=chunk) Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 21,996 | 33,801 | | 4 to 6 months | 17,062 | 20,919 | | 7 to 12 months | 22,979 | 27,428 | | 1 to 2 years | 32,258 | 31,690 | | Over 2 years | 11,828 | 7,706 | | **Total** | **106,123** | **121,544** | [10. Trade Payables](index=28&type=section&id=10.%20Trade%20Payables) As of June 30, 2025, the Group's total trade payables decreased to RMB 71,965 thousand from RMB 87,108 thousand at the end of 2024, which are interest-free and typically settled within 30 to 90 days - Trade payables are interest-free and typically settled within **30 to 90 days** of the credit period[72](index=72&type=chunk) Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 9,286 | 21,543 | | 4 to 6 months | 10,772 | 7,390 | | 7 to 12 months | 11,911 | 11,494 | | 1 to 2 years | 14,056 | 33,946 | | Over 2 years | 25,940 | 12,735 | | **Total** | **71,965** | **87,108** | [11. Interest-Bearing Bank and Other Borrowings](index=28&type=section&id=11.%20Interest-Bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank and other borrowings amounted to RMB 136,838 thousand, predominantly current bank loans, with secured bank loans totaling RMB 91,800 thousand Interest-Bearing Bank and Other Borrowings | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank loans (unsecured) | 42,608 | 53,764 | | Bank loans (secured) | 91,800 | 78,900 | | Other loans (unsecured) | – | 10,000 | | Other loans (secured) | 2,430 | 5,557 | | **Total Bank and Other Borrowings** | **136,838** | **148,221** | | Classified as current liabilities | (133,983) | (143,665) | | Non-current portion | 2,855 | 4,556 | [12. Share Capital](index=29&type=section&id=12.%20Share%20Capital) As of June 30, 2025, the company's total registered, issued, and fully paid share capital was RMB 144,707 thousand, comprising 80,421,033 domestic shares and 64,286,143 H shares, each with a par value of RMB 1 Share Capital Composition | Share Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Domestic Shares (80,421,033 shares) | 80,421 | 80,421 | | H Shares (64,286,143 shares) | 64,286 | 64,826 | | **Total Share Capital** | **144,707** | **144,707** | [13. Contingent Liabilities](index=29&type=section&id=13.%20Contingent%20Liabilities) As of June 30, 2025, the Group's counter-guarantee for a subsidiary's loan to a guarantee company remained at RMB 2,000,000, consistent with the end of 2024 - As of June 30, 2025, the Group's counter-guarantee to a guarantee company for a loan granted to a subsidiary was **RMB 2,000,000**[76](index=76&type=chunk) [14. Related Party Transactions](index=29&type=section&id=14.%20Related%20Party%20Transactions) During the reporting period, the Group engaged in related party transactions including technical service fees, product sales, and purchases, with some agreements terminating due to expiry or disposal of the related entity Significant Transactions with Related Parties | Transaction Type | Related Party | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Payment of technical service fees | Institute of Biophysics, Chinese Academy of Sciences | – | 250 | | Sale of products | Anhui Guoke Kangyi Medical Technology Co., Ltd. | – | 859 | | Purchase of products and materials | Anhui Guoke Kangyi Medical Technology Co., Ltd. | – | 750 | - The company's 20-year exclusive technical license agreement with the Institute of Biophysics expired in **December 2024**, and no further usage fees have been paid since then[83](index=83&type=chunk) - Anhui Guoke Kangyi Medical Technology Co., Ltd. was sold to an independent third party on **April 1, 2024**, thus terminating the ongoing connected transactions with that company[83](index=83&type=chunk) Unpaid Balances with Related Parties | Item | Related Party | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Other payables | Institute of Biophysics | 4,500 | 4,500 | | Trade payables | Anhui Guoke Kangyi Medical Technology Co., Ltd. | – | 290 | Key Management Personnel Remuneration | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term employee benefits | 1,445 | 2,809 | | Post-employment benefits | 188 | 224 | | **Total** | **1,633** | **3,033** | [15. Approval of Financial Statements](index=31&type=section&id=15.