```markdown Interim Results Announcement Summary [Financial Highlights](index=1&type=section&id=1.1%20%E8%B4%A2%E5%8A%A1%E4%BA%AE%E7%82%B9) In the first half of 2025, the Group achieved double-digit growth in both revenue and profit, setting a new half-year profit record, reflecting successful product commercialization and operational efficiency H1 2025 Financial Highlights | Metric | H1 2025 (million HKD) | Y-o-Y Growth | | :--- | :--- | :--- | | Revenue | 310.2 | 13.4% | | Half-Year Profit | 76.0 | 12.7% | [Product Performance Highlights](index=2&type=section&id=1.2%20%E4%BA%A7%E5%93%81%E8%A1%A8%E7%8E%B0%E4%BA%AE%E7%82%B9) Core products **Bogutai®** and **Geneptin®** performed strongly, with **Bogutai®** revenue significantly increasing and **Geneptin®** benefiting from retail channel expansion H1 2025 Key Product Revenue Growth | Product | H1 2025 Revenue (million HKD) | Y-o-Y Growth | | :--- | :--- | :--- | | Bogutai® | 65.6 | 248.9% | | Geneptin® | 107.8 | 18.1% | - **Geneptin®** growth primarily attributed to breakthroughs in retail channels in H1 **2025**, especially rapid expansion in e-commerce and chain pharmacies[2](index=2&type=chunk) [Improved Financial Position](index=3&type=section&id=1.3%20%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E6%94%B9%E5%96%84) The Group's financial position significantly improved, with enhanced liquidity, increased operational efficiency, and a healthier capital structure H1 2025 Key Financial Indicators Improvement | Metric | End of 2024 | June 30, 2025 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 2.58 times | 3.40 times | Improved | | Cash Conversion Cycle | 124 days | 79 days | Improved | | Debt-to-Equity Ratio | 58.9% | 45.2% | Decreased | [New Product Approvals and Strategic Milestones](index=3&type=section&id=1.4%20%E6%96%B0%E4%BA%A7%E5%93%81%E6%89%B9%E5%87%86%E4%B8%8E%E6%88%98%E7%95%A5%E9%87%8C%E7%A8%8B%E7%A2%91) The Group achieved significant product launch approvals in ophthalmology and antifungal therapy, strategically entering the integrated 'pharmaceuticals, medical devices, and medical aesthetics' sector - Second ophthalmic product **Genecon®** (Diquafosol Sodium Ophthalmic Solution) received **NMPA** marketing approval, expected to be among the first **BFS** Diquafosol Sodium formulations in China[3](index=3&type=chunk) - Marketing application for Isavuconazonium Sulfate Capsules accepted by **NMPA**, with approval expected in H2 **2026**, marking significant progress in the antifungal therapy field[3](index=3&type=chunk) - Officially launched **Jiyantai®** high-end series **GeneQueens™** and medical device brand **Jinyinfu®**, entering the integrated "pharmaceuticals, medical devices, and medical aesthetics" sector[3](index=3&type=chunk) [R&D Strategy Reshaping](index=3&type=section&id=1.5%20%E7%A0%94%E5%8F%91%E7%AD%96%E7%95%A5%E9%87%8D%E5%A1%91) The Group is refocusing its R&D strategy on regenerative medicine and seeking industry-academia-research collaborations to solidify its leadership in biopharmaceutical innovation - R&D strategy refocused on regenerative medicine, exploring industry-academia-research collaborations with leading Chinese research institutions[3](index=3&type=chunk) Key Financial Summary [Key Financial Indicators](index=3&type=section&id=2.1%20%E5%85%B3%E9%94%AE%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2025, the Group achieved revenue and pre-tax profit growth, despite a slight decrease in gross margin, while cash, current, and debt-to-equity ratios improved, indicating enhanced financial health H1 2025 Key Financial Indicators | Metric (thousand HKD) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 310,225 | 273,615 | +13.4% | | Gross Profit | 254,084 | 230,588 | +10.2% | | R&D Expenses (incl. capitalized) | 13,634 | 23,312 | -41.5% | | Profit Before Tax | 78,649 | 71,543 | +9.9% | | EBITDA | 92,120 | 82,734 | +11.3% | | Gross Margin (%) | 81.9% | 84.3% | -2.4pp | | R&D Expenses as % of Revenue (%) | 4.4% | 8.5% | -4.1pp | | Cash Ratio (times) | 1.69 | 0.53 | +1.16 | | Current Ratio (times) | 3.40 | 2.58 | +0.82 | | Trade Payables Turnover Days (days) | 51 | 49 | +2 | | Trade Receivables Turnover Days (days) | 46 | 34 | +12 | | Inventory Turnover Days (days) | 84 | 139 | -55 | | Debt-to-Equity Ratio (%) | 45.2% | 58.9% | -13.7pp | | Total Asset Turnover Ratio (%) | 55.8% | 106.8% | -51.0pp | [Segment Financial Data](index=4&type=section&id=2.2%20%E5%88%86%E9%83%A8%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) In the first half of 2025, biopharmaceutical sales revenue significantly increased, while chemical drug sales revenue decreased H1 2025 Financial Data by Reportable Segment | Metric (thousand HKD) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue from Sales of Listed Biopharmaceuticals and Chemical Drugs | 310,225 | 273,615 | 13.4% | | Cost of Sales | (56,141) | (43,027) | 30.5% | | Gross Profit | 254,084 | 230,588 | 10.2% | | Selling and Distribution Expenses | (131,679) | (117,046) | 12.5% | | R&D Costs | (13,634) | (20,890) | -34.7% | | Profit Before Tax | 78,649 | 71,543 | 10.0% | Management Discussion and Analysis [Market Review](index=5&type=section&id=3.1%20%E5%B8%82%E5%9C%BA%E5%9B%9E%E9%A1%B5) China's pharmaceutical market continues to grow with policy support, accelerating innovative drug approvals and world-class R&D, while the medical aesthetics market rapidly expands, providing a solid foundation for the company's development - China's pharmaceutical market size is projected to grow from **RMB 1,733.9 billion** in **2024** to **RMB 3,318.5 billion** by **2035**[7](index=7&type=chunk) - In H1 **2025**, China had **43** innovative drugs approved for launch, a **59%** year-on-year increase, almost matching the **2024** full-year total[7](index=7&type=chunk) - In H1 **2025**, **50%** of new drug molecules entering human clinical trials globally originated from China; China's innovative drug pipeline accounts for approximately one-third of the global total[8](index=8&type=chunk) - In H1 **2025**, the total value of outbound licensing deals by Chinese pharmaceutical companies reached **USD 48 billion**, representing **32%** of global drug licensing transactions[8](index=8&type=chunk) - China's medical aesthetics market reached **RMB 309.2 billion** in **2024**, growing by **16%** year-on-year, with rapid expansion in the minimally invasive sector driving demand for pre- and post-procedure care products[9](index=9&type=chunk) [Company Overview](index=6&type=section&id=3.2%20%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88) **Uni-Bioscience Group** is a fully integrated biopharmaceutical company focused on developing regenerative therapies in orthopedics, ophthalmology, dermatology, and medical aesthetics using novel synthetic biotechnology, with a full value chain platform covering R&D, production, and sales - Company focuses on utilizing novel synthetic biotechnology to develop next-generation regenerative therapies for orthopedics, ophthalmology, dermatology, and medical aesthetics[10](index=10&type=chunk) - Established a fully integrated business platform covering R&D, production, manufacturing, sales and distribution, and medical-grade skincare raw materials[10](index=10&type=chunk) - As of June **30**, **2025**, six products were on the market: **Geneptin®**, **Geneshu®**, **Pinapu®**, **Boshutai®**, **Bogutai®**, and **Jiyantai®**[10](index=10&type=chunk) [Major Achievements in H1](index=6&type=section&id=3.3%20%E4%B8%8A%E5%8D%8A%E5%B9%B4%E9%87%8D%E5%A4%A7%E6%88%90%E5%B0%B1) In H1 2025, the Group made significant product pipeline progress, strengthening its profitability and R&D-driven biopharmaceutical position, fulfilling its commitment to product diversification [Bogutai® Market Growth](index=6&type=section&id=3.3.1%20%E5%8D%9A%E5%9B%BA%E6%B3%B0%C2%AE%E5%B8%82%E5%9C%BA%E5%A2%9E%E9%95%BF) **Bogutai®** has gained increasing market recognition since its launch, achieving a significant **248.9%** revenue growth through academic promotion and channel development, substantially expanding patient coverage - **Bogutai®** revenue significantly increased by **248.9%** year-on-year, with market coverage expanded to over **120** cities nationwide[12](index=12&type=chunk)[13](index=13&type=chunk) - Accumulated over **8,000** new patients and over **6,000** returning patients, reflecting high clinical penetration and strong patient adherence[13](index=13&type=chunk) [Genecon® Approved for Launch](index=7&type=section&id=3.3.2%20%E9%87%91%E5%9B%A0%E5%BA%B7%C2%AE%E8%8E%B7%E6%89%B9%E4%B8%8A%E5%B8%82) **Genecon®** (Diquafosol Sodium Ophthalmic Solution) received **NMPA** approval, marking a key milestone for the Group's ophthalmic portfolio, expected to be among the first **BFS** Diquafosol Sodium products, ensuring market penetration through strategic partnerships and sales team expansion - **Genecon®** (Diquafosol Sodium Ophthalmic Solution) received **NMPA** marketing approval on May **21**, **2025**, as the Group's second ophthalmic drug, used to improve tear film stability and repair corneal epithelial damage in dry eye patients[14](index=14&type=chunk) - **Genecon®** is expected to be among the first **BFS** Diquafosol Sodium products approved for launch, featuring a preservative-free, single-dose packaging design[15](index=15&type=chunk) - Strategic partnerships established with **API** suppliers, and sales team expanded to integrate online and offline channel resources, covering hospitals, pharmacies, and major e-commerce platforms[15](index=15&type=chunk) [GeneQueens™ and Jinyinfu® Enter Medical Aesthetics](index=7&type=section&id=3.3.3%20GeneQueens%E2%84%A2%E5%8F%8A%E9%87%91%E5%9B%A0%E6%95%B7%C2%AE%E8%BF%9B%E5%86%9B%E5%8C%BB%E7%BE%8E) The Group officially launched **Jiyantai®** high-end series **GeneQueens™** and medical device brand **Jinyinfu®**, marking a strategic expansion into the integrated 'pharmaceuticals, medical devices, and medical aesthetics' sector, aiming to provide full-cycle skin health solutions - On June **27**, **2025**, officially launched **Jiyantai®** high-end series **GeneQueens™** and medical device brand **Jinyinfu®**, strategically entering the integrated "pharmaceuticals, medical devices, and medical aesthetics" sector[16](index=16&type=chunk) - **GeneQueens™** focuses on skin repair and anti-aging, while **Jinyinfu®** product line focuses on post-procedure recovery, utilizing high-purity, non-sensitizing formulations and advanced cooling technology[16](index=16&type=chunk) - **Jiyantai®** showcased research findings on "Efficacy of Fibronectin in Repairing Skin Barrier Damage After Medical Aesthetic Procedures" in collaboration with Southern Medical University Dermatology Hospital at **CSD2025**[17](index=17&type=chunk) [R&D and Pipeline Progress](index=8&type=section&id=3.4%20%E7%A0%94%E5%8F%91%E5%8F%8A%E7%AE%A1%E7%BA%BF%E8%BF%9B%E5%B1%95) The Group strategically upgraded its R&D focus, leveraging synthetic biotechnology as a driver for regenerative medicine innovation, concentrating on key therapeutic areas like bone, ocular, and skin regeneration, and actively advancing multiple patented biopharmaceutical developments [R&D Strategy Upgrade](index=8&type=section&id=3.4.1%20%E7%A0%94%E5%8F%91%E7%AD%96%E7%95%A5%E5%8D%87%E7%BA%A7) The Group positions synthetic biotechnology as the core driver for developing innovative regenerative medicine products, focusing on key therapeutic areas such as bone, ocular, and skin regeneration, and actively collaborating with industry and academic partners - R&D positioning upgraded, explicitly defining synthetic biotechnology as the driving force for developing innovative and patented regenerative medicine products[18](index=18&type=chunk) - Key focus on bone regeneration (e.g., **PTH**-mediated bone formation, **BMP–2**-induced osteogenesis), ocular regeneration (e.g., **EGF**-promoted corneal repair), and skin regeneration (e.g., growth factor-activated tissue repair)[18](index=18&type=chunk) - Actively collaborating with industry and academic partners to advance innovative drugs and therapies within the regenerative medicine framework[18](index=18&type=chunk) [Patented Biopharmaceutical Pipeline](index=9&type=section&id=3.4.2%20%E4%B8%93%E5%88%A9%E7%94%9F%E7%89%A9%E8%8D%AF%E5%93%81%E7%AE%A1%E7%BA%BF) The Group possesses multiple patented biopharmaceutical products at various development stages, covering bone, ocular, skin, and muscle regeneration fields Patented Biopharmaceutical Pipeline Overview | Product/Ingredient | Indication | Discovery | Pre-clinical | Phase I | Phase II | Phase III | NDA | Marketed | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Bone Regeneration** | | | | | | | | | | **Uni-PTH** (Microneedle) | Osteoporosis | ✔ | ✔ | | | | | | | **UB107** (Class III Medical Device) | Bone Repair | ✔ | ✔ | | | | | | | **Ocular Regeneration** | | | | | | | | | | **UB102** | Macular Degeneration | ✔ | | | | | | | | **EGF** (Single-dose Ophthalmic Solution) | Corneal Repair | ✔ | ✔ | CTE | CTE | CTE | | | | **Skin Regeneration** | | | | | | | | | | **EGF** (Hydrogel) | Wound Healing | ✔ | ✔ | | | | | | | **Muscle Regeneration** | | | | | | | | | | **UB106** (Long-acting) | Obesity | ✔ | ✔ | | | | | | [Uni-PTH (Bogutai®) Innovative Formulation](index=9&type=section&id=3.4.3%20Uni-PTH%20(%E5%8D%9A%E5%9B%BA%E6%B3%B0%C2%AE)%20%E5%88%9B%E6%96%B0%E9%85%8D%E6%96%B9) **Uni-PTH** (Teriparatide) is an innovative biopharmaceutical for osteoporosis, with the second-generation **Bogutai®** successfully launched in China, and the third-generation microneedle form under development, with active preparations for US market entry - **Uni-PTH** (Recombinant Human Parathyroid Hormone **1–34**) is an effective anabolic agent for osteoporosis and bone pain, rapidly improving bone quality and restoring bone mineral density[21](index=21&type=chunk) - Second-generation **Uni-PTH** (**Bogutai®** pre-filled injection pen) approved by **NMPA** in January **2024**, China's first disposable injection pen, featuring high dosage accuracy and minimal injection pain[22](index=22&type=chunk) - Actively preparing **Uni-PTH** for **US FDA** submission, with approval expected before **2027**, becoming the Group's first biopharmaceutical product to enter international markets[22](index=22&type=chunk) - Third-generation microneedle form of **Uni-PTH** is under development, offering non-invasive, painless, and high patient compliance advantages, collaborating with a leading domestic microneedle technology company to develop biodegradable soluble Teriparatide microneedles[23](index=23&type=chunk) [UB107 Bone Repair Biomaterial](index=10&type=section&id=3.4.4%20UB107%20%E9%AA%A8%E4%BF%AE%E5%A4%8D%E7%94%9F%E7%89%A9%E6%9D%90%E6%96%99) **UB107** (**BMP–2** biomedical material) is a key growth factor in bone repair; the Group has established **API** production and is developing an innovative sustained-release hydrogel, its first Class III medical device candidate, expected to be approved within four years - **UB107** (**BMP–2** biomedical material) is a key growth factor in regenerative medicine, used for bone defect reconstruction and spinal fusion surgery[24](index=24&type=chunk) - The Group successfully established **BMP–2** active pharmaceutical ingredient (**API**) production process using the **ECO-KSFA®** technology platform and is developing an innovative sustained-release hydrogel formulation[24](index=24&type=chunk) - As the first Class III medical device candidate, targeting various orthopedic applications, market authorization is expected within **four** years[24](index=24&type=chunk) - Actively exploring the combination of **BMP–2** with stem cell technology for innovative osteoarthritis treatment, potentially offering new regenerative medical solutions[25](index=25&type=chunk) [UB102 wAMD Multispecific™ Molecule](index=11&type=section&id=3.4.5%20UB102%20wAMD%E5%A4%9A%E7%89%B9%E4%BD%93%E2%84%A2%E5%88%86%E5%AD%90) **UB102** is a bispecific nanobody for wet age-related macular degeneration (**wAMD**), demonstrating superior inhibition and higher affinity via a dual-targeting approach, potentially extending treatment intervals and addressing significant market demand - **UB102** (bispecific nanobody) is a promising candidate for treating wet age-related macular degeneration (**wAMD**), capable of simultaneously blocking two pro-angiogenic receptors[26](index=26&type=chunk) - Preliminary in vitro studies show **UB102** has significantly higher affinity for **VEGF-A** and **Ang–2**, which is expected to translate into significant efficacy and extended treatment intervals[26](index=26&type=chunk) - The number of **wAMD** cases in China is projected to reach **4.8 million** by **2030**, indicating huge market demand[27](index=27&type=chunk) [EGF (Geneshu®) Innovative Specifications](index=11&type=section&id=3.4.6%20EGF%20(%E9%87%91%E5%9B%A0%E8%88%92%C2%AE)%20%E5%88%9B%E6%96%B0%E8%A7%84%E6%A0%BC) **Geneshu®** is a prescription biopharmaceutical for corneal repair; the Group has approved **API** capacity expansion and is accelerating development of next-generation **Geneshu®** products, including **0.5mL** single-dose and **3mL** multi-dose preservative-free **BFS** formulations, with **NMPA** submission expected in **2026** - **Geneshu®** is a prescription biopharmaceutical for corneal repair, widely used in post-operative corneal wound healing and dry eye syndrome treatment[28](index=28&type=chunk) - **API** capacity expansion approved by **NMPA** in July **2025**, enabling development of more **EGF** products with new packaging specifications and expanded clinical indications[28](index=28&type=chunk) - Utilizing the newly commissioned **BFS** production line in Dongguan to accelerate development of next-generation **Geneshu®** products, including **0.5mL BFS** single-dose and **3mL BFS** multi-dose preservative-free formulations, with supplementary **NMPA** approval submission expected in **2026**[29](index=29&type=chunk) [Epidermal Growth Factor (Geneptin®) Hydrogel](index=12&type=section&id=3.4.7%20%E8%A1%A8%E7%9A%AE%E7%94%9F%E9%95%BF%E5%9B%A0%E5%AD%90%20(%E9%87%91%E5%9B%A0%E8%82%BD%C2%AE)%20%E6%B0%B4%E5%87%9D%E8%83%B6) The Group is developing a novel topical thermosensitive hydrogel formulation for **Geneptin®** to address the wide spray coverage of traditional solutions; this gel effectively fills wounds, forms a barrier, accelerates healing, and explores **bFGF** combination for superior clinical outcomes - The Group is developing a novel topical thermosensitive hydrogel for **Geneptin®**, addressing the issue of excessive spray coverage with traditional solution formulations[30](index=30&type=chunk) - The thermosensitive hydrogel remains liquid at low temperatures and solidifies at room temperature, offering excellent fluidity to effectively fill wounds, form a barrier, and reduce infection risk[30](index=30&type=chunk) - Preliminary efficacy trials demonstrate that the thermosensitive hydrogel provides sustained action, effectively achieves moist healing, accelerates wound closure, and reduces scar formation[31](index=31&type=chunk) - Collaborating with leading regenerative medicine research institutions to explore thermosensitive hydrogel formulations combining **EGF** and **bFGF** for superior clinical outcomes[31](index=31&type=chunk) [UB106 Novel Target Antibody for Obesity](index=13&type=section&id=3.4.8%20UB106%20%E8%82%A5%E8%83%96%E7%97%87%E6%96%B0%E9%9D%B6%E7%82%B9%E6%8A%97%E4%BD%93) The Group collaborates with **Greater Bay Bio** and **Tigermed** to develop innovative weight-loss drug **UB106**, aiming to address side effects and limitations of existing obesity treatments with novel targeted antibodies, leveraging **AI** to accelerate R&D and commercialization - In May **2024**, partnered with **Greater Bay Bio** (**GBB**) and **TigerMed Pebble Accelerator** (under **Tigermed**) to jointly develop innovative weight-loss drug **UB106**[33](index=33&type=chunk) - Aims to address gastrointestinal side effects, pancreatitis, increased suicide risk, weight regain after discontinuation, muscle loss, and frequent dosing requirements of existing obesity treatments through novel targeted antibodies[34](index=34&type=chunk) - Utilizes **AI** technology for molecular screening and affinity maturation to accelerate the R&D process[33](index=33&type=chunk) [Advanced Skincare Ingredients](index=13&type=section&id=3.4.9%20%E5%85%88%E8%BF%9B%E6%8A%A4%E8%82%A4%E5%8E%9F%E6%96%99) The Group is leveraging synthetic biology to develop various advanced new skincare ingredients, including cosmetic peptides, collagen, microbiome skincare, and stem cell exosome products, aiming for rapid commercialization to meet functional skincare market demands Advanced Skincare Ingredients Pipeline Overview | Product/Ingredient | Discovery | Product Development | Formulation Development | Marketed | | :--- | :--- | :--- | :--- | :--- | | Collagen | ✔ | ✔ | ✔ | | | Cosmetic Peptides | ✔ | ✔ | ✔ | | | Microbiome Skincare Products | ✔ | ✔ | | | | Stem Cell Exosome Products | ✔ | ✔ | ✔ | | [Collagen](index=14&type=section&id=3.4.9.1%20%E8%83%B6%E5%8E%9F%E8%9B%8B%E7%99%BD) The Group is actively developing collagen skincare products, having successfully obtained Class II medical device approval for recombinant collagen dressings, and collaborating with multiple companies on innovative formulations and applications - Collagen is the most abundant protein in the human body, widely used for moisturizing, maintaining skin barrier, and anti-aging[37](index=37&type=chunk) - In **2024**, recombinant collagen dressing, a strategic collaboration with Chongqing Minji Medical Device Co, Ltd, successfully obtained Class II medical device approval[37](index=37&type=chunk) [Cosmetic Peptides](index=14&type=section&id=3.4.9.2%20%E7%BE%8E%E5%AE%B9%E8%82%BD) The Group leverages clinical-grade peptide manufacturing experience and recombinant **DNA** technology to develop cosmetic peptide products, with the first product, Conopeptide, expected in **2026**, focusing on anti-wrinkle, anti-aging, whitening, and anti-allergic effects - Product line focuses on anti-wrinkle, anti-aging, whitening, and anti-allergic cosmetic benefits[38](index=38&type=chunk) - Recombinant **DNA** methods are superior to chemical manufacturing techniques in terms of cost, environmental impact, and development time[38](index=38&type=chunk) - Preliminary development of the first cosmetic peptide product, Conopeptide, has been completed, with launch expected in **2026**[38](index=38&type=chunk) [Microbiome Skincare Products](index=14&type=section&id=3.4.9.3%20%E5%BE%AE%E7%94%9F%E6%80%81%E6%8A%A4%E8%82%A4%E5%93%81) The Group applies synthetic biology to develop probiotic-fermented microbiome skincare products, aiming to balance skin flora, repair barriers, and promote wound healing, with the first product expected in **2026** - Microbiome skincare products, derived from probiotic fermentation, balance beneficial skin flora, repair the skin barrier, promote wound healing, and reduce **UV** damage[39](index=39&type=chunk) - The first microbiome skincare product, developed in collaboration with the Hong Kong Nano and Advanced Materials Institute, is expected to launch in **2026**[39](index=39&type=chunk) [Stem Cell Exosome Products](index=15&type=section&id=3.4.9.4%20%E5%B9%B2%E7%BB%86%E8%83%9E%E5%A4%96%E6%B3%8C%E4%BD%93%E4%BA%A7%E5%93%81) The Group is developing medical device products combining fibronectin and exosome technologies for wound healing and medical aesthetics, with support from the Hong Kong Science Park research fund - Exosomes are nanoscale bioactive substances involved in various skin biological and cellular activities; stem cell-derived exosomes promote skin regeneration, collagen synthesis, and help reduce scar formation[40](index=40&type=chunk) - This project, supported by the Hong Kong Science Park research fund, will combine fibronectin and exosome technologies to develop medical device products for wound healing and medical aesthetics[40](index=40&type=chunk) [High-Value Generics and Bioequivalence Studies](index=15&type=section&id=3.4.10%20%E9%AB%98%E4%BB%B7%E5%80%BC%E4%BB%BF%E5%88%B6%E8%8D%AF%E5%8F%8A%E7%94%9F%E7%89%A9%E7%AD%89%E6%95%88%E6%80%A7%E7%A0%94%E7%A9%B6) The Group continues to invest in high-value generics, particularly the antifungal drug Isavuconazonium Sulfate Capsules, whose marketing application has been accepted and is expected to be approved in H2 **2026** to meet growing market demand [Isavuconazonium Sulfate Capsules](index=15&type=section&id=3.4.10.1%20%E7%A1%AB%E9%85%B8%E8%89%BE%E6%B2%99%E5%BA%B7%E5%94%91%E8%83%B6%E5%9B%8A) The marketing application for Isavuconazonium Sulfate Capsules has been accepted by the **NMPA**, with approval expected in H2 **2026**, offering safer, more effective, and high-quality treatment for invasive fungal infections, benefiting from medical insurance coverage - The global antifungal drug market is projected for significant growth, with China's market size expected to reach **RMB 30 billion** by **2030**, at a **CAGR** exceeding **10%**[42](index=42&type=chunk) - Isavuconazonium Sulfate Capsules are a novel triazole antifungal drug, the only one indicated for invasive aspergillosis and invasive mucormycosis[42](index=42&type=chunk) - China sales exceeded **RMB 3.6 billion** in **2024**, a year-on-year increase of over **50%**, and it has been included in national medical insurance coverage[42](index=42&type=chunk) - In July **2025**, the **NMPA** officially accepted the marketing application for Isavuconazonium Sulfate Capsules, with approval expected in H2 **2026**[43](index=43&type=chunk) Performance Review [Overall Performance](index=16&type=section&id=4.1%20%E6%95%B4%E4%BD%93%E4%B8%9A%E7%BB%A9) Group revenue increased by **13.4%** to **HKD 310.2 million**, profit for the period grew by **12.7%** to **HKD 76.0 million**, and **EPS** rose by **16.5%** to **1.27 HK cents**, reflecting successful product commercialization, cost-effectiveness, and efficient management execution H1 2025 Overall Performance Overview | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Revenue | 310.2 | 273.6 | 13.4% | | Cost of Sales | 56.1 | 43.0 | 30.5% | | Gross Profit | 254.1 | 230.6 | 10.2% | | Gross Margin | 81.9% | 84.3% | -2.4pp | | R&D Expenses | 7.3 | 20.9 | -34.7% | | Profit for the Period | 76.0 | 67.4 | 12.7% | | EPS | 1.27 HK cents | 1.09 HK cents | 16.5% | - Gross margin decline primarily due to **Bogutai®** being in early commercialization, with relatively lower production and sales volumes leading to higher costs[45](index=45&type=chunk) [Sales of Listed Products](index=16&type=section&id=4.2%20%E4%B8%8A%E5%B8%82%E4%BA%A7%E5%93%81%E9%94%80%E5%94%AE) The Group's six listed products contributed to total revenue during the period, with **Geneptin®**, **Pinapu®**, and **Bogutai®** being the main income sources, and **Bogutai®** and **Boshutai®** achieving strong growth H1 2025 Revenue Contribution by Listed Products | Product | Share of Total Revenue | | :--- | :--- | | Geneptin® | 35.1% | | Geneshu® | 6.0% | | Pinapu® | 36.3% | | Boshutai® | 2.3% | | Bogutai® | 19.9% | | Jiyantai® | 0.4% | [Geneptin®](index=16&type=section&id=4.2.1%20%E9%87%91%E5%9B%A0%E8%82%BD%C2%AE) As a flagship product, **Geneptin®** revenue grew by **18.1%** year-on-year, primarily due to rapid expansion in retail channels (e-commerce and chain pharmacies), now covering over **6,000** chain pharmacies nationwide Geneptin® Sales Performance | Metric | H1 2025 (million HKD) | Y-o-Y Growth | | :--- | :--- | :--- | | Revenue | 107.8 | 18.1% | - Growth attributed to breakthroughs and rapid expansion in retail channels (especially e-commerce and chain pharmacies), now distributed to over **6,000** chain pharmacies nationwide[48](index=48&type=chunk) [Geneshu®](index=17&type=section&id=4.2.2%20%E9%87%91%E5%9B%A0%E8%88%92%C2%AE) **Geneshu®** revenue slightly decreased by **2.1%**; the Group is actively expanding its market share in chain pharmacies and preparing for medical insurance coverage to drive future growth Geneshu® Sales Performance | Metric | H1 2025 (million HKD) | Y-o-Y Change | | :--- | :--- | :--- | | Revenue | 18.5 | -2.1% | - The Group is actively introducing **Geneshu®** into chain pharmacies and preparing for its inclusion in medical insurance coverage by the end of **2025**[49](index=49&type=chunk) [Pinapu®](index=17&type=section&id=4.2.3%20%E5%8C%B9%E7%BA%B3%E6%99%AE%C2%AE) **Pinapu®** revenue decreased by **22.7%**, mainly due to local policy changes; the Group is adopting a more selective hospital supply strategy and actively expanding its pharmacy network and optimizing the supply chain to maintain profitability Pinapu® Sales Performance | Metric | H1 2025 (million HKD) | Y-o-Y Change | | :--- | :--- | :--- | | Revenue | 108.9 | -22.7% | - Revenue decline primarily due to adapting to local policy changes, with the Group adopting a more selective approach to hospital supply[50](index=50&type=chunk) - The Group is actively expanding its pharmacy network beyond traditional hospital channels and optimizing the supply chain to enhance profitability[50](index=50&type=chunk) [Boshutai®](index=17&type=section&id=4.2.4%20%E5%8D%9A%E8%88%92%E6%B3%B0%C2%AE) **Boshutai®** revenue surged by **84.8%**, driven by successful inclusion in the Henan **17**-province alliance centralized procurement, inventory reduction, and a lower base in the prior year, with more centralized procurement product deliveries expected in H2 Boshutai® Sales Performance | Metric | H1 2025 (million HKD) | Y-o-Y Growth | | :--- | :--- | :--- | | Revenue | 6.1 | 84.8% | - Successfully included in the Henan **17**-province alliance centralized procurement, with many provincial hospitals beginning procurement[51](index=51&type=chunk) [Bogutai®](index=18&type=section&id=4.2.5%20%E5%8D%9A%E5%9B%BA%E6%B3%B0%C2%AE) **Bogutai®** revenue surged by **248.9%**, primarily due to a lower base last year and continuous market building and promotion efforts, successfully establishing a broad and deep market network through a professional direct sales team and academic activities Bogutai® Sales Performance | Metric | H1 2025 (million HKD) | Y-o-Y Growth | | :--- | :--- | :--- | | Revenue | 65.6 | 248.9% | - Growth primarily attributed to a lower base last year (launched in March **2024**) and continuous market building and promotion effectiveness[52](index=52&type=chunk) - Positioned for top-tier tertiary hospital channels, strengthening brand awareness through a professional direct sales team and academic activities, and expanding the national market distribution network[53](index=53&type=chunk) [Jiyantai®](index=18&type=section&id=4.2.6%20%E8%82%8C%E9%A2%9C%E6%80%81%C2%AE) **Jiyantai®**, a newly launched medical aesthetics product utilizing proprietary **Skbrella™ FN** technology, achieved a robust market response of **HKD 1.3 million** in its initial phase; the Group is accelerating the launch of diversified medical aesthetics products to expand its business footprint Jiyantai® Sales Performance | Metric | H1 2025 (million HKD) | | :--- | :--- | | Revenue | 1.3 | - Developed using proprietary **Skbrella™ FN** (recombinant human fibronectin) technology to improve skin quality and accelerate repair[54](index=54&type=chunk) - Achieved a robust market response through promotional activities since its launch in December **2024**[54](index=54&type=chunk) Financial Performance Review [Revenue](index=19&type=section&id=5.1%20%E8%90%A5%E4%B8%9A%E9%A2%9D) The Group's revenue reached **HKD 310.2 million** in H1 **2025**, a **13.4%** year-on-year increase, primarily driven by growing product demand H1 2025 Revenue | Metric | H1 2025 (million HKD) | Y-o-Y Growth | | :--- | :--- | :--- | | Revenue | 310.2 | 13.4% | [Biopharmaceutical and Chemical Drug Sales](index=19&type=section&id=5.2%20%E7%94%9F%E7%89%A9%E8%8D%AF%E5%93%81%E4%B8%8E%E5%8C%96%E5%AD%A6%E8%8D%AF%E5%93%81%E9%94%80%E5%94%AE) Biopharmaceutical sales significantly increased by **51.3%**, accounting for **62.9%** of total sales and becoming the main growth driver, while chemical drug sales decreased H1 2025 Biopharmaceutical and Chemical Drug Sales | Product Category | H1 2025 (million HKD) | Y-o-Y Growth/Change | % of Total Sales | | :--- | :--- | :--- | :--- | | Biopharmaceuticals | 195.2 | 51.3% | 62.9% | | Chemical Drugs | 115.0 | -20.5% | 37.1% | [Gross Profit and Gross Margin](index=19&type=section&id=5.3%20%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by **10.2%** to **HKD 254.1 million**, but gross margin decreased by **2.4** percentage points to **81.9%**, mainly due to product mix changes and higher initial commercialization costs for new product **Bogutai®** H1 2025 Gross Profit and Gross Margin | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Growth/Change | | :--- | :--- | :--- | :--- | | Gross Profit | 254.1 | 230.6 | 10.2% | | Gross Margin | 81.9% | 84.3% | -2.4pp | - Gross margin decline primarily stemmed from product mix changes (reduced contribution from high-margin products) and higher costs due to small production scale during the early commercialization of new product **Bogutai®**[58](index=58&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=5.4%20%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E5%BC%80%E6%94%AF) Selling and distribution expenses increased by **12.5%** to **HKD 131.7 million**, primarily for **Bogutai®** brand building and market promotion, though its proportion of revenue slightly decreased H1 2025 Selling and Distribution Expenses | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Growth | % of Revenue | | :--- | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 131.7 | 117.0 | 12.5% | 42.4% | - Growth primarily due to increased investment in academic and market promotion activities for **Bogutai®** brand building[59](index=59&type=chunk) [R&D Expenses](index=20&type=section&id=5.5%20%E7%A0%94%E5%8F%91%E8%B4%B9%E7%94%A8) R&D expenses decreased by **34.7%** to **HKD 13.6 million**, mainly due to the completion of several development project milestones. H2 R&D expenses are expected to increase with continued investment in regenerative medicine innovation H1 2025 R&D Expenses | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | R&D Expenses | 13.6 | 20.9 | -34.7% | - Decrease primarily due to the completion of several development project milestones, including the submission of the Isavuconazonium Sulfate Capsules project application[60](index=60&type=chunk) - R&D expenses are expected to increase in H2, driven by the **Uni-PTH** development project for the **US** market, with continued increased investment in innovative R&D in regenerative medicine[60](index=60&type=chunk) [General and Administrative Expenses](index=20&type=section&id=5.6%20%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) General and administrative expenses increased by **27.4%** to **HKD 30.2 million**, primarily due to the hiring of staff for technology transfer following the completion of the new Dongguan plant H1 2025 General and Administrative Expenses | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Growth | % of Revenue | | :--- | :--- | :--- | :--- | :--- | | General and Administrative Expenses | 30.2 | 23.7 | 27.4% | 9.7% | - Growth primarily due to the hiring of staff for technology transfer following the completion of the new Dongguan plant[61](index=61&type=chunk) [Other Income](index=20&type=section&id=5.7%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A) Other income decreased by **19.3%** to **HKD 4.4 million**, primarily attributed to a reduction in **CMO** business H1 2025 Other Income | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Other Income | 4.4 | 5.5 | -19.3% | - Decrease primarily attributed to a reduction in **CMO** business[62](index=62&type=chunk) [Profit for the Period](index=21&type=section&id=5.8%20%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9) Profit for the period increased by **12.7%** to **HKD 76.0 million**, driven by sales channel expansion, increased **Bogutai®** demand, and continued focus on listed drugs, reflecting the company's strategic effectiveness in operational efficiency, cost control, and commercial execution H1 2025 Profit for the Period | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Profit for the Period | 76.0 | 67.4 | 12.7% | - Growth primarily due to sales channel expansion, increased **Bogutai®** demand, and continued focus on listed drugs[63](index=63&type=chunk) [Financial Position](index=21&type=section&id=5.9%20%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5) The Group's financial position continues to strengthen, with significant improvements in cash, current, and debt-to-equity ratios, and a shortened cash conversion cycle, indicating enhanced liquidity, operational efficiency, and a healthier capital structure H1 2025 Financial Position Improvement | Metric | End of 2024 | June 30, 2025 | Change | | :--- | :--- | :--- | :--- | | Cash Ratio | 0.53 times | 1.69 times | Improved | | Current Ratio | 2.58 times | 3.40 times | Improved | | Cash Conversion Cycle | 124 days | 79 days | Shortened | | Debt-to-Equity Ratio | 58.9% | 45.2% | Decreased | Outlook [Industry Policies and Market Opportunities](index=21&type=section&id=6.1%20%E8%A1%8C%E4%B8%9A%E6%94%BF%E7%AD%96%E4%B8%8E%E5%B8%82%E5%9C%BA%E6%9C%BA%E9%81%87) China's medical device industry is projected for strong growth, with government policies like "China Manufacturing **2025**" and measures supporting high-quality innovative drug development driving sector expansion, commercial health insurance, streamlined approvals, and a focus on innovation-driven enterprises, offering vast market opportunities for the Group - China's medical device industry is expected to grow at a **CAGR** of **8.9%** from **2023** to **2030**[65](index=65&type=chunk) - The Chinese government, through policies like "China Manufacturing **2025**" and "Several Measures to Support High-Quality Development of Innovative Drugs," promotes industry growth, expands commercial health insurance, strengthens drug approval regulations, and prioritizes R&D for pediatric drugs, major chronic diseases, and infectious disease treatments[65](index=65&type=chunk) - The government's national procurement program has been structurally adjusted to emphasize innovation-driven enterprises rather than solely focusing on drug price competition[65](index=65&type=chunk) [Diversification Strategy for Sustainable Development](index=22&type=section&id=6.2%20%E5%A4%9A%E6%A0%B7%E5%8C%96%E6%88%98%E7%95%A5%E7%A1%AE%E4%BF%9D%E5%8F%AF%E6%8C%81%E7%BB%AD%E5%8F%91%E5%B1%95) The Group implements a diversification strategy by strengthening its product pipeline, expanding global markets, pursuing continuous technological innovation, and deepening industry-academia-research collaborations to ensure its leading position and sustainable development in the dynamic pharmaceutical industry - The Group is committed to implementing innovative and diversified strategies across product, channel, and geographical markets to fully support sustainable development[66](index=66&type=chunk) [Robust Product Pipeline and Solid Promotion Plan](index=22&type=section&id=6.2.1%20%E5%BC%BA%E5%8A%B2%E4%BA%A7%E5%93%81%E7%AE%A1%E7%BA%BF%E4%B8%8E%E7%A8%B3%E5%81%A5%E6%8E%A8%E5%B9%BF%E8%AE%A1%E5%88%92) The Group continuously enriches its product portfolio with the launch of **Genecon®**, **GeneQueens™**, **Jinyinfu®**, and the marketing application for Isavuconazonium Sulfate Capsules, while expanding market reach and brand awareness through an omnichannel strategy including direct sales, distributor networks, and online platforms - New ophthalmic drug **Genecon®** has received marketing approval, which will strengthen the ophthalmic product portfolio and become one of the first Diquafosol Sodium products in the market utilizing **BFS** technology[67](index=67&type=chunk) - The launch of **Jiyantai®** high-end series **GeneQueens™** and medical aesthetics repair professional brand **Jinyinfu®** marks a key breakthrough in the medical aesthetics and medical device fields[68](index=68&type=chunk) - The marketing application for Isavuconazonium Sulfate Capsules has been accepted by the **NMPA**, with approval expected in H2 **2026**, which will solidify the Group's leading position in the antifungal market[68](index=68&type=chunk) - Implementing an omnichannel strategy, including a direct sales team, over **175** distributor networks (covering tier-three and tier-four cities), partnerships with **28** large chain pharmacies (covering over **6,000** stores), and flagship stores across all major online sales channels[69](index=69&type=chunk) - **Geneptin®** online sales already account for a major portion of e-commerce revenue, and active preparations are underway for its inclusion in the Guangdong **21**-province alliance centralized procurement[70](index=70&type=chunk) - Medical aesthetics products (**GeneQueens™** and **Jinyinfu®**) have established deep cooperative relationships with renowned medical aesthetics chain institutions and agents, and have received clinical recognition from top-tier tertiary hospitals[71](index=71&type=chunk) [Global Expansion](index=24&type=section&id=6.2.2%20%E5%85%A8%E7%90%83%E6%89%A9%E5%BC%A0) The Group is actively exploring international market opportunities, particularly in the **US**, Middle East, and Southeast Asia, and advancing **Uni-PTH**'s **US FDA** application, with approval expected as early as **2027**, making it the first overseas commercialized product - Actively exploring international market opportunities in regions such as the **US**, Middle East, and Southeast Asia[72](index=72&type=chunk) - Advancing **Uni-PTH**'s **US FDA** application, having obtained bioequivalence trial exemption, with approval expected as early as **2027**, which will be the first overseas commercialized biopharmaceutical product for the Group[72](index=72&type=chunk) [Continuous Technological Innovation and Product Expansion](index=24&type=section&id=6.2.3%20%E6%8C%81%E7%BB%AD%E6%8A%80%E6%9C%AF%E5%88%9B%E6%96%B0%E4%B8%8E%E4%BA%A7%E5%93%81%E6%8B%93%E5%B1%95) The Group has upgraded its R&D strategy, clearly positioning novel synthetic biology as the core driver for next-generation regenerative therapies, focusing on tissue repair and regeneration needs in orthopedics, ophthalmology, dermatology, and medical aesthetics products - R&D strategy upgraded, positioning novel synthetic biology as the core driver for developing next-generation regenerative therapies[73](index=73&type=chunk) - Focusing on areas with urgent tissue repair and regeneration needs, such as orthopedics, ophthalmology, dermatology, and medical aesthetics products[73](index=73&type=chunk) [Industry-Academia-Research Collaborative Innovation](index=24&type=section&id=6.2.4%20%E4%BA%A7%E5%AD%A6%E7%A0%94%E5%8D%8F%E5%90%8C%E5%88%9B%E6%96%B0) The Group is deeply collaborating with leading Chinese regenerative medicine research institutions through industry-academia cooperation programs to advance innovative drug and therapy development, solidifying its leadership in biopharmaceutical innovation - Engaging in deep collaboration with leading Chinese regenerative medicine research institutions to advance the development of innovative drugs and therapeutic solutions[74](index=74&type=chunk) - Driving continuous breakthroughs in regenerative medicine technology through resource sharing and collaborative innovation mechanisms[74](index=74&type=chunk) [Product Innovation Platform Progress](index=25&type=section&id=6.2.5%20%E4%BA%A7%E5%93%81%E5%88%9B%E6%96%B0%E5%B9%B3%E5%8F%B0%E8%BF%9B%E5%B1%95) The Group has established the advanced synthetic biology platform "**ECO-KSFA®** Microprotein Superfactory" and a bio-hydrogel technology platform, providing efficient R&D support for pharmaceuticals, medical devices, and medical aesthetics, and advancing tissue engineering and regenerative therapy technologies [Advanced Synthetic Biology Platform](index=25&type=section&id=6.2.5.1%20%E5%85%88%E8%BF%9B%E5%90%88%E6%88%90%E7%94%9F%E7%89%A9%E5%AD%A6%E5%B9%B3%E5%8F%B0) The Group has established the "**ECO-KSFA®** Microprotein Superfactory," integrating gene editing, **AI**-driven strain screening, vesicle nucleopeptide secretion technology, and continuous fermentation processes to achieve kilogram-scale, high-yield production of high-quality microproteins, filling strategic product portfolio gaps - Established the revolutionary "**ECO-KSFA®** Microprotein Superfactory," capable of efficient large-scale production of microproteins with complex structures[75](index=75&type=chunk) - This platform integrates advanced gene editing, **AI**-driven strain screening, vesicle nucleopeptide secretion technology, and continuous fermentation processes to achieve kilogram-scale, high-yield production[75](index=75&type=chunk) [Bio-Hydrogel Technology Platform](index=25&type=section&id=6.2.5.2%20%E7%94%9F%E7%89%A9%E6%B0%B4%E5%87%9D%E8%83%B6%E6%8A%80%E6%9C%AF%E5%B9%B3%E5%8F%B0) This platform utilizes polymer materials and responsive gel matrices to precisely control biocompatibility, mechanical properties, and dynamic functions, offering innovative regenerative medicine solutions for bone, cartilage, skin, and other tissue defects, already applied in wound healing and bone regeneration - Utilizes polymer materials and advanced responsive gel matrices to precisely control biocompatibility, mechanical properties, and dynamic functions[76](index=76&type=chunk) - Provides innovative regenerative medicine solutions for the repair of bone, cartilage, skin, and other tissue defects[76](index=76&type=chunk) - Currently applied in wound healing and bone regeneration, with future focus on cartilage repair and organ damage recovery[76](index=76&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=6.3%20%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) As of June **30**, **2025**, the Group's bank deposits, balances, and cash significantly increased, total and current assets grew, current liabilities decreased, and the total liabilities-to-total assets ratio declined, indicating a robust financial position Liquidity and Financial Resources as of June 30, 2025 | Metric (thousand HKD) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Bank Deposits, Balances & Cash | 170,514 | 65,009 | +105,505 | | Total Assets | 556,047 | 517,552 | +38,495 | | Current Assets | 342,036 | 318,779 | +23,257 | | Current Liabilities | 100,611 | 123,494 | -22,883 | | Total Liabilities to Total Assets Ratio | 31.1% | 37.1% | -6.0pp | [Significant Investments and Future Plans](index=26&type=section&id=6.4%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E5%8F%8A%E6%9C%AA%E6%9D%A5%E8%AE%A1%E5%88%92) For the six months ended June **30**, **2025**, the Group made no significant investments or had future plans regarding significant investments or capital assets - For the six months ended June **30**, **2025**, the Group made no significant investments or had future plans regarding significant investments or capital assets[78](index=78&type=chunk) [Significant Acquisitions and Disposals](index=26&type=section&id=6.5%20%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June **30**, **2025**, the Group made no significant acquisitions or disposals of assets, subsidiaries, associates, or joint ventures - For the six months ended June **30**, **2025**, the Group made no significant acquisitions or disposals of assets, subsidiaries, associates, or joint ventures[79](index=79&type=chunk) [Pledge of Assets](index=26&type=section&id=6.6%20%E8%B5%84%E4%BA%A7%E8%B4%A8%E6%8A%BC) As of June **30**, **2025**, the Group's land use rights, buildings, trademarks, and certifications with a combined carrying amount of approximately **HKD 16.1 million** were pledged to banks as collateral for borrowings Pledge of Assets as of June 30, 2025 | Pledged Asset Category | June 30, 2025 Carrying Amount (million HKD) | December 31, 2024 Carrying Amount (million HKD) | | :--- | :--- | :--- | | Land Use Rights, Buildings, Trademarks & Certifications | 16.1 | 15.6 | - Pledged assets serve as collateral for borrowings granted to the Group[80](index=80&type=chunk) [Employment and Remuneration Policies](index=26&type=section&id=6.7%20%E9%9B%87%E4%BD%A3%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June **30**, **2025**, the Group employed **504** staff, offering competitive remuneration, with promotions and salary increases based on performance, and eligible for share options Employee Composition as of June 30, 2025 | Department | Number of Employees | | :--- | :--- | | Total | 504 | | China R&D | 32 | | China Production | 229 | | China Commercial Office | 168 | | HK HQ Managers | 9 | | HK HQ R&D | 4 | - Offers competitive remuneration to attract and retain top talent, with promotions and salary increases determined by performance, and share options may be granted based on individual performance[81](index=81&type=chunk) Corporate Governance and Other Information [Corporate Governance](index=27&type=section&id=7.1%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) During the reporting period, the Company consistently complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the **HKEX** Listing Rules - The Company consistently complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the **HKEX** Listing Rules during H1 **2025**[82](index=82&type=chunk) [Standard Code for Securities Transactions](index=27&type=section&id=7.2%20%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and directors confirmed compliance throughout the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[83](index=83&type=chunk) - Directors have confirmed compliance with the Standard Code throughout H1 **2025**[83](index=83&type=chunk) [Share Buybacks, Sales or Redemptions](index=27&type=section&id=7.3%20%E8%82%A1%E4%BB%BD%E8%B4%AD%E5%9B%9E%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E) 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 shares - 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 shares[84](index=84&type=chunk) [Events After Reporting Period](index=27&type=section&id=7.4%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) After the reporting period, the Group extended a **RMB 12.64 million** connected loan to December **31**, **2025**, with an adjusted annual interest rate of **3.1%**; this connected transaction was approved by the Board [Connected Transaction - Extension of Connected Loan](index=27&type=section&id=7.4.1%20%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93%20-%20%E5%85%B3%E8%81%94%E8%B4%B7%E6%AC%BE%E5%BB%B6%E6%9C%9F) On July **28**, **2025**, the Group extended a **RMB 12.64 million** connected loan to December **31**, **2025**, with an adjusted annual interest rate of **3.1%**, secured by pledged patents - On July **28**, **2025**, the Group extended a connected loan of **RMB 12.64 million** to December **31**, **2025**[85](index=85&type=chunk) - The annual interest rate was adjusted to **3.1%**, and these loans remain secured by pledged patents, supporting the borrower's R&D activities[85](index=85&type=chunk) - This connected transaction is disclosable under Chapter **14A** of the Listing Rules but was exempted from shareholder approval and approved by the Board[86](index=86&type=chunk) [Interim Dividend](index=28&type=section&id=7.5%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any interim dividend for the six months ended June **30**, **2025** - The Board does not recommend the payment of any interim dividend for the six months ended June **30**, **2025**[89](index=89&type=chunk) [Audit Committee](index=28&type=section&id=7.6%20%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June **30**, **2025** - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June **30**, **2025**[90](index=90&type=chunk) [Publication of Results](index=28&type=section&id=7.7%20%E4%B8%9A%E7%BB%A9%E5%88%8A%E5%8F%91) This interim results announcement has been published on the **HKEX** and company websites; the interim report will be dispatched to shareholders and published on the aforementioned websites in due course - This interim results announcement has been published on the **HKEX** website (www.hkexnews.hk) and the Company's website (www.uni-bioscience.com)[91](index=91&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=29&type=section&id=8.1%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June **30**, **2025**, the Group's revenue was **HKD 310,225 thousand**, profit for the period was **HKD 75,955 thousand**, and basic and diluted earnings per share were **1.27 HK cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric (thousand HKD) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 310,225 | 273,615 | | Gross Profit | 254,084 | 230,588 | | Operating Profit | 79,407 | 71,808 | | Profit Before Tax | 78,649 | 71,543 | | Profit for the Period | 75,955 | 67,382 | | Total Comprehensive Income for the Period | 73,741 | 65,312 | | EPS (HK cents) | 1.27 | 1.09 | [Condensed Consolidated Statement of Financial Position](index=30&type=section&id=8.2%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June **30**, **2025**, the Group's total assets were **HKD 556,047 thousand**, net current assets were **HKD 241,425 thousand**, and total equity was **HKD 382,846 thousand** Condensed Consolidated Statement of Financial Position Summary | Metric (thousand HKD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 214,011 | 198,773 | | Current Assets | 342,036 | 318,779 | | Current Liabilities | 100,611 | 123,496 | | Net Current Assets | 241,425 | 195,283 | | Total Assets Less Current Liabilities | 455,436 | 394,056 | | Non-current Liabilities | 72,590 | 68,411 | | Net Assets | 382,846 | 325,645 | | Total Equity and Reserves | 382,846 | 325,645 | [Condensed Consolidated Statement of Cash Flows](index=32&type=section&id=8.3%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June **30**, **2025**, the Group's net cash from operating activities was **HKD 58,282 thousand**, net cash from investing activities was **HKD 86,649 thousand**, and cash and cash equivalents at period-end were **HKD 170,514 thousand** Condensed Consolidated Statement of Cash Flows Summary | Metric (thousand HKD) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 58,282 | 54,062 | | Net Cash Used in Investing Activities | 86,649 | (35,800) | | Net Cash (Used in)/Generated from Financing Activities | (29,064) | 25,329 | | Net Increase in Cash and Cash Equivalents | 115,867 | 43

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。 FUTURE MACHINE LIMITED 未來機器有限公司 （前稱為「Sprocomm Intelligence Limited」） （於開曼群島註冊成立之有限公司） （股份代號：1401） 截至二零二五年六月三十日止六個月的 中期業績公告 | | | | | | | | 截至六月三十日止六個月 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | 二零二五年 | | 二零二四年 | | | | | | | | | | | | | | | | | | | | （未 ...

