[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) The company reported a substantial reduction in loss for the period despite a decrease in revenue, primarily driven by a positive shift in financial asset fair value changes 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) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 69,577 | 88,516 | -21.4% | | Cost of Sales | (44,383) | (50,664) | -12.4% | | Gross Profit | 25,194 | 37,852 | -33.5% | | Other Income, Gains and Losses, Net | 792 | 2,571 | -69.2% | | Selling and Distribution Costs | (21,760) | (23,920) | -9.0% | | Administrative Expenses | (14,729) | (19,631) | -25.0% | | Gain (Loss) on Fair Value Change of Financial Assets at Fair Value Through Profit or Loss | 8,979 | (12,028) | N/A (Turned from loss to gain) | | Loss Before Income Tax | (9,334) | (22,620) | -58.7% | | Loss for the Period | (9,285) | (24,264) | -61.7% | | Loss for the Period Attributable to Owners of the Company | (9,125) | (24,264) | -62.4% | | Basic and Diluted Loss Per Share (HK Cents) | (0.18) | (0.48) | -62.5% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) The company's financial position shows a slight increase in total assets and equity, with improved net current assets and reduced current liabilities Condensed Consolidated Statement of Financial Position (As at June 30/December 31): | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 208,731 | 205,545 | +1.5% | | Current Assets | 304,340 | 312,048 | -2.5% | | Current Liabilities | 74,177 | 84,028 | -11.7% | | Net Current Assets | 230,163 | 228,020 | +0.9% | | Total Assets Less Current Liabilities | 438,894 | 433,565 | +1.2% | | Non-current Liabilities | 7,981 | 7,074 | +12.8% | | Net Assets | 430,913 | 426,491 | +1.0% | | Total Equity | 430,913 | 426,491 | +1.0% | [Notes to the Condensed Consolidated Interim Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section details the preparation basis, principal accounting policies, and the impact of revised Hong Kong Financial Reporting Standards on the interim financial statements - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and applicable disclosure provisions of the HKEX Listing Rules[6](index=6&type=chunk)[7](index=7&type=chunk) - The revised Hong Kong Financial Reporting Standards were first applied in this interim period, with no significant impact on financial position or performance[8](index=8&type=chunk) [1. Basis of Preparation and Principal Accounting Policies](index=5&type=section&id=1.%20Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) This chapter explains that the condensed consolidated interim financial statements are prepared under HKAS 34 and HKEX Listing Rules, using a historical cost basis consistent with prior annual financial statements [1.1 Basis of Preparation](index=5&type=section&id=1.1%20Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and applicable disclosure provisions of the HKEX Listing Rules, and should be read in conjunction with the annual financial statements - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and applicable disclosure provisions of the HKEX Listing Rules[6](index=6&type=chunk) [1.2 Principal Accounting Policies](index=5&type=section&id=1.2%20Principal%20Accounting%20Policies) The unaudited condensed consolidated interim financial statements are prepared on a historical cost basis, with accounting policies and methods of computation consistent with the prior year's annual consolidated financial statements, except for the application of revised HKFRS - The financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value[7](index=7&type=chunk) - Except for the application of revised Hong Kong Financial Reporting Standards, accounting policies are consistent with the prior year's consolidated financial statements[7](index=7&type=chunk) [2. Application of Revised Hong Kong Financial Reporting Standards](index=5&type=section&id=2.%20Application%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) During this interim period, the Group first applied revised HKFRS (HKAS 21 (Amendment) Lack of Exchangeability), which had no significant impact on the financial position, performance, or disclosures for current and prior periods - Hong Kong Accounting Standard 21 (Amendment) "Lack of Exchangeability" was first applied in this interim period[8](index=8&type=chunk) - The application of revised standards had no significant impact on the financial position, performance, or disclosures for the current and prior periods[8](index=8&type=chunk) [3. Revenue and Segment Information](index=6&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group operates in two segments: dental business and healthcare business, with total revenue of HK$69,577 thousand in H1 2025, where the dental business contributed HK$66,433 thousand and the healthcare business HK$3,144 thousand, with the dental business facing losses while the healthcare business achieved profitability - The Group's operations are divided into two segments: dental business and healthcare business[9](index=9&type=chunk) Segment Revenue (For the six months ended June 30): | Segment | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Dental Business | 66,433 | 85,888 | -22.6% | | Healthcare Business | 3,144 | 2,628 | +19.6% | | **Total Revenue** | **69,577** | **88,516** | **-21.4%** | Segment Operating (Loss) Profit (For the six months ended June 30): | Segment | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Dental Business | (16,658) | (2,986) | | Healthcare Business | 757 | (1,252) | | **Total Segment Operating (Loss) Profit** | **(15,901)** | **(4,238)** | [3.1 Segment Revenue and Results](index=6&type=section&id=3.1%20Segment%20Revenue%20and%20Results) In H1 2025, dental business revenue decreased by 22.6% year-on-year to HK$66,433 thousand, recording an operating loss of HK$16,658 thousand, while healthcare business revenue increased by 19.6% year-on-year to HK$3,144 thousand, achieving an operating profit of HK$757 thousand, leading to an overall segment operating loss of HK$15,901 thousand Segment Revenue and Operating Results (For the six months ended June 30): | Indicator | Dental Business (HK$ Thousand) | Healthcare Business (HK$ Thousand) | Total (HK$ Thousand) | | :--- | :--- | :--- | :--- | | **2025 Revenue** | 66,433 | 3,144 | 69,577 | | **2025 Segment Operating (Loss) Profit** | (16,658) | 757 | (15,901) | | **2024 Revenue** | 85,888 | 2,628 | 88,516 | | **2024 Segment Operating Loss** | (2,986) | (1,252) | (4,238) | - Dental business revenue decreased, and operating loss expanded; healthcare business revenue grew, achieving operating profit[10](index=10&type=chunk)[11](index=11&type=chunk) [3.2 Segment Assets and Liabilities](index=8&type=section&id=3.2%20Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total reportable segment assets were HK$511,923 thousand, with dental business assets at HK$271,757 thousand and healthcare business assets at HK$240,166 thousand, and total liabilities were HK$82,158 thousand, showing a decrease in both total assets and liabilities compared to December 31, 2024 Segment Assets and Liabilities (As at June 30/December 31): | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Reportable Segment Assets | 511,923 | 515,802 | | Total Assets | 513,071 | 517,593 | | Reportable Segment Liabilities | (66,441) | (74,695) | | Total Liabilities | (82,158) | (91,102) | [3.3 Geographical Information](index=9&type=section&id=3.3%20Geographical%20Information) The Group's operations are primarily located in Hong Kong and Mainland China (excluding Hong Kong), with over 90% of external customer revenue originating from Mainland China (excluding Hong Kong), and total non-current assets as of June 30, 2025, were HK$46,502 thousand, with Mainland China (excluding Hong Kong) accounting for HK$24,106 thousand - Over **90%** of external customer revenue is from Mainland China (excluding Hong Kong)[13](index=13&type=chunk) Non-current Assets by Geographical Location: | Region | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Mainland China (excluding Hong Kong) | 24,106 | 22,679 | | Other | 22,396 | 22,605 | | **Total** | **46,502** | **45,284** | [3.4 Information About Major Customers](index=9&type=section&id=3.4%20Information%20About%20Major%20Customers) The Group has no individual customer whose revenue accounts for more than 10% of total revenue - No individual customer's revenue accounts for more than **10%** of the Group's total revenue[16](index=16&type=chunk) [4. Loss Before Income Tax](index=10&type=section&id=4.%20Loss%20Before%20Income%20Tax) The loss before income tax for H1 2025 was HK$9,334 thousand, a significant reduction from HK$22,620 thousand in the same period last year, primarily due to a shift from loss to gain in fair value changes of financial assets at fair value through profit or loss, and reduced depreciation, amortization, lease expenses, and R&D expenses Loss Before Income Tax Components (For the six months ended June 30): | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Amortisation of Intangible Assets | 347 | 343 | | Depreciation of Property, Plant and Equipment | 3,289 | 4,056 | | Depreciation of Right-of-use Assets | 2,773 | 3,322 | | Short-term Lease Expenses | 877 | 1,646 | | Research and Development Expenses | 7,779 | 8,584 | | Finance Costs on Lease Liabilities | 228 | 409 | | Bank Interest Income | (746) | (1,090) | | Dividend Income | (201) | (666) | | Net Exchange Gains | 485 | (153) | - Loss before income tax significantly decreased from **HK$22,620 thousand** in 2024 to **HK$9,334 thousand** in 2025[2](index=2&type=chunk) [5. Income Tax Credit (Expense)](index=11&type=section&id=5.%20Income%20Tax%20Credit%20%28Expense%29) The income tax credit for H1 2025 was HK$49 thousand, compared to an expense of HK$1,644 thousand in the prior year, with no taxable profits in Hong Kong and overseas jurisdictions, and a 15% preferential tax rate for a PRC subsidiary due to its high-tech enterprise qualification and R&D super deduction policy Income Tax Credit (Expense) (For the six months ended June 30): | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current Tax | – | 1,558 | | Deferred Tax (Credit) Expense | (49) | 86 | | **Total** | **(49)** | **1,644** | - Hong Kong and overseas jurisdictions had no taxable profits, thus no Hong Kong profits tax provision was made[19](index=19&type=chunk)[20](index=20&type=chunk) - A PRC subsidiary enjoys a **15%** preferential tax rate due to its high-tech enterprise qualification and can apply for a **175%** super deduction allowance for R&D expenses[21](index=21&type=chunk) [Overseas Income Tax](index=11&type=section&id=Overseas%20Income%20Tax) The Group is not subject to any income tax in the jurisdictions of Bermuda and the British Virgin Islands - The Group is not subject to any income tax in Bermuda and the British Virgin Islands[19](index=19&type=chunk) [Hong Kong Profits Tax](index=11&type=section&id=Hong%20Kong%20Profits%20Tax) No provision for Hong Kong profits tax was made as the Group had no assessable profits for the six months ended June 30, 2025, and 2024 - The Group had no assessable profits in H1 2025 and 2024, thus no provision for Hong Kong profits tax was made[20](index=20&type=chunk) [PRC Enterprise Income Tax](index=11&type=section&id=PRC%20Enterprise%20Income%20Tax) PRC subsidiaries are subject to a 25% enterprise income tax rate, but one subsidiary, recognized as a "High and New Technology Enterprise," qualifies for a 15% preferential tax rate for three tax years from 2024 to 2026 and can apply for a 175% super deduction allowance for R&D expenses - PRC subsidiaries are subject to a **25%** enterprise income tax rate, but one high-tech enterprise enjoys a **15%** preferential tax rate[21](index=21&type=chunk) - Qualified enterprises can apply for a **175%** super deduction allowance for R&D expenses[21](index=21&type=chunk) [6. Dividends](index=12&type=section&id=6.%20Dividends) The company did not pay, declare, or propose any dividends for the six months ended June 30, 2025, and 2024 - For the six months ended June 30, 2025, and 2024, the company neither paid, declared, nor proposed any dividends[22](index=22&type=chunk) [7. Loss Per Share](index=12&type=section&id=7.%20Loss%20Per%20Share) The basic and diluted loss per share attributable to owners of the company for H1 2025 was 0.18 HK Cents, a significant reduction from 0.48 HK Cents in H1 2024, with diluted loss per share being the same as basic loss per share due to the exercise price of share options being higher than the average market price of shares Loss Per Share (For the six months ended June 30): | Indicator | 2025 (HK Cents) | 2024 (HK Cents) | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (0.18) | (0.48) | - The exercise price of share options was higher than the average market price of shares, thus diluted loss per share was the same as basic loss per share[24](index=24&type=chunk)[25](index=25&type=chunk) [8. Financial Assets at Fair Value Through Profit or Loss](index=13&type=section&id=8.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, total financial assets at fair value through profit or loss amounted to HK$162,229 thousand, a slight increase from December 31, 2024, primarily comprising limited partnership interests in Zhuhai Partnership and Haoyi Partnership, with a fair value change gain of HK$8,979 thousand recorded for the period Financial Assets at Fair Value Through Profit or Loss (As at June 30/December 31): | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Zhuhai Partnership | 119,451 | 116,919 | | Haoyi Partnership | 42,778 | 43,342 | | **Total** | **162,229** | **160,261** | - A fair value change gain of **HK$8,979 thousand** was recorded for financial assets at fair value through profit or loss in the current period, compared to a loss of HK$9,772 thousand in the prior period[32](index=32&type=chunk) - The company's directors believe there is no actual control or significant influence over the two limited partnership entities, hence they are measured at fair value through profit or loss[26](index=26&type=chunk) [(a) Zhuhai Partnership](index=13&type=section&id=%28a%29%20Zhuhai%20Partnership) The Group holds a 5.51% equity interest in Zhuhai Partnership, which primarily invests in equity and equity-related securities in information technology and high-quality healthcare industries, and exercises financial and operational control over Shenzhen Dayi Zhen Technology Co Ltd (the equity holder of Zhuhai Partnership) through contractual arrangements (VIE agreements), consolidating its financial information into the consolidated financial statements - The Group holds a **5.51%** equity interest in Zhuhai Partnership, primarily investing in information technology and high-quality healthcare industries[27](index=27&type=chunk) - Through cooperation agreements and VIE agreements with Shenzhen Yingdu and Shenzhen Dayi Zhen Technology Co Ltd, the Group exercises effective control over Shenzhen Dayi Zhen and consolidates its financial information into the consolidated financial statements[28](index=28&type=chunk)[30](index=30&type=chunk) - Legal counsel believes the contractual arrangements comply with PRC laws and regulations, are valid, binding, and legally enforceable[29](index=29&type=chunk) [(b) Haoyi Partnership](index=15&type=section&id=%28b%29%20Haoyi%20Partnership) The Group holds a 99.9% limited partnership interest in Haoyi Partnership, which focuses on China's healthcare business, and after selling part of its equity in 2023, the Group lost control, joint control, or significant influence over Haoyi Partnership, thus classifying it as a financial asset at fair value through profit or loss - The Group holds a **99.9%** limited partnership interest in Haoyi Partnership, which focuses on China's healthcare business[31](index=31&type=chunk) - After selling part of its equity in 2023, the Group lost control over Haoyi Partnership, classifying it as a financial asset at fair value through profit or loss[31](index=31&type=chunk) [9. Trade and Other Receivables](index=16&type=section&id=9.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables amounted to HK$140,842 thousand, a decrease from HK$148,177 thousand as of December 31, 2024, with a net reversal of impairment allowance for trade receivables of HK$197 thousand Trade and Other Receivables (As at June 30/December 31): | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables (net of impairment) | 98,178 | 111,201 | | Other Receivables related to Land Use Rights Acquisition | 21,935 | 21,202 | | Other Receivables, Prepayments and Deposits (net of impairment) | 42,664 | 36,976 | | **Total** | **140,842** | **148,177** | - Net reversal of impairment loss for trade receivables was **HK$197 thousand**[2](index=2&type=chunk) [(a) Trade Receivables](index=16&type=section&id=%28a%29%20Trade%20Receivables) As of June 30, 2025, trade receivables (net of impairment) were HK$98,178 thousand, a decrease from HK$111,201 thousand as of December 31, 2024, with an increased proportion of receivables aged 91 to 180 days and over one year Trade Receivables Ageing Analysis (As at June 30/December 31): | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 90 days | 23,604 | 57,282 | | 91 to 180 days | 42,358 | 27,105 | | 181 to 365 days | 19,706 | 20,003 | | Over one year | 12,510 | 6,811 | | **Total** | **98,178** | **111,201** | - The average credit period for trade receivables is **30 to 90 days**, with some good customers extending up to **360 days**[34](index=34&type=chunk) [(b) Other Receivables, Prepayments and Deposits](index=17&type=section&id=%28b%29%20Other%20Receivables%2C%20Prepayments%20and%20Deposits) As of June 30, 2025, other receivables related to the acquisition of land use rights amounted to HK$21,935 thousand, while a deposit of HK$20,000 thousand previously paid by the Group for a rural revitalization project was fully impaired in 2024 due to the termination of the original cooperation agreement and non-payment by the counterparty - As of June 30, 2025, other receivables related to the acquisition of land use rights amounted to **HK$21,935 thousand**[33](index=33&type=chunk) - In 2024, a **HK$20,000 thousand** deposit for land use rights was fully impaired due to the termination of the original cooperation agreement and non-payment by the counterparty[36](index=36&type=chunk) [(c) Movement in Impairment of Other Receivables](index=18&type=section&id=%28c%29%20Movement%20in%20Impairment%20of%20Other%20Receivables) As of June 30, 2025, the impairment allowance for other receivables increased to HK$29,994 thousand, primarily due to an exchange adjustment increase of HK$1,002 thousand Movement in Impairment of Other Receivables (As at June 30/December 31): | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | At January 1 | 28,992 | 7,817 | | Recognized during the year | – | 21,893 | | Exchange adjustment | 1,002 | (718) | | **At June 30/December 31** | **29,994** | **28,992** | [(d) Other](index=18&type=section&id=%28d%29%20Other) The directors believe there is no material difference between the fair value and carrying amount of trade and other receivables expected to be realized within one year, as these balances are due in the short term - The fair value of trade and other receivables has no material difference from their carrying amount, as all balances are due in the short term[37](index=37&type=chunk) [10. Amounts Due From/To Fellow Subsidiaries/Ultimate Holding Company](index=18&type=section&id=10.%20Amounts%20Due%20From%2FTo%20Fellow%20Subsidiaries%2FUltimate%20Holding%20Company) These amounts are unsecured, interest-free, and repayable on demand, and the directors believe there has been no significant increase in credit risk or default rates for amounts due from fellow subsidiaries - Amounts due from/to fellow subsidiaries/ultimate holding company are unsecured, interest-free, and repayable on demand[38](index=38&type=chunk) - The directors believe there has been no significant increase in credit risk or default rates for amounts due from fellow subsidiaries[38](index=38&type=chunk) [11. Trade and Other Payables](index=18&type=section&id=11.