%20Approval%20of%20Financial%20Statements) The Board of Directors approved and authorized the publication of the condensed financial statements on August 29, 2025 - The Board of Directors approved and authorized the publication of the condensed financial statements on **August 29, 2025**[82](index=82&type=chunk) Other Information [Directors', Supervisors' and Chief Executive's Interests in Shares and Underlying Shares](index=32&type=section&id=Directors%27%2C%20Supervisors%27%20and%20Chief%20Executive%27s%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Mr. Wu Lebin, Mr. Chen Peng, and Mr. Chen Zhengyong held domestic shares representing 2.42%, 7.83%, and 6.91% respectively of the company's total registered share capital Directors', Supervisors' and Chief Executive's Long Positions in the Company's Shares | Name | Number of Domestic Shares Held | Percentage of Company's Domestic Shares | Percentage of Company's Total Registered Share Capital | | :--- | :--- | :--- | :--- | | Mr. Wu Lebin | 3,500,878 | 4.35% | 2.42% | | Mr. Chen Peng | 11,330,334 | 14.09% | 7.83% | | Mr. Chen Zhengyong | 10,000,000 | 12.43% | 6.91% | - Save as disclosed above, no director, supervisor, or chief executive had any disclosable interests or short positions in the shares and underlying shares of the company or any of its associated corporations[84](index=84&type=chunk) [Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares](index=33&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Beijing Pusa Asset Management Co., Ltd. was the largest shareholder, holding 38.93% of domestic shares, representing 21.64% of total registered share capital, with other significant shareholders also disclosed Substantial Shareholders' and Other Persons' Long Positions in the Company's Shares | Shareholder Name/Individual | Capacity and Nature of Interest | Number of Company Shares Held (Domestic Shares) | Number of Company Shares Held (H Shares) | Percentage of Relevant Class of Company Shares (Domestic Shares) | Percentage of Relevant Class of Company Shares (H Shares) | Percentage of Company's Total Registered Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Pusa Asset Management Co., Ltd. | Directly beneficially owned | 31,308,576 | – | 38.93% | – | 21.64% | | Hong Kong Zhixin Investment Co., Ltd. | Directly beneficially owned | – | 27,256,143 | – | 42.40% | 18.84% | | Hainan Zhixin Investment Partnership (Limited Partnership) | Through controlled corporation | – | 27,256,143 | – | 42.40% | 18.84% | | Mr. Li Dongfeng | Through controlled corporation | – | 27,256,143 | – | 42.40% | 18.84% | | Mr. Yan Kang | Through controlled corporation | – | 27,256,143 | – | 42.40% | 18.84% | | Yunnan Shengneng Investment Partnership (Limited Partnership) | Directly beneficially owned | 10,939,314 | 6,780,000 | 13.60% | 10.55% | 12.24% | | Mr. Li Yangyixiong | Through controlled corporation | 10,939,314 | 6,780,000 | 13.60% | 10.55% | 12.24% | | Jingning Guoke Kangyi Enterprise Management Center (Limited Partnership) | Directly beneficially owned | 11,330,334 | – | 14.09% | – | 7.83% | | Sichuan CNBG Medical Devices Co., Ltd. | Directly beneficially owned | 10,000,000 | – | 12.43% | – | 6.91% | | Zhongshi Jianyue Co., Ltd. | Directly beneficially owned | – | 3,800,000 | – | 5.91% | 2.63% | | Wang Kuan Cheng Education Fund | Through controlled corporation | – | 3,800,000 | – | 5.91% | 2.63% | - Hong Kong Zhixin Investment Co., Ltd. is wholly owned by Hainan Zhixin Investment Partnership (Limited Partnership), which is approximately **36.01%** owned by Mr. Yan Kang and Mr. Li Dongfeng, respectively[89](index=89&type=chunk) - Jingning Guoke Kangyi Enterprise Management Center (Limited Partnership) is **99.5%** owned by Mr. Chen Peng, the company's President[89](index=89&type=chunk) - Sichuan CNBG Medical Devices Co., Ltd. is approximately **77.94%** owned by Mr. Chen Zhengyong[89](index=89&type=chunk) [Directors' and Supervisors' Rights to Acquire Shares or Debentures](index=35&type=section&id=Directors%27%20and%20Supervisors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) For the six months ended June 30, 2025, neither the company nor its subsidiaries granted any rights or options to directors, supervisors, or their associates to acquire the company's shares or debentures, nor were such rights exercised - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries granted any rights or options to directors or supervisors or their respective associates to acquire any shares or debentures of the company, nor were such rights exercised[92](index=92&type=chunk) [Competing Interests](index=35&type=section&id=Competing%20Interests) During the reporting period and up to the date of this report, no