香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 CASH FINANCIAL SERVICES GROUP LIMITED 時富金融服務集團有限公司* （於百慕達註冊成立之有限公司） （股份編號：510） 中期業績 截至二零二五年六月三十日止六個月 簡明綜合損益及其他全面收益表 CASH Financial Services Group Limited（時富金融服務集團有限公司）（「本公司」或「時富金融」）及其附屬公 司（「本集團」）截至二零二五年六月三十日止六個月之未經審核綜合業績，連同去年同期之比較數字如下： | | | 未經審核 | | | --- | --- | --- | --- | | | | 截至六月三十日止六個月 | | | | | 二零二五年 | 二零二四年 | | | 附註 | 千港元 | 千港元 | | 收益 | (3) | | | | 費用及佣金收入 | | 16,359 | 9,394 | | 利息收入 | | ...

[Company Information and Interim Performance Overview](index=1&type=section&id=Company%20Information%20and%20Interim%20Performance%20Overview) This section provides an overview of the company's basic information and a summary of its interim financial results for the six months ended June 30, 2025 [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) This report details the interim results of CELESTIAL ASIA SECURITIES HOLDINGS LIMITED, incorporated in Bermuda with stock code 1049, for the six months ended June 30, 2025 - Company Name: **CELESTIAL ASIA SECURITIES HOLDINGS LIMITED**[2](index=2&type=chunk) - Reporting Period: Six months ended **June 30, 2025**[2](index=2&type=chunk) - Place of Incorporation: **Bermuda**[2](index=2&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group recorded revenue of HKD 351,022 thousand, a 23.5% year-on-year decrease, with loss for the period expanding to HKD 48,827 thousand, and loss attributable to owners of the Company at HKD 36,666 thousand, resulting in basic and diluted loss per share of HKD 45.4 cents Key Financial Performance Indicators (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 351,022 | 458,894 | -23.5% | | Cost of inventories | (188,570) | (247,729) | -23.9% | | Other income | 8,142 | 10,610 | -23.3% | | Other gains and losses | 6,288 | 8,182 | -23.1% | | Salaries, allowances and related benefits | (70,901) | (90,351) | -21.5% | | Other operating, administrative and selling expenses | (100,676) | (107,194) | -6.1% | | Depreciation of property and equipment | (5,327) | (7,082) | -24.8% | | Depreciation of right-of-use assets | (39,300) | (46,363) | -15.2% | | Finance costs | (9,505) | (12,218) | -22.2% | | Loss before tax | (48,827) | (33,251) | 46.8% | | Loss for the period | (48,827) | (33,251) | 46.8% | | Loss attributable to owners of the Company | (36,666) | (27,104) | 35.3% | | Loss attributable to non-controlling interests | (12,161) | (6,147) | 97.8% | | Basic and diluted loss per share (HK cents) | (45.4) | (33.6) | 35.1% | - Total comprehensive expense increased from **HKD 33,319 thousand** in 2024 to **HKD 48,719 thousand** in 2025, primarily due to the expanded loss[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HKD 1,104,719 thousand, a decrease from December 31, 2024, with non-current assets slightly down and current assets up, while total equity significantly decreased to HKD 47,411 thousand Consolidated Financial Position (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 195,495 | 204,138 | -4.3% | | Current assets | 909,224 | 827,539 | 9.9% | | **Total assets** | **1,104,719** | **1,031,677** | **7.1%** | | **Liabilities** | | | | | Current liabilities | 901,247 | 813,786 | 10.7% | | Non-current liabilities | 156,061 | 121,761 | 28.2% | | **Total liabilities** | **1,057,308** | **935,547** | **13.0%** | | **Equity** | | | | | Equity attributable to owners of the Company | 16,478 | 53,036 | -68.9% | | Non-controlling interests | 30,933 | 43,094 | -28.2% | | **Total equity** | **47,411** | **96,130** | **-50.7%** | - Net current liabilities decreased from **HKD 13,753 thousand** as of December 31, 2024, to **HKD 7,977 thousand** as of June 30, 2025[6](index=6&type=chunk) - Non-current liabilities significantly increased, primarily due to new convertible bonds of **HKD 20,000 thousand**[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the Company significantly decreased from HKD 53,036 thousand at the beginning of the period to HKD 16,478 thousand, primarily due to a loss for the period of HKD 36,666 thousand Consolidated Equity Changes (HKD thousands) | Indicator | As at January 1, 2025 (HKD thousands) | Loss for the period (HKD thousands) | Exchange differences (HKD thousands) | As at June 30, 2025 (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company | 53,036 | (36,666) | 108 | 16,478 | | Non-controlling interests | 47,499 | (12,161) | - | 35,338 | | **Total equity** | **96,130** | **(48,827)** | **108** | **47,411** | - In the corresponding period of 2024, equity attributable to owners of the Company decreased from **HKD 115,965 thousand** at the beginning of the period to **HKD 88,793 thousand**, with a loss for the period of **HKD 27,104 thousand**[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group recorded a net cash outflow from operating activities of HKD 70,103 thousand, compared to a net inflow of HKD 82,044 thousand in the prior