[Financial Summary](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) The company experienced a significant decline in revenue and gross profit, turning from profit to loss for the six months ended June 30, 2025 | Indicator | 2025 (RMB) | 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from continuing operations | 75,800,000 Yuan | 128,800,000 Yuan | -41.1% | | Gross Profit | 13,200,000 Yuan | 29,200,000 Yuan | -54.6% | | Loss / Profit attributable to owners of the Company | Loss 23,300,000 Yuan | Profit 11,900,000 Yuan | Turned from profit to loss | | Basic and diluted loss / earnings per share | Loss 5.65 cents | Profit 2.89 cents | Turned from profit to loss | | Interim Dividend | Not recommended for payment | None | No change | [Unaudited Condensed Interim Results](index=2&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%BB%BC%E5%90%88%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9) [Condensed Statement of Profit or Loss](index=2&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) The Group's revenue for the six months ended June 30, 2025, significantly decreased by 41.1%, resulting in a loss attributable to owners of the Company Condensed Statement of Profit or Loss Key Data (RMB Thousand) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 75,832 | 128,824 | | Cost of Sales | (62,585) | (99,654) | | Gross Profit | 13,247 | 29,170 | | Other Income | 952 | 2,044 | | Other gains / (losses), net | 1,251 | (675) | | Administrative Expenses | (18,869) | (20,011) | | Selling and Distribution Costs | (5,222) | (5,531) | | Operating (Loss) / Profit | (8,641) | 4,997 | | Finance Costs | (3,013) | (1,167) | | Share of profit less loss of associates | (13,807) | 11,473 | | (Loss) / Profit before tax | (25,461) | 15,303 | | Income Tax | 102 | (1,309) | | (Loss) / Profit for the period | (25,359) | 13,994 | | (Loss) / Profit attributable to owners of the Company | (23,320) | 11,918 | | Basic and diluted (loss) / earnings per share (RMB cents) | (5.65) | 2.89 | [Condensed Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's total comprehensive income for the six months ended June 30, 2025, was a loss of RMB 26,004 thousand, primarily due to the loss for the period and exchange differences Condensed Statement of Profit or Loss and Other Comprehensive Income Key Data (RMB Thousand) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | (Loss) / Profit for the period | (25,359) | 13,994 | | Exchange differences on translation | (645) | 721 | | Total comprehensive income for the period | (26,004) | 14,715 | | Attributable to owners of the Company | (23,965) | 12,639 | | Attributable to non-controlling interests | (2,039) | 2,076 | [Condensed Statement of Financial Position](index=4&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets less current liabilities slightly increased, while net assets decreased due to the period's loss Condensed Statement of Financial Position Key Data (RMB Thousand) | Indicator | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 480,377 | 428,974 | | Intangible assets - service concession arrangements | 35,034 | 49,134 | | Interests in associates | 144,440 | 163,579 | | Total non-current assets | 698,156 | 699,164 | | **Current assets** | | | | Inventories | 397,365 | 390,608 | | Cash and cash equivalents | 119,239 | 185,756 | | Total current assets | 695,668 | 713,645 | | **Current liabilities** | | | | Bank loans and other borrowings | 116,877 | 145,124 | | Total current liabilities | 201,806 | 234,371 | | Net current assets | 493,862 | 479,274 | | **Non-current liabilities** | | | | Bank loans | 139,493 | 99,469 | | Total non-current liabilities | 139,593 | 100,009 | | Net assets | 1,052,425 | 1,078,429 | | Total equity attributable to owners of the Company | 727,180 | 751,145 | [Notes to the Unaudited Interim Financial Report](index=6&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E9%99%84%E6%B3%A8) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=%E7%BC%96%E8%A3%BD%E5%9F%BA%E5%87%86%E5%8F%8A%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%98%E5%8A%A8) This interim financial report is prepared in accordance with HKAS 34 and Listing Rules, reviewed by auditors, with no significant impact from accounting policy changes - The interim financial report is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[11](index=11&type=chunk) - This interim financial report is unaudited but has been reviewed by Crowe (HK) CPA Limited in accordance with Hong Kong Standard on Review Engagements 2410[12](index=12&type=chunk) - The Group applied revised Hong Kong Financial Reporting Standards during the accounting period, but these developments did not have a significant impact on the results and financial position for the current or prior periods[13](index=13&type=chunk) [Revenue and Segment Reporting](index=7&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) The Group's business comprises Qingping Expressway and liquor trading segments, with total revenue of RMB 75,832 thousand, showing a significant decline in liquor sales [Revenue breakdown](index=7&type=section&id=%E6%94%B6%E5%85%A5%E7%BB%86%E5%88%86) Revenue by Major Product or Service Line (RMB Thousand) | Product/Service Line | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Toll revenue | 31,052 | 34,052 | | Sales of liquor | 44,780 | 94,772 | | **Total Revenue** | **75,832** | **128,824** | - The Group's revenue is almost entirely derived from Mainland China, thus no geographical segment analysis is presented[15](index=15&type=chunk) - The Group's principal activities include the construction, operation, and management of Qingping Expressway, and the distribution of Huamao liquor and Xijiu Shaofang liquor[17](index=17&type=chunk) [Segment results, assets and liabilities](index=8&type=section&id=%E5%88%86%E9%83%A8%E4%B8%9A%E7%BB%A9%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA) Segment results, measured by adjusted EBITDA, show Qingping Expressway remaining profitable while the liquor business turned to a loss Segment Results (Adjusted EBITDA) and Assets & Liabilities (RMB Thousand) | Indicator | Qingping Expressway (2025) | Liquor (2025) | Total (2025) | Qingping Expressway (2024) | Liquor (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Reportable segment revenue | 31,052 | 44,780 | 75,832 | 34,052 | 94,772 | 128,824 | | Reportable segment profit (adjusted EBITDA) | 12,852 | (11,879) | 973 | 15,086 | 24,825 | 39,911 | | Interest income from bank deposits | 35 | 56 | 91 | 137 | 825 | 962 | | Interest expense | – | (3,001) | (3,001) | – | (1,135) | (1,135) | | Depreciation and amortization | (14,602) | (3,479) | (18,081) | (15,887) | (869) | (16,756) | | Reportable segment assets | 169,502 | 1,233,810 | 1,403,312 | 176,415 | 1,170,246 | 1,346,661 | | Reportable segment liabilities | 6,645 | 380,239 | 386,884 | 7,313 | 286,125 | 293,438 | - Segment performance is assessed using "adjusted EBITDA," which is profit before interest, tax, depreciation, and amortization, adjusted for items not specifically attributable to individual segments[18](index=18&type=chunk) [Reconciliation of reportable segment profit or loss](index=9&type=section&id=%E5%8F%AF%E5%91%88%E6%8A%A5%E5%88%86%E9%83%A8%E6%8D%9F%E7%9B%8A%E4%B9%8B%E5%AF%B9%E8%B4%A6) Reconciliation of Reportable Segment Profit or Loss (RMB Thousand) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Reportable segment profit | 973 | 39,911 | | Other income | 636 | 1,752 | | Other losses, net | 314 | (132) | | Depreciation and amortization | (18,413) | (16,756) | | Finance costs | (3,013) | (1,135) | | Unallocated head office and corporate expenses | (5,958) | (8,337) | | Consolidated (loss) / profit before tax | (25,461) | 15,303 | [ (Loss) / Profit before tax](index=10&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%EF%BC%88%E4%BA%8F%E6%8D%9F%EF%BC%89%E2%97%95%E6%BA%A2%E5%88%A9) The Group incurred a pre-tax loss of RMB 25,461 thousand, primarily due to a significant increase in finance costs and a slight rise in staff costs (Loss) / Profit before Tax Components (RMB Thousand) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | **Finance Costs** | | | | Interest on bank loans and other borrowings | 5,102 | 1,132 | | Less: Interest expenses capitalized into construction in progress | (2,141) | – | | Interest on lease liabilities | 52 | 35 | | **Total Finance Costs** | **3,013** | **1,167** | | **Staff Costs** | | | | Salaries, wages and other benefits | 14,729 | 15,800 | | Contributions to defined contribution retirement plans | 2,220 | 662 | | **Total Staff Costs** | **16,949** | **16,462** | | **Other Items** | | | | Depreciation expenses - owned property, plant and equipment | 3,089 | 1,061 | | Depreciation expenses - right-of-use assets | 1,224 | 568 | | Amortization | 14,100 | 15,455 | - Borrowing costs are capitalized at an annual interest rate of **3.65%**[22](index=22&type=chunk) [Income Tax](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) The Group's income tax for the period was a gain of RMB 102 thousand, mainly due to negative current tax for PRC enterprise income tax Income Tax Components (RMB Thousand) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Current tax - PRC enterprise income tax | (101) | 1,148 | | Deferred tax - origination and reversal of temporary differences | (1) | 161 | | **Total Income Tax** | **(102)** | **1,309** | - The Group is not subject to any income tax in the Cayman Islands and the British Virgin Islands[26](index=26&type=chunk) - No provision has been made for Hong Kong profits tax as the Group had no assessable profits in Hong Kong[26](index=26&type=chunk) - Subsidiaries in Mainland China are subject to PRC enterprise income tax at a rate of **25%** on their assessable profits[26](index=26&type=chunk) [Loss / Earnings per share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%EF%BC%88%E4%BA%8F%E6%8D%9F%EF%BC%89%E2%97%95%E7%9B%88%E5%88%A9) The Group reported a basic loss per share of RMB 5.65 cents for the six months ended June 30, 2025, shifting from earnings in the prior period Loss / Earnings per Share Calculation (RMB Thousand / Thousand Shares) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Loss / Profit attributable to ordinary equity holders | (23,320) | 11,918 | | Weighted average number of ordinary shares in issue during the period | 412,608 | 412,608 | | Basic and diluted (loss) / earnings per share (RMB cents) | (5.65) | 2.89 | - There were no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024[25](index=25&type=chunk) [Contingent consideration receivable](index=12&type=section&id=%E5%BA%94%E6%94%B6%E6%88%96%E7%84%B6%E4%BB%A3%E4%BB%B7) As of June 30, 2025, contingent consideration receivable increased to RMB 21,524 thousand, related to the third installment of the Dao Yue disposal, expected to be recovered within one year Fair Value Changes and Analysis of Contingent Consideration Receivable (RMB Thousand) | Indicator | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | At beginning of period/year | 21,193 | 84,040 | | Repaid during period/year | – | (63,086) | | Fair value change | 331 | 239 | | At end of period/year | 21,524 | 21,193 | | **Analysis for reporting purposes** | | | | - Current | 21,524 | 545 | | - Non-current | – | 20,648 | - Contingent consideration receivable relates to the third installment of the disposal of Dao Yue, subject to estimated adjustments including land title registration fees and Dao Yue's net profit[27](index=27&type=chunk)[28](index=28&type=chunk) - The contingent consideration receivable is measured at fair value using the discounted cash flow method, discounted at an effective annual interest rate of **3%** (December 31, 2024: 3.1%), classified as "Level 3 valuation" under HKFRS 13 Fair Value Measurement[28](index=28&type=chunk)[29](index=29&type=chunk) - Directors estimate that the third installment of the contingent consideration receivable will be recovered within one year[29](index=29&type=chunk) [Trade and other receivables and prepayments](index=13&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E3%80%81%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E9%A2%84%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other receivables increased to RMB 14,121 thousand, while prepayments, mainly for liquor business suppliers and distillery construction, totaled RMB 90,797 thousand Trade and Other Receivables (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 7,524 | 4,840 | | Other receivables | 6,597 | 5,553 | | **Total** | **14,121** | **10,393** | - All trade receivables are aged within three months[30](index=30&type=chunk) Prepayments (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Prepayments for: | | | | - Suppliers | 52,759 | 48,145 | | - Subcontractors | 38,038 | 36,563 | | **Total** | **90,797** | **84,708** | - Prepayments to suppliers are primarily for the liquor business, and prepayments to subcontractors are for the construction of the distillery in Guizhou, China[31](index=31&type=chunk)[32](index=32&type=chunk) [Accruals and other payables](index=14&type=section&id=%E9%A2%84%E6%8F%90%E8%B4%B9%E7%94%A8%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total accruals and other payables decreased to RMB 52,933 thousand, mainly comprising construction payables and staff welfare payables Accruals and Other Payables (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Payables for construction work | 38,660 | 49,131 | | Salaries and other staff welfare payables | 2,944 | 6,976 | | Value-added tax and surcharges | 296 | 606 | | Other payables | 11,033 | 10,706 | | **Total** | **52,933** | **67,419** | - All accruals and other payables are expected to be settled or recognized as income within one year[33](index=33&type=chunk) [Dividends](index=15&type=section&id=%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: none)[34](index=34&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) [Financial Review](index=15&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B9) The Group's revenue and gross profit significantly declined due to China's economic slowdown and weak consumer market, leading to a shift from profit to loss [Revenue](index=15&type=section&id=%E6%94%B6%E5%85%A5) Revenue Composition and Year-on-Year Change (RMB Thousand) | Revenue Source | 2025 (approx.) | 2024 (approx.) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 75,800 | 128,800 | -41.1% | | Qingping Expressway toll fees | 31,100 | 34,100 | -8.8% | | Liquor sales | 44,800 | 94,800 | -52.7% | - The significant decrease in revenue is primarily due to the slowdown in China's economic growth and weak purchasing power[35](index=35&type=chunk) - Qingping Expressway's total traffic volume was approximately **10,300,000 vehicle trips**, a decrease of approximately **9.7%** year-on-year[35](index=35&type=chunk) - The reduction in liquor sales revenue is mainly attributed to the economic slowdown, weak real estate market, and high youth unemployment rate suppressing discretionary spending in China[35](index=35&type=chunk) [Cost of Sales and Gross Profit](index=15&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC%E5%8F%8A%E6%AF%9B%E5%88%A9) Gross profit and overall gross profit margin decreased, consistent with the decline in total revenue, particularly in the Qingping Expressway segment Gross Profit and Gross Profit Margin Changes (RMB Thousand) | Indicator | 2025 (approx.) | 2024 (approx.) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Gross Profit | 13,200 | 29,200 | -54.8% | | Overall Gross Profit Margin | 17.5% | 22.6% | -5.1 percentage points | | Qingping Expressway Segment Gross Profit | 1,200 | 3,100 | Decrease | | Qingping Expressway Segment Gross Profit Margin | 3.9% | 9.3% | Decrease | | Liquor Trading Segment Gross Profit | 12,000 | N/A | N/A | | Liquor Trading Segment Gross Profit Margin | 26.9% | 27.5% | -0.6 percentage points | - The decrease in gross profit is consistent with the reduction in total revenue[36](index=36&type=chunk) - The decline in Qingping Expressway segment gross profit and gross profit margin is primarily due to reduced toll revenue[36](index=36&type=chunk) [Other Income and Other Gains / (Losses), Net](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%97%95%EF%BC%88%E4%BA%8F%E6%8D%9F%EF%BC%89%E5%87%80%E9%A2%9D) Other income primarily consists of expressway billboard rental and bank interest, while other gains/losses reflect exchange differences Other Income and Other Gains / (Losses), Net (RMB Thousand) | Indicator | 2025 (approx.) | 2024 (approx.) | | :--- | :--- | :--- | | Other Income | 1,000 | 2,000 | | Other Gains / (Losses), Net | 1,300 (Gain) | 700 (Loss) | - Other income mainly includes expressway billboard rental income and interest income from bank deposits[37](index=37&type=chunk) - Other gains / (losses), net primarily reflect exchange gains and losses recorded during the period[37](index=37&type=chunk) [Administrative Expenses](index=16&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses decreased by 5.5% due to enhanced cost control measures implemented to mitigate the impact of declining sales Administrative Expenses (RMB Thousand) | Indicator | 2025 (approx.) | 2024 (approx.) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 18,900 | 20,000 | -5.5% | - The decrease in administrative expenses is mainly due to enhanced cost control during the period to mitigate the adverse impact of declining sales[38](index=38&type=chunk) [Selling and Distribution Costs](index=16&type=section&id=%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E6%88%90%E6%9C%AC) Selling and distribution costs decreased by 5.5%, primarily comprising advertising expenses and staff costs for the liquor trading business Selling and Distribution Costs (RMB Thousand) | Indicator | 2025 (approx.) | 2024 (approx.) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Costs | 5,200 | 5,500 | -5.5% | - Selling and distribution costs primarily include advertising expenses and staff costs for the liquor trading business[39](index=39&type=chunk) [Finance Costs](index=16&type=section&id=%E8%B4%A2%E5%8A%A1%E8%B4%B9%E7%94%A8) Finance costs increased by 150%, mainly due to bank financing for the liquor and spirits trading business during the period Finance Costs (RMB Thousand) | Indicator | 2025 (approx.) | 2024 (approx.) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 3,000 | 1,200 | +150% | - The increase in finance costs is mainly attributable to bank financing provided for the liquor and spirits trading business during the period[40](index=40&type=chunk) [ (Loss) / Profit for the period](index=16&type=section&id=%E6%9C%9F%E5%86%85%EF%BC%88%E4%BA%8F%E6%8D%9F%EF%BC%89%E2%97%95%E6%BA%A2%E5%88%A9) The Group shifted from profit to a loss of RMB 25,400 thousand for the period, primarily due to the significant decline in liquor sales amid a shrinking consumer market (Loss) / Profit for the Period (RMB Thousand) | Indicator | 2025 (approx.) | 2024 (approx.) | | :--- | :--- | :--- | | (Loss) / Profit for the period | Loss 25,400 | Profit 14,000 | - The shift from profit to loss for the period is mainly due to the significant reduction in liquor sales amidst a continuous contraction of the Chinese consumer market[41](index=41&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group funds operations through internal resources and bank loans, with increased bank borrowings and credit facilities, while cash and cash equivalents decreased Liquidity and Financial Resources Overview (RMB Thousand) | Indicator | As of June 30, 2025 (approx.) | As of December 31, 2024 (approx.) | | :--- | :--- | :--- | | Total bank loans and other borrowings drawn | 256,400 | 244,600 | | Total cash and cash equivalents | 119,200 | 185,800 | | Total bank credit facilities | 582,000 | 550,000 | | Ratio of total outstanding bank loans and other borrowings to total equity | 0.24 | 0.23 | - The Group's bank credit facilities are primarily utilized for working capital for the liquor business segment's trade[43](index=43&type=chunk) - The Group's borrowings are mainly on a floating interest rate basis, with no hedging arrangements entered into during the period, and management continues to monitor interest rate risk[43](index=43&type=chunk) [Intangible Assets - Service Concession Arrangements](index=17&type=section&id=%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2%EF%BC%8D%E6%9C%8D%E5%8B%99%E7%89%B9%E8%A8%B1%E6%AC%8A%E5%AE%89%E6%8E%92) Service concession arrangements grant the Group rights to operate Qingping Expressway and collect tolls, with no further impairment recognized during the period - Service concession arrangements grant the Group the right to operate Qingping Expressway and collect tolls[44](index=44&type=chunk) - The amount of intangible assets is subject to regular impairment reviews, and no further impairment was recognized during the period[44](index=44&type=chunk) [Employees and Remuneration](index=17&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC) As of June 30, 2025, the Group employed 389 staff with total remuneration expenses of approximately RMB 16,900 thousand, based on performance-linked policies Number of Employees and Remuneration Expenses (RMB Thousand) | Indicator | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 389 | 387 | | Total Employee Remuneration Expenses | 16,900 | 16,500 | - The Group's remuneration policy is performance-based and includes provident fund schemes (Hong Kong), state-managed retirement schemes (China), and medical insurance[45](index=45&type=chunk) - The Group may grant discretionary bonuses, restricted share award schemes, and employee share options based on individual performance assessments[45](index=45&type=chunk) [Foreign Exchange Risk](index=17&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group primarily operates in China with most transactions settled in RMB, while some cash and bank deposits are denominated in HKD, with no hedging arrangements in place - The Group primarily operates in China, with most transactions settled in RMB[46](index=46&type=chunk) - A portion of the Group's cash and bank deposits are denominated in HKD[46](index=46&type=chunk) - During the period, the Group did not enter into any hedging arrangements to hedge foreign currency risk, and management will continue to monitor and consider appropriate actions[46](index=46&type=chunk) [Pledge of Assets](index=18&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, approximately RMB 38,000 thousand in long-term secured bank loans are guaranteed by directors and pledged with equity, while RMB 18,400 thousand in other borrowings are secured by inventories - Approximately **RMB 38,000 thousand** of long-term secured bank loans are guaranteed by the Company's and subsidiaries' directors and pledged with the entire equity interest in Shenzhen Huayu Expressway Investment Co., Ltd[47](index=47&type=chunk) - Approximately **RMB 18,400 thousand** of other borrowings are secured by the Group's inventories with a carrying value of approximately **RMB 92,000 thousand**[47](index=47&type=chunk) [Business Review](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%B9) The Qingping Expressway business saw reduced toll revenue and traffic due to competition and economic slowdown, while the liquor trading business suffered a significant revenue decline and segment loss amid a shrinking consumer market [Qingping Expressway](index=18&type=section&id=%E6%B8%85%E5%B9%B3%E9%AB%98%E9%80%9F) - Qingping Expressway's total toll revenue was approximately **RMB 31,100,000**, a decrease of approximately **8.8%** compared to the same period last year[48](index=48&type=chunk) - Average traffic volume was approximately **1,700,000 vehicle trips per month**, a decrease of approximately **10.5%** compared to the same period last year[48](index=48&type=chunk) - Qingping Expressway's performance was affected by competition from nearby routes, increased national holiday toll exemptions, and the slowdown in China's economic growth[48](index=48&type=chunk) [Liquor Trading](index=18&type=section&id=%E9%85%92%E9%A1%9E%E8%B2%BF%E6%98%93) - Liquor trading revenue was approximately **RMB 44,800,000**, a decrease of approximately **52.7%** compared to the same period last year[49](index=49&type=chunk) - The segment recorded a loss (adjusted EBITDA) of approximately **RMB 11,900,000** for the period, compared to a profit of approximately **RMB 24,800,000** in the same period last year[49](index=49&type=chunk) - The shrinking Chinese consumer market severely impacted the liquor trading business, leading to inventory accumulation in distribution channels despite the Group's active promotions[49](index=49&type=chunk) [Integrated Production Base in Renhuai, Guizhou](index=18&type=section&id=%E6%96%BC%E8%B2%B4%E5%B7%9E%E4%BB%81%E6%87%B7%E7%9A%84%E7%B6%9C%E5%90%88%E7%94%A2%E7%94%9F%E5%9F%BA%E5%9C%B0) - The Group acquired three land parcels in Renhuai City, Guizhou Province, totaling no less than **150,000 square meters** in 2023, for developing a distillery and integrated operations center[50](index=50&type=chunk) - Structural engineering for the distillery and operations center was completed by June 30, 2025, with final decoration expected to be completed by the end of 2025[50](index=50&type=chunk) [Prospects](index=19&type=section&id=%E5%89%8D%E6%99%AF) Despite economic slowdown, the Group anticipates accelerated growth from interest rate cuts and foreign demand recovery, with stable toll revenue and improved liquor business after inventory digestion - Growth momentum is expected to accelerate in the short term, driven by declining interest rates and a recovery in foreign demand[51](index=51&type=chunk) - Qingping Expressway's toll revenue is expected to grow steadily, becoming one of the Group's main sources of stable cash inflow[51](index=51&type=chunk) - The liquor trading business is expected to improve after digesting accumulated inventory, and the Group will continue to build the Huamao liquor brand and arrange more sales and marketing activities[51](index=51&type=chunk) - Upon completion of the production facilities in Renhuai City, the Group can benefit from vertical integration of the liquor business, with trial production already completed[51](index=51&type=chunk) - The Group will continue to seek opportunities for other infrastructure projects in China consistent with its overall business strategy, including acquiring abandoned, half-developed, or operational projects[52](index=52&type=chunk) - The Group will also consider expanding its business into other promising commercial areas[52](index=52&type=chunk) [Other Information](index=19&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Purchase, Sale or Redemption of the Company's Securities](index=19&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%AD%89%E5%88%B8) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's securities during the period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period[53](index=53&type=chunk) [Corporate Governance](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company is committed to maintaining high standards of corporate governance, adhering to the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the period - The Company is committed to maintaining a high level of corporate governance in the best interests of its shareholders[54](index=54&type=chunk) - The Company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and has complied with its provisions throughout the period[54](index=54&type=chunk) [Standard Code for Securities Transactions by Directors](index=20&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company adopted the Standard Code for Securities Transactions by Directors in Appendix C3 of the Listing Rules, with all directors confirming compliance during the period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[55](index=55&type=chunk) - All Directors have confirmed their compliance with the required standards set out in the adopted Standard Code during the period[55](index=55&type=chunk) [Audit Committee](index=20&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited interim results and confirmed compliance with accounting standards and regulations - The Audit Committee comprises three independent non-executive directors, with Mr. Zhu Jianhong, the chairman, possessing financial professional qualifications and experience[56](index=56&type=chunk) - The primary responsibilities of the Audit Committee include reviewing and monitoring the Group's financial reporting process and internal control measures[56](index=56&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed interim results for the period and is of the opinion that they comply with the relevant accounting standards, rules, and regulations, and that appropriate disclosures have been duly made[56](index=56&type=chunk) [Publication of Interim Results Announcement and Despatch of Interim Report](index=20&type=section&id=%E5%88%8A%E8%BC%89%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E4%BD%88%E5%8F%8A%E5%AF%84%E7%99%BC%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement is published on the HKEX and Company websites, with the full interim report to be despatched to shareholders and published online in due course - This announcement has been published on the websites of HKEX (www.hkexnews.hk) and the Company (www.huayu.com.hk)[57](index=57&type=chunk) - The Company's 2025 interim report, containing all information required by the Listing Rules, will be despatched to the Company's shareholders and published on the respective websites of the Company and HKEX in due course[57](index=57&type=chunk) [Board of Directors](index=20&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) This announcement was published on August 28, 2025, and the Board comprises three executive and three independent non-executive directors - This announcement was published on **August 28, 2025**[59](index=59&type=chunk) - The Board of Directors comprises three executive directors (Mr. Chen Yangnan, Mr. Fu Jiepin, and Ms. Liu Baohua) and three independent non-executive directors (Mr. Zhu Jianhong, Mr. Hu Liege, and Mr. Lin Hanquan)[59](index=59&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之任何損失承擔 任 何 責 任。 00991 2025 年中期業績公告 經 營 及 財 務 摘 要： 1 • 經營收入約為人民幣 571.93 億 元，較 2024 年上半年減少約 1.93%。 • 稅前利潤總額約為人民幣 76.71 億 元，較 2024 年上半年增加約 37.92%。 • 歸屬於本公司權益持有者的淨利潤約為人民幣 48.74 億 元，較 2024 年 上 半年增加約 50.30%。 • 本公司股東應佔基本每股盈利約為人民幣 0.2215 元，較 2024 年上半年增 加人民幣 0.0901 元╱股。 一 . 公司業績 大 唐 國 際 發 電 股 份 有 限 公 司（「公 司」或「本公司」）董 事 會（「董事會」）在 此 宣 佈 本 公 司 及 其 子 公 司（「本集團」）截 至 2025 年 6 月 30 日 止 6 個 月 期 間（「該 期 間」或「本 期 ...