directors, supervisors, substantial shareholders, or their close associates held interests in any business competing with the Group or had any conflicts of interest - During the reporting period and up to the date of this report, no director, supervisor, substantial shareholder of the company, or any of their respective close associates had any interest in any business that competes or may compete, directly or indirectly, with the Group's business, nor had any actual or potential conflict of interest with the Group[93](index=93&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[94](index=94&type=chunk) [Directors' Securities Transactions](index=35&type=section&id=Directors%27%20Securities%20Transactions) The Group has adopted a standard code for directors' securities transactions and confirmed that all directors complied with the required dealing standards throughout the reporting period - The Group has adopted a standard code for directors' securities transactions in accordance with Rules 5.48 to 5.67 of the GEM Listing Rules[95](index=95&type=chunk) - Following specific inquiries made to the directors, the company confirmed that all directors complied with the required dealing standards throughout the reporting period[95](index=95&type=chunk) [Audit Committee](index=36&type=section&id=Audit%20Committee) The company's Audit Committee, established in compliance with GEM Listing Rules, reviews and oversees financial reporting and internal control systems, and has reviewed the Group's unaudited condensed consolidated financial statements - The company has established an Audit Committee with written terms of reference in compliance with the GEM Listing Rules[96](index=96&type=chunk) - The primary responsibilities of the Audit Committee are to review and oversee the company's financial reporting process and internal control systems[96](index=96&type=chunk) - The Audit Committee, comprising four independent non-executive directors with Mr. Fan Xiaoliang as Chairman, has reviewed the Group's unaudited condensed consolidated financial statements for the reporting period[96](index=96&type=chunk) [Corporate Governance](index=36&type=section&id=Corporate%20Governance) The company complied with all applicable code provisions of the Corporate Governance Code, except for code provision D.2.5 (internal audit function), which is fulfilled through board-established arrangements and external consultants - The company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the GEM Listing Rules, except for code provision D.2.5 (internal audit function)[97](index=97&type=chunk) - The Group decided not to establish an internal audit department for the time being but has implemented sufficient measures to fulfill the internal audit function, including financial reporting and internal control principles established by the Board, and engaging external consultants for internal reviews[97](index=97&type=chunk) [Update on Directors' Information under Rule 17.50A(1) of the GEM Listing Rules](index=37&type=section&id=Update%20on%20Directors%27%20Information%20under%20Rule%2017.50A%281%29%20of%20the%20GEM%20Listing%20Rules) This section updates directors' information since the 2024 annual report, including Mr. Chen Zhengyong's appointment as Chairman and Mr. Li Zhonghua's re-designation as Executive Director and Vice Chairman - Mr. Chen Zhengyong was appointed as the Chairman of the Board, an authorized representative of the company, and the Chairman of the Nomination Committee, effective from May 30, 2025, and July 15, 2025, respectively[101](index=101&type=chunk) - Mr. Li Zhonghua was re-designated from a non-executive director to an executive director and appointed as the Vice Chairman of the Board, effective from May 30, 2025[101](index=101&type=chunk)

Interim Results Announcement [Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Singamas Container Holdings Limited's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income and the statement of financial position, with comparative data [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's turnover slightly increased, but profit attributable to equity holders and basic earnings per share decreased due to higher other comprehensive expenses and fair value loss on investment properties Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | Six Months Ended June 30, 2025 (USD thousands) | Six Months Ended June 30, 2024 (USD thousands) | | :--- | :--- | :--- | | Turnover | 251,627 | 242,864 | | Gross Profit | 38,107 | 36,678 | | Profit Before Tax | 20,537 | 22,535 | | Profit for the Period | 14,971 | 17,222 | | Profit Attributable to Equity Holders of the Company | 13,404 | 17,199 | | Basic Earnings Per Share | 0.56 US cents | 0.72 US cents | | Fair Value Loss on Equity Instruments at Fair Value Through Other Comprehensive Income | (3,157) | (960) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets significantly increased, primarily driven by property, plant and equipment growth, while current assets and liabilities decreased, leading to a reduction in net current assets Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Non-current Assets | 366,355 | 309,533 | | Current Assets | 459,346 | 530,689 | | Current Liabilities | 188,707 | 201,536 | | Net Current Assets | 270,639 | 329,153 | | Equity Attributable to Equity Holders of the Company | 554,225 | 558,992 | | Property, Plant and Equipment | 188,678 | 141,221 | | Inventories | 102,248 | 148,047 | | Bank and Other Borrowings (Current) | 46,112 | 27,719 | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the basis of preparation, significant accounting policies, income and expense breakdowns, segment performance, balance sheet item changes, and related accounting treatments, providing supplementary information for understanding financial data [Basis of Preparation and Significant Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules, consistent with prior year policies, with no significant impact from the newly adopted HKAS 21 amendment - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) - The application of a revised Hong Kong Financial Reporting Standard (amendments to HKAS 21) during this interim period did not have a significant impact on the Group's financial position and performance and/or the disclosures contained in these condensed consolidated financial statements[10](index=10&type=chunk) [Turnover](index=6&type=section&id=Turnover) Total turnover increased by **3.6%** to **USD 251,627 thousand**, primarily driven by manufacturing and leasing, with significant growth in other special container sales and operating lease income, despite a decline in dry container sales Turnover Composition | Business Segment | Six Months Ended June 30, 2025 (USD thousands) | Six Months Ended June 30, 2024 (USD thousands) | | :--- | :--- | :--- | | Manufacturing and Leasing Business | 236,237 | 228,730 | | Logistics Services | 15,390 | 14,134 | | **Total Turnover** | **251,627** | **242,864** | Revenue from Contracts with Customers Breakdown | Type of Goods or Services | Six Months Ended June 30, 2025 (USD thousands) | Six Months Ended June 30, 2024 (USD thousands) | | :--- | :--- | :--- | | Dry Container Sales | 135,350 | 165,306 | | Tank Container Sales | 10,491 | 10,344 | | Sales of Other Special Containers and Container Parts | 80,427 | 50,217 | | Operating Lease Income | 7,850 | 1,895 | [Segment Information](index=7&type=section&id=Segment%20Information) The Group operates in two segments: manufacturing and leasing, and logistics services; manufacturing and leasing remains the primary revenue source, but logistics services showed more significant performance growth - The Group is divided into two operating segments, manufacturing and leasing business and logistics services, and segment information is reported on this basis[13](index=13&type=chunk) Segment Turnover and Results | Metric | Manufacturing and Leasing Business (USD thousands) | Logistics Services (USD thousands) | Total (USD thousands) | | :--- | :--- | :--- | :--- | | **Six Months Ended June 30, 2025** | | | | | External Sales | 236,237 | 15,390 | 251,627 | | Segment Results | 11,849 | 2,872 | 14,721 | | **Six Months Ended June 30, 2024** | | | | | External Sales | 228,730 | 14,134 | 242,864 | | Segment Results | 12,385 | 1,967 | 14,352 | - Logistics services segment results increased by **45.9%** year-on-year (2025: **USD 2,872 thousand** vs 2024: **USD 1,967 thousand**)[15](index=15&type=chunk)[16](index=16&type=chunk) [Other Income](index=8&type=section&id=Other%20Income) Total other income decreased by **34.5%** to **USD 6,346 thousand**, mainly due to reduced interest income from bank deposits and dividend income, partially offset by increased government grants Other Income Details | Income Category | Six Months Ended June 30, 2025 (USD thousands) | Six Months Ended June 30, 2024 (USD thousands) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 3,364 | 3,876 | | Interest Income from Bank Deposits with Original Maturity Over Three Months | 535 | 2,873 | | Dividend Income | 585 | 1,173 | | Government Grants | 517 | 261 | | Rental Income from Leased Properties | 915 | 1,261 | | **Total** | **6,346** | **9,687** | [Other Gains and Losses](index=9&type=section&id=Other%20Gains%20and%20Losses) The period recorded other losses of **USD 1,682 thousand**, primarily due to a significant increase in fair value loss on investment properties to **USD 3,535 thousand**, mainly related to declining rental values in Hong Kong Other Gains and Losses Details | Item | Six Months Ended June 30, 2025 (USD thousands) | Six Months Ended June 30, 2024 (USD thousands) | | :--- | :--- | :--- | | Net Exchange Gain | 2,529 | 2,583 | | Fair Value Gain (Loss) on Financial Assets at Fair Value Through Profit or Loss | 13 | (73) | | Fair Value Loss on Investment Properties | (3,535) | (1,191) | | Impairment Loss under Expected Credit Loss Model, Net of Reversal | (406) | (883) | | **Total** | **(1,682)** | **489** | - The fair value loss on investment properties is mainly related to the Group's properties in Hong Kong, with a valuation decrease of approximately **USD 3,535 thousand** due to declining rental values[18](index=18&type=chunk) [Profit Before Tax](index=9&type=section&id=Profit%20Before%20Tax) Profit before tax decreased, primarily impacted by increased employee costs and depreciation expenses Deductions from Profit Before Tax | Item | Six Months Ended June 30, 2025 (USD thousands) | Six Months Ended June 30, 2024 (USD thousands) | | :--- | :--- | :--- | | Total Employee Costs | 46,076 | 45,380 | | Total Depreciation Expenses | 7,890 | 6,628 | | Cost of Inventories Recognized as Expense | 213,520 | 206,186 | [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) Income tax expense slightly increased, mainly due to a significant rise in deferred tax expense, despite a decrease in China enterprise income tax for the period - Chinese subsidiaries qualifying as high-tech enterprises enjoy a preferential corporate income tax rate of **15%**, while other Chinese subsidiaries are taxed at **25%**[20](index=20&type=chunk) Income Tax Expense Details | Item | Six Months Ended June 30, 2025 (USD thousands) | Six Months Ended June 30, 2024 (USD thousands) | | :--- | :--- | :--- | | China Enterprise Income Tax for the Period | 3,647 | 3,914 | | Deferred Tax - Expense for the Period | 1,478 | 863 | | **Income Tax Expense for the Period** | **5,566** | **5,313** | [Dividends](index=10&type=section&id=Dividends) The Board resolved to declare an interim dividend of **3 HK cents** per ordinary share, consistent with 2024, with the 2024 final dividend distributed in July 2025 - The Board of Directors resolved to declare an interim dividend of **3 HK cents** per ordinary share, totaling approximately **USD 9,164 thousand**, consistent with the corresponding period in 2024[22](index=22&type=chunk) - The final dividend of **5 HK cents** per ordinary share (approximately **USD 15,173 thousand**) for the year ended December 31, 2024, was distributed on July 18, 2025[22](index=22&type=chunk) [Basic Earnings Per Share](index=10&type=section&id=Basic%20Earnings%20Per%20Share) Basic earnings per share attributable to equity holders of the company was **0.56 US cents**, a decrease from **0.72 US cents** in the prior year, reflecting reduced profit for the period Basic Earnings Per Share Calculation | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit for the Purpose of Calculating Basic Earnings Per Share (USD thousands) | 13,404 | 17,199 | | Number of Ordinary Shares | 2,382,205,918 | 2,382,205,918 | | **Basic Earnings Per Share (US cents)** | **0.56** | **0.72** | [Movements in Property, Plant and Equipment](index=11&type=section&id=Movements%20in%20Property%2C%20Plant%20and%20Equipment) Property, plant and equipment increased by **USD 6,921 thousand** during the period, primarily for equipment upgrades, with significant inventory transferred to leasing assets and some properties reclassified as investment properties - During the six months ended June 30, 2025, property, plant and equipment increased by **USD 6,921 thousand**, used for upgrading the Group's existing manufacturing and logistics services equipment[24](index=24&type=chunk) - Inventories totaling **USD 55,381 thousand** were transferred to leasing assets, and **USD 8,013 thousand** of property, plant and equipment were transferred