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 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 CHINA LEON INSPECTION HOLDING LIMITED 中國力鴻檢驗控股有限公司 中 國 力 鴻 檢 驗 控 股 有 限 公 司（「本 公 司」或「中 國 力 鴻」，連 同 其 附 屬 公 司 統 稱 為「本 集 團」）的 董 事（「董 事」）會（「董 事 會」）欣 然 公 佈 本 集 團 截 至2025年 6月30日 止 六 個 月（「本 期 間」）的 未 經 審 核 簡 明 綜 合 財 務 業 績，連 同2024年 同 期 的 比 較 數 據 載 列 如 下： – 1 – 簡 明 綜 合 損 益 及 其 他 全 面 收 益 表 截 至2025年6月30日 止 六 個 月 | | | | | | | ...

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。 （股份代號：2399） 截 至2025年6月30日 止 六 個 月 之 中 期 業 績 公 告 中 國 安 儲 能 源 集 團 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。 簡 明 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 列 值） CHINA ANCHU ENERGY STORAGE GROUP LIMITED 中國安儲能源集團有限公司 （於開曼群島註冊成 ...

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) The Company reported significant declines in sales and revenue, a net loss of RMB2.112 billion, and no interim dividend Key Financial Indicators | Indicator | Six Months Ended June 30, 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Contracted Sales | 472.0 | -48.4% | | Revenue | 586.8 | -76.2% | | Gross Loss | 70.2 | (Gross profit of 140.2 in 2024) | | Net Loss | 2,112.1 | Loss widened from RMB1,571.9 million in 2024 | | Total Assets (Period-end) | 28,375.7 | - | | Land Bank (Period-end) | 1,291,272 sq.m. | - | - The Board resolved not to declare any interim dividend[4](index=4&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) This chapter outlines the Company's H1 2025 condensed consolidated financial statements, detailing its financial position [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) H1 2025 revenue significantly decreased, gross profit turned to loss, and net loss reached RMB2.112 billion Condensed Consolidated Statement of Profit or Loss | Indicator | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 586,761 | 2,466,291 | -76.2% | | Cost of Sales | (656,934) | (2,326,078) | -71.8% | | Gross (Loss)/Profit | (70,173) | 140,213 | From profit to loss | | Operating Loss | (1,394,262) | (1,157,186) | Loss widened | | Net Finance Costs | (390,067) | (389,769) | Largely stable | | Loss for the Period | (2,112,069) | (1,571,946) | Loss widened | | Loss Attributable to Owners of the Company | (2,005,751) | (1,483,247) | Loss widened | | Basic Loss Per Share | RMB(1.30) | RMB(0.96) | Loss widened | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) H1 2025 total comprehensive loss expanded to RMB2.107 billion, driven by increased loss Condensed Consolidated Statement of Comprehensive Income | Indicator | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period | (2,112,069) | (1,571,946) | | Fair value change of equity investments measured at fair value through other comprehensive income (net of tax) | 5,250 | (22,500) | | Total Comprehensive Loss for the Period (net of tax) | (2,106,819) | (1,594,446) | | Total Comprehensive Loss Attributable to Owners of the Company | (2,000,501) | (1,505,747) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets decreased, and total equity turned into a RMB1.424 billion deficit Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 28,375,740 | 30,617,773 | -7.3% | | Non-current Assets | 7,218,283 | 7,960,355 | -9.3% | | Current Assets | 21,157,457 | 22,657,418 | -6.7% | | Total Liabilities | 29,799,764 | 29,933,034 | -0.4% | | Non-current Liabilities | 3,723,603 | 3,504,629 | +6.2% | | Current Liabilities | 26,076,161 | 26,428,405 | -1.3% | | Total (Deficit)/Equity | (1,424,024) | 684,739 | From surplus to deficit | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This chapter provides essential background and details for understanding the financial statements [General Information](index=6&type=section&id=General%20Information) CIFI Holdings (Group) Co. Ltd. is a Cayman Islands-registered property developer in China - The Company primarily engages in **property development** in China[9](index=9&type=chunk) - The ultimate controlling shareholder of the Company is **Mr. Yan Hao**[10](index=10&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) H1 2025 significant loss and overdue borrowings raise material uncertainties about going concern - For the six months ended June 30, 2025, the Group recorded a loss for the period of approximately **RMB2,112,069,000**[13](index=13&type=chunk) - As of June 30, 2025, the Group had net current liabilities of **RMB4,918,704,000**[13](index=13&type=chunk) - As of June 30, 2025, the Group defaulted on borrowings of **RMB11,903,932,000** and corresponding interest of **RMB2,715,927,000** due to overdue principal and interest repayments, with legal actions initiated by certain lenders[14](index=14&type=chunk) - Management has formulated plans, including active negotiations with creditors, accelerating property sales and collections, and controlling administrative expenses, to alleviate liquidity pressure[15](index=15&type=chunk)[16](index=16&type=chunk) [Accounting Policies](index=8&type=section&id=Accounting%20Policies) H1 2025 accounting policies are consistent with 2024, with no material impact from new HKFRS - The accounting policies adopted are consistent with the 2024 annual financial statements, except for the initial adoption of amended HKFRS[17](index=17&type=chunk) - The application of HKAS 21 (Amendments) "Lack of Exchangeability" had no material impact on these condensed consolidated financial statements[18](index=18&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) The Group manages performance across property development, investment, and other platforms - The Group's business is divided into **property development platform**, **property investment platform**, and **all other platforms** (including property management, design and decoration, investment, etc.)[19](index=19&type=chunk)[20](index=20&type=chunk) - The Group's revenue and non-current assets are primarily located in **China**[21](index=21&type=chunk) [Revenue Breakdown](index=9&type=section&id=Revenue%20Breakdown) H1 2025 total revenue was RMB586.76 million, with property sales down 92.5% Revenue Breakdown | Revenue Source | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Property Sales | 149,832 | 2,001,831 | -92.5% | | Property Management Services | 383,959 | 392,034 | -2.1% | | Rental Income | 48,709 | 60,518 | -19.5% | | Others | 4,261 | 11,908 | -64.2% | | **Total Revenue** | **586,761** | **2,466,291** | **-76.2%** | [Segment Results](index=10&type=section&id=Segment%20Results) H1 2025 saw all segments report losses, with property development recording a RMB1.647 billion loss Segment Revenue and Loss Before Income Tax | Segment | Six Months Ended June 30, 2025 Segment Revenue (RMB thousand) | Six Months Ended June 30, 2025 Segment Loss Before Income Tax (RMB thousand) | | :--- | :--- | :--- | | Property Development Platform | 156,180 | (1,647,424) | | Property Investment Platform | 46,436 | (59,627) | | All Other Platforms | 392,649 | (89,204) | | **Total Segments** | **595,265** | **(1,796,255)** | - As of June 30, 2025, the property development platform had assets of **RMB49.89 billion** and liabilities of **RMB52.50 billion**[23](index=23&type=chunk) [Trade and Other Receivables and Prepayments](index=12&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total receivables decreased to RMB6.829 billion, with increased impairment Trade and Other Receivables and Prepayments | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables – Net | 640,954 | 626,682 | | Amounts Due from Related Parties | 905,475 | 923,938 | | Amounts Due from Non-controlling Interests of Subsidiaries | 2,308,638 | 2,319,895 | | Other Receivables | 1,586,264 | 1,652,671 | | Less: Impairment Provision | (1,663,495) | (886,729) | | **Total** | **6,829,374** | **7,664,092** | - Trade receivables with an aging of less than one year amounted to **RMB5.212 billion**[26](index=26&type=chunk) - Trade and other receivables and prepayments are primarily denominated in **RMB**[27](index=27&type=chunk) [Trade and Other Payables](index=14&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total payables were RMB7.506 billion, including high interest payable Trade and Other Payables | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and Bills Payables | 1,528,427 | 1,873,420 | | Amounts Due to Related Parties | 1,412,187 | 1,400,670 | | Interest Payable | 3,168,349 | 2,763,448 | | **Total** | **7,505,681** | **7,628,469** | - Trade and bills payables with an aging of less than one year amounted to **RMB1.278 billion**[29](index=29&type=chunk) - Trade and other payables are primarily denominated in **RMB and USD**[30](index=30&type=chunk) [Other Income](index=15&type=section&id=Other%20Income) H1 2025 other income significantly decreased to RMB596 thousand, mainly from government grants Other Income | Income Source | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 596 | 5,042 | | Compensation Income | – | 406 | | **Total** | **596** | **5,448** | [Other Gains or Losses – Net](index=15&type=section&id=Other%20Gains%20or%20Losses%20%E2%80%93%20Net) H1 2025 net other loss was RMB224.017 million, mainly from financial asset fair value losses Other Gains or Losses – Net | Loss Source | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net fair value loss on financial assets measured at fair value through profit or loss | (196,344) | (360,911) | | Net exchange (loss)/gain | (13,402) | 12,415 | | Goodwill impairment | (7,389) | – | | **Total** | **(224,017)** | **(616,249)** | [Analysis of Expenses](index=16&type=section&id=Analysis%20of%20Expenses) H1 2025 total expenses decreased, but impairment losses on financial assets increased Analysis of Expenses | Expense Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Properties Sold | 174,444 | 1,922,316 | | Property Management Costs | 300,988 | 285,126 | | Impairment Provision for Properties Under Development and Properties Held for Sale | 166,976 | 101,869 | | Net Impairment Loss on Financial Assets | 809,374 | 182,576 | | Staff Costs | 100,931 | 128,069 | | **Total** | **1,678,695** | **2,789,085** | [Net Finance Costs](index=17&type=section&id=Net%20Finance%20Costs) H1 2025 finance income increased, and net finance costs were RMB390.067 million, largely stable Net Finance Costs | Indicator | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance Income | 41,422 | 7,291 | | Finance Costs | (431,489) | (397,060) | | **Net Finance Costs** | **(390,067)** | **(389,769)** | [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) H1 2025 income tax expense significantly increased due to deferred tax asset reversal Income Tax Expense | Tax Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax | (6,376) | (77,393) | | Deferred Income Tax | (309,438) | 66,093 | | **Total Income Tax Expense for the Period** | **(315,814)** | **(11,300)** | - The increase in income tax expense is primarily due to the **reversal of deferred tax assets** resulting from the Group's continuous losses[67](index=67&type=chunk) - China's corporate income tax rate is **25%**, and land appreciation tax is levied at progressive rates of **30% to 60%**[35](index=35&type=chunk)[37](index=37&type=chunk) [Loss Per Share](index=18&type=section&id=Loss%20Per%20Share) H1 2025 basic loss per share widened to RMB1.30, with no dilutive effects included Loss Per Share | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB thousand) | (2,005,751) | (1,483,247) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 1,538,813 | 1,538,813 | | **Basic Loss Per Share (RMB)** | **(1.30)** | **(0.96)** | - Due to the Group's loss, the potential dilutive effect of the share award scheme was not included in the calculation of diluted loss per share[40](index=40&type=chunk) [Dividends](index=18&type=section&id=Dividends) The Board resolved not to declare any interim dividend for H1 2025 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[41](index=41&type=chunk) [Business Review and Outlook](index=19&type=section&id=Business%20Review%20and%20Outlook) This chapter reviews China's H1 2025 market and CIFI Holdings' business platforms [Market Overview](index=19&type=section&id=Market%20Overview) H1 2025 China's GDP grew, but the real estate market faced continued pressure - China's GDP grew approximately **5.2% to 5.4%** in H1 2025, with the economy maintaining steady progress[42](index=42&type=chunk) - National new commercial housing sales area and value decreased by **2.9% and 3.8%** year-on-year, respectively, with the decline narrowing compared to full-year 2024[42](index=42&type=chunk) - Real estate policies continued the "stabilize the property market" tone, with multiple central and local measures, but sales recovery fell short of expectations, leading to immense operating pressure for property enterprises[43](index=43&type=chunk) [CIFI Property](index=20&type=section&id=CIFI%20Property) H1 2025 contracted sales significantly decreased, and property sales revenue was down 92.5% [Contracted Sales](index=20&type=section&id=Contracted%20Sales) H1 2025 contracted sales were RMB472 million, a 48.4% decrease Contracted Sales Performance | Indicator | H1 2025 | | :--- | :--- | | Contracted Sales | RMB472.0 million | | Total Contracted GFA | 32,775 sq.m. | | Average Selling Price | RMB14,401/sq.m. | - Contracted sales primarily originated from **Jiangsu region** (approximately **RMB274.2 million**, accounting for **58.1%**) and **Zhejiang region** (approximately **RMB76.4 million**, accounting for **16.2%**)[44](index=44&type=chunk) [Land Bank](index=22&type=section&id=Land%20Bank) As of June 30, 2025, the Group's total land bank was 1.2913 million sq.m. Land Bank by City Region | City Region | Total GFA (sq.m.) | % of Group's Total GFA | Attributable GFA (sq.m.) | % of Group's Attributable GFA | | :--- | :--- | :--- | :--- | :--- | | Municipalities Directly Under the Central Government | 250,196 | 19.4 | 225,768 | 27.5 | | Zhejiang Region | 126,613 | 9.7 | 97,632 | 11.9 | | Jiangsu Region | 327,365 | 25.4 | 163,858 | 20.0 | | Other Regions (mainly Wuhan) | 587,098 | 45.5 | 333,474 | 40.6 | | **Total** | **1,291,272** | **100.0** | **820,732** | **100.0** | [Revenue from Property Sales](index=23&type=section&id=Revenue%20from%20Property%20Sales) H1 2025 revenue from property sales was RMB149.832 million, a 92.5% decrease Revenue from Property Sales by Project | Project Name | Revenue (RMB thousand) | % of Total Revenue | GFA (sq.m.) | Average Selling Price (RMB/sq.m.) | | :--- | :--- | :--- | :--- | :--- | | Suzhou CIFI • Huyu Shangyuan | 59,309 | 39.6 | 4,523 | 13,113 | | Tianjin CIFI • Yujing Tiandi | 22,393 | 14.9 | 1,198 | 18,692 | | **Subtotal** | **147,369** | **98.3** | **11,318** | **13,021** | - Revenue from property sales decreased by **92.5%** year-on-year, primarily due to a reduction in GFA delivered during the review period[49](index=49&type=chunk)[55](index=55&type=chunk) [CIFI Real Estate](index=24&type=section&id=CIFI%20Real%20Estate) CIFI Real Estate focuses on long-term rental apartments and office buildings, achieving high occupancy - CIFI Real Estate platform is dedicated to holding, managing, and operating **long-term rental apartments and office properties**[50](index=50&type=chunk) Occupancy Rates at Period-end | Project Type | Occupancy Rate at June 30, 2025 | | :--- | :--- | | Apartment Projects | 96.9% | | Office Projects | 94.6% | [CIFI Services](index=24&type=section&id=CIFI%20Services) CIFI Services provides property management across 34 cities, managing over 20 million sq.m. - CIFI Services' business footprint spans **34 cities**, with a contracted GFA exceeding **20 million sq.m.**[51](index=51&type=chunk) - Services cover various property types, including residential, commercial complexes, office buildings, industrial parks, schools, banks, hospitals, and government public construction projects[51](index=51&type=chunk) [Employees and Remuneration](index=25&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the Group employed 2,575 full-time employees, with decreasing staff costs Employee Headcount | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Full-time Employees | 2,575 | 2,661 | | Employees in Property Development Business | 177 | - | | Employees in Property Management | 2,356 | - | | Employees in Customer Service and Other Related Businesses | 42 | - | Staff Costs | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Staff Costs | 100.9 | 128.1 | - The Company manages and incentivizes employees through an annual evaluation system, competitive compensation and benefits, and systematic training programs[52](index=52&type=chunk)[53](index=53&type=chunk) [Financial Performance Analysis](index=26&type=section&id=Financial%20Performance%20Analysis) This chapter analyzes CIFI Holdings' H1 2025 financial performance, revealing reasons for decline [Revenue Analysis](index=26&type=section&id=Revenue%20Analysis) H1 2025 Group revenue significantly decreased by 76.2%, primarily from property sales Revenue Analysis | Revenue Source | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property Sales | 149,832 | 2,001,831 | (92.5) | | Property Management Services | 383,959 | 392,034 | (2.1) | | Rental Income | 48,709 | 60,518 | (19.5) | | Others | 4,261 | 11,908 | (64.2) | | **Total** | **586,761** | **2,466,291** | **(76.2)** | - The decrease in property sales revenue was primarily due to a **reduction in GFA delivered** during the review period[55](index=55&type=chunk) - The decrease in rental income was primarily due to **renovations of certain commercial projects**[56](index=56&type=chunk) [Cost of Sales Analysis](index=27&type=section&id=Cost%20of%20Sales%20Analysis) H1 2025 cost of sales decreased by 71.8%, but impairment provision for properties increased Cost of Sales Breakdown | Cost Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Construction Costs | 72,765 | 690,365 | | Land Use Rights Costs | 85,465 | 1,009,487 | | Capitalized Interest | 16,214 | 222,464 | | Impairment Provision for Properties Completed for Sale or Under Development, Net | 166,976 | 101,869 | | **Total** | **656,934** | **2,326,078** | - Cost of sales decreased by **71.8%** year-on-year, consistent with the decrease in revenue[57](index=57&type=chunk) [Gross Loss/Profit and Gross Loss/Profit Margin](index=28&type=section&id=Gross%20Loss%2FProfit%20and%20Gross%20Loss%2FProfit%20Margin) H1 2025 saw a shift from gross profit to a gross loss of RMB70.173 million Gross Loss/Profit and Margin | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Gross (Loss)/Profit | RMB(70.2) million | RMB140.2 million | | Gross Loss/Profit Margin | (12.0)% | 5.7% | - The gross loss was primarily due to the **increased impairment provisions** for property projects based on the Group's prudence principle[59](index=59&type=chunk) [Fair Value Changes of Investment Properties](index=28&type=section&id=Fair%20Value%20Changes%20of%20Investment%20Properties) This chapter analyzes fair value changes of investment properties, showing expanded loss for one platform [Fair Value Loss of Investment Properties Under Property Investment Platform](index=28&type=section&id=Fair%20Value%20Loss%20of%20Investment%20Properties%20Under%20Property%20Investment%20Platform) H1 2025 fair value loss expanded to RMB79.907 million, mainly due to project impairment Fair Value Loss of Investment Properties | Indicator | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Fair Value Loss of Investment Properties | (79,907) | (50,591) | - The expanded loss was primarily due to impairment of projects such as **Beijing CIFI • Sanquan Apartment**, **Shanghai CIFI • Yinqiao Apartment**, and **Beijing CIFI • Zhongguancun Qianhai Zhongjin**[60](index=60&type=chunk) [Fair Value Gain/(Loss) of Investment Properties Under Other Platforms](index=29&type=section&id=Fair%20Value%20Gain%2F%28Loss%29%20of%20Investment%20Properties%20Under%20Other%20Platforms) H1 2025 fair value of investment properties under other platforms shifted from loss to gain Fair Value Gain/(Loss) of Investment Properties | Indicator | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Fair Value Gain/(Loss) of Investment Properties | 1,000 | (173,000) | [Selling and Marketing Costs](index=29&type=section&id=Selling%20and%20Marketing%20Costs) H1 2025 selling and marketing costs decreased by 23.0%, consistent with declining sales Selling and Marketing Costs | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Costs | 114.4 | 148.6 | (23.0) | - The decrease in selling and marketing costs is consistent with the **decline in the Group's contracted sales**[62](index=62&type=chunk) [Administrative Expenses](index=29&type=section&id=Administrative%20Expenses) H1 2025 administrative expenses significantly increased due to increased bad debt provisions Administrative Expenses | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 907.4 | 314.4 | 188.6 | - Administrative expenses increased primarily due to the **increased bad debt provisions for receivables** based on the Group's prudence principle[63](index=63&type=chunk) [Other Income and Other Gains or Losses – Net](index=29&type=section&id=Other%20Income%20and%20Other%20Gains%20or%20Losses%20%E2%80%93%20Net) H1 2025 other income was RMB0.6 million, and net other loss was RMB224.0 million Other Income and Other Gains or Losses – Net | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Other Income | 0.6 | 5.4 | | Other Net Loss | (224.0) | (616.2) | - The other net loss primarily resulted from **fair value losses on financial assets measured at fair value through profit or loss**[64](index=64&type=chunk) [Net Finance Costs](index=29&type=section&id=Net%20Finance%20Costs) H1 2025 finance income increased, and net finance costs were RMB390.1 million Net Finance Costs | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Finance Income | 41.4 | 7.3 | | Finance Costs | (431.5) | (397.1) | | **Net Finance Costs** | **(390.1)** | **(389.8)** | [Share of Results of Joint Ventures/Associates](index=29&type=section&id=Share%20of%20Results%20of%20Joint%20Ventures%2FAssociates) H1 2025 share of results was a loss of RMB11.9 million, primarily due to market downturn Share of Results of Joint Ventures/Associates | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Share of Results of Joint Ventures/Associates | (11.9) | (13.7) | - The loss was primarily due to **operating losses incurred by certain joint ventures/associates** affected by the downturn in the real estate market[66](index=66&type=chunk) [Income Tax Expense](index=30&type=section&id=Income%20Tax%20Expense) H1 2025 income tax expense significantly increased due to deferred tax asset reversal Income Tax Expense | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Income Tax Expense | (315.8) | (11.3) | - The increase in income tax expense is primarily due to the **reversal of deferred tax assets** resulting from the Group's continuous losses[67](index=67&type=chunk) [Loss for the Period](index=30&type=section&id=Loss%20for%20the%20Period) H1 2025 loss for the period widened to RMB2.112 billion Loss for the Period | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Loss for the Period | (2,112.1) | (1,571.9) | | Loss Attributable to Owners of the Company | (2,005.8) | (1,483.2) | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This chapter details CIFI Holdings' liquidity, borrowing, and risks, highlighting severe challenges [Cash Position](index=30&type=section&id=Cash%20Position) As of June 30, 2025, bank balances and cash were RMB231.1 million Bank Balances and Cash on Hand | Indicator | June 30, 2025 (RMB million) | | :--- | :--- | | Bank Balances and Cash on Hand | 231.1 | - Restricted cash is primarily for **guarantees provided for mortgage financing** of certain property buyers of the Group[70](index=70&type=chunk) [Borrowings](index=30&type=section&id=Borrowings) As of June 30, 2025, total outstanding borrowings were RMB15.858 billion, with 81.2% current Borrowings | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Current Borrowings | 12,879,038 | 13,206,007 | (2.5) | | Total Non-current Borrowings | 2,978,756 | 2,736,256 | 8.9 | | **Total** | **15,857,794** | **15,942,263** | **(0.5)** | - As of June 30, 2025, the Group's long-term borrowings accounted for approximately **18.8%** of total borrowings[73](index=73&type=chunk) - All secured borrowings are collateralized or guaranteed by **land use rights, properties under development, investment properties, properties completed for sale, shares of subsidiaries, and/or guarantees from subsidiaries**[71](index=71&type=chunk) [Net Debt to Equity Ratio](index=32&type=section&id=Net%20Debt%20to%20Equity%20Ratio) As of June 30, 2025, the net debt to equity ratio was -1,097% due to equity deficit Net Debt to Equity Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt to Equity Ratio | -1,097% | 2,281% | - The net debt to equity ratio is calculated by dividing net debt at period-end by total (deficit)/equity and multiplying by 100%[75](index=75&type=chunk) [Contingent Liabilities](index=33&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group provided RMB876.2 million in mortgage guarantees Contingent Liabilities | Contingent Liability Type | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Mortgage Guarantees for Property Buyers | 876.2 | 1,327.5 | | Bank Loan Guarantees for Joint Ventures/Associates | 680.9 | 294.3 | - The directors confirmed no significant buyer defaults, which have not had a material adverse impact on the financial position and operating results[76](index=76&type=chunk) [Off-Balance Sheet Commitments and Arrangements](index=33&type=section&id=Off-Balance%20Sheet%20Commitments%20and%20Arrangements) As of June 30, 2025, the Group had no other significant off-balance sheet commitments - As of June 30, 2025, the Group had no other significant off-balance sheet commitments and arrangements[77](index=77&type=chunk) [Interest Rate Risk](index=33&type=section&id=Interest%20Rate%20Risk) The Group faces interest rate risk from borrowings and bonds, does not hedge, and anticipates no material impact - Interest rate risk primarily arises from **borrowings from banks, trust financing providers, preference shares, and corporate bonds**[78](index=78&type=chunk) - The Company does not hedge cash flow or fair value interest rate risk[78](index=78&type=chunk) [Foreign Currency Risk](index=34&type=section&id=Foreign%20Currency%20Risk) The Group's foreign currency risk is minimal, primarily from USD assets, with no hedging policy - Almost all of the Group's transactions, assets, and liabilities are denominated in **RMB**, resulting in minimal foreign currency risk[79](index=79&type=chunk) - The primary foreign currency risk arises from **USD bank deposits and USD-denominated preference shares**[79](index=79&type=chunk) - The Company currently has no foreign currency hedging policy[79](index=79&type=chunk) [Financial Assets Measured at Fair Value Through Profit or Loss/Other Comprehensive Income](index=34&type=section&id=Financial%20Assets%20Measured%20at%20Fair%20Value%20Through%20Profit%20or%20Loss%2FOther%20Comprehensive%20Income) H1 2025 financial assets measured at fair value include liquidity funds and unlisted equity securities - Financial assets measured at fair value through profit or loss primarily include **investments in liquidity opportunity funds, wealth management products, and other private equity investments**[80](index=80&type=chunk) - Financial assets measured at fair value through other comprehensive income primarily include **investments in unlisted equity securities**[80](index=80&type=chunk) [Other Important Matters](index=34&type=section&id=Other%20Important%20Matters) This chapter discloses no significant acquisitions, limited investment plans, no dividend, and a winding-up petition [Material Acquisitions and Disposals](index=34&type=section&id=Material%20Acquisitions%20and%20Disposals) For H1 2025, the Group had no material acquisitions or disposals - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals[81](index=81&type=chunk) [Major Future Investment Plans](index=34&type=section&id=Major%20Future%20Investment%20Plans) Apart from ordinary business, there are currently no intentions for any major investments - Apart from ordinary business and seeking investors for project companies, there are currently **no major investment plans**[82](index=82&type=chunk) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for H1 2025 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[83](index=83&type=chunk) [Winding-Up Petition](index=35&type=section&id=Winding-Up%20Petition) A winding-up petition for USD108 million was filed, which the Company is strongly opposing - China CITIC Financial Asset International Holdings Limited filed a winding-up petition against the Company, involving a loan debt of approximately **USD108 million**[84](index=84&type=chunk) - The petition hearing has been repeatedly adjourned, and the Company will **strongly oppose it** and take all necessary measures to protect its legal rights[84](index=84&type=chunk)[85](index=85&type=chunk) [Corporate Governance](index=35&type=section&id=Corporate%20Governance) This chapter outlines CIFI Holdings' corporate governance practices and auditor's going concern statement [Corporate Governance Practices](index=35&type=section&id=Corporate%20Governance%20Practices) The Company complies with the Corporate Governance Code, except for the combined Chairman and CEO roles - The Company complies with the Corporate Governance Code, but deviates from Code Provision C.2.1, where **Mr. Yan Hao holds both the roles of Chairman and Chief Executive Officer**[86](index=86&type=chunk)[87](index=87&type=chunk) - The Board believes Mr. Yan Hao's dual role facilitates efficient execution of business strategies, and the high proportion of non-executive directors ensures independent judgment[88](index=88&type=chunk) [Audit Committee Review of Interim Results](index=36&type=section&id=Audit%20Committee%20Review%20of%20Interim%20Results) The Audit Committee reviewed the H1 2025 unaudited interim results and accounting principles - The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's unaudited interim results and accounting principles[89](index=89&type=chunk) [Excerpt from Independent Auditor's Report](index=36&type=section&id=Excerpt%20from%20Independent%20Auditor%27s%20Report) The auditor disclaimed a conclusion due to material uncertainties about going concern - The independent auditor disclaimed a conclusion on the condensed consolidated financial statements due to **material uncertainties related to going concern**[90](index=90&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - The Group reported a **loss for the period**, **net current liabilities of RMB4.919 billion**, and **extensive overdue borrowings and interest defaults**[90](index=90&type=chunk)[91](index=91&type=chunk) - The auditor was unable to obtain sufficient appropriate evidence to support the reasonableness of the plans and measures underlying management's cash flow forecasts for its going concern assessment[92](index=92&type=chunk) [Model Code for Securities Transactions](index=37&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company adopted the Model Code for Securities Transactions, and all directors confirmed compliance - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors have confirmed compliance during the reporting period[94](index=94&type=chunk) [Repurchase, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=Repurchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For H1 2025, neither the Company nor its subsidiaries repurchased or sold listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities[95](index=95&type=chunk) - As of June 30, 2025, the Company held no treasury shares[95](index=95&type=chunk) [Publication of Report](index=38&type=section&id=Publication%20of%20Report) This interim results announcement has been published on the HKEX and the Company's website [Publication of Unaudited Interim Results and 2025 Interim Report on HKEX and Company Website](index=38&type=section&id=Publication%20of%20Unaudited%20Interim%20Results%20and%202025%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) This interim results announcement has been published on the HKEX and the Company's website - This interim results announcement has been published on the **HKEX and the Company's website**[96](index=96&type=chunk) - The 2025 interim report will be dispatched to shareholders and published on the website in due course[96](index=96&type=chunk) [By Order of the Board](index=38&type=section&id=By%20Order%20of%20the%20Board) This announcement was issued by Mr. Yan Hao, Chairman, on August 28, 2025 - This announcement was issued by **Mr. Yan Hao, Chairman of the Board**, on **August 28, 2025**[97](index=97&type=chunk) - The Board comprises **three executive directors** (including Mr. Yan Hao), **one non-executive director**, and **three independent non-executive directors**[97](index=97&type=chunk)

[Performance Summary](index=1&type=section&id=Performance%20Summary) The company achieved a 15.3% increase in total gas sales volume and a 10.6% rise in revenue for the first half of 2025 | Metric | H1 2025 | H1 2024 | YoY Growth | Remarks | | :--- | :--- | :--- | :--- | :--- | | **Total Gas Sales Volume** | 1.268 billion cubic meters | 1.100 billion cubic meters | 15.3% | Retail gas sales volume remained stable at 880 million cubic meters | | **Revenue** | RMB 4.242 billion | RMB 3.835 billion | 10.6% | | | **Integrated Gas Sales Spread** | Increased by RMB 0.01 | - | - | Retail gas profit remained robust | | **Interim Dividend** | RMB 0.046 per share | - | - | Corresponding to a core profit payout ratio of 35.0% | [Condensed Interim Consolidated Financial Statements](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) [Condensed Interim Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue increased by 10.6% to RMB 4.242 billion, but gross profit, profit for the period, and profit attributable to owners of the Company all decreased | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4,241,575 | 3,834,807 | 10.6% | | Cost of Sales | (3,729,003) | (3,291,460) | 13.3% | | Gross Profit | 512,572 | 543,347 | (5.7)% | | Operating Profit | 352,711 | 377,589 | (6.7)% | | Profit Before Income Tax | 183,289 | 211,122 | (13.2)% | | Income Tax Expense | (53,496) | (67,709) | (21.0)% | | Profit for the Period | 129,793 | 143,413 | (9.5)% | | Profit Attributable to Owners of the Company | 120,287 | 132,210 | (9.0)% | | Basic Earnings Per Share (RMB cents) | 12.41 | 13.64 | (9.0)% | [Condensed Interim Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets slightly increased, non-current assets remained stable, and current assets rose, while total liabilities increased, notably non-current borrowings | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current Assets | 9,905,600 | 9,912,541 | (0.1)% | | Current Assets | 6,286,014 | 5,997,512 | 4.8% | | **Total Assets** | 16,191,614 | 15,910,053 | 1.8% | | **Equity** | | | | | Equity Attributable to Owners of the Company | 5,969,722 | 5,944,273 | 0.4% | | Non-controlling Interests | 301,914 | 318,210 | (5.1)% | | **Total Equity** | 6,271,636 | 6,262,483 | 0.1% | | **Liabilities** | | | | | Non-current Liabilities | 6,003,708 | 5,152,757 | 16.5% | | Current Liabilities | 3,916,270 | 4,494,813 | (12.9)% | | **Total Liabilities** | 9,919,978 | 9,647,570 | 2.8% | | **Total Equity and Liabilities** | 16,191,614 | 15,910,053 | 1.8% | [Notes to the Unaudited Condensed Interim Consolidated Financial Information](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Information) [1 General Information of the Group](index=7&type=section&id=1%20General%20Information%20of%20the%20Group) Tian Lun Gas Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong in 2010, primarily engages in gas pipeline engineering, infrastructure network construction, and natural gas transmission, sales, and wholesale/retail in China - The Company was incorporated in the Cayman Islands on **May 20, 2010**, and listed on the Main Board of the Hong Kong Stock Exchange on **November 10, 2010**[10](index=10&type=chunk) - The Group primarily provides engineering construction and services, as well as gas transmission and sales, including production, wholesale, and retail of natural gas, compressed natural gas, and liquefied natural gas in China[10](index=10&type=chunk) [2 Segment Information](index=7&type=section&id=2%20Segment%20Information) The Group's operating segments are primarily categorized by product type, including retail gas, wholesale gas, engineering installation and services, and all other segments, all provided in China, with management assessing performance based on segment profit before tax - Operating segments are classified by product, mainly including retail gas, wholesale gas, and engineering installation and services, all provided in China[12](index=12&type=chunk)[13](index=13&type=chunk) Total Revenue by Segment | Segment | H1 2025 Total Revenue (RMB thousands) | H1 2024 Total Revenue (RMB thousands) | | :--- | :--- | :--- | | Retail Gas Business | 2,561,799 | 2,587,049 | | Wholesale Gas Business | 1,077,846 | 640,964 | | Engineering Installation and Services | 310,626 | 386,994 | | All Other Segments | 539,455 | 400,113 | | Inter-segment Eliminations | (248,151) | (180,313) | | **Total** | **4,241,575** | **3,834,807** | Segment Profit | Segment | H1 2025 Segment Profit (RMB thousands) | H1 2024 Segment Profit (RMB thousands) | | :--- | :--- | :--- | | Retail Gas Business | 156,378 | 158,259 | | Wholesale Gas Business | 5,638 | 18,143 | | Engineering Installation and Services | 118,151 | 165,615 | | All Other Segments | 96,357 | 79,229 | | **Total** | **376,524** | **421,246** | [3 Other Losses — Net](index=10&type=section&id=3%20Other%20Losses%20%E2%80%94%20Net) For the six months ended June 30, 2025, the Group's other losses — net significantly decreased to RMB 3.307 million from RMB 19.178 million in the prior period, primarily due to improved net exchange gains | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Exchange Gain/(Loss) | 13,858 | (27,821) | | Financial Assets at Fair Value Through Profit or Loss (Loss) | (28,339) | (6,176) | | Others | 11,174 | 14,819 | | **Total** | **(3,307)** | **(19,178)** | [4 Profit Before Income Tax](index=10&type=section&id=4%20Profit%20Before%20Income%20Tax) Profit before income tax includes raw materials and consumables used, depreciation and amortization of various assets, and gains on disposal of assets | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Raw Materials and Consumables Used | 3,380,048 | 2,955,831 | | Depreciation of Property, Plant and Equipment | 106,539 | 104,228 | | Depreciation of Investment Properties | 1,591 | 1,429 | | Amortization of Right-of-Use Assets | 6,723 | 7,238 | | Amortization of Intangible Assets | 66,106 | 63,001 | | Gain on Disposal of Property, Plant and Equipment and Right-of-Use Assets | (7,439) | (14,707) | [5 Income Tax Expense](index=11&type=section&id=5%20Income%20Tax%20Expense) The Group's income tax expense primarily comprises PRC enterprise income tax and deferred income tax, with some subsidiaries benefiting from Western Development or small and micro enterprise preferential tax policies | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax — PRC Enterprise Income Tax | 80,123 | 97,168 | | Deferred Income Tax | (26,627) | (29,459) | | **Total** | **53,496** | **67,709** | - PRC subsidiaries are subject to an enterprise income tax rate of **25%**, with some enjoying a **15%** preferential tax rate under the Western Development policy or a **5%** preferential tax rate for small and micro enterprises[20](index=20&type=chunk) [6 Finance Costs — Net](index=12&type=section&id=6%20Finance%20Costs%20%E2%80%94%20Net) The Group's net finance costs primarily consist of interest expense on borrowings, partially offset by capitalized amounts, remaining largely stable compared to the prior period | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance Income (Bank Deposits, Wealth Management Products) | (2,187) | (5,373) | | Interest Expense on Borrowings | 195,381 | 199,308 | | Lease Interest | 282 | 297 | | Other Finance Costs | 5,065 | 3,917 | | Less: Amount Capitalized on Qualifying Assets | (8,575) | (10,173) | | **Finance Costs — Net** | **189,966** | **187,976** | [7 Earnings Per Share](index=12&type=section&id=7%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the Company's basic and diluted earnings per share were both RMB 12.41 cents, a decrease from the prior period, with no dilutive potential ordinary shares during the period | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB thousands) | 120,287 | 132,210 | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 969,066 | 969,066 | | Basic Earnings Per Share (RMB cents per share) | 12.41 | 13.64 | | Diluted Earnings Per Share (RMB cents per share) | 12.41 | 13.64 | - As of June 30, 2025, the Company had no dilutive potential ordinary shares[24](index=24&type=chunk) [8 Property, Plant and Equipment, Investment Properties, Right-of-Use Assets and Intangible Assets](index=13&type=section&id=8%20Property%2C%20Plant%20and%20Equipment%2C%20Investment%20Properties%2C%20Right-of-Use%20Assets%20and%20Intangible%20Assets) During the reporting period, the Group's total net book value of property, plant and equipment, investment properties, right-of-use assets, and intangible assets slightly decreased, mainly due to depreciation, but new additions were made | Asset Category | Net Book Value as of Jan 1, 2025 (RMB thousands) | Net Book Value as of June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Property, Plant and Equipment | 3,830,652 | 3,819,182 | | Investment Properties | 36,617 | 35,026 | | Right-of-Use Assets | 278,511 | 271,258 | | Intangible Assets | 4,705,766 | 4,643,283 | | **Total** | **8,851,546** | **8,768,749** | - Total new additions for the period amounted to **RMB 101,914 thousands**, and total depreciation expense was **RMB 180,959 thousands**[25](index=25&type=chunk) [9 Investments Accounted for Using the Equity Method](index=14&type=section&id=9%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method) The Group's investments accounted for using the equity method had a period-end balance of RMB 906.221 million, primarily influenced by the share of results of associates, while joint ventures generated unrecognized losses | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Beginning Balance | 885,677 | 866,050 | | Share of Results of Associates | 31,894 | 32,841 | | Share of Results of Joint Ventures | (11,350) | (11,332) | | **Period-End Balance** | **906,221** | **887,559** | - The Group has unrecognized losses related to its equity in joint ventures totaling **RMB 47,258 thousands**, as the Group has no obligation for these losses[26](index=26&type=chunk) [10 Trade and Other Receivables](index=15&type=section&id=10%20Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and other receivables increased significantly to RMB 2.922 billion from the end of 2024, with a notable increase in amounts due from related parties Trade and Other Receivables Breakdown | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 723,466 | 611,042 | | Amounts Due from Related Parties | 1,837,470 | 1,363,511 | | Less: Impairment Allowance | (236,192) | (232,019) | | Bills Receivable | 17,515 | 13,239 | | Other Receivables | 146,513 | 99,566 | | Prepayments | 402,962 | 458,344 | | **Total** | **2,921,913** | **2,335,716** | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 1,443,044 | 884,925 | | 1 to 2 years | 930,290 | 910,406 | | 2 to 3 years | 143,779 | 136,686 | | Over 3 years | 27,976 | 28,939 | | **Total** | **2,545,089** | **1,960,956** | [11 Financial Assets at Fair Value Through Other Comprehensive Income](index=16&type=section&id=11%20Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) The Group's financial assets at fair value through other comprehensive income include unlisted equity instruments in the gas industry and bills receivable, with a significant increase in bills receivable | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets - Equity Instruments in Gas Industry | 36,800 | 36,800 | | Current Assets - Debt Instruments (Bills Receivable) | 34,373 | 14,539 | | **Total** | **71,173** | **51,339** | - The fair value of unlisted equity securities and bills receivable is measured using market approach or discounted cash flow method, and classified as Level 3 in the fair value hierarchy[28](index=28&type=chunk) [12 Financial Instruments at Fair Value Through Profit or Loss](index=17&type=section&id=12%20Financial%20Instruments%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group's financial assets at fair value through profit or loss primarily include total return swaps and currency/interest rate swap contracts, while financial liabilities mainly consist of currency/interest rate swap contracts, with new non-current and current financial liabilities recognized this period | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Financial Assets** | | | | Non-current Assets (Currency and Interest Rate Swap Contracts) | 6,470 | 6,175 | | Current Assets (Total Return Swaps) | 221,147 | 235,474 | | Current Assets (Currency and Interest Rate Swap Contracts) | 984 | 15,205 | | **Financial Liabilities** | | | | Non-current Liabilities (Currency and Interest Rate Swap Contracts) | 8,150 | — | | Current Liabilities (Currency and Interest Rate Swap Contracts) | 92 | — | - Total return swap transactions are measured at fair value, determined by quotes for similar assets in active markets, and used to hedge future share price appreciation risks related to share award schemes[31](index=31&type=chunk)[34](index=34&type=chunk) - The Group enters into RMB/USD and RMB/HKD foreign exchange instruments to diversify foreign exchange risk[34](index=34&type=chunk) [13 Share Capital, Share Premium and Treasury Shares](index=18&type=section&id=13%20Share%20Capital%2C%20Share%20Premium%20and%20Treasury%20Shares) As of June 30, 2025, the Company's share capital, share premium, and treasury shares remained stable with no changes | Item | Number of Shares (thousands) | Ordinary Shares (RMB thousands) | Share Premium (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Issued and Fully Paid (June 30, 2025) | 981,885 | 8,264 | 81,317 | 89,581 | | Treasury Shares (June 30, 2025) | 12,819 | - | - | 73,233 | [14 Borrowings](index=19&type=section&id=14%20Borrowings) As of June 30, 2025, the Group's total borrowings increased to RMB 7.504 billion, with non-current borrowings accounting for 70.2%, and a significant amount of new borrowings raised during the period Total Borrowings | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Borrowings | 5,267,915 | 4,396,432 | | Current Borrowings | 2,235,603 | 2,595,749 | | **Total Borrowings** | **7,503,518** | **6,992,181** | Borrowings Movement Analysis (H1 2025) | Item | RMB thousands | | :--- | :--- | | Beginning Balance (Jan 1, 2025) | 6,992,181 | | New Borrowings Raised | 2,796,150 | | Repayment of Borrowings | (2,253,494) | | Exchange (Gain) | (24,100) | | **Period-End Balance (June 30, 2025)** | **7,503,518** | - Interest expense on borrowings for the six months ended June 30, 2025, was **RMB 195,381 thousands**, a decrease from the prior period[35](index=35&type=chunk) [15 Deferred Tax Liabilities](index=20&type=section&id=15%20Deferred%20Tax%20Liabilities) The Group's deferred tax liabilities decreased during the reporting period, primarily due to adjustments recognized in profit or loss | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Balance as of Jan 1 | 711,079 | 735,906 | | Credited to Profit or Loss | (19,919) | (20,363) | | **Period-End Balance as of June 30** | **691,160** | **715,543** | [16 Trade and Other Payables](index=20&type=section&id=16%20Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables decreased to RMB 805.411 million from the end of 2024, mainly due to a reduction in trade payables Trade and Other Payables Breakdown | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 294,191 | 370,077 | | Amounts