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue and profit both decreased, with finance costs significantly increasing Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 144,711 | 149,889 | -3.59% | | Other income | 773 | 1,758 | -56.03% | | Employee benefits expense | (31,134) | (30,431) | 2.31% | | Depreciation of property, plant and equipment and right-of-use assets | (21,752) | (22,577) | -3.66% | | Subcontracting expenses | (14,666) | (15,068) | -2.67% | | Cost of products recognized | (60,817) | (65,884) | -7.69% | | Other expenses | (7,086) | (8,149) | -13.04% | | Operating profit | 9,224 | 8,617 | 7.04% | | Finance costs | (1,564) | (209) | 648.33% | | Profit before tax | 7,660 | 8,408 | -8.89% | | Income tax expense | (1,215) | (1,359) | -10.59% | | Profit and total comprehensive income for the period | 6,445 | 7,049 | -8.57% | | Attributable to equity holders of the Company | 7,005 | 7,231 | -3.12% | | Attributable to non-controlling interests | (560) | (182) | 207.69% | | Basic and diluted earnings per share (HK cents) | 1.40 | 1.44 | -2.78% | [Financial Statements](index=2&type=section&id=Financial%20Statements) [Unaudited Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and liabilities decreased, notably in inventory, trade receivables, and trade and other payables Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Total non-current assets | 50,883 | 77,904 | -34.68% | | Total current assets | 134,485 | 219,829 | -38.82% | | Inventories – finished goods | 21,771 | 67,120 | -67.56% | | Trade and other receivables and contract assets | 66,898 | 103,327 | -35.26% | | Bank balances and cash | 39,469 | 48,904 | -19.30% | | **LIABILITIES** | | | | | Total current liabilities | 76,423 | 165,182 | -53.74% | | Trade and other payables, accrued expenses and contract liabilities | 22,339 | 111,940 | -80.04% | | Total non-current liabilities | 5,786 | 25,800 | -77.50% | | **EQUITY** | | | | | Net assets | 103,159 | 106,751 | -3.36% | | Total equity attributable to equity holders of the Company | 102,826 | 105,858 | -2.86% | | Non-controlling interests | 333 | 893 | -62.71% | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the Company decreased, primarily influenced by profit for the period and dividends paid Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30) | Metric | 2025年6月30日 (HKD thousands) | 2024年6月30日 (HKD thousands) | | :--- | :--- | :--- | | Total equity attributable to equity holders of the Company at beginning of period | 105,858 | 111,977 | | Profit and total comprehensive income for the period | 7,005 | 7,231 | | Dividends | (10,037) | (10,037) | | Total equity attributable to equity holders of the Company at end of period | 102,826 | 109,171 | | Non-controlling interests at end of period | 333 | 1,112 | | Total equity at end of period | 103,159 | 110,283 | [Unaudited Condensed Consolidated Cash Flow Statement](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash from operating activities significantly decreased, leading to a net reduction in cash and cash equivalents Condensed Consolidated Cash Flow Statement (Six Months Ended June 30) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 23,025 | 71,847 | -67.96% | | Net cash used in investing activities | (64) | (66) | -3.03% | | Net cash used in financing activities | (32,396) | (42,586) | -23.93% | | Net (decrease)/increase in cash and cash equivalents | (9,435) | 29,195 | -132.31% | | Cash and cash equivalents at end of period | 39,469 | 67,164 | -41.23% | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=6&type=section&id=1.%20General%20Information) The Company is an investment holding company incorporated in the Cayman Islands, with subsidiaries primarily engaged in supply chain management services and marketing and sales businesses - The Group primarily engages in supply chain management services and marketing and sales businesses[10](index=10&type=chunk) [2. Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=2.%20Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) These interim financial statements are prepared in accordance with the Listing Rules and HKAS 34, adopting the same accounting policies as the 2024 annual financial statements, with no material impact from HKAS 21 (Amendment) - The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2024 annual financial statements[13](index=13&type=chunk) - The application of HKAS 21 (Amendment) has no material impact on the results and financial position of this interim financial report[14](index=14&type=chunk) [3. Revenue](index=7&type=section&id=3.%20Revenue) The Group's revenue primarily derives from supply chain management services and marketing and sales businesses, both of which declined in the first half of 2025, leading to a total revenue decrease of 3.59% year-on-year Revenue by Business Segment (Six Months Ended June 30) | Business Category | 2025 (HKD thousands) | 2024 (HKD thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Supply chain management services revenue | 69,103 | 73,210 | -5.61% | | Marketing and sales | 75,608 | 76,679 | -1.39% | | **Total Revenue** | **144,711** | **149,889** | **-3.59%** | [4. Segment Information](index=7&type=section&id=4.%20Segment%20Information) The Group's operating segments are divided into supply chain management services and marketing and sales businesses, with the former seeing declines in revenue and segment results, while the latter experienced a slight revenue decrease but increased segment results in H1 2025 Segment Revenue and Results (Six Months Ended June 30) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | 2025 Segment Results (HKD thousands) | 2024 Segment Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Supply chain management services business | 69,103 | 73,210 | 5,509 | 7,751 | | Marketing and sales business | 75,608 | 76,679 | 2,621 | 1,165 | | **Total** | **144,711** | **149,889** | **8,130** | **8,916** | - In the first half of 2025, additions to property, plant and equipment for the supply chain management services business amounted to **HKD 146 thousands**, and additions to right-of-use assets for the marketing and sales business were **HKD 1,374 thousands**[20](index=20&type=chunk) [5. Other Expenses](index=10&type=section&id=5.%20Other%20Expenses) For the six months ended June 30, 2025, other expenses decreased by 13.04% year-on-year, primarily due to a reduction in general office and administrative expenses Other Expenses Details (Six Months Ended June 30) | Expense Category | 2025 (HKD thousands) | 2024 (HKD thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Legal and professional fees | 978 | 985 | -0.71% | | Transportation expenses | 2,074 | 1,900 | 9.16% | | Utilities | 1,181 | 1,371 | -13.86% | | Repair and maintenance | 595 | 529 | 12.48% | | Storage expenses | 873 | 869 | 0.46% | | Packaging materials | 244 | 193 | 26.42% | | Insurance | 864 | 941 | -8.18% | | Miscellaneous | 277 | 1,361 | -79.65% | | **Total** | **7,086** | **8,149** | **-13.04%** | [6. Income Tax Expense](index=11&type=section&id=6.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, total income tax expense was **HKD 1,215 thousands**, a 10.59% decrease year-on-year, mainly due to reduced Hong Kong profits tax and increased deferred tax Income Tax Expense (Six Months Ended June 30) | Tax Category | 2025 (HKD thousands) | 2024 (HKD thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Current income tax – Hong Kong profits tax | 511 | 1,075 | -52.46% | | Current income tax – Macau complementary tax | – | 45 | -100.00% | | Deferred tax | 704 | 239 | 194.56% | | **Total income tax expense for the period** | **1,215** | **1,359** | **-10.59%** | - Hong Kong profits tax is calculated at **16.5%**, and Macau corporate tax at **12%**[21](index=21&type=chunk) [7. Dividends](index=11&type=section&id=7.%20Dividends) The Board has declared an interim dividend of **1.0 HK cent** per share, totaling approximately **HKD 5,018,000**, consistent with the prior year, in addition to the 2024 final dividend of **2.0 HK cents** per share - The Board declared an interim dividend of **1.0 HK cent** per share, totaling approximately **HKD 5,018,000**, consistent with the same period in 2024[23](index=23&type=chunk)[45](index=45&type=chunk) - A final dividend of **2.0 HK cents** per share for 2024, totaling approximately **HKD 10,037,000**, has been paid[22](index=22&type=chunk) - To qualify for the interim dividend, share transfer registration will be suspended from September 12 to September 15, 2025[24](index=24&type=chunk)[45](index=45&type=chunk) [8. Earnings Per Share](index=12&type=section&id=8.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share slightly decreased to **1.40 HK cents** from **1.44 HK cents** in the prior year, with diluted earnings per share remaining the same due to no potential dilutive shares Earnings Per Share (Six Months Ended June 30) | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings per share | 1.40 | 1.44 | | Diluted earnings per share | 1.40 | 1.44 | - Basic earnings per share is calculated based on profit attributable to equity holders of the Company of **HKD 7,005,000** and the weighted average number of ordinary shares in issue of **501,843,000 shares**[25](index=25&type=chunk) [9. Property, Plant and Equipment](index=12&type=section&id=9.%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's equipment acquisitions amounted to approximately **HKD 199,800**, a decrease from **HKD 256,000** in the prior year Property, Plant and Equipment Acquisitions (Six Months Ended June 30) | Item | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Acquisition of equipment | 199,800 | 256,000 | [10. Right-of-use Assets](index=12&type=section&id=10.%20Right-of-use%20Assets) For the six months ended June 30, 2025, additions to right-of-use assets totaled **HKD 1,374,000**, primarily related to capitalized lease payments under renewed lease agreements, a significant decrease from the prior year Right-of-use Assets Additions (Six Months Ended June 30) | Item | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Additions to right-of-use assets | 1,374,000 | 78,865,000 | - Additions are primarily related to capitalized lease payments under renewed lease agreements[28](index=28&type=chunk) [11. Trade Receivables](index=13&type=section&id=11.%20Trade%20Receivables) As of June 30, 2025, trade receivables (net of loss allowance) were **HKD 63,907 thousands**, a significant decrease of **34.86%** from December 31, 2024, with credit terms generally ranging from 0 to 120 days Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | | :--- | :--- | :--- | | 0 to 30 days | 26,291 | 33,243 | | 31 to 60 days | 16,507 | 40,825 | | 61 to 90 days | 12,248 | 16,746 | | Over 90 days | 8,861 | 7,306 | | **Total** | **63,907** | **98,120** | - The Group generally provides credit terms of **0 to 120 days** to customers[30](index=30&type=chunk) [12. Trade and Other Payables, Accrued Expenses and Contract Liabilities](index=14&type=section&id=12.%20Trade%20and%20Other%20Payables,%20Accrued%20Expenses%20and%20Contract%20Liabilities) As of June 30, 2025, total trade and other payables, accrued expenses, and contract liabilities amounted to **HKD 22,339 thousands**, a substantial **80.04%** decrease from December 31, 2024, primarily due to a significant reduction in trade payables Ageing Analysis of Trade and Other Payables (As of June 30) | Ageing | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | | :--- | :--- | :--- | | Trade payables | 15,110 | 101,536 | | Accrued employee benefits | 2,223 | 4,179 | | Accrued expenses | 4,342 | 3,811 | | Other payables | 578 | 2,328 | | Contract liabilities | 86 | 86 | | **Total** | **22,339** | **111,940** | [13. Share Capital](index=14&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital remained unchanged at **501,843 thousand shares**, with a capital amount of **HKD 5,018 thousands** Share Capital Information (As of June 30) | Item | 2025年6月30日 (thousand shares) | 2024年12月31日 (thousand shares) | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Issued and fully paid share capital | 501,843 | 501,843 | 5,018 | 5,018 | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=15&type=section&id=Business%20Review) The Group, as a one-stop logistics supply chain management service provider, primarily serves the fast-moving consumer goods and catering industries, maintaining profitability in H1 2025 through strict cost control and expansion of marketing and sales, despite challenging economic conditions - The Group primarily serves the fast-moving consumer goods and catering industries, offering supply chain management services and comprehensive distribution solutions[34](index=34&type=chunk) - In the first half of 2025, Hong Kong's GDP increased by **3.1%** year-on-year in real terms, but the retail sales value index only rose by **0.7%**, while Macau's retail sector recorded a decline, indicating an overall weak retail market[35](index=35&type=chunk) - The Group maintained profitability through stringent cost control measures and growth in its Hong Kong marketing and sales business[36](index=36&type=chunk) [2025 Milestones](index=16&type=section&id=2025%20Milestones) The Group continued its transformation into a 4PL service provider, securing new opportunities including a marketing and sales engagement with a leading Asian tissue product manufacturer, launching e-commerce via online sales platforms, and expanding cold chain logistics for a major global fast-food chain - The Group has been transforming into a Fourth-Party Logistics (4PL) service provider since 2019 and continued its expansion in 2025[37](index=37&type=chunk) - Appointed by a leading Asian tissue product manufacturer to provide marketing and sales services, diversifying product categories and customer base[37](index=37&type=chunk) - Launched e-commerce business through online sales platforms, managing two e-shops to accelerate product sales and reduce inventory turnover days[37](index=37&type=chunk) - Expanded cold chain logistics services for an existing multinational catering client, managing daily logistics operations for one of the world's largest fast-food chains in Hong Kong[38](index=38&type=chunk) [Outlook](index=17&type=section&id=Outlook) Looking ahead, the Group will continue to enhance service quality, leverage operational advantages to provide value-added services, and adapt to market changes through its strong distribution network, upholding its "Always Can Do" motto to deliver reliable and professional logistics solutions - The Group will continue to focus on enhancing service quality and leveraging operational advantages to provide value-added services to clients[39](index=39&type=chunk) - A strong distribution network established across key retail channels provides a solid foundation for future development[39](index=39&type=chunk) - The motto "Always Can Do" emphasizes providing reliable and professional logistics solutions to enhance efficiency and maintain a competitive edge[39](index=39&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) The Group's revenue and profit both declined in the first half of 2025, primarily due to global economic downturn, reduced service volumes, and a high-interest rate environment, though cost control measures led to a decrease in other expenses [Revenue](index=17&type=section&id=Revenue_FinancialReview) The Group's total revenue decreased by **3.5%** year-on-year to **HKD 144,700,000**, mainly due to reduced service volumes from a global economic downturn, with both supply chain management and marketing and sales businesses experiencing revenue declines - Total revenue decreased by approximately **3.5%** to **HKD 144,700,000**, primarily due to a decrease in service volume resulting from the overall global economic downturn[40](index=40&type=chunk) - Revenue from supply chain management services decreased by approximately **5.6%** to **HKD 69,100,000**[40](index=40&type=chunk) - Revenue from marketing and sales business decreased by approximately **1.4%** to **HKD 75,600,000**, as retail customer spending patterns became more conservative[40](index=40&type=chunk) [Employee Benefits Expense](index=17&type=section&id=Employee%20Benefits%20Expense) For the six months ended June 30, 2025, employee benefits expense was approximately **HKD 31,100,000**, a slight increase from the prior year, while the number of full-time employees decreased from 191 to 177 Employee Benefits Expense and Headcount | Metric | 2025 (HKD thousands/persons) | 2024 (HKD thousands/persons) | | :--- | :--- | :--- | | Employee benefits expense | 31,100 | 30,400 | | Number of full-time employees | 177 | 191 | [Other Expenses](index=18&type=section&id=Other%20Expenses_FinancialReview) For the six months ended June 30, 2025, other expenses were approximately **HKD 7,100,000**, a year-on-year decrease of approximately **13.0%**, primarily attributable to reduced general office and administrative expenses - Other expenses decreased by approximately **13.0%** to **HKD 7,100,000**, mainly due to a reduction in general office and administrative expenses[42](index=42&type=chunk) [Taxation](index=18&type=section&id=Taxation_FinancialReview) Taxation primarily refers to the provision for Hong Kong profits tax at **16.5%** and Macau corporate tax at **12.0%** - Hong Kong profits tax is calculated at **16.5%**, and Macau corporate tax at **12.0%**[43](index=43&type=chunk) [Profit](index=18&type=section&id=Profit_FinancialReview) For the six months ended June 30, 2025, the Group recorded a profit of approximately **HKD 6,400,000**, a year-on-year decrease of approximately **8.6%**, mainly due to a decline in sales volume caused by the global economic recession and high-interest rate environment - The Group recorded a profit of approximately **HKD 6,400,000**, representing a year-on-year decrease of approximately **8.6%**[44](index=44&type=chunk) - The decrease in profit was mainly due to a decline in sales volume resulting from the negative impact of the global economic recession and high-interest rate environment[44](index=44&type=chunk) [Interim Dividend](index=18&type=section&id=Interim%20Dividend_FinancialReview) The Board declared an interim dividend of **1.0 HK cent** per share, totaling approximately **HKD 5,018,000**, to be paid on or about September 26, 2025 - The Board declared an interim dividend of **1.0 HK cent** per share, totaling approximately **HKD 5,018,000**[45](index=45&type=chunk) - The interim dividend will be paid on or about September 26, 2025, to shareholders whose names appear on the register of members on September 15, 2025[45](index=45&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's operations and investments are primarily funded by cash generated from business operations and bank borrowings; as of June 30, 2025, net current assets were approximately **HKD 58,100,000**, cash and cash equivalents were approximately **HKD 39,500,000**, and bank borrowings were zero Liquidity Position (As of June 30) | Metric | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | | :--- | :--- | :--- | | Net current assets | 58,100 | 54,600 | | Cash and cash equivalents | 39,500 | 48,900 | | Bank borrowings | 0 | 1,000 | - The Directors confirm that the Group has sufficient financial resources to meet its obligations in the foreseeable future[46](index=46&type=chunk) [Gearing Ratio](index=19&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was **0.00**, a decrease from **0.01** as of December 31, 2024, indicating an extremely low level of financial leverage Gearing Ratio (As of June 30) | Metric | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Gearing ratio | 0.00 | 0.01 | [Foreign Exchange Risk](index=19&type=section&id=Foreign%20Exchange%20Risk) The Group's business activities are primarily denominated in Hong Kong Dollars and Macau Patacas, with no current foreign currency hedging policy, though the Board continuously monitors and considers hedging significant foreign exchange risks - The Group's business activities are primarily denominated in Hong Kong Dollars and Macau Patacas[48](index=48&type=chunk) - The Group currently has no foreign currency hedging policy, but the Directors will continue to monitor relevant foreign exchange risks[48](index=48&type=chunk) [Capital Commitments](index=19&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no significant capital commitments - The Group had no significant capital commitments as of June 30, 2025[49](index=49&type=chunk) [Capital Structure](index=19&type=section&id=Capital%20Structure) The Group's capital structure comprises issued share capital and reserves, which the Board regularly reviews and balances through dividend payments, new share issues, and debt - The capital structure consists of issued share capital and reserves[50](index=50&type=chunk) - The Board regularly reviews the capital structure and will balance the overall capital structure through dividend payments, new share issues, and debt[50](index=50&type=chunk) [Major Acquisitions and Disposals](index=20&type=section&id=Major%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no major acquisitions or disposals, though a lease renewal in 2024 resulted in the recognition of new right-of-use assets and lease liabilities of approximately **HKD 69,000,000** - For the six months ended June 30, 2025, the Group had no major acquisitions or disposals[51](index=51&type=chunk) - On June 20, 2024, the Group renewed an existing lease agreement, recognizing new right-of-use assets and lease liabilities of approximately **HKD 69,000,000**[51](index=51&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 177 full-time employees, a decrease from 183 as of December 31, 2024, with remuneration determined by factors such as qualifications, responsibilities, contributions, seniority, and market conditions Employee Headcount | Date | Number of Full-time Employees | | :--- | :--- | | 2025年6月30日 | 177 | | 2024年12月31日 | 183 | - Employee remuneration is determined based on qualifications, responsibilities, contributions, seniority, and prevailing market conditions[52](index=52&type=chunk) [Pledged Assets and Contingent Liabilities of the Group](index=20&type=section&id=Pledged%20Assets%20and%20Contingent%20Liabilities%20of%20the%20Group) As of June 30, 2025, the Group had no bank borrowings, though certain subsidiaries obtained **HKD 25,000,000** in bank facilities, with **HKD 15,000,000** guaranteed by the Group and **HKD 10,000,000** jointly guaranteed by the Group and non-controlling interests - As of June 30, 2025, the Group had no bank borrowings[53](index=53&type=chunk) - Certain subsidiaries have obtained bank facilities of **HKD 25,000,000**, of which **HKD 15,000,000** is guaranteed by the Group, and **HKD 10,000,000** is jointly guaranteed by the Group and non-controlling interests[53](index=53&type=chunk) [Purchase, Sale or Redemption of the Company’s Listed Securities](index=20&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company%E2%80%99s%20Listed%20Securities) 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 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[54](index=54&type=chunk) [Directors’ Securities Transactions](index=20&type=section&id=Directors%E2%80%99%20Securities%20Transactions) The Company has adopted a code of conduct no less stringent than the Model Code in Appendix C3 of the Listing Rules, and no non-compliance with trading standards or the code of conduct for securities transactions by Directors was found for the six months ended June 30, 2025 - The Company has adopted a code of conduct no less stringent than the Model Code in Appendix C3 of the Listing Rules[55](index=55&type=chunk) - No non-compliance with trading standards and the code of conduct for securities transactions by Directors was found for the six months ended June 30, 2025[55](index=55&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) [Directors’ and Chief Executive’s Interests in Shares](index=21&type=section&id=Directors%E2%80%99%20and%20Chief%20Executive%E2%80%99s%20Interests%20in%20Shares) As of June 30, 2025, several Directors and Chief Executives held interests in the Company's shares, with Mr. Yang Guangfa, Mr. Li Jianxiong, and Mr. Lu Youzhi holding substantial shares through controlled corporations and directly Directors’ and Chief Executive’s Interests in the Company (As of June 30) | Name | Capacity | Individual Interest (shares) | Other Interest (shares) | Total Interest (shares) | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Yang Guangfa | Interest in controlled corporation; and beneficial owner | 15,112,000 | 82,088,000 | 97,200,000 | 19.37% | | Mr. Li Jianxiong | Interest in controlled corporation; and beneficial owner | 3,968,000 | 143,796,000 | 147,764,000 | 29.44% | | Mr. Lu Youzhi | Interest in controlled corporation; and beneficial owner | 5,852,000 | 76,060,000 | 81,912,000 | 16.32% | | Mr. Zhong Zhibin | Beneficial owner | 64,000 | – | 64,000 | 0.01% | | Mr. Mai Dongsheng | Beneficial owner | 64,000 | – | 64,000 | 0.01% | - The "Other Interests" of Mr. Yang, Mr. Li, and Mr. Lu are shares held by their wholly-owned companies[56](index=56&type=chunk) Directors’ Interests in Associated Corporations (As of June 30) | Director Name | Name of Associated Corporation | Capacity/Nature of Interest | Shareholding Percentage (%) | | :--- | :--- | :--- | :--- | | Mr. Yang | Orange Blossom International Limited | Beneficial interest | 100% | | Mr. Li | Best Matrix Global Limited | Beneficial interest | 100% | | Mr. Lu | Leader Speed Limited | Beneficial interest | 100% | [Major Shareholders’ Interests in Shares](index=23&type=section&id=Major%20Shareholders%E2%80%99%20Interests%20in%20Shares) As of June 30, 2025, in addition to the Directors and Chief Executives, Best Matrix Global Limited, Orange Blossom International Limited, and Leader Speed Limited were major shareholders, with their spouses also deemed to have relevant interests Major Shareholders’ Interests in the Company (As of June 30) | Shareholder Name/Company Name | Capacity | Number of Shares/Relevant Shares Held/Owned | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | Best Matrix Global Limited | Beneficial owner | 143,796,000 | 28.65% | | Leader Speed Limited | Beneficial owner | 76,060,000 | 15.16% | | Orange Blossom International Limited | Beneficial owner | 82,088,000 | 16.36% | | Ms. Luo Huiyi | Spouse's interest | 97,200,000 | 19.37% | | Ms. Chen Bishan | Spouse's interest | 147,764,000 | 29.44% | | Ms. Huang Sufeng | Spouse's interest | 81,912,000 | 16.32% | - Ms. Luo Huiyi, Ms. Chen Bishan, and Ms. Huang Sufeng are the spouses of Mr. Yang, Mr. Li, and Mr. Lu, respectively, and are deemed to have relevant interests under the Securities and Futures Ordinance[60](index=60&type=chunk) [Arrangements for Purchase of Shares or Debentures](index=24&type=section&id=Arrangements%20for%20Purchase%20of%20Shares%20or%20Debentures) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries entered into any arrangements enabling the Company's Directors to acquire benefits by purchasing shares or debentures of the Company or any other body corporate - Neither the Company nor any of its subsidiaries entered into any arrangements enabling Directors to acquire benefits by purchasing shares or debentures[61](index=61&type=chunk) [Directors’ Interests in Significant Contracts](index=24&type=section&id=Directors%E2%80%99%20Interests%20in%20Significant%20Contracts) For the six months ended June 30, 2025, no significant contracts to which the Company or any of its subsidiaries was a party, and in which a Director had a material direct or indirect interest, remained in force - No significant contracts to which the Company or any of its subsidiaries was a party, and in which a Director had a material direct or indirect interest, remained in force[62](index=62&type=chunk) [Competing Interests](index=24&type=section&id=Competing%20Interests) For the six months ended June 30, 2025, the Directors were unaware of any business or interest of the Directors, controlling shareholders, management shareholders, and their respective associates that competed or might compete with the Group's business, nor any other conflicts of interest - The Directors are unaware of any business or interest that competes or may compete with the Group's business, nor any other conflicts of interest[63](index=63&type=chunk) [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The Company has complied with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive held by Mr. Yang Guangfa, an arrangement the Board believes is in the Group's best interest and ensures a balance of power - The Company has complied with the Corporate Governance Code, except for code provision C.2.1 (which states that the roles of chairman and chief executive should be separate)[64](index=64&type=chunk) - Mr. Yang Guangfa holds both the Chairman and Chief Executive roles, an arrangement the Board believes is in the Group's best interest for effective management and business development[64](index=64&type=chunk) - The Board comprises experienced and talented individuals, including three independent non-executive Directors, ensuring a balance of power and authority[64](index=64&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive Directors, is responsible for ensuring effective internal control and risk management frameworks and has reviewed the Group's unaudited interim results for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive Directors, with Ms. Lai Wing Ying as Chairman[65](index=65&type=chunk) - The Audit Committee is responsible for ensuring the company has effective internal control and risk management frameworks[65](index=65&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[65](index=65&type=chunk) [Board Approval and Signature](index=25&type=section&id=Board%20Approval%20and%20Signature) This announcement was approved for publication by the Board on August 28, 2025, and signed by Mr. Yang Guangfa, Chairman and Chief Executive - This announcement was approved for publication by the Board on August 28, 2025[67](index=67&type=chunk) - The executive Directors are Mr. Yang Guangfa, Mr. Li Jianxiong, and Mr. Lu Youzhi; the independent non-executive Directors are Ms. Lai Wing Ying, Mr. Zhong Zhibin, and Mr. Mai Dongsheng[67](index=67&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。 FOSHAN HAITIAN FLAVOURING AND FOOD COMPANY LTD. 佛山市海天調味食品股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3288） 截至2025年6月30日止六個月之中期業績公告 佛山市海天調味食品股份有限公司（「本公司」）董事會（「董事會」）謹此宣布本公 司及其附屬公司截至2025年6月30日止六個月之未經審核中期業績。本公告列載 本公司2025年中期報告全文，並符合《香港聯合交易所有限公司證券上市規則》有 關中期業績初步公告的要求。本公司2025年中期報告將適時在香港交易及結算所 有限公司披露易網站( www.hkexnews.hk )及本公司網站( www.haitian-food.com )刊 發。 