[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the company's revenue and profit attributable to owners decreased year-on-year, with basic and diluted earnings per share also declining, while the intimate wear product segment grew, but the industrial projects and logistics segment significantly decreased | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 1,435,894 | 1,514,450 | | **Segment Results** | | | | Intimate Wear Products | 69,652 | 60,257 | | Industrial Projects and Logistics | 10,945 | 79,841 | | Profit Attributable to Owners of the Company | 57,796 | 82,398 | | **Earnings Per Share** | | | | Basic (RMB cents) | 2.7 | 3.8 | | Diluted (RMB cents) | 2.6 | 3.7 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue was RMB 1,435,894 thousand, a decrease from RMB 1,514,450 thousand in the prior period, with profit for the period declining by approximately 31% to RMB 53,447 thousand | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 1,435,894 | 1,514,450 | | Cost of Sales | (770,130) | (795,551) | | Gross Profit | 665,764 | 718,899 | | Selling and Marketing Expenses | (523,907) | (514,693) | | General and Administrative Expenses | (79,664) | (83,833) | | Operating Profit | 65,448 | 123,833 | | Finance Costs – Net | (10,341) | (8,713) | | Profit Before Income Tax | 55,389 | 115,311 | | Income Tax Expense | (1,942) | (37,965) | | Profit for the Period | 53,447 | 77,346 | | Profit Attributable to Owners of the Company | 57,796 | 82,398 | | Total Comprehensive Income for the Period | 51,339 | 71,732 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets were RMB 3,603,808 thousand, a slight decrease from December 31, 2024, with total equity at RMB 2,064,809 thousand, total liabilities at RMB 1,538,999 thousand, and a significant reduction in current liabilities | Metric | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 1,298,672 | 1,332,097 | | Total Current Assets | 2,305,136 | 2,364,711 | | **Total Assets** | **3,603,808** | **3,696,808** | | **Equity** | | | | Share Capital and Reserves Attributable to Owners of the Company | 2,081,081 | 2,032,990 | | Non-controlling Interests | (16,272) | (11,627) | | **Total Equity** | **2,064,809** | **2,021,363** | | **Liabilities** | | | | Total Current Liabilities | 1,070,864 | 1,465,386 | | Total Non-current Liabilities | 468,135 | 210,059 | | **Total Liabilities** | **1,538,999** | **1,675,445** | | **Total Equity and Liabilities** | **3,603,808** | **3,696,808** | [Notes to the Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation for interim financial information, changes in accounting policies, general company information including its registered place, principal business, and ultimate holding company, along with detailed classifications and analyses of key financial accounts [General Information](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) This section provides basic information on the company's place of registration, principal business, and ultimate holding company - The company is registered in the Cayman Islands, with its principal business being the design, marketing, and sale of intimate wear products, development of industrial projects, and provision of logistics services in China[9](index=9&type=chunk) - The company's ultimate holding company is Yao Li Investment Holdings Limited, controlled by Mr. Zheng Yaonan[10](index=10&type=chunk) [Basis of Preparation](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section outlines the basis for preparing the interim financial information, emphasizing it should be read in conjunction with the annual consolidated financial statements - The interim financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[11](index=11&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) This section explains the consistency of accounting policies adopted for the interim condensed consolidated financial information with the annual financial statements, noting the initial adoption of revised standards - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those followed in the annual financial statements, except for the initial adoption of revised International Financial Reporting Standards[12](index=12&type=chunk) - The amendments to International Accounting Standard 21 regarding "Lack of Exchangeability" had no impact on this interim condensed consolidated financial information[13](index=13&type=chunk) [Operating Segment Information](index=7&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) This section identifies the Group's two reportable operating segments: intimate wear products and industrial projects and logistics, providing their respective revenue and performance data - The Group has two reportable operating segments: the intimate wear products segment (design, marketing, and sale of intimate wear products) and the industrial projects and logistics segment (development of industrial projects and provision of logistics services)[14](index=14&type=chunk) - The Group's revenue from external customers is generated solely from its operations in China, with no single external customer accounting for **10%** or more of revenue[15](index=15&type=chunk) Reportable Segment Revenue and Results | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Segment Revenue** | | | | Intimate Wear Products | 1,288,540 | 1,295,054 | | Industrial Projects and Logistics | 147,354 | 219,396 | | **Segment Results** | | | | Intimate Wear Products | 69,652 | 60,257 | | Industrial Projects and Logistics | 10,945 | 79,841 | [Revenue](index=8&type=section&id=%E6%94%B6%E5%85%A5) This section details the company's customer contract revenue breakdown by source, including retail, sales to franchisees, e-commerce, logistics revenue, and sales of industrial project properties Disaggregation of Revenue from Contracts with Customers | Revenue Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Retail | 662,627 | 643,711 | | Sales to Franchisees | 400,984 | 424,611 | | E-commerce | 224,929 | 226,732 | | Logistics Revenue | 64,445 | 47,521 | | Sales of Industrial Project Properties | 82,909 | 171,875 | | **Total Revenue** | **1,435,894** | **1,514,450** | [Other Income and Other Losses – Net](index=8&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E8%99%A7%E6%90%8D%EF%BC%8D%E6%B7%A8%E9%A1%8D) This section analyzes the company's other income and net losses for the reporting period, including government grants, investment income, exchange losses, and gains/losses from disposal of property, plant, and equipment Analysis of Other Income | Other Income Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government Grants | 813 | 1,147 | | Investment Income from Financial Assets | 382 | 1,707 | | Others | 7,160 | 6,475 | | **Total Other Income** | **8,355** | **9,329** | Analysis of Other Losses – Net | Other Loss Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Exchange Losses | (872) | (3,166) | | (Loss)/Gain on Disposal of Property, Plant and Equipment – Net | (5) | 19 | | **Total Other Losses – Net** | **(877)** | **(3,147)** | [Profit Before Income Tax](index=9&type=section&id=%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) This section lists the key items included in or deducted from profit before income tax, such as cost of inventories, cost of services, depreciation, amortization, and impairment provisions Items Included in/(Deducted from) Profit Before Income Tax | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of Inventories Sold | 648,935 | 658,921 | | Cost of Services Provided | 65,759 | 48,398 | | Cost of Properties Sold | 55,436 | 88,232 | | Depreciation and Amortisation – Right-of-use Assets | 102,065 | 85,320 | | Depreciation and Amortisation – Property, Plant and Equipment | 41,877 | 40,043 | | Depreciation and Amortisation – Intangible Assets | 3,506 | 3,549 | | Provision for Inventories | 5,736 | – | | Impairment (Reversal)/Provision for Property, Plant and Equipment | (283) | 182 | | Impairment (Reversal)/Provision for Right-of-use Assets | (5,230) | 5,220 | [Income Tax Expense](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) This section analyzes the composition of income tax expense, including current and deferred income tax, and explains the high-tech enterprise preferential tax rate and land appreciation tax provision Analysis of Income Tax Expense | Tax Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current Income Tax – China Corporate Income Tax | 1,271 | 2,029 | | Current Income Tax – China Land Appreciation Tax | 1,873 | 15,811 | | Deferred Income Tax | (1,202) | 20,125 | | **Total Income Tax Expense** | **1,942** | **37,965** | - Guangdong Cosmo Lady was granted a preferential income tax rate of **15%** as a high-tech enterprise in December 2024, valid for three years[23](index=23&type=chunk) - The land appreciation tax provision is management's best estimate based on its understanding of relevant Chinese tax laws and regulations, with the actual liability subject to determination by tax authorities[24](index=24&type=chunk) [Earnings Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This section explains the calculation method for basic earnings per share and provides detailed calculation data for both basic and diluted earnings per share - Basic earnings per share are calculated by dividing the profit attributable to owners of the company by the weighted average number of ordinary shares outstanding during the period[26](index=26&type=chunk) Calculation of Basic and Diluted Earnings Per Share | Metric | 2025 (RMB '000/thousand shares) | 2024 (RMB '000/thousand shares) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 57,796 | 82,398 | | Weighted Average Number of Ordinary Shares for Basic EPS | 2,179,354 | 2,175,223 | | Dilutive Effect – Share Award Scheme | 50,415 | 40,498 | | Number of Shares Used for Calculating Diluted EPS | 2,229,769 | 2,215,721 | [Trade and Bills Receivables](index=11&type=section&id=%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) This section provides the net composition and aging analysis of trade and bills receivables, along with the Group's credit period policy granted to franchisee customers Trade and Bills Receivables – Net | Item | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Amounts Due from Third Parties | 455,045 | 401,417 | | Bills Receivable | 61 | 267 | | Less: Loss Allowance | (18,567) | (16,439) | | **Trade and Bills Receivables – Net** | **436,539** | **385,245** | Aging Analysis of Trade Receivables | Aging | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Within 30 days | 137,802 | 157,275 | | Over 30 days but within 60 days | 105,689 | 44,861 | | Over 60 days but within 90 days | 43,031 | 94,702 | | Over 90 days but within 180 days | 23,981 | 44,192 | | Over 180 days but within 360 days | 120,466 | 48,501 | | Over 360 days | 24,076 | 11,886 | | **Trade Receivables, Total** | **455,045** | **401,417** | - The Group generally grants credit periods of **15 to 90 days** to franchisee customers, and **90 to 180 days** for initial orders of new retail store products[31](index=31&type=chunk) [Trade and Bills Payables](index=12&type=section&id=%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) This section presents the composition of trade and bills payables, including amounts due to third parties and related parties, and provides an aging analysis of trade payables Trade and Bills Payables | Item | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Amounts Due to Third Parties | 218,479 | 398,564 | | Amounts Due to Related Parties | 1,697 | 5,544 | | Bills Payable | 27,253 | 119,365 | | **Total** | **247,429** | **523,473** | Aging Analysis of Trade Payables | Aging | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Within 30 days | 45,589 | 43,302 | | Over 30 days but within 60 days | 6,938 | 38,016 | | Over 60 days but within 90 days | 55,834 | 100,054 | | Over 90 days but within 180 days | 97,490 | 191,386 | | Over 180 days but within 360 days | 7,300 | 19,748 | | Over 360 days | 7,025 | 11,602 | | **Trade Payables, Total** | **220,176** | **404,108** | [Loans](index=13&type=section&id=%E8%B2%B8%E6%AC%BE) This section details the composition of the company's loans, including non-current and current secured bank loans, and advances on discounted bills with recourse Loan Composition | Type | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Non-current Secured Bank Loans | 349,505 | 91,250 | | Current Secured Bank Loans | 118,000 | 304,380 | | Advances on Discounted Bills with Recourse | 104,158 | – | | **Total** | **571,663** | **395,630** | [Business Review](index=14&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Facing global economic adjustments and domestic consumption divergence, the company actively responded by strengthening brand momentum, upgrading product development systems, and deepening channels to improve performance, with profit attributable to owners of the company at RMB 57,796,000 during the reporting period - Profit attributable to owners of the company was **RMB 57,796,000**[34](index=34&type=chunk) - Looking ahead to the second half, the company will continue to adhere to its strategic positioning, uphold the principle of "good quality at affordable prices" for its products, and deepen its layout across brand, product, and channel dimensions to meet challenges and achieve steady performance growth[39](index=39&type=chunk) [Strengthening Brand Momentum](index=14&type=section&id=%E5%BC%B7%E5%8C%96%E5%93%81%E7%89%8C%E5%8B%A2%E8%83%BD) The company continuously enhances brand influence and market recognition by signing sports stars and artists, conducting sports marketing campaigns, obtaining industry certifications, and multi-channel advertising - Signed Chinese short track speed skaters Liu Shaolin and Liu Shaoang as brand ambassadors, reinforcing the brand identity of "National Underwear, Champion's Choice"[35](index=35&type=chunk) - Leveraged the Asian Winter Games' popularity to create the "Let the World Feel China's Warmth" sports marketing campaign, effectively boosting brand momentum[35](index=35&type=chunk) - Announced Gulinazha as brand spokesperson and once again received Frost & Sullivan's "National Sales No. 1" certification, solidifying its foundation as a national intimate wear brand[35](index=35&type=chunk) - Placed advertisements on approximately **180** high-speed rail stations and **50** outdoor large screens in core commercial districts across Beijing, Shanghai, Guangzhou, and Shenzhen, continuously strengthening brand recall[36](index=36&type=chunk) - Continued to fulfill its public welfare mission, cumulatively donating **177,000** items of goods across **12** provinces nationwide in the first half of the year[36](index=36&type=chunk) [Continuous Upgrade of Product Development System](index=15&type=section&id=%E6%8C%81%E7%BA%8C%E5%8D%87%E7%B4%9A%E7%94%A2%E5%93%81%E9%96%8B%E7%99%BC%E9%AB%94%E7%B3%BB) The company continuously upgrades its product development system through in-depth market research, strengthened cooperation with suppliers, and refinement of its blockbuster product matrix to meet diverse consumer demands - Conducted in-depth store surveys, large client interviews, and combined with lingerie exhibitions and online data monitoring to gain insights into consumer needs[37](index=37&type=chunk) - Deepened cooperation with core suppliers to establish differentiated competitive advantages in key areas such as innovative raw material research and development and production process upgrades[37](index=37&type=chunk) - Improved the blockbuster product matrix, continuously building popular and mid-to-high-priced blockbuster products covering multiple consumption scenarios to meet diverse consumer needs[37](index=37&type=chunk) [Channel Deepening](index=16&type=section&id=%E6%B8%A0%E9%81%93%E6%B7%B1%E8%80%95) The company deepened traditional street store channels and expanded into shopping malls with its main brand, achieving significant performance growth for its sub-brands and a substantial increase in e-commerce GMV - The "Cosmo Lady" main brand continued to advance its "strong provinces and counties" strategy, deepening traditional street store channels and expanding into shopping mall channels with a new image[40](index=40&type=chunk) - The Group's "Pure Cotton Home Goods" brand performance increased by approximately **46%** year-on-year[40](index=40&type=chunk) - E-commerce channel GMV exceeded **RMB 1.6 billion**, achieving a significant growth of **243%** year-on-year[40](index=40&type=chunk) [Detailed Financial Performance Analysis](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E8%A9%B3%E6%83%85%E5%88%86%E6%9E%90) This section provides a detailed analysis of changes in the company's financial indicators and their key drivers during the reporting period, including profit, revenue, gross margin, selling and marketing expenses, general and administrative expenses, finance costs, and income tax expense [Profit Attributable to Owners of the Company and Segment Results](index=17&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E5%88%A9%E6%BD%A4%E5%8F%8A%E5%88%86%E9%83%A8%E6%A5%AD%E7%B8%BE) This section analyzes the decrease in profit attributable to owners of the company, detailing the growth in the intimate wear product segment and the significant decline in the industrial projects and logistics segment, along with their reasons - Profit attributable to owners of the company was **RMB 57,796,000**, a decrease of approximately **30%** compared to the same period in 2024[41](index=41&type=chunk) - The intimate wear products segment's performance increased by approximately **16%** to **RMB 69,652,000**, primarily due to collaboration with associates to expand e-commerce platforms, achieving a GMV of approximately **RMB 1.52 billion** (H1 2024: RMB 240 million) and service revenue of approximately **RMB 39.4 million** (H1 2024: RMB 21.0 million)[41](index=41&type=chunk)[42](index=42&type=chunk) - The industrial projects and logistics segment's performance decreased by approximately **86%** to **RMB 10,945,000**, mainly due to a significant reduction in the number of units delivered for the Yuquan project compared to the same period last year[41](index=41&type=chunk)[42](index=42&type=chunk) [Revenue](index=18&type=section&id=%E6%94%B6%E5%85%A5) This section details the composition and changes in the company's revenue, identifying the decrease in industrial project sales as the primary reason for the overall revenue decline, and provides information on the Yuquan project's delivery status Revenue Breakdown and Proportion | Revenue Source | 2025 (RMB '000) | Proportion (%) | 2024 (RMB '000) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Intimate Wear Products: Offline Sales | 1,063,611 | 74.1 | 1,068,322 | 70.5 | | Intimate Wear Products: E-commerce | 224,929 | 15.6 | 226,732 | 15.0 | | Industrial Projects and Logistics: Logistics Revenue | 64,445 | 4.5 | 47,521 | 3.1 | | Industrial Projects and Logistics: Industrial Project Sales | 82,909 | 5.8 | 171,875 | 11.4 | | **Total Revenue** | **1,435,894** | **100.0** | **1,514,450** | **100.0** | - The change in revenue was primarily due to a decrease in industrial project sales, with a significant reduction in the number of units delivered for the Yuquan project leading to a corresponding decrease in related sales revenue[44](index=44&type=chunk) - The Yuquan project has a total gross floor area of approximately **145,000 square meters**, of which approximately **89,000 square meters** are primarily for sale, with approximately **60,000 square meters** delivered and revenue recognized as of June 30, 2025[44](index=44&type=chunk)[45](index=45&type=chunk) [Gross Margin](index=19&type=section&id=%E6%AF%9B%E5%88%A9%E7%8E%87) This section analyzes the stability of the Group's overall gross margin and notes the decline in the industrial projects and logistics gross margin due to reduced sales - The Group's gross margin remained stable at approximately **46.4%** (H1 2024: 47.5%)[46](index=46&type=chunk) - The gross margin for intimate wear products remained stable at approximately **49.6%** (H1 2024: 49.1%)[46](index=46&type=chunk) - The gross margin for industrial projects and logistics decreased to approximately **17.8%** (H1 2024: 37.7%), primarily due to reduced industrial project sales[46](index=46&type=chunk) [Selling and Marketing Expenses](index=19&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E8%B2%BB%E7%94%A8) This section indicates a approximately 2% increase in selling and marketing expenses, primarily attributed to the company's continued investment in brand marketing to enhance brand influence - Selling and marketing expenses increased by approximately **2%** to **RMB 523,907,000**, primarily due to the Group's continuous efforts to enhance its brand power and increase brand marketing investment[47](index=47&type=chunk) [General and Administrative Expenses](index=20&type=section&id=%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) This section notes a approximately 5% decrease in general and administrative expenses, primarily benefiting from the company's continued effective implementation of cost control measures during the reporting period - General and administrative expenses decreased by approximately **5%** to **RMB 79,664,000**, primarily due to the continuous effective implementation of cost control measures during the relevant period[48](index=48&type=chunk) [Finance Costs – Net](index=20&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8%EF%BC%8D%E6%B7%A8%E9%A1%8D) This section indicates that net finance costs increased to approximately RMB 10,341,000, primarily due to a decrease in interest income - Finance costs – net increased to approximately **RMB 10,341,000** (H1 2024: RMB 8,713,000), primarily due to a decrease in interest income[49](index=49&type=chunk) [Income Tax Expense](index=20&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) This section analyzes the decrease in income tax expense to approximately RMB 1,942,000, primarily attributed to reduced land appreciation tax expenses from industrial project sales and profits, and deferred income tax expenses recognized in the prior period - Income tax expense decreased to approximately **RMB 1,942,000** (H1 2024: RMB 37,965,000), primarily due to reduced China land appreciation tax expenses from industrial project sales and profits, and deferred income tax expenses recognized in the prior period[50](index=50&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The company maintains a sound financial position with healthy current and net debt ratios, and this section also outlines foreign exchange risks, capital expenditures, and asset pledges [Overview of Liquidity and Financial Resources](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E6%A6%82%E8%A7%88) This section provides an overview of the company's restricted bank deposits, cash and cash equivalents, loans, and key liquidity financial ratios, including current ratio, total debt ratio, and net debt ratio Liquidity and Financial Ratios | Metric | 2025年6月30日 (RMB '000/times/%) | 2024年12月31日 (RMB '000/times/%) | | :--- | :--- | :--- | | Restricted Bank Deposits and Cash and Cash Equivalents | 554,921 | 621,871 | | Loans | 571,663 | 395,630 | | Current Ratio | 2.2 times | 1.6 times | | Total Debt Ratio | 22.6% | 19.6% | | Net Debt Ratio | Negative 4.2% | Negative 11.2% | [Foreign Exchange Risk](index=21&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) This section states that most of the Group's revenue, expenses, and raw material purchases are settled in RMB, and no significant difficulties have been encountered in remitting profits from mainland China subsidiaries to holding companies outside mainland China - Most of the Group's revenue, expenses, and raw material purchases are settled in RMB, and no significant difficulties have been encountered in remitting profits from mainland China subsidiaries to holding companies outside mainland China[53](index=53&type=chunk) [Capital Expenditure on Property, Plant and Equipment and Intangible Assets](index=21&type=section&id=%E6%9C%89%E9%97%9C%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E5%92%8C%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2%E7%9A%84%E8%B3%87%E6%9C%AC%E6%80%A7%E6%94%AF%E5%87%BA) This section discloses the company's capital expenditure on property, plant and equipment and intangible assets during the reporting period, primarily for store renovation and refurbishment - During the reporting period, capital expenditure on the Group's property, plant and equipment and intangible assets was approximately **RMB 32,647,000** (H1 2024: RMB 33,333,000), primarily for store renovation and refurbishment[54](index=54&type=chunk) [Pledge of Assets](index=21&type=section&id=%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) This section discloses the total amount of restricted bank deposits, property, plant and equipment, and land use rights pledged by the Group as of June 30, 2025, to secure loans and bills payable - As of June 30, 2025, the Group pledged approximately **RMB 646,263,000** of restricted bank deposits, certain property, plant and equipment, and land use rights to secure loans and bills payable[55](index=55&type=chunk) [Human Resources Management](index=21&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E7%AE%A1%E7%90%86) As of June 30, 2025, the Group had approximately 2,000 full-time employees, with remuneration determined by experience, qualifications, and market conditions, alongside training and efforts to foster a harmonious work environment - As of June 30, 2025, the Group had approximately **2,000** full-time employees (December 31, 2024: 2,200 employees)[56](index=56&type=chunk) - Remuneration is determined with reference to individual employees' experience and qualifications, as well as overall market conditions, with bonuses linked to the Group's operating results and individual performance[56](index=56&type=chunk) - The Group provides training for new employees and on-the-job training for existing employees, aiming to develop their skills and create a harmonious and supportive work and living environment[56](index=56&type=chunk) [Other Information](index=22&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers interim dividend policy, corporate governance practices, securities trading, post-reporting period events, and the audit committee's review work [Interim Dividend](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend to shareholders for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend to the company's shareholders for the six months ended June 30, 2025 (2024: **1.1 HK cents** per share, totaling approximately **HKD 24,744,000**)[57](index=57&type=chunk) [Corporate Governance Practices](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period and explained the safeguards for the combined roles of Chairman and Chief Executive Officer - The company has complied with all applicable code provisions in the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the reporting period, except for code provision C.2.1[58](index=58&type=chunk) - Mr. Zheng Yaonan concurrently holds the roles of Chairman of the Board and Chief Executive Officer, and the company believes there are sufficient safeguards to ensure a balance of power on the Board[59](index=59&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) This section confirms that neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities or sold any treasury shares during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities or sold any treasury shares[60](index=60&type=chunk) [Directors' Securities Transactions](index=22&type=section&id=Directors%27%20Securities%20Transactions) All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, for the six months ended June 30, 2025 - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, for the six months ended June 30, 2025[61](index=61&type=chunk) [Significant Events After Reporting Period](index=23&type=section&id=Significant%20Events%20After%20Reporting%20Period) This section confirms that no significant events occurred after the reporting period ended June 30, 2025 - No significant events occurred after June 30, 2025 (the end of the reporting period)[62](index=62&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim financial information and raised no objections to the accounting treatments and principles adopted by the company - The Audit Committee, composed of three independent non-executive directors, has reviewed the unaudited interim financial information for the six months ended June 30, 2025, and has no disagreement with the accounting treatments and principles adopted by the company[63](index=63&type=chunk) [Publication of Interim Results and Interim Report for the Six Months Ended June 30, 2025](index=23&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) This section states that the interim results announcement has been published on the HKEXnews website and the company's website, with the interim report to be published on the same websites in due course - This interim results announcement is published on the HKEXnews website (http://www.hkexnews.hk) and the company's website (http://www.cosmo-lady.com.hk), and the interim report will be published on the aforementioned websites in due course[64](index=64&type=chunk)

2025 ANNUAL REPORT VONGROUP LIMITED 黃河實業有限公司 Stock Code 股份代號 : 318 | 02 | CORPORATE INFORMATION | 02 | 公司資料 | | --- | --- | --- | --- | | 03 | CORPORATE PROFILE | 03 | 公司簡介 | | 06 | MESSAGE FROM THE CEO | 06 | 行政總裁的訊息 | | 11 | MANAGEMENT DISCUSSION AND ANALYSIS | 11 | 管理層討論與分析 | | 19 | PROFILE OF DIRECTORS | 19 | 董事簡介 | | 20 | REPORT OF THE DIRECTORS | 20 | 董事會報告 | | 25 | CORPORATE GOVERNANCE REPORT | 25 | 企業管治報告 | | 34 | ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT | 34 | 環境、社會及管治報告 | | 43 | INDEPENDENT AUD ...

