香港交易及結算所有限公司以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，並明確表示概不會就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 TAO HEUNG HOLDINGS LIMITED 稻 香 控 股 有 限 公 司 * （ 於開曼群島註冊成立的有限公司） （股份代號：573） 截至二零二五年六月三十日止六個月 未經審核中期業績公告 | 摘要 | | | | | | --- | --- | --- | --- | --- | | | 截至六月三十日止六個月 | | 減少 | | | | 二零二五年 | 二零二四年 | 百分比 | | | | （千港元） | （ 千港元） | | | | 收益 | 1,139,706 | 1,285,575 | (11.3 | %) | | 期內（虧損）╱溢利 | (35,775) | 9,430 | (479.4 | %) | | 本公司權益持有人應佔 | | | | | | （虧損）╱溢利 | (36,957) | 4,022 | (1,018.9 | %) | | | 港仙 | 港仙 | | ...

[Company's Major Financial Indicators](index=2&type=section&id=公司主要財務指標) This section presents the company's key financial performance indicators and accounting data for the reporting period [Major Accounting Data and Financial Indicators](index=2&type=section&id=一%E3%80%81公司主要會計數據和財務指標) For the six months ended June 30, 2025, the company's revenue decreased by 4.42% year-on-year, while net profit and total profit significantly declined by over 90%; net cash flow from operating activities increased by 125% year-on-year, and R&D investment as a percentage of operating revenue increased by 7.57 percentage points | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 390,083 | 408,124 | -4.42 | | Profit/(Loss) before Income Tax | 5,622 | 72,187 | -92.21 | | Profit/(Loss) for the Period | 5,622 | 70,344 | -91.89 | | Net Profit Attributable to Shareholders of the Listed Company | 5,715 | 70,473 | -91.89 | | Net Cash Flow from Operating Activities | 62,212,859 | 27,649,549 | 125.00 | | Basic Earnings Per Share (RMB/share) | 0.01 | 0.07 | -85.71 | | R&D Investment as % of Operating Revenue | 45.63 | 38.06 | Increased by 7.57 percentage points | - Total profit and net profit attributable to shareholders of the listed company significantly decreased, primarily due to increased R&D expenses in the current period and compensation/liquidated damages recognized in the prior year from terminating cooperation with Shanghai Huizheng[9](index=9&type=chunk) - Net cash flow from operating activities increased, mainly due to the growth in cash received from sales of goods and provision of services during the reporting period[9](index=9&type=chunk) [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=5&type=section&id=二%E3%80%81境內外會計準則下會計數據差異) Since February 24, 2020, the company has prepared overseas financial statements in accordance with Chinese Enterprise Accounting Standards, thus there are no differences in accounting data under domestic and overseas accounting standards for this reporting period - Disclosure of differences in accounting data under domestic and overseas accounting standards is not applicable for this reporting period[10](index=10&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=5&type=section&id=三%E3%80%81非經常性損益項目和金額) During the reporting period, the company's total non-recurring gains and losses amounted to RMB 15,206,999, primarily from disposal gains/losses of non-current assets, government grants, and fair value changes/disposal gains/losses of financial assets and liabilities | Non-recurring Gains and Losses Item | Amount (RMB) | Notes (if applicable) | | :--- | :--- | :--- | | Disposal gains/losses of non-current assets | 203,055 | | | Government grants recognized in current profit or loss | 6,850,812 | | | Gains/losses from changes in fair value of financial assets and liabilities held by non-financial enterprises and gains/losses from disposal of financial assets and liabilities | 8,257,294 | Primarily interest or income from bank structured deposits and wealth management products | | Other non-operating income and expenses apart from the above | -103,860 | | | Less: Impact on minority interests (after tax) | 302 | | | Total | 15,206,999 | | [Management Discussion and Analysis](index=6&type=section&id=管理層討論與分析) This section provides a comprehensive review of the Group's financial performance, business operations, R&D strategies, core competencies, and risk factors [Financial Review for the Six Months Ended June 30, 2025](index=6&type=section&id=截至二零二五年六月三十日止六個月財務回顧) During the reporting period, the company's operating revenue decreased by 4% year-on-year, mainly due to reduced sales of its core product, Libaoduo®; operating costs increased due to higher per-unit production costs of Libaoduo® impacted by centralized procurement; selling expenses surged by 59%, while administrative expenses decreased by 13%; R&D expenses continued to grow by 15%; net profit significantly dropped by 92% year-on-year, primarily due to compensation and liquidated damages recognized in the prior year; the company maintains a stable financial position with no bank borrowings or asset pledges, actively managing cash through structured deposits [Operating Revenue](index=6&type=section&id=營業收入) For the six months ended June 30, 2025, the Group's operating revenue was approximately RMB 390,083 thousand, a 4% year-on-year decrease, primarily from sales of medical and diagnostic products | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 390,083 | 408,124 | -4 | | Main Revenue Source | Sales of Medical and Diagnostic Products | Sales of Medical and Diagnostic Products | Largely consistent | [Revenue from Sales of Pharmaceutical and Diagnostic Products](index=6&type=section&id=銷售醫藥及診斷產品的收入) Revenue from sales of medical and diagnostic products was RMB 383,924 thousand, accounting for 98.42% of main business revenue, a 6% year-on-year decrease; Aile®, Libaoduo®, and Fumeida® were the main contributing products, accounting for 49%, 30%, and 20% respectively | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue from Sales of Medical and Diagnostic Products | 383,924 | 408,113 | -6 | | Proportion of Main Business Revenue | 98.42% | - | - | | Aile® Contribution Ratio | 49% | - | - | | Libaoduo® Contribution Ratio | 30% | - | - | | Fumeida® Contribution Ratio | 20% | - | - | - The sales and promotion of Aile® and Fumeida®, two photodynamic products, are managed by the Group's sales team[14](index=14&type=chunk) [Operating Costs](index=6&type=section&id=營業成本) Cost of main business was RMB 39,774 thousand, a 35.29% year-on-year increase; the increase in operating costs was mainly due to higher per-unit production costs of Libaoduo® caused by reduced output due to centralized procurement; the proportion of main business cost to main business revenue rose to 10%, but the overall gross profit margin remained largely stable | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Main Business | 39,774 | 29,400 | 35.29 | | Proportion of Operating Costs | 100.00% | - | - | | Cost of Main Business as % of Main Business Revenue | 10% | 7% | Increased by 3 percentage points | - The increase in operating costs was mainly due to Libaoduo® being affected by centralized procurement, leading to a decrease in output and an increase in per-unit production costs[15](index=15&type=chunk) [Selling and Administrative Expenses](index=6&type=section&id=銷售費用和管理費用) Selling expenses significantly increased by 59% year-on-year to RMB 181,910 thousand, primarily for marketing and academic promotion; administrative expenses decreased by 13% year-on-year to RMB 20,303 thousand, mainly due to lower salary expenses | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling Expenses | 181,910 | 114,493 | 59 | | Administrative Expenses | 20,303 | 23,374 | -13 | - The increase in selling expenses mainly includes marketing and academic promotion fees, salary expenses, depreciation and amortization expenses, business entertainment expenses, and travel expenses[16](index=16&type=chunk) - The decrease in administrative expenses was mainly due to lower salary expenses in the current reporting period compared to the prior year[16](index=16&type=chunk) [Research and Development Expenses](index=7&type=section&id=研發費用) R&D expenses were RMB 177,976 thousand, a 15% year-on-year increase, mainly due to the steady progress of R&D projects; the company adopts a conservative capitalization policy for R&D projects, with most in-progress project expenditures recognized as expenses | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | R&D Expenses | 177,976 | 154,593 | 15 | | Total R&D Investment | 177,976 | 155,330 | 15 | - The company adopts a relatively conservative and prudent capitalization policy for R&D projects, with most in-progress project expenditures recognized as expenses when incurred[17](index=17&type=chunk) [Net Finance Income](index=7&type=section&id=財務收入－淨額) Net finance income was approximately RMB 392 thousand, a 76.6% year-on-year decrease, primarily due to reduced interest income | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Finance Income | 392 | 1,676 | -76.6 | - The decrease in finance income was mainly due to a reduction in interest income during the reporting period compared to the prior year[18](index=18&type=chunk) [Other Income](index=7&type=section&id=其他收益) Other income was RMB 8,746 thousand, a 59% year-on-year decrease, mainly due to a reduction in government grants recognized during the year | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 8,746 | 21,114 | -59 | - The decrease in other income was mainly due to a reduction in government grants recognized during the year[19](index=19&type=chunk) [Income Tax Expense](index=7&type=section&id=所得稅費用) The Group's main subsidiaries are recognized as high-tech enterprises, applying a preferential tax rate of 15%; Hong Kong subsidiary Fengyi Holdings is subject to Hong Kong profits tax, but no assessable profits were generated during the reporting period, thus no Hong Kong profits tax was accrued; applicable tax rates and policies remained unchanged from the prior year - The Company, Taizhou Fudan-Zhangjiang, and Shanghai Suyuan Biotechnology Co., Ltd. are all recognized as high-tech enterprises, applying a **15%** corporate income tax rate[20](index=20&type=chunk) - Fengyi (Hong Kong) Holdings Limited is subject to Hong Kong profits tax, but no estimated assessable profits were generated during the reporting period, thus no Hong Kong profits tax was accrued[20](index=20&type=chunk) - As of June 30, 2025, the relevant tax rates and tax policies applicable to the Group remained unchanged compared to the first half of 2024[21](index=21&type=chunk) [Net Profit and Net Profit Margin](index=7&type=section&id=淨利潤及淨利潤率) The Group's net profit was approximately RMB 5,622 thousand, a year-on-year decrease of about 92%; net profit margin declined from 17% in the prior year to 1%, primarily due to compensation and liquidated damages recognized in the prior year | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Profit | 5,622 | 70,344 | -92 | | Net Profit Margin | 1% | 17% | Decreased by 16 percentage points | - The decrease in net profit margin was mainly due to the compensation and liquidated damages recognized by the Company in the prior year after terminating cooperation with Shanghai Huizheng[22](index=22&type=chunk) [Profit Attributable to Shareholders of the Company](index=8&type=section&id=本公司股東應佔年度利潤) Profit attributable to shareholders of the Company was approximately RMB 5,715 thousand, a 92% year-on-year decrease | Indicator | Jan-Jun 2025 (RMB thousands) | Jan-Jun 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Shareholders of the Company | 5,715 | 70,473 | -92 | [Liquidity and Financial Resources](index=8&type=section&id=流動資金及財務資源) The Group's funds primarily originate from internal earnings, proceeds from listings, government grants, and commercial loans; as of June 30, 2025, cash and cash equivalents amounted to RMB 1,106,490,805; the company adopts a conservative financial policy, centrally managing funds and utilizing structured deposit products to enhance returns on idle capital - The Group's funds primarily originate from internal earnings, proceeds from listings, government grants, and commercial loans[24](index=24&type=chunk) | Indicator | Jun 30, 2025 (RMB) | Jun 30, 2024 (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,106,490,805 | 1,222,481,006 | - The Group has no outstanding bank borrowings, and the debt-to-equity ratio is not applicable[24](index=24&type=chunk) - During the reporting period, the Group subscribed to structured deposit products to effectively utilize idle funds[25](index=25&type=chunk) [Bank Financing](index=8&type=section&id=銀行融資) As of June 30, 2025, the Group had no outstanding bank financing - As of June 30, 2025, the Group had no outstanding bank financing[27](index=27&type=chunk) [Foreign Exchange Risk](index=8&type=section&id=外匯風險) Most of the Group's transactions occur in the domestic market, and exchange rate fluctuations have no significant impact on operating results and financial position - Most of the Group's transactions occur in the domestic market, and exchange rate fluctuations will not have a significant impact on the Group's operating results and financial position[28](index=28&type=chunk) [Asset Pledges](index=8&type=section&id=資產抵押) As of June 30, 2025, the Group had no asset pledges - As of June 30, 2025, the Group had no asset pledges[29](index=29&type=chunk) [Future Plans for Material Investments or Capital Assets](index=9&type=section&id=重大投資或資本資產的未來計劃) As of June 30, 2025, the Group has no material future plans for capital expenditures - As of June 30, 2025, the Group has no material future plans for capital expenditures[30](index=30&type=chunk) [Dividends](index=9&type=section&id=股利) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Company's Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[31](index=31&type=chunk) [Contingent Liabilities](index=9&type=section&id=或然事項) As of June 30, 2025, the directors did not identify any material contingent liabilities; the company holds a 39.5663% equity interest in Shanghai Handu Pharmaceutical Technology Co., Ltd., recording an investment loss of approximately RMB 2.132 million; additionally, the company holds equity instruments of TuHURA Biosciences, Inc., with a fair value of approximately RMB 5,747 - As of June 30, 2025, the Company's directors did not identify any material contingent liabilities[32](index=32&type=chunk) - The net carrying amount of the Group's long-term equity investments was **RMB 253,145 thousand**, of which the equity interest in Shanghai Handu Pharmaceutical Technology Co., Ltd. ("Handu Pharmaceutical") was approximately **RMB 221,739 thousand**, accounting for **8.72%** of the Group's total assets[33](index=33&type=chunk) - During the reporting period, an investment loss of approximately **RMB 2.132 million** was recorded for Handu Pharmaceutical[33](index=33&type=chunk) - The Group holds **360** ordinary shares of TuHURA Biosciences, Inc., with a fair value of approximately **RMB 5,747**[37](index=37&type=chunk) [Subscription of Wealth Management Products and Structured Deposits](index=11&type=section&id=認購理財產品及結構性存款產品) During the reporting period, the company subscribed to multiple structured deposit products totaling RMB 1 billion using its own idle funds and temporarily idle raised funds; all these products have matured and been redeemed, yielding a total return of approximately RMB 8.26 million, aiming to enhance capital returns while ensuring fund safety and liquidity - The Company entered into structured deposit product agreements with Pudong Development Bank, Ping An Bank, and Bank of China, subscribing to structured deposit products totaling **RMB 1 billion**[41](index=41&type=chunk) - The aforementioned structured deposit products have all matured and been redeemed, with the return range consistent with the disclosed range, showing no material deviation[42](index=42&type=chunk) - During the reporting period, the Group obtained total returns of approximately **RMB 8.26 million** from purchasing structured deposits and wealth management products[43](index=43&type=chunk) [Business Review](index=12&type=section&id=業務回顧) The Group focuses on innovative R&D, manufacturing, and marketing of biopharmaceuticals, strategically prioritizing photodynamic and antibody-drug conjugate (ADC) therapies; China's pharmaceutical industry policies support innovative drug development, with promising market prospects for dermatological and anti-tumor drugs; the company's core products, Aile®, Fumeida®, and Libaoduo®, hold advantages in their respective fields, with ongoing expansion of new indications and drug development; R&D investment continues to increase, but Libaoduo® faces price reduction risks due to centralized procurement; the company is committed to strengthening core technological advantages, enriching its product portfolio, and actively addressing market challenges [Description of the Company's Industry and Main Business during the Reporting Period](index=12&type=section&id=一%E3%80%81報告期內公司所屬行業及主營業務情況說明) The Group primarily engages in innovative R&D, manufacturing, and marketing of biopharmaceuticals, with a core focus on addressing unmet clinical needs and providing effective solutions; China's pharmaceutical industry is rapidly developing with policy support, and innovative drugs are protected by full-chain policies; the dermatological drug market continues to grow, with unmet needs in the treatment of condyloma acuminatum and port-wine stains; the anti-tumor drug market is vast, and liposomal doxorubicin and other cyclic anti-tumor drugs hold significant importance [Industry Overview of the Group](index=12&type=section&id=%EF%BC%88一%EF%BC%89本集團所處行業情況) China's pharmaceutical industry, as a strategic emerging industry, receives intensive national policy support emphasizing accelerated innovative drug development, optimized review and approval processes, and expanded payment channels; the dermatological drug market continues to grow, with a projected CAGR of 6.32% from 2024-2028; the anti-tumor drug market is enormous, with global oncology spending expected to reach $370 billion by 2027, and innovative formulations like liposomal doxorubicin offering significant advantages - National policies intensively support the development of innovative drugs, including the "Government Work Report," "Key Tasks for Deepening Medical and Healthcare System Reform in 2024" issued by the General Office of the State Council, and the "Implementation Plan for Full-Chain Support of Innovative Drug Development" approved by the State Council Executive Meeting[45](index=45&type=chunk) - China's dermatological drug market size is projected to grow from **RMB 2.779 billion** in 2024 to **RMB 3.551 billion** in 2028, with a compound annual growth rate of **6.32%**[47](index=47&type=chunk) - Global oncology spending is expected to reach **$370 billion** by 2027, and liposomal doxorubicin offers significant advantages over traditional doxorubicin, such as longer action time, lower cardiotoxicity, and better tumor targeting[49](index=49&type=chunk)[50](index=50&type=chunk) [Main Sales Products of the Group](index=15&type=section&id=%EF%BC%88二%EF%BC%89本集團主營業務收入主要來源於公司醫藥產品的銷售收入%EF%BC%8C本集團的主要銷售產品包括%EF%BC%9A) The Group's main business revenue primarily comes from the sales of Aile® (photodynamic drug for condyloma acuminatum), Fumeida® (photodynamic drug for port-wine stains), and Libaoduo® (long-circulating doxorubicin hydrochloride liposome injection); both Aile® and Fumeida® are global first-in-class drugs, filling therapeutic gaps in their respective fields and being included in clinical guidelines; Libaoduo®, as the first domestic generic of Doxil, offers advantages in improving efficacy and reducing toxicity - Aile® is the world's first photodynamic drug for condyloma acuminatum, significantly reducing recurrence rates, filling therapeutic gaps in special areas, and included in "Dermatology and Venereology" textbooks and clinical treatment guidelines[52](index=52&type=chunk)[53](index=53&type=chunk) - Fumeida® is the world's first photodynamic drug for port-wine stains, boasting significant advantages such as stable compound structure, low phototoxicity, rapid metabolism, short light avoidance period, high cure rate, low scar incidence, and low recurrence rate[53](index=53&type=chunk) - Libaoduo® is the first domestic generic of Doxil, utilizing stealth liposome technology, which offers advantages in tumor therapeutics such as improved efficacy, reduced cardiotoxicity, myelosuppression, and hair loss, and is included in multiple cancer diagnosis and treatment guidelines[55](index=55&type=chunk) [Discussion and Analysis of Operating Performance](index=16&type=section&id=二%E3%80%81經營情況的討論與分析) The Group adheres to innovation and R&D as its core, strategically focusing on photodynamic drugs and antibody-drug conjugates (ADCs); photodynamic drugs continue to expand new indications and compounds for skin diseases, precancerous lesions, and tumor visualization; the ADC drug R&D pipeline is progressing smoothly, with multiple projects entering clinical trial stages and commercial production capabilities already established; during the reporting period, core product sales revenue was affected by centralized procurement, leading to a price reduction for Libaoduo®, which is expected to adversely impact future sales revenue [Research Strategy and Review](index=16&type=section&id=%EF%BC%88一%EF%BC%89研究策略及回顧) The Group's R&D strategy focuses on photodynamic drugs and antibody-drug conjugates (ADCs); photodynamic drugs continue to advance clinical research for the treatment of condyloma acuminatum, port-wine stains, acne, cervical precancerous lesions, actinic keratosis, and intraoperative visualization diagnosis for glioblastoma, bladder cancer, and breast cancer; for ADC drugs, anti-Trop2, anti-Her2, and anti-DLL3 antibody-drug conjugates are all progressing through different stages of clinical research, and a linker-drug platform has been established - The Group's innovative R&D areas focus on photodynamic drugs for skin diseases and precancerous lesions, photodynamic drugs for intraoperative tumor visualization, antibody-drug conjugates for tumors, and other drugs with proprietary patents or technological barriers[57](index=57&type=chunk) - The photodynamic drug R&D pipeline primarily focuses on two directions: photodynamic therapy (PDT) and photodynamic diagnosis (PDD), including expanding clinical new indications for marketed drugs and developing new photosensitizing compounds and supporting medical devices[58](index=58&type=chunk) - The Aminolevulinic Acid Hydrochloride powder for the treatment of HPV-infected cervical precancerous lesions and moderate-to-severe acne has completed Phase II clinical trials, and Phase III studies will be initiated as soon as possible[62](index=62&type=chunk)[63](index=63&type=chunk) - The Aminolevulinic Acid Hydrochloride oral solution powder for intraoperative visualization of high-grade glioblastoma has completed enrollment for confirmatory clinical trials and will submit a marketing application as soon as possible[65](index=65&type=chunk) - The Phase I clinical trial application for FZ-P001 Sodium for injection (Class 1 new chemical drug) for intraoperative visualization of malignant lesions in cancer has been accepted[67](index=67&type=chunk) - Phase III clinical research for anti-Trop2 antibody-drug conjugate SN38 for triple-negative breast cancer is ongoing; ADC projects such as anti-Her2 antibody-drug conjugate BB05, anti-Trop2 antibody-drug conjugate BB05, and anti-DLL3 antibody-drug conjugate BB05 are all undergoing Phase I/II clinical research[70](index=70&type=chunk)[72](index=72&type=chunk) [Industrialization Operations and Review](index=21&type=section&id=%28二%29%20產業化運營及回顧) During the reporting period, the Group's operating revenue decreased by 4% year-on-year; Aile® sales revenue increased by 2% year-on-year, while Fumeida® decreased by 7%; Libaoduo® sales revenue decreased by 16% year-on-year due to centralized procurement, with market retail prices gradually lowering from May 1, 2025; Taizhou Fudan-Zhangjiang's ADC workshop has been completed and put into production, providing assurance for the industrialization of ADC projects; the company will strengthen the competitiveness of its own sales team and expand hospital and department access - During the reporting period, the Group's operating revenue decreased by **4%** compared to the prior year[75](index=75&type=chunk) | Product | YoY Change in Sales Revenue | | :--- | :--- | | Aile® | Increased by 2% | | Fumeida® | Decreased by 7% | | Libaoduo® | Decreased by 16% | - Libaoduo®'s market retail price was adjusted and gradually lowered from May 1, 2025, due to centralized procurement rules and changes in market competition[75](index=75&type=chunk) - Taizhou Fudan-Zhangjiang's newly built antibody-drug conjugate workshop has achieved commercial-scale mass production capability for the anti-Trop2 antibody-drug conjugate SN38 project and completed commercial production technology transfer and proposed Phase III clinical trial sample production for the anti-Her2 antibody-drug conjugate BB05 project[76](index=76&type=chunk) [Significant Changes in the Company's Operating Performance and Future Impact during the Reporting Period](index=23&type=section&id=%EF%BC%88三%EF%BC%89報告期內公司經營情況的重大變化%EF%BC%8C以及報告期內發生的對公司經營情況有重大影響和預計未來會有重大影響的事項) The company's anti-tumor drug Libaoduo® was not selected in the tenth batch of national centralized procurement, leading to adjustments in its sales strategy and pricing, with market retail prices decreasing by no less than 35% from May 1, 2025; this is expected to adversely impact the company's sales revenue for the 2025 fiscal year and subsequent periods, potentially leading to a risk of single-product losses - The Company's anti-tumor drug Libaoduo® was not selected in the tenth batch of national centralized procurement[80](index=80&type=chunk) - From May 1, 2025, Libaoduo®'s market retail price will be gradually lowered, with a reduction of no less than **35%**[80](index=80&type=chunk) - This price adjustment for Libaoduo® is expected to adversely impact the company's sales revenue for the 2025 fiscal year and subsequent periods[80](index=80&type=chunk) [Analysis of Core Competitiveness during the Reporting Period](index=24&type=section&id=三%E3%80%81報告期內核心競爭力分析) The company's core competitiveness lies in innovative drug R&D, technological platform advantages, industrial promotion, production quality control, and its management and technical teams; during the reporting period, multiple photodynamic and ADC R&D projects made progress, with some reaching international leading levels; the company possesses four major technology platforms: genetic engineering, photodynamic, nanotechnology, and oral solid preparations; R&D investment continues to grow, and multiple government grants and awards have been received [Core Competitiveness Analysis](index=24&type=section&id=%EF%BC%88一%EF%BC%89核心競爭力分析) The company uses unmet clinical needs and unique therapeutic effects as criteria for new drug R&D project initiation and evaluation, seeking balanced development between innovative generics and first-in-class drugs; core competencies include R&D innovation advantages in pipeline projects (e.g., Hemoporfin US Phase II clinical, multiple new indications for Aminolevulinic Acid Hydrochloride), technological platform advantages (genetic engineering, photodynamic, nanotechnology, oral solid preparations), academic promotion advantages, a stringent production quality control system, and a stable and youthful management and technical team - The Company adheres to satisfying unmet and unsatisfactory clinical treatment needs and demonstrating unique therapeutic effects as decisive factors for new drug R&D project initiation and evaluation[81](index=81&type=chunk) | R&D Area | Project Name | Proposed Indication | Progress Achieved | Comparison with Industry Technology Level | | :--- | :--- | :--- | :--- | :--- | | Photodynamic Drug R&D | Hemoporfin (F0026) | Port-wine Stains | US Phase II clinical study ongoing | International leading level: new compound, new indication | | Photodynamic Drug R&D | Aminolevulinic Acid Hydrochloride – CIN (F0005) | HPV-infected Cervical Lesions | Phase II clinical study completed | International leading level: new indication | | Photodynamic Drug R&D | Aminolevulinic Acid Hydrochloride – Acne (F0014) | Acne | Phase II clinical study completed | International leading level: new indication | | ADC Drug R&D | Anti-DLL3 Antibody-Drug Conjugate BB05 (F0041) | Tumor | Phase I clinical study ongoing | International leading level: new compound | - The Group insists on academic promotion as its primary marketing method, utilizing diverse online platform channels to form a mature network service system[83](index=83&type=chunk) - The Group adheres to Chinese cGMP standards and refers to US FDA and European EMA cGMP requirements to establish comprehensive production and quality management regulations and systems[85](index=85&type=chunk) [Events Seriously Affecting Core Competitiveness and Responses during the Reporting Period](index=26&type=section&id=%EF%BC%88二%EF%BC%89報告期內發生的導致公司核心競爭力受到嚴重影響的事件%E3%80%81影響分析及應對措施) During the reporting period, no events occurred that severely impacted the company's core competitiveness - Not applicable[86](index=86&type=chunk) [Core Technologies and R&D Progress](index=27&type=section&id=%EF%BC%88三%EF%BC%89核心技術與研發進展) The company has established four core technology platforms: genetic engineering, photodynamic, nanotechnology, and oral solid preparations, strategically focusing on photodynamic drugs and antibody-drug conjugates; during the reporting period, the clinical study of Aminolevulinic Acid Hydrochloride granules for adjuvant use in bladder cancer surgical resection completed its first patient enrollment, and the Phase I clinical trial application for FZ-P001 Sodium for injection for intraoperative visualization of malignant lesions in cancer was accepted; total R&D investment amounted to RMB 177,976,257, a 14.58% year-on-year increase, accounting for 45.63% of operating revenue; the number of R&D personnel was 155, and government grants and awards totaling approximately RMB 11.055 million were received - The Company has formed genetic engineering technology, photodynamic technology, nanotechnology, and oral solid preparation technology platforms, strategically focusing on photodynamic drugs and antibody-drug conjugates[87](index=87&type=chunk) - The Company's photodynamic technology is at a world-leading level, with marketed products covering two of the four categories: hematoporphyrin, aminolevulinic acid hydrochloride, verteporfin, and hemoporfin[87](index=87&type=chunk) - Nanoparticle formulation R&D presents technological barriers, and the Company has established a nanotechnology platform and successfully launched Libaoduo®[88](index=88&type=chunk)[89](index=89&type=chunk) - In March 2025, the confirmatory clinical study of Aminolevulinic Acid Hydrochloride granules for adjuvant use in surgical resection of non-muscle invasive bladder cancer completed its first subject enrollment[91](index=91&type=chunk) - In June 2025, the Phase I clinical trial application for FZ-P001 Sodium for injection for intraoperative visualization of malignant lesions in cancer was accepted[91](index=91&type=chunk) | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 177,976,257 | 154,592,537 | 15.13 | | Capitalized R&D Investment | – | 737,612 | -100.00 | | Total R&D Investment | 177,976,257 | 155,330,149 | 14.58 | | Total R&D Investment as % of Operating Revenue | 45.63 | 38.06 | Increased by 7.57 percentage points | | Indicator | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | Number of Company R&D Personnel | 155 | 180 | | Proportion of R&D Personnel to Total Company Staff (%) | 17.24 | 19.72 | | Total R&D Personnel Remuneration (RMB) | 36,390,548 | 43,950,526 | | Average R&D Personnel Remuneration (RMB) | 234,778 | 244,170 | - During the reporting period, the Group received government grants and awards totaling approximately **RMB 11.055 million** for various R&D and industrialization projects[96](index=96&type=chunk) [Risk Factors](index=31&type=section&id=四%E3%80%81風險因素) The company faces risks associated with long R&D cycles, high costs, and uncertain outcomes for new drugs; loss of core technical personnel could impact technological leadership and sustained profitability; a relatively singular product portfolio means leading products are vulnerable to policy and market competition, potentially adversely affecting operations and financial performance; Libaoduo®'s non-selection in national centralized procurement led to a significant price reduction, with 2025 sales revenue projected to decrease by over 50% year-on-year, potentially resulting in single-product losses - New drug R&D to market launch can take ten years or more, is costly, and has significant uncertainty in outcomes[97](index=97&type=chunk) - The loss of core technical personnel could adversely affect the Company's core competitiveness and sustained profitability[98](index=98&type=chunk) - The Company's product portfolio is relatively singular, with leading products Aile®, Libaoduo®, and Fumeida® accounting for a large proportion of total sales revenue[99](index=99&type=chunk) - Libaoduo® was not selected in the tenth batch of national centralized procurement, leading to a price reduction of no less than **35%** in its market retail price, with 2025 sales revenue projected to decrease by over **50%** year-on-year, potentially resulting in single-product losses[102](index=102&type=chunk) [Outlook](index=33&type=section&id=前景) The Group will continue to uphold its biopharmaceutical development philosophy of innovative R&D, manufacturing, and marketing, strategically focusing on photodynamic technology and antibody-drug conjugates (ADCs); it will increase investment and rapidly advance R&D, registration, and industrialization to achieve a solid advantageous position in niche pharmaceutical markets and the capital market, aiming to become an innovator and leader in the biopharmaceutical industry - The Group will strategically focus on the photodynamic technology field, comprehensively developing from special devices to innovative drugs, rapidly advancing R&D, registration, and industrialization to achieve a comprehensive, long-term, absolute advantageous and leading position in this field[105](index=105&type=chunk) - The Group will rapidly advance the R&D and industrialization of antibody-drug conjugates (ADCs), actively participate in market competition, and expand industrial scale and capabilities[105](index=105&type=chunk) - The company will focus on strengthening and consolidating core technological advantages, enriching its product portfolio, promoting the industrialization of R&D achievements, and building a globally renowned photodynamic brand[79](index=79&type=chunk) [Corporate Governance, Environmental and Social Responsibility](index=34&type=section&id=公司治理%E3%80%81環境和社會責任) This section outlines the company's corporate governance practices, board and management changes, employee information, and social responsibility initiatives [Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=34&type=section&id=公司董事%E3%80%81監事%E3%80%81高級管理人員和核心技術人員變動情況) During the reporting period, there were no changes