[Summary](index=1&type=section&id=Summary) The company reported a slight revenue decrease but a **41.76% increase in profit** attributable to parent company shareholders in H1 2025 2025 H1 Key Financial Data | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | Change (RMB) | Change Ratio | | :--- | :--- | :--- | :--- | :--- | | Revenue | 4,163,714,743.93 | 4,165,152,715.24 | -1,437,971.31 | -0.03% | | Profit attributable to equity holders of the parent company | 41,480,009.64 | 29,260,117.19 | 12,219,892.45 | 41.76% | | Basic earnings per share | 0.23 | 0.18 | 0.05 | 27.78% | | Interim cash dividend (per share) | 0.05 (tax inclusive) | None | N/A | N/A | [Interim Results (Unaudited)](index=2&type=section&id=Interim%20Results%20%28Unaudited%29) The Group's H1 2025 unaudited results show increased assets and equity, significant net profit growth, and decreased operating cash flow [Consolidated and Company Balance Sheet](index=3&type=section&id=Consolidated%20and%20Company%20Balance%20Sheet) As of June 30, 2025, total assets increased by **1.70%**, driven by cash and contract assets, while equity attributable to parent company shareholders grew by **6.98%** Consolidated Balance Sheet Key Data (As of June 30, 2025) | Indicator | June 30, 2025 (RMB) | Dec 31, 2024 (RMB) | Change (RMB) | Change Ratio | | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 5,285,214,208.63 | 5,196,726,047.16 | 88,488,161.47 | 1.70% | | Total Current Assets | 3,960,804,234.77 | 3,830,000,817.43 | 130,803,417.34 | 3.42% | | Total Non-current Assets | 1,324,409,973.87 | 1,366,725,229.73 | -42,315,255.86 | -3.10% | | **Total Liabilities** | 2,942,201,066.09 | 2,990,079,928.74 | -47,878,862.65 | -1.60% | | Total Current Liabilities | 2,834,725,498.16 | 2,880,016,920.99 | -45,291,422.83 | -1.57% | | Total Non-current Liabilities | 107,475,567.93 | 110,063,007.75 | -2,587,439.82 | -2.35% | | **Total Equity attributable to parent company shareholders** | 2,190,391,592.85 | 2,047,499,190.00 | 142,892,402.85 | 6.98% | | Minority Interests | 152,621,549.69 | 159,146,928.42 | -6,525,378.73 | -4.10% | | **Total Shareholders' (or Owners') Equity** | 2,343,013,142.54 | 2,206,646,118.42 | 136,367,024.12 | 6.18% | [Consolidated and Company Income Statement](index=5&type=section&id=Consolidated%20and%20Company%20Income%20Statement) For H1 2025, revenue slightly decreased by **0.03%**, but net profit attributable to parent company shareholders significantly increased by **41.76%** Consolidated Income Statement Key Data (For the 6 months ended June 30, 2025) | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | Change (RMB) | Change Ratio | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 4,163,714,743.93 | 4,165,152,715.24 | -1,437,971.31 | -0.03% | | Operating Costs | 3,932,988,741.91 | 3,974,282,672.99 | -41,293,931.08 | -1.04% | | Operating Profit | 90,001,166.52 | 42,630,898.06 | 47,370,268.46 | 111.12% | | Total Profit | 67,306,109.76 | 43,320,740.93 | 23,985,368.83 | 55.37% | | Net Profit | 43,476,775.16 | 31,219,294.40 | 12,257,480.76 | 39.26% | | Net Profit attributable to parent company shareholders | 41,480,009.64 | 29,260,117.19 | 12,219,892.45 | 41.76% | | Basic Earnings Per Share (RMB) | 0.23 | 0.18 | 0.05 | 27.78% | [Consolidated and Company Cash Flow Statement](index=6&type=section&id=Consolidated%20and%20Company%20Cash%20Flow%20Statement) For H1 2025, net cash from operating activities significantly decreased by **94.58%**, while net cash from financing activities turned positive Consolidated Cash Flow Statement Key Data (For the 6 months ended June 30, 2025) | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | Change (RMB) | Change Ratio | | :--- | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | 18,267,940.31 | 336,795,976.42 | -318,528,036.11 | -94.58% | | Net cash flow from investing activities | -34,415,768.20 | 70,054,444.84 | -104,470,213.04 | -149.12% | | Net cash flow from financing activities | 103,905,254.35 | -44,465,091.09 | 148,370,345.44 | 333.70% | | Net increase in cash and cash equivalents | 87,762,394.42 | 362,387,659.82 | -274,625,265.40 | -75.78% | | Cash and cash equivalents at end of period | 1,069,984,323.12 | 1,211,722,172.80 | -141,737,849.68 | -11.70% | [Consolidated Statement of Changes in Equity](index=7&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2025, total equity attributable to parent company shareholders increased by **RMB 142,892,402.85**, driven by increases in share capital and capital reserves Consolidated Statement of Changes in Equity (For the 6 months ended June 30, 2025) | Item | June 30, 2025 (RMB) | Dec 31, 2024 (RMB) | Change (RMB) | | :--- | :--- | :--- | :--- | | Share Capital | 202,064,000.00 | 162,064,000.00 | 40,000,000.00 | | Capital Reserve | 128,004,708.41 | 67,079,415.05 | 60,925,293.36 | | Retained Earnings | 1,737,356,403.09 | 1,695,876,393.45 | 41,480,009.64 | | Total Equity attributable to parent company shareholders | 2,190,391,592.85 | 2,047,499,190.00 | 142,892,402.85 | [Company Statement of Changes in Equity](index=9&type=section&id=Company%20Statement%20of%20Changes%20in%20Equity)

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) Star Properties' H1 2025 revenue decreased by 9.4% to RMB 284.2 million, while the overall gross profit margin increased by 0.7 percentage points to 52.3%, with profit attributable to owners decreasing by 2.5% to RMB 86.9 million, and an interim dividend of HK 5.0 cents per ordinary share declared [H1 2025 Performance Overview](index=1&type=section&id=H1%202025%20Performance%20Overview) For the six months ended June 30, 2025, Star Properties' revenue decreased by 9.4% to RMB 284.2 million, but the overall gross profit margin increased by 0.7 percentage points to 52.3%, with profit attributable to owners decreasing by 2.5% to RMB 86.9 million, and an interim dividend of HK 5.0 cents per ordinary share declared 2025 H1 Key Financial Data (RMB million) | Indicator | For the six months ended June 30, 2025 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | | Revenue | 284.2 | -9.4% | | Overall Gross Profit Margin | 52.3% | +0.7 percentage points | | Profit Attributable to Owners of the Company | 86.9 | -2.5% | | Interim Dividend (per ordinary share) | 5.0 HK cents | N/A | [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the Group's unaudited condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the unaudited condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, and 2024, reflecting key financial performance metrics Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 284,229 | 313,780 | | Cost of Services | (135,548) | (151,900) | | Gross Profit | 148,681 | 161,880 | | Other Income | 15,585 | 18,745 | | Other Losses | (1,131) | (802) | | Net Impairment Losses | (707) | (1,295) | | Selling Expenses | (6,676) | (14,688) | | Administrative Expenses | (26,346) | (31,752) | | Finance Costs | (18,451) | (18,144) | | Share of Results of a Joint Venture | – | (74) | | Profit Before Tax | 110,955 | 113,870 | | Income Tax Expense | (24,902) | (27,374) | | Profit and Total Comprehensive Income for the Period | 86,053 | 86,496 | | Profit Attributable to Owners of the Company | 86,896 | 89,100 | | Non-controlling Interests | (843) | (2,604) | | Basic Earnings Per Share (RMB cents) | 8.58 | 8.80 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section provides the unaudited condensed consolidated statement of financial position as of June 30, 2025, and December 31, 2024, detailing the Group's assets, liabilities, and equity structure Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property and Equipment | 778 | 1,152 | | Investment Properties | 783,532 | 780,445 | | Deferred Tax Assets | 50,014 | 44,205 | | **Current Assets** | | | | Short-term Bank Deposits | 870,808 | 655,905 | | Cash and Cash Equivalents | 497,609 | 710,599 | | Total Current Assets | 1,425,297 | 1,417,359 | | **Current Liabilities** | | | | Trade and Other Payables | 223,171 | 286,286 | | Lease Liabilities | 23,111 | 22,268 | | Dividends Payable | 76,793 | – | | Total Current Liabilities | 358,286 | 359,562 | | **Total Equity** | | | | Equity Attributable to Owners of the Company | 1,257,646 | 1,246,877 | | Non-controlling Interests | 7,964 | 8,807 | | Total Equity | 1,265,610 | 1,255,684 | | **Non-current Liabilities** | | | | Lease Liabilities | 653,117 | 647,151 | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, accounting policies, and specific financial statement items [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The financial information is prepared in accordance with Hong Kong Accounting Standard 34 and applicable disclosure requirements of the HKEX Listing Rules - Financial information is prepared in accordance with HKAS 34 and HKEX Listing Rules[7](index=7&type=chunk) [Principal Accounting Policies](index=5&type=section&id=Principal%20Accounting%20Policies) The financial information is prepared on a historical cost basis, with accounting policies consistent with the 2024 consolidated financial statements, and no significant impact from new HKFRS amendments - Financial information is prepared on a historical cost basis, with accounting policies consistent with 2024[8](index=8&type=chunk) - Application of HKFRS amendments in the current period has no significant impact on financial position or performance[9](index=9&type=chunk) [Revenue and Segment Information](index=6&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from commercial property operation services in Mainland China, categorized into entrusted management, brand and management output, and master lease services, operating as a single segment Revenue from Commercial Property Operation Services by Operation Model (RMB thousand) | Operation Model | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Entrusted Management Services | 185,706 | 209,691 | | Brand and Management Output Services | 34,439 | 43,458 | | Master Lease Services | 64,084 | 60,631 | | **Total** | **284,229** | **313,780** | Revenue from Commercial Property Operation Services by Service Type (RMB thousand) | Service Type | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Market Positioning, Design & Construction Consulting, and Tenant Sourcing Services | 20,985 | 29,180 | | Operation Management Services | 182,235 | 198,323 | | Value-added Services | 52,884 | 57,616 | | **Total (Revenue from Contracts with Customers)** | **256,104** | **285,119** | - The Group operates as a single operating segment, with all business and non-current assets located in Mainland China[13](index=13&type=chunk)[14](index=14&type=chunk) [Income Tax Expense](index=8&type=section&id=Income%20Tax%20Expense) Income tax expense for the six months ended June 30, 2025, was RMB 24.9 million, primarily comprising current and deferred tax Income Tax Expense (RMB thousand) | Tax Type | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | PRC Enterprise Income Tax, net | 29,268 | 38,532 | | Deferred Tax | (4,366) | (11,158) | | **Total** | **24,902** | **27,374** | [Profit for the Period](index=8&type=section&id=Profit%20for%20the%20Period) Profit for the period is calculated after deducting staff costs, depreciation, and direct operating expenses for investment properties, with total staff costs at RMB 89.7 million and investment property depreciation at RMB 23.1 million Components of Profit for the Period (RMB thousand) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Total Staff Costs | 89,719 | 99,022 | | Depreciation of Property and Equipment | 300 | 585 | | Depreciation of Investment Properties | 23,082 | 23,102 | | Gross Rental Income from Investment Properties | (28,125) | (28,661) | | Less: Direct Operating Expenses Arising from Investment Properties during the Period | 27,405 | 27,615 | [Dividends](index=9&type=section&id=Dividends) The Board declared an interim dividend of HK 5.0 cents per ordinary share for the six months ended June 30, 2025, with total dividend distribution recognized during the period amounting to RMB 77.1 million Dividend Distribution Recognized During the Period (RMB thousand) | Dividend Type | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Final dividend for 2024 of HK 8.3 cents per ordinary share | 77,108 | – | | Final dividend for 2023 of HK 13.0 cents per ordinary share | – | 120,066 | | **Total** | **77,108** | **120,066** | - The Board declared an interim dividend of **HK 5.0 cents per ordinary share** for the six months ended June 30, 2025[16](index=16&type=chunk) [Earnings Per Share](index=9&type=section&id=Earnings%20Per%20Share) Basic earnings per share attributable to owners of the Company was RMB 8.58 cents, calculated based on profit attributable to owners and the weighted average number of ordinary shares, with no diluted EPS presented due to absence of potential ordinary shares Basic Earnings Per Share Calculation Data | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB thousand) | 86,896 | 89,100 | | Weighted Average Number of Ordinary Shares (thousand shares) | 1,012,579 | 1,012,635 | - No diluted earnings per share is presented for the two interim periods as there are no outstanding potential ordinary shares[20](index=20&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 amounted to RMB 72.9 million, with trade receivables at RMB 26.0 million, and most trade receivables (net of credit loss provision) aged within 0-10 days Analysis of Trade and Other Receivables (RMB thousand) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables | 25,985 | 23,961 | | Other Receivables | 46,883 | 45,604 | | **Total** | **72,868** | **69,565** | Ageing Analysis of Trade Receivables (Net of Provision for Credit Losses) (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 10 days | 15,597 | 15,129 | | 11 to 30 days | 391 | 453 | | 31 to 60 days | 2,946 | 207 | | 61 to 90 days | 374 | 367 | | Over 90 days | 1,262 | 2,390 | | **Total** | **20,570** | **18,546** | [Trade and Other Payables](index=12&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were RMB 223.2 million, with trade payables at RMB 30.5 million, and most trade payables aged within 0-30 days Analysis of Trade and Other Payables (RMB thousand) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | 30,482 | 40,286 | | Other Payables | 192,689 | 246,000 | | **Total** | **223,171** | **286,286** | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 30,479 | 40,283 | | Over 90 days | 3 | 3 | | **Total** | **30,482** | **40,286** | [Share Capital](index=13&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 2,000,000,000 shares, with 1,014,516,000 shares issued and fully paid, and no share repurchases or cancellations during the period Share Capital Details | Indicator | Number of Shares | Share Capital (HK$ thousand) | Share Capital (RMB thousand) | | :--- | :--- | :--- | :--- | | Authorized Share Capital (par value HK$0.01 per share) | 2,000,000,000 | 20,000 | 16,755 | | Issued and Fully Paid Share Capital (as of June 30, 2025) | 1,014,516,000 | 10,145 | 8,487 | - Ordinary shares repurchased in December 2023 and January 2024 were cancelled in February 2024[23](index=23&type=chunk) [Company Profile and Business Model](index=14&type=section&id=Company%20Profile%20and%20Business%20Model) This section outlines Star Properties' position as a leading commercial property operation service provider in the Greater Bay Area and details its diverse business models [Company Profile](index=14&type=section&id=Company%20Profile) Star Properties is a leading commercial property operation service provider in the Greater Bay Area, managing 52 projects across 21 cities in China with a total contracted GFA of approximately 2.65 million sq.m., and holding recognized brands - As of June 30, 2025, the Group provides services to **52 commercial property projects** across **21 cities in China**, with a total contracted GFA of approximately **2.65 million sq.m**[24](index=24&type=chunk) - The Group owns well-recognized brand systems including "COCO Park", "COCO City", "iCO", and "The Third Space"[24](index=24&type=chunk) - In H1 2025, the Group received multiple industry honors, including "Top 10 Commercial Real Estate Operators in China 2025" from China Index Academy[25](index=25&type=chunk) [Business Model](index=15&type=section&id=Business%20Model) The Group provides commercial property operation services through entrusted management, brand and management output, and master lease service models, each differing in management involvement, customer base, and service offerings - The Group provides commercial property operation services through three operating models: entrusted management, brand and management output, and master lease services[26](index=26&type=chunk) [Entrusted Management Service Model](index=15&type=section&id=Entrusted%20Management%20Service%20Model) Under this model, the Group is fully entrusted by owners to manage commercial properties, deploying a complete management team to provide comprehensive services, aiming for optimal operational performance and revenue growth - The Group is fully entrusted by owners to manage commercial properties, deploying a complete management team[27](index=27&type=chunk) - Services include market positioning, design and construction consulting, tenant sourcing, operation management, and value-added services[27](index=27&type=chunk)[28](index=28&type=chunk) - This model grants the Group high autonomy, contributing to better operational performance and revenue growth[29](index=29&type=chunk) [Brand and Management Output Service Model](index=16&type=section&id=Brand%20and%20Management%20Output%20Service%20Model) As a professional manager, the Group deploys only a core management team, with owners bearing most personnel and operating costs, resulting in lower capital and human resource investment, higher gross profit margins, and facilitating rapid regional expansion - The Group only deploys a core management team for projects, with owners responsible for most project personnel and operating costs[30](index=30&type=chunk)[32](index=32&type=chunk) - Revenue sources include fixed fees for positioning, construction consulting, and tenant sourcing services, as well as a predetermined percentage or fixed fee for operation management services[31](index=31&type=chunk)[32](index=32&type=chunk) - This model requires less capital and human resource investment, generally yields higher gross profit margins, and facilitates rapid regional expansion[33](index=33&type=chunk) [Master Lease Service Model](index=17&type=section&id=Master%20Lease%20Service%20Model) The Group leases commercial properties from owners and subleases them to tenants, taking full responsibility for management and operational performance, potentially offering renovation services, a model that maximizes project revenue but carries higher risks and is adopted cautiously - The Group leases commercial properties from owners and subleases commercial spaces to tenants, taking full responsibility for management and operational performance[34](index=34&type=chunk) - Services include property leasing, operation management, and value-added services, with revenue primarily from rent and management fees[36](index=36&type=chunk) - This model can maximize project revenue but faces higher risks, thus adopted cautiously, primarily for projects with high growth potential[35](index=35&type=chunk) [Business Operations Review](index=18&type=section&id=Business%20Operations%20Review) This section reviews the Group's project portfolio, opened retail commercial properties, regional distribution, and average occupancy rates [Project Portfolio](index=18&type=section&id=Project%20Portfolio) As of June 30, 2025, the Group's total service projects numbered 52, with a total contracted GFA of approximately 2.65 million sq.m., noting a decrease in brand and management output service