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to HK$55,122 thousand, a decrease from HK$64,773 thousand as of December 31, 2024, with an increase in trade payables and a decrease in advances received and other payables Trade and Other Payables (As at June 30/December 31): | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Payables | 9,495 | 5,552 | | Advances Received | 18,326 | 25,058 | | Other Payables | 13,763 | 20,688 | | Accrued Charges | 9,619 | 10,485 | | Contract Liabilities | 3,919 | 2,990 | | **Total** | **55,122** | **64,773** | [(a) Trade Payables](index=19&type=section&id=%28a%29%20Trade%20Payables) As of June 30, 2025, trade payables were HK$9,495 thousand, an increase from HK$5,552 thousand as of December 31, 2024, with an average credit period of 90 days Trade Payables Ageing Analysis (As at June 30/December 31): | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 90 days | 7,741 | 5,179 | | 91 to 180 days | 1,389 | 295 | | Over 180 days | 365 | 78 | | **Total** | **9,495** | **5,552** | - The average credit period for purchases of goods is **90 days**[40](index=40&type=chunk) [(b) Other Payables](index=19&type=section&id=%28b%29%20Other%20Payables) Other payables primarily include PRC Value Added Tax and other taxes payable - Other payables primarily include PRC Value Added Tax and other taxes payable[40](index=40&type=chunk) [(c) Accrued Charges](index=19&type=section&id=%28c%29%20Accrued%20Charges) Accrued charges primarily include staff salaries and allowances, contributions to defined contribution retirement schemes, and consulting fees for dental and healthcare projects - Accrued charges primarily include staff salaries, retirement scheme contributions, and consulting fees for dental and healthcare projects[40](index=40&type=chunk) [(d) Contract Liabilities](index=19&type=section&id=%28d%29%20Contract%20Liabilities) Contract liabilities represent advances received for medical services under the healthcare business segment, amounting to HK$3,919 thousand as of June 30, 2025, an increase from December 31, 2024 - Contract liabilities represent advances received for medical services under the healthcare business segment[40](index=40&type=chunk) Movement in Contract Liabilities (As at June 30/December 31): | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | At January 1 | 2,990 | 2,536 | | Additions | 4,073 | 6,772 | | Revenue recognized during the year | (3,144) | (6,318) | | **At June 30/December 31** | **3,919** | **2,990** | [(e) Other](index=20&type=section&id=%28e%29%20Other) The directors consider that all amounts are short-term, and therefore the carrying amounts of the Group's trade and other payables are considered to approximate their fair values - The carrying amounts of trade and other payables are considered to approximate their fair values, as all amounts are short-term[41](index=41&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) The Group's H1 2025 revenue decreased by 21.4%, but the loss attributable to owners of the company significantly narrowed by 62.4%, primarily due to a positive shift in the fair value of financial assets - The Group's H1 2025 revenue decreased by **21.4%**, but the loss attributable to owners of the company significantly narrowed by **62.4%**[42](index=42&type=chunk) - Dental business revenue declined due to centralized procurement policies, while healthcare business revenue increased by **15%** year-on-year[44](index=44&type=chunk)[46](index=46&type=chunk) - The positive shift in fair value changes of financial assets at fair value through profit or loss was a primary reason for the narrowed loss[42](index=42&type=chunk)[51](index=51&type=chunk) [Financial Highlights](index=21&type=section&id=Financial%20Highlights) In H1 2025, the Group's revenue was approximately HK$69,600 thousand, a 21.4% year-on-year decrease, with gross profit margin falling to 36.2%, while the loss attributable to owners of the company significantly narrowed to approximately HK$9,100 thousand (HK$24,300 thousand in the prior year), and basic and diluted loss per share was 0.18 HK Cents Financial Highlights (For the six months ended June 30): | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 69,600 | 88,500 | -21.4% | | Gross Margin | 36.2% | 42.8% | -6.6 percentage points | | Loss Attributable to Owners of the Company | (9,100) | (24,300) | -62.5% | | Basic and Diluted Loss Per Share (HK Cents) | (0.18) | (0.48) | -62.5% | [Interim Dividend](index=21&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the current period, consistent with the prior year - The Board of Directors does not recommend the payment of an interim dividend for the current period[43](index=43&type=chunk) [Business Review](index=21&type=section&id=Business%20Review) The Group primarily operates dental and healthcare businesses, with dental business revenue decreasing by 22.6% due to centralized procurement policies, but continuing to invest in R&D and market expansion, while healthcare business revenue increased by 15% year-on-year and successfully renewed its medical insurance designated institution qualification - The Group primarily engages in dental business (sales and production of prosthetics) and healthcare business (sports rehabilitation services)[9](index=9&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) - Dental business revenue decreased, but the Group continues to invest in R&D and plans to establish regional manufacturing centers in Shanghai and Chengdu[44](index=44&type=chunk)[45](index=45&type=chunk) - Healthcare business revenue increased by **15%** year-on-year and successfully renewed its Shenzhen medical insurance designated institution qualification[46](index=46&type=chunk) [Dental Business](index=21&type=section&id=Dental%20Business) The dental business, primarily involving the sale and production of prosthetics, generated approximately HK$66,400 thousand in H1 2025, a year-on-year decrease of approximately HK$19,500 thousand, with the Group continuing to invest in R&D (approximately HK$7,800 thousand) and planning to establish regional manufacturing centers in Shanghai and Chengdu to reduce logistics costs, and despite the impact of centralized procurement policies and industry competition, the implant business has entered more chain dental institutions - Dental business revenue was approximately **HK$66,400 thousand**, a decrease of approximately **HK$19,500 thousand** compared to the prior year[44](index=44&type=chunk) - R&D expenses were approximately **HK$7,800 thousand**, reflecting management's commitment to future technology investment[45](index=45&type=chunk) - Plans include establishing regional manufacturing centers in Shanghai and Chengdu to reduce logistics costs and expanding the Sino-US implant R&D center team[44](index=44&type=chunk)[45](index=45&type=chunk) [Healthcare Business](index=22&type=section&id=Healthcare%20Business) Hejia Rehabilitation Clinic successfully met the Shenzhen Medical Insurance Bureau's performance assessment, smoothly renewing its medical insurance designated institution qualification, expanded its team in H1 2025, increased operating revenue by 15% year-on-year, and became Shenzhen's most widely distributed medical-grade sports rehabilitation center, enhancing its industry influence - Hejia Rehabilitation Clinic successfully renewed its Shenzhen medical insurance designated institution qualification, with operating revenue increasing by **15%** year-on-year[46](index=46&type=chunk) - It has become Shenzhen's most widely distributed medical-grade sports rehabilitation center and was invited to be a理事单位 of the National Sports Rehabilitation Industry Alliance, enhancing its industry influence[64](index=64&type=chunk) [Operating Results and Financial Review](index=23&type=section&id=Operating%20Results%20and%20Financial%20Review) This section provides a detailed analysis of the Group's revenue, gross profit, financial assets, cash flow, capital expenditure, contingent liabilities, and treasury policy, noting that revenue decline was primarily due to China's government centralized procurement policies, which also led to a lower gross profit margin, while fair value changes of financial assets shifted from loss to gain, bank balances remained robust, and capital expenditure increased - Revenue decreased by **21.4%** to **HK$69,600 thousand**, primarily due to reduced average selling prices of dental products caused by China's government centralized procurement policies[47](index=47&type=chunk) - Gross profit decreased by **33.5%** to **HK$25,200 thousand**, with gross profit margin falling to **36.2%**, mainly due to lower average selling prices during the period[48](index=48&type=chunk) - Fair value changes of financial assets at fair value through profit or loss shifted from loss to gain, accounting for approximately **31.6%** of total assets[51](index=51&type=chunk) [Revenue](index=23&type=section&id=Revenue) Revenue for the period was approximately HK$69,600 thousand, a decrease of approximately 21.4% compared to the prior year, primarily due to the continued adverse impact of China's government centralized procurement price policies on the average selling prices of dental products Revenue (For the six months ended June 30): | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 69,600 | 88,500 | - Revenue decreased primarily due to reduced average selling prices of dental products caused by China's government centralized procurement price policies[47](index=47&type=chunk) [Gross Profit and Gross Margin](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit for the period was approximately HK$25,200 thousand, a decrease of approximately 33.5% compared to the prior year, with gross profit margin at approximately 36.2%, a 6.6 percentage point decrease from the prior year, mainly due to lower average selling prices Gross Profit and Gross Margin (For the six months ended June 30): | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Gross Profit | 25,200 | 37,900 | | Gross Margin | 36.2% | 42.8% | - The decrease in gross profit margin was primarily due to lower average selling prices during the period[48](index=48&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=23&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the fair value of financial assets at fair value through profit or loss was approximately HK$162,200 thousand, an increase of approximately 1.2% from December 31, 2024, mainly due to the increased valuation of related equity and equity-related securities invested by Zhuhai Partnership, with a fair value gain of approximately HK$9,000 thousand recorded for the period Financial Assets at Fair Value Through Profit or Loss (As at June 30): | Investee | 2025 Fair Value (HK$ Million) | 2025 Fair Value Gain/(Loss) (HK$ Million) | | :--- | :--- | :--- | | Zhuhai Jinyiming Equity Investment Fund Partnership | 119.4 | 11.0 | | Haoyi Kangyang Services (Shenzhen) Partnership | 42.8 | (2.0) | | **Total** | **162.2** | **9.0** | - Financial assets increased by approximately **1.2%**, primarily due to the increased valuation of investments by Zhuhai Partnership[51](index=51&type=chunk) - Management will review the performance of partnership investments quarterly to determine the investment approach[52](index=52&type=chunk) [Zhuhai Partnership](index=23&type=section&id=Zhuhai%20Partnership) The Group holds a 5.51% limited partnership interest in Zhuhai Partnership through contractual arrangements, with an investment cost of RMB180,000,000, and this entity specializes in equity and equity-related securities in information technology, high-quality medical, and healthcare industries - The Group holds a **5.51%** limited partnership interest in Zhuhai Partnership through contractual arrangements, with an investment cost of **RMB180,000,000**[49](index=49&type=chunk) - Zhuhai Partnership's investment portfolio focuses on information technology, high-quality medical, and healthcare industries[49](index=49&type=chunk) [Haoyi Partnership](index=24&type=section&id=Haoyi%20Partnership) After selling part of its equity in 2023, the Group lost control over Haoyi Partnership, now holding a 99.9% limited partnership interest and classifying it as a financial asset at fair value through profit or loss, with Haoyi Partnership investing in the Zhuhai Shilianjiang project through Guanghao and its subsidiaries - The Group holds a **99.9%** limited partnership interest in Haoyi Partnership, which has been classified as a financial asset at fair value through profit or loss[50](index=50&type=chunk) - Haoyi Partnership invests in the Zhuhai Shilianjiang project through Guanghao and its subsidiaries[50](index=50&type=chunk) [Material Investments, Material Acquisitions and Disposals](index=25&type=section&id=Material%20Investments%2C%20Material%20Acquisitions%20and%20Disposals) Except as disclosed in this announcement, the Group made no other material investments or material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - The Group had no other material investments, acquisitions, or disposals during the period[53](index=53&type=chunk) [Bank Balances and Cash](index=25&type=section&id=Bank%20Balances%20and%20Cash) As of June 30, 2025, the Group's bank balances and cash were approximately HK$146,900 thousand, a slight decrease from December 31, 2024, but still maintaining a robust cash level Bank Balances and Cash (As at June 30/December 31): | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Bank Balances and Cash | 146,900 | 149,600 | - The Group maintained a robust cash level during the review period[54](index=54&type=chunk) [Capital Expenditure and Capital Commitments](index=25&type=section&id=Capital%20Expenditure%20and%20Capital%20Commitments) During the period, the Group invested approximately HK$9,300 thousand, primarily in right-of-use assets and production equipment, a significant increase from the prior year, and as of June 30, 2025, the Group had no capital expenditure commitments Capital Expenditure (For the six months ended June 30): | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital Expenditure | 9,300 | 2,100 | - Capital expenditure was primarily used for right-of-use assets and production equipment[55](index=55&type=chunk) - As of June 30, 2025, the Group had no capital expenditure commitments[55](index=55&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[56](index=56&type=chunk) [Pledge of the Group's Assets](index=25&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of June 30, 2025, none of the Group's assets were pledged to secure bank financing - As of June 30, 2025, none of the Group's assets were pledged to obtain bank financing[57](index=57&type=chunk) [Treasury Policy](index=25&type=section&id=Treasury%20Policy) The Group's sales and purchases are primarily denominated in RMB and USD, with cash mainly held in USD, RMB, and HKD, and while directors currently anticipate no significant exchange rate fluctuation risks and have not entered into hedging financial instruments, they will closely monitor foreign exchange and interest rate risks - Group sales and purchases are primarily denominated in **RMB** and **USD**, with cash mainly held in **USD**, **RMB**, and **HKD**[58](index=58&type=chunk) - Directors currently anticipate no significant exchange rate fluctuation risks and have not entered into hedging financial instruments, but will closely monitor foreign exchange and interest rate risks[58](index=58&type=chunk) [Liquidity, Capital Structure and Financial Resources](index=26&type=section&id=Liquidity%2C%20Capital%20Structure%20and%20Financial%20Resources) As of June 30, 2025, equity attributable to owners of the company was approximately HK$435,900 thousand, with net current assets of approximately HK$230,200 thousand, and liquidity and quick ratios of 4.10 and 3.89 respectively, both showing improvement and indicating ample liquidity, with no net debt, and management believes there are sufficient resources to meet obligations and fund future operational expansion Liquidity Indicators (As at June 30/December 31): | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company (HK$ Thousand) | 435,900 | 431,200 | | Net Current Assets (HK$ Thousand) | 230,200 | 228,000 | | Current Ratio | 4.10 | 3.71 | | Quick Ratio | 3.89 | 3.55 | - The Group has no net debt, and thus no gearing ratio is calculated[59](index=59&type=chunk) - Management believes the Group has ample resources to settle outstanding debts and fund daily operations and future expansion[60](index=60&type=chunk) [Outlook](index=26&type=section&id=Outlook) The Group will continue to focus on its core dental and healthcare businesses, aiming to enhance shareholder value by expanding sales networks, improving production capacity, developing high-end products, and seeking investment cooperation, thereby building the "Mega" and "Basic Dental" brands and forming an ecological cycle combining upstream and downstream oral care with medical and elderly care - The Group's business strategy is to further enhance shareholder value through expanded operations[61](index=61&type=chunk) - The Group aims to build the "Mega" and "Basic Dental" brands to become a high-end prosthetic consumables supplier[61](index=61&type=chunk) - The Group actively explores upstream and downstream medical device systems for oral care, and integrated medical and elderly care service systems, to form an ecological cycle[61](index=61&type=chunk) [Dental Business](index=27&type=section&id=Dental%20Business) The Group anticipates continued rapid growth in China's dental market and has formulated growth strategies including expanding domestic and international sales networks, enhancing production capacity, developing high-end new dental products, actively participating in exhibitions and public hospital tenders, and seeking investment and cooperation opportunities in high-tech dental-related fields - China's dental market is expected to maintain rapid growth, with several times its current development potential[62](index=62&type=chunk) - Growth strategies include expanding domestic and international sales networks, enhancing production capacity, developing high-end new dental products, and actively participating in exhibitions and public hospital tenders[62](index=62&type=chunk) - Continuous improvement of Basic Dental production processes, addition of automated equipment, and expansion of distribution networks are expected to lead to significant growth in the implant business[63](index=63&type=chunk) [Healthcare Business](index=27&type=section&id=Healthcare%20Business) With tightening approval and consumption management standards for Shenzhen medical insurance designated institutions, Hejia Rehabilitation Clinic, as a medical insurance designated unit, has gained more patient trust and has become Shenzhen's most widely distributed medical-grade sports rehabilitation center, further enhancing its professional influence in the industry - Hejia Rehabilitation Clinic, as a Shenzhen medical insurance designated unit, has gained more patient trust[64](index=64&type=chunk) - It has become Shenzhen's most widely distributed medical-grade sports rehabilitation center and was invited to be a理事单位 of the National Sports Rehabilitation Industry Alliance, enhancing its professional industry influence[64](index=64&type=chunk) [Significant Events After the Reporting Period](index=28&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period) No significant events affecting the company have occurred since June 30, 2025, up to the date of this announcement - No significant events affecting the company have occurred after the reporting period[65](index=65&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had approximately 917 employees, with a remuneration policy based on Group and employee performance, providing benefits such as social insurance and pensions, and adopting a share option scheme for long-term incentives Employee Count: | Date | Employee Count | | :--- | :--- | | June 30, 2025 | 917 | | December 31, 2024 | 861 | - The remuneration policy is based on Group and employee performance, providing social insurance, pension, and other benefits, and adopting a share option scheme for long-term incentives[66](index=66&type=chunk) [Directors' Compliance with the Model Code for Securities Transactions](index=28&type=section&id=Directors%27%20Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code set out in Appendix C3 of the Listing Rules and established written guidelines for employees, with all directors confirming compliance with the Model Code during the period, and no instances of non-compliance by employees were found - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules and established written guidelines for employees that are no less exacting than the Model Code[67](index=67&type=chunk) - All directors have confirmed compliance with the Model Code, and no instances of non-compliance by employees were found[67](index=67&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[68](index=68&type=chunk) [Compliance with the Corporate Governance Code](index=28&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the company has complied with all relevant code provisions of the Corporate Governance Code set out in Part 2 of Appendix C1 of the Listing Rules - The company has complied with all relevant code provisions of the Corporate Governance Code set out in Part 2 of Appendix C1 of the Listing Rules[69](index=69&type=chunk) [Review of Financial Information](index=29&type=section&id=Review%20of%20Financial%20Information) The company's audit committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025 - The audit committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated interim financial statements[70](index=70&type=chunk) [Publication of 2025 Interim Results and Interim Report](index=29&type=section&id=Publication%20of%202025%20Interim%20Results%20and%20Interim%20Report) The interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course as required by the Listing Rules - The interim results announcement has been published on the Hong Kong Exchange and company websites[71](index=71&type=chunk) - The interim report will be dispatched to shareholders and published on the websites in due course as required by the Listing Rules[71](index=71&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內 容而引致的任何損失承擔任何責任。 SINOTRUK (HONG KONG) LIMITED 中 國 重 汽（ 香 港 ）有 限 公 司 （於香港註冊成立的有限公司） （股份代號：03808） 截 至 2025 年 6 月 30 日 止 6 個月中期業績公佈 業績 董事會欣然公佈本集團截至2025年6月30日止6個月之未經審核中期業績及與上年 同期之比較數字如下： 綜合損益表 截至2025年6月30日止6個月－未經審核 （除另外說明外，所有金額以人民幣千元計） | | | 截至6月30日止6個月 | | | --- | --- | --- | --- | | | 附註 | 2025年 | 2024年 | | 收入 | 4 | 50,878,062 | 48,823,239 | | 銷售成本 | | (43,216,438) | (41,664,507) | | 毛利 | | 7,661,624 | 7,158,732 | | 其他收入及利 ...