in the company's directors, supervisors, senior management, or core technical personnel - Not applicable[106](index=106&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=34&type=section&id=利潤分配或資本公積金轉增預案) The company's proposed semi-annual profit distribution plan is no distribution or capital reserve conversion | Whether to Distribute or Convert | No | | :--- | :--- | | Number of Bonus Shares per 10 Shares (shares) | Not applicable | | Dividend per 10 Shares (RMB) (tax inclusive) | Not applicable | | Number of Shares Converted from Capital Reserve per 10 Shares (shares) | Not applicable | [Status and Impact of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=34&type=section&id=公司股權激勵計劃%E3%80%81員工持股計劃或其他員工激勵措施的情況及其影響) For the six months ended June 30, 2025, the company had no existing effective incentive plans, employee stock ownership plans, or other incentive schemes - For the six months ended June 30, 2025, the Company had no existing effective incentive plans, employee stock ownership plans, or other incentive schemes[107](index=107&type=chunk) [Corporate Governance Practices](index=34&type=section&id=企業管治常規) The company has adopted the Corporate Governance Code in Appendix C1 of the Hong Kong Listing Rules; except for Code Provision C.2.1 (separation of Chairman and Chief Executive roles), the company has complied with the principles and code provisions set out in the Code during the reporting period; the company's directors have complied with the code of conduct for securities transactions - The Company has adopted the Corporate Governance Code in Appendix C1 of the Hong Kong Listing Rules[108](index=108&type=chunk) - Except for Code Provision C.2.1 (the roles of Chairman and Chief Executive should be separate), the principles and code provisions set out in the Code have been met during the reporting period[110](index=110&type=chunk) - Mr. Zhao Dajun serves as both Chairman and General Manager (Chief Executive), an arrangement the Board believes is more beneficial for the company's development at the current stage[111](index=111&type=chunk) - All directors confirmed compliance with the standards stipulated in the code of conduct during the reporting period[112](index=112&type=chunk) [Audit Committee](index=36&type=section&id=審核委員會) The company's Audit Committee is responsible for reviewing financial reports, internal controls, and corporate governance, and making recommendations to the Board; the committee comprises two independent non-executive directors and one non-executive director, with Mr. Lin Zhaorong serving as Chairman; the committee has reviewed the Group's unaudited interim results and report, deeming them compliant with applicable accounting standards and the Hong Kong Listing Rules - The Company's Audit Committee is responsible for auditing financial reports, reviewing internal controls and corporate governance, and making relevant recommendations to the Board[114](index=114&type=chunk) - The committee members consist of Mr. Lin Zhaorong (Chairman), Mr. Wang Hongguang (Independent Non-Executive Director), and Mr. Shen Bo (Non-Executive Director)[114](index=114&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results and report for the six months ended June 30, 2025, and believes they are prepared in compliance with applicable accounting standards and the Hong Kong Listing Rules, with sufficient disclosures made[114](index=114&type=chunk) [Independent Non-Executive Directors](index=36&type=section&id=獨立非執行董事) During the reporting period, the company fully complied with the Hong Kong Listing Rules regarding independent non-executive directors, and all independent non-executive directors confirmed their independence - During the reporting period, the Company fully complied with Rules 3.10(1), 3.10(2), and 3.21 of the Hong Kong Listing Rules regarding independent non-executive directors[115](index=115&type=chunk) [Independence of Independent Non-Executive Directors](index=36&type=section&id=獨立非執行董事的獨立性) In accordance with Listing Rule 3.13, each of the company's independent non-executive directors has confirmed their independence to the company, and the company considers them independent - In accordance with Listing Rule 3.13, each of the Company's independent non-executive directors has confirmed their independence to the Company. Based on the confirmation from the independent non-executive directors, the Company considers them independent[116](index=116&type=chunk) [Employees and Remuneration](index=36&type=section&id=僱員及薪酬) As of June 30, 2025, the Group had 899 employees, with staff costs of RMB 101,818,230, a 13.58% year-on-year decrease; the company offers competitive remuneration and benefits, adjusted based on market conditions and employee performance | Indicator | Jun 30, 2025 | Jun 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 899 | 913 | -1.53 | | Staff Costs (RMB) | 101,818,230 | 117,815,229 | -13.58 | - The Group provides competitive remuneration and benefits based on market conditions and employees' experience and qualifications, with performance-based compensation[117](index=117&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=36&type=section&id=購買%E3%80%81出售或贖回上市證券) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor did they hold any treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including treasury shares)[118](index=118&type=chunk) [Environmental Information of Listed Companies and their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=36&type=section&id=納入環境信息依法披露企業名單的上市公司及其主要子公司的環境信息情況) Not applicable - Not applicable[119](index=119&type=chunk) [Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc.](index=36&type=section&id=鞏固拓展脫貧攻堅成果%E3%80%81鄉村振興等工作具體情況) During the reporting period, the company's labor union directly procured agricultural products totaling RMB 61,425 from farmers in impoverished mountainous areas of Rongjiang County, Guizhou, contributing to rural revitalization - During the reporting period, the Company's labor union directly procured agricultural products totaling **RMB 61,425** from farmers in impoverished mountainous areas of Rongjiang County, Guizhou, actively contributing to rural revitalization and supporting farmers[119](index=119&type=chunk) [Other Significant Matters](index=37&type=section&id=其他重要事項) This section covers various significant matters including commitment fulfillment, related party transactions, use of raised funds, and other material events [Fulfillment of Commitments](index=37&type=section&id=一%E3%80%81承諾事項履行情況) As of June 30, 2025, except for commitments already fulfilled, there were no changes in the commitments made by the company's shareholders, related parties, and the company itself, and all parties involved complied with the relevant disclosed commitments - As of June 30, 2025, except for commitments already fulfilled, the aforementioned commitments remained unchanged, and all parties involved complied with the relevant disclosed commitments[121](index=121&type=chunk) [Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties during the Reporting Period](index=37&type=section&id=二%E3%80%81報告期內控股股東及其他關聯方非經營性佔用資金情況) Not applicable - Not applicable[122](index=122&type=chunk) [Irregular Guarantees](index=37&type=section&id=三%E3%80%81違規擔保情況) Not applicable - Not applicable[122](index=122&type=chunk) [Half-Year Report Audit Status](index=37&type=section&id=四%E3%80%81半年報審計情況) The financial information of the Group for the reporting period contained in this report has not been audited by the auditors - The financial information of the Group for the reporting period contained in this report has not been audited by the auditors[122](index=122&type=chunk) [Changes and Handling of Matters Related to Non-Standard Audit Opinions in the Previous Year's Annual Report](index=37&type=section&id=五%E3%80%81上年年度報告非標準審計意見涉及事項的變化及處理情況) Not applicable - Not applicable[123](index=123&type=chunk) [Matters Related to Bankruptcy Reorganization](index=37&type=section&id=六%E3%80%81破產重整相關事項) Not applicable - Not applicable[123](index=123&type=chunk) [Material Litigation and Arbitration Matters](index=37&type=section&id=七%E3%80%81重大訴訟%E3%80%81仲裁事項) During the reporting period, the Group had no material litigation or arbitration matters - During the reporting period, the Group had no material litigation or arbitration matters[123](index=123&type=chunk) [Listed Company and its Directors, Supervisors, Senior Management, Controlling Shareholders, Actual Controllers Suspected of Violations, Penalties, and Rectification](index=37&type=section&id=八%E3%80%81上市公司及其董事%E3%80%81監事%E3%80%81高級管理人員%E3%80%81控股股東%E3%80%81實際控制人涉嫌違法違規%E3%80%81受到處罰及整改情況) Not applicable - Not applicable[123](index=123&type=chunk) [Explanation of the Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers during the Reporting Period](index=37&type=section&id=九%E3%80%81報告期內公司及其控股股東%E3%80%81實際控制人誠信狀況的說明) Not applicable - Not applicable[123](index=123&type=chunk) [Material Related Party Transactions](index=38&type=section&id=十%E3%80%81重大關聯%EF%BC%88連%EF%BC%89交易) The company has ongoing related party transactions with Shanghai Pharmaceuticals Holding Co., Ltd., primarily involving sales and distribution agreements - The company has ongoing related party transactions with Shanghai Pharmaceuticals Holding Co., Ltd., primarily involving sales and distribution agreements[124](index=124&type=chunk) [Explanation of Progress in Use of Raised Funds](index=38&type=section&id=十一%E3%80%81募集資金使用進展說明) The company's net proceeds from its A-share listing in 2020 amounted to RMB 974.3239 million; as of June 30, 2025, cumulative utilized raised funds totaled RMB 842.3589 million, with a remaining balance of RMB 186.9575 million; the Hemoporfin US registration project has been extended to December 31, 2025, due to external environmental factors; the company uses temporarily idle raised funds for cash management, not exceeding RMB 180 million - The Company completed its initial public offering of A-shares and listing on the STAR Market of the Shanghai Stock Exchange on June 19, 2020, with net proceeds of **RMB 974.3239 million**[125](index=125&type=chunk) | Planned Project | Budgeted Use Amount (RMB millions) | Amount Used in Reporting Period (RMB millions) | Cumulative Utilized Amount (RMB millions) | Balance as of Jun 30, 2025 (RMB millions) | | :--- | :--- | :--- | :--- | :--- | | Hemoporfin US Registration Project | 230.00 | 7.9428 | 67.5988 | 162.4012 | | Biopharmaceutical Innovation R&D and Sustainable Development Project | 240.00 | – | 240.00 | – | | Acquisition of Minority Equity in Taizhou Fudan-Zhangjiang Project | 180.00 | – | 180.00 | – | | Over-raised Funds | – | – | 324.3239 | – | | Interest on Raised Funds | – | – | 30.4362 | 24.5563 | | Total | 650.00 | 7.9428 | 842.3589 | 186.9575 | - The "Hemoporfin US Registration Project" implementation period has been adjusted to December 31, 2025, due to external environmental factors[129](index=129&type=chunk) - The Company agreed to use temporarily idle raised funds not exceeding **RMB 180 million** for cash management[127](index=127&type=chunk) [Explanation of Other Significant Matters](index=39&type=section&id=十二%E3%80%81其他重大事項的說明) As of June 30, 2025, and up to the publication date of this report, the company has no other significant matters - As of June 30, 2025, and up to the publication date of this report, the Company has no other significant matters[128](index=128&type=chunk) [Share Changes and Shareholder Information](index=40&type=section&id=股份變動及股東情況) This section details changes in the company's share capital, information on major shareholders, and shareholdings of directors, supervisors, and senior management [Changes in Share Capital](index=40&type=section&id=一%E3%80%81股本變動情況) During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure - During the reporting period, there were no changes in the Company's total ordinary share capital or share capital structure[130](index=130&type=chunk) [Shareholder Information](index=40&type=section&id=二%E3%80%81股東情況) As of the end of the reporting period, the company had a total of 19,877 ordinary shareholders, comprising 19,737 A-share holders and 140 H-share holders; HKSCC NOMINEES LIMITED, Shanghai Pharmaceuticals Holding Co., Ltd., and Xinqi Phase II Venture Capital Enterprise were the top three shareholders; major shareholders Shanghai Industrial (Group) Co., Ltd. and Shanghai Pharmaceuticals collectively held 20.27% of the company's shares | Indicator | Quantity | | :--- | :--- | | Total Number of Ordinary Shareholders at Period End | 19,877 | | Of which: Number of A-share Shareholders | 19,737 | | Number of H-share Shareholders | 140 | | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | | :--- | :--- | :--- | | HKSCC NOMINEES LIMITED | 254,827,740 | 24.58 | | Shanghai Pharmaceuticals Holding Co., Ltd. | 210,142,560 | 20.27 | | Xinqi Phase II Venture Capital Enterprise | 156,892,912 | 15.14 | | Yang Zongmeng | 74,375,494 | 7.18 | | Wang Haibo | 56,099,327 | 5.41 | - Shanghai Industrial (Group) Co., Ltd. and Shanghai Pharmaceuticals collectively held **20.27%** of the company's shares[135](index=135&type=chunk) [Information on Directors, Supervisors, Senior Management, and Core Technical Personnel](index=42&type=section&id=三%E3%80%81董事%E3%80%81監事%E3%80%81高級管理人員和核心技術人員情況) During the reporting period, core technical personnel Wang Luochun's shareholding decreased by 452,625 shares; Directors Zhao Dajun, Xue Yan, and Supervisor Qu Yanan held company shares; the company has established and implemented the "Management System for Directors, Supervisors, and Senior Management Holding and Trading Company Shares," with no violations found during the reporting period | Name | Position | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | Change in Shares (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Luochun | Core Technical Personnel | 1,170,000 | 717,375 | -452,625 | Secondary market trading | | Name | Position | Share Class | Number of Shares Held (shares) | Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Zhao Dajun | Director | A-share | 15,620,710 | 1.51% | | Xue Yan | Director | A-share | 1,980,000 | 0.19% | | Xue Yan | Director | H-share | 50,000 | 0.00% | | Qu Yanan | Supervisor | A-share | 39,000 | 0.00% | - The Company has adopted the "Management System for Directors, Supervisors, and Senior Management Holding and Trading Company Shares"[139](index=139&type=chunk) - During the reporting period, all directors, supervisors, and relevant employees complied with the system, and no violations were found[140](index=140&type=chunk) [Consolidated Balance Sheet](index=44&type=section&id=合併資產負債表) As of June 30, 2025, the Group's total assets were RMB 2,541,453,272, a 1.74% decrease from the end of 2024; total current assets were RMB 1,593,438,095, and total non-current assets were RMB 948,015,177; total liabilities were RMB 261,015,209, a 7.19% decrease from the end of 2024; total equity attributable to parent company shareholders was RMB 2,279,821,312 | Indicator | Jun 30, 2025 (RMB) | Dec 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,541,453,272 | 2,586,502,623 | -1.74 | | Total Current Assets | 1,593,438,095 | 1,606,778,507 | -0.83 | | Total Non-Current Assets | 948,015,177 | 979,724,116 | -3.24 | | Total Liabilities | 261,015,209 | 281,225,518 | -7.19 | | Total Equity Attributable to Parent Company Shareholders | 2,279,821,312 | 2,304,567,412 | -1.07 | [Company Balance Sheet](index=46&type=section&id=公司資產負債表) As of June 30, 2025, the Company's total assets were RMB 2,464,163,363, a 1.06% decrease from the end of 2024; total current assets were RMB 1,463,422,499, and total non-current assets were RMB 1,000,740,864; total liabilities were RMB 205,128,063, a 5.50% decrease from the end of 2024; total shareholders' equity was RMB 2,259,035,300 | Indicator | Jun 30, 2025 (RMB) | Dec 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,464,163,363 | 2,490,546,568 | -1.06 | | Total Current Assets | 1,463,422,499 | 1,472,419,765 | -0.61 | | Total Non-Current Assets | 1,000,740,864 | 1,018,126,803 | -1.71 | | Total Liabilities | 205,128,063 | 217,064,267 | -5.50 | | Total Shareholders' Equity | 2,259,035,300 | 2,273,482,301 | -0.63 | [Consolidated Income Statement](index=48&type=section&id=合併利潤表) For the six months ended June 30, 2025, the Group achieved operating revenue of RMB 390,083,112, a 4.42% year-on-year decrease; net profit was RMB 5,622,200, a significant 92.01% year-on-year decrease; net profit attributable to parent company shareholders was RMB 5,715,142, a 91.89% year-on-year decrease; basic earnings per share were RMB 0.01 | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 390,083,112 | 408,123,863 | -4.42 | | Operating Profit | 5,726,060 | 72,223,824 | -92.07 | | Total Profit | 5,622,200 | 72,186,951 | -92.21 | | Net Profit | 5,622,200 | 70,344,013 | -92.01 | | Net Profit Attributable to Parent Company Shareholders | 5,715,142 | 70,473,064 | -91.89 | | Basic Earnings Per Share (RMB) | 0.01 | 0.07 | -85.71 | [Company Income Statement](index=50&type=section&id=公司利潤表) For the six months ended June 30, 2025, the Company achieved operating revenue of RMB 355,263,421, a 4.26% year-on-year increase; net profit was RMB 15,917,475, a 56.82% year-on-year decrease | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 355,263,421 | 340,740,051 | 4.26 | | Operating Profit | 15,955,880 | 37,165,160 | -57.07 | | Total Profit | 15,917,475 | 36,864,504 | -56.82 | | Net Profit | 15,917,475 | 36,864,504 | -56.82 | [Consolidated Cash Flow Statement](index=51&type=section&id=合併現金流量表) For the six months ended June 30, 2025, the Group's net cash flow from operating activities was RMB 62,212,859, a 125.00% year-on-year increase; net cash flow used in investing activities was RMB (8,277,485), compared to a net inflow in the prior year; net cash flow used in financing activities was RMB (3,638,269); the net increase in cash was RMB 50,205,176 | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 62,212,859 | 27,649,549 | 125.00 | | Net Cash Flow (Used in)/Generated from Investing Activities | (8,277,485) | 4,326,668 | -291.29 | | Net Cash Flow Used in Financing Activities | (3,638,269) | (5,522,836) | -34.13 | | Net Increase in Cash | 50,205,176 | 26,585,009 | 88.85 | | Cash Balance at Period End | 1,106,490,805 | 1,222,481,006 | -9.49 | [Company Cash Flow Statement](index=53&type=section&id=公司現金流量表) For the six months ended June 30, 2025, the Company's net cash flow from operating activities was RMB 53,254,422, compared to a net outflow in the prior year; net cash flow from investing activities was RMB 3,289,015, an 89.84% year-on-year decrease; net cash flow used in financing activities was RMB (3,638,269); the net increase in cash was RMB 52,905,168 | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow Generated from/(Used in) Operating Activities | 53,254,422 | (1,236,887) | 4410.67 | | Net Cash Flow Generated from Investing Activities | 3,289,015 | 32,387,174 | -89.84 | | Net Cash Flow Used in Financing Activities | (3,638,269) | (5,489,073) | -33.71 | | Net Increase in Cash | 52,905,168 | 25,661,214 | 106.17 | | Cash Balance at Period End | 996,245,555 | 1,092,955,646 | -8.85 | [Consolidated Statement of Changes in Equity](index=55&type=section&id=合併股東權益變動表) For the six months ended June 30, 2025, the Group's total comprehensive income attributable to parent company shareholders was RMB 5,618,376, a significant 92.05% year-on-year decrease; retained earnings decreased by RMB 31,097,163 due to dividend distribution | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Parent Company Shareholders | 5,715,142 | 70,473,064 | -91.89 | | Total Comprehensive Income Attributable to Parent Company Shareholders | 5,618,376 | 70,613,805 | -92.05 | | Distribution to Shareholders | (31,097,163) | (72,560,047) | -57.00 | [Company Statement of Changes in Equity](index=57&type=section&id=公司股東權益變動表) For the six months ended June 30, 2025, the Company's net profit was RMB 15,917,475, a 56.82% year-on-year decrease; retained earnings decreased by RMB 31,097,163 due to dividend distribution | Indicator | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Profit | 15,917,475 | 36,864,504 | -56.82 | | Distribution to Shareholders | (31,097,163) | (72,560,047) | -57.00 | [Notes to Financial Statements](index=58&type=section&id=財務報表附註) This section provides detailed explanations of the Group's significant accounting policies, estimates, tax information, and specific financial statement items [Company Information](index=58&type=section&id=一%20公司的基本情況) Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. was established in 1996, and after several capital changes, its registered capital and share capital amounted to RMB 103,657,210 as of May 11, 2023; the company primarily engages in innovative R&D, manufacturing, and marketing of biopharmaceuticals - Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. was established in the People's Republic of China on November 11, 1996[155](index=155&type=chunk) - As of May 11, 2023, the company's registered capital and share capital changed to **RMB 103,657,210**[158](index=158&type=chunk) - The Group's main business activities include researching, developing, and selling self-developed biopharmaceutical knowledge in China, providing contract research services to clients, manufacturing and selling pharmaceutical and diagnostic products, and offering other medical services[158](index=158&type=chunk) [Significant Accounting Policies and Estimates](index=59&type=section&id=二%20主要會計政策和會計估計) The Group's financial statements are prepared in accordance with "Enterprise Accounting Standards" and related regulations, on a going concern basis; key accounting policies and estimates include financial instrument classification and measurement, inventory valuation, fixed asset depreciation, intangible asset amortization, R&D expenditure capitalization, revenue recognition, government grants, deferred income tax assets and liabilities, and lease accounting; critical judgments and assumptions involve government grant recognition, expected credit loss measurement, and income tax and deferred income tax asset recognition - These financial statements are prepared in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and related regulations, on a going concern basis[163](index=163&type=chunk)[164](index=164&type=chunk) - The Group classifies financial assets into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, based on the business model for managing financial assets and the characteristics of contractual cash flows[177](index=177&type=chunk) - Expenditures in the research phase are recognized as current period expenses when incurred; expenditures in the development phase are capitalized if they simultaneously meet the conditions of technical feasibility, management's intention, generation of economic benefits, resource support, and reliable measurement[212](index=212&type=chunk)[214](index=214&type=chunk) - The Group recognizes loss provisions for financial assets measured at amortized cost based on expected credit losses[181](index=181&type=chunk) - The Company and some subsidiaries are recognized as high-tech enterprises, calculating income tax at a preferential rate of **15%**, and it is assumed that high-tech enterprise recognition will continue in future years[241](index=241&type=chunk) [Taxation](index=73&type=section&id=三%20稅項) The Group primarily applies corporate income tax, value-added tax, and urban maintenance and construction tax; the company, Taizhou Pharmaceutical, and Suyuan Bio are all recognized as high-tech enterprises, applying a preferential corporate income tax rate of 15%; Fengyi Holdings is subject to Hong Kong profits tax, but no assessable profits were generated during the reporting period; the company and Taizhou Pharmaceutical, as advanced manufacturing enterprises, benefit from a VAT additional deduction policy | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Corporate Income Tax | Taxable Income | 15% and 16.5% | | Value-Added Tax | Taxable Value Added | 13%, 6%, and 3% | | Urban Maintenance and Construction Tax | Amount of VAT Paid | 5% and 7% | - The Company, Taizhou Fudan-Zhangjiang Pharmaceutical Co., Ltd., and Shanghai Suyuan Biotechnology Co., Ltd. are all recognized as high-tech enterprises, applying a **15%** corporate income tax rate[242](index=242&type=chunk)[243](index=243&type=chunk) - Fengyi (Hong Kong) Holdings Limited did not generate assessable profits during the reporting period, thus no Hong Kong profits tax was accrued[243](index=243&type=chunk) - The Company and Taizhou Pharmaceutical, as advanced manufacturing enterprises, enjoy an additional **5%** deduction on current deductible input VAT from January 1, 2023, to December 31, 2027, to reduce their VAT payable[244](index=244&type=chunk) [Notes to Consolidated Financial Statements](index=74&type=section&id=五%20合併財務報表附註) This section details the specific circumstances of each item in the consolidated financial statements; it covers the composition, changes, and impairment provisions for current assets and liabilities such as cash and bank balances, notes receivable, accounts receivable, other receivables, and inventories; non-current assets like long-term equity investments, fixed assets, intangible assets, and construction in progress are detailed regarding their carrying value, depreciation, amortization, and impairment; additionally, it itemizes various expenses (selling, administrative, R&D, finance), other income, investment income, credit and asset impairment losses, income tax expense, and the composition and reasons for changes in earnings per share; supplementary cash flo

[Management Discussion and Analysis](index=1&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Company Overview and Performance Summary](index=1&type=section&id=%E6%A6%82%E8%A7%88) Hang Fook Holdings primarily manufactures and trades apparel for international brands and invests in securities, with H1 2025 revenue down **69.0%** and gross profit down **89.7%**, leading to a significantly widened loss due to reduced orders, macroeconomic pressures, and idle facility costs - Core businesses include manufacturing and trading apparel products for international brands, utilizing the Heshan facility and engaging overseas subcontractors. The securities investment business involves trading listed securities on the Hong Kong Stock Exchange, adopting a conservative investment strategy during the review period[4](index=4&type=chunk) Key Financial Data for H1 2025 (Consolidated Statement) | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 86.9 | 280.8 | **-69.0%** | | Gross Profit | 3.3 | 32.1 | **-89.7%** | | Gross Margin | **3.8%** | **11.4%** | **-7.6 ppt** | | Loss for the Period | **(29.7)** | **(12.2)** | **143.4% (loss widened)** | | Loss Per Share (HK cents) | **(3.30)** | **(1.35)** | **144.4% (loss widened)** | - Key reasons for reduced revenue and gross profit include a significant decrease in orders from major US and European customers (due to changes in customer purchasing strategies and macroeconomic headwinds); a decline in gross margin (due to continuous inflationary pressure on supply chain and subcontractor pricing, and reduced sales volume of higher-margin children's wear); and the impact of idle costs at the Heshan facility (which has had no further production orders since completing existing orders in May 2024)[5](index=5&type=chunk)[6](index=6&type=chunk) [Market and Business Review](index=2&type=section&id=%E5%B8%82%E5%A0%B4%E5%8F%8A%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the performance of the Group's two business segments, with the Garment Manufacturing and Trading segment experiencing significant decline and shifting to overseas subcontracting, while the Securities Investment segment maintained a cautious strategy with no trading activities [Garment Manufacturing and Trading Segment](index=2&type=section&id=%E6%88%90%E8%A1%A3%E8%A3%BD%E9%80%A0%E5%8F%8A%E8%B2%BF%E6%98%93%E5%88%86%E9%83%A8) The Garment Manufacturing and Trading segment faced macroeconomic challenges in H1 2025, with revenue down **69.0%** to **HKD 86.9 million** and loss up to **HKD 22.7 million**, shifting production to overseas subcontractors after Heshan facility cessation - Market challenges: The garment manufacturing industry faces macroeconomic challenges such as weak consumer demand, rising costs, and cautious inventory strategies by global retailers[7](index=7&type=chunk) Garment Manufacturing and Trading Segment Revenue and Loss | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | | :--- | :--- | :--- | | Revenue | 86.9 | 280.8 | | Loss | **(22.7)** | **(3.4)** | - Production strategy adjustment: The Heshan facility ceased production in May 2024, with all production orders reallocated to subcontracting partners in Cambodia and Indonesia, while the Heshan facility retains administrative and sample-making functions[8](index=8&type=chunk) [Securities Investment Segment](index=2&type=section&id=%E8%AD%89%E5%88%B8%E6%8A%95%E8%B3%87%E5%88%86%E9%83%A8) Given global market volatility and stagnant past performance, the Securities Investment segment maintained a cautious and conservative approach in H1 2025, holding or trading no listed securities during the period, and thus recording no fair value changes - Investment strategy: A cautious and conservative approach was maintained in H1 2025 due to global market volatility and stagnant past performance[9](index=9&type=chunk) - Trading activities and fair value changes: No listed securities were held or traded during the period, and no fair value changes were recorded (2024: nil)[9](index=9&type=chunk) [Financial Review](index=3&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section details the Group's financial performance, including expense changes, liquidity, capital expenditure, foreign exchange risk management, credit policy, asset pledges, and contingent liabilities, reflecting prudent financial management and a one-off restructuring for Heshan facility cessation [Administrative and Other Operating Expenses](index=3&type=section&id=%E8%A1%8C%E6%94%BF%E5%8F%8A%E5%85%B6%E4%BB%96%E7%87%9F%E9%81%8B%E9%96%8B%E6%94%AF) Administrative and other operating expenses decreased by **13.7%** to **HKD 30.3 million**, primarily because a one-off restructuring cost of approximately **HKD 3.9 million** related to the Heshan facility's production cessation in 2024 did not recur in 2025 Administrative and Other Operating Expenses | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Expenses | **30.3** | **35.2** | **-13.7%** | - Main reason: A one-off restructuring cost of approximately **HKD 3.9 million** related to the Heshan facility's production cessation in 2024 was not incurred in 2025[10](index=10&type=chunk) [Selling and Distribution Expenses](index=3&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses as a percentage of garment manufacturing and trading revenue increased to **2.2%**, primarily due to higher logistics costs from placing more production orders with overseas subcontractors and increased sample development fees to secure additional orders Selling and Distribution Expenses as a Percentage of Revenue | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Percentage | **2.2%** | **1.9%** | - Main reasons: Higher logistics costs from placing more production orders with overseas subcontractors, and increased sample development fees to secure additional orders[11](index=11&type=chunk) [Finance Costs](index=3&type=section&id=%E8%9E%8D%E8%B3%87%E9%96%8B%E6%94%AF) Finance costs significantly decreased by **76.2%** to approximately **HKD 1.2 million**, primarily due to the repayment of bank borrowings in 2024 Finance Costs | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Expenses | **1.2** | **5.1** | **-76.2%** | - Main reason: Repayment of bank borrowings in 2024[12](index=12&type=chunk) [Net Other Income, Gains and Losses](index=3&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D%E6%B7%A8%E9%A1%8D) Net other income, gains and losses amounted to approximately **HKD 5 thousand**, a significant decrease from **HKD 0.7 million** in H1 2024, primarily derived from compensation for customer order cancellations Net Other Income, Gains and Losses | Metric | H1 2025 (thousand HKD) | H1 2024 (thousand HKD) | | :--- | :--- | :--- | | Net Amount | **5** | **700** | - Main source: Compensation for customer order cancellations[13](index=13&type=chunk) [Treasury Policy, Liquidity and Financial Resources](index=3&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96%E3%80%81%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains a prudent financial management approach and a healthy financial position, with cash and bank balances of **HKD 88.2 million**, working capital of **HKD 83.2 million**, and a current ratio of **2.2** as of June 30, 2025, and the Heshan subsidiary received an unsecured, interest-free short-term loan of **HKD 47.8 million** from a director - Financial position: Maintains prudent financial management and a healthy financial position[14](index=14&type=chunk) Liquidity Indicators | Metric | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | | :--- | :--- | :--- | | Cash and Bank Balances | **88.2** | **111.0** | | Working Capital | **83.2** | **106.2** | | Current Ratio | **2.2** | **2.5** | - Subsidiary loan: A director advanced a short-term loan of **HKD 47.8 million** to the Heshan subsidiary, which is unsecured, interest-free, and has no fixed repayment terms[14](index=14&type=chunk) [Capital Expenditure](index=4&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) During the review period, the Group's total capital expenditure was **HKD 0.3 million**, a significant decrease from **HKD 2.1 million** in 2024, primarily related to the replacement of office equipment Capital Expenditure | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | | :--- | :--- | :--- | | Total Amount | **0.3** | **2.1** | - Main use: Replacement of office equipment[15](index=15&type=chunk) [Foreign Exchange Risk](index=4&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group's sales are primarily transacted in USD, while operating expenses are mainly settled in HKD, RMB, and USD, resulting in low USD foreign exchange risk due to the HKD's peg to the USD, and the Group will closely monitor other foreign currency fluctuations and enter into foreign currency forward contracts when necessary to mitigate risks - Transaction currencies: Sales are primarily transacted in USD, while operating expenses are mainly settled in HKD, RMB, and USD[16](index=16&type=chunk) - Risk management: HKD is pegged to USD, resulting in lower USD foreign exchange risk; other foreign currency fluctuations will be closely monitored, and foreign currency forward contracts will be entered into when necessary[16](index=16&type=chunk) [Credit Policy](index=4&type=section&id=%E4%BF%A1%E8%B2%B8%E6%94%BF%E7%AD%96) The Group conducts business transactions with long-term stable customers on an open account basis, regularly reviews customer credit ratings, and adjusts credit limits as necessary - Credit