projects due to contract termination with Zhuhai Galaxy COCO Park Total Contracted GFA and Number of Properties by Operation Model | Operation Model | June 30, 2025 No. of Properties | June 30, 2025 GFA (thousand sq.m.) | December 31, 2024 No. of Properties | December 31, 2024 GFA (thousand sq.m.) | | :--- | :--- | :--- | :--- | :--- | | Entrusted Management Services | 12 | 886 | 12 | 886 | | Brand and Management Output Services | 33 | 1,345 | 34 | 1,408 | | Master Lease Services | 7 | 416 | 7 | 416 | | **Total** | **52** | **2,647** | **53** | **2,710** | - In H1 2025, the Group negotiated and terminated the contract with the owner of Zhuhai Galaxy COCO Park, leading to a reduction in brand and management output service projects[37](index=37&type=chunk) [Opened Retail Commercial Property Projects](index=19&type=section&id=Opened%20Retail%20Commercial%20Property%20Projects) As of June 30, 2025, the Group operated 27 opened retail commercial property projects, with a total opened GFA of approximately 1.65 million sq.m., located in various cities including Shenzhen, Changzhou, and Shanghai Overview of Selected Opened Retail Commercial Property Projects | No. | Commercial Property | Location | Opening Date | Operation Model | Owner | | :--- | :--- | :--- | :--- | :--- | :--- | | 1. | Shenzhen Futian Galaxy COCO Park (North District) | Shenzhen | Sep 2006 | Entrusted Management Services | Galaxy Holdings Group Co., Ltd. and its associates | | 4. | Shenzhen Longgang Galaxy COCO Park | Shenzhen | Sep 2012 | Entrusted Management Services | Galaxy Holdings Group Co., Ltd. and its associates | | 6. | Shenzhen Longhua Galaxy iCO | Shenzhen | Dec 2015 | Brand and Management Output Services | Independent third-party property developer | | 8. | Changzhou Wujin Hutang Galaxy COCO City | Changzhou | Aug 2016 | Master Lease Services | Galaxy Holdings Group Co., Ltd. and its associates | | 21. | Xiamen Galaxy COCO Park | Xiamen | May 2023 | Master Lease Services | Independent third-party property developer | | 27. | Shanghai Pudong Galaxy COCO Garden | Shanghai | May 2024 | Brand and Management Output Services | Galaxy Holdings Group Co., Ltd. and its associates | [Regional Distribution](index=21&type=section&id=Regional%20Distribution) As of June 30, 2025, the Group's business is primarily concentrated in the Greater Bay Area, contributing 74.9% of revenue and 56.7% of contracted GFA, with the Yangtze River Delta contributing 15.0% of revenue and 15.9% of contracted GFA Contracted GFA and Revenue by Geographical Location | Region | June 30, 2025 No. of Properties | June 30, 2025 Contracted GFA (thousand sq.m.) | June 30, 2025 Revenue (RMB thousand) | June 30, 2025 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Greater Bay Area | 32 | 1,500 | 212,938 | 74.9 | | －Shenzhen | 19 | 777 | 186,135 | 65.5 | | Yangtze River Delta | 9 | 422 | 42,499 | 15.0 | | Other Regions | 10 | 725 | 28,792 | 10.1 | | **Total** | **52** | **2,647** | **284,229** | **100.0** | [Average Occupancy Rate](index=22&type=section&id=Average%20Occupancy%20Rate) As of June 30, 2025, the average occupancy rate for the Group's operating retail commercial properties was 92.5%, a slight increase from 92.4% at December 31, 2024, with COCO Park achieving the highest rate at 93.9% Average Occupancy Rate of Operating Retail Commercial Properties | Product Type | June 30, 2025 (%) | December 31, 2024 (%) | | :--- | :--- | :--- | | COCO Park | 93.9 | 93.8 | | COCO City and iCO | 90.9 | 90.7 | | Others | 93.7 | 93.9 | | **Total** | **92.5** | **92.4** | [Future Outlook and Strategy](index=22&type=section&id=Future%20Outlook%20and%20Strategy) This section outlines the Group's strategic priorities and work plan for the second half of 2025, focusing on asset value, digital intelligence, cost awareness, and regional expansion [H2 2025 Work Plan](index=22&type=section&id=H2%202025%20Work%20Plan) In H2 2025, Star Properties will focus on "Cost-Benefit Year" and "Focused Strategy," emphasizing asset value enhancement, digital intelligence, cost awareness, and regional expansion - H2 2025 core work will focus on the "Cost-Benefit Year" theme, implementing a "Focused Strategy" across four areas: enhancing asset value, improving digital intelligence, strengthening cost awareness, and deepening regional expansion[42](index=42&type=chunk) [Enhance Asset Value, Solidify Benchmark Status](index=22&type=section&id=Enhance%20Asset%20Value,%20Solidify%20Benchmark%20Status) The Group plans to enhance asset value by upgrading benchmark projects, targeted tenant attraction, refined management, diversified revenue expansion, and improved customer stickiness, with three new projects scheduled to open in H2 - Key projects will continue to optimize tenant mix and brands to achieve asset appreciation, with Shenzhen Futian Galaxy COCO Park reinforcing its youthful positioning and trendsetter image[43](index=43&type=chunk)[45](index=45&type=chunk) - Diversified tenant attraction strategies, including "strategic co-development," "first-entry brands," and "innovative brands," will be adopted, with "one-store-one-policy" plans to improve occupancy and rental income[46](index=46&type=chunk) - Diversified revenue channels will be expanded, utilizing mall advertising spaces, venue rentals, and value-added services, alongside external collaborations for commercial consulting and training[47](index=47&type=chunk) - Three new projects, Shenzhen Guangming Galaxy COCO City, Shenzhen Galaxy WORLD • COCO Park Phase II, and Nanjing Galaxy COCO City, are scheduled to open in H2, with strict control over construction and preparation to ensure timely and quality openings[49](index=49&type=chunk) [Enhance Digital Intelligence, Drive Business Growth](index=25&type=section&id=Enhance%20Digital%20Intelligence,%20Drive%20Business%20Growth) The Group will optimize its full-scenario digital platform covering consumers, merchants, and building management, integrate financial and tenant attraction systems, build a leasing settlement (ERP) system, and deploy AI algorithms and IoT devices to enhance operational efficiency and customer experience - The B-side system "Star Butler" mini-program will be optimized to address high-frequency merchant needs and management efficiency, enabling online and paperless merchant services[50](index=50&type=chunk) - Existing financial and tenant attraction management systems will be integrated to build a leasing settlement (ERP) system for financial-business integration, while strengthening the C-side marketing platform to enhance smart and convenient consumer experiences[51](index=51&type=chunk) - Data middle-ground management standards will be improved, AI algorithms introduced for data application optimization, the BI data platform upgraded, and IoT temperature and humidity sensors deployed to enhance customer experience and save energy[52](index=52&type=chunk) [Strengthen Cost Awareness, Optimize Resource Allocation](index=26&type=section&id=Strengthen%20Cost%20Awareness,%20Optimize%20Resource%20Allocation) The Group will reduce costs and energy consumption in new project preparation and ongoing operations through refined management and control, and advance the "Baichuan Plan" to optimize parking revenue structure and property cost monitoring - Cost awareness will be strengthened during new project preparation to precisely plan capital investment and reduce unnecessary expenses[53](index=53&type=chunk) - Operating projects will focus on energy saving and consumption reduction, including air conditioning energy-saving renovations, optimizing system operation logic, and strengthening equipment maintenance[53](index=53&type=chunk) - The "Baichuan Plan" will be actively promoted to refine parking revenue structure management, establish a dynamic property cost monitoring mechanism, and optimize parking fee strategies and smart device applications[54](index=54&type=chunk) [Deepen Regional Cultivation and Expansion, Innovate Business for Efficiency](index=27&type=section&id=Deepen%20Regional%20Cultivation%20and%20Expansion,%20Innovate%20Business%20for%20Efficiency) The Group will continue to focus on the Greater Bay Area, selectively develop the Yangtze River Delta with targeted expansion strategies, and actively explore innovative light-asset business models to enhance competitiveness and operational performance - Adhering to the 14th Five-Year Plan strategic direction, the Group will deepen and strengthen its presence in the Greater Bay Area, selectively develop the Yangtze River Delta, and formulate targeted expansion strategies for key cities[55](index=55&type=chunk) - Innovative light-asset business models will be actively explored, expanding full-process consulting services for non-listed commercial properties and phased specialized service projects, aiming for breakthroughs in core businesses[56](index=56&type=chunk) [Financial Performance Analysis](index=28&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed analysis of the Group's financial performance, including revenue, costs, gross profit, and other income and expenses [Revenue](index=28&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue was approximately RMB 284.2 million, a 9.4% year-on-year decrease, with entrusted management and brand and management output services revenue declining, while master lease services revenue increased by 5.7% Total Revenue by Operation Model (RMB thousand) | Operation Model | For the six months ended June 30, 2025 Revenue (RMB thousand) | Share (%) | For the six months ended June 30, 2024 Revenue (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Entrusted Management Services | 185,706 | 65.3 | 209,691 | 66.8 | | Brand and Management Output Services | 34,439 | 12.1 | 43,458 | 13.8 | | Master Lease Services | 64,084 | 22.6 | 60,631 | 19.4 | | **Total** | **284,229** | **100.0** | **313,780** | **100.0** | - Entrusted management service revenue decreased by approximately **11.4%** year-on-year, primarily due to a reduction in projects[59](index=59&type=chunk) - Brand and management output service revenue decreased by approximately **20.8%** year-on-year, mainly affected by market conditions and the real estate industry, leading to reduced upfront service revenue from consulting projects[59](index=59&type=chunk) - Master lease service revenue increased by approximately **5.7%** year-on-year, primarily due to steady growth in operating income from master lease projects opened in recent years[60](index=60&type=chunk) [Cost of Services](index=29&type=section&id=Cost%20of%20Services) For the six months ended June 30, 2025, cost of services was approximately RMB 135.5 million, a 10.8% year-on-year decrease, mainly due to fewer entrusted management projects and reduced operating costs from refined operations - Cost of services decreased by approximately **10.8%** year-on-year, primarily due to a reduction in entrusted management projects and lower operating costs from refined operations[61](index=61&type=chunk) [Gross Profit and Gross Profit Margin](index=29&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) For the six months ended June 30, 2025, gross profit was approximately RMB 148.7 million, an 8.2% year-on-year decrease, while the overall gross profit margin increased by 0.7 percentage points to 52.3%, driven by a significant 11.8 percentage point increase in master lease services gross profit margin to 24.5% Gross Profit and Gross Profit Margin by Operation Model | Operation Model | For the six months ended June 30, 2025 Gross Profit (RMB thousand) | For the six months ended June 30, 2025 Gross Profit Margin (%) | For the six months ended June 30, 2024 Gross Profit (RMB thousand) | For the six months ended June 30, 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Entrusted Management Services | 107,144 | 57.7 | 121,503 | 57.9 | | Brand and Management Output Services | 25,835 | 75.0 | 32,675 | 75.2 | | Master Lease Services | 15,702 | 24.5 | 7,702 | 12.7 | | **Total** | **148,681** | **52.3** | **161,880** | **51.6** | - Overall gross profit margin increased by approximately **0.7 percentage points to 52.3%**[65](index=65&type=chunk) - Master lease service gross profit margin increased by approximately **11.8 percentage points to 24.5%**, primarily due to steady growth in operating income and cost reduction efforts[69](index=69&type=chunk) [Other Income](index=30&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income was approximately RMB 15.6 million, mainly comprising bank interest income - Other income was approximately **RMB 15.6 million**, primarily consisting of bank interest income[66](index=66&type=chunk) [Other Gains and Losses](index=30&type=section&id=Other%20Gains%20and%20Losses) For the six months ended June 30, 2025, net other losses were approximately RMB 1.1 million, mainly due to foreign exchange differences - Net other losses were approximately **RMB 1.1 million**, primarily due to foreign exchange differences[67](index=67&type=chunk) [Impairment Losses Recognized Under Expected Credit Loss Model](index=30&type=section&id=Impairment%20Losses%20Recognized%20Under%20Expected%20Credit%20Loss%20Model) For the six months ended June 30, 2025, impairment losses recognized by the Group were approximately RMB 0.7 million, a decrease from RMB 1.3 million in the prior period, mainly due to changes in estimated future recovery of trade receivables - Impairment losses recognized were approximately **RMB 0.7 million**, a year-on-year decrease, primarily due to changes in estimated future recovery of trade receivables[68](index=68&type=chunk) [Selling Expenses](index=31&type=section&id=Selling%20Expenses) For the six months ended June 30, 2025, selling expenses were approximately RMB 6.7 million, a significant 54.5% year-on-year decrease, mainly due to fewer entrusted management projects and effective cost control through targeted marketing activities - Selling expenses decreased by approximately **54.5%** year-on-year, primarily due to a reduction in entrusted management projects and targeted marketing activities[70](index=70&type=chunk) [Administrative Expenses](index=31&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses were approximately RMB 26.3 million, a 17.0% year-on-year decrease, mainly due to continuous optimization of organizational structure and improved management efficiency - Administrative expenses decreased by approximately **17.0%** year-on-year, primarily due to continuous optimization of organizational structure and improved management efficiency[71](index=71&type=chunk) [Finance Costs](index=31&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs were approximately RMB 18.5 million, largely consistent with the prior year, primarily representing interest expenses on lease liabilities recognized for master lease projects under HKFRS 16 - Finance costs were approximately **RMB 18.5 million**, largely consistent with the prior year, primarily representing interest expenses on lease liabilities for master lease projects[72](index=72&type=chunk) [Share of Results of a Joint Venture](index=31&type=section&id=Share%20of%20Results%20of%20a%20Joint%20Venture) For the six months ended June 30, 2025, the Group's share of results of a joint venture was nil, compared to a loss of approximately RMB 0.1 million in the prior year - Share of results of a joint venture was **nil**, compared to a loss of approximately **RMB 0.1 million** in the prior year[73](index=73&type=chunk) [Income Tax Expense](index=32&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was approximately RMB 24.9 million, a 9.0% year-on-year decrease, primarily due to a reduction in profit before tax - Income tax expense decreased by approximately **9.0%** year-on-year, primarily due to a reduction in profit before tax[74](index=74&type=chunk) [Profit for the Period](index=32&type=section&id=Profit%20for%20the%20Period) For the six months ended June 30, 2025, the Group's profit for the period was approximately RMB 86.1 million, a 0.5% year-on-year decrease, with profit attributable to owners of the Company decreasing by 2.5% to RMB 86.9 million - The Group's profit for the period decreased by approximately **0.5%** to **RMB 86.1 million**[75](index=75&type=chunk) - Profit attributable to owners of the Company decreased by approximately **2.5%** to **RMB 86.9 million**[75](index=75&type=chunk) [Financial Position and Liquidity](index=32&type=section&id=Financial%20Position%20and%20Liquidity) This section analyzes the Group's financial position, including trade and other receivables/payables, contingent liabilities, liquidity, and gearing ratio [Trade and Other Receivables](index=32&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, trade and other receivables were approximately RMB 47.3 million, an increase of approximately 7.5% from December 31, 2024, mainly due to increased engineering investment in new projects and cyclical differences in settling management service fees with owners - Trade and other receivables increased by approximately **7.5%** to **RMB 47.3 million**, primarily due to increased engineering investment in new projects and cyclical differences in management service fee settlements[76](index=76&type=chunk) [Trade and Other Payables](index=32&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables were approximately RMB 223.2 million, a decrease of approximately 22.0% from December 31, 2024, mainly due to the payment of year-end bonuses accrued in the previous year and other payables - Trade and other payables decreased by approximately **22.0%** to **RMB 223.2 million**, primarily due to the payment of prior year's accrued year-end bonuses and other payables[77](index=77&type=chunk) [Contingent Liabilities](index=33&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[78](index=78&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The Group maintains a stable financial position with ample liquidity and bank balances; as of June 30, 2025, short-term bank deposits, cash, and cash equivalents totaled approximately RMB 1,368.4 million, largely consistent with December 31, 2024 - The Group maintains a stable financial position with ample liquidity and bank balances[79](index=79&type=chunk) - Short-term bank deposits, cash, and cash equivalents totaled approximately **RMB 1,368.4 million**, largely consistent with December 31, 2024[79](index=79&type=chunk) [Bank Loans and Other Borrowings](index=33&type=section&id=Bank%20Loans%20and%20Other%20Borrowings) As of June 30, 2025, the Group had no bank loans or other borrowings - As of June 30, 2025, the Group had no bank loans or other borrowings[80](index=80&type=chunk) [Gearing Ratio](index=33&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio was approximately 44.8%, largely consistent with 44.9% at December 31, 2024 - The gearing ratio was approximately **44.8%**, largely consistent with December 31, 2024[81](index=81&type=chunk) [Foreign Exchange Risk](index=33&type=section&id=Foreign%20Exchange%20Risk) The Group's primary business and most financial assets and liabilities are denominated in RMB; while no forward foreign exchange contracts are used for hedging, management continues to monitor and mitigate risks - The Group's primary business is denominated in RMB, and it has not entered into forward foreign exchange contracts to hedge foreign exchange risk[82](index=82&type=chunk) [Use of Proceeds](index=34&type=section&id=Use%20of%20Proceeds) This section details the net proceeds from the global offering and over-allotment option, including their revised intended uses and utilization status [Net Proceeds from Global Offering and Over-allotment Option](index=34&type=section&id=Net%20Proceeds%20from%20Global%20Offering%20and%20Over-allotment%20Option) The Company raised approximately RMB 841.8 million in net proceeds from its global