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Financial Performance - For the six months ended June 30, 2025, the company reported revenue of HKD 18,984,000, a decrease of 0.6% compared to HKD 19,099,000 for the same period in 2024[3] - The gross profit for the same period was HKD 5,551,000, down 21% from HKD 7,027,000 in 2024[3] - The operating loss for the six months was HKD 16,220,000, compared to an operating profit of HKD 7,710,000 in the previous year[3] - The company reported a loss before tax of HKD 27,457,000, significantly higher than the loss of HKD 6,470,000 in 2024[3] - The total comprehensive loss for the period was HKD 35,847,000, compared to HKD 9,321,000 in the same period last year[3] - The basic loss per share was HKD 7.56, compared to HKD 2.78 in the previous year[5] - The group recorded a total loss before tax of HKD 27,457,000 for the six months ended June 30, 2025, compared to a profit of HKD 642,000 in the same period of 2024[16] - The loss attributable to shareholders increased to approximately HKD 27,457,000, compared to HKD 6,470,000 for the same period in 2024, driven by exchange losses from RMB appreciation and increased management costs in the new energy management segment[38] Revenue Breakdown - The wastewater treatment segment generated revenue of HKD 17,848,000, down from HKD 19,099,000, with a loss of HKD 4,024,000 compared to a loss of HKD 3,113,000 in the previous year[15] - The energy management segment reported revenue of HKD 1,136,000, with a loss of HKD 5,089,000, while the healthcare segment incurred a loss of HKD 5,646,000[15] - The group achieved over HKD 1,100,000 in energy management revenue during the first half of 2025, indicating a positive trend in business development[41] Assets and Liabilities - Non-current assets as of June 30, 2025, totaled HKD 2,565,000, a slight decrease from HKD 2,685,000 at the end of 2024[6] - Current assets decreased to HKD 29,359,000 from HKD 34,542,000 in December 2024[6] - Current liabilities increased to HKD 477,526,000 from HKD 451,256,000 at the end of 2024[6] - The total assets of the group were approximately HKD 31,924,000 as of June 30, 2025, down from HKD 37,227,000 as of December 31, 2024[43] - The group's total debt amounted to approximately HKD 165,142,000 as of June 30, 2025, compared to HKD 161,666,000 as of December 31, 2024[44] - The leverage ratio (total debt to total assets) increased to 517.30% as of June 30, 2025, compared to 434.27% as of December 31, 2024[43] Share Capital and Options - The company has a total of 342,698,000 ordinary shares issued and fully paid as of December 31, 2024, with a par value of HKD 0.50 per share[35] - The company has a share option plan in place, effective from September 10, 2010, which is designed to reward eligible participants, including directors and employees[36] - As of June 30, 2025, there are 10,808,000 share options that remain unexercised under the share option plan[37] - The total number of unexercised share options as of June 30, 2025, is 10,808,000, with no options exercised or lapsed during the reporting period[54] Corporate Governance - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2025[60] - The board is responsible for maintaining adequate internal control systems to safeguard shareholder investments and company assets[61] - An internal audit department was established in 2019 to report on any discrepancies and risk management measures to the audit committee[62] - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and practices adopted by the group[64] Future Outlook - The company is optimistic about business development in the second half of the year, focusing on core competitiveness and opportunities in equipment renewal and new power system construction[42] - The group has completed key projects in major cities such as Shanghai and Shenzhen, and has initiated the construction of its first fully buried new-type wastewater treatment facility[40]

2025 #期報告 兖矿能源集团股份有限公司 YANKUANG ENERGY GROUP COMPANY LIMITED ( 在中華人民共和國註册成立的股份有限公司 ) 股份代號：01171 重要提示 本公司董事會及董事、高級管理人員保證中期報告內容的真實性、準確性、完整性，不存在虛假記載、誤導性陳述或重大 遺漏，並承擔個別和連帶的法律責任。 本公司2025年中期報告已經公司第九屆董事會第十八次會議審議通過，會議應出席董事11人，實出席董事11人，公司全 體董事出席董事會會議。 本公司2025年中期報告未經審計。 本公司2025年中期報告已經公司董事會審計委員會審核。 公司董事長李偉先生、財務總監趙治國先生及財務管理部部長郭慧先生聲明：保證中期報告中財務報告的真實、準確、完 整。 公司董事會建議以分紅派息股權登記日的股份數為基數，每10股派發半年度現金股利1.80元（含稅）。 本半年度報告中有關未來計劃等前瞻性陳述，不構成本公司對投資者的實質性承諾，請投資者注意投資風險。 本公司不存在被控股股東及其他關聯方非經營性佔用資金情況。 本公司不存在違反規定決策程序對外提供擔保的情況。 本公司不存在半數以上董事無法保 ...

[Company Profile](index=3&type=section&id=Company%20Profile) TTI is a global leader in cordless technology, offering power tools, outdoor equipment, and floor care products for diverse markets - Techtronic Industries, founded in 1985 by Horst Julius Pudwill, is a global leader in cordless technology, offering power tools, outdoor power equipment, and floor care and cleaning products[5](index=5&type=chunk) - The company employs over **47,000 people globally**, solidifying its industry leadership through innovation and strategic growth[5](index=5&type=chunk) - Key brands include MILWAUKEE (professional tools) and RYOBI (DIY tools), alongside AEG, EMPIRE, HOMELITE, HOOVER, ORECK, VAX, and DIRT DEVIL[5](index=5&type=chunk) - The Pudwill family is the largest shareholder, with remaining equity primarily held by North American and European institutional investors; the company is listed on the Hong Kong Stock Exchange and is a Hang Seng Index constituent[6](index=6&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) TTI's H1 2025 revenue grew 7.1% to $7.833 billion, with gross margin at 40.3% and profit up 14.2% H1 2025 Key Financial Data | Metric | 2025 (Million USD) | 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 7,833 | 7,312 | +7.1% | | Gross Margin | 40.3% | 39.9% | +34 bps | | EBIT | 709 | 626 | +13.3% | | Profit Attributable to Shareholders | 628 | 550 | +14.2% | | Basic EPS (US cents) | 34.37 | 30.12 | +14.1% | | Interim Dividend Per Share (approx. US cents) | 16.09 | 13.90 | +15.7% | - Free cash flow reached **$468 million**, improving the company's financial position to a net cash status[17](index=17&type=chunk) - Business sales grew **11.9%** for MILWAUKEE and **8.7%** for RYOBI in local currency terms[18](index=18&type=chunk)[23](index=23&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section details H1 2025 business performance, financial condition, and outlook, emphasizing sales growth, profitability, and strategic investments [Business Review](index=7&type=section&id=Business%20Review) TTI's H1 2025 sales reached $7.8 billion, driven by MILWAUKEE and RYOBI, with improved gross margin and positive free cash flow - H1 2025 sales reached **$7.8 billion**, growing **7.5%** in local currency and **7.1%** in reported currency[23](index=23&type=chunk) - MILWAUKEE's business grew **11.9%** and RYOBI's business grew **8.7%** in local currency terms[23](index=23&type=chunk) - Gross margin increased by **34 basis points to 40.3%**, while selling and administrative expenses as a percentage of sales decreased by **18 basis points to 31.3%**[23](index=23&type=chunk) - EBIT grew **13.3% to $709 million**, net profit increased **14.2% to $628 million**, and EPS grew **14.1% to 34.37 US cents**[24](index=24&type=chunk) - Working capital as a percentage of sales improved by **190 basis points to 16.8%**, and inventory days shortened by **1 day to 103 days**[24](index=24&type=chunk) - The company recorded **$468 million** in positive free cash flow, achieving a net cash position at period-end[25](index=25&type=chunk) [Business Segments Overview](index=7&type=section&id=Business%20Segments%20Overview) This section highlights Power Tools and Floor Care segments, noting strong power tool growth and a strategic shift in floor care [Power Tools](index=7&type=section&id=Power%20Tools) Power Tools sales grew 8.3% in local currency to $7.4 billion, comprising 94.8% of total revenue - Power Tools business sales grew **8.3%** in local currency to **$7.4 billion**[26](index=26&type=chunk) - The Power Tools business accounted for **94.8% of total revenue**, reaching **$7.425 billion**[20](index=20&type=chunk) [MILWAUKEE](index=7&type=section&id=MILWAUKEE) MILWAUKEE achieved 11.9% sales growth in H1 2025, driven by user-focused strategies, new vertical expansion, and global market penetration - MILWAUKEE business grew **11.9%** in local currency terms[27](index=27&type=chunk) - North American sales grew **12.9%**, and European sales grew **11.6%**[27](index=27&type=chunk) - Growth is driven by a strong commitment to the trades and a user-focused approach[27](index=27&type=chunk) - Opportunities are continuously pursued by developing existing and new business verticals, and expanding global market coverage[27](index=27&type=chunk) - New product, the M18 FUEL 1/2"–1" Steel Pipe Threader, designed for mechanical and plumbing trades, significantly enhances jobsite productivity[29](index=29&type=chunk) - Successfully expanded business from transportation maintenance to the mining sector, accelerating regional market expansion in Australia and Latin America[29](index=29&type=chunk)[31](index=31&type=chunk) [RYOBI](index=8&type=section&id=RYOBI) RYOBI grew 8.7% in local currency, with strong growth in power tools and outdoor equipment, leveraging extensive battery platforms - RYOBI brand grew **8.7%** in local currency, with power tools achieving low double-digit growth and outdoor power equipment mid-single-digit growth[32](index=32&type=chunk) - The RYOBI ONE+ 18V battery platform boasts the industry's largest user base, with continued expansion into the RYOBI 40V series and RYOBI USB Lithium platform[32](index=32&type=chunk) - Growth strategies include strengthening the existing user base, attracting new users, and driving growth in new and existing global markets[32](index=32&type=chunk) - Collaborates with leading distribution partners such as The Home Depot, Bunnings, and key European retailers[34](index=34&type=chunk) [Floor Care and Cleaning](index=9&type=section&id=Floor%20Care%20and%20Cleaning) Floor Care and Cleaning operating profit rose 3.6% to $9.7 million, despite a 4.8% revenue decline, as it transitions to cordless products - Floor Care and Cleaning business operating profit increased **3.6% to $9.7 million**[35](index=35&type=chunk) - Revenue decreased **4.8% to $408 million** in local currency terms[35](index=35&type=chunk) - RYOBI's innovative cleaning products performed well globally, while the VAX brand was affected by a slowdown in discretionary consumer spending[35](index=35&type=chunk) - The company is driving the transition from AC to cordless cleaning products and focusing on improving overall business profitability[35](index=35&type=chunk) [Outlook](index=9&type=section&id=Outlook) Satisfied with H1 2025 results, the company invested over $1.9 billion in capacity, confident in future growth and profitability improvements - Over **$1.9 billion** has been invested since 2015 to enhance production capacity and strengthen global manufacturing footprint[37](index=37&type=chunk) - The focus for H2 2025 is on improving profitability, with continued commitment to R&D investments[37](index=37&type=chunk) - The company is confident in its internal targets of **double-digit sales growth for MILWAUKEE** and **mid-single-digit sales growth for RYOBI** in 2026[38](index=38&type=chunk) - The medium-term internal target is to achieve an EBIT margin of **10% of sales**[38](index=38&type=chunk) [Review Report on Condensed Consolidated Financial Statements](index=12&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Financial%20Statements) Deloitte reviewed TTI's H1 2025 condensed consolidated financial statements, finding no material non-compliance with HKAS 34 - Deloitte Touche Tohmatsu has reviewed the condensed consolidated financial statements and found no matters leading them to believe they are not prepared in all material respects in accordance with HKAS 34[58](index=58&type=chunk) - The scope of the review is substantially less than an audit conducted in accordance with Hong Kong Standards on Auditing, thus no audit opinion is expressed[57](index=57&type=chunk) [Condensed Consolidated Financial Statements](index=13&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents TTI's H1 2025 condensed consolidated financial statements, covering profit or loss, financial position, equity changes, cash flows, and notes [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) H1 2025 revenue was $7.833 billion, gross profit $3.156 billion, and profit attributable to shareholders $628 million, with total comprehensive income of $601 million Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Revenue | 7,833,083 | 7,311,988 | | Gross Profit | 3,155,807 | 2,920,717 | | Profit Before Tax | 681,496 | 593,706 | | Profit Attributable to Shareholders for the Period | 628,339 | 550,365 | | Total Comprehensive Income for the Period | 600,883 | 515,282 | - Other comprehensive loss for the period was primarily due to a **$191 million** fair value loss on foreign exchange forward contracts and cross-currency interest rate swaps in hedge accounting, partially offset by a **$164 million** gain from exchange differences on translating overseas operations[60](index=60&type=chunk) [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets were $5.137 billion, current assets $8.758 billion, and total equity attributable to shareholders $6.655 billion Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Non-current Assets | 5,136,587 | 5,191,125 | | Current Assets | 8,758,100 | 7,699,364 | | Inventories | 4,293,010 | 4,076,210 | | Bank Balances, Deposits and Cash | 1,608,391 | 1,232,347 | | Current Liabilities | 5,676,383 | 4,919,034 | | Net Current Assets | 3,081,717 | 2,780,330 | | Total Equity Attributable to Shareholders | 6,655,351 | 6,363,597 | | Non-current Liabilities | 1,562,953 | 1,607,858 | [Condensed Consolidated Statement of Changes in Equity](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to shareholders increased from $6.364 billion to $6.655 billion in H1 2025, driven by profit, despite hedging losses - Total equity attributable to shareholders increased from **$6.364 billion** as of December 31, 2024, to **$6.655 billion** as of June 30, 2025[63](index=63&type=chunk) - Profit for the period was **$628 million**, but a fair value loss of **$27.456 million** on foreign exchange forward contracts and cross-currency interest rate swaps in hedge accounting resulted in other comprehensive loss[63](index=63&type=chunk) - Share repurchases amounted to **$15.521 million**, and final dividends paid totaled **$278 million** during the period[63](index=63&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) H1 2025 net cash from operating activities was $719 million, with period-end cash and cash equivalents at $1.608 billion Summary of Condensed Consolidated Statement of Cash Flows | Activity Type | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 719,108 | 774,916 | | Net Cash Used In Investing Activities | (218,086) | (234,591) | | Net Cash Used In Financing Activities | (177,831) | (246,845) | | Net Increase In Cash And Cash Equivalents | 323,191 | 293,480 | | Cash And Cash Equivalents At End Of Period | 1,608,391 | 1,226,545 | [Notes to the Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on accounting policies, segment data, revenue, tax, profit, dividends, EPS, asset additions, receivables, payables, borrowings, and capital commitments [1. Basis of Preparation](index=19&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared per HKAS 34 "Interim Financial Reporting" and applicable HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the HKEX Listing Rules[66](index=66&type=chunk) [2. Significant Accounting Policies](index=19&type=section&id=2.%20Significant%20Accounting%20Policies) Financial statements are prepared on a historical cost basis, with some financial instruments at fair value; new HKFRS amendments had no material impact - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[66](index=66&type=chunk) - The application of amendments to HKFRS accounting standards in this interim period had no material impact on the Group's financial position and performance[67](index=67&type=chunk) [3. Segment Information](index=20&type=section&id=3.%20Segment%20Information) The Group's revenue and results are analyzed across Power Tools ($7.425 billion) and Floor Care and Cleaning ($408 million) segments H1 2025 Segment Revenue | Segment | Thousand USD | | :--- | :--- | | Power Tools | 7,425,059 | | Floor Care and Cleaning | 408,024 | | **Total** | **7,833,083** | H1 2025 Segment Results | Segment | Thousand USD | | :--- | :--- | | Power Tools | 699,588 | | Floor Care and Cleaning | 9,664 | | **Consolidated** | **709,252** | [4. Revenue](index=21&type=section&id=4.%20Revenue) H1 2025 revenue was $7.833 billion, mainly from goods sales, with North America contributing $5.872 billion H1 2025 Revenue Composition | Revenue Source | 2025 (Thousand USD) | | :--- | :--- | | Sales of Goods | 7,826,450 | | Commission and Royalty Income | 6,633 | | **Total** | **7,833,083** | H1 2025 Revenue by Geographical Region | Region | 2025 (Thousand USD) | | :--- | :--- | | North America | 5,871,986 | | Europe | 1,400,825 | | Other Countries | 560,272 | | **Total** | **7,833,083** | [5. Income Tax Expense](index=21&type=section&id=5.%20Income%20Tax%20Expense) H1 2025 income tax expense was $53.157 million, mainly overseas taxes, with a temporary exception for Pillar Two legislation H1 2025 Income Tax Expense | Tax Category | 2025 (Thousand USD) | | :--- | :--- | | Hong Kong Profits Tax | (815) | | Overseas Tax | (53,601) | | Deferred Tax | 1,259 | | **Total** | **(53,157)** | - The Group has accrued supplementary tax under Pillar Two legislation and applied the temporary mandatory exception, not recognizing deferred tax assets and liabilities[76](index=76&type=chunk) [6. Profit for the Period](index=22&type=section&id=6.%20Profit%20for%20the%20Period) Profit for the period was after deducting $329.5 million in depreciation, $8.983 million in receivables impairment, and $39.007 million in inventory write-downs H1 2025 Profit for the Period Adjustments | Item | 2025 (Thousand USD) | | :--- | :--- | | Total Depreciation and Amortization | 329,535 | | Impairment Loss on Trade Receivables under ECL Model | 8,983 | | Write-down of Inventories | 39,007 | | Staff Costs | 1,436,495 | [7. Dividends](index=22&type=section&id=7.%20Dividends) A 2024 final dividend of HK$1.18 ($278 million) was paid, and an H1 2025 interim dividend of HK$1.25 ($295 million) was declared - A 2024 final dividend of **HK$1.18 (approx. 15.19 US cents)** per share, totaling approximately **$278 million**, was paid on June 27, 2025[78](index=78&type=chunk) - The Board resolved to declare an H1 2025 interim dividend of **HK$1.25 (approx. 16.09 US cents)** per share, totaling approximately **$295 million**, to be paid on or about September 19, 2025[78](index=78&type=chunk) [8. Earnings Per Share](index=22&type=section&id=8.%20Earnings%20Per%20Share) H1 2025 basic EPS was 34.37 US cents and diluted EPS 34.29 US cents, with no assumed option exercise due to higher prices H1 2025 Earnings Per Share | Metric | 2025 (US cents) | 2024 (US cents) | | :--- | :--- | :--- | | Basic | 34.37 | 30.12 | | Diluted | 34.29 | 29.98 | - The exercise of share options and vesting of share awards were not assumed for diluted EPS calculation as their exercise prices were higher than the average market price of shares[79](index=79&type=chunk) [9. Additions to Property, Plant and Equipment / Intangible Assets / Right-of-Use Assets](index=23&type=section&id=9.%20Additions%20to%20Property%2C%20Plant%20and%20Equipment%20%E2%81%84%20Intangible%20Assets%20%E2%81%84%20Right-of-Use%20Assets) The Group acquired $95.815 million in PPE, $156 million in intangible assets, and recognized $42.294 million in right-of-use assets and lease liabilities - Property, plant and equipment acquisitions amounted to approximately **$95.815 million** during the period[80](index=80&type=chunk) - Intangible assets additions amounted to approximately **$156 million**[80](index=80&type=chunk) - Right-of-use assets and lease liabilities of **$42.294 million** each were recognized[80](index=80&type=chunk) [10. Trade and Other Receivables / Bills Receivable](index=23&type=section&id=10.