Company Information and Report Overview [Company Basic Information](index=1&type=section&id=1.1%20公司基本信息) HAO WEN HOLDINGS LIMITED (Stock Code: **8019**), listed on GEM, reports unaudited interim results for H1 2025 - The company name is HAO WEN HOLDINGS LIMITED, Stock Code **8019**[2](index=2&type=chunk) - The company was incorporated in the Cayman Islands on August 1, 2000, and its shares have been listed on GEM of the Stock Exchange since July 20, 2021[12](index=12&type=chunk) - This announcement is for the unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Report Summary](index=4&type=section&id=1.2%20报告摘要) H1 2025 revenue decreased **2.0%** to **RMB 21,864 thousand**, with **RMB 667 thousand** loss and no dividend Key Financial Highlights for H1 2025 | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 21,864 | 22,317 | -2.0% | | Loss Attributable to Owners | (667) | (14,725) | -95.5% (Loss narrowed) | | Loss Per Share (RMB cents) | (0.19) | (4.14) | -95.4% (Loss narrowed) | - The Directors do not recommend the payment of an interim dividend for the period[7](index=7&type=chunk)[27](index=27&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=2.1%20简明综合损益及其他全面收益表) H1 2025 revenue **RMB 21,864 thousand**, operating profit **RMB 1,383 thousand**, and loss for owners significantly narrowed to **RMB 667 thousand** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 21,864 | 22,317 | | Cost of Sales | (7,744) | (6,885) | | Gross Profit | 14,120 | 15,432 | | Other Income / (Losses) | 3,262 | (18,160) | | General and Administrative Expenses | (15,999) | (9,824) | | Operating Profit / (Loss) | 1,383 | (12,552) | | Finance Costs | (2,050) | (2,173) | | Loss Before Tax | (667) | (14,725) | | Loss for the Period Attributable to Owners of the Company | (667) | (14,725) | | Loss Per Share (RMB cents) | (0.19) | (4.14) | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=2.2%20简明综合财务状况表) As at June 30, 2025, total assets less current liabilities were **RMB 292,673 thousand**, net assets **RMB 273,938 thousand** Condensed Consolidated Statement of Financial Position (As at June 30) | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 161,159 | 174,056 | | Current Assets | 199,231 | 195,957 | | Current Liabilities | (67,717) | (62,580) | | Net Current Assets | 131,514 | 133,377 | | Total Assets Less Current Liabilities | 292,673 | 307,433 | | Non-current Liabilities | (18,735) | (17,638) | | Net Assets | 273,938 | 289,795 | | Total Equity | 273,938 | 289,795 | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=2.3%20简明综合权益变动表) As at June 30, 2025, total equity was **RMB 273,938 thousand**, decreased from **RMB 292,726 thousand** due to period's loss and foreign exchange differences Condensed Consolidated Statement of Changes in Equity (As at June 30) | Item | January 1, 2024 (RMB thousands) | June 30, 2024 (RMB thousands) | January 1, 2025 (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Share Capital | 3,614 | 3,614 | 3,614 | 3,614 | | Share Premium | 379,917 | 379,917 | 379,917 | 379,917 | | Total Reserves | 536,025 | 536,025 | 536,025 | 536,025 | | Exchange Reserve | 30,489 | 39,628 | 35,921 | 20,731 | | Accumulated Losses | (640,130) | (672,044) | (665,682) | (666,349) | | Total Equity | 292,726 | 287,140 | 289,795 | 273,938 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=2.4%20简明综合现金流量表) H1 2025 net cash used in operations **RMB 1,703 thousand**, net cash from financing **RMB 897 thousand**, net cash decrease **RMB 806 thousand** Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (1,703) | (1,109) | | Net Cash From Financing Activities | 897 | – | | Net Decrease in Cash and Cash Equivalents | (806) | (1,109) | | Cash and Cash Equivalents at January 1 | 3,628 | 2,835 | | Effect of Foreign Exchange Rate Changes | (102) | 80 | | Cash and Cash Equivalents at June 30 | 2,720 | 1,806 | Notes to the Condensed Consolidated Interim Financial Information [Company Information](index=9&type=section&id=3.1%20公司资料) HAO WEN HOLDINGS LIMITED, incorporated in the Cayman Islands, primarily engages in money lending and electronic components processing and trading - The Group primarily engages in money lending and the processing and trading of electronic components[13](index=13&type=chunk) - The company was incorporated in the Cayman Islands on August 1, 2000, and its shares have been listed on GEM of the Stock Exchange since July 20, 2021[12](index=12&type=chunk) [Basis of Preparation](index=9&type=section&id=3.2%20编制基準) Interim financial information prepared under IAS 34 and GEM Listing Rules, consistent with prior year, using historical cost except for FVTPL assets - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and complies with the applicable disclosure provisions of the GEM Listing Rules[14](index=14&type=chunk) - The financial information is prepared on the historical cost basis, except for financial assets at fair value through profit or loss[15](index=15&type=chunk) - The Group adopts RMB as its reporting currency[16](index=16&type=chunk) [Revenue](index=10&type=section&id=3.3%20收益) H1 2025 total revenue **RMB 21,864 thousand**, primarily from money lending (**RMB 13,952 thousand**) and electronic component sales Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of electronic components in PRC | 7,912 | 7,048 | | Interest income from money lending in Hong Kong | 13,952 | 15,269 | | **Total Revenue** | **21,864** | **22,317** | - The decrease in revenue was primarily due to lower revenue from the money lending business, partially offset by growth in the electronic components processing and trading business[38](index=38&type=chunk) [Segment Information](index=11&type=section&id=3.4%20分部资料) The Group's money lending and electronic components segments reported revenues of **RMB 13,952 thousand** and **RMB 7,912 thousand** respectively, with significant segment assets Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Segment Results (RMB thousands) | 2024 Segment Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Money Lending | 13,952

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 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 截 至2025年6月30日 止6個月之中期業績公告 金 泰 能 源 控 股 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）公 佈 本 公 司 及 其 附 屬 公 司（統 稱 為「本集團」）截 至2025年6月30日 止6個月之未經審核簡明綜合業 績，連 同2024年 度 同 期 之 比 較 數 字。 – 1 – 簡明綜合損益表 截 至2025年6月30日 止6個 月 JINTAI ENERGY HOLDINGS LIMITED 金泰能源控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：2728） – 4 – – 2 – 簡明綜合全面收益表 | | | | | | | | | 未經審核 | | | | --- | --- | --- | --- | --- | - ...

[Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group announced its unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, showing decreases in revenue and gross profit, a significant shift from profit to loss, and a substantial increase in loss | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Revenue | 70,340 | 73,125 | (2,785) | | Gross Profit | 4,691 | 11,851 | (7,160) | | (Loss)/Profit for the period | (169,763) | 1,710,061 | (1,879,824) | | (Loss)/Profit for the period attributable to owners of the Company | (169,763) | 1,726,335 | (1,896,098) | [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) [Performance of Continuing Operations](index=2&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE) The Group's continuing operations recorded a significant loss in the first half of 2025, primarily due to decreased revenue, reduced gross profit, and a substantial increase in finance costs | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :--- | :--- | | Revenue | 70,340 | 73,125 | | Cost of Sales | (65,649) | (61,274) | | Gross Profit | 4,691 | 11,851 | | Other Operating Income | 702 | 4,215 | | Administrative and Other Operating Expenses | (5,566) | (5,484) | | Finance Costs | (169,010) | (109,650) | | Loss Before Tax | (168,877) | (99,068) | | Loss for the period from continuing operations | (169,763) | (101,909) | [Performance of Discontinued Operations](index=2&type=section&id=%E5%B7%B2%E7%B5%82%E6%AD%A2%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE) In the same period of 2024, the Group recorded a substantial profit from discontinued operations, mainly from the deemed disposal of Shanxi Coal Group, with no such business in 2025 | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :--- | :--- | | Profit for the period from discontinued operations | – | 1,811,970 | [(Loss)/Profit for the period attributable to owners of the Company](index=2&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%B5%E6%9C%9F%E5%85%A7%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E6%BA%A2%E5%88%A9) The loss attributable to owners of the Company significantly shifted from a profit in the prior year to a loss in 2025, mainly due to expanded losses from continuing operations and no profit contribution from discontinued operations | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :--- | :--- | | (Loss)/Profit for the period attributable to owners of the Company | (169,763) | 1,726,335 | | Loss for the period from continuing operations attributable to owners of the Company | (169,763) | (101,909) | | Profit/(Loss) for the period from discontinued operations attributable to owners of the Company | – | 1,828,244 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&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) [Total Comprehensive (Expense)/Income for the Period](index=4&type=section&id=%E6%9C%9F%E5%85%A7%E5%85%A8%E9%9D%A2%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89%E2%88%95%E6%94%B6%E5%85%A5%E7%B8%BD%E9%A1%8D) The Group's total comprehensive income for the period shifted from income in 2024 to an expense in 2025, primarily due to the loss for the period and negative exchange differences from overseas operations | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | (Loss)/Profit for the period | (169,763) | 1,710,061 | | Exchange differences on translation of overseas operations | (23,654) | 20,807 | | Total comprehensive (expense)/income for the period | (193,698) | 1,899,775 | | Total comprehensive (expense)/income for the period attributable to owners of the Company | (193,698) | 1,913,966 | [Condensed Consolidated Statement of Financial Position](index=5&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) [Assets and Liabilities Position](index=5&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E7%8B%80%E6%B3%81) As of June 30, 2025, the Group's net current liabilities and total capital deficit both significantly increased, indicating a continuous deterioration in financial health | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 4,987 | 5,842 | | Current Assets | 66,945 | 143,713 | | Current Liabilities | 2,585,594 | 2,183,915 | | Net Current Liabilities | (2,518,649) | (2,040,202) | | Total Assets Less Current Liabilities | (2,513,662) | (2,034,360) | | Total Capital Deficit | (2,674,000) | (2,480,302) | | Non-current Liabilities | 160,338 | 445,942 | [Notes](index=7&type=section&id=%E9%99%84%E8%A8%BB) [1. General Information](index=7&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Group primarily engages in cassava starch, coal, and IT product sales and system integration services, facing severe going concern issues including substantial accumulated losses and overdue debts - The Group's principal businesses include cassava starch deep processing, coal processing and sales, and information technology product sales and system integration services[10](index=10&type=chunk) | Financial Position | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Loss for the period | 169,763 | – | | Accumulated Losses | 12,028,694 | 11,858,931 | | Current Liabilities Exceeding Current Assets | 2,518,649 | 2,040,202 | | Total Liabilities Exceeding Total Assets | 2,674,000 | 2,480,302 | | Total Borrowings | 1,285,031 | 1,250,427 | | Cash and Cash Equivalents | 6,129 | 2,016 | - The Group has multiple overdue or soon-to-be-due debts, including **US$40 million** in 2017 convertible bonds, other payables related to subsidiary acquisitions of approximately **HKD 131 million**, and amounts payable to associates of approximately **HKD 489 million**, posing significant going concern uncertainties[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [2. Principal Accounting Policies](index=10&type=section&id=2.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim financial information is prepared on a historical cost basis, applying revised HKFRSs with no significant impact on financial performance or position - The interim financial information is prepared on a historical cost basis and has applied revised Hong Kong Financial Reporting Standards, but with no material impact on the Group's financial position and performance[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [3. Segment Information](index=10&type=section&id=3.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's continuing operations are primarily divided into coal business, system integration services and software solutions, and cassava starch business, with coal being the main revenue source but experiencing a significant decline in segment profit - The Group's continuing operations are divided into coal business, system integration services and software solutions, and cassava starch business[24](index=24&type=chunk) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) (Restated) | | :--- | :--- | :--- | | Coal Business | 70,340 | 73,125 | | System Integration Services and Software Solutions | – | – | | Cassava Starch Business | – | – | | Total | 70,340 | 73,125 | | Segment | 2025 Segment Profit/(Loss) (HKD thousands) | 2024 Segment Profit/(Loss) (HKD thousands) (Restated) | | :--- | :--- | :--- | | System Integration Services and Software Solutions | 617 | (51) | | Coal Business | 3,764 | 11,376 | | Cassava Starch Business | – | (7) | | Total | 4,381 | 11,318 | | Segment Assets | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | System Integration Services and Software Solutions | 1,788 | 1,779 | | Coal Business | 60,700 | 119,809 | | Cassava Starch Business | 101 | 43 | | Total Segment Assets | 62,589 | 121,631 | | Total Consolidated Assets | 71,932 | 149,555 | | Segment Liabilities | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | System Integration Services and Software Solutions | 3,710 | 3,982 | | Coal Business | 21,143 | 67,151 | | Cassava Starch Business | 3,118 | 3,118 | | Total Segment Liabilities | 27,971 | 74,251 | | Total Consolidated Liabilities | 2,745,932 | 2,629,857 | [4. Revenue and Other Operating Income](index=13&type=section&id=4.%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E7%B6%93%E7%87%9F%E6%94%B6%E7%9B%8A) The Group's revenue primarily derives from coal business, with coal product sales accounting for the majority, all from the Chinese market, while other operating income includes derecognition gains and government grants | Type of Goods or Services | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :--- | :--- | | Sales of Coal Products | 69,460 | 72,015 | | Coal Service Fee Income | 880 | 1,110 | | Total | 70,340 | 73,125 | - All revenue is derived from the People's Republic of China market and recognized at a point in time[32](index=32&type=chunk) | Other Operating Income | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :--- | :--- | | Bank Interest Income | 4 | 4 | | Gain on modification of financial liabilities | – | 4,198 | | Government Grants | 51 | 13 | | Gain on derecognition of a subsidiary | 647 | – | | Total | 702 | 4,215 | [5. Finance Costs](index=14&type=section&id=5.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) The Group's finance costs significantly increased, mainly due to higher effective interest expenses on convertible bonds and interest expenses on other borrowings and payables | Finance Cost Item | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :--- | :--- | | Effective interest expense on convertible bonds | 31,799 | 468 | | Interest expense on other borrowings and other payables | 137,163 | 109,128 | | Interest expense on lease liabilities | 48 | 54 | | Total interest expense on financial liabilities | 169,010 | 109,650 | [6. Loss Before Tax](index=15&type=section&id=6.%20%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) Loss before tax is primarily influenced by depreciation, emoluments of directors and key management, and staff costs, with a reversal of expected credit losses | Item | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 670 | 637 | | Emoluments of directors and chief executive | 1,066 | 1,156 | | Reversal of expected credit losses | (306) | – | | Staff costs | 2,276 | 2,382 | [7. Income Tax Expense](index=15&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The Group is exempt from income tax in Bermuda, Samoa, and BVI, with no tax provision for Hong Kong and Cambodian subsidiaries due to no taxable profits, and a 25% tax rate for Chinese subsidiaries - The Group is exempt from income tax in Bermuda, Samoa, and the British Virgin Islands[39](index=39&type=chunk) - Hong Kong and Cambodian subsidiaries have not made income tax provisions due to the absence of taxable profits[39](index=39&type=chunk) - Chinese subsidiaries are subject to a tax rate of **25%**[39](index=39&type=chunk) [8. Dividends](index=16&type=section&id=8.%20%E8%82%A1%E6%81%AF) The Company did not pay, declare, or propose any interim dividends for the six months ended June 30, 2025, or 2024 - For the six months ended June 30, 2025, and 2024, the Company did not pay, declare, or propose any interim dividends[40](index=40&type=chunk) [9. Discontinued Operations](index=16&type=section&id=9.%20%E5%B7%B2%E7%B5%82%E6%AD%A2%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99) The Group classified the mining and coal trading businesses of Shanxi Coal Group as discontinued operations, with a significant gain from the deemed disposal of Shanxi Coal Group in the prior year - Following the completion of the reorganization on January 19, 2024, the mining business of Shanxi Coal Group ceased to be a non-wholly owned subsidiary of the Group, and its financial results have been classified as discontinued operations[41](index=41&type=chunk) - The Group decided to terminate the coal trading business within the mining operations, operated through Shanxi Changtong Energy Co, Ltd, to improve profit margins and reallocate resources to the coal processing business[41](index=41&type=chunk) | Analysis of Profit for the period from Discontinued Operations (January 1 to June 30, 2024) | | | :--- | :--- | | Loss for the period from mining operations | (50,931) HKD thousands | | Gain on deemed disposal of Shanxi Coal Group | 1,862,901 HKD thousands | | Profit for the period from discontinued operations | 1,811,970 HKD thousands | [10. (Loss)/Earnings Per Share](index=18&type=section&id=10.%20%E6%AF%8F%E8%82%A1%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E7%9B%88%E5%88%A9) The Group recorded basic and diluted loss per share in the first half of 2025, contrasting with earnings per share in 2024 due to gains from discontinued operations | (Loss)/Earnings Per Share (HK cents) | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | From continuing and discontinued operations (basic and diluted) | (32.3) | 328.0 | | From continuing operations (basic and diluted) | (32.3) | (19.4) | | From discontinued operations (basic and diluted) | – | 347.4 | | Number of Shares (thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Weighted average number of ordinary shares for basic and diluted (loss)/earnings per share | 526,260 | 526,260 | [11. Trade and Bills Receivables](index=20&type=section&id=11.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) The Group's total trade and bills receivables significantly decreased, with a notable increase in receivables within 30 days, indicating a shift in aging structure - The Group generally grants customers credit terms of **30 to 60 days**, and bills receivable mature within **6 months** from the issue date[49](index=49&type=chunk) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 30 days | 13,502 | 334 | | 31 to 60 days | 227 | 53,454 | | 61 to 90 days | 234 | 314 | | 91 to 180 days | 231 | 954 | | 181 to 365 days | 2,383 | 394 | | Total | 16,577 | 55,450 | [12. Trade and Other Payables](index=20&type=section&id=12.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) The Group's total trade payables significantly decreased, with 31-90 day aging cleared, but amounts over 365 days still persist - The average credit period for purchases of goods is **90 days**[51](index=51&type=chunk) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 30 days | 11,623 | 19,697 | | 31 to 60 days | – | 19,825 | | 61 to 90 days | – | 2,807 | | 91 to 180 days | 555 | – | | 181 to 365 days | 2,472 | 275 | | Over 365 days | 1,839 | 5,737 | | Total | 16,489 | 48,341 | [13. Share Capital](index=21&type=section&id=13.%20%E8%82%A1%E6%9C%AC) The Company's authorized and issued share capital remained unchanged during the period | Share Capital Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Authorized Share Capital | 2,000,000 | 2,000,000 | | Issued and Fully Paid Share Capital | 526 | 526 | [14. Comparative Figures](index=21&type=section&id=14.%20%E6%AF%94%E8%BC%83%E6%95%B8%E5%AD%97) Certain comparative figures have been restated due to disclosure requirements for discontinued operations - Comparative figures in the condensed consolidated statement of profit or loss have been restated due to disclosure requirements for discontinued operations[53](index=53&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review](index=22&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group maintained stable coal business operations with slightly reduced revenue amidst a challenging global economic environment, while actively exploring opportunities in cassava starch and system integration services [Overview](index=22&type=section&id=%E6%A6%82%E6%B3%81) The first half of 2025 saw a challenging and uncertain global economic environment, yet China's economy demonstrated resilience with a 5.3% GDP growth - The global economic environment in the first half of 2025 faced challenges, including US tariff policies and geopolitical conflicts in the Middle East[55](index=55&type=chunk) - China's economy demonstrated resilience, with GDP growth reaching **5.3%** in the first half of the year[55](index=55&type=chunk) [Coal Business](index=22&type=section&id=%E7%85%A4%E7%82%AD%E6%A5%AD%E5%8B%99) Coal business operations remained stable despite slightly reduced revenue due to weaker market demand, with the Group maintaining resilience through customer relationships, advanced washing technology, and flexible supply arrangements - Coal business revenue slightly decreased compared to the same period in 2024, but overall operations remained stable[56](index=56&type=chunk) - The Group is committed to strengthening long-term cooperation with existing customers, improving coking coal quality through advanced washing processes, and maintaining flexible supply arrangements[56](index=56&type=chunk) - Amidst industry instability, the Group adheres to a prudent operating strategy, focusing on key businesses, ensuring production safety, stable supply chains, and deepening customer cooperation[56](index=56&type=chunk) [Cassava Starch Business](index=23&type=section&id=%E6%9C%A8%E8%96%AF%E6%BE%B1%E7%B2%89%E6%A5%AD%E5%8B%99) The Group is actively seeking business opportunities related to cassava agriculture and deep processing in Cambodia - The Group is actively seeking business opportunities related to cassava agriculture and deep processing in Cambodia[57](index=57&type=chunk) [System Integration Services and Software Solutions](index=23&type=section&id=%E7%B3%BB%E7%B5%B1%E9%9B%86%E6%88%90%E6%9C%8D%E5%8B%99%E5%8F%8A%E8%BB%9F%E4%BB%B6%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88) The Group is exploring business opportunities related to the system integration services and software solutions segment - The Group is exploring business opportunities related to the system integration services and software solutions segment[58](index=58&type=chunk) [Financial Review](index=23&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's loss from continuing operations significantly increased in the first half of 2025, primarily due to reduced revenue and gross profit from lower average selling prices of coal products, and a substantial rise in finance costs [Results Review](index=23&type=section&id=%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) Loss from continuing operations expanded to **HKD 169 million** during the period, mainly due to decreased revenue and gross profit from lower average selling prices of coal products, and a **HKD 59.36 million** increase in finance costs | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Loss for the period from continuing operations | 169,763 | 101,909 | 67,854 (Increase) | | Revenue | 70,340 | 73,125 | (2,785) (Decrease) | | Gross Profit | 4,691 | 11,851 | (7,160) (Decrease) | | Administrative and Other Operating Expenses | 5,566 | 5,484 | 82 (Increase) | | Finance Costs | 169,010 | 109,650 | 59,360 (Increase) | | Loss for the period from continuing operations attributable to owners of the Company | 169,763 | 101,909 | 67,854 (Increase) | - The increase in finance costs was primarily due to an increase of approximately **HKD 31.331 million** in effective interest expense on convertible bonds and an increase of approximately **HKD 28.035 million** in interest expense on other borrowings and payables[62](index=62&type=chunk) [Liquidity and Financial Resources](index=24&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 Group's total capital deficit and total liabilities continued to increase, rendering the gearing ratio meaningless due to the capital deficit, while cash and cash equivalents increased but remained low [Total Capital Deficit](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E虧%E7%B7%BC%E7%B8%BD%E9%A1%8D) As of June 30, 2025, the Group's total assets, total liabilities, and total capital deficit all indicated a deteriorating financial position | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Assets | 71,932 | 149,555 | | Total Liabilities | 2,745,932 | 2,629,857 | | Total Capital Deficit | 2,674,000 | 2,480,302 | [Gearing Level](index=24&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%B0%B4%E5%B9%B3) The Group's gearing ratio is not meaningful due to the existence of a capital deficit - The Group recorded a capital deficit as of June 30, 2025, and December 31, 2024, rendering the gearing ratio not meaningful[65](index=65&type=chunk) [Liquidity](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91) The Group's cash and cash equivalents increased, but it still had no bank borrowings | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Cash and Cash Equivalents | 6,129 | 2,016 | - The Group had no bank borrowings during both reporting periods[66](index=66&type=chunk) [Management's Opinion on Going Concern](index=25&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E5%B0%8D%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E4%B9%8B%E6%84%8F%E8%A6%8B) Management acknowledges significant going concern uncertainties but believes the Group can resolve these issues by implementing its action plan - The Directors acknowledge the existence of significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern[67](index=67&type=chunk) - The Group has not received any winding-up petitions or further notices of legal proceedings against the Company, despite some debts being overdue[68](index=68&type=chunk) - Management believes that if the action plan is successfully implemented, the Group will resolve its going concern issues[69](index=69&type=chunk) [Company's Action Plan](index=25&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%A1%8C%E5%8B%95%E8%A8%88%E5%8A%83) The Group has formulated several action plans to address going concern issues, including negotiating debt repayment extensions, increasing coal business profitability, and seeking external financing - The Group is negotiating with holders of the 2017 convertible bonds, creditors of other payables related to subsidiary acquisitions, associates, and holders of the 2024 convertible bonds to extend repayment due dates[70](index=70&type=chunk) - The Group will take proactive measures to increase the profitability of its coal business to improve operating cash flow and financial position[70](index=70&type=chunk) - The Group is committed to obtaining external financing and/or fundraising opportunities[70](index=70&type=chunk) - The Group's ability to continue as a going concern depends on successfully reaching debt extension agreements, increasing coal business profitability, and securing external financing[72](index=72&type=chunk) [Other Information](index=27&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Update on the Company's Action Plan](index=27&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%A1%8C%E5%8B%95%E8%A8%88%E5%8A%83%E4%B9%8B%E6%9C%80%E6%96%B0%E6%83%85%E6%B3%81) The Company is negotiating with potential investors and major creditors for debt restructuring and repayment extensions, having made preliminary progress, but awaits creditors' consideration of proposed terms - The Company is negotiating potential investment terms with a state-owned enterprise in China (a potential investor) as part of a debt restructuring plan[74](index=74&type=chunk) - The Company has held discussions with 2017 noteholders, other creditors, and associates, and the potential investor has proposed terms to the 2017 noteholders[74](index=74&type=chunk)[78](index=78&type=chunk) - The Company has requested other creditors to refrain from taking action until the potential restructuring is finalized, and currently, no other creditors have taken any action[78](index=78&type=chunk) - The Company has initiated discussions with the 2024 convertible bondholders regarding an extension of the maturity date[78](index=78&type=chunk) | Date | Action | | :--- | :--- | | April to August 2025 | Seeking and negotiating with potential investors for potential restructuring | | April to August 2025 | Negotiating with 2017 noteholders for settlement/extension | | April to September 2025 | Negotiating with other creditors for settlement/extension | | April to September 2025 | Negotiating with the Company's associates for repayment terms of amounts payable to associates | | Before end of December 2025 | Completion of potential restructuring and settlement/extension with 2017 noteholders | | Before end of December 2025 | Execution of extension/settlement agreements with other creditors | | Before end of December 2025 | Execution of agreements with associates regarding repayment terms | [Share Capital and Capital Structure](index=28&type=section&id=%E8%82%A1%E6%9C%AC%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) Details of the Company's share capital changes are provided in Note 13, with no significant changes during the period - Details of the Company's share capital changes are set out in Note 13[76](index=76&type=chunk) [Pledge of Assets](index=28&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) The equity of certain subsidiaries, receivables, and Cambodian land have been pledged for the 2017 convertible bonds - To secure the 2017 convertible bonds, the entire issued share capital of certain subsidiaries of the Company, the Company's shares and convertible loan notes owned by China Energy (Hong Kong) Holdings Limited, receivables due to the Company, and certain land in Cambodia have been pledged[77](index=77&type=chunk) [Foreign Exchange Risk](index=29&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group currently has no foreign currency hedging policy and anticipates no significant short-term currency risk, but long-term or substantial changes in RMB to HKD exchange rates could impact results - The Group currently has no foreign currency hedging policy and anticipates no significant short-term currency risk[79](index=79&type=chunk) - Long-term or substantial changes in the exchange rate of Renminbi against Hong Kong Dollars may impact the Group's results and financial position[79](index=79&type=chunk) [Treasury Policy](index=29&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group funds its operations through internal resources, equity, and/or debt financing activities, considering all favorable financing methods - The Group generally funds its business operations through internally generated resources, equity, and/or proceeds from debt financing activities[80](index=80&type=chunk) [Material Investments and Material Acquisitions and/or Disposals](index=29&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E2%88%95%E6%88%96%E5%87%BA%E5%94%AE) During the period, the Group held no material investments and made no material acquisitions and/or disposals of subsidiaries, associates, and joint ventures - During the period, the Group held no material investments and made no material acquisitions and/or disposals of subsidiaries, associates, and joint ventures[81](index=81&type=chunk) [Contingent Liabilities and Capital Commitments](index=29&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no material contingent liabilities or capital commitments contracted but not provided for - As of June 30, 2025, and December 31, 2024, the Group had no material contingent liabilities[82](index=82&type=chunk) - The Group had no capital commitments contracted but not provided for in respect of the acquisition of property, plant and equipment as of June 30, 2025[82](index=82&type=chunk) [Employees and Remuneration Policy](index=29&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group's employee count slightly decreased, with remuneration policies based on market conditions, individual performance, qualifications, and experience, offering various benefits | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 46 | 47 | - The Group determines remuneration based on employee performance, work experience, and current market prices, offering benefits such as Mandatory Provident Fund, insurance, medical allowances, and training programs[83](index=83&type=chunk) [Compliance with Regulations](index=30&type=section&id=%E6%A2%9D%E4%BE%8B%E9%81%B5%E5%AE%88%E6%83%85%E6%B3%81) During the period, the Group experienced no material non-compliance with relevant laws and regulations that significantly impacted its operations - During the period, there were no events of non-compliance with relevant laws and regulations that had a material impact on the Group[84](index=84&type=chunk) [Prospects](index=30&type=section&id=%E5%89%8D%E6%99%AF) For the second half of 2025, the coking coal market is expected to remain in an adjustment phase with prices gradually stabilizing but unlikely to rebound strongly, as the Group maintains a pragmatic and stable operating strategy focused on cost control and operational efficiency - In the second half of 2025, the coking coal market is expected to remain in an adjustment phase, with demand prospects depending on China's macroeconomic recovery, while a moderate rebound in the steel industry may provide some support[85](index=85&type=chunk) - The Group anticipates that coking coal prices are unlikely to rebound strongly in the near term but may gradually emerge from the trough and stabilize[85](index=85&type=chunk) - The Group will continue to adopt a pragmatic and stable operating strategy, prioritizing continuous and stable service to existing customers, and consolidating its professional advantages in coal washing, blending, and coking coal supply[86](index=86&type=chunk) - The Group will further promote cost control, improve operational efficiency, and strengthen internal management to enhance overall risk resistance capabilities[86](index=86&type=chunk) [Purchase, Sale and Redemption of Shares](index=30&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%8A%E8%B4%96%E5%9B%9E%E8%82%A1%E4%BB%BD) During the period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities, and no treasury shares were held at period-end - During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[87](index=87&type=chunk) [Standard Code for Securities Transactions by Directors](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) 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 throughout the period - 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 throughout the period[88](index=88&type=chunk) [Compliance with Corporate Governance Code](index=31&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F%E5%AE%88%E5%88%99) The Company complied with the Corporate Governance Code during the period, with the exception of the Chairman and CEO roles being held by the same person, an arrangement the Board deems appropriate - Mr Xie Nanyang, the Chairman of the Company, also serves as the Chief Executive Officer, which constitutes a deviation from Code Provision C.2.1 of the Corporate Governance Code[89](index=89&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer facilitates the execution of business strategies and enhances operational efficiency, and that the Board has an appropriate structure of checks and balances[89](index=89&type=chunk) [Audit Committee Review of Interim Results](index=31&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial information for the period - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial information for the period[90](index=90&type=chunk) [Publication of Consolidated Interim Results and 2025 Interim Report on HKEX and Company Website](index=32&type=section&id=%E6%96%BC%E8%81%AF%E4%BA%A4%E6%89%80%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BB%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the HKEX and Company websites, and the 2025 Interim Report will be dispatched to shareholders and published in due course - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.irasia.com/listco/hk/greenleader)[91](index=91&type=chunk) - The 2025 Interim Report, containing all information required by the Listing Rules, will be dispatched to the Company's shareholders and published in due course[91](index=91&type=chunk)

截至2025年6月30日止六個月之 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計綜合業績。該等 中期業績乃根據國際會計準則第34號「中期財務報告」編製，且已由核數師及審計 委員會審閱。 主要摘要 財務概要 | | 截至6月30日止六個月 | | | | | | --- | --- | --- | --- | --- | --- | | | 2025年 2024年 | | | | | | | | 佔總收入 | | 佔總收入 | | | | 金額 | 百分比 | 金額 | 百分比 | 同比變動 | | | （未經審計） | | | | | | | （人民幣千元，除非為百分比） | | | | | | 收入 | 2,358,198 | 100.0 | 1,739,717 | 100.0 | 35.6% | | 毛利 | 907,800 | 38.5 | 766,760 | 44.1 | 18.4% | | 期間虧損 | (1,489,270) | (63.2) | (2,477,212) | (142.4) | -39.9% | | EBITDA | (847,692) | (35. ...

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) The company's H1 2025 performance shows revenue growth, increased net profit, and stable property management scale Key Financial and Operational Data for H1 2025 | Metric | Amount/Value | YoY Change | Notes | | :--- | :--- | :--- | :--- | | Revenue | RMB 1,216.3 million | Approx. 5.6% increase | | | Net Profit | RMB 60.9 million | - | Net profit attributable to owners of the parent company approx. RMB 63.8 million | | Core Net Profit* | RMB 108.7 million | Approx. 6.3% increase | Excluding non-recurring expenses | | Total contracted GFA for property management services | 133.2 million sq.m. | - | As of June 30, 2025 | | Total GFA under management for property management services | 125.9 million sq.m. | - | As of June 30, 2025 | | Interim Dividend | Not recommended for distribution | - | | * Net profit after excluding certain non-operating and/or non-recurring items (including impairment losses on financial and contract assets and equity-related gains/losses) [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the interim condensed consolidated financial statements, detailing the company's income, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue increased by 5.6% year-on-year to RMB 1,216.3 million, with net profit significantly growing to RMB 60.9 million, primarily due to a substantial increase in other income and gains despite a slight decrease in gross profit Key Data from Interim Condensed Consolidated Statement of Profit or Loss | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,216,348 | 1,151,455 | 5.6% | | Cost of sales | (972,160) | (900,459) | 8.0% | | Gross profit | 244,188 | 250,996 | -2.7% | | Other income and gains | 49,536 | 10,411 | 375.8% | | Administrative expenses | (95,682) | (108,581) | -11.9% | | Net impairment losses on financial and contract assets | (91,646) | (74,886) | 22.4% | | Profit before tax | 82,169 | 57,018 | 44.1% | | Profit for the period | 60,947 | 42,353 | 43.9% | | Profit attributable to owners of the parent company | 63,838 | 40,743 | 56.7% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's total comprehensive income for the period increased to RMB 59.3 million from RMB 42.6 million in the prior period, primarily driven by profit growth for the period, while exchange differences negatively impacted comprehensive income Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 60,947 | 42,353 | | Exchange differences on translation of financial statements of overseas subsidiaries | (19,446) | (8,590) | | Exchange differences on translation of financial statements of the Company | 17,807 | 8,865 | | Other comprehensive (loss)/income for the period | (1,639) | 275 | | Total comprehensive income for the period | 59,308 | 42,628 | | Total comprehensive income attributable to owners of the parent company | 62,199 | 41,018 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets slightly increased, net current assets improved, and financial position remained stable, with a slight decrease in non-current assets and a reduction in total current liabilities Key Data from Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 509,177 | 534,060 | | Total current assets | 2,089,790 | 2,057,883 | | Total current liabilities | 1,108,679 | 1,123,392 | | Net current assets | 981,111 | 934,491 | | Total assets less current liabilities | 1,490,288 | 1,468,551 | | Total non-current liabilities | 23,315 | 25,067 | | Net assets | 1,466,973 | 1,443,484 | | Equity attributable to owners of the parent company | 1,398,016 | 1,327,719 | | Total equity | 1,466,973 | 1,443,484 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes on the interim condensed consolidated financial information, covering general company details, accounting policies, segment reporting, and specific financial line items [1. General Information](index=6&type=section&id=1.%20General%20Information) Times Neighborhood Holdings Limited was incorporated in the Cayman Islands, primarily engages in property management and related services in China, and was listed on the HKEX in 2019, with its direct and ultimate holding companies being Zhuoyuan Ventures Limited and Jiaming Investment Limited, respectively - The Company was incorporated in the Cayman Islands on July 12, 2019, and listed on the Main Board of the Stock Exchange of Hong Kong on December 19, 2019[10](index=10&type=chunk)[11](index=11&type=chunk) - The Group is principally engaged in property management and other related services in China[10](index=10&type=chunk) - The immediate holding company is Zhuoyuan Ventures Limited, and the ultimate holding company is Jiaming Investment Limited[11](index=11&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) 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 - The interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[12](index=12&type=chunk) - The interim financial information should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[12](index=12&type=chunk) [3. Changes in Accounting Policies and Disclosures](index=6&type=section&id=3.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The accounting policies adopted in this period are consistent with the prior year, with the only new adoption being the amendments to IAS 21 "Lack of Exchangeability," which had no significant financial impact on the interim financial information - The accounting policies adopted in the preparation of the interim financial information are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year 2024[13](index=13&type=chunk) - The Group has initially adopted the amendments to IAS 21 "Lack of Exchangeability," which had no significant financial impact on the interim financial information[14](index=14&type=chunk) [4. Operating Segment Information](index=7&type=section&id=4.%20Operating%20Segment%20Information) The Group primarily provides property management, community value-added, and other professional services, but no operating segment information is presented due to resource integration and the absence of separate operating segment data; all external customer revenue and non-current assets are predominantly from Mainland China - The Group is engaged in the provision of property management services, community value-added services, and other professional services[15](index=15&type=chunk) - No operating segment information is presented as the Group's resources are integrated, and no separate operating segment information is provided[15](index=15&type=chunk) - The Group's revenue from external customers is solely derived from its operations in Mainland China, and its non-current assets are also primarily located in Mainland China[16](index=16&type=chunk) - For the six months ended June 30, 2025, no single customer or group of customers under common control generated revenue amounting to 10% or more of the Group's revenue[17](index=17&type=chunk) [5. Revenue](index=8&type=section&id=5.%20Revenue) The Group's total revenue increased by 5.6% year-on-year to RMB 1,216.3 million, with property management services remaining the primary revenue source and community value-added services also showing growth Revenue Analysis (by Service Type) | Service Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Services transferred over time:** | | | | | Property management services | 964,294 | 910,306 | 5.9% | | Community value-added services | 133,391 | 117,050 | 14.0% | | Other professional services | 89,359 | 89,640 | -0.3% | | Subtotal | 1,187,044 | 1,116,996 | 6.3% | | **Goods transferred at a point in time:** | | | | | Community value-added services | 18,585 | 19,062 | -2.5% | | Other professional services | 10,719 | 15,397 | -30.4% | | Subtotal | 29,304 | 34,459 | -14.9% | | **Total** | **1,216,348** | **1,151,455** | **5.6%** | [6. Profit Before Tax](index=9&type=section&id=6.%20Profit%20Before%20Tax) The Group's profit before tax is calculated after deducting various costs and expenses, including service costs, depreciation, amortization, R&D costs, employee benefits, and financial asset impairment losses, while also including bank interest income, government grants, foreign exchange gains, and fair value gains on put options Key Deductions/Additions to Profit Before Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of services provided | 961,202 | 879,261 | | Cost of inventories sold | 10,958 | 21,198 | | Depreciation of property, plant and equipment | 8,994 | 10,670 | | Depreciation of right-of-use assets | 1,790 | 2,718 | | Amortisation of other intangible assets | 24,882 | 26,650 | | Research and development costs (expensed in current period) | 1,188 | 4,519 | | Total employee benefit expenses | 242,535 | 243,597 | | Impairment losses on financial and contract assets (trade receivables) | 37,938 | 59,790 | | Impairment losses on financial and contract assets (prepayments, deposits and other receivables) | 53,708 | 15,082 | | Bank interest income | (2,803) | (5,082) | | Government grants | (4,147) | (421) | | Fair value gain on put option | (34,201) | – | - Employee benefit expenses, depreciation of property, plant and equipment, amortisation of other intangible assets, and lease expenses included in cost of services provided totaled **RMB 205.65 million** (H1 2024: RMB 205.55 million)[20](index=20&type=chunk) [7. Finance Costs](index=10&type=section&id=7.%20Finance%20Costs) The Group's finance costs primarily consist of interest expenses on lease liabilities, amounting to RMB 255 thousand for the six months ended June 30, 2025, an increase from the prior period Breakdown of Finance Costs | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest expense on lease liabilities | 255 | 181 | [8. Income Tax](index=10&type=section&id=8.%20Income%20Tax) The Group's income tax expense primarily arises from Mainland China subsidiaries, some of which enjoy preferential tax rates, totaling RMB 21.2 million for the six months ended June 30, 2025, an increase from the prior period - Entities incorporated in the Cayman Islands and British Virgin Islands are not subject to any income tax, and there was no assessable profit in Hong Kong[23](index=23&type=chunk) - Subsidiaries operating in Mainland China are subject to a corporate income tax rate of 25%, with some enjoying preferential rates of 15% or 20%[23](index=23&type=chunk) Breakdown of Income Tax Expense | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | 27,850 | 28,603 | | Deferred income tax | (6,628) | (13,938) | | Total tax expense for the period | 21,222 | 14,665 | [9. Dividends](index=11&type=section&id=9.%20Dividends) The company distributed a final dividend of RMB 3.6 cents per share for 2024, totaling RMB 35.484 million, in June 2025, and the Board does not recommend an interim dividend for the six months ended June 30, 2025 - A proposed final dividend of **RMB 3.6 cents per share** (totaling **RMB 35.484 million**) for 2024 was approved at the annual general meeting on May 29, 2025, and distributed in June 2025[25](index=25&type=chunk) - No interim dividend was recommended for the period (H1 2024: nil)[26](index=26&type=chunk) [10. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent Company](index=11&type=section&id=10.%20Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent%20Company) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to ordinary equity holders of the parent company increased to RMB 6 cents, up from RMB 4 cents in the prior period Earnings Per Share Calculation | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent company (RMB thousand) | 63,838 | 40,743 | | Weighted average number of ordinary shares in issue during the period (thousand shares) | 982,323 | 982,323 | | Earnings per share (basic and diluted, RMB cents per share) | 6 | 4 | - The Group had no potentially dilutive ordinary shares in issue for the six months ended June 30, 2025 and 2024[28](index=28&type=chunk) [11. Trade Receivables](index=12&type=section&id=11.