（ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） （股份代號：804） 截至2025年6月30日止六個月之未經審核中期業績公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Pinestone Capital Limited 鼎石資本有限公司 簡明綜合全面收入表 截至2025年6月30日止六個月 截至6月30日止六個月 | | | 2025年 | 2024年 | | --- | --- | --- | --- | | | | （未經審核） | （未經審核） | | | 附註 | 千港元 | 千港元 | | 收益 | 4 | 16,875 | 10,715 | | 其他收入 | 6 | 506 | 52 | | 佣金及費用開支 | | (1,057) | (510) | | 僱員福利開支 | | (3,947) | (3,013) | | 折舊 | | (6) | (487) | | 貿易應收款項及應收貸款減值虧損，淨額 | | – | ...

截至2025年6月30日止六個月的中期業績公佈 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任 何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 SKYWORTH GROUP LIMITED 創 維 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：00751） 創維集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）乃一間投資控股公司，其附屬公 司主要從事生産及銷售智能電視、家庭接入系統、光伏產品、智能白家電產品、智能製造、互聯 網增值服務、物業發展、持有物業、現代服務及買賣其他產品。 | 財務摘要 | | | | | --- | --- | --- | --- | | | 截至6月30日止六個月 | | | | | 2025年 | 2024年 | | | | 人民幣百萬元 | 人民幣百萬元 | 變動 | | 總營業額 | 36,264 | 30,153 | 20.3% | | 毛利 | 4,468 | 4,151 | 7.6% | | 本期溢利 | 365 | 714 | ...

Interim Results Announcement Summary [Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Revenue slightly increased by 0.4% and operating profit before fair value changes of investment properties rose by 7.0%, but loss attributable to shareholders significantly increased by 121.4% due to fair value losses and finance costs, with an interim dividend of HK 2 cents per share Key Financial Data for H1 2025 | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 204,300 | 203,500 | +0.4% | | Operating Profit Before Fair Value Changes of Investment Properties | 103,700 | 96,900 | +7.0% | | Loss Attributable to Company Shareholders | (159,400) | (72,000) | +121.4% | | Net Asset Value Per Share (as at June 30) | HKD 13.4 | N/A | N/A | | Interim Dividend (Per Share) | HK 2 cents | HK 2 cents | 0% | - The loss attributable to company shareholders was primarily due to fair value losses on investment properties and finance costs from bank borrowings, with fair value losses being a non-cash item[103](index=103&type=chunk) Unaudited Results [Condensed Consolidated Income Statement](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) The Group's total revenue slightly increased, but a net loss for the period significantly expanded from the prior year, mainly due to fair value changes of investment properties and higher finance costs Condensed Consolidated Income Statement Summary (HKD thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | 204,329 | 203,545 | | Operating Profit Before Fair Value Changes of Investment Properties | 103,719 | 96,853 | | Fair Value Changes of Investment Properties | (102,665) | – | | Finance Costs | (150,568) | (187,324) | | Loss for the Period | (159,388) | (72,046) | | Basic and Diluted Loss Per Share (HK cents) | (26.5) | (12.0) | - Fair value changes of investment properties shifted from no change in the prior period to a loss of **HKD 102,665 thousands** in the current period, a key factor contributing to the expanded loss[8](index=8&type=chunk) - Finance costs decreased by **19.6%** year-on-year, from **HKD 187,324 thousands** to **HKD 150,568 thousands**[8](index=8&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group recorded a total comprehensive expense for the period, despite improvements in other comprehensive income items, which could not fully offset the loss for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (HKD thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the Period | (159,388) | (72,046) | | Other Comprehensive Income (Expense) | 140,179 | (6,687) | | Total Comprehensive Expense Attributable to Company Shareholders for the Period | (19,209) | (78,733) | - Exchange differences arising from translation of foreign operations shifted from a loss of **HKD 7,706 thousands** in 2024 to a gain of **HKD 119,193 thousands** in 2025, significantly impacting other comprehensive income positively[20](index=20&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&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, investment properties increased, but cash and cash equivalents significantly decreased, while total equity slightly declined and non-current bank borrowings reduced Condensed Consolidated Statement of Financial Position Summary (HKD thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Investment Properties | 6,838,350 | 6,682,012 | | Cash and Cash Equivalents | 1,785,066 | 2,447,750 | | Net Current Assets | 1,015,749 | 1,517,395 | | Total Equity | 3,886,181 | 3,923,454 | | Non-current Bank Borrowings | 5,225,852 | 5,600,815 | - Net current assets decreased from **HKD 1,517,395 thousands** as of December 31, 2024, to **HKD 1,015,749 thousands** as of June 30, 2025[26](index=26&type=chunk) - Non-current bank borrowings decreased by **HKD 374,963 thousands**, contributing to capital structure optimization[32](index=32&type=chunk) Notes [Basis of Preparation](index=7&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and Listing Rules disclosure requirements - The financial statements comply with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[38](index=38&type=chunk) [Accounting Policies](index=7&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) These condensed consolidated financial statements are primarily prepared on a historical cost basis, with investment properties and certain financial instruments measured at fair value, and new HKFRS amendments had no significant impact - Accounting policies are consistent with the 2024 annual financial statements, except for the first-time application of HKAS 21 (Amendment) 'Lack of Exchangeability', which had no significant impact[39](index=39&type=chunk)[40](index=40&type=chunk) [Segment Information](index=7&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's main operating segments include property development, property investment, hotel operations, and financial investments, with property investment recording a loss due to fair value decrease, and financial investments achieving significant profit growth Segment Revenue and Results Summary (HKD thousands) | Segment | 2025 Revenue | 2025 Results | 2024 Revenue | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Property Development | – | (13,076) | – | 18,735 | | Property Investment | 108,296 | (478) | 100,905 | 96,408 | | Hotel Operations | 82,165 | 7,308 | 90,897 | 10,189 | | Financial Investments | 13,868 | 26,486 | 11,743 | 9,675 | | Consolidated Total | 204,329 | 20,240 | 203,545 | 135,007 | - Property investment segment results include a fair value decrease of investment properties by **HKD 103,693 thousands**, with no such change in the prior period[48](index=48&type=chunk) - Financial investments segment results significantly increased from **HKD 9,675 thousands** in 2024 to **HKD 26,486 thousands** in 2025[48](index=48&type=chunk) [Revenue](index=9&type=section&id=%E6%94%B6%E7%9B%8A) The Group's revenue primarily derives from investment property rentals, hotel operations, and financial investment returns, with rental income increasing and hotel revenue decreasing Revenue Sources Summary (HKD thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Investment Property Rentals | 108,296 | 100,905 | | Hotel Operations | 82,165 | 90,897 | | Financial Investment Returns (Interest Income and Others) | 13,868 | 11,743 | | **Total Revenue** | **204,329** | **203,545** | - Hotel operations revenue decreased, primarily due to a decline in hotel room revenue from **HKD 75,055 thousands** to **HKD 66,248 thousands**[60](index=60&type=chunk) - Interest income and other financial investment returns increased from **HKD 11,743 thousands** to **HKD 13,868 thousands**, mainly driven by higher interest income from listed debt securities and fixed deposits[56](index=56&type=chunk)[60](index=60&type=chunk) [Other Income](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) The Group's other income, including bank deposit interest, management fees, and miscellaneous items, slightly decreased in total for the period Other Income Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 3,899 | 5,702 | | Management Fee Income | 7,917 | 7,917 | | Others | 2,341 | 2,189 | | **Total** | **14,157** | **15,808** | - Interest income from bank deposits decreased by approximately **31.6%** year-on-year[61](index=61&type=chunk) [Property and Related Costs](index=10&type=section&id=%E7%89%A9%E6%A5%AD%E5%8F%8A%E7%9B%B8%E9%97%9C%E6%88%90%E6%9C%AC) Property and related costs, comprising selling and marketing expenses and direct operating expenses for investment properties, slightly decreased in total for the period Property and Related Costs Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Selling and Marketing Expenses | 260 | 270 | | Direct Operating Expenses for Investment Properties | 1,962 | 1,992 | | **Total** | **2,222** | **2,262** | [Other Gains and Losses](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%90%8D%E7%9B%8A) Other gains and losses for the period shifted from a loss to a gain, primarily due to gains on disposal of financial assets measured at fair value through profit or loss, offsetting exchange losses Other Gains and Losses Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Exchange (Loss) Gain | (9,979) | 791 | | Gain on Disposal of Financial Assets Measured at Fair Value Through Profit or Loss | 11,822 | – | | Gain (Loss) on Disposal/Derecognition of Debt Instruments Measured at Fair Value Through Other Comprehensive Income | 1,059 | (1,908) | | **Total** | **2,902** | **(1,117)** | - A net exchange loss of **HKD 9,979 thousands** was recorded for the period, compared to a gain of **HKD 791 thousands** in the prior period[63](index=63&type=chunk) - Gains of **HKD 11,822 thousands** were generated from the disposal of financial assets measured at fair value through profit or loss, with no such gains in the prior period[63](index=63&type=chunk) [Finance Costs](index=11&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) The Group's finance costs, mainly from bank borrowing interest and upfront fee amortization, significantly decreased year-on-year in the current period Finance Costs Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on Bank Borrowings | 135,768 | 171,753 | | Amortization of Upfront Fees for Bank Borrowings | 8,035 | 8,520 | | Interest on Lease Liabilities | 2,601 | 2,666 | | Other Fees | 4,164 | 4,385 | | **Total** | **150,568** | **187,324** | - Interest on bank borrowings decreased by approximately **20.9%** year-on-year, being the primary reason for the decline in total finance costs[69](index=69&type=chunk) [Income Tax Expense](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The Group incurred no income tax expense in the current period, compared to a small tax expense in the prior period Income Tax Expense Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Year Tax | – | 18 | | Deferred Tax | – | 501 | | **Total** | **–** | **519** | [Dividends](index=11&type=section&id=%E8%82%A1%E6%81%AF) The Board declared an interim dividend of HK 2 cents per share, consistent with the prior period, and confirmed the payment of last year's final dividend Dividend Distribution Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Final Dividend for the Year Ended December 31, 2024 (HK 3 cents per share) | 18,064 | 18,064 | | Interim Dividend Declared (HK 2 cents per share) | 12,042 | 12,042 | - The interim dividend will be dispatched on or before October 14, 2025, to shareholders whose names appear on the register of members on September 26, 2025[71](index=71&type=chunk) [Loss Per Share](index=12&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) Basic loss per share for the period was HK 26.5 cents, an increase from the prior period, with diluted loss per share being identical due to the Group's overall loss Loss Per Share Summary (HK cents) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (26.5) | (12.0) | - The weighted average number of ordinary shares used to calculate basic and diluted loss per share was **602,122,726** shares, remaining unchanged for both periods[78](index=78&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=12&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) The Group's total trade and other receivables, deposits, and prepayments decreased, mainly due to reduced prepaid upfront fees, with trade receivables having a 0 to 30-day credit period Trade and Other Receivables, Deposits and Prepayments Summary (HKD thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Trade Receivables | 2,864 | 3,303 | | Prepaid Upfront Fees | – | 6,484 | | Deposits, Prepayments and Other Receivables | 25,545 | 29,286 | | **Total** | **28,409** | **39,073** | Ageing Analysis of Trade Receivables (HKD thousands) | Ageing | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | 0 to 30 Days | 2,653 | 3,188 | | 31 to 60 Days | 140 | 115 | | 61 to 90 Days | 71 | – | | **Total** | **2,864** | **3,303** | [Assets Classified as Held for Sale](index=13&type=section&id=%E5%88%86%E9%A1%9E%E7%82%BA%E6%8C%81%E4%BD%9C%E5%87%BA%E5%94%AE%E4%B9%8B%E8%B3%87%E7%94%A2) The Group entered into an agreement to sell an investment property in Hong Kong, which has been classified as an asset held for sale - On April 25, 2025, the Group entered into a formal agreement to sell an investment property in Hong Kong to an independent third party for a consideration of approximately **HKD 160,000 thousands**[87](index=87&type=chunk)[119](index=119&type=chunk) Assets Classified as Held for Sale (HKD thousands) | Item | 2025年6月30日 | | :--- | :--- | | Investment Properties | 128,000 | | **Assets Classified as Held for Sale** | **128,000** | [Payables, Rental Deposits and Accrued Expenses](index=14&type=section&id=%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E7%A7%9F%E9%87%91%E6%8C%89%E9%87%91%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) The Group's total payables, rental deposits, and accrued expenses decreased, with changes in both trade payables and interest payables Payables, Rental Deposits and Accrued Expenses Summary (HKD thousands) | Item | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Trade Payables | 717 | 1,280 | | Rental Deposits | 7,905 | 8,944 | | Rental Received in Advance | 48,459 | 43,889 | | Other Payables, Other Deposits and Accrued Expenses | 61,404 | 85,755 | | Interest Payables | 15,412 | 12,444 | | **Total** | **133,897** | **152,312** | - The average credit period for trade payables is **60 days**[95](index=95&type=chunk) Management Discussion and Analysis [Financial Summary](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81_MDA) The Group's revenue slightly increased, and operating profit before fair value changes of investment properties rose, but loss attributable to shareholders expanded due to fair value losses and finance costs, though finance costs decreased and fair value losses were non-cash H1 2025 Financial Performance (HKD millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 204.3 | 203.5 | | Operating Profit Before Fair Value Changes of Investment Properties | 103.7 | 96.9 | | Loss Attributable to Company Shareholders | (159.4) | (72.0) | | Finance Costs | 150.6 | 187.3 | | Equity Attributable to Company Shareholders (Period-end) | 3,886.2 | 3,923.5 | | Net Asset Value Per Share Attributable to Company Shareholders (Period-end) | HKD 6.5 | HKD 6.5 | - Rental income from investment properties contributed approximately **HKD 108.3 millions** to revenue, an increase of **7.3%** compared to 2024[103](index=103&type=chunk) - After adjusting for the market value of hotel properties, the adjusted net asset value per share attributable to company shareholders was **HKD 13.4**[110](index=110&type=chunk) [Business Review](index=16&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's business focuses on property investment and development in Hong Kong and the UK, with hotel operations facing challenges and financial investments prudently managed - The Group's strategy is to periodically review and optimize its project portfolio, with current core projects including 1 Shouson Hill Road East, Jardine's Lookout Inland Lot No. 7384, parts of Warwick House, the joint venture residential project 'The Victoria Skye' and Repulse Bay South Bay Road project in Hong Kong, as well as 20 Moorgate and 33 Old Broad Street in London, UK[111](index=111&type=chunk) [Property Investment and Development](index=16&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87%E5%8F%8A%E7%99%BC%E5%B1%95) The Group continuously optimizes its property portfolio, with core projects including residential and commercial properties in Hong Kong and two investment properties in London, UK [Hong Kong](index=16&type=section&id=%E9%A6%99%E6%B8%AF) Hong Kong property projects are progressing well, with 'The Victoria Skye' completed and largely sold, Warwick House rental income increasing, a detached house sold at Shouson Hill Road East, and other luxury residential projects proceeding as planned - The 'The Victoria Skye' project has sold over **1,370 units**, generating total sales proceeds exceeding **HKD 23,200 millions**, with the Group receiving approximately **HKD 152 millions** in cash during the period[112](index=112&type=chunk) - Warwick House rental income slightly increased, with occupancy rising by **9%**[119](index=119&type=chunk) - The Group entered into an agreement to sell a detached house at Shouson Hill Road East for approximately **HKD 160 millions**, with completion expected on or before October 8, 2025[119](index=119&type=chunk) [United Kingdom](index=17&type=section&id=%E8%8B%B1%E5%9C%8B) The Group's two London investment properties, 20 Moorgate and 33 Old Broad Street, provide stable cash flow through long-term leases and reputable tenants - Almost the entire property at 20 Moorgate has been long-term leased by the UK Prudential Regulation Authority as its headquarters[120](index=120&type=chunk) - 33 Old Broad Street is fully leased to the Bank of Scotland, with rents fixed to increase every five years, having already increased by **13%** last year[120](index=120&type=chunk) [Hotel Operations](index=17&type=section&id=%E9%85%92%E5%BA%97%E7%87%9F%E9%81%8B) Crowne Plaza Hong Kong Causeway Bay's performance moderately declined due to decreased occupancy and average room rates, with the Group enhancing service quality to address challenges - The hotel's performance decline was mainly due to decreased occupancy and average room rates, leading to a reduction in overall revenue[121](index=121&type=chunk) - The Group will continue to enhance hotel service quality to address challenges and capitalize on opportunities[128](index=128&type=chunk) [Financial Investments](index=18&type=section&id=%E9%87%91%E8%9E%8D%E6%8A%95%E8%B3%87) The Group prudently manages capital, optimizing its structure and reducing gearing, with financial investment portfolio value slightly decreasing but no debt securities impairment losses Financial Investment Portfolio Value (HKD thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Total Financial Investments | 237,700 | 246,200 | - No impairment losses were recorded on debt securities in both the current and prior periods[129](index=129&type=chunk) [Financial Resources and Liquidity](index=18&type=section&id=%E8%B2%A1%E6%94%BF%E8%B3%87%E6%BA%90%E5%8F%8A%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91) The Group maintains high financial flexibility and liquidity through prudent financial policy, with stable available funds, a slight increase in net debt, and a small rise in the asset-to-liability ratio [Financial Policy](index=18&type=section&id=%E7%90%86%E8%B2%A1%E6%94%BF%E7%AD%96) The Group adheres to a prudent financial policy with non-recourse project borrowings, maintaining high financial flexibility and liquidity, and anticipates no significant refinancing needs until 2026 - All project borrowings are on a non-recourse basis, with no cross-default covenants at the company level[130](index=130&type=chunk) - The Group anticipates no significant refinancing needs until **2026**[130](index=130&type=chunk) [Working Capital and Loan Financing](index=18&type=section&id=%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%B8%E6%AC%BE%E8%9E%8D%E8%B3%87) The Group's total available funds are stable, but cash and cash equivalents decreased, while total bank borrowings declined, net debt and the asset-to-liability ratio slightly increased, and a **HKD 1 billion** committed revolving syndicated loan provides ample liquidity Working Capital and Loan Financing Summary (HKD thousands) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Total Available Funds | 5,684,200 | 5,642,100 | | Total Bank Balances and Cash | 2,287,700 | 2,645,600 | | Undrawn Facilities | 3,396,500 | 2,996,500 | | Total Bank Borrowings | 6,635,200 | 6,842,100 | | Net Debt | 4,109,800 | 3,950,300 | | Asset-to-Liability Ratio | 33.0% | 31.4% | - The Group has a **HKD 1,000,000 thousands** committed revolving syndicated loan facility provided by seven financial institutions, with no drawings currently made[131](index=131&type=chunk) Outstanding Borrowings Maturity (HKD millions) | Maturity | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Within One Year | 1,426.9 | 1,257.1 | | One to Two Years | 1,588.2 | 1,599.8 | | Three to Five Years | 3,663.9 | 3,529.6 | | Over Five Years | – | 500.2 | | **Total** | **6,679.0** | **6,886.7** | [Pledge of Assets](index=19&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) The Group's bank borrowings in Hong Kong and the UK are secured by assets, with Hong Kong's borrowings collateralized by properties and cash, and UK borrowings by investment properties and cash - Hong Kong subsidiaries' secured bank borrowings of **HKD 2,703,300 thousands** are collateralized by properties with a carrying value of **HKD 3,425,200 thousands** and cash of **HKD 31,000 thousands**[140](index=140&type=chunk) - UK subsidiaries have pledged investment properties with a total carrying value of **HKD 4,010,700 thousands** and cash of **HKD 121,900 thousands** to secure bank borrowings of **HKD 2,717,200 thousands**[141](index=141&type=chunk) [Employee Information](index=20&type=section&id=%E5%83%B1%E5%93%A1%E8%B3%87%E6%96%99) The Group's total number of employees in Hong Kong slightly decreased, but it maintains good working relationships and offers competitive remuneration, benefits, and training to retain and motivate talent Employee Data Summary | Metric | 2025年6月30日 | 2024 | | :--- | :--- | :--- | | Total Hong Kong Employees | 180 | 190 | | Employee Costs (HKD thousands) | 48,900 | 48,700 | - The Group provides benefits such as medical insurance, further education and training allowances, examination leave, and pension schemes, along with share option and share award schemes to incentivize management and high-performing individuals[147](index=147&type=chunk) [Outlook](index=20&type=section&id=%E5%B1%95%E6%9C%9B) The global economic outlook is challenging due to geopolitical tensions and trade uncertainties, with global growth expected to slow, while China's economy slows, Hong Kong's property market faces challenges but rental market improves, and the UK economy recovers with lower interest rates, as the Group prudently manages its balance sheet - The International Monetary Fund forecasts global economic growth to slow from an estimated **3.3%** in 2024 to **2.8%** in 2025 and **3.0%** in 2026[148](index=148&type=chunk) - China's economy grew by **5.2%** in