period: Customers are granted credit periods ranging from **30 to 90 days**[44](index=44&type=chunk) - Management: Customer credit ratings are regularly reviewed, and credit limits are adjusted as necessary[17](index=17&type=chunk) [Pledge of Assets](index=4&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had no pledged assets, following the full release on January 21, 2025, of Heshan land use rights and buildings previously pledged as collateral for a subsidiary director's loan on December 31, 2024 - June 30, 2025: No assets were pledged[18](index=18&type=chunk) - Historical situation: On December 31, 2024, Heshan land use rights (**HKD 7.2 million**) and buildings (**HKD 37.3 million**) were pledged as collateral for a subsidiary director's loan, which was fully released on January 21, 2025[18](index=18&type=chunk) [Contingent Liabilities](index=4&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, and December 31, 2024, the Group had no contingent liabilities - Contingent liabilities: As of June 30, 2025, and December 31, 2024, the Group had no contingent liabilities[20](index=20&type=chunk) [Human Resources and Remuneration Policy](index=5&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group is committed to providing a harmonious work environment, enhancing employee professional skills through training, and determining remuneration based on market practices, individual experience, and performance, with discretionary bonuses to attract and retain talent, resulting in a decrease in full-time employees to **185** as of June 30, 2025, due to streamlining Heshan facility operations - Employee development: Provides a harmonious work environment, valuable career opportunities, and professional skills training programs[21](index=21&type=chunk) - Remuneration: Determined based on market practices, individual experience, and performance, with discretionary bonuses awarded[21](index=21&type=chunk) Number of Full-time Employees | Date | Number of Employees | | :--- | :--- | | June 30, 2025 | **185** | | December 31, 2024 | **213** | Reason for decrease: Streamlining of Heshan facility operations [Environmental, Social and Governance (ESG) Responsibility](index=5&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E4%BC%81%E6%A5%AD%E8%B2%AC%E4%BB%BB) The Group is committed to maintaining high ESG standards, with the Board assuming overall responsibility for effective risk management and internal control systems, and the management team overseeing ESG strategy implementation, risk alerts, and reporting to the Board, while complying with all relevant laws and regulations and encouraging stakeholder participation in environmental and social activities - ESG commitment: Committed to maintaining the highest standards of environmental and social responsibility to ensure business sustainability[22](index=22&type=chunk) - Board responsibilities: Assumes overall responsibility for ESG strategy, ensuring effective risk management and internal control systems[22](index=22&type=chunk) - Compliance: For the six months ended June 30, 2025, the Group complied with all relevant environmental and social laws and regulations related to its business operations[23](index=23&type=chunk) [Business Outlook](index=5&type=section&id=%E5%89%8D%E6%99%AF) The global economic outlook remains uncertain, affected by geopolitical tensions, currency fluctuations, and weak consumer sentiment, particularly in the US and European markets, with US tariffs on imported goods introducing uncertainty, prompting the Group to remain cautious, monitor market developments, and continue strategic initiatives including transitioning to Southeast Asian subcontracting and investing in automation and sustainability - Macroeconomic challenges: The global economic outlook is uncertain, affected by geopolitical tensions, currency fluctuations, and weak consumer sentiment in the US and European markets[24](index=24&type=chunk) - Trade policy impact: US tariffs on imported goods create uncertainty, potentially affecting sourcing preferences, cost competitiveness, and order flow[25](index=25&type=chunk) - Strategic responses: Transitioning to Southeast Asian subcontracting to enhance cost flexibility and geographical diversification; evaluating potential opportunities to invest in proprietary facilities in ASEAN countries; continuously investing in automation, production tracking, and sustainability programs to enhance competitiveness[25](index=25&type=chunk)[26](index=26&type=chunk) [Dividend Policy](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - Interim dividend: The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[27](index=27&type=chunk)[47](index=47&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) For the six months ended June 30, 2025, the Group recorded revenue of **HKD 86,947 thousand**, gross profit of **HKD 3,349 thousand**, loss for the period of **HKD 29,737 thousand**, and basic and diluted loss per share of **3.30 HK cents** Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (thousand HKD) | H1 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | **86,947** | **280,835** | | Cost of Sales | **(83,598)** | **(248,697)** | | Gross Profit | **3,349** | **32,138** | | Loss Before Tax | **(29,737)** | **(12,168)** | | Loss for the Period | **(29,737)** | **(12,168)** | | Loss Per Share (HK cents) | **(3.30)** | **(1.35)** | [Condensed Consolidated Statement of Financial Position](index=8&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's non-current assets were **HKD 54,547 thousand**, current assets were **HKD 154,828 thousand**, current liabilities were **HKD 71,580 thousand**, and net assets were **HKD 117,924 thousand** Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Non-current Assets | **54,547** | **60,402** | | Current Assets | **154,828** | **179,157** | | Current Liabilities | **71,580** | **72,921** | | Net Current Assets | **83,248** | **106,236** | | Net Assets | **117,924** | **147,923** | | Total Equity | **117,924** | **147,923** | [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Basis of Preparation and Principal Accounting Policies](index=10&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix 16 of the Listing Rules issued by the Hong Kong Institute of Certified Public Accountants, adopting the historical cost principle, and the newly applied revised Hong Kong Financial Reporting Standards had no significant impact on financial position or performance - Basis of preparation: Prepared in accordance with Hong Kong Accounting Standard 34 and Appendix 16 of the Listing Rules issued by the Hong Kong Institute of Certified Public Accountants[31](index=31&type=chunk) - Accounting principles: Prepared on a historical cost basis, except for buildings and financial instruments measured at fair value[32](index=32&type=chunk) - Application of new standards: Revised Hong Kong Financial Reporting Standards were applied for the first time, but had no significant impact on the financial position or performance for the current and prior periods[32](index=32&type=chunk)[33](index=33&type=chunk) [Revenue and Segment Information](index=10&type=section&id=3.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's revenue primarily stems from the Garment Manufacturing and Trading segment, which generated **HKD 86,947 thousand** in H1 2025, while the Securities Investment segment had no external revenue, with the Garment Manufacturing and Trading segment recording a loss of **HKD 22,678 thousand**, and the Securities Investment segment recording a loss of **HKD 1,109 thousand** - Revenue source: Primarily from the Garment Manufacturing and Trading segment, which generated **HKD 86,947 thousand** in H1 2025[35](index=35&type=chunk)[38](index=38&type=chunk) Segment Revenue and Loss | Segment | H1 2025 Revenue (thousand HKD) | H1 2025 Loss (thousand HKD) | H1 2024 Revenue (thousand HKD) | H1 2024 Loss (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Garment Manufacturing and Trading | **86,947** | **(22,678)** | **280,835** | **(3,443)** | | Securities Investment | – | **(1,109)** | – | **(1,964)** | | **Total** | **86,947** | **(23,787)** | **280,835** | **(5,407)** | [Geographical Information](index=12&type=section&id=%E5%9C%B0%E5%9F%9F%E8%B3%87%E6%96%99) The Group's external customer revenue primarily originates from the US and Europe, while non-current assets are mainly located in Mainland China and Hong Kong, with revenue from the US and Europe significantly decreasing in H1 2025 External Customer Revenue (by Customer Location) | Region | H1 2025 (thousand HKD) | H1 2024 (thousand HKD) | | :--- | :--- | :--- | | United States | **38,697** | **143,501** | | Europe | **28,932** | **98,895** | | Hong Kong | **6,061** | **14,245** | | Other Regions | **13,257** | **24,194** | | **Total** | **86,947** | **280,835** | Non-current Assets (by Asset Location) | Region | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Mainland China | **44,732** | **50,007** | | Hong Kong | **6,633** | **6,894** | | Other Regions | **2,863** | **3,078** | | **Total** | **54,228** | **59,979** | [Loss Before Tax](index=12&type=section&id=4.%20%E9%99%A4%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D) Loss before tax is stated after deducting depreciation of right-of-use assets of **HKD 993 thousand** and depreciation of property, plant and equipment of **HKD 5,291 thousand** Depreciation Expenses | Item | H1 2025 (thousand HKD) | H1 2024 (thousand HKD) | | :--- | :--- | :--- | | Depreciation of Right-of-Use Assets | **993** | **1,026** | | Depreciation of Property, Plant and Equipment | **5,291** | **6,429** | [Income Tax Expense](index=12&type=section&id=5.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The Group had no assessable profits subject to Hong Kong Profits Tax and China Corporate Income Tax in both H1 2025 and H1 2024, thus no related provision was made - Income tax provision: No income tax provision was made as there were no assessable profits in Hong Kong and Mainland China[42](index=42&type=chunk) [Loss Per Share](index=13&type=section&id=6.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, basic and diluted loss per share was **3.30 HK cents**, calculated based on a loss attributable to equity holders of the Group of **HKD 29,737 thousand** and a weighted average of **899,846 thousand** ordinary shares Basis for Loss Per Share Calculation | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss attributable to equity holders of the Group (thousand HKD) | **(29,737)** | **(12,168)** | | Weighted average number of ordinary shares (thousand shares) | **899,846** | **899,846** | | Basic and diluted loss per share (HK cents) | **(3.30)** | **(1.35)** | - Diluted loss: Diluted loss per share is not presented as there were no outstanding potential ordinary shares for both periods[43](index=43&type=chunk) [Trade and Other Receivables](index=13&type=section&id=7.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables amounted to **HKD 30,211 thousand**, with trade receivables at **HKD 14,857 thousand**, and the aging analysis of trade receivables shows that amounts within **30 days** constitute the vast majority Composition of Receivables | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Trade Receivables | **14,857** | **26,189** | | Deposits and Other Receivables | **3,888** | **3,480** | | Prepayments | **11,466** | **1,248** | | **Total** | **30,211** | **30,917** | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 30 days | **13,636** | **21,956** | | 31 to 60 days | **644** | **2,036** | | 61 to 90 days | **528** | **2,197** | | Over 90 days | **49** | – | | **Total** | **14,857** | **26,189** | [Trade and Other Payables](index=14&type=section&id=8.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables amounted to **HKD 22,370 thousand**, with trade payables at **HKD 17,153 thousand**, and the aging analysis of trade payables shows that amounts within **30 days** constitute the major portion Composition of Payables | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Trade Payables | **17,153** | **19,424** | | Accruals and Other Payables | **5,217** | **11,275** | | **Total** | **22,370** | **30,699** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 30 days | **13,387** | **15,891** | | 31 to 60 days | **3,548** | **1,952** | | 61 to 90 days | **218** | **1,386** | | Over 90 days | – | **195** | | **Total** | **17,153** | **19,424** | [Dividends](index=14&type=section&id=9.%20%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - Interim dividend: The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[47](index=47&type=chunk) [Other Information](index=4&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Events After the Reporting Period](index=4&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the date of this announcement, the Board is not aware of any significant events occurring after the review period - Events after the reporting period: As of the date of this announcement, the Board is not aware of any significant events occurring after the review period[19](index=19&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=15&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Securities transactions: During the review period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[48](index=48&type=chunk) [Review of Interim Results](index=15&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, with the committee comprising three independent non-executive directors - Review status: The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[49](index=49&type=chunk) - Committee composition: Comprises three independent non-executive directors, including Mr. Cheng Wai Hei (Chairman), Mr. Lam Chi Wing, and Ms. Li Qian[49](index=49&type=chunk) [Corporate Governance Code and Compliance](index=15&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) During the review period, the Group complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, except for code provision C.2.1 regarding the Chief Executive Officer, whose duties are performed by executive directors on a rotational basis, an arrangement the Board believes ensures effective operation and a balance of power - Corporate Governance Code compliance: The Group complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, except for code provision C.2.1[50](index=50&type=chunk) - Chief Executive Officer position: No CEO has been appointed, and the role and functions are performed by executive directors on a rotational basis[50](index=50&type=chunk) - Board's view: The Board believes the current arrangement ensures a balance of power, facilitates prompt decision-making and execution, and effectively achieves company objectives[51](index=51&type=chunk) - Listing Rules compliance: Except for the disclosed matters, the Group has complied with the requirements of the Listing Rules[52](index=52&type=chunk) [Directors' Securities Transactions](index=16&type=section&id=%E8%91%A3%E4%BA%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The Group has adopted a code of conduct for directors' securities transactions, with standards no less exacting than those set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the relevant code provisions during the review period - Code of conduct: A code of conduct for directors' securities transactions has been adopted, with standards no less exacting than those set out in Appendix C3 of the Listing Rules[53](index=53&type=chunk) - Compliance confirmation: All directors have confirmed compliance with the relevant code provisions during the review period[53](index=53&type=chunk) [Publication of Interim Results and Interim Report](index=16&type=section&id=%E5%88%8A%E7%99%BB%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the Company, and the interim report, containing information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course - Publication platforms: The interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the Company[54](index=54&type=chunk) - Interim report: The interim report, containing information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course[54](index=54&type=chunk)

[Chairman's Report](index=1&type=section&id=Chairman's%20Report) [Business Review](index=1&type=section&id=Business%20Review) In H1 2025, the Group faced external challenges from global trade friction, geopolitical conflicts, a sluggish Hong Kong shipping industry, and a deteriorating mainland real estate market, impacting its freight logistics and cross-boundary passenger transport businesses. The Group actively responded by deepening market potential, strengthening collaboration, and enhancing service capabilities, achieving counter-trend growth in container and bulk cargo throughput and improving passenger transport competitiveness - Global trade tariff wars, geopolitical conflicts, and increased world economic uncertainty made global trade recovery difficult, leading to a multi-year low in Hong Kong's shipping industry and container throughput[4](index=4&type=chunk) - The continuous downturn in China's mainland real estate market worsened the sand and gravel bulk cargo market, and the opening of the Shenzhen-Zhongshan Link diverted cross-boundary passenger traffic in the Greater Bay Area, significantly impacting the Group's freight logistics and cross-boundary passenger transport businesses[4](index=4&type=chunk) - The Group actively responded by exploring market potential, strengthening cooperation with major manufacturing clients, developing engineering logistics business, optimizing port terminal layouts, and accelerating the cultivation of freight forwarding outlets in Vietnam, a Belt and Road country[5](index=5&type=chunk) - For passenger transport, the Group launched combined packages for cross-boundary water transport, Hong Kong local ferry, and Victoria Harbour tours, enhancing online and offline marketing to increase market share and marine tourism brand influence[5](index=5&type=chunk) - Through strengthened collaboration, the Group's business developed steadily, with container throughput increasing by **7.1%** year-on-year and bulk cargo throughput increasing by **2.7%** year-on-year, both against the trend[6](index=6&type=chunk) - Pearl River Passenger Transport enhanced brand awareness and customer experience through joint marketing; Oriental Pearl achieved significant growth in Victoria Harbour tour passengers through e-commerce platform cooperation and live streaming promotions; New World First Ferry continued to improve service capabilities and promote vessel renewal[7](index=7&type=chunk) - Sun Kong Petroleum commissioned its newly built lubricating oil tanker "Xin Hu" and acquired three diesel tankers, enhancing its influence in the local Hong Kong market[7](index=7&type=chunk) - The Group's investment in the Hong Kong-Zhuhai-Macao Bridge Shuttle Bus project also achieved good results, benefiting from increased passenger volume[7](index=7&type=chunk) [Future Outlook](index=4&type=section&id=Future%20Outlook) For H2, the Group will focus on 'seeking progress while maintaining stability, expanding scale, innovation-driven, and overseas extension,' adhering to 'project-driven, capital-driven, and innovation-driven' strategies, with a focus on Hong Kong, Macau, and overseas markets. It will accelerate integrated operations, expand logistics business, transform cross-boundary passenger transport, and deepen local business development - H2 work guidelines: seeking progress while maintaining stability, expanding scale, innovation-driven, overseas extension[9](index=9&type=chunk) - Development strategies: project-driven, capital-driven, innovation-driven, with a focus on breaking into Hong Kong, Macau, and overseas markets[9](index=9&type=chunk) - Accelerate integrated operations, establish a contract logistics business unit, build a modern integrated logistics service platform, and deepen the integrated reform of cross-boundary water passenger transport business[10](index=10&type=chunk) - Intensify logistics business development, deeply cultivate Hong Kong airport engineering and Macau reclamation projects, vigorously develop MIC transport projects, strategically plan duty-free, e-commerce, and air freight logistics, and improve the "Belt and Road" network business layout[11](index=11&type=chunk) - Accelerate investment and construction of Sanbu New Port Terminal and Longtouzhai Terminal, continuously strengthen digital terminal construction, and explore expanding "Belt and Road" overseas markets through mergers and acquisitions[11](index=11&type=chunk) - Accelerate the transformation of cross-boundary passenger transport business, optimize route layouts, deeply integrate into the Hong Kong International Airport ecosystem, strive for more high-quality service projects, and create "cross-boundary transport + tourism" combined products[12](index=12&type=chunk) - Strengthen the depth of local business development, actively participate in municipal project bidding, vigorously develop Victoria Harbour tour projects, expand non-ticket revenue, orderly advance vessel renewal, and promote a "water + land" integrated fuel supply model[13](index=13&type=chunk) [Unaudited Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) [Unaudited Consolidated Income Statement](index=6&type=section&id=Unaudited%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group's turnover decreased by 5.3% to HK$1,315,108 thousand, and profit for the period significantly dropped by 54.5% to HK$32,532 thousand, primarily due to reduced gross profit and lower finance income Consolidated Income Statement Key Data (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 1,315,108 | 1,388,711 | -5.3% | | Cost of sales/services | (1,243,338) | (1,280,558) | -2.9% | | Gross profit | 71,770 | 108,153 | -33.6% | | Other income | 115,095 | 94,038 | 22.4% | | General and administrative expenses | (155,950) | (141,772) | 10.0% | | Profit from operations | 32,777 | 64,723 | -49.3% | | Finance income | 4,444 | 11,927 | -62.8% | | Finance costs | (9,179) | (12,867) | -28.6% | | Profit before income tax | 41,613 | 85,107 | -51.1% | | Income tax expense | (9,081) | (13,601) | -33.2% | | Profit for the period | 32,532 | 71,506 | -54.5% | | Profit attributable to equity holders of the Company | 26,662 | 67,115 | -60.3% | | Non-controlling interests | 5,870 | 4,391 | 33.7% | | Basic and diluted earnings per share (HK cents) | 2.38 | 5.99 | -60.3% | [Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income for the period was HK$70,122 thousand, a 31.3% increase from HK$53,391 thousand in the prior year, mainly due to a shift from loss to gain in currency translation differences Consolidated Comprehensive Income Statement Key Data (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 32,532 | 71,506 | -54.5% | | Currency translation differences – subsidiaries | 30,579 | (15,845) | N/A | | Currency translation differences – joint ventures and associates | 7,011 | (2,270) | N/A | | Other comprehensive income for the period, net of tax | 37,590 | (18,115) | N/A | | Total comprehensive income for the period | 70,122 | 53,391 | 31.3% | | Attributable to equity holders of the Company | 58,717 | 51,252 | 14.6% | | Non-controlling interests | 11,405 | 2,139 | 433.2% | [Unaudited Consolidated Statement of Financial Position](index=8&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased to HK$5,750,991 thousand, and total liabilities rose to HK$2,126,025 thousand. The current ratio decreased from 1.5 to 1.3, the gearing ratio increased from 8.1% to 11.9%, and the debt ratio rose from 34.6% to 37.0%, indicating reduced liquidity and increased leverage Consolidated Statement of Financial Position Key Data (As of June 30) | Metric | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 4,275,355 | 4,039,170 | 5.8% | | Current assets | 1,475,636 | 1,465,987 | 0.7% | | **Total assets** | **5,750,991** | **5,505,157** | **4.5%** | | **Equity** | | | | | Total equity | 3,624,966 | 3,599,691 | 0.7% | | **Liabilities** | | | | | Non-current liabilities | 981,669 | 938,293 | 4.6% | | Current liabilities | 1,144,356 | 967,173 | 18.3% | | **Total liabilities** | **2,126,025** | **1,905,466** | **11.6%** | | Net current assets | 331,280 | 498,814 | -33.6% | | Total assets less current liabilities | 4,606,635 | 4,537,984 | 1.5% | Liquidity and Capital Structure Metrics (As of June 30) | Metric | 2025 June 30 | 2024 Dec 31 | Change | | :--- | :--- | :--- | :--- | | Current ratio | 1.3 | 1.5 | Decrease | | Gearing ratio | 11.9% | 8.1% | Increase | | Debt ratio | 37.0% | 34.6% | Increase | [Notes to the Financial Statements](index=10&type=section&id=Notes%20to%20the%20Financial%20Statements) [1. Compliance Statement](index=10&type=section&id=1.%20Compliance%20Statement) The comparative financial information in the interim financial report is extracted from the statutory annual consolidated financial statements for FY2024, filed in accordance with the Hong Kong Companies Ordinance and accompanied by an unqualified auditor's report - The statutory annual consolidated financial statements for the 2024 financial year were submitted to the Registrar of Companies in accordance with section 662(3) and Part 3 of Schedule 6 to the Hong Kong Companies Ordinance[23](index=23&type=chunk) - The Company's auditor issued an unqualified report on these financial statements[24](index=24&type=chunk) [2. Basis of Preparation](index=10&type=section&id=2.%20Basis%20of%20Preparation) The interim financial report is prepared in accordance with the applicable disclosure provisions of the Hong Kong Stock Exchange Listing Rules and HKAS 34 'Interim Financial Reporting,' using the same accounting policies as the 2024 annual financial statements, except for anticipated changes - The interim financial report is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[25](index=25&type=chunk) - The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[25](index=25&type=chunk) [3. Changes in Accounting Policies](index=11&type=section&id=3.%20Changes%20in%20Accounting%20Policies) The Group has applied amendments to HKAS 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability,' but these had no material impact on the interim financial report as the Group did not engage in non-exchangeable foreign currency transactions - The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability"[26](index=26&type=chunk) - As the Group did not engage in any foreign currency transactions that are not exchangeable into other currencies, these amendments had no material impact on the interim financial report[26](index=26&type=chunk) [4. Segment Information](index=11&type=section&id=4.%20Segment%20Information) The Group's operations are divided into five main segments: cargo transportation, cargo handling and warehousing, passenger transport, fuel supply, and corporate and other businesses. For the six months ended June 30, 2025, profit before tax significantly decreased in cargo transportation and passenger transport segments, while cargo handling and warehousing remained relatively stable - The Group's operating segments include: cargo transportation, cargo handling and warehousing, passenger transport, fuel supply, and corporate and other businesses[29](index=29&type=chunk) Segment Turnover and Profit Before Tax (For the six months ended June 30) | Segment | 2025 Turnover (HK$ thousand) | 2024 Turnover (HK$ thousand) | 2025 Profit Before Tax (HK$ thousand) | 2024 Profit Before Tax (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Cargo Transportation | 775,279 | 830,052 | 4,784 | 12,494 | | Cargo Handling and Warehousing | 188,329 | 177,994 | 15,784 | 27,076 | | Passenger Transport | 173,871 | 171,319 | 9,866 | 22,298 | | Fuel Supply | 166,827 | 201,154 | 2,000 | 4,738 | | Corporate and Other Businesses | 10,802 | 8,192 | 9,179 | 18,501 | | **Total** | **1,315,108** | **1,388,711** | **41,613** | **85,107** | [5. Trade and Other Receivables](index=14&type=section&id=5.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade receivables were HK$485,509 thousand, a 32.2% increase from HK$367,092 thousand on December 31, 2024, with the largest portion due within three months Trade Receivables Ageing Analysis (As of June 30) | Ageing | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | | :--- | :--- | :--- | | Within 3 months | 305,647 | 250,939 | | 4 to 6 months | 72,514 | 39,925 | | 7 to 12 months | 37,974 | 23,130 | | Over 12 months | 69,374 | 53,098 | | **Total** | **485,509** | **367,092** | | Less: Loss allowance | (18,098) | (10,516) | | **Net** | **467,411** | **356,576** | [6. Trade Payables, Accruals and Other Payables](index=14&type=section&id=6.%20Trade%20Payables,%20Accruals%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade payables were HK$265,069 thousand, a 9.9% increase from HK$240,946 thousand on December 31, 2024, primarily due within three months Trade Payables Ageing Analysis (As of June 30) | Ageing | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | | :--- | :--- | :--- | | Within 3 months | 222,206 | 226,052 | | 4 to 6 months | 30,082 | 8,116 | | 7 to 12 months | 9,157 | 1,633 | | Over 12 months | 3,624 | 5,145 | | **Total** | **265,069** | **240,946** | [7. Profit Before Income Tax](index=15&type=section&id=7.%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, the Group's total depreciation and amortization expenses were HK$96,598 thousand, a 31.7% increase from HK$73,348 thousand in the prior year, with a significant rise in depreciation of right-of-use assets. Staff costs also saw a slight increase Profit Before Income Tax Deductions (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Amortisation of land use rights | 5,114 | 6,769 | | Amortisation of intangible assets | 1,935 | 841 | | Depreciation of property, plant and equipment | 54,825 | 52,204 | | Depreciation of investment properties | 296 | 585 | | Depreciation of right-of-use assets | 34,428 | 12,949 | | Rental expenses for short-term leases – vessels and barges | 66,156 | 75,339 | | Rental expenses for short-term leases – buildings | 4,758 | 4,923 | | Staff costs (including directors' emoluments) | 288,852 | 282,487 | [8. Other Income – Net](index=15&type=section&id=8.%20Other%20Income%20–%20Net) For the six months ended June 30, 2025, the Group's other income – net was HK$1,862 thousand, a 56.7% decrease from HK$4,304 thousand in the prior year, mainly due to reduced gain on deemed disposal of interest in a joint venture and a significant increase in impairment provision for trade receivables Other Income – Net (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Exchange gain, net | 651 | 683 | | Gain on deemed disposal of interest in a joint venture | 3,360 | 6,042 | | Gain on bargain purchase of a subsidiary | 5,052 | - | | Gain on disposal of property, plant and equipment | 381 | 1,570 | | Impairment provision for trade receivables | (7,582) | (991) | | Impairment loss on investment in an associate | - | (3,000) | | **Total** | **1,862** | **4,304** | [9. Income Tax Expense](index=16&type=section&id=9.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense was HK$9,081 thousand, a 33.2% decrease from HK$13,601 thousand in the prior year. Hong Kong, PRC, and Macau income taxes all decreased, and deferred income tax shifted from an expense to a credit - Hong Kong income tax is calculated at **16.5%**, China corporate income tax at **25%**, and Macau income tax at **12%**[37](index=37&type=chunk) Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current income tax – Hong Kong income tax | 349 | 3,744 | | Current income tax – China corporate income tax | 8,825 | 8,538 | | Current income tax – Macau income tax | 613 | 757 | | Deferred income tax (credit)/expense | (706) | 562 | | **Total** | **9,081** | **13,601** | [10. Dividends](index=16&type=section&id=10.%20Dividends) The Board declared an interim dividend of HK 1 cent per ordinary share for the year ending December 31, 2025, a reduction from HK 2 cents in 2024 - The Board declared an interim dividend of **HK 1 cent** per ordinary share for the year ending December 31, 2025 (2024: HK 2 cents)[40](index=40&type=chunk) [11. Earnings Per Share](index=17&type=section&id=11.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were HK 2.38 cents, a significant 60.3% decrease from HK 5.99 cents in the prior year. Diluted earnings per share were the same as basic earnings per share due to the absence of potential dilutive ordinary shares Earnings Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HK$ thousand) | 26,662 | 67,115 | | Weighted average number of ordinary shares in issue (thousand shares) | 1,121,167 | 1,121,167 | | Basic earnings per share (HK cents) | 2.38 | 5.99 | - As there were no potential dilutive ordinary shares in issue for the six months ended June 30, 2025 and 2024, the diluted earnings per share for these periods were equal to the basic earnings per share[42](index=42&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Business Review](index=18&type=section&id=Overall%20Business%20Review) In H1 2025, the Group's consolidated turnover decreased by 5.3%, and profit attributable to equity holders of the Company significantly dropped by 60.3%, primarily due to a deteriorating international trade environment, a sluggish Hong Kong shipping industry, a weak mainland real estate market, and passenger diversion from the opening of the Shenzhen-Zhongshan Link 2025 H1 Overall Financial Performance | Metric | 2025 H1 | 2024 H1 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Consolidated Turnover | HK$1,315,108,000 | HK$1,388,711,000 | -5.3% | | Profit attributable to equity holders of the Company | HK$26,662,000 | HK$67,115,000 | -60.3% | - Repeated adjustments in international tariff policies, escalating geopolitical conflicts, a sluggish Hong Kong shipping industry, and a continuous downturn in China's mainland real estate market significantly impacted the Group's freight business[43](index=43&type=chunk) - The opening of the Shenzhen-Zhongshan Link improved the comprehensive multi-modal transportation in the Greater Bay Area, creating greater operational pressure on the Group's cross-boundary water passenger transport and related auxiliary businesses[43](index=43&type=chunk) Port, Shipping and Logistics Key Business Volumes (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Container transport volume (TEU) | 600,000 | 667,000 | -10.0% | | Bulk cargo transport volume (tons) | 145,000 | 614,000 | -76.4% | | Terminal container throughput (TEU) | 540,000 | 504,000 | 7.1% | | Terminal bulk cargo throughput (tons) | 4,348,000 | 4,234,000 | 2.7% | | Container land haulage volume (TEU) | 80,000 | 92,000 | -13.0% | Passenger Transport Business Volumes (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total agency passenger volume (passengers) | 802,000 | 877,000 | -8.6% | | Total terminal service passenger volume (passengers) | 573,000 | 586,000 | -2.2% | | Local ferry passenger volume (passengers) | 5,743,000 | 5,751,000 | -0.1% | [I. Port, Shipping and Logistics Business](index=19&type=section&id=I.