[Company Information and GEM Characteristics](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8EGEM%E7%89%B9%E8%89%B2) [Company Overview](index=10&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E5%86%B5) China Life Group Limited (the Company) is incorporated in the Cayman Islands, with shares listed on the Stock Exchange's GEM, primarily engaging in investment holding with diversified subsidiary businesses across funeral services, cemetery sales, and biotechnology instrument sales - The Company is incorporated in the Cayman Islands, with shares listed on the Stock Exchange's GEM, primarily engaged in **investment holding**[12](index=12&type=chunk) - The Group's subsidiaries have diversified businesses, including funeral services in China, Taiwan, and Hong Kong, cemetery plot sales and maintenance in Vietnam, and sales of biotechnology instruments and electronic products in Hong Kong[12](index=12&type=chunk) [GEM Listing Characteristics and Risk Disclosure](index=1&type=section&id=GEM%E4%B8%8A%E5%B8%82%E7%89%B9%E7%82%B9%E4%B8%8E%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The Stock Exchange's GEM market provides a listing platform for SMEs, typically involving higher investment risks and potential market volatility, with no guarantee of high liquidity - The GEM market is positioned to provide a listing platform for small and medium-sized companies, with relatively **higher investment risks**[2](index=2&type=chunk)[5](index=5&type=chunk) - GEM securities may be subject to significant market volatility risks and do not guarantee **high liquidity**[2](index=2&type=chunk)[5](index=5&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=%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, Group revenue increased to RMB 36,039 thousand, gross profit grew by 10.4% to RMB 13,212 thousand, and the loss for the period narrowed to RMB 7,172 thousand despite an operating loss of RMB 5,182 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 36,039 | 34,383 | +4.8% | | Cost of sales and services | (22,827) | (22,412) | +1.9% | | Gross profit | 13,212 | 11,971 | +10.4% | | Operating loss | (5,182) | (6,745) | -23.2% | | Loss before tax | (5,931) | (7,673) | -22.7% | | Loss for the period | (7,172) | (8,909) | -19.5% | | Loss attributable to owners of the Company | (4,803) | (8,665) | -44.6% | | Basic loss per share (RMB cents) | (0.51) | (0.96) | -46.8% | | Diluted loss per share (RMB cents) | (0.38) | (1.00) | -62.0% | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=%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's non-current assets slightly increased to RMB 54,750 thousand, current assets marginally decreased to RMB 195,914 thousand, and current liabilities rose to RMB 138,888 thousand, resulting in a decrease in net current assets and total equity to RMB 99,456 thousand Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 54,750 | 54,248 | +0.9% | | Current assets | 195,914 | 196,378 | -0.2% | | Current liabilities | 138,888 | 133,611 | +3.9% | | Net current assets | 57,026 | 62,767 | -9.1% | | Total assets less current liabilities | 111,776 | 117,015 | -4.5% | | Non-current liabilities | 12,320 | 13,481 | -8.6% | | Net assets | 99,456 | 103,534 | -3.9% | | Total equity | 99,456 | 103,534 | -3.9% | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For the six months ended June 30, 2025, equity attributable to owners of the Company decreased from RMB 123,452 thousand to RMB 119,703 thousand, primarily due to a loss of RMB 4,803 thousand and non-controlling interests' capital injection of RMB 1,481 thousand Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | Equity attributable to owners of the Company (beginning of period) | 123,452 | 123,718 | | Loss for the period | (4,803) | (8,665) | | Exchange differences on translation of foreign operations | 1,054 | 1,797 | | Capital injection from non-controlling interests | 1,481 | 240 | | Equity attributable to owners of the Company (end of period) | 119,703 | 122,398 | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash used in operating activities significantly decreased to RMB 1,989 thousand, net cash from investing activities was RMB 74 thousand, net cash used in financing activities was RMB 1,255 thousand, and period-end cash and bank balances increased to RMB 110,858 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (1,989) | (12,145) | -83.6% | | Net cash from investing activities | 74 | 704 | -89.5% | | Net cash (used in)/from financing activities | (1,255) | 1,534 | -181.8% | | Net decrease in cash and cash equivalents | (3,170) | (9,907) | -68.0% | | Cash and cash equivalents as of June 30 | 110,858 | 118,770 | -6.7% | [Notes to the Financial Statements](index=10&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [General Information](index=10&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) The Group primarily engages in investment holding, with diversified subsidiary businesses including funeral services in China, Taiwan, and Hong Kong, cemetery sales and maintenance in Vietnam, and sales of high-end biotechnology instruments and other

[Condensed Consolidated Statement of Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's revenue increased by 11.4% to HK$450,905 thousand, while gross profit decreased by 8.0% to HK$51,376 thousand, and total comprehensive income remained stable at HK$4,239 thousand [Condensed Consolidated Statement of Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income_Detailed) For the six months ended June 30, 2025, the company's revenue increased by 11.4% to HK$450,905 thousand, but gross profit decreased by 8.0% to HK$51,376 thousand, leading to a gross margin reduction from 13.8% to 11.4%, while profit and total comprehensive income for the period remained stable at approximately HK$4,239 thousand Financial Performance Comparison (2025 vs 2024 H1) | Metric | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 450,905 | 404,683 | +11.4% | | Cost of services | (399,529) | (348,840) | +14.5% | | Gross profit | 51,376 | 55,843 | -8.0% | | Other income/(loss) net | 2,198 | (1,122) | N/A | | Administrative expenses | (30,592) | (31,126) | -1.7% | | Finance costs | (17,708) | (17,451) | +1.5% | | Profit before income tax expense | 5,274 | 6,144 | -14.1% | | Income tax expense | (1,035) | (1,872) | -44.8% | | Profit and total comprehensive income for the period attributable to owners of the Company | 4,239 | 4,272 | -0.8% | | Basic and diluted earnings per share (HK cents) | 0.53 | 0.53 | 0% | [Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets slightly decreased to HK$1,037,257 thousand, with a significant reduction in trade receivables and an increase in contract assets, while total equity and liabilities also saw minor changes [Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position_Detailed) As of June 30, 2025, total assets were HK$1,037,257 thousand, a slight decrease from December 31, 2024, with trade receivables significantly down and contract assets up, while total equity and liabilities also slightly decreased Financial Position Comparison (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 130,694 | 127,709 | +2.3% | | Current assets | 906,563 | 937,713 | -3.3% | | **Total assets** | 1,037,257 | 1,065,422 | -2.7% | | **Equity and Liabilities** | | | | | Total equity | 210,915 | 220,036 | -4.2% | | Non-current liabilities | 17,962 | 15,947 | +12.6% | | Current liabilities | 810,395 | 827,424 | -2.1% | | **Total liabilities** | 826,342 | 845,386 | -2.2% | | **Total equity and liabilities** | 1,037,257 | 1,065,422 | -2.7% | - Net trade receivables significantly decreased from **HK$158,961 thousand** as of December 31, 2024, to **HK$78,341 thousand** as of June 30, 2025[3](index=3&type=chunk)[23](index=23&type=chunk) - Contract assets increased from **HK$622,297 thousand** as of December 31, 2024, to **HK$680,130 thousand** as of June 30, 2025[3](index=3&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=4&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the Group's general information, accounting policies, revenue, tax, profit, earnings per share, dividends, and key financial position items including receivables, payables, and contingent liabilities [General Information](index=4&type=section&id=1.%20General%20Information) Dehe Group Holdings Limited, incorporated in the Cayman Islands, listed on the HKEX main board on July 17, 2020, primarily provides renovation and maintenance services for residential and commercial properties in Hong Kong - The Company was incorporated in the Cayman Islands on July 11, 2019, and its shares were listed on the Main Board of the Stock Exchange of Hong Kong on **July 17, 2020**[5](index=5&type=chunk) - The Group's principal activities are the provision of renovation services and repair and maintenance services for residential and commercial properties in Hong Kong[5](index=5&type=chunk) [Basis of Preparation and Accounting Policies](index=4&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) Interim financial information is prepared under HKAS 34 and Listing Rules, read with annual financial statements, adopting relevant amended standards with no material impact, and noting new standards not yet effective - The condensed consolidated interim financial information is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard **34 “Interim Financial Reporting”** issued by the Hong Kong Institute of Certified Public Accountants[6](index=6&type=chunk) - The preparation requires management to make judgments, estimates, and assumptions, where actual results may differ from these estimates[6](index=6&type=chunk) - The Group adopted HKAS 21 and HKFRS 1 (Amendments) “Lack of Exchangeability” during the period, which had no material impact on its performance or financial position[9](index=9&type=chunk) - Several new standards and amendments effective January 1, 2026, or January 1, 2027, are listed, and the Group is assessing their impact[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Revenue and Segment Information](index=6&type=section&id=4.%20Revenue%20and%20Segment%20Information) The Group's chief operating decision maker views renovation and maintenance services as a single operating segment, with HK$448,267 thousand from renovation and HK$2,638 thousand from maintenance for the six months ended June 30, 2025, all revenue and assets originating from Hong Kong Revenue Breakdown (For the six months ended June 30) | Service Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Renovation services | 448,267 | 403,075 | | Repair and maintenance services | 2,638 | 1,608 | | **Total revenue** | **450,905** | **404,683** | - All of the Group's revenue and assets are based in and generated from Hong Kong[15](index=15&type=chunk) [Income Tax Expense](index=7&type=section&id=5.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense decreased to HK$1,035 thousand from HK$1,872 thousand in the prior period, with Hong Kong profits tax levied at 8.25% for the first HK$2 million and 16.5% for the remainder Income Tax Expense Comparison (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current income tax - Provision for the period | 1,035 | 1,463 | -29.3% | | Deferred income tax | 0 | 409 | -100% | | **Total income tax expense** | **1,035** | **1,872** | **-44.8%** | - Hong Kong profits tax is calculated under a two-tiered profits tax regime: **8.25%** on the first **HK$2 million** of assessable profits and **16.5%** on the remaining assessable profits[17](index=17&type=chunk) [Profit for the Period](index=7&type=section&id=6.%20Profit%20for%20the%20Period) Profit for the period is stated after deducting key expenses including subcontracting fees, material costs, depreciation, employee benefits, and finance costs, with subcontracting fees and material costs increasing year-on-year, while depreciation of right-of-use assets significantly decreased Key Deductions from Profit for the Period (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Subcontracting fees | 270,011 | 251,826 | +7.2% | | Material costs | 88,189 | 53,616 | +64.5% | | Depreciation of plant and equipment | 283 | 459 | -38.4% | | Depreciation of right-of-use assets | 6,973 | 2,417 | +188.5% | | Employee benefit expenses (including directors' emoluments) | 53,050 | 52,229 | +1.6% | | Interest expense on borrowings | 17,106 | 17,351 | -1.4% | | Interest portion on lease liabilities | 602 | 100 | +502% | [Earnings Per Share](index=8&type=section&id=7.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share remained stable at **0.53 HK cents**, consistent with the prior period, due to no potential dilutive ordinary shares in issue Earnings Per Share (For the six months ended June 30) | Metric | 2025 (HK$/HK cents) | 2024 (HK$/HK cents) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 4,239,000 | 4,272,000 | | Weighted average number of ordinary shares in issue | 800,000,000 | 800,000,000 | | Basic and diluted earnings per share (HK cents) | 0.53 | 0.53 | - Diluted earnings per share is equal to basic earnings per share as there were no potential dilutive ordinary shares in issue during the reporting period[21](index=21&type=chunk) [Dividends](index=8&type=section&id=8.%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, while the 2024 final dividend of **1.67 HK cents** per share was approved by shareholders on June 25, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[22](index=22&type=chunk)[51](index=51&type=chunk) - The 2024 final dividend of **1.67 HK cents** per share (totaling **HK$13,360,000**) was approved by shareholders on **June 25, 2025**[22](index=22&type=chunk) [Trade Receivables](index=8&type=section&id=9.%20Trade%20Receivables) As of June 30, 2025, net trade receivables significantly decreased to HK$78,341 thousand from HK$158,961 thousand on December 31, 2024, with a notable reduction in receivables within 30 days Net Trade Receivables | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2025 | 78,341 | | December 31, 2024 | 158,961 | Trade Receivables Ageing Analysis (Before impairment allowance) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 1 to 30 days | 32,715 | 88,218 | | 31 to 60 days | 17,857 | 56,060 | | 61 to 90 days | 23,746 | 7,413 | | Over 90 days | 4,063 | 7,297 | | **Total** | **78,381** | **158,988** | [Trade Payables](index=9&type=section&id=10.%20Trade%20Payables) As of June 30, 2025, total trade payables decreased to HK$153,945 thousand from HK$171,044 thousand on December 31, 2024, with a significant reduction in payables over 90 days Trade Payables Ageing Analysis | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 1 to 30 days | 109,364 | 125,273 | | 31 to 60 days | 24,842 | 19,891 | | 61 to 90 days | 13,134 | 8,168 | | Over 90 days | 6,605 | 17,712 | | **Total** | **153,945** | **171,044** | [Contingent Liabilities](index=9&type=section&id=11.%20Contingent%20Liabilities) As of June 30, 2025, the Group's contingent liabilities primarily consisted of performance bonds, increasing to HK$148,639 thousand from HK$126,423 thousand on December 31, 2024, related to renovation contracts Contingent Liabilities (Performance bonds) | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2025 | 148,639 | | December 31, 2024 | 126,423 | - The Group provided corporate guarantees for **13 renovation contracts**, which are expected to be released in accordance with the contract terms[26](index=26&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's financial performance, business operations, outlook, indebtedness, liquidity, foreign exchange risk, employee policies, and significant corporate events [Financial Review](index=10&type=section&id=Financial%20Review) For the six months ended June 30, 2025, revenue grew by 11.4% due to more small projects, but gross profit and margin declined due to lower profitability of these projects, while administrative and finance costs remained stable, as did total comprehensive income - Revenue increased by **11.4%** to **HK$450,905 thousand** (2024: HK$404,683 thousand), primarily due to an increase in the number of small-scale projects undertaken[27](index=27&type=chunk)[28](index=28&type=chunk) - Gross profit decreased by **8.0%** to **HK$51,376 thousand** (2024: HK$55,843 thousand), with gross margin declining from **13.8% to 11.4%**, mainly due to lower profit margins on small-scale projects[29](index=29&type=chunk) - Administrative expenses and finance costs remained relatively stable at approximately **HK$30,592 thousand** and **HK$17,708 thousand**, respectively[31](index=31&type=chunk)[32](index=32&type=chunk) - Profit and total comprehensive income for the period attributable to owners of the Company remained relatively stable at approximately **HK$4,239 thousand**[33](index=33&type=chunk) [Business Review and Outlook](index=11&type=section&id=Business%20Review%20and%20Outlook) As an experienced Hong Kong contractor, the Group provides renovation and maintenance services, holding 62 projects worth approximately HK$5,275 million as of June 30, 2025, and plans to leverage AI and big data for business stability, digital transformation, efficiency, and cost reduction amidst a slowing construction industry - The Group is an established contractor in Hong Kong with over **21 years** of operating history, providing renovation and repair and maintenance services[34](index=34&type=chunk) - As of June 30, 2025, the Group had **62 renovation projects** on hand with a total contract sum of approximately **HK$5,275 million** (December 31, 2024: 60 projects, approximately HK$5,371 million)[35](index=35&type=chunk) - The growth of Hong Kong's construction industry continues to slow, with the second half of 2025 expected to be challenging, yet government policies and industry trends present both challenges and opportunities[36](index=36&type=chunk) - The Group will allocate resources to develop its core business, explore potential opportunities, and prioritize advanced technologies and solutions, particularly **AI and big data applications**, to foster business stability, digital transformation, enhance efficiency, and reduce costs[37](index=37&type=chunk) [Indebtedness and Charges on Assets](index=13&type=section&id=Indebtedness%20and%20Charges%20on%20Assets) As of June 30, 2025, total indebtedness was approximately HK$488,002 thousand, a decrease from December 31, 2024, with bank facilities secured by directors' personal guarantees, corporate guarantees, properties, insurance contract investments, and pledged deposits, and no interest rate hedging policy currently in place Total Indebtedness | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2025 | 488,002 | | December 31, 2024 | 498,380 | - Bank facilities are secured by personal guarantees from directors, corporate guarantees, properties held by two directors and an associated company, insurance contract investments of approximately **HK$61,609 thousand**, and pledged time deposits of approximately **HK$4,122 thousand**[40](index=40&type=chunk)[41](index=41&type=chunk) - The Group currently has no interest rate hedging policy but closely monitors interest rate risk[40](index=40&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=14&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group's capital structure remains unchanged since its 2020 listing, with HK$8,000 thousand in issued