[Company Information and Disclaimer](index=2&type=section&id=Company%20Information%20and%20Disclaimer) This section covers company information, GEM market disclaimers, and directors' responsibility statement [GEM Market Characteristics](index=2&type=section&id=GEM%20Market%20Characteristics) The GEM market is designed for small and medium-sized companies, carrying higher investment risks, potential market volatility, and lower liquidity - The GEM market is positioned as a listing platform for small and medium-sized companies, entailing **higher investment risks**[2](index=2&type=chunk)[4](index=4&type=chunk) - Potential risks include significant market volatility for GEM securities and no guarantee of high liquidity[3](index=3&type=chunk)[5](index=5&type=chunk) [Directors' Responsibility Statement](index=3&type=section&id=Directors'%20Responsibility%20Statement) The Board of Directors collectively and individually assumes full responsibility for the accuracy, completeness, and non-misleading nature of this report's content, confirming compliance with GEM Listing Rules - Directors confirm that the information in this report is accurate, complete, and free from misleading or fraudulent elements in all material aspects[8](index=8&type=chunk)[9](index=9&type=chunk) - The content of this report complies with the disclosure requirements of the GEM Listing Rules[8](index=8&type=chunk)[9](index=9&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the reporting period [Condensed Consolidated Statement of Profit or Loss](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company transitioned from loss to profit, driven by significant revenue growth and a reversal of expected credit loss provisions, despite a substantial increase in income tax expense Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator (HKD thousand) | 2025 (Unaudited) | 2024 (Unaudited) | Change (%) | | :--------------------- | :--------------- | :--------------- | :--------- | | Revenue | 14,493 | 5,968 | +142.8% | | Other income and net other gains | 1,064 | 3,820 | -72.2% | | Administrative and other expenses | (12,862) | (12,464) | +3.2% | | Reversal/(provision) for expected credit losses | 8,860 | (2,460) | N/A | | Finance costs | (3,173) | (4,643) | -31.7% | | Profit/(loss) before income tax | 8,382 | (9,779) | N/A | | Income tax expense | (16,313) | (3,427) | +376.0% | | Loss for the period | (7,931) | (13,206) | -39.9% | | Loss per share attributable to owners of the Company (HK cents) | (8.68) | (29.53) | -70.6% | [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive expenses significantly decreased, primarily due to a narrower loss for the period and positive foreign exchange differences Condensed Consolidated Statement of Comprehensive Income Key Data (For the six months ended June 30) | Indicator (HKD thousand) | 2025 (Unaudited) | 2024 (Unaudited) | Change (%) | | :--------------------- | :--------------- | :--------------- | :--------- | | Loss for the period | (7,931) | (13,206) | -39.9% | | Other comprehensive income/(expenses) | 3,044 | (4,124) | N/A | | Total comprehensive expenses for the period | (4,887) | (17,330) | -71.8% | | Total comprehensive (expenses)/income attributable to owners of the Company | (6,623) | (15,215) | -56.4% | - In the first half of 2025, exchange differences arising from the translation of financial statements of overseas operations amounted to **HKD 3,451 thousand**, a significant improvement from **(HKD 4,127 thousand)** in the same period of 2024[17](index=17&type=chunk) - Reclassification of exchange reserve upon disposal of subsidiaries and joint ventures resulted in **(HKD 407 thousand)**[17](index=17&type=chunk) [Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company experienced a significant decrease in non-current assets but an increase in current assets, leading to higher net current assets, while total assets less current liabilities and net assets both declined Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator (HKD thousand) | 2025 (Unaudited) | 2024 (Audited) | Change (%) | | :--------------------- | :--------------- | :------------- | :--------- | | Non-current assets | 16,913 | 37,892 | -55.4% | | Current assets | 133,509 | 117,753 | +13.4% | | Current liabilities | 74,621 | 74,666 | -0.1% | | Net current assets | 58,888 | 43,087 | +36.7% | | Total assets less current liabilities | 75,801 | 80,979 | -6.4% | | Non-current liabilities | 8,540 | 8,831 | -3.3% | | Net assets | 67,261 | 72,148 | -6.8% | | Equity attributable to owners of the Company | 32,894 | 39,517 | -16.7% | | Non-controlling interests | 34,367 | 32,631 | +5.3% | | Total equity | 67,261 | 72,148 | -6.8% | - Investment properties within non-current assets were entirely disposed of in the first half of 2025, decreasing from **HKD 2,043 thousand** to **HKD 0**[20](index=20&type=chunk) - Deferred tax assets significantly decreased from **HKD 26,656 thousand** to **HKD 11,675 thousand**[20](index=20&type=chunk) - Customer loans (non-current) decreased from **HKD 4,423 thousand** to **HKD 762 thousand**, while customer loans (current) increased from **HKD 44,361 thousand** to **HKD 48,342 thousand**[20](index=20&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the Company decreased due to loss for the period and changes in exchange reserves, while non-controlling interests increased Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30) | Indicator (HKD thousand) | 2025 (Unaudited) | 2024 (Unaudited) | | :--------------------- | :--------------- | :--------------- | | Equity attributable to owners of the Company at beginning of period | 39,517 | 51,136 | | Loss for the period | (8,149) | (12,030) | | Other comprehensive income/(expenses) | 1,526 | (3,185) | | Equity attributable to owners of the Company at end of period | 32,894 | 41,173 | | Non-controlling interests at end of period | 34,367 | 36,261 | | Total equity at end of period | 67,261 | 77,434 | - In the first half of 2025, accumulated losses attributable to owners of the Company increased from **(HKD 1,106,796 thousand)** at the beginning of the period to **(HKD 1,115,285 thousand)** at the end of the period[24](index=24&type=chunk) - In the first half of 2024, the company raised **HKD 7,511 thousand** through the placement of new shares[26](index=26&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities decreased, but net cash from investing activities turned positive, and net cash used in financing activities significantly reduced, resulting in a net increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator (HKD thousand) | 2025 (Unaudited) | 2024 (Unaudited) | Change (%) | | :--------------------- | :--------------- | :--------------- | :--------- | | Net cash generated from operating activities | 12,564 | 18,707 | -32.8% | | Net cash generated from investing activities | 2,049 | 0 | N/A | | Net cash used in financing activities | (4,165) | (21,689) | -80.8% | | Net increase/(decrease) in cash and cash equivalents | 10,448 | (2,982) | N/A | | Cash and cash equivalents at end of period | 84,502 | 88,250 | -4.2% | - Cash inflow from investing activities primarily stemmed from proceeds of **HKD 2,043 thousand** from the disposal of investment properties[28](index=28&type=chunk) - The decrease in cash outflow from financing activities was mainly due to higher amounts for redemption of convertible bonds and promissory notes in the same period of 2024[28](index=28&type=chunk) [Notes to the Financial Statements](index=14&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the basis of preparation, accounting policies, and specific items within the financial statements [General Information](index=14&type=section&id=General%20Information) The company is incorporated in Bermuda, listed on GEM of the Stock Exchange, primarily engaged in investment holding, with group businesses including short-term financing services and IT solutions and consulting for the financial industry - The company is incorporated in **Bermuda**, with shares listed on the **GEM of the Stock Exchange**[30](index=30&type=chunk)[32](index=32&type=chunk) - The Group's principal activities include providing **short-term financing services** and **IT solutions and consulting services** for the financial industry in Mainland China and Hong Kong[31](index=31&type=chunk)[33](index=33&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=15&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The interim financial statements are prepared in accordance with HKAS 34, using a historical cost basis (except for investment properties), consistent with 2024 annual report policies, with no significant impact from new accounting standards adoption - The interim financial statements are prepared in accordance with **HKAS 34** and have been reviewed by the Audit Committee[34](index=34&type=chunk)[42](index=42&type=chunk) - The statements are prepared on a **historical cost basis**, except for investment properties which are stated at fair value[35](index=35&type=chunk)[38](index=38&type=chunk) - The adoption of new/revised HKFRS accounting standards has had **no significant impact** on the results and financial position for the current and prior accounting periods[45](index=45&type=chunk)[45](index=45&type=chunk)[48](index=48&type=chunk) [Segment Information](index=18&type=section&id=Segment%20Information) The Group has identified only one operating segment under HKFRS 8, with revenue primarily from Mainland China and Hong Kong, where Hong Kong's revenue significantly increased in the first half of 2025 - The Group has only **one operating segment**, and no further segment information analysis is presented[49](index=49&type=chunk)[51](index=51&type=chunk) Revenue by Geographical Location (HKD thousand) | Region | 2025 (Unaudited) | 2024 (Unaudited) | Change (%) | | :----------- | :--------------- | :--------------- | :--------- | | Hong Kong | 11,963 | 800 | +1395.4% | | Mainland China | 2,530 | 5,168 | -51.0% | | **Total** | **14,493** | **5,968** | **+142.8%** | [Revenue, Other Income and Net Other Gains and Losses](index=20&type=section&id=Revenue%2C%20Other%20Income%20and%20Net%20Other%20Gains%20and%20Losses) Total revenue significantly increased in the first half of 2025, primarily due to settlement gains from non-performing loan assets and increased IT solution and consulting income; however, net other income and gains decreased due to early redemption gains from convertible bonds in the prior period Revenue Components (HKD thousand) | Revenue Source | 2025 (Unaudited) | 2024 (Unaudited) | Change (%) | | :------------------------------- | :--------------- | :--------------- | :--------- | | Interest income from customer loans | 3,193 | 5,168 | -38.2% | | Settlement gains from non-performing loan assets | 8,500 | 0 | N/A | | IT solution and consulting income | 2,800 | 800 | +250.0% | | **Total Revenue** | **14,493** | **5,968** | **+142.8%** | Other Income and Net Other Gains Components (HKD thousand) | Other Income and Net Other Gains | 2025 (Unaudited) | 2024 (Unaudited) | Change (%) | | :----------------------------- | :--------------- | :--------------- | :--------- | | Net exchange differences | (50) | (250) | -80.0% | | Bank interest income | 464 | 754 | -38.5% | | Gain on early redemption of convertible bonds | 0 | 3,099 | -100.0% | | Gain on early redemption of promissory notes | 166 | 91 | +82.4% | | Gain on disposal of subsidiaries and joint ventures | 417 | 0 | N/A | | **Total** | **1,064** | **3,820** | **-72.2%** | - Disposal of Tonghe Investment Limited, an indirect wholly-owned subsidiary, and its subsidiaries and joint ventures, generated a gain of approximately **HKD 417,000**[60](index=60&type=chunk) [Finance Costs](index=22&type=section&id=Finance%20Costs) Finance costs significantly decreased in the first half of 2025, primarily due to zero effective interest expense on convertible bonds and an increase in interest expense on promissory notes Finance Costs Components (HKD thousand) | Finance Cost Source | 2025 (Unaudited) | 2024 (Unaudited) | Change (%) | | :----------------------------------- | :--------------- | :--------------- | :--------- | | Effective interest expense on convertible bonds | 0 | 4,321 | -100.0% | | Effective interest expense on promissory notes | 3,128 | 269 | +1063.2% | | Effective interest expense on lease liabilities | 45 | 53 | -15.1% | | **Total** | **3,173** | **4,643** | **-31.7%** | [Profit/(Loss) Before Income Tax](index=23&type=section&id=Profit%2F%28Loss%29%20Before%20Income%20Tax) In the first half of 2025, the company achieved a profit before income tax, reversing the loss from the same period in 2024, despite an increase in staff costs Profit/(Loss) Before Income Tax Related Expenses (HKD thousand) | Expense Category | 2025 (Unaudited) | 2024 (Unaudited) | Change (%) | | :------------------------------------- | :--------------- | :--------------- | :--------- | | Staff costs (excluding directors' emoluments) | 7,582 | 6,313 | +20.1% | | Auditor's remuneration | 480 | 569 | -15.6% | | Cost of services | 1,566 | 0 | N/A | | Depreciation of property, plant and equipment | 157 | 125 | +25.6% | | Depreciation of right-of-use assets | 247 | 543 | -54.5% | | Short-term or low-value lease payments | 78 | 75 | +4.0% | [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense) Income tax expense significantly increased in the first half of 2025, primarily due to a substantial rise in deferred tax expense and contributions from current tax and dividend withholding tax in Mainland China Income Tax Expense Components (HKD thousand) | Tax Category | 2025 (Unaudited) | 2024 (Unaudited) | Change (%) | | :----------------------------- | :--------------- | :--------------- | :--------- | | Mainland China current tax expense | 369 | 836 | -55.9% | | Dividend withholding tax | 547 | 1,629 | -66.4% | | Deferred tax expense | 15,397 | 918 | +1577.2% | | **Total Income Tax Expense** | **16,313** | **3,427** | **+376.0%** | - No provision for Hong Kong profits tax was made due to estimated tax losses available to offset taxable profits[69](index=69&type=chunk) - Mainland China subsidiaries are subject to a corporate income tax rate of **25%**, with some small-profit enterprises enjoying a preferential rate of **20%**[69](index=69&type=chunk)[70](index=70&type=chunk) - Dividends distributed from profits of foreign-invested enterprises in Mainland China are subject to a **10%** withholding income tax[71](index=71&type=chunk)[72](index=72&type=chunk) [Dividends](index=26&type=section&id=Dividends) The Board of Directors does not recommend the payment of any dividend for the first half of 2025 - No dividend was recommended for payment for the first half of 2025 or the corresponding period in 2024[73](index=73&type=chunk)[77](index=77&type=chunk) [Loss Per Share](index=26&type=section&id=Loss%20Per%20Share) Both basic and diluted loss per share narrowed in the first half of 2025, primarily due to a reduction in loss attributable to owners of the Company Loss Per Share Calculation Data | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :------------------------------------------------------------ | :--------------- | :--------------- | | Loss attributable to owners of the Company (HKD thousand) | (8,149) | (12,030) | | Weighted average number of ordinary shares for basic loss per share (thousand shares) | 93,841 | 40,733 | | Basic and diluted loss per share (HK cents) | (8.68) | (29.53) | - There were no potential dilutive ordinary shares in the first half of 2025, and convertible bonds had an anti-dilutive effect in the same period of 2024, thus basic and diluted loss per share were equal[76](index=76&type=chunk)[78](index=78&type=chunk) [Right-of-Use Assets](index=29&type=section&id=Right-of-Use%20Assets) The Group obtains right-of-use assets for office premises and staff quarters through lease arrangements, with no new additions in the first half of 2025 and a decrease in total lease cash outflows - No new right-of-use assets were added in the first half of 2025[85](index=85&type=chunk)[88](index=88&type=chunk) - Total cash outflow for leases in the first half of 2025 was approximately **HKD 244,000**, lower than **HKD 455,000** in the same period of 2024[85](index=85&type=chunk)[88](index=88&type=chunk) - As of June 30, 2025, the weighted average effective interest rate for lease liabilities was **3.55%** (December 31, 2024: **3.63%**)[86](index=86&type=chunk)[88](index=88&type=chunk) [Investment Properties](index=30&type=section&id=Investment%20Properties) The Group disposed of all investment properties in the first half of 2025, resulting in zero holdings Movements in Investment Properties (HKD thousand) | Indicator | January 1 to June 30, 2025 (Unaudited) | Year ended December 31, 2024 (Audited) | | :-------- | :------------------------------------- | :------------------------------------- | | Beginning of period | 2,043 | 2,269 | | Disposals | (2,043) | 0 | | End of period | 0 | 2,043 | - On February 27, 2025, the company disposed of a residential property in Beijing for a total consideration of approximately **HKD 2,043,000**, with no significant gain or loss on disposal recognized[91](index=91&type=chunk)[92](index=92&type=chunk) [Assets Acquired in Settlement of Debts](index=31&type=section&id=Assets%20Acquired%20in%20Settlement%20of%20Debts) The Group's assets acquired in settlement of debts primarily consist of real estate properties in Beijing, with their estimated market value slightly increasing in the first half of 2025 Carrying Value of Assets Acquired in Settlement of Debts (HKD thousand) | Asset Category | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :----------------------------------------- | :------------------------ | :------------------------ | | Repossessed properties - real estate properties in Beijing | 1,622 | 1,575 | - As of June 30, 2025, the estimated market value of assets acquired in settlement of debts was approximately **HKD 1,648,000** (December 31, 2024: approximately **HKD 1,592,000**)[94](index=94&type=chunk)[95](index=95&type=chunk) - The Group plans to dispose of these properties, acquired through court proceedings, within a reasonable timeframe, but not expected to be completed within 12 months from the end of the reporting period[94](index=94&type=chunk)[95](index=95&type=chunk) [Customer Loans](index=32&type=section&id=Customer%20Loans) As of June 30, 2025, both gross customer loans and loss provisions significantly decreased, leading to a slight increase in net customer loans; the Group uses an ECL model to assess credit risk, classifying loans by days past due Gross and Net Customer Loans (HKD thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change (%) | | :------------------- | :------------------------ | :------------------------ | :--------- | | Gross customer loans | 101,115 | 153,890 | -34.3% | | Less: Loss allowance | (52,011) | (105,106) | -50.5% | | Net customer loans | 49,104 | 48,784 | +0.66% | [Credit Quality Analysis](index=33&type=section&id=Credit%20Quality%20Analysis) The credit quality of customer loans improved, with a significant decrease in the proportion of credit-impaired loans overdue by more than 90 days Customer Loan Credit Quality Analysis (HKD thousand) | Category | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change (%) | | :-------------------------------------- | :------------------------ | :------------------------ | :--------- | | Neither past due nor credit-impaired | 38,133 | 36,220 | +5.3% | | Past due but not credit-impaired (within 30 days) | 5,615 | 0 | N/A | | Past due but not credit-impaired (30-90 days) | 2,278 | 4,753 | -52.1% | | Past due and credit-impaired (>90 days) | 55,089 | 112,917 | -51.2% | | **Total** | **101,115** | **153,890** | **-34.3%** | - Management considers loans overdue by more than **90 days** as credit-impaired[101](index=101&type=chunk)[104](index=104&type=chunk) [Movements in Expected Credit Loss Provision for Customer Loans](index=35&type=section&id=Movements%20in%20Expected%20Credit%20Loss%20Provision%20for%20Customer%20Loans) In the first half of 2025, the expected credit loss provision for customer loans significantly decreased, primarily due to reversals and disposals Movements in Expected Credit Loss Provision for Customer Loans (HKD thousand) | Movement Item | January 1 to June 30, 2025 (Unaudited) | Year ended December 31, 2024 (Audited) | | :---------------------------- | :------------------------------------- | :------------------------------------- | | Beginning of period | 105,106 | 109,606 | | Charged/(credited) to profit or loss | (8,860) | 5,257 | | Disposals | (45,791) | (6,132) | | Exchange adjustments | 1,556 | (3,625) | | End of period | 52,011 | 105,106 | - As of June 30, 2025, the expected credit loss provision represented approximately **51.4%** of the gross carrying amount of customer loans (December 31, 2024: approximately **68.3%**), indicating a decrease in credit risk coverage[108](index=108&type=chunk)[110](index=110&type=chunk) [Amounts Due to Directors](index=37&type=section&id=Amounts%20Due%20to%20Directors) Amounts due to directors are unsecured, interest-free, and repayable on demand - Nature of amounts due to directors: **unsecured**, **interest-free**, and **repayable on demand**[113](index=113&type=chunk)[114](index=114&type=chunk) [Amounts Due to Shareholders](index=37&type=section&id=Amounts%20Due%20to%20Shareholders) Amounts due to shareholders are unsecured, interest-free, and repayable on demand - Nature of amounts due to shareholders: **unsecured**, **interest-free**, and **repayable on demand**[115](index=115&type=chunk) [Promissory Notes](index=37&type=section&id=Promissory%20Notes) In the first half of 2025, both the carrying amount and face value of promissory notes decreased, as the company early redeemed some promissory notes through cash settlement Movements in Promissory Notes (HKD thousand) | Movement Item | January 1 to June 30, 2025 (Unaudited) | Year ended December 31, 2024 (Audited) | | :----------------------------- | :------------------------------------- | :------------------------------------- | | Carrying amount at beginning of period | 73,804 | 13,660 | | Effective interest expense | 3,128 | 2,919 | | Early redemption | (4,226) | (8,507) | | Carrying amount at end of period | 72,367 | 73,804 | | Face value at end of period | 68,325 | 72,385 | - On March 26, 2025, the company early redeemed promissory notes with an aggregate principal amount of **HKD 4,060,000**, recognizing a gain of approximately **HKD 166,000**[119](index=119&type=chunk)[120](index=120&type=chunk) - After the redemption, the remaining outstanding principal amount of promissory notes was approximately **HKD 59,605,000**[119](index=119&type=chunk)[120](index=120&type=chunk) [Share Capital](index=39&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued share capital remained stable, following the issuance of new shares through a placement in 2024 Issued Share Capital (thousand shares/HKD thousand) | Indicator | Number of Shares (thousand shares) | Amount (HKD thousand) | | :-------------------------------------- | :------------------------------- | :-------------------- | | Issued and fully paid as at January 1, 2024 | 78,201 | 782 | | New shares issued on placement | 15,640 | 156 | | Issued and fully paid as at June 30, 2025 | 93,841 | 938 | - On February 28, 2024, the company issued **15,640,000** new ordinary shares through a placement, raising gross proceeds of approximately **HKD 7,820,000**, with net proceeds of approximately **HKD 7,511,000** credited to the share premium account[122](index=122&type=chunk)[124](index=124&type=chunk) [Related Party Transactions](index=40&type=section&id=Related%20Party%20Transactions) The Group engaged in lease payments and customer loan disposal transactions with related parties - Lease payments of approximately **HKD 118,000** were made to non-controlling interests of a non-wholly owned subsidiary in the first half of 2025[123](index=123&type=chunk)[125](index=125&type=chunk) - Customer loans were disposed of to a registered shareholder of a subsidiary for a consideration of approximately **HKD 1,027,000** in the first half of 2025[126](index=126&type=chunk)[128](index=128&type=chunk) [Events After the Reporting Period](index=41&type=section&id=Events%20After%20the%20Reporting%20Period) After the reporting period, Beijing Zhicheng Zhuoshi Management Consulting Services Co., Ltd. completed its deregistration - Beijing Zhicheng Zhuoshi Management Consulting Services Co., Ltd. completed its deregistration on **July 31, 2025**[127](index=127&type=chunk)[129](index=129&type=chunk) [Management Discussion and Analysis](index=42&type=section&id=Management%20Discussion%20and%20Analysis) This section presents management's discussion and analysis of the Group's business, financial performance, outlook, and resources [Business and Financial Review](index=42&type=section&id=Business%20and%20Financial%20Review) In the first half of 2025, the Group's total revenue significantly increased, driven by settlement gains from non-performing loan assets and expansion of IT solution services; loss for the period narrowed, but income tax expense substantially rose - The Group primarily engages in **short-term financing services** and **IT solutions and consulting services** for the financial industry[130](index=130&type=chunk)[133](index=133&type=chunk) - Total revenue increased by **142.8%** year-on-year to approximately **HKD 14,493,000**, mainly due to settlement gains from non-performing loan assets in Hong Kong's short-term financing services and expansion of IT solution services[131](index=131&type=chunk)[133](index=133&type=chunk) - Net other income and gains decreased by **72.2%** year-on-year to approximately **HKD 1,064,000**, primarily due to gains from early redemption of convertible bonds in the same period of 2024[132](index=132&type=chunk)[134](index=134&type=chunk) - Administrative and other expenses slightly increased by **3.2%** to approximately **HKD 12,862,000**, mainly due to higher staff costs[136](index=136&type=chunk)[139](index=139&type=chunk) - Expected credit loss provision for customer loans saw a reversal of approximately **HKD 8,860,000**, compared to a provision of **HKD 2,460,000** in the same period of 2024, primarily due to a decrease in gross customer loan balances[137](index=137&type=chunk)[139](index=139&type=chunk) - Finance costs decreased by **31.7%** year-on-year to approximately **HKD 3,173,000**, mainly due to a reduction in overall debt, including early redemption of convertible bonds and promissory notes[138](index=138&type=chunk)[139](index=139&type=chunk) - Income tax expense significantly increased by **376.0%** to approximately **HKD 16,313,000**, primarily due to the reversal of temporary differences related to expected credit loss provisions arising from the disposal of customer loans[140](index=140&type=chunk)[143](index=143&type=chunk) - Loss attributable to owners of the Company narrowed by **32.2%** to approximately **HKD 8,149,000**[141](index=141&type=chunk)[143](index=143&type=chunk) [Outlook](index=44&type=section&id=Outlook) Facing challenges of stable Chinese economic operation but intensified competition in short-term financing, the Group plans to enhance competitiveness through digital transformation, AI intelligent service platform development, and IT solution expansion, while actively seeking new business opportunities - Mainland China's economy is generally stable, but competition in the short-term financing sector is intensifying, making the pawn and micro-loan environment increasingly challenging[142](index=142&type=chunk)[144](index=144&type=chunk) - The Group plans to leverage IT technologies such as blockchain, AI, and large models to drive digital transformation, exploring innovative applications of **Real World Assets (RWA)** in digital finance[145](index=145&type=chunk)[146](index=146&type=chunk) - Self-developed **AI intelligent service platform** will cover application scenarios such as intelligent data processing, intelligent risk control, intelligent settlement, and intelligent customer service[145](index=145&type=chunk)[146](index=146&type=chunk) - Integrate IT technical solutions into traditional short-term financing services, and leverage short-term financing services and intelligent service platform development to upgrade and expand business scope[145](index=145&type=chunk)[146](index=146&type=chunk) - The goal is to enhance service capabilities and market competitiveness, translating operational efficiency and competitive advantages into revenue growth and strengthening the company's valuation potential[145](index=145&type=chunk)[146](index=146&type=chunk) - While focusing on existing short-term financing businesses, the Group will actively seek new business opportunities in Mainland China and/or Hong Kong to diversify revenue streams[147](index=147&type=chunk)[151](index=151&type=chunk) [Material Investments, Acquisitions and Disposals](index=46&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) Other than as disclosed in this report, the Group did not undertake any other material investments, acquisitions, or disposals during the reporting period - During the interim period, the Group did not undertake any other material investments, acquisitions, or disposals of subsidiaries or associates[148](index=148&type=chunk)[152](index=152&type=chunk) [Future Plans for Material Investments and Capital Assets](index=46&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) Other than as disclosed in this report, the Group currently has no definite plans for material investments or capital assets - The Group currently has no definite intentions or specific plans for any material investments or capital assets[149](index=149&type=chunk)[153](index=153&type=chunk) [Liquidity and Financial Resources](index=46&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and cash equivalents increased, but both the gearing ratio and debt