Q2 2025, with the government stimulating the economy through interest rate cuts, reserve requirement ratio reductions, and increased domestic investment[148](index=148&type=chunk) - Hong Kong's property market is experiencing a slow recovery in property prices, but the residential rental market shows signs of improvement due to an influx of professionals and non-local students[149](index=149&type=chunk) - The UK economy grew by **0.7%** in Q1 2025, with the central bank having lowered interest rates to **4.25%** and further reductions anticipated[155](index=155&type=chunk) Other Information [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%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 for the six months ended June 30, 2025 - The Company and its subsidiaries did not engage in any purchase, sale, or redemption activities of listed securities during the period[157](index=157&type=chunk) [Corporate Governance Practices](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Company has applied the principles and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the interim period - The Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[158](index=158&type=chunk) [Review of Interim Financial Statements](index=21&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by the Company's Audit Committee and Deloitte Touche Tohmatsu - The interim financial statements have been reviewed by the Company's Audit Committee and Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410[159](index=159&type=chunk) [Publication of Interim Report](index=22&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The Company's 2025 interim report will be dispatched to shareholders in September 2025 and published on the HKEX and Company websites - The interim report will be dispatched to shareholders in **September 2025** and published on the Hong Kong Exchange and the Company's website[165](index=165&type=chunk) [Board of Directors](index=22&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Company's Board of Directors comprises executive directors, including the Chairman, President, and CFO, and independent non-executive directors - Executive Directors include Mr. Lui Wing Cheong (Chairman), Mr. Lui Luen Park (President), and Mr. Yip Sze Lim (Chief Financial Officer)[165](index=165&type=chunk) - Independent Non-executive Directors include Mr. Ngan Yi Fo, Mr. Chan Kwok Wai, Mr. Law Wai Tung, and Ms. Chan Pui Kwan[165](index=165&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) This section provides a high-level overview of the group's financial performance, highlighting key revenue and loss figures Financial Summary for the Six Months Ended June 30, 2025 | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Percentage Change (%) | | :--- | :--- | :--- | :--- | | Interest and Financing Advisory Services Income | 39,595 | 51,297 | (22.8) | | Loss for the Period Attributable to Owners of the Company | (29,599) | (18,323) | 61.5 | | Basic Loss Per Share (HKD) | (0.15) | (0.09) | 66.7 | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's condensed consolidated financial statements, including profit or loss, comprehensive income, and financial position [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The group's interest and financing advisory services income decreased by 22.8% year-on-year, leading to a 61.5% increase in loss attributable to owners of the company Condensed Consolidated Statement of Profit or Loss Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest and Financing Advisory Services Income | 39,595 | 51,297 | | Interest and Fees | (23,907) | (21,564) | | Net Interest and Service Income | 15,688 | 29,733 | | Loss Before Tax | (26,269) | (13,919) | | Loss for the Period | (28,565) | (17,915) | | Loss for the Period Attributable to Owners of the Company | (29,599) | (18,323) | [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) The group's total comprehensive expense for the six months ended June 30, 2025, decreased to HKD 13,577 thousand, primarily due to a favorable shift in exchange differences on overseas operations Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Loss for the Period | (28,565) | (17,915) | | Exchange Differences on Translation of Overseas Operations | 14,988 | (4,052) | | Total Comprehensive Expense for the Period | (13,577) | (21,967) | | Attributable to Owners of the Company | (15,786) | (21,821) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's total assets slightly decreased, but a reduction in current liabilities led to an increase in net current assets, while total equity slightly declined Condensed Consolidated Statement of Financial Position Key Data | Indicator | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 409,113 | 444,088 | | Current Assets | 1,264,455 | 1,294,508 | | Current Liabilities | 937,859 | 985,685 | | Net Current Assets | 326,596 | 308,823 | | Net Assets | 718,347 | 733,660 | | Total Equity Attributable to Owners of the Company | 641,452 | 657,238 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the accounting policies, changes, and specific financial statement items, providing context for the group's financial reporting [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) This interim financial information is prepared in accordance with HKAS 34 and the Listing Rules, using a historical cost basis, and should be read in conjunction with the 2024 annual consolidated financial statements - Interim financial information is 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 provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - Interim financial information is prepared on a historical cost basis, except for certain financial instruments and investment properties measured at fair value at the end of each reporting period[9](index=9&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=Changes%20in%20Accounting%20Policies) Revisions to Hong Kong Financial Reporting Standards applied for the first time in this interim period had no significant impact on the group's financial position or performance - Revisions to Hong Kong Financial Reporting Standards accounting standards applied during this interim period had no significant impact on the group's financial position and performance and/or disclosures in this interim financial information for the current and prior periods[12](index=12&type=chunk) [Revenue and Segment Reporting](index=8&type=section&id=Revenue%20and%20Segment%20Reporting) The group's revenue primarily derives from interest and financing advisory services for pawn loans, micro-loans, and lending, with total revenue decreasing by 22.8% year-on-year, and operates as a single reportable segment Interest and Financing Advisory Services Income Composition | Revenue Source | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Loans Receivable from Pawn Loans, Micro-loans, and Lending | 39,534 | 51,110 | | Other Loans Receivable | 61 | 187 | | **Total** | **39,595** | **51,297** | - The Directors of the Company have determined that the group has only one reportable segment for both periods, primarily engaged in providing financing services[14](index=14&type=chunk) [Other Income and Other Gains and Losses](index=9&type=section&id=Other%20Income%20and%20Other%20Gains%20and%20Losses) Other income mainly comprises bank interest and miscellaneous items, while other gains and losses are influenced by fair value changes of financial assets and net exchange losses, resulting in a total loss of HKD 1,579 thousand Other Income and Other Gains and Losses Composition | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Bank Interest Income | 656 | 1,519 | | Other Income | 859 | 399 | | Net Gain/(Loss) from Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 2,174 | (143) | | Loss on Disposal of Repossessed Assets | (800) | – | | Loss from Fair Value Changes of Investment Properties | (202) | (200) | | Net Exchange Loss | (4,266) | (1,898) | | **Total** | **(1,579)** | **(662)** | [Loss Before Tax](index=10&type=section&id=Loss%20Before%20Tax) The group's loss before tax is primarily impacted by staff costs and depreciation of property, plant, and equipment, with staff costs totaling HKD 17,550 thousand during the reporting period Key Deductions for Loss Before Tax | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Staff Costs | 17,550 | 20,788 | | Depreciation of Property, Plant and Equipment - Owned Assets | 660 | 758 | | Depreciation of Property, Plant and Equipment - Right-of-use Assets | 2,292 | 2,563 | [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) Income tax expense for the reporting period was HKD 2,296 thousand, primarily comprising PRC enterprise income tax, dividend withholding tax, and deferred tax, showing a decrease from the prior year Income Tax Expense Composition | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Current Tax - PRC Enterprise Income Tax | 2,066 | 4,258 | | Underprovision/(Overprovision) in Prior Periods | 65 | (1,309) | | Dividend Withholding Tax | 770 | 2,491 | | Deferred Tax | (605) | (1,444) | | **Total** | **2,296** | **3,996** | [Loss Per Share](index=11&type=section&id=Loss%20Per%20Share) Basic loss per share for the six months ended June 30, 2025, increased to HKD 0.15, reflecting a higher loss attributable to owners of the company, with diluted loss per share being the same as basic loss per share - Basic loss per share is calculated based on the loss attributable to owners of the Company of **HKD 29,599,000** (six months ended June 30, 2024: HKD 18,323,000) and the weighted average number of ordinary shares in issue, net of shares held under the Company's share award scheme, of **203,529,367 shares**[21](index=21&type=chunk) - Diluted loss per share is the same as basic loss per share because the exercise price of share options is higher than the average market price of the shares[21](index=21&type=chunk) [Interim Dividend](index=11&type=section&id=Interim%20Dividend) The Board of Directors has decided not to declare any interim dividend for the current reporting period - No dividends were paid, declared, or proposed for either period, and the Directors have decided not to pay a dividend for the current period[22](index=22&type=chunk) [Loans Receivable](index=12&type=section&id=Loans%20Receivable) As of June 30, 2025, the group's total loans receivable decreased to HKD 945,427 thousand, with overdue amounts of 90 days or more increasing to HKD 536,607 thousand and credit impairment provisions of HKD 6,167 thousand Loans Receivable Composition and Changes | Item | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Pawn Loan Receivables | 154,131 | 207,917 | | Micro-loan Receivables | 597,190 | 626,076 | | Lending Receivables | 180,293 | 149,455 | | Event-related Loans Receivable | 963,482 | 948,822 | | Other Loans Receivable | 210,572 | 208,605 | | Less: Impairment | (1,160,241) | (1,142,804) | | **Total** | **945,427** | **998,071** | - As of June 30, 2025, the group's loans receivable balance included overdue debts with a gross carrying amount (net of expected credit losses) of **HKD 552,081,000** (December 31, 2024: HKD 558,567,000)[23](index=23&type=chunk) - Among the overdue balances, amounts overdue for **90 days or more** totaled **HKD 536,607,000** (December 31, 2024: HKD 514,468,000)[23](index=23&type=chunk) [Interest Receivable](index=14&type=section&id=Interest%20Receivable) As of June 30, 2025, total interest receivable decreased to HKD 3,540 thousand, with amounts overdue for 90 days or more at HKD 2,002 thousand and an impairment provision of HKD 247 thousand recognized Interest Receivable Ageing Analysis | Ageing | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 1 month | 1,268 | 2,368 | | 1 to 3 months | 318 | 578 | | 3 to 6 months | 294 | 288 | | Over 6 months | 1,660 | 2,336 | | **Total** | **3,540** | **5,570** | - As of June 30, 2025, the group's interest receivable balance included overdue debts with a gross carrying amount (net of expected credit losses) of **HKD 2,480,000** (December 31, 2024: HKD 3,826,000)[29](index=29&type=chunk) - Among the overdue balances, amounts overdue for **90 days or more** totaled **HKD 2,002,000** (December 31, 2024: HKD 2,693,000)[29](index=29&type=chunk) [Repossessed Assets](index=15&type=section&id=Repossessed%20Assets) During the reporting period, the group sold repossessed assets with a carrying value of HKD 7,601 thousand, recognizing a loss of HKD 800 thousand, while the estimated market value of remaining repossessed assets decreased to HKD 27,500 thousand, leading to an impairment loss of HKD 3,088 thousand - During the six months ended June 30, 2025, certain repossessed assets with a carrying value of **HKD 7,601,000** were sold, and a loss on disposal of repossessed assets of **HKD 800,000** was recognized[31](index=31&type=chunk) - The estimated market value of repossessed assets as of June 30, 2025, was **HKD 27,500,000** (December 31, 2024: HKD 42,200,000)[31](index=31&type=chunk) - An impairment loss of **HKD 3,088,000** was recognized during the six months ended June 30, 2025[31](index=31&type=chunk) [Borrowings and Loans Payable](index=15&type=section&id=Borrowings%20and%20Loans%20Payable) As of June 30, 2025, total borrowings and loans payable decreased to HKD 614,082 thousand, all due within one year, with event-related loans payable still a significant component, partially offset by interest reversals from settlements Borrowings and Loans Payable Composition | Source | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Borrowings from Independent Third Parties | 55,357 | 52,469 | | Borrowings from Shareholders | 119,860 | 79,672 | | Borrowings from Related Parties | 24,442 | 24,447 | | Loans Payable Arising from the Event | 414,423 | 505,151 | | **Total** | **614,082** | **661,739** | - During the six months ended June 30, 2025, the group successfully reached final agreements and settlements with certain investors/lenders regarding unauthorized loans related to the "event" with the assistance of Zhongjin Jiasheng, resulting in a reversal of related interest of **HKD 1,907,000** to profit or loss[34](index=34&type=chunk) - Unauthorized loans and related interest for which no settlement was reached amounted to **HKD 109,391,000** and **HKD 42,876,000**, respectively[34](index=34&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the industry, business performance, and future outlook, offering management's perspective on the group's operations and strategic direction [Industry Review](index=17&type=section&id=Industry%20Review) In the first half of 2025, the economies of mainland China and Hong Kong experienced a moderate recovery, but the real estate market remained under pressure, impacting mortgage demand, while the micro-loan sector saw stable but slightly declining growth amid stricter regulation - In the first half of 2025, mainland China's economy maintained a moderate recovery, with GDP growing by **5.3% year-on-year**, largely driven by the service sector[36](index=36&type=chunk) - The real estate industry in mainland China generally remained under pressure, with real estate investment continuing to decline year-on-year, and the Hong Kong residential market maintaining caution[37](index=37&type=chunk) - The micro-loan industry experienced a slight contraction on a generally stable base, showing a trend of stable but slight decline amidst stricter policy regulation and weaker market demand[37](index=37&type=chunk) [Business Review](index=18&type=section&id=Business%20Review) In the first half of 2025, the group's new loans totaled approximately HKD 312,859 thousand, with total loan balances reaching HKD 945,427 thousand, demonstrating a balanced business distribution and growth across regions, with Beijing having a higher proportion and Hong Kong showing faster growth - In the first half of 2025, the group's new loans in Beijing, Chengdu, Shenzhen, and Hong Kong totaled approximately **HKD 312,859,000**[39](index=39&type=chunk) - As of the end of June 2025, the group's total loan balances in these regions reached approximately **HKD 945,427,000**[39](index=39&type=chunk) - Business in the Beijing region accounted for a slightly higher proportion than the other three regions, while the Hong Kong region experienced relatively faster growth[39](index=39&type=chunk) [Future Outlook](index=18&type=section&id=Future%20Outlook) Facing a complex economic environment, the group will prioritize digital transformation and strategic partnerships, strengthen its market position, and maintain strict risk control to achieve sustainable long-term growth - The group will prioritize advancing **digital transformation** and **strategic cooperation**, strengthening its market positioning, while maintaining strict risk control to address economic uncertainties and achieve sustainable long-term growth[41](index=41&type=chunk) - The central government of mainland China plans to implement targeted measures to mitigate real estate industry risks and promote sustainable development[40](index=40&type=chunk) - The continuous development of the Guangdong-Hong Kong-Macao Greater Bay Area brings significant economic integration and growth opportunities for Hong Kong[40](index=40&type=chunk) [Business Model](index=19&type=section&id=Business%20Model) This section outlines the group's operational processes, from background checks and credit assessment to post-loan services and collection, along with an overview of its loan portfolio [Background Checks](index=19&type=section&id=Background%20Checks) Loan applicants are required to provide identity documents, company records, financial statements, collateral information, and credit rating reports for review and assessment - Loan applicants are required to provide various identity documents for review and assessment, including personal ID cards, company constitutional documents, business registration, address proof, salary or financial records, nature of business, type and value of collateral, and credit rating reports[42](index=42&type=chunk) [Credit Assessment and Loan Approval](index=20&type=section&id=Credit%20Assessment%20and%20Loan%20Approval) The credit committee assesses client background, financial capacity, creditworthiness, repayment ability, and collateral quality, with loans exceeding regional limits requiring approval from the Loan Approval Committee or Business Risk Committee, considering company and shareholder interests - Client background and financial capacity, creditworthiness, repayment ability, presence of guarantors, quality, validity, title deeds, and liquidity of collateral are assessed by the credit committee in each operating region[43](index=43&type=chunk) - If the applied loan amount exceeds the regional credit committee's approval limit but not RMB 30,000,000, the loan application will be assessed by the group's Loan Approval Committee; if any loan principal exceeds RMB 30,000,000, approval from the Business Risk Committee is required[43](index=43&type=chunk) [Documentation Execution](index=21&type=section&id=Documentation%20Execution) Compliance procedures are established to adhere to AML, KYC, and lending regulations, with all loan applications requiring approval, documents executed under supervision, and funds disbursed by the finance department - Compliance procedures have been established to ensure adherence to all relevant laws and regulations, such as Anti-Money Laundering (AML), Know Your Customer (KYC) requirements, and any applicable lending regulations[44](index=44&type=chunk) - All loan applications must be approved by the relevant approval committee; loan documents, contracts, and agreements will be duly executed under the supervision of responsible personnel who clearly communicate loan terms to borrowers, and the finance department will be responsible for arranging fund disbursement[44](index=44&type=chunk) [Post-Loan Services](index=21&type=section&id=Post-Loan%20Services) The group continuously monitors borrower repayment status, regularly communicates financial conditions, and periodically reviews the market value of pledged collateral - The group will continuously monitor borrowers' repayment status throughout the loan repayment period, regularly communicate with borrowers regarding their latest financial conditions, and periodically review the market value of pledged collateral[44](index=44&type=chunk) [Collection and Recovery](index=21&type=section&id=Collection%20and%20Recovery) Demand notices and statutory demand letters are issued to borrowers with overdue payments, and legal action may be initiated to recover receivables and repossess collateral if necessary - Formal demand notices and statutory demand letters are issued to borrowers with overdue payments, and legal action may be initiated against borrowers to recover receivables and repossess pledged collateral[44](index=44&type=chunk) [Loan Portfolio Overview](index=22&type=section&id=Loan%20Portfolio%20Overview) The group offers both secured and unsecured loans, with property mortgage loans constituting approximately 81.6% of the loan portfolio, serving 1,269 active customers as of June 30, 2025, where the top five clients account for 24.20% of the total outstanding loan balance - As of June 30, 2025, the gross carrying amount (net of expected credit losses) of **property mortgage loans** accounted for approximately **81.6%** of the group's entire loan portfolio[45](index=45&type=chunk) - For the year ended June 30, 2025, the group had **1,269 active customers**, comprising 1,228 individual customers and 41 corporate customers; 523 secured customers and 746 unsecured customers[45](index=45&type=chunk) - As of June 30, 2025, the **top five customers** accounted for **24.20%** of the group's total outstanding loan portfolio balance[46](index=46&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) This section provides a detailed analysis of the group's financial performance, including revenue, expenses, and key financial indicators for the reporting period [Interest and Financing Advisory Services Income](index=22&type=section&id=Interest%20and%20Financing%20Advisory%20Services%20Income) During the reporting period, interest and financing advisory services income decreased by 22.8% to HKD 39,595 thousand, primarily due to economic uncertainty, stricter credit controls, and increased cash allocation to debt repayment over new loan issuance - During the reporting period, interest and financing advisory services income was approximately **HKD 39,595,000**, a decrease of approximately **22.8%** compared to approximately HKD 51,297,000 in the same period last year[47](index=47&type=chunk) - This decrease was primarily due to (i) reduced income resulting from an uncertain economic environment; (ii) the group conducting its lending business under stricter credit controls; and (iii) using more cash to repay borrowings and loans payable rather than issuing new loans in mainland China and Hong Kong[47](index=47&type=chunk) Revenue Contribution Percentage by Operating Region | Region | Six Months Ended June 30, 2025 (%) | Six Months Ended June 30, 2024 (%) | | :--- | :--- | :--- | | Beijing | 25.2 | 31.6 | | Chengdu and Chongqing | 35.4 | 26.1 | | Shenzhen | 10.8 | 12.1 | | Hong Kong | 28.6 | 30.2 | [Interest and Fees](index=23&type=section&id=Interest%20and%20Fees) During the reporting period, interest and fees (financing costs) increased by 10.9% to HKD 23,907 thousand - Interest and fees