[2025 Interim Results Announcement](index=2&type=section&id=Interim%20Results%20Announcement) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group achieved significant revenue growth and a substantial reduction in loss in the first half of 2025, primarily due to improvements in the property development business, despite finance costs remaining a major expense Condensed Consolidated Statement of Profit or Loss | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 35,626 | 13,489 | 164.1% | | Cost of sales | (25,543) | (7,702) | 231.6% | | Gross profit | 10,083 | 5,787 | 74.2% | | Other income and gains | 547 | 1,060 | -48.4% | | Selling expenses | (381) | (1,411) | -73.0% | | Administrative and other expenses | (3,644) | (46,455) | -92.2% | | Finance costs | (53,563) | (52,715) | 1.6% | | Loss before tax | (46,958) | (93,734) | -49.9% | | Income tax (expense)/credit | (1,069) | 224 | -576.3% | | Loss for the period | (48,027) | (93,510) | -48.7% | | Loss for the period attributable to owners of the Company | (52,492) | (88,185) | -40.5% | | Non-controlling interests | 4,465 | (5,325) | 183.8% | | Basic loss per share (HK cents) | (0.68) | (1.15) | -40.9% | - Loss for the period significantly narrowed by **48.7%**, decreasing from **HKD 93,510 thousands** in H1 2024 to **HKD 48,027 thousands** in H1 2025[4](index=4&type=chunk) - Basic loss per share improved from **1.15 HK cents** in H1 2024 to **0.68 HK cents** in H1 2025[4](index=4&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive loss for H1 2025 narrowed compared to the prior year, primarily due to a reduced loss for the period, although exchange differences on translating foreign operations shifted from a gain to a loss Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period | (48,027) | (93,510) | -48.7% | | Exchange differences on translating foreign operations | (309) | 8,488 | -103.6% | | Total comprehensive loss for the period | (48,336) | (85,022) | -43.1% | | Total comprehensive loss for the period attributable to owners of the Company | (55,289) | (79,731) | -30.7% | | Non-controlling interests | 6,953 | (5,291) | 231.4% | - Total comprehensive loss for the period decreased from **HKD 85,022 thousands** in H1 2024 to **HKD 48,336 thousands** in H1 2025, narrowing by **43.1%**[5](index=5&type=chunk) - Exchange differences on translating foreign operations shifted from a **HKD 8,488 thousands** gain in H1 2024 to a **HKD 309 thousands** loss in H1 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly increased, but total current liabilities remained high, leading to a further expansion of net current liabilities and an increase in total equity deficit to HKD 66,424 thousands, posing significant uncertainty to its going concern ability Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 1,772,752 | 1,741,641 | 1.8% | | Total current assets | 1,306,729 | 1,337,198 | -2.3% | | Total assets | 3,079,481 | 3,078,839 | 0.02% | | Total current liabilities | 1,819,089 | 1,755,322 | 3.6% | | Net current liabilities | (512,360) | (418,124) | 22.5% | | Total non-current liabilities | 1,326,816 | 1,341,605 | -1.1% | | Net liabilities | (66,424) | (18,088) | 267.2% | | Deficit attributable to owners of the Company | (201,235) | (145,946) | 37.9% | | Non-controlling interests | 134,811 | 127,858 | 5.4% | | Total deficit | (66,424) | (18,088) | 267.2% | - Net current liabilities expanded from **HKD 418,124 thousands** as of December 31, 2024, to **HKD 512,360 thousands** as of June 30, 2025, indicating increased liquidity pressure[7](index=7&type=chunk) - The Group's total equity deficit further expanded from **HKD 18,088 thousands** as of December 31, 2024, to **HKD 66,424 thousands** as of June 30, 2025[7](index=7&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the Group's accounting policies, operating segments, revenue composition, finance costs, taxation, asset and liability breakdowns, and commitments, revealing ongoing going concern challenges and measures taken to improve liquidity [Basis of Preparation and Going Concern](index=6&type=section&id=Basis%20of%20Preparation%20and%20Going%20Concern) The Group faces severe liquidity challenges, recording a net loss as of June 30, 2025, with substantial financial obligations due within the next 12 months, while cash and cash equivalents are insufficient for repayment; directors have formulated plans to improve liquidity, but significant uncertainties regarding its going concern ability persist - As of June 30, 2025, the Group recorded a net loss of approximately **HKD 48,027,000**[12](index=12&type=chunk) - Approximately **HKD 1,819,089,000** of the Group's financial obligations are due within the next 12 months, including bank borrowings of approximately **HKD 170,345,000** and other borrowings of **HKD 64,217,000** repayable on demand, while available cash and cash equivalents are only approximately **HKD 16,536,000**[12](index=12&type=chunk) - Directors have implemented various plans and measures to improve liquidity and financial position, including accelerating property pre-sales and sales, optimizing the workforce, negotiating renewals and extensions with lenders, and exploring asset disposal opportunities[13](index=13&type=chunk) [Operating Segment Information](index=8&type=section&id=Operating%20Segment%20Information) The Group primarily operates in property development, hotel business, and other businesses (retail sales); the property development segment achieved significant profitability in H1 2025, while hotel business losses narrowed, indicating property development as the main driver of improved performance Operating Segment Performance | Segment | H1 2025 Revenue (HKD thousands) | H1 2024 Revenue (HKD thousands) | H1 2025 Profit/(Loss) (HKD thousands) | H1 2024 Profit/(Loss) (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Property development | 35,027 | 11,930 | 18,269 | (24,564) | | Hotel business | 308 | 309 | (8,231) | (11,560) | | Others | 291 | 1,250 | (143) | (2,845) | | **Total** | **35,626** | **13,489** | **9,895** | **(38,969)** | - Property development segment revenue increased by **193.6%** year-on-year and shifted from a loss to a profit, being the primary contributor to the Group's overall performance improvement[18](index=18&type=chunk) - Hotel business revenue remained stable, with segment loss narrowing by **28.8%**[18](index=18&type=chunk) [Revenue and Other Income](index=10&type=section&id=Revenue%20and%20Other%20Income) The Group's revenue primarily derived from sales of properties held for sale, which significantly increased in H1 2025, while other income and gains decreased, mainly due to reduced rental income Revenue by Source | Revenue Source | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Sales of properties held for sale | 29,956 | 10,507 | 185.1% | | Sales of goods | 291 | 1,250 | -76.7% | | Licensing income | 308 | 309 | -0.3% | | Property agency income | 5,071 | 1,423 | 256.4% | | **Total Revenue** | **35,626** | **13,489** | **164.1%** | Other Income and Gains | Other Income and Gains | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 89 | 131 | -32.1% | | Rental income | – | 354 | -100.0% | | Others | 458 | 575 | -20.3% | | **Total** | **547** | **1,060** | **-48.4%** | - Sales of properties held for sale revenue was the primary driver of the Group's revenue, growing by **185.1%** year-on-year[25](index=25&type=chunk) [Finance Costs](index=11&type=section&id=Finance%20Costs) The Group's finance costs primarily stemmed from interest on loans and borrowings, and despite some borrowing costs being capitalized, overall finance costs remained at a high level Finance Costs Breakdown | Item | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on loans and borrowings | 41,073 | 44,083 | -6.9% | | Interest on amount due to a director | 8,143 | 9,013 | -9.6% | | Interest on acceptance bills payable | 6,252 | 1,915 | 226.5% | | Interest on lease liabilities | – | 40 | -100.0% | | **Total** | **55,508** | **55,011** | **0.9%** | | Less: Amount capitalized in properties under development | (1,945) | (2,296) | -15.3% | | **Net finance costs** | **53,563** | **52,715** | **1.6%** | - Borrowing costs were capitalized at annual interest rates ranging from **6.5% to 8.1%** (H1 2024: **6.5% to 8.5%**)[28](index=28&type=chunk) [Loss Per Share](index=12&type=section&id=Loss%20Per%20Share) The Group's basic loss per share improved compared to the prior year, but diluted loss per share was not presented due to the absence of potential ordinary shares outstanding during the period - Basic loss per share is calculated based on the loss for the period attributable to owners of the Company of **HKD 52,492,000** (H1 2024: **HKD 88,185,000**) and **7,687,158,040** ordinary shares outstanding[32](index=32&type=chunk) - Diluted loss per share was not presented as there were no potential ordinary shares outstanding during the period[32](index=32&type=chunk) [Assets and Liabilities](index=12&type=section&id=Assets%20and%20Liabilities) The Group's properties under development and properties held for sale are major assets, with an increase in impairment losses on trade receivables; current liabilities saw significant increases in trade payables and interest payables, while total loans and borrowings decreased, yet substantial short-term repayment pressure persists Asset and Liability Overview | Asset and Liability Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Properties under development | 1,606,952 | 1,567,804 | 2.5% | | Properties held for sale | 836,225 | 843,756 | -0.9% | | Trade receivables (net) | 2,576 | 1,911 | 34.8% | | Trade payables, other payables and accrued expenses | 658,228 | 641,586 | 2.6% | | Contract liabilities | 96,889 | 34,634 | 179.7% | | Total loans and borrowings | 1,409,114 | 1,514,248 | -6.9% | | Amount due to a director | 155,006 | 153,121 | 1.2% | | Acceptance bills payable | 139,102 | 136,815 | 1.7% | - Impairment losses on trade receivables increased from **HKD 81,603 thousands** as of December 31, 2024, to **HKD 84,232 thousands** as of June 30, 2025[37](index=37&type=chunk) - Interest payables significantly increased from **HKD 88,128 thousands** as of December 31, 2024, to **HKD 152,714 thousands** as of June 30, 2025, a **73.3%** increase[38](index=38&type=chunk) [Commitments and Contingent Liabilities](index=18&type=section&id=Commitments%20and%20Contingent%20Liabilities) The Group's project commitments significantly increased, while contingent liabilities substantially decreased, primarily related to repurchase guarantees provided to banks - Project commitments (contracted but unprovided property development expenditures and land acquisitions) increased from **HKD 273,600 thousands** as of December 31, 2024, to **HKD 359,000 thousands** as of June 30, 2025[56](index=56&type=chunk) - Total contingent liabilities significantly decreased from **HKD 280,600 thousands** as of December 31, 2024, to **HKD 145,700 thousands** as of June 30, 2025, primarily related to repurchase guarantees provided to banks[58](index=58&type=chunk) - The Group had no significant capital commitments at the end of both reporting periods[57](index=57&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) Management reviewed the Group's operating results for H1 2025, highlighting significant improvements in the property development business as the main reason for narrowed losses, while also detailing the Group's financial position, liquidity challenges, outlook on the Chinese real estate market, and proposed strategies [Business Review](index=19&type=section&id=Business%20Review) The Group's revenue significantly increased in H1 2025, with both loss before tax and loss attributable to owners of the Company substantially narrowing, primarily due to improvements in the property development business, despite finance costs remaining a major expense - The Group's revenue was approximately **HKD 35,600,000**, a significant increase from **HKD 13,500,000** in the same period of 2024[60](index=60&type=chunk) - Loss before tax was approximately **HKD 47,000,000**, narrowing from **HKD 93,700,000** in the same period of 2024[60](index=60&type=chunk) - Loss attributable to owners of the Company was approximately **HKD 52,500,000**, an improvement from **HKD 88,200,000** in the same period of 2024[60](index=60&type=chunk) [Segment Performance](index=19&type=section&id=Segment%20Performance) The property development segment achieved a significant turnaround from loss to profit in H1 2025, primarily driven by pre-sales progress of projects like De De Guo Cheng, Fu Yuan Jun Ting, and Fu Yuan Plaza; hotel business losses narrowed, but revenue remained flat - Property development segment revenue was approximately **HKD 35,000,000**, a significant increase from **HKD 11,900,000** in the same period of 2024[61](index=61&type=chunk) - The property development segment turned from a loss of **HKD 24,600,000** in the same period of 2024 to a profit of **HKD 18,300,000** in H1 2025[61](index=61&type=chunk) - The De De Guo Cheng project achieved **65.0%** of its total saleable area in sales contracts, with construction expected to be completed in October 2025[62](index=62&type=chunk) - Phases I and II of the Fu Yuan Jun Ting project achieved sales contracts of approximately **100%** and **88.1%** respectively[63](index=63&type=chunk) - The hotel business segment recorded **HKD 300,000** in sub-licensing income, flat year-on-year, with segment loss narrowing to **HKD 8,200,000**[66](index=66&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=21&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group's total interest-bearing borrowings decreased, but the total equity deficit significantly expanded, and the gearing ratio substantially increased due to reduced borrowings and equity, indicating severe liquidity pressure Capital Structure and Liquidity | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total interest-bearing borrowings | 1,703,200 | 1,804,100 | -5.6% | | Borrowings from financial institutions | 490,900 | 537,300 | -8.7% | | Borrowings from independent third parties | 854,000 | 912,700 | -6.5% | | Acceptance bills payable | 139,100 | 136,800 | 1.7% | | Other loans | 64,200 | 64,200 | 0.0% | | Amount due to a director | 155,000 | 153,100 | 1.2% | | Total equity (deficit) | (66,400) | (18,100) | 267.4% | - The Group's total equity deficit expanded from **HKD 18,100,000** as of December 31, 2024, to **HKD 66,400,000** as of June 30, 2025[70](index=70&type=chunk) - The gearing ratio significantly increased, primarily due to substantial interest-bearing borrowings for property development operations and a reduction in the Group's total equity during the period[70](index=70&type=chunk) [Pledge of the Group's Assets](index=22&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) Portions of the Group's leasehold land and buildings, along with restricted bank balances, have been pledged to financial institutions as collateral for loans and financing - Leasehold land and buildings with a carrying value of approximately **HKD 164,700,000** (December 31, 2024: **HKD 173,200,000**) have been pledged to financial institutions[74](index=74&type=chunk) - Restricted bank balances of approximately **HKD 1,000,000** (December 31, 2024: **HKD 100,800,000**) have been pledged to certain banks[74](index=74&type=chunk) [Staff Analysis](index=23&type=section&id=Staff%20Analysis) The Group's total number of employees decreased, and it will continue to implement human resource training and development programs - As of June 30, 2025, the Group employed a total of **70** staff, a decrease from **90** as of December 31, 2024[75](index=75&type=chunk) - The Group will continue to implement its overall human resource training and development programs to enhance employee knowledge, skills, and experience[75](index=75&type=chunk) [Prospects and Plans](index=23&type=section&id=Prospects%20and%20Plans) The Chinese real estate market faced severe pressure in H1 2025, with a gradual narrowing of year-on-year decline expected in H2, though the market remains sluggish; the Group will benefit from policy support, but market confidence recovery will take time - In H1 2025, China's overall economy faced severe pressure on property sales due to adverse factors such as weak domestic demand, a sluggish labor market, a stagnant real estate market, and low consumer sentiment[76](index=76&type=chunk) - The year-on-year decline in national new home sales is expected to gradually narrow in H2, but real estate investment may remain weak, and the market is still in a downturn[76](index=76&type=chunk) - Key policy directions include lowering mortgage interest rates, reducing transaction taxes and fees, and optimizing home purchase restrictions to stimulate demand for upgraded housing and drive market recovery[76](index=76&type=chunk) [Corporate Governance](index=23&type=section&id=Corporate%20Governance) The Group is committed to maintaining high standards of corporate governance and largely complies with the Corporate Governance Code in Appendix C1 of the Listing Rules, though the combined roles of Chairman and Chief Executive Officer constitute a deviation - The Company has applied and complied with the principles and applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Yang Lijun, which constitutes a deviation[77](index=77&type=chunk)[78](index=78&type=chunk) - Mr. Zeng Haobang was appointed as an independent non-executive director, chairman of the Nomination Committee, member of the Audit Committee, and member of the Remuneration Committee, effective June 4, 2025[79](index=79&type=chunk) - All directors confirmed compliance with the Model Code for Securities Transactions by Directors throughout the six months ended June 30, 2025[80](index=80&type=chunk) [Audit Committee and Review of Interim Results](index=25&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Company's Audit Committee has reviewed the Group's unaudited condensed consolidated financial information for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors[82](index=82&type=chunk) - The Audit Committee, the Company's auditor, and the Company's management have reviewed the Group's unaudited condensed consolidated financial information for the six months ended June 30, 2025[82](index=82&type=chunk) [Cautionary Statement](index=25&type=section&id=Cautionary%20Statement) The financial information contained in this announcement is unaudited and has not been agreed upon by the auditor; shareholders and potential investors are urged to exercise caution when dealing in the Company's securities - The financial information regarding the Group's interim results contained in this announcement is unaudited and has not been agreed upon by the auditor[84](index=84&type=chunk) - Shareholders and potential investors of the Company are urged to exercise caution when dealing in the Company's securities[84](index=84&type=chunk)

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) This section presents the company's interim financial performance, including income, comprehensive income, and financial position statements [Condensed Consolidated Income Statement](index=1&type=section&id=Condensed%20Consolidated%20Income%20Statement) The company's profit for the period significantly increased, primarily due to a substantial rise in net fair value changes of financial assets, despite a slight revenue decline | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 140,661 | 141,050 | -0.28% | | Gross Profit | 117,243 | 118,247 | -0.85% | | Other Income and Gains | 14,737 | 11,698 | +26.0% | | Net Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 207,503 | 90,627 | +128.97% | | Operating and Administrative Expenses | (17,161) | (18,630) | -7.99% | | Finance Costs | (27,635) | (34,925) | -20.99% | | Profit Before Tax | 294,667 | 167,012 | +76.43% | | Profit for the Period | 286,250 | 159,075 | +79.95% | | Profit for the Period Attributable to Owners of the Company | 238,382 | 128,541 | +85.45% | | Basic and Diluted Earnings Per Share | 28.51 HK cents | 15.37 HK cents | +85.50% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The company's total comprehensive income for the period grew substantially, driven by significant profit growth, with minimal impact from exchange differences | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 286,250 | 159,075 | +79.95% | | Exchange Differences on Translation of Overseas Operations | 26 | (186) | N/A | | Total Comprehensive Income for the Period | 286,276 | 158,889 | +80.18% | | Total Comprehensive Income for the Period Attributable to Owners of the Company | 238,410 | 128,402 | +85.68% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and net assets increased, with a notable rise in net current assets, primarily from financial assets at fair value and cash equivalents | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 11,152,524 | 11,153,960 | -0.01% | | Total Current Assets | 3,015,980 | 2,223,354 | +35.65% | | Total Current Liabilities | 1,091,953 | 539,875 | +102.26% | | Net Current Assets | 1,924,027 | 1,683,479 | +14.29% | | Total Assets Less Current Liabilities | 13,076,551 | 12,837,439 | +1.86% | | Total Non-Current Liabilities | 2,849,762 | 2,879,623 | -1.04% | | Net Assets | 10,226,789 | 9,957,816 | +2.70% | | Total Equity | 10,226,789 | 9,957,816 | +2.70% | | Financial Assets at Fair Value Through Profit or Loss | 1,191,652 | 1,004,358 | +18.65% | | Cash and Cash Equivalents | 963,178 | 388,261 | +148.08% | | Interest-Bearing Bank Borrowings (Current) | 798,594 | 248,594 | +221.25% | | Interest-Bearing Bank Borrowings (Non-Current) | 1,360,000 | 1,392,500 | -2.33% | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, accounting policies, segment information, and specific financial statement items for the interim period [Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) Interim financial statements are prepared in accordance with HKFRS 34 and HKEX Listing Rules, with consistent accounting policies and no material impact from new standards - Interim financial statements are prepared in compliance with Appendix D2 of the HKEX Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[7](index=7&type=chunk) - The first-time application of HKAS 21 (Amendment) "Lack of Exchangeability" in this period had no impact on the condensed consolidated interim financial statements[8](index=8&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The Group's operations are categorized into property investment, serviced apartment and property management, and trading and investment, with performance assessed by adjusted profit before tax - The Group's operations are divided into three reportable segments: property investment, provision of serviced apartments and property management services, and trading and investment[9](index=9&type=chunk)[11](index=11&type=chunk) - Segment performance is assessed based on adjusted profit before tax, excluding unallocated corporate expenses, bank interest income, share of results of investments accounted for using the equity method, other gains, and finance costs[9](index=9&type=chunk) Segment Revenue (External Customers) and Segment Results | Segment | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Segment Revenue (External Customers)** | | | | | Property Investment | 94,355 | 97,506 | -3.13% | | Provision of Serviced Apartments and Property Management Services | 15,385 | 16,313 | -5.79% | | Trading and Investment | 30,921 | 27,231 | +13.55% | | **Total Revenue** | 140,661 | 141,050 | -0.28% | | **Segment Results** | | | | | Property Investment | 80,358 | 83,253 | -3.50% | | Provision of Serviced Apartments and Property Management Services | (1,710) | (1,198) | +42.74% | | Trading and Investment | 236,972 | 116,788 | +103.09% | | **Total Segment Results** | 315,620 | 198,843 | +58.73% | Geographical Information (External Customer Revenue) | Region | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong (External Customer Revenue) | 66,604 | 63,722 | +4.52% | | Mainland China (External Customer Revenue) | 74,057 | 77,328 | -4.23% | | **Total External Customer Revenue** | 140,661 | 141,050 | -0.28% | [Revenue, Other Income and Gains](index=8&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) Total revenue slightly decreased due to lower rental and property management income, while other income and gains significantly increased from bank interest and government grants Revenue Sources | Revenue Source | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Provision of Serviced Apartments and Property Management Services | 15,385 | 16,313 | -5.79% | | Fixed Payment Rental Income from Investment Properties | 94,355 | 97,506 | -3.23% | | Dividend Income from Equity Investments in Listed Shares | 30,765 | 27,075 | +13.63% | | Interest Income from Debt Securities | 156 | 156 | 0.00% | | **Total Revenue** | 140,661 | 141,050 | -0.28% | Other Income and Gains | Other Income and Gains | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Government Grants and Subsidies | 3,983 | 3,283 | +21.32% | | Interest Income from Bank Deposits | 7,548 | 5,180 | +45.71% | | Interest Income from Amounts Due from Investments Accounted for Using the Equity Method | 361 | – | N/A | | Others | 2,845 | 3,235 | -12.06% | | **Total Other Income and Gains** | 14,737 | 11,698 | +26.0% | - Revenue from provision of serviced apartments and property management services is recognized monthly, as customers simultaneously receive and consume the benefits as the Group performs[16](index=16&type=chunk) [Profit Before Tax](index=9&type=section&id=Profit%20Before%20Tax) Profit before tax was primarily influenced by net foreign exchange gains and increased employee benefit expenses | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 1,408 | 1,278 | +10.17% | | Depreciation of Right-of-Use Assets | 160 | 4 | +3900.00% | | Foreign Exchange Differences, Net | (3,328) | (83) | +3909.64% | | Total Employee Benefit Expenses | 17,253 | 16,130 | +6.96% | [Finance Costs](index=9&type=section&id=Finance%20Costs) Interest on bank borrowings, the primary finance cost, saw a significant year-on-year decrease | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on Bank Borrowings | 27,635 | 34,925 | -20.99% | [Income Tax](index=10&type=section&id=Income%20Tax) Hong Kong income tax is 16.5% (8.25% for qualifying profits), Mainland China subsidiaries are taxed at 25%, and total income tax expense slightly increased - Hong Kong income tax is calculated at 16.5%, with the first HK$2 million of assessable profits for qualifying entities taxed at 8.25%[19](index=19&type=chunk) - Mainland China subsidiaries are subject to a 25% tax rate, while non-resident enterprises generally incur a 10% corporate income tax on income sourced within China[19](index=19&type=chunk) Total Income Tax Expense for the Period | Tax Source | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current Tax – Hong Kong | 2,317 | 1,443 | +60.57% | | Current Tax – Mainland China | 6,062 | 6,395 | -5.21% | | Current Tax – Malaysia | 38 | 99 | -61.62% | | **Total Tax Expense for the Period** | 8,417 | 7,937 | +6.05% | [Dividends](index=10&type=section&id=Dividends) The company declared a final dividend of HK 2 cents per ordinary share for 2024 and an interim dividend of HK 2 cents, consistent with the prior year Dividends Paid and Declared | Dividend Type | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Final Dividend Paid for 2024 (HK 2 cents per share) | 16,721 | 16,721 | | Interim Dividend Declared (HK 2 cents per share) | 16,721 | 16,721 | - The Board of Directors approved an interim dividend of HK 2 cents per ordinary share on August 28, 2025, to be dispatched on or about October 23, 2025[23](index=23&type=chunk) [Earnings Per Share](index=11&type=section&id=Earnings%20Per%20Share) Basic earnings per share significantly increased due to a substantial rise in profit attributable to ordinary equity holders, with no dilutive potential ordinary shares | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company (HK$ Thousand) | 238,382 | 128,541 | +85.45% | | Weighted Average Number of Ordinary Shares in Issue (Shares) | 836,074,218 | 836,074,218 | 0.00% | | **Basic and Diluted Earnings Per Share** | **28.51 HK cents** | **15.37 HK cents** | **+85.50%** | - The Group had no outstanding potential dilutive ordinary shares during the reporting period[26](index=26&type=chunk) [Trade Receivables](index=11&type=section&id=Trade%20Receivables) Trade receivables, mainly from property management and leasing, increased in total, with a notable rise in balances over three months old, and no collateral held - Trade receivables primarily consist of amounts due from property management services and leasing activities, where tenants are required to pay rent on the first day of the tenancy and provide a security deposit equivalent to 2-3 months' rent[27](index=27&type=chunk) - The Group does not hold any collateral or other credit enhancements for trade receivables balances[27](index=27&type=chunk) Trade Receivables Aging Analysis | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Trade Receivables | 6,611 | 5,572 | +18.65% | | Within 1 Month | 1,197 | 1,948 | -38.66% | | 1 to 2 Months | 283 | 700 | -59.57% | | 2 to 3 Months | 255 | 765 | -66.67% | | 3 to 12 Months | 4,483 | 1,765 | +153.99% | | Over 1 Year | 393 | 394 | -0.25% | [Trade Payables](index=12&type=section&id=Trade%20Payables) Trade payables are non-interest bearing and typically settled within sixty days, with the total amount significantly decreasing at period-end Trade Payables Aging Analysis | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Trade Payables (Within 1 Month) | 602 | 2,170 | -72.26% | - Trade payables are non-interest bearing and generally settled within a sixty-day period[29](index=29&type=chunk) [Suspension of Share Register](index=13&type=section&id=Suspension%20of%20Share%20Register) This section outlines the temporary suspension of share registration for determining interim dividend entitlements [Suspension of Share Register Details](index=13&type=section&id=Suspension%20of%20Share%20Register%20Details) Share registration will be suspended from September 15 to 17, 2025, to identify eligible shareholders for the interim dividend payable around October 23 - The share register will be suspended from September 15 to September 17, 2025, during which no share transfers will be registered[30](index=30&type=chunk) - The interim dividend will be paid to shareholders whose names appear on the register of members on September 17, 2025, with dispatch on or about October 23, 2025[30](index=30&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business and financial performance, including property and financial investments, liquidity, and human resources [Business Review](index=13&type=section&id=Business%20Review) The Group's business review covers property investment performance in Hong Kong and Mainland China, alongside significant gains from its financial investment portfolio - Property investment generated stable rental income in Hong Kong, but rental and management fee income from serviced apartments in Shanghai, China, decreased[31](index=31&type=chunk)[32](index=32&type=chunk) - The financial investment portfolio recorded significant net fair value gains and dividend income, primarily from Hong Kong-listed blue-chip stocks and exchange-traded funds[35](index=35&type=chunk) [Property Investment](index=13&type=section&id=Property%20Investment) The Group's Hong Kong investment properties generated stable rental income, while Shanghai's project maintained high occupancy but saw slightly reduced rental income, and Zhuhai projects faced demolition and compensation disputes - Hong Kong investment properties (office buildings, industrial buildings, retail shops, and car parks) generated stable rental income of approximately **HK$35 million**[31](index=31&type=chunk) - The "Windsor International" project in Shanghai, China, maintained an average occupancy rate of approximately **86%**, generating rental and management fee income of approximately **HK$74 million**, a year-on-year decrease of approximately **4%**[32](index=32&type=chunk) - Demolition progress for the Zhuhai Qianshan project is slow, and the Group has proposed planning adjustments to expedite the process[33](index=33&type=chunk) - The Zhuhai Doumen project faces disputes over land resumption compensation, and the Group has initiated administrative litigation against local government authorities[34](index=34&type=chunk) [Financial Investment](index=15&type=section&id=Financial%20Investment) The Group holds approximately HK$1.188 billion in highly liquid equity investments, primarily Hong Kong-listed blue-chip stocks and ETFs, recording significant fair value gains and dividend income Highly Liquid Equity Investments | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Highly Liquid Equity Investments | 1,188,000 | 980,000 | +21.22% | Equity Investment Performance | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Fair Value Gains from Equity Investments | 207,000 | 91,000 | +127.47% | | Dividend Income | 31,000 | 27,000 | +14.81% | - Key investments include Tracker Fund of Hong Kong, HSBC Holdings, Hang Seng China Enterprises Index ETF, Bank of China, China Mobile, China Life Insurance, and PetroChina, among other Hong Kong-listed blue-chip stocks and ETFs[36](index=36&type=chunk)[37](index=37&type=chunk) - Management will closely monitor equity investment performance and market conditions to mitigate financial risks and adjust the investment portfolio as appropriate[38](index=38&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) The Group's profit for the period surged by approximately 80% to HK$286 million, driven by substantial unrealized fair value gains and dividend income from equity investments Key Financial Performance Indicators | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 286,000 | 159,000 | +80% | | Rental and Property Management Services Income | 110,000 | 114,000 | -4% | | Unrealized Fair Value Gains from Equity Investments | 207,000 | 91,000 | +127% | | Dividend Income | 31,000 | 27,000 | +15% | [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=17&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[40](index=40&type=chunk) [Foreign Currency Risk](index=17&type=section&id=Foreign%20Currency%20Risk) The Group's primary foreign exchange risk is associated with RMB