share capital, funding working capital through operating cash, bank borrowings, and external financing, resulting in a gearing ratio of **67.7%** and current ratio of **1.1** as of June 30, 2025 - The Company's issued share capital is **HK$8,000 thousand**, comprising **800,000,000 ordinary shares** in issue[42](index=42&type=chunk) - Working capital requirements are primarily financed by cash generated from operations, bank borrowings, and other external financing[42](index=42&type=chunk) Liquidity and Capital Structure Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 67.7% | 66.3% | | Current ratio | 1.1 | 1.1 | [Foreign Exchange Risk](index=14&type=section&id=Foreign%20Exchange%20Risk) The Group's significant transactions, assets, and liabilities are primarily denominated in HKD, resulting in no significant foreign exchange risk, with no hedging instruments currently used, but close monitoring and future policy consideration are in place - The Group's business is primarily denominated in Hong Kong dollars, resulting in no significant foreign exchange risk[44](index=44&type=chunk) - No financial instruments were used for hedging during the reporting period[44](index=44&type=chunk) [Employees and Remuneration Policy](index=15&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 223 employees, with remuneration including salaries, discretionary year-end bonuses, other allowances, and MPF contributions, determined by qualifications, experience, and performance, and employee benefit expenses slightly increased year-on-year - As of June 30, 2025, the Group employed **223 staff** (December 31, 2024: 233 staff)[45](index=45&type=chunk) - Remuneration packages include salaries, discretionary year-end bonuses, and other cash allowances, along with Mandatory Provident Fund (MPF) contributions[45](index=45&type=chunk) - Employee benefit expenses (including directors' emoluments) were approximately **HK$53,050 thousand** (2024: HK$52,229 thousand)[45](index=45&type=chunk) [Material Investments, Acquisitions or Disposals](index=15&type=section&id=Material%20Investments%2C%20Acquisitions%20or%20Disposals) During the reporting period, the Group had no material investments, acquisitions, or disposals, nor has the Board authorized any formal plans for such future activities - There were no material investments, acquisitions, or disposals during the reporting period[46](index=46&type=chunk) - The Board has not authorized any formal plans for material investments, acquisitions, or disposals[46](index=46&type=chunk) [Future Plans for Material Investments or Capital Assets](index=15&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had no other future plans for material investments or capital assets - There were no other future plans for material investments or capital assets[47](index=47&type=chunk) [Capital Commitments](index=15&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no material capital commitments - There were no material capital commitments[48](index=48&type=chunk) [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities_MD%26A) Aside from disclosed performance bonds, the Group had no other material contingent liabilities as of June 30, 2025 - Save for the performance bonds disclosed, there were no other material contingent liabilities as at June 30, 2025[49](index=49&type=chunk) [Events After the Reporting Period](index=15&type=section&id=Events%20After%20the%20Reporting%20Period) No other significant events occurred after the reporting period and up to the date of this announcement - No other significant events occurred after the reporting period[50](index=50&type=chunk) [Corporate Governance and Other Information](index=16&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers interim dividend policy, securities transactions, directors' compliance, corporate governance practices, share options, director information changes, interim results review, and publication details [Interim Dividend](index=16&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend[51](index=51&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[52](index=52&type=chunk) [Directors' Securities Transactions](index=16&type=section&id=Directors%27%20Securities%20Transactions) The Company adopted the Model Code in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with it during the reporting period - The Company has adopted the Model Code as set out in Appendix C3 of the Listing Rules[53](index=53&type=chunk) - All Directors confirmed compliance with the Model Code during the reporting period[53](index=53&type=chunk) [Corporate Governance Practices](index=16&type=section&id=Corporate%20Governance%20Practices) Except for the combined roles of Chairman and Chief Executive Officer, the Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, with the Board deeming Mr Wu's dual role beneficial due to his experience and independent non-executive directors' oversight - The Company complied with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer[54](index=54&type=chunk)[55](index=55&type=chunk) - The Board believes Mr. Wu's dual role is in the best interest of the Group due to his industry experience, familiarity with the business, and sufficient safeguards provided by Board consultations and the independent views of three independent non-executive Directors[55](index=55&type=chunk) [Share Options](index=17&type=section&id=Share%20Options) The share option scheme, conditionally adopted on June 16, 2020, aims to recognize and incentivize eligible participants, with no outstanding share options as of June 30, 2025 - The Share Option Scheme was adopted on **June 16, 2020**, to recognize, motivate, and retain eligible participants[56](index=56&type=chunk) - As of June 30, 2025, no share options had been granted and remained outstanding under the Share Option Scheme[57](index=57&type=chunk) [Changes in Directors' Information](index=17&type=section&id=Changes%20in%20Directors%27%20Information) Dr. Ho Ka Yan has been appointed as a member of the Company's Nomination Committee, effective June 30, 2025 - Dr. Ho Ka Yan was appointed as a member of the Nomination Committee with effect from **June 30, 2025**[58](index=58&type=chunk) [Review of Interim Results](index=18&type=section&id=Review%20of%20Interim%20Results) The condensed consolidated interim financial information was not audited or reviewed by the Company's auditor but was reviewed by the Audit Committee, which, along with management, had no disagreement on accounting principles or practices - The interim financial information has not been audited or reviewed by the Company's auditor[59](index=59&type=chunk) - It has been reviewed by the Audit Committee, which had no disagreement with the accounting principles and practices[59](index=59&type=chunk) [Publication of Interim Results and Interim Report](index=18&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement is published on the HKEX and Company websites, and the interim report will also be published there and dispatched to shareholders - The interim results announcement has been published on the Stock Exchange's website and the Company's website[60](index=60&type=chunk) - The interim report will be published on the websites and dispatched to shareholders[60](index=60&type=chunk) [Acknowledgement](index=18&type=section&id=Acknowledgement) The Board extends gratitude to shareholders, clients, suppliers, subcontractors, bankers, professionals for their continued support, and to the management team and staff for their dedication and contributions - The Board expresses its gratitude to all stakeholders[61](index=61&type=chunk) - The executive Directors are Mr. Wu Chi Chiu and Ms. Chiu Hoi Yin; the independent non-executive Directors are Mr. Yip Kit Chau, Mr. Law Hung Wai, and Dr. Ho Ka Yan[63](index=63&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聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 截至二零二五年六月三十日止六個月 中期業績公告 財務摘要 業績 安東油田服務集團（「本公司」）董事會（「董事會」）宣佈本公司及其附屬公司（合稱 「本集團」）截至二零二五年六月三十日止六個月（下稱「二零二五年上半年」或「報 告期內」）的未經審核簡明合併中期業績及二零二四年同期的比較數字如下： 1 • 本集團二零二五年上半年之綜合收入為人民幣約2,631.1百萬元，相比二零 二四年上半年的人民幣約2,176.3百萬元上升20.9%。 • 本集團二零二五年上半年淨利潤為人民幣約166.3百萬元，相比二零二四年 上半年的人民幣約111.6百萬元增長49.0%。 • 本集團二零二五年上半年權益持有人應佔利潤為人民幣約165.1百萬元，相 比二零二四年上半年的人民幣約105.9百萬元增長55.9%。 • 本集團二零二五年上半年經營性現金淨流入為人民幣約370.0百萬元，相比 二零二四年同期的人民幣約345.7百萬元增 ...

[Condensed Consolidated Interim Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue decreased by 16.67% year-on-year, gross profit turned from loss to gain, but operating loss and loss for the period persisted, with basic loss per share narrowing to RMB0.050 | Metric | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 70,195 | 84,237 | -16.67% | | Cost of Goods Sold | (67,219) | (88,210) | -23.80% | | Gross Profit / (Loss) | 2,976 | (3,973) | Turned from Loss to Profit | | Other Income | 1,571 | 691 | 127.35% | | Selling and Distribution Expenses | (10,605) | (13,276) | -19.97% | | Administrative Expenses | (15,127) | (17,695) | -14.51% | | Research and Development Expenses | (7,068) | (6,768) | 4.43% | | Operating Loss | (28,705) | (38,530) | -25.49% | | Loss for the Period | (31,000) | (43,495) | -28.73% | | Loss Attributable to Equity Holders of the Company | (30,935) | (43,406) | -28.74% | | Basic Loss Per Share (RMB) | (0.050) | (0.071) | -29.58% | [Condensed Consolidated Interim Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's total comprehensive loss for the period narrowed to RMB32,723,000, primarily due to reduced loss for the period, despite other comprehensive loss from fair value changes in equity investments | Metric | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (31,000) | (43,495) | -28.73% | | Fair Value Change of Equity Investments at Fair Value Through Other Comprehensive Income | (676) | (3,487) | -80.60% | | Income Tax Relating to These Items | (1,047) | 713 | Tax Impact Change | | Other Comprehensive Loss for the Period, Net of Tax | (1,723) | (2,774) | -37.81% | | Total Comprehensive Loss for the Period | (32,723) | (46,269) | -29.29% | | Total Comprehensive Loss Attributable to Equity Holders of the Company | (32,620) | (46,100) | -29.24% | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and shareholders' equity significantly decreased, with current liabilities exceeding current assets, indicating substantial financial pressure | Metric | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current Assets | 66,021 | 79,868 | -17.34% | | Current Assets | 93,049 | 126,270 | -26.31% | | Total Assets | 159,070 | 206,138 | -22.83% | | **Equity** | | | | | Capital and Reserves Attributable to Equity Holders of the Company | (21,416) | 11,204 | Turned from Profit to Loss | | Non-controlling Interests | (1,976) | (1,873) | 5.50% | | Total Equity | (23,392) | 9,331 | Turned from Profit to Loss | | **Liabilities** | | | | | Non-current Liabilities | 28,633 | 24,448 | 17.12% | | Current Liabilities | 153,829 | 172,359 | -10.75% | | Total Liabilities | 182,462 | 196,807 | -7.39% | [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [General Information](index=6&type=section&id=General%20Information) Jolimark Holdings Limited, incorporated in the Cayman Islands, primarily manufactures and sells printers and other electronic/non-electronic products in Mainland China, listed on the HKEX since 2005 - The company is incorporated in the Cayman Islands, with its principal business being the manufacture and sale of printers and other electronic/non-electronic products in Mainland China[9](index=9&type=chunk) - The company has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **June 29, 2005**[10](index=10&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The interim financial statements are prepared under HKAS 34, but the company faces significant going concern uncertainties, including losses, net operating cash outflows, and current liabilities exceeding current assets, with management implementing mitigation plans - For the six months ended June 30, 2025, the Group recorded a **loss of approximately RMB31,000,000** and **net operating cash outflows of approximately RMB2,315,000**[13](index=13&type=chunk) - As of June 30, 2025, the Group's **current liabilities exceeded its current assets by approximately RMB60,780,000**[13](index=13&type=chunk) - The Group has implemented several mitigation measures, including the successful renewal of bank borrowings of **RMB20,000,000**, an expected stable demand in the domestic dot matrix printer market and expansion into emerging markets, strict cost control, and securing standby financing of **RMB35,000,000** from the controlling shareholder[16](index=16&type=chunk)[18](index=18&type=chunk) [Accounting Policies](index=8&type=section&id=Accounting%20Policies) The Group adopted HKAS 21 (Revised) "Lack of Exchangeability" with no significant impact, and new/revised standards issued but not yet effective are not expected to materially affect operations - The Group mandatorily adopted HKAS 21 (Revised) "Lack of Exchangeability" for the financial year beginning January 1, 2025, with **no significant impact on accounting policies**[21](index=21&type=chunk) - New and revised standards issued but not yet effective, including HKFRS 9 and HKFRS 7 (Amendments), are **not expected to have a material impact** on the Group's operations[22](index=22&type=chunk)[23](index=23&type=chunk) [Segment Information](index=9&type=section&id=Segment%20Information) The Group's main operating segments are printers and other products, with printer business contributing approximately 89% of total revenue for the six months ended June 30, 2025, though both segments recorded losses Segment Performance (RMB Thousand) | Metric | Printers (RMB Thousand) | Other Products (RMB Thousand) | Total (RMB Thousand) | | :--- | :--- | :--- | :--- | | **Six Months Ended June 30, 2025** | | | | | Revenue from External Customers | 62,581 | 7,614 | 70,195 | | Segment Results | (12,872) | (1,825) | (14,697) | | Selling and Distribution Expenses | (8,247) | (2,358) | (10,605) | | Research and Development Expenses | (6,954) | (114) | (7,068) | | **Six Months Ended June 30, 2024** | | | | | Revenue from External Customers | 71,741 | 12,496 | 84,237 | | Segment Results | (24,390) | 373 | (24,017) | | Selling and Distribution Expenses | (12,499) | (777) | (13,276) | | Research and Development Expenses | (5,452) | (1,316) | (6,768) | Revenue by Region (RMB Thousand) | Region | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | In Mainland China | 67,216 | 82,009 | | Overseas | 2,979 | 2,228 | | Total | 70,195 | 84,237 | - For the six months ended June 30, 2025, approximately **24% of total revenue** was derived from a single external customer in the printer segment (2024: 44%)[26](index=26&type=chunk) [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) The Group's income tax expense primarily includes Hong Kong profits tax, dividend withholding tax, and deferred income tax, with varying corporate income tax rates for Mainland China entities based on high-tech enterprise status Income Tax Expense (RMB Thousand) | Tax Category | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Income Tax Expense | | | | - Hong Kong Profits Tax | 25 | – | | - Dividend Withholding Tax | 25 | – | | Deferred Income Tax | 37 | – | | Total | 87 | – | - The Hong Kong profits tax rate is **16.5%**[28](index=28&type=chunk) - Jiangyu Information, a principal operating entity, enjoys a preferential corporate income tax rate of **15%** due to its High and New Technology Enterprise qualification (2024: 15%), while other Mainland China entities are taxed at **25%**[29](index=29&type=chunk) - Dividends paid to foreign investors are subject to a **10% withholding income tax**, with a reduced rate of **5%** applicable to Hong Kong companies under tax treaty arrangements[30](index=30&type=chunk) [Loss Per Share](index=12&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, the company's basic and diluted loss per share both narrowed to RMB0.050, with share options excluded from diluted loss calculation due to their anti-dilutive effect Loss Per Share (RMB) | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (0.050) | (0.071) | - The **700,000 outstanding share options** were not included in the calculation of diluted loss per share as they had an anti-dilutive effect[33](index=33&type=chunk) [Dividends](index=12&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[34](index=34&type=chunk) [Trade and Other Receivables](index=13&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables significantly decreased to RMB29,288,000, primarily due to a substantial drop in bills receivable, while overdue trade receivables increased Trade and Other Receivables (RMB Thousand) | Metric | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables - Third Parties (Net) | 14,347 | 13,540 | 5.96% | | Bills Receivable (Net) | 1,878 | 15,547 | -87.91% | | Prepayments - Third Parties | 2,995 | 1,557 | 92.36% | | Other Receivables (Net) | 9,968 | 10,186 | -2.00% | | Total | 29,288 | 40,930 | -28.44% | Trade Receivables Aging (RMB Thousand) | Trade Receivables Aging | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Less than 30 days | 5,704 | 7,681 | | 31 to 90 days | 4,950 | 3,335 | | 91 to 180 days | 2,647 | 2,109 | | 181 to 365 days | 1,043 | 415 | | Over 365 days | 3 | – | | Total | 14,347 | 13,540 | - As of June 30, 2025, approximately **RMB5,101,000 of trade receivables were overdue** (December 31, 2024: RMB3,715,000)[36](index=36&type=chunk) [Trade and Other Payables](index=14&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to RMB54,185,000, primarily driven by a rise in trade payables Trade and Other Payables (RMB Thousand) | Metric | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables - Third Parties | 38,742 | 26,874 | 44.16% | | Other Payables and Accrued Expenses - Third Parties | 13,820 | 12,362 | 11.79% | | Other Payables and Accrued Expenses - Related Parties | 585 | 4,779 | -87.79% | | Refund Liabilities - Third Parties | 642 | 861 | -25.44% | | Dividends Payable | 396 | 396 | 0.00% | | Total | 54,185 | 45,272 | 19.69% | Trade Payables Aging (RMB Thousand) | Trade Payables Aging | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Less than 30 days | 2,314 | 4,755 | | 31 to 90 days | 22,757 | 14,051 | | 91 to 180 days | 11,719 | 6,606 | | 181 to 365 days | 578 | 385 | | Over 365 days | 1,374 | 1,077 | | Total | 38,742 | 26,874 | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=15&type=section&id=Business%20Review) For the six months ended June 30, 2025, both the Group's printer and other product businesses experienced revenue declines, mainly due to the widespread adoption of electronic invoices in Mainland China and reduced consumables sales [Printer Business](index=15&type=section&id=Printer%20Business) Printer business revenue was approximately RMB62,581,000, accounting for about 89% of total revenue, a decrease of approximately 13% year-on-year, primarily due to the full implementation of digital electronic invoices and insufficient market demand in Mainland China - Printer business revenue was approximately **RMB62,581,000**, accounting for approximately **89% of the Group's total revenue**[38](index=38&type=chunk) - Printer business revenue decreased by approximately **13%** compared to the same period in 2024, primarily due to the continued widespread