[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Financial Summary](index=1&type=section&id=Financial%20Summary) The Group announced unaudited interim results for the six months ended June 30, 2025, with revenue increasing by **16.9%** year-on-year, gross profit significantly up by **50.1%**, but profit for the period decreased by **7.6%**, while adjusted net profit achieved a substantial growth of **97.7%** Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,063.5 | 2,620.6 | 16.9% | | Gross Profit | 666.9 | 444.3 | 50.1% | | Profit for the Period | 116.2 | 125.8 | (7.6%) | | Adjusted Net Profit | 294.3 | 148.9 | 97.7% | - Adjusted net profit, a non-IFRS measure, provides investors with additional information to better assess overall operating performance[3](index=3&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company saw revenue growth and significant gross profit improvement, but a substantial increase in fair value losses on financial assets led to a year-on-year decline in profit for the period and earnings per share Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,063,455 | 2,620,565 | | Cost of Sales | (2,396,584) | (2,176,281) | | Gross Profit | 666,871 | 444,284 | | Operating Profit | 310,188 | 164,025 | | Fair Value Changes of Financial Assets at FVTPL | (182,111) | (23,109) | | Profit Before Tax | 121,931 | 132,870 | | Profit and Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | 116,226 | 125,761 | | Earnings Per Share (Basic and Diluted) | 0.11 | 0.12 | - Fair value changes of financial assets at fair value through profit or loss increased significantly from **RMB 23,109 thousand** in 2024 to **RMB 182,111 thousand** in 2025, primarily causing the decline in profit before tax and profit for the period[4](index=4&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly decreased, mainly due to a reduction in financial assets at fair value through profit or loss, while current liabilities significantly declined, primarily from substantial bank loan repayments, maintaining stable net current assets and net assets Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,791,446 | 1,930,960 | | Financial Assets at FVTPL | 440,727 | 615,055 | | Current Assets | 2,446,109 | 2,682,858 | | Inventories | 1,070,727 | 1,360,169 | | Cash and Bank Balances | 786,721 | 712,972 | | Current Liabilities | 680,249 | 980,303 | | Bank Loans | 200,074 | 645,475 | | Net Current Assets | 1,765,860 | 1,702,555 | | Net Assets | 3,495,819 | 3,554,770 | - Bank loans significantly decreased from **RMB 645,475 thousand** on December 31, 2024, to **RMB 200,074 thousand** on June 30, 2025, substantially improving the current liability position[5](index=5&type=chunk) [Notes to Interim Financial Information](index=5&type=section&id=Notes%20to%20Interim%20Financial%20Information) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The interim financial information is prepared in accordance with the Listing Rules of The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 'Interim Financial Reporting', authorized for issue on August 28, 2025, and adopts the same accounting policies as the 2024 annual financial statements, except for anticipated changes in accounting policies - The interim financial information complies with the Listing Rules of the Hong Kong Stock Exchange and International Accounting Standard 34 requirements[7](index=7&type=chunk) - Except for anticipated changes in accounting policies, the same accounting policies as the 2024 annual financial statements are adopted[7](index=7&type=chunk) [Changes in Accounting Policies](index=5&type=section&id=Changes%20in%20Accounting%20Policies) The Group applied IAS 21 (Amendment) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability', which had no material impact on the interim financial information due to the absence of relevant transactions, and no other new or amended standards not yet effective were applied during this accounting period - IAS 21 (Amendment) has been applied, but it has no material impact on the interim financial information[8](index=8&type=chunk) - No other new or amended standards not yet effective have been applied during this accounting period[9](index=9&type=chunk) [Revenue and Segment Reporting](index=6&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's primary business involves the production and sale of staple kitchen foods, with all revenue recognized within the reporting period, segmented into four reportable product categories: rice, corn, miscellaneous grains, beans and other products, and dried goods and other products, with comparative segment information for 2024 restated - The Group's main business is the production and sale of staple kitchen foods, with all revenue recognized at a point in time within the reporting period[10](index=10&type=chunk) - The Group has presented four reportable segments: rice products, corn products, miscellaneous grains, beans and other products, and dried goods and other products[11](index=11&type=chunk)[13](index=13&type=chunk) - Corn product revenue has achieved significant growth since 2024, expected to contribute to stable cash flow generation and diversification of product matrix and revenue sources[12](index=12&type=chunk) [Segment Results](index=7&type=section&id=Segment%20Results) For the six months ended June 30, 2025, rice product revenue and gross profit both significantly increased, while corn product revenue and gross profit decreased, with miscellaneous grains, beans and other products, and dried goods and other products all showing growth in revenue and gross profit Segment Revenue and Gross Profit (RMB thousand) | Segment | 2025 Revenue | 2025 Gross Profit | 2024 Revenue | 2024 Gross Profit | | :--- | :--- | :--- | :--- | :--- | | Rice Products | 2,066,467 | 435,553 | 1,707,209 | 211,083 | | Corn Products | 433,069 | 156,635 | 514,221 | 171,142 | | Miscellaneous Grains, Beans and Other Products | 274,276 | 52,849 | 212,050 | 46,164 | | Dried Goods and Other Products | 289,643 | 21,834 | 187,085 | 15,895 | | **Total** | **3,063,455** | **666,871** | **2,620,565** | **444,284** | - Rice product revenue increased by **21.0%** year-on-year, with gross profit increasing by **106.3%** year-on-year[15](index=15&type=chunk) - Corn product revenue decreased by **15.8%** year-on-year, with gross profit decreasing by **8.5%** year-on-year[15](index=15&type=chunk) [Geographical Information](index=7&type=section&id=Geographical%20Information) All of the Group's revenue is derived from customers within mainland China, and it does not have significant assets or operations outside China, thus no segment analysis based on customer and asset geographical location is presented - All of the Group's revenue is derived from its customers in China[16](index=16&type=chunk) - The Group does not have significant assets or operations outside China[16](index=16&type=chunk) [Profit Before Tax](index=8&type=section&id=Profit%20Before%20Tax) Profit before tax is primarily influenced by finance costs, staff costs, cost of inventories, depreciation, and net loss on disposal of property, plant and equipment, with finance costs decreasing due to reduced bank loan interest, while staff costs and cost of inventories increased [Finance Costs](index=8&type=section&id=Finance%20Costs) The Group's finance costs decreased from **RMB 8,046 thousand** in the prior period of 2024 to **RMB 6,146 thousand** in 2025, mainly due to reduced bank loan interest expenses, though foreign exchange shifted from a gain to a loss Details of Finance Costs (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest expense on bank loans | 5,025 | 13,270 | | Interest on lease liabilities | 865 | 1,444 | | Foreign exchange loss / (gain) | 256 | (6,668) | | **Total** | **6,146** | **8,046** | - Interest expense on bank loans decreased by **62.1%** year-on-year[17](index=17&type=chunk) [Staff Costs](index=8&type=section&id=Staff%20Costs) The Group's staff costs increased from **RMB 153,952 thousand** in the prior period of 2024 to **RMB 164,084 thousand** in 2025, primarily driven by an increase in salaries, wages, and other benefits Details of Staff Costs (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Salaries, wages and other benefits | 153,655 | 144,004 | | Contributions to defined contribution retirement plans | 10,429 | 9,948 | | **Total** | **164,084** | **153,952** | [Other Items](index=8&type=section&id=Other%20Items) Other items primarily include cost of inventories, depreciation, net loss on disposal of property, plant and equipment, and lease expenses, with both cost of inventories and depreciation of owned property, plant and equipment increasing Details of Other Items (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of inventories | 2,396,584 | 2,176,281 | | Depreciation – owned property, plant and equipment | 50,114 | 43,420 | | Depreciation – right-of-use assets | 4,601 | 5,915 | | Net loss on disposal of property, plant and equipment | 555 | 113 | | Lease expenses | 705 | 827 | [Income Tax](index=9&type=section&id=Income%20Tax) The Group's income tax expense decreased from **RMB 7,109 thousand** in the prior period of 2024 to **RMB 5,705 thousand** in 2025, mainly due to a reduction in taxable income, with primary processing of agricultural products qualifying for income tax exemption Income Tax Expense (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax | 5,705 | 7,109 | - Primary processing of agricultural products qualifies for income tax exemption[24](index=24&type=chunk) [Dividends](index=9&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025; however, the company approved a final dividend of **RMB 0.164** per ordinary share for the previous financial year during the interim period, a significant increase from the prior year - The Board does not recommend an interim dividend for the six months ended June 30, 2025[21](index=21&type=chunk) Dividends Payable to Equity Holders of the Company Approved and Attributable to the Previous Financial Year During the Interim Period (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Final dividend for the previous financial year | 175,177 | 33,113 | [Earnings Per Share](index=9&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share decreased to **RMB 0.11** from **RMB 0.12** in the prior period, with diluted earnings per share being the same as basic earnings per share due to the absence of dilutive potential ordinary shares Earnings Per Share (RMB) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings per share | 0.11 | 0.12 | | Diluted earnings per share | 0.11 | 0.12 | - Basic earnings per share is calculated based on profit attributable to equity holders of the Company of **RMB 116,226 thousand** and a weighted average of **1,068,153 thousand** ordinary shares outstanding[23](index=23&type=chunk) [Trade and Other Receivables](index=10&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased to **RMB 559,672 thousand** from December 31, 2024, with trade receivables (net of loss allowance) predominantly within 3 months, indicating a healthy aging structure Trade and Other Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (third parties) | 363,053 | 383,188 | | Less: Loss allowance | (887) | (5,763) | | Bills receivable | 7,989 | 8,789 | | Prepayments | 97,344 | 105,148 | | Recoverable VAT | 59,015 | 82,289 | | Other receivables | 87,708 | 110,317 | | **Total** | **559,672** | **609,717** | Aging Analysis of Trade Receivables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 341,364 | 371,937 | | 4 to 6 months | 19,515 | 4,988 | | 7 to 12 months | 1,174 | 299 | | Over 1 year | 113 | 201 | | **Total** | **362,166** | **377,425** | [Trade and Other Payables](index=11&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly increased to **RMB 434,253 thousand** from December 31, 2024, primarily due to a substantial rise in dividends payable Trade and Other Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 159,781 | 152,677 | | Dividends payable | 175,177 | – | | Staff-related costs payable | 42,510 | 53,724 | | Amounts payable for construction and purchase of property, plant and equipment | 17,827 | 22,654 | | Others | 13,290 | 12,617 | | Financial liabilities measured at amortized cost | 408,585 | 241,672 | | Refund liabilities | 1,494 | 2,213 | | Miscellaneous taxes payable | 24,174 | 9,332 | | **Total** | **434,253** | **253,217** | - Dividends payable increased from **zero** on December 31, 2024, to **RMB 175,177 thousand** on June 30, 2025[27](index=27&type=chunk) - All trade payables are expected to be settled within one year or are repayable on demand[28](index=28&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Macro and Industry Environment](index=13&type=section&id=Macro%20and%20Industry%20Environment) In H1 2025, China's GDP grew by **5.3%** year-on-year, total retail sales of consumer goods increased by **5%**, with final consumption expenditure contributing **52%** to economic growth, while the food industry shows trends towards health, quality, convenience, and brand, with pre-packaged food market share continuously expanding, supported by national policies for whole grain development and rising consumer health awareness driving growth in miscellaneous grains and corn categories - In H1 2025, China's GDP grew by **5.3%** year-on-year, with total retail sales of consumer goods reaching **RMB 24.55 trillion**, a **5%** year-on-year increase[29](index=29&type=chunk) - Final consumption expenditure contributed as much as **52%** to economic growth, becoming the main driver[29](index=29&type=chunk) - Food industry trends indicate consumers shifting from 'eating well' to 'eating healthy', preferring nutritionally balanced, low-fat, and fiber-rich foods; pre-packaged foods continue to gain market share due to stable quality and convenience[29](index=29&type=chunk)[32](index=32&type=chunk) - National policies support the development of the whole grain industry, and rising consumer health awareness drives growth in miscellaneous grains and corn categories[30](index=30&type=chunk) [Future Outlook](index=14&type=section&id=Future%20Outlook) The Group will continue to cultivate its omni-channel ecosystem, strengthen channel management, build a content-centric intelligent marketing ecosystem, continuously understand consumer needs, and timely adjust business layout and product portfolio, while also deeply selecting production areas, focusing on building core capabilities in procurement, production, inspection, and warehousing, and promoting digitalization and system construction to enhance operational efficiency and refined management - Adhere to the mission of 'providing healthy, high-quality, and safe family food for Chinese consumers', aiming to 'build valuable and influential food brands in China'[33](index=33&type=chunk) - Deepen the omni-channel ecosystem, strengthen channel management capabilities, and build a content-centric intelligent marketing ecosystem[33](index=33&type=chunk) - Continuously monitor industry dynamics, adjust business layout and product portfolio, expand new channels and businesses, and create healthy, high-quality star products[33](index=33&type=chunk) - Promote digitalization and system construction to enhance omni-channel operational efficiency and refined management levels[33](index=33&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) In H1 2025, the Group's total revenue reached **RMB 3,063.5 million**, a **16.9%** year-on-year increase, with gross profit growing by **50.1%**, as the company continued to deepen existing categories, expand its product matrix and sales network, strengthen its multi-brand business model, and solidify supply chain management capabilities, maintaining leading sales volumes in core rice and corn categories while actively developing new light, healthy, and low-fat family food products Key Financial Performance for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 3,063.5 | 2,620.6 | 16.9% | | Gross Profit | 666.9 | 444.3 | 50.1% | | Gross Profit Margin | 21.8% | 17.0% | +4.8pp | | Profit Before Tax | 121.9 | 132.9 | (8.3%) | | Net Profit | 116.2 | 125.8 | (7.6%) | | Adjusted Net Profit | 294.3 | 148.9 | 97.7% | | Adjusted Net Profit Margin | 9.6% | 5.7% | +3.9pp | - The company continues to deepen existing categories, expand its multi-category product matrix, broaden its sales network, strengthen its multi-brand business model with distinct focuses, and solidify its supply chain management capabilities[34](index=34&type=chunk) [Our Brands and Products](index=15&type=section&id=Our%20Brands%20and%20Products) The Group owns brands such as 'Shiyuedaotian', 'Chaihuo Dayuan', and 'Fuxiang Renjia', maintaining leading sales volumes in rice and corn categories, and actively responds to consumer trends by launching snack foods like barbecue-flavored and spicy corn, and expanding into light family meal products such as brown rice onigiri and corn paste sachets, aiming to become an expert in family food innovation - Core brands include **Shiyuedaotian**, **Chaihuo Dayuan**, and **Fuxiang Renjia**[36](index=36&type=chunk) - The Shiyuedaotian brand has been recognized as 'China's leading sales volume in Northeast rice for six consecutive years' and 'China's leading sales volume in corn category for two consecutive years'[36](index=36&type=chunk) - Launched snack foods such as barbecue-flavored corn and spicy corn, as well as light family meal products like brown rice onigiri and corn paste sachets, to meet the composite demands for 'health, nutrition, and convenience'[36](index=36&type=chunk)[38](index=38&type=chunk) Revenue Breakdown by Product Category (RMB thousand) | Product Category | 2025 | % of Total Revenue | 2024 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Rice Products | 2,066,467 | 67.4% | 1,707,209 | 65.2% | | Corn Products | 433,069 | 14.1% | 514,221 | 19.6% | | Miscellaneous Grains, Beans and Other Products | 274,276 | 9.0% | 212,050 | 8.1% | | Dried Goods and Other Products | 289,643 | 9.5% | 187,085 | 7.1% | | **Total** | **3,063,455** | **100.0%** | **2,620,565** | **100.0%** | - Rice product revenue increased by **21.0%** year-on-year, mainly due to continuous strategic adjustments to deepen channels, increased sales of mid-to-high-end rice, and a strategic reduction in sales of low-margin rice[41](index=41&type=chunk) - Corn product revenue decreased by **15.8%** year-on-year, mainly because the Group aimed to improve profitability quality and adjusted its marketing investment strategy[41](index=41&type=chunk) [Our Sales Network](index=18&type=section&id=Our%20Sales%20Network) The Group has established extensive sales coverage through online channels (e-commerce platforms, online self-operated stores), modern supermarket channels, direct customers, and a distribution network, with online channels remaining the primary revenue source and significant growth observed in modern supermarket and direct customer revenues Revenue Breakdown by Sales Channel (RMB thousand) | Sales Channel | 2025 | % of Total Revenue | 2024 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Online Channels | 1,836,767 | 60.0% | 1,776,257 | 67.8% | | －E-commerce Platforms | 1,163,282 | 38.0% | 1,095,938 | 41.8% | | －Online Self-operated Stores | 673,485 | 22.0% | 680,319 | 26.0% | | Modern Supermarket Channels | 495,584 | 16.2% | 393,223 | 15.0% | | Direct Customers | 563,209 | 18.4% | 321,654 | 12.3% | | Distribution Network | 167,895 | 5.4% | 129,431 | 4.9% | | **Total** | **3,063,455** | **100.0%** | **2,620,565** | **100.0%** | - Revenue from e-commerce platforms increased by **6.2%** year-on-year, mainly due to channel adjustment strategies and efforts to improve profitability quality[45](index=45&type=chunk) - Revenue from modern supermarket channels increased by **26.0%** year-on-year, direct customer revenue increased by **75.1%** year-on-year, and distribution network revenue increased by **29.8%** year-on-year[45](index=45&type=chunk) [Our Production](index=19&type=section&id=Our%20Production) The Group prioritizes quality, ensuring product excellence through a comprehensive raw material supply and production management system, having established long-term partnerships with quality suppliers and adopting order-based and partial self-operated cultivation strategies, with highly standardized and automated production processes, modern industrial bases built in five core grain-producing regions in China, and a sweet corn production base under construction in Nanning, Guangxi - Long-term stable relationships have been established with various product suppliers, with core production areas including Shenyang Xinmin, Wuchang, Songyuan, Tonghe, and Aohan regions[46](index=46&type=chunk) - A diversified supply strategy is adopted, including strategic cooperation with quality suppliers, contract farming with farmers, and partial self-operated cultivation[46](index=46&type=chunk) - Production processes are highly standardized and automated, with modern industrial bases built near five core grain-producing regions in China[47](index=47&type=chunk) - A sweet corn production base is under construction in Nanning, Guangxi, expected to be completed and operational in H2 2025[47](index=47&type=chunk) [Supply Chain Management](index=20&type=section&id=Supply%20Chain%20Management) The Group achieves real-time monitoring of the entire value chain by deeply integrating various channel resources, efficiently collecting and analyzing consumer data, and synchronizing order, inventory, and capacity information, implementing order-based production to ensure product freshness, and establishing a modern warehousing and distribution system with five self-operated regional distribution centers and over ten local warehouses - Achieves real-time monitoring of all links in the value chain, efficiently collects and analyzes consumer data, and synchronizes order, inventory, and capacity information[48](index=48&type=chunk) - Executes order-based production, typically completing production, processing, and shipment within **three days** of a customer placing an order, ensuring product freshness[48](index=48&type=chunk) - Possesses over **twenty** automated production lines and has established **five** self-operated regional distribution centers and over **ten** local warehouses[48](index=48&type=chunk) [Food Safety and Quality Control](index=20&type=section&id=Food%20Safety%20and%20Quality%20Control) Food safety and product quality are the Group's top priorities, implementing stringent food safety and quality control standards and measures throughout the entire operation, from procurement, production, and storage to sales, with a dedicated quality assurance team responsible for systematic, full-lifecycle quality management - Strict food safety and quality control standards and measures are implemented throughout the entire operation, covering steps from procurement, production, and storage to sales[49](index=49&type=chunk) - The quality assurance team focuses on implementing and maintaining the quality control system to execute the Group's quality control plan at the group level[49](index=49&type=chunk) [Information Technology Systems](index=21&type=section&id=Information%20Technology%20Systems) The Group's information technology systems cover all aspects of its operations, including raw material supply, production, operations, and logistics, having developed and adopted complementary systems such as SCM, ERP, TMS, WMS, and CRM to enhance operational efficiency and data management - Information technology systems cover all aspects of operations, including raw material supply, production, operations, and logistics[50](index=50&type=chunk) - Complementary systems such as Supply Chain Management (SCM), ERP, Transportation Management System (TMS), Warehouse Management System (WMS), and Customer Relationship Management (CRM) are adopted to enable efficient product operations and data management[50](index=50&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) The Group achieved growth in both revenue and gross profit in H1 2025, with an improved gross profit margin; however, profit for the period decreased due to a significant increase in fair value losses on financial assets, while selling and distribution expenses rose, and finance costs and income tax expenses decreased [Revenue and Gross Profit](index=21&type=section&id=Revenue%20and%20Gross%20Profit) Revenue for the reporting period was **RMB 3,063.5 million**, a **16.9%** year-on-year increase, with gross profit at **RMB 666.9 million**, up **50.1%** year-on-year, and gross profit margin increasing from **17.0%** to **21.8%**, primarily due to product mix adjustments, sales channel optimization, and a decrease in raw material rice prices Revenue and Gross Profit (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,063.5 | 2,620.6 | 16.9% | | Gross Profit | 666.9 | 444.3 | 50.1% | | Gross Profit Margin | 21.8% | 17.0% | +4.8pp | - Revenue growth is primarily attributed to expanding the multi-category product matrix, adjusting business layout, and enhancing brand effect and competitiveness[51](index=51&type=chunk) - Gross profit margin improvement is mainly due to product structure adjustments (higher proportion of mid-to-high-end products, reduced investment in low-margin products), sales channel optimization, and a decrease in raw material rice prices[51](index=51&type=chunk) [Other Net Income](index=22&type=section&id=Other%20Net%20Income) Other net income decreased from **RMB 31.1 million** in the prior period of 2024 to **RMB 12.3 million** in 2025, primarily due to the absence of investment income from wealth management products with idle raised funds and the reversal of litigation provisions from the previous year Other Net Income (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Other Net Income | 12.3 | 31.1 | - The decrease is mainly due to the absence of investment income from wealth management products with idle raised funds (**RMB 15.8 million**) and the reversal of litigation provisions (**RMB 3.8 million**) from the previous year in the reporting period[52](index=52&type=chunk) [Fair Value Changes of Biological Assets](index=22&type=section&id=Fair%20Value%20Changes%20of%20Biological%20Assets) Gain from fair value changes of biological assets decreased from **RMB 3.467 million** in the prior period of 2024 to **RMB 1.737 million** in 2025, primarily due to changes in cultivated area Gain from Fair Value Changes of Biological Assets (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gain from fair value changes of biological assets | 1,737 | 3,467 | - The decrease is mainly due to changes in cultivated area[53](index=53&type=chunk) [Selling and Distribution Expenses](index=22&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by **27.4%** from **RMB 239.6 million** in the prior period of 2024 to **RMB 305.2 million** in 2025, primarily due to a significant increase in operating expenses from a substantial rise in the number of self-operated stores in certain channels, and increased ground advertising in airports and business districts Selling and Distribution Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 305.2 | 239.6 | 27.4% | - The increase is mainly due to a significant increase in operating expenses from a substantial rise in the number of self-operated stores, and increased advertising and promotional expenses[54](index=54&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Administrative expenses slightly decreased from **RMB 73.2 million** in the prior period of 2024 to **RMB 70.4 million** in 2025, with various expenses remaining stable Administrative Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Administrative Expenses | 70.4 | 73.2 | - Administrative expenses remained stable, with a slight decrease[55](index=55&type=chunk) [Impairment Loss Reversal/Expense on Trade and Other Receivables](index=22&type=section&id=Impairment%20Loss%20Reversal%2FExpense%20on%20Trade%20and%20Other%20Receivables) Impairment loss on trade and other receivables shifted from an expense of **RMB 2.1 million** in the prior period of 2024 to a reversal of **RMB 4.9 million** in 2025, primarily due to the recovery of some long-aged trade receivables during the reporting period Impairment Loss Reversal/Expense on Trade and Other Receivables (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Impairment Loss Reversal/(Expense) on Trade and Other Receivables | 4.9 | (2.1) | - The shift to a reversal is mainly due to the recovery of some long-aged trade receivables[56](index=56&type=chunk) [Finance Costs](index=23&type=section&id=Finance%20Costs) Finance costs decreased by **23.8%** from **RMB 8.0 million** in the prior period of 2024 to **RMB 6.1 million** in 2025, primarily due to reduced interest expenses from a lower average borrowing balance and changes in foreign exchange gains and losses Finance Costs (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 6.1 | 8.0 | (23.8%) | - The decrease is mainly due to a **RMB 8.2 million** reduction in interest expenses from a lower average borrowing balance, and a shift from foreign exchange gains in the prior year to foreign exchange losses in the reporting period[57](index=57&type=chunk) [Fair Value Changes of Financial Assets at FVTPL](index=23&type=section&id=Fair%20Value%20Changes%20of%20Financial%20Assets%20at%20FVTPL) During the reporting period, the Group incurred a fair value change loss of **RMB 182.1 million** on financial assets measured at fair value, a significant increase from **RMB 23.1 million** in the prior period, primarily attributable to equity investments in listed companies held for strategic cooperation and investment purposes Fair Value Changes of Financial Assets at FVTPL (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Fair Value Changes of Financial Assets at FVTPL | (182.1) | (23.1) | - The loss significantly increased, primarily due to the Group's equity investments in listed companies held for strategic cooperation and investment purposes[58](index=58&type=chunk) [Income Tax Expense](index=23&type=section&id=Income%20Tax%20Expense) Income tax expense decreased by **19.7%** from **RMB 7.1 million** in the prior period of 2024 to **RMB 5.7 million** in 2025, primarily due to a reduction in taxable income Income Tax Expense (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax | 5.7 | 7.1 | (19.7%) | - The decrease is mainly due to a reduction in taxable income[59](index=59&type=chunk) [Profit for the Period](index=23&type=section&id=Profit%20for%20the%20Period) Due to the combined impact of the aforementioned factors, the Group's profit for the period decreased from **RMB 125.8 million** in the prior period of 2024 to **RMB 116.2 million** in 2025 Profit for the Period (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period | 116.2 | 125.8 | [Non-IFRS Measures](index=23&type=section&id=Non-IFRS%20Measures) The Group uses adjusted net profit (a non-IFRS measure) as an additional financial metric to supplement the consolidated financial statements presented under IFRS, defined as net profit for the period after deducting fair value changes of equity investments and after-tax dividend income, with adjusted net profit increasing by **97.7%** year-on-year and adjusted net profit margin rising from **5.7%** to **9.6%** during the reporting period - Adjusted net profit (a non-IFRS measure) serves as an additional financial metric, providing useful information to investors[61](index=61&type=chunk) - Adjusted net profit is defined as net profit for the period by deducting fair value changes of equity investments and after-tax dividend income[62](index=62&type=chunk) Reconciliation of Net Profit to Adjusted Net Profit (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period | 116,226 | 125,761 | | Add: Net loss from fair value changes of financial assets at FVTPL | 178,092 | 23,109 | | **Adjusted Net Profit** | **294,318** | **148,870** | - Adjusted net profit increased by **97.7%** year-on-year, and the adjusted net profit margin rose from **5.7%** to **9.6%**, primarily due to product structure and strategic layout adjustments, increasing the proportion of mid-to-high-end products, and improving gross profit margin[63](index=63&type=chunk) [Inventory](index=24&type=section&id=Inventory) The Group's inventory decreased by **21.3%** from **RMB 1,360.2 million** on December 31, 2024, to **RMB 1,070.7 million** on June 30, 2025, with inventory turnover days reducing from **113 days** to **93 days**, primarily due to seasonal raw material procurement and production consumption during the reporting period Inventory (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Inventory | 1,070.7 | 1,360.2 | (21.3%) | - Inventory turnover days decreased from **113 days** in 2024 to **93 days** in the reporting period[64](index=64&type=chunk) - The decrease is mainly due to the seasonal impact of raw material procurement (primarily acquiring raw grains in the fourth quarter) and production consumption during the reporting period[64](index=64&type=chunk) [Biological Assets](index=25&type=section&id=Biological%20Assets) As of June 30, 2025, the fair value of the Group's biological assets for cultivated corn and rice was **RMB 15.0 million** and **RMB 14.0 million**, respectively, with no biological asset balance at year-end as these assets are harvested annually from July to October Fair Value of Biological Assets (RMB million) | Item | June 30, 2025 | | :--- | :--- | | Fair value of cultivated corn | 15.0 | | Fair value of cultivated rice | 14.0 | - The Group's cultivated biological assets are harvested annually from July to October, thus there is no biological asset balance at year-end[65](index=65&type=chunk) [Trade and Other Receivables (Detailed)](index=25&type=section&id=Trade%20and%20Other%20Receivables%20(Detailed)) The Group's trade receivables decreased by **4.0%** from **RMB 377.4 million** on December 31, 2024, to **RMB 362.2 million** on June 30, 2025, with turnover days slightly increasing to **22 days**, and other receivables decreasing primarily due to deductible recoverable VAT Trade Receivables (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables | 362.2 | 377.4 | (4.0%) | - Trade receivables turnover days slightly increased from **20 days** in 2024 to **22 days** in the reporting period[66](index=66&type=chunk) - The decrease in other receivables is mainly due to deductible recoverable VAT being offset during the reporting period[66](index=66&type=chunk) [Financial Assets at FVTPL (Detailed)](index=25&type=section&id=Financial%20Assets%20at%20FVTPL%20(Detailed)) As of June 30, 2025, the Group's financial assets at fair value through profit or loss amounted to **RMB 440.7 million**, primarily equity investments in listed companies, with the decrease from December 31, 2024, mainly attributable to fair value changes Financial Assets at FVTPL (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial Assets | 440.7 | 615.1 | - The decrease is mainly due to changes in the fair value of financial assets[67](index=67&type=chunk) [Trade and Other Payables (Detailed)](index=25&type=section&id=Trade%20and%20Other%20Payables%20(Detailed)) The Group's trade payables increased by **4.6%** from **RMB 152.7 million** on December 31, 2024, to **RMB 159.8 million** on June 30, 2025, with turnover days slightly increasing to **12 days**, and other payables significantly rising by **173.0%**, primarily due to an increase of **RMB 175.2 million** in dividends payable Trade Payables (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 159.8 | 152.7 | 4.6% | | Other Payables | 274.5 | 100.5 | 173.0% | - Trade payables turnover days increased from **11 days** in the prior year to **12 days** in the reporting period[68](index=68&type=chunk) - The significant increase in other payables is mainly due to an increase of **RMB 175.2 million** in dividends payable by the company[68](index=68&type=chunk) [Contract Liabilities](index=25&type=section&id=Contract%20Liabilities) The Group's contract liabilities decreased by **62.1%** from **RMB 40.6 million** on December 31, 2024, to **RMB 15.4 million** on June 30, 2025, primarily due to the fulfillment of contract liability obligations during the reporting period and the impact of sales seasonality Contract Liabilities (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Contract Liabilities | 15.4 | 40.6 | (62.1%) | - The decrease is mainly due to the fulfillment of contract liability obligations and the impact of sales seasonality[69](index=69&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The Group experienced an increase in cash and bank balances and a significant reduction in bank loans, leading to a notable decrease in the capital gearing ratio and an improvement in its liquidity position [Cash and Bank Balances](index=26&type=section&id=Cash%20and%20Bank%20Balances) The Group's cash and bank balances increased by **10.3%** from **RMB 713.0 million** on December 31, 2024, to **RMB 786.7 million** on June 30, 2025, primarily due to the combined effect of cash inflows from operating activities and repayment of borrowings Cash and Bank Balances (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 786.7 | 713.0 | 10.3% | - The increase is mainly due to the combined effect of cash inflows from operating activities and repayment of borrowings[70](index=70&type=chunk) [Bank Loans](index=26&type=section&id=Bank%20Loans) The Group's bank loans decreased by **69.0%** from **RMB 645.5 million** on December 31, 2024, to **RMB 200.1 million** on June 30, 2025, primarily due to repayment of borrowings during the reporting period Bank Loans (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Bank Loans | 200.1 | 645.5 | (69.0%) | - The significant decrease is mainly due to the Group's repayment of borrowings during the reporting period[71](index=71&type=chunk) [Capital Gearing Ratio](index=26&type=section&id=Capital%20Gearing%20Ratio) As of June 30, 2025, the Group's capital gearing ratio was **17.5%**, a decrease from **23.0%** on December 31, 2024, primarily due to a reduction in debt from repayment of borrowings Capital Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Gearing Ratio | 17.5% | 23.0% | - The decrease is mainly due to the Group's repayment of borrowings, leading to a reduction in the amount of debt[72](index=72&type=chunk) [Financial Risks](index=26&type=section&id=Financial%20Risks) The Group faces credit, liquidity, interest rate, currency, and fair value measurement risks, and has implemented risk management plans to minimize potential adverse impacts, with credit risk primarily arising from trade receivables, liquidity managed through regular monitoring and sufficient cash reserves, interest rate risk from floating and fixed-rate borrowings, and currency risk mainly