year, resulting in a net decrease in cash and cash equivalents of HKD 21,952 thousand Consolidated Cash Flow Summary (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net cash (used in) from operating activities | (70,103) | 82,044 | (152,147) | | Net cash from (used in) investing activities | 6,118 | (78,275) | 84,393 | | Net cash from (used in) financing activities | 42,033 | (69,707) | 111,740 | | Net decrease in cash and cash equivalents | (21,952) | (65,938) | 43,986 | | Cash and cash equivalents at beginning of period | 136,038 | 233,362 | (97,324) | | Cash and cash equivalents at end of period | 114,086 | 167,424 | (53,338) | - Cash flow from investing activities turned from a net outflow in the prior year to a net inflow, primarily reflecting adjustments in investment activities[9](index=9&type=chunk) - Cash flow from financing activities turned from a net outflow in the prior year to a net inflow, indicating the company undertook fundraising activities during the period[9](index=9&type=chunk) [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the basis of preparation, accounting policies, and specific breakdowns of revenue, segments, tax, loss per share, receivables, payables, share capital, related party transactions, and capital management [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, using the historical cost convention, and the first-time application of amendments to HKFRS had no significant impact on financial position - Basis of preparation: Hong Kong Accounting Standard 34 and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - Accounting policies: Prepared on a **historical cost basis**, with certain financial instruments measured at fair value[11](index=11&type=chunk) - New standards applied: First-time application of amendments to HKAS 21 "Lack of Exchangeability" had **no significant impact** on financial position or performance[12](index=12&type=chunk) [Revenue Breakdown](index=8&type=section&id=Revenue%20Breakdown) The Group's revenue primarily comes from the retail segment, with sales of furniture and household goods being the largest contributor, though revenue in this category significantly decreased year-on-year, while financial services revenue increased, with Hong Kong remaining the primary market Revenue by Type of Goods or Services (HKD thousands) | Type of Goods or Services | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Sales of furniture and household goods | 290,177 | 386,524 | -24.9% | | Sales of electrical appliances | 24,382 | 34,726 | -29.8% | | Sales of custom-made furniture | 16,622 | 20,533 | -19.0% | | Total retail segment revenue | 331,181 | 441,783 | -25.0% | | Management fees from asset management services | 1,959 | 1,643 | 19.2% | | Other financial services | 17,882 | 15,468 | 15.6% | | **Total revenue** | **351,022** | **458,894** | **-23.5%** | | **Revenue Recognition Timing** | | | | | At a point in time | 309,540 | 406,266 | -23.8% | | Over time | 41,482 | 52,628 | -21.2% | | **Geographical Markets** | | | | | Hong Kong | 349,638 | 457,599 | -23.5% | | China | 1,384 | 1,295 | 6.9% | - Retail segment revenue decreased by **25.0%** year-on-year, which is the primary reason for the total revenue decline[13](index=13&type=chunk) - Management fees from asset management services and other financial services revenue both achieved growth[13](index=13&type=chunk) [Business and Geographical Segments](index=8&type=section&id=Business%20and%20Geographical%20Segments) The Group's operations are divided into retail, investment management, and other financial services segments, with all segments recording losses in the first half of 2025, and Hong Kong remaining the primary geographical market - Business segments include: **Retail** (sales of furniture, household goods, electrical appliances), **Investment Management** (asset management services), and **Other Financial Services** (provided by Celestial Finance)[15](index=15&type=chunk) Segment Revenue and Results (HKD thousands) | Segment | June 30, 2025 Revenue (HKD thousands) | June 30, 2025 Results (HKD thousands) | June 30, 2024 Revenue (HKD thousands) | June 30, 2024 Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Retail | 331,181 | (20,641) | 441,783 | (7,356) | | Investment Management | 1,959 | (11,175) | 1,643 | 3,840 | | Other Financial Services | 17,882 | (8,598) | 15,468 | (22,760) | | **Consolidated** | **351,022** | **(40,414)** | **458,894** | **(26,276)** | - Retail segment results expanded from a loss of **HKD 7,356 thousand** in 2024 to a loss of **HKD 20,641 thousand** in 2025[16](index=16&type=chunk) - Investment management segment turned from a profit of **HKD 3,840 thousand** in 2024 to a loss of **HKD 11,175 thousand** in 2025[16](index=16&type=chunk) - Other financial services segment loss significantly narrowed from **HKD 22,760 thousand** in 2024 to **HKD 8,598 