Due to Related Parties | 5,790 | 8,906 | | Bills Payable | 222,000 | 204,846 | | Accrued Salaries and Welfare | 3,096 | 7,651 | | Other Taxes Payable | 192,076 | 215,979 | | **Total** | **805,411** | **907,982** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 241,470 | 320,882 | | 1 to 2 years | 25,055 | 23,667 | | 2 to 3 years | 7,883 | 8,332 | | Over 3 years | 19,783 | 17,196 | | **Total** | **294,191** | **370,077** | [17 Dividends](index=21&type=section&id=17%20Dividends) The Board of Directors proposed an interim dividend of RMB 4.60 cents per share for the six months ended June 30, 2025, totaling RMB 45.167 million - The Board of Directors proposed an interim dividend of **RMB 4.60 cents per share** for the six months ended June 30, 2025, totaling **RMB 45,167 thousands**[38](index=38&type=chunk) - The interim dividend will be paid in HKD on or about November 28, 2025, with a further announcement to be made after determining the exact HKD dividend amount[38](index=38&type=chunk) [Basis of Preparation of Financial Report and Accounting Policies](index=22&type=section&id=Basis%20of%20Preparation%20of%20Financial%20Report%20and%20Accounting%20Policies) This condensed interim consolidated financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the annual financial statements; the Group has applied HKAS 21 (amended) with no significant impact - The condensed interim consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[39](index=39&type=chunk) - The Group has applied HKAS 21 (amended) "The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability," which has no significant impact on this interim report[39](index=39&type=chunk) - The Group has not adopted any new standards or interpretations that are not yet effective for the current accounting period[40](index=40&type=chunk) [Industry and Policy Review](index=23&type=section&id=Industry%20and%20Policy%20Review) [Macroeconomic and Green Development](index=23&type=section&id=Macroeconomic%20and%20Green%20Development) In the first half of 2025, China's economy grew steadily by 5.3% with optimized structure and increased demand for green and low-carbon consumption, positioning natural gas as a key transitional energy in national green development - In the first half of 2025, China's economy achieved a steady growth rate of **5.3%**, with continuous structural optimization[41](index=41&type=chunk) - Green development has become a new highlight of China's economy, with green and low-carbon consumption gaining popularity, and natural gas, as a low-carbon transitional bridge, injecting momentum into urban energy decarbonization and industrial fuel clean substitution[41](index=41&type=chunk) [Urban Gas Policies](index=23&type=section&id=Urban%20Gas%20Policies) The state continues to promote the renovation of aging urban gas pipelines, advance urban renewal actions, accelerate "two major" projects, and guide market-oriented reform of natural gas prices and digital/smart gas infrastructure development - The state continues to advance the renovation of aging urban gas pipelines, aiming to address safety risks of old pipelines and improve energy supply efficiency[42](index=42&type=chunk) - The "Opinions on Continuously Advancing Urban Renewal Actions" elevates urban renewal to a national strategy, setting phased goals for **2030** and planning to invest **RMB 800 billion** in underground pipeline renovation, including gas[42](index=42&type=chunk) - The state promotes market-oriented reform of natural gas prices, establishing a "gas source cost + reasonable profit" pricing model, and resolving cost transmission challenges through price linkage mechanisms[43](index=43&type=chunk) - The state actively promotes digital and smart gas infrastructure development, aiming for significant achievements in urban overall digital transformation by **2027** and full breakthroughs by **2030**[43](index=43&type=chunk) [Business Review and Financial Performance](index=24&type=section&id=Business%20Review%20and%20Financial%20Performance) [Overall Performance and Operating Data](index=24&type=section&id=Overall%20Performance%20and%20Operating%20Data) The Group is committed to transforming from a traditional gas supplier to an energy service provider, with total revenue growing by 10.6% in the first half, but gross profit and profit attributable to owners of the Company decreased, while natural gas sales volume significantly increased, especially in wholesale business - The Group solidifies its natural gas core business with high quality and develops value-added services and integrated energy services, driving strategic transformation towards an energy service provider[44](index=44&type=chunk) Key Performance Indicators | Metric | H1 2025 | H1 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Revenue (RMB thousands) | 4,241,575 | 3,834,807 | 10.6% | | Gross Profit (RMB thousands) | 512,572 | 543,347 | (5.7)% | | Profit Attributable to Owners of the Company (RMB thousands) | 120,287 | 132,210 | (9.0)% | | New Piped Gas Users (households) | 95,515 | 128,660 | (25.8)% | | Cumulative Piped Gas Users (households) | 5,933,308 | 5,728,585 | 3.6% | | Natural Gas Sales Volume (tens of thousands of cubic meters) | 126,814 | 110,020 | 15.3% | | Cumulative Medium and High Pressure Pipeline Length (kilometers) | 9,579 | 9,332 | 2.6% | [Gas Sales Business](index=25&type=section&id=Gas%20Sales%20Business) In the first half, retail gas sales volume remained stable, while wholesale gas sales volume significantly increased by 74.7% year-on-year, primarily driven by active promotion of energy trading business - Retail gas sales volume steadily grew to **880 million cubic meters**, expanding new users through policies such as "oil-to-gas" and "cylinder-to-pipe" conversions[46](index=46&type=chunk) - Wholesale gas sales volume reached **388 million cubic meters**, a significant year-on-year increase of **74.7%**, mainly due to vigorous promotion of energy trading business to meet peak heating season demand and accelerate market expansion[46](index=46&type=chunk) [Retail Gas Sales Volume](index=25&type=section&id=Retail%20Gas%20Sales%20Volume) Retail gas sales volume remained stable, with residential user natural gas sales volume increasing by 8.5%, but industrial and commercial, and transportation user sales volumes decreased | Retail Gas Sales Volume (tens of thousands of cubic meters) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Retail Gas Business Sales Volume | 87,973 | 87,781 | 0.2% | | — Residential User Natural Gas Sales Volume | 30,568 | 28,168 | 8.5% | | — Industrial and Commercial User Natural Gas Sales Volume | 54,278 | 55,165 | (1.6)% | | — Transportation User Natural Gas Sales Volume | 3,127 | 4,448 | (29.7)% | [Wholesale Gas Sales Volume](index=25&type=section&id=Wholesale%20Gas%20Sales%20Volume) Wholesale gas sales volume achieved a significant growth of 74.7%, reaching 388 million cubic meters | Wholesale Gas Sales Volume (tens of thousands of cubic meters) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Wholesale Gas Business Sales Volume | 38,841 | 22,239 | 74.7% | [Gas Source Optimization](index=26&type=section&id=Gas%20Source%20Optimization) The Group ensures stable and secure gas supply through diversified gas source arrangements, technological upgrades, and pipeline interconnection, effectively reducing transmission losses, with cumulative medium and high-pressure pipeline length reaching 9,579 kilometers - The Group establishes a regional "one network" by developing multi-source gas supplies, upgrading technology for intelligent pipeline network operations, and promoting gas pipeline interconnection, enhancing emergency dispatch capabilities[47](index=47&type=chunk) - As of June 30, 2025, the Group's cumulative medium and high-pressure pipeline length reached **9,579 kilometers**[47](index=47&type=chunk) [Value-Added Services](index=26&type=section&id=Value-Added%20Services) The Group actively expands value-added services, achieving significant growth in revenue and gross profit through a specialized marketing system and diversified service methods, substantially enhancing user stickiness - The Group enhances user experience and builds a value-added service ecosystem through innovative measures such as one-stop services, smart upgrades, and safety extensions[48](index=48&type=chunk) Value-Added Business Performance | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Growth Rate | | :--- | :--- | :--- | :--- | | Value-Added Business Revenue | 231 | 181 | 27.6% | | Value-Added Business Gross Profit | 114 | 81 | 40.7% | [Revenue Composition](index=27&type=section&id=Revenue%20Composition) During the reporting period, the Group's total revenue increased by 10.6% year-on-year, with significant growth in wholesale gas business and other business revenue, while engineering installation and services revenue decreased Revenue by Source | Revenue Source | H1 2025 (RMB billions) | H1 2024 (RMB billions) | YoY Growth | | :--- | :--- | :--- | :--- | | Retail Gas Business Revenue | 2.562 | 2.562 | Stable | | Wholesale Gas Business Revenue | 1.078 | 0.641 | 68.2% | | Engineering Installation and Services Revenue | 0.311 | 0.387 | (19.6)% | | Other Business Revenue | 0.291 | 0.220 | 32.3% | | **Total Revenue** | **4.242** | **3.835** | **10.6%** | [Retail Gas Business Revenue](index=27&type=section&id=Retail%20Gas%20Business%20Revenue) Retail gas business revenue remained stable at RMB 2.562 billion compared to the prior period - For the six months ended June 30, 2025, the Group's retail business revenue was **RMB 2.562 billion**, stable compared to the prior period[50](index=50&type=chunk) [Wholesale Gas Business Revenue](index=27&type=section&id=Wholesale%20Gas%20Business%20Revenue) Wholesale gas business revenue significantly increased by 68.2% year-on-year to RMB 1.078 billion - For the six months ended June 30, 2025, the Group's wholesale business revenue was **RMB 1.078 billion**, an increase of **68.2%** compared to the prior period[51](index=51&type=chunk) [Engineering Installation and Services Revenue](index=27&type=section&id=Engineering%20Installation%20and%20Services%20Revenue) Engineering installation and services revenue decreased by 19.6% year-on-year to RMB 311 million - During the reporting period, the Group's revenue from engineering installation and services was **RMB 311 million**, a year-on-year decrease of **19.6%**[52](index=52&type=chunk) [Other Business Revenue](index=27&type=section&id=Other%20Business%20Revenue) Other business revenue, primarily from value-added services, increased by 32.3% year-on-year to RMB 291 million - Other business revenue, primarily from value-added services, was **RMB 291 million** during the reporting period, a year-on-year increase of **32.3%**[53](index=53&type=chunk) [Profitability Analysis](index=28&type=section&id=Profitability%20Analysis) During the reporting period, the Group's gross profit and profit for the period both decreased, but other losses — net significantly reduced, and finance costs — net remained largely stable Key Profitability Indicators | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Gross Profit | 513 | 543 | (5.7)% | | Overall Gross Profit Margin | 12.1% | - | - | | Other Losses — Net | 3 | 19 | Decreased by RMB 16 million | | Finance Costs — Net | 190 | 188 | Largely Stable | | Share of Results of Associates and Joint Ventures | 21 | - | - | | Adjusted Core Profit | 129 | 157 | (17.7)% | | Profit for the Period | 130 | 143 | (9.1)% | | Net Profit Attributable to Owners of the Company | 120 | 132 | (9.0)% | [Gross Profit and Profit](index=28&type=section&id=Gross%20Profit%20and%20Profit) Gross profit decreased by 5.7% year-on-year to RMB 513 million during the reporting period, with an overall gross profit margin of 12.1% - During the reporting period, the Group achieved a gross profit of **RMB 513 million**, a year-on-year decrease of **5.7%**, with an overall gross profit margin of **12.1%**[54](index=54&type=chunk) [Distribution Costs and Administrative Expenses](index=28&type=section&id=Distribution%20Costs%20and%20Administrative%20Expenses) Distribution costs were RMB 41 million and administrative expenses were RMB 114 million during the reporting period - During the reporting period, distribution costs were **RMB 41 million**, and administrative expenses were **RMB 114 million**[55](index=55&type=chunk) [Other Losses — Net](index=28&type=section&id=Other%20Losses%20%E2%80%94%20Net) Other losses — net amounted to RMB 3 million, a decrease of RMB 16 million compared to the prior period - During the reporting period, the Group's other losses — net amounted to **RMB 3 million**, a decrease of **RMB 16 million** compared to the prior period[56](index=56&type=chunk) [Finance Costs — Net](index=28&type=section&id=Finance%20Costs%20%E2%80%94%20Net) Net finance costs were RMB 190 million, largely stable compared to the prior period - During the reporting period, the Group's finance costs — net amounted to **RMB 190 million**, largely stable compared to **RMB 188 million** in the prior period[57](index=57&type=chunk) [Share of Results of Associates and Joint Ventures](index=28&type=section&id=Share%20of%20Results%20of%20Associates%20and%20Joint%20Ventures) The Group's share of post-tax profit from associates and joint ventures was RMB 21 million during the reporting period - During the reporting period, the Group's share of post-tax profit from associates and joint ventures was **RMB 21 million**[58](index=58&type=chunk) [Profit for the Period and Net Profit Attributable to Owners of the Company](index=28&type=section&id=Profit%20for%20the%20Period%20and%20Net%20Profit%20Attributable%20to%20Owners%20of%20the%20Company) Profit for the period was RMB 130 million, a 9.1% year-on-year decrease; net profit attributable to owners of the Company was RMB 120 million, a 9.0% year-on-year decrease - During the reporting period, the Group achieved a profit for the period of **RMB 130 million**, a **9.1%** decrease compared to the prior period[59](index=59&type=chunk) - Net profit attributable to owners of the Company was **RMB 120 million**, a **9.0%** decrease compared to the prior period[60](index=60&type=chunk) [Financial Position and Risk Management](index=29&type=section&id=Financial%20Position%20and%20Risk%20Management) The Group maintains prudent financial management policies with ample cash and credit lines; as of June 30, 2025, total borrowings were RMB 7.504 billion, with a gearing ratio of 61.3%, and continues to monitor financing costs and exchange rate risks - As of June 30, 2025, the Group's capital expenditure was **RMB 113 million**, and cash and cash equivalents totaled **RMB 1.185 billion**[61](index=61&type=chunk) - The Group's total borrowings amounted to **RMB 7.504 billion**, with **70.2%** being non-current liabilities, and a gearing ratio of **61.3%**[61](index=61&type=chunk) - Interest expense on borrowings was **RMB 195 million**, a **2.0%** year-on-year decrease; the Group will continue to monitor exchange rate market changes and take hedging measures to reduce exchange rate risks[62](index=62&type=chunk) [Outlook and Strategy](index=30&type=section&id=Outlook%20and%20Strategy) [Macroeconomic Outlook](index=30&type=section&id=Macroeconomic%20Outlook) China's economy is expected to continue its recovery momentum in the second half of 2025, with policy support and unleashed consumption potential solidifying growth, though global trade restructuring and domestic demand recovery still pose challenges - In the second half of 2025, China's economy is expected to continue its steady pace, with the effects of stable growth policies becoming more apparent, and residents' consumption potential likely to be further unleashed[63](index=63&type=chunk) - Challenges include the restructuring of the global trade landscape, the recovery of domestic effective demand, and the cultivation and growth of strategic emerging industries such as green, low-carbon, and smart IoT[63](index=63&type=chunk) [Group Strategic Objectives and Management Optimization](index=30&type=section&id=Group%20Strategic%20Objectives%20and%20Management%20Optimization) The Group's core strategic objectives for the second half are more efficient organizational operations, a more stable business structure, and more abundant cash flow, achieved through standardized management systems, efficient decision-making, and talent pipeline development to enhance risk resistance and market competitiveness - The core strategic objectives for the second half are "**more efficient organizational operations, a more stable business structure, and more abundant cash flow**"[64](index=64&type=chunk) - Full business chain refined management will be achieved through continuously optimized safety management systems, smart customer service platforms, and engineering control processes[64](index=64&type=chunk) - Focus on capability matching and structural optimization, improve talent development mechanisms, and implement "old-to-new" practical training to ensure talent supply aligns with strategic transformation[64](index=64&type=chunk) [Main Business Development Strategies](index=31&type=section&id=Main%20Business%20Development%20Strategies) The Group will support main business growth by promoting residential gas price adjustments, deepening refined management, and expanding value-added services, while strengthening online and offline marketing and after-sales services [Gas Sales Business Strategy](index=31&type=section&id=Gas%20Sales%20Business%20Strategy) In the second half, the Group will actively promote residential gas price adjustments to enhance integrated price spreads, reduce transmission losses through refined management, and provide customized solutions for large industrial users - Actively seize policy benefits, continuously promote residential gas price adjustment in operating regions, and further enhance the integrated price spread level[65](index=65&type=chunk) - Deepen refined management, strengthen metering management, effectively reduce transmission losses; implement a "one enterprise, one policy" model for large industrial users[65](index=65&type=chunk) [Value-Added Business Strategy](index=31&type=section&id=Value-Added%20Business%20Strategy) The Group will advance the standardization of home improvement business and the development of insurance business, expand extended services, build an integrated "online + offline" marketing strategy, and seize opportunities in old residential community renovations - Actively promote the standardization of home improvement business and the development of insurance business, expanding extended services[65](index=65&type=chunk) - Build an integrated "online + offline" marketing strategy, increase brand promotion, and seize opportunities in old residential community renovations to actively promote product replacement business[65](index=65&type=chunk) - Improve the after-sales service system and comprehensively enhance customer service capabilities[65](index=65&type=chunk) [Future Outlook](index=31&type=section&id=Future%20Outlook) The Group will continue to uphold its mission of safe gas supply, actively embrace energy transformation, and through continuous technological investment, management optimization, and service upgrades, strive to inject greener, smarter, and more efficient energy into urban development - The Group will continue to uphold its core mission of safe gas supply, considering the safe and stable operation of urban energy lifelines as its primary responsibility[65](index=65&type=chunk) - Actively embrace energy transformation, and through continuous technological investment, management optimization, and service upgrades, strive to inject greener, smarter, and more efficient energy into urban development[65](index=65&type=chunk) [Other Information](index=31&type=section&id=Other%20Information) [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[66](index=66&type=chunk) [Interim Dividend](index=32&type=section&id=Interim%20Dividend) The Board of Directors announced an interim dividend of RMB 4.60 cents per share for the six months ended June 30, 2025, to be paid in HKD on or about November 28, 2025 - The Board of Directors announced an interim dividend of **RMB 4.60 cents per share** for the six months ended June 30, 2025[67](index=67&type=chunk) - The interim dividend will be paid in HKD on or about **November 28, 2025 (Friday)** to shareholders registered in the Company's register of members on **October 31, 2025 (Friday)**[67](index=67&type=chunk) [Closure of Register of Members](index=32&type=section&id=Closure%20of%20Register%20of%20Members) To determine eligibility for the interim dividend, the Company will suspend the registration of share transfers from October 24 to October 31, 2025 - To determine eligibility for the proposed interim dividend, the Company will suspend the registration of share transfers from **October 24, 2025 (Friday)** to **October 31, 2025 (Friday)**[68](index=68&type=chunk) [Standard Code for Securities Transactions by Directors](index=32&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all directors confirmed strict compliance during the reporting period - The Company has adopted the Standard Code as set out in Appendix C3 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as the code for securities transactions by directors[69](index=69&type=chunk) - All directors have confirmed their strict compliance with the relevant provisions of the Standard Code during the reporting period[69](index=69&type=chunk) [Corporate Governance Code](index=32&type=section&id=Corporate%20Governance%20Code) The Company has adopted and complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the reporting period - The Company has adopted and complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the reporting period[70](index=70&type=chunk) [Audit Committee](index=33&type=section&id=Audit%20Committee) The Company's Audit Committee comprises three independent non-executive directors and has reviewed this announcement and the Group's unaudited consolidated financial statements for the reporting period - The Company's Audit Committee comprises three independent non-executive directors: **Mr. Li Liuqing** (Chairman of the Committee), **Mr. Lei Chunyong**, and **Ms. Zhou Lin**[71](index=71&type=chunk) - The Audit Committee has reviewed this announcement and the Group's unaudited consolidated financial statements for the reporting period[71](index=71&type=chunk) [Publication of Interim Report](index=33&type=section&id=Publication%20of%20Interim%20Report) The Company's interim report for the reporting period will be published on the websites of The Stock Exchange of Hong Kong Limited and the Company in due course - The Company's interim report for the reporting period will be published in due course on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company's website (www.tianlungas.com)[72](index=72&type=chunk) [Board of Directors Information](index=33&type=section&id=Board%20of%20Directors%20Information) As of the date of this announcement, the Board of Directors includes executive directors, non-executive directors, and independent non-executive directors - The executive directors are **Mr. Xian Zhenyuan** (Chairman and Chief Executive Officer), **Ms. Li Tao**, **Mr. Xiao Hui**, and **Ms. Zhang Baixuan**; the non-executive directors are **Ms. Chen Hong** and **Mr. Zhang Daoyuan**; and the independent non-executive directors are **Mr. Li Liuqing**, **Mr. Lei Chunyong**, **Ms. Zhou Lin**, and **Ms. Tao Xiaohui**[74](index=74&type=chunk)

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 JIANDE INTERNATIONAL HOLDINGS LIMITED 建德國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：865） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 業 績 公 佈 建 德 國 際 控 股 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）欣 然 呈 報 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 未 經 審 核 業 績，連 同 去 年 同 期 的 未 經 審 核 比 較 數 字 載 列 如 下： – 1 – 簡 明 綜 合 損 益 及 其 他 全 面 ...