from USD and HKD denominated cash balances - The Group faces credit risk, liquidity risk, interest rate risk, currency risk, and fair value measurement risk[73](index=73&type=chunk) - Credit risk primarily arises from trade receivables, but credit risk for cash and bank balances is limited[74](index=74&type=chunk) - Liquidity is managed through regular monitoring of needs and maintaining sufficient cash reserves and committed credit facilities[75](index=75&type=chunk) - Interest rate risk arises from floating and fixed-rate interest-bearing borrowings, and currency risk primarily stems from USD and HKD denominated cash balances[76](index=76&type=chunk)[77](index=77&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[78](index=78&type=chunk) [Capital Commitments and Capital Expenditure](index=27&type=section&id=Capital%20Commitments%20and%20Capital%20Expenditure) As of June 30, 2025, the Group's capital commitments amounted to approximately **RMB 101.5 million**, primarily for the purchase and construction of buildings, machinery, and equipment, while capital expenditure was approximately **RMB 106.4 million**, mainly for the acquisition of property, plant and equipment, and land use rights Capital Commitments and Capital Expenditure (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Commitments | 101.5 | 64.4 | | Capital Expenditure for the Six Months Ended June 30 | 106.4 | 89.2 | - Capital commitments are primarily for the purchase and construction of buildings, machinery, and equipment[79](index=79&type=chunk) - Capital expenditure is primarily for the purchase of property, plant and equipment, and land use rights[79](index=79&type=chunk) [Pledged Assets](index=27&type=section&id=Pledged%20Assets) As of June 30, 2025, the total carrying amount of the Group's property, plant and equipment, and land use rights pledged for bank loans was **RMB 62.5 million**, a significant decrease from December 31, 2024 Total Carrying Amount of Pledged Assets (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Carrying Amount of Pledged Assets | 62.5 | 338.7 | [Significant Investments, Acquisitions and Disposals](index=27&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) During the reporting period, the Group held no significant investments and undertook no material acquisitions or disposals of subsidiaries, associates, or joint ventures - No significant investments, acquisitions, or disposals occurred during the reporting period[81](index=81&type=chunk) [Future Significant Investments or Capital Asset Plans](index=27&type=section&id=Future%20Significant%20Investments%20or%20Capital%20Asset%20Plans) During the reporting period and up to the date of this announcement, the Group currently has no plans to acquire other significant investments or capital assets, apart from the 'Future Plans and Use of Proceeds' disclosed in the prospectus - Currently, there are no plans to acquire other significant investments or capital assets, except as disclosed in the prospectus[82](index=82&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Compliance with Standard Code](index=28&type=section&id=Compliance%20with%20Standard%20Code) The Company has adopted the Standard Code as the code for securities transactions by directors and supervisors, and all directors and supervisors confirmed compliance with this code during the reporting period - All directors and supervisors confirmed compliance with the Standard Code during the reporting period[83](index=83&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with all applicable provisions of the Corporate Governance Code during the reporting period, except for Code Provision C.2.1 (separation of roles of chairman and chief executive), as the Board believes Mr. Wang Bing's dual role as Chairman and General Manager fosters consistent internal leadership and efficient strategic planning, with sufficient independent non-executive directors safeguarding shareholders' interests - The Company has complied with all applicable provisions of the Corporate Governance Code, except for Code Provision C.2.1[84](index=84&type=chunk) - The roles of Chairman and General Manager are held by Mr. Wang Bing, an arrangement the Board believes ensures consistent internal leadership and efficient strategic planning for the Group[84](index=84&type=chunk) - The Board has a sufficient number of independent non-executive directors (**three** out of **nine** directors) to safeguard the overall interests of the company and its shareholders[84](index=84&type=chunk) [Compliance with Laws and Regulations](index=28&type=section&id=Compliance%20with%20Laws%20and%20Regulations) The Group's operations are primarily conducted in China, and it has complied with relevant laws and regulations in applicable regions that have a significant impact on the Group, with no material breaches of such laws and regulations during the reporting period - The Group has complied with relevant laws and regulations in applicable regions that have a significant impact on the Group[85](index=85&type=chunk) - During the reporting period, the Group had no material breaches of such laws and regulations[85](index=85&type=chunk) [Purchase, Sale and Redemption of Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20and%20Redemption%20of%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, nor did they hold any treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[86](index=86&type=chunk) - As of the end of the reporting period, neither the Company nor any of its subsidiaries held any treasury shares[86](index=86&type=chunk) [Use of Proceeds from Global Offering](index=29&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the Company's H-share global offering were approximately **HKD 716.4 million**, with most funds utilized as planned for enhancing supplier cooperation, capacity expansion, channel coverage, brand enhancement, and working capital as of June 30, 2025, though the proposed timeline for unutilized proceeds for the digital middle-office system is later than originally planned - Net proceeds from the global offering were approximately **HKD 716.4 million**[88](index=88&type=chunk) Use of Proceeds from Global Offering and Utilization (HKD million) | Proposed Use | Approximate Percentage of Total Net Proceeds | Net Proceeds from Global Offering | Net Proceeds Used as of June 30, 2025 | Unutilized Net Proceeds as of June 30, 2025 | Expected Timeline for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance cooperation with suppliers and strengthen procurement capabilities | 35% | 250.74 | 200.76 | 49.98 | Before end of 2025 | | Capacity expansion, upgrade of existing production lines, increase warehousing and logistics coverage, and fund production activities related to business expansion | 30% | 214.92 | 154.51 | 60.41 | Before end of 2025 | | Deepen channel coverage and build a sales ecosystem | 10% | 71.64 | 60.88 | 10.76 | Before end of 2025 | | Enhance brand momentum | 10% | 71.64 | 64.21 | 7.43 | Before end of 2025 | | Build a digital middle-office system | 5% | 35.82 | 7.75 | 28.07 | Before end of 2027 | | Working capital and general corporate purposes | 10% | 71.64 | 65.80 | 5.84 | Before end of 2025 | | **Total** | **100%** | **716.40** | **553.91** | **162.49** | | - The proposed timeline for unutilized net proceeds for building the digital middle-office system is later than originally planned due to the company's overall information technology strategy adjustment[88](index=88&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee comprises one non-executive director and two independent non-executive directors, with Mr. Yang Zhida serving as Chairman, and has reviewed the Group's accounting principles, financial reporting matters, and the unaudited interim results for the six months ended June 30, 2025 - The Audit Committee consists of one non-executive director and two independent non-executive directors, with Mr. Yang Zhida as Chairman[89](index=89&type=chunk) - The Committee has reviewed the accounting principles and practices adopted by the Group and the interim results[89](index=89&type=chunk) [Review of Interim Financial Information](index=30&type=section&id=Review%20of%20Interim%20Financial%20Information) The financial information in this announcement is extracted from the unaudited interim financial report, which has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, resulting in a review report with an unmodified conclusion - The interim financial report is unaudited but has been reviewed by KPMG, which issued a review report with an unmodified conclusion[90](index=90&type=chunk) [Interim Dividend](index=30&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[91](index=91&type=chunk) [Human Resources and Remuneration Policy](index=30&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) Adhering to the philosophy that 'talent is the company's most valuable resource', the Company continuously refines its human resource management system, focusing on recruiting talent for key business channels, expanding campus recruitment, and introducing supply chain and quality control professionals in H1, while fostering talent through 'Amoeba' management and 'central-decentralized-central' linkage models, strengthening performance management, and improving the remuneration system to attract and retain talent, with **2,225** full-time employees as of June 30, 2025 - The company focuses on key business channels, strengthens talent pipeline development, expands campus recruitment, and introduces professionals in supply chain and quality control[92](index=92&type=chunk) - Talent is cultivated through 'Amoeba' management and 'central-decentralized-central' linkage models, strengthening performance management[93](index=93&type=chunk) - The remuneration system is improved, flexibly utilizing various compensation structures and models, such as piece-rate wages and performance incentives, and handling various social insurances and housing provident funds[94](index=94&type=chunk) - As of June 30, 2025, the company had **2,225** full-time employees[95](index=95&type=chunk) [Share Schemes](index=31&type=section&id=Share%20Schemes) For the six months ended June 30, 2025, neither the Company nor its principal subsidiaries had any share schemes - For the six months ended June 30, 2025, neither the Company nor its principal subsidiaries had any share schemes[96](index=96&type=chunk) [Subsequent Events](index=32&type=section&id=Subsequent%20Events) As of the date of this announcement, no significant events have occurred since June 30, 2025, that would materially affect the Group's operations and financial performance - As of the date of this announcement, no significant events have occurred since June 30, 2025, that would materially affect the Group's operations and financial performance[97](index=97&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=32&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the HKEX website and the Company's website, and the interim report containing all information required by the Listing Rules will be published on the aforementioned websites in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.shiyuedaotian.com)[98](index=98&type=chunk) - The interim report, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course[98](index=98&type=chunk) [Appendices](index=32&type=section&id=Appendices) [Definitions](index=32&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in the report, including Audit Committee, Board, Company, Corporate Governance Code, ERP System, Directors, Group, H Shares, Hong Kong, HKD, Listing Rules, LKA, Standard Code, NKA, China, Prospectus, Reporting Period, RMB, Shares, Shareholders, Stock Exchange, Subsidiaries, Supervisors, Treasury Shares, Unlisted Shares, and USD [Board of Directors](index=34&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises five executive directors (Mr. Wang Bing, Ms. Zhao Wenjun, Ms. Zhao Shulan, Mr. Shu Minghe, and Mr. Zou Hao), one non-executive director (Mr. Chang Bin), and three independent non-executive directors (Mr. Shi Ketong, Mr. Yang Zhida, and Mr. Lin Chen), with Mr. Wang Bing also serving as Chairman and Executive Director - The Board of Directors includes **five** executive directors, **one** non-executive director, and **three** independent non-executive directors[101](index=101&type=chunk) - Mr. Wang Bing serves concurrently as Chairman and Executive Director[101](index=101&type=chunk)

[2025 Interim Results Overview](index=4&type=section&id=2025%20Interim%20Results%20Overview) [Summary of Operating Results](index=4&type=section&id=2.1%20Summary%20of%20Operating%20Results) Company reported H1 2025 consolidated operating revenue of **RMB 112.032 billion** (down 5.70%) and net profit attributable to equity holders of **RMB 9.578 billion** (up 23.19%), with **RMB 0.52** earnings per share H1 2025 Operating Results | Metric | H1 2025 (RMB billion) | YoY Change | | :--- | :--- | :--- | | Consolidated Operating Revenue | 112.032 | -5.70% | | Net Profit Attributable to Equity Holders | 9.578 | +23.19% | | Earnings Per Share | RMB 0.52 | - | [H1 Business Review](index=4&type=section&id=2.2%20H1%20Business%20Review) H1 saw improved operating efficiency, accelerated transformation, and significant new energy capacity growth, with stable overseas business - Company's H1 operating efficiency improved, transformation accelerated, and innovation released vitality, showing a good steady upward trend[11](index=11&type=chunk) [Power Generation](index=4&type=section&id=2.2.1%20Power%20Generation) H1 on-grid power generation decreased by 2.37% YoY, with reduced average utilization hours, while new energy capacity continued to grow H1 2025 Power Generation Metrics | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | On-grid Power Generation | 205.683 billion kWh | -2.37% | | Average Utilization Hours | 1,502 hours | -178 hours | | Market-based Transaction Power Ratio | 84.64% | -2.27 percentage points | - Company continued its green and low-carbon transformation, with wind and solar capacity growth driving new energy generation increase[12](index=12&type=chunk) - Coal-fired unit generation decreased due to overall loose supply-demand and national new energy capacity growth, leading to a decline in total generation[12](index=12&type=chunk) [Cost Control](index=4&type=section&id=2.2.2%20Cost%20Control) Company significantly controlled fuel costs in H1 through optimized procurement strategies, improving long-term contract performance, and purchasing low-priced spot coal H1 2025 Coal Procurement and Price Metrics | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | Accumulated Coal Procurement | 87.14 million tons | -10.70% | | Domestic Tax-exclusive Standard Coal Unit Price for Power Generation | RMB 917.05/ton | -9.23% | [Energy Saving and Environmental Protection](index=4&type=section&id=2.2.3%20Energy%20Saving%20and%20Environmental%20Protection) Company strictly implemented national environmental requirements, completing ultra-low emission upgrades for all power plants and maintaining good energy consumption and pollutant emission indicators - All power generation enterprises completed ultra-low emission upgrades, ensuring pollutant emission levels meet requirements[14](index=14&type=chunk) H1 2025 Energy Efficiency Metrics | Metric | H1 2025 | | :--- | :--- | | Average Equivalent Availability Rate of Domestic Coal-fired Units | 93.52% | | Coal Consumption for Power Supply | 288.66 g/kWh | | Power Consumption Rate for Production | 4.26% | [Technological Innovation](index=5&type=section&id=2.2.4%20Technological%20Innovation) Company focused on national strategies, increased R&D investment, and achieved multiple key technological results and patent authorizations in CO2 capture, integrated PV energy, and virtual power plants - Company proactively deployed in cybersecurity, technology-driven safety, offshore wind power, and gas turbine autonomous O&M, continuously promoting high-quality technological achievement transformation[16](index=16&type=chunk) - "Advanced low-energy CO2 capture technology" was selected for the national key low-carbon technology catalog; Henan Anyang "PV + ecological construction" 100 MW integrated energy innovation demonstration project achieved full capacity grid connection[16](index=16&type=chunk) H1 2025 Patent Authorizations | Patent Type | H1 2025 Authorized Quantity | | :--- | :--- | | Invention Patents | 494 items | | Utility Model Patents | 45 items | | International Patents | 141 items | [Project Development and Construction](index=5&type=section&id=2.2.5%20Project%20Development%20and%20Construction) Company vigorously promoted new energy project construction, adding nearly 8 GW of controllable grid-connected power generation capacity in H1, with new energy accounting for over 6 GW H1 2025 Newly Grid-connected Controllable Power Generation Capacity | Newly Grid-connected Controllable Power Generation Capacity | H1 2025 (MW) | | :--- | :--- | | Total | 7,987.31 | | Coal-fired Power | 1,724.40 | | Wind Power | 1,928.45 | | Solar Power | 4,334.46 | - As of June 30, 2025, the company's controllable power generation capacity was **152,992 MW**, with low-carbon clean energy accounting for **39.12%**[17](index=17&type=chunk) [Overseas Business](index=5&type=section&id=2.2.6%20Overseas%20Business) Singapore Tuas Power's market share and pre-tax profit decreased due to ample market supply, while Pakistan's business pre-tax profit slightly increased H1 2025 Overseas Business Performance | Business Region | H1 2025 Market Share | YoY Change | H1 2025 Pre-tax Profit (RMB billion) | YoY Change (RMB billion) | | :--- | :--- | :--- | :--- | :--- | | Singapore Tuas Power | 18.61% | -1.79 percentage points | 1.363 | -0.360 | | Pakistan Business | - | - | 0.436 | +0.007 | [H2 Business Outlook](index=5&type=section&id=2.3%20H2%20Business%20Outlook) Company will focus on high-quality stable growth, deepening operational excellence, technological innovation, and green development, while optimizing asset and power source structure - Company will prioritize high-quality stable growth, aiming to achieve annual targets and build a world-class enterprise[19](index=19&type=chunk)[20](index=20&type=chunk) [Electricity Market Outlook](index=6&type=section&id=2.3.1%20Electricity%20Market%20Outlook) H2 electricity supply-demand is expected to be generally loose, with new energy curtailment pressure and intensified competition from spot markets, potentially lowering electricity prices - Overall loose electricity supply-demand will deepen, with new energy curtailment pressure in some regions; full market entry of new energy and spot markets, coupled with continuous new energy capacity growth, will impact market prices[20](index=20&type=chunk) - Company will strengthen analysis of regional weather changes and electricity supply-demand, seize peak demand periods, optimize generation timing and structure, and strive for high-price generation to maximize efficiency[20](index=20&type=chunk) [Coal Market Outlook](index=6&type=section&id=2.3.2%20Coal%20Market%20Outlook) H2 coal demand is expected to rebound seasonally due to peak summer/winter, potentially changing the overly loose supply-demand situation, requiring optimized procurement and inventory management - Coal demand will seasonally rebound during peak summer/winter and extreme weather, potentially changing the overly loose supply-demand situation[20](index=20&type=chunk) - Company will closely monitor coal market changes, implement national policies, continuously optimize procurement structure, leverage long-term contracts, seize market opportunities for spot coal, and strengthen inventory management to control procurement costs[20](index=20&type=chunk) [Capital Market Outlook](index=6&type=section&id=2.3.3%20Capital%20Market%20Outlook) Nation will implement moderately loose monetary policy to promote economic recovery, and the company will optimize financing structure and broaden channels to secure funds for energy supply and green transformation - 2025 will promote sustained economic recovery, implementing moderately loose monetary policy and strengthening coordination between monetary and fiscal policies[21](index=21&type=chunk) - Company will further strengthen analysis of policies, situations, and capital markets, closely monitor domestic and international capital market changes, actively respond to national support policies, continuously optimize financing structure, and broaden financing channels to secure funds for energy supply and green low-carbon transformation[21](index=21&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=6&type=section&id=3.1%20Overview) Company is one of China's largest listed power generation companies, with significant controllable capacity and a growing share of low-carbon clean energy, reporting H1 revenue decline but substantial net profit growth - Company primarily develops, constructs, and operates power plants across China, being one of the largest listed power generation companies in China[21](index=21&type=chunk) Key Capacity Metrics | Metric | June 30, 2025 | | :--- | :--- | | Controllable Power Generation Capacity | 152,992 MW | | Low-carbon Clean Energy Capacity Share | 39.12% | H1 2025 Financial Highlights | Metric | H1 2025 (RMB billion) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 112.032 | -5.70% | | Net Profit Attributable to Equity Holders | 9.578 | +23.19% | | Earnings Per Share | RMB 0.52 | +RMB 0.12 | [Operating Results](index=7&type=section&id=3.2%20Operating%20Results) H1 operating performance showed a decrease in total on-grid power generation but significant growth in new energy generation, with reduced operating revenue offset by a substantial drop in fuel costs, driving double-digit net profit growth [H1 2025 Operating Performance](index=7&type=section&id=3.2.1%20H1%202025%20Operating%20Performance) H1 domestic regional power plants' total on-grid power generation decreased by 2.37% YoY, with coal-fired generation declining while wind and solar generation significantly increased H1 2025 On-grid Power Generation by Unit Type | Unit Type | Jan-Jun 2025 On-grid Power Generation (billion kWh) | YoY Change | | :--- | :--- | :--- | | Coal-fired | 158.363 | -7.06% | | Gas-fired | 13.255 | +7.47% | | Wind Power | 21.031 | +11.39% | | Solar Power | 12.243 | +49.33% | | Hydropower | 0.389 | -22.13% | | Biomass Power | 0.402 | +9.83% | | Total | 205.683 | -2.37% | - Singapore Tuas Power Ltd.'s market share of power generation was **18.61%**, a YoY decrease of **1.79 percentage points**[28](index=28&type=chunk) [Comparative Analysis of Operating Performance](index=11&type=section&id=3.2.2%20Comparative%20Analysis%20of%20Operating%20Performance) H1 operating revenue decreased due to lower domestic sales and Singapore market prices, but a significant reduction in fuel costs led to an overall decrease in operating costs, driving a 23.19% YoY increase in net profit attributable to equity holders [Operating Revenue and Taxes and Surcharges](index=11&type=section&id=3.2.2.1%20Operating%20Revenue%20and%20Taxes%20and%20Surcharges) H1 consolidated operating revenue decreased by 5.70% YoY, primarily due to lower domestic sales and Singapore market prices, while taxes and surcharges increased by 22.84% H1 2025 Operating Revenue and Taxes | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | YoY Change | | :--- | :--- | :--- | :--- | | Consolidated Operating Revenue | 112.032 | 118.806 | -5.70% | | Taxes and Surcharges | 1.105 | 0.900 | +22.84% | - China domestic business operating revenue decreased by **RMB 4.829 billion** YoY, mainly due to lower domestic sales volume and electricity prices[29](index=29&type=chunk) - Singapore business operating revenue decreased by **RMB 2.298 billion** YoY, mainly due to overall falling electricity market prices and lower retail contract volume[30](index=30&type=chunk) [Operating Costs and Expenses](index=11&type=section&id=3.2.2.2%20Operating%20Costs%20and%20Expenses) H1 total operating costs decreased by 9.77% YoY, mainly due to lower fuel prices in China, despite increases in repair, depreciation, and labor costs H1 2025 Operating Costs and Expenses | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Costs | 93.306 | 103.412 | -9.77% | | Fuel Costs | 58.305 | 68.114 | -14.40% | | Repair Expenses | 2.058 | 1.861 | +10.62% | | Depreciation | 13.560 | 12.735 | +6.47% | | Labor Costs | 9.019 | 8.685 | +3.85% | | Other Expenses | 10.365 | 12.018 | -13.75% | - China domestic business operating costs decreased by **RMB 8.670 billion** YoY, mainly due to lower domestic fuel prices[31](index=31&type=chunk) [Finance Costs](index=12&type=section&id=3.2.2.3%20Finance%20Costs) H1 finance costs decreased by 16.59% YoY, primarily due to lower interest expenses from reduced funding costs for interest-bearing debt in China and decreased loan principal and financing costs in Pakistan H1 2025 Finance Costs | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | YoY Change | | :--- | :--- | :--- | :--- | | Finance Costs | 3.567 | 4.276 | -16.59% | - Interest expenses decreased by **RMB 0.540 billion** YoY, mainly due to lower funding costs for interest-bearing debt in China domestic business and reduced loan principal and financing costs in Pakistan business[38](index=38&type=chunk) [Share of Profits from Associates/Joint Ventures](index=12&type=section&id=3.2.2.4%20Share%20of%20Profits%20from%20Associates%2FJoint%20Ventures) H1 share of profits from associates/joint ventures was RMB 0.765 billion, a YoY decrease of 10.86%, mainly due to lower recognized investment income H1 2025 Share of Profits from Associates/Joint Ventures | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | YoY Change | | :--- | :--- | :--- | :--- | | Share of Profits from Associates/Joint Ventures | 0.765 | 0.858 | -10.86% | [Income Tax Expense](index=13&type=section&id=3.2.2.5%20Income%20Tax%20Expense) H1 income tax expense increased by 22.73% YoY, primarily due to increased profits from China domestic business, while Singapore and Pakistan businesses saw reduced income tax expenses H1 2025 Income Tax Expense | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | YoY Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 2.388 | 1.946 | +22.73% | - China domestic business income tax expense increased by **RMB 0.541 billion** YoY, mainly due to increased domestic profits[40](index=40&type=chunk) [Net Profit Attributable to Equity Holders of the Company](index=13&type=section&id=3.2.2.6%20Net%20Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) H1 net profit attributable to equity holders increased by 23.19% YoY, mainly driven by lower fuel costs in China domestic business and profit growth in the new energy sector H1 2025 Net Profit Attributable to Equity Holders | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | YoY Change | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Equity Holders | 9.578 | 7.775 | +23.19% | - China domestic business net profit increased by **RMB 2.081 billion** YoY, mainly due to lower fuel costs and expanded new energy scale[41](index=41&type=chunk) [Comparison of Financial Position](index=13&type=section&id=3.2.2.7%20Comparison%20of%20Financial%20Position) As of June 30, 2025, total assets increased by 1.17% YoY, total liabilities decreased by 0.19% YoY, and the asset-liability ratio decreased by 0.87 percentage points to 63.78%, indicating continuous optimization of the financial structure Financial Position Metrics | Metric | June 30, 2025 (RMB billion) | Change from Year-end | | :--- | :--- | :--- | | Total Assets | 6,025.52 | +1.17% | | Total Liabilities | 3,842.80 | -0.19% | | Asset-Liability Ratio | 63.78% | -0.87 percentage points | [Comparison of Key Financial Ratios](index=14&type=section&id=3.2.2.8%20Comparison%20of%20Key%20Financial%20Ratios) Company's debt-to-equity ratio decreased and interest coverage ratio significantly increased, reflecting enhanced profitability and improved solvency, despite net current liabilities of **RMB 73.249 billion** Key Financial Ratios | Item | June 30, 2025 | Dec 31, 2024 | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | :--- | :--- | | Debt-to-Equity Ratio | 2.59 | 2.68 | - | - | | Current Ratio | 0.57 | 0.54 | - | - | | Quick Ratio | 0.51 | 0.46 | - | - | | Interest Coverage Ratio | - | - | 4.61 | 3.43 | - Company and its subsidiaries' debt-to-equity ratio decreased compared to year-end 2024, mainly due to operating profits in H1 2025[44](index=44&type=chunk) - Interest coverage ratio increased compared to the same period last year, mainly due to increased profits in H1 2025[44](index=44&type=chunk) [Liquidity and Capital Resources](index=15&type=section&id=3.3%20Liquidity%20and%20Capital%20Resources) H1 net cash inflow from operating activities significantly increased, while net cash outflow from financing activities was mainly due to increased debt repayment, with ample bank credit lines and declared 2024 annual cash dividends [Liquidity](index=15&type=section&id=3.3.1%20Liquidity) H1 net cash inflow from operating activities increased by 30.27% YoY, primarily due to decreased revenue and reduced fuel procurement expenditures, with cash and cash equivalents balance of **RMB 21.947 billion** H1 2025 Cash Flow Summary | Item | H1 2025 (RMB billion) | H1 2024 (RMB billion) | Change Rate | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 30.748 | 23.603 | +30.27% | | Net Cash Used in Investing Activities | (21.803) | (21.554) | +1.16% | | Net Cash (Used in)/Generated from Financing Activities | (5.760) | 1.981 | N/A | | Net Increase in Cash and Cash Equivalents | 3.346 | 4.176 | -19.88% | | Cash and Cash Equivalents Balance at Period End | 21.947 | 20.327 | +7.97% | - Company has long-term foreign currency borrowings, thus exposed to exchange rate risk, but closely monitors interest and foreign exchange markets to mitigate risk[47](index=47&type=chunk) [Capital Expenditures and Capital Resources](index=16&type=section&id=3.3.2%20Capital%20Expenditures%20and%20Capital%20Resources) H1 actual capital expenditure for infrastructure and renovation was **RMB 19.017 billion**, with a high proportion for new energy projects, supported by over **RMB 420 billion** in unused bank credit lines H1 2025 Capital Expenditure by Type | Capital Expenditure Type | H1 2025 (RMB billion) | | :--- | :--- | | Total Actual Capital Expenditure for Infrastructure and Renovation | 19.017 | | Of which: Infrastructure Expenditure | 17.258 | | Wind Power Infrastructure Expenditure | 6.142 | | Solar Power Infrastructure Expenditure | 6.579 | | Coal-fired Power Infrastructure Expenditure | 4.105 | | Renovation Expenditure | 1.759 | - Company has over **RMB 420 billion** in unused bank comprehensive credit lines granted by commercial banks including Bank of China, China Construction Bank, and Industrial and Commercial Bank of China[49](index=49&type=chunk) Long-term Borrowings and Interest Rates | Item | June 30, 2025 (RMB billion) | Dec 31, 2024 (RMB billion) | | :--- | :--- | :--- | | Total Long-term Borrowings | 186.977 | 183.778 | | Annual Interest Rate Range for Long-term Bank Borrowings | 0.75%-9.04% | 0.75%-9.35% | - Company declared a cash dividend of **RMB 0.27** per ordinary share (tax inclusive) on June 24, 2025, totaling **RMB 4.238 billion**[50](index=50&type=chunk) [Performance of Significant Investments](index=16&type=section&id=3.4%20Performance%20of%20Significant%20Investments) Company's equity investment in Shenzhen Energy Group Co., Ltd. and its subsidiary Shenzhen Energy provided relatively stable investment returns - Company directly holds **991,741,659 shares** of Shenzhen Energy, approximately **25.02%** of its equity, providing relatively stable investment returns[51](index=51&type=chunk) [Welfare Policy](index=17&type=section&id=3.5%20Welfare%20Policy) As of June 30, 2025, the company had **55,350 employees**, with no significant changes in remuneration policies and training programs during the reporting period Employee Count | Metric | June 30, 2025 | | :--- | :--- | | Total Employees | 55,350 persons | - No significant changes occurred in the company's remuneration policies and training programs during the reporting period[52](index=52&type=chunk) [Guaranteed and Mortgaged Debts and Restricted Assets](index=17&type=section&id=3.6%20Guaranteed%20and%20Mortgaged%20Debts%20and%20Restricted%20Assets) As of June 30, 2025, the company provided multiple bank loan and long-term bond guarantees for subsidiaries and had several pledged and mortgaged borrowings, with restricted bank deposits amounting to **RMB 1.183 billion** Guarantees Provided | Guarantee Type | June 30, 2025 (RMB billion) | Dec 31, 2024 (RMB billion) | | :--- | :--- | :--- | | Guarantees for Domestic Subsidiary Bank Loans | 1.338 | 1.273 | | Guarantees for Overseas Subsidiary Long-term Bonds | 2.148 | 4.313 | Pledged/Mortgaged Borrowings | Pledged/Mortgaged Borrowing Type | June 30, 2025 (RMB billion) | Dec 31, 2024 (RMB billion) | | :--- | :--- | :--- | | Bank Borrowings (Bills Receivable Discounted) | 0.009 | 0.047 | | Short-term Borrowings (Machinery and Equipment Mortgaged) | 0.004 | 0.302 | | Long-term Borrowings (Fixed Assets Mortgaged) | 2.732 | 3.051 | | Long-term Borrowings (Electricity/Heating Fee Collection Rights Pledged) | 4.834 | 5.060 | - As of June 30, 2025, restricted bank deposits amounted to **RMB 1.183 billion**[57](index=57&type=chunk) [Risk Factors](index=18&type=section&id=3.7%20Risk%20Factors) Company faces market risks from loose power supply-demand and intensified competition, fuel procurement uncertainties, carbon market price volatility, stricter environmental policies, and power construction delays [Power Industry and Market Risks](index=18&type=section&id=3.7.1%20Power%20Industry%20and%20Market%20Risks) National new energy capacity growth far exceeds load growth, leading to overall loose electricity supply-demand and intensified competition from spot markets, potentially lowering electricity prices and affecting company earnings - Electricity supply capacity growth is expected to exceed demand growth in 2025, leading to overall loose supply-demand, with new energy curtailment pressure in some regions[58](index=58&type=chunk) - Full market entry of new energy, increased supply in mid-to-long term markets, and new energy's significantly lower marginal costs compared to coal power will impact market prices; electricity energy prices will trend downwards, potentially affecting overall company earnings[58](index=58&type=chunk) - Company will optimize investment regions and power source portfolios for maximum economic benefits, accelerate technological upgrades and transformation of coal-fired units, strengthen analysis of electricity supply-demand, and adjust pricing strategies to actively respond to market uncertainties[59](index=59&type=chunk) [Fuel Procurement Market Risks](index=18&type=section&id=3.7.2%20Fuel%20Procurement%20Market%20Risks) Coal demand will seasonally rebound during peak periods, potentially changing the overly loose supply-demand situation, and imported coal supply in coastal regions is subject to policy and international market uncertainties - Coal demand will seasonally rebound during peak summer/winter and extreme weather, potentially changing the overly loose supply-demand situation[60](index=60&type=chunk) - Coal supply in coastal regions, with a larger proportion of imported coal, is subject to policy and international coal market influences, posing certain uncertainties[60](index=60&type=chunk) - Company will fully leverage long-term contracts as a "ballast stone," improve performance quality, seize market opportunities for low-priced spot coal, grasp policy and international coal market trends for optimized imported coal, and strengthen inventory management to control procurement costs through multiple measures[62](index=62&type=chunk) [Carbon Market Risks](index=19&type=section&id=3.7.3%20Carbon%20Market%20Risks) National carbon market quota allocation continues to tighten, and quota carry-over policies may lead to market price volatility, requiring the company to accelerate energy saving and emission reduction and optimize carbon trading strategies - In the fourth compliance period (2024), quota allocation continues to tighten, and market prices may fluctuate due to quota carry-over policies[63](index=63&type=chunk) - Company will closely monitor national carbon market policy changes, accelerate energy saving and emission reduction upgrades, effectively control total carbon emissions, and optimize carbon trading strategies to reduce compliance costs[63](index=63&type=chunk) [Environmental Risks](index=19&type=section&id=3.7.4%20Environmental%20Risks) Stricter national environmental policies in key regions, particularly for water protection and dust control, may increase environmental expenses for grassroots enterprises, despite the company's completed ultra-low emission upgrades - Nation is continuously improving and deepening environmental policies in key regions, proposing new and stricter standards and requirements for water protection and dust control, which may increase environmental expenses for relevant grassroots enterprises[64](index=64&type=chunk) - All coal-fired power plants of the company have completed ultra-low emission upgrades, achieving ultra-low emission operation, and actively respond to central ecological environmental protection inspection requirements, striving to identify and effectively mitigate various environmental risks[65](index=65&type=chunk) [Power Construction Risks](index=19&type=section&id=3.7.5%20Power%20Construction%20Risks) Power construction may face risks such as extreme weather, rising labor costs, delays in project preliminary procedures, and prolonged land acquisition cycles, requiring strengthened organizational coordination - In power construction, the company may face risks such as extreme weather, rising labor costs, delays in project preliminary procedures, and prolonged land acquisition cycles[66](index=66&type=chunk) - Company actively responds to risks and challenges, takes proactive measures, strengthens organizational coordination, mobilizes all project participants, overcomes difficulties, and ensures projects proceed as planned[66](index=66&type=chunk) [Other Disclosures](index=20&type=section&id=3.8%20Other%20Disclosures) Company actively responded to the "Quality Improvement, Efficiency Enhancement, and Return Focus" initiative, promoting green and low-carbon energy transformation, achieving significant growth in net profit and EPS, and increasing its 2024 dividend payout ratio - Company focused on "Quality Improvement, Efficiency Enhancement, and Return Focus" to promote high-quality development and guide reasonable value return[67](index=67&type=chunk) H1 