offering and over-allotment option; the Board resolved on August 25, 2022, to change the intended use to capitalize on master lease service market opportunities, with approximately RMB 471.8 million utilized by June 30, 2025, primarily for leasing and renovation of retail commercial properties under the master lease service model - Net proceeds from the global offering and over-allotment option totaled approximately **RMB 841.8 million**[83](index=83&type=chunk)[85](index=85&type=chunk) - The Board resolved on August 25, 2022, to change the intended use of net proceeds to capitalize on master lease service market opportunities[84](index=84&type=chunk) Use of Net Proceeds (As of June 30, 2025, RMB million) | Revised Use | Share (%) | Unutilized as of Jan 1, 2025 | Utilized in H1 2025 | Cumulative Utilized | Unutilized as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Leasing and renovation of retail commercial properties under master lease service model | 75% | 346.7 | 52.3 | 337.0 | 294.4 | | Minority equity investments in companies owning quality commercial properties | 10% | 45.2 | – | 39.0 | 45.2 | | Enhancing information technology systems | 5% | 32.0 | 1.6 | 11.6 | 30.4 | | General business purposes and working capital | 10% | – | – | 84.2 | – | | **Total** | **100%** | **423.9** | **53.9** | **471.8** | **370.0** | - As of the date of this announcement, approximately **RMB 370.0 million** of unutilized net proceeds has been deposited in licensed banks and is intended to be used as originally planned[85](index=85&type=chunk)[86](index=86&type=chunk) [Other Important Information](index=36&type=section&id=Other%20Important%20Information) This section covers additional key information, including employee numbers, remuneration policy, future investment plans, corporate governance, and dividend arrangements [Number of Employees and Remuneration Policy](index=36&type=section&id=Number%20of%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 840 employees, a decrease from 954 at December 31, 2024; remuneration is based on qualifications, experience, job nature, and performance, including cash bonuses, medical plans, retirement plans, and share awards - As of June 30, 2025, the Group had **840 employees**, a decrease of **114** from December 31, 2024[87](index=87&type=chunk) - Remuneration is based on employee qualifications, experience, job nature, and performance, including cash performance bonuses, medical plans, retirement plans, share option schemes, and restricted share unit awards[87](index=87&type=chunk) - Staff costs for H1 2025 included share-based payment expenses of approximately **RMB 981,000**[87](index=87&type=chunk) [Future Plans for Material Investments and Capital Assets](index=36&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) For the six months ended June 30, 2025, the Group had no specific plans for material investments or acquisitions of major capital assets or other businesses, beyond the expansion plans outlined in the prospectus - Beyond the expansion plans outlined in the prospectus, the Group has no specific plans for material investments or acquisitions of major capital assets or other businesses[88](index=88&type=chunk) [Material Investments, Acquisitions, and Disposals of Subsidiaries, Associates, and Joint Ventures](index=36&type=section&id=Material%20Investments,%20Acquisitions,%20and%20Disposals%20of%20Subsidiaries,%20Associates,%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[89](index=89&type=chunk) [Pledges of Assets](index=37&type=section&id=Pledges%20of%20Assets) As of June 30, 2025, the Group had not pledged any assets - As of June 30, 2025, the Group had not pledged any assets[90](index=90&type=chunk) [Corporate Governance](index=37&type=section&id=Corporate%20Governance) The Company is committed to maintaining high corporate governance standards, complying with the Model Code for Securities Transactions by Directors and the Corporate Governance Code as set out in the HKEX Listing Rules - The Company's directors have complied with the required standards set out in the Model Code for the six months ended June 30, 2025[91](index=91&type=chunk) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[92](index=92&type=chunk) - The Company has applied the principles of good corporate governance and complied with the code provisions set out in Part 2 of the Corporate Governance Code in Appendix C1 of the Listing Rules[94](index=94&type=chunk) [Interim Dividend and Closure of Register of Members](index=38&type=section&id=Interim%20Dividend%20and%20Closure%20of%20Register%20of%20Members) The Board declared an interim dividend of HK 5.0 cents per ordinary share for the six months ended June 30, 2025; the register of members will be closed from November 28 to December 1, 2025, with the interim dividend expected to be paid on or around December 19, 2025 - The Board declared an interim dividend of **HK 5.0 cents per ordinary share** for the six months ended June 30, 2025[95](index=95&type=chunk) - The register of members will be closed from **Friday, November 28, 2025, to Monday, December 1, 2025**[95](index=95&type=chunk) - The proposed interim dividend is expected to be paid on or around **Friday, December 19, 2025**[95](index=95&type=chunk) [Review of Interim Results](index=38&type=section&id=Review%20of%20Interim%20Results) The unaudited interim financial information for the six months ended June 30, 2025, has been reviewed by the Company's auditor, Deloitte Touche Tohmatsu, and discussed and reviewed by the Audit Committee with management - The unaudited interim financial information has been reviewed by the Company's auditor, Deloitte Touche Tohmatsu[96](index=96&type=chunk) - The Company's Audit Committee, together with management, has reviewed the accounting principles and practices adopted by the Group and discussed matters including internal control, risk management, and financial reporting[96](index=96&type=chunk) [Publication of Interim Results and Interim Report](index=39&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the HKEX and Company websites; the Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and posted on the HKEX and Company websites in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.g-cre.com)[97](index=97&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and posted on the HKEX and Company websites in due course[97](index=97&type=chunk)

[Company Overview](index=1&type=section&id=Company%20Overview) This section provides an overview of the company's interim results, financial highlights, operational achievements, and strategic market positioning [Announcement Information](index=1&type=section&id=Announcement%20Information) This announcement presents Bairong Inc.'s unaudited interim results for the six months ended June 30, 2025, which have been reviewed by the company's audit committee - This announcement presents Bairong Inc.'s unaudited interim results for the six months ended June 30, 2025, reviewed by the company's audit committee[2](index=2&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) The company sustained and strengthened its growth momentum during the reporting period, achieving significant increases in revenue and profit, with healthy non-IFRS profit and margin levels demonstrating sustained profitability Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,611,797 | 1,321,348 | 22 | | MaaS | 501,941 | 421,352 | 19 | | BaaS | 1,109,856 | 899,996 | 23 | | BaaS – Financial Industry Cloud | 856,957 | 589,473 | 45 | | BaaS – Insurance Industry Cloud | 252,899 | 310,523 | (19) | | Gross Profit | 1,182,428 | 967,155 | 22 | | Operating Profit | 200,894 | 156,832 | 28 | | Profit for the Period | 201,224 | 142,833 | 41 | | Non-IFRS Profit | 254,449 | 197,479 | 29 | | Non-IFRS EBITDA | 282,539 | 243,481 | 16 | - In the first half of 2025, the company's revenue reached **RMB 1,611.80 million**, a **22% year-on-year increase**; non-IFRS profit was **RMB 254.45 million**, with a non-IFRS profit margin maintained at **16%**, a **1 percentage point increase** year-on-year[4](index=4&type=chunk) [Operational Highlights](index=3&type=section&id=Operational%20Highlights) The company made significant progress in AI R&D and commercialization, launching the CybotStar enterprise-grade intelligent agent platform, deploying large models and multi-emotional speech synthesis, strengthening AI infrastructure, and embedding AI capabilities into high-potential sectors - Successfully launched the CybotStar enterprise-grade intelligent agent platform, optimizing customer experience and interaction, with agreements signed with multiple institutions[5](index=5&type=chunk) - Pioneered the large-scale production deployment of proactive large models and multi-emotional speech synthesis models, implementing the GRPO reinforcement learning framework to significantly enhance model iteration efficiency[5](index=5&type=chunk) - The first phase of the Gaodian computer room was completed and put into operation, with a self-developed heterogeneous computing cluster launched, fully compatible with various GPUs, laying the foundation for large-scale multi-scenario deployment[5](index=5&type=chunk) - Leveraging VoiceGPT and the CybotStar platform, AI capabilities are deeply embedded into high-potential sectors such as telecommunications, healthcare, and large retail, providing AIGC application services[6](index=6&type=chunk) [Operational Review](index=4&type=section&id=Operational%20Review) As a continuously profitable AI cloud service provider, the company serves over 8,000 institutional clients in China, offering full-chain solutions using generative and decisive AI, benefiting from China's digitalization and AI policy dividends to solidify its industry-leading position [Business Model and Technological Advantages](index=4&type=section&id=Business%20Model%20and%20Technological%20Advantages) - The company is a continuously profitable AI cloud service provider, serving over **8,000 institutional clients** in China, including most state-owned banks, joint-stock banks, and regional banks[7](index=7&type=chunk) - Utilizes generative AI, decisive AI, big data, machine learning, and cloud computing to provide full-chain products and solutions covering intelligent customer acquisition, risk control, operations, and user relationship management[7](index=7&type=chunk) - Focuses on AI application development rather than infrastructure construction, ensuring successful commercialization of AIGC applications[7](index=7&type=chunk) - As of June 30, 2025, the company obtained **461 patents and software copyrights**, covering key areas such as artificial intelligence, machine learning, and privacy computing[10](index=10&type=chunk) [Market Environment and Strategic Opportunities](index=4&type=section&id=Market%20Environment%20and%20Strategic%20Opportunities) - Benefited from the warming policy and industry environment for digitalization and artificial intelligence, including the "Digital China Construction 2025 Action Plan," the formation of industry standards, and the release of B-side demand[9](index=9&type=chunk) - 2025 is widely defined by the industry as the "Year of the Agent," and the company will continue to benefit from strategic opportunities in "Data Elements ×" and "AI + hundreds of industries"[9](index=9&type=chunk) [Business Performance](index=5&type=section&id=Business%20Performance) [Model-as-a-Service (MaaS) Business](index=5&type=section&id=Model-as-a-Service%20(MaaS)%20Business) The MaaS business assists institutions in intelligent decision-making by outputting models, leveraging the company's over ten years of user profiling assets and cloud platform advantages, achieving a 19% year-on-year revenue growth and a high core client retention rate of 98%, demonstrating robust profitability [MaaS Business Introduction](index=5&type=section&id=MaaS%20Business%20Introduction) - MaaS business assists institutions in intelligent decision-making by outputting models and evaluation results, with core advantages in over **ten years of user profiling assets** and an accumulation of over **8,000 clients**[13](index=13&type=chunk) - The MaaS cloud platform is secure and reliable, with stability as high as **99.999%**, providing over **300 million** various query requests daily[13](index=13&type=chunk) - The business model involves charging service fees or annual fees based on query volume, allowing for rapid cost dilution and substantial profits as scale expands[13](index=13&type=chunk) [MaaS Key Metrics](index=6&type=section&id=MaaS%20Key%20Metrics) MaaS Key Metrics (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | MaaS Revenue | 501,941 | 421,352 | 19 | | Core Client Revenue | 380,534 | 329,398 | 16 | | Number of Core Clients | 167 | 165 | 1 | | Average Revenue per Core Client | 2,279 | 1,996 | 14 | | Core Client Retention Rate | 98% | 96% | 2pp | - MaaS business revenue increased **19% year-on-year** to **RMB 501.94 million**, with **167 core clients** and a core client retention rate of **98%**[14](index=14&type=chunk) [Business-as-a-Service (BaaS) Business](index=7&type=section&id=Business-as-a-Service%20(BaaS)%20Business) The BaaS business, based on generative AI technology, assists institutions with intelligent marketing and operations through products like AI VoiceGPT, adopting performance-driven pricing and achieving commercial breakthroughs in financial and general industry sectors, with strong growth in Financial Industry Cloud revenue and resilience in Insurance Industry Cloud [BaaS Business Introduction](index=7&type=section&id=BaaS%20Business%20Introduction) - BaaS business, based on generative AI technology, assists institutions in intelligent marketing and operations through self-developed AI VoiceGPT, enhancing asset operation efficiency in credit, wealth management, insurance, and internet technology industries[18](index=18&type=chunk) - AI VoiceGPT can simulate human voices for smooth multi-round conversations, with semantic understanding accuracy exceeding **99%**[18](index=18&type=chunk) - BaaS business adopts a performance-driven pricing structure, charging technical service fees or commissions based on the scale of transactions facilitated, without upfront fees, and is responsible for clients' ultimate performance KPIs[18](index=18&type=chunk) [BaaS Financial Industry Cloud](index=8&type=section&id=BaaS%20Financial%20Industry%20Cloud) BaaS Financial Industry Cloud leverages AIGC and decisive AI to provide integrated full-process services for financial institutions, achieving innovative applications in green finance and education, with a 45% year-on-year revenue growth, demonstrating strong market expansion capabilities [Financial Industry Cloud Business Details](index=8&type=section&id=Financial%20Industry%20Cloud%20Business%20Details) - BaaS Financial Industry Cloud utilizes AIGC to efficiently acquire new users and operate existing ones, helping banks, consumer finance, internet finance, securities, and wealth management institutions revitalize assets[19](index=19&type=chunk) - The self-developed large language model BR-LLM officially passed large model备案, and based on this, innovative products such as the CybotStar enterprise-grade intelligent agent platform, digital humans, and VoiceGPT intelligent voice were launched[20](index=20&type=chunk) - In the financial sector, a one-stop green finance solution was created, applying machine learning, OCR, NLP, and the BR-LLM large model to build an intelligent system for banks covering ten scenarios, including green certification and ESG evaluation[20](index=20&type=chunk) - In the education sector, a mental health assessment integrated machine was launched, providing innovative mental health services through the ultra-realistic digital human "Little Wukong," enhancing the efficiency and coverage of school mental health work[21](index=21&type=chunk) [BaaS - Financial Industry Cloud Key Metrics](index=9&type=section&id=BaaS%20-%20Financial%20Industry%20Cloud%20Key%20Metrics) BaaS Financial Industry Cloud Key Metrics (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | BaaS – Financial Industry Cloud Revenue | 856,957 | 589,473 | 45 | - BaaS Financial Industry Cloud revenue was **RMB 856.96 million**, a **45% year-on-year increase**[21](index=21&type=chunk) [BaaS Insurance Industry Cloud](index=10&type=section&id=BaaS%20Insurance%20Industry%20Cloud) BaaS Insurance Industry Cloud empowers thousands of insurance agents through the Riyue Baobox application, demonstrating resilience in a challenging economic and operational environment, enhancing efficiency with AI technology, achieving a 9% year-on-year increase in premium transactions, despite a 19% year-on-year revenue decrease [Insurance Industry Cloud Business Details](index=10&type=section&id=Insurance%20Industry%20Cloud%20Business%20Details) - Insurance Industry Cloud empowers thousands of insurance agents through the Riyue Baobox application, providing tools for user management, talent management, and automated signing processes[24](index=24&type=chunk) - Utilizes decisive AI for customer insights, generative AI for precise insurance product recommendations, and an offline agent team for high-value policy user retention[24](index=24&type=chunk) - Actively responds to more prudent industry regulations, enhancing business efficiency and customer experience through AI technology, reducing costs, and adapting to the "reporting and execution alignment" policy requirements[24](index=24&type=chunk) [BaaS - Insurance Industry Cloud Key Metrics](index=10&type=section&id=BaaS%20-%20Insurance%20Industry%20Cloud%20Key%20Metrics) BaaS Insurance Industry Cloud Key Metrics (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | BaaS – Insurance Industry Cloud Revenue | 252,899 | 310,523 | (19) | | First-Year Premium Income | 203,963 | 254,658 | (20) | | First-Year Premiums | 2,006,151 | 1,904,544 | 5 | | Renewal Premium Income | 48,936 | 55,865 | (12) | | Renewal Premiums | 1,112,639 | 968,119 | 15 | - BaaS Insurance Industry Cloud revenue decreased **19% year-on-year** to **RMB 252.90 million**, but transaction premiums increased **9% year-on-year** to **RMB 3,118.79 million**, with a life insurance premium persistency rate exceeding **90%**[25](index=25&type=chunk) [Future Outlook and Strategy](index=11&type=section&id=Future%20Outlook%20and%20Strategy) [Macroeconomic Assessment and AI Strategy](index=11&type=section&id=Macroeconomic%20Assessment%20and%20AI%20Strategy) The company assesses a resilient macroeconomic environment, with the explosion of generative AI creating new opportunities across industries, and prioritizes "fully embracing AI" as its top strategic goal, focusing resources on iterating generative and decisive AI to accelerate the closed-loop from laboratory to large-scale commercialization - Macroeconomic assessment indicates economic resilience, with the explosion of generative AI opening up incremental opportunities across industries, supported by national policies for AI development[28](index=28&type=chunk) - The company prioritizes "fully embracing AI" as its top strategic goal, concentrating resources on iterating generative and decisive AI, and accelerating the closed-loop from laboratory to large-scale commercialization[28](index=28&type=chunk) [R&D Strategy](index=11&type=section&id=R%26D%20Strategy) The R&D strategy focuses on continuously attracting top algorithm scientists and engineering talent, while simultaneously refining NLP, AutoML, privacy computing, and AI Agent collaboration frameworks, with a key emphasis on enhancing voice robot multilingual coverage, emotional recognition, and multi-agent collaboration capabilities to solidify its position in the industry's top tier - Continuously attracts top algorithm scientists and engineering