fluctuations, which management monitors closely, with no hedging instruments held at period-end - The Group's monetary assets, liabilities, and transactions are primarily denominated in RMB, HKD, USD, and MYR, with the main foreign exchange risk related to RMB[41](index=41&type=chunk) - Management will closely monitor the impact of RMB fluctuations on foreign exchange risk and hedge currency risk when appropriate[41](index=41&type=chunk) - As of June 30, 2025, the Group did not hold any financial instruments for foreign currency hedging purposes[42](index=42&type=chunk) [Liquidity and Financial Resources](index=18&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains ample liquidity, supported by internal cash flow and bank financing, with significant increases in highly liquid equity investments and cash equivalents - The Group funds its operations through internally generated cash flows and bank financing[43](index=43&type=chunk) Liquidity and Financial Resources Overview | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Highly Liquid Equity Investments | 1,188,000 | 980,000 | +21.22% | | Cash and Cash Equivalents | 963,000 | 388,000 | +148.20% | | Total Bank Borrowings | 2,159,000 | 1,641,000 | +31.57% | | Total Equity | 10,227,000 | 9,958,000 | +2.70% | | Gearing Ratio | 21% | 16% | +5 percentage points | - Bank borrowings are secured by legal charges over certain of the Group's investment properties in Hong Kong and Shanghai, and properties under development in Malaysia, primarily bearing floating interest rates[43](index=43&type=chunk) Bank Borrowings Maturity Profile | Bank Borrowings Maturity (HK$ Thousand) | June 30, 2025 | | :--- | :--- | | Within One Year | 592,500 | | In the Second Year | 280,000 | | In the Third to Fifth Year | 1,204,465 | | After Five Years | 81,629 | | **Total** | **2,158,594** | [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[46](index=46&type=chunk) [Commitments](index=18&type=section&id=Commitments) As of June 30, 2025, the Group had commitments of approximately HK$4 million for construction and land development expenditures, consistent with year-end 2024 Capital Commitments | Commitment Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Commitments for Construction and Land Development Expenditures | 4,000 | 4,000 | [Employees and Remuneration Policy](index=19&type=section&id=Employees%20and%20Remuneration%20Policy) The Group employs approximately 201 staff across four locations, with employee expenses around HK$17 million, and a remuneration policy based on performance, experience, and market conditions - As of June 30, 2025, the Group employed approximately **201** staff across Shanghai, Zhuhai, Hong Kong, and Malaysia[48](index=48&type=chunk) Employee Expenses | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Employee Expenses (Including Directors' Emoluments) | 17,000 | 16,000 | +6.25% | - The remuneration policy is determined based on employee performance, experience, and market conditions, and is reviewed annually, with directors not participating in decisions regarding their own remuneration[48](index=48&type=chunk) [Outlook](index=19&type=section&id=Outlook) This section provides the Group's forward-looking statements on property and financial investments, highlighting market challenges and strategic responses [Property Investment Outlook](index=19&type=section&id=Property%20Investment%20Outlook) The Group maintains a cautious outlook for property investment, anticipating weak demand in Hong Kong and stable income in Shanghai, while actively expanding overseas to diversify risk - Demand in Hong Kong's office and industrial building markets remains weak, potentially adversely affecting property valuations, and fluctuating HIBOR may increase borrowing costs[49](index=49&type=chunk) - Income from Shanghai, China, is expected to remain stable in 2025, but significant uncertainties persist regarding full-year financial performance[49](index=49&type=chunk) - The Group will continue to expand overseas investments, including Malaysian property development and land banking, to broaden its core business and diversify risks[49](index=49&type=chunk) [Financial Investment Outlook](index=19&type=section&id=Financial%20Investment%20Outlook) Despite strong first-half performance, global economic uncertainties may cause significant volatility in the financial investment portfolio, prompting a cautious investment strategy - Global financial markets are influenced by factors such as trade wars, interest rate trends, and geopolitical situations in Europe and the Middle East, which could lead to significant volatility in the listed securities portfolio in the second half of the year[50](index=50&type=chunk) - Management will continue to adopt a cautious investment strategy to ensure that core business operations are not affected by financial market risks[50](index=50&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers post-reporting period events, securities transactions, audit committee review, corporate governance, and board composition [Events After Reporting Period](index=20&type=section&id=Events%20After%20Reporting%20Period) As of the announcement date, no significant events have occurred after the reporting period that would materially impact the Group's operations and financial performance - As of June 30, 2025, and up to the date of this announcement, no significant events have occurred that could materially affect the Group's operations and financial performance[51](index=51&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[52](index=52&type=chunk) [Review by Audit Committee](index=20&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles, internal controls, financial reporting matters, and the unaudited interim results for the period - The Audit Committee has reviewed the Group's accounting principles, internal controls, and financial reporting matters, and has also reviewed the unaudited interim results for the six months ended June 30, 2025[53](index=53&type=chunk) [Corporate Governance Code](index=20&type=section&id=Corporate%20Governance%20Code) The company complied with the Corporate Governance Code during the reporting period, with an exception for directors' rotation to maintain strong and consistent leadership - The company has complied with the Corporate Governance Code set out in Part 2 of Appendix C1 to the Listing Rules throughout the reporting period, with the exception of the directors' rotation terms[54](index=54&type=chunk) - The Board believes that exempting the Chairman and Managing Director from the rotation terms is in the company's best interest to ensure strong and consistent leadership[54](index=54&type=chunk) [Standard Code for Securities Transactions by Directors](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code for Securities Transactions by Directors, and all directors confirmed compliance during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 to the Listing Rules, and all directors confirmed compliance during the reporting period[55](index=55&type=chunk) [Board of Directors](index=21&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises executive directors Mr Liu Chi Yung, Mr Liu Chi Keung, Ms Leung Wai Sang, and independent non-executive directors Mr Lo Man Lun, Mr Lo Kam Cheung, Mr Tsui Ka Wah, and Mr Ng Sing Yip - The company's executive directors are Mr Liu Chi Yung, Mr Liu Chi Keung, and Ms Leung Wai Sang[56](index=56&type=chunk) - The company's independent non-executive directors are Mr Lo Man Lun, Mr Lo Kam Cheung, Mr Tsui Ka Wah, and Mr Ng Sing Yip[56](index=56&type=chunk)

[Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) This section details the company's interim financial performance, including revenue, costs, and net profit or loss [Profit or Loss Overview](index=2&type=section&id=%E6%8D%9F%E7%9B%8A%E6%A6%82%E8%A7%88) The company shifted from profit to loss, primarily due to increased financial asset impairment and asset disposal losses Key Data from Interim Condensed Consolidated Statement of Profit or Loss | Indicator | June 30, 2025 (RMB Thousand) | June 30, 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 94,464 | 62,795 | 50.43% | | Cost of Sales | (80,317) | (45,603) | 76.12% | | Gross Profit | 14,147 | 17,192 | -17.71% | | Operating (Loss)/Profit | (4,564) | 2,777 | -264.35% | | (Loss)/Profit Before Income Tax | (5,888) | 270 | -2280.74% | | (Loss)/Profit for the Period | (5,579) | 750 | -843.87% | | (Loss)/Profit Attributable to Owners of the Company | (3,742) | 1,365 | -374.21% | | Basic (Loss)/Earnings Per Share (RMB) | (0.0025) | 0.0009 | -377.78% | - The company shifted from profit to loss, primarily due to an impairment provision of approximately **RMB 6,827 thousand** for trade and other receivables and other losses of approximately **RMB 1,600 thousand** from asset disposal[40](index=40&type=chunk) [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This section presents the company's total comprehensive income, reflecting both profit or loss and other comprehensive income items [Comprehensive Income Overview](index=3&type=section&id=%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E6%A6%82%E8%A7%88) Total comprehensive income for the period was a loss of RMB 4,686 thousand, an increase from the prior year, mainly due to increased loss and exchange differences Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | June 30, 2025 (RMB Thousand) | June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (5,579) | 750 | | Exchange Differences Arising from Translation of Financial Statements of Overseas Operations | 893 | (2,844) | | Total Comprehensive Income for the Period | (4,686) | (2,094) | | Total Comprehensive Income Attributable to Owners of the Company for the Period | (2,849) | (1,479) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This section provides an overview of the company's assets, liabilities, and equity at the end of the interim period [Assets and Liabilities Overview](index=5&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E6%A6%82%E8%A7%88) Total assets slightly decreased to RMB 1,059,243 thousand, while total liabilities also slightly reduced, with changes in non-current and current assets Key Data from Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 386,034 | 403,534 | -4.29% | | Total Current Assets | 673,209 | 665,114 | 1.22% | | Total Assets | 1,059,243 | 1,068,648 | -0.88% | | Total Equity | 803,307 | 807,993 | -0.58% | | Total Non-current Liabilities | 125,838 | 139,005 | -9.47% | | Total Current Liabilities | 130,098 | 121,650 | 7.09% | | Total Liabilities | 255,936 | 260,655 | -1.81% | | Total Equity and Liabilities | 1,059,243 | 1,068,648 | -0.88% | [Notes](index=6&type=section&id=%E9%99%84%E8%A8%BB) This section provides detailed explanatory notes to the interim condensed consolidated financial statements [1. General Information](index=6&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Xinda Investment Holdings Limited, listed on HKEX in 2012, primarily engages in smart energy and public construction businesses - The company was incorporated in the Cayman Islands on January 4, 2011, and listed on the Main Board of HKEX on January 12, 2012[8](index=8&type=chunk) - The Group primarily engages in smart energy and public construction businesses, gradually expanding into other clean energy and investment ventures[8](index=8&type=chunk)[39](index=39&type=chunk) - Mr. Wei Shaojun is the ultimate beneficial owner of the company[8](index=8&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read with the 2024 annual report - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[9](index=9&type=chunk) [3. Accounting Policies](index=6&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The Group adopted the same accounting policies as in 2024, with no significant impact from the IAS 21 amendment applied from January 1, 2025 - The Group has applied the same accounting policies as in the 2024 annual financial statements, with the first-time application of amendments to International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates" from January 1, 2025[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) - These amendments introduce new requirements for assessing currency convertibility and estimating spot exchange rates, but have no significant impact on the interim condensed consolidated financial statements[12](index=12&type=chunk)[14](index=14&type=chunk) [4. Revenue and Segment Information](index=7&type=section&id=4.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Revenue is primarily from smart energy and public construction businesses, with public construction showing significant growth while smart energy declined Revenue by Source | Revenue Source | June 30, 2025 (RMB Thousand) | June 30, 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sale of Electricity | 27,448 | 34,319 | -20.02% | | Sale of Household PV Systems and Provision of Smart Energy Services | 12,960 | 12,028 | 7.75% | | Public Construction | 54,056 | 16,448 | 228.65% | | **Total Revenue** | **94,464** | **62,795** | **50.43%** | - The Group's reportable segments are categorized by business type (products and services) into smart energy business and public construction business[15](index=15&type=chunk)[16](index=16&type=chunk) Revenue from External Customers by Segment | Segment | June 30, 2025 Revenue from External Customers (RMB Thousand) | June 30, 2024 Revenue from External Customers (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Smart Energy Business | 40,408 | 46,347 | -12.81% | | Public Construction Business | 54,056 | 16,448 | 228.65% | | **Total** | **94,464** | **62,795** | **50.43%** | [5. Other (Losses)/Gains, Net](index=9&type=section&id=5.%20%E5%85%B6%E4%BB%96%EF%BC%88%E虧%E6%90%8D%EF%BC%89%EF%BC%8F%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) The Group recorded net other losses of RMB 1,962 thousand, primarily due to a net loss of RMB 1,600 thousand from the disposal of property, plant, and equipment Details of Other (Losses)/Gains, Net | Indicator | June 30, 2025 (RMB Thousand) | June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Exchange (Losses)/Gains, Net | (181) | 552 | | Net Loss on Disposal of Property, Plant and Equipment | (1,600) | — | | Others | (181) | 8 | | **Total** | **(1,962)** | **560** | [6. Income Tax Credit](index=9&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D) Income tax credit decreased by 35.63% to RMB 309 thousand, mainly due to lower profits from the photovoltaic power station business Details of Income Tax Credit | Indicator | June 30, 2025 (RMB Thousand) | June 30, 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current Income Tax | (35) | (33) | 6.06% | | Deferred Income Tax | 344 | 513 | -32.94% | | **Total** | **309** | **480** | **-35.63%** | - The Group is exempt from income tax in the Cayman Islands and BVI, with no taxable profits in Hong Kong; PRC entities have a statutory tax rate of 25%, with some PV power station subsidiaries enjoying exemptions and reductions[19](index=19&type=chunk) [7. (Loss)/Earnings Per Share](index=10&type=section&id=7.%20%E6%AF%8F%E8%82%A1%EF%BC%88%E虧%E6%90%8D%EF%BC%89%EF%BC%8F%E7%9B%88%E9%A4%98) Basic loss per share was RMB 0.0025, a shift from earnings, primarily due to the loss for the period; diluted figures are not presented (Loss)/Earnings Per Share Data | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | (Loss)/Profit Attributable to Owners of the Company (RMB Thousand) | (3,742) | 1,365 | | Weighted Average Number of Ordinary Shares Issued (Thousand Shares) | 1,484,604 | 1,484,604 | | Basic (Loss)/Earnings Per Share (RMB) | (0.0025) | 0.0009 | - Diluted (loss)/earnings per share were not presented for the six months ended June 30, 2025 and 2024, as the exercise price of share options exceeded the average market price of the company's ordinary shares[21](index=21&type=chunk) [8. Trade and Other Receivables](index=11&type=section&id=8.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Total trade and other receivables were RMB 292,100 thousand, with increased loss allowance for trade receivables due to aging Total Trade and Other Receivables | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Receivables | 301,579 | 306,131 | | Electricity Price Subsidy Receivables | 177,910 | 166,765 | | Less: Loss Allowance for Trade Receivables | (253,771) | (252,466) | | Total Trade Receivables (Net) | 225,718 | 220,430 | | Total Trade and Other Receivables (Net) | 292,100 | 293,047 | - As of June 30, 2025, the right to collect trade receivables with a carrying amount of **RMB 156,418 thousand** from certain photovoltaic power stations was pledged as collateral for the Group's borrowings[22](index=22&type=chunk) Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 Year | 58,025 | 58,592 | | 1 to 2 Years | 51,678 | 38,367 | | 2 to 3 Years | 55,354 | 56,003 | | Over 3 Years | 314,432 | 319,934 | | **Total** | **479,489** | **472,896** | [8(c) Movement in Loss Allowance for Trade and Other Receivables](index=16&type=section&id=8(c)%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E虧%E6%90%8D%E6%92%A5%E5%82%99%E7%9A%84%E8%AE%8A%E5%8B%95) The loss allowance for trade and other receivables increased to RMB 254,328 thousand, driven by additional provisions and write-offs of unrecoverable amounts Movement in Loss Allowance for Trade and Other Receivables | Indicator | Six Months Ended June 30, 2025 (RMB Thousand) | Year Ended December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Beginning Balance | 253,023 | 225,749 | | Increase in Loss Allowance — Trade Receivables | 6,827 | 27,274 | | Written Off as Uncollectible — Trade Receivables | (5,522) | — | | **Ending Balance** | **254,328** | **253,023** | [9. Share Capital](index=16&type=section&id=9.%20%E8%82%A1%E6%9C%AC) The company's issued ordinary shares and share capital remained consistent with the prior year, with no share-based payment expenses incurred Share Capital Information | Indicator | June 30, 2025 (Thousand Shares/RMB Thousand) | December 31, 2024 (Thousand Shares/RMB Thousand) | | :--- | :--- | :--- | | Number of Issued Ordinary Shares (Thousand Shares) | 1,484,604 | 1,484,604 | | Equivalent RMB (RMB Thousand) | 12,255 | 12,255 | - As of June 30, 2025, **718,800** share options remained unexercised, with no share-based payment expenses recognized as part of employee benefit expenses during the period[35](index=35&type=chunk) [10. Trade and Other Payables](index=16&type=section&id=10.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Total trade and other payables increased by 29.89% to RMB 75,428 thousand, driven by increases in both trade payables and accrued expenses Total Trade and Other Payables | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 24,483 | 16,086 | 52.20% | | Accrued Expenses and Other Payables | 50,945 | 41,984 | 21.34% | | **Total** | **75,428** | **58,070** | **29.89%** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 Year | 10,663 | 241 | | Over 1 Year | 13,820 | 15,845 | | **Total** | **24,483** | **16,086** | [11. Dividends](index=17&type=section&id=11.%20%E8%82%A1%E6%81%AF) No dividends were declared to shareholders for the six months ended June 30, 2025, consistent with the prior year - No dividends were declared to shareholders for the six months ended June 30, 2025[38](index=38&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides management's perspective on the Group's financial performance, business operations, and future outlook [Overview](index=18&type=section&id=%E7%BB%BC%E8%BF%B0) The Group's revenue grew 50.43% to RMB 94,464 thousand, but a net loss of RMB 3,742 thousand was recorded, primarily due to impairment and asset disposal losses - The Group's principal businesses are smart energy and public construction, with gradual expansion into other clean energy and investment ventures[39](index=39&type=chunk) First Half Performance Overview | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 94,464 | 62,795 | 50.43% | | (Loss)/Profit Attributable to Owners of the Company | (3,742) | 1,365 | -374.21% | - The shift from profit to loss was mainly due to an impairment provision of approximately **RMB 6,827 thousand** for trade and other receivables and other losses of approximately **RMB 1,600 thousand** from asset disposal[40](index=40&type=chunk) [Business Review](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Smart energy revenue declined and incurred a loss due to policy and natural decay, while public construction revenue significantly grew and became profitable [Smart Energy Business](index=18&type=section&id=%E6%99%BA%E6%85%A7%E8%83%BD%E6%BA%90%E6%A5%AD%E5%8B%99) Smart energy revenue decreased by 12.81% to RMB 40,408 thousand, resulting in a loss due to power curtailment policies, natural decay, and asset disposal losses - The smart energy business primarily involves holding and operating photovoltaic power stations, including **11** ground-mounted and distributed PV power stations with approximately **64 MW** capacity, and approximately **18 MW** of household PV power stations[41](index=41&type=chunk) Smart Energy Business Performance | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Smart Energy Business Revenue | 40,408 | 46,347 | -12.81% | | Smart Energy Business (Loss)/Profit | (7,932) | 1,928 | -511.31% | - The revenue decline and shift to loss were mainly due to reduced power generation from domestic power curtailment policies and natural decay, coupled with losses from disposing of certain PV power station assets[42](index=42&type=chunk) [Public Construction Business](index=19&type=section&id=%E5%85%AC%E5%BB%BA%E5%BB%BA%E8%A8%AD%E6%A5%AD%E5%8B%99) Public construction revenue surged 228.65% to RMB 54,056 thousand, achieving a profit, driven by increased government repayments and project investments Public Construction Business Performance | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Public Construction Business Revenue | 54,056 | 16,448 | 228.65% | | Public Construction Business Profit | 4,886 | (9) | N/A | - The increase in revenue and profit was primarily due to higher government repayments and increased investment in the Baoding Donghu project during the period[43](index=43&type=chunk) [Business Outlook](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) The Group will maintain a prudent operating strategy, monitoring new energy pricing reforms and adjusting operations to ensure stable PV power station performance amidst industry challenges - In the first half of 2025, China's new PV installed capacity reached **212.21 GW**, a 107% YoY increase, but June's new installations sharply declined by 85% MoM to **14.36 GW**[44](index=44&type=chunk) - The industry faces challenges including low product prices, grid curtailment, pressure on corporate profitability, and intense market competition[44](index=44&type=chunk) - The Group will adhere to a prudent operating strategy, closely monitoring the implementation details of policies on market-oriented reform of new energy on-grid tariffs to assess impacts and adjust strategies for existing PV power stations[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [Financial Review](index=20&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Revenue grew 50.43% driven by public construction, but gross profit declined 17.71% due to smart energy issues, while administrative expenses and impairment losses increased [Revenue and Gross Profit](index=20&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%AF%9B%E5%88%A9) Revenue increased by 50.43% to RMB 94,464 thousand, driven by the Baoding Donghu project, but gross profit decreased by 17.71% due to PV power station curtailment Revenue and Gross Profit Data | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 94,464 | 62,795 | 50.43% | | Gross Profit | 14,147 | 17,192 | -17.71% | | Gross Profit Margin | 14.98% | 27.00% | -12.02% | - Revenue growth was primarily due to increased investment in the Baoding Donghu project; the decline in gross profit and margin was mainly due to reduced PV power station generation revenue from power curtailment policies while costs remained constant[47](index=47&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) No selling and distribution expenses were incurred during the period as the Group did not engage in household PV system sales Selling and Distribution Expenses Data | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | — | 10 | -100% | - No selling and distribution expenses were incurred during the period as the Group did not engage in household PV system sales[48](index=48&type=chunk) [Administrative Expenses](index=20&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by 16.38% to RMB 9,975 thousand, primarily due to higher management fees Administrative Expenses Data | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 9,975 | 8,571 | 16.38% | - The increase in administrative expenses was primarily due to higher management fees[49](index=49&type=chunk) [Impairment Loss on Financial Assets](index=20&type=section&id=%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E7%9A%84%E6%B8%9B%E5%80%BC%E虧%E6%90%8D) Impairment loss on financial assets increased by 5.01% to RMB 6,827 thousand, mainly due to increased bad debt provisions for aging receivables Impairment Loss on Financial Assets Data | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Impairment Loss on Financial Assets | 6,827 | 6,501 | 5.01% | - The increase in impairment loss was mainly due to increased bad debt provisions resulting from the aging of certain receivables[50](index=50&type=chunk) [Other (Losses)/Gains, Net](index=20&type=section&id=%E5%85%B6%E4%BB%96%EF%BC%88%E虧%E6%90%8D%EF%BC%89%EF%BC%8F%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) Net other losses of RMB 1,962 thousand were recorded, a shift from gains, primarily due to a RMB 1,600 thousand loss from asset disposal Other (Losses)/Gains, Net Data | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | | :--- | :--- | :--- | | Other (Losses)/Gains, Net | (1,962) | 560 | - The shift from gains to losses was primarily due to a loss of approximately **RMB 1,600 thousand** from the disposal of certain asset equipment of a power station[51](index=51&type=chunk) [Net Finance Costs](index=21&type=section&id=%E8%9E%8D%E8%B3%87%E9%96%8B%E6%94%AF%E6%B7%A8%E9%A1%8D) Net finance costs decreased by 47.19% to RMB 1,324 thousand, mainly due to reduced bank borrowing principal and lower interest rates Net Finance Costs Data | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 1,324 | 2,507 | -47.19% | - The decrease in net finance costs was primarily due to reduced bank borrowing principal and lower interest rates[52](index=52&type=chunk) [Income Tax Credit](index=21&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D) Income tax credit decreased by 35.63% to RMB 309 thousand, primarily due to lower profits from the photovoltaic power station business Income Tax Credit Data | Indicator | First Half 2025 (RMB Thousand) | First Half 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Credit | 309 | 480 | -35.63% | - The decrease in income tax credit was primarily due to lower profits from the photovoltaic power station business[53](index=53&type=chunk) [Liquidity, Financial and Capital Resources](index=21&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) Cash position improved, external borrowings decreased, and the Group maintains a healthy net cash position with no significant repayment risks [Cash Position](index=21&type=section&id=%E7%8F%BE%E9%87%91%E7%8B%80%E6%B3%81) Bank balances and cash increased to RMB 224,406 thousand, primarily due to increased government repayments for the Baoding Donghu project Cash Position Data | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank Balances and Cash | 224,406 | 221,468 | | Of which: Time Deposits with Original Maturity Over Three Months | 167,039 | 177,934 | | Of which: Restricted Cash | 13,084 | 1,885 | - The increase in bank balances and cash was primarily due to higher government repayments received for the Baoding Donghu project compared to the prior period[54](index=54&type=chunk) [Total Current Assets and Current Ratio](index=21&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E7%B8%BD%E9%A1%8D%E5%8F%8A%E6%B5%81%E5%8B%95%E6%AF%94%E7%8E%87) Total current assets slightly increased, but the current ratio decreased to 5.17 due to an increase in current liabilities Total Current Assets and Current Ratio Data | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Total Current Assets | 673,209 | 665,114 | | Current Ratio | 5.17 | 5.47 | - The increase in total current assets was mainly due to higher bank balances and cash and trade receivables, while the decrease in current ratio was due to increased current liabilities[55](index=55&type=chunk) [External Borrowings and Pledged Assets](index=22&type=section&id=%E5%A4%96%E9%83%A8%E5%80%9F%E6%AC%BE%E5%8F%8A%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) External borrowings decreased to RMB 119,450 thousand, fully secured by certain PV power station machinery and future receivables of subsidiaries External Borrowings Data | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | External Borrowings | 119,450 | 133,600 | - All external borrowings are secured by certain PV power station machinery with a carrying value of **RMB 198,210 thousand** and the right to collect future receivables of certain subsidiaries[56](index=56&type=chunk) [Gearing Ratio](index=22&type=section&id=%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The Group reported a net cash position of RMB 92,298 thousand, with a balanced long-term and short-term debt structure, indicating no significant repayment risks Gearing Ratio Calculation | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank Loans | 119,450 | 133,600 | | Net Cash | (92,298) | (75,069) | | Total Equity | 803,307 | 807,993 | | Total Capital | 711,009 | 732,924 | | Gearing Ratio | Not Applicable | Not Applicable | - As of June 30, 2025, the Group's net cash position was **RMB 92,298 thousand**, primarily because cash assets exceeded liabilities; with long-term and short-term debt at 49.17% and 50.83% respectively, the Group faces no significant repayment risks[57](index=57&type=chunk)[58](index=58&type=chunk) [Interest Rate Risk](index=22&type=section&id=%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA) Interest rate risk primarily stems from external borrowings at 4.94% to 5.18% per annum, with no significant impact expected on consolidated profit or loss - The Group's interest rate risk primarily arises from external borrowings, which bear interest at annual rates ranging from **4.94% to 5.18%**[59](index=59&type=chunk) - Borrowing rates for PV power stations are 10% to 15% above the People's Bank of China's benchmark lending rate, and this interest rate risk is not expected to have a significant impact on the Group's consolidated profit or loss[59](index=59&type=chunk) [Exchange Rate Risk](index=23&type=section&id=%E5%8C%AF%E7%8E%87%E9%A2%A8%E9%9A%AA) The Group's operations are primarily in China, denominated in RMB, with minimal foreign currency transactions and no specific foreign currency risk policy - The Group's principal operations are conducted in China, with transactions primarily denominated in RMB, which is not freely convertible into foreign currencies[60](index=60&type=chunk) - Due to minimal foreign currency denominated transactions during the period, the Group currently has no specific foreign currency risk policy, and foreign currency risk has a negligible impact on its operations[60](index=60&type=chunk) [Investment Commitments](index=23&type=section&id=%E6%8A%95%E8%B3%87%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no investment commitments - As of June 30, 2025, the Group had no investment commitments[61](index=61&type=chunk) [Contingent Liabilities](index=23&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[62](index=62&type=chunk) [Fund Raising Activities](index=23&type=section&id=%E9%9B%86%E8%B3%87%E6%B4%BB%E5%8B%95) The company did not undertake any fund-raising activities during the period - The company did not undertake any fund-raising activities during the period[63](index=63&type=chunk) [Material Acquisitions, Investments and Disposals](index=23&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E3%80%81%E6%8A%95%E8%B3%87%E5%8F%8A%E5%87%BA%E5%94%AE) The Group had no material acquisitions, investments, or disposals during the period - During the period, the Group had no material acquisitions, investments, or disposals[64](index=64&type=chunk)[65](index=65&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group had 44 employees with total staff costs of RMB 6,870 thousand, with remuneration based on various factors and including MPF or statutory social security contributions Employee and Remuneration Data | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 44 | 43 | | Total Staff Costs (RMB Thousand) | 6,870 | 7,024 | - Remuneration is determined based on job nature, individual qualifications, performance, work experience, and market trends, including MPF schemes or statutory social security contributions[66](index=66&type=chunk) [Post Balance Sheet Events](index=24&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The Group completed the disposal of Honghai 110KV Substation in Xinjiang for RMB 7 million in August 2025, with no other significant post-balance sheet events - In August 2025, the Group completed the disposal of the Honghai 110KV Substation and its right-of-use assets located in Hefeng Industrial Park, Hoboksar Mongol Autonomous County, Xinjiang, to an independent third party for a total consideration of **RMB 7 million**[67](index=67&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section outlines the company's adherence to corporate governance standards and other relevant disclosures [Compliance with Corporate Governance Code](index=24&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company maintains high corporate governance standards, complying with all applicable code provisions of the HKEX Listing Rules Appendix C1 - The company has complied with all applicable 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[68](index=68&type=chunk) - Executive Director Mr. Wei Qiang serves as both CEO and Chairman, an arrangement the Board believes enhances efficiency, with a high proportion of independent non-executive directors providing sufficient oversight[68](index=68&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=24&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Model Code for Securities Transactions by Directors, with all directors confirming compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with its provisions during the period[69](index=69&type=chunk) [Review of Interim Results](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E7%9A%84%E5%AF%A9%E9%96%B1) The interim consolidated financial information was reviewed by external auditors and the audit committee, confirming compliance with accounting and regulatory standards - The interim condensed consolidated financial information has not been audited but has been reviewed by the company's external auditor[70](index=70&type=chunk) - The Audit Committee, together with management, has reviewed the Group's unaudited interim condensed consolidated financial information for the period, confirming compliance with applicable accounting standards, HKEX, and legal requirements, with sufficient disclosures made[71](index=71&type=chunk) [Interim Dividends](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any interim dividends for the period, consistent with the prior year - The Board does not recommend the payment of any interim dividends for the period[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the period, holding no treasury shares - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period, nor does it hold any treasury shares[73](index=73&type=chunk) [Publication](index=25&type=section&id=%E5%88%8A%E7%99%BC) The interim results announcement is available on the HKEX and company websites, with the interim report to be dispatched to shareholders - The company's interim results announcement for the period has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.xindaholdings.com)[74](index=74&type=chunk)