ratio rose; future funding needs will be met through internal cash flow and external financing Liquidity and Financial Resources Key Data (HKD thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change | | :--------------------- | :------------------------ | :------------------------ | :----- | | Total other debts | 72,367 | 73,804 | -1.9% | | Cash and cash equivalents | 84,502 | 72,243 | +16.9% | | Gearing ratio | 2.2 | 1.9 | +0.3 | | Debt ratio | 0.55 | 0.54 | +0.01 | - The Group will fund its future cash flow requirements through internal cash flows generated from operations and external fundraising activities in the capital market[155](index=155&type=chunk)[158](index=158&type=chunk) - To adjust its capital structure, the Group may adjust dividends, issue new shares, or dispose of assets to reduce debt[157](index=157&type=chunk)[158](index=158&type=chunk) [Capital Structure](index=48&type=section&id=Capital%20Structure) The Group had no bank borrowings during the reporting period, with promissory notes being the primary form of debt, some of which were early redeemed - As of June 30, 2025, and December 31, 2024, the Group had **no outstanding bank borrowings**[159](index=159&type=chunk)[161](index=161&type=chunk) - Promissory notes are the primary form of debt, with an aggregate principal amount of **HKD 4,060,000** of promissory notes early redeemed through cash settlement in the first half of 2025[160](index=160&type=chunk)[162](index=162&type=chunk)[167](index=167&type=chunk)[169](index=169&type=chunk) Outstanding Principal Amount of Promissory Notes (HKD) | Issue Date | Annual Interest Rate | Principal Repayment Due Date | Principal Amount as at January 1, 2025 | Principal Amount Redeemed | Outstanding Principal Amount as at June 30, 2025 | | :------------- | :------------------- | :--------------------------- | :------------------------------------- | :------------------------ | :----------------------------------------------- | | August 5, 2024 | 8% | August 4, 2026 | 6,720,000 | – | 6,720,000 | | August 5, 2024 | 8% | December 31, 2025 | 63,664,650 | (4,060,000) | 59,604,650 | | December 23, 2024 | 7% | December 23, 2025 | 2,000,000 | – | 2,000,000 | [Fund Raising Activities](index=50&type=section&id=Fund%20Raising%20Activities) The Group did not undertake any fundraising activities in the first half of 2025, and funds raised through new share placement in 2024 were fully utilized - No fundraising activities were undertaken in the first half of 2025[170](index=170&type=chunk)[171](index=171&type=chunk) - Net proceeds of approximately **HKD 7,511,000** raised from the placement of **15,640,000** ordinary shares on February 28, 2024, were fully utilized by the year ended December 31, 2024[168](index=168&type=chunk)[170](index=170&type=chunk) [Foreign Exchange Risk](index=51&type=section&id=Foreign%20Exchange%20Risk) The Group's foreign exchange risk is minimal, as most business transactions are denominated in RMB; currently, there is no hedging policy, but it will be closely monitored, and hedging instruments considered in the future - The Group's foreign exchange risk is **minimal**, as most business transactions, assets, and liabilities are denominated in their respective functional currencies, such as RMB[172](index=172&type=chunk)[175](index=175&type=chunk) - RMB is not freely convertible and is subject to foreign exchange controls by the Mainland Chinese government[173](index=173&type=chunk)[175](index=175&type=chunk) - Currently, there is **no foreign exchange hedging policy**, but it will be closely monitored, and hedging instruments will be considered when appropriate[173](index=173&type=chunk)[175](index=175&type=chunk) [Pledge of Group Assets](index=52&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, and December 31, 2024, the Group had no pledge of any assets - The Group had **no pledge of any assets** at the end of the reporting period or the previous year-end[176](index=176&type=chunk)[179](index=179&type=chunk) [Employees Information and Remuneration Policy](index=52&type=section&id=Employees%20Information%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's employee headcount increased, with competitive remuneration and benefits, and discretionary year-end bonuses based on performance - As of June 30, 2025, the Group employed a total of **46 staff** (December 31, 2024: **39 staff**)[177](index=177&type=chunk)[180](index=180&type=chunk) - Staff remuneration and benefits are maintained at a **competitive level**, with discretionary year-end bonuses based on performance[177](index=177&type=chunk)[180](index=180&type=chunk) - Staff costs (excluding directors' emoluments) for the first half of 2025 were approximately **HKD 7,582,000** (same period in 2024: approximately **HKD 6,313,000**)[177](index=177&type=chunk)[180](index=180&type=chunk) [Other Information](index=53&type=section&id=Other%20Information) This section provides various other disclosures, including contingent liabilities, directors' and substantial shareholders' interests, and corporate governance [Contingent Liabilities](index=53&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - The Group had **no material contingent liabilities** at the end of the reporting period or the previous year-end[182](index=182&type=chunk)[185](index=185&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=53&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of June 30, 2025, no directors or chief executives of the company held any disclosable interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations - As of June 30, 2025, no directors or chief executives had any interests or short positions in the shares, underlying shares, and debentures of the company or its associated corporations required to be disclosed under the **SFO**[184](index=184&type=chunk)[187](index=187&type=chunk) [Rights to Acquire Shares or Debentures by Directors](index=54&type=section&id=Rights%20to%20Acquire%20Shares%20or%20Debentures%20by%20Directors) During the reporting period, neither the company nor its subsidiaries were involved in any arrangements enabling directors or chief executives to acquire benefits through the acquisition of company shares or debt securities - During the interim period, no directors, their spouses, or minor children had any rights to subscribe for securities of the company, nor did they exercise any such rights[188](index=188&type=chunk)[190](index=190&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=54&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Mr. Ye Zhiqian and his wholly-owned company, Hengxin Zhitou Technology (Hong Kong) Limited, held a **28.35%** long position in the company's issued share capital Substantial Shareholders' Shareholding (As of June 30, 2025) | Name of Substantial Shareholder | Nature of Interest/Capacity | Number of Ordinary Shares Held | Percentage of Company's Issued Shares | | :------------------------------ | :-------------------------- | :----------------------------- | :------------------------------------ | | Mr. Ye Zhiqian | Interest in controlled corporation | 26,600,000 | 28.35% | | Hengxin Zhitou Technology (Hong Kong) Limited | Beneficial owner | 26,600,000 | 28.35% | - Mr. Ye Zhiqian is deemed to be interested in the shares held by Hengxin Zhitou Technology (Hong Kong) Limited[194](index=194&type=chunk) [Share Option Scheme](index=56&type=section&id=Share%20Option%20Scheme) The company's share option scheme was adopted on June 18, 2024, to incentivize eligible participants; as of June 30, 2025, no share options were granted, vested, lapsed, cancelled, or exercised - The share option scheme was adopted on **June 18, 2024**, with a **ten-year validity period**, aiming to incentivize eligible participants[196](index=196&type=chunk)[199](index=199&type=chunk) - Eligible participants include directors, non-executive officers, Group employees, associated entity participants, and service providers[197](index=197&type=chunk)[199](index=199&type=chunk) - As of June 30, 2025, there were **no outstanding share options** or unvested awards, nor were any share options granted, vested, lapsed, cancelled, or exercised[200](index=200&type=chunk)[203](index=203&type=chunk) - As of June 30, 2025, the total number of share options that could be granted under the scheme mandate limit was **9,384,146 shares**[201](index=201&type=chunk)[203](index=203&type=chunk) [Compliance with the Standard of Conduct for Securities Transactions by Directors](index=57&type=section&id=Compliance%20with%20the%20Standard%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a code of conduct for directors' securities transactions no less exacting than required by the GEM Listing Rules, and all directors confirmed compliance during the interim period - The company has adopted a code of conduct for directors' securities transactions no less exacting than required by the **GEM Listing Rules**[202](index=202&type=chunk)[204](index=204&type=chunk) - All directors confirmed compliance with the said code during the interim period[202](index=202&type=chunk)[204](index=204&type=chunk) [Changes in Directors' Information](index=58&type=section&id=Changes%20in%20Directors'%20Information) After the reporting period, several changes occurred in the company's board of directors, including the resignation of an independent non-executive director, appointment of an executive director and chairman, and appointment of a chief executive officer - Mr. Chan Yik Wah resigned as an independent non-executive director on **April 1, 2025**[206](index=206&type=chunk) - Mr. Tsang Chi Wan was appointed as an executive director on **April 14, 2025**, and as Chairman on **June 6, 2025**, with his director's emoluments adjusted from **June 7, 2025**[206](index=206&type=chunk) - Mr. Li Wei was appointed as an independent non-executive director on **April 14, 2025**[206](index=206&type=chunk) - Mr. Zhang Wei and Ms. Zhang Yanwen resigned as executive director and independent non-executive director on **June 6, 2025**[207](index=207&type=chunk) - Ms. Qiu Mengru was appointed as an executive director and Chief Executive Officer on **June 6, 2025**[207](index=207&type=chunk) - Mr. Tang Wai Yau and Mr. Wu Chennan were appointed as independent non-executive directors on **June 6, 2025**[207](index=207&type=chunk) [Interests in Competing Business](index=60&type=section&id=Interests%20in%20Competing%20Business) During the reporting period, no directors, controlling shareholders, or substantial shareholders and their close associates engaged in businesses competing with the Group's operations - During the interim period, no directors, controlling shareholders, or substantial shareholders and their close associates engaged in businesses competing with the Group's operations[208](index=208&type=chunk)[212](index=212&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=60&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the interim period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[209](index=209&type=chunk)[213](index=213&type=chunk) [Corporate Governance Practices](index=60&type=section&id=Corporate%20Governance%20Practices) The company is committed to enhancing corporate governance and complied with all code provisions of Appendix C1 to the GEM Listing Rules on Corporate Governance Code during the interim period - The company has complied with all code provisions of Appendix C1 to the **GEM Listing Rules** on Corporate Governance Code[210](index=210&type=chunk)[214](index=214&type=chunk) [Interim Dividend](index=60&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the first half of 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended **June 30, 2025**[211](index=211&type=chunk)[215](index=215&type=chunk) [Audit Committee](index=61&type=section&id=Audit%20Committee) The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the first half of 2025, deeming them compliant with applicable accounting standards, GEM Listing Rules, and other legal requirements, with adequate disclosure - The Audit Committee has reviewed the interim financial statements and considers them to be in compliance with applicable accounting standards, the **GEM Listing Rules**, and other legal requirements, with adequate disclosure[216](index=216&type=chunk)[219](index=219&type=chunk)

[Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the group's financial performance, showing a net loss and total comprehensive expense for the period | Indicator | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 17,707 | 17,948 | | Cost of sales | (6,279) | (6,233) | | Gross profit | 11,428 | 11,715 | | Other income | 3,976 | 4,573 | | Net other gains and losses | (6,676) | (6,808) | | Selling and distribution expenses | (640) | (1,970) | | Administrative expenses | (17,785) | (12,170) | | Finance costs | (647) | (708) | | Loss before tax | (10,344) | (5,368) | | Loss for the period | (10,344) | (5,368) | | Total comprehensive expense for the period | (29,660) | (7,832) | | Loss for the period attributable to owners of the Company | (11,280) | (5,160) | | Basic and diluted loss per share (RMB cents) | (10.44) | (2.99) | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the group's assets, liabilities, and equity at the end of the reporting period | Indicator | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Non-current assets | 13,393 | 13,316 | | Current assets | 449,960 | 348,279 | | Current liabilities | 460,896 | 328,808 | | Net current (liabilities) / assets | (10,936) | 19,471 | | Total assets less current liabilities | 2,457 | 32,787 | | Non-current liabilities | 1,747 | 2,417 | | Net assets | 710 | 30,370 | | Total equity | 710 | 30,370 | [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details the changes in the group's equity attributable to owners over the reporting period | Indicator | June 30, 2025 (thousand RMB) | January 1, 2024 (thousand RMB) | | :--- | :--- | :--- | | Total equity at beginning of period | 30,370 | 34,392 | | Total comprehensive (expense) / income for the period | (29,660) | (7,832) | | Total equity at end of period | 710 | 26,560 | [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities | Indicator | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Net cash from operating activities | 50,700 | 5,914 | | Net cash from investing activities | 10,565 | 1,026 | | Net cash (used in) / from financing activities | (15,591) | 643 | | Net increase in cash and cash equivalents | 45,674 | 7,583 | | Cash and cash equivalents at beginning of period | 23,195 | 16,805 | | Effect of exchange rate changes, net | (19,315) | (2,464) | | Cash and cash equivalents at end of period | 49,554 | 21,924 | [Notes to the Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated interim financial statements [1. Company Information](index=11&type=section&id=1.%20Company%20Information) The company is a public limited company incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange - The company is incorporated in the Cayman Islands, with shares listed on the Hong Kong Stock Exchange[23](index=23&type=chunk) - The Group's principal activities include investment holding, outdoor and digital advertising services, and prepaid card business[24](index=24&type=chunk) [2. Basis of Preparation and Accounting Policies](index=11&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The financial statements are prepared under IFRS and GEM Listing Rules, using historical cost basis and presented in RMB - The financial statements are prepared in accordance with International Financial Reporting Standards and the GEM Listing Rules[25](index=25&type=chunk) - They are prepared on a historical cost basis and presented in RMB[25](index=25&type=chunk) - Accounting policies are consistent with the audited consolidated financial statements for the year ended December 31, 2024[25](index=25&type=chunk) [Going Concern Basis](index=11&type=section&id=Going%20Concern%20Basis) Despite current liabilities exceeding current assets, the directors deem the group a going concern due to sufficient working capital - As of June 30, 2025, current liabilities exceeded current assets by **RMB 10.9 million**[26](index=26&type=chunk) - Restricted cash and cash equivalents amounted to **RMB 399.8 million** as of June 30, 2025[26](index=26&type=chunk) - On July 14, 2025, a successful placement of 21,600,000 shares generated net proceeds of **HKD 14.8 million**[26](index=26&type=chunk) - The directors consider the Group to have sufficient working capital, making the preparation of financial statements on a going concern basis appropriate[26](index=26&type=chunk) [3. Application of New and Revised International Financial Reporting Standards](index=12&type=section&id=3.%20Application%20of%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) The group adopted new IFRS effective January 1, 2025, with no significant impact on financial results or position - New and revised International Financial Reporting Standards effective on or after January 1, 2025, have been adopted during this period[29](index=29&type=chunk) - The application of new standards has not resulted in significant changes to accounting policies or reported amounts[29](index=29&type=chunk) - Directors anticipate no significant impact from the future application of new standards[29](index=29&type=chunk) [4. Revenue and Segment Information](index=12&type=section&id=4.%20Revenue%20and%20Segment%20Information) Revenue primarily derives from prepaid card business, with outdoor and digital advertising and film investment generating no revenue | Revenue Source | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Outdoor and digital advertising revenue | – | 101 | | Film and entertainment investment revenue | – | – | | Prepaid card revenue | 17,707 | 17,847 | | Total | 17,707 | 17,948 | | Operating Segment | H1 2025 Segment Profit (thousand RMB) | H1 2024 Segment (Loss) / Profit (thousand RMB) | | :--- | :--- | :--- | | Outdoor and digital advertising | – | (157) | | Film and entertainment investment | – | – | | Prepaid card | 3,241 | 6,787 | [5. Net Other Gains and Losses](index=14&type=section&id=5.%20Net%20Other%20Gains%20and%20Losses) Net other gains and losses resulted in a loss of RMB 6,676 thousand, mainly from financial asset disposals and fair value changes | Item | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Fair value changes of financial assets at fair value through profit or loss | (2,107) | (6,808) | | Loss on disposal of financial assets | (5,757) | – | | Others | 1,188 | – | | Total | (6,676) | (6,808) | [6. Finance Costs](index=15&type=section&id=6.%20Finance%20Costs) Total finance costs were RMB 647 thousand, primarily comprising interest expenses on corporate bonds and lease liabilities | Item | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Interest expense on lease liabilities | 183 | 42 | | Interest expense on corporate bonds | 457 | 666 | | Interest expense on other borrowings | 7 | – | | Total | 647 | 708 | [7. Taxation](index=15&type=section&id=7.%20Taxation) No Hong Kong profits tax provision was made due to no taxable profits, while Chinese subsidiaries face a 25% corporate income tax rate - No Hong Kong profits tax provision was made as the Group had no assessable profits in Hong Kong[36](index=36&type=chunk) - Hong Kong profits tax operates under a two-tiered system: **8.25%** for the first **HKD 2 million** of assessable profits and **16.5%** for profits exceeding this amount[36](index=36&type=chunk) - The corporate income tax rate for Chinese subsidiaries is **25%**[36](index=36&type=chunk) [8. Loss for the Period](index=15&type=section&id=8.%20Loss%20for%20the%20Period) The loss for the period is stated after deducting items such as depreciation, right-of-use asset depreciation, and increased employee benefits | Item | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Depreciation | 827 | 342 | | Depreciation of right-of-use assets | 545 | 346 | | Total employee benefits expense | 7,372 | 6,594 | [9. Dividends](index=16&type=section&id=9.%20Dividends) The Board of Directors does not recommend the payment of any dividend for the six months ended June 30, 2025 - The directors do not recommend the payment of any dividend for the six months ended June 30, 2025[39](index=39&type=chunk) [10. Loss Per Share](index=16&type=section&id=10.%20Loss%20Per%20Share) Basic and diluted loss per share for the six months ended June 30, 2025, was RMB 10.44 cents, an increase from the prior period | Indicator | H1 2025 | | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share (thousand RMB) | (11,280) | | Weighted average number of ordinary shares for calculating basic and diluted loss per share (thousand shares) | 108,000 | | Basic and diluted loss per share (RMB cents) | (10.44) | | Indicator | H1 2024 | | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share (thousand RMB) | (5,160) | | Weighted average number of ordinary shares for calculating basic and diluted loss per share (thousand shares) | 172,800 | | Basic and diluted loss per share (RMB cents) | (2.99) | [11. Trade Receivables](index=17&type=section&id=11.%20Trade%20Receivables) Net trade receivables increased to RMB 12,774 thousand as of June 30, 2025, with most balances due within 90 days | Indicator | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade receivables | 95,223 | 91,571 | | Less: Provision for expected credit losses | (82,449) | (79,780) | | Net | 12,774 | 11,791 | | Ageing | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Within 90 days | 9,155 | 7,592 | | After 1 year | 3,619 | 4,199 | | Total | 12,774 | 11,791 | - The Group generally grants credit periods ranging from **30 to 365 days** to its customers and maintains strict monitoring[41](index=41&type=chunk) [12. Trade Payables / Other Payables and Accruals](index=18&type=section&id=12.%20Trade%20Payables%20%2F%20Other%20Payables%20and%20Accruals) Trade payables increased to RMB 42,460 thousand, and other payables significantly rose to RMB 413,710 thousand, mainly due to prepaid card holder funds | Trade Payables Ageing | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Within 90 days | 41,524 | 17,632 | | 91 to 180 days | – | 66 | | After 181 days | 936 | 3,137 | | Total | 42,460 | 20,835 | | Other Payables and Accruals | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Other payables | 403,877 | 269,089 | | Accrued salaries and staff benefits | 251 | 89 | | Other accruals | 9,582 | 17,046 | | Other tax payables | – | 1,738 | | Total | 413,710 | 287,962 | - Approximately **RMB 318,456 thousand** of other payables primarily represents restricted cash held on behalf of prepaid card holders in regulated activities[43](index=43&type=chunk) [13. Share Capital](index=19&type=section&id=13.%20Share%20Capital) Issued and fully paid share capital as of June 30, 2025, was 108,000,000 shares, valued at RMB 1,115 thousand, increasing due to a rights issue | Share Capital Movement | Number of Shares | Share Capital (thousand RMB) | | :--- | :--- | :--- | | At January 1, 2024 | 172,800,000 | 1,115 | | Share consolidation | (129,600,000) | – | | At December 31, 2024 and January 1, 2025 | 43,200,000 | 1,115 | | Rights issue | 64,800,000 | – | | At June 30, 2025 | 108,000,000 | 1,115 | [14. Related Party Transactions](index=19&type=section&id=14.%20Related%20Party%20Transactions) Key management personnel compensation increased for the six months ended June 30, 2025 | Item | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Short-term employee benefits | 853 | 596 | | Post-employment benefits | 10 | 16 | | Total | 863 | 612 | [Management Discussion and Analysis and Other Information](index=20&type=section&id=Management%20Discussion%20and%20Analysis%20and%20Other%20Information) This section provides an overview of the group's operational and financial performance, liquidity, and future outlook [Business and Financial Review](index=20&type=section&id=Business%20and%20Financial%20Review) Total revenue slightly decreased by 1.3% to RMB 17,707 thousand, primarily from prepaid card business, with total comprehensive expense significantly increasing - Total revenue was approximately **RMB 17,707 thousand**, a decrease of approximately **1.3%** compared to the same period last year[47](index=47&type=chunk) - Revenue during this period primarily originated from the prepaid card business, with no revenue generated from outdoor and digital advertising or film and entertainment investment businesses[47](index=47&type=chunk) - Total gross profit was approximately **RMB 11,428 thousand**, a decrease of approximately **2.4%** from the prior period, with a gross profit margin of **64.5%** (H1 2024: 65.3%)[47](index=47&type=chunk) - Total comprehensive expense attributable to owners of the Company was approximately **RMB 30,596 thousand**, an increase of approximately **RMB 22,972 thousand** from the prior period, mainly due to exchange differences from converting overseas operations[47](index=47&type=chunk) [Outdoor and Digital Advertising](index=20&type=section&id=Outdoor%20and%20Digital%20Advertising) No revenue was generated from outdoor and digital advertising due to intense industry competition and reduced client numbers - No revenue was generated from outdoor and digital advertising for the six months ended June 30, 2025[49](index=49&type=chunk) - The decrease in revenue was primarily due to intense industry competition, leading to a reduction in the number of clients[49](index=49&type=chunk) [Film and Entertainment Investment](index=20&type=section&id=Film%20and%20Entertainment%20Investment) No revenue was generated from film and entertainment investment due to production disruptions, delayed releases, and tightened regulations - No revenue was generated from the film and entertainment business for the six months ended June 30, 2025[50](index=50&type=chunk) - The decline in business was mainly attributed to disruptions in film/TV series production schedules, delayed releases, tightened tax measures in China, and increased government censorship and regulation[50](index=50&type=chunk) - The Group has suspended further investment in this business segment[50](index=50&type=chunk) [Prepaid Card Business](index=21&type=section&id=Prepaid%20Card%20Business) Prepaid card business revenue slightly decreased by 0.8% to RMB 17,707 thousand, remaining the group's primary income source - Revenue from the prepaid card business decreased by approximately **0.8%** to approximately **RMB 17,707 thousand** for the six months ended June 30, 2025, from approximately RMB 17,847 thousand in the prior period[52](index=52&type=chunk) - The Group obtained a Stored Value Facilities (SVF) license in November 2016[52](index=52&type=chunk) [Cost of Sales](index=21&type=section&id=Cost%20of%20Sales) Cost of sales slightly increased by 0.7% to RMB 6,279 thousand, primarily due to prepaid card transaction processing costs - Cost of sales slightly increased by approximately **0.7%** to approximately **RMB 6,279 thousand** for the six months ended June 30, 2025, from approximately RMB 6,233 thousand in the prior period[53](index=53&type=chunk) - Cost of sales primarily includes production costs for film and entertainment projects, advertising media agency fees, prepaid card transaction processing costs, and direct labor costs[53](index=53&type=chunk) [Other Income](index=21&type=section&id=Other%20Income) Other income decreased by 13.1% to RMB 3,976 thousand, mainly attributable to lower bank deposit interest rates - Other income decreased by approximately **13.1%** to approximately **RMB 3,976 thousand** for the six months ended June 30, 2025, from approximately RMB 4,573 thousand in the prior period[54](index=54&type=chunk) - The decrease in other income was mainly due to lower bank deposit interest rates during the period ended June 30, 2025[54](index=54&type=chunk) [Net Other Gains and Losses (MD&A)](index=21&type=section&id=Net%20Other%20Gains%20and%20Losses%20(MD%26A)) Net other gains and losses decreased by 1.9% to a loss of RMB 6,676 thousand, primarily from financial asset disposals and fair value losses - Net other gains and losses decreased by approximately **1.9%** to a net loss of approximately **RMB 6,676 thousand** for the six months ended June 30, 2025, from a net loss of approximately RMB 6,808 thousand in the prior period[55](index=55&type=chunk) - Net other gains and losses primarily include losses on disposal of financial assets and fair value losses from financial assets at fair value through profit or loss recognized for the six months ended June 30, 2025[55](index=55&type=chunk) [Selling and Distribution Expenses](index=21&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses significantly decreased by 67.5% to RMB 640 thousand, mainly due to reduced advertising and marketing costs - Selling and distribution expenses decreased by approximately **67.5%** to approximately **RMB 640 thousand** for the six months ended June 30, 2025, from approximately RMB 1,970 thousand in the prior period[56](index=56&type=chunk) - The decrease was mainly due to lower advertising and marketing expenses incurred for the six months ended June 30, 2025[56](index=56&type=chunk) [Administrative Expenses](index=21&type=section&id=Administrative%20Expenses) Administrative expenses increased by RMB 5,615 thousand, primarily due to the expanded scale of prepaid card operations and increased headcount - Administrative expenses increased by approximately **RMB 5,615 thousand** for the six months ended June 30, 2025[57](index=57&type=chunk) - The increase was mainly due to the expanded scale of prepaid card business operations, particularly the increase in staff headcount for the six months ended June 30, 2025[57](index=57&type=chunk) [Liquidity and Financial Resources](index=21&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the group's cash and cash equivalents were RMB 49,554 thousand, with a current ratio of 0.98 and a debt-to-asset ratio of 0.96 - As of June 30, 2025, the Group's cash and cash equivalents were approximately **RMB 