increased by approximately **10.9%** from approximately HKD 21,564,000 in the same period of 2024 to approximately **HKD 23,907,000** in the reporting period[49](index=49&type=chunk) [Other Income and Other Gains and Losses](index=23&type=section&id=Other%20Income%20and%20Other%20Gains%20and%20Losses) Other income primarily includes bank interest and miscellaneous items, while other gains and losses are mainly affected by fair value changes of financial assets at fair value through profit or loss and net exchange losses - Other income primarily includes bank interest income of approximately **HKD 656,000** and other income of approximately **HKD 859,000**[50](index=50&type=chunk) - Other gains and losses primarily include a net gain from fair value changes of financial assets at fair value through profit or loss of approximately **HKD 2,174,000** and a net exchange loss of approximately **HKD 4,266,000** recognized during the reporting period[50](index=50&type=chunk) [Reversal of Loans and Interest Payable](index=23&type=section&id=Reversal%20of%20Loans%20and%20Interest%20Payable) During the reporting period, the group successfully settled unauthorized loans related to the "event" with investors/lenders, resulting in a one-off other income of approximately HKD 1,907 thousand from the reversal of interest payable - During the reporting period, a one-off other income of approximately **HKD 1,907,000** from the reversal of interest payable was recognized[51](index=51&type=chunk) - The group, with the assistance of Zhongjin Jiasheng Investment Fund Management (Beijing) Co., Ltd., successfully reached final agreements and settlements with certain investors/lenders regarding unauthorized loans related to the event, and consequently, the related interest payable was reversed to profit or loss during the reporting period[51](index=51&type=chunk) [General and Administrative Expenses](index=24&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by 17.3% to HKD 34,880 thousand during the reporting period, mainly due to management's continuous implementation of strict cost control measures - General and administrative expenses for the reporting period decreased by **17.3%** to approximately **HKD 34,880,000**, primarily comprising staff costs and related expenses, legal and professional fees, consulting fees, depreciation of property, plant and equipment, and general office expenses[52](index=52&type=chunk) [Loss for the Period](index=24&type=section&id=Loss%20for%20the%20Period) The loss for the period attributable to owners of the company was approximately HKD 29,599 thousand, an increase of approximately 61.5% compared to the loss of HKD 18,323 thousand in the first half of 2024 - The loss for the period attributable to owners of the company was approximately **HKD 29,599,000**, an increase of approximately **61.5%** compared to a loss of approximately HKD 18,323,000 in the first half of 2024[53](index=53&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) As of the end of the reporting period, the group maintained prudent cash and financial management policies, with net current assets of approximately HKD 326,596 thousand and equity attributable to owners of the company of approximately HKD 641,452 thousand, while outstanding borrowings and unsecured bonds decreased by 7.1% to HKD 624,081 thousand, all due within one year - As of the end of the reporting period, the group's net current assets and equity attributable to owners of the company were approximately **HKD 326,596,000** and approximately **HKD 641,452,000**, respectively[54](index=54&type=chunk) - As of the end of the reporting period, the group's outstanding borrowings and loans payable and unsecured bonds were approximately **HKD 624,081,000**, a decrease of approximately **7.1%** compared to the outstanding borrowings and loans payable and unsecured bonds as of December 31, 2024, all due within one year[54](index=54&type=chunk) [Capital Management](index=25&type=section&id=Capital%20Management) The group's primary objective is to ensure continuous operation, provide returns to shareholders through appropriately priced products and services, and secure financing at reasonable costs, with future operations and capital needs primarily funded by borrowings and equity - The group's primary objective in managing capital is to ensure its ability to continue as a going concern, provide returns to shareholders, and benefit other stakeholders by pricing products and services commensurate with risk levels and obtaining financing at reasonable costs[55](index=55&type=chunk) - Based on the group's current and projected operating levels, its future operations and capital requirements will primarily be funded through borrowings and equity[55](index=55&type=chunk) Key Financial Ratios | Ratio | As of June 30, 2025 | | :--- | :--- | | Current Ratio | 1.35 | | Gearing Ratio | 0.48 | [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the group employed approximately 122 staff in China and Hong Kong, with total staff costs for the reporting period decreasing by 15.6% to approximately HKD 17,550 thousand - As of June 30, 2025, the group employed approximately **122 staff** in China and Hong Kong, including 66 female employees[58](index=58&type=chunk) - Total staff costs for the reporting period were approximately **HKD 17,550,000**, a decrease of approximately **15.6%** compared to the previous year's figure[58](index=58&type=chunk) [Pledged Assets and Fair Value Estimation](index=26&type=section&id=Pledged%20Assets%20and%20Fair%20Value%20Estimation) As of June 30, 2025, the group pledged customer properties, secured loans receivable, and repossessed assets with carrying values of approximately HKD 19,150 thousand, HKD 20,050 thousand, and HKD 11,700 thousand respectively, to secure loan financing, while the carrying amounts of financial assets and liabilities are assumed to approximate their fair values - As of June 30, 2025, certain customer properties pledged to two of the company's subsidiaries with a carrying value of approximately **HKD 19,150,000** were pledged to secure loan financing granted to the group[59](index=59&type=chunk) - As of June 30, 2025, the group had pledged its secured loans receivable with a net carrying value of approximately **HKD 20,050,000** and its repossessed assets of approximately **HKD 11,700,000** to secure loan financing granted to the group[59](index=59&type=chunk) - The carrying amounts of financial assets, net of impairment provisions, and financial liabilities are assumed to approximate their fair values[60](index=60&type=chunk) [Capital Commitments and Contingent Liabilities](index=26&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of the end of the reporting period, the group had no significant capital commitments or contingent liabilities - As of the end of the reporting period, the group had no significant capital commitments or contingent liabilities[61](index=61&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) The group is primarily exposed to net exchange rate risk between RMB and HKD, but did not engage in any derivative activities or use financial instruments to hedge exchange rate fluctuations during the reporting period - The group is exposed to foreign currency risk arising from HKD against RMB due to HKD being the presentation currency; as the group's assets are primarily located in China, it is exposed to net exchange rate risk of RMB[62](index=62&type=chunk) - As of June 30, 2025, the group did not engage in any derivative activities and did not use any financial instruments to hedge its statement of financial position exchange rate fluctuation risk[62](index=62&type=chunk) [Material Investments Held, Material Acquisitions and Disposals](index=27&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals) As of the end of the reporting period, the group held no material investments representing 5% or more of total assets, nor were there any material acquisitions or disposals of subsidiaries, associates, and joint ventures during the period - As of the end of the reporting period, the group held no material investments representing **5% or more** of its total assets, and there were no material acquisitions or disposals of subsidiaries, associates, and joint ventures during the reporting period[63](index=63&type=chunk) [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the company implemented a capital reduction to offset accumulated losses and acquired 75% equity interest in KGH Holdings Limited on July 31, 2025, thereby gaining control - Effective July 15, 2025, the company reduced its share capital account by **HKD 1,334,829,000** from HKD 2,080,113,000 to HKD 745,284,000, with the credit arising from the capital reduction used to offset accumulated losses[67](index=67&type=chunk) - On July 31, 2025, Royal Lion Education Limited, a wholly-owned subsidiary of the company, acquired a **15% equity interest** in KGH Holdings Limited for a consideration of **GBP 853,000**[68](index=68&type=chunk) - Following the acquisition and recovery, the group holds a **75% equity interest** in KGH, thereby gaining control over KGH, which will be accounted for as a subsidiary of the company[68](index=68&type=chunk) [Corporate Governance](index=28&type=section&id=Corporate%20Governance) This section addresses the group's adherence to corporate governance principles, including board structure, code provisions, and director conduct [Code Provision C.2.1](index=28&type=section&id=Code%20Provision%20C.2.1) The company did not comply with Code Provision C.2.1 as Mr. Zhang Min serves as both CEO and Chairman of the Board, though the Board is actively seeking a suitable Chairman and believes the roles are clearly separated - During the reporting period, Mr. Zhang Min, the Chief Executive Officer, also served as the Chairman of the Board; the Board is actively taking steps to identify a suitable Chairman to comply with this code provision[69](index=69&type=chunk) - The Board believes that the Chairman's responsibility is to manage the Board, while the Chief Executive Officer's responsibility is to manage the company's business; the respective responsibilities of the Chairman and Chief Executive Officer are clearly defined, thus a written terms of reference is not deemed necessary[69](index=69&type=chunk) [Code Provision C.1.6](index=29&type=section&id=Code%20Provision%20C.1.6) Independent Non-executive Director Mr. Zhang Kun did not attend the Annual General Meeting and Extraordinary General Meeting due to other work commitments, thus not complying with Code Provision C.1.6 - Independent Non-executive Director Mr. Zhang Kun was unable to attend both the Annual General Meeting and the Extraordinary General Meeting, both held on June 3, 2025, due to his other work commitments[70](index=70&type=chunk) [Standard Code for Securities Transactions by Directors](index=29&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a code of conduct for directors' securities transactions no less stringent than Appendix C3 of the Listing Rules, and directors have confirmed compliance during the reporting period, with no non-compliance found in employee guidelines - The company has adopted its own code of conduct for directors' dealings in the company's securities, the terms of which are no less stringent than the Standard Code set out in Appendix C3 of the Listing Rules[71](index=71&type=chunk) - The company has made specific enquiries to all Directors, and the Directors have confirmed that they have complied with the company's code of conduct throughout the reporting period[71](index=71&type=chunk) [Audit Committee and Publication of Interim Results](index=30&type=section&id=Audit%20Committee%20and%20Publication%20of%20Interim%20Results) The Audit Committee has reviewed the interim results for the six months ended June 30, 2025, confirming compliance with relevant financial reporting standards, Listing Rules, and Hong Kong laws, and the independent auditor has reviewed the interim financial information in accordance with HKSRE 2410 - The company's Audit Committee, comprising five independent non-executive directors, has reviewed the interim results for the six months ended June 30, 2025[74](index=74&type=chunk) - The Audit Committee is of the opinion that the unaudited condensed consolidated interim financial information for the reporting period complies with the relevant financial reporting standards, the requirements of the Listing Rules, and Hong Kong laws, and that appropriate disclosures have been made by the company[74](index=74&type=chunk) - The company's independent auditor, BDO Limited, has reviewed the unaudited interim financial information for the reporting period in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[74](index=74&type=chunk) [Board of Directors](index=31&type=section&id=Board%20of%20Directors) As of the date of this announcement, the company's Board of Directors comprises one executive director (also the CEO) and five independent non-executive directors - As of the date of this announcement, the company's Directors include Mr. Zhang Min (Chief Executive Officer) as an executive director, and five independent non-executive directors: Mr. Chan Chun Keung, Mr. Cheung Pak To, Mr. Li Ka Wai, Ms. Zhan Lili, and Mr. Zhang Kun[78](index=78&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：1216） 截至2025年6月30日止六個月之中期業績公告 中原銀行股份有限公司*（「本行」）董事會（「董事會」）欣然宣佈，本行及其附屬公 司截至2025年6月30日止六個月（「報告期」）根據國際財務報告準則編製的未經審 計之合併中期業績（「中期業績」）。董事會及董事會審計委員會已審閱並確認中期 業績。 本業績公告於香港聯合交易所有限公司的網站 www.hkexnews.hk 及本行的網 站 www.zybank.com.cn 發佈。截至2025年6月30日止六個月之中期報告屆時將刊 發並可供在上述網站查閱。 代表董事會 中原銀行股份有限公司* 郭浩 董事長 中華人民共和國，鄭州 2025年8月28日 於本公告日期，董事會包括執行董事郭浩先生；非執行董事馮若凡先生及張姝女 士；獨立非執行董事徐義國先生、趙紫劍女士、王茂斌先生、潘新民先生及高平 陽先 ...

[Overview of Interim Results](index=1&type=section&id=Overview%20of%20Interim%20Results) The group's condensed consolidated financial statements highlight significant improvements in profitability and overall financial health [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group achieved a HK$199,650 thousand profit in H1 2025, a significant turnaround from a prior year loss | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 37,546 | 36,177 | 1,369 | 3.78% | | Gross Profit | 36,325 | 34,974 | 1,351 | 3.86% | | Profit/(Loss) Before Tax | 202,092 | (418,967) | 621,059 | 148.24% | | Profit/(Loss) for the Period | 199,650 | (421,967) | 621,617 | 147.32% | | Basic and Diluted Earnings/(Loss) Per Share Attributable to Owners of the Company | 10.0 HK cents | (21.1) HK cents | 31.1 HK cents | 147.39% | - Profit for the period turned from a **loss of HK$421,967 thousand** in the prior year to a **profit of HK$199,650 thousand** in 2025, primarily due to a significant improvement in the share of results of joint ventures[3](index=3&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group reported HK$771,813 thousand total comprehensive income for H1 2025, reversing a prior year loss | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period | 199,650 | (421,967) | 621,617 | 147.32% | | Exchange differences on translation of foreign operations | 33,071 | (13,274) | 46,345 | 349.14% | | Exchange differences on translation of foreign operations of joint ventures | 606,283 | (357,790) | 964,073 | 269.46% | | Total Comprehensive Income/(Loss) for the Period | 771,813 | (879,529) | 1,651,342 | 187.75% | - In the first half of 2025, the Group's total comprehensive income shifted from a loss to a significant profit, mainly due to substantial positive contributions from **exchange differences on translation of foreign operations** and **exchange differences on translation of foreign operations of joint ventures**[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets increased to HK$10,370,002 thousand as of June 30, 2025, primarily due to interests in joint ventures | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Interests in Joint Ventures | 9,707,387 | 8,926,365 | 781,022 | 8.75% | | Total Non-current Assets | 10,181,595 | 9,361,021 | 820,574 | 8.77% | | Net Current Assets | 138,627 | 133,540 | 5,087 | 3.81% | | Total Assets Less Current Liabilities | 10,320,222 | 9,494,561 | 825,661 | 8.70% | | Total Equity | 9,775,611 | 8,982,144 | 793,467 | 8.83% | - Interests in joint ventures constitute the primary component of the Group's non-current assets, accounting for over **95% of total non-current assets**, and their growth is the main driver for the increase in total assets and equity[5](index=5&type=chunk) [Notes to the Condensed Consolidated Interim Financial Report](index=4&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Report) Detailed notes cover basis of preparation, segment information, revenue, profit before tax, joint venture results, income tax, EPS, and other financial items [1. Basis of Preparation](index=4&type=section&id=1.%20Basis%20of%20Preparation) The interim results are prepared in accordance with HKAS 34 and Listing Rules disclosure requirements, reviewed by the Audit Committee, with no significant financial impact from newly adopted HKAS 21 amendments - These interim results are prepared in accordance with **HKAS 34** and the disclosure requirements of the **Listing Rules**, and have been reviewed by the Audit Committee[6](index=6&type=chunk) - The initial adoption of the revised **HKAS 21 'Lack of Exchangeability'** has no significant financial impact on these interim results[6](index=6&type=chunk) [2. Segment Information](index=4&type=section&id=2.%20Segment%20Information) The Group's operations are categorized into five segments: property investment, property development, financial investment, securities investment, and others, with management assessing performance based on segment results including joint ventures and associates - The Group's operating segments include **property investment**, **property development**, **financial investment**, **securities investment**, and **others**[10](index=10&type=chunk) - Segment performance assessment includes the results of the Company and its subsidiaries, as well as the share of results of associates and joint ventures[7](index=7&type=chunk) [Description of Segment Operations](index=4&type=section&id=Description%20of%20Segment%20Operations) This section outlines the primary activities for each of the Group's operating segments, including property investment, property development, financial investment, and securities investment - The property investment segment includes investments in properties for **rental and resale**[10](index=10&type=chunk) - The property development segment includes the **development and sale of properties**[10](index=10&type=chunk) - The financial investment segment includes investments in the **money market**, while the securities investment segment includes investments in securities held for **trading and long-term strategic purposes**[10](index=10&type=chunk) [Segment Performance Analysis](index=5&type=section&id=Segment%20Performance%20Analysis) This analysis details the revenue and segment results for each business segment, highlighting the significant turnaround in joint venture performance as a key driver for the Group's overall profitability | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2025 Segment Results (HK$ thousand) | 2024 Segment Results (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Property Investment | 34,748 | 34,681 | 19,410 | 16,328 | | Property Development | - | - | (1,743) | (1,954) | | Financial Investment | 2,553 | 1,285 | 2,553 | 1,285 | | Securities Investment | 24 | - | 661 | (80) | | Others | 221 | 211 | (222) | (1,189) | | **Consolidated** | **37,546** | **36,177** | **20,659** | **14,390** | - The share of results of joint ventures significantly improved from a **loss of HK$432,682 thousand** in the prior year to a **profit of HK$189,095 thousand** in 2025, a critical factor in the Group's turnaround to profit before tax[11](index=11&type=chunk) [Segment Assets and Liabilities](index=6&type=section&id=Segment%20Assets%20and%20Liabilities) This section provides a breakdown of segment assets and liabilities, emphasizing the substantial contribution of interests in joint ventures to the Group's total asset base | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Segment Assets | 327,569 | 312,808 | 14,761 | 4.72% | | Interests in Joint Ventures | 9,707,387 | 8,926,365 | 781,022 | 8.75% | | Total Assets | 10,370,002 | 9,545,440 | 824,562 | 8.64% | | Total Liabilities | 594,391 | 563,296 | 31,095 | 5.52% | - Interests in joint ventures are a major component of the Group's total assets, accounting for **93.6% of total assets** as of June 30, 2025[12](index=12&type=chunk) [3. Revenue](index=6&type=section&id=3.%20Revenue) Total revenue for the first half

