[Announcement Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) The group's total revenue decreased by 5.8% in H1 2025, primarily due to lower property development income, while core net profit increased by 25.1% | Indicator | H1 2025 (RMB millions) | Year-on-Year Change | Remarks | | :--- | :--- | :--- | :--- | | Total Revenue | 8,123.8 | -5.8% | Decrease in property development income | | Property Development Income | 5,480.8 | -8.3% | Average settlement price increased by 33% | | Profit Attributable to Owners of the Company | 104.7 | -26.6% | | | Core Net Profit (Non-HKFRS) | 244.2 | +25.1% | Excludes fair value loss on investment properties and exchange losses | | Average Financing Cost | 3.59% | Remained low | | [Condensed Consolidated Financial Statements](index=2&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) This section presents the group's financial performance, comprehensive income, and financial position for the period [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the group's revenue decreased year-on-year, but gross profit slightly increased, while profit for the period and profit attributable to owners both declined | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 8,123,840 | 8,622,134 | -5.8% | | Cost of Sales and Services | (5,326,969) | (5,905,391) | -9.8% | | Gross Profit | 2,796,871 | 2,716,743 | +2.9% | | Other Income | 88,389 | 225,251 | -60.8% | | Fair Value Gains/(Losses) on Investment Properties | 4,694 | (52,356) | Shifted from loss to gain | | Finance Costs | (563,302) | (727,990) | -22.6% | | Profit Before Tax | 1,383,434 | 1,322,857 | +4.6% | | Profit for the Period | 671,859 | 758,723 | -11.4% | | Profit Attributable to Owners of the Company | 104,657 | 142,585 | -26.6% | | Basic Earnings Per Share | RMB 0.7 cents | RMB 0.9 cents | -22.2% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Total comprehensive income for the period significantly increased, mainly due to the reversal of exchange differences from loss to gain, positively impacting comprehensive income attributable to owners | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 671,859 | 758,723 | -11.4% | | Exchange Differences on Translation | 91,193 | (54,371) | Shifted from loss to gain | | Other Comprehensive Income/(Expense) for the Period | 87,341 | (121,272) | Shifted from expense to income | | Total Comprehensive Income for the Period | 759,200 | 637,451 | +19.1% | | Total Comprehensive Income Attributable to Owners of the Company | 191,998 | 21,313 | +800.8% | [Condensed Consolidated Statement of Financial Position](index=4&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 liabilities decreased, but net assets slightly increased, with stable net current assets and largely unchanged total equity | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 71,759,110 | 72,452,343 | -0.96% | | Current Assets | 58,311,493 | 62,772,180 | -7.11% | | Total Assets | 130,070,603 | 135,224,523 | -3.81% | | Current Liabilities | 34,133,437 | 37,687,814 | -9.43% | | Non-current Liabilities | 40,155,549 | 42,139,433 | -4.71% | | Net Assets | 55,781,617 | 55,397,276 | +0.69% | | Equity Attributable to Owners of the Company | 29,724,493 | 29,532,495 | +0.65% | | Total Equity | 55,781,617 | 55,397,276 | +0.69% | [Notes to the Condensed Consolidated Financial Statements](index=7&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 provides detailed notes on the group's general information, accounting policies, and specific financial items [General Information](index=7&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Grandjoy Property Limited primarily engages in investment holding, property investment and development, and hotel operations, with COFCO Group as its ultimate controlling entity - The Company's principal business is investment holding, with its subsidiaries primarily engaged in investment holding, property investment and development, and hotel operations[12](index=12&type=chunk) - The Company's immediate holding company is Grandjoy Holdings Group Co., Ltd., and its ultimate holding company is COFCO Group[12](index=12&type=chunk) [Basis of Preparation](index=7&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 Interim Financial Reporting and should be read in conjunction with the annual financial statements - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange[13](index=13&type=chunk) [Principal Accounting Policies](index=8&type=section&id=%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, with no significant impact from newly applied HKFRS amendments in the current period - The condensed consolidated financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments which are measured at fair value[14](index=14&type=chunk) - The revised Hong Kong Financial Reporting Standards accounting standards were first applied in this interim period, but they had no significant impact on financial performance and position[15](index=15&type=chunk) [Revenue and Segment Information](index=8&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The group's total revenue decreased by 5.8% year-on-year, mainly due to lower settlement area in property development, while property investment and development remain the primary income sources - The Group's operating segments include property investment, property and land development, hotel operations, management output projects, and other services[16](index=16&type=chunk) | Segment | H1 2025 Revenue (RMB thousands) | H1 2024 Revenue (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Rental and Related Service Income from Investment Properties | 2,037,959 | 2,090,723 | -2.5% | | Sales of Properties Held for Sale | 5,480,798 | 5,975,356 | -8.3% | | Management Output Projects | 107,211 | 72,957 | +46.9% | | Hotel Operations | 466,160 | 467,518 | -0.3% | | Total Revenue | 8,123,840 | 8,622,134 | -5.8% | - Revenue from customer contracts primarily originates from mainland China, with a larger proportion recognized at a point in time[18](index=18&type=chunk)[19](index=19&type=chunk) [Other Income](index=14&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income significantly decreased this period, primarily due to reduced bank interest income and government grants | Source | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Bank Interest Income | 50,269 | 117,679 | -57.3% | | Government Grants | 5,478 | 68,214 | -92.0% | | Total Other Income | 88,389 | 225,251 | -60.8% | [Other Gains and Losses, Net](index=14&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D%E6%B7%A8%E9%A1%8D) Other gains and losses, net, improved but still recorded a loss, mainly affected by impairment losses on properties held for sale and exchange losses | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Gains/(Losses) on Disposal of Property, Plant and Equipment | 2,700 | (79) | Shifted from loss to gain | | Impairment Loss on Properties Held for Sale | (135,896) | – | Newly recognized loss | | Impairment Loss on Properties Under Development for Sale | – | (191,998) | Loss decreased | | Net Exchange Losses | (59,559) | (1,145) | Loss widened | | Total Other Gains and Losses, Net | (181,692) | (194,630) | Loss narrowed | [Finance Costs](index=15&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs significantly decreased this period, primarily due to reduced interest expenses on bank borrowings, joint ventures, and third-party loans, alongside increased capitalized interest on properties under development | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Interest on Bank Borrowings | 522,511 | 559,599 | -6.7% | | Interest on Loans from Joint Ventures | 33,154 | 106,512 | -68.9% | | Interest on Loans from Third Parties | 62,143 | 176,795 | -64.8% | | Total Interest Expense | 691,793 | 969,098 | -28.6% | | Less: Interest Capitalized on Properties Under Development for Sale | (128,491) | (235,645) | -45.5% | | Finance Costs | 563,302 | 727,990 | -22.6% | [Profit Before Tax](index=16&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) The group's profit before tax is presented after deducting total depreciation and amortization, and costs of sales and services, with cost of properties sold being the largest component | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Depreciation and Amortization | 128,579 | 130,948 | -1.8% | | Cost of Properties Sold | 4,502,249 | 5,076,074 | -11.3% | | Direct Operating Expenses from Investment Properties Generating Rental Income | 457,549 | 469,843 | -2.7% | | Total Cost of Sales and Services | 5,326,969 | 5,905,391 | -9.8% | [Income Tax Expense](index=17&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense significantly increased this period, mainly due to a substantial rise in China dividend withholding tax and under-provision for prior years | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | China Corporate Income Tax | 373,486 | 381,222 | -2.0% | | China Dividend Withholding Tax | 213,022 | – | Newly recognized | | Land Appreciation Tax | 101,154 | 97,287 | +4.0% | | Total Current Tax | 698,465 | 491,375 | +42.1% | | Under/(Over)-provision in Prior Years | 35,340 | (143,314) | Shifted from over-provision to under-provision | | Deferred Tax | (22,230) | 216,073 | Shifted from positive to negative | | Total Income Tax Expense | 711,575 | 564,134 | +26.1% | [Earnings Per Share](index=17&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share attributable to owners of the company was RMB 0.7 cents, a year-on-year decrease, with no diluted EPS presented due to the absence of potential ordinary shares | Indicator | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit for Calculating Basic Earnings Per Share (RMB thousands) | 104,657 | 142,585 | -26.6% | | Number of Shares for Calculating Basic Earnings Per Share (thousands of shares) | 15,326,426 | 15,326,426 | Unchanged | | Basic Earnings Per Share | RMB 0.7 cents | RMB 0.9 cents | -22.2% | - No diluted earnings per share is presented as there are no potential ordinary shares in issue[33](index=33&type=chunk) [Dividends](index=18&type=section&id=%E8%82%A1%E6%81%AF) The company has not proposed, paid, or declared any ordinary share dividends for the current or prior periods - The Company has not proposed, paid, or declared any ordinary share dividends for the current period or the prior period[34](index=34&type=chunk) [Trade and Other Receivables](index=18&type=section&id=%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE) As of June 30, 2025, total trade and other receivables decreased, with a reduction in credit loss provisions, and some receivables are pledged for bank financing | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Trade Receivables | 62,865 | 69,989 | -10.2% | | Receivables from Hotel Operations and Related Services | 16,495 | 14,045 | +17.4% | | Provision for Credit Losses | (14,223) | (23,081) | -38.4% | | Total Trade and Other Receivables | 71,108 | 81,630 | -12.9% | - Approximately **RMB 42,531,000** of trade and other receivables are pledged as collateral for certain bank financing granted to the Group[35](index=35&type=chunk) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 59,716 | 67,478 | | 3 months to 1 year | 7,078 | 6,952 | | 1 to 2 years | 3,085 | 5,383 | | 2 to 3 years | 1,229 | 1,817 | [Impairment Assessment of Financial Assets and Other Items](index=19&type=section&id=%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E5%8F%8A%E5%85%B6%E4%BB%96%E9%A0%85%E7%9B%AE%E4%B9%8B%E6%B8%9B%E5%80%BC%E8%A9%95%E4%BC%B0) Total impairment losses recognized this period significantly decreased, mainly due to a reversal of impairment for trade receivables and a substantial reduction in impairment for amounts due from joint ventures | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Trade Receivables | (338) | 2,285 | Shifted from loss to gain | | Deposits and Other Receivables | 5,740 | (834) | Shifted from gain to loss | | Loans to Associates | 7,211 | 9,926 | -27.4% | | Amounts Due from Joint Ventures | 1,514 | 23,000 | -93.4% | | Total Impairment Losses Recognized | 17,733 | 37,775 | -53.1% | [Trade and Other Payables](index=20&type=section&id=%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) As of June 30, 2025, total trade and other payables decreased, primarily comprising construction costs for properties under development and other project-related expenses | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Trade Payables | 8,024 | 11,362 | -29.4% | | Accumulated Construction Expenses | 3,741,011 | 4,298,018 | -13.0% | | Total Trade and Other Payables | 3,749,035 | 4,309,380 | -13.0% | - The credit period for trade payables is generally **60 to 90 days**, with retention periods for some construction cost retention money extending up to two years[39](index=39&type=chunk) [Share Capital](index=20&type=section&id=%E8%82%A1%E6%9C%AC) The company's authorized and issued and fully paid share capital remained unchanged during the reporting period | Share Capital Type | Number of Shares | Amount (HKD thousands) | Amount (RMB thousands) | | :--- | :--- | :--- | :--- | | Authorized: Ordinary Shares of HKD 0.10 each | 28,904,699,222 | 2,890,470 | 2,293,502 | | Issued and Fully Paid: Ordinary Shares of HKD 0.10 each | 14,231,124,858 | 1,423,112 | 1,122,414 | [Events After the Reporting Period](index=21&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The Board resolved to propose a share repurchase via scheme of arrangement, involving the cancellation of 4,729,765,214 scheme shares for a maximum cash consideration of approximately HKD 2,932,454,433, with plans to delist the shares - The Board of Directors resolved to propose to the scheme shareholders a share repurchase by way of a scheme of arrangement under Section 99 of the Companies Act[42](index=42&type=chunk) - The proposal involves the cancellation of **4,729,765,214 scheme shares** in exchange for a cancellation price of **HKD 0.62 per scheme share**, with a maximum cash consideration of approximately **HKD 2,932,454,433**[42](index=42&type=chunk) - Upon the scheme becoming effective, the Company will immediately apply to the Stock Exchange for the withdrawal of the listing of its shares on the Stock Exchange[43](index=43&type=chunk) [Business Review](index=22&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides an overview of the market conditions and the group's performance across its various business segments [Market Review](index=22&type=section&id=%E5%B8%82%E5%A0%B4%E5%9B%9E%E9%A1%A7) In H1 2025, China's economy grew steadily, consumption rebounded, while the real estate market continued to bottom out with narrowing declines in sales and prices, and commercial property remained relatively stable - In H1 2025, China's GDP grew by **5.3%** year-on-year, and total retail sales of consumer goods increased by **5.0%** year-on-year[44](index=44&type=chunk) - The real estate industry continued to bottom out, with new commercial housing sales area decreasing by **3.5%** year-on-year and sales value decreasing by **5.5%** year-on-year, while the overall decline in housing prices narrowed[44](index=44&type=chunk) - The commercial property market remained relatively stable overall, with narrowing rental declines and increased turnover in some core business districts[45](index=45&type=chunk) [Investment Property Business Review](index=23&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Investment property rental and related service income decreased by 2.5% year-on-year, mainly due to the prior period including Chengdu Grandjoy, with shopping center rental income declining but gross margin remaining stable | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Investment Property Rental and Related Service Income | 2,038.0 | 2,090.7 | -2.5% | | Investment Property Business Gross Margin | 78% | 78% | Unchanged | | Shopping Center Rental Income | 1,468.2 | - | -3% | | Shopping Center Average Occupancy Rate | 93% | - | -3 percentage points | | Office Building Rental Income | 166.9 | - | - | - The decrease in rental income was mainly due to the prior period including Chengdu Grandjoy, whose financial results were no longer consolidated into the Group's financial statements after September 10, 2024[47](index=47&type=chunk)[54](index=54&type=chunk) - Newly opened projects such as Xiamen, Sanya, and Nanchang Grandjoy City, which opened successively in H2 2024 and H1 2025, contributed to rental income[51](index=51&type=chunk) [Property Development Business Review](index=25&type=section&id=%E7%89%A9%E6%A5%AD%E9%96%8B%E7%99%BC%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Property development revenue decreased by 8.3% year-on-year, with a 32% drop in delivered area but a 33% increase in average settlement price, while contract sales value and area significantly declined | Indicator | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue (RMB millions) | 5,480.8 | - | -8.3% | | Delivered Property Construction Settlement Area (square meters) | 175,101 | - | -32% | | Average Settlement Price (RMB/square meter) | 30,614 | - | +33% | | Property Development Business Settlement Gross Margin | 18% | - | +3 percentage points | | Contract Sales Value (RMB millions) | 2,748.9 | 14,756.1 | -81.4% | | Contract Sales Area (square meters) | 164,178.1 | 447,199.0 | -63.3% | | Average Sales Price (RMB/square meter) | 16,743.4 | - | -49.3% | - Facing adjustments in the real estate industry, the Group actively engaged in marketing collaborations to boost customer confidence and sales performance[55](index=55&type=chunk) [Hotel Operations Business Review](index=26&type=section&id=%E9%85%92%E5%BA%97%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The group's hotel operating revenue remained largely flat, but the average occupancy rate improved to 84% | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Hotel Operations Sales Revenue | 466.2 | 467.5 | -0.3% | | Hotel Average Occupancy Rate | 84% | 80% | +4 percentage points | | Hotel Project | H1 2025 Average Occupancy Rate (%) | H1 2024 Average Occupancy Rate (%) | | :--- | :--- | :--- | | St. Regis Sanya Yalong Bay Resort | 80 | 68 | | MGM Grand Sanya | 91 | 91 | | Waldorf Astoria Beijing | 70 | 70 | | Grandjoy Hotel Beijing | 85 | 76 | [Management Output Business Review](index=27&type=section&id=%E7%AE%A1%E7%90%86%E8%BC%B8%E5%87%BA%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Management output project revenue significantly increased by 47% year-on-year, primarily driven by new management income from Huaxia Grandjoy Commercial REIT | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Management Output Project Revenue | 107.2 | 72.957 | +47% | - Revenue growth was primarily due to new management income from Huaxia Grandjoy Commercial REIT[60](index=60&type=chunk) [Financial Review](index=27&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section details the group's profit performance, liquidity, and financial position, highlighting changes in key financial metrics [Profit](index=27&type=section&id=%E6%BA%A2%E5%88%A9) The group's profit for the period decreased by 11.4% year-on-year, and profit attributable to owners decreased by 26.6%, mainly due to reduced share of profits from joint ventures, while core net profit (non-HKFRS) increased by 25.1% | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Group Profit | 671.9 | - | -11.4% | | Profit Attributable to Owners of the Company | 104.7 | 142.6 | -26.6% | | Post-tax Fair Value Loss on Investment Properties | (69.8) | (60.7) | Loss widened | | Net Exchange (Losses)/Gains | (69.7) | 8.1 | Shifted from gain to loss | | Core Net Profit Attributable to Owners of the Company (Non-HKFRS) | 244.2 | 195.2 | +25.1% | - The decrease in profit attributable to owners of the Company was mainly due to a reduction in the share of profits from joint ventures[61](index=61&type=chunk) [Liquidity and Financial Position](index=28&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) Total assets and interest-bearing borrowings both decreased, the net debt to total equity ratio slightly declined, and the average financing cost remained low and further reduced, with ample bank credit lines | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 130,070.6 | 135,224.5 | -3.8% | | Cash and Cash Equivalents | 16,900.2 | 19,188.3 | -11.9% | | Total Interest-Bearing Borrowings | 42,000.3 | 44,172.7 | -4.9% | | Total Equity | 55,781.6 | 55,397.3 | +0.7% | | Current Ratio | 1.71 | 1.67 | +0.04 | | Net Debt to Total Equity Ratio | 45.0% | 45.1% | -0.1 percentage points | | Weighted Average Borrowing Cost | 3.59% | 4.10% | -0.51 percentage points | - Approximately **79%** of interest-bearing borrowings are denominated in RMB, with **21%** in HKD and USD[65](index=65&type=chunk) - The Group has obtained bank credit lines of **RMB 57,930 million**, of which approximately **RMB 37,027 million** has been utilized, indicating smooth financing channels[65](index=65&type=chunk) [Other Information](index=29&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers various corporate governance, human resources, and forward-looking aspects of the company [Employees and Remuneration Policy](index=29&type=section&id=%E5%83%B1%E5%93%A1%E5%92%8C%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The group prioritizes talent development and incentives, establishing a diverse workforce and comprehensive training system, with 3,470 employees and competitive compensation and benefits - The Group has established core training programs such as "Core Team Training Camp" and "Golden Helmsman" to build a comprehensive talent development system[66](index=66&type=chunk) - As of the end of the review period, the Group had a total of **3,470 employees**[66](index=66&type=chunk) - The Group's employees participate in central retirement pension schemes and mandatory provident fund schemes, making contributions as required[67](index=67&type=chunk) [Future Outlook](index=30&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) For H2 2025, the real estate market is expected to stabilize, and consumption will continue to recover, with the group focusing on its "Excellent Urban Operations and Better Living Service Provider" strategy to enhance brand influence and commercial competitiveness - In H2 2025, the real estate market is expected to gradually bottom out and stabilize, while the consumer market is anticipated to continue its recovery momentum[68](index=68&type=chunk) - The Group will adhere to its strategic positioning as an "Excellent Urban Operations and Better Living Service Provider," continuously strengthening its brand influence and commercial competitiveness[68](index=68&type=chunk) [Dividends](index=30&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend paying an interim dividend for the six months ended June 30, 2025 - The Board does not recommend paying an interim dividend for the six months ended June 30, 2025[69](index=69&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[70](index=70&type=chunk) [Corporate Governance Code](index=31&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company has applied the principles of the Corporate Governance Code and complied with all applicable code provisions, with a deviation regarding the Chairman and General Manager roles deemed reasonable by the Board - The Company has applied the principles of the Corporate Governance Code and complied with all applicable code provisions[71](index=71&type=chunk) - The arrangement of the Chairman also serving as General Manager deviates from code provision C.2.1, but the Board believes Mr. Yao Changlin's extensive experience and comprehensive understanding of the business make his dual role reasonable[72](index=72&type=chunk) - The Board comprises five non-executive directors and three independent non-executive directors, with the Audit Committee entirely composed of independent non-executive directors, to maintain a balanced governance structure[72](index=72&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=31&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted a code of conduct for directors' securities transactions, and all directors confirmed compliance during the reporting period - The Company has adopted a code of conduct for directors' securities transactions, and all directors have confirmed compliance with this code during the six months ended June 30, 2025[73](index=73&type=chunk) [Auditor's Review of Interim Results](index=32&type=section&id=%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The unaudited condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by the auditor, Shinewing (HK) CPA Limited, and by the Audit Committee and senior management - The Group's interim results have been reviewed by the auditor, Shinewing (HK) CPA Limited, in accordance with Hong Kong Standard on Review Engagements 2410[74](index=74&type=chunk) - The interim results have also been reviewed by the Audit Committee and the Company's senior management[74](index=74&type=chunk) [Events After the End of the Reporting Period](index=32&type=section&id=%E5%9B%9E%E9%A1%A7%E6%9C%9F%E7%B5%90%E6%9D%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Other than the privatization proposal, no other significant events or transactions affecting the group occurred after June 30, 2025, up to the announcement date, requiring disclosure to shareholders - Except for the privatization proposal, no other significant events or transactions affecting the Group occurred after June 30, 2025, and up to the date of this announcement, requiring disclosure to the Company's shareholders[75](index=75&type=chunk) [Definitions](index=32&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used throughout the announcement, including "Directors," "Audit Committee," and "COFCO Group" - This section provides definitions for key terms and abbreviations used in the announcement, including "Directors," "Audit Committee," "COFCO Group," "the Company," and "Grandjoy Holdings Group"[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) This section provides a concise overview of the company's financial performance for the six months ended June 30, 2025, highlighting key metrics such as revenue, profit, and margins | Indicator | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue | 161,195 | 182,268 | -11.6% | | Gross Profit | 82,496 | 84,563 | -2.4% | | Profit before Income Tax | 86,765 | 67,589 | 28.4% | | Profit for the Period | 75,149 | 53,083 | 41.6% | | Gross Margin (%) | 51.2% | 46.4% | 10.3% | | Net Profit Margin (%) | 46.6% | 29.1% | 60.1% | | Earnings per Share (Basic and Diluted) | 0.074 | 0.052 | 42.3% | [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) This statement presents the company's financial performance, including revenue, expenses, and profit for the six months ended June 30, 2025 | Indicator | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :--- | :--- | :--- | | Revenue | 161,195 | 182,268 | | Cost of Sales | (78,699) | (97,705) | | Gross Profit | 82,496 | 84,563 | | Net Other Gains/(Losses) and Other Income | 33,797 | 12,652 | | Selling and Marketing Expenses | (17,215) | (17,714) | | Administrative Expenses | (12,310) | (10,519) | | Net Reversal/(Provision) for Expected Credit Losses on Trade and Other Receivables | 1,035 | (434) | | Finance Costs | (1,038) | (959) | | Profit before Income Tax | 86,765 | 67,589 | | Income Tax Expense | (11,616) | (14,506) | | Total Profit and Comprehensive Income for the Period | 75,149 | 53,083 | | Profit and Total Comprehensive Income for the Period Attributable to Owners of the Company | 75,149 | 53,083 | | Earnings per Share (Basic and Diluted) | 0.074 | 0.052 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement outlines the company's assets, liabilities, and equity as of June 30, 2025, providing a snapshot of its financial health | Assets and Liabilities | 2025-06-30 (Thousand RMB) | 2024-12-31 (Thousand RMB) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 4,787 | 5,995 | | Investment Properties | 14,806 | 17,362 | | Right-of-use Assets | 12,819 | 18,969 | | Intangible Assets | 912 | 1,049 | | Investment in Unallocated Silver | 175,121 | 141,290 | | Other Receivables | 4,440 | 6,614 | | Fixed Deposits | – | 80,000 | | Deferred Tax Assets | 1,361 | 1,115 | | **Total Non-current Assets** | **214,246** | **272,394** | | **Current Assets** | | | | Inventories | 8,175 | 9,714 | | Trade and Other Receivables | 42,913 | 35,216 | | Contract Assets | 2,549 | 4,637 | | Fixed Deposits | 80,000 | – | | Restricted Cash | 648 | 647 | | Cash and Cash Equivalents | 206,650 | 282,912 | | **Total Current Assets** | **340,935** | **333,126** | | **Current Liabilities** | | | | Trade and Other Payables | 106,496 | 73,780 | | Contract Liabilities | 20,711 | 19,826 | | Lease Liabilities | 11,509 | 13,763 | | Tax Payable | 7,497 | 8,968 | | **Total Current Liabilities** | **146,213** | **116,337** | | **Net Current Assets** | **194,722** | **216,789** | | **Total Assets Less Current Liabilities** | **408,968** | **489,183** | | **Non-current Liabilities** | | | | Lease Liabilities | 23,963 | 31,377 | | Deferred Tax Liabilities | 3,865 | 4,696 | | **Total Non-current Liabilities** | **27,828** | **36,073** | | **Net Assets** | **381,140** | **453,110** | | **Equity** | | | | Share Capital | 8,876 | 8,876 | | Share Premium | 179,333 | 179,333 | | Other Reserves | (99,969) | (99,969) | | Retained Earnings | 292,900 | 364,870 | | **Total Equity** | **381,140** | **453,110** | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering accounting policies, estimates, and segment information [1. General Information](index=5&type=section&id=1.%20General%20Information) The company is an investment holding company incorporated in the Cayman Islands, listed on the Hong Kong Stock Exchange, primarily offering diverse services in mainland China - The company is incorporated in the Cayman Islands, with its shares listed on The Stock Exchange of Hong Kong[8](index=8&type=chunk) - The Group's principal activities are the provision of retail, catering, property management, laundry, after-school tutoring, property agency, and information technology services to property residents under the Clifford brand in mainland China[9](index=9&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The financial statements are prepared under HKAS 34 and Listing Rules, using historical cost convention with fair value measurement for unallocated silver - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the Listing Rules of the Stock Exchange[11](index=11&type=chunk) - The financial statements are prepared under the historical cost convention, except for investment in unallocated silver which is measured at fair value[11](index=11&type=chunk) [3. Significant Accounting Policies](index=6&type=section&id=3.%20Significant%20Accounting%20Policies) Accounting policies align with the 2024 annual consolidated financial statements, with no material impact from the adoption of HKAS 21 (Revised) - The accounting policies adopted are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2024[12](index=12&type=chunk) - The Group adopted HKAS 21 (Revised) "Lack of Exchangeability" which had no material impact on the financial results for the current period[13](index=13&type=chunk) [4. Critical Accounting Estimates and Judgements](index=7&type=section&id=4.%20Critical%20Accounting%20Estimates%20and%20Judgements) Significant management judgments and estimation uncertainties in preparing the financial statements remain consistent with those used in the 2024 annual report - Key accounting estimates and judgments are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2024[15](index=15&type=chunk) [5. Segment Information](index=7&type=section&id=5.