implementation of digital electronic invoices in Mainland China and insufficient market demand[38](index=38&type=chunk) [Other Products](index=15&type=section&id=Other%20Products) Other products business revenue was approximately RMB7,614,000, accounting for about 11% of total revenue, a decrease of approximately 39% year-on-year, mainly due to reduced consumables sales in 2025 - Other products business revenue was approximately **RMB7,614,000**, accounting for approximately **11% of the Group's total revenue**[39](index=39&type=chunk) - Other products business revenue decreased by approximately **39%** compared to the same period in 2024, primarily due to reduced consumables sales in 2025[39](index=39&type=chunk) [Future Business Outlook](index=15&type=section&id=Future%20Business%20Outlook) Despite the decline in traditional printer business, the medical product business is steadily growing, and the company plans to optimize printer products, explore new printing scenarios, launch AI-powered inkjet printers, develop self-service terminal businesses, and expand medical device product lines for new growth - The company anticipates that the Chinese government will continue to introduce various policies to stimulate consumption and support manufacturing in 2025, with **market demand expected to recover**[40](index=40&type=chunk) - The company will continue to focus on the enterprise and industry document printing market, launch the web version of the E-billing inventory management software, and plans to introduce new versions of archive box printers and grand theater ticket thermal printers[41](index=41&type=chunk) - In the inkjet printing business, the "Cai Zhi e-Office" series of printers, featuring AI automatic content recognition, has been launched, and upgraded continuous paper inkjet printers and card inkjet printers are expected to be released in 2025[42](index=42&type=chunk) - In the self-service terminal business, sales of AI-powered robotic arm coffee vending machines, wearable nail art machines, and nail art machines are showing an **upward trend**[43](index=43&type=chunk) - In medical devices, the company has obtained the China medical device product registration certificate for its 5L desktop oxygen concentrator, plans to have a full product line of portable oxygen concentrators equivalent to 3L to 8L by the end of 2025, and is developing 7L and 10L desktop models, discussing in-car oxygen concentrator business with automotive manufacturers, and collaborating with Guangzhou Mingyi Technology on invasive ventilator R&D[44](index=44&type=chunk)[45](index=45&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's operating revenue decreased by 17% year-on-year, and loss attributable to shareholders narrowed, but total assets and shareholders' equity declined, liquidity ratio deteriorated, and gearing ratio increased, indicating ongoing financial challenges [Performance Summary](index=17&type=section&id=Performance%20Summary) For the six months ended June 30, 2025, operating revenue was approximately RMB70,195,000, a decrease of about 17% year-on-year, with loss attributable to shareholders narrowing to RMB30,935,000, primarily due to insufficient printer market demand and asset impairment - Operating revenue was approximately **RMB70,195,000**, a decrease of approximately **17%** compared to the same period last year[46](index=46&type=chunk) - Loss attributable to equity holders of the Company was approximately **RMB30,935,000**, narrowing from a loss of RMB43,406,000 in the same period last year[46](index=46&type=chunk) - Basic loss per share was approximately **RMB0.050** (2024: RMB0.071)[46](index=46&type=chunk) - The loss was primarily due to insufficient market demand for printers caused by the continued widespread implementation of digital electronic invoices in Mainland China, and the recognition of asset impairment[46](index=46&type=chunk) [Sales and Gross Profit Analysis](index=17&type=section&id=Sales%20and%20Gross%20Profit%20Analysis) Total sales revenue for the first half of 2025 was RMB70,195,000, a decrease of approximately 17% year-on-year, mainly due to insufficient printer market demand, while consolidated gross profit increased to RMB2,976,000, with a gross margin of 4%, primarily due to significantly reduced asset impairment - Total sales revenue was **RMB70,195,000**, a decrease of approximately **17%** compared to the same period in 2024[47](index=47&type=chunk) - Consolidated gross profit was **RMB2,976,000**, with the consolidated gross profit margin increasing to **4%**, primarily due to a significant reduction in asset impairment compared to the same period in 2024[47](index=47&type=chunk) [Capital Expenditure](index=17&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure was approximately RMB1,629,000, primarily for the acquisition of production equipment and customization of product molds - Capital expenditure was approximately **RMB1,629,000**, primarily for the acquisition of production equipment and customization of product molds[48](index=48&type=chunk) [Assets, Liabilities and Liquidity](index=18&type=section&id=Assets%2C%20Liabilities%20and%20Liquidity) As of June 30, 2025, the Group's total assets were approximately RMB159,070,000, a 22.83% decrease from the end of 2024, with shareholders' equity turning from profit to loss, liquidity ratio declining to 0.60, and gearing ratio rising to 72.7%, indicating increased liquidity pressure Financial Position and Liquidity (RMB Thousand) | Metric | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 159,070 | 206,138 | -22.83% | | Equity Holders of the Company | (21,416) | 11,204 | Turned from Profit to Loss | | Current Liabilities | 153,829 | 172,359 | -10.75% | | Current Ratio | 0.60 | 0.73 | -17.81% | | Cash and Cash Equivalents and Restricted Cash | 12,128 | 24,714 | -50.92% | | Total Borrowings | 115,618 | 140,797 | -17.99% | | Gearing Ratio | 72.7% | 68.3% | 6.44% | | Bills Receivable | 1,886 | 15,617 | -87.91% | - The decrease in the current ratio was primarily due to a **decrease in current assets of approximately RMB33,221,000** during the year[49](index=49&type=chunk) [Financial Assets at Fair Value Through Other Comprehensive Income](index=18&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of June 30, 2025, the Group's equity investments in private enterprises had a fair value of RMB8,645,000, with a significant portion in Elephant Cloud Information Technology Co., Ltd., aligning with the strategy to invest in companies with synergistic effects - As of June 30, 2025, the fair value of the company's investments was **RMB8,645,000** (December 31, 2024: RMB9,321,000)[52](index=52&type=chunk) - Of this, a **0.33% equity interest** in Elephant Cloud Information Technology Co., Ltd. (engaged in invoice and tax information management service solutions) accounted for **RMB6,312,000**, representing approximately **73.01%** of the Group's financial assets at fair value through other comprehensive income[52](index=52&type=chunk) - The company's investment strategy is to invest in companies engaged in upstream or downstream industries that generate **synergistic effects** with the Group's business[53](index=53&type=chunk) [Pledged Assets](index=18&type=section&id=Pledged%20Assets) As of June 30, 2025, property, plant and equipment, and right-of-use assets totaling RMB37,858,000 were pledged as collateral for the Group's bank borrowings of RMB88,000,000 - As of June 30, 2025, property, plant and equipment and right-of-use assets totaling **RMB37,858,000** were pledged as collateral for the Group's bank borrowings of **RMB88,000,000**[54](index=54&type=chunk) [Foreign Currency Risk](index=19&type=section&id=Foreign%20Currency%20Risk) The Group faces foreign currency exchange risk from assets and liabilities denominated in HKD, USD, TWD, and EUR, primarily due to raw material imports, overseas sales, and foreign currency borrowings, which is managed by reviewing net exposures and reducing financial liabilities when necessary - The Group is exposed to foreign currency exchange risk arising from assets and liabilities denominated in HKD, USD, TWD, and EUR, primarily due to the import of raw materials and machinery, sales to overseas customers, and foreign currency borrowings[55](index=55&type=chunk) - The Group manages and monitors this risk by regularly reviewing its net foreign currency exposure and mitigating the impact of exchange rate fluctuations by reducing financial liabilities when necessary[55](index=55&type=chunk) [Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=19&type=section&id=Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - The Group had **no significant acquisitions or disposals** of subsidiaries, associates, or joint ventures during the period[56](index=56&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities** (December 31, 2024: nil)[57](index=57&type=chunk) [Employees](index=19&type=section&id=Employees) As of June 30, 2025, the Group employed 541 staff, a decrease from 572 at the end of 2024, with most employees in Mainland China, compensated based on performance, and offered benefits including social insurance, medical subsidies, housing provident funds, and a share option scheme - As of June 30, 2025, the Group employed a total of **541 staff** (December 31, 2024: 572 staff)[58](index=58&type=chunk) - All Group employees, except for **6 staff employed in Hong Kong and overseas**, are located in Mainland China[58](index=58&type=chunk) - The Group applies a salary and bonus policy based on performance and individual employee contributions, provides benefits such as social insurance, medical subsidies, and housing provident funds, and has adopted a share option scheme to reward and incentivize employees[58](index=58&type=chunk) [Post-Balance Sheet Events](index=19&type=section&id=Post-Balance%20Sheet%20Events) There were no other significant events subsequent to the period and up to the date of this announcement - There were **no other significant events** subsequent to the period and up to the date of this announcement[59](index=59&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[60](index=60&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Compliance with Corporate Governance Code](index=20&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company adhered to all code provisions of the Corporate Governance Code for the six months ended June 30, 2025, except for the Chairman's absence from the AGM due to other business commitments, constituting a deviation from code provision F.2.2 - The company complied with **all code provisions** of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2025[61](index=61&type=chunk) - A deviation from code provision F.2.2 of the Corporate Governance Code occurred as Mr Ou Baixian, the Chairman of the Board, was **unable to attend the Annual General Meeting** held on May 28, 2025[61](index=61&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during 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 six months ended June 30, 2025[62](index=62&type=chunk) [Standard Code for Securities Transactions](index=20&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers and confirmed full compliance by all directors for the six months ended June 30, 2025 - The company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as its own code of conduct regarding directors' securities transactions[63](index=63&type=chunk) - All directors confirmed full compliance with the requirements set out in the Model Code for the six months ended June 30, 2025[63](index=63&type=chunk) [Review of Condensed Consolidated Interim Financial Information](index=20&type=section&id=Review%20of%20Condensed%20Consolidated%20Interim%20Financial%20Information) The Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, was reviewed by the Audit Committee and by independent auditor Gadori CPA Limited in accordance with HKSRE 2410 - The Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, has been **reviewed by the Audit Committee**[64](index=64&type=chunk) - The financial information has also been reviewed by the independent auditor, Gadori CPA Limited, in accordance with **Hong Kong Standard on Review Engagements 2410** issued by the Hong Kong Institute of Certified Public Accountants[65](index=65&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=21&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is published on the HKEX and company websites, and the interim report for the six months ended June 30, 2025, will be dispatched to shareholders and available on these websites in due course - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.jolimark.com)[66](index=66&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to the company's shareholders and made available on the aforementioned websites in due course[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 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 MIDEA REAL ESTATE HOLDING LIMITED 美的置業控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3990） 截 至2025年6月30日 止 六 個 月 中 期 業 績 財 務 摘 要 截 至2025年6月30日 止 六 個 月，本 集 團 持 續 經 營 業 務 營 業 收 入 為 人 民 幣 1,996.59百 萬 元，較2024年 同 期 增 長41.3%。其 中，物 管 服 務 收 入 為 人 民 幣 929.99百 萬 元，較2024年 同 期 增 長8.7%，資 產 運 營 收 入 為 人 民 幣274.93百 萬 元，較2024年 同 期 增 長13.9%，房 地 產 科 ...

Interim Results Announcement [2025 Interim Results Summary](index=1&type=section&id=2025%20Interim%20Results%20Summary) The Group reported RMB304.5 million in revenue and a RMB41.1 million loss before tax for H1 2025, driven by reduced service demand and asset impairment Key Operating Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Outpatient medical services revenue | 182,520 | 244,616 | (25.4)% | | Outpatient visits | 103,344 | 141,128 | (26.8)% | | Inpatient medical services revenue | 102,786 | 145,285 | (29.3)% | | Inpatient visits | 3,411 | 4,429 | (23.0)% | - For the six months ended June 30, 2025, revenue was **RMB304.5 million**, a decrease compared to the prior period[4](index=4&type=chunk) - For the six months ended June 30, 2025, the Group recorded a **loss before income tax of RMB41.1 million**, compared to a profit of RMB72.2 million in the prior period[4](index=4&type=chunk) - The loss was primarily due to a **RMB111.5 million decrease in revenue** from reduced demand for pediatric and obstetrics & gynecology services, along with a **goodwill impairment loss of RMB12.5 million** and an **impairment loss on property, plant and equipment of RMB21.2 million**[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited interim condensed consolidated financial statements for H1 2025, reflecting a shift from profit to loss and reduced asset and equity values [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For H1 2025, the Group reported RMB304,528 thousand in revenue, an operating loss of RMB40,095 thousand, and a loss attributable to owners of RMB65,234 thousand Interim Condensed Consolidated Statement of Comprehensive Income (Summary) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 304,528 | 415,956 | | Cost of revenue | (214,882) | (247,237) | | Impairment loss on non-current assets | (33,737) | — | | Operating (loss)/profit | (40,095) | 72,363 | | (Loss)/profit before income tax | (41,088) | 72,169 | | Income tax expense | (17,719) | (23,862) | | (Loss)/profit for the interim period | (58,807) | 48,307 | | (Loss)/profit attributable to owners of the Company | (65,234) | 25,193 | | Basic and diluted (loss)/earnings per share (RMB) | (0.14) | 0.05 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets decreased to RMB836,782 thousand, with equity attributable to owners at RMB478,856 thousand and total liabilities at RMB396,449 thousand Interim Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total non-current assets | 424,203 | 478,712 | | Total current assets | 412,579 | 460,422 | | Total assets | 836,782 | 939,134 | | Equity attributable to owners of the Company | 478,856 | 553,826 | | Total equity | 440,333 | 508,876 | | Total non-current liabilities | 122,642 | 137,979 | | Total current liabilities | 273,807 | 292,279 | | Total liabilities | 396,449 | 430,258 | | Total equity and liabilities | 836,782 | 939,134 | [Notes to Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides notes to the interim condensed consolidated financial information, detailing business nature, reporting basis, segment data, tax, EPS, receivables, payables, and dividends [General Information](index=6&type=section&id=General%20Information) The Group primarily offers pediatric and obstetrics & gynecology specialist services in China, including online medical services, and was listed on the HKEX in 2017 - The Group primarily provides **pediatric and obstetrics & gynecology specialist services** in China, along with online medical services[11](index=11&type=chunk) - The Company was incorporated in the Cayman Islands on July 31, 2015, and listed on the Main Board of the Hong Kong Stock Exchange on January 18, 2017[11](index=11&type=chunk)[12](index=12&type=chunk) [Basis of Preparation of Interim Report](index=6&type=section&id=Basis%20of%20Preparation%20of%20Interim%20Report) The interim condensed consolidated financial information is prepared under HKAS 34, consistent with prior year policies, and new standards are not expected to have a significant impact - The interim condensed consolidated financial information is prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"**[13](index=13&type=chunk) - The accounting policies adopted are consistent with the previous financial year, except for the adoption of new and revised standards, which are not expected to have a significant impact on the Group[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group's segments include pediatric, obstetrics & gynecology, and other services, with both pediatric and obstetrics & gynecology revenues decreasing in H1 2025 - The Group primarily operates three segments: **pediatric services, obstetrics & gynecology services, and other services** (including online medical services, restaurants, gift shops, etc)[16](index=16&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Segment Results (RMB thousands) | 2024 Segment Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Pediatrics | 255,693 | 360,956 | (507) | 95,127 | | Obstetrics & Gynecology | 45,312 | 51,093 | (28,636) | (15,698) | | Others | 3,523 | 3,907 | 2,883 | 546 | | Total (from external customers) | 304,528 | 415,956 | - | - | - The vast majority of revenue from external customers is recognized at a point in time, and all revenue and non-current assets primarily originate from China[19](index=19&type=chunk) [Income Tax Expense](index=8&type=section&id=Income%20Tax%20Expense) Income tax expense for H1 2025 was RMB17,719 thousand, decreasing due to the Group's loss and deferred tax asset reversal, with varying tax rates for Chinese and Hong Kong entities Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax — China corporate income tax | 9,200 | 22,786 | | Deferred income tax | 8,519 | 1,076 | | Total | 17,719 | 23,862 | - Mainland China subsidiaries are subject to a **corporate income tax rate of 25%**, with high-tech enterprises enjoying a **preferential rate of 15%**[22](index=22&type=chunk) - Hong Kong profits tax rate is 16.5%, but no tax was payable during the reporting period[23](index=23&type=chunk) [Earnings