[Company Information](index=3&type=section&id=Company%20Information) This section details changes in the company's board, supervisory committee, and key personnel, along with auditor and contact information [Directors, Supervisors, and Committee Members](index=3&type=section&id=Directors%2C%20Supervisors%2C%20and%20Committee%20Members) During the reporting period, the company's board, supervisory committee, and various committees saw multiple changes, including the resignations of Non-executive Director Ms. Wang Aijun and Independent Non-executive Director Mr. Ouyang Hui, and the appointments of Ms. Wen Jie, Mr. Jia Shaojun, and Mr. Zhou Xin to different committees - Non-executive Director Ms. Wang Aijun resigned on **April 13, 2025**[6](index=6&type=chunk) - Independent Non-executive Director Mr. Ouyang Hui resigned on **April 13, 2025**[6](index=6&type=chunk) - Ms. Wen Jie was appointed as a member of the Audit Committee and Nomination Committee on **April 17, 2025**[6](index=6&type=chunk) - Mr. Jia Shaojun and Mr. Zhou Xin were appointed as members of the Strategy Committee on **April 17, 2025**[6](index=6&type=chunk) [Company Secretary, Authorized Representatives, and Other Key Information](index=4&type=section&id=Company%20Secretary%2C%20Authorized%20Representatives%2C%20and%20Other%20Key%20Information) Changes occurred in the company's joint company secretary and authorized representatives, with Ms. Lam Wing Chi resigning and Ms. Wong Pui Kiu appointed; the company's auditor is Ernst & Young, and information on its registered office, headquarters, principal place of business in Hong Kong, H-share registrar, and principal bankers was disclosed - Joint Company Secretary Ms. Lam Wing Chi resigned on **June 13, 2025**, and Ms. Wong Pui Kiu was appointed[8](index=8&type=chunk) - Authorized Representative Ms. Lam Wing Chi resigned on **June 13, 2025**, and Ms. Wong Pui Kiu was appointed[8](index=8&type=chunk) - The company's auditor is **Ernst & Young**[8](index=8&type=chunk) - The company's stock code is **06660**, and its website is **www.aimbio.com**[10](index=10&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's business, R&D pipeline, production capabilities, industry landscape, future prospects, and financial performance for the reporting period [Business Overview and Outlook](index=6&type=section&id=Business%20Overview%20and%20Outlook) Aim Vaccine, a leading Chinese vaccine enterprise, covers the entire value chain from R&D to commercialization, possessing five major technology platforms and seven R&D teams, with 8 commercialized and 20 pipeline products, including 4 core products expected to launch in 2025, while actively expanding internationally, despite a **4.2% year-on-year revenue decrease in H1 2025** - The company possesses five human vaccine technology platforms: bacterial, viral, genetic engineering, combination, and mRNA[12](index=12&type=chunk) - The company has **8 commercialized products** for **6 diseases**, with sales covering all **31 provinces, municipalities, and autonomous regions** in China[12](index=12&type=chunk) - The company has **20 R&D vaccine products** for **12 disease areas**, with **4 core products** (13-valent pneumococcal conjugate vaccine, serum-free rabies vaccine, 23-valent pneumococcal polysaccharide vaccine, high-titer human diploid cell rabies vaccine) in the final stages of market launch[13](index=13&type=chunk) - In H1 2025, the company's quadrivalent meningococcal polysaccharide vaccine entered the **African market**, and its rabies vaccine entered the **Central American market**[16](index=16&type=chunk) 2025 H1 Sales Revenue by Product Category | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :----------------- | :----------------- | :----------- | | Total Vaccine Product Sales Revenue | 514,657 | 537,178 | -4.2% | | Class I Vaccine Sales Revenue | 55,876 | 54,100 | +3.3% | | Class II Vaccine Sales Revenue | 458,781 | 483,078 | -5.0% | [Our Products and R&D Pipeline](index=8&type=section&id=Our%20Products%20and%20R%26D%20Pipeline) The company has commercialized eight vaccine products, with recombinant hepatitis B vaccine and lyophilized human rabies vaccine being market leaders; its rich R&D pipeline includes multivalent pneumococcal vaccines, iterated rabies vaccines, mRNA RSV, and shingles vaccines, with many products in late-stage clinical trials or marketing application, supported by AI technology and a professional internal R&D team - The company has commercialized **eight vaccine products** for **six disease areas**, with recombinant hepatitis B vaccine and lyophilized human rabies vaccine being the main commercialized vaccines[18](index=18&type=chunk) - The recombinant hepatitis B vaccine (Hansenula polymorpha) is China's **first and only company** to achieve stable production and batch release of hepatitis B vaccine using Hansenula polymorpha for antigen expression, possessing a patented process[19](index=19&type=chunk) - The lyophilized human rabies vaccine (Vero cell) has long held a leading market position, being the **second largest supplier** in the rabies vaccine market, maintaining a **100% pass rate** in batch release quality reviews for **18 years**[22](index=22&type=chunk) - The **13-valent pneumococcal conjugate vaccine (PCV13)** has submitted a marketing authorization application to the NMPA and completed on-site inspections[26](index=26&type=chunk) - The serum-free iterated rabies vaccine has officially submitted a marketing authorization application, with no serum-free rabies vaccines yet approved for market launch globally[31](index=31&type=chunk) - Both **mRNA RSV vaccine** and **mRNA shingles vaccine** have received clinical trial approvals in China and the United States[35](index=35&type=chunk) - The company is currently utilizing **AI** for vaccine antigen structure and mRNA sequence design, and is exploring AI assistance in vaccine process R&D[39](index=39&type=chunk) [Our Vaccine Products](index=9&type=section&id=Our%20Vaccine%20Products) The company's commercialized products include recombinant hepatitis B vaccine (Hansenula polymorpha, China's only), lyophilized human rabies vaccine (Vero cell, second largest market supplier), inactivated hepatitis A vaccine (human diploid cell), and ACYW135 group meningococcal polysaccharide vaccine (MPSV4), which hold leading market positions and unique advantages, such as the hepatitis B vaccine's patented process and the rabies vaccine's 100% batch release pass rate - The recombinant hepatitis B vaccine (Hansenula polymorpha) is produced using a patented process, free of preservatives, antibiotics, and bovine serum albumin, with an expiry date until **May 2032**[19](index=19&type=chunk) - Since its commercialization in **2007**, the lyophilized human rabies vaccine (Vero cell) has maintained a **100% pass rate** in batch release quality reviews by the National Institutes for Food and Drug Control[22](index=22&type=chunk) - The ACYW135 group meningococcal polysaccharide vaccine (MPSV4) contains no antibiotics or preservatives and has a shelf life of **three years**, making it the only one of its kind[24](index=24&type=chunk) [Our R&D Vaccines](index=11&type=section&id=Our%20R%26D%20Vaccines) The company's R&D vaccine pipeline covers pneumonia, rabies, hand-foot-and-mouth disease, influenza, shingles, and RSV, with multiple products in late-stage clinical trials or marketing application, particularly iterated pneumococcal and rabies vaccine series, and innovative mRNA-based vaccines, demonstrating strong R&D capabilities R&D Vaccine Portfolio Overview | Technology Platform | Indication | R&D Vaccine | Development Stage | | :--- | :--- | :--- | :--- | | Bacterial Vaccine | Pneumococcal Disease | 13-valent Pneumococcal Conjugate Vaccine (PCV13) | Marketing Authorization Application Submitted | | | | 20-valent Pneumococcal Conjugate Vaccine (PCV20) | Clinical Trial Application Submitted | | | | 23-valent Pneumococcal Polysaccharide Vaccine (PPSV23) | Pre-marketing Authorization Application Planned for 2025 | | Viral Vaccine | Rabies | Serum-free Iterated Rabies Vaccine | Marketing Authorization Application Submitted | | | | Novel Process High-titer Human Diploid Cell Rabies Vaccine | Phase III Clinical Trials Ongoing | | mRNA Vaccine | Shingles | mRNA Shingles Vaccine | Clinical Trial Approval Obtained (China & US) | | | Respiratory Syncytial Virus Infection | mRNA Respiratory Syncytial Virus (RSV) Vaccine | Clinical Trial Approval Obtained (China & US) | - The Phase III clinical study results for the company's **13-valent pneumococcal conjugate vaccine (PCV13)** demonstrated good immunogenicity and safety, meeting clinical endpoints[27](index=27&type=chunk) - The serum-free iterated rabies vaccine contains no animal serum, significantly enhancing safety and reducing the probability of adverse reactions[31](index=31&type=chunk) - The **EV71-CA16 bivalent hand-foot-and-mouth disease vaccine** is the world's first R&D vaccine designed to provide immunity against EV71 and CA16 virus strains, being the first to receive clinical approval[38](index=38&type=chunk) [Vaccine Development Platform Technologies and Internal R&D Team](index=15&type=section&id=Vaccine%20Development%20Platform%20Technologies%20and%20Internal%20R%26D%20Team) The company possesses five validated human vaccine platform technologies, including mRNA, genetic engineering, and combination vaccines, and utilizes AI to assist in vaccine antigen structure, mRNA sequence design, and process R&D, with an internal R&D team comprising three research institutions and four manufacturing subsidiaries' R&D centers, each with specialized focus - The company possesses **five validated human vaccine platform technologies**, including mRNA vaccine, genetic engineering vaccine, and combination vaccine technologies[39](index=39&type=chunk) - The company is currently utilizing **AI** for vaccine antigen structure and mRNA sequence design, and is exploring AI

[Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) [Financial Performance Overview](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss-Overview) For the six months ended June 30, 2025, the Group turned from profit to loss, recording an operating loss, a significant expansion in net loss, and an increase in basic loss per share, primarily due to decreased revenue and finance costs | Metric | Six Months Ended June 30, 2025 (thousand RMB) | Six Months Ended June 30, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,153,490 | 2,683,496 | -19.75% | | Gross Profit | 162,749 | 270,353 | -39.79% | | Operating (Loss)/Profit | (58,008) | 78,064 | Turned from Profit to Loss | | Loss Before Tax | (290,442) | (149,872) | Increased by 93.79% | | Loss for the Period | (318,743) | (136,888) | Increased by 132.85% | | Loss Attributable to Equity Holders of the Company | (258,451) | (119,006) | Increased by 117.17% | | Basic and Diluted Loss Per Share (RMB) | (0.15) | (0.07) | Increased by 114.29% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Comprehensive Income Overview](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income-Overview) Total comprehensive income for the period was **RMB (258,961) thousand**, an improvement from **RMB (450,421) thousand** in the prior period, primarily due to the positive impact of exchange differences despite an expanded loss for the period | Metric | Six Months Ended June 30, 2025 (thousand RMB) | Six Months Ended June 30, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Loss for the Period | (318,743) | (136,888) | Increased by 132.85% | | Exchange Differences | 59,656 | (313,859) | Turned from Negative to Positive | | Total Comprehensive Income for the Period | (258,961) | (450,421) | Improved by 42.49% | | Total Comprehensive Income Attributable to Equity Holders of the Company | (198,677) | (432,559) | Improved by 54.07% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) [Assets and Liabilities Overview](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position-Overview) As of June 30, 2025, the Group's current and non-current assets both decreased, leading to a decline in total assets; while current liabilities slightly decreased, net current liabilities and net assets both deteriorated, indicating increased liquidity pressure | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 10,241,865 | 10,462,116 | -2.11% | | Current Assets | 3,234,569 | 3,760,649 | -14.00% | | Current Liabilities | 10,413,698 | 10,560,725 | -1.39% | | Net Current Liabilities | (7,179,129) | (6,800,076) | Deteriorated by 5.57% | | Non-current Liabilities | 2,437,671 | 2,778,014 | -12.25% | | Net Assets | 625,065 | 884,026 | -29.29% | | Total Equity | 625,065 | 884,026 | -29.29% | [Notes to the Unaudited Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Information) [1. Company Information](index=6&type=section&id=1%20Company%20Information) China Glass Holdings Limited is incorporated in Bermuda and listed on the Hong Kong Stock Exchange, primarily engaged in the production, marketing, and distribution of glass and glass products, as well as the design, installation, and technical research and development of glass production lines - The company is incorporated in Bermuda, listed in Hong Kong, and primarily engaged in glass product manufacturing, marketing, distribution, and related technical services[10](index=10&type=chunk) [2. Basis of Preparation and Going Concern Risk](index=6&type=section&id=2%20Basis%20of%20Preparation) The interim financial report is prepared in accordance with HKAS 34 and reviewed by KPMG, revealing significant going concern uncertainties due to net losses, substantial net current liabilities, and multiple loan defaults and cross-defaults requiring immediate repayment of a large amount of borrowings, with management actively pursuing debt restructuring, strategic investors, and major shareholder support to mitigate liquidity pressure - The interim financial report is prepared in accordance with HKAS 34 and reviewed by KPMG[11](index=11&type=chunk)[12](index=12&type=chunk) - The Group's net loss for the six months ended June 30, 2025, was **RMB318,743,000**, with net current liabilities of **RMB7,179,129,000**[13](index=13&type=chunk) - Subsequent to the reporting period, the Group defaulted on **RMB1,295,854,000** in due borrowings and triggered cross-default clauses on approximately **RMB6,711,453,000** of other outstanding borrowings, resulting in a total of **RMB8,007,307,000** in borrowings becoming immediately repayable[13](index=13&type=chunk)[15](index=15&type=chunk) - Management is implementing various measures to alleviate liquidity pressure, including negotiating debt restructuring with lenders, seeking strategic investors, and receiving **RMB1,177,612,000** in financial assistance and **RMB1,253,777,000** in trade and other payables support from the largest shareholder, Kaisheng Technology Group Co Ltd, with no repayment required within the next twelve months[14](index=14&type=chunk)[16](index=16&type=chunk) [3. Changes in Accounting Policies](index=9&type=section&id=3%20Changes%20in%20Accounting%20Policies) The Group has applied amendments to HKAS 21, which had no material impact on the interim report as no foreign currency non-exchangeable transactions occurred, and no other new standards or interpretations not yet effective were adopted during the period - The Group has applied amendments to HKAS 21, but they had no material impact on the interim report[17](index=17&type=chunk) - No new standards or interpretations not yet effective were adopted during this accounting period[18](index=18&type=chunk) [4. Revenue and Segment Reporting](index=9&type=section&id=4%20Revenue%20and%20Segment%20Reporting) The Group manages its business across five reportable segments: clear glass, tinted glass, coated glass, energy-saving and new energy glass products, and design and installation related services; for the six months ended June 30, 2025, total revenue decreased by **19.75%** year-on-year, primarily due to reduced revenue from clear glass and energy-saving and new energy glass products, while revenue from tinted glass and coated glass increased, and geographically, revenue from Mainland China and Hong Kong significantly declined, offset by growth in Nigeria, the Middle East, and Kazakhstan - The Group operates five reportable segments: clear glass, tinted glass, coated glass, energy-saving and new energy glass products, and design and installation related services[19](index=19&type=chunk) Revenue by Major Product or Service Line | Product or Service Line | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Sales of Glass Products | 1,989,647 | 2,501,835 | -20.47% | | Revenue from Service Contracts | 109,571 | 150,271 | -27.09% | | Sales of Other Products | 54,272 | 31,390 | +72.89% | | **Total** | **2,153,490** | **2,683,496** | **-19.75%** | Revenue by Customer Geographical Location | Geographical Location | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Mainland China and Hong Kong | 1,292,586 | 1,921,999 | -32.75% | | Nigeria | 220,626 | 163,219 | +35.17% | | Middle East | 161,243 | 145,902 | +10.51% | | Kazakhstan | 95,863 | 64,775 | +47.99% | | Other Countries | 383,172 | 387,601 | -1.14% | | **Total** | **2,153,490** | **2,683,496** | **-19.75%** | Gross (Loss)/Profit by Reportable Segment | Segment | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Clear Glass Products | (35,458) | (11,315) | Loss Expanded | | Tinted Glass Products | 10,339 | 67,548 | -84.70% | | Coated Glass Products | 135,906 | 129,602 | +4.87% | | Energy-Saving and New Energy Glass Products | 17,421 | 42,779 | -59.27% | | Design and Installation Related Services | 34,541 | 41,739 | -17.24% | | **Total** | **162,749** | **270,353** | **-39.79%** | [5. Other Income](index=12&type=section&id=5%20Other%20Income) For the six months ended June 30, 2025, other income significantly increased by **97.40%**, primarily due to a substantial increase in net gain from disposal of property, plant and equipment, offsetting declines in government grants, interest income, and net gain from sales of raw materials and scrap | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Government Grants | 10,399 | 23,475 | -55.69% | | Interest Income | 16,372 | 19,635 | -16.62% | | Net Gain from Sales of Raw Materials and Scrap | 11,043 | 21,313 | -48.19% | | Net Gain/(Loss) from Disposal of Property, Plant and Equipment | 102,730 | (2,019) | Turned from Loss to Gain | | Others | 1,823 | 9,714 | -81.23% | | **Total** | **142,367** | **72,118** | **+97.40%** | - The net gain from disposal of property, plant and equipment primarily resulted from the completed disposal of property, plant and equipment and right-of-use assets of a subsidiary for **RMB297,551,000**[26](index=26&type=chunk) [6. Loss Before Tax](index=12&type=section&id=6%20Loss%20Before%20Tax) For the six months ended June 30, 2025, loss before tax significantly increased to **RMB290,442,000** from **RMB149,872,000** in the prior period, primarily influenced by a slight increase in finance costs and net foreign exchange losses Finance Costs | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Interest on Bank Loans and Other Borrowings | 182,880 | 203,682 | -10.21% | | Interest on Lease Liabilities | 2,338 | 2,699 | -13.30% | | Bank Charges and Other Finance Costs | 47,324 | 33,552 | +41.05% | | Total Borrowing Costs | 232,542 | 239,933 | -3.08% | | Less: Amounts Capitalized | (17,139) | (5,574) | Capitalization Increased | | Net Borrowing Costs | 215,403 | 234,359 | -8.10% | | Net Foreign Exchange Loss/(Gain) | 15,686 | (4,586) | Turned from Gain to Loss | | **Total Finance Costs** | **231,089** | **229,773** | **+0.57%** | Other Items | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Cost of Inventories | 1,917,425 | 2,413,143 | -20.54% | | Depreciation and Amortization Expenses | 354,402 | 327,143 | +8.33% | | Research and Development Costs (excluding capitalized amounts and related amortization) | 14,685 | 11,621 | +26.37% | [7. Income Tax](index=13&type=section&id=7%20Income%20Tax) For the six months ended June 30, 2025, the Group shifted from an income tax credit to an income tax expense, primarily due to taxes arising from the disposal of property, plant and equipment; different corporate income tax rates apply to subsidiaries in various regions, with some Mainland China subsidiaries benefiting from preferential rates for high-tech enterprises and additional tax deductions for R&D costs | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Current Tax (Mainland China) | 25,889 | 9,200 | +181.40% | | Current Tax (Overseas) | 3,754 | 4,920 | -23.69% | | Deferred Tax | (1,342) | (27,104) | Improved by 95.05% | | **Total Income Tax** | **28,301** | **(12,984)** | **Turned from Credit to Expense** | - Income tax expense primarily arose from the consideration for the disposal of property, plant and equipment and right-of-use assets[85](index=85&type=chunk) - Mainland China subsidiaries are subject to a **25%** corporate income tax rate, with some high-tech enterprises enjoying a **15%** preferential rate and **100%** additional tax deduction for R&D costs[31](index=31&type=chunk) - The Kazakhstan subsidiary enjoys corporate income tax exemption from 2016 to 2025[32](index=32&type=chunk) [8. Loss Per Share](index=14&type=section&id=8%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share increased to **RMB0.15** from **RMB0.07** in the prior period, with diluted loss per share being the same as basic loss per share due to the absence of potential dilutive shares | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Company (thousand RMB) | (258,451) | (119,006) | Increased by 117.17% | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 1,684,218 | 1,684,218 | No Change | | Basic Loss Per Share (RMB) | (0.15) | (0.07) | Increased by 114.29% | | Diluted Loss Per Share (RMB) | (0.15) | (0.07) | Increased by 114.29% | [9. Trade and Bills Receivables](index=15&type=section&id=9%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased by **16.54%**, primarily due to an increase in third-party trade receivables and a corresponding increase in loss allowance, with the aging analysis showing a significant rise in receivables aged more than six months but less than one year | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Trade Receivables from Third Parties | 523,160 | 430,374 | +21.56% | | Trade Receivables from Kaisheng Group and its Associates | 594 | 1,371 | -56.67% | | Loss Allowance | (160,390) | (139,636) | Increased by 14.86% | | Bills Receivables | 26,336 | 42,287 | -37.72% | | **Total** | **389,700** | **334,396** | **+16.54%** | Aging Analysis of Trade and Bills Receivables (net of loss allowance) | Aging | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Within one month | 144,660 | 151,871 | -4.75% | | More than one month but less than three months | 114,278 | 97,562 | +17.13% | | More than three months but less than six months | 54,275 | 60,161 | -9.78% | | More than six months but less than one year | 61,229 | 6,768 | +804.69% | | Over one year | 15,258 | 18,034 | -15.39% | | **Total** | **389,700** | **334,396** | **+16.54%** | [10. Other Receivables](index=16&type=section&id=10%20Other%20Receivables) As of June 30, 2025, total other receivables slightly decreased, primarily due to stable amounts due from related parties and an increase in loss allowance within deposits and other receivables | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Amounts Due from Related Parties | 115,408 | 115,408 | 0.00% | | Deposits and Other Receivables (net of loss allowance) | 154,252 | 156,896 | -1.69% | | VAT to be Deducted/Deductible | 184,619 | 184,989 | -0.20% | | **Total** | **454,279** | **457,293** | **-0.66%** | - Amounts due from related parties are unsecured, interest-free, and have no fixed repayment terms[38](index=38&type=chunk) [11. Trade and Bills Payables](index=17&type=section&id=11%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables increased by **13.25%**, primarily due to higher trade payables to third parties and bills payables, with the aging analysis indicating that the majority of amounts are repayable within one month or on demand | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Trade Payables to Third Parties | 808,517 | 716,531 | +12.83% | | Trade Payables to Kaisheng Group and its Associates | 222,810 | 214,172 | +4.03% | | Bills Payables | 239,496 | 191,458 | +25.09% | | **Total** | **1,270,823** | **1,122,161** | **+13.25%** | Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Within one month or on demand | 1,073,831 | 955,897 | +12.34% | | More than one month but within six months | 184,146 | 166,264 | +10.76% | | More than six months but within one year | 12,846 | – | Newly Added | | **Total** | **1,270,823** | **1,122,161** | **+13.25%** | [12. Accruals and Other Payables](index=18&type=section&id=12%20Accruals%20and%20Other%20Payables) As of June 30, 2025, total accruals and other payables slightly decreased, primarily due to a reduction in payables related to the construction and purchase of property, plant and equipment, while amounts due to related parties remained stable | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Amounts Due to Related Parties | 1,087,611 | 1,082,204 | +0.50% | | Accruals and Other Payables (financial liabilities measured at amortized cost) | 1,574,758 | 1,625,860 | -3.14% | | Various Taxes Payable | 48,628 | 60,490 | -19.59% | | Provision for Legal Claims | 488 | 1,506 | -67.59% | | **Total** | **1,623,874** | **1,687,856** | **-3.80%** | - Amounts due to related parties are unsecured, interest-free, and have no fixed repayment terms[40](index=40&type=chunk) [13. Share Capital, Reserves and Dividends](index=19&type=section&id=13%20Share%20Capital%2C%20Reserves%20and%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025; the company has a share option scheme and a share award scheme, but no share options were granted or exercised, nor were any share awards granted to employees during the period - The Board does not recommend an interim dividend for the six months ended June 30, 2025[41](index=41&type=chunk) - Neither the share option scheme nor the share award scheme had any share options granted or exercised, or share awards granted to any selected employees during the period[42](index=42&type=chunk)[44](index=44&type=chunk) - As of June 30, 2025, the number of shares held under the share award scheme was **152,000 thousand shares**, consistent with the prior period[44](index=44&type=chunk) [14. Contingent Liabilities](index=20&type=section&id=14%20Contingent%20Liabilities) The Group faces two main contingent liabilities: first, the Kazakhstan subsidiary Orda Glass Ltd LLP was accused of exceeding pollutant emission limits and fined, but the fine was subsequently revoked by the court, with the final outcome remaining uncertain; second, loan defaults and cross-defaults occurring after the reporting period may lead to penalty interest, the amount of which cannot be reliably estimated at present - Kazakhstan subsidiary Orda Glass was fined for exceeding pollutant emission limits, but the penalty was fully revoked upon appeal, though the final outcome remains uncertain[45](index=45&type=chunk) - Loan defaults and cross-defaults occurring after the reporting period may trigger penalty interest clauses, but the amount of penalty interest cannot be reliably estimated at present[46](index=46&type=chunk) [15. Non-Adjusting Events After the Reporting Period](index=21&type=section&id=15%20Non-Adjusting%20Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the Group incurred loan defaults totaling **RMB1,295,854,000** and triggered cross-default clauses on approximately **RMB6,711,453,000** of other outstanding borrowings, resulting in a total of **RMB8,007,307,000** in borrowings becoming immediately repayable; this interim financial report did not reclassify non-current borrowings to current liabilities as a result, and management is actively taking measures to alleviate liquidity pressure - Subsequent to the reporting period, the Group incurred loan defaults totaling **RMB1,295,854,000**, including a syndicated loan and multiple bank borrowings[47](index=47&type=chunk) - These defaults triggered cross-default clauses on approximately **RMB6,711,453,000** of other outstanding borrowings, resulting in a total of **RMB8,007,307,000** in borrowings becoming immediately repayable[47](index=47&type=chunk) - This interim financial report did not reclassify non-current bank and other borrowings to current liabilities due to the triggering of cross-default clauses[47](index=47&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) [Market Review](index=22&type=section&id=Market%20Review) In the first half of 2025, the global economy faced downward pressure with a tightening international trade environment; the domestic real estate sector showed weak recovery, leading to oversupply and price pressure in the architectural glass market, while the photovoltaic industry experienced supply-demand imbalance and shrinking profit margins, in contrast to the steady development of the concentrated solar power industry - Global economic downturn, tightening international trade environment, and declining investments in sustainable development and cross-border project financing[48](index=48&type=chunk) - Weak recovery in the domestic real estate sector, oversupply in the architectural glass market, and product price pressure[49](index=49&type=chunk) - The photovoltaic industry experienced supply-demand imbalance and shrinking profit margins, while the concentrated solar power industry maintained steady development with high market prosperity for solar thermal glass[49](index=49&type=chunk) [Business Review](index=23&type=section&id=Business%20Review) The Group operates 15 float glass production lines (11 currently running), offering diverse glass products, and actively pursues a "going out" strategy with operations in Nigeria, Kazakhstan, and Italy; in the first half, both glass production and sales volumes decreased, accompanied by a significant drop in average selling prices, prompting the company to focus on "three major battles" (cash flow improvement, cost reduction, loss management) and achieve progress in overseas operations, technological innovation, performance assessment, and compliance management - The Group operates **15 float glass production lines**, with **11 currently running**, and its products are applied in construction, automotive, solar power generation, and other fields[50](index=50&type=chunk) - Actively implementing the "going out" strategy, the Group has completed industrial layouts in Nigeria, Kazakhstan, and Italy, and is advancing the construction of a float glass production line in Egypt[51](index=51&type=chunk) Production, Sales, and Average Selling Price Overview | Metric | H1 2025 | Prior Period | Change | | :--- | :--- | :--- | :--- | | Various Glass Products Production Volume | Approx. 28 million weight boxes | - | Decreased by approx. 8% | | Sales Volume | Approx. 25 million weight boxes | - | Decreased by approx. 1% | | Comprehensive Average Selling Price | RMB80/weight box | - | Decreased by approx. 20% | - In the first half, soda ash prices declined, mineral raw material prices fluctuated at low levels but transportation costs increased; domestic pipeline gas prices declined, while petroleum coke prices fluctuated upwards[53](index=53&type=chunk)[54](index=54&type=chunk) - The company implemented "three major battles" (cash flow improvement, cost reduction, loss management), achieving results through energy management, lean production, product structure optimization, asset operation enhancement, and organizational efficiency improvement[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Overseas subsidiaries performed well, with **Nigeria company's net profit significantly increasing**, Kazakhstan company improving operational quality and efficiency, Italy company experiencing strong growth in its photovoltaic business, and the Egypt project progressing in an orderly manner[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - Significant technological innovation achievements include mass production of new low-resistance home appliance Low-E glass and triple-silver high-performance Low-E glass, with "China Glass Blue" high-performance energy-saving glass selected as an industry demonstration case[64](index=64&type=chunk) - Strengthened performance appraisal mechanisms, deepened the link between performance and remuneration; enhanced corporate culture and employee cohesion through enterprise craftsman selection and 20th-anniversary listing activities[65](index=65&type=chunk) - Comprehensively strengthened compliance management, enhanced legal literacy and risk prevention capabilities; improved capital market monitoring system, increased brand exposure, and achieved the highest "A+" ESG rating in the building materials industry[66](index=66&type=chunk) [Market Outlook and Second Half Work Plan](index=28&type=section&id=Market%20Outlook%20and%20Second%20Half%20Work%20Plan) Global economic growth is expected to slow further in the second half of 2025, with China's real estate and photovoltaic markets undergoing deep adjustments, accelerating the elimination of outdated capacity in the flat glass industry; demand in niche markets such as automotive glass, energy-efficient architectural glass, conductive glass, and solar thermal glass is projected to remain robust, while raw material prices are anticipated to trend downwards or remain stable with slight decreases; the second half work plan includes coordinating debt restructuring, deepening the "going out" strategy, driving product structure transformation through technological upgrades, and continuously advancing the "three major battles" to optimize resource allocation - Global economic growth in the second half of 2025 is expected to slow further due to US trade barriers, with China's real estate and photovoltaic power generation markets entering a period of deep adjustment[67](index=67&type=chunk) - Market demand in niche segments such as automotive glass, energy-efficient architectural glass, and conductive glass will continue its boom cycle, with a significant increase in demand for high-performance solar thermal glass in the concentrated solar power sector[68](index=68&type=chunk)[69](index=69&type=chunk) - The soda ash and various mineral raw material markets are expected to enter a weak operating phase in the second half, with prices continuing to decline or remaining stable with slight decreases; natural gas prices will maintain mid-year fluctuation levels, and petroleum coke prices are projected to decline[70](index=70&type=chunk)[71](index=71&type=chunk) - The second half work plan includes: coordinating the debt restructuring plan to ensure debt repayment and going concern ability; steadfastly deepening the "going out" development strategy to enhance the performance contribution of overseas companies; driving product structure transformation and upgrading through technological advancements to improve the operating performance of domestic bases; and continuously advancing the "three major battles" to optimize the resource allocation system[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Financial Review](index=30&type=section&id=Financial%20Review) In the first half of 2025, the Group's revenue decreased by **20%** year-on-year, primarily due to lower sales volume and average selling prices; gross profit significantly declined by **40%**, mainly driven by reduced selling prices of glass products in Mainland China; administrative expenses slightly decreased, finance costs slightly increased, and income tax shifted from a credit to an expense; the loss for the period substantially increased by **132.85%**, primarily impacted by the sluggish domestic real estate and photovoltaic markets and macroeconomic uncertainties; both current and non-current assets decreased, current liabilities slightly reduced, and non-current liabilities decreased by **12%** Revenue by Product Segment Change | Segment | 2025 (thousand RMB) | 2024 (thousand RMB) | Change Percentage | | :--- | :--- | :--- | :--- | | Clear Glass | 732,652 | 1,153,320 | (36%) | | Tinted Glass | 405,459 | 374,406 | 8% | | Coated Glass | 434,206 | 430,096 | 1% | | Energy-Saving and New Energy Glass | 417,330 | 544,013 | (23%) | | Design and Installation Related Services | 163,843 | 181,661 | (10%) | | **Total** | **2,153,490** | **2,683,496** | **(20%)** | - Revenue from clear glass and energy-saving and new energy glass products decreased by **36%** and **23%** respectively, primarily due to lower sales volume and average selling prices of ordinary architectural glass and photovoltaic glass[78](index=78&type=chunk) - Sales volumes of tinted glass and coated glass products increased by approximately **46%** and **17%** respectively, while export glass product sales increased by approximately **95%**, and overseas glass product sales increased by approximately **14%**[79](index=79&type=chunk) - The average selling price of glass products decreased by approximately **20%** compared to the prior period, primarily due to the sluggish domestic real estate sector and intense competition, with the domestic average selling price decreasing by approximately **28%**[80](index=80&type=chunk) - Cost of sales decreased by approximately **18%**, primarily due to a decrease in the unit cost of glass products sold[81](index=81&type=chunk) - Gross profit decreased by approximately **40%**, primarily due to a decline in the average selling price of glass products in Mainland China[82](index=82&type=chunk) - The loss for the period significantly increased by **132.85%**, primarily impacted by the downturn in China's real estate and photovoltaic industries, market oversupply, and macroeconomic uncertainties[86](index=86&type=chunk) - Current assets decreased by approximately **14%**, non-current assets decreased by approximately **2%**, current liabilities slightly decreased by approximately **1%**, and non-current liabilities decreased by approximately **12%**[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Capital Structure, Liquidity, Financial Resources and Gearing Ratio](index=34&type=section&id=Capital%20Structure%2C%20Liquidity%2C%20Financial%20Resources%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's cash and bank balances decreased, and total outstanding bank loans and other borrowings decreased, with **76%** maturing within one year; cross-default clauses triggered after the reporting period led to a large amount of borrowings becoming immediately repayable; while the debt-to-equity ratio and gearing ratio remained stable, the current ratio declined and net current liabilities increased, indicating continued liquidity pressure Liquidity and Liability Metrics | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances (thousand RMB) | 1,017,474 | 1,302,086 | -21.86% | | Outstanding Bank Loans and Other Borrowings (thousand RMB) | 9,321,088 | 9,916,940 | -6.01% | | Debt-to-Equity Ratio | 0.7 | 0.7 | No Change | | Current Ratio | 0.31 | 0.36 | -13.89% | | Net Current Liabilities (thousand RMB) | (7,179,129) | (6,800,076) | Deteriorated by 5.57% | | Gearing Ratio | 0.95 | 0.94 | Slight Increase | | Proportion of Borrowings Due Within One Year | 76% | 74% | Increased | | Proportion of Borrowings Due After One Year | 24% | 26% | Decreased | - Subsequent to the reporting period, cross-default clauses were triggered on borrowings of **RMB1,760,409,000** originally due after one year, resulting in these borrowings becoming immediately repayable[92](index=92&type=chunk) [Exchange Rate Fluctuation Risk and Hedging](index=35&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Hedging) The Group's transactions and monetary assets are primarily denominated in RMB, Naira, Tenge, USD, and Euro; fluctuations in the RMB exchange rate against other currencies may impact the Group's net assets, profit or loss, and dividends; as of June 30, 2025, the Group had not purchased any derivative instruments for hedging purposes - The Group's transactions and monetary assets are primarily denominated in RMB, Naira, Tenge, USD, and Euro[94](index=94&type=chunk) - Fluctuations in the RMB exchange rate against other currencies may impact the Group's net assets, profit or loss, and dividends[94](index=94&type=chunk) - For the six months ended June 30, 2025, the Group had not purchased any derivative instruments for hedging purposes[94](index=94&type=chunk) [Significant Acquisitions and Disposals, Material Investments and Future Plans for Material Investments or Capital Asset Acquisitions](index=35&type=section&id=Significant%20Acquisitions%20and%20Disposals%2C%20Material%20Investments%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Asset%20Acquisitions) For the six months ended June 30, 2025, the Group had no significant investments, acquisitions or disposals of subsidiaries and associates, nor any future plans for material investments or capital asset acquisitions - During the period, there were no significant investments, acquisitions or disposals of subsidiaries and associates, or future plans for material investments or capital asset acquisitions[96](index=96&type=chunk) [Significant Events After the Reporting Period](index=35&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period) Significant events impacting the Group occurred after the reporting period, with details disclosed in Note 15 to the Unaudited Interim Financial Information, primarily concerning loan defaults and cross-defaults - Significant events impacting the Group occurred after the reporting period, with details disclosed in Note 15 to the Unaudited Interim Financial Information[97](index=97&type=chunk) [Corporate Governance and Other Information](index=36&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Human Resources and Employee Remuneration](index=36&type=section&id=Human%20Resources%20and%20Employee%20Remuneration) As of June 30, 2025, the Group's employee headcount decreased by approximately **14.84%**, primarily due to management's phased elimination of less profitable production lines in Mainland China; the company ensures competitive employee remuneration and provides welfare plans compliant with local labor laws and regulations | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | Approx. 3,908 | Approx. 4,589 | -14.84% | - The decrease in employee headcount was primarily due to management's prudent decision to gradually phase out less profitable production lines in Mainland China, along with the formulation of detailed redundancy plans and compensation schemes[98](index=98&type=chunk) - The Group ensures competitive employee remuneration and provides welfare plans compliant with local labor laws and regulations[99](index=99&type=chunk) [Interim Dividend](index=36&type=section&id=Interim%20Dividend) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025[100](index=100&type=chunk) [Share Option Scheme and Share Award Scheme](index=36&type=section&id=Share%20Option%20Scheme%20and%20Share%20Award%20Scheme) The company has a share option scheme and a share award scheme designed to incentivize and retain employees; for the six months ended June 30, 2025, no share options were granted or exercised, nor were any share awards granted, exercised, cancelled, or lapsed under either scheme; the share award scheme has been extended to December 12, 2031 - The company has a share option scheme and a share award scheme aimed at incentivizing and retaining employees[101](index=101&type=chunk)[102](index=102&type=chunk) - For the six months ended June 30, 2025, no share options or share awards were granted, exercised, cancelled, or lapsed under either scheme[101](index=101&type=chunk)[107](index=107&type=chunk) - The share award scheme has been extended to December 12, 2031[107](index=107&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[108](index=108&type=chunk) [Sufficiency of Public Float](index=38&type=section&id=Sufficiency%20of%20Public%20Float) For the six months ended June 30, 2025, and up to the latest practicable date before the publication of this announcement, the company maintained a public float of not less than **25%** as required by the Listing Rules of the Hong Kong Stock Exchange - The company has maintained a public float of not less than **25%** as required by the Listing Rules of the Hong Kong Stock Exchange[109](index=109&type=chunk) [Audit Committee](index=38&type=section&id=Audit%20Committee) The company's Audit Committee has reviewed the Group's accounting principles, operations, risk management, internal controls, and financial reporting matters, including these interim results, with management and external auditor KPMG - The Audit Committee has reviewed the Group's accounting principles, operations, risk management, internal controls, and financial reporting matters, including these interim results, with management and KPMG[110](index=110&type=chunk) [Excerpt from Review Report on Interim Financial Information](index=39&type=section&id=Excerpt%20from%20Review%20Report%20on%20Interim%20Financial%20Information) External auditor KPMG highlighted significant going concern uncertainties in its review report, primarily due to net losses, net current liabilities, and loan defaults and cross-defaults occurring after the reporting period, leading to a large amount of borrowings becoming immediately repayable; the auditor's review conclusion on this matter remains unmodified - The auditor emphasized significant going concern uncertainties for the Group due to net losses, net current liabilities, and loan defaults and cross-defaults occurring after the reporting period[111](index=111&type=chunk) - The auditor's review conclusion on this going concern matter remains unmodified[111](index=111&type=chunk) [Investor Relations and Communication](index=39&type=section&id=Investor%20Relations%20and%20Communication) The company actively promotes investor relations and facilitates communication through regular meetings with institutional investors and financial analysts to ensure two-way dialogue - The company actively promotes investor relations and facilitates communication through regular meetings[112](index=112&type=chunk) [Compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors](index=39&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code%20and%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has applied and complied with the principles and applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules, and all directors confirmed their compliance with the Model Code for Securities Transactions by Directors throughout the period - The company has applied and complied with the principles and applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[113](index=113&type=chunk) - All directors confirmed their compliance with the Model Code for Securities Transactions by Directors throughout the period[114](index=114&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=40&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company; the interim report containing all information will be dispatched to shareholders and published on the aforementioned websites in due course - This interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company[115](index=115&type=chunk) - The interim report containing all information will be dispatched to shareholders and published on the aforementioned websites in due course[115](index=115&type_chunk)

[Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The company reported a significant reduction in losses across all key metrics, driven by revenue growth and a shift from gross loss to gross profit Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 38,872 | 32,449 | +19.8% | | Gross Profit/(Loss) | 2,542 | (3,107) | Turned from loss to profit | | Operating Loss | (19,308) | (124,588) | Loss narrowed by 84.5% | | Loss Before Tax | (37,159) | (126,258) | Loss narrowed by 70.6% | | Loss for the Period | (36,753) | (125,731) | Loss narrowed by 70.8% | | Loss Attributable to Owners of the Company | (32,006) | (79,917) | Loss narrowed by 60.0% | | Basic and Diluted Loss Per Share (HKD) | (0.033) | (0.083) | Loss narrowed by 60.2% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) The company's total assets increased slightly, while current assets decreased and total liabilities rose, leading to a decline in total equity Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 538,426 | 529,955 | +1.6% | | Total Non-Current Assets | 502,598 | 466,860 | +7.6% | | Total Current Assets | 35,828 | 63,095 | -43.2% | | Total Equity | 211,886 | 242,388 | -12.6% | | Total Liabilities | 326,540 | 287,567 | +13.5% | | Total Non-Current Liabilities | 130,849 | 94,953 | +37.8% | | Total Current Liabilities | 195,691 | 192,614 | +1.6% | - Property, plant and equipment increased to **HKD 248,508 thousand** (December 31, 2024: **HKD 219,341 thousand**), primarily due to additions to construction in progress[5](index=5&type=chunk) - Bank and cash balances decreased to **HKD 11,290 thousand** (December 31, 2024: **HKD 18,913 thousand**), reflecting the use of funds for operations and the construction of the BNCT center[5](index=5&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the Group's business, accounting policies, and financial performance, highlighting going concern uncertainties and mitigation efforts [1. General Information](index=6&type=section&id=1.%20General%20Information) The company is a GEM-listed entity with diverse healthcare businesses in Hong Kong and mainland China, including medical testing, immunotherapy, and BNCT services - The company's main businesses include medical laboratory testing, health checks, and insurance brokerage services in Hong Kong, as well as oncology immune cell therapy, health management, BNCT services, and sales of healthcare pharmaceutical products in mainland China[7](index=7&type=chunk) - The company is listed on GEM of The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) [2. Basis of Preparation and Accounting Policies](index=6&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial information is prepared under HKAS 34, with significant going concern uncertainties due to losses and current liabilities exceeding current assets, addressed by cost control and financing efforts - For the six months ended **June 30, 2025**, the Group recorded a loss of approximately **36,753 thousand HKD**, with current liabilities exceeding current assets by approximately **159,863 thousand HKD**, indicating significant uncertainty about its ability to continue as a going concern[11](index=11&type=chunk) - To alleviate liquidity pressure, the Group is implementing operational plans to control costs, optimize resource allocation, reduce staff costs, and actively seeking alternative financing, borrowings, and fundraising solutions (such as placing shares and issuing convertible bonds)[13](index=13&type=chunk) - The Group is exploring the realization of financial assets measured at fair value through other comprehensive income to support operations and growth[13](index=13&type=chunk) [3. Revenue](index=8&type=section&id=3.%20Revenue) The Group's revenue increased by **19.8%**, primarily driven by a substantial rise in insurance brokerage services, partially offset by a decline in medical laboratory testing and health check services Segment Revenue by Service Category | Service Category | 2025 (HKD thousands) | 2024 (HKD thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Medical Laboratory Testing and Health Check Services | 16,164 | 19,729 | -18.1% | | Insurance Brokerage Services | 22,640 | 12,255 | +84.7% | | Sales and Distribution of Healthcare-related and Pharmaceutical Products and Other Services | – | 437 | -100% | | Logistics Services | 68 | 28 | +142.9% | | **Total Revenue** | **38,872** | **32,449** | **+19.8%** | [4. Segment Information](index=8&type=section&id=4.%20Segment%20Information) The Group operates six segments, with significant growth in insurance brokerage and BNCT profitability, with capital expenditure focused on BNCT and medical/healthcare and immunotherapy segments remain in loss Segment Revenue and (Loss)/Profit **Segment Revenue (For the six months ended June 30):** | Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Medical Laboratory Testing and Healthcare-related Services | 16,164 | 19,729 | | Insurance Brokerage | 22,640 | 12,255 | | Pharmaceutical Products | – | 437 | | Other | 68 | 28 | | **Total** | **38,872** | **32,449** | **Segment (Loss)/Profit (For the six months ended June 30):** | Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Medical Laboratory Testing and Healthcare-related Services | (14,788) | (71,707) | | Immunotherapy | (13,118) | (25,206) | | Boron Neutron Capture Therapy | 8,776 | (3,147) | | Insurance Brokerage | 1,870 | (62) | | Pharmaceutical Products | (720) | (485) | | Other | (340) | (342) | | **Total** | **(18,320)** | **(100,949)** | - Total capital expenditure in **2025** amounted to **22,700 thousand HKD**, with **22,692 thousand HKD** allocated to Boron Neutron Capture Therapy[21](index=21&type=chunk) - Impairment loss on right-of-use assets in **2025** was **3,524 thousand HKD**[21](index=21&type=chunk) [5. Other Income and Gains/(Losses), Net](index=12&type=section&id=5.%20Other%20Income%20and%20Gains%2F%28Losses%29%2C%20Net) Net other income and gains for the period significantly turned from a loss in **2024** to a gain, primarily due to storm damage compensation and exchange gains Other Income and Gains/(Losses), Net | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Compensation Income | 13,695 | – | | Exchange Gains/(Losses), Net | 6,576 | (12,504) | | Loss on Derecognition of Property, Plant and Equipment | – | (15,901) | | **Total** | **21,728** | **(26,460)** | - Compensation income of **13,695 thousand HKD** relates to insurance claims for storm damage at a Hainan construction site in **2024**[23](index=23&type=chunk) [6. Finance Costs](index=12&type=section&id=6.%20Finance%20Costs) Finance costs substantially increased due to higher interest on convertible bonds, put option liabilities, and other borrowings Finance Costs Breakdown | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 523 | 814 | | Interest on Other Borrowings | 4,191 | 1,115 | | Interest on Loans from Controlling Shareholder | 1,291 | 205 | | Interest on Convertible Bonds and Put Option Liabilities | 6,294 | 2,158 | | Interest on Lease Liabilities | 237 | 394 | | **Total** | **12,536** | **4,686** | [7. Loss Before Tax](index=13&type=section&id=7.%20Loss%20Before%20Tax) Loss before tax significantly narrowed, driven by reduced research and development, staff costs, and inventory write-downs, partially offset by impairment loss on right-of-use assets Loss Before Tax Components | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Research and Development Costs | 5,965 | 17,593 | | Staff Costs (Salaries, Bonuses and Allowances) | 25,021 | 38,985 | | Write-down of Inventories | 194 | 5,089 | | Derecognition of Property, Plant and Equipment | – | 15,901 | | Impairment Loss on Right-of-Use Assets | 3,524 | – | [8. Income Tax Credit](index=13&type=section&id=8.%20Income%20Tax%20Credit) Income tax credit for the period was slightly lower than the prior year, primarily derived from deferred income tax Income Tax Credit Breakdown | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current Income Tax | (195) | (78) | | Deferred Income Tax | 601 | 605 | | **Total** | **406** | **527** | [9. Dividends](index=14&type=section&id=9.%20Dividends) The Board does not recommend any dividend payment for the current interim period, consistent with the prior year - The Board does not recommend the payment of any dividend for the period[27](index=27&type=chunk) [10. Loss Per Share](index=14&type=section&id=10.%20Loss%20Per%20Share) Basic and diluted loss per share attributable to owners of the Company significantly improved, reflecting a reduction in per-share losses Basic and Diluted Loss Per Share | Metric | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (0.033) | (0.083) | - The weighted average number of ordinary shares used for calculating basic and diluted loss per share increased from **963,231 thousand** in **2024** to **975,731 thousand** in **2025**[29](index=29&type=chunk) [11. Property, Plant and Equipment](index=14&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment) The primary addition to property, plant and equipment for the period was significant investment in construction in progress - Main addition was **22,692 thousand HKD** for construction in progress[30](index=30&type=chunk) [12. Goodwill](index=15&type=section&id=12.%20Goodwill) The carrying amount of goodwill increased, primarily influenced by exchange differences during the period Goodwill Carrying Amount | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Carrying Amount | 107,225 | 104,792 | | Exchange Differences | 3,331 | (2,389) | [13. Intangible Assets](index=15&type=section&id=13.%20Intangible%20Assets) The net carrying amount of intangible assets decreased, mainly due to amortisation expense, partially offset by exchange differences Intangible Assets Net Carrying Amount | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Carrying Amount at End of Period | 32,013 | 52,623 | | Amortisation Expense | (4,005) | (4,036) | | Exchange Differences | 1,074 | (985) | [14. Trade and Other Receivables, Deposits and Prepayments](index=16&type=section&id=14.%20Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) Net trade receivables increased, with a significant portion of deposits allocated to purchasing BNCT drugs from a Japanese pharmaceutical company Trade and Other Receivables, Deposits and Prepayments | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Trade Receivables | 7,988 | 7,033 | | Rental and Other Deposits | 56,799 | 51,822 | | Other Receivables | 8,246 | 14,012 | | Prepayments | 3,490 | 1,991 | | **Total** | **76,547** | **74,872** | - Rental and other deposits include **54,559 thousand HKD** (equivalent to **1,000,000,000 JPY**) as a deposit paid to a Japanese pharmaceutical company for Boron Neutron Capture Therapy drugs to be used at the Hainan BNCT Cancer Treatment Centre[32](index=32&type=chunk) [15. Trade Payables](index=17&type=section&id=15.%20Trade%20Payables) Total trade payables increased as of **June 30, 2025**, compared to **December 31, 2024** Trade Payables Ageing Analysis | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 4,440 | 4,883 | | 91 to 180 days | 1,278 | 1,549 | | 181 to 365 days | 1,610 | 166 | | Over 365 days | 770 | 755 | | **Total** | **8,098** | **7,353** | [16. Convertible Bonds and Derivative Financial Liabilities](index=17&type=section&id=16.%20Convertible%20Bonds%20and%20Derivative%20Financial%20Liabilities) The Group's convertible bonds and related derivative financial liabilities, including written put option liabilities, saw increases in their fair values - In **December 2024**, convertible bonds with a principal amount of **6,000,000 USD** (approximately **47,100 thousand HKD**) were issued at an annual interest rate of **8.25%** and an initial conversion price of **1.20 HKD** per share[35](index=35&type=chunk) Convertible Bonds and Derivative Financial Liabilities | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Convertible Bonds - Liability Component | 42,919 | 41,635 | | Convertible Bonds - Fair Value of Derivative Component | 11,317 | 6,002 | | Written Put Option Liabilities | 45,065 | 40,480 | - The effective interest rate applied to the convertible bonds' liability component was **15.0%** (**2024**: **8.62%**)[36](index=36&type=chunk) [17. Borrowings](index=19&type=section&id=17.%20Borrowings) Total borrowings increased, primarily for working capital and BNCT center development, secured by various assets, with the Group complying with all financial covenants Total Borrowings and Analysis **Total Borrowings (HKD thousands):** | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Borrowings | 33,981 | 25,981 | | Other Borrowings | 99,041 | 87,940 | | Loans from Controlling Shareholder | 28,074 | 24,772 | | **Total** | **161,096** | **138,693** | **Borrowings Analysis (HKD thousands):** | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Portion | 139,179 | 138,693 | | Non-Current Portion | 21,917 | – | - Borrowing interest rates range from **LPR minus 0.45% or 3.45%–3.85%** for bank borrowings, **6%–18%** for other borrowings, and **10%** for controlling shareholder loans[39](index=39&type=chunk) - Borrowings are primarily secured by construction in progress (**233,866 thousand HKD**), China land use rights (**11,799 thousand HKD**), property, plant and equipment (**10,743 thousand HKD**), other receivables (**1,864 thousand HKD**), intangible assets (**30,689 thousand HKD**), and a **47%** equity interest in a subsidiary[40](index=40&type=chunk)[41](index=41&type=chunk) - The Group has complied with the financial covenants of its borrowing facilities[42](index=42&type=chunk) [18. Contingent Liabilities](index=20&type=section&id=18.%20Contingent%20Liabilities) The Group reported no material contingent liabilities as of **June 30, 2025** - The Group had no material contingent liabilities[43](index=43&type=chunk) [19. Related Party Transactions](index=20&type=section&id=19.%20Related%20Party%20Transactions) Related party transactions for the period primarily included interest expenses paid to the controlling shareholder and key management personnel remuneration Related Party Transactions Summary | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest Expenses Paid to Controlling Shareholder | 1,291 | 205 | | Key Management Personnel Remuneration | 2,589 | 3,615 | [20. Events After Reporting Period](index=21&type=section&id=20.%20Events%20After%20Reporting%20Period) Post-reporting period events include a strategic financing agreement where BGI-Songhe will provide a loan to Pengbo (Hainan), convertible into Dynamic Healthcare shares - BGI-Songhe will provide a **30 million RMB** loan to Pengbo (Hainan), which will be converted into shares of Dynamic Healthcare Holdings Limited[46](index=46&type=chunk) - BGI-Songhe will hold up to **6.25%** of Dynamic Healthcare's enlarged issued share capital[46](index=46&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) The financial review highlights a significant reduction in net loss, improved gross margin, and reduced operating expenses, despite increased finance costs - Revenue for the period was approximately **38.9 million HKD**, an increase of **19.8%** year-on-year, primarily driven by growth in the insurance brokerage services segment, partially offset by a decline in the medical laboratory testing and health check services segment[48](index=48&type=chunk) - Gross profit turned from a loss of approximately **3.1 million HKD** in the prior year to a profit of approximately **2.5 million HKD**, with gross margin improving to **6.5%**, mainly due to a significant reduction in inventory write-downs[49](index=49&type=chunk) - Selling and distribution expenses decreased by **44.6%** to **3.6 million HKD**, administrative expenses decreased by **52.0%** to **34.0 million HKD**, and research and development costs decreased by **66.1%** to **6.0 million HKD**, primarily due to reduced staff costs, fewer one-off legal claims, and lower late-stage clinical trial expenses[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - Finance costs increased to **12.5 million HKD**, mainly due to additional bank and other borrowings for working capital and the construction of the BNCT Cancer Treatment Centre[53](index=53&type=chunk) - Net loss attributable to owners of the Company decreased by **60.0%** to **32.0 million HKD**, primarily due to cost control measures, improved gross margin, reduced administrative expenses, and **13.7 million HKD** in insurance compensation income[54](index=54&type=chunk) [Business Review](index=24&type=section&id=Business%20Review) The business review covers strategic financing, progress on the BNCT center, expanded drug cooperation, new insurance products, and advancements in CAR-T clinical trials - Pengbo (Hainan) secured **30 million RMB** in strategic financing from BGI-Songhe to strengthen its development foundation[55](index=55&type=chunk) - The BNCT Cancer Treatment Centre is under construction in Hainan, targeting opening and operation by **end of 2025**, having obtained medical institution practice license and medical device import approval[57](index=57&type=chunk) - Signed an MOU with STELLA PHARMA CORPORATION to expand cooperation for BNCT drug STEBORONINE® in China, including exclusive manufacturing and sales rights, with plans for localized production[58](index=58&type=chunk) - Collaborated with AXA Insurance (Bermuda) Limited to develop comprehensive medical insurance products covering BNCT cancer treatment costs and related services[59](index=59&type=chunk) - Shanghai Longyao's LY007 cell injection (China's first clinically approved CD20-targeted CAR-T therapy) has completed Phase I clinical trials, with Phase II trials planned to commence by **end of 2025**[61](index=61&type=chunk) - Phase I clinical results for LY007 cell injection have been presented at international conferences like ASCO and ASH, and invited for presentation at ICML and EHA[64](index=64&type=chunk) [Outlook](index=27&type=section&id=Outlook) The Group's outlook focuses on laboratory upgrades, expanding healthcare services, commercializing CAR-T products, operationalizing the BNCT center, and developing integrated treatment models and insurance products - The Group has upgraded its laboratory with Hong Kong's first customized virtual biochemistry immunoassay automation system, collaborating with institutions for contract research services and public health screening/vaccination programs[66](index=66&type=chunk) - Demand for health checks and related medical services is expected to continue growing due to increased public health awareness, an aging population, and rising demand for private healthcare services[67](index=67&type=chunk) - The Group aims to advance the commercialization of its CAR-T product LY007 cell injection, pushing for domestic Phase II clinical trials and commercial partnerships, including international patenting, with Phase II trials expected to start by **end of 2025**[68](index=68&type=chunk) - The Group is committed to ensuring the BNCT Cancer Treatment Centre is operational by **end of 2025**, planning a China-wide treatment network, developing franchised hospitals, and generating new revenue from equipment sales and related services[69](index=69&type=chunk) - Deepen industry-academic research integration with leading hospitals to explore a new "diagnosis-treatment integrated" BNCT model[70](index=70&type=chunk) - Strengthen cooperation with insurance companies to develop inclusive BNCT medical insurance products and establish patient referral partnerships with domestic hospitals to enhance accessibility and reduce financial burden[71](index=71&type=chunk) [Events After Reporting Period](index=29&type=section&id=Events%20After%20Reporting%20Period) Details of events after the reporting period are set out in Note 20 to the unaudited condensed consolidated financial statements - Details of events after the reporting period are set out in Note 20 to the unaudited condensed consolidated financial statements[73](index=73&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=30&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group's liquidity shows decreased cash balances and increased borrowings, with capital commitments for property, plant and equipment, and secured loans - Cash and bank balances decreased to **11,290 thousand HKD** (December 31, 2024: **18,913 thousand HKD**), primarily used for operating activities and the construction of the BNCT Cancer Treatment Centre[75](index=75&type=chunk) - Outstanding convertible bonds amounted to approximately **42,919 thousand HKD**, with an annual interest rate of **8.25%**, maturing on **December 27, 2026**[75](index=75&type=chunk) - Total borrowings increased to **161,096 thousand HKD** (December 31, 2024: **138,693 thousand HKD**), mainly due to additional borrowings for working capital and the development of the BNCT Cancer Treatment Centre[76](index=76&type=chunk) Financial Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt-to-Equity Ratio | 60.6% | 54.3% | | Current Ratio | **0.18 times** | **0.33 times** | - Capital commitments for property, plant and equipment increased to **153,210 thousand HKD** (December 31, 2024: **122,560 thousand HKD**)[79](index=79&type=chunk) - Borrowings are secured by Pengbo (Hainan)'s land use rights, construction in progress, property, plant and equipment, other receivables, intangible assets, and equity interest in a subsidiary[80](index=80&type=chunk)[81](index=81&type=chunk) - The Group has no material contingent liabilities and uses hedging instruments to manage foreign exchange and interest rate risks[82](index=82&type=chunk)[83](index=83&type=chunk) [Material Investments Held and Performance](index=33&type=section&id=Material%20Investments%20Held%20and%20Performance) The Group holds significant investments in precision cancer diagnostics companies, with strategic collaborations expected to generate synergies with its medical testing services - The Group holds investments in Pillar Biosciences, Inc and Zhengu Diagnostics Holdings Limited (precision cancer diagnostics companies) with a fair value of approximately **43,703 thousand HKD**, representing **8.12%** of total assets[84](index=84&type=chunk) - Pillar Biosciences, Inc recorded an unaudited loss of approximately **17,000,000 USD** in **2024**, and the Group received no dividend income from Pillar during the period[85](index=85&type=chunk) - Strategic cooperation with Pillar led to the establishment of Asia Molecular Diagnostics Laboratory Limited in Hong Kong, offering next-generation sequencing precision cancer diagnostic services, expected to generate synergies with the Group's medical testing services[85](index=85&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Associates](index=34&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) The Group did not engage in any material acquisitions or disposals of subsidiaries and associates during the reporting period - The Group did not undertake any material acquisitions or disposals of subsidiaries and associates during the period[86](index=86&type=chunk) [Employees and Remuneration Policy](index=34&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's employee count slightly decreased, with remuneration policies based on performance, experience, and market rates, including various benefits and incentive schemes - As of **June 30, 2025**, the Group employed **133** full-time employees (**June 30, 2024**: **142**)[87](index=87&type=chunk) - Remuneration is determined based on performance, experience, and market rates, including discretionary bonuses, MPF scheme, retirement benefit scheme contributions, insurance and medical, training, and participation in share option and share award schemes[87](index=87&type=chunk) [Share Option Scheme](index=34&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme in **2024**, but no options were granted during the current reporting period - The company adopted a share option scheme on **June 6, 2024**, but no share options were granted during the period[88](index=88&type=chunk) [Share Award Scheme](index=34&type=section&id=Share%20Award%20Scheme) The company adopted a share award scheme in **2021**, but no shares were subscribed for, received, purchased, or granted under the scheme during the current period - The company adopted a share award scheme on **August 18, 2021**, but the trustee neither subscribed for, received, nor purchased any company shares, nor did the company grant any shares under the scheme during the period[89](index=89&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=35&

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 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。 SHANDONG GOLD MINING CO., LTD. 山東黃金礦業股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：1787） 截 至2025年6月30日止六個月 中期業績公告 2025年中期業績摘要註 註： 一、財務報告（按 照 企 業 會 計 準 則 編 製 的 財 務 報 表） – 1 – 本 公 告 中，除 內 容 特 別 指 明 外，貨 幣 皆 為 人 民 幣。 • 報 告 期 內，本 集 團 實 現 營 業 收 入 人 民 幣56,765.90百 萬 元，同 比 增 長 約 24.01%； • 報 告 期 內，本 集 團 實 現 稅 前 利 潤 人 民 幣5,483.38百 萬 元，同 比 增 長 約 95.23%； • 報 告 期 內，本 集 團 歸 屬 於 母 ...

