香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何 部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 （股份代號：01456） （於中華人民共和國成立的股份有限公司） 中期業績公告 截至2025年6月30日止六個月 國聯民生證券股份有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附 屬公司截至2025年6月30日止六個月未經審核中期業績。本公告列載本公司2025年中 期報告全文，並符合香港聯合交易所有限公司證券上市規則有關中期業績初步公告 的相關規定。本公司2025年中期報告將適時刊載於香港聯合交易所有限公司的網站 www.hkexnews.hk及本公司的網站www.glsc.com.cn，並按本公司H股股東選擇收取公 司通訊的方式寄發予本公司H股股東。 承董事會命 國聯民生證券股份有限公司 董事長 顧偉 中國江蘇省無錫市 2025年8月28日 截至本公告日期，本公司執行董事為葛小波先生；本公司非執行董事為顧偉先生、 周衛平先生、吳衛華先生、楊振興先生及劉海林先生；及本公司獨立非執行董事為 ...

[Announcement and Company Information](index=1&type=section&id=Announcement%20and%20Company%20Information) This section covers disclaimers, legal notices, and the company's basic information regarding the unaudited interim financial results [Disclaimer and Legal Notice](index=1&type=section&id=Disclaimer%20and%20Legal%20Notice) This announcement is for illustrative purposes only, does not constitute a securities subscription invitation, and the HKEX bears no responsibility for its content - This announcement is for illustrative purposes only and does not constitute an invitation to subscribe for any securities[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever[1](index=1&type=chunk) - The securities mentioned in this announcement have not been and will not be offered or sold to the public in Hong Kong, the United States, or any other jurisdiction under any securities laws and regulations[2](index=2&type=chunk) [Company Information and Announcement Scope](index=1&type=section&id=Company%20Information%20and%20Announcement%20Scope) This announcement by Graphex Group Limited presents its unaudited interim consolidated financial results for the six months ended June 30, 2025, reviewed by the Audit Committee - The company name is GRAPHEX GROUP LIMITED (烯石電動汽車新材料控股有限公司), stock code: **6128**[3](index=3&type=chunk) - This announcement presents the unaudited interim consolidated financial results for the six months ended June 30, 2025, including comparative figures for the same period in 2024[4](index=4&type=chunk) - This announcement has been reviewed by the Company's Audit Committee and complies with the requirements of the Listing Rules of the Stock Exchange of Hong Kong regarding information to be included in preliminary announcements of interim results[4](index=4&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) This section provides an overview of key financial metrics, including revenue, adjusted segment EBITDA, and net loss, along with explanations of non-IFRS measures [Overview of Key Financial Indicators](index=2&type=section&id=Overview%20of%20Key%20Financial%20Indicators) For the six months ended June 30, 2025, total revenue decreased by 18% to HK$76,835 thousand, while adjusted segment EBITDA significantly increased by 103% to HK$9,525 thousand Key Financial Data for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 76,835 | 93,742 | (18)% | | Graphene Products Revenue | 48,389 | 61,489 | (21)% | | Landscape Design Revenue | 28,446 | 32,253 | (12)% | | Adjusted Segment EBITDA | 9,525 | 4,682 | 103% | | Loss Before Tax | (28,016) | (57,303) | (51)% | | Loss Attributable to Owners of the Company | (24,631) | (54,096) | (55)% | | Basic Loss Per Share (HK cents) | (6.23) | (16.83) | (63)% | Key Balance Sheet Data as of June 30, 2025 | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 891,292 | 809,348 | 10% | | Net Assets | 379,310 | 280,360 | 35% | | Shareholders' Equity | 379,270 | 280,359 | 35% | | Cash and Bank Balances | 11,242 | 15,547 | (28)% | | Debt | 222,023 | 235,980 | (6)% | [Explanation of Non-IFRS Financial Measures](index=2&type=section&id=Explanation%20of%20Non-IFRS%20Financial%20Measures) The company uses adjusted segment EBITDA as a supplementary non-IFRS measure to evaluate operating performance, excluding non-recurring or non-operating items for clearer insights - Adjusted segment EBITDA is a non-IFRS financial measure used to assess operating performance[5](index=5&type=chunk) - This indicator is defined as profit before interest expense, tax, depreciation, and amortization, excluding changes in fair value of financial assets, goodwill write-offs, impairment losses, share of loss of associates, loss on derecognition of bills payable, unallocated other income and gains, and corporate expenses[6](index=6&type=chunk) - Management believes this indicator provides useful information for investors to understand and evaluate the company's overall operating performance and compare it with peer companies[5](index=5&type=chunk) [Unaudited Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited interim condensed consolidated financial statements, including the income statement, statement of comprehensive income, and statement of financial position [Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue was HK$76,835 thousand, gross profit was HK$27,789 thousand, and the loss for the period significantly narrowed to HK$24,592 thousand Summary of Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 76,835 | 93,742 | | Cost of Sales | (49,046) | (63,375) | | Gross Profit | 27,789 | 30,367 | | Other Income and Gains | 3,017 | 6,934 | | Administrative Expenses | (49,975) | (67,270) | | Research and Development Costs | (2,554) | (7,760) | | Loss Before Tax | (28,016) | (57,303) | | Loss for the Period | (24,592) | (54,046) | | Loss Attributable to Owners of the Company | (24,631) | (54,096) | | Basic Loss Per Share (HK cents) | (6.23) | (16.83) | [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the loss for the period was HK$24,592 thousand, with other comprehensive income from foreign currency translation differences narrowing the total comprehensive loss to HK$17,089 thousand Summary of Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss for the Period | (24,592) | (54,046) | | Exchange Differences on Translation of Foreign Operations | 7,503 | (3,706) | | Other Comprehensive Income for the Period, Net of Tax | 7,503 | (3,706) | | Total Comprehensive Loss for the Period | (17,089) | (57,752) | | Total Comprehensive Loss Attributable to Owners of the Company | (17,128) | (57,802) | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased by 10% to HK$891,292 thousand, with net assets growing significantly by 35% to HK$379,310 thousand, despite a net current liability of HK$43,274 thousand Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 540,684 | 546,951 | | Total Current Assets | 350,608 | 262,397 | | Total Current Liabilities | 393,882 | 367,013 | | Net Current Liabilities | (43,274) | (104,616) | | Total Assets Less Current Liabilities | 497,410 | 442,335 | | Total Non-Current Liabilities | 118,100 | 161,975 | | Net Assets | 379,310 | 280,360 | | Total Equity | 379,310 | 280,360 | [Notes to the Unaudited Interim Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the company and group information, basis of preparation, accounting policy changes, and specific financial statement items [Company and Group Information](index=7&type=section&id=Company%20and%20Group%20Information) Graphex Group Limited, incorporated in the Cayman Islands, primarily engages in graphene product development for EV lithium-ion batteries and landscape design services - The company was incorporated in the Cayman Islands on **November 25, 2013**[11](index=11&type=chunk) - The Group's principal activities include the development and processing of graphene products (graphite anode materials for lithium-ion batteries used in electric vehicles, energy storage systems, and other applications) and landscape design services[11](index=11&type=chunk) [Basis of Preparation and Going Concern](index=7&type=section&id=Basis%20of%20Preparation%20and%20Going%20Concern) Interim financial statements are prepared under IAS 34 in HKD; despite losses and net current liabilities, the Board believes the Group can continue as a going concern due to various liquidity measures - The interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and presented in HKD[12](index=12&type=chunk) - The Group recorded a loss attributable to owners of the Company of **HK$24,631 thousand** for the six months ended June 30, 2025, and net current liabilities of **HK$43,274 thousand** at period-end[14](index=14&type=chunk) - The Board has taken several measures to improve liquidity, including securing a short-term loan of **HK$50,000 thousand**, implementing cost control, discussing new funding with potential investors, and receiving a bank's letter of intent for **RMB400 million** project financing[15](index=15&type=chunk)[18](index=18&type=chunk) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The interim condensed consolidated financial statements are prepared in HKD according to IAS 34 and should be read in conjunction with the Group's 2024 annual financial statements - The interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[12](index=12&type=chunk) - The financial statements are presented in HKD, with all values rounded to the nearest thousand[12](index=12&type=chunk) [Going Concern Basis](index=7&type=section&id=Going%20Concern%20Basis) Despite losses and net current liabilities, the Board, after reviewing cash flow forecasts and implementing measures like short-term loans and potential financing, believes the Group can continue as a going concern - The Group recorded a loss attributable to owners of the Company of **HK$24,631 thousand** and net current liabilities of **HK$43,274 thousand** for the six months ended June 30, 2025[14](index=14&type=chunk) - The Board has secured a short-term loan of **HK$50,000 thousand**, implemented cost control measures, and is discussing new funding with potential investors[15](index=15&type=chunk)[18](index=18&type=chunk) - Graphex (Shandong) New Energy Technology Co Ltd has received a bank's letter of intent to provide **RMB400 million** in bank financing for its project[18](index=18&type=chunk) [Changes in Accounting Policies](index=8&type=section&id=Changes%20in%20Accounting%20Policies) Accounting policies adopted for the interim financial information are consistent with the prior year, with the adoption of new standards effective January 1, 2025, having no significant impact - The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those applied in the Group's annual consolidated financial statements for the year ended December 31, 2024[17](index=17&type=chunk) - The adoption of IAS 21 (Amendments) "Lack of Exchangeability" had no significant impact on the preparation and presentation of the results and financial position for the current and prior periods[17](index=17&type=chunk) [Revenue Analysis](index=9&type=section&id=Revenue%20Analysis) For the six months ended June 30, 2025, total revenue was HK$76,835 thousand, with graphene product sales contributing HK$48,389 thousand and landscape design services HK$28,446 thousand, primarily from Mainland China Revenue Analysis (By Type of Goods or Services) | Type of Goods or Services | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sales of Graphene Products | 48,389 | 61,489 | | Landscape Design Services | 28,446 | 32,253 | | **Total Revenue** | **76,835** | **93,742** | Revenue Analysis (By Geographical Market) | Geographical Market | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Mainland China | 61,930 | 79,587 | | Hong Kong | 14,241 | 12,629 | | Others | 664 | 1,526 | | **Total Revenue** | **76,835** | **93,742** | Timing of Revenue Recognition | Timing of Revenue Recognition | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Goods Transferred at a Point in Time | 48,389 | 61,489 | | Services Transferred Over Time | 28,446 | 32,253 | | **Total Revenue** | **76,835** | **93,742** | [Operating Segment Information](index=9&type=section&id=Operating%20Segment%20Information) The Group operates two segments: graphene products and landscape design, with graphene products contributing HK$48,389 thousand in revenue and HK$10,563 thousand in adjusted EBITDA for the period - The Group's principal operating segments are the processing and sale of graphite and graphene-related products (Graphene Products Segment) and the provision of landscape design services (Landscape Design Segment)[20](index=20&type=chunk) Segment Revenue and Adjusted EBITDA | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2025 Adjusted EBITDA (HK$ thousand) | 2024 Adjusted EBITDA (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Graphene Products | 48,389 | 61,489 | 10,563 | 7,374 | | Landscape Design | 28,446 | 32,253 | (1,038) | (2,692) | | **Total** | **76,835** | **93,742** | **9,525** | **4,682** | [Segment Revenue and Results](index=10&type=section&id=Segment%20Revenue%20and%20Results) For the six months ended June 30, 2025, external sales for the Graphene Products segment were HK$48,389 thousand, and for Landscape Design, HK$28,446 thousand, resulting in a total segment loss of HK$11,123 thousand Segment Revenue and Results (2025) | Segment | Sales to External Customers (HK$ thousand) | Segment Results (HK$ thousand) | | :--- | :--- | :--- | | Graphene Products | 48,389 | (13,886) | | Landscape Design | 28,446 | 2,763 | | **Total** | **76,835** | **(11,123)** | [Segment Assets and Liabilities](index=11&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, total segment assets were HK$838,313 thousand, with the Graphene Products segment accounting for HK$736,242 thousand and total segment liabilities amounting to HK$210,824 thousand Segment Assets and Liabilities (June 30, 2025) | Segment | Segment Assets (HK$ thousand) | Segment Liabilities (HK$ thousand) | | :--- | :--- | :--- | | Graphene Products | 736,242 | 120,671 | | Landscape Design | 102,071 | 90,153 | | **Total** | **838,313** | **210,824** | [Other Segment Information](index=12&type=section&id=Other%20Segment%20Information) As of June 30, 2025, the Group recognized a net reversal of impairment loss on financial and contract assets of HK$4,496 thousand, with total depreciation and amortization of HK$24,080 thousand Other Segment Information (June 30, 2025) | Indicator | Graphene Products (HK$ thousand) | Landscape Design (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | Impairment Loss Recognized in Profit or Loss – Financial and Contract Assets | 1,579 | (6,075) | (4,496) | | Depreciation and Amortization | 22,425 | 1,655 | 24,080 | | Capital Expenditure | – | 49 | 49 | [Other Income and Gains](index=15&type=section&id=Other%20Income%20and%20Gains) For the six months ended June 30, 2025, total other income and gains decreased to HK$3,017 thousand, primarily comprising service income, interest income, government grants, and reversal of payables Analysis of Other Income and Gains | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Service Income | 1,420 | 4,969 | | Interest Income | 682 | 786 | | Government Grants | 431 | 291 | | Reversal of Payables | 277 | – | | **Total** | **3,017** | **6,934** | - Government grants have been received with no unfulfilled conditions or contingencies[30](index=30&type=chunk) [Finance Costs](index=15&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, total finance costs slightly decreased to HK$8,249 thousand, mainly consisting of interest on interest-bearing borrowings, bills payable, and lease liabilities Analysis of Finance Costs | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Interest-Bearing Borrowings | 4,911 | 4,621 | | Interest on Convertible Notes | 510 | 928 | | Interest on Bills Payable | 2,295 | 2,871 | | Interest on Lease Liabilities | 533 | 558 | | **Total** | **8,249** | **8,978** | [Components of Loss Before Tax](index=16&type=section&id=Components%20of%20Loss%20Before%20Tax) For the six months ended June 30, 2025, the loss before tax was HK$28,016 thousand, influenced by cost of sales, depreciation, R&D costs, employee benefits, and a net reversal of impairment loss on financial assets Major Components of Loss Before Tax | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cost of Sales | 49,046 | 63,375 | | Amortization and Depreciation | 24,425 | 24,826 | | Research and Development Costs | 2,554 | 7,760 | | Employee Benefit Expenses | 27,356 | 41,289 | | Net Impairment Loss on Financial and Contract Assets | (4,496) | 6,704 | [Income Tax](index=16&type=section&id=Income%20Tax) The Group's income tax varies by jurisdiction, with Hong Kong at 16.5%, certain Mainland China subsidiaries at a preferential 15%, others at 25%, and US subsidiaries at 21%, resulting in a total tax credit of HK$3,424 thousand - Hong Kong profits tax rate is **16.5%**[33](index=33&type=chunk) - Pan Asia Landscape Design (Shanghai) Co Ltd, Qianhai Pan Asia Landscape Design (Shenzhen) Co Ltd, and Heilongjiang Mudanjiang Agricultural Reclamation Tan Ao Graphene Deep Processing Co Ltd enjoy a preferential corporate income tax rate of **15%**[33](index=33&type=chunk)[34](index=34&type=chunk) - Other Mainland China subsidiaries are taxed at the statutory corporate income tax rate of **25%**, and Graphex Technologies, LLC in the US is taxed at **21%**[34](index=34&type=chunk)[35](index=35&type=chunk) Total Tax Credit for the Period | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Deferred Tax | (3,424) | (3,257) | | **Total Tax Credit for the Period** | **(3,424)** | **(3,257)** | [Dividends](index=17&type=section&id=Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[37](index=37&type=chunk) [Loss Per Share Attributable to Owners of the Company](index=17&type=section&id=Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, basic loss per share attributable to owners of the Company significantly narrowed to **6.23 HK cents**, calculated based on the period's loss and adjusted weighted average shares Loss Per Share Attributable to Owners of the Company | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (6.23) | (16.83) | - Basic loss per share is calculated based on the loss attributable to owners of the Company of **HK$24,631 thousand** and the weighted average number of ordinary shares in issue of **395,606,713** during the period[38](index=38&type=chunk) - The weighted average number of ordinary shares used in the calculation of basic loss per share has been adjusted for the bonus element of the share consolidation and rights issue, and comparative figures have been restated[39](index=39&type=chunk) [Trade and Bills Receivables](index=18&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, net trade and bills receivables decreased to HK$105,678 thousand, with the Group providing credit terms of 2 to 6 months and maintaining a strict credit policy Trade and Bills Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade and Bills Receivables | 202,606 | 276,606 | | Impairment Provision | (96,928) | (94,545) | | **Net Amount** | **105,678** | **182,061** | - The Group's credit period is two months, extendable up to six months for key customers, with credit limits in place[40](index=40&type=chunk) Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 6 Months | 39,388 | 71,681 | | Over 6 Months but Within 1 Year | 45,596 | 41,076 | | Over 1 Year but Within 2 Years | 20,694 | 69,304 | | **Total** | **105,678** | **182,061** | [Trade Payables](index=19&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables decreased to HK$31,405 thousand, are interest-free, and typically settled within three months Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 Year | 29,280 | 49,364 | | Over 1 Year but Within 2 Years | 50 | 55 | | Over 2 Years but Within 3 Years | 19 | 19 | | Over 3 Years | 2,056 | 2,024 | | **Total** | **31,405** | **51,462** | - Trade payables are interest-free and normally settled within three months[42](index=42&type=chunk) [Share Capital](index=19&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid ordinary share capital was HK$46,949 thousand, reflecting changes from a 5-to-1 share consolidation and a rights issue that raised approximately HK$115.7 million Issued and Fully Paid Share Capital | Share Capital Type | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Ordinary Shares | 46,949 | 11,738 | | Preference Shares | 3,236 | 3,236 | - The company completed a share consolidation on **March 26, 2025**, consolidating every five shares of HK$0.01 par value into one consolidated share of HK$0.05 par value[46](index=46&type=chunk) - The company completed a rights issue on **May 21, 2025**, allotting and issuing **704,226,370** shares on the basis of three rights shares for every one existing share held, raising net proceeds of approximately **HK$115.7 million**[46](index=46&type=chunk) [Warrants](index=21&type=section&id=Warrants) As of June 30, 