talent, complemented by internal "AI training camps" to enhance overall AI density[28](index=28&type=chunk) - Simultaneously refines NLP, AutoML, privacy computing, and AI Agent collaboration frameworks, with a key focus on enhancing voice robot multilingual coverage, emotional recognition, and multi-agent collaboration capabilities[28](index=28&type=chunk) [Business Strategy](index=11&type=section&id=Business%20Strategy) The business strategy aims to deeply cultivate financial scenarios such as wealth management and securities, while horizontally accelerating the export of "model + scenario" integrated solutions to non-financial sectors like healthcare, education, and retail, and, while strictly adhering to privacy and data security, connecting supply and demand to form a positive flywheel of technological capability, experience accumulation, commercialization, and technology feedback - Continues to deeply cultivate financial scenarios such as wealth management and securities, using AI to drive refined operations and risk control[28](index=28&type=chunk) - Accelerates the export of "model + scenario" integrated solutions to non-financial sectors such as healthcare, education, retail, and recruitment, helping B-side clients reduce costs and increase efficiency, and C-side users receive more precise service matching[28](index=28&type=chunk) - While strictly adhering to privacy and data security, connects supply and demand to form a positive flywheel of "technological capability → experience accumulation → commercialization → technology feedback"[28](index=28&type=chunk) [Financial Analysis](index=12&type=section&id=Financial%20Analysis) [Consolidated Income Statement Analysis](index=12&type=section&id=Consolidated%20Income%20Statement%20Analysis) During the reporting period, the company's total revenue and gross profit both increased by 22%, while R&D, sales, and marketing expenses significantly rose due to AI investments and market promotion, ultimately leading to a 41% year-on-year increase in profit for the period, demonstrating strong profitability [Revenue Analysis](index=13&type=section&id=Revenue%20Analysis) - Total revenue increased **22% year-on-year** to **RMB 1,611.80 million**, primarily driven by enhanced product and service capabilities and macroeconomic recovery[31](index=31&type=chunk) - MaaS revenue increased **19% year-on-year** to **RMB 501.94 million**, mainly due to expanded application areas and optimized AI algorithms[31](index=31&type=chunk) - BaaS Financial Industry Cloud revenue increased **45% year-on-year** to **RMB 856.96 million**, primarily due to strong credit demand, improved operational efficiency, and enhanced generative AI capabilities[31](index=31&type=chunk) - BaaS Insurance Industry Cloud revenue decreased **19% year-on-year** to **RMB 252.90 million**, but premiums continued to grow despite declining product pre-set interest rates[32](index=32&type=chunk) [Cost of Sales and Gross Profit](index=13&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) - Cost of sales increased **21% year-on-year** to **RMB 429.37 million**, consistent with business scale growth[33](index=33&type=chunk) - Gross profit increased **22% year-on-year** to **RMB 1,182.43 million**, with gross margin remaining stable at **73%**[34](index=34&type=chunk) [Expense Analysis](index=13&type=section&id=Expense%20Analysis) - R&D expenses increased **33% year-on-year** to **RMB 301.54 million**, primarily due to increased company investment in AI, with its proportion of revenue rising by **2 percentage points** to **19%**[35](index=35&type=chunk) - General and administrative expenses remained stable year-on-year at **RMB 140.21 million**[36](index=36&type=chunk) - Sales and marketing expenses increased **20% year-on-year** to **RMB 606.28 million**, primarily for efficient acquisition of new users, improved conversion efficiency, and brand promotion[37](index=37&type=chunk) [Other Income and Profit for the Period](index=14&type=section&id=Other%20Income%20and%20Profit%20for%20the%20Period) - Other net income increased **15% year-on-year** to **RMB 83.75 million**, mainly due to increased net gain from disposal of a subsidiary, partially offset by exchange losses[38](index=38&type=chunk) - Profit for the period increased **41% year-on-year** to **RMB 201.22 million**[39](index=39&type=chunk) [Non-IFRS Measures](index=14&type=section&id=Non-IFRS%20Measures) The company uses non-IFRS profit and EBITDA as supplementary financial indicators to better reflect core operating performance, with non-IFRS profit increasing by 29% and non-IFRS EBITDA by 16% year-on-year during the reporting period - The company uses non-IFRS profit and EBITDA as supplementary measures to eliminate the impact of non-indicative items such as share-based payments, facilitating comparison of operating performance[40](index=40&type=chunk) Reconciliation of Non-IFRS Measures (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 201,224 | 142,833 | 41 | | Add: Share-based Payments | 53,225 | 54,646 | (3) | | **Non-IFRS Profit for the Period** | **254,449** | **197,479** | **29** | | Non-IFRS Profit Margin | 16% | 15% | 1pp | | EBITDA | 229,314 | 188,835 | 21 | | Add: Share-based Payments | 53,225 | 54,646 | (3) | | **Non-IFRS EBITDA** | **282,539** | **243,481** | **16** | | Non-IFRS EBITDA Margin | 18% | 18% | 0pp | [Consolidated Statement of Financial Position Analysis](index=16&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20Analysis) As of June 30, 2025, the company maintained ample cash and cash equivalents and cash reserves, with the gearing ratio significantly decreasing to 0.15, indicating a healthy financial structure and liquidity [Liquidity, Financing, and Borrowing Sources](index=16&type=section&id=Liquidity%2C%20Financing%2C%20and%20Borrowing%20Sources) - As of June 30, 2025, cash and cash equivalents were **RMB 833.52 million**, and cash reserves were **RMB 2,895.78 million**, maintaining ample liquidity[43](index=43&type=chunk) [Gearing Ratio](index=16&type=section&id=Gearing%20Ratio) - As of June 30, 2025, the gearing ratio was **0.15**, a decrease from **0.21** as of December 31, 2024[48](index=48&type=chunk) [Condensed Consolidated Cash Flow Statement](index=26&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) During the reporting period, cash flow from operating activities turned positive, cash outflow from investing activities decreased, and cash outflow from financing activities also significantly reduced, resulting in a net increase in cash and cash equivalents Condensed Consolidated Cash Flow Statement (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from/(used in) Operating Activities | 150,740 | (126,671) | | Net Cash (used in)/from Investing Activities | (37,348) | 17,701 | | Net Cash used in Financing Activities | (53,885) | (176,599) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 59,507 | (285,569) | | Cash and Cash Equivalents at End of Period | 833,518 | 627,190 | [Corporate Governance and Other Information](index=17&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Employees and Remuneration](index=17&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the company had 1,481 employees, with R&D personnel accounting for 57%, and total staff costs increased by 17.4% year-on-year, with employee incentives provided through share schemes - As of June 30, 2025, the Group had **1,481 employees**, with R&D personnel accounting for **57%**[52](index=52&type=chunk) - For the six months ended June 30, 2025, total staff costs were **RMB 495.39 million**, an increase of **17.4%** from **RMB 421.78 million** in the same period last year[52](index=52&type=chunk) - The company adopted the 2024 Share Scheme and Restricted Share Unit Scheme to incentivize employees[52](index=52&type=chunk) [Corporate Governance](index=18&type=section&id=Corporate%20Governance) The company is committed to high standards of corporate governance and complies with the Corporate Governance Code, though the roles of Chairman and Chief Executive Officer are combined, which the Board believes enhances strategic planning and decision-making efficiency - The company complies with the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are combined and held by Mr. Zhang Shaofeng, which the Board believes facilitates consistent leadership and efficient strategic planning[54](index=54&type=chunk) [Securities Transactions and Committees](index=18&type=section&id=Securities%20Transactions%20and%20Committees) The company complies with the standard code for directors' securities transactions and has an Audit Committee, Nomination Committee, Remuneration Committee, and Corporate Governance Committee, with the Audit Committee having reviewed the interim financial information. During the reporting period, the company repurchased 3,274,500 Class B shares to enhance shareholder value - The company has adopted a policy on securities dealing, and directors and relevant employees confirmed compliance with the code during the reporting period[55](index=55&type=chunk) - The Audit Committee, comprising three independent non-executive directors, reviewed the interim financial information and met with the independent auditor[56](index=56&type=chunk)[57](index=57&type=chunk) - For the six months ended June 30, 2025, the company repurchased a total of **3,274,500 Class B shares** on the Stock Exchange for a total consideration of approximately **HK$25.78 million**, to enhance long-term shareholder value[59](index=59&type=chunk) [Use of Proceeds from Global Offering](index=20&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company has utilized the net proceeds from its global offering for business expansion, R&D investments, strategic investments, and working capital, and has extended the utilization timetable for R&D investments and working capital to the end of 2026 - The net proceeds from the global offering, approximately **RMB 3,170.39 million**, were used for business expansion, R&D investments, strategic investments, and working capital[64](index=64&type=chunk)[65](index=65&type=chunk) Use of Proceeds from Global Offering and Utilization Status (as of June 30, 2025) | Purpose | IPO Proceeds (RMB million) | Proportion (%) | Net Unutilized Proceeds as of Jan 1, 2025 (RMB million) | Proceeds Utilized During Reporting Period (RMB million) | Unutilized Proceeds as of June 30, 2025 (RMB million) | Estimated Timetable for Full Utilization of Unutilized IPO Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Funding Business Expansion | 1,426.68 | 45 | – | – | – | Not Applicable | | Increasing R&D Investment | 951.12 | 30 | 252.32 | 182.05 | 70.27 | Before December 31, 2026 | | Strategic Investments and Acquisitions | 475.56 | 15 | – | – | – | Not Applicable | | Working Capital and General Corporate Purposes | 317.03 | 10 | 184.31 | 72.54 | 111.77 | Before December 31, 2026 | | **Total** | **3,170.39** | **100** | **436.63** | **254.59** | **182.04** | | - The estimated utilization timetable for R&D investments and working capital has been extended from the end of 2024 to the end of 2026[65](index=65&type=chunk) [Other Significant Matters](index=16&type=section&id=Other%20Significant%20Matters) During the reporting period, the company did not undertake any material investments, acquisitions, or disposals, had no pledged assets, material contingent liabilities, or capital commitments, was not involved in any material litigation, and the Board did not recommend an interim dividend [Material Investments, Acquisitions, and Disposals](index=16&type=section&id=Material%20Investments%2C%20Acquisitions%2C%20and%20Disposals) - For the six months ended June 30, 2025, the Group did not undertake or hold any material investments, nor were there any material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates[44](index=44&type=chunk)[45](index=45&type=chunk) [Pledged Assets and Contingent Liabilities](index=16&type=section&id=Pledged%20Assets%20and%20Contingent%20Liabilities) - As of June 30, 2025, the Group had no pledged assets, nor any material contingent liabilities or capital commitments[46](index=46&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Material Litigation and Dividends](index=20&type=section&id=Material%20Litigation%20and%20Dividends) - For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration[62](index=62&type=chunk) - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025[63](index=63&type=chunk) [Events After Reporting Period](index=21&type=section&id=Events%20After%20Reporting%20Period) - Other than those disclosed in this announcement, there were no other significant events after the reporting period that could affect the Group[66](index=66&type=chunk) [Notes to Financial Statements](index=27&type=section&id=Notes%20to%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=27&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) This interim financial report is prepared in accordance with the HKEX Listing Rules and IAS 34, reviewed by KPMG, with no material impact from accounting policy changes on the financial position - This interim financial report is prepared in accordance with the HKEX Listing Rules and IAS 34 "Interim Financial Reporting," and has been approved and authorized for issue by the Board[73](index=73&type=chunk) - KPMG has reviewed this interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[73](index=73&type=chunk) - IAS 21 (Revised) "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" was applied during this accounting period, but it had no material impact on the interim financial report[74](index=74&type=chunk) [Revenue Breakdown](index=28&type=section&id=Revenue%20Breakdown) Revenue primarily originates from MaaS and BaaS services, with BaaS Financial Industry Cloud being the largest contributor, and revenue recognition predominantly completed at a point in time Revenue by Category (for the Six Months Ended June 30) | Revenue Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | MaaS | 501,941 | 421,352 | | BaaS – Financial Industry Cloud | 856,957 | 589,473 | | BaaS – Insurance Industry Cloud | 252,899 | 310,523 | | **Total** | **1,611,797** | **1,321,348** | Revenue from Contracts with Customers Disaggregated by Timing of Revenue Recognition (for the Six Months Ended June 30) | Timing of Recognition | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | At a point in time | 1,007,959 | 751,894 | | Over a period of time | 603,838 | 569,454 | | **Total** | **1,611,797** | **1,321,348** | [Other Income Breakdown](index=29&type=section&id=Other%20Income%20Breakdown) Other income primarily includes net gains from financial investments, interest income from time deposits, net gain from disposal of a subsidiary, and government grants, with a significant increase in net gain from disposal of a subsidiary Other Income Breakdown (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net gain from financial investments measured at fair value through profit or loss | 23,209 | 22,501 | | Interest income from time deposits | 23,057 | 40,608 | | Net gain from disposal of a subsidiary | 22,858 | – | | Government grants and others | 18,775 | 11,149 | | Foreign currency exchange losses | (4,381) | (1,228) | | Fixed coupon note income | 229 | – | | **Total** | **83,747** | **73,030** | [Profit Before Tax Breakdown](index=29&type=section&id=Profit%20Before%20Tax%20Breakdown) Profit before tax is influenced by financial income, financial costs, staff costs, BaaS-related commissions, and depreciation and amortization, with staff costs and BaaS-related expenses being major components Financial Income and Costs (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income from bank deposits | 8,941 | 2,113 | | Interest expense on lease liabilities | (3,242) | (1,757) | | Interest expense on bank loans | – | (1,814) | Staff Costs Breakdown (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 402,752 | 336,998 | | Equity-settled share-based payment expenses | 53,225 | 54,646 | | Contributions to defined contribution retirement plans | 34,679 | 29,024 | | Termination benefits | 4,729 | 1,109 | | **Total** | **495,385** | **421,777** | Other Items Breakdown (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Analytics service costs | 77,807 | 51,569 | | BaaS-related insurance brokerage commissions, operating and marketing expenses | 704,602 | 548,173 | | Depreciation of property, plant and equipment | 14,639 | 12,258 | | Amortization of intangible assets | 638 | 3,639 | | Depreciation of right-of-use assets | 18,338 | 18,023 | | Impairment losses – receivables and others | 11,496 | 3,964 | | Impairment losses – loans | 5,759 | 7,022 | [Income Tax Expense](index=30&type=section&id=Income%20Tax%20Expense) During the reporting period, income tax expense primarily consisted of current tax provision for China corporate income tax and changes in deferred tax assets/liabilities Income Tax Expense Breakdown (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – Provision for China corporate income tax for the period | 2,170 | 10,868 | | Deferred tax – Change in deferred tax assets/liabilities | (1,996) | (244) | | **Total** | **174** | **10,624** | [Basic and Diluted Earnings Per Share](index=31&type=section&id=Basic%20and%20Diluted%20Earnings%20Per%20Share) During the reporting period, the net profit attributable to equity holders of the company increased, leading to an improvement in both basic and diluted earnings per share Basic and Diluted Earnings Per Share (for the Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net profit attributable to equity holders of the company (RMB thousands) | 190,264 | 139,956 | | Weighted average number of ordinary shares | 442,648,756 | 469,905,966 | | **Basic earnings per share attributable to equity holders of the company (RMB)** | **0.43** | **0.30** | | Adjustment for share options and share award schemes | 12,494,541 | 12,157,942 | | Weighted average number of ordinary shares for diluted EPS calculation | 455,143,297 | 482,063,908 | | **Diluted earnings per share attributable to equity holders of the company (RMB)** | **0.42** | **0.29** | [Dividends](index=32&type=section&id=Dividends) For the periods ended June 30, 2025, and 2024, no dividends were declared by entities within the Group to their owners - For the periods ended June 30, 2025, and 2024, no dividends were declared by entities within the Group to their owners[89](index=89&type=chunk) [Receivables and Payables](index=32&type=section&id=Receivables%20and%20Payables) Net receivables and payables both increased, with most receivables aged within 3 months and most payables settled within 6 months, indicating healthy short-term solvency Ageing Analysis of Receivables (as of June 30, 2025) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months (inclusive) | 473,016 | 462,846 | | 3 to 6 months (inclusive) | 120,433 | 96,270 | | 6 months to 1 year (inclusive) | 74,027 | 50,804 | | Over 1 year | 13,528 | 7,269 | | Less: Loss allowance | (11,130) | (5,373) | | **Net Receivables** | **669,874** | **611,816** | Ageing Analysis of Payables (as of June 30, 2025) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 233,246 | 246,252 | | 6 months to 1 year | 32,652 | 8,069 | | 1 to 2 years | 2,515 | 2,336 | | **Total** | **268,413** | **256,657** |

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依 賴該等內容而引致之任何損失承擔任何責任。 （在中華人民共和國註冊成立之股份有限公司） （股份代號：06881） 公告 截至2025年6月30日止六個月之中期業績 中國銀河證券股份有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其 附屬公司截至2025年6月30日止六個月之未經審核中期業績。本公告列載本公司 2025年中期報告全文，並符合香港聯合交易所有限公司證券上市規則中有關中期 業績初步公告附載的資料之要求。本公司2025年中期報告的印刷版本將於2025年 9月末之前寄發予本公司H股股東（如有需要），並可於其時在香港交易及結算所有 限公司網站 www.hkexnews.hk 及本公司網站 www.chinastock.com.cn 閱覽。 承董事會命 中國銀河證券股份有限公司 王晟 董事長及執行董事 中國北京 2025年8月28日 於本公告日期，本公司執行董事為王晟先生（董事長）及薛軍先生（副董事長及總 裁）；非執行董事為楊體軍先生 ...