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 187,137, a decrease of 18.9% compared to RMB 230,720 for the same period in 2024[3]. - Gross profit for the same period was RMB 137,988, down 24.1% from RMB 181,760 in 2024[3]. - The company reported a pre-tax loss of RMB 138,564, which is a 35.1% improvement from a loss of RMB 213,581 in the previous year[3]. - Net loss for the period was RMB 134,772, a reduction of 35.5% compared to RMB 208,825 in 2024[3]. - Non-IFRS EBITDA loss was RMB 82,024, representing a 43.5% improvement from a loss of RMB 145,286 in the prior year[3]. - Non-IFRS commercial profit was RMB 30,363, down 11.0% from RMB 34,131 in 2024, with a commercial profit margin of 16.2%, up 1.4 percentage points year-on-year[3]. - The company's net loss attributable to ordinary shareholders was RMB 134,772,000 for the six months ended June 30, 2025, compared to RMB 206,487,000 for the same period in 2024[26]. - The non-IFRS EBITDA for the six months ended June 30, 2025, was RMB (82,024) thousand, an improvement from RMB (145,286) thousand in the same period of 2024[83]. - The non-IFRS commercial profit for the six months ended June 30, 2025, was RMB 30.4 million, with a commercial profit margin of 16.2%, up from 14.8% in the previous year[83][85]. Assets and Liabilities - Total non-current assets as of June 30, 2025, were RMB 2,387,393, a decrease from RMB 2,447,290 at the end of 2024[8]. - Current assets totaled RMB 732,622, down from RMB 802,480 at the end of 2024[9]. - Total liabilities amounted to RMB 1,053,748, with current liabilities at RMB 403,322 and non-current liabilities at RMB 650,426[9]. - The company's net assets were RMB 2,066,267, down from RMB 2,211,099 at the end of 2024[9]. - Trade receivables as of June 30, 2025, totaled RMB 137,529,000, down from RMB 198,567,000 as of December 31, 2024, with a significant decrease in receivables aged within 6 months[28]. - Total borrowings as of June 30, 2025, amounted to RMB 419.6 million, an increase from RMB 283.0 million as of December 31, 2024[89]. - The capital debt ratio increased to 23.9% as of June 30, 2025, compared to 16.7% as of December 31, 2024[89]. - The net current assets decreased to RMB 329.3 million as of June 30, 2025, down 25.3% from RMB 440.7 million as of December 31, 2024[90]. Market Performance - Revenue from the Chinese market was RMB 146,419,000, down 27% from RMB 200,620,000 in the previous year, while revenue from other countries/regions increased to RMB 40,718,000 from RMB 30,100,000[15]. - The VenusA series products generated RMB 138.5 million in revenue, representing 74.0% of total revenue for the first half of 2025, down from 82.9% in the same period of 2024[68]. - In the first half of 2025, the company's overseas revenue reached RMB 40.7 million, a year-on-year increase of 35.3%, accounting for 21.8% of total revenue[65]. - The company is expanding its market reach in Southeast Asia, targeting a 25% increase in market share by the end of 2024[119]. Research and Development - The company has established a product pipeline consisting of ten innovative devices, focusing on heart valve diseases, including four commercialized TAVR products and one TPVR product[41]. - R&D expenses for the six months ended June 30, 2025, and June 30, 2024, were RMB 120.9 million and RMB 180.8 million, representing 64.6% and 78.4% of the company's revenue, respectively[58]. - The company is focused on innovative medical devices for structural heart disease intervention, aiming to advance technology in China to meet patient needs[106]. - The company is committed to increasing R&D investment to maintain its leading position in the heart valve intervention field[56]. - The company has a clear and executable internationalization path supported by a leading R&D pipeline and a mature global commercialization system[108]. Operational Efficiency - Selling and distribution expenses decreased by 23.3% to RMB 100.5 million in the first half of 2025, with the selling expense ratio declining from 56.8% to 53.7%[72]. - Administrative expenses decreased by 28.5% to RMB 54.8 million in the first half of 2025, compared to RMB 76.6 million in the same period of 2024[75]. - Financing costs decreased by 26.5% to RMB 7.2 million in the first half of 2025, down from RMB 9.8 million in the same period of 2024, due to repayment of bank loans[78]. - The company continues to enhance operational efficiency through improved internal production systems and cost management strategies[40]. Corporate Governance - The company has complied with corporate governance codes applicable for the six months ending June 30, 2025[114]. - The audit committee has reviewed the interim financial results for the six months ending June 30, 2025, and found them to comply with relevant accounting standards[115]. - The board has recommended not to pay an interim dividend for the six months ending June 30, 2025[109]. Strategic Initiatives - The company plans to continue expanding its heart valve business in China and globally through organic growth and mergers and acquisitions to maximize shareholder value[100]. - The company is committed to finding strategic partners globally to explore overseas market opportunities through collaboration and joint ventures[107]. - The company aims to deepen its international market presence by integrating overseas resources and expanding into emerging markets while enhancing global sales capabilities[107]. - The company has established a global R&D network with centers in Hangzhou, Israel, and California, leveraging regional advantages for product innovation[57]. Product Development - The company is advancing the VenusP-Valve IDE (PROTEUS) pivotal clinical study in the U.S., which is expected to enroll 60 patients with severe pulmonary regurgitation[48]. - The VenusA-Valve, the first TAVR product approved in China, has a ten-year follow-up data showing a cardiac mortality rate of less than 20% and over 90% of patients experiencing no or minimal paravalvular regurgitation[45]. - VenusP-Valve, the first self-expanding TPVR product approved in Europe, received CE MDR certification in April 2022 and was approved for sale in China in July 2022, filling a clinical gap in the domestic market[46]. - The company is developing several TAVR products, including Venus-PowerX and Venus-Vitae valves[120].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 Yunfeng Financial Group Limited 雲鋒金融集團有限公司 ( 於香港註冊成立之有限公司 ) (股份代號: 376) 中期業績公告 截至二零二五年六月三十日止六個月 雲鋒金融集團有限公司（「本公司」）董事會（「董事會」）公佈本公司及其附屬公司（統稱 「本集團」）截至二零二五年六月三十日止六個月之未經審核簡明綜合中期業績，連同二零二 四年同期之比較數字。未經審核中期業績由本公司之審核委員會及本公司之獨立核數師審閱。 雲鋒金融 2025 中期業績：申請升級牌照邁向 Web3 新紀 元，重啟員工股權激勵計劃匯聚人才，核心指標創歷史新 高 雲鋒金融集團 (雲鋒金融) 欣然公佈 2025 年中期業績。雲鋒金融已計劃邁向 Web3 新紀元，旗 下證券牌照公司已向香港證監會申請升級 1、4、9 號牌照，升級獲批准後，將可提供全方位虛 擬資產相關交易服務及管理投資虛擬資產的投資組合。雲鋒金融董 ...

Financial Summary For the six months ended June 30, 2025, Xiabuxiabu Catering Management (China) Holdings Co., Ltd. saw an 18.9% year-on-year decrease in revenue, but a significant narrowing of pre-tax loss and total loss for the period, by 71.6% and 70.5% respectively [Financial Summary for the Six Months Ended June 30](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 1,942,383 | 2,394,528 | | Segment Results(1) | 6,421 | (32,916) | | Loss Before Tax | (75,721) | (267,000) | | Total Loss for the Period | (80,828) | (273,666) | | Total Loss for the Period Attributable to Owners of the Company | (84,079) | (272,820) | Overview In the first half of 2025, the Group faced weak consumer spending, resulting in an 18.9% year-on-year revenue decrease, yet successfully reduced pre-tax and net losses by over 70% through cost optimization, digital supply chain, logistics upgrades, and restaurant layout adjustments, while actively promoting membership, instant delivery, prepaid consumption, and IP collaborations to revitalize brands and enhance operational efficiency - As of the end of June 2025, the Group operated **937 restaurants** globally, with **918** in mainland China and **19** in Hong Kong, Macau, Taiwan, and other markets; **32 new Xiabuxiabu restaurants** were opened in mainland China during the first half of the year[6](index=6&type=chunk) [Revenue and Loss Overview for H1 2025](index=2&type=section&id=%E6%A6%82%E8%A6%BD) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,942.4 | 2,394.5 | -18.9% | | Xiabuxiabu Sales | 1,135.3 | 1,313.1 | -13.5% | | Coucou Sales | 745.2 | 1,004.5 | -25.8% | | Loss Before Tax | (75.7) | (267.0) | -71.6% | | Net Loss | (80.8) | (273.7) | -70.5% | - The significant reduction in losses is primarily attributed to: (i) continuous cost optimization and digital supply chain driving cost reduction and efficiency improvement; (ii) upgrading logistics hubs and optimizing delivery networks to enhance operational efficiency; (iii) optimizing restaurant layouts, closing inefficient restaurants, focusing on high-potential areas, leading to a year-on-year decrease of approximately **64.1% in asset impairment losses**[7](index=7&type=chunk) - The Group implemented a restaurant network revitalization strategy, deepened instant delivery services, expanded prepaid consumption models, and advanced deep cooperation with leading animation IPs to enhance brand vitality and operational efficiency[8](index=8&type=chunk) The Group's Restaurant Network As of the end of June 2025, the Group operated 937 restaurants globally, opening 32 new Xiabuxiabu restaurants in the first half while closing 29 Xiabuxiabu and 23 Coucou restaurants, with Xiabuxiabu showing improved table turnover but overall declining revenue and same-store sales, while Coucou faced significant declines across all key performance indicators [Xiabuxiabu Restaurant Count](index=3&type=section&id=%E5%91%B5%E5%93%BA%E5%91%B5%E5%93%BA%E9%A4%90%E5%BB%B3%E6%95%B8%E9%87%8F) As of June 30, 2025, the total number of Xiabuxiabu restaurants was 763, a decrease of 63 from the same period in 2024, with slight reductions in first-tier cities, slight increases in second-tier cities, and significant reductions in third-tier and below cities - As of the end of June 2025, the Group operated a total of **937 restaurants** globally, with **918** in mainland China and **19** in other markets; in the first half of the year, **32 new Xiabuxiabu restaurants** were opened in mainland China, while **29 Xiabuxiabu restaurants** and **23 Coucou restaurants** were closed[9](index=9&type=chunk) [Xiabuxiabu Restaurant Count by Region](index=3&type=section&id=%E5%91%B5%E5%93%BA%E5%91%B5%E5%93%BA%E9%A4%90%E5%BB%B3%E6%95%B8%E9%87%8F) | Region | June 30, 2025 () | June 30, 2025 (%) | June 30, 2024 () | June 30, 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | 1st-tier Cities | 325 | 42.6 | 328 | 39.7 | | 2nd-tier Cities | 313 | 41.0 | 306 | 37.1 | | 3rd-tier Cities and Below | 122 | 16.0 | 187 | 22.6 | | Other Markets | 3 | 0.4 | 5 | 0.6 | | Total | 763 | 100.0 | 826 | 100.0 | [Coucou Restaurant Count](index=4&type=section&id=%E6%B9%8A%E6%B9%8A%E9%A4%90%E5%BB%B3%E6%95%B8%E9%87%8F) As of June 30, 2025, the total number of Coucou restaurants was 174, a significant decrease of 71 from the same period in 2024, with notable declines in both first- and second-tier cities, and also a reduction in third-tier and below cities [Coucou Restaurant Count by Region](index=4&type=section&id=%E6%B9%8A%E6%B9%8A%E9%A4%90%E5%BB%B3%E6%95%B8%E9%87%8F) | Region | June 30, 2025 () | June 30, 2025 (%) | June 30, 2024 () | June 30, 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | 1st-tier Cities | 64 | 36.8 | 84 | 34.3 | | 2nd-tier Cities | 91 | 52.3 | 138 | 56.3 | | 3rd-tier Cities and Below | 3 | 1.7 | 7 | 2.9 | | Other Markets | 16 | 9.2 | 16 | 6.5 | | Total | 174 | 100.0 | 245 | 100.0 | [Key Performance Indicators for Xiabuxiabu Restaurants](index=5&type=section&id=%E5%91%B5%E5%93%BA%E5%91%B5%E5%93%BA%E9%A4%90%E5%BB%B3%E4%B8%BB%E8%A6%81%E8%A1%A8%E7%8F%BE%E6%8C%87%E6%A8%99) In the first half of 2025, Xiabuxiabu restaurants experienced an overall decrease in net revenue, but the average table turnover rate increased by **13.0% to 2.6 times** year-on-year, demonstrating success in enhancing customer experience and member loyalty despite weak consumer spending, though average spending per customer generally declined [Key Performance Indicators for Xiabuxiabu Restaurants](index=5&type=section&id=%E5%91%B5%E5%93%BA%E5%91%B5%E5%93%BA%E9%A4%90%E5%BB%B3%E4%B8%BB%E8%A6%81%E8%A1%A8%E7%8F%BE%E6%8C%87%E6%A8%99) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Net Revenue (RMB thousands)** | | | | 1st-tier Cities | 529,207 | 623,944 | | 2nd-tier Cities | 321,748 | 389,250 | | 3rd-tier Cities and Below | 165,843 | 223,087 | | Other Markets | 12,065 | 18,244 | | Total | 1,028,863 | 1,254,525 | | **Average Spending Per Customer (RMB)** | | | | 1st-tier Cities | 54.8 | 60.0 | | 2nd-tier Cities | 51.4 | 57.9 | | 3rd-tier Cities and Below | 52.7 | 59.2 | | Other Markets | 131.5 | 123.4 | | Average | 53.7 | 59.6 | | **Table Turnover Rate (times)** | | | | 1st-tier Cities | 3.0 | 2.8 | | 2nd-tier Cities | 2.4 | 2.1 | | 3rd-tier Cities and Below | 2.1 | 1.9 | | Other Markets | 2.8 | 2.4 | | Average | 2.6 | 2.3 | - Xiabuxiabu's customer table turnover rate increased from **2.3 times in H1 2024 to 2.6 times in H1 2025**, a year-on-year growth of **13.0%**, primarily due to active planning, focus on customer experience, enhanced member loyalty, and digital operations[17](index=17&type=chunk) [Xiabuxiabu Restaurant Same-Store Sales](index=7&type=section&id=%E5%91%B5%E5%93%BA%E5%91%B5%E5%93%BA%E9%A4%90%E5%BB%B3%E5%90%8C%E5%BA%97%E9%8A%B7%E5%94%AE) In the first half of 2025, Xiabuxiabu restaurants' same-store sales collectively decreased by **15.6%**, with double-digit declines across all city tiers in mainland China, while other markets achieved a **7.1% growth** [Xiabuxiabu Restaurant Same-Store Sales and Growth Rate](index=7&type=section&id=%E5%91%B5%E5%93%BA%E5%91%B5%E5%93%BA%E9%A4%90%E5%BB%B3%E5%90%8C%E5%BA%97%E9%8A%B7%E5%94%AE) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Same-Store Sales (RMB millions)** | | | | 1st-tier Cities | 458.8 | 548.6 | | 2nd-tier Cities | 319.8 | 373.7 | | 3rd-tier Cities and Below | 119.7 | 144.7 | | Other Markets | 12.1 | 11.3 | | Total | 910.4 | 1,078.3 | | **Same-Store Sales Growth Rate (%)** | | | | 1st-tier Cities | (16.4) | | | 2nd-tier Cities | (14.4) | | | 3rd-tier Cities and Below | (17.3) | | | Other Markets | 7.1 | | | Overall | (15.6) | | [Key Performance Indicators for Coucou Restaurants](index=8&type=section&id=%E6%B9%8A%E6%B9%8A%E9%A4%90%E5%BB%B3%E4%B8%BB%E8%A6%81%E8%A1%A8%E7%8F%BE%E6%8C%87%E6%A8%99) In the first half of 2025, Coucou restaurants experienced significant declines in both net revenue and table turnover rate, with the average turnover rate falling by **12.5% to 1.4 times** year-on-year, indicating that despite an increase in average spending per customer, the overall decline in customer traffic significantly impacted the brand [Key Performance Indicators for Coucou Restaurants](index=8&type=section&id=%E6%B9%8A%E6%B9%8A%E9%A4%90%E5%BB%B3%E4%B8%BB%E8%A6%81%E8%A1%A8%E7%8F%BE%E6%8C%87%E6%A8%99) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Net Revenue (RMB thousands)** | | | | 1st-tier Cities | 230,141 | 338,592 | | 2nd-tier Cities | 287,505 | 437,304 | | 3rd-tier Cities and Below | 7,302 | 21,373 | | Other Markets | 160,712 | 146,005 | | Total | 685,660 | 943,273 | | **Average Spending Per Customer (RMB)** | | | | 1st-tier Cities | 128.7 | 124.3 | | 2nd-tier Cities | 122.1 | 117.3 | | 3rd-tier Cities and Below | 119.9 | 116.8 | | Other Markets | 282.3 | 286.1 | | Average | 143.8 | 137.8 | | **Table Turnover Rate (times)** | | | | 1st-tier Cities | 1.5 | 1.7 | | 2nd-tier Cities | 1.3 | 1.4 | | 3rd-tier Cities and Below | 1.2 | 1.3 | | Other Markets | 2.0 | 2.2 | | Average | 1.4 | 1.6 | - The Coucou brand was significantly impacted by continuous consumer downgrading and insufficient brand product competitiveness, leading to a sustained decline in customer traffic and a **12.5% year-on-year drop in table turnover rate**; despite various marketing initiatives, their effectiveness was limited[21](index=21&type=chunk) [Coucou Restaurant Same-Store Sales](index=10&type=section&id=%E6%B9%8A%E6%B9%8A%E9%A4%90%E5%BB%B3%E5%90%8C%E5%BA%97%E9%8A%B7%E5%94%AE) In the first half of 2025, Coucou restaurants' same-store sales collectively decreased by **14.0%**, with double-digit declines across all city tiers in mainland China, the largest drop in third-tier and below cities, while other markets achieved a **5.6% growth** [Coucou Restaurant Same-Store Sales and Growth Rate](index=10&type=section&id=%E6%B9%8A%E6%B9%8A%E9%A4%90%E5%BB%B3%E5%90%8C%E5%BA%97%E9%8A%B7%E5%94%AE) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Same-Store Sales (RMB millions)** | | | | 1st-tier Cities | 221.1 | 267.7 | | 2nd-tier Cities | 270.9 | 334.8 | | 3rd-tier Cities and Below | 7.3 | 11.3 | | Other Markets | 153.7 | 145.5 | | Total | 653.0 | 759.3 | | **Same-Store Sales Growth Rate (%)** | | | | 1st-tier Cities | (17.4) | | | 2nd-tier Cities | (19.1) | | | 3rd-tier Cities and Below | (35.3) | | | Other Markets | 5.6 | | | Average | (14.0) | | Business Outlook Despite the catering industry facing challenges of slowing revenue growth, declining profits, and intensified competition, national policy support and digital transformation provide new impetus, prompting Xiabuxiabu Group to adhere to quality-first and innovation-driven principles, enhancing core competitiveness through refined operations and digital transformation, while formulating differentiated strategies for both Xiabuxiabu and Coucou brands, and exploring international market expansion [Macroeconomic and Industry Policies](index=11&type=section&id=%E5%AE%8F%E8%A7%80%E7%B6%93%E6%BF%9F%E8%88%87%E8%A1%8C%E6%A5%AD%E6%94%BF%E7%AD%96) In the first half of 2025, China's GDP grew by **5.3%** year-on-year, with catering revenue increasing by **4.3%**, and the revised "Measures for Promoting and Managing the Catering Industry" encourages healthy development, digital upgrades, and online-offline integration, providing policy support for industry recovery - In the first half of 2025, the domestic GDP grew by **5.3%** year-on-year, with catering revenue reaching **RMB 2,748 billion**, a **4.3%** year-on-year increase[24](index=24&type=chunk)[30](index=30&type=chunk) - The State Council revised the "Measures for Promoting and Managing the Catering Industry," supporting healthy development, encouraging popular, community-based, green, and healthy catering, improving service quality, innovating consumption scenarios, and promoting digital upgrades and accelerated online-offline integration[24](index=24&type=chunk) [Xiabuxiabu Brand Strategy and Outlook](index=11&type=section&id=%E5%91%B5%E5%93%BA%E5%91%B5%E5%93%BA%E5%93%81%E7%89%8C%E7%AD%96%E7%95%A5%E8%88%87%E5%B1%95%E6%9C%9B) Xiabuxiabu will focus on customer experience and member loyalty, revitalizing the brand through digital marketing, big data refined operations, IP co-branded products, and member-exclusive promotional activities, with gift card sales exceeding RMB 160 million and paid members' repurchase spending and frequency significantly increasing in the first half, providing strong support for the Group's growth, and plans for the second half include deepening the membership system, advancing logistics digital transformation, and collaborating with the Doraemon IP to capture a larger share of the youth market - Xiabuxiabu will enhance brand vitality and member loyalty through four aspects: digital marketing, big data refined operations, co-developing creative products with renowned IPs, and integrating platform resources to promote "member-exclusive" offers[24](index=24&type=chunk) [Xiabuxiabu Member Data for H1 2025](index=11&type=section&id=%E5%91%B5%E5%93%BA%E5%91%B5%E5%93%BA%E5%93%81%E7%89%8C%E7%AD%96%E7%95%A5%E8%88%87%E5%B1%95%E6%9C%9B) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Gift Card Sales Amount | Over RMB 160 million | - | - | | Gift Card Sales Quantity | Over 430,000 cards | - | - | | Average Repurchase Spending Per Paid Member | RMB 449 | RMB 432 | +3.9% | | Paid Member Consumption Frequency | 5.4 times | 4.9 times | +10.2% | | Paid Member Consumption Frequency vs. Regular Members | 4.4 times higher | - | - | - In the second half, the company will continue to optimize its member product matrix, innovate gift card benefits, deepen cooperation with third-party platforms, and expand consumption scenarios through online and offline omni-channel sales to build a comprehensive member ecosystem[26](index=26&type=chunk) - The company will advance logistics digital transformation, achieving centralized command, intensive data, and localized resource management to optimize the commercial flow system and construct the most cost-effective full-chain path[26](index=26&type=chunk) - Xiabuxiabu will collaborate with the renowned animation IP Doraemon for a comprehensive strategic partnership, creating co-branded merchandise, integrated marketing promotions, and engaging fan communities to enhance brand youthfulness and capture market share[27](index=27&type=chunk) [Coucou Brand Strategy and Outlook](index=13&type=section&id=%E6%B9%8A%E6%B9%8A%E5%93%81%E7%89%8C%E7%AD%96%E7%95%A5%E8%88%87%E5%B1%95%E6%9C%9B) In the first half of the year, the Coucou brand launched four new hotpot soup bases and a Longjing tea-flavored new product, also bringing back classic soup bases for a limited time, and leveraging its ninth-anniversary celebration, Coucou collaborated with the internationally renowned IP Miffy, introducing limited-edition sets and merchandise to expand brand reach, while actively exploring scenarios beyond hotpot dining, testing new growth points such as business lunches and solo dining options in June - In the first half, Coucou launched four new hotpot soup bases: Spring Vegetable Seafood Pickled Fresh Pot, Dahongpao Tea Fragrant Spicy Pot, Longjing Tea Fragrant Pot, and Tomato Borscht Beef Brisket Pot, and introduced a Longjing tea-flavored new product based on the tea + hotpot concept, while also bringing back the Crab Roe Yellow Croaker Pot[28](index=28&type=chunk) - Leveraging its ninth-anniversary celebration, Coucou collaborated