%20Segment%20Information) The group reports segment information across seven operating segments, with segment results excluding centrally driven items like net other gains, finance costs, and income tax - The Group reports segment information based on seven operating segments: retail services, information technology services, property management services, after-school tutoring services, property agency services, catering services, and other services[17](index=17&type=chunk)[18](index=18&type=chunk) - Segment results exclude centrally driven items such as net other gains, finance costs, central administrative expenses, and income tax expense[17](index=17&type=chunk) [Segment Revenue and Results](index=8&type=section&id=Segment%20Revenue%20and%20Results) Total revenue for the six months ended June 30, 2025, was RMB 161,195 thousand, with property management contributing the largest segment profit and retail services the largest revenue [Segment Revenue and Results for the Six Months Ended June 30, 2025](index=8&type=section&id=Segment%20Revenue%20and%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) | Segment | Revenue (Thousand RMB) | Segment Result (Thousand RMB) | | :--- | :--- | :--- | | Retail Services | 63,099 | 9,533 | | Information Technology Services | 5,733 | 2,519 | | Property Management Services | 55,069 | 33,119 | | After-school Tutoring Services | 17,358 | 8,676 | | Property Agency Services | 3,290 | 1,443 | | Catering Services | 10,035 | 659 | | Other | 6,611 | 1,931 | | **Total** | **161,195** | **57,880** | | Profit for the Period | | 75,149 | [Segment Assets and Liabilities](index=10&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, total segment assets were RMB 91,401 thousand, with centrally managed assets like unallocated silver, fixed deposits, and cash comprising a significant portion of total assets [Segment Assets as at June 30, 2025 and December 31, 2024](index=10&type=section&id=Segment%20Assets%20as%20at%20June%2030%2C%202025%20and%20December%2031%2C%202024) | Segment | 2025-06-30 (Thousand RMB) | 2024-12-31 (Thousand RMB) | | :--- | :--- | :--- | | Retail Services | 42,925 | 41,146 | | Information Technology Services | 13,694 | 13,267 | | Property Management Services | 15,840 | 16,816 | | After-school Tutoring Services | 12,061 | 13,516 | | Property Agency Services | 270 | 338 | | Catering Services | 2,294 | 12,647 | | Other | 4,317 | 1,826 | | **Total Segment Assets** | **91,401** | **99,556** | | Investment in Unallocated Silver | 175,121 | 141,290 | | Fixed Deposits | 80,000 | 80,000 | | Restricted Cash | 648 | 647 | | Cash and Cash Equivalents | 206,650 | 282,912 | | Deferred Tax Assets | 1,361 | 1,115 | | **Total Assets** | **555,181** | **605,520** | [Geographical and Major Customer Information](index=11&type=section&id=Geographical%20and%20Major%20Customer%20Information) Over 75% of non-current assets and 90% of revenue are from mainland China, with Guangdong Clifford Hospital contributing 9% of the group's multi-segment revenue - Over **75%** of non-current assets (excluding financial assets, investment in unallocated silver, and deferred tax assets) are located in mainland China[23](index=23&type=chunk) - Over **90%** of revenue is derived from operations and customers in mainland China[23](index=23&type=chunk) - Guangdong Clifford Hospital Co, Ltd (controlled by Ms Meng Lihong) contributed **9%** of the Group's revenue across its retail, information technology, property management, property agency, after-school tutoring, catering, and other segments[23](index=23&type=chunk) [6. Income Tax Expense](index=12&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense decreased to RMB 11,616 thousand for the six months ended June 30, 2025, primarily due to lower PRC Enterprise Income Tax and Withholding Income Tax [Income Tax Expense for the Six Months Ended June 30, 2025](index=12&type=section&id=Income%20Tax%20Expense%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) | Tax Category | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :--- | :--- | :--- | | Current Tax: | | | | – PRC Enterprise Income Tax | 11,318 | 13,273 | | – PRC Withholding Income Tax | 1,375 | 6,461 | | **Total Current Tax** | **12,693** | **19,734** | | Deferred Tax: | | | | – PRC Enterprise Income Tax (Credit)/Expense | (377) | 372 | | – PRC Withholding Income Tax Credit | (700) | (5,600) | | **Total Deferred Tax Credit** | **(1,077)** | **(5,228)** | | **Income Tax Expense** | **11,616** | **14,506** | [PRC Enterprise Income Tax](index=12&type=section&id=PRC%20Enterprise%20Income%20Tax) PRC entities generally face a 25% corporate income tax rate, with some high-tech enterprises enjoying a 15% preferential rate and small enterprises a 5% reduced rate until 2027 - PRC entities are generally subject to an Enterprise Income Tax rate of **25%**[25](index=25&type=chunk) - One subsidiary, certified as a "High and New Technology Enterprise," enjoys a preferential Enterprise Income Tax rate of **15%** until 2026[25](index=25&type=chunk) - Certain qualified small enterprises are eligible for a **5%** reduced effective tax rate until December 31, 2027[25](index=25&type=chunk) [PRC Withholding Income Tax](index=13&type=section&id=PRC%20Withholding%20Income%20Tax) Dividends declared by PRC entities to foreign investors are subject to a 10% withholding tax, reduced to 5% for Hong Kong-registered direct holding companies meeting tax arrangement criteria - Dividends declared by PRC entities to foreign investors from profits earned after January 1, 2008, are subject to a **10%** PRC withholding income tax[26](index=26&type=chunk) - A lower withholding income tax rate of **5%** applies if the direct holding company of the PRC subsidiary is incorporated or operates in Hong Kong and meets the requirements of the PRC-Hong Kong tax arrangement[26](index=26&type=chunk) - As of June 30, 2025, deferred tax provision has been made at a **5%** withholding income tax rate for earnings of certain profitable PRC subsidiaries distributed to other overseas group entities[26](index=26&type=chunk) [Hong Kong Profits Tax](index=13&type=section&id=Hong%20Kong%20Profits%20Tax) Hong Kong Profits Tax applies a two-tiered rate of 8.25% on the first HKD 2 million of profit and 16.5% thereafter, with no provision made due to no taxable profit - Hong Kong Profits Tax operates under a two-tiered system, with a tax rate of **8.25%** on the first HKD 2 million of assessable profits and **16.5%** on profits exceeding this amount[27](index=27&type=chunk) - The Group had no assessable profits in Hong Kong for the six months ended June 30, 2025, and therefore no provision for Hong Kong Profits Tax was made[27](index=27&type=chunk) [Overseas Corporate Income Tax](index=13&type=section&id=Overseas%20Corporate%20Income%20Tax) The Company and its British Virgin Islands subsidiaries are exempt from income tax in their respective jurisdictions - The Company (incorporated in the Cayman Islands) and its British Virgin Islands subsidiaries are exempt from income tax in their respective jurisdictions[28](index=28&type=chunk) [7. Earnings Per Share](index=14&type=section&id=7.%20Earnings%20Per%20Share) Basic and diluted earnings per share increased by 42.3% to RMB 0.074 for the six months ended June 30, 2025, with no dilutive potential ordinary shares [Earnings Per Share for the Six Months Ended June 30, 2025](index=14&type=section&id=Earnings%20Per%20Share%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB) | 75,149,000 | 53,083,000 | | Weighted Average Number of Ordinary Shares Issued | 1,015,750,000 | 1,015,750,000 | | Weighted Average Number of Ordinary Shares for Diluted EPS | 1,015,750,000 | 1,015,750,000 | | Diluted Basic Earnings Per Share Attributable to Owners of the Company (RMB) | 0.074 | 0.052 | - The Company had no dilutive potential ordinary shares during the reporting period, thus diluted earnings per share are the same as basic earnings per share[29](index=29&type=chunk) [8. Investment in Unallocated Silver](index=15&type=section&id=8.%20Investment%20in%20Unallocated%20Silver) The group holds 680,000 ounces of unallocated silver, recording a significant fair value gain of approximately RMB 33,831 thousand for the period, aimed at long-term capital appreciation - The Group holds **680,000 ounces** of unallocated silver, aiming for long-term capital appreciation[31](index=31&type=chunk) - For the six months ended June 30, 2025, the fair value gain on investment in unallocated silver was approximately **RMB 33,831 thousand**, a significant increase from RMB 11,879 thousand in the prior period[31](index=31&type=chunk) - The fair value is determined by reference to London Bullion Market quotations and can be unconditionally converted into allocated silver or realized as cash[32](index=32&type=chunk) [9. Trade and Other Receivables](index=16&type=section&id=9.%20Trade%20and%20Other%20Receivables) Trade receivables, net of impairment, increased to RMB 27,618 thousand due to higher related party receivables, while other receivables decreased, with total expected credit loss provisions of RMB 8,598 thousand [Trade and Other Receivables as at June 30, 2025 and December 31, 2024](index=16&type=section&id=Trade%20and%20Other%20Receivables%20as%20at%20June%2030%2C%202025%20and%20December%2031%2C%202024) | Category | 2025-06-30 (Thousand RMB) | 2024-12-31 (Thousand RMB) | | :--- | :--- | :--- | | Gross Trade Receivables | 35,557 | 25,506 | | Less: Impairment Provision for Trade Receivables | (7,939) | (8,939) | | **Net Trade Receivables** | **27,618** | **16,567** | | Gross Other Receivables | 18,944 | 24,177 | | Less: Impairment Provision for Other Receivables | (659) | (694) | | **Net Other Receivables** | **18,285** | **23,483** | | Prepayments | 1,450 | 1,780 | | **Total Trade and Other Receivables** | **47,353** | **41,830** | [Ageing Analysis of Trade Receivables (Net of Impairment)](index=17&type=section&id=Ageing%20Analysis%20of%20Trade%20Receivables%20%28Net%20of%20Impairment%29) | Ageing | 2025-06-30 (Thousand RMB) | 2024-12-31 (Thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 26,343 | 15,197 | | 1 to 2 years | 368 | 393 | | Over 2 years | 907 | 977 | | **Total** | **27,618** | **16,567** | - The Group has made a total provision for expected credit losses on trade and other receivables of approximately **RMB 8,598 thousand** (December 31, 2024: RMB 9,633 thousand)[35](index=35&type=chunk) [10. Trade and Other Payables](index=18&type=section&id=10.%20Trade%20and%20Other%20Payables) Total trade and other payables increased to RMB 106,496 thousand as of June 30, 2025, primarily due to the recognition of dividends payable [Trade and Other Payables as at June 30, 2025 and December 31, 2024](index=18&type=section&id=Trade%20and%20Other%20Payables%20as%20at%20June%2030%2C%202025%20and%20December%2031%2C%202024) | Category | 2025-06-30 (Thousand RMB) | 2024-12-31 (Thousand RMB) | | :--- | :--- | :--- | | Trade Payables | 30,871 | 35,993 | | Other Payables | 24,455 | 28,732 | | Accrued Salaries | 8,702 | 8,759 | | Dividends Payable | 42,177 | – | | Other Taxes Payable | 291 | 296 | | **Total** | **106,496** | **73,780** | [Ageing Analysis of Trade Payables](index=18&type=section&id=Ageing%20Analysis%20of%20Trade%20Payables) | Ageing | 2025-06-30 (Thousand RMB) | 2024-12-31 (Thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 26,739 | 33,378 | | 1 to 2 years | 2,692 | 1,534 | | 2 to 3 years | 992 | 944 | | Over 3 years | 448 | 137 | | **Total** | **30,871** | **35,993** | [11. Share Capital and Share Premium](index=19&type=section&id=11.%20Share%20Capital%20and%20Share%20Premium) As of June 30, 2025, the company's issued and fully paid ordinary shares remained at 1,015,750,000, with share capital of RMB 8,876 thousand and share premium of RMB 179,333 thousand [Details of Share Capital and Share Premium](index=19&type=section&id=Details%20of%20Share%20Capital%20and%20Share%20Premium) | Category | Number of Ordinary Shares | Share Capital (Thousand RMB) | Share Premium (Thousand RMB) | Total (Thousand RMB) | | :--- | :--- | :--- | :--- | :--- | | Authorized Share Capital (as at 2025-06-30) | 10,000,000,000 | 87,440 | – | – | | Issued and Fully Paid Share Capital (as at 2025-06-30) | 1,015,750,000 | 8,876 | 179,333 | 188,209 | [12. Dividends](index=19&type=section&id=12.%20Dividends) The Board approved a special dividend of 11.20 HK cents per ordinary share and a final dividend of 4.50 HK cents per ordinary share for FY2024, but no interim dividend is recommended for the current period - A special dividend of **11.20 HK cents** per ordinary share (approximately RMB 104,942 thousand) was approved on February 25, 2025[37](index=37&type=chunk) - A final dividend of **4.50 HK cents** per ordinary share (approximately RMB 42,177 thousand) for the year ended December 31, 2024, was approved on June 20, 2025[38](index=38&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[38](index=38&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the group's operational performance, financial results, future strategies, and key financial positions for the reporting period [Business Review](index=20&type=section&id=Business%20Review) The group offers a diverse service portfolio including property management, retail, after-school tutoring, IT, and ancillary living services, with property management expanding while other segments face market challenges - The Group's service portfolio comprises five major segments: property management, retail, after-school tutoring, information technology, and ancillary living services[39](index=39&type=chunk) [Property Management Services](index=20&type=section&id=Property%20Management%20Services) As of June 30, 2025, the group managed 22 properties with a total contracted GFA of approximately 10,189,000 square meters, showing an increase from December 31, 2024 [Total Contracted Gross Floor Area (GFA) and Number of Properties for Property Management Services](index=20&type=section&id=Total%20Contracted%20Gross%20Floor%20Area%20%28GFA%29%20and%20Number%20of%20Properties%20for%20Property%20Management%20Services) | Category | As at 2025-06-30 (Thousand sq.m.) | As at 2025-06-30 (Number of Communities/Properties or Projects) | As at 2024-12-31 (Thousand sq.m.) | As at 2024-12-31 (Number of Communities/Properties or Projects) | | :--- | :--- | :--- | :--- | :--- | | Residential Communities | 7,082 | 16 | 7,082 | 16 | | Pure Commercial Properties/Projects | 3,107 | 6 | 2,793 | 5 | | **Total** | **10,189** | **22** | **9,875** | **21** | [Retail Services](index=21&type=section&id=Retail%20Services) The group operates 24 retail stores with a total GFA of approximately 14,402 square meters, experiencing significant growth in fresh market daily revenue despite slight declines in supermarkets and convenience stores - The Group operates **24 retail stores**, including one fresh market, three supermarkets, and 20 convenience stores[41](index=41&type=chunk) [Average Daily Revenue by Retail Store Category](index=21&type=section&id=Average%20Daily%20Revenue%20by%20Retail%20Store%20Category) | Retail Store Category | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :--- | :--- | :--- | | Supermarkets | 175.40 | 191.07 | | Fresh Markets | 49.77 | 37.88 | | Convenience Stores | 125.38 | 125.60 | [After-school Tutoring Services](index=21&type=section&id=After-school%20Tutoring%20Services) As of June 30, 2025, the group maintained four learning centers in Panyu District, offering interest and language training courses, consistent with the previous year-end - The Group operates **four learning centers** in Panyu District, offering interest and language training courses[42](index=42&type=chunk) [Information Technology Services](index=22&type=section&id=Information%20Technology%20Services) The group provides IT services, engineering services, security system services, hardware and software integration, and acts as an agent for major telecommunication service providers - The Group provides information technology services, related engineering services, security system services, and hardware and software integration services[43](index=43&type=chunk) - The Group also acts as an agent for products and services of major telecommunication service providers[44](index=44&type=chunk) [Ancillary Living Services](index=22&type=section&id=Ancillary%20Living%20Services) Ancillary living services include catering, property agency, employment agency, and laundry services, with property agency business expected to recover gradually under supportive policies - Ancillary living services include catering services, property agency services, employment agency services, and laundry services[45](index=45&type=chunk) - The property agency business is affected by the "houses are for living, not for speculation" policy in mainland China, but is expected to gradually recover with local government policy support[47](index=47&type=chunk) [Prospects and Future Plans](index=23&type=section&id=Prospects%20and%20Future%20Plans) The group plans to expand its property management network through integrated projects, develop online marketing channels, and explore new investment opportunities under prudent financial management - The Group plans to expand its property management network through integrated projects such as apartments, shopping malls, and office buildings[50](index=50&type=chunk) - The Group intends to promote its services through online channels like websites and smartphone applications, and upgrade its sales and accounting systems to improve data collection[51](index=51&type=chunk) - Under prudent financial management, the Group prioritizes strict cost control and operational flexibility, exploring emerging investment opportunities to enhance its competitive position[52](index=52&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) Total revenue decreased by 11.6% to RMB 161.2 million, but gross margin and net profit margin significantly improved, leading to a 41.6% increase in net profit for the period - Total revenue decreased by **11.6%** from RMB 182.3 million to **RMB 161.2 million**[53](index=53&type=chunk) - Gross margin improved from **46.4% to 51.2%**, and net profit margin increased from **29.1% to 46.6%**[61](index=61&type=chunk)[67](index=67&type=chunk) - Net profit for the period increased by **41.6%** to **RMB 75.1 million**[67](index=67&type=chunk) [Revenue](index=24&type=section&id=Revenue) Total revenue for the period decreased by 11.6% to RMB 161,195 thousand, driven by growth in property management services but declines in retail, after-school tutoring, IT, and a significant reduction in ancillary living services due to the termination of school catering [Revenue by Service Segment](index=24&type=section&id=Revenue%20by%20Service%20Segment) | Service Segment | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change (Thousand RMB) | Change (%) | 2025 % of Total Revenue | 2024 % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 55,069 | 40,888 | 14,181 | 34.7 | 34.2 | 22.4 | | Retail Services | 63,099 | 63,819 | (720) | -1.1 | 39.1 | 35.0 | | After-school Tutoring Services | 17,358 | 20,682 | (3,324) | -16.1 | 10.8 | 11.3 | | Information Technology Services | 5,733 | 11,741 | (6,008) | -51.2 | 3.5 | 6.4 | | Ancillary Living Services | 19,936 | 45,138 | (25,202) | -55.8 | 12.4 | 24.8 | | **Total** | **161,195** | **182,268** | **(21,073)** | **-11.6** | **100.0** | **100.0** | [Property Management Services Revenue](index=25&type=section&id=Property%20Management%20Services%20Revenue) Property management services revenue increased by 34.7% to RMB 55.1 million, primarily due to new healthcare property management contracts and increased demand for home assistant services - Property management services revenue increased by **34.7%** to **RMB 55.1 million**[54](index=54&type=chunk) - The increase in general property management services revenue was mainly attributable to new healthcare property management contracts obtained during the period[54](index=54&type=chunk) - Revenue from resident support services increased by **2.6%** due to increased demand for home assistant services[54](index=54&type=chunk) [Retail Services Revenue](index=25&type=section&id=Retail%20Services%20Revenue) Retail services revenue slightly decreased by 1.1% to RMB 63.1 million, mainly due to intensified market competition, despite a 31.4% growth in fresh market revenue - Retail services revenue decreased by **1.1%** to **RMB 63.1 million**, primarily due to intensified competition in the retail market[55](index=55&type=chunk) [Revenue by Retail Store Category](index=25&type=section&id=Revenue%20by%20Retail%20Store%20Category) | Retail Store Category | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Supermarkets | 31,572 | 34,393 | -8.2 | | Fresh Markets | 8,958 | 6,818 | 31.4 | | Convenience Stores | 22,569 | 22,608 | -0.2 | [After-school Tutoring Services Revenue](index=26&type=section&id=After-school%20Tutoring%20Services%20Revenue) After-school tutoring services revenue declined by 16.1% to RMB 17.4 million, primarily due to decreased enrollment demand for various interest classes - After-school tutoring services revenue decreased by **16.1%** to **RMB 17.4 million**[57](index=57&type=chunk) - The decrease was mainly attributable to a decline in enrollment demand for various interest classes[57](index=57&type=chunk) [Information Technology Services Revenue](index=26&type=section&id=Information%20Technology%20Services%20Revenue) Information technology services revenue significantly decreased by 51.2% to RMB 5.7 million, mainly due to a decline in engineering services revenue from weaker project contract demand - Information technology services revenue significantly decreased by **51.2%** to **RMB 5.7 million**[58](index=58&type=chunk)[59](index=59&type=chunk) - This was primarily due to a **56.0%** decrease in engineering services revenue, attributed to weaker demand for project contracts[58](index=58&type=chunk) [Ancillary Living Services Revenue](index=27&type=section&id=Ancillary%20Living%20Services%20Revenue) Ancillary living services revenue significantly decreased by 55.8% to RMB 19.9 million, primarily due to the termination of the group's school catering services in the first quarter of 2025 - Ancillary living services revenue significantly decreased by **55.8%** to **RMB 19.9 million**[60](index=60&type=chunk) - This was primarily due to the Group's termination of its school catering services in the first quarter of 2025, leading to a **70.0%** decrease in catering services revenue[60](index=60&type=chunk) [Gross Profit and Gross Margin](index=27&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 2.4% to RMB 82.5 million, but gross margin improved to 51.2%, driven by a shift towards higher-margin IT maintenance contracts and fresh food procurement services - Gross profit decreased by **2.4%** to **RMB 82.5 million**[61](index=61&type=chunk) - Gross margin improved from **46.4% to 51.2%**[61](index=61&type=chunk) - The improvement in gross margin was mainly attributable to the shift in information technology services towards higher-margin maintenance contracts and the contribution from higher-margin fresh food procurement services launched in the second half of 2024[61](index=61&type=chunk) [Selling and Marketing Expenses](index=27&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses decreased by 2.8% to RMB 17.2 million, primarily due to reduced marketing activities in retail services - Selling and marketing expenses decreased by **2.8%** to **RMB 17.2 million**[62](index=62&type=chunk) - The decrease was mainly due to reduced marketing activities in retail services[62](index=62&type=chunk) [Administrative Expenses](index=28&type=section&id=Administrative%20Expenses) Administrative expenses increased by 17.0% to RMB 12.3 million, mainly due to incremental costs from the launch of fresh food procurement services and new healthcare property management contracts - Administrative expenses increased by **17.0%** to **RMB 12.3 million**[63](index=63&type=chunk) - The increase was mainly due to incremental costs arising from the launch of fresh food procurement services in the second half of 2024 and healthcare property management contracts commencing in early 2025[63](index=63&type=chunk) [Net Other Gains/(Losses) and Other Income](index=28&type=section&id=Net%20Other%20Gains%2F%28Losses%29%20and%20Other%20Income) Net other gains and other income increased to RMB 33.8 million, primarily driven by a significant fair value gain on investment in unallocated silver and reduced net exchange losses - Net other gains and other income increased to **RMB 33.8 million** (2024: RMB 12.7 million)[64](index=64&type=chunk) - The increase was mainly due to a fair value gain on investment in unallocated silver of **RMB 33.8 million** (2024: RMB 11.9 million)[64](index=64&type=chunk) - Net exchange losses decreased to **RMB 3.4 million** (2024: RMB 9.1 million)[64](index=64&type=chunk) [Finance Costs](index=28&type=section&id=Finance%20Costs) Finance costs remained stable at RMB 1.0 million, primarily consisting of interest expenses on lease liabilities - Finance costs were **RMB 1.0 million**, primarily interest expenses on lease liabilities, consistent with the prior period[65](index=65&type=chunk) [Income Tax Expense](index=28&type=section&id=Income%20Tax%20Expense) The effective tax rate decreased from 21.5% to 13.3% - The effective tax rate decreased from **21.5% to 13.3%**[66](index=66&type=chunk) [Net Profit for the Period](index=28&type=section&id=Net%20Profit%20for%20the%20Period) Net profit for the period increased by 41.6% to RMB 75.1 million, with the net profit margin improving to 46.6% - Net profit for the period was **RMB 75.1 million** (2024: RMB 53.1 million), representing a **41.6%** increase[67](index=67&type=chunk) - The net profit margin improved to **46.6%** (2024: 29.1%)[67](index=67&type=chunk) [Property, Plant and Equipment](index=29&type=section&id=Property%2C%20Plant%20and%20Equipment) The net book value of property, plant and equipment decreased from RMB 6.0 million to RMB 4.8 million - The net book value of property, plant and equipment decreased from **RMB 6.0 million to RMB 4.8 million**[68](index=68&type=chunk) [Investment Properties](index=29&type=section&id=Investment%20Properties) Investment properties decreased from RMB 17.4 million to RMB 14.8 million, primarily referring to properties held for long-term rental income - Investment properties decreased from **RMB 17.4 million to RMB 14.8 million**[69](index=69&type=chunk) [Investment in Unallocated Silver](index=29&type=section&id=Investment%20in%20Unallocated%20Silver) The group holds 680,000 ounces of unallocated silver with an estimated fair value of RMB 175.1 million, accounting for 31.3% of total assets, and remains optimistic about its prospects - The Group holds **680,000 ounces** of unallocated silver, with an estimated fair value of approximately **RMB 175.1 million**, representing about **31.3%** of the Group's total assets[70](index=70&type=chunk) - A fair value gain of approximately **RMB 33.8 million** was recorded during the reporting period[70](index=70&type=chunk) - The Group remains optimistic about its investment in silver, believing its dual appeal as an industrial metal and a safe-haven asset positions it favorably[70](index=70&type=chunk) [Inventories](index=30&type=section&id=Inventories) Inventories decreased from RMB 9.7 million to RMB 8.2 million, mainly due to reductions in retail service inventories and IT service raw materials, with no provisions or write-downs recognized - Inventories decreased from **RMB 9.7 million to RMB 8.2 million**[71](index=71&type=chunk) - The decrease was mainly due to a reduction in retail service inventories and information technology service raw materials[71](index=71&type=chunk) - No provisions or write-downs for inventories were recognized by the Group for the six months ended June 30, 2025[72](index=72&type=chunk) [Trade and Other Receivables](index=30&type=section&id=Trade%20and%20Other%20Receivables) Trade receivables increased by 66.7% to RMB 27.6 million due to new healthcare property management contracts, while other receivables decreased by 22.1% to RMB 18.3 million - Trade receivables increased by **66.7%** from RMB 16.6 million to **RMB 27.6 million**, primarily due to receivables from healthcare property management contracts that commenced in early 2025[74](index=74&type=chunk) - Other receivables decreased by **22.1%** from RMB 23.5 million to **RMB 18.3 million**[75](index=75&type=chunk) [Trade and Other Payables](index=30&type=section&id=Trade%20and%20Other%20Payables) Trade payables decreased by 14.2% to RMB 30.9 million, with other payables primarily comprising deposits received from retail business stall tenants - Trade payables decreased by **14.2%** from RMB 36.0 million to **RMB 30.9 million**[77](index=77&type=chunk) - Other payables primarily comprise deposits received from stall tenants of the retail business[78](index=78&type=chunk) [Interim Dividend](index=31&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[79](index=79&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the group's primary liquidity source was cash and cash equivalents of RMB 206.7 million, a decrease from December 31, 2024, with no new loans or borrowings during the period - The primary source of liquidity was cash and cash equivalents of **RMB 206.7 million** (December 31, 2024: RMB 282.9 million)[80](index=80&type=chunk) - The Group did not obtain any loans or borrowings for the six months ended June 30, 2025[81](index=81&type=chunk) [Pledged Assets](index=31&type=section&id=Pledged%20Assets) As of June 30, 2025, the group had no pledged assets - The Group had no pledged assets as at June 30, 2025[82](index=82&type=chunk) [Contingent Liabilities](index=31&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the group had no significant contingent liabilities - The Group had no significant contingent liabilities as at June 30, 2025[83](index=83&type=chunk) [Employees and Remuneration Policy](index=32&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the group's employee count increased to 753, with total remuneration rising to RMB 41.3 million, reflecting a commitment to employee development and comprehensive benefits - As of June 30, 2025, the Group had **753 employees** (December 31, 2024: 618 employees)[84](index=84&type=chunk) - Total remuneration for the six months ended June 30, 2025, was **RMB 41.3 million** (2024: RMB 38.0 million)[84](index=84&type=chunk) - The Group provides on-the-job training, Mandatory Provident Fund contributions, state-managed retirement benefit schemes, discretionary bonuses, and has a share option scheme[84](index=84&type=chunk) [Material Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates or Joint Ventures](index=32&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20or%20Joint%20Ventures) Excluding the investment in unallocated silver, the group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period - Other than the investment in unallocated silver, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[85](index=85&type=chunk) [Future Plans for Material Investments or Capital Assets](index=32&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the announcement date, the group has no specific future plans regarding material investments or capital assets - As of the date of this announcement, the Group has no specific future plans regarding material investments or capital assets[86](index=86&type=chunk) [Significant Post-Reporting Period Events](index=32&type=section&id=Significant%20Post-Reporting%20Period%20Events) No significant post-reporting period events affecting the group occurred from June 30, 2025, up to the announcement date - No significant post-reporting period events affecting the Group occurred from June 30, 2025, up to the date of this announcement[87](index=87&type=chunk) [Other Information](index=33&type=section&id=Other%20Information) This section covers corporate governance, securities transactions, audit committee review, and publication details of the interim results and report [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2025, and held no treasury shares - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[88](index=88&type=chunk) - As at June 30, 2025, the Company did not hold any treasury shares as defined under the Listing Rules[89](index=89&type=chunk) [Corporate Governance Code](index=33&type=section&id=Corporate%20Governance%20Code) The company complies with the Corporate Governance Code, with a deviation where Ms. Meng Lihong holds both Chairman and CEO roles, deemed beneficial due to her deep business knowledge - The Company complies with the Corporate Governance Code, with a deviation where Ms Meng Lihong holds both the Chairman and Chief Executive Officer positions[90](index=90&type=chunk)[91](index=91&type=chunk) - The Board believes this arrangement is in the best interest of the Group, as Ms Meng possesses in-depth knowledge and experience in the PRC business, providing strong and consistent leadership[91](index=91&type=chunk) [Standard Code for Securities Transactions](index=33&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company adopted the Standard Code for Securities Transactions for directors, and all directors confirmed compliance during the reporting period - The Company has adopted the Standard Code for Securities Transactions as the code of conduct for directors' securities transactions, as set out in Appendix C3 to the Listing Rules[92](index=92&type=chunk) - All directors confirmed compliance with the Standard Code for the six months ended June 30, 2025[92](index=92&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviews financial information integrity and internal controls, having no objections to the unaudited interim financial information - The Audit Committee consists of three independent non-executive directors, with Ms Law Kwan Mei as the chairperson[93](index=93&type=chunk) - Its primary responsibilities include reviewing the integrity, accuracy, and fairness of the Group's financial information, as well as the efficiency of operations and internal controls[93](index=93&type=chunk) - The Audit Committee has reviewed the unaudited interim financial information for the six months ended June 30, 2025, and has no objections[93](index=93&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=34&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement is published on the HKEX and company websites, with the interim report to be dispatched to shareholders and posted online in due course - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.cliffordmodernliving.com)[95](index=95&type=chunk) - The interim report will be dispatched to the Company's shareholders and posted on the aforementioned websites in due course[95](index=95&type=chunk) [Board of Directors](index=34&type=section&id=Board%20of%20Directors) This announcement lists the members of the Board of Directors, including executive, non-executive, and independent non-executive directors - The Board of Directors includes Executive Directors Ms Meng Lihong, Ms Ho Shuk Mei, and Mr Liu Xing; Non-executive Director Ms Leung Yuk Wah; and Independent Non-executive Directors Ms Law Kwan Mei, Mr Ho Cham, and Mr Mak Ping Leung[97](index=97&type=chunk)

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 HINGTEX HOLDINGS LIMITED 興紡控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1968） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 興 紡 控 股 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 未 經 審 核 綜 合 中 期 業 績，連 同 二 零 二 四 年 同 期（「二 零 二 四 年 上 半 年」）的 比 較 數 字。簡 明 綜 合 中 期 財 務 報 表 未 經 審 核 ...