[Company Information and Announcement Statement](index=1&type=section&id=Company%20Information%20and%20Announcement%20Statement) This section provides the company's basic information, including its name, stock code, announcement details, and current board of directors, along with the HKEX disclaimer [Announcement Statement](index=1&type=section&id=Announcement%20Statement) The Hong Kong Stock Exchange disclaims responsibility for this announcement's content, accuracy, or completeness, and accepts no liability for any loss arising from it - The Hong Kong Stock Exchange disclaims responsibility for the content, accuracy, or completeness of this announcement, and accepts no liability for any loss arising from or in reliance upon it[1](index=1&type=chunk) [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) Lerado Financial Group Company Limited announces its unaudited interim results for the six months ended June 30, 2025, with current board members listed - Company name: Lerado Financial Group Company Limited, Stock Code: **1225**[2](index=2&type=chunk) - The announcement covers the unaudited consolidated results for the six months ended June 30, 2025, complying with HKEX Listing Rules[3](index=3&type=chunk) - As of the announcement date (August 28, 2025), executive directors are Ho Koon Lai, Chan Chun Kit, Leung Kam Po; independent non-executive directors are Yu Tat Chi, Yeung Hoi Fai, Lam Chuen Chi[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows, for the reporting period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company achieved revenue of HK$91,004 thousand and a profit of HK$49,263 thousand, reversing last year's loss, with basic and diluted EPS of HK$21.39 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 91,004 | 96,750 | (5,746) | -5.94% | | Cost of inventories and services | (26,566) | (30,261) | 3,695 | -12.21% | | Other income | 26,354 | 2,737 | 23,617 | 862.88% | | Net other gains and losses | 1,293 | (52,729) | 54,022 | -102.45% | | Net impairment losses (financial assets at amortised cost) | (6,250) | – | (6,250) | N/A | | Promotion and distribution expenses | (3,335) | (6,708) | 3,373 | -50.28% | | Administrative expenses | (29,723) | (31,507) | 1,784 | -5.66% | | Finance costs | (3,237) | (13,396) | 10,159 | -75.83% | | Profit/(Loss) before tax | 49,540 | (35,114) | 84,654 | -241.08% | | Income tax expense | (277) | (29) | (248) | 855.17% | | Profit/(Loss) for the period | 49,263 | (35,143) | 84,406 | -240.19% | | Profit/(Loss) for the period attributable to owners of the Company | 49,263 | (35,143) | 84,406 | -240.19% | | Basic earnings/(loss) per share (HK cents) | 21.39 | (15.26) | 36.65 | -240.17% | | Diluted earnings/(loss) per share (HK cents) | 21.39 | (15.26) | 36.65 | -240.17% | - Total comprehensive income for the period was **HK$51,645 thousand**, compared to a total comprehensive expense of HK$36,178 thousand in the prior period, primarily due to exchange differences[9](index=9&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were HK$571,749 thousand, with a significant reduction in current liabilities, leading to improved net current assets and total equity Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025-06-30 (HK$'000) | 2024-12-31 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Non-current assets | 70,490 | 69,997 | 493 | 0.70% | | Current assets | 501,259 | 754,717 | (253,458) | -33.58% | | **Liabilities** | | | | | | Current liabilities | 207,948 | 512,763 | (304,815) | -59.44% | | Non-current liabilities | 62,904 | 62,699 | 205 | 0.33% | | **Equity** | | | | | | Total equity | 300,897 | 249,252 | 51,645 | 20.72% | | Net current assets | 293,311 | 241,954 | 51,357 | 21.23% | - Bonds within current liabilities significantly decreased from **HK$313,092 thousand** as of December 31, 2024, to **HK$13,734 thousand** as of June 30, 2025, driving the overall reduction in current liabilities[13](index=13&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners increased from HK$249,626 thousand to HK$301,271 thousand, driven by profit for the period and exchange differences Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025-01-01 (HK$'000) | Profit for the period (HK$'000) | Exchange differences (HK$'000) | 2025-06-30 (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | Subtotal attributable to owners of the Company | 249,626 | 49,263 | 2,382 | 301,271 | | Non-controlling interests | (374) | – | – | (374) | | **Total** | **249,252** | **49,263** | **2,382** | **300,897** | - In the corresponding period of 2024, total equity attributable to owners decreased from **HK$428,581 thousand** to **HK$392,403 thousand**, primarily due to a loss of HK$35,143 thousand for the period and comprehensive expenses from exchange differences[15](index=15&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly increased to HK$267,913 thousand, but net cash used in financing activities rose substantially, resulting in a net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net cash from operating activities | 267,913 | 105,666 | 162,247 | 153.55% | | Net cash (used in)/from investing activities | (486) | 519 | (1,005) | -193.64% | | Net cash used in financing activities | (279,836) | (100,399) | (179,437) | 178.73% | | Net (decrease)/increase in cash and cash equivalents | (12,409) | 5,786 | (18,191) | -314.40% | | Cash and cash equivalents at beginning of period | 91,137 | 127,822 | (36,685) | -28.70% | | Cash and cash equivalents at end of period | 78,061 | 132,573 | (54,512) | -41.12% | - The substantial increase in net cash outflow from financing activities was primarily due to bond redemptions[13](index=13&type=chunk)[52](index=52&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, principal accounting policies, revenue and segment information, tax expenses, and other key financial notes for the condensed consolidated financial statements [1. Basis of Preparation](index=9&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 Interim Financial Reporting and applicable disclosure requirements of HKEX Listing Rules Appendix D2 - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the HKICPA and the applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange[18](index=18&type=chunk) [2. Principal Accounting Policies](index=9&type=section&id=2.%20Principal%20Accounting%20Policies) Accounting policies are consistent with the 2024 annual report; new HKFRS standards have no material financial impact, and the statements are reviewed by the audit committee but unaudited - Accounting policies are consistent with the 2024 annual report, and newly adopted HKFRS standards (such as amendments to HKAS 21 and HKFRS 1) have no material financial impact on the Group's condensed consolidated interim financial information[19](index=19&type=chunk) - The condensed consolidated financial statements are unaudited by the auditors but have been reviewed by the audit committee[20](index=20&type=chunk) [3. Revenue and Segment Information](index=10&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group operates in medical products and plastic toys, securities brokerage and asset management, and money lending. Total revenue decreased by 5.94% year-on-year, with money lending being the primary profit contributor - The Group is divided into three operating and reportable segments: medical products and plastic toys business, securities brokerage and asset management services, and money lending and other financial services[22](index=22&type=chunk) Revenue by Major Product and Service Categories (For the six months ended June 30) | Revenue Category | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Medical products | 32,058 | 36,286 | (4,228) | -11.65% | | Plastic toys | 3,363 | 1,812 | 1,551 | 85.60% | | Fees and commission income | 661 | 572 | 89 | 15.56% | | Total revenue from contracts with customers | 36,082 | 38,670 | (2,588) | -6.69% | | Interest income from loans receivable and finance leases | 54,922 | 58,080 | (3,158) | -5.44% | | **Total Revenue** | **91,004** | **96,750** | **(5,746)** | **-5.94%** | Revenue and Results by Reportable and Operating Segments (For the six months ended June 30) | Segment | 2025 Segment Revenue (HK$'000) | 2025 Segment Results (HK$'000) | 2024 Segment Revenue (HK$'000) | 2024 Segment Results (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | Medical products and plastic toys business | 35,421 | (17,529) | 38,098 | (6,742) | | Securities brokerage and asset management services | 1,198 | (1,087) | 9,897 | (3,275) | | Money lending and other financial services | 54,385 | 49,812 | 48,755 | 24,239 | | **Total** | **91,004** | **31,196** | **96,750** | **14,222** | [4. Income Tax Expense](index=13&type=section&id=4.%20Income%20Tax%20Expense) Income tax expense for H1 2025 was HK$277 thousand, mainly from PRC corporate income tax, with Hong Kong profits tax at a two-tiered rate and PRC subsidiaries at 25% Income Tax Expense (For the six months ended June 30) | Tax Source | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Hong Kong | – | 29 | | PRC corporate income tax | 277 | – | | **Total Income Tax Expense** | **277** | **29** | - Hong Kong profits tax is subject to a two-tiered tax rate system, with the first **HK$2,000,000** of assessable profits taxed at **8.25%** and the remainder at **16.5%**; PRC subsidiaries are taxed at **25%**[27](index=27&type=chunk)[28](index=28&type=chunk) [5. Profit/(Loss) for the Period](index=14&type=section&id=5.%20Profit%2F%28Loss%29%20for%20the%20Period) Profit for the period was primarily driven by a reversal from loss to gain in fair value changes of financial assets and a significant reduction in finance costs Key Items Affecting Profit/(Loss) for the Period (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 458 | 574 | (116) | | Depreciation of right-of-use assets | 359 | 1,004 | (645) | | Fair value change of financial assets at fair value through profit or loss | (4,796) | 43,230 | (48,026) | | Net impairment losses recognised on financial assets at amortised cost | 6,250 | – | 6,250 | | Bank interest income | (1,190) | (725) | (465) | | Gain on disposal of investment in a subsidiary | (241) | – | (241) | | Finance costs (bonds) | 3,224 | 13,361 | (10,137) | | Finance costs (lease liabilities) | 13 | 35 | (22) | - In H1 2025, financial assets at fair value through profit or loss recorded a gain of **HK$4,796 thousand**, compared to a loss of HK$43,230 thousand in the prior period, a key factor in the turnaround to profit[30](index=30&type=chunk) - Bond finance costs significantly decreased from **HK$13,361 thousand** to **HK$3,224 thousand**, a reduction of HK$10,137 thousand[30](index=30&type=chunk) [6. Dividends](index=14&type=section&id=6.%20Dividends) The Board does not recommend the payment of 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 (2024: nil)[31](index=31&type=chunk) [7. Earnings/(Loss) Per Share](index=15&type=section&id=7.%20Earnings%2F%28Loss%29%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were HK$21.39 cents, a significant improvement from a loss of HK$15.26 cents per share in the prior period Earnings/(Loss) Per Share (For the six months ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 21.39 | (15.26) | | Diluted earnings/(loss) per share | 21.39 | (15.26) | - The exercise of share options was not assumed for the calculation of diluted earnings per share as it would decrease earnings per share[32](index=32&type=chunk) [8. Trade and Other Receivables, Prepayments, Loans Receivable and Finance Lease Receivables](index=16&type=section&id=8.%20Trade%20and%20Other%20Receivables%2C%20Prepayments%2C%20Loans%20Receivable%20and%20Finance%20Lease%20Receivables) This section details the Group's trade and other receivables, prepayments, and loans receivable, highlighting changes in balances and credit terms across business segments [Trade and Other Receivables and Prepayments](index=16&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total trade and other receivables and prepayments decreased by 18.16% to HK$94,455 thousand, mainly due to reduced trade receivables in medical products and securities brokerage Trade and Other Receivables and Prepayments (As of June 30) | Item | 2025-06-30 (HK$'000) | 2024-12-31 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade receivables from medical products and plastic toys business (net of allowance) | 6,964 | 20,400 | (13,436) | -65.86% | | Trade receivables from securities brokerage business (net of allowance) | 42,651 | 50,405 | (7,754) | -15.38% | | Total trade receivables | 49,615 | 70,805 | (21,190) | -29.93% | | Purchase deposits, other receivables and deposits | 26,229 | 22,946 | 3,283 | 14.31% | | Amounts due from brokers | 17,213 | 20,202 | (2,989) | -14.79% | | Prepayments | 1,398 | 1,467 | (69) | -4.70% | | **Total** | **94,455** | **115,420** | **(20,965)** | **-18.16%** | - The average credit period for trade receivables in the medical products and plastic toys business is **60 days**[35](index=35&type=chunk) - For the securities brokerage business, trade receivables from cash clients are typically settled within two days after the transaction date, while margin client loans are repayable on demand[36](index=36&type=chunk) [Loans Receivable](index=18&type=section&id=Loans%20Receivable) As of June 30, 2025, total loans receivable (net of loss allowance) significantly decreased by 54.87% to HK$181,412 thousand, primarily due to reductions in loans receivable and interest receivable Loans Receivable (As of June 30) | Item | 2025-06-30 (HK$'000) | 2024-12-31 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Loans receivable | 627,825 | 797,270 | (169,445) | -21.25% | | Interest receivable | 187,670 | 259,234 | (71,564) | -27.61% | | Factoring loans receivable | 5,020 | 4,856 | 164 | 3.38% | | Loss allowance for expected credit losses | (639,103) | (659,353) | 20,250 | -3.07% | | **Total (net of allowance)** | **181,412** | **402,007** | **(220,595)** | **-54.87%** | - Loans receivable carry annual interest rates ranging from **6% to 18%**, and factoring loans have effective interest rates between **10% and 15%**[37](index=37&type=chunk)[38](index=38&type=chunk) [9. Financial Assets at Fair Value Through Profit or Loss](index=19&type=section&id=9.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, total financial assets at fair value through profit or loss were HK$129,661 thousand, with a gain of HK$4,796 thousand from fair value changes, reversing last year's loss, mainly due to growth in listed securities Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Item | 2025-06-30 (HK$'000) | 2024-12-31 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Listed securities held for trading (Hong Kong equities) | 116,143 | 114,150 | 1,993 | 1.75% | | Unlisted equity funds | 8,373 | 13,494 | (5,121) | -37.95% | | Unlisted debt securities | 5,145 | 6,540 | (1,395) | -21.33% | | **Total** | **129,661** | **134,184** | **(4,523)** | **-3.37%** | - A gain of approximately **HK$4,796 thousand** from fair value changes was recorded for the current period, compared to a loss of HK$997 thousand as of December 31, 2024[39](index=39&type=chunk) - Listed securities fair value measurement is classified as Level 1, while unlisted equity funds and unlisted debt securities are classified as Level 3[40](index=40&type=chunk) [10. Trade and Other Payables and Accruals](index=20&type=section&id=10.%20Trade%20and%20Other%20Payables%20and%20Accruals) As of June 30, 2025, total trade and other payables and accruals slightly decreased to HK$184,799 thousand, with an increase in trade payables for medical products and plastic toys, particularly for items over 90 days old Trade and Other Payables and Accruals (As of June 30) | Item | 2025-06-30 (HK$'000) | 2024-12-31 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade payables from medical products and plastic toys business | 16,704 | 10,472 | 6,232 | 59.51% | | Trade payables from securities brokerage business (cash clients) | 14,058 | 12,914 | 1,144 | 8.86% | | Trade payables from securities brokerage business (margin clients) | 3,693 | 4,144 | (451) | -10.88% | | Total trade payables | 34,455 | 27,530 | 6,925 | 25.15% | | Other payables and accruals | 150,344 | 162,198 | (11,854) | -7.31% | | **Total** | **184,799** | **189,728** | **(4,929)** | **-2.60%** | - Trade payables for medical products and plastic toys with an aging over **90 days** increased from **HK$2,533 thousand** as of December 31, 2024, to **HK$7,500 thousand** as of June 30, 2025[41](index=41&type=chunk) [11. Bonds](index=21&type=section&id=11.%20Bonds) As of June 30, 2025, total unsecured bonds significantly decreased by 82.45% to HK$63,734 thousand, carrying a fixed annual interest rate of 6% Bonds (As of June 30) | Item | 2025-06-30 (HK$'000) | 2024-12-31 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bonds, unsecured | 63,734 | 363,092 | (299,358) | -82.45% | - The bonds are unsecured, mature on the eighth anniversary of their issue date, and bear a fixed annual interest rate of **6%**, payable annually[42](index=42&type=chunk) [12. Share Capital](index=21&type=section&id=12.%20Share%20Capital) As of June 30, 2025, authorized share capital was HK$5,000,000 thousand, with issued share capital of HK$2,304 thousand, comprising 230,322,413 shares, consistent with the end of 2024 Share Capital (As of June 30) | Item | 2025-06-30 (HK$'000) | 2024-12-31 (HK$'000) | | :--- | :--- | :--- | | Authorized share capital (500,000,000,000 ordinary shares) | 5,000,000 | 5,000,000 | | Issued share capital (230,322,413 ordinary shares) | 2,304 | 2,304 | [13. Related Party Disclosures](index=22&type=section&id=13.%20Related%20Party%20Disclosures) For the six months ended June 30, 2025, key management personnel compensation slightly increased to HK$1,269 thousand, with director's remuneration determined by the Board and reviewed by the Remuneration Committee Key Management Personnel Compensation (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Short-term employee benefits | 1,269 | 1,229 | 40 | 3.25% | - Directors' remuneration is determined by the Board based on individual performance and market trends, and reviewed by the Remuneration Committee[45](index=45&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business operations, financial performance, liquidity, and future prospects, along with discussions on key risks and corporate governance [Business Review](index=23&type=section&id=Business%20Review) The Group engages in financial services (securities brokerage, margin financing, money lending) and manufacturing/distribution of plastic toys and medical products, with money lending as the primary revenue source - The Company is an investment holding company, primarily engaged in financial services (securities brokerage, margin financing, money lending) and the manufacturing and distribution of children's plastic toys and medical products[46](index=46&type=chunk) [Medical Products and Plastic Toys Business](index=23&type=section&id=Medical%20Products%20and%20Plastic%20Toys%20Business) For the six months ended June 30, 2025, medical product sales decreased by 11.7% to HK$32.1 million, while plastic toy sales significantly increased by 85.6% to HK$3.4 million due to increased orders from China - Medical product sales revenue was approximately **HK$32.1 million**, a year-on-year decrease of approximately **11.7%**[47](index=47&type=chunk) - Plastic toy sales revenue was approximately **HK$3.4 million**, a year-on-year increase of approximately **85.6%**, primarily due to increased orders from Chinese customers[47](index=47&type=chunk) [Securities Brokerage, Margin Financing, Underwriting and Placement, and Asset Management Business](index=23&type=section&id=Securities%20Brokerage%2C%20Margin%20Financing%2C%20Underwriting%20and%20Placement%2C%20and%20Asset%20Management%20Business) Bagallon Securities Limited's revenue significantly decreased to HK$1.2 million, and the Group is planning to develop asset management and provide comprehensive financial services - Wholly-owned subsidiary Bagallon Securities Limited's revenue for the period was approximately **HK$1.2 million**, a significant decrease from HK$9.9 million in the corresponding period of 2024[48](index=48&type=chunk) - The Group plans to offer comprehensive financial services to clients, including asset management and corporate finance, and is currently in the planning stage for developing its asset management business[48](index=48&type=chunk) [Money Lending and Finance Lease](index=23&type=section&id=Money%20Lending%20and%20Finance%20Lease) Money lending business generated approximately HK$54.4 million in interest income, accounting for 59.8% of total Group revenue, and is expected to continue contributing significantly - The money lending business continues to develop, providing secured and unsecured loans to individuals and corporations, and conducting finance lease business in China[49](index=49&type=chunk) - Interest income for the period was approximately **HK$54.4 million**, accounting for approximately **59.8%** of the Group's total revenue, and the Directors believe this business will continue to contribute revenue[49](index=49&type=chunk) [Prospects](index=24&type=section&id=Prospects) The Group aims to expand its financial services in Hong Kong and China, including money lending, finance leasing, and securities brokerage, while exploring new investments and strengthening corporate governance for shareholder value - The Group will develop and expand its financial segment in Hong Kong and China, including money lending, finance lease, and securities brokerage businesses[50](index=50&type=chunk) - Plans include offering corporate finance, asset management, and financial planning services, and identifying potential investment opportunities to diversify business scope[50](index=50&type=chunk) - The Group will adopt prudent and flexible strategies to address market challenges and is committed to strengthening corporate governance to create maximum shareholder value[50](index=50&type=chunk)[51](index=51&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) For the six months ended June 30, 2025, consolidated revenue decreased by 5.9% to HK$91.0 million, but the Group achieved a profit of HK$49.5 million, reversing last year's loss, mainly due to fair value gains on financial assets and bond finance cost reversal - Consolidated revenue was approximately **HK$91.0 million**, a year-on-year decrease of approximately **5.9%**, primarily due to a decrease of approximately HK$4.2 million in medical product revenue[52](index=52&type=chunk) - Gross profit margin was approximately **70.8%**, with gross profit of approximately **HK$64.4 million**, a decrease of approximately HK$2.1 million from the prior period[6](index=6&type=chunk)[52](index=52&type=chunk) - Profit for the period was approximately **HK$49.5 million** (compared to a loss of HK$35.1 million in the prior period), mainly due to: (i) a fair value gain of approximately **HK$4.8 million** on financial assets at fair value through profit or loss (compared to a loss of HK$43.2 million in the prior period); and (ii) a reversal of finance costs on redeemed bonds of approximately **HK$23.1 million**[52](index=52&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, cash and cash equivalents decreased to HK$78.1 million, but a significant reduction in bonds payable improved net current assets, current ratio, and debt-to-asset ratio, indicating a stronger financial position Key Liquidity and Financial Resources Indicators (As of June 30) | Indicator | 2025-06-30 (HK$'000) | 2024-12-31 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 78,100 | 91,100 | (13,000) | -14.27% | | Bonds payable | 63,700 | 363,100 | (299,400) | -82.46% | | Net current assets | 293,300 | 242,000 | 51,300 | 21.20% | | Current ratio | 2.4 | 1.5 | 0.9 | 60.00% | | Debt-to-asset ratio | 21.2% | 145.7% | -124.5% | -85.45% | - The debt-to-asset ratio significantly decreased to **21.2%**, indicating a substantial improvement in financial position, primarily due to the significant reduction in bonds payable[53](index=53&type=chunk) [Significant Investments](index=25&type=section&id=Significant%20Investments) As of June 30, 2025, the Group held no significant investments exceeding 5% of its total assets - As of June 30, 2025, the Group held no trading investments or other investments exceeding **5%** of its total assets, thus no significant investments[54](index=54&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[55](index=55&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from transactions in USD, RMB, HKD, EUR, and TWD, with RMB appreciation posing a direct impact; management assesses risk but has no hedging policy - The Group's monetary assets, liabilities, and transactions are primarily denominated in USD, RMB, HKD, EUR, and TWD, exposing it to foreign exchange risk[56](index=56&type=chunk) - The Group would be directly affected by an appreciation of the RMB; management continuously assesses the risk but currently has no hedging policy[56](index=56&type=chunk) [Share Price Risk](index=26&type=section&id=Share%20Price%20Risk) The Group is exposed to share price risk from its investments in listed securities; management monitors price movements and market conditions but has no hedging policy - The Group is exposed to share price risk due to its investments in listed securities[57](index=57&type=chunk) - Management manages this risk by monitoring price movements and market conditions but currently has no hedging policy[57](index=57&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Company had no significant contingent liabilities - As of June 30, 2025, the Company had no significant contingent liabilities[58](index=58&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 141 staff, with 132 in China; remuneration includes basic salary, discretionary bonuses, retirement benefits, and share options, with training provided - As of June 30, 2025, the Group employed a total of **141 staff**, with **132** in China and the remainder in Hong Kong[59](index=59&type=chunk) - Employee remuneration