佛山市海天調味食品股份有限公司 董事會 香港，2025年8月28日 於本公告日期，董事會成員包括：(i)執行董事程雪女士、管江華先生、 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company experienced revenue growth but a decline in profitability metrics for the six months ended June 30, 2025 [Overview of Financial Highlights](index=1&type=section&id=Overview%20of%20Financial%20Highlights) For the six months ended June 30, 2025, the company's revenue increased by 3% to RMB 534,563 thousand, but gross profit, profit for the period, and core net profit all decreased, by 5%, 10%, and 11% year-on-year respectively 2025 First Half Financial Highlights | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 534,563 | 517,419 | 17,144 | 3% | | Gross Profit | 328,717 | 347,238 | (18,521) | -5% | | Profit for the period | 305,311 | 340,998 | (35,687) | -10% | | Core Net Profit | 306,559 | 343,725 | (37,166) | -11% | [Financial Statements](index=2&type=section&id=Financial%20Statements) The financial statements for the period show revenue growth offset by increased costs, leading to reduced profitability, alongside changes in asset and liability structures [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue grew by 3%, but a significant increase in cost of services provided led to a 5% decrease in gross profit, with profit for the period and total comprehensive income also declining by 10% and 11% respectively 2025 First Half Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 534,563 | 517,419 | 17,144 | 3% | | Cost of services provided | (205,846) | (170,181) | (35,665) | 21% | | Gross Profit | 328,717 | 347,238 | (18,521) | -5% | | Other income and gains | 34,969 | 40,167 | (5,198) | -13% | | Profit before tax | 306,787 | 341,204 | (34,417) | -10% | | Income tax expense | (1,476) | (206) | (1,270) | 617% | | Profit for the period | 305,311 | 340,998 | (35,687) | -10% | | Total comprehensive income for the period | 306,152 | 342,535 | (36,383) | -11% | - Profit for the period attributable to owners of the parent was **RMB 237,806 thousand**, a year-on-year decrease of **11.2%**[7](index=7&type=chunk) - Basic and diluted earnings per share were **RMB 14.86 cents**, lower than **16.71 cents** in the prior year period[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and total equity increased, but net current assets and cash and cash equivalents significantly decreased, while non-current liabilities and interest-bearing bank borrowings substantially rose, leading to an increased gearing ratio 2025 June 30 Unaudited Condensed Consolidated Statement of Financial Position Key Data | Metric | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total non-current assets | 3,518,815 | 2,497,862 | 1,020,953 | 41% | | Total current assets | 1,442,929 | 2,208,371 | (765,442) | -35% | | Total current liabilities | 390,748 | 829,475 | (438,727) | -53% | | Net current assets | 1,052,181 | 1,378,896 | (326,715) | -24% | | Total non-current liabilities | 423,844 | 35,758 | 388,086 | 1085% | | Net assets | 4,147,152 | 3,841,000 | 306,152 | 8% | | Total equity | 4,147,152 | 3,841,000 | 306,152 | 8% | - Property, plant and equipment increased from **RMB 1,497,586 thousand** to **RMB 1,997,053 thousand**, primarily due to new campus construction[8](index=8&type=chunk) - Interest-bearing bank borrowings increased from nil to **RMB 598,000 thousand** (current **RMB 215,950 thousand**, non-current **RMB 382,050 thousand**), mainly for new campus construction[8](index=8&type=chunk)[10](index=10&type=chunk) [Notes to Financial Statements](index=7&type=section&id=Notes%20to%20Financial%20Statements) Detailed notes provide context on the company's operations, accounting policies, revenue breakdown, profitability drivers, and changes in financial position [1. Company Information](index=7&type=section&id=Company%20Information) The company was incorporated in the Cayman Islands in 2017, listed on the Hong Kong Stock Exchange in 2019, and primarily provides higher and secondary education services and related management services in China - The Company is an investment holding company primarily providing higher and secondary education services and related management services in China[13](index=13&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The accounting policies adopted for the interim financial information are consistent with the annual consolidated financial statements, with the initial adoption of amended IAS 21 (Lack of Exchangeability) having no material impact on the Group [2.1 Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated interim financial information is prepared in accordance with IAS 34 and presented in RMB, with all values rounded to the nearest thousand - The financial information is prepared in accordance with IAS 34 and presented in RMB[14](index=14&type=chunk) [2.2 Changes in Accounting Policies](index=7&type=section&id=Changes%20in%20Accounting%20Policies) The accounting policies adopted for the interim financial information are consistent with the annual consolidated financial statements, with the initial adoption of amended IAS 21 (Lack of Exchangeability) having no material impact on the Group - The initial adoption of amended IAS 21 (Lack of Exchangeability) has no impact on the financial information as the Group's transaction currencies are convertible[15](index=15&type=chunk)[16](index=16&type=chunk) [3. Operating Segment Information](index=8&type=section&id=Operating%20Segment%20Information) The Group primarily provides higher and secondary education services in China, with all revenue and substantially all long-term assets derived from China, thus no operating segment and geographical information is presented, and no single customer accounted for over 10% of revenue during the reporting period - The Group primarily provides higher and secondary education services in China, with all revenue generated in China and **99%** of long-term assets located in China[17](index=17&type=chunk)[18](index=18&type=chunk) - No single customer accounted for **10%** or more of total revenue during the reporting period[19](index=19&type=chunk) [4. Revenue, Other Income and Gains](index=9&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) For the six months ended June 30, 2025, total revenue increased by 3% year-on-year to RMB 534,563 thousand, primarily driven by tuition and accommodation fees, while other income and gains decreased by 13% mainly due to lower interest income 2025 First Half Revenue, Other Income and Gains Analysis | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | | | | | | Tuition fees | 489,615 | 470,100 | 19,515 | 4% | | Accommodation fees | 36,056 | 35,881 | 175 | 0.5% | | Other education service fees | 8,892 | 11,438 | (2,546) | -22% | | **Total revenue from contracts with customers** | **534,563** | **517,419** | **17,144** | **3%** | | **Other income and gains** | | | | | | Interest income | 13,922 | 26,090 | (12,168) | -47% | | Rental income | 8,911 | 7,539 | 1,372 | 18% | | Government grants (related to expenses) | 4,939 | 2,776 | 2,163 | 78% | | Government grants (related to assets) | 3,112 | 2,696 | 416 | 15% | | Others | 4,085 | 1,066 | 3,019 | 283% | | **Total other income and gains** | **34,969** | **40,167** | **(5,198)** | **-13%** | - Total contract liabilities significantly decreased from **RMB 528,383 thousand** as of December 31, 2024, to **RMB 14,113 thousand** as of June 30, 2025, mainly due to prepaid tuition and accommodation fees being recognized as revenue[22](index=22&type=chunk) [5. Profit Before Tax](index=10&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was RMB 306,787 thousand, a 10% year-on-year decrease, primarily impacted by increased employee benefit expenses, cost of services provided, depreciation and amortization, and reduced interest income 2025 First Half Profit Before Tax Key Influencing Factors | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Employee benefit expenses | 163,822 | 135,775 | 28,047 | 21% | | Cost of services provided | 205,846 | 170,181 | 35,665 | 21% | | Depreciation of property, plant and equipment | 33,323 | 32,453 | 870 | 3% | | Depreciation of right-of-use assets | 9,203 | 4,197 | 5,006 | 119% | | Amortisation of other intangible assets | 2,626 | 1,002 | 1,624 | 162% | | Interest income | (13,922) | (26,090) | 12,168 | -47% | [6. Income Tax](index=11&type=section&id=Income%20Tax) Income tax expense significantly increased from RMB 206 thousand in the first half of 2024 to RMB 1,476 thousand in the first half of 2025, mainly due to increased PRC corporate income tax expense, as Jingyi High School transitioned to a for-profit private school taxed at 25%, while Zhengzhou Jingmao College and Changzheng College remain non-profit private entities with tax-exempt academic education income 2025 First Half Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current - Mainland China | 1,476 | 206 | - Jingyi High School transitioned to a for-profit private school in 2023 and has been subject to PRC corporate income tax at a rate of **25%** since 2023[26](index=26&type=chunk) - Zhengzhou Jingmao College and Changzheng College remain non-profit private entities, with their academic education income considered tax-exempt[26](index=26&type=chunk)[27](index=27&type=chunk) [7. Dividends](index=13&type=section&id=Dividends) No interim dividends were proposed for the six months ended June 30, 2025, or 2024 - No interim dividends were proposed for the six months ended June 30, 2025, and 2024[30](index=30&type=chunk) [8. Earnings Per Share Attributable to Owners of the Company's Ordinary Shares](index=13&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company%27s%20Ordinary%20Shares) For the six months ended June 30, 2025, basic and diluted earnings per share were RMB 14.86 cents, lower than 16.71 cents in the prior year, primarily due to a decrease in profit for the period attributable to owners of the parent's ordinary shares 2025 First Half Earnings Per Share Data | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the parent (RMB thousands) | 237,806 | 267,523 | | Weighted average number of ordinary shares outstanding (shares) | 1,600,830,000 | 1,600,830,000 | | Basic and diluted earnings per share (RMB cents) | 14.86 | 16.71 | - The Group had no outstanding potential dilutive ordinary shares during the reporting period[31](index=31&type=chunk) [9. Trade Receivables](index=14&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were RMB 763 thousand, a significant decrease from RMB 1,851 thousand as of December 31, 2024, mainly due to reduced tuition and accommodation fees receivable and increased impairment, with most receivables aged within one year Trade Receivables Net Book Value and Ageing Analysis | Item | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Tuition and accommodation fees receivable | 4,709 | 5,136 | (427) | -8% | | Impairment | (3,946) | (3,285) | (661) | 20% | | **Net book value** | **763** | **1,851** | **(1,088)** | **-59%** | | **Ageing analysis (net value):** | | | | | | Within one year | 668 | 1,544 | (876) | -57% | | One to two years | 93 | 222 | (129) | -58% | | Two to three years | 2 | 69 | (67) | -97% | | Over three years | – | 16 | (16) | -100% | - Trade receivables primarily represent amounts due from students with financial difficulties, which are interest-free and repayable on demand[33](index=33&type=chunk) [10. Other Payables and Accrued Expenses](index=15&type=section&id=Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, other payables and accrued expenses totaled RMB 151,618 thousand, a decrease from RMB 209,906 thousand as of December 31, 2024, mainly due to reductions in miscellaneous advances from students, salaries and welfare payables, and other taxes payable Other Payables and Accrued Expenses Main Components | Item | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Miscellaneous advances from students | 35,858 | 47,692 | (11,834) | -25% | | Salaries and welfare payables | 35,501 | 59,514 | (24,013) | -40% | | Other taxes payable | 14,469 | 26,903 | (12,434) | -46% | | Textbooks payables | 14,006 | 12,451 | 1,555 | 12% | | Collections on behalf of ancillary service providers | 11,227 | 14,685 | (3,458) | -24% | | Other payables | 33,875 | 41,222 | (7,347) | -18% | | **Total** | **151,618** | **209,906** | **(58,288)** | **-28%** | - The balances mentioned above are unsecured, interest-free, and repayable on demand[35](index=35&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) Management discusses business operations, strategic initiatives, financial performance, and human resources for the reporting period [Business Review](index=16&type=section&id=Business%20Review) The Group is a leading private higher education provider in Zhejiang and Henan provinces, also offering high school education in Zhejiang, and is expanding its higher education capacity with a new campus while benefiting from supportive vocational education policies in China [Overview](index=16&type=section&id=Overview) The Group is the largest private higher education institution in Zhejiang Province and one of the leading private higher education institutions in Henan Province, also providing high school education in Zhejiang Province, and is constructing a new campus for Jingmao College to expand its higher education scale, benefiting from favorable policies for vocational education in China - The Group is the largest private higher education institution in Zhejiang Province and one of the leading private higher education institutions in Henan Province[36](index=36&type=chunk) - A new campus for Jingmao College is under construction in Zhengzhou, Henan Province, to expand higher education capacity, with educational services expected to commence in the **2026/2027** academic year[36](index=36&type=chunk)[44](index=44&type=chunk) - The Group benefits from the Chinese government's continuous support and favorable policies for vocational education development[37](index=37&type=chunk) [Changzheng College](index=16&type=section&id=Changzheng%20College) Zhejiang Changzheng Vocational Technical College, located in Hangzhou, offers junior college education and ranked first in Zhejiang Province for private junior college enrollment plans in 2024, boasting 40 on-campus training bases and collaborations with 594 industry associations and enterprises for school-enterprise cooperation and industry-education integration - Changzheng College's **2024** enrollment plan ranked first among private junior colleges in Zhejiang Province[38](index=38&type=chunk) - The college has **40** on-campus training bases and **186** experimental training rooms, with several designated as Ministry of Education or provincial demonstration training bases[40](index=40&type=chunk) - It has established off-campus internship and training bases with **594** industry associations and enterprises and is a pilot unit for the Chinese characteristic apprenticeship system in Zhejiang Province[42](index=42&type=chunk) [Jingmao College](index=18&type=section&id=Jingmao%20College) Zhengzhou Jingmao College, located in Zhengzhou, Henan, offers undergraduate and junior college education, with its 2024 undergraduate enrollment plan ranking sixth among private undergraduate institutions in Henan Province, covering six major disciplines including management and economics, and actively enhancing applied talent training quality through government-school-enterprise cooperation and industry college construction - Jingmao College's **2024** undergraduate enrollment plan ranked sixth among private undergraduate institutions in Henan Province[43](index=43&type=chunk) - It comprises **12** schools and **1** department, offering **51** undergraduate majors and **32** junior college majors, with **5** provincial key construction disciplines and **6** provincial first-class majors[45](index=45&type=chunk) - The college has established government-school-enterprise cooperation with entities like the Shanghai Minhang District Investment Promotion Service Center and co-built high-standard off-campus internship bases with over **200** enterprises[46](index=46&type=chunk)[48](index=48&type=chunk) [Jingyi High School](index=20&type=section&id=Jingyi%20High%20School) Yueqing Jingyi High School Co Ltd is a for-profit private high school in Wenzhou, Zhejiang, providing non-compulsory private education, focusing on fostering students' learning, character, and happiness, and equipped with extensive multimedia rooms, laboratories, and computer rooms - Jingyi High School is a for-profit private high school located in Wenzhou, Zhejiang, providing non-compulsory private education[47](index=47&type=chunk) - Its curriculum is designed with reference to the general high school curriculum standards of Zhejiang educational institutions, offering **13** main courses[47](index=47&type=chunk) [Teachers](index=21&type=section&id=Teachers) The company places high importance on teacher quality, focusing on educational background, teaching experience, professional competence, and communication skills during recruitment, with approximately 99.9% of teachers holding a bachelor's degree or above and 77.7% holding a master's degree or above as of June 30, 2025 - As of June 30, 2025, approximately **99.9%** of teachers hold a bachelor's degree or above, and approximately **77.7%** hold a master's degree or above[49](index=49&type=chunk) [Tuition and Accommodation Fees](index=21&type=section&id=Tuition%20and%20Accommodation%20Fees) The company typically collects tuition and accommodation fees in advance at the beginning of each academic year and recognizes revenue proportionally over the period related to the school curriculum - Tuition and accommodation fees are typically collected in advance at the beginning of each academic year and recognized as revenue proportionally over the course period[50](index=50&type=chunk) [Student Enrollment](index=21&type=section&id=Student%20Enrollment) As of June 30, 2025, student enrollment at Jingmao College, Changzheng College, and Jingyi High School all showed growth Student Enrollment as of June 30 | School Name | 2025 | 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Jingmao College | 36,052 | 35,722 | 330 | 0.9% | | Changzheng College | 21,094 | 20,926 | 168 | 0.8% | | Jingyi High School | 1,125 | 1,101 | 24 | 2.2% | [Average Tuition and Accommodation Fees](index=21&type=section&id=Average%20Tuition%20and%20Accommodation%20Fees) For the six months ended June 30, 2025, average tuition and accommodation fees increased at Jingmao College and Jingyi High School, while Changzheng College experienced a slight decrease Average Tuition and Accommodation Fees as of June 30 (RMB) | School Name | 2025 Average Tuition | 2024 Average Tuition | Change (%) | 2025 Average Accommodation Fee | 2024 Average Accommodation Fee | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jingmao College | 8,219 | 7,829 | 5.0% | 677 | 635 | 6.6% | | Changzheng College | 8,604 | 8,730 | -1.4% | 924 | 929 | -0.5% | | Jingyi High School | 12,641 | 11,198 | 12.9% | 623 | 445 | 40.0% | [Business Strategies](index=22&type=section&id=Business%20Strategies) The company plans to further expand its school network in China and overseas, leveraging IPO proceeds, bank borrowings, and internal funds [1. Expand Business Operations and School Network](index=22&type=section&id=Expand%20Business%20Operations%20and%20School%20Network) The company is constructing a new campus for Jingmao College, expected to accommodate approximately 20,000 students, which will significantly enhance educational services and facilities, positively impacting future sustainable development - A new campus for Jingmao College is under construction, expected to accommodate approximately **20,000** students, which will significantly enhance educational services and facilities[54](index=54&type=chunk) [2. Acquisitions](index=22&type=section&id=Acquisitions) The company plans to acquire or invest in for-profit private schools in China with low utilization and/or significant development potential, particularly in Central, East, and South China - Plans to acquire or invest in for-profit private schools in China with low utilization and/or significant development potential, focusing on Central, East, and South China[55](index=55&type=chunk) [3. Establish or Acquire New Overseas Schools](index=22&type=section&id=Establish%20or%20Acquire%20New%20Overseas%20Schools) The company plans to establish California School, a degree-granting higher education institution in California, USA, offering business administration and international business courses, and is actively seeking suitable overseas acquisition targets - Plans to establish California School, a degree-granting higher education institution in California, USA, offering business administration and international business-related courses[58](index=58&type=chunk) - Actively seeking opportunities to acquire suitable overseas schools[58](index=58&type=chunk) [4. Optimize Pricing Strategy to Enhance Profitability](index=22&type=section&id=Optimize%20Pricing%20Strategy%20to%20Enhance%20Profitability) The company plans to optimize its pricing strategy to enhance profitability without compromising its reputation or ability to attract and retain students - Plans to optimize pricing strategy to enhance profitability without compromising reputation or ability to attract and retain students[57](index=57&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) The Group's revenue primarily comes from tuition and accommodation fees from its schools in China, with revenue increasing by 3% during the period, but a significant rise in cost of services provided led to a 5% decrease in gross profit, and profit for the period and core net profit both declined by approximately 10-11% [Overview](index=23&type=section&id=Overview%20(Financial%20Review)) The Group's revenue primarily comes from tuition and accommodation fees from its schools in China, with revenue increasing by 3% during the period, but a significant rise in cost of services provided led to a 5% decrease in gross profit, and profit for the period and core net profit both declined by approximately 10-11% - Revenue primarily derived from tuition and accommodation fees from schools in China, with a **3%** year-on-year increase to **RMB 534.6 million** for the period[59](index=59&type=chunk) - Gross profit decreased by **5%** year-on-year, profit for the period decreased by **10%** year-on-year, and core net profit decreased by **11%** year-on-year[4](index=4&type=chunk)[61](index=61&type=chunk)[69](index=69&type=chunk)[72](index=72&type=chunk) [Revenue](index=23&type=section&id=Revenue%20(Financial%20Review)) Revenue increased by 3% year-on-year to RMB 534.6 million, primarily driven by increased enrollment leading to higher tuition and accommodation fee income - Revenue increased by **3%** year-on-year to **RMB 534.6 million**, primarily due to increased enrollment, leading to growth in tuition and accommodation fee income[59](index=59&type=chunk) [Cost of Services Provided](index=23&type=section&id=Cost%20of%20Services%20Provided) Cost of services provided increased by 21% year-on-year to RMB 205.8 million, mainly due to higher staff costs, depreciation expenses, and student activity expenses - Cost of services provided increased by **21%** year-on-year to **RMB 205.8 million**, primarily due to increased staff costs, depreciation expenses, and student activity expenses[60](index=60&type=chunk) [Gross Profit](index=23&type=section&id=Gross%20Profit%20(Financial%20Review)) Gross profit decreased by 5% year-on-year to RMB 328.7 million, primarily impacted by the increase in cost of services provided - Gross profit decreased by **5%** year-on-year to **RMB 328.7 million**, primarily impacted by the increase in cost of services provided[61](index=61&type=chunk) [Other Income and Gains](index=23&type=section&id=Other%20Income%20and%20Gains%20(Financial%20Review)) Other income and gains decreased by 13% year-on-year to RMB 35.0 million, mainly due to reduced interest income - Other income and gains decreased by **13%** year-on-year to **RMB 35.0 million**, primarily due to reduced interest income[62](index=62&type=chunk) [Selling and Distribution Expenses](index=23&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by 19% year-on-year to RMB 2.1 million - Selling and distribution expenses decreased by **19%** year-on-year to **RMB 2.1 million**[63](index=63&type=chunk) [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) Administrative expenses increased by 23% year-on-year to RMB 52.1 million, mainly due to higher staff costs, depreciation expenses, and professional fees - Administrative expenses increased by **23%** year-on-year to **RMB 52.1 million**, primarily due to increased staff costs, depreciation expenses, and professional fees[64](index=64&type=chunk) [Other Expenses](index=24&type=section&id=Other%20Expenses) Other expenses increased by 64% year-on-year to RMB 1.8 million, mainly due to increased losses from disposal of fixed assets - Other expenses increased by **64%** year-on-year to **RMB 1.8 million**, primarily due to increased losses from disposal of fixed assets[65](index=65&type=chunk) [Finance Costs](index=24&type=section&id=Finance%20Costs) Finance costs significantly increased to RMB 0.9 million, primarily due to interest incurred on new bank borrowings for new campus construction - Finance costs significantly increased to **RMB 0.9 million**, primarily due to interest incurred on new bank borrowings for new campus construction[66](index=66&type=chunk) [Profit Before Tax](index=24&type=section&id=Profit%20Before%20Tax%20(Financial%20Review)) Profit before tax decreased by 10% year-on-year to RMB 306.8 million, resulting from the combined impact of increased expenses and reduced income - Profit before tax decreased by **10%** year-on-year to **RMB 306.8 million**[67](index=67&type=chunk) [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense%20(Financial%20Review)) Income tax expense significantly increased to RMB 1.5 million, primarily due to higher PRC corporate income tax expense - Income tax expense significantly increased to **RMB 1.5 million**, primarily due to higher PRC corporate income tax expense[68](index=68&type=chunk) [Profit for the Period](index=24&type=section&id=Profit%20for%20the%20Period%20(Financial%20Review)) Profit for the period decreased by 10% year-on-year to RMB 305.3 million - Profit for the period decreased by **10%** year-on-year to **RMB 305.3 million**[69](index=69&type=chunk) [Profit Attributable to Owners of the Company](index=24&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) Profit attributable to owners of the company decreased by 11% year-on-year to RMB 237.8 million - Profit attributable to owners of the company decreased by **11%** year-on-year to **RMB 237.8 million**[70](index=70&type=chunk) [Core Net Profit](index=25&type=section&id=Core%20Net%20Profit%20(Financial%20Review)) Core net profit was RMB 306,559 thousand, a 11% year-on-year decrease, representing profit for the period adjusted for items not indicative of the Group's operating performance Reconciliation of Profit for the Period to Core Net Profit | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Profit for the period | 305,311 | 340,998 | (35,687) | -10% | | Less: Exchange gains | 1,487 | 8 | 1,479 | 18488% | | Add: Amortisation of property, plant and equipment and intangible assets arising from acquisition of Jingmao College | 2,735 | 2,735 | 0 | 0% | | **Core Net Profit** | **306,559** | **343,725** | **(37,166)** | **-11%** | [Financial and Liquidity Position](index=25&type=section&id=Financial%20and%20Liquidity%20Position) Net current assets decreased by 24% year-on-year to RMB 1,052.2 million, and cash and cash equivalents decreased by RMB 953.8 million, while bank borrowings increased to RMB 598 million, primarily for new campus construction, raising the gearing ratio to 14% - Net current assets decreased by **RMB 326.7 million** to **RMB 1,052.2 million**, primarily due to a decrease in contract liabilities and cash and cash equivalents[73](index=73&type=chunk) - Cash and cash equivalents decreased by **RMB 953.8 million**, mainly due to cash outflows from operating activities, additions to property, plant and equipment, and an increase in time deposits, partially offset by new bank loans[74](index=74&type=chunk) - Bank borrowings increased to **RMB 598 million**, primarily for new campus construction, leading to a gearing ratio increase from nil to **14%**[75](index=75&type=chunk)[76](index=76&type=chunk) [Capital Expenditure](index=26&type=section&id=Capital%20Expenditure) Capital expenditure significantly increased to RMB 641.3 million, primarily for the acquisition of land use rights and construction of new campuses - Capital expenditure was **RMB 641.3 million**, a significant year-on-year increase, primarily for the acquisition of land use rights and construction of new campuses[77](index=77&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no unrecorded significant contingent liabilities or major litigations - As of June 30, 2025, the Group had no unrecorded significant contingent liabilities or major litigations[78](index=78&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) The Group's majority of income and losses are denominated in RMB, with some bank balances in USD, AUD, or HKD, but no significant foreign exchange risk was encountered during the reporting period, and no hedging policy is in place - The Group's majority of income and losses are denominated in RMB, and no significant foreign exchange risk was encountered, with no hedging policy in place[79](index=79&type=chunk) [Pledge of Group Assets](index=26&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, the Group had no assets pledged[80](index=80&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 3,092 employees, with total employee benefit expenses of RMB 163.8 million, offering comprehensive remuneration, benefits, and training, while maintaining good employee relations - As of June 30, 2025, the Group had **3,092** employees, with total employee benefit expenses of **RMB 163.8 million**[81](index=81&type=chunk) - Remuneration is based on performance, experience, and industry practice, with a share option scheme provided to incentivize and retain talent[81](index=81&type=chunk) [Corporate Governance and Other Information](index=27&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers corporate governance practices, significant events, and other disclosures related to the company's operations and compliance [Material Investments, Major Acquisitions and Disposals](index=27&type=section&id=Material%20Investments%2C%20Major%20Acquisitions%20and%20Disposals) Other than those disclosed in this interim results announcement, the Group had no other material investments, acquisitions, or disposals of assets during the reporting period - During the reporting period, the Group had no other material investments, acquisitions, or disposals of assets[82](index=82&type=chunk) [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) From June 30, 2025, to the date of this announcement, no events have occurred that would significantly impact the Group's operations and financial performance - No events have occurred after the reporting period up to the date of this announcement that would significantly impact the Group's operations and financial performance[83](index=83&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Group is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules, though the Chairman also serving as Chief Executive Officer deviates from Code Provision C.2.1, which the Board believes benefits the Group's overall strategic planning and efficient decision-making - The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[84](index=84&type=chunk) - The Chairman also serving as Chief Executive Officer deviates from Code Provision C.2.1, but the Board believes this arrangement facilitates consistent leadership and efficient decision-making for the Group[84](index=84&type=chunk) [Standard Code for Securities Transactions](index=28&type=section&id=Standard%20Code%20for%20Securities%20Transactions) All Directors confirm compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the reporting period - All Directors confirm compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the reporting period[85](index=85&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[86](index=86&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's unaudited interim results and accounting treatment for the six months ended June 30, 2025 - The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[87](index=87&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[88](index=88&type=chunk) - As of June 30, 2025, the Company held no treasury shares[88](index=88&type=chunk) [Use of Proceeds from the Company's Initial Public Offering](index=29&type=section&id=Use%20of%20Proceeds%20from%20the%20Company%27s%20Initial%20Public%20Offering) The net proceeds from the initial public offering were approximately RMB 461 million, of which RMB 415 million (90%) was resolved in March 2025 to be reallocated for the construction and development of new campuses, and is expected to be fully utilized by December 31, 2025 - The net proceeds from the initial public offering were approximately **RMB 461 million**[89](index=89&type=chunk) - Approximately **RMB 415 million (90%)** was resolved in March 2025 to be reallocated for the construction and development of new campuses[89](index=89&type=chunk) - As of June 30, 2025, the **RMB 415 million** for new campus construction and development remained unutilized and is expected to be fully utilized by December 31, 2025[89](index=89&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=30&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be published and dispatched to shareholders who have opted to receive a printed version in due course - This interim results announcement has been published on the HKEX website and the Company's website[90](index=90&type=chunk) - The interim report will be published and dispatched to shareholders who have opted to receive a printed version in due course[90](index=90&type=chunk)