thousand** in 2025[16](index=16&type=chunk) - The Group's principal operations are located in Hong Kong, with revenue from outside Hong Kong being immaterial[17](index=17&type=chunk) [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) The Group incurred no income tax expense during the reporting period, with Hong Kong profits tax calculated under a two-tiered tax rate system and PRC subsidiaries taxed at 25% Income Tax Expense (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Income tax expense | – | – | - Hong Kong profits tax is calculated at **8.25%** on the first **HKD 2,000,000** of assessable profits and **16.5%** on the remainder[19](index=19&type=chunk) - PRC subsidiaries are taxed at **25%**[19](index=19&type=chunk) [Loss Per Share](index=10&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company was HKD 45.4 cents, an increase from HKD 33.6 cents in the prior year Loss Per Share Calculation (HKD thousands, except per share data) | Indicator | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share | (36,666) | (27,104) | | Weighted average number of ordinary shares (thousands) | 80,720 | 80,720 | | Basic and diluted loss per share (HK cents) | (45.4) | (33.6) | - The increase in loss per share is consistent with the expanded loss attributable to owners of the Company[20](index=20&type=chunk) [Trade and Other Receivables and Loans Receivable](index=11&type=section&id=Trade%20and%20Other%20Receivables%20and%20Loans%20Receivable) As of June 30, 2025, total trade and other receivables increased to HKD 145,117 thousand, primarily driven by receivables from securities trading and margin financing businesses, while loans receivable decreased and were subject to impairment assessment Trade and Other Receivables (HKD thousands) | Trade and Other Receivables Category | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Retail business | 1,043 | 1,013 | 3.0% | | Securities trading business | 57,288 | 42,434 | 35.0% | | Margin financing business | 122,011 | 114,506 | 6.6% | | Futures and options trading business | 20,018 | 15,469 | 29.4% | | Less: Impairment allowance | (55,243) | (55,243) | 0.0% | | **Total trade and other receivables** | **145,117** | **118,179** | **22.8%** | Loans Receivable (HKD thousands) | Loans Receivable Category | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | HKD revolving loans | 6,423 | 12,139 | -47.1% | | USD revolving loans | 54 | 54 | 0.0% | | Less: Impairment allowance | (1,307) | (1,307) | 0.0% | | **Total loans receivable** | **5,170** | **10,886** | **-52.5%** | - Credit terms for retail business trade receivables average **30 to 60 days**[21](index=21&type=chunk) - Loans receivable have been individually assessed for impairment and bear interest at floating rates[23](index=23&type=chunk) [Trade and Other Payables](index=13&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to HKD 522,830 thousand, primarily driven by an increase in payables from securities trading business, with retail business trade payables having credit terms of 15 to 90 days Trade and Other Payables (HKD thousands) | Trade and Other Payables Category | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Retail business | 101,025 | 102,775 | -1.7% | | Securities trading business | 394,787 | 323,499 | 22.0% | | Futures and options trading business | 27,018 | 28,083 | -3.8% | | **Total trade and other payables** | **522,830** | **454,357** | **15.1%** | - Settlement terms for trade payables from securities trading business are **two days** after the transaction date, and **one day** for futures and options business[25](index=25&type=chunk) - All trade and other payables, except for amounts due to clients from securities trading business, are non-interest bearing[27](index=27&type=chunk) [Share Capital](index=14&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was HKD 30,000 thousand, and issued and fully paid share capital was HKD 16,144 thousand, with 80,720 thousand shares, remaining unchanged from the beginning of the period Share Capital Structure | Category | Par Value (HKD) | Number of Shares (thousands) | Amount (HKD thousands) | | :--- | :--- | :--- | :--- | | Authorized ordinary shares | 0.20 | 150,000 | 30,000 | | Issued and fully paid ordinary shares | 0.20 | 80,720 | 16,144 | - The share capital structure remained unchanged during the reporting period[28](index=28&type=chunk) [Related Party Transactions](index=14&type=section&id=Related%20Party%20Transactions) The Group engaged in transactions with related parties during the period, including commission income, interest income, and interest expenses, with commission and interest income from directors increasing, while interest expenses paid to a related party decreased Related Party Transactions (HKD thousands) | Transaction Type | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Commission income