Financial Performance - For the first half of 2025, the company achieved operating revenue of HKD 368.8 billion and net profit of HKD 59.8 billion, with attributable net profit of HKD 31.2 billion, meeting expectations[4] - Total revenue for the first half of 2025 was RMB 368.76 billion, a decrease of 1.6% compared to RMB 374.90 billion in 2024[23] - Net profit attributable to ordinary shareholders was RMB 31.23 billion, down 2.8% from RMB 32.11 billion in the previous year[24] - Net interest income decreased by 3.3% to RMB 71.66 billion, primarily due to a decline in net interest margin at CITIC Bank[24] - Comprehensive financial services revenue increased by 2.0% to RMB 139.78 billion, while advanced manufacturing revenue rose by 7.1% to RMB 27.28 billion[21] - Other operating expenses amounted to RMB 61.44 billion, reflecting a 1.5% increase year-on-year[25] - Credit impairment losses totaled RMB 29.66 billion, a decrease of 11.9% compared to the previous year[26] - Financial expenses netted RMB 5.78 billion, down 16.3% due to reduced interest expenses[27] - Income tax expense increased by 7.8% to RMB 16.17 billion, driven by growth in profit before tax[28] - The net profit for the six months ended June 30, 2025, was RMB 59,845 million, an increase of 5.3% compared to RMB 56,749 million in 2024[67] - Basic earnings per share for the period were RMB 1.07, slightly down from RMB 1.10 in the previous year[67] Market Capitalization and Stock Performance - As of June 30, 2025, the company's stock price reached HKD 10.78 per share, with a total market capitalization of HKD 313.6 billion, an increase of 21% since the beginning of the year, outperforming the Hang Seng Index[4] Dividends - The board proposed an interim dividend of RMB 0.20 per share, an increase of RMB 0.01 per share compared to the previous year, totaling RMB 5.818 billion in dividends[4] - The interim dividend for 2025 is set at RMB 0.2 per share, equivalent to HKD 0.2192600, based on an exchange rate of RMB 1.0 to HKD 1.09630[54] - The 2024 interim dividend was RMB 0.19 per share, equivalent to HKD 0.2079455[54] Technological Advancements and Innovations - The company has successfully launched the world's first RMB-denominated tokenized fund and is the first asset management company in Asia to offer a full range of tokenized currency funds[6] - The company achieved significant technological advancements, including the development of 2200 MPa bridge cable steel for the world's largest bridge construction[11] - The company has established a technology innovation platform with a focus on industrial intelligence and financial technology, enhancing its capacity for high-quality development[10] - The company is focusing on a comprehensive financial system to enhance core functions and deepen financial model innovation, particularly in technology and green finance, serving over 14,100 national-level specialized and innovative enterprises[6] International Business Development - The company is actively pursuing international business development, achieving substantial growth in overseas investment banking net profit and signing contracts for notable projects in the UAE and Uzbekistan[8] - The company is actively promoting a comprehensive service platform to enhance international cooperation and expand business opportunities along the "Belt and Road" initiative[18] Risk Management - The company has made substantial progress in risk management, with a new project funding amounting to 9.8 billion yuan[14] - The company is focused on enhancing its comprehensive risk management system, emphasizing proactive risk control measures[39] - The company aims to strengthen risk management in overseas operations and improve risk accountability mechanisms[43] - The company has established a multi-layered risk preference system to manage various types of risks effectively[42] - The financial sector's regulatory penalties decreased by 30% in number and 80% in amount in the first half of the year[44] Green Finance and Sustainability - The company aims to invest over RMB 60 billion in clean technology during the 14th Five-Year Plan, focusing on clean energy, lightweight manufacturing, energy conservation, and environmental protection[49] - The green loan balance reached RMB 701.3 billion, an increase of 16.7% compared to the beginning of the year[49] - The company is committed to promoting green finance, with green bond underwriting totaling RMB 69.2 billion, ranking among the market leaders[49] - The company holds over 12,000 effective patents, including more than 3,800 invention patents related to clean technology and energy conservation[49] - The company is advancing its green low-carbon transformation and fulfilling corporate social responsibilities through technological innovation[46] Corporate Governance and Compliance - The company is committed to improving corporate governance practices in line with the latest regulatory requirements[52] - The audit committee consists of five non-executive directors, three of whom are independent[53] - The interim financial report for the six months ending June 30, 2025, has been reviewed by external auditors[53] - The company aims to enhance financial consumer protection and has established a mechanism for regular reporting to the board[51] - 100% training coverage for consumer financial protection has been achieved, including management and customer-facing employees[51] Segment Performance - The group has five operating segments: Integrated Financial Services, Advanced Manufacturing, Advanced Materials, New Consumption, and New Urbanization[82] - The Integrated Financial Services segment includes banking, securities, trust, insurance, and asset management services[85] - The Advanced Manufacturing segment encompasses heavy machinery, special robots, aluminum wheels, and aluminum castings production[85] - The Advanced Materials segment involves the extraction, processing, and trading of resources and energy products, including iron ore, copper, and crude oil[85] - The New Consumption segment covers automotive and food sales, telecommunications, publishing, and modern agriculture[85] - The New Urbanization segment includes property development, sales and holdings, engineering contracting and design services, infrastructure, environmental protection, and general aviation[85] Legal Matters - Clive Palmer has filed a claim for AUD 1,800,438,000 in damages against the company, alleging losses due to the failure to pay mining rights usage fees[127] - The court hearings for the lawsuit CIV 2072/2017 are scheduled to begin on June 9, 2025, and conclude on June 27, 2025[129] - A new lawsuit (CIV 1487/2025) was filed by Mineralogy against Sino Iron, Korean Steel, and the company on May 8, 2025, claiming breaches of the MRSLA and other project agreements[157] - The court proceedings for the main lawsuit concluded on June 27, 2025, with the court reserving its judgment[147]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's financial performance in the first half of 2025 shows significant revenue growth in property development, stable operating and service income, but a decline in profit attributable to owners, alongside a reduction in total borrowings and a low net gearing ratio | Indicator | H1 2025 (RMB billion) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 58.75 | 25.4 | | Property Development Revenue | 45.48 | 34.7 | | Operation Business Revenue | 7.01 | 2.5 | | Service Business Revenue | 6.26 | Slight increase | | Total Operation and Service Business Revenue | 13.27 | 1.3 | | Profit Attributable to Owners of the Company | 3.22 | - | | Core Profit Attributable to Owners (excluding fair value changes) | 1.38 | - | | Basic Earnings Per Share | 0.48 | - | | Core Basic Earnings Per Share (excluding fair value changes) | 0.21 | - | | Interim Dividend (per share) | 0.07 | - | | Indicator | As of June 30, 2025 (RMB billion) | Change from end of previous year (RMB billion) | | :--- | :--- | :--- | | Total Consolidated Borrowings | 169.80 | Decrease of 6.53 | | Cash on Hand | 44.67 | - | | Equity Attributable to Owners of the Company | 165.07 | - | | Net Gearing Ratio | 51.2% | - | | Average Financing Cost | 3.58% | - | | Average Contractual Borrowing Tenor | 10.95 years | - | [Interim Results](index=2&type=section&id=Interim%20Results) The interim results for the first half of 2025 detail the company's financial performance, including income, balance sheet, and notes to the financial statements, reflecting revenue growth but declining profitability [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) In H1 2025, Longfor Group's revenue increased by 25.4% to RMB 58.75 billion, but gross profit and period profit both decreased, with profit attributable to owners significantly lower | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 58,750,323 | 46,855,050 | 25.4% | | Cost of Sales | (51,327,981) | (37,214,687) | 37.9% | | Gross Profit | 7,422,342 | 9,640,363 | -23.0% | | Other Income | 236,882 | 684,070 | -65.3% | | Other Gains and Losses | (200,132) | 834,589 | From gain to loss | | Fair Value Changes of Investment Properties | 2,819,775 | 1,499,648 | 88.0% | | Selling and Marketing Expenses | (1,526,402) | (1,913,687) | -20.2% | | Administrative Expenses | (1,710,438) | (2,281,433) | -25.0% | | Finance Costs | (84,088) | (77,179) | 9.0% | | Share of Results of Associates | (136,855) | 412,943 | From gain to loss | | Share of Results of Joint Ventures | (127,902) | 343,946 | From gain to loss | | Profit Before Tax | 6,386,675 | 9,130,542 | -30.0% | | Income Tax Expense | (2,438,429) | (2,155,553) | 13.1% | | Profit for the Period | 3,948,246 | 6,974,989 | -43.4% | | Profit Attributable to Owners of the Company | 3,215,852 | 5,865,716 | -45.2% | | Basic Earnings Per Share (RMB cents) | 47.7 | 89.9 | -46.9% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly increased, driven by investment properties, while current assets and liabilities decreased, and total equity remained stable | Indicator | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Investment Properties | 215,975,822 | 210,924,077 | 2.4% | | Interests in Associates | 14,010,039 | 14,459,115 | -3.0% | | Interests in Joint Ventures | 18,147,964 | 18,313,904 | -0.9% | | Total Non-current Assets | 273,782,678 | 270,635,040 | 1.2% | | **Current Assets** | | | | | Properties Under Development and for Sale | 196,233,707 | 220,995,189 | -11.3% | | Trade and Other Receivables | 21,247,607 | 23,924,771 | -11.3% | | Bank Balances and Cash | 42,632,220 | 47,951,575 | -11.1% | | Total Current Assets | 357,820,423 | 395,006,745 | -9.4% | | **Current Liabilities** | | | | | Trade and Other Payables | 54,407,280 | 59,902,852 | -9.2% | | Contract Liabilities | 75,363,487 | 91,847,431 | -17.9% | | Bank and Other Borrowings - Due within one year | 25,611,455 | 30,244,198 | -15.3% | | Total Current Liabilities | 208,859,016 | 240,877,400 | -13.3% | | **Total Equity** | | | | | Equity Attributable to Owners of the Company | 165,070,676 | 161,431,062 | 2.3% | | Non-controlling Interests | 79,372,045 | 84,045,749 | -5.6% | | Total Equity | 244,442,721 | 245,476,811 | -0.4% | | **Non-current Liabilities** | | | | | Bank and Other Borrowings - Due after one year | 134,708,895 | 136,561,264 | -1.4% | | Deferred Tax Liabilities | 22,065,164 | 20,566,150 | 7.3% | | Total Non-current Liabilities | 178,301,364 | 179,287,574 | -0.5% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the basis of preparation, significant accounting policies, segment information, and specific financial account compositions and changes [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 and applicable disclosure requirements of the HKEX Listing Rules - Financial statements are prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules[9](index=9&type=chunk) [2. Principal Accounting Policies](index=6&type=section&id=2.%20Principal%20Accounting%20Policies) The financial statements are prepared primarily under the historical cost convention, with certain properties and financial instruments measured at revalued or fair value - Financial statements are primarily prepared under the historical cost convention, with certain assets measured at revalued or fair value[10](index=10&type=chunk) - Revisions to IFRS accounting standards adopted in the current period (e.g., IAS 21 amendment "Lack of Exchangeability") have no material impact on the Group's financial position and performance[11](index=11&type=chunk) [3. Segment Information](index=7&type=section&id=3.%20Segment%20Information) The Group's operating segments include development, operation, and services, with development revenue significantly increasing but segment profit turning to loss in H1 2025 - The Group's operating segments are primarily divided into development business (development and sale of office buildings, commercial and residential properties), operation business (leasing investment properties, including shopping malls and rental housing), and service business (property management and construction agency services)[15](index=15&type=chunk) | Segment | H1 2025 Revenue from External Customers (RMB thousand) | H1 2024 Revenue from External Customers (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Development Business | 45,478,268 | 33,757,912 | 34.7% | | Operation Business | 7,008,234 | 6,834,540 | 2.5% | | Service Business | 6,263,821 | 6,262,598 | 0.02% | | **Total** | **58,750,323** | **46,855,050** | **25.4%** | | Segment | H1 2025 Segment (Loss) Profit (RMB thousand) | H1 2024 Segment Profit (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Development Business | (1,182,231) | 530,818 | From profit to loss | | Operation Business | 4,126,116 | 4,094,621 | 0.8% | | Service Business | 2,556,138 | 2,719,603 | -6.0% | | **Total** | **5,500,023** | **7,345,042** | **-25.2%** | | Segment | As of June 30, 2025 Total Segment Assets (RMB thousand) | As of Dec 31, 2024 Total Segment Assets (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Development Business | 205,357,489 | 233,383,707 | -12.0% | | Operation Business | 173,611,849 | 172,298,236 | 0.8% | | Service Business | 12,248,703 | 11,630,110 | 5.3% | | **Total Segment Assets** | **391,218,041** | **417,312,053** | **-6.3%** | | Segment | As of June 30, 2025 Total Segment Liabilities (RMB thousand) | As of Dec 31, 2024 Total Segment Liabilities (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Development Business | 101,487,212 | 118,332,866 | -14.2% | | Operation Business | 22,649,461 | 23,910,772 | -5.3% | | Service Business | 4,037,912 | 4,299,332 | -6.1% | | **Total Segment Liabilities** | **128,174,585** | **146,542,970** | **-12.6%** | [4. Other Income](index=11&type=section&id=4.%20Other%20Income) In H1 2025, the Group's other income significantly decreased by 65.3% to RMB 237 million, primarily due to reductions in interest, government grants, and consulting income | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest Income | 120,631 | 338,358 | -64.4% | | Government Grants | 29,952 | 60,381 | -50.4% | | Default Income | 8,151 | 77,557 | -89.5% | | Consulting Income | 64,458 | 157,248 | -59.0% | | Miscellaneous Income | 13,690 | 50,526 | -72.9% | | **Total** | **236,882** | **684,070** | **-65.3%** | [5. Other Gains and Losses](index=12&type=section&id=5.%20Other%20Gains%20and%20Losses) In H1 2025, the Group's other gains and losses shifted from a gain to a loss of RMB 200 million, influenced by foreign exchange gains but losses from subsidiary disposals | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Gains on disposal and write-off of property, plant and equipment | 40,253 | 2,318 | 1636.5% | | Net foreign exchange gains (losses) | 133,224 | (807,480) | From loss to gain | | Fair value gains (losses) on hedging instruments reclassified from hedging reserve | (133,210) | 807,397 | From gain to loss | | Gains (losses) on disposal of subsidiaries | (70,416) | 53,509 | From gain to loss | | Gains on repurchase of senior notes and bonds | – | 854,587 | Gain disappeared | | Others | (169,983) | (75,742) | 124.4% | | **Total** | **(200,132)** | **834,589** | From gain to loss | [6. Finance Costs](index=12&type=section&id=6.%20Finance%20Costs) Net finance costs for H1 2025 slightly increased to RMB 84.1 million, as a decrease in total interest expense was offset by a corresponding reduction in capitalized amounts | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | (2,800,390) | (3,831,201) | -26.9% | | Interest expense on senior notes | (196,903) | (235,009) | -16.2% | | **Total Interest Expense** | **(2,997,293)** | **(4,066,210)** | **-26.3%** | | Less: Amount capitalized | 2,913,205 | 3,989,031 | -27.0% | | **Net Finance Costs** | **(84,088)** | **(77,179)** | **9.0%** | - Capitalized borrowing costs are calculated at an annual interest rate of **3.58%**, lower than **4.16%** in the prior year[26](index=26&type=chunk) [7. Income Tax Expense](index=13&type=section&id=7.%20Income%20Tax%20Expense) Total income tax expense for H1 2025 increased by 13.1% to RMB 2.438 billion, driven by a significant rise in deferred tax expense despite lower current tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | PRC corporate income tax | (527,844) | (984,489) | -46.4% | | Hong Kong profits tax | (9,811) | (13,738) | -28.6% | | Withholding tax on distributed profits | (21,375) | (85,000) | -74.8% | | Land appreciation tax | (767,705) | (921,174) | -16.6% | | **Total Current Tax** | **(1,326,735)** | **(2,004,401)** | **-33.8%** | | Over-provision in prior periods (corporate income tax) | – | 24,707 | From provision to none | | Over-provision in prior periods (land appreciation tax) | 175,410 | 901,300 | -80.5% | | **Deferred Tax** | **(1,287,104)** | **(1,077,159)** | **19.5%** | | **Total Income Tax Expense** | **(2,438,429)** | **(2,155,553)** | **13.1%** | - Over-provision of land appreciation tax in prior periods decreased, mainly due to the determination of actual appreciation amounts for certain property projects and revisions to development plans[27](index=27&type=chunk) [8. Profit for the Period](index=14&type=section&id=8.%20Profit%20for%20the%20Period) Profit for the period in H1 2025 was RMB 3.948 billion, a 43.4% decrease from the prior year, after deducting depreciation and amortization expenses | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 56,528 | 97,644 | -42.1% | | Depreciation of right-of-use assets | 15,383 | 17,337 | -11.3% | | Amortization of intangible assets | 102,867 | 102,487 | 0.4% | [9. Dividends](index=14&type=section&id=9.%20Dividends) The Board declared an interim dividend of RMB 0.07 per share for H1 2025, a significant decrease from the previous year, with the 2024 final dividend paid partly in cash and partly in shares | Dividend Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Final dividend recognized for 2024 (RMB 0.10 per share) | 698,718 | - | - | | Final dividend recognized for 2023 (RMB 0.23 per share) | - | 1,559,579 | - | | Interim dividend declared (RMB 0.07 per share) | 489,103 | - | - | | Interim dividend declared (RMB 0.22 per share) | - | 1,488,848 | - | - The H1 2024 interim dividend of **RMB 526 million** was paid in cash, with the remaining portion paid in new fully paid shares on April 8, 2025[31](index=31&type=chunk) [10. Earnings Per Share](index=15&type=section&id=10.%20Earnings%20Per%20Share) Basic earnings per share attributable to owners for H1 2025 significantly decreased to RMB 0.477 from RMB 0.899, despite an increase in the weighted average number of ordinary shares | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company for the purpose of basic and diluted earnings per share (RMB thousand) | 3,215,852 | 5,865,716 | -45.2% | | Weighted average number of ordinary shares for the purpose of basic earnings per share (thousand shares) | 6,744,356 | 6,527,212 | 3.3% | | Weighted average number of ordinary shares for the purpose of diluted earnings per share (thousand shares) | 6,762,401 | 6,541,262 | 3.4% | - Basic earnings per share decreased from **RMB 0.899** to **RMB 0.477**[6](index=6&type=chunk) [11. Trade and Other Receivables, Deposits and Prepayments](index=16&type=section&id=11.%20Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2025, total trade and other receivables, deposits, and prepayments decreased by 11.3% to RMB 21.248 billion, with a rise in trade receivables but a decline in other categories | Item | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables - customer contracts | 5,527,151 | 4,704,800 | 17.5% | | Trade receivables - rental | 104,175 | 94,330 | 10.4% | | Other receivables, net of allowance for doubtful debts | 4,755,415 | 6,380,180 | -25.5% | | Advances to contractors | 1,429,484 | 2,154,044 | -33.7% | | Prepayments for VAT and other taxes | 9,416,146 | 10,572,425 | -10.9% | | **Total** | **21,247,607** | **23,924,771** | **-11.3%** | | Ageing of Trade Receivables | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 3,987,074 | 3,346,340 | | 61 to 180 days | 997,267 | 882,905 | | 181 to 365 days | 402,181 | 359,562 | | 1 to 2 years | 194,548 | 168,043 | | 2 to 3 years | 36,461 | 30,960 | | Over 3 years | 13,795 | 11,320 | | **Total** | **5,631,326** | **4,799,130** | [12. Trade and Other Payables and Accrued Expenses](index=17&type=section&id=12.%20Trade%20and%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, total trade and other payables and accrued expenses decreased by 9.2% to RMB 54.407 billion, reflecting reductions across trade payables, dividends payable, and VAT payable | Item | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables and accrued construction costs | 39,396,134 | 40,560,546 | -2.9% | | Dividends payable | 778,710 | 1,514,840 | -48.6% | | Other payables and accrued expenses | 11,721,359 | 13,337,202 | -12.1% | | VAT payable | 2,395,060 | 4,372,087 | -45.2% | | **Amounts due within one year shown under current liabilities** | **54,407,280** | **59,902,852** | **-9.2%** | | Ageing of Trade Payables | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 9,550,862 | 7,400,145 | | 61 to 180 days | 6,343,079 | 6,273,556 | | 181 to 365 days | 3,688,430 | 5,469,068 | | 1 to 2 years | 3,651,693 | 4,559,787 | | 2 to 3 years | 696,868 | 989,784 | | Over 3 years | 433,022 | 528,918 | | **Total** | **24,363,954** | **25,221,258** | [Chairman's Report](index=18&type=section&id=Chairman%27s%20Report) The Chairman's Report highlights the company's resilience in a restructuring property market, focusing on debt structure adjustment, asset optimization, and high-quality development, supported by stable operating cash flow - China's economy demonstrates resilience under coordinated policies, with the property sector accelerating restructuring, and Longfor Group upholding delivery and payment commitments, adjusting debt structure, optimizing asset portfolio, and forging a new path for high-quality development[39](index=39&type=chunk) | Indicator | H1 2025 (RMB billion) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 58.8 | 25 | | Operating Business Revenue | 13.3 | 1.3 | - In the first half, the Group's interest-bearing debt decreased by **RMB 6.5 billion** from the end of last year, with the average financing cost falling to a record low of **3.58%** and the average contractual borrowing tenor extending to a record high of **10.95 years**[39](index=39&type=chunk) - Operating cash flow, including capital expenditures, achieved a net inflow of over **RMB 2 billion**, providing solid support for navigating the cycle[39](index=39&type=chunk) - The development business strategy focuses on balancing profit and cash flow from existing projects, vigorously promoting sales and cash collection, and maintaining prudent investment in new land acquisition[40](index=40&type=chunk) - Operation and service businesses contribute stably, with continuously enhanced profitability and cash flow feedback capabilities[40](index=40&type=chunk) - The **89** operational shopping malls maintained a high occupancy rate of **97%** in the first half, with overall sales increasing by approximately **17%** and average daily foot traffic increasing by approximately **11%**[41](index=41&type=chunk) - The asset management segment (long-term rental apartments, industrial offices, and six other formats) achieved revenue exceeding **RMB 1.5 billion** in the first half, with dual improvements in asset quality and profitability[41](index=41&type=chunk) - The property management segment manages approximately **2,200** projects with a total managed area of approximately **400 million square meters**, achieving revenue of **RMB 5.5 billion** in the first half[41](index=41&type=chunk) - Longfor Smart Manufacturing achieved agency construction sales of **RMB 8.4 billion** and delivered **1.22 million square meters** in the first half, maintaining rapid growth[42](index=42&type=chunk) - The "Longfor" APP was launched, upgrading the full ecological scenarios for new home purchases, rental housing, shopping malls, and services, creating a closed-loop service connecting all business segments and multiple functions[42](index=42&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the Group's operational and financial performance across its development, operation, and service segments, along with insights into cost control, profitability, land reserves, and financial position [Development Business](index=21&type=section&id=Development%20Business) In H1 2025, development business revenue grew by 34.7% to RMB 45.48 billion, with 3.527 million square meters delivered, but contract sales declined by 31.5% to RMB 35.01 billion | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue (RMB million) | 45,478 | 33,758 | 34.7% | | Total GFA Delivered (million sq.m.) | 3.527 | 3.029 | 16.4% | | Revenue per sq.m. (RMB/sq.m.) | 12,894 | 11,145 | 15.7% | | Region (Revenue) | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Yangtze River Delta Region | 19,082 | 5,949 | 220.8% | | Western Region | 9,074 | 13,221 | -31.4% | | Bohai Rim Region | 8,880 | 8,582 | 3.5% | | Southern China Region | 6,094 | 4,371 | 39.4% | | Central China Region | 2,348 | 1,635 | 43.6% | | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Contract Sales (RMB million) | 35,010 | 51,120 | -31.5% | | Total GFA Sold (million sq.m.) | 2.614 | 3.655 | -28.5% | | Average Selling Price (RMB/sq.m.) | 13,393 | 13,985 | -4.3% | | Region (Contract Sales) | H1 2025 (RMB million) | Proportion (%) | | :--- | :--- | :--- | | Western Region | 9,825 | 28.1% | | Yangtze River Delta Region | 9,293 | 26.5% | | Bohai Rim Region | 8,228 | 23.5% | | Southern China Region | 4,206 | 12.0% | | Central China Region | 3,458 | 9.9% | - As of June 30, 2025, contract sales already sold but not yet recognized amounted to **RMB 105.9 billion**, covering an area of approximately **8.54 million square meters**[47](index=47&type=chunk) [Operation Business](index=22&type=section&id=Operation%20Business) In H1 2025, operation business generated RMB 7.01 billion in tax-exclusive rental income, a 2.5% increase, achieving a 77.7% operating gross margin and significant investment property revaluation gains - Operation business primarily includes commercial investment (urban shopping centers "Tianjie" and community shopping centers "Xingyuehui") and asset management (long-term rental apartments "Guanyu", vibrant neighborhoods "Huan Si", serviced apartments "Champs-Elysees Residence", industrial offices "Blue Ocean Engine", women's and children's hospitals "Youyou Baby", and health and elderly care "Chunshan Wanshu")[48](index=48&type=chunk) | Indicator | H1 2025 | | :--- | :--- | | Tax-exclusive Rental Income | **RMB 7.01 billion** (YoY growth of **2.5%**) | | Commercial Income Proportion | **78.5%** | | Asset Management Income Proportion | **21.5%** | | Operating Gross Margin | **77.7%** (YoY growth of **2.3%**) | | GFA of Opened Shopping Malls | **9.43 million square meters** | | Shopping Mall Rental Income | **RMB 5.50 billion** (YoY growth of **4.9%**) | | Overall Occupancy Rate of Shopping Malls | **96.8%** | | Guanyu Opened Units | **127,000 units** | | Guanyu Overall Occupancy Rate | **95.6%** | | Guanyu Projects Opened for over six months Occupancy Rate | **97.2%** | | Investment Property Revaluation Gain | **RMB 2.82 billion** | [Service Business](index=23&type=section&id=Service%20Business) In H1 2025, service business revenue slightly increased to RMB 6.26 billion, maintaining a gross margin of approximately 30.0%, with property management covering 400 million square meters - Service business primarily includes property management (providing thirteen major formats such as residential management and commercial enterprise services) and construction agency business (Longfor Smart Manufacturing providing full-format, full-cycle, digital one-stop solutions)[51](index=51&type=chunk) | Indicator | H1 2025 | | :--- | :--- | | Tax-exclusive Revenue | **RMB 6.26 billion** (YoY growth of **0.02%**) | | Gross Margin | Approximately **30.0%** | | Property Managed Area | Approximately **400 million square meters** | - Longfor Smart Manufacturing's agency construction business has expanded to core first and second-tier cities including Beijing, Shanghai, Chengdu, Chongqing, Xi'an, and Hangzhou, continuously focusing on deep cultivation and achieving high-quality rapid development through a key client strategy[51](index=51&type=chunk) [Cost Control](index=24&type=section&id=Cost%20Control) In H1 2025, administrative expenses were 3.5% and selling expenses were 3.2% of development contract sales and operating service revenue, reflecting efficiency efforts | Expense Type | Proportion of Development Contract Sales and Operating Service Revenue | | :--- | :--- | | Administrative Expenses | 3.5% | | Selling Expenses | 3.2% | [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense) Total income tax expense for H1 2025 was RMB 2.44 billion, comprising RMB 1.85 billion in corporate income tax and RMB 0.59 billion in land appreciation tax | Tax Type | H1 2025 (RMB billion) | | :--- | :--- | | Corporate Income Tax Expense | 1.85 | | Land Appreciation Tax | 0.59 | | **Total Income Tax** | **2.44** | [Profitability](index=24&type=section&id=Profitability) In H1 2025, the Group's core after-tax profit margin was 3.0%, and core after-equity profit margin was 2.4% | Indicator | H1 2025 | | :--- | :--- | | Core After-tax Profit Margin | 3.0% | | Core After-equity Profit Margin | 2.4% | [Land Reserve Replenishment](index=24&type=section&id=Land%20Reserve%20Replenishment) As of June 30, 2025, total land reserves were 28.4 million square meters, with an average cost of RMB 4,207 per square meter, and new acquisitions focused on the Yangtze River Delta and Western regions | Indicator | As of June 30, 2025 | | :--- | :--- | | Total Land Reserve GFA | **28.4 million square meters** | | Attributable GFA | **21.13 million square meters** | | Average Cost | **RMB 4,207/square meter** | | Newly Acquired Land Reserve GFA (H1) | **0.249 million square meters** | | Newly Acquired Attributable GFA (H1) | **0.184 million square meters** | | Newly Acquired Average Attributable Cost (H1) | **RMB 7,907/square meter** | | Land Reserve Region Distribution | Proportion of Total GFA (%) | Proportion of Attributable GFA (%) | | :--- | :--- | :--- | | Bohai Rim Region | 36.3% | 43.5% | | Western Region | 28.0% | 27.4% | | Central China Region | 17.1% | 12.4% | | Yangtze River Delta Region | 11.3% | 10.3% | | Southern China Region | 7.3% | 6.4% | - Newly acquired land reserves in the first half were primarily distributed in the **Yangtze River Delta Region (52.2%)** and the **Western Region (47.8%)**[55](index=55&type=chunk) - After the reporting period, a new project, Chengdu Jinxiu Avenue, was acquired in the Western Region, with a total GFA of **0.025 million square meters** and an attributable GFA of **0.011 million square meters**[55](index=55&type=chunk) [Financial Position](index=28&type=section&id=Financial%20Position) As of June 30, 2025, total consolidated borrowings were RMB 169.80 billion, with cash on hand of RMB 44.67 billion, a net gearing ratio of 51.2%, and an average financing cost of 3.58% | Indicator | As of June 30, 2025 | | :--- | :--- | | Total Consolidated Borrowings | **RMB 169.80 billion** | | Cash on Hand | **RMB 44.67 billion** (including **RMB 13.41 billion** in pre-sale regulatory funds) | | Net Gearing Ratio | **51.2%** | | Asset-Liability Ratio Excluding Prepayments | **56.1%** | | Average Financing Cost | **3.58%** per annum | | Average Contractual Borrowing Tenor | **10.95 years** | | Non-mortgaged Debt as Proportion of Total Debt | **31.6%** | | Debt Due within One Year | **RMB 25.61 billion** | | Debt Due within One Year as Proportion of Total Debt | **15.1%** | | Cash-to-Short-Term Debt Ratio (excluding pre-sale regulatory funds and restricted funds) | **1.14 times** | - The Group's credit ratings are **BB (S&P)**, **Ba3 (Moody's)**, **BB- (Fitch)**, and **AAA (China Chengxin International Credit Rating)**[60](index=60&type=chunk) - Approximately **86.0%** of total borrowings are denominated in RMB, and **14.0%** in foreign currencies, with foreign currency borrowings fully hedged with currency swaps to control exchange rate risk[61](index=61&type=chunk) - Approximately **16%** of borrowings bear interest at fixed annual rates of **3.0% to 4.8%**, with the remainder bearing floating interest rates[61](index=61&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's remuneration policy is based on employee performance, experience, and market wages, including basic salary, cash bonuses, and share-based compensation - Remuneration policy is based on employee performance, work experience, and market wage levels, including basic salary, cash bonuses, and share-based compensation[62](index=62&type=chunk) - Cash bonuses are comprehensively assessed based on the achievement of Group performance targets and subsidiary balanced scorecard scores[62](index=62&type=chunk) [Review and Outlook](index=29&type=section&id=Review%20and%20Outlook) The review highlights the property market's recovery and the Group's commitment to high-quality development across its five business segments, with a forward-looking strategy focused on debt reduction and sustainable growth - In the first half, the real estate market continued its recovery, with national commercial housing sales decreasing by **5.5%** year-on-year to **RMB 4.4 trillion**, as policies continued to stabilize expectations, stimulate demand, optimize supply, and mitigate risks[63](index=63&type=chunk) - The Group adheres to a high-quality development model, focusing on three major business segments: development, operation, and services, and synergistically developing five business channels: property development, commercial investment, asset management, property management, and smart construction[63](index=63&type=chunk) - Development business achieved contract sales of **RMB 35.01 billion** in the first half, with sales in first and second-tier cities accounting for approximately **90%**, and a consolidated cash collection rate exceeding **100%**; in the second half, the focus will remain on investment layout in core cities and inventory destocking[63](index=63&type=chunk) - Commercial investment added **1** heavy-asset shopping mall in the first half, accumulating **89** operational shopping malls, with an occupancy rate of **97%** at period-end and rental income increasing by **4.9%** year-on-year to **RMB 5.50 billion**; **10** new shopping malls are planned to open in the second half[64](index=64&type=chunk) - Asset management brand "Longfor Smart Asset Management" achieved revenue of **RMB 1.51 billion** in the first half, of which long-term rental apartment brand "Guanyu" contributed **RMB 1.24 billion** in rental income, with **127,000** opened units and an occupancy rate of approximately **96%** at period-end[64](index=64&type=chunk) - Property management brand "Longfor Smart Living" achieved revenue of **RMB 5.53 billion** in the first half, managing approximately **400 million square meters**, building a smart space management platform based on digital technology[65](index=65&type=chunk) - Smart construction brand "Longfor Smart Manufacturing" achieved revenue of **RMB 0.70 billion** in the first half, achieving high-quality rapid development through its full-format development experience and digital technology capabilities[65](index=65&type=chunk) - Looking ahead, the Group will adhere to its core strategy of high-quality development, maintain prudent financial management, orderly reduce debt, adjust inventory structure, and promote steady growth in its operation and service businesses, driven by positive operating cash flow for sustainable development[65](index=65&type=chunk) [Declaration of Interim Dividend](index=30&type=section&id=Declaration%20of%20Interim%20Dividend) The Board declared an interim dividend of RMB 0.07 per share for H1 2025, payable in HKD on April 30, 2026, with shareholders having the option to receive it in cash or shares - The Board declared an interim dividend of **RMB 0.07** per share for the six months ended June 30, 2025[66](index=66&type=chunk) - The interim dividend will be declared in RMB and paid in HKD, converted at the average middle exchange rate of RMB to HKD published by the People's Bank of China from March 12 to March 13, 2026[66](index=66&type=chunk) - The interim dividend will be paid on **April 30, 2026**, to shareholders whose names appear on the register of members on **March 20, 2026**[66](index=66&type=chunk) - Eligible shareholders have the option to receive the dividend in cash, new shares, or a combination of cash and new shares (scrip dividend scheme)[66](index=66&type=chunk) [Closure of Register of Members](index=31&type=section&id=Closure%20of%20Register%20of%20Members) The company's share transfer registration will be suspended from March 18 to March 20, 2026, to determine eligibility for the interim dividend - The Company's share transfer registration will be suspended from **March 18, 2026, to March 20, 2026** (both dates inclusive)[68](index=68&type=chunk) - To be eligible for the interim dividend, all share transfer documents accompanied by the relevant share certificates must be lodged with the Hong Kong Share Registrar Branch by **4:30 p.m. on March 17, 2026**[68](index=68&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during H1 2025, and no shares were held in treasury as of June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[69](index=69&type=chunk) - As of June 30, 2025, the Company held no treasury shares[69](index=69&type=chunk) [Corporate Governance](index=31&type=section&id=Corporate%20Governance) This section outlines the company's corporate governance practices, including the role of the Audit Committee and adherence to the Standard Code for Securities Transactions by Directors [Audit Committee](index=32&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors chaired by Mr. Chan Chi An, has reviewed the Group's unaudited interim results for H1 2025 - The Audit Committee comprises three independent non-executive directors, with Mr. Chan Chi An serving as Chairman[71](index=71&type=chunk) - The Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025[71](index=71&type=chunk) [Standard Code for Securities Transactions by Directors](index=32&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a standard code for directors' securities transactions, which all directors confirmed adherence to during the reporting period - The Company has adopted a standard code for directors' dealings in the Company's securities, which is no less exacting than that set out in Appendix C3 of the Listing Rules[72](index=72&type=chunk) - All Directors confirmed compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[72](index=72&type=chunk) [Publication of Results Announcement and Interim Report](index=32&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This announcement is published on the company's and HKEX websites, with the 2025 interim report to be dispatched to shareholders and published online in due course - This announcement has been published on the Company's website (www.longfor.com) and the HKEXnews website (www.hkexnews.hk)[73](index=73&type=chunk) - The Company's 2025 Interim Report will be dispatched to shareholders and published on the aforementioned websites in due course[73](index=73&type=chunk)

[Company Information](index=3&type=section&id=Company%20Information) Provides key details about the company's executive and independent directors, stock code, and website - Executive Directors include Mr. Xiang Xin (Chairman and Chief Executive Officer) and Mr. Chen Changyi[3](index=3&type=chunk) - Independent Non-executive Directors include Ms. An Jing, Ms. Zhou Zan, and Ms. Qin Han[3](index=3&type=chunk) - The company's stock code is **1217**, and its website is www.1217.com.hk[5](index=5&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) Presents a concise overview of the company's financial performance, including turnover, profit, and earnings per share, along with dividend policy Financial Highlights | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Turnover | 683,279 | 269,660 | | Revenue | 30,825 | 11,843 | | Profit for the period and attributable to owners of the Company | 23,072 | 8,109 | | Basic Earnings Per Share (HK cents) | 0.180 | 0.063 | - The Board does not recommend paying an interim dividend for the six months ended June 30, 2025, to conserve capital for operations and potential investment opportunities[7](index=7&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) Offers a comprehensive review of the company's financial and business performance, strategic outlook, liquidity, capital structure, and employee information [Financial Review](index=6&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the company achieved significant growth in turnover and net profit, primarily due to increased realized gains from the disposal of investments measured at fair value through profit or loss - For the six months ended June 30, 2025, the company's **turnover was approximately HKD 683,279,000**, a significant increase from HKD 269,660,000 in the same period of 2024[8](index=8&type=chunk) - The company's **revenue was approximately HKD 30,825,000**, primarily comprising net realized gains of approximately HKD 47,507,000 from the disposal of investments measured at fair value through profit or loss, and net unrealized holding losses of approximately HKD 18,188,000[9](index=9&type=chunk)[10](index=10&type=chunk) - **Net profit for the period was approximately HKD 23,072,000**, a significant increase from HKD 8,109,000 in the same period of 2024, mainly due to increased realized gains from investment disposals[11](index=11&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) As a listed investment company on the HKEX, the company primarily seeks capital appreciation through investments in both unlisted and listed entities, increasing stakes in six unlisted companies and maintaining significant holdings in Hong Kong-listed securities, including Alibaba Group Holding Limited [Investments in Unlisted Companies](index=6&type=section&id=Investments%20in%20Unlisted%20Companies) As of June 30, 2025, the company held investments in six unlisted companies across sectors like solar energy, LED lighting, building materials, health communications, asset management, and hotel services, increasing its equity in five of them - As of June 30, 2025, the company held investments in six unlisted companies with a total carrying value of approximately **HKD 261,535,000**[13](index=13&type=chunk) - The company increased its shareholding in Sun Creation Limited (solar energy), Weimei Vision Limited (LED lighting), Lianguan Future Limited (building decoration materials), Fengtian Huifu Limited (health communications), and Guangyuan Starry Sky Limited (asset management)[16](index=16&type=chunk) - The company committed to further capital contributions of approximately **HKD 99,771,000** to Sun Hong Kong, Weimei Hong Kong, Lianguan Overseas, Fengtian Hong Kong, and Guangyuan Hong Kong[15](index=15&type=chunk) [Investments in Listed Companies](index=8&type=section&id=Investments%20in%20Listed%20Companies) The company saw a significant increase in total proceeds from sales of Hong Kong-listed securities, with an enhanced value of listed equity investments measured at fair value through profit or loss, prominently featuring Alibaba Group Holding Limited, alongside a strategic investment in Easy Life Holdings Limited whose shares are currently suspended from trading - For the half-year ended June 30, 2025, total proceeds from investment sales were **HKD 683,279,000**, a significant increase from HKD 269,660,000 in the same period of 2024[19](index=19&type=chunk) Investments measured at fair value through profit or loss (equity securities listed in Hong Kong) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Investments measured at fair value through profit or loss (equity securities listed in Hong Kong) | 128,157 | 86,251 | - Key listed equity securities include **Alibaba Group Holding Limited (09988.hk)**, with **729,000 shares** held, valued at approximately **HKD 80,044,000**[19](index=19&type=chunk) - On September 25, 2024, the company subscribed for **226,000,000 new shares** of Easy Life Holdings Limited (00223.hk), representing approximately **16.66%** of its issued share capital, though Easy Life shares were suspended from trading on December 2, 2024[21](index=21&type=chunk) [Outlook](index=9&type=section&id=Outlook) The company aims for medium-to-long-term capital appreciation by investing in quality listed and unlisted companies, having achieved breakthroughs in six industrial sectors: new energy, new light sources, new materials, new health, new services, and new capital, while continuing to explore innovative business models like the "free economy" and actively participating in the "Common Prosperity Program" - The company's primary operating strategy is to achieve medium-to-long-term capital appreciation by investing in quality listed and unlisted companies, aiming to benefit from the securitization process of invested enterprises[22](index=22&type=chunk) - Substantial project breakthroughs have been achieved in six industrial sectors: **"new energy," "new light sources," "new materials," "new health," "new services," and "new capital"**[22](index=22&type=chunk)[23](index=23&type=chunk) - The company explores investing in "free economy" business models, such as investing in photovoltaic buildings to collect electricity generation revenue from power companies, and investing in debt instruments to receive returns linked to index growth[24](index=24&type=chunk) - The company and its subsidiaries actively respond to the national "Common Prosperity" policy by participating in the "Common Prosperity Program," aiming to help business clients increase sales and end-users increase consumption[24](index=24&type=chunk) [Liquidity and Financial Position](index=11&type=section&id=Liquidity%20and%20Financial%20Position) As of June 30, 2025, the company held approximately HKD 195,188,000 in cash and cash equivalents, primarily denominated in HKD, operating with its own funds in a net cash position with zero gearing, anticipating sufficient financial resources for future needs - As of June 30, 2025, the company's **cash and cash equivalents were approximately HKD 195,188,000**, primarily denominated in HKD[25](index=25&type=chunk) - The company funds its operations with its own capital, has not raised any bank financing, is in a **net cash position**, and has a **gearing ratio of zero**[25](index=25&type=chunk) [Capital Structure](index=11&type=section&id=Capital%20Structure) For the six months ended June 30, 2025, the company's capital structure consisted solely of ordinary shares, with no changes during the period - The company's capital is composed solely of **ordinary shares**[26](index=26&type=chunk) [Foreign Exchange Fluctuations](index=11&type=section&id=Foreign%20Exchange%20Fluctuations) The company primarily conducts business transactions in USD and HKD, and the Directors believe there is no significant foreign exchange fluctuation risk, thus no need to hedge exchange rate risks, though management will continue to monitor - The company primarily conducts business transactions in **US dollars and Hong Kong dollars**[27](index=27&type=chunk) - The Directors believe the company has **no significant foreign exchange fluctuation risk** and does not need to hedge any exchange rate risks[27](index=27&type=chunk) [Pledge of Company Assets and Contingent Liabilities](index=11&type=section&id=Pledge%20of%20Company%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, the company had not pledged any assets and had no significant contingent liabilities - As of June 30, 2025, the company had **not pledged any of its assets** and had **no significant contingent liabilities**[28](index=28&type=chunk) [Employee Information](index=11&type=section&id=Employee%20Information) As of June 30, 2025, the company had 15 employees, a decrease from 2024, with total remuneration paid increasing during the period, and its remuneration policy is regularly reviewed based on market conditions and individual performance - As of June 30, 2025, the company had **15 staff members** (2024: 19)[29](index=29&type=chunk) - Total remuneration paid to staff (including Directors' emoluments) was approximately **HKD 1,690,000** (2024: HKD 1,325,000)[29](index=29&type=chunk) [Acknowledgement](index=12&type=section&id=Acknowledgement) The Board of Directors extends its sincere gratitude to all individuals who supported and contributed to the company during the reporting period - The Board of Directors expresses its sincere gratitude to all individuals who strongly supported and made significant contributions to the company during the period[30](index=30&type=chunk) [Disclosure of Interests](index=13&type=section&id=Disclosure%20of%20Interests) Details the shareholdings and option interests of the company's directors and major shareholders [Directors' Interests Disclosure](index=13&type=section&id=Directors%27%20Interests%20Disclosure) As of June 30, 2025, independent non-executive directors An Jing, Zhou Zan, and Qin Han each held 30,000,000 share options with an exercise price of HKD 0.0497, representing approximately 0.23% of the company's issued share capital Directors' Interests in Share Options | Director Name | Number of Shares | Percentage | | :--- | :--- | :--- | | An Jing | 30,000,000(L) | 0.23% | | Zhou Zan | 30,000,000(L) | 0.23% | | Qin Han | 30,000,000(L) | 0.23% | - The exercise price for all share options is **HKD 0.0497**[34](index=34&type=chunk) [Major Shareholders' Interests Disclosure](index=14&type=section&id=Major%20Shareholders%27%20Interests%20Disclosure) As of June 30, 2025, Harvest Rise Investments Limited was a major shareholder, holding 29.82% of shares, with China Trends Holdings Limited and China Science and Technology Education Foundation holding the same interest through their control over Harvest Rise Investments Limited Major Shareholders' Interests | Name/Entity | Capacity | Number of Shares | Percentage | | :--- | :--- | :--- | :--- | | Harvest Rise Investments Limited | Beneficial | 3,817,807,905(L) | 29.82% | | China Trends Holdings Limited | Interest in controlled corporation | 3,817,807,905(L) | 29.82% | | China Science and Technology Education Foundation | Interest in controlled corporation | 3,817,807,905(L) | 29.82% | - Harvest Rise Investments Limited is a wholly-owned private company beneficially owned by China Trends Holdings Limited, and China Science and Technology Education Foundation is the largest shareholder of China Trends[36](index=36&type=chunk) [Corporate Governance and Other Information](index=15&type=section&id=Corporate%20Governance%20and%20Other%20Information) Outlines the company's adherence to corporate governance