%20Trade%20Receivables) As of June 30, 2025, total trade receivables amounted to RMB 840.1 million, an increase of approximately RMB 76.2 million from the end of 2024, primarily due to business expansion and extended collection periods, with the highest proportion being aged within one year Breakdown of Trade Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Related parties | 546,151 | 547,482 | | Third parties | 886,412 | 776,488 | | Subtotal | 1,432,563 | 1,323,970 | | Impairment | (592,479) | (560,100) | | Total | 840,084 | 763,870 | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 618,790 | 560,801 | | 1 to 2 years | 112,658 | 102,291 | | 2 to 3 years | 66,822 | 85,641 | | 3 to 4 years | 33,056 | 10,330 | | 4 to 5 years | 8,758 | 4,807 | | Total | 840,084 | 763,870 | [12. Trade Payables](index=12&type=section&id=12.%20Trade%20Payables) As of June 30, 2025, total trade payables amounted to RMB 587.5 million, a slight increase from the end of 2024, primarily due to rising outsourced personnel and equipment maintenance costs driven by business expansion Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 473,439 | 407,393 | | Over 1 year | 114,040 | 173,073 | | Total | 587,479 | 580,466 | - Trade payables are unsecured and non-interest-bearing, typically settled within 60 days[30](index=30&type=chunk) [Business Review](index=13&type=section&id=Business%20Review) This section provides an overview of the Group's business, highlighting its strategic positioning, operational achievements, and detailed performance across various service segments [Overview](index=13&type=section&id=Overview) Times Neighborhood, a leading modern service enterprise in China, focuses on asset value operation and management, building a "technology + service" platform through digitalization, and in H1 2025, received multiple industry awards, affirmed its brand value, and will drive enterprise upgrade around "four strategic cores," with total contracted GFA of 133.2 million sq.m. and total GFA under management of 125.9 million sq.m. as of June 30, 2025 - Times Neighborhood was awarded multiple prestigious honors, including "2025 China Property Service Top 11 Enterprises" (maintaining for 4 consecutive years) and "2025 China Property Service Top 7 Leading Enterprises in Service Quality"[31](index=31&type=chunk) - The company's brand value was assessed at **RMB 9.83 billion**, receiving awards such as "2025 China Property Service Enterprise Brand Value Top 100"[31](index=31&type=chunk) - Future strategic layout will revolve around four core strategies: "scale fission, dual-wheel ecosystem, value guardianship, and genetic reshaping"[33](index=33&type=chunk) Property Management Scale (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Contracted property management projects | 999 | | Total contracted GFA | 133.2 million sq.m. | | Property management projects under management | 930 | | Total GFA under management | 125.9 million sq.m. | [Business Model](index=14&type=section&id=Business%20Model) The Group's business model encompasses property management, community value-added, and other professional services, comprehensively covering the property management value chain, with all segments continuously developing, property management services having the highest revenue contribution, and community value-added services showing significant growth [Property Management Services](index=14&type=section&id=Property%20Management%20Services) Property management services, the Group's core business, generated approximately RMB 964.3 million in H1 2025 revenue, a 5.9% year-on-year increase, accounting for 79.3% of total revenue, driven by continuous optimization of the managed property portfolio, expansion of third-party outreach, and deep cultivation in South China, with 75.7% of properties located in first-tier, new first-tier, and second-tier cities - Property management services revenue was approximately **RMB 964.3 million**, an increase of approximately **5.9%** compared to the prior period, with its proportion of total revenue rising to **79.3%**[35](index=35&type=chunk) - As of June 30, 2025, property management services covered **84 cities**, with **930 projects** under management and a GFA under management of approximately **125.9 million sq.m.**[35](index=35&type=chunk) Changes in Contracted and Managed GFA for Property Management | Metric | June 30, 2025 (thousand sq.m.) | June 30, 2024 (thousand sq.m.) | | :--- | :--- | :--- | | Contracted GFA at beginning of period | 125,759 | 117,577 | | Contracted GFA at end of period | 133,241 | 119,065 | | GFA under management at beginning of period | 118,827 | 110,933 | | GFA under management at end of period | 125,918 | 111,297 | | New business (under management) | 9,833 | 4,106 | | Terminated (under management) | (2,742) | (3,742) | - The Group has cultivated the South China region for over 20 years, with approximately **63.2 million sq.m.** of projects under management located in South China, accounting for **50.2%** of the total GFA under management[38](index=38&type=chunk) - **75.7%** of properties are located in first-tier, new first-tier, and second-tier cities, with **54.2%** being residential projects[38](index=38&type=chunk) Property Management GFA Under Management and Revenue (by Property Type) | Property Type | H1 2025 GFA under management (thousand sq.m.) | H1 2025 Revenue (RMB thousand) | H1 2024 GFA under management (thousand sq.m.) | H1 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Residential properties | 74,410 (59.1%) | 652,190 (67.6%) | 69,060 (62.1%) | 607,616 (66.8%) | | Non-residential properties | 51,508 (40.9%) | 312,104 (32.4%) | 42,237 (37.9%) | 302,690 (33.2%) | | Total | 125,918 (100.0%) | 964,294 (100.0%) | 111,297 (100.0%) | 910,306 (100.0%) | - Third-party expansion is the primary driver of the Group's scale growth, with GFA under management increasing by **18.9%** year-on-year, and its proportion of total GFA under management rising to **73.0%**[42](index=42&type=chunk)[44](index=44&type=chunk) - Property management revenue from properties developed by third-party property developers was approximately **RMB 545.1 million**, an increase of **8.7%** year-on-year, and its proportion of total property management revenue increased to **56.5%**[44](index=44&type=chunk) [Community Value-Added Services](index=19&type=section&id=Community%20Value-Added%20Services) Community value-added services encompass public space leasing, parking management, and lifestyle services (such as move-in assistance, home renovation, asset management, and housekeeping), generating approximately RMB 152.0 million in H1 2025 revenue, an 11.7% year-on-year increase, with lifestyle services revenue growing by 17.2% - Community value-added services include public space leasing and parking management, as well as lifestyle services, which primarily comprise move-in assistance, home renovation, asset management, and housekeeping services[45](index=45&type=chunk) Breakdown of Community Value-Added Services Revenue | Service Type | H1 2025 Revenue (RMB thousand) | H1 2025 Proportion (%) | H1 2024 Revenue (RMB thousand) | H1 2024 Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Public space leasing and parking management | 60,104 | 39.5 | 57,694 | 42.4 | | Lifestyle services | 91,872 | 60.5 | 78,418 | 57.6 | | Total | 151,976 | 100.0 | 136,112 | 100.0 | - Community value-added services revenue was approximately **RMB 152.0 million**, an increase of approximately **11.7%** compared to the prior period[46](index=46&type=chunk) - Lifestyle services revenue recorded **RMB 91.9 million**, an increase of approximately **17.2%** compared to the prior period[46](index=46&type=chunk) [Other Professional Services](index=20&type=section&id=Other%20Professional%20Services) Other professional services include elevator services, smart technology services, and urban public services, with total revenue of RMB 100.1 million in H1 2025, a slight year-on-year decrease, where urban public services are the main component with total contracted amount of approximately RMB 480.1 million - Other professional services include elevator services (sales, installation, repair, and maintenance), smart technology services, and urban public services[47](index=47&type=chunk) Breakdown of Other Professional Services Revenue | Service Type | H1 2025 Revenue (RMB thousand) | H1 2025 Proportion (%) | H1 2024 Revenue (RMB thousand) | H1 2024 Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Urban public services | 74,170 | 74.1 | 76,441 | 72.8 | | Elevator services | 22,971 | 23.0 | 25,460 | 24.2 | | Smart technology services | 2,937 | 2.9 | 3,136 | 3.0 | | Total | 100,078 | 100.0 | 105,037 | 100.0 | - As of June 30, 2025, there were **21 urban public service projects**, with a total contracted amount of approximately **RMB 480.1 million**[48](index=48&type=chunk) [Industry Review and Future Outlook](index=21&type=section&id=Industry%20Review%20and%20Future%20Outlook) This section reviews the property service industry's performance in H1 2025 and outlines the Group's strategic outlook amidst economic trends and policy support [Industry Review](index=21&type=section&id=Industry%20Review) In H1 2025, China's property service industry developed steadily amidst economic recovery and policy support, exhibiting "rigid demand + long cycle" characteristics, with growth in both basic property and community value-added services, and continued increase in concentration among leading enterprises - China's GDP grew by **5.3%** year-on-year in H1 2025, with policy-level initiatives continuously promoting urban renewal, opening up new opportunities for existing community operations and maintenance[49](index=49&type=chunk) - The property service industry continued its "rigid demand + long cycle" characteristics, covering both "incremental + existing" markets, with a steady increase in the proportion of basic property service revenue and accelerated growth in community value-added services[49](index=49&type=chunk) - According to China Index Academy, from January to June 2025, the top 50 property service enterprises added approximately **350 million sq.m.** in contracted GFA, with third-party market expansion totaling **290 million sq.m.**, further increasing concentration among leading players[49](index=49&type=chunk) [Future Outlook](index=21&type=section&id=Future%20Outlook) Looking ahead to H2 2025, despite external uncertainties, China's domestic "stabilize growth, expand domestic demand, boost confidence" policies will solidify the industry's foundation, with total GFA under management for the national property service industry projected to reach 37.537 billion sq.m. by 2029, indicating broad industry prospects, and the Group will leverage residential services as its base, focus on core city clusters and business types, firmly advance digital transformation, and enhance service quality and operational returns - The IMF projects global growth of approximately **3.0%** in 2025, and China's domestic policy mix of "stabilizing growth, expanding domestic demand, and boosting confidence" will continue to exert force[50](index=50&type=chunk) - China Index Academy predicts that by 2029, the total GFA under management for the national property service industry will increase to **37.537 billion sq.m.**, indicating vast industry potential[50](index=50&type=chunk) - The Group will use residential services as its foundation, focus on core city clusters and key business types, and continue to exert efforts in residential, public, commercial, and industrial park sectors[50](index=50&type=chunk) - The Group will firmly advance its digital transformation, enhancing human efficiency through "grid management + data middle platform" and setting "customer experience and operational quality" as its work standards[51](index=51&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) This section provides a detailed financial review, analyzing key performance indicators such as revenue, costs, gross profit, net profit, and changes in balance sheet items, along with the Group's overall financial health [Revenue](index=22&type=section&id=Revenue) The Group's H1 2025 revenue was approximately RMB 1,216.3 million, a 5.6% year-on-year increase, with property management services remaining the largest revenue source, accounting for 79.3% of total revenue, primarily driven by third-party market expansion, and community value-added services also achieving 11.7% growth - The Group's revenue increased from approximately **RMB 1,151.5 million** in H1 2024 to approximately **RMB 1,216.3 million** in H1 2025, an increase of approximately **5.6%**[52](index=52&type=chunk) Revenue Breakdown by Operating Segment | Operating Segment | H1 2025 Revenue (RMB million) | H1 2025 Proportion (%) | H1 2024 Revenue (RMB million) | H1 2024 Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 964.3 | 79.3 | 910.3 | 79.1 | | Community value-added services | 152.0 | 12.5 | 136.1 | 11.8 | | Other professional services | 100.0 | 8.2 | 105.1 | 9.1 | | Total | 1,216.3 | 100.0 | 1,151.5 | 100.0 | - Property management services revenue increased by approximately **RMB 54.0 million**, or approximately **5.9%**, primarily due to an **18.9%** year-on-year increase in GFA under management from third-party developers[53](index=53&type=chunk) - Community value-added services revenue increased by **RMB 15.9 million** year-on-year, or approximately **11.7%**[53](index=53&type=chunk) [Cost of Sales](index=23&type=section&id=Cost%20of%20Sales) Cost of sales for H1 2025 was approximately RMB 972.2 million, an 8.0% year-on-year increase, primarily due to expanded GFA under management and business scale, diversified value-added services, and increased investment in community repair and maintenance for managed projects - Total cost of sales was approximately **RMB 972.2 million**, an increase of approximately **RMB 71.7 million** or approximately **8.0%** compared to H1 2024[54](index=54&type=chunk) - The increase in cost of sales was mainly due to the expansion of GFA under management and business scale during the period, along with the diversification of value-added services, leading to corresponding increases in various costs[54](index=54&type=chunk) - Increased investment in community repair and maintenance for managed projects to improve community environment and enhance service quality[54](index=54&type=chunk) [Gross Profit and Gross Profit Margin](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit for H1 2025 decreased by 2.7% to RMB 244.2 million, with the overall gross profit margin decreasing by 1.7 percentage points year-on-year to 20.1%, primarily due to a 2.3 percentage point decline in property management services gross profit margin and a 1.3 percentage point decline in community value-added services gross profit margin due to changes in business structure - Gross profit decreased from approximately **RMB 251.0 million** in H1 2024 to approximately **RMB 244.2 million** in H1 2025, a decrease of approximately **2.7%**[55](index=55&type=chunk) Gross Profit Margin by Business Line | Business Line | H1 2025 Gross Profit Margin (%) | H1 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | | Property management services | 18.2 | 20.5 | | Community value-added services | 40.6 | 41.9 | | Other professional services | 6.8 | 6.8 | | Overall Gross Profit Margin | 20.1 | 21.8 | - The gross profit margin for property management services decreased by **2.3 percentage points**, mainly due to increased investment in community repair and maintenance for managed projects[57](index=57&type=chunk) - The gross profit margin for community value-added services decreased by **1.3 percentage points**, mainly due to the increased proportion of lifestyle services revenue, which has a relatively lower gross profit margin[58](index=58&type=chunk) [Other Income and Gains](index=24&type=section&id=Other%20Income%20and%20Gains) Other income and gains for H1 2025 significantly increased by 376.0% to RMB 49.5 million, primarily due to the recognition of a fair value gain on a put option of RMB 34.2 million - Other income and gains increased from approximately **RMB 10.4 million** in H1 2024 to approximately **RMB 49.5 million** in H1 2025, an increase of approximately **376.0%**[60](index=60&type=chunk) - This increase was mainly due to the recognition of a fair value gain on a put option of **RMB 34.2 million** during the period[60](index=60&type=chunk) [Administrative Expenses](index=24&type=section&id=Administrative%20Expenses) Total administrative expenses for H1 2025 were approximately RMB 95.7 million, a 11.9% year-on-year decrease, primarily benefiting from streamlined organizational structure, optimized management processes, and the application of smart technology equipment - Total administrative expenses were approximately **RMB 95.7 million**, a decrease of approximately **RMB 12.9 million** or approximately **11.9%** compared to H1 2024[61](index=61&type=chunk) - The decrease was mainly due to the Group's further streamlining of its organizational structure, optimizing management processes, and applying smart technology equipment[61](index=61&type=chunk) [Net Impairment Losses on Financial and Contract Assets](index=24&type=section&id=Net%20Impairment%20Losses%20on%20Financial%20and%20Contract%20Assets) Net impairment losses on financial and contract assets for H1 2025 increased by approximately RMB 16.7 million to RMB 91.6 million, primarily due to increased credit risk on amounts due from non-controlling shareholders and certain trade receivables, despite a reduction in impairment losses on amounts due from related parties - Net impairment losses on financial and contract assets increased from approximately **RMB 74.9 million** in H1 2024 to approximately **RMB 91.6 million** in H1 2025, an increase of approximately **RMB 16.7 million**[62](index=62&type=chunk) - The increase in impairment losses was mainly due to increased credit risk on amounts due from non-controlling shareholders and certain trade receivables[62](index=62&type=chunk) - Impairment losses on amounts due from related parties decreased compared to the prior period[62](index=62&type=chunk) [Profit for the Period and Core Net Profit](index=25&type=section&id=Profit%20for%20the%20Period%20and%20Core%20Net%20Profit) Net profit for H1 2025 was approximately RMB 60.9 million, a 43.9% year-on-year increase, primarily influenced by the fair value gain on a put option and net impairment losses on financial assets, while core net profit (excluding non-operating and non-recurring items) was approximately RMB 108.7 million, a 6.3% year-on-year increase - For H1 2025, the Group recorded a net profit of approximately **RMB 60.9 million**, compared to approximately **RMB 42.4 million** in H1 2024[66](index=66&type=chunk) - The increase in profit for the period was mainly due to the combined effect of the recognition of a fair value gain on a put option and a year-on-year increase in net impairment losses on financial and contract assets during the period[66](index=66&type=chunk) Reconciliation of Net Profit for the Period to Core Net Profit | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net profit for the period | 60,947 | 42,353 | | Net impairment losses on financial and contract assets* | 82,270 | 60,041 | | Share of profit of associates | (296) | (105) | | Fair value gain on put option | (34,201) | – | | Core net profit for the period | 108,720 | 102,289 | - Net profit attributable to owners of the parent company was approximately **RMB 63.8 million**, an increase of approximately **56.8%**[71](index=71&type=chunk) [Changes in Key Balance Sheet Items](index=26&type=section&id=Changes%20in%20Key%20Balance%20Sheet%20Items) As of June 30, 2025, property, plant and equipment decreased due to depreciation, trade receivables increased due to business expansion and extended collection periods, prepayments, deposits and other receivables decreased due to a lower balance of amounts due from non-controlling shareholders, and trade payables increased due to business scale expansion - Property, plant and equipment amounted to approximately **RMB 74.2 million**, a decrease of approximately **RMB 4.5 million** from December 31, 2024, mainly due to depreciation during the period[72](index=72&type=chunk) - Trade receivables amounted to approximately **RMB 840.1 million**, an increase of approximately **RMB 76.2 million** from December 31, 2024, mainly due to continuous business expansion and extended collection periods[73](index=73&type=chunk) - Prepayments, deposits and other receivables decreased by approximately **7.7%** to approximately **RMB 170.9 million**, mainly due to a decrease in the balance of amounts due from non-controlling shareholders during the period[74](index=74&type=chunk) - Trade payables amounted to approximately **RMB 587.5 million**, an increase of approximately **RMB 7.0 million** or **1.2%** from December 31, 2024, mainly due to increased outsourced personnel costs and equipment maintenance costs resulting from business scale expansion[75](index=75&type=chunk) - Other payables and accrued expenses showed no significant changes[76](index=76&type=chunk) [Financial Position and Capital Structure](index=27&type=section&id=Financial%20Position%20and%20Capital%20Structure) As of June 30, 2025, the Group maintained an excellent financial position with a current ratio of 1.88 times, a net cash position for its net debt-to-equity ratio, and no outstanding interest-bearing borrowings - The current ratio (current assets/current liabilities) was **1.88 times** (December 31, 2024: 1.83 times)[77](index=77&type=chunk) - The net debt-to-equity ratio was **net cash** (December 31, 2024: net cash)[77](index=77&type=chunk) - As of June 30, 2025, the Group had no outstanding interest-bearing borrowings[77](index=77&type=chunk) [Other Financial and Investment Information](index=27&type=section&id=Other%20Financial%20and%20Investment%20Information) This section details the Group's risk management strategies, major investments and acquisitions, and the utilization of net proceeds from its listing and share placement [Risk Management](index=27&type=section&id=Risk%20Management) As of June 30, 2025, the Group had no financial guarantees, asset pledges, or significant contingent liabilities; interest rate risk is minimal due to the absence of significant interest-bearing assets and liabilities; and while closely monitoring RMB exchange rate fluctuations, no foreign exchange hedging activities were undertaken - As of June 30, 2025, the Group had no financial guarantees, asset pledges, or significant contingent liabilities[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - As the Group has no significant interest-bearing assets and liabilities, it is not significantly affected by risks directly related to changes in market interest rates[81](index=81&type=chunk) - The Group primarily operates in China, with most of its business denominated in RMB, and will closely monitor RMB exchange rate fluctuations, but no foreign exchange hedging activities were undertaken as of June 30, 2025[82](index=82&type=chunk) [Major Investments and Acquisitions](index=28&type=section&id=Major%20Investments%20and%20Acquisitions) During the period, the Company completed the acquisition of the remaining 20% equity interest in Chengdu Heda Lianhang Technology Co., Ltd., making it a wholly-owned subsidiary, with no other major investments, significant acquisitions, or disposals of subsidiaries, associates, and joint ventures - On April 24, 2025, Guangzhou Times Property Management Co., Ltd. acquired the remaining **20%** equity interest in Chengdu Heda Lianhang Technology Co., Ltd., making it a wholly-owned subsidiary of the Company[83](index=83&type=chunk) - Save as disclosed above, there were no major investments, significant acquisitions, or disposals of subsidiaries, associates, and joint ventures during the period[83](index=83&type=chunk) [Use of Net Proceeds from Listing](index=29&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The Company's total net proceeds from listing amounted to approximately HKD 786.74 million, with most utilized as disclosed in the prospectus as of June 30, 2025, while the plan for funds to enhance customer service quality has been delayed until on or before December 31, 2028 - The total net proceeds from the listing amounted to approximately **HKD 786.74 million**[86](index=86&type=chunk) Use of Net Proceeds from Listing | Intended Use | % of Total Net Proceeds | Net Proceeds (HKD) | Amount Used as of June 30, 2025 (HKD) | Remaining Unused Proceeds (HKD) | Expected Timeline for Use | | :--- | :--- | :--- | :--- | :--- | :--- | | Seeking selective strategic investment and