[Introduction & Financial Highlights](index=1&type=section&id=Introduction%20%26%20Financial%20Highlights) [Company Information & Announcement](index=1&type=section&id=Company%20Information%20%26%20Announcement) This announcement by Zhonggan Communication (Group) Holdings Limited discloses unaudited interim results for the six months ended June 30, 2025 - This is the unaudited condensed consolidated interim results announcement of Zhonggan Communication (Group) Holdings Limited (Stock Code: 2545) for the six months ended June 30, 2025[2](index=2&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue and profit declined significantly, with revenue down 32.7% and profit down 77.4% year-over-year Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB in thousands) | 2024 (RMB in thousands) | YoY Change (RMB in thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 159,689 | 237,283 | (77,594) | -32.7% | | Cost of sales | (133,485) | (185,951) | 52,466 | -28.2% | | Gross profit | 26,204 | 51,332 | (25,128) | -49.0% | | Other net income | 7,176 | 2,381 | 4,795 | 201.4% | | Selling expenses | (1,671) | (1,324) | (347) | 26.2% | | Administrative expenses | (15,521) | (20,540) | 5,019 | -24.4% | | Research and development expenses | (2,797) | (5,932) | 3,135 | -52.8% | | Profit from operations | 13,391 | 25,917 | (12,796) | -49.4% | | Finance costs | (9,046) | (7,683) | (1,363) | 17.7% | | Profit before tax | 4,345 | 18,234 | (13,889) | -76.2% | | Income tax | (150) | 356 | (506) | -142.1% | | Profit and total comprehensive income for the period | 4,195 | 18,590 | (14,395) | -77.4% | | Basic and diluted earnings per share (RMB yuan) | 0.01 | 0.04 | (0.03) | -75.0% | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets grew slightly, but a sharp increase in bank borrowings under current liabilities led to higher total liabilities and gearing ratio Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025 and December 31, 2024) | Indicator | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change (RMB in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Non-current assets | 94,227 | 92,492 | 1,735 | 1.9% | | Current assets | 1,322,025 | 1,309,068 | 12,957 | 1.0% | | **Total assets** | **1,416,252** | **1,401,560** | **14,692** | **1.0%** | | **Liabilities** | | | | | | Current liabilities | 986,402 | 975,878 | 10,524 | 1.1% | | Non-current liabilities | 1,751 | 1,778 | (27) | -1.5% | | **Total liabilities** | **988,153** | **977,656** | **10,497** | **1.1%** | | **Equity** | | | | | | Net assets | 428,099 | 423,904 | 4,195 | 1.0% | | Total equity | 428,099 | 423,904 | 4,195 | 1.0% | - Contract assets under current assets increased from RMB 961,682 thousand on December 31, 2024 to **RMB 1,010,558 thousand** on June 30, 2025[5](index=5&type=chunk) - Bank borrowings under current liabilities **increased significantly** from RMB 373,476 thousand on December 31, 2024 to **RMB 544,958 thousand** on June 30, 2025[5](index=5&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The interim financial statements were prepared in accordance with HKAS 34 and the Listing Rules of the Hong Kong Stock Exchange and were authorized for issue on August 28, 2025 - The financial statements are prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[7](index=7&type=chunk) - This interim report was authorized for issue on August 28, 2025[7](index=7&type=chunk) [Changes in Accounting Policies](index=5&type=section&id=Changes%20in%20Accounting%20Policies) The Group adopted amendments to HKAS 21, but the changes had no material impact as no relevant foreign currency transactions occurred - The Group has applied the amendments to HKAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability"[8](index=8&type=chunk) - The amendments had **no material impact** on this interim report as the Group did not have transactions settled in a foreign currency that was not exchangeable into another currency[8](index=8&type=chunk) [Revenue](index=6&type=section&id=Revenue) The Group's principal activities are telecommunication infrastructure, digital solutions, and maintenance services in China, with total revenue declining to RMB 159,689 thousand - The Group's principal activities are providing telecommunication infrastructure services, digital solutions services, and maintenance services in China[10](index=10&type=chunk) Revenue Breakdown (For the six months ended June 30) | Service Line | 2025 (RMB in thousands) | 2024 (RMB in thousands) | YoY Change (RMB in thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Telecommunication infrastructure construction services | 137,308 | 195,125 | (57,817) | -29.6% | | Telecommunication infrastructure maintenance services | 13,960 | 20,674 | (6,714) | -32.5% | | Digital integrated solutions services | 7,402 | 272 | 7,130 | 2621.3% | | Digital system maintenance services | 283 | 251 | 32 | 12.7% | | Digital software solutions services | 736 | 20,961 | (20,225) | -96.5% | | **Total** | **159,689** | **237,283** | **(77,594)** | **-32.7%** | | By timing of revenue recognition: Over time | 157,541 | 202,018 | (44,477) | -22.0% | | By timing of revenue recognition: At a point in time | 2,148 | 35,265 | (33,117) | -93.9% | [Other Net Income](index=7&type=section&id=Other%20Net%20Income) Other net income surged by 201.4% to RMB 7,176 thousand, primarily driven by new government grants, especially rewards for corporate listing Other Net Income (For the six months ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | YoY Change (RMB in thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest income | 228 | 380 | (152) | -40.0% | | Interest income from bank deposits | 221 | 10 | 211 | 2110.0% | | Government grants | 6,349 | 1,489 | 4,860 | 326.4% | | Rental income from investment properties less direct expenses | 501 | 320 | 181 | 56.6% | | Gain on disposal of property, plant and equipment and other financial assets | – | 15 | (15) | -100.0% | | Net foreign exchange (loss)/gain | (91) | 159 | (250) | -157.2% | | Others | (32) | 8 | (40) | -500.0% | | **Total** | **7,176** | **2,381** | **4,795** | **201.4%** | - Government grants primarily came from Jiangxi government authorities, including rewards for reducing corporate costs, optimizing the business environment, contributions to high-tech industry development, corporate listing rewards, and VAT refunds on software[12](index=12&type=chunk) [Profit Before Tax](index=8&type=section&id=Profit%20Before%20Tax) Profit before tax fell sharply to RMB 4,345 thousand, impacted by higher finance costs, lower staff and labor costs, and changes in impairment losses Items Deducted from Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | YoY Change (RMB in thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance costs | 9,046 | 7,683 | 1,363 | 17.7% | | Staff costs | 10,519 | 12,995 | (2,476) | -19.0% | | Depreciation | 1,806 | 1,166 | 640 | 54.9% | | Amortisation | 8 | – | 8 | - | | Impairment losses | 6,219 | 8,149 | (1,930) | -23.7% | | Labour costs | 123,787 | 173,985 | (50,198) | -28.9% | | Cost of inventories | 5,795 | 264 | 5,531 | 2095.1% | | Listing expenses | – | 6,447 | (6,447) | -100.0% | - The increase in finance costs was mainly due to **higher interest on bank borrowings**[13](index=13&type=chunk) - The decrease in labor costs was mainly due to the Group engaging labor suppliers to supplement the workforce for labor-intensive projects[13](index=13&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) The Group recorded an income tax expense of RMB 150 thousand, compared to a tax credit of RMB 356 thousand in the prior period, due to changes in current and deferred tax provisions Income Tax in the Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | YoY Change (RMB in thousands) | | :--- | :--- | :--- | :--- | | Current tax: Provision for the year | 2,700 | 20,041 | (17,341) | | Deferred tax: Origination and reversal of temporary differences | (2,550) | (20,397) | 17,847 | | **Total** | **150** | **(356)** | **506** | - Chinese subsidiaries are subject to a statutory corporate income tax rate of 25%, but companies qualifying as "High and New Technology Enterprises" enjoy a **preferential rate of 15%**[15](index=15&type=chunk) - Qualified R&D costs are eligible for a **super deduction**, with an additional 100% treated as deductible expenses for income tax purposes[15](index=15&type=chunk) [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share decreased significantly to RMB 0.01 from RMB 0.04 in the prior year, primarily due to lower profit attributable to equity holders Basic and Diluted Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB in thousands) | 4,195 | 18,590 | | Weighted average number of shares (shares) | 640,000,000 | 480,000,000 | | Basic and diluted earnings per share (RMB yuan) | 0.01 | 0.04 | - There were **no potential dilutive shares outstanding** for the six months ended June 30, 2025 and 2024[17](index=17&type=chunk) [Trade and Other Receivables](index=10&type=section&id=Trade%20and%20Other%20Receivables) Trade and other receivables, net of loss allowance, decreased to RMB 182,465 thousand as of June 30, 2025, mainly due to a reduction in current trade receivables Trade and Other Receivables (As of June 30, 2025 and December 31, 2024) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change (RMB in thousands) | | :--- | :--- | :--- | :--- | | Trade receivables, net of loss allowance (current) | 173,311 | 194,685 | (21,374) | | Trade receivables, net of loss allowance (non-current) | 4,945 | 4,822 | 123 | | Other receivables, net of loss allowance | 4,209 | 4,414 | (205) | | Amounts due from related parties | 1,112 | 112 | 1,000 | | Prepayments for labour services and hardware | 50,539 | 2,743 | 47,796 | | Deferred VAT refunds | 8,905 | 6,826 | 2,079 | | **Total** | **243,021** | **213,602** | **29,419** | Ageing Analysis of Trade Receivables (Net of Loss Allowance) | Ageing | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Within 6 months | 41,341 | 93,406 | | Over 6 months but within 12 months | 55,597 | 31,398 | | Over 12 months but within 18 months | 22,603 | 57,883 | | Over 18 months but within 24 months | 55,797 | 6,079 | | Over 24 months | 48,875 | 51,199 | | **Total trade receivables** | **224,213** | **239,965** | | Less: Loss allowance | (45,957) | (40,458) | | **Net amount** | **178,256** | **199,507** | - Prepayments for labor services and hardware **increased significantly**, mainly for project prepayments for procurement of labor and hardware[18](index=18&type=chunk)[20](index=20&type=chunk) [Trade and Other Payables](index=12&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased significantly to RMB 420,871 thousand as of June 30, 2025, primarily due to a reduction in trade payables to third parties Trade and Other Payables (As of June 30, 2025 and December 31, 2024) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change (RMB in thousands) | | :--- | :--- | :--- | :--- | | Trade payables - third parties | 297,376 | 454,338 | (156,962) | | Accrued payroll | 4,364 | 4,675 | (311) | | Amount due to a shareholder | 2,800 | 2,800 | 0 | | Amount due to an associate | 7,500 | 7,350 | 150 | | Other tax payables | 103,021 | 94,389 | 8,632 | | Other payables and accrued charges | 5,810 | 6,805 | (995) | | **Total** | **420,871** | **570,357** | **(149,486)** | Ageing Analysis of Trade Payables (As of June 30, 2025 and December 31, 2024) | Ageing | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Within 1 year | 165,599 | 311,847 | | Over 1 year but within 2 years | 72,597 | 85,597 | | Over 2 years but within 3 years | 17,783 | 24,373 | | Over 3 years | 41,397 | 32,521 | | **Total** | **297,376** | **454,338** | [Short-term Borrowings](index=13&type=section&id=Short-term%20Borrowings) The Group's total bank borrowings increased to RMB 544,958 thousand, with a significant rise in secured loans collateralized by various assets and guaranteed by related individuals Repayment of Bank Borrowings (As of June 30, 2025 and December 31, 2024) | Repayment Term | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Within 1 year or on demand | 544,958 | 373,476 | Security of Bank Borrowings (As of June 30, 2025 and December 31, 2024) | Type | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Unsecured bank borrowings | 105,097 | 90,123 | | Secured bank borrowings | 439,861 | 283,353 | | **Total** | **544,958** | **373,476** | - Bank borrowings were secured by property, plant and equipment, investment properties, trade receivables, contract assets, and bank deposits with a total carrying value of approximately **RMB 1,165.2 million**[24](index=24&type=chunk) - Certain bank borrowings were guaranteed by the Group's shareholders and their immediate family members, as well as key management personnel and their immediate family members[25](index=25&type=chunk) [Share Capital, Reserves and Dividends](index=14&type=section&id=Share%20Capital%2C%20Reserves%20and%20Dividends) The Group's share capital remained unchanged while reserves increased, and the Board did not declare an interim dividend for the period - Statutory reserves require Chinese subsidiaries to transfer 10% of net profit annually until the reserve reaches 50% of the registered capital, in accordance with PRC laws[26](index=26&type=chunk) - Other reserves represent the surplus of contributions made by shareholders of subsidiaries under the Group's reorganization[27](index=27&type=chunk) - **No dividend** was paid, declared, or proposed for the six months ended June 30, 2025[28](index=28&type=chunk) [Capital Commitments](index=14&type=section&id=Capital%20Commitments) The Group had no capital commitments as of December 31, 2024, and June 30, 2025 - The Group had **no capital commitments** as at December 31, 2024 and June 30, 2025[29](index=29&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Company Overview](index=15&type=section&id=Company%20Overview) Zhonggan Communication, listed on the Hong Kong Stock Exchange on July 3, 2024, is a Jiangxi-based integrated service provider and software developer - The Company was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on **July 3, 2024**[30](index=30&type=chunk) - The Group is a reputable integrated service provider and software developer headquartered in Jiangxi Province, China, specializing in telecommunication infrastructure and digital solutions services[30](index=30&type=chunk) [Business Review and Future Outlook](index=15&type=section&id=Business%20Review%20and%20Future%20Outlook) In H1 2025, the Group's successful bids grew 133% YoY to RMB 360 million, and it plans to expand its national presence and explore new business opportunities in digital solutions - Clients for telecommunication infrastructure services mainly include telecom network operators, telecom tower infrastructure service providers, local governments, quasi-governmental bodies, and state-owned enterprises[31](index=31&type=chunk) - Telecommunication infrastructure services include construction services (e.g., base station construction, transmission network pipeline services) and maintenance services (e.g., routine maintenance, repairs, and emergency troubleshooting)[31](index=31&type=chunk) - Digital solutions services aim to enhance operational efficiency by integrating hardware and software systems with digital technologies like IoT, cloud computing, big data, and AI[32](index=32&type=chunk) - In the first half of 2025, the Group's successful bids amounted to **RMB 360 million**, a **133% increase** compared to the first half of 2024[32](index=32&type=chunk) - Future outlook includes accelerating the national layout of telecommunication infrastructure services, expanding outside Jiangxi Province, and seeking more opportunities in informatization, artificial intelligence, and AI-related fields[32](index=32&type=chunk)[34](index=34&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) The period saw a sharp decline in revenue and net profit, driven by project completions and fewer digital solution contracts, while gross margin fell due to a shift in service mix [Revenue](index=18&type=section&id=Revenue_Financial_Review) Total revenue decreased by 32.7% YoY to RMB 159.7 million, mainly due to a 29.9% drop in telecommunication infrastructure services and a 60.8% drop in digital solutions services Revenue Breakdown by Business Segment (For the six months ended June 30) | Business Segment | 2025 (RMB in thousands) | 2025 (%) | 2024 (RMB in thousands) | 2024 (%) | YoY Change (RMB in thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Telecommunication infrastructure services | 151,268 | 94.7 | 215,799 | 90.9 | (64,531) | -29.9% | | - Infrastructure construction services | 137,308 | 86.0 | 195,125 | 82.2 | (57,817) | -29.6% | | - Infrastructure maintenance services | 13,960 | 8.7 | 20,674 | 8.7 | (6,714) | -32.5% | | Digital solutions services | 8,421 | 5.3 | 21,484 | 9.1 | (13,063) | -60.8% | | - Integrated solutions services | 7,402 | 4.6 | 272 | 0.1 | 7,130 | 2621.3% | | - System maintenance services | 283 | 0.2 | 251 | 0.1 | 32 | 12.7% | | - Software solutions services | 736 | 0.5 | 20,961 | 8.9 | (20,225) | -96.5% | | **Total** | **159,689** | **100.0** | **237,283** | **100.0** | **(77,594)** | **-32.7%** | - The decrease in telecommunication infrastructure services revenue was mainly due to the **substantial completion of several large-scale projects** and a limited number of newly awarded orders[38](index=38&type=chunk) - The decrease in digital solutions services revenue was mainly due to a **reduction in the number of software solutions service contracts** undertaken[39](index=39&type=chunk) [Cost of Sales](index=19&type=section&id=Cost%20of%20Sales) Cost of sales decreased by 28.2% year-over-year to RMB 133.5 million, which is in line with the decline in revenue - Cost of sales decreased from RMB 186.0 million to **RMB 133.5 million**, a decrease in line with the reduction in revenue[40](index=40&type=chunk) [Gross Profit and Gross Margin](index=19&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Total gross profit decreased by 49.0% to RMB 26.2 million, with the overall gross margin falling from 21.6% to 16.4% due to lower revenue from high-margin software services Gross Profit and Gross Margin by Business Segment (For the six months ended June 30) | Business Segment | 2025 Gross Profit (RMB in thousands) | 2025 Gross Margin (%) | 2024 Gross Profit (RMB in thousands) | 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Telecommunication infrastructure services | 24,761 | 16.4% | 30,254 | 14.0% | | - Infrastructure construction services | 21,246 | 15.5% | 25,431 | 13.0% | | - Infrastructure maintenance services | 3,515 | 25.2% | 4,823 | 23.3% | | Digital solutions services | 1,443 | 17.1% | 21,078 | 98.1% | | - Integrated solutions services | 1,184 | 16.0% | 7 | 2.6% | | - System maintenance services | 137 | 48.4% | 140 | 55.8% | | - Software solutions services | 122 | 16.6% | 20,931 | 99.9% | | **Total Gross Profit and Overall Gross Margin** | **26,204** | **16.4%** | **51,332** | **21.6%** | - The decrease in gross margin was primarily due to the **reduction in revenue from software solutions services**, which typically contribute a higher gross margin[43](index=43&type=chunk) [Other Net Income](index=20&type=section&id=Other%20Net%20Income_Financial_Review) Other net income increased significantly by 201.4% to RMB 7.2 million, mainly driven by a new government grant for corporate listing - Other net income increased from RMB 2.4 million to **RMB 7.2 million**, primarily due to a new government grant related to the corporate listing[44](index=44&type=chunk) [Selling Expenses](index=20&type=section&id=Selling%20Expenses) Selling expenses increased by 26.2% to RMB 1.7 million, mainly due to higher tender-related fees, staff costs, and travel expenses - Selling expenses increased from RMB 1.3 million to **RMB 1.7 million**, mainly due to increases in tender-related fees, staff costs, and travel expenses[45](index=45&type=chunk) [Administrative Expenses](index=20&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 24.4% to RMB 15.5 million, primarily due to lower professional service fees and credit impairment losses - Administrative expenses decreased from RMB 20.5 million to **RMB 15.5 million**, mainly due to a **RMB 4.5 million decrease** in professional service and consulting fees and a **RMB 1.5 million decrease** in credit impairment losses[46](index=46&type=chunk) [Research and Development Expenses](index=20&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased by 52.8% to RMB 2.8 million, primarily due to a reduction in labor costs for R&D personnel - R&D expenses decreased from RMB 5.9 million to **RMB 2.8 million**, mainly due to a reduction in labor costs for R&D personnel[47](index=47&type=chunk) [Finance Costs](index=21&type=section&id=Finance%20Costs) Finance costs increased by 17.7% to RMB 9.0 million, mainly due to higher interest expenses from an increased average bank borrowing balance in H1 2025 - Finance costs increased from RMB 7.7 million to **RMB 9.0 million**, due to higher bank interest expenses resulting from an increased average bank borrowing balance in H1 2025[48](index=48&type=chunk) [Income Tax Expense](index=21&type=section&id=Income%20Tax%20Expense_Financial_Review) The Group recorded an income tax expense of RMB 0.2 million for the period, compared to an income tax credit of RMB 0.4 million in the prior-year period - The Group recorded an income tax credit of RMB 0.4 million for the six months ended June 30, 2024, and an income tax expense of **RMB 0.2 million** for the six months ended June 30, 2025[49](index=49&type=chunk) [Net Profit for the Period](index=21&type=section&id=Net%20Profit%20for%20the%20Period) Net profit for the period decreased sharply by 77.4% to RMB 4.2 million, reflecting the combined impact of lower revenue and changes in costs - The Group's net profit decreased from RMB 18.6 million to **RMB 4.2 million**[50](index=50&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) The Group faces liquidity challenges with a net cash outflow from operations, reduced cash reserves, and a significant increase in bank borrowings, leading to a higher gearing ratio [Cash Flow from Operating Activities](index=21&type=section&id=Cash%20Flow%20from%20Operating%20Activities) The Group recorded a net cash outflow from operating activities of RMB 227.1 million for the period, primarily due to adverse working capital changes - The Group recorded a **net cash used in operating activities of RMB 227.1 million**[51](index=51&type=chunk) - The net cash outflow was mainly due to an increase in contract assets of approximately RMB 50.0 million, an increase in trade and other receivables of approximately RMB 35.0 million, and a decrease in trade and other payables of approximately RMB 149.6 million[51](index=51&type=chunk) [Cash and Bank Balances and Borrowings](index=22&type=section&id=Cash%20and%20Bank%20Balances%20and%20Borrowings) Cash and cash equivalents decreased by RMB 87.6 million to RMB 47.4 million, while bank borrowings increased by RMB 171.5 million to RMB 545.0 million - Cash and cash equivalents were approximately **RMB 47.4 million** as of June 30, 2025, a decrease of approximately RMB 87.6 million from December 31, 2024[52](index=52&type=chunk) - Bank borrowings increased by RMB 171.5 million from RMB 373.5 million on December 31, 2024 to **RMB 545.0 million** on June 30, 2025[52](index=52&type=chunk) [Gearing Ratio](index=22&type=section&id=Gearing%20Ratio) The gearing ratio increased from 0.9 times as of December 31, 2024, to 1.3 times as of June 30, 2025, mainly due to a higher average bank borrowing balance - As of June 30, 2025, the Group's gearing ratio was **1.3 times** (December 31, 2024: 0.9 times)[53](index=53&type=chunk) - The increase in the gearing ratio was mainly due to the **increase in the average balance of bank borrowings** in the first half of 2025[53](index=53&type=chunk) [Capital Structure](index=22&type=section&id=Capital%20Structure) The Company's share capital consists solely of ordinary shares, with an issued capital of HK$64,000,000 comprising 640,000,000 shares of HK$0.1 each - The Company's share capital consists only of ordinary shares, with an issued share capital of **HK$64,000,000** comprising 640,000,000 shares of HK$0.1 each[54](index=54&type=chunk) [Treasury Policy](index=23&type=section&id=Treasury%20Policy) The Group maintains a prudent treasury management policy, actively managing liquidity and regularly reviewing its capital structure to ensure a strong capital position - The Group adheres to a prudent treasury management policy and actively manages its liquidity to meet daily operational and future development funding needs[55](index=55&type=chunk) [Foreign Exchange Risk](index=23&type=section&id=Foreign%20Exchange%20Risk) The Group operates mainly in China with transactions denominated in RMB and currently does not engage in hedging activities but monitors foreign exchange exposure - The Group primarily operates in China with transactions denominated in RMB, and most cash and cash equivalents are held in RMB[56](index=56&type=chunk) - The Group **does not currently engage in hedging activities** aimed at managing foreign exchange risk[56](index=56&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments_Liquidity) The Group had no capital commitments as of December 31, 2024, and June 30, 2025 - The Group had **no capital commitments** as at December 31, 2024 and June 30, 2025[57](index=57&type=chunk) [Contingent Liabilities and Pledged Assets](index=23&type=section&id=Contingent%20Liabilities%20and%20Pledged%20Assets) The Group has no contingent liabilities but has pledged assets valued at approximately RMB 1,165.2 million to secure bank borrowings and facilities - The Group had **no contingent liabilities** as at December 31, 2024 and June 30, 2025[58](index=58&type=chunk) - Assets with a carrying value of approximately **RMB 1,165.2 million** were pledged to secure bank borrowings and banking facilities[58](index=58&type=chunk) [Material Investments, Acquisitions and Disposals](index=23&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) The Group did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2025 - During the six months ended June 30, 2025, the Group made **no material investments** and had no other material acquisitions or disposals of subsidiaries, associates, or joint ventures[59](index=59&type=chunk) [Future Plans for Material Investments](index=24&type=section&id=Future%20Plans%20for%20Material%20Investments) As of the announcement date, the Group has no other future plans for material investments or acquisitions of capital assets beyond what has been disclosed - As of the date of this announcement, other than as disclosed, the Group has **no other future plans for material investments** or acquisitions of capital assets[60](index=60&type=chunk) [Use of Proceeds from Global Offering](index=24&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds of approximately HK$141.9 million were reallocated on May 12, 2025, with HK$96.5 million utilized by June 30, 2025, and HK$45.4 million remaining for future use - The total net proceeds from the Global Offering were approximately **HK$141.9 million**[61](index=61&type=chunk) - On May 12, 2025, the Company announced the reallocation of the use of net proceeds and an extension of the timeline for their utilization[61](index=61&type=chunk) Use and Expected Timeline of Net Proceeds from the Global Offering | Use | Net Proceeds Disclosed in Prospectus (HK$ million) | Revised Allocation of Net Proceeds (HK$ million) | Utilized as of June 30, 2025 (HK$ million) | Unutilized as of June 30, 2025 (HK$ million) | Expected Timeline for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Selectively pursue strategic acquisitions | 89.4 | – | – | – | N/A | | Pay upfront costs for potential integrated solutions service projects | 22.0 | 32.0 | 12.0 | 20.0 | Before December 31, 2026 | | Enhance R&D capabilities | 24.6 | 45.4 | 20.0 | 25.4 | Before December 31, 2026 | | Repay bank borrowings | – | 39.4 | 39.4 | – | N/A | | General working capital | 5.9 | 15.0 | 15.0 | – | N/A | | **Total** | **141.9** | **131.8** | **86.4** | **45.4** | | [Other Information](index=25&type=section&id=Other%20Information) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 187 employees with total staff costs of RMB 10.5 million, offering competitive remuneration and regular training - As of June 30, 2025, the Group employed **187 employees** (June 30, 2024: 229)[63](index=63&type=chunk) - Total staff costs for the six months ended June 30, 2025, were **RMB 10.5 million** (Same period in 2024: RMB 13.0 million)[63](index=63&type=chunk) - The Group is committed to providing competitive remuneration and benefits and has policies for regular review of employee salaries and bonuses[63](index=63&type=chunk) [Retirement Benefit Plans](index=25&type=section&id=Retirement%20Benefit%20Plans) Employees of Chinese subsidiaries participate in state-managed retirement benefit plans, with the Group's sole obligation being to make the required contributions - Employees of the Chinese subsidiaries are members of a state-managed retirement benefit plan operated by the PRC government[64](index=64&type=chunk) - The Group's sole obligation for this retirement benefit plan is to make the required contributions[64](index=64&type=chunk) [Corporate Governance](index=26&type=section&id=Corporate%20Governance) The Company has complied with all applicable provisions of the Corporate Governance Code, and the Board justifies the dual role of Chairman and CEO for unified leadership - The Company has adopted and complied with all applicable code provisions under the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[65](index=65&type=chunk) - Mr. Liu Haoqiong currently serves as both the Chief Executive Officer and Chairman of the Company, which deviates from code provision C.2.1[66](index=66&type=chunk) - The Board believes that having the same person serve as both CEO and Chairman is beneficial for ensuring unified leadership and effective execution, with an appropriate balance of power structure in place[66](index=66&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=27&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code for securities dealings by directors and relevant employees, and all directors have confirmed their compliance - 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 as its code of conduct for securities dealings by directors and relevant employees[67](index=67&type=chunk) - All directors have confirmed that they complied with the required standards for dealings set out in the Model Code for the six months ended June 30, 2025[67](index=67&type=chunk) [Changes in Directors' Information under Listing Rules](index=27&type=section&id=Changes%20in%20Directors%27%20Information%20under%20Listing%20Rules) Several changes in director information occurred, including appointments and resignations from the nomination committee and changes in independent non-executive directors - Ms. Xie Xiaolan was appointed as a member of the Company's nomination committee, effective June 30, 2025[69](index=69&type=chunk) - Mr. Liu Dingli resigned as a member of the Company's nomination committee, effective June 30, 2025[69](index=69&type=chunk) - Mr. Li Yinguo retired as an independent non-executive director, effective June 27, 2025[69](index=69&type=chunk) - Mr. Zhao Hezhen was appointed as an independent non-executive director, effective June 27, 2025[69](index=69&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[70](index=70&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend_Other_Info) The Board of Directors 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[71](index=71&type=chunk) [Audit Committee and Review of Interim Results](index=28&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee has reviewed the Group's interim results and this announcement, confirming compliance with applicable accounting standards and listing rules - The Audit Committee consists of three independent non-executive directors, with Mr. Yu Shiyong as the chairman[72](index=72&type=chunk) - The Audit Committee has reviewed the Group's interim results and this announcement for the six months ended June 30, 2025[72](index=72&type=chunk) - The Audit Committee considers that the unaudited results comply with applicable accounting standards, the Listing Rules, and other legal requirements, and that adequate disclosures have been made[72](index=72&type=chunk) [Significant Events After Reporting Period](index=28&type=section&id=Significant%20Events%20After%20Reporting%20Period) No other significant events that could affect the Group have occurred after June 30, 2025, up to the date of this announcement - There were **no other significant events** that could affect the Group after June 30, 2025, and up to the date of this announcement[73](index=73&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=29&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement is available on the Company's and the Stock Exchange's websites, and the interim report will be dispatched and published in due course - This interim results announcement is published on the Company's website (www.gantongjt.com) and the Stock Exchange's website (www.hkexnews.hk)[74](index=74&type=chunk) - The interim report of the Group for the six months ended June 30, 2025, will be dispatched to the Company's shareholders and published on the above websites in due course[74](index=74&type=chunk) [Board of Directors Information](index=29&type=section&id=Board%20of%20Directors%20Information) As of the announcement date, the Board comprises six executive directors and three independent non-executive directors - The executive Directors are Mr. Liu Haoqiong, Mr. Peng Shengqian, Ms. Xie Xiaolan, Mr. Liu Dingli, Mr. Liu Dingyi, and Mr. Zhou Zhiqiang[76](index=76&type=chunk) - The independent non-executive Directors are Mr. Yu Shiyong, Mr. Zhu Yugang, and Mr. Zhao Hezhen[76](index=76&type=chunk)