practices, audit committee functions, and other relevant disclosures [Corporate Governance Practices](index=15&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code, with the only deviation being the combined roles of Chairman and Chief Executive Officer, which the Board deems to be in the company's best interest - The company is committed to adopting best corporate governance practices and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[37](index=37&type=chunk) - The roles of Chairman and Chief Executive Officer are held by Mr. Xiang Xin, which deviates from Code Provision C.2.1, but the Board considers this arrangement appropriate and in the company's best interest[38](index=38&type=chunk) [Audit Committee](index=15&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing the company's financial reporting process, internal controls, and risk management systems, and has reviewed the unaudited condensed financial statements for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive Directors (Ms. An Jing, Ms. Qin Han, and Ms. Zhou Zan), with Ms. An Jing serving as Chairman[39](index=39&type=chunk) - Its primary responsibilities include reviewing and overseeing the company's financial reporting process, internal controls, and risk management systems[39](index=39&type=chunk) - The unaudited condensed financial statements for the six months ended June 30, 2025, have been reviewed[40](index=40&type=chunk) [Events After Reporting Period](index=16&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period - No significant events occurred after the reporting period[41](index=41&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, the company did not purchase, sell, or redeem any of its own listed securities - For the six months ended June 30, 2025, the company did not purchase, sell, or redeem any of its own listed securities[42](index=42&type=chunk) [Standard Code for Securities Transactions](index=16&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all Directors have complied with its required standards - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[43](index=43&type=chunk) - Following specific enquiries with all Directors, the company's Directors have complied with the required standards set out in the Model Code[44](index=44&type=chunk) [Sufficiency of Public Float](index=16&type=section&id=Sufficiency%20of%20Public%20Float) For the entire six-month period ended June 30, 2025, the company maintained a sufficient public float in accordance with the Listing Rules - For the entire six-month period ended June 30, 2025, the company maintained a sufficient public float in accordance with the Listing Rules[45](index=45&type=chunk) [Condensed Statement of Profit or Loss and Other Comprehensive Income](index=17&type=section&id=Condensed%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Presents a summary of the company's financial performance, including turnover, revenue, expenses, and profit for the period Condensed Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Turnover | 683,279 | 269,660 | | Revenue | 30,825 | 11,843 | | Other income | 1,829 | 66 | | Administrative and other operating expenses | (8,938) | (3,741) | | Share of results of an associate | (611) | – | | Finance costs | (33) | (59) | | Profit before tax | 23,072 | 8,109 | | Income tax expense | – | – | | Profit for the period and attributable to owners of the Company | 23,072 | 8,109 | | Total comprehensive income for the period and attributable to owners of the Company | 23,072 | 8,109 | | Basic Earnings Per Share (HK cents) | 0.180 | 0.063 | [Condensed Statement of Financial Position](index=18&type=section&id=Condensed%20Statement%20of%20Financial%20Position) Provides a snapshot of the company's assets, liabilities, and equity at the end of the reporting period Condensed Statement of Financial Position | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Right-of-use assets | 881 | 1,321 | | Property, plant and equipment | 217 | 265 | | Investment in an associate | 11,276 | 11,887 | | Equity investments at fair value through other comprehensive income | 250,259 | 200,259 | | **Current Assets** | | | | Investments measured at fair value through profit or loss | 128,157 | 86,251 | | Prepayments, deposits and other receivables | 30,752 | 35,006 | | Cash and bank balances | 195,188 | 213,589 | | **Current Liabilities** | | | | Other payables and accrued expenses | 50,013 | 4,486 | | Lease liabilities | 934 | 907 | | **Non-current Liabilities** | | | | Lease liabilities | – | 474 | | **Total Equity** | 565,783 | 542,711 | [Condensed Statement of Changes in Equity](index=19&type=section&id=Condensed%20Statement%20of%20Changes%20in%20Equity) Details the movements in the company's equity components over the reporting period Condensed Statement of Changes in Equity | Metric | January 1, 2025 (HKD thousands) | Total comprehensive income for the period (HKD thousands) | June 30, 2025 (HKD thousands) | | :--- | :--- | :--- | :--- | | Issued share capital | 128,016 | – | 128,016 | | Share premium | 655,342 | – | 655,342 | | Revaluation reserve | (137,766) | – | (137,766) | | Share option reserve | 708 | – | 708 | | Accumulated losses | (103,589) | 23,072 | (80,517) | | **Total Equity** | **542,711** | **23,072** | **565,783** | [Condensed Statement of Cash Flows](index=20&type=section&id=Condensed%20Statement%20of%20Cash%20Flows) Summarizes the cash inflows and outflows from operating, investing, and financing activities Condensed Statement of Cash Flows | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net cash (used in) generated from operating activities | (19,460) | 150,250 | | Net cash flow from investing activities | 1,506 | 5,092 | | Net cash used in financing activities | (447) | (421) | | Net (decrease) increase in cash and cash equivalents | (18,401) | 154,921 | | Cash and cash equivalents at beginning of period | 213,589 | 40,578 | | Cash and cash equivalents at end of period | 195,188 | 195,499 | [Notes to the Condensed Financial Statements](index=21&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) Provides detailed explanations and breakdowns for various items presented in the condensed financial statements [1 Company Information](index=21&type=section&id=1%20Company%20Information) Incorporated in the Cayman Islands, the company has been listed on the Main Board of the HKEX since August 28, 2002, primarily engaging in investment activities to achieve medium-to-long-term capital appreciation through investments in listed and unlisted companies in Hong Kong and Mainland China - The company was incorporated in the Cayman Islands, and its shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **August 28, 2002**[50](index=50&type=chunk) - The company's principal business is investment, aiming to achieve medium-to-long-term capital appreciation through investments in listed and unlisted companies in Hong Kong and China[50](index=50&type=chunk) [2 Basis of Preparation](index=21&type=section&id=2%20Basis%20of%20Preparation) The unaudited condensed interim financial statements are prepared in HKD in accordance with HKAS 34 and Appendix D2 of the Listing Rules, with accounting policies consistent with the 2024 annual financial statements, and new/revised HKFRSs having no significant impact on current or prior period results - The unaudited condensed interim financial statements are prepared in accordance with Appendix D2 of the Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[51](index=51&type=chunk) - The financial statements are presented in **Hong Kong dollars**, which is the company's functional currency[52](index=52&type=chunk) - The accounting policies and methods of computation used in preparing these financial statements are consistent with those used in the preparation of the 2024 financial statements, and new and revised HKFRSs have had no significant impact[52](index=52&type=chunk) [3 Turnover, Revenue and Other Income](index=22&type=section&id=3%20Turnover%2C%20Revenue%20and%20Other%20Income) Turnover represents total proceeds from sales of investments measured at fair value through profit or loss, while revenue primarily includes bank interest, dividends from Hong Kong-listed equity securities, net realized gains from investment disposals, and net unrealized holding losses, with other income mainly comprising foreign exchange gains - Turnover represents the total proceeds from the sale/redemption of investments measured at fair value through profit or loss[53](index=53&type=chunk) Revenue Sources | Source of Revenue | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Bank interest income | 1,289 | 1,681 | | Dividend income from equity securities listed in Hong Kong | 217 | 3,411 | | Net realized gains from disposal of investments measured at fair value through profit or loss | 47,507 | 24,522 | | Net unrealized holding (losses) gains on investments measured at fair value through profit or loss | (18,188) | (17,771) | | **Total Revenue** | **30,825** | **11,843** | - Other income primarily consists of **foreign exchange gains**, amounting to **HKD 1,829 thousand** in 2025 (2024: HKD 66 thousand)[54](index=54&type=chunk) [4 Profit Before Tax](index=23&type=section&id=4%20Profit%20Before%20Tax) The company's profit before tax is arrived at after deducting depreciation of right-of-use assets, depreciation of property, plant and equipment, employee benefit expenses, interest expense on lease liabilities, and investment management fees Profit Before Tax Components | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 440 | 440 | | Depreciation of property, plant and equipment | 48 | 48 | | Employee benefit expenses (including Directors' emoluments) | 1,690 | 1,325 | | Interest expense on lease liabilities | 33 | 59 | | Fees for investment management | 160 | 240 | [5 Income Tax Expense](index=23&type=section&id=5%20Income%20Tax%20Expense) For the six months ended June 30, 2025, and 2024, no provision for Hong Kong profits tax was made, as sufficient tax losses were available to offset estimated assessable profits - The company made **no provision for Hong Kong profits tax** for the six months ended June 30, 2025, and 2024, as there were sufficient tax losses available to offset estimated assessable profits[56](index=56&type=chunk) [6 Earnings Per Share](index=23&type=section&id=6%20Earnings%20Per%20Share) Basic earnings per share was 0.180 HK cents, calculated based on profit attributable to owners and the weighted average number of shares outstanding; diluted earnings per share is not presented due to the absence of potential dilutive ordinary shares - **Basic earnings per share** was calculated at **0.180 HK cents** (2024: 0.063 HK cents), based on profit attributable to owners of the Company of approximately HKD 23,072,000 and the weighted average number of 12,801,578,629 shares outstanding during the period[57](index=57&type=chunk) - **Diluted earnings per share** is not presented as the company has **no potential dilutive ordinary shares**[57](index=57&type=chunk) [7 Equity Investments at Fair Value Through Other Comprehensive Income](index=24&type=section&id=7%20Equity%20Investments%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) This category includes the company's designated unlisted equity securities, whose fair value is recognized through other comprehensive income - The company's designated unlisted equity securities are measured at **fair value through other comprehensive income**[58](index=58&type=chunk) [8 Investments Measured at Fair Value Through Profit or Loss](index=24&type=section&id=8%20Investments%20Measured%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) This category primarily comprises equity securities listed in Hong Kong, with fair values determined by market quotations, including Alibaba Group Holding Limited shares valued at approximately HKD 80,044,000, representing about 13.0% of the company's total assets Investments Measured at Fair Value Through Profit or Loss | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Equity securities listed in Hong Kong | 128,157 | 86,251 | - The fair value of Hong Kong-listed equity securities is determined by **market quotations**[59](index=59&type=chunk) - The above balance includes **729,000 shares** of Alibaba Group Holding Limited, with a market value of approximately **HKD 80,044,000** (representing approximately **13.0%** of the company's total assets)[59](index=59&type=chunk) [9 Cash and Bank Balances](index=24&type=section&id=9%20Cash%20and%20Bank%20Balances) Bank cash earns interest at daily bank deposit rates, with time deposits ranging from one day to one month, and the carrying amount of cash and bank balances approximates their fair value - Bank cash earns interest at **floating rates based on daily bank deposit rates**[60](index=60&type=chunk) - Time deposits during the period ranged from **one day to one month**[60](index=60&type=chunk) - The carrying amount of cash and bank balances approximates their fair value[60](index=60&type=chunk) [10 Lease Liabilities](index=25&type=section&id=10%20Lease%20Liabilities) Lease liabilities are measured at the present value of unpaid lease payments, primarily for office properties; the company faces no significant liquidity risk regarding lease liabilities, with total cash outflows for leases amounting to HKD 480,000 during the period Lease Liabilities Payable | Lease Liabilities Payable | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within one year | 934 | 907 | | After one year but within two years | – | 474 | | After two years but within five years | – | – | | **Total** | **934** | **1,381** | - The company faces **no significant liquidity risk** regarding its lease liabilities[62](index=62&type=chunk) - Total cash outflows for leases for the period ended June 30, 2025, amounted to **HKD 480,000** (2024: HKD 480,000)[62](index=62&type=chunk) [11 Share Capital](index=26&type=section&id=11%20Share%20Capital) The company's authorized share capital consists of 100,000,000,000 ordinary shares of HKD 0.01 each, with 12,801,578,629 ordinary shares of HKD 0.01 each issued and fully paid, totaling HKD 128,016 thousand Share Capital | Type of Share Capital | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Authorized share capital (100,000,000,000 shares of HKD 0.01 each) | 1,000,000 | 1,000,000 | | Issued and fully paid share capital (12,801,578,629 shares of HKD 0.01 each) | 128,016 | 128,016 | [12 Share Options](index=26&type=section&id=12%20Share%20Options) The company's share option scheme adopted in 2014 expired on June 3, 2024; as of June 30, 2025, 90,000,000 unexercised share options held by Directors remained, with an exercise price of HKD 0.0497, and no options were granted, exercised, cancelled, or lapsed during the period - The company adopted a share option scheme on **May 22, 2014**, which **expired on June 3, 2024**[64](index=64&type=chunk)[65](index=65&type=chunk) Unexercised Share Options | Grantee | Number of unexercised share options as at June 30, 2025 | Exercise price per share option (HKD) | | :--- | :--- | :--- | | Zhou Zan | 30,000,000 | 0.0497 | | An Jing | 30,000,000 | 0.0497 | | Qin Han | 30,000,000 | 0.0497 | | **Total** | **90,000,000** | | - For the periods ended June 30, 2025, and 2024, **no share options were granted, exercised, cancelled, or lapsed**[67](index=67&type=chunk) [13 Related Party Transactions](index=29&type=section&id=13%20Related%20Party%20Transactions) Related party transactions include investment management fees paid to Guojin Securities (Hong Kong) Limited (2025) and Evergrande Securities (Hong Kong) Limited (2024), and rent paid to New Era Group (China) Limited, controlled by Mr. Xiang Xin, with key management personnel remuneration remaining stable Related Party Transactions | Transaction Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Investment management fees paid to Guojin Securities (Hong Kong) Limited | 160 | – | | Investment management fees paid to Evergrande Securities (Hong Kong) Limited | – | 240 | | Rent paid to New Era Group (China) Limited | 480 | 480 | | Remuneration of key management personnel | 300 | 300 | - Mr. Xiang Xin, a Director of the company, has **control over New Era Group**[69](index=69&type=chunk) [14 Fair Value Measurement](index=30&type=section&id=14%20Fair%20Value%20Measurement) The company uses a fair value hierarchy (Levels 1, 2, 3) for fair value measurement; for Level 3 instruments with significant unobservable inputs, a third-party qualified valuer is engaged, primarily using the market approach (P/B ratio) and cost approach (net asset value) - Inputs for fair value measurement are categorized into three levels: **Level 1** (quoted prices in active markets), **Level 2** (observable inputs, either directly or indirectly), and **Level 3** (unobservable inputs)[71](index=71&type=chunk) Fair Value Measurement of Level 3 Instruments | Details | Valuation Technique | Input Data | Range | | :--- | :--- | :--- | :--- | | Unlisted equity securities classified as equity investments at fair value through other comprehensive income | Market approach | Price-to-book ratio | 1.88-3.00 | | | | Discount for lack of marketability | 16% | | | Cost approach | Net asset value | Net asset value with reference to the management accounts of the investee companies | - The company engages a **third-party qualified valuer** for Level 3 fair value measurements[74](index=74&type=chunk) [15 Contingent Liabilities](index=31&type=section&id=15%20Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the company had no significant contingent liabilities - As of June 30, 2025, and December 31, 2024, the company had **no significant contingent liabilities**[75](index=75&type=chunk) [16 Capital Commitments](index=31&type=section&id=16%20Capital%20Commitments) Other than those disclosed in this interim report, the company had no other significant capital commitments as of June 30, 2025, and December 31, 2024 - Other than those disclosed in this interim report, the company had **no other significant capital commitments** as of June 30, 2025, and December 31, 2024[76](index=76&type=chunk) [17 Interim Dividend](index=31&type=section&id=17%20Interim%20Dividend) The Directors do not recommend paying an interim dividend for the six months ended June 30, 2025 (2024: nil) - The Directors **do not recommend paying an interim dividend** for the six months ended June 30, 2025 (2024: nil)[77](index=77&type=chunk)

[Company Overview](index=1&type=section&id=Company%20Overview) This section provides an overview of the company's fundamental information, board structure, and administrative details [Basic Company Information](index=1&type=section&id=Basic%20Company%20Information) This chapter provides the stock code of San Miguel Brewery Hong Kong Limited and the reporting period of this interim report - Company Name: **San Miguel Brewery Hong Kong Limited**[1](index=1&type=chunk) - Stock Code: **0236**[2](index=2&type=chunk) - Reporting Period: **January to June 2025**[2](index=2&type=chunk) [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This chapter details the board composition, including appointments and resignations, and outlines committee memberships and chair changes - Board Chairman is **Ramon S. Ang** (Non-executive Director), Vice Chairman is **Carlos Antonio M. Berba** (Non-executive Director), and Executive Director is **Chan Weng Kheong**[3](index=3&type=chunk)[5](index=5&type=chunk) - **Aurora T. Calderon** was appointed Non-executive Director on **February 24, 2025**[3](index=3&type=chunk)[5](index=5&type=chunk) - **Alonzo Q. Ancheta** resigned as Independent Non-executive Director on **July 28, 2025**, and **Maria Aileen A. Sazon** was appointed on the same day[3](index=3&type=chunk)[5](index=5&type=chunk) - Audit Committee Chairman is **David K.P. Li**, with **Reynato S. Puno** appointed on **July 28, 2025**, to replace Alonzo Q. Ancheta[4](index=4&type=chunk)[5](index=5&type=chunk) - Remuneration Committee Chairman is **Reynato S. Puno**[4](index=4&type=chunk)[5](index=5&type=chunk) - Nomination Committee Chairman is **Thelmo Luis O. Cunanan**, replacing Alonzo Q. Ancheta on **July 28, 2025**[4](index=4&type=chunk)[6](index=6&type=chunk) [Company Administrative Information](index=3&type=section&id=Company%20Administrative%20Information) This chapter provides details on the company secretary, auditor, legal counsel, registered office, share registrar, and principal bankers - Company Secretary: **Lo Chi Yip**[5](index=5&type=chunk)[6](index=6&type=chunk) - Auditor: **KPMG**[8](index=8&type=chunk)[10](index=10&type=chunk) - Principal Bankers include **Agricultural Bank of China, ANZ Bank, Bank of China (Hong Kong), and The Hongkong and Shanghai Banking Corporation**[9](index=9&type=chunk)[10](index=10&type=chunk) - Mr. **Yoshinori Inazumi** resigned as Non-executive Director effective **September 1, 2025**, and Mr. **Tatsuya Nagafuji** was appointed as his successor[9](index=9&type=chunk)[10](index=10&type=chunk) [Chairman's Statement](index=6&type=section&id=Chairman%27s%20Statement) This section presents the Chairman's review of the company's financial performance, business operations, and future outlook [Financial Results](index=6&type=section&id=Financial%20Results) The company reported a consolidated profit of HKD 51.1 million for H1 2025, a 33% increase, with revenue growing 3.2% to HKD 390 million Key Financial Data for H1 2025 (HKD million) | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Consolidated Profit | 51.1 | 38.5 | 32.7% | | Profit Attributable to Equity Holders | 49.6 | 37.6 | 31.9% | | Consolidated Revenue | 390.3 | 378.1 | 3.2% | | Gross Profit | 155.7 | 139.5 | 11.6% | | Gross Profit Margin | 39.9% | 36.9% | +3.0pp | | Cash and Bank Balances (as of June 30) | 249.6 | 216.5 (as of Dec 31) | 15.3% | | Total Loans (as of June 30) | 3.6 | 3.5 (as of Dec 31) | 2.9% | | Total Net Assets (as of June 30) | 668.6 | 634.8 (as of Dec 31) | 5.3% | | Gearing Ratio (as of June 30) | 0.01 | 0.01 (as of Dec 31) | 0% | - The Board resolved not to declare a dividend for the six months ended **June 30, 2025**[15](index=15&type=chunk)[17](index=17&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) This chapter reviews business performance in Hong Kong and South China, highlighting sales trends, operational profitability, and marketing efforts [Hong Kong Operations](index=7&type=section&id=Hong%20Kong%20Operations) Hong Kong operations saw strong export growth and improved operating profit despite local market challenges and declining private consumption - Hong Kong's economy grew by **3%** in real GDP in Q1 2025, but private consumption contracted by **1%**, and retail sales decreased by **4%**[18](index=18&type=chunk)[23](index=23&type=chunk) - The company's total local sales fell by **4%** in H1, mirroring the overall beer industry's **4%** decline; however, export sales grew significantly, leading to a **14%** increase in total sales[19](index=19&type=chunk)[23](index=23&type=chunk) - Operating profit significantly increased, benefiting from **higher sales volume, improved export margins, reduced fixed costs, and increased rental income**[19](index=19&type=chunk)[23](index=23&type=chunk) - Launched "Strong Hong Kong, Strong San Miguel" TV advertisements and conducted promotions in convenience stores, Chinese restaurants, grocery stores, and supermarkets, including **purchase-with-gift offers and limited-edition canned products**[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) [South China Operations](index=8&type=section&id=South%20China%20Operations) South China operations saw local sales growth and improved operating profit despite a decline in exports, supported by marketing activities - China's economy grew by **5%** in Q1 2025, driven by **recovering domestic consumption, increased local government investment, and strong export performance**[25](index=25&type=chunk)[31](index=31&type=chunk) - San Miguel (Guangdong) Brewery Co., Ltd. (SMGB) recorded a **3%** increase in local sales in H1 2025, but export volume decreased by **3%**[26](index=26&type=chunk)[31](index=31&type=chunk) - SMGB achieved an operating profit of **RMB 16.9 million**, a **23%** year-on-year increase, primarily due to **higher local sales, improved margins from a more favorable local sales mix, and reduced variable costs**[26](index=26&type=chunk)[31](index=31&type=chunk) - Launched San Miguel Beer large bottle gift redemption, full-market promotional campaigns for San Miguel Beer and San Miguel Light, Lunar New Year themed activities, and market launches for Dragon Beer Yue X 500ml cans and locally produced Red Horse Beer 500ml 12-can gift boxes[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Outlook](index=9&type=section&id=Outlook) The company maintains cautious optimism for market growth while addressing financial conditions, consumer shifts, and geopolitical uncertainties - Maintains **cautious optimism** for sustained growth in key markets, but remains mindful of **tightening financial conditions, evolving consumer behavior, and geopolitical uncertainties**[34](index=34&type=chunk)[37](index=37&type=chunk) - Strategic focus will continue on **strengthening brand equity, enhancing operational efficiency, and deepening consumer engagement through targeted sales and marketing activities**[35](index=35&type=chunk)[37](index=37&type=chunk) - Will continue to closely monitor market dynamics and implement strategies to **support sales recovery in Hong Kong, maintain local sales growth in South China, effectively manage costs, and drive overall performance**[35](index=35&type=chunk)[37](index=37&type=chunk) [Additional Information Required by Main Board Listing Rules](index=10&type=section&id=Additional%20Information%20provided%20in%20accordance%20with%20the%20Main%20Board%20Listing%20Rules) This section provides additional disclosures mandated by the Listing Rules, covering dividends, directors' interests, and corporate governance [Interim