for the first time with the internationally renowned IP Miffy, launching limited-edition sets, products, and merchandise, aiming to expand brand awareness and acquire new private domain customers[28](index=28&type=chunk) - Coucou actively explored scenarios beyond hotpot dining, beginning to test new growth points such as business lunches and solo dining options in June 2025, targeting white-collar lunch demands, with further optimization and upgrades planned for the second half of the year[28](index=28&type=chunk) [International Market Expansion](index=13&type=section&id=%E5%9C%8B%E9%9A%9B%E5%B8%82%E5%A0%B4%E6%8B%93%E5%B1%95) The Group aims to enhance brand exposure in international markets, building a "product + scenario + emotion" three-dimensional operating system through integrated online-offline marketing, expanding delivery service categories, driving traffic through social media platforms, and creating composite scenarios to strengthen user identification and loyalty - Based on regional uniqueness, the Group aims to build a "product + scenario + emotion" three-dimensional operating system to enhance brand international exposure[29](index=29&type=chunk) - Actively promoting integrated online-offline operations, expanding delivery service categories, introducing a snack menu, driving traffic through social media interactions and lucky draw events, and converting online traffic to offline sales[29](index=29&type=chunk) - Carefully creating composite scenarios of "dining + entertainment + emotional experience," enhancing user identification and loyalty through incentive programs and imbuing the brand with social value (e.g., establishing a platform for young musicians)[29](index=29&type=chunk) [Industry Challenges and Group Response](index=14&type=section&id=%E8%A1%8C%E6%A5%AD%E6%8C%91%E6%88%B0%E8%88%87%E9%9B%86%E5%9C%98%E6%87%89%E5%B0%8D) The catering industry faces structural challenges including slowing revenue growth, declining profits, intensified competition, and rising operating costs, to which the Group will adhere to quality-first and innovation-driven principles, enhancing core competitiveness through refined operations and digital transformation to adapt to an industry ecosystem reshaped by intelligence and digitalization and diversified consumption scenarios - The catering industry faces a trend of "slowing revenue growth, declining profits, and intensified competition," with rising operating costs and increased market competition continuously testing operational capabilities[30](index=30&type=chunk) - The deep application of intelligence and digitalization is reshaping the industry ecosystem, bringing innovative upgrades from supply chain management to terminal service experience, while diversified consumption scenarios offer broader market space[30](index=30&type=chunk) - Xiabuxiabu will adhere to quality-first and innovation-driven principles, continuously enhancing core competitiveness through refined operations and digital transformation[30](index=30&type=chunk) Financial Performance The Group's financial performance in the first half of 2025 shows that despite an overall revenue decrease of 18.9%, pre-tax loss and loss for the period significantly narrowed due to strict cost control and efficiency improvements, with various expenses seeing notable reductions, while the Group maintains robust liquidity, actively invests in financial products to maximize returns on unutilized funds, and is undertaking a significant acquisition to achieve full ownership of a non-wholly owned subsidiary [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue decreased by **18.9%** year-on-year, but through cost optimization, raw materials and consumables, employee costs, property rentals, depreciation and amortization, and other expenses all saw significant reductions, leading to a substantial **71.6%** decrease in pre-tax loss and a **70.5%** decrease in loss for the period [Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) | Indicator | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,942,383 | 100.0 | 2,394,528 | 100.0 | (18.9) | | Other Income | 19,822 | 1.0 | 21,266 | 0.9 | (6.8) | | Raw Materials and Consumables Used | (641,386) | (33.0) | (827,496) | (34.6) | (22.5) | | Employee Costs | (666,466) | (34.3) | (814,137) | (34.0) | (18.1) | | Property Rentals and Related Expenses | (120,190) | (6.2) | (159,655) | (6.7) | (24.7) | | Utility Expenses | (75,399) | (3.9) | (90,066) | (3.8) | (16.3) | | Depreciation and Amortization | (317,713) | (16.4) | (399,790) | (16.7) | (20.5) | | Other Expenses | (160,832) | (8.3) | (185,428) | (7.7) | (13.3) | | Other Gains and Losses | (29,543) | (1.5) | (161,648) | (6.8) | (81.7) | | Finance Costs | (26,397) | (1.4) | (44,574) | (1.9) | (40.8) | | Loss Before Tax | (75,721) | (3.9) | (267,000) | (11.2) | (71.6) | | Income Tax Expense | (5,107) | (0.3) | (6,666) | (0.3) | (23.4) | | Loss for the Period | (80,828) | (4.2) | (273,666) | (11.4) | (70.5) | | Total Comprehensive Expense for the Period | (80,828) | (4.2) | (273,666) | (11.4) | (70.5) | - Loss for the period attributable to owners of the Company significantly narrowed to **RMB 84,079 thousand** from **RMB 272,820 thousand** in the same period last year[59](index=59&type=chunk) - Basic and diluted loss per share significantly improved to **RMB (8.01) cents** from **RMB (26.22) cents** in the same period last year[59](index=59&type=chunk) [Revenue](index=16&type=section&id=%E6%94%B6%E5%85%A5) The Group's total revenue for the first half of 2025 was **RMB 1,942.4 million**, a year-on-year decrease of **18.9%**, primarily due to fewer restaurants and consumer downgrading, with both Xiabuxiabu and Coucou business revenues declining, but seasoning product sales maintaining stable growth [Revenue by Brand](index=16&type=section&id=%E6%94%B6%E5%85%A5) | Business | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,942.4 | 2,394.5 | -18.9% | | Xiabuxiabu Business | 1,135.3 | 1,313.1 | -13.5% | | Coucou Business | 745.2 | 1,004.5 | -25.8% | | Seasoning Product Business | 47.2 | 45.0 | +4.8% | [Other Income](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) The Group's other income decreased by **6.8%** year-on-year to **RMB 19.8 million**, primarily due to a reduction in interest income [Other Income Change](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 19.8 | 21.3 | -6.8% | - The decrease in other income was mainly due to a reduction in interest income[34](index=34&type=chunk) [Raw Materials and Consumables](index=16&type=section&id=%E5%8E%9F%E6%9D%90%E6%96%99%E5%8F%8A%E8%80%97%E6%9D%90) Raw materials and consumables costs decreased by **22.5%** year-on-year to **RMB 641.4 million**, primarily benefiting from a net reduction in restaurant count, updated supplier base, online price comparison procedures, and improved procurement efficiency [Raw Materials and Consumables Cost Change](index=16&type=section&id=%E5%8E%9F%E6%9D%90%E6%96%99%E5%8F%8A%E8%80%97%E6%9D%90) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials and Consumables Cost | 641.4 | 827.5 | -22.5% | - The cost reduction was mainly due to: (i) a net decrease of **135 restaurants**; (ii) continuous maintenance and updating of the long-term strategic supplier base, increasing the number of suppliers; (iii) implementing online price comparison procedures to quickly and accurately select low-cost, high-quality suppliers from multiple dimensions, improving procurement efficiency and reducing unit purchase prices[35](index=35&type=chunk) [Employee Costs](index=16&type=section&id=%E5%83%B1%E5%93%A1%E6%88%90%E6%9C%AC) Employee costs decreased by **18.1%** year-on-year to **RMB 666.5 million**, primarily due to a reduction in employee numbers resulting from optimized restaurant layouts and the closure of inefficient restaurants, with the proportion of total employee costs to revenue remaining stable [Employee Cost Change](index=16&type=section&id=%E5%83%B1%E5%93%A1%E6%88%90%E6%9C%AC) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Employee Costs | 666.5 | 814.1 | -18.1% | | Number of Employees | 17,930 | 24,606 | -27.1% | | Employee Costs as % of Revenue | 34.3% | 34.0% | +0.3%p | - The decrease in employee costs was mainly due to the company optimizing its restaurant layout structure and closing inefficient restaurants, resulting in a net reduction of **135 restaurants** in employee numbers[36](index=36&type=chunk) [Property Rentals and Related Expenses](index=16&type=section&id=%E7%89%A9%E6%A5%AD%E7%A7%9F%E9%87%91%E5%8F%8A%E7%9B%B8%E9%97%9C%E9%96%8B%E6%94%AF) Property rentals and related expenses decreased by **24.7%** year-on-year to **RMB 120.2 million**, primarily due to the closure of some inefficient restaurants, with this expense as a percentage of revenue also falling from **6.7% to 6.2%** [Property Rentals and Related Expenses Change](index=16&type=section&id=%E7%89%A9%E6%A5%AD%E7%A7%9F%E9%87%91%E5%8F%8A%E7%9B%B8%E9%97%9C%E9%96%8B%E6%94%AF) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property Rentals and Related Expenses | 120.2 | 159.7 | -24.7% | | As % of Revenue | 6.2% | 6.7% | -0.5%p | - The reduction in expenses was mainly due to the closure of some inefficient restaurants in 2025, leading to a decrease in total rental costs[37](index=37&type=chunk) [Utility Expenses](index=17&type=section&id=%E5%85%AC%E7%94%A8%E4%BA%8B%E6%A5%AD%E8%B2%BB%E7%94%A8) Utility expenses decreased by **16.3%** year-on-year to **RMB 75.4 million**, primarily due to a reduction in restaurant count; despite the total expense decrease, its percentage of revenue slightly increased [Utility Expenses Change](index=17&type=section&id=%E5%85%AC%E7%94%A8%E4%BA%8B%E6%A5%AD%E8%B2%BB%E7%94%A8) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Utility Expenses | 75.4 | 90.1 | -16.3% | | As % of Revenue | 3.9% | 3.8% | +0.1%p | - The decrease in expenses was mainly due to a reduction of **135 restaurants** in the first half compared to the same period last year[38](index=38&type=chunk) [Depreciation and Amortization](index=17&type=section&id=%E6%8A%98%E8%88%8A%E5%8F%8A%E6%攤%E9%8A%B7) Depreciation and amortization expenses decreased by **20.5%** year-on-year to **RMB 317.7 million**, primarily due to a reduction in restaurant count and increased efforts in asset reuse, with this expense as a percentage of revenue slightly decreasing [Depreciation and Amortization Change](index=17&type=section&id=%E6%8A%98%E8%88%8A%E5%8F%8A%E6%攤%E9%8A%B7) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Depreciation and Amortization | 317.7 | 399.8 | -20.5% | | As % of Revenue | 16.4% | 16.7% | -0.3%p | - The decrease in expenses was mainly due to a reduction of **135 restaurants** in the first half compared to the same period last year and increased efforts in asset reuse[39](index=39&type=chunk) [Other Expenses](index=17&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) Other expenses decreased by **13.3%** year-on-year to **RMB 160.8 million**, primarily benefiting from significant reductions in logistics fees, professional service fees, and maintenance costs, reflecting the Group's effective control and management of operating costs [Other Expenses Change](index=17&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Other Expenses | 160.8 | 185.4 | -13.3% | | Logistics Fees | 13.3 | 18.7 | -28.9% | | Professional Service Fees | 15.6 | 21.5 | -27.3% | | Maintenance Fees | 5.3 | 7.9 | -33.1% | - Logistics fees decreased due to continuous upgrading of new logistics hubs and standardized processes, optimizing delivery route networks, and improving operational efficiency[40](index=40&type=chunk) - Amortization of professional service fees significantly decreased, and maintenance costs were effectively reduced through warranty services and insurance[40](index=40&type=chunk) [Other Gains and Losses](index=17&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) Other net losses significantly decreased by **81.7%** to **RMB 29.5 million**, primarily due to a substantial **64.1%** year-on-year reduction in asset impairment losses recognized for closed and continuously loss-making restaurants [Other Gains and Losses Change](index=17&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Net Losses | (29.5) | (161.6) | -81.7% | | Asset Impairment Losses Recognized | 73.0 | 203.0 | -64.1% | - The significant reduction in losses was mainly due to the Group optimizing its restaurant layout structure, leading to a substantial decrease in impairment losses recognized for restaurants expected to be closed or continuously loss-making[41](index=41&type=chunk) [Finance Costs](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs decreased by **40.8%** year-on-year to **RMB 26.4 million**, primarily due to a reduction in interest on lease liabilities [Finance Costs Change](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 26.4 | 44.6 | -40.8% | | Interest on Lease Liabilities | 22.3 | 35.9 | -37.9% | [Income Tax Expense](index=18&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by **23.4%** year-on-year to **RMB 5.1 million**, primarily due to profitability in some subsidiaries and a net decrease in deferred tax assets [Income Tax Expense Change](index=18&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 5.1 | 6.7 | -23.4% | - The decrease in income tax expense was due to (i) profitability in some subsidiaries; and (ii) a net decrease of **RMB 0.7 million** in deferred tax assets of some subsidiaries as of June 30, 2025, compared to the same period in 2024[43](index=43&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E4%BE%86%E6%BA%90) The Group primarily funds its operations with cash generated from operations and plans to finance its expansion and business operations through organic and sustainable development, as well as bank financing - The Group primarily funds its operations with cash generated from operations[44](index=44&type=chunk) - The Group intends to fund its expansion and business operations through organic and sustainable development and bank financing[44](index=44&type=chunk) [Bank Balances and Cash](index=18&type=section&id=%E9%8A%80%E8%A1%8C%E7%B5%90%E9%A4%98%E5%8F%8A%E7%8F%BE%E9%87%91) As of June 30, 2025, the Group's cash and cash equivalents were **RMB 313.2 million**, a decrease from the end of 2024, primarily denominated in RMB, and holding financial assets balance of **RMB 551.0 million** [Bank Balances and Cash](index=18&type=section&id=%E9%8A%80%E8%A1%8C%E7%B5%90%E9%A4%98%E5%8F%8A%E7%8F%BE%E9%87%91) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 313.2 | 362.7 | | Financial Assets Balance | 551.0 | - | - Cash and cash equivalents are primarily denominated in **RMB (95.0%)**, **HKD (3.0%)**, **USD (0.2%)**, **SGD (1.2%)**, and **NTD (0.5%)**[45](index=45&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=19&type=section&id=%E9%80%8F%E9%81%8E%E6%90%8D%E7%9B%8A%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group held **RMB 551.0 million** in financial products, primarily non-principal protected investments issued by banks and investment fund companies with no predetermined or guaranteed returns, and expected annual yields ranging from **2.0% to 4.8%**, with these investments for treasury management to maximize returns on unutilized funds and comply with internal risk management policies [Financial Assets at Fair Value Through Profit or Loss](index=19&type=section&id=%E9%80%8F%E9%81%8E%E6%90%8D%E7%9B%8A%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Total Financial Products | 551.0 | 587.0 | | Current Portion | 418.0 | 454.2 | | Non-current Portion | 133.0 | 132.8 | | Expected Annual Yield | 2.0%-4.8% | - | - Financial products are investments with no predetermined or guaranteed returns and are not principal protected, aimed at treasury management to maximize returns on unutilized funds, considering risk levels, investment returns, liquidity, and maturity periods[47](index=47&type=chunk) - The Directors believe that the Group bears relatively low risk for these financial products, and the terms and conditions of each subscription are fair and reasonable, aligning with the overall interests of the Company and its shareholders[47](index=47&type=chunk) [Borrowings](index=20&type=section&id=%E5%82%B5%E5%8B%99) As of June 30, 2025, the Group's short-term borrowings were **RMB 365.5 million**, a year-on-year decrease of **3.9%**, bearing fixed interest rates from **1.1% to 2.9%**, and expected to mature within one year [Short-term Borrowings Change](index=20&type=section&id=%E5%82%B5%E5%8B%99) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Short-term Borrowings | 365.5 | 380.4 | -3.9% | | Fixed Annual Interest Rate | 1.1%-2.9% | 0.46%-3.65% | - | [Gearing Ratio](index=20&type=section&id=%E6%A7%93%E6%A1%BF%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio was **47.8%** [Gearing Ratio](index=20&type=section&id=%E6%A7%93%E6%A1%BF%E6%AF%94%E7%8E%87) | Indicator | June 30, 2025 | | :--- | :--- | | Gearing Ratio | 47.8% | [Capital Expenditure](index=20&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) During the reporting period, the Group's capital expenditure was **RMB 44.6 million**, a significant year-on-year decrease of **68.4%**, primarily for opening new restaurants and renovating existing stores; **32 new restaurants** were opened in the first half [Capital Expenditure Change](index=20&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 44.6 | 140.9 | -68.4% | | Number of New Restaurants Opened | 32 | - | - | [Pledge of Assets](index=20&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged **RMB 57.5 million** in bank deposits as collateral for short-term borrowings - As of June 30, 2025, the Group pledged bank deposits of **RMB 57.5 million** as collateral for short-term borrowings[52](index=52&type=chunk) [Contingent Liabilities and Guarantees](index=20&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5%E5%8F%8A%E6%93%94%E4%BF%9D) As of June 30, 2025, the Group had no unrecorded significant contingent liabilities, guarantees, or lawsuits against it - As of June 30, 2025, the Group had no unrecorded significant contingent liabilities, guarantees, or lawsuits against it[53](index=53&type=chunk) [Major Investments Held, Major Acquisitions, and Future Plans for Major Investments](index=20&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) During the reporting period, the Group did not undertake any other major investments, acquisitions, or disposals, except for the acquisition of a **40% equity interest** in Xiabuxiabu (China) Food Holdings Co., Ltd., which will make the company a wholly-owned subsidiary and constitutes a discloseable and connected transaction requiring shareholder approval - The Group held no major investments and had no specific future plans for any major investments or acquisitions of major capital assets or other businesses, but will continue to identify new business development opportunities[54](index=54&type=chunk) - The Company entered into an agreement with Mr. He Guangqi, the controlling shareholder, to acquire a **40% equity interest** in Xiabuxiabu (China) Food Holdings Co., Ltd. for **RMB 89 million**, making it a wholly-owned subsidiary[55](index=55&type=chunk) - This acquisition constitutes a discloseable and connected transaction, subject to reporting, annual review, announcement, circular, and independent shareholder approval requirements, with an extraordinary general meeting scheduled for **September 12, 2025**, for approval[55](index=55&type=chunk)[56](index=56&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had **17,930 employees**, a decrease of approximately **27%** from the end of 2024, offering competitive remuneration and benefits, training programs, and discretionary performance bonuses to control employee turnover, with total employee costs decreasing by **18.1%** and accounting for approximately **34.3%** of total revenue [Employee Count and Costs](index=21&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) | Indicator | June 30, 2025 | December 31, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Employees | 17,930 | 24,606 | -27.1% | | Total Employee Costs (RMB millions) | 666.5 | 814.1 | -18.1% | | Employee Costs as % of Total Revenue | 34.3% | - | - | - The Group provides competitive remuneration and other benefits to its restaurant employees, offers training programs based on career development needs, and grants discretionary performance bonuses for achieving specific performance targets[57](index=57&type=chunk) [Condensed Consolidated Statement of Financial Position](index=23&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets and total liabilities both decreased, and net current liabilities narrowed, with property, plant and equipment and right-of-use assets within non-current assets decreasing, while inventory and financial assets at fair value through profit or loss within current assets also decreased, and total equity declined [Summary of Condensed Consolidated Statement of Financial Position](index=23&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 442,264 | 556,283 | | Right-of-use Assets | 748,515 | 879,313 | | Financial Assets at Fair Value Through Profit or Loss | 132,977 | 132,766 | | **Current Assets** | | | | Inventories | 216,262 | 289,220 | | Trade and Other Receivables and Prepayments | 353,430 | 314,518 | | Financial Assets at Fair Value Through Profit or Loss | 417,984 | 454,194 | | Bank Balances and Cash | 313,177 | 362,695 | | **Current Liabilities** | | | | Trade Payables | 183,507 | 235,850 | | Accruals and Other Payables | 407,000 | 486,152 | | Lease Liabilities | 224,650 | 292,355 | | Borrowings | 365,527 | 380,406 | | Contract Liabilities | 391,689 | 428,019 | | **Net Current Liabilities** | (151,197) | (303,941) | | **Total Assets Less Current Liabilities** | 1,422,875 | 1,522,851 | | **Non-current Liabilities** | | | | Lease Liabilities | 599,943 | 618,717 | | **Net Assets** | 765,497 | 844,890 | | **Total Equity** | 765,497 | 844,890 | - The Group's current liabilities exceeded its current assets by approximately **RMB 151,197 thousand**, but the Directors expect sufficient resources to continue operations[65](index=65&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=25&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, equity