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) The company reported significant growth in revenue and profit, with strong performance across both IFRS and non-IFRS financial metrics [Key Highlights](index=1&type=section&id=Key%20Highlights) The company achieved significant revenue and profit growth, with substantial increases in profit attributable to owners and basic earnings per share, alongside strong non-IFRS financial metrics Key Financial Metrics | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) / Percentage Point Change | | :--- | :--- | :--- | :--- | | Revenue | 2,593,390 | 2,041,461 | 27.0% | | Store-level Operating Profit | 379,188 | 296,155 | 28.0% | | Store-level Operating Profit Margin | 14.6% | 14.5% | +0.1 | | Profit Before Income Tax | 110,097 | 40,894 | 169.2% | | Profit for the Period Attributable to Owners of the Company | 65,924 | 10,907 | 504.4% | | Basic Earnings Per Share (RMB yuan) | 0.50 | 0.08 | 525.0% | | Diluted Earnings Per Share (RMB yuan) | 0.49 | 0.08 | 512.5% | | **Non-IFRS Measures** | | | | | Store-level EBITDA | 502,818 | 393,902 | 27.7% | | Store-level EBITDA Margin (%) | 19.4% | 19.3% | +0.1 | | Adjusted EBITDA | 322,877 | 233,387 | 38.3% | | Adjusted EBITDA Margin (%) | 12.4% | 11.4% | +1.0 | | Adjusted Net Profit | 91,420 | 50,890 | 79.6% | | Adjusted Net Profit Margin (%) | 3.5% | 2.5% | +1.0 | [Business Overview](index=3&type=section&id=Business%20Overview) The company continues to expand its store network and membership base, with robust performance in first and second-tier cities despite a slight decline in same-store sales growth due to new market high bases [Business Summary](index=3&type=section&id=Business%20Summary) The company continues to expand its store network, significantly increasing total store count and cities entered, alongside substantial growth in membership. Same-store sales growth saw a slight decline due to high bases in new markets, but first and second-tier cities showed stable performance Store and Membership Data **Store Count:** | Market | As of June 30, 2025 | As of December 31, 2024 | As of June 30, 2024 | | :--- | :--- | :--- | :--- | | First-tier City Market | 515 | 509 | 498 | | Non-first-tier City Market | 683 | 499 | 416 | | **Total** | **1,198** | **1,008** | **914** | **Number of Cities Entered:** | Metric | As of June 30, 2025 | As of December 31, 2024 | As of June 30, 2024 | | :--- | :--- | :--- | :--- | | Number of Cities Entered | 48 | 39 | 33 | **Membership Count:** | Metric | As of June 30, 2025 | As of December 31, 2024 | As of June 30, 2024 | | :--- | :--- | :--- | :--- | | Membership Count (millions) | 30.1 | 24.5 | 19.4 | **Same-Store Sales Growth (SSSG):** | Period | Same-Store Sales Growth | | :--- | :--- | | Six months ended June 30, 2025 | -1.0% | | Year ended December 31, 2024 | 2.5% | | Six months ended December 31, 2024 | 1.6% | | Six months ended June 30, 2024 | 3.6% | - In the first half of 2025, first-tier cities achieved **positive same-store sales growth**, and markets entered before December 2022 collectively achieved **positive same-store sales growth**[10](index=10&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's operational and financial performance, strategic initiatives, and future outlook for the reporting period [H1 2025 Business Review](index=4&type=section&id=H1%202025%20Business%20Review) The company's total revenue increased by 27.0% year-on-year, driven by store network expansion, strong new market sales, and positive trends in existing markets, with non-first-tier cities contributing more to revenue and profitability significantly improving - The company is the exclusive master franchisee of Domino's Pizza in mainland China, Hong Kong, and Macau, operating **1,198 directly-owned stores** across **48 cities** in mainland China as of June 30, 2025[11](index=11&type=chunk) [Total Revenue and Market Performance](index=4&type=section&id=Total%20Revenue%20and%20Market%20Performance) Total revenue grew by 27.0% year-on-year, primarily driven by store network expansion, strong sales in new markets, and favorable trends in existing markets, with non-first-tier cities increasing their contribution to total revenue Total Revenue and Market Contribution **Total Revenue and Market Contribution:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 2,593.4 | 2,041.5 | 27.0% | | Beijing and Shanghai Revenue | 843.9 | 796.0 | 6.0% | | First-tier Cities Total Sales | 1,084.7 | N/A | 7.2% | | Non-first-tier Cities Revenue | 1,508.7 | 1,029.4 | 46.6% | **Non-first-tier Cities Revenue Contribution:** | Period | Contribution Percentage | | :--- | :--- | | H1 2025 | 58.2% | | H1 2024 | 50.4% | [Store Network Expansion and New Store Performance](index=4&type=section&id=Store%20Network%20Expansion%20and%20New%20Store%20Performance) The company opened 190 net new stores, reaching 1,198 total stores across 48 cities, with strong performance from new stores in growth markets and excellent cash investment payback periods - The company opened **190 net new stores** during the reporting period, reaching **1,198 stores** across **48 cities** in China as of June 30, 2025, with **9 new cities** entered[14](index=14&type=chunk) - In H1 2025, new stores in growth markets performed strongly, with **64 stores** across **15 markets** achieving an average daily sales of **RMB 47,102** and an average cash investment payback period of **11 months**[15](index=15&type=chunk) - As of Q2 2025, the company held **48 positions** in Domino's global top 50 for first 30-day sales, with the first Shenyang store setting a new global annual sales record[15](index=15&type=chunk) [Same-Store Sales Growth Analysis](index=5&type=section&id=Same-Store%20Sales%20Growth%20Analysis) Same-store sales growth for the period was -1.0%, primarily due to the negative impact of high-volume stores in new markets entered after December 2022 entering the same-store sales growth cycle, while existing markets and first-tier cities maintained positive growth - For the six months ended June 30, 2025, same-store sales growth decreased to **-1%**, mainly due to the negative impact of high-volume stores in new markets entered after December 2022 entering the same-store sales growth cycle[16](index=16&type=chunk) - Excluding the impact of stores in new markets entered after December 2022, the Group's same-store sales growth and first-tier market same-store sales growth still remained **positive**[16](index=16&type=chunk) [Membership Program and Customer Engagement](index=5&type=section&id=Membership%20Program%20and%20Customer%20Engagement) The membership program grew to 30.1 million members, a 55.2% year-on-year increase, with member contribution to revenue rising to 66.0%, demonstrating effective customer acquisition and deeper understanding of customer preferences Membership Program Data **Membership Program Data:** | Metric | As of June 30, 2025 | As of June 30, 2024 | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Membership Count (millions) | 30.1 | 19.4 | 55.2% | | Member Contribution to Total Revenue | 66.0% | 63.6% | +2.4 percentage points | - Over the past 12 months, **13.2 million new customers** placed their first orders, indicating effective new customer acquisition[17](index=17&type=chunk) [Profitability Performance](index=6&type=section&id=Profitability%20Performance) Store-level EBITDA and operating profit showed moderate growth with improved margins, while Adjusted EBITDA and Adjusted Net Profit significantly increased, reflecting enhanced company-wide efficiency and effectiveness Profitability Metrics **Profitability Metrics:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Store-level EBITDA | 502.8 | 393.9 | 27.7% | | Store-level EBITDA Margin | 19.4% | 19.3% | +0.1 percentage points | | Store-level Operating Profit | 379.2 | 296.2 | 28.0% | | Store-level Operating Profit Margin | 14.6% | 14.5% | +0.1 percentage points | | Adjusted EBITDA | 322.9 | 233.4 | 38.3% | | Adjusted EBITDA Margin | 12.4% | 11.4% | +1.0 percentage points | | Adjusted Net Profit | 91.4 | 50.9 | 79.6% | | Adjusted Net Profit Margin | 3.5% | 2.5% | +1.0 percentage points | [Business Outlook](index=6&type=section&id=Business%20Outlook) The company prioritizes store network expansion and growth, planning to open 300 new stores in 2025, while continuing its "deep cultivation" and "broadening" strategies in existing and new markets, alongside improving cost efficiency - The company plans to open **300 new stores** in 2025, with **190 net new stores** opened as of August 15, 2025, plus **43 additional net openings**, **27 under construction**, and **35 signed**, indicating strong progress towards the annual target[19](index=19&type=chunk) - The future strategy involves continuing the "deep cultivation" of existing markets and "broadening" into new markets for network expansion, alongside improving cost efficiency as the scale expands[19](index=19&type=chunk) [Events After Reporting Period](index=6&type=section&id=Events%20After%20Reporting%20Period) No significant events requiring disclosure occurred after the reporting period up to the date of this announcement - No significant events requiring disclosure occurred after the reporting period up to the date of this announcement[20](index=20&type=chunk) [Financial Performance Analysis](index=7&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed analysis of the company's revenue, cost structures, and profitability drivers for the reporting period [Revenue](index=7&type=section&id=Revenue) Total revenue increased by 27.0% year-on-year to RMB 2,593.4 million, driven by store network expansion and strong new market sales, despite a slight decrease in average daily sales per store Revenue Overview **Revenue Overview:** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,593,390 | 2,041,461 | 27.0% | **Revenue by Market:** | Market | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | First-tier City Market | 1,084,740 | 41.8 | 1,012,034 | 49.6 | | Non-first-tier City Market | 1,508,650 | 58.2 | 1,029,427 | 50.4 | | **Total Revenue** | **2,593,390** | **100.0** | **2,041,461** | **100.0** | **Average Daily Sales Per Store:** | Period | Average Daily Sales Per Store (RMB yuan) | | :--- | :--- | | H1 2025 | 12,915 | | H1 2024 | 13,515 | - First-tier city market revenue increased by **7.2%** year-on-year, while non-first-tier city market revenue increased by **46.6%**, with the latter's contribution to total revenue rising from **50.4% to 58.2%**[23](index=23&type=chunk)[24](index=24&type=chunk) - Average daily sales per store decreased by **4.4%** year-on-year, primarily due to the stabilization of sales from high-performing stores opened after December 2022[25](index=25&type=chunk) [Raw Materials and Consumables Costs](index=8&type=section&id=Raw%20Materials%20and%20Consumables%20Costs) Raw materials and consumables costs increased by 26.7% year-on-year to RMB 706.8 million, in line with revenue growth, maintaining a stable percentage of revenue Raw Materials and Consumables Costs **Raw Materials and Consumables Costs:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials and Consumables Costs | 706.8 | 557.8 | 26.7% | | Percentage of Revenue | Remained relatively stable | Remained relatively stable | N/A | [Staff Costs](index=8&type=section&id=Staff%20Costs) Staff costs increased by 23.2% year-on-year to RMB 877.4 million, mainly due to increased store-level employees from network expansion, with company-level staff costs decreasing as a percentage of revenue, reflecting economies of scale Staff Costs **Staff Costs:** | Metric | 2025 (RMB thousands) | 2025 as % of Total Revenue | 2024 (RMB thousands) | 2024 as % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Store-level Employee Cash-based Staff Costs | 718,430 | 27.7 | 558,845 | 27.4 | | Company-level Employee Cash-based Staff Costs | 133,458 | 5.1 | 113,084 | 5.5 | | Share-based Payments | 25,496 | 1.0 | 39,983 | 2.0 | | **Total Staff Costs** | **877,384** | **33.8** | **711,912** | **34.9** | - Store-level employee cash-based staff costs as a percentage of revenue increased from **27.4% to 27.7%**, primarily due to an increase in the average number of employees per store[32](index=32&type=chunk) - Company-level employee cash-based staff costs as a percentage of revenue decreased from **5.5% to 5.1%**, reflecting economies of scale[32](index=32&type=chunk) [Rental Expenses](index=9&type=section&id=Rental%20Expenses) Rental expenses increased by 28.5% year-on-year to RMB 259.2 million, primarily due to store network expansion, maintaining a stable percentage of revenue Rental Expenses **Rental Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Rental Expenses | 259.2 | 201.7 | 28.5% | | Percentage of Revenue | Remained relatively stable | Remained relatively stable | N/A | [Depreciation of Property, Plant and Equipment](index=9&type=section&id=Depreciation%20of%20Property%2C%20Plant%20and%20Equipment) Depreciation of property, plant and equipment increased by 25.6% year-on-year to RMB 123.9 million, related to increased equipment needs from store network expansion, maintaining a stable percentage of total revenue Depreciation of Property, Plant and Equipment **Depreciation of Property, Plant and Equipment:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 123.9 | 98.6 | 25.6% | | Percentage of Total Revenue | Remained relatively stable | Remained relatively stable | N/A | [Amortization of Intangible Assets](index=10&type=section&id=Amortization%20of%20Intangible%20Assets) Amortization of intangible assets increased by 6.7% year-on-year to RMB 28.7 million, mainly due to increased software purchases and store franchise fees, but decreased as a percentage of total revenue due to strong revenue growth Amortization of Intangible Assets **Amortization of Intangible Assets:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Amortization of Intangible Assets | 28.7 | 26.9 | 6.7% | | Percentage of Total Revenue | 1.1% | 1.3% | -0.2 percentage points | [Utilities Expenses](index=10&type=section&id=Utilities%20Expenses) Utilities expenses increased by 21.6% year-on-year to RMB 87.4 million, primarily due to store network expansion and revenue growth, but decreased as a percentage of total revenue due to revenue growth and energy-saving equipment installation Utilities Expenses **Utilities Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Utilities Expenses | 87.4 | 71.9 | 21.6% | | Percentage of Total Revenue | 3.4% | 3.5% | -0.1 percentage points | [Advertising and Promotion Expenses](index=10&type=section&id=Advertising%20and%20Promotion%20Expenses) Advertising and promotion expenses increased by 25.7% year-on-year to RMB 137.4 million, aimed at boosting revenue, but decreased slightly as a percentage of total revenue due to improved brand marketing efficiency Advertising and Promotion Expenses **Advertising and Promotion Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Advertising and Promotion Expenses | 137.4 | 109.3 | 25.7% | | Percentage of Total Revenue | 5.3% | 5.4% | -0.1 percentage points | [Store Operating and Maintenance Expenses](index=10&type=section&id=Store%20Operating%20and%20Maintenance%20Expenses) Store operating and maintenance expenses increased by 23.7% year-on-year to RMB 159.4 million, primarily due to store network expansion, maintaining a stable percentage of total revenue Store Operating and Maintenance Expenses **Store Operating and Maintenance Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Store Operating and Maintenance Expenses | 159.4 | 128.9 | 23.7% | | Percentage of Total Revenue | Remained relatively stable | Remained relatively stable | N/A | [Other Expenses](index=11&type=section&id=Other%20Expenses) Other expenses increased by 11.4% year-on-year to RMB 74.6 million, mainly due to increased telecommunications, IT, and professional service expenses, but decreased as a percentage of total revenue due to strong revenue growth Other Expenses **Other Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 74.6 | 66.9 | 11.4% | | Percentage of Total Revenue | 2.9% | 3.3% | -0.4 percentage points | [Net Finance Costs](index=11&type=section&id=Net%20Finance%20Costs) Net finance costs increased by 23.9% year-on-year to RMB 34.6 million, primarily due to increased interest expenses on lease liabilities, related to store network expansion Net Finance Costs **Net Finance Costs:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 34.6 | 27.9 | 23.9% | | Increase in Interest Expenses on Lease Liabilities | 5.3 | N/A | N/A | [Income Tax](index=11&type=section&id=Income%20Tax) Income tax expense increased from RMB 30.0 million to RMB 44.2 million Income Tax Expense **Income Tax Expense:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | | :--- | :--- | :--- | | Income Tax Expense | 44.2 | 30.0 | [Profit for the Period](index=11&type=section&id=Profit%20for%20the%20Period) Net profit for the period was RMB 65.9 million, a significant increase from RMB 10.9 million in the prior year Net Profit for the Period **Net Profit for the Period:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | | :--- | :--- | :--- | | Net Profit | 65.9 | 10.9 | [Non-IFRS Measures](index=12&type=section&id=Non-IFRS%20Measures) This section defines and reconciles non-IFRS financial measures, providing supplementary insights into the company's operational performance [Definition of Non-IFRS Measures](index=12&type=section&id=Definition%20of%20Non-IFRS%20Measures) This section defines Adjusted Net Profit, Adjusted EBITDA, Store-level EBITDA, and their respective margins as non-IFRS measures, emphasizing their role as supplementary information for evaluating operating performance - Non-IFRS measures (e.g., Adjusted Net Profit, Adjusted EBITDA, Store-level EBITDA) supplement IFRS statements by providing comparable operational performance information across different periods and companies[5](index=5&type=chunk)[43](index=43&type=chunk) - Store-level EBITDA is defined as store-level operating profit plus depreciation of property, plant and equipment and amortization of intangible assets at the store level[3](index=3&type=chunk)[44](index=44&type=chunk) - Adjusted Net Profit is defined as profit for the period plus share-based payments[6](index=6&type=chunk)[46](index=46&type=chunk) - Adjusted EBITDA is defined as Adjusted Net Profit plus depreciation and amortization (excluding depreciation of right-of-use assets), income tax expense, and net interest income and expenses[6](index=6&type=chunk)[47](index=47&type=chunk) [Reconciliation of Non-IFRS Measures](index=13&type=section&id=Reconciliation%20of%20Non-IFRS%20Measures) This section provides a reconciliation of non-IFRS financial measures to their closest IFRS equivalents, illustrating the calculation and growth of Adjusted Net Profit, Adjusted EBITDA, and Store-level EBITDA Reconciliation of Net Profit to Adjusted Net Profit and Adjusted EBITDA **Net Profit to Adjusted Net Profit and Adjusted EBITDA Reconciliation:** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 65,924 | 10,907 | | Add: Share-based Payments | 25,496 | 39,983 | | **Adjusted Net Profit** | **91,420** | **50,890** | | Adjusted Net Profit Margin | 3.5% | 2.5% | | Add: Depreciation and Amortization | 152,606 | 125,532 | | Income Tax Expense | 44,173 | 29,987 | | Net Interest Income and Expenses | 34,678 | 26,978 | | **Adjusted EBITDA** | **322,877** | **233,387** | | Adjusted EBITDA Margin | 12.4% | 11.4% | Reconciliation of Store-level Operating Profit to Store-level EBITDA **Store-level Operating Profit to Store-level EBITDA Reconciliation:** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Store-level Operating Profit | 379,188 | 296,155 | | Add: Depreciation of Property, Plant and Equipment – Store-level | 121,788 | 96,559 | | Amortization of Intangible Assets – Store-level | 1,842 | 1,188 | | **Store-level EBITDA** | **502,818** | **393,902** | | Store-level EBITDA Margin | 19.4% | 19.3% | [Liquidity and Capital Structure](index=14&type=section&id=Liquidity%20and%20Capital%20Structure) This section reviews the company's cash position, funding sources, borrowing activities, and overall financial health [Liquidity, Funding Sources, and Borrowings](index=14&type=section&id=Liquidity%2C%20Funding%20Sources%2C%20and%20Borrowings) Cash and bank balances slightly decreased, primarily due to capital expenditure for new stores, while net cash from operating activities saw a minor reduction, but the current ratio improved. The company successfully refinanced low-cost bank borrowings and maintains ample unused bank credit facilities Cash and Bank Balances **Cash and Bank Balances:** | Period | Cash and Bank Balances (RMB millions) | | :--- | :--- | | June 30, 2025 | 1,016.8 | | December 31, 2024 | 1,069.3 | | Change | -4.9% | Net Cash from Operating Activities **Net Cash from Operating Activities:** | Period | Net Cash from Operating Activities (RMB millions) | | :--- | :--- | | H1 2025 | 361.1 | | H1 2024 | 376.8 | Current Ratio **Current Ratio:** | Period | Current Ratio | | :--- | :--- | | June 30, 2025 | 0.97 | | December 31, 2024 | 0.9 | - The company fully repaid **RMB 200.0 million** in borrowings during H1 2025 and secured an equivalent amount of lower-cost bank borrowings with a three-year term[56](index=56&type=chunk) - As of June 30, 2025, the company had **RMB 300.0 million** in unused available bank credit