%20Trade%20and%20Other%20Receivables%20%E2%81%84%20Bills%20Receivable) As of June 30, 2025, net trade receivables were $2.492 billion and other receivables $94.555 million, with 60 trade receivables turnover days June 30, 2025 Trade and Other Receivables | Item | Thousand USD | | :--- | :--- | | Trade Receivables (net) | 2,492,487 | | Other Receivables | 94,555 | | **Total** | **2,587,042** | - Trade receivables turnover days remained at **60 days**, and all bills receivable were aged within **120 days**[45](index=45&type=chunk)[81](index=81&type=chunk) [11. Trade Receivables from Associates](index=23&type=section&id=11.%20Trade%20Receivables%20from%20Associates) As of June 30, 2025, all trade receivables from associates were aged within 120 days - Trade receivables from associates as of June 30, 2025, were aged within **120 days**[82](index=82&type=chunk) [12. Trade and Other Payables / Bills Payable](index=24&type=section&id=12.%20Trade%20and%20Other%20Payables%20%E2%81%84%20Bills%20Payable) As of June 30, 2025, trade payables were $2.193 billion and other payables $2.133 billion, with 102 payables turnover days June 30, 2025 Trade and Other Payables | Item | Thousand USD | | :--- | :--- | | Total Trade Payables | 2,192,739 | | Other Payables | 2,133,383 | | **Total** | **4,326,122** | - Trade payables turnover days were **102 days**, an increase from **96 days** in the prior year period[46](index=46&type=chunk) - Other payables primarily represent accrued selling, general, and administrative expenses of **$1.886 billion**[84](index=84&type=chunk) [13. Unsecured Borrowings](index=24&type=section&id=13.%20Unsecured%20Borrowings) The Group obtained $3.258 billion in new unsecured borrowings and repaid $3.108 billion, with a $752 million carrying value as of June 30, 2025 - New unsecured borrowings of **$3.258 billion** were obtained, and **$3.108 billion** was repaid during the period[85](index=85&type=chunk) - As of June 30, 2025, the carrying value of unsecured borrowings was **$752 million**[85](index=85&type=chunk) - The Group complied with all financial ratio covenants and classified relevant bank loan balances as non-current[85](index=85&type=chunk) [14. Share Capital](index=25&type=section&id=14.%20Share%20Capital) As of June 30, 2025, issued share capital was $690 million (1.831 billion shares), with 1.25 million shares repurchased for $15.521 million June 30, 2025 Share Capital Movement | Item | Number of Shares | Share Capital (Thousand USD) | | :--- | :--- | :--- | | At Beginning of Period | 1,832,304,941 | 689,684 | | Shares Issued on Exercise of Share Options | 40,000 | 307 | | Shares Repurchased | (1,250,000) | — | | **At End of Period** | **1,831,094,941** | **689,991** | - During the period, **1,250,000 ordinary shares** were repurchased for a total consideration of approximately **$15.521 million**, deducted from retained profits[86](index=86&type=chunk) - Share repurchases aim to enhance the company's net asset value per share and earnings per share, benefiting all shareholders[142](index=142&type=chunk) [15. Fair Value Measurement of Financial Instruments](index=26&type=section&id=15.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) Financial assets and liabilities are measured at fair value on a recurring basis, categorized into Level 1-3 based on observable inputs - The Group's financial assets and liabilities are measured at fair value on a recurring basis and categorized into Level 1 to 3 based on the observability of fair value measurement inputs[88](index=88&type=chunk)[90](index=90&type=chunk) - Key financial instruments include derivative financial instruments (e.g., foreign exchange forward contracts, cross-currency interest rate swaps) and financial assets at fair value through profit or loss (e.g., listed equities, club debentures, unlisted equity securities)[89](index=89&type=chunk) [16. Capital Commitments](index=27&type=section&id=16.%20Capital%20Commitments) As of June 30, 2025, contracted but unprovided capital commitments for PPE and equity investments totaled $153 million - As of June 30, 2025, total contracted but unprovided capital commitments for property, plant and equipment acquisitions and equity investments amounted to **$153 million**[91](index=91&type=chunk) [Corporate Governance and Other Information](index=28&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details corporate governance, directors' interests, share schemes, major shareholders, Listing Rules compliance, and director information [Directors' and Chief Executive's Interests](index=28&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, directors and the chief executive held company share interests, with Chairman Mr. Horst Julius Pudwill holding 21.83% June 30, 2025 Directors' and Chief Executive's Share Interests | Director Name | Total Interests in Shares / Related Shares | Approximate Percentage of Total Interests | | :--- | :--- | :--- | | Mr. Horst Julius Pudwill | 399,802,294 | 21.83% | | Mr. Stephan Horst Pudwill | 11,334,500 | 0.62% | | Mr. Steven Philip Richman | 2,400,000 | 0.13% | | Mr. Chan Kin Wah | 6,316,000 | 0.34% | | Mr. Chan Chi Chung | 6,975,000 | 0.38% | | Mr. Camille Jojo | 1,267,500 | 0.07% | | Mr. Peter David Sullivan | 619,000 | 0.03% | | Mr. Johannes-Gerhard Hesse | 586,000 | 0.03% | | Mr. Robert Hinman Getz | 394,674 | 0.02% | | Ms. Virginia Davis Wilmerding | 194,500 | 0.01% | | Ms. Caroline Christina Kracht | 152,500 | 0.01% | | Mr. Andrew Philip Roberts | 80,000 | <0.01% | | Ms. Ng Ka Fai | 40,000 | <0.01% | | Mr. Wong Tze Chuen | 40,000 | <0.01% | - Mr. Horst Julius Pudwill's interests include beneficial owner, spouse's interests, and controlled corporation interests[93](index=93&type=chunk) [Share Options](index=30&type=section&id=Share%20Options) The company operates D and E share option schemes, with E scheme revised to cap options at 10% of issued capital; 22.41 million unexercised options were outstanding - The company operates two share option schemes, Plan D and Plan E, with Plan E revised on May 12, 2023, to cap the total number of options at **10% of issued share capital**[98](index=98&type=chunk)[101](index=101&type=chunk) - As of June 30, 2025, **22.41 million unexercised share options** were outstanding, representing approximately **1.22%** of issued shares[104](index=104&type=chunk) - During the period, **1,525,000 share options** were granted, and a total expense of **$3.454 million** was recognized[104](index=104&type=chunk)[106](index=106&type=chunk) [Arrangements to Purchase Shares or Debentures](index=35&type=section&id=Arrangements%20to%20Purchase%20Shares%20or%20Debentures) Except for share award schemes, neither the company nor its subsidiaries had arrangements enabling directors to benefit from purchasing shares or debentures - Except for share award schemes, neither the company nor its subsidiaries had any arrangements during the year enabling directors to benefit from purchasing shares or debentures of the company or any other body corporate[107](index=107&type=chunk) [Directors' Material Interests in Transactions, Arrangements or Contracts](index=35&type=section&id=Directors'%20Material%20Interests%20in%20Transactions%2C%20Arrangements%20or%20Contracts) No director or associated entity had a material direct or indirect interest in any significant transaction, arrangement, or contract with the company or its subsidiaries - No director or their associated entity had a material direct or indirect interest in any significant transaction, arrangement, or contract entered into by the company or its subsidiaries during the period[108](index=108&type=chunk) [Directors' Indemnity](index=35&type=section&id=Directors'%20Indemnity) Each director is entitled to indemnity for losses or liabilities incurred in duties, and the company has arranged appropriate D&O liability insurance - Each director is entitled to indemnity for losses or liabilities incurred in performing their duties[109](index=109&type=chunk) - The company has arranged appropriate directors' and officers' liability insurance[109](index=109&type=chunk) [Management Contracts](index=35&type=section&id=Management%20Contracts) The company had no contracts concerning the management and administration of the Group or any substantial business part during the period - The company had no contracts concerning the management and administration of the Group as a whole or any substantial part of its business during the period[110](index=110&type=chunk) [Share-Linked Schemes](index=35&type=section&id=Share-Linked%20Schemes) Except for awards under the share award schemes, the Group had no share-linked agreements during the period - Except for share award schemes, the Group had no share-linked agreements during the period[111](index=111&type=chunk) [Share Award Scheme](index=36&type=section&id=Share%20Award%20Scheme) The 2018 Share Award Scheme, revised to cap awards at 10% of issued capital, had 19.726 million shares awarded with $14.234 million in expenses - The 2018 Share Award Scheme aims to recognize contributions from eligible persons and attract and retain talent for the Group[112](index=112&type=chunk) - The scheme was revised on May 12, 2023, to cap the total number of awarded shares at **10% of issued share capital**[114](index=114&type=chunk) - As of June 30, 2025, a total of **19,725,500 shares** had been awarded, representing **1.08%** of issued share capital[116](index=116&type=chunk) - Share-based payment expenses of **$14.234 million** were recognized during the period, and **2,025,000 shares** were awarded to directors and selected grantees[116](index=116&type=chunk) [Employee Share Award Scheme](index=41&type=section&id=Employee%20Share%20Award%20Scheme) The Board approved the Employee Share Award Scheme, effective May 8, 2025, as a single plan not involving new share issuance, aimed at attracting and retaining employees - The Board approved the adoption of the Employee Share Award Scheme, effective May 8, 2025[124](index=124&type=chunk) - The scheme is a single share award plan that does not involve the issuance of new shares or resale of treasury shares[124](index=124&type=chunk) - It aims to attract and retain employees, align their interests with shareholders, and promote the company's business success[124](index=124&type=chunk) [Major Shareholders' Interests](index=41&type=section&id=Major%20Shareholders'%20Interests) As of June 30, 2025, major shareholders included JPMorgan Chase (9.93%), BNY Mellon (7.64%), Capital Group (7.00%), and BlackRock (5.06%) June 30, 2025 Major Shareholders' Interests | Name | Total Interests in Shares (Long Position) | Approximate Percentage of Total Interests | | :--- | :--- | :--- | | JPMorgan Chase & Co. | 181,804,584 | 9.93% | | The Bank of New York Mellon Corporation | 139,955,933 | 7.64% | | The Capital Group Companies, Inc. | 128,163,969 | 7.00% | | BlackRock, Inc. | 92,602,298 | 5.06% | [Compliance with the Listing Rules' Corporate Governance Code](index=46&type=section&id=Compliance%20with%20the%20Listing%20Rules'%20Corporate%20Governance%20Code) The company complied with all Corporate Governance Code provisions for H1 2025, except for directors lacking specific appointment terms - The company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[136](index=136&type=chunk) - Directors do not have a specific term of appointment but are subject to retirement by rotation and re-election in accordance with the company's Articles of Association[136](index=136&type=chunk) [Compliance with the Listing Rules' Model Code](index=46&type=section&id=Compliance%20with%20the%20Listing%20Rules'%20Model%20Code) The Board adopted and directors complied with the Model Code for Securities Transactions and the employee code of conduct, with no breaches - The Board adopted and all directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules[137](index=137&type=chunk) - The company also adopted a code of conduct for employees with unpublished sensitive information, with no breaches found during the period[137](index=137&type=chunk) [Changes in Directors' Information](index=46&type=section&id=Changes%20in%20Directors'%20Information) Mr. Robert Hinman Getz was appointed as the company's Lead Independent Non-executive Director effective March 31, 2025 - Independent Non-executive Director Mr. Robert Hinman Getz was appointed as the company's Lead Independent Non-executive Director effective March 31, 2025[139](index=139&type=chunk) [Changes in Directors' Remuneration](index=46&type=section&id=Changes%20in%20Directors'%20Remuneration) Ms. Kracht and Mr. Wong were appointed to the Nomination Committee; Mr. Roberts and Ms. Ng to the Remuneration Committee, effective March 31, 2025 - Ms. Caroline Christina Kracht and Mr. Wong Tze Chuen were appointed as members of the Nomination Committee[140](index=140&type=chunk) - Mr. Andrew Philip Roberts and Ms. Ng Ka Fai were appointed as members of the Remuneration Committee[140](index=140&type=chunk) - Newly appointed committee members will be entitled to remuneration determined by the Board[140](index=140&type=chunk) [Review of Accounts](index=46&type=section&id=Review%20of%20Accounts) The Audit Committee, with auditors and management, reviewed the report, accounting principles, internal controls, and financial reporting - The Audit Committee, with independent auditors and senior management, reviewed this report, accounting principles, practices, internal controls, and financial reporting matters[141](index=141&type=chunk) - The Board confirmed its responsibility for preparing the Group's accounts[141](index=141&type=chunk) [Company Information](index=46&type=section&id=Company%20Information) This section provides key company details: Board, 2025 financial calendar, investor relations, listing information, and forward-looking statements disclaimer [Board of Directors](index=48&type=section&id=Board%20of%20Directors) The Board comprises executive and independent non-executive directors, including Chairman Mr. Horst Julius Pudwill, Vice Chairman Mr. Stephan Horst Pudwill, and CEO Mr. Steven Philip Richman - Board members include Executive Directors such as Chairman Mr. Horst Julius Pudwill, Vice Chairman Mr. Stephan Horst Pudwill, and Chief Executive Officer Mr. Steven Philip Richman[145](index=145&type=chunk) - Independent Non-executive Directors include Mr. Peter David Sullivan, Mr. Johannes-Gerhard Hesse, and Mr. Robert Hinman Getz[145](index=145&type=chunk) [2025 Financial Calendar](index=48&type=section&id=2025%20Financial%20Calendar) Key 2025 financial dates include the 2024 final dividend payment, H1 2025 interim results announcement, and interim dividend payment 2025 Financial Calendar | Date | Event | | :--- | :--- | | June 27 | Payment of 2024 Final Dividend | | June 30 | Six-month Interim Results Closing Date | | August 5 | Announcement of 2025 Interim Results | | September 3 | Last Day for Registration for 2025 Interim Dividend | | September 4 to 5 | Closure of Register of Members for 2025 Interim Dividend | | September 5 | Record Date for 2025 Interim Dividend | | September 19 | Payment of 2025 Interim Dividend | | December 31 | Financial Year Closing Date | [Investor Relations Contact](index=48&type=section&id=Investor%20Relations%20Contact) Investor relations contact details for North America and Asia Pacific, including email and website, are provided for accessing earnings results and reports - Investor relations contact emails for North America and Asia Pacific, and the company website (www.ttigroup.com), are provided[146](index=146&type=chunk) - Earnings results, annual/interim reports are published on the company website[146](index=146&type=chunk) [Listing Information](index=48&type=section&id=Listing%20Information) The company is listed on HKEX (code: 669) with Level 1 ADRs (TTNDY) and US foreign ordinary shares (TTNDF), with details on registrars and auditors - The company is listed on the Hong Kong Stock Exchange (ordinary shares stock code: **669**), with Level 1 American Depositary Receipts (ticker: **TTNDY**) and US foreign ordinary shares (ticker: **TTNDF**)[147](index=147&type=chunk) - The share registrar is Tricor Secretaries Limited, and the auditor is Deloitte Touche Tohmatsu[147](index=147&type=chunk) - All listed trademarks, except AEG and RYOBI, are owned by the Group[147](index=147&type=chunk) [Forward-Looking Statements](index=48&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements based on TTI's current expectations, estimates, and assumptions, subject to market risks and uncertainties - This report contains forward-looking statements based on Techtronic Industries' current expectations, estimates, forecasts, beliefs, and assumptions[148](index=148&type=chunk) - These statements are not guarantees of future performance and are subject to market risks, uncertainties, and factors beyond the company's control, where actual results may differ materially[148](index=148&type=chunk)

[Company Information](index=4&type=section&id=Company%20Information) This section outlines key corporate governance changes, including board appointments and resignations, and provides essential company identification details - Changes in board members include Ms. Liu Tanying's resignation as Executive Director on December 12, 2024, and Mr. Thanakon Kunna's appointment on January 1, 2025. Mr. Liu Hongli resigned as Independent Non-executive Director on December 1, 2023, and Mr. Lok Ho Wai was appointed on April 30, 2024[5](index=5&type=chunk) - Changes in authorized representative and company secretary: Mr. Xu Zhigang resigned on May 10, 2024, and Mr. Shen Ziliang was appointed on May 10, 2024[5](index=5&type=chunk) - The auditor is Zhongzheng Tianheng Certified Public Accountants Limited, the company stock code is **8321**, and the company website is www.taikamholdings.com[5](index=5&type=chunk)[6](index=6&type=chunk) [Chairman's Report](index=5&type=section&id=Chairman's%20Report) This report highlights the company's financial performance, including revenue growth and reduced net loss, and outlines future strategic directions and market outlook Key Financial Performance | Metric | 2025 (Million HKD) | 2024 (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 40.6 | 38.1 | Increase 2.5 (6.6%) | | Net Loss | (5.9) | (11.4) | Decrease 5.5 (48.2%) | - The reduction in net loss is primarily due to decreased impairment losses (net of reversals) on trade and other receivables and contract assets, alongside an increase in other gains or losses[9](index=9&type=chunk) - Looking ahead, significant government commitments to infrastructure development in Hong Kong are expected to improve market sentiment and attract more capital to the construction industry[10](index=10&type=chunk) - The Group plans to expand and diversify its business scope, including property development design and construction, and investing in potential properties for capital appreciation and stable rental income[10](index=10&type=chunk) - The Group will remain focused on site formation and fitting-out works within Hong Kong's construction industry, continuously enhancing its competitive advantages[10](index=10&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the Group's operational performance, financial position, liquidity, and investment portfolio, highlighting key drivers of revenue, profitability, and expense changes - The Group primarily engages in construction business in Hong Kong, encompassing site formation and fitting-out works[14](index=14&type=chunk) Revenue and Gross Profit Overview | Metric | 2025 (Million HKD) | 2024 (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 40.6 | 38.1 | Increase 2.5 (6.6%) | | Gross Profit | 1.7 | 0.7 | Increase 1.0 (142.9%) | | Gross Profit Margin | 4.2% | 1.9% | Increase 2.3 percentage points | - The increase in gross profit margin is mainly attributable to higher contract revenue from projects with better margins during the reporting period[17](index=17&type=chunk) - Administrative expenses increased by **53.8%** to **6.0 million HKD**, primarily due to higher legal and professional fees and staff costs[18](index=18&type=chunk) - Other gains or losses increased by approximately **2.8 million HKD**, mainly due to increased unrealized gains from fair value changes of financial assets at fair value through profit or loss[19](index=19&type=chunk) Liquidity Position | Metric | 2025 (Million HKD) | 2024 (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Owners | 58.9 | 64.8 | Decrease 5.9 | | Cash and Bank Balances | 3.1 | 