includes basic salary, discretionary bonuses, and contributions to retirement benefit schemes, with share options granted based on individual performance, and internal and external training provided[59](index=59&type=chunk) [Interim Dividend](index=26&type=section&id=Interim%20Dividend) The Board does not recommend the payment of 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 (2024: nil)[60](index=60&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&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 its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[61](index=61&type=chunk) [Share Option Scheme](index=27&type=section&id=Share%20Option%20Scheme) The 2022 Share Option Scheme was adopted on June 29, 2022; no options were granted, exercised, lapsed, or cancelled, and none were outstanding for the six months ended June 30, 2025 - The 2022 Share Option Scheme was adopted on June 29, 2022; for the six months ended June 30, 2025, no share options were granted, exercised, lapsed, or cancelled[62](index=62&type=chunk) - As of June 30, 2025, there were no outstanding share options under the 2022 Share Option Scheme, with **23,032,241** share options available for grant[62](index=62&type=chunk) [Future Plans for Material Investments or Capital Assets](index=27&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had no specific future plans for material investments or capital assets - As of June 30, 2025, the Group had no specific plans for material investments or capital assets[63](index=63&type=chunk) [Material Acquisitions and Disposals](index=27&type=section&id=Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals[64](index=64&type=chunk) [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after the reporting period up to the date of this report - No significant events occurred after the six months ended June 30, 2025, and up to the date of this report[65](index=65&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section covers additional disclosures, including directors' and major shareholders' interests, corporate governance compliance, audit committee review, and other relevant statutory information [Directors' Interests in Shares and Underlying Shares](index=28&type=section&id=Directors'%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, no directors, supervisors, or chief executives held disclosable interests or short positions in the Company's or its associated corporations' shares, underlying shares, or debentures - As of June 30, 2025, no directors, supervisors, or chief executives of the Company held any interests or short positions in the shares, underlying shares, and/or debentures of the Company or its associated corporations required to be disclosed under Section 352 of the SFO or Appendix C3 of the Listing Rules[66](index=66&type=chunk) [Major Shareholders](index=28&type=section&id=Major%20Shareholders) As of June 30, 2025, Opus Platinum Growth Fund held 7.82% of the Company's issued share capital, with Mr. Lai Shu Fun deemed to have the same interest due to indirect ownership Major Shareholders' Shareholdings (As of June 30) | Shareholder Name/Name | Nature of Interest | Number of Ordinary Shares Held | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Opus Platinum Growth Fund | Beneficial owner | 18,000,000 | 7.82% | | Mr. Lai Shu Fun | Interest in controlled corporation | 18,000,000 | 7.82% | - Mr. Lai Shu Fun indirectly owns approximately **40.03%** of the total issued share capital of Opus Platinum Growth Fund and is therefore deemed to have an interest in the shares held by the fund[68](index=68&type=chunk) [Corporate Governance Code](index=29&type=section&id=Corporate%20Governance%20Code) The Directors believe the Company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Directors believe that the Company has complied with the Corporate Governance Code set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2025[70](index=70&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, has reviewed the Company's accounting principles, internal controls, financial reporting, and the unaudited condensed consolidated financial statements - The Audit Committee comprises three independent non-executive directors (Mr. Yu Tat Chi (Chairman), Mr. Yeung Hoi Fai, and Mr. Lam Chuen Chi)[71](index=71&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Company, discussed auditing, internal control, and financial reporting matters, and reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[71](index=71&type=chunk) [Compliance with the Model Code](index=29&type=section&id=Compliance%20with%20the%20Model%20Code) All Directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025 - All Directors confirmed that they have fully complied with the required standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025[72](index=72&type=chunk)

Financial Performance - For the six months ended June 30, 2025, total revenue was HKD 34,540,000, an increase of 12% compared to HKD 30,784,000 for the same period in 2024[3] - Asset management revenue reached HKD 14,936,000, up 24% from HKD 12,083,000 year-on-year[3] - The company reported a loss before tax of HKD 2,131,000, a significant improvement from a loss of HKD 16,010,000 in the previous year[4] - The total comprehensive loss for the period was HKD 1,648,000, compared to a loss of HKD 16,335,000 in the same period last year[4] - Basic and diluted loss per share was HKD 0.140, compared to HKD 1.084 for the same period in 2024[4] - The company reported a loss of HKD 2,105,000 for the six months ended June 30, 2025, compared to a loss of HKD 16,251,000 for the previous period[7] - The group recorded a consolidated net loss of approximately HKD 2.13 million for the period, significantly reduced from HKD 16.01 million for the same period in 2024, mainly due to decreased net fair value losses on financial assets[40] Assets and Liabilities - Non-current assets decreased to HKD 19,535,000 from HKD 21,743,000 as of December 31, 2024[5] - Current assets increased to HKD 277,389,000 from HKD 286,741,000, with cash and cash equivalents rising to HKD 87,859,000 from HKD 67,130,000[5] - Total liabilities decreased to HKD 27,038,000 from HKD 35,215,000, indicating improved financial stability[5] - Total assets as of June 30, 2025, amounted to HKD 296,924,000, with segment assets for investment and financial advisory at HKD 48,944,000 and HKD 106,795,000 for securities trading and investment[21] - The total liabilities as of June 30, 2025, were HKD 27,923,000, with segment liabilities for securities trading and investment at HKD 2,522,000[21] - The company’s accumulated losses increased to HKD 240,780,000 as of June 30, 2025, from HKD 228,896,000 at the beginning of the year[7] Revenue Breakdown - The revenue from the sale of wine and beverages decreased significantly to HKD 19,296,000 from HKD 35,123,000, a decline of approximately 45%[15] - For the six months ended June 30, 2025, total revenue from customer contracts was HKD 35,539,000, a decrease of 25% compared to HKD 47,469,000 for the same period in 2024[19] - Revenue from external customers in Hong Kong was HKD 35,539,000 for the six months ended June 30, 2025, while specific non-current assets in Hong Kong were valued at HKD 9,734,000[24] - Revenue from the wine and beverage trading segment decreased from approximately HKD 35.12 million in the previous year to about HKD 19.30 million in the current period, with a segment loss of approximately HKD 1.26 million[53] Operational Focus and Strategy - The company plans to continue focusing on asset management and investment advisory services to drive future growth[3] - The company operates primarily in asset management, investment and financial advisory services, and securities trading[14] - The group focuses on long-term investment opportunities, particularly in private equity and pre-IPO investments, targeting high-growth sectors in the Greater China region[41] - The group aims to enhance shareholder value through strategic investment portfolio allocation and leveraging Hong Kong's broader financial ecosystem[49] - The group is actively seeking opportunities in underwriting and placement transactions to establish relationships with market leaders[52] Compliance and Governance - The financial report was prepared in accordance with the Hong Kong Financial Reporting Standards and has been reviewed by the audit committee[12] - The company has not applied any new or revised accounting standards that have a significant impact on the financial statements for the current period[13] - The group aims to ensure compliance with applicable laws and regulations, including anti-money laundering standards and internal risk management policies[43] - The company has fully complied with the Corporate Governance Code during the reporting period[84] Shareholder Information - The company did not declare or recommend any interim dividends for both the six months ended June 30, 2025, and 2024[27] - There were no dividends declared or recommended during the period, maintaining a consistent policy of no dividend distribution[69] - The average number of issued ordinary shares was 1,499,749,920 for both periods, resulting in basic and diluted loss per share being the same due to the exercise price of share options being higher than the average market price[29] Market Trends - The Hang Seng Index reached a three-year high in June 2025, indicating a positive market trend despite external macroeconomic pressures[64] - The group has commenced self-operated trading of cryptocurrencies since 2024 and is exploring potential developments related to cryptocurrency asset management[66] Employee and Operational Costs - Employee expenses, including director remuneration, decreased to HKD 7,909,000 in 2025 from HKD 8,618,000 in 2024, a reduction of approximately 8.2%[6] - The cost of inventory recognized as an expense was HKD 18,340,000 for the six months ended June 30, 2025, down from HKD 33,210,000 in 2024, indicating a decrease of about 44.8%[6] Investment Activities - The group has recognized an expected credit loss provision of HKD 20.77 million for the CFLD notes, which is 0.1% of the group's total consolidated assets[56] - The group invested HKD 14.80 million in three listed Special Purpose Acquisition Companies (SPACs), with a current investment book value of HKD 1.2 million as of June 30, 2025[60] - The group reported a loss of approximately HKD 1.52 million from securities trading and investment during the period, a significant reduction compared to HKD 16.69 million in the previous period[59]

Executive Summary [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company achieved strong financial growth in H1 2025, with customer contract revenue up **40.0%** to **RMB 3.18 billion** and profit attributable to equity holders surging **117.8%** to **RMB 489 million** | Metric | 2025 (RMB million) | 2024 (RMB million) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Customer Contract Revenue | 3,181.3 | 2,271.9 | 40.0% | | Gross Profit | 1,775.1 | 1,141.0 | 55.6% | | Profit for the Period | 506.9 | 387.6 | 30.8% | | Profit Attributable to Equity Holders | 489.3 | 224.7 | 117.8% | | Adjusted EBITDA | 645.7 | 448.5 | 44.0% | [Business Summary](index=3&type=section&id=Business%20Summary) Both social and innovation businesses performed well, with social revenue reaching **RMB 2.83 billion** and innovation revenue **RMB 347 million**, growing **37.0%** and **70.5%** respectively | Business Segment | Revenue (RMB million) | Year-on-Year Growth | | :--- | :--- | :--- | | Social Business | 2,834 | 37.0% | | Innovation Business | 347 | 70.5% | - Core products in the Middle East and North Africa market saw business scale increase by **over 60%** year-on-year[9](index=9&type=chunk) - Establishment of Hong Kong global headquarters strengthens the globalization strategy[10](index=10&type=chunk) Chairman's Report [Overall Performance and Strategic Milestones](index=4&type=section&id=Overall%20Performance%20and%20Strategic%20Milestones) The Chairman's report highlights H1 2025 as a period of solid business foundation, with significant revenue and profit growth across social and innovation segments - Total revenue reached **RMB 3.18 billion**, a **40.0%** year-on-year increase; profit attributable to equity holders reached **RMB 489 million**, up **117.8%** year-on-year[11](index=11&type=chunk) - Establishment of Hong Kong global headquarters marks a new stage in the globalization strategy[12](index=12&type=chunk) - Organizational structure upgrade initiated, centralizing underlying capabilities like product, R&D, operations, and growth to enhance refined management and resource allocation efficiency[12](index=12&type=chunk) [Corporate Social Responsibility](index=5&type=section&id=Corporate%20Social%20Responsibility) The company actively fulfills its corporate social responsibility through donations in the Middle East and Southeast Asia, and global youth protection initiatives - Donated supplies and funds to local orphanages during Ramadan in the Middle East[13](index=13&type=chunk) - Collaborated with local creators in Southeast Asia to donate food and funds to charity schools for children in need[13](index=13&type=chunk) - Continuously promotes the "Baby Pig Youth Protection Program" globally, focusing on the healthy growth of children and adolescents worldwide[13](index=13&type=chunk) Performance Review [Pan-population Social Business](index=5&type=section&id=Pan-population%20Social%20Business) Pan-population social business achieved solid growth in H1 2025, with platforms like SUGO and TopTop seeing over 100% revenue and profit growth, enhanced by AI technology - SUGO revenue increased by **over 100%**, with profit growing by **over 150%**[14](index=14&type=chunk) - TopTop revenue increased by **over 100%** year-on-year, with profit growing by **over 100%**[14](index=14&type=chunk) - SUGO ranked **7th** in social networking app revenue in the Middle East, and TopTop ranked **10th** in Google Play game app rankings[14](index=14&type=chunk) - Self-developed multimodal algorithm model Boomiix continues to upgrade, enhancing product social matching efficiency and intelligent operations[15](index=15&type=chunk) [Diverse-population Social Business](index=6&type=section&id=Diverse-population%20Social%20Business) Diverse-population social business maintained healthy growth in H1 2025, expanding HeeSay's brand influence in key markets and leveraging AI for improved user experience and efficiency - HeeSay's brand influence further expanded in core markets like Southeast Asia, with HeeSay GALA held in Thailand and the Philippines in January 2025[17](index=17&type=chunk) - AI technology applied to recommendation systems, operational intelligence, and risk control strategies, enhancing user social experience and commercial efficiency[17](index=17&type=chunk) - HeeSay ranked **16th** in Google Play's social app revenue list in the Southeast Asian market[17](index=17&type=chunk) [Innovation Business](index=6&type=section&id=Innovation%20Business) Innovation business established a clear second growth curve in H1 2025, with premium games entering profitability, social e-commerce growing over 100%, and new AI content communities launched - Premium game business officially entered the profitability recovery period, with flagship game "Alice's Dream: Merge Games" entering long-term operation[18](index=18&type=chunk) - Deep application of AI significantly shortened game R&D cycles, improving user retention and ARPU performance[18](index=18&type=chunk) - Social e-commerce "Hormone Health" profit increased by **over 100%** year-on-year, solidifying its leading position in the health service niche market[19](index=19&type=chunk) - Launched AI creative content community Aippy, entering the AI Agent and AI content community sectors[19](index=19&type=chunk) Strategy and Outlook [Deepening Social Product Portfolio Diversification and Market Layout](index=7&type=section&id=Deepening%20Social%20Product%20Portfolio%20Diversification%20and%20Market%20Layout) The company will diversify its social product portfolio, strengthen market presence in MENA, expand into new markets, and leverage organizational upgrades and AI technology for growth - The global social application market is projected to exceed **USD 310.37 billion** by 2030[20](index=20&type=chunk) - Continuously consolidate the leading positions of products like MICO, YoHo, SUGO, TopTop, and HeeSay in their respective vertical segments, and develop more products with monthly revenue exceeding **tens of millions of US dollars**[20](index=20&type=chunk) - Continue to firmly invest and exert efforts in the Middle East and North Africa market, consolidate its leading position, and actively expand into new markets to complete the global layout[20](index=20&type=chunk) - Rely on the organizational upgrade initiated in H1 2025 to further enhance resource coordination efficiency and response speed, and deepen AI technology empowerment across the entire process[21](index=21&type=chunk) [Continuing to Advance Innovation Business, Consolidating Second Growth Curve](index=8&type=section&id=Continuing%20to%20Advance%20Innovation%20Business,%20Consolidating%20Second%20Growth%20Curve) The company will advance its innovation business in H2 2025, focusing on long-term operation of premium games, expanding social e-commerce, and exploring AI+ social entertainment products - Adhere to the "premium game" strategy, continuously enhance long-term game operation capabilities, focus on the merge-puzzle casual game segment, and actively plan new product launches through "product replication"[22](index=22&type=chunk) - Social e-commerce business will deeply cultivate the HIV prevention and sexual health service fields, upgrading services and expanding categories based on user needs[22](index=22&type=chunk) - Continuously explore "AI+social entertainment" innovative products, leveraging new products like Aippy to seize new opportunities in the emotional value track in the AI era[22](index=22&type=chunk) [Deepening AI Application, Exploring Technology Opportunities](index=8&type=section&id=Deepening%20AI%20Application,%20Exploring%20Technology%20Opportunities) The company will deepen AI integration across business scenarios, upgrade its AI platform, and invest in AI+ social/entertainment/gaming products to capture new market opportunities - Continuously upgrade the AI middle platform, implementing AI efficiency systems for different business needs, assisting existing products in achieving more precise social matching, content recommendations, efficient risk control audits, ecological operations, user identification, and marketing acquisition[23](index=23&type=chunk) - Increase investment in AI, actively deploying innovative products in areas such as "AI+social," "AI+entertainment," and "AI+gaming"[23](index=23&type=chunk) - Believes that the global emotional value track is ushering in new breakthroughs, and AI technology will comprehensively enhance productivity, bringing greater commercialization and profit potential[23](index=23&type=chunk) Financial Review [Revenue](index=9&type=section&id=Revenue) In H1 2025, customer contract revenue reached **RMB 3.18 billion**, up **40.0%**, driven by strong growth in both social (**37.0%**) and innovation (**70.5%**) businesses | Business Segment | 2025 (RMB thousand) | Proportion | 2024 (RMB thousand) | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Social Business | 2,834,334 | 89.1% | 2,068,453 | 91.0% | 37.0% | | Innovation Business | 346,931 | 10.9% | 203,472 | 9.0% | 70.5% | | **Total** | **3,181,265** | **100.0%** | **2,271,925** | **100.0%** | **40.0%** | - Social business growth primarily attributed to deeper user demand insights, intensified local operations, diversified product portfolio, active new market expansion, and enhanced commercial efficiency through AI technology iteration of recommendation systems[24](index=24&type=chunk) - Innovation business growth mainly benefited from the steady development of traffic monetization, social e-commerce, and contributions from premium games[25](index=25&type=chunk) [Cost of Revenue](index=10&type=section&id=Cost%20of%20Revenue) In H1 2025, cost of revenue increased by **24.3%** to **RMB 1.41 billion**, primarily due to higher revenue sharing, share-based payments, and employee benefits in the social business | Metric | 2025 (RMB thousand) | Proportion | 2024 (RMB thousand) | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Live Streamer and Channel Revenue Sharing | 903,660 | 28.4% | 787,258 | 34.7% | 14.8% | | Employee Benefit Expenses | 179,316 | 5.6% | 132,888 | 5.8% | 34.9% | | Share-based Payment Expenses | 112,985 | 3.6% | 20,776 | 0.9% | 443.8% | | **Total** | **1,406,145** | **44.2%** | **1,130,894** | **49.8%** | **24.3%** | - Social business cost of revenue increased by **26.4%**, mainly due to increased live streamer and channel revenue sharing, share-based payment expenses, and employee benefit expenses[26](index=26&type=chunk) - Innovation business cost of revenue saw a marginal increase of **0.3%**[27](index=27&type=chunk) [Gross Profit and Gross Margin](index=11&type=section&id=Gross%20Profit%20and%20Gross%20Margin) In H1 2025, gross profit increased by **55.6%** to **RMB 1.78 billion**, with gross margin rising to **55.8%**, driven by improved efficiency and strong performance in both segments | Business Segment | 2025 Gross Profit (RMB thousand) | 2025 Gross Margin | 2024 Gross Profit (RMB thousand) | 2024 Gross Margin | Gross Profit Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Social Business | 1,519,437 | 53.6% | 1,028,565 | 49.7% | 47.7% | | Innovation Business | 255,683 | 73.7% | 112,466 | 55.3% | 127.3% | | **Total** | **1,775,120** | **55.8%** | **1,141,031** | **50.2%** | **55.6%** | - The increase in social business gross margin is primarily due to optimized resource allocation and improved operating efficiency through organizational structure upgrades and refined management of core businesses[29](index=29&type=chunk) - The increase in innovation business gross margin is mainly attributed to the steady development of traffic monetization, social e-commerce businesses, and contributions from premium games[29](index=29&type=chunk) [Operating Expenses](index=11&type=section&id=Operating%20Expenses) In H1 2025, selling and marketing expenses surged **108.0%** to **RMB 1.00 billion**, while R&D and G&A expenses saw modest increases, mainly due to higher employee benefits [Selling and Marketing Expenses](index=11&type=section&id=Selling%20and%20Marketing%20Expenses) - Selling and marketing expenses were **RMB 1.00 billion**, an increase of **108.0%** from **RMB 482 million** in H1 2024[30](index=30&type=chunk) - This increase was primarily due to intensified efforts in promoting social businesses[30](index=30&type=chunk) [Research and Development Expenses](index=11&type=section&id=Research%20and%20Development%20Expenses) - Research and development expenses were **RMB 168 million**, an increase of **2.3%** from **RMB 164 million** in H1 2024[31](index=31&type=chunk) - This was mainly due to an increase in employee benefit expenses[31](index=31&type=chunk) [General and Administrative Expenses](index=12&type=section&id=General%20and%20Administrative%20Expenses) - General and administrative expenses were **RMB 122 million**, an increase of **15.2%** from **RMB 106 million** in