acquisition opportunities and developing strategic alliances | 65 | 511,383,716 | 511,383,716 | – | Not applicable | | Utilizing advanced technology and building smart communities to enhance customer service quality | 15 | 118,011,627 | 107,117,824 | 10,893,803 | On or before December 31, 2028* | | Further developing a one-stop service platform | 10 | 78,674,417 | 78,674,417 | – | Not applicable | | Working capital and general corporate purposes | 10 | 78,674,418 | 78,674,418 | – | Not applicable | * To ensure more effective utilization of funds for enhancing service quality, the Company decided to further delay the relevant plan. As of the date of this announcement, the Company expects the unused net proceeds to be fully utilized on or before December 31, 2028. [Use of Net Proceeds from Share Placement](index=30&type=section&id=Use%20of%20Net%20Proceeds%20from%20Share%20Placement) The Company's total net proceeds from share placement amounted to approximately HKD 779.60 million, with approximately HKD 256.65 million for potential strategic investments and acquisitions remaining unutilized as of June 30, 2025, now expected to be fully used on or before December 31, 2028 - The total net proceeds from the share placement amounted to approximately **HKD 779.60 million**[88](index=88&type=chunk) Use of Net Proceeds from Share Placement | Intended Use | % of Total Net Proceeds | Net Proceeds (HKD) | Amount Used as of June 30, 2025 (HKD) | Remaining Unused Proceeds (HKD) | Expected Timeline for Use | | :--- | :--- | :--- | :--- | :--- | :--- | | Seeking potential strategic investment and acquisition opportunities | 90 | 701,637,251 | 444,987,318 | 256,649,933 | On or before December 31, 2028* | | General working capital of the Group | 10 | 77,959,695 | 77,959,695 | – | Not applicable | * Due to the Group's more cautious selection and pursuit of strategic investment and acquisition opportunities that align with its long-term development needs, the Company decided to further delay the relevant plan. As of the date of this announcement, the Company expects the unused net proceeds to be fully utilized on or before December 31, 2028. - The Company actively explored any targets related to its core business but did not identify any new investment or acquisition targets, nor did it enter into any agreements for such investments or acquisitions[89](index=89&type=chunk) [Corporate Governance and Other Matters](index=31&type=section&id=Corporate%20Governance%20and%20Other%20Matters) This section addresses the Group's employee and remuneration policies, adherence to corporate governance standards, securities trading, audit committee review, report publication, and updates on operating targets for key subsidiaries [Employees and Remuneration Policy](index=31&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 4,534 full-time employees, with remuneration based on performance, skills, knowledge, experience, and market trends, offering benefits such as provident funds and medical insurance, while regularly reviewing remuneration policies and providing training - As of June 30, 2025, the Group had **4,534 full-time employees** (December 31, 2024: 4,673 employees)[90](index=90&type=chunk) - Employee remuneration is based on performance, skills, knowledge, experience, and market trends, with benefits including provident fund schemes, medical insurance schemes, unemployment insurance schemes, housing provident funds, and MPF[90](index=90&type=chunk) - The Group regularly reviews its remuneration policy and provides training programs[90](index=90&type=chunk) [Corporate Governance and Securities Transactions](index=31&type=section&id=Corporate%20Governance%20and%20Securities%20Transactions) The Company is committed to maintaining high standards of corporate governance, having adopted and complied with all provisions of the HKEX Corporate Governance Code and Model Code during H1 2025, and neither the Company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the period - The Company has adopted the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers set out in the Listing Rules of the Stock Exchange, and has complied with all code provisions throughout H1 2025[91](index=91&type=chunk)[92](index=92&type=chunk) - 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[93](index=93&type=chunk) [Audit Committee and Report Publication](index=32&type=section&id=Audit%20Committee%20and%20Report%20Publication) The Company's Audit Committee has reviewed the interim report and unaudited condensed consolidated interim results, deeming the risk management and internal control systems effective and adequate; the interim results announcement has been published on the HKEX and company websites, and the interim report will be published in due course - The Company's Audit Committee has reviewed the Group's interim report and the unaudited condensed consolidated interim results for the six months ended June 30, 2025[94](index=94&type=chunk) - The Audit Committee considers the risk management and internal control systems to be effective and adequate[94](index=94&type=chunk) - The interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be published on the aforementioned websites and dispatched to shareholders in due course[95](index=95&type=chunk) [Update on Operating Targets for Shanghai Kejian and Chengdu Heda](index=32&type=section&id=Update%20on%20Operating%20Targets%20for%20Shanghai%20Kejian%20and%20Chengdu%20Heda) For Shanghai Kejian, due to credit impairment losses from the pandemic and economic downturn, parties have not yet agreed on the profit guarantee shortfall, and the company is actively negotiating; for Chengdu Heda, it failed to meet the 2021-2023 profit guarantee, with a total shortfall of RMB 33.65 million, which the Company accounted for in the acquisition consideration of the remaining 20% equity, while retaining the right to pursue the remaining outstanding debt from relevant parties - The special audit report on Shanghai Kejian's profit for the year ended December 31, 2022, has been published, but due to significant credit impairment losses caused by the COVID-19 pandemic and China's economic downturn, the parties have not yet agreed on the amount of profit after tax[96](index=96&type=chunk) - The Company will continue to exert its best efforts to negotiate with relevant parties to reach a consensus on the shortfall as soon as possible, and expects the shortfall to be adequately compensated by the non-controlling shareholders' share of profit distribution for 2022[96](index=96&type=chunk)[97](index=97&type=chunk) - Chengdu Heda failed to meet the profit guarantee for the years 2021 to 2023, with a total profit guarantee shortfall of **RMB 33.65 million**[98](index=98&type=chunk) - The Group has further acquired the remaining **20%** equity interest in Chengdu Heda from the vendor under the 2025 Chengdu Heda acquisition agreement, and the consideration for this acquisition has accounted for the outstanding debt of **RMB 86.73 million** jointly owed by the vendor and former target shareholders to the buyer and target company, which includes the aforementioned profit guarantee shortfall[99](index=99&type=chunk) - Upon completion of the acquisition, the vendor and guarantor's obligations under the profit guarantee have been fulfilled, and the buyer still retains the right to exercise its claims against Qinyue Junyu and Chengdu Daoning for the remaining outstanding debt totaling **RMB 45.05 million**[99](index=99&type=chunk)

[Company Overview](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88) [Company Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) Kindstar Globalgene Technology, Inc. was incorporated in the Cayman Islands on August 24, 2007, with shares listed on the Hong Kong Stock Exchange since July 16, 2021; the Group primarily provides clinical testing services in China - The company was incorporated in the Cayman Islands on August 24, 2007, and its shares were listed on the Hong Kong Stock Exchange on July 16, 2021[2](index=2&type=chunk) - The Group primarily engages in providing clinical testing services in China[71](index=71&type=chunk) [Financial Highlights](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, total revenue decreased by 3.5% to RMB 456.9 million, gross profit fell 13.0% to RMB 196.5 million, and net profit turned to a loss of RMB 32.6 million Table: Financial Highlights | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 456,919 | 473,335 | (3.5) | | Gross Profit | 196,530 | 225,790 | (13.0) | | Gross Profit Margin (%) | 43.0 | 47.7 | (4.7) percentage points | | Net (Loss) / Profit | (32,636) | 10,528 | (410.0) | | Net (Loss) / Profit Margin (%) | (7.1) | 2.2 | (9.3) percentage points | [Management Discussion and Analysis](index=2&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Executive Summary](index=2&type=section&id=%E5%9F%B7%E8%A1%8C%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, revenue decreased by 3.5%, gross profit by 13.0%, and net profit turned to a loss of RMB 32.6 million, driven by market challenges, pricing pressure, fair value losses, and M&A expenses, while the company advanced in specialized testing, optimized operations, and expanded through strategic acquisitions - Revenue decreased by **3.5%** to **RMB 456.9 million**, gross profit decreased by **13.0%** to **RMB 196.5 million**, and net loss was **RMB 32.6 million**[4](index=4&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - The net loss was primarily due to decreased revenue, fair value losses on funds, expected credit losses on COVID-19 related receivables, and expenses and losses from acquired subsidiaries[8](index=8&type=chunk) - The company steadily advanced in a complex market, optimizing operational strategies and ensuring comprehensive upgrades in business models and compliance management[9](index=9&type=chunk) - Market position in key specialized areas was consolidated through deepened application of multi-technology platforms and expansion of multiple testing projects, with continuous strategic M&A initiatives[9](index=9&type=chunk) [Financial Performance Overview](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%A6%82%E8%A7%88) During the reporting period, total revenue decreased by 3.5% to RMB 456.9 million, gross profit fell 13.0% to RMB 196.5 million, and net profit turned to a loss of RMB 32.6 million, influenced by market conditions, increased costs, fair value changes in funds, and M&A expenses - Revenue decreased by **3.5%** to **RMB 456.9 million**, primarily due to challenging external market conditions and downward pricing pressure on testing services[6](index=6&type=chunk) - Gross profit decreased by **13.0%** to **RMB 196.5 million**, with the gross profit margin falling from 47.7% to 43.0%, mainly due to decreased revenue and increased fixed operating costs from new laboratories[7](index=7&type=chunk) - Net loss was approximately **RMB 32.6 million**, a year-on-year decrease of **410%**, with a net loss margin of **7.1%**, primarily due to decreased revenue, fair value losses on funds, expected credit losses on COVID-19 related receivables, and expenses and losses from acquired subsidiaries[8](index=8&type=chunk) [Business Development Overview](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95%E6%A6%82%E8%A7%88) Amidst strengthening industry regulation and growing demand for precision medicine, the company leveraged its specialized testing expertise to optimize operations and upgrade compliance, consolidating its market position through multi-technology platforms and expanded testing projects, while strategic M&A further expanded its business footprint and integrated resources for long-term growth - Leveraging deep expertise in specialized testing, operational strategies were optimized to ensure comprehensive upgrades in business models and compliance management, successfully addressing policy challenges[9](index=9&type=chunk) - Market position in key specialized areas was further consolidated through deepened application of multi-technology platforms and expansion of multiple testing projects[9](index=9&type=chunk) - Strategic M&A continued to advance, achieving orderly business expansion and promoting efficient resource integration and optimal allocation[9](index=9&type=chunk) [Business Operations](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E9%81%8B%E7%87%9F) The company steadily advanced in a complex market by optimizing operations, deepening multi-technology platform applications, and expanding testing projects, consolidating its market position in six core specialized testing areas including hematology, neurology, genetic and rare diseases, infectious diseases, solid tumors, and gynecology, while also driving innovation in immunomics products, specialized reagents, research services, and internet hospitals, and expanding its business footprint through strategic M&A - The company established strong barriers in six core specialized testing areas: hematology, neurology, genetic and rare diseases, infectious diseases, solid tumors, and gynecology[10](index=10&type=chunk) - Market position in key specialized areas was consolidated through deepened application of multi-technology platforms and expansion of multiple testing projects[9](index=9&type=chunk) - Strategic M&A continued to advance, achieving business expansion and resource integration[9](index=9&type=chunk) [Specialized Testing Services](index=3&type=section&id=%E5%B0%88%E7%A7%91%E7%89%B9%E6%AA%A2%E6%A5%AD%E5%8B%99) During the reporting period, the company developed in hematology, neurology, oncology, infectious diseases, maternal and child health, and new specialized testing, with hematology adding over 90 partner hospitals and NGS IG/TCR rearrangement product sales growing over 50%, oncology adding 15 partners with solid tumor large panel and MRD testing growing over 100% and gaining ground in early screening through acquisition, and new specialties like rheumatology and cardiovascular testing steadily rising with new product approvals - Hematology testing: Over **90** new partner hospitals were added, **48** new partner hospitals in pediatric hematology, and NGS IG/TCR rearrangement technology product sales grew over **50%**[10](index=10&type=chunk) - Neurology testing: **34** new testing items were added, **44** new partner hospitals for sample submission, and early deployment of blood tests for neurodegenerative diseases in pharmaceutical collaborations[10](index=10&type=chunk) - Oncology testing: **15** new key cooperative units, including Peking University Cancer Hospital, were added, with solid tumor large panel testing and solid tumor MRD testing growing over **100%** year-on-year[11](index=11&type=chunk) - Oncology testing: The acquisition of Benchmark Medical was completed in January 2025, quickly establishing a presence in solid tumor early screening and diagnosis, with the flagship product FeiYiJian® PulmoSeek® Plus included in the NMPA LDT pilot program[11](index=11&type=chunk) - Infectious disease testing: Self-developed pathogen-targeted high-throughput sequencing product reagents and analysis software were launched, implementing various syndrome-specific pathogen combination products[12](index=12&type=chunk) - Maternal and child specialized business: Growth in pediatric endocrine projects was promoted through L-CBA detection of MOG antibody multi-center studies, and a professional reproductive genetics team was established[12](index=12&type=chunk) - New specialized testing services: Sales of antiphospholipid series and complement factor projects in the rheumatology and immunology testing segment steadily increased, while cardiovascular testing saw **1** new approved Class I reagent filing for mass spectrometry testing, **1** Class II in vitro diagnostic kit, and **3** clinical mass spectrometry laboratories established[13](index=13&type=chunk) [Innovation-Driven and R&D](index=5&type=section&id=%E5%89%B5%E6%96%B0%E9%A9%85%E5%8B%95%E8%88%87%E7%A0%94%E7%99%BC) During the reporting period, the Group's R&D department published 33 articles, applied for 67 patents (29 granted), and obtained 24 copyrights, adding 56 R&D testing projects across molecular biology, flow cytometry, cytogenetics, and pathology, with a focus on CAR-T monitoring, AML MRD monitoring, fusion gene quantitative detection, and MICM comprehensive diagnosis, planning to integrate AI analysis - **33** articles published, **67** patents applied for (**29** granted), and **24** copyrights obtained[14](index=14&type=chunk) - **56** new R&D testing projects added, including molecular biology, flow cytometry, cytogenetics, and pathology testing technologies[14](index=14&type=chunk) - Focus on developing CAR-T monitoring, Acute Myeloid Leukemia MRD monitoring (detection limit improved to **0.1%**), fusion gene quantitative detection (**144** genes), and MICM comprehensive diagnosis, with plans to integrate remote scanning and AI analysis[14](index=14&type=chunk) [Immunomics Products](index=5&type=section&id=%E5%85%8D%E7%96%AB%E7%B5%84%E5%BA%AB%E7%94%A2%E5%93%81) LymphoSeek business expanded to over 160 institutions in 26 provinces for hematological tumor minimal residual disease detection, with revenue growing nearly 30% year-on-year; Kindstar Biotech's Ig/TCR project achieved a perfect score in the EuroClonality EQA program, becoming the only one nationwide, while Kindstar Health deepened health monitoring collaborations, PanTCR focused on immune reconstruction and monitoring, and explored immune therapy efficacy evaluation with pharmaceutical companies - LymphoSeek business covers over **160** institutions in **26** provinces, with revenue growing nearly **30%** year-on-year[15](index=15&type=chunk) - Kindstar Biotech's Ig/TCR project achieved a perfect score in the EuroClonality EQA program, making it the only one nationwide[15](index=15&type=chunk) - Kindstar Health deepened health monitoring collaborations, PanTCR focused on immune reconstruction and monitoring, and explored immune therapy efficacy evaluation with pharmaceutical companies[15](index=15&type=chunk) [Specialized Reagents](index=5&type=section&id=%E7%89%B9%E6%AA%A2%E8%A9%A6%E5%8A%91) Haixi Bio's product line continues to expand with over 180 products developed and transferred to production, increased NGS reagent kit compatibility, and 74 fusion gene screening items at a leading domestic level; specialized reagent business proprietary product sales rose over 20% year-on-year, while Benchmark Medical's UriFind®, the first approved kit for urothelial carcinoma auxiliary diagnosis, saw sales grow approximately 82%, and non-invasive gastric cancer early detection product Gastromia® completed clinical registration studies and entered the registration application phase - Haixi Bio's product line is rich, with over **180** products developed and transferred to production, increased NGS reagent kit compatibility with sequencing platforms, and **74** fusion gene screening items at a leading domestic level[16](index=16&type=chunk) - Sales of proprietary products in the specialized reagent business increased by over **20%** year-on-year[16](index=16&type=chunk) - UriFind® sales volume increased by approximately **82%** year-on-year, having completed procurement processes with **11** hospitals and **8** third-party clients[17](index=17&type=chunk) - Non-invasive gastric cancer early detection product Gastromia® (WeiYiJian) has completed in vitro diagnostic reagent registration clinical studies and entered the product registration application phase, with breakthroughs expected in the first quarter of next year[17](index=17&type=chunk) [Research Services and Contract Research Organization](index=6&type=section&id=%E7%A7%91%E7%A0%94%E6%9C%8D%E5%8B%99%E5%8F%8A%E5%90%88%E7%B4%84%E7%A0%94%E7%A9%B6%E7%B5%84%E7%B9%94) The Group, as an official PacBio certified Revio platform sequencing service provider, operates three PacBio Revio systems and has fully upgraded to the latest SPRQ reagents to enhance sequencing throughput; the research services segment added nearly 100 new partner hospitals and enterprises in the first half, with total revenue approaching RMB 20 million, while CRO business secured new contracts worth approximately RMB 9.78 million, with a contract backlog exceeding RMB 37 million - As an official PacBio certified Revio platform sequencing service provider, the company operates **3** PacBio Revio systems and has fully upgraded SPRQ reagents to enhance sequencing throughput[18](index=18&type=chunk) - The research services segment added nearly **100** new partner hospitals and enterprises in the first half, achieving total revenue of nearly **RMB 20 million**[18](index=18&type=chunk) - CRO business secured new contracts worth approximately **RMB 9.78 million**, with a contract backlog exceeding **RMB 37 million**[19](index=19&type=chunk) [Internet Hospital](index=7&type=section&id=%E4%BA%92%E8%81%AF%E7%B6%B2%E9%86%AB%E9%99%A2) "Kindstar Youyi" internet hospital's physician platform has nearly 500 collaborating doctors across over 10 departments, with 27% holding associate senior titles or above; registered users and monthly active users grew significantly, improving service satisfaction, and in the first half of 2025, Kindstar Youyi officially integrated with the DeepSeek AI platform, deeply embedding AI capabilities into its service system to reshape the patient experience - "Kindstar Youyi" internet hospital's physician platform has nearly **500** collaborating doctors, covering over **10** departments, with **27%** holding associate senior titles or above[20](index=20&type=chunk) - Registered users and monthly active users on the platform grew significantly, leading to improved service satisfaction[20](index=20&type=chunk) - Officially integrated with the DeepSeek AI platform, deeply embedding AI capabilities into the internet hospital service system to reshape the patient experience[20](index=20&type=chunk) [Strategic Development](index=7&type=section&id=%E6%88%B0%E7%95%A5%E7%99%BC%E5%B1%95) The company accelerated investment in integrating upstream and downstream industry chain resources, focusing on critical specialized testing areas with urgent clinical needs; strategic investment in Wuhan Tuoruijing strengthened its advanced molecular diagnostic technology layout, and a joint venture with Biostate AI, Wuhan Baisheng Intelligent, will bring AI-driven RNA multi-omics diagnostic technology to China and globally, focusing on five specialized areas including autoimmune diseases and oral cancer; the company actively promotes digital, information, and AI transformation, upgrading its smart order management platform and LIMS system to enhance operational efficiency, and plans to continue deploying multi-omics data integration platforms, AI pathology analysis systems, and automated laboratory technologies to achieve a "introduce-digest-innovate" technology upgrade path - Accelerated investment in integrating upstream and downstream industry chain resources, focusing on critical specialized testing areas with urgent clinical needs[21](index=21&type=chunk) - Actively promoted a tripartite transformation strategy of digitalization, informatization, and artificial intelligence, upgrading the smart order management platform and LIMS system to enhance operational efficiency[24](index=24&type=chunk) - Future plans include continuous deployment of multi-omics data integration platforms, AI pathology analysis systems, and automated laboratory technologies to achieve a "introduce-digest-innovate" technology upgrade path[23](index=23&type=chunk) [External Investments and M&A](index=7&type=section&id=%E5%B0%8D%E5%A4%96%E6%8A%95%E8%B3%87%E8%88%87%E4%BD%B5%E8%B3%BC) In the first half of 2025, the company completed an angel round investment in Wuhan Tuoruijing to strengthen its advanced molecular diagnostic platform's technology layout and clinical translation capabilities; concurrently, it co-founded Wuhan Baisheng Intelligent with Biostate AI from the US, introducing AI-driven RNA multi-omics diagnostic technology to focus on five specialized areas—autoimmune diseases, oral cancer, diabetes, lymphoma, and organ transplantation—aiming to build a globally leading intelligent molecular diagnostic platform - Completed an angel round investment in Wuhan Tuoruijing, strengthening the technology layout and clinical translation capabilities of its advanced molecular diagnostic platform[21](index=21&type=chunk) - Co-founded Wuhan Baisheng Intelligent with Biostate AI from the US, introducing AI-driven RNA multi-omics diagnostic technology, focusing on five specialized areas to build a globally leading intelligent molecular diagnostic platform[22](index=22&type=chunk) [Digitalization, Informatization, and AI](index=8&type=section&id=%E6%95%B8%E5%AD%97%E5%8C%96%E3%80%81%E4%BF%A1%E6%81%AF%E5%8C%96%E8%88%87%E4%BA%BA%E5%B7%A5%E6%99%BA%E8%83%BD%E5%8C%96) The Group actively promoted a tripartite transformation strategy of digitalization, informatization, and artificial intelligence, upgrading its smart order management platform to optimize logistics