facilities[56](index=56&type=chunk) [Treasury Policy](index=15&type=section&id=Treasury%20Policy) The company adopts a prudent financial management approach to its treasury policy, ensuring its liquidity structure consistently meets funding requirements - The Group adopts a prudent financial management approach to its treasury policy, ensuring that the liquidity structure of its assets, liabilities, and other commitments consistently meets funding requirements[57](index=57&type=chunk) [Gearing Ratio](index=15&type=section&id=Gearing%20Ratio) The gearing ratio decreased by 0.3 percentage points to 8.6%, primarily due to an increase in total equity driven by improved profitability Gearing Ratio **Gearing Ratio:** | Period | Gearing Ratio | | :--- | :--- | | June 30, 2025 | 8.6% | | December 31, 2024 | 8.9% | | Change | -0.3 percentage points | - The decrease in the gearing ratio is primarily due to the Group's improved profitability, which led to an increase in total equity[58](index=58&type=chunk) [Material Investments](index=15&type=section&id=Material%20Investments) The company made or held no material investments during the reporting period - As of June 30, 2025, the Group made or held no material investments[59](index=59&type=chunk) [Material Acquisitions and Disposals](index=16&type=section&id=Material%20Acquisitions%20and%20Disposals) The company had no material acquisitions or disposals during the reporting period - As of June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[60](index=60&type=chunk) [Pledged Assets](index=16&type=section&id=Pledged%20Assets) The company had no pledged assets at the end of the reporting period - As of June 30, 2025, the Group had no pledged assets[61](index=61&type=chunk) [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) The company had no contingent liabilities at the end of the reporting period - As of June 30, 2025, the Group had no contingent liabilities[62](index=62&type=chunk) [Foreign Exchange Risk](index=16&type=section&id=Foreign%20Exchange%20Risk) The company primarily operates in China, with transactions settled in RMB, resulting in no significant foreign currency risk, and has not entered into derivative instruments for hedging - The Group primarily operates in China, with most transactions settled in RMB, thus not exposed to significant foreign currency risk[63](index=63&type=chunk) - During the reporting period, the Group did not enter into any derivative instruments to hedge its foreign exchange risk[63](index=63&type=chunk) [Employees and Remuneration Policy](index=17&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 9,235 full-time and 23,715 part-time employees, primarily in mainland China, with total staff costs increasing, and a focus on talent attraction, retention, competitive compensation, systematic training, and "Best Employer" recognition Employee Count **Full-time Employee Count:** | Function | Employee Count as of June 30, 2025 | % of Total | | :--- | :--- | :--- | | Store Development and Operations | 8,761 | 94.9% | | Sales, Marketing and Product Development | 48 | 0.5% | | Supply Chain, Central Kitchen and Quality Control | 247 | 2.7% | | General Administration and Others | 179 | 1.9% | | **Total** | **9,235** | **100.0%** | **Part-time Employee Count:** | Period | Part-time Employee Count | | :--- | :--- | | June 30, 2025 | 23,715 | | December 31, 2024 | 19,640 | Total Staff Costs **Total Staff Costs:** | Period | Total Staff Costs (RMB millions) | | :--- | :--- | | H1 2025 | 877.4 | | H1 2024 | 711.9 | - The company provides employees with attractive remuneration (basic salary, discretionary bonuses, incentive bonuses), and group commercial insurance for riders[66](index=66&type=chunk) - The company has been recognized as a "Best Employer" by Mercer for **three consecutive years** in 2024[66](index=66&type=chunk) - The company offers continuous, systematic training to ensure employees possess necessary operational, management, and business skills, and provides standardized delivery safety training for riders[67](index=67&type=chunk) [Future Plans for Material Investments and Capital Assets](index=18&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) The company has no future plans for material investments and capital assets other than the store expansion plans disclosed in the business outlook - As of June 30, 2025, the Group had no other future plans for material investments and capital assets beyond those disclosed in "Management Discussion and Analysis – Business Outlook"[68](index=68&type=chunk) [Dividends](index=19&type=section&id=Dividends) The Board of Directors does not recommend the distribution of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the distribution of an interim dividend for the six months ended June 30, 2025[69](index=69&type=chunk) [Corporate Governance and Other Information](index=19&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's adherence to corporate governance standards, board committee activities, and other relevant disclosures [Compliance with Corporate Governance Code](index=19&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company has adopted and complied with all applicable code provisions of the HKEX Corporate Governance Code - The company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules[71](index=71&type=chunk)[72](index=72&type=chunk) [Compliance with Standard Securities Dealing Code for Directors](index=19&type=section&id=Compliance%20with%20Standard%20Securities%20Dealing%20Code%20for%20Directors) The company has adopted and complied with the Standard Code set out in Appendix C3 of the Listing Rules, with directors and relevant employees confirming compliance during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors and relevant employees have confirmed compliance with the Standard Code during the reporting period[73](index=73&type=chunk) [Audit and Risk Committee](index=19&type=section&id=Audit%20and%20Risk%20Committee) The Audit Committee has reviewed the interim condensed consolidated financial information and discussed accounting policies, practices, and internal control matters with the independent auditor and senior management - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information for the reporting period and met with the independent auditor, PricewaterhouseCoopers[74](index=74&type=chunk) - The Audit Committee also discussed matters concerning the company's accounting policies and practices, as well as internal controls, with members of the Group's senior management[74](index=74&type=chunk) [Other Board Committees](index=20&type=section&id=Other%20Board%20Committees) In addition to the Audit Committee, the company has established a Nomination Committee and a Remuneration Committee - In addition to the Audit and Risk Committee, the company has also established a Nomination Committee and a Remuneration Committee[75](index=75&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period, nor did it 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 securities listed on the Stock Exchange[76](index=76&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[76](index=76&type=chunk) [Material Litigation](index=20&type=section&id=Material%20Litigation) The company was not involved in any material litigation or arbitration during the reporting period, nor was it aware of any outstanding or threatened material litigation or claims - As of June 30, 2025, the company was not involved in any material litigation or arbitration[77](index=77&type=chunk) [Use of Proceeds](index=20&type=section&id=Use%20of%20Proceeds) The net proceeds from the global offering were approximately HK$499.9 million, with HK$263.8 million utilized as of June 30, 2025, leaving HK$236.1 million remaining. The Board has extended the expected timetable for the use of net proceeds to the end of 2026 Use of Net Proceeds **Use of Net Proceeds:** | Purpose | % of Net Proceeds | Net Proceeds (HK$ millions) | Unutilized as of Jan 1, 2025 (HK$ millions) | Utilized during Reporting Period (HK$ millions) | Unutilized as of June 30, 2025 (HK$ millions) | Updated Expected Full Utilization Timetable | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand Store Network | 90% | 450.0 | 337.6 | 107.6 | 230.0 | Before December 31, 2026 | | General Corporate Purposes | 10% | 49.9 | 6.1 | – | 6.1 | Before December 31, 2026 | | **Total** | **100%** | **499.9** | **343.7** | **107.6** | **236.1** | | - The Board has resolved to extend the expected timetable for the use of net proceeds from the end of 2025 to the end of 2026[78](index=78&type=chunk) [Financial Statements](index=21&type=section&id=Financial%20Statements) This section presents the company's consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of financial position, and condensed consolidated statement of cash flows [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=21&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section provides the consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, detailing key financial figures such as revenue, various costs, profit, and earnings per share Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) **Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary):** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 2,593,390 | 2,041,461 | | Raw Materials and Consumables Costs | (706,819) | (557,811) | | Staff Costs | (877,384) | (711,912) | | Depreciation of Right-of-Use Assets | (188,301) | (145,686) | | Depreciation of Property, Plant and Equipment | (123,886) | (98,612) | | Amortization of Intangible Assets | (28,720) | (26,920) | | Utilities Expenses | (87,438) | (71,931) | | Advertising and Promotion Expenses | (137,401) | (109,318) | | Store Operating and Maintenance Expenses | (159,368) | (128,881) | | Variable Lease Payments, Short-term Leases and Other Related Expenses | (70,870) | (56,054) | | Other Expenses | (74,561) | (66,935) | | Other Income | 7,327 | 9,036 | | Net Other Losses | (1,298) | (7,646) | | Net Finance Costs | (34,574) | (27,897) | | Profit Before Income Tax | 110,097 | 40,894 | | Income Tax Expense | (44,173) | (29,987) | | **Profit for the Period Attributable to Equity Holders of the Company** | **65,924** | **10,907** | | Other Comprehensive (Loss) / Income for the Period, Net of Tax | (1,940) | 3,916 | | **Total Comprehensive Income for the Period Attributable to Equity Holders of the Company** | **63,984** | **14,823** | | Basic Earnings Per Share (RMB yuan) | 0.50 | 0.08 | | Diluted Earnings Per Share (RMB yuan) | 0.49 | 0.08 | [Interim Condensed Consolidated Statement of Financial Position](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section provides the interim condensed consolidated statement of financial position as of June 30, 2025, detailing the composition of assets, liabilities, and equity Interim Condensed Consolidated Statement of Financial Position (Summary) **Interim Condensed Consolidated Statement of Financial Position (Summary):** | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 3,899,916 | 3,507,566 | | Total Current Assets | 1,333,484 | 1,368,560 | | **Total Assets** | **5,233,400** | **4,876,126** | | **Equity** | | | | Total Equity Attributable to Equity Holders of the Company | 2,336,078 | 2,243,232 | | **Liabilities** | | | | Total Non-current Liabilities | 1,515,966 | 1,115,896 | | Total Current Liabilities | 1,381,356 | 1,516,998 | | **Total Liabilities** | **2,897,322** | **2,632,894** | | **Total Equity and Liabilities** | **5,233,400** | **4,876,126** | [Interim Condensed Consolidated Statement of Cash Flows](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section provides the interim condensed consolidated statement of cash flows for the six months ended June 30, 2025, detailing cash flow activities from operating, investing, and financing Interim Condensed Consolidated Statement of Cash Flows (Summary) **Interim Condensed Consolidated Statement of Cash Flows (Summary):** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 361,146 | 376,809 | | Net Cash (Used in) / From Investing Activities | (189,784) | 299,070 | | Net Cash Used in Financing Activities | (222,191) | (175,093) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (50,829) | 500,786 | | Cash and Cash Equivalents at Beginning of Period | 1,069,102 | 587,038 | | Cash and Cash Equivalents at End of Period | 1,016,636 | 1,089,066 | [Notes to the Financial Statements](index=25&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanatory notes supporting the interim condensed consolidated financial statements, covering general information, basis of preparation, new standards, and specific account breakdowns [General Information](index=25&type=section&id=General%20Information) The company was incorporated in the British Virgin Islands, primarily operating Domino's Pizza fast-food chains in mainland China, Hong Kong, and Macau under an exclusive master franchise agreement valid until June 1, 2027 - Dash Brands Ltd. was incorporated in the British Virgin Islands on April 30, 2008, primarily operating Domino's Pizza fast-food chains in mainland China, Hong Kong, and Macau[83](index=83&type=chunk) - The Group is the master franchisee for Domino's Pizza in these regions, with the master franchise agreement valid until **June 1, 2027**, and renewable for two 10-year terms[83](index=83&type=chunk) [Basis of Preparation](index=25&type=section&id=Basis%20of%20Preparation) The financial information is prepared in accordance with IAS 34 and based on a going concern assumption, with directors confident in the company's ability to meet liabilities for the next 12 months - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[85](index=85&type=chunk) - Despite recording net current liabilities of approximately **RMB 47,872,000** as of June 30, 2025, the directors assess that the Group has sufficient funds to meet its liabilities and continue as a going concern for at least the next twelve months[86](index=86&type=chunk) [New Standards and Interpretations](index=26&type=section&id=New%20Standards%20and%20Interpretations) Certain new and amended standards were adopted during the reporting period without changing accounting policies, and new standards not yet effective are not expected to have a significant impact on financial performance or position - Certain amended standards became applicable during the reporting period, and the Group did not change its accounting policies as a result of adopting these standards[89](index=89&type=chunk) - The Group has begun assessing the impact of new or amended standards not yet effective, with preliminary assessments indicating no significant impact on the Group's financial performance and position[91](index=91&type=chunk) [Revenue and Segment Information](index=26&type=section&id=Revenue%20and%20Segment%20Information) The company operates primarily as a fast-food chain, managed as a single reporting operating segment, with all revenue derived from mainland China, and provides information on contract liabilities and geographical distribution of non-current assets - The directors consider the Group to be managed as a **single reporting operating segment**[93](index=93&type=chunk) - For the six months ended June 30, 2025, all of the Group's revenue was derived from mainland China[94](index=94&type=chunk) Contract Liabilities **Contract Liabilities:** | Period | Contract Liabilities (RMB thousands) | | :--- | :--- | | June 30, 2025 | 56,756 | | December 31, 2024 | 63,010 | [Other Expenses](index=27&type=section&id=Other%20Expenses) This section details the composition of other expenses, including professional services, auditor's remuneration, telecommunications and IT, travel, and other miscellaneous fees Other Expenses Details **Other Expenses Details:** | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Professional Service Expenses | 13,656 | 11,382 | | Auditor's Remuneration | 3,395 | 2,899 | | Telecommunications and IT Related Expenses | 22,548 | 21,490 | | Travel and Related Expenses | 14,540 | 18,760 | | Others | 20,422 | 12,404 | | **Total** | **74,561** | **66,935** | [Staff Costs](index=28&type=section&id=Staff%20Costs) This section details the composition of staff costs, including salaries, wages and bonuses, pension scheme contributions, housing provident fund, medical and other social insurance, other benefits, and share-based payments Staff Costs Details **Staff Costs Details:** | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, Wages and Bonuses | 725,065 | 571,831 | | Pension Scheme Contributions | 59,364 | 46,373 | | Housing Provident Fund, Medical Insurance and Other Social Insurance | 57,902 | 46,252 | | Other Benefits | 9,557 | 7,473 | | Total Salary-based Expenses | 851,888 | 671,929 | | Share-based Payments | 25,496 | 39,983 | | **Total Staff Costs** | **877,384** | **711,912** | [Net Finance Costs](index=28&type=section&id=Net%20Finance%20Costs) This section details the composition of net finance costs, including bank cash interest income, interest expenses (bank borrowings, lease liabilities, long-term payables), and net foreign exchange gains/losses from financing activities Net Finance Costs Details **Net Finance Costs Details:** | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Cash Interest Income | 8,940 | 11,768 | | Interest Expenses | (43,618) | (38,746) | | – Bank Borrowings | (3,842) | (4,651) | | – Lease Liabilities | (38,659) | (33,315) | | – Long-term Payables | (1,117) | (780) | | Net Foreign Exchange Gains / (Losses) from Financing Activities | 104 | (919) | | **Total** | **(34,574)** | **(27,897)** | [Income Tax Expense](index=28&type=section&id=Income%20Tax%20Expense) This section details the composition of income tax expense, including current and deferred income tax, and explains applicable tax rates and preferential policies across different regions Income Tax Expense Details **Income Tax Expense Details:** | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax – Mainland China Corporate Income Tax | 58,846 | 54,827 | | Deferred Income Tax | (14,673) | (24,840) | | **Income Tax Expense** | **44,173** | **29,987** | - Subsidiary companies incorporated in mainland China are subject to a corporate income tax rate of **25%**, with some qualifying as small and micro-enterprises enjoying a **5% preferential tax rate**, and one subsidiary enjoying a **15% preferential tax rate**[104](index=104&type=chunk) [Earnings Per Share](index=29&type=section&id=Earnings%20Per%20Share) This section provides the calculation methods and specific data for basic and diluted earnings per share, showing an increase in basic earnings per share from RMB 0.08 to RMB 0.50 Basic Earnings Per Share **Basic Earnings Per Share:** | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB thousands) | 65,924 | 10,907 | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 130,778 | 130,153 | | **Basic Earnings Per Share (RMB yuan)** | **0.50** | **0.08** | Diluted Earnings Per Share **Diluted Earnings Per Share:** | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB thousands) | 65,924 | 10,907 | | Weighted Average Number of Ordinary Shares for Diluted EPS (thousands) | 134,292 | 131,127 | | **Diluted Earnings Per Share (RMB yuan)** | **0.49** | **0.08** | [Dividends](index=30&type=section&id=Dividends) The company neither paid nor declared any dividends during the reporting period - For the six months ended June 30, 2025, the company neither paid nor declared any dividends[109](index=109&type=chunk) [Trade Receivables](index=30&type=section&id=Trade%20Receivables) Total trade receivables amounted to RMB 16.382 million, primarily from third parties and aged within 30 days, with carrying amounts approximating fair values Trade Receivables Aging **Trade Receivables Aging:** | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 16,752 | 13,255 | | Less: Impairment Provision for Trade Receivables | (370) | (293) | | **Total** | **16,382** | **12,962** | [Trade Payables](index=31&type=section&id=Trade%20Payables) Total trade payables amounted to RMB 240.507 million, primarily aged within 3 months, with carrying amounts approximating fair values Trade Payables Aging Analysis **Trade Payables Aging Analysis:** | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | – Within 3 months | 240,463 | 248,591 | | – 4 to 6 months | 7 | 20 | | – Over 6 months | 37 | 34 | | **Total** | **240,507** | **248,645** | [Accrued Expenses and Other Payables](index=31&type=section&id=Accrued%20Expenses%20and%20Other%20Payables) Total accrued expenses and other payables amounted to RMB 768.541 million, including non-current restoration cost provisions and current wages and benefits, payables for property, plant and equipment, and accrued expenses Accrued Expenses and Other Payables Details **Accrued Expenses and Other Payables Details:** | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current** | | | | Restoration Cost Provision | 49,167 | 36,939 | | **Current** | | | | Wages and Benefits Payables | 204,068 | 241,025 | | Payables for Property, Plant and Equipment and Intangible Assets | 201,829 | 126,163 | | Accrued Expenses | 273,192 | 264,066 | | Others | 40,285 | 44,797 | | **Total Accrued Expenses and Other Payables** | **768,541** | **712,990** | [Other Information](index=32&type=section&id=Other%20Information) This section covers the publication of interim results announcements and reports, along with other relevant