Company Information and Financial Highlights This section provides an overview of the company and its key interim financial performance highlights [Company Overview](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E5%86%B5) Yan Tat Group (Stock Code: 1480), a Cayman Islands-incorporated company listed on the HKEX Main Board, presents its unaudited interim results for the six months ended June 30, 2025 - Yan Tat Group Holdings Limited (Stock Code: 1480) is a company incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[2](index=2&type=chunk) - This report discloses the unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Interim Results Highlights](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E6%91%98%E8%A6%81) For H1 2025, Yan Tat Group's revenue decreased by **15.9%** to **HK$263,526 thousand**, profit before tax fell **60.3%** to **HK$15,604 thousand**, and EPS declined **56.9%** to **5.9 HK cents** Interim Results Highlights for the Six Months Ended June 30, 2025 | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 263,526 | 313,354 | (15.9) | | Profit before tax | 15,604 | 39,259 | (60.3) | | Profit attributable to owners of the parent | 14,198 | 32,803 | (56.7) | | Basic and diluted earnings per share (HK cents) | 5.9 | 13.7 | (56.9) | Condensed Interim Consolidated Financial Statements This section presents the Group's condensed interim consolidated statements of profit or loss, comprehensive income, and financial position [Condensed Interim Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) For H1 2025, the Group's revenue was **HK$263,526 thousand**, gross profit **HK$60,798 thousand**, and profit for the period **HK$12,908 thousand**, with **HK$14,198 thousand** attributable to owners of the parent Key Data from Condensed Interim Consolidated Statement of Profit or Loss | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 263,526 | 313,354 | | Cost of sales | (202,728) | (235,835) | | Gross profit | 60,798 | 77,519 | | Other income and gains | 12,557 | 13,159 | | Selling and distribution expenses | (9,885) | (9,733) | | General and administrative expenses | (44,442) | (39,951) | | Other expenses | (2,132) | (1,082) | | Finance costs | (1,292) | (653) | | Profit before tax | 15,604 | 39,259 | | Income tax expense | (2,696) | (6,456) | | Profit for the period | 12,908 | 32,803 | | Profit attributable to owners of the parent | 14,198 | 32,803 | | Non-controlling interests | (1,290) | – | | Basic and diluted earnings per share (HK cents) | 5.9 | 13.7 | [Condensed Interim Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For H1 2025, the Group's profit was **HK$12,908 thousand**, with net other comprehensive income of **HK$9,256 thousand** mainly from foreign currency translation, leading to total comprehensive income of **HK$22,164 thousand** Key Data from Condensed Interim Consolidated Statement of Comprehensive Income | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the period | 12,908 | 32,803 | | Other comprehensive income/(loss) | | | | - Exchange differences on translation of foreign operations | 9,375 | (3,667) | | - Fair value changes of financial assets at fair value through other comprehensive income | (44) | (119) | | Other comprehensive income/(loss) for the period | 9,256 | (3,711) | | Total comprehensive income for the period | 22,164 | 29,092 | | Total comprehensive income attributable to owners of the parent | 23,128 | 29,092 | | Total comprehensive income attributable to non-controlling interests | (964) | – | [Condensed Interim Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group reported total non-current assets of **HK$434,866 thousand**, total current assets of **HK$819,788 thousand**, and total equity of **HK$745,229 thousand** Key Data from Condensed Interim Consolidated Statement of Financial Position | Indicator | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 273,290 | 276,700 | | Investment properties | 22,062 | 20,276 | | Right-of-use assets | 5,788 | 4,859 | | Goodwill | 1,449 | – | | Total non-current assets | 434,866 | 328,844 | | **Current assets** | | | | Inventories | 68,356 | 63,927 | | Trade and bills receivables | 163,426 | 158,975 | | Cash and cash equivalents | 555,873 | 533,295 | | Total current assets | 819,788 | 794,925 | | **Current liabilities** | | | | Trade payables | 82,762 | 79,295 | | Interest-bearing bank borrowings | 26,996 | 62,024 | | Total current liabilities | 260,379 | 208,283 | | **Non-current liabilities** | | | | Interest-bearing bank borrowings | 32,397 | 100,997 | | Total non-current liabilities | 170,257 | 239,165 | | **Equity** | | | | Equity attributable to owners of the parent | 745,229 | 753,957 | | Non-controlling interests | – | 1,153 | | Total equity | 745,229 | 755,110 | Notes to the Financial Statements This section provides detailed explanations and disclosures on the Group's financial statements, accounting policies, and operational specifics [Company Information and Principal Activities](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99%E4%B8%8E%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) Yan Tat Group, incorporated in the Cayman Islands on July 8, 2014, primarily manufactures and sells PCBs, with its shares listed on the HKEX Main Board - The Company was incorporated as an exempted company in the Cayman Islands on July 8, 2014[8](index=8&type=chunk) - During the period, the Group was principally engaged in the manufacture and sale of printed circuit boards (PCBs)[9](index=9&type=chunk) - The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), with Million Pearl Holdings Ltd. as its ultimate holding company[9](index=9&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 condensed interim consolidated financial information is prepared under HKAS 34, consistent with prior annual statements, with new HKFRS amendments having no material impact - The condensed interim consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 'Interim Financial Reporting'[10](index=10&type=chunk) - The accounting policies adopted in the preparation of the condensed interim consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of revised Hong Kong Financial Reporting Standards ("HKFRSs") for the first time in the current period[11](index=11&type=chunk) - HKAS 21 (Amendments) on Lack of Exchangeability has no impact on the condensed interim consolidated financial information[12](index=12&type=chunk) [Operating Segments and Geographical Information](index=7&type=section&id=%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E4%B8%8E%E5%9C%B0%E5%8C%BA%E4%BF%A1%E6%81%AF) The Group, focused on PCB manufacturing, reports **HK$107,599 thousand** revenue from Mainland China and **HK$66,314 thousand** from Asia (ex-China/HK), with non-current assets concentrated in Mainland China and Malaysia - The Group was principally engaged in the manufacture and sale of printed circuit boards during the period, with no separate operating segment financial information to be presented[13](index=13&type=chunk) Revenue from External Customers (by Geographical Location) | Region | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Mainland China | 107,599 | 124,409 | | Hong Kong | 4,119 | 1,945 | | Europe | 51,249 | 58,656 | | Asia (excluding Mainland China and Hong Kong) | 66,314 | 98,557 | | North America | 34,134 | 29,542 | | Africa | 77 | 154 | | Oceania | 34 | 91 | | **Total** | **263,526** | **313,354** | Non-current Assets (by Geographical Location) | Region | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 2,723 | 3,895 | | Mainland China | 300,759 | 300,655 | | Malaysia | 114,147 | – | | **Total** | **417,629** | **304,550** | [Major Customers Information](index=8&type=section&id=%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B7%E4%BF%A1%E6%81%AF) As of June 30, 2025, Customer B became the largest contributor with **HK$49,414 thousand** in revenue, while Customer A's contribution decreased, and Customer C emerged as a new major contributor Revenue Contribution from Major Customers | Customer | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Customer A | 47,342 | 69,915 | | Customer B | 49,414 | 35,155 | | Customer C | 41,211 | N/A | [Revenue, Other Income and Gains Analysis](index=8&type=section&id=%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E5%88%86%E6%9E%90) For H1 2025, sales revenue decreased **15.9%** to **HK$263,526 thousand**, with total other income and gains at **HK$12,557 thousand**, mainly from bank interest and recycling Revenue, Other Income and Gains Analysis | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue from sales of goods under customer contracts | 263,526 | 313,354 | | Bank interest income | 8,348 | 8,643 | | Rental income | 229 | 239 | | Government grants | 1,108 | 986 | | Recycling-related income | 2,624 | 1,643 | | Net exchange gains | 248 | 1,648 | | **Total** | **276,083** | **326,513** | [Components of Profit Before Tax](index=9&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 for H1 2025 was impacted by **HK$202,728 thousand** cost of sales, **HK$13,258 thousand** depreciation, **HK$528 thousand** investment property fair value loss, and a **HK$860 thousand** inventory write-down reversal Items Deducted From/Credited to Profit Before Tax | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 202,728 | 235,835 | | Depreciation of property, plant and equipment | 13,258 | 14,513 | | Depreciation of right-of-use assets | 962 | 977 | | Write-down/(reversal of write-down) of inventories to net realisable value | (860) | 280 | | Impairment of trade receivables | 1,025 | 120 | | Fair value loss on investment properties | 528 | 2,106 | | Write-off of property, plant and equipment items | 232 | 25 | | Net exchange differences | (1,648) | (248) | [Finance Costs](index=9&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) For H1 2025, finance costs increased **85.7%** to **HK$1,292 thousand**, mainly due to **HK$1,234 thousand** in bank loan interest reflecting higher borrowings Components of Finance Costs | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank loans | 1,234 | 610 | | Lease liabilities | 58 | 43 | | **Total** | **1,292** | **653** | [Income Tax](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E) Total income tax expense for H1 2025 significantly decreased to **HK$2,696 thousand**, with Hong Kong profits tax at **16.5%** and Mainland China corporate income tax at **25%** (or **15%** for high-tech subsidiaries) - Hong Kong profits tax is provided at a rate of **16.5%** (8.25% for the first **HK$2,000,000**)[21](index=21&type=chunk) - The standard corporate income tax rate in Mainland China is **25%**, while subsidiaries qualifying as high-tech enterprises are taxed at **15%**[22](index=22&type=chunk) Components of Income Tax Expense | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Hong Kong tax for the period | 1,107 | 2,154 | | Current Mainland China tax for the period | 1,187 | 2,671 | | Underprovision in prior years | – | 883 | | Deferred | 402 | 748 | | **Total tax expense for the period** | **2,696** | **6,456** | [Earnings Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic EPS for H1 2025 was **5.9 HK cents**, a decrease from **13.7 HK cents** in the prior period, with no dilution adjustments as no potentially dilutive shares were in issue - Basic earnings per share attributable to ordinary equity holders of the parent for the six months ended June 30, 2025 was **5.9 HK cents**, compared to **13.7 HK cents** for the prior period[24](index=24&type=chunk) - Earnings per share is calculated based on the profit for the period attributable to ordinary equity holders of the parent of **HK$14,198,000** and the weighted average number of ordinary shares of the parent in issue during the period of **240,000,000** shares[24](index=24&type=chunk) - No adjustment has been made to the basic earnings per share amounts presented as the Group had no potentially dilutive ordinary shares in issue during the period[24](index=24&type=chunk) [Trade and Bills Receivables](index=11&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E6%94%B6%E7%A5%A8%E6%8D%AE) As of June 30, 2025, net trade and bills receivables increased to **HK$163,426 thousand**, with credit terms of **one to four months** and strict monitoring of overdue balances Trade and Bills Receivables | Item | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 144,746 | 151,825 | | Bills receivables | 17,079 | 14,615 | | Impairment | (2,850) | (3,014) | | **Net** | **158,975** | **163,426** | - The Group generally grants credit terms of **one to four months** from the invoice date to its customers and maintains strict control over outstanding receivables[25](index=25&type=chunk) Aging Analysis of Trade and Bills Receivables | Aging | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 64,506 | 66,727 | | 1 to 2 months | 41,593 | 36,573 | | 2 to 3 months | 37,380 | 29,394 | | Over 3 months | 19,947 | 26,281 | | **Total** | **163,426** | **158,975** | [Trade Payables](index=12&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade payables decreased to **HK$79,295 thousand**, being unsecured, interest-free, and typically settled within **three months** Aging Analysis of Trade Payables | Aging | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 3 months | 58,925 | 65,883 | | 3 to 6 months | 10,590 | 9,453 | | Over 6 months | 9,780 | 7,426 | | **Total** | **79,295** | **82,762** | - Trade payables are unsecured, interest-free and are normally settled within **three months** from the invoice date[27](index=27&type=chunk) [Dividends](index=12&type=section&id=%E8%82%A1%E6%81%AF) The Group declared a **HK$14,400 thousand** final dividend for 2024 (**6 HK cents** per share), but the Board recommends no interim dividend for H1 2025 - A final dividend of **HK$14,400 thousand** (HK**6 cents** per ordinary share) for 2024 was declared during the period[29](index=29&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[29](index=29&type=chunk) Management Discussion and Analysis This section provides an in-depth review of the Group's business operations, financial performance, and future outlook [Business Review and Development](index=13&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5%E5%8F%8A%E5%8F%91%E5%B1%95) Yan Tat Group, an OEM PCB supplier with over 35 years of experience, focuses on high-quality PCBs for diverse sectors, actively addressing industry challenges through automation and strategic expansion into Malaysia to enhance supply chain resilience and market reach - The Group is a Printed Circuit Board ("PCB") original equipment manufacturer ("OEM") supplier, focusing on manufacturing high-quality PCBs primarily for automotive, communication equipment, medical equipment, industrial automation equipment, and consumer electronics[30](index=30&type=chunk) - The Group has established a solid foundation and strong customer relationships, providing direct and indirect services to OEM customers across Asia, Europe, Africa, North America, South America, and Oceania[31](index=31&type=chunk) - The Group strictly adheres to multiple international quality standards and systems, having obtained various certifications including **ISO9001**, **ISO14001**, **IATF16949**, **AS9100**, and **ISO 13485**[32](index=32&type=chunk) - To address challenges such as cost pressures, environmental measures, and rising labor costs in the PCB industry, the Group has accelerated production process automation, promoted the flow of production information, and implemented measures to optimize costs and enhance quality[33](index=33&type=chunk)[34](index=34&type=chunk) - The Group's long-term plan is to develop another production base outside Shenzhen Pingshan, gradually relocating production to the new base thereafter[35](index=35&type=chunk) - The Group completed the acquisition of a controlling stake in Denshi Maruwa, Malaysia, and entered into a property acquisition agreement to establish a more resilient and flexible supply chain, leveraging Malaysia's strategic geographical location to explore the ASEAN market[36](index=36&type=chunk) [Financial Review](index=16&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B5) For H1 2025, turnover decreased **15.9%** to **HK$263.5 million**, gross profit margin fell to **23.1%**, and profit attributable to owners of the parent declined **56.7%** to **HK$14.2 million**, while bank borrowings increased to **HK$163.0 million** for Malaysian investments, and capital commitments rose to **HK$71.5 million** Financial Performance Overview | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Turnover | 263,526 | 313,354 | | Gross profit | 60,798 | 77,519 | | EBITDA | 24,038 | 45,489 | | Profit attributable to owners of the parent | 14,198 | 32,803 | - Turnover decreased by **15.9%**, primarily due to a decline in sales order volume and average selling prices caused by global economic slowdown and intense price competition in the PCB market[37](index=37&type=chunk) - Gross profit margin decreased by approximately **6.5%** to **23.1%**, mainly due to rising raw material costs and other production costs[38](index=38&type=chunk) - Total operating expenses increased by **9.3%** to **HK$54.3 million**, primarily driven by an increase in general and administrative expenses[38](index=38&type=chunk) - Other income and gains decreased by **4.5%** to **HK$12.6 million**, mainly due to reduced exchange gains[39](index=39&type=chunk) - Selling and distribution expenses increased by **2.1%** to **HK$9.9 million**, primarily due to higher consultancy fees[40](index=40&type=chunk) - General and administrative expenses increased by **11.0%** to **HK$44.4 million**, mainly due to higher legal and professional fees, research and development expenses, and staff wages[41](index=41&type=chunk) - Other expenses increased by **90.9%** to **HK$2.1 million**, primarily due to an approximate **HK$1.6 million** increase in fair value loss on investment properties[42](index=42&type=chunk) - Finance costs increased by **85.7%** to **HK$1.3 million**, mainly due to higher bank loan interest resulting from increased bank borrowings[43](index=43&type=chunk) - Profit attributable to owners of the parent decreased by **56.7%** to **HK$14.2 million**, primarily due to the net effect of reduced gross profit, increased selling and distribution expenses, higher general and administrative expenses, and lower income tax expense[44](index=44&type=chunk) - The net book value of property, plant and equipment decreased by **HK$3.4 million** to **HK$273.3 million**, mainly due to depreciation offsetting some additions and exchange adjustment gains[45](index=45&type=chunk) - Trade and bills receivables increased by **HK$4.5 million**, primarily due to higher sales in the second quarter of 2025[46](index=46&type=chunk) - Total bank borrowings increased by **HK$103.6 million** to **HK$163.0 million**, primarily for capital investments in Malaysia[47](index=47&type=chunk) Liquidity and Capital Structure | Indicator | As at June 30, 2025 | As at December 31, 2024 | | :--- | :--- | :--- | | Total current assets | HK$819.8 million | HK$794.9 million | | Total current liabilities | HK$260.4 million | HK$208.3 million | | Current ratio | 3.1 | 3.8 | | Gearing ratio | 0.22 | 0.08 | - The Group is exposed to foreign currency risk but did not engage in any derivative activities or hedge foreign currency risk for the six months ended June 30, 2025[51](index=51&type=chunk) - Capital commitments significantly increased to **HK$71.5 million** (December 31, 2024: HK$27.7 million), primarily due to new investments and equipment purchases in Malaysia[53](index=53&type=chunk) - As of June 30, 2025, the Group had **870 employees**, with total employee benefit expenses of approximately **HK$49.3 million**, an increase from the prior period[54](index=54&type=chunk) - The Group completed the acquisition of **60.39%** of the issued share capital of Denshi Maruwa, Malaysia, during the period[60](index=60&type=chunk) - As of June 30, 2025, certain assets of the Group were pledged as collateral for bank financing, including investment properties, pledged deposits, leasehold land and buildings, and right-of-use assets for leasehold land in Mainland China[62](index=62&type=chunk) - The Group had no significant contingent liabilities as of June 30, 2025[63](index=63&type=chunk) [Prospects](index=23&type=section&id=%E5%89%8D%E6%99%AF%E5%B1%95%E6%9C%9B) For 2025, geopolitical instability, high energy costs, inflation, and exchange rate volatility are expected, yet PCB demand remains strong, with the Group leveraging its diversified markets and flexible business model to adapt strategies - The global landscape in 2025 is expected to remain subject to significant geopolitical instability, leading to high energy costs, persistent inflationary pressures, and exchange rate volatility[64](index=64&type=chunk) - Despite macroeconomic headwinds, PCB demand remains strong, particularly from the telecommunications and automotive electronics sectors, with key raw material costs stabilizing[64](index=64&type=chunk) - Benefiting from diversified markets and industry segments, a broad and high-quality customer base, and a flexible business model, the Group will closely monitor external developments and adjust its strategies in a timely manner[64](index=64&type=chunk) Events After the Reporting Period This section details significant events occurring after the reporting period, including a major property acquisition in Malaysia - On August 1, 2025, the Group completed the acquisition of a parcel of land and buildings thereon in Selangor, Malaysia, for a total consideration of **MYR43,750,000** (equivalent to approximately **HK$76,562,500**)[65](index=65&type=chunk) - Upon completion of the property acquisition, the Group became the beneficial owner of the property, holding all rights, title, and interests therein[65](index=65&type=chunk) Corporate Governance and Other Information This section covers the Company's corporate governance code compliance, directors' securities trading standards, audit committee and auditor reviews, dividend recommendations, and report publication [Compliance with Corporate Governance Code](index=24&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99%E9%81%B5%E5%AE%88%E6%83%85%E5%86%B5) For H1 2025, the Company confirmed full compliance with all code provisions of the Corporate Governance Code in Appendix C1 to the Listing Rules - The Company confirms that it has complied with all the code provisions in the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the six months ended June 30, 2025[68](index=68&type=chunk) [Standard Code for Securities Transactions by Directors](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The Company adopted the Standard Code for directors' securities transactions, with all Directors confirming compliance for the six months ended June 30, 2025 - The Company has adopted the Standard Code as its code of conduct for securities transactions[69](index=69&type=chunk) - Following specific enquiries made to all Directors, all Directors confirmed that they have complied with the required dealing standards set out in the Standard Code for the six months ended June 30, 2025[69](index=69&type=chunk) [Audit Committee](index=24&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee, composed of three independent non-executive directors, reviewed and approved the Group's unaudited condensed interim consolidated financial statements for H1 2025, confirming compliance and proper disclosures - The Audit Committee comprises three independent non-executive Directors, Mr. Yau Wing Yiu (Chairman), Mr. Lau Shun Chuen, and Mr. Chung Yuk Ming[70](index=70&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed interim consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that such statements were prepared in compliance with applicable accounting standards, rules, and regulations, and that appropriate disclosures have been duly made[70](index=70&type=chunk) [Auditor's Review](index=24&type=section&id=%E6%A0%B8%E6%95%B0%E5%B8%88%E5%AE%A1%E9%98%85) Ernst & Young, the Company's auditor, reviewed the unaudited consolidated interim results for H1 2025 in accordance with HKSAE 2410 - The Company's auditor, Ernst & Young, has reviewed the unaudited consolidated interim results for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[71](index=71&type=chunk) [Interim Dividend Recommendation](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF%E5%BB%BA%E8%AE%AE) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[72](index=72&type=chunk) [Publication of Interim Results and Report](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A%E6%8A%A5%E5%91%8A%E5%88%8A%E5%8F%91) The interim results announcement is published on the HKEX and Company websites, with the full interim report for H1 2025 to follow - The interim results announcement has been published on the Stock Exchange's website (www.hkexnews.hk) and the Company's website (www.yantat.com)[73](index=73&type=chunk) - The Company's interim report for the six months ended June 30, 2025, containing all information required by Appendix D2 to the Listing Rules, will be published on the aforementioned websites in due course[73](index=73&type=chunk)