and enable full-process tracking, significantly reducing erroneous sample submission rates; laboratory digitalization progressed significantly through full-process digital management and LIMS system upgrades, notably reducing report turnaround times and enhancing operational efficiency - Upgraded the smart order management platform, optimized logistics processes, achieved full-process tracking from unboxing to pre-processing, significantly reducing erroneous sample submission rates[24](index=24&type=chunk) - Laboratory digitalization progressed significantly through full-process digital management and LIMS system upgrades, reducing report turnaround times and enhancing operational efficiency[24](index=24&type=chunk) [Future Outlook](index=8&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) Looking ahead to 2025, the Group will continue to deepen its core testing technologies to ensure stability, actively expand upstream and downstream industrial chains to create new business growth points, and plans to continuously deploy multi-omics data integration platforms, AI pathology analysis systems, and automated laboratory technologies, achieving a "introduce-digest-innovate" technology upgrade path through investment in international cutting-edge testing technologies and promoting localized validation and industrialization, addressing market competition with a dual-track IVD+LDT collaborative development - Continue to deepen core testing technologies, ensure stable fundamentals, and actively expand upstream and downstream industrial chains to create new business growth points[24](index=24&type=chunk) - Continuously deploy multi-omics data integration platforms, AI pathology analysis systems, and automated laboratory technologies to achieve a "introduce-digest-innovate" technology upgrade path[23](index=23&type=chunk) - With a dual-track IVD+LDT collaborative development, the company is confident in achieving a "balanced offense and defense" and leading innovative development in medical testing[24](index=24&type=chunk) [Detailed Financial Review](index=9&type=section&id=%E8%A9%B3%E7%B4%B0%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, the company recorded a pre-tax loss of RMB 30.680 million, compared to a profit of RMB 15.069 million in the prior period; revenue decreased by 3.5%, and cost of sales increased by 5.2%, leading to a 13.0% decline in gross profit, while administrative expenses, other expenses, and finance costs all saw significant increases, collectively resulting in a net loss of RMB 32.636 million for the period Table: Detailed Financial Review | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 456,919 | 473,335 | (3.5) | | Cost of Sales | (260,389) | (247,545) | 5.2 | | Gross Profit | 196,530 | 225,790 | (13.0) | | Other Income and Gains | 48,865 | 54,889 | (11.0) | | Selling and Marketing Expenses | (144,991) | (147,923) | (2.0) | | Administrative Expenses | (56,249) | (46,767) | 20.3 | | Research and Development Costs | (46,046) | (48,401) | (4.9) | | Other Expenses | (21,090) | (17,840) | 18.2 | | Finance Costs | (7,699) | (4,679) | 64.5 | | (Loss) / Profit Before Tax | (30,680) | 15,069 | (303.6) | | Income Tax Expense | (1,956) | (4,541) | (56.9) | | (Loss) / Profit for the Period | (32,636) | 10,528 | (410.0) | - Revenue decreased by **3.5%**, cost of sales increased by **5.2%**, and gross profit decreased by **13.0%**[26](index=26&type=chunk) - Administrative expenses increased by **20.3%**, other expenses by **18.2%**, and finance costs by **64.5%**[26](index=26&type=chunk) - Pre-tax profit turned from a profit of **RMB 15.069 million** to a loss of **RMB 30.680 million**, with a net loss of **RMB 32.636 million** for the period[26](index=26&type=chunk) [Consolidated Income Statement Analysis](index=9&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8%E5%88%86%E6%9E%90) During the reporting period, revenue decreased by 3.5% and cost of sales increased by 5.2%, resulting in a 13.0% decline in gross profit; administrative expenses, other expenses, and finance costs significantly increased, while R&D costs and selling and marketing expenses slightly decreased, collectively leading to a pre-tax loss of RMB 30.680 million, compared to a pre-tax profit in the prior period, and a net loss of RMB 32.636 million for the period [Revenue](index=10&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, total revenue was RMB 456.919 million, a 3.5% year-on-year decrease; all testing business lines, except oncology testing due to the merger with Benchmark Medical, experienced revenue decline due to external market challenges and hospital cost control pressures, while research services and CRO revenue grew approximately 50.6% year-on-year to RMB 32 million - Total revenue was **RMB 456.919 million**, a year-on-year decrease of **3.5%**[26](index=26&type=chunk) Table: Revenue by Operating Segment | Operating Segment | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Hematology Testing | 276,691 | 60.6 | 297,919 | 62.9 | | Neurology Testing | 47,074 | 10.3 | 49,154 | 10.4 | | Gynecology-related Testing | 20,942 | 4.6 | 25,003 | 5.3 | | Genetic and Rare Disease Testing | 20,664 | 4.5 | 23,635 | 5.0 | | Infectious Disease Testing | 17,946 | 3.9 | 23,659 | 5.0 | | Oncology Testing | 18,464 | 4.0 | 10,972 | 2.3 | | Routine Testing | 20,393 | 4.5 | 21,064 | 4.5 | | Research Services and CRO | 32,059 | 7.0 | 21,285 | 4.5 | - All testing business lines, except oncology testing due to increased revenue from the merger with Benchmark Medical, experienced revenue decline[31](index=31&type=chunk) - Research services and CRO revenue was approximately **RMB 32 million**, a year-on-year increase of approximately **50.6%**[32](index=32&type=chunk) [Cost of Sales](index=11&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, cost of sales increased by 5.2% to approximately RMB 260.4 million, primarily due to lower sales discounts, changes in product mix, and increased fixed operating costs from new laboratories - Cost of sales increased by **5.2%** to approximately **RMB 260.4 million**[34](index=34&type=chunk) Table: Cost of Sales Details | Cost of Sales Details | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Staff Costs | 73,454 | 28.2 | 73,583 | 29.7 | | Outsourcing Costs | 43,664 | 16.8 | 42,052 | 17.0 | | Raw Materials | 81,429 | 31.3 | 78,117 | 31.6 | | Others | 61,842 | 23.7 | 53,793 | 21.7 | | **Total** | **260,389** | **100.0** | **247,545** | **100.0** | - The increase in costs was primarily due to lower sales discounts, changes in product mix, and increased fixed operating costs from new laboratories[34](index=34&type=chunk) [Gross Profit and Segment Results](index=12&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E5%88%86%E9%83%A8%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, consolidated gross profit decreased by 13.0% to RMB 196.5 million, with the gross profit margin falling to 43.0%, primarily due to decreased revenue and increased fixed costs from new laboratories; most testing segments saw declining performance due to market conditions and hospital cost control pressures, with oncology testing incurring a loss of RMB 13.6 million due to the acquisition of Benchmark Medical, and CRO and research services segment loss expanding to RMB 6.0 million - Consolidated gross profit decreased by **13.0%** to **RMB 196.5 million**, with the gross profit margin falling by **4.7 percentage points** from 47.7% to **43.0%**[35](index=35&type=chunk) - The decrease in gross profit and gross profit margin was primarily due to a **RMB 16.4 million** decline in revenue and increased fixed operating costs from new laboratories[35](index=35&type=chunk) Table: Segment Results | Operating Segment | 2025 Segment Results (RMB thousands) | % of Segment Revenue | 2024 Segment Results (RMB thousands) | % of Segment Revenue | | :--- | :--- | :--- | :--- | :--- | | Hematology Testing | 61,755 | 22.3 | 67,898 | 22.8 | | Neurology Testing | 9,519 | 20.2 | 7,316 | 14.9 | | Gynecology-related Testing | 206 | 1.0 | 727 | 2.9 | | Genetic and Rare Disease Testing | 592 | 2.9 | 3,045 | 12.9 | | Infectious Disease Testing | 40 | 0.2 | 2,835 | 12.0 | | Oncology Testing | (13,638) | (73.9) | 1,702 | 15.5 | | Routine Testing | (515) | (2.5) | 156 | 0.7 | | Research Services and CRO | (6,000) | (18.7) | (3,413) | (16.0) | - Oncology testing segment results turned from a profit to a loss of **RMB 13.6 million**, primarily due to operating losses and intangible asset amortization from the acquisition of Benchmark Medical[37](index=37&type=chunk) - CRO and research services segment loss expanded to **RMB 6.0 million**, primarily due to increased costs from establishing overseas laboratories[37](index=37&type=chunk) [Other Income and Gains](index=13&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, other income and gains were approximately RMB 48.9 million, a year-on-year decrease of approximately 11.0%, primarily due to reduced interest income from lower bank deposit rates - Other income and gains were approximately **RMB 48.9 million**, a year-on-year decrease of approximately **11.0%**[38](index=38&type=chunk) - The decrease was primarily due to reduced interest income from lower bank deposit rates[38](index=38&type=chunk) [Selling and Marketing Expenses](index=13&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, selling and marketing expenses were approximately RMB 145.0 million, a year-on-year decrease of approximately 2.0%; selling and marketing expenses as a percentage of revenue increased by 0.5 percentage points from 31.2% in the prior period to 31.7% in the current period - Selling and marketing expenses were approximately **RMB 145.0 million**, a year-on-year decrease of approximately **2.0%**[39](index=39&type=chunk) - Selling and marketing expenses as a percentage of revenue increased by **0.5 percentage points** from 31.2% to **31.7%**[39](index=39&type=chunk) [Administrative Expenses](index=13&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, administrative expenses were approximately RMB 56 million, a year-on-year increase of approximately 20.3%, primarily due to expenses related to the acquisition of Benchmark Medical and personnel adjustments - Administrative expenses were approximately **RMB 56 million**, a year-on-year increase of approximately **20.3%**[40](index=40&type=chunk) - The increase was primarily due to expenses related to the acquisition of Benchmark Medical and personnel adjustments[40](index=40&type=chunk) [Research and Development Costs](index=13&type=section&id=%E7%A0%94%E7%99%BC%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, R&D costs were approximately RMB 46.0 million, representing 10.1% of revenue; the company maintained a high level of R&D investment to sustain competitiveness and advance new specialized and testing technology layouts - R&D costs were approximately **RMB 46.0 million**, representing **10.1%** of revenue[41](index=41&type=chunk) - The company maintained a high level of R&D investment to sustain competitiveness and advance new specialized and testing technology layouts[41](index=41&type=chunk) [Other Expenses](index=13&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, other expenses were approximately RMB 21.1 million, a year-on-year increase of approximately 18.2%, primarily due to changes in the fair value of funds - Other expenses were approximately **RMB 21.1 million**, a year-on-year increase of approximately **18.2%**[42](index=42&type=chunk) - The increase was primarily due to changes in the fair value of funds[42](index=42&type=chunk) [Finance Costs](index=13&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs were approximately RMB 7.7 million, primarily related to bank borrowings - Finance costs were approximately **RMB 7.7 million**, primarily related to bank borrowings[43](index=43&type=chunk) [Income Tax Expense](index=14&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense decreased by approximately 56.9% year-on-year to approximately RMB 2.0 million - Income tax expense decreased by approximately **56.9%** year-on-year to approximately **RMB 2.0 million**[44](index=44&type=chunk) [Loss for the Period](index=14&type=section&id=%E6%9C%9F%E5%85%A7%E8%99%A7%E6%90%8D) Given the aforementioned reasons, for the six months ended June 30, 2025, the company incurred a loss of approximately RMB 32.6 million, representing a decrease of approximately 410.0% in net profit margin compared to the prior period - Loss for the period was approximately **RMB 32.6 million**, representing a decrease of approximately **410.0%** in net profit margin compared to the prior period[45](index=45&type=chunk) [Liquidity and Capital Resources](index=14&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the company's cash and cash equivalents increased by 18.6% to RMB 700.9 million; net cash outflow from operating activities was RMB 33.77 million, net cash inflow from investing activities was RMB 302.5 million, and net cash inflow from financing activities was RMB 56.0 million; the company maintained ample cash reserves and managed liquidity through bank borrowings and proceeds from the global offering, with a gearing ratio of 15.3% - As of June 30, 2025, cash and cash equivalents increased by **18.6%** to **RMB 700.9 million**[49](index=49&type=chunk) - The company maintains ample cash reserves, with cash, cash equivalents, and time deposits totaling approximately **RMB 1.88 billion**[23](index=23&type=chunk) - The gearing ratio was **15.3%**[52](index=52&type=chunk) [Cash Flow Summary](index=14&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E6%A6%82%E8%A6%81) For the six months ended June 30, 2025, net cash used in operating activities was RMB 33.77 million, net cash generated from investing activities was RMB 302.5 million (primarily from matured bank time deposits), and net cash generated from financing activities was RMB 56.0 million (primarily from new bank loans); cash and cash equivalents at period-end increased to RMB 700.9 million Table: Cash Flow Summary | For the Six Months Ended June 30 | | :--- | | **2025 (RMB thousands)** | **2024 (RMB thousands)** | | Net cash flow used in operating activities | (33,769) | (70,249) | | Net cash flow from / (used in) investing activities | 302,487 | (969,483) | | Net cash flow from financing activities | 56,029 | 133,581 | | Net increase / (decrease) in cash and cash equivalents | 324,747 | (906,151) | | Cash and cash equivalents at end of period | 700,907 | 591,146 | - Net cash inflow from investing activities was primarily due to matured bank time deposits of **RMB 438.9 million**[49](index=49&type=chunk) - Net cash inflow from financing activities was primarily due to new bank loans of **RMB 190.9 million**[49](index=49&type=chunk) [Foreign Exchange Risk](index=15&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The company primarily operates in China, with most transactions settled in RMB, which is also its presentation and functional currency; it does not face significant foreign exchange risk, with primary exposure from USD against RMB and HKD, and manages risk by regularly reviewing net foreign exchange exposure, with hedging activities not exceeding twelve months - Most transactions are settled in RMB, which is also the presentation and functional currency[50](index=50&type=chunk) - The company does not face significant foreign exchange risk, with primary exposure from USD against RMB and HKD[50](index=50&type=chunk) - Risk is managed by regularly reviewing net foreign exchange exposure, with hedging activities not exceeding twelve months[50](index=50&type=chunk) [Indebtedness and Gearing Ratio](index=15&type=section&id=%E5%82%B5%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the company had utilized credit facilities of approximately RMB 449.0 million and had unutilized bank financing of approximately RMB 370 million; total borrowings were approximately RMB 436.9 million, comprising approximately RMB 139 million in fixed-rate borrowings and approximately RMB 297.9 million in floating-rate borrowings, with a gearing ratio of 15.3% - Utilized credit facilities were approximately **RMB 449.0 million**, with unutilized bank financing of approximately **RMB 370 million**[51](index=51&type=chunk) - Total borrowings were approximately **RMB 436.9 million**, comprising approximately **RMB 139 million** in fixed-rate borrowings and approximately **RMB 297.9 million** in floating-rate borrowings[51](index=51&type=chunk) - The gearing ratio was **15.3%**[52](index=52&type=chunk) [Capital Expenditure](index=16&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, total capital expenditure was RMB 25.142 million, a significant decrease from RMB 109.378 million in the prior period, primarily related to equipment purchases and laboratory renovations Table: Capital Expenditure | Capital Expenditure Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Purchase of property, plant and equipment | 24,519 | 95,216 | | Purchase of other intangible assets | 623 | 14,162 | | **Total** | **25,142** | **109,378** | - Total capital expenditure significantly decreased year-on-year, primarily related to equipment purchases and laboratory renovations[53](index=53&type=chunk)[54](index=54&type=chunk) [Contingent Liabilities](index=16&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the company had no significant contingent liabilities[55](index=55&type=chunk) [Significant Investments and Future Plans](index=16&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, the company held no significant investments; other than expansion plans disclosed in the prospectus, the company had no future plans regarding significant investments or capital assets - As of June 30, 2025, the company held no significant investments[56](index=56&type=chunk) - Other than expansion plans disclosed in the prospectus, the company had no future plans regarding significant investments or capital assets[56](index=56&type=chunk) [Significant Acquisitions and Disposals](index=16&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the company made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the company made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[57](index=57&type=chunk) [Pledge of Group Assets](index=16&type=section&id=%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, Kindstar Shanghai's buildings were pledged as collateral for RMB 69,000,000 in bank borrowings; Kindstar Wuhan WFOE entered into a RMB 132,000,000 bank borrowing agreement with CITIC Bank, pledging 100% equity of Guangzhou Kangcheng Weiye Biotechnology Co., Ltd. - Kindstar Shanghai's buildings were pledged as collateral for **RMB 69,000,000** in bank borrowings[58](index=58&type=chunk) - Kindstar Wuhan WFOE pledged **100%** equity of Guangzhou Kangcheng Weiye Biotechnology Co., Ltd. to secure **RMB 132,000,000** in bank borrowings[58](index=58&type=chunk) [Employees and Share Incentive Schemes](index=17&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%82%A1%E6%AC%8A%E6%BF%80%E5%8B%B5) As of June 30, 2025, the company had 3,162 employees, primarily located in Hubei, Sichuan, Beijing, and Shanghai, offering comprehensive training and competitive compensation; as of the announcement date, share options to subscribe for 3,346,192 shares under the pre-IPO share incentive scheme remained unexercised, while no shares or share options were granted under the post-IPO restricted share unit scheme and share option scheme during the reporting period - As of June 30, 2025, the company had **3,162** employees[61](index=61&type=chunk) - The company provides new employee training, on-the-job training, quarterly online and in-person training, and encourages participation in external seminars[61](index=61&type=chunk) - As of the announcement date, share options to subscribe for **3,346,192** shares under the pre-IPO share incentive scheme remained unexercised[62](index=62&type=chunk) - No restricted share units or share options were granted under the post-IPO restricted share unit scheme and share option scheme during the reporting period[62](index=62&type=chunk) [Employee Profile](index=17&type=section&id=%E5%83%B1%E5%93%A1%E6%A6%82%E6%B3%81) As of June 30, 2025, the company had 3,162 employees, primarily in Hubei, Sichuan, Beijing, and Shanghai; it continuously enhances employee technical knowledge and capabilities through regular, on-the-job, quarterly formal training, and external seminars, offering competitive compensation including salaries, discretionary bonuses, and benefit plans - As of June 30, 2025, there were **3,162** employees[61](index=61&type=chunk) - New employee training, on-the-job training, quarterly online and in-person training are provided, and participation in external seminars is encouraged[61](index=61&type=chunk) - Compensation is determined based on market conditions, individual performance, qualifications, and experience, offering competitive remuneration packages[61](index=61&type=chunk) [Share Incentive Schemes](index=17&type=section&id=%E8%82%A1%E7%A5%A8%E6%BF%80%E5%8B%B5%E8%A8%88%E5%8A%83) The company adopted a pre-IPO share incentive scheme, with share options to subscribe for 3,346,192 shares remaining unexercised as of the announcement date; additionally, a post-IPO restricted share unit scheme and share option scheme were adopted on June 22, 2021, but no restricted share units or share options were granted under these schemes as of June 30, 2025 - Under the pre-IPO share incentive scheme, share options to subscribe for **3,346,192** shares remained unexercised[62](index=62&type=chunk) - No restricted share units or share options were granted under the post-IPO restricted share unit scheme and share option scheme during the reporting period[62](index=62&type=chunk) [Significant Events After Reporting Period](index=17&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) No significant events occurred after June 30, 2025, and up to the date of this announcement that could materially affect the company's operations and financial performance - No significant events occurred from the end of the reporting period to the announcement date that materially affected operations and financial performance[63](index=63&type=chunk) [Use of Proceeds from Global Offering](index=17&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The net proceeds from the global offering, approximately HKD 2,053.6 million, have been and will continue to be utilized as intended in the prospectus; for the six months ended June 30, 2025, actual usage was HKD 156.7 million, with an unutilized balance of HKD 734.7 million, and the company currently has no intention to change the use of unutilized net proceeds, expecting full utilization by June 30, 2028 - Net proceeds from the global offering were approximately **HKD 2,053.6 million**[64](index=64&type=chunk) - For the six months ended June 30, 2025, actual usage was **HKD 156.7 million**, with an unutilized balance of **HKD 734.7 million**[65](index=65&type=chunk) - The company currently has no intention to change the use of unutilized net proceeds, expecting full utilization by June 30, 2028[66](index=66&type=chunk) Table: Use of Proceeds from Global Offering | Intended Use of Proceeds | Percentage of Intended Use (%) | Intended Use of Global Offering Proceeds (HKD millions) | Actual Usage for the Six Months Ended June 30, 2025 (HKD millions) | Unutilized Net Proceeds as of June 30, 2025 (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Sales and marketing of existing specialized testing service lines | 35 | 721.8 | 94.6 | 343.5 | | R&D for existing specialized testing service lines | 20.1 | 410.7 | 8.5 | 67.9 | | Development and commercialization of new specialized testing service lines | 15 | 308.0 | 44.6 | 106.9 | | Acquisitions of complementary and synergistic companies | 5 | 102.7 | 0 | 18.7 | | Strengthening testing capabilities | 10 | 205.4 | 9 | 0.1 | | Overseas expansion | 5 | 102.7 | 0 | 102.7 | | Working capital and other general corporate purposes | 10 | 205.4 | 0 | 94.9 | | **Total** | **100.0** | **2,053.6** | **156.7** | **734.7** | [Interim Condensed Consolidated Financial Statements](index=20&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=20&type=section&id=%E4%B8%AD%E6%9C%9F%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 recorded a post-tax loss of RMB 32.636 million, compared to a profit of RMB 10.528 million in the prior period; loss attributable to owners of the parent company was RMB 36.073 million, with basic loss per share of RMB 3.78 cents Table: Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 456,919 | 473,335 | | Gross Profit | 196,530 | 225,790 | | (Loss) / Profit Before Tax | (30,680) | 15,069 | | (Loss) / Profit for the Period | (32,636) | 10,528 | | (Loss) / Profit Attributable to Owners of the Parent | (36,073) | 11,895 | | Basic (Loss) / Earnings Per Share (RMB) | (0.0378) | 0.0125 | [Interim Condensed Consolidated Statement of Financial Position](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%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, the company's total non-current