[Definitions](index=3&type=section&id=%E9%87%8B%E7%BE%A9) This section defines key terms used throughout the report, including the reporting period, the Company, and the Group - The reporting period refers to the six months ended June 30, 2025[8](index=8&type=chunk) - The Company refers to Beijing Urban Construction Design & Development Group Co., Limited[7](index=7&type=chunk) - The Group or 'we' refers to the Company and its subsidiaries[7](index=7&type=chunk) [Company Information](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides fundamental details about the Company, including its official names, listing venue, registered address, and auditor Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | 北京城建設計發展集團股份有限公司 | | English Name | Beijing Urban Construction Design & Development Group Co., Limited | | H-share Listing Venue | The Stock Exchange of Hong Kong Limited | | Stock Code | 1599 | | Registered Address | No. 5 Fuchengmen North Street, Xicheng District, Beijing, China | | Legal Representative | Mr. Pei Hongwei | | Website | www.bjucd.com | | Auditor | Da Hua Certified Public Accountants (Special General Partnership) | [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Overview](index=6&type=section&id=%E6%A6%82%E8%BF%B0) In H1 2025, the Company's revenue and net profit declined, primarily due to a slowdown in urban rail transit construction investment, prompting active marketing and efficiency initiatives H1 2025 Operating Performance Summary | Indicator | H1 2025 (thousand yuan) | H1 2024 (thousand yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,586,319 | 4,178,988 | -14.19% | | Net Profit | 239,389 | 370,785 | -35.58% | - The urban rail transit construction industry continues to slow, prompting the Company to strengthen full-产业链 collaborative marketing around 10 national marketing centers, solidify its development foundation, and diligently promote quality and efficiency improvements[10](index=10&type=chunk) [Revenue](index=7&type=section&id=%E6%94%B6%E5%85%A5) The Group's H1 2025 revenue was **3.586 billion yuan**, a 14.19% YoY decrease, mainly due to fewer new engineering construction projects, with significant reductions in engineering contracting revenue [Revenue by Business Segment](index=7&type=section&id=%E5%90%84%E6%A5%AD%E5%8B%99%E6%9D%BF%E5%A1%8A%E6%94%B6%E5%85%A5) The Group's revenue primarily stems from design, survey, and consulting services and engineering contracting, with H1 2025 revenues of **1.993 billion yuan** and **1.593 billion yuan**, respectively Revenue by Business Segment (thousand yuan) | Product Area | 2025 | 2024 | | :--- | :--- | :--- | | Design, Survey, and Consulting Services | 1,993,527 | 2,017,527 | | Engineering Contracting Services | 1,592,792 | 2,161,461 | | Total | 3,586,319 | 4,178,988 | [Design, Survey, and Consulting Business Segment](index=7&type=section&id=%E8%A8%AD%E8%A8%88%E3%80%81%E5%8B%98%E5%AF%9F%E5%8F%8A%E8%AB%AE%E8%A9%A2%E6%A5%AD%E5%8B%99%E6%9D%BF%E5%A1%8A) The design, survey, and consulting business, a core segment, generated **1.993 billion yuan** in H1 2025, a 1.24% YoY decrease, with urban rail transit engineering revenue down 7.18% but industrial, civil, and municipal engineering revenue up 17.07% Design, Survey, and Consulting Business Segment Revenue (thousand yuan) | Business Type | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Design, Survey, and Consulting Segment Revenue | 1,993,527 | 2,017,527 | -1.24% | | Urban Rail Transit Engineering Segment Revenue | 1,410,000 | 1,519,000 | -7.18% | | Industrial and Civil Building and Municipal Engineering Segment Revenue | 583,000 | 498,000 | +17.07% | - In the rail transit sector, the Company won bids for key projects such as Chengdu Line 27 Phase II and Xiamen-Zhangzhou-Quanzhou Intercity Railway (Xiamen Section), and undertook network planning tasks for multiple cities[14](index=14&type=chunk) - Actively cultivating new businesses, expanding into emerging areas such as intelligent computing, photovoltaics, autonomous driving, water environment governance, urban renewal, and urban lifeline systems[14](index=14&type=chunk) [Engineering Contracting Business Segment](index=8&type=section&id=%E5%B7%A5%E7%A8%8B%E6%89%BF%E5%8C%85%E6%A5%AD%E5%8B%99%E6%9D%BF%E5%A1%8A) The engineering contracting business segment's H1 2025 revenue significantly decreased by **26.28%** to **1.593 billion yuan**, primarily due to fewer new construction projects, with successful bids concentrated in major cities like Beijing, Guangzhou, and Chongqing Engineering Contracting Business Segment Revenue (thousand yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Engineering Contracting Business Segment Revenue | 1,593,000 | 2,161,000 | -26.28% | - Won bids for Beijing R4 Line Phase I North Section, Hanyuan County Municipal Road Renovation Project in Sichuan Province, and Qingdao Metro Depot Photovoltaic EPC Project[15](index=15&type=chunk) - Ongoing engineering contracting projects are primarily concentrated in cities such as Beijing, Guangzhou, Chongqing, Urumqi, Nanjing, and Qingdao[15](index=15&type=chunk) [Operating Costs](index=8&type=section&id=%E7%87%9F%E6%A5%AD%E6%88%90%E6%9C%AC) The Group's H1 2025 operating costs were **2.893 billion yuan**, a 14.00% YoY decrease, reflecting cost reduction and efficiency gains, with design, survey, and consulting costs slightly up and engineering contracting costs down 24.36% Operating Costs (thousand yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Costs | 2,893,377 | 3,363,630 | -14.00% | | Design, Survey, and Consulting Segment Operating Costs | 1,418,000 | 1,413,000 | +0.35% | | Engineering Contracting Segment Operating Costs | 1,475,000 | 1,950,000 | -24.36% | - The Company achieved certain results in cost reduction and efficiency improvement by reasonably determining budget expenditure scale and strictly controlling non-essential and non-urgent expenses[16](index=16&type=chunk) [Gross Profit and Gross Margin](index=8&type=section&id=%E6%AF%9B%E5%88%A9%E5%92%8C%E6%AF%9B%E5%88%A9%E7%8E%87) The Group's H1 2025 gross profit was **693 million yuan**, a 14.97% YoY decrease, with the overall gross margin slightly down to **19.32%**, and both design, survey, and consulting and engineering contracting segments experiencing margin declines Gross Profit and Gross Margin (thousand yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Gross Profit | 692,942 | 815,358 | -14.97% | | Overall Gross Margin | 19.32% | 19.51% | -0.19% | | Design, Survey, and Consulting Segment Gross Profit | 575,000 | 604,000 | -4.80% | | Design, Survey, and Consulting Segment Gross Margin | 28.86% | 29.95% | -1.09% | | Engineering Contracting Segment Gross Profit | 118,000 | 211,000 | -44.08% | | Engineering Contracting Segment Gross Margin | 7.38% | 9.77% | -2.39% | - The decrease in gross margin for the design, survey, and consulting segment was primarily due to a reduced proportion of higher-margin rail transit business[17](index=17&type=chunk) [Selling Expenses](index=9&type=section&id=%E9%8A%B7%E5%94%AE%E8%B2%BB%E7%94%A8) H1 2025 selling expenses were **26.75 million yuan**, a 6.73% YoY decrease, attributed to strengthened collaborative development, integrated sales resources, and rational expenditure control Selling Expenses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 26.75 | 28.68 | -6.73% | - The decrease in selling expenses was mainly due to the Group's strengthened collaborative development, integrated sales resources, and rational expenditure control[18](index=18&type=chunk) [Administrative Expenses](index=9&type=section&id=%E7%AE%A1%E7%90%86%E8%B2%BB%E7%94%A8) H1 2025 administrative expenses were **223.21 million yuan**, a 2.01% YoY decrease, primarily due to the Company's enhanced budget management and strict control over non-operating expenditures Administrative Expenses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 223.21 | 227.80 | -2.01% | - The decrease in administrative expenses was mainly due to the Group's strengthened budget management and strict control over non-operating expenditures[19](index=19&type=chunk) [Research and Development Expenses](index=9&type=section&id=%E7%A0%94%E7%99%BC%E8%B2%BB%E7%94%A8) H1 2025 R&D expenses were **141.90 million yuan**, a 3.89% YoY decrease, primarily due to the Company's integration of internal R&D resources and improved resource utilization efficiency Research and Development Expenses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | R&D Expenses | 141.90 | 147.64 | -3.89% | - The decrease in R&D expenses was mainly due to the Group's integration of internal R&D resources and improved resource utilization efficiency[20](index=20&type=chunk) [Financial Expenses](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) H1 2025 financial expenses were **-55.30 million yuan**, an 8.26% YoY decrease, primarily due to lower borrowing interest rates and reduced interest expenses Financial Expenses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Financial Expenses | -55.30 | -51.08 | -8.26% | | Interest Expense | 119.79 | 141.44 | -15.24% | | Interest Income | 180.98 | 197.66 | -8.44% | - The decrease in financial expenses was mainly due to lower borrowing interest rates, leading to reduced interest expenses[21](index=21&type=chunk) [Investment Income](index=9&type=section&id=%E6%8A%95%E8%B3%87%E6%94%B6%E7%9B%8A) H1 2025 investment income was **44.27 million yuan**, a 37.95% YoY decrease, primarily due to reduced net profit from joint ventures and associates Investment Income (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Investment Income | 44.27 | 71.35 | -37.95% | - The decrease in investment income was mainly due to reduced net profit from joint ventures and associates[22](index=22&type=chunk) [Credit Impairment Losses](index=9&type=section&id=%E4%BF%A1%E7%94%A8%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1) H1 2025 credit impairment losses were **18.32 million yuan**, a 62.19% YoY decrease, primarily due to intensified collection efforts and recovery of some long-aged accounts receivable Credit Impairment Losses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Credit Impairment Losses | 18.32 | 48.45 | -62.19% | - The decrease in credit impairment losses was mainly due to intensified collection efforts and the recovery of some long-aged accounts receivable[23](index=23&type=chunk) [Asset Impairment Losses](index=9&type=section&id=%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1) H1 2025 asset impairment losses increased by **44.55%** to **75.83 million yuan**, primarily due to an increase in long-aged contract assets and the corresponding impairment provisions Asset Impairment Losses (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Asset Impairment Losses | 75.83 | 52.46 | +44.55% | - The increase in asset impairment losses was mainly due to an increase in long-aged contract assets, leading to impairment provisions[24](index=24&type=chunk) [Income Tax Expense](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) H1 2025 income tax expense was **52.44 million yuan**, a 13.08% YoY decrease, primarily due to a reduction in current income tax expense Income Tax Expense (million yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 52.44 | 60.33 | -13.08% | - The decrease in income tax expense was mainly due to a reduction in current income tax expense[25](index=25&type=chunk) [Net Profit](index=10&type=section&id=%E6%B7%A8%E5%88%A9%E6%BD%A4) In H1 2025, the Group's net profit was **239 million yuan**, representing a 35.58% year-on-year decrease Net Profit (billion yuan) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Profit | 0.239 | 0.371 | -35.58% | [Cash Flow](index=10&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) In H1 2025, the Group reported net cash outflows of **1.04 billion yuan** from operating activities, **24 million yuan** from investing activities, and **124 million yuan** from financing activities, resulting in a net decrease of **1.188 billion yuan** in cash and cash equivalents Cash Flow (thousand yuan) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Outflow from Operating Activities | (1,039,803) | (721,076) | | Net Cash Outflow from Investing Activities | (24,416) | (87,615) | | Net Cash Outflow from Financing Activities | (123,581) | (263,928) | | Net Decrease in Cash and Cash Equivalents | (1,187,800) | (1,072,619) | - The increase in net cash outflow from operating activities was mainly due to operating cash receipts being less than operating cash payments during the period[27](index=27&type=chunk) - The decrease in net cash outflow from financing activities was mainly due to a net increase of **29 million yuan** in the Company's short-term bank borrowings and interest expenses of approximately **101 million yuan** repaid during the year[27](index=27&type=chunk) [Asset Pledges](index=10&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC%E6%83%85%E6%B3%81) As of June 30, 2025, the Group's contract assets, accounts receivable, and intangible assets were pledged as collateral for bank loans, with a net value of **6,321 million yuan** Net Pledged Assets (million yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Pledged Receivables and Intangible Assets | 6,321 | 6,224 | - Pledged assets include contract assets, accounts receivable, and intangible assets, used as collateral for bank loans[28](index=28&type=chunk) [Contingent Liabilities](index=10&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no other significant contingent liabilities - As of June 30, 2025, the Group had no other significant contingent liabilities[29](index=29&type=chunk) [Capital Commitments](index=11&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E6%83%85%E6%B3%81) As of June 30, 2025, the Group's contracted but unprovided capital commitments, primarily for property, plant, and equipment and equity investments, totaled approximately **1.239 billion yuan** Capital Commitments (thousand yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property, Plant, and Equipment | 146,998 | 150,149 | | Equity Investments | 1,092,871 | 1,083,871 | | Total | 1,239,869 | 1,234,020 | [Capital Structure and Financial Resources](index=11&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B%E8%88%87%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's equity capital consists mainly of domestic and H shares, while debt capital primarily comprises bank and other borrowings; as of June 30, 2025, net current assets were **2.424 billion yuan**, cash and cash equivalents were **1.855 billion yuan**, and the asset-liability ratio was **82.99%** Capital Structure and Financial Resources Overview | Indicator | June 30, 2025 (yuan) | | :--- | :--- | | Net Current Assets | 2,424 million yuan | | Cash and Cash Equivalents | 1,855 million yuan | | Interest-bearing Borrowings | 6.658 billion yuan | | Asset-Liability Ratio | 82.99% | - The Group maintains a healthy liquidity position with diverse financing options and channels, including available bank financing, to meet its operational needs[31](index=31&type=chunk) [Debt Situation](index=12&type=section&id=%E5%82%B5%E5%8B%99%E6%83%85%E6%B3%81) As of June 30, 2025, the Group's total borrowings amounted to **6.658 billion yuan**, with pledged bank loans constituting the largest portion, and long-term debt maturing in over five years representing the highest proportion of total debt maturities Total Borrowings (thousand yuan) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Borrowings (Pledged) | 4,674,212 | 4,757,366 | | Bank Borrowings (Unpledged and Unsecured) | 542,602 | 429,529 | | Other Borrowings (Unpledged and Unsecured) | 1,176,699 | 1,164,314 | | Lease Liabilities (Unpledged and Unsecured) | 264,216 | 267,628 | | Total | 6,657,729 | 6,618,837 | Debt Maturity Profile (thousand yuan) | Maturity Date | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within One Year | 1,731,843 | 1,599,023 | | Second Year | 385,909 | 450,593 | | Third to Fifth Year | 1,199,502 | 2,464,499 | | Over Five Years | 3,340,475 | 2,104,722 | | Total | 6,657,729 | 6,618,837 | - Borrowings are denominated in RMB, with interest rates ranging from **1.81% to 4.90%**[33](index=33&type=chunk) [Significant Investments](index=13&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group made a significant investment of **2.098 billion yuan** in Yunnan Jingjian Rail Transit Investment and Construction Co., Ltd., representing **8.9%** of total assets, to enhance profitability, expand market reach, and integrate the industrial chain Significant Investment Details | Company Name | Main Business | Equity Held (%) | Investment Cost (thousand yuan) | Current Period Investment Income (thousand yuan) | | :--- | :--- | :--- | :--- | :--- | | Yunnan Jingjian Rail Transit Investment and Construction Co., Ltd. | Construction management, operation, and related development of Kunming Rail Transit Line 4 | 78.28% | 1,634,327 | 36,545 | - Investing in Yunnan Jingjian Rail Transit Investment and Construction Co., Ltd. is beneficial for enhancing the Company's profitability, market expansion, and industrial chain integration[35](index=35&type=chunk) [Exchange Rate Risk](index=13&type=section&id=%E5%BD%99%E7%8E%87%E9%A2%A8%E9%9A%AA) The Group primarily operates in China, with most transactions settled in RMB, resulting in minimal exchange rate risk related to USD and HKD, which is not expected to have a material adverse effect on its financials - The Group primarily conducts its business in China, with most transactions settled in RMB[36](index=36&type=chunk) - Assets, liabilities, and operating transactions involving exchange rate risk are mainly related to USD and HKD[36](index=36&type=chunk) - The Directors believe that the Group's exchange rate risk is not significant and will not have a material adverse effect on the Group's financial position[36](index=36&type=chunk) [Bidding Performance](index=14&type=section&id=%E4%B8%AD%E6%A8%99%E6%83%85%E6%B3%81) As of June 30, 2025, the Company secured bids totaling **2.541 billion yuan**, with **1.367 billion yuan** from design, survey, and consulting services and **1.174 billion yuan** from engineering contracting services Bidding Performance (billion yuan) | Business Type | Bid Amount | | :--- | :--- | | Design, Survey, and Consulting | 1.367 | | Engineering, Procurement, and Construction | 1.174 | | Total | 2.541 | - Design, survey, and consulting projects are primarily located in Beijing, Nanjing, Xiamen, Chengdu, Qingdao, Zhengzhou, and other regions[37](index=37&type=chunk) - Engineering, procurement, and construction projects are primarily located in Beijing, Lhasa, Qingdao, and other regions[37](index=37&type=chunk) [Employees](index=14&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group had approximately **4,629 employees**, a 6% decrease from the previous year, while the proportion of senior-titled employees increased by 3% to **44%** Employee Structure | Indicator | June 30, 2025 | | :--- | :--- | | Total Employees | 4,629 | | Senior Title Holders | 44% | | Intermediate Title Holders | 37% | | Junior Title Holders and Below | 19% | - The number of employees decreased by **6%** compared to the end of the same period last year[38](index=38&type=chunk) - The proportion of senior-titled employees increased by **3%**[38](index=38&type=chunk) [Events After the Reporting Period](index=14&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8%E6%97%A5%E5%BE%8C%E4%BA%8B%E9%A0%85) The Group had no significant events after the reporting period - The Group had no significant events after the reporting period[39](index=39&type=chunk) [Profit Distribution and Dividends](index=14&type=section&id=%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E5%8F%8A%E8%82%A1%E6%81%AF) The Group currently does not plan to distribute interim profits or pay interim dividends - The Group currently does not plan to distribute interim profits or pay interim dividends[40](index=40&type=chunk) [Company Management Measures for H2 2025](index=14&type=section&id=2025%E5%B9%B4%E4%B8%8B%E5%8D%8A%E5%B9%B4%E5%85%AC%E5%8F%B8%E7%AE%A1%E7%90%86%E6%8E%AA%E6%96%BD) In H2 2025, the Company will continue to focus on "market expansion, reform and innovation, and quality and efficiency improvement" to stabilize the design and consulting market, promote scaled development of engineering contracting, accelerate breakthroughs in new businesses, and strengthen enterprise management to improve cash flow and profitability [Stabilize Design and Consulting Market Scale](index=15&type=section&id=%E7%A9%A9%E4%BD%8F%E8%A8%AD%E8%A8%88%E8%AB%AE%E8%A9%A2%E5%B8%82%E5%A0%B4%E8%A6%8F%E6%A8%A1) The Company will leverage its network of ten marketing centers to closely monitor urban rail transit construction plans, expand into new areas like existing line renovation, urban renewal, and new energy development, and deepen its focus on high-end consulting and differentiated development in civil and municipal engineering - Rely on the network of ten marketing centers and full-产业链 collaborative efforts to closely monitor the progress of urban rail transit construction planning approvals in various regions[42](index=42&type=chunk) - Expand into new businesses such as existing line renovation, urban renewal, new energy development, digital intelligence, and urban lifeline systems[42](index=42&type=chunk) - Deepen efforts in segmented markets like evaluation and review, cost consulting, passenger flow enhancement consulting, and whole-process consulting, while pursuing differentiated and specialized development in civil and municipal engineering businesses[42](index=42&type=chunk) [Promote Scaled Development of Engineering Contracting](index=15&type=section&id=%E6%8E%A8%E5%8B%95%E5%B7%A5%E7%A8%8B%E7%B8%BD%E6%89%BF%E5%8C%85%E8%A6%8F%E6%A8%A1%E5%8C%96%E7%99%BC%E5%B1%95) The Company will focus on project management, strengthen production factor guarantees, ensure high-quality execution of ongoing projects, closely track key urban rail transit projects, and enhance collaborative marketing for EPC business to secure more project implementations - Focus on project management, strengthen production factor guarantees, and ensure high-quality execution of ongoing projects[43](index=43&type=chunk) - Closely follow urban rail transit projects in cities such as Beijing, Xuzhou, Guangzhou, Shenzhen, and Xi'an, and strive to achieve annual marketing targets[43](index=43&type=chunk) - Strengthen collaborative marketing for EPC business to facilitate the implementation of more projects, making it a new pillar for the Company's scaled development[43](index=43&type=chunk) [Accelerate Breakthrough in New Businesses, Fully Cultivate New Business Development](index=15&type=section&id=%E5%8A%A0%E9%80%9F%E6%96%B0%E6%A5%AD%E5%8B%99%E7%A0%B4%E5%B1%80%EF%BC%8C%E5%85%A8%E5%8A%9B%E5%9F%B9%E8%82%B2%E7%99%BC%E5%B1%95%E6%96%B0%E6%A5%AD%E5%8B%99) The Company will accelerate the market function of technological industrialization, build a complete business development chain from "product to market to delivery," facilitate the application of existing products, and specifically target industrialization platforms such as existing line renovation, urban renewal, green and low-carbon initiatives, urban lifeline systems, and the low-altitude economy - Accelerate the market function of technological industrialization, building a complete business development chain from "product end, market end, to delivery end"[44](index=44&type=chunk) - Seize industrialization opportunities in existing line renovation, urban renewal, green and low-carbon initiatives, urban lifeline systems, and the low-altitude economy[44](index=44&type=chunk) - Drive the implementation of products such as energy storage, photovoltaic sound barriers, urban simulation platforms, intelligent hazard identification models, and industrialized interior decoration[44](index=44&type=chunk) [Focus on Strengthening Enterprise Management](index=16&type=section&id=%E8%81%9A%E7%84%A6%E7%AE%A1%E7%90%86%E5%BC%B7%E4%BC%81) The Company will continuously improve cash flow, strengthen collection efforts, reduce the outstanding balance of "two funds" (receivables and inventories), and enhance overall profitability through refined management, cost reduction, efficiency improvement, and informatization, thereby establishing a positive image in the capital market - Continuously improve cash flow, firmly anchor collection targets, strengthen collection scheduling, enforce responsibility for arrears, and fully ensure the security of the capital chain[45](index=45&type=chunk) - Focus on reducing the scale of completed but unsettled projects, intensify efforts in project confirmation and settlement, promote key project settlements within the year, and achieve continuous reduction in the outstanding balance of "two funds"[45](index=45&type=chunk) - Implement refined management, reduce costs and increase efficiency, and enhance informatization to comprehensively improve profitability; ensure proper information disclosure and establish a positive image in the capital market[45](index=45&type=chunk) [Market Environment and Business Outlook](index=16&type=section&id=%E5%B8%82%E5%A0%B4%E7%92%B0%E5%A2%83%E5%8F%8A%E6%A5%AD%E5%8B%99%E5%89%8D%E6%99%AF) National policies continue to support data infrastructure, rural revitalization, urban renewal, sports industry, and integrated development of transportation and energy, offering broad prospects for the Company's business, while the urban rail transit industry transitions from high-speed growth to high-quality development, presenting opportunities and challenges for intelligent and green transformation across various engineering fields [Urban Rail Transit](index=17&type=section&id=%E5%9F%8E%E5%B8%82%E8%BB%8C%E9%81%93%E4%BA%A4%E9%80%9A) As of June 30, 2025, mainland China had **58 cities** operating **12,381.48 kilometers** of urban rail transit lines, with **220.70 kilometers** added in H1, as the industry shifts from rapid expansion to high-quality development, emphasizing technological innovation, standard system construction, and operational efficiency Urban Rail Transit Operations in Mainland China | Indicator | June 30, 2025 | | :--- | :--- | | Number of Operating Cities | 58 | | Total Length of Operating Lines | 12,381.48 kilometers | | New Operating Lines in H1 | 220.70 kilometers | - The Ministry of Transport revised the "Administrative Measures for Urban Rail Transit Operation Organization" and "Administrative Measures for Urban Rail Transit Passenger Organization and Service," improving institutional norms[48](index=48&type=chunk) - The industry faces multiple challenges and opportunities, including existing asset optimization, intelligent transformation, green and low-carbon development, regional integration, and internationalization[48](index=48&type=chunk) [Collaborative Innovation in Rail Transit Construction](index=18&type=section&id=%E8%BB%8C%E9%81%93%E4%BA%A4%E9%80%9A%E5%8D%94%E5%90%8C%E5%89%B5%E6%96%B0%E5%BB%BA%E8%A8%AD) The Company continues to drive technological innovation in rail transit, with multiple projects receiving national science and technology awards and undertaking major research initiatives, focusing on future innovations in high-quality underground infrastructure construction, pipeline renewal, lifeline monitoring, and vehicle-road-cloud integration - The Company's projects, such as "Key Technologies and Applications for Efficient Operation and Control of Ultra-large-scale Metro Networks," received special, first, and second prizes in the 2024 China Transportation Association Science and Technology Progress Awards[49](index=49&type=chunk) - Undertakes major research projects including the Ministry of Science and Technology's Xiong'an Innovation Special Program, the Ministry of Housing and Urban-Rural Development's scientific research special program, and provincial science and technology special programs[49](index=49&type=chunk) - Future innovations will focus on high-quality underground infrastructure construction, underground pipeline renewal, lifeline monitoring, and vehicle-road-cloud integration[49](index=49&type=chunk) [Surveying and Mapping](index=18&type=section&id=%E5%8B%98%E5%AF%9F%E6%B8%AC%E9%87%8F) The surveying and mapping industry is experiencing accelerated technological updates, with increasing adoption of high-precision equipment and software, and is transitioning towards intelligent and digital transformation, relying on drone aerial photography, 3D laser scanning, BIM, and integrating cloud platforms and big data analytics to provide comprehensive solutions - The pace of technological updates for high-precision surveying equipment and software is accelerating, with some enterprises focusing on the R&D and production service system construction of high-precision surveying and mapping equipment[50](index=50&type=chunk) - Future surveying and mapping technology will rapidly transform towards smart platforms, surveying big data, "one city map," and other new surveying services[51](index=51&type=chunk) - The surveying and mapping industry will increasingly rely on intelligent and digital technologies, as well as the application of drone aerial photography, 3D laser scanning, and BIM technologies[51](index=51&type=chunk) [Investment and Construction](index=19&type=section&id=%E6%8A%95%E8%B3%87%E5%BB%BA%E8%A8%AD) The nation is deepening efforts to resolve local government debt risks and strictly control new hidden debts, while expanding social capital participation in key projects; the standardized upgrade of the concession model and continued advancement of "three major projects" (affordable housing, urban village renovation, and metropolitan rail transit) present core opportunities for investment and construction businesses - The Standing Committee of the National People's Congress approved an increase of **6 trillion yuan** in local government debt limits to replace existing hidden debts, and clarified that **800 billion yuan** in special bonds will be allocated annually from 2024-2028 for debt resolution[52](index=52&type=chunk) - The concession model is undergoing standardized upgrades, encouraging integrated "investment + operation" models for cultural tourism and smart transportation projects[52](index=52&type=chunk) - The "three major projects" continue to advance, including affordable housing, urban village and underground pipeline renovation, and accelerated metropolitan rail transit development[53](index=53&type=chunk) [Planning and Design](index=20&type=section&id=%E8%A6%8F%E5%8A%83%E8%A8%AD%E8%A8%88) Urban renewal, national spatial planning, refined control planning, low-carbon intelligence, and regional coordination have become core directions for urban planning development, with the market continuously expanding and diversifying, transitioning from traditional models to intelligent and green approaches - Urban renewal, national spatial planning, refined control planning, low-carbon intelligence, and regional coordination have become the core directions for urban planning development[55](index=55&type=chunk) - Funding support is expanding, demonstration cities are increasing, emphasizing social capital participation; "multi-plan integration" is strengthened to optimize land use and improve living quality[55](index=55&type=chunk) - China's urban planning industry is undergoing a critical transition from traditional models to intelligent and green approaches, with continuous market expansion and diversified competition[55](index=55&type=chunk) [Architectural Design](index=20&type=section&id=%E5%BB%BA%E7%AF%筑%E8%A8%AD%E8%A8%88) The nation continues to advance urban renewal, emphasizing infrastructure construction and renovation, including old residential areas, urban villages, and infrastructure projects; while real estate development investment and construction area have declined YoY, government signals are positive, with policies expected to accelerate in H2 to stabilize the real estate market - The Ministry of Housing and Urban-Rural Development emphasized the need to solidly advance urban renewal work, implementing projects that benefit people's livelihoods, promote development, and prevent risks[56](index=56&type=chunk) National Real Estate Development Investment and Construction Area, January-June 2025 (billion yuan) | Indicator | Amount/Area | YoY Decrease | | :--- | :--- | :--- | | Real Estate Development Investment | 4,665.8 billion yuan | 11.2% | | Residential Investment | 3,577.0 billion yuan | 10.4% | | Housing Construction Area | 6,333.21 million square meters | 9.1% | | Residential Construction Area | 4,412.40 million square meters | 9.4% | | New Housing Starts Area | 303.64 million square meters | 20.0% | | New Residential Starts Area | 222.8 million square meters | 19.6% | - It is expected that in H2 2025, governments at all levels will fully promote the implementation of existing policies to a greater extent, driving the real estate market to stop falling and stabilize[57](index=57&type=chunk) [Engineering, Procurement, and Construction (EPC)](index=21&type=section&id=%E5%B7%A5%E7%A8%8B%E7%B8%BD%E6%89%BF%E5%8C%85) China's urban rail transit investment and new mileage are declining, with the industry entering a high-quality development stage; market opportunities are concentrated in network improvements in core city clusters, intercity (suburban) railways, existing line renovation, and intelligent, green construction technologies, while the Company will focus on Beijing as its foundation and deeply target three national strategic regions - In 2025, urban rail investment plans show a **28.59%** YoY decline, with the domestic rail market entering a high-quality development stage characterized by "seeking progress while maintaining stability, optimizing existing assets, regional focus, technological upgrading, refined management, and diversified integration"[58](index=58&type=chunk) - Core market opportunities are mainly concentrated in network improvements, intercity (suburban) railways, and existing line renovation in core city clusters such as Beijing-Tianjin-Hebei, Yangtze River Delta, Greater Bay Area, and Chengdu-Chongqing[58](index=58&type=chunk) - The Company will use the Beijing market as its foundation, deeply focus on the three national strategic regions of the Yangtze River Delta, Greater Bay Area, and Western Triangle (Chengdu-Chongqing), and actively deploy in the rail transit construction market[58](index=58&type=chunk) [Municipal Public Works](index=22&type=section&id=%E5%B8%82%E6%94%BF%E5%85%AC%E7%94%A8%E5%B7%A5%E7%A8%8B) The Central Urban Work Conference clarified the shift in urban development from incremental expansion to qualitative improvement, making urban renewal a key focus for municipal engineering; the sector is accelerating its transition to green construction and sustainable development, moving towards digitalization and intelligence - The Central Urban Work Conference clarified that urban development is shifting from incremental expansion to qualitative improvement, making urban renewal a key focus for municipal engineering in 2025[59](index=59&type=chunk) - The municipal engineering sector is accelerating its transition to green construction and sustainable development models, with green building materials, energy-saving technologies, and renewable energy applications becoming important components[59](index=59&type=chunk) - The development of smart cities is driving municipal engineering towards digitalization and intelligence, enabling full lifecycle management of municipal facilities[59](index=59&type=chunk) [Industrialization of Technology](index=22&type=section&id=%E7%A7%91%E6%8A%80%E7%94%A2%E6%A5%AD%E5%8C%96) The government work report emphasizes deep integration of scientific and technological innovation with industrial innovation to foster emerging industries; traditional infrastructure must seize opportunities from the new technological revolution, focusing on low-altitude economy, green energy, and digital intelligence, to deepen collaborative innovation and build a globally competitive modern transportation industry ecosystem - The 2025 government work report explicitly proposes the strategic direction of "promoting the deep integration of scientific and technological innovation with industrial innovation, and accelerating the cultivation and growth of emerging and future industries"[60](index=60&type=chunk) - The traditional infrastructure industry must seize the major historical opportunities of the new round of global technological revolution and industrial transformation, focusing on emerging fields such as the low-altitude economy, green energy, cultural tourism industry, digitalization, and informatization[60](index=60&type=chunk) - Deepen cross-industry, cross-department, and cross-regional collaborative innovation, tackle key core technologies, promote industrial application demonstrations, and build a modern transportation industry ecosystem with international competitiveness[60](index=60&type=chunk) [Other Information](index=23&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Interests of Directors, Supervisors, and Chief Executives in Shares](index=23&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E5%8F%8A%E6%8C%81%E6%9C%89%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A) As of June 30, 2025, Mr. Li Guoqing, Vice Chairman and Non-executive Director, held **48,000 H shares** (long position), representing approximately **0.01%** of the issued H share capital; additionally, Mr. Li Guoqing and Mr. Xia Xiujiang participated in the employee share ownership plan Shareholdings of Directors, Supervisors, and Chief Executives | Name | Position | Capacity | Share Class | Number of Shares | Approximate Percentage of Total Issued H Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Guoqing | Vice Chairman and Non-executive Director | Personal Interest | H Shares | 48,000 | 0.01 | - Mr. Li Guoqing subscribed for **1,000,000 domestic shares** under the core employee share ownership plan, and Mr. Xia Xiujiang's subscription under the employee share ownership plan increased to **1,000,000 domestic shares**[62](index=62&type=chunk) - During the reporting period, the Company did not grant any rights to Directors, Supervisors, and Chief Executives to subscribe for shares or debentures of the Company or any related corporation[63](index=63&type=chunk) [Changes in Board of Directors and Board of Supervisors](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E7%9B%A3%E4%BA%8B%E6%9C%83%E8%AE%8A%E5%8B%95%E6%83%85%E6%B3%81) The Company held a general meeting on June 16, 2025, to appoint members of the Fourth Board of Directors and Board of Supervisors, with Mr. Pei Hongwei elected Chairman, Mr. Li Guoqing elected Vice Chairman, and Mr. Hu Shengjie elected Chairman of the Board of Supervisors; adjustments were also made to the Board's special committees [Changes in Directors](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E8%AE%8A%E5%8B%95) Mr. Xia Xiujiang was appointed Executive Director, Mr. Pei Hongwei and Mr. Li Guoqing were appointed Non-executive Directors, and Mr. Wang Guofeng was appointed Independent Non-executive Director, all for a three-year term; Mr. Tan Guisheng and Mr. Ma Xufei retired as Directors - Mr. Xia Xiujiang was appointed Executive Director, and Mr. Pei Hongwei, Mr. Li Guoqing, Ms. Shi Huaxin, Mr. Peng Dongdong, Mr. Li Fei, Mr. Wang Tao, and Ms. Tang Qimeng were appointed Non-executive Directors[64](index=64&type=chunk) - Mr. Wang Guofeng, Mr. Xia Peng, Mr. Chen Fan, and Mr. Zha Xiaodong were appointed Independent Non-executive Directors[64](index=64&type=chunk) - Mr. Tan Guisheng and Mr. Ma Xufei retired as Directors on the same day[64](index=64&type=chunk) [Changes in Supervisors](index=24&type=section&id=%E7%9B%A3%E4%BA%8B%E8%AE%8A%E5%8B%95) Mr. Hu Shengjie, Ms. Zhong Hua, Mr. Fang Binjia, and Mr. Fu Yanbing were appointed as Supervisors of the Fourth Board of Supervisors, forming the Board of Supervisors with employee representative supervisors; Ms. Nie Kun and others retired as Supervisors - Mr. Hu Shengjie, Ms. Zhong Hua, Mr. Fang Binjia, and Mr. Fu Yanbing were appointed as Supervisors of the Fourth Board of Supervisors[65](index=65&type=chunk) - They, along with employee representative supervisors Mr. Liu Hao, Ms. Liu Xiaobo, and Mr. Li Zhiyu, form the Fourth Board of Supervisors[65](index=65&type=chunk) - Ms. Nie Kun, Mr. Li Yan, Ms. Yang Huiju, and Mr. Ban Jianbo retired as Supervisors on the same day[65](index=65&type=chunk) [Appointment of Chairman and Vice Chairman of the Board](index=24&type=section&id=%E5%A7%94%E4%BB%BB%E8%91%A3%E4%BA%8B%E6%9C%83%E8%91%A3%E4%BA%8B%E9%95%B7%E5%8F%8A%E5%89%AF%E8%91%A3%E4%BA%8B%E9%95%B7) The Board of Directors elected Mr. Pei Hongwei as Chairman and Mr. Li Guoqing as Vice Chairman of the Fourth Board of Directors on June 16, 2025, effective immediately - Mr. Pei Hongwei was elected Chairman of the Fourth Board of Directors[66](index=66&type=chunk) - Mr. Li Guoqing was elected Vice Chairman of the Fourth Board of Directors[66](index=66&type=chunk) [Appointment of Board Committee Members](index=24&type=section&id=%E5%A7%94%E4%BB%BB%E8%91%A3%E4%BA%8B%E6%9C%83%E5%B0%88%E9%96%80%E5%A7%94%E5%93%A1%E6%9C%83%E5%A7%94%E5%93%A1) The Board's special committee members were adjusted, with Mr. Pei Hongwei appointed Chairman of the Nomination Committee and Overseas Risk Control Committee, Mr. Xia Peng as Chairman of the Audit Committee, and Mr. Wang Guofeng as Chairman of the Remuneration Committee Chairmen of Board Committees | Committee | Chairman | | :--- | :--- | | Nomination Committee | Mr. Pei Hongwei | | Audit Committee | Mr. Xia Peng | | Remuneration Committee | Mr. Wang Guofeng | | Overseas Risk Control Committee | Mr. Pei Hongwei | [Appointment of Chairman of the Board of Supervisors](index=25&type=section&id=%E5%A7%94%E4%BB%BB%E7%9B%A3%E4%BA%8B%E6%9C%83%E4%B8%BB%E5%B8%AD) The Board of Supervisors elected Mr. Hu Shengjie as Chairman of the Fourth Board of Supervisors on June 16, 2025, effective immediately - Mr. Hu Shengjie was elected Chairman of the Fourth Board of Supervisors[68](index=68&type=chunk) [Standard Code for Securities Transactions by Directors and Supervisors](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E7%9B%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the "Standard Code" as the code for securities transactions by its Directors and Supervisors, all of whom confirmed compliance during the reporting period - The Company has adopted the "Standard Code" as the code for securities transactions by its Directors and Supervisors[69](index=69&type=chunk) - Each Director and Supervisor confirmed their continuous compliance with the said code during the reporting period[69](index=69&type=chunk) [Shareholders' Interests and Short Positions Required to be Disclosed Under the SFO](index=26&type=section&id=%E6%A0%B9%E6%93%9A%E8%AD%89%E5%88%B8%E5%8F%8A%E6%9C%9F%E8%B2%A8%E6%A2%9D%E4%BE%8B%E8%82%A1%E6%9D%B1%E9%A0%88%E6%8A%AB%E9%9C%B2%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, the Company's major shareholders included Beijing Urban Construction Group, Beijing Infrastructure Investment Co., Ltd., and Beijing Chengtong Enterprise Management Center, holding domestic and H shares; Amundi Asset Management and Amundi Ireland Ltd were major H-share shareholders [Interests and Short Positions of Major Shareholders in the Company's Shares and Related Shares](index=26&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) Beijing Urban Construction Group is the controlling shareholder, holding **59.44%** of domestic shares; Beijing Infrastructure Investment Co., Ltd. and its subsidiary, Beijing Infrastructure Investment (Hong Kong) Co., Ltd., collectively hold approximately **14.83%** of shares; Amundi Asset Management and Amundi Ireland Ltd are major H-share shareholders Major Shareholder Domestic Shareholdings (thousand shares) | Shareholder Name | Capacity | Number of Domestic Shares (shares) | Approximate Percentage of Total Issued Domestic Share Capital (%) | Approximate Percentage of Total Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | | Beijing Urban Construction Group Co., Ltd. | Beneficial Owner | 571,031,118 | 59.44 | 42.34 | | Beijing Infrastructure Investment Co., Ltd. | Beneficial Owner | 87,850,942 | 9.14 | 6.51 | | Beijing Chengtong Enterprise Management Center (L.P.) | Beneficial Owner | 76,000,000 | 7.91 | 5.64 | Major Shareholder H-share Holdings (thousand shares) | Shareholder Name | Capacity | Number of H Shares (shares) | Approximate Percentage of Total Issued H Share Capital (%) | Approximate Percentage of Total Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | | Amundi Asset Management | Investment Manager | 83,171,000 | 21.44 | 6.17 | | Amundi Ireland Ltd | Investment Manager | 81,494,000 | 21.01 | 6.04 | | Beijing Infrastructure Investment Co., Ltd. | Interest in Controlled Corporation | 68,222,000 | 17.59 | 5.06 | | Beijing Infrastructure Investment (Hong Kong) Co., Ltd. | Beneficial Owner | 68,222,000 | 17.59 | 5.06 | - Beijing Infrastructure Investment Co., Ltd., through its wholly-owned subsidiary Beijing Infrastructure Investment (Hong Kong) Co., Ltd., indirectly holds a long position of **68,222,000 H shares** in the Company[71](index=71&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=27&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities[73](index=73&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[74](index=74&type=chunk) [Corporate Governance](index=28&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company has established a corporate governance system comprising the general meeting of shareholders, Board of Directors, Board of Supervisors, and senior management, in strict compliance with relevant laws, regulations, and regulatory requirements, and meets the code provisions of the "Corporate Governance Code" - The Company operates in strict accordance with the "Company Law of the People's Republic of China," the "Corporate Governance Code," and other laws, regulations, and regulatory requirements of domestic and overseas regulatory authorities[75](index=75&type=chunk) - It has established a corporate governance system consisting of the general meeting of shareholders, the Board of Directors, the Board of Supervisors, and senior management, forming an operating mechanism of mutual cooperation, coordination, and checks and balances[75](index=75&type=chunk) - During the reporting period, the Company consistently complied with all applicable regulatory laws, regulations, the "Articles of Association," and the code provisions of the "Corporate Governance Code"[75](index=75&type=chunk) [Material Litigation and Arbitration Matters](index=28&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F%E5%8F%8A%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A0%85) During the reporting period, the Group had no litigation or arbitration matters that had a material impact on its operating activities - During the reporting period, the Group had no litigation or arbitration matters that had a material impact on its operating activities[76](index=76&type=chunk) [Articles of Association](index=28&type=section&id=%E3%80%8A%E5%85%AC%E5%8F%B8%E7%AB%A0%E7%A8%8B%E3%80%8B) The latest version of the "Articles of Association" has been revised and is available on the Company's and HKEX websites to further improve the corporate governance structure - The latest version of the "Articles of Association" is available on the Company's and HKEX websites[77](index=77&type=chunk) - During the reporting period, the Company made corresponding revisions to the "Articles of Association" to further improve its corporate governance structure[77](index=77&type=chunk) [Adoption of China Accounting Standards for Business Enterprises for Financial Reporting](index=29&type=section&id=%E6%8E%A1%E7%94%A8%E4%B8%AD%E5%9C%8B%E4%BC%81%E6%A5%AD%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E7%B7%A8%E8%A3%BD%E8%B2%A1%E5%8B%99%E6%9C%83%E8%A8%88%E5%A0%B1%E5%91%8A) The Board of Directors resolved on May 15, 2025, to adopt China Accounting Standards for Business Enterprises for financial reporting to enhance work efficiency, believing this is in the Company's best interest and will not materially affect its financial position, operating results, or cash flows - The Board of Directors resolved on May 15, 2025, to adopt China Accounting Standards for Business Enterprises for financial reporting[78](index=78&type=chunk) - This move aims to improve work efficiency and is in the best interest of the Company[78](index=78&type=chunk) - It is expected not to have a material impact on the Company's financial position, operating results, and cash flows in 2025 and beyond[78](index=78&type=chunk) [Review of Interim Report](index=29&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The Company's auditor, Da Hua Certified Public Accountants (Special General Partnership), reviewed the Group's interim financial statements for the six months ended June 30, 2025, and the Audit Committee also reviewed the interim results - The Company's auditor, Da Hua Certified Public Accountants (Special General Partnership), reviewed the Group's interim financial statements for the six months ended June 30, 2025[79](index=79&type=chunk) - The Company's Audit Committee reviewed the Group's interim results and unaudited interim financial statements for the six months ended June 30, 2025[79](index=79&type=chunk) [Public Float](index=30&type=section&id=%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) As of the report date, the Company's public float was approximately **23.70%**, failing to meet the minimum public float requirement of the Hong Kong Listing Rules; the Company is actively pursuing feasible measures, including restarting A-share issuance, negotiating major shareholder share transfers, or issuing H-shares to independent third parties, to restore the public float level - As of the date of this report, the Company's public float is approximately **23.70%**, which does not comply with the minimum public float requirement under Rule 8.08(1)(a) of the Hong Kong Listing Rules[81](index=81&type=chunk) - After Beijing Infrastructure Investment Co., Ltd. increased its stake by **68,222,000 H shares**, it became one of the major shareholders, and its H shares are no longer considered publicly held circulating shares[80](index=80&type=chunk) - The Company is actively taking feasible measures, including restarting the A-share issuance plan, negotiating with major shareholders to sell shares, and/or issuing H-shares to independent third parties under a general mandate, to restore the public float level[81](index=81&type=chunk) [Interim Financial Statements Review Report](index=31&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Da Hua Certified Public Accountants (Special General Partnership) reviewed Beijing Urban Construction Design & Development Group Co., Limited's consolidated financial statements for the six months ended June 30, 2025, concluding that no matters came to their attention suggesting the statements were not prepared in accordance with enterprise accounting standards or did not fairly reflect the financial position, operating results, and cash flows in all material respects - Da Hua Certified Public Accountants (Special General Partnership) reviewed the consolidated financial statements of Beijing Urban Construction Design & Development Group Co., Limited for the six months ended June 30, 2025[82](index=82&type=chunk) - The review was conducted in accordance with "China Review Standard No. 2101 - Review of Financial Statements," providing a lower level of assurance than an audit[82](index=82&type=chunk) - Based on the review, no matters came to the reviewer's attention that caused them to believe the financial statements were not prepared in accordance with enterprise accounting standards or did not fairly reflect the financial position, operating results, and cash flows in all material respects[83](index=83&type=chunk) [Consolidated Balance Sheet](index=32&type=section&id=%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) This section presents the Group's consolidated balance sheet, detailing its assets, liabilities, and owners' equity as of June 30, 2025, and January 1, 2025 Consolidated Balance Sheet Key Data (yuan) | Item | June 30, 2025 (Period-end Balance) | January 1, 2025 (Period-start Balance) | | :--- | :--- | :--- | | **Current Assets:** | | | | Cash and Bank Balances | 1,933,635,958.25 | 3,156,509,037.14 | | Accounts Receivable | 4,252,267,487.11 | 4,012,733,311.84 | | Contract Assets | 5,764,005,751.45 | 5,516,151,792.12 | | Total Current Assets | 12,549,527,750.98 | 13,230,996,750.32 | | **Non-current Assets:** | | | | Long-term Equity Investments | 3,493,645,305.90 | 3,449,404,050.96 | | Fixed Assets | 1,247,801,332.97 | 1,264,222,355.74 | | Other Non-current Assets | 4,450,452,933.04 | 4,647,760,715.86 | | Total Non-current Assets | 11,097,270,724.58 | 11,310,928,503.47 | | **Total Assets** | **23,646,798,475.56** | **24,541,925,253.79** | | **Current Liabilities:** | | | | Short-term Borrowings | 918,003,461.02 | 800,057,476.75 | | Accounts Payable | 5,096,662,049.56 | 5,539,926,648.80 | | Contract Liabilities | 2,165,872,783.41 | 2,731,408,144.20 | | Total Current Liabilities | 10,125,366,874.01 | 11,061,007,358.63 | | **Non-current Liabilities:** | | | | Long-term Borrowings | 4,251,245,909.09 | 4,334,024,094.09 | | Bonds Payable | 500,000,000.00 | 500,000,000.00 | | Total Non-current Liabilities | 5,483,864,230.35 | 5,547,513,352.51 | | **Total Liabilities** | **15,609,231,104.36** | **16,608,520,711.14** | | **Owners' Equity:** | | | | Paid-in Capital (or Share Capital) | 1,348,670,000.00 | 1,348,670,000.00 | | Retained Earnings | 5,098,887,359.11 | 5,011,885,481.00 | | Total Equity Attributable to Parent Company Owners | 7,797,515,996.99 | 7,695,822,111.35 | | Non-controlling Interests | 240,051,374.21 | 237,582,431.30 | | **Total Owners' Equity** | **8,037,567,371.20** | **7,933,404,542.65** | | **Total Liabilities and Owners' Equity** | **23,646,798,475.56** | **24,541,925,253.79** | [Consolidated Income Statement](index=37&type=section&id=%E5%90%88%E4%BD%B5%E5%88%A9%E6%BD%A4%E8%A1%A8) This section presents the Group's consolidated income statement, detailing its revenues, expenses, and net profit for the six months ended June 30, 2025, and the comparative period Consolidated Income Statement Key Data (yuan) | Item | January-June 2025 (Current Period Amount) | January-June 2024 (Prior Period Amount) | | :--- | :--- | :--- | | I. Total Operating Revenue | 3,586,318,950.13 | 4,178,988,200.72 | | II. Total Operating Costs | 3,247,912,094.44 | 3,724,628,339.32 | | Including: Operating Costs | 2,893,377,461.12 | 3,363,629,737.41 | | Selling Expenses | 26,748,955.83 | 28,684,396.11 | | Administrative Expenses | 223,213,616.12 | 227,801,705.50 | | Research and Development Expenses | 141,896,162.94 | 147,640,596.66 | | Financial Expenses | -55,300,467.83 | -51,081,526.58 | | Add: Other Income | 3,683,074.09 | 1,527,927.75 | | Investment Income | 44,267,254.93 | 71,349,789.26 | | Gains from Changes in Fair Value | 1,356,000.00 | -3,708,000.00 | | Credit Impairment Losses | -18,321,540.30 | -48,445,420.89 | | Asset Impairment Losses | -75,834,131.22 | -52,456,351.70 | | III. Operating Profit | 294,180,975.66 | 423,094,057.59 | | IV. Total Profit | 291,830,692.80 | 431,112,401.17 | | Less: Income Tax Expense | 52,442,034.56 | 60,327,024.44 | | V. Net Profit | 239,388,658.24 | 370,785,376.73 | | Net Profit Attributable to Parent Company Owners | 232,253,637.11 | 359,774,333.20 | | VI. Net Other Comprehensive Income After Tax | 10,474,882.39 | -17,869,093.99 | | VII. Total Comprehensive Income | 249,863,540.63 | 352,916,282.74 | | VIII. Earnings Per Share: | | | | Basic Earnings Per Share | 0.18 | 0.27 | | Diluted Earnings Per Share | 0.18 | 0.27 | [Consolidated Cash Flow Statement](index=40&type=section&id=%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This section presents the Group's consolidated cash flow statement, detailing cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and the comparative period Consolidated Cash Flow Statement Key Data (yuan) | Item | January-June 2025 (Current Period Amount) | January-June 2024 (Prior Period Amount) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | -1,039,802,162.20 | -721,076,410.19 | | II. Net Cash Flow from Investing Activities | -24,416,059.22 | -87,614,623.41 | | III. Net Cash Flow from Financing Activities | -123,581,225.69 | -263,927,546.96 | | IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,287,224.54 | -2,316,542.27 | | V. Net Increase in Cash and Cash Equivalents | -1,189,086,671.65 | -1,074,935,122.83 | | VI. Cash and Cash Equivalents at Period-end | 1,854,759,590.27 | 2,234,760,947.91 | [Consolidated Statement of Changes in Equity](index=43&type=section&id=%E5%90%88%E4%BD%B5%E6%89%80%E6%9C%89%E8%80%85%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This section presents the Group's consolidated statement of changes in equity, detailing movements in owners' equity for the six months ended June 30, 2025, and the comparative period Consolidated Statement of Changes in Equity Key Data (yuan) | Item | January-June 2025 (Current Period Amount) | January-June 2024 (Prior Period Amount) | | :--- | :--- | :--- | | I. Balance at End of Previous Year | 7,933,404,542.65 | 7,628,613,602.56 | | III. Amount of Changes for the Current Year (Decrease indicated by "-") | 104,162,828.55 | 121,633,247.44 | | (I) Total Comprehensive Income | 249,863,540.63 | 352,916,282.74 | | (III) Extraction and Use of Special Reserves | 4,217,125.14 | 6,321,183.40 | | (IV) Profit Distribution | -149,917,837.22 | -234,100,388.55 | | IV. Balance at End of Current Year | 8,037,567,371.20 | 7,750,246,850.00 | [Notes to the Interim Financial Statements](index=47&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [I. Company Profile](index=47&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Beijing Urban Construction Design & Development Group Co., Limited was established on October 28, 2013, with its H-shares listed on the Hong Kong Stock Exchange; the Company operates in the industrial design sector, primarily offering design, survey, consulting, and engineering contracting services for urban rail transit and related projects, with Beijing Urban Construction Group Co., Ltd. as its parent and ultimate controlling shareholder [History, Registered Address, Organizational Form, and Headquarters](index=47&type=section&id=%E6%AD%B7%E5%8F%B2%E6%B2%BF%E9%9D%A9%E3%80%81%E8%A8%BB%E5%86%8A%E5%9C%B0%E3%80%81%E7%B5%84%E7%B9%94%E5%BD%A2%E5%BC%8F%E5%8F%8A%E7%B8%BD%E9%83%A8%E5%9C%B0%E5%9D%80) The Company was established on October 28, 2013, by Beijing Urban Construction Group Co., Ltd., with its registered address at No. 5 Fuchengmen North Street, Xicheng District, Beijing; its H-shares are listed on The Stock Exchange of Hong Kong Limited under stock code 01599 - The Company was established on October 28, 2013, by Beijing Urban Construction Group Co., Ltd[114](index=114&type=chunk) - The Company's registered address is No. 5 Fuchengmen North Street, Xicheng District, Beijing, and its H-shares are listed on The Stock Exchange of Hong Kong Limited, stock code: 01599[114](index=114&type=chunk) [Nature of Business and Principal Operations](index=47&type=section&id=%E4%BC%81%E6%A5%AD%E7%9A%84%E6%A5%AD%E5%8B%99%E6%80%A7%E8%B3%AA%E5%92%8C%E4%B8%BB%E8%A6%81%E7%B6%93%E7%87%9F) The Company operates in the industrial design sector, primarily providing design, survey, and consulting services, as well as engineering contracting services, for urban rail transit and related industrial, civil, and municipal engineering projects - The Company operates in the industrial design sector, primarily providing design, survey, and consulting services for urban rail transit and related industrial and civil building and municipal engineering projects[117](index=117&type=chunk) - Currently, the main business segments are: design, survey, and consulting, and engineering contracting[118](index=118&type=chunk) [Name of Parent Company and Group Headquarters](index=47&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E4%BB%A5%E5%8F%8A%E9%9B%86%E5%9C%98%E7%B8%BD%E9%83%A8%E7%9A%84%E5%90%8D%E7%A8%B1) The Group's parent company and ultimate controlling shareholder is Beijing Urban Construction Group Co., Ltd - The Group's parent company and ultimate controlling shareholder are both Beijing Urban Construction Group Co., Ltd[119](index=119&type=chunk) [Approval and Issuance of Financial Statements](index=47&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E6%89%B9%E5%87%86%E5%A0%B1%E5%87%BA) These financial statements were approved for issuance by the Company's Board of Directors on August 28, 2025 - These financial statements were approved for issuance by the Company's Board of Directors on August 28, 2025[120](index=120&type=chunk) [II. Scope of Consolidated Financial Statements](index=48&type=section&id=%E4%BA%8C%E3%80%81%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%AF%84%E5%9C%8D) This period's consolidated financial statements include **21 second-tier subsidiaries**, covering businesses such as survey and design, engineering consulting, property management, engineering contracting, and investment and construction, primarily registered in Beijing, with some in Anhui, Guizhou, Yunnan, and Hong Kong - This period's consolidated financial statements include a total of **21 second-tier subsidiaries**[121](index=121&type=chunk) - The subsidiaries' business nature is diverse, including survey, design, and engineering exploration, rail transit engineering consulting, property management, engineering testing, construction project investment, construction and operation maintenance, and engineering contracting[121](index=121&type=chunk)[122](index=122&type=chunk) - The subsidiaries are primarily registered in Beijing, and also distributed in Hong Kong, Anhui, Guizhou, Yunnan, Guangdong, Hunan, and other regions[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) [III. Basis of Preparation of Financial Statements](index=50&type=section&id=%E4%B8%89%E3%80%81%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E7%B7%A8%E8%A3%BD%E5%9F%BA%E7%A4%8E) The Company prepares its financial statements on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the disclosure require