%20Port,%20Shipping%20and%20Logistics%20Business) The Port, Shipping and Logistics business faced severe challenges in H1 2025, with a significant decline in cargo transport volume (especially bulk cargo), yet terminal throughput grew against the trend. Subsidiaries actively responded by strengthening collaboration, expanding new businesses, and optimizing cooperation models Cargo Transport Business Metrics (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Container transport volume (TEU) | 600,000 | 667,000 | -10.0% | | Bulk cargo transport volume (billing tons) | 145,000 | 614,000 | -76.4% | | Container land haulage volume (TEU) | 80,000 | 92,000 | -13.0% | - Pearl River Transit successfully advanced the Hong Kong University MIC project by forming a professional project team, leveraging resource advantages, and improving operational efficiency, also winning bids for several small and medium-sized transitional housing and resettlement projects, and expanding international transport services for new energy buses[47](index=47&type=chunk) Cargo Handling and Warehousing Business Metrics (For the six months ended June 30) | Metric | 2025 | 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Container throughput (TEU) | 540,000 | 504,000 | 7.1% | | Bulk cargo throughput (billing tons) | 4,348,000 | 4,234,000 | 2.7% | - Zhaoqing area's container throughput increased by **26.7%** year-on-year, and bulk cargo throughput increased by **6.1%** year-on-year, primarily due to coordinated port development and expanded domestic trade market share[50](index=50&type=chunk) - Foshan area's bulk cargo throughput significantly increased by **72.7%** year-on-year, with Gaoming Port successfully expanding multiple MIC transport projects and stone transport projects, and Beicun Terminal resuming rice import business and adding rice bran imports[51](index=51&type=chunk) - Qingyuan Port's container business grew significantly by **19.1%**, mainly by strengthening cooperation with new freight forwarding companies and developing ceramic export business[52](index=52&type=chunk) - Zhongshan Huangpu Port's container throughput increased by **61.9%** year-on-year, primarily by providing excellent service to key home appliance clients, ensuring supply, and conducting joint marketing[54](index=54&type=chunk) - Hong Kong area's container throughput slightly increased by **0.8%**, and Pearl River Transit seized opportunities in the restructuring warehousing market to expand rebar and milk powder warehousing businesses, also becoming a primary agent for some airlines[55](index=55&type=chunk) - Among joint ventures and associates, Sanbu Port's bulk cargo throughput increased by **54.0%** year-on-year, mainly by stabilizing existing grain bulk cargo sources and developing new ones[56](index=56&type=chunk) [II. Passenger Transport Business](index=23&type=section&id=II.%20Passenger%20Transport%20Business) Passenger transport business saw a decline in cross-boundary passenger volume due to the opening of the Shenzhen-Zhongshan Link and the relocation of Zhongshan Passenger Terminal, but local ferry services remained stable, and marine tourism business achieved substantial growth. The Group enhanced competitiveness through new media promotion, bundled products, and vessel upgrades Passenger Transport Business Metrics (For the six months ended June 30) | Metric | 2025 (thousand passengers) | 2024 (thousand passengers) | Change | | :--- | :--- | :--- | :--- | | Total agency passenger volume | 802 | 877 | -8.6% | | Total terminal service passenger volume | 573 | 586 | -2.2% | | Local ferry passenger volume | 5,743 | 5,751 | -0.1% | - Pearl River Passenger Transport's total agency passenger volume and terminal service passenger volume both decreased, but it resumed agency for the Zhuhai-Hong Kong China Ferry Terminal route and used new media to release promotional videos, launching "Cross-boundary Passenger Transport +" combined products with subsidiaries[59](index=59&type=chunk) - Local ferry business passenger volume slightly decreased by **0.1%**, with New World First Ferry continuously strengthening digitalization, launching WeChat mini-program ticketing services, and orderly advancing vessel renewal[60](index=60&type=chunk) - In marine tourism, Oriental Pearl's cumulative passenger volume increased by **106.5%** year-on-year, achieved through enhanced marketing, joint airline live streaming, and cooperation with popular Hong Kong attractions to promote tourism packages[60](index=60&type=chunk) - Hong Kong-Zhuhai-Macao Bridge Shuttle Bus business passenger volume increased by **4.3%** year-on-year, benefiting from the recovery of air traffic at Hong Kong International Airport[61](index=61&type=chunk) [III. Fuel Supply Business](index=25&type=section&id=III.%20Fuel%20Supply%20Business) Fuel supply business experienced a decrease in diesel and lubricating oil sales due to adjustments in cross-boundary passenger transport routes, but lubricating oil agency transport volume significantly increased. Sun Kong Petroleum commissioned its newly built lubricating oil tanker 'Xin Hu' and acquired three diesel tankers to enhance market influence Fuel Supply Business Metrics (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Diesel sales volume | 42,000 tons | 47,000 tons | -10.6% | | Lubricating oil sales volume | 91,000 liters | 102,000 liters | -10.8% | | Lubricating oil agency transport volume | 5,950,000 liters | 4,890,000 liters | 21.7% | - Sun Kong Petroleum's newly built lubricating oil tanker "Xin Hu" was successfully commissioned, and efforts were intensified to develop the marine lubricating oil supply chain business, further increasing its market share in local Hong Kong[62](index=62&type=chunk) - Sun Kong Petroleum seized opportunities in the restructuring market landscape, completing the acquisition of three diesel tankers to further enhance its influence in the local Hong Kong market[62](index=62&type=chunk) [IV. Corporate and Other Businesses](index=25&type=section&id=IV.%20Corporate%20and%20Other%20Businesses) Zhuhai-Macau Engineering Technology Co., Ltd. saw reduced revenue and profit compared to the prior year, mainly due to decreased workload from the Sands Group water supply pipeline project. Zhuhai-Macau Engineering will continue to leverage its technical advantages and actively explore new projects to enhance sustainable profitability - Zhuhai-Macau Engineering Technology Co., Ltd.'s revenue and profit for the period both decreased compared to the prior year, primarily due to a year-on-year reduction in workload for the Sands Group water supply pipeline project[63](index=63&type=chunk) - Zhuhai-Macau Engineering will continue to leverage its technical advantages, closely monitor bidding projects from various Macau government agencies and enterprises, and actively explore new long-term stable projects to enhance sustainable profitability[63](index=63&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=26&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the Group's current ratio was 1.3, down from 1.5 at year-end; the gearing ratio increased to 11.9%, and the debt ratio rose to 37.0%. Despite some deterioration in liquidity indicators, the Group maintains sufficient bank credit facilities and cash to meet future funding needs Liquidity and Capital Structure Metrics | Metric | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Total bank credit facilities (HKD) | 1,335,000,000 | 1,185,000,000 | | Total bank credit facilities (RMB) | 507,949,000 (approx. HK$556,961,000) | 109,571,000 (approx. HK$118,327,000) | | Current ratio | 1.3 | 1.5 | | Cash and cash equivalents (HK$ thousand) | 764,173 | 845,459 | | Cash as % of total assets | 13.3% | 15.4% | | Gearing ratio | 11.9% | 8.1% | | Debt ratio | 37.0% | 34.6% | - The Group has sufficient funds to meet its future business operations, expansion, and general development needs, including current cash holdings, cash generated from operations, and available bank credit facilities[66](index=66&type=chunk) - During the period, the Group did not use any other financial instruments for hedging purposes[67](index=67&type=chunk) [Bank Borrowings and Pledged Assets](index=27&type=section&id=Bank%20Borrowings%20and%20Pledged%20Assets) As of June 30, 2025, the Group's bank borrowings in Hong Kong included unsecured HKD and fixed-rate RMB loans. Bank borrowings in mainland China were floating-rate, with some secured by land use rights, investment properties, and property, plant and equipment Bank Borrowings (As of June 30) | Bank Location | Currency | Collateral Status | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | HKD | Unsecured | 200,000 | 200,000 | | Hong Kong | RMB | Unsecured | 164,475 | - | | Mainland China | RMB | Secured | 120,402 | 118,327 | | Mainland China | RMB | Unsecured | 5,483 | - | - HKD bank borrowings in Hong Kong are floating-rate and unsecured; RMB bank borrowings are fixed-rate and unsecured[71](index=71&type=chunk) - Bank borrowings in mainland China are floating-rate, with some secured by the Group's land use rights, investment properties, and property, plant and equipment; the remainder are unsecured[71](index=71&type=chunk) [Currency Structure](index=27&type=section&id=Currency%20Structure) The Group's cash and cash equivalents are primarily held in HKD, RMB, and USD, with small amounts in MOP and EUR, deposited with various reputable banks - The Group's cash and cash equivalents are primarily held in Hong Kong Dollars, Renminbi, and US Dollars, with small amounts in Macau Pataca and Euros, deposited with various reputable banks[69](index=69&type=chunk) [Capital Commitments](index=27&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's outstanding capital commitments were HK$251,434 thousand, a significant decrease from HK$501,178 thousand at year-end. The Group has sufficient financial resources to meet these commitments Capital Commitments (As of June 30) | Metric | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | | :--- | :--- | :--- | | Outstanding capital commitments | 251,434 | 501,178 | - The Group has sufficient financial resources, including existing cash and cash equivalents, cash generated from operations, and available bank credit facilities, to meet capital commitment expenditures[70](index=70&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Joint Ventures and Associates](index=28&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Joint%20Ventures%20and%20Associates) The Group entered an agreement with Baowu Group Zhongnan Iron & Steel Co., Ltd. to establish Shaoguan Zhongnan Port & Shipping Co., Ltd., investing RMB166,600,000 for a 49% equity stake, with Shaoguan Zhongnan recognized as an associate. No other significant acquisitions or disposals occurred during the period - The Group entered into an agreement with Baowu Group Zhongnan Iron & Steel Co., Ltd. to establish Shaoguan Zhongnan Port & Shipping Co., Ltd., with a registered capital of **RMB340,000,000**[72](index=72&type=chunk) - The Group invested **RMB166,600,000** for a **49%** equity stake in Shaoguan Zhongnan, which is recognized as an associate of the Group[72](index=72&type=chunk) - For the six months ended June 30, 2025, the Group did not undertake any other significant acquisitions or disposals of subsidiaries, joint ventures, or associates[73](index=73&type=chunk) [Material Investments](index=28&type=section&id=Material%20Investments) Except for the disclosed investment in Shaoguan Zhongnan Port & Shipping Co., Ltd., the Group held no other material investments for the six months ended June 30, 2025 - Except as disclosed in this announcement, the Group held no other material investments for the six months ended June 30, 2025[74](index=74&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[75](index=75&type=chunk) [Foreign Exchange Risk](index=28&type=section&id=Foreign%20Exchange%20Risk) The Group's operations and investments are concentrated in Guangdong-Hong Kong-Macau, with revenue and expenses primarily in HKD, supplemented by RMB and USD. Given the stable Hong Kong Linked Exchange Rate System, the Group does not anticipate significant short-term foreign exchange risk - The Group's daily operations and investment activities are concentrated in Guangdong-Hong Kong-Macau, with revenue and expenses primarily in Hong Kong Dollars, supplemented by Renminbi and US Dollars[76](index=76&type=chunk) - Given the stable Hong Kong Linked Exchange Rate System, the Group will not bear significant foreign exchange risk in the short term[76](index=76&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=28&type=section&id=Purchase,%20Redemption%20or%20Sale%20of%20the%20Company's%20Listed%20Securities) During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased or sold any of the Company's listed securities[77](index=77&type=chunk) - The Company did not redeem any of its shares[77](index=77&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) [Adoption of the Model Code for Securities Transactions by Directors](index=29&type=section&id=Adoption%20of%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a standard of conduct for directors' securities transactions no less exacting than the Model Code set out in Appendix C3 of the Listing Rules, and all directors have complied with it throughout the reporting period - The Company has adopted a standard of conduct for directors' securities transactions no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[78](index=78&type=chunk) - All directors of the Company have complied with the relevant code of conduct throughout the accounting period covered by the 2025 interim report[78](index=78&type=chunk) [Publication of Interim Report on the HKEX Website](index=29&type=section&id=Publication%20of%20Interim%20Report%20on%20the%20HKEX%20Website) The Company's interim report for the six months ended June 30, 2025, will be published later on the HKEX website and the Company's website - The Company's interim report for the six months ended June 30, 2025, will be published later on the HKEX website (www.hkexnews.hk) and the Company's website (www.cksd.com)[79](index=79&type=chunk) [Interim Dividend](index=29&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HK 1 cent per ordinary share for the year ending December 31, 2025, totaling approximately HK$11,212,000, payable in cash to shareholders registered on September 26, 2025 - The Board declared an interim dividend of **HK 1 cent** per ordinary share for the year ending December 31, 2025 (2024: HK 2 cents), totaling approximately **HK$11,212,000**[80](index=80&type=chunk) - The interim dividend is expected to be paid in cash to shareholders whose names appear on the register of members on Friday, September 26, 2025[80](index=80&type=chunk) [Closure of Register of Members](index=29&type=section&id=Closure%20of%20Register%20of%20Members) To qualify for the interim dividend, the Company will close its register of members from September 23 to September 26, 2025. Shareholders must lodge all transfer documents with the share registrar by 4:30 p.m. on September 22, 2025 - The Company will close its register of members from Tuesday, September 23, 2025, to Friday, September 26, 2025 (both days inclusive)[81](index=81&type=chunk) - To qualify for the interim dividend, all transfer documents, together with the relevant share certificates, must be lodged with the Company's share registrar, Tricor Investor Services Limited, for registration by 4:30 p.m. (Hong Kong time) on Monday, September 22, 2025[81](index=81&type=chunk) [Review by Audit Committee](index=30&type=section&id=Review%20by%20Audit%20Committee) The Company's Audit Committee has reviewed the unaudited consolidated interim financial information for the six months ended June 30, 2025. The report was prepared in accordance with HKAS 34 and reviewed by the Company's independent external auditor, KPMG - The Company's Audit Committee has reviewed the unaudited consolidated interim financial information of the Group for the six months ended June 30, 2025[82](index=82&type=chunk) - The interim financial report was prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and reviewed by the Company's independent external auditor, KPMG, in accordance with Hong Kong Standard on Review Engagements 2410[82](index=82&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The Company's directors have adopted and complied with policies ensuring adherence to the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the reporting period. Independent Non-executive Directors Mr. Chan Ki-cheong and Ms. Yau Lai-man, having served over nine years, were re-appointed via independent shareholder resolution after their independence was confirmed - The Company's directors have adopted various policies to ensure compliance with the Corporate Governance Code set out in Appendix C1 of the Listing Rules and have complied with it throughout the reporting period[83](index=83&type=chunk) - Independent Non-executive Directors Mr. Chan Ki-cheong and Ms. Yau Lai-man, having served for more than nine years, were re-appointed through independent shareholder resolutions after their independence was confirmed following assessment and review by the Nomination Committee[84](index=84&type=chunk)[85](index=85&type=chunk) [Directors](index=31&type=section&id=Directors) Mr. Tang Yee-ha was appointed as an independent non-executive director for Bamboos Health Care Holdings Limited and JD Logistics, Inc. in August 2025. As of the announcement date, the Board comprises Executive Directors Mr. Liu Guanghui, Mr. Zhou Jun, and Mr. Liu Wuwei; Non-executive Director Ms. Zhong Yan; and Independent Non-executive Directors Mr. Chan Ki-cheong, Ms. Yau Lai-man, Mr. Chan Chung-nin, and Mr. Tang Yee-ha - Mr. Tang Yee-ha was appointed as an independent non-executive director of Bamboos Health Care Holdings Limited on August 1, 2025, for a term of two years[86](index=86&type=chunk) - Mr. Tang Yee-ha was appointed as an independent non-executive director of JD Logistics, Inc. on August 14, 2025, for a term of three years[86](index=86&type=chunk) - As of the announcement date, the Executive Directors are Mr. Liu Guanghui, Mr. Zhou Jun, and Mr. Liu Wuwei; the Non-executive Director is Ms. Zhong Yan; and the Independent Non-executive Directors are Mr. Chan Ki-cheong, Ms. Yau Lai-man, Mr. Chan Chung-nin, and Mr. Tang Yee-ha[86](index=86&type=chunk)

[Interim Financial Summary](index=1&type=section&id=Interim%20Financial%20Summary) Wing Kei Group's unaudited interim results for the six months ended June 30, 2025, show declines in revenue, gross profit, and profit attributable to owners, with a corresponding decrease in basic earnings per share Interim Financial Summary for the Six Months Ended June 30, 2025 | Indicator | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | Change (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 165,500 | 171,700 | (6,200) | -3.6% | | Gross Profit | 25,600 | 32,600 | (7,000) | -21.6% | | Profit attributable to owners of the Company | 10,800 | 13,400 | (2,600) | -19.4% | | Basic earnings per share (HK cents) | 0.54 | 0.81 | (0.27) | -33.3% | - The Board of Directors resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025[5](index=5&type=chunk) [Unaudited Consolidated Interim Financial Statements](index=2&type=section&id=Unaudited%20Consolidated%20Interim%20Financial%20Statements) This section presents the Group's unaudited condensed consolidated interim statements of comprehensive income and financial position for the six months ended June 30, 2025, with comparative financial data [Unaudited Consolidated Interim Statement of Comprehensive Income](index=2&type=section&id=Unaudited%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue was HK$165.5 million, a 3.6% decrease year-over-year, while gross profit fell by 21.6% to HK$25.6 million, and profit attributable to owners decreased by 19.2% Unaudited Consolidated Interim Statement of Comprehensive Income for the Six Months Ended June 30, 2025 (HK$'000) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 165,519 | 171,708 | | Cost of services | (139,942) | (139,088) | | Gross profit | 25,577 | 32,620 | | Other income | 4 | 3 | | Other net gains | 69 | 71 | | Administrative expenses | (12,080) | (10,726) | | Listing expenses | – | (4,838) | | (Impairment losses)/reversal of impairment losses on financial and contract assets | (406) | 112 | | Operating profit | 13,164 | 17,242 | | Finance income | 93 | 380 | | Finance costs | (256) | (279) | | Finance (costs)/income, net | (163) | 101 | | Profit before income tax expense | 13,001 | 17,343 | | Income tax expense | (2,169) | (3,941) | | Profit for the period attributable to owners of the Company | 10,832 | 13,402 | | Basic and diluted earnings per share (HK cents) | 0.54 | 0.81 | | Exchange differences on translation of foreign operations | (275) | 341 | | Total comprehensive income for the period attributable to owners of the Company | 10,557 | 13,743 | [Unaudited Consolidated Interim Statement of Financial Position](index=3&type=section&id=Unaudited%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HK$311.6 million, with net current assets at HK$228.8 million, total equity at HK$263.9 million, and total liabilities at HK$47.7 million Unaudited Consolidated Interim Statement of Financial Position as of June 30, 2025 (HK$'000) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **ASSETS** | | | | Non-current assets | 36,285 | 36,986 | | Current assets | 275,329 | 276,319 | | **Total assets** | **311,614** | **313,305** | | **EQUITY** | | | | Equity attributable to owners of the Company | 263,939 | 253,382 | | **LIABILITIES** | | | | Non-current liabilities | 1,150 | 2,483 | | Current liabilities | 46,525 | 57,440 | | **Total liabilities** | **47,675** | **59,923** | | **Total equity and liabilities** | **311,614** | **313,305** | [Notes to the Unaudited Condensed Consolidated Interim Financial Statements](index=5&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes on the interim financial statements, covering key financial details such as general information, basis of preparation, accounting policies, and segment information [1. General Information](index=5&type=section&id=1.%20General%20Information) Wing Kei Group (Holdings) Limited, an investment holding company engaged in steel structure engineering services in Hong Kong, was incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange - The Company was incorporated in the Cayman Islands on June 28, 2023, as an investment holding company[9](index=9&type=chunk) - The Group is principally engaged in providing steel structure engineering services in Hong Kong[9](index=9&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on March 8, 2024[9](index=9&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The unaudited interim financial statements were prepared in accordance with HKAS 34 and the Listing Rules, using consistent accounting policies as the 2024 annual financial statements - The unaudited interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules[10](index=10&type=chunk) - The accounting policies adopted are consistent with those of the annual audited consolidated financial statements for the year ended December 31, 2024, except for the adoption of amendments to HKFRSs[10](index=10&type=chunk) - These financial statements have not been audited or reviewed by an external auditor but have been reviewed by the Company's Audit Committee[10](index=10&type=chunk) [3. Application of Amendments to Hong Kong Financial Reporting Standards (HKFRSs)](index=6&type=section&id=3.%20Application%20of%20Amendments%20to%20Hong%20Kong%20Financial%20Reporting%20Standards%20(HKFRSs)) The Group's first-time application of the amendment to HKAS 21, "Lack of Exchangeability," effective January 1, 2025, had no material impact on its financial position and performance - The Group has applied for the first time the amendment to HKAS 21, "Lack of Exchangeability," which became effective on January 1, 2025[11](index=11&type=chunk) - The application of this amendment **did not have a material impact** on the Group's financial position and performance[11](index=11&type=chunk) [4. Issued but not yet effective HKFRSs](index=6&type=section&id=4.%20Issued%20but%20not%20yet%20effective%20HKFRSs) The Group has not early adopted several new and revised HKFRSs, and management's initial assessment indicates no significant impact on the Group's financial performance and position upon their adoption - The Group has not early adopted a number of new standards, amendments, and interpretations that have been issued but are not yet effective, including HKFRS 18 and amendments to HKFRS 9 and HKFRS 7[12](index=12&type=chunk)[14](index=14&type=chunk) - The initial assessment indicates that these amendments are **not expected to have a significant impact** on the Group's financial performance and position when they become effective[12](index=12&type=chunk) [5. Significant Accounting Estimates and Judgements](index=6&type=section&id=5.%20Significant%20Accounting%20Estimates%20and%20Judgements) The significant judgements, estimates, and assumptions made by management in preparing the interim financial information are consistent with those applied in the 2024 annual financial statements - The significant judgements and estimates made by management in preparing the interim financial information are the same as those applied to the annual audited consolidated financial statements[13](index=13&type=chunk) - Actual results may differ from these estimates[13](index=13&type=chunk) [6. Revenue and Segment Information](index=7&type=section&id=6.%20Revenue%20and%20Segment%20Information) The Group operates in a single segment, providing steel structure engineering services in Hong Kong, with revenue for the period primarily derived from a few major customers - The Group has only one operating segment, which is providing steel structure engineering services in Hong Kong[15](index=15&type=chunk) Revenue from Steel Structure Engineering (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue from steel structure engineering | 165,519 | 171,708 | Revenue from Major Customers (HK$'000) | Customer | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Customer 1 | 70,507 | 79,327 | | Customer 2 | 24,549 | N/A* | | Customer 3 | 21,418 | N/A* | | Customer 4 | N/A* | 25,009 | | Customer 5 | N/A* | 24,232 | * Represents less than 10% of the revenue for the respective period. [7. Other Income and Other Net Gains](index=7&type=section&id=7.%20Other%20Income%20and%20Other%20Net%20Gains) For the six months ended June 30, 2025, the Group's other income and other net gains remained stable, with gains from life insurance contracts offset by losses on the disposal of equipment Other Income and Other Net Gains (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Government grants | 4 | 3 | | Change in value of life insurance contracts | 110 | 71 | | Loss on disposal of plant and equipment | (41) | – | | **Total** | **73** | **74** | [8. Operating Expenses](index=8&type=section&id=8.%20Operating%20Expenses) This section details the Group's main operating expenses, including employee benefit expenses, which decreased, and depreciation charges for property and right-of-use assets, which increased Major Operating Expenses (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Employee benefit expenses | 17,262 | 18,429 | | Depreciation of property, plant and equipment | 3,229 | 779 | | Depreciation of right-of-use assets | 2,801 | 1,867 | [9. Finance (Costs)/Income, Net](index=8&type=section&id=9.%20Finance%20(Costs)%2FIncome%2C%20Net) The Group recorded net finance costs of HK$163,000 for the period, a shift from net finance income in the prior year, primarily due to lower interest income and higher lease liability interest expenses Finance (Costs)/Income, Net (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Interest income on bank deposits | 93 | 380 | | Interest expense on bank borrowings | (125) | (229) | | Interest expense on lease liabilities | (131) | (50) | | **Finance (costs)/income, net** | **(163)** | **101** | [10. Income Tax Expense](index=8&type=section&id=10.%20Income%20Tax%20Expense) The Group is not subject to income tax in the Cayman Islands and BVI, while Hong Kong profits tax is calculated at 16.5% (or 8.25% on the first HK$2.0 million for qualifying entities) and Mainland China at 25% - Hong Kong profits tax is calculated at **16.5%**, with the first HK$2.0 million for qualifying entities taxed at **8.25%**[21](index=21&type=chunk) - The corporate income tax rate in Mainland China is **25%**[21](index=21&type=chunk) Income Tax Expense (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | | Income tax expense | (2,169) | (3,941) | [11. Earnings Per Share](index=9&type=section&id=11.%20Earnings%20Per%20Share) Basic earnings per share for the six months ended June 30, 2025, decreased to 0.54 HK cents from 0.81 HK cents in the prior year, with diluted earnings per share being the same due to no potential dilutive shares Earnings Per Share Calculation (HK$'000/ '000 shares) | Item | 2025 (HK$'000/ '000 shares) | 2024 (HK$'000/ '000 shares) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 10,832 | 13,402 | | Weighted average number of ordinary shares in issue | 2,000,000 | 1,656,164 | | Earnings per share (HK cents) | 0.54 | 0.81 | - Diluted earnings per share is the same as basic earnings per share as there were **no potential dilutive ordinary shares** outstanding[23](index=23&type=chunk) [12. Dividends](index=9&type=section&id=12.%20Dividends) No dividend was paid or declared for the six months ended June 30, 2025; however, an interim dividend of approximately HK$26.586 million was declared in January 2024 - The Company **did not pay or declare any dividend** for the six months ended June 30, 2025[24](index=24&type=chunk) - In January 2024, the Company declared an interim dividend of approximately **HK$26.586 million**, which was partly settled in cash and partly by offsetting amounts due from directors and related companies[24](index=24&type=chunk) [13. Trade Receivables](index=9&type=section&id=13.%20Trade%20Receivables) Net trade receivables decreased to HK$52.072 million as of June 30, 2025, from HK$63.874 million at year-end 2024, with credit periods generally ranging from 30 to 60 days Trade Receivables (HK$'000) | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables | 55,996 | 67,870 | | Less: Provision for impairment | (3,924) | (3,996) | | **Net** | **52,072** | **63,874** | Ageing Analysis of Trade Receivables (HK$'000) | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Within 90 days | 49,986 | 64,042 | | 91 to 180 days | 1,459 | – | | Over 180 days | 4,551 | 3,828 | | **Total** | **55,996** | **67,870** | - The credit period granted to customers is generally between **30 to 60 days**[26](index=26&type=chunk) [14. Contract Assets and Contract Liabilities](index=10&type=section&id=14.%20Contract%20Assets%20and%20Contract%20Liabilities) As of June 30, 2025, net contract assets increased slightly to HK$96.058 million, while contract liabilities decreased, with assets primarily comprising unbilled revenue and retention money receivables Contract Assets and Contract Liabilities (HK$'000) | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **Contract assets** | | | | Unbilled revenue | 25,637 | 20,789 | | Retention money receivables for steel structure engineering | 73,990 | 77,746 | | Gross contract assets | 99,627 | 98,535 | | Less: Provision for impairment | (3,569) | (3,091) | | **Net contract assets** | **96,058** | **95,444** | | **Contract liabilities** | **(1,126)** | **(1,958)** | [15. Trade Payables and Retention Money Payables](index=10&type=section&id=15.