[Important Notice](index=2&type=section&id=Important%20Notice) This semi-annual report contains forward-looking statements that do not constitute substantive commitments, and investors should be aware of risks [Overview](index=2&type=section&id=Important%20Notice-Overview) This semi-annual report contains forward-looking statements, does not constitute substantive commitments, and investors should be aware of risks; the board, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness; financial statements are prepared under Chinese accounting standards and are unaudited; the board decided against cash dividends, profit distribution, or capitalization issue for this period - Forward-looking statements in this semi-annual report do not constitute substantive commitments by the company to investors, who should maintain risk awareness[5](index=5&type=chunk) - The company's Board of Directors, Supervisory Board, and directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the report's content[6](index=6&type=chunk) - The financial report in this semi-annual report is prepared in accordance with Chinese Enterprise Accounting Standards and is unaudited[6](index=6&type=chunk) - The company's Board of Directors decided not to distribute cash dividends, profit, or convert capital reserves into share capital for the current reporting period[6](index=6&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines common terms used in the report, ensuring consistent understanding for readers [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This chapter provides definitions for common terms used in the report, including company names, reporting periods, stock types, and regulatory bodies, to ensure consistent understanding - The reporting period refers to the six months from January 1 to June 30, **2025**, and the prior corresponding period refers to the six months from January 1 to June 30, **2024**[8](index=8&type=chunk) - The company's controlling shareholder is China Railway Guangzhou Group Co., Ltd. (Guangzhou Railway Group), and the actual controller is China State Railway Group Co., Ltd. (China Railway Group)[8](index=8&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information, contact details, stock profile, and key financial performance metrics [I. Company Information](index=5&type=section&id=I.%20Company%20Information) Guangshen Railway Company Limited is a joint-stock company established in China, with Jiang Hui as its legal representative - The company's Chinese name is Guangshen Railway Company Limited, and its legal representative is Jiang Hui[10](index=10&type=chunk) [II. Contact Person and Information](index=5&type=section&id=II.%20Contact%20Person%20and%20Information) Company Secretary Tang Xiangdong and Securities Affairs Representative Deng Yanxia manage investor relations, with disclosed contact address, phone, and email - The Board Secretary is Tang Xiangdong, and the Securities Affairs Representative is Deng Yanxia, with contact phone and email disclosed[11](index=11&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=5&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) The company's registered and office addresses remain unchanged at No. 1052 Heping Road, Luohu District, Shenzhen, Guangdong Province - The company's registered and office addresses have not changed historically[12](index=12&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=6&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) The company designates several newspapers and websites for information disclosure, with no changes in disclosure or storage locations during the reporting period - The company designates multiple newspapers and websites for information disclosure, with no changes in information disclosure or document storage locations during the reporting period[13](index=13&type=chunk) [V. Company Stock Overview](index=6&type=section&id=V.%20Company%20Stock%20Overview) The company's A-shares are listed on the Shanghai Stock Exchange (stock code 601333), and H-shares are listed on the Hong Kong Stock Exchange (stock code 00525) Company Stock Overview | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-shares | SSE | Guangshen Railway | 601333 | | H-shares | HKEX | Guangshen Railway Shares | 00525 | [VI. Other Relevant Information](index=7&type=section&id=VI.%20Other%20Relevant%20Information) The company has appointed Deloitte Touche Tohmatsu Certified Public Accountants LLP as its accounting firm and Haiwen Law Firm as its legal counsel - The company has appointed Deloitte Touche Tohmatsu Certified Public Accountants LLP as its accounting firm, with Huang Tianyi and Chen Wanlin as signing accountants[14](index=14&type=chunk) - The company has appointed Beijing Haiwen (Shenzhen) Law Firm as its Chinese legal counsel and Haiwen Law Firm (Limited Liability Partnership) as its Hong Kong legal counsel[14](index=14&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=8&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 **2025**, the company's operating revenue increased by **8.08%** to **13.97 billion yuan**, and net profit attributable to shareholders increased by **21.55%** to **1.11 billion yuan** Key Accounting Data (H1 2025 vs. Prior Corresponding Period) | Key Accounting Data | Current Period (Jan-Jun) (RMB yuan) | Prior Corresponding Period (RMB yuan) | Change from Prior Corresponding Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 13,968,981,131 | 12,924,720,330 | 8.08 | | Total Profit | 1,388,551,911 | 1,273,716,090 | 9.02 | | Net Profit Attributable to Shareholders of the Listed Company | 1,108,915,456 | 912,281,244 | 21.55 | | Net Profit Attributable to Shareholders of the Listed Company Excluding Non-Recurring Gains and Losses | 1,058,194,826 | 901,055,681 | 17.44 | | Net Cash Flow from Operating Activities | 1,822,525,971 | 1,110,360,142 | 64.14 | Key Financial Indicators (H1 2025 vs. Prior Corresponding Period) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Corresponding Period | Change from Prior Corresponding Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.1565 | 0.1288 | 21.51 | | Diluted Earnings Per Share (yuan/share) | 0.1565 | 0.1288 | 21.51 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (yuan/share) | 0.1494 | 0.1272 | 17.45 | | Weighted Average Return on Net Assets (%) | 4.03 | 3.43 | Increased by 0.60 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 3.85 | 3.39 | Increased by 0.46 percentage points | [VIII. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=10&type=section&id=VIII.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Overseas%20Accounting%20Standards) The company reports no differences in accounting data under domestic and overseas accounting standards - The company has no differences in accounting data under domestic and overseas accounting standards[18](index=18&type=chunk) [IX. Non-Recurring Gains and Losses Items and Amounts](index=10&type=section&id=IX.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, total non-recurring gains and losses amounted to **50.72 million yuan**, primarily from government grants and disposal of non-current assets Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (RMB yuan) | | :--- | :--- | | Disposal gains/losses on non-current assets | 3,475,656 | | Government grants recognized in current profit or loss | 70,947,967 | | Other non-operating income and expenses | (4,621,668) | | Less: Income tax impact | 19,060,063 | | Impact on minority interests (after tax) | 21,262 | | Total | 50,720,630 | [Section III Board of Directors' Report (Including Management Discussion and Analysis)](index=11&type=section&id=Section%20III%20Board%20of%20Directors'%20Report%20%28Including%20Management%20Discussion%20and%20Analysis%29) This section provides a comprehensive discussion and analysis of the company's industry, main business, operating performance, financial position, and future outlook [I. Description of the Company's Industry and Main Business During the Reporting Period](index=11&type=section&id=I.%20Description%20of%20the%20Company's%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The railway industry, a national economic artery, saw growth in both passenger and freight volumes in H1 **2025**, with the company primarily operating railway passenger and freight transport services [(I) Industry Overview](index=11&type

[Corporate Information](index=2&type=section&id=Corporate%20Information) [Board of Directors and Committee Composition](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board members changed during the reporting period, with Mr. Du Yingyou and Mr. Chen Guanyong resigning, leading to corresponding adjustments in audit, remuneration, and nomination committee memberships - Executive Director Mr. Du Yingyou resigned on March 17, 2025[6](index=6&type=chunk)[8](index=8&type=chunk)[200](index=200&type=chunk) - Independent Non-executive Director Mr. Chen Guanyong resigned on May 22, 2025, and ceased to be a member of the Audit, Remuneration, and Nomination Committees[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk)[200](index=200&type=chunk) - Mr. Zhang Yao was appointed as a member of the Audit and Remuneration Committees on May 22, 2025, and as a member of the Nomination Committee on the same day[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - Ms. Liu Ping and Dr. Wang Yi were appointed as members of the Nomination Committee on June 19, 2025[7](index=7&type=chunk)[8](index=8&type=chunk) [Company Details](index=4&type=section&id=Company%20Details) Lecoo International Holdings Group Limited is registered in the Cayman Islands, with its headquarters in Guangzhou, China, and shares listed on the Hong Kong Stock Exchange - The company's registered office is in the Cayman Islands, with its headquarters and principal place of business in CITIC Plaza, Tianhe North Road, Guangzhou, China[9](index=9&type=chunk)[11](index=11&type=chunk)[20](index=20&type=chunk) - The principal place of business in Hong Kong is Wing Yip Centre, Queen's Road Central[9](index=9&type=chunk)[11](index=11&type=chunk)[20](index=20&type=chunk) - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, stock code 1529[10](index=10&type=chunk)[11](index=11&type=chunk)[21](index=21&type=chunk) [Unaudited Interim Results](index=5&type=section&id=Unaudited%20Interim%20Results) The company announced its unaudited consolidated results for the six months ended June 30, 2025, with comparative figures for the same period in 2024 - This announcement contains the full text of the Group's 2025 interim report, complying with relevant Listing Rules requirements for preliminary announcements of interim results[3](index=3&type=chunk) - The condensed consolidated financial statements for the six months ended June 30, 2025, are unaudited but have been reviewed by the company's Audit Committee[22](index=22&type=chunk)[23](index=23&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's revenue significantly grew by 96.1% to RMB 185.7 million in H1 2025, driven by transportation services, while loss for the period narrowed substantially to RMB 3.5 million Condensed Consolidated Statement of Profit or Loss Key Data (Six Months Ended June 30) | Indicator | 2025 H1 (RMB'000) | 2024 H1 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 185,656 | 94,701 | +96.1% | | Other income and net gains | 2,983 | 3,895 | -23.4% | | Loss on disposal of subsidiaries | (2,075) | – | N/A | | Employee benefits expenses | (26,848) | (36,793) | -27.0% | | Sub-contracting expenses | (137,789) | (48,070) | +186.6% | | Depreciation & Amortisation | (3,312) | (3,571) | -7.2% | | Impairment loss | (1,412) | – | N/A | | Finance costs | (523) | (2,145) | -75.6% | | Other expenses | (17,962) | (21,498) | -16.5% | | Loss before taxation | (1,282) | (13,463) | -90.5% | | Income tax (expense)/credit | (2,172) | 239 | N/A | | Loss for the period | (3,454) | (13,224) | -73.9% | | Attributable to Owners | (2,312) | (10,588) | -78.2% | | Attributable to Non-controlling interests | (1,142) | (2,636) | -56.7% | | Basic Loss per share (RMB cents) | (0.5445) | (7.6560) | -92.9% | - Loss for the period significantly narrowed by **73.9%**, primarily due to substantial revenue growth and reduced finance costs, employee benefits expenses, and other expenses[14](index=14&type=chunk)[126](index=126&type=chunk) - Basic loss per share decreased by **92.9%** from **RMB 7.6560 cents** in the same period of 2024 to **RMB 0.5445 cents** in H1 2025[14](index=14&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive expense for H1 2025 significantly decreased by 80.7% to RMB 2.9 million, mainly due to a narrower loss for the period and a favorable exchange difference Condensed Consolidated Statement of Comprehensive Income Key Data (Six Months Ended June 30) | Indicator | 2025 H1 (RMB'000) | 2024 H1 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period | (3,454) | (13,224) | -73.9% | | Other comprehensive income/(expense) | 598 | (1,604) | N/A | | Total comprehensive expense for the period | (2,856) | (14,828) | -80.7% | | Attributable to Owners | (1,714) | (12,192) | -85.9% | | Attributable to Non-controlling interests | (1,142) | (2,636) | -56.7% | - Total comprehensive expense for the period significantly decreased by **80.7%** from approximately **RMB 14.8 million** in the same period of 2024 to approximately **RMB 2.9 million** in H1 2025[15](index=15&type=chunk)[126](index=126&type=chunk) - Exchange differences arising from translation of overseas operations turned from an expense of **RMB 1.6 million** in H1 2024 to an income of **RMB 0.6 million** in H1 2025[15](index=15&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased by 7.5% to RMB 276.1 million, driven by a 41.9% rise in current assets, while total equity grew by 42.4% to RMB 190.0 million Condensed Consolidated Statement of Financial Position Key Data (As of June 30, 2025) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total non-current assets | 33,349 | 85,722 | -61.1% | | Total current assets | 242,719 | 171,105 | +41.9% | | Total assets | 276,068 | 256,827 | +7.5% | | **Equity** | | | | | Equity attributable to owners of the Company | 187,988 | 129,943 | +44.7% | | Non-controlling interests | 2,035 | 3,475 | -41.4% | | Total equity | 190,023 | 133,418 | +42.4% | | **Liabilities** | | | | | Total non-current liabilities | 723 | 12,696 | -94.3% | | Total current liabilities | 85,322 | 110,713 | -23.0% | | Total liabilities | 86,045 | 123,409 | -30.3% | - Total current assets increased by **41.9%** to **RMB 242.7 million**, primarily due to a significant increase in cash and cash equivalents[16](index=16&type=chunk) - Total non-current assets decreased by **61.1%** to **RMB 33.3 million**, mainly due to reduced deposits for property, plant and equipment purchases, and amortization of goodwill and intangible assets[16](index=16&type=chunk) - Total equity increased by **42.4%** to **RMB 190.0 million**, reflecting the impact of proceeds from the rights issue[16](index=16&type=chunk)[18](index=18&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners increased by 44.7% to RMB 188.0 million for H1 2025, primarily due to net proceeds from the rights issue, despite a loss for the period Condensed Consolidated Statement of Changes in Equity Key Data (Six Months Ended June 30) | Indicator | 2025 H1 (RMB'000) | 2024 H1 (RMB'000) | | :--- | :--- | :--- | | At beginning of period (audited) | 129,943 | 138,456 | | Loss for the period | (2,312) | (10,588) | | Exchange differences arising from translation of overseas operations | 598 | (1,604) | | Total comprehensive expense | (1,714) | (12,192) | | Proceeds from rights issue | 59,759 | – | | Reversal of non-controlling interests on disposal of subsidiaries | (298) | – | | Shares issued through placing | – | 16,474 | | At end of period (unaudited) | 187,988 | 142,738 | - Equity attributable to owners of the Company increased from approximately **RMB 129.9 million** as of January 1, 2025, to approximately **RMB 188.0 million** as of June 30, 2025[18](index=18&type=chunk) - The rights issue generated **RMB 59.8 million** in proceeds for the Group, significantly enhancing share capital[18](index=18&type=chunk) - Loss for the period was **RMB 2.3 million**, but this was offset by the proceeds from the rights issue, leading to an overall increase in total equity[18](index=18&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group's operating cash flow turned positive with a net inflow of RMB 20.3 million in H1 2025, and financing cash inflow surged by 732.4% to RMB 53.7 million, boosting cash and cash equivalents by 49.4% Condensed Consolidated Statement of Cash Flows Key Data (Six Months Ended June 30) | Indicator | 2025 H1 (RMB'000) | 2024 H1 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 20,345 | (25,694) | N/A (turned positive) | | Net cash (used in)/generated from investing activities | (664) | 25,450 | N/A (turned negative) | | Net cash generated from financing activities | 53,662 | 6,447 | +732.4% | | Net increase in cash and cash equivalents | 73,343 | 6,203 | +1082.4% | | Cash and cash equivalents at end of the period | 123,664 | 82,796 | +49.4% | - Net cash generated from operating activities turned from a net outflow of **RMB 25.7 million** in H1 2024 to a net inflow of **RMB 20.3 million** in H1 2025, indicating improved operational performance[19](index=19&type=chunk) - Net cash generated from financing activities significantly increased by **732.4%** to **RMB 53.7 million**, primarily influenced by the proceeds from the rights issue[19](index=19&type=chunk) - Cash and cash equivalents at the end of the period increased by **49.4%** to **RMB 123.7 million**[19](index=19&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [General Information](index=11&type=section&id=1.%20GENERAL%20INFORMATION) Lecoo International Holdings Group Limited is an investment holding company primarily engaged in transportation, warehousing, in-plant logistics, customized services, and sales of goat milk powder and other products - The company is an investment holding company, with principal activities including transportation, warehousing, in-plant logistics, customized services, and sales of goat milk powder and other products[21](index=21&type=chunk)[23](index=23&type=chunk) - The condensed consolidated financial statements are presented in RMB and have been reviewed by the Audit Committee but are unaudited by the company's auditor[22](index=22&type=chunk)[23](index=23&type=chunk) [Basis of Preparation and Accounting Policies](index=12&type=section&id=2.%20BASIS%20OF%20PREPARATION%20AND%20ACCOUNTING%20POLICIES) The condensed consolidated financial statements are prepared in accordance with HKFRSs, adopting all new and revised standards, with no significant impact from new standards this period - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and have adopted all relevant new and revised standards[24](index=24&type=chunk)[25](index=25&type=chunk)[27](index=27&type=chunk) - The new or revised standards adopted during the period had no significant impact on the Group's condensed consolidated interim financial information[26](index=26&type=chunk)[27](index=27&type=chunk) [Revenue](index=13&type=section&id=3.%20REVENUE) The Group's H1 2025 revenue surged by 96.1% to RMB 185.7 million, primarily driven by strong growth in transportation services, with goat milk powder sales as a new revenue stream Revenue by Service Type (Six Months Ended June 30) | Service Type | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Transportation services | 148,780 | 48,746 | +205.2% | | Warehousing services | 7,440 | 17,509 | -57.5% | | In-plant logistics services | 26,757 | 27,617 | -3.1% | | Customized services | 740 | 829 | -10.8% | | Sales of goat milk powder and other products | 1,939 | – | N/A | | **Total** | **185,656** | **94,701** | **+96.1%** | - Transportation services revenue significantly increased by **205.2%** to **RMB 148.8 million**, being the main contributor to total revenue growth[29](index=29&type=chunk) - Warehousing services revenue decreased by **57.5%**, while in-plant logistics services revenue slightly decreased by **3.1%**[29](index=29&type=chunk) - Sales of goat milk powder and other products is a new business in H1 2025, contributing **RMB 1.9 million** in revenue[29](index=29&type=chunk) [Segment Information](index=16&type=section&id=4.%20SEGMENT%20INFORMATION) The Group's operating segments include transportation, warehousing, in-plant logistics, customized services, and goat milk powder sales, with transportation services showing significant growth in H1 2025 Revenue and Results by Operating Segment (Six Months Ended June 30) | Segment | 2025 Revenue (RMB'000) | 2025 Segment Results (RMB'000) | 2024 Revenue (RMB'000) | 2024 Segment Results (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | Transportation services | 148,780 | 12,485 | 48,746 | 3,305 | | Warehousing services | 7,440 | (1,019) | 17,509 | (55) | | In-plant logistics services | 26,757 | 3,668 | 27,617 | 3,249 | | Customized services | 740 | 477 | 829 | 182 | | Sales of goat milk powder and other products | 1,939 | 48 | – | – | | **Total** | **185,656** | **15,659** | **94,701** | **6,681** | - The transportation services segment saw significant growth in both revenue and results, with segment results reaching **RMB 12.5 million** in H1 2025[40](index=40&type=chunk) - The warehousing services segment recorded a loss of **RMB 1.0 million** in H1 2025, compared to a slight loss in the same period of 2024[40](index=40&type=chunk) - Approximately **100%** (2024: approximately 96%) of the Group's revenue from external customers was derived from China[45](index=45&type=chunk)[47](index=47&type=chunk) [Other Income and Net Gains](index=19&type=section&id=5.%20OTHER%20INCOME%20AND%20NET%20GAINS) The Group's other income and net gains for H1 2025 amounted to RMB 3.0 million, a decrease from RMB 3.9 million in the prior year, mainly due to reduced interest income from loans receivable Other Income and Net Gains Details (Six Months Ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Bank deposit interest income | 205 | 313 | | Interest income from loans receivable | 1,055 | 1,676 | | Interest income on lease deposits | – | 17 | | Net exchange gains | 1,751 | 1,730 | | Others | (28) | 159 | | **Total** | **2,983** | **3,895** | - Interest income from loans receivable decreased from approximately **RMB 1.7 million** in H1 2024 to approximately **RMB 1.1 million** in H1 2025[49](index=49&type=chunk)[111](index=111&type=chunk) - Net exchange gains remained stable at approximately **RMB 1.75 million**[49](index=49&type=chunk) [Finance Costs](index=19&type=section&id=6.%20FINANCE%20COSTS) The Group's finance costs significantly decreased by 75.6% to RMB 0.5 million in H1 2025, primarily due to reduced bank loan interest following the disposal of Haihui Group Finance Costs Details (Six Months Ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Interest on bank borrowings | 260 | 1,470 | | Interest on lease liabilities | 263 | 675 | | **Total** | **523** | **2,145** | - Bank borrowing interest significantly decreased from approximately **RMB 1.5 million** in H1 2024 to approximately **RMB 0.3 million** in H1 2025[51](index=51&type=chunk)[121](index=121&type=chunk) - Interest on lease liabilities also decreased from approximately **RMB 0.7 million** in H1 2024 to approximately **RMB 0.3 million**[51](index=51&type=chunk) [Other Expenses](index=20&type=section&id=7.%20OTHER%20EXPENSES) The Group's total other expenses decreased by 16.5% to RMB 18.0 million in H1 2025, mainly due to reduced auditor's remuneration, entertainment, and other operating expenses, despite increased outsourced labor and fleet operating costs Other Expenses Details (Six Months Ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Auditor's remuneration | 380 | 1,364 | | Cost of inventories | 1,891 | – | | Entertainment expenses | 641 | 1,030 | | Lease payments relating to short-term leases | 2,009 | 2,861 | | Fleet operating expenses | 1,825 | 289 | | Insurance expenses | 315 | 301 | | Legal and professional fees | 2,139 | 1,357 | | Other taxes and surcharges | 269 | 156 | | Outsourced labor costs | 5,658 | 4,426 | | Repair and maintenance expenses | 224 | 899 | | Telephone and telecommunication charges | 177 | 185 | | Travel expenses | 435 | 714 | | Utilities expenses | 292 | 251 | | Other operating expenses | 1,707 | 7,665 | | **Total** | **17,962** | **21,498** | - Outsourced labor costs increased from approximately **RMB 4.4 million** in H1 2024 to approximately **RMB 5.7 million** in H1 2025[53](index=53&type=chunk) - Fleet operating expenses significantly increased from **RMB 0.3 million** to **RMB 1.8 million**[53](index=53&type=chunk) - Other operating expenses significantly decreased from approximately **RMB 7.7 million** in H1 2024 to approximately **RMB 1.7 million** in H1 2025[53](index=53&type=chunk) [Income Tax (Expense)/Credit](index=21&type=section&id=8.%20INCOME%20TAX%20(EXPENSE)%2FCREDIT) The Group recorded an income tax expense of RMB 2.2 million in H1 2025, compared to an income tax credit of RMB 0.2 million in the prior year, with Chinese subsidiaries not accruing corporate income tax due to tax losses Income Tax (Expense)/Credit Details (Six Months Ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | China corporate income tax — Current period | (2,172) | – | | China corporate income tax — Over-provision | – | 29 | | Other jurisdictions — Current period | – | (575) | | Deferred tax — Current period | – | 785 | | **Income tax (expense)/credit** | **(2,172)** | **239** | - Hong Kong profits tax is calculated at **16.5%**, but no provision was made as no income was generated in Hong Kong[54](index=54&type=chunk)[57](index=57&type=chunk) - China corporate income tax is calculated at **25%**, but one high-tech enterprise subsidiary enjoys a preferential tax rate of **15%**[55](index=55&type=chunk)[57](index=57&type=chunk) - Chinese-established subsidiaries did not accrue corporate income tax provision for the current and prior periods due to tax losses[55](index=55&type=chunk)[57](index=57&type=chunk) [Loss Per Share](index=22&type=section&id=9.%20LOSS%20PER%20SHARE) The Group's basic and diluted loss per share for H1 2025 was RMB 0.5445 cents, a significant reduction from RMB 7.6560 cents in H1 2024, due to narrower loss and increased weighted average shares from the rights issue Loss Per Share Calculation Data (Six Months Ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (2,312) | (10,588) | | Weighted average number of ordinary shares for basic loss per share | 424,599,431 | 138,297,073 | | Weighted average number of ordinary shares for diluted loss per share | 424,599,431 | 138,297,073 | | **Basic Loss per share (RMB cents)** | **(0.5445)** | **(7.6560)** | | **Diluted Loss per share (RMB cents)** | **(0.5445)** | **(7.6560)** | - Basic loss per share has been adjusted to reflect the bonus element in the rights issue in May 2025[61](index=61&type=chunk)[62](index=62&type=chunk) - The weighted average number of ordinary shares for the same period in 2024 has been retrospectively adjusted to reflect the share consolidation completed in November 2024[61](index=61&type=chunk)[62](index=62&type=chunk) - No share options were exercised, lapsed, cancelled, or forfeited, and no potential ordinary shares arose from share options for the six months ended June 30, 2025[61](index=61&type=chunk)[62](index=62&type=chunk) [Trade and Other Receivables](index=23&type=section&id=10.%20TRADE%20AND%20OTHER%20RECEIVABLES) As of June 30, 2025, the Group's current portion of trade and other receivables increased by 31.7% to RMB 107.0 million, mainly due to higher trade receivables from customer contracts Trade and Other Receivables Details (As of June 30, 2025) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade receivables from contracts with customers | 81,365 | 67,832 | | Prepayments | 15,301 | 8,439 | | Other receivables | 2,854 | 3,279 | | Lease deposits | 2,781 | 3,602 | | Loans receivable | 18,218 | 18,635 | | Less: Non-current portion — Loans receivable | (11,623) | (17,892) | | Less: Non-current portion — Lease deposits | (1,888) | (2,671) | | **Current portion** | **107,008** | **81,224** | Trade Receivables Ageing Analysis (As of June 30, 2025) | Ageing | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Within 30 days | 75,362 | 63,292 | | 31 to 90 days | 2,883 | 3,141 | | 91 to 180 days | 894 | 206 | | Over 180 days | 2,226 | 1,193 | | **Total** | **81,365** | **67,832** | - Trade receivables (net of impairment) increased by **20.0%** to **RMB 81.4 million**, with the largest portion due within 30 days[64](index=64&type=chunk)[66](index=66&type=chunk) - As of June 30, 2025, the Group's total outstanding loan principal was approximately **RMB 24.8 million**, comprising 3 corporate loans and 1 individual loan, with annual interest rates ranging from approximately **6% to 12%**, all unsecured[69](index=69&type=chunk)[70](index=70&type=chunk) [Trade and Other Payables](index=26&type=section&id=11.%20TRADE%20AND%20OTHER%20PAYABLES) As of June 30, 2025, the Group's total trade and other payables increased by 57.0% to RMB 75.8 million, primarily due to a significant rise in trade payables, with the largest portion due within 30 days Trade and Other Payables Details (As of June 30, 2025) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade payables | 71,659 | 38,695 | | Accrued employee benefits | 780 | 5,252 | | Other accrued expenses and other taxes payable | 489 | 1,829 | | Other payables | 2,902 | 2,518 | | **Total** | **75,830** | **48,294** | Trade Payables Ageing Analysis (As of June 30, 2025) | Ageing | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | 1 to 30 days | 40,785 | 28,757 | | 31 to 60 days | 11,558 | 4,012 | | 61 to 90 days | 17,890 | 1,616 | | Over 90 days | 1,426 | 4,310 | | **Total** | **71,659** | **38,695** | - Trade payables increased by **85.2%** from approximately **RMB 38.7 million** as of December 31, 2024, to approximately **RMB 71.7 million** as of June 30, 2025[71](index=71&type=chunk) - Credit terms granted by suppliers primarily range from **30 to 90 days**[72](index=72&type=chunk) [Share Capital](index=27&type=section&id=12.%20SHARE%20CAPITAL) The company completed a rights issue in May 2025, issuing 533,664,000 rights shares and raising net proceeds of approximately HK$67.6 million, significantly increasing total issued shares to 667,080,000 Share Capital Movement (As of June 30, 2025) | Indicator | Number of Shares | Share Capital (HK$) | | :--- | :--- | :--- | | Authorized share capital at January 1, 2024 | 10,000,000,000 | 100,000,000 | | Share consolidation | (9,000,000,000) | – | | Authorized share capital at June 30, 2025 | 1,000,000,000 | 100,000,000 | | Issued and fully paid at January 1, 2024 | 1,141,280,000 | 11,412,800 | | Shares issued through placing | 192,880,000 | 1,928,800 | | Share consolidation | (1,200,744,000) | – | | Issued and fully paid at January 1, 2025 | 133,416,000 | 13,341,600 | | Shares to be issued under rights issue | 533,664,000 | 53,366,400 | | **Issued and fully paid at June 30, 2025** | **667,080,000** | **66,708,000** | - On November 6, 2024, every ten shares of **HK$0.01** par value were consolidated into one share of **HK$0.10** par value[77](index=77&type=chunk) - The company completed a rights issue on May 16, 2025, issuing **533,664,000** rights shares and raising net proceeds of approximately **HK$67.6 million**[77](index=77&type=chunk)[78](index=78&type=chunk)[139](index=139&type=chunk) - As of June 30, 2025, the company had a total of **667,080,000** issued shares of **HK$0.1** par value[76](index=76&type=chunk)[140](index=140&type=chunk) [Disposal of Subsidiaries](index=29&type=section&id=13.%20DISPOSAL%20OF%20SUBSIDIARIES) The Group disposed of a 60% equity interest in Zhongshan Haihui Keqi Logistics (Group) Co., Ltd. for RMB 1 in January 2025, resulting in a recognized loss on disposal of approximately RMB 2.1 million - The Group entered into an agreement on December 20, 2024, to dispose of a **60%** equity interest in Zhongshan Haihui Keqi Logistics (Group) Co., Ltd. for a consideration of **RMB 1**[79](index=79&type=chunk)[83](index=83&type=chunk) - The buyer acquired the shareholder loan for **RMB 7,000,000**[80](index=80&type=chunk)[83](index=83&type=chunk) - The disposal was approved by an extraordinary general meeting of shareholders on January 27, 2025, and a loss on disposal of approximately **RMB 2.1 million** was recognized for the period ended June 30, 2025[82](index=82&type=chunk)[83](index=83&type=chunk)[115](index=115&type=chunk) [Dividend](index=30&type=section&id=14.%20DIVIDEND) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil) - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[85](index=85&type=chunk)[87](index=87&type=chunk) [Events After the Reporting Period](index=30&type=section&id=15.