assets were RMB 1,688.917 million, total current assets were RMB 2,215.300 million, total current liabilities were RMB 838.067 million, total non-current liabilities were RMB 213.507 million, and net assets were RMB 2,852.673 million Table: Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Non-Current Assets | 1,688,917 | 1,528,339 | | Total Current Assets | 2,215,300 | 2,246,527 | | Total Current Liabilities | 838,067 | 854,445 | | Total Non-Current Liabilities | 213,507 | 96,063 | | Net Assets | 2,852,673 | 2,824,358 | | Total Equity | 2,852,673 | 2,824,358 | [Notes to the Financial Statements](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Company Information](index=24&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) The company was incorporated in the Cayman Islands as an exempted company on August 24, 2007, with shares listed on the Main Board of the Hong Kong Stock Exchange since July 16, 2021; it is an investment holding company, and its principal subsidiaries are engaged in providing clinical testing services in China - The company was incorporated in the Cayman Islands on August 24, 2007, and its shares were listed on the Hong Kong Stock Exchange on July 16, 2021[71](index=71&type=chunk) - The company is an investment holding company, and its principal subsidiaries are engaged in providing clinical testing services in China[71](index=71&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=24&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024; the accounting policies adopted are consistent with the 2024 annual consolidated financial statements, with no significant impact from new or revised IFRS effective from January 1, 2025 (e.g., amendments to IAS 21) on the Group's accounting policies - The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting"[72](index=72&type=chunk) - Accounting policies are consistent with the 2024 annual consolidated financial statements, and new or revised IFRS have no significant impact on the Group's accounting policies[73](index=73&type=chunk)[74](index=74&type=chunk) [Operating Segment Information](index=25&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group is divided into nine reportable operating segments by products and services, including hematology, genetic and rare diseases, infectious diseases, oncology, neurology, gynecology-related, routine testing, CRO and R&D projects, and others; management independently monitors each segment's performance for resource allocation and evaluation, and during the reporting period, most testing segments, except oncology testing, saw declining performance due to market conditions and hospital cost control pressures, with oncology testing incurring a loss due to the acquisition of Benchmark Medical - The Group is divided into nine reportable operating segments: hematology, genetic and rare diseases, infectious diseases, oncology, neurology, gynecology-related, routine testing, CRO and R&D projects, and others[76](index=76&type=chunk) - Management assesses segment performance based on reportable segment profit/loss, excluding other income and gains, administrative expenses, R&D costs, other expenses, and finance costs[75](index=75&type=chunk) - During the reporting period, most testing business segments, except oncology testing, experienced declining performance due to market conditions and hospital cost control pressures[37](index=37&type=chunk) - Oncology testing segment results turned from a profit to a loss of **RMB 13.6 million**, primarily due to operating losses and intangible asset amortization from the acquisition of Benchmark Medical[37](index=37&type=chunk) - CRO and research services segment loss expanded from **RMB 3.4 million** to **RMB 6.0 million**, primarily due to increased costs from establishing overseas laboratories[37](index=37&type=chunk) [Revenue Analysis](index=27&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) For the six months ended June 30, 2025, total company revenue was RMB 456.919 million, comprising RMB 424.860 million from clinical testing services and RMB 32.059 million from R&D project testing services and other income; performance obligations for clinical testing services are satisfied upon delivery of testing reports, while R&D project testing service revenue is recognized based on invoiced amounts for services rendered Table: Revenue by Service Type | Service Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Clinical testing services – at a point in time | 424,860 | 452,050 | | R&D project testing services and others – over time | 32,059 | 21,285 | | **Total Revenue from Contracts with Customers** | **456,919** | **473,335** | - Performance obligations for clinical testing services are satisfied upon delivery of testing reports, with payment generally due within **30** days from the invoice date[81](index=81&type=chunk) - R&D project testing services and other income are recognized based on the amounts the Group is entitled to invoice for services rendered[82](index=82&type=chunk) [Details of (Loss) / Profit Before Tax](index=28&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%EF%BC%8F%E5%88%A9%E6%BD%A4%E6%98%8E%E7%B4%B0) For the six months ended June 30, 2025, the company incurred a pre-tax loss of RMB 30.680 million, primarily influenced by cost of services, depreciation and amortization, R&D costs, employee benefit expenses, finance costs, and fair value losses on financial assets; specifically, depreciation of property, plant and equipment was RMB 30.009 million, amortization of other intangible assets was RMB 11.933 million, and fair value loss on financial assets at fair value through profit or loss was RMB 10.150 million Table: Details of (Loss) / Profit Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of services provided | 259,532 | 247,545 | | Depreciation of property, plant and equipment | 30,009 | 21,219 | | Amortization of other intangible assets | 11,933 | 2,808 | | Research and development costs | 46,046 | 48,401 | | Employee benefit expenses (salaries and other benefits) | 172,655 | 154,570 | | Bank interest income | (35,478) | (42,222) | | Finance costs | 7,699 | 4,679 | | Fair value changes of financial assets at fair value through profit or loss | 10,150 | 966 | | Impairment losses on financial assets under expected credit loss model | 6,262 | 11,310 | [Income Tax](index=28&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) The Group is subject to income tax on profits arising in each jurisdiction; there is no income tax in the Cayman Islands, and no provision for Hong Kong due to no assessable profits; PRC subsidiaries are subject to a 25% corporate income tax rate, but five high-tech enterprises and four companies under the Western Development policy enjoy a preferential rate of 15%; total income tax expense for the reporting period was RMB 1.956 million, a 56.9% decrease from the prior period - There is no income tax in the Cayman Islands, and no assessable profits in Hong Kong[85](index=85&type=chunk)[86](index=86&type=chunk) - PRC subsidiaries are subject to a corporate income tax rate of **25%**, but nine subsidiaries enjoy a preferential tax rate of **15%** (five are high-tech enterprises, four are located in Western China)[87](index=87&type=chunk) Table: Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax | 4,524 | 11,822 | | Under-provision in prior years | 5,049 | 2,224 | | Deferred income tax | (7,617) | (9,505) | | **Total tax expense for the period** | **1,956** | **4,541** | - Total tax expense for the period decreased by approximately **56.9%** year-on-year[44](index=44&type=chunk)[88](index=88&type=chunk) [Basic and Diluted (Loss) / Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=29&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%EF%BC%8F%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic loss per share attributable to ordinary equity holders of the parent company was RMB 3.78 cents, compared to earnings of RMB 1.25 cents in the prior period; diluted loss per share was also RMB 3.78 cents, with anti-dilutive share options and unvested restricted shares excluded from the calculation of both basic and diluted loss per share Table: Basic and Diluted (Loss) / Earnings Per Share | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic (Loss) / Earnings Per Share | (0.0378) | 0.0125 | | Diluted (Loss) / Earnings Per Share | (0.0378) | 0.0124 | - The weighted average number of ordinary shares outstanding for basic loss per share calculation for the period was **954,305,654** shares[89](index=89&type=chunk)[91](index=91&type=chunk) - Anti-dilutive share options and unvested restricted shares were not included in the calculation of basic and diluted loss per share[91](index=91&type=chunk) [Dividends](index=30&type=section&id=%E8%82%A1%E6%81%AF) The 2024 final dividend of HKD 0.0238 per share (totaling approximately HKD 24,601,000) was paid on August 27, 2025; the Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The 2024 final dividend of **HKD 0.0238** per share (approximately **HKD 24,601,000**) was paid on August 27, 2025[92](index=92&type=chunk) - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025[60](index=60&type=chunk)[92](index=92&type=chunk) [Property, Plant and Equipment](index=31&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, the net book value of property, plant and equipment was RMB 571.421 million; additions during the period amounted to RMB 26.411 million, and depreciation provision was RMB 30.009 million; certain buildings with a net book value of RMB 152.627 million were pledged as collateral for bank financing Table: Property, Plant and Equipment | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net book value | 571,421 | 575,064 | | Additions during the period | 26,411 | 206,911 | | Depreciation provision during the period | (30,009) | (45,163) | - As of June 30, 2025, certain buildings with a net book value of **RMB 152,627,000** were pledged as collateral for the Group's general bank financing[94](index=94&type=chunk) [Other Intangible Assets](index=33&type=section&id=%E5%85%B6%E4%BB%96%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) As of June 30, 2025, the net book value of other intangible assets was RMB 245.615 million, a significant increase from RMB 37.991 million on January 1, 2025, primarily due to licenses of RMB 207.379 million acquired through the acquisition of a subsidiary; amortization of RMB 11.933 million was recognized during the period Table: Other Intangible Assets | Item | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | | :--- | :--- | :--- | | Net book value | 245,615 | 37,991 | | Acquisition of subsidiaries | 207,379 | – | | Amortization provided during the period | (11,933) | – | - The significant increase in intangible assets was primarily due to licenses of **RMB 207.379 million** acquired through the acquisition of a subsidiary[95](index=95&type=chunk) [Trade and Bills Receivables](index=34&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills receivables amounted to RMB 637.074 million, with a net amount of RMB 501.871 million after deducting an expected credit loss provision of RMB 135.203 million; the credit period generally ranges from three to nine months, and the expected credit loss provision increased from the beginning of the year, primarily due to net impairment losses of RMB 6.262 million and RMB 1.034 million from the acquisition of a subsidiary Table: Trade and Bills Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total trade and bills receivables | 637,074 | 632,538 | | Provision for expected credit losses | (135,203) | (128,327) | | **Total (Net)** | **501,871** | **504,211** | - The credit period generally ranges from **three to nine months**, and the company strictly controls outstanding receivables to mitigate credit risk[96](index=96&type=chunk) - The provision for expected credit losses increased from the beginning of the year, primarily due to net impairment losses of **RMB 6.262 million** and **RMB 1.034 million** from the acquisition of a subsidiary[96](index=96&type=chunk) Table: Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 216,012 | 195,811 | | 1 to 2 years | 70,675 | 74,866 | | 2 to 3 years | 131,146 | 191,286 | | 3 to 4 years | 62,618 | 18,504 | | 4 to 5 years | 13,083 | 12,426 | | Over 5 years | 8,337 | 11,318 | | **Total** | **501,871** | **504,211** | [Prepayments, Deposits and Other Receivables](index=36&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total prepayments, deposits, and other receivables amounted to RMB 115.596 million, with current portion at RMB 83.515 million and non-current portion at RMB 32.081 million (primarily representing VAT balances not expected to be recovered within the next 12 months); these balances are unsecured, have no history of default, and have negligible expected credit loss rates Table: Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deposits and other receivables (current) | 68,777 | 56,649 | | Prepayments (current) | 12,052 | 11,694 | | Recoverable VAT (non-current) | 32,081 | 24,977 | | **Total** | **115,596** | **98,957** | - The non-current portion primarily represents VAT balances not expected to be recovered within the next **12** months[99](index=99&type=chunk) - The balances are unsecured, have no history of default, and have negligible expected credit loss rates[100](index=100&type=chunk) [Time Deposits](index=37&type=section&id=%E5%AE%9A%E6%9C%9F%E5%AD%98%E6%AC%BE) As of June 30, 2025, the company's total time deposits amounted to RMB 1,174.715 million; of this, non-current deposits over one year were RMB 330.000 million, bearing fixed annual interest rates of 2.45% to 2.85% and maturing between April and May 2027, while current deposits between three months and one year were RMB 844.715 million, bearing fixed annual interest rates of 4.19% to 4.64% Table: Time Deposits | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Time deposits – current (over 3 months) | 844,715 | 1,217,543 | | Time deposits – non-current (over 1 year) | 330,000 | 410,000 | | **Total** | **1,174,715** | **1,627,543** | - Non-current deposits over one year amounted to **RMB 330.000 million**, bearing fixed annual interest rates of **2.45% to 2.85%**, maturing between April and May 2027[101](index=101&type=chunk) - Current deposits between three months and one year amounted to **RMB 844.715 million**, bearing fixed annual interest rates of **4.19% to 4.64%**[101](index=101&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=37&type=section&id=%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, financial assets at fair value through profit or loss (non-current) amounted to RMB 318.470 million, primarily investments in limited partnerships of unlisted funds, aimed at gaining broader exposure to the clinical testing industry Table: Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Investments in unlisted funds | 318,470 | 324,441 | | **Financial assets at fair value through profit or loss – non-current** | **318,470** | **324,441** | - Investments include subscriptions to limited partnerships of unlisted funds, enabling the Group to gain further exposure to a broader range of clinical testing industry participants[102](index=102&type=chunk) [Trade and Bills Payables](index=37&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills payables amounted to RMB 160.656 million, with RMB 137.412 million due within one year; trade payables are non-interest bearing and generally settled within 90 days Table: Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 137,412 | 147,366 | | 1 to 2 years | 7,711 | 21,067 | | Over 2 years | 15,533 | 9,585 | | **Total** | **160,656** | **178,018** | - Trade payables are non-interest bearing and generally settled within **90** days[103](index=103&type=chunk) [Other Payables and Accruals](index=38&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) As of June 30, 2025, total other payables and accruals amounted to RMB 337.717 million, primarily comprising accruals of RMB 126.368 million, salaries payable of RMB 131.930 million, and other payables of RMB 77.419 million; these amounts are unsecured, non-interest bearing, and repayable on demand Table: Other Payables and Accruals | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Accruals | 126,368 | 130,343 | | Salaries payable | 131,930 | 129,841 | | Other payables | 77,419 | 65,439 | | Consideration payable for equity acquisition | 2,000 | 4,900 | | **Total** | **337,717** | **330,523** | - Other payables are unsecured, non-interest bearing, and repayable on demand[104](index=104&type=chunk) [Interest-Bearing Bank Borrowings](index=38&type=section&id=%E8%A8%88%E6%81%AF%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2025, total interest-bearing bank borrowings amounted to RMB 437.215 million, comprising current borrowings of RMB 245.915 million and non-current borrowings of RMB 191.300 million; borrowings include credit and secured loans, with interest rates ranging from benchmark rate minus 20-50 basis points to 2.60%-3.50%, and some borrowings are secured by Kindstar Shanghai's buildings and 100% equity of Guangzhou Kangcheng Weiye Biotechnology Co., Ltd. Table: Interest-Bearing Bank Borrowings | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current bank borrowings | 245,915 | 286,566 | | Non-current bank borrowings | 191,300 | 68,500 | | **Total** | **437,215** | **355,066** | - Kindstar Shanghai's buildings were pledged as collateral for **RMB 69,000,000** in bank borrowings[106](index=106&type=chunk) - Kindstar Wuhan WFOE pledged **100%** equity of Guangzhou Kangcheng Weiye Biotechnology Co., Ltd. to secure **RMB 132,000,000** in bank borrowings[106](index=106&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 之全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何 責 任。 LUYE PHARMA GROUP LTD. | 截 | 至6月30日止六個月 | 2025年 | 2024年 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | （未 | 經 | 審 | 核） | （未 | 經 | 審 | 核） | 人民幣千元 | 附 | 人民幣千元 | 註 | | 收 | 入 | 3,181,110 | 3,074,582 | 4 | 銷售成本 | (1,023,501) | (996,032) | | | | | | 毛 | 利 | 2,157,609 | 2,078,550 | | | | | | | | | | 197,797 | 202,931 | 其他收入及收益 | 銷售及分銷開 ...

Company Overview - Baiying Holdings Group Limited announced its unaudited interim results for the six months ending June 30, 2025[3]. - The company is registered in the Cayman Islands and listed on GEM with stock code 8525[12]. - The company has a subsidiary, Fujian Baiying Paper Industry Co., Ltd., established on January 13, 2021[12]. - The board of directors confirms that the information in the announcement is accurate and complete after reasonable inquiries[7]. - The board of directors includes both executive and independent non-executive members, ensuring governance and oversight[6]. Trading Suspension - The company's shares have been suspended from trading since 9:00 AM on June 9, 2025, until compliance with GEM Listing Rules is achieved[4]. - The company will issue further announcements regarding the resumption of trading as necessary[4]. - The report complies with the GEM Listing Rules regarding interim results announcements[3]. - The announcement will be available on the Hong Kong Stock Exchange website and the company's website for at least 7 days[8]. Financial Performance - Revenue increased from RMB 9.1 million for the six months ended June 30, 2024, to RMB 16.8 million for the six months ended June 30, 2025, representing an increase of 84.6%[19]. - The company recorded a profit of approximately RMB 4.8 million for the six months ended June 30, 2025, compared to a loss of approximately RMB 9.7 million for the same period in the previous year[19]. - The company's revenue increased from RMB 9.1 million for the six months ended June 30, 2024, to RMB 16.8 million for the six months ended June 30, 2025, primarily due to an increase in financing lease service income by RMB 4.6 million and financial information service income by RMB 4.3 million[41]. - The company reported a profit attributable to equity shareholders of RMB 17,155,135 for the six months ended June 30, 2025, compared to RMB 510,384 in the same period of 2024, representing a significant increase[108]. - The total comprehensive income for the period was RMB 4,754,410, recovering from a loss of RMB 9,722,966 in the previous year[107]. Revenue Breakdown - Revenue from financing services amounted to RMB 11.7 million, contributing 69.7% of total revenue for the six months ended June 30, 2025[19]. - The packaging and paper products trading business generated revenue of RMB 5.1 million, with a profit of RMB 0.01 million for the same period[19]. - Financial information services generated revenue of RMB 4.3 million, accounting for 25.8% of total revenue for the six months ended June 30, 2025[28]. - Revenue from packaging and paper products sales was RMB 5.1 million, representing 30% of total revenue for the six months ended June 30, 2025[30]. Expenses and Liabilities - Interest expenses increased from RMB 0.2 million for the six months ended June 30, 2024, to RMB 0.9 million for the same period in 2025, attributed to an increase in average loan balances[43]. - Administrative expenses rose from RMB 2.532 million for the six months ended June 30, 2024, to RMB 2.875 million for the same period in 2025, primarily due to an increase in employee costs by RMB 0.5 million[44]. - The company's asset-liability ratio improved from 0.58 times as of December 31, 2024, to 0.22 times as of June 30, 2025, indicating a reduction in financial leverage[43]. - The total current liabilities decreased from RMB 119.8 million as of December 31, 2024, to RMB 71.3 million as of June 30, 2025, contributing to an increase in net assets from RMB 221.5 million to RMB 261.3 million during the same period[57]. Cash Flow and Assets - Cash and cash equivalents increased from RMB 19.73 million as of December 31, 2024, to RMB 25.51 million as of June 30, 2025, due to proceeds from sales[61]. - The company's total current assets increased from RMB 135.7 million as of December 31, 2024, to RMB 144.6 million as of June 30, 2025, mainly due to an increase in loans and receivables[56]. - The net cash used in operating activities for the six months ended June 30, 2025, was RMB 77.2 million, primarily due to an operating loss before changes in working capital of RMB 20.0 million[52]. - The net cash generated from investing activities for the six months ended June 30, 2025, was RMB 49.8 million, mainly due to proceeds from the sale and redemption of investments amounting to RMB 20.3 million[53]. - The net cash generated from financing activities for the six months ended June 30, 2025, was RMB 33.2 million, which included borrowings of RMB 53.8 million offset by repayments of RMB 20.0 million[54]. Business Operations - The company completed the sale of its entire equity interest in Qiaoxin to Qingxiangyuan on June 13, 2025, resulting in no further consolidation of Qiaoxin's financial performance[18]. - The company continues to focus on developing its financing leasing business while actively seeking opportunities to expand into other business areas[17]. - The company aims to enhance its financial information services alongside its core financing leasing operations[17]. - The company completed the strategic sale of its vinegar business on June 13, 2025, for a cash consideration of RMB 13.45 million, allowing for a concentration of resources on its core financial leasing business[73]. Compliance and Governance - The company adhered to all major regulatory capital requirements and borrowing restrictions applicable to foreign investment financing leasing companies for the six months ended June 30, 2025[35]. - The board has adopted corporate governance elements to ensure high levels of governance, fully complying with the GEM Listing Rules during the reporting period[85]. - The company has confirmed compliance with the non-competition commitments made on June 20, 2018, by its directors and related parties[84]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with the GEM Listing Rules throughout the reporting period[92]. Shareholder Information - As of June 30, 2025, major shareholders included Mr. Zhou Yongwei with a 45.98% stake and Septwolves Holdings with a 44.06% stake[96]. - The interests of directors and senior management in the company's shares include 37,968,750 shares (14.06%) held by Mr. Ke Jin Tan and 12,430,934 shares (4.60%) held by Mr. Huang Da Ke[93]. - The board of directors did not propose any interim dividend for the six months ended June 30, 2025[82]. Employee and Management - The company has 24 full-time employees, all based in China, and has implemented training programs to enhance employee skills and knowledge[76]. - The remuneration for key management personnel for the six months ended June 30, 2025, was RMB 391,871, a decrease from RMB 656,470 in the same period of 2024[189]. Future Outlook - The company aims to expand its financing leasing business in green and technology sectors, focusing on regional infrastructure and new energy machinery[78]. - The company has no plans for significant investments or capital assets in the near future[75].