H1 2024[32](index=32&type=chunk) - This was mainly due to an increase in employee benefit expenses[32](index=32&type=chunk) [Operating Profit and Net Profit](index=12&type=section&id=Operating%20Profit%20and%20Net%20Profit) Operating profit increased by **30.8%** to **RMB 479 million** in H1 2025, driven by gross profit growth partially offset by higher selling and marketing expenses, with net profit also up **30.8%** - Operating profit was **RMB 479 million**, an increase of **30.8%** from **RMB 367 million** in H1 2024[33](index=33&type=chunk) - The increase in operating profit was primarily due to a **RMB 634 million** increase in gross profit, partially offset by a **RMB 520 million** increase in selling and marketing expenses[33](index=33&type=chunk) - Net finance income increased to **RMB 26.4 million**, up from **RMB 18.2 million** in H1 2024, mainly due to increased interest income from bank deposits[34](index=34&type=chunk) - Profit for the period was **RMB 507 million**, an increase of **30.8%** from **RMB 388 million** in H1 2024[36](index=36&type=chunk) [Non-IFRS Measures](index=12&type=section&id=Non-IFRS%20Measures) Adjusted EBITDA, a non-IFRS measure, increased by **44.0%** to **RMB 646 million** in H1 2025, providing a clearer view of core business performance by excluding non-operating items | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Operating Profit | 479,385 | 366,585 | 30.8% | | Add: Share-based Payment Expenses | 122,959 | 33,377 | 268.4% | | Add: Depreciation and Amortization | 43,382 | 48,502 | -10.6% | | **Adjusted EBITDA** | **645,726** | **448,464** | **44.0%** | - Adjusted EBITDA is defined as adjusted operating profit, with adjustments including share-based payment expenses, depreciation, and amortization[38](index=38&type=chunk) Financial Position and Cash Flow [Capital Structure](index=14&type=section&id=Capital%20Structure) As of June 30, 2025, total assets increased to **RMB 3.89 billion**, total liabilities decreased to **RMB 1.76 billion**, and the asset-liability ratio improved to **45.2%**, indicating a more robust financial position - Total assets increased from **RMB 3,583.0 million** as of December 31, 2024, to **RMB 3,889.7 million** as of June 30, 2025[40](index=40&type=chunk) - Total liabilities decreased from **RMB 1,928.1 million** as of December 31, 2024, to **RMB 1,759.1 million** as of June 30, 2025[40](index=40&type=chunk) - The asset-liability ratio decreased from **53.8%** as of December 31, 2024, to **45.2%** as of June 30, 2025[40](index=40&type=chunk) [Financial Resources and Operating Cash Flow](index=14&type=section&id=Financial%20Resources%20and%20Operating%20Cash%20Flow) As of June 30, 2025, cash and cash equivalents increased to **RMB 2.22 billion**, with net cash inflow from operating activities significantly rising to **RMB 539 million** - As of June 30, 2025, cash and cash equivalents were **RMB 2,215.9 million**, compared to **RMB 2,048.6 million** as of December 31, 2024[41](index=41&type=chunk) - Net cash inflow from operating activities for the six months ended June 30, 2025, increased to **RMB 539.4 million**, compared to **RMB 358.7 million** for the six months ended June 30, 2024[41](index=41&type=chunk) [Other Financial Items](index=15&type=section&id=Other%20Financial%20Items) The company invests surplus cash in low-risk financial products, with financial assets at fair value decreasing to **RMB 154 million** due to redemptions, and plans strategic investments for synergy - As of June 30, 2025, financial assets measured at fair value decreased to **RMB 153.5 million**, primarily due to the redemption of wealth management products[42](index=42&type=chunk) - Capital expenditure for the six months ended June 30, 2025, was **RMB 5.3 million**, an increase of **RMB 0.7 million** compared to **RMB 4.6 million** for the six months ended June 30, 2024[43](index=43&type=chunk) - Plans to undertake strategic investments or acquisitions to create synergistic effects among its businesses[46](index=46&type=chunk) - As of June 30, 2025, the company had no assets pledged and no significant contingent liabilities[45](index=45&type=chunk)[47](index=47&type=chunk) Risks and Uncertainties [Key Business Risks](index=16&type=section&id=Key%20Business%20Risks) The company faces significant business risks including intense competition, inability to innovate, mobile internet stagnation, content liability, data privacy breaches, and cybersecurity vulnerabilities - Faces intense competition in a rapidly developing industry, potentially unable to maintain R&D innovation or successfully compete with existing and future competitors[50](index=50&type=chunk) - If the mobile internet industry fails to continue its development, profitability and prospects may be materially and adversely affected[50](index=50&type=chunk) - May be held liable for information or content displayed, published, or linked on mobile applications, potentially leading to user loss and reputational damage[50](index=50&type=chunk) - Misappropriation or misuse of private data and non-compliance with data protection laws and regulations may result in claims, fines, increased operating costs, or a reduction in users and customers[50](index=50&type=chunk) - Failure to prevent security breaches, cyberattacks, or other unauthorized access to systems or user data could lead to severe consequences[50](index=50&type=chunk) [Foreign Exchange Risk and Post-reporting Period Events](index=16&type=section&id=Foreign%20Exchange%20Risk%20and%20Post-reporting%20Period%20Events) The company is exposed to foreign exchange risks from USD and HKD denominated transactions but did not hedge during H1 2025, with no significant post-reporting period events to disclose - Operates international businesses, with major receipts and payments denominated in US dollars, exposing it to foreign exchange risks arising from currencies such as the US dollar and Hong Kong dollar[48](index=48&type=chunk) - For the six months ended June 30, 2025, the company did not hedge any foreign exchange fluctuations[48](index=48&type=chunk) - The Group had no significant events requiring disclosure after the reporting period[49](index=49&type=chunk) Other Information [Share Transactions](index=17&type=section&id=Share%20Transactions) No listed securities were bought, sold, or redeemed by the company in H1 2025, though Three D Partners Limited purchased **40.34 million shares** under a restricted share unit award scheme - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[51](index=51&type=chunk) | Metric | Value | | :--- | :--- | | Total Shares Purchased | 40,338,000 shares | | Percentage of Total Issued Shares Purchased | Approximately 2.86% | | Average Consideration Per Share | Approximately HKD 4.29 | | Total Consideration for Shares Purchased | Approximately HKD 173,227,130 | [Employees and Remuneration](index=17&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the company had **1,742 full-time employees**, with **55.74%** in R&D, and maintains competitive recruitment, benefits, and performance-based remuneration policies - As of June 30, 2025, the company had a total of **1,742** full-time employees, of whom **971** (**55.74%** of the total full-time employees) were engaged in research and development activities[53](index=53&type=chunk) - A systematic recruitment process is in place, offering competitive benefits and training opportunities[53](index=53&type=chunk) - Employee salaries are determined with reference to market conditions and individual employee performance, qualifications, and experience, with performance bonuses and share awards decided based on evaluation ratings[53](index=53&type=chunk) Corporate Governance [Audit Committee](index=17&type=section&id=Audit%20Committee) The company has established an Audit Committee in accordance with the Corporate Governance Code, comprising three independent non-executive directors, with Mr. Chi Shujin as Chairman - An Audit Committee has been established in accordance with the Corporate Governance Code, consisting of three independent non-executive directors, with Mr. Chi Shujin as Chairman[54](index=54&type=chunk) [Compliance with Corporate Governance Code](index=18&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company adheres to a rigorous corporate governance framework, complying with the Listing Rules' Corporate Governance Code throughout the reporting period, with a board composition ensuring independence - The company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules and has complied with the principles and code provisions therein during the reporting period[55](index=55&type=chunk)[56](index=56&type=chunk) - The Board currently comprises four executive directors and three independent non-executive directors, ensuring a considerable degree of independence in its composition[55](index=55&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=18&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the reporting period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[57](index=57&type=chunk) - Each director has confirmed, following specific enquiry, that they have complied with the required standards set out in the Model Code during the reporting period[57](index=57&type=chunk) Interim Dividend [Dividend Decision](index=18&type=section&id=Dividend%20Decision) The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[58](index=58&type=chunk) Financial Statements [Interim Condensed Consolidated Statement of Comprehensive Income](index=19&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The unaudited interim condensed consolidated statement of comprehensive income for H1 2025 shows customer contract revenue of **RMB 3.18 billion**, profit for the period of **RMB 507 million**, and basic earnings per share of **RMB 0.39** | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer Contract Revenue | 3,181,265 | 2,271,925 | | Gross Profit | 1,775,120 | 1,141,031 | | Operating Profit | 479,385 | 366,585 | | Profit for the Period | 506,931 | 387,618 | | Profit Attributable to Equity Holders | 489,283 | 224,676 | | Basic Earnings Per Share (RMB) | 0.39 | 0.20 | | Diluted Earnings Per Share (RMB) | 0.38 | 0.20 | [Interim Condensed Consolidated Statement of Financial Position](index=21&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the consolidated statement of financial position reports total assets of **RMB 3.89 billion**, total liabilities of **RMB 1.76 billion**, and total equity of **RMB 2.13 billion** | Metric | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 858,440 | 767,897 | | Total Current Assets | 3,031,268 | 2,815,091 | | **Total Assets** | **3,889,708** | **3,582,988** | | Total Current Liabilities | 1,319,181 | 1,498,147 | | Total Non-current Liabilities | 439,911 | 429,956 | | **Total Liabilities** | **1,759,092** | **1,928,103** | | **Total Equity** | **2,130,616** | **1,654,885** | [Interim Condensed Consolidated Statement of Changes in Equity](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2025, total equity increased from **RMB 1.66 billion** to **RMB 2.13 billion**, with equity attributable to equity holders rising from **RMB 1.54 billion** to **RMB 2.00 billion**, influenced by profit and share-based payments | Metric | 2025 January 1 (RMB thousand) | 2025 June 30 (RMB thousand) | | :--- | :--- | :--- | | Equity Attributable to Equity Holders of the Company | 1,541,123 | 1,998,443 | | Non-controlling Interests | 113,762 | 132,173 | | **Total Equity** | **1,654,885** | **2,130,616** | - Profit attributable to equity holders of the company was **RMB 489,283 thousand**, share-based payment expenses were **RMB 122,132 thousand**, and repurchase of own shares was **RMB (160,305) thousand**[69](index=69&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=25&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash inflow from operating activities significantly increased to **RMB 539 million**, with cash and cash equivalents reaching **RMB 2.22 billion** at period-end, despite net cash outflows from investing and financing activities | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 539,376 | 358,718 | | Net Cash Outflow from Investing Activities | (36,674) | (119,126) | | Net Cash Outflow from Financing Activities | (329,625) | (134,230) | | Cash and Cash Equivalents at End of Period | 2,215,699 | 1,489,113 | - Net cash outflow from financing activities primarily included repurchase of own shares of **RMB (160,305) thousand** and payments to non-controlling interests of **RMB (157,178) thousand**[70](index=70&type=chunk) Notes to Unaudited Interim Financial Information [General Information](index=26&type=section&id=General%20Information) Babypig Technology Co., Ltd., an investment holding company incorporated in Cayman Islands in 2018, primarily engages in social and innovation businesses, and acquired full ownership of NBT Social Networking Inc. in December 2024 - Babypig Technology Co., Ltd. was incorporated in the Cayman Islands on September 12, 2018, primarily engaging in social and innovation businesses[71](index=71&type=chunk) - In December 2024, the company completed the acquisition of a **38.92%** non-controlling interest in NBT Social Networking Inc., making it a wholly-owned subsidiary of the company[73](index=73&type=chunk) [Basis of Preparation and Accounting Policy Changes](index=26&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policy%20Changes) The interim financial information is prepared according to HKEX Listing Rules and IAS 34, reviewed by KPMG, and reflects no material impact from IAS 21 amendments, with no new standards adopted - This interim financial information is prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and IAS 34 "Interim Financial Reporting" issued by the IASB[74](index=74&type=chunk) - The interim financial information is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[74](index=74&type=chunk) - The Group has applied the IAS 21 amendments to the interim financial report for the current accounting period, but it has no material impact on this interim report[75](index=75&type=chunk) [Segment Information](index=27&type=section&id=Segment%20Information) The Group's business activities are reviewed by key operating decision-makers and segmented into social and innovation businesses, with performance assessed based on gross profit - The Group's business activities are regularly reviewed and assessed by the chief operating decision-maker, and are divided into social business and innovation business segments based on revenue sources[77](index=77&type=chunk) - The chief operating decision-maker assesses the performance of operating segments based on gross profit[77](index=77&type=chunk) | Business Segment | Revenue (RMB thousand) | Cost of Revenue (RMB thousand) | Gross Profit (RMB thousand) | | :--- | :--- | :--- | :--- | | Social Business | 2,834,334 | (1,314,897) | 1,519,437 | | Innovation Business | 346,931 | (91,248) | 255,683 | [Expenses by Nature](index=28&type=section&id=Expenses%20by%20Nature) In H1 2025, total expenses reached **RMB 2.70 billion**, with significant increases in promotion and marketing, revenue sharing, employee benefits, and share-based payment expenses | Expense Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Promotion and Marketing Expenses | 941,615 | 439,475 | | Live Streamer and Channel Revenue Sharing | 903,660 | 787,258 | | Employee Benefit Expenses | 471,118 | 389,165 | | Share-based Payment Expenses | 122,959 | 33,377 | | **Total** | **2,697,215** | **1,882,213** | [Income Tax Credit](index=29&type=section&id=Income%20Tax%20Credit) In H1 2025, the company recorded an income tax credit of **RMB 0.4 million**, primarily comprising current tax of **RMB 2.89 million** and deferred tax changes of **RMB (3.33) million** | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 2,889 | 915 | | Deferred Income Tax | (3,329) | (3,856) | | **Income Tax Credit** | **(440)** | **(2,941)** | [Earnings Per Share](index=29&type=section&id=Earnings%20Per%20Share) In H1 2025, basic earnings per share significantly increased to **RMB 0.39**, and diluted earnings per share to **RMB 0.38**, reflecting improved profitability | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings Per Share | 0.39 | 0.20 | | Diluted Earnings Per Share | 0.38 | 0.20 | - Basic earnings per share are calculated based on profit attributable to equity holders of the company of **RMB 489,283,000** divided by the weighted average number of ordinary shares outstanding during the period of **1,267,962,302** shares[81](index=81&type=chunk) - Diluted earnings per share are calculated by dividing the profit attributable to owners of the company of **RMB 489,283,000** by the weighted average number of ordinary shares outstanding during the period of **1,305,767,865** shares, assuming the exercise of all potentially dilutive ordinary shares[83](index=83&type=chunk) [Dividends](index=29&type=section&id=Dividends) No dividends were paid or declared by the company for the six months ended June 30, 2025, consistent with the prior corresponding period - For the six months ended June 30, 2025, the company did not pay or declare any dividends (for the six months ended June 30, 2024: nil)[84](index=84&type=chunk) [Trade Receivables](index=30&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables increased to **RMB 409 million**, with the majority (**RMB 413 million**) being less than 6 months old, and an impairment provision of **RMB 51.95 million** | Aging | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 412,514 | 341,833 | | 6 months to 1 year | 5,466 | 1,179 | | 1 to 2 years | 1,670 | 10,393 | | 2 to 3 years | 3,954 | 3,823 | | Over 3 years | 36,870 | 34,041 | | Gross Carrying Amount | 460,474 | 391,269 | | Less: Impairment Provision | (51,948) | (49,370) | | **Total Trade Receivables** | **408,526** | **341,899** | [Trade Payables](index=30&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables increased to **RMB 424 million**, with the vast majority (**RMB 416 million**) due within one year, and typically settled within that period | Aging | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 415,944 | 373,081 | | 1 to 2 years | 94 | 741 | | Over 2 years | 8,265 | 8,735 | | **Total** | **424,303** | **382,557** | - Trade payables are normally settled within one year[86](index=86&type=chunk) Definitions and Acknowledgement [Definitions](index=31&type=section&id=Definitions) This section provides definitions for key terms used in the announcement, such as AIGC, ARPU, and IFRS, ensuring consistent understanding for readers - Provides the meanings of key terms such as AIGC, ARPU, and International Financial Reporting Standards[87](index=87&type=chunk)[88](index=88&type=chunk) [Acknowledgement](index=33&type=section&id=Acknowledgement) Chairman Liu Chunhe extends gratitude to the Group's management, employees, regulators, shareholders, and customers for their contributions and support, with a forward-looking statement disclaimer - Chairman Liu Chunhe, on behalf of the Board, extends gratitude to the Group's management and employees, regulatory bodies, shareholders, and customers[89](index=89&type=chunk) - This announcement contains forward-looking statements regarding the Group's business outlook, financial performance estimates, projected business plans, and development strategies, with a caution that such statements involve numerous risks and uncertainties[90](index=90&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group achieved significant revenue growth in H1 2025, primarily driven by increased sales of interventional medical devices and agency business, leading to profit growth despite a lower gross margin, while EPS slightly decreased and no interim dividend was declared 2025 H1 Key Financial Data Comparison (RMB thousands) | Indicator | 2025 H1 | 2024 H1 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 461,075 | 392,322 | 17.52% | | Gross Profit | 270,661 | 246,768 | 9.68% | | Profit for the Period | 102,436 | 99,178 | 3.29% | | Basic EPS (RMB) | 0.57 | 0.58 | -1.72% | | Diluted EPS (RMB) | 0.57 | 0.58 | -1.72% | - Revenue growth primarily due to increased sales of interventional medical devices (growth of **13.57%** to **RMB 392.37 million**) and agency business (growth of **118.69%** to **RMB 32.41 million**)[4](index=4&type=chunk) - Gross margin decreased from **62.90%** to **58.70%**, mainly due to increased sales of lower-margin agency business[4](index=4&type=chunk) - The Board resolved not to declare any interim dividend for the reporting period[4](index=4&type=chunk) [Consolidated Statement of Profit or Loss](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the unaudited consolidated statement of profit or loss for the six months ended June 30, 2025, detailing key financial metrics such as revenue, cost of sales, gross profit, various expenses, and profit for the period, with comparative figures for the prior year Key Data from Consolidated Statement of Profit or Loss (RMB thousands) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue | 461,075 | 392,322 | | Cost of sales | (190,414) | (145,554) | | Gross profit | 270,661 | 246,768 | | Other income | 30,468 | 23,941 | | Operating profit | 124,207 | 111,781 | | Profit before tax | 120,707 | 110,749 | | Income tax | (18,271) | (11,571) | | Profit for the period | 102,436 | 99,178 | - Profit attributable to equity holders of the Company was **RMB 98,528 thousand**, and profit attributable to non-controlling interests was **RMB 3,908 thousand**[6](index=6&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, showing the impact of profit for the period and other comprehensive income, primarily exchange differences, on total comprehensive income Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit for the period | 102,436 | 99,178 | | Exchange differences on translation of financial statements of an overseas subsidiary | (569) | 249 | | Total comprehensive income for the period | 101,867 | 99,427 | | Total comprehensive income attributable to equity holders of the Company | 97,959 | 100,787 | | Total comprehensive income attributable to non-controlling interests | 3,908 | (1,360) | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This section provides the consolidated statement of financial position as of June 30, 2025, detailing the composition of non-current assets, current assets, current liabilities, non-current liabilities, and capital and reserves, with comparative figures as of December 31, 2024 Key Data from Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total non-current assets | 2,007,781 | 1,367,748 | | Total current assets | 869,338 | 892,133 | | Total current liabilities | 695,537 | 434,456 | | Total non-current liabilities | 222,208 | 38,933 | | Net assets | 1,959,374 | 1,786,492 | | Total equity attributable to equity holders of the Company | 1,875,900 | 1,774,227 | | Non-controlling interests | 83,474 | 12,265 | - Non-current assets significantly increased, mainly due to increases in intangible assets (from **RMB 168,739 thousand** to **RMB 422,777 thousand**) and goodwill (new **RMB 306,100 thousand**), related to the acquisition of a subsidiary[10](index=10&type=chunk)[53](index=53&type=chunk) - Current liabilities substantially increased, primarily driven by growth in loans and borrowings (from **RMB 227,261 thousand** to **RMB 373,472 thousand**) and trade and other payables (from **RMB 