半年度報告 [ 股份代號：00525 ] 廣 深 鐵 路 2025 年 半 年 度 報 告 重要提示 ✓適用 □不適用 本半年度報告中如有涉及未來計劃、發展戰略等前瞻性描述，均不構成公司對投資者的實質承諾，投資者及 相關人士均應當對此保持足夠的風險認識，並且應當理解計劃、預測與承諾之間的差異。 七、 是否存在被控股股東及其他關聯方非經營性佔用資金情況 否 八、 是否存在違反規定決策程序對外提供擔保的情況 否 九、 是否存在半數以上董事無法保證公司所披露半年度報告的真實性、準確性和完整性 否 十、 重大風險提示 公司已在本半年度報告中詳細描述未來可能面對的風險，請查閱「董事會報告（含管理層討論與分析）」章節 中「可能面對的風險」部分的相關內容。 001 一、 本公司董事會（「董事會」）、監事會及董事、監事、高級管理人員保證本半年度報告內容的真實性、準確性、 完整性，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 二、 公司全體董事出席審議本半年度報告的董事會會議。 三、 本半年度報告中的財務報告按照中國企業會計準則編製，並且未經審計。 四、 公司董事長蔣輝、總經理陳少宏、總會計師羅新鵬及財務 ...

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。 First Service Holding Limited 第一服务控股有限公司 第 一 服 务 控 股 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至2025年6月30日止六個月之未 經 審 核 綜 合 業 績，連 同 截 至2024年6月30日 止 六 個 月 的 比 較 數 字。 於 本 公 告 內，「我 們」及「第 一 服 务 控 股」指 本 公 司，如 文 義 另 有 所 指，則 指 本 集 團。 綜合損益及其他全面收益表 截 至2025年6月30日止六個月 — 未經審核 （以 人 民 幣（「人民幣」）列 示） （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：2107） 截 至2025年6月30日止六個月 ...

Financial Performance - The group recorded revenue of RMB 228.0 million for the six months ended June 30, 2025, representing a 12.3% increase compared to RMB 203.1 million in the same period of 2024[3]. - Gross profit for the same period was RMB 47.8 million, a decrease of 23.4% from RMB 62.4 million in 2024, resulting in a gross margin of 21.0%, down 9.7 percentage points year-on-year[3]. - The group's net profit after tax was RMB 19.8 million, down 16.1% from approximately RMB 23.6 million in the previous year[3]. - Profit before tax for the six months ended June 30, 2025, was RMB 21,612 thousand, compared to RMB 27,480 thousand in 2024, reflecting a decrease of 21.4%[23]. - The company's profit attributable to owners for the six months ended June 30, 2025, was RMB 16,699,000, compared to RMB 21,410,000 for the same period in 2024, reflecting a decrease of approximately 22.5%[27]. - Net profit after tax for the first half of 2025 was RMB 19.8 million, a decline of 16.1% from RMB 23.6 million in 2024, primarily due to increased provisions for receivables[43]. - The pre-tax profit decreased by 21.5% to RMB 21.6 million from RMB 27.5 million in the same period of 2024[59]. - Net profit for the period was RMB 19.8 million, a decrease of 16.1% from RMB 23.6 million in the same period of 2024, with a net profit margin of 8.7%[61]. Revenue Breakdown - Total revenue for the six months ended June 30, 2025, was RMB 228,032 thousand, representing an increase of 12.3% from RMB 203,117 thousand for the same period in 2024[18]. - Property services segment revenue increased to RMB 140,114 thousand, up 11.6% from RMB 124,745 thousand in 2024[18]. - Asset operation services segment revenue rose to RMB 80,148 thousand, a 19.8% increase from RMB 66,914 thousand in 2024[18]. - Investment and development segment revenue decreased to RMB 7,770 thousand, down 32.5% from RMB 11,458 thousand in 2024[18]. - Property services revenue amounted to RMB 140.1 million, accounting for 61.4% of total revenue, with a 12.3% increase from RMB 124.7 million in 2024[45]. - Asset operation services revenue was RMB 80.1 million, making up 35.2% of total revenue, reflecting a 19.8% growth from RMB 66.9 million in 2024[45]. - Investment and development revenue decreased by 32.2% to RMB 7.8 million, down from RMB 11.5 million in 2024, representing 3.4% of total revenue[45]. Expenses and Costs - Administrative expenses decreased to RMB 20.4 million from RMB 30.4 million in 2024, indicating improved cost management[4]. - Total costs incurred for services provided amounted to RMB 177,315 thousand, an increase from RMB 139,437 thousand in 2024[23]. - Sales costs increased to RMB 180.2 million, up 28.1% from RMB 140.7 million in the same period of 2024[51]. - Other income decreased by 19.0% to RMB 5.1 million from RMB 6.3 million in the same period of 2024, primarily due to a reduction in foreign exchange gains[53]. - Administrative expenses decreased by 32.9% to RMB 20.4 million from RMB 30.4 million in the same period of 2024, attributed to digital empowerment and refined management[54]. Assets and Liabilities - Cash and cash equivalents increased to RMB 212.2 million as of June 30, 2025, compared to RMB 169.1 million at the end of 2024, indicating improved liquidity[5]. - Total current assets rose to RMB 513.5 million from RMB 440.0 million, while total current liabilities increased to RMB 352.4 million from RMB 296.4 million, resulting in a net current asset value of RMB 161.1 million[5]. - Non-current assets totaled RMB 392.9 million, slightly down from RMB 394.8 million at the end of 2024, indicating stability in asset management[5]. - The company’s bank borrowings totaled RMB 83.5 million as of June 30, 2025, significantly up from RMB 9.0 million at the end of 2024[36]. - The effective interest rate on bank borrowings ranged from 3% to 4%[36]. - The company’s total trade payables as of June 30, 2025, were RMB 43,821,000, down from RMB 55,532,000 as of December 31, 2024, representing a decrease of about 21.1%[33]. - The company’s non-current liabilities from other borrowings from related parties decreased to RMB 14,982,000 as of June 30, 2025, from RMB 30,922,000 as of December 31, 2024, indicating a reduction of approximately 51.5%[34]. - Trade receivables increased to RMB 235,596,000 as of June 30, 2025, from RMB 203,292,000 as of December 31, 2024, marking an increase of about 15.9%[29]. Corporate Governance and Management - The board believes that high standards of corporate governance are essential for protecting shareholder interests and enhancing corporate value[87]. - The company has complied with the corporate governance code principles throughout the reporting period, with a noted deviation regarding the roles of the chairman and CEO[88]. - The audit committee consists of three independent non-executive directors, ensuring compliance with accounting principles and internal controls[92]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[91]. - The company has no major customer transactions exceeding 10% of total revenue for the periods ended June 30, 2025, and 2024[17]. Future Plans and Strategies - The group will focus on three product lines: integrated manufacturing complexes, digital economy parks, and residential communities to enhance urban asset service value radius[84]. - The group plans to increase investment in AI and digitalization to build an "algorithm-driven" management hub, improving operational efficiency and decision-making capabilities[84]. - The group aims to iterate its user operation system, creating a closed loop of "online community + offline scenarios + value-added services" to convert user traffic into operational assets[84]. - The company has not made any significant investments or plans for major capital assets during the reporting period[76]. - The company has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[75].

[Interim Results](index=2&type=section&id=Interim%20Results) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This chapter presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, reflecting the company's financial performance and position [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Profit or Loss and Other Comprehensive Income Overview (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 134,461 | 114,916 | | Cost of revenue | (125,638) | (106,570) | | Gross profit | 8,823 | 8,346 | | Other income | 1,425 | 2,911 | | Administrative expenses | (9,833) | (9,686) | | Profit before income tax | 415 | 1,571 | | Income tax expense | – | (259) | | Profit and total comprehensive income for the period | 415 | 1,312 | | Basic earnings per share (HK cents) | 0.03 | 0.09 | [Unaudited Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Financial Position Overview (As at June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 11,333 | 12,568 | | Current assets | 279,040 | 346,510 | | **Liabilities** | | | | Current liabilities | 154,392 | 207,931 | | Non-current liabilities | 974 | 974 | | **Equity** | | | | Total equity | 135,007 | 150,173 | - Net current assets as at June 30, 2025, were **HK$124,648 thousand**, a decrease from **HK$138,579 thousand** as at December 31, 2024[4](index=4&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity Movement Overview (For the six months ended June 30) | Item | Share Capital (HK$'000) | Share Premium (HK$'000) | Retained Earnings (HK$'000) | Total (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 14,646 | 43,436 | 91,481 | 150,173 | | Profit and total comprehensive income for the period | – | – | 415 | 415 | | Shares repurchased and cancelled | (141) | (935) | – | (1,076) | | Dividends recognised as distribution | – | – | (14,505) | (14,505) | | As at June 30, 2025 | 14,505 | 42,501 | 77,391 | 135,007 | - Share capital decreased by **HK$141 thousand** due to shares repurchased and cancelled during the period, resulting in a total equity reduction of **HK$1,076 thousand**[5](index=5&type=chunk) - Dividends recognised as distribution amounted to **HK$14,505 thousand**[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Cash Flow Overview (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash generated from operating activities | 18,502 | 14,507 | | Net cash generated from investing activities | 687 | 877 | | Net cash (used in) / generated from financing activities | (15,582) | 19,152 | | Net increase in cash and cash equivalents | 3,607 | 34,536 | | Cash and cash equivalents at end of period | 62,328 | 80,292 | - Net cash generated from operating activities increased by **27.5%** year-on-year, from **HK$14,507 thousand** in 2024 to **HK$18,502 thousand** in 2025[7](index=7&type=chunk) - Financing activities shifted from a net cash inflow of **HK$19,152 thousand** in the prior period to a net cash outflow of **HK$15,582 thousand** in the current period[7](index=7&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This chapter details the basis of preparation, accounting policies, segment revenue, key expenses, taxes, dividends, EPS, and related party transactions [1. General Information](index=6&type=section&id=1.%20General%20Information) - The company was incorporated in the Cayman Islands as an exempted company on April 29, 2015, with shares listed on the Hong Kong Stock Exchange[8](index=8&type=chunk) - The company is an investment holding company, with subsidiaries primarily providing various building services engineering systems, maintenance, and repair services[8](index=8&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and applicable disclosure requirements of the Listing Rules[10](index=10&type=chunk) - New and revised HKFRSs adopted during the period, such as HKAS 21 (Amendment) 'Lack of Exchangeability', had no significant impact on the Group's operating results or financial position[11](index=11&type=chunk) [3. Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) - The Group's revenue primarily derives from building services engineering and maintenance, repair, and other services[12](index=12&type=chunk) Revenue by Business Segment (For the six months ended June 30) | Business Segment | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Building services engineering | 129,211 | 108,920 | | Maintenance, repair and other services | 5,250 | 5,996 | | **Total** | **134,461** | **114,916** | Segment Results by Business Segment (For the six months ended June 30) | Business Segment | 2025 Segment Results (HK$'000) | 2024 Segment Results (HK$'000) | | :--- | :--- | :--- | | Building services engineering | 7,597 | 7,577 | | Maintenance, repair and other services | 1,226 | 769 | | **Total** | **8,823** | **8,346** | [4. Profit Before Income Tax](index=9&type=section&id=4.%20Profit%20Before%20Income%20Tax) Key Expense and Income Items (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Directors' remuneration | 2,973 | 6,519 | | Total staff costs | 24,858 | 30,579 | | Auditor's remuneration | 523 | 498 | | Depreciation of property, plant and equipment | 1,415 | 1,271 | | Impairment loss on trade receivables reversed | (375) | (469) | | Bank interest income | (1,047) | (831) | - Directors' remuneration significantly decreased from **HK$6,519 thousand** in 2024 to **HK$2,973 thousand** in 2025[16](index=16&type=chunk) - Total staff costs decreased by **18.6%** year-on-year, from **HK$30,579 thousand** to **HK$24,858 thousand**[16](index=16&type=chunk) [5. Income Tax Expense](index=10&type=section&id=5.%20Income%20Tax%20Expense) - No Hong Kong profits tax provision was made for the six months ended June 30, 2025, as Hong Kong subsidiaries had no assessable profits[18](index=18&type=chunk) - The Hong Kong profits tax rate is **16.5%**[18](index=18&type=chunk) [6. Dividends](index=10&type=section&id=6.%20Dividends) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (nil for the same period in 2024)[19](index=19&type=chunk) - A final dividend of **HK$14,505,000** (HK$0.01 per share) was paid for the year ended December 31, 2024[19](index=19&type=chunk) [7. Earnings Per Share](index=10&type=section&id=7.%20Earnings%20Per%20Share) Basic Earnings Per Share Calculation (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the purpose of basic earnings per share (HK$'000) | 415 | 1,312 | | Weighted average number of ordinary shares for basic earnings per share (thousand shares) | 1,460,468 | 1,511,810 | | Basic earnings per share (HK cents) | 0.03 | 0.09 | - The Group had no potential dilutive ordinary shares outstanding during the reporting period[21](index=21&type=chunk) [8. Movements in Property, Plant and Equipment](index=11&type=section&id=8.%20Movements%20in%20Property,%20Plant%20and%20Equipment) - Additions to property, plant and equipment amounted to **HK$748,000** during the relevant period (nil for the same period last year)[22](index=22&type=chunk) [9. Movements in Intangible Assets](index=11&type=section&id=9.%20Movements%20in%20Intangible%20Assets) - Amortisation of intangible assets was approximately **HK$30,000** during the relevant period, consistent with the prior period[23](index=23&type=chunk) [10. Trade and Other Receivables](index=11&type=section&id=10.%20Trade%20and%20Other%20Receivables) Trade and Other Receivables (As at June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables, net | 45,681 | 82,931 | | Deposits paid | 62,985 | 63,794 | | Other receivables and prepayments | 550 | 5,917 | | **Total** | **109,216** | **152,642** | - Net trade receivables significantly decreased from **HK$82,931 thousand** as at December 31, 2024, to **HK$45,681 thousand** as at June 30, 2025[24](index=24&type=chunk) Ageing Analysis of Trade Receivables (As at June 30) | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 9,255 | 42,162 | | 31 to 60 days | 19,311 | 28,402 | | 61 to 90 days | 3,538 | 7,435 | | Over 90 days | 13,577 | 4,932 | [11. Trade and Other Payables](index=12&type=section&id=11.%20Trade%20and%20Other%20Payables) Trade and Other Payables (As at June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 57,900 | 71,874 | | Retention payables | 12,564 | 11,752 | | Accrued subcontracting and material costs | 74,214 | 104,415 | | Accrued staff costs, other payables and accruals | 9,090 | 16,728 | | **Total** | **153,768** | **204,769** | - Total trade and other payables decreased from **HK$204,769 thousand** as at December 31, 2024, to **HK$153,768 thousand** as at June 30, 2025[26](index=26&type=chunk) Ageing Analysis of Trade Payables (As at June 30) | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 15,469 | 46,814 | | 31 to 60 days | 13,251 | 5,798 | | 61 to 90 days | 4,783 | 485 | | Over 90 days | 24,397 | 18,777 | [12. Share Capital](index=13&type=section&id=12.%20Share%20Capital) - As at June 30, 2025, the number of issued shares was **1,450,490,000**, a decrease from **1,464,600,000** shares as at December 31, 2024[28](index=28&type=chunk) - The decrease in share capital was primarily due to the repurchase and cancellation of **14,110,000** shares[28](index=28&type=chunk) [13. Related Party Disclosures](index=14&type=section&id=13.