%20Trade%20Payables%20and%20Retention%20Money%20Payables) Total trade and retention money payables decreased to HK$25.439 million as of June 30, 2025, from HK$32.969 million at year-end 2024, with the majority of balances aged within 90 days Trade Payables and Retention Money Payables (HK$'000) | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 23,469 | 31,431 | | Retention money payables | 1,970 | 1,538 | | **Total** | **25,439** | **32,969** | Ageing Analysis of Trade Payables (HK$'000) | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Within 30 days | 8,580 | 16,639 | | 31 to 60 days | 4,580 | 3,683 | | 61 to 90 days | 3,437 | 5,123 | | Over 90 days | 6,872 | 5,986 | | **Total** | **23,469** | **31,431** | [Business Review and Outlook](index=12&type=section&id=Business%20Review%20and%20Outlook) The Group navigates challenges in Hong Kong's property market through robust bidding, cost control, and efficiency, while exploring new opportunities in solar panels and prefabricated housing [Business Review](index=12&type=section&id=Business%20Review) As a Hong Kong steel structure engineering contractor, the Group successfully listed in March 2024 and is navigating market instability through strategic bidding, cost control, and operational efficiency - The Group, a steel structure engineering contractor in Hong Kong since 1999, was **successfully listed on March 8, 2024**[31](index=31&type=chunk) - Facing instability in Hong Kong's property market, the Group has adopted a **prudent and flexible approach**, focusing on strategic bidding, cost control, and operational efficiency[31](index=31&type=chunk) Project Count and Value of Uncompleted Projects | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of projects on hand | 26 | 22 | | Value of uncompleted projects | Approx. HK$255.7 million | Approx. HK$322.1 million | [Prospects](index=13&type=section&id=Prospects) Despite property market volatility, major public and infrastructure projects are expected to drive demand for steel engineering, while the Group expands into solar panels and prefabricated housing - Large-scale public and infrastructure projects, such as the **Tung Chung New Town Extension and the New Central Harbourfront**, will continue to drive stable demand for steel structure engineering[34](index=34&type=chunk) - The Group has established a subsidiary to **enter the solar panel market**, aiming to explore opportunities in the sustainable energy sector[35](index=35&type=chunk) - The Group is considering expanding into the **prefabricated housing and building materials business** to provide customizable and eco-friendly solutions[35](index=35&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) This section reviews the Group's financial performance for the six months ended June 30, 2025, detailing changes in key metrics such as revenue, costs, gross profit, and impairment losses [Revenue](index=13&type=section&id=Revenue) Revenue for the six months ended June 30, 2025, was approximately HK$165.5 million, a 3.6% decrease from the prior year, mainly due to slower certification progress affecting project timelines Revenue Change (HK$ million) | Period | Revenue (HK$ million) | | :--- | :--- | | Six months ended June 30, 2025 | 165.5 | | Six months ended June 30, 2024 | 171.7 | | **Change** | **-6.2 (-3.6%)** | - The decrease in revenue was primarily attributable to **slower certification progress**, which affected project timelines and revenue recognition[36](index=36&type=chunk) [Cost of Services](index=14&type=section&id=Cost%20of%20Services) The cost of services, comprising material costs, subcontracting fees, and direct labor, remained stable at approximately HK$139.9 million for the six months ended June 30, 2025 - Cost of services mainly includes **material costs, subcontracting fees, direct labor costs, and transportation and machinery service fees**[37](index=37&type=chunk) Cost of Services (HK$ million) | Period | Cost of Services (HK$ million) | | :--- | :--- | | Six months ended June 30, 2025 | 139.9 | | Six months ended June 30, 2024 | 139.1 | | **Change** | **+0.8 (+0.6%)** | [Gross Profit and Gross Profit Margin](index=14&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit decreased by 21.6% to HK$25.6 million, and the gross profit margin fell to 15.5% from 19.0%, driven by competitive pricing for new projects and the completion of higher-margin projects Gross Profit and Gross Profit Margin Change | Indicator | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit (HK$ million) | 25.6 | 32.6 | -7.0 (-21.6%) | | Gross Profit Margin | 15.5% | 19.0% | -3.5 percentage points | - The decrease in gross profit margin was mainly due to **more competitive pricing** to secure new projects and the completion of certain projects with relatively higher gross profit margins[38](index=38&type=chunk) [Other Income and Other Net Gains](index=14&type=section&id=Other%20Income%20and%20Other%20Net%20Gains) Other income and net gains remained stable, with an increase in the value of life insurance contracts being offset by a loss on the disposal of plant and equipment Other Income and Other Net Gains (HK$'000) | Period | Amount (HK$'000) | | :--- | :--- | | Six months ended June 30, 2025 | 73 | | Six months ended June 30, 2024 | 74 | - The increase in the cash surrender value of life insurance contracts to approximately HK$110,000 was offset by a **loss on disposal of plant and equipment of approximately HK$41,000**[39](index=39&type=chunk) [Administrative Expenses](index=14&type=section&id=Administrative%20Expenses) Administrative expenses increased by 12.6% to HK$12.1 million, primarily due to higher depreciation charges from relocating to a new office and increased entertainment expenses Administrative Expenses Change (HK$ million) | Period | Administrative Expenses (HK$ million) | | :--- | :--- | | Six months ended June 30, 2025 | 12.1 | | Six months ended June 30, 2024 | 10.7 | | **Change** | **+1.4 (+12.6%)** | - The increase in administrative expenses was mainly due to **higher depreciation charges** from the relocation to a new office and an increase in entertainment expenses[40](index=40&type=chunk) [(Impairment losses)/reversal of impairment losses on financial and contract assets](index=14&type=section&id=(Impairment%20losses)%2Freversal%20of%20impairment%20losses%20on%20financial%20and%20contract%20assets) The Group recorded an impairment loss of approximately HK$0.4 million for the period, compared to a reversal of impairment loss of HK$0.1 million in the prior year, indicating a deterioration in asset quality Impairment on Financial and Contract Assets (HK$'000) | Period | Amount (HK$'000) | | :--- | :--- | | Six months ended June 30, 2025 (Impairment loss) | (406) | | Six months ended June 30, 2024 (Reversal of impairment loss) | 112 | [Profit for the Period](index=15&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased by 19.2% to HK$10.8 million from HK$13.4 million in the prior year, with the net profit margin remaining relatively stable at 6.5% Profit for the Period and Net Profit Margin Change | Indicator | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Profit for the period (HK$ million) | 10.8 | 13.4 | -2.6 (-19.2%) | | Net profit margin | 6.5% | 7.8% | -1.3 percentage points | [Liquidity, Financial Resources and Capital Structure](index=15&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains a healthy liquidity position with net current assets of HK$228.8 million, a capital structure composed of equity and reserves, and a decreased gearing ratio [Liquidity Position](index=15&type=section&id=Liquidity%20Position) The Group maintains a sound liquidity position with net current assets of approximately HK$228.8 million and cash and cash equivalents of HK$116.1 million Liquidity Position (HK$ million) | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Net current assets | 228.8 | 218.9 | | Bank deposits with maturity over 3 months | 5.1 | 5.1 | | Cash and cash equivalents | 116.1 | 100.0 | - The main sources of liquidity are **equity capital, cash generated from operations, and bank borrowings**[43](index=43&type=chunk) [Bank Borrowings](index=15&type=section&id=Bank%20Borrowings) As of June 30, 2025, bank borrowings decreased to approximately HK$5.3 million from HK$5.9 million at year-end 2024, with all borrowings denominated in HKD and carrying floating interest rates Bank Borrowings (HK$ million) | Period | Bank Borrowings (HK$ million) | | :--- | :--- | | June 30, 2025 | 5.3 | | December 31, 2024 | 5.9 | - Bank borrowings are denominated in **Hong Kong dollars** and bear interest at **floating rates**[44](index=44&type=chunk) [Gearing Ratio](index=15&type=section&id=Gearing%20Ratio) The gearing ratio decreased from approximately 5.0% at year-end 2024 to 4.7% as of June 30, 2025, mainly due to a decrease in total equity during the period Gearing Ratio Change | Period | Gearing Ratio | | :--- | :--- | | June 30, 2025 | 4.7% | | December 31, 2024 | 5.0% | - The decrease in the gearing ratio was primarily due to the **decrease in total equity** for the six months ended June 30, 2025[45](index=45&type=chunk) [Net Debt to Equity Ratio](index=15&type=section&id=Net%20Debt%20to%20Equity%20Ratio) The net debt to equity ratio is not applicable as the Group maintained a net cash position on both June 30, 2025, and December 31, 2024 - The net debt to equity ratio is not applicable as the Group recorded a **net cash position**[47](index=47&type=chunk) [Other Information](index=16&type=section&id=Other%20Information) This section covers diverse information including capital expenditure, contingent liabilities, foreign exchange risk, employee policies, use of proceeds, and dividend policy [Capital Expenditure](index=16&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure increased to approximately HK$1.9 million from HK$1.3 million in the same period last year Capital Expenditure (HK$ million) | Period | Capital Expenditure (HK$ million) | | :--- | :--- | | Six months ended June 30, 2025 | 1.9 | | Six months ended June 30, 2024 | 1.3 | [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) The Group faces several personal injury claims from employee or subcontractor incidents, but these are considered covered by insurance and are not expected to have a material adverse financial impact - The Group is facing several **personal injury claims** arising from accidents involving its employees or subcontractors[50](index=50&type=chunk) - The Board believes these claims are **covered by insurance** and will not have any material adverse impact on the financial position or operations, thus no provision has been made[50](index=50&type=chunk) [Off-balance Sheet Arrangements and Commitments](index=16&type=section&id=Off-balance%20Sheet%20Arrangements%20and%20Commitments) The Directors confirm that as of June 30, 2025, the Group had no off-balance sheet arrangements or commitments - As at June 30, 2025, the Group **did not have any off-balance sheet arrangements or commitments**[51](index=51&type=chunk) [Pledge of Assets](index=16&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's bank borrowings were secured by life insurance contracts and guaranteed by the Company - As at June 30, 2025, bank borrowings were **secured by life insurance contracts** and guaranteed by the Company[52](index=52&type=chunk) [Significant Investments, Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures](index=16&type=section&id=Significant%20Investments%2C%20Acquisitions%20or%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the six months ended June 30, 2025, the Group made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had **no significant investments, acquisitions, or disposals** of subsidiaries, associates, and joint ventures[53](index=53&type=chunk) [Foreign Exchange Risk](index=16&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from RMB-denominated costs against its HKD revenue but has not experienced significant difficulties and will monitor the need for hedging arrangements - The Group's revenue is received in HKD while some costs are settled in RMB, exposing it to **fluctuations in the HKD/RMB exchange rate**[54](index=54&type=chunk) - For the six months ended June 30, 2025, the Group did not experience any material difficulties in its operations or liquidity due to exchange rate fluctuations[54](index=54&type=chunk) - The Group has **not used any financial instruments for hedging purposes** but will monitor and implement hedging arrangements when appropriate[55](index=55&type=chunk) [Financial Instruments](index=17&type=section&id=Financial%20Instruments) The Group's main financial instruments include receivables, payables, bank deposits, cash, bank borrowings, and lease liabilities, with management taking prudent measures to manage associated risks - Major financial instruments include trade receivables, other receivables and deposits, bank deposits, cash and cash equivalents, trade payables, accruals and other payables, bank borrowings, and lease liabilities[56](index=56&type=chunk) - Management manages the related risks to ensure that appropriate measures are implemented in a timely and effective manner[56](index=56&type=chunk) [Employees and Remuneration Policies](index=17&type=section&id=Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the Group had 142 employees, with remuneration packages determined by qualifications, position, and performance, and director remuneration set by the Board based on committee recommendations Number of Employees | Period | Number of Employees | | :--- | :--- | | June 30, 2025 | 142 | | December 31, 2024 | 137 | - Remuneration packages, including salary and bonuses, are determined based on **qualifications, position, rank, and annual performance appraisals**[57](index=57&type=chunk) [Events after the Reporting Period](index=17&type=section&id=Events%20after%20the%20Reporting%20Period) No other significant events occurred between the end of the reporting period and the date of this interim results announcement - No other significant events have occurred from the end of the reporting period up to the date of this interim results announcement[58](index=58&type=chunk) [Use of Proceeds](index=17&type=section&id=Use%20of%20Proceeds) Net proceeds from the March 2024 listing were approximately HK$91.0 million, of which HK$57.2 million has been used, with the remainder allocated for land acquisition and manpower expansion - The net proceeds from the share offer were approximately **HK$91.0 million**[59](index=59&type=chunk) Use of Net Proceeds (HK$ million) | Use | Intended Use | Utilised as of Dec 31, 2024 | Utilised for the six months ended Jun 30, 2025 | Actual Utilised as of Jun 30, 2025 | Unutilised as of Jun 30, 2025 | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Funding upfront project costs | 56.0 | 56.0 | – | 56.0 | – | N/A | | Acquiring a plot of land and establishing a new production facility | 33.1 | – | – | – | 33.1 | Dec 2025 | | Expanding and strengthening manpower | 1.9 | 0.6 | 0.6 | 1.2 | 0.7 | Dec 2025 | | **Total** | **91.0** | **56.6** | **0.6** | **57.2** | **33.8** | | - The expansion of manpower has been delayed, but the Group will continue to actively recruit potential candidates[60](index=60&type=chunk) [Future Plans for Material Investments and Capital Assets](index=18&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no other plans for material investments or capital assets beyond those disclosed in the prospectus - Other than as disclosed in the "Future Plans and Use of Proceeds" section of the prospectus, the Group had **no other plans for material investments and capital assets** as at June 30, 2025[62](index=62&type=chunk) [Dividends](index=18&type=section&id=Dividends) The Board resolved not to recommend an interim dividend for the six months ended June 30, 2025; an interim dividend of approximately HK$26.586 million was declared in January 2024 - The Board of Directors has resolved **not to recommend the payment of an interim dividend** for the six months ended June 30, 2025[63](index=63&type=chunk) - In January 2024, the Company declared an interim dividend of approximately **HK$26.586 million**[63](index=63&type=chunk) [Corporate Governance and Other Disclosures](index=19&type=section&id=Corporate%20Governance%20and%20Other%20Disclosures) The Group is committed to high standards of corporate governance, complying with the Corporate Governance Code, and this section covers related disclosures on securities dealings, share options, and audit committee functions [Corporate Governance Code](index=19&type=section&id=Corporate%20Governance%20Code) The Company is committed to maintaining high standards of corporate governance and has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules - The Company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[64](index=64&type=chunk) - For the six months ended June 30, 2025, the Company has **complied with the applicable code provisions** of the Corporate Governance Code[64](index=64&type=chunk) [Model Code for Securities Transactions](index=19&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all Directors have confirmed their compliance for the six months ended June 30, 2025 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[65](index=65&type=chunk) - All Directors have confirmed their **compliance with the required standards** set out in the Model Code for the six months ended June 30, 2025[65](index=65&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=19&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) 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 - During the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries had purchased, sold or redeemed** any of the Company's listed securities[66](index=66&type=chunk) [Share Option Scheme](index=19&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on February 5, 2024, for a period of 10 years, and no options were granted, exercised, cancelled, forfeited, or lapsed during the period - The Company adopted a share option scheme on **February 5, 2024**, which is valid for a period of 10 years[67](index=67&type=chunk) - For the six months ended June 30, 2025, **no share options were granted, exercised, cancelled, forfeited, or lapsed** under the scheme[67](index=67&type=chunk) [Management Contracts](index=19&type=section&id=Management%20Contracts) No contracts concerning the management and administration of the whole or any substantial part of the Company's business were entered into or existed during the period, other than service contracts with directors or employees - During the six months ended June 30, 2025, **no contracts concerning the management and administration** of the whole or any substantial part of the Company's business were entered into or existed, other than service contracts[68](index=68&type=chunk) [Sufficient Public Float](index=19&type=section&id=Sufficient%20Public%20Float) Based on publicly available information, the Company has maintained a public float of at least 25% of its total issued share capital during the six months ended June 30, 2025 - During the six months ended June 30, 2025, at least **25% of the Company's total issued share capital** was held by the public[69](index=69&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, is responsible for overseeing financial reporting, internal controls, and the external audit process - The Audit Committee comprises independent non-executive Directors **Mr. Yu Chun Fai (Chairman), Mr. Che Hao Hua, and Mr. Liu Chi Keung**[70](index=70&type=chunk) - Its primary duties include recommending the appointment of external auditors, reviewing financial statements, and overseeing the financial reporting process, internal controls, and risk management systems[70](index=70&type=chunk) [Audit Committee's Review of Interim Financial Results](index=20&type=section&id=Audit%20Committee's%20Review%20of%20Interim%20Financial%20Results) The Audit Committee has reviewed the Group's unaudited interim financial information for the period and confirmed its compliance with applicable accounting standards and disclosure requirements - The Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, has been **reviewed by the Company's Audit Committee**[71](index=71&type=chunk) - The Audit Committee is of the opinion that the preparation of such financial information complies with applicable accounting standards and requirements, as well as the Listing Rules, and that adequate disclosures have been made[71](index=71&type=chunk) [Publication of Interim Results and Interim Report](index=20&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement and interim report are available on the websites of the Company and the Hong Kong Stock Exchange - The interim results announcement and interim report are published on the Company's website at **www.wing-kei.com.hk** and the Stock Exchange's website at **www.hkexnews.hk**[72](index=72&type=chunk) [Appreciation](index=20&type=section&id=Appreciation) The Board extends its sincere gratitude to the management, staff, shareholders, business partners, and other professional parties for their hard work, dedication, and continuous support - The Board expresses its sincere gratitude to the Group's management and all staff for their hard work and dedication, and to shareholders, business partners, and other professional parties for their support[73](index=73&type=chunk) [Board of Directors](index=20&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board comprises four executive directors, two non-executive directors, and three independent non-executive directors - The Board of Directors includes **executive Directors** Mr. Chan Yam Ki, Mr. Chan Yam Kong, Ms. Chan Suk Man, and Mr. Cheung Wang Fai[74](index=74&type=chunk) - **Non-executive Directors** include Mr. Chan Wing Hong and Ms. Choi Chik Cheong[74](index=74&type=chunk) - **Independent non-executive Directors** include Mr. Che Hao Hua, Mr. Yu Chun Fai, and Mr. Liu Chi Keung[74](index=74&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致之任何損失承擔任何責任。 力高健康生活有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈，本公司及 其附屬公司（統稱「本集團」或「我們」）截至二零二五年六月三十日止六個月的未經審 核綜合中期業績連同二零二四年同期比較數字如下： Redco Healthy Living Company Limited 力高健康生活有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2370） 截至二零二五年六月三十日止六個月 的未經審核中期業績公告 財務摘要 – 1 – ‧ 截至二零二五年六月三十日止六個月的收益約為人民幣209.0百萬元，較二零 二四年同期約人民幣212.1百萬元減少約1.5%。 ‧ 截至二零二五年六月三十日止六個月的毛利約為人民幣52.2百萬元，較二零 二四年同期約人民幣57.2百萬元減少約8.6%。 ‧ 截至二零二五年六月三十日止六個月的毛利率約為 25.0%，而二零二四年同 期約為27.0%。 ‧ 本集團截 ...

[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This chapter outlines ASMPT Limited's basic company information, including board members, company secretary, auditor, principal bankers, and headquarters and registered office details - Board composition includes Independent Non-executive Directors (Chairman Mr. Lo Kam Chor, Mr. Cheung Yeung Hok, Ms. Siu Kit Yee, Ms. Xu Mingming), Non-executive Directors (Mr. Hichem M'Saad, Mr. Paulus Antonius Henricus Verhagen), and Executive Directors (Mr. Wong Chi Tat, Mr. Guenter Walter Lauber)[5](index=5&type=chunk) - Company Secretary is Mr. Kong Chun, and the Auditor is Deloitte Touche Tohmatsu[5](index=5&type=chunk) - Principal Bankers include The Hongkong and Shanghai Banking Corporation Limited, MUFG Bank, and Deutsche Bank[5](index=5&type=chunk) - Company headquarters are in Singapore, with the registered office in the Cayman Islands[5](index=5&type=chunk) [Financial Highlights](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This chapter reports ASMPT Limited's key financial data for Q2 and H1 2025 and sales revenue forecast for Q3 2025, emphasizing strong demand driven by the AI wave - Q3 2025 sales revenue is forecast to be between **US$445 million and US$505 million**, representing a **10.8% year-on-year increase** and an **8.9% quarter-on-quarter increase** at the midpoint[10](index=10&type=chunk) 2025 Q2 Group Financial Highlights | Indicator | Amount (HK$ million) | Quarter-on-quarter change | Year-on-year change | | :--- | :--- | :--- | :--- | | Sales Revenue | 3,401.7 | +8.9% | +1.8% | | Total New Orders | 3,753.5 | +11.9% | +20.2% | | Gross Margin | 39.7% | -119 basis points | -33 basis points | | Operating Profit | 169.4 | +5.9% | +25.4% | | Profit | 134.3 | +62.6% | -1.7% | | Basic Earnings Per Share | HK$0.32 | +60.0% | -3.0% | 2025 H1 Group Financial Highlights | Indicator | Amount (HK$ million) | Half-year-on-half-year change | Year-on-year change | | :--- | :--- | :--- | :--- | | Sales Revenue | 6,526.3 | -3.3% | +0.7% | | Total New Orders | 7,107.9 | +10.5% | +12.4% | | Gross Margin | 40.3% | +121 basis points | -65 basis points | | Operating Profit | 329.3 | +79.5% | -12.2% | | Profit | 216.9 | +672.7% | -30.9% | | Basic Earnings Per Share | HK$0.52 | +642.9% | -31.6% | - **Gross margin exceeded 40%** in H1 2025[13](index=13&type=chunk) - **New orders exceeded expectations**, with TCB leading in logic and memory, and mainstream business benefiting from AI[13](index=13&type=chunk) [Chairman's Statement](index=6&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) The Chairman's Statement details ASMPT Limited's H1 2025 operating results, financial position, business highlights, future outlook, and corporate development strategies, emphasizing AI-driven advanced packaging growth and China market demand [Performance Summary](index=6&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) This section outlines ASMPT Limited's sales revenue, profit after tax, and basic earnings per share for H1 2025, showing a slight increase in sales revenue but a decrease in profit - Group recorded **sales revenue of HK$6.53 billion (US$838 million)** for the six months ended June 30, 2025, a **0.7% year-on-year increase**[16](index=16&type=chunk) - Consolidated profit after tax for H1 2025 was **HK$217 million**, a **30.9% year-on-year decrease**[16](index=16&type=chunk) - Basic earnings per share for H1 2025 was **HK$0.52**, a **31.6% year-on-year decrease**[16](index=16&type=chunk) [Dividends](index=6&type=section&id=%E8%82%A1%E6%81%AF) This section discloses the Board's declaration of an interim dividend of HK$0.26 per share for 2025, a decrease from the previous year - ASMPT Limited's Board of Directors is pleased to declare an **interim dividend of HK$0.26 per share** (2024: HK$0.35)[17](index=17&type=chunk) - The dividend will be paid to shareholders whose names appear on the Company's register of members on August 15, 2025[17](index=17&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) Management discussion and analysis delves into the Group's H1 2025 business performance, highlighting strong growth in advanced packaging, AI and China market-driven demand in mainstream business, financial review of segments, and future outlook [Group Business Review for H1 2025](index=6&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E9%9B%86%E5%9C%98%E6%A5%AD%E5%8B%99%E6%91%98%E8%A6%81) This section outlines the Group's significant growth in advanced packaging (especially TCB tools in AI and HBM) and mainstream business driven by AI data centers and China market demand in H1 2025 [Advanced Packaging: Significant Growth Potential](index=6&type=section&id=%E5%85%88%E9%80%B2%E5%B0%81%E8%A3%9D%20%EF%BC%9A%E5%A2%9E%E9%95%B7%E6%BD%9B%E5%8A%9B%E9%A1%AF%E8%91%97) The Group's advanced packaging business achieved significant growth in H1 2025, driven by the AI wave, with strong performance in TCB tools for memory and logic applications, and progress in hybrid bonding, photonics, and co-packaged optics - Advanced packaging accounted for approximately **39% of total Group sales revenue** in H1 2025, or about **US$326 million**, primarily contributed by Thermo-Compression Bonding (TCB)[20](index=20&type=chunk) - **TCB orders increased by 50% year-on-year**, driven by preference from major AI companies and customer base expansion, strengthening market position in logic and High Bandwidth Memory (HBM) supply chains[21](index=21&type=chunk) - Group successfully completed installation of **bulk TCB tool orders for a leading HBM customer**, fully meeting their 12-layer HBM3E mass production requirements, and commenced 12-layer HBM4 small-batch production for another key HBM customer[22](index=22&type=chunk) - Group's technological advantage in **Active Oxidation Removal (AOR) capabilities** supports customers adopting next-generation HBM in the HBM4 and above market[22](index=22&type=chunk) - In **Chip-to-Substrate (C2S) applications**, the Group secured additional TCB orders from a leading foundry's OSAT partner as the sole supplier[23](index=23&type=chunk) - New generation **Hybrid Bonding (HB) tools** offer competitive alignment and bonding accuracy, footprint, and throughput, with delivery of second-generation tools to an HBM customer expected in Q3[24](index=24&type=chunk) - Group's **photonics tools** can package higher bandwidth transceivers, especially 800G and above, with order momentum expected to continue from global transceiver manufacturers serving all major AI companies[25](index=25&type=chunk) - **System-in-Package (SiP) business** secured orders for RF modules and wearables from a global leading high-end smartphone company and delivered new generation chip assembly tools to leading foundries and OSATs[26](index=26&type=chunk) [Mainstream Business: AI and China Market Driven Demand](index=8&type=section&id=%E4%B8%BB%E6%B5%81%E6%A5%AD%E5%8B%99%20%EF%BC%9A%E4%BA%BA%E5%B7%A5%E6%99%BA%E8%83%BD%E5%8F%8A%E4%B8%AD%E5%9C%8B%E5%B8%82%E5%A0%B4%E6%8E%A8%E5%8B%95%E9%9C%80%E6%B1%82) The Group's mainstream business is benefiting from the demand for new power management functions in AI data centers and strong order growth from the China market in EV and consumer electronics - Demand from **AI data centers** has begun to benefit the Group's mainstream business, driven by increasing demand for new power management functions, boosting demand for wire bonders and die attach equipment in the Semiconductor Solutions segment and placement tools in the SMT Solutions segment[27](index=27&type=chunk) - In H1 2025, **orders from China** also recorded strong half-year-on-half-year and year-on-year growth, primarily benefiting from increased utilization in the SMT Solutions segment for AI and EV, and in the Semiconductor Solutions segment for consumer electronics and EV end markets[27](index=27&type=chunk) [Group Financial Review](index=8&type=section&id=%E9%9B%86%E5%9C%98%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides detailed financial data for the Group's Q2 and H1 2025, including new orders, sales revenue, gross margin, operating profit, and profit, analyzing contributions from various end markets and regions [Group Financial Review for H1 2025](index=8&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E9%9B%86%E5%9C%98%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed review of the Group's sales revenue, new orders, gross margin, operating profit, and profit performance for H1 2025, analyzing contributions from various end markets and regions 2025 H1 Group Financial Data | Indicator | Amount (HK$ million) | Half-year-on-half-year change | Year-on-year change | | :--- | :--- | :--- | :--- | | Total New Orders | 7,107.9 | +10.5% | +12.4% | | Sales Revenue | 6,526.3 | –3.3% | +0.7% | | Gross Margin | 40.3% | +121 basis points | –65 basis points | | Operating Profit | 329.3 | +79.5% | –12.2% | | Profit | 216.9 | +672.7% | –30.9% | | Profit Margin | 3.3% | +291 basis points | –152 basis points | - H1 sales revenue was **HK$6.53 billion (US$838 million)**, a **0.7% year-on-year increase** but a **3.3% half-year-on-half-year decrease**[30](index=30&type=chunk) - Semiconductor Solutions segment recorded strong **year-on-year growth of 31.7%** and **half-year-on-half-year growth of 6.1%**, while SMT Solutions segment revenue decreased year-on-year and half-year-on-half-year[30](index=30&type=chunk) - **Computer end market** was the largest contributor to total Group sales revenue, accounting for **30%**, primarily benefiting from AI-related applications and new applications for AI data center energy management[30](index=30&type=chunk) - **Automotive end market** was the second largest source of total Group sales revenue, accounting for **15%**, with performance still benefiting from EV demand in China[31](index=31&type=chunk) - **Communications end market** accounted for **13% of total Group sales revenue**, continuously driven by demand for photonics and high-end smartphone-related applications[32](index=32&type=chunk) - **Consumer end market** accounted for **12% of total Group sales revenue**, driven by mainstream products in the Semiconductor Solutions segment, especially in the China market[33](index=33&type=chunk) - By region, **sales revenue in China increased year-on-year to 36.7%** of total Group sales revenue, **Korea to 13.6%**, and **Taiwan to 10.6%**, while sales revenue in Europe and America decreased year-on-year[34](index=34&type=chunk) - Total new orders for the Group were **HK$7.11 billion (US$913 million)**, a **10.5% half-year-on-half-year increase** and a **12.4% year-on-year increase**[34](index=34&type=chunk) - Group gross margin was **40.3%**, improving by **121 basis points half-year-on-half-year** (primarily driven by segment mix) but decreasing by **65 basis points year-on-year** (due to lower sales volume and unfavorable product mix in the SMT Solutions segment)[34](index=34&type=chunk) - Group operating profit was **HK$329 million**, increasing by **79.5% half-year-on-half-year** (driven by improved gross margin and reduced operating expenses) but decreasing by **12.2% year-on-year** (primarily due to lower gross margin)[35](index=35&type=chunk) - As of June 30, 2025, the Group's cash and bank deposits were **HK$5.00 billion**, with **net cash of HK$2.33 billion**, maintaining a strong balance sheet[36](index=36&type=chunk) [Group Financial Review for Q2 2025](index=9&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E9%9B%86%E5%9C%98%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed review of the Group's sales revenue, new orders, gross margin, operating profit, and profit performance for Q2 2025, analyzing contributions from various segments 2025 Q2 Group Financial Data | Indicator | Amount (HK$ million) | Quarter-on-quarter change | Year-on-year change | | :--- | :--- | :--- | :--- | | Total New Orders | 3,753.5 | +11.9% | +20.2% | | Sales Revenue | 3,401.7 | +8.9% | +1.8% | | Gross Margin | 39.7% | –119 basis points | –33 basis points | | Operating Profit | 169.4 | +5.9% | +25.4% | | Profit | 134.3 | +62.6% | –1.7% | | Profit Margin | 3.9% | +131 basis points | –14 basis points | - Group sales revenue was **HK$3.40 billion (US$436 million)**, an **8.9% quarter-on-quarter increase** and a **1.8% year-on-year increase**, with quarter-on-quarter improvement primarily due to growth in the SMT Solutions segment[37](index=37&type=chunk) - Total new orders for the Group were **HK$3.75 billion (US$482 million)**, an **11.9% quarter-on-quarter increase** and a **20.2% year-on-year increase**, with an order-to-shipment ratio of 1.10[38](index=38&type=chunk) - Group gross margin was **39.7%**, decreasing by **119 basis points quarter-on-quarter** and **33 basis points year-on-year**[38](index=38&type=chunk) - Group operating profit was **HK$169 million**, increasing by **5.9% quarter-on-quarter** and **25.4% year-on-year**[38](index=38&type=chunk) - Adjusted profit was **HK$135 million**, increasing by **62.1% quarter-on-quarter** but decreasing by **1.6% year-on-year**[38](index=38&type=chunk) [Semiconductor Solutions Segment Financial Review for Q2 2025](index=10&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E5%8D%8A%E5%B0%8E%E9%AB%94%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88%E5%88%86%E9%83%A8%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reports the Semiconductor Solutions segment's sales revenue, new orders, gross margin, and segment profit for Q2 2025, showing significant growth in sales revenue and profit but a decrease in new orders 2025 Q2 Semiconductor Solutions Segment Financial Data | Indicator | Amount (HK$ million) | Quarter-on-quarter change | Year-on-year change | | :--- | :--- | :--- | :--- | | Total New Orders | 1,655.4 | –4.5% | –4.6% | | Sales Revenue | 2,010.2 | +1.0% | +20.9% | | Gross Margin | 44.7% | –161 basis points | +19 basis points | | Segment Profit | 174.9 | –25.9% | +99.8% | | Segment Profit Margin | 8.7% | –316 basis points | +343 basis points | - Semiconductor Solutions segment sales revenue for Q2 2025 was **HK$2.01 billion (US$258 million)**, a **1% quarter-on-quarter increase** and a **20.9% year-on-year increase**, accounting for approximately **59% of total Group sales revenue**[41](index=41&type=chunk) - **TCB tools** were the largest contributor to Q2 total sales revenue, with wire bonders and die attach equipment showing quarter-on-quarter and year-on-year growth[41](index=41&type=chunk) - Total new orders for the Semiconductor Solutions segment in Q2 2025 were **HK$1.66 billion (US$213 million)**, a **4.5% quarter-on-quarter decrease** and a **4.6% year-on-year decrease**, primarily due to uneven advanced packaging orders leading to a decrease in TCB orders[41](index=41&type=chunk) - Segment profit was **HK$175 million**, a **25.9% quarter-on-quarter decrease** but a **99.8% year-on-year increase**[41](index=41&type=chunk) [SMT Solutions Segment Financial Review for Q2 2025](index=11&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E8%A1%A8%E9%9D%A2%E8%B2%BC%E8%A3%9D%E6%8A%80%E8%A1%93%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88%E5%88%86%E9%83%A8%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reports the SMT Solutions segment's sales revenue, new orders, gross margin, and segment profit for Q2 2025, showing quarter-on-quarter growth in sales revenue and new orders but a year-on-year decrease 2025 Q2 SMT Solutions Segment Financial Data | Indicator | Amount (HK$ million) | Quarter-on-quarter change | Year-on-year change | | :--- | :--- | :--- | :--- | | Total New Orders | 2,098.0 | +29.4% | +51.2% | | Sales Revenue | 1,391.5 | +22.6% | –17.2% | | Gross Margin | 32.5% | +108 basis points | –311 basis points | | Segment Profit | 53.4 | NM | –71.9% | | Segment Profit Margin | 3.8% | +431 basis points | –749 basis points | - SMT Solutions segment sales revenue for Q2 2025 was **HK$1.39 billion (US$179 million)**, a **22.6% quarter-on-quarter increase** but a **17.2% year-on-year decrease**[42](index=42&type=chunk) - Total new orders were **HK$2.10 billion (US$269 million)**, a **29.4% quarter-on-quarter increase** and a **51.2% year-on-year