and interest income from directors | 55 | 31 | 77.4% | | Interest expense paid to a related party | 3,186 | 4,220 | -24.5% | - Commission and interest income from **Dr. Kwan Pak Hoo Bankee** and **Mr. Cheung Tsz Yui** increased[29](index=29&type=chunk) - Mr. Law Hin Yeung resigned as a director of Celestial Asia Finance Holdings Limited during the period ended June 30, 2024[29](index=29&type=chunk) [Capital Risk Management and Dividends](index=15&type=section&id=Capital%20Risk%20Management%20and%20Dividends) The Group aims to optimize its capital structure to ensure continuous operation and maximize shareholder returns, with regulated entities complying with financial resources requirements, and the Board not recommending any dividend for the six months ended June 30, 2025 - Capital management strategy: Optimize debt and equity balance to ensure continuous operation and maximize shareholder returns[30](index=30&type=chunk) - Regulatory compliance: The Group's regulated entities complied with the minimum paid-up capital and liquid capital requirements under the Securities and Futures (Financial Resources) Rules of the SFC in Hong Kong[30](index=30&type=chunk) - Dividend policy: The Board does not recommend any dividend for the six months ended June 30, 2025 (also none for the corresponding period in 2024)[31](index=31&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed review of the Group's financial performance, cash flow, financial resources, material transactions, fundraising activities, and a summary of key financial and operational metrics [Financial Review](index=15&type=section&id=Financial%20Review) In the first half of 2025, the Group's revenue decreased by 23.5% year-on-year to HKD 351 million, and loss for the period expanded to HKD 48.8 million, with retail business loss significantly increasing, investment management business turning to loss, and other financial services business loss narrowing - Overall revenue: Recorded **HKD 351 million** in H1 2025, a **23.5% decrease** from HKD 458.9 million in H1 2024[32](index=32&type=chunk) - Loss for the period: Net loss of **HKD 48.8 million** in H1 2025, a **46.5% increase** from HKD 33.3 million in H1 2024[32](index=32&type=chunk) [Overall Financial Performance](index=15&type=section&id=Overall%20Financial%20Performance) In the first half of 2025, global financial markets were volatile, with the Group's revenue and net loss deteriorating due to shifts in US policies - Global financial markets experienced volatility due to shifts in US policies, including trade tariffs, fiscal expansion, and geopolitical factors[32](index=32&type=chunk) [Retail Business (Pricerite Group) Financial Performance](index=15&type=section&id=Retail%20Business%20(Pricerite%20Group)%20Financial%20Performance) Pricerite Group's revenue decreased by 25% year-on-year to HKD 331 million, and segment loss increased from HKD 7 million to HKD 21 million, mainly due to a high base effect from last year's policy-stimulated sales and weak consumer sentiment in H1 2025 - Retail sales value: Hong Kong's retail sales value declined by **3.3%** year-on-year, with sales volume decreasing by **4.7%**, and the furniture sector's sales value decreasing by **18.9%**[33](index=33&type=chunk) - Revenue: **HKD 331 million** (H1 2024: HKD 442 million), a **25% decrease**[34](index=34&type=chunk) - Segment loss: Increased from **HKD 7 million** to **HKD 21 million**[34](index=34&type=chunk) - Main reasons: High base effect from last year's government policy-stimulated sales and weak consumer sentiment in H1 2025[34](index=34&type=chunk) [Investment Management Business (Celestial Quant Group) Financial Performance](index=16&type=section&id=Investment%20Management%20Business%20(Celestial%20Quant%20Group)%20Financial%20Performance) Investment management business revenue increased to HKD 2 million, but segment results turned from a profit of HKD 3.8 million in the prior year to a loss of HKD 11.2 million, mainly due to increased US tariffs and financial market volatility - Revenue: **HKD 2 million** (H1 2024: HKD 1.6 million)[35](index=35&type=chunk) - Segment results: Turned from a profit of **HKD 3.8 million** to a loss of **HKD 11.2 million**[35](index=35&type=chunk) - Main reasons: Increased US tariffs adding uncertainty and volatility to financial markets, leading to ineffective asset management strategies[35](index=35&type=chunk) [Other Financial Services Business (Celestial Finance) Financial Performance](index=16&type=section&id=Other%20Financial%20Services%20Business%20(Celestial%20Finance)%20Financial%20Performance) Other financial services business revenue increased to HKD 17.9 million, and segment loss significantly narrowed to HKD 8.6 million, indicating improved business performance - Revenue: **HKD 17.9 million** (H1 2024: HKD 15.5 million)[36](index=36&type=chunk) - Segment