%20Related%20Party%20Disclosures) Related Party Transactions (For the six months ended June 30) | Related Party | Nature of Transaction | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | :--- | | LKW Company Limited | Rent paid/payable | 265 | 265 | | Mr. Wong and Ms. So | Rent paid/payable | 548 | 548 | Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Salaries and other allowances | 2,712 | 6,258 | | Retirement benefit scheme contributions | 27 | 27 | | **Total** | **2,739** | **6,285** | - Key management personnel remuneration significantly decreased from **HK$6,285 thousand** in 2024 to **HK$2,739 thousand** in 2025[31](index=31&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This chapter provides management's perspective on the Group's business review, financial performance, liquidity, share capital, and corporate governance [Business Review and Outlook](index=15&type=section&id=Business%20Review%20and%20Outlook) - The Group's principal business is providing various building services engineering systems in Hong Kong, including mechanical ventilation, air-conditioning, electrical, plumbing, drainage, and fire services systems, along with maintenance and repair services[32](index=32&type=chunk) - The Group will continue its key business strategies, including undertaking larger projects, expanding service scope by applying for additional licenses, and strengthening the engineering department by recruiting qualified employees[33](index=33&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) - Revenue increased by approximately **17%** from **HK$114.9 million** in the same period of 2024 to approximately **HK$134.5 million** in 2025, primarily due to an increase in project contract amounts[34](index=34&type=chunk) - Cost of revenue increased by approximately **18%** year-on-year, consistent with revenue growth[35](index=35&type=chunk) - Gross profit increased by approximately **6.0%** year-on-year to **HK$8.8 million**, but the overall gross profit margin slightly decreased from **7.3%** to **6.6%**[36](index=36&type=chunk) - Administrative expenses slightly increased by **1%** to **HK$9.8 million**, mainly due to higher administrative staff salaries and other administrative expenses[37](index=37&type=chunk) - Profit and total comprehensive income for the period decreased from **HK$1.3 million** in the same period of 2024 to **HK$0.4 million** in 2025, primarily due to the net effect of decreased other income and increased administrative expenses[38](index=38&type=chunk) - The current ratio was approximately **1.8 times** as at June 30, 2025 (December 31, 2024: approximately **1.7 times**), indicating improved liquidity[40](index=40&type=chunk) - The gearing ratio was **zero** as at June 30, 2025 (December 31, 2024: zero), indicating no external borrowings[41](index=41&type=chunk) - The Group pledged approximately **HK$5.4 million** in bank deposits and approximately **HK$4.7 million** in leasehold land and buildings to banks as collateral for bank financing[43](index=43&type=chunk) - All of the Group's revenue-generating businesses are transacted in Hong Kong Dollars, facing no significant foreign exchange risk, and no hedging policy is in place[45](index=45&type=chunk) [Share Capital Structure](index=19&type=section&id=Share%20Capital%20Structure) - As at June 30, 2025, the company's issued share capital was **HK$14,504,900**, with **1,450,490,000** issued shares[46](index=46&type=chunk) - During the period, **14,110,000** ordinary shares were repurchased and cancelled[46](index=46&type=chunk) [Capital Commitments](index=19&type=section&id=Capital%20Commitments) - As at June 30, 2025, the Group had no material capital commitments[47](index=47&type=chunk) [Future Plans for Material Investments and Capital Assets](index=19&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) - The Group had no other material investment or capital asset plans as at June 30, 2025[48](index=48&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=19&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) - During the relevant period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[49](index=49&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) - As at June 30, 2025, the Group had no material contingent liabilities[50](index=50&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) - As at June 30, 2025, the Group employed **112** employees (December 31, 2024: **113** employees)[51](index=51&type=chunk) - Staff costs (including directors' remuneration) were approximately **HK$24.9 million**, a decrease from the same period last year[51](index=51&type=chunk) - Remuneration policy is based on employee qualifications, performance, and development potential, offering attractive benefits including retirement, medical, and training sponsorships[51](index=51&type=chunk) [Material Investments Held](index=20&type=section&id=Material%20Investments%20Held) - The Group held no material investments for the six months ended June 30, 2025[53](index=53&type=chunk) [Disclosure of Interests](index=21&type=section&id=Disclosure%20of%20Interests) [A. Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures](index=21&type=section&id=A.%20Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20or%20Debentures) Directors' Long Positions in Shares (As at June 30, 2025) | Name of Director | Capacity/Nature of Interest | Number of Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wong | Interest in controlled corporation | 653,000,000 | 45.02% | | Mr. Wong | Beneficial owner | 384,490,000 | 26.51% | | Mr. Wong | Spouse's interest | 8,000,000 | 0.55% | | Ms. So | Spouse's interest | 1,037,490,000 | 71.53% | | Ms. So | Beneficial owner | 8,000,000 | 0.55% | | Mr. Tang Shun Man | Beneficial owner | 160,000 | 0.01% | | Mr. Lau Kwok Lok | Beneficial owner | 300,000 | 0.02% | Directors' Long Positions in Ordinary Shares of Associated Corporations (As at June 30, 2025) | Name of Director | Name of Associated Corporation | Capacity/Nature of Interest | Number of Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Wong | Golden Luck | Beneficial owner | 99 | 99% | | Ms. So | Golden Luck | Beneficial owner | 1 | 1% | [B. Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares or Debentures](index=23&type=section&id=B.%20Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20or%20Debentures) Substantial Shareholders' Long Positions in Shares (As at June 30, 2025) | Name of Shareholder | Capacity/Nature of Interest | Number of Shares | Long/Short Position | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Golden Luck | Beneficial owner | 653,000,000 | Long Position | 45.02% | [Competing Interests](index=23&type=section&id=Competing%20Interests) - During the relevant period, no director or controlling shareholder had any business or interest that competed or might compete with the Group's business[59](index=59&type=chunk) [Directors' Material Interests in Contracts](index=24&type=section&id=Directors'%20Material%20Interests%20in%20Contracts) - During the relevant period, no director had any material interest in any contract of significance to the Group's business to which the company or any of its subsidiaries was a party[60](index=60&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) - The company repurchased a total of **14,110,000** ordinary shares for approximately **HK$1,058,250** during the relevant period, all of which were cancelled[61](index=61&type=chunk)[62](index=62&type=chunk) - The Board believes the share repurchases demonstrate the company's confidence in its business outlook and prospects, creating value for shareholders[62](index=62&type=chunk) [Corporate Governance Code](index=25&type=section&id=Corporate%20Governance%20Code) - The company has complied with the applicable provisions of the Corporate Governance Code, except for Code Provision C.2.1 (roles of chairman and chief executive should be separate)[63](index=63&type=chunk) - Mr. Wong serves as both Chairman and Chief Executive Officer; the Board believes this structure enhances strategy formulation and implementation efficiency and will review the need for a separate CEO when necessary[63](index=63&type=chunk) [Code for Securities Transactions by Directors](index=25&type=section&id=Code%20for%20Securities%20Transactions%20by%20Directors) - The Group has adopted a code for securities transactions by directors, and all directors confirmed compliance throughout the relevant period[64](index=64&type=chunk) [Dividends](index=26&type=section&id=Dividends) - The Board resolved not to declare any interim dividend for the relevant period[65](index=65&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) - The company adopted a share option scheme on September 10, 2015; as of the report date, no share options have been granted, exercised, cancelled, or lapsed[66](index=66&type=chunk) - Under the mandate, **128,000,000** share options can be granted under the scheme, exercisable for **128,000,000** shares[66](index=66&type=chunk) [Events After the Reporting Period](index=26&type=section&id=Events%20After%20the%20Reporting%20Period) - No material events requiring disclosure occurred after the end of the relevant period and up to the date of this report[67](index=67&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) - The Audit Committee comprises three independent non-executive directors, with Mr. Tam Chun Chung as Chairman[68](index=68&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the relevant period and found them prepared in compliance with applicable accounting standards and Listing Rules[68](index=68&type=chunk) [By Order of the Board](index=27&type=section&id=By%20Order%20of%20the%20Board) - This report was issued by Mr. Wong King Kwong, Chairman and Executive Director, on behalf of the Board on August 28, 2025[69](index=69&type=chunk) - Executive Directors include Mr. Wong King Kwong, Ms. So Nui Ho, and Mr. Tang Shun Man; Independent Non-executive Directors include Mr. Chung Yuk Ming, Mr. Lau Kwok Lok, and Mr. Tam Chun Chung[69](index=69&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份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Guangzhou Rural Commercial Bank Co., Ltd.* 廣州農村商業銀行股份有限公司 * （於中華人民共和國註冊成立的股份有限公司） （股份代號：1551） 截至2025年6月30日止六個月中期 業績公告 廣州農村商業銀行股份有限公司*（「本行」）董事會（「董事會」）宣佈本行及其附 屬公司（「本集團」）截至2025年6月30日止六個月之未經審計的合併中期業績（「中 期業績」）。本業績公告所載列本集團截至2025年6月30日止六個月之中期業績， 其內容是根據適用的香港聯合交易所有限公司（「香港聯交所」）證券上市規則披露 要求及按照國際財務報告準則編製。 董事會及董事會審計委員會已審閱此中期業績。除另有指明外，本公告所載財務 數據為本集團合併口徑，且均以人民幣呈列。本業績公告登載於香港聯交所網站 ( www.hkexnews.hk )及本行網站( www.grcbank.com ...

[Interim Results Announcement Overview](index=1&type=section&id=Interim%20Results%20Announcement%20Overview) [Company Information and Announcement](index=1&type=section&id=Company%20Information%20and%20Announcement) Lap Kei Engineering (Holdings) Limited (Stock Code: 1690) announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, reviewed by the audit committee - Company Name: Lap Kei Engineering (Holdings) Limited[2](index=2&type=chunk) - Stock Code: **1690**[2](index=2&type=chunk) - Announcement Content: Unaudited condensed consolidated interim results for the six months ended June 30, 2025[3](index=3&type=chunk)[4](index=4&type=chunk) - Review Status: Interim results were not reviewed or audited by independent auditors, but were reviewed by the Board's audit committee[4](index=4&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue increased by **17%** to **HK$134.5 million**, but profit for the period significantly decreased by **68.4%** to **HK$0.4 million** due to lower other income and higher administrative expenses, with basic EPS falling to **0.03 HK cents** Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 134,461 | 114,916 | +17.0% | | Cost of Revenue | (125,638) | (106,570) | +17.9% | | Gross Profit | 8,823 | 8,346 | +5.7% | | Other Income | 1,425 | 2,911 | -51.0% | | Administrative Expenses | (9,833) | (9,686) | +1.5% | | Profit Before Income Tax | 415 | 1,571 | -73.6% | | Income Tax Expense | – | (259) | -100.0% | | Total Profit and Comprehensive Income for the Period | 415 | 1,312 | -68.4% | | Basic EPS (HK cents) | 0.03 | 0.09 | -66.7% | - Revenue growth primarily due to increased project contract amounts undertaken during the period[37](index=37&type=chunk) - Profit for the period decreased mainly due to the net effect of increased gross profit, decreased other income, and increased administrative expenses[41](index=41&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and liabilities decreased, with net current assets and total equity also reducing, while the current ratio slightly improved from 1.7 times to 1.8 times Key Data from Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Non-current Assets | 11,333 | 12,568 | (1,235) | | Current Assets | 279,040 | 346,510 | (67,470) | | Current Liabilities | 154,392 | 207,931 | (53,539) | | Net Current Assets | 124,648 | 138,579 | (13,931) | | Total Assets Less Current Liabilities | 135,981 | 151,147 | (15,166) | | Non-current Liabilities | 974 | 974 | 0 | | Net Assets/Total Equity | 135,007 | 150,173 | (15,166) | | Bank Balances | 62,328 | 58,721 | +3,607 | - Trade and other receivables decreased from **HK$152,642 thousand** to **HK$109,216 thousand**, and contract assets decreased from **HK$129,863 thousand** to **HK$102,132 thousand**[7](index=7&type=chunk) - Trade and other payables decreased from **HK$204,769 thousand** to **HK$153,768 thousand**[7](index=7&type=chunk) - Current ratio increased from approximately **1.7 times** as of December 31, 2024, to approximately **1.8 times** as of June 30, 2025[43](index=43&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity decreased from **HK$150.2 million** at the beginning of the period to **HK$135.0 million**, primarily due to dividend payments and share repurchases and cancellations Key Data from Condensed Consolidated Statement of Changes in Equity | Metric | As of June 30, 2025 (HK$ thousand) | As of June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total at Beginning of Period | 150,173 | 152,464 | | Total Profit and Comprehensive Income for the Period | 415 | 1,312 | | Shares Repurchased and Cancelled | (1,076) | (848) | | Dividends Recognized as Distribution | (14,505) | – | | Total at End of Period | 135,007 | 152,928 | - The company repurchased and cancelled shares worth **HK$1,076 thousand** during the period[8](index=8&type=chunk) - A final dividend of **HK$14,505 thousand** for the year ended December 31, 2024, was paid[8](index=8&type=chunk)[22](index=22&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities increased, but net cash outflow from financing activities led to a significant decrease in net increase in cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 18,502 | 14,507 | | Net Cash from Investing Activities | 687 | 877 | | Net Cash (Used in)/Generated from Financing Activities | (15,582) | 19,152 | | Net Increase in Cash and Cash Equivalents | 3,607 | 34,536 | | Cash and Cash Equivalents at Beginning of Period | 58,721 | 45,756 | | Cash and Cash Equivalents at End of Period | 62,328 | 80,292 | - Financing activities shifted from a net inflow in the prior period to a net outflow, primarily due to dividend payments and share repurchases[8](index=8&type=chunk)[10](index=10&type=chunk)[22](index=22&type=chunk)[64](index=64&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=6&type=section&id=1.%20General%20Information) The company, incorporated in the Cayman Islands and listed on the Stock Exchange, primarily provides engineering and maintenance services for building services engineering systems in Hong Kong, with Golden Luck Limited as its direct and ultimate holding company - The Company was incorporated in the Cayman Islands on April 29, 2015[11](index=11&type=chunk) - Its principal business is providing various engineering services, as well as maintenance and repair services for building services engineering systems[11](index=11&type=chunk) - Its direct and ultimate holding company is **Golden Luck Limited**[11](index=11&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) Interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, adopting the historical cost convention, and have been reviewed by the audit committee, with new and revised HKFRSs having no material impact on financial position - Interim financial statements are prepared in accordance with **HKAS 34** and the **Listing Rules**[13](index=13&type=chunk) - Interim financial statements are unaudited but have been reviewed by the Audit Committee[13](index=13&type=chunk) - The adoption of new and revised HKFRSs had no material impact on the Group's operating results or financial position[14](index=14&type=chunk) [3. Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from building services engineering and maintenance, repair and other services, with building services engineering revenue significantly increasing while maintenance, repair and other services revenue slightly decreased for the six months ended June 30, 2025 - Revenue refers to the consideration the Group expects to be entitled to in exchange for providing building services engineering and maintenance, repair and other services[15](index=15&type=chunk) Revenue by Business Segment | Business Segment | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Building Services Engineering | 129,211 | 108,920 | +18.6% | | Maintenance, Repair and Other Services | 5,250 | 5,996 | -12.5% | | **Total** | **134,461** | **114,916** | **+17.0%** | Results by Business Segment | Business Segment | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Building Services Engineering Segment Results | 7,597 | 7,577 | | Maintenance, Repair and Other Services Segment Results | 1,226 | 769 | | **Total Segment Results (Gross Profit)** | **8,823** | **8,346** | [4. Profit Before Income Tax](index=9&type=section&id=4.