Dividend](index=10&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for **2025** (2024: nil)[39](index=39&type=chunk)[42](index=42&type=chunk) [Interim Results Review](index=10&type=section&id=Interim%20Results%20Review) The interim results for the six months ended June 30, 2025, were unaudited but reviewed by the Audit Committee - The interim results for the six months ended **June 30, 2025**, were unaudited but reviewed by the company's Audit Committee on **July 28, 2025**[40](index=40&type=chunk)[43](index=43&type=chunk) [Directors' Interests](index=10&type=section&id=Directors%27%20Interests) This section discloses directors' interests in the company's and its associated companies' issued shares as of June 30, 2025 Directors' Interests in the Company's Issued Shares (as of June 30, 2025) | Name | Number of Shares Held | Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | | David K. P. Li | 12,936,264 | 3.46% | Directors' Interests in Top Frontier Investment Holdings, Inc. Issued Shares (as of June 30, 2025) | Name | Share Class | Par Value (Philippine Peso) | Directly Held (shares) | Indirectly Held (shares) | Total Shares Held | Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ramon S. Ang | Ordinary Share | 1.00 | 75,887 | 131,658,451 | 131,734,338 | 34.860852% | | Carlos Antonio M. Berba | Ordinary Share | 1.00 | 364 | — | 364 | 0.000096% | | Aurora T. Calderon | Ordinary Share | 1.00 | 2,360 | — | 2,360 | 0.000625% | Directors' Interests in San Miguel Corporation Issued Shares (as of June 30, 2025) | Name | Share Class | Par Value (Philippine Peso) | Directly Held (shares) | Indirectly Held (shares) | Total Shares Held | Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ramon S. Ang | Ordinary Share | 5.00 | 1,345,429 | 373,623,796 | 374,969,225 | 9.729852% | | Carlos Antonio M. Berba | Ordinary Share | 5.00 | 2,600 | — | 2,600 | 0.000067% | | Aurora T. Calderon | Ordinary Share | 5.00 | 22,600 | — | 22,600 | 0.000586% | | Reynato S. Puno | Ordinary Share | 5.00 | 5,000 | — | 5,000 | 0.000130% | - As of **June 30, 2025**, no director held any interests in the relevant shares of the Company and its associated corporations as defined under Part XV of the Securities and Futures Ordinance. All interests in the shares of the Company and its associated corporations were long positions[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) [Substantial Shareholders' Interests in Shares and Underlying Shares](index=14&type=section&id=Substantial%20Shareholders%27%20Interests%20in%20Shares%20and%20Underlying%20Shares) This section discloses substantial shareholders holding 5% or more of the company's issued ordinary shares as of June 30, 2025 Substantial Shareholders' Interests in the Company's Issued Ordinary Shares (as of June 30, 2025) | Substantial Shareholder | Number of Ordinary Shares Held | Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | | Iñigo Zobel | 245,720,800 | 65.78% | | Top Frontier Investment Holdings, Inc. | 245,720,800 | 65.78% | | San Miguel Corporation | 245,720,800 | 65.78% | | Kirin Holdings Company, Limited | 245,720,800 | 65.78% | | San Miguel Food and Beverage, Inc. | 245,720,800 | 65.78% | | San Miguel Brewery Inc. | 245,720,800 | 65.78% | | San Miguel Brewing International Limited | 245,720,800 | 65.78% | | Neptunia Corporation Limited | 245,720,800 | 65.78% | | Cheung Kong (Holdings) Limited | 23,703,000 | 6.34% | | CK Hutchison Holdings Limited | 23,703,000 | 6.34% | - **Iñigo Zobel, Top Frontier, San Miguel Corporation, SMFB, Kirin, San Miguel Brewery, and San Miguel Brewing International** are all deemed to hold interests in the Company indirectly through **Neptunia Corporation Limited**[72](index=72&type=chunk) - **Cheung Kong (Holdings) Limited and CK Hutchison Holdings Limited** are deemed to have interests in the Company's shares held by **Conroy Assets Limited and Hamstar Profits Limited**[70](index=70&type=chunk)[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=15&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended **June 30, 2025**[73](index=73&type=chunk)[76](index=76&type=chunk) [Corporate Governance](index=15&type=section&id=Corporate%20Governance) The company complied with the Corporate Governance Code, with one deviation, and adopted a code of conduct for securities transactions - The Company has adopted the provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the six months ended **June 30, 2025**, with the following deviation: the Company will arrange board and other meetings in accordance with Code Provisions C.5.1 and C.2.7 during the current year[74](index=74&type=chunk)[77](index=77&type=chunk) - The Company has adopted a code of conduct regarding securities transactions and dealings based on the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and directors have confirmed their compliance in writing[74](index=74&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, assists the Board in financial reporting, risk management, and compliance - As of the report date, the Audit Committee comprises three independent non-executive directors: Mr. **Reynato S. Puno** (appointed effective **July 28, 2025**, to replace Mr. Alonzo Q. Ancheta), Mr. **Thelmo Luis O. Cunanan**, and the Audit Committee Chairman, Sir **David K.P. Li**[80](index=80&type=chunk)[84](index=84&type=chunk) - The Committee assists the Board in fulfilling its corporate governance and oversight responsibilities regarding **financial reporting systems, risk management and internal control systems, internal and external audit functions, and compliance with tax, legal, and regulatory requirements**[81](index=81&type=chunk)[84](index=84&type=chunk) - The Committee is authorized by the Board to investigate any activity within its terms of reference, with **unrestricted access to appropriate individuals, records, internal and external auditors, risk assessments and commitments, and senior management**[81](index=81&type=chunk)[84](index=84&type=chunk) [Remuneration Committee](index=16&type=section&id=Remuneration%20Committee) The Remuneration Committee, chaired by Reynato S. Puno, advises the Board on compensation policies to attract and retain executives and directors - As of the report date, the Remuneration Committee comprises **three independent non-executive directors and two non-executive directors**, chaired by Independent Non-executive Director Mr. **Reynato S. Puno**[83](index=83&type=chunk)[86](index=86&type=chunk) - The Committee's primary purpose is to support and advise the Board in ensuring the company has **coherent, formal, and transparent remuneration policies and practices** to fairly and responsibly reward executives for the benefit of shareholders[86](index=86&type=chunk) [Nomination Committee](index=17&type=section&id=Nomination%20Committee) The Nomination Committee, chaired by Thelmo Luis O. Cunanan, supports the Board in ensuring optimal composition by evaluating skills and identifying candidates - As of the report date, the Nomination Committee comprises **four independent non-executive directors and one non-executive director**, chaired by Independent Non-executive Director Mr. **Thelmo Luis O. Cunanan** (appointed effective **July 28, 2025**, to replace Mr. Alonzo Q. Ancheta)[88](index=88&type=chunk)[91](index=91&type=chunk) - The Committee's primary purpose is to support the Board in fulfilling its duties by **assessing required skills, evaluating the extent to which those skills are represented, establishing procedures for reviewing individual and overall board performance, and identifying suitable candidates for board appointment**[92](index=92&type=chunk) [Consolidated Income Statement — Unaudited](index=18&type=section&id=Consolidated%20Income%20Statement%20%E2%80%94%20Unaudited) The company reported H1 2025 consolidated revenue of HKD 390.29 million, a 3.22% increase, with profit for the period rising 32.66% to HKD 51.09 million Consolidated Income Statement Summary (for the six months ended June 30, 2025) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 390,286 | 378,094 | 3.22% | | Cost of sales | (234,559) | (238,560) | -1.68% | | Gross profit | 155,727 | 139,534 | 11.59% | | Other net income | 33,530 | 31,743 | 5.63% | | Selling and distribution expenses | (86,553) | (84,583) | 2.33% | | Administrative expenses | (35,748) | (39,971) | -10.56% | | Other operating expenses | (5,207) | (4,354) | 19.60% | | Operating profit | 61,749 | 42,369 | 45.76% | | Finance costs | (185) | (231) | -19.91% | | Profit before taxation | 61,564 | 42,138 | 46.11% | | Income tax expense | (10,475) | (3,628) | 188.73% | | Profit for the period | 51,089 | 38,510 | 32.66% | | Profit attributable to equity holders of the Company | 49,644 | 37,618 | 31.95% | | Non-controlling interests | 1,445 | 892 | 62.00% | | Basic earnings per share (Cents) | 13.3 | 10.1 | 31.68% | [Consolidated Statement of Comprehensive Income — Unaudited](index=19&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income%20%E2%80%94%20Unaudited) Profit for the period was HKD 51.09 million, with total comprehensive income increasing 38.84% to HKD 52.48 million, driven by foreign exchange differences Consolidated Statement of Comprehensive Income Summary (for the six months ended June 30, 2025) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 51,089 | 38,510 | 32.66% | | Other comprehensive income (after tax) | 1,391 | (711) | -295.64% | | Total comprehensive income for the period | 52,480 | 37,799 | 38.84% | | Attributable to equity holders of the Company | 51,396 | 36,745 | 39.86% | | Non-controlling interests | 1,084 | 1,054 | 2.85% | - Other comprehensive income was primarily affected by **exchange differences arising from the translation of financial statements of overseas subsidiaries and monetary items forming the Group's investment in subsidiaries**, resulting in a positive income of **HKD 1,391 thousand** in 2025, compared to a negative income of **HKD 711 thousand** in 2024[98](index=98&type=chunk) [Consolidated Statement of Financial Position — Unaudited](index=20&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20%E2%80%94%20Unaudited) Total net assets increased by 5.32% to HKD 669 million as of June 30, 2025, driven by higher cash and receivables from related parties Consolidated Statement of Financial Position Summary (as of June 30, 2025) | Metric | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Property, plant and equipment | 250,719 | 247,963 | 1.11% | | Investment properties | 96,897 | 98,748 | -1.87% | | Intangible assets | 4,771 | 4,771 | 0.00% | | Other receivables | 22,266 | 18,378 | 21.16% | | Deferred tax assets | 28,969 | 34,742 | -16.62% | | **Current assets** | | | | | Inventories | 70,443 | 82,077 | -14.17% | | Trade and other receivables | 36,852 | 40,222 | -8.38% | | Amounts due from holding company and fellow subsidiaries | 37,141 | 14,228 | 161.05% | | Cash and bank balances | 249,598 | 216,520 | 15.28% | | **Current liabilities** | | | | | Trade and other payables | (71,261) | (70,409) | 1.21% | | Loans from related companies | (3,557) | (3,503) | 1.54% | | Lease liabilities (current) | (678) | (416) | 63.00% | | **Non-current liabilities** | | | | | Retirement benefit obligations | (9,631) | (11,524) | -16.59% | | Other payables (non-current) | (25,040) | (23,772) | 5.33% | | Lease liabilities (non-current) | (1,784) | (2,154) | -17.27% | | **Total net assets** | 668,595 | 634,794 | 5.32% | | **Total equity** | 668,595 | 634,794 | 5.32% | [Consolidated Statement of Changes in Equity — Unaudited](index=21&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity%20%E2%80%94%20Unaudited) Total equity was HKD 669 million as of June 30, 2025, with profit attributable to equity holders at HKD 49.64 million Consolidated Statement of Changes in Equity Summary (as of June 30, 2025) | Metric | June 30, 2025 (HKD thousand) | January 1, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Share capital | 252,524 | 252,524 | 0.00% | | Capital reserve | 112,970 | 112,970 | 0.00% | | Exchange fluctuation reserve | 68,929 | 69,229 | -0.43% | | Retained earnings | 255,493 | 261,849 | -2.43% | | Total equity attributable to equity holders of the Company | 689,916 | 696,572 | -0.96% | | Non-controlling interests | (21,321) | (24,100) | -11.53% | | Total equity | 668,595 | 672,472 | -0.58% | - For the six months ended **June 30, 2025**, profit for the period was **HKD 49,644 thousand**, and other comprehensive income was **HKD 1,752 thousand**, resulting in a total comprehensive income attributable to equity holders of the Company of **HKD 51,396 thousand**[104](index=104&type=chunk) - Dividends of **HKD 18,679 thousand** for the previous financial year were distributed in both **2025 and 2024**[104](index=104&type=chunk) [Condensed Consolidated Cash Flow Statement — Unaudited](index=22&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement%20%E2%80%94%20Unaudited) Net cash inflow from operating activities increased by 54.21% to HKD 57.06 million, with cash and cash equivalents at period-end reaching HKD 249.6 million Condensed Consolidated Cash Flow Statement Summary (for the six months ended June 30, 2025) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cash inflow from operating activities | 58,968 | 39,499 | 49.30% | | PRC enterprise income tax paid | (1,905) | (2,496) | -23.76% | | Net cash inflow from operating activities | 57,063 | 37,003 | 54.21% | | Net cash outflow from investing activities | (8,114) | (1,799) | 351.03% | | Net cash outflow from financing activities | (18,850) | (19,270) | -2.18% | | Net increase in cash and cash equivalents | 30,099 | 15,934 | 88.90% | | Effect of exchange rate changes | 2,979 | 1,390 | 114.32% | | Cash and cash equivalents at end of period | 249,598 | 197,303 | 26.50% | - Net cash inflow from operating activities significantly increased by **54.21%**, reaching **HKD 57,063 thousand**[106](index=106&type=chunk) - Net cash outflow from investing activities substantially increased by **351.03%**, to **HKD 8,114 thousand**[106](index=106&type=chunk) [Notes to the Unaudited Interim Financial Report](index=23&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes to the unaudited interim financial report, covering accounting policies, segment information, and financial disclosures [Basis of Preparation](index=23&type=section&id=Basis%20of%20Preparation) The interim financial report is prepared in accordance with HKAS 34 and Listing Rules, using consistent accounting policies, and has been reviewed by the Audit Committee - The interim financial report is prepared in accordance with the **Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited** and **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants[109](index=109&type=chunk)[114](index=114&type=chunk) - The report adopts accounting policies consistent with the **2024 annual financial statements**, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[110](index=110&type=chunk)[114](index=114&type=chunk) - This interim financial report is unaudited but has been reviewed by the Company's Audit Committee[113](index=113&type=chunk)[115](index=115&type=chunk) [Changes in Accounting Policies](index=24&type=section&id=Changes%20in%20Accounting%20Policies) New and revised HKFRSs effective this period had no impact on the Group's accounting policies, and no early adoption of new standards occurred - The Hong Kong Institute of Certified Public Accountants has issued several new and revised Hong Kong Financial Reporting Standards that are effective for the Group's current accounting period, none of which have had an impact on the Group's accounting policies[119](index=119&type=chunk) - The Group has not early adopted any new standards or interpretations that are not yet effective for the current accounting period[119](index=119&type=chunk) [Revenue and Segment Reporting](index=24&type=section&id=Revenue%20and%20Segment%20Reporting) All group revenue is from beer manufacturing and distribution, with Hong Kong segment revenue up 6.23% and China segment operating profit up 20.51% - The Group's principal business is the **manufacture and distribution of bottled, canned, and draught beer**, with all revenue derived from this business[117](index=117&type=chunk)[120](index=120&type=chunk) Segment Revenue and Operating Profit (for the six months ended June 30, 2025) | Segment | 2025 Revenue (HKD thousand) | 2024 Revenue (HKD thousand) | Revenue Change (%) | 2025 Operating Profit (HKD thousand) | 2024 Operating Profit (HKD thousand) | Operating Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 250,054 | 235,383 | 6.23% | 37,357 | 21,755 | 71.72% | | Mainland China | 140,232 | 142,711 | -1.74% | 18,277 | 15,167 | 20.51% | | Total | 390,286 | 378,094 | 3.22% | 55,634 | 36,922 | 50.68% | Revenue by Geographical Location (for the six months ended June 30, 2025) | Region | 2025 Revenue (HKD thousand) | 2024 Revenue (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong (place of incorporation) | 112,136 | 118,620 | -5.47% | | Mainland China | 32,045 | 30,902 | 3.69% | | Philippines | 240,960 | 222,454 | 8.32% | | Others | 5,145 | 6,118 | -15.90% | | **Total** | **390,286** | **378,094** | **3.22%** | [Profit before Taxation](index=28&type=section&id=Profit%20before%20Taxation) Profit before taxation for H1 2025 increased by 46.11% to HKD 61.56 million, with key expense items disclosed Components of Profit before Taxation (for the six months ended June 30, 2025) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 185 | 231 | -19.91% | | Staff costs | 77,714 | 74,853 | 3.82% | | Depreciation (property, plant and equipment) | 3,468 | 3,968 | -12.61% | | Depreciation (right-of-use assets) | 6,871 | 8,155 | -15.75% | | Cost of inventories | 233,419 | 237,896 | -1.88% | | Impairment losses on trade and other receivables | 150 | 186 | -19.35% | - For the six months ended **June 30, 2025**, profit before taxation was **HKD 61,564 thousand**, representing a **46.11%** increase from **HKD 42,138 thousand** in the same period of 2024[94](index=94&type=chunk) [Income Tax](index=28&type=section&id=Income%20Tax) Income tax expense significantly increased to HKD 10.48 million due to deferred tax movements, with PRC operations taxed at 25% Components of Income Tax (for the six months ended June 30, 2025) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax — Mainland China | 4,601 | 3,628 | 26.82% | | Deferred tax — origination and reversal of temporary differences | 5,874 | — | N/A | | **Total Income Tax** | **10,475** | **3,628** | **188.73%** | - For both **2025 and 2024**, no provision for Hong Kong Profits Tax was made for the Company and other Hong Kong subsidiaries, as accumulated tax losses exceeded estimated assessable profits or entities incurred losses[139](index=139&type=chunk)[141](index=141&type=chunk) - The Group's operations in the People's Republic of China are subject to the **Enterprise Income Tax Law of the People's Republic of China**, with a standard tax rate of **25%**[140](index=140&type=chunk)[141](index=141&type=chunk) [Dividends](index=29&type=section&id=Dividends) The Board resolved not to declare an interim dividend for 2025, while the final dividend for the previous fiscal year was HKD 18.68 million - The Board resolved not to declare an interim dividend for **2025** (2024: nil)[144](index=144&type=chunk)[145](index=145&type=chunk) Dividends Paid (for the six months ended June 30, 2025) | Dividend Type | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Final dividend for previous financial year (HKD 0.05 per ordinary share) | 18,679 | 18,679 | [Earnings per Share](index=29&type=section&id=Earnings%20per%20Share) Basic earnings per share for H1 2025 increased to 13.3 cents, with no diluted earnings per share presented due to the absence of dilutive potential ordinary shares Earnings per Share (for the six months ended June 30, 2025) | Metric | 2025 (Cents) | 2024 (Cents) | Change (%) | | :--- | :--- | :--- | :--- | | Basic earnings per share | 13.3 | 10.1 | 31.68% | - Diluted earnings per share are not presented as there are no dilutive potential ordinary shares in issue for the Company[148](index=148&type=chunk)[149](index=149&type=chunk) [Non-current Assets](index=30&type=section&id=Non-current%20Assets) Total net book value of property, plant, and equipment and investment properties was HKD 347.62 million as of June 30, 2025 Net Book Value of Non-current Assets (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | January 1, 2025 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment | 250,719 | 247,963 | 1.11% | | Investment properties | 96,897 | 98,748 | -1.87% | | **Total** | **347,616** | **346,711** | **0.26%** | - In H1 2025, additions to property, plant and equipment amounted to **HKD 11,292 thousand**, and additions to investment properties amounted to **HKD 514 thousand**[153](index=153&type=chunk) [Inventories](index=30&type=section&id=Inventories) Total inventories decreased by 14.17% to HKD 70.44 million as of June 30, 2025, with reductions in finished goods, work-in-progress, and materials Components of Inventories (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finished goods and work-in-progress | 37,340 | 45,985 | -18.80% | | Materials and supplies | 33,103 | 36,092 | -8.28% | | **Total** | **70,443** | **82,077** | **-14.17%** | [Trade and Other Receivables](index=31&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables slightly increased to HKD 59.12 million as of June 30, 2025, with most trade receivables being current Trade and Other Receivables (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 29,974 | 29,749 | 0.76% | | Other trade receivables, deposits and prepayments | 29,144 | 28,851 | 1.02% | | **Total** | **59,118** | **58,600** | **0.89%** | Aging of Trade Receivables (as of June 30, 2025) | Aging | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Not yet due | 27,873 | 26,942 | 3.46% | | Less than one month overdue | 1,249 | 1,857 | -32.74% | | 1 to 3 months overdue | 446 | 412 | 8.25% | | 3 to 12 months overdue | 406 | 538 | -24.49% | | **Total** | **29,974** | **29,749** | **0.76%** | - Management maintains a credit policy and continuously monitors credit risk, with credit terms determined based on individual customer's financial standing[161](index=161&type=chunk)[162](index=162&type=chunk) [Cash and Cash Balances](index=32&type=section&id=Cash%20and%20Cash%20Balances) Total cash and bank balances increased by 15.28% to HKD 249.6 million as of June 30, 2025, primarily due to a significant rise in bank balances and cash Components of Cash and Bank Balances (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Bank deposits with original maturity within three months | 121,813 | 145,378 | -16.21% | | Bank deposits with original maturity greater than three months | — | 10,800 | -100.00% | | Bank balances and cash | 127,785 | 60,342 | 111.77% | | **Total** | **249,598** | **216,520** | **15.28%** | [Trade and Other Payables](index=32&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables slightly increased to HKD 96.3 million as of June 30, 2025, with most trade payables due within two to three months Components of Trade and Other Payables (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 28,745 | 36,166 | -20.52% | | Other payables and accrued expenses | 67,556 | 58,015 | 16.45% | | **Total** | **96,301** | **94,181** | **2.25%** | Aging of Trade Payables (as of June 30, 2025) | Aging | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Not yet due and less than one month overdue | 28,731 | 36,144 | -20.51% | | 1 to 3 months overdue | 6 | 15 | -60.00% | | 3 to 6 months overdue | 6 | 7 | -14.29% | | More than 6 months overdue | 2 | — | N/A | | **Total** | **28,745** | **36,166** | **-20.52%** | - The Group's general credit terms from suppliers are due within **one to two months** from the invoice date[169](index=169&type=chunk) [Capital Commitments](index=33&type=section&id=Capital%20Commitments) Total capital commitments not provided for in the interim financial report amounted to HKD 29.52 million as of June 30, 2025 Capital Commitments (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Contracted | 13,803 | 2,836 | 386.64% | | Approved but not contracted | 15,720 | 27,555 | -42.95% | | **Total** | **29,523** | **30,391** | **-2.86%** | [Material Related Party Transactions](index=33&type=section&id=Material%20Related%20Party%20Transactions) The Group engaged in various material related party transactions, including purchases, sales, royalty fees, and interest expenses, conducted on agreed terms Material Related Party Transactions (for the six months ended June 30, 2025) | Transaction Type | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Purchases from intermediate holding company | 585 | 467 | 25.27% | | Purchases from fellow subsidiaries | 478 | 2,161 | -77.97% | | Purchases from related companies | 11,607 | 10,640 | 9.09% | | Sales to intermediate holding company | 240,960 | 222,454 | 8.32% | | Sales to fellow subsidiaries | — | 9 | -100.00% | | Royalty fees paid to intermediate holding company | 1,362 | 664 | 105.12% | | Interest expense on loans from related companies | 77 | 135 | -42.96% | | Late payment charges paid to related companies | 133 | 131 | 1.53% | | Service fees received from intermediate holding company | 947 | 898 | 5.46% | - These transactions were conducted on terms agreed between the parties. Under the Listing Rules, these transactions (except for purchases from related companies) constitute related party transactions or continuing connected transactions[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Black Sesame International Holding Limited 黑芝麻智能國際控股有限公司* （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：2533） 截 至2025年6月30日止六個月 中期業績公告 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 業 績，連 同截至2024年6月30日 止 六 個 月 的 比 較 數 字。該 等 中 期 業 績 乃 根 據 國 際 會 計 準 則理事會頒布的國際會計準則第34號「中 期 財 務 報 告」編 製，並 已 由 本 公 司 核 數 師 羅 兵 咸 永 道 會 計 師 事 務 所 審 閱。該 等 中 期 業 績 亦 已 由 董 事 會 及 審 核 委 員 會 審 閱 及 確 認。 主要摘要 財務概要 | 截 | ...