[Financial Summary](index=1&type=section&id=Financial%20Summary) North Sea Group reported a 26.1% revenue decrease and 160.1% loss expansion for H1 2025, with per-share loss at 1.92 HK cents and debt-to-equity ratio rising to 14.6% H1 2025 Financial Summary | Indicator | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 119,045 | 161,111 | -26.1 | | Gross Profit | 50,191 | 66,334 | -24.3 | | Gross Profit Margin | 42.2% | 41.2% | 2.4 | | Loss for the Period | (43,876) | (16,868) | 160.1 | | Loss Attributable to Owners of the Company | (36,551) | (13,462) | 171.5 | | Loss Per Share (HK cents) | (1.92) | (0.71) | 171.5 | | Cash and Cash Equivalents and Pledged Deposits | 329,228 | 308,948 | 6.6 | | Bank Borrowings | 175,216 | 137,618 | 27.3 | | Debt-to-Equity Ratio | 14.6% | 11.3% | 29.2 | | Net Asset Value Per Share (HKD) | 0.68 | 0.70 | -2.9 | | Shareholders' Funds Per Share (HKD) | 0.63 | 0.64 | -1.6 | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's H1 2025 revenue decreased by 26.1% to HKD 119,045 thousand, with gross profit down 24.3% and loss expanding to HKD 43,876 thousand, driven by investment property fair value losses Condensed Consolidated Statement of Profit or Loss Key Data | Indicator | 2025 (HKD Thousands) | 2024 (HKD Thousands) | | :--- | :--- | :--- | | Revenue | 119,045 | 161,111 | | Cost of Sales | (68,854) | (94,777) | | Gross Profit | 50,191 | 66,334 | | Other Income and Net Gains | 4,881 | 11,800 | | Net Fair Value Loss on Investment Properties | (30,751) | (11,632) | | Loss Before Tax | (44,519) | (17,116) | | Loss for the Period | (43,876) | (16,868) | | Loss Attributable to Owners of the Parent | (36,551) | (13,462) | | Basic and Diluted Loss Per Share (HK cents) | (1.92) | (0.71) | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's H1 2025 total comprehensive loss narrowed to HKD 22,409 thousand, primarily due to a positive swing in exchange differences on foreign operations translation Condensed Consolidated Statement of Comprehensive Income Key Data | Indicator | 2025 (HKD Thousands) | 2024 (HKD Thousands) | | :--- | :--- | :--- | | Loss for the Period | (43,876) | (16,868) | | Exchange Differences on Translation of Foreign Operations | 21,467 | (18,082) | | Total Comprehensive Loss for the Period | (22,409) | (34,950) | | Total Comprehensive Loss Attributable to Owners of the Parent | (18,919) | (28,176) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets less current liabilities increased to HKD 1,406,191 thousand, with net current assets rising to HKD 197,550 thousand and equity attributable to owners at HKD 1,200,642 thousand Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | | :--- | :--- | :--- | | Total Non-Current Assets | 1,208,641 | 1,230,652 | | Investment Properties | 709,566 | 725,819 | | Total Current Assets | 483,836 | 486,732 | | Total Current Liabilities | 286,286 | 332,471 | | Net Current Assets | 197,550 | 154,261 | | Total Assets Less Current Liabilities | 1,406,191 | 1,384,913 | | Total Non-Current Liabilities | 104,984 | 61,318 | | Net Assets | 1,301,207 | 1,323,595 | | Equity Attributable to Owners of the Parent | 1,200,642 | 1,219,561 | | Total Equity | 1,301,207 | 1,323,595 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) Interim financial statements are prepared under HKAS 34 and Listing Rules, with HKAS 21 amendments having no material impact due to currency convertibility - This condensed consolidated interim financial information is prepared in accordance with HKAS 34 and the Listing Rules, and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[10](index=10&type=chunk) - Amendments to HKAS 21 (Lack of Exchangeability) had no impact on the interim condensed consolidated financial statements, as the Group's entities transact and translate in convertible currencies[12](index=12&type=chunk) [Operating Segment Information](index=6&type=section&id=Operating%20Segment%20Information) The Group operates in four segments: paint products, property investment, hotel operations, and others, with performance assessed on adjusted pre-tax profit/loss excluding certain corporate costs - The Group's operating segments include paint products, property investment, hotel operations, and others (primarily investment holding)[13](index=13&type=chunk) - Segment performance is assessed based on adjusted profit/loss before tax, excluding interest income, finance costs, and head office/corporate expenses[14](index=14&type=chunk) [Segment Revenue and Results](index=7&type=section&id=Segment%20Revenue%20and%20Results) H1 2025 segment revenues were HKD 96,893 thousand for paint products, HKD 16,806 thousand for property investment, and HKD 5,346 thousand for hotel operations, with the Group reporting a HKD 44,519 thousand loss before tax H1 2025 Segment Revenue and Results (HKD Thousands) | Segment | Sales to External Customers | Segment Results | | :--- | :--- | :--- | | Paint Products | 96,893 | (21,578) | | Property Investment | 16,806 | (16,174) | | Hotel Operations | 5,346 | 214 | | Others | – | 3,396 | | Total (after reconciliation) | 119,045 | (44,519) (Loss Before Tax) | H1 2024 Segment Revenue and Results (HKD Thousands) | Segment | Sales to External Customers | Segment Results | | :--- | :--- | :--- | | Paint Products | 137,044 | (19,296) | | Property Investment | 18,863 | 5,084 | | Hotel Operations | 5,204 | 123 | | Others | – | 9,354 | | Total (after reconciliation) | 161,111 | (17,116) (Loss Before Tax) | [Segment Assets and Liabilities](index=9&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, total segment assets were HKD 1,520,413 thousand, with property investment at HKD 816,449 thousand, and total segment liabilities at HKD 422,835 thousand, both showing a decrease from year-end 2024 Segment Assets and Liabilities (HKD Thousands) | Segment | June 30, 2025 Segment Assets | December 31, 2024 Segment Assets | June 30, 2025 Segment Liabilities | December 31, 2024 Segment Liabilities | | :--- | :--- | :--- | :--- | :--- | | Paint Products | 408,654 | 482,223 | 308,967 | 381,312 | | Property Investment | 816,449 | 830,372 | 105,829 | 106,424 | | Hotel Operations | 262,071 | 263,212 | 5,700 | 7,031 | | Others | 33,239 | 33,086 | 2,339 | 2,778 | | Total (after reconciliation) | 1,520,413 | 1,608,893 | 422,835 | 497,545 | [Other Segment Information](index=10&type=section&id=Other%20Segment%20Information) H1 2025 saw property, plant and equipment depreciation of HKD 7,806 thousand, right-of-use asset depreciation of HKD 3,075 thousand, and a HKD 30,751 thousand fair value loss on investment properties Other Segment Information (HKD Thousands) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 7,806 | 9,544 | | Depreciation of Right-of-Use Assets | 3,075 | 3,057 | | Capital Expenditure | 284 | 73 | | Fair Value Loss on Investment Properties | 30,751 | 11,632 | | Net Reversal of Impairment Allowance for Trade and Bills Receivables | (933) | 689 | | Net Reversal of Write-down of Inventories to Net Realizable Value | (269) | 291 | [Geographical Information and Major Customers](index=12&type=section&id=Geographical%20Information%20and%20Major%20Customers) The Group's revenue primarily originated from Mainland China (HKD 99,774 thousand), with non-current assets evenly distributed, and no single customer contributing over 10% of total revenue Revenue from External Customers (HKD Thousands) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hong Kong | 19,271 | 36,997 | | Mainland China | 99,774 | 124,114 | | Total | 119,045 | 161,111 | Non-Current Assets (HKD Thousands) | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Hong Kong | 581,902 | 591,903 | | Mainland China | 580,763 | 590,318 | | Total | 1,162,665 | 1,182,221 | - For the six months ended June 30, 2025 and 2024, no revenue from any single customer accounted for **10% or more** of the Group's total revenue[25](index=25&type=chunk) [Revenue, Other Income and Net Gains](index=12&type=section&id=Revenue%2C%20Other%20Income%20and%20Net%20Gains) Revenue primarily from paint product sales (HKD 96,893 thousand) and investment property rentals (HKD 16,806 thousand), with other income and net gains significantly reduced due to the absence of prior year's one-off legal cost recovery Revenue Source Analysis (HKD Thousands) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales of Paint Products | 96,893 | 137,044 | | Hotel Operations | 5,346 | 5,204 | | Gross Rental Income from Investment Properties under Operating Leases | 16,806 | 18,863 | | Total Revenue | 119,045 | 161,111 | Other Income and Net Gains Analysis (HKD Thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank Interest Income | 2,856 | 3,248 | | Government Grants | 40 | 204 | | Government Subsidies | 342 | 408 | | Recovery of Legal Defense Costs for Derivative Litigation | – | 6,412 | | Others | 1,340 | 1,339 | | Total | 4,881 | 11,800 | [Finance Costs](index=14&type=section&id=Finance%20Costs) H1 2025 finance costs decreased to HKD 2,722 thousand from HKD 3,692 thousand, primarily driven by reduced interest expenses on bank borrowings Finance Costs Analysis (HKD Thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on Bank Borrowings | 2,558 | 3,499 | | Interest on Lease Liabilities | 164 | 193 | | Total | 2,722 | 3,692 | [Loss Before Tax](index=15&type=section&id=Loss%20Before%20Tax) H1 2025 loss before tax significantly increased to HKD 44,519 thousand, primarily due to higher fair value losses on investment properties and increased staff severance costs Loss Before Tax Components (HKD Thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of Inventories Sold | 68,854 | 94,777 | | Depreciation of Property, Plant and Equipment | 7,806 | 9,544 | | Net Fair Value Loss on Investment Properties | 30,751 | 11,632 | | Net Impairment Allowance / (Reversal) for Trade and Bills Receivables | (933) | 689 | | Staff Severance Costs | 1,128 | 600 | [Income Tax](index=15&type=section&id=Income%20Tax) The Group recorded an H1 2025 income tax credit of HKD 643 thousand, primarily from deferred tax, with no Hong Kong profits tax provision and varied Mainland China tax rates - The Group had sufficient brought-forward tax losses to offset taxable profits in Hong Kong, resulting in **no Hong Kong profits tax provision** for the current period[31](index=31&type=chunk) - Mainland China subsidiaries are subject to a standard corporate income tax rate of **25%**, while those qualified as high-tech enterprises enjoy a preferential rate of **15%**[31](index=31&type=chunk) Total Income Tax Credit (HKD Thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current - Other Regions Expense for the Period | 105 | 93 | | Deferred | (748) | (341) | | Total Tax Credit for the Period | (643) | (248) | [Loss Per Share and Dividends](index=16&type=section&id=Loss%20Per%20Share%20and%20Dividends) H1 2025 basic and diluted loss per share attributable to parent's equity holders significantly increased to 1.92 HK cents, with no interim dividend declared - Basic and diluted loss per share attributable to ordinary equity holders of the parent was **1.92 HK cents** (H1 2024: 0.71 HK cents), representing a **171.5% increase** in loss[33](index=33&type=chunk) - No diluted adjustment was made as unexercised share options had an anti-dilutive effect on basic loss per share[33](index=33&type=chunk) - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[34](index=34&type=chunk) [Property, Plant and Equipment and Investment Properties](index=16&type=section&id=Property%2C%20Plant%20and%20Equipment%20and%20Investment%20Properties) H1 2025 property, plant and equipment additions cost HKD 284 thousand, while investment property carrying value decreased to HKD 709,566 thousand due to fair value losses - The Group's cost of additions to property, plant and equipment for the six months ended June 30, 2025, was **HKD 284 thousand**, a significant increase from HKD 73 thousand in the prior year[35](index=35&type=chunk) Investment Property Carrying Value (HKD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Carrying Value at Beginning of Period/Year | 725,819 | 772,933 | | Fair Value Loss | (30,751) | (46,604) | | Exchange Adjustment | 14,498 | (15,514) | | Carrying Value at End of Period/Year | 709,566 | 725,819 | - The fair value loss on investment properties was primarily derived from revaluation by independent professional valuers using the income capitalization approach, market comparison approach, and depreciated replacement cost approach[36](index=36&type=chunk) [Trade and Bills Receivables and Payables](index=17&type=section&id=Trade%20and%20Bills%20Receivables%20and%20Payables) As of June 30, 2025, trade and bills receivables decreased to HKD 78,275 thousand, and payables to HKD 96,124 thousand, with the Group maintaining strict credit risk control - The Group's trade receivables primarily arise from investment property leases and paint product sales, with credit terms typically ranging from **one to three months**[37](index=37&type=chunk) Ageing Analysis of Trade and Bills Receivables (HKD Thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 Months | 39,287 | 57,477 | | Over 3 Months but Within 6 Months | 8,436 | 7,585 | | Over 6 Months | 30,552 | 40,447 | | Total | 78,275 | 105,509 | Ageing Analysis of Trade and Bills Payables (HKD Thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 Months | 34,946 | 49,975 | | Over 3 Months but Within 6 Months | 20,141 | 34,389 | | Over 6 Months | 41,037 | 41,073 | | Total | 96,124 | 125,437 | - Trade and bills payables are unsecured, non-interest-bearing, and generally settled within **two months**, with some bills payable secured by time deposits[39](index=39&type=chunk) [Share Option Schemes](index=19&type=section&id=Share%20Option%20Schemes) Both the Company and China Paint Group have share option schemes, with no new grants by the Company in H1 2025, some China Paint options lapsing, and a net expense of HKD 21 thousand recognized - The Company's 2022 Share Option Scheme is valid for **ten years** from June 2, 2022, with **no share options granted** during H1 2025[40](index=40&type=chunk) - China Paint Group's share option scheme granted **80,000,000 share options** on June 15, 2022, with an exercise price of **HKD 0.335 per share** and a **four-year vesting period**[41](index=41&type=chunk)[42](index=42&type=chunk) China Paint Group Outstanding Share Options (Million shares) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | At January 1 | 70 | 80 | | Lapsed During the Period | (10) | (10) | | At June 30 | 60 | 70 | | Vested and Exercisable at June 30 | 54 | 56 | - A net share option expense of approximately **HKD 21 thousand** was recognized for H1 2025 (H1 2024: HKD 209 thousand)[44](index=44&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=21&type=section&id=Business%20Review) The Group recorded a significant H1 2025 loss of HKD 36,550 thousand, driven by investment property fair value losses and the absence of prior year's one-off legal cost recovery, with revenue down 26.1% due to weak market demand - Loss attributable to owners of the Company was approximately **HKD 36,550 thousand**, a significant increase from HKD 13,460 thousand in the prior year[48](index=48&type=chunk) - The expanded loss is primarily attributed to a fair value loss on investment properties of approximately **HKD 30,750 thousand** (H1 2024: HKD 11,630 thousand) and the absence of a one-off recovery of legal defense costs for derivative litigation of HKD 6,410 thousand in the prior year[48](index=48&type=chunk) - Total revenue was approximately **HKD 119,050 thousand**, a **26.1% year-on-year decrease**, with gross profit at approximately **HKD 50,190 thousand**, a **24.3% year-on-year decrease**[49](index=49&type=chunk) - The significant decrease in gross profit was mainly due to weak demand in the Mainland China and Hong Kong real estate and construction sectors, coupled with intensified competition in the paint and coatings industry, leading to a **29.3% decline** in paint and coatings product sales[49](index=49&type=chunk) [Property Investment Business](index=22&type=section&id=Property%20Investment%20Business) Property investment revenue decreased to HKD 16,810 thousand, with total investment property market value down 2.2% to HKD 709,570 thousand, and segment results turning to a HKD 16,170 thousand loss due to market downturn and lower occupancy - Property investment business revenue was approximately **HKD 16,810 thousand**, a decrease from HKD 18,860 thousand in the prior year, mainly due to changes in monthly value-added clauses in long-term lease agreements[51](index=51&type=chunk) - The total market value of investment properties was approximately **HKD 709,570 thousand**, a **2.2% decrease** from December 31, 2024, primarily due to fair value losses resulting from the continued sluggish real estate markets in Mainland China and Hong Kong[52](index=52&type=chunk) - The average occupancy rate decreased from **93.6% to 85.9%**, mainly because an investment property (the former China Paint Group Hubei production plant) remains unleased[53](index=53&type=chunk) - Segment results turned from a profit of HKD 5,080 thousand in the prior year to a **loss of HKD 16,170 thousand**, primarily due to a significant increase in fair value loss on investment properties to HKD 19,120 thousand[53](index=53&type=chunk) [Properties Under Development](index=24&type=section&id=Properties%20Under%20Development) The Yuen Long Au Tau redevelopment project, including conservation and elderly care facilities, has been approved, with the Group exploring a sale to an independent third party for optimal shareholder benefit - The redevelopment project on Au Tau land in Yuen Long has been approved by the Town Planning Board, including the conservation of Poon Uk, construction of recreational and cultural facilities, and an elderly care home providing approximately **530 beds**[55](index=55&type=chunk) - This permission is valid for **four years**, until August 2026[55](index=55&type=chunk) - The Company's directors initially believe that selling the redevelopment project to an independent third party would be in the overall best interests of the Company and its shareholders[56](index=56&type=chunk) [Hotel Operations](index=25&type=section&id=Hotel%20Operations) Hotel operations generated HKD 5,350 thousand in revenue with 94% occupancy, turning to a HKD 210 thousand profit due to cost control, with high occupancy and improved room rates expected - Total hotel operations revenue was approximately **HKD 5,350 thousand**, with an average occupancy rate of approximately **94%**[57](index=57&type=chunk) - Segment results turned from a loss of HKD 120 thousand in the prior year to a **profit of HKD 210 thousand**, primarily due to effective cost control[57](index=57&type=chunk) - Room occupancy rates are expected to remain high in 2025, and average room rates are anticipated to improve, benefiting from ongoing promotional activities by the Hong Kong government[58](index=58&type=chunk) [Paint and Coatings Business](index=26&type=section&id=Paint%20and%20Coatings%20Business) Paint and coatings revenue significantly decreased by 29.3% to HKD 96,890 thousand due to weak real estate markets and intense competition, with gross profit down 30.6% despite lower raw material costs Paint Sales Revenue Analysis (HKD Thousands) | Product Category | H1 2025 (HKD Thousands) | H1 2024 (HKD Thousands) | Net Change (%) | | :--- | :--- | :--- | :--- | | Industrial Paints and Coatings Products | 56,485 | 64,904 | -13.0 | | Architectural Paints and Coatings Products | 17,190 | 35,217 | -51.2 | | General Paints and Coatings and Ancillary Products | 23,218 | 36,923 | -37.1 | | Total | 96,893 | 137,044 | -29.3 | - The Mainland China market contributed **89.4%** of total paint sales revenue (2024: 79.8%)[60](index=60&type=chunk) - Paint sales to Hong Kong wholesale and retail distributors significantly decreased by **67.7%**, primarily due to the negative impact of the construction and building industry on local GDP and contractors' preference for direct procurement from Mainland China[62](index=62&type=chunk) - Paint sales to Mainland China wholesale and retail distributors decreased by **13.8%**, mainly affected by the sluggish real estate market and intensified industry competition[63](index=63&type=chunk) - Paint sales to real estate developers and contractors for private residential property projects in Mainland China significantly declined by **97.5%**, attributed to the continued downturn in the real estate market and stalled progress on new projects[64](index=64&type=chunk) - Raw material costs decreased by **19.2%** due to falling crude oil prices, providing China Paint Group with a more competitive pricing advantage[66](index=66&type=chunk) - Gross profit decreased by **30.6%**, but the gross profit margin only declined by **0.6 percentage points**, demonstrating resilience through strategic pricing adjustments[67](index=67&type=chunk) - Selling and distribution expenses decreased by **30.5%**, and administrative expenses decreased by **8.5%**, primarily due to reduced legal and professional fees, lower staff costs, and other operational savings[68](index=68&type=chunk) [Other Businesses](index=29&type=section&id=Other%20Businesses) The Group holds a 12.5% equity in Profitable Industries Limited, operating a phased cemetery project in Sihui City, Guangdong, with sales and marketing strategies under review - The Group holds a **12.5% equity interest** in Profitable Industries Limited, which is engaged in the "Jufu Baohua Overseas Chinese Cemetery" project in Sihui City, Guangdong Province, Mainland China[69](index=69&type=chunk) - The cemetery project is being developed in phases, with the first phase completed, and the remaining **418 mu of land** to be developed in phases two to five[69](index=69&type=chunk)[70](index=70&type=chunk) - The cemetery has obtained a comprehensive marketing license, allowing sales to residents in Mainland China, overseas Chinese, and residents of Hong Kong, Macau, and Taiwan[70](index=70&type=chunk) [Financial Review](index=30&type=section&id=Financial%20Review) The Group's liquidity improved with cash and cash equivalents up 6.6% to HKD 311,720 thousand, while bank borrowings increased to HKD 175,220 thousand, raising the debt-to-equity ratio to 14.6% - Cash and cash equivalents were approximately **HKD 311,720 thousand**, an increase of **6.6%** from December 31, 2024, primarily due to an increase in long-term bank borrowings[71](index=71&type=chunk) - Total bank borrowings were approximately **HKD 175,220 thousand**, an increase of **27.3%** from December 31, 2024, with **72.3%** repayable within one year and **27.7%** repayable in the second and third years[72](index=72&type=chunk) - The debt-to-equity ratio was **14.6%** (December 31, 2024: 11.3%), and the current ratio was **1.69 times** (December 31, 2024: 1.46 times)[73](index=73&type=chunk) Turnover Days Indicators | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Inventory Turnover Days | 57 days | 47 days | | Trade and Bills Receivables Turnover Days | 119 days | 158 days | [Equity, Net Assets and Shareholders' Funds](index=31&type=section&id=Equity%2C%20Net%20Assets%20and%20Shareholders%27%20Funds) As of June 30, 2025, shareholders' funds were approximately HKD 1,200,640 thousand, with net asset value per share at HKD 0.68 and shareholders' funds per share at HKD 0.63, all slightly decreased Equity and Per Share Indicators | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Shareholders' Funds | HKD 1,200,640 thousand | HKD 1,219,560 thousand | | Net Asset Value Per Share | HKD 0.68 | HKD 0.70 | | Shareholders' Funds Per Share | HKD 0.63 | HKD 0.64 | [Contingent Liabilities and Pledge of Assets](index=31&type=section&id=Contingent%20Liabilities%20and%20Pledge%20of%20Assets) As of June 30, 2025, no bank facilities under Company guarantees were utilized, while approximately HKD 511,780 thousand of assets were pledged as collateral for various liabilities - As of June 30, 2025 and December 31, 2024, no bank facilities obtained by several subsidiaries under the Company's guarantees were utilized[75](index=75&type=chunk) - Approximately **HKD 511,780 thousand** of assets (including property, plant and equipment, investment properties, right-of-use assets, and cash deposits) were pledged as collateral for bank borrowings, lease liabilities, bills payable, and performance bonds[76](index=76&type=chunk) - As of June 30, 2025, the total outstanding secured bank borrowings amounted to approximately **HKD 175,220 thousand**[76](index=76&type=chunk) [Business Outlook](index=32&type=section&id=Business%20Outlook) Global economic challenges persist, with Hong Kong and Mainland China real estate markets facing downturns, while hotel operations anticipate recovery; China Paint Group plans revitalization through product diversification and cost reduction - The global environment remains challenging, with geopolitical tensions, trade uncertainties, and volatile US monetary policy posing investment and trade risks[78](index=78&type=chunk) - The Hong Kong commercial real estate market continues to face challenges, with sluggish demand for office and industrial leases, leading to downward pressure on rents[79](index=79&type=chunk) - The Mainland China property leasing market faces significant pressure, with a slight increase in unemployment rates expected to further challenge the property leasing market[80](index=80&type=chunk) - The Hong Kong hotel industry is expected to benefit from the resumption of multiple-entry permits for Shenzhen permanent residents, leading to continued recovery in hotel occupancy rates, though room rates remain pressured[81](index=81&type=chunk) - China Paint Group will implement "Business Revitalization Measures and Actions," including enriching its product portfolio, expanding its distribution network, improving operational efficiency, and reducing costs to navigate market fluctuations[82](index=82&type=chunk)[84](index=84&type=chunk) [Material Investments and Future Plans](index=35&type=section&id=Material%20Investments%20and%20Future%20Plans) As of June 30, 2025, the Group had no undisclosed material investments, significant acquisitions, or disposals of subsidiaries, nor any approved plans for future capital asset additions - For the six months ended June 30, 2025, there were no other material investments acquired, nor any other significant acquisitions or disposals of subsidiaries[85](index=85&type=chunk) - The Board has not approved any other plans for material investments or additions to capital assets[85](index=85&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Shares) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's shares during the review period - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares[86](index=86&type=chunk) [Corporate Governance](index=35&type=section&id=Corporate%20Governance) [Corporate Governance Practices](index=35&type=section&id=Corporate%20Governance%20Practices) The Company applies Listing Rules' Corporate Governance Code, with the Chairman also serving as Managing Director since June 6, 2025, an arrangement the Board believes ensures policy continuity and business stability - The Company applies the principles of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[87](index=87&type=chunk) - Since June 6, 2025, Mr. Tsui Yam Tong has served as both the Chairman of the Board and the Managing Director of the Company, which deviates from Code Provision C.2.1 regarding the separation of roles for Chairman and Chief Executive[87](index=87&type=chunk) - The Board believes this dual role arrangement helps maintain policy continuity and business operational stability for the Company, and its effectiveness will be regularly reviewed[87](index=87&type=chunk)[88](index=88&type=chunk) [Code for Securities Transactions by Directors](index=36&type=section&id=Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted a directors' securities transaction code, no less exacting than the Listing Rules' Model Code, with all directors confirming compliance for H1 2025 - The Company has adopted a code for directors' securities transactions no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[89](index=89&type=chunk) - All directors of the Company confirmed compliance with the standards set out in the Model Code and the Company's own code for the six months ended June 30, 2025[89](index=89&type=chunk) [Board of Directors](index=36&type=section&id=Board%20of%20Directors) As of this announcement, the Board comprises two executive, two non-executive, and three independent non-executive directors - The Board of Directors includes Mr. Tsui Yam Tong (Chairman and Managing Director), Mr. Mak Chi Wah (Executive Director), Mr. Tsui Ho Chuen (Non-executive Director), Mr. Zhang Jun (Non-executive Director), Mr. Ko Kwok Fai (Independent Non-executive Director), Mr. Wong Tak Yue (Independent Non-executive Director), and Ms. Lam Ying Yu (Independent Non-executive Director)[90](index=90&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 Broncus Holding Corporation 堃 博醫療控股有限公司 （於開曼群島註冊成立的有限公司） 堃博醫療控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）欣然公佈本公 司及其附屬公司（統稱「本集團」或「我們」）截至2025年6月30日止六個月（「報告 期」）之未經審核綜合中期業績，連同截至2024年6月30日止六個月之未經審核比 較數字。 | 財務摘要 | | | | | --- | --- | --- | --- | | | 截至 | 截至 | | | | 2025年 | 2024年 | | | | 6月30日 | 6月30日 | | | | 止六個月 | 止六個月 | 同比變動 | | | 千美元 | 千美元 | | | 收入 | 1,652 | 3,704 | -55.4% | | 毛利 | 1,214 | 2,954 | -58.9% | | 期內虧損 | (7,79 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's revenue increased by 16.2% to RMB 771.3 million, but gross profit and profit for the period decreased due to higher costs and increased listing expenses Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 771,288 | 663,625 | 16.2% | | Gross Profit | 138,879 | 148,860 | -6.7% | | Profit for the Period | 13,516 | 18,421 | -26.6% | | Earnings Per Share (RMB) | 0.07 | 0.11 | -36.4% | - Revenue increased by **16.2% to RMB 771.3 million**, primarily driven by increased bulk retail sales, wholesale, and catering services sales[4](index=4&type=chunk) - Gross profit decreased by **6.7% year-on-year to RMB 138.9 million**, with gross margin declining by **4.4 percentage points to 18.0%**, mainly due to reduced high-end liquor sales and increased festive promotions[4](index=4&type=chunk) - Profit for the period decreased by **26.6% year-on-year to RMB 13.5 million**, primarily impacted by increased listing expenses[4](index=4&type=chunk) - The Board resolved not to declare any interim dividend for the reporting period[4](index=4&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial performance and position, including income, balance sheet, and cash flow statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue grew by 16.2% to RMB 771.3 million, but higher cost of sales led to a 6.7% decrease in gross profit, and increased listing expenses resulted in a 26.6% decline in profit for the period Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 771,288 | 663,625 | | Cost of Sales | (632,409) | (514,765) | | Gross Profit | 138,879 | 148,860 | | Operating Profit | 32,049 | 38,085 | | Profit Before Tax | 22,844 | 26,709 | | Profit for the Period | 13,516 | 18,421 | | Total Comprehensive Income for the Period | 14,356 | 19,877 | - Cost of sales increased by **22.9% year-on-year**, outpacing revenue growth and pressuring gross profit[5](index=5&type=chunk) - Operating profit decreased by **15.9% year-on-year**, reflecting faster growth in costs and expenses than gross profit[5](index=5&type=chunk) [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets increased, with improved net current assets and liquidity ratio, notably a significant rise in financial assets at fair value through other comprehensive income Key Data from Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 431,093 | 399,108 | | Current Assets | 1,212,323 | 1,056,580 | | Current Liabilities | 861,864 | 774,555 | | Net Current Assets | 350,459 | 282,025 | | Net Assets | 662,456 | 540,910 | | Total Equity | 662,456 | 540,910 | - Financial assets at fair value through other comprehensive income increased from **RMB 31.7 million** at the end of 2024 to **RMB 57.8 million** as of June 30, 2025[7](index=7&type=chunk) - Trade and bills receivables increased from **RMB 190.0 million** at the end of 2024 to **RMB 313.1 million** as of June 30, 2025[7](index=7&type=chunk) - Bank and other borrowings (current portion) increased from **RMB 409.7 million** at the end of 2024 to **RMB 528.0 million** as of June 30, 2025[7](index=7&type=chunk) [Notes to the Interim Financial Report](index=7&type=section&id=Notes%20to%20the%20Interim%20Financial%20Report) This section provides detailed explanations and disclosures for the interim financial statements, covering accounting policies, revenue breakdown, expenses, and financial position items [General Information](index=7&type=section&id=1%20General%20Information) The company, established in 2005 and listed on the HKEX Main Board on March 31, 2025, primarily engages in grain and oil wholesale and operates "Hongxinlong" brand supermarkets and convenience stores in central Jiangsu - The company was listed on the Main Board of the Hong Kong Stock Exchange on **March 31, 2025**[9](index=9&type=chunk) - The Group is primarily engaged in grain and oil wholesale business and operates supermarkets and convenience stores under the "Hongxinlong" brand in central Jiangsu[9](index=9&type=chunk) [Basis of Preparation](index=7&type=section&id=2%20Basis%20of%20Preparation) The interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, applying the same accounting policies as the 2024 annual financial statements, and remains unaudited - The interim financial report is prepared in accordance with **IAS 34** and was authorized for issue on **August 28, 2025**[10](index=10&type=chunk) - The interim financial report is unaudited, but the comparative financial data for 2024 is extracted from the annual financial statements which received an unqualified opinion from the auditor[12](index=12&type=chunk) [Changes in Accounting Policies](index=8&type=section&id=3%20Changes%20in%20Accounting%20Policies) The amendment to IAS 21 was applied in this period, but it had no significant impact on the interim results as the Group did not engage in foreign currency non-exchangeable transactions - The Group has applied the amendment to **IAS 21**, but it had no significant impact on the interim results due to the absence of foreign currency non-exchangeable transactions[13](index=13&type=chunk) - No new standards or interpretations not yet effective were applied in this accounting period[14](index=14&type=chunk) [Revenue and Segment Reporting](index=8&type=section&id=4%20Revenue%20and%20Segment%20Reporting) The Group's revenue primarily derives from goods sales (retail and wholesale), commission income, and catering services sales, operating as a single segment mainly in China, thus no segment or geographical information is presented Disaggregation of Revenue from Contracts with Customers by Major Products | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Retail Business - General Sales | 261,639 | 262,033 | | Retail Business - Bulk Sales | 33,943 | 16,635 | | Wholesale | 441,087 | 355,509 | | Commission Income | 13,758 | 18,710 | | Catering Services Sales | 13,877 | 2,722 | | Rental Income from Operating Leases | 6,984 | 8,016 | | **Total Revenue** | **771,288** | **663,625** | - The Group has only one operating segment and primarily operates in China, thus no segment or geographical information is presented[18](index=18&type=chunk) [Other Income and Net Other Gains](index=9&type=section&id=5%20Other%20Income%20and%20Net%20Other%20Gains) Other income, mainly from service revenue and government grants, increased year-on-year, while net other gains decreased primarily due to a decline in net foreign exchange gains Details of Other Income | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Service Income | 2,707 | 2,338 | | Government Grants | 508 | 61 | | Dividend Income | 165 | 79 | | **Total** | **3,380** | **2,478** | Details of Net Other Gains | Gain Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Realized Gains from Structured Deposits and Wealth Management Products | 34 | 152 | | Net Foreign Exchange Gains | 210 | 970 | | Net Loss on Disposal of Property, Plant and Equipment | (2) | (51) | | Others | 174 | (36) | | **Total** | **416** | **1,035** | [Profit Before Tax](index=10&type=section&id=6%20Profit%20Before%20Tax) Profit before tax was influenced by net finance costs, inventory costs, depreciation, impairment losses, listing expenses, and auditor's remuneration, with net finance costs decreasing and listing expenses significantly increasing Net Finance Costs | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | (1,728) | (929) | | Interest Expense on Bank and Other Borrowings | 9,083 | 9,591 | | Interest Expense on Lease Liabilities | 1,850 | 2,714 | | **Net Finance Costs** | **9,205** | **11,376** | Other Major Expenses | Expense Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Inventories Recognized as Expense | 624,338 | 509,676 | | Depreciation Expense | 41,818 | 35,536 | | Impairment Losses on Trade and Other Receivables | 2,873 | 4,335 | | Listing Expenses | 12,552 | 7,040 | | Auditor's Remuneration | 1,855 | 1,575 | - Listing expenses increased from **RMB 7,040 thousands** in 2024 to **RMB 12,552 thousands** in 2025, significantly impacting profit before tax[22](index=22&type=chunk) [Income Tax](index=11&type=section&id=7%20Income%20Tax) Income tax expense increased year-on-year, primarily due to higher non-deductible listing expenses, with China income tax calculated at applicable corporate income tax rates and Hong Kong profits tax at 16.5% Details of Income Tax Expense | Tax Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Tax - Provision for the Period | 10,662 | 10,450 | | Deferred Tax - Origination and Reversal of Temporary Differences | (1,334) | (2,162) | | **Total Income Tax** | **9,328** | **8,288** | - The increase in income tax expense was primarily attributable to higher non-deductible listing expenses[59](index=59&type=chunk) [Earnings Per Share](index=11&type=section&id=8%20Earnings%20Per%20Share) Basic earnings per share decreased to RMB 0.07 from RMB 0.11 in the prior year, with diluted earnings per share being the same as basic earnings per share due to no potential dilutive ordinary shares Earnings Per Share Calculation | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Shareholders (RMB thousands) | 12,499 | 18,002 | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 187,466 | 160,685 | | **Basic and Diluted Earnings Per Share (RMB)** | **0.07** | **0.11** | - The company had no outstanding potential dilutive ordinary shares during the reporting period, thus diluted earnings per share were the same as basic earnings per share[26](index=26&type=chunk) [Inventories](index=11&type=section&id=9%20Inventories) During the reporting period, the reversal of inventory impairment provisions