2025, the company had **341,911,763** outstanding warrants, exercisable at **HK$0.17** per ordinary share, with their quantity and exercise price adjusted due to share consolidation and rights issue - As of June 30, 2025, the company had **341,911,763** outstanding warrants[47](index=47&type=chunk) - Each warrant entitles the holder to subscribe for one ordinary share of the company at an exercise price of **HK$0.17** per ordinary share[47](index=47&type=chunk) - The number and exercise price of the warrants have been adjusted due to the share consolidation and rights issue[47](index=47&type=chunk) [Events After Reporting Period and Comparative Figures](index=21&type=section&id=Events%20After%20Reporting%20Period%20and%20Comparative%20Figures) No significant events affecting the Group occurred after June 30, 2025, and certain comparative figures have been restated for consistent presentation - No significant events affecting the Group occurred after the six months ended June 30, 2025[48](index=48&type=chunk) - Certain comparative figures have been restated to conform to the presentation for the current period[49](index=49&type=chunk) [Events After Reporting Period](index=21&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the Group have occurred after the six months ended June 30, 2025, other than those disclosed in this interim report - Save as disclosed in this interim report, no significant events affecting the Group have occurred after the six months ended June 30, 2025[48](index=48&type=chunk) [Comparative Figures](index=21&type=section&id=Comparative%20Figures) Certain comparative information has been restated to ensure consistency with the presentation requirements for the current period - Certain comparative figures have been restated to conform to the presentation for the current period[49](index=49&type=chunk) [Approval of Financial Statements](index=21&type=section&id=Approval%20of%20Financial%20Statements) The Board of Directors approved and authorized the publication of these interim financial statements on August 28, 2025 - The Board of Directors approved and authorized the publication of the financial statements on **August 28, 2025**[50](index=50&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business and financial performance, liquidity, capital commitments, and future outlook [Business Review](index=22&type=section&id=Business%20Review) For the six months ended June 30, 2025, graphene product revenue decreased due to competition, while landscape design revenue declined due to the slowdown in China's real estate market - Graphene Products segment revenue decreased by **21.3%** year-on-year to approximately **HK$48.4 million**, accounting for **63%** of total revenue, primarily due to intense competition leading to price reductions[51](index=51&type=chunk) - The Graphene Products segment's adjusted EBITDA increased by **43.2%** year-on-year to approximately **HK$10.6 million**, mainly attributable to effective cost control measures[51](index=51&type=chunk) - Landscape Design Services segment revenue decreased by approximately **11.8%** to approximately **HK$28.4 million**, primarily due to the slowdown in China's real estate development market[53](index=53&type=chunk) - The total value of new contracts for the landscape design business decreased by approximately **37.6%** to approximately **HK$29.7 million**, with the number of new contracts falling from **57** to **43**[55](index=55&type=chunk) [Graphene Products Business](index=22&type=section&id=Graphene%20Products%20Business) Graphene product revenue decreased by 21.3% to HK$48.4 million, but adjusted EBITDA grew by 43.2% to HK$10.6 million due to cost control, with the company securing new patents for silicon-carbon anode materials - Graphene Products segment revenue decreased by **21.3%** to approximately **HK$48.4 million**, while adjusted EBITDA increased by **43.2%** to approximately **HK$10.6 million**[51](index=51&type=chunk) - Total production was approximately **5,000 tonnes** of spherical graphite, with all products manufactured and sold in China[51](index=51&type=chunk) - The company has obtained **three new patents** and filed **one new patent application** related to innovative processing technology and manufacturing of silicon-carbon anode materials[52](index=52&type=chunk) [Landscape Design Business](index=22&type=section&id=Landscape%20Design%20Business) Landscape design revenue decreased by 11.8% to HK$28.4 million due to the slowing Chinese real estate market, with new contracts totaling HK$29.7 million, a 37.6% reduction - Landscape Design Services segment revenue decreased by approximately **11.8%** to approximately **HK$28.4 million**, primarily due to the slowdown in China's real estate development market[53](index=53&type=chunk) - For the six months ended June 30, 2025, the total value of new contracts decreased to approximately **HK$29.7 million**, a reduction of approximately **37.6%** compared to the same period last year[55](index=55&type=chunk) - Approximately **71.4%** of new contracts were for projects located in China, and approximately **28.6%** were for projects located in Hong Kong[54](index=54&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) Total revenue decreased by 18% to HK$76.8 million, but gross profit margin improved to 36%, and administrative expenses significantly reduced, leading to a 55% narrower loss attributable to owners of the company - Total revenue decreased by **18%** year-on-year to approximately **HK$76.8 million**, primarily due to unfavorable market and economic conditions[56](index=56&type=chunk) - Cost of sales decreased by **22.7%** to approximately **HK$49 million**, largely consistent with the decrease in revenue[57](index=57&type=chunk) - Gross profit margin increased from approximately **32%** in the prior period to approximately **36%**, primarily due to an increase in the gross profit margin of the Graphene Products segment[58](index=58&type=chunk) - Administrative expenses decreased by **25.7%** to approximately **HK$50 million**, primarily due to a reduction in share-based payment expenses of approximately **HK$11.6 million** and a decrease in overall salaries of approximately **HK$6.1 million**[60](index=60&type=chunk) - A reversal of impairment loss on financial and contract assets of approximately **HK$4.5 million** was recognized, a **167.2%** improvement compared to an impairment loss of approximately **HK$6.7 million** in the prior period, mainly due to the recovery of an other receivable of approximately **HK$5.7 million**[61](index=61&type=chunk) - Loss attributable to owners of the Company was approximately **HK$24.6 million**, a significant reduction from **HK$54.1 million** in the prior period[62](index=62&type=chunk) [Revenue](index=23&type=section&id=Revenue) Total revenue for the first half of 2025 decreased by 18% to HK$76.8 million, with both graphene products and landscape design segments experiencing declines due to adverse market conditions - The Group's total revenue decreased to approximately **HK$76.8 million**, a year-on-year reduction of approximately **18%**[56](index=56&type=chunk) - Revenue from the Graphene Products segment decreased by approximately **21.3%** to approximately **HK$48.4 million**, and revenue from the Landscape Design segment decreased by approximately **11.8%** to approximately **HK$28.4 million**[56](index=56&type=chunk) [Cost of Sales](index=23&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, the cost of sales decreased by 22.7% to approximately HK$49 million, consistent with the reduction in revenue from both operating segments - Cost of sales decreased to approximately **HK$49 million**, a reduction of approximately **22.7%** compared to the prior period[57](index=57&type=chunk) - The decrease in cost of sales was broadly consistent with the reduction in revenue from both the Graphene Products segment and the Landscape Design segment[57](index=57&type=chunk) [Gross Profit and Gross Profit Margin](index=24&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit decreased by 8.3% to HK$27.8 million, but the gross profit margin improved from 32% to 36%, primarily driven by an increased margin in the graphene segment - Gross profit decreased to approximately **HK$27.8 million**, a reduction of approximately **8.3%** compared to the prior period[58](index=58&type=chunk) - Gross profit margin increased from approximately **32%** in the prior period to approximately **36%**, primarily due to an increase in the gross profit margin of the Graphene Products segment[58](index=58&type=chunk) [Selling and Marketing Expenses](index=24&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses decreased by 41.7% to approximately HK$0.7 million, mainly attributable to the reduction in revenue from the graphene segment - Selling and marketing expenses decreased to approximately **HK$0.7 million**, a reduction of approximately **41.7%** compared to the prior period[59](index=59&type=chunk) - This decrease was primarily due to the reduction in revenue from the Graphene Products segment[59](index=59&type=chunk) [Administrative Expenses](index=24&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 25.7% to approximately HK$50 million, mainly due to a reduction in share-based payment expenses and overall salaries - Administrative expenses decreased to approximately **HK$50 million**, a reduction of approximately **25.7%** compared to the prior period[60](index=60&type=chunk) - The decrease was primarily influenced by a reduction in share-based payment expenses of approximately **HK$11.6 million** and a decrease in the Group's overall salaries of approximately **HK$6.1 million**[60](index=60&type=chunk) [Impairment Loss on Financial and Contract Assets](index=24&type=section&id=Impairment%20Loss%20on%20Financial%20and%20Contract%20Assets) The Group recognized a reversal of impairment loss of approximately HK$4.5 million on trade receivables, contract assets, and other receivables, a significant improvement from the prior period's impairment loss - The Group recognized a reversal of impairment loss on trade receivables, contract assets, and other receivables of approximately **HK$4.5 million**[61](index=61&type=chunk) - This reversal of impairment loss represents a **167.2%** reduction compared to an impairment loss of approximately **HK$6.7 million** in the prior period[61](index=61&type=chunk) - The reduction was primarily due to the Group's recovery of an other receivable of approximately **HK$5.7 million** during the period[61](index=61&type=chunk) [Net Loss](index=24&type=section&id=Net%20Loss) For the six months ended June 30, 2025, the loss attributable to owners of the Company significantly narrowed to approximately HK$24.6 million, reflecting the combined benefits of cost control and impairment reversals - Loss attributable to owners of the Company was approximately **HK$24.6 million**, compared to approximately **HK$54.1 million** in the prior period[62](index=62&type=chunk) [Liquidity, Financial Resources, and Gearing Ratio](index=25&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's current ratio improved to 0.89x, cash and bank balances were HK$11.2 million, and the gearing ratio significantly decreased to 58.5% due to the rights issue Liquidity and Gearing Ratio | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Assets | 350,608 | 262,397 | | Current Liabilities | 393,882 | 367,013 | | Current Ratio | 0.89x | 0.71x | | Cash and Bank Balances | 11,242 | 15,547 | | Gearing Ratio | 58.5% | 84.2% | - The current ratio was approximately **0.89x**, an improvement from **0.71x** as of December 31, 2024, primarily due to the completion of the rights issue during the period[64](index=64&type=chunk) - The gearing ratio was approximately **58.5%**, a significant decrease from **84.2%** as of December 31, 2024[64](index=64&type=chunk) - The capital structure primarily comprises issued ordinary shares, preference shares, and debt securities, with outstanding corporate bonds of approximately **HK$110.1 million**, bills payable of approximately **HK$39.2 million**, and convertible notes of approximately **HK$3.8 million** at period-end[65](index=65&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities, though interests in a wholly-owned subsidiary were pledged as security for convertible notes and warrants - As of June 30, 2025, the Group had no significant contingent liabilities[66](index=66&type=chunk) - The interests in Sky Global Limited, an indirect wholly-owned subsidiary of the company, were pledged to Jeffrey Abramovitz as beneficiary, related to his subscription of the company's convertible notes and warrants, with a total principal amount of **US$15,000,000**[67](index=67&type=chunk) [Capital Commitments](index=26&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had contracted capital commitments of HK$35,032 thousand for property, plant, and equipment, with significant planned investments in graphite deep processing facilities in Jixi and Nanshu Capital Commitments | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contracted but Not Provided For Property, Plant and Equipment | 35,032 | 5,637 | - The company plans to establish a graphite deep processing production facility within the Jixi (Mashan) Graphite Industrial Park, with an estimated total investment of not less than **RMB200 million** for the first phase[69](index=69&type=chunk) - The Nanshu Town graphite anode material project (Phase I) has been delayed due to insufficient local power supply, with an estimated total investment of approximately **RMB1 billion**[70](index=70&type=chunk) - The second phase of the Nanshu Town graphite deep processing project has an estimated investment of **RMB2 billion**, primarily for the production and processing of lithium battery anode materials, with no formal agreements entered into to date[70](index=70&type=chunk) [Foreign Currency Risk](index=28&type=section&id=Foreign%20Currency%20Risk) Operating primarily in Hong Kong and China with transactions mostly in HKD and RMB, the Group has not identified significant foreign currency risk and monitors its position closely - The Group primarily operates and invests in Hong Kong and China, with most transactions denominated and settled in HKD and RMB[71](index=71&type=chunk) - No significant foreign currency risk has been identified for financial assets in China, as their denominated currency is substantially the same as the functional currency of the relevant Group entities involved in the transactions[71](index=71&type=chunk) - The Board will closely monitor foreign currency positions and consider managing foreign currency risk through non-financial means, managing foreign currencies used for transactions, early and delayed payments, and receivables management, among other natural hedging techniques[71](index=71&type=chunk) [Share Consolidation and Rights Issue](index=28&type=section&id=Share%20Consolidation%20and%20Rights%20Issue) During the six months ended June 30, 2025, the company completed a 5-to-1 share consolidation and a rights issue, resulting in changes to its authorized share capital and the issuance of **704,226,370** new shares - The company undertook a share consolidation, whereby every five issued and unissued shares of **HK$0.01** par value were consolidated into one consolidated share of **HK$0.05** par value[72](index=72&type=chunk) - The company conducted a rights issue on the basis of three rights shares for every one consolidated share held, at a subscription price of **HK$0.170** per rights share[72](index=72&type=chunk) - The share consolidation became effective on **March 26, 2025**, changing the company's authorized share capital to **HK$90,000,000**. On **May 22, 2025**, the company allotted and issued **704,226,370** shares under the rights issue[73](index=73&type=chunk)[74](index=74&type=chunk) [Human Resources and Employee Remuneration](index=28&type=section&id=Human%20Resources%20and%20Employee%20Remuneration) As of June 30, 2025, the Group had **219** employees, offering competitive remuneration, comprehensive benefits, and share schemes to attract and retain talent - As of June 30, 2025, the Group had **219** employees[75](index=75&type=chunk) - Employee remuneration is determined based on job nature, market trends, and individual performance, with benefits including Mandatory Provident Fund, employee retirement schemes, social security contributions, medical coverage, insurance, and training and development programs[75](index=75&type=chunk) - The Group has a range of company and subsidiary-level share schemes to reward employee contributions and attract talent[76](index=76&type=chunk) [Significant Investments and Future Plans](index=29&type=section&id=Significant%20Investments%20and%20Future%20Plans) Apart from disclosed capital commitments, there were no other significant investments, acquisitions, or disposals of subsidiaries during the review period, and no further major investment plans are currently authorized - Save as disclosed in this interim report, there were no other significant investments held, nor any significant acquisitions or disposals of subsidiaries during the review period[77](index=77&type=chunk) - As of the date of this interim report, the Board has not authorized any plans for other significant investments or additions to capital assets[77](index=77&type=chunk) [Outlook](index=29&type=section&id=Outlook) Despite slower electrification in the West, global battery demand is rising, and the company remains committed to producing high-quality anode materials, exploring growth paths, and seeking new investment opportunities - Despite slower electrification progress in Western countries, demand for batteries has significantly increased in other parts of the world[78](index=78&type=chunk) - The Group will continue to focus on producing the highest quality battery anode materials and implement expansion plans as appropriate[78](index=78&type=chunk) - The company is exploring additional growth avenues, seeking new investment opportunities to improve its financial position, and closely monitoring market trends and strategic partnerships to maintain ongoing resilience and adaptability[78](index=78&type=chunk) [Corporate Governance and Other Information](index=29&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's commitment to high corporate governance standards, compliance with the Model Code, and information regarding the Audit Committee and interim results review [Corporate Governance Practices](index=29&type=section&id=Corporate%20Governance%20Practices) The company is committed to high corporate governance standards, and the Board confirms compliance with the applicable code provisions of the Corporate Governance Code for the reporting period ended June 30, 2025 - The company is committed to achieving high standards of corporate governance to safeguard shareholders' interests and enhance corporate value and accountability[79](index=79&type=chunk) - The Directors confirm that the company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules for the reporting period ended June 30, 2025[79](index=79&type=chunk) [Standard Code for Directors' Securities Transactions](index=30&type=section&id=Standard%20Code%20for%20Directors'%20Securities%20Transactions) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance for the six months ended June 30, 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its code of conduct for directors' securities transactions[80](index=80&type=chunk) - All Directors confirmed their compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[80](index=80&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025[81](index=81&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The company's Audit Committee, comprising three independent non-executive directors with Mr. Liao Kwong Sang as chairman, reviews and oversees the Group's financial reporting and internal control procedures - The company has established an Audit Committee in accordance with Rule 3.21 of the Listing Rules and the Corporate Governance Code[82](index=82&type=chunk) - The Audit Committee is responsible for reviewing and overseeing the Group's financial reporting process and internal control procedures[82](index=82&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr. Liao Kwong Sang (Chairman), Ms. Tam Yip Fung Sin, and Mr. Wong Wan Choi[82](index=82&type=chunk) [Review of Interim Results](index=30&type=section&id=Review%20of%20Interim%20Results) The unaudited interim results