Per Share](index=9&type=section&id=Earnings%20Per%20Share) For H1 2025, the loss attributable to owners resulted in a basic and diluted loss per share of **RMB0.14**, with no potential dilutive shares Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | (Loss)/profit attributable to owners of the Company (RMB thousands) | (65,234) | 25,193 | | Weighted average number of ordinary shares outstanding (thousands of shares) | 483,184 | 483,184 | | Basic (loss)/earnings per share (RMB) | (0.14) | 0.05 | - For the six months ended June 30, 2025 and 2024, diluted (loss)/earnings per share were equal to basic (loss)/earnings per share, as there were no potential dilutive shares[26](index=26&type=chunk) [Trade Receivables](index=10&type=section&id=Trade%20Receivables) Net trade receivables decreased by **38.3%** to **RMB28,523 thousand** as of June 30, 2025, primarily from commercial and government insurance Trade Receivables (As of) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables from contracts with customers | 30,219 | 47,683 | | Less: Impairment allowance for trade receivables | (1,696) | (1,533) | | Trade receivables — net | 28,523 | 46,150 | - Trade receivables primarily consist of amounts due from **commercial insurance companies and government insurance schemes**[27](index=27&type=chunk) [Trade Payables](index=11&type=section&id=Trade%20Payables) Total trade payables decreased by **24.1%** to **RMB22,653 thousand** as of June 30, 2025 Trade Payables (As of) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 16,938 | 22,568 | | 4 to 6 months | 3,036 | 5,602 | | 7 months to 1 year | 1,281 | 458 | | Over 1 year | 1,398 | 1,288 | | Total | 22,653 | 29,916 | [Dividends](index=11&type=section&id=Dividends) For H1 2025, the Company paid a final dividend of **RMB7,996 thousand**, a decrease from the prior period, with no dividends to non-controlling shareholders Dividends Paid (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Dividends paid per fully paid ordinary share during the interim period | 7,996 | 14,852 | - For the six months ended June 30, 2025, the Company paid a final dividend of **RMB7,996 thousand** (approximately HK$8,705,000)[29](index=29&type=chunk)[30](index=30&type=chunk) - For the six months ended June 30, 2025, no dividends were declared or paid to non-controlling shareholders of Beijing New Century Children's Hospital Co Ltd, a subsidiary[30](index=30&type=chunk) [Business Overview](index=12&type=section&id=Business%20Overview) The Group's H1 2025 revenue decreased by **26.8%** to **RMB304.5 million**, primarily due to reduced demand for pediatric and obstetrics & gynecology services, prompting new loyalty programs - The Group's business revenue was **RMB304.5 million**, a **26.8% year-over-year decrease**[31](index=31&type=chunk) - Pediatric services revenue was **RMB255.7 million**, a **29.2% year-over-year decrease**; obstetrics & gynecology business revenue was **RMB45.3 million**, an **11.4% year-over-year decrease**[31](index=31&type=chunk) - The significant revenue decrease was primarily due to reduced demand for pediatric and obstetrics & gynecology medical services, influenced by a decline in overall birth rates and lower incidence of internal medicine infectious diseases[32](index=32&type=chunk) - To address the decline in demand, multiple hospital campuses of the Group launched **tiered membership cards and long-term loyalty programs**[32](index=32&type=chunk) - The **loss attributable to owners of the Company was RMB65.2 million**, mainly due to declining business demand and new impairment losses on goodwill, property, plant and equipment[33](index=33&type=chunk) [Industry Outlook & Group Strategy](index=13&type=section&id=Industry%20Outlook%20%26%20Group%20Strategy) National policies and DRG/DIP reforms are shaping the healthcare industry, prompting the Group to focus on brand promotion, tiered membership, pediatric sub-specialties, and staff optimization - National policies, such as the **"Outline for Women's Development in China (2021-2030)"** and the **"Outline for Children's Development in China (2021-2030)"**, promote the development of women's and children's health, leading to significant growth in demand for comprehensive healthcare services[34](index=34&type=chunk) - **DRG/DIP payment reform** imposes higher requirements on the medical technology level of private high-end medical institutions, further highlighting their advantages and attracting individuals seeking quality services, long treatment courses, complex conditions, and mid-to-high-end commercial medical insurance[35](index=35&type=chunk) - The Group's strategy includes: **brand promotion among mid-to-high-end commercial insurance institutions**; promoting a **tiered membership card strategy** to lower renewal thresholds; focusing on **pediatric sub-specialty development** and restructuring child healthcare service product lines; and **optimizing staff structure** to enhance efficiency[37](index=37&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) This section reviews the Group's H1 2025 financial performance, highlighting significant declines in revenue, gross profit, and gross margin, a shift to operating loss, and impacts on balance sheet items and liquidity [Segment Revenue](index=14&type=section&id=Segment%20Revenue) Medical services generated **RMB301,005 thousand** in H1 2025, representing **98.8%** of total revenue, with pediatric services contributing **84.0%** and obstetrics & gynecology **14.8%** Revenue Breakdown (For the six months ended June 30) | Item | 2025 (RMB thousands) | Proportion (%) | 2024 (RMB thousands) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Medical services | 301,005 | 98.8% | 412,049 | 99.1% | | Others | 3,523 | 1.2% | 3,907 | 0.9% | | Total | 304,528 | 100.0% | 415,956 | 100.0% | Composition of Pediatric and Obstetrics & Gynecology Services Revenue (For the six months ended June 30) | Service Type | 2025 (RMB thousands) | Proportion (%) | 2024 (RMB thousands) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Pediatric services | 255,693 | 84.0% | 360,956 | 86.8% | | Obstetrics & Gynecology services | 45,312 | 14.8% | 51,093 | 12.3% | | Total | 301,005 | 98.8% | 412,049 | 99.1% | [Cost of Revenue, Gross Profit & Gross Margin](index=15&type=section&id=Cost%20of%20Revenue%2C%20Gross%20Profit%20%26%20Gross%20Margin) For H1 2025, medical services cost of revenue decreased by **13.4%** to **RMB209.9 million**, while gross profit fell **46.9%** to **RMB89.6 million**, and gross margin declined to **29.4%** Medical Services Revenue, Cost, Gross Profit & Gross Margin (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 301,005 | 412,049 | | Cost of revenue | 209,856 | 242,370 | | Gross profit | 91,149 | 169,679 | | Gross margin | 30.3% | 41.2% | - Cost of revenue for medical services was **RMB209.9 million**, a **13.4% year-over-year decrease**[47](index=47&type=chunk) - Gross profit was **RMB89.6 million**, a **46.9% year-over-year decrease**; gross margin decreased from **40.6% to 29.4%**, primarily due to reduced demand for pediatric and obstetrics & gynecology medical services[48](index=48&type=chunk) [Operating Expenses](index=18&type=section&id=Operating%20Expenses) Selling expenses increased to **RMB33.9 million**, while administrative and R&D expenses decreased to **RMB59.1 million** and **RMB1.8 million**, respectively, alongside significant asset impairment losses - Selling expenses were **RMB33.9 million**, an **increase of 3.4% year-over-year**, primarily due to enhanced market penetration efforts[49](index=49&type=chunk) - Administrative expenses were **RMB59.1 million**, a **decrease of 2.8% year-over-year**, mainly due to cost reduction and improved operational efficiency[50](index=50&type=chunk) - Research and development expenses were **RMB1.8 million**, an **18.2% year-over-year decrease**, primarily due to reduced R&D activities[51](index=51&type=chunk) - An **impairment loss on non-current assets of RMB33.7 million** was recorded, comprising an **impairment loss on property, plant and equipment of RMB21.2 million** and a **goodwill impairment loss of RMB12.5 million**, mainly due to reduced demand for pediatric and obstetrics & gynecology services and lower-than-expected operating results[52](index=52&type=chunk) - A **net impairment loss on financial assets of RMB1.6 million** was recorded, primarily due to impairment loss on amounts due from related parties[53](index=53&type=chunk) [Financial Income and Expenses](index=19&type=section&id=Financial%20Income%20and%20Expenses) For H1 2025, finance income decreased to **RMB1.7 million** due to lower interest and exchange rate volatility, while finance costs were **RMB3.6 million**, mainly from lease interest - Finance income decreased from **RMB2.8 million to RMB1.7 million**, primarily due to lower interest income and fluctuations in exchange gains/losses[54](index=54&type=chunk) - Finance costs were **RMB3.6 million**, mainly comprising interest expenses related to lease payments[54](index=54&type=chunk) [Income Tax Expense](index=19&type=section&id=Income%20Tax%20Expense_FinancialReview) Income tax expense decreased by **25.9%** to **RMB17.7 million**, primarily due to the Group's loss and a **RMB9.0 million** deferred tax asset reversal - Income tax expense was **RMB17.7 million**, a **25.9% year-over-year decrease**[55](index=55&type=chunk) - The decrease was primarily due to the Group recording a loss and a **RMB9.0 million reversal of deferred tax assets** from wholly-owned subsidiaries[55](index=55&type=chunk) [Loss for the Period](index=19&type=section&id=Loss%20for%20the%20Period) For H1 2025, the Group reported a **loss of RMB58.8 million**, a significant shift from the **RMB48.3 million profit** in the prior period - For the six months ended June 30, 2025, the Group recorded a **loss of RMB58.8 million**, compared to a **profit of RMB48.3 million** in the prior period[56](index=56&type=chunk) [Balance Sheet Items](index=20&type=section&id=Balance%20Sheet%20Items) Inventories, trade receivables, and trade payables all decreased, reflecting a decline in medical business and reduced procurement - Inventories decreased by **16.6%** from **RMB15.7 million to RMB13.1 million**, primarily due to a decline in medical business[57](index=57&type=chunk) - Trade receivables decreased by **38.3%** from **RMB46.2 million to RMB28.5 million**, primarily due to a year-over-year decrease in medical business[58](index=58&type=chunk) - Trade payables decreased by **24.1%** from **RMB29.9 million to RMB22.7 million**, primarily due to reduced usage and procurement of pharmaceuticals and medical consumables[59](index=59&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased by **6.4%** to **RMB331.9 million** as of June 30, 2025, with no significant investments, borrowings, or contingent liabilities, and ongoing monitoring of exchange rate risk - Cash and cash equivalents were **RMB331.9 million**, a **6.4% decrease** compared to December 31, 2024[60](index=60&type=chunk) - For the six months ended June 30, 2025, the Group had **no significant investments, acquisitions, or disposals** of subsidiaries, associates, and joint ventures[61](index=61&type=chunk)[62](index=62&type=chunk) - Capital expenditure was **RMB5.3 million**, a **34.6% year-over-year decrease**, primarily due to reduced related procurement in H1 2025[63](index=63&type=chunk) - The Group had **no borrowings** as of June 30, 2025, and December 31, 2024, thus the gearing ratio is not applicable[64](index=64&type=chunk)[70](index=70&type=chunk) - The Group primarily operates in China, with most transactions settled in RMB, and continuously monitors foreign exchange rate risks[65](index=65&type=chunk) - As of June 30, 2025, there were **no contingent liabilities, guarantees, pledges of assets, or contractual obligations** that would have a material impact on the financial position or operating results[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [Employees and Remuneration Policy](index=22&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **1,233 employees** with total staff costs of **RMB161.1 million**, and remuneration is performance-based, including benefits and share schemes - As of June 30, 2025, the Group had **1,233 employees** (2024: 1,258 employees)[71](index=71&type=chunk) - Total staff costs were **RMB161.1 million** (2024: RMB172.2 million)[71](index=71&type=chunk) - Remuneration is determined based on employee performance, skills, qualifications, and experience, and includes social insurance, housing provident fund, performance bonuses, and discretionary bonuses[71](index=71&type=chunk) - The Group has adopted a **restricted share award scheme and an employee share scheme** to attract, retain, and supervise key employees[71](index=71&type=chunk) [Interim Dividend](index=22&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[72](index=72&type=chunk) [Corporate Governance and Other Information](index=23&type=section&id=Corporate%20Governance%20and%20Other%20Information) The Group adheres to high corporate governance standards, complies with the Standard Code for Securities Transactions, addressed a disciplinary action, and reported no significant post-period events or listed securities transactions [Corporate Governance Code](index=23&type=section&id=Corporate%20Governance%20Code) The Company complies with the Corporate Governance Code, except for the combined Chairman and CEO roles, which the Board believes benefits the Group's strategy - The Company has complied with all applicable code provisions of the Corporate Governance Code, except for **Code Provision C.2.1** (which states that the roles of Chairman and Chief Executive Officer should be separate)[73](index=73&type=chunk) - **Mr. Jason ZHOU** serves as both Chairman and Chief Executive Officer, an arrangement the Board believes benefits the Group's business prospects, management, and overall strategic direction[73](index=73&type=chunk) [Standard Code for Securities Transactions](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company adopted the Standard Code for directors' securities transactions, and all directors and relevant employees confirmed compliance - The Company has adopted the **Standard Code** as its code of conduct for directors' securities transactions and has established guidelines for relevant employees that are no less exacting than the Standard Code[74](index=74&type=chunk) - All directors and relevant employees have confirmed compliance with the Standard Code and the Company's guidelines for securities transactions for the six months ended June 30, 2025[74](index=74&type=chunk) [Disciplinary Action Statement](index=24&type=section&id=Disciplinary%20Action%20Statement) The Stock Exchange issued a disciplinary action statement on June 11, 2025, against the Company and directors for Listing Rule breaches, with all required training now completed - The Stock Exchange issued a **disciplinary action statement** against the Company, three executive directors, and three independent non-executive directors on **June 11, 2025**[75](index=75&type=chunk) - The Stock Exchange Listing Committee alleged that the Company violated several Listing Rules by failing to comply with announcement, circular, and/or shareholder approval requirements for providing financial assistance to connected persons[75](index=75&type=chunk) - The relevant directors breached their obligations under **Listing Rules 3.08 and 3.09B(2)** by failing to use their best endeavors to ensure the Company's compliance with internal controls and the Listing Rules[75](index=75&type=chunk) - All relevant directors have completed the training provided by a Stock Exchange-approved training institution within the stipulated timeframe[76](index=76&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 its subsidiaries purchased, sold, or redeemed any listed securities during the six months ended June 30, 2025 - 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[77](index=77&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee, chaired by Mr. Sun Hongbin, reviewed the Group's unaudited H1 2025 interim results, confirming their preparation according to accounting standards and adequate disclosure - The Audit Committee comprises **Mr. Sun Hongbin (Chairman)**, Mr. Jiang Yanfu (Independent Non-executive Director), and Mr. Yang Yuelin (Non-executive Director)[78](index=78&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and considers them prepared in accordance with relevant accounting standards and adequately disclosed[78](index=78&type=chunk) [Post-Reporting Period Events](index=25&type=section&id=Post-Reporting%20Period%20Events) The Group reported no significant events between June 30, 2025, and the date of this announcement - The Group had no significant events between June 30, 2025, and the date of this announcement[79](index=79&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=25&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is published on the Stock Exchange and Company websites, with the full interim report to follow for shareholders - This interim results announcement is published on the **Stock Exchange website (www.hkexnews.hk)** and the **Company's website (www.ncich.com.cn)**[80](index=80&type=chunk) - The interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course[80](index=80&type=chunk) [Definitions](index=25&type=section&id=Definitions) This section defines key terms and abbreviations used in the announcement to ensure clear understanding of the report content - This section lists definitions for key terms such as the **Board, Audit Committee, Beijing Children's Hospital, Corporate Governance Code, China, the Company, Directors, DRG/DIP payment method, Employee Share Scheme, the Group, Hong Kong, Hong Kong Financial Reporting Standards, HK$, Listing Rules, RMB, Standard Code, Remuneration Committee, Restricted Share Award Scheme, Shares, Shareholders, Stock Exchange, year-over-year, and percentage**[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[88](index=88&type=chunk) [Board of Directors Information](index=27&type=section&id=Board%20of%20Directors%20Information) As of this announcement, the Board of Directors comprises executive, non-executive, and independent non-executive directors, including Mr. Jason ZHOU and Dr. Ma Jing - As of the date of this announcement, the Board of Directors comprises **three executive directors, four non-executive directors, and four independent non-executive directors**[87](index=87&type=chunk) - The executive directors are **Mr. Jason ZHOU, Ms. Xin Hong, and Mr. Xu Han**[87](index=87&type=chunk) - The independent non-executive directors are **Mr. Wu Guanxiong, Mr. Sun Hongbin, Mr. Jiang Yanfu, and Dr. Ma Jing**[87](index=87&type=chunk)

中國蒙牛乳業有限公司* （在開曼群島註冊成立之有限公司） （股份代號：2319） 截至二零二五年六月三十日止六個月 中期業績公佈 摘要 * 僅供識別 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佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CHINA MENGNIU DAIRY COMPANY LIMITED – 1 – • 二零二五年上半年，由於原奶仍階段性供給過剩，需求恢復不及預期，乳製品行 業供需矛盾仍存，本集團實現收入人民幣415.672億元，同比下降6.9%；毛利率同 比提升1.4個百分點至41.7%。 • 本集團積極應對外部挑戰，堅定推進「一體兩翼」戰略落地執行，加速渠道優化和 新業務發展，強化精細化運營和提質增效，全面推動高質量發展，實現經營利潤 人民幣35.382億元，經營利潤率同比提升1.5個百分點至8.5%。權益股東應佔利潤 人民幣20.455億元。 • 本集團積極擁抱消費者對基礎營養、高品質、多元化和精準營養的消費新需求， 上半年推出超百款新品，引領消費者「喝上奶」、「 ...