2025 Performance Highlights | Metric | H1 2025 | | :--- | :--- | | Newly Grid-connected Controllable Power Generation Capacity | 7,987.31 MW | | Of which New Energy Capacity | Over 6,262 MW | | Low-carbon Clean Energy Capacity Share | 39.12% | | Net Profit Attributable to Equity Holders | RMB 9.578 billion (YoY increase of 23.19%) | | Earnings Per Share | RMB 0.52 (YoY increase of 30.00%) | - Company further increased 2024 dividend payout ratio, declaring a cash dividend of **RMB 0.27** per share (tax inclusive) to all shareholders, totaling over **RMB 4.2 billion**[68](index=68&type=chunk) [Share Capital and Shareholder Information](index=21&type=section&id=Share%20Capital%20and%20Shareholder%20Information) [Share Capital Structure](index=21&type=section&id=4.1%20Share%20Capital%20Structure) As of June 30, 2025, total issued share capital was **15,698,093,359 shares**, with domestic shares accounting for **70.06%** and foreign shares for **29.94%** Share Capital Breakdown | Share Type | Number of Shares | Percentage of Total Share Capital | | :--- | :--- | :--- | | Total Issued Share Capital | 15,698,093,359 shares | 100% | | Domestic Shares | 10,997,709,919 shares | 70.06% | | Foreign Shares | 4,700,383,440 shares | 29.94% | - Huaneng Power International Development Company holds **5,066,662,118 shares**, accounting for **32.28%** of total share capital[70](index=70&type=chunk) [Purchase, Sale or Redemption of Shares](index=21&type=section&id=4.2%20Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) Company and its subsidiaries did not purchase, sell, or redeem any of the company's shares or other listed securities in H1 2025, and held no treasury shares during the reporting period - Company and its subsidiaries did not sell, purchase, or redeem any of the company's shares or other listed securities in H1 2025[71](index=71&type=chunk) - As of June 30, 2025, and during the reporting period, the company held no treasury shares[71](index=71&type=chunk) [Major Shareholder Holdings](index=22&type=section&id=4.3%20Major%20Shareholder%20Holdings) As of June 30, 2025, Huaneng Power International Development Company was the largest shareholder with a **32.28%** stake, followed by HKSCC Nominees Limited and China Huaneng Group Co., Ltd Top Shareholders | Shareholder Name | Total Shares Held | Percentage of Shares Held (%) | | :--- | :--- | :--- | | Huaneng Power International Development Company | 5,066,662,118 | 32.28% | | HKSCC Nominees Limited | 4,203,258,330 | 26.78% | | China Huaneng Group Co., Ltd. | 1,555,124,549 | 9.91% | [Significant Interests and Short Positions](index=23&type=section&id=4.4%20Significant%20Interests%20and%20Short%20Positions) As of June 30, 2025, major shareholders held significant long positions, with BlackRock, Inc. also holding a small short position in H shares Significant Interests and Short Positions | Shareholder Name | Share Class | Number of Shares | Capacity | Approx. Percentage of Total Issued Shares of the Company | | :--- | :--- | :--- | :--- | :--- | | Huaneng Power International Development Company | Domestic Shares | 5,066,662,118(L) | Beneficial Owner | 32.28%(L) | | China Huaneng Group Co., Ltd. | Domestic Shares | 1,555,124,549(L) | Beneficial Owner | 9.91%(L) | | China Huaneng Group Co., Ltd. | H Shares | 603,596,000(L) | Beneficial Owner | 3.85%(L) | | Shanghai Ruijun Asset Management Co., Ltd. | H Shares | 520,101,000(L) | Investment Manager | 3.31%(L) | | BlackRock, Inc. | H Shares | 254,065,595(L) | Interest of Controlled Corporation | 1.62%(L) | | BlackRock, Inc. | H Shares | 13,448,000(S) | Interest of Controlled Corporation | 0.09%(S) | [Directors' and Supervisors' Rights to Purchase Shares](index=24&type=section&id=4.5%20Directors'%20and%20Supervisors'%20Rights%20to%20Purchase%20Shares) Company directors and supervisors confirmed compliance with the standard code for securities transactions in H1 2025, with no disclosable interests or short positions held by directors, chief executives, or supervisors as of June 30, 2025 - After inquiry with all directors and supervisors, they confirmed compliance with the relevant code in H1 2025[76](index=76&type=chunk) - As of June 30, 2025, no directors, chief executives, or supervisors held any interests or short positions in the shares, underlying shares, and/or debentures of the company and/or any associated corporations that need to be disclosed under Part XV Sections 7 and 8 of the Securities and Futures Ordinance[76](index=76&type=chunk) [Public Float](index=24&type=section&id=4.6%20Public%20Float) As of the announcement date, the company has maintained the public float as stipulated by the Listing Rules and agreed with the Hong Kong Stock Exchange - As of the announcement date, the company has maintained the public float as stipulated by the Listing Rules and agreed with the Hong Kong Stock Exchange[77](index=77&type=chunk) [Dividends](index=24&type=section&id=4.7%20Dividends) The Board of Directors decided not to declare any interim dividend for 2025 - The Board of Directors decided not to declare any interim dividend for 2025[78](index=78&type=chunk) [Disclosure of Major Events](index=24&type=section&id=Disclosure%20of%20Major%20Events) [Changes in Directors and Senior Management](index=24&type=section&id=5.1%20Changes%20in%20Directors%20and%20Senior%20Management) Multiple personnel changes occurred in the company's Board of Directors and senior management during the reporting period, including resignations and new appointments for directors and the general manager - Mr. Wang Zhijie resigned as Vice Chairman, Director, and member of relevant Board committees due to age[79](index=79&type=chunk) - Mr. Li Jin and Mr. Gao Guoqin were appointed as non-independent directors and members of relevant Board committees of the Eleventh Board of Directors[79](index=79&type=chunk) - Mr. Huang Lixin resigned as director, general manager, and member of relevant Board committees due to work adjustment; Mr. Liu Ancang was appointed general manager and nominated as a director candidate[80](index=80&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) [Corporate Governance Practices](index=25&type=section&id=6.1%20Corporate%20Governance%20Practices) Company continuously strengthened and improved corporate governance, establishing a clear and balanced governance structure, complying with the Listing Rules' Corporate Governance Code, and standardizing financial management and internal control - Company has gradually formed a standardized, complete, effective, and suitable corporate governance system for its development, complying with all code provisions of Appendix C1 of the Listing Rules' Corporate Governance Code[81](index=81&type=chunk)[82](index=82&type=chunk) - Company established an Information Disclosure Committee, implemented a regular information disclosure meeting system, and formulated multiple information disclosure related policies to ensure the truthfulness, accuracy, completeness, and timeliness of information disclosure[85](index=85&type=chunk) - Company formulated comprehensive accounting and financial report preparation regulations, strengthened fund management, and completed the design of the "Internal Control Manual" and "Internal Control Assessment Manual" to standardize and regulate internal control[87](index=87&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk) [Directors' Securities Transactions](index=30&type=section&id=6.2%20Directors'%20Securities%20Transactions) Company strictly complied with regulatory restrictions on directors' securities transactions and adopted the standard code in Appendix C3 of the Listing Rules, with no directors, supervisors, or senior management holding company shares or material interests in significant contracts as of the announcement date - Company adopted the standard code in Appendix C3 of the Listing Rules regarding securities transactions by directors of listed issuers, and prohibited insiders from trading securities using inside information[93](index=93&type=chunk) - After specific inquiry with all directors, supervisors, and senior management, as of the announcement date, all directors, supervisors, and senior management held no company shares and had no direct or indirect material interests in any significant contracts[93](index=93&type=chunk) [Board of Directors](index=30&type=section&id=6.3%20Board%20of%20Directors) Company's Board of Directors consists of 15 directors, held 3 meetings during the reporting period with good attendance, regularly reviewing operating performance and making decisions, with independent non-executive directors actively fulfilling their duties - Company's Board of Directors consists of 15 directors (currently one vacancy), including executive directors, non-executive directors, and independent non-executive directors[94](index=94&type=chunk) - During the reporting period, the company's Board of Directors held 3 meetings, including regular and ad-hoc meetings, with all regular meeting notices sent at least fourteen days in advance[94](index=94&type=chunk)[96](index=96&type=chunk) H1 2025 Board Meeting Attendance | Name | Meetings Required to Attend | Meetings Attended in Person | Meetings Attended by Proxy | Attendance Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Wang Kui (Executive Director) | 3 | 3 | 0 | 100% | | Du Daming (Non-executive Director) | 3 | 3 | 0 | 100% | | Xia Qing (Independent Non-executive Director) | 3 | 3 | 0 | 100% | | He Qiang (Independent Non-executive Director) | 3 | 3 | 0 | 100% | | Zhang Liying (Independent Non-executive Director) | 3 | 3 | 0 | 100% | | Dang Ying (Independent Non-executive Director) | 3 | 3 | 0 | 100% | [Chairman and General Manager](index=33&type=section&id=6.4%20Chairman%20and%20General%20Manager) Company's Chairman and General Manager positions are separate, each fulfilling duties according to the Articles of Association, with clear division of responsibilities between the Board and management - Company's Chairman and General Manager positions are separate, each fulfilling duties according to the Articles of Association[98](index=98&type=chunk) [Non-executive Directors](index=33&type=section&id=6.5%20Non-executive%20Directors) Company Board members serve terms not exceeding three years, eligible for re-election, while independent non-executive directors serve a maximum term of six years - Company Board members serve terms not exceeding three years (inclusive) and are eligible for re-election; however, independent non-executive directors serve a maximum term of six years (inclusive) according to relevant CSRC regulations[99](index=99&type=chunk) Non-executive Directors' Terms | Non-executive Director Name | Term | | :--- | :--- | | Du Daming | 2023.12.5-2026 | | Zhou Yi | 2023.12.5-2026 | | Li Lailong | 2023.12.5-2026 | | Li Jin | 2025.6.24-2026 | | Cao Xin | 2023.12.5-2026 | | Gao Guoqin | 2025.6.24-2026 | | Ding Xuchun | 2023.12.5-2026 | | Wang Jianfeng | 2023.12.5-2026 | [Directors' Remuneration](index=33&type=section&id=6.6%20Directors'%20Remuneration) Company's Board of Directors established a Remuneration and Appraisal Committee, comprising seven directors (four independent non-executive), responsible for studying appraisal standards, remuneration policies, and plans for directors and senior management - The Remuneration and Appraisal Committee is primarily responsible for studying appraisal standards for the company's directors and senior management, conducting appraisals, and making recommendations; it is also responsible for studying and reviewing remuneration policies and plans for the company's directors and senior management[101](index=101&type=chunk) - The Eleventh Remuneration and Appraisal Committee consists of seven directors, with Mr. Zhang Shouwen, Mr. He Qiang, Ms. Zhang Liying, and Ms. Dang Ying serving as independent non-executive directors[101](index=101&type=chunk) - The committee meeting held on March 24, 2025, approved the "Report on the Company's 2025 Total Salary Budget"[102](index=102&type=chunk) [Director Nomination](index=34&type=section&id=6.7%20Director%20Nomination) Company's Board of Directors established a Nomination Committee, which follows a Board diversity policy and nominates directors based on merit, responsible for studying selection criteria and procedures for director candidates and senior management - The Nomination Committee is primarily responsible for studying selection criteria and procedures for the company's director candidates and senior management based on the "Company Law" and "Securities Law" requirements for director qualifications and the company's operational management needs, and making recommendations to the Board[104](index=104&type=chunk) - Company formulated a "Board Diversity Policy," considering various aspects of Board diversity, including but not limited to gender, age, cultural and educational background, professional experience, skills, knowledge, and length of service, when determining Board composition[104](index=104&type=chunk) - The Eleventh Board of Directors Nomination Committee currently consists of six directors, with Mr. Xia Qing, Mr. He Qiang, Mr. Zhang Shouwen, and Ms. Dang Ying serving as independent non-executive directors[105](index=105&type=chunk) [Appointment of Auditors](index=35&type=section&id=6.8%20Appointment%20of%20Auditors) BDO Limited and ShineWing Certified Public Accountants (Special General Partnership) were appointed as the company's international and PRC auditors for 2025, respectively - BDO Limited and ShineWing Certified Public Accountants (Special General Partnership) were appointed as the company's international and PRC auditors for 2025, respectively[106](index=106&type=chunk) [Audit Committee](index=35&type=section&id=6.9%20Audit%20Committee) Company's Board of Directors established an Audit Committee, composed of five independent non-executive directors, responsible for overseeing financial statement truthfulness, legal compliance, auditor independence, and related party transaction control - The Audit Committee's primary responsibilities include assisting the Board in overseeing the truthfulness of the company's financial statements, compliance with laws and regulatory requirements, the qualifications and independence of independent auditors, the performance of independent auditors and internal audit department, and the control and management of related party transactions[106](index=106&type=chunk) - The Eleventh Board of Directors Audit Committee consists of five independent non-executive directors, with Ms. Dang Ying serving as the chairperson[107](index=107&type=chunk) - During the reporting period, the Audit Committee held three meetings, gaining understanding and providing opinions and suggestions on the company's compliance with listing regulations, anti-fraud situation, internal control implementation and execution, and external auditor's audit[108](index=108&type=chunk) [Directors' Responsibilities for Financial Statements](index=36&type=section&id=6.10%20Directors'%20Responsibilities%20for%20Financial%20Statements) Company directors confirmed their responsibility for preparing the company's financial statements, ensuring compliance with relevant regulations and accounting standards, and timely publication - Company directors confirmed their responsibility for preparing the company's financial statements, ensuring compliance with relevant regulations and applicable accounting standards, and ensuring timely publication of the company's financial statements[110](index=110&type=chunk) [Shareholding Interests of Senior Management](index=36&type=section&id=6.11%20Shareholding%20Interests%20of%20Senior%20Management) Company's senior management held no company shares - Company's senior management held no company shares[110](index=110&type=chunk) [Strategy Committee](index=37&type=section&id=6.12%20Strategy%20Committee) Company's Board of Directors established a Strategy Committee, comprising six directors (two independent non-executive), responsible for studying long-term development strategic planning, major investment and financing plans, and overall risk management - The Strategy Committee's primary responsibilities include studying the company's long-term development strategic planning, major investment and financing plans, major production and operation decision projects, and being responsible for the company's overall risk management[111](index=111&type=chunk)[116](index=116&type=chunk) - The Eleventh Board of Directors Strategy Committee currently consists of six directors, with Mr. Wang Kui serving as the chairman, and Mr. Xia Qing and Ms. Zhang Liying serving as independent non-executive directors[111](index=111&type=chunk) - During the reporting period, the company's Strategy Committee did not hold any meetings[112](index=112&type=chunk) [Training for Directors and Senior Management](index=37&type=section&id=6.13%20Training%20for%20Directors%20and%20Senior%20Management) Company annually organizes directors and supervisors to attend regulatory training, with 20 participations by directors, supervisors, and senior management in H1, and regularly briefs independent directors on regulatory updates - Company annually organizes directors and supervisors to attend training organized by regulatory bodies; during the reporting period, directors, supervisors, and senior management participated in a total of **20 professional trainings**[113](index=113&type=chunk) - Company arranges its legal advisors to brief all independent directors of the Audit Committee semi-annually on updates to listing place regulatory regulations, applicability of relevant systems, and compliance with listing place regulations[113](index=113&type=chunk) [Review and Litigation](index=37&type=section&id=Review%20and%20Litigation) [Review of Interim Financial Information](index=37&type=section&id=7.1%20Review%20of%20Interim%20Financial%20Information) Company's H1 2025 interim results were reviewed by the Audit Committee and by auditor BDO Limited in accordance with International Standard on Review Engagements 2410 - The 2025 interim results were reviewed by the company's Audit Committee[114](index=114&type=chunk) - The company's auditor, BDO Limited, reviewed the unaudited interim condensed consolidated financial information for the six months ended June 30, 2025, in accordance with International Standard on Review Engagements 2410[114](index=114&type=chunk) [Litigation](index=37&type=section&id=7.2%20Litigation) As of June 30, 2025, the company and its subsidiaries were not involved in any significant litigation, but the Shengtong Rudong Offshore Wind Power Project has a ship collision damage liability dispute, with a claim amount of approximately **RMB 0.703 billion**, for which a provision of **RMB 0.070 billion** is maintained due to a retrial application - As of June 30, 2025, the company and its subsidiaries were not involved in any significant litigation or arbitration[115](index=115&type=chunk) - The Shengtong Rudong Offshore Wind Power Project has a ship collision damage liability dispute, with a claim amount of approximately **RMB 0.703 billion**, for which Shengtong Rudong made a provision for contingent liabilities of **RMB 0.070 billion** in 2023[284](index=284&type=chunk)[285](index=285&type=chunk) - In September 2024, the Shanghai High People's Court upheld the original judgment in the second instance; however, in May 2025, Shengtong Rudong received a retrial application for the lawsuit, considering the case still highly uncertain, and thus did not reverse the provision for contingent liabilities[285](index=285&type=chunk) [Documents Available for Inspection](index=38&type=section&id=Documents%20Available%20for%20Inspection) Documents available for inspection for this interim results report can be obtained at the company's designated addresses in China and Hong Kong or on the company's website - Regarding the 2025 interim results report, it can be obtained at designated addresses or by visiting the company's website[117](index=117&type=chunk) [Independent Auditor's Report](index=39&type=section&id=Independent%20Auditor's%20Report) BDO Limited reviewed the company's interim condensed consolidated financial information for the six months ended June 30, 2025, in accordance with International Standard on Review Engagements 2410, and found no matters indicating non-compliance with IAS 34 in all material respects - The auditor reviewed the interim condensed consolidated financial information in accordance with International Standard on Review Engagements 2410[120](index=120&type=chunk) - The auditor found no matters leading them to believe that the interim condensed consolidated financial information was not prepared in all material respects in accordance with International Accounting Standard 34[121](index=121&type=chunk) - The comparative interim condensed consolidated statements of comprehensive income, changes in equity, and cash flows for the six months ended June 30, 2024, and the comparative interim condensed consolidated statement of financial position as of December 31, 2024, were extracted from financial statements reviewed or audited by other auditors[122](index=122&type=chunk) [Interim Condensed Consolidated Financial Statements](index=41&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Financial Position (Unaudited)](index=41&type=section&id=10.1%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were **RMB 602.552 billion**, with non-current assets accounting for approximately **83.87%**, and total liabilities were **RMB 384.280 billion**, with equity attributable to equity holders of **RMB 148.305 billion** Interim Condensed Consolidated Statement of Financial Position | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Assets | 602,551,621 | 595,576,880 | | Total Non-current Assets | 505,379,735 | 499,277,225 | | Total Current Assets | 97,171,886 | 96,299,655 | | Total Equity | 218,272,083 | 210,579,046 | | Total Liabilities | 384,279,538 | 384,997,834 | | Total Non-current Liabilities | 213,858,155 | 206,259,767 | | Total Current Liabilities | 170,421,383 | 178,738,067 | [Interim Condensed Consolidated Statement of Comprehensive Income (Unaudited)](index=44&type=section&id=10.2%20Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) H1 2025 operating revenue was **RMB 112.032 billion**, net profit was **RMB 12.617 billion**, and net profit attributable to equity holders was **RMB 9.578 billion**, with basic and diluted earnings per share of **RMB 0.52** Interim Condensed Consolidated Statement of Comprehensive Income | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Operating Revenue | 112,032,083 | 118,805,858 | | Total Operating Costs and Expenses | (93,306,489) | (103,412,032) | | Operating Profit | 17,620,511 | 14,494,248 | | Profit Before Tax | 15,005,332 | 11,376,144 | | Net Profit | 12,617,492 | 9,430,464 | | Net Profit Attributable to Equity Holders of the Company | 9,577,971 | 7,774,991 | | Basic and Diluted Earnings Per Share | RMB 0.52 | RMB 0.40 | [Interim Condensed Consolidated Statement of Changes in Equity (Unaudited)](index=47&type=section&id=10.3%20Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, total equity attributable to equity holders of the company was **RMB 148.305 billion**, an increase from the beginning of the year, driven by current period profit, foreign currency translation differences, and issuance of other equity instruments Interim Condensed Consolidated Statement of Changes in Equity | Item | Balance as of June 30, 2025 (RMB thousand) | Balance as of Jan 1, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Equity Attributable to Equity Holders of the Company | 148,305,158 | 138,763,115 | | Non-controlling Interests | 69,966,925 | 40,591,363 | | Total Equity | 218,272,083 | 179,354,478 | - For the six months ended June 30, 2025, total comprehensive income attributable to equity holders of the company was **RMB 9.987 billion**[140](index=140&type=chunk) - 2024 dividends paid amounted to **RMB 4.238 billion**[140](index=140&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows (Unaudited)](index=49&type=section&id=10.4%20Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) H1 2025 net cash generated from operating activities was **RMB 30.748 billion** (up 30.27%), with net cash used in investing activities of **RMB 21.803 billion**, and net cash outflow from financing activities of **RMB 5.760 billion** due to increased debt repayment Interim Condensed Consolidated Statement of Cash Flows | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 30,748,225 | 23,602,936 | | Net Cash Used in Investing Activities | (21,803,350) | (21,553,650) | | Net Cash (Used in)/Generated from Financing Activities | (5,760,078) | 1,980,766 | | Net Increase in Cash and Cash Equivalents | 3,345,896 | 4,176,107 | | Cash and Cash Equivalents Balance at Period End | 21,947,002 | 20,326,742 | - Net cash inflow from operating activities increased by **30.27%** YoY, mainly due to the combined effect of decreased revenue and reduced fuel procurement expenditures[45](index=45&type=chunk) - Net cash outflow from financing activities was **RMB 5.760 billion**, mainly due to the company's operating profits and increased debt repayment[45](index=45&type=chunk) [Notes to the Unaudited Interim Condensed Consolidated Financial Information](index=52&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Information) [Company Organization and Principal Activities](index=52&type=section&id=11.1%20Company%20Organization%20and%20Principal%20Activities) Huaneng Power International, Inc. primarily engages in power generation and electricity sales in China, Singapore, and Pakistan, with its registered address changed to Xiong'an New Area, Hebei - The company and its subsidiaries primarily engage in power generation and electricity sales in China, the Republic of Singapore, and the Islamic Republic of Pakistan[150](index=150&type=chunk) - The company's registered address changed from Huaneng Building, No. 6 Fuxingmennei Street, Xicheng District, Beijing, China, to Huaneng Headquarters, Xiong'an New Area, Hebei[150](index=150&type=chunk) - The directors consider the company's parent company and ultimate parent company to be Huaneng Power International Development Company and China Huaneng Group Co., Ltd., respectively[150](index=150&type=chunk) [Basis of Preparation](index=52&type=section&id=11.2%20Basis%20of%20Preparation) This interim financial information was prepared in accordance with the Hong Kong Stock Exchange Listing Rules and International Accounting Standard 34, consistent with 2024 accounting policies, and despite net current liabilities of **RMB 73.249 billion**, directors believe the company can continue as a going concern due to ample bank credit lines - This interim financial information was prepared in accordance with the applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules and complies with International Accounting Standard 34 "Interim Financial Reporting"[151](index=151&type=chunk) - Except for the application of revised International Financial Reporting Standards effective January 1, 2025, the accounting policies adopted for preparing this interim financial data are consistent with those used for the 2024 annual financial statements[151](index=151&type=chunk) - As of June 30, 2025, the Group's net current liabilities were approximately **RMB 73.249 billion**; considering the Group has obtained unutilized bank credit lines exceeding **RMB 420 billion**, the company's directors believe the Group can repay debts due within the next 12 months, and prepared this interim financial information on a going concern basis[152](index=152&type=chunk) [Significant Accounting Policies](index=53&type=section&id=11.3%20Significant%20Accounting%20Policies) Accounting policies used to prepare this interim condensed consolidated financial statements are consistent with those used for the 2024 annual financial statements, with the first-time adoption of amendments to IAS 21 "Lack of Exchangeability" having no significant impact - Accounting policies used to prepare this interim condensed consolidated financial statements are consistent with those used to prepare the Group's annual financial statements for the year ended December 31, 2024, except for the first-time adoption of amendments to IAS 21 "Lack of Exchangeability" this period[153](index=153&type=chunk)[154](index=154&type=chunk) - These amendments had no significant impact on the Group's interim condensed consolidated financial statements[154](index=154&type=chunk) [Operating Revenue and Segment Information](index=54&type=section&id=11.4%20Operating%20Revenue%20and%20Segment%20Information) Company's operating revenue primarily comes from electricity and heat sales, with total revenue of **RMB 112.032 billion** in H1 2025, and China domestic business contributing the vast majority of revenue and non-current assets [Disaggregation of Operating Revenue](index=54&type=section&id=11.4.1%20Disaggregation%20of%20Operating%20Revenue) Company's H1 2025 total revenue was **RMB 112.032 billion**, primarily from electricity and heat sales, with the China Power segment contributing most of the revenue H1 2025 Operating Revenue by Type | Revenue Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Electricity and Heat Sales Revenue | 107,875,355 | 114,888,975 | | Coal and Raw Material Sales Revenue | 579,977 | 725,323 | | Port Services (External) | 103,406 | 122,941 | | Transportation Services (External) | 47,632 | 30,330 | | Lease Income | 653,215 | 729,116 | | Other | 2,772,498 | 2,309,173 | | Total | 112,032,083 | 118,805,858 | - Revenue from electricity and heat sales, and coal and raw material sales is recognized at the point control of goods is transferred, while revenue from port services, transportation services, maintenance services, and heating pipeline services is recognized over the service period, and lease income is recognized over the lease term[157](index=157&type=chunk) [Segment Information](index=55&type=section&id=11.4.2%20Segment%20Information) Company's operating segments include China Power, Overseas Power, and Other segments, with the China Power segment dominating in total revenue and segment assets, and State Grid Shandong Electric Power Company being a major customer - The company's operating segments are classified into China Power segment, Overseas Power segment, and Other segments (primarily including port and transportation businesses)[158](index=158&type=chunk) H1 2025 Segment Performance | Item | China Power Segment (RMB thousand) | Overseas Power Segment (RMB thousand) | Other Segments (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | H1 2025 External Transaction Revenue | 100,139,540 | 11,739,207 | 153,336 | 112,032,083 | | June 30, 2025 Segment Assets | 535,700,425 | 42,450,829 | 10,756,919 | 588,908,173 | H1 2025 Revenue and Non-current Assets by Region | Region | H1 2025 External Transaction Revenue (RMB thousand) | June 30, 2025 Non-current Assets (RMB thousand) | | :--- | :--- | :--- | | China | 100,292,876 | 471,739,628 | | Overseas | 11,739,207 | 23,188,629 | - For the six months ended June 30, 2025, the Group's revenue from grid companies under the common control of State Grid Corporation of China accounted for approximately **66%** of total revenue from external customers (H1 2024: **77%**); State Grid Shandong Electric Power Company accounted for **12%** of total revenue from external customers[173](index=173&type=chunk) [Property, Plant and Equipment](index=63&type=section&id=11.5%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the carrying amount of the company's property, plant and equipment was **RMB 406.889 billion**, with impairment losses of **RMB 0.254 billion** recognized in H1 due to unit shutdowns or conversion to emergency standby plans Property, Plant and Equipment Summary | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Balance at Period/Year End | 406,888,506 | 402,936,461 | | Depreciation Provided | (12,862,233) | (25,392,315) | | Impairment Provision | (254,682) | (1,610,720) | - For the six months ended June 30, 2025, impairment losses on property, plant and equipment amounted to **RMB 254 million**, mainly involving Huaneng Qufu Thermal Power Co., Ltd. (**RMB 117 million**) and Huaneng Power International, Inc. Shang'an Power Plant (**RMB 137 million**)[177](index=177&type=chunk) - Two units of Qufu Thermal Power are expected to be shut down by April 2026, and Shang'an Power Plant plans to shut down its Phase I units by 2027 and convert Phase II units to emergency standby, leading to impairment indicators for the asset group[180](index=180&type=chunk)[188](index=188&type=chunk) [Financial Instruments](index=72&type=section&id=11.6%20Financial%20Instruments) Company's financial instruments measured at fair value include derivative instruments (Level 2) and other equity instrument investments (Level 3), with total fair value of financial assets at **RMB 0.627 billion** and financial liabilities at **RMB 1.139 billion** as of June 30, 2025 Fair Value Hierarchy of Financial Instruments | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | – | 35,860 | 590,920 | 626,780 | | Total Liabilities | – | 1,139,266 | – | 1,139,266 | - Financial instruments classified as Level 2 include foreign exchange forward contracts, fuel swap contracts, and interest rate swap contracts; financial instruments classified as Level 3 include other equity instrument investments[202](index=202&type=chunk)[203](index=203&type=chunk) - As of June 30, 2025, the fair values of long-term borrowings and long-term bonds (both including current portion) were approximately **RMB 186.77 billion** and **RMB 48.40 billion**, respectively, largely consistent with their carrying amounts[208](index=208&type=chunk) [Goodwill](index=75&type=section&id=11.7%20Goodwill) As of June 30, 2025, the company's net carrying amount of goodwill was **RMB 15.030 billion**, an increase from the beginning of the year, mainly due to foreign currency translation differences Goodwill Carrying Amount | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Carrying Amount of Goodwill | 15,030,364 | 14,389,046 | - Changes in the net carrying amount of goodwill were mainly affected by foreign currency translation differences[209](index=209&type=chunk) [Other Non-current Assets](index=76&type=section&id=11.8%20Other%20Non-current%20Assets) As of June 30, 2025, the company's total other non-current assets were **RMB 22.645 billion**, mainly including finance lease receivables, input VAT to be deducted, prepaid construction costs, and intangible assets Other Non-current Assets Breakdown | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance Lease Receivables | 6,517,171 | 7,115,271 | | Input VAT to be Deducted | 9,100,591 | 8,976,289 | | Prepaid Construction Costs | 1,346,819 | 1,068,630 | | Intangible Assets | 935,248 | 832,572 | | Total | 22,644,937 | 22,345,178 | [Other Receivables and Assets](index=77&type=section&id=11.9%20Other%20Receivables%20and%20Assets) As of June 30, 2025, the company's net other receivables and assets were **RMB 13.381 billion**, a decrease from the beginning of the year, primarily comprising prepaid purchases, dividends receivable, input VAT to be deducted, and finance lease receivables Other Receivables and Assets Breakdown | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepaid Purchases | 3,022,780 | 4,453,979 | | Dividends Receivable | 346,442 | 241,970 | | Input VAT to be Deducted | 4,172,143 | 4,593,354 | | Finance Lease Receivables | 1,060,652 | 1,049,887 | | Total Net Amount | 13,380,727 | 14,546,074 | [Trade and Bills Receivables](index=78&type=section&id=11.10%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, the company's net trade and bills receivables were **RMB 49.506 billion**, with most receivables due within 1 year and bills receivable maturing within 1 to 12 months Trade and Bills Receivables Summary | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 49,236,809 | 47,802,397 | | Bills Receivables | 418,344 | 419,949 | | Less: Provision for Bad Debts | 149,374 | 149,122 | | Total | 49,505,779 | 48,073,224 | Ageing of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 Year | 48,766,031 | 46,977,508 | | 1 to 2 Years | 279,596 | 401,481 | | 2 to 3 Years | 245,336 | 588,608 | | Over 3 Years | 364,190 | 254,749 | [Dividends on Ordinary Shares and Cumulative Distributions on Other Equity Instruments](index=79&type=section&id=11.11%20Dividends%20on%20Ordinary%20Shares%20and%20Cumulative%20Distributions%20on%20Other%20Equity%20Instruments) Company declared a 2024 cash dividend of **RMB 0.27** per ordinary share, totaling **RMB 4.238 billion**, and reported H1 net profit attributable to other eq