%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, profit before income tax was **HK$415 thousand**, a significant decrease from the prior period, primarily due to the impact of changes in directors' remuneration, staff costs, and other income Composition of Profit Before Income Tax | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Directors' Remuneration | 2,973 | 6,519 | | Other Staff Costs | 21,885 | 24,060 | | Total Staff Costs | 24,858 | 30,579 | | Auditor's Remuneration | 523 | 498 | | Depreciation of Property, Plant and Equipment | 1,415 | 1,271 | | Bank Interest Income | (1,047) | (831) | | Reversal of Impairment Loss on Trade Receivables | (375) | (469) | | Reversal of Impairment Loss on Contract Assets | (168) | (1,602) | - Directors' remuneration significantly decreased from **HK$6,519 thousand** to **HK$2,973 thousand**[19](index=19&type=chunk) - Total staff costs decreased from **HK$30,579 thousand** to **HK$24,858 thousand**[19](index=19&type=chunk) [5. Income Tax Expense](index=10&type=section&id=5.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the company had no income tax expense, compared to **HK$259 thousand** in the prior period, primarily because Hong Kong subsidiaries had no assessable profit or had estimated tax losses available for offset Income Tax Expense | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | – | 259 | - Hong Kong profits tax is calculated at **16.5%**, with no provision made for the current period[21](index=21&type=chunk) [6. Dividends](index=10&type=section&id=6.%20Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, while a final dividend of **HK$14,505 thousand** for FY2024 was paid during the period - No interim dividend was declared for the six months ended June 30, 2025[22](index=22&type=chunk) - A final dividend of **HK$14,505 thousand** (**HK$0.01** per share) was paid for the year ended December 31, 2024[22](index=22&type=chunk) [7. Earnings Per Share](index=10&type=section&id=7.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share was **0.03 HK cents**, a significant decrease from **0.09 HK cents** in the prior period, primarily due to lower profit for the period Basic Earnings Per Share Calculation | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit for Basic EPS Calculation (HK$ thousand) | 415 | 1,312 | | Weighted Average Ordinary Shares for Basic EPS Calculation (shares) | 1,460,468 | 1,511,810 | | **Basic EPS (HK cents)** | **0.03** | **0.09** | - The Group had no outstanding potential dilutive ordinary shares[24](index=24&type=chunk) [8. Movements in Property, Plant and Equipment](index=11&type=section&id=8.%20Movements%20in%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the company acquired **HK$748 thousand** in property, plant and equipment, with no additions in the prior period Additions to Property, Plant and Equipment | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Additions | 748 | 0 | [9. Movements in Intangible Assets](index=11&type=section&id=9.%20Movements%20in%20Intangible%20Assets) For the six months ended June 30, 2025, amortization of intangible assets was **HK$30 thousand**, consistent with the prior period Amortization of Intangible Assets | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Amortization | 30 | 30 | [10. Trade and Other Receivables](index=11&type=section&id=10.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were **HK$109,216 thousand**, a significant decrease from **HK$152,642 thousand** at the end of 2024, primarily due to a decrease in net trade receivables Trade and Other Receivables | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables, Net | 45,681 | 82,931 | | Deposits Paid | 62,985 | 63,794 | | Other Receivables and Prepayments | 550 | 5,917 | | **Total** | **109,216** | **152,642** | Trade Receivables Ageing Analysis (Net of Credit Loss Provision) | Ageing | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 9,255 | 42,162 | | 31 to 60 days | 19,311 | 28,402 | | 61 to 90 days | 3,538 | 7,435 | | Over 90 days | 13,577 | 4,932 | | **Total** | **45,681** | **82,931** | - The Group grants credit terms of **0 to 45 days** to customers for trade receivables[27](index=27&type=chunk) [11. Trade and Other Payables](index=12&type=section&id=11.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were **HK$153,768 thousand**, a decrease from **HK$204,769 thousand** at the end of 2024, primarily due to lower trade payables and accrued subcontracting and material costs Trade and Other Payables | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 57,900 | 71,874 | | Retention Payables | 12,564 | 11,752 | | Accrued Subcontracting and Material Costs | 74,214 | 104,415 | | Accrued Staff Costs, Other Payables and Accruals | 9,090 | 16,728 | | **Total** | **153,768** | **204,769** | Trade Payables Ageing Analysis | Ageing | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 15,469 | 46,814 | | 31 to 60 days | 13,251 | 5,798 | | 61 to 90 days | 4,783 | 485 | | Over 90 days | 24,397 | 18,777 | | **Total** | **57,900** | **71,874** | - Credit terms for trade payables range from **30 to 60 days**[29](index=29&type=chunk) [12. Share Capital](index=13&type=section&id=12.%20Share%20Capital) As of June 30, 2025, the company's issued share capital was **HK$14,505 thousand**, and the total number of shares in issue decreased due to the repurchase and cancellation of **14,110,000** ordinary shares Share Capital Movements | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Issued and Fully Paid Share Capital | 14,505 | 14,646 | | Number of Shares in Issue (shares) | 1,450,490,000 | 1,464,600,000 | | Less: Shares Repurchased and Cancelled (shares) | (14,110,000) | – | - The company repurchased and cancelled **14,110,000** ordinary shares during the period[31](index=31&type=chunk)[49](index=49&type=chunk) [13. Related Party Disclosures](index=14&type=section&id=13.%20Related%20Party%20Disclosures) The Group had rental transactions with related parties LKW Company Limited, Mr. Wong and Ms. So, and key management personnel remuneration decreased from the prior period Related Party Transactions | Related Party | Nature of Transaction | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | | LKW Company Limited | Rent Paid/Payable | 265 | 265 | | Mr. Wong and Ms. So | Rent Paid/Payable | 548 | 548 | Key Management Personnel Remuneration | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Salaries and Other Allowances | 2,712 | 6,258 | | Retirement Benefit Scheme Contributions | 27 | 27 | | **Total** | **2,739** | **6,285** | - **LKW Company Limited** is wholly owned by Mr. Wong and Ms. So[32](index=32&type=chunk) [Management Discussion and Analysis & Corporate Governance](index=15&type=section&id=Management%20Discussion%20and%20Analysis%20%26%20Corporate%20Governance) [Business Review and Outlook](index=15&type=section&id=Business%20Review%20and%20Outlook) The Group primarily provides building services engineering and maintenance, repair services in Hong Kong, and facing market challenges, the company plans to enhance competitiveness by undertaking more large-scale projects, expanding service scope, and strengthening its engineering department - The Group's principal business is providing various engineering services for building services engineering systems in Hong Kong[35](index=35&type=chunk) - Business is divided into building services engineering projects (including mechanical ventilation and air-conditioning systems, electrical systems, plumbing and drainage systems, fire services systems) and maintenance, repair and other services[35](index=35&type=chunk) - Key business strategies include: (i) undertaking more large-scale projects; (ii) expanding service scope; and (iii) strengthening the engineering department[36](index=36&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) Revenue increased by **17%** year-on-year this period, but gross profit margin slightly decreased, administrative expenses remained stable, and profit for the period significantly decreased due to lower other income and increased administrative expenses [Revenue](index=16&type=section&id=Revenue_FR) Revenue increased from **HK$114.9 million** in the prior period by **17%** to **HK$134.5 million** in the current period, primarily due to an increase in contract amounts for projects undertaken Revenue Comparison | Metric | For the six months ended June 30, 2025 (HK$ million) | For the six months ended June 30, 2024 (HK$ million) | Increase (%) | | :--- | :--- | :--- | :--- | | Revenue | 134.5 | 114.9 | 17.0% | - The increase in revenue was primarily due to the higher contract amounts of projects undertaken by the Group during the period compared to the prior period[37](index=37&type=chunk) [Cost of Revenue](index=16&type=section&id=Cost%20of%20Revenue_FR) Cost of revenue increased by **18%** year-on-year to **HK$125.6 million**, consistent with the revenue growth rate Cost of Revenue Comparison | Metric | For the six months ended June 30, 2025 (HK$ million) | For the six months ended June 30, 2024 (HK$ million) | Increase (%) | | :--- | :--- | :--- | :--- | | Cost of Revenue | 125.6 | 106.6 | 18.0% | - The increase in cost of revenue was proportionate to the increase in revenue during the period[38](index=38&type=chunk) [Gross Profit](index=16&type=section&id=Gross%20Profit_FR) Gross profit increased by **6.0%** year-on-year to **HK$8.8 million**, but overall gross profit margin slightly decreased from **7.3%** to **6.6%** Gross Profit and Gross Margin Comparison | Metric | For the six months ended June 30, 2025 (HK$ million) | For the six months ended June 30, 2024 (HK$ million) | Increase (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 8.8 | 8.3 | 6.0% | | Gross Margin | 6.6% | 7.3% | -0.7pp | - The increase in gross profit was due to the Group undertaking more projects compared to the prior period[39](index=39&type=chunk) [Administrative Expenses](index=16&type=section&id=Administrative%20Expenses_FR) Administrative expenses slightly increased by **1%** to **HK$9.8 million**, primarily due to increased administrative staff salaries and other administrative expenses Administrative Expenses Comparison | Metric | For the six months ended June 30, 2025 (HK$ million) | For the six months ended June 30, 2024 (HK$ million) | Increase (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 9.8 | 9.7 | 1.0% | - The slight increase in administrative expenses was due to higher administrative staff salaries and other administrative expenses during the period[40](index=40&type=chunk) [Total Profit and Comprehensive Income](index=17&type=section&id=Total%20Profit%20and%20Comprehensive%20Income_FR) Total profit and comprehensive income for the period significantly decreased by **68.4%** to **HK$0.4 million**, primarily due to the net effect of increased gross profit, decreased other income, and increased administrative expenses Total Profit and Comprehensive Income Comparison | Metric | For the six months ended June 30, 2025 (HK$ million) | For the six months ended June 30, 2024 (HK$ million) | Decrease (%) | | :--- | :--- | :--- | :--- | | Total Profit and Comprehensive Income for the Period | 0.4 | 1.3 | 68.4% | - The decrease in profit was primarily due to the net effect of increased gross profit, decreased other income, and increased administrative expenses[41](index=41&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total assets and liabilities both decreased, cash and bank balances slightly increased, the current ratio improved to **1.8 times**, the company obtained **HK$54.5 million** in performance bonds, and has **HK$79.2 million** in unutilized facilities Liquidity and Financial Resources Overview | Metric | As of June 30, 2025 (HK$ million) | As of December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Total Assets | 290.4 | 359.1 | | Total Liabilities | 155.4 | 208.9 | | Shareholders' Equity | 135.0 | 150.2 | | Cash and Bank Balances | 62.3 | 58.7 | | Current Ratio | 1.8 times | 1.7 times | | Debt-to-Equity Ratio | Zero | Zero | | Performance Bond Amount | 54.5 | 37.5 | | Unutilized Facilities | 79.2 | 46.2 | - Performance bonds are secured by leasehold land and buildings and pledged bank deposits[43](index=43&type=chunk) [Treasury Policy](index=18&type=section&id=Treasury%20Policy) The Group adopts a prudent financial management strategy, aiming to preserve asset value and maintain a robust liquidity position, continuously assessing customer creditworthiness to mitigate credit risk, and closely monitoring liquidity to meet funding needs - The Group adopts a prudent financial management strategy aimed at preserving asset value[45](index=45&type=chunk) - maintaining a **robust liquidity position** during the period[45](index=45&type=chunk) - continuously assessing customer creditworthiness and financial standing to mitigate credit risk[45](index=45&type=chunk) - The Board closely monitors the Group's liquidity position to ensure funding needs are met[45](index=45&type=chunk) [Pledge of Assets](index=18&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged approximately **HK$5.4 million** in bank deposits and **HK$4.7 million** in leasehold land and buildings as collateral for bank facilities, with unutilized facilities increasing to **HK$79.2 million** Pledge of Assets | Pledged Assets | As of June 30, 2025 (HK$ million) | As of December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Bank Deposits | 5.4 | 5.3 | | Leasehold Land and Buildings | 4.7 | 4.9 | | Unutilized Facilities | 79.2 | 46.2 | - Pledged assets serve as collateral for obtaining bank facilities[46](index=46&type=chunk) [Foreign Exchange Risk](index=18&type=section&id=Foreign%20Exchange%20Risk) All of the Group's businesses are transacted in HKD, not exposed to significant foreign exchange fluctuation risks, nor does it maintain a hedging policy or engage in foreign currency hedging - All of the Group's revenue-generating businesses are transacted in **HKD**[48](index=48&type=chunk) - During the period, there was **no significant foreign exchange fluctuation risk**[48](index=48&type=chunk) - The Group does not maintain a hedging policy nor does it engage in any hedging against foreign currency risks[48](index=48&type=chunk) [Share Capital Structure](index=19&type=section&id=Share%20Capital%20Structure) As of June 30, 2025, the company's issued share capital was **HK$14,504,900**, with **1,450,490,000 shares** in issue, and during the period, the company repurchased and cancelled **14,110,000** ordinary shares Share Capital Structure Overview | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Issued Share Capital (HK$) | 14,504,900 | 14,646,000 | | Number of Shares in Issue (shares) | 1,450,490,000 | 1,464,600,000 | | Par Value Per Share | HK$0.01 | HK$0.01 | - The Group repurchased a total of **14,110,000** of its own ordinary shares during the period, all of which were cancelled[49](index=49&type=chunk) [Capital Commitments](index=19&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no material capital commitments - The Group had no material capital commitments for property, plant and equipment or investment properties[50](index=50&type=chunk) [Future Plans for Material Investments and Capital Assets](index=19&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no other material investment or capital asset plans - The Group had no other material investment or capital asset plans as of June 30, 2025[51](index=51&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=19&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) During the relevant period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[52](index=52&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - The Group had no material contingent liabilities[53](index=53&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's total number of employees was **112**, with staff costs of **HK$24.9 million**; the company provides attractive benefits, including retirement and medical benefits, and regularly reviews remuneration based on performance Employees and Remuneration Overview | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total Employees | 112 | 113 | | Staff Costs (HK$ million) | 24.9 | 30.6 | - The Group promotes employees based on their qualifications, performance, and potential for development in their roles[54](index=54&type=chunk) - It provides attractive benefits, including retirement benefits, medical benefits, and sponsored training courses[54](index=54&type=chunk) - Contributions are made for employees under the Hong Kong Mandatory Provident Fund Schemes Ordinance[54](index=54&type=chunk) [Material Investments Held](index=20&type=section&id=Material%20Investments%20Held) The Group held no material investments for the six months ended June 30, 2025 - The Group held no material investments for the six months ended June 30, 2025[56](index=56&type=chunk) [Disclosure of Interests](index=21&type=section&id=Disclosure%20of%20Interests) This section discloses the interests and short positions of directors, chief executives, and major shareholders in the company's shares, with Mr. Wong, Ms. So, and their associates holding a majority of the company's shares [A. Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures](index=21&type=section&id=A.%20Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20or%20Debentures) As of June 30, 2025, Mr. Wong held a total of **72.1%** of the company's shares through interests in controlled corporations, beneficial ownership, and spouse's interests, while Ms. So held a total of **72.08%** of the shares through spouse's interests and beneficial ownership Directors' Long Positions in Shares | Director Name | Capacity/Nature of Interest | Number of Shares Held/Interested | Percentage Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wong | Interest in Controlled Corporation | 653,000,000 | 45.02% | | | Beneficial Owner | 384,490,000 | 26.51% | | | Interest of Spouse | 8,000,000 | 0.55% | | Ms. So | Interest of Spouse | 1,037,490,000 | 71.53% | | | Beneficial Owner | 8,000,000 | 0.55% | | Mr. Tang Shun Man | Beneficial Owner | 160,000 | 0.01% | | Mr. Lau Kwok Lok | Beneficial Owner | 300,000 | 0.02% | - Mr. Wong beneficially owns **99%** of the issued share capital of Golden Luck and is deemed to be interested in the shares held by Golden Luck[58](index=58&type=chunk) - Mr. Wong and Ms. So are spouses and are deemed under the Securities and Futures Ordinance to be interested in the shares held by each other[58](index=58&type=chunk) [B. Major Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares or Debentures](index=23&type=section&id=B.%20Major%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20or%20Debentures) As of June 30, 2025, Golden Luck, as a major shareholder, held **653,000,000 shares**, representing **45.02%** of the issued share capital Major Shareholders' Long Positions in Shares | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held/Interested | Long/Short Position | Percentage Shareholding | | :--- | :--- | :--- | :--- | :--- | | Golden Luck | Beneficial Owner | 653,000,000 | Long Position | 45.02% | [Competing Interests](index=23&type=section&id=Competing%20Interests) During the relevant period, no director, controlling shareholder, or their respective close associates had any business or interest that competes or may compete with the Group's business - No director, controlling shareholder, or their respective close associates had any business or interest that competes or may compete with the Group's business[62](index=62&type=chunk) [Directors' Material Interests in Contracts](index=24&type=section&id=Directors'%20Material%20Interests%20in%20Contracts) Save as disclosed in this report, no director had any material interest in any contract of significance to the Group's business to which the company or any of its subsidiaries was a party during the relevant period - During the period, no director had any material interest in any contract of significance to the Group's business to which the company or any of its subsidiaries was a party[63](index=63&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) The company repurchased a total of **14,110,000** ordinary shares on the Stock Exchange for a total consideration of approximately **HK$1,058,250** during the period, and all were cancelled, with the Board believing the share repurchase will create value for shareholders Details of Share Repurchases | Month of Repurchase | Number of Ordinary Shares Repurchased | Price Paid Per Share (highest/lowest HK$) | Total Consideration Paid (before transaction costs HK$) | | :--- | :--- | :--- | :--- | | March 2025 | 1,880,000 | 0.075 / 0.075 | 141,000 | | April 2025 | 12,230,000 | 0.075 / 0.075 | 917,250 | | **Total** | **14,110,000** | | **1,058,250** | - Repurchased shares were fully cancelled in **May 2025**, leading to a reduction in the total number of issued shares[64](index=64&type=chunk)[65](index=65&type=chunk) - The Board believes the share repurchase demonstrates the company's confidence in its business outlook and prospects, and creates value for shareholders[65](index=65&type=chunk) [Corporate Governance Code](index=25&type=section&id=Corporate%20Governance%20Code) The company complies with the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are combined by Mr. Wong, deviating from Code Provision C.2.1; the Board believes this structure enhances efficiency in strategy formulation and will review it when necessary - The company has complied with the applicable code provisions of the Corporate Governance Code, except for Code Provision C.2.1[66](index=66&type=chunk) - Mr. Wong has served as both Chairman and Chief Executive Officer, deviating from the requirement that these roles should be separate[66](index=66&type=chunk) - The Board believes this structure enhances efficiency in formulating and implementing company strategies, benefiting the Group and shareholders as a whole[66](index=66&type=chunk) [Code of Conduct Regarding Securities Transactions by Directors](index=25&type=section&id=Code%20of%20Conduct%20Regarding%20Securities%20Transactions%20by%20Directors) The Group has adopted a code of conduct for securities transactions by directors, no less exacting than the Model Code under the Listing Rules, and all directors confirmed compliance with the code during the period - The Group has adopted a code of conduct for securities transactions by directors, with terms no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[67](index=67&type=chunk) - All directors confirmed their compliance with the required standards set out in the code of conduct during the period[67](index=67&type=chunk) [Dividends](index=26&type=section&id=Dividends_CG) The Board resolved not to declare any interim dividend for the period - The Board resolved not to declare any interim dividend for the period[68](index=68&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on **September 10, 2015**, and as of the report date, no share options were granted, exercised, cancelled, or lapsed - The company conditionally adopted a share option scheme on **September 10, 2015**[69](index=69&type=chunk) - As of the report date, no share options were granted, exercised, cancelled, or lapsed[69](index=69&type=chunk) - No share options remained outstanding as of June 30, 2025[69](index=69&type=chunk) [Events After Reporting Period](index=26&type=section&id=Events%20After%20Reporting%20Period) No significant events requiring disclosure occurred after the reporting period and up to the date of this report - No significant events requiring disclosure occurred after the reporting period and up to the date of this report[70](index=70&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The company's audit committee, established in 2015, is responsible for reviewing financial reporting, internal controls, and risk management, and has reviewed the unaudited condensed consolidated financial statements for the period - The Audit Committee was established on **September 10, 2015**, with terms of reference formulated in accordance with the Corporate Governance Code[71](index=71&type=chunk) - Its primary responsibilities include reviewing and monitoring the Group's financial reporting process, internal control and risk management systems, nominating and monitoring external auditors, and overseeing the company's continuing connected transactions[71](index=71&type=chunk) - The Audit Committee comprises three independent non-executive directors, with Mr. Tam Chun Chung as Chairman[71](index=71&type=chunk) - It has reviewed the Group's unaudited condensed consolidated financial statements for the period[71](index=71&type=chunk) [By Order of the Board](index=27&type=section&id=By%20Order%20of%20the%20Board) This announcement was published by Mr. Wong King Kwong, Chairman and Executive Director, on **August 28, 2025**, and lists the Board members as of the report date - Announcement Date: **August 28, 2025**[72](index=72&type=chunk) - Executive Directors: Mr. Wong King Kwong, Ms. So Nui Ho, and Mr. Tang Shun Man[72](index=72&type=chunk) - Independent Non-executive Directors: Mr. Chung Yuk Ming, Mr. Lau Kwok Lok, and Mr. Tam Chun Chung[72](index=72&type=chunk)

Financial Performance - Total revenue for the six months ended June 30, 2025, was RMB 157,431 thousand, a decrease of 19.7% compared to RMB 196,046 thousand in 2024[11] - Gross profit for the same period was RMB 115,509 thousand, down 21.3% from RMB 146,739 thousand in 2024[11] - Profit before tax decreased by 28.4% to RMB 32,022 thousand from RMB 44,751 thousand in 2024[11] - Total comprehensive income for the period was RMB 28,495 thousand, a decline of 19.2% compared to RMB 35,247 thousand in 2024[11] - Profit attributable to owners of the parent was RMB 30,136 thousand, down 17.0% from RMB 36,320 thousand in 2024[11] - The company reported a net profit of RMB 28,495 thousand for the six months ended June 30, 2025, compared to RMB 35,247 thousand in 2024, reflecting a decline of 19.2%[114] - The operating profit for the six months ended June 30, 2025, was RMB 33,567 thousand, down from RMB 46,748 thousand for the same period in 2024[54] - The pre-tax profit for the six months ended June 30, 2025, was RMB 32,022 thousand, a decrease of 28.5% from RMB 44,751 thousand in the same period of 2024[131] Segment Performance - The living services segment saw a significant revenue increase of 55.2% to RMB 58,026 thousand, accounting for 36.9% of total revenue[19] - The gaming segment's revenue decreased by 39.9% to RMB 21,498 thousand, representing 13.7% of total revenue[23] - The entertainment segment's revenue decreased by 32.6% to RMB 51,084 thousand, accounting for 32.4% of total revenue, with a gross margin decline of 3.7%[21] - The corporate welfare segment's revenue decreased by 42.5% to RMB 25,429 thousand, with a gross margin increase of 1.8%[24] - The communication segment's revenue fell by 52.4% to RMB 1,394 thousand, only 0.9% of total revenue, while its gross profit increased significantly by 10,850.0% to RMB 657 thousand[22] Cash Flow and Liquidity - The company reported cash and cash equivalents of RMB 273,148 thousand, ensuring stable operating funds[17] - Net cash generated from operating activities for the six months ended June 30, 2025, was RMB 90,858 thousand, significantly higher than RMB 31,248 thousand in 2024[62][63] - Cash and cash equivalents as of June 30, 2025, amounted to RMB 273,148 thousand, up from RMB 203,405 thousand in 2024, reflecting a net increase of RMB 69,743 thousand[61][62] Assets and Liabilities - Total assets as of June 30, 2025, were RMB 1,767,170 thousand, a slight increase of 0.2% from RMB 1,764,025 thousand at the end of 2024[12] - Total liabilities decreased by 4.5% to RMB 460,738 thousand from RMB 482,521 thousand in 2024[12] - The company's net asset value increased by 1.9% to RMB 1,306,432 thousand from RMB 1,281,504 thousand in 2024[12] - Trade receivables increased to RMB 545,904 thousand as of June 30, 2025, up from RMB 493,143 thousand at the end of 2024[115] - Current liabilities decreased to RMB 456,047 thousand as of June 30, 2025, compared to RMB 480,551 thousand at the end of 2024[115] Cost Management - Administrative expenses decreased from RMB 48,183 thousand in H1 2024 to RMB 38,230 thousand in H1 2025, indicating improved cost management[30] - Total sales cost decreased by 15.0% from RMB 49,307 thousand in H1 2024 to RMB 41,922 thousand in H1 2025, mainly due to lower commission fees and reduced labor costs[41] - Commission costs fell by 26.3% from RMB 12,183 thousand in H1 2024 to RMB 8,977 thousand in H1 2025, reflecting a decline in digital product transactions[42] - Labor-related costs decreased by 8.1% from RMB 31,217 thousand in H1 2024 to RMB 28,702 thousand in H1 2025, due to adjustments in the operational team structure[43] Strategic Focus - The company is focusing on enhancing operational efficiency and risk management while building a talent supply chain to support long-term development[15] - The company aims to enhance profitability and customer satisfaction by optimizing business structure and focusing on high-value areas and innovative service models[25] - Future strategies include accelerating the introduction of social sales mechanisms and refining digital operation capabilities to ensure sustainable growth[27] Shareholder Information - The total number of issued shares as of June 30, 2025, was 408,640,887, including 2,620,000 shares held as treasury stock[86] - The company repurchased 2,620,000 shares, representing approximately 0.64% of the total issued shares, at a total cost of approximately HKD 4,804,970[86] - The company does not declare or pay any dividends for the six months ended June 30, 2025[134] Corporate Governance - The company is committed to maintaining high standards of corporate governance and has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO[76] - The audit committee consists of three independent non-executive directors, responsible for reviewing financial reporting and internal control systems[82] - The company has adopted a code of conduct for securities trading, ensuring compliance by all directors during the reporting period[81] Employee Information - As of June 30, 2025, the company had 541 full-time employees, all based in China[75] - The company provides competitive compensation and benefits to employees, including various insurance plans mandated by the Chinese government[75] Investment and Capital Expenditure - Capital expenditures for the six months ended June 30, 2025, were RMB 2,727 thousand, down from RMB 2,904 thousand in 2024, indicating a reduction in spending on employee welfare service platform development[66] - The company had no significant investments or acquisitions during the six months ended June 30, 2025, and has no specific plans for major investments or acquisitions[70]