%20EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) On July 8, 2025, the Group acquired 100% equity of Bozhou Lelaohao Pharmaceutical Co., Ltd. for RMB 900,000 to diversify into pharmaceutical wholesale and medical device sales - On July 8, 2025, the Group acquired **100%** equity interest in Bozhou Lelaohao Pharmaceutical Co., Ltd. for a total consideration of **RMB 900,000**[86](index=86&type=chunk)[88](index=88&type=chunk) - The target company is primarily engaged in wholesale and distribution of pharmaceuticals, sales of Class I and Class II medical devices, and wholesale of protective medical supplies for healthcare personnel[86](index=86&type=chunk)[88](index=88&type=chunk) - Upon completion of the acquisition, the target company became an indirect wholly-owned subsidiary of the company, and its financial results will be consolidated[86](index=86&type=chunk)[88](index=88&type=chunk) [Management Discussion and Analysis](index=31&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=31&type=section&id=BUSINESS%20REVIEW) In H1 2025, the Group's revenue significantly increased amidst China's logistics sector recovery, validating its strategic transformation, while strict cost controls helped narrow net losses despite market challenges - The Group is a logistics service provider in China, offering transportation, warehousing, in-plant logistics, customized services, and sales of goat milk powder[90](index=90&type=chunk)[93](index=93&type=chunk) - In H1 2025, China's total social logistics volume grew by **5.6%** year-on-year, indicating a continuous recovery in the logistics industry, which presented opportunities for the Group[92](index=92&type=chunk)[94](index=94&type=chunk) - The Group's revenue significantly increased compared to the same period last year, confirming the success of its strategic transformation, primarily through expanding high-value customer relationships and strengthening its core hub network[92](index=92&type=chunk)[94](index=94&type=chunk) - Challenges included weakened manufacturing investment sentiment, significantly increased outsourcing costs, and rising diesel prices due to international crude oil price fluctuations[95](index=95&type=chunk)[97](index=97&type=chunk) - Through strict cost control measures, optimizing organizational efficiency, reducing payroll and administrative costs, and implementing digital approval and centralized procurement, the Group's net loss significantly narrowed[96](index=96&type=chunk)[97](index=97&type=chunk) [Outlook](index=33&type=section&id=OUTLOOK) For H2 2025, China's logistics and warehousing sector will continue its intelligent transformation, offering growth in cold chain and pharmaceutical logistics, while the Group plans to optimize its network, introduce smart equipment, and diversify into goat milk products and traditional Chinese medicine logistics - China's logistics and warehousing industry is expected to continue structural growth, driven by government policies and market demand[98](index=98&type=chunk)[100](index=100&type=chunk) - Intelligent upgrades, improved urban-rural distribution networks, and emerging sectors like cold chain and pharmaceutical logistics will create development opportunities[98](index=98&type=chunk)[100](index=100&type=chunk) - The industry faces challenges such as supply-demand imbalance in warehousing facilities, energy price volatility, labor shortages, and accelerating market consolidation[99](index=99&type=chunk)[101](index=101&type=chunk) - The Group will implement an innovation-driven, efficiency-centric strategy, optimizing its warehousing network and introducing smart equipment and digital management platforms[102](index=102&type=chunk)[103](index=103&type=chunk) - To diversify its business, the Group commenced goat milk product operations in Inner Mongolia at the end of 2024 and began selling goat milk powder in H1 2025[102](index=102&type=chunk)[103](index=103&type=chunk) - The Group will deepen cooperation with Traditional Chinese Medicine stakeholders to develop storage and distribution services for TCM products, including developing logistics facilities on its Fuzhou land use rights[102](index=102&type=chunk)[103](index=103&type=chunk) [Financial Review](index=35&type=section&id=FINANCIAL%20REVIEW) The Group's H1 2025 financial performance significantly improved, with substantial revenue growth and a narrower loss. Transportation services were the main growth driver, and the goat milk powder business was a new contributor. Cost control measures effectively reduced employee benefits and finance costs, but sub-contracting expenses increased due to business expansion [Revenue](index=35&type=section&id=Revenue) The Group's H1 2025 revenue surged by 96.1% to RMB 185.7 million, primarily driven by a 205.5% increase in transportation services revenue and expansion into new regions, with goat milk powder sales as a new revenue source - For the six months ended June 30, 2025, the Group's revenue significantly increased by **96.1%** to approximately **RMB 185.7 million**[104](index=104&type=chunk) - Transportation services revenue increased by **205.5%** to approximately **RMB 148.8 million**, benefiting from the recovery in domestic logistics service demand in China and business expansion into Hangzhou and Inner Mongolia[104](index=104&type=chunk) - Warehousing services revenue decreased by **57.7%** to approximately **RMB 7.4 million**, mainly due to reduced demand after the disposal of Haihui Group[105](index=105&type=chunk)[107](index=107&type=chunk) - Starting from H1 2025, the Group commenced sales of goat milk powder and other products in Inner Mongolia Autonomous Region, contributing approximately **RMB 1.9 million** in revenue[110](index=110&type=chunk)[113](index=113&type=chunk) [Other income and net gains](index=36&type=section&id=Other%20income%20and%20net%20gains) The Group's other income and net gains for H1 2025 were approximately RMB 3.0 million, a decrease from the prior year, mainly due to a reduction of approximately RMB 0.6 million in interest income from loans receivable - Net gains of approximately **RMB 3.0 million** were recognized for the six months ended June 30, 2025 (2024: approximately **RMB 3.9 million**)[111](index=111&type=chunk)[114](index=114&type=chunk) - This was primarily due to a decrease of approximately **RMB 0.6 million** in interest income from loans receivable during the period[111](index=111&type=chunk)[114](index=114&type=chunk) [Loss on disposal of subsidiaries](index=36&type=section&id=Loss%20on%20disposal%20of%20subsidiaries) The Group recognized a loss on disposal of approximately RMB 2.1 million for the period ended June 30, 2025, due to the disposal of a 60% equity interest in Zhongshan Haihui Keqi Logistics (Group) Co., Ltd - A loss on disposal of approximately **RMB 2.1 million** was recognized for the period ended June 30, 2025, due to the disposal of a **60%** equity interest in Zhongshan Haihui Keqi Logistics (Group) Co., Ltd.[112](index=112&type=chunk)[115](index=115&type=chunk) [Employee benefits expenses](index=37&type=section&id=Employee%20benefits%20expenses) The Group's employee benefits expenses decreased by 27.0% to approximately RMB 26.8 million in H1 2025, mainly due to strict cost control measures and reduced labor costs after the disposal of Haihui Group - Employee benefits expenses were approximately **RMB 26.8 million** for the six months ended June 30, 2025 (2024: approximately **RMB 36.8 million**)[116](index=116&type=chunk)[118](index=118&type=chunk) - The decrease was primarily due to strict cost control measures implemented by the Group's subsidiaries and reduced labor costs following the disposal of Haihui Group during the period[116](index=116&type=chunk)[118](index=118&type=chunk) [Sub-contracting expenses](index=37&type=section&id=Sub-contracting%20expenses) The Group's sub-contracting expenses significantly increased by 186.6% to approximately RMB 137.8 million in H1 2025, driven by higher revenue and increased demand for outsourced local transportation and international freight forwarding services - Sub-contracting expenses were approximately **RMB 137.8 million** for the six months ended June 30, 2025 (2024: approximately **RMB 48.1 million**)[117](index=117&type=chunk)[119](index=119&type=chunk) - The significant increase in sub-contracting expenses was primarily due to higher revenue during the period and increased customer orders for local transportation services and international freight forwarding services[117](index=117&type=chunk)[119](index=119&type=chunk) [Depreciation of right-of-use assets](index=38&type=section&id=Depreciation%20of%20right-of-use%20assets) The Group's depreciation of right-of-use assets was approximately RMB 3.0 million in H1 2025, a slight decrease from the prior year, mainly related to leases for warehouses, office properties, and plant machinery - Depreciation of right-of-use assets was approximately **RMB 3.0 million** for the six months ended June 30, 2025 (2024: approximately **RMB 3.2 million**)[120](index=120&type=chunk)[123](index=123&type=chunk) - Right-of-use assets include leases for warehouses, office properties, temporary staff dormitories, and plant machinery such as forklifts[120](index=120&type=chunk)[123](index=123&type=chunk) [Finance costs](index=38&type=section&id=Finance%20costs) The Group's finance costs significantly decreased by 75.6% to approximately RMB 0.5 million in H1 2025, primarily due to reduced bank loan interest following the disposal of Haihui Group in January 2025 - Finance costs decreased from approximately **RMB 2.1 million** in H1 2024 to approximately **RMB 0.5 million** in H1 2025[121](index=121&type=chunk)[124](index=124&type=chunk) - This was primarily attributable to reduced bank loan interest following the disposal of Haihui Group in January 2025[121](index=121&type=chunk)[124](index=124&type=chunk) [Other expenses](index=38&type=section&id=Other%20expenses) The Group's total other expenses were approximately RMB 18.0 million in H1 2025, a decrease from RMB 21.5 million in the prior year, primarily comprising outsourced labor costs, short-term lease payments, and legal and professional fees - Other expenses were approximately **RMB 18.0 million** for the six months ended June 30, 2025 (2024: approximately **RMB 21.5 million**)[122](index=122&type=chunk)[125](index=125&type=chunk) - Key expense items include outsourced labor costs, short-term lease-related payments, auditor's remuneration, legal and professional fees, fleet vehicle operating expenses, and inventory costs[122](index=122&type=chunk)[125](index=125&type=chunk) [Loss and total comprehensive expense for the period](index=39&type=section&id=Loss%20and%20total%20comprehensive%20expense%20for%20the%20period) The Group's loss for the period and total comprehensive expense for H1 2025 significantly narrowed to approximately RMB 3.5 million and RMB 2.9 million, respectively, from RMB 13.2 million and RMB 14.8 million in H1 2024 - Loss for the period was approximately **RMB 3.5 million** for the six months ended June 30, 2025 (2024: approximately **RMB 13.2 million**)[126](index=126&type=chunk)[129](index=129&type=chunk) - Total comprehensive expense for the period was approximately **RMB 2.9 million** (2024: approximately **RMB 14.8 million**)[126](index=126&type=chunk)[129](index=129&type=chunk) [Liquidity and Financial Resources](index=39&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) As of June 30, 2025, the Group had net current assets of approximately RMB 157.4 million and cash and cash equivalents of RMB 123.7 million, primarily denominated in HKD and RMB, with the directors confirming sufficient financial resources - As of June 30, 2025, the Group's net current assets were approximately **RMB 157.4 million** (December 31, 2024: approximately **RMB 60.4 million**)[127](index=127&type=chunk)[130](index=130&type=chunk) - Cash and cash equivalents were approximately **RMB 123.7 million** (December 31, 2024: approximately **RMB 49.7 million**), primarily denominated in HKD and RMB[127](index=127&type=chunk)[130](index=130&type=chunk) - The directors confirm that the Group will have sufficient financial resources to meet its liabilities as they fall due in the foreseeable future[127](index=127&type=chunk)[130](index=130&type=chunk) [Funding and Treasury Policies](index=39&type=section&id=FUNDING%20AND%20TREASURY%20POLICIES) The Group's funding and treasury policies aim to ensure sufficient financial resources for business and investment activities, prudently manage financial risks like interest rate and foreign exchange risks, and maintain a robust balance sheet with ample liquidity - The Group's policy aims to ensure sufficient financial resources to support business and investment activities and to prudently and effectively manage financial risks[128](index=128&type=chunk)[131](index=131&type=chunk) - Interest rate risk and foreign exchange risk are managed through the use of financial instruments and risk management strategies[128](index=128&type=chunk)[131](index=131&type=chunk) - The Group is committed to maintaining a robust balance sheet and ample liquidity to enhance financial flexibility and resilience[128](index=128&type=chunk)[131](index=131&type=chunk) [Gearing Ratio](index=40&type=section&id=GEARING%20RATIO) As of June 30, 2025, the Group was in a net cash position, rendering the gearing ratio not applicable (December 31, 2024: 4.9%) - The Group monitors its capital based on the percentage of net debt to equity attributable to owners of the Company[132](index=132&type=chunk)[137](index=137&type=chunk) - As of June 30, 2025, the Group was in a net cash position as the amount of time deposits and cash and cash equivalents exceeded the amount of bank and other borrowings and lease liabilities[133](index=133&type=chunk)[137](index=137&type=chunk) - Therefore, the gearing ratio was not applicable as of June 30, 2025 (December 31, 2024: **4.9%**)[133](index=133&type=chunk)[137](index=137&type=chunk) [Capital Structure](index=40&type=section&id=CAPITAL%20STRUCTURE) The Group's capital structure comprises issued share capital and reserves, with no change in authorized share capital as of June 30, 2025, and a rights issue in May 2025 raising HK$67.6 million and increasing issued shares to 667,080,000 - The Group's capital structure comprises issued share capital and reserves, with the Board of Directors regularly reviewing the capital structure[134](index=134&type=chunk)[138](index=138&type=chunk) - For the six months ended June 30, 2025, there was no change in the company's authorized share capital of **HK$100,000,000**[135](index=135&type=chunk)[138](index=138&type=chunk) - The company completed a rights issue on May 16, 2025, issuing **533,664,000** rights shares and raising net proceeds of approximately **HK$67.6 million**[139](index=139&type=chunk)[145](index=145&type=chunk) - Upon completion of the rights issue, as of June 30, 2025, the company had a total of **667,080,000** issued shares of **HK$0.1** par value[140](index=140&type=chunk)[145](index=145&type=chunk) [Foreign Currency Exposure](index=41&type=section&id=FOREIGN%20CURRENCY%20EXPOSURE) The Group's operations are primarily RMB-denominated in China, but some subsidiaries face foreign exchange risk from foreign currency sales and purchases, with no current hedging policy, though the Board monitors and considers hedging significant exposures - The Group's business activities are primarily conducted in China and mainly denominated in RMB[141](index=141&type=chunk)[146](index=146&type=chunk) - Certain subsidiaries have sales and purchases denominated in foreign currencies, exposing the Group to foreign exchange risk[141](index=141&type=chunk)[146](index=146&type=chunk) - The Group currently has no foreign currency hedging policy, but the directors will continue to monitor relevant foreign exchange risks and consider hedging when necessary[141](index=141&type=chunk)[146](index=146&type=chunk) [Charge on the Group's Assets](index=41&type=section&id=CHARGE%20ON%20THE%20GROUP'S%20ASSETS) As of June 30, 2025, the Group had no assets charged, other than those disclosed in this report - As of June 30, 2025, the Group had no charged assets[142](index=142&type=chunk)[147](index=147&type=chunk) [Contingent Liabilities](index=41&type=section&id=CONTINGENT%20LIABILITIES) As of June 30, 2025, the Group had no significant contingent liabilities, other than those disclosed in this report - As of June 30, 2025, the Group had no significant contingent liabilities[143](index=143&type=chunk)[148](index=148&type=chunk) [Capital Commitments](index=41&type=section&id=CAPITAL%20COMMITMENTS) As of June 30, 2025, the Group had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments[144](index=144&type=chunk)[149](index=149&type=chunk) [Significant Investments, Material Acquisitions and Disposals of Subsidiaries and Affiliated Companies](index=42&type=section&id=SIGNIFICANT%20INVESTMENTS,%20MATERIAL%20ACQUISITIONS%20AND%20DISPOSALS%20OF%20SUBSIDIARIES%20AND%20AFFILIATED%20COMPANIES) For the six months ended June 30, 2025, the Group had no significant investments, material acquisitions, or disposals of subsidiaries and affiliated companies, other than those disclosed in this report - For the six months ended June 30, 2025, the Group had no significant investments, material acquisitions, or disposals of subsidiaries and affiliated companies (other than those disclosed elsewhere in this report)[150](index=150&type=chunk)[153](index=153&type=chunk) [Employees and Remuneration Policies](index=42&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICIES) As of June 30, 2025, the Group employed 574 full-time employees, with remuneration based on qualifications, responsibilities, contributions, and market conditions, offering retirement plans and share options, alongside training - As of June 30, 2025, the Group employed **574** full-time employees (June 30, 2024: **640** employees)[151](index=151&type=chunk)[154](index=154&type=chunk) - Employee remuneration is determined based on factors such as qualifications, responsibilities, contributions, work experience, prevailing market conditions, and the Group's remuneration policy[151](index=151&type=chunk)[154](index=154&type=chunk) - Employee benefits include contributions to retirement schemes and share options under the company's share option scheme, with both on-the-job and sponsored external training provided[151](index=151&type=chunk)[154](index=154&type=chunk) [Future Plans for Material Investments or Capital Assets](index=42&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, other than those disclosed in this report - As of June 30, 2025, the Group had no specific future plans for material investments or capital assets (other than those disclosed elsewhere in this report)[152](index=152&type=chunk)[155](index=155&type=chunk) [Use of Proceeds](index=43&type=section&id=USE%20OF%20PROCEEDS) The Group detailed the use of proceeds from new share placements in 2023 and 2024, and the 2025 rights issue, with the 2023 proceeds reallocated to TCM business and general working capital, and 2025 proceeds for working capital, goat milk products, and TCM logistics park facilities [Use of proceeds from placing of new shares](index=43&type=section&id=Use%20of%20proceeds%20from%20placing%20of%20new%20shares) Net proceeds of approximately HK$34.2 million from the 2023 placement, with HK$30.0 million originally for smart logistics, were reallocated on July 25, 2025, to TCM business and general working capital; 2024 placement net proceeds of HK$18.5 million include HK$7.7 million for logistics infrastructure Use of Net Proceeds from 2023 Placing (As of June 30, 2025) | Intended Use | Unutilized as of Dec 31, 2024 (HK$'million) | Actual Utilized during the Period (HK$'million) | Unutilized as of June 30, 2025 (HK$'million) | | :--- | :--- | :--- | :--- | | Development of smart logistics services business | 30.0 | – | 30.0 | - Net proceeds from the 2023 placing were approximately **HK$34.2 million**, with **HK$30.0 million** unutilized[156](index=156&type=chunk)[158](index=158&type=chunk) - On July 25, 2025, the Board decided to change the use of unutilized net proceeds from the 2023 placing from 'development of smart logistics services business' to 'development of Traditional Chinese Medicine business' and general working capital[159](index=159&type=chunk) Use of Net Proceeds from 2024 Placing (As of June 30, 2025) | Intended Use | Unutilized as of Dec 31, 2024 (HK$'million) | Actual Utilized during the Period (HK$'million) | Unutilized as of June 30, 2025 (HK$'million) | | :--- | :--- | :--- | :--- | | Investment in logistics business infrastructure | 7.7 | – | 7.7 | - Net proceeds from the 2024 placing were approximately **HK$18.5 million**, with **HK$7.7 million** allocated for infrastructure investment in logistics business, expected to be utilized by December 31, 2026[160](index=160&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [Use of proceeds from Rights Issue](index=45&type=section&id=Use%20of%20proceeds%20from%20Rights%20Issue) The company completed a rights issue on May 16, 2025, issuing 533,664,000 rights shares and raising net proceeds of approximately HK$67.6 million, allocated for general working capital, Inner Mongolia goat milk product business, and construction of TCM logistics park facilities in Jiangxi, China - The company proposed a rights issue on February 14, 2025, to issue up to **533,664,000** rights shares at a subscription price of **HK$0.13** per share, raising approximately **HK$69.4 million** (before expenses)[164](index=164&type=chunk)[168](index=168&type=chunk) - The rights issue was completed on May 16, 2025, with all **533,664,000** rights shares fully subscribed, raising net proceeds of approximately **HK$67.6 million**[139](index=139&type=chunk)[170](index=170&type=chunk)[172](index=172&type=chunk) Use of Net Proceeds from Rights Issue (As of June 30, 2025) | Intended Use | Intended Use (HK$'million) | Actual Utilized during the Period (HK$'million) | Unutilized as of June 30, 2025 (HK$'million) | | :--- | :--- | :--- | :--- | | General working capital | 27.6 | 26.7 | 0.9 | | Development of goat milk product business in Inner Mongolia Autonomous Region | 20.0 | 15.3 | 4.7 | | Construction of warehouses and/or other logistics-related facilities in the Traditional Chinese Medicine Logistics Industrial Park in Jiangxi Province, China | 20.0 | 20.0 | – | - The proceeds will be used for general working capital, developing the goat milk product business in Inner Mongolia, and constructing warehouses and other logistics-related facilities in the Traditional Chinese Medicine Logistics Industrial Park in Jiangxi Province, China[175](index=175&type=chunk) [Corporate Governance and other Information](index=48&type=section&id=Corporate%20Governance%20and%20other%20Information) [Share Option Scheme](index=48&type=section&id=SHARE%20OPTION%20SCHEME) The company adopted a new share option scheme in November 2023, replacing the previous one, with no options granted or outstanding as of June 30, 2025 - The company adopted a new share option scheme on November 23, 2023, replacing the previous share option scheme[176](index=176&type=chunk)[180](index=180&type=chunk) - Under the new share option scheme, the Board may invite employees, directors, consultants, etc., to subscribe for shares, up to **10%** of the issued shares on the listing date[177](index=177&type=chunk)[180](index=180&type=chunk) - As of June 30, 2025, no share options had been granted, exercised, cancelled, or lapsed under the new share option scheme, and no share options remained outstanding[182](index=182&type=chunk)[184](index=184&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=49&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, no directors, chief executive, or their associates held any disclosable interests or short positions in the company's or any associated corporation's shares, underlying shares, or debentures under the SFO - As of June 30, 2025, no directors, chief executive, or their associates had any interests or short positions in the shares, underlying shares, or debentures of the company or any associated corporation that were required to be disclosed under the Securities and Futures Ordinance[183](index=183&type=chunk)[185](index=185&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=50&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%20AND%20UNDERLYING%20SHARES) As of June 30, 2025, to the best knowledge of the directors, no person (other than a director or chief executive) held any disclosable interests or short positions in the company's shares or underlying shares under the SFO - As of June 30, 2025, to the best knowledge of the directors, no person (other than a director or the chief executive of the company) had or was deemed to have any interests or short positions in the shares or underlying shares that were required to be disclosed under the Securities and Futures Ordinance[186](index=186&type=chunk)[189](index=189&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=50&type=section&id=DIRECTORS'%20RIGHTS%20TO%20ACQUIRE%20SHARES%20OR%20DEBENTURES) Other than as disclosed in the share option scheme, for the six months ended June 30, 2025, neither the company nor its subsidiaries participated in any arrangements enabling directors to acquire benefits by acquiring shares or debentures of the company or any other body corporate - Other than as disclosed in the share option scheme, for the six months ended June 30, 2025, neither the company nor any of its subsidiaries was a party to any arrangement to enable the directors to acquire benefits by means of the acquisition of shares in or debentures of the company or any other body corporate[187](index=187&type=chunk)[190](index=190&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=50&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%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, and the company held no treasury shares - 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[191](index=191&type=chunk) - As of June 30, 2025, the company held no treasury shares[191](index=191&type=chunk) [Corporate Governance](index=51&type=section&id=CORPORATE%20GOVERNANCE) The Board is committed to maintaining high corporate governance standards, having adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, and confirms compliance with its code provisions during the reporting period - The Board is committed to maintaining a high level of corporate governance to uphold the Group's transparency and safeguard shareholders' interests[192](index=192&type=chunk)[196](index=196&type=chunk) - The company has adopted the principles and code provisions of the Corporate Governance Code and Corporate Governance Report as set out in Appendix C1 to the Listing Rules[192](index=192&type=chunk)[196](index=196&type=chunk) - To the best knowledge of the Board, the company has complied with the code provisions of the Corporate Governance Code for the six months ended June 30, 2025, and up to the date of this report[193](index=193&type=chunk)[196](index=196&type=chunk) [Competing Interests](index=51&type=section&id=COMPETING%20INTERESTS) For the six months ended June 30, 2025, to the best knowledge of the directors, no director, substantial shareholder, or their associates had any business or interest directly or indirectly competing with the Group's business, nor any other conflicts of interest with the company - For the six months ended June 30, 2025, to the best knowledge of the directors, no director, substantial shareholder, or any of their respective associates had any business or interest that competed or might compete, directly or indirectly, with the Group's business[194](index=194&type=chunk)[197](index=197&type=chunk) - There were no other conflicts of interest between any such persons and the company[194](index=194&type=chunk)[197](index=197&type=chunk) [Directors' Securities Transactions](index=51&type=section&id=DIRECTORS'%20SECURITIES%20TRANSACTIONS) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed full compliance for the six months ended June 30, 2025, with no non-compliance incidents - 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 as its code of conduct[195](index=195&type=chunk)[198](index=198&type=chunk) - All directors have confirmed full compliance with the Model Code for the six months ended June 30, 2025, and throughout the period up to the date of this report, with no incidents of non-compliance[195](index=195&type=chunk)[198](index=198&type=chunk) [Audit Committee](index=52&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, comprising three independent non-executive directors chaired by Mr. Liu Weibiao, reviewed the Group's unaudited consolidated financial statements for H1 2025, confirming compliance with applicable accounting standards and adequate disclosure - The primary responsibilities of the Audit Committee include making recommendations on the appointment and removal of external auditors, reviewing financial statements, and overseeing internal control and risk management procedures[199](index=199&type=chunk)[202](index=202&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr. Liu Weibiao (Chairman), Dr. Wang Yi, and Mr. Zhang Yao[199](index=199&type=chunk)[202](index=202&type=chunk) - The committee has reviewed the Group's unaudited consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that they have been prepared in compliance with applicable accounting standards and made adequate disclosures[199](index=199&type=chunk)[202](index=202&type=chunk) [Resignation of Directors](index=52&type=section&id=RESIGNATION%20OF%20DIRECTORS) Executive Director Mr. Du Yingyou resigned on March 17, 2025, and Independent Non-executive Director Mr. Chen Guanyong resigned on May 22, 2025, ceasing his committee memberships - Executive Director Mr. Du Yingyou resigned on March 17, 2025[200](index=200&type=chunk)[203](index=203&type=chunk) - Independent Non-executive Director Mr. Chen Guanyong resigned on May 22, 2025, and ceased to be a member of the Board's Audit Committee, Remuneration Committee, and Nomination Committee[200](index=200&type=chunk)[203](index=203&type=chunk) [Update on Directors' Information Under Rule 13.51B(1) of the Listing Rules](index=52&type=section&id=UPDATE%20ON%20DIRECTORS'%20INFORMATION%20UNDER%20RULE%2013.51B(1)%20OF%20THE%20LISTING%20RULES) During the reporting period, no other information was required to be disclosed under Rule 13.51B(1) of the Listing Rules - During the reporting period, no other information was required to be disclosed under Rule 13.51B(1) of the Listing Rules[201](index=201&type=chunk)[204](index=204&type=chunk) [Events After the Reporting Period](index=53&type=section&id=EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) No significant events occurred after the reporting period, other than those disclosed elsewhere in this report - No significant events occurred after the reporting period, other than those disclosed in this report[205](index=205&type=chunk)[207](index=207&type=chunk)

Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's total revenue decreased by 38.6% to HKD 76,625 thousand for the six months ended June 30, 2025, leading to an 86.4% increase in loss attributable to equity holders to HKD 36,930 thousand, driven by revenue decline and higher finance costs Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (HKD '000) | June 30, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 76,625 | 124,737 | -38.6% | | Gross Profit | 3,851 | 5,060 | -23.8% | | Other Income | 2,997 | 6,169 | -51.4% | | Finance Costs | (21,237) | (6,768) | +213.8% | | Loss Before Tax | (36,930) | (19,764) | +86.8% | | Loss for the Period Attributable to Equity Holders of the Company | (36,930) | (19,764) | +86.8% | | Basic and Diluted Loss Per Share (HKD) | (1.27) | (0.68) | +86.8% | - Finance costs for the period significantly increased by **213.8%**, from **HKD 6,768 thousand** in 2024 to **HKD 21,237 thousand** in 2025, materially impacting the widening loss[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's financial position deteriorated, with net current liabilities increasing to HKD 129,093 thousand and net liabilities to HKD 59,549 thousand, reflecting heightened liquidity pressure Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 461,325 | 495,173 | -6.9% | | Current Assets | 48,444 | 93,159 | -48.0% | | Current Liabilities | 177,537 | 181,715 | -2.3% | | Net Current Liabilities | (129,093) | (88,556) | +45.8% | | Non-current Liabilities | 391,781 | 429,492 | -8.7% | | Net Liabilities | (59,549) | (22,875) | +160.3% | | Bank and Cash Balances | 21,555 | 59,765 | -63.9% | - The Group's **net current liabilities** and **net liabilities** both significantly increased, indicating intensified liquidity pressure and a deteriorating financial position[6](index=6&type=chunk)[7](index=7&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, accounting policies, segment information, revenue composition, other income and expenses, finance costs, taxation, dividends, loss per share, and trade and other receivables/payables, noting the Group's liquidity risk but the Board's confidence in the going concern assumption based on future cash flow forecasts and new financing arrangements [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) For the six months ended June 30, 2025, the Group incurred a net loss of HKD 36,930 thousand, with net current liabilities of HKD 129,093 thousand and net liabilities of HKD 59,549 thousand, facing liquidity risk, which the Board attributes to upcoming debt maturities and addresses through cash flow forecasts, cost control, and new financing arrangements to support the going concern assumption - As of June 30, 2025, the Group recorded a **net loss of HKD 36,930 thousand**, **net current liabilities of HKD 129,093 thousand**, and **net liabilities of HKD 59,549 thousand**, facing liquidity risk[8](index=8&type=chunk) - The Board attributes the net current liabilities and net liabilities primarily to **HKD 70,000 thousand** in bonds payable and **HKD 35,000 thousand** in bank borrowings due within 12 months after the reporting period[8](index=8&type=chunk) - The Board is satisfied that the financial statements are prepared on a going concern basis, supported by cash flow forecasts, bond repayment schedules, cost control, operating cash, and new financing arrangements[9](index=9&type=chunk) [2. Principal Accounting Policies](index=5&type=section&id=2.%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the prior year's annual financial statements, except for the adoption of new/revised Hong Kong Financial Reporting Standards, which had no material impact on the Group's financial position or performance during this interim period - The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the prior year's annual financial statements, except for the adoption of new/revised Hong Kong Financial Reporting Standards[10](index=10&type=chunk) - New/revised Hong Kong Financial Reporting Standards adopted during this interim period, such as the amendment to HKAS 21 'Lack of Exchangeability', had no material impact on the Group's financial position or performance[11](index=11&type=chunk) [3. Segment Information](index=6&type=section&id=3.%20Segment%20Information) The Group's operating segments include cold storage and related services in Hong Kong, and food and beverage trading and sales in China and Hong Kong, both experiencing significant declines in revenue and results, with cold storage services revenue down 33.2% and food and beverage trading revenue down 61.8% Revenue and Results by Operating Segment | Segment | June 30, 2025 (HKD '000) | June 30, 2024 (HKD '000) | Revenue Change (%) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cold Storage and Related Services Revenue | 67,484 | 100,998 | -33.2% | -153.3% (widened loss) | | Food and Beverage Trading and Sales Revenue | 9,017 | 23,612 | -61.8% | -397.8% (widened loss) | | Consolidated Revenue | 76,501 | 124,610 | -38.6% | -164.1% (widened loss) | Revenue by Geographical Region | Region | June 30, 2025 (HKD '000) | June 30, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 67,616 | 101,125 | -33.1% | | China | 9,009 | 23,612 | -61.8% | | Total | 76,625 | 124,737 | -38.6% | [4. Revenue](index=7&type=section&id=4.%20Revenue) The Group's total revenue decreased from HKD 124,737 thousand in the prior year to HKD 76,625 thousand in 2025, primarily due to a 33.8% reduction in cold storage services revenue and a 61.8% reduction in food and beverage trading and sales revenue, with 88.1% of revenue recognized over time as service income Revenue Analysis by Category | Revenue Category | June 30, 2025 (HKD '000) | June 30, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Cold Storage Services | 58,818 | 88,840 | -33.8% | | Management Services | 884 | 1,292 | -31.6% | | Logistics Services | 7,782 | 10,866 | -28.4% | | Food and Beverage Trading and Sales | 9,017 | 23,612 | -61.8% | | Total Revenue | 76,625 | 124,737 | -38.6% | - In the first half of 2025, **88.1%** of revenue (**HKD 67,484 thousand**) was recognized over time as service income, while **11.9%** (**HKD 9,017 thousand**) was recognized at a point in time as sales revenue[20](index=20&type=chunk) [5. Other Income](index=8&type=section&id=5.%20Other%20Income) The Group's other income decreased by 51.4% from HKD 6,169 thousand in the prior year to HKD 2,997 thousand in 2025, primarily due to significant reductions in estimated interest income from lease deposits paid and other service income Other Income Analysis | Income Category | June 30, 2025 (HKD '000) | June 30, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Estimated Interest Income from Lease Deposits Paid | 487 | 1,496 | -67.4% | | Interest Income from Bank Deposits | 26 | 37 | -29.7% | | Other Service Income | 2,455 | 4,610 | -46.8% | | Miscellaneous Income | 29 | 26 | +11.5% | | Total | 2,997 | 6,169 | -51.4% | [6. Other Gains (Losses), Net](index=8&type=section&id=6.%20Other%20Gains%20(Losses),%20Net) The Group's other gains (losses), net, shifted from a loss of HKD 76 thousand in the prior year to a gain of HKD 68 thousand in 2025, primarily driven by a HKD 110 thousand gain from disposal/write-off of property, plant, and equipment, offsetting exchange losses Other Gains (Losses), Net Analysis | Item | June 30, 2025 (HKD '000) | June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Net Exchange Loss | (78) | (84) | | Net Gain (Loss) on Disposal/Write-off of Property, Plant and Equipment | 110 | (43) | | Recovery of Loans Receivable | 36 | 51 | | Total | 68 | (76) | [7. Finance Costs](index=8&type=section&id=7.%20Finance%20Costs) The Group's finance costs significantly increased by 213.8% from HKD 6,768 thousand in the prior year to HKD 21,237 thousand in 2025, primarily due to a surge in interest expense on lease liabilities from HKD 2,905 thousand to HKD 17,388 thousand Finance Costs Analysis | Item | June 30, 2025 (HKD '000) | June 30, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | 1,323 | 863 | +53.3% | | Interest Expense on Bonds Payable | 2,475 | 3,000 | -17.5% | | Interest Expense on Lease Liabilities | 17,388 | 2,905 | +498.6% | | Interest Expense on Defined Benefit Plan Liabilities | 51 | - | N/A | | Total | 21,237 | 6,768 | +213.8% | [8. Income Tax Expense](index=9&type=section&id=8.%20Income%20Tax%20Expense) The Group made no provision for Hong Kong profits tax, as estimated taxable profits were absorbed by prior year tax losses or resulted in tax losses, while its China operations are subject to enterprise income tax at a 25% rate - For the six months ended June 30, 2025 and 2024, the Group made no provision for Hong Kong profits tax, primarily due to tax losses absorbing taxable profits[25](index=25&type=chunk) - The Group's operations in China are subject to China enterprise income tax at a rate of **25%**[26](index=26&type=chunk) [9. Dividends](index=9&type=section&id=9.%20Dividends) For the six months ended June 30, 2025 and 2024, the Company neither paid, declared, nor proposed any dividends - The Company's directors have determined not to pay any dividends for this interim period (six months ended June 30, 2024: nil)[27](index=27&type=chunk) [10. Loss Per Share](index=9&type=section&id=10.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to equity holders of the Company widened to HKD 1.27 from HKD 0.68 in the prior year, with diluted loss per share being the same as basic loss per share due to the absence of issued potential ordinary shares Loss Per Share | Metric | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Basic Loss Per Share | (1.27) | (0.68) | | Diluted Loss Per Share | (1.27) | (0.68) | - The weighted average number of ordinary shares used to calculate basic loss per share has been adjusted to account for the share consolidation on July 16, 2025, assuming it was completed on January 1, 2024[29](index=29&type=chunk) [11. Trade and Other Receivables, Deposits and Prepayments](index=10&type=section&id=11.%20Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) As of June 30, 2025, trade receivables (net of allowance) were approximately HKD 23,114 thousand, a 22.9% decrease from HKD 29,990 thousand as of December 31, 2024, with a corresponding reduction in loss allowance Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Within 30 days | 12,060 | 13,142 | | 31 to 60 days | 6,195 | 8,069 | | 61 to 90 days | 663 | 3,352 | | 91 to 120 days | 801 | 1,269 | | Over 120 days | 3,395 | 4,158 | | Total | 23,114 | 29,990 | - The loss allowance for trade receivables decreased from **HKD 637 thousand** as of December 31, 2024, to **HKD 505 thousand** as of June 30, 2025[30](index=30&type=chunk) [12. Trade and Other Payables](index=10&type=section&id=12.%20Trade%20and%20Other%20Payables) As of June 30, 2025, trade payables were approximately HKD 3,075 thousand, an 11.4% increase from HKD 2,760 thousand as of December 31, 2024, with most payables due within 30 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Within 30 days | 2,309 | 2,158 | | 31 to 60 days | 739 | 602 | | 61 to 90 days | 27 | - | | Total | 3,075 | 2,760 | Management Discussion and Analysis [Overall Performance](index=11&type=section&id=Overall%20Performance) For the six months ended June 30, 2025, the Group's total revenue was approximately HKD 76,600 thousand, a 38.6% year-on-year decrease, with loss attributable to equity holders increasing by 86.4% to HKD 36,900 thousand, primarily due to reduced revenue from cold storage and food and beverage businesses, and accounting impacts from extended cold storage lease agreements - The Group's total revenue was approximately **HKD 76,600 thousand**, a decrease of approximately **38.6%** compared to the same period last year[32](index=32&type=chunk) - The Group recorded a loss attributable to equity holders of approximately **HKD 36,900 thousand**, an increase of approximately **86.4%** compared to a loss of approximately **HKD 19,800 thousand** in the same period last year[32](index=32&type=chunk) - The loss was primarily attributable to a decrease in revenue from cold storage and related services by approximately **33.2%**, a decrease in revenue from food and beverage trading and sales in Mainland China by approximately **61.8%**, and the accounting impact of extending cold storage lease agreements[32](index=32&type=chunk) [Operating Segment Review](index=11&type=section&id=Operating%20Segment%20Review) The Group's cold storage and logistics business faced customer attrition and increased competition due to unfavorable Hong Kong economic conditions and cross-border shopping trends, while the food and beverage trading business in Mainland China, despite economic growth, contended with real estate challenges and cautious consumer spending, responding by streamlining its distribution network and implementing cost controls [Cold Storage and Logistics](index=11&type=section&id=Cold%20Storage%20and%20Logistics) The Hong Kong cold storage and logistics segment experienced reduced demand for storage and logistics services, customer attrition, and intensified competition due to unfavorable local economic conditions and consumer cross-border shopping trends, which the Group addressed by optimizing warehouse operations, relocating, adjusting manpower, and maintaining client relationships - The Hong Kong cold storage and logistics segment was affected by unfavorable macroeconomic conditions and local consumer cross-border shopping trends, leading to reduced demand for local storage and logistics services[34](index=34&type=chunk) - The segment experienced customer attrition and increased competition, prompting the Group to selectively adjust prices to maintain market share[34](index=34&type=chunk) - The Group optimized warehouse operations, relocating its business from the Tsing Yi warehouse to the Kwai Hei Street facility, and implemented manpower adjustments for cost savings[35](index=35&type=chunk) [Trading and Sales of Food and Beverage Products](index=11&type=section&id=Trading%20and%20Sales%20of%20Food%20and%20Beverage%20Products) The Mainland China food and beverage trading business continued with a refined operating model, focusing on high-margin wholesale channels and selected retail products; despite positive economic momentum, real estate challenges and cautious consumer spending intensified competition, which the Group addressed by maintaining supermarket brand relationships, expanding convenience store networks, strict cost control, and prioritizing premium imported products - The Mainland China trading business continued to operate with a refined model, focusing on higher-margin wholesale channels and selected retail products, streamlining its distribution network, and prioritizing the sale of more profitable products[36](index=36&type=chunk) - Mainland China's economy grew by **5.3%** GDP in the first half, but real estate sector challenges and cautious consumer spending intensified competition in the food trading sector[37](index=37&type=chunk) - The Group maintained close ties with renowned supermarket brands, expanded its convenience store network, implemented strict cost controls, improved procurement efficiency, and prioritized premium imported products[37](index=37&type=chunk) [Prospects](index=12&type=section&id=Prospects) The Group maintains cautious optimism for the second half and beyond, with recent new share subscriptions and convertible bond issuances injecting fresh capital and enhancing liquidity; the cold storage business is expected to benefit from Hong Kong's tourism rebound and government stimulus, while the food and beverage business will continue to optimize its product portfolio and leverage China's consumption stimulus policies to expand its market - Recently completed significant financing activities, including new share subscriptions and convertible bond issuances, injected new capital, settled outstanding debts, and enhanced liquidity[38](index=38&type=chunk) - Board changes, including the appointment of new executive directors with capital market and financing expertise, are expected to introduce innovative perspectives to drive strategic growth[38](index=38&type=chunk) - The Group will consider a premiumization strategy, shifting towards high-quality imported products, health products, and niche categories, and leveraging consumer data to tailor products[42](index=42&type=chunk) [Cold Storage and Logistics](index=12&type=section&id=Cold%20Storage%20and%20Logistics) The Hong Kong cold storage and logistics segment is expected to benefit from a tourism rebound (12% year-on-year surge in visitor arrivals in H1 2025) and government stimulus measures, with the Group planning to leverage expanded capacity at Kwai Hei Street warehouse to offer value-added solutions, diversify its client base, and seek strategic partners - Hong Kong's tourism rebound, with visitor arrivals surging **12%** year-on-year to over **24 million** in H1 2025, is expected to stimulate F&B sector spending, creating indirect demand for the Group's services[39](index=39&type=chunk) - The Group plans to leverage the expanded capacity of the Kwai Hei Street warehouse to offer value-added solutions, such as integrated supply chain management, to diversify its customer base[39](index=39&type=chunk) - The Group is actively seeking suitable strategic partners for joint ventures, which are expected to drive overall development[40](index=40&type=chunk) [Trading and Sales of Food and Beverage Products](index=12&type=section&id=Trading%20and%20Sales%20of%20Food%20and%20Beverage%20Products) The Mainland China trading segment will continue to optimize its product portfolio and distribution channels, sourcing high-margin imported products; leveraging China's resilient economic growth and government consumption stimulus, the Group will explore expanding convenience store and online retail businesses, and consider a premiumization strategy towards high-quality imported, health, and niche products - The Group will continue to optimize its product portfolio and distribution channels, including sourcing high-margin imported products for cross-border sales[41](index=41&type=chunk) - Mainland China's economy showed resilience with **5.3%** GDP growth in H1 2025, and government consumption stimulus measures, such as subsidies for green smart home appliances, may boost retail sentiment[41](index=41&type=chunk) - The Group aims to leverage urban consumption trends to explore expanding convenience store and online retail businesses, and consider a premiumization strategy, shifting towards high-quality imported products, health products, and niche categories[41](index=41&type=chunk)[42](index=42&type=chunk) Financial Review [Liquidity and Financial Resources](index=13&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's bank and cash balances were approximately HKD 21,600 thousand, a significant 63.9% decrease from December 31, 2024, primarily due to bond repayments and recorded losses; while the gearing ratio improved but remained negative, post-reporting period, HKD 35,000 thousand in bank borrowings were fully repaid, with future liquidity relying on operating cash, capital market financing, and proceeds from new shares/convertible bonds Overview of Liquidity and Financial Resources | Metric | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Bank and Cash Balances | 21,600 | 59,800 | -63.9% | | Gearing Ratio (excluding lease liabilities) | -176.3% | -524.6% | N/A | | Total Outstanding Principal Amount of Bonds | 70,000 | 85,000 | -17.6% | | Bank Borrowings | - | 35,000 | -100% (repaid) | - The decrease in bank and cash balances was primarily due to the repayment of **HKD 15,000 thousand** in bonds payable and the recognition of losses for the six months ended June 30, 2025[43](index=43&type=chunk) - Subsequent to the reporting period and up to the date of this announcement, **HKD 35,000 thousand** in bank borrowings were fully repaid[44](index=44&type=chunk) [Treasury Policy](index=14&type=section&id=Treasury%20Policy) The Group adopts a conservative treasury policy, strictly monitoring its cash management, with bank and cash balances primarily denominated in Hong Kong Dollars - The Group adopts a conservative treasury policy, strictly monitoring its cash management[45](index=45&type=chunk) - The Group's bank and cash balances are primarily denominated in Hong Kong Dollars[45](index=45&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging](index=14&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) The Group's monetary assets and liabilities are primarily denominated in Hong Kong Dollars, leading directors to consider exchange rate risk minimal; despite potential increased risk from Mainland China food and beverage operations, as of the reporting period, the Group had no significant foreign exchange exposure and used no hedging instruments - The Group's monetary assets and liabilities are primarily denominated in Hong Kong Dollars, and the directors consider exchange rate risk to be minimal[46](index=46&type=chunk) - The Group may be exposed to relatively higher exchange rate risk when more food and beverage trading and sales operations are conducted in Mainland China[46](index=46&type=chunk) - For the six months ended June 30, 2025, the Group had no significant foreign exchange exposure and did not use any financial instruments for hedging purposes[46](index=46&type=chunk) [Share Capital Structure](index=14&type=section&id=Share%20Capital%20Structure) As of June 30, 2025, the Company's total issued share capital was HKD 2,901,104, comprising 290,110,400 ordinary shares of HKD 0.01 each; subsequent to the reporting period, a 10-to-1 share consolidation on July 16, 2025, reduced the number of issued shares to 29,011,040, with a par value of HKD 0.1 per share - As of June 30, 2025, the Company's total issued share capital was **HKD 2,901,104**, divided into **290,110,400** ordinary shares of **HKD 0.01** each[47](index=47&type=chunk) - On July 16, 2025, the Company implemented a share consolidation, where every ten (10) existing shares were consolidated into one (1) consolidated share, resulting in **29,011,040** issued shares with a par value of **HKD 0.1** per share[47](index=47&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=14&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[48](index=48&type=chunk) [Pledge of Assets](index=14&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's bank facilities (HKD 3,500 thousand) were secured by HKD 1,700 thousand in bank deposits, while cold storage lease liabilities (approximately HKD 107,000 thousand) were secured by cash deposits, corporate guarantees, floating charges, and share pledges, with approximately HKD 600 thousand in vehicles also pledged to secure lease liabilities - A bank provided the Group with **HKD 3,500 thousand** in banking facilities, secured by **HKD 1,700 thousand** in bank deposits[49](index=49&type=chunk) - The Group's cold storage lease liabilities (approximately **HKD 107,000 thousand**) were secured or guaranteed by cash deposits, corporate guarantees, floating charges, and share pledges[49](index=49&type=chunk) - Vehicles with a carrying amount of approximately **HKD 600 thousand** were pledged as a charge by the lessor over the leased assets to secure lease liabilities of approximately **HKD 600 thousand**[49](index=49&type=chunk) [Future Plans for Material Investments or Capital Assets](index=14&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 future plans for material investments or capital assets[50](index=50&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[51](index=51&type=chunk) Other Information [Employment and Remuneration Policy](index=15&type=section&id=Employment%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's total employees decreased to approximately 150 (130 in Hong Kong, 20 in China), with total staff-related costs declining by 12.7% to HKD 29,425 thousand, reflecting cost control measures under economic pressure; the Group is considering extending its share option scheme to middle management and enhancing training in cold storage and supply chain innovation skills Employee Headcount and Costs | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong Employees | 130 | 160 | -18.8% | | Mainland China Employees | 20 | 30 | -33.3% | | Total Staff-Related Costs (HKD '000) | 29,425 | 33,696 | -12.7% | - The Group implemented extensive cost control measures, focusing on streamlining non-core positions while retaining essential professionals in cold storage and trading[52](index=52&type=chunk) - To incentivize employees, the Group is considering extending its share option scheme, currently limited to senior management, to middle management[52](index=52&type=chunk) [Interim Dividend](index=15&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[53](index=53&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=15&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%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, nor did they hold any treasury shares - 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[54](index=54&type=chunk) - For the six months ended June 30, 2025, the Company did not hold any treasury shares[54](index=54&type=chunk) [Significant Events After Reporting Period](index=15&type=section&id=Significant%20Events%20After%20Reporting%20Period) Subsequent to the reporting period, the Company completed a series of significant financing activities, including new share subscriptions under general mandate and convertible bond subscriptions under specific mandate, raising approximately HKD 43.19 million in net proceeds primarily for debt repayment and working capital, in addition to implementing a 10-to-1 share consolidation [Subscription of New Shares Under General Mandate](index=15&type=section&id=Subscription%20of%20New%20Shares%20Under%20General%20Mandate) On April 20, 2025, the Company entered into agreements with three subscribers for a total of 5,802,207 new shares at a subscription price of approximately HKD 0.04801 per share (HKD 0.4801 after share consolidation), raising net proceeds of approximately HKD 2,520 thousand, allocated for debt repayment (HKD 2,000 thousand) and the Group's working capital (HKD 520 thousand) - On April 20, 2025, the Company entered into agreements with three subscribers for a total of **58,022,079** subscription shares (pre-share consolidation) at a subscription price of approximately **HKD 0.04801** per share[56](index=56&type=chunk) - The subscription shares were issued on July 21 and 22, 2025, generating total proceeds of approximately **HKD 2,790 thousand** and net proceeds of approximately **HKD 2,520 thousand**[58](index=58&type=chunk) Use of Proceeds from New Share Subscription | Purpose | Available (HKD Million) | Utilized (HKD Million) | Unutilized (HKD Million) | Expected Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Repayment of Group's Debts | 2.00 | - | 2.00 | End of 2025 | | Group's Working Capital | 0.52 | - | 0.52 | End of 2025 | | Total | 2.52 | - | 2.52 | | [Subscription of Convertible Bonds Under Specific Mandate](index=17&type=section&id=Subscription%20of%20Convertible%20Bonds%20Under%20Specific%20Mandate) On April 20, 2025, the Company entered into agreements with three subscribers to issue unlisted convertible bonds with a total principal amount of HKD 45,000 thousand, convertible into up to 93,730,470 new shares at HKD 0.4801 per share (post-share consolidation); net proceeds of approximately HKD 40,670 thousand were raised, with HKD 35,000 thousand used for bank loan repayment and the remaining HKD 5,670 thousand for general working capital - The Company issued unlisted convertible bonds with a total principal amount of **HKD 45,000 thousand**, convertible into a total of **93,730,470** new shares at a conversion price of **HKD 0.4801** per conversion share (adjusted for share consolidation)[61](index=61&type=chunk)[62](index=62&type=chunk) - The convertible bonds bear interest at an annual rate of **6%** on the outstanding principal amount, maturing within three years from the issue date, with an option to extend for two years[63](index=63&type=chunk) Use of Proceeds from Convertible Bonds | Purpose | Approximate Amount of Net Proceeds Allocated (HKD) | Amount Utilized as of the Date of this Announcement (HKD) | | :--- | :--- | :--- | | Repayment of Bank Loans | 35,000,000 | 35,000,000 | | Group's General Working Capital | 5,670,000 | - | | Total | 40,670,000 | 35,000,000 | [Share Consolidation](index=19&type=section&id=Share%20Consolidation) On July 14, 2025, the Company passed an ordinary resolution to implement a share consolidation, where every ten (10) existing shares were consolidated into one (1) consolidated share, effective July 16, 2025 - Every ten (10) issued and unissued existing shares in the Company's share capital will be consolidated into one (1) consolidated share of **HKD 0.10** par value[68](index=68&type=chunk) - The share consolidation was approved by shareholders and became effective on July 16, 2025[68](index=68&type=chunk) [Corporate Governance](index=19&type=section&id=Corporate%20Governance) The Company generally complied with the Corporate Governance Code during the reporting period, with deviations noted for the absence of a Chairman, leading to an undifferentiated role from the Chief Executive and the Chairman's inability to attend general meetings, though the Board believes collective decision-making mitigates this gap; all directors confirmed compliance with the Model Code for Securities Transactions, and the Audit Committee reviewed financial reporting and internal controls, engaging an independent consultant to enhance risk management [Code on Corporate Governance Practices](index=19&type=section&id=Code%20on%20Corporate%20Governance%20Practices) The Company complied with the Corporate Governance Code during the reporting period, with two deviations: no Chairman appointed, leading to an undifferentiated role from the Chief Executive, and the Chairman's absence from general meetings; the Board believes collective decision-making mitigates the negative impact of the Chairman's vacancy - The Company has not appointed a Chairman, resulting in an undifferentiated role from the Chief Executive, which deviates from Code Provision C.2.1 of the Corporate Governance Code[69](index=69&type=chunk) - As the Company had no Chairman for the six months ended June 30, 2025, it did not comply with Code Provision F.1.3 of the Corporate Governance Code regarding the Chairman's attendance at annual general meetings and answering questions[69](index=69&type=chunk) - The Board currently has no intention to fill the Chairman position, as all Company decisions are made collectively by the Board, believing that not filling the vacancy has no negative impact on the Company[70](index=70&type=chunk) [Model Code for Securities Transactions by Directors](index=20&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a written securities dealing policy, and all directors confirmed their compliance with the required standards set out in the policy for the six months ended June 30, 2025 - The Company has adopted a written securities dealing policy, and all directors confirmed their compliance with the required standards set out in the policy for the six months ended June 30, 2025[71](index=71&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Audit Committee reviewed the Group's adopted accounting principles and practices, discussed risk management, internal controls, and financial reporting matters, including the interim results, deeming them compliant with applicable accounting standards and disclosure requirements; the Committee comprises three independent non-executive directors - The Audit Committee, together with management, reviewed the Group's adopted accounting principles and practices, and discussed risk management, internal controls, and financial reporting matters[72](index=72&type=chunk) - The Audit Committee is of the opinion that the Group's unaudited condensed consolidated results for the six months ended June 30, 2025, comply with applicable accounting standards, Listing Rules, and legal requirements, and that adequate disclosures have been made[72](index=72&type=chunk) - The Audit Committee comprises all three independent non-executive directors, with Mr. Leung Chi Hung serving as Chairman[72](index=72&type=chunk) [Risk Management and Internal Control](index=20&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board is responsible for ensuring the Group has appropriate and effective risk management and internal control systems, reviewed by the Audit Committee; the Company engaged an independent professional consultant for internal audit functions to conduct independent assessments of certain subsidiaries, and the Board is satisfied with the adequacy and effectiveness of existing systems, which will be continuously reviewed and updated - The Board is responsible for ensuring the Group has appropriate and effective risk management and internal control systems, which the Audit Committee will review[73](index=73&type=chunk) - The Company has engaged an independent professional consultant to be responsible for internal audit functions, conducting independent assessments of the adequacy and effectiveness of risk management and internal control systems for certain subsidiaries[73](index=73&type=chunk) - For the six months ended June 30, 2025, the Board was satisfied that the Group had adequate risk management and internal control procedures, with no deficiencies identified[74](index=74&type=chunk) [Publication of Interim Results and Interim Report](index=21&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the HKEX website and the Company's website; the Company's 2025 interim report will be dispatched to shareholders and posted on the HKEX and Company websites in due course - This announcement is published on the HKEX website www.hkexnews.hk and the Company's website www.irasia.com/listco/hk/daido/index.htm[75](index=75&type=chunk) - The Company's 2025 interim report will be dispatched to the Company's shareholders and posted on the HKEX and Company websites in due course[75](index=75&type=chunk) [Board of Directors](index=21&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises executive directors Mr. Fung Pak Kei and Mr. He Xinyu; non-executive director Ms. Guan Yasong; and independent non-executive directors Mr. Leung Chi Hung, Ms. Li Dan, and Mr. Luo Zhihong - As of the date of this announcement, the Board of Directors comprises executive directors Mr. Fung Pak Kei and Mr. He Xinyu; non-executive director Ms. Guan Yasong; and independent non-executive directors Mr. Leung Chi Hung, Ms. Li Dan, and Mr. Luo Zhihong[76](index=76&type=chunk)

（股份代號：6178） 截至2025年6月30日止六個月之中期業績公告 光大證券股份有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附 屬公司截至2025年6月30日止六個月之未經審計中期業績。本公告列載本公司 2025年中期報告全文，並符合《香港聯合交易所有限公司證券上市規則》中有 關中期業績初步公告附載的資料之要求。本公司2025年中期報告將於2025年 9月底之前在香港交易及結算所有限公司網站 www.hkexnews.hk 及本公司網站 www.ebscn.com 刊發。 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。 光大證券股份有限公司 Everbright Securities Company Limited （於中華人民共和國註冊成立的股份有限公司） 承董事會命 光大證券股份有限公司 董事長 趙陵 中國上海 2025年8月28日 於本公告日期，本公司董事會成員包括趙陵先生（董事長、執行董事）、劉秋明先 生（執行董事、總裁） ...