[Financial Summary](index=1&type=section&id=I.%20%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section provides an overview of the company's financial performance, highlighting key figures such as revenue, loss for the period, and adjusted non-IFRS loss [Overview of Financial Performance](index=1&type=section&id=1.1%20%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%A6%82%E8%A7%88) During the reporting period, the company recorded its first revenue of **RMB 13.4 million**, with a loss for the period expanding to **RMB 170.3 million**, but adjusted non-IFRS loss slightly narrowed year-on-year due to revenue growth and improved operational efficiency Financial Performance Overview | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 13,426 | – | – | | Other Income and Gains | 12,144 | 16,950 | (28.35%) | | Loss for the Period | (170,289) | (105,765) | 61.01% | | Adjusted Non-IFRS Loss for the Period | (91,756) | (94,159) | (2.55%) | - Adjusted non-IFRS loss for the period decreased by **RMB 2.4 million** year-on-year, primarily due to revenue growth and continuous improvements in management operational efficiency and cost control[4](index=4&type=chunk) [Business Overview](index=2&type=section&id=II.%20%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88) This section details the company's overall business progress, core product pipeline developments, R&D and intellectual property, manufacturing capabilities, commercialization strategy, and future development plans [Overall Business Progress](index=2&type=section&id=2.1%20%E6%95%B4%E4%BD%93%E4%B8%9A%E5%8B%A7%E8%BF%9B) In the first half of 2025, the company made significant progress in interventional structural heart disease treatment, diversifying its product portfolio with great potential and actively expanding into international markets to lay a foundation for future high growth - The product pipeline achieved significant progress in transcatheter tricuspid, aortic, and mitral valve disease interventions, forming a diversified, high-potential product portfolio[5](index=5&type=chunk) - The company continues to expand its international business presence, enhancing product influence and clinical application scale, solidifying the foundation for long-term high growth[5](index=5&type=chunk) [Core Product Pipeline Progress](index=2&type=section&id=2.2%20%E6%A0%B8%E5%BF%83%E4%BA%A7%E5%93%81%E7%BA%BF%E8%BF%9B%E5%B1%95) The company's core products, LuX-Valve Plus, Ken-Valve, and JensClip, achieved significant milestones in global clinical trials and registration, with Ken-Valve commercialized in China and JensClip submitted for NMPA registration, establishing a multi-product pipeline [Transcatheter Tricuspid Valve Replacement System (TTVR System) LuX-Valve Plus](index=2&type=section&id=2.2.1%20%E7%BB%8F%E5%AF%BC%E7%AE%A1%E4%B8%89%E5%B0%96%E7%93%A3%E5%8F%8D%E6%B5%81%E4%BB%8B%E5%85%A5%E7%BD%AE%E6%8D%A2%E7%B3%BB%E7%BB%9F%20(TTVR%20System)%20LuX-Valve%20Plus) LuX-Valve Plus achieved significant clinical and regulatory progress in China, Europe, and the US, with China's RCT trial completing enrollment and submitting NMPA registration, excellent 30-day follow-up results from Europe's TRINITY study, and US EFS study completing enrollment with FDA IDE approval and CMS reimbursement - China's NMPA registration clinical trial is in the long-term follow-up phase, with all RCT subjects enrolled, and the NMPA registration review application submitted and accepted[6](index=6&type=chunk)[7](index=7&type=chunk)[42](index=42&type=chunk) - The European TRINITY study completed **6-month** follow-up and entered the registration review phase, with **30-day** follow-up results presented at EuroPCR 2025, showing good safety and efficacy, especially for patients with large annuli[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - The US FDA IDE early feasibility clinical study completed enrollment of all subjects and received CMS medical insurance reimbursement, actively advancing critical clinical study approval[6](index=6&type=chunk)[10](index=10&type=chunk)[50](index=50&type=chunk) - The LuX-Valve series products have been implanted in over **800 cases** globally, with the longest follow-up record exceeding **6 years**[51](index=51&type=chunk) [Transcatheter Aortic Valve Replacement System (TAVR System) Ken-Valve](index=3&type=section&id=2.2.2%20%E7%BB%8F%E5%AF%BC%E7%AE%A1%E4%B8%BB%E5%8A%A8%E8%84%89%E7%93%A3%E5%8F%8D%E6%B5%81%E4%BB%8B%E5%85%A5%E7%BD%AE%E6%8D%A2%E7%B3%BB%E7%BB%9F%20(TAVR%20System)%20Ken-Valve) Ken-Valve received NMPA registration and is rapidly commercializing in China, gaining widespread market recognition for its unique design and excellent clinical efficacy, particularly for patients with large annuli and complex anatomies - Ken-Valve rapidly initiated domestic commercialization after obtaining NMPA registration approval, continuously increasing hospital coverage and implantation volumes[6](index=6&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) - The product features a unique design suitable for severe aortic regurgitation (or combined with stenosis), performing excellently in patients with large annuli and complex anatomies, with an average device operation time of less than **10 minutes**[10](index=10&type=chunk)[53](index=53&type=chunk)[56](index=56&type=chunk) - One-year clinical follow-up results show a device success rate of **97.18%**, with **100%** of patients' aortic regurgitation reduced to mild or less from implantation to **1 year** post-surgery, improving cardiac function and quality of life[12](index=12&type=chunk)[55](index=55&type=chunk) [Transcatheter Mitral Valve Repair System (TMVr System) JensClip](index=4&type=section&id=2.2.3%20%E4%BA%8C%E5%B0%96%E7%93%A3%E5%8F%8D%E6%B5%81%E4%BB%8B%E5%85%A5%E4%BF%AE%E5%A4%8D%E7%B3%BB%E7%BB%9F%20(TMVr%20System)%20JensClip) JensClip's NMPA registration application in China is complete, with excellent one-year clinical follow-up results presented at EuroPCR 2025, demonstrating strong safety and efficacy, while global expansion is actively underway with pre-commercial rescue surgeries performed overseas - JensClip has completed its NMPA registration application submission and entered the registration phase[6](index=6&type=chunk)[11](index=11&type=chunk)[58](index=58&type=chunk) - One-year clinical follow-up results presented at EuroPCR 2025 showed an all-cause mortality rate of only **1.8%**, with **96.3%** of patients free from moderate or greater regurgitation, and sustained improvements in cardiac function and quality of life[12](index=12&type=chunk)[59](index=59&type=chunk) - Global expansion is actively underway, with pre-commercial rescue surgeries already performed overseas and preparations for CE registration application in progress[12](index=12&type=chunk)[60](index=60&type=chunk) [Other Pipeline Products & Platform Technologies](index=4&type=section&id=2.2.4%20%E5%85%B6%E4%BB%96%E5%9C%A8%E7%A0%94%E4%BA%A7%E5%93%81%E5%8F%8A%E5%B9%B3%E5%8F%B0%E6%8A%80%E6%9C%AF%20(Other%20Pipeline%20Products%20%26%20Platform%20Technologies)) The company also has JensRelive (transcatheter mitral valve replacement system) in preclinical research, SimuLock (bionic left atrial appendage occluder system) in registration clinical trials, and platform technologies like catheter sheath products, JeniGal anti-calcification technology, and dry valve and polymer leaflet technologies, continuously enriching its product pipeline - JensRelive (transcatheter mitral valve replacement system) is in the preclinical research stage, featuring a unique anchoring design and steerable function[60](index=60&type=chunk) - SimuLock (bionic left atrial appendage occluder system) has completed enrollment for its first confirmatory clinical trial and is currently in registration clinical trials[61](index=61&type=chunk) - Platform technologies include NMPA-registered catheter sheath products, JeniGal anti-calcification technology applicable to all commercialized and pipeline products, and dry valve and polymer leaflet technologies[37](index=37&type=chunk)[62](index=62&type=chunk) [Research and Development & Intellectual Property](index=5&type=section&id=2.3%20%E7%A0%94%E5%8F%91%E4%B8%8E%E7%9F%A5%E8%AF%86%E4%BA%A7%E6%9D%83) Innovative R&D is a core strategic pillar, driving technological iteration through strengthened R&D systems, deepened collaborations, and alignment with clinical needs, supported by **418 patent applications**, **237 granted patents**, **75 trademark applications**, and **52 registered trademarks**, forming a multi-layered IP protection system - Innovative R&D is a core strategic pillar, guided by clinical pain points, continuously deepening the R&D layout in the field of interventional structural heart disease treatment[63](index=63&type=chunk) - The company holds **418 patent applications** and **237 granted patents** in over **20 countries or regions**, along with **75 trademark registration applications** and **52 registered trademarks**[68](index=68&type=chunk) - A patent matrix covering core technologies and peripheral applications has been established, with patent grants obtained in major markets including the US, Europe, Australia, South America, and Japan[66](index=66&type=chunk) [Manufacturing](index=5&type=section&id=2.4%20%E7%94%9F%E4%BA%A7%E5%88%B6%E9%80%A0) The company operates a **7,000 square meter** GMP-compliant manufacturing facility in Ningbo with full-scale production capabilities, holding NMPA manufacturing licenses and ISO13485 certification, ensuring strict cost and quality control for commercialization and clinical supply - Manufacturing facilities are located in Ningbo, Zhejiang, China, covering approximately **7,000 square meters**, meeting GMP requirements, and possessing comprehensive large-scale production capabilities[67](index=67&type=chunk) - The company has obtained NMPA manufacturing license certification and ISO13485 certification, strictly adhering to production quality regulations[67](index=67&type=chunk)[69](index=69&type=chunk) - Continuous optimization of process stability, improvement of production capacity and product qualification rates, refined cost control, and enhanced supplier management are ongoing[67](index=67&type=chunk) [Commercialization Strategy](index=5&type=section&id=2.5%20%E5%95%86%E4%B8%9A%E5%8C%96%E6%88%98%E7%95%A5) The company has officially entered the commercialization phase, with a product portfolio covering tricuspid, mitral, and aortic valve diseases, rapidly expanding market awareness through differentiated product positioning and KOL academic promotion; Ken-Valve has established a regional distribution network in China, covering **24 provinces** and over **90 cities**, with ongoing overseas commercialization preparations - The company has officially entered the commercialization phase, with a product portfolio comprehensively covering structural heart diseases such as tricuspid, mitral, and aortic valves[13](index=13&type=chunk)[70](index=70&type=chunk) - Product awareness and target hospital coverage are rapidly expanding through differentiated product positioning, stable and simple operational performance, and global KOL academic promotion[71](index=71&type=chunk) - Ken-Valve has established a comprehensive regional distributor network in China, covering **24 provinces** and over **90 cities**, with flexible pricing and sales strategies in place[72](index=72&type=chunk) - Overseas commercialization preparation activities, primarily for the LuX-Valve series products, are continuously underway, exploring global business development collaborations with overseas medical device manufacturers and enterprises[72](index=72&type=chunk) - A professional and efficient commercialization team and a comprehensive internal and external training system have been established, actively participating in domestic and international industry academic conferences to enhance product market visibility[73](index=73&type=chunk)[74](index=74&type=chunk) [Future Development Strategy](index=25&type=section&id=2.6%20%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E6%88%98%E7%95%A5) The company's vision is to become a global leader in innovative structural heart disease products, planning to accelerate the global business expansion of the LuX-Valve series, broaden its product portfolio to meet clinical needs, and enhance operational efficiency to achieve high-growth revenue and profit, ultimately realizing sustainable long-term internationalization - The vision is to become a high-potential medical device enterprise with a global perspective and business layout, offering comprehensive innovative products[75](index=75&type=chunk) - The strategy includes accelerating the global business expansion of the LuX-Valve series products, aiming to become a benchmark in the field of transcatheter tricuspid valve replacement procedures[75](index=75&type=chunk) - Leveraging global collaboration resources and brand reputation established by LuX-Valve Plus to facilitate overseas business opportunities for the product portfolio[80](index=80&type=chunk) - Further expanding and optimizing the product portfolio, improving operational efficiency, accelerating high-growth revenue and profit generation, and achieving sustainable long-term internationalization[80](index=80&type=chunk) [Financial Statements](index=6&type=section&id=III.%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the interim condensed consolidated statement of profit or loss and other comprehensive income, and the interim condensed consolidated statement of financial position [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=3.1%20%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company recorded its first revenue of **RMB 13.4 million** and a gross profit of **RMB 11.8 million**; however, due to significant increases in R&D, administrative, and other expenses, the loss for the period expanded from **RMB 105.8 million** in the prior year to **RMB 170.3 million** Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Revenue | 13,426 | – | | Cost of Sales | (1,599) | – | | Gross Profit | 11,827 | – | | Other Income and Gains | 12,144 | 16,950 | | Research and Development Expenses | (88,885) | (82,233) | | Administrative Expenses | (57,433) | (35,291) | | Selling and Distribution Expenses | (3,844) | – | | Other Expenses | (43,960) | (5,050) | | Finance Costs | (138) | (141) | | Loss Before Tax | (170,289) | (105,765) | | Income Tax Expense | – | – | | Loss for the Period | (170,289) | (105,765) | - Loss attributable to owners of the parent company was **RMB 169.6 million**, and loss attributable to non-controlling interests was **RMB 0.7 million**[15](index=15&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=8&type=section&id=3.2%20%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B2%A1%E5%8B%99%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the company's total assets less current liabilities decreased to **RMB 872.1 million** from **RMB 963.4 million** at the end of 2024; net current assets decreased to **RMB 552.2 million**, and cash and cash equivalents decreased by **RMB 110.6 million** to **RMB 495.4 million** Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Total Non-Current Assets | 319,867 | 341,710 | | Total Current Assets | 647,899 | 685,855 | | Total Current Liabilities | 95,663 | 64,201 | | Net Current Assets | 552,236 | 621,654 | | Net Assets | 855,104 | 916,953 | | Cash and Cash Equivalents | 495,412 | 605,991 | | Trade Receivables | 6,259 | – | | Contract Liabilities | 13,742 | – | - Equity attributable to owners of the parent company was **RMB 870.6 million**, and non-controlling interests were **RMB (15.5) million**[18](index=18&type=chunk) [Notes to the Financial Statements](index=10&type=section&id=IV.%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E6%B3%A8) This section provides detailed notes on the company's and group's information, basis of preparation, accounting policies, operating segment data, revenue recognition, loss before tax, income tax, dividends, loss per share, property, plant and equipment, trade receivables, and trade payables [Company and Group Information](index=10&type=section&id=4.1%20%E5%85%AC%E5%8F%B8%E5%8F%8A%E9%9B%86%E5%9B%A2%E8%B3%87%E6%96%99) Ningbo Jenscare Biotechnology Co., Ltd. was incorporated in China in **2011** and listed on the Main Board of the Hong Kong Stock Exchange in October **2022**, primarily engaged in the R&D, manufacturing, and sales of interventional products for structural heart disease and related medical products - The company was incorporated in China on November 8, **2011**, and listed on the Main Board of the Hong Kong Stock Exchange on October 10, **2022**[19](index=19&type=chunk)[20](index=20&type=chunk) - The Group is primarily engaged in the research, development, manufacturing, and sale of interventional products for the treatment of structural heart diseases and other related medical products[20](index=20&type=chunk) [Basis of Preparation and Accounting Policies](index=10&type=section&id=4.2%20%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86%E4%B8%8E%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024; the first-time adoption of IAS 21 amendment 'Lack of Exchangeability' had no impact on the financial information - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard **34** and presented in RMB[21](index=21&type=chunk) - The IAS **21** amendment "Lack of Exchangeability" had no impact on the interim condensed consolidated financial information[23](index=23&type=chunk) [Operating Segment Information](index=11&type=section&id=4.3%20%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group has only one reportable operating segment, with management monitoring overall operating results; no further geographical information is presented as the vast majority of non-current assets are located in China - The Group does not classify business units by product and has only one reportable operating segment[24](index=24&type=chunk) - As the vast majority of the Group's non-current assets were located in China during the reporting period, no further geographical information is presented[25](index=25&type=chunk) [Revenue](index=11&type=section&id=4.4%20%E6%94%B6%E5%85%A5) Revenue from the sale of interventional products is recognized when control of the product is transferred, meaning goods are delivered to the specified location and accepted by the customer, or objective evidence of meeting acceptance criteria is obtained, with sales revenue of **RMB 13.4 million** for the reporting period - Revenue from the sale of interventional products is recognized when control of the product is transferred[26](index=26&type=chunk) Sales Revenue | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Sales Revenue | 13,426 | – | [Loss Before Tax](index=11&type=section&id=4.5%20%E9%99%A4%E7%A8%85%E5%89%8D%E4%BA%8F%E6%8D%9F) Loss before tax for the reporting period was **RMB 170.3 million**, primarily impacted by increased R&D, administrative, and other expenses (such as contract termination fees and foreign exchange losses), while government grants and bank interest income provided some contribution Components of Loss Before Tax | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 3,705 | 4,572 | | Research and Development Expenses | 88,885 | 82,233 | | Other Receivables (Reversal of Impairment)/Impairment | (321) | 876 | | Inventory Write-down | 669 | 2,311 | | Government Grants | (3,022) | (1,119) | | Bank Interest Income | (7,197) | (7,674) | | Net Exchange Differences | 6,782 | (2,666) | - Loss before tax was **RMB 170.3 million**, an increase from **RMB 105.8 million** in the prior year[14](index=14&type=chunk)[26](index=26&type=chunk) [Income Tax](index=12&type=section&id=4.6%20%E6%89%80%E5%BE%97%E7%A8%85) No income tax expense was incurred during the reporting period, as entities in China, Hong Kong, the Netherlands, and the US had no estimated taxable profits, and no deferred tax assets were recognized - The Group incurred no income tax expense during the reporting period[27](index=27&type=chunk)[89](index=89&type=chunk) - The Group's entities in China, Hong Kong, the Netherlands, and the US had no estimated taxable profits during the period, thus no provision for income tax was made, and no deferred tax assets were recognized[27](index=27&type=chunk)[30](index=30&type=chunk) [Dividends](index=12&type=section&id=4.7%20%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the company neither paid nor declared any dividends - The company neither paid nor declared any dividends for the six months ended June 30, 2025[28](index=28&type=chunk)[108](index=108&type=chunk) [Loss Per Share](index=12&type=section&id=4.8%20%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) Basic and diluted loss per share was **RMB (0.41)**, calculated based on the loss for the period attributable to ordinary equity holders of the parent company and the weighted average number of shares; due to negative financial performance, shares held under the share award scheme had an anti-dilutive effect on loss per share, thus diluted loss per share equaled basic loss per share Loss Per Share | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | RMB (0.41) | RMB (0.25) | | Weighted Average Number of Ordinary Shares Issued | 408,934,000 shares | 413,015,000 shares | - Due to the Group's negative financial performance during the period, shares held under the share award scheme had an anti-dilutive effect on the Group's loss per share; therefore, diluted loss per share was equal to basic loss per share[29](index=29&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=4.9%20%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87) For the six months ended June 30, 2025, the Group's cost of acquiring assets was **RMB 6.7 million**, a significant decrease from **RMB 20.0 million** in the prior year Acquisition Cost of Assets | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Cost of Acquiring Assets | 6,719 | 20,033 | [Trade Receivables](index=13&type=section&id=4.10%20%E8%B2%BF%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade receivables amounted to **RMB 6.3 million**, all due within one year, an increase from zero at the end of 2024, reflecting sales growth from commercialization activities Trade Receivables by Ageing | Ageing | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 6,259 | – | - Trade receivables increased to **RMB 6.3 million**, with no provision for doubtful debts made[32](index=32&type=chunk)[34](index=34&type=chunk) [Trade Payables](index=14&type=section&id=4.11%20%E8%B2%BF%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables were **RMB 15.6 million**, with **RMB 13.0 million** due within one year and **RMB 2.6 million** over one year; amounts due to related parties were **RMB 1.3 million** Trade Payables by Ageing | Ageing | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 12,959 | 9,821 | | Over 1 year | 2,649 | 2,276 | | **Total** | **15,608** | **12,097** | - Trade payables include **RMB 1.3 million** due to related parties, repayable within **1 year**[35](index=35&type=chunk) [Financial Review](index=26&type=section&id=V.%20%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed review of the company's financial performance, including revenue, cost of sales, gross profit, operating expenses, finance costs, loss for the period, cash flow, capital expenditure, key financial ratios, liquidity, asset pledges, contingent liabilities, material investments, and foreign exchange risk [Revenue and Cost of Sales](index=26&type=section&id=5.1%20%E6%94%B6%E5%85%A5%E4%B8%8E%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) During the reporting period, the company recorded its first revenue of **RMB 13.4 million**, primarily from increased sales of interventional structural heart disease products, with cost of sales at **RMB 1.6 million**, rising with sales volume - Revenue for the reporting period was **RMB 13.4 million** (June 30, 2024: nil), primarily due to the continuous commercialization of interventional products for structural heart disease, leading to increased sales volume[76](index=76&type=chunk) - Cost of sales was **RMB 1.6 million** (June 30, 2024: nil), mainly due to increased raw material costs, labor costs, and manufacturing expenses resulting from higher sales volume[77](index=77&type=chunk) [Gross Profit and Gross Profit Margin](index=26&type=section&id=5.2%20%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit for the reporting period was **RMB 11.8 million**, with a gross profit margin of **88.1%**, consistent with revenue growth Gross Profit and Gross Profit Margin | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Gross Profit | 11,827 | – | | Gross Profit Margin | 88.1% | – | [Selling and Distribution Expenses](index=26&type=section&id=5.3%20%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E5%BC%80%E6%94%AF) Selling and distribution expenses for the reporting period were **RMB 3.8 million**, primarily due to increased frequency and scale of marketing campaigns and expanded regional coverage Selling and Distribution Expenses | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Selling and Distribution Expenses | 3,844 | – | - Selling and distribution expenses increased, primarily attributable to the continuous increase in the frequency and scale of market promotion and expanded regional coverage[79](index=79&type=chunk) [Other Income and Gains](index=27&type=section&id=5.4%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains decreased from **RMB 17.0 million** in the prior year to **RMB 12.1 million**, primarily due to reduced gains from financial assets at fair value through profit or loss and foreign exchange gains Other Income and Gains | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Other Income and Gains | 12,144 | 16,950 | - The decrease was primarily attributable to reduced gains from financial assets at fair value through profit or loss and foreign exchange gains[81](index=81&type=chunk) [Research and Development Expenses](index=27&type=section&id=5.5%20%E7%A0%94%E5%8F%91%E5%BC%80%E6%94%AF) R&D expenses increased from **RMB 82.2 million** in the prior year to **RMB 88.9 million**, primarily due to a significant **RMB 24.5 million** increase in share-based payment expenses, partially offset by lower staff costs, raw materials, and consumables Research and Development Expenses Breakdown | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Share-based Payment Expenses | 36,238 | 11,716 | | Staff Costs | 15,622 | 25,160 | | Raw Materials and Consumables Costs | 6,755 | 11,857 | | Third-Party Contract Costs | 18,877 | 17,135 | | Depreciation and Amortization | 2,761 | 4,386 | | Others | 8,632 | 11,979 | | **Total** | **88,885** | **82,233** | - The increase in R&D expenses was primarily attributable to share-based payment expenses increasing by **RMB 24.5 million** from **RMB 11.7 million** to **RMB 36.2 million**[83](index=83&type=chunk) [Administrative Expenses](index=28&type=section&id=5.6%20%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses increased from **RMB 35.3 million** in the prior year to **RMB 57.4 million**, primarily due to a significant **RMB 32.9 million** increase in share-based payment expenses, partially offset by lower staff costs and professional service fees Administrative Expenses Breakdown | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Share-based Payment Expenses | 35,448 | 2,556 | | Staff Costs | 9,855 | 17,667 | | Professional Service Fees | 3,668 | 5,795 | | Depreciation and Amortization | 2,076 | 2,185 | | Travel and Transportation Expenses | 1,433 | 1,739 | | Utilities and Office Expenses | 935 | 498 | | Others | 4,018 | 4,851 | | **Total** | **57,433** | **35,291** | - The increase in administrative expenses was primarily attributable to share-based payment expenses increasing by **RMB 32.9 million** from **RMB 2.6 million** to **RMB 35.4 million**[85](index=85&type=chunk) [Other Expenses](index=28&type=section&id=5.7%20%E5%85%B6%E4%BB%96%E5%BC%80%E6%94%AF) Other expenses significantly increased from **RMB 5.1 million** in the prior year to **RMB 44.0 million**, primarily attributable to increased contract termination fees, foreign exchange losses, and external donations Other Expenses | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Other Expenses | 43,960 | 5,050 | - The increase in other expenses was primarily attributable to increased contract termination fees, foreign exchange losses, and external donations[87](index=87&type=chunk) [Finance Costs](index=29&type=section&id=5.8%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs decreased from **RMB 141 thousand** in the prior year to **RMB 138 thousand**, primarily due to reduced interest expenses on lease liabilities Finance Costs | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Finance Costs | 138 | 141 | - The decrease in finance costs was primarily attributable to reduced interest expenses on lease liabilities[88](index=88&type=chunk) [Income Tax Expense](index=29&type=section&id=5.9%20%E6%89%80%E5%BE%97%E7%A8%85%E5%BC%80%E6%94%AF) No income tax expense was incurred during the reporting period - The Group incurred no income tax expense during the reporting period[89](index=89&type=chunk) [Loss for the Period and Adjusted Non-IFRS Loss](index=29&type=section&id=5.10%20%E6%9C%9F%E5%85%A7%E4%BA%8F%E6%8D%9F%E5%8F%8A%E7%BB%8F%E8%B0%83%E6%95%B4%E9%9D%9EIFRS%E4%BA%8F%E6%8D%9F) Loss for the period expanded to **RMB 170.3 million**, while adjusted non-IFRS loss was **RMB 91.8 million**, narrowing from **RMB 94.2 million** in the prior year, primarily due to revenue growth and improved operational efficiency Reconciliation of Loss for the Period to Adjusted Non-IFRS Loss | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Loss for the Period | (170,289) | (105,765) | | Add: Share-based Payment Expenses | 71,751 | 14,272 | | Add: Net Exchange Differences | 6,782 | (2,666) | | **Adjusted Non-IFRS Loss for the Period** | **(91,756)** | **(94,159)** | - Adjusted non-IFRS loss for the period was **RMB 91.8 million**, a decrease of **RMB 2.4 million** from **RMB 94.2 million** in the prior year, primarily due to revenue growth and continuous improvements in management operational efficiency and cost control[4](index=4&type=chunk)[90](index=90&type=chunk) [Working Capital and Cash Flow](index=30&type=section&id=5.11%20%E8%90%A5%E8%BF%90%E8%B3%87%E9%87%91%E4%B8%8E%E7%8E%B0%E9%87%91%E6%B5%81) During the reporting period, net cash outflow from operating activities was **RMB 92.7 million**, from investing activities **RMB 10.0 million**, and from financing activities **RMB 8.2 million**; cash and cash equivalents decreased by **RMB 110.6 million** to **RMB 495.4 million**, and net current assets decreased to **RMB 552.2 million** Cash Flow Summary | Cash Flow Type | June 30, 2025 (Thousand RMB) | | :--- | :--- | | Net Cash Outflow from Operating Activities | (92,700) | | Net Cash Outflow from Investing Activities | (10,000) | | Net Cash Outflow from Financing Activities | (8,200) | - As of June 30, 2025, cash and cash equivalents amounted to **RMB 495.4 million**, a decrease of **RMB 110.6 million** from December 31, 2024[93](index=93&type=chunk) - Net current assets decreased from **RMB 621.7 million** as of December 31, 2024, to **RMB 552.2 million** during the reporting period[93](index=93&type=chunk) [Capital Expenditure](index=30&type=section&id=5.12%20%E8%B3%87%E6%9C%AC%E5%BC%80%E6%94%AF) Capital expenditure decreased from **RMB 21.5 million** in the prior year to **RMB 6.0 million**, primarily due to reduced spending on property, plant, and equipment acquisitions Capital Expenditure | Indicator | June 30, 2025 (Thousand RMB) | June 30, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Capital Expenditure | 6,000 | 21,500 | - The decrease in capital expenditure was primarily attributable to reduced spending on property, plant, and equipment acquisition projects[94](index=94&type=chunk) [Key Financial Ratios](index=31&type=section&id=5.13%20%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87) As of June 30, 2025, the current ratio was **6.77**, quick ratio **6.39**, and debt-to-asset ratio **11.6%**; compared to the end of 2024, current and quick ratios significantly decreased, while the debt-to-asset ratio increased Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 6.77 | 17.1 | | Quick Ratio | 6.39 | 16.6 | | Debt-to-Asset Ratio | 11.6% | 9.0% | - Current and quick ratios significantly decreased, while the debt-to-asset ratio increased, reflecting a tightening of liquidity[95](index=95&type=chunk) [Liquidity and Financial Resources](index=31&type=section&id=5.14%20%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) As of June 30, 2025, total cash and cash equivalents and time deposits were approximately **RMB 567.3 million**, a decrease of **RMB 140.2 million** from the end of 2024; the company maintains a sound financial position, confident in meeting daily operational needs, and expects to generate more cash flow through continuous product sales Cash and Deposits | Indicator | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Total Cash and Cash Equivalents, Time Deposits | 567,300 | 707,500 | - The company relies on equity contributions and funds generated from commercialized product sales as its primary sources of liquidity, expecting to generate more cash flow through continuous product sales[98](index=98&type=chunk) - Contract liabilities amounted to **RMB 13.7 million**, reflecting consideration received from customers for goods not yet transferred[96](index=96&type=chunk) [Pledge of Assets](index=32&type=section&id=5.15%20%E8%B3%87%E4%BA%A7%E6%8A%B5%E6%8A%BC) As of June 30, 2025, certain leasehold land with a carrying value of **RMB 24.1 million** was pledged as collateral for bank borrowings of **RMB 15.8 million** - As of June 30, 2025, certain leasehold land with a carrying value of **RMB 24.1 million** was pledged as collateral for bank borrowings of **RMB 15.8 million**[99](index=99&type=chunk) [Contingent Liabilities](index=32&type=section&id=5.16%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%80%BA) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[100](index=100&type=chunk) [Material Investments, Acquisitions and Disposals](index=32&type=section&id=5.17%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the Group held no material investments and undertook no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group held no material investments and undertook no material acquisitions or disposals of subsidiaries, associates, or joint ventures[101](index=101&type=chunk) [Foreign Exchange Risk](index=32&type=section&id=5.18%20%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) The company primarily operates in mainland China, with most transactions settled in RMB, facing foreign currency risk mainly from USD to RMB exchange rate fluctuations; currently, there is no foreign currency hedging policy, but management monitors and will consider appropriate hedging measures in the future - The company faces foreign currency risk primarily arising from fluctuations in the USD to RMB exchange rate[102](index=102&type=chunk) - The company currently has no foreign currency hedging policy; management monitors foreign exchange risk and will consider appropriate hedging measures if needed in the future[102](index=102&type=chunk) [Human Resources](index=32&type=section&id=VI.%20%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) This section outlines the company's employee situation and benefits, including the total number of employees, compensation, incentive plans, and training programs [Employee Information and Benefits](index=32&type=section&id=6.1%20%E9%9B%87%E5%91%98%E6%83%85%E5%86%B5%E4%B8%8E%E7%A6%8F%E5%88%A9) As of June 30, 2025, the Group had **174 employees**, offering competitive salaries, incentive programs, and benefits, along with continuous education and training to enhance skills and knowledge, complemented by employee award schemes and an H-share scheme - As of June 30, 2025, the Group had a total of **174 employees**[103](index=103&type=chunk) - The company provides employees with competitive salaries, opportunities to participate in various incentive programs, and other benefits, along with continuous education and training programs to enhance their skills and knowledge[104](index=104&type=chunk) - The company adopted employee award schemes on October 30, 2020, and April 27, 2021, and an H-share scheme on December 15, 2023[105](index=105&type=chunk) [Use of Net Proceeds from Global Offering](index=33&type=section&id=VII.%20%E5%85%A8%E7%90%83%E5%8F%91%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%8D%E5%87%80%E9%A1%8D%E7%94%A8%E9%80%94) This section details the net proceeds received from the global offering, the subsequent changes in their allocation, and the actual utilization of these funds [Changes in Use of Proceeds and Actual Utilization](index=33&type=section&id=7.1%20%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%8D%E7%94%A8%E9%80%94%E5%8F%98%E6%9B%B4%E5%8F%8A%E5%AE%9E%E9%99%85%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) The company listed in October **2022**, with net proceeds from the global offering of **HKD 206.4 million**; on May 22, 2025, shareholders approved changes to the use of net proceeds, primarily adjusting allocations for R&D, manufacturing, and commercialization of the LuX-Valve series and Ken-Valve, as well as R&D, clinical trials, and product registration for other pipeline products including KenFlex and JensClip - The net proceeds received by the company from the global offering (after deducting underwriting fees and related expenses) amounted to **HKD 206.4 million**[106](index=106&type=chunk) - On May 22, 2025, shareholders approved changes to the use of net proceeds from the global offering at the company's annual general meeting[106](index=106&type=chunk) Use of Net Proceeds from Global Offering | Business Objective as per Prospectus | Initial Allocation (Million HKD) | Revised Allocation (Million HKD) | Utilized as of June 30, 2025 (Million HKD) | Unutilized as of June 30, 2025 (Million HKD) | Expected Timeline for Utilizing Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Funding R&D, Manufacturing, and Commercialization of LuX-Valve and Ken-Valve | 134.1 | 129.5 | 5.4 | 124.1 | Before June 30, 2028 | | Funding R&D, Clinical Trials, and Product Registration for Other Pipeline Products (including KenFlex and JensClip) | 51.6 | 15.5 | 1.6 | 13.9 | Before June 30, 2028 | | Working Capital and General Corporate Purposes | 20.7 | 9.9 | 0.1 | 9.8 | Before December 31, 2027 | | **Total** | **206.4** | **154.9** | **7.1** | **147.8** | | [Dividends and Subsequent Events](index=34&type=section&id=VIII.%20%E8%82%A1%E6%81%AF%E5%8F%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A0%85) This section covers the Board's recommendation regarding interim dividends and any significant events that occurred after the reporting period [Interim Dividends](index=34&type=section&id=8.1%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the reporting period - The Board does not recommend the payment of an interim dividend for the reporting period (six months ended June 30, 2024: nil)[108](index=108&type=chunk) [Material Events After the Reporting Period](index=34&type=section&id=8.2%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E9%97%B4%E5%90%8E%E7%9A%84%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) Subsequent to the reporting period and up to the date of this announcement, neither the Company nor the Group undertook any material post-reporting period events - Subsequent to the reporting period and up to the date of this announcement, neither the company nor the Group undertook any material post-reporting period events[109](index=109&type=chunk) [Corporate Governance](index=35&type=section&id=IX.%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) This section outlines the company's corporate governance measures, compliance with securities trading standards, policies on purchasing, selling, or redeeming listed securities, the Audit Committee's review of interim results, and the publication of interim results and reports [Corporate Governance Measures](index=35&type=section&id=9.1%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E6%8E%AA%E6%96%BD) The company has adopted and is committed to maintaining high standards of corporate governance, fully complying with all applicable code provisions during the reporting period, except for the dual role of Chairman and CEO held by Mr. Lu, which was resolved upon Mr. Pan Fei's appointment as CEO on January 15, 2025 - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules as its own corporate governance code[110](index=110&type=chunk) - During the reporting period and until January 15, 2025, the roles of Chairman and Chief Executive Officer were combined and held by Mr. Lu, representing a deviation from Code Provision C.2.1 of the Corporate Governance Code[111](index=111&type=chunk) - Following Mr. Lu's resignation as the company's Chief Executive Officer and Mr. Pan Fei's appointment as Chief Executive Officer on January 15, 2025, the company has fully complied with all code provisions set out in the Corporate Governance Code[111](index=111&type=chunk) - The Board currently comprises one executive director, five non-executive directors, and three independent non-executive directors, demonstrating strong independence in its composition[112](index=112&type=chunk) [Compliance with the Model Code for Securities Transactions](index=35&type=section&id=9.2%20%E9%81%B5%E5%AE%88%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The company adopted the Model Code in Appendix C3 of the Listing Rules as its code of conduct for securities transactions by directors and supervisors, requiring compliance from relevant senior officers and employees; all directors and supervisors confirmed full compliance with the Model Code during the reporting period - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as its own code of conduct for securities transactions by directors and supervisors[113](index=113&type=chunk) - Following specific inquiries made to all directors and supervisors, each of them confirmed full compliance with the Model Code during the reporting period[113](index=113&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=36&type=section&id=9.3%20%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities; as of June 30, 2025, the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[114](index=114&type=chunk) - As of June 30, 2025, the company held no treasury shares[114](index=114&type=chunk) [Audit Committee Review of Interim Results](index=36&type=section&id=9.4%20%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A%E5%AE%A1%E9%98%85%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's interim results and adopted accounting principles and policies for the reporting period, concluding that the interim results were prepared in accordance with applicable accounting standards, rules, and regulations, with proper disclosures - The Audit Committee comprises three independent non-executive directors, with Ms. Du Jiliu serving as the Audit Committee Chairman[115](index=115&type=chunk) - The Audit Committee has reviewed and considered the Group's interim results for the reporting period and the accounting principles and policies adopted by the company, concluding that the Group's interim results were prepared in accordance with applicable accounting standards, rules, and regulations, and proper disclosures were made[116](index=116&type=chunk) - There were no disagreements between the Board and the Audit Committee regarding the accounting treatments adopted by the company[116](index=116&type=chunk) [Publication of Interim Results and Interim Report](index=36&type=section&id=9.5%20%E5%88%8A%E5%8F%91%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the HKEX and company websites; the 2025 interim report will be dispatched to shareholders requesting printed copies and posted on the HKEX and company websites by the end of September - This interim results announcement has been published on the HKEX website and the company's website, respectively[117](index=117&type=chunk) - The company's 2025 interim report will be dispatched to shareholders requesting printed copies and posted on the HKEX and company websites by the end of September[117](index=117&type=chunk) [Definitions](index=37&type=section&id=X.%20%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used in the report, including company entities, regulatory bodies, product names, financial terminology, and listing-related concepts, to ensure clear understanding of the report content [Definitions of Terms](index=37&type=section&id=10.1%20%E6%9C%AF%E8%AF%AD%E5%AE%9A%E4%B9%89) This section provides definitions for key terms and abbreviations used in the report, including company entities, regulatory bodies, product names, financial terminology, and listing-related concepts, to ensure clear understanding of the report content - This section provides definitions for key terms and abbreviations used in the report, such as "Audit Committee", "Board", "CE Mark", "China", "Company", "Controlling Shareholder", "Core Products", "Directors", "Domestic Shares", "Global Offering", "Group", "H Shares", "Hong Kong", "HKD", "Listing Rules", "Model Code", "Mr. Lu", "NMPA", "Prospectus", "R&D", "Reporting Period", "RMB", "Shares", "Shareholders", "Stock Exchange", "Supervisors", "Treasury Shares", "US", "Unlisted Foreign Shares", "Unlisted Shares", and "%"[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk)

[Company Information](index=1&type=section&id=Company%20Information) [Company Overview](index=1&type=section&id=Company%20Overview) Planetree International Development Limited (Stock Code: 613) is a company incorporated in Bermuda, and this report presents its unaudited interim results for the six months ended June 30, 2025 - Company Name: **Planetree International Development Limited**[2](index=2&type=chunk) - Stock Code: **613**[2](index=2&type=chunk) - Place of Incorporation: **Bermuda**[2](index=2&type=chunk) - Reporting Period: **Six months ended June 30, 2025 (unaudited)**[3](index=3&type=chunk) [Board of Directors](index=27&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises executive, independent non-executive, and non-executive directors, with Dr. Chuang Yau Hong as Chairman and Mr. Cheung Ting Ki as Vice Chairman - Executive Directors include: Mr. Cheung Ting Ki (Vice Chairman), Ms. Cheung Ka Yee, Mr. Dai Bin, Mr. Lam Hiu Lo, Mr. Wong Kin Chun[78](index=78&type=chunk) - Independent Non-executive Directors include: Mr. Chan Sze Hung, Mr. Chung Kwok Pan, Mr. Ma Ka Ki, Mr. Cheung Sheung[78](index=78&type=chunk) - Non-executive Director: Dr. Chuang Yau Hong (Chairman)[78](index=78&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group achieved a profit before tax of HK$104,600 thousand, a significant improvement from a loss of HK$94,204 thousand in the prior period, with profit attributable to owners at HK$107,663 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Revenue | 45,297 | 53,446 | | Other Income and Gains | 79,717 | 184 | | Profit (Loss) Before Tax | 104,600 | (94,204) | | Profit (Loss) for the Period | 104,382 | (94,291) | | Total Comprehensive Income (Expense) for the Period | 139,485 | (161,545) | | Profit (Loss) for the Period Attributable to Owners of the Company | 107,663 | (91,050) | | Profit (Loss) for the Period Attributable to Non-controlling Interests | (3,281) | (3,241) | | Total Comprehensive Income (Expense) Attributable to Owners of the Company | 142,766 | (158,304) | | Total Comprehensive Income (Expense) Attributable to Non-controlling Interests | (3,281) | (3,241) | - Total revenue decreased by **15.2%** year-on-year, from **HK$53,446 thousand** to **HK$45,297 thousand**[3](index=3&type=chunk) - Other income and gains significantly increased from **HK$184 thousand** to **HK$79,717 thousand**[3](index=3&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets increased, with significant growth in investments in associates and financial assets at fair value through profit or loss within non-current assets, and continued growth in net current assets Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 976,136 | 859,150 | | Total Current Assets | 1,076,952 | 1,007,147 | | Total Current Liabilities | 284,237 | 258,856 | | Net Current Assets | 792,715 | 748,291 | | Total Assets Less Current Liabilities | 1,768,851 | 1,607,441 | | Total Non-current Liabilities | 6,443 | 10,568 | | Net Assets | 1,762,408 | 1,596,873 | | Equity Attributable to Owners of the Company | 1,493,019 | 1,320,477 | | Share Capital | 96,053 | 94,553 | - Investments in associates increased from **HK$247,066 thousand** to **HK$318,250 thousand**[5](index=5&type=chunk) - Financial assets at fair value through profit or loss (non-current) increased from **HK$49,407 thousand** to **HK$104,682 thousand**[5](index=5&type=chunk) - Bank balances and cash increased from **HK$39,300 thousand** to **HK$100,130 thousand**[5](index=5&type=chunk) [Earnings (Loss) Per Share](index=2&type=section&id=Earnings%20(Loss)%20Per%20Share) For the six months ended June 30, 2025, the company achieved a basic and diluted earnings per share of 11.39 HK cents, reversing a loss of 9.63 HK cents per share in the prior period Earnings (Loss) Per Share | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic Earnings (Loss) Per Share | 11.39 | (9.63) | | Diluted Earnings (Loss) Per Share | 11.39 | (9.63) | - Profit (loss) for the period attributable to owners of the company used in calculating basic and diluted earnings (loss) per share was **HK$107,663 thousand** (2024: loss of **HK$91,050 thousand**)[25](index=25&type=chunk) - Diluted earnings (loss) per share was the same as basic earnings (loss) per share due to the absence of potential dilutive ordinary shares outstanding[25](index=25&type=chunk) [Interim Dividend](index=10&type=section&id=Interim%20Dividend) The Board does not recommend paying an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend paying an interim dividend for the six months ended June 30, 2025[23](index=23&type=chunk) - No interim dividend was paid for the six months ended June 30, 2024[23](index=23&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Changes in Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The Group's interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, adopting new/revised HKFRSs effective January 1, 2025, with no significant impact on performance or financial position - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange[8](index=8&type=chunk) - New/revised Hong Kong Financial Reporting Standards accounting standards, such as Hong Kong Accounting Standard 21 (Revised) "Lack of Exchangeability", have been adopted[9](index=9&type=chunk) - The adoption of new standards has no significant impact on the Group's current or prior period's results and financial position, nor will it lead to any significant changes in accounting policies[9](index=9&type=chunk) [Segment Information](index=5&type=section&id=Segment%20Information) The Group's operating segments include financial services, credit and lending, other financial services, property investment and leasing, and tactical and strategic investments, with tactical and strategic investments contributing significant profit and property investment incurring a large loss in H1 2025 - The Group's reportable operating segments include: financial services (licensed under the Securities and Futures Ordinance), credit and lending services (licensed under the Money Lenders Ordinance), other financial services, property investment and leasing, and tactical and strategic investments[11](index=11&type=chunk)[14](index=14&type=chunk) Segment Revenue and Results (For the six months ended June 30, 2025) | Segment | Revenue (HK$ thousand) | Other Income and Gains (HK$ thousand) | Segment Revenue (HK$ thousand) | Segment Profit (Loss) (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial Services – Licensed under Securities and Futures Ordinance | 13,404 | 526 | 13,930 | 46,611 | | Credit and Lending Services – Licensed under Money Lenders Ordinance | 2,275 | – | 2,275 | 2,401 | | Other Financial Services | 6,262 | 46 | 6,308 | (506) | | Property Investment and Leasing | 5,481 | 1 | 5,482 | (67,755) | | Tactical and Strategic Investments | 17,875 | 79,103 | 96,978 | 140,447 | | Consolidated | 45,297 | 79,676 | 124,973 | 121,198 | Segment Revenue and Results (For the six months ended June 30, 2024) | Segment | Revenue (HK$ thousand) | Other Income and Gains (HK$ thousand) | Segment Revenue (HK$ thousand) | Segment Profit (Loss) (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial Services – Licensed under Securities and Futures Ordinance | 38,975 | 92 | 39,067 | 22,630 | | Credit and Lending Services – Licensed under Money Lenders Ordinance | 1,550 | 75 | 1,625 | 435 | | Other Financial Services | 7,219 | 10 | 7,229 | 1,967 | | Property Investment and Leasing | 5,702 | 1 | 5,703 | (11,572) | | Tactical and Strategic Investments | – | 1 | 1 | (88,152) | | Consolidated | 53,446 | 179 | 53,625 | (74,692) | [Revenue and Other Income Details](index=8&type=section&id=Revenue%20and%20Other%20Income%20Details) Total revenue decreased by 15.2% to HK$45,297 thousand, while other income and gains significantly rose to HK$79,717 thousand, primarily from fair value gains on financial assets at fair value through profit or loss Revenue Details (For the six months ended June 30) | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Fees and Commission Income | 3,808 | 443 | | Financial Advisory Services Income | 3,642 | 1,794 | | Asset Management Services Income | – | 1,180 | | Corporate Advisory Services Income | 6,262 | 7,219 | | Interest Income from Margin Clients | 5,954 | 35,558 | | Interest Income from Loan Receivables | 2,275 | 1,550 | | Net Gain on Disposal of Financial Assets at Fair Value Through Profit or Loss | 17,875 | – | | Gross Rental Income | 5,481 | 5,702 | | **Total Revenue** | **45,297** | **53,446** | Other Income and Gains Details (For the six months ended June 30) | Other Income and Gains Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank Deposit Interest Income | 286 | 55 | | Clearing House Interest Income | 21 | 36 | | Net Fair Value Gain on Financial Assets at Fair Value Through Profit or Loss | 79,103 | – | | Others | 307 | 93 | | **Total Other Income and Gains** | **79,717** | **184** | - Interest income from margin clients significantly decreased from **HK$35,558 thousand** to **HK$5,954 thousand**, primarily due to a reduction in margin loan interest rates[17](index=17&type=chunk)[46](index=46&type=chunk) [Other Losses](index=9&type=section&id=Other%20Losses) For the six months ended June 30, 2025, the Group recorded total other losses of HK$66,997 thousand, mainly driven by a net fair value loss on investment properties of HK$67,000 thousand, while the prior period's primary loss source was net fair value loss on financial assets at fair value through profit or loss Other Losses Details (For the six months ended June 30) | Loss Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Exchange (Gain) Loss | (3) | 1 | | Net Fair Value Loss on Financial Assets at Fair Value Through Profit or Loss | – | 39,937 | | Net Fair Value Loss on Investment Properties | 67,000 | 9,900 | | **Total** | **66,997** | **49,838** | - Net fair value loss on investment properties increased from **HK$9,900 thousand** to **HK$67,000 thousand**, constituting the main component of other losses for the period[18](index=18&type=chunk) [Finance Costs](index=9&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs decreased to HK$5,885 thousand from HK$8,175 thousand in the prior period, mainly due to reduced interest on interest-bearing loans and margin accounts Finance Costs Details (For the six months ended June 30) | Type of Finance Costs | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Interest-bearing Loans | 5,561 | 7,303 | | Interest on Margin Accounts | 76 | 525 | | Imputed Interest on Lease Liabilities | 248 | 347 | | **Total** | **5,885** | **8,175** | - Interest on interest-bearing loans decreased from **HK$7,303 thousand** to **HK$5,561 thousand**[19](index=19&type=chunk) - Interest on margin accounts decreased from **HK$525 thousand** to **HK$76 thousand**[19](index=19&type=chunk) [Profit (Loss) Before Tax](index=10&type=section&id=Profit%20(Loss)%20Before%20Tax) Profit (loss) before tax for the period is calculated after deducting employee benefit expenses and amortization of intangible assets, with employee benefit expenses slightly decreasing and intangible asset amortization remaining stable Profit (Loss) Before Tax Calculation Items (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Salaries and Other Benefits | 10,728 | 11,931 | | Retirement Benefit Scheme Contributions | 259 | 271 | | **Total Employee Benefit Expenses** | **10,987** | **12,202** | | Amortisation of Intangible Assets | 25 | 25 | - Employee benefit expenses (including directors' emoluments) decreased from **HK$12,202 thousand** to **HK$10,987 thousand**[20](index=20&type=chunk) [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) The Group's income tax expense is calculated based on Hong Kong's two-tiered profits tax regime, with the first HK$2,000,000 of assessable profits taxed at 8.25% and the remainder at 16.5%, resulting in an expense of HK$218 thousand for the period, up from HK$87 thousand in the prior period - Hong Kong's two-tiered profits tax regime: the first **HK$2,000,000** of assessable profits is taxed at **8.25%**, and the remainder at **16.5%**[21](index=21&type=chunk) Income Tax Expense (For the six months ended June 30) | Type of Tax | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 218 | 87 | [Trade and Loan Receivables and Other Receivables](index=12&type=section&id=Trade%20and%20Loan%20Receivables%20and%20Other%20Receivables) As of June 30, 2025, the Group's trade and loan receivables and other receivables increased to HK$938,827 thousand, driven by margin client and loan growth, while impairment provisions decreased Trade and Loan Receivables and Other Receivables (As of June 30) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables arising from securities brokerage business (net of loss allowance) | 636,296 | 543,203 | | Trade receivables arising from corporate advisory, financial advisory and asset management services (net of loss allowance) | 7,738 | 9,450 | | Loan receivables and interest (net of loss allowance) | 232,782 | 181,313 | | Other receivables (net of loss allowance) | 62,011 | 169,278 | | **Total** | **938,827** | **903,244** | - Trade receivables from margin clients amounted to **HK$549,743 thousand**, with **26%** of total outstanding margin loans from the largest margin client and **81%** from the top five margin clients[27](index=27&type=chunk)[29](index=29&type=chunk) - Loan receivables and interest increased from **HK$181,313 thousand** to **HK$232,782 thousand**, with the largest borrower and top