for the six months ended June 30, 2025, were reviewed by the Audit Committee, which deemed them prepared in compliance with applicable accounting standards and Listing Rules - The Group's interim results for the six months ended June 30, 2025, have not been reviewed by external auditors[83](index=83&type=chunk) - The interim results have been reviewed by the company's Audit Committee, which is of the opinion that their preparation complies with applicable accounting standards and requirements, as well as the Listing Rules, and that adequate disclosures have been made[83](index=83&type=chunk) [Interim Dividend](index=30&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[84](index=84&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=31&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement is published on the HKEX and company websites, and the interim report for the six months ended June 30, 2025, will be available on these websites in due course - This announcement is published on the HKEX website www.hkexnews.hk and the company's website www.graphexgroup.com[85](index=85&type=chunk) - The interim report for the six months ended June 30, 2025, will be available on the aforementioned websites in due course[85](index=85&type=chunk) [Board of Directors](index=31&type=section&id=Board%20of%20Directors) As of August 28, 2025, the Board comprises three executive directors, one non-executive director, and three independent non-executive directors - As of August 28, 2025, the executive directors are Mr. Liu Hing Tat, Mr. Chan Yik Yan, and Mr. Qiu Bin[86](index=86&type=chunk) - The non-executive director is Mr. Ma Li Da[86](index=86&type=chunk) - The independent non-executive directors are Ms. Tam Yip Fung Sin, Mr. Wong Wan Choi, and Mr. Liao Kwong Sang[86](index=86&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) [Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) Revenue decreased **7.0%** to **RMB 1,144.8 million** for the six months ended June 30, 2025, with profit attributable to owners declining and no interim dividend declared Key Financial Data for the Six Months Ended June 30, 2025 (RMB million) | Indicator | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 1,144.8 | 1,231.2 | -7.0% | | Gross Profit | 407.6 | 396.3 | +2.8% | | Profit Attributable to Owners of the Company | 55.9 | 85.0 | -34.2% | | Adjusted EBITDA | 386.6 | 408.8 | -5.4% | - The Board has resolved not to declare any interim dividend for the reporting period[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were **RMB 4,716.8 million**, total liabilities **RMB 3,299.9 million**, and equity attributable to owners **RMB 1,400.8 million** Summary of Consolidated Statement of Financial Position as of June 30, 2025 (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 3,139,527 | 3,191,336 | | Current assets | 1,577,257 | 1,667,165 | | **Total Assets** | **4,716,784** | **4,858,501** | | **Equity** | | | | Equity attributable to owners of the Company | 1,400,784 | 1,345,843 | | Non-controlling interests | 16,109 | 29,300 | | **Total Equity** | **1,416,893** | **1,375,143** | | **Liabilities** | | | | Non-current liabilities | 1,456,419 | 1,492,846 | | Current liabilities | 1,843,472 | 1,990,512 | | **Total Liabilities** | **3,299,891** | **3,483,358** | | **Total Equity and Liabilities** | **4,716,784** | **4,858,501** | [Consolidated Statement of Profit or Loss](index=5&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue was **RMB 1,144.8 million**, gross profit **RMB 407.6 million**, and profit for the period **RMB 79.7 million** Summary of Consolidated Statement of Profit or Loss for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 1,144,849 | 1,231,205 | | Cost of sales | (737,259) | (834,918) | | **Gross Profit** | **407,590** | **396,287** | | Operating profit | 168,959 | 185,697 | | Profit before income tax | 119,441 | 125,148 | | Income tax expense | (39,696) | (38,027) | | **Profit for the period** | **79,745** | **87,121** | | Profit attributable to owners of the Company | 55,941 | 84,991 | | Profit attributable to non-controlling interests | 23,804 | 2,130 | | Basic and diluted earnings per share | RMB 0.04 | RMB 0.05 | [Consolidated Statement of Comprehensive Income](index=6&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income was **RMB 78.7 million**, with **RMB 54.9 million** attributable to owners Summary of Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 79,745 | 87,121 | | Items that will not be reclassified subsequently to profit or loss | | | | — Fair value changes of financial assets at fair value through other comprehensive income | (1,000) | 600 | | **Total comprehensive income for the period** | **78,745** | **87,721** | | Total comprehensive income attributable to owners of the Company | 54,941 | 85,591 | | Total comprehensive income attributable to non-controlling interests | 23,804 | 2,130 | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information and Basis of Preparation](index=7&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company provides integrated hospital and physical examination services in China, preparing interim financials under HKAS 34, with the going concern assumption deemed appropriate despite current liabilities exceeding current assets - The Group's business scope primarily involves providing integrated hospital services and physical examination services in China[11](index=11&type=chunk) - These interim condensed consolidated financial information have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[13](index=13&type=chunk) - Despite current liabilities exceeding current assets by **RMB 266.2 million** as of June 30, 2025, the Board considers the going concern basis appropriate due to confidence in future operating cash flows and the renewability of bank facilities[14](index=14&type=chunk) [Accounting Policies](index=8&type=section&id=Accounting%20Policies) HKAS 21 (Revised) — Lack of Exchangeability was adopted in this period with no material impact, and new/revised standards not yet adopted are also listed - Hong Kong Accounting Standard 21 (Revised) — Lack of Exchangeability has been adopted, with no impact on amounts recognized in prior years and no material impact expected on current or future reporting periods[16](index=16&type=chunk) New and Revised Standards and Interpretations Not Yet Adopted | Standard | Description | Effective Date | | :--- | :--- | :--- | | HKFRS 9 and HKFRS 7 (Amendments) | Amendments to Classification and Measurement of Financial Instruments | January 1, 2026 | | HKFRS 18 | Presentation and Disclosure in Financial Statements | January 1, 2027 | | IFRS 19 | Disclosures for Non-Publicly Accountable Subsidiaries | January 1, 2027 | | HKFRS 10 and HKAS 28 (Amendments) | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | To be determined | [Segment Information](index=9&type=section&id=Segment%20Information) The Group manages its business through two operating segments: integrated hospitals and physical examination centers, with major assets located in China, showing a decline in integrated hospital revenue and profit - The Group manages its business by two operating segments based on its services: integrated hospitals and physical examination centers[20](index=20&type=chunk) - The Group's principal assets are all located in Mainland China, thus no geographical segment analysis is presented[20](index=20&type=chunk) Segment Results for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | Integrated Hospitals | Physical Examination Centers | Total | | :--- | :--- | :--- | :--- | | Revenue | 234,004 | 925,129 | 1,144,849 | | Segment Profit | 33,258 | 241,539 | 273,119 | | Segment Assets (June 30, 2025) | 1,285,877 | 4,168,976 | 4,716,784 | | Segment Liabilities (June 30, 2025) | 590,167 | 3,065,492 | 3,299,891 | | Additions to Property and Equipment, Right-of-Use Assets and Intangible Assets | 13,969 | 161,118 | 175,087 | | Depreciation and Amortization | 24,740 | 186,646 | 211,436 | Segment Results for the Six Months Ended June 30, 2024 (RMB thousand) | Indicator | Integrated Hospitals | Physical Examination Centers | Total | | :--- | :--- | :--- | :--- | | Revenue | 323,966 | 922,936 | 1,231,205 | | Segment Profit | 72,356 | 215,616 | 287,673 | | Additions to Property and Equipment, Right-of-Use Assets and Intangible Assets | 37,419 | 284,359 | 321,778 | | Depreciation and Amortization | 24,255 | 192,251 | 216,506 | [Key Assets and Liabilities](index=14&type=section&id=Key%20Assets%20and%20Liabilities) This section details the composition and changes in the company's key assets and liabilities, including right-of-use assets, deferred tax assets, trade receivables, cash and bank balances, prepayments, share capital, borrowings, lease liabilities, contract liabilities, and trade and other payables [Right-of-Use Assets](index=14&type=section&id=Right-of-Use%20Assets) As of June 30, 2025, the net book value of right-of-use assets was **RMB 1,260.8 million**, a decrease from December 31, 2024, primarily comprising properties and land use rights Net Book Value of Right-of-Use Assets (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Properties | 1,258,170 | 1,294,849 | | Land use rights | 2,648 | 2,698 | | **Total** | **1,260,818** | **1,297,547** | - Land use rights with a total carrying amount of **RMB 2,648 thousand** as of June 30, 2025, were pledged for the Group's borrowings[31](index=31&type=chunk) [Deferred Tax Assets](index=17&type=section&id=Deferred%20Tax%20Assets) As of June 30, 2025, total deferred tax assets amounted to **RMB 143.6 million**, mainly arising from tax losses, right-of-use assets, and lease liabilities Composition of Deferred Tax Assets (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tax losses | 66,886 | 37,005 | | Right-of-use assets and lease liabilities | 47,794 | 45,401 | | Share option scheme | 21,882 | 24,279 | | Loss allowance for financial assets | 4,885 | 8,248 | | Impairment of property and equipment | 2,188 | 3,303 | | **Total Deferred Tax Assets** | **143,635** | **118,236** | [Trade Receivables](index=18&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were **RMB 244.8 million**, a significant decrease from year-end 2024, with the majority due within six months Trade Receivables (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross trade receivables | 262,714 | 357,264 | | Less: Loss allowance | (17,898) | (33,200) | | **Net amount** | **244,816** | **324,064** | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 6 months | 235,080 | 341,458 | | 6 months to 1 year | 17,694 | 8,079 | | 1 to 2 years | 2,984 | 2,911 | | 2 to 3 years | 2,669 | 646 | | Over 3 years | 4,287 | 4,170 | | **Total** | **262,714** | **357,264** | [Cash and Bank Balances](index=19&type=section&id=Cash%20and%20Bank%20Balances) As of June 30, 2025, cash and cash equivalents totaled **RMB 1,028.8 million**, primarily denominated in RMB, with restricted cash for natural gas heating service deposits and bank guarantees Cash and Cash Equivalents (RMB thousand) | Currency | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | RMB | 1,023,961 | 1,103,627 | | USD | 1,724 | 1,963 | | HKD | 3,159 | 4,227 | | **Total** | **1,028,844** | **1,109,817** | - Restricted cash includes **RMB 938 thousand** for natural gas heating service deposits and **RMB 1,099 thousand** for bank guarantee letters[37](index=37&type=chunk) [Prepayments](index=19&type=section&id=Prepayments) As of June 30, 2025, total prepayments were **RMB 66.4 million**, mainly for property and equipment, consumables, and other prepaid expenses Prepayments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current: Prepayments for property and equipment | 35,637 | 25,030 | | Current: Prepayments for consumables | 13,699 | 13,840 | | Current: Others | 17,022 | 16,209 | | **Total Prepayments** | **66,358** | **55,079** | - Other prepayments primarily include prepaid advertising expenses and prepaid property management fees[39](index=39&type=chunk) [Share Capital](index=20&type=section&id=Share%20Capital) As of June 30, 2025, and December 31, 2024, issued ordinary share capital remained unchanged at **RMB 1,065 thousand**, with the number of shares constant Ordinary Shares, Issued and Fully Paid | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of ordinary shares | 1,590,324,000 | 1,590,324,000 | | Share capital (RMB thousand) | 1,065 | 1,065 | [Borrowings](index=20&type=section&id=Borrowings) As of June 30, 2025, total bank borrowings were **RMB 770.8 million**, all secured and/or guaranteed, and denominated in RMB Bank Borrowings (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank borrowings — secured and/or guaranteed | 770,800 | 797,000 | | Less: Non-current portion of non-current borrowings | (240,400) | (254,600) | | **Current borrowings** | **530,400** | **542,400** | - All borrowings are denominated in RMB, and their fair value approximates their carrying amount[40](index=40&type=chunk) [Lease Liabilities](index=21&type=section&id=Lease%20Liabilities) As of June 30, 2025, the present value of lease liabilities was **RMB 1,474.9 million**, with **RMB 264.4 million** due within one year Present Value of Minimum Lease Payments (RMB thousand) | Term | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within one year | 264,433 | 272,308 | | After one year but within two years | 244,247 | 252,859 | | After two years but within five years | 523,028 | 547,076 | | After five years | 443,153 | 431,035 | | **Total** | **1,474,861** | **1,503,278** | [Contract Liabilities](index=21&type=section&id=Contract%20Liabilities) As of June 30, 2025, total contract liabilities were **RMB 630.5 million**, primarily from sales of physical examination cards, prepayments from physical examination customers, and hospital patients Contract Liabilities (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Sales of physical examination cards | 581,547 | 559,060 | | Prepayments from physical examination customers | 39,916 | 64,298 | | Prepayments from hospital patients | 9,059 | 7,257 | | **Total** | **630,522** | **630,615** | [Trade and Other Payables](index=22&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were **RMB 385.9 million**, a significant decrease from year-end 2024, with trade payables to third parties being the largest component Trade and Other Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables to third parties | 145,681 | 162,299 | | Payables for purchase of property and equipment | 81,672 | 111,248 | | Accrued staff salaries and benefits | 69,287 | 129,427 | | Deposits received | 24,698 | 19,082 | | **Total** | **385,868** | **495,179** | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 120,841 | 141,205 | | 3 to 6 months | 5,110 | 3,413 | | 6 months to 1 year | 5,957 | 3,953 | | 1 to 2 years | 4,593 | 3,887 | | 2 to 3 years | 1,118 | 979 | | Over 3 years | 8,062 | 8,862 | | **Total** | **145,681** | **162,299** | - Trade payables are generally settled within **30 to 60 days** after recognition[43](index=43&type=chunk) [Revenue and Expense Details](index=23&type=section&id=Revenue%20and%20Expense%20Details) This section details the composition of the company's revenue and major expenses, reflecting its cost structure and profitability in operating activities [Revenue Composition](index=23&type=section&id=Revenue%20Composition) For the six months ended June 30, 2025, total revenue was **RMB 1,144.8 million**, with physical examination services contributing the most, while integrated hospital service revenues declined across all categories Revenue Composition (RMB thousand) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | **Integrated Hospitals** | | | | Outpatient drug revenue | 21,834 | 33,035 | | Outpatient service revenue | 27,988 | 34,607 | | Inpatient drug revenue | 62,365 | 104,406 | | Inpatient service revenue | 107,533 | 136,221 | | **Physical Examination Centers** | | | | Physical examination service revenue | 924,923 | 922,445 | | Management service revenue and others | 206 | 491 | | **Total** | **1,144,849** | **1,231,205** | [Cost of Sales and Expenses](index=24&type=section&id=Cost%20of%20Sales%20and%20Expenses) For the six months ended June 30, 2025, total expenses were **RMB 991.0 million**, with employee benefit expenses, depreciation and amortization, drug costs, and medical consumables being the main components Major Expenses (RMB thousand) | Expense Item | 2025 | 2024 | | :--- | :--- | :--- | | Employee benefit expenses | 469,101 | 501,699 | | Depreciation and amortization | 211,436 | 216,506 | | Drug costs | 55,549 | 92,307 | | Medical consumables costs | 51,788 | 50,827 | | Outsourcing testing expenses | 49,140 | 61,058 | | Utility expenses | 45,512 | 44,441 | | Platform service fees | 29,612 | 23,846 | | Advertising expenses | 11,505 | 4,576 | | Impairment loss on financial assets/(reversal of impairment loss) | 2,543 | (1,871) | | **Total** | **991,013** | **1,053,454** | [Finance Costs and Income](index=25&type=section&id=Finance%20Costs%20and%20Income) For the six months ended June 30, 2025, net finance costs were **RMB 50.1 million**, primarily comprising interest on lease liabilities and borrowings, partially offset by interest income Net Finance Costs (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on lease liabilities | 42,168 | 47,636 | | Interest on borrowings | 11,071 | 15,897 | | Net exchange loss | 61 | 522 | | Finance costs | 53,300 | 64,055 | | Less: Interest income | (3,214) | (3,089) | | **Net Finance Costs** | **50,086** | **60,966** | [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **RMB 39.7 million**, mainly consisting of current and deferred income tax Income Tax Expense (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current income tax — current period | 46,692 | 48,203 | | Current income tax — under-provision in prior years | 18,403 | 4,854 | | Deferred income tax | (25,399) | (15,030) | | **Income Tax Expense** | **39,696** | **38,027** | - The applicable corporate income tax rate for the Group's subsidiaries in Mainland China is generally **25%**, with some subsidiaries enjoying a **15%** preferential rate[48](index=48&type=chunk) [Earnings Per Share and Dividends](index=26&type=section&id=Earnings%20Per%20Share%20and%20Dividends) For the six months ended June 30, 2025, basic earnings per share were **RMB 0.04**, and the Board resolved not to declare an interim dividend [Earnings Per Share](index=26&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were **RMB 0.04**, a decrease from **RMB 0.05** in the prior year, with no dilutive effect due to option exercise prices Earnings Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB thousand) | 55,941 | 84,991 | | Weighted average number of ordinary shares in issue | 1,590,324,000 | 1,590,324,000 | | **Basic Earnings Per Share (RMB)** | **0.04** | **0.05** | - For the six months ended June 30, 2025 and 2024, there was no dilutive effect as the average market price of the Company's shares was lower than the assumed exercise price of the share option arrangements[52](index=52&type=chunk) [Dividends](index=26&type=section&id=Dividends) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: HKD 0.045 per share)[53](index=53&type=chunk) [Business Overview and Strategic Outlook](index=27&type=section&id=Business%20Overview%20and%20Strategic%20Outlook) [Industry Overview](index=27&type=section&id=Industry%20Overview) China's healthcare industry is transforming, driven by policy and technology, showing multi-level development, increased competition, and innovative models, with AI widely applied and the health check-up market expanding - Policy level: Deepening medical service price reform, promoting equitable grassroots healthcare and upgrading public health services, and achieving universal access to medical technology through expanded medical insurance catalogs and centralized procurement of medical devices[54](index=54&type=chunk) - Technology level: Artificial intelligence is deeply integrated with medical scenarios, with AI-assisted diagnosis achieving breakthrough progress in imaging, and **92.6%** of national Grade III Class A hospitals having adopted AI technology by 2024[54](index=54&type=chunk) - Physical examination industry: The market size is expanding year by year, with the health check-up market expected to approach **RMB 380 billion** by 2025, primarily driven by an increase in average customer spending[55](index=55&type=chunk) [Integrated Hospital Business](index=28&type=section&id=Integrated%20Hospital%20Business) Nantong Ruici Hospital, a Grade III