loss: **HKD 8.6 million** (H1 2024: HKD 22.8 million), a significant narrowing of loss[36](index=36&type=chunk) [Cash Flow and Financial Resources](index=16&type=section&id=Cash%20Flow%20and%20Financial%20Resources) As of June 30, 2025, equity attributable to owners of the Company significantly decreased by 50.7% to HKD 47.4 million, mainly due to loss for the period, while cash and bank balances increased to HKD 513.9 million, and total outstanding borrowings increased to HKD 277.7 million, leading to a significantly higher gearing ratio of 585.7% - Equity attributable to owners of the Company: **HKD 47.4 million** (end of 2024: HKD 96.1 million), a **50.7% decrease**[37](index=37&type=chunk) - Cash and bank balances: **HKD 513.9 million** (end of 2024: HKD 477.5 million), a **7.6% increase**[37](index=37&type=chunk) - Total outstanding borrowings: **HKD 277.7 million** (end of 2024: HKD 259.2 million), a **7.1% increase**[38](index=38&type=chunk) - Current ratio: **1.0 times** (consistent with end of 2024)[38](index=38&type=chunk) - Gearing ratio: **585.7%** (end of 2024: 269.7%), a significant increase primarily due to loss for the period[38](index=38&type=chunk) - Foreign exchange risk: No significant unhedged foreign exchange risk or interest rate mismatch at period-end[39](index=39&type=chunk) [Material Transactions and Fundraising Activities](index=17&type=section&id=Material%20Transactions%20and%20Fundraising%20Activities) The Group did not undertake any material acquisitions or disposals during the reporting period, raised HKD 40 million through convertible bonds for general working capital, and had no significant capital commitments, litigation, or contingent liabilities at period-end, with material investments in financial assets at fair value through profit or loss recording a net gain of HKD 6.3 million - Material acquisitions and disposals: No material acquisitions or disposals during the period[40](index=40&type=chunk) - Convertible bond issuance: Issued convertible bonds with a total principal amount of **HKD 40 million**, with **HKD 20 million** completed on June 19, 2025, and another **HKD 20 million** completed on August 8, 2025[41](index=41&type=chunk) - Use of proceeds: Net proceeds are intended for general working capital, including staff salaries, utilities, and other operating expenses[41](index=41&type=chunk)[43](index=43&type=chunk) - Capital commitments: No significant outstanding capital commitments at period-end[44](index=44&type=chunk) - Litigation and contingent liabilities: No significant outstanding litigation or contingent liabilities at period-end[45](index=45&type=chunk) - Material investments: Financial assets at fair value through profit or loss had a market value of approximately **HKD 64 million**, recording a net gain of **HKD 6.3 million**[46](index=46&type=chunk) [Financial and Operational Summary](index=18&type=section&id=Financial%20and%20Operational%20Summary) The Group's total revenue decreased by 23.5%, with retail business down 25%, while investment management and other financial services revenue increased, leading to a 35.4% expansion in loss attributable to owners of the Company and a loss per share of HKD 45.4 cents, alongside negative retail same-store growth and a turn from gain to loss in investment management's financial assets Revenue by Segment (HKD thousands) | Revenue Category | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Retail | 331,181 | 441,783 | (25.0%) | | Investment Management | 1,959 | 1,643 | 19.2% | | Other Financial Services | 17,882 | 15,468 | 15.6% | | **Group Total** | **351,022** | **458,894** | **(23.5%)** | Key Financial and Operational Indicators | Key Financial Indicator | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company (HKD millions) | 36.7 | 27.1 | 35.4% | | Loss per share (HK cents) | 45.4 | 33.6 | 35.1% | | Total assets (HKD millions) | 1,104.7 | 1,196.6 | (7.7%) | | Bank balances and cash (HKD millions) | 147.3 | 210.7 | (30.1%) | | Borrowings (HKD millions) | 277.7 | 292.4 | (5.0%) | | Retail revenue per sq. ft. (HKD) | 278 | 317.0 | (12.3%) | | Retail same store growth (vs. prior period) | (19.3%) | 5.4% | Not applicable | | Retail inventory turnover days | 25.0 | 24.0 | 4.2% | | Net gain/(loss) from financial assets at FVTPL for Investment Management (HKD millions) | (4.7) | 7.1 | (166.2%) | | Annualized average brokerage income per active client for Other Financial Services (HKD thousands) | 0.8 | 0.5 | 60.0% | - Retail business same-store growth turned from **5.4%** in the prior year to **-19.3%**, reflecting market challenges[49](index=49&type=chunk) - Net gain/(loss) from financial assets at fair value through profit or loss in investment management business turned from a gain of **HKD 7.1 million** in the prior year to a loss of **HKD 4.7 million**[49](index=49&type=chunk) [Industry and