five borrowers accounting for **22%** and **67%** of the total, respectively[28](index=28&type=chunk)[35](index=35&type=chunk) - Impairment loss allowance for margin loan receivables significantly decreased from **HK$36,905 thousand** to **HK$435 thousand**[27](index=27&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables significantly increased to HK$59,681 thousand from HK$24,883 thousand on December 31, 2024, primarily due to a substantial rise in trade payables to cash and margin clients from securities brokerage business Trade and Other Payables (As of June 30) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables arising from securities brokerage business – cash clients | 37,167 | 4,676 | | Trade payables arising from securities brokerage business – margin clients | 13,813 | 607 | | Trade payables arising from options brokerage business | 209 | 209 | | Trade payables arising from futures contract trading business | 1,407 | 1,404 | | Secured margin loans for securities brokerage | – | 12,201 | | Other payables and accrued charges | 7,085 | 5,786 | | Rental deposits received | 1,616 | 2,896 | | **Total Current Portion** | **59,681** | **24,883** | - Trade payables to cash clients increased from **HK$4,676 thousand** to **HK$37,167 thousand**[36](index=36&type=chunk) - Trade payables to margin clients increased from **HK$607 thousand** to **HK$13,813 thousand**[36](index=36&type=chunk) [Share Capital](index=17&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital increased to HK$96,053 thousand, primarily due to the issuance of 15,000,000 consideration shares for the acquisition of Warpdrive Technology Limited Share Capital Movement (As of June 30) | Item | Number of Shares | Share Capital (HK$ thousand) | | :--- | :--- | :--- | | January 1, 2024, December 31, 2024 and January 1, 2025 | 945,527,675 | 94,553 | | Issue of consideration shares for acquisition of subsidiary | 15,000,000 | 1,500 | | **June 30, 2025** | **960,527,675** | **96,053** | - On June 26, 2025, the company issued **15,000,000** ordinary shares for the acquisition of Warpdrive Technology Limited, totaling **HK$29,850,000**[39](index=39&type=chunk) - The acquisition was completed in July 2025[39](index=39&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Performance Review](index=18&type=section&id=Overall%20Performance%20Review) The Group achieved a turnaround to profit in H1 2025, recording a profit before tax of HK$104,600 thousand, driven by net fair value gains on financial assets at fair value through profit or loss, reversal of impairment loss on margin loan receivables, and share of profits from associates, despite negative impact from fair value loss on investment properties - Total revenue for the period was approximately **HK$45,300 thousand**, a **15.2%** decrease from the previous period[41](index=41&type=chunk) - The Group recorded a consolidated profit before tax of approximately **HK$104,600 thousand** (2024: loss of approximately **HK$94,200 thousand**)[41](index=41&type=chunk) - Profit attributable to owners of the company was approximately **HK$107,700 thousand** (2024: loss of approximately **HK$91,100 thousand**)[41](index=41&type=chunk) - Profit primarily derived from: net fair value gain on financial assets at fair value through profit or loss of approximately **HK$79,100 thousand**; reversal of impairment loss on margin loan receivables of approximately **HK$36,500 thousand**; and share of profits from associates of approximately **HK$44,400 thousand**[44](index=44&type=chunk) - Net fair value loss on investment properties of approximately **HK$67,000 thousand** negatively impacted performance[44](index=44&type=chunk) [Business Segment Review](index=19&type=section&id=Business%20Segment%20Review) The Group's business segments showed varied performance in H1 2025: financial services saw profit growth despite revenue decline due to impairment reversal; credit and lending revenue and profit increased with loan growth; other financial services recorded a loss due to increased competition and costs; property investment and leasing's loss widened from fair value loss; and tactical and strategic investments achieved significant profit from associate profits and financial asset fair value gains [Financial Services — Licensed under Securities and Futures Ordinance](index=19&type=section&id=Financial%20Services%20%E2%80%94%20Licensed%20under%20Securities%20and%20Futures%20Ordinance) Segment revenue decreased by 64.5% to HK$13,900 thousand, mainly due to a drop in margin loan interest income from HK$35,600 thousand to HK$6,000 thousand, but segment profit increased from HK$22,600 thousand to HK$46,600 thousand due to reversal of impairment loss on margin loan receivables, and the company expanded its license scope by obtaining a Type 3 (leveraged foreign exchange trading) license - Interest income from margin loans decreased from approximately **HK$35,600 thousand** to approximately **HK$6,000 thousand**, primarily due to a reduction in margin loan interest rates from **8%** to **2%**[46](index=46&type=chunk) - Revenue from institutional financing advisory services increased to approximately **HK$3,600 thousand** (2024: approximately **HK$1,800 thousand**), mainly driven by stock market recovery[46](index=46&type=chunk) - Segment revenue was approximately **HK$13,900 thousand**, a **64.5%** decrease from approximately **HK$39,100 thousand** in the previous period[47](index=47&type=chunk) - Segment profit increased from **HK$22,600 thousand** to **HK$46,600 thousand**, primarily due to the reversal of impairment loss on margin loan receivables[47](index=47&type=chunk) - Successfully applied for and obtained a Type 3 (leveraged foreign exchange trading) license to further expand this segment[47](index=47&type=chunk) [Credit and Lending Services — Licensed under Money Lenders Ordinance](index=20&type=section&id=Credit%20and%20Lending%20Services%20%E2%80%94%20Licensed%20under%20Money%20Lenders%20Ordinance) Segment revenue increased from HK$1,600 thousand to HK$2,300 thousand, driven by increased lending in a low-interest environment, with segment profit rising from HK$400 thousand to HK$2,400 thousand; total loan receivables grew to HK$232,800 thousand, while impairment provisions decreased to HK$600 thousand - Segment revenue increased from approximately **HK$1,600 thousand** to approximately **HK$2,300 thousand**, primarily due to increased lending driven by a low-interest rate environment[49](index=49&type=chunk) - Segment profit increased from approximately **HK$400 thousand** to approximately **HK$2,400 thousand**[49](index=49&type=chunk) - As of June 30, 2025, total principal and accrued interest were approximately **HK$232,800 thousand**, a significant increase from approximately **HK$119,000 thousand** as of June 30, 2024[49](index=49&type=chunk) - Impairment provision for outstanding loan receivables was approximately **HK$600 thousand** (June 30, 2024: approximately **HK$2,000 thousand**)[50](index=50&type=chunk) [Other Financial Services](index=21&type=section&id=Other%20Financial%20Services) Segment revenue decreased from HK$7,200 thousand to HK$6,300 thousand, resulting in a loss of approximately HK$1,000 thousand (2024: profit of approximately HK$2,000 thousand), mainly due to intensified market competition, extended case processing times, and increased operating and staff costs - Segment revenue was approximately **HK$6,300 thousand** (2024: approximately **HK$7,200 thousand**)[51](index=51&type=chunk) - The segment recorded a loss of approximately **HK$1,000 thousand** (2024: profit of approximately **HK$2,000 thousand**)[51](index=51&type=chunk) - The decrease in consulting service income primarily reflects intensified competition and extended case processing times[51](index=51&type=chunk) - Administrative expenses increased due to higher operating and staff costs[51](index=51&type=chunk) [Property Investment and Leasing](index=21&type=section&id=Property%20Investment%20and%20Leasing) Segment revenue slightly decreased to HK$5,500 thousand, and segment loss significantly widened from HK$11,600 thousand to HK$67,800 thousand, primarily due to an increase of HK$67,000 thousand in fair value loss on investment properties amidst a weak local property market; the Group holds four commercial properties with a total fair value of HK$340,500 thousand - Segment revenue was approximately **HK$5,500 thousand** (2024: approximately **HK$5,700 thousand**), a slight decrease mainly due to financial difficulties of a tenant[52](index=52&type=chunk) - Segment loss was approximately **HK$67,800 thousand** (2024: approximately **HK$11,600 thousand**), with the increase primarily due to an increase of **HK$67,000 thousand** in fair value loss on investment properties[52](index=52&type=chunk) - As of June 30, 2025, the Group held **4** commercial properties with a total fair value of **HK$340,500 thousand** (June 30, 2024: approximately **HK$495,800 thousand**)[52](index=52&type=chunk) [Tactical and Strategic Investments](index=21&type=section&id=Tactical%20and%20Strategic%20Investments) Segment revenue was approximately HK$97,000 thousand, and segment profit turned from a loss of HK$88,200 thousand to a profit of HK$140,400 thousand, primarily driven by a share of profits from associates of approximately HK$44,400 thousand (prior period loss of HK$46,400 thousand) and net fair value gains on financial assets at fair value through profit or loss of approximately HK$79,100 thousand (prior period loss of HK$39,900 thousand) - Resources allocated to this segment (financial assets at fair value through profit or loss) for the period were approximately **HK$189,500 thousand** (December 31, 2024: approximately **HK$110,300 thousand**)[53](index=53&type=chunk) - Segment revenue was approximately **HK$97,000 thousand** (2024: approximately **HK$1,000 thousand**)[53](index=53&type=chunk) - Segment profit was approximately **HK$140,400 thousand** (2024: loss of approximately **HK$88,200 thousand**)[53](index=53&type=chunk) - Primarily due to share of profits from associates of approximately **HK$44,400 thousand** (2024: loss of approximately **HK$46,400 thousand**) and net fair value gain on financial assets at fair value through profit or loss of approximately **HK$79,100 thousand** (2024: loss of approximately **HK$39,900 thousand**)[53](index=53&type=chunk) [Future Outlook and Strategies](index=22&type=section&id=Future%20Outlook%20and%20Strategies) The company is actively exploring investment opportunities for long-term growth and higher shareholder returns, including venturing into AI chip and semiconductor business through the acquisition of Warpdrive Technology Limited, while also consolidating its integrated financial services and expanding into innovative technology-driven financial services like cryptocurrency financing, investment, and trading to capitalize on Hong Kong's fintech opportunities - The company acquired Warpdrive Technology Limited, venturing into the AI chip and semiconductor business development sector[54](index=54&type=chunk) - Integrating Warpdrive's AI chip R&D and commercialization capabilities will help the Group diversify beyond financial services[54](index=54&type=chunk) - Committed to consolidating integrated financial services and expanding into innovative technology-driven financial services, such as cryptocurrency financing, investment, and trading[54](index=54&type=chunk) - The Board believes that focusing on AI chip business development and fintech-related services will create significant long-term value for shareholders[54](index=54&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) The Group's financial performance significantly improved in H1 2025, with substantial growth in net assets and cash and cash equivalents, and a decrease in the gearing ratio, indicating stronger financial health and liquidity, despite a decline in total revenue, which was offset by a significant increase in other comprehensive income [Revenue](index=22&type=section&id=Revenue) Overall revenue for the period was approximately HK$45,300 thousand, a decrease of approximately HK$8,100 thousand from the prior period; financial services income (including other financial services) totaled approximately HK$19,700 thousand, lending business interest income increased to HK$2,300 thousand, rental income slightly decreased, and tactical and strategic business revenue reached HK$17,900 thousand due to disposal of financial assets - Overall revenue for the period was approximately **HK$45,300 thousand**, a decrease of approximately **HK$8,100 thousand** from the previous period[55](index=55&type=chunk) - Financial services income (including other financial services) totaled approximately **HK$19,700 thousand** (2024: approximately **HK$46,200 thousand**)[55](index=55&type=chunk) - Lending business interest income increased to approximately **HK$2,300 thousand** (2024: approximately **HK$1,600 thousand**)[55](index=55&type=chunk) - Tactical and strategic business revenue was approximately **HK$17,900 thousand** (2024: zero), mainly due to the disposal of certain financial assets[55](index=55&type=chunk) [Other Comprehensive Income](index=23&type=section&id=Other%20Comprehensive%20Income) The Group recorded other comprehensive income of approximately HK$35,100 thousand for the period, a significant improvement from a loss of approximately HK$67,300 thousand in the prior year, primarily due to the share of other comprehensive income recognized by an associate of approximately HK$26,800 thousand - Other comprehensive income for the period was approximately **HK$35,100 thousand** (2024: loss of approximately **HK$67,300 thousand**)[56](index=56&type=chunk) - Primarily due to the share of other comprehensive income recognized by an associate of approximately **HK$26,800 thousand** (2024: expense of approximately **HK$900 thousand**)[56](index=56&type=chunk) [Net Assets](index=23&type=section&id=Net%20Assets) As of June 30, 2025, the Group's unaudited consolidated net assets were approximately HK$1,762,400 thousand, an increase of approximately HK$165,500 thousand from the end of the previous financial year, with unaudited consolidated net assets per share at approximately HK$1.83 - As of June 30, 2025, unaudited consolidated net assets were approximately **HK$1,762,400 thousand**, an increase of approximately **HK$165,500 thousand** from the end of the previous financial year[57](index=57&type=chunk) - Unaudited consolidated net assets per share were approximately **HK$1.83**[57](index=57&type=chunk) [Capital Structure](index=23&type=section&id=Capital%20Structure) The Group's capital expenditures and investments are primarily funded by cash on hand, internally generated funds, and bank loans, maintaining a conservative financial policy with cash mostly held in short-term HKD deposits and no hedging instruments used - Capital expenditures and investments are primarily funded by cash on hand, internally generated funds, and bank loans[58](index=58&type=chunk) - The Group has consistently adopted a conservative financial policy in cash and financial management[58](index=58&type=chunk) - Cash is generally held in short-term deposits, with the majority denominated in HKD[58](index=58&type=chunk) - The Group does not use any financial instruments for hedging purposes[58](index=58&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's cash and cash equivalents (excluding trust and segregated accounts) increased to approximately HK$100,100 thousand, with total cash and cash equivalents and financial assets at fair value through profit or loss (current) amounting to approximately HK$184,900 thousand; the liquidity ratio of 3.7 indicates strong liquidity, and total bank loans decreased - As of June 30, 2025, cash and cash equivalents (excluding trust and segregated accounts) were approximately **HK$100,100 thousand** (December 31, 2024: approximately **HK$39,300 thousand**)[59](index=59&type=chunk) - Total cash and cash equivalents and financial assets at fair value through profit or loss (classified as current assets) amounted to approximately **HK$184,900 thousand** (December 31, 2024: approximately **HK$100,200 thousand**)[59](index=59&type=chunk) - The current ratio was **3.7** (December 31, 2024: **3.9**), indicating very strong liquidity[59](index=59&type=chunk) - Total bank loans amounted to approximately **HK$218,300 thousand** (December 31, 2024: approximately **HK$227,900 thousand**)[59](index=59&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging](index=23&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) Due to the Group's primary income, expenses, assets, and bank deposits being denominated in HKD and USD, and the USD peg, exchange rate fluctuation risk is extremely low, and no hedging instruments are employed - The Group's primary sources of income, expenses, major assets, and bank deposits are denominated in HKD and USD[60](index=60&type=chunk) - Due to the USD peg, the Group's exchange rate fluctuation risk is very low[60](index=60&type=chunk) - The Group does not have any related hedging instruments[60](index=60&type=chunk) [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio decreased to 12.8% from 14.9% on December 31, 2024, primarily due to an increase in shareholders' equity - As of June 30, 2025, the gearing ratio was **12.8%** (December 31, 2024: **14.9%**)[61](index=61&type=chunk) - The decrease in gearing ratio was primarily due to an increase in shareholders' equity[61](index=61&type=chunk) - Net debt is calculated as interest-bearing loans plus other payables and accrued charges, less cash and cash equivalents[61](index=61&type=chunk) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities, consistent with the prior period - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[62](index=62&type=chunk) [Pledge of Group Assets](index=24&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, the Group pledged investment properties with a carrying value of approximately HK$308,500 thousand as collateral for general banking facilities, a decrease from HK$359,800 thousand on December 31, 2024 - As of June 30, 2025, the Group pledged investment properties with a carrying value of approximately **HK$308,500 thousand** (December 31, 2024: approximately **HK$359,800 thousand**) as collateral for general banking facilities granted to the Group[63](index=63&type=chunk) [Significant Investments](index=24&type=section&id=Significant%20Investments) The Group's significant investments include equity stakes in Green River Associates Limited and HEC Securities Company Limited, both associates aimed at long-term value creation, with Green River Marshall primarily engaged in securities investment and HEC Securities in investment holding and securities investment for credit financing; Green River Marshall contributed significant profit, while HEC Securities recorded a loss during the period - Green River Marshall: The Group holds approximately **47.8%** of its total issued share capital, with a carrying value of approximately **HK$215,500 thousand**, accounting for approximately **10.5%** of total assets; share of profit for the period was approximately **HK$44,500 thousand**[64](index=64&type=chunk)[67](index=67&type=chunk) - HEC Securities: The Group holds approximately **33.0%** of its total issued share capital, with a carrying value of approximately **HK$102,800 thousand**, accounting for approximately **5%** of total assets; share of loss for the period was approximately **HK$100 thousand**[65](index=65&type=chunk)[67](index=67&type=chunk) - These investments aim to create long-term value, providing stability and diversification[66](index=66&type=chunk) - The Group also holds a diversified portfolio of financial assets at fair value through profit or loss (including equity investments in **14** Hong Kong listed companies) with a total carrying value of **HK$196,000 thousand**, but each investment is less than **5%** of total assets and not considered significant[68](index=68&type=chunk) [Significant Events After Reporting Period](index=25&type=section&id=Significant%20Events%20After%20Reporting%20Period) After the reporting period, the company completed the acquisition of all equity in Warpdrive Technology Limited by issuing 15,000,000 ordinary shares, aiming to enter the AI chip and semiconductor business, and Mr. Dai Bin and Mr. Wong Kin Chun were appointed as executive directors - On May 8, 2025, Planetree Lavie Limited, a wholly-owned subsidiary of the company, entered into a sale and purchase agreement with Mr. Dai Bin to acquire the entire equity interest in Warpdrive Technology Limited[69](index=69&type=chunk) - The acquisition was completed in July 2025 through the allotment and issue of **15,000,000** ordinary shares of the company as consideration[69](index=69&type=chunk) - Mr. Dai Bin and Mr. Wong Kin Chun were appointed as executive directors of the company effective July 21, 2025, and August 22, 2025, respectively[69](index=69&type=chunk) [Additional Information](index=26&type=section&id=Additional%20Information) [Review of Financial Statements](index=26&type=section&id=Review%20of%20Financial%20Statements) The Group's unaudited condensed consolidated financial statements for the period have been reviewed by the auditor, RSM Hong Kong, in accordance with HKSRE 2410, and also reviewed and discussed by the company's audit committee - The unaudited condensed consolidated financial statements for the period have been reviewed by the company's auditor, RSM Hong Kong, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[70](index=70&type=chunk) - The company's audit committee has reviewed the accounting principles and practices adopted by the Group and discussed financial reporting matters[70](index=70&type=chunk) [Human Resources Practices](index=26&type=section&id=Human%20Resources%20Practices) The Group's remuneration policy aims to provide fair and competitive treatment to attract and retain talent, determined by business needs, industry practices, market and economic conditions, and individual performance; as of June 30, 2025, the Group had 36 staff members and offered benefits including MPF, medical insurance, and discretionary training subsidies - Remuneration policy ensures fair and competitive treatment based on business needs and industry practices[71](index=71&type=chunk) - Remuneration is determined considering factors such as market and economic conditions, inflation, employment terms for other positions within the Group, and remuneration paid by comparable companies[71](index=71&type=chunk) - As of June 30, 2025, the Group had **36** staff members (including all directors)[71](index=71&type=chunk) - Other employee benefits provided include MPF, medical insurance, and discretionary training subsidies[71](index=71&type=chunk) [Compliance with Corporate Governance Code](index=26&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to maintaining high standards of corporate governance practices and complied with all code provisions of Appendix C1 Part 2 of the Listing Rules' Corporate Governance Code during the period - The company is committed to achieving and maintaining high standards of corporate governance practices[72](index=72&type=chunk) - During the period, the company complied with all code provisions contained in Appendix C1 Part 2 of the Corporate Governance Code under the Listing Rules of the Stock Exchange[72](index=72&type=chunk) [Compliance with Model Code](index=27&type=section&id=Compliance%20with%20Model%20Code) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and each director confirmed compliance with the code during the period after specific inquiry - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[73](index=73&type=chunk) - Each director confirmed that they have complied with the required standards set out in the Model Code during the period[73](index=73&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[74](index=74&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=27&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the company's website and the Stock Exchange's designated issuer website, and the 2025 interim report will be dispatched to shareholders and published on these websites in September 2025 - This results announcement is published on the company's website (www.planetreeintl.com) and the Stock Exchange's designated issuer website (www.hkexnews.hk)[75](index=75&type=chunk) - The 2025 interim report will be dispatched to the company's shareholders and published on the aforementioned websites in September 2025[75](index=75&type=chunk) [Acknowledgement](index=27&type=section&id=Acknowledgement) The Board extends its sincere gratitude and appreciation to the management and all staff for their efforts and contributions to the company during the period - The Board extends its sincere gratitude and appreciation to the management and all staff for their efforts and contributions to the company during the period[76](index=76&type=chunk)