10.5 | Decrease 7.4 | - As at April 30, 2025, the Group's gearing ratio was **zero** (2024: zero)[28](index=28&type=chunk) Significant Investment Portfolio (As at April 30, 2025) | Company Name | Fair Value Change (Thousand HKD) | Fair Value (Thousand HKD) | Approximate Percentage of Financial Assets at FVTPL | Approximate Percentage of Total Assets | | :--- | :--- | :--- | :--- | :--- | | Hao Wen Holdings Limited | 1,750 | 3,888 | 18.4% | 5.0% | | China Integrated Holdings Limited | 379 | 5,410 | 25.5% | 7.0% | | Other Securities | (2,198) | 11,878 | 56.1% | 15.3% | | **Total** | **(69)** | **21,176** | **100.0%** | **27.3%** | - The Group did not acquire any subsidiaries or associates during the reporting period, nor did it have other plans for significant investments or capital assets[40](index=40&type=chunk) [Directors and Senior Management](index=12&type=section&id=Directors%20and%20Senior%20Management) This section lists the executive and independent non-executive directors, along with key senior management appointments and their professional backgrounds - Executive Directors include Mr. Lang Junhao (Chairman), Ms. Liu Tanying (resigned), and Mr. Thanakon Kunna (newly appointed)[41](index=41&type=chunk) - Independent Non-executive Directors include Ms. Li Yixuan, Mr. Luo Zhiyong, and Mr. Lok Ho Wai (newly appointed)[42](index=42&type=chunk) - Mr. Shen Ziliang, a member of senior management, was appointed Company Secretary and Authorized Representative on May 10, 2024, possessing accounting, auditing, and financial experience[45](index=45&type=chunk) [Corporate Governance Report](index=14&type=section&id=Corporate%20Governance%20Report) This report details the company's commitment to maintaining high standards of corporate governance, adherence to GEM Listing Rules, and the structure and functions of its board and committees - The Company is committed to achieving and maintaining a high level of corporate governance, applying the principles of the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules[47](index=47&type=chunk) - During the reporting period, the Company complied with the Corporate Governance Code, with a deviation regarding board meeting notice periods being less than 14 days to facilitate timely decision-making[47](index=47&type=chunk) - The Board comprises five directors, including two Executive Directors and three Independent Non-executive Directors, with Independent Non-executive Directors constituting more than one-third of the Board[51](index=51&type=chunk) - The Company has adopted a Board Diversity Policy emphasizing a balance of skills, experience, and diverse perspectives, including gender, age, culture, and educational background[53](index=53&type=chunk) - Seven Board meetings were held during the reporting period[57](index=57&type=chunk) - The Board has established an Audit Committee, Remuneration Committee, and Nomination Committee to assist in fulfilling its responsibilities[61](index=61&type=chunk) - The Audit Committee, composed of three Independent Non-executive Directors, is responsible for overseeing internal controls, risk management, and the integrity of financial statements[62](index=62&type=chunk) - The Board is responsible for continuous oversight of the Group's risk management and internal control systems and reviewing their effectiveness[84](index=84&type=chunk) - Audit service fees paid and payable to Zhongzheng Tianheng Certified Public Accountants Limited during the reporting period amounted to **380 thousand HKD**[87](index=87&type=chunk) - The Company has adopted a dividend policy where the Board considers various factors, including financial performance, working capital requirements, and liquidity position, when deciding on dividend distribution[100](index=100&type=chunk)[101](index=101&type=chunk)[103](index=103&type=chunk) [Directors' Report](index=26&type=section&id=Directors'%20Report) This report provides an overview of the Group's principal activities, compliance with regulations, business relationships, share capital, reserves, and environmental, social, and governance commitments - The Group's business is primarily conducted by its subsidiaries in Hong Kong, complying with relevant Hong Kong laws and regulations, with no material breaches during the reporting period[106](index=106&type=chunk) - The Group maintains business relationships ranging from one to over seven years with most of its major customers, suppliers, and subcontractors[108](index=108&type=chunk)[109](index=109&type=chunk) Major Customer and Supplier Contributions | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total revenue from largest customer as % of total revenue | Approx. 71.6% | Approx. 51.5% | | Total revenue from top five customers as % of total revenue | 100.0% | 100.0% | | Purchases from largest supplier as % of total purchases | Approx. 48.3% | Approx. 40.6% | | Purchases from top five suppliers as % of total purchases | Approx. 80.9% | Approx. 87.1% | - The Group considers its construction engineering business in Hong Kong as a single operating segment and does not present separate segment information by geographical segment[113](index=113&type=chunk) - No interim or final dividends were declared or paid during the reporting period[116](index=116&type=chunk) - As at April 30, 2025, the total issued share capital of the Company was **246,400,000** ordinary shares of **HKD0.05** each[118](index=118&type=chunk) - As at April 30, 2025, the Company's distributable reserves amounted to approximately **20.2 million HKD** (2024: approximately **19.5 million HKD**)[123](index=123&type=chunk) Directors' Interests in Shares and Underlying Shares of the Company (As at April 30, 2025) | Director Name | Personal Interests (Number of Unlisted Share Options) | Total (Number of Unlisted Share Options) | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Ms. Li Yixuan | 1,600,000 | 1,600,000 | 0.65% | - The total number of outstanding share options as at April 30, 2025, was **45,440,000** shares, representing **18.5%** of the Company's issued shares (2024: **19.1%**)[139](index=139&type=chunk)[143](index=143&type=chunk) - The Group is committed to monitoring and minimizing its environmental impact, with an Environmental, Social and Governance Report to be disclosed separately[147](index=147&type=chunk) [Independent Auditor's Report](index=35&type=section&id=Independent%20Auditor's%20Report) The independent auditor, Zhongzheng Tianheng Certified Public Accountants Limited, issued an unmodified opinion on the consolidated financial statements, affirming their fair presentation of the Group's financial position, performance, and cash flows - Independent auditor Zhongzheng Tianheng Certified Public Accountants Limited issued an unmodified opinion on the consolidated financial statements, deeming them to present fairly the Group's financial position, performance, and cash flows[151](index=151&type=chunk) - A key audit matter is the impairment assessment of trade and other receivables and contract assets, involving management's judgment and estimation of recoverability and the adequacy of credit loss provisions[155](index=155&type=chunk) - Audit procedures included evaluating management's input data for impairment assessment, challenging judgment bases, and assessing disclosures[159](index=159&type=chunk) - The 2024 financial statements were audited by another auditor who also issued an unmodified opinion[156](index=156&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=39&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's financial performance for the year, detailing revenue, costs, expenses, and the resulting net loss and total comprehensive expenses attributable to owners Consolidated Statement of Profit or Loss and Other Comprehensive Income Overview | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 40,550 | 38,132 | | Direct costs | (38,834) | (37,408) | | Gross Profit | 1,716 | 724 | | Other income and other gains or losses | 226 | (2,547) | | Impairment losses on trade and other receivables and contract assets, net of reversals | (1,877) | (5,649) | | Administrative expenses | (5,953) | (3,937) | | Operating Loss | (5,888) | (11,409) | | Loss Before Tax | (5,888) | (11,409) | | Income Tax Expense | – | – | | Loss and Total Comprehensive Expenses for the Year Attributable to Owners of the Company | (5,888) | (11,409) | Loss Per Share | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (2.39) | (4.63) | [Consolidated Statement of Financial Position](index=40&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the Group's assets, liabilities, and equity as at the reporting date, reflecting its financial health and structure Consolidated Statement of Financial Position Overview | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Non-current Assets - Other receivables | 3,776 | 3,836 | | Current Assets - Financial assets at fair value through profit or loss | 21,176 | 22,763 | | Current Assets - Trade and other receivables | 38,292 | 35,455 | | Current Assets - Contract assets | 9,785 | 9,845 | | Current Assets - Cash and bank balances | 3,074 | 10,487 | | **Total Current Assets** | **73,848** | **80,071** | | Current Liabilities - Trade and other payables | 18,698 | 19,043 | | Current Liabilities - Tax payable | 27 | 77 | | **Total Current Liabilities** | **18,725** | **19,120** | | Net Current Assets | 55,123 | 60,951 | | Total Assets Less Current Liabilities | 58,899 | 64,787 | | **Total Equity Attributable to Owners of the Company** | **58,899** | **64,787** | [Consolidated Statement of Changes in Equity](index=41&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement illustrates the movements in each component of the Group's equity over the reporting period, including share capital, share premium, share option reserve, and accumulated losses Consolidated Statement of Changes in Equity Overview | Metric | Share Capital (Thousand HKD) | Share Premium (Thousand HKD) | Share Option Reserve (Thousand HKD) | Accumulated Losses (Thousand HKD) | Total (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | May 1, 2023 | 12,320 | 65,244 | 13,395 | (14,763) | 76,196 | | Loss and total comprehensive expenses for the year | – | – | – | (11,409) | (11,409) | | April 30, 2024 and May 1, 2024 | 12,320 | 65,244 | 13,395 | (26,172) | 64,787 | | Loss and total comprehensive expenses for the year | – | – | – | (5,888) | (5,888) | | Lapsed share options | – | – | (124) | 124 | – | | **April 30, 2025** | **12,320** | **65,244** | **13,271** | **(31,936)** | **58,899** | [Consolidated Statement of Cash Flows](index=42&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities, providing insights into the Group's liquidity and solvency Consolidated Statement of Cash Flows Overview | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (10,715) | 8,941 | | Cash generated from investing activities | 3,302 | – | | Cash generated from financing activities | – | – | | Net (decrease) / increase in cash and cash equivalents | (7,413) | 8,941 | | Cash and cash equivalents at end of year | 3,074 | 10,487 | - Net cash outflow from operating activities was primarily influenced by loss before tax, changes in financial assets at fair value through profit or loss, trade and other receivables, contract assets, and trade and other payables[173](index=173&type=chunk) - Net cash inflow from investing activities mainly resulted from proceeds of **3.25 million HKD** from the redemption of convertible bonds receivable[173](index=173&type=chunk) [Notes to the Consolidated Financial Statements](index=43&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, covering accounting policies, estimates, and specific financial statement line items [1. General Information](index=43&type=section&id=1.%20General%20Information) Tai Kam Holdings Limited is an investment holding company primarily engaged in site formation and fitting-out works in Hong Kong, listed on GEM since October 28, 2016 - The Company is an investment holding company primarily engaged in site formation and fitting-out works in Hong Kong[176](index=176&type=chunk) - The Company's shares have been listed on GEM of The Stock Exchange of Hong Kong Limited since October 28, 2016[177](index=177&type=chunk) [2. Application of New and Revised Hong Kong Financial Reporting Standards](index=43&type=section&id=2.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) This year marks the first application of several revised Hong Kong Financial Reporting Standards, which have not materially impacted the Group's current or prior period financial position or performance, with HKFRS 18 potentially affecting future disclosures - Several revised Hong Kong Financial Reporting Standards were first applied this year, with no material impact on the Group's current and prior period financial position and performance and/or the disclosures contained in these consolidated financial statements[178](index=178&type=chunk) - HKFRS 18 "Presentation and Disclosure in Financial Statements" will be effective for annual periods beginning on or after January 1, 2027, and the Group is currently assessing its detailed impact on the consolidated financial statements[182](index=182&type=chunk) [3. Significant Accounting Policies](index=45&type=section&id=3.%20Significant%20Accounting%20Policies) This section details the significant accounting policies followed by the Group in preparing its consolidated financial statements, including compliance, basis of preparation, consolidation, leases, financial instruments, revenue recognition, employee benefits, and taxation - These consolidated financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance[184](index=184&type=chunk) - The consolidated financial statements are prepared on the historical cost basis, except for certain financial instruments measured at fair value at the end of each reporting period[185](index=185&type=chunk) - The Group assesses impairment for financial assets (including trade and other receivables and bank balances) and contract assets subject to impairment under HKFRS 9 using the expected credit loss model, recognizing lifetime expected credit losses for trade receivables and contract assets as per usual practice[201](index=201&type=chunk)[202](index=202&type=chunk) - The Group recognizes revenue when performance obligations are satisfied (i.e., when "control" of services related to a specific performance obligation is transferred to the customer) and measures the stage of contract completion using the output method[220](index=220&type=chunk)[229](index=229&type=chunk) [4. Key Sources of Estimation Uncertainty](index=60&type=section&id=4.%20Key%20Sources%20of%20Estimation%20Uncertainty) In preparing financial statements, the Group makes judgments, estimates, and assumptions regarding the carrying amounts of assets and liabilities, with expected credit loss provisions for financial assets and contract assets measured at amortized cost being a primary source of estimation uncertainty - Expected credit loss provisions for financial assets and contract assets measured at amortized cost are key sources of estimation uncertainty, sensitive to changes in estimates[253](index=253&type=chunk) [5. Revenue](index=60&type=section&id=5.%20Revenue) The Group's revenue primarily derives from contract income for site formation and fitting-out works in Hong Kong, increasing to **40.55 million HKD** in 2025 from **38.132 million HKD** in 2024 Revenue from Contracts with Customers | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue from construction contracts | 40,550 | 38,132 | - The Group undertakes site formation and fitting-out works, with revenue recognized using the output method based on the stage of contract completion[257](index=257&type=chunk) Transaction Price Allocated to Remaining Performance Obligations from Contracts with Customers | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Within one year | 43,054 | 56,145 | [6. Segment Information](index=62&type=section&id=6.%20Segment%20Information) The Group treats its construction engineering business in Hong Kong as a single operating segment, thus not reporting segment analysis information, but discloses revenue contributions from major customers, with Customer A contributing **29.048 million HKD** in 2025 - The Group treats its construction engineering business in Hong Kong as a single operating segment and reviews the Group's overall performance to make resource allocation decisions, thus no segment analysis information is presented[259](index=259&type=chunk) Revenue Contribution from Major Customers | Customer | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Customer A | 29,048 | 19,655 | | Customer B | 4,827 | 18,477 | | Customer C | 6,675 | – | [7. Other Income and Other Gains or Losses](index=62&type=section&id=7.%20Other%20Income%20and%20Other%20Gains%20or%20Losses) In 2025, the Group's other income was **200 thousand HKD** (primarily bond interest income), and other gains or losses amounted to **26 thousand HKD**, mainly from fair value changes of financial assets at fair value through profit or loss Other Income and Other Gains or Losses | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Bond interest income | 200 | 246 | | Gains / (losses) from fair value changes of financial assets at fair value through profit or loss | 26 | (2,793) | | **Total** | **226** | **(2,547)** | [8. Loss Before Tax](index=63&type=section&id=8.%20Loss%20Before%20Tax) The Group's loss before tax was **5.888 million HKD**, primarily impacted by staff costs, subcontracting expenses, and impairment losses Loss Before Tax Adjustments | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 2,698 | 2,150 | | Auditor's remuneration: audit services | 380 | 400 | | Subcontracting expenses (included in direct costs) | 38,834 | 37,408 | | Impairment losses recognized (reversal of impairment losses) on: trade receivables | 1,248 | 5,637 | | Impairment losses recognized (reversal of impairment losses) on: contract assets | 448 | 52 | | Impairment losses recognized (reversal of impairment losses) on: other receivables | 181 | (40) | | **Total Impairment Losses** | **1,877** | **5,649** | [9. Income Tax Expense](index=63&type=section&id=9.%20Income%20Tax%20Expense) The Group incurred no assessable profits in Hong Kong for both 2025 and 2024, resulting in zero income tax expense for those years - As the Group did not generate any assessable profits in Hong Kong for both years, no provision for Hong Kong profits tax was made for those years[265](index=265&type=chunk) Reconciliation of Income Tax to Loss Before Tax | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Loss Before Tax | (5,888) | (11,409) | | Tax at Hong Kong profits tax rate of 16.5% | (972) | (1,883) | | Non-taxable income | (37) | (41) | | Non-deductible expenses | 520 | 1,599 | | Unrecognized estimated tax losses | 489 | 325 | | **Income Tax Expense** | **–** | **–** | [10. Dividends](index=64&type=section&id=10.%20Dividends) No dividends were declared or paid to shareholders by the Company during or after the reporting period - No dividends were declared or paid by the Company to its shareholders during the year (2024: nil), nor were any dividends declared after the end of the reporting period[267](index=267&type=chunk) [11. Loss Per Share](index=64&type=section&id=11.%20Loss%20Per%20Share) Basic and diluted loss per share for 2025 was **2.39 HK cents**, a reduction from **4.63 HK cents** in 2024 Loss Per Share | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (2.39) | (4.63) | - Diluted loss per share for both years is the same as basic loss per share because the Company's outstanding share options (if applicable) had an anti-dilutive effect on basic loss per share[268](index=268&type=chunk) [12. Directors' and Chief Executive's Emoluments and Five Highest Paid Individuals](index=65&type=section&id=12.