Business Review](index=19&type=section&id=Industry%20and%20Business%20Review) This section reviews the performance and strategic initiatives across the Group's retail management, algorithmic trading, and other financial services businesses, highlighting market conditions and future outlook [Retail Management Business (Pricerite Group)](index=19&type=section&id=Retail%20Management%20Business%20(Pricerite%20Group)) Hong Kong's retail sector remains under pressure, with furniture and home furnishings being the worst-performing segment, while Pricerite Group actively responds to market challenges by optimizing its business model, launching a new brand "Pricerite | Create Home" for public housing customers, streamlining store operations, expanding pricing strategies, and strengthening e-commerce collaborations - Hong Kong's total retail sales value declined by **3.3%** year-on-year, with furniture and fixtures sales value decreasing by **19.0%** year-on-year[50](index=50&type=chunk) - Launched a new brand, "**Pricerite | Create Home**," specifically for public housing residents, offering custom-made furniture and renovation services[52](index=52&type=chunk) - Optimized store operations, sought rent reductions, revised frontline staff incentive plans, and expanded the "**new low price**" pricing strategy[53](index=53&type=chunk) - In e-commerce, collaborated with platforms like **HKTV Mall** and **JD.com**, and innovated online store pages to offer a more diversified product range[54](index=54&type=chunk) - Outlook: Consumer market recovery depends on interest rates, housing market stability, and consumer confidence, with Pricerite continuing to enhance customer satisfaction and operational efficiency[55](index=55&type=chunk) [Algorithmic Trading Business (Celestial Quant Group)](index=21&type=section&id=Algorithmic%20Trading%20Business%20(Celestial%20Quant%20Group)) International commodity trade markets were volatile, while the Hong Kong stock market saw a strong rebound, with Celestial Quant Group's managed funds performing well, and business development focusing on product innovation, AI-driven analysis, and distribution channel expansion - International commodity trade markets experienced increased volatility, while the Hong Kong stock market saw a strong rebound, with new share issuance market fundraising more than sevenfold[56](index=56&type=chunk) - Celestial Premium Value Stock Fund achieved a **28% return** in the first half, and Quantphem Multi-Strategy Select Fund achieved a **13% return**[57](index=57&type=chunk) - Product innovation: Celestial Premium Value Stock Fund expanded its investment mandate and initiated new thematic strategies focusing on virtual assets[58](index=58&type=chunk) - Distribution expansion: Strengthened the internal sales team, enhanced cooperation with external distributors, and explored digital channels[58](index=58&type=chunk) - Outlook: Global markets remain cautiously optimistic, with the Hong Kong stock market expected to continue its upward trend, and strategic plans focusing on innovation, resilience, and growth, integrating AI technology into research and risk management systems[59](index=59&type=chunk)[60](index=60&type=chunk) [Other Financial Services Business (Celestial Finance)](index=22&type=section&id=Other%20Financial%20Services%20Business%20(Celestial%20Finance)) The Hong Kong stock market performed strongly, with the Hang Seng Index climbing over 20% and average daily turnover significantly increasing, while Celestial Finance fully implemented AI solutions, launched Hong Kong's first no-code AI algorithmic trading platform Quantphemes, successfully expanded family office services, and strengthened its influence in mainland China - Hong Kong stock market performed strongly, with the Hang Seng Index climbing over **20%** and average daily turnover recording a **118% year-on-year increase**[61](index=61&type=chunk) - The new share issuance market regained momentum, with Hong Kong firmly holding its position as the **world's leading IPO market**[62](index=62&type=chunk) - Fully implemented **AI solutions** in business operations to enhance risk management efficiency and reduce customer communication processing time[64](index=64&type=chunk) - Launched Hong Kong's first **no-code AI algorithmic trading platform, Quantphemes**, offering professional quantitative trading services to the general public[64](index=64&type=chunk) - Family office department successfully expanded its **3I (Insurance, Investment, Immigration) services**, achieving record-high premium income[65](index=65&type=chunk) - Strengthened influence in mainland China, with plans to open offices in the Yangtze River Delta and enhance brand awareness through social media activities[65](index=65&type=chunk) - Outlook: Broad opportunities in Hong Kong's IPO sector, defensive stocks in the US market