attributable to owners of the Company decreased from **RMB 774,087 thousand** at the beginning of the year to **RMB 691,443 thousand**, primarily due to a loss for the period of **RMB 84,079 thousand**, partially offset by the recognition of equity-settled share-based payments [Summary of Condensed Consolidated Statement of Changes in Equity](index=25&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) | Indicator | Balance at Jan 1, 2025 (RMB thousands) | Loss for the Period (RMB thousands) | Equity-settled Share-based Payments Recognized (RMB thousands) | Exercise of Restricted Share Unit Scheme (RMB thousands) | Balance at June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 774,087 | (84,079) | 1,435 | - | 691,443 | | Non-controlling Interests | 70,803 | 3,251 | - | - | 74,054 | | Total | 844,890 | (80,828) | 1,435 | - | 765,497 | [Condensed Consolidated Statement of Cash Flows](index=26&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash generated from operating activities was **RMB 195.5 million**, net cash outflow from investing activities was **RMB 18.2 million**, and net cash outflow from financing activities was **RMB 227.8 million**, resulting in a net decrease in cash and cash equivalents of **RMB 50.6 million** [Summary of Condensed Consolidated Statement of Cash Flows](index=26&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 195,495 | 371,657 | | Net Cash (Used in) Generated from Investing Activities | (18,243) | 15,667 | | Net Cash Used in Financing Activities | (227,803) | (206,505) | | Net (Decrease) Increase in Cash and Cash Equivalents | (50,551) | 180,819 | | Cash and Cash Equivalents at End of Period | 313,177 | 310,032 | - Net cash outflow from investing activities was primarily due to the purchase of financial assets at fair value through profit or loss (**RMB 1,206,009 thousand**) and the purchase of property, plant and equipment (**RMB 44,575 thousand**), partially offset by proceeds from the disposal of financial assets (**RMB 1,249,728 thousand**)[63](index=63&type=chunk) - Net cash outflow from financing activities was primarily due to repayment of borrowings (**RMB 349,468 thousand**) and lease liabilities (**RMB 209,643 thousand**), partially offset by new bank borrowings (**RMB 334,589 thousand**)[63](index=63&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=27&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation, significant accounting policies, composition and changes in various income and expense items, and key items in the statement of financial position and cash flow statement for the condensed consolidated financial statements, specifically covering operating segments, fair value measurement of financial instruments, equity-settled share-based payment transactions, and significant post-reporting period acquisitions [1. General Information and Basis of Preparation](index=27&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99%E5%8F%8A%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The Company, incorporated in the Cayman Islands, primarily operates Chinese hotpot restaurants in China, with its condensed consolidated financial statements presented in RMB and prepared in accordance with IAS 34 and the HKEX Listing Rules, and despite net current liabilities, the Directors expect the Group to have sufficient resources for continued operations - The Company primarily operates Chinese hotpot restaurants in China, with Mr. He Guangqi as the ultimate controlling party[64](index=64&type=chunk) - The condensed consolidated financial statements are presented in **RMB** and prepared in accordance with **IAS 34** and the **HKEX Listing Rules**[65](index=65&type=chunk) - As of June 30, 2025, the Group's current liabilities exceeded its current assets by approximately **RMB 151,197 thousand**, but the Directors expect the Group to have sufficient resources to continue operations[65](index=65&type=chunk) [2. Significant Accounting Policies](index=27&type=section&id=2.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared on a historical cost basis, except for financial instruments measured at fair value, with revisions to IFRS first applied in this interim period but without significant impact on financial position and performance - The condensed consolidated financial statements are prepared on a historical cost basis, except for financial instruments measured at fair value[66](index=66&type=chunk) - Revisions to IFRS (Amendments to IAS 21 Lack of Exchangeability) were first applied in this interim period but did not have a significant impact on the Group's financial position and performance for current and prior periods[67](index=67&type=chunk) [3. Revenue](index=28&type=section&id=3.%20%E6%94%B6%E5%85%A5) The Group's revenue primarily derives from restaurant operations (Xiabuxiabu and Coucou), sales of seasoning products, and other merchandise, with mainland China contributing the vast majority of revenue [Revenue by Type of Goods or Services and Geographical Market (H1 2025)](index=28&type=section&id=3.%20%E6%94%B6%E5%85%A5) | Type/Region | Xiabuxiabu (RMB thousands) | Coucou (RMB thousands) | Other (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | **Type of Goods or Services** | | | | | | Restaurant Operations | 1,132,151 | 745,141 | – | 1,877,292 | | Sales of Seasoning Products | – | – | 47,159 | 47,159 | | Sales of Other Merchandise | 3,148 | 19 | 14,765 | 17,932 | | **Total** | 1,135,299 | 745,160 | 61,924 | 1,942,383 | | **Geographical Market** | | | | | | Mainland China | 1,123,234 | 584,448 | 61,924 | 1,769,606 | | Outside Mainland China | 12,065 | 160,712 | – | 172,777 | | **Total** | 1,135,299 | 745,160 | 61,924 | 1,942,383 | [4. Operating Segments](index=29&type=section&id=4.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8) The Group's operating segments include Xiabuxiabu, Coucou, and other businesses (primarily seasoning products and supply chain circulation companies), with the Xiabuxiabu segment profitable and the Coucou segment recording a loss in the first half of 2025, and assets and liabilities mainly concentrated in these two reportable segments - The Group's reportable segments are **Xiabuxiabu** and **Coucou**, with other operating segments including seasoning products and other merchandise, and a recently established supply chain circulation company[70](index=70&type=chunk)[71](index=71&type=chunk) [Operating Segment Revenue and Performance Analysis (H1 2025)](index=29&type=section&id=4.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8) | Indicator | Xiabuxiabu (RMB thousands) | Coucou (RMB thousands) | Other (RMB thousands) | Consolidated (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | External Sales | 1,135,299 | 745,160 | 61,924 | 1,942,383 | | Segment Results | 55,603 | (54,588) | 5,406 | 6,421 | | Loss Before Tax | | | | (75,721) | [Operating Segment Assets and Liabilities Analysis (June 30, 2025)](index=32&type=section&id=4.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8) | Indicator | Xiabuxiabu (RMB thousands) | Coucou (RMB thousands) | Other Operating Segments (RMB thousands) | Consolidated (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 2,146,139 | 581,997 | 166,625 | 2,996,158 | | Total Liabilities | 1,436,350 | 357,576 | 436,735 | 2,230,661 | [5. Other Income](index=33&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) The Group's other income primarily includes interest income, government grants, delivery service income from takeaway orders, consumable income, and other miscellaneous income, totaling **RMB 19.8 million** in the first half of 2025, a decrease from the same period last year [Composition of Other Income (H1 2025)](index=33&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income | 5,085 | 8,314 | | Government Grants | 7,528 | 4,151 | | Delivery Service Income from Takeaway Orders | 847 | 617 | | Consumable Income | 1,755 | 2,786 | | Other | 4,607 | 5,398 | | Total | 19,822 | 21,266 | [6. Other Expenses](index=33&type=section&id=6.%20%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) The Group's other expenses primarily include delivery service fees, marketing expenses, professional service fees, royalty fees, logistics expenses, etc., totaling **RMB 160.8 million** in the first half of 2025, a decrease from the same period last year [Composition of Other Expenses (H1 2025)](index=33&type=section&id=6.%20%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Delivery Service Fees | 34,775 | 33,756 | | Marketing Expenses | 30,251 | 29,492 | | Professional Service Fees | 15,605 | 21,466 | | Royalty Fees | 19,971 | 24,053 | | Logistics Expenses | 13,320 | 18,738 | | Travel and Communication Expenses | 10,796 | 14,108 | | Office and Administrative Expenses | 16,240 | 16,973 | | Maintenance Fees | 5,302 | 7,925 | | Other | 14,572 | 18,917 | | Total | 160,832 | 185,428 | [7. Other Gains and Losses](index=34&type=section&id=7.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) The Group's other net losses for the first half of 2025 were **RMB 29.5 million**, a significant **81.7%** decrease from the same period last year, primarily due to a substantial reduction in impairment losses for property, plant and equipment and right-of-use assets, and an increase in reversal of impairment losses for other receivables [Composition of Other Gains and Losses (H1 2025)](index=34&type=section&id=7.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Loss on Disposal of Property, Plant and Equipment | (865) | (452) | | Gain on Lease Termination | 4,986 | 5,334 | | Gain on Remeasurement of Lease Liabilities | 6,520 | 24,373 | | Net Exchange Gain | 6,472 | 392 | | Loss on Closure of Restaurants | (924) | (7,308) | | Reversal of Impairment Loss on Other Receivables | 13,916 | 1,775 | | Impairment Loss on Rental Deposits | (2,402) | (21,223) | | Impairment Loss on Property, Plant and Equipment | (30,673) | (110,717) | | Impairment Loss on Right-of-use Assets | (39,916) | (71,095) | | Fair Value Change Gain on Financial Assets at Fair Value Through Profit or Loss | 13,452 | 17,299 | | Other | (109) | (26) | | Total | (29,543) | (161,648) | - The decrease in gain on remeasurement of lease liabilities was mainly due to a reduction in the remeasurement balance recognized in profit or loss after the carrying amount of right-of-use assets was adjusted to zero[79](index=79&type=chunk) [8. Finance Costs](index=34&type=section&id=8.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) The Group's finance costs for the first half of 2025 were **RMB 26.4 million**, a **40.8%** decrease from the same period last year, primarily due to reduced interest on lease liabilities and bank borrowings [Composition of Finance Costs (H1 2025)](index=34&type=section&id=8.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on Lease Liabilities | 22,287 | 35,887 | | Interest on Bank Borrowings | 3,281 | 7,420 | | Interest on Provisions | 829 | 1,267 | | Total | 26,397 | 44,574 | [9. Loss Before Tax](index=35&type=section&id=9.%20%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D) The Group's loss before tax for the period was calculated after deducting total depreciation and amortization, total property rentals and related expenses, and total employee costs, with these major cost items all decreasing in the first half of 2025 [Items Deducted in Loss Before Tax (H1 2025)](index=35&type=section&id=9.%20%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Depreciation and Amortization | 317,713 | 399,790 | | Total Property Rentals and Related Expenses | 120,190 | 159,655 | | Total Employee Costs | 666,466 | 814,137 | | Directors' Remuneration | 2,581 | 2,052 | [10. Income Tax Expense](index=35&type=section&id=10.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The Group's income tax expense for the first half of 2025 was **RMB 5.1 million**, a **23.4%** decrease from the same period last year, with no deferred tax recognized for temporary differences related to accumulated undistributed profits of Chinese subsidiaries, and no deferred tax assets recognized for deductible temporary differences and unused tax losses [Composition of Income Tax Expense (H1 2025)](index=35&type=section&id=10.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Tax | 4,411 | 1,725 | | Deferred Tax | 696 | 4,941 | | Total | 5,107 | 6,666 | - No deferred tax was recognized for temporary differences related to accumulated undistributed profits of Chinese subsidiaries amounting to **RMB 1,198 million**, as the Group controls the timing of reversal and the differences are unlikely to reverse in the foreseeable future[84](index=84&type=chunk) - Deferred tax assets for deductible temporary differences of **RMB 733,331 thousand** and unused tax losses of **RMB 1,022,447 thousand** were not recognized, as it is not probable that taxable profits will be available against which the deductible temporary differences and unused tax losses can be utilized[84](index=84&type=chunk)[85](index=85&type=chunk) [11. Dividends](index=36&type=section&id=11.%20%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[86](index=86&type=chunk) [12. Loss Per Share](index=36&type=section&id=12.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, the loss for the period attributable to owners of the Company was **RMB 84,079 thousand**, with both basic and diluted loss per share at **RMB (8.01) cents**, and the exercise of share options and restricted shares was not assumed in calculating diluted loss per share, as it would result in a decrease in loss per share [Loss Per Share Calculation](index=36&type=section&id=12.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company | (84,079) | (272,820) | | Weighted Average Number of Ordinary Shares for Basic Loss Per Share | 1,049,909 | 1,040,631 | | Basic Loss Per Share (RMB cents) | (8.01) | (26.22) | | Diluted Loss Per Share (RMB cents) | (8.01) | (26.22) | - The exercise of the Company's share options and restricted shares was not assumed in calculating diluted loss per share because their exercise would result in a decrease in loss per share[88](index=88&type=chunk) [13. Changes in Property, Plant and Equipment and Right-of-Use Assets](index=37&type=section&id=13.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E4%BB%A5%E5%8F%8A%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2%E7%9A%84%E8%AE%8A%E5%8B%95) In the first half of 2025, additions to property, plant and equipment amounted to **RMB 31,134 thousand**, and new lease agreements resulted in the recognition of right-of-use assets of **RMB 120,656 thousand**, with the Group assessing impairment for assets of some restaurants, recognizing impairment losses of **RMB 30,673 thousand** for property, plant and equipment and **RMB 39,916 thousand** for right-of-use assets, a significant decrease from the same period last year [Changes in Property, Plant and Equipment and Right-of-Use Assets](index=37&type=section&id=13.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E4%BB%A5%E5%8F%8A%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2%E7%9A%84%E8%AE%8A%E5%8B%95) | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Additions to Property, Plant and Equipment | 31,134 | 97,002 | | Right-of-Use Assets Recognized | 120,656 | 177,811 | | Impairment Loss on Property, Plant and Equipment | (30,673) | (110,717) | | Impairment Loss on Right-of-Use Assets | (39,916) | (71,095) | - Impairment assessments were based on cash flow forecasts from management-approved financial budgets, using pre-tax discount rates ranging from **12.14% to 14.07%** (2024: **13.46% to 14.25%**)[91](index=91&type=chunk) [14. Inventories](index=38&type=section&id=14.%20%E5%AD%98%E8%B2%A8) As of June 30, 2025, the Group's total inventories amounted to **RMB 216,262 thousand**, a decrease from the end of 2024, primarily comprising food and beverages, other materials, and consumables [Composition of Inventories](index=38&type=section&id=14.%20%E5%AD%98%E8%B2%A8) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Food and Beverages | 197,099 | 264,348 | | Other Materials | 14,240 | 17,509 | | Consumables | 4,923 | 7,363 | | Total | 216,262 | 289,220 | [15. Trade and Other Receivables and Prepayments](index=39&type=section&id=15.%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E8%B3%A6%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E4%BB%A5%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's total trade and other receivables and prepayments amounted to **RMB 353,430 thousand**, an increase from the end of 2024, with the average credit period for trade receivables being **1 to 30 days** [Composition of Trade and Other Receivables and Prepayments](index=39&type=section&id=15.%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E8%B3%A6%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E4%BB%A5%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 19,659 | 29,250 | | Prepaid Operating Expenses | 30,108 | 29,324 | | Prepayments to Suppliers | 23,972 | 1,297 | | Recoverable Input VAT | 259,677 | 237,021 | | Other Receivables | 35,505 | 47,238 | | Less: Provision for Credit Losses | (16,247) | (30,368) | | Total | 353,430 | 314,518 | - The Group grants its trade customers an average credit period of **1 to 30 days**[94](index=94&type=chunk) [Aging Analysis of Trade Receivables (June 30, 2025)](index=39&type=section&id=15.%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E8%B3%A6%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E4%BB%A5%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 Days | 18,533 | 22,943 | | 31 to 90 Days | 886 | 5,784 | | 91 to 180 Days | 240 | 523 | | Total | 19,659 | 29,250 | [16. Financial Assets at Fair Value Through Profit or Loss](index=40&type=section&id=16.%20%E9%80%8F%E9%81%8E%E6%90%8D%E7%9B%8A%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group held **RMB 550,961 thousand** in financial products, primarily non-principal protected investments issued by banks and investment fund companies with no predetermined or guaranteed returns, with these financial assets having expected rates of return, and changes in their fair value are recognized in other gains and losses [Financial Assets at Fair Value Through Profit or Loss](index=40&type=section&id=16.%20%E9%80%8F%E9%81%8E%E6%90%8D%E7%9B%8A%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Financial Products | 550,961 | 586,960 | | Current Portion | 417,984 | 454,194 | | Non-current Portion | 132,977 | 132,766 | - Financial products are investments with no predetermined or guaranteed returns and are not principal protected, with expected rates of return depending on the market prices of the underlying financial instruments[96](index=96&type=chunk) - Financial products classified as non-current assets have maturity dates of **July 13, 2028**, and **September 12, 2028**[96](index=96&type=chunk) [17. Trade Payables](index=40&type=section&id=17.%20%E8%B2%A3%E6%98%93%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE) As of June 30, 2025, the Group's total trade payables amounted to **RMB 183,507 thousand**, a decrease from the end of 2024; most payables are due within **60 days** [Aging Analysis of Trade Payables (June 30, 2025)](index=40&type=section&id=17.%20%E8%B2%A3%E6%98%93%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 60 Days | 177,511 | 227,575 | | 61 to 180 Days | 3,109 | 2,992 | | 181 Days to 1 Year | 2,887 | 5,283 | | Total | 183,507 | 235,850 | [18. Lease Liabilities](index=41&type=section&id=18.%20%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group's total lease liabilities amounted to **RMB 824,593 thousand**, of which **RMB 224,650 thousand** will be settled within one year, and the weighted average incremental borrowing rate applied to lease liabilities ranges from **3.60% to 5.64%** [Maturity Analysis of Lease Liabilities](index=41&type=section&id=18.%20%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within One Year | 224,650 | 292,355 | | Over One Year but Not More Than Two Years | 241,565 | 293,476 | | Over Two Years but Not More Than Five Years | 341,795 | 312,759 | | Over Five Years | 16,583 | 12,482 | | Total | 824,593 | 911,072 | | Under Current Liabilities | (224,650) | (292,355) | | Under Non-current Liabilities | 599,943 | 618,717 | - The weighted average incremental borrowing rate applied to lease liabilities ranges from **3.60% to 5.64%** (December 31, 2024: **3.60% to 6.16%**)[99](index=99&type=chunk) [Lease Liabilities Denominated in Non-Functional Currencies](index=41&type=section&id=18.%20%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) | Currency | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | SGD | 2,295 | 2,893 | | HKD | 82,962 | 94,683 | [19. Borrowings](index=42&type=section&id=19.%20%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total borrowings amounted to **RMB 365,527 thousand**, including unsecured and secured borrowings, with bank borrowings bearing fixed annual interest rates ranging from **1.10% to 2.90%**, and some borrowings collateralized by bank deposits [Composition of Borrowings](index=42&type=section&id=19.%20%E5%80%9F%E6%AC%BE) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Unsecured | 257,378 | 175,144 | | Secured | 108,149 | 205,262 | | Total | 365,527 | 380,406 | - Bank borrowings bear fixed annual interest rates ranging from **1.10% to 2.90%** (December 31, 2024: **0.46% to 3.65%**)[101](index=101&t