%20Directors'%20and%20Chief%20Executive's%20Emoluments%20and%20Five%20Highest%20Paid%20Individuals) Total emoluments for directors and the chief executive amounted to **1.110 million HKD** in 2025, with Chairman and Chief Executive Mr. Lang Junhao receiving **543 thousand HKD**, and four directors among the five highest-paid individuals Directors' and Chief Executive's Emoluments (2025) | Director Name | Directors' Fees (Thousand HKD) | Salaries, Allowances & Benefits in Kind (Thousand HKD) | Discretionary Bonuses (Thousand HKD) | Retirement Benefit Scheme Contributions (Thousand HKD) | Total (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Lang Junhao | 543 | – | – | – | 543 | | Ms. Liu Tanying | – | 111 | – | – | 111 | | Mr. Thanakon Kunna | 96 | – | – | – | 96 | | Mr. Luo Zhiyong | 96 | – | – | – | 96 | | Ms. Li Yixuan | 120 | – | – | – | 120 | | Mr. Lok Ho Wai | 144 | – | – | – | 144 | | **Total** | **999** | **111** | **–** | **–** | **1,110** | Directors' and Chief Executive's Emoluments (2024) | Director Name | Directors' Fees (Thousand HKD) | Salaries, Allowances & Benefits in Kind (Thousand HKD) | Discretionary Bonuses (Thousand HKD) | Retirement Benefit Scheme Contributions (Thousand HKD) | Total (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Lang Junhao | 177 | – | – | – | 177 | | Ms. Liu Tanying | – | 180 | – | – | 180 | | Mr. Luo Zhiyong | 96 | – | – | – | 96 | | Ms. Li Yixuan | 120 | – | – | – | 120 | | Mr. Liu Hongli | 105 | – | – | – | 105 | | Mr. Lok Ho Wai | – | – | – | – | – | | **Total** | **498** | **180** | **–** | **–** | **678** | - For the year ended April 30, 2025, the Group's five highest-paid individuals included four directors, with the remaining highest-paid individual receiving emoluments of **141 thousand HKD** (2024: **177 thousand HKD**)[272](index=272&type=chunk) [13. Financial Assets at Fair Value Through Profit or Loss](index=68&type=section&id=13.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As at April 30, 2025, the Group's financial assets at fair value through profit or loss totaled **21.176 million HKD**, entirely comprising equity securities listed in Hong Kong, while 2024 also included redeemed convertible bonds receivable Financial Assets at Fair Value Through Profit or Loss | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Convertible bonds receivable designated as financial assets at fair value through profit or loss | – | 3,155 | | Listed equity securities classified as held for trading: equity securities listed in Hong Kong | 21,176 | 19,608 | | **Total** | **21,176** | **22,763** | - For the year ended April 30, 2025, convertible bonds were redeemed, and a fair value gain of approximately **95 thousand HKD** was recognized[273](index=273&type=chunk) [14. Trade and Other Receivables](index=69&type=section&id=14.%20Trade%20and%20Other%20Receivables) As at April 30, 2025, the Group's total trade and other receivables amounted to **42.068 million HKD** (net of non-current portion: **38.292 million HKD**), including trade receivables (net of provision) of **16.412 million HKD** and retention money of **22.500 million HKD** Trade and Other Receivables | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade receivables from contracts with customers (net of credit loss provision) | 16,412 | 13,781 | | Retention money | 22,500 | 22,500 | | Bonds receivable | 4,000 | 4,000 | | Interest receivable on bonds | 552 | 352 | | Other receivables (net of credit loss provision) | 49 | – | | Prepayments | 166 | 7 | | **Total** | **42,068** | **39,291** | | Less: Non-current portion | (3,776) | (3,836) | | **Current portion** | **38,292** | **35,455** | Ageing Analysis of Trade Receivables (Net of Credit Loss Provision) | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | 0 to 60 days | 6,293 | 1,650 | | 61 to 180 days | 2,852 | 846 | | 181 to 365 days | 605 | 1,758 | | Over 365 days | 6,662 | 9,527 | | **Total** | **16,412** | **13,781** | - As at the end of the reporting period, trade receivables with a carrying amount of approximately **10.135 million HKD** (2024: **12.250 million HKD**) (net of credit loss provision) were overdue, of which **7.267 million HKD** (2024: **11.285 million HKD**) were overdue for 180 days or more and not considered to be in default[277](index=277&type=chunk) [15. Contract Assets, Contract Costs and Contract Liabilities](index=70&type=section&id=15.%20Contract%20Assets,%20Contract%20Costs%20and%20Contract%20Liabilities) As at April 30, 2025, the Group's contract assets amounted to **9.785 million HKD** (net of provision), primarily representing retention money receivable for construction contracts, while contract costs were **1.521 million HKD**, mainly deposits paid to subcontractors Contract Assets | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Retention money receivable for construction contracts | 10,498 | 10,110 | | Less: Provision for credit losses | (713) | (265) | | **Net Contract Assets** | **9,785** | **9,845** | - Contract assets primarily relate to the Group's right to receive consideration for unbilled completed work, as these rights are conditional on the Group's future performance[281](index=281&type=chunk) - Contract costs of approximately **1.521 million HKD** (2024: **1.521 million HKD**) represent deposits paid to subcontractors for contract fulfillment costs[285](index=285&type=chunk) [16. Cash and Bank Balances](index=72&type=section&id=16.%20Cash%20and%20Bank%20Balances) As at April 30, 2025, the Group's cash and bank balances significantly decreased to **3.074 million HKD** from **10.487 million HKD** in 2024 Cash and Bank Balances | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Bank deposits and cash on hand | 3,074 | 10,487 | [17. Trade and Other Payables](index=72&type=section&id=17.%20Trade%20and%20Other%20Payables) As at April 30, 2025, the Group's total trade and other payables amounted to **18.698 million HKD**, including trade payables of **2.864 million HKD** and retention money payable of **11.501 million HKD** Trade and Other Payables | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade payables | 2,864 | 5,661 | | Accrued expenses and other payables | 4,333 | 2,269 | | Retention money payable | 11,501 | 11,113 | | **Total** | **18,698** | **19,043** | Ageing Analysis of Trade Payables | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | 0 to 30 days | – | 1,549 | | 31 to 60 days | – | 744 | | 61 to 90 days | – | 726 | | Over 90 days | 2,864 | 2,642 | | **Total** | **2,864** | **5,661** | [18. Deferred Taxation](index=73&type=section&id=18.%20Deferred%20Taxation) The Group has not recognized deferred tax assets for estimated tax losses of approximately **13.466 million HKD**, and all unrecognized tax losses can be carried forward indefinitely - Due to the unpredictability of future profit streams, no deferred tax assets were recognized for estimated tax losses of approximately **13,466 thousand HKD** (2024: **10,466 thousand HKD**) for both years[290](index=290&type=chunk) - All unrecognized tax losses can be carried forward indefinitely[290](index=290&type=chunk) [19. Share Capital](index=73&type=section&id=19.%20Share%20Capital) As at April 30, 2025, the Company's total issued and fully paid share capital comprised **246,400,000** ordinary shares of **HKD0.05** each, amounting to **12.320 million HKD** Share Capital Details | Metric | 2025 (Thousand Shares) | 2024 (Thousand Shares) | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Authorized: ordinary shares of HKD0.05 each | 400,000 | 400,000 | 20,000 | 20,000 | | Issued and fully paid: at beginning and end of year | 246,400 | 246,400 | 12,320 | 12,320 | [20. Reserves](index=73&type=section&id=20.%20Reserves) The Group's reserves include share premium, share option reserve, and accumulated losses, with share premium available for distribution or dividends to shareholders provided the company can pay its debts as they fall due - Share premium represents the difference between the par value of the Company's shares and the net proceeds received from their issuance[293](index=293&type=chunk) - In accordance with the Companies Law of the Cayman Islands, the Company's share premium account may be applied to pay distributions or dividends to shareholders, provided that immediately following the date on which the distribution or dividend is proposed to be paid, the Company shall be able to pay its debts as they fall due in the ordinary course of business[293](index=293&type=chunk) - The share option reserve represents the fair value of the actual or estimated number of share options granted to grantees that are unexercised or have lapsed, recognized in accordance with the accounting policy for share-based payments[294](index=294&type=chunk) [21. Details of Subsidiaries](index=74&type=section&id=21.%20Details%20of%20Subsidiaries) The Group's principal subsidiaries include Chuang Shing Engineering Limited (construction engineering in Hong Kong) and Prosperous Express Investment Limited (investment holding in BVI), both 100% owned by the Company Principal Subsidiaries Details | Company Name | Place of Incorporation and Business | Principal Business | Proportion of Ownership and Voting Rights Held by the Company | | :--- | :--- | :--- | :--- | | Chuang Shing Engineering Limited | Hong Kong | Undertaking fitting-out works and site formation works | 100% | | Prosperous Express Investment Limited | British Virgin Islands | Investment holding | 100% | [22. Share Option Scheme](index=74&type=section&id=22.%20Share%20Option%20Scheme) The Company's share option scheme, adopted on September 26, 2016, aims to incentivize directors, eligible employees, and consultants, with **45,440,000** outstanding options as at April 30, 2025, representing **18.5%** of issued shares - The Company's share option scheme was adopted on September 26, 2016, primarily to provide incentives to directors, eligible employees, and consultants, with a validity period of ten years[297](index=297&type=chunk) - The total number of shares involved in share options shall not exceed **10%** of the Company's issued shares, and options granted to any individual shall not exceed **1%** of the issued shares[297](index=297&type=chunk) Share Option Movement Overview | Grant Date | Outstanding as at May 1, 2024 (Thousand Options) | Lapsed during the year (Thousand Options) | Outstanding as at April 30, 2025 (Thousand Options) | | :--- | :--- | :--- | :--- | | September 30, 2020 | 4,800 | (1,600) | 3,200 | | April 8, 2021 | 19,200 | – | 19,200 | | May 12, 2022 | 23,040 | – | 23,040 | | **Total** | **47,040** | **(1,600)** | **45,440** | - As at April 30, 2025, the number of shares involved in outstanding share options granted under the scheme was **45,440,000** (2024: **47,040,000**), representing **18.5%** of the Company's issued shares on that date (2024: **19.1%**)[298](index=298&type=chunk)[143](index=143&type=chunk) [23. Company Statement of Financial Position](index=76&type=section&id=23.%20Company%20Statement%20of%20Financial%20Position) As at April 30, 2025, the Company's total assets less current liabilities and total equity amounted to **5.465 million HKD**, representing a decrease from the previous year Company Statement of Financial Position Overview | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Non-current Assets - Other receivables | 3,776 | 3,761 | | Current Assets - Prepayments and other receivables | 537 | 337 | | Current Assets - Bank balances | 2,841 | 3,171 | | Current Liabilities - Other payables | 1,689 | 1,015 | | **Total Equity** | **5,465** | **6,254** | Company Reserves Movement | Metric | Share Premium (Thousand HKD) | Share Option Reserve (Thousand HKD) | Accumulated Losses (Thousand HKD) | Total Reserves (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | May 1, 2024 | 65,244 | 13,395 | (84,705) | (6,066) | | Loss and total comprehensive expenses for the year | – | – | (789) | (789) | | Lapsed share options | – | (124) | 124 | – | | **April 30, 2025** | **65,244** | **13,271** | **(85,370)** | **(6,855)** | [24. Related Party Transactions](index=77&type=section&id=24.%20Related%20Party%20Transactions) Key management personnel (directors and senior management) emoluments constitute related party transactions, totaling **1.256 million HKD** in 2025 Key Management Personnel Emoluments | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 1,256 | 858 | | Retirement benefit scheme contributions | – | – | | **Total** | **1,256** | **858** | [25. Financial Risk Management and Fair Value Measurement](index=78&type=section&id=25.%20Financial%20Risk%20Management%20and%20Fair%20Value%20Measurement) The Group faces market risks (equity price risk, interest rate risk), credit risk, and liquidity risk in its ordinary course of business, managed through diversified investments, credit monitoring, and liquidity assessment, with detailed disclosures on financial instrument classification, credit risk assessment, and fair value hierarchy Financial Instrument Categories | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Financial assets - at fair value through profit or loss | 21,176 | 22,763 | | Financial assets - at amortized cost | 54,761 | 59,616 | | Financial liabilities - at amortized cost | 18,698 | 19,043 | - The Group is exposed to financial risks in the ordinary course of business from using financial instruments, including market risk (equity price risk and interest rate risk), credit risk, and liquidity risk[304](index=304&type=chunk)[305](index=305&type=chunk) - If the prices of each financial asset at fair value through profit or loss had increased/decreased by **5%**, loss after tax for the year ended April 30, 2025, would have decreased/increased by **885 thousand HKD** (2024: **819 thousand HKD**)[307](index=307&type=chunk) - The credit risk faced by the Group is primarily influenced by the individual characteristics of each customer; at the end of the reporting period, amounts due from the Group's largest debtor and top five debtors accounted for **39%** (2024: **33%**) and **100%** (2024: **100%**) of total trade receivables and contract assets, respectively[314](index=314&type=chunk) Movement in Lifetime Expected Credit Losses for Trade Receivables | Metric | May 1, 2023 (Thousand HKD) | Impairment Losses Recognized (Thousand HKD) | April 30, 2024 (Thousand HKD) | Transferred to Lifetime ECL (Credit Impaired) (Thousand HKD) | Impairment Losses Recognized / (Reversed) (Thousand HKD) | April 30, 2025 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Not credit impaired | 16,908 | 5,637 | 22,545 | (21,737) | 5,196 | 6,004 | | Credit impaired | 4,557 | – | 4,557 | 21,737 | (3,948) | 22,346 | | **Total** | **21,465** | **5,637** | **27,102** | **–** | **1,248** | **28,350** | Movement in Lifetime Expected Credit Losses for Contract Assets | Metric | Beginning of 2024 (Thousand HKD) | Impairment Losses Recognized (Thousand HKD) | End of 2024 (Thousand HKD) | Beginning of 2025 (Thousand HKD) | Impairment Losses Recognized (Thousand HKD) | End of 2025 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Loss allowance | 213 | 52 | 265 | 265 | 448 | 713 | Liquidity Risk - Maturity Analysis of Non-Derivative Financial Liabilities (As at April 30, 2025) | Metric | Within One Year or On Demand (Thousand HKD) | Total (Thousand HKD) | Carrying Amount (Thousand HKD) | | :--- | :--- | :--- | :--- | | Trade and other payables | 18,698 | 18,698 | 18,698 | Fair Value Hierarchy of Financial Instruments (As at April 30, 2025) | Metric | Level 1 (Thousand HKD) | Level 2 (Thousand HKD) | Level 3 (Thousand HKD) | Total (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss - equity securities listed in Hong Kong | 21,176 | – | – | 21,176 | Fair Value Hierarchy of Financial Instruments (As at April 30, 2024) | Metric | Level 1 (Thousand HKD) | Level 2 (Thousand HKD) | Level 3 (Thousand HKD) | Total (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss - convertible bonds receivable | – | – | 3,155 | 3,155 | | Financial assets at fair value through profit or loss - equity securities listed in Hong Kong | 19,608 | – | – | 19,608 | | **Total** | **19,608** | **–** | **3,155** | **22,763** | [26. Capital Management](index=85&type=section&id=26.%20Capital%20Management) The Group's capital management aims to ensure continuous operation, maintain a capital structure that minimizes funding costs, supports business, and maximizes shareholder value, regulated by adjusting dividends, issuing new shares, or repurchasing shares and raising new debt - The Group's capital management objective is to ensure its ability to continue as a going concern and to maintain a capital structure that aims to minimize the cost of capital, support its business, and maximize shareholder value[330](index=330&type=chunk) - The Group manages its capital structure by adjusting the amount of dividends paid to shareholders, issuing new shares or repurchasing existing shares, and raising new debt[330](index=330&type=chunk) [27. Retirement Benefit Scheme Contributions](index=85&type=section&id=27.%20Retirement%20Benefit%20Scheme%20Contributions) The Group operates a Mandatory Provident Fund (MPF) scheme in Hong Kong, where both employers and employees make mandatory contributions of 5% of monthly relevant income, with contributions vesting immediately - The Group operates a Mandatory Provident Fund Scheme in Hong Kong under the Mandatory Provident Fund Schemes Ordinance, where both employers and employees are required to contribute **5%** of the employee's monthly relevant income or a maximum of **HKD1,500** each[331](index=331&type=chunk) - MPF scheme contributions vest immediately, and employees are entitled to **100%** of the employer's mandatory contributions upon retirement at age 65, death, or total incapacity[331](index=331&type=chunk)[332](index=332&type=chunk) [Financial Summary](index=86&type=section&id=Financial%20Summary) This section provides a five-year overview of the Group's key financial performance metrics, including revenue, loss before tax, and total comprehensive expenses, as well as a summary of assets, liabilities, and equity Five-Year Performance Overview | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | 2023 (Thousand HKD) | 2022 (Thousand HKD) | 2021 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 40,550 | 38,132 | 97,332 | 58,344 | 137,781 | | Loss Before Tax | (5,888) | (11,409) | (31,749) | (18,834) | (11,833) | | Loss and Total Comprehensive Expenses for the Year Attributable to Owners of the Company | (5,888) | (11,409) | (31,749) | (18,778) | (11,566) | Five-Year Assets and Liabilities Overview | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | 2023 (Thousand HKD) | 2022 (Thousand HKD) | 2021 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 77,624 | 83,907 | 93,990 | 133,262 | 156,128 | | Total Liabilities | (18,725) | (19,120) | (17,794) | (32,129) | (38,559) | | Total Equity | 58,899 | 64,787 | 76,196 | 101,133 | 117,569 |