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，概不會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。 淮北綠金產業投資股份有限公司 (Huaibei GreenGold Industry Investment Co., Ltd.*) （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：2450） 截至2025年6月30日止六個月中期業績公告 財務概要 淮北綠金產業投資股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然 公佈本公司及其附屬公司（合稱「本集團」）截至2025年6月30日止六個月（「報告 期間」）的未經審核中期業績，以及去年同期的比較數字。 * 僅供識別 – 1 – • 營業收入為人民幣127.3百萬元，比去年同期的人民幣110.8百萬元增加 14.9%。 • 歸屬於本公司權益股東的虧損及總全面虧損為人民幣2.8百萬元，比去年 同期的歸屬於權益股東的虧損及總全面虧損人民幣7.7百萬元減虧63.7%。 • 毛利率為40.5%，比去年同期36 ...

[Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Summary](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income-Summary) The Group reported a loss of HKD 27,847 thousand, with total revenue decreasing by 40.41% to HKD 9,994,518 thousand, despite reduced operating expenses | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 9,994,518 | 16,771,559 | (6,777,041) | -40.41% | | **Other Income** | 3,560 | 5,482 | (1,922) | -35.06% | | **Total Revenue and Other Income** | 9,998,078 | 16,777,041 | (6,778,963) | -40.41% | | **Total Expenses** | (10,008,529) | (16,787,221) | 6,778,692 | -40.38% | | **Operating Loss** | (10,451) | (10,180) | (271) | -2.66% | | **Finance Costs** | (18,166) | (17,949) | (217) | -1.21% | | **Loss Before Tax** | (28,617) | (28,129) | (488) | -1.73% | | **Taxation** | 770 | 863 | (93) | -10.78% | | **Loss for the Period** | (27,847) | (27,266) | (581) | -2.13% | | **Loss for the Period Attributable to Owners of the Company** | (28,537) | (27,018) | (1,519) | -5.62% | | **Basic and Diluted Loss Per Share (HK cents)** | (2.59) | (2.46) | (0.13) | -5.28% | - **Exchange differences** in other comprehensive income improved from a **HKD 37,621 thousand loss** in 2024 to a **HKD 76,831 thousand gain** in 2025, boosting total comprehensive income[3](index=3&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Summary](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position-Summary) Total assets increased to HKD 2,914,965 thousand, while net current liabilities shifted to HKD 216,900 thousand, indicating increased liquidity pressure | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Non-current Assets** | 1,990,953 | 1,926,237 | 64,716 | 3.36% | | **Current Assets** | 924,012 | 873,762 | 50,250 | 5.75% | | **Total Assets** | 2,914,965 | 2,799,999 | 114,966 | 4.11% | | **Total Equity Attributable to Owners of the Company** | 1,294,711 | 1,247,955 | 46,756 | 3.75% | | **Non-controlling Interests** | 54,452 | 52,224 | 2,228 | 4.27% | | **Total Equity** | 1,349,163 | 1,300,179 | 48,984 | 3.77% | | **Current Liabilities** | 1,140,912 | 816,878 | 324,034 | 39.67% | | **Non-current Liabilities** | 424,890 | 682,942 | (258,052) | -37.79% | | **Total Liabilities** | 1,565,802 | 1,499,820 | 65,982 | 4.40% | | **Net Current (Liabilities)/Assets** | (216,900) | 56,884 | (273,784) | -481.39% | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in HKD, adhering to HKAS 34 and Listing Rules Appendix 16, with figures rounded to the nearest thousand - Statements are prepared in accordance with **HKAS 34** and **Listing Rules Appendix 16**, presented in **HKD**, with figures rounded to the nearest thousand[6](index=6&type=chunk)[7](index=7&type=chunk) [2. Principal Accounting Policies](index=5&type=section&id=2.%20Principal%20Accounting%20Policies) Financial statements are prepared on a historical cost basis, with some assets at fair value; new HKAS 21 amendment had no material impact - Statements are prepared on a **historical cost basis**, with some assets measured at **fair value**[8](index=8&type=chunk) - First application of **HKAS 21 (Amendment) — Lack of Exchangeability** had **no significant impact**[8](index=8&type=chunk) - New or revised **HKFRSs** effective in the future but not yet adopted are listed, including **HKFRS 18**[9](index=9&type=chunk) [3. Segment Information](index=6&type=section&id=3.%20Segment%20Information) The Group operates in Canadian oil and gas (turned to loss) and China oil products trading (turned to profit), with revenue highly dependent on key customers - The Group operates in two segments: **Exploration, Development and Production (Oil and Gas)** and **Supply and Procurement (Oil Products Trading)**[10](index=10&type=chunk)[12](index=12&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Exploration, Development and Production** | | | | | | Sales to External Customers | 94,132 | 189,103 | (94,971) | -50.22% | | Segment (Loss)/Profit | (34,261) | 7,932 | (42,193) | -531.93% | | **Supply and Procurement** | | | | | | Sales to External Customers | 9,900,386 | 16,582,456 | (6,682,070) | -40.29% | | Segment (Loss)/Profit | 2,368 | (1,597) | 3,965 | 248.28% | | **Consolidated** | | | | | | Sales to External Customers | 9,994,518 | 16,771,559 | (6,777,041) | -40.41% | | Operating Loss | (10,451) | (10,180) | (271) | -2.66% | | Loss for the Period | (27,847) | (27,266) | (581) | -2.13% | [3.1 Segment Revenue and Results](index=6&type=section&id=3.1%20Segment%20Revenue%20and%20Results) Exploration, Development and Production revenue decreased 50.22%, turning to a HKD 34,261 thousand loss, while Supply and Procurement revenue decreased 40.29%, turning to a HKD 2,368 thousand profit - **Exploration, Development and Production** revenue decreased by **50.22%**, turning from a **HKD 7,932 thousand profit** to a **HKD 34,261 thousand loss**[11](index=11&type=chunk) - **Supply and Procurement** revenue decreased by **40.29%**, but turned from a **HKD 1,597 thousand loss** to a **HKD 2,368 thousand profit**[11](index=11&type=chunk) [3.2 Segment Assets and Liabilities](index=7&type=section&id=3.2%20Segment%20Assets%20and%20Liabilities) Both assets and liabilities increased for the Exploration, Development and Production and Supply and Procurement segments, reflecting structural changes Segment Assets and Liabilities (As of June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Segment Assets** | | | | | | Exploration, Development and Production | 1,794,116 | 1,741,246 | 52,870 | 3.04% | | Supply and Procurement | 1,099,728 | 1,033,640 | 66,088 | 6.40% | | **Segment Liabilities** | | | | | | Exploration, Development and Production | 507,016 | 497,991 | 9,025 | 1.81% | | Supply and Procurement | 877,153 | 819,523 | 57,630 | 7.03% | [3.3 Information about Major Customers](index=7&type=section&id=3.3%20Information%20about%20Major%20Customers) Supply and Procurement revenue is highly concentrated, with Customers A and B contributing most in H1 2025, while Customer C had no contribution - In the first half of 2025, two major customers contributed **HKD 6,759,787 thousand** to **Supply and Procurement** revenue[15](index=15&type=chunk) Revenue from Major Customers (For the six months ended June 30) | Customer | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | A Customer | 5,628,444 | 8,679,176 | | B Customer | 1,131,343 | – | | C Customer | – | 3,772,969 | [4. Revenue and Other Income](index=8&type=section&id=4.%20Revenue%20and%20Other%20Income) Total revenue decreased by 40.41% to HKD 9,994,518 thousand, mainly from reduced petroleum product trading, with other income also declining Revenue and Other Income (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | | | | | | Sales of Crude Oil and Natural Gas | 94,132 | 189,103 | (94,971) | -50.22% | | Trading and Distribution of Petroleum-related Products | 9,900,386 | 16,582,456 | (6,682,070) | -40.29% | | **Total Revenue** | 9,994,518 | 16,771,559 | (6,777,041) | -40.41% | | **Other Income** | | | | | | Bank Interest Income | 1,759 | 3,124 | (1,365) | -43.69% | | Rental Income | 634 | 698 | (64) | -9.17% | | Others | 1,167 | 1,660 | (493) | -29.70% | | **Total Other Income** | 3,560 | 5,482 | (1,922) | -35.06% | - Revenue is recognized at a **point in time** in accordance with **HKFRS 15**[18](index=18&type=chunk) [5. Other Gains and Losses](index=8&type=section&id=5.%20Other%20Gains%20and%20Losses) The Group reported a net exchange gain of HKD 24,577 thousand, a significant improvement from the prior year's exchange loss Other Gains and Losses (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net Exchange Gains/(Losses) | 24,577 | (15,219) | 39,796 | | Others | – | (28) | 28 | | **Total** | 24,577 | (15,247) | 39,824 | [6. Items Deducted from Operating Loss](index=9&type=section&id=6.%20Items%20Deducted%20from%20Operating%20Loss) Cost of inventories sold, depreciation, and depletion expenses significantly decreased, while staff costs, including directors' emoluments, increased Items Deducted from Operating Loss (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Cost of Inventories Sold | 9,869,666 | 16,547,797 | (6,678,131) | -40.36% | | Depreciation and Depletion Expenses | 59,755 | 96,649 | (36,894) | -38.17% | | Staff Costs | 38,767 | 35,268 | 3,499 | 9.92% | [7. Finance Costs](index=9&type=section&id=7.%20Finance%20Costs) Finance costs slightly increased by 1.21% to HKD 18,166 thousand, driven by new other loan interest, despite lower bank and secured loan interest Finance Costs (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Interest Expense on Bank Borrowings and Secured Term Loans | 13,522 | 14,323 | (801) | -5.59% | | Interest Expense on Lease Liabilities | 1,455 | 2,262 | (807) | -35.68% | | Interest Expense on Other Loans | 1,845 | – | 1,845 | N/A | | Accrued Provision for Abandonment Obligations | 1,344 | 1,364 | (20) | -1.47% | | **Total** | 18,166 | 17,949 | 217 | 1.21% | [8. Income Tax in the Consolidated Statement of Profit or Loss](index=9&type=section&id=8.%20Income%20Tax%20in%20the%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group recorded a HKD 770 thousand tax credit, mainly from an over-provision of China enterprise income tax, partially offset by Hong Kong profits tax under-provision - **Tax credit** of **HKD 770 thousand** in H1 2025, primarily from an **over-provision of HKD 796 thousand** for China enterprise income tax[23](index=23&type=chunk)[24](index=24&type=chunk) - **Hong Kong profits tax rate** is **16.5%**, while **Canadian and Chinese subsidiaries' tax rates** are both **25%**[23](index=23&type=chunk) [9. Interim Dividend](index=10&type=section&id=9.%20Interim%20Dividend) The Board does not recommend any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an **interim dividend** for H1 2025[25](index=25&type=chunk) [10. Loss Per Share](index=10&type=section&id=10.%20Loss%20Per%20Share) Basic and diluted loss per share attributable to owners of the Company increased to HK cents 2.59, with no dilutive potential ordinary shares Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | Change (HK cents) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (2.59) | (2.46) | (0.13) | -5.28% | - Diluted loss per share is the same as basic loss per share due to **no dilutive potential ordinary shares**[28](index=28&type=chunk) [11. Trade Receivables](index=11&type=section&id=11.%20Trade%20Receivables) Total trade receivables increased by 21.78% to HKD 557,460 thousand, with overdue amounts over 90 days significantly rising, yet deemed not credit impaired - Trade receivables generally have a **credit period of up to 90 days** and are **interest-free**[29](index=29&type=chunk) Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | 0 to 30 Days | 507,147 | 434,230 | 72,917 | 16.79% | | 31 to 60 Days | 175 | 385 | (210) | -54.55% | | 61 to 90 Days | 66 | 688 | (622) | -90.41% | | Over 90 Days | 50,072 | 22,455 | 27,617 | 123.00% | | **Total** | 557,460 | 457,758 | 99,692 | 21.78% | - Overdue but not impaired trade receivables amounted to **HKD 50,072 thousand**, a significant increase from **HKD 22,455 thousand** at the end of 2024[30](index=30&type=chunk)[31](index=31&type=chunk) [12. Trade and Other Payables](index=11&type=section&id=12.%20Trade%20and%20Other%20Payables) Total trade and other payables decreased by 13.01% to HKD 565,613 thousand, mainly due to reduced contract liabilities and VAT payables Trade and Other Payables (As of June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade Payables | 438,730 | 468,732 | (30,002) | -6.40% | | Contract Liabilities | 38,178 | 75,965 | (37,787) | -49.74% | | VAT Payables | 58 | 11,059 | (11,001) | -99.48% | | Other Payables | 73,893 | 74,093 | (200) | -0.27% | | **Total** | 565,613 | 650,214 | (84,601) | -13.01% | - **Contract liabilities** primarily represent customer advances, expected to be fully recognized as revenue within one year[32](index=32&type=chunk) - **Trade payables** are **interest-free**, with an average credit period of up to **90 days**[33](index=33&type=chunk) [13. Contingent Liabilities](index=12&type=section&id=13.%20Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025, consistent with the prior year-end - The Group had **no significant contingent liabilities** as of June 30, 2025[34](index=34&type=chunk) [14. Significant Related Party Transactions](index=12&type=section&id=14.%20Significant%20Related%20Party%20Transactions) The Group engaged in various related party transactions, mainly for petroleum product procurement and loan interest, with key management personnel compensation increasing by 18.47% Key Management Personnel Compensation (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Salaries, Bonuses and Allowances | 8,730 | 7,360 | 1,370 | 18.61% | | Pension Scheme Contributions | 127 | 116 | 11 | 9.48% | | **Total** | 8,857 | 7,476 | 1,381 | 18.47% | Related Party Transactions (For the six months ended June 30) | Relationship | Nature of Transaction | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | :--- | | Ultimate Holding Company | Procurement of Refined Oil and By-products | 3,628,421 | 5,747,594 | | Fellow Subsidiaries | Procurement of Refined Oil and By-products | 78,666 | 1,711,923 | | Fellow Associates | Procurement of Refined Oil and By-products | 450 | 20,091 | | Fellow Associates | Sales of Refined Oil and By-products | – | 27,817 | | Direct Holding Company | Interest Expense on Secured Term Loans | 12,148 | 11,182 | | Ultimate Holding Company | Interest Expense on Other Loans | 1,845 | 2,992 | - Henan YanChang entered into a supply agreement with YanChang Petroleum Group for the **procurement of refined oil and by-products**[37](index=37&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) International oil prices declined to USD 68/barrel in H1 2025, leading to a HKD 27.9 million Group loss, mainly from Canadian oil and gas operations - **International oil prices** declined due to geopolitical factors and tariff wars, with **WTI crude oil** averaging **USD 68/barrel** in H1 2025, down from **USD 77/barrel** in 2024[38](index=38&type=chunk)[39](index=39&type=chunk) - The Group's overall loss in H1 was approximately **HKD 27.9 million**, primarily due to the performance of its **Canadian oil and gas business**[39](index=39&type=chunk) [Canadian Producing Oil and Gas Upstream Business](index=14&type=section&id=Canadian%20Producing%20Oil%20and%20Gas%20Upstream%20Business) Novus faced declining oil prices and tight financing, resulting in a 37% production drop, 50% revenue decrease, and CAD 4.92 million net loss, prompting cost control and green tech exploration - **Novus's net oil and gas production** in H1 was **263,000 barrels of oil equivalent**, a **37% year-on-year decrease**; **sales revenue** was **CAD 16.4 million**, a **50% year-on-year decrease**; and a **net loss of CAD 4.92 million** was recorded[40](index=40&type=chunk) - **Capital expenditure** significantly decreased to **CAD 831 thousand**, a **75% year-on-year decrease**, slowing development progress[40](index=40&type=chunk) [Actively Responding to Production Decline, Continuously Optimizing Production and Operating Expenses](index=15&type=section&id=Actively%20Responding%20to%20Production%20Decline%2C%20Continuously%20Optimizing%20Production%20and%20Operating%20Expenses) Novus effectively controlled operating expenses by rapidly restoring production, pre-purchasing carbon credits, optimizing structure, and negotiating lower rent and insurance - Rapidly restored **daily average production of 184 barrels** lost due to extreme cold weather[41](index=41&type=chunk) - Saved **CAD 26 thousand** by pre-purchasing carbon credits, reduced **labor costs by CAD 1.82 million**, compressed **operating costs by CAD 35 thousand**, and lowered **office rent and insurance by CAD 77 thousand**[41](index=41&type=chunk) [Efficiently Organizing Production Operations, Effectively Improving Operational Efficiency](index=15&type=section&id=Efficiently%20Organizing%20Production%20Operations%2C%20Effectively%20Improving%20Operational%20Efficiency) Novus maintained stable production and efficiency by optimizing construction, adjusting inventory, and responding to weather, limiting Q1-Q2 production decline to 2% - Flexibly adjusted **inventory strategies** to ensure market supply and maximize profit amidst **international oil and natural gas price fluctuations**[42](index=42&type=chunk) - Rapidly completed **pipeline de-icing and well pad snow removal**, achieving only a **2% production decline** from Q1 to Q2[42](index=42&type=chunk) [Promoting Refined Oilfield Management, Continuously Implementing Cost Reduction and Efficiency Improvement](index=16&type=section&id=Promoting%20Refined%20Oilfield%20Management%2C%20Continuously%20Implementing%20Cost%20Reduction%20and%20Efficiency%20Improvement) Novus saved CAD 567 thousand in H1 by controlling expenses and carbon emissions, while implementing 52 production enhancement measures, increasing daily output by 103 barrels - Cumulative savings of **CAD 567 thousand** in H1, with an estimated **CAD 1.96 million** in annual savings[43](index=43&type=chunk) - Implemented **52 production enhancement measures**, increasing **daily average production by 103 barrels**, effectively curbing the decline trend of old wells[43](index=43&type=chunk) - **Field operating expenses** decreased by **7.7%** to **CAD 7.92 million**, and **administrative expenses** decreased by **14.8%** to **CAD 2.93 million**[43](index=43&type=chunk) [Strengthening Medium-to-Long-Term Planning Research, Supporting Healthy and Sustainable Oilfield Development](index=16&type=section&id=Strengthening%20Medium-to-Long-Term%20Planning%20Research%2C%20Supporting%20Healthy%20and%20Sustainable%20Oilfield%20Development) Novus developed a five-year plan with economic models for various oil price scenarios, exploring carbon capture and AI applications for sustainable development - Conducted a **"Novus Oilfield Five-Year Development Plan Study"**, building economic models under different **WTI oil price scenarios**[44](index=44&type=chunk) - Explored the feasibility of **carbon capture and storage projects** to expand green and low-carbon development[44](index=44&type=chunk) - Explored the application of **AI technology** in oilfield production management[44](index=44&type=chunk) [Actively Expanding Mineral Rights Area, Enhancing Company's Resource Security Capability](index=16&type=section&id=Actively%20Expanding%20Mineral%20Rights%20Area%2C%20Enhancing%20Company%27s%20Resource%20Security%20Capability) Novus evaluated non-core blocks and proposed a Wapiti block disposal plan to optimize asset structure and enhance resource diversity and risk resilience - Proposed a **Wapiti block disposal plan** to optimize asset structure and enhance resource diversity and risk resilience[45](index=45&type=chunk) [Strictly Managing Safety Production, Fully Fulfilling Environmental Compliance Obligations](index=17&type=section&id=Strictly%20Managing%20Safety%20Production%2C%20Fully%20Fulfilling%20Environmental%20Compliance%20Obligations) Novus prioritized safety by strengthening management and training, while strictly complying with Canadian environmental laws, implementing emission reductions, and remediating abandoned wells - Strengthened **on-site safety management systems** and regularly conducted **employee safety training and emergency drills**[46](index=46&type=chunk) - Strictly complied with **Canadian environmental laws and regulations**, actively implemented **emission reduction responsibilities**, and pre-built **natural gas pipelines** to reduce flaring emissions[46](index=46&type=chunk) - Diligently fulfilled **abandoned well remediation responsibilities**, completing government-assigned tasks on schedule[46](index=46&type=chunk) [China Oil Products Sales Downstream Business](index=17&type=section&id=China%20Oil%20Products%20Sales%20Downstream%20Business) Henan YanChang's retail and external sales businesses faced reduced profits and sales due to market pressures, resulting in a 36% sales volume drop, 41% revenue decrease, and RMB 2.1 million net profit - **Henan YanChang's total sales volume** in H1 was **1.3614 million tonnes**, a **36% year-on-year decrease**; **operating revenue** was **RMB 9.062 billion**, a **41% year-on-year decrease**; and **net profit** was **RMB 2.1 million**[47](index=47&type=chunk) - **Retail business** experienced **narrow profits and decreased sales** due to price adjustments, price caps, price wars, and new energy alternatives[47](index=47&type=chunk) - **External procurement and sales business** scaled down due to the **exclusion of risky businesses** and **reduced centralized procurement by Sinopec**[47](index=47&type=chunk) [Steady and Effective Business Advancement](index=17&type=section&id=Steady%20and%20Effective%20Business%20Advancement) Henan YanChang expanded its retail membership to 110,000, explored fixed investment and LNG businesses, and developed new merchants, laying groundwork for future growth - Promoted **retail membership system construction**, reaching **110,000 members**, with **3,000 new enterprise WeChat members**[48](index=48&type=chunk) - Actively organized research on **Sinopec Shiyan area gas station fixed investment business** and engaged in fixed investment business with **private customers**[48](index=48&type=chunk) - Conducted **LNG business feasibility studies**, laying the foundation for future business development[49](index=49&type=chunk) [Strengthened Business Assurance](index=18&type=section&id=Strengthened%20Business%20Assurance) Henan YanChang optimized personnel, streamlined processes, and reformed its retail system, while securing tax reductions totaling RMB 40.2 thousand through various initiatives - Completed open selection and appointment of **10 department heads, 8 deputy department heads**, and dual-choice positions for **157 grassroots employees**[50](index=50&type=chunk) - Optimized **authority and responsibility processes**, implemented **SOPs**, focusing on optimizing modules such as merchant management, logistics management, and external warehouse management[50](index=50&type=chunk) - Successfully secured a **2% reduction in urban construction tax rate** and **simplified collection for warehousing services**, saving **RMB 14.2 thousand** and **RMB 12.1 thousand** in taxes in H1[50](index=50&type=chunk) [Continuously Consolidating Safety Foundation](index=18&type=section&id=Continuously%20Consolidating%20Safety%20Foundation) Henan YanChang achieved a low-risk safety rating for its storage base, hosted emergency drills, and completed 1,551 safety trainings with 100% frontline employee coverage - Large oil and gas storage base safety risk self-assessment scored **910 points**, rated as **low risk**[51](index=51&type=chunk) - Hosted a **comprehensive emergency rescue drill** for hazardous chemical production safety accidents in Xinzheng City[51](index=51&type=chunk) - Conducted **1,551 safety production training sessions** in H1, with **100% coverage for frontline employees**; all **185 safety hazards** have been rectified[51](index=51&type=chunk) [Outlook](index=19&type=section&id=Outlook) Global energy market uncertainty and geopolitical factors will constrain oil prices in H2; the company plans to innovate, optimize sales, and diversify for sustainable growth - **Global energy market uncertainty** remains high in H2, with **geopolitical conflicts** and **slowing global economic growth** continuing to impact oil prices[52](index=52&type=chunk) - The Company will deepen **technological innovation in exploration and development** to improve **oil and gas resource recovery efficiency**[53](index=53&type=chunk) - Adhere to a **diversified development strategy**, exploring new businesses to achieve **sustainable development**[53](index=53&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) [Segment Revenue and Results](index=19&type=section&id=Segment%20Revenue%20and%20Results) Group revenue from Canadian oil and gas (now a loss) and China oil product trading (now a profit) saw significant declines in sales volume and revenue - **Novus's oil and natural gas sales volume** was **263,010 barrels of oil equivalent**, with **revenue of HKD 94,132 thousand**, representing year-on-year decreases of **42.4%** and **50.2%** respectively[54](index=54&type=chunk) - **Novus** generated an **operating loss of HKD 34,261 thousand**, compared to an **operating profit of HKD 7,932 thousand** in the prior year[54](index=54&type=chunk) - **China oil product trading business sales volume** decreased from **2.13 million tonnes** to **1.36 million tonnes**, and **revenue** decreased from **HKD 16,582,456 thousand** to **HKD 9,900,386 thousand**[55](index=55&type=chunk) [Other Income](index=20&type=section&id=Other%20Income) Other income decreased by HKD 1,922 thousand to HKD 3,560 thousand, mainly from bank interest, fuel card income, and rent - **Other income** was **HKD 3,560 thousand**, a year-on-year decrease of **HKD 1,922 thousand**, primarily from **bank interest, fuel card income, and rent**[56](index=56&type=chunk) [Royalty Fees](index=20&type=section&id=Royalty%20Fees) Royalty fees decreased by 28.53% to HKD 15,574 thousand, primarily due to reduced Novus revenue - **Royalty fees** were **HKD 15,574 thousand**, a year-on-year decrease of **28.53%**, mainly due to reduced **Novus revenue**[57](index=57&type=chunk) [Oilfield Operating Expenses](index=20&type=section&id=Oilfield%20Operating%20Expenses) Oilfield operating expenses decreased by 7.13% to HKD 45,495 thousand, primarily due to reduced Novus production and sales volume - **Oilfield operating expenses** were **HKD 45,495 thousand**, a year-on-year decrease of **7.13%**, primarily due to reduced **Novus production and sales volume**[58](index=58&type=chunk) [Exploration and Evaluation Expenses](index=20&type=section&id=Exploration%20and%20Evaluation%20Expenses) Exploration and evaluation expenses were HKD 1,271 thousand, mainly holding costs for Novus's non-producing land interests - **Exploration and evaluation expenses** were **HKD 1,271 thousand**, primarily representing holding costs for **Novus's non-producing land interests**[59](index=59&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses significantly decreased by 61.00% to HKD 7,033 thousand, mainly from Henan YanChang's oil trading business - **Selling and distribution expenses** were **HKD 7,033 thousand**, a year-on-year decrease of **61.00%**, primarily from **Henan YanChang's oil product trading business**[60](index=60&type=chunk) [Administrative Expenses](index=20&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 8.32% to HKD 34,312 thousand, covering directors' emoluments, staff salaries, office rent, and professional fees - **Administrative expenses** were **HKD 34,312 thousand**, a year-on-year decrease of **8.32%**[61](index=61&type=chunk) [Depreciation, Depletion and Amortization](index=20&type=section&id=Depreciation%2C%20Depletion%20and%20Amortization) Depreciation, depletion, and amortization expenses decreased by 38.17% to HKD 59,755 thousand, mainly due to reduced Novus production and sales