increase**, driven by bulk orders to diversify the supply chain of a leading smartphone end customer and orders in the AI server market[43](index=43&type=chunk) - Segment gross margin was **32.5%**, increasing by **108 basis points quarter-on-quarter** but decreasing by **311 basis points year-on-year**[43](index=43&type=chunk) - Segment profit for Q2 2025 was **HK$53.4 million**, increasing quarter-on-quarter but decreasing by **71.9% year-on-year**[44](index=44&type=chunk) [Outlook](index=11&type=section&id=%E5%89%8D%E6%99%AF) The Group has an optimistic sales revenue forecast for Q3 2025, expecting continued growth in advanced packaging and benefits for the SMT Solutions segment, though the overall automotive and industrial markets are anticipated to remain soft in the short term - Group expects Q3 2025 sales revenue to be between **US$445 million and US$505 million**, representing a **10.8% year-on-year increase** and an **8.9% quarter-on-quarter increase** at the midpoint, exceeding market expectations[45](index=45&type=chunk) - Advanced packaging will continue to grow, benefiting from the AI wave and the Group's technological leadership, with the total potential market for TCB projected to reach **US$1.0 billion by 2027**[45](index=45&type=chunk) - The Group's mainstream business will benefit from momentum in the China market and opportunities arising from emerging demand in AI data centers[45](index=45&type=chunk) - The overall **automotive and industrial end markets** are expected to remain soft in the short term[45](index=45&type=chunk) - The Group will continue to closely monitor tariff policy uncertainties and adjust as needed[45](index=45&type=chunk) [Research and Development](index=12&type=section&id=%E7%A0%94%E7%A9%B6%E5%8F%8A%E7%99%BC%E5%B1%95) The Group remains committed to investing in R&D, particularly in TCB and hybrid bonding technologies, to maintain technological leadership and capture growth opportunities - The Group has approximately **2,300 R&D personnel globally**, with multiple R&D centers in Asia, Europe, and America[46](index=46&type=chunk) - In H1 2025, the Group invested approximately **HK$1.0 billion in R&D**, with over **2,000 patents and trademarks** published and pending applications to date[46](index=46&type=chunk) - In 2025, the Group has prioritized increasing R&D investment focused on **TCB and hybrid bonding**[46](index=46&type=chunk) [Liquidity and Financial Position](index=12&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) The Group maintains robust cash and bank deposit levels, prioritizes capital allocation for future growth investments, and adheres to a dividend policy of approximately 50% of annual profit - As of June 30, 2025, the Group's cash and bank deposit balance was **HK$5.00 billion**, with **net cash of HK$2.33 billion**[47](index=47&type=chunk) - The Group's equity-to-debt ratio was **0.162**, with available bank facilities of **HK$2.68 billion (US$341 million)**[47](index=47&type=chunk) - The Group utilized interest rate swap contracts to mitigate cash flow risk from floating-rate syndicated loans by converting **HK$750 million** of syndicated loans from floating to fixed rates[48](index=48&type=chunk) - The Group's current dividend policy is to distribute approximately **50% of annual profit** as dividends[36](index=36&type=chunk) [Significant Investments](index=13&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) This section discloses details of the Group's significant investment in Advanced Assembly Materials International Limited (AAMI) and mentions plans to dispose of its equity interest in AAMI - Advanced Assembly Materials International Limited (AAMI) is considered a significant investment for the Group, with its investment value accounting for **6.7% of the Group's total assets**[49](index=49&type=chunk) AAMI Investment Details | Indicator | Details | | :--- | :--- | | Details of Investment in AAMI | 5,338 ordinary shares of AAMI, representing 49% equity interest in AAMI. Investment cost was HK$1.70 billion. | | Fair Value of Investment in AAMI | HK$1.88 billion | | Investment Size Relative to Group's Total Assets | 6.7% | | Performance of Investment in AAMI | Share of results from AAMI was HK$13 million for the year ended June 30, 2025, with no dividends received from AAMI. | | Principal Business of AAMI and its Subsidiaries | Production and trading of material products | | Group's Investment Strategy | Long-term investment in the materials industry | - The Group intends to sell its equity interest in AAMI to Shenzhen Zhizheng Polymer Material Co., Ltd. in exchange for new shares to be issued by SOAC, with the remaining consideration received in cash, subject to regulatory approvals[49](index=49&type=chunk) [Human Resources](index=13&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) The Group is committed to modernizing and standardizing human resources through a global HRIS, leadership development, succession planning, and women empowerment initiatives to enhance employee experience and recognize contributions - The Group has fully implemented the **ASMPT Global Human Resources Information System (HRIS)** as the primary platform for managing HR processes and ensuring global operational consistency and efficiency[50](index=50&type=chunk) - The Group is continuously committed to **leadership development and succession planning**, establishing development centers, collaborating with world-class universities for leadership programs, and offering mentorship programs[51](index=51&type=chunk) - The Group empowers women and promotes male allies through ongoing networking and communication activities, encouraging active male participation to foster a more inclusive and supportive environment[51](index=51&type=chunk) - The Group launched its inaugural **SPARKS Awards** to recognize and celebrate employees who demonstrate excellence, innovation, and go above and beyond to embody ASMPT's POWER values[52](index=52&type=chunk) - As of June 30, 2025, the Group employed approximately **10,300 staff**, with total employee costs for H1 2025 amounting to **HK$2.54 billion**[52](index=52&type=chunk) [Reconciliation of HKFRS and Non-HKFRS Measures](index=14&type=section&id=%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F%E8%88%87%E9%9D%9E%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F%E4%B9%8B%E5%B0%8D%E8%B3%AC) This section provides a reconciliation of the Group's financial data measured under HKFRS and non-HKFRS to offer more comprehensive information on ongoing operating performance - The Group has provided **adjusted profit and adjusted earnings per share** as supplementary information to the consolidated results presented under HKFRS, offering useful additional insights into the Group's ongoing operating performance[53](index=53&type=chunk) - Adjusted profit and adjusted earnings per share exclude restructuring costs primarily related to employee severance and benefit arrangements, as well as legal and professional fees incurred in Q4 2024 related to a possible offer under Rule 3.7 of the Hong Kong Code on Takeovers and Mergers[53](index=53&type=chunk) 2025 Q2 Profit Reconciliation | Indicator | As Reported (HK$ thousand) | Restructuring Costs (HK$ thousand) | Income Tax Impact (HK$ thousand) | Adjusted (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | 134,338 | 755 | (210) | 134,883 | | Profit Margin | 3.9% | | | 4.0% | | Basic Earnings Per Share | HK$0.32 | | | HK$0.32 | 2025 H1 Profit Reconciliation | Indicator | As Reported (HK$ thousand) | Restructuring Costs (HK$ thousand) | Income Tax Impact (HK$ thousand) | Adjusted (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | 216,932 | 1,634 | (459) | 218,107 | | Profit Margin | 3.3% | | | 3.3% | | Basic Earnings Per Share | HK$0.52 | | | HK$0.52 | [Review Report on Condensed Consolidated Financial Statements](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Deloitte Touche Tohmatsu reviewed ASMPT Limited's condensed consolidated financial statements for the six months ended June 30, 2025, concluding that they are prepared in all material respects in accordance with HKAS 34 - The auditor conducted the review in accordance with **Hong Kong Standard on Review Engagements 2410**, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity," issued by the Hong Kong Institute of Certified Public Accountants[61](index=61&type=chunk) - As the scope of a review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, the auditor does not provide assurance that all significant matters that might be identified in an audit would be detected, and therefore, **no audit opinion is expressed**[61](index=61&type=chunk) - Based on the review, the auditor has not become aware of any matter that causes them to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with **HKAS 34**[62](index=62&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=18&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) This chapter presents ASMPT Limited's condensed consolidated statement of profit or loss for the six months ended June 30, 2025, detailing key financial indicators such as sales revenue, gross profit, various expenses, profit before tax, and profit for the period, with comparative figures for the prior year 2025 H1 Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sales Revenue | 6,526,307 | 6,480,996 | | Cost of Sales | (3,897,356) | (3,828,396) | | Gross Profit | 2,628,951 | 2,652,600 | | Other Income | 79,988 | 160,436 | | Selling and Distribution Expenses | (755,870) | (732,519) | | General and Administrative Expenses | (526,505) | (552,059) | | Research and Development Expenses | (1,017,284) | (993,154) | | Profit Before Tax | 213,301 | 454,881 | | Income Tax Credit (Expense) | 3,631 | (140,730) | | Profit for the Period | 216,932 | 314,151 | | Profit Attributable to Owners of the Company | 214,852 | 314,967 | | Basic Earnings Per Share | HK$0.52 | HK$0.76 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=19&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This chapter presents ASMPT Limited's condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, showing profit for the period and other comprehensive income (expense) items, including exchange differences and fair value changes of hedging instruments, leading to total comprehensive income 2025 H1 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 216,932 | 314,151 | | Other Comprehensive Income (Expense) | | | | — Net fair value gain (impairment) on equity instruments at fair value through other comprehensive income | 727 | (405) | | — Exchange differences on translation of overseas operations | 1,032,847 | (275,329) | | — Fair value impairment of hedging instruments designated as cash flow hedges | (24,859) | (24,427) | | Other Comprehensive Income (Expense) for the Period | 1,022,189 | (303,705) | | Total Comprehensive Income for the Period | 1,239,121 | 10,446 | | Total Comprehensive Income Attributable to Owners of the Company | 1,235,442 | 12,017 | [Condensed Consolidated Statement of Financial Position](index=20&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This chapter presents ASMPT Limited's condensed consolidated statement of financial position as of June 30, 2025, listing major financial components such as non-current assets, current assets, current liabilities, non-current liabilities, and capital and reserves, with comparative figures for December 31, 2024 Condensed Consolidated Statement of Financial Position as of June 30, 2025 (Selected Key Indicators) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 2,141,578 | 2,117,412 | | Goodwill | 990,232 | 954,118 | | Interests in Joint Ventures | 1,698,041 | 1,671,807 | | **Current Assets** | | | | Inventories | 6,600,575 | 5,989,018 | | Trade and Other Receivables | 4,414,154 | 3,748,892 | | Cash and Cash Equivalents | 4,087,141 | 4,417,710 | | **Current Liabilities** | | | | Trade and Other Payables | 2,450,805 | 2,323,711 | | Customer Advances | 1,121,994 | 643,693 | | Bank Borrowings (Current) | 417,450 | 306,205 | | **Total Equity** | 16,422,092 | 15,291,501 | | **Non-current Liabilities** | | | | Bank Borrowings (Non-current) | 2,250,000 | 2,375,000 | [Condensed Consolidated Statement of Changes in Equity](index=22&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This chapter presents ASMPT Limited's condensed consolidated statement of changes in equity for the six months ended June 30, 2025, detailing opening balances, profit for the period, other comprehensive income, and dividend payments for equity items such as share capital, share premium, various reserves, and retained earnings 2025 H1 Changes in Equity | Indicator | January 1, 2025 (HK$ thousand) | Profit for the Period (HK$ thousand) | Total Other Comprehensive Income (HK$ thousand) | Dividends Paid (HK$ thousand) | June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 15,188,039 | 214,852 | 1,235,442 | (233,386) | 16,314,698 | | Non-controlling Interests | 103,462 | 2,080 | 3,679 | 0 | 107,394 | | **Total Equity** | **15,291,501** | **216,932** | **1,239,121** | **(233,386)** | **16,422,092** | - Equity-settled share-based payment expenses recognized: **HK$37,071 thousand**[72](index=72&type=chunk) - **2024 special dividend of HK$104,115 thousand** and **2024 final dividend of HK$29,152 thousand** were paid[72](index=72&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=24&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%AE%8A%E5%8B%95%E8%A1%A8) This chapter presents ASMPT Limited's condensed consolidated statement of cash flows for the six months ended June 30, 2025, detailing cash flows from operating, investing, and financing activities, as well as the net change in cash and cash equivalents 2025 H1 Condensed Consolidated Statement of Cash Flows | Activity Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash (Outflow) Inflow from Operating Activities | (113,207) | 833,918 | | Net Cash Outflow from Investing Activities | (290,891) | (453,891) | | Net Cash Outflow from Financing Activities | (336,001) | (31,442) | | Net (Decrease) Increase in Cash and Cash Equivalents | (740,099) | 348,585 | | Cash and Cash Equivalents at End of Period | 4,087,141 | 4,690,048 | - Net cash outflow from operating activities was **HK$113,207 thousand** in H1 2025, compared to an inflow of **HK$833,918 thousand** in the same period last year[76](index=76&type=chunk) - Net cash outflow from financing activities was **HK$336,001 thousand** in H1 2025, primarily including **HK$133,267 thousand** for dividend payments and **HK$123,248 thousand** for repayment of lease liabilities[76](index=76&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=25&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This chapter provides notes to the condensed consolidated financial statements, explaining the basis of preparation, accounting policies, segment information, composition and changes of various financial indicators, significant investments, related party transactions, and fair value measurement of financial instruments [Basis of Preparation](index=25&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section clarifies that the condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting" - These condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants[77](index=77&type=chunk) - These condensed consolidated financial statements do not include all the information required for a full set of financial statements prepared in accordance with HKFRS and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[77](index=77&type=chunk) [Accounting Policies](index=25&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This section describes the accounting policies adopted for the condensed consolidated financial statements, primarily based on historical cost, and notes that the first-time adoption of revised HKFRS in the current period had no significant impact on the financial position - These condensed consolidated financial statements are prepared on the **historical cost basis**, except for derivative financial instruments, other investments, and certain financial liabilities measured at fair value at the end of the reporting period[78](index=78&type=chunk) - The adoption of revised HKFRS during this interim period had **no significant impact** on the Group's financial position and performance for the current and prior periods and/or the disclosures presented in these condensed consolidated financial statements[79](index=79&type=chunk) [Segment Information](index=25&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) This section provides the Group's sales revenue and performance information segmented by Semiconductor Solutions and SMT Solutions, and further breaks down sales revenue by customer region - The Group has two operating segments: development, production, and sale of (1) **Semiconductor Solutions** and (2) **SMT Solutions**[80](index=80&type=chunk) 2025 H1 Segment Sales Revenue and Performance | Segment | Sales Revenue (HK$ thousand) | Performance (HK$ thousand) | | :--- | :--- | :--- | | Semiconductor Solutions | 3,999,932 | 410,815 | | SMT Solutions | 2,526,375 | 48,136 | | **Total** | **6,526,307** | **458,951** | 2025 H1 Sales Revenue by Customer Region | Region | Sales Revenue (HK$ thousand) | | :--- | :--- | | China | 2,397,837 | | Korea | 884,760 | | Americas | 801,300 | | Europe | 745,177 | | Taiwan | 692,121 | [Profit Before Tax](index=28&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E7%9B%88%E5%88%A9) This section discloses the composition of the Group's profit before tax, including major deductions (or additions) such as depreciation, amortization, and government grants 2025 H1 Profit Before Tax Items Deducted (or Added) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 168,400 | 178,036 | | Depreciation of Right-of-Use Assets | 121,791 | 120,500 | | Amortization of Intangible Assets | 47,058 | 56,613 | | Government Grants | (9,326) | (8,652) | [Other Gains and Losses, Net](index=28&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D%EF%BC%8C%E6%B7%A8%E5%80%BC) This section explains the main components of other gains and losses, net, for the period, including net foreign exchange losses and net gains from disposal/write-off of property, plant and equipment - During the period, other gains and losses (net) primarily included **net foreign exchange losses and fair value changes of foreign currency forward contracts of HK$85.4 million** (six months ended June 30, 2024: net gain of HK$17.5 million)[85](index=85&type=chunk) - Net gain from disposal/write-off of property, plant and equipment was **HK$3.8 million** (six months ended June 30, 2024: net loss of HK$2.6 million)[85](index=85&type=chunk) [Finance Costs](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) This section details the Group's finance costs for the period, primarily comprising interest on bank borrowings, interest on lease liabilities, and net loss from interest rate swap contracts 2025 H1 Finance Costs | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 49,914 | 63,540 | | Interest on Discounted Bills | 3,198 | 647 | | Interest on Lease Liabilities | 32,930 | 36,092 | | Others | 2,194 | 5,265 | | Net Loss (Gain) on Interest Rate Swap Contracts Designated as Cash Flow Hedges | 1,699 | (9,713) | | **Total** | **89,935** | **95,831** | [Income Tax Expense](index=29&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) This section details the Group's income tax expense for the period, including taxes in Hong Kong, China, Germany, and other jurisdictions, as well as the impact of deferred tax credits and global minimum top-up tax 2025 H1 Income Tax Expense | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Tax | 119,559 | 314,091 | | Under-provision in Prior Years | 17,300 | 1,537 | | Deferred Tax Credit | (140,490) | (174,898) | | **Total** | **(3,631)** | **140,730** | - According to China's Enterprise Income Tax Law, Advanced Technology (China) Co., Ltd. (ATC), as a technologically advanced service enterprise, is subject to an enterprise income tax rate of **15%**, valid until October 2025[88](index=88&type=chunk) - ASMPT Singapore Pte. Ltd. (ATS) has been granted Pioneer Certificate and Development and Expansion Incentive, enjoying tax benefits of **exemption or preferential tax rates** on profits from certain semiconductor products[89](index=89&type=chunk) - The Group has recognized **HK$27,139,000** for the global anti-base erosion rules ("Pillar Two Rules") tax expected to be levied on Group entities, related to the six months ended June 30, 2025[91](index=91&type=chunk) [Dividends](index=31&type=section&id=%E8%82%A1%E6%81%AF) This section discloses dividend information recognized during the reporting period and declared after the period-end, including 2024 final dividend, special dividend, and 2025 interim dividend Dividends Recognized as Distribution During the Period | Dividend Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 2024 Final Dividend of HK$0.07 per share | 29,152 | 107,771 | | 2024 Special Dividend of HK$0.25 per share | 104,115 | 215,543 | - An **interim dividend of HK$0.26 per share** (2024: HK$0.35 per share), totaling **HK$108,279 thousand**, was declared after the interim reporting period end[93](index=93&type=chunk) [Earnings Per Share](index=31&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This section provides profit and share count data used to calculate basic and diluted earnings per share Profit for Calculating Basic and Diluted Earnings Per Share | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for Calculating Basic and Diluted Earnings Per Share (Profit Attributable to Owners of the Company for the Period) | 214,852 | 314,967 | Number of Shares (in thousands) | Indicator | 2025 (thousands) | 2024 (thousands) | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares for Basic Earnings Per Share | 416,374 | 414,400 | | Dilutive Effect of Potential Shares: — Employee Share Award Scheme | 286 | 477 | | Weighted Average Number of Ordinary Shares for Diluted Earnings Per Share | 416,660 | 414,877 | [Additions to Property, Plant and Equipment / Right-of-Use Assets](index=32&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E2%88%95%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2%E4%B9%8B%E5%A2%9E%E9%A1%8D) This section discloses the capital expenditure amounts for the Group's purchases of property, plant and equipment and right-of-use assets during the reporting period - During the period, the Group paid **HK$131.8 million** for the purchase of property, plant and equipment (six months ended June 30, 2024: HK$127.4 million)[98](index=98&type=chunk) - Payments for right-of-use assets amounted to **HK$39.7 million** (six months ended June 30, 2024: HK$79.2 million)[98](index=98&type=chunk) [Trade and Other Receivables](index=32&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E8%B3%87%E6%AC%BE) This section provides the composition and aging analysis of the Group's trade and other receivables, along with an explanation of its credit policy Composition of Trade and Other Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables | 3,775,224 | 3,272,335 | | Recoverable VAT | 266,157 | 202,565 | | Other Receivables, Deposits and Prepayments | 372,773 | 273,992 | | **Total** | **4,414,154** | **3,748,892** | Aging Analysis of Trade Receivables (Net of Provisions) | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Not Yet Due | 2,415,347 | 2,423,558 | | Overdue within 30 Days | 457,311 | 360,819 | | Overdue 31 to 60 Days | 253,157 | 229,260 | | Overdue 61 to 90 Days | 120,738 | 63,816 | | Overdue over 90 Days | 528,671 | 194,882 | - All bills receivable held by the Group have a maturity period of **no more than one year**[99](index=99&type=chunk) - The Group holds **HK$292,450,000** in bills receivable discounted with banks with recourse[99](index=99&type=chunk) - The Group assesses the credit quality of potential customers before accepting any new customers and sets a maximum credit limit for each customer in advance[100](index=100&type=chunk) [Trade and Other Payables](index=33&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%A0%E5%82%B5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) This section provides the composition and aging analysis of the Group's trade and other payables, along with an explanation of the average credit period for goods purchased Composition of Trade and Other Payables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 1,322,828 | 1,290,179 | | Deferred Revenue | 77,928 | 92,303 | | Accrued Salaries and Wages | 231,110 | 191,374 | | Other Accrued Expenses | 525,970 | 494,119 | | Payables for Purchase of Property, Plant and Equipment | 94,792 | 76,946 | | Contingent Consideration for Acquisitions | 8,411 | 10,085 | | Other Payables | 189,766 | 168,705 | | **Total** | **2,450,805** | **2,323,711** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Not Yet Due | 1,130,089 | 989,694 | | Overdue within 30 Days | 118,054 | 180,085 | | Overdue 31 to 60 Days | 47,168 | 67,209 | | Overdue 61 to 90 Days | 11,849 | 20,689 | | Overdue over 90 Days | 15,668 | 32,502 | - The average credit period for goods purchased ranges from **thirty to ninety days**[104](index=104&type=chunk) [Provisions](index=34&type=section&id=%E6%92%A5%E5%82%99%E9%A0%85%E7%9B%AE) This section analyzes the Group's provisions, primarily including warranty provisions and restructuring provisions, and discloses the final settlement of a patent infringement lawsuit - Total Group provisions amounted to **HK$244,651 thousand** (December 31, 2024: HK$298,721 thousand), comprising **HK$184,156 thousand** in current provisions and **HK$60,495 thousand** in non-current provisions[105](index=105&type=chunk) - Primarily includes **warranty provisions of HK$162,581 thousand** (December 31, 2024: HK$163,008 thousand), with warranty periods generally limited to two years[105](index=105&type=chunk) - Restructuring provisions amounted to **HK$20,796 thousand** (December 31, 2024: HK$53,585 thousand)[105](index=105&type=chunk) - A legal dispute with a third party regarding patent infringement was finally settled on April 1, 2025, with a payment of **JPY 524,175,722 (approximately HK$27,310,000)** to the third party as full and final settlement of awarded damages and interest[106](index=106&type=chunk) [Bank Borrowings](index=35&type=section&id=%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE) This section discloses the Group's bank borrowing interest rates, repayment status, new borrowings, and interest rate swap arrangements for hedging floating-rate loans - As of June 30, 2025, the annual interest rate for bank borrowings ranged from **1.60% to 3.65%** (December 31, 2024: 5.25%)[108](index=108&type=chunk) - During the six months ended June 30, 2025, the Group repaid **HK$125,000,000** in bank borrowings and obtained new bank borrowings of **HK$135,449,000**[108](index=108&type=chunk) - The Group has other fixed-rate bank borrowings of approximately **HK$292,450,000**, bearing interest at fixed rates of **2.70% to 3.65% per annum**, repayable within one year[108](index=108&type=chunk) - Floating-rate bank borrowings include **HK$750,000,000** which are fixed at annual interest rates of **4.22% and 4.82%** under interest rate swap contracts, maturing on February 21, 2029[109](index=109&type=chunk) [Share Capital](index=36&type=section&id=%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9C%AC) This section provides information on the number and amount of the Group's issued and fully paid share capital Issued and Fully Paid Share Capital | Number of Shares (in thousands) | Amount (HK$ thousand) | | :--- | :--- | | As of January 1, 2024 | 414,506 | 41,451 | | Shares Issued under Employee Share Award Scheme | 1,953 | 195 | | As of December 31, 2024 and June 30, 2025 | 416,459 | 41,646 | - The Company's authorized share capital is **HK$50 million**, divided into **500 million shares** of HK$0.10 par value each[110](index=110&type=chunk) [Employee Share Award Scheme](index=36&type=section&id=%E5%83%B1%E5%93%A1%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) This section details the Group's Employee Share Award Scheme, including its purpose, validity period, share grants, fair value determination, and share-based expenses recognized during the period - The Employee Share Award Scheme was approved by shareholders on May 7, 2019, aiming to **recognize employee contributions, retain talent, and attract suitable individuals**[111](index=111&type=chunk) - The scheme has been effective for **ten years** from March 24, 2020 ("Adoption Date")[111](index=111&type=chunk) - For the six months ended June 30, 2025, the Group recognized total **share-based expenses of HK$37,071,000** (for the six months ended June 30, 2024: HK$82,520,000)[114](index=114&type=chunk) - As of June 30, 2025, the total number of unvested shares granted to selected employees under the scheme was **1,801,400 shares** (December 31, 2024: 169,300 shares)[116](index=116&type=chunk) Changes in Awarded Shares Purchased by Trustee | Item | Number of Shares Purchased (in thousands) | Purchase Cost (HK$ thousand) | | :--- | :--- | :--- | | As of January 1, 2024 (Audited) | — | — | | Shares Purchased in the Market During the Year | 339 | 35,351 | | Awarded Shares Vested | (335) | (34,933) | | As of December 31, 2024 (Audited) | 4 | 418 | | Shares Purchased in the Market During the Period | 241 | 12,990 | | As of June 30, 2025 (Unaudited) | 245 | 13,408 | [Related Party Transactions](index=39&type=section&id=%E9%97%9C%E8%81%AF%E4%BA%A4%E6%98%93) This section discloses the Group's related party transactions during the reporting period with key management personnel and joint ventures and their associates - During the period, remuneration for directors and other key management personnel was **HK$35,290,000** (six months ended June 30, 2024: HK$33,267,000), including the estimated fair value of the Employee Share Award Scheme of **HK$7,436,000**[118](index=118&type=chunk) - Transactions with joint ventures and their associates included **sales of parts of HK$584,000**, **purchases of parts from joint ventures and their associates of HK$260,000**, and **lease services of HK$5,450,000**[119](index=119&type=chunk) [Fair Value Measurement of Financial Instruments](index=39&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E4%B9%8B%E5%85%AC%E5%B9%B3%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F) This section details the Group's fair value measurement methods for financial assets and liabilities, including valuation techniques and key inputs for derivative financial instruments and other investments - The fair value of the Group's financial assets and liabilities is measured on a **recurring basis**[120](index=120&type=chunk) - Foreign currency forward contracts and interest rate swap contracts use the **discounted cash flow valuation method** and are classified as **Level 2 fair value measurements**[121](index=121&type=chunk) - Other investments (classified as equity instruments at fair value through other comprehensive income and equity instruments at fair value through profit or loss) use the **market approach to compare recent transaction prices** and are classified as **Level 3 fair value measurements**[122](index=122&type=chunk) - Contingent consideration for acquisitions uses the **discounted cash flow method** and is classified as **Level 3 fair value measurements**[122](index=122&type=chunk) - For the six months ended June 30, 2025, a **net gain of HK$727,000** was recognized for equity instruments classified as fair value through other comprehensive income held at the end of the reporting period[123](index=123&type=chunk) [Commitments](index=42&type=section&id=%E6%89%BF%E6%93%94) This section discloses the Group's capital expenditures contracted but not provided for and committed funds for other investments at the end of the reporting period Commitments | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Capital Expenditures Contracted but Not Provided for in the Condensed Consolidated Financial Statements for the Purchase of Property, Plant and Equipment | 71,761 | 90,150 | | Committed Funds for Investments in Other Investments | 78,201 | 68,583 | [Corporate Governance and Other Information](index=43&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This chapter provides ASMPT Limited's corporate governance practices, including code compliance, disclosure of directors' and major shareholders' interests in shares, audit committee composition and responsibilities, and purchase, sale, or redemption of company securities [Corporate Governance](index=43&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section describes the company's corporate governance practices, including compliance with the Listing Rules' Corporate Governance Code and the Model Code for Securities Transactions by Directors, and written guidelines for employees who may possess inside information - For the six months ended June 30, 2025, the Company has complied with all code provisions set out in **Appendix C1 of the Listing Rules' Corporate Governance Code** ("the Code")[126](index=126&type=chunk) - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** ("Model Code") as set out in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance after specific inquiries[127](index=127&type=chunk) - The Company has also established **written guidelines ("Employee Written Guidelines")**, no less stringent than the Model Code, for employees who may possess unpublished inside information about the Company[127](index=127&type=chunk) [Employee Share Award Scheme](index=43&type=section&id=%E5%83%B1%E5%93%A1%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) This section outlines the purpose, adoption date, validity period, and details of shares granted in 2025 under the Group's Employee Share Award Scheme, designed to incentivize and retain employees - The Company adopted the Employee Share Award Scheme ("the Scheme") for the benefit of Group employees and management members, aiming to **recognize contributions, retain talent, and attract suitable individuals**[128](index=128&type=chunk) - The Scheme was approved by shareholders on May 7, 2019, and adopted by the Company on March 24, 2020 ("Adoption Date"), valid for **ten years** from the Adoption Date, with approximately **four years remaining** as of the reporting date[128](index=128&type=chunk) - For the six months ended June 30, 2025, **1,641,300 shares** were granted under the Scheme, representing approximately **0.39% of the Company's weighted average issued shares** during the period[129](index=129&type=chunk) - Shares granted to each employee (including executive directors and senior management) are determined based on factors such as position, work experience, length of service, and contributions and performance to the Group in the previous year, with vesting conditions stipulating that awarded shares will lapse if the employee ceases to be an employee before the vesting date[129](index=129&type=chunk) [Disclosure of Interests in Shares](index=45&type=section&id=%E8%82%A1%E4%BB%BD%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) This