[Announcement Overview](index=1&type=section&id=I.%20Announcement%20Overview) [GEM Characteristics and Disclaimer](index=1&type=section&id=1.1%20GEM%20Characteristics%20and%20Disclaimer) The report clarifies the GEM market's high-risk nature for SMEs, urging investor caution, and states the Stock Exchange disclaims responsibility for the announcement, with directors fully accountable - The GEM market is positioned as a listing platform for **high-risk small and medium-sized companies**, requiring investors to understand potential risks and invest cautiously[3](index=3&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for this announcement's content, with the company's directors fully accountable for its **accuracy and completeness**[3](index=3&type=chunk) [Financial Highlights](index=2&type=section&id=1.2%20Financial%20Highlights) For the six months ended June 30, 2025, revenue surged by **164.8% to RMB 47.22 million**, gross profit by **42.5% to RMB 9.13 million**, and the company achieved a **profit of RMB 1.99 million**, reversing last year's loss, with no interim dividend recommended Financial Highlights for H1 2025 | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 47,223 | 17,832 | +164.8% | | Gross Profit | 9,125 | 6,405 | +42.5% | | Profit/(Loss) Attributable to Owners | 1,996 | (814) | Turned to Profit | - The Board does not recommend paying an **interim dividend** for the period[4](index=4&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=II.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue significantly increased to **RMB 47,223 thousands**, gross profit rose to **RMB 9,125 thousands**, and a profit of **RMB 1,996 thousands** was achieved, reversing the prior year's loss, with basic and diluted earnings per share at **RMB 0.059** Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 47,223 | 17,832 | | Cost of Sales | (38,098) | (11,427) | | Gross Profit | 9,125 | 6,405 | | Other Income and Gains | 3,253 | 2,414 | | Selling and Distribution Expenses | (1,293) | (615) | | Administrative Expenses | (8,705) | (8,436) | | Finance Costs | (254) | – | | Profit/(Loss) Before Tax | 2,126 | (232) | | Income Tax Expense | (130) | (582) | | Profit/(Loss) for the Period | 1,996 | (814) | | Total Comprehensive Income/(Loss) for the Period | 5,618 | (858) | | Basic and Diluted Earnings/(Loss) Per Share (RMB) | 0.059 | (0.021) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total non-current assets were **RMB 61,461 thousands**, and total current assets were **RMB 154,147 thousands**, resulting in net current assets of **RMB 34,308 thousands** after current liabilities of **RMB 119,839 thousands**, with net assets increasing to **RMB 81,200 thousands** Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 61,461 | 59,610 | | Current Assets | 154,147 | 166,280 | | Current Liabilities | 119,839 | 137,902 | | Net Current Assets | 34,308 | 28,378 | | Total Assets Less Current Liabilities | 95,769 | 87,988 | | Total Non-current Liabilities | 14,569 | 14,452 | | Net Assets | 81,200 | 73,536 | | Total Equity | 81,200 | 73,536 | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity increased from **RMB 73,536 thousands** on January 1, 2025, to **RMB 81,200 thousands**, primarily driven by a profit of **RMB 1,996 thousands**, exchange differences on foreign operations of **RMB 3,622 thousands**, new share placement of **RMB 1,395 thousands**, and share-based payments of **RMB 651 thousands** Key Data from Condensed Consolidated Statement of Changes in Equity | Metric | Jan 1, 2025 (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Total Equity | 73,536 | 81,200 | | Profit for the Period | – | 1,996 | | Exchange Differences on Translation of Foreign Operations | – | 3,622 | | Placement of New Shares under General Mandate | – | 1,395 | | Share-based Payments | – | 651 | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=2.4%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was **RMB (13,392) thousands**, net cash used in investing activities was **RMB (2,028) thousands**, and net cash from financing activities was **RMB 1,512 thousands**, resulting in a decrease in cash and cash equivalents at period-end to **RMB 62,047 thousands** Key Data from Condensed Consolidated Statement of Cash Flows | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (13,392) | (3,613) | | Net Cash Used in Investing Activities | (2,028) | (3) | | Net Cash From Financing Activities | 1,512 | – | | Net Decrease in Cash and Cash Equivalents | (13,908) | (3,616) | | Cash and Cash Equivalents at End of Period | 62,047 | 49,700 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=III.%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [General Information and Basis of Preparation](index=8&type=section&id=3.1%20General%20Information%20and%20Basis%20of%20Preparation) The company, registered in the Cayman Islands with its principal place of business in Hong Kong, primarily engages in environmental protection (wastewater treatment, soil remediation, equipment trading) and online advertising services, with its interim condensed consolidated financial statements prepared under HKAS 34 and GEM Listing Rules, and reviewed by the Audit Committee - The Group primarily engages in environmental protection businesses (wastewater treatment, soil remediation, equipment trading) and provides online advertising and related services[10](index=10&type=chunk) - The interim condensed consolidated financial statements are prepared in accordance with **HKAS 34** and the **GEM Listing Rules**, and have been reviewed by the Audit Committee[11](index=11&type=chunk)[12](index=12&type=chunk) [Operating Segment Information](index=8&type=section&id=3.2%20Operating%20Segment%20Information) The Group's operations are divided into five reportable segments: EPC projects, construction projects, equipment projects, service concession arrangements, and other segments (including O&M services and online advertising), with EPC project revenue significantly increasing to **RMB 28,242 thousands** in H1 2025, becoming the primary revenue source, while service concession arrangement revenue slightly decreased - The Group's operating segments include EPC projects, construction projects, equipment projects, service concession arrangements, and others (O&M, online advertising)[13](index=13&type=chunk)[15](index=15&type=chunk) Segment Revenue and Results for H1 2025 | Segment | H1 2025 Revenue (RMB thousands) | H1 2024 Revenue (RMB thousands) | H1 2025 Results (RMB thousands) | H1 2024 Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | EPC Projects | 28,242 | 570 | 8,421 | 90 | | Construction Projects | – | 144 | – | 4 | | Equipment Projects | 28 | 4,147 | 11 | 4,086 | | Service Concession Arrangements | 10,157 | 11,240 | 369 | 1,283 | | Others | 8,796 | 1,731 | 324 | 942 | | **Total** | **47,223** | **17,832** | **9,125** | **6,405** | - **EPC project revenue** significantly increased in H1 2025, becoming the main growth driver[17](index=17&type=chunk) [Revenue, Other Income and Gains Analysis](index=11&type=section&id=3.3%20Revenue,%20Other%20Income%20and%20Gains%20Analysis) Total revenue for H1 2025 was **RMB 47,223 thousands**, with EPC projects contributing the largest share at **RMB 28,242 thousands**, a substantial increase from the prior year, while other income and gains totaled **RMB 3,253 thousands**, primarily from increased bank interest and rental income Revenue and Other Income Analysis for H1 2025 | Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | **Revenue** | | | | EPC Projects | 28,242 | 570 | | Construction Projects | – | 144 | | Equipment Projects | 28 | 4,147 | | Service Concession Arrangements | 10,157 | 11,240 | | Others | 8,796 | 1,731 | | **Total Revenue** | **47,223** | **17,832** | | **Other Income** | | | | Bank Interest Income | 817 | 507 | | Rental Income | 2,436 | 1,649 | | Exchange Gains | – | 258 | | **Total Other Income** | **3,253** | **2,414** | - **EPC project revenue** significantly increased year-on-year, serving as the primary driver of revenue growth for the period[20](index=20&type=chunk) [Profit/(Loss) Before Tax and Finance Costs](index=12&type=section&id=3.4%20Profit/(Loss)%20Before%20Tax%20and%20Finance%20Costs) In H1 2025, the company achieved a profit before tax of **RMB 2,126 thousands**, reversing the loss from the prior year, with major costs including **RMB 30,111 thousands** for services provided and **RMB 7,987 thousands** for construction contracts, and finance costs of **RMB 254 thousands** primarily from borrowing interest Profit/(Loss) Before Tax Components for H1 2025 | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Construction Contract Costs | 7,987 | 2,312 | | Cost of Services Provided | 30,111 | 8,808 | | Employee Benefit Expenses | 5,486 | 6,430 | | Bank Interest Income | (817) | (495) | | Interest on Borrowings (Finance Costs) | 261 | – | - The company's **profit before tax** turned from a loss to a profit, with major cost items being service costs and construction contract costs[21](index=21&type=chunk) [Income Tax](index=16&type=section&id=3.5%20Income%20Tax) The Group has no assessable profits in Hong Kong, thus no Hong Kong profits tax provision, while Chinese subsidiaries are subject to a 25% corporate income tax rate, with high-tech enterprises like Guangzhou Zhongke Jianyue Environmental Protection Co Ltd enjoying a preferential 15% rate, and Vietnamese subsidiaries taxed at 20%, resulting in a total tax expense of **RMB 130 thousands** for the period - There are no assessable profits in Hong Kong, Chinese high-tech enterprises enjoy a **15% preferential tax rate**, and Vietnamese subsidiaries are taxed at **20%**[29](index=29&type=chunk)[30](index=30&type=chunk) Income Tax Expense for H1 2025 | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Period – Outside Hong Kong | 132 | 582 | | Deferred | (2) | – | | **Total Tax Expense for the Period** | **130** | **582** | [Dividends](index=16&type=section&id=3.6%20Dividends) The Board does not recommend paying any interim dividend for the six months ended June 30, 2025 - The Board does not recommend paying a **2025 interim dividend** for the first half[32](index=32&type=chunk) [Earnings/(Loss) Per Share](index=16&type=section&id=3.7%20Earnings/(Loss)%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were **RMB 0.059**, compared to a loss per share of **RMB 0.021** in the prior year, primarily based on a profit attributable to owners of **RMB 1,996 thousands** Earnings/(Loss) Per Share for H1 2025 | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Equity Holders (RMB thousands) | 1,996 | (814) | | Weighted Average Number of Ordinary Shares (thousands of shares) | 33,737 | 31,937 | | Basic and Diluted Earnings/(Loss) Per Share (RMB) | 0.059 | (0.021) | - As there were no potential dilutive shares for the six months ended June 30, 2025 and 2024, diluted loss per share was the same as basic loss per share[34](index=34&type=chunk) [Trade and Bills Receivables](index=17&type=section&id=3.8%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, net trade and bills receivables totaled **RMB 43,131 thousands**, a decrease from the end of 2024, with credit terms generally 30 days, extendable to project final acceptance, and the company manages credit risk through strict control of uncollected receivables and regular review of overdue balances Trade and Bills Receivables | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 79,206 | 87,533 | | Loss Allowance | (36,075) | (36,075) | | **Net Amount** | **43,131** | **51,458** | - Trade receivables generally have a **30-day credit period**, with some extendable, and the company manages credit risk through strict control and regular review[37](index=37&type=chunk) [Trade Payables](index=18&type=section&id=3.9%20Trade%20Payables) As of June 30, 2025, total trade payables were **RMB 87,200 thousands**, slightly lower than at the end of 2024, and are unsecured, non-interest-bearing, and generally settled within 30 to 90 days Trade Payables | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 87,200 | 87,791 | - Trade payables are **unsecured, non-interest-bearing**, and generally settled within 30 to 90 days[39](index=39&type=chunk) [Commitments](index=19&type=section&id=3.10%20Commitments) As of June 30, 2025, the Group's contracted commitments for EPC and construction projects were approximately **RMB 10,704 thousands**, a significant increase from the end of 2024, primarily for the purchase of plant, machinery, and construction materials Contracted Commitments | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | EPC Projects and Construction Project Commitments | 10,704 | 3,547 | - Contracted commitments significantly increased, primarily for the purchase of **plant, machinery, and construction materials**[40](index=40&type=chunk) [Related Party Transactions](index=19&type=section&id=3.11%20Related%20Party%20Transactions) As of June 30, 2025, other payables related to directors totaled **RMB 59 thousands**, and key management personnel remuneration for H1 2025 was **RMB 900 thousands**, a decrease from the prior year Related Party Transactions | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Directors' Balances Included in Other Payables | 59 | 143 | | Key Management Personnel Remuneration (H1) | 900 | 1,189 | - Directors' balances are **unsecured, interest-free**, and repayable on demand[41](index=41&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=20&type=section&id=4.1%20Business%20Review%20and%20Outlook) The Group, a wastewater and drinking water treatment engineering service provider in China, saw revenue surge by **164.8% to RMB 47.22 million** and achieved a profit attributable to owners, primarily due to new projects in Vietnam; moving forward, the Group will focus its environmental business on Vietnam, exercise caution with local EPC projects by targeting large enterprises, increase investment in lower cash flow risk service concession arrangements and other environmental projects, and expand into property leasing and data businesses as new growth drivers [Business Review](index=20&type=section&id=4.1.1%20Business%20Review) The Group, a wastewater and drinking water treatment engineering service provider in China, primarily engages in EPC projects, equipment projects, service concession arrangements, and O&M projects, with revenue significantly increasing by **164.8% to RMB 47.22 million** and achieving a profit attributable to owners, mainly due to the commencement of new projects in Vietnam - The Group's main businesses include wastewater and drinking water treatment engineering services, covering **EPC, equipment, service concession, and O&M projects**[43](index=43&type=chunk) Business Revenue Overview for H1 2025 | Business Type | H1 2025 Revenue (RMB thousands) | H1 2024 Revenue (RMB thousands) | | :--- | :--- | :--- | | EPC Projects | 28,242 | 570 | | Equipment Projects | 28 | 4,147 | | Service Concession Arrangements | 10,157 | 11,240 | | Others (including O&M) | 8,796 | 1,731 | | **Total Revenue** | **47,223** | **17,832** | - Revenue growth and the turn to profit are primarily attributed to the **commencement of new projects in Vietnam**[44](index=44&type=chunk) [Outlook](index=21&type=section&id=4.1.2%20Outlook) The Group will shift its environmental business focus to Vietnam as a key market, adopt a more cautious approach to local EPC projects by favoring large enterprises, increase investment in service concession arrangements and other environmental projects with lower cash flow risk, and enter the property leasing market and develop data business as new growth areas - The environmental business focus is shifting to **Vietnam**, which is considered a key market for sustained development[45](index=45&type=chunk) - The selection of local EPC project clients will be more cautious, favoring **large enterprises**, and increasing investment in **service concession arrangements** and other environmental projects with lower cash flow risk[45](index=45&type=chunk) - New growth areas include the **property leasing market** (with successful project acquisition) and the **data business** (expected to see greater development in the second half)[46](index=46&type=chunk)[47](index=47&type=chunk) [Financial Review](index=22&type=section&id=4.2%20Financial%20Review) The company demonstrated strong financial performance for the period, with revenue surging by **164.8%**, gross profit increasing by **42.5%**, and a successful return to profitability, primarily driven by the launch of a new large EPC project in Vietnam; sales costs significantly rose in line with revenue, while selling and distribution expenses and administrative expenses also increased, and the Board does not recommend an interim dividend [Revenue](index=22&type=section&id=4.2.1%20Revenue) Revenue for the period was approximately **RMB 47.22 million**, a significant increase of **164.8%** or **RMB 29.39 million** compared to the same period in 2024 Revenue Overview | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 47,223 | 17,832 | +164.8% | [EPC Projects and Construction Projects](index=22&type=section&id=4.2.2%20EPC%20Projects%20and%20Construction%20Projects) EPC project revenue significantly increased by **4,854.7% to RMB 28.24 million** for the period, primarily due to a new large EPC project in Vietnam commencing in late 2024 and generating progress revenue, while construction projects generated no revenue this period EPC and Construction Project Revenue | Project Type | H1 2025 Revenue (RMB thousands) | H1 2024 Revenue (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | EPC Projects | 28,242 | 570 | +4,854.7% | | Construction Projects | – | 144 | -100% | - The new large **EPC project in Vietnam** was the primary reason for the surge in EPC revenue this period[50](index=50&type=chunk) [Equipment Projects](index=23&type=section&id=4.2.3%20Equipment%20Projects) Equipment project revenue significantly decreased to **RMB 28 thousands** for the period, far below **RMB 4,147 thousands** in the prior year, primarily due to only one wastewater treatment equipment project in H1 2025 Equipment Project Revenue | Project Type | H1 2025 Revenue (RMB thousands) | H1 2024 Revenue (RMB thousands) | | :--- | :--- | :--- | | Equipment Projects | 28 | 4,147 | - Equipment project revenue significantly decreased due to only **one wastewater treatment equipment project** this period[52](index=52&type=chunk) [Service Concession Arrangements](index=23&type=section&id=4.2.4%20Service%20Concession%20Arrangements) Revenue from the service concession arrangements segment slightly decreased by **9.6% to RMB 10.16 million** for the period, primarily from operation services for