Company Information and Report Declaration This section covers the disclaimer and an overview of the interim results announcement [Disclaimer](index=1&type=section&id=Disclaimer) The Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement's content, accuracy, or completeness, and accept no liability for any losses - The HKEX and Stock Exchange are not responsible for the content, accuracy, or completeness of this announcement, and accept no liability for any losses[1](index=1&type=chunk) [Report Overview](index=1&type=section&id=Report%20Overview) Poly Property Group Co., Limited announces its unaudited condensed consolidated results for the six months ended June 30, 2025, with comparative data for the prior period and year-end - Poly Property Group Co., Limited has released its unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) Condensed Consolidated Financial Statements This section presents the company's condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company reported significant revenue growth, but profit for the period and profit attributable to owners decreased, leading to lower earnings per share Key Data from Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Indicator | 2025 (Thousands of RMB) | 2024 (Thousands of RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 18,444,209 | 12,456,641 | +48.1% | | Gross Profit | 3,219,504 | 1,775,918 | +81.3% | | Profit Before Income Tax Expense | 1,375,975 | 579,360 | +137.5% | | Profit for the Period | 232,482 | 248,642 | -6.5% | | Profit Attributable to Owners of the Company | 207,865 | 373,227 | -44.3% | | Earnings Per Share (Basic and Diluted) | 5.44 cents | 9.77 cents | -44.3% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income for the period significantly decreased, primarily due to exchange differences from translating functional currency to presentation currency Key Data from Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (Thousands of RMB) | 2024 (Thousands of RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 232,482 | 248,642 | -6.5% | | Exchange differences arising from translating functional currency to presentation currency | (169,377) | (866) | -19469.1% | | Other comprehensive income for the period, net of tax | (157,425) | 21,098 | -846.2% | | Total comprehensive income for the period | 75,057 | 269,740 | -72.2% | | Total comprehensive income attributable to owners of the Company | 51,973 | 396,750 | -86.9% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total non-current assets increased, while total current assets and liabilities decreased, resulting in a slight reduction in net current assets and total assets less current liabilities Key Data from Condensed Consolidated Statement of Financial Position (As at June 30) | Indicator | June 30, 2025 (Thousands of RMB) | December 31, 2024 (Thousands of RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 20,473,081 | 19,739,400 | +3.7% | | Total Current Assets | 173,029,502 | 178,963,377 | -3.3% | | Total Current Liabilities | 94,638,168 | 99,641,533 | -5.0% | | Net Current Assets | 78,391,334 | 79,321,844 | -1.2% | | Equity Attributable to Owners of the Company | 34,187,501 | 34,209,353 | -0.1% | | Total Equity | 46,580,256 | 46,547,310 | +0.1% | Notes to the Condensed Consolidated Financial Statements This section details the basis of preparation, significant accounting policies, and other explanatory notes to the condensed consolidated financial statements [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules, maintaining consistent accounting policies with the prior year, with HKFRS 18 expected to impact future profit or loss presentation - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the HKEX Listing Rules[9](index=9&type=chunk) - The Group has initially adopted HKAS 21 (Amendments) — The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability, which did not have a material impact on accounting policies[11](index=11&type=chunk) - HKFRS 18 — Presentation and Disclosure in Financial Statements, which will replace HKAS 1, is expected to impact the presentation and disclosure of the statement of profit or loss in future financial statements[15](index=15&type=chunk) [Revenue and Segment Information](index=9&type=section&id=Revenue%20and%20Segment%20Information) The Group operates four segments: property development, property investment and management, hotel operations, and other operations, with property development being the primary source of revenue and profit in H1 2025 - The Group's principal operating segments include property development, property investment and management, hotel operations, and other operations[16](index=16&type=chunk)[17](index=17&type=chunk) [Segment Results for the Six Months Ended June 30, 2025](index=10&type=section&id=Segment%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) In H1 2025, property development contributed the majority of revenue and segment results, while hotel operations continued to incur losses Segment Revenue and Results for the Six Months Ended June 30, 2025 | Segment | Revenue (Thousands of RMB) | Segment Results (Thousands of RMB) | | :--- | :--- | :--- | | Property Development | 17,458,481 | 1,690,693 | | Property Investment and Management | 860,633 | 143,069 | | Hotel Operations | 114,312 | (30,548) | | Other Operations | 10,783 | 13,332 | | **Total** | **18,444,209** | **1,816,546** | [Segment Assets and Liabilities as at June 30, 2025](index=11&type=section&id=Segment%20Assets%20and%20Liabilities%20as%20at%20June%2030%2C%202025) As of June 30, 2025, the property development segment dominated both segment assets and liabilities Segment Assets and Liabilities as at June 30, 2025 | Segment | Segment Assets (Thousands of RMB) | Segment Liabilities (Thousands of RMB) | | :--- | :--- | :--- | | Property Development | 142,119,497 | 67,642,797 | | Property Investment and Management | 9,392,191 | 1,361,609 | | Hotel Operations | 3,002,832 | 68,939 | | Other Operations | 928,285 | 6,762 | | **Total** | **155,442,805** | **69,080,107** | [Segment Results for the Six Months Ended June 30, 2024](index=12&type=section&id=Segment%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202024) In H1 2024, property development was also the main source of revenue and profit, with hotel operation losses narrower than in H1 2025 Segment Revenue and Results for the Six Months Ended June 30, 2024 | Segment | Revenue (Thousands of RMB) | Segment Results (Thousands of RMB) | | :--- | :--- | :--- | | Property Development | 11,416,234 | 789,375 | | Property Investment and Management | 840,472 | 108,927 | | Hotel Operations | 177,000 | (2,474) | | Other Operations | 22,935 | 34,238 | | **Total** | **12,456,641** | **930,066** | [Segment Assets and Liabilities as at December 31, 2024](index=13&type=section&id=Segment%20Assets%20and%20Liabilities%20as%20at%20December%2031%2C%202024) As of December 31, 2024, the property development segment continued to hold the dominant share of segment assets and liabilities, consistent with the H1 2025 trend Segment Assets and Liabilities as at December 31, 2024 | Segment | Segment Assets (Thousands of RMB) | Segment Liabilities (Thousands of RMB) | | :--- | :--- | :--- | | Property Development | 141,335,678 | 70,569,736 | | Property Investment and Management | 9,200,916 | 1,333,672 | | Hotel Operations | 3,035,869 | 64,321 | | Other Operations | 937,823 | 8,985 | | **Total** | **154,510,286** | **71,976,714** | [Profit Before Income Tax Expense](index=13&type=section&id=Profit%20Before%20Income%20Tax%20Expense) For the six months ended June 30, 2025, profit before income tax expense significantly increased, primarily impacted by depreciation and a shift from profit to loss in shares of associates and joint ventures Key Adjustments to Profit Before Income Tax Expense (Six Months Ended June 30) | Item | 2025 (Thousands of RMB) | 2024 (Thousands of RMB) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 72,062 | 79,429 | | Depreciation of right-of-use assets | 16,595 | 24,357 | | Share of results of associates | (45,962) | 98,279 | | Share of results of joint ventures | (49,093) | 5,435 | | Loss on disposal of investment properties | – | 18,869 | [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense significantly increased, primarily driven by higher PRC corporate income tax and land appreciation tax, while Hong Kong profits tax rates remained stable Composition of Income Tax Expense (Six Months Ended June 30) | Tax Type | 2025 (Thousands of RMB) | 2024 (Thousands of RMB) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 262 | 20,468 | | PRC Corporate Income Tax | 559,396 | 209,855 | | PRC Land Appreciation Tax | 594,395 | 100,683 | | Deferred Tax | (10,560) | (288) | | **Total Income Tax Expense** | **1,143,493** | **330,718** | - PRC Corporate Income Tax is calculated at a **25%** tax rate, and Land Appreciation Tax is levied at progressive rates ranging from **30% to 60%**[23](index=23&type=chunk) [Dividends](index=14&type=section&id=Dividends) 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 did not declare an interim dividend for the six months ended June 30, 2025[24](index=24&type=chunk) [Earnings Per Share](index=15&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share decreased to 5.44 RMB cents, primarily due to a reduction in profit attributable to owners and no potential dilutive ordinary shares Earnings Per Share Calculation Data (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (Thousands of RMB) | 207,865 | 373,227 | | Weighted average number of ordinary shares | 3,821,183,118 | 3,821,183,118 | | Basic and Diluted Earnings Per Share (RMB cents) | 5.44 | 9.77 | - Diluted earnings per share for H1 2025 and 2024 were the same as basic earnings per share, as there were no potential dilutive ordinary shares[26](index=26&type=chunk) [Deposits Paid for Acquisition of a Subsidiary](index=15&type=section&id=Deposits%20Paid%20for%20Acquisition%20of%20a%20Subsidiary) As of June 30, 2025, the Group had paid a deposit for the acquisition of a 51% equity interest in a company, with the acquisition yet to be completed - As of June 30, 2025, the Group had paid a deposit for the acquisition of a **51%** equity interest in a company, which has not yet been completed[27](index=27&type=chunk) [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables increased to RMB 6,301,673 thousands, with a significant rise in trade receivables over 90 days, indicating extended collection cycles for some amounts Ageing Analysis of Trade and Other Receivables (As at June 30) | Ageing | June 30, 2025 (Thousands of RMB) | December 31, 2024 (Thousands of RMB) | | :--- | :--- | :--- | | 0 to 30 days | 42,196 | 187,892 | | 31 to 90 days | 30,694 | 16,133 | | Over 90 days | 457,398 | 247,019 | | **Total Trade Receivables** | **530,288** | **451,044** | | Other Receivables | 5,771,385 | 5,026,651 | | **Total** | **6,301,673** | **5,477,695** | - The Group provides an average credit period ranging from **30 to 90 days** to its trade customers and has no concentrated credit risk[28](index=28&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables slightly decreased, with payables over 90 days still constituting the majority but showing a reduction in amount Ageing Analysis of Trade and Other Payables (As at June 30) | Ageing | June 30, 2025 (Thousands of RMB) | December 31, 2024 (Thousands of RMB) | | :--- | :--- | :--- | | 0 to 30 days | 654,422 | 1,827,262 | | 31 to 90 days | 765,536 | 290,931 | | Over 90 days | 13,742,545 | 14,441,805 | | **Total Trade Payables** | **15,162,503** | **16,559,998** | | Other Payables | 7,269,489 | 7,567,771 | | **Total** | **22,431,992** | **24,127,769** | [Share Capital](index=16&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid ordinary share capital remained unchanged from December 31, 2024 Share Capital Information (As at June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of ordinary shares (shares) | 3,821,183,118 | 3,821,183,118 | | Amount (Thousands of RMB) | 15,712,159 | 15,712,159 | [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the maximum guarantee amount for mortgage loans to property buyers and the total credit facility guarantees for associates and joint ventures both decreased Key Contingent Liabilities Data (As at June 30) | Type of Guarantee | June 30, 2025 (Thousands of RMB) | December 31, 2024 (Thousands of RMB) | | :--- | :--- | :--- | | Maximum guarantee for mortgage loans to property buyers | 17,824,863 | 23,496,301 | | Credit facility guarantees for associates/joint ventures | 6,428,812 | 6,494,874 | | Utilized guarantees for associates/joint ventures | 2,409,584 | 3,547,951 | - The Directors believe that the fair value of the relevant properties is sufficient to cover the outstanding mortgage loans guaranteed by the Group[31](index=31&type=chunk) [Capital Commitments](index=16&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital expenditure for property development increased, with no authorized but uncontracted capital expenditure Capital Commitments (As at June 30) | Item | June 30, 2025 (Thousands of RMB) | December 31, 2024 (Thousands of RMB) | | :--- | :--- | :--- | | Contracted but unprovided capital expenditure for property development | 12,259,778 | 10,004,894 | | Authorized but uncontracted capital expenditure | 0 | 0 | Business Review This section provides an overview of the Group's financial performance, macroeconomic and real estate market conditions, property sales, new projects, land bank, and property management operations [Financial Highlights](index=17&type=section&id=Financial%20Highlights) In H1 2025, the Group's revenue grew by 48.1% year-on-year, but profit attributable to shareholders and basic and diluted earnings per share decreased by 44.3%, while shareholders' equity and net asset value per share remained stable Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 18.44 billion | 12.46 billion | +48.1% | | Profit Attributable to Shareholders | 208 million | 373 million | -44.3% | | Basic and Diluted Earnings Per Share | 5.44 cents | 9.77 cents | -44.3% | | Shareholders' Equity (As at June 30/December 31) | 34.19 billion | 34.21 billion | -0.1% | | Net Asset Value Per Share (As at June 30/December 31) | 8.95 | 8.95 | 0.0% | [Macroeconomic and Real Estate Market Overview](index=17&type=section&id=Macroeconomic%20and%20Real%20Estate%20Market%20Overview) In H1 2025, China's GDP grew by 5.3%, with the real estate market stabilizing under policy support, showing narrowed sales declines and reduced unsold inventory, while land markets saw quality-focused acquisitions - China's GDP grew by **5.3%** year-on-year in the first half, with the national economy maintaining a stable and positive trend[34](index=34&type=chunk) - National new commercial housing sales decreased by **5.5%** in the first half, with the decline significantly narrowing and market transaction volume improving[34](index=34&type=chunk) - The land market showed a trend of reduced volume and improved quality, with property developers actively expanding in first-tier and core second-tier cities, and land auction premium rates rebounding[35](index=35&type=chunk) - The Group's average financing cost decreased by **48 basis points** from the end of last year to **2.90%**, and it successfully issued **RMB 4 billion** in corporate bonds[36](index=36&type=chunk) [Property Sales](index=18&type=section&id=Property%20Sales) In H1 2025, the Group's contracted sales decreased by 6% to RMB 26.7 billion, but the average selling price increased by 9% to RMB 27,763/sqm, with the Yangtze River Delta and Greater Bay Area accounting for 76% of sales Key Contracted Sales Data for the Six Months Ended June 30, 2025 | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales Amount | 26.7 billion | 28.4 billion (estimated) | -6% | | Contracted Sales Area | 0.961 million sqm | - | - | | Average Contracted Selling Price | 27,763 RMB/sqm | 25,470 RMB/sqm (estimated) | +9% | - The Group ranked **15th** in the CRIC all-caliber sales list, an improvement of **2 places** from the end of last year[34](index=34&type=chunk) - Sales in the Yangtze River Delta and Greater Bay Area further increased to **76%** of total sales[34](index=34&type=chunk) [Contracted Sales by Region for the Six Months Ended June 30, 2025](index=19&type=section&id=Contracted%20Sales%20by%20Region%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) In H1 2025, the Yangtze River Delta region contributed 55% of contracted sales, followed by the Pearl River Delta at 15% and Hong Kong at 6% Contracted Sales Amount by Region for the Six Months Ended June 30, 2025 | Region | Contracted Sales Amount (Millions of RMB) | Share (%) | | :--- | :--- | :--- | | Yangtze River Delta Region | 14,605 | 55% | | Pearl River Delta Region | 3,991 | 15% | | Southwest Region | 1,556 | 6% | | Other Regions | 4,868 | 18% | | Hong Kong Region | 1,648 | 6% | | **Total** | **26,668** | **100%** | [Future Project Launch Plan](index=20&type=section&id=Future%20Project%20Launch%20Plan) In H2 2025, the Group plans to launch nine new property projects, primarily in high-tier cities such as Shanghai, Hangzhou, Guangzhou, Shenzhen, Jinan, and Weihai - Nine new property projects are planned for launch in H2 2025, including projects in Shanghai Yangpu, Hangzhou Xihu District, Guangzhou Liwan, and Shenzhen Bao'an[39](index=39&type=chunk) [New Projects Commenced](index=20&type=section&id=New%20Projects%20Commenced) In H1 2025, the Group commenced construction on 6 new projects, totaling approximately 511,000 square meters of new gross floor area, with 3 being first-time commencements New Projects Commenced in the Six Months Ended June 30, 2025 | Project | New GFA Commenced (Thousands of sqm) | Group's Attributable Interest (%) | | :--- | :--- | :--- | | Shanghai Poly Hai Shang Yin | 85 | 100% | | Guangzhou Poly Xi Yue Wan | 48 | 75% | | Guangzhou Liwan Project | 195 | 100% | | Shenzhen Bao'an Project | 80 | 100% | | Guiyang Poly Park 2010 | 32 | 100% | | Wuhan Poly City | 71 | 68% | | **Total** | **511** | - | [Projects Carried Forward](index=21&type=section&id=Projects%20Carried%20Forward) In H1 2025, the Group carried forward approximately RMB 17.37 billion in sales and 814,000 square meters in area, with the Pearl River Delta region contributing the largest share of carried forward sales at 43% Carried Forward Sales Amount by Region for the Six Months Ended June 30, 2025 | Region | Carried Forward Amount (Millions of RMB) | Share (%) | | :--- | :--- | :--- | | Yangtze River Delta Region | 4,004 | 23% | | Pearl River Delta Region | 7,513 | 43% | | Southwest Region | 1,860 | 11% | | Other Regions | 3,353 | 19% | | Hong Kong Region | 637 | 4% | | **Total** | **17,367** | **100%** | - Ningbo Poly Lang Yue Xu Zhang, Shenzhen Poly Yong Shan Jun, Shenzhen Poly Long Yu, and Shenzhen Poly Ming Yue Lan An Garden were the main projects carried forward[42](index=42&type=chunk) [Land Bank and New Acquisitions](index=23&type=section&id=Land%20Bank%20and%20New%20Acquisitions) In H1 2025, the Group acquired 9 new property development projects, adding approximately 1.183 million square meters to its land bank with a 74% equity interest, primarily investing in high-tier cities like Shanghai, Hangzhou, and Guangzhou - A total of **9** property development projects were acquired in the first half, adding approximately **1.183 million square meters** to the land bank, with an attributable interest of **74%**[35](index=35&type=chunk)[44](index=44&type=chunk) - Based on total land cost, investments in Shanghai, Hangzhou, and Guangzhou accounted for **88%** of the total[35](index=35&type=chunk) Overview of New Projects Acquired in the Six Months Ended June 30, 2025 | Project | Planned Total GFA (Thousands of sqm) | Group's Attributable Interest (%) | | :--- | :--- | :--- | | Guangzhou Liwan Project | 253 | 100% | | Hangzhou Xihu District Project | 68 | 100% | | Jinan Lixia District A1 Project | 168 | 40% | | Shanghai Yangpu Project | 88 | 100% | | Hangzhou Xiyuan 7th Road Project | 116 | 100% | | Weihai Huancui Project | 120 | 70% | | Shanghai Jing'an Project | 124 | 51% | | Jinan Tianqiao Project | 120 | 40% | | Hangzhou Xiaoshan Project | 126 | 25% | | **Total** | **1,183** | - | [Details of New Projects](index=23&type=section&id=Details%20of%20New%20Projects) New projects are strategically located in prime areas with excellent transportation and amenities, primarily planned as high-rise residential communities to meet local housing demands - The Guangzhou Liwan project is located in the Baietan core business district, offering convenient transportation and excellent commercial and educational facilities, planned for high-rise residential development[46](index=46&type=chunk) - Both the Hangzhou Xihu District project and Hangzhou Xiyuan 7th Road project are located in the western part of the Sandun area, leveraging the university town and industrial parks, with rich surrounding educational resources, planned for high-rise residential development[47](index=47&type=chunk)[50](index=50&type=chunk) - The Shanghai Yangpu project is situated in the inner-middle ring East Bund area, close to Lujiazui and Yangpu Riverside, with convenient transportation and comprehensive amenities, planned for high-rise residential development[49](index=49&type=chunk) [Investment Properties and Hotels](index=26&type=section&id=Investment%20Properties%20and%20Hotels) The Group holds a portfolio of investment properties and hotels in first and second-tier cities, with a total gross floor area of approximately 681,000 square meters and an asset value of approximately RMB 8.65 billion Overview of Major Investment Properties and Hotels | Region | Major Investment Properties and Hotels | GFA Held (Thousands of sqm) | Group's Attributable Interest (%) | Property Type | | :--- | :--- | :--- | :--- | :--- | | Beijing | Beijing Poly Plaza | 15 | 75% | Office Building | | Shanghai | Shanghai Poly Plaza (part) | 30 | 100% | Office Building and Commercial | | Shenzhen | Shenzhen Poly Culture Plaza (part) | 135 | 100% | Commercial | | Beijing | Beijing Poly Plaza Hotel | 63 | 75% | Hotel | | Shanghai | Hyatt Regency Shanghai Jiading | 69 | 100% | Hotel | [Property Management](index=26&type=section&id=Property%20Management) In H1 2025, the Group's property management company achieved revenue of RMB 625 million, a 6.7% year-on-year increase, with managed gross floor area reaching 54.09 million square meters, up 7.0% Key