Company Information and Report Overview [Company Basic Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) AB BUILDERS GROUP LIMITED, a company incorporated in the Cayman Islands with stock code 01615 and listed on the Main Board of SEHK, presents its unaudited interim results for the six months ended June 30, 2025 - Company name: AB BUILDERS GROUP LIMITED (奧邦建築集團有限公司), stock code: **01615**[2](index=2&type=chunk) - The company was incorporated in the Cayman Islands, and its shares were listed on the Main Board of SEHK on September 10, 2018[2](index=2&type=chunk)[9](index=9&type=chunk) - This announcement is for the unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Report Publication Statement](index=1&type=section&id=%E6%8A%A5%E5%91%8A%E5%8F%91%E5%B8%83%E5%A3%B0%E6%98%8E) This interim results announcement is available on the SEHK and company websites, with the full interim report to be dispatched to shareholders and published in due course - The results announcement is available on the SEHK website (www.hkexnews.hk) and the company's website (www.abbuildersgroup.com)[4](index=4&type=chunk) - The company's 2025 interim report will be dispatched to shareholders and published in due course[4](index=4&type=chunk) [Board of Directors](index=1&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%88%90%E5%91%98) As of the announcement date, the Board comprises five executive directors and three independent non-executive directors, with Mr Liu Chao Sheng as Chairman and Executive Director - The Board of Directors includes five executive directors: Mr Liu Chao Sheng (Chairman), Ms Liu Qiu Yu, Mr An Jia Wei, Mr Zheng Yi Wei, and Mr Ye Jian Hua[5](index=5&type=chunk) - The Board of Directors includes three independent non-executive directors: Mr Zhu Yi Peng, Mr Au Yeung Wai Lap, and Mr Choi Wai Shek[5](index=5&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue significantly increased by **190.0%** to **MOP 170,834 thousand**, but profit for the period decreased by **80.8%** to **MOP 476 thousand** due to lower gross profit and other income, leading to a substantial reduction in basic earnings per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (MOP thousand) | Indicator | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Revenue | 170,834 | 58,923 | | Cost of Sales | (160,661) | (47,072) | | Gross Profit | 10,173 | 11,851 | | Other Income | 2,892 | 6,665 | | Other Gains and Losses | 942 | (1,000) | | Impairment Loss under ECL Model (net of reversal) | 740 | (1,243) | | Administrative Expenses | (13,513) | (13,456) | | Finance Costs | (396) | (397) | | Profit Before Tax | 838 | 2,420 | | Income Tax (Expense) Credit | (362) | 62 | | **Profit for the Period** | **476** | **2,482** | | Profit for the Period Attributable to Owners of the Company | 314 | 3,827 | | Basic Earnings Per Share (MOP cents) | 0.05 | 0.64 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets and net assets both slightly increased, with significant rises in trade and other receivables and bank balances and cash within current assets, and an increase in trade and other payables within current liabilities, leading to an improved gearing ratio Condensed Consolidated Statement of Financial Position (MOP thousand) | Indicator | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Non-current Assets | 85,923 | 83,020 | | Current Assets | 237,692 | 223,640 | | Current Liabilities | 127,387 | 110,645 | | Net Current Assets | 110,305 | 112,995 | | Net Assets | 195,045 | 194,333 | | Equity Attributable to Owners of the Company | 212,193 | 211,643 | - Trade and other receivables increased by **61.0%** from **MOP 44,842 thousand** as of December 31, 2024, to **MOP 72,195 thousand** as of June 30, 2025[7](index=7&type=chunk) - Bank balances and cash increased by **66.3%** from **MOP 44,581 thousand** as of December 31, 2024, to **MOP 74,129 thousand** as of June 30, 2025[7](index=7&type=chunk) - Trade and other payables increased by **26.4%** from **MOP 91,042 thousand** as of December 31, 2024, to **MOP 115,106 thousand** as of June 30, 2025[7](index=7&type=chunk) Notes to the Condensed Consolidated Financial Statements [General Information and Basis of Preparation](index=5&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99%E5%8F%8A%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86) The Group primarily provides construction services and sells construction materials, with its condensed consolidated financial statements prepared in accordance with IAS 34 and SEHK Listing Rules, using MOP as the presentation and functional currency - The company is an investment holding company, and its subsidiaries are primarily engaged in providing construction services and selling construction materials[9](index=9&type=chunk) - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the SEHK Listing Rules[9](index=9&type=chunk) - The company's presentation and functional currency is MOP[10](index=10&type=chunk) [Accounting Policies](index=5&type=section&id=%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value, with the first-time application of IFRS accounting standards (amendments) and a new accounting policy for goodwill during the period - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[11](index=11&type=chunk) [Application of Amendments to IFRS Accounting Standards](index=5&type=section&id=%E5%BA%94%E7%94%A8%E5%9B%BD%E9%99%85%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E5%87%86%E5%88%99%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%EF%BC%88%E4%BF%AE%E8%AE%A2%E6%9C%AC%EF%BC%89) The Group first applied amendments to IFRS accounting standards, including IAS 21 (Amendments) "Lack of Exchangeability," during this interim period, which had no significant impact on its financial position or performance - The Group has first applied amendments to IFRS accounting standards, such as IAS 21 (Amendments) "Lack of Exchangeability"[12](index=12&type=chunk) - These amendments had no significant impact on the Group's financial position and performance during the current and prior periods[12](index=12&type=chunk) [New Significant Accounting Policy Information: Goodwill](index=5&type=section&id=%E6%96%B0%E8%AE%A2%E9%87%8D%E5%A4%A7%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E8%B5%84%E6%96%99%EF%BC%9A%E5%95%86%E8%AA%89) Goodwill arising from business acquisitions is recognized at cost less accumulated impairment losses and allocated to cash-generating units for annual or more frequent impairment testing, with impairment losses first allocated to reduce the carrying amount of goodwill - Goodwill arising from business acquisitions is recognized at cost (determined at the acquisition date) less any accumulated impairment losses[13](index=13&type=chunk) - Goodwill is allocated to each cash-generating unit for impairment testing, performed annually or more frequently if there are indications of impairment[13](index=13&type=chunk)[14](index=14&type=chunk) [Revenue](index=6&type=section&id=%E6%94%B6%E7%9B%8A) The Group's revenue primarily derives from construction contracts for renovation works and sales of construction materials, with **MOP 167,117 thousand** from renovation works and **MOP 3,717 thousand** from material sales for the six months ended June 30, 2025, and **MOP 114,280 thousand** in renovation work revenue expected to be recognized in the future - Revenue refers to the total amount received and receivable by the Group from providing construction contracts for renovation works and selling construction materials to its customers[15](index=15&type=chunk) Revenue by Source (MOP thousand) | Revenue Source | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Revenue from Construction Contracts for Renovation Works | 167,117 | 58,923 | | Revenue from Sales of Construction Materials | 3,717 | — | | **Total** | **170,834** | **58,923** | - As of June 30, 2025, the total transaction price allocated to renovation work contracts not yet satisfied (or partially satisfied) was **MOP 114,280 thousand**, expected to be recognized as revenue in 2025 and 2026[19](index=19&type=chunk)[20](index=20&type=chunk) [Segment Information](index=7&type=section&id=%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) Effective January 1, 2025, the Group adjusted its operating segment reporting, consolidating renovation and structural engineering into a single "Construction Services" reportable segment, while other businesses like construction material sales and air purification are classified as "Others," with segment revenue and results primarily driven by construction services - Effective January 1, 2025, management changed the presentation of information reported to the chief operating decision-maker and updated segment reporting to align with this change[22](index=22&type=chunk) - The Group's sole reportable segment under IFRS 8 is Construction Services, which includes the former renovation works and structural engineering operating segments[22](index=22&type=chunk)[23](index=23&type=chunk) - Sales of construction materials and air purification business/systems are classified as "Others" as they do not meet the quantitative thresholds for reportable segments[23](index=23&type=chunk) [Changes in Operating Segments](index=7&type=section&id=%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E5%8F%98%E6%9B%B4) Effective January 1, 2025, the Group merged its former renovation and structural engineering segments into a single "Construction Services" reportable segment, with construction material sales and air purification businesses categorized under "Others" - Effective January 1, 2025, management changed the presentation of information reported to the chief operating decision-maker and updated segment reporting to align with this change[22](index=22&type=chunk) - The latest Construction Services reportable segment now includes the former renovation works and structural engineering operating segments[22](index=22&type=chunk) - Sales of construction materials and air purification business/systems are classified as "Others" as they do not meet the quantitative thresholds for reportable segments[23](index=23&type=chunk) [Segment Revenue and Results](index=8&type=section&id=%E5%88%86%E9%83%A8%E6%94%B6%E7%9B%8A%E5%8F%8A%E4%B8%9A%E7%BB%A9) For the six months ended June 30, 2025, the Construction Services segment contributed **MOP 167,117 thousand** in revenue and **MOP 9,865 thousand** in segment results, while the "Others" segment (primarily construction material sales) contributed **MOP 3,717 thousand** in revenue and **MOP 308 thousand** in segment results Segment Revenue and Results (MOP thousand) | Segment | For the period ended June 30, 2025 Revenue (MOP thousand) | For the period ended June 30, 2025 Results (MOP thousand) | For the period ended June 30, 2024 Revenue (MOP thousand) | For the period ended June 30, 2024 Results (MOP thousand) | | :--- | :--- | :--- | :--- | :--- | | Construction Services | 167,117 | 9,865 | 58,923 | 12,061 | | Others | 3,717 | 308 | — | (210) | | **Total** | **170,834** | **10,173** | **58,923** | **11,851** | [Geographical Information](index=9&type=section&id=%E5%9C%B0%E5%9F%9F%E8%B5%84%E6%96%99) The Group's revenue from external customers primarily originated from Macau (**MOP 134,297 thousand**) and Hong Kong (**MOP 36,537 thousand**), with non-current assets also predominantly concentrated in Macau Geographical Information (MOP thousand) | Geographical Area | For the six months ended June 30, 2025 Revenue from External Customers (MOP thousand) | For the six months ended June 30, 2024 Revenue from External Customers (MOP thousand) | As of June 30, 2025 Non-current Assets (MOP thousand) | As of December 31, 2024 Non-current Assets (MOP thousand) | | :--- | :--- | :--- | :--- | :--- | | Macau | 134,297 | 33,563 | 34,459 | 35,152 | | Hong Kong | 36,537 | 25,360 | 2,914 | 2,477 | | China | — | — | 2,029 | 1,838 | | **Total** | **170,834** | **58,923** | **39,402** | **39,467** | [Other Income](index=9&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, other income significantly decreased to **MOP 2,892 thousand** from **MOP 6,665 thousand** in the prior year, mainly due to the absence of **MOP 2,271 thousand** in construction project insurance claim compensation income recognized in the previous period Other Income (MOP thousand) | Item | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Bank Interest Income | 2,564 | 3,973 | | Compensation Income | — | 2,271 | | Others | 328 | 421 | | **Total** | **2,892** | **6,665** | - The decrease in other income was primarily due to the absence of **MOP 2,271,000** in compensation income (insurance claims) from construction projects recognized in the corresponding period of 2024[27](index=27&type=chunk) [Income Tax (Expense) Credit](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%EF%BC%88%E5%BC%80%E6%94%AF%EF%BC%89%E6%8A%B5%E5%85%8D) The Group recorded an income tax expense of **MOP 362 thousand** in the first half of 2025, contrasting with an income tax credit of **MOP 62 thousand** in the prior year, mainly due to an increase in Macau Complementary Income Tax Income Tax (Expense) Credit (MOP thousand) | Tax Type | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Macau Complementary Income Tax | (459) | — | | PRC Enterprise Income Tax | — | (36) | | Deferred Tax Credit | 97 | 98 | | **Income Tax (Expense) Credit** | **(362)** | **62** | [Composition of Profit for the Period](index=10&type=section&id=%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9%E6%9E%84%E6%88%90) Profit for the period was achieved after deducting various expenses, with a significant increase in the cost of construction contracts for renovation works, and notably, a reversal of provision for onerous contracts of **MOP 405 thousand** was recognized in the current period Expenses (MOP thousand) | Expense Item | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Cost of Construction Contracts for Renovation Works Recognized as Expense | 157,252 | 46,862 | | Cost of Inventories Recognized as Expense | — | 210 | | Depreciation of Property, Plant and Equipment | 726 | 760 | | Depreciation of Right-of-Use Assets | 378 | 34 | | Amortisation of Intangible Assets | 389 | 393 | | Expenses Relating to Short-term Leases | 166 | 750 | - For the six months ended June 30, 2025, a reversal of provision for onerous contracts for renovation works of **MOP 405,000** was recognized[29](index=29&type=chunk) [Dividends](index=10&type=section&id=%E8%82%A1%E6%81%AF) No dividends were paid, declared, or proposed by the company during either of the interim periods - No dividends were paid, declared, or proposed during the two interim periods[30](index=30&type=chunk) [Earnings Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, profit for the period attributable to owners of the company was **MOP 314 thousand**, leading to a significant decrease in basic and diluted earnings per share to **MOP 0.05 cents**, compared to **MOP 0.64 cents** in the prior year Earnings Per Share | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (MOP thousand) | 314 | 3,827 | | Weighted Average Number of Ordinary Shares (thousand shares) | 600,000 | 600,000 | | Basic Earnings Per Share (MOP cents) | 0.05 | 0.64 | | Diluted Earnings Per Share (MOP cents) | 0.05 | 0.64 | - Diluted earnings per share were not assumed to be exercised for all share options as the exercise price was higher than the average market price of the shares[31](index=31&type=chunk) [Property, Plant and Equipment and Right-of-Use Assets](index=11&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87%E4%BB%A5%E5%8F%8A%E4%BD%BF%E7%94%A8%E6%9D%83%E8%B5%84%E4%BA%A7) For the six months ended June 30, 2025, the Group did not enter into new lease agreements, thus recognizing no new right-of-use assets or lease liabilities, in contrast to the prior year - For the six months ended June 30, 2025, the Group did not enter into new lease agreements, nor did it recognize new right-of-use assets and lease liabilities[32](index=32&type=chunk) - For the six months ended June 30, 2024, the Group entered into new lease agreements, recognizing right-of-use assets and lease liabilities of **MOP 1,949,000** each[32](index=32&type=chunk) [Goodwill](index=11&type=section&id=%E5%95%86%E8%AA%89) As of June 30, 2025, the Group recognized goodwill of **MOP 1,462 thousand** arising from the acquisition of a subsidiary, with its carrying amount consistent with its cost Goodwill (MOP thousand) | Item | MOP thousand | | :--- | :--- | | As of December 31, 2024 (audited) | — | | Arising from Acquisition of a Subsidiary | 1,462 | | **As of June 30, 2025 (unaudited)** | **1,462** | [Trade and Other Receivables](index=11&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other receivables increased to **MOP 72,195 thousand**, a **61.0%** increase from the end of 2024, with a significant rise in trade receivables (net of loss allowance) and a higher proportion of receivables aged 1 to 30 days Trade and Other Receivables (MOP thousand) | Item | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Trade Receivables (net of loss allowance) | 55,332 | 25,103 | | Advances to Subcontractors and Suppliers | 5,350 | 7,776 | | Other Receivables, Prepayments and Deposits | 11,513 | 9,902 | | **Total Trade and Other Receivables** | **72,195** | **44,842** | Trade Receivables Ageing Analysis (MOP thousand) | Ageing | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | 1 to 30 days | 49,989 | 932 | | 31 to 60 days | 3,274 | 14,862 | | 61 to 90 days | — | 6,407 | | Over 90 days | 2,069 | 2,902 | | **Total** | **55,332** | **25,103** | - The Group generally allows customers a credit period of **30 days**[36](index=36&type=chunk) [Contract Assets](index=12&type=section&id=%E5%90%88%E7%BA%A6%E8%B5%84%E4%BA%A7) As of June 30, 2025, contract assets significantly decreased by **69.3%** to **MOP 19,025 thousand** from the end of 2024, including retention receivables of **MOP 13,074 thousand** Contract Assets (MOP thousand) | Item | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Contract Assets | 19,025 | 62,066 | - Contract assets include retention receivables from customers for contract works of **MOP 13,074,000**[37](index=37&type=chunk) - Retention receivables are typically **10%** of certified amounts payable, with **50%** recovered upon project completion and the remaining **50%** after the warranty period[38](index=38&type=chunk) [Impairment Loss under Expected Credit Loss Model](index=13&type=section&id=%E9%A2%84%E6%9C%9F%E4%BF%A1%E8%B4%B7%E4%BA%8F%E6%8D%9F%E6%A8%A1%E5%9E%8B%E4%B8%8B%E7%9A%84%E5%87%8F%E5%80%BC%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, the Group recorded a net reversal of impairment loss of **MOP 740 thousand**, a significant improvement compared to an impairment loss of **MOP 1,243 thousand** in the prior year, primarily due to the reversal of impairment for contract assets Impairment Loss under Expected Credit Loss Model (MOP thousand) | Item | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Trade Receivables | 112 | 1,335 | | Other Receivables | (2) | — | | Contract Assets | (847) | 13 | | Other Financial Assets | (3) | (105) | | **Total** | **(740)** | **1,243** | - During the interim period, the Group recognized impairment provisions of **MOP 317,000** and reversed impairment provisions of **MOP 1,057,000**[39](index=39&type=chunk)[40](index=40&type=chunk) [Trade and Other Payables](index=14&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other payables increased to **MOP 115,106 thousand**, a **26.4%** increase from the end of 2024, with both trade payables and retention payables showing increases Trade and Other Payables (MOP thousand) | Item | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Trade Payables | 45,450 | 26,117 | | Retention Payables | 31,796 | 25,443 | | Accrued Contract Costs | 27,849 | 29,595 | | Provision for Onerous Contracts | 1,088 | 1,493 | | **Total Trade and Other Payables** | **115,106** | **91,042** | Trade Payables Ageing Analysis (MOP thousand) | Ageing | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | 1 to 30 days | 41,232 | 22,226 | | Over 60 days | 4,218 | 3,891 | | **Total** | **45,450** | **26,117** | - The credit period for trade purchases is **7 to 60 days**[41](index=41&type=chunk) [Share Capital](index=14&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged at **600,000 thousand shares**, with a share capital amount of **MOP 6,189 thousand** Share Capital (MOP thousand) | Item | Number of Shares (thousand shares) | Share Capital (MOP thousand) | | :--- | :--- | :--- | | Issued and Fully Paid Share Capital (as of June 30, 2025) | 600,000 | 6,189 | | Authorised Share Capital (as of June 30, 2025) | 10,000,000 | 103,150 | Management Discussion and Analysis [Business Review](index=15&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) Despite global economic challenges, the Group achieved a **190.0%** revenue growth to **MOP 170.8 million** in the first half of 2025, primarily driven by renovation projects and newly expanded construction material trading, while gross profit margin declined due to lower-margin projects, and the Group also entered the financial services sector through an acquisition - The Group recorded revenue of approximately **MOP 170.8 million** in the first half of 2025, representing a year-on-year increase of approximately **190.0%**[46](index=46&type=chunk) - Revenue growth was primarily attributable to the successful execution of renovation projects and the expansion of the construction material trading business[46](index=46&type=chunk) - The core construction services segment contributed **MOP 167.1 million**, accounting for **97.8%** of total revenue[46](index=46&type=chunk) - The successful launch of the construction material trading business contributed **MOP 3.7 million** in revenue, marking strategic diversification[47](index=47&type=chunk) - Gross profit margin decreased from **20.1%** last year to **6.0%**, mainly due to the completion of certain low-margin projects and subsequent additional orders[47](index=47&type=chunk) - The acquisition of a Hong Kong company holding SFC Type 4 and Type 9 licenses was completed, entering the financial services sector[47](index=47&type=chunk) [Prospects and Outlook](index=15&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E5%B1%95%E6%9C%9B) The Group maintains cautious optimism for the future, anticipating construction and renovation opportunities from Macau's economic recovery, planning to expand its construction material trading business for vertical integration, actively developing financial services capabilities, and pursuing sustainable growth through strategic collaborations and market expansion - Macau's continued economic recovery and investments by major integrated resort operators will create robust potential construction and renovation opportunities for the Group[48](index=48&type=chunk)[49](index=49&type=chunk) - Plans to expand the construction material trading business to enhance overall project