Glossary [Glossary](index=4&type=section&id=GLOSSARY) This section provides definitions of key terms and abbreviations used in the report, aiming to ensure consistent understanding of the report's content Corporate Information [Board of Directors](index=8&type=section&id=BOARD%20OF%20DIRECTORS) This section lists the composition of the company's Board of Directors, including the names of executive and independent non-executive directors and their roles in board committees - Executive Directors include Mr. Liu Guoqing (Chairman and Chief Executive Officer), Mr. Liu Jiaqiang, Mr. Li Dongpo (Chief Financial Officer), and Ms. Huang Huizhu (appointed on November 29, 2024)[16](index=16&type=chunk)[17](index=17&type=chunk) - Independent Non-executive Directors include Mr. Tian Zhiyuan, Mr. Wang Luping, and Mr. Gao Jizhong[16](index=16&type=chunk)[17](index=17&type=chunk) [Board Committees](index=8&type=section&id=BOARD%20COMMITTEES) This section details the membership and chairpersons of the company's Audit Committee, Remuneration Committee, and Nomination Committee under the Board of Directors - The Audit Committee is chaired by Mr. Tian Zhiyuan, with members including Mr. Wang Luping and Mr. Gao Jizhong[16](index=16&type=chunk)[17](index=17&type=chunk) - The Remuneration Committee is chaired by Mr. Tian Zhiyuan, with members including Mr. Liu Guoqing and Mr. Wang Luping[16](index=16&type=chunk)[17](index=17&type=chunk) - The Nomination Committee is chaired by Mr. Gao Jizhong (appointed on June 25, 2025), with members including Mr. Tian Zhiyuan and Ms. Huang Huizhu (appointed on June 25, 2025). Mr. Liu Guoqing resigned as former chairman on June 25, 2025[17](index=17&type=chunk)[18](index=18&type=chunk) [Company Secretary](index=8&type=section&id=COMPANY%20SECRETARY) This section discloses the appointment and resignation of the company secretary - Mr. Guo Zhaowen was appointed as company secretary on May 26, 2025, and Ms. Dong Yingyi resigned on the same day[18](index=18&type=chunk) [Authorised Representatives](index=9&type=section&id=AUTHORISED%20REPRESENTATIVES) This section lists the company's authorized representatives - Authorized representatives are Mr. Liu Guoqing and Mr. Guo Zhaowen (appointed on May 26, 2025). Ms. Dong Yingyi resigned on May 26, 2025[19](index=19&type=chunk) [Independent Auditor](index=9&type=section&id=INDEPENDENT%20AUDITOR) This section identifies the company's independent auditor - The company's independent auditor is Fan Chan & Co. Limited[19](index=19&type=chunk) [Principal Bankers](index=9&type=section&id=PRINCIPAL%20BANKERS) This section lists the company's principal bankers - Principal bankers include Bank of China (Hong Kong) Limited, DBS Bank (Hong Kong) Limited, Hang Seng Bank Limited, and The Hongkong and Shanghai Banking Corporation Limited[19](index=19&type=chunk) [Headquarters and Principal Place of Business in Hong Kong](index=9&type=section&id=HEADQUARTERS%20AND%20PRINCIPAL%20PLACE%20OF%20BUSINESS%20IN%20HONG%20KONG) This section provides information on the company's headquarters and principal place of business in Hong Kong - The company's headquarters and principal place of business in Hong Kong are located at Room 4801, 48th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong[20](index=20&type=chunk) [Registered Office](index=9&type=section&id=REGISTERED%20OFFICE) This section provides information on the company's registered office - The company's registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands[20](index=20&type=chunk) [Principal Share Registrar and Transfer Office in the Cayman Islands](index=10&type=section&id=PRINCIPAL%20SHARE%20REGISTRAR%20AND%20TRANSFER%20OFFICE%20IN%20THE%20CAYMAN%20ISLANDS) This section lists the company's principal share registrar and transfer office in the Cayman Islands - The principal share registrar and transfer office in the Cayman Islands is Conyers Trust Company (Cayman) Limited[21](index=21&type=chunk) [Hong Kong Branch Share Registrar and Transfer Office](index=10&type=section&id=HONG%20KONG%20BRANCH%20SHARE%20REGISTRAR%20AND%20TRANSFER%20OFFICE) This section lists the company's branch share registrar and transfer office in Hong Kong - The Hong Kong branch share registrar and transfer office is Boardroom Share Registrars (HK) Limited, located at Room 2103B, 21st Floor, 148 Electric Road, North Point, Hong Kong[22](index=22&type=chunk) [Company's Website](index=10&type=section&id=COMPANY%27S%20WEBSITE) This section provides the company's official website address - The company's website is www.prosperoneintl.com[22](index=22&type=chunk) [Listing Information](index=10&type=section&id=LISTING%20INFORMATION) This section provides the company's listing-related information - The company is listed on the Main Board of the Stock Exchange, with stock code **1470** and board lot size of **4,000 shares**[22](index=22&type=chunk) Chairman's Statement [Business Review](index=11&type=section&id=BUSINESS%20REVIEW) The Chairman's report reviews the challenging operating environment of the year, noting stagnation and significant decline in wholesale and export businesses, but growth driven by successful expansion into compound fertilizer manufacturing and sales, alongside cost control measures - The operating environment this year was challenging, with stagnant wholesale sales, a significant reduction in export trade volume, and a downward trend in fertilizer prices[24](index=24&type=chunk)[27](index=27&type=chunk) - Compound fertilizer trade volume decreased by approximately **45.4%** year-on-year to **26,760 tonnes**, and urea export volume significantly decreased by approximately **94.3%** year-on-year to **5,003 tonnes**[25](index=25&type=chunk)[28](index=28&type=chunk) - Since October 2023, the Group successfully expanded into compound fertilizer manufacturing and sales, producing **27,486 tonnes** and selling **26,339 tonnes** during the year, driving revenue growth[24](index=24&type=chunk)[30](index=30&type=chunk)[33](index=33&type=chunk) - The Group implemented a series of measures to control operating costs, including reducing staff costs[24](index=24&type=chunk)[27](index=27&type=chunk) [Financial Results](index=12&type=section&id=FINANCIAL%20RESULTS) This section outlines the company's financial performance for the year, showing significant growth in both total revenue and profit attributable to owners of the company Key Financial Performance Comparison | Indicator | Current Year (HK$ million) | 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 77.2 | 71.9 | +5.3 | +7.4% | | Profit attributable to owners of the company | 5.4 | 1.3 | +4.1 | +315.4% | [Prospects](index=13&type=section&id=PROSPECTS) The company anticipates continued growth in domestic fertilizer demand, with prices fluctuating due to raw materials and environmental policies, and plans to strengthen production management, develop eco-friendly fertilizers, and optimize sales channels - Domestic fertilizer demand is expected to continue growing, with prices fluctuating based on raw material costs and seasonal factors[36](index=36&type=chunk)[38](index=38&type=chunk) - Strict implementation of environmental policies may increase fertilizer production costs and prices[36](index=36&type=chunk)[38](index=38&type=chunk) - Export policies are not expected to ease in the short term, impacting export business performance[36](index=36&type=chunk)[38](index=38&type=chunk) - The Group will continue to strengthen production management, develop more environmentally friendly and energy-efficient production models, provide high-quality and efficient fertilizer products, and optimize product sales channels[36](index=36&type=chunk)[38](index=38&type=chunk) [Appreciation](index=13&type=section&id=APPRECIATION) The Chairman, on behalf of the Board, extends sincere gratitude to board members, management, staff, shareholders, suppliers, customers, and other business partners for their hard work, dedication, trust, and support during a challenging year - The Chairman thanks the Board members, management, and staff for their tireless work and dedication during a challenging year[37](index=37&type=chunk)[39](index=39&type=chunk) - The Chairman expresses gratitude to shareholders, suppliers, customers, and other business partners for their continued trust and support[37](index=37&type=chunk)[39](index=39&type=chunk) Management Discussion and Analysis [Financial Review](index=14&type=section&id=FINANCIAL%20REVIEW) This section analyzes the company's financial performance for the year, including changes in revenue, cost of sales, gross profit, and operating expenses, highlighting how growth in the compound fertilizer business offset declines in other segments and improved overall profitability through effective cost control Revenue Composition and Change | Business Segment | Current Year (HK$ million) | 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trading Business | 18.0 | 39.1 | -21.1 | -54.0% | | Watch Wholesale Business | 1.2 | 1.8 | -0.6 | -33.3% | | Compound Fertilizer Manufacturing and Sales | 58.1 | 31.0 | +27.1 | +87.4% | | **Total Revenue** | **77.2** | **71.9** | **+5.3** | **+7.4%** | Cost of Sales and Gross Profit Change | Indicator | Current Year (HK$ million) | 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 54.9 | 30.4 | +24.5 | +80.6% | | Compound Fertilizer Cost of Sales | 54.6 | 28.8 | +25.8 | +89.6% | | Total Gross Profit | 22.4 | 41.5 | -19.1 | -46.0% | - Selling and distribution costs decreased by approximately **HK$11.7 million (55.5%)**, primarily due to a significant reduction in freight costs resulting from a sharp decrease in export trade volume[47](index=47&type=chunk)[51](index=51&type=chunk) - Administrative expenses decreased by approximately **HK$9.9 million (55.0%)**, mainly due to reduced financial advisory fees, directors' emoluments, and administrative staff salaries and allowances[48](index=48&type=chunk)[52](index=52&type=chunk) - Finance costs decreased by approximately **HK$162,000**, attributed to lower finance costs for lease liabilities[49](index=49&type=chunk)[53](index=53&type=chunk) Profit Before Tax and Profit Attributable to Owners of the Company Change | Indicator | Current Year (HK$ million) | 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Profit Before Tax | 6.9 | 4.5 | +2.4 | +53.3% | | Profit attributable to owners of the company | 5.4 | 1.3 | +4.1 | +315.4% | [Financial Position](index=16&type=section&id=FINANCIAL%20POSITION) This section outlines the company's financial position, including funding sources, cash and cash equivalents, current ratio, and gearing ratio, indicating a healthy net cash position - Primary funding sources are cash inflows from operating activities and loans from the ultimate holding company[55](index=55&type=chunk)[60](index=60&type=chunk) - As at April 30, 2025, total cash and cash equivalents were approximately **HK$127.1 million** (2024: approximately **HK$65.8 million**)[56](index=56&type=chunk)[60](index=60&type=chunk) - The current ratio remained at approximately **1.1 times** in both 2025 and 2024[56](index=56&type=chunk)[60](index=60&type=chunk) - The gearing ratio is not applicable as the Group maintains a net cash position[56](index=56&type=chunk)[60](index=60&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=16&type=section&id=MATERIAL%20ACQUISITIONS%20AND%20DISPOSALS%20OF%20SUBSIDIARIES%2C%20ASSOCIATES%20AND%20JOINT%20VENTURES) This section confirms that the company did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year - During the year, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[57](index=57&type=chunk)[61](index=61&type=chunk) [Employees and Remuneration Policies](index=16&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICIES) This section provides information on the company's employee count and remuneration costs, outlining its compensation policies, including share option schemes, to attract and retain talent - As at April 30, 2025, the Group had **57 employees** (2024: **62 employees**)[58](index=58&type=chunk)[62](index=62&type=chunk) - Total staff costs for the year were approximately **HK$9.7 million** (2024: approximately **HK$18.7 million**)[58](index=58&type=chunk)[62](index=62&type=chunk) - The company reviews employee performance annually and determines remuneration based on market norms, individual qualifications, experience, and performance[58](index=58&type=chunk)[62](index=62&type=chunk) - The company has adopted a share option scheme, but as of the annual report date, no outstanding share options have been granted under the scheme[59](index=59&type=chunk)[62](index=62&type=chunk) [Debts and Charge on Assets](index=17&type=section&id=DEBTS%20AND%20CHARGE%20ON%20ASSETS) This section confirms that the company had no bank borrowings, foreign exchange contracts, interest or currency swaps, or bank financing at the end of the reporting period - As at April 30, 2025 and 2024, the Group had no bank borrowings[63](index=63&type=chunk)[70](index=70&type=chunk) - As at April 30, 2025 and 2024, the Group had no foreign exchange contracts, interest or currency swaps, or other financial derivative instruments[64](index=64&type=chunk)[70](index=70&type=chunk) - As at April 30, 2025 and 2024, the Group had no bank financing for overdrafts and loans[65](index=65&type=chunk)[70](index=70&type=chunk) [Foreign Currency](index=17&type=section&id=FOREIGN%20CURRENCY) This section states that the company currently has no significant foreign exchange risk and has not implemented a hedging policy, but management will consider hedging when necessary - The Group has no significant foreign exchange risk and currently has no foreign exchange hedging policy in place[66](index=66&type=chunk)[71](index=71&type=chunk) - Management will consider hedging significant foreign exchange risks when necessary[66](index=66&type=chunk)[71](index=71&type=chunk) [Future Plans for Material Investments and Capital Assets](index=17&type=section&id=FUTURE%20PLANS%20FOR%20MATERIAL%20INVESTMENTS%20AND%20CAPITAL%20ASSETS) This section confirms that the company had no significant investment and capital asset plans at the end of the reporting period - As at April 30, 2025, the Group had no plans for any material investments and capital assets (2024: nil)[67](index=67&type=chunk)[72](index=72&type=chunk) [Significant Investment Held](index=17&type=section&id=SIGNIFICANT%20INVESTMENT%20HELD) This section confirms that the company held no significant equity investments other than subsidiaries at the end of the reporting period - As at April 30, 2025, the company held no significant equity investments in any company (other than its subsidiaries) (2024: nil)[68](index=68&type=chunk)[73](index=73&type=chunk) [Capital Commitments](index=17&type=section&id=CAPITAL%20COMMITMENTS) This section discloses the company's capital commitments at the end of the reporting period - As at April 30, 2025, the Group had no material capital commitments (2024: **HK$541,000**)[69](index=69&type=chunk)[74](index=74&type=chunk) [Contingent Liabilities](index=18&type=section&id=CONTINGENT%20LIABILITIES) This section confirms that the company had no significant contingent liabilities at the end of the reporting period - As at April 30, 2025, the Group had no material contingent liabilities (2024: nil)[75](index=75&type=chunk)[77](index=77&type=chunk) [Final Dividend](index=18&type=section&id=FINAL%20DIVIDEND) This section states that the Board of Directors does not recommend the payment of a final dividend for the current year - The Board has resolved not to recommend the payment of any final dividend for the current year (2024: nil)[76](index=76&type=chunk)[78](index=78&type=chunk) Biographical Details of Directors [Executive Directors](index=19&type=section&id=EXECUTIVE%20DIRECTORS) This section provides detailed personal backgrounds, educational experiences, professional qualifications, and current roles and responsibilities of the company's executive directors within the company and Ruixing Group - Mr. Liu Guoqing (aged **54**) has served as Executive Director, Chief Executive Officer, and Chairman since April 10, 2024, with over **ten years** of financial management experience[79](index=79&type=chunk)[83](index=83&type=chunk) - Mr. Liu Jiaqiang (aged **52**) has served as Executive Director since September 7, 2017, with over **25 years** of work experience, including **15 years** in management positions[81](index=81&type=chunk)[84](index=84&type=chunk) - Mr. Li Dongpo (aged **52**) has served as Executive Director since December 10, 2021, and was appointed Chief Financial Officer on April 10, 2024, with over **25 years** of experience in agricultural fertilizer and biochemical product sales and manufacturing[82](index=82&type=chunk)[85](index=85&type=chunk) - Ms. Huang Huizhu (aged **38**) was appointed Executive Director on November 29, 2024, with experience in marketing and financial services[87](index=87&type=chunk)[91](index=91&type=chunk) [Independent Non-executive Directors](index=20&type=section&id=INDEPENDENT%20NON-EXECUTIVE%20DIRECTORS) This section provides detailed personal backgrounds, educational experiences, professional qualifications, and current roles and responsibilities of the company's independent non-executive directors within the company and related fields - Mr. Tian Zhiyuan (aged **54**) has served as an Independent Non-executive Director since September 20, 2017, also chairing the Remuneration Committee and Audit Committee, with over **25 years** of accounting and auditing experience[88](index=88&type=chunk)[92](index=92&type=chunk) - Mr. Wang Luping (aged **56**) has served as an Independent Non-executive Director since December 27, 2018, with over **30 years** of legal professional experience[93](index=93&type=chunk)[95](index=95&type=chunk) - Mr. Gao Jizhong (aged **52**) was re-appointed as an Independent Non-executive Director on February 15, 2024, and chairs the Nomination Committee, holding a Chinese lawyer qualification[94](index=94&type=chunk)[96](index=96&type=chunk) Corporate Governance Report [Corporate Governance Practices](index=22&type=section&id=CORPORATE%20GOVERNANCE%20PRACTICES) The company is committed to safeguarding shareholder value through sound corporate governance practices, having adopted and complied with the principles of the Corporate Governance Code, with a few exceptions - The company has adopted and complied with all applicable provisions of the Corporate Governance Code, except for Code Provisions C.5.1 (Board meeting frequency), C.2.1 (Separation of Chairman and Chief Executive roles), and F.2.2 (Independent Auditor attendance at AGM)[100](index=100&type=chunk)[103](index=103&type=chunk) [Securities Transactions by Directors](index=22&type=section&id=SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors confirmed compliance with it during the year - The company has adopted the Model Code as the code of conduct for directors' securities transactions[101](index=101&type=chunk)[104](index=104&type=chunk) - All directors confirmed compliance with the Model Code throughout the year[101](index=101&type=chunk)[104](index=104&type=chunk) [Board of Directors](index=23&type=section&id=BOARD%20OF%20DIRECTORS) This section elaborates on the Board's responsibilities, composition, independence, director induction and continuous professional development, meeting frequency and attendance, reasons for combining Chairman and CEO roles, and implementation of the board diversity policy - The Board is primarily responsible for overseeing the management and overall performance of the Group's business affairs, and for formulating business plans and strategies, and determining significant financial and operational matters[105](index=105&type=chunk)[108](index=108&type=chunk) - As at April 30, 2025, the Board comprised **7 directors**, with independent non-executive directors constituting more than one-third of the Board members, meeting Listing Rules requirements[110](index=110&type=chunk)[113](index=113&type=chunk) - All independent non-executive directors have provided written confirmation of their independence, and the company considers them all to be independent[114](index=114&type=chunk)[117](index=117&type=chunk) - During the year, **2 regular Board meetings** and **1 other Board meeting** were held; while not held quarterly, sufficient measures were taken to ensure effective communication among directors[127](index=127&type=chunk) - Mr. Liu Guoqing serves as both Chairman and Chief Executive Officer, which the Board believes is in the Group's best interest, but the company will seek suitable candidates to comply with Code requirements[129](index=129&type=chunk)[133](index=133&type=chunk) - The company has adopted a Board Diversity Policy, considering factors such as gender, age, cultural and educational background, and professional experience, and reviews its effectiveness annually[130](index=130&type=chunk)[131](index=131&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - As at April 30, 2025, the gender ratio of the Group's employees (including senior management) was **86% male** and **14% female**[136](index=136&type=chunk)[138](index=138&type=chunk) [Responsibilities](index=23&type=section&id=Responsibilities) The Board is responsible for overseeing the Group's business management and overall performance, formulating business plans and strategies, and ensuring financial and human resources support to achieve company objectives - The Board is primarily responsible for supervising and overseeing the management of the Group's business affairs and overall performance[105](index=105&type=chunk)[108](index=108&type=chunk) - Board functions include formulating business plans and strategies, deciding on significant financial and operational matters, and developing, monitoring, and reviewing corporate governance practices[105](index=105&type=chunk)[108](index=108&type=chunk) [Composition](index=23&type=section&id=Composition) The Board strives to maintain a balanced composition of executive and independent non-executive directors to ensure a high degree of independence. As at April 30, 2025, the Board comprised seven directors, with the number of independent non-executive directors meeting Listing Rules requirements - As at April 30, 2025, the Board comprised **seven directors**, with the total number of independent non-executive directors accounting for more than one-third of the Board members[110](index=110&type=chunk) - Independent non-executive directors bring profound operational and financial expertise, experience, and independent judgment to the Board[112](index=112&type=chunk)[117](index=117&type=chunk) - The company has received written confirmations of independence from each independent non-executive director and considers all independent non-executive directors to be independent[114](index=114&type=chunk)[117](index=117&type=chunk) [Directors' Induction and Continuing Professional Development](index=25&type=section&id=DIRECTORS%27%20INDUTION%20AND%20CONTINUING%20PROFESSIONAL%20DEVELOPMENT) The company provides comprehensive induction for new directors and encourages all directors to participate in continuous professional development to ensure they possess the latest knowledge and skills required to fulfill their duties - The company provides formal, comprehensive, and tailored induction for new directors to ensure they understand the company's operations and directors' responsibilities[118](index=118&type=chunk)[121](index=121&type=chunk) - All directors should participate in continuous professional development to develop and update their knowledge and skills, ensuring their contributions to the Board remain informed and relevant[120](index=120&type=chunk)[122](index=122&type=chunk) - Directors' continuous professional development includes attending training courses, reading materials related to economics, business, corporate governance, and newspapers and periodicals[123](index=123&type=chunk)[126](index=126&type=chunk) [Meetings of the Board and the Shareholders and Directors' Attendance Records](index=26&type=section&id=MEETINGS%20OF%20THE%20BOARD%20AND%20THE%20SHAREHOLDERS%20AND%20DIRECTORS%27%20ATTENDANCE%20RECORDS) During the year, the company held two regular Board meetings and one other Board meeting, and passed several resolutions by written resolution. Despite not holding quarterly meetings, measures were taken to ensure effective communication among directors. The report also provides attendance records for Board meetings and the Annual General Meeting - During the year, **two regular Board meetings** and **one other Board meeting** were held, and several resolutions were passed by circulating written resolutions[127](index=127&type=chunk) - Given the relatively simple nature of the Group's business, Board meetings were not held quarterly during the year, but adequate measures were taken to ensure effective communication among directors[127](index=127&type=chunk) Board Meeting and 2024 Annual General Meeting Attendance Records | Director Name | Board Meetings (Attended/Eligible to Attend) | 2024 Annual General Meeting (Attended/Eligible to Attend) | | :--- | :--- | :--- | | Mr. Liu Guoqing | 2/3 | 0/1 | | Mr. Liu Jiaqiang | 3/3 | 1/1 | | Mr. Li Dongpo | 3/3 | 0/1 | | Ms. Huang Huizhu | 1/1 | N/A | | Mr. Tian Zhiyuan | 3/3 | 1/1 | | Mr. Wang Luping | 3/3 | 1/1 | | Mr. Gao Jizhong | 3/3 | 1/1 | [Chairman and Chief Executive](index=28&type=section&id=CHAIRMAN%20AND%20CHIEF%20EXECUTIVE) The roles of Chairman and Chief Executive Officer are combined in Mr. Liu Guoqing, which the Board believes is in the Group's interest, but the company will continue to seek suitable candidates to comply with Corporate Governance Code requirements - Mr. Liu Guoqing serves as both Chairman and Chief Executive Officer, which the Board believes is conducive to the Group's effective management and business development[129](index=129&type=chunk)[133](index=133&type=chunk) - The company will identify suitable candidates and make necessary arrangements to comply with Code Provision C.2.1 when required[129](index=129&type=chunk)[133](index=133&type=chunk) [Diversity](index=28&type=section&id=DIVERSITY) The company has adopted a Board Diversity Policy and is committed to maintaining diversity at both Board and employee levels, although measurable gender diversity targets have not yet been set - The company has adopted a Board Diversity Policy to ensure the Board has a balanced mix of skills, experience, and diverse perspectives[130](index=130&type=chunk)[134](index=134&type=chunk) - Board nominations, appointments, and re-appointments will be merit-based, considering diversity factors such as gender, age, cultural and educational background, and professional experience[130](index=130&type=chunk)[134](index=134&type=chunk) - As at April 30, 2025, the gender ratio of the Group's employees (including senior management) was **86% male** and **14% female**[136](index=136&type=chunk)[138](index=138&type=chunk) - To enhance efficiency, measurable targets for gender diversity at the workforce level have not yet been set, but the Group is committed to providing equal opportunities for recruitment and promotion[136](index=136&type=chunk)[138](index=138&type=chunk) [Independent Views of the Board](index=29&type=section&id=INDEPENDENT%20VIEWS%20OF%20THE%20BOARD) The company has established mechanisms to ensure the Board receives independent opinions and advice, safeguarding the independence and objectivity of Board decisions through the professional experience of independent non-executive directors and committee reviews - The Board comprises **three independent non-executive directors** who provide independent professional advice, ensuring the independence of Board decisions[137](index=137&type=chunk)[139](index=139&type=chunk) - The Nomination Committee annually reviews the Board's composition and the independence, qualifications, and time commitment of independent non-executive directors[139](index=139&type=chunk) - All Board members have the opportunity to propose matters for discussion on the meeting agenda and seek independent professional advice when necessary[147](index=147&type=chunk) [Board Committees](index=30&type=section&id=BOARD%20COMMITTEES) The Board has established an Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific company matters. Each committee has adequate resources to fulfill its duties and can seek independent professional advice - The Board has established an Audit Committee, Remuneration Committee, and Nomination Committee to specifically oversee designated matters of the company[142](index=142&type=chunk)[145](index=145&type=chunk) - All Board committees are provided with sufficient resources to discharge their duties and may seek independent professional advice where appropriate[142](index=142&type=chunk)[145](index=145&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee oversees the company's financial reporting system, risk management, and internal controls, and advises on the appointment and remuneration of external auditors. During the year, the committee reviewed and approved the audited consolidated financial statements and unaudited interim results - The Audit Committee comprises all **three independent non-executive directors**, with Mr. Tian Zhiyuan serving as Chairman[143](index=143&type=chunk)[146](index=146&type=chunk) - Key functions include advising on the appointment, re-appointment, and removal of external auditors, and overseeing the company's financial reporting system, risk management, and internal control systems[148](index=148&type=chunk)[154](index=154&type=chunk) - During the year, **two Audit Committee meetings** were held, reviewing and approving the audited consolidated financial statements for 2024 and the unaudited consolidated interim results for the six months ended October 31, 2024[149](index=149&type=chunk)[150](index=150&type=chunk) - The company complies with Listing Rule 3.21, ensuring at least one independent non-executive director on the Audit Committee possesses appropriate professional qualifications or expertise in accounting or financial management[151](index=151&type=chunk)[153](index=153&type=chunk) [Remuneration Committee](index=33&type=section&id=Remuneration%20Committee) The Remuneration Committee advises the Board on remuneration policies and structures for directors and senior management, and reviews and approves management's performance-based compensation. During the year, the committee reviewed remuneration matters for directors and senior management and the share option scheme - The Remuneration Committee comprises **two independent non-executive directors** (Mr. Tian Zhiyuan, Mr. Wang Luping) and **one executive director** (Mr. Liu Guoqing), with Mr. Tian Zhiyuan serving as Chairman[155](index=155&type=chunk)[156](index=156&type=chunk) - Key functions include advising on remuneration policies and structures for all directors and senior management, and reviewing and approving management's performance-based compensation[157](index=157&type=chunk)[163](index=163&type=chunk) - During the year, **two Remuneration Committee meetings** were held, reviewing and recommending to the Board for consideration and approval certain remuneration-related matters for directors and senior management, and reviewing the company's share option scheme[158](index=158&type=chunk)[159](index=159&type=chunk) [Nomination Committee](index=34&type=section&id=Nomination%20Committee) The Nomination Committee reviews the Board's structure, size, and composition, identifies qualified director candidates, and assesses the independence of independent non-executive directors. During the year, the committee reviewed the Board's composition, assessed the independence of independent non-executive directors, and recommended directors for re-election - The Nomination Committee comprises **two independent non-executive directors** (Mr. Gao Jizhong, Mr. Tian Zhiyuan) and **one executive director** (Ms. Huang Huizhu), with Mr. Gao Jizhong serving as Chairman[161](index=161&type=chunk)[162](index=162&type=chunk) - Key functions include reviewing the Board's structure, size, and composition at least annually, identifying qualified Board members, assessing the independence of independent non-executive directors, and advising on the appointment or re-appointment of directors[165](index=165&type=chunk)[166](index=166&type=chunk) - During the year, **two Nomination Committee meetings** were held, reviewing the Board's structure, assessing the independence of independent non-executive directors, and recommending the Board to consider re-appointing retiring directors[164](index=164&type=chunk)[165](index=165&type=chunk) [Nomination Policy](index=36&type=section&id=NOMINATION%20POLICY) The Nomination Policy outlines the procedures for selecting, appointing, and re-appointing directors (including independent non-executive directors), emphasizing consideration of candidates' diversity, time commitment, qualifications, experience, independence, and integrity - The Nomination Committee in selecting and appointing directors, considers the Board's current composition and size, and develops a list of required skills, perspectives, and experience[170](index=170&type=chunk)[171](index=171&type=chunk) - Selection criteria include gender, age, cultural and educational background, professional experience, skills, knowledge, length of service, time commitment, qualifications, independence (for independent non-executive directors), and reputation for integrity[171](index=171&type=chunk)[172](index=172&type=chunk) - The Nomination Committee will evaluate and recommend retiring directors for re-appointment by the Board, considering their overall contribution and service to the company and their continued ability to meet standards[177](index=177&type=chunk)[179](index=179&type=chunk) [Corporate Governance Functions](index=38&type=section&id=CORPORATE%20GOVERNANCE%20FUNCTIONS) The Audit Committee is responsible for corporate governance functions, including formulating and reviewing corporate governance policies, overseeing director and senior management training, reviewing compliance policies, and monitoring the implementation of codes of conduct - The Audit Committee is responsible for formulating and reviewing the company's corporate governance policies and practices, and making recommendations to the Board[178](index=178&type=chunk)[180](index=180&type=chunk) - Functions also include reviewing and monitoring the training and continuous professional development of directors and senior management, as well as the company's policies and practices for compliance with legal and regulatory requirements[178](index=178&type=chunk)[180](index=180&type=chunk) [Anti-Corruption Policy](index=38&type=section&id=ANTI-CORRUPTION%20POLICY) The company has established an anti-corruption policy to outline expectations and requirements for preventing, detecting, reporting, and investigating any suspected fraud, corruption, and other similar misconduct, requiring all employees to adhere to the code of conduct - The Group has formulated an anti-corruption policy in compliance with Code Provision D.2.7, aiming to outline expectations and requirements for preventing, detecting, reporting, and investigating any suspected fraud, corruption, and other similar misconduct[174](index=174&type=chunk)[176](index=176&type=chunk) - The Group adopts a zero-tolerance approach to corruption or other unethical behavior and requires all employees to comply with the code of conduct in the Employee Handbook[181](index=181&type=chunk)[187](index=187&type=chunk) - The anti-corruption policy is regularly reviewed and updated to comply with applicable laws, regulations, and industry best practices[182](index=182&type=chunk)[187](index=187&type=chunk) [Whistleblowing Policy](index=39&type=section&id=WHISTLEBLOWING%20POLICY) The company has established a whistleblowing policy to provide a confidential mechanism for all stakeholders to report any suspected misconduct, upholding the highest standards of openness, integrity, and accountability - The Group has established a whistleblowing policy as an important component of its effective risk management and internal control system[183](index=183&type=chunk)[188](index=188&type=chunk) - The whistleblowing policy provides a confidential mechanism for all stakeholders (including employees, shareholders, customers, and suppliers) to report any suspected misconduct[184](index=184&type=chunk)[188](index=188&type=chunk) - Complaints are handled by designated staff, investigation results are reported to the Audit Committee, and appropriate actions are ensured[184](index=184&type=chunk)[188](index=188&type=chunk) [Appointment and Re-election of Directors](index=39&type=section&id=APPOINTMENT%20AND%20RE-ELECTION%20OF%20DIRECTORS) This section outlines the procedures for director appointment and re-election, including service agreement terms, rotation requirements, and confirmation of independent non-executive directors' independence - Executive directors' service agreements are for a term of **one year**, and independent non-executive directors' appointment letters are also for a term of **one year**[189](index=189&type=chunk)[304](index=304&type=chunk)[306](index=306&type=chunk) - All directors (including independent non-executive directors) are subject to retirement by rotation in accordance with the Articles of Association and are eligible for re-election, at least once every **three years**[191](index=191&type=chunk)[295](index=295&type=chunk) - Mr. Liu Guoqing and Mr. Li Dongpo will retire by rotation at the 2025 Annual General Meeting and are eligible for re-election[296](index=296&type=chunk)[301](index=301&type=chunk) - The company has received annual written confirmations of independence from each independent non-executive director and considers all independent non-executive directors to be independent[297](index=297&type=chunk)[301](index=301&type=chunk) [Independent Auditor's Responsibility and Remuneration](index=40&type=section&id=INDEPENDENT%20AUDITOR%27S%20RESPONSIBILITY%20AND%20REMUNERATION) This section explains the independent auditor's reporting responsibilities and opinion, and discloses the remuneration paid to the independent auditor for the current year - The independent auditor's reporting responsibilities and opinion are set out in the 'Independent Auditor's Report' section of the annual report[196](index=196&type=chunk) Independent Auditor's Remuneration | Service | Fees Paid/Payable (HK$'000) | | :--- | :--- | | Audit Services | 850 | | **Total** | **850** | [Directors' Responsibility in Respect of the Financial Statements](index=41&type=section&id=DIRECTORS%27%20RESPONSIBILITY%20IN%20RESPECT%20OF%20THE%20FINANCIAL%20STATEMENTS) This section confirms the directors' responsibility for preparing the financial statements and states that no events or circumstances were found that could cast significant doubt on the company's ability to continue as a going concern - Directors acknowledge their responsibility for preparing the financial statements[198](index=198&type=chunk)[203](index=203&type=chunk) - Directors have not identified any material uncertainties or events that could cast significant doubt on the company's ability to continue as a going concern[198](index=198&type=chunk)[204](index=204&type=chunk) [Risk Management and Internal Controls](index=41&type=section&id=RISK%20MANAGEMENT%20AND%20INTERNAL%20CONTROLS) The Audit Committee reviews the adequacy of the Group's internal financial, operational, and compliance controls, as well as risk management policies and systems. The Board has reviewed and assessed the risk management and internal control systems, deeming them adequate and effective - The Audit Committee reviews the adequacy of the Group's internal financial controls, operational and compliance controls, and risk management policies and systems[199](index=199&type=chunk)[205](index=205&type=chunk) - Risk management and internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives, and can only provide reasonable, not absolute, assurance[200](index=200&type=chunk)[205](index=205&type=chunk) - The Board has reviewed and assessed the effectiveness of the company's risk management and internal control systems and considers the existing systems to be adequate and effective[201](index=201&type=chunk)[205](index=205&type=chunk) - The company has an internal audit function to analyze and independently evaluate the adequacy and effectiveness of systems, and procedures are in place to ensure information confidentiality and manage potential conflicts of interest[202](index=202&type=chunk)[206](index=206&type=chunk) [Disclosure of Inside Information](index=42&type=section&id=DISCLOSURE%20OF%20INSIDE%20INFORMATION) The company is aware of its responsibilities regarding inside information disclosure and has implemented relevant procedures and internal controls to ensure timely, fair, accurate, true, and complete public disclosure of information - The Group is aware of its obligations under the Securities and Futures Ordinance and the Listing Rules, with the primary principle being that inside information should be announced immediately[210](index=210&type=chunk) - The Group handles affairs with full consideration of the disclosure requirements of the Listing Rules and the 'Guidelines on Disclosure of Inside Information' issued by the Securities and Futures Commission of Hong Kong[211](index=211&type=chunk)[213](index=213&type=chunk) - The Group has strictly prohibited unauthorized use of confidential or inside information and has established procedures for responding to external inquiries, authorizing only executive directors, the company secretary, and the financial controller to communicate externally[221](index=221&type=chunk) [Company Secretary](index=43&type=section&id=COMPANY%20SECRETARY) The company secretary is responsible for ensuring smooth information flow among Board members and compliance with all applicable laws and regulations. This section also discloses changes in the company secretary and continuous professional development - The company secretary supports the Board, ensuring information flow and compliance with applicable laws and regulations[214](index=214&type=chunk)[219](index=219&type=chunk) - Ms. Dong Yingyi resigned as company secretary on May 26, 2025, and Mr. Guo Zhaowen was appointed on the same day[215](index=215&type=chunk)[216](index=216&type=chunk)[219](index=219&type=chunk) - Ms. Dong Yingyi participated in over **15 hours** of relevant continuous professional development training during the year[216](index=216&type=chunk)[219](index=219&type=chunk) [Investor Relations](index=43&type=section&id=INVESTOR%20RELATIONS) The company is committed to enhancing investor relations through high transparency and timely disclosure of company information, updating shareholders and the investing public on business developments and financial performance through various communication tools - The company believes that maintaining high transparency is key to strengthening investor relations and is committed to open and timely disclosure of company information[217](index=217&type=chunk)[220](index=220&type=chunk) - The company updates shareholders on the latest business developments and financial performance through announcements, circulars, annual and interim reports, and the company website[218](index=218&type=chunk)[220](index=220&type=chunk) [Significant Changes in Constitutional Document](index=44&type=section&id=SIGNIFICANT%20CHANGES%20IN%20CONSTITUTIONAL%20DOCUMENT) This section confirms that the company made no changes to its constitutional documents during the current year - During the year, the company made no changes to its constitutional documents[222](