amounted to RMB 1.59 million, a significant increase compared to the prior year Reversal of Inventory Impairment Provisions | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Reversal of Inventory Impairment Provisions | 1,590 | 152 | [Trade and Bills Receivables](index=12&type=section&id=10%20Trade%20and%20Bills%20Receivables) Total trade and bills receivables significantly increased, driven by growth in both trade receivables and bills receivables, with most receivables expected to be recovered within one year Trade and Bills Receivables | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 213,841 | 173,007 | | Bills Receivables | 99,286 | 17,000 | | **Total** | **313,127** | **190,007** | Ageing Analysis of Trade Receivables | Ageing | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 200,614 | 122,506 | | Over 3 Months but Within 6 Months | 11,980 | 44,062 | | Over 6 Months but Within 9 Months | 1,051 | 3,293 | | Over 9 Months but Within 12 Months | 196 | 3,021 | | Over 12 Months | – | 125 | - The Group endorsed certain bank acceptance bills to suppliers to settle trade payables, which were derecognized, with a maximum exposure to loss of zero (2024: **RMB 107,608 thousands**)[29](index=29&type=chunk) [Prepayments, Deposits and Other Receivables](index=13&type=section&id=11%20Prepayments,%20Deposits%20and%20Other%20Receivables) Total prepayments, recoverable VAT, and other deposits and receivables increased, with most expected to be recovered or recognized as expenses within one year Prepayments, Deposits and Other Receivables | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments | 378,670 | 295,909 | | Recoverable VAT | 1,666 | 488 | | Other Deposits and Receivables | 30,067 | 23,824 | | Less: Loss Allowance | (2,168) | (2,168) | | **Total** | **408,235** | **318,053** | [Restricted Deposits and Cash and Cash Equivalents](index=13&type=section&id=12%20Restricted%20Deposits%20and%20Cash%20and%20Cash%20Equivalents) Restricted deposits increased while cash and cash equivalents decreased, with funds remitted out of mainland China subject to foreign exchange control regulations Restricted Deposits | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Pledged for Letters of Credit | 6,100 | 1,600 | Cash and Cash Equivalents | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Balances | 167,054 | 215,959 | | Cash on Hand | 848 | 899 | | **Total** | **167,902** | **216,858** | - Remittance of funds out of mainland China is subject to foreign exchange control regulations and rules[32](index=32&type=chunk) [Bank and Other Borrowings](index=14&type=section&id=13%20Bank%20and%20Other%20Borrowings) Total bank and other borrowings increased, with short-term borrowings constituting the largest portion, and most borrowings maturing within one year Bank and Other Borrowings | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term Bank and Other Borrowings | 527,463 | 409,265 | | Long-term Bank and Other Borrowings | 41,523 | 58,775 | | **Total** | **569,506** | **468,517** | Maturity Profile of Bank and Other Borrowings | Maturity Period | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 Year or On Demand | 527,959 | 409,688 | | After 1 Year but Within 2 Years | 37,397 | 48,787 | | After 2 Years but Within 5 Years | 4,150 | 10,042 | | **Total** | **569,506** | **468,517** | [Trade and Bills Payables](index=14&type=section&id=14%20Trade%20and%20Bills%20Payables) Total trade and bills payables decreased, with most expected to be settled within three months Trade and Bills Payables | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 83,039 | 110,285 | | Bills Payables | 100 | – | | **Total** | **83,139** | **110,285** | Ageing Analysis of Trade and Bills Payables | Ageing | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 63,664 | 89,894 | | 3 to 12 Months | 12,809 | 12,856 | | Over 12 Months | 6,666 | 7,535 | | **Total** | **83,139** | **110,285** | [Other Payables and Accruals](index=15&type=section&id=15%20Other%20Payables%20and%20Accruals) Total other payables and accruals increased, primarily driven by growth in other tax payables and other payables Other Payables and Accruals | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Staff-related Costs Payable | 5,982 | 15,878 | | Deposits Received | 14,054 | 12,423 | | Other Tax Payables | 22,542 | 12,169 | | Others | 56,599 | 48,054 | | **Total** | **99,177** | **88,524** | [Capital, Reserves and Dividends](index=15&type=section&id=16%20Capital,%20Reserves%20and%20Dividends) Share capital and capital reserves significantly increased due to the issuance of H shares through the initial public offering, with no dividends paid or declared during the reporting period Changes in Share Capital and Capital Reserves | Metric | Number of Ordinary Shares | Share Capital (RMB thousands) | Capital Reserves (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | December 31, 2024 | 160,684,910 | 160,685 | 147,996 | 308,681 | | Issuance of H Shares from IPO | 53,562,000 | 53,562 | 53,628 | 107,190 | | **June 30, 2025** | **214,246,910** | **214,247** | **201,624** | **415,871** | - The company issued **53,562,000 H shares** with a par value of **RMB 1.0** per share through a global offering on **March 31, 2025**, raising gross proceeds of approximately **RMB 123,568 thousands**[36](index=36&type=chunk) - The company neither paid nor declared any dividends for the six months ended June 30, 2025 and 2024[37](index=37&type=chunk) [Commitments](index=16&type=section&id=17%20Commitments) Authorized and contracted capital commitments significantly increased, reflecting future investment plans Unfulfilled Commitments | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Authorized and Contracted | 15,786 | 1,453 | [Significant Related Party Transactions](index=16&type=section&id=18%20Significant%20Related%20Party%20Transactions) Certain bank and other borrowings of the Group are guaranteed by controlling shareholders and key management personnel Related Party Guarantees | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Guarantees for Bank and Other Borrowings | 328,186 | 327,040 | - Certain financings granted to the Group are guaranteed by Mr. Gao Feng, a controlling shareholder, and his spouse Ms. Leng Yuemei, Mr. Zhang Jiaan, a controlling shareholder, and Ms. Yin Qin, a key management personnel[39](index=39&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's business, market conditions, and a detailed financial review, including key performance indicators and future strategies [Business Review and Outlook](index=17&type=section&id=Business%20Review%20and%20Outlook) The company primarily engages in grain and oil wholesale, supermarket and convenience store retail ("Hongxinlong" brand), and central kitchen catering services, with future plans to strengthen its market position through omnichannel strategies, smart stores, logistics efficiency, informatization, and market share expansion - The company's business covers supermarkets, convenience stores, mall retail, as well as grain and oil wholesale and catering services[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - Future strategies include enhancing the "offline stores + online platforms" omnichannel layout, preparing for unmanned smart stores, introducing unmanned logistics vehicles, improving informatization, and investing in R&D for new equipment[46](index=46&type=chunk) - The company plans to expand market share and the number of retail stores, increase warehousing and processing capabilities by establishing new distribution centers and central kitchens, and strengthen ERP and infrastructure systems to enhance operational efficiency[46](index=46&type=chunk) [Market and Industry Overview](index=18&type=section&id=Market%20and%20Industry%20Overview) China's economy continues to recover, supporting consumer spending and accelerating omnichannel transformation in retail; while the chain supermarket market declines due to e-commerce, small and medium-sized supermarkets show resilience, and convenience stores maintain strong growth, but department stores face decline - China's economy continued to recover in 2023, with **GDP growth of 5.2%**, rising per capita disposable income, and online retail accounting for **32.7%**[45](index=45&type=chunk) - The Chinese chain supermarket market had a **CAGR of -1.28%** from 2017-2023, projected to moderately recover to **1.43%** from 2024-2027[47](index=47&type=chunk) - Small and medium-sized supermarkets showed strong growth in Jiangsu Province and Yangzhou City, with an optimistic outlook expected for the coming years[47](index=47&type=chunk) - The convenience store market demonstrated strong growth nationwide and in Yangzhou, with continued expansion expected in the future[48](index=48&type=chunk) - The industry faces challenges such as intense market competition (especially from e-commerce), changing consumer preferences, and operational cost management[48](index=48&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) Revenue grew by 16.2% this period, driven by wholesale, bulk retail sales, and catering services; however, a larger increase in cost of sales, reduced high-end liquor sales, and increased listing expenses led to a decline in both gross profit and profit for the period [Revenue](index=19&type=section&id=Revenue) Total revenue increased by 16.2% year-on-year to RMB 771.3 million, with wholesale revenue up 24.1%, bulk retail sales up 104.0%, and catering services revenue up 409.8%, while operating lease rental income decreased by 12.9% Year-on-Year Changes in Revenue Breakdown | Revenue Source | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Wholesale | 441.1 | 355.5 | 24.1% | | Retail Operations - General Sales | 261.6 | 262.0 | -0.2% | | Retail Operations - Bulk Sales | 33.9 | 16.6 | 104.0% | | Catering Services Sales | 13.9 | 2.7 | 409.8% | | Operating Lease Rental Income | 7.0 | 8.0 | -12.9% | - Wholesale revenue growth was primarily due to the introduction of new categories of grain and oil and expansion into the northern Jiangsu market[49](index=49&type=chunk) - Bulk retail sales growth was mainly due to active expansion of group purchasing business with local enterprises and government agencies[50](index=50&type=chunk) - The significant increase in catering services revenue was primarily due to some schools resuming and restarting the catering tender process in the second half of 2024[50](index=50&type=chunk) [Cost of Sales](index=20&type=section&id=Cost%20of%20Sales) Cost of sales increased by 22.9% year-on-year to RMB 632.4 million, mainly due to increased costs from wholesale and bulk retail sales Changes in Cost of Sales | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 632.4 | 514.8 | 22.9% | - The increase in cost of sales was primarily attributable to higher wholesale and bulk sales costs in the retail business[51](index=51&type=chunk) [Gross Profit and Gross Profit Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit decreased by 6.7% year-on-year to RMB 138.9 million, with gross margin declining by 4.4 percentage points to 18.0%, mainly due to rising grain and oil costs, reduced high-end liquor sales, and increased festive promotions Changes in Gross Profit and Gross Profit Margin | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 138.9 | 148.9 | -6.7% | | Gross Profit Margin | 18.0% | 22.4% | -4.4 percentage points | - The decrease in gross profit margin was primarily attributable to a slight increase in grain and oil costs, a decline in high-end liquor sales volume, and increased festive promotional activities[52](index=52&type=chunk) [Other Income](index=20&type=section&id=Other%20Income) Other income increased by 36.0% year-on-year to RMB 3.4 million, mainly due to higher service revenue and government grants Changes in Other Income | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 3.4 | 2.5 | 36.0% | - Other income primarily includes service revenue from processing meals for two catering operators in Yangzhou and government grants[53](index=53&type=chunk) [Net Other Gains](index=21&type=section&id=Net%20Other%20Gains) Net other gains decreased by 59.6% year-on-year to RMB 0.4 million, mainly due to a reduction in net foreign exchange gains Changes in Net Other Gains | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Other Gains | 0.4 | 1.0 | -59.6% | - The decrease in net other gains was primarily due to a reduction in net foreign exchange gains[54](index=54&type=chunk) [Selling and Distribution Costs](index=21&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution costs decreased by 5.5% year-on-year to RMB 75.1 million, mainly due to reduced staff costs Changes in Selling and Distribution Costs | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Costs | 75.1 | 79.5 | -5.5% | - The decrease in selling and distribution costs was primarily due to reduced staff costs[55](index=55&type=chunk) [Administrative and Other Operating Expenses](index=21&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) Administrative and other operating expenses increased by 7.1% year-on-year to RMB 32.7 million, mainly due to higher listing expenses, partially offset by reduced staff costs Changes in Administrative and Other Operating Expenses | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative and Other Operating Expenses | 32.7 | 30.5 | 7.1% | - The increase in administrative and other operating expenses was primarily due to higher listing expenses, partially offset by reduced staff costs[56](index=56&type=chunk) [Impairment Losses on Trade and Other Receivables](index=21&type=section&id=Impairment%20Losses%20on%20Trade%20and%20Other%20Receivables) Impairment losses on financial assets decreased by RMB 1.5 million year-on-year to RMB 2.9 million, mainly due to a reduction in trade receivables Changes in Impairment Losses | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Impairment Losses on Trade and Other Receivables | 2.9 | 4.3 | -1.5 | - The decrease in impairment losses was primarily due to a reduction in trade receivables compared to the prior year[57](index=57&type=chunk) [Net Finance Costs](index=21&type=section&id=Net%20Finance%20Costs) Net finance costs decreased by RMB 2.2 million year-on-year to RMB 9.2 million, mainly due to increased bank deposit interest income and reduced interest expenses on lease liabilities Changes in Net Finance Costs | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 9.2 | 11.4 | -2.2 | - The decrease in net finance costs was primarily due to increased bank deposit interest income and reduced interest expenses on lease liabilities[58](index=58&type=chunk) [Income Tax](index=21&type=section&id=Income%20Tax) Income tax expense increased by 12.1% year-on-year to RMB 9.3 million, primarily due to higher non-deductible listing expenses Changes in Income Tax Expense | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 9.3 | 8.3 | 12.1% | - The increase in income tax expense was primarily due to higher non-deductible listing expenses[59](index=59&type=chunk) [Profit for the Period](index=22&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased by 26.6% year-on-year to RMB 13.5 million, primarily attributable to increased listing expenses Changes in Profit for the Period | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 13.5 | 18.4 | -26.6% | - The decrease in profit for the period was primarily due to increased listing expenses[60](index=60&type=chunk) [Non-IFRS Measures](index=22&type=section&id=Non-IFRS%20Measures) To supplement IFRS, the company presents adjusted net profit and adjusted net profit margin (non-IFRS measures) by adding back listing expenses to provide a fairer assessment of operating performance - Adjusted net profit is defined as profit for the period adjusted by adding back listing expenses, aiming to provide an overall and fair understanding of operating results and financial performance[63](index=63&type=chunk)[64](index=64&type=chunk) Adjusted Net Profit and Adjusted Net Profit Margin | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 13,516 | 18,421 | | Add back: Listing Expenses | 12,552 | 7,040 | | **Adjusted Net Profit** | **26,068** | **25,461** | | **Adjusted Net Profit Margin** | **3.4%** | **3.8%** | [Financial Position](index=23&type=section&id=Financial%20Position) Shareholders' equity increased from RMB 540.9 million as of June 30, 2024, to RMB 662.5 million as of December 31, 2025, primarily due to the global offering and profit for the period Changes in Shareholders' Equity | Metric | As of December 31, 2025 (RMB millions) | As of June 30, 2024 (RMB millions) | | :--- | :--- | :--- | | Shareholders' Equity | 662.5 | 540.9 | - The increase in shareholders' equity was primarily due to the global offering and profit for the period[65](index=65&type=chunk) [Liquidity and Financial Resources, Treasury Policy and Capital Structure](index=23&type=section&id=Liquidity%20and%20Financial%20Resources,%20Treasury%20Policy%20and%20Capital%20Structure) The Group maintains a sound financial position with an improved current ratio; cash and cash equivalents decreased, and net cash used in operating activities increased. Bank borrowings are RMB-denominated and comply with financial covenants, with no hedging activities undertaken Liquidity and Financial Resources | Metric | As of June 30, 2025 (RMB millions) | As of December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 167.9 | 216.9 | | Net Cash Used in Operating Activities | 141.8 | 45.4 | | Total Current Assets | 1,212.3 | 1,056.6 | | Total Current Liabilities | 861.9 | 774.6 | | Current Ratio | 1.41 | 1.36 | - Total long-term bank and other borrowings amounted to **RMB 41.5 million**, while total short-term bank and other borrowings amounted to **RMB 528.0 million**[67](index=67&type=chunk) - The Group had unutilized bank facilities of approximately **RMB 20.1 million** and did not engage in any hedging activities for financial instruments[67](index=67&type=chunk) - The company's share capital comprises H shares and unlisted shares, with no changes in capital structure since the listing date[68](index=68&type=chunk) [Capital Expenditure](index=24&type=section&id=Capital%20Expenditure) Capital expenditure for the period was RMB 71.3 million, primarily for property, plant and equipment, financial assets, and interests in associates. Funding mainly came from operating cash, with future plans to utilize existing cash, borrowings, and global offering proceeds Capital Expenditure | Metric | For H1 2025 (RMB millions) | | :--- | :--- | | Capital Expenditure | 71.3 | - Capital expenditure primarily included the acquisition of property, plant and equipment, financial assets measured at fair value through other comprehensive income, and interests in associates[69](index=69&type=chunk) - The company intends to fund future capital expenditure and long-term investments using existing cash balances, bank and other borrowings, and proceeds from the global offering[69](index=69&type=chunk) [Pledge of Assets](index=24&type=section&id=Pledge%20of%20Assets) The Group pledged land use rights, plant, and buildings with a total net book value of RMB 56.3 million as collateral for bank and other borrowings amounting to RMB 376.8 million - The Group pledged land use rights with a net book value of **RMB 27.6 million** and plant and buildings with a net book value of **RMB 28.7 million** as collateral for bank and other borrowings amounting to **RMB 376.8 million**[70](index=70&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[71](index=71&type=chunk) [Share Pledges](index=25&type=section&id=Share%20Pledges) During the reporting period, controlling shareholders did not pledge their equity interests in shares to provide debt guarantees or support - During the reporting period, controlling shareholders did not pledge their interests in shares to provide debt guarantees or other support for their obligations[72](index=72&type=chunk) [Gearing Ratio](index=25&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 86.0%, a slight decrease compared to 86.6% as of December 31, 2024 Gearing Ratio | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 86.0% | 86.6% | [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) The Group invested RMB 25.0 million in Haike (18% stake) and HKD 20.0 million (approximately RMB 18.3 million) in Hanhong (40% stake), classified as financial assets at fair value through other comprehensive income and an associate, respectively, with these transactions not constituting notifiable transactions under the Listing Rules - The Group invested **RMB 25.0 million** in Haike Hongxin Digital Technology (Jiangsu) Co., Ltd. (18% stake), classifying the investment as financial assets at fair value through other comprehensive income[74](index=74&type=chunk) - The Group invested **HKD 20.0 million** (approximately **RMB 18.3 million**) in Hanhong Holdings Limited (40% stake), classifying it as an associate[74](index=74&type=chunk) - Haike is primarily engaged in providing IT-related information services, while Hanhong is primarily engaged in providing business consulting services[74](index=74&type=chunk) [Future Plans for Material Investments and Capital Assets](index=25&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no other plans for material investments and capital assets beyond those disclosed in the prospectus - As of June 30, 2025, the Group had no plans for material investments and capital assets, other than those disclosed in the "Future Plans and Use of Proceeds" section of the prospectus[76](index=76&type=chunk) [Foreign Currency Fluctuation Risk](index=26&type=section&id=Foreign%20Currency%20Fluctuation%20Risk) Most of the Group's assets, liabilities, and cash flows are RMB-denominated, so the depreciation of RMB against HKD had no significant impact on conversion; the company undertook no hedging activities and will continue to monitor foreign currency markets - Most of the Group's assets, liabilities, and cash flows are denominated in RMB, and the depreciation of RMB against HKD had no significant impact on conversion[77](index=77&type=chunk) - For the six months ended June 30, 2025, the Group did not engage in any hedging activities and has no intention to do so in the foreseeable future[77](index=77&type=chunk) [Material Investments and Events During the Reporting Period](index=26&type=section&id=Material%20Investments%20and%20Events%20During%20the%20Reporting%20Period) As of June 30, 2025, the Group had not undertaken any material investments (where the investment value accounted for 5% or more of total assets) - As of June 30, 2025, the Group had not undertaken any material investments (including any investment in investee companies where the value accounted for 5% or more of the Group's total assets as of June 30, 2025)[78](index=78&type=chunk) [Events After the Reporting Period](index=26&type=section&id=Events%20After%20the%20Reporting%20Period) No other events with a material impact on the Group occurred after the reporting period and up to the date of this announcement, other than those disclosed herein - Other than those disclosed in this announcement, no other events with a material impact on the Group occurred after June 30, 2025, and up to the date of this announcement[79](index=79&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's corporate governance practices, employee policies, dividend declarations, global offering specifics, and compliance with regulatory standards [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 1,412 employees, with total employee benefits decreasing year-on-year. The company contributes to social insurance and housing provident funds, despite some underpayment, and focuses on internal training for retention and management development Employee Headcount and Benefits | Metric | As of June 30, 2025 | | :--- | :--- | | Total Employees | 1,412 | | Total Employee Benefits (RMB millions) | 43.7 | | Total Employee Benefits as of June 30, 2024 (RMB millions) | 52.2 | Employee Functional Classification | Function | Headcount | | :--- | :--- | | Management | 13 | | Administration | 104 | | Finance and IT | 42 | | Marketing | 11 | | Procurement | 24 | | Logistics | 69 | | Operations | 1,149 | | **Total** | **1,412** | - The company had not fully paid social insurance and housing provident fund contributions for all employees, but no administrative actions, fines, or penalties were incurred during the reporting period[84](index=84&type=chunk) - The company enhances employee retention through internal training programs and cultivates management candidates for business expansion[86](index=86&type=chunk) [Corporate Governance](index=28&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards and has fully complied with all principles and applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules since its listing date - The company adopted the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules as its own corporate governance code since its listing date[87](index=87&type=chunk) - From the listing date to June 30, 2025, the company has consistently complied with all principles and applicable code provisions contained in Part 2 of the Corporate Governance Code[87](index=87&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board recommended not to declare an interim dividend for the six months ended June 30, 2025 - The Board recommended not to declare an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[88](index=88&type=chunk) [Global Offering](index=29&type=section&id=Global%20Offering) The company's H shares were listed on the HKEX Main Board on March 31, 2025, with a global offering of 53,562,000 H shares at an offer price of HKD 2.50 per share, and the over-allotment option has not yet been exercised - The company's H shares were listed on the Main Board of the Stock Exchange on **March 31, 2025**, with a global offering of **53,562,000 H shares**[89](index=89&type=chunk) - The H shares were issued at an offer price of **HKD 2.50** per share, and the over-allotment option has not yet been exercised by the overall coordinator[89](index=89&type=chunk) [Use of Proceeds from Global Offering](index=29&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the global offering were approximately HKD 89.04 million, lower than estimated due to higher actual listing expenses. The company adjusted the planned use of net proceeds accordingly and has utilized approximately HKD 21.7 million - The net proceeds from the global offering were approximately **HKD 89.04 million**, lower than the **HKD 92.55 million** disclosed in the prospectus, mainly due to higher actual listing expenses (approximately **RMB 41.4 million**) than estimated[90](index=90&type=chunk)[91](index=91&type=chunk) - As of the date of this announcement, the company has utilized approximately **HKD 21.7 million** of the net proceeds from the global offering[92](index=92&type=chunk) Details of Use of Net Proceeds from Global Offering | Use | Estimated Allocation in Prospectus (HKD millions) | Revised Allocation after Actual Listing Expenses (HKD millions) | Utilized (HKD millions) | Remaining Amount (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Opening New Retail Stores | 32.5 | 27.5 | 20.7 | 6.8 | | Establishing New Distribution Centers | 43.3 | 36.7 | – | 36.7 | | Establishing New Central Kitchens | 28.1 | 23.9 | – | 23.9 | | Enhancing ERP System and Infrastructure Systems | 1.2 | 1.0 | 1.0 | – | | **Total** | **105.1** | **89.1** | **21.7** | **67.4** | [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) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities from the listing date 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 from the listing date up to the date of this announcement[94](index=94&type=chunk) [Standard Code for Securities Transactions by Directors and Supervisors](index=31&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The company adopted the Standard Code to regulate securities transactions by directors, supervisors, and relevant employees, and all directors and supervisors confirmed strict compliance with its provisions - The company has adopted the Standard Code to regulate all dealings in the company's securities by directors, supervisors, and relevant employees[95](index=95&type=chunk) - All directors and supervisors confirmed strict compliance with the required standards set out in the Standard Code from the listing date up to the date of this announcement[95](index=95&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The Audit Committee, comprising four independent non-executive directors and one non-executive director, reviewed the unaudited interim consolidated results, confirming compliance with accounting principles, standards, and disclosure requirements - The Audit Committee comprises four independent non-executive directors (Mr. Lam Ka Tak, Mr. Zheng Manjun, Mr. Zheng Yu, and Mr. Zhu Bo) and one non-executive director (Ms. Wei Yan)[96](index=96&type=chunk) - The Audit Committee reviewed the unaudited interim consolidated results for the six months ended June 30, 2025, and confirmed compliance with applicable accounting principles, standards, and requirements, as well as adequate disclosure[96](index=96&type=chunk) [Publication of Interim Results and Interim Report](index=31&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement has been published on the HKEX and company websites, and the interim report will be made available to shareholders in due course - The interim results announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.hxsupermarket.cn)[97](index=97&type=chunk) [Board of Directors](index=32&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors includes seven executive directors, one non-executive director, and four independent non-executive directors - The Board of Directors comprises seven executive directors, one non-executive director, and four independent non-executive directors[98](index=98&type=chunk)