49,554 thousand**[58](index=58&type=chunk) - As of June 30, 2025, the Group's current ratio was approximately **0.98** (December 31, 2024: 1.06)[58](index=58&type=chunk) - As of June 30, 2025, the Group's debt-to-asset ratio was approximately **0.96** (December 31, 2024: 0.34)[58](index=58&type=chunk) - As of June 30, 2025, the Group had repaid its outstanding bonds[58](index=58&type=chunk) [Pledge of Assets](index=22&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the group had no assets pledged to secure any loans granted to it - As of June 30, 2025, the Group had no assets pledged to secure any loans granted to it[60](index=60&type=chunk) [Restricted Cash](index=22&type=section&id=Restricted%20Cash) Restricted cash increased by 21.6% to RMB 350,280 thousand, primarily due to increased prepaid card sales and top-ups - As of June 30, 2025, the Group's restricted cash from prepaid card sales and top-ups was approximately **RMB 350,280 thousand** (December 31, 2024: RMB 288,078 thousand)[61](index=61&type=chunk) - Restricted cash increased by approximately **21.6%** compared to the prior period, mainly due to an increase in the value of prepaid cards sold[61](index=61&type=chunk) [Contingent Liabilities](index=22&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[62](index=62&type=chunk) [Capital Commitments](index=22&type=section&id=Capital%20Commitments) As of June 30, 2025, the group had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments[63](index=63&type=chunk) [Foreign Exchange Risk](index=22&type=section&id=Foreign%20Exchange%20Risk) Operating primarily in China and Hong Kong, the group's transactions are settled in RMB and HKD, with no significant foreign exchange risk - The Group primarily operates in China and Hong Kong, with most transactions settled in RMB and HKD[64](index=64&type=chunk) - The directors believe the Group's foreign exchange risk is not significant[64](index=64&type=chunk) - The Group did not engage in any hedging activities for foreign exchange risk for the six months ended June 30, 2025[64](index=64&type=chunk) [Human Resources](index=22&type=section&id=Human%20Resources) The group employed 30 staff as of June 30, 2025, with total staff costs increasing during the period - As of June 30, 2025, the Group employed a total of **30 staff** in China and Hong Kong (June 30, 2024: 34 staff)[65](index=65&type=chunk) - Total staff costs (including directors' emoluments) for the six months ended June 30, 2025, were approximately **RMB 7,372 thousand** (six months ended June 30, 2024: RMB 6,594 thousand)[65](index=65&type=chunk) [Outlook](index=22&type=section&id=Outlook) The group plans to expand its payment and prepaid card businesses, seek other financial licenses, and explore cryptocurrency opportunities - The Group will continue to actively expand its payment license and prepaid card business, while also striving to obtain other financial business licenses[66](index=66&type=chunk) - The implementation of Hong Kong's stablecoin regulations (effective August 1, 2025) is considered a strategic opportunity to enter the cryptocurrency sector[66](index=66&type=chunk) - In the coming year, the Group will strengthen cost control and implement appropriate measures to drive business development[66](index=66&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards and complied with the GEM Listing Rules during the period - The Company is committed to maintaining a high level of corporate governance to serve the interests of its shareholders[67](index=67&type=chunk) - To the best of the Board's knowledge, the Company has complied with the Corporate Governance Code for the six months ended June 30, 2025[67](index=67&type=chunk) [Dividends (MD&A)](index=23&type=section&id=Dividends%20(MD%26A)) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025[68](index=68&type=chunk) [Directors' Interests in Competing Business](index=23&type=section&id=Directors'%20Interests%20in%20Competing%20Business) No directors, controlling shareholders, or their associates held interests in businesses competing with the group during the period - For the six months ended June 30, 2025, none of the directors, controlling shareholders of the Company, or their respective associates had any interests in businesses that compete or are likely to compete with the Group's business[69](index=69&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2025 - 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[70](index=70&type=chunk) [Material Investments, Material Acquisitions or Disposals and Future Plans for Material Investments or Capital Assets](index=23&type=section&id=Material%20Investments%2C%20Material%20Acquisitions%20or%20Disposals%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The group had no material investments, acquisitions, or disposals, nor specific future plans for material investments or capital assets - For the six months ended June 30, 2025, the Group had no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures[71](index=71&type=chunk) - As of June 30, 2025, the Group had no specific future plans for material investments or capital assets[71](index=71&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations](index=23&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) As of June 30, 2025, Executive Director Mr. Ruan Deqing held a 3.33% long position in the company's shares through a controlled corporation | Director's Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Ruan Deqing | Interest in controlled corporation | 3,600,125 | 3.33 | - Mr. Ruan Deqing holds shares through Power Elite Limited, which is **48.73%** owned by Harmony Elite Limited, with all issued share capital of Harmony Elite Limited owned by Mr. Ruan Deqing[72](index=72&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=24&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, several key individuals and entities each held a 3.33% long position in the company's shares | Shareholder Name / Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Lam Pun Tung | Interest in controlled corporation | 3,600,125 | 3.33 | | Power Elite | Beneficial owner | 3,600,125 | 3.33 | | Bright Capital | Interest in controlled corporation | 3,600,125 | 3.33 | | Ms. Poon Hiu Ying | Spouse's interest | 3,600,125 | 3.33 | | Harmony Elite | Interest in controlled corporation | 3,600,125 | 3.33 | | Ms. Liu Si Bin | Spouse's interest | 3,600,125 | 3.33 | - Mr. Lam Pun Tung, Mr. Ruan Deqing, Bright Capital, and Harmony Elite are deemed to have an interest in all shares held by Power Elite[80](index=80&type=chunk) - Ms. Poon Hiu Ying, spouse of Mr. Lam Pun Tung, and Ms. Liu Si Bin, spouse of Mr. Ruan Deqing, are both deemed to have an interest in the relevant shares[80](index=80&type=chunk) [Standard of Conduct Regarding Securities Transactions by Directors](index=25&type=section&id=Standard%20of%20Conduct%20Regarding%20Securities%20Transactions%20by%20Directors) The company adopted a code of conduct for directors' securities transactions, which all directors confirmed compliance with during the period - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the required standard set out in Rules 5.48 to 5.67 of the GEM Listing Rules[77](index=77&type=chunk) - Following specific inquiries with all directors, all directors confirmed their compliance with the code of conduct and the required standard for directors' securities transactions for the six months ended June 30, 2025[77](index=77&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) On July 14, 2025, the group completed a placement of 21,600,000 ordinary shares, raising approximately HKD 14.8 million net proceeds - On July 14, 2025, the Group completed the placement of a total of **21,600,000** ordinary shares of **USD 0.004** each at a price of **HKD 0.70** per ordinary share to no less than six placees through a placing agent[78](index=78&type=chunk) - The net proceeds from the placing of shares amounted to approximately **HKD 14.8 million**[78](index=78&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on June 30, 2021, to incentivize participants, with no options granted or exercised this period - The Company adopted a share option scheme pursuant to an ordinary resolution passed by shareholders at the annual general meeting held on June 30, 2021[82](index=82&type=chunk) - Participants in the share option scheme include employees (including directors) of the Group, suppliers of goods or services, customers, substantial shareholders, consultants or advisors, and joint venture partners[82](index=82&type=chunk) - The share option scheme has a general scheme limit (10% of issued shares) and an individual limit (1% of issued share capital in any twelve-month period)[83](index=83&type=chunk)[84](index=84&type=chunk) - The exercise price of the shares will be determined by the directors, but shall not be less than the highest of (i) the closing price of the shares as stated in the daily quotation sheet of the Stock Exchange on the date of the offer of the share option; (ii) the average closing price of the shares as stated in the daily quotation sheet of the Stock Exchange for the five business days immediately preceding the date of the offer of the share option; and (iii) the nominal value of a share[85](index=85&type=chunk) - For the period ended June 30, 2025, no share options were carried forward, granted, or exercised under the Company's share option scheme, and there were no outstanding share options[86](index=86&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee, established on December 17, 2010, reviewed the interim results and confirmed compliance with accounting standards - The Company established an Audit Committee on December 17, 2010, with written terms of reference in compliance with the GEM Listing Rules and the Corporate Governance Code[87](index=87&type=chunk) - As of June 30, 2025, the Audit Committee comprised three members: Ms. Cheng Suet Lai (Chairperson), Mr. Chan Wing Wah, and Ms. Wipada Kunna, all of whom are independent non-executive directors[87](index=87&type=chunk) - The Audit Committee has reviewed the unaudited consolidated results and report of the Group for the six months ended June 30, 2025, and is of the opinion that they were prepared in accordance with applicable accounting standards and the GEM Listing Rules, with adequate disclosures made[89](index=89&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company reported significant growth in revenue, net income, gross profit, and operating profit for the six months ended June 30, 2025 Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 938,111 | 638,287 | 47.0% | | Net Revenue (1) | 253,903 | 166,536 | 52.5% | | Gross Profit | 201,125 | 131,201 | 53.3% | | Operating Profit | 46,916 | 13,243 | 254.3% | | Profit for the Period | 32,284 | 7,337 | 340.0% | | Adjusted EBITDA (2) | 88,681 | 62,881 | 41.0% | - Net revenue is defined as adjusted revenue after deducting costs allocated to traffic publishers, not measured under IFRS standards[3](index=3&type=chunk) - Adjusted EBITDA is defined as profit before interest, tax, depreciation, and amortization for the period, adjusted for share-based compensation, one-off loss from discontinuing certain non-programmatic businesses, arbitration-related fees for Heat Cloud Data, foreign exchange loss/(gain), and fair value gain/(loss) on financial assets measured at fair value through profit or loss[3](index=3&type=chunk) [Business Review](index=2&type=section&id=Business%20Review) This section provides an overview of the company's business, industry trends, strategic layout, development history, and key business segments [Company Profile](index=2&type=section&id=I.%20Company%20Profile) Mobvista is a technology company dedicated to providing Ad-tech and Mar-tech services for the global mobile internet ecosystem, aiming to significantly enhance advertising ROI and help mobile applications overcome growth plateaus through a comprehensive suite of tools - The company offers Ad-tech and Mar-tech services, including user acquisition, monetization, analytics, creative automation, and smart media buying, aiming to enhance ROI and help apps overcome growth plateaus[5](index=5&type=chunk) [Industry Overview](index=2&type=section&id=II.%20Industry%20Overview) In H1 2025, global economic growth slowed, but the advertising industry remained resilient, with AI applications driving deep integration of AI into ad and mar-tech, while privacy and antitrust regulations fostered a more open and transparent ecosystem, favoring hybrid monetization and ROI-controlled bidding in the booming mobile app market [Global Advertising Market Steady Growth, Stricter Privacy and Antitrust Regulations](index=2&type=section&id=2.1.%20Global%20Advertising%20Market%20Steady%20Growth%2C%20Stricter%20Privacy%20and%20Antitrust%20Regulations) In H1 2025, global economic growth slowed, but the advertising industry remained resilient; 2024 saw significant digital ad spend growth with programmatic ads exceeding 80%, while stricter privacy and antitrust regulations are driving a more open and transparent ad ecosystem, creating opportunities for ad-tech companies - In H1 2025, global economic growth slowed, but the advertising industry maintained growth, with the explosion of AI applications driving deep integration of AI into the sector[6](index=6&type=chunk) - Global digital advertising expenditure grew significantly in 2024, with programmatic advertising accounting for over **80%**, and stricter privacy regulations and antitrust measures are driving the industry towards a more open and transparent evolution, creating opportunities for technology companies[7](index=7&type=chunk)[8](index=8&type=chunk) [Mobile App Market Thrives, Open Web Key for Traffic Growth](index=3&type=section&id=2.2.%20Mobile%20App%20Market%20Thrives%2C%20Open%20Web%20Key%20for%20Traffic%20Growth) According to Sensor Tower, global app user time increased by 5.8% YoY in 2024, with double-digit growth in in-app purchase revenue, indicating significant mobile app market potential; advertisers are shifting from download volume to LTV-focused user acquisition, making the open web a crucial channel for acquiring high-LTV users due to its diverse traffic pools, user groups, creative options, and efficient delivery capabilities - The mobile app market is booming, with user engagement and in-app purchase revenue experiencing **double-digit growth**, leading advertisers to shift their user acquisition strategies towards **LTV**[9](index=9&type=chunk) - The open web, with its diverse traffic pools, varied user groups, rich ad creatives, and efficient delivery capabilities, has become an indispensable key battleground for advertisers and developers to achieve user acquisition and revenue growth[10](index=10&type=chunk) [Hybrid Monetization Mainstream, ROI-Controlled Bidding Favored by Advertisers](index=4&type=section&id=2.3.%20Hybrid%20Monetization%20Mainstream%2C%20ROI-Controlled%20Bidding%20Favored%20by%20Advertisers) Mobile app developers are widely adopting hybrid monetization strategies, combining ads, subscriptions, and in-app purchases to diversify revenue and enhance user experience; ROI-controlled bidding methods are favored by advertisers for their precise measurement of return on investment, with Mintegral actively developing smart bidding systems like Target ROAS and Target CPE since 2023 to meet diverse business objectives - Hybrid monetization strategies are becoming mainstream, with ROI-controlled bidding methods favored by advertisers, and Mintegral has launched Target ROAS and Target CPE smart bidding features to meet diverse business objectives[11](index=11&type=chunk)[12](index=12&type=chunk) [Ad-tech Industry Value Chain Structure and Company Strategic Layout](index=4&type=section&id=III.%20Ad-tech%20Industry%20Value%20Chain%20Structure%20and%20Company%20Strategic%20Layout) The ad-tech industry is segmented into programmatic and non-programmatic advertising, with the company's Mintegral platform, a leading programmatic ad exchange, being its primary revenue and profit driver, covering DSP, ADX, and SSP, and leveraging GameAnalytics and Heat Cloud Data for data asset accumulation and algorithm optimization [Programmatic Advertising Platform Value Chain Structure](index=5&type=section&id=3.1.%20Programmatic%20Advertising%20Platform%20Value%20Chain%20Structure) The programmatic advertising value chain includes upstream advertisers/agencies, midstream technology service providers (DSP, ADX, SSP, data management, monitoring, analytics, attribution tools), and downstream media publishers, with various marketing tech providers strategically focusing on one or more segments - The programmatic advertising industry chain includes upstream advertisers, midstream technology service providers (DSP, ADX, SSP, etc.), and downstream media publishers, with each service provider strategically deploying in different segments[14](index=14&type=chunk) [The Company's Programmatic Advertising Platform](index=5&type=section&id=3.2.%20The%20Company's%20Programmatic%20Advertising%20Platform) As a leading third-party ad-tech platform, the company's core Mintegral platform fully covers DSP, ADX, and SSP, directly connecting advertisers and traffic publishers to form a data closed-loop, enhancing algorithm capabilities and client retention, while also leveraging GameAnalytics and Heat Cloud Data for user behavior statistics, analysis, attribution, and monitoring to optimize algorithms - The Mintegral platform fully covers DSP, ADX, and SSP, directly reaching advertisers and traffic publishers to form a data closed-loop, enhancing algorithm capabilities and client retention rates[15](index=15&type=chunk) - The company provides user behavior statistics, analysis, attribution, and monitoring services through GameAnalytics and Heat Cloud Data, accumulating data assets to optimize and iterate algorithms[15](index=15&type=chunk) [Company Development History](index=6&type=section&id=IV.%20Company%20Development%20History) Mobvista's development spans three phases: initially focusing on ad network services for Chinese apps expanding overseas, then fully advancing the AI-driven programmatic ad exchange Mintegral for global traffic and client coverage, and finally building an 'Ad-tech+Mar-tech' SaaS tool matrix with products like GameAnalytics and Heat Cloud Data for high-quality growth [Phase One: Ad Network Platform — Focused on Serving Chinese Mobile Apps Going Global](index=7&type=section&id=4.1.%20Phase%20One%3A%20Ad%20Network%20Platform%20%E2%80%94%20Focused%20on%20Serving%20Chinese%20Mobile%20Apps%20Going%20Global) Established in 2013, the company built China's first overseas marketing alliance, engaging in non-programmatic advertising with a performance-oriented approach, covering domestic and international channels to help Chinese apps expand globally and quickly enter European and American markets, marking its first growth phase - Established in 2013, the company built China's first overseas marketing alliance, engaging in non-programmatic advertising with a performance-oriented approach, serving Chinese apps expanding globally, and rapidly entering European and American markets[20](index=20&type=chunk) [Phase Two: Programmatic Ad Exchange Platform — "Global Strategy" to Expand into Overseas Local Markets](index=8&type=section&id=4.2.%20Phase%20Two%3A%20Programmatic%20Ad%20Exchange%20Platform%20%E2%80%94%20%E2%80%9CGlobal%20Strategy%E2%80%9D%20to%20Expand%20into%20Overseas%20Local%20Markets) Starting in 2015, the company incubated Mintegral, an AI-driven programmatic interactive advertising platform, to connect global users in an automated and scalable manner, helping Chinese clients enter overseas markets and overseas clients expand into China, achieving global traffic and client coverage, with Mintegral significantly improving delivery efficiency through programmatic models, assisting over 10,000 global advertisers and 100,000 leading apps in acquiring high-quality users - Since 2015, the company has incubated the AI-driven Mintegral platform, connecting global users in an automated and scalable manner to achieve global traffic and client coverage, becoming the primary vehicle for the company's second development phase[21](index=21&type=chunk) - The Mintegral platform, through its programmatic delivery model, achieves "fully automated" ad creation, delivery, and attribution, significantly improving delivery efficiency and assisting over **10,000** global advertisers and over **100,000** apps in acquiring high-quality users[22](index=22&type=chunk) [Phase Three: SaaS Tool Matrix — Achieving "Ad-tech+Mar-tech" Business Growth](index=9&type=section&id=4.3.%20Phase%20Three%3A%20SaaS%20Tool%20Matrix%20%E2%80%94%20Achieving%20%E2%80%9CAd-tech%2BMar-tech%E2%80%9D%20Business%20Growth) In 2019, the company launched its 'SaaS Tool Matrix' strategy, integrating Ad-tech and Mar-tech capabilities to cover core developer scenarios from analytics, user growth, monetization, operational efficiency, to cloud cost optimization; through strategic acquisitions like GameAnalytics, launching Heat Cloud Data, and developing tools like XMP and Playturbo, the company aims to help enterprise clients leverage data, optimize marketing solutions, and achieve high-quality growth - Since 2019, the company has built a 'SaaS Tool Matrix' strategy, integrating Ad-tech and Mar-tech capabilities to cover core scenarios across the developer lifecycle, achieving high-quality growth[23](index=23&type=chunk) - Strategic acquisition of GameAnalytics enhanced game data insights, Heat Cloud Data provides user acquisition attribution and marketing data analytics, XMP improves cross-channel delivery efficiency, and Playturbo enables automated creative production[24](index=24&type=chunk) [Key Business Segments](index=10&type=section&id=V.%20Key%20Business%20Segments) Mobvista's revenue primarily stems from its Ad-tech segment, centered around Mintegral, contributing over **90%** of net revenue, while the Mar-tech segment is still in early product development, with Ad-tech encompassing programmatic (Mintegral) and non-programmatic advertising, and Mar-tech including GameAnalytics and Heat Cloud Data - The company's revenue primarily comes from the Ad-tech segment (centered on Mintegral), contributing over **90%** of net revenue; the Mar-tech segment is still in the early stages of product development[25](index=25&type=chunk) [Ad-tech Segment: Programmatic Advertising Platform Mintegral](index=10&type=section&id=5.1.%20Ad-tech%20Segment%3A%20Programmatic%20Advertising%20Platform%20Mintegral) Mintegral is a leading global programmatic advertising technology platform, offering one-stop programmatic ad delivery and monetization services by connecting a vast pool of long-tail app traffic; its business model is performance-based, with gross profit influenced by server costs and platform algorithm efficiency, serving clients and traffic globally, primarily in the gaming vertical with active expansion into non-gaming categories, leveraging SDK integration, algorithm iteration, and high-ROI delivery to form a flywheel effect and strengthen its competitive advantage, demonstrating economies of scale and operating leverage with continuous revenue growth and improved gross margins - Mintegral is a leading global programmatic advertising technology platform, providing one-stop programmatic ad delivery and traffic monetization services, primarily generating revenue through performance-based advertising fees[26](index=26&type=chunk)[27](index=27&type=chunk) - Mintegral's gross profit primarily depends on server costs and platform algorithm-related resource costs, with gross margin expected to increase as scale expands and algorithm efficiency improves[28](index=28&type=chunk) - Mintegral's clients are spread across approximately **130** countries and regions globally, primarily in the gaming vertical (**73.8%**), with active expansion into non-gaming verticals (**26.2%**)[29](index=29&type=chunk) - Mintegral's traffic reaches over **250** countries and regions worldwide, with over **99%** from overseas, primarily gaming vertical traffic, while also possessing mobile traffic in verticals such as tools, social, content, and lifestyle services[30](index=30&type=chunk) - Mintegral accumulated clients through initial non-programmatic advertising business, attracted traffic with developer incentive programs, and entered the European and American gaming ecosystem through the acquisition of GameAnalytics, forming a scaled traffic ecosystem and data closed-loop[33](index=33&type=chunk) - Mintegral forms a positive flywheel effect through SDK integration, algorithm iteration, and high-ROI delivery, continuously strengthening its competitive advantage, and possesses a top-tier R&D team, with its technological capabilities continuously improving[33](index=33&type=chunk)[39](index=39&type=chunk) - The Mintegral platform demonstrates economies of scale and operating leverage, with sustainable revenue growth, improved gross margins, and continuously optimized sales, general & administrative, and R&D expense ratios[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [Ad-tech Segment: Non-Programmatic Advertising Platform](index=16&type=section&id=5.2.%20Ad-tech%20Segment%3A%20Non-Programmatic%20Advertising%20Platform) The non-programmatic advertising business is performance-oriented, covering global long-tail media through an ad network alliance to provide advertisers with rapid, scaled user acquisition, earning traffic arbitrage; this business, the company's origin, maintains a leading industry position, serves as a stable profit source for the group, and strongly synergizes with Mintegral - The non-programmatic advertising business is performance-oriented, covering global long-tail media through an ad network alliance to provide user acquisition services for advertisers, serving as a stable profit source for Mobvista[47](index=47&type=chunk) - This business synergizes with Mintegral, offering clients both programmatic and non-programmatic traffic delivery methods[47](index=47&type=chunk) [Mar-tech Segment: GameAnalytics](index=16&type=section&id=5.3.%20Mar-tech%20Segment%3A%20GameAnalytics) GameAnalytics, a SaaS-based in-app data analytics tool under Mobvista, is one of the world's largest data analytics platforms for mobile, Roblox, PC, and VR games, providing deep insights, LiveOps tools, data management, and app market intelligence to game studios and publishers; it charges monthly subscription fees and additional fees based on Monthly Active Users (MAU), strategically consolidating the group's core competitiveness in game advertising - GameAnalytics is one of the world's largest SaaS-based mobile game data analytics platforms, providing deep insights, LiveOps tools, data management, and app market intelligence[48](index=48&type=chunk) - GA charges monthly subscription fees and additional fees based on **MAU**, which is strategically significant for consolidating the group's core competitiveness in game advertising, reaching potential clients, and securing high-quality advertising resources[49](index=49&type=chunk)[53](index=53&type=chunk) [Mar-tech Segment: Heat Cloud Data](index=18&type=section&id=5.4.%20Mar-tech%20Segment%3A%20Heat%20Cloud%20Data) Heat Cloud Data, a comprehensive product and service upgrade based on Heat Cloud Data, is a third-party platform focused on mobile ad delivery performance monitoring and data analysis, offering SaaS tools for data collection, mining, delivery data analysis, user data management, intelligent creative analysis, and cloud computing resource optimization; its main products are SaaS tools, with pricing primarily based on usage and subscription models - Heat Cloud Data is a third-party platform focused on mobile ad delivery performance monitoring and data analysis, providing SaaS tools for data collection, mining, analysis, management, and optimization[54](index=54&type=chunk) - Heat Cloud Data's main products are SaaS tools, with pricing models including usage-based fees and subscriptions[54](index=54&type=chunk) [Business Review and Outlook](index=19&type=section&id=5.5.