may offer opportunities, with strategic focus on strengthening cross-border cooperation, expanding immigration and education center services, and leveraging AI technology to enhance customer service[67](index=67&type=chunk)[68](index=68&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers employee information, directors' and major shareholders' interests in securities, share option schemes, corporate governance practices, and details of the company's securities transactions [Employee Information](index=24&type=section&id=Employee%20Information) As of June 30, 2025, the Group employed 481 staff, with remuneration based on performance, experience, and market conditions, providing MPF schemes, medical insurance, discretionary share options, performance bonuses, and sales commissions, and implementing various training programs to enhance employee skills and company competitiveness - Number of employees: **481**[69](index=69&type=chunk) - Total staff costs: Approximately **HKD 71,000,000**[69](index=69&type=chunk) - Employee benefits: Include Mandatory Provident Fund schemes, medical insurance plans, discretionary share options, performance bonuses, and sales commissions[70](index=70&type=chunk) - Training: Implemented various training programs covering product knowledge, customer service, sales techniques, professional regulatory training, and orientation training for new employees[71](index=71&type=chunk) [Directors' Interests in Securities](index=25&type=section&id=Directors'%20Interests%20in%20Securities) As of June 30, 2025, Dr. Kwan Pak Hoo Bankee and his controlled corporations held approximately 69.62% of the Company's shares and related share interests, with other directors holding minor stakes, and Dr. Kwan Pak Hoo Bankee and his controlled corporations holding approximately 70.53% of Celestial Finance's share interests Directors' Interests in the Company's Shares | Name | Capacity/Nature of Interest | Number of Shares (thousands) | Number of Related Shares (thousands) | Total Number of Shares (thousands) | Approximate Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Kwan Pak Hoo Bankee | Beneficial owner and interest of controlled corporation | 40,197.6 | 16,000.0 | 56,197.6 | 69.62 | | Leung Siu Pong | Beneficial owner | 37.6 | – | 37.6 | 0.05 | - Dr. Kwan Pak Hoo Bankee holds a significant number of the Company's shares and convertible bond-related shares through **Cash Guardian Limited**[72](index=72&type=chunk) - Mr. Leung Siu Pong resigned as a director on **July 2, 2025**[72](index=72&type=chunk) Directors' Interests in Celestial Finance Shares | Name (Celestial Finance) | Capacity | Personal Shareholdings (thousands) | Corporate Interest Shareholdings (thousands) | Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | | Kwan Pak Hoo Bankee | Beneficial owner and interest of controlled corporation | 26,124 | 277,989.6 | 70.53 | | Kwan Ting Hin | Beneficial owner | 4,476 | – | 1.04 | | Cheung Tsz Yui | Beneficial owner | 2,004 | – | 0.46 | [Share Option Schemes](index=27&type=section&id=Share%20Option%20Schemes) No share options were granted, exercised, lapsed, or cancelled under the Company's share option scheme during the reporting period, while under Celestial Finance's scheme, 525,000 share options remained unexercised as of June 30, 2025, with vesting conditions linked to performance targets, and no share awards were granted under Celestial Finance's share award scheme - Company's share option scheme: A total of **8,072,018 shares** are available for issue, representing approximately **10%** of issued shares, with **no share option activities** during the period[75](index=75&type=chunk) Celestial Finance Share Options | Participant (Celestial Finance) | Grant Date | Exercise Period | Exercise Price Per Share (HKD) | Unexercised as at January 1, 2025 (options) | Lapsed during the period (options) | Unexercised as at June 30, 2025 (options) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employee participants | 29/07/2021 | 01/08/2021–31/07/2025 | 0.572 | 525,000 | – | 525,000 | - Celestial Finance share options vest in **four tranches** and are subject to performance milestones/indicators[78](index=78&type=chunk) - Celestial Finance share award scheme: The trustee held **18,282,000 shares** of Celestial Finance, with **no share awards granted** during the period[77](index=77&type=chunk) [Major Shareholders](index=29&type=section&id=Major%20Shareholders) As of June 30, 2025, Hobart Assets Limited and Cash Guardian Limited were the Company's major shareholders, holding approximately 68.87% of the shares and related share interests, with Dr. Kwan Pak Hoo Bankee deemed to be interested in these holdings, alongside other major shareholders including Mr. Wong Shui Ming, Mr. Lai Wing Hung, Ms. Leung Ka Mei, Mr. Tam Cheuk Ho, and Mr. Law Ping Wah Major Shareholders' Interests in