Class B general hospital, partnered with Shanghai Oriental Hospital to enhance management and medical services, though outpatient and inpatient visits declined during the period - Nantong Ruici Hospital: A large comprehensive hospital integrating medical treatment, teaching, and research, currently a Grade III Class B general hospital and a designated medical insurance unit[57](index=57&type=chunk) - Strategic cooperation: Signed a strategic cooperation agreement with Shanghai Oriental Hospital to establish "Shanghai Oriental Hospital Nantong Ruici Hospital," aiming to export top medical technology, management models, and brand influence[57](index=57&type=chunk) Nantong Ruici Hospital Service Visits | Service Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Outpatient service visits | 142,777 | 161,604 | -11.65% | | Inpatient service visits | 12,456 | 15,760 | -20.96% | - Ruici Meidi Nursing Home: As of June 30, 2025, **89 elderly residents** were admitted, with an occupancy rate of **84%**[58](index=58&type=chunk) [Physical Examination Business](index=29&type=section&id=Physical%20Examination%20Business) The Group's physical examination business launched a multi-brand strategy, including the high-end "Ruici Club" brand, focusing on key markets and enhancing customer experience and medical quality through satisfaction management and professional development - Multi-brand strategy: Initiated a multi-brand strategy, creating the high-end health check-up brand "Ruici Club" targeting corporate executives, elite white-collar workers, and high-net-worth families[59](index=59&type=chunk) - Market layout: Focusing on key markets in the Yangtze River Delta, Beijing, Greater Bay Area, and Zhejiang, while expanding into new first-tier and second-tier cities[59](index=59&type=chunk) - Number of centers: As of June 30, 2025, the Group operates **86 physical examination centers** nationwide, with **76 already operational**, covering **29 cities**[59](index=59&type=chunk) - Service quality improvement: Deepening the closed-loop satisfaction management mechanism, achieving an improvement rate of **93.13%** ("Ruici Physical Examination" brand) / **95.00%** ("Xingyuanhui" brand)[60](index=60&type=chunk) - Medical quality control: Launching professional capability building projects "Leading Action" and "Assisted Training Action" to establish a quality management and control system and standardized service processes[60](index=60&type=chunk)[61](index=61&type=chunk) [Future Outlook](index=30&type=section&id=Future%20Outlook) Facing an aging population and younger disease trends, the company will deepen hospital performance reform, with Nantong Ruici Hospital aiming for Grade III Class A status, while the physical examination business will pursue a multi-brand strategy, product upgrades, operational optimization, and talent development - Nantong Ruici Hospital goal: Aims to become a Grade III Class A general hospital and one of the three major medical centers in Nantong City[62](index=62&type=chunk) - Hospital development strategy: Plans to establish **2 provincial-level clinical key specialties** and **10 municipal-level clinical key specialties** within the next 5 years, focusing on management system reform and leveraging the strategic cooperation with Shanghai Oriental Hospital[62](index=62&type=chunk) - Physical examination business strategy: Will continue to implement a multi-brand synergistic strategy with "Ruici Physical Examination," "Ruici Club," and "Xingyuanhui," focusing on product iteration and upgrading, and developing post-examination medical services and derivative products[63](index=63&type=chunk) - Operations and talent: Continuously optimize operational management processes to improve capacity utilization; enhance online channel traffic conversion rates; and strengthen talent selection and development to build a reserve of young management cadres[63](index=63&type=chunk) [Financial Review](index=31&type=section&id=Financial%20Review) [Overall Financial Performance](index=31&type=section&id=Overall%20Financial%20Performance) During the reporting period, the Group's revenue decreased by **7.0%** year-on-year to **RMB 1,144.8 million**, primarily due to a decline in integrated hospital business revenue, while physical examination business revenue saw slight growth - Total revenue: The Group's revenue for the reporting period was **RMB 1,144.8 million**, a **7.0%** decrease compared to the same period in 2024[65](index=65&type=chunk) - Integrated hospital business revenue: **RMB 219.7 million**, a **28.7%** decrease from the same period in 2024, mainly due to external competitive pressure[65](index=65&type=chunk) - Physical examination business revenue: **RMB 925.1 million**, a **0.2%** increase from the same period in 2024, primarily driven by revenue growth from the high-end physical examination brand "Xingyuanhui"[66](index=66&type=chunk) [Revenue and Cost Analysis](index=31&type=section&id=Revenue%20and%20Cost%20Analysis) Total revenue decreased by **7.0%** and cost of sales by **11.7%** during the period, with both integrated hospital business revenue and cost of sales declining, while physical examination business cost of sales decreased due to efficiency and cost reduction strategies Revenue by Operating Segment (RMB thousand) | Segment | 2025 | 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Integrated Hospital Business | 234,004 | 323,966 | (27.8%) | | Physical Examination Business | 925,129 | 922,936 | 0.2% | | Inter-segment | (14,284) | (15,697) | (9.0%) | | **Total** | **1,144,849** | **1,231,205** | **(7.0%)** | Cost of Sales by Operating Segment (RMB thousand) | Segment | 2025 | 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Integrated Hospital Business | 201,037 | 250,714 | (19.8%) | | Physical Examination Business | 550,506 | 599,901 | (8.2%) | | Inter-segment | (14,284) | (15,697) | (9.0%) | | **Total** | **737,259** | **834,918** | **(11.7%)** | - The cost of sales for the physical examination business decreased by **8.2%**, mainly due to the Group's vigorous implementation of efficiency and cost reduction strategies, effectively controlling cost of sales[68](index=68&type=chunk) [Gross Profit and Operating Expenses](index=33&type=section&id=Gross%20Profit%20and%20Operating%20Expenses) Gross profit increased to **RMB 407.6 million**, with a **3.4 percentage point** rise in gross profit margin to **35.6%** due to efficiency and cost reduction, while distribution and selling expenses, administrative expenses, and other losses increased, and other income primarily came from government grants - Gross profit: Increased from **RMB 396.3 million** in the same period of 2024 to **RMB 407.6 million** in the reporting period[69](index=69&type=chunk) - Gross profit margin: Increased by **3.4 percentage points** from **32.2%** in the same period of 2024 to **35.6%** in the reporting period, primarily due to the Group's continuous promotion of efficiency and cost reduction initiatives[69](index=69&type=chunk) - Distribution and selling expenses: **RMB 134.5 million**, an increase from **RMB 108.6 million** in the same period of 2024, mainly due to increased human resources costs and promotion expenses for the physical examination business[70](index=70&type=chunk) - Administrative expenses: **RMB 116.7 million**, a slight increase from **RMB 111.8 million** in the same period of 2024, mainly due to the increase in the number of physical examination centers[71](index=71&type=chunk) - Other income: **RMB 21.0 million** (2024: **RMB 9.9 million**), primarily from government grants[72](index=72&type=chunk) - Other losses: **RMB 5.9 million** (2024: **RMB 1.9 million**), mainly due to liquidated damages from early termination of a physical examination center lease[73](index=73&type=chunk) - Net finance costs: **RMB 50.1 million** (2024: **RMB 61.0 million**), primarily comprising interest expenses of approximately **RMB 53.2 million** and interest income of **RMB 3.2 million**[74](index=74&type=chunk) - Share of results of investments accounted for using the equity method: Profit of **RMB 0.6 million** (2024: **RMB 0.4 million**), mainly due to operating profit from the joint venture Nantong Meidi[75](index=75&type=chunk) - Income tax expense: **RMB 39.7 million** (2024: **RMB 38.0 million**)[76](index=76&type=chunk) - Profit for the period: **RMB 79.7 million** (2024: **RMB 87.1 million**)[77](index=77&type=chunk) [Other Financial Indicators](index=34&type=section&id=Other%20Financial%20Indicators) This section covers changes and influencing factors for key financial indicators such as Adjusted EBITDA, assets and liabilities, liquidity, capital expenditure, pledged assets, and gearing ratio [Adjusted EBITDA](index=35&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for the reporting period was **RMB 386.6 million**, a **5.4%** year-on-year decrease, primarily due to lower integrated hospital business revenue, though the adjusted EBITDA margin slightly improved Adjusted EBITDA Calculation (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 79,745 | 87,121 | | Income tax expense | 39,696 | 38,027 | | Net finance costs | 50,086 | 60,966 | | Depreciation and amortization | 211,436 | 216,506 | | Pre-operating expenses and EBITDA loss from trial operations | 5,636 | 6,164 | | **Adjusted EBITDA** | **386,599** | **408,784** | | Adjusted EBITDA margin | 33.8% | 33.2% | - Adjusted EBITDA decreased by **5.4%**, mainly due to a slight decline in profit resulting from lower integrated hospital business revenue[80](index=80&type=chunk) [Assets, Liabilities and Liquidity](index=36&type=section&id=Assets%2C%20Liabilities%20and%20Liquidity) As of June 30, 2025, property and equipment and trade receivables both decreased, net current liabilities reduced, and the company maintained sufficient cash and cash equivalents and available bank facilities - Property and equipment: **RMB 1,435.8 million**, a decrease of **RMB 56.1 million** from December 31, 2024[82](index=82&type=chunk) - Trade receivables: **RMB 244.8 million**, a decrease of **RMB 79.3 million** from December 31, 2024[83](index=83&type=chunk) - Net current liabilities: **RMB 266.2 million**, a decrease from **RMB 323.3 million** as of December 31, 2024, mainly due to a reduction in borrowings at the end of the reporting period[84](index=84&type=chunk) - Cash and cash equivalents: **RMB 1,028.8 million** (December 31, 2024: **RMB 1,109.8 million**)[85](index=85&type=chunk) - Available bank facilities: **RMB 382.2 million** (December 31, 2024: **RMB 163.0 million**)[85](index=85&type=chunk) [Capital Expenditure and Commitments](index=37&type=section&id=Capital%20Expenditure%20and%20Commitments) Capital expenditure for the reporting period was **RMB 175.1 million**, mainly for physical examination center equipment, decoration, and new operating premises leases, with total capital commitments of **RMB 13.4 million** - Capital expenditure: **RMB 175.1 million** (2024: **RMB 321.8 million**), primarily for purchasing medical equipment, decoration, and leasing new operating premises for physical examination centers[88](index=88&type=chunk) - Total capital commitments: **RMB 13.4 million** (December 31, 2024: **RMB 16.9 million**), mainly for renovation of leased properties[88](index=88&type=chunk) [Pledged Assets and Contingent Liabilities](index=37&type=section&id=Pledged%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had **RMB 191.4 million** in assets pledged for borrowings and no significant contingent liabilities - Pledged assets: As of June 30, 2025, assets with a total carrying amount of **RMB 191,378 thousand** were pledged for the Group's borrowings[97](index=97&type=chunk) - Contingent liabilities: As of June 30, 2025, the Group had no significant contingent liabilities[90](index=90&type=chunk) [Gearing Ratio](index=37&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio slightly decreased to **46.2%** - Gearing ratio: **46.2%** (December 31, 2024: **46.4%**), calculated as net debt divided by total capital[91](index=91&type=chunk) [Risk Management](index=38&type=section&id=Risk%20Management) The Group primarily faces interest rate risk, foreign currency risk, and credit risk, which are controlled through prudent treasury policies and credit management measures to ensure sufficient liquidity [Cash Flow and Fair Value Interest Rate Risk](index=38&type=section&id=Cash%20Flow%20and%20Fair%20Value%20Interest%20Rate%20Risk) The company primarily faces interest rate risk from bank borrowings and lease liabilities, with **RMB 388.8 million** in floating-rate borrowings, and no hedging was undertaken during the reporting period - Sources of interest rate risk: Primarily from bank borrowings and lease liabilities[92](index=92&type=chunk) - Floating-rate borrowings: As of June 30, 2025, **RMB 388,800,000** of borrowings were at floating rates[92](index=92&type=chunk) - Hedging policy: No hedging was undertaken for cash flow and fair value interest rate risk during the reporting period[92](index=92&type=chunk) [Foreign Currency Risk](index=38&type=section&id=Foreign%20Currency%20Risk) The company had no significant foreign currency risk during the reporting period, with only minor bank deposits denominated in HKD and USD, and currently no foreign exchange hedging policy - Foreign currency risk: The Group had no significant foreign currency risk during the reporting period (except for bank deposits denominated in HKD and USD)[93](index=93&type=chunk) - Hedging policy: The Group currently has no foreign exchange hedging policy[93](index=93&type=chunk) [Credit Risk](index=38&type=section&id=Credit%20Risk) The company's credit risk is low, mainly from cash and cash equivalents and trade and other receivables, managed by assessing counterparty credit records and financial standing - Credit risk concentration: The Group does not have a high concentration of credit risk[94](index=94&type=chunk) - Credit risk management: Policies are in place to ensure that receivables with credit terms are granted to counterparties with sound credit records, and counterparty credit is continuously assessed[95](index=95&type=chunk) - Cash placement: Cash and cash equivalents are placed with major financial institutions that the directors believe have high credit quality[95](index=95&type=chunk) [Liquidity Management](index=39&type=section&id=Liquidity%20Management) The company monitors liquidity needs through rolling forecasts, ensuring sufficient cash for operations and maintaining adequate undrawn borrowing facilities - Liquidity management: The finance department monitors rolling forecasts of liquidity requirements to ensure sufficient cash for operating needs and maintains adequate undrawn borrowing facilities[96](index=96&type=chunk) - Future cash flow needs: Planned to be met by cash flows from operating activities, borrowings from financial institutions, and issuance of debt instruments or capital injections from the Company's shareholders as needed[96](index=96&type=chunk) [Human Resources](index=39&type=section&id=Human%20Resources) As of June 30, 2025, the Group had **8,363 employees**, with a decrease in employee benefit expenses, and provides regular training to enhance employee skills and knowledge - Number of employees: As of June 30, 2025, the Group had **8,363 employees** (December 31, 2024: **8,908 employees**)[98](index=98&type=chunk) - Employee benefit expenses: Approximately **RMB 469 million** (2024: approximately **RMB 502 million**)[98](index=98&type=chunk) - Remuneration policy: Determined based on employees' experience, qualifications, and general market conditions, and set by the Board according to their performance, qualifications, and abilities[98](index=98&type=chunk) - Training: The Company provides regular training to employees to enhance their skills and knowledge[98](index=98&type=chunk) [Interim Dividend](index=39&type=section&id=Interim%20Dividend) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the reporting period (six months ended June 30, 2024: HKD 0.045 per share)[99](index=99&type=chunk) [Corporate Governance and Other Information](index=40&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Code](index=40&type=section&id=Corporate%20Governance%20Code) The company adopted the HKEX Corporate Governance Code, with deviations in directors' legal action insurance and the combined roles of Chairman and CEO, which the Board deems manageable - The Company has adopted the code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[100](index=100&type=chunk) - Deviation from Code Provision C.1.7: No insurance has been purchased for legal actions against directors, but the Board believes the litigation risk faced by directors is controllable[100](index=100&type=chunk) - Deviation from Code Provision C.2.1: Dr. Fang Yixin holds both the Chairman and Chief Executive Officer roles, which the Board believes facilitates the Group's implementation of new business strategies, and the operations of the Board and senior management ensure a balance of power and authority[101](index=101&type=chunk) [Standard Code for Securities Transactions](index=41&type=section&id=Standard%20Code%20for%20Securities%20Transactions) All directors confirmed compliance with the Standard Code for Securities Transactions, and the company is unaware of any non-compliance by senior management - All directors confirmed compliance with the Standard Code during the reporting period[103](index=103&type=chunk) - The Company is not aware of any non-compliance with the Standard Code by any senior management of the Group during the reporting period[103](index=103&type=chunk) [Dealings in Listed Securities](index=41&type=section&id=Dealings%20in%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of its 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[104](index=104&type=chunk) [Review of Financial Information](index=41&type=section&id=Review%20of%20Financial%20Information) The Board's audit committee reviewed the interim condensed consolidated financial information with management and external auditors, who also conducted an independent review - The Board's audit committee has discussed and reviewed the Group's unaudited interim condensed consolidated financial information for the reporting period with management and external auditors[105](index=105&type=chunk) - The Company's external auditor, BDO Limited, has conducted an independent review of the Group's interim condensed consolidated financial information in accordance with Hong Kong Standard on Review Engagements 2410[106](index=106&type=chunk) [Publication of Announcement and Interim Report](index=42&type=section&id=Publication%20of%20Announcement%20and%20Interim%20Report) This announcement and the interim report will be published on the HKEX website and the company's website - This announcement will be published on the HKEX website (www.hkexnews.hk) and the Company's website (www.rich-healthcare.com)[107](index=107&type=chunk) - The Company's interim report for the reporting period, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the above websites in due course[107](index=107&type=chunk) [Acknowledgement and Board Composition](index=42&type=section&id=Acknowledgement%20and%20Board%20Composition) The Board extends gratitude to all colleagues, shareholders, customers, banks, and business contacts for their support, and as of the announcement date, comprises four executive and three independent non-executive directors - The Board expresses its gratitude to all colleagues for their diligence, dedication, loyalty, and integrity, as well as to all shareholders, customers, banks, and other business contacts for their trust and support[108](index=108&type=chunk) - As of the date of this announcement, the Board comprises four executive directors (Dr. Fang Yixin, Dr. Mei Hong, Mr. Fang Haoze, and Ms. Lin Xiaoying) and three independent non-executive directors (Dr. Wang Yong, Mr. Jiang Peixing, and Ms. Huang Siying)[110](index=110&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Key financial indicators for H1 2025 show revenue growth of 8.3% to RMB 441.4 million, net profit up 24.4% to RMB 21.7 million, and cash and cash equivalents increasing by 12.73% Key Financial Indicators Comparison for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 441.4 | 407.5 | +8.3% | | Gross Profit | 62.4 | 61.3 | +1.9% | | Gross Profit Margin | 14.1% | 15.0% | -0.9 percentage points | | Net Profit | 21.7 | 17.5 | +24.4% | | Cash and Cash Equivalents (End of Period) | 188.08 | 166.8 (Dec 31, 2024) | +12.73% | - The Board has decided not to declare any interim dividend for the reporting period[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the interim condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue increased by 8.3% to RMB 441.4 million, net profit grew by 24.4% to RMB 21.7 million, and basic earnings per share rose to RMB 0.07 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 441,387 | 407,475 | | Cost of Services | (378,956) | (346,223) | | Gross Profit | 62,431 | 61,252 | | Profit Before Tax | 27,726 | 24,338 | | Income Tax Expense | (6,007) | (6,875) | | Profit and Total Comprehensive Income for the Period | 21,719 | 17,463 | | Profit Attributable to Owners of the Parent | 21,723 | 17,558 | | Basic and Diluted Earnings Per Share (RMB) | 0.07 | 0.06 | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets both increased, with a significant rise in net current assets, while non-current assets slightly decreased Interim Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 242,269 | 248,621 | | Total Current Assets | 579,026 | 486,426 | | Total Current Liabilities | 329,502 | 291,668 | | Net Current Assets | 249,524 | 194,758 | | Total Assets Less Current Liabilities | 491,793 | 443,379 | | Total Non-Current Liabilities | 116,475 | 90,042 | | Total Equity | 375,318 | 353,337 | [Notes to the Interim Condensed Consolidated Financial Information](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering general information, basis of preparation, segment reporting, revenue, expenses, and balance sheet items [General Information](index=5&type=section&id=1.