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Aoneng Construction Holdings Limited's unaudited condensed consolidated results for the six months ended June 30, 2025, show significant growth in revenue, gross profit, and net profit, primarily driven by increased gross profit contributions from the construction and smart manufacturing businesses, despite a slight decrease in outstanding contract value, overall financial performance is strong Financial Highlights for H1 2025 | Metric | June 30, 2025 (million MOP) | June 30, 2024 (million MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 803.2 | 746.2 | +7.6% | | Gross Profit | 71.9 | 47.5 | +51.5% | | Net Profit | 20.4 | 8.0 | +155.3% | | Construction Business Outstanding Contract Value | 595.3 | 682.1 (Dec 31, 2024) | -12.7% | | Smart Manufacturing Business Outstanding Contract Value | 567.0 | 618.1 (Dec 31, 2024) | -8.3% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements provide a detailed overview of the Group's financial performance and position for the period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue increased by 7.6% year-on-year, gross profit surged by 51.5%, and profit for the period soared by 155.3%, driven by increased other income and gains, and reduced finance costs Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 803,167 | 746,164 | +7.6% | | Cost of Goods and Services | (731,248) | (698,687) | +4.7% | | Gross Profit | 71,919 | 47,477 | +51.5% | | Other Income | 8,581 | 1,343 | +538.9% | | Other Gains and Losses | 4,169 | 1,792 | +132.7% | | Distribution Costs | (15,098) | (12,002) | +25.8% | | Net Impairment Losses | (2,631) | 6,153 | -142.8% | | Administrative Expenses | (37,813) | (35,108) | +7.7% | | Finance Costs | (4,444) | (5,388) | -17.5% | | Profit Before Tax | 24,689 | 9,598 | +157.2% | | Income Tax Expense | (4,311) | (1,616) | +166.8% | | Profit for the Period | 20,378 | 7,982 | +155.3% | | Total Comprehensive Income for the Period | 28,232 | 1,522 | +1754.9% | | Basic Earnings Per Share (MOP cents) | 0.40 | 0.17 | +135.3% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net assets and total equity increased, with net current assets remaining robust, while a significant rise in cash and cash equivalents and a reduction in bank borrowings indicate improved liquidity and lower financial leverage Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 341,866 | 346,808 | -1.4% | | Current Assets | 815,497 | 792,296 | +2.9% | | Current Liabilities | 573,506 | 563,170 | +1.8% | | Net Current Assets | 241,991 | 229,126 | +5.6% | | Total Assets Less Current Liabilities | 583,857 | 575,934 | +1.4% | | Non-current Liabilities | 73,848 | 94,019 | -21.5% | | Net Assets | 510,009 | 481,915 | +5.8% | | Total Equity | 510,009 | 481,915 | +5.8% | | Cash and Cash Equivalents | 116,632 | 61,315 | +90.2% | | Bank Borrowings (Current + Non-current) | 240,507 | 257,697 | -6.7% | [Notes](index=4&type=section&id=Notes) These notes provide detailed explanations and disclosures regarding the accounting policies, financial performance, and position presented in the financial statements [Basis of Preparation](index=4&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the disclosure requirements of the HKEX Listing Rules - The financial statements are prepared in compliance with International Accounting Standard 34 'Interim Financial Reporting' and the HKEX Listing Rules[6](index=6&type=chunk) [Significant Accounting Policies](index=4&type=section&id=Significant%20Accounting%20Policies) The condensed consolidated financial statements are primarily prepared on a historical cost basis, adopting the same accounting policies and methods of computation as presented in the consolidated financial statements for the year ended December 31, 2024 - The financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual consolidated financial statements[7](index=7&type=chunk) [Application of Amendments to International Financial Reporting Standards](index=4&type=section&id=Application%20of%20Amendments%20to%20International%20Financial%20Reporting%20Standards) International Accounting Standard 21 (Amendment) 'Lack of Exchangeability' was first applied in this interim period, with no significant impact on the Group's financial position or performance - International Accounting Standard 21 (Amendment) 'Lack of Exchangeability' was first applied, with no significant impact on financial position or performance[8](index=8&type=chunk) [Revenue and Segment Information](index=4&type=section&id=Revenue%20and%20Segment%20Information) The Group's operating segments include construction, electric vehicle, and smart manufacturing businesses, with smart manufacturing remaining the primary revenue source, though construction revenue grew significantly, the Group operates across Macau, China, Hong Kong, Singapore, and Cyprus, with Macau as the largest market and notable growth in Hong Kong and Singapore [Operating Segments](index=4&type=section&id=Operating%20Segments) The Group is segmented into construction, electric vehicle, and smart manufacturing businesses (formerly steel structure business) in accordance with IFRS 8 'Operating Segments' - The Group's operating segments include: Construction Business (construction and renovation, high-voltage substations, E&M engineering, facility management), Electric Vehicle Business (charging services, distribution, design and production, battery pack manufacturing, charging/swapping solutions), and Smart Manufacturing Business (sales and processing of new building materials, steel structure leasing)[9](index=9&type=chunk)[10](index=10&type=chunk) Total Revenue from Customer Contracts (For the six months ended June 30) | Business Segment | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Construction Business | 273,157 | 189,846 | +43.9% | | Electric Vehicle Business | 332 | 1,452 | -77.1% | | Smart Manufacturing Business | 529,678 | 554,866 | -4.5% | | Steel Structure Leasing Income | 11,756 | – | N/A | | **Total Revenue** | **803,167** | **746,164** | **+7.6%** | [Segment Results](index=5&type=section&id=Segment%20Results) Profit before tax for the construction and smart manufacturing businesses grew significantly, while the electric vehicle business continued to incur losses, central administrative expenses remained stable, and the share of results of associates contributed minimally to overall profit Segment Results (For the six months ended June 30) | Segment | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Construction Business | 16,014 | 3,203 | +399.9% | | Electric Vehicle Business | (182) | (1,690) | +89.2% (Loss narrowed) | | Smart Manufacturing Business | 10,245 | 3,734 | +174.4% | | **Total Segment Results** | **26,077** | **5,247** | **+397.0%** | | Central Administrative Expenses | (1,394) | (1,454) | -4.1% | | Share of Results of Associates | 6 | 7,213 | -99.9% | | Impairment Loss on an Associate | – | (1,408) | N/A | | **Profit Before Tax** | **24,689** | **9,598** | **+157.2%** | [Geographical Information](index=7&type=section&id=Geographical%20Information) Macau remains the Group's largest revenue source, but revenue contributions from China, Hong Kong, and Singapore markets grew significantly, demonstrating effective market expansion strategies, with non-current assets primarily concentrated in China and Macau Revenue from External Customers (For the six months ended June 30) | Region | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Macau | 500,933 | 587,798 | -14.8% | | China | 98,942 | 60,692 | +63.0% | | Hong Kong | 164,592 | 81,187 | +102.7% | | Singapore | 20,899 | 1,986 | +952.3% | | Cyprus | 17,801 | 14,501 | +22.8% | | **Total** | **803,167** | **746,164** | **+7.6%** | Non-current Assets (As of June 30) | Region | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Macau | 88,664 | 97,048 | -8.6% | | China | 252,464 | 248,921 | +1.4% | | Hong Kong | – | – | N/A | | Singapore | – | – | N/A | | Cyprus | 738 | 839 | -12.1% | | **Total** | **341,866** | **346,808** | **-1.4%** | [Income Tax Expense](index=7&type=section&id=Income%20Tax%20Expense) Income tax expense for the period significantly increased by 166.8%, primarily due to higher gross profit, with the Group subject to varying tax rates across jurisdictions and holding unutilized tax losses for which no deferred tax assets are recognized Income Tax Expense (For the six months ended June 30) | Tax Category | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Current Tax | 3,500 | 2,645 | +32.3% | | Under-provision (Over-provision) in Prior Years | 811 | (1,029) | -178.8% | | **Total Income Tax Expense** | **4,311** | **1,616** | **+166.8%** | - Macau subsidiaries are subject to a tax rate of **12%** (for assessable profits exceeding MOP 600,000), China subsidiaries to **25%**, Cyprus subsidiaries to **12.5%**, Hong Kong subsidiaries to **8.25%** (first HKD 2 million) / **16.5%** (above), and Singapore subsidiaries to **17%**[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) - As of June 30, 2025, the Group had unutilized tax losses of **MOP 44,473 thousand** (December 31, 2024: MOP 40,189 thousand), for which no deferred tax assets were recognized[18](index=18&type=chunk) [Earnings Per Share](index=8&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the Company were 0.40 MOP cents, representing a significant increase from the prior period Earnings Per Share (For the six months ended June 30) | Metric | June 30, 2025 | June 30, 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (thousand MOP) | 15,867 | 6,949 | +128.3% | | Weighted Average Number of Ordinary Shares (thousand shares) | 3,980,817 | 3,986,007 | -0.1% | | Basic Earnings Per Share (MOP cents) | 0.40 | 0.17 | +135.3% | | Diluted Earnings Per Share (MOP cents) | 0.40 | 0.17 | +135.3% | - For the six months ended June 30, 2025, there were no bonus warrants issued or outstanding[19](index=19&type=chunk) [Contract Assets](index=8&type=section&id=Contract%20Assets) The Group's contract assets, primarily comprising unbilled revenue and retention receivables, decreased in total, with the aging analysis of retention money indicating that most will be due after one year, and some overdue retention money is still considered recoverable Contract Assets (As of June 30) | Metric | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Contract Assets from Customer Contracts | 59,479 | 67,581 | -11.9% | | Less: Provision for Credit Losses | (5,101) | (5,516) | -7.5% | | **Total Contract Assets** | **54,378** | **62,065** | **-12.4%** | | Unbilled Revenue | 14,035 | 21,125 | -33.6% | | Retention Receivables | 40,343 | 40,940 | -1.5% | Aging Analysis of Retention Receivables (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | Within 1 year | 11,811 | 12,810 | | After 1 year | 28,532 | 28,130 | | **Total** | **40,343** | **40,940** | - As of June 30, 2025, retention receivables with a carrying amount of **MOP 11,194 thousand** were overdue but not impaired, as there was no significant change in credit quality[23](index=23&type=chunk) [Trade and Other Receivables](index=10&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables decreased, with a reduction in trade receivables from customer contracts, while the Group grants credit terms of 0 to 90 days, and some overdue receivables are still considered recoverable Trade and Other Receivables (As of June 30) | Metric | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables from Customer Contracts | 318,930 | 401,582 | -20.6% | | Less: Provision for Credit Losses | (31,945) | (29,413) | +8.6% | | **Net Trade Receivables** | **286,985** | **372,169** | **-22.8%** | | Other Receivables, Deposits and Prepayments | 168,633 | 160,295 | +5.2% | | Less: Provision for Credit Losses | (814) | (651) | +25.0% | | **Total Trade and Other Receivables** | **454,804** | **531,813** | **-14.5%** | Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | 0 to 90 days | 187,572 | 270,702 | | 91 to 365 days | 80,154 | 72,765 | | 1 to 2 years | 13,954 | 21,178 | | Over 2 years | 5,305 | 7,524 | | **Total** | **286,985** | **372,169** | - As of June 30, 2025, trade receivables of **MOP 147,640 thousand** were overdue, of which **MOP 63,600 thousand** were overdue for more than 90 days but not considered in default[24](index=24&type=chunk) [Amounts Due from an Associate](index=11&type=section&id=Amounts%20Due%20from%20an%20Associate) Amounts due from an associate (trade nature) decreased, but some overdue amounts are still considered recoverable Aging Analysis of Amounts Due from an Associate (Trade Nature) (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | 0 to 90 days | – | 1,117 | | 91 to 365 days | 1,130 | – | | **Total** | **1,130** | **1,117** | - As of June 30, 2025, amounts due from an associate of **MOP 1,130 thousand** were overdue but not impaired[26](index=26&type=chunk) [Trade Payables and Accruals](index=11&type=section&id=Trade%20Payables%20and%20Accruals) Total trade payables and accruals slightly decreased, with trade payables having credit terms of 0 to 90 days, and most retention payables expected to be settled within one year Trade Payables and Accruals (As of June 30) | Metric | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 155,159 | 172,627 | -10.2% | | Retention Payables | 22,438 | 24,338 | -7.8% | | Bills Payable | 6,733 | 963 | +599.2% | | Other Payables and Accruals | 115,303 | 112,677 | +2.3% | | **Total** | **299,683** | **310,605** | **-3.5%** | Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | 0 to 90 days | 116,029 | 132,378 | | 91 to 365 days | 38,606 | 37,507 | | 1 to 2 years | 122 | 2,692 | | Over 2 years | 402 | 50 | | **Total** | **155,159** | **172,627** | Aging Analysis of Retention Payables (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | On demand or within 1 year | 18,381 | 21,077 | | After 1 year | 4,057 | 3,261 | | **Total** | **22,438** | **24,338** | [Dividends](index=12&type=section&id=Dividends) The Board did not declare an interim dividend for the six months ended June 30, 2025 - The Board did not declare dividends for either period[32](index=32&type=chunk) [Company Profile](index=13&type=section&id=Company%20Profile) Aoneng Construction Holdings Limited is an integrated construction enterprise operating across Macau, Hong Kong, Singapore, and Australia, primarily engaged in smart manufacturing, construction, and electric vehicle-related services, focusing on complex construction projects, substations, and steel structure engineering - The Group's business scope includes: Smart Manufacturing Business (R&D and sales of new building materials, production and sales of smart machinery), Construction Business (construction and renovation, high-voltage substations, E&M engineering, facility management and operations), and Electric Vehicle-related services[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Business operations cover high-potential growth regions including Macau, Hong Kong, Singapore, and Australia[33](index=33&type=chunk) [Business Review and Analysis](index=14&type=section&id=Business%20Review%20and%20Analysis) This section provides an in-depth review and analysis of the Group's operational performance, market environment, and strategic initiatives across its key business segments [Macroeconomic and Market Environment](index=14&type=section&id=Macroeconomic%20and%20Market%20Environment) Increased global economic uncertainty is offset by growth opportunities from AI technology innovation and government smart strategies in smart machinery R&D and regional construction, with Macau, Hong Kong, and Singapore markets showing positive growth signals, particularly in infrastructure and emerging industries - Global economic uncertainty is increasing, but AI technology innovation and smart strategies present growth opportunities[37](index=37&type=chunk) - Macau's GDP increased by **1.8%** year-on-year, with tourist arrivals up **14.9%**, actively promoting economic diversification focusing on modern finance, data centers, and technological innovation, and launching several large-scale infrastructure projects[37](index=37&type=chunk) - Hong Kong's GDP is projected to grow by **3.1%** in Q2 2025, with the budget emphasizing infrastructure development, particularly the 'Northern Metropolis', driving smart infrastructure[38](index=38&type=chunk) - Singapore's GDP grew by **4.2%** in H1 2025, with public sector initiatives driving social construction and a recovery in the construction industry, alongside increased manufacturing output[38](index=38&type=chunk) [Overall Financial Performance](index=15&type=section&id=Overall%20Financial%20Performance) The Group's overall revenue grew by 7.6% to **MOP 803.2 million**, gross profit surged by 51.5% to **MOP 71.9 million**, and gross margin improved to **9.0%**, while net profit increased by 155.3% to **MOP 20.4 million**, with net profit margin improving to **2.5%**, and Hong Kong market revenue doubling, alongside rapid growth in Singapore Overall Financial Performance (For the six months ended June 30) | Metric | 2025 (million MOP) | 2024 (million MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 803.2 | 746.2 | +7.6% | | Gross Profit | 71.9 | 47.5 | +51.5% | | Gross Profit Margin | 9.0% | 6.4% | +2.6 percentage points | | Net Profit | 20.4 | 8.0 | +155.3% | | Net Profit Margin | 2.5% | 1.1% | +1.4 percentage points | - Hong Kong market revenue contribution more than doubled from the previous period, becoming the second-largest market; Singapore market contribution grew from **0.4%** to **3.9%**[39](index=39&type=chunk) - Outstanding contract values for the construction business and smart manufacturing business were **MOP 595.3 million** and **MOP 567.0 million**, respectively[39](index=39&type=chunk) [Smart Manufacturing Business](index=15&type=section&id=Smart%20Manufacturing%20Business) The smart manufacturing business contributed 65.9% of total revenue, with gross profit and gross margin increasing despite a slight revenue decrease due to lower sales volume, as the Group actively expands into high-value new building materials and smart machinery manufacturing, and has strategically partnered with Beijing Institute of Architectural Mechanization to produce smart window cleaning equipment - The smart manufacturing business contributed **65.9%** of total revenue, delivering approximately **102,180 tons** of new building materials orders[40](index=40&type=chunk) - The gross profit margin for the smart manufacturing business improved to **8.8%** (previous period: 5.4%), primarily due to higher gross profit margins from sales orders in Hong Kong and Singapore[40](index=40&type=chunk)[48](index=48&type=chunk) - A strategic partnership with Beijing Institute of Architectural Mechanization was established to jointly research, develop, and promote green energy, new materials, and complete sets of smart equipment, with smart window cleaning equipment already in production[41](index=41&type=chunk) - The Jiangmen production plant in Guangdong increased capacity, participating in major infrastructure projects such as the Hong Kong Northern Metropolis, Macau New Urban Zone reclamation project, and Singapore intercity rail[41](index=41&type=chunk) [Construction Business](index=16&type=section&id=Construction%20Business) Construction business revenue significantly increased by 43.9% year-on-year, primarily due to the completion and delivery of key milestones for major projects, including civil construction works for the Macau Government Data Center and Ma Kok Substation, with the Group successfully undertaking a series of large-scale construction and renovation, E&M engineering, and facility management service contracts - Construction business revenue increased significantly by approximately **43.9%** compared to the same period in 2024[42](index=42&type=chunk) - Key projects include the Macau Government Data Center renovation project and equipment procurement services, and casino renovation and improvement projects, with new project contracts totaling approximately **MOP 158.6 million**[42](index=42&type=chunk) - The construction business maintained a stable gross profit margin with sufficient outstanding contracts, and several key projects are expected to advance in the second half of the year[42](index=42&type=chunk) [Electric Vehicle Business](index=16&type=section&id=Electric%20Vehicle%20Business) The electric vehicle business continues to provide EV charging services to various high-end integrated entertainment and resorts, premium residential areas, and commercial buildings, diversifying the Group's revenue, while the Group explores the market and seeks strategic collaborations with industry leaders to optimize its business layout - Indirect wholly-owned subsidiary Free Charge (Macau) Limited continues to provide electric vehicle charging services to multiple high-end venues[43](index=43&type=chunk) - The Group is exploring the market and strategic collaborations with industry-leading enterprises to optimize its electric vehicle business layout[43](index=43&type=chunk) [Revenue Analysis](index=17&type=section&id=Revenue%20Analysis) The Group's total revenue increased by 7.6%, with construction business revenue surging by 43.9%, primarily driven by certified progress in the Ma Kok Substation civil construction and Macau Government Data Center construction projects, while smart manufacturing business revenue decreased by 4.5% due to lower sales volume Revenue Breakdown (For the six months ended June 30) | Business Segment | 2025 (thousand MOP) | Proportion (%) | 2024 (thousand MOP) | Proportion (%) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Construction Business | 273,157 | 34.0 | 189,846 | 25.4 | +43.9% | | Electric Vehicle Business | 332 | 0.1 | 1,452 | 0.2 | -77.1% | | Smart Manufacturing Business | 529,678 | 65.9 | 554,866 | 74.4 | -4.5% | | **Total** | **803,167** | **100.0** | **746,164** | **100.0** | **+7.6%** | - Construction business revenue increased by **MOP 83.3 million**, primarily due to certified progress in the Macau Ma Kok Substation civil construction project (**MOP 49.1 million**) and the Macau Government Data Center construction project (**MOP 44.8 million**)[46](index=46&type=chunk)[49](index=49&type=chunk) - Smart manufacturing business revenue decreased by **MOP 25.2 million**, mainly due to lower sales volume of new building materials[45](index=45&type=chunk) [Gross Profit Analysis](index=18&type=section&id=Gross%20Profit%20Analysis) The Group's total gross profit increased by 51.5%, with gross profit margin improving from 6.4% to 9.0%, driven by significant improvement in smart manufacturing gross margin due to high-margin orders in Hong Kong and Singapore, while construction and renovation engineering gross loss margin narrowed, facility management services gross margin declined, and the electric vehicle business continued to incur gross losses Gross Profit and Gross Profit Margin Breakdown (For the six months ended June 30) | Business Segment | 2025 Gross Profit (thousand MOP) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (thousand MOP) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Construction and Renovation Engineering | (6,077) | (7.1) | (10,273) | (16.0) | | High-voltage Substation Construction and System Installation Engineering | 3,467 | 6.8 | 140 | 1.5 | | E&M Engineering Services | 507 | 4.4 | 152 | 0.4 | | Facility Management Services | 27,643 | 22.1 | 28,323 | 34.5 | | **Total Construction Business** | **25,540** | **9.3** | **18,342** | **9.7** | | Electric Vehicle Business | (33) | (10.1) | (1,008) | (69.4) | | Smart Manufacturing Business | 46,412 | 8.8 | 30,143 | 5.4 | | **Total** | **71,919** | **9.0** | **47,477** | **6.4** | - Smart manufacturing business gross profit margin improved from **5.4%** to **8.8%**, primarily due to higher gross profit margins obtained from sales orders in Hong Kong and Singapore[48](index=48&type=chunk) - Construction and renovation engineering gross loss margin improved from **16.0%** to **7.1%**, but facility management services gross profit margin decreased from **34.5%** to **22.1%**, mainly due to inflation and reduced service scope by casino operators[50](index=50&type=chunk) - The electric vehicle business recorded a gross loss of **MOP 33 thousand** due to continuous investment to expand market share[50](index=50&type=chunk) [Other Income](index=19&type=section&id=Other%20Income) Other income for the period increased by **MOP 7.2 million**, primarily due to the recognition of **MOP 5.8 million** in insurance claims - Other income increased by **MOP 7.2 million**, mainly from **MOP 5.8 million** in insurance claims[51](index=51&type=chunk) [Other Gains and Losses](index=19&type=section&id=Other%20Gains%20and%20Losses) Other gains and losses increased by **MOP 2.4 million** during the period, primarily due to exchange gains from China operations - Other gains and losses increased by **MOP 2.4 million**, mainly from exchange gains of **MOP 4.2 million** from China operations[52](index=52&type=chunk) [Distribution Costs](index=19&type=section&id=Distribution%20Costs) Distribution costs for the period increased to **MOP 14.0 million**, primarily due to higher transportation costs from selling new building materials - Distribution costs increased to **MOP 14.0 million** (previous period: MOP 10.6 million), mainly due to transportation costs for new building materials[53](index=53&type=chunk) [Impairment Losses Reversal (Recognition) under Expected Credit Loss Model](index=19&type=section&id=Impairment%20Losses%20Reversal%20(Recognition)%20under%20Expected%20Credit%20Loss%20Model) Impairment losses of **MOP 2.6 million** were recognized in the current period, while **MOP 6.2 million** in impairment losses were reversed in the prior period, primarily due to customer recoveries - Impairment losses of **MOP 2.6 million** were recognized on trade receivables, amounts due from an associate, contract assets, and other receivables in the current period[54](index=54&type=chunk) - Impairment losses of **MOP 6.2 million** were reversed in the prior period, mainly due to recoveries from customers[54](index=54&type=chunk) [Administrative Expenses](index=20&type=section&id=Administrative%20Expenses) Administrative expenses increased by 7.7%, primarily due to higher salaries, staff costs, and depreciation resulting from the expansion of China's production facilities - Administrative expenses increased by **MOP 2.7 million** or **7.7%**, mainly due to higher salaries, staff costs, and depreciation from the expansion of China's production facilities[55](index=55&type=chunk) [Finance Costs](index=20&type=section&id=Finance%20Costs) Finance costs decreased by 17.5%, primarily due to a reduction in bank borrowings during the period - Finance costs decreased by **MOP 0.9 million** or **17.5%**, mainly due to a reduction in bank borrowings[56](index=56&type=chunk) [Income Tax Expense](index=20&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 166.8%, primarily due to higher gross profit during the period - Income tax expense increased by **MOP 2.7 million** or **166.8%**, mainly due to higher gross profit[57](index=57&type=chunk) [Profit for the Period](index=20&type=section&id=Profit%20for%20the%20Period) Profit for the period increased by 155.3%, with the net profit margin improving from 1.1% to 2.5%, reflecting the combined positive impact of the aforementioned factors - Profit for the period increased by **MOP 12.4 million** or **155.3%**, with the net profit margin improving from **1.1%** to **2.5%**[58](index=58&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) The Group adopts a prudent cash management approach, maintaining robust net current assets and current ratio, with a significant increase in cash and bank balances, reduced bank borrowings, and a lower gearing ratio, indicating a healthy financial position Liquidity and Financial Resources (As of June 30) | Metric | 2025 (million MOP) | Dec 31, 2024 (million MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Assets | 242.0 | 229.1 | +5.6% | | Current Ratio | 1.4 times | 1.4 times | 0.0% | | Total Cash and Bank Balances | 116.6 | 61.3 | +90.2% | | Outstanding Bank Borrowings | 240.5 | 257.7 | -6.7% | | Unutilized Credit Facilities | 132.5 | 121.6 | +8.9% | | Gearing Ratio | 47.2% | 53.5% | -6.3 percentage points | [Capital Structure](index=20&type=section&id=Capital%20Structure) As of June 30, 2025, the Company's share capital and total equity both increased Capital Structure (As of June 30) | Metric | 2025 (million MOP) | Dec 31, 2024 (million MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Share Capital | 41.0 | 41.0 | 0.0% | | Total Equity | 510.0 | 481.9 | +5.8% | [Currency Risk](index=21&type=section&id=Currency%20Risk) The Group primarily faces currency risk from RMB-denominated purchases and HKD-denominated sales, which management will continue to monitor and manage - Major currency risks arise from steel material purchases denominated in RMB and sales denominated in HKD[61](index=61&type=chunk) [Material Investments, Acquisitions or Disposals and Future Plans](index=21&type=section&id=Material%20Investments%2C%20Acquisitions%20or%20Disposals%20and%20Future%20Plans) During the period, the Group did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures, nor does it have future plans for other material investments or capital assets - No material investments, acquisitions, or disposals occurred during the period, nor are there future plans for other material investments or capital assets[62](index=62&type=chunk) [Pledge of Assets](index=21&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group has pledged bank deposits and property, plant and equipment as collateral for credit facilities Pledge of Assets (As of June 30) | Pledged Assets | 2025 (million MOP) | Dec 31, 2024 (million MOP) | | :--- | :--- | :--- | | Bank Deposits | 45.3 | 27.9 | | Property, Plant and Equipment (including right-of-use assets) | 258.1 | 258.9 | [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[64](index=64&type=chunk) [Commitments](index=21&type=section&id=Commitments) As of June 30, 2025, the Group had no material capital commitments - As of June 30, 2025, the Group had no material capital commitments (December 31, 2024: MOP 4,530 thousand)[65](index=65&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's employee count increased to 507, with remuneration packages including salaries, allowances, benefits, and bonuses determined by performance, qualifications, position, and industry practice, and no share options were granted or exercised under the share option scheme during the period - As of June 30, 2025, the Group had **507** employees (December 31, 2024: 405 employees)[66](index=66&type=chunk) - Employee remuneration packages include salaries, allowances, benefits in kind, and bonuses, determined based on performance, qualifications, position, and industry practice[66](index=66&type=chunk) - No share options were granted, agreed to be granted, exercised, cancelled, or lapsed under the share option scheme during the period[66](index=66&type=chunk) [Outlook](index=22&type=section&id=Outlook) The Group will seize market opportunities from new quality productive forces and computing network construction, deepen strategic cooperation with national R&D institutions, and expand into smart machinery manufacturing, including intelligent rebar production lines and smart window cleaning equipment, concurrently, it will actively pursue data center operation and maintenance orders and explore emerging overseas markets like Singapore to build a more balanced and resilient development model - Responding to the central government's call for new quality productive forces, the Group will advance the expansion of fully intelligent rebar production lines to enhance production efficiency and reduce costs[67](index=67&type=chunk) - In collaboration with Beijing Institute of Architectural Mechanization, the Group entered the production and sales of smart window cleaning machines, with plans to develop high-complexity smart window cleaning machines and promote them in South China, the Middle East, and Africa[68](index=68&type=chunk) - Seizing the demand for computing network construction driven by the popularization of AI and cloud services, the Group aims to secure more public and private data center operation and maintenance orders[69](index=69&type=chunk) - The Group will continue to invest in technological innovation, focusing on new material processing and mechanical products, and actively explore emerging overseas markets like Singapore to reduce reliance on a few markets[70](index=70&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section provides additional disclosures on corporate governance, securities transactions, dividends, share repurchases, audit committee activities, and post-reporting period events [Corporate Governance Practices](index=23&type=section&id=Corporate%20Governance%20Practices) The Company is committed to maintaining good corporate governance practices and has complied with all code provisions of the Corporate Governance Code under Appendix C1 of the HKEX Listing Rules throughout the period - The Company has complied with all code provisions in Part 2 of the Corporate Governance Code throughout the period[72](index=72&type=chunk) [Standard Code for Securities Transactions](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors have confirmed compliance throughout the period - All Directors have confirmed compliance with the required standards set out in the Standard Code throughout the period[73](index=73&type=chunk) [Interim Dividend](index=23&type=section&id=Interim%20Dividend) The Board did not recommend the payment of an interim dividend for the period - The Board did not recommend the payment of an interim dividend for the period[74](index=74&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=24&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) During the period, the Company repurchased and cancelled 680,000 shares on the HKEX for a total consideration of approximately **HKD 134,000**, which the Board believes enhanced earnings per share Share Repurchase Details (January 2025) | Month | Number of Shares Repurchased | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 680,000 | 0.170 | 0.148 | 134,000 | - All repurchased shares were cancelled during the period, and the Board believes the repurchases enhanced earnings per share[75](index=75&type=chunk) [Audit Committee](index=24&type=section&id=Audit%20Committee) The Audit Committee comprises three independent non-executive directors, chaired by Ms. Chan Po Yee, and its primary responsibility is to assist the Board in providing independent opinions on financial reporting, internal controls, and risk management - The Audit Committee comprises three independent non-executive directors: Ms. Chan Po Yee (Chairperson), Mr. Cheung Kiu Chor, and Mr. Liu Wing Tung[76](index=76&type=chunk) - Its primary responsibilities include providing independent opinions on financial reporting processes, internal control, and risk management systems effectiveness[76](index=76&type=chunk) [Review of Interim Financial Information](index=24&type=section&id=Review%20of%20Interim%20Financial%20Information) The Audit Committee and external auditor Deloitte Touche Tohmatsu have reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee and external auditor Deloitte Touche Tohmatsu have reviewed the interim financial statements[77](index=77&type=chunk) [Events After Reporting Period](index=24&type=section&id=Events%20After%20Reporting%20Period) As of the date of this announcement, no other significant events affecting the Group have occurred after the reporting period - No other significant events affecting the Group have occurred after the reporting period and up to the date of this announcement[78](index=78&type=chunk) [Publication of Interim Results and Interim Report on the Company's and HKEX Websites](index=25&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report%20on%20the%20Company%27s%20and%20HKEX%20Websites) This announcement has been published on the Company's and HKEX websites, and the 2025 interim report will be available on these websites in due course - This announcement and the 2025 interim report will be published on the Company's website www.mecommacau.com and the HKEX website www.hkexnews.hk[79](index=79&type=chunk) [Acknowledgement](index=25&type=section&id=Acknowledgement) The Board expresses gratitude for the support from the Group's management, all employees, shareholders, business partners, and other professionals - The Board expresses gratitude for the support from the Group's management, all employees, shareholders, business partners, and other professionals[80](index=80&type=chunk) [Board of Directors](index=25&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises two executive directors and three independent non-executive directors - The executive directors are Mr. Kwok Lam Sik and Mr. Sou Kun Tou, and the independent non-executive directors are Ms. Chan Po Yee, Mr. Cheung Kiu Chor, and Mr. Liu Wing Tung[81](index=81&type=chunk)