%20Business%20Review%20and%20Outlook) Since 2025, the group's fundamentals have continuously improved, with significant development in AI and machine learning-driven smart bidding systems; Mintegral launched Target ROAS, Hybrid ROAS, IAP ROAS, and Target CPE, upgrading user acquisition from shallow installation bidding to ROI-based smart bidding, with smart bidding products contributing over **80%** of Mintegral's total transaction volume, driving revenue and profit growth, while ad-tech revenue and net revenue saw significant YoY growth, and mar-tech revenue slightly increased YoY - The group's fundamentals continue to improve, with significant development in AI and machine learning-driven smart bidding systems, and Mintegral has launched smart bidding features such as Target ROAS, Hybrid ROAS, IAP ROAS, and Target CPE[58](index=58&type=chunk)[59](index=59&type=chunk) - Smart bidding products contribute over **80%** of Mintegral's total transaction volume, serving as the core driver for Mintegral's revenue and profit growth[60](index=60&type=chunk) H1 2025 Business Revenue Growth | Metric | H1 2025 YoY Growth | | :--- | :--- | | Mintegral Revenue | 48.6% | | Non-Programmatic Advertising Revenue | 24.6% | | Ad-tech Net Revenue | 55.3% | | Mar-tech Revenue | 1.1% | [Committed to Becoming a Growth Hub for Small and Medium-sized Developers](index=20&type=section&id=5.5.1%20Committed%20to%20Becoming%20a%20Growth%20Hub%20for%20Small%20and%20Medium-sized%20Developers) The company's mission has evolved to become a 'Growth Hub' for small and medium-sized developers, leveraging its SaaS toolset to address global expansion challenges across various regions and stages, filling gaps in global market resources, experience, and capabilities; Mintegral's Ads SDK integrated developer count surged from under **20,000** in early 2022 to over **110,000** by June 2025, significantly increasing penetration - The company's mission has upgraded to become a 'Growth Hub' for small and medium-sized developers, helping them solve global growth challenges through a SaaS toolset[61](index=61&type=chunk) - Mintegral's Ads SDK integrated developer count increased from less than **20,000** in early 2022 to over **110,000** by the end of June 2025, significantly boosting penetration[61](index=61&type=chunk) [Further Refine Smart Bidding System](index=20&type=section&id=5.5.2%20Further%20Refine%20Smart%20Bidding%20System) The company continues to refine its smart bidding system, expanding from shallow user behavior bidding to deep event-based smart bidding products to meet the needs of mid-to-heavy games and other verticals; Mintegral has launched Target ROAS, Target CPE, Hybrid ROAS, and IAP ROAS optimization strategies, making smart bidding a mainstream choice for advertisers on the platform, helping achieve breakthroughs in mid-to-heavy games and non-gaming verticals, and expanding growth potential - The company continues to refine its smart bidding system, expanding from shallow user behavior bidding to deep event-based smart bidding to meet the needs of mid-to-heavy games and other verticals[62](index=62&type=chunk) - Mintegral has launched Target ROAS, Target CPE, Hybrid ROAS, and IAP ROAS optimization strategies, making smart bidding a mainstream choice that helps the platform achieve breakthroughs in mid-to-heavy games and non-gaming verticals, expanding its growth ceiling[63](index=63&type=chunk) [Gaming Category Revenue Steady Growth, Non-Gaming Category Rapid Growth](index=21&type=section&id=5.5.3%20Gaming%20Category%20Revenue%20Steady%20Growth%2C%20Non-Gaming%20Category%20Rapid%20Growth) During the reporting period, gaming category revenue reached **USD 661.5 million**, a **51.7%** YoY increase, contributing **73.8%** to Mintegral's total revenue, primarily driven by hybrid monetization games; non-gaming category revenue reached **USD 235.5 million**, growing **40.6%** YoY, thanks to the smart bidding system's development, achieving breakthroughs in mid-to-heavy games, e-commerce, and tool categories, with the Mintegral platform seeing simultaneous revenue and profit growth Mintegral Business Revenue by Mobile Application Type (H1 2025 vs H1 2024) | Application Type | H1 2025 Revenue (USD thousand) | H1 2024 Revenue (USD thousand) | YoY Change | H1 2025 Share | | :--- | :--- | :--- | :--- | :--- | | Gaming | 661,538 | 436,208 | 51.7% | 73.8% | | Non-Gaming | 235,500 | 167,464 | 40.6% | 26.2% | | **Total** | **897,038** | **603,672** | **48.6%** | **100.0%** | - Hybrid monetization games are the primary driver for Mintegral's gaming category revenue, while the non-gaming category has achieved breakthroughs in mid-to-heavy games, e-commerce, and tool verticals, benefiting from the development of the smart bidding system[64](index=64&type=chunk) [Client Testimonials](index=26&type=section&id=Client%20Testimonials) The report showcases strong client testimonials from Gamehaus, ReelShort, and VigaFun, highlighting Mintegral platform and XMP tool's exceptional performance in enhancing user engagement, retention, ROI optimization, delivery efficiency, and user acquisition quality - Gamehaus praised Mintegral's Target CPE strategy for significantly improving paid user acquisition efficiency and ROI stability[78](index=78&type=chunk) - ReelShort commended the XMP cross-channel delivery tool for significantly reducing repetitive tasks and boosting team collaboration efficiency by **30%**[83](index=83&type=chunk) - VigaFun praised Mintegral's machine learning and algorithm optimization capabilities for helping them identify and acquire target user groups in a short period, achieving high retention rates and rapid break-even[87](index=87&type=chunk) [Future Strategy: Committed to Building an Ad-tech and Mar-tech Ecosystem](index=22&type=section&id=Future%20Strategy%3A%20Committed%20to%20Building%20an%20Ad-tech%20and%20Mar-tech%20Ecosystem) The company's future strategy focuses on building a comprehensive Ad-tech and Mar-tech ecosystem, aiming to become a "Growth Hub" for developers by enhancing the Mintegral platform, upgrading Mar-tech products, maintaining global expansion, prioritizing data privacy, and embracing AI trends - The company's vision is to become a 'Growth Hub' for developers, helping small and medium-sized developers solve problems related to promotion, monetization, data insights, and cloud cost optimization through its Ad-tech and Mar-tech ecosystem[65](index=65&type=chunk) [Continuously Strengthening Mintegral Platform's Competitive Advantage in Ad-tech](index=22&type=section&id=6.1.%20Continuously%20Strengthening%20Mintegral%20Platform's%20Competitive%20Advantage%20in%20Ad-tech) Mintegral will enhance its competitive edge in Ad-tech by integrating algorithms with creative optimization, increasing investment in dynamic creative optimization for personalized ad experiences, improving user interaction and acquisition efficiency, and continuously upgrading its deep learning-based smart bidding system to meet hybrid monetization and cross-category (e.g., e-commerce, tools) delivery needs, solidifying its leadership in casual games and expanding into more verticals - Mintegral will enhance user interaction and acquisition efficiency by leveraging algorithm-creative synergy, increasing investment in dynamic creative optimization to achieve personalized creative displays[66](index=66&type=chunk) - The company will continuously enhance its algorithm capabilities to build a deep learning-based smart bidding system, meeting the delivery needs of hybrid monetization and cross-categories (e.g., e-commerce, tools)[66](index=66&type=chunk)[67](index=67&type=chunk) [Comprehensively Upgrading Mar-tech Product System, Enhancing Mobvista's Service Capabilities in Mar-tech](index=23&type=section&id=6.2.%20Comprehensively%20Upgrading%20Mar-tech%20Product%20System%2C%20Enhancing%20Mobvista's%20Service%20Capabilities%20in%20Mar-tech) The company will enrich its Mar-tech product matrix, enhance ad performance monitoring capabilities, achieve closed-loop user acquisition services, and use data to feed back into the Mintegral platform for optimization and iteration; simultaneously, it will promote SaaS product global expansion, further implementing its globalization strategy to provide superior and more cost-effective SaaS product services to global clients - The company will enrich its Mar-tech product matrix, enhance ad performance monitoring capabilities, achieve closed-loop user acquisition services, and optimize the Mintegral platform through data feedback[68](index=68&type=chunk) - The company will promote SaaS product global expansion, further implementing its globalization strategy to provide superior and more cost-effective SaaS product services to global clients[68](index=68&type=chunk) [Adhering to Globalization Strategy](index=23&type=section&id=6.3.%20Adhering%20to%20Globalization%20Strategy) Mobvista consistently pursues a global platform strategy, ensuring its technology serves all global markets; with years of deep cultivation in overseas markets, over **99%** of its traffic (reached devices) originates from abroad, and the company will continue to strengthen its brand image in the Asia-Pacific region while implementing localized strategies in EMEA and the Americas to actively expand market share - The company adheres to a global platform strategy, with over **99%** of its traffic originating from overseas, and will continue to strengthen its brand image in the Asia-Pacific region while implementing localized strategies in EMEA and the Americas[69](index=69&type=chunk) [Committed to Data and Privacy Protection](index=23&type=section&id=6.4.%20Committed%20to%20Data%20and%20Privacy%20Protection) Mobvista prioritizes data security and privacy protection, with its algorithms primarily relying on contextual information modeling and not collecting personally identifiable data; the Mintegral platform has obtained multiple industry-recognized privacy certifications (e.g., SOC2 Type1/Type2, SOC3, ISO27001, kidSAFE + COPPA), continuously validating its products and technology to build a moat around user data privacy, safeguard user rights, and uphold these as pillars of sound corporate governance and long-term client trust - The company prioritizes data security and privacy protection, with algorithms primarily relying on contextual information modeling and not collecting personally identifiable data[70](index=70&type=chunk) - The Mintegral platform has obtained multiple industry-recognized privacy certifications (e.g., SOC2 Type1/Type2, SOC3, ISO27001, kidSAFE + COPPA), safeguarding user rights[71](index=71&type=chunk) [Embracing the AI Megatrend](index=24&type=section&id=6.5.%20Embracing%20the%20AI%20Megatrend) Mobvista actively embraces the industry transformation driven by AI, with deep strategic deployments across marketing technology products, daily R&D and operations, and advertising technology; it leverages LLM/AIGC to reconstruct marketing services, with Playturbo supporting AI voiceover, translation, and image generation for creative automation, introduces large model technology to build a DevOps Copilot system and launches the Autopilot system MaxAgent for R&D operations, and utilizes machine learning in Mintegral for personalized and intelligent ad recommendations, upgrading to an ROI-based smart bidding model - The company actively embraces the AI megatrend, with deep strategic deployments across marketing technology products, daily R&D and operations, and advertising technology[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - Marketing technology products leverage LLM/AIGC to reconstruct services, with Playturbo supporting AI voiceover, translation, and image generation for creative automation[73](index=73&type=chunk) - In R&D and operations, large model technology is introduced to build a DevOps Copilot system, and the Autopilot system MaxAgent has been launched[74](index=74&type=chunk) - In advertising technology, Mintegral utilizes machine learning to achieve personalized and intelligent ad recommendations, upgrading to an ROI-based smart bidding model[74](index=74&type=chunk) [Financial Performance Analysis](index=28&type=section&id=Financial%20Performance%20Analysis) This section analyzes the company's financial performance, covering revenue, cost of sales, gross profit, operating expenses, operating profit, cash flow, and capital structure H1 2025 Revenue Overview | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 938,111 | 638,287 | 47.0% | | Ad-tech Revenue | 929,317 | 629,588 | 47.6% | | Mar-tech Revenue | 8,794 | 8,699 | 1.1% | - The group's revenue primarily comes from the Ad-tech business, accounting for **99.1%** of total revenue[93](index=93&type=chunk) [Revenue](index=28&type=section&id=Revenue) For the six months ended June 30, 2025, group revenue reached **USD 938.1 million**, a **47.0%** YoY increase, primarily driven by the Ad-tech business, which accounted for **99.1%** of total revenue; Mar-tech revenue saw a slight **1.1%** YoY increase, while programmatic advertising (Mintegral) revenue surged **48.6%** YoY, and non-programmatic advertising revenue rose **24.6%** YoY, with Mintegral's revenue predominantly from gaming (**73.8%**) and rapidly growing non-gaming categories, and Ad-tech revenue exhibiting a diversified regional structure, with Asia-Pacific (excluding Singapore) being the largest contributor, and statistics and analytics being the highest revenue contributor within Mar-tech [Revenue Model](index=28&type=section&id=1.1.%20Revenue%20Model) Ad-tech business revenue is typically performance-based, charged to clients for marketing promotion effects (e.g., user downloads, installations, registrations, client-set ROAS targets, and subsequent user behaviors); Mar-tech businesses (GameAnalytics, Heat Cloud Data) use monthly subscription fees, additional MAU usage fees, usage-based fees, and subscription models - Ad-tech business revenue is charged based on marketing promotion effectiveness, while Mar-tech businesses (GameAnalytics, Heat Cloud Data) adopt subscription fees, usage-based fees, and other models[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [Revenue Recognition Principles](index=29&type=section&id=1.2.%20Revenue%20Recognition%20Principles) Ad-tech business revenue is generally recognized on a gross basis as the company is primarily responsible for performance delivery; for subscription-based or usage-based software in Mar-tech, revenue is typically recognized proportionally or by usage over the contract period, while SpotMax revenue is recognized based on the actual amount of cloud computing resources managed for clients on the platform - Ad-tech business revenue is generally recognized on a gross basis; Mar-tech businesses (subscription-based, usage-based, SpotMax) recognize revenue proportionally/by usage or based on actual managed resource volume[94](index=94&type=chunk) [Revenue by Service Type](index=29&type=section&id=1.3.%20Revenue%20by%20Service%20Type) During the reporting period, Ad-tech business revenue was **USD 929.3 million**, a **47.6%** YoY increase, accounting for **99.1%** of total group revenue; Mar-tech business revenue was **USD 8.8 million**, a **1.1%** YoY increase, accounting for **0.9%** of total group revenue, indicating the group's revenue is primarily driven by Ad-tech H1 2025 Revenue by Service Type | Service Type | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Ad-tech Revenue | 929,317 | 99.1% | 629,588 | 98.6% | 47.6% | | Mar-tech Revenue | 8,794 | 0.9% | 8,699 | 1.1% | 1.1% | | **Total** | **938,111** | **100.0%** | **638,287** | **100.0%** | **47.0%** | [Ad-tech Net Revenue](index=30&type=section&id=2.%20Ad-tech%20Net%20Revenue) During the reporting period, the group recorded Ad-tech business revenue of **USD 929.3 million** and Ad-tech net revenue of **USD 245.1 million**, with net revenue defined as adjusted revenue after deducting costs allocated to traffic publishers, not measured under IFRS standards Ad-tech Net Revenue (H1 2025 vs H1 2024) | Metric | H1 2025 (USD thousand) | H1 2024 (USD thousand) | | :--- | :--- | :--- | | Ad-tech Revenue | 929,317 | 629,588 | | Ad-tech Net Revenue | 245,109 | 157,837 | - Net revenue is defined as adjusted revenue after deducting costs allocated to traffic publishers, not measured under IFRS standards[95](index=95&type=chunk) [Ad-tech Revenue by Business Segment](index=31&type=section&id=3.%20Ad-tech%20Revenue%20by%20Business%20Segment) During the reporting period, Ad-tech business revenue increased **47.6%** YoY to **USD 929.3 million**, with programmatic advertising revenue from Mintegral at **USD 897.0 million**, accounting for **96.5%** of Ad-tech revenue and growing **48.6%** YoY; non-programmatic advertising revenue was **USD 32.3 million**, accounting for **3.5%** of Ad-tech revenue and increasing **24.6%** YoY, highlighting programmatic business as a key development focus and significant profit source for the group Ad-tech Revenue by Business Segment (H1 2025 vs H1 2024) | Business Segment | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Programmatic Advertising Business | 897,038 | 96.5% | 603,672 | 95.9% | 48.6% | | Non-Programmatic Advertising Business | 32,279 | 3.5% | 25,916 | 4.1% | 24.6% | | **Total Ad-tech Revenue** | **929,317** | **100.0%** | **629,588** | **100.0%** | **47.6%** | - Programmatic advertising business (Mintegral) is a key development focus and significant profit source for the group, while non-programmatic advertising business also serves as a stable profit source[97](index=97&type=chunk) [Key Financial Data for Programmatic Advertising Business Mintegral Platform](index=32&type=section&id=3.1.%20Key%20Financial%20Data%20for%20Programmatic%20Advertising%20Business%20Mintegral%20Platform) During the reporting period, the Mintegral platform recorded revenue of **USD 897.0 million**, a **48.6%** YoY increase from 2024, with Q2 2025 revenue at **USD 476.3 million**, showing a **48.8%** YoY and **13.2%** QoQ change; the group's mid-term strategic goal of platform scale growth and multi-vertical expansion is gradually yielding results Mintegral Platform Business Revenue (Quarterly and Semi-Annual) | Period | Revenue (USD thousand) | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | H1 2025 | 897,038 | 6.9% | 48.6% | | Q2 2025 | 476,281 | 13.2% | 48.8% | | Q1 2025 | 420,757 | (3.7%) | 48.4% | | H2 2024 | 839,421 | 39.1% | 63.8% | | Q4 2024 | 436,910 | 8.5% | 69.9% | | Q3 2024 | 402,511 | 25.7% | 57.6% | - The group's mid-term strategic goal of platform scale growth and multi-vertical expansion is gradually yielding results[99](index=99&type=chunk) [Mintegral Business Revenue by Mobile Application Type](index=33&type=section&id=4.%20Mintegral%20Business%20Revenue%20by%20Mobile%20Application%20Type) During the reporting period, Mintegral's gaming category revenue reached **USD 661.5 million**, a **51.7%** YoY increase, accounting for **73.8%** of Mintegral's business revenue; non-gaming category revenue reached **USD 235.5 million**, growing **40.6%** YoY, accounting for **26.2%**, as the group continues to enhance scenario coverage, actively expand into diverse verticals, and refine operations for mature application types, laying a foundation for long-term development Mintegral Business Revenue by Mobile Application Type (H1 2025 vs H1 2024) | Application Type | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Gaming | 661,538 | 73.8% | 436,208 | 72.2% | 51.7% | | Non-Gaming | 235,500 | 26.2% | 167,464 | 27.8% | 40.6% | | **Total Mintegral Platform Business Revenue** | **897,038** | **100.0%** | **603,672** | **100.0%** | **48.6%** | - The group continues to enhance scenario coverage, actively expand into diverse verticals, and refine operations for mature application types, deepening its competitive moat[100](index=100&type=chunk) [Ad-tech Revenue by Region](index=34&type=section&id=5.%20Ad-tech%20Revenue%20by%20Region) During the reporting period, Ad-tech business revenue exhibited a diversified regional structure, spanning approximately **130** countries and regions globally; Asia-Pacific (excluding Singapore) contributed the most with **USD 433.4 million**, a **50.7%** YoY increase, accounting for **46.6%**; Singapore revenue was **USD 98.6 million**, up **83.7%** YoY, accounting for **10.6%**; and other regions contributed **USD 397.3 million**, growing **37.8%** YoY, accounting for **42.8%** Ad-tech Revenue by Region (H1 2025 vs H1 2024) | Region | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Singapore | 98,627 | 10.6% | 53,693 | 8.5% | 83.7% | | Asia-Pacific (excluding Singapore) | 433,354 | 46.6% | 287,642 | 45.7% | 50.7% | | Other Regions | 397,336 | 42.8% | 288,253 | 45.8% | 37.8% | | **Total Ad-tech Revenue** | **929,317** | **100.0%** | **629,588** | **100.0%** | **47.6%** | - Ad-tech business revenue has a diversified regional structure, spanning approximately **130** countries and regions globally[104](index=104&type=chunk) [Mar-tech Revenue by Type](index=35&type=section&id=6.%20Mar-tech%20Revenue%20by%20Type) During the reporting period, Mar-tech business revenue was categorized into statistics and analytics, creative management, ad delivery services, and computing power optimization; statistics and analytics generated the highest revenue at **USD 3.594 million**, accounting for **40.9%** of total Mar-tech business revenue Mar-tech Revenue by Type (H1 2025) | Revenue Type | Revenue (USD thousand) | Share | | :--- | :--- | :--- | | Statistics and Analytics | 3,594 | 40.9% | | Creative Management | 3,352 | 38.1% | | Ad Delivery Services | 1,558 | 17.7% | | Computing Power Optimization | 290 | 3.3% | | **Total** | **8,794** | **100.0%** | [Cost of Sales](index=35&type=section&id=Cost%20of%20Sales) During the reporting period, cost of sales increased **45.3%** YoY to **USD 737.0 million**, primarily due to higher traffic and server costs from the expanded Ad-tech business and increased amortization of capitalized intangible assets; Ad-tech business costs accounted for **79.0%** of its revenue, while Mar-tech business costs accounted for **28.2%** of its revenue Cost of Sales (H1 2025 vs H1 2024) | Cost Type | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Ad-tech Business | 734,502 | 79.0% | 505,248 | 80.2% | 45.4% | | - Traffic Costs | 684,208 | 73.6% | 471,751 | 74.9% | 45.0% | | - Other Business Costs | 50,294 | 5.4% | 33,497 | 5.3% | 50.1% | | Mar-tech Business | 2,484 | 28.2% | 1,838 | 21.1% | 35.1% | | **Total** | **736,986** | **78.6%** | **507,086** | **79.4%** | **45.3%** | - The increase in cost of sales was primarily due to higher traffic and server costs resulting from the expanded Ad-tech business, as well as increased amortization of intangible assets[107](index=107&type=chunk) [Gross Profit and Gross Margin](index=36&type=section&id=Gross%20Profit%20and%20Gross%20Margin) During the reporting period, the group recorded a gross profit of **USD 201.1 million**, a **53.3%** YoY increase, with a gross margin of **21.4%**, up from **20.6%** in H1 2024; Ad-tech business gross profit increased **56.7%** YoY to **USD 194.8 million**, with a gross margin of **21.0%**, while Mar-tech business gross profit was **USD 6.3 million**, with a gross margin of **71.8%** Gross Profit and Gross Margin (H1 2025 vs H1 2024) | Business Type | 2025 Gross Profit (USD thousand) | 2025 Gross Margin | 2024 Gross Profit (USD thousand) | 2024 Gross Margin | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Ad-tech Business | 194,815 | 21.0% | 124,340 | 19.7% | 56.7% | | Mar-tech Business | 6,310 | 71.8% | 6,861 | 78.9% | (8.0%) | | **Total** | **201,125** | **21.4%** | **131,201** | **20.6%** | **53.3%** | [Selling and Marketing Expenses](index=37&type=section&id=Selling%20and%20Marketing%20Expenses) During the reporting period, selling and marketing expenses increased **22.8%** YoY to **USD 35.1 million**, primarily due to higher bidding fees as Mintegral platform revenue expanded, including **USD 0.1 million** in share-based compensation - Selling and marketing expenses increased **22.8%** YoY to **USD 35.1 million**, primarily due to higher bidding fees resulting from the expanded revenue scale of the Mintegral platform[112](index=112&type=chunk) - Selling and marketing expenses include **USD 0.1 million** in share-based compensation[114](index=114&type=chunk) [Research and Development Expenses](index=37&type=section&id=Research%20and%20Development%20Expenses) During the reporting period, expensed R&D increased **39.0%** YoY to **USD 87.3 million**, mainly due to higher model training costs from aggressive development of the smart bidding system; total R&D expenses (expensed and capitalized) were **USD 113.9 million**, up **17.8%** YoY, including **USD 2.3 million** in share-based compensation - Expensed R&D increased **39.0%** YoY to **USD 87.3 million**, primarily due to higher model training costs from aggressive development of the smart bidding system[115](index=115&type=chunk) - Total R&D expenses (expensed + capitalized) were **USD 113.9 million**, up **17.8%** YoY, including **USD 2.3 million** in share-based compensation[115](index=115&type=chunk) [General and Administrative Expenses](index=38&type=section&id=General%20and%20Administrative%20Expenses) During the reporting period, general and administrative expenses increased **20.0%** YoY to **USD 35.4 million**, primarily due to an increase in expected credit loss provisions - General and administrative expenses increased **20.0%** YoY to **USD 35.4 million**, primarily due to an increase in expected credit loss provisions[116](index=116&type=chunk) [Operating Expenses](index=38&type=section&id=Operating%20Expenses) During the reporting period, total operating expenses were **USD 167.6 million**, comprising **USD 118.0 million** in variable expenses, **USD 46.0 million** in fixed expenses (excluding share-based compensation), and **USD 3.6 million** in share-based compensation Operating Expenses (H1 2025 vs H1 2024) | Expense Type | June 30, 2025 (USD thousand) | June 30, 2024 (USD thousand) | | :--- | :--- | :--- | | Variable Expenses | 117,977 | 84,549 | | Fixed Expenses (excluding share-based compensation) | 46,023 | 43,888 | | Share-based compensation | 3,634 | 4,239 | | **Total** | **167,634** | **132,676** | [Operating Profit](index=38&type=section&id=Operating%20Profit) During the reporting period, operating profit was **USD 46.9 million**, a significant **254.3%** YoY increase; excluding the impact of depreciation and amortization, share-based compensation, one-off loss from discontinuing certain non-programmatic businesses, arbitration-related fees for Heat Cloud Data, foreign exchange loss/(gain), and fair value gain/(loss) on financial assets measured at fair value through profit or loss, adjusted EBITDA increased **41.0%** YoY to **USD 88.7 million** Operating Profit (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Profit | 46,916 | 13,243 | 254.3% | | Adjusted EBITDA | 88,681 | 62,881 | 41.0% | [Quarterly Net Profit/(Loss), Adjusted EBITDA](index=39&type=section&id=Quarterly%20Net%20Profit%2F(Loss)%2C%20Adjusted%20EBITDA) Net profit for Q2 2025 was **USD 12.4 million**, compared to **USD 19.9 million** in Q1; Adjusted EBITDA for Q2 2025 was **USD 47.0 million**, up from **USD 41.7 million** in Q1, showing a continuous growth trend Quarterly Net Profit/(Loss) and Adjusted EBITDA | Period | Net Profit/(Loss) (USD thousand) | Adjusted EBITDA (USD thousand) | | :--- | :--- | :--- | | June 30, 2025 | 12,402 | 46,961 | | March 31, 2025 | 19,882 | 41,720 | | December 31, 2024 | (2,369) | 41,104 | | September 30, 2024 | 8,843 | 34,269 | | June 30, 2024 | 183 | 32,184 | | March 31, 2024 | 7,154 | 30,697 | [Net Cash Flow from Operating Activities](index=39&type=section&id=Net%20Cash%20Flow%20from%20Operating%20Activities) During the reporting period, net cash flow from operating activities was **USD 83.9 million**, a **29.3%** YoY decrease, primarily due to the company's proactive adjustment of working capital management from a tight model to a normalized strategy for sustainable growth, adopting more flexible payment arrangements to strengthen client and supplier relationships and enhance developer satisfaction and market competitiveness Net Cash Flow from Operating Activities (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 83,895 | 118,734 | (29.3%) | - The decrease in operating cash flow was due to the company's proactive adjustment of working capital management strategy, adopting more flexible payment arrangements to strengthen cooperative relationships and enhance market competitiveness[121](index=121&type=chunk) [Finance Costs](index=40&type=section&id=Finance%20Costs) During the reporting period, the group's finance costs decreased **42.2%** YoY to **USD 2.3 million** Finance Costs (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Finance Costs | 2,297 | 3,976 | (42.2%) | [Income Tax](index=40&type=section&id=Income%20Tax) During the reporting period, the group recorded an income tax expense of **USD 8.8 million**, compared to **USD 2.0 million** in H1 2024 Income Tax Expense (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Income Tax Expense | 8,781 | 2,031 | [Profit Attributable to Equity Holders of the Company for the Period](index=40&type=section&id=Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company%20for%20the%20Period) During the reporting period, profit attributable to equity holders of the company was **USD 32.3 million**, a significant **248.4%** YoY increase from **USD 9.3 million** in H1 2024 Profit Attributable to Equity Holders of the Company (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company | 32,284 | 9,267 | 248.4% | [Other Financial Information (Non-IFRS Measures)](index=40&type=section&id=Other%20Financial%20Information%20(Non-IFRS%20Measures)) During the reporting period, the group's Adjusted EBITDA was **USD 88.7 million**, a **41.0%** YoY increase, and adjusted net profit was **USD 37.9 million**, a **219.7%** YoY increase; these non-IFRS measures supplement IFRS financial statements to better reflect operating performance by excluding items deemed non-indicative by management Non-IFRS Measures (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Revenue | 253,903 | 27.1% | 166,536 | 26.1% | 52.5% | | Operating Profit | 46,916 | 5.0% | 13,243 | 2.1% | 254.3% | | EBITDA | 83,941 | 8.9% | 51,065 | 8.0% | 64.4% | | Adjusted EBITDA | 88,681 | 9.5% | 62,881 | 9.9% | 41.0% | | Profit for the Period | 32,284 | 3.4% | 7,337 | 1.1% | 340.0% | | Adjusted Net Profit | 37,854 | 4.0% | 11,842 | 1.9% | 219.7% | - Non-IFRS measures are used to supplement IFRS statements, providing a better comparison of operating performance across different periods by excluding the impact of specific items[126](index=126&type=chunk) [Capital Structure and Gearing Ratio](index=42&type=section&id=Capital%20Structure%20and%20Gearing%20Ratio) As of June 30, 2025, the company's authorized share capital was **USD 100 million**, with 1,574,154,164 ordinary shares issued; total assets were **USD 822.2 million**, total liabilities were **USD 564.7 million**, and the gearing ratio was **68.7%**, lower than **72.7%** as of December 31, 2024, with the group's primary capital management objective being to ensure continuous operation, provide shareholder returns through appropriate product pricing, and obtain financing at reasonable costs - As of June 30, 2025, the company had **1,574,154,164** ordinary shares issued[130](index=130&type=chunk) Gearing Ratio (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Total Assets | 822,200 | 814,700 | | Total Liabilities | 564,700 | 592,300 | | Gearing Ratio | 68.7% | 72.7% | - The group's capital management objective is to ensure continuous operation, providing returns to shareholders through reasonable pricing and financing[130](index=130&type=chunk) [Liquidity