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。 華電國際電力股份有限公司 Huadian Power International Corporation Limited* （在中華人民共和國（「中國」）註冊成立之中外合資股份有限公司） （股份代碼：1071） 二零二五年中期業績公告 財務及業務摘要 華電國際電力股份有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其 附屬公司（「本集團」）按《企業會計準則》編製的截至二零二五年六月三十日止六個 月期間（「本期間」）未經審計的中期合併財務業績摘要。 1 • 完成發電量約為120.62百萬兆瓦時； • 完成上網電量約為113.29百萬兆瓦時； • 實現營業收入約為人民幣599.53億元； • 實現歸屬於本公司股東的淨利潤約為人民幣39.04億元； • 基本每股收益約為人民幣0.33元。 本公司第十屆董事會第二十五次會議建議二零二五年中期派發股息每股人民幣 0.09元（含稅），以總股本11,611, ...

[Company Information](index=3&type=section&id=Company%20Information) This section details the composition of the company's board of directors, supervisory board, and various committees, including executive, non-executive, independent non-executive directors, and supervisors, along with their terms and positions [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the members of the company's Board of Directors, Supervisory Board, and various committees, including executive, non-executive, independent non-executive directors, and supervisors, noting their terms and roles - Board members include Executive Directors Mr. Xiao Guowei (Chairman and Chief Strategy Officer) and Mr. Hou Yu (President), as well as several Non-executive Directors and Independent Non-executive Directors[5](index=5&type=chunk) - The lists of members for the Strategy Committee, Audit Committee, Remuneration and Appraisal Committee, and Nomination Committee are also provided, with Ms. Zhang He serving as the Chair of the Audit Committee[5](index=5&type=chunk) [Professional Advisors and Contact Information](index=3&type=section&id=Professional%20Advisors%20and%20Contact%20Information) This section provides detailed contact and basic information for the company, including joint company secretaries, authorized representatives, auditors, compliance advisors, legal advisors (Hong Kong and China), registered office, principal place of business in Hong Kong, H share registrar, company website, stock code, listing date, and principal bankers - The company's auditor is Ernst & Young, and the compliance advisor is Max Times Capital Limited[5](index=5&type=chunk) - The company was listed on the Hong Kong Stock Exchange on November 8, 2024, with stock code 2551[7](index=7&type=chunk) - The registered office, headquarters, and principal place of business in China are located at No. 33 Huanshi Avenue South, Nansha District, Guangzhou, Guangdong Province, China[7](index=7&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, industry conditions, and future development strategies for the first half of 2025 [Business Review](index=5&type=section&id=Business%20Review) This section outlines the Group's business performance, industry conditions, and future development strategies for the first half of 2025, focusing on smart visual products and system solutions with "LED+" technology - The company is a provider of smart visual products and system solutions, with "LED+" as its core technology, covering automotive smart vision, high-end lighting, and new display businesses[9](index=9&type=chunk) - In the first half of 2025, the Chinese automotive industry faced a period of deep adjustment, with price wars extending to the supply chain, putting pressure on component manufacturers like automotive lighting suppliers[10](index=10&type=chunk) - The new display market is driven by innovative technologies such as Mini LED and local dimming, with Mini LED TV sales penetration increasing from 16% in the same period last year to over **40%** during the "618" sales event[12](index=12&type=chunk) 2025 First Half Key Financial Performance | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,113,000 | 1,071,000 | +3.9% | | Net Profit | 11,232 | 49,779 | -77.4% | - Net profit decreased primarily due to reduced profits in the smart automotive lighting business segment (driven by intensified competition in the automotive industry leading to lower average selling prices) and increased strategic investments in the construction of Guangzhou Lingwei Vision Greater Bay Area headquarters and R&D base[14](index=14&type=chunk) [The Company's Industry](index=5&type=section&id=The%20Company%27s%20Industry) This section outlines the company's industry of smart visual products and system solutions, highlighting its "LED+" core technology, and analyzing the current status and development opportunities in automotive smart vision, high-end lighting, and new display markets - The company has successfully transformed from a traditional LED manufacturer into a provider of smart visual products and systems, leveraging "LED+" technology to penetrate high-value and high-growth markets[9](index=9&type=chunk) - LED smart headlights, with their energy efficiency, long lifespan, and safety features like ADB, have seen rapid annual penetration growth and are evolving from single lighting components into core carriers for sensing, decision-making, and interaction[10](index=10&type=chunk) - The high-end lighting and new display markets benefit from advancements in LED chip technology, environmental policies, and increasing consumer demand for high-contrast, high-resolution display products[11](index=11&type=chunk)[12](index=12&type=chunk) [Business Review and Outlook](index=6&type=section&id=Business%20Review%20and%20Outlook) During the reporting period, the Group's operating revenue increased by 3.9% year-on-year to RMB 1.113 billion, but net profit decreased by 77.4% year-on-year to RMB 11.232 million, mainly due to reduced profits in the automotive smart vision lighting business and increased strategic investments 2025 First Half Business Segment Revenue and Year-on-year Change | Business Segment | 2025 H1 Revenue (RMB 100 million) | Year-on-year Change | | :--- | :--- | :--- | | Automotive Smart Vision | 4.19 | -9.3% | | New Display | 3.54 | +30.3% | | High-end Lighting | 3.40 | +0.6% | - The decline in automotive smart vision business revenue was primarily due to intensified competition in the automotive industry leading to lower average selling prices for complete lighting units, but sales of automotive-grade devices and modules significantly increased and are expected to enter a rapid growth phase[17](index=17&type=chunk) - New display business revenue grew significantly by **30.3%**, mainly driven by large-size TV backlight modules and Mini LED display technology applications, as well as national home appliance subsidy policies[18](index=18&type=chunk) - The Group has completed its full industry chain patent strategic layout, having obtained **446** authorized patents as of the end of the reporting period, including **125** invention patents[19](index=19&type=chunk) [Future Key R&D Directions](index=8&type=section&id=Future%20Key%20R%26D%20Directions) The company's future R&D will focus on smart visual products and systems, including automotive smart visual products, high-end lighting products, and new display products - Key R&D areas for automotive smart visual products include ten-thousand-pixel high-definition (HD) smart projection headlight systems, platform-based headlight ADB lens modules, and AR-HUD systems with large-screen TFTs featuring Local Dimming[22](index=22&type=chunk) - New display product R&D will focus on Mini LED new display backlight products and application solutions for large-size display panels, MicroLED technology for artificial intelligence (AI) display applications, and AR+AI glasses display modules[22](index=22&type=chunk) [Operations Management](index=8&type=section&id=Operations%20Management) The Group will comprehensively promote the application of Artificial Intelligence (AI) in product technology R&D, manufacturing, and operations management to strengthen intelligent manufacturing capabilities, optimize production processes, improve product yield, and build an intelligent cluster platform in the automotive smart vision field - Comprehensively promote the application of AI in R&D, production, and operations management to strengthen intelligent manufacturing capabilities, optimize production processes, and improve product yield[21](index=21&type=chunk) - Utilize AI technology to build an intelligent cluster platform in the automotive smart vision field, covering the entire product lifecycle from R&D to production and quality inspection by integrating multiple business-specific intelligent agents[21](index=21&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance for the first half of 2025, including revenue structure, balance sheet, liquidity, capital structure, contingent liabilities, foreign exchange risk, capital expenditures, and significant investments 2025 First Half Total Revenue and Year-on-year Change | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,112.6 | 1,070.9 | +3.9% | - Revenue growth primarily driven by increased revenue from the new display segment[24](index=24&type=chunk) [Revenue Structure](index=9&type=section&id=Revenue%20Structure) During the reporting period, the Group's total revenue was RMB 1,112.6 million, a 3.9% year-on-year increase, with significant growth in new display products and a decline in automotive smart vision products 2025 First Half Revenue by Product | Item | 2025 Revenue (RMB thousand) | Revenue Share (%) | 2024 Revenue (RMB thousand) | Revenue Share (%) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Automotive Smart Vision | 418,533 | 37.6% | 461,265 | 43.1% | (9.3)% | | New Display | 354,444 | 31.9% | 272,003 | 25.4% | 30.3% | | High-end Lighting | 339,643 | 30.5% | 337,628 | 31.5% | 0.6% | | Total | 1,112,620 | 100.0% | 1,070,896 | 100.0% | 3.9% | 2025 First Half Revenue by Place of Product Delivery | Item | 2025 Revenue (RMB thousand) | Revenue Share (%) | 2024 Revenue (RMB thousand) | Revenue Share (%) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 893,694 | 80.3% | 882,574 | 82.4% | 1.3% | | Overseas | 218,926 | 19.7% | 188,322 | 17.6% | 16.3% | | Total | 1,112,620 | 100.0% | 1,070,896 | 100.0% | 3.9% | [Financial Position](index=10&type=section&id=Financial%20Position) As of June 30, 2025, the Group's total assets were RMB 2,940.4 million, a 5.2% decrease from the end of 2024, with non-current liabilities significantly increasing due to deferred government grants 2025 June 30 Financial Position Overview | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,940.4 | 3,101.5 | -5.2% | | Non-current Assets | 1,074.7 | 1,060.0 | +1.4% | | Current Assets | 1,865.7 | 2,041.5 | -8.6% | | Total Liabilities | 1,667.7 | 1,806.7 | -7.7% | | Non-current Liabilities | 246.1 | 38.3 | +542.6% | | Current Liabilities | 1,421.6 | 1,768.4 | -19.6% | - Non-current liabilities significantly increased by **542.6%**, primarily due to the recognition of a **RMB 200 million** government grant as deferred income by subsidiary Lingwei Vision[29](index=29&type=chunk) [Liquidity and Financial Resources](index=11&type=section&id=Liquidity%20and%20Financial%20Resources) During the reporting period, the Group's net cash inflow from operating activities was RMB 4.0 million, a significant 94.2% year-on-year decrease, primarily due to payments for prior period procurement and increased R&D investment 2025 First Half Cash Flow from Operating Activities | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Net Cash Inflow from Operations | 4.0 | 69.2 | -94.2% | - The significant decrease in net cash inflow from operations was mainly due to payments for accounts payable related to a surge in orders in the second half of 2024, and increased R&D investment to maintain technological advantages[31](index=31&type=chunk) - As of June 30, 2025, bank and cash balances were approximately **RMB 544.0 million**, and total interest-bearing bank borrowings were approximately **RMB 190.1 million**, indicating sufficient liquidity[32](index=32&type=chunk)[33](index=33&type=chunk) [Capital Structure](index=11&type=section&id=Capital%20Structure) As of June 30, 2025, the Group's net debt-to-equity ratio was 14.9% and its asset-liability ratio was 56.7%, maintaining financial stability 2025 June 30 Capital Structure Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt-to-Equity Ratio | 14.9% | Not applicable | | Asset-Liability Ratio | 56.7% | 58.3% | - The Group monitors its capital structure using the asset-liability ratio and maintains financial stability to support continuous healthy business development[34](index=34&type=chunk) [Contingent Liabilities](index=11&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[35](index=35&type=chunk) [Foreign Exchange Risk](index=11&type=section&id=Foreign%20Exchange%20Risk) The Group's operations are primarily in Mainland China, with most assets and liabilities denominated in RMB, and it currently does not have a foreign currency hedging policy - The Group's business is primarily concentrated in Mainland China, with most assets and liabilities denominated in RMB, and it does not face significant foreign exchange risk[36](index=36&type=chunk) - Currently, no foreign currency hedging policy is adopted for foreign currency transactions, assets, and liabilities, but the Group believes it has sufficient foreign currency to meet its foreign exchange needs[36](index=36&type=chunk) [Capital Expenditures](index=11&type=section&id=Capital%20Expenditures) During the reporting period, the Group's capital expenditures amounted to RMB 99.2 million, primarily for capacity expansion and equipment upgrades, funded by internal resources, bank borrowings, and operating cash inflows 2025 First Half Capital Expenditures | Metric | Amount (RMB million) | | :--- | :--- | | Capital Expenditures | 99.2 | - Capital expenditures were mainly for capacity expansion and equipment upgrades to improve efficiency[37](index=37&type=chunk) [Capital Commitments](index=12&type=section&id=Capital%20Commitments) As of June 30, 2025, total contracted but unexpended capital commitments amounted to RMB 346.7 million, primarily for the construction of Guangzhou Lingwei 2025 June 30 Capital Commitments | Item | Amount (RMB million) | | :--- | :--- | | Total contracted but unexpended capital expenditures | 346.7 | - Primarily related to the construction investment of Guangzhou Lingwei[38](index=38&type=chunk) [Pledged Assets](index=12&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group had pledged assets with a total carrying value of RMB 431.8 million for bank financing, including pledged bank deposits, trade receivables and bills, property, plant and equipment, and right-of-use assets 2025 June 30 Pledged Assets | Asset Category | Amount (RMB million) | | :--- | :--- | | Pledged and restricted bank deposits | 99.4 | | Trade receivables and bills receivable | 40.7 | | Property, plant and equipment | 235.8 | | Restricted right-of-use assets | 55.9 | | **Total** | **431.8** | [Significant Investments Held](index=12&type=section&id=Significant%20Investments%20Held) As of June 30, 2025, the Group had not made or held any significant investments - As of June 30, 2025, the Group had not made or held any significant investments[40](index=40&type=chunk) [Future Plans for Material Investments and Capital Assets](index=12&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of the date of this interim report, the Group has no future plans for material external investments and capital assets - As of the date of this interim report, the Group has no future plans for material external investments and capital assets[41](index=41&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=12&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[42](index=42&type=chunk) [Employees and Remuneration Policy](index=12&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 2,345 employees, with staff costs of approximately RMB 194,264 thousand, a 15.3% year-on-year increase Employee and Remuneration Overview | Metric | June 30, 2025 | December 31, 2024 | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Total Employees | 2,345 people | 2,459 people | Not applicable | Not applicable | | Staff Costs | Not applicable | Not applicable | 194,264 | 168,519 | - Staff costs increased by **15.3%** year-on-year, and the company provides competitive remuneration packages, including basic salaries, performance bonuses, and contributions to statutory employee benefit plans[43](index=43&type=chunk)[44](index=44&type=chunk) - The company attracts talent through campus recruitment, internal and external referrals, and headhunters, and provides internal and external training to maintain and enhance employees' knowledge and skills[43](index=43&type=chunk)[44](index=44&type=chunk) [Financial Policy](index=12&type=section&id=Financial%20Policy) The Group has adopted a prudent financial management policy to ensure proper and effective recovery and allocation of funds, maintain sufficient liquidity, and closely monitor its liquidity position - Adopt a prudent financial management policy to ensure proper recovery and allocation of funds and prevent significant cash shortages[45](index=45&type=chunk) - Maintain sufficient liquidity to cover operating cash flows and administrative expenses, with the Board closely monitoring the liquidity position[45](index=45&type=chunk) [Corporate Governance and Other Information](index=13&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the company's corporate governance practices, changes in directors and supervisors, compliance with securities trading standards, use of global offering proceeds, audit committee review, dividend policy, and interests of directors and major shareholders [Corporate Governance Practices](index=13&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high standards of corporate governance, has adopted the Corporate Governance Code, and fully complied with all applicable code provisions during the reporting period - The company has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules and fully complied with all applicable code provisions during the reporting period[47](index=47&type=chunk) [Changes in Information of Directors, Chief Executives and Supervisors](index=13&type=section&id=Changes%20in%20Information%20of%20Directors%2C%20Chief%20Executives%20and%20Supervisors) At the AGM on May 29, 2025, Mr. Xiao Guowei, Mr. Hou Yu, and others were elected as executive, non-executive, and independent non-executive directors for a three-year term - Mr. Xiao Guowei, Mr. Hou Yu, and others were elected as directors of the fourth session of the Board of Directors for a three-year term, effective from May 29, 2025[49](index=49&type=chunk) - Mr. Li Wenhong and Ms. Luo Xiaoyun were elected as non-employee representative supervisors of the fourth session of the Supervisory Board, and Mr. Ou Weineng was re-elected as an employee representative supervisor, both for a three-year term[49](index=49&type=chunk) - Mr. Hou Yu was re-elected as the President of the company on May 29, 2025[49](index=49&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors and Supervisors](index=13&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The company has adopted the Model Code for Securities Transactions by Directors and Supervisors, and all directors and supervisors confirmed compliance during the reporting period - The company has adopted the Model Code in Appendix C3 of the Listing Rules, and all directors and supervisors confirmed compliance during the reporting period[51](index=51&type=chunk) - The company's senior management and relevant employees are also subject to the Model Code, prohibiting securities transactions when in possession of inside information[52](index=52&type=chunk) [Use of Proceeds from Global Offering](index=14&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company received net proceeds of HKD 79.04 million from the global offering on November 8, 2024, with HKD 2.94 million utilized as of the reporting period end, mainly for technology innovation and working capital Use of Net Proceeds from Global Offering (As of June 30, 2025) | Use of Proceeds | Percentage of Total Net Proceeds | Net Proceeds Allocated (HKD million) | Utilized during Reporting Period (HKD million) | Unutilized during Reporting Period (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Expansion of Automotive Smart Vision Production Capacity | 70% | 55.33 | 0 | 0 | | Technology Innovation and Product Upgrades | 20% | 15.81 | 1.54 | 14.27 | | Working Capital and General Corporate Purposes | 10% | 7.90 | 1.40 | 6.50 | | **Total** | **100%** | **79.04** | **2.94** | **20.77** | - The expected timetable for utilizing the unutilized net proceeds is on or before December 31, 2025[54](index=54&type=chunk) [Audit Committee](index=15&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors with Ms. Zhang He as Chair, reviewed and approved the interim condensed consolidated financial statements and interim report for the six months ended June 30, 2025 - The Audit Committee is composed of three independent non-executive directors, with Ms. Zhang He as Chair, and Mr. Chen Zhiguang possesses the appropriate professional qualifications as required by Rule 3.10(2) of the Listing Rules[57](index=57&type=chunk) - The Committee reviewed and agreed with management on the interim condensed consolidated financial statements and interim report, and discussed accounting principles and practices[58](index=58&type=chunk) [Dividends](index=15&type=section&id=Dividends) The Board of Directors has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025[59](index=59&type=chunk) [Interests and Short Positions of Directors, Supervisors and Chief Executives in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations](index=16&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executives%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) As of June 30, 2025, directors and chief executives, including Mr. Xiao, Mr. Chen, Mr. Yuan, and Mr. Hou Yu, held long positions in the company's shares or underlying shares, with Mr. Xiao, Mr. Chen, Mr. Yuan, and their concert parties collectively holding a significant proportion of domestic unlisted shares and H shares Long Positions of Directors/Chief Executives in the Company's Shares (As of June 30, 2025) | Name of Director/Chief Executive | Capacity/Nature of Interest | Class of Shares | Number of Shares(1) | Approximate Percentage of Shareholding(1) (%) | | :--- | :--- | :--- | :--- | :--- | | Mr. Xiao | Interest held jointly with other parties | Domestic unlisted shares | 171,316,739 (L) | 31.89 | | | | H shares | 63,524,835 (L) | 11.83 | | Mr. Chen | Interest held jointly with other parties | Domestic unlisted shares | 171,316,739 (L) | 31.89 | | | | H shares | 63,524,835 (L) | 11.83 | | Mr. Yuan | Interest held jointly with other parties | Domestic unlisted shares | 171,316,739 (L) | 31.89 | | | | H shares | 63,524,835 (L) | 11.83 | | Mr. Hou Yu | Spouse's interest | Domestic unlisted shares | 3,500,000 (L) | 0.65 | | | | H shares | 1,500,000 (L) | 0.28 | - Mr. Xiao, Mr. Chen, Mr. Yuan, APTESS, and Giant Power Limited are parties acting in concert regarding their equity interests in Microcrystal Advanced Optoelectronics and/or the Company, pursuant to a concert party agreement dated January 1, 2021[61](index=61&type=chunk) [Interests and Short Positions of Substantial Shareholders and Other Persons in Shares and Underlying Shares of the Company](index=17&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Microcrystal Advanced Optoelectronics, Jingyu Investment, Jingshi Investment, Jingling Investment, Jingrui Investment, APTESS, Ms. Lao, Giant Power Limited, Yaoning Technology, Ningbo Chunhua Qiushi, Angbu Investment, Mr. Li Xingxing, Yuetec Investment, Yuetec Group, Yuetec Holdings, and Su Yongchun, among other substantial shareholders and other persons, held interests in the company's shares or underlying shares Interests of Substantial Shareholders and Other Persons in the Company's Shares (As of June 30, 2025) | Name of Substantial Shareholder/Person | Capacity/Nature of Interest | Class of Shares | Number of Shares(1) | Approximate Percentage of Shareholding(1) (%) | | :--- | :--- | :--- | :--- | :--- | | Microcrystal Advanced Optoelectronics | Beneficial owner | Domestic unlisted shares | 149,824,524 (L) | 27.89 | | | | H shares | 52,483,352 (L) | 9.77 | | Yaoning Technology | Beneficial owner | Domestic unlisted shares | 34,291,286 (L) | 6.38 | | | | H shares | 34,291,287 (L) | 6.38 | | Guangdong Yuetec Financial Equity Investment Co., Ltd. | Beneficial owner | Domestic unlisted shares | 23,712,360 (L) | 4.41 | - Microcrystal Advanced Optoelectronics, Jingyu Investment, Jingling Investment, Jingrui Investment, and Jingshi Investment are parties acting in concert pursuant to a concert party agreement dated December 8, 2023[65](index=65&type=chunk)[74](index=74&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&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 no treasury shares were held as of June 30, 2025 - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[72](index=72&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[73](index=73&type=chunk) [Continuing Disclosure Obligations under Rules 13.20, 13.21 and 13.22 of the Listing Rules](index=21&type=section&id=Continuing%20Disclosure%20Obligations%20under%20Rules%2013.20%2C%2013.21%20and%2013.22%20of%20the%20Listing%20Rules) During the reporting period, the company had no continuing disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules - During the reporting period, the company had no continuing disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[76](index=76&type=chunk) [Pension Scheme](index=21&type=section&id=Pension%20Scheme) Employees of the Group's subsidiaries operating in Mainland China are required to participate in a central pension scheme operated by local municipal governments, with the company contributing a certain percentage of wage costs - Employees of subsidiaries in Mainland China are required to participate in a central pension scheme operated by local municipal governments, and the company is required to contribute a certain percentage of wage costs[77](index=77&type=chunk) [Share Incentive Schemes](index=21&type=section&id=Share%20Incentive%20Schemes) The company has Share Incentive Schemes I, II, and III, where participants indirectly hold awarded shares through employee shareholding platforms, subject to regulatory lock-up requirements and prescribed lock-up periods - The company has Share Incentive Schemes I, II, and III, where participants indirectly hold interests in incentive shares through employee shareholding platforms[78](index=78&type=chunk) - Awards under the Share Incentive Schemes are subject to regulatory lock-up requirements and prescribed lock-up periods (from the grant date until two years after the listing date)[78](index=78&type=chunk) - As of June 30, 2025, all restricted share units under the Share Incentive Schemes have been granted to eligible participants[79](index=79&type=chunk) [Events After the Reporting Period and Material Changes](index=21&type=section&id=Events%20After%20the%20Reporting%20Period%20and%20Material%20Changes) The directors confirm that there have been no material adverse changes in the company's financial or trading position or prospects, nor any events with a significant impact on the information contained in this interim report, from June 30, 2025, up to the date of this interim report - From June 30, 2025, up to the date of this interim report, there have been no material adverse changes in the company's financial or trading position or prospects[80](index=80&type=chunk) [Independent Review Report](index=22&type=section&id=Independent%20Review%20Report) This section presents the independent review report by Ernst & Young, confirming that nothing has come to their attention to suggest that the interim financial information is not prepared in all material respects in accordance with IAS 34 [Scope of Review and Conclusion](index=22&type=section&id=Scope%20of%20Review%20and%20Conclusion) Ernst & Young has reviewed the Group's interim financial information for the six months ended June 30, 2025, and found no matters suggesting it was not prepared in all material respects according to IAS 34 - Ernst & Young has reviewed the interim financial information, and this review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[81](index=81&type=chunk)[82](index=82&type=chunk) - The review concluded that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[83](index=83&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=23&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the interim condensed consolidated statement of profit or loss and other comprehensive income, showing the Group's revenue, profit, and other comprehensive income for the six months ended June 30, 2025 [Overview of Profit or Loss and Comprehensive Income](index=23&type=section&id=Overview%20of%20Profit%20or%20Loss%20and%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group achieved revenue of RMB 1,112,620 thousand, a 3.9% year-on-year increase, but profit for the period significantly decreased by 77.4% to RMB 11,232 thousand 2025 First Half Consolidated Statement of Profit or Loss Summary | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,112,620 | 1,070,896 | +3.9% | | Gross Profit | 167,757 | 196,974 | -14.8% | | Profit Before Tax | 13,965 | 53,086 | -73.7% | | Profit for the Period | 11,232 | 49,779 | -77.4% | | Earnings Per Share Attributable to Owners of the Parent (RMB) | 0.02 | 0.10 | -80.0% | - Sales and distribution expenses and research and development expenses increased year-on-year, while administrative expenses decreased[86](index=86&type=chunk) - Other comprehensive loss for the period primarily arose from fair value changes of financial assets measured at fair value through other comprehensive income and exchange differences on translation of overseas operations[87](index=87&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=25&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the interim condensed consolidated statement of financial position, detailing the Group's assets, liabilities, and equity as of June 30, 2025 [Overview of Assets and Liabilities](index=25&type=section&id=Overview%20of%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total