[Report Overview](index=1&type=section&id=Report_Overview) [Company Information and Report Statement](index=1&type=section&id=Company_Info) This announcement presents the unaudited interim results of Gaopeng Mining Holdings Limited for the six months ended June 30, 2025, including comparative financial data from the same period in 2024 - The report covers the unaudited condensed consolidated interim results of Gaopeng Mining Holdings Limited and its subsidiaries for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Interim Condensed Consolidated Financial Statements](index=1&type=section&id=Financial_Statements) [Interim Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Income_Statement) For the six months ended June 30, 2025, revenue fell sharply by 77.88% to RMB 9,926 thousand, but the loss attributable to owners narrowed by 10.08% to RMB 8,760 thousand due to lower finance costs Key Data from the Interim Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 9,926 | 44,895 | -77.88% | | Cost of sales | (9,251) | (43,804) | -78.88% | | Gross profit | 675 | 1,091 | -38.13% | | Other income | 119 | 123 | -3.25% | | Selling and distribution expenses | (33) | – | N/A | | Administrative expenses | (8,225) | (7,626) | +7.86% | | Finance costs | (2,397) | (3,577) | -33.00% | | Loss before tax | (9,725) | (9,883) | -1.60% | | Loss for the period | (8,760) | (9,711) | -9.79% | | Loss attributable to owners of the Company | (8,760) | (9,742) | -10.08% | | Basic and diluted loss per share (RMB cents) | 0.83 | 0.94 | -11.70% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Comprehensive_Income_Statement) For the six months ended June 30, 2025, total comprehensive loss narrowed to RMB 9,090 thousand from RMB 9,605 thousand in the prior-year period, mainly due to a smaller period loss and changes in exchange differences Key Data from the Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Loss for the period | (8,760) | (9,711) | 951 | | Exchange differences on translation of foreign operations | (330) | 105 | -435 | | Total comprehensive income for the period | (9,090) | (9,605) | 515 | | Attributable to owners of the Company | (9,090) | (9,636) | 546 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Financial_Position_Statement) As of June 30, 2025, the company shifted to a net current liability position due to a significant increase in current liabilities, while total non-current assets slightly decreased, resulting in reduced net assets and total equity Key Data from the Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Total non-current assets | 120,513 | 121,539 | -1,026 | | Total current assets | 40,249 | 37,123 | +3,126 | | Total current liabilities | 48,187 | 33,852 | +14,335 | | Net current (liabilities)/assets | (7,938) | 3,271 | -11,209 | | Total assets less current liabilities | 112,575 | 124,810 | -12,235 | | Total non-current liabilities | 74,696 | 77,841 | -3,145 | | Net assets | 37,879 | 46,969 | -9,090 | | Total equity | 37,879 | 46,969 | -9,090 | - **Trade receivables increased significantly** to RMB 11,103 thousand as of June 30, 2025, from RMB 1,619 thousand as of December 31, 2024[6](index=6&type=chunk) - **Cash and cash equivalents decreased** to RMB 13,986 thousand as of June 30, 2025, from RMB 20,293 thousand as of December 31, 2024[6](index=6&type=chunk) - **Trade payables increased substantially** to RMB 10,949 thousand as of June 30, 2025, from RMB 503 thousand as of December 31, 2024[6](index=6&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes_to_Financial_Information) [1. Company Information](index=6&type=section&id=Note_1_Company_Info) The company, incorporated in the Cayman Islands, primarily engages in marble block excavation and sales, marble product manufacturing, mineral commodity trading, and coal trading, and has had no controlling shareholder since January 23, 2024 - The Company is an investment holding company primarily engaged in the excavation and sale of marble blocks, production and sale of marble products, and trading of mineral commodities and coal[8](index=8&type=chunk)[11](index=11&type=chunk) - Since January 23, 2024, Zhongke Jiutai Technology Group Co, Ltd and Mr Li Yuguo ceased to be the Company's holding company and ultimate controlling shareholder, and the Company has had no controlling shareholder since then[8](index=8&type=chunk) [2. Summary of Significant Accounting Policies](index=6&type=section&id=Note_2_Accounting_Policies) The interim financial information is prepared in accordance with IAS 34, and the adoption of new and revised IFRSs effective January 1, 2025, had no material impact on the Group's financial statements - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the 2024 annual consolidated financial statements[9](index=9&type=chunk) - The adoption of new and revised IFRSs, including amendments to IAS 21 "Lack of Exchangeability," did not have a significant impact on the Group's interim condensed consolidated financial statements[10](index=10&type=chunk) [3. Operating Segment Information](index=7&type=section&id=Note_3_Segment_Information) The Group's operating segments include marble blocks and commodity trading, with commodity trading revenue declining sharply in H1 2025 while the marble block segment generated revenue for the first time Operating Segment Revenue and Results | Segment | 2025 Revenue (RMB'000) | 2024 Revenue (RMB'000) | 2025 Segment Results (RMB'000) | 2024 Segment Results (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | Marble blocks | 102 | – | (1,634) | (1,480) | | Commodity trading | 9,824 | 44,895 | 152 | 616 | | Total | 9,926 | 44,895 | (1,482) | (864) | - **Revenue from the commodity trading segment decreased significantly** to RMB 9,824 thousand in 2025 from RMB 44,895 thousand in the same period of 2024[12](index=12&type=chunk) - The marble blocks segment generated **revenue of RMB 102 thousand for the first time** in 2025, compared to zero in the same period of 2024[12](index=12&type=chunk) [4. Revenue](index=9&type=section&id=Note_4_Revenue) Total revenue for the period was RMB 9,926 thousand, a significant decrease from the prior year, primarily due to reduced revenue from commodity trading (coal sales) Revenue Composition and Geographical Market | Product Type/Geographical Market | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Sale of scrap stones (Marble blocks) | 102 | – | | Sale of coal (Commodity trading) | 9,824 | 44,895 | | **Total** | **9,926** | **44,895** | | Mainland China | 9,926 | 44,895 | - All revenue was recognized in Mainland China and at a point in time when goods were transferred[15](index=15&type=chunk)[16](index=16&type=chunk) [5. Other Income](index=11&type=section&id=Note_5_Other_Income) Other income for the period was RMB 119 thousand, a slight decrease from the prior year, mainly comprising bank interest income and other miscellaneous income Details of Other Income | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Bank interest income | 53 | 120 | | Others | 66 | 3 | | **Total** | **119** | **123** | [6. Finance Costs](index=11&type=section&id=Note_6_Finance_Costs) Finance costs for the period decreased significantly by 33% to RMB 2,397 thousand, primarily due to a substantial reduction in interest on borrowings Details of Finance Costs | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Interest on lease liabilities | 146 | 44 | | Interest on discounted reclamation provision | 59 | 55 | | Interest on borrowings | 692 | 2,147 | | Interest on consideration payable for mining right | 1,500 | 1,331 | | **Total** | **2,397** | **3,577** | - **Interest on borrowings decreased sharply** to RMB 692 thousand in 2025 from RMB 2,147 thousand in 2024[18](index=18&type=chunk) [7. Loss Before Tax](index=12&type=section&id=Note_7_Loss_Before_Tax) The loss before tax for the period was RMB 9,725 thousand, a slight narrowing from the prior year, influenced by factors such as cost of sales, staff costs, depreciation, and finance costs Composition of Loss Before Tax | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Cost of inventories sold | 9,251 | 43,804 | | Staff costs (wages and salaries) | 3,918 | 3,098 | | Staff costs (pension scheme contributions) | 261 | 219 | | Depreciation of property, plant and equipment | 729 | 711 | | Depreciation of right-of-use assets | 1,364 | 1,478 | | Net exchange differences | (159) | 134 | | Fair value changes of financial assets at fair value through profit or loss | (2) | 3 | - **Staff costs, including directors' remuneration, increased** to RMB 4,179 thousand in 2025 from RMB 3,317 thousand in 2024[19](index=19&type=chunk) - **Net exchange differences shifted from a loss** of RMB 134 thousand in 2024 to a gain of RMB 159 thousand in 2025[19](index=19&type=chunk) [8. Income Tax](index=13&type=section&id=Note_8_Income_Tax) The total income tax credit for the period was RMB 965 thousand, primarily from a deferred tax credit, with Mainland China subsidiaries subject to a 25% corporate income tax rate and some qualifying for preferential rates Details of Income Tax Credit | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Current - Mainland China (Provision for the period) | 4 | 25 | | Deferred (Tax credit for the period) | (969) | (197) | | **Total tax credit for the period** | **(965)** | **(172)** | - Subsidiaries in Mainland China are generally subject to a 25% corporate income tax rate, while those qualifying as small and micro enterprises enjoy a reduced rate of 20% on 25% of their assessable income[20](index=20&type=chunk) [9. Loss Per Share Attributable to Ordinary Equity Holders of the Company](index=14&type=section&id=Note_9_Loss_Per_Share) The basic and diluted loss per share for the period was RMB 0.83 cents, a reduction from RMB 0.94 cents in the prior year, mainly due to the decreased loss attributable to the owners of the Company Calculation of Loss Per Share | Indicator | 2025 (RMB'000/shares) | 2024 (RMB'000/shares) | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the Company | (8,760) | (9,742) | | Weighted average number of ordinary shares in issue | 1,053,259,200 | 1,035,897,785 | | **Basic and diluted loss per share (RMB cents)** | **0.83** | **0.94** | - Basic and diluted loss per share were the same as there were no potential dilutive ordinary shares in issue during the period[23](index=23&type=chunk) [10. Dividends](index=14&type=section&id=Note_10_Dividends) The Board of Directors did not declare or recommend the payment of an interim dividend for the six months ended June 30, 2025 - No interim dividend was declared or proposed for the six months ended June 30, 2025[25](index=25&type=chunk) [11. Property, Plant and Equipment, Right-of-Use Assets and Other Intangible Assets](index=15&type=section&id=Note_11_PPE_ROU_Intangibles) As of June 30, 2025, the carrying amounts of property, plant and equipment and right-of-use assets decreased, while other intangible assets remained unchanged, with minor additions to PPE during the period Changes in Asset Carrying Amounts | Asset Class | January 1, 2025 (RMB'000) | Additions (RMB'000) | Depreciation/Amortisation (RMB'000) | June 30, 2025 (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | Property, plant and equipment | 15,816 | 186 | (729) | 15,241 | | Right-of-use assets | 5,468 | – | (1,364) | 4,048 | | Other intangible assets | 100,255 | – | – | 100,255 | [12. Trade Receivables](index=15&type=section&id=Note_12_Trade_Receivables) As of June 30, 2025, trade receivables increased significantly to RMB 11,103 thousand, with the entire balance aged within one month Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Within 1 month | 11,103 | 1,619 | [13. Prepayments, Deposits and Other Receivables](index=15&type=section&id=Note_13_Prepayments_Deposits_Other_Receivables) As of June 30, 2025, total prepayments, deposits, and other receivables were RMB 14,699 thousand, largely unchanged from year-end 2024, primarily consisting of a deposit for the acquisition of land use rights Details of Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Prepayments | 963 | 725 | | Deposit paid for acquisition of land use rights | 11,505 | 11,437 | | Other deposits and receivables | 2,231 | 2,561 | | **Total** | **14,699** | **14,723** | [14. Trade Payables](index=16&type=section&id=Note_14_Trade_Payables) As of June 30, 2025, trade payables increased substantially to RMB 10,949 thousand, with the majority aged within one month Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Within 1 month | 10,454 | – | | Over 3 months | 495 | 503 | | **Total** | **10,949** | **503** | [15. Lease Liabilities](index=16&type=section&id=Note_15_Lease_Liabilities) As of June 30, 2025, total lease liabilities decreased to RMB 2,884 thousand from RMB 4,212 thousand at year-end 2024, mainly due to a reduction in non-current lease liabilities Details of Lease Liabilities | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Current | 2,779 | 2,710 | | Non-current | 105 | 1,502 | | **Total** | **2,884** | **4,212** | [16. Borrowings](index=16&type=section&id=Note_16_Borrowings) As of June 30, 2025, long-term borrowings stood at RMB 42,708 thousand, a decrease from year-end 2024, with the borrowings being unsecured, unguaranteed, and repayable between 2027 and 2028 Details of Borrowings | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Long-term borrowings - unsecured | 42,708 | 46,708 | - The borrowings are unsecured, unguaranteed, bear interest at annual rates from 3% to 10%, and are repayable between January 25, 2027, and July 9, 2028[29](index=29&type=chunk) [17. Reclamation Provision](index=16&type=section&id=Note_17_Reclamation_Provision) As of June 30, 2025, the reclamation provision was RMB 1,804 thousand, a slight increase from year-end 2024, representing the estimated cost of mine closure and environmental restoration obligations Changes in Reclamation Provision | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | At beginning of period/year | 1,745 | 1,635 | | Unwinding of discount | 59 | 110 | | **At end of period/year** | **1,804** | **1,745** | - The reclamation provision is discounted at a rate of 6.55% and represents the estimated costs for mine closure, environmental restoration, and clean-up responsibilities[31](index=31&type=chunk) [18. Share Capital](index=17&type=section&id=Note_18_Share_Capital) As of June 30, 2025, the Company's issued share capital was RMB 4,323 thousand, unchanged from year-end 2024, following a share placement in January 2024 that increased share capital and share premium Share Capital Summary | Item | Number of issued shares | Share Capital (RMB'000) | Share Premium (RMB'000) | Total (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | At January 1, 2024 | 877,716,000 | 3,524 | 130,899 | 134,423 | | Placing of shares | 175,543,200 | 799 | 31,951 | 32,750 | | Share issue expenses | – | – | (622) | (622) | | **At December 31, 2024 and June 30, 2025** | **1,053,259,200** | **4,323** | **162,228** | **166,551** | - A share placement of 175,543,200 shares was completed on January 19, 2024, with net proceeds of approximately RMB 32,750 thousand, of which RMB 799 thousand was credited to share capital and RMB 31,951 thousand to share premium[32](index=32&type=chunk) [19. Related Party Transactions](index=18&type=section&id=Note_19_Related_Party_Transactions) Remuneration for key management personnel during the period was RMB 2,300 thousand, an increase from the prior year, primarily comprising salaries, allowances, and pension contributions Key Management Personnel Remuneration | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 2,241 | 1,879 | | Pension scheme contributions | 59 | 50 | | **Total** | **2,300** | **1,929** | [20. Fair Value and Fair Value Hierarchy of Financial Instruments](index=18&type=section&id=Note_20_Fair_Value_Financial_Instruments) As of June 30, 2025, financial assets at fair value through profit or loss had a carrying amount and fair value of RMB 14 thousand, consisting of investments in Hong Kong listed shares measured using quoted prices in active markets (Level 1) Fair Value of Financial Assets | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Financial assets at FVPL (Carrying amount) | 14 | 12 | | Financial assets at FVPL (Fair value) | 14 | 12 | - Financial assets at fair value through profit or loss primarily consist of investments in Hong Kong listed shares, with fair value measured based on quoted prices in active markets (Level 1)[36](index=36&type=chunk)[38](index=38&type=chunk) [21. Events After the Reporting Period](index=19&type=section&id=Note_21_Subsequent_Events) The Directors are not aware of any significant events requiring disclosure that occurred after June 30, 2025, and up to the date of this announcement - The Directors are not aware of any significant events requiring disclosure that occurred after the end of the reporting period and up to the date of this announcement[39](index=39&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=MD_A) [Financial Review](index=20&type=section&id=Financial_Review) During the period, the company's revenue declined significantly due to weak demand and lower prices in the coal trade, but the loss attributable to owners narrowed as finance costs were reduced through loan repayments and favorable interest rate negotiations [Revenue](index=20&type=section&id=MD_A_Revenue) Operating revenue for the period decreased by 77.88% year-on-year to approximately RMB 9.93 million, primarily due to weak market demand in China and a decline in coal prices, which significantly reduced commodity trading revenue - **Operating revenue decreased by 77.88%** year-on-year to approximately RMB 9.93 million, mainly due to weak market demand in China and a decline in coal prices[41](index=41&type=chunk) - The marble blocks segment generated **revenue of approximately RMB 100 thousand for the first time** from the sale of scrap stones from the Yiduoyan Project expansion[41](index=41&type=chunk) [Cost of Sales](index=21&type=section&id=MD_A_Cost_of_Sales) The cost of sales decreased by approximately 78.88% year-on-year to RMB 9.25 million, in line with the decline in commodity trading revenue, while the cost of scrap stones sold from the marble block segment was nil - **Cost of sales decreased by approximately 78.88%** year-on-year to about RMB 9.25 million, primarily from the coal trading business in the commodity trading segment[43](index=43&type=chunk) - The cost of scrap stones sold by the marble blocks segment was nil as they were generated from the mine expansion project and no mining operations occurred during the period[43](index=43&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=MD_A_Gross_Profit_Margin) Gross profit for the period decreased to approximately RMB 680 thousand, but the gross profit margin increased from 2.43% to 6.80%, mainly driven by the 100% margin on zero-cost scrap stone sales and an improved margin in commodity trading Gross Profit and Margin Comparison | Segment | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | | Marble blocks | 100.00% | 0.00% | | Commodity trading | 5.83% | 2.43% | | **Total** | **6.80%** | **2.43%** | - The **overall gross profit margin increased from 2.43% to 6.80%**, primarily because the marble blocks segment sold scrap stones at zero cost, achieving a 100.00% gross profit margin[44](index=44&type=chunk) [Other Income](index=21&type=section&id=MD_A_Other_Income) Other income slightly decreased by approximately RMB 4 thousand to RMB 119 thousand, consisting mainly of bank interest income and miscellaneous income - Other income slightly decreased by approximately RMB 4 thousand to RMB 119 thousand, primarily comprising bank interest income and miscellaneous income[45](index=45&type=chunk) [Selling and Distribution Expenses](index=22&type=section&id=MD_A_Sales_Distribution_Expenses) Selling and distribution expenses for the period were approximately RMB 33 thousand, mainly for marble slab sample fees and related transportation costs, representing about 0.33% of revenue - Selling and distribution expenses for the period were approximately RMB 33 thousand, mainly for marble slab sample and transportation fees, accounting for about 0.33% of revenue[46](index=46&type=chunk) [Administrative Expenses](index=22&type=section&id=MD_A_Administrative_Expenses) Administrative expenses increased by approximately 7.86% to RMB 8.23 million, primarily due to higher costs for directors and staff - **Administrative expenses increased by approximately 7.86%** to about RMB 8.23 million, mainly due to an increase in director and staff costs[47](index=47&type=chunk) [Gain or Loss on Fair Value Changes of Financial Assets at Fair Value through Profit or Loss](index=22&type=section&id=MD_A_FVPL_Financial_Assets) The period recorded a net fair value gain on equity investments of approximately RMB 2 thousand, compared to a net loss of RMB 3 thousand in the prior-year period - The period recorded a **net fair value gain on equity investments of approximately RMB 2 thousand**, reversing a net loss of about RMB 3 thousand in the same period last year[48](index=48&type=chunk) [Other Operating Income](index=22&type=section&id=MD_A_Other_Operating_Income) Other operating income increased to RMB 130 thousand, primarily driven by a net foreign exchange gain of approximately RMB 160 thousand, compared to a foreign exchange loss in the prior-year period - Other operating income increased to approximately RMB 130 thousand, mainly due to a **net foreign exchange gain of about RMB 160 thousand**, compared to a net foreign exchange loss of about RMB 130 thousand in the same period last year[49](index=49&type=chunk) [Finance Costs](index=23&type=section&id=MD_A_Finance_Costs) Finance costs decreased by approximately 33% to RMB 2.4 million, mainly due to a significant reduction in interest on borrowings as the company repaid part of its loans and negotiated more favorable rates - **Finance costs decreased by approximately 33%** to about RMB 2.4 million, primarily due to a significant reduction in interest on borrowings to about RMB 690 thousand[50](index=50&type=chunk) - The company has begun repaying part of its loans and agreed on more favorable interest rates with lenders in the second quarter of 2024[50](index=50&type=chunk) [Loss Attributable to Owners of the Company](index=23&type=section&id=MD_A_Loss_Attributable_to_Owners) The loss attributable to the owners of the Company narrowed by approximately 10.06% to RMB 8.76 million - The **loss attributable to the owners of the Company narrowed by approximately 10.06%** to about RMB 8.76 million[51](index=51&type=chunk) [Business Review](index=23&type=section&id=Business_Review) During the period, business activities focused on the Yiduoyan Project's expansion, which paused mining operations but generated minor revenue from scrap stone sales, while the commodity trading business saw a sharp revenue decline due to weak market conditions [Marble and Marble-related Business](index=23&type=section&id=MD_A_Marble_Business) The company continued to focus on the expansion of the Yiduoyan Project during the period, with no excavation work conducted, but generated approximately RMB 100 thousand in revenue from selling scrap stones from the expansion - The company continued to focus on the expansion project of the Yiduoyan Project during the period, with no excavation work conducted[52](index=52&type=chunk) - The marble blocks segment generated approximately **RMB 100 thousand in revenue** from the sale of scrap stones produced during the expansion project[52](index=52&type=chunk) [Commodity Trading Business](index=24&type=section&id=MD_A_Commodity_Trading) Commodity trading revenue decreased significantly from RMB 44.9 million to RMB 9.82 million due to weak demand and lower coal prices in China, while the company actively sourced suppliers to ensure stable supply - **Commodity trading revenue decreased from approximately RMB 44.9 million to about RMB 9.82 million**, mainly due to weak demand in the Chinese market and a decline in coal prices[53](index=53&type=chunk) - The company is actively sourcing suppliers and has entered into framework procurement contracts to ensure a stable supply and quality of coal[53](index=53&type=chunk) [Yiduoyan Project](index=24&type=section&id=MD_A_Yiduoyan_Project) The mining permit for the Yiduoyan Project was successfully renewed on July 12, 2023, for a 20-year term, with an increased annual production capacity of 540,000 tonnes, paving the way for expanded future production - The mining permit for the Yiduoyan Project was successfully renewed on July 12, 2023, for a term of 20 years, until July 12, 2043[54](index=54&type=chunk) - The **permitted annual production scale increased to 540,000 tonnes** (approximately 200,000 cubic meters), a significant increase from the original 20,000 cubic meters, with plans to expand mining production in the future[54](index=54&type=chunk) [Principal Exploration, Development and Production Activities](index=25&type=section&id=MD_A_Exploration_Development_Production) No further mineral exploration was conducted during the period, while the Yiduoyan Project's expansion continued with mining operations suspended and development expenditure amounting to approximately RMB 1.05 million - No further mineral exploration work was carried out during the period, and there was no related expenditure[55](index=55&type=chunk) - The expansion of the Yiduoyan Project is ongoing with mining operations suspended, and **development expenditure was approximately RMB 1.05 million**, mainly for engineering surveys, environmental consulting, and site leveling[56](index=56&type=chunk)[57](index=57&type=chunk) [Mining Operations](index=26&type=section&id=MD_A_Mining_Operations) No excavation work was performed during the period due to the Yiduoyan Project's expansion, resulting in zero production and sales of marble blocks and a nil per-cubic-meter cost for mining activities - No excavation work was conducted during the period due to the expansion of the Yiduoyan Project, resulting in no production or sales of marble blocks[58](index=58&type=chunk) [Future Prospects](index=26&type=section&id=Future_Prospects) The company is cautiously optimistic about its marble business, planning for stable growth through expansion and new client acquisition, with regular production expected to resume in Q2 or Q3 2026, while continuing to develop its commodity trading business [Development of Marble and Marble-related Business](index=26&type=section&id=MD_A_Marble_Business_Development) The company is cautiously optimistic about the marble business, actively seeking new customers, and expects to complete the mine expansion and resume regular production and revenue generation by Q2 or Q3 2026 - The company is **cautiously optimistic about the future prospects of its marble business** and is actively exploring new customers[59](index=59&type=chunk) - The mine expansion and construction of mining facilities are expected to be completed in the **second or third quarter of 2026**, at which time regular marble production and revenue generation are expected to resume[59](index=59&type=chunk) - The company has signed sales contracts for marble slabs and received partial deposits, with more sales contracts anticipated after the expansion is completed[59](index=59&type=chunk) [Expansion of Commodity Trading Business](index=27&type=section&id=MD_A_Commodity_Trading_Expansion) The company will continue to develop its commodity trading business to diversify its business portfolio and revenue streams, while also seeking other attractive opportunities beyond coal trading as they arise - The company will continue to develop its commodity trading business to expand its business portfolio, diversify revenue sources, and enhance financial performance[60](index=60&type=chunk) - In addition to coal trading, the company will also seek other attractive business opportunities[60](index=60&type=chunk) [Major Investments](index=27&type=section&id=Major_Investments) The company had no major investments during the period - The company had no major investments during the period[61](index=61&type=chunk) [Future Plans for Major Investments and Capital Assets](index=27&type=section&id=Future_Investment_Plans) As of June 30, 2025, the Group had no other plans for major investments or capital assets beyond those already disclosed - As of June 30, 2025, the Group had no other plans for major investments or capital assets other than those disclosed in this announcement[62](index=62&type=chunk) [Interim Dividends](index=27&type=section&id=Interim_Dividends) The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[63](index=63&type=chunk) [Major Acquisitions and Disposals during the Period](index=27&type=section&id=Major_Acquisitions_Disposals) The company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - The company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[64](index=64&type=chunk) [Liquidity, Capital Resources and Gearing Ratio](index=27&type=section&id=Liquidity_Capital_Resources_Gearing) During the period, liquidity was primarily used for mine development and operations, funded by equity injections, third-party borrowings, and operating cash flow, resulting in a higher gearing ratio and lower current ratio - Liquidity was primarily used for mine development and operations, with funding sources including equity injections, third-party borrowings, and cash generated from operations[65](index=65&type=chunk) Liquidity and Gearing Metrics | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | Approx RMB 13.99 million | Approx RMB 20.29 million | | Borrowings | Approx RMB 42.71 million | Approx RMB 46.71 million | | Gearing ratio | 1.13 times | 0.99 times | | Current ratio | 0.84 times | 1.10 times | - The **gearing ratio** (long-term liabilities divided by total shareholders' equity) increased from 0.99 times to 1.13 times[66](index=66&type=chunk) - The **current ratio decreased from 1.10 times to 0.84 times**, indicating a weakening of short-term solvency[66](index=66&type=chunk) [Pledge of Group's Assets](index=28&type=section&id=Group_Assets_Pledged) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[67](index=67&type=chunk) [Capital Structure](index=28&type=section&id=Capital_Structure) There were no significant changes in the Group's capital structure since December 31, 2024 - There were no significant changes in the Group's capital structure since December 31, 2024[68](index=68&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=Employees_Remuneration_Policy) As of June 30, 2025, the Group had 28 full-time employees, with remuneration packages reviewed regularly, including basic salary, benefits, and training programs - As of June 30, 2025, the Group had a total of 28 full-time employees (including directors)[69](index=69&type=chunk) - Remuneration packages are reviewed periodically based on individual performance and market practices, including basic salary, benefits (such as MPF, social insurance, housing provident fund, medical benefits), and training programs[69](index=69&type=chunk) [Use of Proceeds from Placing of New Shares under General Mandate](index=29&type=section&id=Use_of_Proceeds_Share_Placement) The net proceeds of approximately RMB 32.1 million from the January 2024 share placement were allocated for the Yiduoyan Project expansion and general working capital, with the remaining balance earmarked for the project by September 2026 Use of Proceeds from Share Placement | Use | Net Proceeds Allocation (RMB million) | Amount Utilised as of June 30, 2025 (RMB million) | Unutilised Net Proceeds as of June 30, 2025 (RMB million) | | :--- | :--- | :--- | :--- | | Expansion and development of Yiduoyan Project facilities | 22.5 | 14.1 | 8.4 | | General working capital of the Group | 9.6 | 9.6 | – | | **Total** | **32.1** | **23.7** | **8.4** | - The remaining net proceeds of approximately **RMB 8.4 million are expected to be used for the expansion and development of the Yiduoyan Project facilities by September 30, 2026**[73](index=73&type=chunk) [Capital Commitments and Contingent Liabilities](index=30&type=section&id=Capital_Commitments_Contingent_Liabilities) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[74](index=74&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedges](index=30&type=section&id=Exchange_Rate_Risk_Hedging) The Group's monetary assets and transactions are mainly denominated in Hong Kong dollars and Renminbi, and no financial instruments were used for hedging during the period, but the company will continue to monitor and manage exchange rate risks - The Group's monetary assets and transactions are mainly denominated in Hong Kong dollars and Renminbi, and no financial instruments were used for hedging during the period[75](index=75&type=chunk) - The company will continue to monitor relevant foreign currency risks and take necessary procedures to mitigate currency risks arising from exchange rate fluctuations at a reasonable cost[75](index=75&type=chunk) [Other Matters](index=30&type=section&id=Other_Matters) The registered capital of a subsidiary was previously frozen due to a loan dispute involving a former controlling shareholder, but the order expired in May 2025, and the Board confirms the Group provided no guarantee and suffered no material operational impact - Approximately 50% of the registered capital of the Company's wholly-owned subsidiary, Xiangyang Gaopeng Mining Co, Ltd, was previously frozen due to a loan dispute between former executive director and controlling shareholder Mr Li Yuguo and Shengjing Bank[76](index=76&type=chunk)[77](index=77&type=chunk) - The freezing order expired in May 2025, and the Board confirms the Group provided no guarantee, warranty, or asset pledge for the loan dispute, and the order had no material impact on the Group's operations[77](index=77&type=chunk) [Corporate Governance Practices](index=31&type=section&id=Corporate_Governance_Practices) The company is committed to high corporate governance standards but has deviated from the Listing Rules' code by lacking directors' liability insurance and having an insufficient number of independent non-executive directors, which also affects committee compositions - The **directors' and senior officers' liability insurance expired on January 8, 2025**, and a new policy is not yet in effect, which does not comply with code provision C.1.7 of the Corporate Governance Code[78](index=78&type=chunk) - Following the retirement of Mr Wang Xiaolong, the number of independent non-executive directors and the composition of the Audit, Remuneration, and Nomination Committees **do not meet the minimum requirements** of Listing Rules 3.10(1), 3.21, 3.25, and 3.27A[79](index=79&type=chunk)[80](index=80&type=chunk) - The company is actively seeking suitable candidates to rectify the non-compliance within three months from the date of non-compliance[80](index=80&type=chunk) [Standard Code for Securities Transactions by Directors](index=32&type=section&id=Standard_Code_Securities_Transactions) All directors confirmed their compliance with the standard code for securities transactions by directors as set out in Appendix C3 of the Listing Rules during the period - All directors have confirmed their compliance with the standard code for securities transactions by directors as set out in Appendix C3 of the Listing Rules during the period[81](index=81&type=chunk) [Purchase, Sale or Redemption of Shares](index=32&type=section&id=Share_Transactions) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[82](index=82&type=chunk) [Other Information](index=33&type=section&id=Other_Information) [Events After the Reporting Period](index=33&type=section&id=Subsequent_Events_MD_A) The Directors are not aware of any significant events requiring disclosure that occurred after June 30, 2025, and up to the date of this announcement - The Directors are not aware of any significant events requiring disclosure that occurred after June 30, 2025, and up to the date of this announcement[83](index=83&type=chunk) [Review and Publication](index=33&type=section&id=Review_Publication) The Audit Committee has reviewed this announcement and the interim results, deeming them compliant with relevant accounting standards and Listing Rules, and the announcement will be published on the HKEX and company websites [Audit Committee Review of Accounts](index=33&type=section&id=Audit_Committee_Review) The Audit Committee has reviewed this announcement and the Group's unaudited financial results for the period, considering them to be prepared in accordance with relevant accounting standards and with appropriate disclosure - The Audit Committee has reviewed this announcement and the Group's unaudited financial results for the period and considers them to be prepared in accordance with relevant accounting standards and with appropriate disclosure[84](index=84&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=33&type=section&id=Publication_Interim_Report) This announcement is published on the websites of the Stock Exchange and the Company, and the 2025 interim report will be published in due course - This announcement is published on the website of the Stock Exchange (www.hkexnews.hk) and the Company's website (www.futurebrightltd.com)[85](index=85&type=chunk) - The 2025 interim report will be published on the websites of the Stock Exchange and the Company in due course[85](index=85&type=chunk) [Board of Directors Composition](index=33&type=section&id=Board_of_Directors_Composition) As of the date of this announcement, the Board of Directors comprises two executive directors, two non-executive directors, and two independent non-executive directors - As of the date of this announcement, the executive directors are Mr Sun Hailong and Mr Xue Yunfei; the non-executive directors are Mr Chen Jin and Ms Zhu Min; and the independent non-executive directors are Professor Lau Chi-pang, JP and Ms Huang Yunlong[86](index=86&type=chunk)