[Executive Summary](index=1&type=section&id=%E9%87%8D%E9%BB%9E%E6%91%98%E8%A6%81) The company's financial performance for the period shows revenue growth, a decline in gross profit and margin, but an increase in profit for the period Report Period Key Financial Indicators | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 304.9 | 268.5 | +13.6% | | Gross Profit | 85.9 | 99.7 | -13.8% | | Profit for the Period | 56.1 | 52.3 | +7.3% | | Gross Profit Margin | 28.2% | 37.1% | -8.9% | [Financial Highlights](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) This section provides an overview of the company's financial performance and key operating metrics for the period [Financial Summary](index=2&type=section&id=1.%20%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) This section details the unaudited consolidated financial data for the six months ended June 30, 2025, including revenue, gross profit, profit before tax, profit for the period, and net profit margin, compared to the same period Financial Summary for the Six Months Ended June 30 | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 304,876 | 268,501 | 13.5% | | Gross Profit | 85,915 | 99,666 | (13.8%) | | Profit Before Tax | 69,593 | 82,616 | (15.8%) | | Profit for the Period | 56,073 | 52,346 | 7.1% | | Net Profit Margin | 18.4% | 19.5% | (1.1%) | [Operating Metrics](index=2&type=section&id=2.%20%E7%B6%93%E7%87%9F%E6%8C%87%E6%A8%96) During the reporting period, the number of online electronic guides developed by the company significantly increased, reflecting business expansion and enhanced market coverage Number of Online Electronic Guides Developed | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of online electronic guides developed (units) | 75,939 | 66,229 | +14.7% | [Business Review and Outlook](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) This section reviews the company's operational performance, strategic initiatives, and market outlook, highlighting growth drivers and future plans [Performance Highlights](index=3&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) Total revenue increased by 13.6% to RMB 304.9 million, driven by online electronic guide sales, while gross margin declined to 28.2% due to reduced travel agency sales and increased intangible asset amortization, yet profit for the period grew by 7.3% to RMB 56.1 million Report Period Performance Overview | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 304.9 | 268.5 | +13.6% | | Online Electronic Guide Revenue | 304.7 | - | +13.6% | | Gross Profit | 85.9 | 99.7 | -13.8% | | Gross Profit Margin | 28.2% | 37.1% | -8.9% | | Profit | 56.1 | 52.3 | +7.3% | - Selling and distribution expenses decreased by **59.5%** year-on-year, while administrative expenses increased by **10.5%** year-on-year[8](index=8&type=chunk)[10](index=10&type=chunk) - The number of developed online electronic guides increased to **75,939 units**, covering **51,495** tourist attractions in China[8](index=8&type=chunk)[14](index=14&type=chunk) [Business Review](index=4&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) As a market leader in online electronic guides, the company capitalized on tourism recovery, achieving significant revenue growth through product optimization, user experience enhancement, and the adoption of AR, MR, and AI technologies, while also advancing its smart digital marketing SaaS business for scenic areas [Core Business Development](index=4&type=section&id=%E6%A0%B8%E5%BF%83%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95) The company, a market leader in online electronic guides, achieved a 13.6% revenue increase by leveraging the tourism recovery, optimizing products, and implementing cost control measures - The company is a market leader in China and global online electronic guide industry, providing proprietary content guides based on cloud systems[9](index=9&type=chunk) - Revenue increased by **13.6%** year-on-year to **RMB 304.9 million**, benefiting from tourism recovery[10](index=10&type=chunk) - Selling and distribution expenses decreased by approximately **59.4%**, while administrative expenses increased by approximately **10.5%**[10](index=10&type=chunk) [Smart Digital Marketing SaaS Business for Scenic Areas](index=5&type=section&id=%E6%99%AF%E5%8D%80%E6%99%BA%E6%85%A7%E6%95%B8%E4%BD%8D%E5%8C%96%E8%A1%8C%E9%8A%B7SaaS%E6%A5%AD%E5%8B%99) The company continuously enhances its 'Shu Jing Tong' SaaS product to offer smart management, marketing, and service solutions for scenic areas, fostering digital transformation and collaborating with mobile internet content creators to boost product visibility and user conversion - Continuously iterating the "Shu Jing Tong" SaaS product, focusing on smart management, marketing, and services to provide digital marketing solutions for scenic areas[11](index=11&type=chunk) - Collaborating with mobile internet platform content creators to launch selected versions of Lvji electronic travel guides, building a private domain traffic model to achieve simultaneous growth across online OTA and mobile internet platforms[12](index=12&type=chunk) - Developed a smart scenic area management service system to assist government management departments in efficient tourism resource management and researched the SaaS system "Lvji Changyoubao" to enhance scenic area digital operational capabilities[19](index=19&type=chunk)[20](index=20&type=chunk) [Content and Technology Innovation](index=6&type=section&id=%E5%85%A7%E5%AE%B9%E8%88%87%E6%8A%80%E8%A1%93%E5%89%B5%E6%96%B0) The company expands its scenic area coverage and innovates guide content with diverse themes and formats, integrating national IP virtual characters via AR, and developing immersive cultural tourism products using AI large models and MR technology, positioning 'Lvji MR' as a key growth driver - As of June 30, 2025, online electronic guides cover **921 AAAAA-rated**, **5,322 AAAA-rated**, and **5,874 AAA-rated** tourist attractions[16](index=16&type=chunk) - Guide content is multi-dimensionally upgraded, covering themes such as literary classics, local customs, science fiction, and children's education, using creative radio dramas and 3D hand-drawn maps[17](index=17&type=chunk) - Introduced national IP virtual characters to enable instant interaction with users via AR technology, comprehensively upgrading electronic map guide products[18](index=18&type=chunk) - Integrating AI large model technology and MR technology with online electronic guides to create "Void Realm Series offline large-space immersive cultural tourism MR products," positioning it as the company's second growth curve[21](index=21&type=chunk) [Market Outlook and Strategy](index=9&type=section&id=%E5%B8%82%E5%A0%B4%E5%B1%95%E6%9C%9B%E8%88%87%E6%88%B0%E7%95%A5) The company anticipates a rapid recovery in China's tourism market, driven by smart and digital trends, and plans to leverage technological innovation and strategic partnerships to solidify its market leadership and build a comprehensive cultural tourism service platform [Industry Trends and Opportunities](index=9&type=section&id=%E8%A1%8C%E6%A5%AD%E8%B6%A8%E5%8B%A2%E8%88%87%E6%A9%9F%E9%81%87) China's tourism market is rapidly recovering, with a strong shift towards smart and digital solutions, supported by government initiatives to stimulate domestic consumption and enhance digital infrastructure in scenic areas, presenting significant opportunities for the company's technology-driven approach - China's tourism market is accelerating its recovery, with the industry moving towards smart and digital development, and the government introducing multiple measures to stimulate domestic consumption[22](index=22&type=chunk) - National support for "Internet + Tourism" is increasing, with online penetration of travel products expected to rise, accelerating China's tourism digitalization[23](index=23&type=chunk) [Future Development Strategies](index=9&type=section&id=%E6%9C%AA%E4%BE%86%E7%99%BC%E5%B1%95%E7%AD%96%E7%95%A5) The company will maintain its market leadership in online electronic guides by focusing on core strategies, optimizing costs, and building a comprehensive cultural tourism service platform through enhanced products, MR/AI integration, AIGC content creation, and upgraded SaaS solutions - The company will continue to focus on core strategies, maintain its leading position in the online electronic guide market, reduce costs and increase efficiency, and strive to build a full-产业链 cultural tourism service platform[22](index=22&type=chunk)[24](index=24&type=chunk) - Continuously optimize guide products, enrich content, upgrade 3D hand-drawn maps, and integrate MR and AI technologies to enhance consumer interactive experiences[24](index=24&type=chunk) - Apply the latest AIGC technology to produce MR digital visual content for scenic areas, establishing a modern industrial content production and management process for scenic area digital content[24](index=24&type=chunk) - Optimize "Lvji One-Click Tour" by combining it with scenic area digital upgrade needs to build a comprehensive management, operation, and service system; continuously upgrade SaaS business to create a one-stop smart tourism ecosystem platform[25](index=25&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a detailed analysis of the company's financial performance, including income statement, balance sheet, and other key financial information, along with explanations for significant changes [Consolidated Statement of Profit or Loss Analysis](index=11&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8%E5%88%86%E6%9E%90) During the reporting period, the company experienced revenue growth, but a significant increase in cost of sales, driven by online travel platform commissions and intangible asset amortization, led to a decline in gross profit; despite a substantial reduction in selling and distribution expenses, administrative expenses and finance costs rose, yet profit for the period still increased [Revenue](index=12&type=section&id=%E6%94%B6%E7%9B%8A) Total revenue increased by 13.6% to RMB 304.9 million, primarily driven by a 24.8% growth in online electronic guide sales through online travel platforms, while sales to travel agencies and via the Lvji APP, along with customized content sales, all decreased Revenue Details | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Sales of online electronic guides through online travel platforms | 293,304 | 235,038 | 24.8% | | Sales of online electronic guides to travel agencies | 11,371 | 33,019 | (65.5%) | | Sales of online electronic guides through Lvji APP | 74 | 123 | (39.8%) | | Sales of customized content | 127 | 321 | (60.4%) | | **Total Revenue** | **304,876** | **268,501** | **13.6%** | - Sales of online electronic guides through online travel platforms accounted for approximately **96.2%** of total revenue, with growth primarily due to the recovery of the tourism industry[30](index=30&type=chunk) - Revenue from sales to travel agencies decreased by **65.5%**, mainly due to a reduction in the number of electronic guides purchased[31](index=31&type=chunk) - Revenue from sales of customized content decreased by **66.7%**, primarily due to a new round of business adjustments, reducing project-based business for government and enterprise customized solutions, and prioritizing a public cloud strategy[34](index=34&type=chunk) [Cost of Sales](index=14&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by 29.7% to RMB 219.0 million, primarily due to higher platform commissions from increased online electronic guide sales through online travel platforms and increased amortization of intangible assets - Cost of sales increased by **29.7%** year-on-year to **RMB 219.0 million**[35](index=35&type=chunk) - The increase was primarily attributable to higher commissions from online travel platforms and increased amortization of intangible assets[35](index=35&type=chunk) [Gross Profit](index=14&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit decreased by 13.8% to RMB 85.9 million, with the gross profit margin falling from 37.1% to 28.2%, mainly attributed to reduced sales of online electronic guides through travel agencies and increased intangible asset amortization costs - Gross profit decreased by **13.8%** year-on-year to **RMB 85.9 million**[36](index=36&type=chunk) - Gross profit margin decreased from **37.1%** to **28.2%**[36](index=36&type=chunk) - The main reasons were reduced sales through travel agencies and increased amortization costs of intangible assets[36](index=36&type=chunk) [Other Income and Gains, Net](index=15&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%EF%BC%8C%E6%B7%A8%E9%A1%8D) Other income and gains, net, increased by approximately 257.1% to RMB 2.5 million, primarily due to a rise in fair value gains from the embedded derivative component of convertible bonds - Other income and gains, net, increased by **257.1%** year-on-year to **RMB 2.5 million**[37](index=37&type=chunk) - The increase was primarily due to an increase in fair value gains from the embedded derivative component of convertible bonds[37](index=37&type=chunk) [Selling and Distribution Expenses](index=15&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses significantly decreased by 59.5% to RMB 3.2 million, mainly due to reduced offline tourism promotion activities and related employee salaries and benefits - Selling and distribution expenses decreased by **59.5%** year-on-year to **RMB 3.2 million**[38](index=38&type=chunk) - The decrease was primarily due to reduced offline tourism promotion and related employee salaries and benefits expenses[38](index=38&type=chunk) [Administrative Expenses](index=15&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by 9.9% to RMB 10.0 million, primarily driven by the expansion of the consulting personnel team - Administrative expenses increased by **9.9%** year-on-year to **RMB 10.0 million**[39](index=39&type=chunk) - The increase was primarily due to the expansion of the consulting personnel team[39](index=39&type=chunk) [Income Tax Expense](index=15&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased to RMB 13.5 million, primarily due to a reduction in taxable income - Income tax expense decreased year-on-year to **RMB 13.5 million**[40](index=40&type=chunk) - The decrease was primarily due to a reduction in taxable income[40](index=40&type=chunk) [Profit for the Period](index=15&type=section&id=%E6%9C%9F%E5%85%A7%E7%9B%88%E5%88%A9) Profit for the period increased by 7.1% to RMB 56.1 million, but the net profit margin decreased from 19.5% to 18.4%, mainly due to increased intangible asset amortization - Profit for the period increased by **7.1%** year-on-year to **RMB 56.1 million**[41](index=41&type=chunk) - Net profit margin decreased from **19.5%** to **18.4%**, primarily due to increased intangible asset amortization[41](index=41&type=chunk) [Other Financial Information](index=15&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) At the end of the reporting period, trade receivables and prepayments increased, while net current liabilities and the current ratio deteriorated, and cash and cash equivalents decreased; capital expenditures were primarily for intangible asset purchases, with no significant investments, acquisitions, or disposals, and the company maintained 52 full-time employees with performance-based remuneration policies [Trade Receivables](index=15&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Trade receivables increased by approximately RMB 52.0 million to RMB 94.3 million, primarily due to increased revenue and a slower recovery of receivables - Trade receivables increased by approximately **RMB 52.0 million** to **RMB 94.3 million**[42](index=42&type=chunk) - The increase was primarily due to the company's increased revenue and a slower recovery of receivables[42](index=42&type=chunk) [Prepayments, Deposits and Other Receivables](index=16&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Prepayments, deposits, and other receivables increased by approximately RMB 2.2 million to RMB 59.5 million, mainly due to an increase in prepayments to suppliers - Prepayments, deposits, and other receivables increased by approximately **RMB 2.2 million** to **RMB 59.5 million**[43](index=43&type=chunk) - The increase was primarily due to an increase in prepayments to suppliers[43](index=43&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E4%BE%86%E6%BA%90) The company's liquidity primarily stems from net cash generated from operations; as of June 30, 2025, cash and cash equivalents were RMB 169.7 million, net current liabilities were RMB 64.3 million, and the current ratio was approximately 0.8 times, all deteriorating from the end of 2024, mainly due to increased trade payables and intangible asset purchases - Liquidity primarily originated from net cash generated from operations[44](index=44&type=chunk) Liquidity Status | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 169.7 | 219.5 | | Net Current Liabilities | 64.3 | 2.1 | | Current Ratio | 0.8 times | 1.0 times | | Bank Borrowings | 88.3 | 92.2 | | Gearing Ratio | 8.3% | 9.1% | - Net current liabilities increased and the current ratio decreased, primarily due to an increase in trade payables[45](index=45&type=chunk) - Cash and cash equivalents decreased primarily due to an increase in the purchase of intangible assets[45](index=45&type=chunk) [Capital Expenditures](index=16&type=section&id=%E8%B3%87%E6%9C%AC%E6%94%AF%E5%87%BA) Capital expenditures included the purchase of property, plant, and equipment, which increased by approximately RMB 101,000, and the acquisition of intangible assets, which increased by approximately RMB 111.0 million, primarily due to the increased number of online electronic guides developed - Property, plant and equipment increased by approximately **RMB 101,000**, mainly due to additions[46](index=46&type=chunk) - Intangible assets increased by approximately **RMB 111.0 million**, primarily due to the increased number of online electronic guides developed, partially offset by amortization of intangible assets of approximately **RMB 71.2 million**[47](index=47&type=chunk) [Significant Investments, Acquisitions and Disposals](index=17&type=section&id=%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%E4%BA%8B%E9%A0%85) During the reporting period, the company had no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the company had no significant investments, acquisitions, or disposals of any subsidiaries, associates, or joint ventures[48](index=48&type=chunk) [Future Plans for Material Investments and Capital Assets](index=17&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) From the reporting period until the date of this announcement, the company had no plans for material investments and capital assets - From the reporting period until the date of this announcement, the company had no plans for material investments and capital assets[49](index=49&type=chunk) [Employees and Remuneration Policy](index=17&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company employed 52 full-time staff, with remuneration based on performance, experience, capabilities, and market levels, participating in statutory employee benefit schemes, and having no significant labor disputes - As of June 30, 2025, the company had **52** full-time employees[50](index=50&type=chunk) - Employee remuneration is determined based on performance, experience, capabilities, and comparable market levels, with participation in statutory employee benefit schemes[50](index=50&type=chunk)[51](index=51&type=chunk) - The company has adopted a share option scheme and a share award scheme, and as of June 30, 2025, **72,450,675** shares have been granted to six selected employees under the share award scheme[50](index=50&type=chunk) [Contingent Liabilities and Pledge of Assets](index=18&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5%E5%8F%8A%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the company had no significant contingent liabilities apart from borrowings mentioned in note 18 to the interim condensed consolidated financial statements, and held pledged bank deposits of RMB 0.2 million, primarily for tourism-related business with government authorities - As of June 30, 2025, the company had no significant contingent liabilities other than borrowings[52](index=52&type=chunk) - The company had pledged bank deposits of **RMB 0.2 million**, primarily pledged to government authorities for tourism-related business[52](index=52&type=chunk) [Interim Condensed Consolidated Financial Statements](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the unaudited interim condensed consolidated financial statements, including the statement of profit or loss, statement of comprehensive income, and statement of financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) This statement presents the unaudited consolidated profit or loss for the six months ended June 30, 2025, including revenue, cost of sales, gross profit, various expenses, profit before tax, profit for the period, and basic and diluted earnings per share Interim Condensed Consolidated Statement of Profit or Loss Overview | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 304,876 | 268,501 | | Cost of Sales | (218,961) | (168,835) | | Gross Profit | 85,915 | 99,666 | | Profit Before Tax | 69,593 | 82,616 | | Profit for the Period | 56,073 | 52,346 | | Basic and Diluted Earnings Per Share (RMB) | 3.40 cents | 3.20 cents | [Interim Condensed Consolidated Statement of Comprehensive Income](index=20&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the unaudited consolidated comprehensive income for the six months ended June 30, 2025, including profit for the period and other comprehensive expenses, primarily exchange differences arising from the translation of financial statements, leading to the total comprehensive income for the period Interim Condensed Consolidated Statement of Comprehensive Income Overview | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 56,073 | 52,346 | | Exchange differences arising from translation of financial statements | (141) | (133) | | Total Comprehensive Income for the Period | 55,932 | 52,213 | [Interim Condensed Consolidated Statement of Financial Position](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement presents the unaudited consolidated financial position as of June 30, 2025, including non-current assets, current assets, current liabilities, non-current liabilities, and total equity, compared to December 31, 2024 Interim Condensed Consolidated Statement of Financial Position Overview | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,130,140 | 1,021,309 | | Current Assets | 285,916 | 278,564 | | Current Liabilities | 350,248 | 280,688 | | Net Current Liabilities | (64,332) | (2,124) | | Total Assets Less Current Liabilities | 1,065,808 | 1,019,185 | | Non-current Liabilities | 634 | 9,943 | | Net Assets/Total Equity | 1,065,174 | 1,009,242 | [Notes to the Interim Condensed Consolidated Financial Information](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes to the interim condensed consolidated financial statements, covering company information, basis of preparation, accounting policies, segment information, and specific financial line items [Company Information](index=22&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Lvji Technology Holdings Limited was incorporated in the Cayman Islands on November 7, 2018, and listed on the Main Board of the Stock Exchange on January 17, 2020, operating as an investment holding company with subsidiaries primarily engaged in providing online electronic guide services in China - The company was incorporated in the Cayman Islands on **November 7, 2018**, and listed on the Main Board of the Stock Exchange on **January 17, 2020**[56](index=56&type=chunk)[57](index=57&type=chunk) - The company is an investment holding company, and its subsidiaries are primarily engaged in providing online electronic guide services in China[58](index=58&type=chunk) [Basis of Preparation](index=22&type=section&id=2.1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial statements are prepared in RMB under HKAS 34 'Interim Financial Reporting' on a going concern basis, with directors affirming sufficient working capital and no material uncertainties - The interim condensed consolidated financial statements are prepared in accordance with **HKAS 34 "Interim Financial Reporting"** and presented in **RMB**[60](index=60&type=chunk) - The statements are prepared on a going concern basis, with directors believing the company has sufficient working capital and no material uncertainties[60](index=60&type=chunk) [Adoption of Revised HKFRS Accounting Standards](index=23&type=section&id=2.2%20%E6%8E%A1%E7%B4%8D%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E6%9C%83%E8%A8%88%E5%87%86%E5%89%87) The interim condensed consolidated financial statements for the reporting period were prepared using accounting policies consistent with the annual financial statements for the year ended December 31, 2024, with the adoption of HKAS 21 (Amendment) 'Lack of Exchangeability' effective January 1, 2025, having no material impact - **HKAS 21 (Amendment) "Lack of Exchangeability"**, effective January 1, 2025, was adopted[62](index=62&type=chunk) - This amendment did not have a material impact on the Group's interim condensed consolidated financial statements[62](index=62&type=chunk) [Operating Segment Information](index=23&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group primarily operates as an online electronic guide provider in Mainland China, and due to the concentration of revenue and operating profit within this region, no geographical segment information is presented, with no single customer contributing 10% or more of total revenue during the period - The Group primarily operates as an online electronic guide provider in Mainland China, and no geographical segment information is presented[63](index=63&type=chunk)[64](index=64&type=chunk) - During the reporting period, no single customer's revenue accounted for **10%** or more of the Group's total revenue[65](index=65&type=chunk) [Revenue](index=24&type=section&id=4.