assets were RMB 2,940,430 thousand, a 5.2% decrease from the end of 2024, with net current assets improving to RMB 444,015 thousand 2025 June 30 Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 1,074,778 | 1,059,982 | +1.4% | | Total Current Assets | 1,865,652 | 2,041,533 | -8.6% | | Total Current Liabilities | 1,421,637 | 1,768,416 | -19.6% | | Total Non-current Liabilities | 246,110 | 38,239 | +542.6% | | Net Assets | 1,272,683 | 1,294,860 | -1.7% | - Net current assets increased from RMB 273,117 thousand at December 31, 2024, to **RMB 444,015 thousand**[89](index=89&type=chunk) - The significant increase in non-current liabilities was primarily due to the recognition of deferred income[90](index=90&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=27&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section presents the interim condensed consolidated statement of changes in equity, showing the movements in the Group's equity for the six months ended June 30, 2025 [Overview of Changes in Equity](index=27&type=section&id=Overview%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the Group's total equity was RMB 1,272,683 thousand, a slight decrease from RMB 1,294,860 thousand at the end of 2024, with total comprehensive income for the period at RMB 11,010 thousand 2025 First Half Consolidated Statement of Changes in Equity Summary | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Equity | 1,272,683 | 1,294,860 | -1.7% | | Total Comprehensive Income for the Period | 11,010 | Not applicable | Not applicable | | Dividends Declared | (36,526) | Not applicable | Not applicable | - Share capital remained unchanged, reserves slightly decreased, but share-based payment reserve increased[92](index=92&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=29&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the interim condensed consolidated statement of cash flows, detailing the Group's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 [Overview of Cash Flows](index=29&type=section&id=Overview%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash flow from operating activities was RMB 3,966 thousand, a significant 94.2% year-on-year decrease, with net cash used in investing activities at RMB 150,961 thousand 2025 First Half Consolidated Statement of Cash Flows Summary | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,966 | 69,194 | -94.2% | | Net Cash Flow (Used in)/from Investing Activities | (150,961) | 17,222 | Not applicable | | Net Cash Flow from Financing Activities | 91,860 | 27,111 | +238.8% | | Cash and Cash Equivalents at End of Period | 444,553 | 323,738 | +37.3% | - Operating cash flow significantly decreased primarily due to payments for prior period accounts payable and increased R&D investment[95](index=95&type=chunk) - Increased cash outflow from investing activities was mainly due to the purchase of financial assets measured at fair value through profit or loss and placement of pledged time deposits[96](index=96&type=chunk) [Notes to Interim Condensed Consolidated Financial Statements](index=31&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the interim condensed consolidated financial statements, covering company information, basis of preparation, accounting policy changes, operating segment information, revenue, profit before tax, income tax, dividends, earnings per share, property, plant and equipment, inventories, trade and bills receivables, trade and bills payables, other payables and accrued expenses, share capital, share-based payments, commitments, related party transactions, fair value of financial instruments, and approval of financial information [Company and Group Information](index=31&type=section&id=Company%20and%20Group%20Information) Guangdong Jingke Electronics Co., Ltd. was established in China, primarily engaged in the production and sale of LED-related products and automotive smart visual products - The company was established in the People's Republic of China, with its principal activities being the production and sale of LED-related products and automotive smart visual products[97](index=97&type=chunk)[103](index=103&type=chunk) [Basis of Preparation](index=31&type=section&id=Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024 - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[97](index=97&type=chunk) - The unaudited interim condensed consolidated financial information is presented in RMB, and all values are rounded to the nearest thousand unless otherwise specified[98](index=98&type=chunk) [Changes in Accounting Policies and Disclosures](index=31&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) Except for the first-time adoption of IAS 21 (Amendment) "Lack of Exchangeability," the accounting policies used to prepare the interim condensed consolidated financial information are consistent with those of the previous year, with no significant financial impact - Except for the first-time adoption of IAS 21 (Amendment) "Lack of Exchangeability" during this period, the accounting policies used to prepare the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[99](index=99&type=chunk) - The adoption of the above revised IFRS accounting standards had no significant financial impact on the interim condensed consolidated financial information[100](index=100&type=chunk) [Operating Segment Information](index=31&type=section&id=Operating%20Segment%20Information) For management purposes, the Group has only one reportable operating segment, with its principal operating entities and most revenue derived from Mainland China - For management purposes, the Group does not disaggregate business units by its services and products and has only one reportable operating segment[101](index=101&type=chunk) - The principal operating entities are all located in Mainland China, and most of the Group's revenue from external customers is generated from Mainland China[102](index=102&type=chunk) [Information about Major Customers](index=32&type=section&id=Information%20about%20Major%20Customers) In the first half of 2025, Customer I contributed RMB 307,286 thousand in revenue, and Customer II contributed RMB 176,536 thousand Revenue from Major Customers (RMB thousand) | Customer | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Customer I | 307,286 | 416,074 | | Customer II | 176,536 | 120,531 | | Customer III | Not applicable | 119,007 | [Revenue, Other Income and Gains](index=32&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) The Group's revenue from contracts with customers for the first half of 2025 was RMB 1,112,620 thousand, with total other income and gains of RMB 17,500 thousand, primarily from interest income, government grants, and exchange differences 2025 First Half Other Income and Gains | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 4,022 | 2,432 | | Government grants | 8,725 | 1,865 | | Exchange difference gains | 512 | 977 | | Investment income from financial assets measured at fair value through profit or loss | 1,662 | 1,652 | | **Total other income and gains** | **17,500** | **11,143** | - Government grants primarily refer to awards received from local governments to compensate for R&D contributions, local economic contributions, and purchases of property, plant, and equipment projects[108](index=108&type=chunk) - Performance obligations are satisfied upon delivery of smart visual products and systems, with payments generally due 60 to 120 days from delivery[107](index=107&type=chunk) [Profit Before Tax](index=34&type=section&id=Profit%20Before%20Tax) The Group's profit before tax from continuing operations was RMB 13,965 thousand, a significant decrease from RMB 53,086 thousand in the same period last year, with major costs including cost of inventories sold, depreciation, R&D costs, and employee benefit expenses 2025 First Half Major Deductions/Additions to Profit Before Tax | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 944,863 | 873,922 | | Depreciation of property, plant and equipment | 56,052 | 61,164 | | Research and development costs | 55,696 | 44,638 | | Total employee benefit expenses | 189,579 | 161,225 | - Research and development costs increased by **24.8%** year-on-year, and total employee benefit expenses increased by **17.6%** year-on-year[109](index=109&type=chunk) [Income Tax](index=35&type=section&id=Income%20Tax) The Group is subject to income tax on an entity basis, with Hong Kong subsidiaries having no taxable profits, and Mainland China subsidiaries enjoying preferential tax rates of 15% or 25% depending on their status 2025 First Half Income Tax Expense | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | 1,950 | 3,122 | | Deferred income tax | 783 | 185 | | **Total** | **2,733** | **3,307** | - The company and certain subsidiaries enjoy a preferential tax rate of **15%** as high-tech enterprises or located in the Nansha Pilot Free Trade Zone[114](index=114&type=chunk) [Dividends](index=36&type=section&id=Dividends) For the six months ended June 30, 2025, the company declared and paid a final dividend of RMB 36,526 thousand for the previous year 2025 First Half Dividends Declared | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final dividend declared and paid for the previous year during the subsequent year (tax inclusive) | 36,526 | — | [Earnings Per Share Attributable to Owners of the Parent](index=36&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the parent were RMB 0.02, calculated based on a weighted average of 537,146,709 ordinary shares outstanding 2025 First Half Earnings Per Share Calculation | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company (RMB thousand) | 11,232 | 49,779 | | Weighted average number of ordinary shares outstanding during the period (thousand shares) | 537,147 | 496,583 | | Basic and diluted earnings per share (RMB) | 0.02 | 0.10 | - No diluted adjustment was made to the basic earnings per share amount presented for the reporting period as the Group had no potentially dilutive ordinary shares outstanding during the period[117](index=117&type=chunk) [Property, Plant and Equipment](index=37&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired assets of approximately RMB 95,497 thousand, incurred depreciation of RMB 56,052 thousand, and disposed of assets with a net book value of RMB 412 thousand, resulting in a net loss on disposal of RMB 135 thousand 2025 First Half Property, Plant and Equipment Movements | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Cost of assets acquired | 95,497 | 51,311 | | Depreciation | 56,052 | 61,164 | | Net book value of assets disposed of | 412 | 497 | | Net loss on disposal | 135 | 360 | [Inventories](index=37&type=section&id=Inventories) As of June 30, 2025, the Group's total inventories amounted to RMB 249,606 thousand, a decrease from RMB 284,911 thousand at the end of 2024, primarily comprising raw materials, work-in-progress, finished goods, and contract costs Inventory Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials and consumables | 77,299 | 96,132 | | Work-in-progress | 29,771 | 30,789 | | Finished goods | 120,173 | 132,046 | | Contract costs | 22,363 | 25,944 | | **Total** | **249,606** | **284,911** | [Trade and Bills Receivables](index=37&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables amounted to RMB 960,134 thousand, a decrease from the end of 2024, with credit terms typically ranging from 60 to 120 days Trade and Bills Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 897,236 | 941,321 | | Bills receivable | 83,063 | 172,616 | | Impairment | (20,165) | (21,446) | | **Total** | **960,134** | **1,092,491** | - The Group primarily enters into trade terms with its customers on credit, with credit periods typically ranging from **60 to 120 days**[123](index=123&type=chunk) - The Group is committed to strictly controlling its outstanding receivables and has a credit control department to minimize credit risk[123](index=123&type=chunk) [Trade and Bills Payables](index=38&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables amounted to RMB 901,706 thousand, a decrease from RMB 1,178,783 thousand at the end of 2024, with trade payables to third parties being interest-free and generally settled within one to three months Trade Payables Aging Analysis (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 897,797 | 1,175,611 | | 1 to 2 years | 1,996 | 2,035 | | 2 to 3 years | 835 | 59 | | Over 3 years | 1,078 | 1,078 | | **Total** | **901,706** | **1,178,783** | - Trade payables to third parties of the company are interest-free and generally settled within one to three months from the invoice date[125](index=125&type=chunk) [Other Payables and Accrued Expenses](index=39&type=section&id=Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, total other payables and accrued expenses amounted to RMB 348,242 thousand, a decrease from RMB 491,985 thousand at the end of 2024, primarily including salaries and welfare payable, other payables, dividends payable, and other taxes payable Other Payables and Accrued Expenses (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Deposits received | 2,547 | 2,280 | | Salaries and welfare payable | 37,576 | 48,931 | | Other payables | 261,228 | 223,452 | | Dividends payable | 36,526 | — | | Government subsidies payable | — | 200,000 | | Other taxes payable | 10,365 | 17,322 | | **Total** | **348,242** | **491,985** | [Share Capital](index=39&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital was RMB 537,147 thousand, with 537,146,709 ordinary shares of RMB 1.00 par value each, consistent with the end of 2024 Summary of Share Capital Movements | Item | Number of shares issued | Share capital (RMB thousand) | | :--- | :--- | :--- | | As at January 1, 2024 | 480,078,011 | 480,078 | | New shares issued for share incentive schemes | 18,428,698 | 18,429 | | New shares issued for initial public offering | 38,640,000 | 38,640 | | **As at December 31, 2024 and June 30, 2025** | **537,146,709** | **537,147** | [Share-based Payments](index=40&type=section&id=Share-based%20Payments) The company has Share Incentive Schemes I, II, and III, granting restricted shares to employees and directors through employee shareholding platforms, which vest upon meeting specific conditions - The company granted restricted share schemes ("Share Incentive Scheme I") to employees and directors of the Group and established new employee shareholding platforms under Share Incentive Scheme II and Share Incentive Scheme III[129](index=129&type=chunk) - Shares granted to employees under Share Incentive Scheme III shall vest in four equal tranches over a four-year period upon completion of the company's public offering, expiry of the corresponding lock-up period, and achievement of annual performance milestones[129](index=129&type=chunk) Number of Restricted Shares (thousand shares) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Restricted shares granted by the Company under the schemes | 32,534 | 32,534 | [Commitments](index=40&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments primarily related to the acquisition of property, plant and equipment and intangible assets, with total contracted but unexpended capital expenditures of RMB 346,707 thousand, mainly for the construction of Guangzhou Lingwei Capital Commitments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Construction in progress | 346,707 | 70,626 | - Capital commitments primarily relate to the acquisition of property, plant and equipment and intangible assets, mainly for the construction investment of Guangzhou Lingwei[132](index=132&type=chunk) [Related Party Transactions](index=41&type=section&id=Related%20Party%20Transactions) The Group engaged in transactions with various related parties, including Geely-affiliated entities and Epistar Corporation, with significant sales and purchases of goods and services, and outstanding trade receivables and payables balances 2025 First Half Related Party Transactions Summary (RMB thousand) | Transaction Type | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue from goods and services | 365,488 | 448,595 | | Purchase of goods and services | 64,526 | 77,686 | 2025 June 30 Outstanding Balances with Related Parties Summary (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade and bills receivables | 201,102 | 263,558 | | Trade payables | 49,311 | 66,484 | - Sales to and purchases from related parties were conducted at published prices and terms, and credit periods granted by related parties were generally consistent with those granted to major customers[135](index=135&type=chunk)[136](index=136&type=chunk) [Names and Relationships of Related Parties](index=41&type=section&id=Names%20and%20Relationships%20of%20Related%20Parties) This section lists the names of the Group's major related parties and their relationships with the company, including shareholders holding over 5% indirect or direct equity, entities controlled by the ultimate controlling shareholder, and Geely-affiliated entities - Related parties include Epistar Corporation (shareholder holding over 5% indirect equity), Zhejiang Yaoning Technology Group Co., Ltd. (shareholder holding over 5% direct equity), and multiple Geely-affiliated entities[134](index=134&type=chunk) - Guangdong Xinyueneng Semiconductor Co., Ltd. and Guangdong Xinjuneng Semiconductor Co., Ltd. are controlled by the company's ultimate controlling party[134](index=134&type=chunk) [Remuneration of Directors, Supervisors and Chief Executives](index=44&type=section&id=Remuneration%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executives) For the six months ended June 30, 2025, the total remuneration for directors, supervisors, and chief executives was RMB 4,685 thousand, including fees, salaries, allowances, performance-related bonuses, share-based payment expenses, and pension scheme contributions 2025 First Half Remuneration of Directors, Supervisors and Chief Executives (RMB thousand) | Remuneration Category | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Fees | 355 | 354 | | Salaries, allowances and benefits in kind | 2,476 | 2,106 | | Performance-related bonuses | 411 | 213 | | Share-based payment expenses | 1,346 | 2,053 | | Pension scheme contributions | 97 | 91 | | **Total** | **4,685** | **4,817** | - Total fees for independent non-executive directors were **RMB 355 thousand**, with Ms. Zhang He, Ms. Lin Nan, and Ms. Ding Hui each receiving RMB 80 thousand, and Mr. Chen Zhiguang receiving RMB 115 thousand[142](index=142&type=chunk) - Total remuneration for Executive Directors Mr. Xiao Guowei and Mr. Hou Yu was **RMB 2,325 thousand** and **RMB 1,315 thousand**, respectively[143](index=143&type=chunk) [Other Transactions](index=48&type=section&id=Other%20Transactions) On June 25, 2025, the company subscribed for shares in Cao Cao Mobility Limited's international offering at a cost of approximately RMB 14,350 thousand, which is classified as a financial asset measured at fair value through profit or loss - The company subscribed for shares in Cao Cao Mobility Limited's international offering at a cost of approximately **RMB 14,350 thousand**[149](index=149&type=chunk) - This investment is classified as a financial asset measured at fair value through profit or loss, with a fair value of approximately **RMB 12,099 thousand** as of June 30, 2025[149](index=149&type=chunk) [Fair Value and Fair Value Hierarchy of Financial Instruments](index=49&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) The carrying amounts of the Group's financial instruments approximate their fair values in the short term, and management has assessed that the fair values of current instruments like cash and cash equivalents and receivables/payables are similar to their carrying amounts Carrying Amounts and Fair Values of Financial Instruments (RMB thousand) | Item | June 30, 2025 Carrying Amount | December 31, 2024 Carrying Amount | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :--- | :--- | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 83,343 | 42,613 | 83,343 | 42,613 | | Interest-bearing bank and other borrowings | 52,512 | 65,237 | 52,049 | 64,773 | - Management has assessed that the fair values of current instruments such as cash and cash equivalents, restricted deposits, and trade receivables approximate their carrying amounts, primarily due to their short-term maturity[150](index=150&type=chunk) [Approval of Financial Information](index=49&type=section&id=Approval%20of%20Financial%20Information) The interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 28, 2025 - The interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 28, 2025[153](index=153&type=chunk) [Definitions](index=50&type=section&id=Definitions) This section provides definitions for key terms used throughout the report, covering company entities, legal documents, committees, geographical areas, share types, listing-related terms, and major shareholders and related parties [Definitions of Key Terms](index=50&type=section&id=Definitions%20of%20Key%20Terms) This section provides definitions for key terms used in the report, including company entities, legal documents, committees, geographical areas, share types, listing-related terms, and major shareholders and related parties - Definitions are provided for company and governance-related terms such as "Microcrystal Advanced Optoelectronics," "Audit Committee," "Corporate Governance Code," "the Company," "Controlling Shareholder," "Directors," "Global Offering," "the Group," and "H Shares"[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - Explanations are given for terms related to employee shareholding platforms and controlling shareholder group members, including "Jingling Investment," "Jingrui Investment," "Jingshi Investment," and "Jingyu Investment"[155](index=155&type=chunk) [Glossary of Technical Terms](index=54&type=section&id=Glossary%20of%20Technical%20Terms) This section explains various technical terms used in the report, covering automotive smart vision, LED technology, display technology, and related industry terms, to aid reader comprehension of specialized content [Explanation of Technical Terms](index=54&type=section&id=Explanation%20of%20Technical%20Terms) This section explains various technical terms used in the report, covering automotive smart vision, LED technology, display technology, and related industry terms, to aid reader comprehension of specialized content - Explanations are provided for automotive smart vision and LED technology-related terms such as "ADB" (Adaptive Driving Beam), "AI" (Artificial Intelligence), "COB" (Chip-on-Board), and "LED+ Technology"[161](index=161&type=chunk) - Explanations are given for new display technology-related terms such as "Local Dimming," "Mini LED," and "Micro LED"[163](index=163&type=chunk)

Financial Performance - Revenue decreased by approximately 0.4% from about HKD 117.8 million in the first half of 2024 to about HKD 117.3 million in the first half of 2025[2] - Gross profit fell by approximately 5.5% from about HKD 87.4 million in the first half of 2024 to about HKD 82.6 million in the first half of 2025, with a gross profit margin decline of 3.7 percentage points to 70.5%[2] - The group recorded a net loss of approximately HKD 7.5 million in the first half of 2025, compared to a net profit of approximately HKD 7.5 million in the first half of 2024[2] - Total revenue for the six months ended June 30, 2025, was HKD 117,292,000, slightly down from HKD 117,811,000 in the same period of 2024, representing a decrease of 0.44%[12] - Retail business revenue increased to HKD 71,484,000 in 2025 from HKD 69,035,000 in 2024, marking a growth of 3.54%[12] - The basic and diluted loss per share for the first half of 2025 was HKD 5.65, compared to earnings per share of HKD 7.48 for the first half of 2024[3] - Basic loss per share for the six months ended June 30, 2025, was HKD 0.0564, compared to a profit of HKD 0.0748 per share in 2024[23] Dividend and Shareholder Returns - The board does not recommend the payment of an interim dividend for the six months ending June 30, 2025, compared to HKD 30 million for the same period in 2024[2] - The interim dividend declared for the six months ended June 30, 2024, amounted to HKD 30,000,000[34] - The company approved and paid a final dividend of HKD 20,000,000 for the previous fiscal year during the interim period[35] Assets and Liabilities - Total assets decreased from HKD 197.5 million as of December 31, 2024, to HKD 174.7 million as of June 30, 2025[4] - Current liabilities increased slightly from HKD 37.5 million as of December 31, 2024, to HKD 37.8 million as of June 30, 2025[4] - Non-current assets decreased from HKD 44.5 million as of December 31, 2024, to HKD 34.4 million as of June 30, 2025[4] - Cash and cash equivalents decreased from HKD 119.2 million as of December 31, 2024, to HKD 89.8 million as of June 30, 2025[4] - Trade receivables, net of loss provisions, decreased to HKD 25,242,000 as of June 30, 2025, from HKD 26,293,000 as of December 31, 2024, a decline of 4%[29] - Trade payables increased to HKD 4,677,000 as of June 30, 2025, compared to HKD 3,782,000 as of December 31, 2024, an increase of 23.6%[32] - Cash and cash equivalents stood at HKD 89,755,000 as of June 30, 2025, down from HKD 119,215,000 as of December 31, 2024, representing a decrease of 24.7%[31] Operational Costs - Employee costs increased to HKD 43,506,000 in 2025 from HKD 34,787,000 in 2024, reflecting a rise of 25.00%[19] - Depreciation expenses for property, plant, and equipment amounted to HKD 10,771,000 in 2025, up from HKD 9,682,000 in 2024, an increase of 11.25%[20] - Sales and distribution costs increased by approximately HKD 17.4 million or 35.3% in the first half of 2025, primarily due to increased advertising and promotional expenses related to new products and brand development[48] - Administrative and other operating expenses rose by approximately HKD 8.1 million or 43.8% in the first half of 2025, mainly due to increased employee costs and higher depreciation from an increase in the average number of self-operated retail stores from 26 to 33[49] - Financing costs increased by approximately HKD 104,000 or 21.7% to about HKD 583,000 in the first half of 2025, attributed to higher interest expenses from lease liabilities due to an increase in the average number of self-operated retail stores[51] Inventory and Impairment - The inventory of health and beauty products increased to HKD 33,883,000 as of June 30, 2025, compared to HKD 22,992,000 as of December 31, 2024, reflecting a growth of 47.5%[28] - The company recognized an impairment loss of HKD 1,036,000 for certain underperforming retail stores in 2025, compared to no impairment loss in 2024[27] - The provision for obsolete inventory decreased to HKD 59,000 as of June 30, 2025, from HKD 126,000 as of December 31, 2024[28] Capital Expenditures and Funding - Capital expenditures in the first half of 2025 were approximately HKD 0.2 million, a significant decrease from approximately HKD 3.2 million in the first half of 2024, with future capital expenditures expected to increase as business grows[59] - The company raised approximately HKD 125,001,000 from the issuance of 33,333,600 new ordinary shares at an issue price of HKD 3.75 per share[37] - The net proceeds from the global issuance of 33,333,600 shares at HKD 3.75 per share amounted to approximately HKD 94.4 million after deducting underwriting fees and other expenses[76] - The planned use of net proceeds includes 35.7% for marketing and promotional activities to enhance brand recognition, totaling approximately HKD 33.7 million[77] - 37.8% of the proceeds, approximately HKD 35.7 million, is allocated for expanding and optimizing the sales network[77] - 12.4% of the proceeds, approximately HKD 11.7 million, is designated for talent recruitment[77] - The total amount of net proceeds utilized as of the reporting period was HKD 18.3 million, leaving HKD 76.1 million unutilized[77] Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting and internal controls[80] - The interim financial report for the six months ending June 30, 2025, has been reviewed by an independent auditor in accordance with Hong Kong standards[81] - The interim results announcement and report will be published on the company's website and the Hong Kong Stock Exchange website[82] - The company has maintained sufficient public float as per listing rules during the reporting period and up to the announcement date[74] Future Outlook - The group plans to continue product innovation and development, focusing on launching the product "Herbs Tiger Milk Cough Relief" and the new brand "MedHerbs" in the second half of 2025[40] - The group operates nine proprietary brands as of June 30, 2025, including "Herbs," "ZINO," and "MedHerbs"[38] - The group confirmed the recognition of all revenue upon customer ownership and acceptance of products, adhering to HKFRS 15[12] - The group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024[61] - No significant investments or plans for major acquisitions or disposals of subsidiaries, joint ventures, or associates were reported for the first half of 2025[65][66]

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 而產生或因依賴該等內容而引致的任何損失承擔任何責任。 上海醫藥集團股份有限公司 Shanghai Pharmaceuticals Holding Co., Ltd.* （於中華人民共和國註冊成立的股份有限公司） （股份代碼：02607) 截至2025年6月30日六個月未經審計中期業績公告 上海醫藥集團股份有限公司（「本公司」）董事會（「董事會」）欣然發佈本公司及其附屬公司 （合稱「本集團」）截至2025年6月30日六個月的中期業績。該中期業績乃根據中國企業會 計準則編製，未經審計。董事會及審計委員會已審閱並確認此中期業績。 本公司截至2025年6月30日六個月的中期報告全文附於本公告後。正式中期報告 將於適當時候在香港聯合交易所有限公司的網站(www.hkexnews.hk)和本公司網站 (www.sphchina.com)刊登。 承董事會命 上海醫藥集團股份有限公司 楊秋華 董事長 中國上海，二零二五年八月二十九日 於本公告日期，本公司的執行董事為楊秋華 ...

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。 本公司董事會、監事會及董事、監事、高級管理人員保證本中期業績公告內容的真實性、準確性、完整性，不存 在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 本中期業績公告經本公司第八屆董事會第三十七次會議審議通過。公司全體董事出席董事會會議，未有董事對本 中期業績公告提出異議。 本中期業績公告未經審計。畢馬威華振會計師事務所（特殊普通合夥）和畢馬威會計師事務所分別根據中國和國際 審閱準則出具了審閱意見。 公司負責人張佑君先生、主管會計工作負責人張皓先生及會計機構負責人西志穎女士聲明：保證本中期業績公告 中財務報告的真實、準確、完整。 董事會決議通過的本報告期利潤分配方案：每10股派發現金紅利人民幣2.90元（含稅）。此方案尚需公司股東大會 批准。 前瞻性陳述的風險聲明：本中期業績公告所涉及的未來計劃、發展戰略等前瞻性描述不構成本公司對投資者的實 質承諾，敬請投資者注意投資風險。 （ 於 中 華 人 ...