volume - **Depreciation, depletion and amortization expenses** were **HKD 59,755 thousand**, a year-on-year decrease of **38.17%**, primarily due to reduced **Novus production and sales volume**[62](index=62&type=chunk) [Other Gains and Losses - Financial Review](index=21&type=section&id=Other%20Gains%20and%20Losses-Financial%20Review) The Group recorded other gains of HKD 24,577 thousand, primarily net exchange gains, contrasting with a prior year loss - **Other gains** were **HKD 24,577 thousand**, representing **net exchange gains**, compared to a loss in the prior year[63](index=63&type=chunk) [Finance Costs - Financial Review](index=21&type=section&id=Finance%20Costs-Financial%20Review) Total finance costs were HKD 18,166 thousand, slightly higher than prior year, including interest on bank borrowings, secured loans, and lease liabilities - **Finance costs** were **HKD 18,166 thousand**, slightly higher than the prior year, primarily including interest on **bank borrowings, secured term loans, lease liabilities, other loans, and abandonment provision**[64](index=64&type=chunk) [Taxation](index=21&type=section&id=Taxation) The Group recorded a HKD 770 thousand tax credit, mainly from China enterprise income tax over-provision offsetting Hong Kong profits tax under-provision - **Tax credit** of **HKD 770 thousand**, primarily from an **over-provision of HKD 796 thousand** for China enterprise income tax, offsetting an **under-provision of HKD 26 thousand** for Hong Kong profits tax[65](index=65&type=chunk) [Loss for the Period](index=21&type=section&id=Loss%20for%20the%20Period) The Group's overall loss was HKD 27,847 thousand, with Novus incurring a HKD 28,250 thousand loss, while Henan YanChang maintained a HKD 2,300 thousand profit - The Group's **loss for the period** was **HKD 27,847 thousand**, with **Novus** incurring a **HKD 28,250 thousand loss**, and **Henan YanChang** maintaining a **HKD 2,300 thousand profit**[66](index=66&type=chunk) [Liquidity and Financial Resources](index=21&type=section&id=Liquidity%20and%20Financial%20Resources) The Group funds operations via internal resources and loans; cash was HKD 240,015 thousand, gearing 116.1%, and current ratio 81.0%, indicating increased liquidity pressure - The Group primarily funds its operations through **internal resources, bank borrowings, unsecured other loans, and secured term loans**[67](index=67&type=chunk) - As of June 30, 2025, **cash and bank balances** were **HKD 240,015 thousand**, a decrease from **HKD 278,675 thousand** at the end of 2024[70](index=70&type=chunk) - **Gearing ratio** was **116.1%**, **current ratio** was **81.0%**, lower than **107.0%** at the end of 2024, indicating **increased liquidity pressure**[70](index=70&type=chunk) [Treasury Management and Policies](index=22&type=section&id=Treasury%20Management%20and%20Policies) The Group employs prudent cash management to minimize currency and interest rate risks, holding cash in multiple currencies without hedging, but will act if needed - The Group adopts **prudent cash management and risk monitoring policies** aimed at minimizing **foreign currency exchange rate and interest rate fluctuation risks**[71](index=71&type=chunk) - Cash is primarily held in **short-term deposits** denominated in **HKD, USD, CAD, and RMB**[71](index=71&type=chunk) - The Group has **not undertaken foreign exchange hedging transactions**, but management will take measures when deemed appropriate[71](index=71&type=chunk) [Material Acquisitions and Disposals](index=22&type=section&id=Material%20Acquisitions%20and%20Disposals) The Group had no material acquisitions or disposals during the six months ended June 30, 2025 - The Group had **no material acquisitions or disposals** in H1 2025[72](index=72&type=chunk) [Material Investments](index=23&type=section&id=Material%20Investments) The Group held no material investments as of June 30, 2025 - The Group held **no material investments** as of June 30, 2025[73](index=73&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) Capital commitments totaled HKD 462 thousand for property, plant, and equipment purchases, contracted but not yet provided for - **Capital commitments** amounted to **HKD 462 thousand**, related to the purchase of **property, plant and equipment**, contracted but not yet provided for[74](index=74&type=chunk) [Pledge of Assets](index=23&type=section&id=Pledge%20of%20Assets) Novus's secured term loan is collateralized by debentures and a floating charge, while the Company's loan is guaranteed by 70% of Henan YanChang's issued share capital - **Novus's USD 35 million secured term loan** is collateralized by **USD 70 million debentures** and a **floating charge over all Novus's assets**[75](index=75&type=chunk) - The Company's **USD 22 million secured term loan** is guaranteed by **70% of Henan YanChang's issued share capital**[75](index=75&type=chunk) [Contingent Liabilities - Financial Review](index=23&type=section&id=Contingent%20Liabilities-Financial%20Review) The Group had no significant contingent liabilities as of June 30, 2025 - The Group had **no significant contingent liabilities** as of June 30, 2025[77](index=77&type=chunk) [Bankruptcy Progress of a Non-Wholly Owned Chinese Subsidiary](index=23&type=section&id=Bankruptcy%20Progress%20of%20a%20Non-Wholly%20Owned%20Chinese%20Subsidiary) A 51%-owned Chinese subsidiary was declared bankrupt in June 2025, but its non-consolidation since 2023 means no material impact on the Group - **YanChang Petroleum (Zhejiang Free Trade Zone) Co., Ltd.** was declared **bankrupt** and its liquidation procedures terminated in **June 2025**[78](index=78&type=chunk) - The subsidiary ceased to be consolidated in **2023**, so its bankruptcy has **no material impact** on the Group's current operations, performance, or financial position[78](index=78&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) [Employees and Remuneration Policy](index=24&type=section&id=Employees%20and%20Remuneration%20Policy) The Group had 203 employees with total staff costs of HKD 38,767 thousand (up 9.92%), guided by fair, incentive-based remuneration policies, and no share options granted - The Group had a total of **203 employees**, with **total staff costs of HKD 38,767 thousand**, a year-on-year increase of **9.92%**[79](index=79&type=chunk) - Remuneration policy is based on **fairness, incentives, performance, and market practices**, providing benefits such as **provident funds and medical insurance**[79](index=79&type=chunk) - **No share options** were granted in H1 2025[79](index=79&type=chunk) [Interim Dividend - Other Information](index=24&type=section&id=Interim%20Dividend-Other%20Information) The Board does not recommend any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an **interim dividend** for H1 2025[80](index=80&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities in H1 2025 - The Group did **not purchase, sell, or redeem any listed securities** in H1 2025[81](index=81&type=chunk) [Corporate Governance Practices](index=24&type=section&id=Corporate%20Governance%20Practices) The Board adheres to high corporate governance standards, largely complying with Listing Rules, but notes deviations in independent director tenure, meeting attendance, and role separation - The Board is committed to **high standards of corporate governance**, aiming to enhance **transparency, independence, accountability, responsibility, and fairness**[82](index=82&type=chunk) - **Independent non-executive directors** have served for **over nine years**, and the Company is seeking new candidates[82](index=82&type=chunk) - **Non-executive Director Ms. Lu Yiwen** did **not attend the Annual General Meeting**[85](index=85&type=chunk) - The roles of **Chairman and Chief Executive** are **not separated**, but the Board believes the balance of power under existing arrangements is not impaired[85](index=85&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviewed the Company's accounting principles and interim financial statements - The **Audit Committee**, comprising **three independent non-executive directors**, has reviewed the Company's **accounting principles, policies, and interim financial statements**[83](index=83&type=chunk) [Continuing Connected Transactions](index=25&type=section&id=Continuing%20Connected%20Transactions) The Group has continuing connected transactions, mainly for petroleum product procurement and sales with related parties, complying with Listing Rules Chapter 14A - **Henan YanChang** has **continuing connected transactions** with **YanChang Petroleum Group** and its fellow subsidiaries for the **procurement and sale of refined oil and by-products**[84](index=84&type=chunk)[86](index=86&type=chunk) - **Disclosure requirements** of **Listing Rules Chapter 14A** have been complied with[87](index=87&type=chunk) [Standard Code for Securities Transactions by Directors](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Listing Rules Appendix 10 Standard Code, and all Directors confirmed compliance for H1 2025 - The Company has adopted the **Standard Code** as set out in **Listing Rules Appendix 10**, and Directors confirmed compliance[88](index=88&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=26&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement is published on HKEX and company websites; the interim report will be dispatched to shareholders and posted online - The **interim results announcement** has been published on the **HKEX website and the Company's website**[89](index=89&type=chunk) - The **interim report** will be dispatched to shareholders and posted on the websites in due course[89](index=89&type=chunk) [By Order of the Board](index=26&type=section&id=By%20Order%20of%20the%20Board) This announcement is published by Mr. Feng Yinguo, Chairman of the Board, on behalf of the Board, listing all directors - The announcement is published by **Mr. Feng Yinguo, Chairman of the Board**, on behalf of the Board[90](index=90&type=chunk)

[Company Information and Forward-Looking Statements](index=1&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) [Company Profile](index=1&type=section&id=Company%20Profile) Mabpharm Limited focuses on the R&D and industrialization of new drugs and biosimilars for cancer and autoimmune diseases - Mabpharm Limited released its unaudited consolidated financial results for the six months ended June 30, 2025[3](index=3&type=chunk) - The company's main business is the R&D, development, manufacturing, and intellectual property transfer of monoclonal antibody drugs for cancer and autoimmune diseases[92](index=92&type=chunk) [Forward-Looking Statements](index=1&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements involving risks and uncertainties that may cause actual results to differ materially from expectations - This announcement contains forward-looking statements that involve known and unknown risks and uncertainties[2](index=2&type=chunk) - Actual results, performance, or achievements may differ materially from those expressed in the forward-looking statements[2](index=2&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements[2](index=2&type=chunk) [Interim Results Summary](index=2&type=section&id=Interim%20Results%20Summary) [Consolidated Financial Performance Overview](index=2&type=section&id=Consolidated%20Financial%20Performance%20Overview) The company achieved a significant turnaround, with revenue growing 152.7% to RMB 274 million and recording a profit of RMB 2.9 million Key Financial Data for H1 2025 (RMB in thousands) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 274,183 | 108,483 | 152.7 | | Cost of sales | (32,938) | (14,127) | 133.2 | | Gross profit | 241,245 | 94,356 | 155.7 | | R&D expenses | (23,809) | (56,293) | (57.7) | | Administrative expenses | (51,366) | (60,651) | (15.3) | | Profit/(loss) before tax | 2,898 | (97,569) | (103.0) | | Total profit/(loss) for the period | 2,898 | (97,569) | (103.0) | | Net assets | 98,863 | 88,934 | 11.2 | | Net current assets | 27,290 | 53,649 | (49.1) | - The company achieved profitability with a **152.7% year-over-year increase in revenue**, primarily driven by new drug launches and sales promotion[5](index=5&type=chunk) [Business Overview and Core Products](index=3&type=section&id=Business%20Overview%20and%20Core%20Products) [Corporate Strategy and Core Competencies](index=3&type=section&id=Corporate%20Strategy%20and%20Core%20Competencies) Mabpharm is a leading biopharmaceutical company in China focusing on innovative and biosimilar drugs for cancer and autoimmune diseases - The company is a leading biopharmaceutical company in China, specializing in the R&D and industrialization of new drugs and biosimilars for cancer and autoimmune diseases[5](index=5&type=chunk) - It is committed to providing high-quality, affordable innovative biopharmaceuticals through an efficient R&D system and low-cost manufacturing capabilities[5](index=5&type=chunk) - The industrialization business has entered a high-growth phase with the launch and promotion of new drugs[5](index=5&type=chunk) [Core Products and Market Performance](index=3&type=section&id=Core%20Products%20and%20Market%20Performance) The company's three core products, CMAB009, CMAB007, and CMAB008, have achieved significant market progress and sales growth - The company's drug pipeline includes 9 monoclonal antibody drugs and 1 potent antibody drug, with 3 approved as core products[5](index=5&type=chunk) - Core products **CMAB009, CMAB007, and CMAB008** have all been approved for marketing and included in the National Reimbursement Drug List, achieving substantial sales volume growth[5](index=5&type=chunk)[9](index=9&type=chunk) - The company is actively expanding new indications and overseas markets for its core products, with CMAB008 approved for sale in several foreign countries[6](index=6&type=chunk)[11](index=11&type=chunk) [CMAB009 Enlituo® (Cetuximab beta for Injection)](index=3&type=section&id=CMAB009%20Enlituo%C2%AE%20(Cetuximab%20beta%20for%20Injection)) CMAB009 is the first domestically developed anti-EGFR monoclonal antibody innovative drug, showing superior safety and rapid sales growth - CMAB009 Enlituo® was approved by the NMPA in June 2024 for the first-line treatment of RAS/BRAF wild-type metastatic colorectal cancer[5](index=5&type=chunk) - As the first self-developed EGFR-targeting antibody new drug launched in China in nearly two decades, it demonstrates significant clinical efficacy and better safety (no black box warning)[5](index=5&type=chunk) - It has been successfully included in the National Reimbursement Drug List, with **sales volume increasing by more than 10 times** compared to the previous six months[5](index=5&type=chunk)[6](index=6&type=chunk) [CMAB007 Omasu® (Omalizumab α for Injection)](index=4&type=section&id=CMAB007%20Omasu%C2%AE%20(Omalizumab%20%CE%B1%20for%20Injection)) CMAB007 is China's first domestically produced therapeutic antibody for allergic asthma, with sales steadily increasing post-launch - CMAB007 Omasu® was approved in May 2023 as China's first domestically produced therapeutic antibody new drug for allergic asthma[7](index=7&type=chunk) - A Phase III clinical trial for chronic spontaneous urticaria has been initiated[7](index=7&type=chunk) - As an exclusive product listed in the National Reimbursement Drug List, its **sales volume increased by 4.8%** compared to the previous six months[9](index=9&type=chunk) [CMAB008 Class-Stop® (Infliximab for Injection)](index=5&type=section&id=CMAB008%20Class-Stop%C2%AE%20(Infliximab%20for%20Injection)) CMAB008 is approved for six indications and is expanding into international markets, with significant sales growth - CMAB008 Class-Stop® was approved in July 2021 for six indications and is automatically included in the medical insurance list[9](index=9&type=chunk) - During the reporting period, **sales volume increased by 31.8%** compared to the previous six months, indicating effective market promotion[10](index=10&type=chunk) - Registration and expansion efforts have been initiated in over thirty countries, with sales approval granted in Peru, Indonesia, Pakistan, and Bangladesh[11](index=11&type=chunk) [R&D Pipeline and Production Capacity](index=6&type=section&id=R&D%20Pipeline%20and%20Production%20Capacity) [Overview of Drug Candidate R&D](index=8&type=section&id=Overview%20of%20Drug%20Candidate%20R&D) The company maintains a rich pipeline of drug candidates across multiple therapeutic areas, advancing them toward regulatory approval - The company's pipeline covers cancer, respiratory diseases, autoimmune diseases, bone-related diseases, and inflammatory diseases[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - Core products CMAB009, CMAB007, and CMAB008 are on the market, and an NDA has been submitted for CMAB807/CMAB807X[20](index=20&type=chunk)[21](index=21&type=chunk) Development Status of Major Drug Candidates | Area | Target | Candidate Code | Category | Clinical Stage | Est. Next Milestone | Est. Regulatory Approval | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cancer | EGFR | CMAB009 | New Drug/Core Product | Marketed | Approved June 2024 | - | | Respiratory | IgE | CMAB007 | New Drug/Core Product | Marketed | Approved May 2023 | - | | Autoimmune | TNFα | CMAB008 | Biosimilar/Core Product | Marketed | Approved July 2021 | - | | Bone-related | RANKL | CMAB807/CMAB807X | Biosimilar | Phase III | NDA Submitted Jan 2025 | Q2 2026 | | Cancer | Non-PD1 | CMAB819 | Biosimilar | Phase I | Int'l Registration Trial 2026 | Q3 2029 | | Cancer | EGFR | CMAB017 | Innovative Drug | Phase I | Phase II Q3 2026 | Q2 2030 | | Autoimmune | IL-17A | CMAB015 | Biosimilar | Phase III | NDA Submission Q2 2026 | Q4 2027 | | Inflammatory | IL-12 & IL-23 | CMAB022 | Biosimilar | Pre-clinical | IND Submission Q3 2026 | Q4 2030 | | Asthma/Allergy | TSLP | CMAB023 | Biosimilar | Pre-clinical | IND Submission Q4 2026 | Q2 2030 | | Autoimmune | IL-4Rα | CMAB016 | Biosimilar | Pre-clinical | IND Submission Q3 2026 | Q2 2029 | [Other Major Drug Candidates](index=6&type=section&id=Other%20Major%20Drug%20Candidates) The company's pipeline includes multiple promising candidates in various clinical stages, targeting significant market opportunities - **CMAB807/CMAB807X (Denosumab)** has completed Phase III trials and an NDA has been submitted, with approval for osteoporosis and other indications expected in Q2 2026[13](index=13&type=chunk)[36](index=36&type=chunk) - Innovative drug **CMAB017 (anti-EGFR potent antibody)** has initiated Phase I clinical studies for advanced solid tumors, with approval expected in Q2 2030[13](index=13&type=chunk)[37](index=37&type=chunk) - **CMAB015 (Secukinumab biosimilar)** is nearing completion of Phase III trials, with approval for psoriasis and other conditions expected in Q4 2027[13](index=13&type=chunk)[39](index=39&type=chunk) - **CMAB819 (Nivolumab biosimilar)** has completed Phase I trials, with approval for various cancers expected in Q3 2029[40](index=40&type=chunk) - **CMAB022 (Ustekinumab biosimilar)** is undergoing process scale-up, with approval for inflammatory diseases like psoriasis expected in Q4 2030[40](index=40&type=chunk)[41](index=41&type=chunk) - **CMAB023 (anti-TSLP monoclonal antibody biosimilar)** is in process development, with approval as a broad-spectrum anti-allergic drug expected in Q2 2030[41](index=41&type=chunk) - **CMAB016 (Dupilumab biosimilar)** has completed initial process research, with approval for atopic dermatitis and asthma expected in Q2 2029[41](index=41&type=chunk) [New Candidate R&D and System](index=18&type=section&id=New%20Candidate%20R&D%20and%20R&D%20System) The company leverages its experienced R&D team and core technology patents to develop new antibody drugs and bifunctional proteins - The company has initiated R&D on a series of new antibody drugs, bifunctional antibodies, and bifunctional proteins for autoimmune diseases and tumors[42](index=42&type=chunk) - The company possesses efficient R&D capabilities, advanced preparation technologies, and low-cost drug production capacity[43](index=43&type=chunk) - The R&D team has over 20 years of experience and holds core technology patents in antibody engineering, humanization, and high-expression vector construction[14](index=14&type=chunk)[43](index=43&type=chunk) [Commercialization and Production Facilities](index=18&type=section&id=Commercialization%20and%20Production%20Facilities) The company operates two GMP-certified production bases in Taizhou with a total cell reactor capacity of 40,000L and is expanding its CDMO business - The company has two production bases in Taizhou; the G79 base has four 1,500L antibody bioreactor systems and has passed GMP compliance inspections[44](index=44&type=chunk) - The Xiangtailu production base has added a new 7,500L GMP drug substance production line, bringing the **total cell reactor capacity to 40,000L**[45](index=45&type=chunk) - The company is actively expanding its CDMO business and signed an industrial-scale CDMO contract in 2025[15](index=15&type=chunk)[46](index=46&type=chunk) [Market Strategy and Future Outlook](index=19&type=section&id=Market%20Strategy%20and%20Future%20Outlook) [Market Development and Marketing](index=19&type=section&id=Market%20Development%20and%20Marketing) The company leverages its competitive advantages to capitalize on national healthcare reform opportunities while actively expanding its global market presence - The company will leverage its advantages in technology, quality, and cost to participate in national healthcare reform and seize market opportunities[46](index=46&type=chunk) - Global market expansion is underway, with **CMAB008** registration initiated in over thirty countries and sales approved in Peru, Indonesia, Pakistan, and Bangladesh[46](index=46&type=chunk) - Products are sold to hospitals and pharmacies through a distributor network, with inventory levels actively monitored to improve efficiency[47](index=47&type=chunk) [Quality Management System](index=20&type=section&id=Quality%20Management%20System) An effective quality management system is in place to ensure all products and services meet high industry and GMP standards - The company has established an effective quality management system covering raw materials, equipment, and finished products to ensure service quality[48](index=48&type=chunk) - A corporate-level quality assurance department is responsible for inspecting product quality and coordinating quality control procedures[48](index=48&type=chunk) - Manufacturing and R&D operations are inspected according to China's national laboratory quality control standards and GMP regulations[48](index=48&type=chunk) [Future Development and Strategy](index=20&type=section&id=Future%20Development%20and%20Strategy) The company's strategy focuses on capitalizing on healthcare reform, advancing its pipeline, investing in technology, and expanding global partnerships - The company will seize opportunities from China's healthcare reform, focusing on gastroenterology, respirology, rheumatology, and oncology markets[50](index=50&type=chunk) - In the short term, the focus will be on the market development of **CMAB008, CMAB007, and CMAB009**, and completing the commercialization of CMAB807/CMAB807X and CMAB015[52](index=52&type=chunk) - The company plans to continue investing in advanced technology and product development, and to attract and retain high-caliber talent[53](index=53&type=chunk)[54](index=54&type=chunk) - The company plans to expand its overseas market presence through partnerships with renowned domestic and international pharmaceutical companies[55](index=55&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) [Operating Performance Analysis](index=23&type=section&id=Operating%20Performance%20Analysis) The company's operating performance improved significantly, achieving a turnaround to profitability driven by strong revenue growth and controlled expenses - **Revenue increased by 152.7%** to RMB 274.2 million, driven by solid growth in drug sales and exclusive promotion rights income in mainland China[58](index=58&type=chunk) - **Gross profit grew by 155.7%** to RMB 241.2 million, with the gross profit margin maintained at 88%[60](index=60&type=chunk) - **Profit for the period was RMB 2.9 million**, a significant turnaround from a loss of RMB 97.6 million in the same period last year[72](index=72&type=chunk) [Revenue](index=24&type=section&id=Revenue) Revenue for the six months ended June 30, 2025, reached RMB 274.2 million, a year-over-year increase of 152.7% Revenue Breakdown (RMB in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Sales of pharmaceutical products | 249,002 | 98,532 | | Exclusive promotion right income in mainland China | 21,804 | 9,951 | | Sales of materials | 3,186 | – | | Contract service income | 191 | – | | **Total** | **274,183** | **108,483** | - Revenue increased by 152.7% year-over-year, primarily due to growth in pharmaceutical sales and exclusive promotion right income[58](index=58&type=chunk) [Cost of Sales](index=24&type=section&id=Cost%20of%20Sales) The cost of sales increased by 133.2% to RMB 32.9 million, mainly due to a higher volume of pharmaceutical products sold - Cost of sales increased by 133.2% from RMB 14.1 million to RMB 32.9 million[59](index=59&type=chunk) - The increase was primarily due to the higher volume of pharmaceutical products sold during the reporting period[59](index=59&type=chunk) [Gross Profit and Gross Profit Margin](index=24&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit grew by 155.7% to RMB 241.2 million, while the gross profit margin remained stable at 88% - Gross profit increased by 155.7% from RMB 94.4 million to RMB 241.2 million[60](index=60&type=chunk) - The gross profit margin remained stable at 88%, as revenue and cost of sales increased proportionally[60](index=60&type=chunk) [Other Income](index=24&type=section&id=Other%20Income) Other income surged by 357.3% to RMB 6.0 million, mainly from increased government grants and VAT super-credit deductions Other Income Breakdown (RMB in thousands) | Income Source | 2025 | 2024 | | :--- | :--- | :--- | | Bank interest income | 245 | 215 | | Government grants and subsidies related to income | 4,058 | 1,095 | | VAT super-credit deduction | 1,710 | – | | Others | – | 5 | | **Total** | **6,013** | **1,315** | - Other income increased by 357.3%, primarily due to higher government grants and VAT super-credit deductions[61](index=61&type=chunk) [Other Gains and Losses](index=25&type=section&id=Other%20Gains%20and%20Losses) The loss from other gains and losses increased by 5.6% to RMB 0.6 million, driven by impairment losses on receivables Other Gains and Losses Breakdown (RMB in thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net foreign exchange gains/(losses) | 55 | (454) | | Fair value gains on financial assets at FVTPL | 7 | 115 | | Impairment losses on prepayments and other receivables | (613) | (58) | | Others | – | (125) | | **Total** | **(551)** | **(522)** | - The loss from other gains and losses increased by 5.6% to RMB 0.6 million, as foreign exchange gains were offset by impairment losses on receivables[63](index=63&type=chunk) [R&D Expenses](index=25&type=section&id=R&D%20Expenses) R&D expenses decreased significantly by 57.7% to RMB 23.8 million, mainly due to the capitalization of three R&D products R&D Expenses Breakdown (RMB in thousands) | Expense Item | 2025 | 2024 | | :--- | :--- | :--- | | Contract costs | 2,568 | 20,887 | | Raw materials and consumables | 5,049 | 8,464 | | Employee costs | 11,273 | 17,385 | | Depreciation | 2,341 | 6,584 | | Others | 2,578 | 2,973 | | **Total** | **23,809** | **56,293** | - **R&D expenses decreased by 57.7%** to RMB 23.8 million, primarily because three R&D products were capitalized[65](index=65&type=chunk) [Administrative Expenses](index=26&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 15.3% to RMB 51.4 million, driven by lower employee costs and reduced depreciation Administrative Expenses Breakdown (RMB in thousands) | Expense Item | 2025 | 2024 | | :--- | :--- | :--- | | Employee costs | 21,448 | 27,417 | | Depreciation | 17,199 | 20,371 | | Others | 12,719 | 12,863 | | **Total** | **51,366** | **60,651** | - Administrative expenses decreased by 15.3% to RMB 51.4 million, mainly due to lower employee costs and depreciation[67](index=67&type=chunk) [Finance Costs](index=27&type=section&id=Finance%20Costs) Finance costs remained stable at RMB 5.4 million, consisting mainly of interest on bank and other borrowings Finance Costs Breakdown (RMB in thousands) | Cost Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on loans from a related party | 205 | 421 | | Interest on bank and other borrowings | 4,082 | 3,651 | | Interest on lease liabilities | 1,138 | 1,346 | | **Total** | **5,425** | **5,418** | - Finance costs increased by 0.1% to RMB 5.4 million, remaining stable compared to the prior period[70](index=70&type=chunk) [Profit/Loss for the Period](index=27&type=section&id=Profit/Loss%20for%20the%20Period) The company achieved a turnaround, recording a profit attributable to owners of RMB 2.9 million compared to a loss last year - Profit attributable to owners of the Company was **RMB 2.9 million**, a significant improvement from the loss of RMB 97.6 million in the prior period[72](index=72&type=chunk) - The turnaround was primarily attributable to increased gross profit and decreased R&D expenses[72](index=72&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Trade receivables and inventories increased significantly by 53.8% and 31.3% respectively, reflecting higher sales and future demand expectations Analysis of Liquidity and Capital Resources (RMB in thousands) | Item | June 30, 2025 | Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 145,335 | 94,526 | 53.8 | | Prepayments and other receivables | 24,681 | 31,554 | (21.8) | | Inventories | 145,782 | 111,009 | 31.3 | | Cash and bank balances | 94,162 | 89,344 | 5.4 | | Restricted bank deposits | – | 39,341 | (100.0) | | **Total** | **410,298** | **365,774** | **12.2** | - **Trade receivables increased by 53.8%** to RMB 145.3 million, mainly due to a substantial increase in drug sales volume[73](index=73&type=chunk) - **Inventories increased by 31.3%** to RMB 145.8 million, primarily in anticipation of higher drug demand in the second half of the year[73](index=73&type=chunk) [Indebtedness Structure](index=28&type=section&id=Indebtedness%20Structure) As of June 30, 2025, total debt comprised lease liabilities and interest-bearing borrowings, with related party loans fully repaid Breakdown of Indebtedness (RMB in thousands) | Debt Type | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Lease liabilities | 48,561 | 47,501 | | Interest-bearing bank and other borrowings | 256,449 | 245,591 | | Loans from a related party | – | 18,500 | - As of June 30, 2025, the company had **fully repaid its loans from a related party**[75](index=75&type=chunk) - The existing debt does not contain any material covenants or covenants that could limit the company's ability to incur further debt[75](index=75&type=chunk) [Contingent Liabilities, Pledge of Assets, and Guarantees](index=29&type=section&id=Contingent%20Liabilities,%20Pledge%20of%20Assets,%20and%20Guarantees) The company has pledged land, buildings, and equipment with a total carrying value of RMB 384.3 million to secure loans - The company pledged land and buildings with carrying values of approximately RMB 33.2 million and RMB 156.8 million, respectively, to secure bank loans of RMB 80.0 million[77](index=77&type=chunk) - Equipment with a carrying value of RMB 194.3 million was pledged to secure an entrusted loan of RMB 100.1 million[77](index=77&type=chunk) - Apart from those disclosed, the company had no other material contingent liabilities, mortgages, or similar indebtedness[78](index=78&type=chunk) [Capital Structure and Foreign Exchange Risk](index=29&type=section&id=Capital%20Structure%20and%20Foreign%20Exchange%20Risk) The company's capital structure improved slightly with a higher equity ratio, while it faces foreign exchange risks from HKD and USD - As of June 30, 2025, the company's capital structure consisted of **90.7% debt and 9.3% equity**, showing a slight increase in the equity portion[79](index=79&type=chunk) - The company is exposed to foreign exchange risks arising from HKD and USD, which are managed by closely monitoring the market[80](index=80&type=chunk) - During the reporting period, the company did not enter into any currency hedging transactions[80](index=80&type=chunk) [Gearing Ratio and Liquidity Ratios](index=30&type=section&id=Gearing%20Ratio%20and%20Liquidity%20Ratios) The gearing ratio slightly decreased to 90.7%, while liquidity and quick ratios declined due to increased current liabilities - As of June 30, 2025, the **gearing ratio was 90.7%**, down from 91.2% at the end of 2024[81](index=81&type=chunk) Key Financial Ratios | Ratio | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Current ratio | 1.1 | 1.2 | | Quick ratio | 0.7 | 0.8 | - The current and quick ratios decreased, mainly due to an increase in current liabilities from accrued marketing service fees[84](index=84&type=chunk) [Condensed Consolidated Interim Financial Statements](index=31&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=31&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The company reported a profit of RMB 2,898 thousand for the period, a significant turnaround from the prior year's loss Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB in thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 274,183 | 108,483 | | Gross profit | 241,245 | 94,356 | | R&D expenses | (23,809) | (56,293) | | Administrative expenses | (51,366) | (60,651) | | Profit/(loss) before tax | 2,898 | (97,569) | | Profit/(loss) and total comprehensive income/(loss) for the period | 2,898 | (97,569) | | Earnings/(loss) per share attributable to ordinary equity holders of the Company - Basic | RMB0.00 | RMB(0.02) | | Earnings/(loss) per share attributable to ordinary equity holders of the Company - Diluted | RMB0.00 | RMB(0.02) | [Consolidated Statement of Financial Position](index=32&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets stood at RMB 1,067,846 thousand, with net assets increasing to RMB 98,863 thousand Summary of Consolidated Statement of Financial Position (RMB in thousands) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total non-current assets | 657,548 | 650,444 | | Total current assets | 410,298 | 365,774 | | Total current liabilities | 383,008 | 312,125 | | Total non-current liabilities | 585,975 | 615,159 | | Net assets | 98,863 | 88,934 | | Total equity | 98,863 | 88,934 | [Consolidated Statement of Changes in Equity](index=33&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased to RMB 98,863 thousand, primarily driven by profit for the period and share-based compensation Summary of Consolidated Statement of Changes in Equity (RMB in thousands) | Item | Share Capital | Share Premium | Other Reserves | Share Option Reserve | Accumulated Losses | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | At Jan 1, 2025 (Audited) | 2,804 | 1,400,504 | (32,763) | 79,010 | (1,360,621) | 88,934 | | Profit and total comprehensive income for the period | – | – | – | – | 2,898 | 2,898 | | Recognition of equity-settled share-based compensation | – | – | – | 7,031 | – | 7,031 | | At June 30, 2025 (Unaudited) | 2,804 | 1,400,504 | (32,763) | 86,041 | (1,357,723) | 98,863 | [Consolidated Statement of Cash Flows](index=34&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The company generated a net cash inflow from operating activities of RMB 43,027 thousand, improving its cash position Summary of Consolidated Statement of Cash Flows (RMB in thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash flows from/(used in) operating activities | 43,027 | (64,177) | | Net cash flows used in investing activities | (24,766) | (12,298) | | Net cash flows used in financing activities | (13,459) | (22,812) | | Net increase/(decrease) in cash and cash equivalents | 4,802 | (99,287) | | Cash and cash equivalents at end of period | 94,162 | 74,066 | [Notes to the Condensed Consolidated Interim Financial Information](index=36&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [General Information](index=36&type=section&id=General%20Information) Mabpharm Limited was incorporated in the Cayman Islands and is listed on the Hong Kong Stock Exchange - The Company was incorporated in the Cayman Islands on June 1, 2018, and listed on the Hong Kong Stock Exchange on May 31, 2019[92](index=92&type=chunk) - The Group is principally engaged in the R&D, manufacturing, and intellectual property transfer of monoclonal antibody drugs for cancer and autoimmune diseases[92](index=92&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=36&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim financial information is prepared in accordance with IAS 34, with accounting policies consistent with the 2024 annual report - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[94](index=94&type=chunk) - The accounting policies adopted are consistent with those of the 2024 annual financial statements, with the first-time adoption of amendments to IAS 21[95](index=95&type=chunk)[96](index=96&type=chunk) - The amendments had no impact on the interim financial information as the Group's transactional and functional currencies are exchangeable[96](index=96&type=chunk) [Operating Segment Information](index=37&type=section&id=Operating%20Segment%20Information) The Group operates as a single reportable segment, with all revenue generated from customers in China - The Group has only one reportable segment as the chief operating decision-maker reviews the consolidated results as a whole for resource allocation[97](index=97&type=chunk) - All revenue during the period was derived from customers in China, and the majority of non-current assets are located in China[98](index=98&type=chunk) - During the reporting period, no single customer accounted for 10% or more of the Group's total revenue[99](index=99&type=chunk) [Revenue Analysis](index=37&type=section&id=Revenue%20Analysis) Total revenue from contracts with customers amounted to RMB 274,183 thousand, primarily from pharmaceutical sales in mainland China Disaggregation of Revenue from Contracts with Customers (RMB in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Sales of pharmaceutical products | 249,002 | 98,532 | | Exclusive promotion right income in mainland China | 21,804 | 9,951 | | Sales of materials | 3,186 | – | | Contract service income | 191 | – | | **Total** | **274,183** | **108,483** | | **Geographical markets** | | | | Mainland China | 274,183 | 108,483 | | **Timing of revenue recognition** | | | | Over time | 21,804 | 9,951 | | At a point in time | 252,379 | 98,532 | [Other Income Analysis](index=38&type=section&id=Other%20Income%20Analysis) Other income totaled RMB 6,013 thousand, mainly comprising government grants and VAT super-credit deductions Other Income Breakdown (RMB in thousands) | Income Source | 2025 | 2024 | | :--- | :--- | :--- | | Bank interest income | 245 | 215 | | Government grants and subsidies related to income | 4,058 | 1,095 | | VAT super-credit deduction benefits | 1,710 | – | | Others | – | 5 | | **Total** | **6,013** | **1,315** | [Other Gains and Losses Analysis](index=39&type=section&id=Other%20Gains%20and%20Losses%20Analysis) Other gains and losses resulted in a net loss of RMB 551 thousand, primarily due to impairment losses on receivables Other Gains and Losses Breakdown (RMB in thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net foreign exchange gains/(losses) | 55 | (454) | | Fair value gains on financial assets at FVTPL | 7 | 115 | | Impairment losses on prepayments and other receivables | (613) | (58) | | Others | – | (125) | | **Total** | **(551)** | **(522)** | [Finance Costs Analysis](index=39&type=section&id=Finance%20Costs%20Analysis) Finance costs totaled RMB 5,425 thousand, mainly consisting of interest on bank borrowings and lease liabilities Finance Costs Breakdown (RMB in thousands) | Cost Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on loans from a related party | 205 | 421 | | Interest on bank and other borrowings | 4,082 | 3,651 | | Interest on lease liabilities | 1,138 | 1,346 | | **Total** | **5,425** | **5,418** | [Profit/Loss Before Tax](index=40&type=section&id=Profit/Loss%20Before%20Tax) The company achieved a profit before tax of RMB 2,898 thousand, a significant turnaround from the prior year's loss - Profit before tax was **RMB 2,898 thousand**, compared to a loss of RMB 97,569 thousand in the prior period, marking a successful turnaround[86](index=86&type=chunk) - Key adjustments include depreciation of property, plant and equipment of RMB 27,276 thousand, employee costs of RMB 34,368 thousand, and share-based payment expenses of RMB 7,031 thousand[105](index=105&type=chunk) [Income Tax](index=40&type=section&id=Income%20Tax) The company is exempt from income tax in the Cayman Islands, and no provision for income tax was made for its subsidiaries - The Company is incorporated in the Cayman Islands and is exempted from income tax[106](index=106&type=chunk) - No provision for income tax has been made as subsidiaries in Hong Kong and China had no assessable profits[106](index=106&type=chunk) [Dividends and Earnings/Loss Per Share](index=41&type=section&id=Dividends%20and%20Earnings/Loss%20Per%20Share) No interim dividend was declared, and basic and diluted earnings per share were both RMB 0.00, improving from a loss per share - No dividend was paid or proposed for ordinary shareholders of the Company for the six months ended June 30, 2025[107](index=107&type=chunk) Earnings/Loss Per Share (RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 0.00 | (0.02) | | Diluted earnings/(loss) per share | 0.00 | (0.02) | - The weighted average number of ordinary shares for calculating basic and diluted earnings/loss per share was 4,124,080 thousand shares[110](index=110&type=chunk) [Property, Plant and Equipment](index=41&type=section&id=Property,%20Plant%20and%20Equipment) The Group acquired assets at a cost of RMB 8,145 thousand, primarily related to construction in progress - During the six months ended June 30, 2025, the Group acquired assets at a cost of RMB 8,145 thousand[111](index=111&type=chunk) - The asset acquisitions mainly comprised construction in progress of RMB 8,040 thousand[111](index=111&type=chunk) [Other Non-current Assets](index=41&type=section&id=Other%20Non-current%20Assets) Other non-current assets totaled RMB 3,384 thousand, mainly prepayments for the new production facility in Taizhou High-tech Zone Other Non-current Assets Breakdown (RMB in thousands) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Prepayments for acquisition of property, plant and equipment | 3,293 | 2,407 | | Deposits | 91 | 447 | | **Total** | **3,384** | **2,854** | - Prepayments for the acquisition of property, plant and equipment are mainly related to the construction of the new production facility in Taizhou High-tech Zone[112](index=112&type=chunk) [Trade Receivables](index=42&type=section&id=Trade%20Receivables) Trade receivables totaled RMB 145,335 thousand, with the increase reflecting a significant growth in pharmaceutical sales volume Ageing Analysis of Trade Receivables (RMB in thousands) | Ageing | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 123,802 | 75,807 | | 4 to 6 months | 15,572 | 11,482 | | 7 to 9 months | 5,820 | 6,283 | | 10 to 12 months | 141 | 954 | | **Total** | **145,335** | **94,526** | - Trade receivables increased by 53.8% to RMB 145,335 thousand, primarily due to a substantial increase in drug sales volume[73](index=73&type=chunk) [Prepayments and Other Receivables](index=42&type=section&id=Prepayments%20and%20Other%20Receivables) Prepayments and other receivables amounted to RMB 24,681 thousand, with prepayments for R&D services being the largest component Prepayments and Other Receivables Breakdown (RMB in thousands) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Other receivables | 3,139 | 1,560 | | Prepayments for R&D services | 18,476 | 18,628 | | Other deposits and prepayments | 3,061 | 3,722 | | VAT recoverable | 5 | 7,644 | | **Total** | **24,681** | **31,554** | [Trade and Other Payables](index=43&type=section&id=Trade%20and%20Other%20Payables) Trade and other payables totaled RMB 216,751 thousand, with accrued marketing service fees being the largest component Trade and Other Payables Breakdown (RMB in thousands) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Trade payables | 29,235 | 11,709 | | Accrued R&D service expenses | 24,132 | 22,807 | | Other payables for purchase of property, plant and equipment | 6,695 | 33,671 | | Payroll and bonus payables | 10,488 | 13,289 | | Other tax payables | 8,463 | 634 | | Accrued listing expenses and issuance costs | 11,295 | 11,189 | | Accrued marketing service fees | 119,770 | 71,332 | | Other payables | 6,673 | 4,736 | | **Total** | **216,751** | **169,367** | - The credit period on trade payables is generally 60 days from the date of receipt of goods and/or services[115](index=115&type=chunk) [Interest-bearing Bank and Other Borrowings](index=44&type=section&id=Interest-bearing%20Bank%20and%20Other%20Borrowings) Total interest-bearing borrowings amounted to RMB 256,449 thousand, comprising both current and non-current loans Details of Interest-bearing Bank and Other Borrowings (RMB in thousands) | Borrowing Type | Effective Interest Rate (%) | Maturity | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Current** | | | | | | Bank loans (secured) | LPR+50 bps | 2025 | 89,987 | 80,054 | | **Non-current** | | | | | | Other loans (unsecured) | 4.0% | 2032 | 66,366 | 65,537 | | Bank loans (secured) | LPR | 2026 | 100,096 | 100,000 | | **Total** | | | **256,449** | **245,591** | - The difference between the carrying amounts and fair values of the non-current portion of interest-bearing bank and other borrowings is negligible[117](index=117&type=chunk) [Share Capital](index=45&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital was RMB 2,804 thousand - As of June 30, 2025, the company's issued and fully paid share capital was RMB 2,804 thousand[118](index=118&type=chunk) - The share capital consisted of 4,124,080,000 ordinary shares with a par value of US$0.0001 each[118](index=118&type=chunk) [Capital Commitments](index=45&type=section&id=Capital%20Commitments) The Group had capital commitments of RMB 3,715 thousand for equipment purchases and building construction Capital Commitments (RMB in thousands) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Contracted, but not provided for | 3,715 | 4,223 | - Capital commitments are mainly related to the new production facility in Taizhou High-tech Zone[119](index=119&type=chunk) [Related Party Transactions](index=46&type=section&id=Related%20Party%20Transactions) The Group conducted several transactions with its related party, Biomabs, including the repayment of loans and interest Related Party Transactions during the Period (RMB in thousands) | Transaction Type | 2025 | 2024 | | :--- | :--- | :--- | | Repayment of loans from a related party - principal | (18,500) | – | | Interest on loans from a related party | 205 | 421 | | Repayment of interest on loans from a related party | 1,801 | – | Amounts due to a Related Party (RMB in thousands) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Trade payables (Biomabs) | 47,280 | 47,280 | | Interest payables (Biomabs) | – | 1,596 | | Loans payable (Biomabs) | – | 18,500 | | **Total** | **47,280** | **67,376** | - The trade payables to Biomabs of RMB 47,280 thousand, related to the acquisition of intellectual property for CMAB807, have had their due date extended to December 31, 2027[123](index=123&type=chunk) Compensation of Key Management Personnel (RMB in thousands) | Compensation Item | 2025 | 2024 | | :--- | :--- | :--- | | Salaries and other benefits | 2,396 | 1,819 | | Pension scheme contributions | 175 | 140 | | Directors' fees | 220 | 165 | | Share-based compensation | 6,231 | 7,567 | | **Total** | **9,022** | **9,691** | [Other Corporate Information](index=49&type=section&id=Other%20Corporate%20Information) [Interim Dividend](index=49&type=section&id=Interim%20Dividend) The Board of Directors has recommended that no interim dividend be paid for the six months ended June 30, 2025 - The Board of Directors recommends that no interim dividend be paid for the six months ended June 30, 2025[126](index=126&type=chunk) [Use of Net Proceeds from Listing](index=49&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The net proceeds of approximately HK$1,144.5 million from the global offering have been fully utilized as intended - The net proceeds from the global offering of approximately **HK$1,144.5 million have been fully utilized**[127](index=127&type=chunk) - The use of net proceeds was in accordance with the intentions set out in the prospectus[127](index=127&type=chunk) [Material Investments, Acquisitions and Disposals](index=49&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals) The Group held no material investments and made no significant acquisitions or disposals during the reporting period - As of June 30, 2025, the Group did not hold any material investments[128](index=128&type=chunk) - There were no future plans for material investments or capital assets during the reporting period[128](index=128&type=chunk) - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[128](index=128&type=chunk) [Employees and Remuneration Policy](index=49&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 383 employees, with a focus on attracting and retaining high-caliber R&D talent Number of Employees by Function | Function | Number of Employees | | :--- | :--- | | Business Unit | 67 | | R&D Staff | 253 | | Administration | 20 | | Management | 43 | | **Total** | **383** | - The company is committed to attracting, recruiting, and retaining qualified employees by offering opportunities to work on cutting-edge biologics projects[130](index=130&type=chunk) - Employee remuneration includes salaries and bonuses, with contributions made to social insurance funds; a labor union has been established in Taizhou[131](index=131&type=chunk) [Corporate Governance and Securities Transactions](index=50&type=section&id=Corporate%20Governance%20and%20Securities%20Transactions) The Group is committed to high standards of corporate governance and has complied with all applicable code provisions - The Group is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code[132](index=132&type=chunk) - The Board believes the company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[132](index=132&type=chunk) - The company has adopted the Model Code for securities transactions by directors, and all directors have confirmed their compliance[133](index=133&type=chunk) [Material Litigation](index=51&type=section&id=Material%20Litigation) The company was not involved in any material litigation or arbitration during the reporting period - During the reporting period, the Company was not involved in any material litigation or arbitration[135](index=135&type=chunk) - The directors are not aware of any pending or threatened material litigation or claims against the Group[135](index=135&type=chunk) [Audit Committee and Review of Financial Report](index=51&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Report) The Audit Committee has reviewed the interim financial statements and confirmed the adequacy of the internal control system - The Audit Committee has reviewed the Group's interim consolidated financial statements for the six months ended June 30, 2025[136](index=136&type=chunk) - The Audit Committee discussed accounting principles, policies, and internal control matters with senior management and the external auditor, Ernst & Young[136](index=136&type=chunk) - The Audit Committee is satisfied that the internal control system is sufficient to identify, manage, and mitigate various operational risks[136](index=136&type=chunk) [Important Events After the Reporting Date](index=52&type=section&id=Important%20Events%20After%20the%20Reporting%20Date) There were no significant events requiring disclosure between June 30, 2025, and the date of this announcement - From June 30, 2025, up to the date of this announcement, there were no important events requiring disclosure by the Group[137](index=137&type=chunk) [Publication of Interim Report and Acknowledgement](index=52&type=section&id=Publication%20of%20Interim%20Report%20and%20Acknowledgement) The interim report will be published on the websites of the Stock Exchange and the company in due course - This announcement is published on the websites of the Stock Exchange and the Company[138](index=138&type=chunk) - The interim report for the six months ended June 30, 2025, will be published in due course[138](index=138&type=chunk) - The Board extends its sincere thanks and appreciation to all shareholders, business partners, and employees[139](index=139&type=chunk) [Definitions](index=52&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the report to ensure clear understanding - This section provides definitions for key terms and abbreviations used in the report[140](index=140&type=chunk) - Definitions include company names, core products (CMAB007, CMAB009, and CMAB008), regulatory bodies (NMPA), and financial terms (NDA, GMP)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)

[Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group achieved a net profit of HKD 220 thousand for the period, turning around from a loss in the prior year, driven by increased gross profit and significant impairment reversal Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 21,545 | 50,889 | -57.7% | | Cost of sales | (17,761) | (48,884) | -63.7% | | Gross profit | 3,784 | 2,005 | +88.7% | | Other income | 868 | 1,033 | -15.9% | | Net reversal of impairment losses | 6,528 | 160 | +3980% | | Administrative expenses | (10,551) | (10,535) | +0.15% | | Finance costs | (94) | (129) | -27.2% | | Profit (Loss) before tax | 535 | (7,466) | Turned from loss to profit | | Income tax expense (credit) | (315) | 28 | Turned from credit to expense | | Total profit (loss) for the period | 220 | (7,438) | Turned from loss to profit | | Basic earnings (loss) per share | 0.01 (HK cents) | (0.37) (HK cents) | Turned from loss to profit | [Unaudited Condensed Consolidated Statement of Financial Position](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%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) The Group maintained stable net current assets and total assets less current liabilities, with increased cash and fixed deposits, while trade receivables and payables decreased Key Data from Condensed Consolidated Statement of Financial Position | Metric | As at June 30, 2025 (HKD thousands) | As at December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 28,636 | 29,609 | -3.3% | | Current assets | 216,280 | 227,991 | -5.2% | | Trade and other receivables | 25,151 | 63,608 | -60.5% | | Contract assets | 81,386 | 92,257 | -11.8% | | Fixed deposits | 34,000 | 16,000 | +112.5% | | Cash and cash equivalents | 75,743 | 56,126 | +34.9% | | Current liabilities | 27,205 | 39,726 | -31.5% | | Trade payables | 4,715 | 6,757 | -30.2% | | Contract liabilities | 776 | 8,204 | -90.5% | | Net current assets | 189,075 | 188,265 | +0.4% | | Total assets less current liabilities | 217,711 | 217,874 | -0.1% | | Non-current liabilities | 4,547 | 4,930 | -7.8% | | Share capital | 20,000 | 20,000 | 0% | | Reserves | 193,164 | 192,944 | +0.1% | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%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 provides detailed explanations and breakdowns of the figures presented in the condensed consolidated financial statements [General Information](index=3&type=section&id=1.%20%E4%B8%80%E8%88%AC%E4%BA%8B%E9%A0%85) Aoda Holdings Limited is incorporated in the Cayman Islands, listed on the HKEX, and primarily engaged in cable trading, electrical and mechanical engineering services in Macau and Hong Kong - The Company was incorporated in the Cayman Islands on November 6, 2015, and listed on the Main Board of HKEX on February 14, 2020[4](index=4&type=chunk) - The Company and its subsidiaries are primarily engaged in cable trading, and providing electrical and mechanical engineering services in Macau and Hong Kong[4](index=4&type=chunk) [Basis of Preparation](index=3&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and Appendix D2 of the Listing Rules - The financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and Appendix D2 of the Listing Rules[5](index=5&type=chunk) [Significant Accounting Policies](index=3&type=section&id=3.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The financial statements are prepared on a historical cost basis, with the first-time application of HKFRS amendments having no significant impact on financial position or performance - The financial statements are prepared on a historical cost basis, with accounting policies consistent with the prior year, except for the first-time application of HKFRS amendments[6](index=6&type=chunk) - The application of HKAS 21 amendment "Lack of Exchangeability" had no significant impact on the financial position and performance for the current and prior periods[7](index=7&type=chunk) [Revenue and Segment Information](index=4&type=section&id=4.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Revenue is primarily derived from cable trading and E&M engineering services, recognized over time for services and at point of control transfer for goods, with cable trading contributing HKD 2,436 thousand and E&M services HKD 19,109 thousand, predominantly from hotels and casinos - Revenue is derived from cable trading and electrical and mechanical engineering services, recognized when control of goods is transferred and over time as services are rendered, respectively[8](index=8&type=chunk) Revenue by Customer Contract | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Provision of electrical and mechanical engineering services | 19,109 | 50,889 | | - Hotels and casinos | 11,674 | 5,502 | | - Residential properties | 3,532 | 2,069 | | - Commercial properties | 606 | 3,348 | | - Public properties | 2,633 | 39,903 | | - Others | 664 | 67 | | Cable trading | 2,436 | – | | **Total Revenue** | **21,545** | **50,889** | Revenue by Geographical Location | Geographical Location | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Macau | 15,822 | 7,376 | | Hong Kong | 5,723 | 43,513 | | **Total Revenue** | **21,545** | **50,889** | [Other Income](index=5&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for the period was HKD 868 thousand, primarily comprising interest income of HKD 601 thousand and government grants of HKD 227 thousand, a decrease from HKD 1,033 thousand in the prior year Other Income Details | Income Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 601 | 624 | | Government grants | 227 | – | | Others | 40 | 409 | | **Total** | **868** | **1,033** | [Profit (Loss) Before Tax](index=6&type=section&id=6.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Profit before tax for the period was HKD 535 thousand, turning from a loss of HKD 7,466 thousand in the prior year, primarily due to a significant increase in net reversal of impairment losses Components of Profit (Loss) Before Tax | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,249 | 1,339 | | Net reversal of impairment losses under expected credit loss model | (6,528) | (160) | [Income Tax Expense (Credit)](index=6&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89) Income tax expense for the period was HKD 315 thousand, compared to a HKD 28 thousand credit in the prior year, primarily due to taxable profits generated by Macau subsidiaries Income Tax Expense (Credit) Details | Tax Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Macau Complementary Tax - Current tax | 316 | – | | Macau Complementary Tax - Deferred tax | (2) | (1) | | Hong Kong Profits Tax - Current tax | – | – | | Hong Kong Profits Tax - Deferred tax | 1 | (27) | | **Total** | **315** | **(28)** | - Macau Complementary Tax is calculated at **12%** on estimated assessable profits exceeding MOP 600,000[14](index=14&type=chunk) - Hong Kong Profits Tax adopts a two-tiered tax rate system, with the first **HKD 2 million** taxed at **8.25%** and the remainder at **16.5%**[15](index=15&type=chunk) [Dividends](index=7&type=section&id=8.%20%E8%82%A1%E6%81%AF) No dividends were paid or proposed by the Company for the six-month period ended June 30, 2025 - No dividends were paid or proposed to ordinary shareholders for the current and prior periods[17](index=17&type=chunk) [Earnings (Loss) Per Share](index=7&type=section&id=9.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Basic earnings per share for the period was HKD 0.01 cents, turning from a basic loss per share of HKD 0.37 cents in the prior year, primarily due to increased profit for the period Earnings (Loss) Per Share Data | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit (Loss) for the period | 220 | (7,438) | | Basic earnings (loss) per share | 0.01 (HK cents) | (0.37) (HK cents) | - No diluted earnings (loss) per share is presented as there were no potential ordinary shares outstanding for both periods[19](index=19&type=chunk) [Property, Plant and Equipment](index=7&type=section&id=10.%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) Acquisitions of property, plant and equipment amounted to HKD 286 thousand for the period, and as of June 30, 2025, self-owned property with a carrying amount of HKD 14,908 thousand was pledged for bank borrowings - Acquisitions of property, plant and equipment amounted to **HKD 286 thousand**, a decrease from HKD 809 thousand in the prior year[20](index=20&type=chunk) - As at June 30, 2025, self-owned property with a carrying amount of **HKD 14,908 thousand** was pledged to secure bank borrowings[20](index=20&type=chunk) [Trade and Other Receivables](index=8&type=section&id=11.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade receivables (net of credit loss allowance) significantly decreased to HKD 22,318 thousand, primarily due to a HKD 5,697 thousand reversal of expected credit losses for trade receivables and contract assets related to suspended construction projects Trade and Other Receivables Details | Item | As at June 30, 2025 (HKD thousands) | As at December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables | 26,570 | 71,224 | | Less: Allowance for credit losses | (4,252) | (8,824) | | **Net trade receivables** | **22,318** | **62,400** | | Deposits, prepayments and other receivables | 2,833 | 1,219 | | **Total** | **25,151** | **63,619** | - A **HKD 5,697 thousand** reversal of expected credit losses was recognized for the period, primarily related to trade receivables and contract assets for suspended construction projects in Macau[21](index=21&type=chunk) [Contract Assets and Contract Liabilities](index=9&type=section&id=12.%20%E5%90%88%E7%B4%84%E8%B3%87%E7%94%A2%E5%8F%8A%E5%90%88%E7%B4%84%E8%B2%A0%E5%82%B5) As of June 30, 2025, net contract assets decreased to HKD 81,386 thousand from December 31, 2024, while contract liabilities significantly reduced to HKD 776 thousand Contract Assets and Contract Liabilities Details | Item | As at June 30, 2025 (HKD thousands) | As at December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Contract assets from provision of E&M engineering services | | | | - Unbilled revenue | 77,435 | 73,576 | | - Retention money | 19,729 | 36,414 | | **Subtotal** | **97,164** | **109,990** | | Less: Allowance for credit losses | (15,778) | (17,733) | | **Net contract assets** | **81,386** | **92,257** | | Contract liabilities | 776 | 8,204 | [Trade Payables](index=9&type=section&id=13.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) As of June 30, 2025, total trade payables decreased to HKD 4,715 thousand from HKD 6,757 thousand on December 31, 2024, with the largest portion being overdue by more than 90 days Ageing Analysis of Trade Payables | Ageing | As at June 30, 2025 (HKD thousands) | As at December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 30 days | 553 | 267 | | 31 to 60 days | – | 247 | | 61 to 90 days | – | 179 | | Over 90 days | 4,162 | 6,064 | | **Total** | **4,715** | **6,757** | [Bank Borrowings](index=10&type=section&id=14.%20%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) Bank borrowings are interest-bearing at a variable market rate of prime rate minus 2.55% per annum, used for the acquisition of pledged self-owned property, and repayable in installments over 10 years - Bank borrowings are interest-bearing at a variable market rate of prime rate minus **2.55%** per annum, and repayable in installments over **10 years**[24](index=24&type=chunk) - The borrowings were used for the acquisition of self-owned property with a carrying amount of **HKD 14,908 thousand**, which is pledged to the bank[24](index=24&type=chunk) [Share Capital](index=10&type=section&id=15.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's authorized share capital was HKD 50,000 thousand (5,000,000,000 shares), and issued and fully paid share capital was HKD 20,000 thousand (2,000,000,000 shares) with a par value of HKD 0.01 per share, remaining unchanged from the prior year Share Capital Structure | Category | Number of Shares | Share Capital (HKD thousands) | | :--- | :--- | :--- | | Authorized share capital (par value HKD 0.01 per share) | 5,000,000,000 | 50,000 | | Issued and fully paid share capital (par value HKD 0.01 per share) | 2,000,000,000 | 20,000 | [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the Group's operational performance, financial position, and strategic outlook for the period [Business Review and Market Outlook](index=11&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B8%82%E5%A0%B4%E5%89%8D%E6%99%AF) The Group operates in E&M engineering and cable trading in Macau and Hong Kong, with total revenue significantly decreasing by 57.7% to HKD 21.5 million due to a sluggish construction market, mitigated by expanding cable trading and focusing on EV charging E&M projects - The Group is primarily engaged in electrical and mechanical engineering and cable trading in Macau and Hong Kong[27](index=27&type=chunk) - Total revenue for the 2025 period was approximately **HKD 21.5 million**, a **57.7% year-on-year decrease**, primarily due to the sluggish construction market in Hong Kong and Macau[27](index=27&type=chunk) - The Company is diversifying market risks and expanding revenue streams by developing new cable trading business, which contributed **HKD 2.4 million** in revenue this period, and focusing on E&M engineering services for electric vehicle charging facilities[27](index=27&type=chunk)[28](index=28&type=chunk) [Financial Review](index=12&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the Group's financial performance for the six months ended June 30, 2025, highlighting significant revenue decline, reduced cost of sales, improved gross margin, slight decrease in other income, substantial increase in net reversal of expected credit losses, stable administrative expenses, a shift to income tax expense, and ultimately a net profit [Revenue](index=12&type=section&id=%E6%94%B6%E7%9B%8A) Revenue decreased significantly due to a sluggish construction market, but the new cable trading business contributed to diversification - Revenue decreased by **57.7% year-on-year** to **HKD 21.5 million**, primarily impacted by the continued sluggish construction market in Hong Kong[29](index=29&type=chunk) Revenue Composition (by Service Type) | Service Type | 2025 (HKD millions) | % of Total | 2024 (HKD millions) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Provision of E&M engineering services | 19.1 | 88.8 | 50.9 | 100 | | - Hotels and casinos | 11.7 | 54.4 | 5.5 | 10.8 | | - Residential properties | 3.5 | 16.3 | 2.1 | 4.1 | | - Commercial properties | 0.6 | 2.8 | 3.3 | 6.6 | | - Public properties | 2.6 | 12.1 | 39.9 | 78.4 | | - Others | 0.7 | 3.2 | 0.1 | 0.1 | | Cable trading | 2.4 | 11.2 | – | – | | **Total** | **21.5** | **100** | **50.9** | **100** | [Cost of Sales](index=12&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased in line with revenue, with material and staff costs being the primary components - Cost of sales decreased by **63.7% year-on-year** to **HKD 17.8 million**[31](index=31&type=chunk) - Material costs and staff costs accounted for **51.5%** and **39.5%** of total cost of sales, respectively[31](index=31&type=chunk) [Gross Profit/Gross Margin](index=13&type=section&id=%E6%AF%9B%E5%88%A9%E2%88%95%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased, and gross margin significantly improved due to cable trading contributions and effective cost control - Gross profit increased to **HKD 3.8 million**, with gross margin rising from **3.9% to 17.6%**[32](index=32&type=chunk) - The increase in gross margin is primarily attributable to the contribution from the cable trading segment and cost control measures[32](index=32&type=chunk) [Other Income](index=13&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for the period primarily consisted of interest income and government grants - Other income amounted to **HKD 0.9 million**, mainly comprising bank interest income and sundry income[33](index=33&type=chunk) [Net Reversal of Impairment Losses Under Expected Credit Loss Model](index=13&type=section&id=%E9%A0%90%E6%9C%9F%E4%BF%A1%E8%B2%B8%E虧%E6%90%8D%E6%A8%A1%E5%BC%8F%E9%A0%85%E4%B8%8B%E4%B9%8B%E6%B8%9B%E5%80%BC%E虧%E6%90%8D%E6%92%A5%E5%9B%9E%E6%B7%A8%E9%A1%8D) A substantial net reversal of impairment losses was recognized, mainly from the recovery of receivables related to a suspended project - Net reversal of impairment losses was approximately **HKD 6.5 million**, a significant increase from HKD 160,000 in the prior year[35](index=35&type=chunk) - The reversal was primarily due to the recovery of most contract assets and trade receivables from a suspended hotel development project, and an improvement in the ageing profile of trade receivables[34](index=34&type=chunk)[35](index=35&type=chunk) [Administrative Expenses](index=14&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses remained stable despite the overall decrease in revenue - Administrative expenses remained stable at approximately **HKD 10.6 million**[36](index=36&type=chunk) [Income Tax Expense (Credit)](index=14&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89) The Group recorded an income tax expense for the period, shifting from a credit in the prior year due to taxable profits - Income tax expense was approximately **HKD 0.3 million**, compared to a credit of HKD 28,000 in the prior year, mainly due to profits generated from subsidiary operations[37](index=37&type=chunk) [Net Profit](index=14&type=section&id=%E6%BA%A2%E5%88%A9%E6%B7%A8%E9%A1%8D) The Group achieved a net profit for the period, a significant improvement from the net loss in the prior year - A net profit of approximately **HKD 0.2 million** was recorded for the period, compared to a net loss of approximately HKD 7.4 million in the prior year[38](index=38&type=chunk) - Basic earnings per share was **HKD 0.01 cents**, compared to a basic loss per share of HKD 0.37 cents in the prior year[38](index=38&type=chunk) [Interim Dividend](index=14&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board did not recommend the payment of an interim dividend for the current period - The Board does not recommend the payment of an interim dividend for the 2025 period[39](index=39&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=14&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Group funds operations through cash inflows from operating activities, with cash and cash equivalents increasing to HKD 75.7 million and fixed deposits to HKD 34 million as of June 30, 2025, maintaining stable working capital and net assets, and a healthy gearing ratio of 14.9% - As at June 30, 2025, cash and cash equivalents were approximately **HKD 75.7 million**, and fixed deposits were approximately **HKD 34 million**[40](index=40&type=chunk) Key Liquidity and Capital Structure Indicators | Metric | As at June 30, 2025 (HKD millions) | As at December 31, 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | Working capital | 189.1 | 188.3 | +0.4% | | Net assets | 213.2 | 212.9 | +0.1% | | Gearing ratio | 14.9% | 21.0% | -6.1 percentage points | [Treasury Policy](index=15&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a prudent financial management approach, with the Board closely monitoring liquidity to ensure the capital structure of assets, liabilities, and other commitments can meet funding requirements - The Group adopts a prudent financial management approach, with the Board closely monitoring its liquidity position[42](index=42&type=chunk) [Currency Risk](index=15&type=section&id=%E8%B2%A8%E5%B9%A3%E9%A2%A8%E9%9A%AA) The Group faces minimal foreign currency risk as most transactions and balances are denominated in MOP or HKD, and the functional currency's exchange rate to HKD is stable, with no foreign currency hedging policy currently in place - The Group faces minimal foreign currency risk and has not established a foreign currency hedging policy[43](index=43&type=chunk) [Interest Rate Risk](index=15&type=section&id=%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA) The Group is exposed to interest rate risk on interest-bearing financial assets and liabilities, such as bank balances and borrowings, with no current hedging policy, though management will consider hedging significant interest rate exposures when necessary - The Group is exposed to interest rate risk on interest-bearing financial assets and liabilities, and currently has no interest rate hedging policy[44](index=44&type=chunk) [Key Risks and Uncertainties](index=16&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E7%A2%BA%E5%AE%9A%E5%9B%A0%E7%B4%A0) Key risks include project non-recurrence, revenue reduction from failure to secure new clients or projects, liquidity impact from delayed progress payments or retention money, project cost fluctuations, and uncertainties in cable and key material prices and supply; the Group has implemented a risk management system to mitigate daily operational risks - Key risks include the non-recurring nature of projects and the inability to attract new customers or secure new projects, leading to significant revenue reduction[45](index=45&type=chunk) - Failure to receive progress payments, trade receivables, or retention money on time or in full could adversely affect liquidity[45](index=45&type=chunk) - Other risks include fluctuations in project costs, and uncertainties in the prices and supply of cables and key materials[45](index=45&type=chunk)[46](index=46&type=chunk) - The Group has implemented a risk management system, led by senior directors, to mitigate daily operational risks[46](index=46&type=chunk) [Material Investments, Material Acquisitions or Disposals](index=16&type=section&id=%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%E6%88%96%E5%87%BA%E5%94%AE) As of the 2025 period, the Group held no material investments and undertook no material acquisitions or disposals - No material investments, acquisitions, or disposals were made during the period[47](index=47&type=chunk) [Pledge of Assets](index=17&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, a property in Macau with a carrying amount of approximately HKD 14.9 million was pledged to a local bank for a mortgage loan - A property in Macau with a carrying amount of approximately **HKD 14.9 million** was pledged to a local bank to secure a mortgage loan[48](index=48&type=chunk) [Future Plans for Material Investments and Capital Assets](index=17&type=section&id=%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of the announcement date, the Group has no other future plans regarding material investments and capital assets - The Group currently has no other future plans for material investments and capital assets[49](index=49&type=chunk) [Capital Commitments](index=17&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no material capital commitments - No material capital commitments were outstanding during the period[50](index=50&type=chunk) [Contingent Liabilities](index=17&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - No material contingent liabilities were outstanding during the period[51](index=51&type=chunk) [Prospects and Strategies](index=17&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E7%AD%96%E7%95%A5) The Group aims to consolidate its position as an integrated building contractor by actively pursuing additional E&M engineering projects in Macau and Hong Kong, implementing diversification strategies, particularly expanding cable trading, prudently assessing the market, and focusing on EV charging facilities, with management cautiously optimistic about the second half's financial performance - The goal is to consolidate its position as an integrated building contractor and explore market opportunities by seeking additional E&M engineering projects[52](index=52&type=chunk) - Actively pursuing diversification strategies to expand the cable trading market business[52](index=52&type=chunk) - Management is cautiously optimistic about the financial performance in the second half of 2025 and believes the Group will improve its financial results for the current year[52](index=52&type=chunk) [Events After Reporting Period](index=17&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No other material events occurred after the reporting period and up to the date of this announcement, except as disclosed elsewhere herein - No other material events occurred after the reporting period and up to the date of this announcement[53](index=53&type=chunk) [Compliance with Relevant Laws and Regulations](index=18&type=section&id=%E9%81%B5%E5%AE%88%E7%9B%B8%E9%97%9C%E6%B3%95%E5%BE%8B%E5%8F%8A%E6%B3%95%E8%A6%8F) For the 2025 period, the Group had no material breaches or non-compliance with applicable laws and regulations significantly affecting its business and operations - No material breaches or non-compliance with applicable laws and regulations occurred during the period[54](index=54&type=chunk) [Employees and Remuneration Policy](index=18&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 48 full-time employees, a slight decrease from year-end, with remuneration policies regularly reviewed and adjusted based on individual performance and company results, including salary increments and discretionary bonuses - As at June 30, 2025, the Group had **48 full-time employees**, a slight decrease from 50 as at December 31, 2024[55](index=55&type=chunk) - Remuneration policies comply with relevant laws, market conditions, and employee performance, offering salary increments and discretionary bonuses[55](index=55&type=chunk) [Other Information](index=18&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers corporate governance, directors' securities transactions, public float, audit committee review, and publication details [Corporate Governance](index=18&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company has adopted and largely complied with the HKEX Corporate Governance Code for the 2025 period, with the temporary deviation of the Chairman also acting as Chief Executive Officer, which the Board considers a temporary measure - The Company has adopted and largely complied with the HKEX Corporate Governance Code for the 2025 period[56](index=56&type=chunk) - Mr. Wan Man Keung, the Chairman, temporarily performs the Chief Executive Officer's functions, constituting a deviation from Code Provision C.2.1, which the Board considers temporary[56](index=56&type=chunk)[57](index=57&type=chunk) [Standard Code for Securities Transactions by Directors](index=19&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, with all directors confirming compliance for the 2025 period and up to the announcement date - The Company has adopted the Standard Code for Securities Transactions by Directors, and all directors confirmed compliance[58](index=58&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=19&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E8%B6%91%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the 2025 period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period[59](index=59&type=chunk) [Sufficiency of Public Float](index=19&type=section&id=%E8%B6%B3%E5%A4%A0%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) The Directors confirm that the Company has met the public float requirements under the Listing Rules for the 2025 period and up to the announcement date - The Directors confirm that the Company has met the public float requirements under the Listing Rules[60](index=60&type=chunk) [Audit Committee](index=19&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee met on August 28, 2025, to review and approve the Group's unaudited condensed consolidated financial statements for the 2025 period, confirming compliance with applicable accounting standards and disclosure requirements - The Audit Committee has reviewed and approved the unaudited condensed consolidated financial statements for the current period[61](index=61&type=chunk) [Publication of Results Announcement and Despatch of Interim Report](index=20&type=section&id=%E5%88%8A%E7%99%BC%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E5%AF%84%E7%99%BC%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement has been published on the HKEX and Company websites, and the interim report will also be available on these websites and despatched to shareholders - The results announcement has been published on the HKEX and Company websites, and the interim report will be despatched to shareholders[62](index=62&type=chunk) [Board Composition](index=20&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E7%B5%84%E6%88%90) The Board of Directors comprises three executive directors, one non-executive director, and three independent non-executive directors - The Board comprises three executive directors, one non-executive director, and three independent non-executive directors[63](index=63&type=chunk) - The executive directors are Mr. Wan Man Keung (Chairman and Chief Executive Officer), Mr. Wan Chi Wai, and Mr. Yu Chi Chun[63](index=63&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 （於中華人民共和國註冊成立的股份有限公司） （股份代號：03369） 2025年中期業績公告 財務摘要 董事會宣佈，本公司按照《上市規則》中相關規定而編製報告期內未經審核的合併業績連同2024年同 期之相關比較數字。 * 僅供識別 1 － 本公司本期營業收入為345,113.92萬元，同比下降0.30%。 － 本公司本期毛利為143,927.16萬元，同比增長3.37%；本公司本期毛利率為41.70%，同比增長 1.48個百分點。 － 本公司本期淨利潤為104,931.42萬元，同比增長1.71%。其中，歸屬於母公司所有者的淨利潤 為98,782.82萬元，同比下降2.22%。 － 本公司於報告期內的每股收益為0.18元，同比持平。 合併資產負債表 2025年6月30日 人民幣元 | | 2025年6月30日 | | | | --- | --- | --- | --- | | | 附註四 | （未經審計 ...