%20%E6%94%B6%E7%9B%8A) This section details the Group's performance obligations and revenue analysis, primarily from online electronic guide sales through online travel platforms, with performance obligations fulfilled upon end-user activation, while sales to travel agencies and customized content sales are recognized upon transfer and customer acceptance, respectively - Performance obligations for sales of online electronic guides through online travel platforms and the Lvji APP are completed upon end-user activation[66](index=66&type=chunk) - Performance obligations for sales of online electronic guides to travel agencies are completed upon transfer of the guides to travel agencies[67](index=67&type=chunk) - Performance obligations for sales of customized content are completed upon inspection and acceptance of the content by the customer[68](index=68&type=chunk) Revenue Analysis | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of online electronic guides through online travel platforms | 293,304 | 235,038 | | Sales of online electronic guides to travel agencies | 11,371 | 33,019 | | Sales of online electronic guides through Lvji APP | 74 | 123 | | Sales of customized content | 127 | 321 | | **Total** | **304,876** | **268,501** | [Other Income and Gains, Net](index=25&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%EF%BC%8C%E6%B7%A8%E9%A1%8D) Other income and gains, net, increased by approximately 257.1% to RMB 2.5 million, primarily due to a rise in fair value gains from the embedded derivative component of convertible bonds Other Income and Gains, Net | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 246 | 229 | | Consulting fees | – | 643 | | Government grants | – | 44 | | Fair value gain on embedded derivative component of convertible bonds | 2,242 | – | | Exchange loss, net | (80) | (311) | | Others | 57 | 63 | | **Total** | **2,465** | **668** | - The increase was primarily due to an increase in fair value gains from the embedded derivative component of convertible bonds[37](index=37&type=chunk) [Finance Costs](index=26&type=section&id=6.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs significantly increased from approximately RMB 0.2 million to RMB 3.1 million, mainly due to a substantial rise in financing costs for convertible bonds and bank borrowings Finance Costs Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance costs on lease liabilities | 36 | 114 | | Finance costs on convertible bonds | 1,384 | – | | Finance costs on bank borrowings | 1,723 | 107 | | **Total** | **3,143** | **221** | [Profit Before Tax](index=26&type=section&id=7.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) This section details the various expenses and income deducted from or included in profit before tax, such as commissions, depreciation, amortization, research and development costs, exchange losses, expected credit loss provisions, and salaries and benefits Profit Before Tax Deductions/(Additions) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Commissions | 146,652 | 117,519 | | Amortization of intangible assets | 71,185 | 50,734 | | Research and development costs | 509 | 2,119 | | Provision for expected credit losses on trade receivables | 1,861 | 210 | | Wages, salaries and bonuses | 3,450 | 4,029 | [Income Tax Expense](index=27&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the period decreased to approximately RMB 13.5 million from RMB 30.3 million in the prior period, primarily due to a reduction in taxable income, with Lvji Technology Group enjoying a preferential 15% corporate income tax rate as a 'High-New Technology Enterprise' Income Tax Expense | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | 13,880 | 31,871 | | Over-provision in prior year | (360) | (1,601) | | **Total Income Tax Expense** | **13,520** | **30,270** | - The decrease in income tax expense was primarily due to a reduction in taxable income[40](index=40&type=chunk) - Lvji Technology Group, as a "High-New Technology Enterprise," is eligible for a preferential income tax rate of **15%** under qualifying conditions, valid until December 2026[75](index=75&type=chunk) [Dividends](index=28&type=section&id=9.%20%E8%82%A1%E6%81%AF) The company and its subsidiaries did not declare or pay any dividends during the reporting period or the corresponding prior period - The company and its subsidiaries did not declare or pay any dividends during the reporting period or the corresponding prior period[76](index=76&type=chunk) [Earnings Per Share Attributable to Owners of the Company](index=28&type=section&id=10.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E5%8D%A0%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share are calculated based on profit attributable to owners of the company and the weighted average number of ordinary shares outstanding, with diluted earnings per share being identical to basic earnings per share due to the absence of dilutive potential ordinary shares in both periods Earnings Per Share Calculation | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit attributable to owners of the company (RMB thousand) | 56,073 | 52,346 | | Weighted average number of ordinary shares outstanding | 1,647,201,000 | 1,635,953,000 | - Diluted earnings per share are the same as basic earnings per share because there were no dilutive potential ordinary shares in either period[80](index=80&type=chunk) [Property, Plant and Equipment](index=28&type=section&id=11.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) During the reporting period, the Group's cost of acquiring property, plant, and equipment was RMB 121,000, representing an increase of approximately 594.1% compared to December 31, 2024 - During the reporting period, the Group's cost of acquiring property, plant and equipment was **RMB 121,000**[81](index=81&type=chunk) - This represents an increase of approximately **RMB 101,000** or **594.1%** from December 31, 2024, to June 30, 2025[46](index=46&type=chunk) [Intangible Assets](index=28&type=section&id=12.%20%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) During the reporting period, the Group's cost of acquiring intangible assets was RMB 182,154,000, an increase compared to RMB 164,206,000 in the corresponding prior period - During the reporting period, the Group's cost of acquiring intangible assets was **RMB 182,154,000**[82](index=82&type=chunk) - This represents an increase compared to **RMB 164,206,000** in the corresponding prior period[82](index=82&type=chunk) [Trade Receivables](index=29&type=section&id=13.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables significantly increased to RMB 94,321 thousand from RMB 42,341 thousand as of December 31, 2024, primarily concentrated in the 0 to 3 months aging category Trade Receivables Aging Analysis | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 3 months | 94,205 | 31,582 | | 3 to 6 months | 116 | 9,719 | | 6 months to 1 year | – | 1,040 | | **Total** | **94,321** | **42,341** | - The increase in trade receivables was primarily due to the company's increased revenue and a slower recovery of receivables[42](index=42&type=chunk) [Prepayments, Deposits and Other Receivables](index=29&type=section&id=14.%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total prepayments, deposits, and other receivables slightly increased to RMB 59,457 thousand from RMB 57,303 thousand as of December 31, 2024, mainly due to an increase in prepayments to suppliers Prepayments, Deposits and Other Receivables Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments to suppliers | 5,449 | 5,994 | | Prepaid taxes and other recoverable taxes | 11,818 | 10,858 | | Prepayments (non-current) | 44,796 | 44,150 | | Other receivables | 1,253 | 793 | | Less: Provision for expected credit losses | (4,252) | (5,290) | | **Total** | **59,457** | **57,303** | - The increase was primarily due to an increase in prepayments to suppliers[43](index=43&type=chunk) [Trade Payables](index=30&type=section&id=15.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables significantly increased to RMB 50,864 thousand from RMB 14,339 thousand as of December 31, 2024, primarily concentrated in the 3 to 12 months aging category Trade Payables Aging Analysis | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 3 months | 20,333 | 13,938 | | 3 to 12 months | 30,196 | 6 | | 1 to 2 years | 62 | 35 | | Over 2 years | 273 | 360 | | **Total** | **50,864** | **14,339** | - Trade payables are interest-free and generally settled within **30 days**[86](index=86&type=chunk) [Other Payables and Accrued Expenses](index=31&type=section&id=16.%20%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) As of June 30, 2025, total other payables and accrued expenses increased to RMB 61,147 thousand from RMB 47,760 thousand as of December 31, 2024, primarily due to an increase in other tax payables Other Payables and Accrued Expenses Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other payables | 8,946 | 5,194 | | Accrued salaries and benefits | 1,407 | 1,500 | | Other tax payables | 50,794 | 41,066 | | **Total** | **61,147** | **47,760** | - Payables are unsecured, interest-free, and repayable on demand[87](index=87&type=chunk) [Contract Liabilities](index=31&type=section&id=17.%20%E5%90%88%E7%B4%84%E8%B2%A0%E5%82%B5) As of June 30, 2025, contract liabilities increased to RMB 1,737 thousand from RMB 796 thousand as of December 31, 2024, primarily from deposits received for customized content contracts, with all deposits expected to be settled within one year - As of June 30, 2025, contract liabilities were **RMB 1,737 thousand**, an increase from **RMB 796 thousand** as of December 31, 2024[88](index=88&type=chunk) - Contract liabilities primarily arise from deposits received for customized content contracts, typically **50%** of the contract amount upon signing[88](index=88&type=chunk) - Unsettled contract liabilities of **RMB 796,000** at the beginning of the period were recognized as revenue during the reporting period[89](index=89&type=chunk) [Borrowings](index=32&type=section&id=18.%20%E5%80%9F%E6%AC%BE) As of June 30, 2025, total bank borrowings slightly decreased to RMB 88,284 thousand from RMB 92,172 thousand as of December 31, 2024, comprising both unsecured and secured portions, guaranteed by Mr. Zang, an associated company, and the company's subsidiaries Borrowings Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Repayable within one year | 52,076 | 53,076 | | Repayable in the second year | 5,776 | 5,776 | | Repayable in the third to fifth year | 30,432 | 33,320 | | **Total Carrying Amount** | **88,284** | **92,172** | Borrowing Types | Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unsecured bank loans | 44,300 | 92,172 | | Secured bank loans | 43,984 | – | | **Total** | **88,284** | **92,172** | - Bank borrowings are guaranteed by Mr. Zang, an associated company, and the company's subsidiaries[91](index=91&type=chunk) [Convertible Bonds](index=32&type=section&id=19.%20%E5%8F%AF%E6%8F%9B%E8%82%A1%E5%82%B5%E5%88%B8) Convertible bonds issued in September and November 2024 consist of a debt component, initially measured at fair value less transaction costs and subsequently at amortized cost, and an embedded derivative component (conversion option), initially and subsequently measured at fair value with changes recognized in profit or loss [Debt Component](index=33&type=section&id=%E5%82%B5%E5%8B%99%E9%83%A8%E5%88%86) The debt component of convertible bonds was initially measured at fair value less transaction costs, amounting to RMB 8,060,000, and subsequently measured at amortized cost using the effective interest method, with a carrying amount of RMB 7,345 thousand as of June 30, 2025 - The debt component was initially measured at fair value less transaction costs, amounting to **RMB 8,060,000**[95](index=95&type=chunk) - Subsequently measured at amortized cost using the effective interest method, with an effective interest rate ranging from **11.8% to 18.4%** per annum[95](index=95&type=chunk)[96](index=96&type=chunk) - As of June 30, 2025, the carrying amount of the debt component was **RMB 7,345 thousand**[96](index=96&type=chunk) [Embedded Derivative Component](index=34&type=section&id=%E5%B5%8C%E5%85%A5%E5%BC%8F%E8%A1%8D%E7%94%9F%E9%83%A8%E5%88%86) The embedded derivative component (conversion option) of convertible bonds was initially measured at fair value, amounting to RMB 2,912,000, and subsequently measured at fair value with changes recognized in profit or loss, with a carrying amount of RMB 424 thousand as of June 30, 2025 - The embedded derivative component was initially measured at fair value, amounting to **RMB 2,912,000**[97](index=97&type=chunk) - Subsequently measured at fair value with changes in fair value recognized in profit or loss[97](index=97&type=chunk) - As of June 30, 2025, the carrying amount of the embedded derivative component was **RMB 424 thousand**[98](index=98&type=chunk) [Share Capital](index=34&type=section&id=20.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized share capital comprised 10,000,000,000 ordinary shares with a par value of USD 0.01 each, with 1,647,200,675 shares issued and fully paid, amounting to RMB 113,675 thousand Share Capital Composition | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of authorized ordinary shares | 10,000,000,000 | 10,000,000,000 | | Number of issued and fully paid shares | 1,647,200,675 | 1,647,200,675 | | Issued and fully paid share capital (RMB thousand) | 113,675 | 113,675 | - On February 29, 2024, **11** subscribers subscribed for **75,100,000** shares, of which **35,100,000** shares were fully paid, with net proceeds of approximately **HKD 15,795,000**[99](index=99&type=chunk) [Commitments and Contingent Liabilities](index=35&type=section&id=21.%20%E6%89%BF%E6%93%94%E5%8F%8A22.%20%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of the end of the reporting period, the Group had no material commitments or significant contingent liabilities - As of the end of the reporting period, the Group had no material commitments[100](index=100&type=chunk) - As of the end of the reporting period, the Group had no significant contingent liabilities[101](index=101&type=chunk) [Events After the Reporting Period](index=35&type=section&id=23.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) On August 20, 2025, the company completed a rights issue of 843,600,337 new shares, raising net proceeds of approximately HKD 141.6 million, with the fully paid rights shares commencing trading on the Stock Exchange on August 21, 2025 - On **August 20, 2025**, the company completed a rights issue of **843,600,337** new shares[102](index=102&type=chunk) - The net proceeds from the rights issue were approximately **HKD 141.6 million**[102](index=102&type=chunk) - The fully paid rights shares commenced trading on the Stock Exchange on **August 21, 2025**[102](index=102&type=chunk) [Approval of Financial Statements](index=35&type=section&id=24.%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E6%89%B9%E5%87%86) The financial statements were approved and authorized for issue by the Board of Directors on August 27, 2025 - The financial statements were approved and authorized for issue by the Board of Directors on **August 27, 2025**[103](index=103&type=chunk) [Other Information](index=36&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers the utilization of proceeds from global offering and placing, corporate governance and compliance, and other relevant disclosures [Use of Proceeds from Global Offering and Placing](index=36&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E5%8F%8A%E9%85%8D%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The company utilized approximately HKD 579.2 million from the global offering and HKD 27.04 million from the placing in accordance with the purposes stated in the prospectus or as subsequently revised - The net proceeds from the global offering were approximately **HKD 580.0 million**, and from the placing, approximately **HKD 27.04 million**[104](index=104&type=chunk) - Approximately **HKD 579.2 million** from the global offering and **HKD 27.04 million** from the placing have been utilized[104](index=104&type=chunk) [Corporate Governance and Compliance](index=36&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%90%88%E8%A6%8F) During the reporting period, the company complied with all applicable code provisions of the Corporate Governance Code, adopted the Model Code for directors' securities transactions with no non-compliance found, and its audit committee reviewed the unaudited interim condensed consolidated financial results [Compliance with Corporate Governance Code](index=36&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company adopted and applied the principles and code provisions of the Corporate Governance Code, complying with all applicable provisions during the reporting period - The company has adopted and applied the principles and code provisions of the Corporate Governance Code, complying with all applicable code provisions during the reporting period[105](index=105&type=chunk) [Compliance with Model Code](index=36&type=section&id=%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Model Code for directors' securities transactions, with all directors confirming compliance, and no instances of non-compliance by employees were identified - The company has adopted the Model Code as a code of conduct for directors' securities transactions, and directors have confirmed compliance[107](index=107&type=chunk) - The company found no instances of non-compliance with the Model Code by employees[107](index=107&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=37&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and 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[108](index=108&type=chunk) - As of June 30, 2025, the company held no treasury shares[109](index=109&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, composed of three independent non-executive directors with terms of reference compliant with the Listing Rules, reviewed the Group's unaudited interim condensed consolidated financial results for the reporting period - The Audit Committee comprises three independent non-executive directors, and its terms of reference comply with the Listing Rules[110](index=110&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial results for the reporting period[110](index=110&type=chunk) [Interim Dividend](index=37&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare an interim dividend for the reporting period to shareholders - The Board of Directors has resolved not to declare an interim dividend for the reporting period to shareholders[112](index=112&type=chunk) [Events After June 30, 2025](index=37&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E5%BE%8C%E4%BA%8B%E9%A0%85) On August 20, 2025, the company completed a rights issue of 843,600,337 new shares, raising net proceeds of approximately HKD 141.6 million, with no other significant matters requiring disclosure known to the directors - On **August 20, 2025**, the company completed a rights issue of **843,600,337** new shares, with net proceeds of approximately **HKD 141.6 million**[111](index=111&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=38&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement is published on the Stock Exchange and the company's websites, and the interim report, containing all information required by Appendix D2 of the Listing Rules, will be circulated and dispatched to shareholders and published on both websites in due course - This announcement is published on the Stock Exchange website and the company's website[113](index=113&type=chunk) - The interim report will be circulated and dispatched to shareholders and published on the Stock Exchange and the company's websites in due course[113](index=113&type=chunk) [Acknowledgement](index=38&type=section&id=%E8%87%B4%E8%AC%9D) The Board of Directors extends its sincere gratitude to shareholders, the management team, employees, business partners, and customers for their support and contributions to the Group - The Board of Directors extends its sincere gratitude to shareholders, the management team, employees, business partners, and customers for their support and contributions[114](index=114&type=chunk) [Definitions](index=38&type=section&id=%E9%87%8B%E7%BE%A9) This section provides a glossary of key terms and definitions used throughout the report