%20General%20Information) Runhua Living Service Group Holdings Limited is an investment holding company incorporated in the Cayman Islands, primarily providing property management, engineering, landscaping, investment property leasing, and other services through its PRC subsidiaries, with its shares listed on the Main Board of the Hong Kong Stock Exchange on January 17, 2023 - The company is incorporated in the Cayman Islands, with its principal place of business in Jinan, Shandong Province, China[8](index=8&type=chunk) - The company is an investment holding company, with its subsidiaries providing property management, property engineering and landscaping, investment property leasing, and other services in China[9](index=9&type=chunk) - The company's shares were listed on the Main Board of the Hong Kong Stock Exchange on **January 17, 2023**[10](index=10&type=chunk) [Basis of Preparation and Application of HKFRS Amendments](index=5&type=section&id=2.1%20Basis%20of%20Preparation%20and%202.2%20Application%20of%20HKFRS%20Amendments) The interim financial information is prepared in accordance with HKAS 34 and the Listing Rules, with the first-time application of HKFRS amendments having no significant impact - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange[12](index=12&type=chunk) - The amendments to Hong Kong Financial Reporting Standards were first applied during this interim period, but they had no significant impact on the Group's financial performance, position, or disclosures[13](index=13&type=chunk) [Operating Segment Information](index=6&type=section&id=3.%20Operating%20Segment%20Information) The company is divided into four reportable operating segments based on service type: property management, property engineering and landscaping, investment property leasing, and other services, with management independently monitoring each segment for resource allocation and performance assessment - The Group's four reportable operating segments are: property management services, property engineering and landscaping services, leasing services for investment properties, and other services[15](index=15&type=chunk)[16](index=16&type=chunk) - Management independently monitors the performance of each operating segment to make decisions on resource allocation and performance assessment[15](index=15&type=chunk) Segment Revenue and Results for H1 2025 | Segment | Revenue (RMB thousand) | Results (RMB thousand) | | :--- | :--- | :--- | | Property Management Services | 415,758 | 20,990 | | Property Engineering and Landscaping Services | 16,089 | 2,113 | | Leasing Services for Investment Properties | 8,298 | 2,790 | | Other | 1,242 | 44 | | **Total** | **441,387** | **25,937** | [Revenue, Other Income and Gains and Expenses, Net](index=8&type=section&id=4.%20Revenue,%20Other%20Income%20and%20Gains%20and%20Expenses,%20Net) During the reporting period, total revenue increased by 8.3% to RMB 441.4 million, primarily driven by customer contract revenue, while other income and gains, net, surged by 95.2% mainly due to a significant increase in government grants Revenue Analysis | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 433,089 | 393,899 | | Rental Income from Operating Leases of Investment Properties | 8,298 | 13,576 | | **Total Revenue** | **441,387** | **407,475** | Breakdown of Revenue from Contracts with Customers | Service Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Management Services | 415,758 | 379,581 | | Property Engineering and Landscaping Services | 16,089 | 6,876 | | Other | 1,242 | 7,442 | | **Total Revenue from Contracts with Customers** | **433,089** | **393,899** | Other Income and Gains and Expenses, Net | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 5,034 | 88 | | Bank Interest Income | 135 | 341 | | Net Exchange Differences | (272) | 2,144 | | **Total** | **5,681** | **2,910** | [Profit Before Tax](index=10&type=section&id=5.%20Profit%20Before%20Tax) During the reporting period, the company's profit before tax was RMB 27.7 million, with major costs including cost of services provided, depreciation, amortization, and employee benefit expenses Profit Before Tax Deductions/(Credits) | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Services Provided | 213,067 | 139,791 | | Depreciation of Property and Equipment | 2,710 | 2,682 | | Depreciation of Investment Properties | 9,428 | 9,603 | | Employee Benefit Expenses | 227,066 | 236,833 | | Impairment (Reversal) Provision for Trade Receivables | (312) | (1,496) | [Finance Costs](index=10&type=section&id=6.%20Finance%20Costs) During the reporting period, finance costs increased by 4.9% to RMB 4.5 million, primarily comprising interest on interest-bearing bank borrowings and lease liabilities Finance Costs Analysis | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on Interest-Bearing Bank Borrowings | 3,414 | 2,929 | | Interest on Lease Liabilities | 1,042 | 1,317 | | **Total** | **4,456** | **4,246** | [Income Tax Expense](index=11&type=section&id=7.%20Income%20Tax%20Expense) During the reporting period, income tax expense decreased by 12.6% to RMB 6.0 million, with the effective tax rate falling from 28.2% to 21.7%, mainly due to preferential income tax policies for small and micro enterprises in China Income Tax Expense Analysis | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 6,390 | 7,245 | | Deferred Tax | (383) | (649) | | **Total** | **6,007** | **6,875** | - The income tax rate for PRC subsidiaries is **25%**, but some subsidiaries qualifying as small and micro enterprises enjoy tax incentives[28](index=28&type=chunk)[29](index=29&type=chunk) - No Hong Kong profits tax provision was made for Hong Kong subsidiaries as they did not generate assessable profits during the reporting period[27](index=27&type=chunk) [Interim Dividends](index=12&type=section&id=8.%20Interim%20Dividends) The Board has decided not to declare any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[30](index=30&type=chunk) [Earnings Per Share Attributable to Owners of the Parent](index=12&type=section&id=9.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) During the reporting period, basic and diluted earnings per share attributable to owners of the parent was RMB 0.07, higher than RMB 0.06 in the same period last year Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent (RMB thousand) | 21,723 | 17,558 | | Weighted Average Number of Ordinary Shares Issued | 294,430,694 | 300,000,000 | | Basic and Diluted Earnings Per Share (RMB) | 0.07 | 0.06 | - The Group had no potentially dilutive ordinary shares outstanding during the period[32](index=32&type=chunk) [Investment Properties](index=13&type=section&id=10.%20Investment%20Properties) As of June 30, 2025, the carrying amount of investment properties decreased to RMB 63.6 million, primarily due to reduced depreciation and re-recognition amounts, with the company owning 35 self-owned and 4 leased investment properties - The carrying amount of investment properties was **RMB 63,589 thousand** as of June 30, 2025, a decrease from **RMB 74,539 thousand** as of December 31, 2024[6](index=6&type=chunk)[34](index=34&type=chunk) - As of June 30, 2025, the Group owned **35 self-owned investment properties** and **4 leased investment properties**[43](index=43&type=chunk) - The fair value of investment properties was approximately **RMB 73,877,700** (June 30, 2024: RMB 97,298,000)[34](index=34&type=chunk) [Trade and Bills Receivables](index=13&type=section&id=11.%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased to RMB 311 million, or RMB 308.5 million after impairment, primarily due to revenue growth and extended credit terms for government clients Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 309,061 | 261,034 | | Bills Receivables | 1,984 | 727 | | Impairment | (2,556) | (2,868) | | **Total** | **308,489** | **258,893** | Ageing Analysis of Trade Receivables (Net of Impairment) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 284,142 | 241,704 | | 1 to 2 years | 11,546 | 9,193 | | Over 2 years | 10,817 | 7,269 | | **Total** | **306,505** | **258,166** | [Trade Payables](index=14&type=section&id=12.%20Trade%20Payables) As of June 30, 2025, trade payables decreased by 2.8% to RMB 82.8 million Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 70,808 | 74,134 | | 3 to 6 months | 169 | 3,968 | | 6 months to 1 year | 4,136 | 2,391 | | Over 1 year | 7,647 | 4,684 | | **Total** | **82,760** | **85,177** | [Share Capital](index=14&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the company had 300 million ordinary shares issued, with a par value of US$0.0001, including 5,569,306 treasury shares - As of June 30, 2025, the total number of issued ordinary shares and authorized ordinary shares of the company remained unchanged at **300,000,000 shares** and **500,000,000 shares**, respectively[37](index=37&type=chunk) - The issued shares include **5,569,306 treasury shares**, held and issued under the pre-IPO restricted share unit scheme[37](index=37&type=chunk) [Events After the Reporting Period](index=14&type=section&id=14.%20Events%20After%20the%20Reporting%20Period) No significant events occurred after the end of the reporting period - No significant events occurred after the end of the reporting period[38](index=38&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business operations, future prospects, and provides a detailed analysis of financial performance, balance sheet items, liquidity, and capital structure [Business Review](index=15&type=section&id=Business%20Review) The Group's business is primarily divided into four segments: property management, property engineering and landscaping, investment property leasing, and other services, with property management being the core revenue source, accounting for 94.2% of total revenue, particularly strong in non-residential (especially hospital) property management [Business Overview](index=15&type=section&id=Business%20Overview) The Group's services are categorized into four segments: property management, property engineering and landscaping, investment property leasing, and other services, with property management being the primary revenue driver, especially in non-residential properties - The Group's services are broadly categorized into four business segments: property management services, property engineering and landscaping services, leasing services for investment properties, and other services[39](index=39&type=chunk) - During the reporting period, **94.2% of the Group's revenue** was derived from property management services, primarily from non-residential properties, achieving excellent results in hospital property management[39](index=39&type=chunk) [Property Management Services](index=15&type=section&id=Property%20Management%20Services) The Group provides comprehensive property management services, including typical services and hospital central transportation, strategically focusing on non-residential properties in China, which generated 94.2% of total revenue - The Group provides typical property management services (such as cleaning, security, maintenance, customer service) and hospital central transportation services[40](index=40&type=chunk) - During the reporting period, **94.2% of total revenue** was generated from property management services, with **94.0% from non-residential properties** (such as hospitals, public properties, and commercial properties) and **6.0% from residential properties**[41](index=41&type=chunk) - The Group's property management services strategically focus on non-residential properties in China[41](index=41&type=chunk) [Property Engineering and Landscaping Services](index=16&type=section&id=Property%20Engineering%20and%20Landscaping%20Services) The Group offers diverse property engineering and landscaping services, including maintenance, renovation, and landscape work, often identifying opportunities while providing daily on-site property management - The Group provides diversified services, including critical maintenance, interior decoration, alteration and addition of building layouts and structural engineering, elevator installation, tree sales/leasing/planting, changes in green space topography, installation of landscape irrigation systems, and landscape maintenance work[42](index=42&type=chunk) - The Group typically identifies business opportunities for property engineering and landscaping services while providing daily on-site property management services to understand customer needs[42](index=42&type=chunk) [Leasing Services for Investment Properties](index=16&type=section&id=Leasing%20Services%20for%20Investment%20Properties) To generate recurring income, the Group acquires and/or leases commercial properties in Jinan, Shandong Province, holding 35 self-owned and 4 leased investment properties as of June 30, 2025 - To create a recurring revenue stream, the Group acquires and/or leases certain commercial properties located in Jinan, Shandong Province[43](index=43&type=chunk) - As of June 30, 2025, the Group owned **35 self-owned investment properties** and **4 leased investment properties**[43](index=43&type=chunk) [Other Services](index=16&type=section&id=Other%20Services) Other services primarily encompass intermediary services for patient and postpartum care, along with the sale of proprietary software support systems and routine server maintenance - Other services primarily include intermediary services for patient care and postpartum care services, as well as the sale of software support systems developed by the Group and routine server maintenance services[44](index=44&type=chunk) [Future Prospects](index=17&type=section&id=Future%20Prospects) The company will adhere to a strategy of 'deepening core strengths, expanding growth channels, and innovating smart services,' planning to further expand into key cities, enhance hospital property management, and develop value-added services through M&A and partnerships, while leveraging technology to improve service quality, with listing seen as a way to boost corporate image and financing capabilities - The Group will adhere to the strategic pillars of "deepening core strengths, expanding growth channels, and innovating smart services"[45](index=45&type=chunk) - Future plans include: further penetration into key cities (such as the Yangtze River Delta and Pearl River Delta), deepening hospital property management services and developing value-added services, and leveraging technology to enhance hospital property management levels[45](index=45&type=chunk) - The Board believes that the public listing has enhanced the corporate image, brand awareness, market reputation, and provided a broader capital market for future financing[46](index=46&type=chunk) [Financial Performance Analysis](index=18&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed analysis of the company's financial performance during the reporting period, including changes and drivers for key metrics such as revenue, costs, gross profit, various expenses, associate performance, income tax, and net profit [Revenue](index=18&type=section&id=Revenue) Total revenue increased by 8.3% to RMB 441.4 million, primarily driven by a 9.5% growth in property management services, with hospital and commercial properties showing significant contributions Revenue Breakdown by Service Type | Service Type | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 415,758 | 94.2 | 379,581 | 93.2 | 9.5 | | Property Engineering and Landscaping Services | 16,089 | 3.6 | 6,876 | 1.7 | 134.0 | | Leasing Services for Investment Properties | 8,298 | 1.9 | 13,576 | 3.3 | (38.9) | | Other Services | 1,242 | 0.3 | 7,442 | 1.8 | (83.3) | | **Total** | **441,387** | **100.0** | **407,475** | **100.0** | **8.3** | - Total revenue increased by **8.3%** to **RMB 441.4 million**, primarily attributable to the growth in property management services revenue[48](index=48&type=chunk) Property Management Services Revenue Breakdown by Managed Property Type | Property Type | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hospitals | 196,601 | 47.3 | 184,789 | 48.7 | 6.4 | | Public Properties | 120,944 | 29.1 | 121,299 | 32.0 | (0.3) | | Commercial and Other Non-Residential Properties | 73,325 | 17.6 | 50,405 | 13.3 | 45.5 | | Residential Properties | 24,888 | 6.0 | 23,088 | 6.1 | 7.8 | | **Total** | **415,758** | **100** | **379,581** | **100** | **9.5** | [Cost of Services](index=19&type=section&id=Cost%20of%20Services) Cost of services increased by 9.5% to RMB 379.0 million, aligning with revenue growth due to the deployment of frontline staff and engagement of subcontractors for new property management projects - Cost of services increased by **9.5%** from **RMB 346.2 million** to **RMB 379.0 million**, primarily due to the deployment of frontline staff and engagement of subcontractors for new property management projects, consistent with revenue growth[50](index=50&type=chunk) [Gross Profit and Gross Profit Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit increased by 1.9% to RMB 62.4 million, while the overall gross profit margin decreased by 0.9 percentage points to 14.1%, mainly due to a decline in property management services' margin - Gross profit increased by **1.9%** from **RMB 61.3 million** to **RMB 62.4 million**[51](index=51&type=chunk) Gross Profit and Gross Profit Margin Breakdown by Service Type | Service Type | H1 2025 Gross Profit (RMB thousand) | H1 2025 Gross Profit Margin (%) | H1 2024 Gross Profit (RMB thousand) | H1 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 55,681 | 13.4 | 53,784 | 14.2 | | Property Engineering and Landscaping Services | 3,331 | 20.7 | 1,007 | 14.6 | | Leasing Services for Investment Properties | 3,270 | 39.4 | 5,146 | 37.9 | | Other Services | 149 | 12.0 | 1,315 | 17.7 | | **Total** | **62,431** | **14.1** | **61,252** | **15.0** | - The overall gross profit margin decreased by **0.9 percentage points** to **14.1%**, primarily due to a decrease in the gross profit margin of property management services[52](index=52&type=chunk) - The gross profit margin for property engineering and landscaping services increased by **6.1 percentage points**, mainly attributable to higher gross profit margins from new large-scale engineering project contracts during the period[53](index=53&type=chunk) [Other Income and Gains and Expenses, Net](index=21&type=section&id=Other%20Income%20and%20Gains%20and%20Expenses,%20Net) Other income and gains and expenses, net, significantly increased by 95.2% to RMB 5.7 million, primarily driven by a substantial rise in government grants, partially offset by foreign exchange losses - Other income and gains and expenses, net, increased by **95.2%** from **RMB 2.9 million** to **RMB 5.7 million**, primarily due to an increase in government grants of **RMB 4.9 million**, partially offset by foreign exchange losses[54](index=54&type=chunk) [Selling and Distribution Expenses](index=21&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased to RMB 735 thousand, primarily due to a reduction in sales expenses - Selling and distribution expenses decreased from **RMB 1.0 million** to **RMB 735 thousand**, mainly due to a reduction in sales expenses[55](index=55&type=chunk) [Administrative Expenses](index=21&type=section&id=Administrative%20Expenses) Administrative expenses increased to RMB 35.8 million, mainly attributed to the write-off of RMB 1.2 million in trade receivables - Administrative expenses increased from **RMB 34.4 million** to **RMB 35.8 million**, primarily due to the write-off of **RMB 1.2 million** in trade receivables[56](index=56&type=chunk) [Finance Costs](index=21&type=section&id=Finance%20Costs) Finance costs increased by 4.9% to RMB 4.5 million during the reporting period - Finance costs increased by **4.9%** from **RMB 4.2 million** to **RMB 4.5 million**[57](index=57&type=chunk) [Share of Profit/(Loss) of an Associate](index=21&type=section&id=Share%20of%20Profit%2F%28Loss%29%20of%20an%20Associate) The share of profit from an associate significantly increased by 582.1% to a profit of RMB 563 thousand, compared to a loss of RMB 117 thousand in the prior period - Share of profit of an associate increased by **582.1%** from a loss of **RMB 117 thousand** in H1 2024 to a profit of **RMB 563 thousand** in H1 2025[58](index=58&type=chunk) [Income Tax Expense and Effective Tax Rate](index=21&type=section&id=Income%20Tax%20Expense%20and%20Effective%20Tax%20Rate) Income tax expense decreased by 12.6% to RMB 6.0 million, resulting in a lower effective tax rate of 21.7% for the period - Income tax expense decreased by **12.6%** from **RMB 6.9 million** to **RMB 6.0 million**[59](index=59&type=chunk) - The effective tax rate decreased from **28.2%** in H1 2024 to **21.7%** in H1 2025[60](index=60&type=chunk) [Profit for the Period and Net Profit Margin](index=22&type=section&id=Profit%20for%20the%20Period%20and%20Net%20Profit%20Margin) Net profit increased by 24.4% to RMB 21.7 million, leading to an improved net profit margin of 4.9% for the period - Net profit increased by **24.4%** from **RMB 17.5 million** to **RMB 21.7 million**[61](index=61&type=chunk) - The net profit margin increased from **4.3%** in H1 2024 to **4.9%** in H1 2025[61](index=61&type=chunk) [Analysis of Statement of Financial Position Items](index=22&type=section&id=Analysis%20of%20Statement%20of%20Financial%20Position%20Items) This section analyzes changes in key statement of financial position items at the end of the reporting period, including property and equipment, investment properties, investment in an associate, trade receivables, prepayments and other receivables, trade payables, and other payables and accrued charges [Property and Equipment](index=22&type=section&id=Property%20and%20Equipment) Property and equipment decreased by RMB 835 thousand to RMB 20.4 million, primarily due to depreciation and disposals, partially offset by new purchases - Property and equipment amounted to **RMB 20.4 million**, a decrease of **RMB 835 thousand** compared to December 31, 2024[62](index=62&type=chunk) - The decrease was primarily due to purchases of property and equipment of **RMB 2.1 million**, depreciation of **RMB 2.7 million**, and disposals of property and equipment of **RMB 0.6 million**[62](index=62&type=chunk) [Investment Properties](index=22&type=section&id=Investment%20Properties) Investment properties decreased to RMB 63.6 million, mainly due to depreciation of specific properties and a reduction in re-recognition amounts - Investment properties decreased from **RMB 74.5 million** as of December 31, 2024, to **RMB 63.6 million** as of June 30, 2025[63](index=63&type=chunk) - The decrease was primarily due to depreciation of **RMB 6.0 million** for Qiantai Building, **RMB 2.5 million** for Qilu Zhimeng Building, and a reduction in the re-recognition amount of investment properties for Qianning Building of **RMB 1.5 million**[63](index=63&type=chunk) [Investment in an Associate](index=22&type=section&id=Investment%20in%20an%20Associate) Investment in an associate, Tianjin Tianfu Property Management Co Ltd, increased to RMB 140.8 million, primarily due to its profit contribution and equity-accounted investment - Investment in an associate (Tianjin Tianfu Property Management Co Ltd) increased from **RMB 140.2 million** as of December 31, 2024, to **RMB 140.8 million** as of June 30, 2025[64](index=64&type=chunk) - The increase was primarily due to the profit of Tianjin Tianfu and an increase in investment calculated on an equity basis of **RMB 0.6 million**[64](index=64&type=chunk) [Trade Receivables](index=23&type=section&id=Trade%20Receivables) Trade receivables increased by 19.2% to RMB 308.5 million, driven by revenue growth and extended credit terms for government and public institution clients - Trade receivables amounted to **RMB 308.5 million**, an increase of **RMB 49.6 million** or **19.2%** compared to December 31, 2024[65](index=65&type=chunk) - The increase was primarily attributable to the growth in revenue and scale of business operations, as well as longer credit terms required by government and public institution clients compared to the same period in 2024[65](index=65&type=chunk) [Prepayments and Other Receivables](index=23&type=section&id=Prepayments%20and%20Other%20Receivables) Prepayments and other receivables increased to RMB 55.4 million, primarily due to higher prepayments, other receivables, and other current assets - Prepayments and other receivables increased from **RMB 25.7 million** as of December 31, 2024, to **RMB 55.4 million** as of June 30, 2025[66](index=66&type=chunk) - The increase was primarily due to an increase in prepayments of **RMB 23.4 million**, an increase in other receivables of **RMB 4.1 million**, and an increase in other current assets of **RMB 2.2 million**[66](index=66&type=chunk) [Trade Payables](index=23&type=section&id=Trade%20Payables) Trade payables decreased by 2.8% to RMB 82.8 million as of June 30, 2025 - Trade payables amounted to **RMB 82.8 million**, a decrease of **RMB 2.4 million** or **2.8%** compared to December 31, 2024[67](index=67&type=chunk) [Other Payables and Accrued Charges](index=23&type=section&id=Other%20Payables%20and%20Accrued%20Charges) Other payables and accrued charges decreased to RMB 119.5 million, mainly due to a reduction in salaries, overtime, and bonuses during the first half of 2025 - Other payables and accrued charges decreased from **RMB 122.4 million** as of December 31, 2024, to **RMB 119.5 million** as of June 30, 2025[68](index=68&type=chunk) - The decrease was primarily due to a reduction in salaries, overtime, and bonuses of **RMB 2.9 million** in H1 2025[68](index=68&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=23&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, cash and cash equivalents increased to RMB 188.1 million, total interest-bearing bank loans rose to RMB 183.9 million, leading to a gearing ratio of 49.0%, while the current ratio remained healthy at 1.8 - As of June 30, 2025, cash and cash equivalents amounted to **RMB 188.1 million**, an increase from **RMB 166.8 million** as of December 31, 2024[69](index=69&type=chunk) - Total interest-bearing bank loans and other borrowings increased from **RMB 109.3 million** as of December 31, 2024, to **RMB 183.9 million** as of June 30, 2025[70](index=70&type=chunk) Liquidity and Capital Structure Indicators | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 49.0% | 30.9% | | Current Ratio | 1.8 | 1.7 | [Capital Expenditure and Commitments](index=24&type=section&id=Capital%20Expenditure%20and%20Commitments) Capital expenditure for the reporting period was RMB 2.1 million, primarily for property and equipment and investment properties, with no capital commitments at period-end - Total capital expenditure for the six months ended June 30, 2025, was **RMB 2.1 million**, primarily comprising expenditure on property and equipment and investment properties[72](index=72&type=chunk) - As of June 30, 2025, the Group had no capital commitments[73](index=73&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[74](index=74&type=chunk) [Cash Flows](index=25&type=section&id=Cash%20Flows) During the reporting period, net cash used in operating activities was RMB 45.4 million, mainly due to increased trade and prepayments, net cash used in investing activities was RMB 1.9 million, and net cash from financing activities was RMB 68.8 million, primarily due to increased interest-bearing bank borrowings - Net cash used in operating activities was **RMB 45.4 million**, primarily due to increases in trade receivables and prepayments and other receivables[75](index=75&type=chunk) - Net cash used in investing activities was **RMB 1.9 million**, mainly due to the purchase of financial assets at fair value through profit or loss[75](index=75&type=chunk) - Net cash from financing activities was **RMB 68.8 million**, primarily due to an increase in interest-bearing bank borrowings[75](index=75&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain certificates of deposit and properties were pledged as collateral for bank loans, totaling approximately RMB 34 million in certificates of deposit and RMB 4 million in net value of properties - **RMB 4.0 million** in certificates of deposit were pledged as collateral for bank loans of **RMB 18.0 million**[76](index=76&type=chunk) - **RMB 30.0 million** in certificates of deposit were pledged as collateral for bank loans of **RMB 27.0 million**[76](index=76&type=chunk) - Properties with an original value of **RMB 6.0 million** and a net value of **RMB 4.0 million** were pledged as collateral for bank loans of **RMB 20.0 million**[76](index=76&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The company primarily operates in China, denominated in RMB, with no significant foreign currency risk except for minor foreign currency cash holdings, and currently does not engage in hedging activities but continuously monitors to protect cash value - The Group primarily operates in China, with its functional currency being RMB[77](index=77&type=chunk) - The Group's business operations do not have significant foreign currency risk, except for cash and cash equivalents denominated in foreign currencies[77](index=77&type=chunk) - The Group currently does not engage in hedging activities aimed at or intended to manage foreign exchange risk[77](index=77&type=chunk) [Treasury Policy](index=26&type=section&id=Treasury%20Policy) The company adopts a prudent financial management approach, maintaining a healthy liquidity position and closely monitoring liquidity risk to meet funding requirements - The Group has adopted a prudent financial management approach for its treasury policy, thus maintaining a healthy liquidity position during the reporting period[78](index=78&type=chunk) - The Board closely monitors the Group's liquidity position to ensure it can meet its funding needs from time to time[78](index=78&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=26&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) During the reporting period, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures, nor did it hold any material investments representing 5% or more of total assets - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[79](index=79&type=chunk) - As of June 30, 2025, the Group did not hold any material investments (including material investments representing 5% or more of the Group's total assets)[79](index=79&type=chunk) [Future Plans for Material Investments](index=26&type=section&id=Future%20Plans%20for%20Material%20Investments) The company plans to use net proceeds from the global offering to acquire property management companies and may explore other business and investment opportunities to enhance long-term competitiveness - The Group intends to use part of the net proceeds from the global offering to acquire property management companies[80](index=80&type=chunk) - The Group may also explore business and investment opportunities in various business areas and consider asset or business acquisitions, reorganizations, or diversification to enhance long-term competitiveness[80](index=80&type=chunk) [Use of Proceeds from Global Offering](index=27&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds from the global offering totaled HKD 89.9 million, allocated for strategic investments and acquisitions (54.3%), information technology development (28.0%), and enhancing employee incentive mechanisms (17.7%), with HKD 67.9 million unutilized as of June 30, 2025, expected to be fully utilized by the end of 2025 - The net proceeds from the global offering amounted to **HKD 89.9 million**[81](index=81&type=chunk) Use and Allocation of Proceeds from Global Offering | Use | Share (%) | Planned Allocation (HKD million) | Unutilized Amount as of June 30, 2025 (HKD million) | Expected Full Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Strategic investments and acquisitions to expand property management business | 54.3 | 48.8 | 48.8 | By end of 2025 | | Development, enhancement, and implementation of information technology | 28.0 | 25.2 | 14.4 | By end of 2025 | | Improvement of employee incentive mechanisms to attract, cultivate, and retain talent | 17.7 | 15.9 | 4.7 | By end of 2025 | | **Total** | **100.0** | **89.9** | **67.9** | | - The unutilized net proceeds are currently held as bank deposits and are intended to be used according to the proposed allocation in the prospectus[81](index=81&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company employed 12,178 staff, with total employee costs decreasing to RMB 227 million, mainly due to changes in personnel structure and adjustments to social insurance contribution bases, and remunerates employees through fixed salaries, allowances, and discretionary bonuses - As of June 30, 2025, the Group employed **12,178 employees** (December 31, 2024: 11,682 employees)[82](index=82&type=chunk) - For the six months ended June 30, 2025, total employee costs were **RMB 227 million** (H1 2024: RMB 234.6 million), with the decrease primarily due to changes in personnel structure and adjustments to social insurance contribution bases[83](index=83&type=chunk) - The remuneration policy includes fixed salaries, other allowances, and discretionary bonuses based on performance[82](index=82&type=chunk) [Interim Dividends](index=28&type=section&id=Interim%20Dividends) The Board has resolved not to declare any interim dividend for the reporting period - The Board has resolved not to declare any interim dividend for the reporting period[84](index=84&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of Appendix C1 to the Listing Rules on Corporate Governance Code during the reporting period - The company has adopted and complied with all applicable code provisions under the Corporate Governance Code in Appendix C1 to the Listing Rules for securities on the Main Board of the Stock Exchange[85](index=85&type=chunk) [Audit Committee and Review of Interim Results](index=28&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee has reviewed and approved the unaudited interim results for the six months ended June 30, 2025, deeming them compliant with applicable accounting standards, Listing Rules, and other legal requirements, with adequate disclosures made - The Audit Committee comprises two independent non-executive directors and one non-executive director, with Ms Wang Yushuang as the chairperson[86](index=86&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and considers them to be in compliance with applicable accounting standards, the Listing Rules, and other applicable legal requirements, with adequate disclosures made[86](index=86&type=chunk) [Standard Code for Securities Transactions](index=29&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company has adopted the Standard Code as the code of conduct for securities transactions by directors, senior management, and relevant employees, confirming all directors' compliance during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[87](index=87&type=chunk) - All directors have confirmed compliance with the Standard Code during the reporting period and up to the date of this announcement[87](index=87&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers additional disclosures including material legal proceedings, public float, changes in directors' information, post-reporting period events, and publication details [Material Legal Proceedings](index=29&type=section&id=Material%20Legal%20Proceedings) During the reporting period and up to the date of this announcement, the company was not involved in any material legal proceedings or arbitration - During the reporting period and up to the date of this announcement, the company was not involved in any material legal proceedings or arbitration[88](index=88&type=chunk) [Public Float](index=29&type=section&id=Public%20Float) During the reporting period, the company maintained a sufficient public float of 25% of its total issued share capital as required by the Listing Rules - The company has maintained a sufficient public float of **25% of its total issued share capital** as required by the Listing Rules[89](index=89&type=chunk) [Changes in Directors' Information](index=30&type=section&id=Changes%20in%20Directors'%20Information) No changes in directors' information requiring disclosure have occurred since the publication of the 2024 annual report - No changes in information regarding any director requiring disclosure under paragraphs (a) to (e) and (g) of Rule 13.51(2) of the Listing Rules have occurred since the publication of the 2024 annual report up to the date of this announcement[90](index=90&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) No other significant events have occurred from June 30, 2025, up to the date of this announcement - No other significant events have occurred for the Group from June 30, 2025, up to the date of this announcement[91](index=91&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period and up to the date of this announcement, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held - During the reporting period and up to the date of this announcement, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[92](index=92&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[92](index=92&type=chunk) [Publication of Interim Results Announcement and Interim Report on HKEX and Company Website](index=30&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) The interim results announcement has been published on the HKEX and company websites, and the interim report will be promptly dispatched to shareholders and published - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.sdrhwy.cn)[93](index=93&type=chunk) - The company's interim report for the reporting period will be promptly dispatched to the company's shareholders and published on the HKEX and company websites[93](index=93&type=chunk) [Board Information](index=30&type=section&id=Board%20Information) As of the date of this announcement, the Board comprises two executive directors, three non-executive directors, and three independent non-executive directors - As of the date of this announcement, Mr Yang Liqun and Mr Fei Zhongli are executive directors[95](index=95&type=chunk) - Mr Luan Tao, Mr Luan Hangqian, and Mr Cheng Xin are non-executive directors[95](index=95&type=chunk) - Ms Wang Yushuang, Ms Bao Ying, and Ms He Murong are independent non-executive directors[95](index=95&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 CHINA ZHESHANG BANK CO., LTD. 浙商銀行股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2016） 2025年中期業績公告 浙商銀行股份有限公司（「本行」）董事會（「董事會」）謹此宣佈本行截至2025年6月 30日止6個月之未經審計中期業績。本公告列載本行2025年中期報告全文，並符 合香港聯合交易所有限公司（「聯交所」）證券上市規則中有關中期業績初步公告附 載的資料之要求。 發佈中期業績公告及中期報告 本業績公告的中英文版本可在本行網站(www.czbank.com) 和聯交所網站 (www.hkex.com.hk)查閱。在對中英文文本的理解上發生歧義時，以中文文本為 準。 本行2025年中期報告將會隨後寄發予本行H股股東（如要求），並可於其時在本行 網站(www.czbank.com)及聯交所網站(www.hkex.com.hk)閱覽。 承董事會命 浙 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 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。 安徽皖通高速公路股份有限公司 ANHUI EXPRESSWAY COMPANY LIMITED （於中華人民共和國註冊成立的股份有限公司） （股份編號： 995） 二Ｏ二五年中期業績公告 安徽皖通高速公路股份有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及 其附屬公司（「本集團」）截至二Ｏ二五年六月三十日止六個月（「報告期內」）的中期 業績。此份中期業績所載財務報表是未經審計的，但經本公司董事會審核委員會審 議確認。 – 1 – 本集團按照香港財務報告準則會計準則編製的未經審計之截至二Ｏ二五年六月三十 日止六個月簡明合併財務數據及二Ｏ二四年同期的未經審計比較數字如下： 一. 財務摘要 （除另有說明外，所有金額均以人民幣千元為單位） 中期簡明合併利潤表 截至二零二五年六月三十日止六個月 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零 ...