Property Management Business Data (Six Months Ended June 30, 2025) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 625 million | 586 million (estimated) | +6.7% | | Managed Property Projects | 318 | - | - | | Managed GFA | 54.09 million sqm | 50.55 million sqm (estimated) | +7.0% | - Property management business covers various types of properties including residential, commercial, office buildings, hotels, and theaters[57](index=57&type=chunk) Liquidity and Capital Structure This section analyzes the Group's shareholders' equity, gearing ratio, borrowing structure, financing costs, liquidity, foreign exchange risk management, pledged assets, and contingent liabilities [Shareholders' Equity and Gearing Ratio](index=27&type=section&id=Shareholders%27%20Equity%20and%20Gearing%20Ratio) As of June 30, 2025, total equity attributable to owners was RMB 34.19 billion, with net asset value per share at RMB 8.95, and the gearing ratio slightly decreased to 75.9% Shareholders' Equity and Gearing Ratio (As at June 30) | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Shareholders | 34,187,501,000 | 34,209,353,000 | -0.1% | | Net Asset Value Per Share | 8.95 | 8.95 | 0.0% | | Gearing Ratio | 75.9% | 76.6% | -0.7 percentage points | [Borrowing Structure and Financing Costs](index=27&type=section&id=Borrowing%20Structure%20and%20Financing%20Costs) As of June 30, 2025, the Group's total outstanding bank and other borrowings amounted to RMB 68.20 billion, primarily denominated in RMB, with 44% at fixed rates and 56% at floating rates, and average financing costs decreased to 2.90% Borrowing Structure (As at June 30) | Category | Amount (Thousands of RMB) | Share (%) | | :--- | :--- | :--- | | **Total Outstanding Bank and Other Borrowings** | **68,203,639** | **100%** | | **By Maturity:** | | | | Repayable within one year | 17,483,131 | 25.6% | | Repayable after one year but within two years | 17,067,474 | 25.0% | | Repayable after two years but within five years | 25,032,652 | 36.7% | | Repayable after five years | 8,620,382 | 12.7% | | **By Currency:** | | | | RMB | 61,105,639 | 90% | | USD | 3,549,000 | 5% | | HKD | 3,549,000 | 5% | | **By Interest Rate:** | | | | Fixed Rate | - | 44% | | Floating Rate | - | 56% | - The Group's average financing cost decreased by **48 basis points** from the end of last year to **2.90%**[36](index=36&type=chunk) [Liquidity and Foreign Exchange Risk](index=27&type=section&id=Liquidity%20and%20Foreign%20Exchange%20Risk) As of June 30, 2025, the Group's net current assets and total bank balances decreased, but it maintains sufficient resources for working capital needs through available bank facilities and operating cash flows, managing foreign exchange risk by balancing currency assets and liabilities Key Liquidity Data (As at June 30) | Indicator | June 30, 2025 (Thousands of RMB) | December 31, 2024 (Thousands of RMB) | | :--- | :--- | :--- | | Net Current Assets | 78,391,334 | 79,321,844 | | Total Bank Balances | 28,468,404 | 34,671,647 | - The Group minimizes foreign exchange risk by balancing monetary assets and liabilities, as well as foreign currency income and expenses[60](index=60&type=chunk) [Pledged Assets](index=28&type=section&id=Pledged%20Assets) As of June 30, 2025, the total carrying value of assets pledged as collateral for credit facilities decreased to RMB 29.00 billion, mainly due to a reduction in pledged properties under development Carrying Value of Pledged Assets (As at June 30) | Asset Type | June 30, 2025 (Thousands of RMB) | December 31, 2024 (Thousands of RMB) | | :--- | :--- | :--- | | Investment Properties | 6,433,509 | 5,530,726 | | Hotel Properties | 1,576,000 | 1,605,000 | | Properties Under Development | 18,346,879 | 23,421,673 | | Properties Held for Sale | 2,152,607 | 1,118,818 | | Bank Deposits | 163,696 | 164,147 | | **Total** | **29,004,455** | **32,166,014** | - The Group's interests in certain subsidiaries are also pledged as collateral for credit facilities[61](index=61&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group's maximum guarantee for property buyer mortgage loans was RMB 17.83 billion, and utilized credit facility guarantees for associates and joint ventures were RMB 2.41 billion, both decreasing from year-end 2024 Contingent Liabilities (As at June 30) | Type of Guarantee | June 30, 2025 (Thousands of RMB) | December 31, 2024 (Thousands of RMB) | | :--- | :--- | :--- | | Maximum guarantee for mortgage loans to property buyers | 17,824,863 | 23,496,301 | | Utilized credit facility guarantees for associates/joint ventures | 2,409,584 | 3,547,951 | - The Directors believe that the fair value of the relevant properties is sufficient to cover the outstanding mortgage loans guaranteed by the Group[62](index=62&type=chunk) Other Information This section provides details on the Group's employees, share option scheme, securities transactions, corporate governance, post-reporting period events, and publication of interim results [Employees](index=29&type=section&id=Employees) As of June 30, 2025, the Group had 6,437 employees, an increase from the prior year, with total remuneration for the period approximately RMB 379.11 million, and the company provides diverse benefits and training Employee Information (As at June 30) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 6,437 | 6,124 | | Remuneration for the Period (RMB) | 379,110,000 | - | - The Group provides employees with benefits such as year-end double pay, discretionary bonuses, provident funds, and medical insurance, along with on-the-job training[63](index=63&type=chunk) [Share Option Scheme](index=29&type=section&id=Share%20Option%20Scheme) The company's share option scheme adopted in 2014 expired on May 27, 2024, and no new share option scheme was adopted for the six months ended June 30, 2025 - The Company's share option scheme expired on May 27, 2024[64](index=64&type=chunk) - For the six months ended June 30, 2025, the Company did not adopt any share option scheme[65](index=65&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[66](index=66&type=chunk) [Corporate Governance](index=29&type=section&id=Corporate%20Governance) The company consistently complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers during the review period, ensuring robust corporate governance practices - The Company has complied with the Corporate Governance Code set out in Appendix C1 to the Listing Rules throughout the review period[67](index=67&type=chunk) - All Directors confirmed that they have complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules for the six months ended June 30, 2025[68](index=68&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, comprising three non-executive and four independent non-executive directors, reviewed the Group's accounting principles, internal controls, risk management, and financial reporting, approving the unaudited interim financial statements - The Audit Committee has reviewed the Group's accounting principles, internal controls, risk management, and financial reporting matters[70](index=70&type=chunk) - The Audit Committee has approved the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[70](index=70&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) From June 30, 2025, to the date of this announcement, the Group has not experienced any significant post-reporting period events with material impact - As of the date of this announcement, the Group has no significant events after the reporting period[71](index=71&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=30&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is published on the company's and HKEX websites, with the 2025 interim report available for review in September 2025 - This interim results announcement has been published on the Company's website and the website of Hong Kong Exchanges and Clearing Limited[72](index=72&type=chunk) - The 2025 interim report will be available for viewing on the Company's and HKEX websites and dispatched to shareholders in September 2025[72](index=72&type=chunk) [Board of Directors](index=30&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises executive, non-executive, and independent non-executive directors, including Mr. Wan Yuqing, Mr. Hu Zaixin, Mr. Zhang Yi, Mr. Gong Jian, Mr. Deng Huan, Mr. Fung Chi Kin, Ms. Leung Sau Fun, Mr. Wong Ka Lun, and Mr. Wu Jianlin - The Board of Directors includes executive directors, non-executive directors, and independent non-executive directors[73](index=73&type=chunk)[74](index=74&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Sihuan Pharmaceutical Holdings Group Ltd. 四環醫藥控股集團有限公司 （於百慕達註冊成立的有限公司） （股份代號：0460） 截至二零二五年六月三十日止六個月 中期業績公告 四 環 醫 藥 控 股 集 團 有 限 公 司（「四環醫藥」或「本公司」）董 事（「董 事」）會（「董事會」） 欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月（「期 內」）的 未 經 審 核 綜 合 業 績 連 同 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 的 比 較 數 字。該 中 期 簡 明 綜 合 財 務 資 料 已 經 由 本 公 司 的 外 部 核 數 師 安 永 會 計師事務所根據國際審計和核證準則委員會頒佈的國際審閱業 ...

2025 2025 中期 報告 INTERIM REPORT 目 錄 | | 頁次 | | --- | --- | | 公司資料 | 2 | | 簡明綜合中期損益表 | 3 | | 簡明綜合中期損益及其他全面收入表 | 4 | | 簡明綜合中期財務狀況表 | 5 | | 簡明綜合中期權益變動表 | 6 | | 簡明綜合中期現金流量表 | 7 | | 簡明綜合中期財務報表附註 | 8 | | 管理層討論及分析 | 17 | | 企業管治及其他資料 | 20 | 公司資料 董事會 執行董事 宋啟慶先生 （主席兼首席執行官） 張港璋先生 獨立非執行董事 江興琪先生 馮建中先生 梁婉雯女士 審核委員會 江興琪先生 （主席） 馮建中先生 梁婉雯女士 核數師 薪酬委員會 梁婉雯女士 （主席） 馮建中先生 江興琪先生 提名委員會 馮建中先生 （主席） 宋啟慶先生 張港璋先生 江興琪先生 梁婉雯女士 公司秘書 黃杰偉先生，FHKICPA, FCIS 授權代表 宋啟慶先生 黃杰偉先生 主要往來銀行 中國銀行（香港）有限公司 中國建設銀行股份有限公司 深圳農村商業銀行 總辦事處及香港主要營業地點 香港 新界沙田安耀街3號 匯達大 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 GUSHENGTANG HOLDINGS LIMITED 固 生 堂 控 股 有 限 公 司 （根據開曼群島法律註冊成立的有限公司） （股份代號：2273） 中期業績公告 截至2025年6月30日止六個月 財務摘要 本集團的收入由截至2024年6月30日止六個月的人民幣1,365.0百萬元增加9.5% 至截至2025年6月30日止六個月的人民幣1,494.9百萬元。 董事會欣然公佈本集團截至2025年6月30日止六個月的未經審核綜合中期業績， 連同於2024年同期的比較數字載列如下。 未經審核中期簡明綜合損益及其他全面收益表 截至2025年6月30日止六個月 | | 附註 | 2025年 | 2024年 | | --- | --- | --- | --- | | | | 人民幣千元 | 人民幣千元 | | | | （未經審核）（未經審核） | | | 收入 | 4 | 1,494,891 | 1,364 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Interim Results Overview](index=1&type=section&id=Interim%20Results%20Overview) For the six months ended June 30, 2025, the company's revenue increased by 3.7% to RMB 676.7 million, but gross profit decreased by 3.4% to RMB 497.8 million, with net profit significantly impacted by non-recurring items - The Board does not recommend paying any interim dividend for the six months ended June 30, 2025 (2024: nil)[3](index=3&type=chunk) - Changes in non-recurring items, including a decrease in other gains from financial assets at fair value through profit or loss from approximately **RMB 32.9 million** in 2024 to **RMB 9.9 million** in 2025, and a significant increase in share-based payment expenses from approximately **RMB 61.3 million** to **RMB 193.5 million**, were the primary reasons for the substantial decrease in net profit[4](index=4&type=chunk) Key Financial Indicators for the Six Months Ended June 30 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 676.7 | 652.8 | +3.7% | | Gross Profit | 497.8 | 515.4 | -3.4% | | Profit attributable to owners of the company (excluding non-recurring items) | 238.5 | 233.6 | +2.1% | | Profit attributable to owners of the company (including non-recurring items) | 55.1 | 205.6 | -73.2% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, group revenue increased to RMB 676.7 million, but gross profit declined due to higher cost of sales, with operating and period profit significantly reduced by increased expenses and share-based payments - Other comprehensive income (expense) shifted from a loss of **RMB 93,205 thousand** in 2024 to a gain of **RMB 25,697 thousand** in 2025, primarily due to fair value gains on equity instruments at fair value through other comprehensive income and exchange differences[6](index=6&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 676,707 | 652,831 | +3.7% | | Cost of Sales | (178,952) | (137,447) | +30.2% | | Gross Profit | 497,755 | 515,384 | -3.4% | | Operating Profit | 64,387 | 202,006 | -68.1% | | Profit Before Tax | 79,800 | 208,645 | -61.8% | | Profit for the Period | 41,765 | 185,808 | -77.5% | | Profit attributable to owners of the company for the period | 55,074 | 205,557 | -73.2% | | Basic Earnings Per Share | RMB 1.3 cents | RMB 4.6 cents | -71.7% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's total assets less current liabilities increased to RMB 4,340.4 million, and net assets rose to RMB 3,737.0 million, driven by significant increases in non-current and current financial assets and trade receivables, alongside higher current liabilities - Among non-current assets, interests in associates significantly increased from **RMB 72,692 thousand** to **RMB 210,118 thousand**, and financial assets at fair value through profit or loss rose from **RMB 252,149 thousand** to **RMB 262,018 thousand**[7](index=7&type=chunk) - Within current liabilities, trade and other payables increased from **RMB 758,212 thousand** to **RMB 841,265 thousand**, and contract liabilities significantly rose from **RMB 21,435 thousand** to **RMB 95,515 thousand**[7](index=7&type=chunk) Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 2,760,395 | 2,566,205 | +7.6% | | Total Current Assets | 2,573,290 | 2,334,173 | +10.2% | | Total Current Liabilities | 993,262 | 815,638 | +21.8% | | Net Current Assets | 1,580,028 | 1,518,535 | +4.1% | | Total Assets Less Current Liabilities | 4,340,423 | 4,084,740 | +6.3% | | Net Assets | 3,736,950 | 3,475,429 | +7.5% | | Equity attributable to owners of the company | 3,770,199 | 3,494,507 | +7.9% | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the preparation basis, significant accounting policies, segment information, and specific financial line items within the condensed consolidated financial statements [1. General Information](index=5&type=section&id=1.%20General%20Information) LifeTech Scientific Corporation, incorporated in the Cayman Islands and listed on the HKEX, primarily develops, manufactures, and trades advanced interventional medical devices for cardiovascular and peripheral vascular diseases, with financial statements presented in RMB - The Group's principal activities involve the development, manufacture, and trading of advanced interventional medical devices for cardiovascular and peripheral vascular diseases and disorders[9](index=9&type=chunk) - The condensed consolidated financial statements are presented in RMB, the functional currency of the Company and its principal operating subsidiaries[10](index=10&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The Group's unaudited condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and applicable disclosure requirements of the HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' issued by the IASB and the applicable disclosure requirements of Appendix D2 to the Listing Rules[11](index=11&type=chunk) [3. Significant Accounting Policies](index=5&type=section&id=3.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are primarily prepared under the historical cost convention, consistent with the annual financial statements for the year ended December 31, 2024, with no significant impact from new IFRS interpretations or amendments applied this period - The condensed consolidated financial statements are prepared on the historical cost basis, except for certain financial instruments measured at fair value[12](index=12&type=chunk) - The application of new interpretations and amendments to IFRS during the interim period had no significant impact on the amounts presented and/or disclosures in the condensed consolidated financial statements[12](index=12&type=chunk) [4. Segment Information](index=6&type=section&id=4.%20Segment%20Information) The Group reports data across three business segments: structural heart disease, peripheral vascular disease, and pacing and electrophysiology, with peripheral vascular disease being the largest contributor to revenue and segment profit, and pacing and electrophysiology showing significant revenue growth - The Group's operating segments include structural heart disease business, peripheral vascular disease business, and pacing and electrophysiology business, all involving the trading, manufacturing, and research and development of related devices[14](index=14&type=chunk)[16](index=16&type=chunk) [(A) Segment Revenue and Results](index=6&type=section&id=%28A%29%20Segment%20Revenue%20and%20Results) For the six months ended June 30, 2025, peripheral vascular disease business contributed the largest revenue of RMB 391.7 million, structural heart disease revenue remained stable at RMB 271.5 million, and pacing and electrophysiology revenue significantly grew to RMB 13.5 million, with total segment profit at RMB 497.8 million - Revenue from the pacing and electrophysiology business significantly increased from **RMB 856 thousand** in 2024 to **RMB 13,475 thousand** in 2025, achieving a turnaround to profitability[15](index=15&type=chunk)[17](index=17&type=chunk) Revenue and Results by Operating and Reportable Segment (For the six months ended June 30) | Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | 2025 Segment Profit (RMB thousand) | 2024 Segment Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Structural Heart Disease Business | 271,539 | 271,250 | 237,686 | 243,166 | | Peripheral Vascular Disease Business | 391,693 | 380,725 | 258,214 | 285,320 | | Pacing and Electrophysiology Business | 13,475 | 856 | 1,855 | (13,102) | | **Total** | **676,707** | **652,831** | **497,755** | **515,384** | [(B) Segment Assets and Liabilities](index=8&type=section&id=%28B%29%20Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total segment assets were RMB 1,929.9 million, with peripheral vascular disease business holding the largest asset base, and total segment liabilities were RMB 449.5 million, also higher for peripheral vascular disease, while unallocated assets and liabilities include interests in associates, financial assets, and cash - Total consolidated assets amounted to **RMB 5,333,685 thousand**, and total consolidated liabilities were **RMB 1,596,735 thousand**[18](index=18&type=chunk)[19](index=19&type=chunk) Assets and Liabilities by Operating and Reportable Segment (As of June 30) | Segment | 2025 Assets (RMB thousand) | 2024 Assets (RMB thousand) | 2025 Liabilities (RMB thousand) | 2024 Liabilities (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Structural Heart Disease Business | 768,334 | 688,026 | 172,333 | 127,440 | | Peripheral Vascular Disease Business | 1,108,398 | 979,544 | 248,607 | 181,439 | | Pacing and Electrophysiology Business | 53,239 | 70,595 | 28,525 | 22,733 | | **Total Segment** | **1,929,971** | **1,738,165** | **449,465** | **331,612** | [5. Other Income, Expenses, Gains and Losses](index=10&type=section&id=5.%20Other%20Income%2C%20Expenses%2C%20Gains%20and%20Losses) For the six months ended June 30, 2025, total other income, expenses, gains, and losses slightly increased to RMB 50.4 million, with stable government grants and investment property rental income, but a shift in fair value changes for mixed funds from loss to gain, and for equity funds from gain to loss, alongside a significant increase in net exchange gains - Fair value change of mixed funds shifted from a loss of **RMB 18,243 thousand** in 2024 to a gain of **RMB 13,996 thousand** in 2025[20](index=20&type=chunk) - Fair value change of equity funds shifted from a gain of **RMB 50,163 thousand** in 2024 to a loss of **RMB 3,260 thousand** in 2025[20](index=20&type=chunk) Other Income, Expenses, Gains and Losses (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 7,989 | 7,941 | | Rental Income from Investment Properties | 17,712 | 17,097 | | Fair Value Change of Mixed Funds (Gain) Loss | 13,996 | (18,243) | | Fair Value Change of Equity Funds (Loss) Gain | (3,260) | 50,163 | | Net Other Exchange Gains (Losses) | 24,033 | (2,539) | | **Total** | **50,365** | **49,125** | [6. Profit Before Tax](index=11&type=section&id=6.%20Profit%20Before%20Tax) For the six months ended June 30, 2025, total staff costs deducted from profit before tax significantly increased to RMB 359.6 million, primarily due to share-based payment expenses rising from RMB 61.3 million to RMB 193.5 million, with inventory costs and depreciation also increasing - Share-based payment expenses increased by approximately **215.5%** year-on-year, being the primary reason for the significant increase in total staff costs[21](index=21&type=chunk) Items Deducted (Credited) from Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Staff Costs | 359,576 | 228,224 | | - Share-based Payment Expenses | 193,500 | 61,325 | | Cost of Inventories Recognized as Expense | 178,952 | 137,447 | | Total Depreciation and Amortization | 42,750 | 41,776 | [7. Income Tax Expense](index=12&type=section&id=7.