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Key Financial Indicators](index=1&type=section&id=%E9%97%9C%E9%8D%B5%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) The company's revenue slightly decreased, but gross profit, EBITDA, and adjusted net profit all grew, achieving a turnaround from loss to profit Key Financial Indicators | Indicator | Six Months Ended June 30, 2025 (USD million) | Six Months Ended June 30, 2024 (USD million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 126.6 | 128.5 | (1.5)% | | Gross Profit | 35.3 | 34.8 | 1.4% | | Gross Profit Margin | 27.9% | 27.1% | 0.8 ppt | | EBITDA | 27.0 | 23.7 | 13.9% | | EBITDA Margin | 21.4% | 18.4% | 3.0 ppt | | Adjusted EBITDA | 28.1 | 25.8 | 8.9% | | Adjusted EBITDA Margin | 22.2% | 20.1% | 2.1 ppt | | Net Profit/(Loss) | 2.9 | (0.3) | N/A (Turnaround) | | Net Profit/(Loss) Margin | 2.3% | (0.2%) | 2.5 ppt | | Adjusted Net Profit | 7.7 | 6.1 | 26.2% | | Adjusted Net Profit Margin | 6.1% | 4.8% | 1.3 ppt | | Earnings/(Loss) Per Share - Basic | 0.0014 | (0.0001) | N/A (Turnaround) | | Adjusted Earnings Per Share - Basic | 0.0038 | 0.0031 | 22.6% | - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[3](index=3&type=chunk) [Explanation of Non-IFRS Measures](index=2&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F%E8%AA%AA%E6%98%8E) The company provides adjusted non-IFRS measures to more accurately reflect business and operational performance by excluding non-recurring items - Non-IFRS measures (e.g., adjusted net profit, adjusted EBITDA) are intended to exclude the impact of exceptional, non-recurring, non-cash, and/or non-operating items to better assess the company's underlying performance and operating trends[4](index=4&type=chunk) - Adjusted EBITDA excludes share-based compensation expenses, gains or losses from financial liabilities at FVTPL, and M&A-related expenses[5](index=5&type=chunk) - Adjusted net profit excludes share-based compensation expenses, amortization of intangible assets from acquisitions, gains or losses from financial liabilities at FVTPL, and M&A-related expenses[5](index=5&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%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 company achieved a net profit of $2.923 million, a turnaround from a net loss of $300 thousand in the prior year period Key Performance Indicators | Indicator | Six Months Ended June 30, 2025 (USD thousand) | Six Months Ended June 30, 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 126,578 | 128,475 | (1.5)% | | Cost of services | (91,267) | (93,633) | (2.5)% | | Gross profit | 35,311 | 34,842 | 1.4% | | Profit before tax | 5,107 | 397 | 1186.4% | | Profit/(loss) for the period | 2,923 | (300) | N/A (Turnaround) | | Total comprehensive income/(expense) for the period | 6,054 | (2,973) | N/A (Turnaround) | | Basic earnings/(loss) per share (USD) | 0.0014 | (0.0001) | N/A (Turnaround) | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total assets slightly decreased, while net assets grew primarily due to an increase in reserves Key Balance Sheet Items | Indicator | As of June 30, 2025 (USD thousand) | As of December 31, 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 412,012 | 415,860 | (0.9)% | | Current assets | 132,256 | 137,733 | (4.0)% | | Current liabilities | 106,343 | 111,540 | (4.6)% | | Net current assets | 25,913 | 26,193 | (1.1)% | | Net assets | 341,435 | 334,269 | 2.1% | | Total equity | 341,435 | 334,269 | 2.1% | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1. General Information](index=7&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Frontage Holdings Corporation provides laboratory, bioequivalence, and chemistry services to pharmaceutical and agrochemical companies - The company's principal business is providing laboratory and related services, as well as bioequivalence clinical and chemistry services, to pharmaceutical and agrochemical companies[11](index=11&type=chunk) - The functional currencies of the company and its operating subsidiaries include USD, RMB, CAD, and EUR, with the presentation currency being USD[11](index=11&type=chunk) [2. Basis of Preparation and Significant Accounting Policies](index=7&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%B3%87%E6%96%99) The financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules, with no material impact from newly adopted IFRS standards - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of Appendix D2 of the HKEX Listing Rules[12](index=12&type=chunk) - The initial application of new and revised IFRS standards has had no material impact on the financial position and performance for the current and prior periods[14](index=14&type=chunk) [3. Revenue](index=8&type=section&id=3.%20%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, total revenue was $126.578 million, with laboratory testing services being the largest contributor Revenue by Source | Revenue Source | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Drug discovery | 13,180 | 15,820 | | Drug development | 41,732 | 42,797 | | Medical product development | 4,790 | 3,603 | | Laboratory testing | 66,876 | 66,255 | | **Total** | **126,578** | **128,475** | [4. Segment Information](index=8&type=section&id=4.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The company operates through North America & Europe and China segments, with the former contributing the majority of revenue and profit - The Group's reportable segments are North America & Europe and China, covering drug discovery, drug development, medical product development, and laboratory testing services[17](index=17&type=chunk)[21](index=21&type=chunk) H1 2025 Segment Revenue and Profit (USD thousand) | Segment | Revenue | Cost of Services | Segment Profit/(Loss) | | :--- | :--- | :--- | :--- | | North America & Europe | 98,585 | (68,653) | 6,773 | | China | 27,993 | (22,614) | (1,666) | | **Total** | **126,578** | **(91,267)** | **5,107 (Profit before tax)** | H1 2025 Revenue from External Customers by Country/Region (USD thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | United States and Canada | 99,649 | 94,830 | | China | 21,485 | 22,428 | | Rest of the world | 5,444 | 11,217 | | **Total** | **126,578** | **128,475** | [5. Other Income](index=11&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, other income totaled $1.360 million, a decrease year-over-year Other Income by Source | Other Income Source | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Interest income | 189 | 498 | | Government grants related to revenue | 757 | 360 | | Income from technical support services | 414 | 1,161 | | **Total** | **1,360** | **2,019** | [6. Other Net Gains and Losses](index=11&type=section&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, other net gains and losses were $662 thousand, a significant increase driven by net foreign exchange gains Breakdown of Other Net Gains and Losses | Item | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Loss on financial liabilities at FVTPL | – | (159) | | Gain on disposal of property, plant and equipment | 3 | 179 | | Net foreign exchange gain | 693 | 502 | | Others | (34) | (320) | | **Total** | **662** | **202** | [7. Finance Costs](index=11&type=section&id=7.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs were $4.215 million, a slight decrease year-over-year Breakdown of Finance Costs | Item | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Interest expense on lease liabilities | 1,588 | 1,540 | | Interest expense on bank borrowings | 2,627 | 2,755 | | **Total** | **4,215** | **4,295** | [8. Profit Before Tax](index=12&type=section&id=8.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) For the six months ended June 30, 2025, profit before tax was $5.107 million, a substantial increase from the prior year period Expenses by Nature | Item | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Staff costs (including directors' remuneration) | 57,954 | 64,636 | | Depreciation of property, plant and equipment | 9,063 | 9,354 | | Depreciation of right-of-use assets | 4,804 | 5,154 | | Amortisation of intangible assets | 3,847 | 4,460 | [9. Income Tax Expense](index=12&type=section&id=9.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense increased to $2.184 million, primarily due to higher pre-tax income Breakdown of Income Tax Expense | Item | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Current tax total | 4,329 | 2,507 | | Deferred tax | (2,145) | (1,810) | | **Total income tax expense** | **2,184** | **697** | - The combined US federal and state income tax rate is **27.05%** (2024: 26.7%)[30](index=30&type=chunk) - Certain Chinese subsidiaries, including Frontage Shanghai, Concord Shanghai, and Heyan Bio, are recognized as High and New Technology Enterprises or Technologically Advanced Service Enterprises, qualifying for a preferential tax rate of **15%** for three years[31](index=31&type=chunk)[32](index=32&type=chunk) [10. Earnings/(Loss) Per Share](index=13&type=section&id=10.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%EF%B9%95%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89) For the six months ended June 30, 2025, basic earnings per share was $0.0014, a turnaround from a loss in the prior year period Earnings Per Share | Indicator | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 0.0014 | (0.0001) | | Diluted earnings/(loss) per share | 0.0014 | (0.0001) | - The weighted average number of ordinary shares for basic EPS calculation was **2,026,369,855**, and **2,027,832,482** for diluted EPS[34](index=34&type=chunk) [11. Dividends](index=14&type=section&id=11.%20%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[35](index=35&type=chunk) [12. Trade and Other Receivables and Prepayments](index=14&type=section&id=12.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade and other receivables and prepayments totaled $73.814 million, an increase of 6.8% from year-end 2024 Breakdown of Receivables and Prepayments | Item | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Trade receivables (net) | 63,379 | 59,828 | | Other receivables (net) | 2,191 | 2,533 | | Prepayments | 5,328 | 3,794 | | Recoverable VAT | 2,840 | 2,848 | | **Total** | **73,814** | **69,091** | - The credit period for trade receivables ranges from **30 to 90 days**[36](index=36&type=chunk) [13. Unbilled Revenue](index=15&type=section&id=13.%20%E6%9C%AA%E9%96%8B%E7%A5%A8%E6%94%B6%E5%85%A5) As of June 30, 2025, unbilled revenue was $21.004 million, an 11.1% increase from year-end 2024, reflecting recognized but unbilled contract assets Breakdown of Unbilled Revenue | Item | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Unbilled revenue (third parties) | 20,211 | 18,604 | | Unbilled revenue (related parties) | 1,634 | 1,072 | | Less: Loss allowance | (841) | (787) | | **Total** | **21,004** | **18,889** | [14. Restricted Bank Deposits/Cash and Cash Equivalents](index=15&type=section&id=14.%20%E5%8F%97%E9%99%90%E5%88%B6%E9%8A%80%E8%A1%8C%E5%AD%98%E6%AC%BE%EF%B9%95%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) As of June 30, 2025, restricted bank deposits totaled $687 thousand, while cash and cash equivalents stood at $33.662 million - Restricted bank deposits include a **$300 thousand** cash deposit for a property lease agreement in New Jersey and a **$387 thousand** deposit required by the Pennsylvania Department of Environmental Protection[38](index=38&type=chunk) - As of June 30, 2025, the annual interest rates on bank deposits ranged from **0.02% to 4.18%**[38](index=38&type=chunk) [15. Trade and Other Payables](index=16&type=section&id=15.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade and other payables totaled $21.142 million, a 9.3% increase from year-end 2024 Breakdown of Payables | Item | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Trade payables (total) | 10,388 | 8,659 | | Notes payable (third parties) | 857 | – | | Other payables (total) | 3,062 | 3,355 | | Salaries and bonuses payable | 6,465 | 6,418 | | Other tax payables | 370 | 862 | | **Total** | **21,142** | **19,294** | - Payment terms with suppliers are primarily on credit of **30 to 90 days** from the invoice date[39](index=39&type=chunk) [16. Advances from Customers](index=17&type=section&id=16.%20%E5%AE%A2%E6%88%B6%E5%A2%8A%E6%AC%BE) As of June 30, 2025, advances from customers were $28.369 million, a 6.3% decrease from year-end 2024 Breakdown of Advances from Customers | Item | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Advances from customers (third parties) | 27,399 | 29,439 | | Advances from customers (related parties) | 970 | 897 | | **Total** | **28,369** | **30,336** | - The decrease in advances from customers was mainly related to the Group's performance of services under relevant contracts, which were converted into revenue[40](index=40&type=chunk)[83](index=83&type=chunk) [17. Bank Borrowings](index=17&type=section&id=17.%20%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2025, total bank borrowings were $78.628 million, a 17.8% decrease from year-end 2024 due to repayments Bank Borrowings Details | Item | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Secured and unsecured bank loans | 78,628 | 95,670 | | Due within one year | 44,516 | 51,228 | | Due after one year | 34,112 | 44,442 | | Annual interest rate range | 2.60%-6.45% | 2.75%-6.73% | [18. Share Capital](index=18&type=section&id=18.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's issued and fully paid share capital was $20 thousand, representing 2,035,724,910 shares Share Capital Details | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of issued and fully paid shares | 2,035,724,910 | 2,035,724,910 | | Amount of issued and fully paid share capital (USD thousand) | 20 | 20 | [19. Treasury Shares](index=18&type=section&id=19.%20%E5%BA%AB%E5%AD%98%E8%82%A1%E4%BB%BD) As of June 30, 2025, the company held 7,996,438 treasury shares, a decrease from year-end 2024 due to the vesting of share awards Treasury Shares Details | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of treasury shares | 7,996,438 | 12,084,002 | | Acquisition cost of treasury shares (USD thousand) | 313 | 313 | - The decrease in treasury shares was primarily due to the vesting of share awards[43](index=43&type=chunk) [20. Capital Commitments](index=18&type=section&id=20.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's capital commitments for the purchase of property, plant and equipment were $3.479 million Capital Commitments | Item | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Purchase of property, plant and equipment | 3,479 | 369 | [Management Discussion and Analysis](index=19&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) [Business Review](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Frontage Holdings is a global CRO providing comprehensive R&D services, with strong future contract revenue growth despite a slight revenue dip - Frontage is a globally integrated, science-driven contract research organization providing high-quality R&D services to the pharmaceutical, biotechnology, chemical, and life sciences industries[46](index=46&type=chunk) - The company's business is divided into the Global Drug Discovery and Development Services Division and the Global Laboratory Services Division[46](index=46&type=chunk) - For the six months ended June 30, 2025, total revenue was approximately **$126.6 million**, a decrease of 1.5% year-over-year[47](index=47&type=chunk) - As of June 30, 2025, contract future revenue reached approximately **$404.7 million**, an increase of 8.2% compared to June 30, 2024[47](index=47&type=chunk) - **Net profit in Q2 2025 was approximately $3.8 million** with revenue of approximately $69.5 million, a 7.8% increase year-over-year, reversing the loss from the first quarter[48](index=48&type=chunk) [Overview](index=19&type=section&id=%E6%A6%82%E8%A6%BD) Frontage operates as a global CRO with 25 sites, offering comprehensive R&D services and showing a strong financial rebound in the second quarter - In May 2025, the company launched a new 46,300 sq. ft. CRDMO facility in Exton, Pennsylvania, enhancing its CMC product development and manufacturing service capabilities[46](index=46&type=chunk) - Frontage operates a total of twenty-five (25) sites globally, with its headquarters in Exton, Pennsylvania, and operations across North America, China, and Europe[47](index=47&type=chunk) - The company recorded a net loss of approximately **$0.9 million in Q1 2025**, while Q2 saw a net profit of approximately **$3.8 million** on revenue of approximately $69.5 million, a 7.8% increase year-over-year[48](index=48&type=chunk) [Enhancing Capabilities and Expertise](index=20&type=section&id=%E6%8F%90%E5%8D%87%E8%83%BD%E5%8A%9B%E5%8F%8A%E5%B0%88%E9%95%B7) The company continues to enhance its service capabilities in North America, Europe, and China through new facilities and technology platforms - The North America and Europe market remains the leader in the CRO market, and Frontage maintains its market recognition by providing comprehensive, integrated "one-stop" solutions[49](index=49&type=chunk) - China's biopharmaceutical R&D industry is advancing amidst evolving regulatory frameworks and dynamic market changes, with a significant acceleration in the internationalization of innovative drugs[54](index=54&type=chunk) - The company has passed inspections by regulatory agencies such as the FDA, DEA, and NMPA in both North America & Europe and China, and has obtained ISO/IEC information security management system certification, strengthening quality and regulatory compliance[53](index=53&type=chunk)[56](index=56&type=chunk) [North America and Europe](index=20&type=section&id=%E5%8C%97%E7%BE%8E%E5%8F%8A%E6%AD%90%E6%B4%B2) In North America and Europe, the new CRDMO facility in Exton, Pennsylvania, has significantly boosted production and analytical capabilities - The new **46,300 sq. ft. CRDMO facility** in Exton, Pennsylvania, is equipped with nine GMP facilities (including high-potency and sterile facilities) to support the production of various dosage forms[49](index=49&type=chunk) - The pharmacology team has expanded its capabilities by validating new animal models to support therapeutic areas such as Alzheimer's disease, lupus, and psoriasis[51](index=51&type=chunk) - Global laboratory services have enhanced biomarker and diagnostic capabilities by integrating the Alamar NULISA and Fujirebio Lumipulse G1200 platforms[52](index=52&type=chunk) [China](index=22&type=section&id=%E4%B8%AD%E5%9C%8B) In China, the company provides end-to-end solutions from strategic locations and has enhanced its analytical and clinical service capabilities - The China business operates from strategic locations including Shanghai, Suzhou, Wuhan, and Zhengzhou, providing end-to-end solutions for small molecule drugs, biologics, and novel therapies[54](index=54&type=chunk) - The DMPK department has enhanced its analytical capabilities for mRNA and CAR-T cells to support the cell and gene therapy market[55](index=55&type=chunk) - The process scale-up center in Wuhan has **more than doubled its laboratory space**, adding a kilogram-scale facility and upgrading its purification capabilities[55](index=55&type=chunk) - Bioanalytical services have successfully passed multiple inspections by the NMPA and FDA, maintaining an excellent regulatory compliance record[56](index=56&type=chunk) [The Group's Facilities](index=23&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E8%A8%AD%E6%96%BD) As of June 30, 2025, the Group operates 25 facilities globally, with 14 in North America & Europe and 11 in China - As of June 30, 2025, the Group had fourteen (14) facilities in North America and Europe, including in the United States, Canada, and Italy[57](index=57&type=chunk) - As of June 30, 2025, the Group had eleven (11) facilities in China, including in Shanghai, Suzhou, Zhengzhou, and Wuhan[58](index=58&type=chunk)[60](index=60&type=chunk) [Financial Review](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The company's revenue slightly decreased, but improved gross profit and reduced operating expenses led to a turnaround from net loss to net profit - **Q2 2025 revenue was approximately $69.5 million**, a 7.8% increase from Q2 2024, reversing the sales weakness of the first quarter[58](index=58&type=chunk) - Revenue from North America & Europe increased by **18.1%** in the second quarter, while China business revenue increased by **34.7%** (excluding currency translation effects)[59](index=59&type=chunk) - For the six months ended June 30, 2025, net profit was approximately **$2.9 million**, compared to a net loss of approximately $0.3 million in the prior year period, with a net profit margin of 2.3%[71](index=71&type=chunk) - **Adjusted net profit increased by 26.2% to $7.7 million**, with an adjusted net profit margin of 6.1%[73](index=73&type=chunk) - **EBITDA increased by 13.9% to $27.0 million**, with an EBITDA margin of 21.4%[74](index=74&type=chunk) [Revenue](index=24&type=section&id=%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, total revenue was $126.6 million, a 1.5% decrease year-over-year, with a significant rebound in the second quarter Revenue by Service Line | Revenue Source | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Laboratory testing | 66,876 | 66,255 | 0.9% | | Drug development | 41,732 | 42,797 | (2.5)% | | Drug discovery | 13,180 | 15,820 | (16.7)% | | Medical product development | 4,790 | 3,603 | 33.0% | | **Total** | **126,578** | **128,475** | **(1.5)%** | - **Q2 2025 revenue was approximately $69.5 million**, an increase of 7.8% compared to Q2 2024[58](index=58&type=chunk) - Revenue from North America & Europe increased by **18.1%** in the second quarter, while China business revenue (excluding currency translation effects) increased by **34.7%**[59](index=59&type=chunk) [Cost of Services](index=25&type=section&id=%E6%9C%8D%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, cost of services decreased by 2.5% to $91.3 million due to lower labor costs and improved efficiency Cost of Services | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of services | 91,267 | 93,633 | (2.5)% | - The decrease in cost of services was primarily due to lower labor costs, cost savings, and improved capacity utilization[63](index=63&type=chunk) [Gross Profit and Gross Profit Margin](index=26&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) For the six months ended June 30, 2025, gross profit increased to $35.3 million, with the gross profit margin improving to 27.9% Gross Profit and Margin | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 35,311 | 34,842 | 1.4% | | Gross profit margin | 27.9% | 27.1% | 0.8 ppt | - The gross profit margin for North America & Europe increased from **29.4% to 30.4%**, mainly due to cost reductions from improved capacity utilization[65](index=65&type=chunk) [Selling and Marketing Expenses](index=26&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, selling and marketing expenses decreased by 8.5% to $4.3 million due to efficiency improvements Selling and Marketing Expenses | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and marketing expenses | 4,283 | 4,661 | (8.5)% | [Administrative Expenses](index=26&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, administrative expenses decreased by 15.1% to $20.8 million, driven by lower labor costs Administrative Expenses | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 20,824 | 24,507 | (15.1)% | - The decrease in administrative expenses was primarily due to lower labor costs and improved efficiency[67](index=67&type=chunk) [Research and Development Expenses](index=26&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, R&D expenses decreased by 21.4% to $2.2 million due to cost-saving measures R&D Expenses | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | R&D expenses | 2,173 | 2,772 | (21.4)% | - R&D activities are primarily focused on developing technologies and methods to enhance services and improve service quality and efficiency[68](index=68&type=chunk) [Finance Costs](index=27&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs decreased by 2.3% to $4.2 million due to repayment of bank borrowings Finance Costs | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 4,215 | 4,295 | (2.3)% | - The decrease in finance costs was primarily due to the repayment of bank borrowings during the reporting period[69](index=69&type=chunk) [Income Tax Expense](index=27&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense increased to $2.2 million, primarily due to higher pre-tax income Income Tax Expense | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 2,184 | 697 | 213.3% | - The increase in income tax expense was primarily due to higher pre-tax income[70](index=70&type=chunk) [Net Profit/Loss and Net Profit/Loss Margin](index=27&type=section&id=%E7%B4%94%E5%88%A9%EF%B9%95%E6%B7%A8%E8%99%A7%E6%90%8D%E5%8F%8A%E7%B4%94%E5%88%A9%E7%8E%87%EF%B9%95%E6%B7%A8%E8%99%A7%E6%90%8D%E7%8E%87) The company achieved a net profit of $2.9 million, a turnaround from a net loss in the prior year period, driven by cost-saving measures Net Profit/Loss | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Net profit/(loss) | 2,923 | (300) | | Net profit/(loss) margin | 2.3% | (0.2%) | - The increase in net profit and net profit margin was primarily due to the implementation of cost-saving and efficiency-enhancing measures[71](index=71&type=chunk) - **Net profit for Q2 2025 was approximately $3.8 million**, a significant improvement from the net loss of approximately $0.9 million in Q1[71](index=71&type=chunk) [Adjusted Net Profit](index=27&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4%E7%B4%94%E5%88%A9) For the six months ended June 30, 2025, adjusted net profit increased by 26.2% to $7.7 million, with a notable improvement in the second quarter Adjusted Net Profit | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Adjusted net profit | 7,738 | 6,147 | 26.2% | | Adjusted net profit margin | 6.1% | 4.8% | 1.3 ppt | - **Adjusted net profit for Q2 2025 was approximately $6.1 million**, a significant improvement from approximately $1.6 million in Q1[73](index=73&type=chunk) [Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)](index=28&type=section&id=%E7%A8%85%E6%81%AF%E6%8A%98%E8%88%8A%E5%8F%8A%E6%94%A4%E9%8A%B7%E5%89%8D%E5%88%A9%E6%BD%A4) For the six months ended June 30, 2025, EBITDA increased by 13.9% to $27.0 million, with the EBITDA margin rising to 21.4% EBITDA | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | EBITDA | 27,000 (est.) | 23,700 (est.) | 13.9% | | EBITDA margin | 21.4% | 18.4% | 3.0 ppt | [Adjusted EBITDA](index=28&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4%E7%A8%85%E6%81%AF%E6%8A%98%E8%88%8A%E5%8F%8A%E6%94%A4%E9%8A%B7%E5%89%8D%E5%88%A9%E6%BD%A4) For the six months ended June 30, 2025, adjusted EBITDA increased by 8.9% to $28.1 million, with the margin reaching 22.2% Adjusted EBITDA | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | 28,100 (est.) | 25,800 (est.) | 8.9% | | Adjusted EBITDA margin | 22.2% | 20.1% | 2.1 ppt | [Basic and Diluted Earnings/Loss Per Share](index=28&type=section&id=%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E5%8F%8A%E6%94%A4%E8%96%84%E7%9B%88%E5%88%A9%EF%B9%95%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, basic and diluted EPS was $0.0014, while adjusted basic and diluted EPS grew by 22.6% Earnings Per Share | Indicator | 2025 (USD) | 2024 (USD) | Change (%) | | :--- | :--- | :--- | :--- | | Basic earnings/(loss) per share | 0.0014 | (0.0001) | N/A | | Diluted earnings/(loss) per share | 0.0014 | (0.0001) | N/A | | Adjusted basic earnings per share | 0.0038 | 0.0031 | 22.6% | | Adjusted diluted earnings per share | 0.0038 | 0.0031 | 22.6% | [Right-of-Use Assets](index=29&type=section&id=%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) As of June 30, 2025, right-of-use assets were $51.6 million, a 5.0% decrease from year-end 2024 due to depreciation Right-of-Use Assets | Indicator | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Right-of-use assets | 51,600 (est.) | 54,300 (est.) | (5.0)% | [Intangible Assets](index=29&type=section&id=%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) As of June 30, 2025, intangible assets were $26.6 million, an 11.3% decrease from year-end 2024 due to amortization Intangible Assets | Indicator | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Intangible assets | 26,600 (est.) | 30,000 (est.) | (11.3)% | [Trade and Other Receivables and Prepayments](index=29&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade and other receivables and prepayments increased by 6.8% to $73.8 million, reflecting normal business fluctuations Trade and Other Receivables and Prepayments | Indicator | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and other receivables and prepayments | 73,800 (est.) | 69,100 (est.) | 6.8% | [Unbilled Revenue](index=29&type=section&id=%E6%9C%AA%E9%96%8B%E7%A5%A8%E6%94%B6%E5%85%A5) As of June 30, 2025, unbilled revenue increased by 11.1% to $21.0 million, reflecting normal business fluctuations Unbilled Revenue | Indicator | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Unbilled revenue | 21,000 (est.) | 18,900 (est.) | 11.1% | [Trade and Other Payables](index=29&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade and other payables increased by 9.3% to $21.1 million, mainly for expanding laboratory services Trade and Other Payables | Indicator | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and other payables | 21,100 (est.) | 19,300 (est.) | 9.3% | - The increase was primarily due to higher payments for plant and equipment to expand laboratory services[82](index=82&type=chunk) - Advances from customers recorded a **6.3% decrease**, as they were converted into revenue during the reporting period[83](index=83&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the company's cash balance decreased due to bank loan repayments, while net cash from operating activities increased significantly Cash Flow Summary | Indicator | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 18,764 | 4,632 | | Net cash used in investing activities | (3,551) | (14,855) | | Net cash (used in)/from financing activities | (25,200) | 840 | | Net decrease in cash and cash equivalents | (9,987) | (9,383) | | Cash and cash equivalents at end of period | 33,662 | 42,998 | - As of June 30, 2025, total cash and bank balances were approximately **$33.7 million**, a decrease from $44.1 million as of December 31, 2024, mainly due to the repayment of bank borrowings[84](index=84&type=chunk) - Capital expenditure for the six months ended June 30, 2025, was approximately **$3.7 million**, a decrease of 77.4% from the prior year period[85](index=85&type=chunk) [Indebtedness](index=30&type=section&id=%E5%82%B5%E5%8B%99) As of June 30, 2025, total bank borrowings decreased by 17.8% to $78.6 million, while lease liabilities slightly decreased - As of June 30, 2025, total bank borrowings were **$78.6 million**, a decrease from $95.7 million as of December 31, 2024[86](index=86&type=chunk) - The effective interest rates on bank borrowings ranged from **2.60% to 6.45%**[86](index=86&type=chunk) - As of June 30, 2025, lease liabilities were approximately **$58.2 million**, a slight decrease from $58.7 million as of December 31, 2024[87](index=87&type=chunk) [Contingent Liabilities and Guarantees](index=31&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5%E5%8F%8A%E6%93%94%E4%BF%9D) As of June 30, 2025, the Group did not have any material contingent liabilities or guarantees - As of June 30, 2025, the Group did not have any material contingent liabilities or guarantees[88](index=88&type=chunk) [Foreign Exchange Risk](index=31&type=section&id=%E8%B2%A8%E5%B9%A3%E9%A2%A8%E9%9A%AA) The Group is exposed to currency risks from USD, RMB, CAD, and EUR, which are managed through close monitoring rather than derivatives - The Group is exposed to currency risks in USD, RMB, CAD, and EUR, with Chinese operating subsidiaries primarily exposed to USD and EUR foreign currency risk[89](index=89&type=chunk) - The Group has not used derivative instruments to hedge its currency risk but manages it through close monitoring and minimizing net foreign currency exposure[89](index=89&type=chunk) [Gearing Ratio](index=31&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the gearing ratio decreased to 30.2% from 33.0% at year-end 2024, mainly due to repayment of bank borrowings Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | Change (ppt) | | :--- | :--- | :--- | :--- | | Gearing ratio | 30.2% | 33.0% | (2.8) | - The decrease in the gearing ratio was primarily due to the repayment of bank borrowings[90](index=90&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 1,540 employees, with 84% holding a bachelor's degree or higher, and utilizes share incentive plans to retain talent - As of June 30, 2025, the Group had **1,540 employees**, with 835 in North America & Europe and 705 in China[91](index=91&type=chunk) - Approximately **84% of employees hold a bachelor's degree or higher**, with 521 employees holding advanced degrees[91](index=91&type=chunk) - For the six months ended June 30, 2025, staff costs (excluding retirement benefits and share-based compensation) were approximately **$52.9 million**, a decrease from the prior year period[91](index=91&type=chunk) - The company has a Pre-IPO Share Incentive Plan, a 2018 Share Incentive Plan, and a 2021 Share Award Scheme[91](index=91&type=chunk) [Events After the Reporting Period](index=32&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The Board is not aware of any material events affecting the Group that have occurred since June 30, 2025 - The Board is not aware of any material events affecting the Group that have occurred after June 30, 2025, and up to the date of this announcement[93](index=93&type=chunk) [Outlook](index=32&type=section&id=%E5%89%8D%E6%99%AF) The global CRO market is expected to grow, and Frontage is well-positioned to capture opportunities through its comprehensive solutions and strategic investments - The global CRO services market is projected to grow from **$92.27 billion in 2025 to $175.53 billion by 2032**[94](index=94&type=chunk) - Frontage is strategically focused on expanding capacity, building specialized teams, and investing in digital transformation initiatives to optimize workflows, enhance quality control, and improve operational efficiency[94](index=94&type=chunk) - The company is committed to achieving strategic growth and technological innovation through continuous facility development, service scope expansion, and strengthening global partnerships[94](index=94&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=32&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%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) The company did not conduct any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - For the six months ended June 30, 2025, the Company did not have any material acquisitions or disposals of subsidiaries, associates, and joint ventures[95](index=95&type=chunk) [Other Corporate Information](index=33&type=section&id=%E5%85%B6%E4%BB%96%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) [Dividends](index=33&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%B7%B2%E8%AD%B0%E6%B1%BA%E4%B8%8D%E5%AE%A3%E6%B4%BE%E6%88%AA%E8%87%B32025%E5%B9%B46%E6%9C%8830%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%E7%9A%84%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[97](index=97&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company’s listed securities[98](index=98&type=chunk) [Model Code for Securities Transactions by Directors](index=33&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) All directors have complied with the required standards of the Model Code for securities transactions during the reporting period - For the six months ended June 30, 2025, all Directors have complied with the required standards set out in the Model Code[99](index=99&type=chunk) [Corporate Governance Code](index=33&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company has complied with the principles and code provisions of the Corporate Governance Code during the reporting period - For the six months ended June 30, 2025, the Company has complied with the principles and code provisions set out in the Corporate Governance Code[100](index=100&type=chunk) [Review of Interim Results by the Audit and Risk Management Committee](index=33&type=section&id=%E5%AF%A9%E6%A0%B8%E5%8F%8A%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Audit and Risk Management Committee has reviewed the Group's interim results and confirmed their compliance with applicable standards - The Audit and Risk Management Committee has reviewed the Group’s interim results announcement and interim report and is satisfied that they are prepared in accordance with applicable accounting standards and fairly reflect the financial position and results[101](index=101&type=chunk) [Publication of 2025 Interim Results Announcement and 2025 Interim Report](index=33&type=section&id=%E5%85%AC%E4%BD%882025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim results announcement is available on the HKEX and company websites, with the interim report to follow - This interim results announcement is published on the websites of the HKEX (www.hkexnews.hk) and the Company (www.frontagelab.com)[102](index=102&type=chunk) [Definitions](index=34&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used throughout the report - This section provides definitions for key terms and abbreviations used in the report to aid reader comprehension[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[108](index=108&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 XIANGXING INTERNATIONAL HOLDING LIMITED 1732 截至二零二五年六月三十日止六個月之中期業績公告 象興國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附屬 公司截至二零二五年六月三十日止六個月期間之未經審核簡明業績。本公告載有本公司 二零二五年中期報告全文，並符合香港聯合交易所有限公司（「聯交所」）證券上市規則中 有關中期業績初步公告附載資料之相關規定。本公司之二零二五年中期報告將於二零二 五年九月四日分別在聯交所網站www.hkexnews.hk及本公司網站www.xxlt.com.cn可供閱 覽，而本公司之二零二五年中期報告之印刷版本將於適當時候按其接收本公司的公司通 訊之選擇寄發予本公司股東。 承董事會命 象興國際控股有限公司 主席 程友國 香港，二零二五年八月二十八日 於本公告日期，執行董事為程友國先生及邱長武先生；獨立非執行 ...