[Company Overview and Performance Summary](index=1&type=section&id=Company%20Overview%20and%20Performance%20Summary) This section provides an overview of the company's business and a summary of its financial performance for the period [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) Green Fresh Biotechnology Company Limited (formerly Green Future Food Hydrocolloid Marine Science Company Limited) announced an unaudited condensed consolidated interim net loss of RMB 12.3 million for the six months ended June 30, 2025, compared to a net profit of RMB 22.6 million in the prior year, primarily due to decreased revenue and narrower gross margin - The Board does not recommend the payment of an interim dividend for the first half of 2025[2](index=2&type=chunk) Key Financial Indicators Comparison for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 410.0 | 459.0 | -10.7% | - | | Gross profit | 60.1 | 98.8 | -39.2% | - | | Gross margin | 14.7% | 21.5% | - | -6.8 | | Net loss/profit | (12.3) | 22.6 | Turned to loss | - | | Net loss/profit margin | -3.0% | 4.9% | - | -7.9 | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, including the income statement, comprehensive income statement, balance sheet, statement of changes in equity, and cash flow statement [Condensed Consolidated Statement of Profit or Loss for the Interim Period](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20for%20the%20Interim%20Period) For the six months ended June 30, 2025, the company's revenue decreased by 10.7% year-on-year to RMB 409,977 thousand, and gross profit significantly decreased by 39.2% to RMB 60,053 thousand, resulting in a net loss of RMB 12,301 thousand compared to a net profit of RMB 22,624 thousand in the prior year Key Data from Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 409,977 | 459,015 | -10.7% | | Cost of sales | (349,924) | (360,168) | -2.8% | | Gross profit | 60,053 | 98,847 | -39.2% | | Operating (loss)/profit | (3,611) | 46,397 | Turned to loss | | (Loss)/Profit for the period | (12,301) | 22,624 | Turned to loss | | Basic (loss)/earnings per share (RMB) | (0.014) | 0.028 | Turned to loss | [Condensed Consolidated Statement of Comprehensive Income for the Interim Period](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income%20for%20the%20Interim%20Period) The total comprehensive loss for the period was RMB 11,331 thousand, compared to a total comprehensive income of RMB 20,534 thousand in the prior year, mainly due to the combined effect of loss for the period and currency translation differences Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | (Loss)/Profit for the period | (12,301) | 22,624 | | Currency translation differences (may be reclassified to profit or loss) | 3,661 | (2,090) | | Currency translation differences (will not be reclassified to profit or loss) | (2,691) | — | | Total comprehensive (loss)/income for the period | (11,331) | 20,534 | [Condensed Consolidated Statement of Financial Position for the Interim Period](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20for%20the%20Interim%20Period) As of June 30, 2025, total assets were RMB 1,555,511 thousand, a slight decrease from December 31, 2024; total current assets were RMB 1,025,742 thousand, with an increase in inventories and a decrease in cash and bank balances; total equity and total liabilities both decreased Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 1,555,511 | 1,572,268 | -1.07% | | Total non-current assets | 529,769 | 533,583 | -0.71% | | Total current assets | 1,025,742 | 1,038,685 | -1.25% | | Inventories | 773,188 | 747,713 | +3.41% | | Cash and bank balances | 81,315 | 120,734 | -32.65% | | Total equity | 829,977 | 850,142 | -2.37% | | Total liabilities | 725,534 | 722,126 | +0.47% | | Total non-current liabilities | 134,317 | 126,366 | +6.30% | | Total current liabilities | 591,217 | 595,760 | -0.76% | [Condensed Consolidated Statement of Changes in Equity for the Interim Period](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity%20for%20the%20Interim%20Period) As of June 30, 2025, total equity attributable to owners of the Company was RMB 820,145 thousand, a decrease from the beginning of the period, mainly due to a loss of RMB 12,068 thousand for the period and dividends paid of RMB 9,020 thousand Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | Balance at January 1, 2025 (RMB thousand) | Balance at June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 839,870 | 820,145 | | Loss for the period | (12,068) | - | | Final dividend paid for 2025 | (9,020) | - | [Condensed Consolidated Statement of Cash Flows for the Interim Period](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20for%20the%20Interim%20Period) For the six months ended June 30, 2025, net cash inflow from operating activities was RMB 14,649 thousand, a significant decrease from the prior year; net cash used in investing activities was RMB 18,495 thousand, and net cash used in financing activities was RMB 35,706 thousand, resulting in a decrease in cash and cash equivalents at the end of the period Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities | 14,649 | 45,391 | -67.7% | | Net cash used in investing activities | (18,495) | (20,590) | -10.2% | | Net cash used in financing activities | (35,706) | (33,129) | +7.78% | | Net decrease in cash and cash equivalents | (39,552) | (8,328) | +375% | | Cash and cash equivalents at end of period | 81,315 | 64,556 | +26.0% | [Notes to the Condensed Consolidated Financial Information](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the condensed consolidated financial information, explaining the basis of preparation, significant accounting policies, and other relevant financial details [1 General Information of the Group](index=10&type=section&id=1%20General%20Information%20of%20the%20Group) Green Fresh Biotechnology Company Limited (formerly Green Future Food Hydrocolloid Marine Science Company Limited), incorporated in the Cayman Islands, primarily manufactures and sells food hydrocolloid products, including carrageenan, agar, compound, and konjac products, in China and overseas, with shares listed on the Hong Kong Stock Exchange since October 17, 2019 - The company's English name has been changed from "Green Future Food Hydrocolloid Marine Science Company Limited" to "Green Fresh Biotechnology Company Limited", and its Chinese name from "綠新親水膠體海洋科技有限公司" to "綠新生物科技有限公司", effective from July 17, 2025[11](index=11&type=chunk) - The Group is principally engaged in the manufacture and sale of food hydrocolloid products, including carrageenan products, agar products, compound products, and konjac products, in China and overseas[12](index=12&type=chunk) [2 Basis of Preparation](index=11&type=section&id=2%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - Income tax for the interim period is accrued using the tax rate that would be applicable to the expected total annual earnings[18](index=18&type=chunk) [3 Significant Accounting Policies](index=11&type=section&id=3%20Significant%20Accounting%20Policies) The principal accounting policies adopted in preparing this condensed consolidated interim financial information are consistent with those used in the annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of certain new and revised standards which did not have a significant impact on the Group's interim results and financial position - The new and revised standards adopted by the Group, such as HKAS 21 (Amendment) – Lack of Exchangeability, did not have a significant impact on the Group's interim results and financial position[18](index=18&type=chunk)[20](index=20&type=chunk) - New and revised standards not yet effective include HKFRS 9 and 7 (Amendments) – Amendments to Classification and Measurement of Financial Instruments, Annual Improvements to HKFRS Standards – Volume 11 (effective January 1, 2026), and HKFRS 18 and 19 (Amendments) (effective January 1, 2027)[21](index=21&type=chunk) [4 Critical Accounting Estimates and Judgements](index=12&type=section&id=4%20Critical%20Accounting%20Estimates%20and%20Judgements) The significant judgments made by management and key sources of estimation uncertainty in preparing the interim condensed consolidated financial information are the same as those applied in the annual consolidated financial statements for the year ended December 31, 2024 [5 Financial Risk Management](index=13&type=section&id=5%20Financial%20Risk%20Management) The Group is exposed to market risks (foreign exchange, interest rates), credit risk, and liquidity risk, with risk management policies remaining unchanged since the end of last year; liquidity risk analysis shows total contractual undiscounted cash flows of RMB 703,723 thousand as of June 30, 2025 - The carrying amounts of the Group's liquid financial assets and liabilities approximate their fair values at the reporting date due to their short maturities[29](index=29&type=chunk) Financial Liabilities Liquidity Risk Analysis (June 30, 2025) | Term | Less than 1 year (RMB thousand) | 1 to 2 years (RMB thousand) | 2 to 5 years (RMB thousand) | Over 5 years (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank borrowings | 436,481 | 44,950 | 66,029 | 250 | 547,710 | | Interest payable on borrowings | 12,489 | 3,479 | 4,965 | 4 | 20,937 | | Lease liabilities | 1,415 | 1,415 | 196 | — | 3,026 | | Trade and other payables | 132,050 | — | — | — | 132,050 | | **Total** | **582,435** | **49,844** | **71,190** | **254** | **703,723** | [6 Revenue and Segment Information](index=15&type=section&id=6%20Revenue%20and%20Segment%20Information) The Group's chief operating decision maker reviews performance from a product perspective, identifying five operating segments: agar, carrageenan, konjac products, compound products, and others; for the six months ended June 30, 2025, total revenue was RMB 409,977 thousand, with carrageenan sales being the largest contributor, but overall revenue and segment results decreased year-on-year - The Group's five operating segments are: agar manufacturing and sales, carrageenan manufacturing and sales, konjac product manufacturing and sales, compound product manufacturing and sales, and others (such as seaweed powder manufacturing and sales)[30](index=30&type=chunk)[31](index=31&type=chunk) Segment Revenue and Results (H1 2025) | Segment | Revenue (RMB thousand) | Cost of Sales (RMB thousand) | Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | | Agar sales | 124,418 | (92,147) | 32,271 | | Carrageenan sales | 186,443 | (182,228) | 4,215 | | Konjac product sales | 35,865 | (29,711) | 6,154 | | Compound product sales | 55,250 | (40,882) | 14,368 | | Others | 8,001 | (4,956) | 3,045 | | **Total** | **409,977** | **(349,924)** | **60,053** | Revenue from External Customers by Country/Region | Country/Region | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | China | 189,308 | 245,862 | -23.0% | | Europe | 124,373 | 111,562 | +11.5% | | Asia (excluding China) | 61,766 | 76,934 | -19.7% | | South America | 19,916 | 16,203 | +22.9% | | North America | 11,796 | 7,644 | +54.3% | | Africa | 2,700 | 682 | +296% | | Oceania | 118 | 128 | -7.8% | | **Total** | **409,977** | **459,015** | **-10.7%** | [7 Profit Before Income Tax](index=19&type=section&id=7%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, loss before income tax was RMB 16,359 thousand, compared to a profit of RMB 29,991 thousand in the prior year, mainly impacted by increased employee benefit expenses, utilities expenses, and net impairment losses on financial assets Composition of (Loss)/Profit Before Income Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Government grants | 2,583 | 5,097 | | Employee benefit expenses | 61,026 | 56,056 | | Depreciation of property, plant and equipment | 21,634 | 23,225 | | Utilities expenses | 14,831 | 13,178 | | Interest and finance costs on bank borrowings | 13,118 | 16,039 | | Net impairment losses on financial assets | 1,233 | — | [8 Income Tax Expense](index=20&type=section&id=8%20Income%20Tax%20Expense) The Group recorded an income tax credit of RMB 4,058 thousand in H1 2025, compared to an income tax expense of RMB 7,367 thousand in the prior year, primarily due to deferred income tax credits; Chinese subsidiaries enjoy preferential tax rates, such as 15% for Luqi (Fujian) and 12.5% for Donghaiwan Composition of Income Tax Expense | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | 654 | 3,432 | | Deferred income tax | (4,712) | 3,935 | | **Income tax credit/(expense)** | **(4,058)** | **7,367** | - Chinese subsidiaries Fujian Luqi Food Hydrocolloid Co., Ltd. (Luqi (Fujian)) enjoys a preferential income tax rate of **15%**, and Longhai Donghaiwan Seaweed Aquaculture Comprehensive Development Co., Ltd. (Donghaiwan) enjoys a preferential income tax rate of **12.5%**[39](index=39&type=chunk) - The holding company of the Group's Chinese subsidiaries, incorporated in Hong Kong, is subject to a **5%** withholding tax[39](index=39&type=chunk) [9 Earnings Per Share](index=22&type=section&id=9%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to ordinary equity holders of the Company was RMB 0.014, compared to earnings per share of RMB 0.028 in the prior year, reflecting a turn from profit to loss in the current period Basic and Diluted (Loss)/Earnings Per Share | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Basic (loss)/earnings per share | (0.014) | 0.028 | | Diluted (loss)/earnings per share | (0.014) | 0.028 | Reconciliation of (Loss)/Profit for Calculating (Loss)/Earnings Per Share | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | (Loss)/Profit attributable to ordinary equity holders of the Company | (12,068) | 23,086 | [10 Dividends](index=23&type=section&id=10%20Dividends) The Board of Directors did not propose an interim dividend for the first half of 2025, consistent with the situation in 2024 - The Board did not propose an interim dividend for the first half of 2025[42](index=42&type=chunk) [11 Property, Plant and Equipment, Intangible Assets and Land Use Rights](index=24&type=section&id=11%20Property,%20Plant%20and%20Equipment,%20Intangible%20Assets%20and%20Land%20Use%20Rights) As of June 30, 2025, the carrying value of property, plant and equipment was RMB 363,789 thousand, land use rights were RMB 51,772 thousand, and intangible assets were RMB 65,329 thousand, with additions, depreciation, and amortization recorded during the period Changes in Property, Plant and Equipment, Intangible Assets and Land Use Rights | Item | January 1, 2025 (RMB thousand) | Additions (RMB thousand) | Depreciation/Amortization (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Property, plant and equipment | 372,947 | 13,100 | (21,634) | 363,789 | | Land use rights | 52,593 | — | (599) | 51,772 | | Intangible assets (goodwill and others) | 67,143 | 17 | (1,290) | 65,329 | - The land use rights and buildings pledged for bank borrowings by the Group as of June 30, 2025, are detailed in Note 17(a)[44](index=44&type=chunk) [12 Cash and Bank Balances](index=25&type=section&id=12%20Cash%20and%20Bank%20Balances) As of June 30, 2025, total cash and bank balances were RMB 106,435 thousand, a decrease from RMB 141,436 thousand as of December 31, 2024, with restricted cash held as collateral Cash and Bank Balances | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash on hand and at bank | 81,315 | 120,734 | | Restricted cash – bank cash | 25,120 | 20,702 | | **Total cash and bank balances** | **106,435** | **141,436** | - Restricted cash represents deposits held at banks as collateral for the Group's bills payable and letters of credit[45](index=45&type=chunk) [13 Trade and Other Receivables](index=26&type=section&id=13%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were RMB 146,119 thousand, a slight decrease from December 31, 2024, with the largest portion of trade receivables aged within 30 days Trade and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 113,359 | 112,753 | | Prepayments for raw material purchases | 8,096 | 12,095 | | Export tax rebates and deductible VAT receivable | 12,842 | 10,568 | | Other receivables | 11,822 | 14,120 | | **Total trade and other receivables** | **146,119** | **149,536** | Ageing Analysis of Trade Receivables (June 30, 2025) | Ageing | Amount (RMB thousand) | | :--- | :--- | | Up to 30 days | 62,269 | | 31 to 90 days | 32,028 | | 91 to 180 days | 2,056 | | 181 to 365 days | 8,774 | | Over one year | 11,349 | | **Total** | **116,476** | [14 Share Capital](index=27&type=section&id=14%20Share%20Capital) As of June 30, 2025, the Company's share capital was RMB 7,892 thousand, with 874,120,000 shares outstanding, remaining unchanged from the beginning of the period, while new shares were issued in the prior year due to the exercise of share options Changes in Share Capital | Item | June 30, 2025 (Shares) | June 30, 2025 (RMB thousand) | June 30, 2024 (Shares) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | At January 1 | 874,120,000 | 7,892 | 829,688,000 | 7,485 | | Shares issued upon exercise of share options | — | — | 4,432,000 | 40 | | **At June 30** | **874,120,000** | **7,892** | **834,120,000** | **7,525** | [15 Share-based Payment](index=27&type=section&id=15%20Share-based%20Payment) For the period ended June 30, 2025, total share-based payment expenses were RMB 1,227 thousand, primarily from share award schemes; the share option scheme was fully exercised by June 30, 2025, with no outstanding share options Share-based Payment Expenses | Scheme | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Share option scheme | — | 341 | | Share award scheme (b) | 837 | 1,502 | | Share award scheme (c) | 390 | 191 | | **Total** | **1,227** | **2,034** | - As of June 30, 2025, the share option scheme has been fully exercised, with **no outstanding share options**[50](index=50&type=chunk) - Share award scheme (b) granted to three employees had **1,720,000 outstanding award shares** as of June 30, 2025, with a remaining unamortized fair value of approximately **RMB 1,763,000**[53](index=53&type=chunk)[54](index=54&type=chunk) - Share award scheme (c) granted to five employees had **2,280,000 outstanding award shares** as of June 30, 2025, with a remaining unamortized fair value of approximately **RMB 1,032,000**[57](index=57&type=chunk)[58](index=58&type=chunk) [16 Trade and Other Payables](index=33&type=section&id=16%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were RMB 151,337 thousand, an increase from December 31, 2024, with trade payables primarily due within 90 days Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 116,322 | 93,302 | | Payables for property, plant and equipment | 1,950 | 3,873 | | Contract liabilities – customer advances | 7,597 | 7,500 | | Employee benefits payable | 8,372 | 8,094 | | Other taxes payable | 3,318 | 3,660 | | Others | 13,778 | 12,813 | | **Total** | **151,337** | **129,242** | Ageing Analysis of Trade Payables (June 30, 2025) | Ageing | Amount (RMB thousand) | | :--- | :--- | | 0 to 90 days | 96,020 | | 91 to 180 days | 10,018 | | 181 to 365 days | 10,284 | | **Total** | **116,322** | [17 Bank Borrowings and Lease Liabilities](index=34&type=section&id=17%20Bank%20Borrowings%20and%20Lease%20Liabilities) As of June 30, 2025, the Group's total borrowings were RMB 547,710 thousand, predominantly bank borrowings, with secured bank borrowings collateralized by land use rights and buildings; the weighted average effective interest rate for bank borrowings was 3.93%, a decrease from the prior year Total Bank Borrowings and Lease Liabilities | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total bank borrowings | 530,710 | 544,592 | | Loans from third parties | 17,000 | 17,000 | | Lease liabilities | 2,843 | 3,534 | | **Total borrowings** | **550,553** | **565,126** | Pledged Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Land use rights | 28,484 | 28,895 | | Buildings | 55,812 | 58,307 | | **Total assets pledged as collateral** | **84,296** | **87,202** | - For the six months ended June 30, 2025, the weighted average effective interest rate for bank borrowings was **3.93%** (H1 2024: 5.34%)[63](index=63&type=chunk) - The Group's unsecured bank borrowings are supported by personal guarantees from Mr. Chen Jincang and Mr. Guo Dongxu, with guarantee amounts of **RMB 73,791,000** and **RMB 10,000,000** respectively[63](index=63&type=chunk) - A long-term loan of **RMB 17,000,000** from a third party (Zhangzhou Longhai District Xinwan Industrial Investment Co., Ltd.) for Xiamen Blue Seaweed Film Biotechnology Co., Ltd.'s biodegradable biopolysaccharide film cultivation program has a fixed return rate of **8.0% per annum**[64](index=64&type=chunk) [17 Bank Borrowings and Lease Liabilities (c) Lease Liabilities](index=36&type=section&id=17%20Bank%20Borrowings%20and%20Lease%20Liabilities%20(c)%20Lease%20Liabilities) As of June 30, 2025, total lease liabilities were RMB 2,843 thousand, primarily related to the Group's buildings, with RMB 1,270 thousand due within one year Lease Liabilities | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total minimum lease payments | 3,026 | 3,769 | | Future finance charges | (183) | (235) | | **Total lease liabilities** | **2,843** | **3,534** | | Amounts payable: within one year | 1,270 | 1,338 | | Amounts payable: after one year | 1,573 | 2,196 | [18 Commitments](index=37&type=section&id=18%20Commitments) As of June 30, 2025, the Group's significant capital expenditures contracted but not recognized as liabilities amounted to RMB 7,754 thousand, primarily for property, plant and equipment Capital Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 7,754 | 9,476 | [19 Contingent Liabilities](index=37&type=section&id=19%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had **no significant contingent liabilities** as of June 30, 2025[68](index=68&type=chunk) [20 Related Party Transactions](index=37&type=section&id=20%20Related%20Party%20Transactions) The Group's related party transactions primarily include personal guarantees provided by two directors for bank borrowings and key management personnel compensation, which slightly increased year-on-year - Two directors provided personal guarantees for the Group's bank borrowings, details of which are set out in Note 17[70](index=70&type=chunk) Key Management Personnel Compensation | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Key management personnel compensation | 4,584 | 4,520 | [Management Discussion and Analysis](index=38&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's operational and financial performance, strategic direction, and future outlook [Change of Company Name](index=38&type=section&id=Change%20of%20Company%20Name) The Company has changed its English name to "Green Fresh Biotechnology Company Limited" and its Chinese name to "綠新生物科技有限公司" to better reflect its business focus on researching, developing, producing, and selling seaweed products using advanced biotechnology - The change of company name aims to effectively communicate the Company's focus on leveraging advanced biotechnology for the research, development, production, and sale of seaweed products[72](index=72&type=chunk) - Seaweed is increasingly recognized as an environmentally friendly resource due to its carbon-negative footprint and diverse applications as a fossil fuel alternative[72](index=72&type=chunk) [Long-term Business Strategy](index=38&type=section&id=Long-term%20Business%20Strategy) The Group is a global leading R&D manufacturer of all-natural functional materials, specializing in agar, carrageenan, konjac gum, and compound products for food, cosmetics, home, and laboratory media, ranking first in China and globally as the largest producer of agar and refined/semi-refined carrageenan products - The Group's main products include agar and carrageenan products made from naturally cultivated seaweed; konjac gum products made from naturally grown konjac; and compound products and related professional solutions that combine different hydrocolloids to provide extended functions[73](index=73&type=chunk) - Products are widely used in processed meats, confectionery, dairy products, sauces, baked goods, pet food, flavored tea beverages, 100% biodegradable facial masks, air fresheners, plastic substitute packaging and mulching films, as well as laboratory culture media and gel electrophoresis media for gene sequencing[73](index=73&type=chunk)[74](index=74&type=chunk) - The Group ranks **first** among Chinese producers of agar products and refined and semi-refined carrageenan products, and is recognized as the **world's largest producer** of these products[74](index=74&type=chunk) [Business Review](index=39&type=section&id=Business%20Review) In H1 2025, the Group faced weak economic conditions in its main markets (China and Europe), with China experiencing sluggish growth and intense price competition due to "involution" and tariff wars, leading to a 10.7% year-on-year decrease in total revenue from reduced sales volume and average selling prices of carrageenan and agar, though partially offset by lower seaweed material procurement prices and reduced loan interest rates - Weak economic conditions in China and Europe, coupled with sluggish growth and 'involution' in the Chinese market, led to intense price competition, further exacerbated by tariff wars[75](index=75&type=chunk)[77](index=77&type=chunk) - In H1 2025, sales volume and average selling price of refined carrageenan decreased by approximately **4.2%** and **5.5%** respectively compared to H1 2024; agar sales volume and average selling price decreased by approximately **12.8%** and **1.8%** respectively[75](index=75&type=chunk) H1 2025 Revenue and Market Performance | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 410.0 | 459.0 | -10.7% | | Total revenue contribution from carrageenan and agar products | 75.8% | 78.8% | -3.0 percentage points | | China market revenue | 189.3 | 245.8 | -23.0% | | Overseas market revenue | 220.7 | 228.3 | -3.3% | | Europe market sales | 124.4 | 111.6 | +11.5% | | Asia market sales | 61.8 | 76.9 | -19.7% | - Decreased procurement prices for seaweed materials and lower interest rates on RMB, USD, and HKD-denominated loans led to reduced finance costs in H1 2025[75](index=75&type=chunk) [Continuous Investment in Product Technology](index=41&type=section&id=Continuous%20Investment%20in%20Product%20Technology) The Group continuously invests in product R&D to optimize its product portfolio and enhance profitability, focusing on high-margin compound products, instant agar, deep-processed carrageenan, konjac health foods, and new applications like gel air fresheners, cosmetic facial masks, and 100% biodegradable plastic substitutes - The Group optimizes its product portfolio through continuous investment in product R&D to enhance profitability[80](index=80&type=chunk) - Key development areas include: high-margin compound products, instant agar for dairy products, deep-processed carrageenan for baked goods, konjac health foods, gel air fresheners, cosmetic facial masks, and 100% biodegradable plastic substitute envelope window films, packaging films, and mulching films[80](index=80&type=chunk) [Business Outlook](index=41&type=section&id=Business%20Outlook) Despite a sluggish economic environment in the first half, global demand for hydrocolloid products is expected to rebound with the anticipated end of the European conflict; China's sales performance is projected to remain stable, with an upward trend in compound products; the Group will leverage its industry-leading advantages and plans to invest in capacity expansion for its Indonesian subsidiary, Hongxin, to enhance cost competitiveness - Global demand for hydrocolloid products is expected to rebound with the anticipated end of the European conflict[81](index=81&type=chunk) - Directors anticipate China's sales performance to remain stable, with the upward trend in compound products continuing[81](index=81&type=chunk)[82](index=82&type=chunk) - The Group plans to invest in capacity expansion for its Indonesian subsidiary, PT Hongxin Algae International (Hongxin), to leverage its lower operating costs and proximity to seaweed resources, thereby improving product quality and cost competitiveness[82](index=82&type=chunk) [Interim Dividend](index=42&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the first half of 2025 - The Board does not recommend the payment of an interim dividend for the first half of 2025[83](index=83&type=chunk) [Financial Review](index=42&type=section&id=Financial%20Review) This section provides a detailed review of the H1 2025 financial performance, covering revenue, cost of sales, gross profit, various expenses, net finance costs, and income tax expense, ultimately leading to the loss attributable to owners of the Company [Revenue](index=42&type=section&id=Revenue) H1 2025 revenue was RMB 410.0 million, a 10.7% year-on-year decrease, mainly due to reduced sales volume and prices of carrageenan and agar, as well as the impact of "involution" and tariff wars in the Chinese market; revenue from konjac and other products increased Product Revenue Changes | Product | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Carrageenan | - | - | -30.0 | -13.9% | | Agar | - | - | -20.8 | -14.3% | | Compound products | - | - | -5.7 | -9.3% | | Konjac products | - | - | +4.2 | +13.2% | | Other products | - | - | +3.2 | +67.2% | - Total sales revenue from carrageenan and agar products accounted for **75.8%** of the Group's revenue, a decrease of **3.0 percentage points** compared to H1 2024[85](index=85&type=chunk) [Cost of Sales](index=43&type=section&id=Cost%20of%20Sales) H1 2025 cost of sales was RMB 349.9 million, a slight year-on-year decrease of 2.9%, primarily due to the combined effect of reduced carrageenan and agar sales volume and lower seaweed material procurement costs, partially offset by the base effect of inventory provision reversals in the prior year Cost of Sales Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of sales | 349.9 | 360.2 | -10.3 | -2.9% | - The decrease in cost of sales was primarily due to the combined effect of a total decrease of approximately **9.0%** in carrageenan and agar sales volume and a continuous decline in seaweed material procurement costs, leading to lower average inventory costs[86](index=86&type=chunk) [Gross Profit and Gross Margin](index=43&type=section&id=Gross%20Profit%20and%20Gross%20Margin) H1 2025 gross profit was RMB 60.1 million, a significant year-on-year decrease of 39.2%; the overall gross margin was 14.7%, down 6.8 percentage