and Financial Resources](index=43&type=section&id=Liquidity%20and%20Financial%20Resources) The company's cash requirements are primarily met by shareholder contributions, cash generated from operations, and bank loans; as of June 30, 2025, cash and cash equivalents were **USD 139.1 million**, a decrease from **USD 167.8 million** as of December 31, 2024 Cash and Cash Equivalents (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 139,147 | 167,817 | [Capital Expenditure](index=43&type=section&id=Capital%20Expenditure) During the reporting period, total capital expenditure was **USD 26.8 million**, primarily for intangible assets and development expenditure (**USD 26.6 million**), representing a **21.2%** YoY decrease Capital Expenditure (H1 2025 vs H1 2024) | Category | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 151 | 102 | | Intangible Assets and Development Expenditure | 26,644 | 33,907 | | **Total** | **26,795** | **34,009** | [Other Information](index=44&type=section&id=Other%20Information) This section covers other important information including significant investments, pledged assets, contingent liabilities, employee and remuneration policies, foreign exchange risk management, major clients and suppliers, interim dividends, corporate governance, and post-reporting period events [Significant Investments Held, Major Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=44&type=section&id=Significant%20Investments%20Held%2C%20Major%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the reporting period, the group held no significant investments, nor did it undertake any major acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the group held no significant investments, nor did it undertake any major acquisitions or disposals of subsidiaries, associates, or joint ventures[135](index=135&type=chunk) [Pledged Assets of the Group](index=44&type=section&id=Pledged%20Assets%20of%20the%20Group) As of June 30, 2025, the group had no assets pledged to any individuals or financial institutions, except for restricted cash of **USD 5.2 million** related to bank borrowings and other bank deposits - As of June 30, 2025, the group had no other pledged assets apart from restricted cash of **USD 5.2 million**[136](index=136&type=chunk) [Major Investments or Future Major Investment Plans](index=44&type=section&id=Major%20Investments%20or%20Future%20Major%20Investment%20Plans) As of June 30, 2025, the group held no major investments and had no specific plans for future major investments or capital assets - As of June 30, 2025, the group held no major investments and had no specific plans for future major investments or capital assets[137](index=137&type=chunk) [Contingent Liabilities and Financial Guarantees](index=44&type=section&id=Contingent%20Liabilities%20and%20Financial%20Guarantees) As of June 30, 2025, the group had not granted any contingent liabilities or financial guarantees to third parties - As of June 30, 2025, the group had not granted any contingent liabilities or financial guarantees to third parties[138](index=138&type=chunk) [Employees and Remuneration Policy](index=44&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the group had **667** full-time employees globally, a decrease from **711** as of December 31, 2024, primarily due to continuous AI empowerment and strategic team streamlining, significantly improving overall human efficiency; the group has systematic recruitment procedures, offers competitive benefits and training opportunities, and determines employee salaries based on market conditions, individual performance, qualifications, and experience, with performance bonuses and share awards based on appraisal ratings - As of June 30, 2025, the group had **667** full-time employees globally, a decrease from **711** as of December 31, 2024, primarily due to continuous AI empowerment and strategic team streamlining, which significantly improved overall human efficiency[139](index=139&type=chunk) - The company provides competitive compensation, benefits, and training, with performance bonuses and share awards determined based on performance appraisals[139](index=139&type=chunk) [Foreign Exchange Risk Management](index=45&type=section&id=Foreign%20Exchange%20Risk%20Management) The group is primarily exposed to currency risk from receivables, payables, and cash balances denominated in currencies other than USD, managing this risk through regular review of foreign exchange exposures; in 2024, the company entered into a partially cancellable foreign exchange forward contract with HSBC Bank (China) Company Limited to reduce hedging costs - The group is primarily exposed to currency risk from balances denominated in currencies other than USD, which is managed through regular review of foreign exchange exposures[140](index=140&type=chunk) - In 2024, the company entered into a partially cancellable foreign exchange forward contract with HSBC Bank (China) Company Limited, aiming to reduce hedging costs[140](index=140&type=chunk) [Major Clients and Suppliers](index=45&type=section&id=Major%20Clients%20and%20Suppliers) For the six months ended June 30, 2025, the group's top five clients accounted for approximately **10.0%** of total revenue, with the largest client contributing **2.6%**; the top five suppliers accounted for approximately **19.9%** of total purchases, with the largest supplier contributing **4.4%**; to the best of the directors' knowledge, no directors, their associates, or any shareholders (owning more than **5%** of the company's share capital) held interests in the top five clients and suppliers - During the reporting period, the top five clients accounted for approximately **10.0%** of total revenue, with the largest client contributing **2.6%**[141](index=141&type=chunk) - The top five suppliers accounted for approximately **19.9%** of total purchases, with the largest supplier contributing **4.4%**[141](index=141&type=chunk) - To the best of the directors' knowledge, no directors, their associates, or any shareholders (owning more than **5%** of the company's share capital) held interests in the group's top five clients and suppliers[141](index=141&type=chunk) [Interim Dividend](index=45&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[142](index=142&type=chunk) [Compliance with Corporate Governance Code](index=46&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The group is committed to maintaining high corporate governance standards to protect shareholder interests and enhance corporate value and accountability; the company has adopted the Corporate Governance Code (CGC) set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited (SEHK) as its own corporate governance code and has voluntarily adopted certain recommended best practices to continuously improve its corporate governance level - The group has adopted the Corporate Governance Code set out in Appendix C1 of the SEHK Listing Rules and has voluntarily adopted certain recommended best practices to continuously enhance its corporate governance standards[143](index=143&type=chunk) [Model Code](index=46&type=section&id=Model%20Code) The group has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (Model Code) as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions; following specific inquiries to all directors, each director confirmed compliance with the Model Code during the reporting period, and no instances of non-compliance by employees who may possess inside information were noted - The group has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors have confirmed compliance[144](index=144&type=chunk) [Purchase, Sale and Redemption of the Company's Listed Securities](index=46&type=section&id=Purchase%2C%20Sale%20and%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares (including the sale of treasury shares), and the company held no treasury shares at the end of the reporting period - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares, and no treasury shares were held at the end of the reporting period[145](index=145&type=chunk) [Audit Committee](index=46&type=section&id=Audit%20Committee) The Audit Committee has reviewed the group's adopted accounting principles and practices, discussed financial reporting matters and internal control systems, including the review and approval of the group's unaudited interim results for the six months ended June 30, 2025 - The Audit Committee has reviewed the group's accounting principles, financial reporting matters, and internal control systems, and has reviewed and approved the unaudited interim results for the six months ended June 30, 2025[146](index=146&type=chunk) [Events After Reporting Period](index=46&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the group have occurred since the end of the reporting period - No significant events affecting the group have occurred since the end of the reporting period[147](index=147&type=chunk) [Impact of US Data Protection Act and Response](index=47&type=section&id=Impact%20of%20US%20Data%20Protection%20Act%20and%20Response) The US 'Protecting Americans' Data from Foreign Adversaries Act' and related regulations have taken effect, potentially imposing stricter compliance requirements on the company's Mintegral and Mar-tech businesses; currently, data access channels remain open, and business operations under the existing regulatory framework have not been substantially affected, but the company is closely monitoring developments and evaluating measures to address potential risks - The US 'Protecting Americans' Data from Foreign Adversaries Act' passed by Congress and related regulatory frameworks have taken effect, potentially subjecting the company's Mintegral and Mar-tech businesses to stricter compliance requirements[148](index=148&type=chunk) - Currently, data access channels remain open, and business operations have not been substantially affected under the existing regulatory framework, but the company is closely monitoring geopolitical developments and evaluating measures to address potential risks[148](index=148&type=chunk) [Publication of 2025 Interim Results and Interim Report](index=47&type=section&id=Publication%20of%202025%20Interim%20Results%20and%20Interim%20Report) This interim results announcement has been published on the SEHK website and the company's website; the interim report for this reporting period will be dispatched to the company's shareholders (upon request) and published on the aforementioned websites in September 2025 - This interim results announcement has been published on the SEHK website and the company's website, and the interim report will be dispatched to shareholders and published in September 2025[149](index=149&type=chunk) [Interim Financial Statements and Notes](index=48&type=section&id=Interim%20Financial%20Statements%20and%20Notes) This section presents the unaudited interim financial statements and their detailed notes for the six months ended June 30, 2025, including the consolidated statement of profit or loss, statement of comprehensive income, and statement of financial position - This section provides the unaudited consolidated financial statements and their detailed notes for the six months ended June 30, 2025[150](index=150&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) [Consolidated Statement of Profit or Loss](index=48&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company reported revenue of **USD 938.1 million**, gross profit of **USD 201.1 million**, operating profit of **USD 46.9 million**, profit for the period of **USD 32.3 million**, and basic earnings per share of **2.12 US cents** Consolidated Statement of Profit or Loss Key Data (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Revenue | 938,111 | 638,287 | | Cost of Sales | (736,986) | (507,086) | | Gross Profit | 201,125 | 131,201 | | Selling and Marketing Expenses | (35,103) | (28,585) | | Research and Development Expenses | (87,274) | (62,782) | | General and Administrative Expenses | (35,379) | (29,489) | | Operating Profit | 46,916 | 13,243 | | Profit for the Period | 32,284 | 7,337 | | Basic Earnings Per Share (US cents) | 2.12 | 0.61 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=49&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20O

Financial Highlights [Interim Results for the Six Months Ended June 30, 2025](index=1&type=section&id=Interim%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) The group announced unaudited interim results, reporting decreased revenue, improved gross margin, a slight profit decline attributable to owners, and an interim dividend Key Financial Data for H1 2025 | Metric | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,874.2 | 3,265.4 | -12.0% | | Gross profit | 484.3 | 477.7 | +1.4% | | Profit attributable to owners of the Company | 80.8 | 82.4 | -1.9% | | Basic EPS | 0.06 HKD | 0.06 HKD | 0% | | Interim Dividend (per share) | 2.60 HK cents | - | - | Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Group revenue decreased by 12.0%, gross profit slightly increased, and profit for the period decreased, while total comprehensive income significantly rose Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,874,220 | 3,265,383 | -12.0% | | Cost of sales and services | (2,389,963) | (2,787,685) | -14.3% | | Gross profit | 484,257 | 477,698 | +1.4% | | Other income | 8,683 | 12,260 | -29.2% | | Other gains and losses | (295) | (16,385) | +98.2% | | Administrative expenses | (365,280) | (360,896) | +1.2% | | Finance costs | (11,898) | (8,366) | +42.2% | | Profit before tax | 100,388 | 105,468 | -4.8% | | Profit for the period | 79,286 | 82,280 | -3.6% | | Total comprehensive income for the period | 95,398 | 62,581 | +52.4% | - Profit attributable to owners of the Company was **HK$80.811 million**, with loss attributable to non-controlling interests of **HK$1.525 million**[6](index=6&type=chunk) - Basic and diluted earnings per share remained flat at **6 HK cents**[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total equity increased, non-current liabilities significantly decreased, and net current assets slightly declined Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 1,493,738 | 1,500,584 | -0.5% | | Current assets | 3,764,355 | 3,699,448 | +1.8% | | Current liabilities | 2,714,581 | 2,632,556 | +3.1% | | Net current assets | 1,049,774 | 1,066,892 | -1.6% | | Total equity | 2,262,494 | 2,195,073 | +3.1% | | Non-current liabilities | 281,018 | 372,403 | -24.5% | - Bank balances and cash increased to **HK$1.1401 billion** (December 31, 2024: HK$1.0359 billion)[7](index=7&type=chunk) - Trade receivables increased to **HK$1.0227 billion** (December 31, 2024: HK$958.3 million), while contract assets decreased to **HK$1.3639 billion** (December 31, 2024: HK$1.4604 billion)[7](index=7&type=chunk) - Total bank borrowings (due within one year and after one year) decreased from **HK$574.2 million** as of December 31, 2024, to **HK$440.3 million** as of June 30, 2025[7](index=7&type=chunk)[8](index=8&type=chunk) Notes to the Condensed Consolidated Financial Statements [Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The interim financial statements are prepared under HKAS 34 and Listing Rules, applying consistent accounting policies with no significant impact from new HKFRS amendments - The condensed consolidated financial statements are prepared in accordance with **HKAS 34 Interim Financial Reporting** and the **Listing Rules**[9](index=9&type=chunk) - Accounting policies are consistent with those applied in the annual consolidated financial statements for the year ended **December 31, 2024**[10](index=10&type=chunk) - The application of amended HKFRS accounting standards, such as **HKAS 21 (Amendment) Lack of Exchangeability**, had no significant impact on the group's financial position or performance during this interim period[11](index=11&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) Group revenue decreased by 12.0% due to reduced contracting work, showing varied regional performance and a significant increase in remaining performance obligations Revenue Analysis by Product and Service | Revenue Category | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Contracting work | 2,208,154 | 2,585,340 | -14.6% | | Maintenance work | 616,872 | 614,741 | +0.3% | | Sales of goods | 49,194 | 65,302 | -24.7% | | **Total Revenue** | **2,874,220** | **3,265,383** | **-12.0%** | Revenue Analysis by Geographical Region | Region | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 2,644,186 | 2,795,938 | -5.4% | | Macau | 83,391 | 291,946 | -71.4% | | Mainland China | 68,220 | 110,284 | -38.1% | | United Kingdom | 74,496 | 63,657 | +17.0% | | United States | 356 | 37 | +862.2% | | Others | 3,571 | 3,521 | +1.4% | - As of June 30, 2025, the transaction price allocated to remaining performance obligations was **HK$13.085 billion**, an **18.4% increase** from HK$11.052 billion as of December 31, 2024, primarily from contracting and maintenance work[14](index=14&type=chunk) Total Revenue by Operating Segment | Segment | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Building Services Engineering | 1,564,933 | 2,111,348 | -25.9% | | Environmental Engineering | 717,048 | 620,588 | +15.5% | | ICBT | 303,225 | 294,570 | +2.9% | | Lifts and Escalators | 289,014 | 238,877 | +21.0% | | **Total** | **2,874,220** | **3,265,383** | **-12.0%** | Segment Profit by Operating Segment | Segment | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Building Services Engineering | 31,984 | 68,616 | -53.4% | | Environmental Engineering | 52,538 | 35,406 | +48.4% | | ICBT | 17,764 | 12,247 | +45.0% | | Lifts and Escalators | 19,797 | 17,587 | +12.6% | | **Total Segment Profit** | **122,083** | **133,856** | **-8.8%** | [Revenue by Category and Geographical

[Financial Summary](index=1&type=section&id=Financial%20Summary) Revenue slightly decreased by 0.3% to RMB 981.5 million, but the company achieved profitability, with adjusted EBITDA up 38.7% to RMB 126.7 million - **Table: Financial Summary for the Six Months Ended 30 June 2025** | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 981.5 | 984.5 | -0.3% | | Profit | 32.6 | (24.7) | Turned loss into profit | | Profit for the period attributable to owners of the Company | 41.6 | (19.5) | Turned loss into profit | | Earnings per share | 12.5 cents | (5.8 cents) | Turned positive | | Adjusted EBITDA | 126.7 | 91.3 | +38.7% | | Interim Dividend | None | None | Unchanged | [Interim Results](index=2&type=section&id=Interim%20Results) The Group's unaudited interim results for H1 2025 show a significant turnaround from loss to profit, driven by asset disposal, hemodialysis growth, and cost control [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue slightly decreased by 0.3% to RMB 981.5 million, but gross profit increased by 8.3% to RMB 158.5 million, turning a loss of RMB 24.7 million into a profit of RMB 32.6 million - **Table: Key Data from Condensed Consolidated Statement of Profit or Loss** | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 981,535 | 984,518 | -0.3 | | Cost of revenue | (823,002) | (838,119) | -1.8 | | Gross profit | 158,533 | 146,399 | +8.3 | | Other income | 22,752 | 21,154 | +7.6 | | Administrative expenses | (108,754) | (140,468) | -22.6 | | Finance costs | (8,113) | (17,061) | -52.4 | | Profit/(loss) before tax | 52,984 | (3,100) | Turned loss into profit | | Income tax expense | (20,413) | (21,557) | -5.3 | | Profit/(loss) for the period | 32,571 | (24,657) | Turned loss into profit | | Profit/(loss) for the period attributable to owners of the Company | 41,642 | (19,542) | Turned loss into profit | | Basic earnings/(loss) per share (RMB cents) | 12.5 | (5.8) | Turned positive | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group recorded a profit of RMB 32.6 million and total comprehensive income of RMB 52.7 million, significantly improving from a prior-year loss due to property revaluation gains - **Table: Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income** | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit/(loss) for the period | 32,571 | (24,657) | | Property revaluation gains (net of tax) | 20,098 | – | | Other comprehensive income for the period | 20,098 | – | | Total comprehensive income/(loss) for the period | 52,669 | (24,657) | | Total comprehensive income/(loss) for the period attributable to owners of the Company | 61,740 | (19,542) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total non-current assets were RMB 1,628.9 million, total current assets RMB 1,156.0 million, with net assets increasing to RMB 1,464.7 million, indicating a solid financial position - **Table: Key Data from Condensed Consolidated Statement of Financial Position** | Indicator | 30 June 2025 (RMB thousand) | 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 1,628,947 | 1,631,054 | | Total current assets | 1,156,008 | 1,110,481 | | Total current liabilities | 889,611 | 873,578 | | Net current assets | 266,397 | 236,903 | | Total assets less current liabilities | 1,895,344 | 1,867,957 | | Total non-current liabilities | 430,603 | 405,610 | | Net assets | 1,464,741 | 1,462,347 | | Total equity | 1,464,741 | 1,462,347 | [Notes](index=6&type=section&id=Notes) This section provides supplementary information on the interim financial statements, including preparation basis, accounting policies, significant events, and specific account changes [1. General Information and Basis of Preparation](index=6&type=section&id=1.%20General%20Information%20and%20Basis%20of%20Preparation) Guangdong Kanghua Healthcare Co., Ltd. operates hospital, rehabilitation, hemodialysis, and elderly care services in China, with interim financial data prepared in RMB under IAS 34 and HKEX Listing Rules - The Company is principally engaged in providing hospital services, rehabilitation and other medical services, hemodialysis services, and elderly care services in China[8](index=8&type=chunk) - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) [1A. Significant Events and Transactions during the Interim Period](index=6&type=section&id=1A.%20Significant%20Events%20and%20Transactions%20during%20the%20Interim%20Period) The Group disposed of a 55% equity interest in Kangxin Hospital for RMB 34.936 million, recognizing a gain of RMB 19.480 million, and now accounts for the remaining 45% as an associate - On 9 January 2025, the Company entered into a sale and purchase agreement with Beijing Bosong Health Management Co., Ltd. for the disposal of a 55% equity interest in Chongqing Kanghua Zhonglian Cardiovascular Hospital Co., Ltd. (Kangxin Hospital) for a consideration of **RMB 34.936 million**[10](index=10&type=chunk) - The disposal was completed on 8 February 2025, after which Kangxin Hospital ceased to be a subsidiary of the Company and its financial results are no longer consolidated; the Company has accounted for its remaining **45% equity interest** in Kangxin Hospital as an interest in an associate using the equity method[11](index=11&type=chunk) - The Group recognized a gain on disposal of approximately **RMB 19.480 million** and recognized its remaining 45% equity interest in Kangxin Hospital (at fair value) of **RMB 23.158 million** as an interest in an associate[11](index=11&type=chunk) [2. Principal Accounting Policies](index=7&type=section&id=2.%20Principal%20Accounting%20Policies) Interim financial data is prepared under historical cost, applying new IFRS amendments for investments in associates and investment properties for the first time [Application of New Accounting Policies for Investments in Associates and Investment Properties](index=7&type=section&id=Application%20of%20New%20Accounting%20Policies%20for%20Investments%20in%20Associates%20and%20Investment%20Properties) Investments in associates are equity-accounted, with retained interests measured at fair value upon loss of significant influence, and investment properties are fair-valued with changes in profit or loss - Investments in associates are accounted for in the consolidated financial statements using the equity method, initially recognized at cost and adjusted for the share of profit or loss and other comprehensive income[14](index=14&type=chunk) - When the Group ceases to have significant influence over an associate, the retained interest is measured at fair value, and the difference between the carrying amount of the associate and the fair value of the retained interest plus proceeds from disposal is recognized in profit or loss[17](index=17&type=chunk)[18](index=18&type=chunk) - Investment properties are measured at fair value, with gains or losses arising from changes in fair value recognized in profit or loss; when an owner-occupied property is transferred to investment property, the difference between the carrying amount and fair value is recognized in other comprehensive income[20](index=20&type=chunk) [Application of Amendments to International Financial Reporting Standards](index=8&type=section&id=Application%20of%20Amendments%20to%20International%20Financial%20Reporting%20Standards) The Group adopted IAS 21 amendments "Lack of Exchangeability" in this interim period, which had no material impact on its financial position or performance - The Group first applied the amendments to IAS 21 "Lack of Exchangeability"[21](index=21&type=chunk) - The application of these amendments did not have a significant impact on the Group's financial position and performance for the current and prior periods[

Definitions This chapter defines key terms, currencies, company entities, geographical regions, regulatory bodies, and share types to ensure clear understanding of the interim report - This section defines key terms used in the interim report, including currencies (HKD, RMB), company entities (the Bank, Board of Directors, Supervisory Board), geographical regions (China, Hong Kong), regulatory bodies (National Financial Regulatory Administration, People's Bank of China), and various share types (domestic shares, foreign shares, H-shares), ensuring clear understanding of the report content[6](index=6&type=chunk)[7](index=7&type=chunk) [Company Profile and Basic Information](index=5&type=section&id=Company%20Profile%20and%20Basic%20Information) [Company Overview](index=5&type=section&id=I%20Company%20Overview) Bank of Tianjin, listed on HKEX, reported **RMB 965.67 billion** in total assets and **RMB 8.83 billion** in operating income as of June 2025 - Bank of Tianjin was established on November 17, 1996, originating from urban credit cooperatives, and began cross-regional operations in 2007, establishing branches in Beijing, Shanghai, Hebei, Shandong, and Sichuan[8](index=8&type=chunk) Key Financial Data as of June 30, 2025 | Indicator | Amount (RMB billion) | Growth from previous year-end (%) | | :--- | :--- | :--- | | Total Assets | 965.67 | 4.3 | | Total Liabilities | 895.76 | 4.6 | | Operating Income | 8.83 | 0.8 | | Total Profit | 2.14 | 4.9 | | Net Profit | 2.01 | 1.6 | [Basic Company Information](index=5&type=section&id=II%20Basic%20Company%20Information) This section details Bank of Tianjin's legal names, representatives, contact information, and H-share listing details Bank of Tianjin Basic Information | Indicator | Content | | :--- | :--- | | Legal Chinese Name | 天津銀行股份有限公司 | | Chinese Abbreviation | 天津銀行 | | Legal English Name | Bank of Tianjin Co., Ltd. | | English Abbreviation | Bank of Tianjin | | Legal Representative | Yu Jianzhong | | Stock Listing Venue | The Stock Exchange of Hong Kong Limited | | Stock Code | 1578 | - The Bank's auditors include KPMG Huazhen LLP (Special General Partnership) for domestic audits and KPMG for international audits[13](index=13&type=chunk) [Strategic Positioning and Corporate Culture](index=8&type=section&id=Strategic%20Positioning%20and%20Corporate%20Culture) [Strategic Positioning](index=8&type=section&id=I%20Strategic%20Positioning) Bank of Tianjin aims to become a leading regional bank, guided by national policies and serving high-quality economic development - Strategic Guidance: Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implementing the spirit of the 20th CPC National Congress and the Central Financial Work Conference, and thoroughly implementing General Secretary Xi Jinping's important speeches during his inspection of Tianjin[15](index=15&type=chunk) - Development Goal: To build a modern, first-class regional bank that satisfies the municipal Party committee, reassures regulators, earns social praise, delights shareholders, and makes employees proud[15](index=15&type=chunk)[19](index=19&type=chunk) - Development Path: Strengthening the two contemporary genes of research and technology, building internal development capabilities to enhance core competitiveness, structuring external development resources to improve ecosystem services, reconstructing development mechanisms to boost value innovation efficiency, and deepening supply-side financial reform to excel in the 'Five Key Areas' of finance[16](index=16&type=chunk)[19](index=19&type=chunk) [Corporate Culture Philosophy System](index=9&type=section&id=II%20Bank%20of%20Tianjin%20Corporate%20Culture%20Philosophy%20System) Bank of Tianjin's corporate culture defines its vision, cooperation philosophy, development path, and risk management principles, emphasizing integrity and prudence - Vision: To build a modern, first-class regional bank that satisfies the municipal Party committee, reassures regulators, earns social praise, delights shareholders, and makes employees proud[19](index=19&type=chunk) - Cooperation Philosophy: Smart Tianjin Bank, Advancing Together Towards the Future[19](index=19&type=chunk) - Risk Philosophy: Upholding China's distinctive financial culture, adhering to principles of integrity, ethical profit-seeking, prudence, innovative compliance, and legal adherence, while maintaining 'five boundaries' (political, regulatory, operational, legal, capability) to prevent 'five major risks' (political, strategic, ecological, capability, operational)[19](index=19&type=chunk) [Honors, Awards, and Major Media Coverage](index=10&type=section&id=Honors%2C%20Awards%2C%20and%20Major%20Media%20Coverage) [Honors and Awards](index=10&type=section&id=I%20Honors%20and%20Awards) During the reporting period, Bank of Tianjin received multiple honors and awards, including ranking 185th in The Banker's Top 1000 World Banks 2025 - Ranked **185th** in The Banker's Top 1000 World Banks 2025[22](index=22&type=chunk) - Received financial bond underwriting awards such as the Export-Import Bank of China's 'High-Quality Belt and Road Initiative Construction Award' and Agricultural Development Bank of China's 'Rural Revitalization Pioneer'[22](index=22&type=chunk) - Awarded multiple wealth management and investment banking accolades, including the 'Jian An Qun Xing Hui Comprehensive Five-Star Award,' 'WIND Best Investment Bank,' and 'Wealth Management Income Pioneer Award'[22](index=22&type=chunk) - In FinTech innovation, received 'Excellent Case for FinTech Innovation Services' and 'China Digital Financial and Technological Innovation Application Excellent Case Award'[23](index=23&type=chunk) [Major Media Coverage](index=12&type=section&id=II%20Major%20Media%20Coverage) During the reporting period, Bank of Tianjin received extensive media coverage on its business development in inclusive finance, green finance, and FinTech - CNR reported Bank of Tianjin's 'Smart Inclusive Finance' achieved outstanding results in 2024, exceeding **RMB 20 billion**[26](index=26&type=chunk) - Xinhua Net repeatedly reported on Bank of Tianjin's initiatives in serving urban cultural heritage, deploying development 'transition,' empowering Binhai New Area's high-quality development, and deepening FinTech to enable new quality productive forces[26](index=26&type=chunk)[27](index=27&type=chunk)[32](index=32&type=chunk) - China Financial News and Tianjin Finance reported Bank of Tianjin's continuous deepening of green financial product and service innovation, strengthening financial security[30](index=30&type=chunk) - Xinhua News Agency reported Bank of Tianjin partnered with **10 entities** to establish a pension finance alliance[32](index=32&type=chunk) - CNR reported Bank of Tianjin upgraded payment services, facilitating convenient payments for the Davos Forum[33](index=33&type=chunk) [Summary of Accounting Data and Financial Indicators](index=18&type=section&id=Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators) This section summarizes Bank of Tianjin's operating results, financial position, profitability, asset quality, and capital adequacy as of June 30, 2025 Operating Results for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest Income | 15,142,643 | 15,953,844 | (5.1) | | Interest Expense | (9,219,329) | (9,922,051) | (7.1) | | Net Interest Income | 5,923,314 | 6,031,793 | (1.8) | | Investment Income | 1,266,927 | 1,498,719 | (15.5) | | Net Fee and Commission Income | 788,838 | 1,079,397 | (26.9) | | Net Trading Gains/(Losses) | 710,664 | 212,680 | 234.1 | | Operating Income | 8,828,439 | 8,756,662 | 0.8 | | Operating Expenses | (2,070,128) | (2,024,516) | 2.3 | | Impairment Losses | (4,629,974) | (4,702,872) | (1.6) | | Profit Before Tax | 2,138,770 | 2,038,561 | 4.9 | | Profit for the Period | 2,008,360 | 1,975,791 | 1.6 | | Earnings Per Share Attributable to Equity Holders of the Bank (RMB) | 0.33 | 0.32 | 3.1 | Key Asset/Liability Indicators as of June 30, 2025 (RMB thousand) | Indicator | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 965,674,631 | 925,993,655 | 4.3 | | Of which: Customer Loans and Advances | 471,033,192 | 440,779,383 | 6.9 | | Total Liabilities | 895,758,652 | 856,583,512 | 4.6 | | Of which: Customer Deposits | 533,951,884 | 500,957,014 | 6.6 | | Equity Attributable to Equity Holders of the Bank | 69,043,443 | 68,547,411 | 0.7