section discloses the interests of the company's directors, chief executives, and major shareholders in the company's shares as of June 30, 2025 [Directors' Interests in Shares](index=45&type=section&id=%E8%91%A3%E4%BA%8B%E8%82%A1%E4%BB%BD%E6%AC%8A%E7%9B%8A) This section details the long positions of the company's directors and chief executives in the company's shares as of June 30, 2025, and explains the sources of these interests, including the Employee Share Award Scheme Directors' Interests in Shares (Long Position) | Director Name | Capacity | Number of Shares Held | Percentage | | :--- | :--- | :--- | :--- | | Wong Chi Tat | Beneficial Owner | 633,500 | 0.15% | | Guenter Walter Lauber | Beneficial Owner | 227,500 | 0.05% | - Wong Chi Tat's shares include interests in shares allocated under the Employee Share Award Scheme, with vesting contingent on the Group's financial performance for the three years ended December 31, 2024, 2025, and 2026[132](index=132&type=chunk) - Guenter Walter Lauber's shares also include interests in shares allocated under the Employee Share Award Scheme, with vesting conditions linked to the Group's financial performance[132](index=132&type=chunk) [Major Shareholders' Interests in Shares](index=46&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E8%82%A1%E4%BB%BD%E6%AC%8A%E7%9B%8A) This section details the long or short positions of major shareholders in the company's share capital as of June 30, 2025, as per the Securities and Futures Ordinance Major Shareholders' Interests in Shares (Long Position) | Shareholder Name | Capacity | Number of Shares Held (L) | Percentage (L) | | :--- | :--- | :--- | :--- | | ASM International N.V. | Interest of Controlled Corporation | 103,003,000 | 24.73% | | ASM Pacific Holding B.V. | Beneficial Owner | 103,003,000 | 24.73% | | FIL Limited | Interest of Controlled Corporation | 41,208,068 | 9.89% | | Pandanus Associates Inc. | Interest of Controlled Corporation | 41,208,068 | 9.89% | | Pandanus Partners L.P. | Interest of Controlled Corporation | 41,208,068 | 9.89% | | The Capital Group Companies, Inc. | Interest of Controlled Corporation | 37,622,015 | 9.03% | | Citigroup Inc. | Approved Lending Agent | 32,616,415 | 7.83% | | Fidelity Funds | Beneficial Owner | 29,634,300 | 7.11% | | JPMorgan Chase & Co. | Interest of Controlled Corporation | 27,242,701 | 6.54% | | Brown Brothers Harriman & Co. | Approved Lending Agent | 26,717,647 | 6.41% | - Citigroup Inc. holds both long and short positions, and shares available for lending, with a **short position of 6,658,929 shares (1.59%)** and **shares available for lending of 24,449,435 shares (5.87%)**[133](index=133&type=chunk) - JPMorgan Chase & Co. holds both long and short positions, and shares available for lending, with a **short position of 2,169,599 shares (0.52%)** and **shares available for lending of 22,198,595 shares (5.33%)**[135](index=135&type=chunk) [Audit Committee](index=47&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) This section introduces the composition of the company's Audit Committee, comprising three independent non-executive directors and one non-executive director, all with extensive experience in auditing, business, accounting, corporate internal control, and regulatory matters - The Company's Audit Committee comprises **three independent non-executive directors and one non-executive director**[137](index=137&type=chunk) - They possess extensive experience in **auditing, business, accounting, corporate internal control, and regulatory matters**[137](index=137&type=chunk) [Review of Financial Statements](index=48&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1) This section states that the Audit Committee, in conjunction with the company's external auditor, has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee, in conjunction with the Company's external auditor, has reviewed the Group's **unaudited condensed consolidated financial statements** for the six months ended June 30, 2025[140](index=140&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=48&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) This section discloses that, apart from the trustee of the Employee Share Award Scheme purchasing company shares, neither the company nor its subsidiaries purchased, sold, or redeemed any other listed securities during the reporting period - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, except for a total of **240,600 Company shares** purchased on the Stock Exchange for a total consideration of approximately **HK$13 million** by the independent professional trustee appointed by the Board under the Scheme in accordance with its rules and trust deed terms[141](index=141&type=chunk) [Closure of Register of Members](index=48&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) This section announces the dates for the suspension of share transfer registration to determine eligibility for the interim dividend and specifies the interim dividend payment date - To determine shareholders' eligibility for the interim dividend, the Company will suspend its register of members from **August 13, 2025, to August 15, 2025**, both dates inclusive[142](index=142&type=chunk) - The interim dividend will be paid around **August 29, 2025**[142](index=142&type=chunk) [Changes in Directors' Information](index=48&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E7%9A%84%E8%AE%8A%E5%8B%95) This section discloses changes in directors' information since the publication of the last annual report, specifically the appointment of Guenter Walter Lauber to the Board of IPC International, Inc., a non-profit global organization - Guenter Walter Lauber was appointed to the Board of Directors of IPC International, Inc., a non-profit global organization, effective **March 19, 2025**[143](index=143&type=chunk)

Financial Performance - The group's revenue for the six months ended June 30, 2025, was approximately $62.6 million, a decrease of about 19.3% compared to $77.6 million for the same period in 2024[2] - Gross profit for the same period was approximately $15.5 million, down about 11.5% from $17.5 million in 2024[2] - Net profit attributable to the company's owners was approximately $2.7 million, a decrease of about 43.1% from $4.8 million in 2024[2] - Earnings per share for the six months ended June 30, 2025, was $0.09, a decline of 40% compared to $0.15 in 2024[2] - Total comprehensive income for the period was $11.3 million, compared to $1.3 million in 2024[5] - Total revenue for the six months ended June 30, 2025, was $62,630 thousand, down from $77,601 thousand in the prior year, representing a decrease of approximately 19.2%[13] - The company recorded a profit of $2,724 thousand for the six months ended June 30, 2025, compared to a profit of $4,786 thousand in the same period of 2024, reflecting a decline of about 43%[8] - Operating profit decreased by 15.8% to $4.8 million in the first half of 2025 from $5.7 million in the same period of 2024[39] - The company reported a pre-tax consolidated profit of $4.424 million for the six months ended June 30, 2025, compared to $6.088 million in the same period of 2024, a decline of about 27.4%[18] Dividends and Shareholder Returns - The board of directors decided not to declare an interim dividend for the six months ended June 30, 2025[2] - The company paid dividends amounting to $4,052 thousand during the reporting period[9] - The company did not declare an interim dividend for the six months ended June 30, 2025, compared to no dividend declared for the same period in 2024[25] - The board has decided not to declare an interim dividend for the six months ending June 30, 2025[75] Assets and Liabilities - Current assets amounted to $253.5 million as of June 30, 2025, slightly down from $257.1 million as of December 31, 2024[6] - Total liabilities decreased from $127.5 million in December 2024 to $117.4 million in June 2025[7] - The company's total equity increased from $179.2 million in December 2024 to $182.3 million in June 2025[7] - The company’s total equity as of June 30, 2025, was $182,285 thousand, an increase from $177,091 thousand at the end of 2024[8] - Total trade receivables and notes receivable amounted to $127,425,000 as of June 30, 2025, compared to $140,059,000 as of December 31, 2024[29] - The company reported a total of $40,546,000 in trade payables and other payables as of June 30, 2025, down from $50,755,000 as of December 31, 2024[31] - Current liabilities decreased to approximately $117.4 million as of June 30, 2025, from $127.5 million on December 31, 2024[54] - The company's goodwill increased to $379,000 as of June 30, 2025, from $362,000 as of December 31, 2024, reflecting a growth of about 4.7%[18] Revenue Breakdown - Revenue from land drilling equipment, offshore equipment, and marine equipment sales was $28,228 thousand for the six months ended June 30, 2025, down from $37,859 thousand in the same period of 2024, a decrease of approximately 25.5%[13] - Equipment manufacturing and general contracting reported external customer revenue of $28.548 million for the six months ended June 30, 2025, down from $38.247 million in the same period of 2024, representing a decrease of approximately 25%[17] - Supply chain and integrated services generated external customer revenue of $10.341 million for the six months ended June 30, 2025, compared to $14.526 million in 2024, reflecting a decline of about 29%[17] - Asset management and engineering services reported external customer revenue of $23.741 million for the six months ended June 30, 2025, slightly down from $24.828 million in 2024, a decrease of approximately 4.4%[17] - Total reported segment revenue for the six months ended June 30, 2025, was $75.171 million, a decrease of 21.6% from $95.870 million in the same period of 2024[18] Cash Flow and Investments - For the six months ended June 30, 2025, the company reported a net cash generated from operating activities of $33,496 thousand, a significant increase from $2,245 thousand in the same period of 2024[9] - The company’s investment activities resulted in a net cash outflow of $842 thousand for the six months ended June 30, 2025, compared to a net cash inflow of $14,779 thousand in the same period of 2024[9] - Cash and cash equivalents increased to $90.564 million as of June 30, 2025, compared to $84.100 million as of December 31, 2024, an increase of approximately 7.3%[18] Market and Industry Trends - The global trade policy uncertainty index reached a historical high, with the WTO predicting a mere 1.6% growth in global merchandise trade for 2025[62] - In the first half of 2025, global oil prices fluctuated significantly, with WTI, Brent, and Oman crude oil futures averaging $67.33, $69.80, and $69.12 per barrel in June, respectively, reflecting increases of $6.39, $5.79, and $5.24 per barrel month-over-month[63] - OPEC+ plans to increase production by 548,000 barrels per day in August, exceeding market expectations of 411,000 barrels per day, indicating a strategic shift from production cuts to market share competition[63] - The global hydrogen industry is entering a rapid development phase, with the EU's "IPCEL Hy2Infra" plan involving 32 companies and 33 hydrogen projects, supported by €6.9 billion in public funding and over €5.4 billion in private investment[65] Corporate Governance and Compliance - The audit committee has reviewed the unaudited financial results for the six months ending June 30, 2025, and found them to comply with applicable accounting standards[115] - The company has adopted a code of conduct for securities trading, and all directors have complied with the standards during the six-month period ending June 30, 2025[117] - The company has adhered to the corporate governance code, with one exception regarding attendance at the annual general meeting[118] - There were no significant interests held by directors in any transactions or contracts related to the company's business during the reporting period[116] Share Incentive Plans - The company has adopted a new share incentive plan, extending the previous plan's duration to ten years, ending on January 13, 2035[76] - The share incentive plan allows for a total of 162,171,695 shares to be allocated, representing approximately 5% of the total issued shares as of the announcement date[79] - The company has not issued any rewards under the share incentive plan since its adoption, resulting in no shares being allocated as of June 30, 2025[105] - The company’s directors and chief executive have minimal personal interests in the company’s shares, with the highest being 65,979,100 shares, or 2.03%[107]

[Executive Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) [Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E4%BA%AE%E7%82%B9) The Group reported slightly decreased revenue but increased profit before tax for H1 2025, with stable net profit attributable to equity holders and no interim dividend declared Key Financial Data Comparison for H1 2025 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,081.30 | 1,103.39 | -2.00 | | Profit Before Tax | 73.38 | 70.81 | 3.63 | | Net Profit Attributable to Equity Holders of the Company | 52.36 | 52.65 | -0.55 | | Basic Earnings Per Share (RMB) | 0.09 | 0.12 | -25.00 | - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[4](index=4&type=chunk) [Financial Statements](index=2&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue slightly decreased, while gross profit, profit before tax, and profit for the period saw modest increases, but net profit attributable to equity holders remained stable, and basic earnings per share declined Key Data from Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,081,301 | 1,103,390 | | Cost of Sales | (868,572) | (894,278) | | Gross Profit | 212,729 | 209,112 | | Profit Before Tax | 73,383 | 70,811 | | Profit for the Period | 61,038 | 60,184 | | Net Profit Attributable to Equity Holders of the Company | 52,364 | 52,652 | | Basic Earnings Per Share (RMB) | 0.09 | 0.12 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's total comprehensive income for the period increased, primarily due to exchange differences from translating financial statements of overseas subsidiaries Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 61,038 | 60,184 | | Exchange Differences on Translation of Financial Statements of Overseas Subsidiaries | 54 | — | | Total Comprehensive Income for the Period | 61,092 | 60,184 | | Attributable to Equity Holders of the Company | 52,418 | 52,652 | [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets and net assets significantly increased, driven by a substantial rise in cash and cash equivalents, while non-current assets and liabilities remained stable Key Data from Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,290,711 | 1,272,460 | | Current Assets | 1,495,020 | 1,186,799 | | Current Liabilities | 1,087,058 | 1,103,936 | | Non-current Liabilities | 261,597 | 258,935 | | Net Assets | 1,437,076 | 1,096,388 | | Equity Attributable to Equity Holders of the Company | 1,318,244 | 990,630 | | Total Equity | 1,437,076 | 1,096,388 | - Cash and cash equivalents significantly increased from **RMB 131,387 thousand** as of December 31, 2024, to **RMB 490,130 thousand** as of June 30, 2025[8](index=8&type=chunk)[9](index=9&type=chunk) [Notes to Financial Statements](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E9%99%84%E6%B3%A8) [General Information](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) Anhui Conch Material Technology Co., Ltd., established in 2018 and listed on the HKEX main board on January 9, 2025, primarily engages in R&D, production, and sales of cement and concrete admixtures - The Company's H-shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **January 9, 2025**[10](index=10&type=chunk) - The Group primarily engages in the research and development, production, and sale of cement admixtures, concrete admixtures, and their respective process intermediates[10](index=10&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80%E4%B8%8E%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) The interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, reviewed by the audit committee, with no significant impact from recent IAS 21 amendments - The interim financial report is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 'Interim Financial Reporting' issued by the International Accounting Standards Board[11](index=11&type=chunk) - The interim financial report is unaudited but has been reviewed by the Company's Audit Committee[12](index=12&type=chunk) - The Group applied amendments to IAS 21, but these amendments did not have a significant impact on the Group's performance or financial position in the interim financial report[13](index=13&type=chunk) [Basis of Preparation](index=6&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The interim financial report, approved by the Board and reviewed by the audit committee, is prepared under HKEX Listing Rules and IAS 34, involving management judgments and estimates - The interim financial report is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 'Interim Financial Reporting' issued by the International Accounting Standards Board[11](index=11&type=chunk) - The interim financial report is unaudited but has been reviewed by the Company's Audit Committee[12](index=12&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%98%E5%8C%96) The Group applied amendments to IAS 21, 'The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability,' during the period, which had no significant impact on financial performance or position - The Group applied the new and revised International Accounting Standards issued by the International Accounting Standards Board for this accounting period's interim financial report, specifically amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability'[13](index=13&type=chunk) - These standard amendments did not have a significant impact on how the Group's performance and financial position for current or prior periods are prepared or presented in the interim financial report[13](index=13&type=chunk) [Revenue and Segment Reporting](index=7&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) The Group's revenue primarily stems from cement and concrete admixtures, with cement admixture revenue decreasing and concrete admixture revenue increasing, mainly from mainland China, while overseas revenue grew significantly Revenue from Contracts with Customers by Major Product Category (For the six months ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cement Admixtures and Process Intermediates | 550,864 | 618,373 | | Concrete Admixtures and Process Intermediates | 527,719 | 482,760 | | Others | 2,718 | 2,257 | | **Total** | **1,081,301** | **1,103,390** | - For the six months ended June 30, 2025, revenue from only one customer accounted for **10% or more** of the Group's revenue, approximately **RMB 289,199,700**[15](index=15&type=chunk) Revenue from External Customers (By Geographical Location) | Geographical Location | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,067,547 | 1,103,075 | | Asia (excluding Mainland China) | 13,754 | 315 | | **Total** | **1,081,301** | **1,103,390** | [Revenue Classification](index=7&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E7%B1%BB) The Group's core business involves R&D, production, and sales of cement and concrete admixtures, with H1 2025 revenue of RMB 550,864 thousand from cement admixtures and RMB 527,719 thousand from concrete admixtures, and one customer contributing over 10% of total revenue - The Group's principal activities are the research and development, production, and sale of cement admixtures, concrete admixtures, and their respective process intermediates[14](index=14&type=chunk) Revenue from Contracts with Customers by Major Product Category (For the six months ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cement Admixtures and Process Intermediates | 550,864 | 618,373 | | Concrete Admixtures and Process Intermediates | 527,719 | 482,760 | | Others | 2,718 | 2,257 | [Segment Reporting](index=8&type=section&id=%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) Management identifies only one operating segment, the admixture products business, with most revenue and non-current assets in mainland China, but significant growth in Asia (excluding mainland China) - Management considers there to be only one operating segment in accordance with the requirements of IFRS 8 Operating Segments[16](index=16&type=chunk) Revenue from External Customers (By Geographical Location) | Geographical Location | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,067,547 | 1,103,075 | | Asia (excluding Mainland China) | 13,754 | 315 | Specified Non-current Assets (By Geographical Location) | Geographical Location | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,243,585 | 1,231,330 | | Asia (excluding Mainland China) | 14,476 | 13,061 | [Components of Profit Before Tax](index=10&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9%E6%9E%84%E6%88%90) Profit before tax was influenced by reduced finance costs due to lower loan interest rates, slightly increased staff costs, decreased R&D costs due to project cycles, and a significant increase in impairment losses on trade receivables Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on loans and other borrowings | 11,064 | 13,386 | | Interest on lease liabilities | 228 | 268 | | **Total** | **11,292** | **13,654** | Staff Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 98,039 | 97,307 | | Contributions to defined contribution plans | 9,492 | 9,730 | | **Total** | **107,531** | **107,037** | Other Items (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 795,531 | 807,867 | | Depreciation of property, plant and equipment | 30,118 | 31,659 | | Depreciation of right-of-use assets | 4,323 | 3,593 | | Amortisation of intangible assets | 1,011 | 1,264 | | Provision for impairment losses on trade receivables | 13,999 | 2,029 | [Finance Costs](index=10&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) For the period, the Group's finance costs decreased to RMB 11,292 thousand from RMB 13,654 thousand in the prior period, primarily comprising interest on loans and other borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on loans and other borrowings | 11,064 | 13,386 | | Interest on lease liabilities | 228 | 268 | | **Total** | **11,292** | **13,654** | [Staff Costs](index=10&type=section&id=%E5%91%98%E5%B7%A5%E6%88%90%E6%9C%AC) For the period, the Group's total staff costs slightly increased to RMB 107,531 thousand, mainly consisting of salaries, wages, other benefits, and contributions to defined contribution plans Staff Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 98,039 | 97,307 | | Contributions to defined contribution plans | 9,492 | 9,730 | | **Total** | **107,531** | **107,037** | - Employees of the Group's PRC subsidiaries are required to participate in defined contribution retirement schemes managed and operated by local municipal governments[21](index=21&type=chunk) [Other Items](index=11&type=section&id=%E5%85%B6%E4%BB%96%E9%A1%B9%E7%9B%AE) Other items include cost of inventories, depreciation, amortisation, and a significant increase in impairment losses on trade receivables to RMB 13,999 thousand from RMB 2,029 thousand in the prior period Other Items (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 795,531 | 807,867 | | Depreciation of property, plant and equipment | 30,118 | 31,659 | | Depreciation of right-of-use assets | 4,323 | 3,593 | | Amortisation of intangible assets | 1,011 | 1,264 | | Provision for impairment losses on trade receivables | 13,999 | 2,029 | [Income Tax](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E) Income tax provision is primarily based on a 25% statutory rate for PRC subsidiaries, with some high-tech enterprises enjoying a 15% preferential rate, while certain western region subsidiaries are now taxed at 25% from 2024, and R&D expenses qualify for an additional 100% deduction Income Tax in Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax: Provision for the period | 21,011 | 18,138 | | Current tax: Over-provision in prior years | (3,825) | (1,762) | | Deferred tax: Origination and reversal of temporary differences | (4,841) | (3,615) | | Deferred tax: Impact of tax rate change on deferred tax balance at January 1 | — | (2,134) | | **Total** | **12,345** | **10,627** | - PRC income tax provision is calculated at the statutory rate of **25%** on the assessable profits of the Company's PRC subsidiaries, except for Linyi Conch New Material Technology Co., Ltd., which is recognized as a 'High-tech Enterprise' and enjoys a preferential income tax rate of **15%**[25](index=25&type=chunk) - Certain subsidiaries operating in eligible industries in western regions are subject to PRC income tax at a rate of **25%** from January 1, 2024, due to changes in the new catalogue of encouraged industries issued by the National Development and Reform Commission[25](index=25&type=chunk) [Earnings Per Share](index=13&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share decreased to RMB 0.09 from RMB 0.12, primarily due to an increase in the weighted average number of ordinary shares following the H-share listing, with diluted earnings per share remaining the same as basic earnings per share Basic Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company for the period (RMB thousand) | 52,364 | 52,652 | | Weighted average number of ordinary shares (thousand shares) | 579,894 | 434,920 | | Basic Earnings Per Share (RMB) | 0.09 | 0.12 | - The Company successfully listed on the Main Board of the Stock Exchange on **January 9, 2025**, issuing **144,974,000 H-shares**, which led to an increase in the weighted average number of ordinary shares[27](index=27&type=chunk) - As of June 30, 2024 and 2025, the Company had no outstanding potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[29](index=29&type=chunk) [Basic Earnings Per Share](index=13&type=section&id=%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E7%9B%88%E5%88%A9) Basic earnings per share decreased from RMB 0.12 to RMB 0.09, calculated based on profit attributable to ordinary equity holders and a significantly increased weighted average number of ordinary shares due to the H-share listing - Basic earnings per share are calculated based on the profit attributable to ordinary equity holders of the Company for the year of **RMB 52,364,000** (2024: **RMB 52,652,000**) and the weighted average number of ordinary shares outstanding[26](index=26&type=chunk) Weighted Average Number of Ordinary Shares (thousand shares) | Date | 2025 (thousand shares) | 2024 (thousand shares) | | :--- | :--- | :--- | | Ordinary shares outstanding at January 1 | 434,920 | 434,920 | | Effect of ordinary shares issued | 144,974 | — | | Weighted average number of ordinary shares at June 30 | 579,894 | 434,920 | [Diluted Earnings Per Share](index=13&type=section&id=%E6%AF%8F%E8%82%A1%E6%91%8A%E8%96%84%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, diluted earnings per share remained consistent with basic earnings per share, as the Company had no outstanding potential dilutive ordinary shares - As of June 30, 2024 and 2025, the Company had no outstanding potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[29](index=29&type=chunk) [Asset Details](index=14&type=section&id=%E8%B5%84%E4%BA%A7%E6%98%8E%E7%BB%86) During the period, the Group's property, plant and equipment increased, while right-of-use assets and intangible assets remained stable; trade receivables decreased overall but impairment provisions significantly rose, and cash and cash equivalents substantially increased due to IPO proceeds - For the six months ended June 30, 2025, the Group added **RMB 24,522,082** in property, plant and equipment[30](index=30&type=chunk) Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (third parties + related parties) | 591,625 | 587,878 | | Less: Provision for doubtful debts | (58,982) | (44,983) | | Bills receivable at amortised cost | 218,657 | 259,169 | | Bills receivable at fair value through other comprehensive income | 20,766 | 64,653 | | Other receivables from third parties | 44,413 | 47,162 | | Other receivables from related parties | 320 | 14 | | **Current portion of trade and other receivables** | **816,799** | **913,893** | Inventories (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 49,773 | 56,633 | | Finished goods | 138,318 | 44,886 | | **Total** | **188,091** | **101,519** | [Property, Plant and Equipment, Right-of-Use Assets and Intangible Assets](index=14&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87%E3%80%81%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2%E5%8F%8A%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) During the period, the Group added RMB 24,522,082 in property, plant and equipment with no disposals, while right-of-use assets and intangible assets (including software, pollutant emission permits, and non-patented technologies) remained unchanged - For the six months ended June 30, 2025, the Group added **RMB 24,522,082** in property, plant and equipment items, with no asset disposals[30](index=30&type=chunk) - For the six months ended June 30, 2025, there was no increase or decrease in right-of-use assets[31](index=31&type=chunk) - Intangible assets include software, pollutant emission permits, and non-patented technologies; for the six months ended June 30, 2025, there was no increase or decrease in intangible assets[32](index=32&type=chunk) [Trade and Other Receivables](index=15&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other receivables decreased to RMB 849,932 thousand from RMB 922,427 thousand at year-end, with a significant increase in provision for doubtful debts from RMB 44,983 thousand to RMB 58,982 thousand, and current trade receivables remaining the largest portion Total Trade and Other Receivables (Current and Non-current) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current portion of trade and other receivables | 816,799 | 913,893 | | Non-current portion of trade and other receivables | 33,133 | 8,534 | | **Total** | **849,932** | **922,427** | Ageing Analysis of Trade Receivables (Net of Loss Allowance) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 378,718 | 399,530 | | Overdue 1 to 6 months | 106,105 | 90,950 | | Overdue 7 to 9 months | 28,713 | 50,725 | | Overdue 10 to 12 months | 19,107 | 1,690 | | **Total** | **532,643** | **542,895** | [Inventories](index=16&type=section&id=%E5%AD%98%E8%B4%A7) As of June 30, 2025, total inventories significantly increased to RMB 188,091 thousand from RMB 101,519 thousand at year-end, primarily driven by a rise in finished goods inventories from RMB 44,886 thousand to RMB 138,318 thousand Inventories Composition (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 49,773 | 56,633 | | Finished goods | 138,318 | 44,886 | | **Total** | **188,091** | **101,519** | [Cash and Cash Equivalents](index=16&type=section&id=%E7%8E%B0%E9%87%91%E5%8F%8A%E7%8E%B0%E9%87%91%E7%AD%89%E4%BB%B7%E7%89%A9) As of June 30, 2025, the Group's cash and cash equivalents significantly increased to RMB 490,130 thousand from RMB 131,387 thousand at year-end, mainly reflecting growth in bank balances and cash on hand Cash and Cash Equivalents (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank balances and cash on hand | 490,130 | 131,387 | | **Total** | **490,130** | **131,387** | [Liability Details](index=17&type=section&id=%E8%B4%9F%E5%80%BA%E6%98%8E%E7%BB%86) At the end of the reporting period, the Group's total loans and borrowings slightly increased, primarily due within one year, while total trade and other payables decreased, with most due within one year Loans and Borrowings (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 731,133 | 720,212 | | Non-current | 202,777 | 198,491 | | **Total** | **933,910** | **918,703** | Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables (third parties + related parties) | 219,071 | 211,554 | | Other payables and accrued expenses | 300,770 | 341,121 | | Other payables to related parties | 247 | 3,159 | | **Total** | **301,017** | **344,280** | [Loans and Borrowings](index=17&type=section&id=%E8%B4%B7%E6%AC%BE%E5%8F%8A%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total loans and borrowings amounted to RMB 933,910 thousand, with RMB 731,133 thousand due within one year, and all bank loans being unsecured Loans and Borrowings Repayment Schedule (As of June 30) | Repayment Period | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 731,133 | 720,212 | | After one year but within two years | 69,286 | 75,000 | | After two years but within five years | 133,491 | 123,491 | | **Total** | **933,910** | **918,703** | - At the end of the reporting period, all bank loans were **unsecured**[35](index=35&type=chunk) [Trade and Other Payables](index=18&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other payables decreased to RMB 301,017 thousand from RMB 344,280 thousand at year-end, with trade payables at RMB 219,071 thousand, all due within one year, unsecured, interest-free, and repayable on demand Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 219,071 | 211,554 | | Other payables and accrued expenses | 300,770 | 341,121 | | Other payables to related parties | 247 | 3,159 | | **Total** | **301,017** | **344,280** | - At the end of the reporting period, all payables were due within one year, **unsecured**, **interest-free**, and repayable on demand[36](index=36&type=chunk) [Share Capital, Reserves and Dividends](index=19&type=section&id=%E8%82%A1%E6%9C%AC%E3%80%81%E5%82%A8%E5%A4%87%E5%8F%8A%E8%82%A1%E6%81%AF) The Company approved and paid a final dividend of RMB 0.17 per share for the previous fiscal year, totaling RMB 98,582 thousand, in June 2025, but the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - Pursuant to the resolution passed at the annual general meeting on May 20, 2025, a final dividend of **RMB 0.17 per ordinary share** for the previous fiscal year, totaling **RMB 98,582 thousand** (approximately **HKD 106,455 thousand**), was approved[38](index=38&type=chunk) - The relevant dividend was fully paid in **June 2025**[38](index=38&type=chunk) - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[38](index=38&type=chunk) [Business Review and Management Discussion](index=20&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5%E4%B8%8E%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA) [Overall Review](index=20&type=section&id=%E6%95%B4%E4%BD%93%E6%A6%82%E8%A7%88) In H1 2025, China's economy grew steadily with 5.3% GDP increase, supported by fiscal and monetary policies boosting infrastructure and high-performance concrete demand, despite real estate downturns, while environmental policies drive industry upgrades - In the first half of 2025, China's economy maintained overall stable operation, with Gross Domestic Product (GDP) increasing by **5.3% year-on-year**[39](index=39&type=chunk) - National fixed asset investment increased by **2.8% year-on-year**, driving