points, mainly due to reduced carrageenan and agar selling prices, impacted by weak economic conditions and intensified "involution" competition Gross Profit and Gross Margin Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross profit | 60.1 | 98.8 | -38.7 | -39.2% | | Gross margin | 14.7% | 21.5% | - | -6.8 percentage points | - Gross margins for carrageenan and agar products decreased by **14.7 percentage points** and **1.6 percentage points** respectively, while gross margins for konjac and compound products increased by **1.8 percentage points** and **0.5 percentage points** respectively[87](index=87&type=chunk)[88](index=88&type=chunk) [Selling and Distribution Expenses](index=44&type=section&id=Selling%20and%20Distribution%20Expenses) H1 2025 selling and distribution expenses were RMB 12.1 million, a 28.7% year-on-year increase, mainly due to an increased number of overseas sales representatives, more trade fair participations, and corresponding increases in travel and accommodation expenses Selling and Distribution Expenses Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 12.1 | 9.4 | +2.7 | +28.7% | [Administrative Expenses](index=44&type=section&id=Administrative%20Expenses) H1 2025 administrative expenses were RMB 52.9 million, a 7.7% year-on-year increase, mainly due to higher staff wages and social security contributions, and increased R&D expenses related to mainstream and new product production Administrative Expenses Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Administrative expenses | 52.9 | 49.1 | +3.8 | +7.7% | [Net Finance Costs](index=44&type=section&id=Net%20Finance%20Costs) H1 2025 finance costs decreased by RMB 3.8 million or 22.8%, primarily due to lower market interest rates on RMB, USD, and HKD-denominated loans, while finance income decreased Net Finance Costs Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance income | 0.13 | 0.287 | -0.157 | -54.7% | | Finance costs | 12.9 | 16.7 | -3.8 | -22.8% | - The decrease in finance costs was due to lower market interest rates on RMB, USD, and HKD-denominated loans in H1 2025[92](index=92&type=chunk) [Income Tax Expense](index=45&type=section&id=Income%20Tax%20Expense) In H1 2025, the Group recorded an income tax credit of RMB 4.1 million, a decrease of RMB 11.5 million compared to an expense of RMB 7.4 million in the prior year, mainly due to deferred income tax credits Income Tax Expense Changes | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Current income tax | 654 | 3,432 | -2,778 | | Deferred income tax/(credit) | (4,712) | 3,935 | -8,647 | | **Income tax (credit)/expense** | **(4,058)** | **7,367** | **-11,425** | [Loss/Profit Attributable to Owners of the Company](index=45&type=section&id=Loss%2FProfit%20Attributable%20to%20Owners%20of%20the%20Company) In H1 2025, the loss attributable to owners of the Company was RMB 12.1 million, compared to a profit of RMB 23.1 million in the prior year, a decrease of RMB 35.2 million, primarily due to a reduced net profit margin for the Group (Loss)/Profit Attributable to Owners of the Company | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | (Loss)/Profit attributable to owners of the Company | (12.1) | 23.1 | -35.2 | [Liquidity and Financial Ratios](index=46&type=section&id=Liquidity%20and%20Financial%20Ratios) As of June 30, 2025, the Group's cash and bank balances were RMB 106.4 million, with a current ratio of 1.73 and a gearing ratio of 36.1%; net current assets decreased by 1.9%, primarily due to increased inventories, decreased cash, and increased trade payables Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current ratio | 1.73 | 1.74 | | Gearing ratio | 36.1% | 34.3% | Changes in Cash and Net Current Assets | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and bank balances | 106.4 | 141.4 | -35.0 | -24.8% | | Net current assets | 434.5 | 442.9 | -8.4 | -1.9% | [Borrowings](index=46&type=section&id=Borrowings) As of June 30, 2025, the Group's total bank borrowings were RMB 530.7 million, with RMB 436.5 million repayable within one year; the weighted average interest rate for bank borrowings was 3.93%, a decrease from 2024 Bank Borrowings | Indicator | June 30, 2025 (RMB million) | | :--- | :--- | | Total bank borrowings | 530.7 | | Repayable within one year | 436.5 | | Repayable after one year | 94.2 | - As of June 30, 2025, the weighted average interest rate (per annum) for bank borrowings was **3.93%** (2024: 5.34%)[99](index=99&type=chunk) [Interest Rate Risk](index=47&type=section&id=Interest%20Rate%20Risk) The Group's interest rate risk primarily arises from interest-bearing short-term deposits and bank borrowings, facing cash flow interest rate risk for variable-rate borrowings and fair value interest rate risk for fixed-rate borrowings; directors expect minimal impact from interest rate changes on interest-bearing assets - The Group faces **cash flow interest rate risk** (variable-rate borrowings) and **fair value interest rate risk** (fixed-rate borrowings)[100](index=100&type=chunk) [Pledged Assets](index=47&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group's bank borrowings were secured by land use rights and buildings with a carrying value of RMB 84.3 million, with secured bank borrowings amounting to RMB 148.3 million Pledged Assets and Secured Borrowings | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Carrying value of pledged land use rights and buildings | 84.3 | 87.2 | | Amount of secured bank borrowings | 148.3 | 169.7 | [Future Plans for Material Investments or Capital Assets](index=47&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Group plans to make further investments in the capacity expansion of its Indonesian subsidiary, Hongxin, in the foreseeable future to enhance cost competitiveness, with funding sourced from internal resources - The Group expects to make further investments in the capacity expansion of Hongxin in the foreseeable future, with funding to be sourced from the Group's internal resources[102](index=102&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=48&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) In H1 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - In H1 2025, the Group had **no material acquisitions or disposals** of subsidiaries, associates, or joint ventures[104](index=104&type=chunk) [Treasury Policy and Exposure to Exchange Rate Fluctuations](index=48&type=section&id=Treasury%20Policy%20and%20Exposure%20to%20Exchange%20Rate%20Fluctuations) The Group adopts a prudent approach to cash management and fund investment, with revenue and expenditure primarily denominated in RMB and USD, achieving a natural hedge against foreign exchange risk; no hedging activities were undertaken during the period - The Group's revenue and expenditure items are primarily denominated in RMB and USD, largely achieving a **natural hedge** against foreign exchange risk[105](index=105&type=chunk) - In H1 2025, the Group did **not use any financial instruments for hedging purposes**[105](index=105&type=chunk) [Employees and Remuneration Policies](index=48&type=section&id=Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the Group had 1,045 full-time employees, with total staff costs of RMB 61.0 million; the company offers competitive remuneration, training, and discretionary bonuses and equity awards based on performance Employees and Remuneration | Indicator | June 30, 2025 | | :--- | :--- | | Number of full-time employees | 1,045 | | Total staff costs (H1 2025) | RMB 61.0 million | - The Group provides competitive remuneration packages aligned with market rates and considers discretionary bonuses and equity awards based on overall Group performance and individual employee performance[106](index=106&type=chunk) [Share Option Scheme and Share Award Scheme](index=49&type=section&id=Share%20Option%20Scheme%20and%20Share%20Award%20Scheme) The pre-IPO share option scheme was fully vested and exercised by May 21, 2024, with no outstanding share options in H1 2025; no grants, exercises, lapses, or cancellations occurred under the post-IPO share option scheme during the period; under the share award scheme, the trustee purchased 1,596,000 shares and vested 1,620,000 award shares - All share options under the pre-IPO share option scheme were fully vested and exercised by May 21, 2024, with **no outstanding pre-IPO share options** as of June 30, 2025[107](index=107&type=chunk) - In H1 2025, the trustee of the share award scheme purchased **1,596,000 shares** in the market for a total consideration of **HKD 1,120,700**, and a total of **1,620,000 award shares** were vested[108](index=108&type=chunk) [Capital Expenditure](index=49&type=section&id=Capital%20Expenditure) H1 2025 capital expenditure was RMB 18.6 million, primarily for plant, equipment, and land use rights Capital Expenditure | Indicator | H1 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Capital expenditure | 18.6 | 48.0 | [Commitments](index=50&type=section&id=Commitments) As of June 30, 2025, the Group's contracted capital commitments amounted to RMB 7.8 million Contracted Capital Commitments | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Contracted capital commitments | 7.8 | 9.5 | [Lease Liabilities](index=50&type=section&id=Lease%20Liabilities) As of June 30, 2025, total lease liabilities were RMB 2,843 thousand, related to the Group's buildings Lease Liabilities | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total lease liabilities | 2,843 | 3,534 | [Contingent Liabilities](index=50&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[113](index=113&type=chunk) [Capital Structure](index=50&type=section&id=Capital%20Structure) There was no change in the Company's capital structure during H1 2025 - There was **no change** in the Company's capital structure during H1 2025[114](index=114&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=51&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) In H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - In H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[115](index=115&type=chunk) [Events After Reporting Period](index=51&type=section&id=Events%20After%20Reporting%20Period) After the reporting date, the company name change became effective on July 17, 2025, with relevant announcements published; no other significant events occurred - The company name change became effective on July 17, 2025, and an announcement regarding the adoption of the new English name and dual foreign name, along with the new stock short name for trading on the Stock Exchange, has been published[116](index=116&type=chunk) [Corporate Governance](index=51&type=section&id=Corporate%20Governance) The Company is committed to maintaining high standards of corporate governance and has complied with the applicable code provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer (Mr. Chen Jincang), which the Board believes benefits management and is balanced by an experienced executive team and independent non-executive directors - The Company has complied with the applicable code provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer (Mr. Chen Jincang)[118](index=118&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer benefits the Group's management and that power and authority are balanced by a long-serving, excellent executive team and a Board comprising five executive directors and three independent non-executive directors[118](index=118&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=52&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules and confirms that all directors complied with the code in H1 2025 - The Company confirms that its directors complied with the Model Code set out in Appendix C3 of the Listing Rules in H1 2025[119](index=119&type=chunk) [Audit Committee and Review of Interim Results](index=53&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing financial statements, risk management, and internal controls; the Company's unaudited interim results and condensed consolidated interim financial statements for H1 2025 have been reviewed by the Audit Committee and by PricewaterhouseCoopers - The Audit Committee, comprising three independent non-executive directors with Mr. He Guiqing as Chairman, is primarily responsible for making recommendations on the appointment and dismissal of external auditors, reviewing financial statements, and overseeing risk management and internal control procedures[120](index=120&type=chunk) - The Company's unaudited interim results and condensed consolidated interim financial statements for H1 2025 have been reviewed by the Audit Committee and by PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[120](index=120&type=chunk)

[Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group announced unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, showing growth in operating profit, profit before tax, and profit for the period, alongside increased basic and diluted earnings per share, despite a slight revenue decrease Financial Highlights | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 131,704 | 132,051 | | Operating Profit | 53,602 | 49,554 | | Profit Before Tax | 39,702 | 33,617 | | Profit for the Period | 30,751 | 25,902 | | Basic and Diluted EPS (RMB cents) | 0.80 | 0.68 | [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group achieved significant growth in operating profit, profit before tax, and profit for the period, driven by effective cost control and increased fair value gains on financial assets, with basic and diluted EPS rising from RMB 0.68 cents to RMB 0.80 cents Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 131,704 | 132,051 | | Total Operating Expenses | (89,173) | (91,718) | | Other Income | 11,071 | 9,221 | | Operating Profit | 53,602 | 49,554 | | Finance Costs | (13,900) | (15,937) | | Profit Before Tax | 39,702 | 33,617 | | Income Tax | (8,951) | (7,715) | | Profit for the Period | 30,751 | 25,902 | | EPS (RMB cents) | 0.80 | 0.68 | - Total comprehensive income for the period increased from **RMB 26,247 thousand** in 2024 to **RMB 31,437 thousand** in 2025, primarily due to increased exchange differences[6](index=6&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total non-current assets and total current liabilities increased, leading to a decrease in net current assets, while total assets less current liabilities and total equity grew, indicating an expanded asset base but short-term liquidity pressure Unaudited Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 1,108,564 | 1,044,593 | | Total Current Assets | 337,067 | 329,956 | | Total Current Liabilities | 263,779 | 202,942 | | Net Current Assets | 73,288 | 127,014 | | Total Assets Less Current Liabilities | 1,181,852 | 1,171,607 | | Total Equity | 838,432 | 806,995 | [Notes](index=5&type=section&id=%E9%99%84%E8%A8%BB) This section details the basis of preparation, changes in accounting policies, key judgments and estimates for interim financial information, and provides disaggregated disclosures on revenue, expenses, assets, liabilities, and equity, offering deeper financial and operational context [1 Company Information](index=5&type=section&id=1%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Canggang Railway Co Ltd was incorporated in the Cayman Islands on October 19, 2018, listed on the HKEX main board on October 23, 2020, primarily operating freight railways and marshalling yards in China, providing freight and related auxiliary services - The Company was incorporated in the Cayman Islands on **October 19, 2018**, and listed on the HKEX main board on **October 23, 2020**[8](index=8&type=chunk) - Its principal business is operating freight railways and marshalling yards in China, providing railway freight and related auxiliary services[8](index=8&type=chunk) [2 Basis of Preparation](index=5&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The unaudited condensed consolidated interim financial information is prepared in accordance with HKEX Listing Rules and IAS 34 'Interim Financial Reporting', adopting the same accounting policies as the 2024 annual financial statements, except for new amendments, and has been reviewed by the Audit Committee but not by external auditors - Financial information is prepared in accordance with HKEX Listing Rules and IAS 34 'Interim Financial Reporting'[9](index=9&type=chunk) - Except for changes in accounting policies, the same accounting policies as the 2024 annual financial statements are adopted[9](index=9&type=chunk) - Not reviewed by external auditors, but reviewed by the Audit Committee[9](index=9&type=chunk) [3 Application of Judgments and Estimates](index=6&type=section&id=3%20%E5%88%A4%E6%96%B7%E5%8F%8A%E4%BC%B0%E8%A8%88%E7%9A%84%E6%87%89%E7%94%A8) Management made judgments and estimates affecting accounting policy application and reported amounts, including climate-related risks and opportunities, with key estimation uncertainties consistent with prior year financial statements, detailing fair value measurement and trade receivables expected credit loss judgments - Management made judgments and estimates in preparing financial statements, including those related to climate-related risks and opportunities[10](index=10&type=chunk) - Fair value measurements use a three-level hierarchy, supervised by the investment team, with significant matters reported to the Audit Committee[11](index=11&type=chunk)[12](index=12&type=chunk)[14](index=14&type=chunk) - Provisions for expected credit losses on trade receivables are based on historical records, market conditions, and forward-looking estimates[13](index=13&type=chunk) [4 Changes in Accounting Policies](index=7&type=section&id=4%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E7%9A%84%E8%AE%8A%E5%8B%95) This interim financial information first adopted amendments to IAS 21 'Lack of Exchangeability', which had no material impact on the Group's financial position, performance, or disclosures for the current and prior periods - First adoption of amendments to IAS 21 'Lack of Exchangeability'[15](index=15&type=chunk) - The amendment had no material impact on the Group's financial position and performance[15](index=15&type=chunk) [5 Revenue](index=7&type=section&id=5%20%E6%94%B6%E7%9B%8A) The Group's revenue primarily from railway freight and auxiliary services is recognized over time, totaling RMB 131,704 thousand for the six months ended June 30, 2025, a slight decrease from the prior year, with railway freight remaining the main source and auxiliary services showing slight growth, while major customer contributions remained stable Revenue Split by Major Service Line | Service Line | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Railway Freight | 112,135 | 112,722 | | Auxiliary Services Subtotal | 19,569 | 19,329 | | Total | 131,704 | 132,051 | Major Customer Revenue Contribution | Customer | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Customer A | 18,921 | 24,215 | | Customer C | 20,994 | 19,304 | | Customer D | 24,259 | 21,191 | - As of June 30, 2025, revenue from customer contracts expected to be recognized in the future was **zero**, compared to **RMB 6,965 thousand** on December 31, 2024[22](index=22&type=chunk) Segment Results | Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Railway Freight | 46,451 | 46,056 | | Auxiliary Business | 796 | (2,238) | | Total Segment Results | 47,247 | 43,818 | - The Group's revenue and operating assets are primarily located in China, thus no segment analysis by customer and asset location is provided[27](index=27&type=chunk) - The railway freight segment has no significant seasonal impact, with full-year transport demand expected to remain relatively stable[28](index=28&type=chunk) [6 Other Income](index=10&type=section&id=6%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the Group's total other income increased to RMB 11,071 thousand from RMB 9,221 thousand in the prior year, primarily due to a significant increase in fair value gains on financial assets at fair value through profit or loss Other Income Details | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants | 259 | 282 | | Interest Income | 524 | 810 | | Fair value gains on financial assets at FVTPL | 8,549 | 5,538 | | Net Trading Gains | 1,279 | 1,957 | | Others | 460 | 596 | | Total | 11,071 | 9,221 | [7 Profit Before Tax](index=11&type=section&id=7%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax increased to RMB 39,702 thousand from RMB 33,617 thousand in the prior year, primarily driven by reduced finance costs and lower staff costs, despite a slight increase in depreciation expenses Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total interest expense on bank and other borrowings | 13,900 | 15,937 | Staff Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 22,645 | 25,244 | | Contributions to defined contribution retirement schemes | 3,349 | 2,948 | | Total | 25,994 | 28,192 | Other Items | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation | 17,918 | 17,493 | | Short-term lease expenses with remaining lease term not exceeding 12 months | 50 | 180 | | Auditor's remuneration | 435 | 500 | | Cost of inventories | 11,623 | 11,850 | [8 Income Tax in the Consolidated Statement of Profit or Loss](index=12&type=section&id=8%20%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8%E5%85%A7%E7%9A%84%E6%89%80%E5%BE%97%E7%A8%85) For the six months ended June 30, 2025, income tax expense increased to RMB 8,951 thousand from RMB 7,715 thousand in the prior year, mainly due to higher provisions during the period Income Tax Details | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax (provision for the period) | 8,946 | 7,891 | | Deferred tax (temporary differences arising and reversed) | 5 | (176) | | Total | 8,951 | 7,715 | [9 Dividends](index=12&type=section&id=9%20%E8%82%A1%E6%81%AF) The Board does not recommend paying an interim dividend for the reporting period, consistent with the prior year - The Board does not recommend paying an interim dividend for the reporting period (six months ended June 30, 2024: nil)[32](index=32&type=chunk) [10 Earnings Per Share](index=13&type=section&id=10%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share increased to RMB 0.80 cents from RMB 0.68 cents in the prior year, primarily due to higher profit attributable to equity holders, with no potential dilutive shares during the period Basic Earnings Per Share Calculation | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company (RMB thousands) | 30,878 | 26,351 | | Weighted average number of ordinary shares in issue | 3,847,792,000 | 3,847,792,000 | | Basic EPS (RMB cents) | 0.80 | 0.68 | - For the six months ended June 30, 2025 and 2024, there were no outstanding potential dilutive shares[33](index=33&type=chunk) [11 Property, Plant and Equipment](index=13&type=section&id=11%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) The Group's property, plant and equipment are all located in China; for the six months ended June 30, 2025, RMB 24,343 thousand was invested in upgrading and renovating Canggang Line infrastructure to enhance railway operational safety and overall carrying capacity - The Group's property, plant and equipment are all located in China[34](index=34&type=chunk) - Invested **RMB 24,343 thousand** to upgrade and renovate Canggang Line infrastructure to enhance safety and carrying capacity[34](index=34&type=chunk) [12 Inventories](index=14&type=section&id=12%20%E5%AD%98%E8%B2%A8) As of June 30, 2025, the Group's total inventories significantly increased to RMB 90,218 thousand from RMB 46,664 thousand on December 31, 2024, primarily due to a substantial rise in sand and gravel inventories, while the amount of inventories recognized as expenses remained stable Inventories in the Consolidated Statement of Financial Position | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Fuel | 5,105 | 3,384 | | Coal | 13,784 | 17,241 | | Sand and gravel | 60,983 | 19,310 | | Materials and consumables | 10,346 | 6,729 | | Total | 90,218 | 46,664 | Amount of Inventories Recognized as Expenses | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Carrying amount of inventories used | 11,623 | 11,850 | [13 Trade and Bills Receivables](index=15&type=section&id=13%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills receivables slightly decreased to RMB 79,439 thousand from RMB 81,274 thousand on December 31, 2024, with changes in the aging structure showing an increase in receivables due within one month and variations in those due between 6-12 months and over 12 months, and RMB 6,935 thousand in bills receivable endorsed during the period Trade and Bills Receivables | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 69,364 | 58,261 | | Bills receivable | 10,075 | 23,013 | | Total | 79,439 | 81,274 | Aging Analysis of Trade Receivables | Aging | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 42,062 | 32,304 | | 1 to 6 months | 17,612 | 14,755 | | 6 to 12 months | 3,046 | 8,597 | | Over 12 months | 6,644 | 2,605 | - All trade and bills receivables are expected to be recovered within one year[38](index=38&type=chunk) - As of June 30, 2025, the Group had endorsed bills receivable with a carrying value of **RMB 6,935 thousand** to suppliers[38](index=38&type=chunk) [14 Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=14%20%E9%80%8F%E9%81%8E%E6%90%8D%E7%9B%8A%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, total financial assets at fair value through profit or loss increased to RMB 46,967 thousand from RMB 38,418 thousand on December 31, 2024, primarily due to fair value gains on Hong Kong-listed equity securities Financial Assets at Fair Value Through Profit or Loss | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Hong Kong listed equity securities | 43,003 | 34,454 | | Unlisted equity securities | 3,964 | 3,964 | | Total | 46,967 | 38,418 | - Listed equity securities are ordinary shares of Hong Kong-listed entities, held for long-term strategic purposes[41](index=41&type=chunk) - Unlisted equity securities represent equity interests in private entities in China[41](index=41&type=chunk) [15 Trade Payables](index=16&type=section&id=15%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables increased to RMB 28,386 thousand from RMB 23,444 thousand on December 31, 2024, with all trade payables expected to be settled within one year or on demand Aging Analysis of Trade Payables | Aging | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 14,877 | 13,320 | | 1 to 3 months | 689 | 3,923 | | 3 to 6 months | 4,874 | 2,638 | | 6 to 12 months | 4,405 | 1,663 | | Over 12 months | 3,541 | 1,900 | | Total | 28,386 | 23,444 | [16 Bank and Other Borrowings](index=17&type=section&id=16%20%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B2%B8%E6%AC%BE) As of June 30, 2025, the Group's total bank and other borrowings increased to RMB 561,070 thousand from RMB 521,767 thousand on December 31, 2024, with RMB 217,650 thousand as the current portion repayable within one year or on demand, and most borrowings being fixed-rate and partially secured by assets Composition of Bank and Other Borrowings | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank borrowings (secured) | 392,510 | 378,504 | | Bank borrowings (unsecured) | 47,000 | 48,059 | | Other borrowings (secured) | 117,240 | 93,652 | | Other borrowings (unsecured) | 4,320 | 1,552 | | Total | 561,070 | 521,767 | Repayment Schedule of Bank and Other Borrowings | Repayment Period | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year or on demand | 217,650 | 157,155 | | After 1 year but within 2 years | 137,020 | 187,744 | | After 2 years but within 5 years | 206,400 | 176,868 | | Total | 561,070 | 521,767 | - Secured bank loans are collateralized by property, plant and equipment (**RMB 6,816 thousand**) and right-of-use assets (**RMB 102,202 thousand**)[46](index=46&type=chunk) - Secured other borrowings are collateralized by property, plant and equipment (**RMB 174,555 thousand**), with some guaranteed by Cangzhou Logistics or pledged with its equity interests[45](index=45&type=chunk) Borrowing Interest Rate Mix | Borrowing Type | Effective Interest Rate (June 30, 2025) | Amount (RMB thousands, June 30, 2025) | Effective Interest Rate (Dec 31, 2024) | Amount (RMB thousands, Dec 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | Fixed-rate borrowings (bank loans) | 3.65%-5.50% | 400,510 | 3.65%-5.50% | 383,005 | | Fixed-rate borrowings (other loans) | 4.00%-6.56% | 121,560 | 4.00%-6.56% | 95,204 | | Floating-rate borrowings (bank loans) | 4.8% | 39,000 | 4.8% | 43,558 | | Fixed-rate borrowings as % of total borrowings | | 93% | | 92% | [17 Commitments](index=19&type=section&id=17%20%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's contracted capital commitments for property, plant and equipment increased to RMB 70,848 thousand from RMB 61,163 thousand on December 31, 2024 Capital Commitments | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Commitments for property, plant and equipment (contracted) | 70,848 | 61,163 | [Management Discussion and Analysis](index=20&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) The Management Discussion and Analysis section outlines the Group's H1 2025 business performance, financial position, future development strategies, and risk management, demonstrating robust profitability and financial structure through operational optimization and strategic investments despite market headwinds [Business Review](index=20&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, the Group solidified its leading railway operator position in Hebei Province, with the Chinese railway freight market, especially coal transport, showing recovery; despite a slight decrease in cargo volume, auxiliary service revenue grew, and operational improvements maintained service reliability - The Chinese railway freight market, particularly coal transport, showed signs of recovery in H1 2025, driven by industrial demand and operational improvements[49](index=49&type=chunk) - The Group's cargo volume decreased by **3.6%** from **6.9 million tonnes** to **6.7 million tonnes**, but operational improvement measures have been actively implemented[50](index=50&type=chunk) - Auxiliary service revenue increased by **1.2%** or **RMB 0.2 million** year-on-year, primarily due to increased coal transport driving loading and unloading service growth, offset by a decline in construction, maintenance, and repair businesses[50](index=50&type=chunk) [Future Developments](index=21&type=section&id=%E6%9C%AA%E4%BE%86%E7%99%BC%E5%B1%95) The Group plans to expand