[GEM Characteristics and Disclaimer](index=2&type=section&id=GEM%20Characteristics%20and%20Disclaimer) This section outlines the characteristics of the GEM market, a listing platform for high-risk small and medium-sized companies, emphasizing investor caution regarding potential risks, with directors assuming full responsibility for report accuracy - The GEM market is positioned as a listing platform for high-investment-risk small and medium-sized companies, where securities may be subject to greater market volatility and high liquidity is not guaranteed[2](index=2&type=chunk) - The Company's directors jointly and individually assume full responsibility for the information in this report, confirming its accuracy, completeness, and absence of misleading or fraudulent content[3](index=3&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents Cool Link (Holdings) Limited's unaudited condensed consolidated financial statements for the six months ended 30 June 2025, including comprehensive income, financial position, equity changes, and cash flows, compared to 2024 [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended 30 June 2025, the Group achieved a profit of **S$105 thousand**, a significant improvement from a **S$374 thousand loss** in 2024, driven by cost of sales control and reduced administrative expenses Unaudited Condensed Consolidated Statement of Comprehensive Income Key Data for the Six Months Ended 30 June 2025 | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 14,230 | 14,678 | (448) | -3.05% | | Cost of Sales | (10,357) | (10,813) | 456 | -4.22% | | Gross Profit | 3,873 | 3,865 | 8 | 0.21% | | Other Income and Other Gains | 153 | 141 | 12 | 8.51% | | Selling and Distribution Costs | (1,104) | (1,472) | 368 | -25.00% | | Administrative and Other Operating Expenses | (2,442) | (2,584) | 142 | -5.49% | | Finance Costs | (240) | (200) | (40) | 20.00% | | Profit/(Loss) Before Income Tax | 240 | (272) | 512 | -188.24% | | Income Tax Expense | (135) | (102) | (33) | 32.35% | | Profit/(Loss) for the Period Attributable to Owners of the Company | 105 | (374) | 479 | -128.07% | | Basic and Diluted Earnings/(Loss) Per Share (Singapore cents) | 0.03 | (0.16) | 0.19 | -118.75% | - A profit of **S$105 thousand** was achieved in the first half of 2025, compared to a loss of **S$374 thousand** in the same period of 2024, primarily due to reduced selling and distribution expenses[4](index=4&type=chunk)[50](index=50&type=chunk) - Exchange differences resulted in an increase in other comprehensive expenses, amounting to **S$269 thousand** in the first half of 2025, compared to **S$74 thousand** in the same period of 2024[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As at 30 June 2025, the Group's total assets slightly decreased, while net current assets increased, maintaining a robust asset-liability structure with minor reductions in non-current liabilities and total equity Unaudited Condensed Consolidated Statement of Financial Position Key Data as at 30 June 2025 | Metric | 30 June 2025 (S$ thousand) | 31 December 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Non-current Assets | 14,676 | 15,411 | (735) | -4.77% | | Total Current Assets | 21,380 | 21,516 | (136) | -0.63% | | Total Current Liabilities | 6,243 | 6,681 | 438 | -6.56% | | Net Current Assets | 15,137 | 14,835 | 302 | 2.04% | | Total Assets Less Current Liabilities | 29,813 | 30,246 | (433) | -1.43% | | Total Non-current Liabilities | 6,585 | 6,854 | 269 | -3.93% | | Net Assets | 23,228 | 23,392 | (164) | -0.70% | | Total Equity | 23,228 | 23,392 | (164) | -0.70% | - Inventories decreased from **S$7,317 thousand** as at 31 December 2024 to **S$6,639 thousand** as at 30 June 2025[6](index=6&type=chunk) - Cash and cash equivalents increased from **S$6,842 thousand** as at 31 December 2024 to **S$8,214 thousand** as at 30 June 2025[6](index=6&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended 30 June 2025, total equity attributable to owners of the Company slightly decreased, primarily due to exchange differences from overseas financial statement translation, despite improved profit for the period Unaudited Condensed Consolidated Statement of Changes in Equity Key Data for the Six Months Ended 30 June 2025 | Metric | 30 June 2025 (S$ thousand) | 1 January 2024 (S$ thousand) | | :--- | :--- | :--- | | Share Capital | 13,877 | 3,471 | | Share Premium | 22,820 | 16,063 | | Shares Held for Share Award Scheme | (3,123) | (791) | | Translation Reserve | (207) | 115 | | Other Reserves | 2,490 | 2,490 | | Financial Assets at Fair Value Through Other Comprehensive Income Reserve | (1,800) | (816) | | Retained Profits/(Accumulated Losses) | (10,829) | (6,773) | | **Total** | **23,228** | **13,759** | - Profit for the period of **S$105 thousand** was recorded in the first half of 2025, compared to a loss of **S$374 thousand** in the same period of 2024[8](index=8&type=chunk) - Exchange differences arising from the translation of overseas operations' financial statements led to an increase in other comprehensive expenses of **S$269 thousand** in the first half of 2025[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended 30 June 2025, the Group's operating cash flow turned positive, investing cash outflow decreased, financing cash outflow significantly reduced, and cash and cash equivalents increased at period-end Unaudited Condensed Consolidated Statement of Cash Flows Key Data for the Six Months Ended 30 June 2025 | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | | :--- | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 2,014 | (3,285) | 5,299 | | Net Cash Used In Investing Activities | (44) | (307) | 263 | | Net Cash Used In/(From) Financing Activities | (594) | 11,108 | (11,702) | | Net Increase In Cash and Cash Equivalents | 1,376 | 7,516 | (6,140) | | Cash and Cash Equivalents at End of Period | 8,214 | 9,044 | (830) | - Net cash from operating activities turned from a **S$3,285 thousand** outflow in the same period of 2024 to a **S$2,014 thousand** inflow in the same period of 2025, primarily due to improved working capital movements[9](index=9&type=chunk) - Expenditure on property, plant and equipment acquisitions decreased from **S$307 thousand** in the same period of 2024 to **S$44 thousand** in the same period of 2025[10](index=10&type=chunk) - Cash outflow from financing activities primarily included repayment of bank borrowings and lease liabilities, whereas the same period in 2024 included net proceeds from a rights issue[10](index=10&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering company information, accounting policies, revenue, expenses, asset/liability details, share capital, share option schemes, and fair value measurements, offering context and supplementary information [1. Company Information](index=10&type=section&id=1.%20Company%20Information) Cool Link (Holdings) Limited, incorporated in the Cayman Islands with its principal place of business in Singapore, primarily engages in investment holding, with the Group mainly involved in food and healthcare product supply - The Company was incorporated in the Cayman Islands on 27 January 2017, with its principal place of business in Singapore[11](index=11&type=chunk) - The Company's principal business is investment holding, and the Group is primarily engaged in the supply of food and healthcare products[12](index=12&type=chunk) [2. Basis of Preparation](index=10&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and GEM Listing Rules, adopting consistent accounting policies with no significant changes from new/revised HKFRSs effective 1 January 2025 - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the GEM Listing Rules[13](index=13&type=chunk) - The accounting policies adopted are consistent with those used in the 2024 annual financial statements, and newly adopted standards have not resulted in significant changes[13](index=13&type=chunk) [3. Adoption of New and Revised Hong Kong Financial Reporting Standards](index=11&type=section&id=3.%20Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group has adopted new and revised HKFRSs effective 1 January 2025, including amendments to HKAS 21 'Lack of Exchangeability', with no significant impact expected on the condensed consolidated interim financial statements - New and revised Hong Kong Financial Reporting Standards effective 1 January 2025 have been adopted, including amendments to Hong Kong Accounting Standard 21 "Lack of Exchangeability"[14](index=14&type=chunk)[15](index=15&type=chunk) - The new and revised Hong Kong Financial Reporting Standards are not expected to have a significant impact on the Group's condensed consolidated interim financial statements[15](index=15&type=chunk) [4. Revenue](index=11&type=section&id=4.%20Revenue) For the six months ended 30 June 2025, the Group's revenue was **S$14,230 thousand**, a decrease from **S$14,678 thousand** in 2024, primarily from the sale of goods Revenue Composition | Revenue Source | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Sale of Goods | 14,230 | 14,678 | (448) | -3.05% | | Timing of Revenue Recognition | At a point in time | At a point in time | - | - | [5. Other Income and Other (Losses) and Gains](index=12&type=section&id=5.%20Other%20Income%20and%20Other%20(Losses)%20and%20Gains) For the six months ended 30 June 2025, the Group's total other income and gains increased to **S$153 thousand** from **S$141 thousand** in 2024, primarily due to a significant rise in interest income Other Income and Gains Composition | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Interest Income | 175 | 20 | 155 | 775.00% | | Rental Income from Investment Properties | 30 | 98 | (68) | -69.39% | | Fair Value Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss | 2 | (1) | 3 | -300.00% | | Government Grants | 22 | 45 | (23) | -51.11% | | Others | (76) | (21) | (55) | 261.90% | | **Total** | **153** | **141** | **12** | **8.51%** | [6. Finance Costs](index=12&type=section&id=6.%20Finance%20Costs) For the six months ended 30 June 2025, the Group's finance costs increased to **S$240 thousand**, up from **S$200 thousand** in 2024, primarily due to increased interest on borrowings Finance Costs Composition | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Interest on Borrowings | 178 | 66 | 112 | 169.70% | | Finance Charges on Lease Liabilities | 62 | 63 | (1) | -1.59% | | Interest on Promissory Notes | – | 71 | (71) | -100.00% | | **Total** | **240** | **200** | **40** | **20.00%** | [7. Profit/(Loss) Before Income Tax](index=13&type=section&id=7.%20Profit%2F(Loss)%20Before%20Income%20Tax) For the six months ended 30 June 2025, the Group's profit before income tax was **S$240 thousand**, a significant improvement from a **S$272 thousand loss** in 2024, primarily due to reduced cost of sales and employee benefit expenses Factors Affecting Profit/(Loss) Before Income Tax | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Cost of Inventories Recognized as Expense — Cost of Goods Sold | 10,357 | 10,521 | (164) | -1.56% | | Depreciation of Property, Plant and Equipment | 361 | 355 | 6 | 1.69% | | Depreciation of Right-of-Use Assets | 128 | 195 | (67) | -34.36% | | Employee Benefit Expenses (Including Directors' Emoluments) | 1,704 | 2,025 | (321) | -15.85% | | Net Exchange Loss | (80) | (19) | (61) | 321.05% | [8. Income Tax Expense](index=14&type=section&id=8.%20Income%20Tax%20Expense) For the six months ended 30 June 2025, the Group's income tax expense increased to **S$135 thousand**, up from **S$102 thousand** in 2024, primarily due to higher current tax in Singapore Income Tax Expense Composition | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Current Tax — Singapore | (156) | (107) | (49) | 45.79% | | Deferred Tax | 21 | 5 | 16 | 320.00% | | **Total** | **(135)** | **(102)** | **(33)** | **32.35%** | [9. Earnings/(Loss) Per Share](index=14&type=section&id=9.%20Earnings%2F(Loss)%20Per%20Share) For the six months ended 30 June 2025, the Company's basic earnings per share was **0.03 Singapore cents**, a significant improvement from a **0.16 Singapore cents loss** per share in 2024, primarily due to the period's profit turnaround Earnings/(Loss) Per Share Data | Metric | 2025 (Singapore cents) | 2024 (Singapore cents) | Change (Singapore cents) | | :--- | :--- | :--- | :--- | | Basic and Diluted Earnings/(Loss) Per Share | 0.03 | (0.16) | 0.19 | Number of Shares | Metric | 2025 (thousand shares) | 2024 (thousand shares) | Change (thousand shares) | Change Rate | | :--- | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares | 398,606 | 234,346 | 164,260 | 70.10% | - Profit attributable to owners of the Company for the first half of 2025 was approximately **S$105,000**, compared to a loss of approximately **S$374,000** in the same period of 2024[22](index=22&type=chunk) - Diluted earnings per share is the same as basic earnings per share as the Group has no potential dilutive ordinary shares[23](index=23&type=chunk) [10. Dividends](index=15&type=section&id=10.%20Dividends) The Board does not recommend paying any dividends for the six months ended 30 June 2025, consistent with the same period in 2024 - The Board does not recommend paying any dividends for the six months ended 30 June 2025[24](index=24&type=chunk) [11. Property, Plant and Equipment](index=15&type=section&id=11.%20Property,%20Plant%20and%20Equipment) For the six months ended 30 June 2025, the Group's expenditure on property, plant and equipment acquisitions was **S$44 thousand**, a significant decrease from **S$307 thousand** in 2024, primarily for product delivery Property, Plant and Equipment Acquisitions | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 44 | 307 | (263) | -85.67% | [12. Goodwill](index=15&type=section&id=12.%20Goodwill) As at 30 June 2025, the Group's goodwill net carrying amount was **zero**, due to a recognized impairment loss of **S$2,577 thousand** Goodwill Net Carrying Amount | Item | 30 June 2025 (S$ thousand) | 31 December 2024 (S$ thousand) | | :--- | :--- | :--- | | At Beginning of Reporting Period | 2,577 | 2,577 | | Impairment Loss Recognized | (2,577) | (2,577) | | **At End of Reporting Period** | **–** | **–** | [13. Trade Receivables](index=16&type=section&id=13.%20Trade%20Receivables) As at 30 June 2025, the Group's net trade receivables were **S$5,596 thousand**, a slight decrease from **S$5,767 thousand** as at 31 December 2024, with a significant increase in receivables aged 31 to 90 days Trade Receivables and Aging Analysis | Item | 30 June 2025 (S$ thousand) | 31 December 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade Receivables | 5,656 | 5,860 | (204) | -3.48% | | Less: Provision for Expected Credit Losses | (60) | (93) | 33 | -35.48% | | **Net** | **5,596** | **5,767** | **(171)** | **-2.97%** | | **Aging Analysis:** | | | | | | 0 to 30 days | 2,441 | 4,602 | (2,161) | -46.96% | | 31 to 90 days | 3,104 | 1,144 | 1,960 | 171.33% | | 91 to 180 days | 79 | 21 | 58 | 276.19% | | Over 180 days | 32 | – | 32 | - | - The credit period for trade receivables is generally from cash on delivery to **60 days**[27](index=27&type=chunk) [14. Trade Payables](index=17&type=section&id=14.%20Trade%20Payables) As at 30 June 2025, the Group's trade payables were **S$3,320 thousand**, a slight increase from **S$3,231 thousand** as at 31 December 2024, with payables aged over 180 days remaining stable Trade Payables and Aging Analysis | Item | 30 June 2025 (S$ thousand) | 31 December 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade Payables | 3,320 | 3,231 | 89 | 2.75% | | **Aging Analysis:** | | | | | | 0 to 30 days | 1,426 | 1,842 | (416) | -22.58% | | 31 to 90 days | 710 | 362 | 348 | 96.13% | | 91 to 180 days | 157 | – | 157 | - | | Over 180 days | 1,027 | 1,027 | – | 0.00% | - The credit period for trade payables is generally from cash on delivery to **60 days**[28](index=28&type=chunk) [15. Bank Borrowings](index=17&type=section&id=15.%20Bank%20Borrowings) As at 30 June 2025, the Group's total secured mortgage loans were **S$4,784 thousand**, a decrease from **S$5,006 thousand** as at 31 December 2024, with most classified as non-current liabilities Bank Borrowings Composition | Item | 30 June 2025 (S$ thousand) | 31 December 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Secured Mortgage Loans | 4,784 | 5,006 | (222) | -4.43% | | **Classified as:** | | | | | | Non-current Liabilities | 4,352 | 4,571 | (219) | -4.79% | | Current Liabilities | 432 | 435 | (3) | -0.69% | [16. Share Capital](index=18&type=section&id=16.%20Share%20Capital) As at 30 June 2025, the Company's issued share capital was **S$13,877 thousand**, with **398,606,168 ordinary shares**, consistent with 31 December 2024, primarily due to a rights issue completed on 10 April 2024 Share Capital Movement | Item | Number of Ordinary Shares | Nominal Value of Ordinary Shares (S$ thousand) | | :--- | :--- | :--- | | At 1 January 2024 | 99,652,000 | 3,471 | | Shares Issued After Rights Issue | 298,954,168 | 10,406 | | **At 30 June 2025** | **398,606,168** | **13,877** | - A rights issue was completed on 10 April 2024, issuing **298,956,000 rights shares** and raising gross proceeds of approximately **HK$100.2 million**[29](index=29&type=chunk) [17. Share Option Scheme](index=19&type=section&id=17.%20Share%20Option%20Scheme) The Company has a share option scheme, effective 30 August 2017 for nine years, to reward eligible participants contributing to the Group's business, with strict limits on options granted and exercise prices - The share option scheme aims to provide incentives and rewards to eligible participants who have contributed to the Group's business success[30](index=30&type=chunk) - The scheme became effective on 30 August 2017 and has a validity period of **nine years**[30](index=30&type=chunk) - The exercise price of share options shall not be less than the highest of the closing price, the average closing price, and the nominal value[31](index=31&type=chunk) [18. Capital Commitments](index=20&type=section&id=18.%20Capital%20Commitments) As at 30 June 2025, the Group had no capital commitments, consistent with the situation as at 31 December 2024 - As at 30 June 2025, the Group had no capital commitments[33](index=33&type=chunk) [19. Related Party Transactions](index=20&type=section&id=19.%20Related%20Party%20Transactions) For the six months ended 30 June 2025, total remuneration for the Group's key management personnel was **S$442 thousand**, a decrease from **S$477 thousand** in 2024 Key Management Personnel Remuneration | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Short-term Employee Benefits | 417 | 451 | (34) | -7.54% | | Defined Contribution | 25 | 26 | (1) | -3.85% | | **Total** | **442** | **477** | **(35)** | **-7.34%** | [20. Fair Value Measurement](index=20&type=section&id=20.%20Fair%20Value%20Measurement) The Group's financial assets are measured at fair value across three levels, primarily including Level 1 Hong Kong listed equity securities and Level 3 unlisted equity investments as at 30 June 2025, with no transfers between levels during the reporting period Fair Value Hierarchy Disclosure (30 June 2025) | Item | Level 1 (S$ thousand) | Level 2 (S$ thousand) | Level 3 (S$ thousand) | Total (S$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss — Hong Kong Listed Equity Securities | 14 | – | – | 14 | | Financial Assets at Fair Value Through Other Comprehensive Income: Unlisted Equity Investments | – | – | 2,075 | 2,075 | | **Total** | **14** | **–** | **2,075** | **2,089** | - There were no transfers between Level 1, Level 2, and Level 3 during the reporting period[37](index=37&type=chunk) - The methods and valuation techniques used for fair value measurement remained unchanged from prior reporting periods[38](index=38&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business performance and financial position for the six months ended 30 June 2025, discusses future challenges, opportunities, and details financial metrics, capital structure, liquidity, employee policies, and use of rights issue proceeds [Business Review](index=23&type=section&id=Business%20Review) The Group primarily supplies food and healthcare products to ship chandlers, retailers, and related service industries, also offering value-added food processing services, achieving profit in H1 2025 mainly due to reduced selling and distribution expenses - The Group is primarily engaged in the supply of food and healthcare products to customers including ship chandlers, retailers, and related service industries[41](index=41&type=chunk) - Products supplied include dry goods (canned food, packaged beverages), chilled goods (dairy products), and frozen goods (ice cream, cakes, pies)[42](index=42&type=chunk) - A profit of approximately **S$105 thousand** was recorded in the first half of 2025, compared to a loss of approximately **S$374 thousand** in the same period of 2024, primarily due to a reduction in selling and distribution expenses of approximately **S$0.4 million**[42](index=42&type=chunk) [Outlook](index=24&type=section&id=Outlook) Facing ongoing geopolitical risks and interest rate changes, the Group's future remains uncertain; however, the company will continue to promote its brand, offer quality products, explore diverse opportunities to broaden revenue, and optimize its business model for sustainable growth and profitability - Ongoing geopolitical risks, the Russia-Ukraine war, and interest rate changes are weighing on the global economy, posing challenges to the Group's future outlook[43](index=43&type=chunk) - The Group will continue to promote its brand, provide quality products, seize business opportunities in various regions, and explore diverse opportunities to broaden revenue sources and enhance market share[43](index=43&type=chunk) - The Board remains optimistic and will take necessary actions to minimize the impact on core businesses, while committing to business expansion for sustainable growth and profitability[43](index=43&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) This section details the Group's financial performance for the six months ended 30 June 2025, including decreased revenue, improved gross margin, reduced selling and distribution and administrative expenses, increased finance costs, and ultimately achieving profit for the period [Revenue](index=24&type=section&id=Revenue) For the six months ended 30 June 2025, the Group's revenue was approximately **S$14.2 million**, a year-on-year decrease of approximately **3.4%**, mainly due to reduced sales volume of frozen products Revenue Change | Metric | 2025 (S$ million) | 2024 (S$ million) | Change (S$ million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 14.2 | 14.7 | (0.5) | -3.4% | - The decrease in revenue was mainly due to a reduction in the sales volume of frozen products[44](index=44&type=chunk) [Cost of Sales](index=24&type=section&id=Cost%20of%20Sales) For the six months ended 30 June 2025, the Group's cost of sales remained at a similar level compared to the same period last year - The Group's cost of sales remained at a similar level during both periods[45](index=45&type=chunk) [Gross Profit and Gross Margin](index=25&type=section&id=Gross%20Profit%20and%20Gross%20Margin) For the six months ended 30 June 2025, the Group's gross profit remained at **S$3.8 million**, with the gross margin increasing from **26.5% to 27.5%**, primarily due to effective cost control Gross Profit and Gross Margin Change | Metric | 2025 (S$ million) | 2024 (S$ million) | Change (S$ million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 3.8 | 3.8 | 0.0 | 0.0% | | Gross Margin | 27.5% | 26.5% | 1.0% | 3.77% | - The increase in gross margin was mainly due to effective cost control[46](index=46&type=chunk) [Selling and Distribution Costs](index=25&type=section&id=Selling%20and%20Distribution%20Costs) For the six months ended 30 June 2025, the Group's selling and distribution costs decreased by approximately **25%** to **S$1,104 thousand**, mainly due to reduced advertising and promotion expenses Selling and Distribution Costs Change | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Selling and Distribution Costs | 1,104 | 1,472 | (368) | -25.0% | - The decrease in selling and distribution costs was mainly due to reduced advertising and promotion expenses[47](index=47&type=chunk) [Administrative and Other Operating Expenses](index=25&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) For the six months ended 30 June 2025, the Group's administrative and other operating expenses decreased by approximately **7.7%** to **S$2.4 million**, mainly due to reduced salaries and other operating costs Administrative and Other Operating Expenses Change | Metric | 2025 (S$ million) | 2024 (S$ million) | Change (S$ million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Administrative and Other Operating Expenses | 2.4 | 2.6 | (0.2) | -7.7% | - The decrease in administrative and other operating expenses was due to reduced salaries and other operating costs[48](index=48&type=chunk) [Finance Costs](index=25&type=section&id=Finance%20Costs) For the six months ended 30 June 2025, the Group's finance costs increased by approximately **20.0%** to **S$240 thousand**, primarily due to increased interest expenses on bank borrowings Finance Costs Change | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 240 | 200 | 40 | 20.0% | - The increase in finance costs was mainly due to increased interest expenses related to bank borrowings[49](index=49&type=chunk) [Profit/(Loss) and Total Comprehensive Income for the Period](index=25&type=section&id=Profit%2F(Loss)%20and%20Total%20Comprehensive%20Income%20for%20the%20Period) For the six months ended 30 June 2025, the Group recorded a profit of approximately **S$105 thousand**, a turnaround from a **S$374 thousand loss** in 2024, primarily due to reduced selling and distribution costs Profit/(Loss) for the Period Change | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period | 105 | (374) | 479 | - The turnaround to profit was primarily due to a **S$0.4 million** reduction in selling and distribution costs[50](index=50&type=chunk) [Capital Structure](index=26&type=section&id=Capital%20Structure) Details of the Company's share capital are provided in Note 16 to the interim report, with the capital structure remaining stable as at 30 June 2025 - Details of the Company's share capital are set out in Note 16 to the condensed consolidated financial statements in this interim report[51](index=51&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) As at 30 June 2025, the Group's working capital primarily came from internal resources, placing activities, and bank borrowings, with the quick ratio increasing to approximately **2.36 times**, indicating good liquidity - Working capital sources include internal resources, placing activities, and bank and other borrowings[52](index=52&type=chunk) Quick Ratio | Metric | 30 June 2025 | 31 December 2024 | Change | | :--- | :--- | :--- | :--- | | Quick Ratio | 2.36 times | 2.13 times | 0.23 times | [Gearing Ratio](index=26&type=section&id=Gearing%20Ratio) As at 30 June 2025, the Group's total borrowings were approximately **S$7.1 million**, with a gearing ratio of approximately **30.7%**, a slight decrease from 31 December 2024, indicating stable financial leverage Total Borrowings and Gearing Ratio | Metric | 30 June 2025 (S$ million) | 31 December 2024 (S$ million) | Change (S$ million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Borrowings | 7.1 | 7.4 | (0.3) | -4.05% | | Gearing Ratio | 30.7% | 31.5% | -0.8% | -2.54% | - The gearing ratio is calculated by dividing the Group's total borrowings by the Group's total equity[53](index=53&type=chunk) [Capital Expenditure](index=26&type=section&id=Capital%20Expenditure) For the six months ended 30 June 2025, the Group had no major capital expenditure related to the acquisition of property, plant and equipment - For the six months ended 30 June 2025, the Group had no major capital expenditure related to the acquisition of property, plant and equipment[54](index=54&type=chunk) [Capital Commitments](index=26&type=section&id=Capital%20Commitments) As at 30 June 2025, the Group had no significant capital commitments, consistent with the situation as at 31 December 2024 - As at 30 June 2025, the Group had no significant capital commitments[55](index=55&type=chunk) [Pledge of the Group's Assets](index=26&type=section&id=Pledge%20of%20the%20Group's%20Assets) As at 30 June 2025, the Group had pledged bank deposits, land and buildings, and investment properties to secure certain bank financing, with the net carrying amount of pledged assets remaining stable Carrying Amount of Pledged Assets (S$ thousand) | Pledged Asset | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Bank Deposits | 1,500 | 1,500 | | Land and Buildings | 6,900 | 7,100 | | Investment Properties | 600 | 600 | [Material Investments, Major Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=27&type=section&id=Material%20Investments,%20Major%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) For the six months ended 30 June 2025, the Group had no material investments, major acquisitions, or disposals of subsidiaries, associates, and joint ventures, other than those disclosed in the interim report - For the six months ended 30 June 2025, the Group had no material investments, major acquisitions, or disposals of subsidiaries, associates, and joint ventures[57](index=57&type=chunk) [Future Plans for Material Investments and Capital Assets](index=27&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As at 30 June 2025, the Group had no other future plans regarding material investments and capital assets - As at 30 June 2025, the Group had no other plans regarding material investments and capital assets[58](index=58&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) As at 30 June 2025, the Group had contingent liabilities of **S$948 thousand** for performance bonds issued to suppliers, secured by properties within leasehold land, investment properties, and corporate guarantees Contingent Liabilities | Item | 30 June 2025 (S$ thousand) | 31 December 2024 (S$ thousand) | Change (S$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Performance Bonds Issued | 948 | 946 | 2 | 0.21% | - The performance bonds are secured by properties within leasehold land and investment properties, as well as corporate guarantees[59](index=59&type=chunk) [Information on Employees and Remuneration Policies](index=27&type=section&id=Information%20on%20Employees%20and%20Remuneration%20Policies) As at 30 June 2025, the Group had **66 employees**, with total staff costs of approximately **S$1.7 million**, attracting and retaining talent through a share option scheme and training courses Employee Information and Costs | Metric | 30 June 2025 | 31 December 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Number of Employees | 66 persons | 64 persons | 2 persons | 3.13% | | Total Staff Costs (for the six months ended 30 June) | S$1.7 million | S$2.0 million | (S$0.3) million | -15.00% | - Remuneration packages are generally determined with reference to market terms and individual performance[60](index=60&type=chunk) - The Group has adopted a share option scheme and provides various training courses to enhance employee skills[60](index=60&type=chunk) [Use of Proceeds](index=28&type=section&id=Use%20of%20Proceeds) As at 30 June 2025, net proceeds from the rights issue were partially utilized, with funds for promissory note repayment, IT system upgrades, promotion and marketing, and working capital fully used, while balances for mergers and acquisitions, and property, plant and equipment acquisition/replacement remained unutilized Use of Rights Issue Proceeds (as at 30 June 2025) | Purpose | Intended Use (HK$ thousand) | Actual Use (HK$ thousand) | Unutilized Amount (HK$ thousand) | | :--- | :--- | :--- | :--- | | Repayment of Promissory Notes | 18,000 | 18,000 | – | | Mergers and Acquisitions | 30,000 | – | 30,000 | | Acquisition and Replacement of Property, Plant and Equipment | 6,000 | 1,144 | 4,856 | | Upgrade of IT Systems | 2,000 | 2,000 | – | | Promotion and Marketing Expenses | 3,000 | 3,000 | – | | Working Capital | 38,900 | 38,900 | – | | **Total** | **97,900** | **63,044** | **34,856** | - The Group expects the unutilized net proceeds to be used before 2025[61](index=61&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section provides important information on corporate governance and equity structure, including directors' and chief executives' interests, major shareholders' disclosures, listed securities transactions, share option and award schemes, potential competition, corporate governance code compliance, and audit committee review [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=29&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As at 30 June 2025, several directors and key executives held long positions in the Company's shares, with Mr. Kwok Kwai Sin and his associated company collectively holding **21.71%** of the total issued share capital Directors' and Chief Executive's Interests in Shares (Long Position) as at 30 June 2025 | Name | Capacity/Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Chan Siu Yee | Beneficial Owner/Personal Interest | 11,760,000 | 2.95% | | Mr. Ng Chiu Cheung | Beneficial Owner/Personal Interest/Spouse's Interest | 13,107,000 | 3.29% | | Ms. Yeung Po Chu | Spouse's Interest | 13,107,000 | 3.29% | | Zumegnsi Technology Group Limited | Beneficial Owner | 59,670,000 | 14.97% | | Mr. Kwok Kwai Sin | Beneficial Owner | 26,865,000 | 6.74% | - Mr. Kwok Kwai Sin and Zumegnsi Technology Group Limited, in which he holds a **70%** interest, are deemed to be interested in a total of **86,535,000 shares**, representing **21.71%** of the Company's total issued share capital[65](index=65&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=30&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As at 30 June 2025, Metaverse (International) Securities Limited, as the scheme trustee, held **36,445,000 shares** of the Company, representing **9.14%** of the issued share capital Substantial Shareholders' and Other Persons' Interests in Shares (Long Position) as at 30 June 2025 | Name | Capacity/Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Metaverse (International) Securities Limited | Trustee of the Scheme/Other | 36,445,000 | 9.14% | - These shares are held by Ma Yau Shing Investment Limited, which is the trustee of the scheme adopted by the Company on 14 September 2021[64](index=64&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended 30 June 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended 30 June 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[66](index=66&type=chunk) [Share Option Scheme](index=31&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on 30 August 2017 to attract, retain, and reward eligible individuals; no options were granted, exercised, cancelled, or lapsed during the six months ended 30 June 2025 - The share option scheme was adopted on 30 August 2017 to attract, retain, and reward eligible individuals[67](index=67&type=chunk) - For the six months ended 30 June 2025, no share options were granted, exercised, cancelled, or lapsed[68](index=68&type=chunk) [Share Award Scheme](index=31&type=section&id=Share%20Award%20Scheme) The Company adopted a share award scheme on 14 September 2021 to reward eligible participants contributing to the Group's growth and development; as at 30 June 2025, the trustee had purchased **36,445,000 shares**, but no award shares had been granted - The share award scheme was adopted on 14 September 2021 to recognize and reward eligible participants who have contributed to the Group's growth and development[69](index=69&type=chunk) - As at 30 June 2025, the trustee had utilized approximately **HK$17.989 million** to purchase **36,445,000 shares**, representing **9.14%** of the issued shares[70](index=70&type=chunk) - As at 30 June 2025, no award shares had been granted under the scheme[70](index=70&type=chunk) [Competition and Conflicts of Interest](index=32&type=section&id=Competition%20and%20Conflicts%20of%20Interest) For the six months ended 30 June 2025, no directors, major shareholders, or their close associates engaged in any business competing or potentially competing with the Group's business, nor were there any other conflicts of interest - For the six months ended 30 June 2025, no directors, substantial shareholders of the Company, or any of their respective close associates engaged in any business that competes or may compete with the Group's business, nor did they have any other conflicts of interest with the Group[72](index=72&type=chunk) [Compliance with Corporate Governance Code](index=33&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) For the six months ended 30 June 2025, the Company complied with the code provisions of Appendix 15 to the GEM Listing Rules, 'Corporate Governance Code' - For the six months ended 30 June 2025, the Company complied with the code provisions of the Corporate Governance Code[73](index=73&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=Directors'%20Securities%20Transactions) For the six months ended 30 June 2025, all directors fully complied with the required standards for securities transactions under the GEM Listing Rules, with no non-compliance incidents - All directors confirmed that for the six months ended 30 June 2025, they fully complied with the required dealing standards and that no non-compliance incidents occurred[74](index=74&type=chunk) [Audit Committee](index=33&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, discussed and reviewed this interim report and the unaudited condensed consolidated financial statements, deeming them prepared in compliance with applicable accounting standards, GEM Listing Rules, and other legal requirements, with sufficient disclosure - The Audit Committee members include three independent non-executive directors: Ms. Chan Wai Nga (Chairperson), Ms. Chan Oi Chong, and Ms. Luk Suen Ling[75](index=75&type=chunk) - The Audit Committee discussed and reviewed this interim report and the unaudited condensed consolidated financial statements, concluding that they were prepared in compliance with applicable accounting standards, the GEM Listing Rules, and other applicable legal requirements, and that sufficient disclosures have been made[75](index=75&type=chunk) [Board of Directors](index=33&type=section&id=Board%20of%20Directors) As at the report date, the Board of Directors comprised four executive directors and three independent non-executive directors - As at the date of this report, the executive directors are Mr. Chan Siu Yee, Mr. Kwok Kwai Sin, Mr. Ng Chiu Cheung, and Mr. Tse Yan Yan; the independent non-executive directors are Ms. Chan Oi Chong, Ms. Luk Suen Ling, and Ms. Chan Wai Nga[75](index=75&type=chunk)