[Definitions](index=4&type=section&id=Definitions) This section defines key terms and vocabulary used in the report, covering company entities, geographical locations, business activities, and related parties for clarity - "The Company" is defined as Baiying Holdings Group Co., Ltd., incorporated in the Cayman Islands on **June 5, 2017**, with shares listed on GEM (stock code: **8525**)[6](index=6&type=chunk) - "Disposal" refers to Xiamen Baiying's sale of all shares in Qiaoxin to Qingxiangyuan, completed on **June 13, 2025**[6](index=6&type=chunk)[12](index=12&type=chunk) - "Reporting Period" refers to the six-month period ended **June 30, 2025**[7](index=7&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) This section lists the company's basic information, including board members, committee compositions, joint company secretaries, registered office, and stock code - Board members include executive directors Mr. Zhou Shiyuan (Chairman), Mr. Huang Dake, Ms. Lin Zhenyan, non-executive director Mr. Ke Jinding, and independent non-executive directors Mr. Li Yao, Mr. Tu Liandong, Mr. Xie Mianbi[8](index=8&type=chunk) - Changes in the audit, remuneration, and nomination committees occurred on **March 5, 2025**[8](index=8&type=chunk) - The company's stock code is **8525**, and its website is www.byleasing.com[9](index=9&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This section details the Group's business operations, financial performance, liquidity, capital resources, significant transactions, and future outlook, highlighting significant revenue growth and strategic divestment [Business Overview](index=8&type=section&id=Business%20Overview) The Group, a Fujian-based finance leasing company, provides equipment financing and financial information services, achieving **RMB 16.8 million** in revenue and **RMB 4.8 million** in profit, driven by core financial services and the strategic disposal of its vinegar business - The Group's main business is providing equipment financing solutions and financial information services in China, primarily to small and medium-sized enterprises, individual entrepreneurs, and reputable large enterprises[11](index=11&type=chunk) - A new subsidiary, Xiamen Baishun Information Technology Co., Ltd., was established on **February 18, 2025**, primarily providing SaaS services to small and medium-sized financial consulting service institutions in China[11](index=11&type=chunk) - The disposal of all shares in Qiaoxin was completed on **June 13, 2025**, ceasing its consolidation into the Group's financial results[12](index=12&type=chunk) Key Financial Performance for the Six Months Ended June 30, 2025 | Indicator | For the six months ended June 30, 2025 (RMB million) | For the six months ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Revenue | 16.8 | 9.1 | | Profit/(Loss) | 4.8 | (9.7) | | Finance service revenue | 11.7 | - | | Finance service profit | 17.3 | - | | Packaging and paper products trading revenue | 5.1 | - | | Packaging and paper products trading profit | 0.01 | - | [Finance Services](index=8&type=section&id=Finance%20Services) The Group offers direct finance leasing and sale-and-leaseback services, with finance leasing revenue reaching **RMB 7.4 million** (44% of total), and improved credit quality for receivables due to reduced overdue and impaired amounts [Finance Lease Services](index=8&type=section&id=Finance%20Lease%20Services) Finance lease services, including direct finance leasing and sale-and-leaseback, generated **RMB 7.4 million** in revenue, representing **44%** of total revenue, with net finance lease receivables significantly decreasing to **RMB 4.4 million** due to the disposal of overdue receivables - For the six months ended **June 30, 2025**, revenue from finance lease services was **RMB 7.4 million**, accounting for **44%** of total revenue[14](index=14&type=chunk) Average Monthly Balance and Annual Interest Rate Range for Interest-Bearing Receivables from Finance Lease Services | Indicator | For the six months ended June 30, 2025 | For the year ended December 31, 2024 | | :--- | :--- | :--- | | **Average monthly balance of interest-bearing receivables from finance lease services (RMB thousand)** | | | | －Direct finance lease | 929 | 101 | | －Sale-and-leaseback | 204,277 | 92,468 | | **Annual interest rate range** | | | | －Direct finance lease | 7.2% to 12.5% | 10.5% to 14.4% | | －Sale-and-leaseback | 6.5% to 15.6% | 6.5% to 15.6% | - Net finance lease receivables classified as overdue and credit-impaired significantly decreased from **RMB 41.1 million** as of **December 31, 2024**, to **RMB 4.4 million** as of **June 30, 2025**, mainly due to the disposal of overdue finance lease receivables[15](index=15&type=chunk) - Receivables from sale-and-leaseback transactions classified as overdue and credit-impaired decreased from **RMB 8.1 million** as of **December 31, 2024**, to **RMB 4.8 million** as of **June 30, 2025**, primarily due to the recovery of approximately **RMB 3.3 million** in receivables overdue for more than **90 days**[16](index=16&type=chunk) [Factoring Services](index=11&type=section&id=Factoring%20Services) Factoring services generated no revenue for the six months ended **June 30, 2025**, with the average monthly balance of factoring receivables significantly decreasing to **RMB 2.0 million** and a zero carrying amount due to full impairment provision - For the six months ended **June 30, 2025**, there was no revenue from factoring services[18](index=18&type=chunk) Average Monthly Balance and Interest Rate Range for Factoring Services | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the year ended December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Average monthly balance of factoring receivables | 1,983 | 19,099 | | Interest rate range | 8.0% | 8.0% | - As of **June 30, 2025**, the impairment loss provision for factoring receivables was **RMB 1,983 thousand**, resulting in a carrying amount of zero[20](index=20&type=chunk) [Consulting Services](index=12&type=section&id=Consulting%20Services) For the six months ended **June 30, 2025**, the Group recorded no revenue from consulting services - For the six months ended **June 30, 2025**, we recorded no revenue from consulting services[20](index=20&type=chunk) [Financial Information Services](index=12&type=section&id=Financial%20Information%20Services) Since **February 2025**, the Group has provided SaaS-based financial information services to Chinese SMEs, contributing **RMB 4.3 million** in revenue, or **25.8%** of total revenue, during the period - Since **February 2025**, the Group has provided financial information services to small and medium-sized financial consulting service institutions in China, centered on SaaS software and supplemented by consulting support[21](index=21&type=chunk) - For the six months ended **June 30, 2025**, financial information services revenue was **RMB 4.3 million**, accounting for **25.8%** of total revenue[22](index=22&type=chunk) [Packaging and Paper Products Trading](index=12&type=section&id=Packaging%20and%20Paper%20Products%20Trading) Since **January 2021**, the Group's packaging and paper products trading business generated **RMB 5.1 million** in revenue, with a gross profit of **RMB 0.1 million** and a gross profit margin of approximately **2.2%** for the six months ended **June 30, 2025** - Since **January 2021**, the Group has conducted packaging and paper products trading business through Baiying Paper, primarily selling packaging paper[23](index=23&type=chunk) Financial Performance of Packaging and Paper Products Trading Business | Indicator | For the six months ended June 30, 2025 (RMB million) | | :--- | :--- | | Sales revenue | 5.1 | | Cost of sales | 5.0 | | Gross profit | 0.1 | | Gross profit margin | 2.2% | [Compliance with Major Regulatory Requirements](index=13&type=section&id=Compliance%20with%20Major%20Regulatory%20Requirements) The Group fully complied with all major regulatory requirements for foreign-invested finance leasing companies during the reporting period, including restrictions on government financing platforms, capital requirements, and financial ratios - For the six months ended **June 30, 2025**, the Group complied with the regulation that foreign-invested finance leasing companies shall not directly or indirectly finance government financing platforms that undertake public welfare responsibilities[27](index=27&type=chunk) - For the six months ended **June 30, 2025**, the Group complied with the regulation that the registered capital of foreign-invested finance leasing companies shall not be less than **USD 10 million** and the foreign investment ratio shall not be less than **25%**[27](index=27&type=chunk) - For the six months ended **June 30, 2025**, the Group complied with a series of financial ratio restrictions, such as risk assets of finance leasing companies not exceeding **eight times** their total net assets[31](index=31&type=chunk)[32](index=32&type=chunk) [Financial Overview](index=15&type=section&id=Financial%20Overview) The Group achieved a turnaround to profit, with revenue increasing to **RMB 16.8 million** and a profit of **RMB 4.8 million**, driven by continuing operations despite losses from discontinued businesses, while administrative and interest expenses rose and impairment losses were recognized [Discontinued Operations](index=15&type=section&id=Discontinued%20Operations) The Group completed the disposal of all shares in Qiaoxin on **June 13, 2025**, ceasing its manufacturing and sales of vinegar and other condiments business, which is now classified as a discontinued operation - The disposal of all shares in Qiaoxin was completed on **June 13, 2025**, and the Group no longer engages in the manufacturing and selling of vinegar and other condiments in China ("discontinued operations")[33](index=33&type=chunk) [Operating Results of Continuing Operations](index=15&type=section&id=Operating%20Results%20of%20Continuing%20Operations) Revenue from continuing operations increased to **RMB 16.8 million** in 2025, primarily from finance lease and financial information services, resulting in a **RMB 4.8 million** profit for the period, reversing the prior year's loss Revenue from Continuing Operations by Business Type | Revenue Type | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income from finance lease services | 7,353 | 2,788 | | Financial information services revenue | 4,330 | – | | Packaging paper sales revenue | 5,073 | 6,293 | | **Total** | **16,756** | **9,081** | - Revenue increase was mainly due to an increase of **RMB 4.6 million** in finance lease services revenue and an increase of **RMB 4.3 million** in financial information services revenue[35](index=35&type=chunk) - Other income, other gains and losses changed from a net loss of **RMB 0.1 million** in the same period of 2024 to a gain of **RMB 2.2 million** in 2025, mainly due to a gain of **RMB 4.5 million** from the disposal of a finance lease receivable[36](index=36&type=chunk) - Interest expense increased from **RMB 0.2 million** in the same period of 2024 to **RMB 0.9 million** in 2025, mainly due to an increase in the average monthly loan balance[37](index=37&type=chunk) - Administrative expenses increased from **RMB 2.5 million** in the same period of 2024 to **RMB 2.9 million** in 2025, mainly due to an increase of **RMB 0.5 million** in staff costs[38](index=38&type=chunk) - Net impairment losses recognized or reversed changed from a reversal of **RMB 1.5 million** in the same period of 2024 to a recognition of **RMB 0.9 million** in 2025, mainly due to an increase in outstanding finance lease receivables[39](index=39&type=chunk) - Profit for the period was **RMB 4.8 million**, compared to a loss of **RMB 9.7 million** in the same period of 2024, mainly due to an increase of **RMB 17.1 million** in revenue from continuing operations, partially offset by a loss of **RMB 12.3 million** from discontinued operations[43](index=43&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The Group's cash and cash equivalents increased to **RMB 25.5 million**, with improved net current assets and a reduced debt-to-asset ratio, while finance lease receivables and borrowings decreased, and loans and receivables increased [Cash Flows](index=18&type=section&id=Cash%20Flows) For the six months ended **June 30, 2025**, net cash used in operating activities was **RMB 77.2 million**, net cash from investing activities was **RMB 49.8 million**, and net cash from financing activities was **RMB 33.2 million**, resulting in an ending cash balance of **RMB 25.5 million** Summary of Selected Cash Flow Statement Items | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and cash equivalents at beginning of period | 19,730 | 13,649 | | Net cash flow used in operating activities | (77,215) | (22,457) | | Net cash flow from investing activities | 49,825 | 10,383 | | Net cash flow from financing activities | 33,188 | 8,409 | | Net increase/(decrease) in cash and cash equivalents | 5,798 | (3,665) | | Cash and cash equivalents at end of period | 25,511 | 9,965 | - Net cash used in operating activities was **RMB 77.2 million**, mainly due to an operating loss of **RMB 20.0 million** before working capital changes and an increase in trade and other receivables, loans and receivables[46](index=46&type=chunk) - Net cash from investing activities was **RMB 49.8 million**, mainly due to proceeds of **RMB 20.3 million** from disposal and redemption of investments, and approximately **RMB 13.5 million** in consideration received from the disposal of an associate[47](index=47&type=chunk) - Net cash flow from financing activities was **RMB 33.2 million**, including proceeds of **RMB 53.8 million** from borrowings, partially offset by repayment of borrowings of **RMB 20.0 million**[48](index=48&type=chunk) [Selected Consolidated Statement of Financial Position Items](index=19&type=section&id=Selected%20Consolidated%20Statement%20of%20Financial%20Position%20Items) As of **June 30, 2025**, total current assets increased to **RMB 144.6 million**, total current liabilities decreased to **RMB 71.3 million**, and net assets rose to **RMB 261.3 million**, reflecting a reduction in finance lease receivables and borrowings, alongside an increase in loans and receivables - Total current assets increased from **RMB 135.7 million** as of **December 31, 2024**, to **RMB 144.6 million** as of **June 30, 2025**, mainly due to an increase in loans and receivables[50](index=50&type=chunk) - Total current liabilities decreased from **RMB 119.8 million** as of **December 31, 2024**, to **RMB 71.3 million** as of **June 30, 2025**[51](index=51&type=chunk) - Net assets increased from **RMB 221.5 million** as of **December 31, 2024**, to **RMB 261.3 million** as of **June 30, 2025**, mainly due to an increase in profit for the period[51](index=51&type=chunk) - The carrying amount of finance lease receivables decreased from **RMB 15.4 million** as of **December 31, 2024**, to **RMB 1.4 million** as of **June 30, 2025**[52](index=52&type=chunk) - Loans and receivables increased from **RMB 173.1 million** as of **December 31, 2024**, to **RMB 250.4 million** as of **June 30, 2025**[53](index=53&type=chunk) - As of **June 30, 2025**, the Group had no inventories due to the disposal[54](index=54&type=chunk) - Cash and cash equivalents increased from **RMB 19.7 million** as of **December 31, 2024**, to **RMB 25.5 million** as of **June 30, 2025**, due to the disposal[55](index=55&type=chunk) - Trade and other liabilities decreased from **RMB 21.5 million** as of **December 31, 2024**, to **RMB 17.8 million** as of **June 30, 2025**, mainly due to decreases in accrued staff costs, payables for property, plant and equipment, accrued liabilities, and trade payables[58](index=58&type=chunk) - Total borrowings decreased from **RMB 128.3 million** as of **December 31, 2024**, to **RMB 56.9 million** as of **June 30, 2025**[60](index=60&type=chunk) [Significant Investments, Acquisitions and Disposals](index=23&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) The Group completed the disposal of all shares in Qiaoxin on **June 13, 2025**, for **RMB 13,450,000**, after which Qiaoxin is no longer consolidated; no other significant transactions occurred during the reporting period - The disposal of all shares in Qiaoxin was completed on **June 13, 2025**, for a cash consideration of **RMB 13,450,000**[67](index=67&type=chunk) - Other than the disposal of Qiaoxin, there were no significant investments, acquisitions, or disposals for the six months ended **June 30, 2025**[67](index=67&type=chunk) [Future Plans for Material Investments and Expected Sources of Funding](index=23&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Expected%20Sources%20of%20Funding) The Group currently has no future plans for material investments or external financing beyond commercial bank borrowings, nor specific plans for capital assets - Other than bank borrowings obtained from commercial banks, the Group has no future plans for investments or external financing[68](index=68&type=chunk) - As of **June 30, 2025**, the Group had no specific future plans for material investments or capital assets[69](index=69&type=chunk) [Employment and Remuneration](index=23&type=section&id=Employment%20and%20Remuneration) As of the reporting date, the Group employs **24** full-time staff in China, offering competitive remuneration, comprehensive social insurance, and investing in continuous education and training to enhance skills and cohesion - As of the reporting date, the Group had **24** full-time employees, all working in China[70](index=70&type=chunk) - The Group contributes to social insurance funds (including retirement plans, medical insurance, etc.) for employees and complies with all applicable Chinese laws and regulations[70](index=70&type=chunk) - The Group invests in continuous education and training programs covering finance, risk control, collection, industry research, management skills, etc., and organizes regular business and book sharing sessions to enhance employee skills and knowledge[70](index=70&type=chunk) [Pledge of the Group's Assets](index=24&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of **June 30, 2025**, the Group had no pledged assets - As of **June 30, 2025**, we had no pledged assets[71](index=71&type=chunk) [Outlook](index=24&type=section&id=Outlook) The Group is expanding finance leasing in green and technology sectors, achieving significant growth, and will focus resources on its core financial business after divesting the vinegar operation, aiming to provide comprehensive financial services with intelligent risk control for sustainable development - The Group actively responds to national strategic guidance, focusing on green and technology sectors, expanding finance leasing businesses in regional infrastructure construction and new energy engineering machinery, driving significant business growth[72](index=72&type=chunk) - During the reporting period, the Group successfully completed the strategic disposal of its vinegar business, which will further concentrate funds and resource advantages to deepen the specialized development of its core financial business[72](index=72&type=chunk) - The Group will continue to optimize business processes, strengthen pre-investment due diligence, strictly adhere to risk control standards, and deepen strategic collaboration with industry chain partners such as equipment manufacturers and technology platforms to provide comprehensive financial service solutions[72](index=72&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section covers corporate governance, securities transactions, dividend policy, competing businesses, share option schemes, directors' and major shareholders' interests, and the continued suspension of trading, confirming compliance with relevant codes and disclosures [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee reviewed and discussed the company's accounting principles, internal controls, and financial reporting with management, and found no disagreements on the accounting treatments adopted in this unaudited interim report - The Audit Committee has reviewed and discussed the accounting principles and practices, internal controls, and financial reporting matters adopted by the Company with management[74](index=74&type=chunk) - The Audit Committee has reviewed this unaudited interim report and had no disagreements on the accounting treatments adopted by the Company[74](index=74&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&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 - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[75](index=75&type=chunk) [Interim Dividend](index=25&type=section&id=Interim%20Dividend) The Board does not propose or recommend the payment of any dividend for the six months ended **June 30, 2025** - The Board does not propose or recommend the payment of any dividend for the six months ended **June 30, 2025**[76](index=76&type=chunk) [Competing Business](index=25&type=section&id=Competing%20Business) During the reporting period, none of the Directors or their respective close associates engaged in any business directly or indirectly competing with the Company's business - During the reporting period, none of the Directors or their respective close associates engaged in any business directly or indirectly competing or likely to compete with the Company's business[77](index=77&type=chunk) [Compliance with Non-Competition Undertakings](index=25&type=section&id=Compliance%20with%20Non-Competition%20Undertakings) Controlling shareholders and independent non-executive directors confirmed full compliance with the non-competition undertakings made to the Company on **June 20, 2018**, throughout the reporting period - Controlling shareholders Septwolves Holdings, Mr. Zhou Yongwei, Mr. Zhou Shaoxiong, and Mr. Zhou Shaoming have all confirmed to the Company that they have complied with their non-competition undertakings made to the Company on **June 20, 2018**, during the reporting period[78](index=78&type=chunk) - The independent non-executive directors have reviewed the compliance and enforcement of the non-competition undertakings and confirmed that all undertakings have been complied with[78](index=78&type=chunk) [Compliance with Corporate Governance Code](index=25&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Group has adopted and fully complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules throughout the reporting period - The Group has adopted and fully complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules during the reporting period[79](index=79&type=chunk) [Continuing Disclosure Requirements under GEM Listing Rules](index=25&type=section&id=Continuing%20Disclosure%20Requirements%20under%20GEM%20Listing%20Rules) As of **June 30, 2025**, the Directors confirmed no knowledge of any circumstances requiring disclosure under Rules **17.15 to 17.21** or Rule **17.43** of the GEM Listing Rules - As of **June 30, 2025**, the Directors confirmed that they were not aware of any circumstances requiring disclosure under Rules **17.15 to 17.21** or Rule **17.43** of the GEM Listing Rules[80](index=80&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) The company's share option scheme, adopted on **June 20, 2018**, is valid for **10 years** with a **10%** maximum for total issued shares and **1%** for single participants, and had no outstanding options as of **June 30, 2025** - The share option scheme was adopted and approved on **June 20, 2018**, valid for **10 years**, expiring on **June 20, 2028**[81](index=81&type=chunk) - The maximum number of shares that can be issued shall not exceed **30%** of the shares issued from time to time, and the total number of shares that can be issued upon exercise of all share options shall not exceed **10%** of all issued shares on the listing date[81](index=81&type=chunk) - As of **June 30, 2025**, the Company had no outstanding share options under the share option scheme[83](index=83&type=chunk) [Events After Reporting Period](index=27&type=section&id=Events%20After%20Reporting%20Period) The Board is not aware of any other significant events after the reporting period - The Board is not aware of any other significant events after the reporting period[84](index=84&type=chunk) [Update on Directors' Information](index=27&type=section&id=Update%20on%20Directors%27%20Information) No changes in Directors' information requiring disclosure under Rule **17.50A(1)** of the Listing Rules occurred between the approval dates of the 2024 annual report and this report - No changes in Directors' information requiring disclosure under Rule **17.50A(1)** of the Listing Rules occurred from the date of the Board meeting approving the 2024 annual report to the date of the Board meeting approving this report[85](index=85&type=chunk) [Model Code for Securities Transactions](index=27&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted and ensured full compliance with a model code for securities transactions by Directors and employees with inside information throughout the reporting period - The Company has adopted a model code for securities transactions by Directors, and after specific inquiries to all Directors, they all confirmed full compliance with the required standards for dealing set out in the model code throughout the reporting period[86](index=86&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Securities](index=28&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Securities) As of **June 30, 2025**, non-executive director Mr. Ke Jinding and executive director Mr. Huang Dake held **14.06%** and **4.60%** interests, respectively, in the company's issued share capital through controlled corporations Directors' and Chief Executive's Interests in Securities | Name | Position | Nature of Interest | Number of Shares | Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Ke Jinding | Non-executive Director | Interest in controlled corporation | 37,968,750 shares(L) | 14.06% | | Mr. Huang Dake | Executive Director | Interest in controlled corporation | 12,430,934 shares(L) | 4.60% | - Mr. Ke Jinding holds interests through Zijiang Capital, and Mr. Huang Dake holds interests through HDK Capital[89](index=89&type=chunk) [Major Shareholders' Interests and Short Positions](index=29&type=section&id=Major%20Shareholders%27%20Interests%20and%20Short%20Positions) As of **June 30, 2025**, Mr. Zhou Yongwei, Septwolves Holdings, Zijiang Capital, Mr. Ke Shuiyuan, Shengshi Capital, and Mr. Huang Boni were disclosed as major shareholders, holding significant interests in the company's shares Major Shareholders' Interests | Name | Nature of Interest | Number of Shares | Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Zhou Yongwei | Interest in controlled corporation | 124,143,908 shares(L) | 45.98% | | Septwolves Holdings | Beneficial owner | 118,968,750 shares(L) | 44.06% | | Zijiang Capital | Beneficial owner | 37,968,750 shares(L) | 14.06% | | Mr. Ke Shuiyuan | Interest in controlled corporation | 37,968,750 shares(L) | 14.06% | | Shengshi Capital | Beneficial owner | 15,885,500 shares(L) | 5.88% | | Mr. Huang Boni | Interest in controlled corporation | 15,885,500 shares(L) | 5.88% | - Mr. Zhou Yongwei holds interests through Septwolves Holdings and SEPTWOLVES INTERNATIONAL GROUP LIMITED[92](index=92&type=chunk) - Mr. Ke Shuiyuan holds interests through Zijiang Capital, and Mr. Huang Boni holds interests through Shengshi Capital[92](index=92&type=chunk) [Continued Suspension of Trading](index=30&type=section&id=Continued%20Suspension%20of%20Trading) The company's shares have been suspended from trading on the Stock Exchange since **9:00 a.m. on June 9, 2025**, and will remain suspended until compliance with GEM Listing Rule **17.26** and resumption guidance is met - Trading in shares has been suspended on the Stock Exchange since **9:00 a.m. on June 9, 2025**, and will remain suspended until the Stock Exchange is satisfied that the Company has re-complied with GEM Listing Rule **17.26**, met the resumption guidance, and fully complied with the GEM Listing Rules[93](index=93&type=chunk) [Independent Review Report](index=31&type=section&id=Independent%20Review%20Report) UHY Certified Public Accountants reviewed Baiying Holdings Group Co., Ltd.'s interim financial report for the six months ended **June 30, 2025**, concluding no material non-compliance with Hong Kong Accounting Standard **34** - The independent review report was issued by UHY Certified Public Accountants, reviewing the interim financial report for the six months ended **June 30, 2025**[97](index=97&type=chunk)[100](index=100&type=chunk) - The review concluded that no matters were noted that caused the reviewer to believe the interim financial report was not prepared in all material respects in accordance with Hong Kong Accounting Standard **34**[99](index=99&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=32&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement shows the Group's condensed consolidated profit or loss for the six months ended **June 30, 2025**, with **RMB 17.1 million** profit from continuing operations offset by **RMB 12.3 million** loss from discontinued operations, resulting in a total profit of **RMB 4.8 million**, reversing the prior year's loss Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Revenue | 16,756,083 | 9,081,314 | | Profit before income tax | 10,073,231 | 1,562,747 | | Income tax credit/(expense) | 7,000,698 | (1,036,479) | | Profit for the period from continuing operations | 17,073,929 | 526,268 | | Loss for the period from discontinued operations | (12,302,136) | (10,230,269) | | Profit/(Loss) for the period | 4,771,793 | (9,704,001) | | Total comprehensive income/(loss) for the period | 4,754,410 | (9,722,966) | | Basic and diluted earnings/(loss) per share (RMB cents) | 1.80 | (3.60) | | Basic and diluted earnings per share from continuing operations (RMB cents) | 6.35 | (0.19) | - Revenue from continuing operations increased from **RMB 9.1 million** in the same period of 2024 to **RMB 16.8 million** in 2025[101](index=101&type=chunk) - Profit for the period turned from a loss of **RMB 9.7 million** in the same period of 2024 to a profit of **RMB 4.8 million** in 2025[101](index=101&type=chunk) [Condensed Consolidated Statement of Financial Position](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's condensed consolidated financial position as of **June 30, 2025**, showing total assets less current liabilities of **RMB 268.7 million** and net assets of **RMB 261.3 million**, with a significant decrease in non-current assets due to reduced property, plant, and equipment, and an increase in current assets Summary of Condensed Consolidated Statement of Financial Position | Indicator | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total non-current assets | 195,525,220 | 241,109,137 | | Total current assets | 144,576,624 | 135,749,207 | | Total current liabilities | 71,442,960 | 119,754,822 | | Net current assets | 73,133,664 | 15,994,385 | | Total assets less current liabilities | 268,658,884 | 257,103,522 | | Net assets | 261,256,856 | 221,547,928 | | Total equity | 261,256,856 | 221,547,928 | - Property, plant and equipment significantly decreased from **RMB 112.5 million** as of **December 31, 2024**, to **RMB 0.2 million** as of **June 30, 2025**, mainly due to the disposal of a subsidiary[104](index=104&type=chunk) - Loans and receivables increased from **RMB 173.1 million** as of **December 31, 2024**, to **RMB 250.4 million** as of **June 30, 2025**[104](index=104&type=chunk) - Borrowings decreased from **RMB 128.3 million** as of **December 31, 2024**, to **RMB 56.9 million** as of **June 30, 2025**[104](index=104&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=36&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the Group's condensed consolidated changes in equity for the six months ended **June 30, 2025**, showing a total equity increase from **RMB 221.5 million** to **RMB 261.3 million**, driven by a **RMB 4.8 million** profit and a **RMB 35.0 million** capital reserve increase from a subsidiary disposal Summary of Condensed Consolidated Statement of Changes in Equity | Indicator | Balance as at January 1, 2025 (RMB) | Profit for the period (RMB) | Other comprehensive loss (RMB) | Disposal of a subsidiary (RMB) | Balance as at June 30, 2025 (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Share capital | 2,301,857 | – | – | – | 2,301,857 | | Share premium | 238,097,760 | – | – | – | 238,097,760 | | Capital reserve | (6,640,176) | – | – | 34,954,518 | 28,314,342 | | Surplus reserve | 10,139,301 | – | – | – | 10,139,301 | | Other reserves | – | – | – | – | 34,954,518 | | Exchange reserve | 1,521,618 | – | (17,383) | – | 1,504,235 | | Retained profits | (26,294,529) | 4,852,999 | – | – | (21,441,530) | | Total equity attributable to owners of the Company | 219,125,831 | 4,852,999 | (17,383) | 34,954,518 | 258,915,965 | | Non-controlling interests | 2,422,097 | (81,206) | – | – | 2,340,891 | | **Total equity** | **221,547,928** | **4,771,793** | **(17,383)** | **34,954,518** | **261,256,856** | - Profit for the period was **RMB 4,771,793**, and other comprehensive loss was **RMB 17,383**[108](index=108&type=chunk) - Disposal of a subsidiary resulted in an increase in capital reserve of **RMB 34,954,518**[108](index=108&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=37&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's condensed consolidated cash flows for the six months ended **June 30, 2025**, showing **RMB 77.2 million** net cash used in operating activities, **RMB 49.8 million** net cash from investing activities, and **RMB 33.2 million** net cash from financing activities, resulting in a **RMB 5.8 million** net increase in cash and cash equivalents, with an ending balance of **RMB 25.5 million** Summary of Condensed Consolidated Statement of Cash Flows | Indicator | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Net cash used in operating activities | (77,214,823) | (22,456,501) | | Net cash generated from investing activities | 49,825,017 | 10,383,118 | | Net cash generated from financing activities | 33,187,798 | 8,408,581 | | Net increase/(decrease) in cash and cash equivalents | 5,797,992 | (3,664,802) | | Cash and cash equivalents at June 30 | 25,510,670 | 9,965,573 | - Net cash from investing activities mainly came from proceeds of **RMB 20.3 million** from disposal and redemption of investments and net proceeds of **RMB 12.2 million** received from the disposal of a subsidiary[109](index=109&type=chunk) - Net cash from financing activities mainly came from proceeds of **RMB 53.8 million** from borrowings, partially offset by repayment of borrowings of **RMB 20.0 million**[109](index=109&type=chunk) [Notes to the Unaudited Interim Financial Report](index=38&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes to the condensed consolidated financial statements, covering preparation basis, accounting policy changes, revenue, segment reporting, discontinued operations, impairment, income tax, EPS, PPE, receivables, financial assets, inventory, cash, borrowings, payables, capital, reserves, fair value, commitments, subsidiary disposal, and related party transactions [1. General Information](index=38&type=section&id=1.%20General%20Information) The Company was incorporated in the Cayman Islands on **June 5, 2017**, and its shares have been listed on GEM of the Hong Kong Stock Exchange since **July 18, 2018** - The Company was incorporated in the Cayman Islands on **June 5, 2017**, and its issued shares have been listed on GEM of the Hong Kong Stock Exchange since **July 18, 2018**[110](index=110&type=chunk)[111](index=111&type=chunk) [2. Basis of Preparation](index=38&type=section&id=2.%20Basis%20of%20Preparation) This unaudited interim financial report is prepared in accordance with Hong Kong Accounting Standard **34** "Interim Financial Reporting" and applicable GEM Listing Rules, authorized for issue on **August 28, 2025** - This unaudited interim financial report is prepared in accordance with Hong Kong Accounting Standard **34** "Interim Financial Reporting" and the applicable disclosure provisions of the GEM Listing Rules[112](index=112&type=chunk) [3. Changes in Accounting Policies](index=38&type=section&id=3.%20Changes%20in%20Accounting%20Policies) The Group applied amendments to Hong Kong Financial Reporting Standards, including HKAS **21**, and adopted a new policy for loss of control over a subsidiary, with no significant impact on current or prior period results - The Group applied amendments to Hong Kong Financial Reporting Standards issued by the HKICPA, including amendments to HKAS **21**, but they had no significant impact[113](index=113&type=chunk) - New accounting policies applied by the Group include the treatment of loss of control over a subsidiary[115](index=115&type=chunk) [4. Revenue and Segment Reporting](index=39&type=section&id=4.%20Revenue%20and%20Segment%20Reporting) The Group's principal businesses are equipment financing, financial information services, and packaging/paper product sales, with continuing operations revenue totaling **RMB 16.8 million**, where financial services contributed **RMB 11.7 million** profit and packaging/paper trading **RMB 0.01 million** profit [(a) Disaggregation of Revenue](index=39&type=section&id=(a)%20Disaggregation%20of%20Revenue) Total revenue from continuing operations was **RMB 16.8 million**, primarily from finance lease services interest income (**RMB 7.4 million**), financial information services revenue (**RMB 4.3 million**), and packaging paper sales (**RMB 5.1 million**) Disaggregation of Revenue from Continuing Operations | Revenue Type | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Sales of packaging and paper products | 5,072,847 | 6,293,347 | | Financial information services | 4,330,581 | – | | Interest income from finance lease receivables | 35,075 | 16,069 | | Interest income from sale-and-leaseback receivables under loans and receivables | 7,317,580 | 2,771,898 | | **Total** | **16,756,083** | **9,081,314** | - For the six months ended **June 30, 2025**, revenue from a single customer was less than **10%**[117](index=117&type=chunk) [(b) Segment Reporting](index=40&type=section&id=(b)%20Segment%20Reporting) The Group has two reportable segments: financial services, which generated **RMB 11.7 million** revenue and **RMB 17.3 million** profit, and packaging and paper products trading, with **RMB 5.1 million** revenue and **RMB 0.01 million** profit in the first half of 2025 - The Group presents two reportable segments: the financial services segment (providing finance lease services and financial information services) and the packaging and paper products trading segment (selling packaging and paper products)[120](index=120&type=chunk) Summary of Reportable Segment Results (For the six months ended June 30, 2025) | Indicator | Financial Services (RMB) | Packaging and Paper Products Trading (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | | Reportable segment revenue | 11,683,236 | 5,072,847 | 16,756,083 | | Reportable segment profit for the period | 17,264,072 | 10,603 | 17,274,675 | | Reportable segment assets | 332,450,032 | 15,524,758 | 347,974,790 | | Reportable segment liabilities | 87,929,119 | 10,322,779 | 98,251,898 | - Consolidated profit was **RMB 17,073,929**, reportable segment profit was **RMB 17,274,675**, and unallocated head office and corporate expenses were **RMB 200,746**[123](index=123&type=chunk) [5. Discontinued Operations](index=44&type=section&id=5.%20Discontinued%20Operations) The Group completed the disposal of Fujian Yongchun Qiaoxin Brewing Co., Ltd. on **June 13, 2025**, classifying its vinegar and condiment business as discontinued operations, which recorded a loss of **RMB 12.3 million** for the six months ended **June 30, 2025** - The disposal of all equity interests in Fujian Yongchun Qiaoxin Brewing Co., Ltd. ("Disposal Target") was completed on **June 13, 2025**, and its business of manufacturing and selling vinegar and other condiments is classified as a discontinued operation[128](index=128&type=chunk) Loss for the Period from Discontinued Operations | Indicator | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Sales revenue | 2,008,462 | 5,335,480 | | Loss before income tax | (12,352,710) | (10,273,775) | | Loss for the period from discontinued operations | (12,302,136) | (10,230,269) | - Net cash outflow from operating activities of discontinued operations was **RMB 9.4 million**, net cash inflow from investing activities was **RMB 1.7 million**, and net cash inflow from financing activities was **RMB 1.7 million**[131](index=131&type=chunk) [6. Impairment Losses Recognized/(Reversed)](index=46&type=section&id=6.%20Impairment%20Losses%20Recognized%2F(Reversed)) Total net impairment losses from continuing operations shifted from a **RMB 1.5 million** reversal in 2024 to a **RMB 0.09 million** recognition in 2025, primarily due to impairment losses on finance lease receivables Total Net Impairment Losses Recognized/(Reversed) | Asset Type | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Loans and receivables | (707,919) | (916,410) | | Finance lease receivables | 949,006 | (42,717) | | Trade and other receivables | (153,791) | (544,522) | | **Total net impairment losses recognized/(reversed)** | **87,296** | **(1,503,649)** | [7. Profit Before Income Tax](index=47&type=section&id=7.%20Profit%20Before%20Income%20Tax) Profit before income tax from continuing operations was **RMB 10.1 million**, influenced by staff costs, gain on transfer of finance lease receivables, loss from interest waiver on factoring receivables, amortization, depreciation, auditor's remuneration, legal and consulting expenses, and cost of inventories Components of Profit Before Income Tax | Item | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Staff costs | 1,495,712 | 2,355,161 | | Gain on transfer of finance lease receivables | (4,450,250) | – | | Loss from waiver of interest portion of factoring receivables | 2,000,855 | – | | Amortization cost of intangible assets | 31,437 | 38,367 | | Depreciation expense | 121,273 | 85,148 | | Auditor's remuneration | 368,421 | 363,429 | | Cost of inventories | 4,962,051 | 6,139,378 | [8. Income Tax (Credit)/Expense](index=48&type=section&id=8.%20Income%20Tax%20(Credit)%2FExpense) Continuing operations recorded an income tax credit of **RMB 7.0 million**, primarily due to the generation of deferred tax assets, contrasting with an income tax expense of **RMB 1.0 million** in the prior year Summary of Income Tax (Credit)/Expense | Item | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Current tax | 454,746 | 769,696 | | Deferred tax | (7,455,444) | 266,783 | | **Income tax (credit)/expense** | **(7,000,698)** | **1,036,479** | - The income tax credit was mainly due to the generation of deferred tax assets, with a tax impact of **RMB 9,137,500**[134](index=134&type=chunk) [9. Earnings/(Loss) Per Share](index=49&type=section&id=9.%20Earnings%2F(Loss)%20Per%20Share) For the six months ended **June 30, 2025**, basic and diluted earnings per share from continuing and discontinued operations were **RMB 1.80 cents**, reversing a **RMB 3.60 cents** loss from the prior year, with continuing operations contributing **RMB 6.35 cents** Summary of Earnings/(Loss) Per Share | Item | For the six months ended June 30, 2025 (RMB cents) | For the six months ended June 30, 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and diluted from continuing and discontinued operations | 1.80 | (3.60) | | Basic and diluted from continuing operations | 6.35 | (0.19) | | Basic and diluted loss from discontinued operations | (4.56) | (3.79) | - Basic earnings/(loss) per share for the year is calculated based on the profit/(loss) attributable to owners of the Company divided by the weighted average number of ordinary shares in issue during the interim period, which is **270,000,000 shares**[135](index=135&type=chunk) [10. Property, Plant and Equipment](index=50&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) For the six months ended **June 30, 2025**, the Group recognized **RMB 117,326** in right-of-use asset additions and **RMB 91,762** in office equipment purchases, while disposing of property, plant and equipment items due to a subsidiary disposal, with no impairment losses recognized - For the six months ended **June 30, 2025**, the Group recognized additions to right-of-use assets of **RMB 117,326**[140](index=140&type=chunk) - The Group purchased office equipment and machinery items costing **RMB 91,762**[141](index=141&type=chunk) - For the six months ended **June 30, 2025**, the Group disposed of property, plant and equipment items, mainly from the disposal of a subsidiary[141](index=141&type=chunk) - No impairment losses on property, plant and equipment were recognized during the period[142](index=142&type=chunk) [11. Loans and Receivables](index=50&type=section&id=11.%20Loans%20and%20Receivables) As of **June 30, 2025**, the Group's total loans and receivables were **RMB 250.4 million**, primarily from sale-and-leaseback transactions, with factoring receivables at zero carrying amount and a decrease in impairment provision for sale-and-leaseback receivables Summary of Loans and Receivables | Item | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Net factoring receivables with recourse | – | 1,484,635 | | Net receivables from sale-and-leaseback transactions | 250,371,457 | 171,622,554 | | **Total** | **250,371,457** | **173,107,189** | - Impairment loss provision for loans and receivables is based on the expected credit loss model; amounts overdue for more than **90 days** decreased from **RMB 10.1 million** to **RMB 6.8 million**[143](index=143&type=chunk) - Changes in impairment loss provision for factoring receivables show a reversal of impairment loss of **RMB 636,272** due to interest waiver[146](index=146&type=chunk) [12. Finance Lease Receivables](index=53&type=section&id=12.%20Finance%20Lease%20Receivables) As of **June 30, 2025**, the carrying amount of finance lease receivables significantly decreased to **RMB 1.4 million** from **RMB 15.4 million**, with overdue amounts over **90 days** falling to **RMB 4.4 million** due to debt transfer Summary of Finance Lease Receivables | Item | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Net finance lease receivables | 5,335,538 | 42,318,360 | | Less: Impairment loss provision | (3,940,735) | (26,895,456) | | **Carrying amount of finance lease receivables** | **1,394,803** | **15,422,904** | - Total finance lease receivables overdue for more than **90 days** decreased from **RMB 41.1 million** to **RMB 4.4 million**[150](index=150&type=chunk) - As of **June 30, 2025**, Xiamen Baiying transferred receivables totaling approximately **RMB 32,579,667** to Xiamen International Trust for a consideration of **RMB 18,000,000**, generating a gain of **RMB 4,450,250**[153](index=153&type=chunk) [13. Trade and Other Receivables](index=56&type=section&id=13.%20Trade%20and%20Other%20Receivables) As of **June 30, 2025**, total trade and other receivables significantly increased to **RMB 49.2 million** from **RMB 22.4 million**, mainly due to a substantial rise in other receivables, including **RMB 18.0 million** from Xiamen International Trust and **RMB 27.7 million** in outstanding debt from the buyer Summary of Trade and Other Receivables | Item | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Non-current assets | 9,651 | 1,239,488 | | Current assets | 49,194,696 | 21,157,640 | | **Total** | **49,204,347** | **22,397,128** | - Other receivables increased from **RMB 1.3 million** as of **December 31, 2024**, to **RMB 46.5 million** as of **June 30, 2025**, mainly referring to **RMB 18.0 million** from Xiamen International Trust and **RMB 27.7 million** in remaining outstanding debt from the buyer[157](index=157&type=chunk) Ageing Analysis of Trade Receivables (Net of Impairment Loss Provision) | Ageing | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Within 3 months | 1,861,736 | 5,516,243 | | Over 3 months but within 6 months | – | 101,750 | | Over 6 months but within 1 year | 142,606 | 404,539 | | Over 1 year but within 2 years | – | 1,520,866 | | **Total** | **2,004,342** | **7,543,398** | [14. Financial Assets at Fair Value Through Profit or Loss](index=58&type=section&id=14.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of **June 30, 2025**, the Group's financial assets at fair value through profit or loss were primarily **RMB 2.3 million** in wealth management products (Level 2 valuation), a decrease from **RMB 13.2 million** due to the absence of listed securities Summary of Financial Assets at Fair Value Through Profit or Loss | Item | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Wealth management products | 2,304,242 | 3,382,858 | | Listed securities in China | – | 9,829,112 | | **Total** | **2,304,242** | **13,211,970** | - The fair value of wealth management products is determined by reference to quotes published by the issuing banks at the end of the reporting period[159](index=159&type=chunk) [15. Inventories](index=58&type=section&id=15.%20Inventories) Due to the disposal of a subsidiary, the Group had no inventories as of **June 30, 2025** - Due to the disposal, we had no inventories as of **June 30, 2025**[160](index=160&type=chunk) [16. Cash and Cash Equivalents](index=58&type=section&id=16.%20Cash%20and%20Cash%20Equivalents) As of **June 30, 2025**, cash and cash equivalents amounted to **RMB 25.5 million**, an increase from **RMB 19.7 million**, with RMB remittances out of China subject to government foreign exchange controls Summary of Cash and Cash Equivalents | Item | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Bank balances | 25,510,670 | 19,730,061 | - RMB is not a freely convertible currency, and its remittance out of China is subject to foreign exchange controls issued by the Chinese government[161](index=161&type=chunk) [17. Borrowings](index=59&type=section&id=17.%20Borrowings) As of **June 30, 2025**, the Group's total borrowings significantly decreased to **RMB 56.9 million** from **RMB 128.3 million**, comprising **RMB 10.0 million** in bank loans and **RMB 46.9 million** in advances from related parties Summary of Borrowings | Item | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Bank loans | 10,000,000 | 53,287,871 | | Other borrowings (advances from related parties) | 46,900,000 | 15,000,000 | | Other borrowings (borrowings from third parties) | – | 60,000,000 | | **Total borrowings** | **56,900,000** | **128,287,871** | - As of **June 30, 2025**, no loans were secured by certain property, plant and equipment of the Group[162](index=162&type=chunk) - Borrowings from certain related parties amounted to **RMB 46,900,000**, bearing interest at annual rates ranging from **4.0% to 4.6%**, repayable within one year[163](index=163&type=chunk) Borrowing Repayment Schedule | Term | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Within one year | 56,900,000 | 96,980,000 | | After one year but within two years | – | 2,000,000 | | After two years but within five years | – | 12,536,603 | | After five years | – | 16,771,268 | | **Total** | **56,900,000** | **128,287,871** | [18. Trade and Other Liabilities](index=61&type=section&id=18.%20Trade%20and%20Other%20Liabilities) As of **June 30, 2025**, total trade and other liabilities decreased to **RMB 17.8 million** from **RMB 21.5 million**, mainly due to reductions in accrued staff costs, property, plant and equipment payables, and trade payables, partially offset by increased security deposits from lessees Summary of Trade and Other Liabilities | Item | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Non-current liabilities | 7,402,028 | 3,713,947 | | Current liabilities | 10,446,948 | 17,768,796 | | **Total** | **17,848,976** | **21,482,743** | - Security deposits received from lessees increased from **RMB 5.2 million** as of **December 31, 2024**, to **RMB 8.9 million** as of **June 30, 2025**[166](index=166&type=chunk)[58](index=58&type=chunk) - Accrued staff costs decreased from **RMB 3.8 million** as of **December 31, 2024**, to **RMB 0.6 million** as of **June 30, 2025**[167](index=167&type=chunk)[58](index=58&type=chunk) - As of **June 30, 2025**, there were no trade payables, compared to **RMB 0.9 million** as of **December 31, 2024**, mainly due to the disposal of the vinegar and other condiments business[167](index=167&type=chunk) [19. Capital, Reserves and Dividends](index=62&type=section&id=19.%20Capital%2C%20Reserves%20and%20Dividends) For the six months ended **June 30, 2025**, the Group neither paid nor proposed any dividends, maintaining **270,000,000** issued ordinary shares, with capital management focused on safeguarding going concern and balancing shareholder returns - The Group neither paid, declared, nor proposed any dividends for the six months ended **June 30, 2025**[168](index=168&type=chunk) - The number of issued and fully paid ordinary shares as of **June 30, 2025**, was **270,000,000**, the same as on **December 31, 2024**[168](index=168&type=chunk) - The primary objective of the Group's capital management is to safeguard its ability to continue as a going concern and to adjust the capital structure in response to changes in economic conditions[169](index=169&type=chunk) [20. Fair Value Measurement of Financial Instruments](index=62&type=section&id=20.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) As of **June 30, 2025**, the Group's financial assets measured at fair value were primarily **RMB 2.3 million** in Level 2 wealth management products, with no transfers between levels or into/out of Level 3 during the period Financial Assets Measured at Fair Value (Fair Value Hierarchy) | Item | Level 1 (RMB) | Level 2 (RMB) | Level 3 (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | As at June 30, 2025: Wealth management products | – | 2,304,242 | – | 2,304,242 | | As at December 31, 2024: Wealth management products | – | 3,382,858 | – | 3,382,858 | | As at December 31, 2024: Listed securities in China | 9,829,112 | – | – | 9,829,112 | - The fair value of wealth management products is determined by reference to quotes published by the issuing banks at the end of the reporting period[173](index=173&type=chunk) [21. Commitments](index=63&type=section&id=21.%20Commitments) As of **June 30, 2025**, the Group had no unfulfilled commitments for assets under construction that were contracted but not yet provided for in the financial statements - As of **June 30, 2025**, the Group had no unfulfilled commitments for assets under construction that were contracted but not yet provided for in the financial statements[174](index=174&type=chunk) [22. Disposal of a Subsidiary](index=64&type=section&id=22.%20Disposal%20of%20a%20Subsidiary) The Group completed the disposal of Fujian Yongchun Qiaoxin Brewing Co., Ltd. on **June 13, 2025**, for **RMB 13,450,000**, generating a gain of **RMB 34,954,518** and a net cash inflow of **RMB 12,205,264** - The disposal of all equity interests in Fujian Yongchun Qiaoxin Brewing Co., Ltd. ("Disposal Target") was completed on **June 13, 2025**[175](index=175&type=chunk) Gain and Net Cash Inflow from Disposal of a Subsidiary | Item | For the six months ended June 30, 2025 (RMB) | | :--- | :--- | | Cash consideration | 13,450,000 | | Gain on disposal of a subsidiary | 34,954,518 | | Net cash inflow from disposal | 12,205,264 | [23. Significant Related Party Transactions](index=65&type=section&id=23.%20Significant%20Related%20Party%20Transactions) This section discloses the Group's related party transactions, including interest expenses, rent, purchases, sales commissions, and marketing expenses, along with period-end balances and guarantees provided by related parties - The Group conducts related party transactions in the ordinary course of business on normal commercial terms and at market rates[184](index=184&type=chunk) Remuneration of Key Management Personnel | Item | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Remuneration of key management personnel | 391,871 | 656,470 | Summary of Related Party Transactions | Transaction Type | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Interest expense－Fujian Septwolves Group | 86,667 | 33,491 | | Rent and property management fees－Septwolves Asset Management | 122,207 | 64,343 | | Purchase of condiments－Sichuan Qingxiangyuan | – | 252,508 | | Sales commission income－Sichuan Qingxiangyuan | – | 93,803 | | Sales revenue－Fujian Septwolves Industrial | – | 94,825 | Summary of Related Party Balances | Item | As at June 30, 2025 (RMB) | As at December 31, 2024 (RMB) | | :--- | :--- | :--- | | Trade receivables－Qiaoxin Xiamen | 142,606 | – | | Other receivables－Yongchun Qiaoxin | 27,718,265 | – | | Borrowings－Quanzhou Baiying Huishang Technology | 20,000,000 | – | | Borrowings－Xiamen Zhipuxing Information | 26,900,000 | – | | Accounts payable and trade payables－Septwolves Asset Management | 125,608 | – | | Advances from related parties－Fujian Septwolves Group | – | 15,000,000 | - Related party Fujian Septwolves Group provided a guarantee to the Group for a maximum credit limit of **RMB 30,000,000**[187](index=187&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 會 就本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何 損 失 承 擔 任 何 責 任。 Bank of Zhengzhou Co., Ltd.* 董事長 中國河南省鄭州市 2025年8月28日 於 本 公 告 日 期，董 事 會 成 員 包 括 執 行 董 事 趙 飛 先 生 及 李 紅 女 士；非 執 行 董 事 張 繼 紅 女 士、劉 炳 恒 先 生 及 衛 志 剛 先 生；以 及 獨 立 非 執 行 董 事 李 小 建 先 生、王 寧 先 生、劉 亞 天 先 生 及 蕭 志 雄 先 生。 鄭州銀行股份有限公司 * （於中華人民共和國註冊成立的股份有限公司） （H股股份代號：6196） 截 至2025年6月30日止六個月中期業績公告 鄭州銀行股份有限公司*（「本 行」）董 事 會（「董事會」）欣 然 宣 佈，本 行 及 其 附屬公司截至2025年6月30日 止 六 個 月 未 經 審 計 之 合 併 中 期 業 績（「中 ...