its business by constructing more branch lines to extend into the Bohai New Area Integrated Industrial Park, with approval obtained in January 2024 and construction commencing late 2024, while also upgrading and renovating Canggang Line infrastructure to enhance operational safety and carrying capacity - Plans to construct more branch lines to expand business, including extending to the Bohai New Area Integrated Industrial Park, with approval obtained in **January 2024** and construction commencing **late 2024**[51](index=51&type=chunk) - Currently upgrading and renovating Canggang Line infrastructure to enhance railway operational safety and overall carrying capacity[51](index=51&type=chunk) [Financial Review](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group achieved robust financial performance in H1 2025, with significant profit growth and improved net profit margin despite a slight revenue decrease, driven by cost-efficiency policies and increased fair value gains on financial assets, demonstrating strong profitability amidst market changes Revenue by Service Line | Service Line | 2025 (RMB thousands) | Share | 2024 (RMB thousands) | Share | | :--- | :--- | :--- | :--- | :--- | | Railway Freight | 112,135 | 85.1% | 112,722 | 85.4% | | Auxiliary Services Subtotal | 19,569 | 14.9% | 19,329 | 14.6% | | Total | 131,704 | 100.0% | 132,051 | 100.0% | - Operating expenses decreased by **2.8%** or **RMB 2.5 million** to **RMB 88.2 million**, mainly due to reduced staff costs and freight logistics from implementing cost-efficiency policies[53](index=53&type=chunk) - Prepayments and other receivables significantly increased by **72%** to **RMB 146.6 million**, primarily due to higher trade business deposits and construction prepayments[54](index=54&type=chunk) - Railway freight segment profit margin remained stable at **41.4%**, while auxiliary business turned profitable, recording a profit of **RMB 0.8 million**[55](index=55&type=chunk) - Other income increased by **20.1%** to **RMB 11.1 million**, primarily driven by fair value gains on financial assets at fair value through profit or loss[56](index=56&type=chunk) - Finance costs decreased by **12.8%** to **RMB 13.9 million**, mainly due to a reduction in average loan balances[57](index=57&type=chunk) - Income tax expense increased by **16.0%** to **RMB 9.0 million**, primarily due to higher profit contribution from railway freight, with the effective tax rate remaining stable[58](index=58&type=chunk) - Profit for the period increased by **18.7%** to **RMB 30.8 million**, with net profit margin rising from **19.6%** to **23.3%**, reflecting successful execution of strategic initiatives[59](index=59&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) As of June 30, 2025, the Group's net current assets decreased to RMB 73.3 million from RMB 127.0 million on December 31, 2024, primarily due to significant trade deposit payments for new trade business, leading to reduced cash and cash equivalents; the gearing ratio rose to 66.9%, yet the Group maintains a sound liquidity position and ample financial flexibility - Net current assets decreased from **RMB 127.0 million** to **RMB 73.3 million**[60](index=60&type=chunk) - Cash and cash equivalents decreased by **RMB 70.5 million** to **RMB 85.5 million**, primarily due to significant deposit payments for new trade business[60](index=60&type=chunk) - Interest-bearing borrowings increased to **RMB 561.1 million**, of which **RMB 343.4 million** were long-term borrowings[60](index=60&type=chunk) - The gearing ratio increased to approximately **66.9%** (December 31, 2024: approximately **64.7%**), mainly due to an increase in period-end balances of bank and other borrowings[61](index=61&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged property, plant and equipment with a carrying value of approximately RMB 6.8 million for bank loans and RMB 174.6 million for other loans, additionally pledging right-of-use assets with a carrying value of approximately RMB 102.2 million for bank loans - Pledged property, plant and equipment with a carrying value of approximately **RMB 6.8 million** for bank loans[62](index=62&type=chunk) - Pledged property, plant and equipment with a carrying value of approximately **RMB 174.6 million** for other borrowings[62](index=62&type=chunk) - Pledged right-of-use assets with a carrying value of approximately **RMB 102.2 million** for bank loans[62](index=62&type=chunk) [Contingent Liabilities](index=24&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, and December 31, 2024, the Group had no contingent liabilities - The Group had no contingent liabilities at the end of the reporting period[63](index=63&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group primarily operates in China, with most transactions denominated in RMB; significant foreign exchange fluctuations are not expected to have a material impact, except for a few HKD-settled transactions, and while no hedging policy is currently in place, foreign exchange risk is continuously monitored - The Group primarily operates in China, with most transactions denominated and settled in RMB[64](index=64&type=chunk) - Except for a few HKD-settled transactions, no significant adverse impact from exchange rate fluctuations is expected[64](index=64&type=chunk) - The Group currently has no foreign exchange hedging policy but will continue to monitor foreign exchange risk[64](index=64&type=chunk) [Capital Expenditure and Commitments](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E5%8F%8A%E6%89%BF%E6%93%94) During the reporting period, the Group incurred RMB 24.3 million in capital expenditure, primarily for upgrading and renovating Canggang Line infrastructure, funded by IPO proceeds, operating cash, and bank financing; as of June 30, 2025, outstanding capital commitments for property, plant and equipment amounted to approximately RMB 70.8 million - Incurred **RMB 24.3 million** in capital expenditure during the reporting period, primarily for upgrading and renovating Canggang Line infrastructure[65](index=65&type=chunk) - Capital expenditure was funded by IPO proceeds, cash generated from operations, and bank financing[65](index=65&type=chunk) - As of June 30, 2025, outstanding capital commitments for property, plant and equipment amounted to approximately **RMB 70.8 million**[66](index=66&type=chunk) [Significant Investments, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Future Plans for Material Investments in Capital Assets](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85%EF%BC%8C%E4%BB%A5%E5%8F%8A%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E6%8A%95%E8%B3%87%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) Except for disclosed matters, the Group held no significant investments, undertook no material acquisitions or disposals, and had no other future plans for material capital asset investments during the reporting period - The Group held no significant investments and undertook no material acquisitions or disposals during the reporting period[67](index=67&type=chunk) - As of June 30, 2025, the Group had no other plans for significant investments or acquisitions of capital assets[67](index=67&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities; as of June 30, 2025, the Company held no treasury shares, and the share award scheme trustee had not purchased shares under the scheme terms - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[68](index=68&type=chunk) - As of June 30, 2025, the Company held no treasury shares[68](index=68&type=chunk) - The trustee of the share award scheme did not purchase shares under the scheme terms[68](index=68&type=chunk) [Events After Reporting Period](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events occurred after the reporting period and up to the date of this announcement - No significant events occurred after the reporting period and up to the date of this announcement[69](index=69&type=chunk) [Employees and Remuneration Policies](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group employed 638 staff, offering attractive remuneration packages reviewed annually based on performance, and is committed to providing adequate training and a caring environment to retain and motivate employees - As of June 30, 2025, the Group employed **638** staff (December 31, 2024: **648** staff)[70](index=70&type=chunk) - The Group offers attractive remuneration packages, with annual reviews based on individual performance, and provides training to maintain professional qualifications[70](index=70&type=chunk) [Corporate Governance](index=26&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group is committed to maintaining high corporate governance standards to protect shareholder interests and enhance corporate value, continuously improving risk assessment, monitoring processes, internal control policies, and transparency, and complied with all applicable code provisions of Appendix C1 of the Listing Rules during the reporting period - The Group is committed to maintaining high corporate governance standards to ensure the proper management of interests for all shareholders and other stakeholders[71](index=71&type=chunk) - The Group continuously improves risk assessment and monitoring processes, internal control policies, and enhances transparency and quality of disclosures to shareholders[71](index=71&type=chunk) - The Group has articulated its corporate purpose, vision, operating philosophy, corporate spirit, and core values to guide employee behavior and business activities[72](index=72&type=chunk) [Corporate Governance Practices](index=27&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Group is committed to high corporate governance standards, complying with all applicable code provisions under Part 2 of Appendix C1 of the Listing Rules during the reporting period; the Board will continuously review and monitor corporate governance practices and has appointed Ms Lu Qinghua as an independent non-executive director to the Nomination Committee - During the reporting period, the Company complied with all applicable code provisions under Part 2 of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[73](index=73&type=chunk) - The Board appointed Ms Lu Qinghua, an independent non-executive director, as a member of the Company's Nomination Committee, effective **June 18, 2025**[73](index=73&type=chunk) [Standard Code for Securities Transactions](index=27&type=section&id=%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) The Company adopted the Standard Code set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with its required standards during the reporting period - The Company adopted the Standard Code set out in Appendix C3 of the Listing Rules[74](index=74&type=chunk) - All Directors confirmed compliance with the required standards of the Standard Code during the reporting period[74](index=74&type=chunk) [Audit Committee](index=27&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising two independent non-executive directors and one non-executive director, reviewed the unaudited condensed consolidated interim financial statements for the reporting period, deeming them compliant with applicable accounting standards and Listing Rules, with adequate disclosures - The Audit Committee comprises two independent non-executive directors (Ms Lu Qinghua, Mr Liu Changchun) and one non-executive director (Mr Xu Zhihua)[75](index=75&type=chunk) - The Audit Committee reviewed the unaudited condensed consolidated interim financial statements for the reporting period and deemed them compliant with applicable accounting standards and Listing Rules[75](index=75&type=chunk) [Interim Dividends](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend paying any dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend paying any dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[76](index=76&type=chunk) [Publication of Results Announcement and Interim Report](index=28&type=section&id=%E5%88%8A%E7%99%BC%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement is published on the Company's website and the HKEX website; the interim report for the six months ended June 30, 2025, will be dispatched to shareholders requesting printed copies and published on the aforementioned websites in due course - This interim results announcement is published on the Company's website **www.czcgtl.com** and the HKEX website **www.hkexnews.hk**[77](index=77&type=chunk) - The interim report will be dispatched to shareholders requesting printed copies and published on the aforementioned websites in due course[77](index=77&type=chunk) [Acknowledgements](index=28&type=section&id=%E8%87%B4%E8%AC%9D) The Board expresses gratitude for the support from the management team, employees, shareholders, investors, and business partners - The Board expresses gratitude for the support from the management team, employees, shareholders, investors, and business partners[78](index=78&type=chunk) [Definitions](index=28&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used in this announcement to ensure a clear understanding of the report's content - Provides definitions for key terms used in this announcement, such as 'Directors', 'HKEX', 'Canggang Line', etc[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)

I. [Interim Results Announcement Summary](index=1&type=section&id=I.%20Interim%20Results%20Announcement%20Summary) This section provides an overview of Far East Holdings International Limited's unaudited interim results for the six months ended June 30, 2025 1.1 [Performance Overview](index=1&type=section&id=1.1%20Performance%20Overview) Far East Holdings International Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, with comparative data for 2024 - This announcement presents the unaudited condensed consolidated interim results of Far East Holdings International Limited and its subsidiaries for the six months ended June 30, 2025[2](index=2&type=chunk) 1.2 [Going Concern Assumption](index=5&type=section&id=1.2%20Going%20Concern%20Assumption) The Group faces net current liabilities and plans measures like loan extensions, asset sales, and market strategy optimization to ensure going concern for at least 12 months - As of June 30, 2025, the Group had **net current liabilities of HKD 632.994 million**, primarily comprising bank borrowings of **HKD 351.76 million** repayable on demand and a non-controlling interests loan of **HKD 152.7 million** due on April 30, 2026[8](index=8&type=chunk) - The Board has prepared cash flow forecasts for the next 12 months and plans measures including negotiating loan extensions with non-controlling interests, disposing of investments held for trading, re-evaluating market strategies to reduce investment property vacancy rates, and considering the disposal of investment properties to enhance liquidity if needed[8](index=8&type=chunk)[11](index=11&type=chunk) - The Directors believe that, assuming the successful implementation of these measures, the Group will be able to fund its operations and meet its financial obligations for at least the next twelve months[11](index=11&type=chunk) II. [Condensed Consolidated Financial Statements](index=2&type=section&id=II.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including profit or loss, other comprehensive income, and financial position 2.1 [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported increased net revenue but a significant loss before tax due to fair value losses on investment properties Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 6,746 | 5,515 | Increase | | Operating costs of leases | (719) | (1,006) | Decrease | | Net rental income | 6,027 | 4,509 | Increase | | Other income | 15 | 183 | Decrease | | Net other losses | (487,540) | (180) | Significant Increase | | Administrative expenses | (1,901) | (1,762) | Increase | | Finance costs | (23,511) | (20,622) | Increase | | Loss before income tax | (506,910) | (17,872) | Significant Increase | | Income tax expense | (37) | – | Increase | | Loss and total comprehensive loss for the period | (506,910) | (17,909) | Significant Increase | | Loss attributable to owners of the Company | (272,868) | (15,302) | Significant Increase | | Loss attributable to non-controlling interests | (234,042) | (2,607) | Significant Increase | | Basic loss per share (HK cents) | (224.75) | (5.51) | Significant Increase | 2.2 [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total net assets increased, with higher bank balances and cash, despite persistent net current liabilities Key Data from Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Investment properties | 768,300 | 768,300 | Stable | | Property, plant and equipment | 981 | 928 | Increase | | **Current assets** | | | | | Investments held for trading | 840 | 1,020 | Decrease | | Rental receivables and other receivables | 2,096 | 1,016 | Increase | | Bank balances and cash | 8,285 | 628 | Significant Increase | | **Current liabilities** | | | | | Other payables | 54,903 | 46,107 | Increase | | Amounts due to non-controlling interests | 84,649 | 60,933 | Increase | | Bank borrowings | 351,760 | 390,024 | Decrease | | Non-controlling interests loan | 152,700 | – | Significant Increase | | **Non-current liabilities** | | | | | Other loans | 13,103 | 51,385 | Decrease | | Non-controlling interests loan | – | 152,700 | Decrease | | **Net assets** | 122,889 | 70,170 | Increase | | **Equity attributable to owners of the Company** | 57,692 | 2,366 | Significant Increase | | **Non-controlling interests** | 65,197 | 67,804 | Decrease | | **Total equity** | 122,889 | 70,170 | Increase | III. [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=III.%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the basis of preparation, accounting policies, segment information, and other financial statement items 3.1 [Basis of Preparation and Accounting Policies](index=5&type=section&id=3.1%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared under HKAS 34 and Appendix 16 of the Listing Rules, primarily on a historical cost basis - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[6](index=6&type=chunk) - The financial statements are prepared on the **historical cost basis**, except for investment properties and certain financial instruments which are measured at fair value[9](index=9&type=chunk) - The adoption of all new and revised Hong Kong Financial Reporting Standards during the period had no significant impact on the Group's unaudited condensed consolidated financial statements[9](index=9&type=chunk) 3.2 [Segment Information](index=6&type=section&id=3.2%20Segment%20Information) The Group operates in two reportable segments: property investment and securities investment, with segment results calculated after deducting direct expenses - The Group has two reportable segments: **property investment** and **securities investment**[10](index=10&type=chunk) - Segment results represent the loss of each segment after deducting operating costs of leases and administrative expenses directly attributable to each segment, excluding unallocated other operating income and corporate expenses[12](index=12&type=chunk) 3.2.1 [Segment Revenue and Results](index=7&type=section&id=3.2.1%20Segment%20Revenue%20and%20Results) For the six months ended June 30, 2025, property investment revenue decreased, while both segments recorded losses, with property investment loss significantly narrowed Segment Revenue and Results (For the six months ended June 30, 2025) | Segment | 2025 Revenue (HKD thousands) | 2025 Results (HKD thousands) | 2024 Revenue (HKD thousands) | 2024 Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Property investment | 5,515 | (4,809) | 6,746 | (491,568) | | Securities investment | – | (180) | – | (2,340) | | Other operating income | 183 | – | 15 | – | | Unallocated expenses | – | (13,066) | – | (13,017) | | Loss before income tax | – | (17,872) | – | (506,910) | 3.3 [Net Other Losses](index=8&type=section&id=3.3%20Net%20Other%20Losses) For the six months ended June 30, 2025, the Group recorded significant net other losses primarily from fair value losses on investment properties Net Other Losses (For the six months ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Fair value loss on investment properties | (485,200) | – | | Unrealised fair value loss on investments held for trading | (2,340) | (180) | | **Total** | **(487,540)** | **(180)** | 3.4 [Finance Costs](index=8&type=section&id=3.4%20Finance%20Costs) For the six months ended June 30, 2025, finance costs increased, mainly driven by interest on bank borrowings and non-controlling interests loans Finance Costs (For the six months ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 12,199 | 9,298 | | Interest on a non-controlling interests loan | 8,721 | 10,581 | | Interest on other loans | 2,591 | 743 | | **Total** | **23,511** | **20,622** | 3.5 [Income Tax Expense](index=8&type=section&id=3.5%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was HKD 37 thousand, calculated based on Hong Kong profits tax rates Income Tax Expense (For the six months ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong profits tax | 37 | – | | **Total** | **37** | **–** | - Hong Kong profits tax is calculated at a two-tiered rate, with the first **HKD 2,000,000** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[16](index=16&type=chunk) 3.6 [Loss for the Period](index=9&type=section&id=3.6%20Loss%20for%20the%20Period) The loss for the period primarily comprises expenses such as depreciation, right-of-use assets, and staff and professional fees Components of Loss for the Period (For the six months ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Directors' remuneration | 178 | – | | Depreciation | 197 | – | | Right-of-use assets | 951 | – | | Staff and professional fees | 983 | – | | Others | 28 | 34 | 3.7 [Dividends](index=9&type=section&id=3.7%20Dividends) No dividends were paid, declared, or proposed for the period, as the Board decided against any distribution - For the six months ended June 30, 2025, no dividends were paid, declared, or proposed, and the Board decided not to pay any dividends[18](index=18&type=chunk) 3.8 [Loss Per Share](index=9&type=section&id=3.8%20Loss%20Per%20Share) Basic loss per share attributable to owners of the Company significantly increased to 224.75 HK cents for the six months ended June 30, 2025 Loss Per Share (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands/share) | 2024 (HKD thousands/share) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (272,868) | (15,302) | | Weighted average number of ordinary shares | 121,411,621 | 277,956,958 | | Basic loss per share (HK cents) | (224.75) | (5.51) | - The weighted average number of ordinary shares used to calculate basic loss per share has been adjusted for the share consolidation on December 17, 2024, and the rights issue on February 5, 2025, with comparative data for 2024 restated[20](index=20&type=chunk) - Diluted loss per share is equal to basic loss per share as there were no potential dilutive ordinary shares during the period[20](index=20&type=chunk) 3.9 [Changes in Property, Plant and Equipment and Investment Properties](index=10&type=section&id=3.9%20Changes%20in%20Property,%20Plant%20and%20Equipment%20and%20Investment%20Properties) The Group acquired HKD 159 thousand in property, plant and equipment, with investment properties fair value determined by directors using market approach - During the period, the Group acquired property, plant and equipment of approximately **HKD 159,000**, but there were no additions or disposals of investment properties[21](index=21&type=chunk) - The fair value of investment properties is determined by the Directors using the market approach and is classified as Level 3 in the fair value hierarchy as of June 30, 2025, and December 31, 2024[21](index=21&type=chunk)[22](index=22&type=chunk) - The fair value loss on investment properties of **HKD 485,200,000** was recognised in profit or loss for the period, compared to nil in the prior period[22](index=22&type=chunk) 3.10 [Investments Held for Trading](index=10&type=section&id=3.10%20Investments%20Held%20for%20Trading) As of June 30, 2025, investments held for trading in Hong Kong listed equity securities decreased to HKD 840 thousand, valued by market quotes Investments Held for Trading (Listed Equity Securities) | Location | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 840 | 1,020 | - The fair value of investments held for trading is determined by reference to market quotations available on the Stock Exchange[23](index=23&type=chunk) 3.11 [Rental Receivables and Other Receivables](index=11&type=section&id=3.11%20Rental%20Receivables%20and%20Other%20Receivables) As of June 30, 2025, total rental receivables and other receivables increased to HKD 2,096 thousand, with no credit period granted to tenants Rental Receivables and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Rental receivables | 94 | 224 | | Prepayments, deposits and other receivables | 2,002 | 792 | | **Total** | **2,096** | **1,016** | Ageing Analysis of Rental Receivables (By invoice date) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 1 to 30 days | – | – | | 31 to 60 days | – | 31 | | 61 to 90 days | – | 64 | | 91 to 180 days | – | 129 | | Over 180 days | 94 | – | | **Total** | **94** | **224** | - The Group does not grant any credit period to tenants[24](index=24&type=chunk) 3.12 [Other Payables](index=11&type=section&id=3.12%20Other%20Payables) As of June 30, 2025, other payables increased to HKD 54,903 thousand, mainly including rental deposits, other payables and accrued charges, and interest payable on loans Other Payables (As of June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Rental deposits received | 4,608 | 4,070 | | Other payables and accrued charges | 1,868 | 2,471 | | Interest payable on non-controlling interests loan and other loans | 48,427 | 39,566 | | **Total** | **54,903** | **46,107** | 3.13 [Non-Controlling Interests Loan](index=12&type=section&id=3.13%20Non-Controlling%20Interests%20Loan) As of June 30, 2025, the Group had an unsecured non-controlling interests loan of HKD 152.7 million, bearing 10% interest and due April 30, 2026 - As of June 30, 2025, the Group had an unsecured non-controlling interests loan of **HKD 152,700,000**, bearing a fixed annual interest rate of **10%** and due on April 30, 2026[26](index=26&type=chunk) 3.14 [Other Loans](index=12&type=section&id=3.14%20Other%20Loans) As of June 30, 2025, unsecured other loans significantly decreased to HKD 13.103 million, bearing 15% interest and due July 9, 2026 - As of June 30, 2025, the Group's unsecured other loans totaled **HKD 13,103,000**, bearing a fixed annual interest rate of **15%** and due on July 9, 2026[27](index=27&type=chunk) - Other loans decreased from **HKD 51,385,000** as of December 31, 2024, to **HKD 13,103,000** as of June 30, 2025[27](index=27&type=chunk) 3.15 [Bank Borrowings](index=12&type=section&id=3.15%20Bank%20Borrowings) As of June 30, 2025, bank borrowings decreased to HKD 351.76 million, secured by investment properties and classified as current liabilities due to demand clauses Bank Borrowings (As of June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Current bank borrowings | 351,760 | 390,024 | - Bank borrowings are secured by the Group's investment properties of **HKD 680,000,000** and bear interest at an annual rate of **HIBOR plus 1.4%**[28](index=28&type=chunk) - All bank borrowings are classified as current liabilities due to terms in the relevant loan agreements granting the lenders an unconditional right to demand repayment at any time at their discretion[28](index=28&type=chunk) Bank Borrowings Repayment Schedule (Without considering demand repayment clauses) | Repayment Period | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | On demand or within one year | 20,528 | 20,528 | | More than one year but not exceeding two years | 20,528 | 20,528 | | More than two years but not exceeding five years | 61,583 | 61,583 | | After five years | 249,121 | 287,385 | | **Total** | **351,760** | **390,024** | 3.16 [Share Capital](index=13&type=section&id=3.16%20Share%20Capital) As of June 30, 2025, the Company's share capital was HKD 705,363 thousand, reflecting a share consolidation and rights issue Share Capital Movement (As of June 30, 2025) | Item | Number of Shares | Share Capital (HKD thousands) | | :--- | :--- | :--- | | January 1, 2023, December 31, 2023, and January 1, 2024 | 1,089,118,593 | 632,610 | | Less: Share consolidation | (980,206,734) | – | | December 31, 2024, and January 1, 2025 | 108,911,859 | 632,610 | | Add: Shares issued under rights issue | 217,823,718 | 72,753 | | **June 30, 2025** | **326,735,577** | **705,363** | - The share consolidation became effective on **December 17, 2024**, consolidating every ten ordinary shares of **HKD 0.01** each into one consolidated share of **HKD 0.1** each[31](index=31&type=chunk) - The rights issue was completed on **February 5, 2025**, involving the issue of up to **217,823,718** rights shares at a subscription price of **HKD 0.334** per rights share on the basis of two rights shares for every one consolidated share[31](index=31&type=chunk) 3.17 [Fair Value Measurement of Financial Instruments](index=14&type=section&id=3.17%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) Certain financial instruments, like Hong Kong listed equity securities, are measured at fair value using active market quotes (Level 1) Fair Value Measurement of Financial Assets (As of June 30, 2025) | Financial Asset | June 30, 2025 Fair Value (HKD thousands) | December 31, 2024 Fair Value (HKD thousands) | Fair Value Level | Valuation Techniques and Key Inputs | | :--- | :--- | :--- | :--- | :--- | | Hong Kong listed equity securities (Investments held for trading) | 840 | 1,020 | Level 1 | Quoted prices in active markets | - There were no transfers between Level 1, Level 2, and Level 3 during the current and prior periods[34](index=34&type=chunk) - The Directors believe that the carrying amounts of financial assets and financial liabilities recorded at amortised cost approximate their fair values[34](index=34&type=chunk) - The Group is exposed to equity price risk from its investments in listed equity securities, and a decrease in Hong Kong stock prices during the period resulted in the recognition of unrealised losses[34](index=34&type=chunk) 3.18 [Related Party Transactions](index=15&type=section&id=3.18%20Related%20Party%20Transactions) Key management