disclosures [Publication of Interim Results Announcement and Interim Report](index=32&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders in due course - This interim results announcement has been published on the HKEX website www.hkexnews.hk and the company's website www.dpcdash.com[114](index=114&type=chunk) - The Group's interim report for the six months ended June 30, 2025, will be dispatched to shareholders in due course[114](index=114&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2025, was approximately HKD 10,904,000, representing a 79% increase from HKD 6,094,000 for the same period in 2024[6] - The profit attributable to the owners of the company for the six months ended June 30, 2025, was approximately HKD 219,000, a significant recovery from a loss of HKD 19,558,000 in the same period of 2024[6] - Basic earnings per share for the six months ended June 30, 2025, was approximately HKD 0.23, compared to a basic loss per share of HKD 20.37 for the same period in 2024[6] - The net profit for the period was approximately HKD 219,000, a turnaround from a net loss of HKD 19,558,000 in the previous year[42] - The company recorded a profit of approximately HKD 219,000 for the period, compared to a loss of approximately HKD 19,558,000 in the same period last year[50] Assets and Liabilities - Total assets as of June 30, 2025, amounted to HKD 209,743,000, an increase from HKD 164,423,000 as of December 31, 2024[9] - The total equity attributable to the owners of the company as of June 30, 2025, was HKD 122,483,000, slightly up from HKD 122,264,000 as of December 31, 2024[9] - The company reported trade payables of HKD 54,130,000 as of June 30, 2025, an increase from HKD 33,973,000 as of December 31, 2024[31] - Unsecured borrowings increased to approximately HKD 32,116,000 from approximately HKD 7,035,000 as of December 31, 2024, with a debt-to-equity ratio of approximately 26.2%[58] Revenue Sources - Brokerage services generated commission and service fees of HKD 2,520,000, up from HKD 621,000, marking a significant increase of 305.0%[19] - Corporate finance advisory service fees rose to HKD 2,150,000, compared to HKD 1,450,000, reflecting an increase of 48.3%[19] - Interest income from securities and IPO financing was HKD 5,180,000, an increase of 68.4% from HKD 3,074,000 in the previous year[19] - Other income totaled HKD 2,355,000, which is a 109.5% increase from HKD 1,066,000 in the prior period[21] Cash Flow - Operating cash flow for the six months ended June 30, 2025, was a net outflow of HKD 27,247,000, compared to a net outflow of HKD 633,000 for the same period in 2024[11] - The company reported a net cash inflow from financing activities of HKD 24,498,000 for the six months ended June 30, 2025, compared to a net outflow of HKD 916,000 in the same period of 2024[11] Dividends - The company did not recommend any dividend for the six months ended June 30, 2025, consistent with the previous year[6] - The company did not recommend any dividend for the six months ended June 30, 2025, consistent with the previous year[24] Accounting Policies - The company has maintained consistent accounting policies and methods in preparing the financial statements, ensuring comparability with the previous year[14] - The company is currently evaluating the impact of new accounting standards that have been issued but are not yet effective, although no significant impact has been determined at this time[15] Management and Governance - The company has adhered to the corporate governance code, except for the separation of the roles of Chairman and CEO as per C.2.1, which remains combined under Mr. Pan since 2007[83] - The board consists of 6 members, including 3 executive directors and 3 independent non-executive directors, meeting GEM listing rules requirements[84] - The audit committee, chaired by an independent non-executive director, has reviewed the interim results and confirmed compliance with applicable accounting standards and GEM listing rules[85] Investments and Future Outlook - The group has no plans for significant investments or capital asset increases as of the report date[63] - The board maintains a cautious yet optimistic outlook for Original Growth SP3, expecting continued improvement in investment returns[61] - The investment strategy involves diversifying investments across various asset classes and regions to achieve stable returns[60] - The group will closely monitor market changes and manage its investment portfolio actively to mitigate potential risks[60]

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。 （於百慕達註冊成立之有限公司） （股份代號：1193） 截至二零二五年六月三十日止六個月的中期業績 華潤燃氣錄得中期主要業績指標如下： 二零二五年 二零二四年 上半年 上半年 增加╱（減少） 營收（百萬港元） 49,785 52,076 (4.4%) 本公司擁有人應佔溢利（百萬港元） 2,403 3,457 (30.5%) 每股基本盈利（港元） 1.05 1.52 (30.9%) 燃氣總銷量（百萬立方米） 20,755 20,901 (0.7%) 累計已接駁客戶總數（百萬） 61.37 58.84 4.3% 華潤燃氣控股有限公司（「本公司」或「華潤燃氣」）董事（「董事」）會（「董事會」）欣 然宣佈本公司及其附屬公司（「本集團」）截至二零二五年六月三十日止六個月（「期 間」）的未經審核綜合業績連同二零二四年的比較數字如下： 1 綜合損益及其他綜合收益表 截至二零二五年六月三十日止六個月 | | | 截至六 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group's total net revenue grew 6.1% to HKD 14.639 billion, but adjusted EBITDA declined 5.1% to HKD 1.646 billion, and loss attributable to owners expanded to HKD 182 million Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | 2025 (Million HKD) | 2024 (Million HKD) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Group Total Net Revenue | 14,639 | 13,801 | 6.1% | | Gaming Net Revenue | 13,628 | 12,897 | 5.7% | | Adjusted EBITDA | 1,646 | 1,734 | (5.1%) | | Loss Attributable to Owners of the Company | (182) | (162) | NM | | Basic Loss Per Share (HK cents) | (2.6) | (2.3) | NM | [Interim Dividend](index=2&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare an **interim dividend** for the six months ended **June 30, 2025** (2024: nil)[5](index=5&type=chunk) [Operations Summary](index=2&type=section&id=Operations%20Summary) SJM Resorts' gaming net revenue grew to HKD 13.628 billion, Grand Lisboa Palace Resort's total revenue increased 22.7%, while Grand Lisboa's total revenue slightly declined - SJM Resorts' gaming net revenue for the first half of 2025 was **HKD 13.628 billion**, an increase from **HKD 12.897 billion** in the first half of 2024[6](index=6&type=chunk) - SJM Resorts accounted for **12.9%** of Macau's gross gaming revenue, with mass market table gross gaming revenue at **16.1%** and VIP gross gaming revenue at **3.7%**[6](index=6&type=chunk) Key Property Operating Data (H1 2025 vs H1 2024) | Property | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | :--- | | **Grand Lisboa Palace Resort** | Gross Revenue | 3.626 billion | 2.956 billion | +22.7% | | | Adjusted Property EBITDA | 82 million | 192 million | -57.3% | | | Occupancy Rate | 98.1% | 94.8% | +3.3 percentage points | | | Average Daily Room Rate | 1,221 | 1,155 | +5.7% | | **Grand Lisboa** | Gross Revenue | 3.760 billion | 3.800 billion | -1.1% | | | Adjusted Property EBITDA | 863 million | 1.010 billion | -14.6% | | | Occupancy Rate | 98.6% | 98.5% | +0.1 percentage points | | | Average Daily Room Rate | 1,398 | 1,226 | +14.0% | - As of June 30, 2025, the Group's cash, bank balances, short-term bank deposits, and pledged bank deposits totaled **HKD 3.335 billion**, with debt at **HKD 27.257 billion**[6](index=6&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section provides the condensed consolidated statements of profit or loss and financial position, detailing the Group's financial performance and position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group reported total revenue of HKD 14.639 billion, with a loss for the period of HKD 138 million and basic and diluted loss per share of 2.6 HK cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD) | 2024 (Million HKD) | | :--- | :--- | :--- | | Revenue from Gaming, Hotel, F&B, Retail, Leasing and Related Services | 14,639.3 | 13,801.3 | | Gaming Revenue | 13,627.5 | 12,897.0 | | Special Gaming Tax and Special Levy | (5,928.1) | (5,516.7) | | Hotel, F&B, Retail, Leasing and Related Services Income | 1,011.8 | 904.3 | | Marketing and Promotion Expenses | (2,634.9) | (2,422.9) | | Operating and Administrative Expenses | (5,098.8) | (4,772.8) | | Finance Costs | (847.1) | (975.8) | | Loss Before Tax | (107.1) | (85.2) | | Loss for the Period | (138.1) | (108.6) | | Loss Attributable to Owners of the Company | (182.2) | (162.4) | | Basic Loss Per Share (HK cents) | (2.6) | (2.3) | | Diluted Loss Per Share (HK cents) | (2.6) | (2.3) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group reported total non-current assets of HKD 45.306 billion, net current liabilities of HKD 10.359 billion, and total equity of HKD 14.024 billion Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property and Equipment | 37,839.1 | 37,566.4 | | Gaming Concession Rights | 1,906.6 | 2,097.7 | | Total Non-Current Assets | 45,306.4 | 45,463.4 | | **Current Assets** | | | | Bank Balances and Cash | 2,103.1 | 1,992.9 | | Total Current Assets | 3,634.4 | 3,261.5 | | **Current Liabilities** | | | | Trade and Other Payables | 4,641.8 | 4,743.5 | | Bank Loans Due Within One Year | 3,424.0 | 1,729.5 | | Unsecured Notes | 5,492.5 | — | | Total Current Liabilities | 13,993.9 | 6,933.4 | | Net Current Liabilities | (10,359.5) | (3,671.9) | | **Non-Current Liabilities** | | | | Bank Loans Due After One Year | 10,891.7 | 11,769.7 | | Unsecured Notes | 3,799.8 | 9,349.9 | | Total Non-Current Liabilities | 20,922.2 | 27,615.5 | | Net Assets | 14,024.7 | 14,176.0 | | Equity Attributable to Owners of the Company | 13,728.7 | 13,924.1 | | Total Equity | 14,024.7 | 14,176.0 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering accounting policies, segment performance, and financial details [General Information and Basis of Preparation](index=6&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Company, a Hong Kong-registered investment holding company, presents its HKD financial statements in accordance with HKAS 34 and Listing Rules, consistent with prior accounting policies - The Company is a public limited company registered in **Hong Kong**, primarily engaged in the development and operation of casinos and related facilities, hotels, food and beverage, retail, leasing, and related services in **Macau**[10](index=10&type=chunk) - The condensed consolidated financial statements are presented in **Hong Kong Dollars (HKD)** and prepared in accordance with **Hong Kong Accounting Standard 34** and **Appendix D2** of the Listing Rules of The Stock Exchange of Hong Kong Limited[11](index=11&type=chunk) - The accounting policies for the six months ended **June 30, 2025**, are consistent with those applied in the annual consolidated financial statements for the year ended **December 31, 2024**, with no significant impact on financial position or performance from the application of revised Hong Kong Financial Reporting Standards[13](index=13&type=chunk)[14](index=14&type=chunk) [Operating Segments](index=7&type=section&id=Operating%20Segments) The Group operates in two segments: gaming, with revenue of HKD 13.628 billion, and hotel/related businesses, reporting HKD 1.0118 billion in external sales - The Group is currently divided into two reporting segments: **Gaming Operations** (operating casinos and related facilities) and **Hotel, Food and Beverage, Retail, and Leasing Operations** (operating hotels, food and beverage, retail, leasing, and related services)[15](index=15&type=chunk) Segment Revenue and Results Analysis (For the Six Months Ended June 30) | Segment | 2025 Revenue (Million HKD) | 2024 Revenue (Million HKD) | 2025 Results (Million HKD) | 2024 Results (Million HKD) | | :--- | :--- | :--- | :--- | :--- | | Gaming Operations | 13,627.5 | 12,897.0 | 120.7 | 78.6 | | Hotel, F&B, Retail & Leasing Operations (External Sales) | 1,011.8 | 904.3 | (169.3) | (103.7) | | Total (from Customer Contracts and Operating Leases) | 14,639.3 | 13,801.3 | (48.6) | (25.1) | Segment Assets and Liabilities Analysis (As of June 30, 2025) | Segment | 2025 Assets (Million HKD) | 2024 Assets (Million HKD) | 2025 Liabilities (Million HKD) | 2024 Liabilities (Million HKD) | | :--- | :--- | :--- | :--- | :--- | | Gaming Operations | 35,398.2 | 35,117.6 | 32,887.7 | 32,483.8 | | Hotel, F&B, Retail & Leasing Operations | 10,502.6 | 10,460.4 | 1,399.3 | 1,439.3 | | Total Group | 48,940.8 | 48,724.9 | 34,916.1 | 34,548.9 | [Gaming Revenue](index=11&type=section&id=Gaming%20Revenue) Total gross gaming revenue reached HKD 14.8206 billion, with non-rolling chip gaming revenue as the largest component, resulting in net gaming revenue of HKD 13.6275 billion Composition of Gaming Revenue (For the Six Months Ended June 30) | Item | 2025 (Million HKD) | 2024 (Million HKD) | | :--- | :--- | :--- | | Rolling Chip Gross Gaming Revenue | 1,099.4 | 1,177.7 | | Non-Rolling Chip Gross Gaming Revenue | 12,302.0 | 11,489.6 | | Electronic Gaming Gross Revenue | 1,419.2 | 1,124.0 | | **Gross Gaming Revenue** | **14,820.6** | **13,791.3** | | Less: Commissions and Incentives | (1,193.1) | (894.3) | | **Net Gaming Revenue** | **13,627.5** | **12,897.0** | [Items Deducted From/Credited to Loss Before Tax](index=12&type=section&id=Items%20Deducted%20From%2FCredited%20to%20Loss%20Before%20Tax) Total staff costs were HKD 3.3212 billion, with depreciation of property and equipment at HKD 786.9 million, and bank interest income at HKD 32.1 million Items Deducted From/Credited to Loss Before Tax (For the Six Months Ended June 30) | Item | 2025 (Million HKD) | 2024 (Million HKD) | | :--- | :--- | :--- | | Total Staff Costs | 3,321.2 | 3,132.4 | | Amortisation of Gaming Concession Rights | 127.0 | 130.7 | | Depreciation of Property and Equipment | 786.9 | 742.5 | | Depreciation of Right-of-Use Assets | 70.3 | 60.3 | | Bank Interest Income | 32.1 | 59.5 | | Dredging Service Income | 81.8 | 99.3 | [Taxation](index=13&type=section&id=Taxation) Total tax for the period was HKD 31 million, with SJM Resorts exempt from complementary tax on gaming income, but shareholders liable for a special complementary tax Composition of Taxation (For the Six Months Ended June 30) | Item | 2025 (Million HKD) | 2024 (Million HKD) | | :--- | :--- | :--- | | Current Tax—Macau SAR Complementary Tax | 25.2 | 23.4 | | Deferred Tax | 5.8 | — | | **Total** | **31.0** | **23.4** | - SJM Resorts has been exempted from complementary tax on income derived from gaming operations for the period from **January 1, 2023, to December 31, 2027**[26](index=26&type=chunk) - SJM Resorts' shareholders are required to pay a special complementary tax at the applicable rate on gross gaming revenue for the period from **January 1, 2023, to December 31, 2025**[26](index=26&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare an **interim dividend** for the six months ended **June 30, 2025** (2024: nil)[28](index=28&type=chunk) [Loss Per Share](index=14&type=section&id=Loss%20Per%20Share) Loss attributable to owners was HKD 182.2 million, resulting in basic and diluted loss per share of 2.6 HK cents, an increase from 2.3 HK cents Loss Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/HK cents) | 2024 (Million HKD/HK cents) | | :--- | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share (Loss attributable to owners of the Company) | (182.2) | (162.4) | | Weighted Average Number of Ordinary Shares | 7,101,805,366 | 7,101,805,366 | | Basic Loss Per Share | (2.6) HK cents | (2.3) HK cents | | Diluted Loss Per Share | (2.6) HK cents | (2.3) HK cents | [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables increased to HKD 1.0913 billion, with net advances to gaming customers rising to HKD 215.2 million Trade and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | Advances to Gaming Customers (Net) | 215.2 | 153.9 | | Lease Receivables | 270.4 | 213.4 | | Prepayments | 280.0 | 231.8 | | Other Miscellaneous Receivables | 325.7 | 268.5 | | **Total** | **1,091.3** | **867.6** | - As of **June 30, 2025**, the gross carrying amount of advances to gaming customers of **HKD 85 million** was overdue, of which **HKD 68.4 million** was overdue by **90 days or more** but still considered recoverable[35](index=35&type=chunk) Aging Analysis of Advances to Gaming Customers (As of End of Reporting Period) | Aging | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | 0 to 30 Days | 87.9 | 30.0 | | 31 to 60 Days | 45.8 | 99.3 | | 61 to 90 Days | 13.1 | 16.1 | | Over 90 Days | 68.4 | 8.5 | | **Total** | **215.2** | **153.9** | [Trade and Other Payables](index=17&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased to HKD 6.6412 billion, including HKD 924 million for special gaming tax and HKD 2.3375 billion for gaming concession Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | Trade Payables | 331.3 | 395.6 | | Special Gaming Tax Payable | 924.0 | 955.1 | | Chips in Circulation | 376.9 | 386.7 | | Chips and Deposits Held for Gaming Customers and Promoters | 584.2 | 502.4 | | Amounts Payable for Gaming Concession | 2,337.5 | 2,493.4 | | Other Miscellaneous Payables and Accrued Expenses | 887.7 | 813.2 | | **Total** | **6,641.2** | **7,022.2** | | Less: Non-Current Portion | (1,999.4) | (2,278.7) | | **Current Portion** | **4,641.8** | **4,743.5** | Aging Analysis of Trade Payables (As of End of Reporting Period) | Aging | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | 0 to 30 Days | 306.0 | 363.1 | | 31 to 60 Days | 22.4 | 29.3 | | 61 to 90 Days | 1.9 | 2.5 | | Over 90 Days | 1.0 | 0.7 | | **Total** | **331.3** | **395.6** | - The average credit period for trade payables is **90 days**, and the Group has financial risk management policies in place to ensure all payables are settled within credit terms[39](index=39&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) The Group's total net revenue grew 6.1% to HKD 14.639 billion, driven by gaming, but adjusted EBITDA declined 5.1%, with varied property performance [Group Operating Results](index=19&type=section&id=Group%20Operating%20Results) Total net revenue grew 6.1% to HKD 14.639 billion, but adjusted EBITDA decreased 5.1% to HKD 1.646 billion, with the margin declining to 11.2% Group Operating Results (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD) | 2024 (Million HKD) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Total Net Revenue | 14,639 | 13,801 | 6.1% | | Gaming Net Revenue | 13,628 | 12,897 | 5.7% | | Loss Attributable to Owners of the Company | (182) | (162) | NM | | Adjusted EBITDA | 1,646 | 1,734 | (5.1%) | | Adjusted EBITDA Margin | 11.2% | 12.6% | (1.4) percentage points | Composition of Gross Gaming Revenue (For the Six Months Ended June 30) | Item | 2025 (Million HKD) | 2024 (Million HKD) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Rolling Chip Gross Gaming Revenue | 1,100 | 1,178 | (6.6%) | | Non-Rolling Chip Gross Gaming Revenue | 12,302 | 11,489 | 7.1% | | Electronic Gaming Gross Revenue | 1,419 | 1,124 | 26.2% | | **Gross Gaming Revenue** | **14,821** | **13,791** | **7.5%** | | Less: Commissions and Incentives | (1,193) | (894) | 33.4% | | **Gaming Net Revenue** | **13,628** | **12,897** | **5.7%** | [Property Statistics](index=20&type=section&id=Property%20Statistics) This section details operating data for Grand Lisboa Palace Resort, Grand Lisboa, other self-promoted casinos, and satellite casinos, including revenue and EBITDA [Grand Lisboa Palace Resort Statistics](index=20&type=section&id=Grand%20Lisboa%20Palace%20Resort%20Statistics) Grand Lisboa Palace Resort's total revenue grew 22.7% to HKD 3.626 billion, but adjusted property EBITDA declined 57.3% to HKD 82 million, despite improved occupancy Grand Lisboa Palace Resort Statistics (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/%) | 2024 (Million HKD/%) | Change (Million HKD/percentage points) | | :--- | :--- | :--- | :--- | | Total Revenue | 3,626 | 2,956 | +670 (+22.7%) | | Casino (Gross Gaming Revenue) | 2,936 | 2,325 | +611 (+26.3%) | | Adjusted Property EBITDA | 82 | 192 | (110) (-57.3%) | | Rolling Chip Turnover | 25,326 | 18,524 | +6,802 (+36.7%) | | Non-Rolling Chip Drop | 9,821 | 7,892 | +1,929 (+24.4%) | | Electronic Gaming Win | 12,808 | 9,245 | +3,563 (+38.5%) | | Hotel Occupancy Rate | 98.1% | 94.8% | +3.3 percentage points | | Average Daily Room Rate | HKD 1,221 | HKD 1,155 | +HKD 66 (+5.7%) | [Grand Lisboa Statistics](index=21&type=section&id=Grand%20Lisboa%20Statistics) Grand Lisboa's total revenue slightly declined 1.1% to HKD 3.760 billion, with adjusted property EBITDA down 14.6% to HKD 863 million, despite strong hotel performance Grand Lisboa Statistics (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/%) | 2024 (Million HKD/%) | Change (Million HKD/percentage points) | | :--- | :--- | :--- | :--- | | Total Revenue | 3,760 | 3,800 | (40) (-1.1%) | | Casino (Gross Gaming Revenue) | 3,582 | 3,660 | (78) (-2.1%) | | Adjusted Property EBITDA | 863 | 1,010 | (147) (-14.6%) | | Rolling Chip Turnover | 11,021 | 14,334 | (3,313) (-23.1%) | | Non-Rolling Chip Drop | 14,916 | 14,223 | +693 (+4.9%) | | Electronic Gaming Win | 7,772 | 4,848 | +2,924 (+60.3%) | | Hotel Occupancy Rate | 98.6% | 98.5% | +0.1 percentage points | | Average Daily Room Rate | HKD 1,398 | HKD 1,226 | +HKD 172 (+14.0%) | [Other Self-Promoted Casinos, Artyzen Grand Lapa Macau, Kam Pek Paradise Casino and Sofitel Macau At Ponte 16 Statistics](index=22&type=section&id=Other%20Self-Promoted%20Casinos%2C%20Artyzen%20Grand%20Lapa%20Macau%2C%20Kam%20Pek%20Paradise%20Casino%20and%20Sofitel%20Macau%20At%20Ponte%2016%20Statistics) Other