to investment properties[24](index=24&type=chunk) [Inventories](index=11&type=section&id=Inventories) As of June 30, 2025, total inventories decreased by **31.0%** to **USD 102,248 thousand**, mainly due to a significant reduction in finished goods, despite an increase in raw materials Inventories Composition | Inventory Category | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Raw Materials | 51,153 | 30,132 | | Work-in-progress | 22,057 | 30,316 | | Finished Goods | 29,038 | 87,599 | | **Total** | **102,248** | **148,047** | [Trade and Other Receivables](index=11&type=section&id=Trade%20and%20Other%20Receivables) Net trade receivables increased by **10.7%** to **USD 181,906 thousand**, driven by growth in third-party trade receivables and third-party finance lease receivables, with credit terms ranging from 30 to 120 days Net Trade and Other Receivables Composition | Category | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Trade Receivables from Third Parties | 96,217 | 58,714 | | Amounts Due from Fellow Subsidiaries | 847 | 395 | | Amounts Due from Immediate Holding Company and Operating Lease Receivables | 6,407 | 33,081 | | Third-Party Finance Lease Receivables | 79,292 | 72,521 | | Less: Provision for Credit Losses | (857) | (451) | | **Net Trade and Other Receivables** | **181,906** | **164,260** | - The Group has established a clear credit policy, with credit periods ranging from 30 to 120 days after technical acceptance certificate issuance/invoice date/delivery, depending on the customer's creditworthiness[27](index=27&type=chunk) [Prepayments and Other Receivables](index=13&type=section&id=Prepayments%20and%20Other%20Receivables) Prepayments and other receivables included a significant increase in deposits for raw material purchases from various suppliers, rising to **USD 33,163 thousand** - As of June 30, 2025, prepayments and other receivables included **USD 33,163 thousand** (December 31, 2024: **USD 12,599 thousand**) as deposits for raw material purchases from various suppliers[30](index=30&type=chunk) [Trade Payables](index=14&type=section&id=Trade%20Payables) Total trade payables decreased by **22.4%** to **USD 54,336 thousand**, primarily due to a significant reduction in payables aged 0-60 days Trade Payables Ageing Analysis | Ageing | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :--- | :--- | :--- | | 0 to 30 Days | 30,526 | 39,158 | | 31 to 60 Days | 8,525 | 14,153 | | 61 to 90 Days | 5,309 | 11,798 | | 91 to 120 Days | 2,709 | 1,706 | | Over 120 Days | 7,267 | 3,177 | | **Total** | **54,336** | **69,992** | [Share Capital](index=14&type=section&id=Share%20Capital) The company's issued and fully paid share capital remained unchanged during the period at **2,382,205,918 shares**, with a capital amount of **USD 268,149 thousand** - Issued and fully paid share capital remained at **2,382,205,918 shares** at the beginning and end of the period/year, with a capital amount of **USD 268,149 thousand**, consistent with the previous year-end[31](index=31&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) During the review period, the Group faced a challenging business environment but achieved a slight increase in turnover through business diversification, particularly in customized container and leasing growth, despite an overall profit decline [Overall Performance](index=14&type=section&id=Overall%20Performance) Despite challenges from oversupply, declining dry container average selling prices, and trade policy uncertainties, the company maintained business flexibility by developing customized containers, leading to a slight increase in consolidated turnover but a decrease in profit attributable to equity holders - During the review period, the Group operated in a challenging business environment due to oversupply in 2024 leading to inventory buildup and a declining trend in the average selling price of dry containers[32](index=32&type=chunk) - The Group's consolidated turnover slightly increased by **3.6%** to **USD 251,627 thousand**, but consolidated profit attributable to equity holders of the company decreased by **22.1%** to **USD 13,404 thousand**[33](index=33&type=chunk) - Progress in customized container business continued, with energy storage system containers and data center containers showing strong performance and potential to become significant growth drivers[32](index=32&type=chunk) [Manufacturing and Leasing Business](index=15&type=section&id=Manufacturing%20and%20Leasing%20Business) Manufacturing and leasing turnover slightly increased, but segment profit decreased; dry container sales volume and average selling price declined, yet profit margins were maintained due to lower raw material costs and strong growth in special containers, while leasing business remained stable Key Data for Manufacturing and Leasing Business | Metric | First Half 2025 | First Half 2024 | | :--- | :--- | :--- | | Turnover | USD 236,237 thousand | USD 228,730 thousand | | Segment Profit | USD 15,816 thousand | USD 18,169 thousand | | Total Sales Volume of Dry Containers and ISO Special Containers | Approx. 