[Company Announcement and Board Information](index=1&type=section&id=Company%20Announcement%20%26%20Board%20Information) [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) China e-Wallet Payment Group Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, in compliance with Stock Exchange Listing Rules - Company Name: **China e-Wallet Payment Group Limited**[2](index=2&type=chunk) - Reporting Period: Six months ended **June 30, 2025**[2](index=2&type=chunk) - Status: Unaudited condensed consolidated interim results[2](index=2&type=chunk) - Publication Date: **August 28, 2025**[3](index=3&type=chunk) [Board of Directors](index=1&type=section&id=Board%20of%20Directors) The Board of Directors comprises one Executive Director and three Independent Non-executive Directors - Executive Director: **Mr. Lam Chi Ka**[3](index=3&type=chunk) - Independent Non-executive Directors: **Ms. Pang Ching Yee**, **Mr. Tse Tung Leung**, **Mr. Wong Sze Lok**[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Company achieved a profit of HKD 3.01 million, a significant improvement from a loss of HKD 23.93 million in the prior year, driven by substantial revenue growth and a fair value gain on financial assets Condensed Consolidated Statement of Profit or Loss Key Data (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 23,246 | 12,180 | 11,066 | 90.85% | | Gross Profit | 3,621 | 726 | 2,895 | 398.76% | | Net Realized and Unrealized Fair Value Gains/(Losses) on Financial Assets at FVTPL | 2,572 | (21,496) | 24,068 | N/A | | Operating Profit/(Loss) | 3,879 | (23,060) | 26,939 | N/A | | Profit/(Loss) for the Period | 3,009 | (23,930) | 26,939 | N/A | | Profit/(Loss) Attributable to Owners of the Company | 2,916 | (23,958) | 26,874 | N/A | | Basic and Diluted Earnings/(Loss) Per Share | 0.48 HK cents | (3.97) HK cents | 4.45 HK cents | N/A | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Company recorded total comprehensive income of HKD 3.01 million, compared to a total comprehensive loss of HKD 23.94 million in the prior year, primarily due to the profit for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period | 3,009 | (23,930) | 26,939 | | Exchange Differences on Translation of Foreign Operations | – | (9) | 9 | | Total Comprehensive Income/(Loss) for the Period | 3,009 | (23,939) | 26,948 | | Total Comprehensive Income/(Loss) for the Period Attributable to Owners of the Company | 2,916 | (23,967) | 26,883 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to HKD 65.94 million and total equity to HKD 30.12 million, reflecting an improved gearing ratio Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 65,942 | 61,132 | 4,810 | 7.87% | | Equity Attributable to Owners of the Company | 30,573 | 27,657 | 2,916 | 10.54% | | Total Equity | 30,116 | 27,107 | 3,009 | 11.09% | | Total Liabilities | 35,826 | 34,025 | 1,801 | 5.29% | | Net Current Assets | 29,646 | 41,621 | (11,975) | -28.77% | [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 increased from HKD 27.66 million as of January 1, 2025, to HKD 30.57 million, primarily due to profit for the period Condensed Consolidated Statement of Changes in Equity Key Data (Six Months Ended June 30) | Metric | June 30, 2025 (thousand HKD) | January 1, 2025 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 30,573 | 27,657 | 2,916 | | Non-controlling Interests | (457) | (550) | 93 | | Total | 30,116 | 27,107 | 3,009 | [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, net cash used in operating activities decreased, net cash from investing activities increased, and cash and cash equivalents at period-end amounted to HKD 5.25 million Condensed Consolidated Statement of Cash Flows Key Data (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (2,133) | (4,353) | 2,220 | | Net Cash from Investing Activities | 1,448 | 1 | 1,447 | | Net Cash Used in Financing Activities | (240) | (1,217) | 977 | | Net Decrease in Cash and Cash Equivalents | (925) | (5,569) | 4,644 | | Cash and Cash Equivalents as of June 30 | 5,251 | 7,286 | (2,035) | [Notes to the Condensed Consolidated Interim Financial Information](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [General Information and Basis of Preparation](index=8&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Company is a Bermuda-registered investment holding company, primarily engaged in mobile application development and settlement services, and trading of beauty, computer, and mobile-related electronic products; interim financial information is presented in HKD and prepared in accordance with IAS 34 and Stock Exchange Listing Rules - Company registration: **Bermuda**[17](index=17&type=chunk) - Principal activities: Mobile application development and settlement application services, and trading of beauty, computer, and mobile-related electronic products and services[17](index=17&type=chunk) - Functional currency: **HKD**[17](index=17&type=chunk) - Basis of preparation: **IAS 34** and **Appendix D2 of the Listing Rules**[18](index=18&type=chunk) [Application of Revised IFRSs](index=9&type=section&id=Application%20of%20Revised%20IFRSs) The Group adopted revised IFRSs effective January 1, 2025, which did not result in significant changes to accounting policies or financial statement presentation - Adopted revised IFRSs effective **January 1, 2025**[20](index=20&type=chunk) - Adoption did not result in significant changes to accounting policies, financial information presentation, or reported amounts[20](index=20&type=chunk) [Revenue and Segment Information](index=9&type=section&id=Revenue%20and%20Segment%20Information) The Group's single operating segment is mobile applications and related accessories, with revenue primarily from beauty, computer, and mobile-related electronic products and services, and mobile application development and settlement application services, all generated in Hong Kong - Single operating segment: Mobile applications and related accessories[21](index=21&type=chunk) Disaggregation of Revenue from Contracts with Customers (Six Months Ended June 30) | Product/Service | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Mobile Application Development and Settlement Application Services | 4,457 | 525 | 3,932 | 748.95% | | Beauty, Computer and Mobile-related Electronic Products and Services | 18,789 | 11,655 | 7,134 | 61.21% | | **Total Revenue** | **23,246** | **12,180** | **11,066** | **90.85%** | - All revenue is derived from **Hong Kong** customers[23](index=23&type=chunk) - Major customers: Customer A contributed **HKD 10,984 thousand** (2024: **HKD 7,155 thousand**), Customer B contributed **HKD 7,805 thousand** (2024: **HKD 4,500 thousand**)[25](index=25&type=chunk) [Other Income](index=11&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income primarily consisted of bond interest income, totaling HKD 372 thousand, largely consistent with the prior year Other Income (Six Months Ended June 30) | Income Source | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Bank Interest Income | – | 1 | | Bond Interest Income | 372 | 373 | | **Total** | **372** | **374** | [Finance Costs](index=11&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs totaled HKD 870 thousand, consistent with the prior year, mainly comprising interest expense on other borrowings and bonds payable Finance Costs (Six Months Ended June 30) | Cost Source | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Interest Expense on Other Borrowings | 120 | 120 | | Interest Expense on Bonds Payable | 750 | 750 | | **Total** | **870** | **870** | [Profit/(Loss) Before Tax](index=11&type=section&id=Profit%2F%28Loss%29%20Before%20Tax) Profit/(loss) before tax is stated after deducting depreciation of property, plant and equipment, which was HKD 83 thousand in H1 2025 - Depreciation of property, plant and equipment: **HKD 83 thousand** in **2025**, **HKD 97 thousand** in **2024**[28](index=28&type=chunk) [Income Tax](index=12&type=section&id=Income%20Tax) The Group made no income tax provision in Hong Kong or China, as Hong Kong had no assessable profits or sufficient tax losses to offset, and the PRC enterprise income tax rate is 25% - Hong Kong profits tax: No provision made, due to no assessable profits or sufficient tax losses carried forward to offset[29](index=29&type=chunk) - PRC enterprise income tax: Applicable tax rate **25%**[30](index=30&type=chunk) [Earnings/(Loss) Per Share](index=12&type=section&id=Earnings%2F%28Loss%29%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share was 0.48 HK cents, compared to a loss per share of 3.97 HK cents in the prior year, primarily due to the profit for the period Earnings/(Loss) Per Share (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Company | 2,916,000 HKD | (23,958,000) HKD | | Weighted Average Number of Ordinary Shares in Issue | 603,545,948 shares | 603,545,948 shares | | Basic and Diluted Earnings/(Loss) Per Share | 0.48 HK cents | (3.97) HK cents | - Basic and diluted earnings/loss per share were the same for **2025** and **2024**, as there were no potential dilutive ordinary shares or unexercised share options with a dilutive effect[33](index=33&type=chunk)[34](index=34&type=chunk) [Dividends](index=13&type=section&id=Dividends) For the six months ended June 30, 2025, the Company paid or proposed no dividends - No dividends paid or proposed during or after the reporting period[35](index=35&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=13&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial assets at fair value through profit or loss primarily comprised Hong Kong listed equity securities, totaling HKD 45.02 million, slightly higher than at the end of 2024 Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Asset Type | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Hong Kong Listed Equity Securities | 45,019 | 44,833 | 186 | - Financial assets held for trading are stated at fair value, determined by quoted bid prices on the Stock Exchange[36](index=36&type=chunk) [Trade Receivables](index=13&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables amounted to HKD 12.45 million, a significant increase from HKD 6.17 million at the end of 2024, with the aging structure showing more receivables concentrated in the 31-180 day range Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | 0 to 30 days | 7,563 | 6,360 | | 31 to 60 days | 2,155 | – | | 61 to 90 days | 2,250 | – | | 91 to 180 days | 425 | – | | Over 180 days | 251 | – | | **Total (Net of Allowance)** | **12,454** | **6,170** | - Trade receivables generally have a credit period of **30 to 180 days**[37](index=37&type=chunk) [Share Capital](index=14&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 200,000,000 thousand shares, and issued and fully paid share capital was 603,546 thousand shares with a par value of HKD 0.01 per share, totaling HKD 6,035 thousand, consistent with the end of 2024 Share Capital Structure (As of June 30) | Metric | Number of Shares (thousand shares) | Amount (thousand HKD) | | :--- | :--- | :--- | | Authorized Share Capital (par value HKD 0.01 per share) | 200,000,000 | 2,000,000 | | Issued and Fully Paid Share Capital (par value HKD 0.01 per share) | 603,546 | 6,035 | [Trade Payables](index=14&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables amounted to HKD 12.26 million, an increase from HKD 10.58 million at the end of 2024, with a significant increase in payables over 90 days old Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | 0 to 30 days | 1,700 | 10,424 | | 31 to 60 days | 1,100 | – | | 61 to 90 days | 1,030 | – | | Over 90 days | 8,426 | 160 | | **Total** | **12,256** | **10,584** | - Trade payables generally have a credit period of **0 to 60 days**[39](index=39&type=chunk) [Financial Instruments](index=15&type=section&id=Financial%20Instruments) Directors believe the carrying amounts of financial assets and liabilities measured at amortized cost approximate their fair values; financial instruments measured at fair value are primarily Hong Kong listed equity securities, classified as fair value hierarchy Level 1, and valued using quoted bid prices in active markets - Carrying amounts of financial assets and liabilities measured at amortized cost approximate their fair values[40](index=40&type=chunk) - Financial instruments measured at fair value are primarily Hong Kong listed equity securities, classified as fair value hierarchy **Level 1**[42](index=42&type=chunk) - Fair value is determined by quoted bid prices in active markets[43](index=43&type=chunk) - No transfers between Level 1, 2, and 3 occurred during the reporting period[42](index=42&type=chunk) [Related Party Transactions](index=15&type=section&id=Related%20Party%20Transactions) Key management personnel compensation, including directors' remuneration, increased to HKD 120 thousand in H1 2025, up from HKD 46 thousand in the prior year Key Management Personnel Compensation (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Short-term Benefits | 120 | 46 | 74 | [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) [Operating Environment](index=16&type=section&id=Operating%20Environment) The Company faces challenges from technological innovation, changing consumer preferences, and trade flows, but through extensive technological deployment and core business adjustments, it can rapidly respond to market changes and continuously improve products and business operations - Operating environment is challenging, facing competition from technological innovation, changes in consumer preferences, and trade flows[45](index=45&type=chunk) - The Company has adjusted and continues to improve its core businesses and delivery, with innovation in products and business operations as its foundation[45](index=45&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) The Group primarily engages in internet and mobile applications, interactive virtual reality technology development, design and distribution of computer/mobile/beauty-related electronic products, and system solution services - Principal activities: Providing internet and mobile applications, developing interactive virtual reality technology, design and distribution of computer-related, mobile-related, and beauty-related electronic products and accessories, and providing project-based system solution services[46](index=46&type=chunk) Revenue by Business Segment (Six Months Ended June 30) | Business Segment | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Mobile Application Development and Settlement Application Services | 4,457 | 525 | 3,932 | 748.95% | | Beauty, Computer and Mobile-related Electronic Products and Services | 18,789 | 11,655 | 7,134 | 61.21% | | **Total** | **23,246** | **12,180** | **11,066** | **90.85%** | [Mobile Application Development and Settlement Application Services](index=16&type=section&id=Mobile%20Application%20Development%20and%20Settlement%20Application%20Services) Following changes in directors in Q1 2024, the Group terminated loss-making settlement application services and focused on software and application development and consulting services, which generated HKD 4.46 million in revenue in H1 2025, leveraging rich industry experience and a strong customer base - Terminated loss-making settlement application services, focused on software and application development and consulting services[48](index=48&type=chunk) - Revenue from this service approximately **HKD 4.46 million** in H1 **2025**[48](index=48&type=chunk) - Management team has over **20 years** of experience in IT software and application development[48](index=48&type=chunk) - Hosted Hong Kong's first anime-themed interactive exhibition in **2019**, renowned for designing and installing high-quality interactive projection mapping systems[48](index=48&type=chunk) [Beauty, Computer and Mobile-related Electronic Products and Services](index=17&type=section&id=Beauty%2C%20Computer%20and%20Mobile-related%20Electronic%20Products%20and%20Services) The Group has been engaged in electronic product design and distribution since 2011, with revenue from this business approximately HKD 18.79 million in H1 2025, of which approximately 58.5% was supplied to a leading medical aesthetics service provider in Hong Kong, and will continue to focus on beauty-related electronic products - Engaged in electronic product design and distribution since **2011**[50](index=50&type=chunk) - Revenue from this business approximately **HKD 18.79 million** in H1 **2025**[50](index=50&type=chunk) - Approximately **58.5%** of electronic products supplied to a leading medical aesthetics service provider in **Hong Kong**[50](index=50&type=chunk) - Will continue to focus on the design and distribution of beauty-related electronic products in **2025**[50](index=50&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) In H1 2025, the Group's financial performance significantly improved, with total revenue growth of 90.9%, a substantial increase in gross profit, and a turn from loss to profit for the period, primarily driven by business revenue growth and fair value gains on financial assets [Revenue](index=17&type=section&id=Revenue_FinancialReview) For the six months ended June 30, 2025, total revenue was approximately HKD 23.25 million, a 90.9% year-over-year increase, primarily driven by increased revenue from beauty, computer, and mobile-related electronic products and services - Total revenue approximately **HKD 23.25 million**, a **90.9% year-over-year increase**[52](index=52&type=chunk) - Revenue increase primarily due to increased revenue from beauty, computer, and mobile-related electronic products and services[52](index=52&type=chunk) [Gross Profit](index=17&type=section&id=Gross%20Profit) Gross profit for H1 2025 was HKD 3.62 million, a significant increase from HKD 0.73 million in the prior year, consistent with the revenue growth trend - Gross profit **HKD 3.62 million**, significantly increased from **HKD 0.73 million** in the prior year[53](index=53&type=chunk) [Selling and Administrative Expenses](index=17&type=section&id=Selling%20and%20Administrative%20Expenses) Selling and administrative expenses slightly increased to HKD 2.69 million, but their proportion of revenue decreased from 21.9% to 11.6%, indicating improved operational efficiency - Selling and administrative expenses increased to approximately **HKD 2.69 million**[54](index=54&type=chunk) - Proportion of revenue decreased from **21.9%** in **2024** to **11.6%** in **2025**[54](index=54&type=chunk) [Profit/(Loss) for the Period](index=17&type=section&id=Profit%2F%28Loss%29%20for%20the%20Period) The Group's profit for the period was approximately HKD 3.01 million, compared to a loss of HKD 23.93 million in the prior year, primarily driven by 90.9% revenue growth and a change in fair value of financial assets from a loss of HKD 21.50 million to a gain of HKD 2.57 million - Profit for the period approximately **HKD 3.01 million**, prior year was a loss of **HKD 23.93 million**[55](index=55&type=chunk) - Key drivers: Revenue growth of **90.9%**[55](index=55&type=chunk) - Key drivers: Fair value of financial assets changed from a loss of **HKD 21.50 million** to a gain of **HKD 2.57 million**[55](index=55&type=chunk) [Profit/(Loss) Attributable to Owners of the Company](index=18&type=section&id=Profit%2F%28Loss%29%20Attributable%20to%20Owners%20of%20the%20Company) Profit attributable to owners of the Company changed from a loss of HKD 23.96 million in H1 2024 to a profit of HKD 2.92 million in H1 2025 - Profit attributable to owners of the Company changed from a loss of **HKD 23.96 million** to a profit of **HKD 2.92 million**[56](index=56&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The Group manages cash flow through an internal financial budgeting system, with sales revenue as the primary cash source; the gearing ratio improved, while cash and cash equivalents at period-end slightly decreased [Gearing Ratio](index=18&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio was approximately 119.0%, a decrease from 125.5% as of December 31, 2024, indicating an improved financial structure - Gearing ratio: **119.0%** as of **June 30, 2025**, **125.5%** as of **December 31, 2024**[57](index=57&type=chunk) - Total debt: **HKD 35.83 million** as of **June 30, 2025**, **HKD 34.03 million** as of **December 31, 2024**[57](index=57&type=chunk) - Total capital: **HKD 30.12 million** as of **June 30, 2025**, **HKD 27.11 million** as of **December 31, 2024**[57](index=57&type=chunk) [Cash and Cash Equivalents](index=18&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents were approximately HKD 5.25 million, a decrease from HKD 6.18 million as of December 31, 2024 - Cash and cash equivalents: **HKD 5.25 million** as of **June 30, 2025**, **HKD 6.18 million** as of **December 31, 2024**[60](index=60&type=chunk) [Risk Management](index=18&type=section&id=Risk%20Management) The Group currently has no contingent liabilities, manages risk by monitoring foreign exchange risk and considering hedging, and has no assets pledged [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - No contingent liabilities[61](index=61&type=chunk) [Foreign Exchange Risk Management](index=18&type=section&id=Foreign%20Exchange%20Risk%20Management) Some bank balances are denominated in USD and RMB, exposing the Group to foreign exchange risk, but currently no hedging activities are undertaken, though monitoring and consideration for hedging will continue when necessary - Some bank balances denominated in **USD** and **RMB**, exposed to foreign exchange risk[62](index=62&type=chunk) - Currently no hedging activities, but will monitor and consider hedging when necessary[62](index=62&type=chunk) [Pledge of Group's Assets](index=18&type=section&id=Pledge%20of%20Group's%20Assets) As of June 30, 2025, the Group had not pledged any assets to secure loans - No assets pledged[63](index=63&type=chunk) [Significant Investments](index=19&type=section&id=Significant%20Investments) As of June 30, 2025, the Group held financial assets at fair value through profit or loss with a market value of approximately HKD 45.02 million, primarily invested in Hong Kong listed equity securities, with China Investment and Finance, Juntai Holdings, and Huilon Holdings among the major positions - Fair value of financial assets at fair value through profit or loss approximately **HKD 45.02 million**[64](index=64&type=chunk) Major Listed Investment Portfolio (As of June 30, 2025) | Investee Name | June 30, 2025 Fair Value (thousand HKD) | Percentage of Total Assets | H1 2025 Fair Value Gain/(Loss) (thousand HKD) | | :--- | :--- | :--- | :--- | | China Investment and Finance Group Limited | 16,455 | 24.95% | 1,865 | | Juntai Holdings Limited | 9,774 | 14.82% | 5,430 | | Huilon Holdings Limited | 4,695 | 7.12% | (2,449) | | Wanmin Haowu Holdings Limited | 4,387 | 6.65% | (71) | | Milan Station Holdings Limited | 3,500 | 5.31% | (494) | | Harbour Digital Industry Capital Limited | 2,283 | 3.46% | 87 | | Asia Grocery Distribution Limited | 1,460 | 2.22% | (170) | | **Subtotal** | **42,554** | **64.53%** | **4,198** | | Other Listed Equity Securities | 2,465 | 3.74% | (1,626) | | **Total** | **45,019** | **68.27%** | **2,572** | - Will continue to maintain a diversified investment portfolio and closely monitor market trends[68](index=68&type=chunk) - No other investments exceeding **2%** of the Group's total assets[69](index=69&type=chunk) [Human Resources](index=20&type=section&id=Human%20Resources) As of June 30, 2025, the Group had 25 employees, an increase from 15 at the end of 2024; the Company provides training and development programs, links remuneration to performance, and considers granting share options - Number of employees: **25** as of **June 30, 2025**, **15** as of **December 31, 2024**[70](index=70&type=chunk) - Provides training and development programs, remuneration is linked to individual performance and Group business performance[70](index=70&type=chunk) - Considers granting share options to eligible employees[70](index=70&type=chunk) [Management Outlook](index=20&type=section&id=Management%20Outlook) The Group is committed to business integration and restructuring to improve its financial position, will leverage existing technological knowledge and applications to diversify revenue streams, and continues to build a solid platform for sustainable development and potential growth, including exploring business opportunities such as interactive virtual reality games - Committed to business integration and restructuring to improve financial position[71](index=71&type=chunk) - Will leverage existing technological knowledge and applications to diversify revenue streams[71](index=71&type=chunk) - Continues to build a solid platform for sustainable development and potential growth[71](index=71&type=chunk) - Will continue to explore business opportunities such as interactive virtual reality games[71](index=71&type=chunk) [Future Plans and Significant Matters](index=20&type=section&id=Future%20Plans%20and%20Significant%20Matters) As of June 30, 2025, the Group had no future plans for significant investments or capital assets, nor any significant acquisitions or disposals [Future Plans for Significant Investments or Capital Assets](index=20&type=section&id=Future%20Plans%20for%20Significant%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had no specific plans for significant investments or capital assets - No future plans for significant investments or capital assets[72](index=72&type=chunk) [Significant Acquisitions and Disposals](index=20&type=section&id=Significant%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals - No significant acquisitions or disposals[73](index=73&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) [Corporate Governance Code](index=21&type=section&id=Corporate%20Governance%20Code) The Company adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules - Adopted and complied with the Corporate Governance Code set out in **Appendix C1 of the Listing Rules**[76](index=76&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - No purchase, redemption, or sale of the Company's listed securities during the reporting period[77](index=77&type=chunk) [Directors' Securities Transactions](index=21&type=section&id=Directors%27%20Securities%20Transactions) The Company adopted the Model Code set out in Appendix C3 of the Listing Rules, and Directors confirmed full compliance with the Model Code during the reporting period - Adopted the **Model Code** set out in **Appendix C3 of the Listing Rules**[78](index=78&type=chunk) - Directors confirmed full compliance with the Model Code[79](index=79&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=21&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, no Directors or chief executive held interests or short positions in shares, underlying shares, and debentures required to be disclosed under the Securities and Futures Ordinance or the Model Code - No interests or short positions in shares, underlying shares, and debentures required to be disclosed by Directors or Chief Executive[80](index=80&type=chunk) [Major Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=22&type=section&id=Major%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Pan Junyan, Song Qifeng, and Huang Hao were major shareholders of the Company, holding respectively 20.9%, 7.5%, and 5.1% of the issued share capital Major Shareholders' Shareholdings (As of June 30, 2025) | Name | Capacity | Number of Shares Held (shares) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Pan Junyan | Beneficial Owner | 125,940,000 | 20.9% | | Song Qifeng | Beneficial Owner | 45,318,000 | 7.5% | | Huang Hao | Beneficial Owner | 31,000,000 | 5.1% | [Share Option Scheme](index=22&type=section&id=Share%20Option%20Scheme) The Company currently has no share option scheme in force - No share option scheme currently in force[85](index=85&type=chunk) [Audit Committee](index=22&type=section&id=Audit%20Committee) The Audit Committee comprises three Independent Non-executive Directors and has reviewed the Group's accounting principles, internal controls, and financial reporting matters, including this interim financial information - Audit Committee comprises three Independent Non-executive Directors, with **Mr. Wong Sze Lok** as Chairman[86](index=86&type=chunk) - Reviewed the Group's accounting principles, internal controls, and financial reporting matters, including this interim financial information[86](index=86&type=chunk) [Suspension of Trading](index=23&type=section&id=Suspension%20of%20Trading) Trading in the Company's shares has been suspended since April 2, 2024, due to the auditor's disclaimer of opinion on the financial statements; the Company is taking steps to comply with the Stock Exchange's resumption guidance - Trading in shares suspended since **April 2, 2024**[87](index=87&type=chunk) - Reason for suspension: Auditor's disclaimer of opinion on financial statements[87](index=87&type=chunk) - Company is taking steps to comply with the Stock Exchange's resumption guidance[87](index=87&type=chunk) [Events After Reporting Period](index=23&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period as of the report date - No significant events after the reporting period[88](index=88&type=chunk) [Board of Directors and Acknowledgement](index=23&type=section&id=Board%20of%20Directors%20and%20Acknowledgement) Board of Directors' information reconfirmed, and Executive Director Mr. Lam Chi Ka, on behalf of the Board, expressed gratitude to shareholders, business partners, customers, management team, and employees - Board Members: **Mr. Lam Chi Ka** (Executive Director), **Ms. Pang Ching Yee**, **Mr. Tse Tung Leung**, **Mr. Wong Sze Lok** (Independent Non-executive Directors)[89](index=89&type=chunk) - Expressed gratitude to shareholders, business partners, customers, management team, and employees[90](index=90&type=chunk)