personnel remuneration totaled HKD 665 thousand for the period, with no rental income transactions with common executive director companies Key Management Personnel Remuneration (For the six months ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Short-term benefits | 654 | 684 | | Post-employment benefits costs | 11 | 12 | | **Total** | **665** | **696** | Significant Related Party Transactions (Rental Income) | Relationship with Related Party | Nature of Transaction | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | :--- | | Company with common executive director | Rental income | – | 180 | 3.19 [Review of Interim Accounts](index=15&type=section&id=3.19%20Review%20of%20Interim%20Accounts) The condensed consolidated interim financial statements are unaudited but have been reviewed by the Company's Audit Committee - The condensed consolidated interim financial statements are unaudited but have been reviewed by the Company's Audit Committee[38](index=38&type=chunk) IV. [Management Discussion and Analysis](index=16&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's financial performance, business operations, capital structure, and future outlook 4.1 [Company Performance](index=16&type=section&id=4.1%20Company%20Performance) For the six months ended June 30, 2025, the Group's revenue decreased, but loss attributable to owners and total comprehensive loss significantly narrowed Company Performance Overview (For the six months ended June 30, 2025) | Indicator | 2025 (Approx. HKD millions) | 2024 (Approx. HKD millions) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 5.5 | 6.7 | Decrease 18% | | Loss attributable to owners of the Company | 15.3 | 272.9 | Significant Narrowing | | Total comprehensive loss | 17.9 | 506.9 | Significant Narrowing | | Basic loss per share (HK cents) | 5.51 | 224.75 (Restated) | Significant Narrowing | 4.2 [Business Review and Outlook](index=16&type=section&id=4.2%20Business%20Review%20and%20Outlook) This section reviews the Group's property and securities investment performance and outlines expectations for improved rental income and asset fair values - The Group continues to engage in its core businesses in Hong Kong, primarily **property investment** and **securities investment**[41](index=41&type=chunk) 4.2.1 [Business Review](index=16&type=section&id=4.2.1%20Business%20Review) The Group's core businesses, property and securities investment in Hong Kong, experienced decreased rental income and unrealized losses due to market volatility 4.2.1.1 [Property Investment](index=16&type=section&id=4.2.1.1%20Property%20Investment) As of June 30, 2025, the investment property portfolio was valued at HKD 768.3 million, with rental income decreasing by 18% for the period - As of June 30, 2025, the carrying amount of the investment property portfolio was approximately **HKD 768.3 million**[42](index=42&type=chunk) Rental Income (For the six months ended June 30, 2025) | Property Location | 2025 (HKD thousands) | 2024 (HKD thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | 9/F, Wing Hang Commercial Building, Queen's Road Central, Hong Kong | – | 720 | (100%) | | 10/F, Wing Hang Commercial Building, Queen's Road Central, Hong Kong | 743 | 743 | 0% | | Workshop 5, 4/F, Fu Kar Industrial Building, 234 Aberdeen Main Road, Hong Kong | 126 | 126 | 0% | | Commercial Podium, Jing Wei Plaza, 1 Wellington Street, Hong Kong | 4,646 | 5,157 | (10%) | | **Total** | **5,515** | **6,746** | **(18%)** | - Management will continue to review the investment property portfolio, seek potential acquisition and/or disposal opportunities, and re-evaluate market promotion strategies to reduce the vacancy rate of investment properties[42](index=42&type=chunk)[11](index=11&type=chunk) - The property on 9/F, Wing Hang Commercial Building was vacant during the period, but an offer to lease agreement has been entered into with a potential tenant, with the lease expiring in October 2028[46](index=46&type=chunk) 4.2.1.2 [Securities Investment](index=18&type=section&id=4.2.1.2%20Securities%20Investment) The Group recorded unrealized losses of approximately HKD 200 thousand on investments held for trading due to Hong Kong stock market volatility - During the period, due to the volatile Hong Kong stock market, the Group recorded an unrealised loss of approximately **HKD 200,000** on investments held for trading, a significant narrowing from **HKD 2,300,000** in the prior period[48](index=48&type=chunk) - As of June 30, 2025, investments held for trading amounted to approximately **HKD 800,000**, comprising one listed equity security on the Main Board of the Stock Exchange[48](index=48&type=chunk) Investments Held for Trading Portfolio (As of June 30, 2025) | Stock Code | Stock Name | Shares Held as of Dec 31, 2024 | Fair Value as of Dec 31, 2024 (HKD thousands) | Fair Value Change for the Period (HKD thousands) | Shares Held as of Jun 30, 2025 | Fair Value as of Jun 30, 2025 (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1557 | Jianhong Group Holdings | 6,000,000 | 1,020 | (180) | 6,000,000 | 840 | 4.2.2 [Outlook](index=19&type=section&id=4.2.2%20Outlook) The Group anticipates positive impacts from economic reopening, expecting increased rental income and fair values for investment properties and trading investments - Looking ahead, the full reopening of the regional economy is expected to have a positive impact on the Group's property investments, with anticipated increases in rental income and the fair values of investment properties and investments held for trading[49](index=49&type=chunk) - The Group is committed to improving property occupancy rates and seeking potential property acquisition and/or disposal opportunities to generate stable income and capital appreciation from properties[49](index=49&type=chunk) - Demand for office space, particularly from retail, entertainment, financial institutions, and professional services companies, is expected to increase, potentially leading to better future financial performance[49](index=49&type=chunk) 4.3 [Capital Reorganisation](index=19&type=section&id=4.3%20Capital%20Reorganisation) The Group completed a share consolidation, change in board lot size, and rights issue, raising net proceeds for loan repayment and working capital 4.3.1 [Share Consolidation](index=19&type=section&id=4.3.1%20Share%20Consolidation) The Company completed a share consolidation on December 17, 2024, merging ten existing shares into one consolidated share - The Company completed a share consolidation on **December 17, 2024**, consolidating every ten (10) existing shares into one (1) consolidated share[50](index=50&type=chunk) 4.3.2 [Change in Board Lot Size](index=19&type=section&id=4.3.2%20Change%20in%20Board%20Lot%20Size) The board lot size for the Company's shares traded on the Stock Exchange changed from 3,000 existing shares to 6,000 consolidated shares, effective December 17, 2024 - The board lot size for the Company's shares traded on the Stock Exchange changed from **3,000 existing shares** to **6,000 consolidated shares**, effective **December 17, 2024**[51](index=51&type=chunk) 4.3.3 [Rights Issue](index=20&type=section&id=4.3.3%20Rights%20Issue) The Company completed a rights issue on January 15, 2025, issuing up to 217,823,718 rights shares at HKD 0.334 per share, raising HKD 69.55 million net proceeds - The Company completed a rights issue on **January 15, 2025**, issuing up to **217,823,718** rights shares at a subscription price of **HKD 0.334** per rights share on the basis of two rights shares for every one consolidated share[52](index=52&type=chunk) - The rights issue was undersubscribed by **82,204,791** rights shares, representing approximately **37.74%** of the total, but these unsubscribed shares were successfully placed by the placing agent to no fewer than six independent placees[53](index=53&type=chunk) - The net proceeds from the rights issue were approximately **HKD 69.55 million**, of which approximately **HKD 44 million** was used for partial repayment of a loan due to a major shareholder, and the remaining **HKD 25.55 million** for the Group's general working capital[54](index=54&type=chunk) 4.4 [Financial Review](index=21&type=section&id=4.4%20Financial%20Review) This section reviews the Group's improved liquidity, reduced gearing ratio, changes in capital structure, and absence of significant risks or transactions 4.4.1 [Liquidity and Financial Resources](index=21&type=section&id=4.4.1%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's bank balances and cash significantly increased, funding operations through internal resources and various borrowings - As of June 30, 2025, the Group's bank balances and cash were approximately **HKD 8.3 million**, a significant increase from approximately **HKD 0.6 million** as of December 31, 2024[55](index=55&type=chunk) Interest-Bearing Borrowings (As of June 30, 2025) | Borrowing Type | June 30, 2025 (Approx. HKD millions) | December 31, 2024 (Approx. HKD millions) | | :--- | :--- | :--- | | Bank borrowings | 351.8 | 390.0 | | Non-controlling interests loan | 152.7 | 152.7 | | Other loans | 13.1 | 51.4 | 4.4.2 [Gearing Ratio](index=21&type=section&id=4.4.2%20Gearing%20Ratio) As of June 30, 2025, the gearing ratio significantly decreased to 897% from 25,110%, primarily due to an increase in equity attributable to owners - As of June 30, 2025, the gearing ratio was **897%**, a significant decrease from **25,110%** as of December 31, 2024[56](index=56&type=chunk) - The decrease in the gearing ratio was primarily due to an increase in equity attributable to owners of the Company during the period[56](index=56&type=chunk) 4.4.3 [Capital Structure](index=21&type=section&id=4.4.3%20Capital%20Structure) As of June 30, 2025, the total number of issued ordinary shares increased due to the rights issue, with net proceeds used for loan repayment and working capital - As of June 30, 2025, the total number of issued ordinary shares of the Company increased from **108,911,859** as of December 31, 2024, to **326,735,577**[57](index=57&type=chunk) - The net proceeds from the rights issue, approximately **HKD 69.55 million**, were used to partially repay a loan due to a major shareholder (**HKD 44 million**) and for the Group's general working capital (**HKD 25.55 million**)[58](index=58&type=chunk) 4.4.4 [Foreign Exchange Fluctuation Risk](index=22&type=section&id=4.4.4%20Foreign%20Exchange%20Fluctuation%20Risk) The Group did not have any significant foreign exchange fluctuation risk during the period - The Group did not have any significant foreign exchange fluctuation risk during the period[60](index=60&type=chunk) 4.4.5 [Pledge of Group Assets](index=22&type=section&id=4.4.5%20Pledge%20of%20Group%20Assets) As of June 30, 2025, investment properties totaling approximately HKD 680 million were pledged as security for the Group's bank borrowings - As of June 30, 2025, investment properties of approximately **HKD 680 million** were pledged as security for the Group's bank borrowings of approximately **HKD 351.8 million**[61](index=61&type=chunk) 4.4.6 [Contingent Liabilities and Capital Commitments](index=22&type=section&id=4.4.6%20Contingent%20Liabilities%20and%20Capital%20Commitments) As of June 30, 2025, the Company had no contingent liabilities, and the Group had no significant capital commitments - As of June 30, 2025, the Company had no contingent liabilities[62](index=62&type=chunk) - As of June 30, 2025, the Group had no significant capital commitments[63](index=63&type=chunk) 4.4.7 [Significant Acquisitions and Disposals](index=22&type=section&id=4.4.7%20Significant%20Acquisitions%20and%20Disposals) The Group did not undertake any significant acquisitions or disposals during the period - The Group did not undertake any significant acquisitions or disposals during the period[64](index=64&type=chunk) 4.4.8 [Employees and Remuneration Policy](index=22&type=section&id=4.4.8%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 8 staff in Hong Kong, offering competitive remuneration and potential discretionary year-end bonuses - As of June 30, 2025, the Group employed **8 staff** in Hong Kong[65](index=65&type=chunk) - The Group offers competitive remuneration packages based on industry practice and individual employee performance, and may grant discretionary year-end bonuses to well-performing employees[65](index=65&type=chunk) 4.4.9 [Interim Dividends](index=22&type=section&id=4.4.9%20Interim%20Dividends) No dividends were paid, declared, or proposed for the period, as the Board decided against any distribution - No dividends were paid, declared, or proposed for the period, and the Board has decided not to pay any dividends for the period[66](index=66&type=chunk) V. [Other Information and Corporate Governance](index=23&type=section&id=V.%20Other%20Information%20and%20Corporate%20Governance) This section covers disclosures regarding directors' and substantial shareholders' interests, securities transactions, and compliance with corporate governance codes 5.1 [Directors' and Chief Executive's Interests](index=23&type=section&id=5.1%20Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, no directors or chief executive had registrable interests or short positions in the Company's or its associated corporations' securities - As of June 30, 2025, no Directors or chief executive of the Company and their associates had any registrable interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[67](index=67&type=chunk) 5.2 [Substantial Shareholders' Interests](index=23&type=section&id=5.2%20Substantial%20Shareholders'%20Interests) As of June 30, 2025, the Company's register of substantial shareholders showed no direct or indirect interests of 5% or more in the issued share capital - As of June 30, 2025, the Company's register of substantial shareholders showed no shareholders who had notified the Company of direct or indirect interests or short positions of **5% or more** in the Company's issued share capital[68](index=68&type=chunk) 5.3 [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=5.3%20Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries entered into arrangements for directors to subscribe for securities, nor did they purchase, sell, or redeem any listed securities - Neither the Company, any of its subsidiaries, nor any fellow subsidiaries entered into any arrangements during the period and up to the date of this announcement that would grant Directors or the Company's chief executive or their respective associates any right to subscribe for securities of the Company or any of its associated corporations[69](index=69&type=chunk) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[70](index=70&type=chunk) 5.4 [Compliance with the Model Code for Securities Transactions by Directors](index=24&type=section&id=5.4%20Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Model Code for securities transactions by directors, and all directors confirmed compliance during the period - The Company has adopted the Model Code as its code of conduct for Directors' securities transactions, and all Directors confirmed compliance with the standards set out in the Model Code during the period[71](index=71&type=chunk) 5.5 [Compliance with the Corporate Governance Code](index=24&type=section&id=5.5%20Compliance%20with%20the%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code, with a deviation from C.2.1 regarding the separation of Chairman and CEO functions - The Company has complied with all code provisions of the Corporate Governance Code set out in Part 2 of Appendix 14 to the Listing Rules during the period, except for a deviation from code provision C.2.1, which stipulates that the roles of chairman and chief executive should be separate[72](index=72&type=chunk) - The Company does not have a formal chief executive, and the responsibilities of the chief executive and the day-to-day operations of the Group are handled collectively by the executive Directors[73](index=73&type=chunk) - The Board believes that a balance of power and authority is ensured through the operation of the Board, which comprises individuals with extensive experience, and through regular Board meetings to discuss matters affecting the Group's operations[73](index=73&type=chunk) 5.6 [Disclosure of Directors' Information](index=24&type=section&id=5.6%20Disclosure%20of%20Directors'%20Information) No changes in directors' information have occurred since the publication of the Company's 2024 annual report, as per Listing Rule 13.51.B - No changes in Directors' information have occurred since the disclosure in the Company's 2024 annual report or announcements regarding Directors' appointments and/or resignations, as per Listing Rule 13.51.B[74](index=74&type=chunk) 5.7 [Audit Committee](index=25&type=section&id=5.7%20Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting principles, audit, internal controls, and interim financial statements - The Board has established an Audit Committee, comprising three independent non-executive Directors (Mr. Lam Wai Hung, Mr. Mak Ka Wing, and Mr. Lam Cheung Shing)[75](index=75&type=chunk) - The Audit Committee is primarily responsible for reviewing the accounting principles and practices adopted by the Group and discussing audit, internal control, and financial reporting matters, including the review of the Group's unaudited interim financial statements for the six months ended June 30, 2025[75](index=75&type=chunk) 5.8 [Board of Directors](index=25&type=section&id=5.8%20Board%20of%20Directors) As of the announcement date, the Board of Directors includes executive, non-executive, and independent non-executive directors - As of the date of this announcement, the Board of Directors comprises Mr. Cheung Sze Man and Ms. Li Ka Lai as executive Directors; Mr. Chu Wai Man as non-executive Director; and Mr. Mak Ka Wing, Mr. Lam Wai Hung, and Mr. Lam Cheung Shing as independent non-executive Directors[76](index=76&type=chunk)

Company Information and Report Overview [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) China Sci-Tech Industrial Investment Group Limited (Stock Code: 339) announced its interim results for the six months ended June 30, 2025, with the company incorporated in Bermuda, listed on the Main Board of the HKEX, and primarily engaged in investing and trading listed and unlisted securities - Company Name: China Sci-Tech Industrial Investment Group Limited (Stock Code: **339**)[2](index=2&type=chunk) - The company is incorporated in Bermuda, with its principal place of business in Hong Kong, and its shares are listed on the Main Board of the Hong Kong Stock Exchange[5](index=5&type=chunk) - The company's principal business involves investing in and trading listed and unlisted securities[5](index=5&type=chunk) [Report Statement and Basis of Preparation](index=1&type=section&id=Report%20Statement%20and%20Basis%20of%20Preparation) This interim results announcement is unaudited, prepared in accordance with HKAS 34 and the HKEX Listing Rules, using the same accounting policies as the 2024 annual consolidated financial statements, without early adoption of new standards - The condensed consolidated financial statements are **unaudited**[7](index=7&type=chunk) - Prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the HKEX Listing Rules[8](index=8&type=chunk) - Accounting policies are consistent with the 2024 annual consolidated financial statements, with no early adoption of new and revised Hong Kong Financial Reporting Standards[8](index=8&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) For the six months ended June 30, 2025, the Group achieved a profit of **HKD 5,107,044**, a significant turnaround from a loss of HKD 3,757,925 in the prior period, primarily due to a substantial increase in other income (directors' waived remuneration and loans) and net fair value changes of financial assets Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 69,163 | 82,643 | ↓16.3% | | Other Income | 5,572,694 | – | Significant increase | | Net fair value changes of financial assets at fair value through profit or loss | 1,516,360 | 504,420 | ↑200.6% | | Gain on disposal of subsidiaries | 681,555 | – | New item | | Administrative and other operating expenses | (2,691,713) | (4,282,395) | ↓37.1% | | Finance costs | (41,015) | (62,593) | ↓34.5% | | Profit/(Loss) before income tax expense | 5,107,044 | (3,757,925) | Turnaround to profit | | Profit/(Loss) for the period attributable to owners of the Company | 5,107,044 | (3,757,925) | Turnaround to profit | | Basic and diluted earnings/(loss) per share | 0.018 | (0.013) | Turnaround to profit | [Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net assets turned from a net liability of HKD 742,061 at the end of 2024 to net assets of **HKD 4,363,829**, primarily due to a substantial increase in financial assets at fair value through profit or loss and a significant reduction in current liabilities Summary of Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 June 30 (HKD) | 2024 Dec 31 (HKD) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 2,022,558 | 2,571,102 | ↓21.4% | | Current assets | 9,706,155 | 5,964,680 | ↑62.7% | | Financial assets at fair value through profit or loss | 6,687,060 | 5,170,700 | ↑29.3% | | Cash and cash equivalents | 2,690,945 | 354,521 | ↑658.9% | | Current liabilities | 4,468,989 | 7,819,343 | ↓42.9% | | Accruals and other payables | 775,502 | 3,127,679 | ↓75.2% | | Directors' loans (current) | – | 3,600,000 | ↓100% | | Net current assets/(liabilities) | 5,237,166 | (1,854,663) | Turnaround to profit | | Non-current liabilities | 2,895,895 | 1,458,500 | ↑98.5% | | Net assets/(liabilities) | 4,363,829 | (742,061) | Turnaround to profit | | Total equity/(deficit) | 4,363,829 | (742,061) | Turnaround to profit | Notes to the Condensed Consolidated Financial Statements [1. General Information](index=3&type=section&id=1.%20General%20Information) The Company is an investment holding company primarily engaged in investing in and trading listed and unlisted securities, with its shares listed on the Main Board of the Hong Kong Stock Exchange - The Company is an investment holding company, with its principal business being the investment and trading of listed and unlisted securities[5](index=5&type=chunk) [2. Basis of Preparation](index=3&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, applying the same accounting policies as the previous year, without early adoption of newly issued but not yet effective HKFRSs - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure provisions of the HKEX Listing Rules[8](index=8&type=chunk) - The basis of preparation is consistent with the accounting policies adopted in the annual consolidated financial statements for the year ended December 31, 2024, with no early adoption of new and revised Hong Kong Financial Reporting Standards[8](index=8&type=chunk) [3. Changes in Hong Kong Financial Reporting Standards](index=3&type=section&id=3.%20Changes%20in%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group has adopted several HKFRS amendments effective for the first time in the current accounting period, none of which had a significant impact on the results or financial position for the current or prior periods - The Group has adopted several amendments to Hong Kong Financial Reporting Standards effective for the first time in the current accounting period, including HKAS 21 (Amendment) Lack of Exchangeability[9](index=9&type=chunk) - These amendments had no significant impact on the Group's results or financial position[9](index=9&type=chunk) [4. Revenue and Segment Information](index=4&type=section&id=4.%20Revenue%20and%20Segment%20Information) Revenue for the period was **HKD 69,163**, a 16.3% year-on-year decrease, primarily from dividend income from listed equity investments, with no segment information presented as all revenue is derived from Hong Kong investment operations Revenue Composition (For the six months ended June 30) | Source of Revenue | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Dividend income from listed equity investments | 69,125 | 77,633 | ↓11.1% | | Bank interest income | 35 | 114 | ↓69.3% | | Other interest income | 3 | 4,896 | ↓99.9% | | **Total Revenue** | **69,163** | **82,643** | **↓16.3%** | - All of the Group's revenue, operating results, assets, and liabilities are derived from investment operations in Hong Kong, thus no segment information is presented[10](index=10&type=chunk) [5. Other Income](index=4&type=section&id=5.%20Other%20Income) Other income for the period was **HKD 5,572,694**, primarily from directors waiving accrued remuneration of HKD 1,972,694 and directors' loans of HKD 3,600,000, with no such income in the prior period - For the six months ended June 30, 2025, other income amounted to **HKD 5,572,694**[11](index=11&type=chunk) - Other income primarily arose from directors waiving accrued directors' remuneration of **HKD 1,972,694** and directors' loans of **HKD 3,600,000**[11](index=11&type=chunk) - There was no other income in the corresponding period of 2024[11](index=11&type=chunk) [6. Net Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss](index=4&type=section&id=6.%20Net%20Fair%20Value%20Changes%20of%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Net unrealized gains from financial assets at fair value through profit or loss significantly increased to **HKD 1,516,360** for the period, representing a substantial 200.6% year-on-year growth Net Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss (For the six months ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Net unrealized gains | 1,516,360 | 504,420 | ↑200.6% | [7. Finance Costs](index=4&type=section&id=7.%20Finance%20Costs) Finance costs for the period primarily consisted of interest expense on lease liabilities, amounting to **HKD 41,015**, a 34.5% year-on-year decrease Finance Costs (For the six months ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Interest expense on lease liabilities | 41,015 | 62,593 | ↓34.5% | [8. Profit/(Loss) Before Income Tax Expense](index=5&type=section&id=8.%20Profit%2F%28Loss%29%20Before%20Income%20Tax%20Expense) Profit before income tax expense for the period was **HKD 5,107,044**, primarily influenced by reduced administrative and other operating expenses (lower directors' remuneration) and decreased depreciation charges Key Expense Items (For the six months ended June 30) | Expense Item | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Auditor's remuneration | 50,000 | 50,000 | No change | | Depreciation - property, plant and equipment | 2,415 | 73,907 | ↓96.7% | | Depreciation - right-of-use assets | 546,129 | 548,039 | ↓0.3% | | Directors' remuneration - fees | 360,000 | 1,428,000 | ↓74.8% | [9. Income Tax Expense](index=5&type=section&id=9.%20Income%20Tax%20Expense) The Group incurred no income tax expense for the period, as sufficient tax losses offset taxable profits; as of June 30, 2025, the Group had unutilized tax losses of **HKD 118,868,784** available to offset future profits, but no deferred tax assets were recognized - No Hong Kong profits tax provision was made for the period, as there were sufficient available tax losses to offset taxable profits[17](index=17&type=chunk) - As of June 30, 2025, the Group had unutilized tax losses of **HKD 118,868,784** (December 31, 2024: HKD 122,091,318) and unrealized losses on financial assets at fair value through profit or loss of **HKD 3,060,573** (December 31, 2024: HKD 4,576,933) available to offset future profits[17](index=17&type=chunk) - No deferred tax assets were recognized due to the unpredictability of future profit sources[17](index=17&type=chunk) [10. Dividends](index=5&type=section&id=10.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[18](index=18&type=chunk) [11. Earnings/(Loss) Per Share](index=5&type=section&id=11.%20Earnings%2F%28Loss%29%20Per%20Share) Basic and diluted earnings per share for the period were **HKD 0.018**, a turnaround from a loss of HKD 0.013 per share in the prior period, primarily due to increased profit for the period while the weighted average number of ordinary shares outstanding remained unchanged Earnings/(Loss) Per Share (For the six months ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Basic and diluted earnings/(loss) per share | 0.018 | (0.013) | Turnaround to profit | - Earnings/(loss) per share is calculated based on the profit/(loss) attributable to owners of the Company and the weighted average number of ordinary shares outstanding of **288,000,000**[19](index=19&type=chunk) - Diluted earnings/(loss) per share is the same as basic earnings/(loss) per share due to the absence of potentially dilutive ordinary shares[19](index=19&type=chunk) [12. Financial Assets at Fair Value Through Profit or Loss](index=5&type=section&id=12.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the Group's financial assets at fair value through profit or loss (primarily Hong Kong listed equity securities) increased to **HKD 6,687,060**, a significant 29.3% year-on-year growth, aiming for returns through dividend income and fair value gains Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Indicator | 2025 June 30 (HKD) | 2024 Dec 31 (HKD) | Change | | :--- | :--- | :--- | :--- | | Equity securities - Hong Kong listed | 6,687,060 | 5,170,700 | ↑29.3% | - These investments refer to listed equity securities, aiming for returns through dividend income and fair value gains, with no fixed maturity or coupon rate[21](index=21&type=chunk) - The fair value of listed securities is determined based on market quotations[22](index=22&type=chunk) [13. Disposal of Subsidiaries](index=6&type=section&id=13.%20Disposal%20of%20Subsidiaries) During the period, the Company disposed of its entire interests in two wholly-owned subsidiaries, CEIG One Limited and CEIG Two Limited, generating a gain on disposal of **HKD 681,555** - The Company disposed of its entire interests in wholly-owned subsidiaries CEIG One Limited (an investment holding company with no business activities) and CEIG Two Limited (a company with no business operations)[23](index=23&type=chunk) - The disposal was completed in June 2025, resulting in a gain on disposal of **HKD 681,555**[23](index=23&type=chunk) [14. Events After the Reporting Period](index=6&type=section&id=14.