[Company Announcements and Key Financial Highlights](index=1&type=section&id=Company%20Announcements%20and%20Key%20Financial%20Highlights) This section provides an overview of the company's interim results and dividend policy [Interim Results Overview](index=1&type=section&id=Group%20Performance) Shun Tak Holdings Limited reported a significant reduction in loss attributable to owners for the six months ended June 30, 2025, with adjusted profit reversing previous losses Key Financial Performance H1 2025 | Metric | H1 2025 (HKD Million) | H1 2024 (HKD Million) | Change | | :--- | :--- | :--- | :--- | | Unaudited Loss Attributable to Owners of the Company | (120) | (428) | Loss narrowed | Adjusted Financial Performance H1 2025 | Metric | H1 2025 (HKD Million) | H1 2024 (HKD Million) | Change | | :--- | :--- | :--- | :--- | | Adjusted Profit/(Loss) Attributable to Owners | 270 | (108) | Turned from loss to profit | Basic Loss Per Share | Metric | H1 2025 (HK Cents) | H1 2024 (HK Cents) | Change | | :--- | :--- | :--- | :--- | | Basic Loss Per Share | (4.0) | (14.2) | Loss narrowed | [Interim Dividend](index=1&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for H1 2025, consistent with H1 2024[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 income statement, comprehensive income statement, and balance sheet [Condensed Consolidated Income Statement](index=2&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group's revenue decreased, but operating profit significantly increased due to other net gains and cost control, leading to a narrowed loss Key Data from Condensed Consolidated Income Statement | Metric | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,345,992 | 2,162,476 | Decrease 37.76% | | Other income | 170,149 | 138,038 | Increase 23.26% | | Other net gains | 271,606 | — | New | | Operating profit | 509,217 | 199,719 | Increase 154.96% | | Finance costs | (275,825) | (351,392) | Decrease 21.51% | | Loss for the period | (94,623) | (413,151) | Loss narrowed 77.12% | | Loss attributable to owners of the Company | (120,450) | (428,108) | Loss narrowed 71.83% | | Basic loss per share (HK Cents) | (4.0) | (14.2) | Loss narrowed 71.83% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group reported a significant improvement in total comprehensive income for the period, turning from a loss to a gain, driven by currency translation differences and fair value changes of equity instruments Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Loss for the period | (94,623) | (413,151) | Loss narrowed 77.12% | | Currency translation differences | 447,290 | (247,625) | Turned from loss to profit | | Share of currency translation differences of joint ventures | 134,939 | (117,436) | Turned from loss to profit | | Equity instruments at fair value through other comprehensive income: Changes in fair value | 166,746 | 43,988 | Increase 279.08% | | Other comprehensive income/(loss) for the period (net of tax) | 780,863 | (410,702) | Turned from loss to profit | | Total comprehensive income/(loss) for the period | 686,240 | (823,853) | Turned from loss to profit | | Total comprehensive income/(loss) attributable to owners of the Company | 654,676 | (832,858) | Turned from loss to profit | [Condensed Consolidated Balance Sheet](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the Group's net assets and total equity increased, with a significant rise in net current assets due to reduced current bank borrowings Key Data from Condensed Consolidated Balance Sheet | Metric | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 31,468,432 | 31,415,185 | Increase 0.17% | | Total current assets | 18,732,803 | 18,788,713 | Decrease 0.30% | | Total current liabilities | 5,092,416 | 6,889,054 | Decrease 26.08% | | Net current assets | 13,640,387 | 11,899,659 | Increase 14.63% | | Net assets | 33,178,127 | 32,732,387 | Increase 1.36% | | Total equity | 33,178,127 | 32,732,387 | Increase 1.36% | | Bank borrowings (current) | 3,858,352 | 5,617,689 | Decrease 31.32% | | Bank borrowings (non-current) | 11,211,562 | 9,817,943 | Increase 14.19% | [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section details the basis of preparation, accounting policies, and significant impacts of revised standards on the interim financial statements [Basis of Preparation and Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules, consistent with 2024 policies, with key management estimates and judgments applied - The financial statements are prepared in accordance with HKEX Listing Rules and HKAS 34, with accounting policies consistent with the 2024 annual financial statements, except for newly adopted standards[8](index=8&type=chunk) - Management applied key accounting estimates and judgments in preparing the financial statements[9](index=9&type=chunk) [Impact of Revised Standards](index=7&type=section&id=Impact%20of%20Revised%20Standards) The Group adopted certain standard amendments effective January 1, 2025, with no material impact, and is evaluating new standards like HKFRS 18, which may affect financial statement presentation - Adopted amendments to HKAS 21 and HKFRS 1 had no material impact on current period results and financial position[10](index=10&type=chunk) - The Group is assessing the impact of HKFRS 18 'Presentation and Disclosure in Financial Statements', which may affect the classification of income and expenses in the consolidated income statement, report structure, and additional disclosures[11](index=11&type=chunk) - Other unadopted standard amendments are not expected to have a material impact on the Group's results[13](index=13&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group operates in four reportable segments: Property, Hospitality and Leisure, Transportation, and Investments, with Property showing significant profit and Hospitality and Leisure narrowing losses - The Group has four reportable segments: Property, Hospitality and Leisure, Transportation, and Investments, each with distinct business and market strategies[14](index=14&type=chunk) Segment Results H1 2025 | Segment | Segment Results (HKD Thousand) | Fair Value Changes of Investment Properties (HKD Thousand) | Share of Results of Joint Ventures (HKD Thousand) | Share of Results of Associates (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Property | 597,687 | (167,964) | (220,840) | (23,182) | | Hospitality and Leisure | (53,900) | — | (10,513) | (6,286) | | Transportation | — | — | — | 21 | | Investments | 53,507 | — | — | (33,515) | | Consolidated | 597,294 | (167,964) | (231,353) | (62,962) | Segment Assets and Liabilities as of June 30, 2025 | Segment | Segment Assets (HKD Thousand) | Joint Ventures (HKD Thousand) | Associates (HKD Thousand) | Segment Liabilities (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Property | 23,361,259 | 10,008,988 | 4,492,047 | 634,014 | | Hospitality and Leisure | 4,637,915 | (234,167) | 93,563 | 209,446 | | Transportation | 225,337 | — | 388,298 | 25 | | Investments | 1,793,925 | — | 584,961 | 12,107 | | Consolidated | 30,018,436 | 9,774,821 | 5,558,869 | 855,592 | [Operating Profit and Other Net Gains](index=12&type=section&id=Operating%20Profit) Operating profit for H1 2025 significantly increased, primarily driven by net exchange gains, stable interest and dividend income, and a substantial decrease in property inventory sales costs Composition of Operating Profit | Item | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Net exchange gains | 271,606 | — | New | | Interest income from bank deposits and others | 122,865 | 116,995 | Increase 5.02% | | Rental income from investment properties | 106,805 | 109,374 | Decrease 2.35% | | Dividend income from listed investments | 5,376 | 9,253 | Decrease 41.90% | | Dividend income from unlisted investments | 62,555 | 57,996 | Increase 7.86% | | Cost of inventories sold — properties | 347,556 | 1,090,998 | Decrease 68.14% | | Net exchange (gains)/losses | (271,606) | 99,202 | Turned from loss to profit | [Finance Costs](index=13&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs decreased by 21.51%, mainly due to a reduction in interest on bank borrowings Finance Costs Details | Item | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 261,795 | 336,766 | Decrease 22.39% | | Interest on lease liabilities | 1,758 | 2,561 | Decrease 31.36% | | Other finance costs | 12,272 | 12,065 | Increase 1.72% | | Total finance costs | 275,825 | 351,392 | Decrease 21.51% | [Taxation](index=13&type=section&id=Taxation) Total taxation for H1 2025 slightly decreased, driven by a significant reduction in non-Hong Kong taxes and tax credits from deferred tax movements Taxation Details | Item | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Hong Kong Profits Tax | 5,182 | 3,894 | Increase 33.08% | | Non-Hong Kong taxation | 94,987 | 155,310 | Decrease 38.84% | | Total current period taxation | 100,169 | 159,204 | Decrease 37.08% | | Deferred taxation | (66,469) | (124,177) | Tax credit decreased | | Total taxation | 33,700 | 35,027 | Decrease 3.80% | - Hong Kong Profits Tax rate is **16.5%**, with non-Hong Kong taxation primarily from Macau (**12%**), China (**25%**), and Singapore (**17%**)[20](index=20&type=chunk) [Loss Per Share](index=14&type=section&id=Loss%20Per%20Share) Basic loss per share for the six months ended June 30, 2025, significantly narrowed to 4.0 HK cents, with no dilutive effect Loss Per Share Data | Metric | H1 2025 (HK Cents) | H1 2024 (HK Cents) | Change | | :--- | :--- | :--- | :--- | | Basic Loss Per Share | (4.0) | (14.2) | Loss narrowed 71.83% | | Diluted Loss Per Share | (4.0) | (14.2) | Loss narrowed 71.83% | - Loss per share is calculated based on a loss attributable to owners of the Company of **HKD 120,450,000** and a weighted average of **3,017,661,785** ordinary shares outstanding[22](index=22&type=chunk) [Trade and Other Receivables and Payables](index=14&type=section&id=Trade%20and%20Other%20Receivables%20and%20Payables) Trade receivables significantly decreased, while trade payables increased as of June 30, 2025, with the Group's credit period generally ranging from zero to sixty days - The Group's credit period to customers generally ranges from **zero to sixty days**, with trade receivables managed according to market requirements and credit policies[23](index=23&type=chunk) Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | 0 to 30 days | 120,073 | 491,831 | Decrease 75.59% | | 31 to 60 days | 17,085 | 18,079 | Decrease 5.50% | | 61 to 90 days | 7,162 | 6,413 | Increase 11.68% | | Over 90 days | 44,718 | 12,614 | Increase 254.51% | | Total | 189,038 | 528,937 | Decrease 64.26% | Trade Payables Ageing Analysis | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | 0 to 30 days | 210,659 | 146,115 | Increase 44.17% | | 31 to 60 days | 873 | 1,850 | Decrease 52.81% | | 61 to 90 days | 100 | 40 | Increase 150.00% | | Over 90 days | 1,098 | 1,104 | Decrease 0.54% | | Total | 212,730 | 149,109 | Increase 42.67% | [Events After the Reporting Period](index=15&type=section&id=Events%20After%20the%20Reporting%20Period) On July 28, 2025, a Group subsidiary entered into an agreement to sell office and retail units in Zhuhai for RMB 724.2 million - On July 28, 2025, Zhuhai Hengqin Shun Tak sold Zhuhai office and retail units to SJM — Investments Limited for **RMB 724.2 million**[26](index=26&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) This section provides a detailed review of the Group's performance across its Property, Hospitality and Leisure, Transportation, and Investments segments [Property](index=16&type=section&id=Property) Despite a weak macroeconomic environment, the Property segment recorded a profit of HKD 598 million in H1 2025, driven by development project revenue and net exchange gains, with strong sales in high-end residential projects and improved occupancy in commercial properties Property Segment Performance | Metric | H1 2025 (HKD Million) | H1 2024 (HKD Million) | Change | | :--- | :--- | :--- | :--- | | Profit recorded | 598 | 363 | Increase 64.74% | - Macau Nova City has sold **93%** (total **1,775 units**), and Nova Park has sold **98%** (total **620 units**)[27](index=27&type=chunk) - Singapore Park Nova has sold **94%** (total **54 residential units**), with one penthouse becoming one of the highest average selling price condominiums in Singapore's residential property market[28](index=28&type=chunk)[29](index=29&type=chunk) Shanghai Projects Occupancy Rates | Project | H1 2025 Occupancy Rate | H1 2024 Occupancy Rate | Change | | :--- | :--- | :--- | :--- | | Shanghai Qiantan 31 Retail Space | 87% | 83% | Increase 4 percentage points | | Shanghai Qiantan 31 Office | 72% | 59% | Increase 13 percentage points | | Shanghai Suhewan 'MixC World' | 95% | 91% | Increase 4 percentage points | | Shanghai Suhewan 'Suhewan Centre' Office | 69% | 55% | Increase 14 percentage points | - Macau Nova Mall occupancy rate increased to **85%** (H1 2024: **84%**), but One Central suffered from the general retail environment[30](index=30&type=chunk) [Hospitality and Leisure](index=18&type=section&id=Hospitality%20and%20Leisure) Despite global economic slowdown, the Hospitality and Leisure segment narrowed its loss by 40% year-on-year, driven by stable tourism recovery, improved hotel occupancy rates, and active cultural tourism development Hospitality and Leisure Segment Performance | Metric | H1 2025 (HKD Million) | H1 2024 (HKD Million) | Change | | :--- | :--- | :--- | :--- | | Loss recorded | (54) | (86) | Loss narrowed 40% | - The Group holds interests in **ten hotels**, and its subsidiary hotel management company, Artyzen Hospitality Group, manages **seventeen hotels and serviced apartments**[31](index=31&type=chunk) Hotel Average Occupancy Rates | Region | H1 2025 Occupancy Rate | H1 2024 Occupancy Rate | Change | | :--- | :--- | :--- | :--- | | Hong Kong SkyCity Marriott Hotel | 76.5% | 70.9% | Increase 5.6 percentage points | | Mainland China Operations | 56.7% | 46.3% | Increase 10.4 percentage points | | Macau Operations | 73.8% | 60.9% | Increase 12.9 percentage points | | Mandarin Oriental Macau | 79.3% | 63.4% | Increase 15.9 percentage points | | Artyzen Singapore | 45.7% | — | — | - Revenue from cultural and artistic performance venues at Shanghai Qiantan 31 significantly increased, solidifying its position as a cultural and commercial activity hub[33](index=33&type=chunk) - The 'Adventure Theme Zone' project at Hong Kong Ocean Park, developed in partnership with AJ Hackett International Group, has completed site handover and entered the scheme design phase, with completion expected in **2028**[33](index=33&type=chunk) [Transportation](index=19&type=section&id=Transportation) The Transportation segment achieved break-even results, focusing on building a comprehensive Greater Bay Area multi-modal transport network, including new ferry services and tourism initiatives - The Transportation segment integrates 'Tourism+' and 'Transportation+' concepts into its business strategy to strengthen its intermodal network[34](index=34&type=chunk) - In June 2025, the Group signed an MOU with Shenzhen Airport (Group) Co., Ltd. to provide ferry operation and management services connecting Shenzhen Airport Terminal to Macau and Hong Kong[34](index=34&type=chunk) - TurboJET participated in the 'Fly to Macau' promotion program for the second consecutive year and launched travel packages[35](index=35&type=chunk) - Macau Maritime Tour launched a new 'Outer Harbour — Barra' route, enhancing the visitor experience in Macau[35](index=35&type=chunk) - The segment recorded break-even results in H1 2025 (H1 2024: share of profit of **HKD 6 million**), primarily impacted by the reversal of deferred tax assets[35](index=35&type=chunk) [Investments](index=20&type=section&id=Investments) The Investments segment recorded a profit of HKD 54 million, driven by dividends from Macau gaming operations and sales growth in retail ventures, while maintaining Kai Tak Cruise Terminal's market dominance - The Group is a long-term investor in Sociedade de Turismo e Diversões de Macau, S.A., receiving **HKD 63 million** in dividends in H1 2025 (H1 2024: **HKD 58 million**)[36](index=36&type=chunk) - Kai Tak Cruise Terminal maintained its dominant market share of approximately **two-thirds** in Hong Kong and welcomed new cruise routes[36](index=36&type=chunk) - Toys 'R' Us and Stecco Natura stores under Shun Tak East West Limited both recorded sales growth during the reporting period[36](index=36&type=chunk) Investments Segment Performance | Metric | H1 2025 (HKD Million) | H1 2024 (HKD Million) | Change | | :--- | :--- | :--- | :--- | | Profit recorded | 54 | 51 | Increase 5.88% | [Developments and Outlook](index=21&type=section&id=Developments%20and%20Outlook) The Group remains optimistic about the H2 2025 tourism outlook, focusing on its "Tourism+" strategy, key project developments, and expanding its healthcare property and transportation networks - The Group anticipates an optimistic outlook for the tourism and leisure industry in H2 2025, continuing to strictly monitor costs, flexibly manage transport schedules, and enhance service quality[37](index=37&type=chunk) - The 'Tourism+' strategy is the Group's core driver, aiming to solidify its position as a leading integrated cultural tourism enterprise[37](index=37&type=chunk) - The 'Aerial Adventure Theme Zone' project at Hong Kong Ocean Park has entered its initial scheme design phase, expected to introduce world-class high-altitude adventure tourism attractions[37](index=37&type=chunk) - The Group is planning a new Artyzen hotel in Xi'an, expected to open in **Q1 2028**, in response to the 'Belt and Road' initiative[38](index=38&type=chunk) - The Group has signed an agreement to sell part of its Hengqin integrated development project (approximately **19,781 square meters** of office and retail units), with the buyer planning to convert them into three-star hotel facilities in response to Greater Bay Area hotel policies[38](index=38&type=chunk) - The Group is actively advancing its healthcare property development strategy, with the Kunming South High-Speed Rail Station integrated development project expected to open in **Q4 2025**, and most facilities at the Tianjin South High-Speed Rail Station integrated development project already operational[39](index=39&type=chunk) - Construction of the Beijing Tongzhou integrated development project is progressing as scheduled, with two office towers and one serviced apartment building expected to obtain completion records in **2026**[39](index=39&type=chunk) - The Transportation segment will continue to enhance the Greater Bay Area's sea, land, and air cross-border intermodal transport network and explore low-altitude economy development[40](index=40&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) This section provides an overview of the Group's liquidity, financial resources, capital structure, and financial risk management [Liquidity, Financial Resources and Capital Structure](index=23&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the Group's bank balances and deposits increased, with substantial unutilized banking facilities and an improved capital-to-debt ratio, indicating a robust financial position Liquidity and Capital Structure | Metric | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change | | :--- | :--- | :--- | :--- | | Bank balances and deposits | 8,479 | 7,810 | Increase 8.57% | | Total available banking facilities | 18,880 | — | — | | Unutilized banking facilities | 3,747 | — | — | | Outstanding principal amount of bank borrowings | 15,133 | — | — | | Net borrowings | 6,591 | — | — | | Capital-to-debt ratio | 21.2% | 25.1% | Decrease 3.9 percentage points | Maturity Profile of Principal Borrowings | Maturity Period | Percentage of Total | | :--- | :--- | | Within one year | 25% | | One to two years | 33% | | Two to five years | 41% | | Over five years | 1% | | Total | 100% | [Material Acquisitions, Disposals and Commitments](index=23&type=section&id=Material%20Acquisitions%2C%20Disposals%20and%20Commitments) The Group had no material acquisitions or disposals during the period but has commitments for a theme park development and unfulfilled capital commitments for a healthcare property investment - No material acquisitions or disposals occurred during the period[44](index=44&type=chunk) - The Group has unfulfilled commitments of approximately **HKD 33 million** for the development of the Adventure Theme Zone at a Hong Kong theme park[44](index=44&type=chunk) - The Group holds a **30%** interest in Perennial HC Holdings Pte. Ltd. (HC Co) and has unfulfilled capital commitments of approximately **USD 64 million** (approximately **HKD 503 million**) for its investment in China healthcare property projects[45](index=45&type=chunk) [Pledged Assets](index=24&type=section&id=Pledged%20Assets) As of the period end, the Group pledged assets with a total book value of HKD 11,423 million as collateral for bank loans, with some secured by subsidiary shares Pledged Assets Status | Metric | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change | | :--- | :--- | :--- | :--- | | Total book value of pledged assets | 11,423 | 10,983 | Increase 4.01% | | Principal amount of pledged bank loans | 4,743 | 4,976 | Decrease 4.68% | | Principal amount of bank loans secured by shares of subsidiaries | 518 | 533 | Decrease 2.81% | [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of the period end, the Group had no significant contingent liabilities, though a corporate guarantee for an associate was utilized for HKD 100 million as of December 31, 2024 - As of the period end, the Group had no significant contingent liabilities[47](index=47&type=chunk) - As of December 31, 2024, the Company's corporate guarantee for banking facilities provided to an associate was utilized for **HKD 100 million**[47](index=47&type=chunk) [Financial Risks](index=24&type=section&id=Financial%20Risks) The Group employs a prudent financial risk management policy to minimize currency and interest rate risks, with most funds at floating rates and regular foreign exchange reviews - The Group adopts a prudent policy to manage financial risks, minimizing currency and interest rate exposures[48](index=48&type=chunk) - Most funds raised are at floating interest rates, with approximately **71%** of bank deposits, cash, and bank balances denominated in HKD, MOP, and USD[48](index=48&type=chunk) - The Group will periodically review its foreign exchange position and market conditions to determine the need for hedging[48](index=48&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section covers the Group's human resources, securities transactions, corporate governance practices, and the review of financial statements [Human Resources](index=25&type=section&id=Human%20Resources) The Group employs approximately 1,700 staff, offering competitive remuneration, performance-based promotions, and fostering team spirit through activities and training - The Group employs approximately **1,700 employees** (excluding joint ventures and associates)[49](index=49&type=chunk) - The Group adopts competitive remuneration packages, with promotions and salary increments based on individual performance[49](index=49&type=chunk) - The Group organizes social activities and encourages employee participation in training programs to foster team spirit[49](index=49&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=25&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[50](index=50&type=chunk) [Corporate Governance Code](index=25&type=section&id=Corporate%20Governance%20Code) The Group complied with most Corporate Governance Code provisions, with exceptions regarding independent non-executive director tenure and the combined roles of Chairman and Chief Executive, which have been addressed or deemed appropriate - The Group complied with all provisions of the Corporate Governance Code, except for Code Provision B.2.4(b) (tenure of independent non-executive directors) and C.2.1 (separation of Chairman and Chief Executive roles)[51](index=51&type=chunk) - Although three INEDs served for over nine years, the Board believes their independent judgment was unaffected; the Company appointed new INEDs on **July 2, 2025**, to comply with the Code[52](index=52&type=chunk)[53](index=53&type=chunk) - The Board believes combining the roles of Chairman and Chief Executive by Ms. Pansy Ho is in the Company's best interest, as all major decisions are discussed by the Board and committees, with independent advice from **four INEDs**[54](index=54&type=chunk) [Review by Audit and Risk Management Committee](index=26&type=section&id=Review%20by%20Audit%20and%20Risk%20Management%20Committee) The unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, were reviewed by the Audit and Risk Management Committee and external auditors - The unaudited condensed consolidated interim financial statements have been reviewed by the Audit and Risk Management Committee[55](index=55&type=chunk) - External auditor PricewaterhouseCoopers reviewed the financial statements in accordance with Hong Kong Standard on Review Engagements 2410[55](index=55&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，概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任 何責任。 中國工商銀行股份有限公司 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED （於中華人民共和國註冊成立的股份有限公司） 股份代號：1398 美元優先股股份代號：4620 2025 中期業績公告 中國工商銀行股份有限公司（以下簡稱「本行」）董事會宣佈本行及其子公司（以下簡稱「本 集團」）截至2025年6月30日止未經審計的中期業績。本行董事會及董事會審計委員會已審閱並 確認未經審計的中期業績。 1. 公司基本情況簡介 1.1 基本情況簡介 | | 證券簡稱 | 證券代碼 | 上市交易所 | | --- | --- | --- | --- | | A股 | 工商銀行 | 601398 | 上海證券交易所 | | H股 | 工商銀行 | 1398 | 香港聯合交易所有限公司 | | 境外優先股 | ICBC 20USDPREF | 4620 | 香港聯合交易所有限 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任 何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何 責任。 中 國 農 業 銀 行 股 份 有 限 公 司 AGRICULTURAL BANK OF CHINA LIMITED 於 中 華 人 民 共 和 國 註 冊 成 立 之 股 份 有 限 公 司 ） （股份代號：1288） 截至二零二五年六月三十日止 六個月之中期業績公告 中國農業銀行股份有限公司（「本行」）欣然宣佈本行及所屬子公司（「本集團」）截至2025年 6月30日止六個月未經審計的中期業績。本業績公告列載本行截至2025年6月30日止六個 月之中期報告全文，其內容是根據適用的《香港聯合交易所有限公司證券上市規則》（「香 港上市規則」）披露要求編製。本集團編製的截至2025年6月30日止六個月的中期財務信 息已經畢馬威會計師事務所根據國際審閱準則第2410號審閱。本行董事會審計與合規管 理委員會（「審計與合規管理委員會」）已審閱此中期業績。本行2025年中期報告的印刷 版本將寄發予已表示希望收取本行 ...