[Overview of Supplemental Announcement](index=1&type=section&id=Overview%20of%20Supplemental%20Announcement) This announcement supplements annual reports from 2017-2024, disclosing remuneration details for former and current CEOs, Mr. Lin Ming and Mr. Zhao Yufeng [Purpose and Scope of Announcement](index=1&type=section&id=Purpose%20and%20Scope%20of%20Announcement) This announcement supplements 2017-2024 annual reports, disclosing remuneration for former and current CEOs per HKEX Listing Rules Appendix D2 paragraph 24.5 - This announcement supplements **New Focus Auto Tech Holdings Limited's 2017-2024 annual reports**, primarily disclosing **remuneration information** for **former CEO Mr. Lin Ming** and **current CEO Mr. Zhao Yufeng**[3](index=3&type=chunk)[7](index=7&type=chunk) - Disclosure is based on **paragraph 24.5 of Appendix D2** to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[3](index=3&type=chunk) [Disclosure of Directors' and Senior Management's Remuneration](index=1&type=section&id=Disclosure%20of%20Directors'%20and%20Senior%20Management's%20Remuneration) This section details the annual remuneration of former CEO Mr. Lin Ming and current CEO Mr. Zhao Yufeng from 2017 to 2024 [Remuneration of Former CEO Mr. Lin Ming](index=1&type=section&id=Remuneration%20of%20Former%20CEO%20Mr.%20Lin%20Ming) Mr. Lin Ming served as CEO from 2017-2019, with total annual remuneration ranging from **RMB 459 thousand** to **RMB 1,183 thousand** - Mr. Lin Ming was appointed CEO on **September 15, 2017**, and resigned on **May 31, 2019**[10](index=10&type=chunk) Former CEO Mr. Lin Ming's Annual Remuneration (RMB thousand) | Year | Salaries and Other Allowances (RMB thousand) | Discretionary Bonus (RMB thousand) | Retirement Scheme Contributions (RMB thousand) | Share-based Payments (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | 2017 | 887 | – | 54 | – | 941 | | 2018 | 1,104 | – | 79 | – | 1,183 | | 2019 | 424 | – | 35 | – | 459 | - Mr. Lin Ming's remuneration for the period from **September 15 to December 31, 2017**, was approximately **RMB 338 thousand**, including **RMB 313 thousand** in salaries and other allowances and **RMB 25 thousand** in retirement scheme contributions[10](index=10&type=chunk) [Remuneration of CEO Mr. Zhao Yufeng](index=2&type=section&id=Remuneration%20of%20CEO%20Mr.%20Zhao%20Yufeng) Mr. Zhao Yufeng has served as CEO since **August 6, 2020**, with annual remuneration from **RMB 698 thousand** to **RMB 1,809 thousand** - Mr. Zhao Yufeng was appointed CEO effective **August 6, 2020**[7](index=7&type=chunk) CEO Mr. Zhao Yufeng's Annual Remuneration (RMB thousand) | Year | Salaries and Other Allowances (RMB thousand) | Discretionary Bonus (RMB thousand) | Retirement Scheme Contributions (RMB thousand) | Share-based Payments (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | 2020 | 684 | – | 14 | – | 698 | | 2021 | 1,245 | – | 96 | – | 1,341 | | 2022 | 1,703 | – | 106 | – | 1,809 | | 2023 | 1,506 | – | 113 | – | 1,619 | | 2024 | 1,571 | – | 113 | – | 1,684 | - Mr. Zhao Yufeng's total annual remuneration showed an upward trend from **2020 to 2022**, increasing from **RMB 698 thousand** to **RMB 1,809 thousand**, followed by a slight decrease in **2023** and a recovery in **2024**[7](index=7&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section provides details on the company's board composition and the official date of this supplemental announcement [Board Composition](index=2&type=section&id=Board%20Composition) As of **August 28, 2025**, the board includes one executive director and three independent non-executive directors - As of **August 28, 2025**, the board members include Executive Director Tong Fei, and Independent Non-executive Directors Li Qingwen, Zhang Kaizhi, and Luo Baiyun[9](index=9&type=chunk) [Announcement Date](index=2&type=section&id=Announcement%20Date) This supplemental announcement was officially released on **August 28, 2025** - The release date of this supplemental announcement is **August 28, 2025**[9](index=9&type=chunk)

Interim Results Announcement This report provides a comprehensive overview of the company's unaudited interim financial results, management discussion, and other relevant information for the period. [Corporate Information](index=1&type=section&id=Corporate%20Information) This section outlines the company's basic information, GEM listing characteristics, and directors' responsibility for the announcement's accuracy and completeness. - The company, SV Vision Limited (stock code 8429), is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange[2](index=2&type=chunk) - The GEM market, targeting small and medium-sized companies, carries **higher investment risks** and potential for significant market volatility, with no guarantee of high liquidity[3](index=3&type=chunk) - Directors jointly and severally assume full responsibility for the announcement's content, confirming its accuracy, completeness, and absence of misleading or fraudulent elements[4](index=4&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, detailing the company's financial performance and position. [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement provides a summary of the company's revenues, expenses, and overall profit or loss for the reporting period. | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 69,271 | 66,442 | 2,829 | 4.3% | | Other income and gains | 35,682 | 30,104 | 5,578 | 18.5% | | Outsourced project costs | (89,165) | (83,428) | (5,737) | 6.9% | | Loss before income tax | (922) | (6,715) | 5,793 | -86.3% | | Loss for the period | (922) | (6,770) | 5,848 | -86.4% | | Basic and diluted loss per share attributable to owners of the Company (HK cents) | (0.18) | (1.39) | 1.21 | -87.1% | [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the company's assets, liabilities, and equity at a specific point in time, reflecting its financial health. | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 37,994 | 39,626 | (1,632) | -4.1% | | Current assets | 38,078 | 27,744 | 10,334 | 37.3% | | Current liabilities | 23,215 | 23,788 | (573) | -2.4% | | Net current assets | 14,863 | 3,956 | 10,907 | 275.7% | | Net assets | 52,857 | 43,267 | 9,590 | 22.2% | | Total equity attributable to owners of the Company | 56,410 | 46,188 | 10,222 | 22.1% | [Unaudited Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement details the cash inflows and outflows from operating, investing, and financing activities over the reporting period. | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net cash generated from (used in) operating activities | 318 | (5,525) | 5,843 | | Net cash generated from (used in) investing activities | 170 | (166) | 336 | | Net cash generated from (used in) financing activities | 9,570 | (1,361) | 10,931 | | Increase (decrease) in cash and cash equivalents | 10,058 | (7,052) | 17,110 | | Cash and cash equivalents at end of period | 21,707 | 13,570 | 8,137 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement illustrates the changes in the company's equity components over the reporting period, including profit, other comprehensive income, and capital transactions. - As of June 30, 2025, total equity attributable to owners of the Company increased to **HKD 56,410 thousand** from HKD 46,188 thousand on January 1, 2025, mainly due to a **HKD 11,161 thousand** increase in capital reserve from a new subsidiary[11](index=11&type=chunk) - Total comprehensive loss for the period significantly narrowed from **(HKD 6,677) thousand in 2024** to **(HKD 1,009) thousand in 2025**[11](index=11&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, offering context and explanations for general information, preparation basis, revenue, expenses, tax policies, and related party transactions. [1. General Information](index=8&type=section&id=1.%20General%20Information) This section provides fundamental details about the company's incorporation and primary business activities. - The Company was incorporated in the Cayman Islands on January 20, 2017, and listed on the GEM of the Stock Exchange on December 8, 2017[12](index=12&type=chunk) - The Group's principal activities include providing marketing production services, content media, and experiential services[13](index=13&type=chunk) [2. Basis of Preparation and Presentation](index=8&type=section&id=2.%20Basis%20of%20Preparation%20and%20Presentation) This section outlines the accounting standards and principles used in preparing the financial statements. - The financial statements are prepared in accordance with Chapter 18 of the GEM Listing Rules and HKAS 34 "Interim Financial Reporting"[14](index=14&type=chunk) - Accounting policies remain consistent with the previous year, with no significant changes resulting from the adoption of new or revised HKFRSs[14](index=14&type=chunk) - The financial statements are prepared on a historical cost basis, use HKD as the functional currency, are unaudited, but have been reviewed by the audit committee[15](index=15&type=chunk) [3. Revenue and Segment Information](index=9&type=section&id=3.%20Revenue%20and%20Segment%20Information) This section details the company's revenue streams and provides a breakdown of its operating segments and geographical contributions. - The Group operates as a single segment, encompassing marketing production and content media and experiential services[16](index=16&type=chunk) Revenue by Service Category | Service Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Marketing Production | 13,532 | 17,397 | | Content Media and Experiential Services | 55,739 | 49,045 | | Total | 69,271 | 66,442 | - Principal operations are in Hong Kong, with non-current assets primarily located in the **US (HKD 34,559 thousand)** and **Hong Kong (HKD 3,310 thousand)**[18](index=18&type=chunk) - Revenue by customer geographical location shows **Hong Kong SAR contributing HKD 67,405 thousand** and **Mainland China HKD 1,860 thousand**[19](index=19&type=chunk) - In the first half of 2025, no single customer contributed over **10% of total revenue**, unlike the same period in 2024 where customers A, B, and C each exceeded this threshold[20](index=20&type=chunk) [4. Other Income and Gains](index=10&type=section&id=4.%20Other%20Income%20and%20Gains) This section details the various non-operating income and gains recognized by the company during the period. Other Income and Gains Breakdown | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 180 | 41 | | Government grants and subsidies | 35,000 | 30,000 | | Miscellaneous income | 95 | 63 | | Exchange gains | 407 | — | | Total | 35,682 | 30,104 | [5. Loss Before Income Tax](index=11&type=section&id=5.%20Loss%20Before%20Income%20Tax) This section details the company's pre-tax loss and the factors influencing it, including employee benefits and tax provisions. - Loss before income tax significantly narrowed to **(HKD 922) thousand** from **(HKD 6,715) thousand** in the prior year period[5](index=5&type=chunk) - Employee benefit expenses decreased to **HKD 7,102 thousand** (2024: HKD 8,996 thousand), mainly due to reduced salaries, allowances, and benefits in kind[22](index=22&type=chunk) - No provision was made for Hong Kong profits tax during the period due to the absence of assessable profits or offset by tax losses[23](index=23&type=chunk) - Chinese subsidiaries did not generate assessable profits, resulting in no corporate income tax provision and the application of small and micro-enterprise income tax preferential policies[24](index=24&type=chunk) - Temporary withholding tax differences related to undistributed profits of Chinese subsidiaries amounted to approximately **HKD 1,239 thousand**, but no deferred tax liability was recognized due to the company's control over dividend policy[25](index=25&type=chunk) [7. Dividends](index=12&type=section&id=7.%20Dividends) This section states the board's decision regarding dividend payments for the reporting period. - For the six months ended June 30, 2025, the Board did not recommend the payment of any dividend[26](index=26&type=chunk) [8. Loss Per Share](index=13&type=section&id=8.%20Loss%20Per%20Share) This section presents the basic and diluted loss per share for the reporting period. Loss Per Share | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted loss per share | (0.18) | (1.39) | - Diluted loss per share is equal to basic loss per share, as there were no potential dilutive ordinary shares during the period[27](index=27&type=chunk) [9. Property, Plant and Equipment](index=13&type=section&id=9.%20Property%2C%20Plant%20and%20Equipment) This section details the company's capital expenditures on property, plant, and equipment and any related pledges. - Total cost of property, plant and equipment acquired during the period significantly decreased to approximately **HKD 10 thousand** from HKD 173 thousand in the prior year period[28](index=28&type=chunk) - As of June 30, 2025, approximately **HKD 34,198 thousand** of property, plant and equipment were pledged to secure banking facilities for a subsidiary[28](index=28&type=chunk) [10. Trade and Other Receivables, Deposits and Prepayments](index=14&type=section&id=10.%20Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) This section provides a breakdown of the company's trade and other receivables, deposits, and prepayments, along with credit terms. Trade and Other Receivables, Deposits and Prepayments | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables, net | 4,883 | 5,390 | | Other receivables | 7,759 | 697 | | Total current trade and other receivables, deposits and prepayments | 13,825 | 7,388 | - Customer credit terms typically range from **30 to 60 days** from the invoice date[29](index=29&type=chunk) - Trade receivables overdue for more than one month but less than three months decreased from **HKD 2,535 thousand** as of December 31, 2024, to **HKD 2,161 thousand** as of June 30, 2025[30](index=30&type=chunk) [11. Amounts Due to Non-Controlling Shareholders of a Subsidiary](index=14&type=section&id=11.%20Amounts%20Due%20to%20Non-Controlling%20Shareholders%20of%20a%20Subsidiary) This section describes the nature and terms of amounts owed to non-controlling shareholders of a subsidiary. - Amounts due to non-controlling shareholders of a subsidiary are non-trade, unsecured, interest-free, and repayable on demand[31](index=31&type=chunk) [12. Trade and Other Payables and Accrued Charges](index=15&type=section&id=12.%20Trade%20and%20Other%20Payables%20and%20Accrued%20Charges) This section details the company's trade and other payables, contract liabilities, and accrued charges, along with supplier credit terms. Trade and Other Payables and Accrued Charges | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade payables | 13,179 | 5,277 | | Contract liabilities | 1,120 | 2,873 | | Total (including contract liabilities) | 20,619 | 12,983 | - Supplier credit terms typically range from **30 to 90 days**[32](index=32&type=chunk) - Trade payables overdue for more than one month but less than three months significantly increased from **HKD 718 thousand** as of December 31, 2024, to **HKD 11,088 thousand** as of June 30, 2025[32](index=32&type=chunk) [13. Bank Loans](index=15&type=section&id=13.%20Bank%20Loans) This section outlines the details of the company's bank loan facilities, including amounts and terms. - In January 2025, the Group secured a new revolving loan facility of **US$2.5 million (approximately HKD 19.5 million)**, with approximately **US$0.05 million (approximately HKD 373 thousand)** already drawn[33](index=33&type=chunk) - The loan carries a variable interest rate of **0.75% above the US Prime Rate per annum** and is repayable on demand[33](index=33&type=chunk) [14. Share Capital](index=16&type=section&id=14.%20Share%20Capital) This section details the company's issued and fully paid share capital. - As of June 30, 2025, issued and fully paid share capital remained at **480,000,000 ordinary shares** of **HKD 0.01 each**, totaling **HKD 4,800 thousand**, consistent with December 31, 2024[34](index=34&type=chunk) [15. Related Party Transactions](index=16&type=section&id=15.%20Related%20Party%20Transactions) This section outlines transactions with related parties and compensation for key management personnel. Related Party Transactions | Transaction Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Short-term lease expenses paid to 4L 108 Leonard LLC | 559 | 563 | | Treasury management service fees paid to Mirousky Asia Limited | 360 | 120 | - Ms. Wu Chan Tak Che, an executive director, and her spouse are the beneficial owners of these related companies[35](index=35&type=chunk) - Total key management personnel compensation decreased to **HKD 2,319 thousand** from **HKD 2,538 thousand** in the prior year period[36](index=36&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section details the Group's business performance, financial position, and future outlook for the six months ended June 30, 2025, highlighting the impact of ComplexCon Hong Kong and strategic focus on experiential services. [Business Review and Outlook](index=18&type=section&id=Business%20Review%20and%20Outlook) This section reviews the company's operational highlights, market performance, and strategic direction for future growth. - ComplexCon Hong Kong 2025 was successfully held, with ticket sales growing by **37% year-on-year**, attracting over **35,000 participants**, of whom **55% were from outside Hong Kong**[38](index=38&type=chunk) - ComplexCon's success led to a **13.6% revenue growth** in content media and experiential services, reaching **HKD 55.7 million**[38](index=38&type=chunk) - Challenging Hong Kong economic conditions and changing consumption patterns resulted in a **22.2% decrease** in marketing production services revenue to **HKD 13.5 million**[39](index=39&type=chunk) - Overall revenue grew by **4.3% to HKD 69.3 million**, while loss significantly decreased by **86.4% to HKD 0.9 million**, primarily driven by ComplexCon's performance[39](index=39&type=chunk) - The Group plans to continue expanding its entertainment and experiential services to align with evolving consumer trends and market demand[39](index=39&type=chunk) [Financial Performance Review](index=19&type=section&id=Financial%20Performance%20Review) This section analyzes the Group's income and cost variations, attributing revenue growth to content media and experiential services and the narrowed loss to reduced operating expenses. [Revenue](index=19&type=section&id=Revenue) This section details the changes in revenue across different service categories. - Total revenue increased by **4.3% to HKD 69.3 million** (2024: HKD 66.4 million)[40](index=40&type=chunk) Revenue by Service Category | Service Category | 2025 (HKD thousands) | 2024 (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Marketing Production | 13,532 | 17,397 | -22.2% | | Content Media and Experiential Services | 55,739 | 49,045 | 13.6% | - Marketing production services revenue decreased due to fewer projects, while content media and experiential services revenue increased, primarily driven by ComplexCon Hong Kong 2025[41](index=41&type=chunk)[42](index=42&type=chunk) [Outsourced Project Costs](index=19&type=section&id=Outsourced%20Project%20Costs) This section explains the changes in costs associated with outsourced projects. - Outsourced project costs increased by **6.9% to HKD 89.2 million** (2024: HKD 83.4 million), primarily driven by content media and experiential services for ComplexCon Hong Kong 2025[43](index=43&type=chunk) [Materials and Consumables](index=20&type=section&id=Materials%20and%20Consumables) This section outlines the changes in expenses for materials and consumables. - Materials and consumables decreased by **31.2% to HKD 0.8 million** (2024: HKD 1.2 million), aligning with the reduction in marketing production services revenue[44](index=44&type=chunk) [Employee Benefit Expenses](index=20&type=section&id=Employee%20Benefit%20Expenses) This section details the changes in employee-related costs, including salaries and benefits. - Employee benefit expenses decreased by **21.1% to HKD 7.1 million** (2024: HKD 9.0 million), primarily due to a reduction in employee headcount and average salaries[45](index=45&type=chunk) [Rental Expenses](index=20&type=section&id=Rental%20Expenses) This section explains the changes in rental expenses, particularly for variable lease payments. - Rental expenses decreased by **8.4% to HKD 0.9 million** (2024: HKD 0.9 million), mainly due to reduced variable lease payments for printing machines in marketing production services[46](index=46&type=chunk) [Transportation Expenses](index=20&type=section&id=Transportation%20Expenses) This section details the changes in transportation costs. - Transportation expenses increased by **4.7% to HKD 1.5 million** (2024: HKD 1.4 million), primarily due to an increase in marketing production service projects requiring direct mail services[47](index=47&type=chunk) [Other Operating Expenses](index=20&type=section&id=Other%20Operating%20Expenses) This section outlines the changes in various other operating expenses. - Other operating expenses decreased by **13.5% to HKD 4.3 million** (2024: HKD 5.0 million), mainly due to a reduction in license and service fees[48](index=48&type=chunk) [Finance Costs](index=21&type=section&id=Finance%20Costs) This section details the changes in the company's finance costs. - Finance costs decreased by **60.8% to HKD 0.1 million** (2024: HKD 0.2 million), primarily due to reduced interest on other short-term borrowings and repayment of lease liabilities[49](index=49&type=chunk) [Loss for the Period](index=21&type=section&id=Loss%20for%20the%20Period) This section summarizes the company's net loss for the period and its primary drivers. - The Group's loss for the period significantly decreased to **HKD 0.9 million** (2024: HKD 6.8 million), primarily due to improved financial performance from ComplexCon Hong Kong 2025[50](index=50&type=chunk) [Financial Position and Liquidity](index=21&type=section&id=Financial%20Position%20and%20Liquidity) This section outlines the Group's liquidity, financial resources, gearing ratio, and capital structure, noting improved net current assets and equity, reduced gearing, and prudent treasury policies. [Liquidity, Financial Resources, Gearing Ratio and Capital Structure](index=21&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20Gearing%20Ratio%20and%20Capital%20Structure) This section provides an overview of the company's liquidity, financial resources, gearing, and capital structure. - Net current assets were approximately **HKD 14.9 million** (December 31, 2024: HKD 4.0 million), with cash and bank balances at approximately **HKD 21.7 million**[51](index=51&type=chunk) - The gearing ratio decreased to approximately **3.5%** (December 31, 2024: 6.6%), indicating reduced financial leverage[51](index=51&type=chunk) - Equity attributable to owners of the Company was approximately **HKD 56.4 million** (December 31, 2024: HKD 46.2 million), with no change in capital structure[51](index=51&type=chunk) [Foreign Exchange Risk and Treasury Policy](index=21&type=section&id=Foreign%20Exchange%20Risk%20and%20Treasury%20Policy) This section describes the company's exposure to foreign exchange risk and its treasury management strategies. - The Group faces multi-currency foreign exchange risk, primarily related to HKD, managed through regular net position reviews, with no derivative hedging instruments entered into during the period[52](index=52&type=chunk) - The Group adopts prudent financial management, maintains a robust liquidity position, and manages credit risk through credit assessments[52](index=52&type=chunk) [Pledge of Assets](index=22&type=section&id=Pledge%20of%20Assets) This section details the company's assets pledged as collateral for banking facilities. - As of June 30, 2025, property, plant and equipment with a total carrying amount of approximately **HKD 34.2 million** were pledged to secure banking facilities for a subsidiary[53](index=53&type=chunk) [Capital Commitments and Contingent Liabilities](index=22&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) This section confirms the absence of significant capital commitments or contingent liabilities. - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[54](index=54&type=chunk) [Operational and Strategic Updates](index=22&type=section&id=Operational%20and%20Strategic%20Updates) This section provides updates on the Group's employees, future investment plans, significant acquisitions, and post-reporting period events, including the establishment of a new subsidiary. [Employees and Remuneration](index=22&type=section&id=Employees%20and%20Remuneration) This section details the company's employee count, remuneration policies, and benefit plans. - As of June 30, 2025, the Group employed **32 full-time employees**, offering competitive remuneration and benefits, including a share option scheme and retirement benefit plans[55](index=55&type=chunk) [Future Plans for Material Investments and Capital Assets](index=22&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) This section states the company's plans regarding future material investments and capital assets. - The Group has no future plans for material investments and capital assets[56](index=56&type=chunk) [Material Investments, Significant Acquisitions and Disposals of Subsidiaries and Affiliated Companies](index=22&type=section&id=Material%20Investments%2C%20Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies) This section details significant investment activities, including the establishment of new subsidiaries. - On February 4, 2025, the Group established a new subsidiary, All At Once Limited, with **93.02% equity**, alongside two independent third-party investors, to expand experiential, entertainment, and e-commerce businesses and raise approximately **US$1.5 million** in working capital[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) This section confirms no transactions involving the company's listed securities during the reporting period. - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period and up to the announcement date, nor did they hold any treasury shares[58](index=58&type=chunk) [Events After Reporting Period](index=23&type=section&id=Events%20After%20Reporting%20Period) This section confirms the absence of significant events subsequent to the reporting period. - No significant events occurred for the Group after the reporting period[59](index=59&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section discloses directors' and major shareholders' interests, share option scheme details, corporate governance practices, board changes, and the audit committee's review of financial statements. [Disclosure of Interests of Directors and Chief Executive](index=23&type=section&id=Disclosure%20of%20Interests%20of%20Directors%20and%20Chief%20Executive) This section details the interests and short positions of directors and the chief executive in the company's shares and related securities. Directors' and Chief Executive's Interests | Nature of Interest | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | | Interest in controlled corporation | 283,920,000 | 59.15% | | Interest held jointly with other persons | 34,850,000 | 7.26% | | Spouse's interest | 5,280,000 | 1.10% | | Beneficial owner | 2,625,000 | 0.55% | - Ms. Wu Chan beneficially and wholly owns **283,920,000 shares** through Explorer Vantage Limited, representing **59.15%**[60](index=60&type=chunk) - Ms. Wu Chan also holds **100% beneficial ownership** or interest in controlled corporations in Explorer Vantage and Pipa Jin Printing Limited[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) [Disclosure of Interests of Substantial Shareholders and Other Persons](index=25&type=section&id=Disclosure%20of%20Interests%20of%20Substantial%20Shareholders%20and%20Other%20Persons) This section details the interests and short positions of substantial shareholders and other persons in the company's shares. Substantial Shareholders' and Other Persons' Interests | Name/Designation | Type of Interest | Number of Shares Held | Percentage of the Company's Shareholding | | :--- | :--- | :--- | :--- | | Explorer Vantage | Beneficial owner | 283,920,000 | 59.15% | | Mr. Wu Kin Pong | Spouse's interest | 286,545,000 | 59.70% | | Mirousky | Beneficial owner | 34,850,000 | 7.26% | | Mirousky Asia Limited | Interest in controlled corporation | 34,850,000 | 7.26% | | Ms. Chow Wai Ying | Beneficial owner | 35,950,000 | 7.49% | - Mr. Wu Kin Pong (Ms. Wu Chan's spouse) is deemed to have an interest in shares held by Ms. Wu Chan and also holds shares through Mirousky[66](index=66&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) This section provides details on the company's share option scheme, including its adoption date and available shares. - The share option scheme was adopted on November 16, 2017, but no share options have been granted since its adoption[67](index=67&type=chunk) - As of June 30, 2025, **48,000,000 shares** were available for grant under the share option scheme, representing **10% of the issued share capital**[67](index=67&type=chunk) [Rights to Acquire Shares or Debentures](index=26&type=section&id=Rights%20to%20Acquire%20Shares%20or%20Debentures) This section confirms that no rights to acquire shares or debentures were granted or exercised by directors or their associates. - During the reporting period and up to the announcement date, no rights to subscribe for shares or related shares of the Company and/or its associated corporations were granted to or exercised by directors, chief executive, or their close associates[68](index=68&type=chunk) [Directors' Interests in Competing Businesses](index=26&type=section&id=Directors%27%20Interests%20in%20Competing%20Businesses) This section confirms that directors have no interests in businesses competing with the Group. - During the reporting period and up to the announcement date, none of the directors, substantial shareholders, or their close associates held any interest in businesses directly or indirectly competing with the Group's operations[69](index=69&type=chunk) [Non-Competition Undertaking](index=26&type=section&id=Non-Competition%20Undertaking) This section describes the non-competition undertaking entered into by key parties to prevent competition with the company. - Explorer Vantage and Ms. Wu Chan entered into a non-competition undertaking on November 16, 2017, pledging not to compete with the Company and its subsidiaries, effective from the listing date[70](index=70&type=chunk) [Directors' Securities Transactions](index=27&type=section&id=Directors%27%20Securities%20Transactions) This section confirms directors' compliance with the standard code for securities transactions. - The Company adopted the Standard Code, and all directors confirmed compliance with it during the reporting period following inquiry[71](index=71&type=chunk) - The Company requires employees or subsidiary directors/employees with potential inside information to adhere to the Standard Code's trading restrictions[71](index=71&type=chunk) [Changes in Directors' Information](index=27&type=section&id=Changes%20in%20Directors%27%20Information) This section reports changes in the composition of the board of directors and their committee roles. - Mr. Man Ka Ho resigned as an independent non-executive director and from related committee positions, effective from the conclusion of the Annual General Meeting on **June 18, 2025**[73](index=73&type=chunk) - Mr. Cao Yu was appointed as an independent non-executive director, Chairman of the Nomination Committee, member of the Remuneration Committee, and member of the Audit Committee, effective from the conclusion of the Annual General Meeting[73](index=73&type=chunk) [Corporate Governance Practices](index=27&type=section&id=Corporate%20Governance%20Practices) This section outlines the company's commitment to high corporate governance standards and its adherence to relevant codes. - The Company is committed to maintaining high corporate governance standards, adopting the principles and code provisions of the Corporate Governance Code in Appendix C1 Part 2 of the GEM Listing Rules[72](index=72&type=chunk) - The Board has established an Audit Committee, a Nomination Committee, and a Remuneration Committee[72](index=72&type=chunk) - The Company deviates from Code Provision C.2.1 (separation of Chairman and CEO roles) as Ms. Wu Chan holds both positions; the Board believes this benefits business operations and management, with sufficient independent non-executive directors ensuring power balance[74](index=74&type=chunk) [Audit Committee and Review of Unaudited Condensed Consolidated Financial Statements](index=28&type=section&id=Audit%20Committee%20and%20Review%20of%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section describes the composition and responsibilities of the Audit Committee and its review of the financial statements. - The Audit Committee, chaired by Mr. Yip Tin Chee, comprises three independent non-executive directors, responsible for reviewing and overseeing financial reporting, internal controls, and risk management[75](index=75&type=chunk) - The Audit Committee reviewed the unaudited condensed consolidated financial statements, confirming compliance with applicable accounting standards, GEM Listing Rules, and other legal requirements, with adequate disclosures made[75](index=75&type=chunk)[76](index=76&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何部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。 （於開曼群島註冊成立的獲豁免有限公司） （股份代號：1873） 截至二零二五年六月三十日止六個月之 中期業績公告 維亞生物科技控股集團（「本公司」或「公 司」，連 同 其 附 屬 公 司 統 稱「本集團」、「集 團」 或「維 亞」）董 事（「董 事」）會（「董事會」）欣 然 宣 佈 本 集 團 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月（「報告期」）的 未 經 審 核 簡 明 綜 合 財 務 業 績。 財務概要 | | | 截至六月三十日止六個月 | | --- | --- | --- | | | 二零二五年 | 二零二四年 | | | 人民幣百萬元 | 人民幣百萬元 | | | 未經審核 | 未經審核 | | 收 益 | 831.9 | 981.8 | | 毛 利 | 339.4 | 339.1 | | 毛利率 | 40. ...