[Company Information and Report Overview](index=1&type=section&id=Company%20Information%20and%20Report%20Overview) This section provides an overview of the company, the basis for financial statement preparation, and changes in accounting policies [Company Profile](index=5&type=section&id=General%20Information) Century Legend (Holdings) Limited is an investment holding company with diverse subsidiaries engaged in property investment, hair salons, hospitality, property project management, lending, and securities investment - The company primarily engages in investment holding, with diversified subsidiary businesses including property investment, hair salons, hotels, property project management, lending, and securities investment[8](index=8&type=chunk) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The unaudited interim financial statements, reviewed by the Audit Committee, are prepared in accordance with HKFRS and HKAS 34, measured at historical cost, and presented in HKD - The interim financial statements are unaudited but reviewed by the Audit Committee, comply with HKAS 34, and are presented in HKD[9](index=9&type=chunk)[10](index=10&type=chunk) [Changes in Accounting Policies and Estimates](index=6&type=section&id=Adoption%20of%20New%2FRevised%20HKFRSs) The Group adopted amendments to HKAS 21 "Lack of Exchangeability" in 2025, which had no impact on performance or financial position, with significant judgments and estimates remaining consistent with 2024 - Amendments to HKAS 21 adopted in 2025 had no impact on the Group's performance or financial position[11](index=11&type=chunk) - Significant judgments and estimates used in preparing the statements are consistent with those applied in the 2024 annual financial statements[12](index=12&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) This section details the Group's financial results, including comprehensive income, financial position, profit before tax, earnings per share, and key account balances [Condensed Consolidated Statement of Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group achieved a profit of HKD 2,095,000, a significant improvement from the prior year's net loss, primarily due to fair value gains on financial assets Key Data from Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 22,151 | 23,767 | | Cost of sales | (15,310) | (15,556) | | Gross profit | 6,841 | 8,211 | | Other income | 366 | 559 | | Fair value gains/(losses) on financial assets at fair value through profit or loss | 16,405 | (11,980) | | Fair value loss on investment properties | (5,800) | (4,000) | | Administrative expenses | (12,967) | (13,998) | | Finance costs | (2,750) | (3,757) | | Profit/(Loss) before income tax | 2,095 | (24,965) | | Income tax credit | – | 384 | | Profit/(Loss) for the period | 2,095 | (24,581) | - Total comprehensive income for the period turned from a loss of **HKD 24,553,000** in the same period of 2024 to a profit of **HKD 2,095,000** in 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly increased, non-current assets slightly decreased, while current assets grew, leading to a narrowed net current liabilities and improved net assets and equity attributable to owners Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current assets | 309,575 | 315,685 | | Current assets | 70,558 | 64,146 | | Current liabilities | 146,642 | 146,103 | | Net current liabilities | (76,084) | (81,957) | | Net assets | 222,748 | 220,653 | | Equity attributable to owners of the Company | 223,849 | 221,297 | | Total equity | 222,748 | 220,653 | - Net current liabilities narrowed from **HKD 81,957,000** as of December 31, 2024, to **HKD 76,084,000** as of June 30, 2025[7](index=7&type=chunk) [Profit/(Loss) Before Income Tax](index=11&type=section&id=Profit%2F%28Loss%29%20Before%20Income%20Tax) The period's profit before income tax was primarily influenced by a significant increase in fair value gains on financial assets at fair value through profit or loss (HKD 16,405,000), contrasting with a loss in the prior year, alongside a decrease in finance costs Composition of Profit/(Loss) Before Income Tax (Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest expense on bank loans | 2,447 | 3,508 | | Interest expense on lease liabilities | 303 | 249 | | Total finance costs | 2,750 | 3,757 | | Fair value (gains)/losses on financial assets at fair value through profit or loss | (16,405) | 11,980 | | Depreciation | 5,582 | 6,207 | - Total finance costs decreased by **26.8%** year-on-year, from **HKD 3,757,000** to **HKD 2,750,000**[22](index=22&type=chunk) [Income Tax Credit](index=11&type=section&id=Income%20Tax%20Credit) The Group had no assessable profit during the reporting period, resulting in no Hong Kong profits tax provision, and no deferred tax assets were recognized due to uncertainty regarding their realization - The Group had no assessable profit during the reporting period, and no Hong Kong profits tax provision was made[23](index=23&type=chunk) - No deferred tax assets were recognized due to uncertainty regarding their realization[23](index=23&type=chunk) [Earnings/(Loss) Per Share](index=11&type=section&id=Earnings%2F%28Loss%29%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic earnings per share attributable to owners of the Company was **0.78 HK cents**, a significant improvement from the prior year's loss of **7.38 HK cents** per share, primarily due to the period's profit Earnings/(Loss) Per Share (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 0.78 HK cents | (7.38) HK cents | | Diluted earnings/(loss) per share | 0.78 HK cents | (7.38) HK cents | - Basic earnings per share turned from a loss of **HKD 24,079,000** in the same period last year to a profit of **HKD 2,552,000** in the current period[25](index=25&type=chunk) [Loans Receivable and Other Receivables, Deposits and Prepayments](index=12&type=section&id=Loans%20Receivable%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2025, total loans receivable and other receivables, deposits, and prepayments amounted to **HKD 8,638,000**, slightly lower than **HKD 8,896,000** as of December 31, 2024 Loans Receivable and Other Receivables, Deposits and Prepayments (As of June 30) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Loans receivable | 1,942 | 2,642 | | Other receivables | 1,676 | 1,304 | | Prepayments | 667 | 601 | | Deposits | 4,353 | 4,349 | | Total | 8,638 | 8,896 | [Trade Payables](index=12&type=section&id=Trade%20Payables) As of June 30, 2025, the Group's total trade payables were **HKD 48,000**, a decrease from **HKD 76,000** as of December 31, 2024 Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0-30 days | 37 | 52 | | 31-60 days | 11 | 20 | | 61-90 days | – | 4 | | Total | 48 | 76 | [Business Review and Segment Information](index=6&type=section&id=Business%20Review%20and%20Segment%20Information) This section reviews the Group's overall performance, macroeconomic environment, and detailed performance across its six operating segments, including revenue, results, assets, liabilities, and geographical information [Overall Performance Review](index=13&type=section&id=Overall%20Performance) The Group's turnover decreased by **7%** to **HKD 22,151,000** and gross profit decreased by **17%** to **HKD 6,841,000** year-on-year, but the period saw a turnaround from net loss to a net profit of **HKD 2,095,000**, driven by fair value gains from securities investments and reduced administrative and finance costs Overall Performance Overview (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Turnover | 22,151 | 23,767 | -7% | | Gross profit | 6,841 | 8,211 | -17% | | Profit/(Loss) for the period | 2,095 | (24,581) | Turned from loss to profit | | Fair value gains/(losses) on financial assets at fair value through profit or loss | 16,405 | (11,980) | Significant improvement | | Reduction in administrative expenses and finance costs | 2,038 | - | - | [Macroeconomic Environment](index=13&type=section&id=Macroeconomic%20Environment) The first half of 2025 presented a challenging global economic landscape with geopolitical tensions and US trade policies impacting the outlook, while Hong Kong and Macau faced retail and real estate challenges, but saw moderate GDP growth and a rebound in Macau's GDP, respectively, with strong securities market performance and declining finance costs - The global economic environment remains challenging, with ongoing geopolitical tensions and impacts from US trade policies[29](index=29&type=chunk) - Hong Kong's GDP grew by **3%** and **3.1%** year-on-year in Q1 and Q2 respectively; Macau's GDP decreased by **1.3%** in Q1 but rebounded to **5.1%** in Q2[29](index=29&type=chunk) - Securities investments showed significant valuation gains, with strong trading volumes in Hong Kong's capital market and outstanding performance in the US stock market[30](index=30&type=chunk) - Finance costs decreased by approximately **27%**, mainly due to the federal funds rate stabilizing from **5.25%-5.5%** to **4.25%-4.5%**[30](index=30&type=chunk) [Revenue and Segment Information](index=6&type=section&id=Revenue%20and%20Segment%20Information) The Group's business is divided into six operating segments: hair salons, hotel and hospitality services, property investment, securities investment, property project management, and lending, with significant variations in revenue and performance, notably the securities investment segment turning from loss to profit and contributing most to overall Group performance - The Group identifies six operating segments: hair salons, hotel and hospitality services, property investment, securities investment, property project management, and lending[14](index=14&type=chunk) [Segment Revenue and Results](index=8&type=section&id=Segment%20Revenue%20and%20Results) The Group's total revenue for the period was **HKD 22,151,000**, a **7%** year-on-year decrease, with the securities investment segment's performance turning from a loss of **HKD 10,544,000** in the prior year to a profit of **HKD 17,431,000**, serving as the primary driver for the Group's overall positive performance Segment Revenue and Results (Six Months Ended June 30) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | 2025 Results (HKD thousands) | 2024 Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Hair Salon | 6,174 | 6,520 | 34 | 8 | | Hotel and Hospitality Services | 13,439 | 14,200 | (204) | (547) | | Property Investment | 1,473 | 1,578 | (8,512) | (6,609) | | Securities Investment | 1,027 | 1,428 | 17,431 | (10,544) | | Property Project Management | – | – | (3) | (5) | | Lending | 38 | 41 | (8) | (6) | | Total | 22,151 | 23,767 | 8,738 | (17,703) | - The securities investment segment's performance turned from a loss of **HKD 10,544,000** in the first half of 2024 to a profit of **HKD 17,431,000** in the first half of 2025[15](index=15&type=chunk) [Segment Assets and Liabilities](index=9&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total consolidated assets slightly increased to **HKD 380,133,000**, with hotel and hospitality services and property investment segments accounting for a significant portion of assets, while total consolidated liabilities slightly decreased Segment Assets and Liabilities (As of June 30) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total segment assets | 372,867 | 369,316 | | Total consolidated assets | 380,133 | 379,831 | | Total segment liabilities | 51,700 | 52,156 | | Total consolidated liabilities | 157,385 | 159,178 | - Assets for the hotel and hospitality services segment were **HKD 226,180,000**, and for the property investment segment were **HKD 85,363,000**, together accounting for the majority of total segment assets[17](index=17&type=chunk) [Other Segment Information](index=10&type=section&id=Other%20Segment%20Information) For the period, total interest income was **HKD 36,000**, fair value loss on investment properties was **HKD 5,800,000**, total finance costs were **HKD 2,750,000**, and total depreciation was **HKD 5,582,000** Other Segment Information (Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 36 | 56 | | Fair value loss on investment properties | 5,800 | 4,000 | | Finance costs | 2,750 | 3,757 | | Additions to specified non-current assets | 9 | 64 | | Depreciation | 5,582 | 6,207 | [Geographical Information](index=10&type=section&id=Geographical%20Information) The Group's specified non-current assets are primarily located in Hong Kong (**HKD 235,088,000**) and Macau (**HKD 73,521,000**), with revenue from external customers also mainly derived from Hong Kong (**HKD 20,933,000**) and Macau (**HKD 1,218,000**) Specified Non-Current Assets and Revenue from External Customers (By Geographical Area) | Region | Specified Non-Current Assets as of June 30, 2025 (HKD thousands) | Revenue from External Customers in 2025 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 235,088 | 20,933 | | Macau | 73,521 | 1,218 | | Total | 308,609 | 22,151 | [Performance of Each Business Segment](index=14&type=section&id=Performance%20of%20Each%20Business%20Segment) The Group's business segments showed varied performance: property investment saw decreased rental income and valuation losses; hair salon business had lower turnover but increased segment profit; hotel and hospitality services experienced reduced turnover but narrowed losses; securities investment recorded significant fair value gains due to favorable market conditions; property project management had no revenue; and lending business saw slight decreases in interest income and operating loss [Property Investment Business](index=14&type=section&id=Property%20Investment%20Business) The property investment business contributed **HKD 1,473,000** in rental income for the first half, a **7%** year-on-year decrease primarily due to the sale of a Taikoo Shing property, while investment properties in Hong Kong and Macau recorded a valuation loss of **HKD 5,800,000**, with retail shops accounting for approximately **70%** of the loss, and Macau's residential leasing market showing positive performance - Rental income was **HKD 1,473,000**, a **7%** year-on-year decrease, mainly due to the sale of a Taikoo Shing property[31](index=31&type=chunk) - Investment properties recorded a valuation loss of **HKD 5,800,000**, with retail shop losses accounting for approximately **70%**[31](index=31&type=chunk) - Macau's residential leasing market performed positively, with new lease rents increasing by approximately **5%**[33](index=33&type=chunk) [Hair Salon Business](index=15&type=section&id=Hair%20Salon%20Business) The hair salon business generated **HKD 6,174,000** in turnover, a **5%** year-on-year decrease, but segment profit increased to **HKD 34,000**, mainly due to reduced interest expenses and staff long service payment provisions, as the business addresses talent outflow, northbound consumption, and emigration impacts through digital marketing and expanding hair extension and scalp care services Hair Salon Business Performance (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Turnover | 6,174 | 6,520 | | Segment profit | 34 | 8 | - Segment profit increased by approximately **three times** year-on-year, primarily due to reduced revenue, lower interest expenses on right-of-use assets, and decreased provisions for staff long service payments[34](index=34&type=chunk) - Addressing declining turnover through digital marketing, social media promotion, and expanding hair extension and scalp care services[35](index=35&type=chunk)[36](index=36&type=chunk) [Hotel and Hospitality Services Business](index=17&type=section&id=Hotel%20and%20Hospitality%20Services%20Business) The hotel and hospitality services business recorded **HKD 13,439,000** in turnover, a **5%** year-on-year decrease, but net loss narrowed by **63%** to **HKD 204,000**, mainly due to reduced depreciation of right-of-use assets for the North Point hostel, as Hong Kong's tourism recovers amidst challenges of declining average room rates and increased accommodation tax Hotel and Hospitality Services Business Performance (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Turnover | 13,439 | 14,200 | | Net loss | (204) | (547) | - Net loss narrowed by **63%**, primarily due to a significant reduction in depreciation of right-of-use assets for the North Point hostel[38](index=38&type=chunk) - Hong Kong's tourism industry shows strong momentum, receiving approximately **23.6 million** visitors in the first half, a **11.7%** year-on-year increase[39](index=39&type=chunk) - The hotel industry faces challenges of increased occupancy rates but declining average room rates, with the re-imposition of hotel accommodation tax adding cost pressure[40](index=40&type=chunk) [Securities Investment Business](index=18&type=section&id=Securities%20Investment%20Business) As of June 30, 2025, the securities investment business held financial assets of approximately **HKD 53,635,000**, recording a fair value gain of **HKD 16,405,000** for the period, a significant improvement from the prior year's loss of **HKD 11,980,000**, primarily driven by substantial increases in the market value of Hong Kong and US listed securities, with the Group divesting underperforming securities and investing in high-growth US technology and innovation stocks for diversification Key Data from Securities Investment Business (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Fair value gains/(losses) on financial assets at fair value through profit or loss | 16,405 | (11,980) | | Total dividend income from this segment | 1,473 | - | | Fair value of Link Real Estate Investment Trust | 29,377 | - | | Fair value of Palantir Technologies Inc. | 24,084 | - | - The Hong Kong Hang Seng Index rose over **20%** from the beginning of the year, reaching a three-and-a-half-year high, with Hong Kong becoming one of the world's largest IPO markets[43](index=43&type=chunk) - The Group divested some underperforming securities and invested in US stocks in high-growth sectors like technology and innovation to diversify its investment portfolio[43](index=43&type=chunk)[44](index=44&type=chunk) [Property Project Management Business](index=20&type=section&id=Property%20Project%20Business) The property project management business generated no revenue for the period, incurring a segment loss of **HKD 3,000**, with the Group planning to revitalize this business by collaborating with local renowned architects/interior designers to explore new projects - No revenue for the period, with a segment loss of **HKD 3,000**[46](index=46&type=chunk) - Plans to revitalize this business segment by seeking collaborations with local renowned architects/interior designers to explore more new projects[46](index=46&type=chunk) [Other Business Segment (Lending)](index=20&type=section&id=Other%20Business%20Segment) The lending business generated **HKD 38,000** in interest income and incurred an operating loss of **HKD 8,000**, with a new short-term loan initiated and completed during the period, and no impairment recognized on outstanding loans receivable, as the Group adopts a prudent approach to managing its loan portfolio and diversifying credit risk Lending Business Performance (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 38 | 41 | | Operating loss | (8) | (6) | - A new short-term loan was initiated and completed during the period, with no impairment recognized on outstanding loans receivable[47](index=47&type=chunk) [Financial Position and Management](index=21&type=section&id=Financial%20Position%20and%20Management) This section covers the Group's liquidity, financial resources, treasury policies, foreign exchange risk, asset pledges, contingent liabilities, capital commitments, material investments, capital structure, and employee remuneration policies [Liquidity and Financial Resources](index=21&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and bank balances were **HKD 8,417,000**, with net current liabilities of **HKD 76,084,000**, and the current ratio improved to approximately **0.48** from the end of last year Liquidity and Financial Resources (As of June 30) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash and bank balances | 8,417 | 12,410 | | Net current liabilities | (76,084) | (81,957) | | Current ratio | 0.48 | 0.44 | - The current ratio improved from **0.44** as of December 31, 2024, to **0.48** as of June 30, 2025, indicating improved liquidity[50](index=50&type=chunk) [Financial Management, Treasury Policy and Foreign Exchange Risk](index=21&type=section&id=Financial%20Management%2C%20Treasury%20Policy%20and%20Foreign%20Exchange%20Risk) There were no significant changes in the Group's financial management, treasury policies, and foreign exchange risk compared to the information disclosed in the 2024 annual report - No significant changes in financial management, treasury policy, and foreign exchange risk compared to the 2024 annual report[51](index=51&type=chunk) [Pledge of Assets](index=21&type=section&id=Pledge%20of%20Assets) During the period, certain investment properties of the Group were pledged to banks to secure bank borrowings of approximately **HKD 118,543,000**, which bear interest at floating rates - Certain investment properties were pledged to banks to secure bank borrowings of approximately **HKD 118,543,000**[52](index=52&type=chunk) [Contingent Liabilities and Capital Commitments](index=21&type=section&id=Contingent%20Liabilities%20and%20Capital%20Commitments) As of June 30, 2025, neither the Company nor the Group had any significant contingent liabilities or material capital commitments - As of June 30, 2025, neither the Company nor the Group had any significant contingent liabilities or capital commitments[53](index=53&type=chunk) [Material Investments](index=22&type=section&id=Material%20Investments) Apart from the securities investments disclosed in this announcement, the Group had no other material investments or future plans for material investments or capital assets as of June 30, 2025 - No other material investments or future plans apart from the disclosed securities investments[54](index=54&type=chunk) [Capital Structure](index=22&type=section&id=The%20Group%27s%20Capital%20Structure) The Group's total equity was **HKD 222,748,000**, with fixed-rate liabilities, floating-rate liabilities, and interest-free liabilities accounting for **5%**, **53%**, and **12%** of total equity, respectively, and the debt-to-asset ratio decreased to approximately **4%** from the end of last year Capital Structure (As of June 30) | Liability Type | Amount (HKD thousands) | Percentage of Total Equity | | :--- | :--- | :--- | | Fixed-rate liabilities | 11,614 | 5% | | Floating-rate liabilities | 118,543 | 53% | | Interest-free liabilities | 27,228 | 12% | | Debt-to-asset ratio | - | 4% | - The debt-to-asset ratio decreased from **5%** as of December 31, 2024, to **4%** as of June 30, 2025[55](index=55&type=chunk) [Employees and Remuneration Policy](index=22&type=section&id=Employees%20and%20Remuneration%20Policy) As of the period end, the Group employed approximately **46** employees, with staff costs of **HKD 6,580,000**, and its remuneration policy is market-competitive, reviewed annually based on employee and Group performance, with a share option scheme available for directors and employees Employee and Remuneration Information (As of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Number of employees | 46 | 48 | | Staff costs (HKD thousands) | 6,580 | 6,453 | - Remuneration policy is market-competitive and determined based on individual employee performance[56](index=56&type=chunk) [Future Outlook](index=23&type=section&id=Future%20Outlook) This section outlines the Group's overall outlook for the remainder of 2025, including specific prospects for the hotel and hospitality services and hair salon businesses, emphasizing continuous improvement, financial strengthening, debt reduction, and strategic asset realization [Overall Outlook](index=23&type=section&id=Outlook%20for%20the%20Remainder%20of%202025) The outlook for the remainder of 2025 is uncertain, influenced by the global economic environment, geopolitical risks, and US trade policies, prompting the Group to continuously improve, strengthen its financial position, explore debt reduction plans, and strategically realize underperforming assets to increase revenue, reduce costs, and enhance efficiency - Future outlook is affected by global economic uncertainty, geopolitical tensions, and US trade policies[57](index=57&type=chunk) - The Group will strengthen its financial position, explore debt reduction plans, and strategically realize underperforming assets to generate cash inflows[57](index=57&type=chunk) [Hotel and Hospitality Services Business Outlook](index=23&type=section&id=Short-Term%20Outlook%20for%20the%20Hotel%20Industry) The short-term outlook for the hotel industry is mixed, but the Group remains cautiously optimistic about the long-term prospects for Hong Kong's tourism and hotel sector, with the HKSAR Government's "Hong Kong Tourism Development Blueprint 2.0" and the opening of Kai Tak Sports Park expected to solidify Hong Kong's position as a world-class tourist destination, offering recovery potential for the Group's mid-range hostels - The Group remains cautiously optimistic about the long-term prospects for Hong Kong's tourism and hotel industry[58](index=58&type=chunk) - The HKSAR Government's "Hong Kong Tourism Development Blueprint 2.0" and the opening of Kai Tak Sports Park are expected to boost tourism development[58](index=58&type=chunk) - The Group's mid-range hostel brands' recognition and customer base are expected to provide resilience and recovery potential[58](index=58&type=chunk) [Hair Salon Business Outlook](index=24&type=section&id=Hair%20Salon%20Business) The hair salon business will continue to focus on customer service standards and seek growth opportunities by understanding customer needs and embracing technological innovation, with AI-driven personalized hair care recommendations and digital consultation platforms expected to reshape the salon experience and enhance customer engagement and retention - The hair salon business will continue to focus on customer service standards and embrace technological innovation[59](index=59&type=chunk) - Introducing technological innovations such as AI-driven personalized hair care recommendations and digital consultation platforms is expected to reshape the salon experience, increasing customer engagement and retention[59](index=59&type=chunk) [Corporate Governance and Others](index=21&type=section&id=Corporate%20Governance%20and%20Others) This section covers the Group's corporate social responsibility initiatives, interim dividend policy, share transactions, corporate governance practices, audit committee review, directors' securities trading, publication of results, and board composition [Corporate Social Responsibility](index=21&type=section&id=Corporate%20Social%20Responsibility) The Group has received the "Caring Company" award for seventeen consecutive years from The Hong Kong Council of Social Service, along with other recognitions like "Good MPF Employer" and "Manpower Developer," demonstrating its firm commitment to social responsibility - Received the "Caring Company" award for **seventeen consecutive years** and multiple other corporate social responsibility recognitions[49](index=49&type=chunk) [Interim Dividend](index=11&type=section&id=Interim%20Dividend) The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[24](index=24&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period[61](index=61&type=chunk) [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The Company generally complied with the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules during the review period, with the Board believing the combined roles of Chairman and Chief Executive Officer serve the best interests of the Company and its shareholders, and the Audit Committee has reviewed the interim financial statements, with all directors confirming compliance with the standard code for securities transactions [Compliance with Listing Rules Best Practice Guide](index=24&type=section&id=Compliance%20with%20Listing%20Rules%20Best%20Practice%20Guide) The Company generally complied with the Corporate Governance Code, although the roles of Chairman and Chief Executive Officer are held by Mr. Tsang Chiu Wu, an arrangement the Board believes is in the best overall interests of the Company and its shareholders - The Company generally complied with the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are held by Mr. Tsang Chiu Wu[62](index=62&type=chunk) [Audit Committee and Review of Interim Financial Statements](index=25&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Financial%20Statements) The Audit Committee, comprising all independent non-executive directors, has discussed with management and reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[63](index=63&type=chunk) [Standard Code for Directors' Securities Transactions](index=25&type=section&id=Standard%20Code%20for%20Directors%27%20Securities%20Transactions) The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with this code during the review period - All Directors confirmed compliance with the Standard Code as set out in Appendix C3 of the Listing Rules during the review period[64](index=64&type=chunk) [Publication of Unaudited Interim Results and Interim Report](index=25&type=section&id=Publication%20of%20Unaudited%20Interim%20Results%20and%20Interim%20Report) This interim results announcement has been published on the HKEXnews website and the Company's website, with the interim report to be dispatched to shareholders and made available for inspection in due course - The interim results announcement has been published on the HKEXnews website and the Company's website[65](index=65&type=chunk) [Board of Directors](index=25&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Company's Board of Directors comprises seven directors, including three executive directors (Mr. Tsang Chiu Wu, Ms. Tsang Chiu Wun, and Ms. Chu Ming Tak) and four independent non-executive directors (Mr. Hui Yan Kit, Mr. Lau Pui Wing, Ms. Ho Ting Mei, and Mr. Ng Bun Kuen) - The Board of Directors consists of three executive directors and four independent non-executive directors[66](index=66&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Ye Xing Group Holdings Limited 燁星集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1941） 截至二零二五年六月三十日止六個月 中期業績公告 中期業績摘要 – 1 – • 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月，本 集 團 的 總 收 益 約 為 人 民 幣173.1 百 萬 元，較 二 零 二 四 年 同 期 的 約 人 民 幣186.9百萬元減少約人民幣13.8百 萬元或約7.4%。截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月，物 業 管 理 服 務、 物業開發商相關服務及增值服務產生的收益分別約佔總收益的91.0%、 0.9%及8.1%。 • 物業管理服務分部產生的收益約人民幣157.5百 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 中 國 鐵 路 通 信 信 號 股 份 有 限 公 司 China Railway Signal & Communication Corporation Limited* （在中華人民共和國註冊成立的股份有限公司） （股份代號：3969） 截 至2025年6月30日止六個月之中期業績公告 中 國 鐵 路 通 信 信 號 股 份 有 限 公 司（「本公司」）董 事 會（「董事會」）謹 此 宣 佈 本公司及其附屬公司截至2025年6月30日 止 六 個 月 之 未 經 審 計 中 期 業 績。 本 公 告 符 合 香 港 聯 合 交 易 所 有 限 公 司（「香港聯交所」）證 券 上 市 規 則 中 有 關 中 期 業 績 初 步 公 告 附 載 的 資 料 之 要 求。 刊登中期業績公告及中期報告 本業績公告分別在香港聯交所披露易網站(w ...