self-promoted casinos and hotels saw total revenue grow 5.4% to HKD 2.799 billion, with adjusted property EBITDA up 0.3% to HKD 651 million, and electronic gaming win up 42.9% Other Self-Promoted Casinos and Hotels Statistics (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/%) | 2024 (Million HKD/%) | Change (Million HKD/percentage points) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,799 | 2,655 | +144 (+5.4%) | | Casino (Gross Gaming Revenue) | 2,656 | 2,521 | +135 (+5.4%) | | Adjusted Property EBITDA | 651 | 649 | +2 (+0.3%) | | Non-Rolling Chip Drop | 16,164 | 16,501 | (337) (-2.0%) | | Electronic Gaming Win | 200 | 140 | +60 (+42.9%) | | Artyzen Grand Lapa Macau Average Daily Room Rate | HKD 245 | HKD 210 | +HKD 35 (+16.7%) | | Sofitel Macau At Ponte 16 Occupancy Rate | 86.3% | 84.9% | +1.4 percentage points | [Satellite Casinos Statistics](index=23&type=section&id=Satellite%20Casinos%20Statistics) Satellite casinos' gross gaming revenue grew 6.8% to HKD 5.647 billion, with adjusted property EBITDA significantly improving to a profit of HKD 153 million Satellite Casinos Statistics (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/%) | 2024 (Million HKD/%) | Change (Million HKD/%) | | :--- | :--- | :--- | :--- | | Casino Revenue (Gross Gaming Revenue) | 5,647 | 5,285 | +362 (+6.8%) | | Adjusted Property EBITDA | 153 | (29) | +182 (NM) | - SJM Resorts operated **nine satellite casinos** as of **June 30, 2025**, with Casino Grandview ceasing operations by the end of **July 2025**[48](index=48&type=chunk) [Recent Developments and Outlook](index=24&type=section&id=Recent%20Developments%20and%20Outlook) The Group is pursuing strategic expansions in Hengqin, restructuring satellite casinos, acquiring Grand Lisboa Hotel property, and developing F&B, MICE, sports, and cultural tourism facilities [Hengqin Strategic Expansion](index=24&type=section&id=Hengqin%20Strategic%20Expansion) The Group acquired a 19,781 sqm property in Hengqin for RMB 724 million to develop a 250-room three-star hotel, targeting mid-range accommodation demand - The Group acquired approximately **19,781 square meters** of property at Hengqin "Shun Tak Port Business Centre" for approximately **RMB 724 million**[49](index=49&type=chunk) - The property will be converted into a **three-star hotel** with approximately **250 rooms**, expected to be completed within approximately **24 months** after obtaining construction permits[49](index=49&type=chunk) - This initiative aims to capture the rising demand for **mid-range accommodation** and achieve synergies with SJM Resorts' other tourism projects through its geographical advantage[49](index=49&type=chunk) [Restructuring of Satellite Casino Operations](index=24&type=section&id=Restructuring%20of%20Satellite%20Casino%20Operations) The Group plans to cease operations of seven satellite casinos by end-2025, evaluating property acquisitions, to redeploy resources, enhance brand experience, and optimize costs - The Group will orderly cease operations of **seven satellite casinos** by the end of **2025**, with Casino Grandview having exited by the end of **July 2025**[50](index=50&type=chunk) - The Group is evaluating the possibility of acquiring the properties where **Casino L'Arc Macau** and **Ponte 16 Casino** are located[50](index=50&type=chunk) - The restructuring aims to concentrate resources on the Group's **self-managed core venues**, create a consistent "**Grand Lisboa**" brand experience, expand operational scale, optimize cost structure, and enhance earnings quality[50](index=50&type=chunk) [Acquisition of Designated Property Floors of Grand Lisboa Hotel](index=25&type=section&id=Acquisition%20of%20Designated%20Property%20Floors%20of%20Grand%20Lisboa%20Hotel) The Group plans to acquire 7,504 sqm of former gaming area in Grand Lisboa Hotel for HKD 529 million to expand Casino Grand Lisboa, redeploy resources, and strengthen its market position - The Group plans to acquire approximately **7,504 square meters** of former gaming area within the **Grand Lisboa Hotel** from its controlling shareholder for **HKD 529 million**[51](index=51&type=chunk) - Following the acquisition, the relevant floor area will be integrated into the existing operations of **Casino Grand Lisboa**, and some gaming tables and slot machines from satellite casinos ceasing operations by year-end will be redeployed[51](index=51&type=chunk) - This move aims to consolidate the Group's **leading position** in the **Peninsula market**, enhance non-gaming consumption and customer dwell time, and strengthen its positioning for **VIP and premium mass markets**[51](index=51&type=chunk) [Food and Beverage and MICE](index=25&type=section&id=Food%20and%20Beverage%20and%20MICE) SJM Resorts has completed new F&B and MICE facilities at Grand Lisboa Palace Resort and Grand Lisboa Hotel, awaiting licenses to drive revenue growth and expand customer base - **Grand Lisboa Palace Resort** has completed **seven new F&B projects**, offering diverse cuisines and a modern food court[52](index=52&type=chunk) - The newly established "**Grand Lisboa Palace Garden Hall**" and the **2,900 square meter** "**Grand Lisboa Palace Grand Theatre**" at Grand Lisboa Palace Resort have been completed and are awaiting license approval[52](index=52&type=chunk) - **Grand Lisboa Hotel** will also introduce new meeting rooms and renovated ballrooms to enhance event hosting capabilities and attract more **high-end and business travelers**[52](index=52&type=chunk) [Sports and Cultural Tourism](index=26&type=section&id=Sports%20and%20Cultural%20Tourism) SJM Resorts promotes "Tourism + Culture" with art exhibitions and will support international sports events in H2 to attract diverse visitors and drive business growth - In the first half of **2025**, the **Grand Lisboa Palace Art and Culture Exhibition Hall** opened, hosting "**Grand Lisboa: A Macau Story**" and the world premiere "**Picasso: The Passion for Beauty**," attracting family travelers, student groups, and cultural enthusiasts[53](index=53&type=chunk) - Looking ahead to the second half of the year, **SJM Resorts** will support several iconic international sports events in Macau, including the **China Tennis Tour**, **Macau Golf Open**, and **Macau Grand Prix**[54](index=54&type=chunk) - These events are expected to attract widespread international and regional participation, driving additional visitor traffic and enhancing Macau's appeal to **sports enthusiasts** and **high-end travelers**[54](index=54&type=chunk) [Financial Review](index=27&type=section&id=Financial%20Review) As of June 30, 2025, cash and bank balances were HKD 2.326 billion, total drawn bank loans were HKD 14.316 billion, and the gearing ratio increased to 52.5% [Liquidity, Financial Resources and Capital Structure](index=27&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, bank balances and cash were HKD 2.326 billion, total drawn bank loans were HKD 14.316 billion, and 32.7% of borrowings are due within one year - As of **June 30, 2025**, the Group's bank balances and cash were **HKD 2.326 billion** (excluding **HKD 1.009 billion** in pledged bank deposits), representing a **5.3% increase** from **December 31, 2024**[55](index=55&type=chunk) - The total drawn outstanding bank loan balance was **HKD 14.316 billion**, and the total amount of issued senior notes and convertible bonds was **HKD 10.935 billion**[55](index=55&type=chunk) Debt Maturity Profile (As of June 30, 2025) | Within 1 Year | 1 to 2 Years | 3 to 5 Years | Over 5 Years | Total | | :--- | :--- | :--- | :--- | :--- | | 32.7% | 12.3% | 55.0% | 0% | 100% | [Gearing Ratio](index=27&type=section&id=Gearing%20Ratio) The Group's gearing ratio increased to **52.5%** as of June 30, 2025, up from **51.1%** at December 31, 2024 - The Group's **gearing ratio** was **52.5%** as of **June 30, 2025**, an increase from **51.1%** as of **December 31, 2024**[56](index=56&type=chunk) [Contracted Capital Commitments](index=27&type=section&id=Contracted%20Capital%20Commitments) Contracted capital commitments were HKD 445 million as of June 30, 2025, with HKD 288 million for Macau government tender projects - As of **June 30, 2025**, the Group's **contracted capital commitments** amounted to **HKD 445 million**, of which **HKD 288 million** was for tender projects committed to the Macau government[57](index=57&type=chunk) [Pledge of Assets](index=27&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, property and equipment (HKD 33.739 billion) and right-of-use assets (HKD 1.662 billion) were pledged to banks, along with HKD 1.009 billion in pledged bank deposits - As of **June 30, 2025**, property and equipment with a carrying value of **HKD 33.739 billion** and right-of-use assets with a carrying value of **HKD 1.662 billion** were pledged to banks[58](index=58&type=chunk) - Pledged bank deposits amounted to **HKD 1.009 billion**[58](index=58&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025, and 2024 - The Group had **no significant contingent liabilities** as of **June 30, 2025, and 2024**[59](index=59&type=chunk) [Financial Risks](index=28&type=section&id=Financial%20Risks) The Group employs prudent financial management to minimize currency and interest rate risks, with primary operations in HKD and no speculative trading - The Group employs **prudent financial management policies** to minimize **currency and interest rate risks**[60](index=60&type=chunk) - Primary operations are conducted and accounted for in **Hong Kong Dollars (HKD)**, incurring minimal **foreign exchange fluctuation risk**[60](index=60&type=chunk) - The Group's policy is **not to engage in speculative trading activities**[60](index=60&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section covers non-financial information, including no significant acquisitions/disposals, stable human resources, listed securities repurchases, and corporate governance compliance [Significant Acquisitions and Disposals](index=28&type=section&id=Significant%20Acquisitions%20and%20Disposals) The Group made no significant acquisitions or disposals of subsidiaries and associates during the reporting period - During the reporting period, the Group made **no significant acquisitions or disposals** of subsidiaries and associates[61](index=61&type=chunk) [Human Resources](index=28&type=section&id=Human%20Resources) As of June 30, 2025, the Group had 20,300 full-time employees, with low turnover, and provides remuneration and development opportunities based on performance and market trends - As of **June 30, 2025**, the Group had approximately **20,300 full-time employees**, with a **low employee turnover rate** in the first half of the year[62](index=62&type=chunk) - Employee remuneration is determined with reference to **job performance, professional qualifications, relevant work experience, and market trends**, including salaries, allowances, medical insurance, and provident funds[62](index=62&type=chunk) - The Group encourages employees to participate in **business-related training courses**, sponsors further education, and awards scholarships to employees' children[62](index=62&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=29&type=section&id=Purchase%20Sale%20or%20Redemption%20of%20Listed%20Securities) A wholly-owned subsidiary repurchased and cancelled **USD 8 million** of 4.85% Senior Notes due 2028; no other listed securities were repurchased, sold, or redeemed - A wholly-owned subsidiary of the Company repurchased and cancelled **USD 8 million** principal amount of **4.85% Senior Notes due 2028**[63](index=63&type=chunk) - As of **June 30, 2025**, **USD 482 million** of the 2028 USD Senior Notes remained outstanding[63](index=63&type=chunk) - Save as disclosed above, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of its **listed securities**[63](index=63&type=chunk) [Corporate Governance Code](index=29&type=section&id=Corporate%20Governance%20Code) The Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 Part 2 of the Listing Rules for H1 2025 - The Company complied with all code provisions in the **Corporate Governance Code** as set out in **Appendix C1 Part 2** of the Listing Rules for the period from **January 1, 2025, to June 30, 2025**[64](index=64&type=chunk) [Review of Interim Report and Unaudited Condensed Consolidated Financial Statements](index=29&type=section&id=Review%20of%20Interim%20Report%20and%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The interim report and unaudited condensed consolidated financial statements for H1 2025 were reviewed by the Audit Committee and the Company's auditors - The Company's **interim report** for the six months ended **June 30, 2025**, has been reviewed by the Company's **Audit Committee**[65](index=65&type=chunk) - The **condensed consolidated financial statements** have been reviewed by the Audit Committee in conjunction with the Company's auditors in accordance with **Hong Kong Standard on Review Engagements 2410**[65](index=65&type=chunk)

I. [Company Information and GEM Characteristics](index=1&type=section&id=I.%20Company%20Information%20and%20GEM%20Characteristics) This section outlines the company's profile, GEM listing features, and associated investment risks [Company Overview](index=9&type=section&id=1.1%20Company%20Overview) WORLDGATE GLOBAL LOGISTICS LTD, incorporated in 2016 and listed on GEM, is an investment holding company with subsidiaries providing international freight forwarding, used mobile phone trading, and plastic product manufacturing - The company was incorporated in the Cayman Islands on February 18, 2016, and its shares were listed on GEM of the Stock Exchange on July 6, 2016[11](index=11&type=chunk) - Key businesses include international freight forwarding and logistics services (Malaysia and Hong Kong), trading of used mobile phones in Hong Kong, and manufacturing and trading of plastic products in Vietnam[12](index=12&type=chunk) [GEM Listing Characteristics and Risk Disclosure](index=2&type=section&id=1.2%20GEM%20Listing%20Characteristics%20and%20Risk%20Disclosure) The GEM market targets small and medium-sized companies, carrying higher investment risks, potential for significant market volatility, and no guarantee of high liquidity - The GEM market is positioned for small and medium-sized companies, entailing **higher investment risks**, potential for significant market volatility, and no guarantee of high liquidity[4](index=4&type=chunk) - The Board of Directors collectively and individually assumes full responsibility for the accuracy, completeness, and non-misleading nature of the information contained in this report[4](index=4&type=chunk) II. [Condensed Consolidated Financial Results](index=3&type=section&id=II.%20Condensed%20Consolidated%20Financial%20Results) This section summarizes the group's condensed consolidated financial performance and position for the reporting period [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue significantly increased by 54.2% to 55,828 thousand Ringgit, gross profit grew by 220%, and loss for the period narrowed by 58.4% to 2,740 thousand Ringgit, achieving a turnaround to total comprehensive income of 196 thousand Ringgit Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (thousand Ringgit) | 2024 (thousand Ringgit) | Change | | :--- | :--- | :--- | :--- | | Revenue | 55,828 | 36,202 | Increase 54.2% | | Gross Profit | 7,108 | 2,222 | Increase 220% | | Loss Before Income Tax Expense | (2,706) | (6,551) | Loss narrowed 58.7% | | Loss for the Period | (2,740) | (6,588) | Loss narrowed 58.4% | | Total Comprehensive Income/(Expense) for the Period | 196 | (6,922) | Turned from loss to profit | Loss Per Share (For the six months ended June 30) | Indicator | 2025 (Ringgit) | 2024 (Ringgit) | Change | | :--- | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (0.37) cents | (1.01) cents | Loss narrowed 63.4% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's non-current assets increased by 13.5% to 13,562 thousand Ringgit, and current assets grew by 7.0% to 37,869 thousand Ringgit, while current liabilities decreased by 9.9%, leading to a 31.9% increase in net current assets and a 30.8% increase in total equity, indicating an improved financial position Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (thousand Ringgit) | December 31, 2024 (thousand Ringgit) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 13,562 | 11,950 | Increase 13.5% | | Current Assets | 37,869 | 35,379 | Increase 7.0% | | Current Liabilities | 18,929 | 21,019 | Decrease 9.9% | | Net Current Assets | 18,940 | 14,360 | Increase 31.9% | | Net Assets | 31,707 | 24,241 | Increase 30.8% | | Total Equity | 31,707 | 24,241 | Increase 30.8% | - Property, plant and equipment increased from 2,047 thousand Ringgit as of December 31, 2024, to **4,603 thousand Ringgit** as of June 30, 2025[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the Company increased by 9.9% to 32,431 thousand Ringgit, primarily due to a 7,270 thousand Ringgit increase in share capital from new share placement and positive foreign exchange reserve movements, despite a loss of 2,639 thousand Ringgit for the period Key Data from Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (thousand Ringgit) | 2024 (thousand Ringgit) | Change | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company at beginning of period | 25,086 | 36,256 | Decrease 30.8% | | Loss for the Period | (2,639) | (6,404) | Loss narrowed 58.8% | | New shares issued under placement | 7,270 | – | New | | Other Comprehensive Income/(Expense) for the Period | 2,714 | (340) | Turned from negative to positive | | Equity attributable to owners of the Company at end of period | 32,431 | 29,512 | Increase 9.9% | - Share capital increased from 33,712 thousand Ringgit as of January 1, 2025, to **40,982 thousand Ringgit** as of June 30, 2025, mainly due to the placement of new shares[9](index=9&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=2.4%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities increased to 7,342 thousand Ringgit, and net cash used in investing activities slightly increased; however, net cash from financing activities turned from an outflow to an inflow of 6,603 thousand Ringgit, primarily from share placement proceeds, significantly narrowing the net decrease in cash and cash equivalents by 72.8% Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (thousand Ringgit) | 2024 (thousand Ringgit) | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (7,342) | (4,997) | Outflow increased 46.9% | | Net cash used in investing activities | (1,425) | (1,369) | Outflow increased 4.1% | | Net cash from financing activities | 6,603 | (1,601) | Turned from outflow to inflow | | Proceeds from share placement | 7,270 | – | New | | Net decrease in cash and cash equivalents | (2,164) | (7,967) | Decrease narrowed 72.8% | | Cash and cash equivalents at end of period | 7,086 | 13,374 | Decrease 47.0% | III. [Notes to the Financial Statements](index=9&type=section&id=III.%20Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the financial statements, covering company information, segment data, revenue, expenses, and other key disclosures [Company Information and Basis of Preparation](index=9&type=section&id=3.1%20Company%20Information%20and%20Basis%20of%20Preparation) This section outlines the company's registration details, principal place of business, business scope, and the basis of preparation and accounting policies for its financial statements, which are presented in Malaysian Ringgit and comply with Hong Kong Financial Reporting Standards, with no significant impact from new standards adoption - The Company is an investment holding company, with principal businesses including international freight forwarding and logistics services, trading of used mobile phones in Hong Kong, and manufacturing and trading of plastic products in Vietnam[12](index=12&type=chunk) - The financial statements are presented in Malaysian Ringgit, comply with Hong Kong Financial Reporting Standards, and are prepared consistently with the 2024 annual report, with no significant impact from new standards adoption[13](index=13&type=chunk) [Segment Information](index=10&type=section&id=3.2%20Segment%20Information) The Group is organized into three reportable segments: freight forwarding and related services, trading of used mobile phones, and manufacturing and trading of plastic products, with management assessing performance based on adjusted profit/loss before tax, excluding results from associates, fair value changes of financial assets, and unallocated corporate expenses - The Group has three reportable segments: freight forwarding and related services, trading of used mobile phones, and manufacturing and trading of plastic products[14](index=14&type=chunk)[16](index=16&type=chunk) - Segment performance is assessed based

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 （於香港註冊成立之有限公司） （股份代號：966） 公 告 截至 2025 年 6 月 30 日止六個月中期業績 中國太平保險控股有限公司 公告 – 截至 2025 年 6 月 30 日止六個月中期業績 中國太平保險控股有限公司董事會公佈本公司及其附屬公司截至 2025 年 6 月 30 日止六個月未經 審核的中期財務業績如下，請一併閱覽下文管理層討論和分析： 管理層討論和分析 2025 年上半年，中國太平堅決落實中央各項決策部署，扎實推進「防風險、強管理、促發展、保 安全」走深走實，高質量發展穩步向前。業務發展穩中有進，發展質量持續向好。服務國家戰略 質效不斷提高，參與粵港澳大灣區建設不斷深入，支持香港鞏固提升國際金融中心地位力度加 大，奮力寫好「五篇大文章」。風險防控能力有效提升，風險合規管理不斷強化。戰略佈局扎實有 力，業務協同持續推進，服務運營水平不斷提高，經營管理基礎有力夯實。 股東應佔溢利持 ...