Corporate Information [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) This section outlines the composition of the company's Board of Directors and its various committees, noting recent appointments and resignations - The Board consists of executive directors Mr Xu Youjiang (Chairman), Ms Xu Liping, and Mr Zhang Yuansheng, and independent non-executive directors Mr Cheung Sze Tze, Mr Liu Dajin, and Mr Yang Jie (newly appointed)[8](index=8&type=chunk) - Mr Yang Jie was appointed as an independent non-executive director, Chairman of the Remuneration Committee, and a member of the Nomination and Audit Committees on **June 26, 2025**[8](index=8&type=chunk) - Mr Tang Chi Fai resigned as an independent non-executive director and from his committee roles on **June 26, 2025**[8](index=8&type=chunk) [Corporate Profile](index=4&type=section&id=Corporate%20Profile) This section provides fundamental corporate information, including the auditor, principal bankers, registered office, and key business locations - The auditor is Grant Thornton Hong Kong Limited[9](index=9&type=chunk) - The company's website is www.yikwo.cn, and its stock code is 8659[10](index=10&type=chunk) - The company has a registered office in the Cayman Islands and principal places of business in Jinjiang City, Fujian Province, China, and Kwun Tong, Kowloon, Hong Kong[10](index=10&type=chunk) Management Discussion and Analysis [Business Review and Prospects](index=6&type=section&id=Business%20Review%20and%20Prospects) The Group's revenue declined due to weak market demand for its core plastic food container business, prompting diversification into film projects and e-commerce - The Group's core business is the production and sale of disposable plastic food containers, supplemented by mobile application and e-commerce platform operations[12](index=12&type=chunk) - For the six months ended June 30, 2025, the Group's revenue decreased, primarily due to **weak market demand for disposable plastic food containers**[13](index=13&type=chunk) - Future strategies include promoting eco-friendly food containers, enhancing production technology, expanding sales channels, and product customization[14](index=14&type=chunk) - The Group completed the acquisition of the entire equity of Yizhen Film and Media Co, Ltd to invest in film projects and capitalize on opportunities in China's film industry[15](index=15&type=chunk) - The Group acquired 100% of Beijing Youpinhui and launched the "Yi He Tian Xia" e-commerce platform in July 2022[16](index=16&type=chunk) - The Group entered into an MOU for the potential acquisition of a **30% equity interest in Beijing Zhenpin Network Technology Co, Ltd** to expand revenue sources and stabilize the e-commerce supply chain[17](index=17&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) The Group's financial performance declined significantly in the first half of 2025, with substantial decreases in revenue, gross profit, and net profit 2025 Interim Key Financial Data Comparison | Indicator | Six Months Ended June 30, 2025 (RMB in thousands) | Six Months Ended June 30, 2024 (RMB in thousands) | Change (RMB in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 109,517 | 155,828 | (46,311) | (29.7%) | | Cost of sales | (78,326) | (109,627) | 31,301 | (28.6%) | | Gross profit | 31,191 | 46,201 | (15,010) | (32.5%) | | Gross profit margin | 28.5% | 29.6% | (1.1%) | - | | Selling expenses | (6,220) | (8,850) | 2,630 | (30.3%) | | Administrative and other operating expenses | (12,471) | (12,734) | 263 | (1.6%) | | Finance costs | (86) | (140) | 54 | (38.6%) | | Income tax expense | (4,102) | (6,992) | 2,890 | (41.4%) | | Profit for the period | 8,951 | 18,765 | (9,814) | (52.1%) | - The decrease in selling expenses was mainly due to reduced promotional efforts[22](index=22&type=chunk) - The decrease in administrative and other operating expenses was primarily due to lower staff costs[23](index=23&type=chunk) - The significant decrease in profit for the period was mainly attributable to a **decrease in gross profit of approximately RMB15.0 million**[26](index=26&type=chunk) [GEM Listing and Proposed Transfer of Listing](index=8&type=section&id=GEM%20Listing%20and%20Proposed%20Transfer%20of%20Listing) The company is pursuing a transfer of its listing from GEM to the Main Board of the Stock Exchange, having resubmitted its application in May 2024 - The company's shares were listed on GEM of the Stock Exchange on July 13, 2020, raising net proceeds of **HKD22.8 million** (approximately RMB20.4 million)[27](index=27&type=chunk) - The transfer of listing application submitted on May 31, 2023, has automatically lapsed[27](index=27&type=chunk) - The company resubmitted its application for the transfer of listing on **May 9, 2024**, under Chapter 9B of the Main Board Listing Rules[28](index=28&type=chunk) [Liquidity and Financial Resources](index=9&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity position improved as of June 30, 2025, with increased net current assets, a higher current ratio, and a lower gearing ratio Key Indicators of Liquidity and Financial Resources | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | Change (RMB in millions) | | :--- | :--- | :--- | :--- | | Net current assets | 261.5 | 247.7 | 13.8 | | Current ratio | 8.7 | 6.1 | 2.6 | | Gearing ratio | 11.5% | 16.1% | (4.6%) | | Bank balances and cash | 213.9 | 206.1 | 7.8 | | Lease liabilities | 2.8 | 4.2 | (1.4) | - The increase in net current assets was mainly due to a decrease in trade and other payables[29](index=29&type=chunk) - The increase in bank balances and cash was primarily attributable to net cash generated from operating activities[31](index=31&type=chunk) - The Group had **no borrowings** as of June 30, 2025, and December 31, 2024[32](index=32&type=chunk) [Capital Structure](index=9&type=section&id=Capital%20Structure) The Group's capital structure, consisting solely of ordinary shares, has remained stable since its GEM listing in 2020 - There have been **no significant changes** to the Group's capital structure since its GEM listing, with share capital comprising only ordinary shares[34](index=34&type=chunk) - As of June 30, 2025, the issued share capital was approximately **HKD7.5 million**, representing 748,482,760 issued ordinary shares of HKD0.01 each[34](index=34&type=chunk) - The Group has a consideration payable of **RMB6.2 million** for the acquisition of 100% equity in Yizhen Film, which is interest-free and repayable upon the movie's release[34](index=34&type=chunk) [Segment Information](index=9&type=section&id=Segment%20Information) The Group's operations are organized into two main business segments: disposable plastic food containers and e-commerce platform operations - The Group has two operating segments: the disposable plastic food containers business and the mobile application and e-commerce platform business[35](index=35&type=chunk) [Future Plans for Material Investments and Capital Assets](index=9&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) The Group had no plans for material investments or capital assets as of June 30, 2025 - As of June 30, 2025, the Group had **no plans for material investments and capital assets**[36](index=36&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries](index=10&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) The Group did not engage in any material investment, acquisition, or disposal activities during the first half of 2025 - During the period, there were **no material investments, acquisitions, or disposals** that constituted a disclosable transaction under the GEM Listing Rules[38](index=38&type=chunk) [Pledge of Group's Assets](index=10&type=section&id=Pledge%20of%20Group's%20Assets) The Group had no pledged assets as of June 30, 2025 - As of June 30, 2025, the Group had **no pledged assets**[39](index=39&type=chunk) [Contingent Liabilities](index=10&type=section&id=Contingent%20Liabilities) The Group had no contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had **no contingent liabilities**[40](index=40&type=chunk) [Foreign Exchange Fluctuation Risk](index=10&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The Group faces no significant foreign exchange risk as its operations and transactions are primarily conducted in RMB - The Group operates mainly in China with transactions settled in RMB, resulting in **no significant foreign exchange risk**[41](index=41&type=chunk) - No financial instruments were used for hedging purposes during the period[41](index=41&type=chunk) [Employees and Remuneration Policies](index=10&type=section&id=Employees%20and%20Remuneration%20Policies) The Group's employee count and staff costs slightly decreased in the first half of 2025, with remuneration based on a fixed salary and appraisal system - As of June 30, 2025, the Group had **192 employees** (December 31, 2024: 203)[42](index=42&type=chunk) - Staff costs, including directors' remuneration, were approximately **RMB9.6 million** for the period (2024 equivalent period: approximately RMB9.7 million)[42](index=42&type=chunk) - The remuneration policy is based on a fixed salary and an appraisal system[42](index=42&type=chunk) [Disclosure of Interests](index=11&type=section&id=Disclosure%20of%20Interests) This section details the interests and short positions in the company's shares held by directors, chief executives, and substantial shareholders A. Directors' and Chief Executive's Interests and Short Positions in Shares (as at June 30, 2025) | Name of Director | Capacity/Nature of Interest | Number and Class of Securities | Long/Short Position | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Mr Xu Youjiang | Interest in a controlled corporation (Prize Investment Limited) | 301,500,000 ordinary shares | Long | 40.28% | | | Beneficial owner | 74,482,760 ordinary shares | Long | 9.95% | | | **Total** | **375,982,760 ordinary shares** | **Long** | **50.23%** | | Ms Xu Liping | Interest of spouse (Spouse of Mr Xu Youjiang) | 375,982,760 ordinary shares | Long | 50.23% | B. Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares (as at June 30, 2025) | Name | Capacity | Number and Class of Securities | Long/Short Position | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Prize Investment Limited | Beneficial owner | 301,500,000 ordinary shares | Long | 40.28% | | Mr Xu Youjiang | Beneficial owner | 74,482,760 ordinary shares | Long | 9.95% | | | **Total** | **375,982,760 ordinary shares** | **Long** | **50.23%** | | Merit Winner Limited | Beneficial owner | 67,500,000 ordinary shares | Long | 9.02% | | Mr Xu Wenjie | Interest in a controlled corporation (Merit Winner Limited) | 67,500,000 ordinary shares | Long | 9.02% | | Ms Xu Meiya | Interest of spouse (Spouse of Mr Xu Wenjie) | 67,500,000 ordinary shares | Long | 9.02% | | Youpinhui Investment | Beneficial owner | 64,000,000 ordinary shares | Long | 8.55% | | Mr Hu Kun | Interest in a controlled corporation (Youpinhui Investment) | 64,000,000 ordinary shares | Long | 8.55% | [Competition and Conflict of Interests](index=13&type=section&id=Competition%20and%20Conflict%20of%20Interests) No directors or controlling shareholders held interests in businesses that compete or may compete with the Group's business - During the period, **no director, controlling shareholder, or their respective associates had any competing business or conflict of interest**[47](index=47&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=13&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) The company and its subsidiaries did not engage in any trading of the company's own listed securities during the period - During the period, neither the company nor any of its subsidiaries **purchased, sold, or redeemed any of the company's listed securities**[48](index=48&type=chunk) [Corporate Governance Code](index=13&type=section&id=Corporate%20Governance%20Code) The company has complied with the applicable code provisions of the Corporate Governance Code as set out in the GEM Listing Rules - The company has complied with the Corporate Governance Code in Appendix C1 of the GEM Listing Rules[49](index=49&type=chunk) - The roles of Chairman (Mr Xu Youjiang) and Chief Executive Officer (Ms Xu Liping) are separate and held by different individuals[49](index=49&type=chunk) [Directors' Securities Transactions](index=13&type=section&id=Directors'%20Securities%20Transactions) The Group has adopted a code of conduct for directors' securities transactions that is no less stringent than the required standard of dealings - The Group has adopted a code of conduct for directors' securities transactions in compliance with the GEM Listing Rules[50](index=50&type=chunk) - **No incidents of non-compliance** by any director with the code of conduct were found during the period[50](index=50&type=chunk) [Dividend](index=13&type=section&id=Dividend) The Board does not recommend the payment of an interim dividend for the first half of 2025 - The Board does not recommend the payment of an interim dividend for the first half of 2025 (2024: Nil)[51](index=51&type=chunk) [Share Option Scheme](index=13&type=section&id=Share%20Option%20Scheme) The company did not have a share option scheme as of June 30, 2025 - As of June 30, 2025, the company **did not have a share option scheme**[52](index=52&type=chunk) [Material Events After the Reporting Period](index=14&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) No material events requiring disclosure occurred between the end of the reporting period and the date of this report - There were **no material events requiring disclosure** after the reporting period and up to the date of this report[53](index=53&type=chunk) [Changes in Directors' Information](index=14&type=section&id=Changes%20in%20Directors'%20Information) Mr Yang Jie was appointed as an independent non-executive director and to several board committees on June 26, 2025 - Mr Yang Jie was appointed as an independent non-executive director and a member of several committees on **June 26, 2025**[54](index=54&type=chunk) - There were **no other material changes** in directors' information since the date of the 2024 annual report[54](index=54&type=chunk) [Audit Committee](index=14&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's unaudited interim financial statements - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[56](index=56&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr Cheung Sze Tze (Chairman), Mr Liu Dajin, and Mr Yang Jie[55](index=55&type=chunk) - Its primary duties include reviewing financial reporting, overseeing the audit process, internal controls, and corporate governance[55](index=55&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue and profit for the period both experienced a significant decline in the first half of 2025 compared to the same period in 2024 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue | 109,517 | 155,828 | | Cost of sales | (78,326) | (109,627) | | Gross profit | 31,191 | 46,201 | | Other income | 639 | 1,280 | | Selling expenses | (6,220) | (8,850) | | Administrative and other operating expenses | (12,471) | (12,734) | | Operating profit | 13,139 | 25,897 | | Finance costs | (86) | (140) | | Profit before income tax | 13,053 | 25,757 | | Income tax expense | (4,102) | (6,992) | | Profit for the period | 8,951 | 18,765 | | Other comprehensive income, net of tax: Exchange differences on translation of foreign operations recognised | 2 | 37 | | Total comprehensive income for the period | 8,953 | 18,802 | | Earnings per share attributable to equity holders of the Company (basic and diluted) | RMB1.20 cents | RMB2.51 cents | Condensed Consolidated Statement of Financial Position [Condensed Consolidated Statement of Financial Position](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) The Group's financial position remained solid, with increases in net current assets, total assets less current liabilities, and total equity as of June 30, 2025 Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 37,773 | 42,947 | | Current assets | 295,688 | 296,300 | | **Liabilities** | | | | Current liabilities | 34,142 | 48,593 | | Non-current liabilities | 1,921 | 2,209 | | **Equity** | | | | Share capital | 6,667 | 6,667 | | Reserves | 290,731 | 281,778 | | Total equity | 297,398 | 288,445 | | Net current assets | 261,546 | 247,707 | | Total assets less current liabilities | 299,319 | 290,654 | Condensed Consolidated Statement of Changes in Equity [Condensed Consolidated Statement of Changes in Equity](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total equity increased during the first half of 2025, primarily driven by the profit generated during the period Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | Share Capital (RMB in thousands) | Share Premium (RMB in thousands) | Other Reserve (RMB in thousands) | Exchange Reserve (RMB in thousands) | Retained Earnings (RMB in thousands) | Total (RMB in thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | At January 1, 2024 | 6,667 | 83,348 | 26,091 | (408) | 145,481 | 261,179 | | Profit for the period (2024) | — | — | — | — | 18,765 | 18,765 | | Other comprehensive income: Exchange differences on translation of foreign operations recognised (2024) | — | — | — | 37 | — | 37 | | Total comprehensive income for the period (2024) | — | — | — | 37 | 18,765 | 18,802 | | At June 30, 2024 (unaudited) | 6,667 | 83,348 | 26,091 | (371) | 164,246 | 279,981 | | At January 1, 2025 | 6,667 | 83,348 | 26,091 | (356) | 172,695 | 288,445 | | Profit for the period (2025) | — | — | — | — | 8,951 | 8,951 | | Other comprehensive income: Exchange differences on translation of foreign operations recognised (2025) | — | — | — | 2 | — | 2 | | Total comprehensive income for the period (2025) | — | — | — | 2 | 8,951 | 8,953 | | At June 30, 2025 (unaudited) | 6,667 | 83,348 | 26,091 | (354) | 181,646 | 297,398 | Condensed Consolidated Statement of Cash Flows [Condensed Consolidated Statement of Cash Flows](index=18&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group's cash position improved in the first half of 2025, driven by a significant increase in net cash generated from operating activities Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Net cash generated from operating activities | 11,783 | 7,617 | | Cash flows used in investing activities | (2,531) | (2,400) | | Cash flows used in financing activities | (1,539) | (1,697) | | Net increase in cash and cash equivalents | 7,713 | 3,520 | | Cash and cash equivalents at beginning of period | 206,143 | 165,252 | | Effect of exchange rate changes | 7 | 18 | | Cash and cash equivalents at end of period | 213,863 | 168,790 | - The **significant increase in net cash from operating activities** was the main driver of the increase in cash and cash equivalents[62](index=62&type=chunk) - Cash flows used in investing activities primarily included the purchase of property, plant and equipment[62](index=62&type=chunk) Notes to the Interim Financial Report [1. General Information](index=19&type=section&id=1.%20General%20Information) The company, incorporated in the Cayman Islands, primarily engages in the plastic food container business and e-commerce operations in China - The company was incorporated in the Cayman Islands on **December 13, 2018**[63](index=63&type=chunk) - Its principal activities are the production and sale of disposable plastic food containers and the operation of an e-commerce platform[63](index=63&type=chunk) - Mr Xu Youjiang is the ultimate controlling party of the Group[64](index=64&type=chunk) [2. Basis of Preparation](index=19&type=section&id=2.%20Basis%20of%20Preparation) The unaudited interim financial information has been prepared in accordance with HKAS 34 and the disclosure requirements of the GEM Listing Rules - The financial information is prepared in accordance with the GEM Listing Rules and Hong Kong Accounting Standard (HKAS) 34[65](index=65&type=chunk) - The information is unaudited, presented in thousands of RMB, and was approved for issue by the Board of Directors on **August 28, 2025**[66](index=66&type=chunk) [3. Significant Accounting Policies](index=19&type=section&id=3.%20Significant%20Accounting%20Policies) The accounting policies adopted are consistent with the 2024 annual financial statements, except for new HKFRS standards effective from January 1, 2025 - The accounting policies are consistent with the 2024 annual consolidated financial statements, except for the adoption of new and revised Hong Kong Financial Reporting Standards (HKFRS) effective January 1, 2025[67](index=67&type=chunk) - The adoption of new and revised HKFRS, such as amendments to HKAS 21 on Lack of Exchangeability, had **no material impact** on the results and financial position[68](index=68&type=chunk)[69](index=69&type=chunk) - The Group has not applied any new standards, interpretations, or amendments that are not yet effective for the current accounting period[70](index=70&type=chunk) [4. Estimates and Judgements](index=20&type=section&id=4.%20Estimates%20and%20Judgements) The preparation of the financial information requires management to make judgements and estimates that are consistent with those applied in the 2024 annual report - The preparation of financial information involves accounting judgements, estimates, and assumptions, where actual results may differ[71](index=71&type=chunk) - The key sources of estimation uncertainty and critical judgements are the **same as those applied in the 2024 annual consolidated financial statements**[71](index=71&type=chunk) [5. Segment Information](index=20&type=section&id=5.%20Segment%20Information) The Group's disposable plastic food container segment remained profitable but saw declining revenue, while the e-commerce segment shifted from a profit to a loss Analysis of Revenue and Results by Operating and Reportable Segment (For the six months ended June 30) | Indicator (RMB in thousands) | Disposable Plastic Food Containers (2025) | E-commerce (2025) | Total (2025) | Disposable Plastic Food Containers (2024) | E-commerce (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from external customers | 108,278 | 1,239 | 109,517 | 143,720 | 12,108 | 155,828 | | Segment results | 15,984 | (2,013) | 13,971 | 27,236 | 1,123 | 28,359 | | Unallocated expenses | | | (918) | | | (2,602) | | Profit before income tax | | | 13,053 | | | 25,757 | | Profit for the period | | | 8,951 | | | 18,765 | Analysis of Assets and Liabilities by Operating and Reportable Segment (As at June 30, 2025) | Indicator (RMB in thousands) | Disposable Plastic Food Containers (2025) | E-commerce (2025) | Unallocated (2025) | Total (2025) | Disposable Plastic Food Containers (2024) | E-commerce (2024) | Unallocated (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Reportable segment assets | 306,126 | 8,272 | 19,063 | 333,461 | 310,394 | 8,386 | 20,467 | 339,247 | | Reportable segment liabilities | 23,120 | 4,971 | 7,972 | 36,063 | 39,270 | 4,935 | 6,597 | 50,802 | - The e-commerce segment recorded a **loss in the first half of 2025**, compared to a profit in the same period of 2024[74](index=74&type=chunk) [6. Revenue](index=22&type=section&id=6.%20Revenue) The Group's total revenue declined significantly, driven by a sharp drop in sales of "Jazz Rabbit" branded products and e-commerce goods Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30) | Product Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Brand:** | | | | "Jazz Rabbit" branded products | 97,644 | 133,038 | | Non-branded products (food containers) | 10,634 | 10,682 | | Total disposable plastic food containers | 108,278 | 143,720 | | Non-branded e-commerce (necessities and other household products) | 1,239 | 12,108 | | **Total revenue** | **109,517** | **155,828** | | **Nature:** | | | | Regular products | 67,570 | 123,119 | | Customised products | 39,740 | 18,904 | | Others (food containers) | 968 | 1,697 | | Non-branded e-commerce | 1,239 | 12,108 | - All revenue was derived from China[79](index=79&type=chunk) - Revenue from **customised products grew significantly** year-on-year, while revenue from regular products declined sharply[78](index=78&type=chunk) [7. Other Income](index=24&type=section&id=7.%20Other%20Income) The Group's other income decreased in the first half of 2025, mainly due to lower bank interest and miscellaneous income Other Income (For the six months ended June 30) | Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Bank interest income | 94 | 155 | | Interest income (Note 16) | 514 | 514 | | Others | 31 | 611 | | **Total** | **639** | **1,280** | [8. Finance Costs](index=24&type=section&id=8.%20Finance%20Costs) The Group's finance costs, related to interest expenses on lease arrangements, decreased during the period Finance Costs (For the six months ended June 30) | Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Interest expenses on lease arrangements | 86 | 140 | [9. Profit Before Income Tax](index=25&type=section&id=9.%20Profit%20Before%20Income%20Tax) Profit before income tax was arrived at after accounting for various expenses, including depreciation, amortization, R&D, and transfer of listing costs Items Deducted from Profit Before Income Tax (For the six months ended June 30) | Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Depreciation (owned) | 5,122 | 5,934 | | Depreciation (held under leases) | 1,009 | 1,113 | | Amortisation of intangible assets included in administrative and other operating expenses | 1,304 | 1,533 | | Cost of inventories recognised as an expense | 66,537 | 86,711 | | Research and development costs (including staff costs) | 5,461 | 4,960 | | Loss on disposal of property, plant and equipment | 364 | 31 | | Transfer of listing and related expenses | 1,371 | 983 | | Staff costs (including directors' remuneration): Salaries, allowances and other benefits | 8,095 | 8,809 | | Staff costs (including directors' remuneration): Contributions to defined contribution retirement plans | 1,482 | 860 | | **Total staff costs** | **9,577** | **9,669** | [10. Income Tax Expense](index=25&type=section&id=10.%20Income%20Tax%20Expense) The Group's income tax expense, arising solely from China Enterprise Income Tax, decreased in line with lower taxable profits Income Tax Expense (For the six months ended June 30) | Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Current tax: Provision for China Enterprise Income Tax | 4,102 | 6,992 | - China Enterprise Income Tax is calculated at the applicable rate of **25%**[84](index=84&type=chunk) - **No provision for profits tax** was made for the company and its Hong Kong operations as there were no assessable profits[83](index=83&type=chunk) [11. Dividend](index=26&type=section&id=11.%20Dividend) The directors do not recommend the payment of an interim dividend for the first half of 2025 - The directors do not recommend the payment of an interim dividend for the first half of 2025 (2024: Nil)[86](index=86&type=chunk) [12. Earnings Per Share](index=26&type=section&id=12.%20Earnings%20Per%20Share) The Group's basic and diluted earnings per share for the period was RMB1.20 cents, with no potential dilutive ordinary shares outstanding Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Earnings: Profit for the period attributable to equity holders of the Company for the purpose of calculating basic earnings per share (RMB in thousands) | 8,951 | 18,765 | | Number of shares: Number of ordinary shares for the purpose of calculating basic earnings per share (in thousands) | 748,483 | 748,483 | | Basic and diluted earnings per share | RMB1.20 cents | RMB2.51 cents | - Diluted earnings per share is equal to basic earnings per share as there were **no potential dilutive ordinary shares** in issue[88](index=88&type=chunk) [13. Property, Plant and Equipment](index=26&type=section&id=13.%20Property%2C%20Plant%20and%20Equipment) The Group acquired new property, plant, and equipment and recorded a loss on the disposal of certain assets during the period - During the period, the Group acquired property, plant and equipment of approximately **RMB2,625 thousand** (2024 equivalent period: RMB2,555 thousand)[89](index=89&type=chunk) - Plant and equipment with a total carrying amount of **RMB364 thousand** were disposed of, resulting in a loss on disposal of RMB364 thousand (2024 equivalent period: RMB31 thousand)[89](index=89&type=chunk) [14. Lease Liabilities](index=27&type=section&id=14.%20Lease%20Liabilities) The Group's lease liabilities, primarily for office and factory properties, decreased as of June 30, 2025 Lease Liabilities (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current portion | 867 | 2,032 | | Non-current portion | 1,921 | 2,209 | | **Total** | **2,788** | **4,241** | - Lease liabilities are mainly related to the leasing of office and factory properties[91](index=91&type=chunk) - The lease agreement with Hengsheng Toys (a related party) has a term of three years, renewable for another three years, and can be extended up to a maximum of twenty years by negotiation[91](index=91&type=chunk) [15. Intangible Assets](index=29&type=section&id=15.%20Intangible%20Assets) The net book value of the Group's intangible assets, including application development costs and patents, decreased due to amortization Net Book Value of Intangible Assets (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Mobile application development costs | 335 | 1,151 | | Know-how patents | 2,064 | 2,552 | | Trademark | — | — | | **Total** | **2,399** | **3,703** | - The amortization charge for intangible assets during the period was **RMB1,304 thousand**[93](index=93&type=chunk) [16. Financial Assets at Fair Value Through Profit or Loss](index=29&type=section&id=16.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group's investment in a film production, classified as a financial asset at FVTPL, remained unchanged in value and is expected to be released in 2025 Financial Assets at FVTPL (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investment in film production | 20,416 | 20,416 | - The investment in film production, through a **100% equity interest in Yizhen Film**, entitles the Group to a share of the film project's revenue[95](index=95&type=chunk)[96](index=96&type=chunk) - The film production has been completed and is expected to be released in **2025**[98](index=98&type=chunk)[99](index=99&type=chunk) - The controlling shareholder, Mr Xu, pays a **5% annual penalty interest** (RMB514 thousand) until the film's release[99](index=99&type=chunk) [17. Inventories](index=30&type=section&id=17.%20Inventories) The Group's total inventory level saw a slight increase, with a rise in finished goods and a decrease in raw materials Inventories (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | 3,889 | 4,966 | | Finished goods | 5,739 | 4,140 | | **Total** | **9,628** | **9,106** | [18. Trade and Other Receivables](index=31&type=section&id=18.%20Trade%20and%20Other%20Receivables) The Group's total trade and other receivables decreased, although there was a significant increase in receivables aged between 61 and 90 days Trade and Other Receivables (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (from third parties) | 48,228 | 59,975 | | Prepayments and other receivables | 3,553 | 660 | | **Total** | **51,781** | **60,635** | Ageing Analysis of Trade Receivables (RMB in thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 17,666 | 31,552 | | 31 to 60 days | 22,318 | 27,628 | | 61 to 90 days | 8,244 | 795 | | **Total** | **48,228** | **59,975** | - The credit period is generally **60 days**[102](index=102&type=chunk) - Trade receivables aged **61 to 90 days increased significantly**[103](index=103&type=chunk) [19. Cash and Cash Equivalents](index=32&type=section&id=19.%20Cash%20and%20Cash%20Equivalents) The Group's cash and bank balances are primarily denominated in RMB and held in banks in China, subject to foreign exchange controls - As of June 30, 2025, bank balances and cash amounted to approximately **RMB213,725 thousand** (December 31, 2024: approximately RMB205,981 thousand)[105](index=105&type=chunk) - The funds are mainly denominated in RMB and deposited with banks in China[105](index=105&type=chunk) - RMB is not a freely convertible currency and is subject to **foreign exchange controls in China**[105](index=105&type=chunk) [20. Trade and Other Payables](index=32&type=section&id=20.%20Trade%20and%20Other%20Payables) The Group's trade and other payables decreased, with a notable portion being the consideration payable for the acquisition of Yizhen Film Trade and Other Payables (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables (to third parties) | 17,126 | 27,865 | | Accrued expenses and other payables | 14,169 | 15,290 | | Of which: Consideration payable (Note (i)) | 6,171 | 6,171 | | **Total** | **31,295** | **43,155** | Ageing Analysis of Trade Payables (RMB in thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 15,089 | 18,089 | | 31 to 60 days | 2,037 | 9,776 | | **Total** | **17,126** | **27,865** | - The consideration payable relates to promissory notes for the acquisition of 100% equity in Yizhen Film, which are interest-free and repayable on demand upon the public release of the movie in China[108](index=108&type=chunk) [21. Share Capital](index=34&type=section&id=21.%20Share%20Capital) The company's share capital structure, comprising ordinary shares with a par value of HKD0.01 each, remained unchanged Share Capital (RMB in thousands) | Category | Number of Ordinary Shares | RMB in thousands | | :--- | :--- | :--- | | Authorised: At December 31, 2024 (audited) and June 30, 2025 (unaudited) | 5,000,000,000 | 45,147 | | Issued and fully paid: At December 31, 2024 (audited) and June 30, 2025 (unaudited) | 748,482,760 | 6,667 | - The ordinary shares of the company have a par value of **HKD0.01 each**[109](index=109&type=chunk) [22. Related Party Transactions](index=34&type=section&id=22.%20Related%20Party%20Transactions) The Group's related party transactions during the period consisted solely of compensation for key management personnel Key Management Personnel Remuneration (RMB in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Salaries, allowances and benefits | 479 | 477 | | Retirement scheme contributions | 9 | 9 | | **Total** | **488** | **486** |