demand for high-performance concrete and cement, directly promoting the use of special concrete admixtures and high-end cement admixtures[39](index=39&type=chunk) - Affected by the continuous downturn in the domestic real estate industry, both new housing starts and construction area experienced varying degrees of decline, posing certain constraints on the admixture market demand[39](index=39&type=chunk) [Performance Review](index=20&type=section&id=%E4%B8%9A%E7%BB%A9%E5%9B%9E%E9%A1%B5) During the reporting period, the Group achieved RMB 1,081.30 million in revenue by focusing on R&D, expanding market share, optimizing domestic layout, accelerating overseas market development, and exploring fine chemical fields, adhering to a 'stabilize existing business, expand new business' strategy - The Group adheres to the strategic principle of 'stabilizing existing business and expanding new business,' leveraging its integrated industrial chain advantages to continuously deepen market development for cement, concrete, and related intermediate products, optimizing its domestic layout in key markets such as Xinjiang, Beijing-Tianjin-Hebei, and accelerating overseas layout and market construction[40](index=40&type=chunk) - During the reporting period, the Group achieved operating revenue of **RMB 1,081.30 million**[40](index=40&type=chunk) [Cement Admixtures and Process Intermediates Business](index=21&type=section&id=%E6%B0%B4%E6%B3%A5%E5%A4%96%E5%8A%A0%E5%89%82%E5%8F%8A%E8%BF%87%E7%A8%8B%E4%B8%AD%E9%97%B4%E4%BD%93%E4%B8%9A%E5%8A%A1) As a major supplier in the domestic cement admixture market, the Group focuses on increasing penetration and repurchase rates with over 300 cement producers, while actively managing procurement and sales strategies for process intermediates based on raw material prices - As a major supplier in the domestic cement admixture and process intermediate market, the Group provides excellent products and corresponding technical support to numerous cement production enterprises in the cement admixture business segment[41](index=41&type=chunk) - The Group has established direct supply relationships with over **300 renowned cement production enterprises**, including Anhui Conch Cement Company Limited, Taiwan Cement Corporation, and Gansu Shangfeng Cement Co., Ltd[41](index=41&type=chunk) - In the cement admixture process intermediate business segment, the Group closely monitors price trends of upstream raw materials, propylene oxide and ethanolamine, to reasonably adjust procurement and sales strategies[41](index=41&type=chunk) [Concrete Admixtures and Process Intermediates Business](index=21&type=section&id=%E6%B7%B7%E5%87%9D%E5%9C%9F%E5%A4%96%E5%8A%A0%E5%8A%A0%E5%89%82%E5%8F%8A%E8%BF%87%E7%A8%8B%E4%B8%AD%E9%97%B4%E4%BD%93%E4%B8%9A%E5%8A%A0%E5%89%82) Leveraging its full industrial chain advantage from polyether monomer to concrete admixture, the Group successfully expanded external market share, with polycarboxylate superplasticizer mother liquor revenue growing by 123% and finished concrete admixture revenue by 27%, offering one-stop solutions - The Group successfully expanded its external market share by leveraging its full industrial chain advantage from polyether monomer to polycarboxylate superplasticizer mother liquor and finished concrete admixtures[42](index=42&type=chunk) - Polycarboxylate superplasticizer mother liquor primarily serves large-scale engineering projects and concrete admixture production enterprises, with product revenue increasing by **123% year-on-year**[42](index=42&type=chunk) - Finished concrete admixtures are directly supplied to concrete production enterprises, with product revenue increasing by **27% year-on-year**[42](index=42&type=chunk) [Overseas Expansion](index=22&type=section&id=%E6%B5%B7%E5%A4%96%E5%B8%83%E5%B1%80) The Group actively pursues a 'going global' strategy, expanding export trade to 29 countries and regions to absorb domestic capacity, and establishing overseas companies in Uzbekistan and Indonesia to enhance its Asia-Pacific strategic layout - The Group adheres to the 'going global' development strategy, on one hand continuously expanding overseas export trade business to absorb domestic production capacity, successfully achieving product exports to **29 countries and regions**[43](index=43&type=chunk) - Following the commencement of operations of its first overseas company, Tashkent Conch New Material Technology Foreign Enterprise Limited Liability Company, PT. Conch Material Technology Indonesia was successfully registered, further enhancing the Group's strategic layout in the Asia-Pacific region[43](index=43&type=chunk) [Financial Performance Analysis](index=22&type=section&id=%E8%B4%A2%E5%8A%A1%E7%9B%88%E5%88%A9%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the period, the Group's revenue decreased by 2.00%, but profit before tax and profit for the period increased by 3.63% and 1.42% respectively, with stable net profit attributable to equity holders; gross margin improved, other net income significantly grew, administrative expenses increased, R&D expenses decreased, and finance costs reduced Financial Performance Comparison (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,081,301 | 1,103,390 | -2.00 | | Profit Before Tax | 73,383 | 70,811 | 3.63 | | Profit for the Period | 61,038 | 60,184 | 1.42 | | Net Profit Attributable to Equity Holders of the Company | 52,364 | 52,652 | -0.55 | - The gross profit margin for admixtures and process intermediates increased year-on-year to **19.56%**, primarily due to the provision of more high-margin differentiated products and enhanced cost control, including reduced raw material procurement prices[47](index=47&type=chunk) - Other net income amounted to **RMB 17.84 million**, an increase of **60.59%** year-on-year, mainly due to increased bank deposit interest income from the global offering proceeds and higher government subsidies for some subsidiaries[47](index=47&type=chunk) [Revenue Analysis by Business Segment](index=23&type=section&id=%E5%88%86%E4%B8%9A%E5%8A%A1%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Cement admixtures and process intermediates revenue decreased by 10.92% to RMB 550.86 million due to lower raw material prices, while concrete admixtures and process intermediates revenue increased by 9.31% to RMB 527.72 million, driven by active business expansion and significant sales volume growth Revenue Comparison by Business Segment (For the six months ended June 30) | Item | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | Change in Amount (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cement Admixtures and Process Intermediates | 550,864 | 50.95 | 618,373 | 56.05 | -10.92 | | Concrete Admixtures and Process Intermediates | 527,719 | 48.80 | 482,760 | 43.75 | 9.31 | | Others | 2,718 | 0.25 | 2,257 | 0.20 | 20.43 | | **Total** | **1,081,301** | **100.00** | **1,103,390** | **100.00** | **-2.00** | - Revenue from concrete admixtures and process intermediates increased by **9.31%**, primarily due to active expansion of concrete admixture-related businesses, with concrete admixture sales volume increasing by **35% year-on-year** and polycarboxylate superplasticizer mother liquor sales volume increasing by **127% year-on-year**[45](index=45&type=chunk) [Geographical Revenue and Asset Analysis](index=24&type=section&id=%E5%9C%B0%E5%8C%BA%E6%94%B6%E5%85%A5%E5%8F%8A%E8%B5%84%E4%BA%A7%E5%88%86%E6%9E%90) The Group's revenue is predominantly from mainland China, but external customer revenue from Asia (excluding mainland China) significantly increased from RMB 315 thousand in H1 2024 to RMB 13,754 thousand in H1 2025, with specified non-current assets also showing slight growth in Asia (excluding mainland China) Revenue from External Customers (By Geographical Location) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,067,547 | 1,103,075 | | Asia (excluding Mainland China) | 13,754 | 315 | | **Total** | **1,081,301** | **1,103,390** | Specified Non-current Assets (By Geographical Location) | Region | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,243,585 | 1,231,330 | | Asia (excluding Mainland China) | 14,476 | 13,061 | | **Total** | **1,258,061** | **1,244,391** | [Gross Profit and Gross Margin Analysis](index=24&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87%E5%88%86%E6%9E%90) During the period, the Group's gross profit increased by 1.73% to RMB 212.73 million, with the gross margin for admixtures and process intermediates rising due to high-margin differentiated products and improved cost control, including lower raw material procurement prices Gross Profit and Gross Margin Comparison (For the six months ended June 30) | Item | 2025 (RMB thousand) | Gross Margin (%) | 2024 (RMB thousand) | Gross Margin (%) | Change in Amount (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Admixtures and Process Intermediates | 210,992 | 19.56 | 208,229 | 18.91 | 1.33 | | Others | 1,737 | 63.91 | 883 | 39.12 | 96.72 | | **Total** | **212,729** | **19.67** | **209,112** | **18.95** | **1.73** | - The gross profit margin for admixtures and process intermediates increased, mainly due to the Group providing more high-margin differentiated products, coupled with strengthened cost control and optimized material procurement, leading to a decrease in some raw material procurement prices[47](index=47&type=chunk) [Other Net Income Analysis](index=25&type=section&id=%E5%85%B6%E4%BB%96%E5%87%80%E6%94%B6%E7%9B%8A%E5%88%86%E6%9E%90) During the period, the Group's other net income increased by 60.59% to RMB 17.84 million, primarily due to higher bank deposit interest income from the Hong Kong public and international offering proceeds and increased government subsidies for certain subsidiaries - The Group's other net income amounted to **RMB 17.84 million**, an increase of **RMB 6.73 million** or **60.59%** compared to the same period last year[47](index=47&type=chunk) - This was mainly due to increased bank deposit interest income from the Company's Hong Kong public offering and international offering ('Global Offering') proceeds, and increased government subsidies for some subsidiaries during the reporting period[47](index=47&type=chunk) [Distribution Costs Analysis](index=25&type=section&id=%E5%88%86%E9%94%80%E6%88%90%E6%9C%AC%E5%88%86%E6%9E%90) During the reporting period, the Group's distribution costs remained largely stable at RMB 27.74 million compared to the same period last year - The Group's distribution costs amounted to **RMB 27.74 million**, remaining largely stable compared to the same period last year[47](index=47&type=chunk) [Administrative Expenses Analysis](index=25&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF%E5%88%86%E6%9E%90) During the period, the Group's administrative expenses increased by 5.53% to RMB 81.29 million, mainly due to higher staff remuneration from personnel structure adjustments and increased routine consulting fees after the H-share listing - The Group's administrative expenses amounted to **RMB 81.29 million**, an increase of **RMB 4.26 million** or **5.53%** compared to the same period last year[47](index=47&type=chunk) - This was mainly due to increased staff remuneration included in administrative expenses resulting from personnel structure adjustments, and increased routine consulting fees after the Company's H-shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on January 9, 2025[47](index=47&type=chunk) [Research and Development Expenses Analysis](index=26&type=section&id=%E7%A0%94%E5%8F%91%E5%BC%80%E6%94%AF%E5%88%86%E6%9E%90) During the period, the Group's R&D costs decreased by 22.15% to RMB 22.86 million, primarily due to the cyclical nature of R&D projects, with key projects largely industrialized and new projects in early stages requiring less investment - The Group's research and development costs amounted to **RMB 22.86 million**, a year-on-year decrease of **22.15%**[48](index=48&type=chunk) - This was mainly due to the cyclical nature of R&D projects, as the Group's important scientific research projects such as solid water reducers, viscosity-reducing water reducers, and early-strength water reducers have largely achieved industrialization goals, and some new R&D projects are in the early research stage, requiring less investment[48](index=48&type=chunk) [Finance Costs Analysis](index=26&type=section&id=%E8%B4%A2%E5%8A%A1%E8%B4%B9%E7%94%A8%E5%88%86%E6%9E%90) During the period, the Group's finance costs decreased by 17.30% to RMB 11.29 million, primarily due to lower loan interest rates - The Group's finance costs amounted to **RMB 11.29 million**, a year-on-year decrease of **RMB 2.36 million** or **17.30%**[49](index=49&type=chunk) - This was mainly due to the impact of lower loan interest rates[49](index=49&type=chunk) [Asset and Liability Position Analysis](index=27&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the Group's total assets and equity attributable to equity holders significantly increased, while the asset-liability ratio decreased, driven by a substantial rise in current assets due to IPO proceeds, with non-current assets and liabilities remaining stable Asset and Liability Position Comparison (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change from Year-end (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 1,290,711 | 1,272,460 | 1.43 | | Current Assets | 1,495,020 | 1,186,799 | 25.97 | | Non-current Liabilities | 261,597 | 258,935 | 1.03 | | Current Liabilities | 1,087,058 | 1,103,936 | -1.53 | | Net Current Assets | 407,962 | 82,863 | 392.33 | | Equity Attributable to Equity Holders of the Company | 1,318,244 | 990,630 | 33.07 | | Total Assets | 2,785,731 | 2,459,259 | 13.28 | | Total Liabilities | 1,348,655 | 1,362,871 | -1.04 | - The Group's asset-liability ratio (calculated as total liabilities divided by total assets at the end of the reporting period) was **48.41%**, a decrease of **7.01 percentage points** from the end of the previous year[50](index=50&type=chunk) [Non-current and Current Assets Analysis](index=27&type=section&id=%E9%9D%9E%E6%B5%81%E5%8A%A8%E5%8F%8A%E6%B5%81%E5%8A%A8%E8%B5%84%E4%BA%A7%E5%88%86%E6%9E%90) At the end of the reporting period, the Group's non-current assets remained largely stable at RMB 1,290.71 million, while current assets increased by 25.97% to RMB 1,495.02 million, primarily due to proceeds from the Company's successful listing - The Group's non-current assets amounted to **RMB 1,290.71 million**, remaining largely stable compared to the end of the previous year[51](index=51&type=chunk) - The Group's current assets amounted to **RMB 1,495.02 million**, an increase of **25.97%** compared to the end of the previous year, mainly due to the Company's successful listing and receipt of proceeds[51](index=51&type=chunk) [Non-current and Current Liabilities Analysis](index=28&type=section&id=%E9%9D%9E%E6%B5%81%E5%8A%A8%E5%8F%8A%E6%B5%81%E5%8A%A8%E8%B4%9F%E5%80%BA%E5%88%86%E6%9E%90) At the end of the reporting period, the Group's non-current liabilities stood at RMB 261.60 million and current liabilities at RMB 1,087.06 million, both remaining largely stable compared to the end of the previous year - The Group's non-current liabilities amounted to **RMB 261.60 million**, remaining largely stable compared to the end of the previous year[52](index=52&type=chunk) - The Group's current liabilities amounted to **RMB 1,087.06 million**, remaining largely stable compared to the end of the previous year[52](index=52&type=chunk) [Equity Attributable to Equity Holders of the Company Analysis](index=28&type=section&id=%E5%85%AC%E5%8F%B8%E6%9D%83%E7%9B%8A%E8%82%A1%E4%B8%9C%E5%BA%94%E5%8D%A0%E6%9D%83%E7%9B%8A%E5%88%86%E6%9E%90) At the end of the reporting period, equity attributable to equity holders of the Company increased by 33.07% to RMB 1,318.24 million, primarily due to increased share capital and capital reserves from the Company's listing and sustained profitability - Equity attributable to equity holders of the Company amounted to **RMB 1,318.24 million**, an increase of **33.07%** compared to the end of the previous year[53](index=53&type=chunk) - This was mainly due to (1) the Company's successful listing, leading to an increase in share capital and capital reserves; and (2) the Company's sustained profitability, increasing equity holders' equity[53](index=53&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=%E6%B5%81%E5%8A%A8%E6%80%A7%E5%8F%8A%E8%B5%84%E9%87%91%E6%9D%A5%E6%BA%90) During the period, the Group effectively managed funds by optimizing financing structure and reducing loan interest rates, resulting in a significant increase in cash and cash equivalents to RMB 490.13 million, substantial growth in net cash from operating activities, reduced net cash used in investing activities, and a large increase in net cash from financing activities due to IPO proceeds - At the end of the reporting period, the Group's cash and cash equivalents amounted to **RMB 490.13 million**, primarily in HKD and RMB[54](index=54&type=chunk) Cash Flow Comparison (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 79,182 | 30,614 | | Net cash used in investing activities | (19,065) | (42,860) | | Net cash from / (used in) financing activities | 298,626 | (10,342) | | Net increase / (decrease) in cash and cash equivalents | 358,743 | (22,588) | | Cash and cash equivalents at end of period | 490,130 | 143,515 | - Net cash from financing activities amounted to **RMB 298.63 million**, a year-on-year increase of **RMB 308.97 million**, primarily due to proceeds from the listing[59](index=59&type=chunk) [Loans and Borrowings Status](index=29&type=section&id=%E8%B4%B7%E6%AC%BE%E5%8F%8A%E5%80%9F%E6%AC%BE%E6%83%85%E5%86%B5) At the end of the reporting period, the Group's loans and borrowings balance increased by RMB 15.21 million to RMB 933.91 million, mainly due to new long-term borrowings by Huludao Haizhong New Material Technology Co., Ltd. for production and construction, with all loans denominated in RMB and bearing fixed interest rates Bank Loans Payable (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 731,133 | 720,212 | | After one year but within two years | 69,286 | 75,000 | | After two years but within five years | 133,491 | 123,491 | | **Total** | **933,910** | **918,703** | - The Group's loans and borrowings balance amounted to **RMB 933.91 million**, an increase of **RMB 15.21 million** compared to the end of the previous year, mainly due to new long-term borrowings by Huludao Haizhong New Material Technology Co., Ltd., a subsidiary of the Company, for production and construction needs[56](index=56&type=chunk) - At the end of the reporting period, the Group's loans and borrowings were all denominated in **RMB** and bore **fixed interest rates**[57](index=57&type=chunk) [Cash Flow Analysis](index=29&type=section&id=%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E5%88%86%E6%9E%90) During the period, net cash from operating activities significantly increased by RMB 48.57 million to RMB 79.18 million due to enhanced accounts receivable management, net cash used in investing activities decreased by RMB 23.80 million to RMB 19.07 million due to maturity of wealth management funds, and net cash from financing activities substantially rose by RMB 308.97 million to RMB 298.63 million, primarily from IPO proceeds - Net cash from operating activities amounted to **RMB 79.18 million**, an increase of **RMB 48.57 million** compared to the same period last year, mainly due to the Group strengthening accounts receivable management and accelerating the collection of overdue payments, leading to increased operating cash inflows compared to the same period last year[59](index=59&type=chunk) - Net cash used in investing activities amounted to **RMB 19.07 million**, a decrease of **RMB 23.80 million** compared to the same period last year, mainly due to the maturity of wealth management funds during the reporting period[59](index=59&type=chunk) - Net cash from financing activities amounted to **RMB 298.63 million**, a year-on-year increase of **RMB 308.97 million**, primarily due to proceeds from the listing[59](index=59&type=chunk) [Treasury Management Policy](index=30&type=section&id=%E5%BA%93%E5%8A%A1%E7%AE%A1%E7%90%86%E6%94%BF%E7%AD%96) The Company maintains a prudent financial management approach for its treasury policy, closely monitoring liquidity to ensure the capital structure of assets, liabilities, and other commitments aligns with funding requirements - The Company continues to adopt a **prudent financial management approach** for its treasury policy[60](index=60&type=chunk) - The Board will closely monitor the liquidity position to ensure that the liquidity structure of the Company's assets, liabilities, and other commitments meets funding requirements from time to time[60](index=60&type=chunk) [Foreign Exchange Risk and Exchange Rate Risk](index=30&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9%E5%8F%8A%E6%B1%87%E7%8E%87%E9%A3%8E%E9%99%A9) The Group's functional currency is RMB, with most assets and transactions denominated in RMB and domestic business expenses primarily paid in RMB, thus posing no significant foreign exchange risk, and no financial instruments were used to hedge foreign exchange risk during the period - The Group's functional currency is **RMB**, and most of the Group's assets and transactions are denominated in RMB, with domestic business expenditures primarily paid in RMB, thus there is **no significant foreign exchange risk**[61](index=61&type=chunk) - During the reporting period, the Group did not use financial instruments to hedge any foreign exchange risk[62](index=62&type=chunk) [Capital Commitments and Contingent Liabilities](index=31&type=section&id=%E8%B5%84%E6%9C%AC%E6%89%BF%E6%8B%85%E4%B8%8E%E6%88%96%E6%9C%89%E8%B4%9F%E5%80%BA) At the end of the reporting period, the Group had undisclosed capital commitments not provided for in the consolidated financial statements and no significant contingent liabilities - At the end of the reporting period, the Group's capital commitments not provided for in the consolidated financial statements were as follows: June 30, 2025 (RMB thousand) December 31, 2024 (RMB thousand)[64](index=64&type=chunk) - At the end of the reporting period, the Group had **no significant contingent liabilities**[65](index=65&type=chunk) [Pledge of Assets](index=31&type=section&id=%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) At the end of the reporting period, the Group had no pledge of assets - At the end of the reporting period, the Group had **no pledge of assets**[66](index=66&type=chunk) [Material Investments and Future Plans](index=31&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E5%8F%8A%E6%9C%AA%E6%9D%A5%E8%AE%A1%E5%88%92) During the reporting period, the Group made no material investments, and as of the announcement date, had no other material investment or capital asset future plans beyond those disclosed in the prospectus's 'Future Plans and Use of Proceeds' section - During the reporting period, the Group made **no material investments**[67](index=67&type=chunk) - Except for those disclosed in the section 'Future Plans and Use of Proceeds' of the Company's prospectus dated December 31, 2024 ('Prospectus'), as of the date of this announcement, the Group has **no other material investments and future plans for capital assets**[68](index=68&type=chunk) [Material Acquisitions and Disposals](index=31&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E5%B9%B6%E8%B4%AD) During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had **no material acquisitions or disposals** of subsidiaries, associates, and joint ventures[69](index=69&type=chunk) [Employees and Remuneration Policy](index=32&type=section&id=%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group prioritizes human resource management, implementing diversified incentive measures and an excess profit-sharing mechanism, with 871 employees at period-end and total remuneration of approximately RMB 107.53 million, determined by qualifications, experience, performance, and market conditions, including participation in social insurance plans - The Group highly values the construction and development of its human resource management system, consistently adhering to a talent-strengthening enterprise strategy, guided by value creation, actively exploring diversified incentive measures, and implementing an excess profit-sharing mechanism[70](index=70&type=chunk) - At the end of the reporting period, the Group had **871 employees** (December 31, 2024: 876 employees)[70](index=70&type=chunk) - During the reporting period, the total employee remuneration (including directors' remuneration) was approximately **RMB 107.53 million** (2024: RMB 107.04 million)[70](index=70&type=chunk) [H-share Listing and Use of Proceeds](index=33&type=section&id=%48%E8%82%A1%E4%B8%8A%E5%B8%82%E5%8F%8A%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%B9%E7%94%A8%E9%80%94) The Company's H-shares listed on the HKEX main board on January 9, 2025, raising HKD 395.9 million net from a global offering of 144,974,000 H-shares at HKD 3.0 per share, with HKD 40.0 million utilized by period-end for capacity optimization, loan repayment, and general working capital, and the remaining HKD 355.9 million to be used as per the prospectus - On **January 9, 2025**, the Company's H-shares were listed on the Main Board of the Stock Exchange, with a global offering of **144,974,000 H-shares**, including **43,493,000 H-shares** for the Hong Kong Public Offering and **101,481,000 H-shares** for the International Offering[71](index=71&type=chunk) Use of Net Proceeds from Global Offering and Utilisation Status | Use of Net Proceeds | Percentage of Net Proceeds | Net Proceeds from Global Offering (HKD million) | Utilised from Listing Date to End of Reporting Period (HKD million) | Remaining Amount as of End of Reporting Period (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Optimise production capacity and expand geographical coverage | 35.0% | 138.5 | 17.0 | 121.5 | | Implement marketing plans | 10.0% | 39.6 | 0.0 | 39.6 | | Further invest resources in R&D plans | 15.0% | 59.4 | 0.0 | 59.4 | | Repay part of bank loans | 15.0% | 59.4 | 20.0 | 39.4 | | Acquire companies or establish joint ventures | 15.0% | 59.4 | 0.0 | 59.4 | | General working capital | 10.0% | 39.6 | 3.0 | 36.6 | | **Total** | **100.0%** | **395.9** | **40.0** | **355.9** | - There has been **no change** to the proposed use of net proceeds as previously disclosed in the prospectus, and the Group will use the remaining net proceeds for the matters set out in the prospectus[74](index=74&type=chunk) [Outlook](index=35&type=section&id=%E5%89%8D%E6%99%AF%E5%B1%95%E6%9C%9B) As 2025 concludes the '14th Five-Year Plan,' China's economy will maintain stable growth, with supportive fiscal and monetary policies, urban renewal, and infrastructure investment driving demand; the Group will strategically enhance domestic market presence, accelerate overseas expansion into Southeast Asia, North Africa, and South America, and innovate technology to extend into high-value-added fields - As 2025 marks the final year of the '14th Five-Year Plan,' economic development will continue to adhere to the overall principle of 'seeking progress while maintaining stability,' laying a solid foundation for industry recovery and growth[75](index=75&type=chunk) - Policy-wise, directions for urban development and the real estate industry have been clarified, with a series of policy signals creating a cumulative effect, and demand in the real estate industry is expected to be significantly boosted in the second half of 2025[75](index=75&type=chunk) - The Group will deeply analyze domestic and international industry market development trends, precisely capture policy dividends, and based on the domestic market, focus on strengthening market development in key central cities and core regions with more solid demand foundations and stronger growth momentum, such as Beijing-Tianjin-Hebei, Xinjiang, Sichuan-Chongqing, Yangtze River Delta, Tibet, and South China[76](index=76&type=chunk)[77](index=77&type=chunk) - The Group will accelerate the strategic deployment of overseas markets, promote in-depth business development in Indonesia and the Middle East markets, pre-emptively lay out the Southeast Asian market, improve the Asia-Pacific sales network, continue to conduct overseas trade, and strive to open up emerging international markets such as North Africa and South America, effectively releasing domestic production capacity[76](index=76&type=chunk)[77](index=77&type=chunk) - Adhering to the concept of technological innovation, the Group will continuously optimize the performance of existing products, increase investment in customized product R&D, and promote the extension of the Company's industrial chain towards high-value-added fields[76](index=76&type=chunk)[77](index=77&type=chunk) [Other Information](index=36&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Interim Dividend](index=36&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[78](index=78&type=chunk) [Material Changes in Business](index=36&type=section&id=%E4%B8%9A%E5%8A%A1%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8) There have been no material changes in the Company's business since the publication of the latest annual report for the year ended December 31, 2024 - There have been **no material changes** in the Company's business since the publication of the latest annual report for the year ended December 31, 2024[79](index=79&type=chunk) [Corporate Governance](index=36&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The Company is committed to high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules since its H-share listing on January 9, 2025 - The Company is committed to achieving **high standards of corporate governance** to ensure shareholders' interests, enhance corporate value, and accountability[80](index=80&type=chunk) - From the listing date up to the end of this reporting period, the Company has complied with the principles and all applicable code provisions set out in Part 2 of the Corporate Governance Code[80](index=80&type=chunk) [Standard Securities Dealing Code](index=36&type=section&id=%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The Company adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the HKEX Listing Rules, and all directors and supervisors have complied with it since the H-share listing date up to the end of the reporting period - The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for securities transactions by the Company's directors and supervisors[81](index=81&type=chunk) - Following specific enquiries made to all directors and supervisors, the Company confirmed that all directors and supervisors have complied with the required standards set out in the Standard Code from the listing date up to the end of this reporting period[82](index=82&type=chunk) [Dealings in Listed Securities](index=37&type=section&id=%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93) From the H-share listing date on January 9, 2025, up to the end of the reporting period, neither the Company nor its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held at period-end - From the listing date up to the end of this reporting period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities[83](index=83&type=chunk) - At the end of the reporting period, the Company held **no treasury shares**[83](index=83&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee, comprising four independent non-executive directors, reviewed the Group's interim results for the six months ended June 30, 2025, and found no disagreement with the accounting treatments adopted by the Company - The Audit Committee is composed of **four independent non-executive directors**, namely Ms. Xu Xu (Chairperson of the Audit Committee), Mr. Li Jiang, Mr. Chen Jiemiao, and Ms. Zeng Xiangfei[84](index=84&type=chunk) - The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2025, and had **no disagreement** with the accounting treatments adopted by the Company[84](index=84&type=chunk) [Material Events After Reporting Period](index=37&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) After the reporting period, the Company's extraordinary general meeting on July 30, 2025, approved the re-election of the second session of the Board of Directors and Supervisory Committee for a three-year term, with no other material events affecting the Group disclosed since the end of the reporting period - The Company's shareholders approved the re-election of the directors of the second session of the Board of Directors and the supervisors of the Supervisory Committee for a three-year term, commencing from **July 30, 2025**, at the extraordinary general meeting held on July 30, 2025[85](index=85&type=chunk) - Except for those disclosed in this announcement, there have been **no other material events** affecting the Group that require disclosure from the end of the reporting period up to the date of this announcement[85](index=85&type=chunk) [Publication of Report](index=38&type=section&id=%E6%8A%A5%E5%91%8A%E5%88%8A%E5%8F%91) This results announcement will be published on the Company's and HKEX websites, and the interim report containing all information required by the Listing Rules will be published and dispatched to shareholders in due course - This results announcement will be published on the Company's website (www.conchmst.com) and the HKEX website (www.hkexnews.hk)[86](index=86&type=chunk) - The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be published on the HKEX and Company websites in due course and dispatched to shareholders (as required)[86](index=86&type=chunk) [Board Composition](index=38&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E7%BB%84%E6%88%90) As of the announcement date, the Board comprises Mr. Ding Feng (Chairman and Non-executive Director), Mr. Chen Feng and Mr. Bai Lin (Executive Directors), Mr. Feng Fangbo, Mr. Zhao Hongyi, Mr. Jin Feng, and Mr. Fan Haibin (Non-executive Directors), and Mr. Li Jiang, Mr. Chen Jiemiao, Ms. Xu Xu, and Ms. Zeng Xiangfei (Independent Non-executive Directors) - As of the date of this announcement, the Board comprises Mr. Ding Feng (Chairman and Non-executive Director); Mr. Chen Feng and Mr. Bai Lin (Executive Directors); Mr. Feng Fangbo, Mr. Zhao Hongyi, Mr. Jin Feng, and Mr. Fan Haibin (Non-executive Directors); and Mr. Li Jiang, Mr. Chen Jiemiao, Ms. Xu Xu, and Ms. Zeng Xiangfei (Independent Non-executive Directors)[88](index=88&type=chunk)

目錄 備查文件目錄 2 財務摘要 3 第一節 重要提示和釋義 5 第二節 公司簡介和主要財務指標 11 第三節 管理層討論與分析 16 第四節 公司治理 66 第五節 重要事項 69 第六節 股份變動及股東情况 70 第七節 財務報告 81 備查文件目錄 2 麗珠醫藥集團股份有限公司 二零二五年中期報告 （一） 載有公司負責人、主管會計工作負責人、會計機構負責人（會計主管人員）簽名並蓋章的按照《中 國企業會計準則》編制的截至2025年6月30日止六個月的未經審計的財務報表。 （二） 本報告期內公開披露過的所有本公司文件的正本及公告的原稿。 （三） 在香港交易及結算所有限公司網站公佈的本公司2025年H股半年度報告英文版和中文版。 財務摘要 -0.17% 9.40% 8.91% 10.26% 13.66% 1,170.97 6,282.35 1,281.09 6,271.91 1,155.47 1,258.46 1,530.03 1,686.94 1,608.39 1,828.11 主要財務指標（人民幣百萬元） 營業收入 歸屬於本公司股東 利潤總額 的淨利潤 歸屬於本公司股東的 扣除非經常性損益 經營活動產生的 ...