[Definitions](index=3&type=section&id=Definitions) [Definition Content](index=3&type=section&id=Definition%20Content) This section defines key terms and abbreviations used in the report, ensuring clarity and consistency - The report defines several key terms, including "Expressway Business" (the business of maintaining, operating, and managing the Ji-He Expressway, De-Shang Expressway, and Xin-Nan Expressway) and "Reconstruction and Expansion Project" (the Ji-He Expressway Reconstruction and Expansion Project), providing a foundation for understanding the company's business and financial reports[5](index=5&type=chunk)[7](index=7&type=chunk) [Corporate Information](index=6&type=section&id=Corporate%20Information) [Company Basic Information](index=6&type=section&id=Company%20Basic%20Information) This section lists the company's basic information, including its registered name, legal representative, board members, and key advisors - The company's legal representative is Mr Wei Yong, its H-share stock code is 01576, and its website is www.qlecl.com[10](index=10&type=chunk)[19](index=19&type=chunk) - The Board of Directors includes executive, non-executive, and independent non-executive directors, with Audit, Remuneration and Appraisal, Nomination, and Strategy Committees[14](index=14&type=chunk)[15](index=15&type=chunk) - The international auditor is SHINEWING (HK) CPA Limited, and the domestic auditor is ShineWing Certified Public Accountants (Special General Partnership)[18](index=18&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Review](index=8&type=section&id=Financial%20Review) Total revenue decreased significantly due to lower construction income, while expressway business revenue and gross margin improved markedly Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB'000) | H1 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,067,397 | 2,807,598 | -61.98 | | Expressway business revenue | 822,091 | 483,503 | +70.03 | | Construction and other business revenue | 242,931 | 2,323,103 | -89.54 | | Rental income | 2,375 | 992 | +139.42 | | Cost of sales | 651,773 | 2,451,324 | -73.41 | | Gross profit | 415,624 | 356,274 | +16.66 | | Gross profit margin | 38.94% | 12.69% | +26.25 p.p. | | Other income and gains | 41,836 | 53,580 | -21.92 | | Administrative expenses | 49,702 | 38,840 | +28.00 | | Finance costs | 141,346 | 34,082 | +314.72 | | Net profit attributable to the parent company | 200,408 | 248,588 | -19.38 | | EBITDA | 732,883 | 482,363 | +51.93 | - Following the opening of the Ji-He Expressway Reconstruction and Expansion Project, **toll revenue surged by 165.46%** and traffic volume increased by 146.15%, while the De-Shang and Xin-Nan Expressways saw declines due to traffic diversion[22](index=22&type=chunk)[23](index=23&type=chunk) - **Finance costs increased significantly by 314.72%**, primarily due to the capitalization of interest on loans for the Ji-He Expressway Reconstruction and Expansion Project ceasing[32](index=32&type=chunk) - **EBITDA grew by 51.93%**, mainly driven by the increase in toll fees from the Ji-He Expressway[36](index=36&type=chunk) - As of June 30, 2025, the Group's total loans amounted to **RMB 11,350,908 thousand**, with a capital-to-liability ratio of 64.54%[38](index=38&type=chunk) - During the reporting period, the Group had a total of 673 employees, with total staff costs of approximately **RMB 92,168 thousand**[41](index=41&type=chunk) [Business Review](index=12&type=section&id=Business%20Review) The Group's core business remains expressway operations, with significant growth in traffic and toll revenue from the expanded Ji-He Expressway - The Ji-He Expressway Reconstruction and Expansion Project's full reopening led to a substantial increase in traffic and toll revenue, with average daily traffic reaching **76,800 vehicles** and toll revenue of approximately **RMB 610,931 thousand**, a **165.46% YoY increase**[46](index=46&type=chunk)[47](index=47&type=chunk) - Toll revenue and traffic volume for the De-Shang Expressway (Liaocheng to Fanxian section) and Xin-Nan Expressway decreased due to traffic diversion from the reopened Ji-He Expressway and national highways[46](index=46&type=chunk)[51](index=51&type=chunk) - Construction business revenue, mainly from the Ji-He Expressway project, was approximately **RMB 27,982 thousand** during the period, with industrial product sales also included in this segment[56](index=56&type=chunk) - Rental income, primarily from advertising billboards along the Ji-He Expressway, **rose by 139.42% YoY** to RMB 2,375 thousand[57](index=57&type=chunk) [Expressway Business](index=13&type=section&id=Expressway%20Business) The expanded Ji-He Expressway drove significant growth, while other expressways experienced declines due to network changes and traffic diversion Average Daily Traffic Volume During the Reporting Period | Expressway | Average Daily Traffic Volume (vehicles) | | :--- | :--- | | Ji-He Expressway | 76,810 | | De-Shang Expressway (Liaocheng to Fanxian Section) | 46,718 | | Xin-Nan Expressway | 8,228 | - A new trial toll standard for the reconstructed section of the Ji-He Expressway has been in effect since December 20, 2024, and is valid until December 19, 2026[54](index=54&type=chunk) [Construction and Other Businesses](index=15&type=section&id=Construction%20and%20Other%20Businesses) This segment's revenue includes construction projects, engineering services, and trade of industrial products, with rental income from advertising - During the reporting period, revenue from construction and industrial product sales was approximately **RMB 242,931 thousand**, with the Ji-He Expressway project contributing about **RMB 27,982 thousand** in construction revenue[56](index=56&type=chunk) - There are 69 operational advertising billboards along the Ji-He Expressway, and while rental income is a small portion of total revenue, the company is actively cultivating new growth areas[57](index=57&type=chunk) [Prospects](index=15&type=section&id=Prospects) The company will focus on enhancing its core business, accelerating industrial transformation, and improving management to achieve high-quality growth - In its core business, the company is expanding "Expressway+" value-added services, leading to significant revenue recovery for the Ji-He Expressway post-expansion[58](index=58&type=chunk) - In transformation, the wind power hybrid tower project has achieved a full-chain breakthrough, with the Jining base entering mass production and order delivery[58](index=58&type=chunk) - In market expansion, the transportation materials and construction engineering sectors won bids for central enterprise projects, successfully entering markets in Xinjiang, Jiangsu, Henan, Shanxi, and Hunan[58](index=58&type=chunk) - In management, the company promoted digital transformation, with subsidiary Qilu Expressway Assembly recognized as a provincial "specialized, refined, distinctive, and innovative" SME[59](index=59&type=chunk) - The strategy for the second half of the year includes enhancing core business efficiency, accelerating industrial transformation, upgrading development quality, and boosting management vitality[60](index=60&type=chunk)[62](index=62&type=chunk) [Events After the Reporting Period](index=17&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this report, the Group has no material events after the reporting period to disclose - The Group had no material events to disclose after the reporting period as of the date of this report[63](index=63&type=chunk) [Publication and Despatch of Interim Report](index=17&type=section&id=Publication%20and%20Despatch%20of%20Interim%20Report) This interim report is available on the HKEXnews and company websites and will be sent to shareholders who have requested a printed copy - This report has been published on the HKEXnews website (www.hkexnews.hk) and the Company's website (www.qlecl.com)[64](index=64&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) [Share Capital](index=18&type=section&id=Share%20Capital) As of June 30, 2025, the company's total issued share capital was RMB 2 billion, comprising 2 billion H shares of RMB 1.00 each - As of June 30, 2025, the company's total issued share capital was **RMB 2 billion**, consisting of 2 billion H shares[66](index=66&type=chunk) [Interests and Short Positions of Substantial Shareholders and Other Persons in the Shares of the Company](index=18&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20the%20Shares%20of%20the%20Company) This section discloses the interests and short positions of substantial shareholders in the company's shares as of June 30, 2025 Substantial Shareholders' Holdings (as of June 30, 2025) | Shareholder Name | Number of Shares Held | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | | Shandong Hi-Speed | 778,500,000 | 38.93% | | COSCO SHIPPING (Hong Kong) Co., Limited | 600,000,000 | 30.00% | | Jiaxuan Holdings Limited | 173,919,000 | 8.70% | | Guoneng Power Technology Engineering Co., Ltd. | 121,500,000 | 6.08% | | CITIC-Prudential Life Insurance Company Limited | 103,750,000 | 5.19% | - Shandong Hi-Speed Group indirectly holds approximately **38.93%** of the company's shares through its subsidiary Shandong Hi-Speed, making it the controlling shareholder[9](index=9&type=chunk)[67](index=67&type=chunk)[70](index=70&type=chunk) [Interests and Short Positions of Directors, Supervisors and Chief Executive in the Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=20&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive%20in%20the%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, no director, supervisor, or chief executive had any disclosable interests or short positions in the company's securities - As of June 30, 2025, no directors, supervisors, or chief executives of the company had any interests or short positions requiring disclosure under the Securities and Futures Ordinance[71](index=71&type=chunk) [Repurchase, Sale and Redemption of the Company's Listed Securities](index=20&type=section&id=Repurchase%2C%20Sale%20and%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries repurchased, sold, or redeemed any of the company's listed securities - During the reporting period, the company did not engage in any repurchase, sale, or redemption of its listed securities and held no treasury shares[72](index=72&type=chunk) [Continuing Connected Transactions during the Reporting Period](index=20&type=section&id=Continuing%20Connected%20Transactions%20during%20the%20Reporting%20Period) This section discloses the actual transaction amounts of continuing connected transactions with Shandong Hi-Speed Group during the period Continuing Connected Transactions in H1 2025 | Continuing Connected Transaction | Actual Transaction Amount for the Period (RMB'000) | 2025 Annual Cap (RMB'000) | | :--- | :--- | :--- | | Ji-He Expressway Land Lease Rent | 2,310 | 2,310 | | Ji-He Expressway Property Lease Rent | 450 | 450 | | Service fees paid under Comprehensive Services Framework Agreement | 109,731 | 600,000 | | Maximum daily deposit balance under Financial Services Framework Agreement | 157,300 | 1,000,000 | | Daily cash balance for Cross-border Centralized Fund Operation Management | 90,000 | 140,000 | | Revenue from services provided under Service Provision Framework Agreement | 27,200 | 180,000 | | Procurement fees paid under Comprehensive Procurement Framework Agreement | 12,760 | 120,000 | | Sales revenue under Comprehensive Sales Framework Agreement | 68,650 | 500,000 | [Changes in Directors, Supervisors and Senior Management](index=21&type=section&id=Changes%20in%20Directors%2C%20Supervisors%20and%20Senior%20Management) Several changes occurred among the company's directors, supervisors, and senior management due to work adjustments and retirement - Mr Su Xiaodong, Mr Peng Hui, Mr Liu Qiang, and Mr Wang Shen'an resigned from their respective positions due to retirement or work adjustments[75](index=75&type=chunk) - Mr Duan Peng was appointed as General Manager and Executive Director, while Mr Ren Wei, Mr Gao Yongjun, and Mr Chen Xiulin were appointed to the Board[75](index=75&type=chunk)[76](index=76&type=chunk) - After the reporting period, Mr Kang Jian resigned as a Non-executive Director, Mr Wang Zhenjiang resigned as Chairman and Executive Director, and Mr Wei Yong was appointed as Executive Director, Chairman, Legal Representative, and Authorized Representative[78](index=78&type=chunk)[79](index=79&type=chunk) [Material Litigation and Arbitration](index=22&type=section&id=Material%20Litigation%20and%20Arbitration) During the reporting period, the Group was not involved in any material litigation, arbitration, or claims - The Group was not involved in any material litigation, arbitration, or claims during the reporting period[82](index=82&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The Group is committed to high standards of corporate governance and has complied with the applicable provisions of the Corporate Governance Code - The Board is responsible for performing corporate governance duties, including developing policies, reviewing director training, and monitoring legal compliance[83](index=83&type=chunk) - The company has complied with the applicable code provisions set out in Part 2 of the Corporate Governance Code throughout the reporting period[83](index=83&type=chunk) [Compliance with the Model Code](index=23&type=section&id=Compliance%20with%20the%20Model%20Code) All directors and supervisors have confirmed their compliance with the required standards for securities transactions set out in the Model Code - All directors and supervisors have complied with the required standards for securities transactions by directors as set out in the Model Code during the reporting period[86](index=86&type=chunk) [Interim Dividend](index=23&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025[87](index=87&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The company's Audit Committee has reviewed the Group's unaudited interim financial report for the six months ended June 30, 2025 - The Audit Committee has reviewed the Group's unaudited interim financial report for the six months ended June 30, 2025[88](index=88&type=chunk) [Review Report on the Condensed Consolidated Financial Statements](index=24&type=section&id=Review%20Report%20on%20the%20Condensed%20Consolidated%20Financial%20Statements) [Conclusion of the Review Report](index=24&type=section&id=Conclusion%20of%20the%20Review%20Report) The auditor concluded that nothing has come to their attention that causes them to believe the financial statements are not prepared in accordance with HKAS 34 - The auditor, SHINEWING (HK) CPA Limited, issued an unmodified conclusion on the condensed consolidated financial statements[91](index=91&type=chunk)[93](index=93&type=chunk) - The report notes that the comparative financial information for 2024 was reviewed by another auditor who issued an unmodified conclusion, and the annual consolidated financial statements for 2024 were audited by the same auditor who issued an unmodified opinion[92](index=92&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=25&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Overview of Profit or Loss and Comprehensive Income](index=25&type=section&id=Overview%20of%20Profit%20or%20Loss%20and%20Comprehensive%20Income) Revenue decreased by 61.98% year-on-year, while gross profit grew by 16.66%, with basic and diluted earnings per share at RMB 0.10 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2025) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 1,067,397 | 2,807,598 | | Cost of sales | (651,773) | (2,451,324) | | Gross profit | 415,624 | 356,274 | | Other income and gains | 41,836 | 53,580 | | Administrative expenses | (49,702) | (38,840) | | Finance costs | (141,346) | (34,082) | | Profit before tax | 265,376 | 334,469 | | Income tax expense | (67,172) | (81,604) | | Profit and total comprehensive income for the period | 198,204 | 252,865 | | Profit attributable to owners of the Company | 200,408 | 248,588 | | Earnings per share (RMB) | 0.10 | 0.12 | [Condensed Consolidated Statement of Financial Position](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Overview of Financial Position](index=26&type=section&id=Overview%20of%20Financial%20Position) Non-current assets increased slightly while current assets and liabilities decreased, resulting in a reduction in net current liabilities Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Non-current assets | 19,052,392 | 19,013,898 | | Current assets | 1,916,198 | 2,061,720 | | Current liabilities | 4,021,632 | 4,851,534 | | Net current liabilities | (2,105,434) | (2,789,814) | | Total assets less current liabilities | 16,946,958 | 16,224,084 | | Non-current liabilities | 10,723,267 | 9,999,458 | | Net assets | 6,223,691 | 6,224,626 | | Equity attributable to owners of the Company | 4,083,347 | 4,095,693 | | Total equity | 6,223,691 | 6,224,626 | - Intangible assets (mainly toll rights) remain the largest non-current asset, valued at **RMB 16,283,665 thousand** as of June 30, 2025[96](index=96&type=chunk) - Trade and bills payables decreased significantly from **RMB 3,379,127 thousand** on December 31, 2024, to **RMB 2,302,197 thousand** on June 30, 2025[96](index=96&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Overview of Changes in Equity](index=28&type=section&id=Overview%20of%20Changes%20in%20Equity) Equity attributable to owners of the company decreased slightly, mainly due to profit for the period, interest payments on perpetual bonds, and declared final dividends Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | June 30, 2025 (RMB'000) | June 30, 2024 (RMB'000) | | :--- | :--- | :--- | | Equity attributable to owners of the Company at beginning of period | 4,095,693 | 3,936,895 | | Profit for the period | 200,408 | 248,588 | | Interest paid on perpetual bonds | (23,639) | (23,692) | | Final dividend declared | (200,000) | (300,000) | | Equity attributable to owners of the Company at end of period | 4,083,347 | 3,872,659 | | Total equity at end of period | 6,223,691 | 5,981,189 | - The declared final dividend for 2024 was **RMB 200,000 thousand**, lower than the **RMB 300,000 thousand** declared for 2023[99](index=99&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=29&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Overview of Cash Flows](index=29&type=section&id=Overview%20of%20Cash%20Flows) Operating activities shifted from a net inflow to an outflow, while cash used in investing activities decreased significantly Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | Activity Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net cash flows (used in) from operating activities | (419,283) | 196,467 | | Net cash flows used in investing activities | (71,872) | (1,537,321) | | Net cash flows from financing activities | 595,125 | 1,919,922 | | Net increase in cash and cash equivalents | 103,970 | 579,068 | | Cash and cash equivalents at end of period | 320,661 | 978,077 | - Net cash flow from operating