%20Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the Company completed a rights issue, issuing up to **144,000,000** rights shares at **HKD 0.07** per share, raising gross proceeds of approximately **HKD 10.08 million** and net proceeds of approximately **HKD 9.2 million** for general working capital - The Company proposed a rights issue on the basis of one rights share for every two shares held, at a subscription price of **HKD 0.07** per rights share, aiming to raise gross proceeds of up to approximately **HKD 10.08 million**[24](index=24&type=chunk) - The rights issue was completed in July 2025, with approximately **25.6%** of the rights shares validly applied for, and the remaining **74.4%** unsubscribed shares successfully placed[24](index=24&type=chunk)[25](index=25&type=chunk) - The net proceeds from the rights issue (after deducting expenses) were approximately **HKD 9.2 million**, to be used as general working capital for the Company[25](index=25&type=chunk) Management Discussion and Analysis [4.1 Performance Review](index=7&type=section&id=4.1%20Performance%20Review) The Group achieved a profit of approximately **HKD 5.107 million** for the period, a significant improvement from a loss of approximately HKD 3.758 million in the prior period, primarily driven by other income from directors' waived remuneration and loans, increased fair value gains on financial assets, and reduced operating expenses Key Financial Performance (For the six months ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. 69,000 | Approx. 83,000 | ↓16.9% | | Other Income | Approx. 5,573,000 | Nil | Significant increase | | Profit/(Loss) attributable to owners of the Company | Approx. 5,107,000 | Approx. (3,758,000) | Turnaround to profit | | Administrative and other operating expenses | Approx. 2,692,000 | Approx. 4,282,000 | ↓37.1% | | Net fair value gains on financial assets at fair value through profit or loss | Approx. 1,516,000 | Approx. 504,000 | ↑200.8% | - The decrease in revenue was primarily due to reduced dividend income from listed equity securities[26](index=26&type=chunk) - The reduction in administrative and other operating expenses was mainly attributable to certain directors waiving their remuneration[26](index=26&type=chunk) [4.2 Interim Dividend](index=7&type=section&id=4.2%20Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[27](index=27&type=chunk) [4.3 Business Review](index=7&type=section&id=4.3%20Business%20Review) In the first half of 2025, the Hang Seng Index surged over **20%**, driven by tech stock recovery, favorable mainland China economic policies, and southbound capital inflows; against this backdrop, the Group disposed of two non-operating subsidiaries and continued to invest in listed equity securities, diversifying its portfolio across internet and technology, investment, property, and resort management sectors - In the first half of 2025, the Hang Seng Index surged by over **20%**, primarily driven by the recovery of technology stocks, favorable economic policies in mainland China, and continuous southbound capital inflows[28](index=28&type=chunk) - The Group disposed of its entire interests in two wholly-owned subsidiaries, CEIG One Limited and CEIG Two Limited, generating a gain on disposal of **HKD 681,555**[29](index=29&type=chunk) - The Company continued to invest in listed equity securities, with a diversified investment portfolio including Alibaba, Tencent, Dingli Capital, and New Silkroad Culturaltainment[29](index=29&type=chunk) [4.4 Liquidity, Financial Resources, and Capital](index=8&type=section&id=4.4%20Liquidity%2C%20Financial%20Resources%2C%20and%20Capital) The Group primarily relies on shareholders' funds, directors' loans, proceeds from share placements, and rights issues to fund its operations; as of June 30, 2025, cash and cash equivalents significantly increased, net assets turned positive from a net liability, and the gearing ratio substantially decreased, indicating improved financial health - The Group primarily relies on shareholders' funds, loans from directors, proceeds from share placements and rights issues, and cash generated from business operations to fund its operations and expansion[30](index=30&type=chunk) Summary of Liquidity and Financial Resources (As of June 30) | Indicator | 2025 June 30 (HKD) | 2024 Dec 31 (HKD) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 2,690,945 | 354,521 | ↑658.9% | | Consolidated net assets/(liabilities) | 4,363,829 | (742,061) | Turnaround to profit | | Consolidated net assets/(liabilities) per share | 0.0152 | (0.0026) | Turnaround to profit | | Accruals and other payables | 775,502 | 3,127,679 | ↓75.2% | | Share application monies | 2,579,535 | – | New item | | Lease liabilities | 1,709,847 | 2,250,164 | ↓24.0% | | Gearing ratio | Approx. 0.63 | Approx. 1.09 | ↓42.2% | [4.4.1 Directors' Loans](index=9&type=section&id=4.4.1%20Directors'%20Loans) During the period, Mr. Sun Bo and Mr. Yang Zhicheng waived directors' loans totaling **HKD 3,600,000**; concurrently, directors provided several interest-free loans totaling **HKD 1,900,000** to support daily operations, repayable by December 31, 2027 - Mr. Sun Bo and Mr. Yang Zhicheng have waived repayment of their directors' loans as of December 31, 2024, totaling **HKD 3,600,000** (Mr. Sun: HKD 3,300,000; Mr. Yang: HKD 300,000)[33](index=33&type=chunk) New Directors' Loans During the Period | Lender | Date | Principal Amount (HKD) | Interest | Maturity Date | Purpose | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Sun | 2025 Jan 7 | 150,000 | Interest-free | 2027 Dec 31 | Support daily operations | | Mr. Sun | 2025 Feb 26 | 110,000 | Interest-free | 2027 Dec 31 | Support daily operations | | Mr. Yang | 2025 Mar 3 | 40,000 | Interest-free | 2027 Dec 31 | Support daily operations | | Mr. Sun | 2025 Mar 27 | 700,000 | Interest-free | 2027 Dec 31 | Support daily operations | | Mr. Sun | 2025 May 6 | 300,000 | Interest-free | 2027 Dec 31 | Support daily operations | | Mr. Sun | 2025 May 30 | 700,000 | Interest-free | 2027 Dec 31 | Support daily operations | | **Total** | | **1,900,000** | | | | [4.4.2 Rights Issue](index=10&type=section&id=4.4.2%20Rights%20Issue) Subsequent to the reporting period, the Company completed a rights issue on a one-for-two basis, issuing up to **144,000,000** rights shares at **HKD 0.07** per share, raising gross proceeds of approximately **HKD 10.08 million** and net proceeds of approximately **HKD 9.2 million** for general working capital - The Company proposed a rights issue on the basis of one rights share for every two shares held on the record date, at a subscription price of **HKD 0.07** per share, aiming to raise gross proceeds of up to approximately **HKD 10.08 million**[35](index=35&type=chunk) - The rights issue was completed after the period, with net proceeds of approximately **HKD 9.2 million** to be used as general working capital for the Company[35](index=35&type=chunk) [4.5 Waiver of Directors' Remuneration](index=10&type=section&id=4.5%20Waiver%20of%20Directors'%20Remuneration) Mr. Sun Bo and Mr. Yang Zhicheng voluntarily waived accrued directors' remuneration totaling **HKD 1,972,694** as of December 31, 2024, and agreed to forgo further directors' fees and other remuneration for the current period - Mr. Sun Bo and Mr. Yang Zhicheng voluntarily waived their accrued directors' remuneration payable as of December 31, 2024, amounting to **HKD 1,828,500** and **HKD 144,194** respectively, totaling **HKD 1,972,694**[36](index=36&type=chunk) - Both directors agreed to waive their rights to receive further directors' fees and other remuneration for the current period[36](index=36&type=chunk) [4.6 Capital Structure](index=10&type=section&id=4.6%20Capital%20Structure) Aside from the rights issue, there were no other significant changes to the Company's overall share capital structure, with the Group comprising solely ordinary shares - Save for what is disclosed in the "Liquidity, Financial Resources and Capital" section, there were no other significant changes to the Company's overall share capital structure[37](index=37&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group comprised solely ordinary shares[37](index=37&type=chunk) [4.7 Capital Expenditure](index=10&type=section&id=4.7%20Capital%20Expenditure) For the six months ended June 30, 2025, the Group incurred no capital expenditure, compared to **HKD 14,299** in the prior period - For the six months ended June 30, 2025, the Group incurred no capital expenditure (2024: **HKD 14,299**)[38](index=38&type=chunk) [4.8 Capital Commitments](index=10&type=section&id=4.8%20Capital%20Commitments) As of June 30, 2025, the Group had no significant capital commitments, consistent with the end of the prior year - As of June 30, 2025, the Group had no significant capital commitments (December 31, 2024: nil)[39](index=39&type=chunk) [4.9 Foreign Exchange Risk](index=10&type=section&id=4.9%20Foreign%20Exchange%20Risk) The Group is exposed to foreign exchange risk from business transactions denominated in RMB and USD, currently without a hedging policy, but the Board will closely monitor it - The Group is exposed to foreign exchange risk arising from certain business transactions denominated in Renminbi and US Dollars[40](index=40&type=chunk) - The Group currently has no foreign exchange hedging policy in respect of foreign currency transactions, assets, and liabilities[40](index=40&type=chunk) - The Board will closely monitor foreign exchange risk[40](index=40&type=chunk) [4.10 Employees and Remuneration Policy](index=11&type=section&id=4.10%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had a total of **10** employees (including directors), with total staff costs of **HKD 999,000**, a significant 56.2% year-on-year decrease; remuneration packages are determined based on market conditions, individual qualifications, and performance - As of June 30, 2025, the Group employed a total of **10** employees (including the Company's directors), consistent with December 31, 2024[41](index=41&type=chunk) Staff Costs (For the six months ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Total staff costs | 999,000 | 2,282,000 | ↓56.2% | - Remuneration packages include basic salaries, mandatory provident fund contributions, medical insurance, and other benefits, determined with reference to market conditions, individual qualifications, and performance[41](index=41&type=chunk) [4.11 Pledge of Group Assets](index=11&type=section&id=4.11%20Pledge%20of%20Group%20Assets) As of June 30, 2025, the Group had no pledge of its assets, consistent with the end of the prior year - As of June 30, 2025, the Group had no pledge of its assets (December 31, 2024: nil)[42](index=42&type=chunk) [4.12 Contingent Liabilities](index=11&type=section&id=4.12%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities, consistent with the end of the prior year - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[43](index=43&type=chunk) [4.13 Outlook](index=11&type=section&id=4.13%20Outlook) Facing market volatility and global economic challenges, the Group will prudently manage existing investments and actively seek high-potential opportunities to enrich its portfolio and enhance long-term shareholder returns - The Group will prudently manage its existing investments and strictly adhere to its established objectives and policies[44](index=44&type=chunk) - The Group will continue to actively seek and evaluate high-potential investment opportunities to enrich its investment portfolio and enhance long-term shareholder returns[44](index=44&type=chunk) [4.14 Significant Acquisitions and Disposals](index=11&type=section&id=4.14%20Significant%20Acquisitions%20and%20Disposals) During the period, the Group disposed of its entire interests in two non-operating subsidiaries, CEIG One Limited and CEIG Two Limited, for a total consideration of **HKD 1,560**, generating a gain on disposal of **HKD 681,555**, which was not material to the overall financial position and operating results - The Group disposed of its entire interests in two wholly-owned subsidiaries, CEIG One Limited and CEIG Two Limited, for a total consideration of **HKD 1,560**[45](index=45&type=chunk) - The disposal was completed in June 2025, resulting in a gain on disposal of **HKD 681,555**[45](index=45&type=chunk) - The Group considers these disposals to have no material impact on its overall financial position and operating results[45](index=45&type=chunk) [4.15 Future Investment Plans](index=11&type=section&id=4.15%20Future%20Investment%20Plans) As of the announcement date, the Group has no future plans or executed agreements for significant investments or capital assets, but will conduct feasibility studies for potential investment opportunities in the future - As of the date of this announcement, the Group has not entered into any agreements for significant investments or capital assets, nor does it have any other future plans regarding significant investments or capital assets[46](index=46&type=chunk) - Should any potential investment opportunities arise in the future, the Group will conduct feasibility studies and prepare to implement plans[46](index=46&type=chunk) [4.16 Events After Reporting Period](index=12&type=section&id=4.16%20Events%20After%20Reporting%20Period) The Company completed a rights issue after the reporting period (July 7, 2025), raising net proceeds of approximately **HKD 9.2 million** for general working capital - The Company completed a rights issue on July 7, 2025, issuing up to **144,000,000** rights shares at **HKD 0.07** per share, raising gross proceeds of approximately **HKD 10.08 million**[47](index=47&type=chunk) - The estimated net proceeds from the rights issue are approximately **HKD 9.2 million**, to be used as general working capital for the Company[47](index=47&type=chunk) [4.17 Dealings in Listed Securities](index=12&type=section&id=4.17%20Dealings%20in%20Listed%20Securities) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and there were no treasury shares - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[48](index=48&type=chunk) - The Company held no treasury shares as of June 30, 2025[48](index=48&type=chunk) Corporate Governance and Other Information [5.1 Corporate Governance](index=12&type=section&id=5.1%20Corporate%20Governance) The Company is committed to maintaining high standards of corporate governance practices, having adopted principles and procedures compliant with Appendix C1 of the Listing Rules' Corporate Governance Code, and adhered to relevant code provisions during the period - The Company is committed to maintaining and ensuring high standards of corporate governance practices, and has adopted principles and procedures in compliance with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[49](index=49&type=chunk) - For the six months ended June 30, 2025, the Company complied with the mandatory disclosure requirements and applicable code provisions under the Corporate Governance Code[49](index=49&type=chunk) [5.2 Standard Code for Securities Transactions by Directors](index=12&type=section&id=5.2%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code during the period after specific enquiry - The Company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, with terms no less exacting than those in the Model Code[50](index=50&type=chunk) - Following specific enquiry with all Directors, all Directors complied with the required standards and their code of conduct as set out in the Standard Code during the period[50](index=50&type=chunk) [5.3 Audit Committee](index=13&type=section&id=5.3%20Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and discussed financial reporting procedures, internal controls, and risk management systems - The Company's Audit Committee comprises three independent non-executive directors: Mr. Mok Ho Ming (Chairman), Mr. Chan Ming, and Mr. Wong Yan Wai, whose terms of reference comply with the Listing Rules[51](index=51&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and discussed financial reporting procedures, internal controls, and risk management systems[51](index=51&type=chunk) [5.4 Review of Accounts](index=13&type=section&id=5.4%20Review%20of%20Accounts) The external auditor, L&H CPA Limited, reviewed the condensed consolidated financial statements for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the HKICPA - The external auditor, L&H CPA Limited, reviewed the condensed consolidated financial statements for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[52](index=52&type=chunk) [5.5 Publication of Report](index=13&type=section&id=5.5%20Publication%20of%20Report) This announcement has been published on the Company's website and the HKEX website, and the interim report will be published and dispatched to shareholders who elected to receive printed copies at the appropriate time - This announcement has been published on the Company's website (www.ceig.hk) and the HKEX website (www.hkexnews.hk)[53](index=53&type=chunk) - The Group's 2025 interim report for the six months ended June 30, 2025, will be published and dispatched to shareholders of the Company who elected to receive printed copies at the appropriate time[53](index=53&type=chunk) [5.6 Board Information](index=13&type=section&id=5.6%20Board%20Information) This announcement is issued by Mr. Sun Bo, Chairman of the Board, on behalf of the Board, and lists the executive, non-executive, and independent non-executive directors as of the announcement date - This announcement is issued by Mr. Sun Bo, Chairman of the Board, on behalf of the Board[54](index=54&type=chunk) - As of the announcement date, the Board members include Executive Directors Mr. Sun Bo (Chairman) and Mr. Wang Daming; Non-executive Directors Mr. Yang Zhicheng (Vice Chairman), Mr. He Yu, and Ms. Yan Jia; and Independent Non-executive Directors Mr. Chan Ming, Mr. Mok Ho Ming, and Mr. Wong Yan Wai[55](index=55&type=chunk)

[Company Overview](index=1&type=section&id=Company%20Overview) [Report Summary](index=1&type=section&id=Report%20Summary) China Renaissance Holdings Limited reported unaudited consolidated results for the six months ended June 30, 2025, reviewed by its audit committee and presented in RMB - Company Name: **CHINA RENAISSANCE HOLDINGS LIMITED**[2](index=2&type=chunk) - Reporting Period: Unaudited interim results for the **six months ended June 30, 2025**[2](index=2&type=chunk)[3](index=3&type=chunk) - Reviewing Body: The company's Audit Committee reviewed these interim results[3](index=3&type=chunk) - Presentation Currency: Unaudited condensed consolidated financial statements are presented in **RMB**[4](index=4&type=chunk) [Financial Summary](index=2&type=section&id=Financial%20Summary) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20Summary) Total revenue and net investment income grew **26.9% to RMB 456 million**, with operating profit turning profitable to **RMB 75.83 million** and profit for the period reaching **RMB 66.022 million** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 425,142 | 328,921 | 96,221 | 29.3% | | Total Revenue and Net Investment Income | 456,407 | 359,527 | 96,880 | 26.9% | | Total Operating Expenses | (380,577) | (447,263) | 66,686 | -14.9% | | Operating Profit/(Loss) | 75,830 | (87,736) | 163,566 | Turned profitable | | Profit/(Loss) Before Tax | 98,013 | (73,619) | 171,632 | Turned profitable | | Income Tax Expense | (31,991) | (12,348) | (19,643) | 159.1% | | Profit/(Loss) for the Period | 66,022 | (85,967) | 151,989 | Turned profitable | | Profit/(Loss) for the Period Attributable to Owners of the Company | 64,984 | (73,822) | 138,806 | Turned profitable | [Adjusted Net Loss Attributable to Owners of the Company](index=2&type=section&id=Adjusted%20Net%20Loss%20Attributable%20to%20Owners%20of%20the%20Company) Adjusted net loss attributable to owners of the company (including unrealized net carried interest) significantly narrowed to **RMB 36.993 million**, driven by reduced share-based payment expenses and unrealized net carried interest reversal Adjusted Net Loss Attributable to Owners of the Company (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period Attributable to Owners of the Company | 64,984 | (73,822) | 138,806 | Turned profitable | | Add: Share-based payment expenses | 14,037 | 28,308 | (14,271) | -50.4% | | Subtotal before carried interest related adjustments | 79,021 | (45,514) | 124,535 | Turned profitable | | Add: Reversal of unrealized net carried interest | (116,014) | (72,382) | (43,632) | 60.3% | | Adjusted Net Loss Attributable to Owners of the Company | (36,993) | (117,896) | 80,903 | -68.6% | - The reversal of unrealized net carried interest was mainly affected by fair value changes of funds managed by the investment management business, with cumulative total unrealized carried interest of **RMB 1.9 billion** (corresponding net carried interest of **RMB 500 million**) as of June 30, 2025[8](index=8&type=chunk) [Business Review and Outlook](index=4&type=section&id=Business%20Review%20and%20Outlook) [Business Review](index=4&type=section&id=Business%20Review) China Renaissance Group achieved strong recovery in H1 2025, with total revenue and net investment income up **27%**, operating profit and profit attributable to owners turning profitable, driven by investment management and improved securities performance - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, exceeding the full-year target of 5%, laying the foundation for capital market recovery[9](index=9&type=chunk) H1 2025 Group Overall Performance | Indicator | H1 2025 (RMB) | Year-on-year Growth | | :--- | :--- | :--- | | Total Revenue and Net Investment Income | 460 million | 27% | | Operating Profit | 76 million | Turned profitable | | Profit Attributable to Owners of the Company | 65 million | Turned profitable | - The investment management business contributed **52%** of the Group's total revenue, with fund exits totaling **RMB 1.3 billion**, and **5 out of 11** main funds and several project funds exceeding **100% DPI** and beginning to generate carried interest[10](index=10&type=chunk) - Investment banking business achieved revenue of approximately **RMB 70 million** in the first half, focusing on AI, embodied intelligence, and advanced manufacturing, and earned multiple top industry rankings[11](index=11&type=chunk) - China Renaissance Securities' total revenue and net investment income reached **RMB 130 million**, a **25%** year-on-year increase; retail brokerage revenue grew by **110%** year-on-year, and operating loss significantly narrowed by **60%**[14](index=14&type=chunk) [Business Outlook](index=6&type=section&id=Business%20Outlook) China Renaissance will leverage global economic shifts, focusing on AI and Web3.0 through integrated market strategies and traditional-decentralized finance convergence, to foster future industry leaders - Group operations are gradually stabilizing, with continuous improvement in cash flow and financial position[16](index=16&type=chunk) - Strategic focus on cutting-edge technology fields with disruptive potential, such as artificial intelligence and embodied intelligence, to identify and cultivate future industry leaders with a forward-looking vision[16](index=16&type=chunk) - Innovating business models by synergizing primary and secondary markets, and integrating traditional finance (Tri-Fi) with decentralized finance (De-Fi), to continuously deepen investment in the Web3.0 sector[16](index=16&type=chunk) [Segment Performance Analysis](index=7&type=section&id=Segment%20Performance%20Analysis) [Segment Revenue and Profit Overview](index=7&type=section&id=Segment%20Revenue%20and%20Profit%20Overview) Investment Management segment revenue and net investment income surged **80.8%**, with operating profit up **251.7%**, while China Renaissance Securities saw **24.5%** revenue growth and narrowed losses, and Investment Banking revenue declined **29.0%** but losses also narrowed Segment Revenue and Net Investment Income (For the six months ended June 30) | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Investment Banking | 69,318 | 97,570 | (28,252) | -29.0% | | Investment Management | 237,464 | 131,366 | 106,098 | 80.8% | | China Renaissance Securities | 128,810 | 103,466 | 25,344 | 24.5% | | Others | 20,815 | 27,125 | (6,310) | -23.3% | | **Total Revenue and Net Investment Income** | **456,407** | **359,527** | **96,880** | **26.9%** | Segment Operating Profit/Loss (For the six months ended June 30) | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Investment Banking | (29,899) | (61,548) | 31,649 | -51.4% | | Investment Management | 139,018 | 39,531 | 99,487 | 251.7% | | China Renaissance Securities | (17,126) | (42,494) | 25,368 | -59.7% | | Others | (16,163) | (23,225) | 7,062 | -30.4% | | **Operating Profit/(Loss)** | **75,830** | **(87,736)** | **163,566** | **Turned profitable** | [Investment Banking](index=8&type=section&id=Investment%20Banking) Investment Banking segment revenue decreased **29.0% to RMB 69.318 million**, mainly due to an **84.1% drop** in equity underwriting fees, despite a **122.1% increase** in advisory service transaction value, with operating loss narrowing **51.4%** Investment Banking Segment Revenue and Expenses (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Advisory Services | 34,950 | 37,873 | (2,923) | -7.7% | | Equity Underwriting | 5,120 | 32,164 | (27,044) | -84.1% | | Sales, Trading and Brokerage | 29,248 | 27,533 | 1,715 | 6.2% | | **Segment Revenue** | **69,318** | **97,570** | **(28,252)** | **-29.0%** | | Staff Costs and Benefits | (67,768) | (112,035) | 44,267 | -39.5% | | Other Operating Expenses | (31,446) | (47,087) | 15,641 | -33.2% | | **Segment Operating Expenses** | **(99,217)** | **(159,118)** | **59,901** | **-37.6%** | | **Segment Operating Loss** | **(29,899)** | **(61,548)** | **31,649** | **-51.4%** | Investment Banking Transaction Value (For the six months ended June 30) | Transaction Type | 2025 (RMB millions) | 2024 (RMB millions) | Change (RMB millions) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Advisory Services | 5,881 | 2,648 | 3,233 | 122.1% | | Equity Underwriting | 1,175 | 1,394 | (219) | -15.7% | | **Total** | **7,056** | **4,042** | **3,014** | **74.6%** | [Investment Management](index=10&type=section&id=Investment%20Management) Investment Management segment revenue and net investment loss grew **80.8% to RMB 237 million**, driven by a **1,356.5% surge** in realized carried interest income to **RMB 147 million**, resulting in a **251.7% increase** in operating profit to **RMB 139 million** Investment Management Segment Revenue, Expenses and Profit (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Management Fees | 107,758 | 154,704 | (46,946) | -30.3% | | Realized Carried Interest Income | 147,208 | 10,107 | 137,101 | 1,356.5% | | **Segment Revenue** | **254,966** | **164,811** | **90,155** | **54.7%** | | Net Investment Loss | (17,502) | (33,445) | 15,943 | -47.7% | | **Segment Revenue and Net Investment Loss** | **237,464** | **131,366** | **106,098** | **80.8%** | | Carried Interest Provision for Management Team and Other Parties | (86,979) | (7,059) | (79,920) | 1,132.2% | | Reversal of Impairment Loss under Expected Credit Loss Model | 56,125 | (4,280) | 60,405 | Not meaningful | | **Segment Operating Profit** | **139,018** | **39,531** | **99,487** | **251.7%** | | **Segment Operating Profit Margin** | **58.5%** | **30.1%** | | | Changes in Investments in Self-Managed and Third-Party Private Equity Funds (For the six months ended June 30) | Indicator | Investments in Self-Managed Funds (RMB thousands) | Investments in Third-Party Funds (RMB thousands) | | :--- | :--- | :--- | | Balance as at December 31, 2024 | 1,048,778 | 604,134 | | Capital Injected | 48,724 | 9,814 | | Distributions | (65,135) | (3,988) | | Changes in Value | 2,561 | (38,997) | | Impact of Exchange Rate Changes | (1,815) | (1,742) | | **Balance as at June 30, 2025** | **1,033,113** | **569,221** | - As of June 30, 2025, the internal rates of return for investments in self-managed private equity funds and third-party private equity funds were **17.0%** and **14.1%**, respectively[29](index=29&type=chunk) Investment Management Segment Operating Data (As of June 30, 2025) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Committed Capital | 35,174 | 36,118 | | Capital Invested | 30,088 | 30,131 | | Fair Value of Investments | 52,909 | 53,247 | | AUM Generating Management Fees | 12,167 | 13,493 | | Assets Under Management (AUM) | 29,099 | 31,974 | Private Equity Fund Performance Information (As of June 30, 2025) | Fund Type | Committed Capital (RMB millions) | Capital Invested (RMB millions) | Realized Investment Fair Value (RMB millions) | Unrealized Investment Fair Value (RMB millions) | Total Return Multiple on Invested Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Main Funds | 28,956 | 8,760 | 20,541 | 19,835 | 1.8 | | Specialized Funds | 6,218 | 3,556 | 8,431 | 4,102 | 1.7 | | **Total** | **35,174** | **12,316** | **28,972** | **23,937** | **1.8** | [China Renaissance Securities](index=14&type=section&id=China%20Renaissance%20Securities) China Renaissance Securities segment revenue and net investment income grew **24.5% to RMB 128.8 million**, driven by strong growth in sales, trading, brokerage, and advisory fees, with operating loss significantly narrowing **59.7% to RMB 17.126 million** China Renaissance Securities Segment Revenue, Expenses and Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Advisory and Underwriting Services | 21,203 | 10,988 | 10,215 | 93.0% | | Sales, Trading and Brokerage | 57,830 | 27,505 | 30,325 | 110.3% | | Interest Income | 4,606 | 4,137 | 469 | 11.3% | | **Segment Revenue** | **83,639** | **42,630** | **41,009** | **96.2%** | | Net Investment Income | 45,171 | 60,836 | (15,665) | -25.7% | | **Segment Revenue and Net Investment Income** | **128,810** | **103,466** | **25,344** | **24.5%** | | **Segment Operating Expenses** | **(145,936)** | **(145,960)** | **24** | **—** | | **Segment Operating Loss** | **(17,126)** | **(42,494)** | **25,368** | **-59.7%** | - China Renaissance Securities' Duoduo Gold App saw cumulative registered users and cumulative opened accounts increase by **26%** and **35%**, respectively, compared to the end of 2024[14](index=14&type=chunk) [Other Businesses](index=15&type=section&id=Other%20Businesses) The Other segment, comprising wealth management and proprietary investment, saw total revenue and net investment income decrease **23.3% to RMB 20.815 million**, with operating loss narrowing **30.4% to RMB 16.163 million** due to reduced operating expenses Other Segment Revenue, Expenses and Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Segment Revenue | 17,219 | 23,910 | (6,691) | -28.0% | | Net Investment Income | 3,596 | 3,215 | 381 | 11.9% | | **Segment Revenue and Net Investment Income** | **20,815** | **27,125** | **(6,310)** | **-23.3%** | | **Segment Operating Expenses** | **(36,978)** | **(50,350)** | **13,372** | **-26.6%** | | **Segment Operating Loss** | **(16,163)** | **(23,225)** | **7,062** | **-30.4%** | [Consolidated Operating Results](index=16&type=section&id=Consolidated%20Operating%20Results) [Total Revenue and Net Investment Income](index=16&type=section&id=Total%20Revenue%20and%20Net%20Investment%20Income) Group total revenue and net investment income increased **26.9% to RMB 456.4 million**, driven by a **1,356.5% surge** in realized carried interest income and **9.0% growth** in transaction and advisory fees, despite declines in management and interest income Revenue and Net Investment Income Details (For the six months ended June 30) | Type | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Transaction and Advisory Fees | 148,351 | 136,063 | 12,288 | 9.0% | | Management Fees | 108,218 | 159,859 | (51,641) | -32.3% | | Interest Income | 21,365 | 22,892 | (1,527) | -6.7% | | Realized Carried Interest Income | 147,208 | 10,107 | 137,101 | 1,356.5% | | **Total Revenue** | **425,142** | **328,921** | **96,221** | **29.3%** | | Net Investment Income | 31,265 | 30,606 | 659 | 2.2% | | **Total Revenue and Net Investment Income** | **456,407** | **359,527** | **96,880** | **26.9%** | [Total Operating Expenses](index=17&type=section&id=Total%20Operating%20Expenses) Total operating expenses decreased **14.9% to RMB 380.6 million**, driven by lower staff costs, financing costs, and expected credit loss reversals, though carried interest provisions for management teams significantly increased - Staff costs and benefits decreased by **27.4% to RMB 204.9 million** year-on-year, with share-based payment expenses decreasing by **50.4%**[52](index=52&type=chunk) - Financing costs decreased by **38.9% to RMB 4.703 million** year-on-year[52](index=52&type=chunk) - Carried interest provision for management teams and other parties significantly increased year-on-year to **RMB 87 million**, consistent with the increase in carried interest income[53](index=53&type=chunk) - Reversal of impairment loss under the expected credit loss model was **RMB 56.109 million**, compared to an impairment loss of RMB 5.899 million in the prior year period[52](index=52&type=chunk)[19](index=19&type=chunk) [Operating Profit/Loss](index=17&type=section&id=Operating%20Profit%2FLoss) The Group achieved an operating profit of **RMB 75.83 million**, reversing an operating loss of **RMB 87.736 million** from the prior year period - Operating profit turned from a loss of **RMB 87.736 million** in the prior year period to a profit of **RMB 75.83 million** in the current period[54](index=54&type=chunk) [Other Financial Items](index=17&type=section&id=Other%20Financial%20Items) Other gains significantly increased to **RMB 13.035 million**, mainly from government grants and exchange gains, while investment income from incidental investments decreased and share of associates' results was zero - Other gains increased from **RMB 0.519 million** in the prior year period to **RMB 13.035 million** in the current period, primarily from government grants and exchange gains[55](index=55&type=chunk) - Investment income from certain incidental and ancillary investments decreased from **RMB 13.117 million** in the prior year period to **RMB 9.148 million** in the current period[56](index=56&type=chunk) - Share of profit of associates decreased from **RMB 0.481 million** in the prior year period to **zero** in the current period[57](index=57&type=chunk) [Profit/Loss Before Tax and Income Tax](index=18&type=section&id=Profit%2FLoss%20Before%20Tax%20and%20Income%20Tax) The Group achieved a profit before tax of **RMB 98.013 million**, reversing a prior-year loss, with income tax expense significantly increasing due to higher taxable income - Profit before tax turned from a loss of **RMB 73.619 million** in the prior year period to a profit of **RMB 98.013 million** in the current period[59](index=59&type=chunk) - Income tax expense increased from **RMB 12.348 million** in the prior year period to **RMB 31.991 million** in the current period, primarily due to increased taxable income[60](index=60&type=chunk) [Profit/Loss for the Period and Earnings Per Share](index=19&type=section&id=Profit%2FLoss%20for%20the%20Period%20and%20Earnings%20Per%20Share) Group profit for the period was **RMB 66.022 million**, with profit attributable to owners at **RMB 64.984 million**, successfully reversing prior-year losses - Profit for the period turned from a loss of **RMB 85.967 million** in the prior year period to a profit of **RMB 66.022 million** in the current period[61](index=61&type=chunk) - Profit for the period attributable to owners of the company turned from a loss of **RMB 73.822 million** in the prior year period to a profit of **RMB 64.984 million** in the current period[61](index=61&type=chunk) [Adjusted Net Loss Attributable to Owners of the Company](index=19&type=section&id=Adjusted%20Net%20Loss%20Attributable%20to%20Owners%20of%20the%20Company_2) Adjusted net loss attributable to owners of the company (including unrealized net carried interest) significantly narrowed by **68.6% to RMB 37 million** for the six months ended June 30, 2025 - Adjusted net loss attributable to owners of the company (including unrealized net carried interest) narrowed from **RMB 117.9 million** in the prior year period to **RMB 37 million** in the current period[62](index=62&type=chunk) [Financial Position and Capital Management](index=19&type=section&id=Financial%20Position%20and%20Capital%20Management) [Off-Balance Sheet Commitments and Arrangements](index=19&type=section&id=Off-Balance%20Sheet%20Commitments%20and%20Arrangements) As of June 30, 2025, the Group had not entered into any off-balance sheet transactions - As of June 30, 2025, the Group had not entered into any off-balance sheet transactions[63](index=63&type=chunk) [Capital Structure and Liquidity](index=19&type=section&id=Capital%20Structure%20and%20Liquidity) As of June 30, 2025, the Group had no outstanding bank borrowings, holding **RMB 2.2329 billion** in cash and equivalents, and **RMB 2.2457 billion** in highly liquid financial assets, with the asset-liability ratio decreasing to **10.0%** - As of June 30, 2025, the Group had no outstanding bank borrowings[64](index=64&type=chunk) - As of June 30, 2025, the Group held a total of **RMB 2.2329 billion** in cash and cash equivalents, time deposits, and highly liquid cash management products[64](index=64&type=chunk) - As of June 30, 2025, the Group also held **RMB 2.2457 billion** in highly liquid financial assets, primarily listed company bonds[64](index=64&type=chunk) Asset-Liability Ratio | Date | Asset-Liability Ratio | | :--- | :--- | | June 30, 2025 | 10.0% | | December 31, 2024 | 12.2% | [Major Investment Activities](index=20&type=section&id=Major%20Investment%20Activities) The Group's major investment activities totaled **RMB 2.9498 billion** in fair value as of June 30, 2025, a **1.1% decrease** from 2024 year-end, encompassing diverse private equity, strategic minority, and digital asset investments Fair Value of Major Investment Activities (As of June 30, 2025) | Investment Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Investments in Self-Managed Private Equity Funds | 1,033,113 | 1,048,778 | (15,665) | -1.5% | | Investments in Third-Party Private Equity Funds | 569,221 | 604,134 | (34,913) | -5.8% | | Strategic Minority Equity Investments - Preferred Shares | 1,039,564 | 1,272,048 | (232,484) | -18.3% | | Strategic Minority Equity Investments - Non-Associate Holdings | 56,132 | 56,155 | (23) | -0.04% | | Strategic Minority Equity Investments - Listed Company Investments | 173,029 | — | 173,029 | New | | Digital Assets | 78,728 | — | 78,728 | New | | **Total** | **2,949,787** | **2,981,115** | **(31,328)** | **-1.1%** | [Future Major Investments and Capital Asset Plans](index=20&type=section&id=Future%20Major%20Investments%20and%20Capital%20Asset%20Plans) The Board approved a **USD 100 million budget** for Web3.0 business development and cryptocurrency asset investments over the next two years - The Board resolved to enter the Web3.0 and cryptocurrency asset sectors while solidifying existing businesses, approving a total budget of **USD 100 million** for the Group's Web3.0 business development and cryptocurrency asset investments over the next two years[68](index=68&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries and Affiliates](index=20&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Affiliates) The Group had no significant acquisitions or disposals of subsidiaries and affiliates during the reporting period - The Group had no significant acquisitions or disposals of subsidiaries and affiliates for the six months ended June 30, 2025[70](index=70&type=chunk) [Corporate Governance and Other Information](index=20&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **441 full-time employees**, with over **86%** being advisory and investment professionals, and total remuneration expenses decreased **27.4%**, reflecting cost optimization Number of Employees by Function (As of June 30, 2025) | Function | Number of Employees | Percentage | | :--- | :--- | :--- | | Investment Banking | 80 | 18% | | Investment Management | 37 | 8% | | China Renaissance Securities | 258 | 59% | | Others | 3 | 1% | | Group Middle and Back Office | 63 | 14% | | **Total** | **441** | **100%** | - Total remuneration expenses (including share-based payment expenses) for the six months ended June 30, 2025, were **RMB 204.9 million**, a **27.4% decrease** compared to the six months ended June 30, 2024[74](index=74&type=chunk) [Risk Management](index=21&type=section&id=Risk%20Management) The Group primarily operates in China with RMB-settled transactions, managing foreign exchange risk through hedging, and had not pledged any assets as of the reporting period - As of June 30, 2025, the Group had not hedged any financial instruments or used any financial instruments for hedging purposes[75](index=75&type=chunk) - As of June 30, 2025, the Group had not pledged any assets[76](index=76&type=chunk) [Interim Dividend Policy](index=22&type=section&id=Interim%20Dividend%20Policy) The Board recommended no interim dividend for the six months ended June 30, 2025, noting that dividend payments are discretionary and subject to various financial factors - The Board recommended not to declare an interim dividend for the six months ended June 30, 2025[78](index=78&type=chunk) - Dividend payments will depend on factors including the company's liquidity position, cash flow, overall financial condition, capital adequacy, and funding requirements[78](index=78&type=chunk) [Corporate Governance](index=23&type=section&id=Corporate%20Governance) The company maintains high corporate governance standards, complying with all applicable Stock Exchange codes, with directors and employees adhering to securities transaction standards, and no listed securities repurchased or traded during the period - For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules of the Stock Exchange[81](index=81&type=chunk) - Following specific inquiries with all directors and relevant employees, they confirmed compliance with the Model Code for Securities Transactions for the six months ended June 30, 2025[83](index=83&type=chunk) - For the six months ended June 30, 2025, neither the company nor any member of the Group purchased, sold, or redeemed any of the company's listed securities[84](index=84&type=chunk) [Audit Committee and Other Board Committees](index=24&type=section&id=Audit%20Committee%20and%20Other%20Board%20Committees) The Audit Committee reviewed the Group's unaudited interim results and accounting policies, while the company also maintains Nomination, Remuneration, Executive, and ESG Committees - The Audit Committee, comprising four independent non-executive directors, reviewed the Group's unaudited interim results for the six months ended June 30, 2025[85](index=85&type=chunk) - In addition to the Audit Committee, the company has also established a Nomination Committee, Remuneration Committee, Executive Committee, and Environmental, Social and Governance Committee[86](index=86&type=chunk) [Events After Reporting Period](index=24&type=section&id=Events%20After%20Reporting%20Period) Post-reporting period, the company entered a strategic cooperation memorandum with YZILabs Management Ltd on August 22, 2025, to support BNB and BNB Chain ecosystem applications and explore related financial opportunities - On August 22, 2025, the company entered into a strategic cooperation memorandum with YZILabs Management Ltd to establish a strategic cooperation framework to support BNB and BNB Chain ecosystem applications and build a mutually empowering partnership[87](index=87&type=chunk) [Condensed Consolidated Financial Statements](index=25&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=25&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported a profit for the period of **RMB 66.022 million**, with **RMB 64.984 million** attributable to owners and basic EPS of **RMB 0.13**, on total revenue and net investment income of **RMB 456.4 million** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Transaction and Advisory Fees | 148,351 | 136,063 | | Management Fees | 108,218 | 159,859 | | Interest Income | 21,365 | 22,892 | | Carried Interest Income | 147,208 | 10,107 | | **Total Revenue** | **425,142** | **328,921** | | Net Investment Income | 31,265 | 30,606 | | **Total Revenue and Net Investment Income** | **456,407** | **359,527** | | Staff Costs and Benefits | (204,938) | (282,097) | | Carried Interest Provision for Management Team and Other Parties | (86,979) | (7,059) | | Operating Profit/(Loss) | 75,830 | (87,736) | | Profit/(Loss) Before Tax | 98,013 | (73,619) | | Income Tax Expense | (31,991) | (12,348) | | **Profit/(Loss) for the Period** | **66,022** | **(85,967)** | | Profit/(Loss) for the Period Attributable to Owners of the Company | 64,984 | (73,822) | | Basic Earnings/(Loss) Per Share | RMB 0.13 | RMB (0.15) | [Condensed Consolidated Statement of Financial Position](index=27&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, Group total assets decreased to **RMB 9.4658 billion** from **RMB 10.5606 billion** at 2024 year-end, while net current assets increased to **RMB 3.7993 billion** Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 3,377,279 | 3,570,799 | | Current Assets | 6,088,497 | 6,989,780 | | **Total Assets** | **9,465,776** | **10,560,579** | | Current Liabilities | 2,289,218 | 3,451,562 | | Non-current Liabilities | 56,837 | 60,265 | | **Net Assets** | **7,119,721** | **7,048,752** | | Equity Attributable to Owners of the Company | 6,112,994 | 6,043,575 | | Non-controlling Interests | 1,006,727 | 1,005,177 | - Net current assets increased from **RMB 3.5382 billion** as of December 31, 2024, to **RMB 3.7993 billion** as of June 30, 2025[91](index=91&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=29&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation](index=29&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in RMB, adhering to IAS 34 "Interim Financial Reporting" and Appendix 16 of the HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[92](index=92&type=chunk) - The condensed consolidated financial statements are presented in **RMB**, and all amounts are rounded to the nearest thousand unless otherwise stated[92](index=92&type=chunk) [Significant Accounting Policies](index=29&type=section&id=Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with certain financial instruments and digital assets measured at fair value, and new IFRS adoptions had no significant impact - Digital assets, primarily for routine business trading, are measured at fair value less costs to sell, with fair value changes recognized in profit or loss during the period of change[94](index=94&type=chunk)[95](index=95&type=chunk) - During this interim period, the Group adopted all new and amended International Financial Reporting Standards relevant to its operations, but these did not result in significant changes to the Group's accounting policies, presentation of condensed consolidated financial statements, or reported amounts for the current and prior periods[96](index=96&type=chunk) [Revenue and Segment Information](index=30&type=section&id=Revenue%20and%20Segment%20Information) The Group's business is segmented into Investment Banking, Investment Management, China Renaissance Securities, and Others, with Investment Management's performance including unrealized carried interest as a key value creation metric - The Group's reportable segments include Investment Banking, Investment Management, China Renaissance Securities, and Others[98](index=98&type=chunk) Revenue and Results by Reportable Segment (For the six months ended June 30, 2025) | Indicator | Investment Banking (RMB thousands) | Investment Management (RMB thousands) | China Renaissance Securities (RMB thousands) | Others (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Transaction and Advisory Fees | 69,318 | — | 79,033 | — | 148,351 | | Management Fees | — | 107,758 | — | 460 | 108,218 | | Interest Income | — | — | 4,606 | 16,759 | 21,365 | | Carried Interest Income | — | 147,208 | — | — | 147,208 | | **Total Revenue** | **69,318** | **254,966** | **83,639** | **17,219** | **425,142** | | Net Investment (Loss)/Income | — | (17,502) | 45,171 | 3,596 | 31,265 | | **Total Revenue and Net Investment Income** | **69,318** | **237,464** | **128,810** | **20,815** | **456,407** | | Operating (Loss)/Profit | (29,899) | 139,018 | (17,126) | (16,163) | 75,830 | - Carried interest income is a form of variable consideration in investment management service contracts with clients, earned based on fund performance and realized after reaching a minimum income threshold[101](index=101&type=chunk) - The Investment Management segment's performance includes unrealized carried interest income (calculated on a liquidation basis) as a key metric for measuring value creation[102](index=102&type=chunk) Geographical Distribution of Revenue and Non-current Assets (As of June 30, 2025) | Region | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Non-current Assets (RMB thousands) | 2024 Non-current Assets (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 311,833 | 263,203 | 100,048 | 141,873 | | Hong Kong | 34,093 | 59,597 | 19,011 | 6,940 | | United States | 79,216 | 6,121 | 1,096 | 1,626 | | **Total** | **425,142** | **328,921** | **120,155** | **150,439** | [Net Investment Income](index=35&type=section&id=Net%20Investment%20Income) Net investment income for the six months ended June 30, 2025, was **RMB 31.265 million**, mainly from fair value gains on financial assets, partially offset by losses on financial bonds and unlisted investment funds Net Investment Income Details (For the six months ended June 30) | Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Realized and Unrealized Net Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss ("FVTPL") | | | | — Wealth management related products | 3,681 | (6,076) | | — Asset management schemes | 43,788 | 79,192 | | — Financial bonds | (6,215) | (17,307) | | — Unlisted investment funds | (13,396) | (1,102) | | Realized and Unrealized Net Gains on Digital Assets at Fair Value | 13 | — | | Dividend Income | 805 | 556 | | **Total** | **31,265** | **30,606** | [Other Income, Gains or Losses](index=36&type=section&id=Other%20Income%2C%20Gains%20or%20Losses_2) Total other income, gains or losses for the six months ended June 30, 2025, amounted to **RMB 13.035 million**, mainly from government grants (**RMB 8.557 million**) and exchange gains (**RMB 1.25 million**) Other Income, Gains or Losses Details (For the six months ended June 30) | Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants | 8,557 | 3,520 | | Net Exchange Gains/(Losses) | 1,250 | (1,295) | | Others | 3,228 | (1,706) | | **Total** | **13,035** | **519** | [Investment Income from Certain Incidental and Ancillary Investments](index=36&type=section&id=Investment%20Income%20from%20Certain%20Incidental%20and%20Ancillary%20Investments_2) Investment income from incidental and ancillary investments was **RMB 9.148 million**, primarily from unlisted debt securities, partially offset by losses from listed equity securities Investment Income from Certain Incidental and Ancillary Investments (For the six months ended June 30) | Investment Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Unlisted Debt Securities Investments | 15,928 | 13,117 | | Listed Equity Securities Investments | (6,780) | — | | **Total** | **9,148** | **13,117** | [Income Tax Expense](index=37&type=section&id=Income%20Tax%20Expense_2) Income tax expense for the six months ended June 30, 2025, was **RMB 31.991 million**, a significant increase driven by higher taxable income Income Tax Expense Details (For the six months ended June 30) | Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Tax - Mainland China | 26,748 | 23,817 | | Deferred Tax | 5,243 | (11,469) | | **Total Income Tax Expense** | **31,991** | **12,348** | [Profit/Loss for the Period](index=37&type=section&id=Profit%2FLoss%20for%20the%20Period_2) Profit for the period was **RMB 66.022 million**, after accounting for depreciation, amortization, and staff costs, including share-based payment expenses Major Deductions from Profit/Loss for the Period (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of Property and Equipment | 15,966 | 28,222 | | Amortization of Intangible Assets | 12,094 | 14,009 | | Staff Costs - Salaries, Bonuses and Other Allowances | 170,795 | 216,774 | | Staff Costs - Equity-settled Share-based Payment Expenses | 14,037 | 28,308 | [Dividends](index=37&type=section&id=Dividends_2) The company did not declare or pay any dividends for the six months ended June 30, 2025, or 2024 - For the six months ended June 30, 2025, and 2024, the company did not declare or pay any dividends[114](index=114&type=chunk) [Earnings/Loss Per Share](index=38&type=section&id=Earnings%2FLoss%20Per%20Share_2) Basic earnings per share attributable to owners was **RMB 0.13**, and diluted earnings per share was **RMB 0.12**, both turning profitable from prior-year losses Earnings/Loss Per Share (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings/(Loss) Per Share | 0.13 | (0.15) | | Diluted Earnings/(Loss) Per Share | 0.12 | (0.15) | [Investments in Associates](index=38&type=section&id=Investments%20in%20Associates) As of June 30, 2025, the Group's investments in associates (primarily fund investments) had a fair value of **RMB 1.0357 billion**, a slight decrease from 2024 year-end Investments in Associates (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Fund Investments | 787,047 | 809,162 | | Fair Value Changes of Funds | 179,673 | 177,917 | | Exchange Adjustments | 68,994 | 70,731 | | **Total** | **1,035,714** | **1,057,810** | [Investments in Joint Ventures](index=39&type=section&id=Investments%20in%20Joint%20Ventures) As of June 30, 2025, the Group's investments in joint ventures totaled **RMB 41.167 million**, a slight decrease from 2024 year-end Investments in Joint Ventures (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Unlisted Investments in Joint Ventures | 100,000 | 100,000 | | Less: Impairment Loss | (58,819) | (58,819) | | Exchange Adjustments | (14) | 622 | | **Total** | **41,167** | **41,803** | [Financial Assets at Fair Value Through Profit or Loss](index=40&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Total financial assets at fair value through profit or loss amounted to **RMB 5.1549 billion**, comprising **RMB 2.9349 billion** in current assets and **RMB 2.2199 billion** in non-current assets, including listed financial bonds and various unlisted investments Financial Assets at Fair Value Through Profit or Loss (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Current Assets** | | | | Unlisted Cash Management Products | 447,998 | 290,130 | | Money Market Funds | 241,255 | 264,412 | | Listed Financial Bonds | 2,209,401 | 2,453,954 | | Trust Products | 36,270 | — | | **Subtotal** | **2,934,924** | **3,008,496** | | **Non-current Assets** | | | | Unlisted Investment Funds | 569,221 | 604,134 | | Unlisted Debt Securities Investments | 1,039,564 | 1,272,048 | | Unlisted Equity Securities Investments | 56,132 | 56,155 | | Listed Equity Securities Investments | 173,029 | — | | Options to Acquire Non-controlling Interests | 282,032 | 282,032 | | **Subtotal** | **2,119,978** | **2,214,369** | | **Total** | **5,054,902** | **5,222,865** | [Financial Assets at Fair Value Through Other Comprehensive Income](index=41&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of June 30, 2025, the Group had no financial assets at fair value through other comprehensive income, a category that held **RMB 48.688 million** in listed financial bonds at 2024 year-end Financial Assets at Fair Value Through Other Comprehensive Income (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Listed Financial Bonds | — | 48,688 | [Loans to Third Parties](index=42&type=section&id=Loans%20to%20Third%20Parties) Net loans to third parties totaled **RMB 100.9 million**, primarily a loan to Worb Medical Holdings Limited, which was settled post-reporting period Loans to Third Parties (As of June 30, 2025) | Borrower | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Worb Medical Holdings Limited ("Worb") | 177,325 | 212,978 | | Less: Provision for Impairment Loss | (76,389) | (144,144) | | **Net Amount** | **100,936** | **68,834** | - The loan to Worb Medical Holdings Limited was settled after the six months ended June 30, 2025[125](index=125&type=chunk) [Digital Assets](index=42&type=section&id=Digital%20Assets) As of June 30, 2025, the Group held **RMB 78.728 million** in digital assets, mainly stablecoins, deposited on third-party trading platforms Digital Assets (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Digital Assets | 78,728 | — | - Most of the Group's digital assets are stablecoins, which are asset-backed, with a fair value of approximately **USD 1 per unit**[128](index=128&type=chunk) [Trade and Other Receivables](index=43&type=section&id=Trade%20and%20Other%20Receivables) Net trade and other receivables decreased to **RMB 488.9 million** from **RMB 759.8 million** at 2024 year-end, primarily comprising receivables from unsettled transactions and refundable deposits Trade and Other Receivables (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 39,347 | 55,424 | | Receivables from Unsettled Transactions | 194,518 | 380,416 | | Refundable Deposits | 117,001 | 187,765 | | Restricted Funds | 78,458 | 78,768 | | Employee Loans | 32,442 | 27,348 | | **Total (net of impairment)** | **488,859** | **759,806** | [Financial Assets Purchased Under Resale Agreements](index=44&type=section&id=Financial%20Assets%20Purchased%20Under%20Resale%20Agreements) As of June 30, 2025, the Group had no financial assets purchased under resale agreements, a category that held **RMB 19 million** in debt securities at 2024 year-end Financial Assets Purchased Under Resale Agreements (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Debt Securities | — | 19,000 | [Impairment Assessment of Financial Assets Under Expected Credit Loss Model](index=44&type=section&id=Impairment%20Assessment%20of%20Financial%20Assets%20Under%20Expected%20Credit%20Loss%20Model) The Group's impairment assessment of financial assets under the expected credit loss model resulted in a **RMB 56.109 million reversal** of impairment loss, mainly from loans to third parties Reversal/Recognition of Impairment Loss (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loans to Third Parties | (57,297) | — | | Trade and Other Receivables | 178 | 920 | | Amounts Due from Related Parties | 1,018 | 4,981 | | **Total** | **(56,109)** | **5,899** | [Trade and Other Payables](index=45&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased to **RMB 511.5 million** from **RMB 773.2 million** at 2024 year-end, mainly comprising payables for unsettled transactions and carried interest to management teams Trade and Other Payables (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, Bonuses and Other Benefits Payable | 37,290 | 38,183 | | Payables for Unsettled Transactions | 266,232 | 499,537 | | Carried Interest to Management Team and Other Parties | 110,218 | 113,801 | | **Total** | **511,504** | **773,192** | [Financial Assets Sold Under Repurchase Agreements](index=45&type=section&id=Financial%20Assets%20Sold%20Under%20Repurchase%20Agreements) Financial assets sold under repurchase agreements decreased to **RMB 369.6 million** from **RMB 594.1 million** at 2024 year-end, representing liabilities from securities sales with repurchase agreements Financial Assets Sold Under Repurchase Agreements (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Debt Securities | 369,600 | 592,521 | | Interest Payable | 49 | 1,574 | | **Total** | **369,649** | **594,095** | [Structured Notes](index=46&type=section&id=Structured%20Notes) As of June 30, 2025, the Group held **RMB 100.4 million** in structured notes, with annual interest rates ranging from **2.50% to 2.70%** Structured Notes (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Structured Notes | 100,396 | — | [Share Capital](index=47&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital comprised **572,197,776 shares** with a par value of **USD 0.000025 per share**, totaling **RMB 93.834 thousand** Share Capital Information (As of June 30, 2025) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Issued and Fully Paid Shares | 572,197,776 | 572,197,776 | | Par Value Per Share | USD 0.000025 | USD 0.000025 | | Share Capital (RMB thousands) | 94 | 94 | [Contingent Liabilities](index=47&type=section&id=Contingent%20Liabilities_2) Mr. Bao Fan, former Chairman, is cooperating with Chinese authorities' investigations, with **RMB 78.458 million** in restricted funds paid by the Group, and no provision made due to event uncertainty - Mr. Bao Fan, the company's former Chairman of the Board, is cooperating with investigations by relevant Chinese authorities[139](index=139&type=chunk) - The Group has paid approximately **RMB 78.458 million** in restricted funds related to this matter[139](index=139&type=chunk) - Due to the uncertainty of these events, no provision has been made for them for the six months ended June 30, 2025[140](index=140&type=chunk)