Important Notice [Overview](index=2&type=section&id=Overview) The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with the financial report for the period being unaudited; the Board approved a 2025 interim profit distribution plan of RMB 1.36 per 10 shares (including tax) - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[6](index=6&type=chunk) - The semi-annual financial report is unaudited[7](index=7&type=chunk) - The Board of Directors approved the 2025 interim profit distribution plan: a cash dividend of **RMB 1.36 per 10 shares** (including tax)[7](index=7&type=chunk) Definitions [Overview](index=4&type=section&id=Overview) This section defines common terms used in the report, including the Bank, the Group, names of major subsidiaries, financial regulatory bodies, and relevant exchanges, ensuring clear understanding of the report content - Clarifies the references for "the Bank" and "the Group"[11](index=11&type=chunk) - Lists abbreviations for major subsidiaries such as Minsheng Financial Leasing, Minsheng Caixin Fund, Minsheng International, and Minsheng Wealth Management[11](index=11&type=chunk) - Defines the reporting period as from January 1, 2025, to June 30, 2025[11](index=11&type=chunk) Chapter 1 Company Profile [Company Overview](index=5&type=section&id=Company%20Overview) China Minsheng Bank, established in 1996, is China's first national joint-stock commercial bank primarily initiated by private enterprises, aiming to become a first-class commercial bank with distinct features, continuous innovation, value growth, and stable operations, with its A-shares and H-shares listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange, respectively - The Bank is China's first national joint-stock commercial bank primarily initiated by private enterprises, established in 1996[14](index=14&type=chunk) - The strategic development goal is to become a first-class commercial bank with distinct features, continuous innovation, value growth, and stable operations[15](index=15&type=chunk) - A-share stock abbreviation: Minsheng Bank, code: 600016; H-share stock abbreviation: Minsheng Bank, code: 01988[15](index=15&type=chunk) [Development Strategy and Business Overview](index=6&type=section&id=Development%20Strategy%20and%20Business%20Overview) The Bank adheres to its positioning as "the bank for private enterprises," leveraging market advantages to support the real economy, particularly establishing its brand in small and micro financial services, while also striving to be an "agile and open bank" driven by technology for ecosystem and smart banking development, and upholding the philosophy of "a service-oriented bank" by providing professional and digital services centered on customers, with business scope covering deposits, loans, settlements, bills, bonds, foreign exchange, bank cards, letters of credit, and guarantees - Adheres to the positioning as "the bank for private enterprises," fully supporting the development of the real economy, especially in small and micro financial services[16](index=16&type=chunk) - Adapts to the digital economy trend, promotes continuous innovation, and drives the development of ecosystem banking and smart banking with technology[16](index=16&type=chunk) - Business scope includes accepting public deposits, issuing loans, domestic and international settlements, bill acceptance and discounting, issuing financial bonds, trading government bonds, interbank lending, foreign exchange trading, bank card business, letter of credit services, and guarantees[17](index=17&type=chunk) Chapter 2 Summary of Accounting Data and Financial Indicators [Key Accounting Data and Financial Indicators](index=8&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) The Group's operating income for the first half of 2025 increased by 7.79% year-on-year to RMB 70.701 billion, but net profit attributable to the Bank's shareholders decreased by 4.87% year-on-year to RMB 21.380 billion; total assets slightly decreased, while total loans and advances slightly increased; non-performing loan ratio slightly increased by 0.01 percentage point to 1.48%, and provision coverage ratio increased by 3.12 percentage points to 145.06%; capital adequacy ratios all improved 2025 H1 Key Operating Performance (RMB million) | Indicator | 2025 H1 | 2024 H1 | Change (%) | | :--- | :--- | :--- | :--- | | Operating Income | 70,701 | 65,589 | 7.79 | | Net Interest Income | 49,203 | 48,582 | 1.28 | | Net Non-Interest Income | 21,498 | 17,007 | 26.41 | | Credit Impairment Losses | 26,039 | 20,551 | 26.70 | | Net Profit Attributable to Bank Shareholders | 21,380 | 22,474 | -4.87 | 2025 June 30 Key Scale Indicators (RMB million) | Indicator | 2025 June 30 | 2024 Dec 31 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 7,768,921 | 7,814,969 | -0.59 | | Total Loans and Advances | 4,469,874 | 4,450,480 | 0.44 | | Total Deposits | 4,311,002 | 4,249,095 | 1.46 | | Total Equity Attributable to Bank Shareholders | 688,544 | 642,859 | 7.11 | 2025 June 30 Key Asset Quality and Capital Adequacy Ratio Indicators (%) | Indicator | 2025 June 30 | 2024 Dec 31 | Change (percentage points) | | :--- | :--- | :--- | :--- | | Non-Performing Loan Ratio | 1.48 | 1.47 | 0.01 | | Provision Coverage Ratio | 145.06 | 141.94 | 3.12 | | Core Tier 1 Capital Adequacy Ratio | 9.50 | 9.36 | 0.14 | | Capital Adequacy Ratio | 13.25 | 12.89 | 0.36 | [Supplementary Accounting Data and Financial Indicators](index=11&type=section&id=Supplementary%20Accounting%20Data%20and%20Financial%20Indicators) The Group's liquidity ratio, liquidity coverage ratio, and net stable funding ratio all meet regulatory requirements, with the leverage ratio increasing; however, loan migration rates show a significant rise in special mention loan migration rate to 34.95%, and substantial increases in substandard and doubtful loan migration rates, indicating challenges in credit risk management 2025 June 30 Key Liquidity and Leverage Ratio Indicators (%) | Indicator | Standard Value | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | :--- | | Liquidity Ratio (RMB and foreign currency) | ≥25 | 74.46 | 82.95 | | Liquidity Coverage Ratio | ≥100 | 155.16 | 161.99 | | Net Stable Funding Ratio | ≥100 | 106.68 | 108.31 | | Leverage Ratio | ≥4.125 | 7.58 | 7.18 | 2025 June 30 Loan Migration Rate (%) | Loan Migration Rate | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Normal Loan Migration Rate | 1.69 | 1.56 | | Special Mention Loan Migration Rate | 34.95 | 28.93 | | Substandard Loan Migration Rate | 171.38 | 86.85 | | Doubtful Loan Migration Rate | 135.74 | 79.02 | - The single largest customer loan ratio is **1.56%**, and the top ten largest customer loan ratio is **8.73%**, both meeting regulatory requirements[23](index=23&type=chunk) Chapter 3 Management Discussion and Analysis [Overall Business Performance](index=12&type=section&id=Overall%20Business%20Performance) During the reporting period, the Group adhered to high-quality development, advanced strategic implementation, and maintained stable yet progressive operations, with continuous optimization of asset and liability structure, a slight decrease of 0.59% in total assets but a 0.44% increase in total loans and advances, raising their proportion of total assets; total liabilities decreased by 1.28%, while total deposits increased by 1.46%, with an increased proportion of individual deposits; operating income grew by 7.79% year-on-year, with both net interest income and net non-interest income increasing, but net profit attributable to the Bank's shareholders decreased by 4.87%; risk and internal control management systems continued to improve, asset quality remained generally stable, with the non-performing loan ratio slightly increasing by 0.01 percentage point and the provision coverage ratio increasing by 3.12 percentage points - The Group's total assets were **RMB 7,768.921 billion**, a decrease of **0.59%** from the end of the previous year; total loans and advances were **RMB 4,469.874 billion**, an increase of **0.44%** from the end of the previous year, with its proportion of total assets rising by **0.59 percentage points**[29](index=29&type=chunk) - Total liabilities were **RMB 7,066.609 billion**, a decrease of **1.28%** from the end of the previous year; total deposits were **RMB 4,311.002 billion**, an increase of **1.46%** from the end of the previous year, with individual deposits' proportion of total deposits rising by **1.40 percentage points**[29](index=29&type=chunk) 2025 H1 Operating Performance Overview (RMB billion) | Indicator | 2025 H1 | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Income | 70.701 | 7.79 | | Net Interest Income | 49.203 | 1.28 | | Net Non-Interest Income | 21.498 | 26.41 | | Net Profit Attributable to Bank Shareholders | 21.380 | -4.87 | - Non-performing loan ratio was **1.48%**, an increase of **0.01 percentage point** from the end of the previous year; provision coverage ratio was **145.06%**, an increase of **3.12 percentage points** from the end of the previous year[31](index=31&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) During the reporting period, the Group comprehensively advanced the "Five Key Initiatives" strategy, encompassing technology finance, green finance, inclusive finance, elderly care finance, and digital finance, achieving steady development in corporate banking, retail banking, treasury business, and overseas branch operations, while consolidating major equity-invested subsidiaries, all of which maintained good operating conditions [Implementing the 'Five Key Initiatives'](index=14&type=section&id=Implementing%20the%20'Five%20Key%20Initiatives') The Group prioritizes technology finance, green finance, inclusive finance, elderly care finance, and digital finance as strategic focuses, comprehensively supporting real economic development and social livelihood needs through optimizing mechanisms, enriching product systems, strengthening digital and intelligent services, and increasing credit投放, achieving positive progress in each area - Technology Finance: Served **121,900 technology-oriented enterprises** and **28,000 "specialized, refined, unique, and innovative" customers**, winning the "Golden Bull Bank Award for Supporting Sci-Tech Innovation"[32](index=32&type=chunk)[33](index=33&type=chunk) - Green Finance: Issued **RMB 10 billion** in green financial bonds, with green credit balance reaching **RMB 326.485 billion**, an increase of **9.63%** from the end of the previous year[34](index=34&type=chunk) - Inclusive Finance: Inclusive small and micro enterprise loan balance was **RMB 666.751 billion**, an increase of **RMB 4.033 billion** from the end of the previous year, serving **482,900 loan customers** with an average interest rate of **3.70%**[37](index=37&type=chunk) - Elderly Care Finance: Individual pension accounts reached **2.455 million**, an increase of **6.94%** from the end of the previous year; enterprise annuity account management business individual accounts reached **278,200**, an increase of **9.23%** from the end of the previous year[38](index=38&type=chunk) - Digital Finance: Retail online platform users reached **124.4944 million**, an increase of **3.18%**; corporate online platform users reached **4.1997 million**, an increase of **4.13%**[40](index=40&type=chunk) [Review of Major Businesses](index=18&type=section&id=Review%20of%20Major%20Businesses) The Group's corporate banking business maintained stable development, with a slight decrease in corporate deposits but a 5.96% increase in general corporate loans; retail banking business managed retail customer assets grew by 7.05%, and private banking customer numbers increased by 12.84%; treasury business custody scale grew steadily by 3.26%; among overseas branches, Hong Kong Branch's total assets grew by 11.83%, and net income grew by 22.62%; major equity-invested subsidiaries such as Minsheng Financial Leasing, Minsheng Caixin Fund, Minsheng International, and Minsheng Wealth Management all maintained steady development - Corporate Banking Business: Corporate deposit balance was **RMB 2,919.108 billion**, a decrease of **0.48%**; general corporate loan balance was **RMB 2,610.065 billion**, an increase of **5.96%**[41](index=41&type=chunk) - Retail Banking Business: Managed retail customer total assets reached **RMB 3,153.976 billion**, an increase of **7.05%**; private banking customer numbers reached **70,074**, an increase of **12.84%**[49](index=49&type=chunk) - Treasury Business: Custody scale reached **RMB 12.66 trillion**, an increase of **3.26%**[63](index=63&type=chunk) - Hong Kong Branch: Total assets were **HKD 236.933 billion**, an increase of **11.83%**; net income was **HKD 1.648 billion**, an increase of **22.62%**[66](index=66&type=chunk) - Minsheng Financial Leasing: Total assets were **RMB 176.907 billion**, operating income was **RMB 3.017 billion**[71](index=71&type=chunk) - Minsheng Wealth Management: Wealth management product scale reached **RMB 1,138.084 billion**, an increase of **12.05%**[76](index=76&type=chunk) [Industry Overview](index=34&type=section&id=Industry%20Overview) In the first half of 2025, China's economy showed an improving trend but still faced challenges such as insufficient domestic demand and low-level prices; the government intensified macro-control, implementing proactive fiscal policies and moderately loose monetary policies to support the real economy; the banking industry closely followed policy guidance, with reasonable credit growth, continuous structural optimization, marginal stabilization of net interest margin, expected improvement in asset quality, and enhanced service quality and efficiency through financial technology empowerment - China's economy is improving but faces challenges such as insufficient domestic demand and low-level prices[77](index=77&type=chunk) - The government implemented proactive fiscal policies and moderately loose monetary policies, increasing support for consumption, technological innovation, small and micro private enterprises[78](index=78&type=chunk) - The banking industry saw reasonable credit growth, optimized structure, marginally stabilized net interest margin, improved asset quality, and enhanced service through financial technology[79](index=79&type=chunk) [Analysis of Key Income Statement Items](index=35&type=section&id=Analysis%20of%20Key%20Income%20Statement%20Items) The Group's net profit attributable to the Bank's shareholders for the first half of 2025 decreased by 4.87% year-on-year to RMB 21.380 billion; operating income increased by 7.79% year-on-year, primarily driven by a significant 26.41% increase in net non-interest income, with net gains from investment securities growing by 379.13%; net interest income slightly increased by 1.28%, and net interest margin stabilized; operating expenses slightly increased by 0.32%, but credit impairment losses significantly increased by 26.70%, and income tax expenses grew by 71.84%, putting pressure on net profit 2025 H1 Income Statement Key Item Changes (RMB million) | Item | 2025 H1 | 2024 H1 | Change (%) | | :--- | :--- | :--- | :--- | | Operating Income | 70,701 | 65,589 | 7.79 | | Net Interest Income | 49,203 | 48,582 | 1.28 | | Net Non-Interest Income | 21,498 | 17,007 | 26.41 | | Credit Impairment Losses | 26,039 | 20,551 | 26.70 | | Net Profit Attributable to Bank Shareholders | 21,380 | 22,474 | -4.87 | - Net interest income growth was primarily due to stable scale growth and stabilized net interest margin[82](index=82&type=chunk) - Net non-interest income growth was primarily due to increased key intermediary business and investment income, with net gains from investment securities growing by **379.13%**[93](index=93&type=chunk)[94](index=94&type=chunk) - Credit impairment losses increased by **26.70%** year-on-year to **RMB 26.039 billion**, mainly due to increased impairment of loans and advances[97](index=97&type=chunk)[98](index=98&type=chunk) - Income tax expenses increased by **71.84%** year-on-year to **RMB 1.318 billion**, primarily due to reduced interest paid on perpetual bonds[99](index=99&type=chunk) [Analysis of Key Balance Sheet Items](index=45&type=section&id=Analysis%20of%20Key%20Balance%20Sheet%20Items) As of the end of the reporting period, the Group's total assets were RMB 7,768.921 billion, a decrease of 0.59% from the end of the previous year; total loans and advances slightly increased by 0.44%, with their proportion of total assets rising; total financial investments decreased by 2.02%; total liabilities decreased by 1.28%, while total deposits increased by 1.46%, with an increased proportion of individual deposits; issued bonds increased by 11.58%; total shareholders' equity increased by 6.97%, with total equity attributable to the Bank's shareholders increasing by 7.11% 2025 June 30 Asset Structure (RMB million) | Item | 2025 June 30 Amount | Proportion (%) | 2024 Dec 31 Amount | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Net Loans and Advances | 4,413,765 | 56.82 | 4,396,036 | 56.25 | | Net Financial Investments | 2,348,866 | 30.23 | 2,398,702 | 30.69 | | Total Assets | 7,768,921 | 100.00 | 7,814,969 | 100.00 | 2025 June 30 Liability Structure (RMB million) | Item | 2025 June 30 Amount | Proportion (%) | 2024 Dec 31 Amount | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Deposits from Customers | 4,382,087 | 62.01 | 4,332,681 | 60.52 | | Due to Banks and Other Financial Institutions and Financial Assets Sold Under Repurchase Agreements | 1,056,506 | 14.95 | 1,321,830 | 18.47 | | Debt Securities Issued | 1,049,973 | 14.86 | 941,025 | 13.15 | | Total Liabilities | 7,066,609 | 100.00 | 7,158,401 | 100.00 | - Total equity attributable to the Bank's shareholders was **RMB 688.544 billion**, an increase of **7.11%** from the end of the previous year[112](index=112&type=chunk)[113](index=113&type=chunk) - Off-balance sheet items showed an **8.58%** increase in bank acceptance bills and a **25.78%** increase in letters of credit issued[114](index=114&type=chunk) [Loan Quality Analysis](index=53&type=section&id=Loan%20Quality%20Analysis) As of the end of the reporting period, the Group's total non-performing loans were RMB 66.052 billion, an increase of 0.67% from the end of the previous year, with the non-performing loan ratio slightly increasing by 0.01 percentage point to 1.48%; corporate non-performing loan ratio decreased, while individual non-performing loan ratio increased; non-performing loans in the real estate industry decreased by RMB 5.112 billion, but those in leasing and business services, manufacturing, and wholesale and retail industries increased; non-performing loans in the Yangtze River Delta region and headquarters increased significantly; total pledged/mortgaged loans decreased, while total credit loans increased; both restructured loans and overdue loans increased; loan impairment provisions at period-end were RMB 95.816 billion, with a net provision of RMB 23.452 billion for the period 2025 June 30 Loan Five-Category Classification (RMB million) | Item | 2025 June 30 Amount | Proportion (%) | 2024 Dec 31 Amount | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Normal Loans | 4,403,822 | 98.52 | 4,384,870 | 98.53 | 0.43 | | Non-Performing Loans | 66,052 | 1.48 | 65,610 | 1.47 | 0.67 | | Total | 4,469,874 | 100.00 | 4,450,480 | 100.00 | 0.44 | - Corporate non-performing loan ratio was **1.21%**, a decrease of **0.05 percentage points** from the end of the previous year; individual non-performing loan ratio was **1.89%**, an increase of **0.09 percentage points** from the end of the previous year[117](index=117&type=chunk) - Non-performing loans in the real estate industry decreased by **RMB 5.112 billion** from the end of the previous year, while non-performing loans in leasing and business services increased by **RMB 3.916 billion**[119](index=119&type=chunk) - Total restructured loans were **RMB 27.226 billion**, an increase of **RMB 0.825 billion** from the end of the previous year; total overdue loans were **RMB 98.067 billion**, an increase of **RMB 5.108 billion** from the end of the previous year[126](index=126&type=chunk) - Loan impairment provisions at period-end were **RMB 95.816 billion**, with a net provision of **RMB 23.452 billion** for the current period[130](index=130&type=chunk) [Capital Adequacy Ratio Analysis](index=62&type=section&id=Capital%20Adequacy%20Ratio%20Analysis) As of the end of the reporting period, the Group's Core Tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio, and capital adequacy ratio were 9.50%, 11.62%, and 13.25% respectively, all meeting regulatory requirements and showing an increase from the end of the previous year; the leverage ratio was 7.58%, an increase of 0.34 percentage points from the end of March 2025 2025 June 30 Capital Adequacy Ratio Indicators (%) | Indicator | 2025 June 30 | 2024 Dec 31 | Change (percentage points) | | :--- | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 9.50 | 9.36 | 0.14 | | Tier 1 Capital Adequacy Ratio | 11.62 | 11.00 | 0.62 | | Capital Adequacy Ratio | 13.25 | 12.89 | 0.36 | - The Group's leverage ratio was **7.58%**, an increase of **0.34 percentage points** from the end of March 2025[132](index=132&type=chunk) [Liquidity Related Indicators](index=64&type=section&id=Liquidity%20Related%20Indicators) As of the end of the reporting period, the Group's liquidity coverage ratio was 155.16% and net stable funding ratio was 106.68%, both exceeding regulatory requirements, indicating sufficient liquidity reserves and stable funding sources for the Group 2025 June 30 Liquidity Coverage Ratio (%) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Liquidity Coverage Ratio | 155.16 | 161.99 | | High-Quality Liquid Assets | 1,109,676 | 1,086,316 | | Net Cash Outflow in Next 30 Days | 715,192 | 670,628 | 2025 June 30 Net Stable Funding Ratio (%) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Net Stable Funding Ratio | 106.68 | 108.31 | | Available Stable Funding | 4,533,208 | 4,558,823 | | Required Stable Funding | 4,249,188 | 4,209,212 | [Segment Reporting](index=65&type=section&id=Segment%20Reporting) The Group's business segments are divided into corporate, retail, and other businesses, while geographical segments are managed across eight major regions including headquarters, Yangtze River Delta, and Pearl River Delta; corporate business dominates in terms of total assets and profit before tax, but retail business contributes significantly to operating income; headquarters and the Yangtze River Delta region show outstanding performance in total assets and operating income 2025 H1 Business Segment Operating Performance (RMB million) | Item | Corporate Business | Retail Business | Other Businesses | Total | | :--- | :--- | :--- | :--- | :--- | | Operating Income | 35,340 | 28,565 | 6,796 | 70,701 | | Profit Before Tax | 14,560 | 6,485 | 1,749 | 22,794 | | Total Assets | 5,090,354 | 1,784,720 | 835,697 | 7,710,771 | 2025 H1 Geographical Segment Operating Performance (RMB million) | Item | Headquarters | Yangtze River Delta Region | Pearl River Delta Region | Bohai Rim Region | Northeast Region | Central Region | Western Region | Overseas and Subsidiaries | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Income | 27,677 | 11,855 | 7,555 | 6,562 | 1,231 | 5,094 | 5,816 | 4,911 | 70,701 | | Profit Before Tax | 8,931 | 5,061 | 3,079 | -2,034 | 1,411 | 1,603 | 2,374 | 2,369 | 22,794 | | Total Assets | 3,306,490 | 1,239,070 | 758,174 | 1,383,899 | 135,374 | 578,286 | 694,823 | 454,986 | 7,710,771 | [Other Financial Information](index=67&type=section&id=Other%20Financial%20Information) The Group has established a sound internal control system for fair value measurement and implemented new accounting standards such as IFRS 9; there were no significant overdue debts during the reporting period; net cash flow from operating activities was negative but the net outflow decreased year-on-year; net cash flow from investing activities turned into a net inflow, increasing by RMB 73.158 billion year-on-year; net cash flow from financing activities slightly increased year-on-year - The Bank has established the "China Minsheng Bank Management Measures for Fair Value Accounting and Valuation of Financial Instruments," implemented new accounting standards such as IFRS 9, and conducts multiple verifications and early warning monitoring for fair value measurement[140](index=140&type=chunk)[141](index=141&type=chunk) - As of the end of the reporting period, the Group had no significant overdue debts[142](index=142&type=chunk) 2025 H1 Net Cash Flow (RMB million) | Item | 2025 H1 | 2024 H1 | Change Amount | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -219,043 | -283,843 | Net outflow decreased by 64,800 | | Net Cash Flow from Investing Activities | 107,517 | 34,359 | Net inflow increased by 73,158 | | Net Cash Flow from Financing Activities | 125,190 | 125,005 | Net inflow increased by 185 | [Key Issues in Operations](index=69&type=section&id=Key%20Issues%20in%20Operations) The Group's net interest margin increased by 1 basis point year-on-year, primarily due to improved liability costs and optimized asset structure; net non-interest income grew by 26.41% year-on-year, driven by increased investment income and intermediary business; non-performing loan generation rate slightly increased, with new non-performing retail loans rising, but the Bank intensified efforts in non-performing asset recovery and disposal; real estate risk prevention received high attention, with a decrease in corporate real estate-related credit balance and a 1.53 percentage point decrease in non-performing loan ratio; in capital management, all capital adequacy ratios remained stable and met regulatory requirements - Net interest margin was **1.39%**, an increase of **1 basis point** year-on-year, primarily due to improved liability costs and optimized asset structure[145](index=145&type=chunk) - Net non-interest income was **RMB 21.498 billion**, an increase of **26.41%** year-on-year, with its proportion of operating income rising by **4.48 percentage points**, mainly driven by increased investment income and settlement and clearing fee income[146](index=146&type=chunk) - Non-performing loan generation rate was **1.51%**, an increase of **0.02 percentage points** from 2024, mainly due to increased new non-performing retail loans; accumulated recovery and disposal of non-performing assets amounted to **RMB 35.156 billion**[147](index=147&type=chunk) - Corporate real estate-related credit balance was **RMB 390.653 billion**, a decrease of **1.14%** from the end of the previous year; real estate non-performing loan ratio was **3.48%**, a decrease of **1.53 percentage points** from the end of the previous year[151](index=151&type=chunk) - Core Tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio, and capital adequacy ratio were **9.50%**, **11.62%**, and **13.25%** respectively, remaining stable overall and meeting regulatory requirements[152](index=152&type=chunk) [Risk Management](index=73&type=section&id=Risk%20Management) The Group continuously improves its comprehensive risk management system, strengthening management of credit risk, market risk, operational risk, liquidity risk, country risk, banking book interest rate risk, reputational risk, information technology risk, compliance risk, and anti-money laundering risk; through optimizing models, strengthening monitoring, improving systems, and leveraging technology, it effectively controls various risks to ensure stable business development - The Bank is dedicated to building an "upgraded" comprehensive risk management system, enhancing its support for the Bank's high-quality development, and won the "China Best Risk Data and Analytics Implementation Award"[153](index=153&type=chunk) - Credit risk management covers the entire process, strengthening technology empowerment to promote the digital and intelligent transformation of credit risk management[154](index=154&type=chunk) - The large exposure management mechanism is sound, with single non-interbank customer, group non-interbank customer, single interbank customer, and group interbank customer exposures all meeting regulatory requirements[155](index=155&type=chunk) - Liquidity risk regulatory indicators remained well within compliance, and intraday liquidity risk was safe and controllable[160](index=160&type=chunk) - Deeply practices the philosophy that "compliance operation is core competitiveness," organizing the "High-Quality Compliance Development Year" activity to continuously improve compliance management[165](index=165&type=chunk) [Outlook](index=80&type=section&id=Outlook) Looking ahead to the second half of 2025 and beyond, the Bank will focus on the overall economic transformation and upgrading, adhere to serving the real economy, comprehensively enhance customer value creation capabilities, strive to build distinctive market competitive advantages, dynamically adjust asset-liability management strategies, and continuously strengthen comprehensive risk management capabilities to achieve high-quality development - Comprehensively enhance customer value creation capabilities, providing more suitable and higher-value integrated financial solutions[167](index=167&type=chunk) - Strive to build distinctive market competitive advantages, accelerate digital transformation, and improve service efficiency and intelligent application levels[167](index=167&type=chunk) - Dynamically adjust asset-liability management strategies, increase financial services for national strategies, key areas, and weak links, and strengthen refined liability management[167](index=167&type=chunk) - Continuously strengthen comprehensive risk management capabilities, upgrade digital risk control methods, and implement precise prevention and control strategies[168](index=168&type=chunk) Chapter 4 Share Changes and Shareholder Information [Ordinary Share Information](index=81&type=section&id=Ordinary%20Share%20Information) As of the end of the reporting period, the Bank's total ordinary shares were 43,782,418,502 shares, all of which were unrestricted shares, with RMB ordinary shares accounting for 81.00% and overseas listed foreign shares accounting for 19.00%; there were no changes in the total number and structure of ordinary shares during the reporting period, nor were there any restricted shareholders 2025 June 30 Ordinary Share Changes (shares) | Item | 2025 June 30 Quantity | Proportion (%) | 2024 Dec 31 Quantity | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Unrestricted Shares | 43,782,418,502 | 100.00 | 43,782,418,502 | 100.00 | | Of which: RMB Ordinary Shares | 35,462,123,213 | 81.00 | 35,462,123,213 | 81.00 | | Overseas Listed Foreign Shares | 8,320,295,289 | 19.00 | 8,320,295,289 | 19.00 | | Total Ordinary Shares | 43,782,418,502 | 100.00 | 43,782,418,502 | 100.00 | - During the reporting period, the Bank had no shareholders with restricted shares[170](index=170&type=chunk) [Securities Issuance and Listing](index=81&type=section&id=Securities%20Issuance%20and%20Listing) During the reporting period, the Bank did not issue new ordinary shares, and there were no changes in the total number and structure of ordinary shares, nor were there any internal employee shares; information on bond issuance can be found in the notes to the financial statements - During the reporting period, the Bank did not issue new ordinary shares, and there were no changes in the total number and structure of ordinary shares[171](index=171&type=chunk) - The Bank has no internal employee shares[171](index=171&type=chunk) [Shareholder Information](index=82&type=section&id=Shareholder%20Information) As of the end of the reporting period, the Bank had a total of 299,397 ordinary shareholders; among the top ten ordinary shareholders, HKSCC Nominees