84,000 20-foot Equivalent Units (TEUs) | Approx. 93,000 20-foot Equivalent Units (TEUs) | | Average Selling Price of 20-foot Dry Containers | USD 1,845 | USD 1,918 | - Special and customized containers accounted for **40.2%** of manufacturing business segment turnover (2024 H1: **26.8%**), indicating business structure optimization[34](index=34&type=chunk) - Customized container business, particularly energy storage system containers and data center containers, saw significant growth in turnover and sales volume, with the Huizhou plant expansion expected to commence operations in the second half of the year[35](index=35&type=chunk)[32](index=32&type=chunk) - Leasing business remained robust, benefiting from the expansion of the leasing portfolio last year and longer-term leasing arrangements of three to over ten years with customers[35](index=35&type=chunk) [Logistics Services](index=15&type=section&id=Logistics%20Services) Logistics services performed well, with both turnover and segment profit increasing, primarily driven by higher warehousing demand due to market container oversupply and increased repair volumes Key Data for Logistics Services Business | Metric | First Half 2025 | First Half 2024 | | :--- | :--- | :--- | | Turnover | USD 15,390 thousand | USD 14,134 thousand | | Segment Profit | USD 4,721 thousand | USD 4,366 thousand | | 20-foot Equivalent Units (TEUs) Handled | Approx. 379,000 | Approx. 381,000 | | 20-foot Equivalent Units (TEUs) Repaired | 71,000 | 59,000 | | Average Daily Storage Volume | 30,000 20-foot Equivalent Units (TEUs) | 21,000 20-foot Equivalent Units (TEUs) | - Logistics services business performed well, primarily benefiting from increased warehousing demand at various depots due to market container oversupply[36](index=36&type=chunk) [Outlook](index=15&type=section&id=Outlook) The Group anticipates continued weak demand for dry containers in the second half, but strong demand for customized containers, especially energy storage and data center containers, with future focus on new energy investments, capacity expansion, global sales network, and comprehensive container solutions - The Group expects dry container demand to further weaken in the second half of the year, with overcapacity in the container shipping market putting pressure on freight rates and container demand[37](index=37&type=chunk) - Demand for customized containers, particularly data center containers and energy storage containers, continues to rise, with strong potential for energy storage containers driven by renewable energy needs[37](index=37&type=chunk) - Looking ahead, the Group will allocate more resources to the new energy segment to expand production capacity, establish overseas sales offices in suitable locations, and provide a wider range of container solutions to customers[38](index=38&type=chunk) - As a pioneer in the energy storage container market, Singamas possesses strong technical background and production scale advantages, and will expand its energy storage container business in the region through Green Tenaga in Singapore, a Taiwan sales office, and expanded facilities in Huizhou, while also expanding its global footprint[38](index=38&type=chunk) [Other Information](index=16&type=section&id=Other%20Information) This section covers corporate governance information, including interim dividend declaration, share transfer registration suspension, audit committee review, listed securities transactions, reserve transfers, and compliance with the Corporate Governance Code [Interim Dividend](index=16&type=section&id=Interim%20Dividend) The Board declared an interim dividend of **3 HK cents** per ordinary share for the six months ended June 30, 2025, consistent with the prior year, payable on September 26, 2025 - The Board is pleased to declare an interim dividend