sludge treatment plants Service Concession Arrangement Revenue | Project Type | H1 2025 Revenue (RMB thousands) | H1 2024 Revenue (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Service Concession Arrangements | 10,157 | 11,240 | -9.6% | - The decrease in revenue is mainly due to slightly lower service concession arrangement service income recognized this period compared to the prior year[53](index=53&type=chunk) [Other Businesses](index=24&type=section&id=4.2.5%20Other%20Businesses) Other segment revenue significantly increased, with maintenance service revenue rising by **26.6% to RMB 2.19 million** due to an increase in O&M projects, and new online advertising and related services revenue of **RMB 6.60 million** for the period Other Business Revenue | Project Type | H1 2025 Revenue (RMB thousands) | H1 2024 Revenue (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Provision of Maintenance Services | 2,192 | 1,731 | +26.6% | | Provision of Online Advertising and Related Services | 6,604 | – | New | - The increase in **O&M projects** and the introduction of **online advertising services** are the main drivers of growth in other business revenue[54](index=54&type=chunk) [Other Income and Gains](index=24&type=section&id=4.2.6%20Other%20Income%20and%20Gains) Total other income and gains increased by **34.8% to RMB 3.25 million**, primarily driven by higher bank interest income and rental income Other Income and Gains | Project Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 3,253 | 2,414 | +34.8% | | Increase in Bank Interest Income | +310 | | | | Increase in Rental Income | +787 | | | [Cost of Sales](index=24&type=section&id=4.2.7%20Cost%20of%20Sales) Cost of sales significantly increased by **233.4% to RMB 38.10 million**, consistent with the increased revenue from the new large EPC project in Vietnam, leading to a substantial rise in construction contract costs and service costs Cost of Sales Components | Project Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 38,098 | 11,427 | +233.4% | | Construction Contract Costs | 7,987 | 2,312 | +245.5% | | Cost of Services Provided | 30,111 | 8,808 | +241.9% | - The increase in **cost of sales** is directly related to the revenue growth from the new large EPC project in Vietnam[56](index=56&type=chunk) [Gross Profit](index=25&type=section&id=4.2.8%20Gross%20Profit) Gross profit increased by **42.5% to RMB 9.13 million**, primarily due to the commencement of the new large EPC project in Vietnam, which boosted overall revenue and gross profit Gross Profit Overview | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 9,125 | 6,405 | +42.5% | - The new large **EPC project in Vietnam** is the main driver of gross profit growth[57](index=57&type=chunk) [Selling and Distribution Expenses](index=25&type=section&id=4.2.9%20Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by **110.2% to RMB 1.29 million**, primarily due to higher salaries and employee benefits, travel expenses, and repair and maintenance expenses Selling and Distribution Expenses | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 1,293 | 615 | +110.2% | - Increased **salaries, travel expenses, and repair and maintenance expenses** led to a rise in selling and distribution expenses[58](index=58&type=chunk) [Administrative Expenses](index=25&type=section&id=4.2.10%20Administrative%20Expenses) Administrative expenses slightly increased by **3.2% to RMB 8.71 million**, primarily influenced by the net effect of increased office expenses and decreased entertainment expenses Administrative Expenses | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 8,705 | 8,436 | +3.2% | - Increased office expenses were partially offset by decreased entertainment expenses, resulting in a **slight rise in administrative expenses**[59](index=59&type=chunk) [Profit/(Loss) for the Period](index=25&type=section&id=4.2.11%20Profit/(Loss)%20for%20the%20Period) The company achieved a profit of **RMB 1.99 million** for the period, successfully reversing the loss from the prior year, primarily attributed to revenue growth from the new large EPC project in Vietnam Profit/(Loss) for the Period | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 1,996 | (814) | - Revenue growth from the new large **EPC project in Vietnam** was the key factor in turning the loss into a profit this period[60](index=60&type=chunk) [Dividends](index=25&type=section&id=4.2.12%20Dividends) The Board does not recommend paying an interim dividend for the six months ended June 30, 2025 - The Board does not recommend paying a **2025 interim dividend** for the first half[61](index=61&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=25&type=section&id=4.3%20Capital%20Structure,%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, total equity attributable to shareholders was **RMB 81.20 million**, cash and bank balances were **RMB 62.05 million**, and net current assets were **RMB 34.31 million**, indicating sufficient financial resources; the gearing ratio was **43%**, slightly higher than at the end of 2024, and approximately **HKD 1.50 million** was raised through a new share placement for general working capital Capital Structure and Liquidity Overview | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Equity Attributable to Shareholders | 81,200 | 75,536 | | Cash and Bank Balances | 62,047 | 72,333 | | Net Current Assets | 34,308 | 28,378 | | Gearing Ratio | 43% | 41% | - The Group possesses **sufficient financial resources**, with cash and cash equivalents primarily denominated in RMB, HKD, and USD[63](index=63&type=chunk) - A new share placement was completed during the period, with net proceeds of approximately **HKD 1.50 million** used for general working capital[65](index=65&type=chunk) [Share Option Scheme](index=13&type=section&id=4.4%20Share%20Option%20Scheme) The company adopted a share option scheme on June 17, 2022, to incentivize and reward eligible individuals, with a 10-year validity and a maximum of **18,000,000 shares** issuable (6% of total issued shares at adoption), an exercise price based on the higher of the closing price on the grant date or the average of the preceding five days, and a 3-year vesting period (40%, 30%, 30%); as of June 30, 2025, **1,200,000 share options** remained unexercised with a weighted average exercise price of **HKD 11.90**, and approximately **RMB 651 thousands** in share option expenses were recognized for the period - The share option scheme aims to **incentivize and reward** employees and directors who contribute to the Group, with a 10-year validity[23](index=23&type=chunk)[80](index=80&type=chunk) Share Option Scheme Key Terms and Status | Item | Details | | :--- | :--- | | Maximum Number of Shares Issuable | 18,000,000 shares (6% of issued shares at adoption date) | | Vesting Period | 3 years (40%/30%/30%) | | Exercise Price | Higher of closing price on grant date or average of preceding five days' closing prices | | Unexercised Share Options as of June 30, 2025 | 1,200,000 options | | Weighted Average Exercise Price | HKD 11.90/share | | Share Option Expense Recognized in H1 2025 | RMB 651 thousands | - As of June 30, 2025, no additional share options could be granted under the scheme[96](index=96&type=chunk) [Employees and Remuneration Policy](index=34&type=section&id=4.5%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed **48 individuals**, with employee costs totaling approximately **RMB 4.8 million**, and the company is committed to ensuring remuneration levels align with industry practices and market conditions, determined by employee performance Employee and Remuneration Overview | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 48 employees | 39 employees | | Employee Costs (H1) | RMB 4.8 million | RMB 5.5 million | - The remuneration policy aims to align with **industry practices and market conditions**, and is linked to employee performance[97](index=97&type=chunk) [Events After Reporting Period](index=34&type=section&id=4.6%20Events%20After%20Reporting%20Period) Subsequent to the reporting period, on July 11, 2025, the Group entered into an investment agreement to conditionally inject **RMB 10 million** in cash and acquire a **60% equity interest** in a target company, making it an indirect non-wholly owned subsidiary; additionally, a new share placement was completed in August 2025, raising approximately **HKD 5.46 million** in net proceeds for general working capital - Subsequent to the reporting period, the Group will acquire a **60% equity interest** in a target company, making it an indirect non-wholly owned subsidiary[98](index=98&type=chunk)[99](index=99&type=chunk) - A new share placement was completed in August 2025, raising approximately **HKD 5.46 million** for general working capital[100](index=100&type=chunk) [Corporate Governance and Shareholder Information](index=35&type=section&id=V.%20Corporate%20Governance%20and%20Shareholder%20Information) [Corporate Governance Practices](index=35&type=section&id=5.1%20Corporate%20Governance%20Practices) The Board is committed to maintaining sound corporate governance standards and has adopted the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules; the roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Xie Yang, which the Board believes benefits the Group's business prospects and management, with power balance ensured by senior management and Board operations - The company has adopted the **GEM Listing Rules Corporate Governance Code** and is committed to maintaining sound governance standards[101](index=101&type=chunk)[102](index=102&type=chunk) - The roles of Chairman and Chief Executive Officer are held by the same person, an arrangement the Board believes is beneficial to the Group, with **power balance ensured** by senior management and the Board[102](index=102&type=chunk) [Directors' and Chief Executive's Interests](index=36&type=section&id=5.2%20Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, Mr. Xie Yang held **300,000 shares** (0.79% of issued share capital) and Mr. He Xuanxi held **100,000 shares** (0.26%), with no other disclosable interests or short positions in shares, underlying shares, or debentures for directors and the chief executive Directors' Long Positions in Shares | Director Name | Capacity | Number of Relevant Shares (shares) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Xie Yang | Beneficial Owner | 300,000 | 0.79% | | Mr. He Xuanxi | Beneficial Owner | 100,000 | 0.26% | - Other than as disclosed above, no other directors and chief executive had any disclosable interests or short positions in the shares, underlying shares, or debentures of the company under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance[107](index=107&type=chunk) [Major Shareholders' Interests](index=37&type=section&id=5.3%20Major%20Shareholders'%20Interests) As of June 30, 2025, Able Talent Asia Limited held **5,100,000 shares** (13.44% of issued share capital) and Direct Profit Enterprises Limited held **2,700,000 shares** (7.12%), qualifying as major shareholders Major Shareholders' Long Positions in Shares | Shareholder Name | Capacity | Number of Ordinary Shares (shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Able Talent Asia Limited | Beneficial Owner | 5,100,000 | 13.44% | | Direct Profit Enterprises Limited | Beneficial Owner | 2,700,000 | 7.12% | - Other than as disclosed above, the Directors are not aware of any person (other than a Director or chief executive of the Company) who had any interest or short position in the shares or underlying shares of the Company which would fall to be disclosed under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance[108](index=108&type=chunk) [Review of Financial Statements](index=38&type=section&id=5.4%20Review%20of%20Financial%20Statements) The Audit Committee, comprising three independent non-executive directors with Mr. Ren Yueheng as chairman, has reviewed the Group's accounting policies, financial reporting matters, and interim results, confirming their compliance with applicable accounting standards, GEM Listing Rules, and other legal requirements, with sufficient disclosures made - The Audit Committee has reviewed the interim financial statements, confirming their compliance with **accounting standards, listing rules, and legal requirements**, and that sufficient disclosures have been made[110](index=110&type=chunk) - The Audit Committee comprises **three independent non-executive directors**, with Mr. Ren Yueheng serving as chairman[110](index=110&type=chunk) [Other Disclosures](index=26&type=section&id=5.5%20Other%20Disclosures) This section covers various other disclosures, including directors' interests in material contracts, competing interests, transactions in listed securities, directors' compliance with securities dealing, the Group's material investments, significant acquisitions and disposals, contractual commitments, future investment plans, contingent liabilities, asset pledges, foreign exchange risk, advances to entities, controlling shareholder share pledges, and loan agreements and related party financial assistance, all indicating the Group maintained good compliance and a sound financial position during the reporting period [Directors' Interests in Material Contracts](index=35&type=section&id=5.5.1%20Directors'%20Interests%20in%20Material%20Contracts) During the period, no director had any direct or indirect material interest in any contract significant to the Group's business to which the company or any of its subsidiaries was a party - Directors had no **material interests in significant Group contracts** during the period[103](index=103&type=chunk) [Competing Interests](index=35&type=section&id=5.5.2%20Competing%20Interests) The directors are unaware of any business or interest held by directors, controlling shareholders, or their respective close associates that constitutes or may constitute a competing interest with the Group's business during the period - Directors, controlling shareholders, and their close associates have **no competing interests** with the Group's business[104](index=104&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=36&type=section&id=5.5.3%20Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - The company and its subsidiaries did not engage in the **purchase, sale, or redemption of listed securities** during the period[105](index=105&type=chunk) [Directors' Securities Transactions](index=37&type=section&id=5.5.4%20Directors'%20Securities%20Transactions) The company has adopted a code of conduct for directors' securities transactions that is no less stringent than the required standard set out in the GEM Listing Rules, and all directors have confirmed compliance with this standard during the period - All directors have confirmed compliance with the **GEM Listing Rules' required standard** for securities transactions[109](index=109&type=chunk) [Material Investments Held by the Group](index=26&type=section&id=5.5.5%20Material%20Investments%20Held%20by%20the%20Group) As of June 30, 2025, the Group held no material investments - As of June 30, 2025, the Group held **no material investments**[67](index=67&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Joint Ventures](index=27&type=section&id=5.5.6%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Joint%20Ventures) Other than as disclosed in this announcement, the Group had no material acquisitions or disposals of subsidiaries and joint ventures during the period - There were no other **material acquisitions or disposals of subsidiaries and joint ventures** during the period[68](index=68&type=chunk) [Commitments](index=27&type=section&id=5.5.7%20Commitments) As of June 30, 2025, the Group's contractual operating commitments were approximately **RMB 10.70 million**, primarily related to the purchase of equipment for engineering projects Contractual Operating Commitments | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contractual Operating Commitments | 10,704 | 3,547 | - Commitments are primarily related to **equipment procurement for engineering projects**[69](index=69&type=chunk) [Future Plans for Material Investments and Capital Assets](index=27&type=section&id=5.5.8%20Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) Other than as disclosed in this announcement, the Group has no plans involving material investments or additions to capital assets as of the date of this announcement - The Group currently has **no other plans for material investments or capital asset additions**[70](index=70&type=chunk) [Contingent Liabilities](index=27&type=section&id=5.5.9%20Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - The Group has **no material contingent liabilities**[71](index=71&type=chunk) [Pledge of the Group's Assets](index=27&type=section&id=5.5.10%20Pledge%20of%20the%20Group's%20Assets) As of June 30, 2025, and December 31, 2024, the Group had no bank borrowings, thus no buildings, investment properties, or leasehold land were pledged - Due to the absence of bank borrowings, the Group's assets are **not pledged**[72](index=72&type=chunk) [Foreign Exchange Risk](index=27&type=section&id=5.5.11%20Foreign%20Exchange%20Risk) The Group primarily operates in China, with most transactions settled in RMB, and directors consider foreign exchange risk to be low, with no hedging undertaken during the period - The Group's foreign exchange risk is considered **low**, and no hedging was undertaken during the period[73](index=73&type=chunk) [Advances to an Entity](index=27&type=section&id=5.5.12%20Advances%20to%20an%20Entity) As of June 30, 2025, the Group had not provided any advances to entities outside the Group - As of June 30, 2025, the Group had **not provided any advances to external entities**[74](index=74&type=chunk) [Pledge of Shares by Controlling Shareholder](index=27&type=section&id=5.5.13%20Pledge%20of%20Shares%20by%20Controlling%20Shareholder) As of June 30, 2025, the controlling shareholder had not pledged any shares - As of June 30, 2025, the controlling shareholder had **not pledged any shares**[75](index=75&type=chunk) [The Group's Loan Agreements](index=28&type=section&id=5.5.14%20The%20Group's%20Loan%20Agreements) As of June 30, 2025, the Group had not entered into any loan agreements with specific performance covenants by the controlling shareholder, and no material terms of any loan agreements were breached during the period - The Group has not entered into loan agreements with **controlling shareholder-specific performance covenants**, and no material loan agreement terms were breached[76](index=76&type=chunk) [Financial Assistance and Guarantees to Affiliated Companies](index=28&type=section&id=5.5.15%20Financial%20Assistance%20and%20Guarantees%20to%20Affiliated%20Companies) As of June 30, 2025, the Group had not provided any financial assistance or guarantees to affiliated companies - As of June 30, 2025, the Group had **not provided financial assistance or guarantees to affiliated companies**[77](index=77&type=chunk)