Limited held the highest proportion at 18.93%; Dajia Life Insurance Co., Ltd. held a combined 17.84%, making it the largest shareholder; the Bank has no controlling shareholder or actual controller; there were no share repurchases, sales, or redemptions during the reporting period; some major shareholders' shares were pledged or frozen - As of the end of the reporting period, the Bank had a total of **299,397** ordinary shareholders[172](index=172&type=chunk) Top 10 Ordinary Shareholders (excluding shares lent through securities refinancing) | Shareholder Name | Shareholding Proportion (%) | Shares Held at Period-End (shares) | Share Type | Share Status | | :--- | :--- | :--- | :--- | :--- | | HKSCC Nominees Limited | 18.93 | 8,287,619,818 | H-shares | Unknown | | Dajia Life Insurance Co., Ltd. - Universal Product | 10.30 | 4,508,984,567 | A-shares | None | | Dajia Life Insurance Co., Ltd. - Traditional Product | 6.49 | 2,843,300,122 | A-shares | None | | Shenzhen Liye Group Co., Ltd. | 4.49 | 1,966,999,113 | A-shares | Pledged | | New Hope Liuhe Investment Co., Ltd. | 4.18 | 1,828,327,362 | A-shares | None | | Tongfang Guoxin Investment Holding Co., Ltd. | 3.59 | 1,573,675,801 | A-shares | Pledged | | Shanghai Jiantai Life Technology Co., Ltd. | 3.15 | 1,379,679,587 | A-shares | Pledged | | China P&I Club | 3.02 | 1,324,284,453 | A-shares | None | | Orient Group Co., Ltd. | 2.92 | 1,280,117,123 | A-shares | Pledged, Frozen, Marked | | Hong Kong Securities Clearing Company Limited | 2.84 | 1,241,360,874 | A-shares | None | - The Bank has no controlling shareholder or actual controller; the largest shareholder, Dajia Life Insurance Co., Ltd., holds a combined **17.84%**[181](index=181&type=chunk) - During the reporting period, the Group did not sell, repurchase, or redeem any of its securities[182](index=182&type=chunk) - As of the end of the reporting period, **118,433,618 shares** of the Bank were subject to judicial freezing, and **1,311,632,512 shares** were subject to judicial marking[194](index=194&type=chunk) [Preference Share Information](index=95&type=section&id=Preference%20Share%20Information) During the reporting period, the Bank had no preference share issuance and listing, dividend distribution, repurchase or conversion, or restoration of voting rights; as of the end of the reporting period, the number of preference shareholders was 56; the Bank accounts for its issued and outstanding domestic preference shares as other equity instruments - During the reporting period, the Bank had no preference share issuance and listing[195](index=195&type=chunk) - As of the end of the reporting period, the number of preference shareholders (or their nominees) was **56**[196](index=196&type=chunk) - During the reporting period, the Bank had no preference share dividend distribution, repurchase or conversion, or restoration of voting rights[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) - The Bank accounts for its issued and outstanding domestic preference shares as other equity instruments[201](index=201&type=chunk) Chapter 5 Corporate Governance, Environmental and Social Responsibility [Overview of Corporate Governance](index=98&type=section&id=Overview%20of%20Corporate%20Governance) During the reporting period, the Bank strictly complied with laws, regulations, and regulatory requirements, continuously strengthening the organic integration of Party leadership and corporate governance; the general meeting of shareholders approved the proposal to no longer establish a Supervisory Board, which will be abolished upon approval; the Board of Directors' operational mechanism is sound, independent directors play an important role, and the actual corporate governance situation is consistent with regulatory requirements - The Bank continuously strengthens the organic integration of Party leadership and corporate governance[203](index=203&type=chunk) - The general meeting of shareholders approved the proposal to no longer establish a Supervisory Board and to revise the Articles of Association, which will be legally abolished upon approval[203](index=203&type=chunk) - The Board of Directors operates with a sound mechanism, and independent directors play an important role in risk management assessment, internal control management, related party transactions, remuneration, and nominations[203](index=203&type=chunk) [Meetings of the Board of Directors and its Special Committees](index=98&type=section&id=Meetings%20of%20the%20Board%20of%20Directors%20and%20its%20Special%20Committees) During the reporting period, the Bank's Board of Directors held 6 meetings, deliberating 58 proposals and reviewing 54 special reports; the six special committees under the Board held 25 meetings, deliberating 79 proposals and reviewing 50 special reports, ensuring the effective operation of corporate governance - During the reporting period, the Bank's Board of Directors held **6** meetings, deliberating **58** proposals and reviewing **54** special work reports[204](index=204&type=chunk) - The six special committees under the Board, including the Strategy and Development and Consumer Rights Protection Committee, held **25** meetings, deliberating **79** proposals and reviewing **50** special work reports[204](index=204&type=chunk) [Meetings of the Supervisory Board and its Special Committees](index=98&type=section&id=Meetings%20of%20the%20Supervisory%20Board%20and%20its%20Special%20Committees) During the reporting period, the Bank's Supervisory Board held 4 meetings, deliberating 20 proposals and reviewing 67 reports; the Supervisory Board's special committees held 2 meetings, deliberating and reviewing 7 matters, effectively fulfilling their supervisory duties - During the reporting period, the Bank's Supervisory Board held **4** meetings, deliberating **20** proposals and reviewing **67** reports[205](index=205&type=chunk) - The Supervisory Board's special committees held **2** meetings, deliberating and reviewing **7** matters[205](index=205&type=chunk) [Information on Directors, Supervisors, and Senior Management](index=99&type=section&id=Information%20on%20Directors,%20Supervisors,%20and%20Senior%20Management) The Bank's list of directors, supervisors, and senior management and their shareholdings remained stable, with appointments and departures of directors and senior management during the reporting period, and changes in some directors' and supervisors' information; under Hong Kong regulations, some directors held interests in securities of associated corporations; the Bank has adopted a code of conduct for securities transactions, and no violations were found during the reporting period; the Bank and relevant personnel were not subject to significant administrative penalties - Mr. Gao Yingxin serves as Chairman and Executive Director, and Mr. Wang Xiaoyong serves as President, Vice Chairman, and Executive Director[99](index=99&type=chunk) - During the reporting period, Mr. Liang Xinjie and Mr. Lin Li's qualifications as directors were approved by the National Financial Regulatory Administration, and Mr. Zhang Hongwei resigned from his positions including Vice Chairman[208](index=208&type=chunk) - Mr. Shi Jie resigned as Vice President due to retirement, and Mr. Li Wenshi was appointed as Vice President[209](index=209&type=chunk) - The Bank has adopted a code of conduct for securities transactions for directors and supervisors that is no less stringent than Appendix C3 "Model Code" of the Hong Kong Listing Rules, and no violations were found during the reporting period[219](index=219&type=chunk) - During the reporting period, the Bank, its directors, supervisors, senior management, and controlling shareholders were not under investigation for suspected crimes or subject to significant administrative penalties[220](index=220&type=chunk) [Employee Information](index=106&type=section&id=Employee%20Information) As of the end of the reporting period, the Group had 62,044 employees, of whom 59,279 were Bank employees; among Bank employees, males accounted for 43.0% and females for 57.0%; those with postgraduate degrees or above accounted for 22.4%, and those with bachelor's degrees accounted for 73.8%; the Bank's human resources and remuneration policies are value-oriented, establishing a position-based remuneration management system, and implementing deferred payment and clawback mechanisms for performance-based remuneration for senior management and key personnel; the training system covers professional and management series employees, aiding in capability enhancement and strategic implementation - As of the end of the reporting period, the Group had **62,044** employees, of whom **59,279** were Bank employees[221](index=221&type=chunk) - Among Bank employees, males accounted for **43.0%** and females for **57.0%**; those with postgraduate degrees or above accounted for **22.4%**, and those with bachelor's degrees accounted for **73.8%**[221](index=221&type=chunk) - The Bank's remuneration management system follows the principles of "setting positions based on needs, determining pay based on positions, adjusting pay with position changes, and rewarding based on performance," and has established deferred payment and clawback mechanisms for performance-based remuneration[222](index=222&type=chunk) - Training content focuses on strategic culture promotion, risk and compliance training, professional knowledge and skill enhancement, and management and leadership development, building a layered and categorized training system[224](index=224&type=chunk) [Departmental Structure](index=107&type=section&id=Departmental%20Structure) The Bank's departmental structure encompasses customer segment departments, product and support departments, risk management departments, back-office support departments, and Board/Supervisory Board institutions, forming a clear organizational framework to support the conduct of various businesses and effective risk management - The Bank's departmental structure includes customer segment departments (e.g., Corporate Banking Department, Personal Finance Department), product and support departments (e.g., Financial Markets Department, Credit Card Center), risk management departments (e.g., Risk Management Department, Legal and Compliance Department), back-office support departments (e.g., Human Resources Department, Information Technology Department), and Board/Supervisory Board institutions[226](index=226&type=chunk) [Organizational Structure of the Bank](index=108&type=section&id=Organizational%20Structure%20of%20the%20Bank) As of the end of the reporting period, the Bank had established 41 domestic first-tier branches, 2 overseas first-tier branches, and 105 second-tier branches (including off-site sub-branches), totaling 148 branch-level institutions; additionally, it had 2,416 sub-branch outlets, covering 139 cities in mainland China, with a total of 59,279 employees - As of the end of the reporting period, the Bank had established **41** domestic first-tier branches, **2** overseas first-tier branches, and **105** second-tier branches (including off-site sub-branches), with a total of **148** branch-level institutions[227](index=227&type=chunk) - The Bank's sales network covers **139** cities in mainland China, including **2,416** sub-branch outlets[57](index=57&type=chunk) - As of the end of the reporting period, the Bank had a total of **59,279** employees[235](index=235&type=chunk) [Internal Control and Internal Audit](index=111&type=section&id=Internal%20Control%20and%20Internal%20Audit) The Bank has established a sound corporate governance structure and internal control management system, regularly evaluating the effectiveness of internal controls in accordance with relevant laws and regulations, effectively promoting the improvement of the internal control system; internal audit is managed vertically by the headquarters, reporting independently to the Board of Directors and its Audit Committee, with an audit scope covering all business and management activities, continuously enhancing audit supervision quality and efficiency through a combination of conventional and digital auditing - The Bank has established a sound corporate governance structure and internal control management system, annually assessing the effectiveness of internal controls[236](index=236&type=chunk) - Internal audit is managed vertically by the headquarters, reporting independently to the Board of Directors and its Audit Committee, with an audit scope covering all business and management activities[238](index=238&type=chunk) - Internal audit work combines conventional and digital auditing, is risk-oriented, continuously strengthens research-based auditing, and enhances the quality and effectiveness of audit supervision[239](index=239&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the Reporting Period](index=113&type=section&id=Implementation%20of%20Equity%20Incentive%20Plans,%20Employee%20Stock%20Ownership%20Plans,%20or%20Other%20Employee%20Incentive%20Measures%20During%20the%20Reporting%20Period) As of now, the Bank has not implemented any equity incentive plans, employee stock ownership plans, or other employee incentive measures - As of now, the Bank has not implemented any equity incentive plans, employee stock ownership plans, or other employee incentive measures[240](index=240&type=chunk) [Compliance with Appendix C1 'Corporate Governance Code' of the Hong Kong Listing Rules](index=113&type=section&id=Compliance%20with%20Appendix%20C1%20'Corporate%20Governance%20Code'%20of%20the%20Hong%20Kong%20Listing%20Rules) During the reporting period, the Bank fully complied with the code provisions contained in Appendix C1 "Corporate Governance Code" of the Hong Kong Listing Rules and met most of the recommended best practices - During the reporting period, the Bank fully complied with the code provisions contained in Appendix C1 "Corporate Governance Code" of the Hong Kong Listing Rules, and also met most of the recommended best practices listed therein[241](index=241&type=chunk) [Environmental and Social Responsibility](index=113&type=section&id=Environmental%20and%20Social%20Responsibility) The Bank adheres to green development, actively deploys green finance, and strictly complies with environmental laws and regulations, receiving no administrative penalties for environmental issues during the reporting period; in terms of social responsibility, the Bank continues to promote financial services for rural revitalization, having raised a cumulative RMB 30 million in gratuitous assistance funds and invested RMB 72.9718 million in compensated assistance funds; concurrently, it actively carries out charitable and cultural public welfare activities and highly values ESG management improvement, achieving the highest global AAA rating in MSCI ESG - The Bank adheres to green development, actively deploys green finance, and strictly complies with environmental laws and regulations, receiving no administrative penalties for environmental issues during the reporting period[242](index=242&type=chunk) - The Bank has continuously provided targeted assistance to Huaxian and Fengqiu counties in Henan for **23 years**, raising **RMB 30 million** in gratuitous assistance funds and investing **RMB 72.9718 million** in compensated assistance funds for designated poverty alleviation counties[243](index=243&type=chunk) - Actively carries out charitable public welfare activities, hosting the **10th "ME Public Welfare Innovation Funding Program"**, supporting **29** public welfare projects[244](index=244&type=chunk) - The Bank's MSCI ESG rating is the highest global **AAA** level[246](index=246&type=chunk) [Assessment of Progress in Quality Improvement, Efficiency Enhancement, and Return on Investment](index=115&type=section&id=Assessment%20of%20Progress%20in%20Quality%20Improvement,%20Efficiency%20Enhancement,%20and%20Return%20on%20Investment) The Bank actively responded to the "Quality Improvement, Efficiency Enhancement, and Return on Investment" special action, adhering to strategic guidance, building a value bank, solidifying its customer base, enhancing refined management and innovation empowerment; concurrently, it strengthened its risk control system, improved asset quality, prevented risks in key areas, and emphasized investor returns, maintaining a stable dividend policy; the Bank also optimized corporate governance, strengthened investor communication and information disclosure, and encouraged major shareholders to make long-term investments and voluntary share increases to enhance the Bank's investment value - The Bank adheres to the strategic positioning of "the bank for private enterprises, an agile and open bank, and a service-oriented bank," with "strengthening customer base, optimizing structure, controlling risks, and promoting revenue growth" as its main work priorities[248](index=248&type=chunk) - As of the end of the reporting period, the number of core customers driven by strategic clients increased by **558**, retail customer numbers increased by **3.89%**, and private banking customer numbers increased by **12.84%**[248](index=248&type=chunk) - The Bank continuously upgrades its AI and large model infrastructure capabilities, strengthening AI applications in customer service, risk prevention, and other areas[250](index=250&type=chunk) - The Bank has established deferred payment and clawback mechanisms for performance-based remuneration for senior management, key positions, and positions with significant impact on risk[222](index=222&type=chunk) - Since 2018, the proportion of cash dividends to net profit attributable to ordinary shareholders has consistently remained above **30%**, with interim dividends added in 2024[254](index=254&type=chunk) - During the reporting period, the Bank organized and participated in **97** investor relations activities, covering nearly **500** investment institutions, doubling the frequency of communication compared to the same period last year[257](index=257&type=chunk) Chapter 6 Significant Matters [Significant Litigation and Arbitration Matters](index=120&type=section&id=Significant%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the Bank had no litigation or arbitration matters that had a significant impact on its operations; as of June 30, 2025, the Bank was a defendant or respondent in 252 pending lawsuits and arbitrations, involving approximately RMB 5.853 billion, but these are not expected to have a significant adverse impact; some lawsuits related to Wuhan Center Tower and Oceanwide Holdings have obtained effective judgments and entered enforcement - During the reporting period, no litigation or arbitration matters had a significant impact on the Bank's operations[262](index=262&type=chunk) - As of June 30, 2025, the Bank was a defendant or respondent in **252** pending lawsuits and arbitrations, involving approximately **RMB 5.853 billion**[262](index=262&type=chunk) - The Bank's lawsuits with Wuhan Center Tower Development Investment Co., Ltd. and Wuhan Central Business District Co., Ltd. have entered enforcement; **7** lawsuits with Oceanwide Holdings Co., Ltd. and China Oceanwide Holdings Group Co., Ltd. have obtained effective judgments (Bank won) and entered enforcement[262](index=262&type=chunk) [Acquisition and Disposal of Assets, and Merger Matters](index=120&type=section&id=Acquisition%20and%20Disposal%20of%20Assets,%20and%20Merger%20Matters) During the reporting period, the Bank had no significant asset acquisitions, disposals, or merger matters - During the reporting period, the Bank had no significant asset acquisitions, disposals, or merger matters[263](index=263&type=chunk) [Significant Contracts and Their Performance](index=120&type=section&id=Significant%20Contracts%20and%20Their%20Performance) The Bank's Z4 plot project in the Beijing Central Business District (CBD) core area of Chaoyang District, Beijing, which it participated in and won the bid for, is currently undergoing mechanical, electrical, and interior decoration works; the project on the south side of Aofeng Road, Taijiang District, Fuzhou, has been completed and accepted, and the branch has relocated; the Beijing Shunyi Headquarters Base Phase II Cloud Computing Data Center project has completed acceptance - The Z4 plot project in the Beijing Central Business District (CBD) core area of Chaoyang District, Beijing, is currently undergoing mechanical, electrical, and interior decoration works[264](index=264&type=chunk) - The project on the south side of Aofeng Road, Taijiang District, Fuzhou, has been completed and accepted by government departments, and the branch has relocated[264](index=264&type=chunk) - The Beijing Shunyi Headquarters Base Phase II Cloud Computing Data Center project has completed acceptance[265](index=265&type=chunk) [Significant Guarantees](index=120&type=section&id=Significant%20Guarantees) During the reporting period, other than financial guarantee businesses within the scope approved by regulatory authorities, the Bank had no other significant guarantee matters requiring disclosure, and there were no instances of entering into guarantee contracts in violation of laws, administrative regulations, and the China Securities Regulatory Commission's regulations on external guarantee approval procedures - During the reporting period, other than financial guarantee businesses within the scope approved by regulatory authorities, the Bank had no other significant guarantee matters requiring disclosure[266](index=266&type=chunk) - There were no instances of entering into guarantee contracts in violation of laws, administrative regulations, and the China Securities Regulatory Commission's regulations on external guarantee approval procedures[266](index=266&type=chunk) [Commitments of the Bank and Related Parties](index=121&type=section&id=Commitments%20of%20the%20Bank%20and%20Related%20Parties) The Bank and its directors and senior management have formulated and committed to measures to mitigate the dilution of immediate returns caused by the non-public issuance of preference shares; during the reporting period, the Bank and relevant personnel did not violate the aforementioned commitments - The Bank has formulated measures to mitigate the dilution of immediate returns caused by the non-public issuance of preference shares, including strengthening capital management, optimizing business models, and enhancing risk management capabilities[267](index=267&type=chunk) - The Bank's directors and senior management have also made corresponding commitments regarding the effective implementation of measures to mitigate immediate return dilution[267](index=267&type=chunk) - During the reporting period, the Bank and its directors and senior management did not violate the aforementioned commitments[267](index=267&type=chunk) [Appointment of Accounting Firms](index=121&type=section&id=Appointment%20of%20Accounting%20Firms) The Bank appointed KPMG Huazhen LLP (Special General Partnership) as its domestic accounting firm for 2025 and KPMG as its international accounting firm for 2025; the total audit service fee for the year is RMB 9.81 million, and non-audit service fees are RMB 1.093 million; KPMG confirmed that non-audit services would not impair its audit independence - The Bank appointed KPMG Huazhen LLP (Special General Partnership) as its domestic accounting firm for 2025 and KPMG as its international accounting firm for 2025[268](index=268&type=chunk) - The total audit service fee for the year is **RMB 9.81 million**, including **RMB 1 million** for internal control effectiveness audit[268](index=268&type=chunk) - Non-audit service fees paid to KPMG and its member firms in the first half of the year totaled **RMB 1.093 million**, and KPMG confirmed that such non-audit services would not impair its audit independence[268](index=268&type=chunk) [Significant Related Party Transactions](index=121&type=section&id=Significant%20Related%20Party%20Transactions) The Bank has no controlling shareholder; information on related party transactions under relevant accounting standards at the end of the reporting period can be found in Note 9 to the financial statements - The Bank has no controlling shareholder[269](index=269&type=chunk) - Information on related party transactions under relevant accounting standards at the end of the reporting period can be found in Note 9 to the financial statements[269](index=269&type=chunk) [Profit Distribution](index=122&type=section&id=Profit%20Distribution) The Bank has completed its 2024 annual profit distribution, with a cash dividend of RMB 0.062 per share (including tax), totaling RMB 2.714 billion; together with the interim dividend, the total cash dividend for 2024 was RMB 0.192 per share (including tax), totaling RMB 8.406 billion; the Board of Directors approved the 2025 interim profit distribution plan, proposing a cash dividend of RMB 1.36 per 10 shares (including tax), totaling approximately RMB 5.954 billion, representing about 29.95% of the net profit attributable to ordinary shareholders for the current period - 2024 annual profit distribution: a cash dividend of **RMB 0.062 per share** (including tax), totaling **RMB 2.714 billion**[270](index=270&type=chunk) - Total cash dividend for 2024 was **RMB 8.406 billion**, or **RMB 0.192 per share** (including tax)[270](index=270&type=chunk) - 2025 interim profit distribution plan: proposes a cash dividend of **RMB 1.36 per 10 shares** (including tax) to all shareholders[271](index=271&type=chunk) - The total interim cash dividend for 2025 is approximately **RMB 5.954 billion**, representing approximately **29.95%** of the net profit attributable to the Bank's ordinary shareholders for the current period on a Group basis[271](index=271&type=chunk) [Review of Interim Results](index=123&type=section&id=Review%20of%20Interim%20Results) KPMG has reviewed the Bank's interim financial report prepared in accordance with International Financial Reporting Standards and Hong Kong Listing Rules disclosure requirements; the Bank's Board Audit Committee has reviewed and approved the submission of this report to the Board for deliberation, and the Board approved it on August 29, 2025 - KPMG has reviewed the Bank's interim financial report[272](index=272&type=chunk) - The Bank's Board Audit Committee has reviewed and approved the submission of this report to the Board for deliberation[272](index=272&type=chunk) - The Board of Directors approved this report on **August 29, 2025**[272](index=272&type=chunk) [Integrity of the Bank, Controlling Shareholder, and Actual Controller](index=123&type=section&id=Integrity%20of%20the%20Bank,%20Controlling%20Shareholder,%20and%20Actual%20Controller) The Bank has no controlling shareholder or actual controller, with Dajia Life Insurance Co., Ltd. being the largest shareholder; during the reporting period, the Bank, its largest shareholder, and its ultimate controller did not fail to fulfill obligations determined by effective court legal documents or have large amounts of matured debts unpaid - The Bank has no controlling shareholder or actual controller; the largest shareholder is Dajia Life Insurance Co., Ltd[273](index=273&type=chunk) - During the reporting period, the Bank, its largest shareholder, and its ultimate controller did not fail to fulfill obligations determined by effective court legal documents or have large amounts of matured debts unpaid[273](index=273&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties](index=123&type=section&id=Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) The Bank has no controlling shareholder, with Dajia Life Insurance Co., Ltd. being the largest shareholder; there was no non-operating occupation of funds by the largest shareholder, its ultimate controller, or other related parties - The Bank has no controlling shareholder; the largest shareholder is Dajia Life Insurance Co., Ltd[274](index=274&type=chunk) - There was no non-operating occupation of funds by the largest shareholder, its ultimate controller, or other related parties[274](index=274&type=chunk) [Pre-emptive Rights](index=123&type=section&id=Pre-emptive%20Rights) The "Company Law of the People's Republic of China" and the "Articles of Association" do not stipulate pre-emptive rights, thus not requiring the Bank to offer new shares to existing shareholders in proportion to their shareholdings; the Bank may increase its registered capital through various means, but the "Articles of Association" do not contain mandatory provisions regarding shareholders' pre-emptive rights - The "Company Law of the People's Republic of China" and the "Articles of Association" do not stipulate pre-emptive rights, thus not requiring the Bank to offer new shares to existing shareholders in proportion to their shareholdings[275](index=275&type=chunk) - The Bank may increase its registered capital through various means, such as issuing ordinary shares to unspecified investors or allotting ordinary shares to existing shareholders[275](index=275&type=chunk) [Consumer Rights Protection Work](index=124&type=section&id=Consumer%20Rights%20Protection%20Work) During the reporting period, the Bank continuously and comprehensively implemented consumer rights protection work through five measures: improving the management system, perfecting operational mechanisms, focusing on key areas, practicing the "Fengqiao Experience," and strengthening education and publicity, continuously optimizing products and services, comprehensively enhancing customer experience, and addressing consumer demands to improve the quality and effectiveness of root cause analysis and rectification - The Bank comprehensively enhances customer experience through five measures: improving the management system, perfecting operational mechanisms, focusing on key areas, practicing the "Fengqiao Experience," and strengthening education and publicity[276](index=276&type=chunk) - Continuously improves the consumer protection governance system, strengthens the vertically and horizontally integrated consumer protection coordination mechanism, and enhances the consistency and effectiveness of consumer protection management[276](index=276&type=chunk) - Deeply practices the "Fengqiao Experience" in the new era, continuously improving work mechanisms such as classified complaint management and escalated handling of repeated complaints, enhancing the quality and effectiveness of root cause analysis and rectification[276](index=276&type=chunk) [Other Significant Matters](index=124&type=section&id=Other%20Significant%20Matters) During the reporting period, the Bank had no other significant matters requiring disclosure - During the reporting period, the Bank had no other significant matters[277](index=277&type=chunk) Financial Report [Review Report on Interim Financial Information](index=125&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) KPMG has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025, in accordance with International Standard on Review Engagements 2410; the review concluded that nothing came to their attention that caused them to believe the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 - KPMG has reviewed the Group's interim financial information[280](index=280&type=chunk) - The review was conducted in accordance with International Standard on Review Engagements 2410[281](index=281&type=chunk) - The review concluded that nothing came to their attention that caused them to believe the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[282](index=282&type=chunk) [Condensed Consolidated Financial Statements](index=127&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section provides the Group's condensed consolidated income statement, statement of comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows for the six months ended