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。 （於開曼群島註冊成立的有限公司） （股份代號：1952） Everest Medicines Limited 雲頂新耀有限公司 截 至2025年6月30日 止 六 個 月 中 期 業 績 公 告 雲 頂 新 耀 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）宣 佈 本 公 司 及 其 附 屬 公 司 截 至2025年6月30日 止 六 個 月 的 未 經 審 計 中 期 業 績。本 公 告 載 有 本 公 司 2025中 期 報 告 全 文，符 合 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）證 券 上 市 規 則 中 有 關 中 期 業 績 初 步 公 告 附 載 資 料 的 相 關 要 求 ...

Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2025, representing a 15% increase compared to the same period in 2024[3]. - Revenue for the six months ended June 30, 2025, decreased by 38.8% to RMB 119.5 million from RMB 195.1 million in the same period of 2024[28]. - Gross profit for the same period fell by 50.5%, from RMB 124.7 million to RMB 61.7 million[28]. - The profit attributable to owners of the Company turned into a loss of RMB 28.9 million, compared to a profit of RMB 5.1 million in the prior year[29]. - Basic and diluted earnings per share for the six months ended June 30, 2025, amounted to a loss of RMB 0.23[29]. - The overall business performance showed a significant downturn compared to the previous year, reflecting ongoing market challenges[31]. - The Group achieved operating revenue of RMB 119.5 million during the Reporting Period, a decline from RMB 195.1 million in the same period of 2024, with a loss attributable to owners of RMB 28.9 million compared to a profit of RMB 5.1 million in 2024[33]. - The decline in operating results during the Reporting Period was influenced by the current market environment and management changes, but the Company remains optimistic about future recovery[55]. - For the first six months of 2025, the Group's total revenue was RMB 119.5 million, a decrease of RMB 75.6 million or 38.8% compared to RMB 195.1 million in the same period of 2024[60]. Market and Customer Insights - User data indicates a growth in active customers to 1.2 million, up 20% year-over-year[3]. - The company expects a revenue guidance of RMB 1.1 billion for the full year 2025, reflecting a projected growth of 10%[3]. - Market expansion efforts include entering three new provinces in China, targeting a 25% increase in market share by the end of 2025[3]. - A new marketing strategy focusing on digital channels is projected to increase brand awareness by 30% within the next year[3]. - The focus on healthy lifestyles among consumers is expected to drive long-term growth in the Pu'er tea and Chinese tea market[51]. Operational Adjustments and Strategies - The Company is evaluating and adjusting its operational and management strategies, which has influenced business performance during the reporting period[31]. - Management adjustments during the reporting period led to transitional delays, impacting business development[31]. - The Company continues to invest resources in assessing and refining its business strategies to adapt to market conditions[31]. - The Company aims to enhance operational efficiency and market responsiveness through continuous optimization of its business operations and service architecture[37]. - The Company plans to enhance its distribution network, aiming for a 15% reduction in logistics costs by mid-2026[3]. Investments and Acquisitions - The company is investing RMB 30 million in R&D for innovative tea processing technologies aimed at enhancing product quality[3]. - The company has completed the acquisition of a local tea producer for RMB 80 million, expected to enhance supply chain efficiency[3]. - The Company signed a product exchange agreement on May 24, 2025, to swap mid-to-high-end products that had seen declining sales for higher-quality semi-finished goods and raw tea[42]. Financial Management and Fund Utilization - The company plans to issue H shares, with a total subscription of 24 million shares expected to raise HKD 59.04 million, aimed at strengthening its financial condition[56]. - The company aims to enhance fund utilization efficiency and alleviate cash flow pressure due to slow payments from front-end stores[114]. - The adjustments in fund allocation are intended to support the company's core business development and operational activities[118]. - The total planned use of reallocated net proceeds after successive changes is RMB 141.4 million, with RMB 55.7 million utilized and RMB 8.2 million remaining unutilized as of June 30, 2025[121]. Employee and Governance - As of June 30, 2025, the Group had a total of 599 employees, with employee costs amounting to RMB 38.37 million, a decrease of 32.2% compared to RMB 56.60 million for the same period in 2024[127][128]. - The Group conducts annual performance appraisals for employees, which influence salary reviews and promotion assessments[127]. - The Company has adopted the principles and code provisions of the Corporate Governance Code to enhance accountability and transparency[138]. Compliance and Regulatory Matters - The Audit Committee confirmed that the unaudited consolidated interim results for the six months ended June 30, 2025, comply with applicable accounting standards, laws, and regulations[155]. - The company reminded all Directors, Supervisors, and senior management of trading restrictions during the black-out period prior to its commencement[149]. - During the six months ended June 30, 2025, the company was not aware of any case of non-compliance with the Model Code by relevant employees[152].

[Company Information](index=3&type=section&id=Company%20Information) The company's board comprises executive, non-executive, and independent non-executive directors, with key management including the CEO and Chairperson [Board of Directors and Management](index=3&type=section&id=Board%20of%20Directors%20and%20Management) The company's board consists of executive, non-executive, and independent non-executive directors, supported by audit, remuneration, and nomination committees - Executive Directors include **Mr. Lau Kwok Chu (CEO)**, **Ms. Chu Lai Kuen (Chairperson)**, and **Mr. Chu Kin Hang**[4](index=4&type=chunk) - The Audit Committee is chaired by **Mr. Wong Tsz Chung**, the Remuneration Committee by **Mr. Chan Yu Cheong**, and the Nomination Committee by **Mr. Sin Pak Cheung**[4](index=4&type=chunk) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) The company is registered in Hong Kong with stock code 2209 and operates several e-commerce websites including YesStyle.com and AsianBeautyWholesale.com - The company's stock code is **2209**[5](index=5&type=chunk) - Key shopping websites include **www.yesstyle.com**, **www.asianbeautywholesale.com**, and **www.yesasia.com**[5](index=5&type=chunk) [Definitions and Glossary](index=4&type=section&id=Definitions%20and%20Glossary) This section defines key terms and abbreviations used in the report, ensuring a clear understanding of company entities, business platforms, geographical regions, technical terms, and financial periods - "**The Group**" refers to the Company and its subsidiaries[7](index=7&type=chunk) - "**ABW**" refers to the Group's wholesale beauty product business conducted through online platforms and offline channels[7](index=7&type=chunk) - "**Reporting Period**" or "**First Half of 2025**" refers to the six months ended June 30, 2025[10](index=10&type=chunk) - "**Mapletree Smart Robotic Warehouse**" refers to the smart warehouse located at Mapletree Tsing Yi Logistics Centre, equipped with autonomous mobile robots[9](index=9&type=chunk) [Key Highlights](index=7&type=section&id=Key%20Highlights) The company achieved significant financial and operational growth in the first half of 2025, with revenue up 49.3% and net profit up 26.7%, driven by strong beauty product sales, especially on the ABW platform, and notable performance in European markets Key Financial Indicators for H1 2025 | Indicator | H1 2025 (US$ thousand) | H1 2024 (US$ thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 243,932 | 163,348 | 49.3%▲ | | Gross Profit | 73,262 | 50,192 | 46.0%▲ | | Gross Margin | 30.0% | 30.7% | ▲ 0.7 percentage points | | Operating Profit | 18,679 | 14,164 | 31.9%▲ | | Profit for the Period | 14,075 | 11,107 | 26.7%▲ | | Net Margin | 5.8% | 6.8% | ▲ 1.0 percentage points | Operational Indicators for H1 2025 | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | YesStyle Platform Customer Count | 1,728,000 | 1,292,000 | 33.7%▲ | | ABW Online Customer Count | 4,100 | 3,900 | 5.1%▲ | | YesStyle Platform Average Order Value (US$) | 65.0 | 65.0 | – | | ABW Online Average Order Value (US$) | 2,590.8 | 1,976.8 | 31.1%▲ | | YesStyle Platform Cost Per New Customer (US$) | 13.5 | 10.5 | 28.6%▲ | | Beauty Product Revenue (US$ thousand) | 235,342 | 149,361 | 57.6%▲ | | YesStyle Mobile App Downloads | 2,538,000 | 2,264,000 | 12.1%▲ | | KOL Program Expenses (US$ thousand) | 3,814 | 2,293 | 66.3%▲ | | Revenue Generated by KOL Referrals (US$ thousand) | 44,644 | 33,934 | 31.6%▲ | Revenue by Region for H1 2025 (US$ thousand) | Region | H1 2025 (US$ thousand) | H1 2024 (US$ thousand) | Change | | :--- | :--- | :--- | :--- | | United States | 65,270 | 57,803 | 12.9%▲ | | Europe and Related Countries | 93,948 | 63,608 | 47.7%▲ | | Oceania | 18,089 | 9,747 | 85.6%▲ | | Latin America | 6,674 | 6,070 | 10.0%▲ | | Middle East | 14,614 | 5,201 | 181.0%▲ | | Rest of World | 45,337 | 20,919 | 116.7%▲ | [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's financial performance, operational highlights, strategic initiatives, and future outlook for the reporting period [Business Overview](index=9&type=section&id=Business%20Overview) The Group achieved strong revenue growth in the first half of 2025, primarily driven by increased retail and wholesale beauty product sales on YesStyle and AsianBeautyWholesale (ABW) platforms, with K-Beauty remaining a key revenue source and ABW revenue more than doubling - Revenue increased by approximately **49.3% to approximately US$243,932 thousand** (prior period: US$163,348 thousand)[34](index=34&type=chunk) - Net profit increased by **over a quarter to approximately US$14,075 thousand** from approximately US$11,107 thousand in the prior period[34](index=34&type=chunk) - Beauty products accounted for approximately **96.5% of the Group's revenue** (prior period: 91.4%), with ABW revenue more than doubling to approximately US$77,944 thousand[34](index=34&type=chunk) - YesStyle platform revenue surged by approximately **31.7% to approximately US$164,857 thousand**, driven by double-digit growth in non-core markets[34](index=34&type=chunk) [Rapid Growth in Global B2B Market and Offline Presence](index=10&type=section&id=Rapid%20Growth%20in%20Global%20B2B%20Market%20and%20Offline%20Presence) ABW business achieved rapid growth in the first half of 2025, actively expanding its global B2B market and offline retail network through the appointment of a new CEO, establishment of a Korean office and warehouse, and its debut at an international beauty exhibition - **Mr. Song Ho Won** was appointed as the new CEO of ABW in January 2025, driving expansion in international wholesale markets and offline retail networks[38](index=38&type=chunk) - A **147,000 sq. ft. warehouse** was established in South Korea, operational since April 2025, supporting rapid growth in the B2B segment[38](index=38&type=chunk) - ABW debuted at the **2025 Cosmoprof Bologna** exhibition, engaging with over 800 global B2B buyers[38](index=38&type=chunk) - ABW has established a retail channel distribution network across **North America, Europe, Latin America, and other regions worldwide**[36](index=36&type=chunk) [Non-Core Markets Continue to Perform Strongly](index=10&type=section&id=Non-Core%20Markets%20Continue%20to%20Perform%20Strongly) Non-core markets continue to contribute significantly to the Group's revenue and achieve remarkable growth, with the EU, Latin America, and Middle East regions showing particularly strong performance, and the company plans to launch more European language websites for further market expansion - Non-core markets contributed approximately **80.8% of total revenue**, an increase of approximately **58.4%**[39](index=39&type=chunk) - The EU market grew by approximately **51.5%**, accounting for **30.9% of the Group's revenue**[39](index=39&type=chunk) - Latin America and the Middle East regions grew by approximately **181.0% and 85.6%**, respectively[39](index=39&type=chunk) - A Polish language website is planned for launch in **July 2025** to expand the European market[39](index=39&type=chunk) [Social Media Marketing Initiatives](index=11&type=section&id=Social%20Media%20Marketing%20Initiatives) The Group continues to increase its investment in social media marketing, expanding its marketing team and significantly enhancing brand influence and referral revenue through its Key Opinion Leader (KOL) program, particularly with a substantial increase in KOLs on TikTok - YesStyle's TikTok KOL count increased to approximately **132,000** by the end of June 2025 (prior period: 87,000), representing a growth rate of approximately **51.7%**[43](index=43&type=chunk) - Revenue generated by KOL referrals was **US$44,644 thousand** (prior period: US$33,934 thousand), a growth rate of approximately **31.6%**[43](index=43&type=chunk) - The **Euro Supporter program** was launched in collaboration with COSRX to recruit European creators to share their K-beauty skincare journeys[41](index=41&type=chunk) [Latest Logistics Development: Opening of Second AMR Warehouse in Hong Kong](index=11&type=section&id=Latest%20Logistics%20Development%3A%20Opening%20of%20Second%20AMR%20Warehouse%20in%20Hong%20Kong) The Group opened its second Autonomous Mobile Robot (AMR) warehouse in Hong Kong, significantly enhancing its e-commerce logistics network to meet growing global demand for the K-beauty industry, with a total investment of approximately US$10,909 thousand - A second AMR warehouse, with a gross floor area of approximately **147,000 sq. ft.** and equipped with **240 AMRs**, was opened at Mapletree Smart Robotic Warehouse in Tsing Yi, Hong Kong, in May 2025[42](index=42&type=chunk) - Over **400 AMRs** are deployed across both AMR warehouses, supporting the surge in global K-beauty market demand[42](index=42&type=chunk) - The total investment for establishing the Mapletree Smart Robotic Warehouse was approximately **US$10,909 thousand**, including capital expenditure of approximately US$8,391 thousand and pre-operating expenses of approximately US$2,518 thousand[42](index=42&type=chunk) [Outlook](index=12&type=section&id=Outlook) The company is optimistic about the global expansion prospects of YesStyle and ABW, as K-Beauty, a significant player in the global beauty industry, still has substantial room for growth, laying the foundation for the company's retail and wholesale businesses - K-Beauty is increasingly becoming mainstream in the global beauty industry and still has **significant room for growth**[45](index=45&type=chunk) - The Group remains optimistic about the prospects of YesStyle and ABW and will continue to advance their **retail and wholesale global expansion**[46](index=46&type=chunk) - The Group's net margin for the reporting period was **5.8%** (prior period: 6.8%), which is still higher than the net margins for the second half and full year of 2024 (4.4% and 5.5% respectively)[44](index=44&type=chunk) [Global Momentum of K-Beauty](index=12&type=section&id=Global%20Momentum%20of%20K-Beauty) K-Beauty has become a prominent player in the global beauty industry, with South Korea's cosmetics exports surpassing the United States for the first time to rank second globally, showing significant growth particularly in non-English speaking markets in Europe and the Middle East - South Korean cosmetics exports have risen to **second globally**, surpassing the United States for the first time, trailing only France[47](index=47&type=chunk) - From January to April 2025, South Korea exported **US$3.61 billion** worth of cosmetics, exceeding the United States' US$3.57 billion[47](index=47&type=chunk) - Exports to Poland surged by **121% year-on-year to US$111.8 million**, and exports to the United Arab Emirates increased by **74% year-on-year to US$99.3 million**[48](index=48&type=chunk) [K-Beauty's Offline Store Expansion](index=13&type=section&id=K-Beauty%27s%20Offline%20Store%20Expansion) K-Beauty products' strong online presence is gradually expanding into global offline retail stores, including major high streets in the US, UK, Europe, and Latin America, with the Group actively establishing partnerships with large retailers through ABW - K-Beauty's offline presence is expanding in major high streets globally, such as **Ulta in the US, Primark and Superdrug in the UK, OVS in Italy, MiiN in Spain, Pichara in Chile, and 7-Eleven in Thailand**[51](index=51&type=chunk) - The Group, through ABW, has established partnerships with **TJX and Burlington** (collectively over 2,400 stores in the US) to curate K-Beauty products[52](index=52&type=chunk) [The Power of Storytelling: Social Media Marketing](index=13&type=section&id=The%20Power%20of%20Storytelling%3A%20Social%20Media%20Marketing) Social media marketing plays a crucial role in promoting the K-Beauty narrative, with the Group continuously investing in influencer programs, inviting international KOLs to create local content, and leveraging data to drive consumer engagement - Social media marketing plays a **crucial role** in promoting the K-Beauty narrative to resonate with target audiences and strengthen connections[53](index=53&type=chunk) - The Group is committed to investing in **influencer programs**, inviting international KOLs to create stories about K-Beauty[53](index=53&type=chunk) - Data and consumer feedback collected through social media platforms are **highly valuable for AI and data-driven consumer engagement**[54](index=54&type=chunk) [Business Flexibility: Supply Chain Management and Warehousing Capabilities](index=13&type=section&id=Business%20Flexibility%3A%20Supply%20Chain%20Management%20and%20Warehousing%20Capabilities) The Group provides a one-stop solution for K-Beauty brands, combining community marketing capabilities with flexible supply chain and warehousing solutions, significantly enhancing logistics efficiency and scalability with its second AMR warehouse in Hong Kong and additional global warehouses - The Group offers a **one-stop solution for K-Beauty brands**, combining community marketing capabilities with flexible supply chain and warehousing solutions[55](index=55&type=chunk) - With its second Autonomous Mobile Robot warehouse in Hong Kong, the Group possesses **one of Asia's most advanced e-commerce logistics networks**[55](index=55&type=chunk) - Additional warehouses in **Hong Kong, the US, South Korea, the UK, and Germany** support B2B expansion, helping to shorten delivery times, reduce shipping costs, and improve scalability[55](index=55&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) The Group achieved strong revenue growth during the reporting period, but gross and net margins slightly decreased due to increased cost of sales and operating expenses, with continuous investment in business expansion and logistics infrastructure leading to significant increases in capital expenditure and finance costs [Revenue](index=14&type=section&id=Revenue) The Group's revenue increased by 49.3% year-on-year to US$243,932 thousand, primarily driven by significant growth in YesStyle platform and ABW online sales, as well as the launch of ABW's offline business Revenue Breakdown by Business Segment | Business Segment | 2025 (US$ thousand) | % of Total Revenue | 2024 (US$ thousand) | % of Total Revenue | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Business-to-Consumer (B2C) - YesStyle Platform | 164,857 | 67.6 | 125,132 | 76.6 | 31.7%▲ | | Business-to-Consumer (B2C) - YesAsia Platform | 890 | 0.3 | 1,020 | 0.6 | ▲ 12.7% | | Business-to-Business (B2B) - ABW Online | 56,283 | 23.1 | 36,951 | 22.6 | 52.3%▲ | | Business-to-Business (B2B) - ABW Offline | 21,661 | 8.9 | – | – | N.M. | | Logistics Services | 241 | 0.1 | 245 | 0.2 | ▲ 1.6% | | Total | 243,932 | 100.0 | 163,348 | 100.0 | 49.3%▲ | [Cost of Sales](index=15&type=section&id=Cost%20of%20Sales) Cost of sales increased by 50.8% year-on-year to US$170,670 thousand, primarily due to a 2.9 percentage point increase in product costs as a percentage of revenue, reflecting a higher proportion of wholesale business with lower mark-ups Cost of Sales Breakdown | Item | 2025 (US$ thousand) | % of Revenue | 2024 (US$ thousand) | % of Revenue | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Product Costs | 122,574 | 50.2 | 77,296 | 47.3 | 58.6%▲ | | Freight Expenses | 46,867 | 19.2 | 35,104 | 21.5 | 33.5%▲ | | Packaging Materials | 1,161 | 0.5 | 696 | 0.4 | 66.8%▲ | | Direct Labor Costs | 68 | 0.1 | 60 | 0.1 | 13.3%▲ | | Total | 170,670 | 70.0 | 113,156 | 69.3 | 50.8%▲ | - Product costs as a percentage of revenue increased by approximately **2.9 percentage points to approximately 50.2%** in the reporting period (prior period: approximately 47.3%), mainly due to the increased revenue contribution from AsianBeautyWholesale, which is a wholesale business with lower mark-ups[58](index=58&type=chunk) [Gross Profit and Gross Margin](index=15&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by 46.0% year-on-year to US$73,262 thousand, but gross margin decreased by 0.7 percentage points to 30.0%, primarily impacted by the increased proportion of wholesale business Gross Profit Breakdown by Business Segment | Business Segment | 2025 (US$ thousand) | Gross Margin (%) | 2024 (US$ thousand) | Gross Margin (%) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Business-to-Consumer (B2C) - YesStyle Platform | 58,405 | 35.4 | 43,190 | 34.5 | 35.2%▲ | | Business-to-Consumer (B2C) - YesAsia Platform | 214 | 24.0 | 230 | 22.5 | ▲ 7.0% | | Business-to-Business (B2B) - ABW Online | 11,279 | 20.0 | 6,590 | 17.8 | 71.2%▲ | | Business-to-Business (B2B) - ABW Offline | 3,193 | 14.7 | – | – | N.M. | | Logistics Services | 171 | 71.0 | 182 | 74.3 | ▲ 6.0% | | Total | 73,262 | 30.0 | 50,192 | 30.7 | 46.0%▲ | - Gross margin decreased by approximately **0.7 percentage points to approximately 30.0%** (prior