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) [Unaudited Interim Results Announcement](index=1&type=section&id=Unaudited%20Interim%20Results%20Announcement) Huakong Kangtai Group Co., Ltd. announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, reviewed by the audit committee and auditors - Company name: **Huakong Kangtai Group Co., Ltd.**[3](index=3&type=chunk) - Reporting period: Six months ended **June 30, 2025**[2](index=2&type=chunk)[3](index=3&type=chunk) - Audit status: Unaudited, but reviewed by the company's audit committee and auditors[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company shifted from a profit to a significant loss year-on-year, driven by decreased revenue, increased cost of sales and services, and substantial increases in other gains and losses and net impairment losses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 452,723 | 458,517 | | Cost of sales and services | (198,102) | (181,371) | | Gross profit | 254,621 | 277,146 | | Other gains and losses | (187,021) | (19,044) | | Net impairment losses recognized under expected credit loss model | (159,035) | (25,466) | | (Loss) Profit before tax | (339,251) | 3,672 | | Loss for the period | (321,425) | (4,532) | | Loss attributable to owners of the Company | (282,484) | 4,745 | | Basic (loss) earnings per share | (5.06) HK cents | 0.09 HK cents | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and equity decreased from December 31, 2024, with significant reductions in non-current assets like goodwill and intangible assets, and a notable decline in net current assets Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current assets | 730,458 | 1,030,423 | | Goodwill | 164,967 | 253,303 | | Intangible assets | 95,106 | 222,546 | | Current assets | 422,582 | 557,009 | | Current liabilities | 415,603 | 442,312 | | Net current assets | 6,979 | 114,697 | | Total equity | 620,918 | 961,536 | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Auditor's Review](index=5&type=section&id=Auditor's%20Review) The Group's interim condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by BDO Limited, Hong Kong, in accordance with Hong Kong Standard on Review Engagements 2410 - Reviewing firm: **BDO Limited, Hong Kong**[9](index=9&type=chunk) - Review standard: **Hong Kong Standard on Review Engagements 2410**[9](index=9&type=chunk) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) These interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules, and should be read in conjunction with the 2024 annual report - Preparation standards: **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** and the **Listing Rules**[10](index=10&type=chunk) - Reading recommendation: Should be read in conjunction with the **2024 annual report**[10](index=10&type=chunk) [Changes in Accounting Policies](index=5&type=section&id=Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value; new HKFRS amendments were first applied this period with no significant impact on financial position or performance - Preparation basis: **Historical cost basis**, with some financial instruments measured at **fair value**[11](index=11&type=chunk) - New standards applied: First-time application of amendments to Hong Kong Financial Reporting Standards, including **HKAS 21** and **HKFRS 1 "Lack of Exchangeability"**[12](index=12&type=chunk) - Impact: No significant impact on the financial position and performance for the current and prior periods[12](index=12&type=chunk) [Revenue and Segment Information](index=6&type=section&id=Revenue%20and%20Segment%20Information) The Group's total revenue slightly decreased year-on-year, primarily comprising pharmaceutical and fitness businesses, with stable pharmaceutical revenue and reduced fitness revenue, while mainland China remains the primary regional market Revenue by Major Product or Service Line (For the six months ended June 30) | Product/Service Line | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Manufacturing and sales of pharmaceutical products | 344,769 | 345,390 | | Private training courses | 31,852 | 35,295 | | Membership packages | 59,523 | 59,715 | | Franchise fee income | 16,579 | 18,117 | | **Total Revenue** | **452,723** | **458,517** | Revenue by Geographical Market (For the six months ended June 30) | Geographical Market | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Mainland China | 336,040 | 330,625 | | Singapore | 91,375 | 95,010 | | Taiwan | 16,579 | 18,117 | | Others | 8,729 | 14,765 | | **Total Revenue** | **452,723** | **458,517** | Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | 2025 Results (HKD thousands) | 2024 Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Pharmaceutical Business | 344,769 | 345,390 | 20,420 | 60,478 | | Fitness Business | 107,954 | 113,127 | (338,711) | (38,544) | | **Total** | **452,723** | **458,517** | **(318,291)** | **21,934** | - Pharmaceutical Business: Primarily engaged in the manufacturing and sales of pharmaceutical products, including **chemical drugs, active pharmaceutical ingredients (APIs), and API intermediates**[15](index=15&type=chunk) - Fitness Business: Primarily engaged in operating fitness centers, providing fitness and health consulting services, and **franchising operations**[15](index=15&type=chunk) [Other Gains and Losses](index=8&type=section&id=Other%20Gains%20and%20Losses) Other gains and losses recorded a significant loss this period, primarily due to substantial increases in impairment losses on intangible assets and goodwill, particularly goodwill impairment in the fitness segment Other Gains and Losses (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net exchange gains (losses) | 25,720 | (5,580) | | Impairment loss on intangible assets | (123,873) | (13,559) | | Impairment loss on goodwill | (88,417) | — | | **Total** | **(187,021)** | **(19,044)** | - Goodwill impairment in fitness segment: An impairment assessment was conducted on the goodwill of the fitness business cash-generating unit due to operating losses, operational difficulties, and tight financial resources of franchisees, resulting in an impairment loss of approximately **HKD 88,417 thousands**[16](index=16&type=chunk) [Net Impairment Losses under Expected Credit Loss Model](index=8&type=section&id=Net%20Impairment%20Losses%20under%20Expected%20Credit%20Loss%20Model) Net impairment losses recognized under the expected credit loss model significantly increased this period, primarily due to impairment losses on amounts due from an associate Net Impairment Losses Recognized under Expected Credit Loss Model (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables | 1,916 | (2,862) | | Amounts due from an associate | (161,282) | (22,565) | | **Total** | **(159,035)** | **(25,466)** | - Main reason: Credit losses have occurred on amounts due from an associate, assessed based on the **lifetime expected credit loss model**[17](index=17&type=chunk) [Taxation](index=9&type=section&id=Taxation) Taxation for the period shifted from an expense last year to a credit, primarily due to an increase in deferred tax credits Taxation (Credit) Expense (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current tax | 3,904 | 12,921 | | Deferred tax | (21,730) | (6,105) | | **Total** | **(17,826)** | **8,204** | [Loss for the Period](index=10&type=section&id=Loss%20for%20the%20Period) Loss for the period was primarily impacted by amortization and depreciation of intangible assets, inventory costs, sales and promotion expenses, and impairment losses on intangible assets and goodwill Loss for the Period is Arrived at After Charging (Crediting) the Following (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Total amortization and depreciation | 47,936 | 49,685 | | Cost of inventories recognized as expense | 101,254 | 76,631 | | Sales and promotion expenses | 201,694 | 192,789 | | Impairment loss on intangible assets | 123,873 | 13,559 | | Impairment loss on goodwill | 88,417 | — | [Earnings/(Loss) per Share](index=11&type=section&id=Earnings%2F%28Loss%29%20per%20Share) For the six months ended June 30, 2025, the company reported a basic loss per share of 5.06 HK cents, compared to earnings per share of 0.09 HK cents in the prior period, primarily due to a significant increase in loss attributable to owners of the Company Calculation of Basic (Loss) Earnings per Share (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | (Loss) Profit attributable to owners of the Company | (282,484) | 4,745 | | Weighted average number of ordinary shares | 5,578,713,777 | 5,578,713,777 | | **Basic (Loss) Earnings per Share** | **(5.06) HK cents** | **0.09 HK cents** | - No diluted earnings per share: Diluted earnings per share are not presented as there were no outstanding potential ordinary shares for the current or prior periods[21](index=21&type=chunk) [Dividends](index=11&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, and no dividends were paid, declared, or proposed during the period - Interim dividend: **Not recommended** (2024: Nil)[22](index=22&type=chunk) - Dividends for the period: **None paid, declared, or proposed**[22](index=22&type=chunk) [Property, Plant and Equipment / Intangible Assets / Right-of-use Assets](index=11&type=section&id=Property%2C%20Plant%20and%20Equipment%20%2F%20Intangible%20Assets%20%2F%20Right-of-use%20Assets) Acquisitions of property, plant and equipment increased this period, intangible assets were fully impaired due to operational difficulties in Taiwan's franchise business, and a portion of right-of-use assets was derecognized due to a modification of a Singapore fitness center lease agreement - Property, plant and equipment: Acquisitions of approximately **HKD 13,196 thousands** this period (2024: approximately HKD 9,339 thousands)[23](index=23&type=chunk) - Intangible asset impairment: Intangible assets related to the Taiwan franchise business were fully impaired by approximately **HKD 123,873 thousands** due to operational difficulties, tight financial resources, and insufficient projected franchise fee income (2024: approximately HKD 13,559 thousands)[24](index=24&type=chunk)[25](index=25&type=chunk) - Right-of-use assets: Approximately **HKD 20,656 thousands** derecognized due to modification of the Singapore fitness center property lease agreement[26](index=26&type=chunk) [Trade Receivables](index=12&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables slightly increased, primarily concentrated in the 0-90 day aging category Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 88,728 | 74,837 | | 91 to 180 days | 17,610 | 29,530 | | 181 to 365 days | 2,387 | 3,150 | | Over one year | 439 | 1,193 | | **Total** | **109,164** | **108,710** | - Credit period: Trade customers have credit periods ranging from **30 to 180 days**, while fitness business customers settle via credit card[27](index=27&type=chunk) [Trade Payables](index=12&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables slightly decreased, primarily concentrated in the 0-90 day aging category Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 4,808 | 4,258 | | 91 to 180 days | 7 | 16 | | 181 to 365 days | — | 136 | | Over one year | 1,658 | 2,249 | | **Total** | **6,473** | **6,659** | [Contingent Liabilities](index=13&type=section&id=Contingent%20Liabilities) The Group is involved in two legal proceedings (2019 and 2021 legal proceedings) related to the acquisition of True Cayman equity and profit guarantee arrangements; management assesses a low probability of significant economic outflow from these proceedings - 2019 legal proceedings: Involve the acquisition of **51% equity in True Cayman** and a sale and purchase agreement; the Group has enforced its rights under the share charge agreement and filed counterclaims, with no substantial progress and no trial date set[32](index=32&type=chunk) - 2021 legal proceedings: Involve legal action by Fester Global against Active Gains and Mr. PJW for breach of the sale and purchase agreement and shareholders' agreement, with no substantial progress and no trial date set[30](index=30&type=chunk)[32](index=32&type=chunk) - Management assessment: The likelihood of any significant economic outflow due to the aforementioned legal proceedings is **low**[30](index=30&type=chunk)[32](index=32&type=chunk) [Events After the Reporting Period](index=14&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the Group renewed a property lease agreement for a Singapore fitness center and entered into a construction contract with an associate for a Beijing R&D complex project, both constituting discloseable transactions - Singapore fitness center lease renewal: True Fitness Pte. Ltd. renewed a two-year lease agreement with Overseas Movie (Private) Limited, effective **August 5, 2025**, with an estimated recognition of right-of-use assets of approximately **HKD 16,059 thousands**[33](index=33&type=chunk) - Beijing R&D complex project: Tongfang Pharmaceutical Group Co., Ltd. signed a construction contract with Beijing Tsinghua Chuangchuang Engineering Construction Co., Ltd., valued at approximately **RMB 33,672 thousands**, for a new R&D complex; this is a discloseable and connected transaction requiring independent shareholders' approval[33](index=33&type=chunk)[34](index=34&type=chunk) - Management's preliminary assessment: Directly attributable asset costs will be capitalized as additions to **property, plant and equipment**[35](index=35&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview](index=15&type=section&id=Business%20Overview) The Group primarily engages in the manufacturing and sales of pharmaceutical products in China, as well as operating fitness centers and providing fitness and health consulting services, including franchising - Principal businesses: (i) Manufacturing and sales of pharmaceutical products in China (chemical drugs, APIs, API intermediates); (ii) Operating fitness centers, providing fitness and health consulting services, and operating franchising business to generate franchise fee income[37](index=37&type=chunk) [Financial Results](index=15&type=section&id=Financial%20Results) For the six months ended June 30, 2025, the Group's revenue and gross profit both decreased, and net loss significantly increased, primarily due to substantial impairment losses from underperforming fitness franchise operations Key Financial Results (For