profitability through vertical integration of material supply and construction services[49](index=49&type=chunk) - Actively developing financial services capabilities, utilizing Type 4 and Type 9 licenses to provide securities advisory and asset management services, opening new revenue streams[49](index=49&type=chunk) - Will continue to evaluate strategic acquisition opportunities and partnerships, and expand its market presence in Macau, Hong Kong, the Greater Bay Area, and the Asia-Pacific region[49](index=49&type=chunk) [Financial Review](index=16&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%BE) This section provides a detailed review of the Group's financial performance in the first half of 2025, including significant revenue growth, a notable decline in gross profit margin, reduced other income, improved impairment losses, and a decrease in profit for the period, along with their primary causes [Revenue](index=16&type=section&id=%E6%94%B6%E7%9B%8A) The Group's revenue for the first half of 2025 significantly increased by **190.0%** year-on-year to **MOP 170.8 million**, primarily driven by a **183.6%** increase in renovation project revenue and a **MOP 3.7 million** contribution from construction material sales Revenue by Source (MOP thousand) | Revenue Source | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Renovation Works | 167,117 | 58,923 | 183.6% | | Others (Construction Material Sales) | 3,717 | — | 100% (New Business) | | **Total** | **170,834** | **58,923** | **190.0%** | - The increase in revenue was mainly due to an increase of approximately **MOP 108.2 million** or **183.6%** from renovation projects[50](index=50&type=chunk) - The expansion of the Macau construction material sales business contributed approximately **MOP 3.7 million** in revenue[50](index=50&type=chunk) [Gross Profit and Gross Profit Margin](index=17&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) The Group's gross profit decreased by approximately **MOP 1.7 million** year-on-year, with the gross profit margin significantly declining by **14.1 percentage points** to **6.0%** from **20.1%**, primarily due to reduced gross profit from completed renovation projects, partially offset by gross profit from construction material sales Gross Profit and Gross Profit Margin (MOP thousand) | Revenue Type | For the six months ended June 30, 2025 Gross Profit (MOP thousand) | For the six months ended June 30, 2025 Gross Profit Margin (%) | For the six months ended June 30, 2024 Gross Profit (MOP thousand) | For the six months ended June 30, 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Renovation Works | 9,865 | 5.9 | 12,061 | 20.5 | | Others | 308 | 8.3 | (210) | — | | **Total** | **10,173** | **6.0** | **11,851** | **20.1** | - Gross profit margin decreased by **14.1 percentage points** from approximately **20.1%** in the corresponding period of 2024 to **6.0%** in the corresponding period of 2025[51](index=51&type=chunk) - The decrease in gross profit margin was mainly due to a reduction of approximately **MOP 2.2 million** in gross profit recognized from completed renovation projects[51](index=51&type=chunk) [Other Income](index=17&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income decreased from **MOP 6.7 million** in the prior year to **MOP 2.9 million** in the current period, primarily because **MOP 2.271 million** in insurance claim compensation income recognized in the prior year did not recur - For the six months ended June 30, 2025, other income was approximately **MOP 2.9 million**, mainly comprising bank interest income of approximately **MOP 2.6 million**[52](index=52&type=chunk) - The decrease in other income was primarily due to the absence of **MOP 2.271 million** in compensation income (insurance claims) recognized in the corresponding period of 2024[52](index=52&type=chunk) [Other Gains and Losses](index=17&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E4%BA%8F%E6%8D%9F) The current period recorded other gains of approximately **MOP 0.9 million**, contrasting with other losses of approximately **MOP 1.0 million** in the prior year, mainly influenced by net exchange gains and fair value changes of financial assets at fair value through profit or loss - For the six months ended June 30, 2025, other gains were approximately **MOP 0.9 million**, mainly including net exchange gains and fair value changes of financial assets at fair value through profit or loss[53](index=53&type=chunk) - For the six months ended June 30, 2024, other losses were approximately **MOP 1.0 million**, mainly including net exchange losses and fair value changes of financial assets at fair value through profit or loss[53](index=53&type=chunk) [Impairment Loss under Expected Credit Loss Model](index=18&type=section&id=%E9%A2%84%E6%9C%9F%E4%BF%A1%E8%B4%B7%E4%BA%8F%E6%8D%9F%E6%A8%A1%E5%9E%8B%E4%B8%8B%E7%9A%84%E5%87%8F%E5%80%BC%E4%BA%8F%E6%8D%9F) Impairment loss decreased by approximately **MOP 2.0 million** or **159.5%**, primarily due to the settlement of some long-aged receivables during the review period - Impairment loss decreased by approximately **MOP 2.0 million** or **159.5%**, mainly due to the settlement of some long-aged receivables during the review period[54](index=54&type=chunk) [Administrative Expenses](index=18&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses remained largely stable at approximately **MOP 13.5 million** compared to the prior year, as growth in new business areas was offset by the gradual scaling down of certain non-core businesses - Administrative expenses remained largely stable at approximately **MOP 13.5 million** compared to the corresponding period of the previous year[55](index=55&type=chunk) - The stability in administrative expenses was mainly due to the growth in new business areas being offset by the gradual scaling down of certain non-core businesses[55](index=55&type=chunk) [Profit for the Period](index=18&type=section&id=%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9) Profit for the period decreased by approximately **MOP 2.0 million** to **MOP 0.5 million**, primarily reflecting the combined impact of the aforementioned financial changes - Profit for the six months ended June 30, 2025, was approximately **MOP 0.5 million**, a decrease of approximately **MOP 2.0 million** compared to the prior year[56](index=56&type=chunk) - This change was primarily due to the combined impact of the aforementioned financial items[56](index=56&type=chunk) [Dividends](index=18&type=section&id=%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the company did not pay, declare, or propose any dividends - For the six months ended June 30, 2025, no dividends were paid, declared, or proposed[57](index=57&type=chunk) [Corporate Finance and Risk Management](index=18&type=section&id=%E4%BC%81%E4%B8%9A%E8%9E%8D%E8%B5%84%E5%8F%8A%E9%A3%8E%E9%99%A9%E7%AE%A1%E7%90%86) The Group's capital expenditure and working capital are primarily funded by cash generated from operations, maintaining a healthy liquidity position with increased cash and bank balances, a reduced gearing ratio, and ample unutilized bank facilities, while facing foreign exchange fluctuation risks without a current hedging policy [Liquidity and Financial Resources](index=18&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) As of June 30, 2025, the Group's total cash and bank balances, together with pledged bank deposits, increased to **MOP 146 million**, with the gearing ratio significantly decreasing to **5.2%**, a current ratio of **1.9 times**, and **MOP 154.7 million** in unutilized bank facilities - As of June 30, 2025, total cash and bank balances, together with pledged bank deposits, were approximately **MOP 146 million**, an increase of approximately **MOP 29 million** from the end of 2024[58](index=58&type=chunk) - The gearing ratio decreased from **9.2%** at the end of 2024 to **5.2%** as of June 30, 2025, mainly due to a reduction in bank overdrafts[58](index=58&type=chunk) - As of June 30, 2025, the Group had unutilized bank facilities of approximately **MOP 154.7 million**[58](index=58&type=chunk) - The Group's current ratio as of June 30, 2025, was **1.9 times**[58](index=58&type=chunk) [Future Plans for Material Investments and Capital Assets](index=19&type=section&id=%E6%9C%89%E5%85%B3%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E5%8F%8A%E8%B5%84%E6%9C%AC%E8%B5%84%E4%BA%A7%E7%9A%84%E6%9C%AA%E6%9D%A5%E8%AE%A1%E5%88%92) Other than those disclosed in the prospectus and this announcement, the Group has no other future plans for material investments or capital assets - Other than those disclosed in the prospectus and this announcement, the Group has no other plans for material investments or capital assets[60](index=60&type=chunk) [Pledge of Assets](index=19&type=section&id=%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group's office properties valued at approximately **MOP 34.4 million** and bank deposits of approximately **MOP 72.3 million** were pledged to banks as security for bank facilities Pledged Assets (MOP million) | Pledged Assets | As of June 30, 2025 (MOP million) | As of December 31, 2024 (MOP million) | | :--- | :--- | :--- | | Office Properties | 34.4 | 35.1 | | Bank Deposits | 72.3 | 72.1 | [Capital Commitments](index=19&type=section&id=%E8%B5%84%E6%9C%AC%E6%89%BF%E6%8B%85) As of June 30, 2025, the Group was obligated to pay **RMB 38.0 million** (approximately **MOP 42.9 million**) as capital contribution to Jiangmen Jinying Construction Engineering Co Ltd - As of June 30, 2025, the Group was obligated to pay **RMB 38.0 million** (equivalent to approximately **MOP 42.9 million**) as capital contribution to Jiangmen Jinying Construction Engineering Co Ltd[62](index=62&type=chunk) [Material Investments, Acquisitions and Disposals](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E3%80%81%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) As of March 2025, the Group completed the acquisition of a Hong Kong company holding SFC Type 4 and Type 9 licenses for business diversification, with no other material investments, acquisitions, or disposals during the period - As of March 2025, the Group completed the acquisition of a Hong Kong-incorporated limited company holding SFC Type 4 (advising on securities) and Type 9 (asset management) licenses[63](index=63&type=chunk) - This acquisition is expected to further diversify and expand the Group's business portfolio and open new revenue streams[63](index=63&type=chunk) [Exchange Rate Fluctuations](index=19&type=section&id=%E6%B1%87%E7%8E%87%E6%B3%A2%E5%8A%A8) The Group faces currency risks from transactions denominated in non-functional currencies such as HKD, RMB, and USD, currently without a foreign exchange hedging policy, but management regularly monitors and considers appropriate measures - The Group's currency risk primarily arises from raw material purchases, sales proceeds, and financial asset investments denominated in currencies other than the Group's functional currency, mainly HKD, RMB, and USD[64](index=64&type=chunk) - The Group currently has no foreign exchange hedging policy, but management regularly monitors relevant foreign exchange risks and considers appropriate measures[64](index=64&type=chunk) [Employees and Remuneration](index=20&type=section&id=%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC) As of June 30, 2025, the Group's full-time employee count increased to **232**, primarily to support newly awarded renovation projects in the Macau market, with total staff costs for the period amounting to approximately **MOP 14.5 million** - As of June 30, 2025, the Group had **232** full-time employees, an increase from **159** at the end of 2024[65](index=65&type=chunk) - The increase in employee numbers was primarily due to increased resource requirements to support newly awarded renovation projects in the Macau market[65](index=65&type=chunk) - Total staff costs for the period ended June 30, 2025, were approximately **MOP 14.5 million**[65](index=65&type=chunk) [Compliance with Laws and Regulations](index=20&type=section&id=%E9%81%B5%E5%AE%88%E6%B3%95%E5%BE%8B%E5%8F%8A%E6%B3%95%E8%A7%84) The Group confirms its compliance with all relevant laws and regulations in its primary operating locations (Macau, Hong Kong, and China) for the first half of 2025 - The Group has complied with all relevant laws and regulations in Macau, Hong Kong, and China for the six months ended June 30, 2025[66](index=66&type=chunk) [Key Risks and Uncertainties](index=20&type=section&id=%E4%B8%BB%E8%A6%81%E9%A3%8E%E9%99%A9%E5%8F%8A%E4%B8%8D%E7%A1%AE%E5%AE%9A%E5%9B%A0%E7%B4%A0) The Group faces key risks including fluctuations in construction material and labor costs, poor project management or delays, volatile project cash flows, reliance on subcontractors, ability to attract and retain key management and technical talent, and global economic uncertainties - Significant changes in construction material and labor costs may lead to cost overruns, affecting operating results and financial performance[67](index=67&type=chunk) - Poor project management or delays will significantly impact goodwill and may incur penalties and/or additional costs[67](index=67&type=chunk) - The Group's success largely depends on key management personnel and its ability to attract and retain technical and managerial staff[67](index=67&type=chunk) - Global economic uncertainties, particularly due to tensions between China, the US, and the EU[67](index=67&type=chunk) [Events After Reporting Period](index=21&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The Board is unaware of any significant events requiring disclosure that occurred after June 30, 2025, and up to the date of this announcement - The Board is unaware of any significant events requiring disclosure that occurred after June 30, 2025, and up to the date of this announcement[68](index=68&type=chunk) Other Information [Corporate Governance](index=21&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the SEHK Listing Rules - The company has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix C1 of the SEHK Listing Rules[69](index=69&type=chunk) - For the six months ended June 30, 2025, the company has complied with all applicable code provisions of the Corporate Governance Code[69](index=69&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[70](index=70&type=chunk) [Standard Securities Dealing Code for Directors](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E5%87%86%E5%AE%88%E5%88%99) The company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code - The company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[71](index=71&type=chunk) - All directors confirmed their compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[71](index=71&type=chunk) [Audit Committee](index=21&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The company's Audit Committee, established in August 2018 and comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The company established an Audit Committee on August 17, 2018, comprising three independent non-executive directors, with Mr Au Yeung Wai Lap as Chairman of the Audit Committee[72](index=72&type=chunk) - The unaudited condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by the Audit Committee and the Group's auditor, Tianzhi Hong Kong Certified Public Accountants Limited[72](index=72&type=chunk)

[Unaudited Condensed Interim Results](index=2&type=section&id=Unaudited%20Condensed%20Interim%20Results) The Group's unaudited condensed interim results for the six months ended June 30, 2025, show a narrowed loss from continuing operations but an overall loss, with total comprehensive income turning significantly positive due to exchange gains [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, Hongqiao Group's loss from continuing operations narrowed, but an overall loss was still recorded, with total comprehensive income turning into a significant gain from a loss in the prior period, primarily due to exchange gains Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Continuing operations** | | | | Revenue | 15,487 | 46,054 | | Gross profit | 213 | 12,506 | | Loss before income tax | (40,092) | (44,385) | | Loss for the period | (40,092) | (44,385) | | **Discontinued operations** | | | | Loss for the period | (3,054) | (8,738) | | **Total loss for the period** | (43,146) | (53,123) | | **Total comprehensive income/(loss) for the period** | 489,154 | (710,140) | | **Basic loss per share from continuing and discontinued operations** | (0.27) HK cents | (0.44) HK cents | | **Basic loss per share from continuing operations** | (0.26) HK cents | (0.41) HK cents | | **Basic loss per share from discontinued operations** | (0.01) HK cents | (0.03) HK cents | - Total comprehensive income for the period turned from a **loss of HK$710,140 thousand** in the first half of 2024 to a **gain of HK$489,154 thousand** in the first half of 2025, primarily due to exchange differences of **HK$534,563 thousand** arising from the translation of financial statements of overseas operations[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets significantly increased, driven by higher exploration and evaluation asset values and equity growth from share issuance Condensed Consolidated Statement of Financial Position (as of June 30) | Metric | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Exploration and evaluation assets | 6,189,942 | 5,367,781 | | Total non-current assets | 6,259,043 | 5,465,255 | | **Current assets** | | | | Cash and cash equivalents | 410,975 | 65,784 | | Total current assets | 522,492 | 222,166 | | **Current liabilities** | | | | Total current liabilities | 128,478 | 154,630 | | **Net assets** | 4,383,857 | 3,513,948 | | **Total equity** | 4,383,857 | 3,513,948 | - Exploration and evaluation assets increased from **HK$5,367,781 thousand** as of December 31, 2024, to **HK$6,189,942 thousand** as of June 30, 2025, indicating increased investment in mineral resources[7](index=7&type=chunk) - Cash and cash equivalents significantly increased from **HK$65,784 thousand** as of December 31, 2024, to **HK$410,975 thousand** as of June 30, 2025, primarily due to proceeds from share placing[7](index=7&type=chunk)[83](index=83&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the Company significantly increased due to share placing and currency translation gains, despite recording a loss for the period Condensed Consolidated Statement of Changes in Equity (for the six months ended June 30) | Metric | As at January 1, 2025 (HK$ thousand) | As at June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | | Total attributable to owners of the Company | 3,559,289 | 4,437,275 | | Non-controlling interests | (45,341) | (53,418) | | Total equity | 3,513,948 | 4,383,857 | | **Key Changes** | | | | Shares issued through placing | 376,000 | | | Loss for the period | (32,562) | | | Currency translation | 534,281 | | - Equity increased by **HK$376,000 thousand** through share placing, comprising **HK$4,700 thousand** in share capital and **HK$371,300 thousand** in share premium, significantly boosting the Company's equity[9](index=9&type=chunk) - Currency translation generated **HK$534,281 thousand** in other comprehensive income, positively impacting equity[9](index=9&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's cash outflow from operating activities decreased, and cash inflow from financing activities significantly increased, leading to a substantial rise in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (9,943) | (18,382) | | Net cash used in investing activities | (5,253) | 18,505 | | Net cash generated from financing activities | 362,156 | (11,861) | | Net increase in cash and cash equivalents | 346,960 | (11,738) | | Cash and cash equivalents at end of period | 410,975 | 151,282 | - Net cash generated from financing activities turned from an **outflow of HK$11,861 thousand** in the first half of 2024 to an **inflow of HK$362,156 thousand** in the first half of 2025, primarily due to **HK$376,000 thousand** cash inflow from share placing[10](index=10&type=chunk) - Net cash used in operating activities decreased from **HK$18,382 thousand** in the first half of 2024 to **HK$9,943 thousand** in the first half of 2025, indicating an improvement in operating cash outflow[10](index=10&type=chunk) [Notes to the Financial Statements](index=8&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the Group's financial statements, covering accounting policies, revenue breakdown, segment information, and specific asset and liability details [Basis of Presentation and Changes in Accounting Policies](index=8&type=section&id=1.%20Basis%20of%20Presentation%20and%20Changes%20in%20Accounting%20Policies) These financial statements are prepared in accordance with HKFRS, the Hong Kong Companies Ordinance, and GEM Listing Rules, reviewed by the Audit Committee, with no significant impact from new or revised standards effective January 1, 2025 - These financial statements are unaudited but have been reviewed by the Company's Audit Committee[11](index=11&type=chunk) - New or revised HKFRS accounting standards effective from January 1, 2025, had no significant impact on the Group's accounting policies[12](index=12&type=chunk) [Revenue](index=8&type=section&id=2.%20Revenue) The Group's total revenue significantly decreased from HK$71,447 thousand in the first half of 2024 to HK$22,386 thousand in the first half of 2025, mainly due to a substantial reduction in lithium battery sales from continuing operations and ride-hailing service income from discontinued operations Revenue Composition (for the six months ended June 30) | Business Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Continuing operations** | | | | Lithium battery sales | 11,600 | 44,666 | | Battery testing service income | 3,887 | 1,388 | | **Discontinued operations** | | | | Ride-hailing services and related income | 6,899 | 25,393 | | **Total Revenue** | 22,386 | 71,447 | - Continuing operations revenue decreased from **HK$46,054 thousand** to **HK$15,487 thousand**, with lithium battery sales revenue decreasing by approximately **74%**[14](index=14&type=chunk)