period: 30.7%)[61](index=61&type=chunk) [Other Income and Other Gains and Losses](index=16&type=section&id=Other%20Income%20and%20Other%20Gains%20and%20Losses) Other income and other gains and losses decreased by 49.5% year-on-year to US$359 thousand, primarily due to increased fair value losses on financial assets at fair value through profit or loss and reduced marketing income - Fair value losses on financial assets at fair value through profit or loss increased by approximately **US$243 thousand**[63](index=63&type=chunk) - Marketing income decreased by approximately **US$108 thousand or 13.1% to US$717 thousand** in the reporting period from US$825 thousand in the prior period[63](index=63&type=chunk) [Selling Expenses](index=17&type=section&id=Selling%20Expenses) Selling expenses increased by 54.0% year-on-year to US$28,703 thousand, mainly due to significant growth in marketing and promotion expenses, outsourced warehouse labor fees, payment gateway expenses, and customs duties, supporting increased revenue and sales order volume Selling Expenses Breakdown | Item | 2025 (US$ thousand) | % of Total Revenue | 2024 (US$ thousand) | % of Total Revenue | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Marketing and Promotion Expenses | 13,360 | 5.5 | 8,088 | 5.0 | 65.2%▲ | | Payment Gateway Expenses | 5,364 | 2.2 | 4,080 | 2.5 | 31.5%▲ | | Outsourced Warehouse Labor Fees | 5,168 | 2.1 | 2,938 | 1.8 | 75.9%▲ | | Warehouse Wages | 2,538 | 1.0 | 2,213 | 1.4 | 14.7%▲ | | Customs Duties | 1,218 | 0.5 | 533 | 0.3 | 128.5%▲ | | IT Network Fees | 823 | 0.3 | 696 | 0.4 | 18.2%▲ | | Outsourced Fulfillment Fees | 170 | 0.1 | 26 | – | 553.8%▲ | | Web Content and Translation Fees | 62 | 0.1 | 68 | – | ▲ 8.8% | | Total | 28,703 | 11.8 | 18,642 | 11.4 | 54.0%▲ | - Marketing and promotion expenses increased by approximately **US$5,272 thousand or 65.2%**, including expenses of approximately US$426 thousand for participating in Cosmoprof Bologna[67](index=67&type=chunk) - Customs duties increased by approximately **US$685 thousand or 128.5%**, mainly due to increased sales in Mexico and the Middle East, as well as duties for transporting inventory to US warehouses[67](index=67&type=chunk) [Administrative Expenses](index=18&type=section&id=Administrative%20Expenses) Administrative expenses increased by 45.8% year-on-year to US$26,585 thousand, primarily due to higher staff costs, depreciation of right-of-use assets, net exchange losses, and rates and management fees, despite a decrease as a percentage of revenue Administrative Expenses Breakdown | Item | 2025 (US$ thousand) | % of Total Revenue | 2024 (US$ thousand) | % of Total Revenue | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Staff Costs | 14,627 | 6.0 | 10,584 | 6.5 | 38.2%▲ | | Depreciation of Right-of-Use Assets | 4,149 | 1.7 | 2,407 | 1.5 | 72.4%▲ | | Net Exchange Losses | 2,170 | 0.9 | 1,369 | 0.8 | 58.5%▲ | | Rates and Management Fees | 1,207 | 0.5 | 660 | 0.4 | 82.9%▲ | | Depreciation of Property, Plant and Equipment | 927 | 0.4 | 770 | 0.5 | 20.4%▲ | | Legal and Professional Fees | 676 | 0.3 | 494 | 0.3 | 36.8%▲ | | Utility Expenses | 638 | 0.2 | 492 | 0.3 | 29.7%▲ | | Customer Service Expenses | 476 | 0.2 | 317 | 0.2 | 50.2%▲ | | Directors' Remuneration | 465 | 0.2 | 565 | 0.3 | 17.7%▼ | | Operating Lease Expenses | 251 | 0.1 | 7 | – | 3,485.7%▲ | | Staff Training and Recruitment Expenses | 178 | 0.1 | 155 | 0.1 | 14.8%▲ | | Auditor's Remuneration | 124 | – | 85 | 0.1 | 45.9%▲ | | Others | 697 | 0.3 | 329 | 0.2 | 111.9%▲ | | Total | 26,585 | 10.9 | 18,234 | 11.2 | 45.8%▲ | - Staff costs increased by approximately **US$4,043 thousand or 38.2%**, mainly due to an increase in administrative employees and share option expenses of approximately US$1,950 thousand[68](index=68&type=chunk) - Depreciation of right-of-use assets increased by approximately **US$1,742 thousand or 72.4%**, due to the new lease of the Mapletree Smart Robotic Warehouse[68](index=68&type=chunk) [Finance Costs](index=19&type=section&id=Finance%20Costs) Finance costs increased by 63.9% year-on-year to US$826 thousand, primarily reflecting higher interest on lease liabilities, provision for restoration costs for the new Mapletree Smart Robotic Warehouse lease, and increased interest on bank borrowings - Finance costs for the reporting period were approximately **US$826 thousand** (prior period: US$504 thousand), an increase of approximately **63.9%** from the prior period[71](index=71&type=chunk) - The increase reflects higher interest on lease liabilities, provision for restoration costs for the new Mapletree Smart Robotic Warehouse lease, and increased interest on bank borrowings[71](index=71&type=chunk) [Income Tax Expense](index=19&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 41.0% year-on-year to US$3,407 thousand, primarily due to higher taxable profit during the reporting period - Income tax expense for the reporting period was approximately **US$3,407 thousand** (prior period: US$2,416 thousand), an increase of approximately **US$991 thousand or 41.0%** from the prior period[72](index=72&type=chunk) - The increase was mainly due to **higher taxable profit** generated during the reporting period[72](index=72&type=chunk) [Profit for the Period](index=19&type=section&id=Profit%20for%20the%20Period) Profit for the period increased to US$14,075 thousand, primarily attributed to enhanced marketing efforts on the YesStyle platform driving beauty product sales and the expansion of AsianBeautyWholesale serving more B2B customers - Profit for the reporting period was approximately **US$14,075 thousand** (prior period: US$11,107 thousand)[73](index=73&type=chunk) - The increase in profit was mainly attributable to **enhanced marketing efforts on the YesStyle platform** and the **expansion of AsianBeautyWholesale**[73](index=73&type=chunk) [Capital Expenditure](index=20&type=section&id=Capital%20Expenditure) Capital expenditure significantly increased by 5,022.0% to US$8,605 thousand during the reporting period, primarily for new equipment, computer hardware, and software procurement for the Mapletree Smart Robotic Warehouse - During the reporting period, the Group acquired property, plant and equipment of approximately **US$8,605 thousand** (prior period: US$168 thousand), an increase of approximately **US$8,437 thousand or 5,022.0%** from the prior period[74](index=74&type=chunk) - Capital expenditure was primarily attributable to the procurement of **new equipment, computer hardware, and software** for the Mapletree Smart Robotic Warehouse[74](index=74&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The Group's bank and cash balances decreased, primarily due to net cash outflows from operating and investing activities, partially offset by net cash inflows from financing activities, with new bank borrowings supporting business expansion - As of June 30, 2025, bank and cash balances and unutilized bank facilities were approximately **US$28,492 thousand** (December 31, 2024: US$39,817 thousand)[75](index=75&type=chunk) - The decrease in bank and cash balances was mainly due to **net cash used in operating activities of approximately US$1,485 thousand** and **net cash used in investing activities of approximately US$12,250 thousand**[75](index=75&type=chunk) - Net cash from financing activities was approximately **US$12,332 thousand**, primarily from **borrowings raised of approximately US$17,637 thousand**[76](index=76&type=chunk) - As of June 30, 2025, the Group's bank borrowings were **US$17,416 thousand** (December 31, 2024: nil), used for the establishment of the Mapletree Smart Robotic Warehouse, purchase of life insurance policies, and increased working capital[77](index=77&type=chunk) [Treasury and Foreign Exchange Policy](index=21&type=section&id=Treasury%20and%20Foreign%20Exchange%20Policy) The Group maintains a conservative treasury management policy, avoiding high-leverage or speculative derivative investments, and monitors foreign exchange risks, although it currently has no formal foreign currency hedging policy - The Group's treasury management policy is to maintain a **conservative approach**, avoiding any investments in high-leverage or speculative derivative products[79](index=79&type=chunk) - Major business transactions are denominated in **US dollars, Hong Kong dollars, Korean Won, Japanese Yen, and Euros**, exposing the Group to certain foreign exchange risks[79](index=79&type=chunk) - There is currently **no formal foreign currency hedging policy**, but management monitors foreign exchange risks and considers hedging measures[79](index=79&type=chunk) [Gearing Ratio](index=21&type=section&id=Gearing%20Ratio) The gearing ratio increased from 43.0% as of December 31, 2024, to 59.9% as of June 30, 2025, primarily due to increased bank borrowings and lease liabilities for the Mapletree Smart Robotic Warehouse - The gearing ratio increased from approximately **43.0% as of December 31, 2024, to approximately 59.9% as of June 30, 2025**[80](index=80&type=chunk) - The increase was mainly due to **increased bank borrowings and lease liabilities** for the Mapletree Smart Robotic Warehouse[80](index=80&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[81](index=81&type=chunk) [Capital Commitments](index=21&type=section&id=Capital%20Commitments) Details of the Group's capital commitments are disclosed in Note 21 to the condensed consolidated interim financial information - As of June 30, 2025, the Group had **no significant capital commitments**, other than those disclosed in Note 21 to the condensed consolidated interim financial information[82](index=82&type=chunk) [Significant Investments Held](index=22&type=section&id=Significant%20Investments%20Held) The Group holds shares in Grand Cargo Transportation Holdings Limited as a strategic logistics partner and has entered into life insurance policies as financial assets, with both investments incurring fair value losses - The Group holds **1,100,000 shares in Grand Cargo Transportation Holdings Limited**, representing approximately **0.4% of its issued share capital**, with a fair value of approximately US$485 thousand[83](index=83&type=chunk) - Grand Cargo Transportation Holdings Limited is a **strategic logistics partner** responsible for shipping products to the US, Europe, and other overseas markets[83](index=83&type=chunk) - The investment in Grand Cargo Transportation Holdings Limited resulted in an **unrealized fair value loss of approximately US$4 thousand** and recognized dividends of approximately US$2 thousand[84](index=84&type=chunk) - Life insurance policies were entered into with a total insured amount of approximately **US$4,447 thousand** and a fair value of approximately US$4,004 thousand, pledged to banks to obtain bank financing[84](index=84&type=chunk) [Interim Dividend](index=22&type=section&id=Interim%20Dividend) The Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved **not to declare any interim dividend** for the six months ended June 30, 2025[86](index=86&type=chunk) [Future Plans for Material Investments and Capital Assets](index=22&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of the date of this report, the Group has no immediate future plans for any material investments or capital assets - As of the date of this report, the Group has **no immediate future plans for any material investments or capital assets**[87](index=87&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section covers corporate governance, shareholding structures, employee policies, and other statutory disclosures relevant to the company's operations [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=23&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures) As of June 30, 2025, the company's directors and chief executive held interests in the company's shares and underlying shares, with Mr. Lau Kwok Chu and Ms. Chu Lai Kuen being major shareholders, jointly holding a significant number of shares through spousal interests Directors' and Chief Executive's Interests in Shares | Director Name | Capacity | Nature of Interest | Number of Shares and Underlying Shares | Approximate Percentage of Company's Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | | Mr. Lau Kwok Chu | Beneficial Owner | Long Position | 124,670,980 | 30.25% | | | Spouse's Interest | Long Position | 28,939,550 | 7.02% | | Ms. Chu Lai Kuen | Beneficial Owner | Long Position | 28,939,550 | 7.02% | | | Spouse's Interest | Long Position | 124,670,980 | 30.25% | | Mr. Chu Kin Hang | Beneficial Owner | Long Position | 4,692,120 | 1.14% | | Mr. Lui Pak Shing | Beneficial Owner | Long Position | 31,456,210 | 7.63% | | Mr. Hui Yat Sun | Beneficial Owner | Long Position | 600,000 | 0.15% | | Mr. Poon Chi Ho | Beneficial Owner | Long Position | 100,000 | 0.02% | | Mr. Chan Yu Cheong | Beneficial Owner | Long Position | 100,000 | 0.02% | | Mr. Sin Pak Cheung | Beneficial Owner | Long Position | 100,000 | 0.02% | | Mr. Wong Tsz Chung | Beneficial Owner | Long Position | 100,000 | 0.02% | - **Mr. Lau Kwok Chu and Ms. Chu Lai Kuen** are each deemed to have an interest in the combined number of shares (**153,610,530 shares**, representing approximately **37.27%** of the issued share capital) due to their spousal relationship[89](index=89&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=25&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, PCCW e-Ventures Limited and its associated companies, along with Stonepath Group, Inc., were substantial shareholders of the Company, holding a significant proportion of shares Substantial Shareholders' Interests in Shares | Shareholder Name | Capacity | Nature of Interest | Number of Shares | Approximate Percentage of Company's Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | | PCCW e-Ventures Limited | Beneficial Owner | Long Position | 39,704,030 | 9.63% | | CyberWorks Ventures Limited | Interest of Controlled Corporation | Long Position | 39,704,030 | 9.63% | | PCCW Limited | Interest of Controlled Corporation | Long Position | 39,704,030 | 9.63% | | Stonepath Group, Inc. | Beneficial Owner | Long Position | 26,000,000 | 6.31% | - Non-executive Director **Mr. Poon Chi Ho** holds various positions within the PCCW Group[92](index=92&type=chunk) [Share Option Schemes](index=26&type=section&id=Share%20Option%20Schemes) The company has a 2016 Share Option Scheme and a Post-IPO Share Option Scheme, designed to attract and retain talent and provide opportunities to invest in company shares; during the reporting period, options under both schemes were exercised and granted, incurring corresponding expenses [2016 Share Option Scheme](index=26&type=section&id=2016%20Share%20Option%20Scheme) The 2016 Share Option Scheme aims to attract and retain employees, with no new options granted since the company's listing, but previously granted options remain valid; during the reporting period, 178,382 options were exercised under this scheme, generating approximately US$334 thousand in proceeds - No further share options can be granted under the 2016 Share Option Scheme since the listing on **July 9, 2021**[93](index=93&type=chunk) - As of June 30, 2025, a total of **5,078,760 shares** could be issued upon exercise of outstanding share options under the 2016 Share Option Scheme, representing approximately **1.23%** of the total issued shares[96](index=96&type=chunk) - Total proceeds of approximately **US$334 thousand** received from the exercise of share options under the 2016 Share Option Scheme during the reporting period were used as general working capital of the Company[96](index=96&type=chunk) 2016 Share Option Scheme Movement (H1 2025) | Item | Outstanding as of January 1, 2025 | Exercised during the Period | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Total | 686,258 | (178,382) | 507,876 | [Post-IPO Share Option Scheme](index=29&type=section&id=Post-IPO%20Share%20Option%20Scheme) The Post-IPO Share Option Scheme became effective on July 9, 2021, to attract and retain eligible employees or directors; during the reporting period, 2,482,000 options were granted and 60,750 options were exercised, incurring total expenses of US$7,997 thousand - The Post-IPO Share Option Scheme will expire on **July 8, 2031**[101](index=101&type=chunk) - The total number of shares that may be issued upon exercise of all options granted under the scheme is **39,539,079 shares**, representing a maximum of **10%** of the issued shares on the listing date[102](index=102&type=chunk) - During the reporting period, the Company granted **2,482,000 share options** under the Post-IPO Share Option Scheme, with an estimated total fair value of **US$7,997 thousand**[106](index=106&type=chunk)[178](index=178&type=chunk) - As of June 30, 2025, a total of **32,131,440 shares** could be issued upon exercise of outstanding share options under the Post-IPO Share Option Scheme, representing approximately **7.80%** of the total issued shares[111](index=111&type=chunk) - Total proceeds of **US$65,500** received from the exercise of share options under the Post-IPO Share Option Scheme during the reporting period were used as general working capital of the Company[111](index=111&type=chunk) Post-IPO Share Option Scheme Movement (H1 2025) | Item | Outstanding as of January 1, 2025 | Granted during the Period | Exercised during the Period | Cancelled during the Period | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 801,894 | 2,482,000 | (60,750) | (10,000) | 3,213,144 | [Major Litigation](index=35&type=section&id=Major%20Litigation) During the reporting period, the Group was not involved in any major litigation or arbitration, and the directors are unaware of any pending or potential major litigation or claims against the Group - During the reporting period, the Group was **not involved in any major litigation or arbitration**[115](index=115&type=chunk) [Audit Committee](index=35&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and overseeing financial reporting procedures and internal control systems, and has reviewed the condensed consolidated interim financial information for the six months ended June 30, 2025 - The Audit Committee currently comprises **three independent non-executive directors**: Mr. Wong Tsz Chung (Chairman), Mr. Sin Pak Cheung, and Mr. Chan Yu Cheong[116](index=116&type=chunk) - Its primary responsibilities are to **review and oversee the financial reporting procedures** and the Group's internal control system[116](index=116&type=chunk) - The condensed consolidated interim financial information for the six months ended June 30, 2025, has **not been audited by the auditor but has been reviewed by the Audit Committee**[116](index=116&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, with the exception of share options granted under the Post-IPO Share Option Scheme - During the reporting period, neither the Company nor any of its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities**[117](index=117&type=chunk) - Exceptions include the granting of **2,000,000, 432,000, and 50,000 share options**, respectively, under the Post-IPO Share Option Scheme[117](index=117&type=chunk) [Corporate Governance Practices](index=35&type=section&id=Corporate%20Governance%20Practices) The company has complied with the Corporate Governance Code, with one deviation: currently, no internal audit function is established, and the Board of Directors is directly responsible for internal control work and conducts annual reviews - The Company has complied with the Corporate Governance Code, except for a **deviation from Code Provision D.2.5**[118](index=118&type=chunk) - The Group currently has **no internal audit function**, and the Board of Directors is directly responsible for internal control work and reviews its effectiveness[119](index=119&type=chunk) [Standard Code for Securities Transactions by Directors](index=36&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Standard Code as its code of conduct for directors' securities transactions, and all directors have confirmed compliance with the code during the reporting period - The Company has adopted the **Standard Code** as its own code of conduct for directors' securities transactions[120](index=120&type=chunk) - All Directors have confirmed their compliance with the required standards set out in the Standard Code throughout the reporting period[121](index=121&type=chunk) [Employees and Remuneration Policy](index=36&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 577 employees and offers competitive remuneration packages, on-the-job training, and talent development programs to attract, retain, and motivate qualified personnel - As of June 30, 2025, the Group had **577 employees** (December 31, 2024: 520 employees) located in Hong Kong, Japan, South Korea, the UK, and Germany[122](index=122&type=chunk) - Competitive remuneration packages are provided to employees and directors, including **basic salary, variable pay, bonuses, and other benefits**[122](index=122&type=chunk) - Technical and operational on-the-job training and talent development programs are offered to employees, with the possibility of granting Post-IPO share options[122](index=122&type=chunk) [Transactions in Fully Sanctioned Countries or with Sanctioned Persons](index=36&type=section&id=Transactions%20in%20Fully%20Sanctioned%20Countries%20or%20with%20Sanctioned%20Persons) The Group has implemented appropriate internal controls and risk management measures, conducted no transactions in fully sanctioned countries or with sanctioned persons during the reporting period, and regularly screens business counterparties - The Group has implemented appropriate internal controls and risk management measures and has **not conducted any transactions in fully sanctioned countries or with sanctioned persons**[123](index=123&type=chunk) - Business counterparties are screened using international sanctions databases, and screening results are **regularly updated**[123](index=123&type=chunk) - Sales revenue from non-sanctioned customers: Afghanistan, Balkans, and other regions approximately **US$4,084 thousand** (prior period: US$2,413 thousand); Hong Kong approximately **US$16,254 thousand** (prior period: US$8,591 thousand)[124](index=124&type=chunk) [Major Acquisitions, Disposals, and Future Plans for Subsidiaries](index=37&type=section&id=Major%20Acquisitions%2C%20Disposals%2C%20and%20Future%20Plans%20for%20Subsidiaries) During the reporting period and up to the date of this interim report, the Group had no major acquisitions or disposals of subsidiaries, associates, and joint ventures, and no future plans - During the reporting period and up to the date of this interim report, the Group had **no major acquisitions or disposals of subsidiaries, associates, and joint ventures**, and no future plans[125](index=125&type=chunk) [Pledges of Assets](index=37&type=section&id=Pledges%20of%20Assets) As of June 30, 2025, the Group's bank facilities were primarily secured by pledged bank deposits of approximately US$3,567 thousand - As of June 30, 2025, the Group's bank facilities were secured by the Group's pledged bank deposits of approximately **US$3,567 thousand** (December 31, 2024: US$2,931 thousand)[126](index=126&type=chunk) [Events After the Reporting Period](index=37&type=section&id=Events%20After%20the%20Reporting%20Period) Events after the reporting period are disclosed in Note 22 to the condensed consolidated interim financial information - Events after the reporting period are disclosed in **Note 22 to the condensed consolidated interim financial information**[127](index=127&type=chunk) [Directors' Information](index=37&type=section&id=Directors%27%20Information) Non-executive Director Mr. Hui Yat Sun was appointed as an independent non-executive director of UOB-Kay Hian Holdings Limited effective May 2, 2025 - Non-executive Director **Mr. Hui Yat Sun** was appointed as an independent non-executive director of UOB-Kay Hian Holdings Limited effective **May 2, 2025**[128](index=128&type=chunk) [Acknowledgement](index=37&type=section&id=Acknowledgement) The Board of Directors extends its gratitude to employees, shareholders, customers, and business partners for their contributions and support to the Group - The Board of Directors extends its gratitude to **employees, shareholders, customers, and business partners**[129](index=129&type=chunk) [Condensed Consolidated Interim Statement of Profit or Loss](index=38&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) The Group achieved revenue of US$243,932 thousand and a profit for the period of US$14,075 thousand in the first half of 2025, with basic earnings per share of 3.43 US cents Condensed Consolidated Interim Statement of Profit or Loss Summary | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Revenue | 243,932 | 163,348 | | Cost of Sales | (170,670) | (113,156) | | Gross Profit | 73,262 | 50,192 | | Operating Profit | 18,308 | 14,027 | | Profit for the Period | 14,075 | 11,107 | | Basic Earnings Per Share (US cents) | 3.43 | 2.80 | | Diluted Earnings Per Share (US cents) | 3.36 | 2.78 | [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=39&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group recorded a profit for the period of US$14,075 thousand in the first half of 2025, and with the positive impact of exchange differences on translation of foreign operations, total comprehensive income for the period reached US$15,010 thousand Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income Summary | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 14,075 | 11,107 | | Exchange Differences on Translation of Foreign Operations | 935 | (185) | | Total Comprehensive Income for the Period | 15,010 | 10,922 | [Condensed Consolidated Interim Statement of Financial Position](index=40&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities were US$82,002 thousand, and net assets were US$66,377 thousand, with increases in both non-current assets and current liabilities Condensed Consolidated Interim Statement of Financial Position Summary | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 39,800 | 31,066 | | Total Current Assets | 117,842 | 89,503 | | Total Current Liabilities | 75,640 | 50,982 | | Net Current Assets | 42,202 | 38,521 | | Total Assets Less Current Liabilities | 82,002 | 69,587 | | Total Non-Current Liabilities | 15,625 | 16,597 | | Net Assets | 66,377 | 52,990 | | Total Equity | 66,377 | 52,990 | - Property, plant and equipment increased from **US$3,143 thousand to US$10,831 thousand**, primarily reflecting capital expenditure[133](index=133&type=chunk) - Bank borrowings increased from **nil to US$17,416 thousand**[133](index=133&type=chunk) [Condensed Consolidated Interim Statement of Changes in Equity](index=41&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the company increased from US$53,004 thousand to US$66,439 thousand, primarily influenced by profit for the period, an increase in foreign currency translation reserve, and shares issued under share option schemes Condensed Consolidated Interim Statement of Changes in Equity Summary | Item | January 1, 2025 (US$ thousand) | Profit for the Period (US$ thousand) | Other Comprehensive Income (US$ thousand) | Shares Issued under Share Option Schemes (US$ thousand) | Dividends (US$ thousand) | Share-based Payments Recognized (US$ thousand) | June 30, 2025 (US$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Subtotal Attributable to Company Shareholders | 53,004 | 14,123 | 935 | 400 | (3,989) | 1,966 | 66,439 | - Foreign currency translation reserve changed from **(US$831) thousand at the beginning of the period to US$104 thousand at the end of the period**, reflecting a positive exchange impact[135](index=135&type=chunk) [Condensed Consolidated Interim Statement of Cash Flows](index=42&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) The Group's net cash used in operating activities was US$1,485 thousand, net cash used in investing activities was US$12,250 thousand, and net cash from financing activities was US$12,332 thousand in the first half of 2025, with cash and cash equivalents at period-end totaling US$15,137 thousand Condensed Consolidated Interim Statement of Cash Flows Summary | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (1,485) | (15,198) | | Net Cash Used in Investing Activities | (12,250) | (33) | | Net Cash From / (Used in) Financing Activities | 12,332 | (2,850) | | Net Decrease in Cash and Cash Equivalents | (1,403) | (18,081) | | Cash and Cash Equivalents at End of Period | 15,137 | 6,759 | - Net cash used in investing activities significantly increased, primarily due to the **acquisition of property, plant and equipment of US$8,605 thousand** and an increase in financial assets at fair value through profit or loss of US$3,539 thousand[136](index=136&type=chunk) - Net cash from financing activities mainly resulted from **borrowings raised of US$17,637 thousand**[136](index=136&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=43&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed notes to the condensed consolidated interim financial information, covering accounting policies, fair value measurements, and specific financial statement items [1 Company and Group Information](index=43&type=section&id=1%20Company%20and%20Group%20Information) The Company, incorporated in Hong Kong, primarily engages in the trading of fashion apparel, beauty, and entertainment products through e-commerce platforms and offline wholesale channels, with Mr. Lau Kwok Chu and Ms. Chu Lai Kuen as ultimate controlling shareholders - The Company is incorporated as a limited company in Hong Kong, primarily engaged in the **trading of fashion apparel, beauty and accessories, and entertainment products**[137](index=137&type=chunk) - The Company's ultimate controlling shareholders are **Mr. Lau Kwok Chu and Ms. Chu Lai Kuen**, respectively[138](index=138&type=chunk) - The condensed consolidated interim financial information is presented in **US dollars** and includes comparative data for the year ended December 31, 2024[139](index=139&type=chunk) [2 Basis of Preparation and Changes in the Group's Accounting Policies](index=44&type=section&id=2%20Basis%20of%20Preparation%20and%20Changes%20in%20the%20Group%27s%20Accounting%20Policies) The unaudited condensed interim financial information for the six months ended June 30, 2025, is prepared in accordance with HKAS 34 and the Listing Rules, with accounting policies consistent with the prior year's consolidated financial statements, and newly adopted standards having no significant impact - The condensed interim financial information is prepared in accordance with **Hong Kong Accounting Standard 34** issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Listing Rules[140](index=140&type=chunk) - The accounting policies adopted in the preparation are **consistent with those applied in the preparation of the consolidated financial statements** for the year ended December 31, 2024[140](index=140&type=chunk) - All new and revised Hong Kong Financial Reporting Standards adopted during the period have **not had a significant impact** on the Group's financial statements[140](index=140&type=chunk) [3 Fair Value Measurement](index=45&type=section&id=3%20Fair%20Value%20Measurement) The Group's fair value measurements utilize a three-level input hierarchy, with investments in life insurance policies categorized as Level 2 and equity securities listed in Hong Kong as Level 1 - Fair value measurements use **three levels of input data**: Level 1 (quoted prices in active markets), Level 2 (observable input data), and Level 3 (unobservable input data)[142](index=142&type=chunk)[145](index=145&type=chunk) Financial Assets by Fair Value Hierarchy | Overview | Level 1 (US$ thousand) | Level 2 (US$ thousand) | Level 3 (US$ thousand) | Total (US$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Investment in a Life Insurance Policy | – | 4,004 | – | 4,004 | | Equity Securities Listed in Hong Kong | 485 | – | – | 485 | | Total (June 30, 2025) | 485 | 4,004 | – | 4,489 | - The fair value of the investment in a life insurance policy is determined by reference to the **cash surrender value provided by the insurance company**[144](index=144&type=chunk) [4 Revenue](index=46&type=section&id=4%20Revenue) The Group achieved total revenue of US$243,392 thousand during the reporting period, primarily from goods sold at a point in time and shipping revenue recognized over time Revenue Breakdown from Contracts with Customers by Major Product or Service Line | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Sale of Goods Recognized at a Point in Time | 219,489 | 145,778 | | Shipping Revenue Recognized Over Time | 23,661 | 17,324 | | Logistics Income Recognized Over Time | 241 | 245 | | Consignment Sales Recognized at a Point in Time | 1 | 1 | | Total | 243,392 | 163,348 | [5 Other Income and Other Gains and Losses](index=46&type=section&id=5%20Other%20Income%20and%20Other%20Gains%20and%20Losses) The Group's other income and other gains and losses for the reporting period amounted to US$359 thousand, a decrease from the prior period, mainly due to increased fair value losses on financial assets and reduced marketing income Other Income and Other Gains and Losses Breakdown | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Cash Rebates | 7 | 15 | | Dividend Income | 2 | 2 | | Fair Value Loss on Financial Assets at FVTPL | (554) | (311) | | Marketing Income | 717 | 825 | | Interest Income | 181 | 172 | | Sublease Income | 4 | – | | Miscellaneous Income | 2 | 8 | | Total | 359 | 711 | [6 Segment Information](index=47&type=section&id=6%20Segment%20Information) The Group's operating segments primarily include fashion and lifestyle and beauty products, and entertainment products, with fashion and lifestyle and beauty products contributing the vast majority of revenue and segment results; geographically, the United States, European Union countries, and Hong Kong are the main revenue sources Revenue from External Customers by Operating Segment (H1 2025) | Segment | Revenue from External Customers (US$ thousand) | | :--- | :--- | | Fashion and Lifestyle and Beauty Products | 242,801 | | Entertainment Products | 890 | | Unallocated (Logistics Services) | 241 | | Total | 243,932 | Revenue from External Customers by Destination Port (H1 2025) | Region | Revenue (US$ thousand) | | :--- | :--- | | United States | 65,270 | | European Union Countries | 70,102 | | United Kingdom | 15,640 | | Hong Kong | 16,254 | | Canada | 14,884 | | United Arab Emirates | 8,258 | | Mexico | 7,527 | | Australia | 5,771 | | Others | 34,926 | | Consolidated Total | 243,932 | - As of June 30, 2025 and 2024, **86.6% and 95.2%**, respectively, of the Group's non-current assets were located in Hong Kong[151](index=151&type=chunk) - No revenue from a single customer accounted for **more than 10%** of the Group's total revenue[152](index=152&type=chunk) [7 Income Tax Expense](index=49&type=section&id=7%20Income%20Tax%20Expense) The Group's income tax expense for the reporting period was US$3,407 thousand, primarily comprising Hong Kong profits tax and overseas corporate income tax, with rates calculated according to local tax laws Income Tax Expense Breakdown | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 2,278 | 1,758 | | Overseas Corporate Income Tax | 1,129 | 658 | | Total | 3,407 | 2,416 | - Hong Kong profits tax is levied at a two-tiered rate: **8.25% on the first HK$2 million of assessable profits** and **16.5% on the remaining profits**[153](index=153&type=chunk) - Korean corporate income tax is levied at progressive rates ranging from **9.9% to 26.4%** on estimated taxable profits[153](index=153&type=chunk) [8 Profit for the Period](index=50&type=section&id=8%20Profit%20for%20the%20Period) The Group's profit for the period is presented after deducting various expenses, including cost of inventories sold, depreciation, employee benefit expenses, and net exchange losses Profit for the Period Deductions | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Auditor's Remuneration | 124 | 85 | | Cost of Inventories Sold | 122,574 | 77,296 | | Depreciation (Property, Plant and Equipment and Right-of-Use Assets) | 5,076 | 3,177 | | Employee Benefit Expenses (including Directors' Remuneration) | 17,630 | 13,362 | | Net Exchange Losses | 2,170 | 1,369 | | Expenses Related to Short-Term Leases | 251 | 7 | | Net Write-down of Inventories | 287 | 98 | [9 Dividends](index=50&type=section&id=9%20Dividends) The Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2025, while the final dividend for the 2024 financial year was paid in July 2025 - The Board of Directors resolved **not to declare any interim dividend** for the six months ended June 30, 2025[156](index=156&type=chunk) - The final dividend of **7.5 HK cents per share** (totaling approximately US$3,989 thousand) for the year ended December 31, 2024, was approved on June 20, 2025, and paid on July 14, 2025[156](index=156&type=chunk) [10 Earnings Per Share](index=51&type=section&id=10%20Earnings%20Per%20Share) The Group's basic earnings per share for the first half of 2025 was 3.43 US cents, and diluted earnings per share was 3.36 US cents, with the dilutive effect of share options considered in the calculation Earnings Per Share Calculation Details | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Profit for Calculation of Basic and Diluted Earnings Per Share | 14,123 | 11,110 | | Weighted Average Number of Ordinary Shares for Basic EPS (thousand shares) | 410,874 | 397,269 | | Dilutive Effect of Potential Ordinary Shares from Company Share Options (thousand shares) | 8,415 | 2,617 | | Weighted Average Number of Ordinary Shares for Diluted EPS (thousand shares) | 419,289 | 399,886 | - For the six months ended June 30, 2025, the calculation of diluted earnings per share did not assume the exercise of the Company's unexercised share options because the exercise price of these options was **higher than the average market price of the shares**[157](index=157&type=chunk) [11 Property, Plant and Equipment](index=52&type=section&id=11%20Property%2C%20Plant%20and%20Equipment) The Group acquired approximately US$8,605 thousand in property, plant and equipment during the reporting period, a significant increase from the prior period - During the reporting period, the Group acquired property, plant and equipment of approximately **US$8,605 thousand** (prior period: US$168 thousand)[158](index=158&type=chunk) [12 Trade and Other Receivables](index=52&type=section&id=12%20Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and other receivables amounted to US$23,093 thousand, a significant increase from December 31, 2024, primarily from trade receivables from customers Trade and Other Receivables Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Trade Receivables from Third-Party Payment Platforms | 3,466 | 1,624 | | Trade Receivables from Customers | 12,680 | 935 | | Less: Impairment Losses | (26) | (1) | | Other Receivables | 6,973 | 7,413 | | Total | 23,093 | 9,971 | Ageing Analysis of Trade Receivables (Net of Provision) | Ageing | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | 0 to 30 Days | 15,217 | 2,112 | | 31 to 60 Days | 429 | 171 | | 61 to 90 Days | 235 | 215 | | Over 90 Days | 239 | 60 | | Total | 16,120 | 2,558 | - E-commerce sales typically have **no credit period**, while offline wholesale and logistics services offer credit periods of up to 180 days[160](index=160&type=chunk) [13 Prepayments and Deposits](index=54&type=section&id=13%20Prepayments%20and%20Deposits) As of June 30, 2025, the Group's total prepayments and deposits amounted to US$9,391 thousand, with prepayments primarily for payments to suppliers and deposits mainly comprising lease deposits Prepayments and Deposits Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Total Prepayments | 5,856 | 5,423 | | Total Deposits | 3,535 | 5,403 | | Total | 9,391 | 10,826 | | Analyzed as: Current Assets | 6,443 | 5,969 | | Analyzed as: Non-Current Assets | 2,948 | 4,857 | - Deposits paid for property, plant and equipment decreased from **US$2,933 thousand to US$95 thousand**[162](index=162&type=chunk) [14 Trade and Other Payables and Accruals](index=55&type=section&id=14%20Trade%20and%20Other%20Payables%20and%20Accruals) As of June 30, 2025, the Group's total trade and other payables and accruals amounted to US$32,074 thousand, a significant increase from December 31, 2024, primarily due to increases in trade payables and dividends payable Trade and Other Payables and Accruals Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Trade Payables | 15,137 | 9,930 | | Other Payables | 8,657 | 4,753 | | Accruals | 8,280 | 7,982 | | Total | 32,074 | 22,665 | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | 0 to 30 Days | 12,748 | 9,597 | | 31 to 60 Days | 2,309 | 328 | | 61 to 90 Days | 72 | 1 | | Over 90 Days | 8 | 4 | | Total | 15,137 | 9,930 | [15 Contract Liabilities](index=56&type=section&id=15%20Contract%20Liabilities) As of June 30, 2025, the Group's contract liabilities amounted to US$10,958 thousand, a decrease from December 31, 2024, primarily due to improved delivery efficiency from the operational Mapletree Smart Robotic Warehouse Contract Liabilities Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Sale of Goods Through Online Platforms | 6,879 | 12,338 | | Deferred Revenue from Customer Loyalty Programs | 1,864 | 1,914 | | Shopping Credits | 2,215 | 2,010 | | Total | 10,958 | 16,262 | - The decrease in contract liabilities balance is mainly due to the Group's **Mapletree Smart Robotic Warehouse becoming operational**, improving delivery efficiency and allowing more orders to be delivered[164](index=164&type=chunk) - All remaining contract liabilities are expected to be recognized as revenue within one year, except for shopping credits which are valid for **two years from the date of grant**[165](index=165&type=chunk) [16 Lease Liabilities](index=57&type=section&id=16%20Lease%20Liabilities) As of June 30, 2025, the Group's total lease liabilities amounted to US$22,366 thousand, primarily from leased properties, with repayment scheduled over various terms Lease Liabilities Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Leased Properties | 22,122 | 22,707 | | Office and Warehouse Equipment | 244 | 97 | | Total | 22,366 | 22,804 | Present Value of Lease Commitments | Term | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Within One Year | 9,002 | 8,146 | | Over One Year but Not Exceeding Two Years | 5,035 | 8,863 | | Over Two Years but Not Exceeding Five Years | 8,329 | 5,795 | | Total | 22,366 | 22,804 | - The incremental borrowing rates applied to lease liabilities ranged from **1.96% to 17.81%**[168](index=168&type=chunk) [17 Bank Borrowings](index=58&type=section&id=17%20Bank%20Borrowings) As of June 30, 2025, the Group's total bank borrowings amounted to US$17,416 thousand, primarily secured bank loans bearing floating annual interest rates and collateralized by bank deposits, life insurance policies, and company guarantees Bank Borrowings Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Secured Bank Loans - HKD Denominated | 14,422 | – | | Secured Bank Loans - USD Denominated | 2,994 | – | | Total | 17,416 | – | Carrying Amount of Bank Borrowings Repayable | Term | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Within One Year | 12,252 | – | | Over One Year but Not Exceeding Two Years | 2,480 | – | | Over Two Years but Not Exceeding Five Years | 464 | – | | Over Five Years | 2,220 | – | | Total | 17,416 | – | - Secured bank borrowings bear floating annual interest rates ranging from approximately **2.47% to 4.93%**[169](index=169&type=chunk) - Bank borrowings are secured by bank deposits of approximately **US$733 thousand**, life insurance policies with a carrying value of approximately US$4,004 thousand, and guarantees executed by the Company[171](index=171&type=chunk) - Unutilized bank facilities as of June 30, 2025, amounted to **US$13,244 thousand**[171](index=171&type=chunk) [18 Share Capital](index=59&type=section&id=18%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital was US$24,911 thousand, with 412,103,784 shares, an increase from the beginning of the period, primarily due to shares issued under share option schemes Sha