the six months ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | | :--- | :--- | :--- | | Revenue | 452.7 | 458.5 | | Gross profit | 254.6 | 277.1 | | Net loss | 321.4 | 4.5 | | Basic loss per share | 5.06 HK cents | 0.09 HK cents (profit) | - Main reasons for loss: Changes in fitness business franchise performance, uncertain economic outlook, intensified competition, and operational difficulties and tight funding for the Taiwan associate[39](index=39&type=chunk) - Major impairment losses: Expected credit losses of approximately **HKD 159.0 millions**, impairment loss on intangible assets of approximately **HKD 123.9 millions**, and goodwill impairment loss on fitness business of approximately **HKD 88.4 millions**[39](index=39&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) Pharmaceutical business revenue and gross profit slightly decreased due to intensified market competition but still recorded gains; fitness business revenue declined and incurred significant losses, primarily due to slower-than-expected franchise recovery and substantial impairment losses [Pharmaceutical Business](index=16&type=section&id=Pharmaceutical%20Business) Pharmaceutical business revenue and gross profit slightly decreased due to intensified market competition and product price adjustments, but still recorded gains, with increased marketing investment to maintain market share Pharmaceutical Business Financial Performance (For the six months ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | | :--- | :--- | :--- | | Revenue | 344.8 | 345.4 | | Gross profit | 238.8 | 264.4 | | Segment results | 20.4 (gain) | 60.5 (gain) | - Reasons for decline: Intensified market competition negatively impacted individual product prices, while increased marketing investment led to higher distribution and selling expenses[40](index=40&type=chunk) [Tongfang Pharmaceutical Group Co., Ltd.](index=16&type=section&id=Tongfang%20Pharmaceutical%20Group%20Co.,%20Ltd.) Tongfang Pharmaceutical primarily engages in the production and sales of chemical generic drugs, with both revenue and gross profit declining in the first half due to intensified market competition - Principal business: Production and sales of **chemical generic drugs**, with key products being prescription drugs (local anesthetics and gynecological drugs)[41](index=41&type=chunk) Tongfang Pharmaceutical Financial Performance (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Revenue | 276.8 | 278.7 | | Gross profit | 223.5 | 235.9 | - Future strategy: Improve marketing efficiency and **increase product R&D efforts**[41](index=41&type=chunk) [Chongqing Kangle Pharmaceutical Co., Ltd.](index=17&type=section&id=Chongqing%20Kangle%20Pharmaceutical%20Co.,%20Ltd.) Chongqing Kangle primarily engages in the R&D, production, and sales of APIs and API intermediates; first-half revenue grew due to increased overseas customer demand, but gross profit declined due to fluctuating market prices - Principal business: R&D, production, and sales of **APIs and API intermediates**[42](index=42&type=chunk) Chongqing Kangle Financial Performance (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Revenue | 44.9 | 40.2 | | Gross profit | 4.9 | 10.2 | - Reason for revenue growth: Increased demand from overseas customers for one of its core products, driving higher sales volumes[42](index=42&type=chunk) - Reason for gross profit decline: Fluctuations in market prices of products sold[42](index=42&type=chunk) [Fitness Business](index=17&type=section&id=Fitness%20Business) Fitness business revenue decreased and incurred significant losses, primarily due to slower-than-expected business recovery, especially operational difficulties and tight funding faced by Taiwan franchisees, leading to substantial impairment losses Fitness Business Financial Performance (For the six months ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | | :--- | :--- | :--- | | Revenue | 108.0 | 113.1 | | Of which: Franchise fee income | 16.6 | 18.1 | | Segment loss | 338.7 | 38.5 | - Reason for revenue decrease: Slower-than-expected recovery of the fitness business, including Taiwan franchise operations[43](index=43&type=chunk) - Reason for significant loss increase: Changes in franchise business performance, operational difficulties, and tight funding faced by Taiwan franchisees, leading to **substantial impairment losses**[43](index=43&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) The Group's liquidity primarily stems from cash generated from operations and bank borrowings; cash reserves slightly decreased at period-end, while the gearing ratio increased, with financial policies aimed at risk reduction and avoiding speculative derivative financial transactions [Liquidity and Funding](index=17&type=section&id=Liquidity%20and%20Funding) The Group's capital expenditures, daily operations, and investments are primarily funded by cash generated from operations and bank borrowings; cash and cash equivalents slightly decreased at period-end - Sources of funding: **Cash generated from operations** and **bank borrowings** from principal bankers[44](index=44&type=chunk) Cash and Cash Equivalents (As of June 30) | Indicator | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Bank balances and cash reserves | 78.3 | 80.6 | [Bank Borrowings](index=18&type=section&id=Bank%20Borrowings) The Group's outstanding borrowings repayable within one year decreased, primarily denominated in RMB and SGD, with a portion bearing floating interest rates; the gearing ratio increased Outstanding Borrowings (As of June 30) | Indicator | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Bank borrowings due within one year | 82.1 | 88.1 | - Currency composition: **77.5% denominated in RMB** and **22.5% in SGD**[45](index=45&type=chunk) - Interest rate composition: Approximately **22.5% bear floating interest rates**, with the remainder bearing fixed interest rates[45](index=45&type=chunk) Gearing Ratio (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 7.1% | 5.5% | [Financial Management and Policies](index=18&type=section&id=Financial%20Management%20and%20Policies) The Group's financial policies aim to minimize financial risks, avoiding speculative derivative financial transactions and high-risk financial product investments for liquid assets - Policy objective: To **minimize financial risks**[47](index=47&type=chunk) - Investment restrictions: **No participation in speculative derivative financial transactions** and **no investment of liquid assets in high-risk financial products**[47](index=47&type=chunk) [Foreign Exchange Fluctuation Risk](index=18&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The Group's operations are primarily in China and Singapore, with transactions in RMB, SGD, USD, and HKD; the Group closely monitors foreign exchange risk and may hedge when necessary, but still faces exchange rate risk from financial statement translation into HKD - Principal business regions: **China and Singapore**[48](index=48&type=chunk) - Principal transaction currencies: **RMB, SGD, USD, and HKD**[48](index=48&type=chunk) - Risk management: **Closely monitors foreign exchange risk** and considers hedging when necessary[48](index=48&type=chunk) - Presentation currency risk: Faces exchange rate risk arising from the translation of interim condensed consolidated financial statements into **HKD**[48](index=48&type=chunk) [Asset Pledges](index=19&type=section&id=Asset%20Pledges) As of June 30, 2025, the Group's bank borrowings and lease liabilities are secured by buildings and structures, investment properties, right-of-use assets, and bank balances Pledged Assets (As of June 30) | Pledged Assets | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Buildings and structures | 21,773 | 30,622 | | Investment properties | 32,524 | 32,901 | | Right-of-use assets | 1,537 | 1,434 | | Bank balances | 1,047 | 305 | | **Total** | **56,881** | **65,262** | - Secured liabilities: Bank borrowings of approximately **HKD 82,081 thousands** and lease liabilities of approximately **HKD 162 thousands**[49](index=49&type=chunk) [Significant Capital Commitments and Investments](index=19&type=section&id=Significant%20Capital%20Commitments%20and%20Investments) The Group's contracted capital commitments not provided for in the interim condensed consolidated financial statements primarily relate to the acquisition of property, plant and equipment Capital Commitments (As of June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 4,606 | 5,284 | [Employees](index=19&type=section&id=Employees) As of June 30, 2025, the Group's employee count slightly decreased, and staff costs also declined; the Group offers competitive remuneration and share award schemes to incentivize and retain talent - Number of employees: **655** (December 31, 2024: 688)[52](index=52&type=chunk) - Staff costs: Approximately **HKD 72,402 thousands** (2024: approximately HKD 75,099 thousands)[52](index=52&type=chunk) - Remuneration policy: Offers **competitive remuneration packages**, performance-based salaries and bonuses, and a **share award scheme** to incentivize and retain talent[52](index=52&type=chunk) [Outlook](index=20&type=section&id=Outlook) The Group maintains a cautiously optimistic outlook for the second half, focusing on consolidating market share for existing advantageous products and quality services, while adjusting sales and operational strategies as needed to address challenges [Overall Outlook](index=20&type=section&id=Overall%20Outlook) The Group faced intense market competition in the first half and holds a cautiously optimistic outlook for the second half, aiming to consolidate market share and adjust strategies to meet challenges - First-half challenge: Impact of **intense market competition**[53](index=53&type=chunk) - Second-half strategy: Consolidate market share for existing advantageous products and quality services, continuously monitor market dynamics, and **adjust sales and operational strategies as appropriate**[53](index=53&type=chunk) [Pharmaceutical Business Outlook](index=20&type=section&id=Pharmaceutical%20Business%20Outlook) The pharmaceutical business will continue to strengthen revenue contributions from existing advantageous products, advance new product R&D, and build a "technology-led, service-enabled" dual-driven development model to strive for sustained growth - First-half strategy: **Adjusted selling prices for some products** to secure customer relationships and market share[54](index=54&type=chunk) - Future strategy: Strengthen revenue contribution from existing advantageous products, **advance new product R&D**, enrich the sales product portfolio, and build a **"technology-led, service-enabled" dual-driven development model**[54](index=54&type=chunk) [Fitness Business Outlook](index=20&type=section&id=Fitness%20Business%20Outlook) The fitness business will closely monitor changes in the Singapore and Taiwan fitness industry landscape, developing more effective strategies including innovative services, diversified membership packages, personal training expansion, brand collaborations, and digital marketing to strengthen brand image - Future strategy: Closely monitor changes in the **Singapore and Taiwan fitness industry landscape** and formulate effective business development strategies[55](index=55&type=chunk) - Singapore fitness business initiatives: Emphasize **innovation and diversified services**, launch more varied membership packages, enrich personal training expansion courses, seek brand collaborations, and strengthen digital marketing to enhance customer acquisition capabilities[55](index=55&type=chunk) [Dividend Policy](index=21&type=section&id=Dividend%20Policy) The Board considers it prudent to maintain an appropriate level of capital to seize future business opportunities, thus not recommending an interim dividend for the six months ended June 30, 2025 - Dividend recommendation: **No interim dividend recommended** (2024: Nil)[56](index=56&type=chunk) - Reason: To maintain an **appropriate level of capital** to seize future business opportunities[56](index=56&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) [Compliance with Corporate Governance Code](index=21&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with all applicable code provisions of the Corporate Governance Code, except for the deviation from code provision C.2.1 where the Chairman and Chief Executive Officer are the same person; the Board believes this arrangement benefits business strategy execution and operational efficiency, without compromising power balance - Compliance status: **Complied with all applicable code provisions**, except for a deviation from **code provision C.2.1**[57](index=57&type=chunk) - Reason for deviation: Mr. Wang Feifei serves concurrently as Chairman and Group President; the Board believes this arrangement benefits **business strategy execution and operational efficiency**, and that the balance of power, accountability, and independent decision-making are not compromised[57](index=57&type=chunk) - Oversight mechanism: The Audit Committee has **direct access to external auditors and independent professional advisors**[57](index=57&type=chunk) [Review by Audit Committee](index=21&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles and practices, discussed internal controls and financial reporting matters, including a general review of the unaudited interim financial report, primarily relying on the external auditor's review results and management's report - Review scope: **Accounting principles and practices**, **internal controls and financial reporting matters**, and the **unaudited interim financial report**[58](index=58&type=chunk) - Review basis: Results of the external auditor's review conducted in accordance with **Hong Kong Standard on Review Engagements 2410**, and reports submitted by management[58](index=58&type=chunk) - Nature of review: **General review**, without detailed independent audit examination[58](index=58&type=chunk) [Purchase, Sale or Redemption of Shares](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) 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 shares - Share transactions: **No shares of the Company were purchased, sold, or redeemed** during the period[59](index=59&type=chunk) [Events After Reporting Period](index=22&type=section&id=Events%20After%20Reporting%20Period_Other) Subsequent to the reporting period, the Company renewed a Singapore fitness center lease agreement and entered into a construction contract with an associate for a Beijing R&D complex project, with details disclosed in Note 15 - Singapore fitness center lease renewal: A new two-year lease was entered into on **July 18, 2025**[60](index=60&type=chunk) - Beijing R&D complex project: A construction contract was signed on **August 18, 2025**, valued at approximately **RMB 33,672 thousands**[60](index=60&type=chunk) - Details reference: Note 15 "Events After the Reporting Period" contained in this announcement[60](index=60&type=chunk) [Interim Report Publication](index=22&type=section&id=Interim%20Report%20Publication) The Company's interim report for the six months ended June 30, 2025, will be published on the HKEX and the Company's website in due course - Publication platforms: **HKEX website** (http://www.hkexnews.hk) and the **Company's website** (http://www.kontafarma.com.hk)[61](index=61&type=chunk) - Report nature: The financial results contained in this announcement **do not constitute statutory financial statements**[61](index=61&type=chunk) [Board Composition](index=22&type=section&id=Board%20Composition) As of the date of this announcement, the Board comprises four executive directors, one non-executive director, and three independent non-executive directors, with Mr. Wang Feifei serving concurrently as Chairman and President - Board members: **Four executive directors** (Mr. Wang Feifei, Ms. Qiao Lina, Ms. Guo Zixiu, Mr. Liu Jiankun), **one non-executive director** (Mr. Huang Yu), and **three independent non-executive directors** (Dr. Deng Lihua, Dr. He Haoming, Mr. Yao Xiaomin)[62](index=62&type=chunk) - Chairman and President: **Mr. Wang Feifei**[62](index=62&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 China Feihe Limited 中國飛鶴有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：6186） 截至二零二五年六月三十日止六個月 的中期業績公告 財務摘要 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月： – 3 – 中國飛鶴有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司 （統 稱「本集團」、「我 們」或「飛 鶴」）截至二零二五年六月三十日止六個月（「報 告 期 間」）之 未 經 審 核 綜 合 中 期 業 績，連 同 二 零 二 四 年 同 期 之 比 較 數 字。 – 1 – • 本集團的收益為人民幣9,150.5百 萬 元，同 比 減 少9.4%； • 本集團的毛利為人民幣5,634.9百 萬 元，同 比 減 少17.8%； • 本集團的期內溢利為人民幣 ...