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense increased to RMB 38.0 million, primarily due to higher taxable income, with LifeTech Shenzhen, a high-tech enterprise, benefiting from a preferential corporate income tax rate of 15% - LifeTech Shenzhen, as a high-tech enterprise, enjoyed a preferential corporate income tax rate of **15%** for the periods ended June 30, 2025, and 2024[23](index=23&type=chunk) Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Corporate Income Tax | 30,415 | 34,210 | | Hong Kong Profits Tax | 8,530 | 8,059 | | Deferred Tax Credit | (910) | (19,432) | | **Total** | **38,035** | **22,837** | [8. Dividends](index=12&type=section&id=8.%20Dividends) For the interim periods ended June 30, 2025, and 2024, the Company neither paid, declared, nor proposed any dividends - No dividends were paid, declared, or proposed for the interim periods ended June 30, 2025, and 2024[25](index=25&type=chunk) [9. Earnings Per Share](index=13&type=section&id=9.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share attributable to owners of the company were RMB 1.3 cents, a significant decrease from RMB 4.6 cents in the prior year, primarily due to reduced profit - The calculation of diluted earnings per share does not assume the conversion of share options with an exercise price higher than the average market price of the shares[26](index=26&type=chunk) Earnings Per Share Calculation (For the six months ended June 30) | Item | 2025 (RMB thousand / thousand shares) | 2024 (RMB thousand / thousand shares) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share | 55,074 | 205,557 | | Weighted average number of ordinary shares for the purpose of calculating basic earnings per share | 4,344,028 | 4,420,884 | | Weighted average number of ordinary shares for the purpose of calculating diluted earnings per share | 4,350,648 | 4,452,162 | | Basic Earnings Per Share | RMB 1.3 cents | RMB 4.6 cents | | Diluted Earnings Per Share | RMB 1.3 cents | RMB 4.6 cents | [10. Financial Assets at Fair Value Through Profit or Loss](index=14&type=section&id=10.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, total financial assets at fair value through profit or loss increased to RMB 703.0 million, comprising non-current equity and mixed funds and current short-term bank structured deposits, all considered long-term strategic investments primarily in the healthcare industry - The Group, as a limited partner, invests in private equity funds primarily focused on the healthcare industry, aiming for capital appreciation[28](index=28&type=chunk) - The Directors consider the holding of these funds as long-term strategic investments, thus classified as non-current assets[29](index=29&type=chunk) Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted Equity Funds | 205,302 | 209,430 | | Mixed Funds | 56,636 | 42,639 | | Short-term Bank Structured Deposits | 441,000 | 311,000 | | **Total** | **703,018** | **563,149** | [11. Equity Instruments at Fair Value Through Other Comprehensive Income](index=15&type=section&id=11.%20Equity%20Instruments%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of June 30, 2025, equity instruments at fair value through other comprehensive income, comprising Hong Kong-listed equity securities, increased in fair value to RMB 43.4 million, representing a long-term strategic investment as a cornerstone investor in Genesis MedTech - The Group subscribed for shares in Genesis MedTech as a cornerstone investor on September 21, 2022, for a total consideration of **USD 20.0 million**[30](index=30&type=chunk) - The Directors consider this investment as a long-term strategic investment, thus classified as a non-current asset[31](index=31&type=chunk) Equity Instruments at Fair Value Through Other Comprehensive Income (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Hong Kong Listed Equity Securities | 43,410 | 17,099 | [12. Trade Receivables](index=15&type=section&id=12.%20Trade%20Receivables) As of June 30, 2025, total trade receivables increased to RMB 205.2 million, primarily driven by amounts aged 1 to 90 days, with the Group generally granting trade customers credit terms of 30 to 180 days - Total trade receivables increased by approximately **50.1%** year-on-year, primarily concentrated in the 90-day ageing category[32](index=32&type=chunk) Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 1 to 90 days | 158,755 | 124,812 | | 91 to 180 days | 36,504 | 6,616 | | 181 to 365 days | 7,328 | 2,760 | | Over 365 days | 2,625 | 2,502 | | **Total** | **205,212** | **136,690** | [13. Other Receivables and Prepayments](index=16&type=section&id=13.%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total other receivables and prepayments amounted to RMB 479.5 million, largely consistent with December 31, 2024, with advances to employees (others) being the largest component, primarily related to the 2019 share award scheme - Advances to employees (others) primarily refer to deferred payments for shares acquired by employees under the 2019 Share Award Scheme, secured by the relevant shares[33](index=33&type=chunk) Other Receivables and Prepayments (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Other Debts | 41,110 | 18,823 | | Deductible VAT | 47,720 | 76,596 | | Prepayments | 72,735 | 67,928 | | Advances to Employees - Others | 284,495 | 287,519 | | **Total** | **479,543** | **478,222** | [14. Trade Payables](index=16&type=section&id=14.%20Trade%20Payables) As of June 30, 2025, total trade payables increased to RMB 83.0 million, primarily due to growth in amounts aged 0 to 30 days and over 120 days, with suppliers granting credit terms ranging from 30 to 120 days - Total trade payables increased by approximately **39.4%** year-on-year[34](index=34&type=chunk) Ageing Analysis of Trade Payables (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 17,729 | 7,520 | | 31 to 60 days | 8,863 | 9,020 | | 61 to 120 days | 13,498 | 9,007 | | Over 120 days | 42,908 | 33,996 | | **Total** | **82,998** | **59,543** | [15. Financial Liabilities at Fair Value Through Profit or Loss](index=17&type=section&id=15.%20Financial%20Liabilities%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial liabilities at fair value through profit or loss remained at RMB 558.3 million, consistent with December 31, 2024, primarily due to shareholder agreements for Yuanxin Technology's Series A and B rounds, which include share redemption rights if specific conditions are not met - This financial liability arises from Yuanxin Technology's Series A and B shareholder agreements, which include share redemption rights, leading to the classification of related shares as financial liabilities[36](index=36&type=chunk) - Following the completion of the Series B agreement, the Group's equity interest in Yuanxin Technology decreased from **57.44%** to **49.64%**[36](index=36&type=chunk) Financial Liabilities at Fair Value Through Profit or Loss (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital Contributions from Other Investors | 558,326 | 558,326 | [16. Share Capital](index=17&type=section&id=16.%20Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 40,000,000,000 shares with a par value of USD 0.00000125 each, with issued and fully paid share capital slightly increasing due to option exercises, but the total amount remained RMB 37 thousand - The authorized share capital consists of **40,000,000,000 shares** with a par value of **USD 0.00000125** per share[37](index=37&type=chunk) Changes in Share Capital (As of June 30) | Item | Number of Shares | Amount (USD) | Amount (RMB thousand) | | :--- | :--- | :--- | :--- | | As at January 1, 2024 | 4,630,232,400 | 5,789 | 37 | | Exercise of share options | 380,000 | — | — | | As at December 31, 2024 | 4,630,612,400 | 5,789 | 37 | | Exercise of share options | 1,100,000 | 1 | — | | As at June 30, 2025 | 4,631,712,400 | 5,790 | 37 | [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's business operations, financial performance, and strategic initiatives for the reporting period, including sales, R&D, and liquidity [Business Overview](index=19&type=section&id=Business%20Overview) The Group is a developer, manufacturer, and marketer of minimally invasive interventional medical devices for cardiovascular and peripheral vascular diseases, with three main product lines and a stable global sales network - The Group currently has three main product lines: structural heart disease business, peripheral vascular disease business, and pacing and electrophysiology business[40](index=40&type=chunk) - Products include congenital heart disease occluders, left atrial appendage occluders, vena cava filters, covered stents, implantable cardiac pacemakers, and pacemaker leads[40](index=40&type=chunk) - The Group has established a stable global sales network covering numerous countries in Asia, Europe, North America, South America, and Africa[40](index=40&type=chunk) [First Half Performance](index=19&type=section&id=First%20Half%20Performance) For the six months ended June 30, 2025, group revenue grew by 3.7% to RMB 676.7 million, with mainland China remaining the largest market at 74.1% of total revenue, and overseas sales increasing by 8.0% due to active expansion and marketing, while net profit attributable to owners of the company increased by 2.1% excluding non-recurring items but significantly decreased by 73.2% when including them - Asia (excluding mainland China) and Europe were the two largest overseas markets, accounting for approximately **11.4%** and **11.0%** of total revenue, respectively[41](index=41&type=chunk) - Profit attributable to owners of the company (excluding non-recurring items) increased by **2.1%** from **RMB 233.6 million** to **RMB 238.5 million**; however, including non-recurring items, net profit decreased by **73.2%** from **RMB 205.6 million** to **RMB 55.1 million**[42](index=42&type=chunk) First Half Revenue and Market Distribution | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | RMB 676.7 million | RMB 652.8 million | +3.7% | | Mainland China Revenue Share | Approx. 74.1% | Approx. 75.1% | -1.0% | | Overseas Sales Growth | +8.0% | - | - | [Sales and Marketing](index=20&type=section&id=Sales%20and%20Marketing) The Group leverages its experienced sales and marketing team to enhance product brand awareness, influence, and sales through participation in domestic and international medical conferences, academic events, seminars, live surgeries, and professional training, fostering academic exchange in cardiovascular minimally invasive interventions - The Group enhances product brand awareness and influence by organizing or participating in domestic and international medical conferences, academic activities, seminars, live surgeries, and training for medical professionals[43](index=43&type=chunk) - LifeTech Scientific's academic exchange platform connects global cardiovascular experts for academic exchange, promoting the development of medical technology[43](index=43&type=chunk) [Research and Development ("R&D")](index=20&type=section&id=Research%20and%20Development%20%28%22R%26D%22%29) The Company continuously strengthens its innovation capabilities and accelerates product R&D to maintain industry leadership, with several products receiving NMPA or CE MDR certification in the first half, and others undergoing registration approval, CE certification, or clinical enrollment/follow-up - The Aortic Stent Graft System, Aortic Arch Stent Graft System, Peripheral Balloon Dilatation Catheter, YoscopTM Multi-Loop Retrieval System, and SteerEaseTM-m Cardiac Occluder Delivery System have obtained NMPA certification[45](index=45&type=chunk) - The IrisFitTM PFO Occluder and SteerEaseTM Delivery Sheath have obtained CE MDR certification[45](index=45&type=chunk) - Products such as the Thoracoabdominal Aortic Stent Graft System, Iliac Artery Stent Graft System, IBS TitanTM Bioresorbable Drug-Eluting Peripheral Stent System, and IBSTM Bioresorbable Drug-Eluting Coronary Stent System are currently undergoing registration approval or clinical enrollment in China or Europe[45](index=45&type=chunk)[50](index=50&type=chunk) [Intellectual Property](index=21&type=section&id=Intellectual%20Property) Intellectual property is a crucial intangible asset and core competitive driver for the Group, with 73 patent applications submitted and 41 patents approved in the first half of 2025, bringing the total to 1,123 approved and valid patents - For the six months ended June 30, 2025, the Group submitted **73** patent applications and successfully obtained approval for **41** patents[46](index=46&type=chunk) - As of June 30, 2025, the Group had cumulatively submitted **2,464** valid patent applications, with **1,123** approved and valid patents[46](index=46&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance during the reporting period, covering revenue, gross profit, various expenses, changes in financial assets and liabilities, and net profit, indicating overall revenue growth but declining gross margins and significantly reduced operating and net profit due to increased share-based payment expenses [Revenue](index=21&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue was approximately RMB 676.7 million, a 3.7% year-on-year increase, primarily driven by increased sales of covered stents and left atrial appendage occluders - The increase in revenue was primarily due to higher revenue from the sales of covered stents and left atrial appendage occluders[48](index=48&type=chunk) Revenue Overview (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 676.7 | 652.8 | +3.7% | [Revenue from Structural Heart Disease Business](index=21&type=section&id=Revenue%20from%20Structural%20Heart%20Disease%20Business) Revenue from the structural heart disease business was approximately RMB 271.5 million, a marginal 0.1% year-on-year increase, with left atrial appendage occluder sales revenue growing by 14.7% while congenital heart disease occluder sales revenue decreased by 7.2% Structural Heart Disease Business Revenue (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 271.5 | 271.2 | +0.1% | | Left Atrial Appendage Occluder Sales Revenue Growth | +14.7% | - | - | | Congenital Heart Disease Occluder Sales Revenue Decrease | -7.2% | - | - | [Revenue from Peripheral Vascular Disease Business](index=22&type=section&id=Revenue%20from%20Peripheral%20Vascular%20Disease%20Business) Revenue from the peripheral vascular disease business was approximately RMB 391.7 million, a 2.9% year-on-year increase, with covered stent sales revenue growing by 9.6% while vena cava filter sales revenue decreased by 16.8% Peripheral Vascular Disease Business Revenue (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 391.7 | 380.7 | +2.9% | | Covered Stent Sales Revenue Growth | +9.6% | - | - | | Vena Cava Filter Sales Revenue Decrease | -16.8% | - | - | [Revenue from Pacing and Electrophysiology Business](index=22&type=section&id=Revenue%20from%20Pacing%20and%20Electrophysiology%20Business) Revenue from the pacing and electrophysiology business was approximately RMB 13.5 million, representing a significant year-on-year increase of 1,400.0%, indicating strong growth momentum in this segment Pacing and Electrophysiology Business Revenue (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 13.5 | 0.9 | +1,400.0% | [Gross Profit and Gross Margin](index=22&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit decreased by 3.4% year-on-year to RMB 497.8 million, with the gross margin declining by 5.3 percentage points to 73.6%, primarily due to lower product selling prices from centralized procurement policies and changes in sales mix - The decrease in gross margin was primarily due to lower selling prices of certain products under centralized procurement policies and changes in sales mix[53](index=53&type=chunk) Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | RMB 497.8 million | RMB 515.4 million | -3.4% | | Gross Margin | Approx. 73.6% | Approx. 78.9% | -5.3 percentage points | [Other Income, Expenses, Gains and Losses](index=22&type=section&id=Other%20Income%2C%20Expenses%2C%20Gains%20and%20Losses) Other income, expenses, gains, and losses slightly increased to RMB 50.4 million, with an increase in net exchange gains largely offset by a decrease in fair value gains from financial assets at fair value through profit or loss - The change was primarily due to an increase in net exchange gains being offset by a decrease in gains from fair value changes of financial assets at fair value through profit or loss[54](index=54&type=chunk) Other Income, Expenses, Gains and Losses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total | 50.4 | 49.1 | +2.6% | [Financial Assets at Fair Value Through Profit or Loss](index=22&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group made strategic investments in several private equity and mixed funds, with varying fair values; as of June 30, 2025, investments in 2018 equity fund were RMB 9.2 million, 2022 equity fund RMB 196.1 million, 2021 mixed fund RMB 13.5 million, and 2023 mixed fund RMB 43.2 million, all classified as non-current assets - For the six months ended June 30, 2025, total gains from fair value changes of financial assets at fair value through profit or loss amounted to approximately **RMB 10.7 million** (2024: approximately **RMB 31.9 million** gain)[57](index=57&type=chunk) Fair Value of Major Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Investment Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | 2018 Equity Fund | 9.2 | 8.9 | | 2021 Mixed Fund | 13.5 | 12.5 | | 2022 Equity Fund | 196.1 | 200.5 | | 2023 Mixed Fund | 43.2 | 30.2 | [Selling and Distribution Expenses](index=23&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses significantly increased by 67.3% year-on-year to RMB 250.9 million, primarily due to higher staff costs, with share-based payment expenses rising from RMB 24.1 million to RMB 128.4 million Selling and Distribution Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total | 250.9 | 150.0 | +67.3% | | Share-based Payment Expenses | 128.4 | 24.1 | +432.8% | [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) Administrative expenses increased by 63.1% year-on-year to RMB 118.4 million, primarily due to higher staff costs, with share-based payment expenses rising from RMB 16.0 million to RMB 54.6 million Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total | 118.4 | 72.6 | +63.1% | | Share-based Payment Expenses | 54.6 | 16.0 | +241.3% | [Research and Development Expenses](index=24&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased by 18.2% year-on-year to RMB 114.5 million, and total R&D costs, after considering capitalized development expenditure, decreased by 23.6% to RMB 156.0 million, primarily due to reduced share-based payment expenses related to Yuanxin Technology Research and Development Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | R&D Expenses | 114.5 | 139.9 | -18.2% | | Capitalized Development Expenditure | 41.5 | 64.3 | -35.4% | | Total R&D Costs (after capitalization) | 156.0 | 204.2 | -23.6% | | Yuanxin Technology-related Share-based Payment Expenses | 5.9 | 36.3 | -83.7% | [Operating Profit](index=24&type=section&id=Operating%20Profit) Operating profit significantly decreased by 68.1% year-on-year to RMB 64.4 million, primarily due to increased staff costs from higher share-based payment expenses and reduced fair value gains from financial assets at fair value through profit or loss - The decrease in operating profit was primarily due to increased staff costs from higher share-based payment expenses and reduced gains from fair value changes of financial assets at fair value through profit or loss[61](index=61&type=chunk) Operating Profit (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Profit | 64.4 | 202.0 | -68.1% | [Share of Results of Associates](index=24&type=section&id=Share%20of%20Results%20of%20Associates) The Group's share of results of associates turned from a loss of RMB 1.4 million in 2024 to a gain of RMB 5.3 million in 2025 Share of Results of Associates (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Share of Results of Associates | 5.3 (Gain) | (1.4) (Loss) | [Finance Income and Finance Costs](index=24&type=section&id=Finance%20Income%20and%20Finance%20Costs) Finance income increased by 15.7% year-on-year to RMB 10.3 million, while finance costs significantly decreased by 88.9% to RMB 0.1 million Finance Income and Finance Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Income | 10.3 | 8.9 | +15.7% | | Finance Costs | 0.1 | 0.9 | -88.9% | [Financial Liabilities at Fair Value Through Profit or Loss](index=24&type=section&id=Financial%20Liabilities%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial liabilities at fair value through profit or loss remained at RMB 558.3 million, consistent with December 31, 2024, primarily related to Yuanxin Technology's shareholder agreements, which classify them as financial liabilities due to redemption rights - This financial liability arises from Yuanxin Technology's Series A and B shareholder agreements, which include share redemption rights[64](index=64&type=chunk) - For the six months ended June 30, 2025, the fair value change of financial liabilities was not significant[65](index=65&type=chunk) Financial Liabilities at Fair Value Through Profit or Loss (As of June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Fair Value | 558.3 | 558.3 | [Income Tax](index=25&type=section&id=Income%20Tax) Income tax expense increased year-on-year to RMB 38.0 million, primarily attributable to higher taxable income - The increase in income tax was primarily attributable to higher taxable income[68](index=68&type=chunk) Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax | 38.0 | 22.8 | +66.7% | [Net Profit](index=25&type=section&id=Net%20Profit) Excluding non-recurring items, net profit attributable to owners of the company increased by 2.1% year-on-year to RMB 238.5 million; however, including non-recurring items, net profit significantly decreased by 73.2% to RMB 55.1 million, primarily due to reduced fair value gains from financial assets and substantially increased share-based payment expenses - Non-recurring items included other gains from financial assets at fair value through profit or loss of approximately **RMB 9.9 million** (2024: **RMB 32.9 million**) and share-based payment expenses of approximately **RMB 193.5 million** (2024: **RMB 61.3 million**)[69](index=69&type=chunk) Net Profit (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit (excluding non-recurring items) | 238.5 | 233.6 | +2.1% | | Net Profit (including non-recurring items) | 55.1 | 205.6 | -73.2% | [Equity Instruments at Fair Value Through Other Comprehensive Income](index=25&type=section&id=Equity%20Instruments%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of June 30, 2025, the Group's investment in Genesis MedTech had a fair value of approximately RMB 43.4 million, representing about 0.8% of total assets, classified as an equity instrument at fair value through other comprehensive income and considered a long-term strategic investment, generating a fair value gain of approximately RMB 27.0 million this period - For the six months ended June 30, 2025, gains from fair value changes of equity instruments at fair value through other comprehensive income amounted to approximately **RMB 27.0 million** (2024: approximately **RMB 93.2 million** loss)[70](index=70&type=chunk) - The Group holds approximately **1.8%** of Genesis MedTech's issued share capital, and this investment is considered a long-term strategic investment[71](index=71&type=chunk) Equity Instruments at Fair Value Through Other Comprehensive Income (As of June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Fair Value | 43.4 | 17.1 | | Percentage of Total Assets | 0.8% | 0.3% | [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its operations with internal working capital; as of June 30, 2025, total current assets were RMB 2,573.3 million, total current liabilities were RMB 993.3 million, resulting in a current ratio of approximately 2.59, with trade receivables turnover days at 45 and trade payables at 72, and cash and cash equivalents increasing by 17.5% to RMB 782.6 million - The Group had no bank borrowings at the end of the reporting period or as of December 31, 2024, resulting in a zero gearing ratio[74](index=74&type=chunk)[76](index=76&type=chunk) Liquidity and Financial Resources Overview (As of June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Current Assets | 2,573.3 | 2,334.2 | +10.2% | | Total Current Liabilities | 993.3 | 815.6 | +21.8% | | Current Ratio | 2.59 | 2.86 | -9.5% | | Trade Receivables Turnover Days | 45 days | 33 days | +36.4% | | Trade Payables Turnover Days | 72 days | 103 days | -30.1% | | Cash and Cash Equivalents | 782.6 | 665.8 | +17.5% | [Properties Held](index=27&type=section&id=Properties%20Held) Dongguan LifeTech, a wholly-owned subsidiary, acquired land use rights for a plot in Dongguan Songshan Lake in 2019 and commenced construction of an industrial park in 2020; as of June 30, 2025, the park has obtained property ownership certificates, with portions used for self-operation, external leasing, and future allocation - Dongguan LifeTech acquired land use rights for a plot of **43,604 square meters** in 2019, with a total consideration of approximately **RMB 43.6 million**[79](index=79&type=chunk) - The industrial park's total construction contract price reached up to **RMB 620.0 million**, and property ownership certificates for all buildings and the basement were obtained in May 2023[79](index=79&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=27&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The Company, through LifeTech Shenzhen, plans to invest RMB 150.0 million in Jianhu Medical Technology (Suzhou) Co., Ltd. to strengthen its position in the high-growth electrophysiology market; as of the reporting period, the first phase of investment is complete, with LifeTech Shenzhen acquiring a 22.22% equity interest - The Company, through LifeTech Shenzhen, intends to invest a total of **RMB 150.0 million** in Jianhu Medical Technology (Suzhou) Co., Ltd[80](index=80&type=chunk)[81](index=81&type=chunk) - This investment will be carried out in phases, and upon completion of all phases, LifeTech Shenzhen will hold a **30%** equity interest in Jianhu Medical[81](index=81&type=chunk) - As of the date of this interim results announcement, the first phase of the investment has been completed, with LifeTech Shenzhen acquiring a **22.22%** equity interest in Jianhu Medical[81](index=81&type=chunk) [Significant Investments and Future Plans for Significant Investments or Capital Assets](index=28&type=section&id=Significant%20Investments%20and%20Future%20Plans%20for%20Significant%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Company held no significant investments exceeding 5% of total assets and had no other board-authorized plans for major investments or capital asset additions; its investment strategy focuses on seeking strategic collaborations with growth potential in the medical industry to enrich product lines and expand business scale - The Company did not hold any significant investments exceeding **5%** of total assets, nor did it have other plans for significant investments or additions of capital assets[82](index=82&type=chunk) - The investment strategy is to identify investment opportunities with growth potential within the medical industry and seek strategic collaborations to enrich product lines and expand business scale[82](index=82&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025[83](index=83&type=chunk) [Financial Instruments](index=28&type=section&id=Financial%20Instruments) As of June 30, 2025, the Group had no outstanding hedging contracts or financial derivative instruments - As of June 30, 2025, the Group had no outstanding hedging contracts or financial derivative instruments[84](index=84&type=chunk) [Capital Expenditure](index=28&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure was approximately RMB 56.7 million, a significant decrease from RMB 213.2 million in the prior year - Capital expenditure was primarily for property, plant and equipment, construction in progress, intangible assets, right-of-use assets, and deposits for property, plant and equipment[85](index=85&type=chunk) Capital Expenditure (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 56.7 | 213.2 | -73.4% | [Foreign Exchange Risk](index=29&type=section&id=Foreign%20Exchange%20Risk) The Group primarily operates in Asia and Europe, with its operating results and financial position influenced by exchange rate fluctuations; while no hedging strategies were employed during the reporting period, management closely monitors foreign exchange risk, anticipating no significant adverse impact in the short term and considering hedging when necessary - The Group primarily conducts business in Asia and Europe, with revenue from Asia (excluding mainland China) and Europe accounting for approximately **11.4%** and **11.0%** of total revenue, respectively[86](index=86&type=chunk) - Management closely monitors foreign exchange risk to maintain net exposure at an acceptable level and does not anticipate exchange rate fluctuations to have a significant adverse impact on its operations in the foreseeable future[86](index=86&type=chunk) [Pledged Group Assets](index=29&type=section&id=Pledged%20Group%20Assets) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[87](index=87&type=chunk) [Capital Commitments](index=29&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted capital expenditure not yet provided for in the condensed consolidated financial statements was approximately RMB 46.3 million, a decrease from RMB 55.1 million as of December 31, 2024 Capital Commitments (As of June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Contracted Capital Expenditure Not Provided For | 46.3 | 55.1 | [Segment Information (Business Outlook)](index=29&type=section&id=Segment%20Information%20%28Business%20Outlook%29) The Group's revenue primarily stems from structural heart disease, peripheral vascular disease, and pacing and electrophysiology businesses, with future market demand for its products expected to rise due to aging populations, urbanization, and increased health awareness, which the company plans to capitalize on through differentiated marketing, product upgrades, and technological leadership - Aging populations, urbanization, and increasing health awareness collectively drive stable growth in the healthcare industry, with market demand for the Company's products expected to show an upward trend in the future[89](index=89&type=chunk) [Structural Heart Disease Business](index=29&type=section&id=Structural%20Heart%20Disease%20Business) The Company deploys four generations of congenital heart disease occluders to meet diverse patient needs and continuously upgrades its left atrial appendage occluders, anticipating sustained growth in the global market share for left atrial appendage occluders - The Company deploys four generations of congenital heart disease occluders and continuously upgrades its left atrial appendage occluders[90](index=90&type=chunk) - Based on the large global population of atrial fibrillation patients, the global market share for left atrial appendage occluders is expected to continue growing in the future[90](index=90&type=chunk) [Peripheral Vascular Disease Business](index=29&type=section&id=Peripheral%20Vascular%20Disease%20Business) The Company offers technologically advanced systemic comprehensive interventional medical device solutions for peripheral vascular diseases, with leading domestic market shares for vena cava filters and covered stents, and anticipates market demand growth driven by aging populations, increased disease detection rates, and expanded product applications - The Company provides patients with technologically advanced systemic comprehensive interventional medical device solutions for peripheral vascular diseases, with vena cava filters and covered stents holding leading market shares domestically[91](index=91&type=chunk) - Aging populations, increased disease detection rates, and expanded product applications will help drive market demand growth for these products[91](index=91&type=chunk) [Pacing and Electrophysiology Business](index=30&type=section&id=Pacing%20and%20Electrophysiology%20Business) The Company is China's first manufacturer to possess a complete product portfolio of domestically produced implantable cardiac pacemakers with international-level technology and functionality - The Company is China's first manufacturer to possess a complete product portfolio of domestically produced implantable cardiac pacemakers with international-level technology and functionality[92](index=92&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 1,273 full-time employees, with total staff costs of approximately RMB 359.6 million in the first half, primarily impacted by share-based payment expenses; the company offers various benefits, fair performance appraisal systems, and share award schemes, committed to providing a safe and comfortable work environment and development opportunities - The Group's remuneration policy is determined with reference to individual employees' performance, qualifications, and work experience, as well as the Group's performance and market conditions[94](index=94&type=chunk) - The Company has adopted share option schemes and share award schemes to provide incentives to employees and other eligible participants[94](index=94&type=chunk) Employees and Remuneration Overview (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 1,273 | 1,392 | | Total Staff Costs | RMB 359.6 million | RMB 228.2 million | | Retirement Benefit Scheme Contributions | RMB 18.7 million | RMB 18.0 million | [2020 Placing](index=31&type=section&id=2020%20Placing) The Company completed a placing of 287,320,000 new ordinary shares in December 2020, raising approximately HKD 930.0 million in net proceeds; as of June 30, 2025, approximately HKD 391.2 million remains unutilized, earmarked for potential business development, including new overseas clinical projects, with gradual deployment expected from the second half of 2025 to 2027 - The Company completed a placing of **287,320,000** new ordinary shares in December 2020 at a placing price of **HKD 3.2368** per share, raising net proceeds of approximately **HKD 930.0 million**[96](index=96&type=chunk)[97](index=97&type=chunk) - The Directors believe that the 2020 Placing strengthened the Company's financial position and provided working capital[100](index=100&type=chunk) Use of Proceeds from 2020 Placing (As of June 30) | Intended Use | Approximate Allocated Net Proceeds (HKD million) | Approximate Unutilized Net Proceeds as of June 30, 2025 (HKD million) | Expected Time of Utilization | | :--- | :--- | :--- | :--- | | Repayment of Bank Borrowings | 406.0 | — | Fully utilized | | Funding for Potential Business Development | 465.0 | 391.2 | H2 2025 to 2027 | | General Working Capital Purposes | 59.0 | — | Fully utilized | | **Total** | **930.0** | **391.2** | - | [Events After Reporting Period](index=32&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the Group occurred after June 30, 2025 - No significant events affecting the Group occurred after June 30, 2025[102](index=102&type=chunk) [Future Outlook](index=33&type=section&id=Future%20Outlook) [Future Outlook](index=33&type=section&id=Future%20Outlook) The global medical device industry continues to present significant growth opportunities driven by demographic shifts, technological advancements, and increasing healthcare demands; the Company, with strong R&D, diversified products, and international presence, is strategically investing in Jianhu Medical to strengthen its electrophysiology market position and commercialize innovative products through overseas networks, focusing on international expansion, technological innovation, product upgrades, and prudent capital allocation for sustainable growth and shareholder value maximization - The global medical device industry continues to present significant growth opportunities driven by demographic shifts, technological advancements, and increasing healthcare demands[103](index=103&type=chunk) - The strategic investment in Jianhu Medical is a key milestone to consolidate its position in the high-growth electrophysiology market, expected to generate significant synergies, particularly through leveraging overseas distribution networks for the commercialization of innovative products[103](index=103&type=chunk) - The future focus will remain on international business expansion, maintaining overall operational efficiency, continuous investment in new technology development and product upgrades, and a prudent capital allocation strategy[103](index=103&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) This section covers corporate governance, compliance, and administrative matters, including dividend policy, securities transactions, and the review of interim results [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board does not recommend paying any interim dividend for the six months ended June 30, 2025 - The Directors do not recommend paying any interim dividend for the six months ended June 30, 2025 (2024: nil)[105](index=105&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[106](index=106&type=chunk) [Compliance with Corporate Governance Code](index=34&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company is committed to high standards of corporate governance and confirms compliance with the Corporate Governance Code provisions in Appendix C1 of the Listing Rules during the reporting period, noting that the combined roles of Chairman and Chief Executive Officer, while deviating from Code Provision C.2.1, are deemed by the Board to provide strong and stable leadership - The Company confirms compliance with the Code Provisions under the Corporate Governance Code for the six months ended June 30, 2025, except for the deviation from Code Provision C.2.1 where the roles of Chairman and Chief Executive Officer are combined[107](index=107&type=chunk) - The Board believes that Mr. Xie Yuehui serving concurrently as Chairman and Chief Executive Officer provides strong and stable leadership for the Company, ensuring effective implementation of business decisions and strategies[107](index=107&type=chunk) [Standard Code for Securities Transactions](index=34&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules as its code of conduct and confirms that all Directors, senior management, executives, and employees with potential access to inside information complied with this code during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its own code of conduct[109](index=109&type=chunk) - For the six months ended June 30, 2025, all members of the Board and employees with potential access to inside information complied with the requirements of the Standard Code[109](index=109&type=chunk) [Audit Committee and Review of Interim Results](index=35&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee, comprising three independent non-executive directors, reviewed and discussed the Group's unaudited interim results for the six months ended June 30, 2025, confirming compliance with relevant accounting standards, Listing Rules, and applicable legal requirements, with adequate disclosures made - The Audit Committee comprises three independent non-executive directors: Mr. Leung Hin Chee (Chairman), Mr. Zhou Luming, and Mr. Wang Wansong[110](index=110&type=chunk) - The Audit Committee has reviewed and discussed the Group's unaudited interim results for the six months ended June 30, 2025, deeming them compliant with relevant accounting standards, Listing Rules, and applicable legal requirements, with adequate disclosures made[110](index=110&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company, with the 2025 interim report, containing all required information, to be made available to shareholders and published on the aforementioned websites in due course - The interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company[111](index=111&type=chunk) - The Company's 2025 interim report, containing all information required by the Listing Rules, will be made available to shareholders and published on the aforementioned websites in due course[111](index=111&type=chunk)