163,740 thousand** to **RMB 205,623 thousand**)[11](index=11&type=chunk) [Notes](index=7&type=section&id=Notes) This section provides detailed notes to the interim financial report, covering the basis of preparation, changes in accounting policies, revenue and segment reporting, details of various income and expenses, income tax, earnings per share calculation, balance sheet items, and explanations for subsidiary acquisitions and capital structure changes [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared in accordance with HKAS 34 and the Listing Rules, unaudited but reviewed by KPMG - The interim financial report is prepared in accordance with **HKAS 34 "Interim Financial Reporting"** and authorized for issue[12](index=12&type=chunk) - The report is unaudited but has been reviewed by **KPMG** in accordance with **Hong Kong Standard on Review Engagements 2410**[14](index=14&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=Changes%20in%20Accounting%20Policies) The Group applied HKAS 21 (amended) "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability" in this period, but it had no material impact - The Group has applied **HKAS 21 (amended) "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability"**[15](index=15&type=chunk) - The amendment had no material impact on this interim report as the Group did not undertake foreign currency transactions where foreign currency is not exchangeable into another currency[15](index=15&type=chunk) [Revenue and Segment Reporting](index=8&type=section&id=Revenue%20and%20Segment%20Reporting) This section details the Group's revenue classification by major products and geographical locations, and provides performance reports and reconciliation information for the interventional cardiology business and other segments [Revenue Disaggregation](index=8&type=section&id=Revenue%20Disaggregation) The Group's revenue primarily comes from sales of interventional medical devices, medical standard parts, agency business, molds and others, with minor rental income, and a diversified customer base Revenue by Major Product (RMB thousands) | Product Category | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Sales of interventional medical devices | 392,366 | 345,476 | | - Cardiovascular devices | 292,478 | 268,414 | | - Neuro, peripheral and other devices | 99,888 | 77,062 | | Sales of medical standard parts | 31,412 | 26,743 | | Agency business | 32,408 | 14,818 | | Molds and others | 3,154 | 3,728 | | Rental income | 1,735 | 1,557 | | **Total revenue** | **461,075** | **392,322** | Revenue by Geographical Location (RMB thousands) | Geographical Location | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Mainland China | 341,016 | 279,623 | | Europe | 25,188 | 28,248 | | United States | 29,348 | 21,157 | | Other countries and regions | 65,523 | 63,294 | | **Total revenue** | **461,075** | **392,322** | [Segment Reporting](index=9&type=section&id=Segment%20Reporting) The Group identifies interventional cardiology as a reportable segment, with other segments combined, both showing revenue and net profit growth Segment Performance (RMB thousands) | Indicator | Interventional Cardiology (2025) | All Other (2025) | Total (2025) | Interventional Cardiology (2024) | All Other (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | External customer revenue | 392,823 | 68,252 | 461,075 | 343,842 | 48,480 | 392,322 | | Segment net profit | 91,422 | 11,297 | 102,719 | 95,487 | 6,724 | 102,211 | - External customer revenue for interventional cardiology business increased by **14.25%** year-on-year, while external customer revenue for all other segments increased by **40.78%**[24](index=24&type=chunk)[25](index=25&type=chunk) - Total segment net profit increased from **RMB 102,211 thousand** in H1 2024 to **RMB 102,719 thousand** in H1 2025[26](index=26&type=chunk) [Other Income](index=11&type=section&id=Other%20Income) The Group's other income significantly grew in the reporting period, primarily due to a substantial increase in government grants, while net gains from financial instruments and foreign exchange gains decreased Other Income Details (RMB thousands) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Government grants | 23,775 | 7,810 | | Interest income | 5,610 | 4,248 | | Realized and unrealized net gains from financial instruments measured at fair value through profit or loss | 1,941 | 8,131 | | Foreign exchange (loss)/gain | (739) | 2,029 | | Others | (119) | 1,723 | | **Total** | **30,468** | **23,941** | - Government grants are mainly for encouraging R&D projects and compensating capital expenditures for medical device production lines, with no unfulfilled conditions or contingencies during the reporting period[27](index=27&type=chunk) [Profit Before Tax](index=11&type=section&id=Profit%20Before%20Tax) This section details the items deducted from and included in profit before tax, including finance costs, depreciation and amortization, impairment losses on trade and other receivables, inventory write-down provisions, and R&D expenses Profit Before Tax Impact Items (RMB thousands) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | **Finance costs** | **2,915** | **1,032** | | - Interest on lease liabilities | 445 | 379 | | - Interest on loans and borrowings | 2,470 | 653 | | **Depreciation and amortization** | **44,426** | **42,134** | | - Property, plant and equipment | 37,553 | 38,287 | | - Right-of-use assets | 2,429 | 1,902 | | - Intangible assets | 4,444 | 1,945 | | Provision for/(reversal of) impairment losses on trade and other receivables | 239 | (652) | | Provision for inventory write-down | 1,787 | 700 | | R&D expenses (expensed) | 70,237 | 70,754 | | Total R&D costs | 91,672 | 85,931 | - Finance costs significantly increased, primarily due to higher interest on loans and borrowings[28](index=28&type=chunk) - Amortization of intangible assets substantially increased, reflecting the company's growing investment in intangible assets[28](index=28&type=chunk) [Income Tax](index=12&type=section&id=Income%20Tax) This section details the Group's income tax components, including current and deferred tax, and explains China's statutory corporate income tax rates, preferential rates for high-tech and small-profit enterprises, and additional deductions for R&D expenses, as well as Hong Kong profits tax rates Income Tax Details (RMB thousands) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Current tax | 16,536 | 10,670 | | Deferred tax | 1,735 | 901 | | **Total** | **18,271** | **11,571** | - China's statutory income tax rate is **25%**, but eligible high-tech enterprises enjoy a **15%** preferential rate, and small-profit enterprises enjoy a **5%** preferential rate[32](index=32&type=chunk)[33](index=33&type=chunk) - Qualified R&D expenses are **100%** additionally deductible from taxable income[32](index=32&type=chunk) [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) This section details the calculation methods for basic and diluted earnings per share, including adjusted profit attributable to equity holders and weighted average number of ordinary shares used Basic Earnings Per Share Calculation (RMB thousands/thousand shares) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Adjusted profit attributable to equity holders | 92,875 | 94,783 | | Weighted average number of ordinary shares | 164,307 | 164,707 | | Basic EPS (RMB) | 0.57 | 0.58 | Diluted Earnings Per Share Calculation (RMB thousands/thousand shares) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Adjusted profit attributable to equity holders (diluted) | 96,550 | 97,660 | | Weighted average number of ordinary shares for diluted EPS | 170,807 | 169,707 | | Diluted EPS (RMB) | 0.57 | 0.58 | [Inventories](index=15&type=section&id=Inventories) This section lists the composition of inventories as of June 30, 2025, including raw materials, work-in-progress, finished goods, and goods in transit, and discloses inventory write-down provisions recognized during the period Inventory Composition (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | 94,839 | 71,310 | | Work-in-progress | 35,972 | 27,039 | | Finished goods | 64,189 | 63,204 | | Goods in transit | 2,456 | 786 | | **Total** | **197,456** | **162,339** | - For the six months ended June 30, 2025, an inventory write-down provision of **RMB 1.8 million** was recognized, an increase from **RMB 0.7 million** in the prior period[38](index=38&type=chunk) [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) This section details the composition of trade and other receivables, including amounts due from third parties, related parties, investment deposits, government subsidies receivable, and other receivables, and provides an aging analysis of trade receivables Trade and Other Receivables, Net (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables, net | 85,861 | 115,073 | | Investment deposits | 14,201 | 496 | | Government subsidies receivable | 6,270 | – | | Other deposits and receivables | 17,910 | 3,357 | | Loss allowance for other receivables | (46) | (45) | | **Trade and other receivables, net** | **124,196** | **118,881** | Aging Analysis of Trade Receivables (RMB thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 78,552 | 108,452 | | 3 to 6 months | 4,138 | 5,769 | | 6 to 9 months | 3,171 | 852 | | **Total** | **85,861** | **115,073** | [Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) This section discloses the Group's financial assets at fair value through profit or loss, including non-current unlisted units in investment funds and unlisted equity investments, and current structured bank deposits, primarily in the life sciences and healthcare industry Financial Assets at Fair Value Through Profit or Loss (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current portion** | **267,582** | **158,615** | | - Unlisted units in investment funds | 260,582 | 151,615 | | - Unlisted equity investments | 7,000 | 7,000 | | **Current portion** | **–** | **30,000** | | - Structured bank deposits | – | 30,000 | - Non-current financial assets are primarily invested in unlisted funds and a private Chinese entity, mainly for or further investment in the life sciences and healthcare industry[42](index=42&type=chunk) [Cash and Cash Equivalents, Time Deposits and Restricted Bank Deposits](index=17&type=section&id=Cash%20and%20Cash%20Equivalents%2C%20Time%20Deposits%20and%20Restricted%20Bank%20Deposits) This section lists the Group's period-end balances of cash and cash equivalents, time deposits, and restricted bank deposits, and explains the composition of bank cash and China's foreign exchange control regulations Cash and Deposits Details (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | **480,212** | **521,954** | | - Bank balances | 480,163 | 521,928 | | - Cash on hand | 49 | 26 | | **Time deposits and pledged deposits (current)** | **10,641** | **2,560** | | - Time deposits | 10,641 | – | | - Restricted bank deposits | – | 2,560 | | **Time deposits (non-current)** | **10,216** | **40,106** | - Bank balances include deposits with banks in China with original maturities of less than three months, and outward remittances from Mainland China are subject to foreign exchange control regulations[44](index=44&type=chunk) - Non-current time deposits have a fixed return rate of **2.4%** and a term of three years from the issue date[46](index=46&type=chunk) [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) This section lists the composition of the Group's trade and other payables, including trade payables, salaries payable, payables for property/plant/equipment purchases, amounts due to related parties, rebate liabilities, and other payables, and provides an aging analysis of trade payables Total Trade and Other Payables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 77,868 | 44,229 | | Salaries payable | 45,478 | 45,909 | | Payables for purchase of property, plant and equipment | 23,779 | 29,186 | | Amounts due to related parties | 407 | 86 | | Rebate liabilities | 9,452 | 6,962 | | Others | 48,639 | 37,368 | | **Total** | **205,623** | **163,740** | Aging Analysis of Trade Payables (RMB thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 60,898 | 39,618 | | 3 to 6 months | 2,507 | 2,739 | | 6 months to 1 year | 6,353 | 98 | | Over 1 year | 8,110 | 1,774 | | **Total** | **77,868** | **44,229** | [Loans and Borrowings](index=19&type=section&id=Loans%20and%20Borrowings) This section discloses the Group's total bank loans and their repayment schedule analysis, including amounts, interest rates, and collateral for unsecured and secured bank loans Bank Loan Details (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unsecured bank loans | 283,359 | 217,249 | | Secured bank loans | 255,577 | 10,012 | | **Total** | **538,936** | **227,261** | Bank Loan Repayment Schedule (RMB thousands) | Repayment Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year or on demand | 373,472 | 227,261 | | After 1 year but within 2 years | 41,366 | – | | After 2 years but within 5 years | 93,074 | – | | After 5 years | 31,024 | – | | **Total** | **538,936** | **227,261** | - Of the secured bank loans, **RMB 206.8 million** is collateralized by the Company's equity interest in Hangzhou Weiqiang Medical Technology Co Ltd, with an annual interest rate of **2.70%**[49](index=49&type=chunk) [Acquisition of a Subsidiary](index=20&type=section&id=Acquisition%20of%20a%20Subsidiary) This section details the Company's acquisition of a controlling interest in Hangzhou Weiqiang Medical Technology Co Ltd, including the acquisition agreement, consideration, assets and liabilities recognized at acquisition date, and resulting goodwill - The Company and Chenyue Weixin entered into a formal acquisition agreement on **May 21, 2025**, to acquire a total of **81.83%** equity interest in Hangzhou Weiqiang for a total consideration of approximately **RMB 512.8 million**[51](index=51&type=chunk) - The Company will acquire a **51.70%** controlling interest in Hangzhou Weiqiang for a consideration of approximately **RMB 324.0 million**[51](index=51&type=chunk) Assets and Liabilities Recognized on Acquisition of Hangzhou Weiqiang (RMB thousands) | Item | Amount Recognized on Acquisition Date | | :--- | :--- | | Property, plant and equipment | 18,208 | | Intangible assets | 236,132 | | Right-of-use assets | 15,398 | | Trade and other receivables | 7,988 | | Inventories | 38,538 | | Cash and cash equivalents | 12,770 | | Other current assets | 4,261 | | Trade and other payables | (134,634) | | Loans and borrowings | (122,080) | | Contract liabilities | (11,058) | | Lease liabilities | (17,610) | | Deferred tax liabilities | (13,211) | | **Total identifiable net assets** | **34,702** | | **Goodwill** | **306,100** | | **Total consideration** | **340,802** | - Goodwill is primarily attributable to Hangzhou Weiqiang's human skills, technical talent, and synergies from integration with the Group's existing vascular interventional business[54](index=54&type=chunk) [Capital, Reserves and Dividends](index=22&type=section&id=Capital%2C%20Reserves%20and%20Dividends) This section details the Company's share capital composition, share repurchases, dividend policy, and non-controlling interests' capital contributions [Share Capital](index=22&type=section&id=Share%20Capital) As of June 30, 2025, the Company had 176,000 thousand issued and fully paid ordinary shares, including domestic and H shares, consistent with year-end 2024 Issued and Fully Paid Ordinary Shares (thousand shares/RMB thousands) | Item | June 30, 2025 (thousand shares) | June 30, 2025 (RMB thousands) | December 31, 2024 (thousand shares) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Issued at beginning/end of period/year | 176,000 | 176,000 | 171,000 | 171,000 | | Shares issued during period/year | – | – | 5,000 | 5,000 | | **Total ordinary shares issued at end of period/year** | **176,000** | **176,000** | **176,000** | **176,000** | | - Domestic shares issued | 71,787 | 71,787 | 71,787 | 71,787 | | - H shares issued | 104,213 | 104,213 | 104,213 | 104,213 | [Repurchase of Own Shares](index=23&type=section&id=Repurchase%20of%20Own%20Shares) The Company did not repurchase shares on the HKEX for the six months ended June 30, 2025, but repurchased 800,000 H shares in 2024 - For the six months ended June 30, 2025, the Company did not repurchase any shares on the **HKEX**[56](index=56&type=chunk) 2024 Share Repurchase Details | Year/Month | Number of Shares Repurchased | Highest Price Per Share (HKD) | Lowest Price Per Share (HKD) | Total Price Paid (HKD thousands) | Total Price Paid (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | 2024 April | 800,000 | 26.00 | 26.00 | 20,875 | 18,919 | [Dividends](index=23&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, but a final dividend of RMB 0.27 per share was paid in 2024 - The Board does not recommend the payment of an interim dividend for the six months ended **June 30, 2025**[56](index=56&type=chunk) - In **2024**, a final cash dividend of **RMB 0.27** per share, totaling **RMB 47.5 million**, was paid for the year ended **December 31, 2023**, as approved by shareholders[60](index=60&type=chunk) [Capital Contribution from Non-Controlling Interests](index=24&type=section&id=Capital%20Contribution%20from%20Non-Controlling%20Interests) The Company and Chenyue Weixin contributed capital to Hangzhou Weiqiang in June 2025, holding approximately 53.84% and 31.37% equity respectively, and Lingfeng Investment contributed RMB 4.0 million to Zhuhai Purui - The Company and Chenyue Weixin contributed **RMB 94.8 million** and **RMB 55.2 million** respectively to Hangzhou Weiqiang, after which the Company holds approximately **53.84%** equity interest in Hangzhou Weiqiang[61](index=61&type=chunk) - Lingfeng Investment contributed **RMB 4.0 million** to Zhuhai Purui Intelligent Manufacturing Co Ltd[61](index=61&type=chunk) [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's detailed discussion and analysis of the Group's operating results and financial position for the first half, covering business overview, operational review, financial performance, liquidity, capital resources, use of proceeds, employees, investments, acquisitions, risk management, and corporate governance [Business Overview](index=25&type=section&id=Business%20Overview) The Group is a leading Chinese interventional medical device manufacturer with a complete industry chain, benefiting from healthcare reforms, achieving revenue growth, expanding product registrations, enhancing R&D, and broadening its distribution network - The Group is a leading interventional medical device manufacturer in China, possessing a complete industry chain covering mold and equipment design and development, product injection molding, assembly, packaging, and sterilization[62](index=62&type=chunk) - The Chinese government is deepening healthcare security system reforms and promoting DRG/DIP payment reforms; the Company, with its comprehensive medical device registration certificates, strong R&D capabilities, and leading brand marketing system, holds a competitive advantage[63](index=63&type=chunk) - Revenue for the reporting period was approximately **RMB 461.08 million**, a year-on-year increase of **17.52%**, primarily due to a **13.57%** increase in interventional medical device sales and a **118.69%** increase in agency business sales[64](index=64&type=chunk)[65](index=65&type=chunk) - As of **June 30, 2025**, the Group holds **43 NMPA Class III medical device registration certificates**, **68 provincial/municipal NMPA Class II medical device registration certificates**, **27 CE certifications**, and **25 FDA approvals**[66](index=66&type=chunk) - As of **June 30, 2025**, the Group holds **657 registered patents**, **281 pending patent applications**, and **28 registered software copyrights**[67](index=67&type=chunk) - The distribution network covers **23 provinces, 4 municipalities, and 5 autonomous regions** in China, reaching **3,735 domestic hospitals**, and serves **313 overseas customers** across **91 countries and regions**[68](index=68&type=chunk) [Review of Activities](index=27&type=section&id=Review%20of%20Activities) This section reviews key operating activities during the reporting period, including an increase in subsidiaries, establishment of new joint ventures, re-election and appointment of directors and supervisors, and the acquisition and subsequent capital contribution for a controlling interest in a target company [Subsidiaries](index=27&type=section&id=Subsidiaries) As of June 30, 2025, the Group owned 24 wholly-owned or controlled subsidiaries, an increase from 19 at year-end 2024, focusing on design and development of interventional/implantable medical devices - As of **June 30, 2025**, the Group owned **24** wholly-owned or controlled subsidiaries, an increase from **19** as of **December 31, 2024**[69](index=69&type=chunk) - Subsidiaries focus on the design and development of interventional/implantable medical devices for cardiovascular, neurological, peripheral, ENT, urological, and other fields, as well as related production equipment and molds[69](index=69&type=chunk) [Establishment of Joint Ventures](index=27&type=section&id=Establishment%20of%20Joint%20Ventures) The Group established Shanghai Yingtai Investment Management Co Ltd and Shanghai Yingtai Shenghuo Trading Co Ltd, and invested RMB 100.0 million as a limited partner in Chenyao Xinchen Fund - The Company established **Shanghai Yingtai Investment Management Co Ltd** and **Shanghai Yingtai Shenghuo Trading Co Ltd** with related parties, constituting connected transactions but exempted from circular and independent shareholders' approval requirements[70](index=70&type=chunk) - The Company invested **RMB 100.0 million** as a limited partner in **Chenyao Xinchen Fund**, constituting a discloseable transaction but exempted from shareholders' approval requirements[71](index=71&type=chunk) [Re-election and Appointment of Directors and Supervisors](index=28&type=section&id=Re-election%20and%20Appointment%20of%20Directors%20and%20Supervisors) The Company held its AGM on May 23, 2025, re-electing and appointing members of the fourth Board of Directors (including executive, non-executive, and independent non-executive directors) and the Supervisory Committee - Dr. Liang Dongke and Mr. Lin Sen were re-elected as executive directors; Dr. Song Yuan, Mr. Wang Ruiqin, and Ms. Chen Hongqin were re-elected as non-executive directors; Mr. Zhang Hong was appointed as a non-executive director; Mr. Jian Xigao, Mr. Xu Hongqun, and Mr. Xu Congli were re-elected as independent non-executive directors[72](index=72&type=chunk) - Ms. Chen Jie was re-elected as employee representative supervisor, and Ms. Ma Huifang and Mr. Shen Xiaoru were re-elected as shareholder representative supervisors[73](index=73&type=chunk) [Acquisition of Controlling Interest in Target Company](index=29&type=section&id=Acquisition%20of%20Controlling%20Interest%20in%20Target%20Company) The Company completed the acquisition of a 51.70% equity interest in Hangzhou Weiqiang Medical Technology Co Ltd on May 21, 2025, making it a non-wholly owned subsidiary, and subsequently made further capital contributions, now holding approximately 53.84% - The Company completed the acquisition of a **51.70%** equity interest in **Hangzhou Weiqiang Medical Technology Co Ltd** on **May 