of **3 HK cents** per ordinary share for the six months ended June 30, 2025 (six months ended June 30, 2024: **3 HK cents** per ordinary share)[39](index=39&type=chunk) [Closure of Register of Members](index=16&type=section&id=Closure%20of%20Register%20of%20Members) To determine eligibility for the interim dividend, the company will suspend share transfer registration from September 17 to September 19, 2025 - The company will suspend the registration of share transfers from Wednesday, September 17, 2025, to Friday, September 19, 2025 (both days inclusive), during which no share transfers will be processed[40](index=40&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) The company's Audit Committee has reviewed the Group's accounting principles, internal controls, risk management, financial reporting, and the unaudited interim financial statements with management - The company's Audit Committee has reviewed the accounting principles and practices adopted by the Group with management, discussed matters related to audit, internal controls, risk management, and financial reporting, and reviewed the unaudited interim financial statements for the six months ended June 30, 2025[41](index=41&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the review period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[42](index=42&type=chunk) [Transfer to Reserves](index=16&type=section&id=Transfer%20to%20Reserves) During the period, a total of **USD 3,000** was transferred to the Group's statutory reserves in China, in accordance with current Chinese regulations and agreements - In accordance with current Chinese regulations and appropriation agreements of subsidiaries, associates, and joint ventures, a total of **USD 3,000** was transferred to the Group's statutory reserves in China during the period[43](index=43&type=chunk) [Corporate Governance Code](index=17&type=section&id=Corporate%20Governance%20Code) The company consistently complies with the Corporate Governance Code in Appendix C1 of the Listing Rules, with the Board Chairman and Chief Executive Officer roles held by the same person to strengthen leadership functions - The company has consistently adopted and complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[44](index=44&type=chunk) - Code Provision C.2.1 – Mr. Teo Siong Seng is both the Chairman of the Board and the Chief Executive Officer of the company; the Board believes this structure strengthens and unifies leadership functions, thereby facilitating effective and consistent decision-making and implementation[44](index=44&type=chunk) [Compliance with Model Code](index=17&type=section&id=Compliance%20with%20Model%20Code) All directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, during the review period - Following specific enquiries made to all directors, all directors confirmed their full compliance with the Model Code during the period[45](index=45&type=chunk) [Board of Directors](index=17&type=section&id=Board%20of%20Directors) This section lists the Board of Directors members as of the announcement date, including executive, non-executive, and independent non-executive directors - As of the date of this announcement, the directors are as follows: Mr. Teo Siong Seng, Ms. Siu Wai Yee, and Ms. Chung Pui Kuen as Executive Directors; Mr. Ng Wee Liam as Non-executive Director; and Mr. Ho Tak Sang, Mr. Lam Sze Kin, and Ms. Wong Sau Pik as Independent Non-executive Directors[46](index=46&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容所產生或 因依賴該等內容而引致的任何損失承擔任何責任。 Shanghai HeartCare Medical Technology Corporation Limited 上 海 心 瑋 醫 療 科 技 股 份 有 限 公 司 （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：6609） 截至2025年6月30日止六個月的中期業績公告 上海心瑋醫療科技股份有限公司董事會欣然公佈本集團截至2025年6月30日止 六個月的未經審計簡明綜合中期業績（經審計委員會審閱），連同2024年同期的 比較數字。 | 財務概要 | | | | | --- | --- | --- | --- | | | 截至2025年 | 截至2024年 | | | | 6月30日止 | 6月30日止 | | | | 六個月 | 六個月 | 同比變動 | | | 人民幣千元 | 人民幣千元 | | | | （未經審計）（未經審計） | | | | ...

（在中華人民共和國註冊成立的股份有限公司） H股代號：1816 A股代號：003816 融合潔淨能源 締造綠色生活 2025中期報告 中廣核電力於2014年3月25日成立，2014年12月10日於香港聯交所主板上 市，並於2019年8月26日於深交所上市，是中廣核核能發電的唯一平台，公司 致力於安全高效、穩定可靠、清潔低碳的核能電力與能源供應，以及與之相 關的核能專業服務。 於本報告中，我們將闡述本集團截至2025年6月30日止六個月未經審計之合併 中期業績，連同2024年同期的比較數字，並概述為實現發展戰略而取得的進 展。 除本報告另有界定外，本報告所用詞彙與本公司《2024年度報告》所界定者具 有相同涵義。本報告中「子公司」與上市規則定義下的「附屬公司」具有相同含 義。本報告分別以中英文兩種文字編製，如中英文版本有任何歧義，以中文 版為準。 目錄 | 中期業績摘要 | 2 | | --- | --- | | 財務摘要 | 4 | | 股東價值 | 5 | | 財務、資產與投資 | 8 | | 業務表現與展望 | 15 | | 公司治理 | 34 | | 審閱報告 | 43 | | 合併資產負債表 | 44 ...