activities changed from a net inflow of **RMB 196,467 thousand** in the prior period to a net outflow of **RMB 419,283 thousand** in the current period[101](index=101&type=chunk) - Cash outflow from investing activities decreased substantially, mainly because expenditure on property, plant, and equipment and intangible assets dropped from **RMB 2,022,005 thousand** to **RMB 86,416 thousand**[102](index=102&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=31&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) [General Information](index=31&type=section&id=General%20Information) The company was incorporated in China in 2004, listed in Hong Kong in 2018, and its main business is expressway operation and management - The company was registered in China on January 6, 2004, and listed on the Main Board of the Hong Kong Stock Exchange on July 19, 2018[103](index=103&type=chunk) - The toll period for the Ji-He Expressway has been extended by 25 years, from September 25, 2034, to September 25, 2049[103](index=103&type=chunk) [Basis of Preparation](index=31&type=section&id=Basis%20of%20Preparation) The financial statements are prepared in accordance with HKAS 34, and the directors believe the company can continue as a going concern - The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of the Listing Rules[105](index=105&type=chunk) - Despite having net current liabilities, the directors believe the Group has sufficient undrawn bank credit facilities to continue as a going concern[105](index=105&type=chunk) [Accounting Policies](index=32&type=section&id=Accounting%20Policies) The accounting policies adopted are consistent with the 2024 annual financial statements, with no material impact from new HKFRS amendments - The accounting policies adopted in the condensed consolidated financial statements are consistent with those used in the annual consolidated financial statements for the year ended December 31, 2024[106](index=106&type=chunk) - The application of amendments to Hong Kong Financial Reporting Standards during the interim period had no material effect on the Group's financial performance and position[107](index=107&type=chunk) [Operating Segment Information](index=32&type=section&id=Operating%20Segment%20Information) The Group operates as a single reportable segment as all its operations are located in Mainland China - The Group has only one single reportable operating segment, with all operations located in China[108](index=108&type=chunk) - All external revenue is derived from customers in Mainland China, and all non-current assets are located in Mainland China[109](index=109&type=chunk) - During the reporting period, no revenue from a single customer (excluding construction and upgrade service revenue) accounted for 10% or more of the Group's total revenue[110](index=110&type=chunk) [Revenue](index=33&type=section&id=Revenue) The Group's revenue is primarily derived from contracts with customers, including expressway and construction businesses, plus minor rental income Revenue Source Analysis (For the six months ended June 30, 2025) | Revenue Source | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue from contracts with customers | 1,065,022 | 2,806,606 | | Rental income | 2,375 | 992 | | **Total** | **1,067,397** | **2,807,598** | Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30, 2025) | Business Type | Services transferred at a point in time (RMB'000) | Services transferred over time (RMB'000) | Total (RMB'000) | | :--- | :--- | :--- | :--- | | Expressway business | 822,091 | – | 822,091 | | Construction and other businesses | 187,737 | 55,194 | 242,931 | | **Total** | **1,009,828** | **55,194** | **1,065,022** | [Profit Before Tax](index=34&type=section&id=Profit%20Before%20Tax) The Group's profit before tax is stated after charging or crediting various items, including depreciation, amortization, and impairment provisions Items Charged/Credited to Profit Before Tax (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 112,060 | 22,738 | | Amortisation of intangible assets | 209,981 | 87,336 | | Net provision for (reversal of) impairment of financial and contract assets | (735) | 1,730 | [Income Tax Expense](index=34&type=section&id=Income%20Tax%20Expense) The Group's income tax expense primarily consists of PRC Enterprise Income Tax calculated at the statutory rate of 25% Income Tax Expense Analysis (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | 49,102 | 64,296 | | Under (over) provision in prior periods | 419 | (783) | | Deferred tax | 17,651 | 18,091 | | **Total** | **67,172** | **81,604** | - The PRC current income tax liability is calculated at the statutory rate of 25%[115](index=115&type=chunk) [Dividends](index=35&type=section&id=Dividends) A final dividend for 2024 of RMB 0.100 per share was declared, but no interim dividend is proposed for the first half of 2025 - A final dividend for 2024 of **RMB 0.100 per ordinary share**, totaling **RMB 200,000 thousand**, was approved at the AGM on June 26, 2025[117](index=117&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[118](index=118&type=chunk) [Earnings Per Share](index=35&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share for the six months ended June 30, 2025, were RMB 0.10, based on 2,000,000,000 weighted average shares - Basic and diluted earnings per share were **RMB 0.10**, calculated based on a weighted average of 2,000,000,000 ordinary shares[119](index=119&type=chunk) - The Group had no potential dilutive ordinary shares in issue during the period ended June 30, 2025[119](index=119&type=chunk) [Property, Plant and Equipment](index=36&type=section&id=Property%2C%20Plant%20and%20Equipment) The carrying amount of property, plant and equipment decreased slightly, with additions being offset by depreciation and disposals Carrying Amount of Property, Plant and Equipment (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Carrying amount at beginning of period | 2,094,083 | 413,801 | | Additions | 66,796 | 5,513 | | Depreciation | (112,060) | (22,738) | | Disposals | (4,473) | (11) | | Carrying amount at end of period | 2,044,346 | 396,565 | [Intangible Assets](index=36&type=section&id=Intangible%20Assets) The carrying amount of intangible assets decreased slightly due to amortization and disposals, despite new additions during the period Carrying Amount of Intangible Assets (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Carrying amount at beginning of period | 16,503,212 | 10,570,335 | | Additions | 19,620 | 2,216,707 | | Amortisation | (209,981) | (87,336) | | Disposals | (29,186) | – | | Carrying amount at end of period | 16,283,665 | 12,699,706 | [Trade and Bills Receivables](index=37&type=section&id=Trade%20and%20Bills%20Receivables) Total trade and bills receivables increased slightly, with receivables aged within one year constituting the largest portion Trade and Bills Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Net trade receivables | 540,114 | 537,448 | | Bills receivable | 32,920 | 4,663 | | **Total** | **573,034** | **542,111** | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Within 1 year | 435,748 | 427,321 | | 1 to 2 years | 22,691 | 28,371 | | 2 to 3 years | 6,003 | 5,012 | | Over 3 years | 75,672 | 76,744 | [Trade and Bills Payables](index=38&type=section&id=Trade%20and%20Bills%20Payables) Total trade and bills payables decreased significantly, with amounts due to related parties also showing a substantial reduction Ageing Analysis of Trade and Bills Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Within 1 year | 2,210,752 | 3,329,396 | | 1 to 2 years | 54,168 | 11,919 | | 2 to 3 years | 12,539 | 37,812 | | Over 3 years | 24,738 | – | | **Total** | **2,302,197** | **3,379,127** | - Amounts due to related parties totaled **RMB 123,527 thousand**, a significant decrease from **RMB 1,125,922 thousand** as of December 31, 2024[125](index=125&type=chunk) [Interest-bearing Bank and Other Borrowings](index=39&type=section&id=Interest-bearing%20Bank%20and%20Other%20Borrowings) The Group's total interest-bearing borrowings increased, primarily driven by non-current bank loans with repayment terms extending beyond five years Interest-bearing Bank and Other Borrowings (As of June 30, 2025) | Type | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Current borrowings | 883,334 | 841,208 | | Non-current borrowings | 10,467,574 | 9,767,581 | | **Total** | **11,350,908** | **10,608,789** | Repayment Schedule of Bank Loans (As of June 30, 2025) | Repayment Period | June 30, 2025 (RMB'000) | | :--- | :--- | | Within one year | 849,513 | | In the second year | 521,995 | | In the third to fifth years | 862,279 | | After five years | 8,538,061 | - Secured bank loans of **RMB 116,106 thousand** are subject to a covenant requiring the company's gearing ratio not to exceed 75%[128](index=128&type=chunk) [Provisions](index=40&type=section&id=Provisions) The carrying amount of provisions increased during the period due to additional provisions being made Movement in Provisions (As of June 30, 2025) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Carrying amount at beginning of period/year | 48,056 | 111,164 | | Additional provisions | 11,000 | 9,642 | | Utilisation of provisions | – | (72,750) | | Carrying amount at end of period/year | 59,056 | 48,056 | [Share Capital](index=40&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid ordinary share capital remained unchanged at RMB 2,000,000 thousand Share Capital (As of June 30, 2025) | Item | Number of issued shares ('000) | Share Capital (RMB'000) | | :--- | :--- | :--- | | As of June 30, 2025 | 2,000,000 | 2,000,000 | [Commitments](index=40&type=section&id=Commitments) The Group has made several contractual commitments, primarily related to the Ji-He Expressway project and other construction and technology projects Contractual Commitments (As of June 30, 2025) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Ji-He Expressway reconstruction and expansion project | 185,845 | 230,654 | | Qilu Assembly construction in progress | 139,604 | 114,177 | | Qilu Expressway digitalization construction project | 19,985 | – | | Purchase of equipment for energy technology station installation project | 28,800 | – | | **Total** | **374,234** | **344,831** | [Related Party Transactions](index=41&type=section&id=Related%20Party%20Transactions) The Group engaged in numerous transactions with related parties, including its ultimate holding company and fellow subsidiaries - Related parties include the ultimate holding company Shandong Hi-Speed Group Co., Ltd., the controlling shareholder Shandong Hi-Speed Company Limited, and their numerous fellow subsidiaries[132](index=132&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) Overview of Transactions with Related Parties (For the six months ended June 30, 2025) | Transaction Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Construction service income | 27,177 | 6,267 | | Sales of goods | 68,654 | 151,525 | | Interest income | 93 | 12 | | Purchases of goods | 12,759 | 94,293 | | Employee service fees | 7,774 | 7,483 | | Interest expenses | 7,606 | 8,677 | | Land lease | 5,774 | 5,774 | | Maintenance services | 7,793 | 139 | | Construction costs and supervision fees | 84,891 | 805,869 | - As of June 30, 2025, fees payable to related parties for service commitments amounted to approximately **RMB 345,390 thousand**[143](index=143&type=chunk) Outstanding Balances with Related Parties (As of June 30, 2025) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Cash and cash equivalents (associate of controlling shareholder) | 38,940 | 157,299 | | Trade and bills receivables (fellow subsidiaries) | 124,841 | 88,862 | | Contract assets (fellow subsidiaries) | 83,353 | 49,730 | | Trade and bills payables (fellow subsidiaries) | 111,556 | 1,112,930 | | Other payables and accruals (ultimate holding company) | 37,121 | 20,233 | | Dividends payable (ultimate holding company) | 77,850 | – | | Interest-bearing borrowings (ultimate holding company) | 563,017 | 582,282 | - The Group has a service agreement with Shandong Hi-Speed Group for cross-border centralized fund operation management, with a daily deposit balance not exceeding **RMB 140 million**, for which no service fee is charged[146](index=146&type=chunk) [Fair Value of Financial Instruments](index=49&type=section&id=Fair%20Value%20of%20Financial%20Instruments) Management considers the carrying amounts of financial instruments to approximate their fair values due to their short-term nature - Management believes the carrying amounts of short-term financial instruments approximate their fair values[147](index=147&type=chunk) - The fair values of non-current financial instruments, calculated by discounting future cash flows, also approximate their carrying amounts[147](index=147&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 二零二五年中期業績公告 財務摘要 - 1 - • 二零二五年上半年，北京首都機場的飛機起降架次達217,305架次，較上一年同期 增長約2.8%。旅客吞吐量達34,168,396人次，較上一年同期增長約4.5%。貨郵吞 吐量達746,268噸，較上一年同期增長約5.9%。 • 二零二五年上半年，本公司的營業收入為人民幣2,754,574,000元，較上一年同期 增長約2.6%。 • 二零二五年上半年，本公司的航空性業務收入為人民幣1,344,510,000元，較上一 年同期增長約4.6%。 • 二零二五年上半年，本公司的非航空性業務收入為人民幣1,410,064,000元，較上 一年同期增長約0.8%。 • 二零二五年上半年，本公司的經營費用為人民幣2,778,553,000元，較上一年同期 減少約4.2%。 • 二零二五年上半年，本公司的稅後淨虧損為人民幣163,861,000元（每股虧損約人 民幣0 ...

Financial Performance - The company's revenue for the six months ended June 30, 2025, was RMB 469,681,000, representing a 48.9% increase from RMB 315,379,000 in the same period of 2024[9]. - Gross profit margin decreased to 50.6% in 2025 from 54.3% in 2024, with gross profit amounting to RMB 237,559,000[9]. - Operating profit increased to RMB 60,418,000, a 120.5% rise compared to RMB 27,401,000 in the previous year, resulting in an operating margin of 12.9%[9]. - The company achieved a net profit of RMB 53,710,000, up 110.8% from RMB 25,539,000 in 2024, with a net profit margin of 11.4%[9]. - Basic earnings per share increased to RMB 0.40 from RMB 0.19, reflecting a significant growth in profitability[81]. - The total comprehensive income for the period was RMB 54,347,000, compared to RMB 25,470,000 in the same period last year, showing strong overall performance[81]. - The company's cost of revenue was RMB 232,122,000, which is a 61.5% increase from RMB 143,976,000 in the previous year[81]. - The company reported a profit of RMB 53,712,000 for the six months ended June 30, 2025, compared to a profit of RMB 25,546,000 for the same period in 2024, representing a growth of approximately 110%[84]. Market and Strategic Developments - The basketball game generated cumulative revenue exceeding RMB 200 million, while the baseball game achieved monthly revenue surpassing HKD 9 million[11]. - The company has established long-term partnerships with top sports leagues and clubs, enhancing its competitive advantage in the digital gaming market[10]. - The implementation of the "technology + IP + localized operation" strategy has led to significant value breakthroughs across the core business[10]. - The company has made progress in emerging markets, with steady user growth in Southeast Asian countries like Vietnam and Thailand, indicating substantial development potential[11]. - The operational model upgrade has shown key progress, with significant revenue growth in key markets like Korea, Europe, and Hong Kong[13]. - The company aims to enhance its technological barriers and deepen regional market penetration to improve global competitiveness in sports gaming[17]. Research and Development - Research and development expenses amounted to RMB 84,317,000, representing 18.0% of total revenue, reflecting the company's commitment to innovation[9]. - Research and development expenses rose to RMB 84,317,000, up 43% from RMB 58,899,000 in the prior year, highlighting continued investment in innovation[81]. Employee and Shareholder Information - The group had 517 full-time employees as of June 30, 2025, an increase from 491 employees as of December 31, 2024[42]. - Total employee costs amounted to approximately RMB 116.9 million for the six months ended June 30, 2025, compared to RMB 81.7 million for the same period in 2024[42]. - The company did not declare any interim dividend for the six months ended June 30, 2025, consistent with the previous year[45]. - Mr. Jia holds 31,307,986 shares, representing 21.93% of the company's equity[53]. - Mr. Huang holds 21,837,345 shares, representing 15.30% of the company's equity[53]. - The company has issued a total of 142,710,128 shares as of the report date, excluding treasury shares[61]. Financial Position and Cash Flow - Cash and cash equivalents amounted to approximately RMB 419.3 million as of June 30, 2025[30]. - The current ratio was approximately 2.4 times as of June 30, 2025, compared to 2.5 times as of December 31, 2024[30]. - Total assets increased to RMB 714,758,000 as of June 30, 2025, up from RMB 631,613,000 as of December 31, 2024, representing a growth of approximately 13%[82]. - Net cash generated from operating activities for the six months ended June 30, 2025, was RMB 112,220,000, significantly higher than RMB 47,605,000 for the same period in 2024, reflecting a growth of approximately 135%[85]. - The company's total equity increased to RMB 425,323,000 as of June 30, 2025, from RMB 377,133,000 at the end of 2024, indicating an increase of about 13%[83]. Share Incentive Plans - The group issued 4,742,928 new shares under the 2023 Share Incentive Plan during the six months ended June 30, 2025[47]. - The total number of shares that may be issued under the company's share incentive plans is approximately 3.36% of the weighted average number of issued shares as of June 30, 2025[67]. - The company has established performance assessment goals for the share reward recipients, which will be evaluated by the group[69]. - The company appointed Futu Trust Co., Ltd. and Casta Trust Co., Ltd. as trustees for the share incentive plans, ensuring independence from the company and its related parties[70]. Other Financial Metrics - The net financial cost increased by approximately RMB 0.3 million or 16.7% from RMB 1.8 million for the six months ended June 30, 2024, to RMB 2.1 million for the six months ended June 30, 2025[29]. - The company incurred RMB 660,000 in capital expenditures for property, plant, and equipment for the six months ended June 30, 2025, down from RMB 1,255,000 in the same period of 2024[105]. - The company purchased intangible assets amounting to RMB 36,240,000 for the six months ended June 30, 2025, compared to RMB 25,034,000 in the same period of 2024, indicating a 44.8% increase[105].

東方興業控股有限公 司 （於百慕達註冊成立之有限公司） （股份代號：430） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內 容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 ORIENTAL EXPLORER HOLDINGS LIMITED 截至二零二五年六月三十日止六個月之中期業績 中期業績 東方興業控股有限公司（「本公司」）董事會（「董事會」）宣布，本公司及其附屬公司（「本 集團」）截至二零二五年六月三十日止六個月之未經審核中期業績，連同比較數字載述 如下： 簡明綜合損益表 截至二零二五年六月三十日止六個月 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | 附註 | 千港元 | 千港元 | | | | （未經審核） | （未經審核） | | 收入 | 3 | 12,660 | 12,458 | | 所提供服務成本 | | (3,003) | (2,767) | | 毛利 | | 9,657 | 9 ...