21, 2025**, for a consideration of approximately **RMB 324.04 million**[74](index=74&type=chunk) - Following the acquisition, Hangzhou Weiqiang became a non-wholly owned subsidiary of the Company, with the Company entitled to appoint **three of its five board directors**; further capital contributions increased the Company's equity interest to approximately **53.84%** as of the announcement date[74](index=74&type=chunk)[75](index=75&type=chunk) [Outlook](index=30&type=section&id=Outlook) For H2 2025, the Group plans to combine M&A with organic growth for synergistic development, expand product pipelines, increase R&D investment, accelerate core product development and new product approvals, broaden market reach, enhance market share and brand value, and further leverage automation and scaled production potential - Combine **external M&A** with **organic growth** to promote synergistic development across the Group's businesses and achieve high-quality sustainable growth[76](index=76&type=chunk) - Continue to **expand product pipelines**, **increase R&D investment**, and accelerate the development of core products and approval of new products[76](index=76&type=chunk) - Comprehensively **expand market footprint**, increase product market share, and strengthen brand building[76](index=76&type=chunk) - Leverage R&D centers to deeply explore the potential for **automation** and **scaled production**, laying a solid foundation for efficient production[76](index=76&type=chunk) [Financial Review](index=30&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance during the reporting period, including changes in revenue, cost of sales, gross profit and margin, other income, finance costs, distribution costs, administrative expenses, R&D expenses, income tax expense, and profit for the period, along with their main reasons [Revenue](index=30&type=section&id=Revenue) Revenue for the reporting period was approximately RMB 461.08 million, a 17.52% year-on-year increase, primarily due to a 13.57% increase in interventional medical device sales and a 118.69% increase in agency business sales - The Group's revenue for the reporting period was approximately **RMB 461.08 million**, an increase of **17.52%** compared to the same period last year[77](index=77&type=chunk) - Interventional medical device revenue increased by **13.57%** to **RMB 392.37 million**, and agency business revenue increased by **118.69%** to **RMB 32.41 million**[77](index=77&type=chunk) [Cost of Sales](index=31&type=section&id=Cost%20of%20Sales) Cost of sales for the reporting period was approximately RMB 190.41 million, a 30.82% year-on-year increase, primarily related to revenue growth - Cost of sales was approximately **RMB 190.41 million**, an increase of **30.82%** or approximately **RMB 44.86 million** compared to the same period last year[78](index=78&type=chunk) [Gross Profit and Gross Margin](index=31&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit for the reporting period was approximately RMB 270.66 million, a 9.68% year-on-year increase, but gross margin decreased from 62.90% to 58.70% due to increased sales of lower-margin agency business - Gross profit was approximately **RMB 270.66 million**, an increase compared to **RMB 246.77 million** in the same period last year[79](index=79&type=chunk) - Gross margin decreased from **62.90%** to **58.70%**, mainly due to increased sales of lower-margin agency business[79](index=79&type=chunk) [Other Income](index=31&type=section&id=Other%20Income) Other income for the reporting period was approximately RMB 30.47 million, a 27.28% year-on-year increase, primarily driven by increased government grants - Other income was approximately **RMB 30.47 million**, an increase of **27.28%** or approximately **RMB 6.53 million** compared to the same period last year[80](index=80&type=chunk) - The increase was primarily due to increased **government grants**[80](index=80&type=chunk) [Finance Costs](index=31&type=section&id=Finance%20Costs) Finance costs for the reporting period were approximately RMB 2.92 million, a significant increase from RMB 1.03 million in the prior period, mainly due to interest from bank loans and lease liabilities - Finance costs were approximately **RMB 2.92 million**, a significant increase compared to **RMB 1.03 million** in the same period last year[81](index=81&type=chunk) - Finance costs primarily consisted of interest generated from **bank loans** and **lease liabilities**[81](index=81&type=chunk) [Distribution Costs](index=31&type=section&id=Distribution%20Costs) Distribution costs for the reporting period were approximately RMB 41.53 million, a 23.56% year-on-year increase, with its proportion to total revenue rising from 8.57% to 9.01% - Distribution costs were approximately **RMB 41.53 million**, an increase of **23.56%** or approximately **RMB 7.92 million** compared to the same period last year[82](index=82&type=chunk) - Distribution costs as a percentage of total revenue increased from **8.57%** in the same period last year to **9.01%**[82](index=82&type=chunk) [Administrative Expenses](index=32&type=section&id=Administrative%20Expenses) Administrative expenses for the reporting period were approximately RMB 64.92 million, a 17.57% year-on-year increase, mainly due to depreciation, amortization, and additional taxes for the Shandong Yingtai Innovation Medical Device Industrial Park - Administrative expenses were approximately **RMB 64.92 million**, an increase of **17.57%** or approximately **RMB 9.70 million** compared to the same period last year[83](index=83&type=chunk) - The increase was due to **depreciation, amortization, and additional taxes** for the Shandong Yingtai Innovation Medical Device Industrial Park[83](index=83&type=chunk) [Research and Development Expenses](index=32&type=section&id=Research%20and%20Development%20Expenses) Total R&D expenses for the reporting period were approximately RMB 91.67 million, with expensed R&D expenses of approximately RMB 70.24 million and capitalized R&D expenses of approximately RMB 21.44 million - Total R&D expenses were approximately **RMB 91.67 million**, an increase compared to **RMB 85.93 million** in the same period last year[84](index=84&type=chunk) - Expensed R&D expenses were approximately **RMB 70.24 million**, and capitalized R&D expenses were approximately **RMB 21.44 million**[84](index=84&type=chunk) [Income Tax Expense](index=32&type=section&id=Income%20Tax%20Expense) Income tax expense for the reporting period was approximately RMB 18.27 million, a 57.91% year-on-year increase, with the effective income tax rate rising from 10.45% to 15.14% due to increased income tax from a related subsidiary - Income tax expense was approximately **RMB 18.27 million**, an increase of **57.91%** or approximately **RMB 6.70 million** compared to the same period last year[85](index=85&type=chunk) - The effective income tax rate increased from **10.45%** to **15.14%**, primarily due to increased income tax (at a **25%** rate) from a related subsidiary[85](index=85&type=chunk) [Profit for the Period](index=32&type=section&id=Profit%20for%20the%20Period) The Group's profit for the reporting period was approximately RMB 102.44 million, a 3.29% year-on-year increase - The Group's profit for the reporting period was approximately **RMB 102.44 million**, an increase of **3.29%** compared to the same period last year[86](index=86&type=chunk) [Liquidity and Financial Resources](index=33&type=section&id=Liquidity%20and%20Financial%20Resources) This section outlines the Group's liquidity and financial resources, including cash and cash equivalents, net cash flow from operating activities, current assets and liabilities, and current ratio, and analyzes changes in borrowings and gearing ratio [Liquidity and Financial Resources](index=33&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintained a sound financial position with increased net cash flow from operating activities, but the current ratio decreased from 2.05 to 1.25 due to increased bank loans - As of **June 30, 2025**, cash and cash equivalents were approximately **RMB 480.21 million** (December 31, 2024: **RMB 521.95 million**)[87](index=87&type=chunk) - Net cash flow from operating activities was approximately **RMB 122.66 million**, an increase compared to **RMB 104.82 million** in the same period last year[87](index=87&type=chunk) - The current ratio decreased from approximately **2.05** as of **December 31, 2024**, to approximately **1.25** as of **June 30, 2025**, mainly due to increased bank loans[87](index=87&type=chunk) [Borrowings and Gearing Ratio](index=33&type=section&id=Borrowings%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's bank borrowings were approximately RMB 538.94 million, and the gearing ratio increased from 13.64% at year-end 2024 to 29.08% - As of **June 30, 2025**, the Group's loans borrowed from banks were approximately **RMB 538.94 million**[88](index=88&type=chunk) - The gearing ratio (loans and borrowings plus lease liabilities divided by total equity) was **29.08%**, a significant increase from **13.64%** as of **December 31, 2024**[88](index=88&type=chunk) [Capital Structure](index=33&type=section&id=Capital%20Structure) As of June 30, 2025, total equity attributable to equity holders of the Company was approximately RMB 1,875.90 million, an increase from year-end 2024 - As of **June 30, 2025**, total equity attributable to equity holders of the Company was approximately **RMB 1,875.90 million**, compared to approximately **RMB 1,774.23 million** as of **December 31, 2024**[89](index=89&type=chunk) [Interim Dividend](index=33&type=section&id=Interim%20Dividend) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended **June 30, 2025**[90](index=90&type=chunk) [Use of Proceeds from Global Offering](index=34&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) This section details the allocation and use of proceeds from the Company's global offering; as of June 30, 2025, most funds were utilized, with remaining unutilized funds primarily for the Shandong Yingtai Innovation Medical Device Industrial Park construction - Net proceeds from the global offering were approximately **RMB 797.62 million**, of which approximately **RMB 786.46 million** had been utilized as of **June 30, 2025**[91](index=91&type=chunk) Use of Proceeds from Global Offering (RMB millions) | Purpose | Revised Allocation | Utilized as of June 30, 2025 | Unutilized as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Construction of Shanghai Jiading R&D Center and production facilities | 328.38 | 328.38 | – | | Purchase of production equipment and automated production lines | 110.07 | 110.07 | – | | Expansion of distribution network and marketing | 13.00 | 13.00 | – | | General corporate purposes and working capital | 79.84 | 79.84 | – | | Construction of Zhuhai Derui new factory project | 110.00 | 110.00 | – | | Construction of Shandong Yingtai Innovation Medical Device Industrial Park | 156.33 | 145.17 | 11.16 | | **Total** | **797.62** | **786.46** | **11.16** | - Unutilized net proceeds of approximately **RMB 11.16 million** are primarily for the remaining payment of the Shandong Yingtai Innovation Medical Device Industrial Park construction project, expected to be paid by **end of 2025**[93](index=93&type=chunk) [Employees' Remuneration and Relationships](index=35&type=section&id=Employees'%20Remuneration%20and%20Relationships) As of June 30, 2025, the Group had 2,007 employees, with total employee costs of approximately RMB 167.82 million, offering competitive compensation, share schemes, and training to attract and retain talent - As of **June 30, 2025**, the Group had **2,007 employees**, an increase from **1,735** as of **December 31, 2024**[94](index=94&type=chunk) - Total employee costs for the reporting period were approximately **RMB 167.82 million**, an increase compared to **RMB 147.92 million** in the same period last year[94](index=94&type=chunk) - The Group has adopted **three share schemes** (Share Incentive Scheme, 2023 Equity Incentive Scheme, and H Share Award and Trust Scheme) to incentivize and retain employees[94](index=94&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, the trustee of the H Share Award and Trust Scheme did not repurchase H shares, the Company held no treasury shares, and no other listed securities were purchased, sold, or redeemed - During the reporting period, the trustee of the **H Share Award and Trust Scheme** did not repurchase any H shares[95](index=95&type=chunk) - As of **June 30, 2025**, the Company did not hold any treasury shares[96](index=96&type=chunk) [Investments or Capital Assets](index=36&type=section&id=Investments%20or%20Capital%20Assets) This section discloses the Group's significant minority equity investments as of June 30, 2025, primarily in funds focused on medical devices, pharmaceuticals, biotechnology, and other life sciences and healthcare industries, aimed at promoting strategic development and enhancing competitiveness Significant Minority Equity Investments (RMB thousands) | Fund Name | Equity Percentage (%) | Investment Cost (2025) | Fair Value (2025) | Cumulative Gain (2025) | Investment Cost (2024) | Fair Value (2024) | Cumulative Gain (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ruixin Fund | 15.83 | 50,000 | 57,636 | 7,636 | 50,000 | 54,696 | 4,696 | | Yingtai Fund | 25.00 | 50,000 | 48,245 | 13,634 | 50,000 | 49,047 | 14,436 | | Chengdu Huaige Fund | 12.14 | 25,000 | 30,016 | 5,016 | 25,000 | 29,790 | 4,790 | | Hainan Renzhe Fund | 27.62 | 25,000 | 25,174 | 174 | 17,500 | 18,082 | 582 | | Chenyao Xinchen Fund | 32.26 | 100,000 | 99,511 | (489) | – | – | – | | **Total** | | **250,000** | **260,582** | **25,971** | **142,500** | **151,615** | **24,504** | - These funds primarily invest in life sciences and healthcare industries such as medical devices, pharmaceuticals, biological preparations, medical services, and biotechnology, aiming to promote the Company's strategic development, enhance competitiveness, and consolidate market position[99](index=99&type=chunk)[100](index=100&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=37&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) This section reiterates the Company's completion of the acquisition of a 51.70% equity interest in Hangzhou Weiqiang Medical Technology Co Ltd in May 2025, and subsequent further capital contributions, making it a non-wholly owned subsidiary - The Company completed the acquisition of a **51.70%** equity interest in **Hangzhou Weiqiang Medical Technology Co Ltd** in **May 2025**, for a consideration of **RMB 324 million**[102](index=102&type=chunk) - Following the acquisition, the Company held a **51.70%** equity interest in Hangzhou Weiqiang and gained control; after subsequent further capital contributions, the shareholding increased to approximately **53.84%**[103](index=103&type=chunk) [Contingent Liabilities](index=38&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - As of **June 30, 2025**, and **December 31, 2024**, the Group had no significant contingent liabilities[104](index=104&type=chunk) [Financial Instruments](index=38&type=section&id=Financial%20Instruments) As of June 30, 2025, the Group had not entered into any foreign exchange forward contracts, nor did it have any other open hedging contracts or financial derivatives - As of **June 30, 2025**, the Group had not entered into any foreign exchange forward contracts[105](index=105&type=chunk) - As of **June 30, 2025**, the Group had no other open hedging contracts or financial derivatives[105](index=105&type=chunk) [Capital Expenditure](index=38&type=section&id=Capital%20Expenditure) During the reporting period, the Group's capital expenditure for property, plant and equipment, construction in progress, intangible assets, prepaid lease payments, and deposits for property, plant and equipment totaled approximately RMB 53.84 million - During the reporting period, the Group's capital expenditure for property, plant and equipment, construction in progress, intangible assets, prepaid lease payments, and deposits for property, plant and equipment totaled approximately **RMB 53.84 million**[106](index=106&type=chunk) [Foreign Exchange Risk](index=39&type=section&id=Foreign%20Exchange%20Risk) The Group's operations are primarily in China, with assets, liabilities, and transactions denominated in RMB, and overseas assets and transactions mainly in USD; the Board believes there is no significant foreign exchange risk currently and has no formal hedging policy, but will monitor and consider future hedging - The Group's domestic assets, liabilities, and transactions in China are denominated in **RMB**, while overseas assets and transactions are primarily denominated in **USD**[107](index=107&type=chunk) - The Directors believe the Group currently has no significant foreign exchange risk, thus no formal hedging or policy was implemented during the reporting period[107](index=107&type=chunk) [Pledged Group Assets](index=39&type=section&id=Pledged%20Group%20Assets) As of June 30, 2025, the Group obtained secured bank loans of RMB 206.8 million by pledging the Company's equity interest in Hangzhou Weiqiang - As of **June 30, 2025**, the Group obtained secured bank loans of **RMB 206.8 million** by pledging the Company's equity interest in **Hangzhou Weiqiang**[108](index=108&type=chunk) [Capital Commitments](index=39&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's authorized but not contracted capital commitments were approximately RMB 13.06 million, and contracted but not provided for capital commitments were approximately RMB 57.49 million Capital Commitments (RMB millions) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized but not contracted | 13.06 | 202.15 | | Contracted but not provided for | 57.49 | 89.05 | [Significant Events After Reporting Period](index=39&type=section&id=Significant%20Events%20After%20Reporting%20Period) After the reporting period, on August 6, 2025, the Company conditionally entered into a partnership agreement to establish and invest in Ningbo Huaige Guangtai Equity Investment Partnership (Limited Partnership), with a total committed capital of RMB 110.0 million - On **August 6, 2025**, the Company conditionally entered into a partnership agreement to establish and invest in **Ningbo Huaige Guangtai Equity Investment Partnership (Limited Partnership)**[110](index=110&type=chunk) - The Company will invest in **Huaige Guangtai Fund** as a limited partner, with a total committed capital of **RMB 110.0 million**, of which the first contribution is **RMB 50.0 million**[111](index=111&type=chunk) [Corporate Governance and Others](index=40&type=section&id=Corporate%20Governance%20and%20Others) This section covers the Company's corporate governance practices, including compliance with the Model Code for Securities Transactions by Directors and Supervisors, adherence to the Corporate Governance Code (with an explanation for the combined roles of Chairman and CEO), the composition and responsibilities of the Audit Committee, and information on the independent review and announcement of the interim financial report [Compliance with the Model Code for Securities Transactions by Directors and Supervisors](index=40&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The Company adopted the Model Code for securities transactions by directors and supervisors and confirmed all directors and supervisors complied with it during the reporting period - The Company has adopted the **Model Code** as set out in Appendix C3 to the Listing Rules as the code of conduct for securities transactions by its Directors and Supervisors[113](index=113&type=chunk) - All Directors and Supervisors confirmed, upon enquiry, that they have complied with the required standards set out in the **Model Code** during the reporting period[113](index=113&type=chunk) [Compliance with the Corporate Governance Code](index=40&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company complied with all code provisions of the Corporate Governance Code during the reporting period, except for the combined roles of Chairman and CEO, which the Board believes benefits group management and is balanced by strong independent board composition - The Company complied with all code provisions of the **Corporate Governance Code** as set out in Appendix C1 to the Listing Rules during the reporting period, except for code provision C.2.1[114](index=114&type=chunk) - Dr. Liang Dongke serves as both the Chairman of the Board and the General Manager (equivalent to Chief Executive Officer) of the Company; the Board believes this arrangement benefits group management, and the Board's composition (2 executive directors, 4 non-executive directors, 3 independent non-executive directors) ensures strong independence and a balance of power[114](index=114&type=chunk) [Audit Committee](index=41&type=section&id=Audit%20Committee) The Company has an Audit Committee of three members, chaired by Mr. Xu Hongqun with professional qualifications, which reviewed the unaudited interim results and discussed risk management, internal controls, and financial reporting - The Audit Committee comprises Mr. Xu Hongqun (Chairman, independent non-executive director), Mr. Xu Congli (independent non-executive director), and Dr. Song Yuan (non-executive director)[115](index=115&type=chunk) - The Audit Committee has reviewed the Company's unaudited interim results for the reporting period and confirmed compliance with applicable accounting principles, standards, and requirements, with adequate disclosures[115](index=115&type=chunk) [Independent Review of Interim Financial Report](index=41&type=section&id=Independent%20Review%20of%20Interim%20Financial%20Report) KPMG, the Company's auditor, reviewed the unaudited interim financial report in accordance with HKSRS 2410 and issued an unmodified review report - The Company's auditor, **KPMG**, has reviewed the unaudited interim financial report in accordance with **Hong Kong Standard on Review Engagements 2410**[116](index=116&type=chunk) - KPMG has issued an unmodified review report, which will be included in the interim report dispatched to shareholders[116](index=116&type=chunk) [Publication of Interim Results and Interim Report](index=41&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement has been published on the HKEX and Company websites, and the interim report will be available for shareholders and published on these websites in due course - The interim results announcement has been published on the **HKEX website (www.hkexnews.hk)** and the **Company's website (www.int-medical.com)**[117](index=117&type=chunk) - The Group's **2025 interim report** will be available for shareholders' inspection and published on the aforementioned websites in due course[117](index=117&type=chunk) [Acknowledgements](index=42&type=section&id=Acknowledgements) Dr. Liang Dongke, Chairman of the Board, expressed gratitude to all employees, management, users, and business partners, looking forward to continued support to lead the Group to new milestones - Dr. Liang Dongke, Chairman of the Board, extended sincere gratitude to all employees, management team, users, and business partners[118](index=118&type=chunk) - The Group will continue to work closely with shareholders and employees to lead the Group's development to new milestones[118](index=118&type=chunk)