the Company's Shares | Name/Entity | Capacity | Number of Shares (thousands) | Number of Related Shares (thousands) | Total Number of Shares (thousands) | Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hobart Assets Limited | Interest of controlled corporation | 39,599.1 | 16,000.0 | 55,599.1 | 68.87 | | Cash Guardian Limited | Beneficial owner | 39,599.1 | 16,000.0 | 55,599.1 | 68.87 | | Mr. Wong Shui Ming | Beneficial owner, interest of controlled corporation and other interests | 4,110.2 | – | 4,110.2 | 5.09 | | Mr. Lai Wing Hung | Beneficial owner, interest of controlled corporation and other interests | 4,847.4 | – | 4,847.4 | 6.00 | | Ms. Leung Ka Mei | Beneficial owner and other interests | 4,847.4 | – | 4,847.4 | 6.00 | | Mr. Tam Cheuk Ho | Interest of controlled corporation | 3,163.8 | 3,200.0 | 6,363.8 | 7.88 | | Mr. Law Ping Wah | Beneficial owner | 2,501.2 | 3,200.0 | 5,701.2 | 7.06 | - Dr. Kwan Pak Hoo Bankee is deemed to be interested in the shares and related share interests held by **Hobart Assets Limited** and **Cash Guardian Limited**[79](index=79&type=chunk) - Related shares refer to shares to be issued upon full conversion of convertible bonds[79](index=79&type=chunk) [Corporate Governance](index=31&type=section&id=Corporate%20Governance) The Company strictly complied with the Corporate Governance Code during the reporting period, with two deviations: the roles of Chairman and Chief Executive Officer are combined in Dr. Kwan Pak Hoo Bankee, and three independent non-executive directors have served for over nine years without new appointments, though the Board believes these deviations do not adversely affect the Company - Compliance status: The Company has strictly complied with the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[82](index=82&type=chunk) - Deviation 1: The roles of Chairman and Chief Executive Officer are combined in **Dr. Kwan Pak Hoo Bankee**, which the Board believes provides strong leadership and enhances decision-making efficiency[85](index=85&type=chunk) - Deviation 2: Three independent non-executive directors (Mr. Leung Ka Kui, Mr. Wong Chor Yan, Dr. Chan Hak Sin) have served for **over nine years**, but no new independent non-executive directors have been appointed; the Board believes they maintain independent judgment and contribute to board stability[85](index=85&type=chunk) - Compliance with Model Code: All directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[83](index=83&type=chunk) - Results review: This interim results announcement has not been reviewed by the Company's auditor but has been reviewed by the Company's Audit Committee[84](index=84&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Securities) For the six months ended June 30, 2025, the Company repurchased a total of 22,000 shares on the Stock Exchange in two transactions, with prices ranging from HKD 0.58 to HKD 0.78, and no other repurchases, sales, or redemptions of listed securities occurred during the period Share Repurchase Details | Repurchase Date | Number of Shares Repurchased (shares) | Highest Price Paid (HKD) | Lowest Price Paid (HKD) | | :--- | :--- | :--- | :--- | | April 7, 2025 | 10,000 | 0.78 | 0.78 | | April 17, 2025 | 12,000 | 0.59 | 0.58 | | **Total** | **22,000** | | | - No other listed securities were repurchased, sold, or redeemed by the Company during the period[86](index=86&type=chunk)

[Company Information and Report Overview](index=1&type=section&id=Company%20Information%20and%20Report%20Overview) This report presents the unaudited condensed consolidated financial results of Asiaray Media Group Limited for the six months ended June 30, 2025, with comparative data for 2024 - Asiaray Media Group Limited announced its unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section outlines the Group's financial performance, including comprehensive income and balance sheet status, reflecting a turnaround to profit in H1 2025 and adjustments to the asset-liability structure [Condensed Consolidated Statement of Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group achieved a turnaround to profit in H1 2025 with a net profit of RMB 14.6 million, compared to a loss of RMB 7.6 million in the prior period, driven by significantly lower net finance costs and increased operating profit Condensed Consolidated Statement of Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 421,955 | 580,953 | | Cost of revenue | (306,757) | (416,006) | | Gross profit | 115,198 | 164,947 | | Selling and marketing expenses | (37,446) | (58,108) | | Administrative expenses | (53,162) | (74,924) | | Net impairment losses on financial assets | (8,165) | (6,223) | | Other income | 5,980 | 5,124 | | Other gains / (losses), net | 27,593 | 15,217 | | Operating profit | 49,998 | 46,033 | | Finance income | 739 | 1,305 | | Finance costs | (27,312) | (54,736) | | Net finance costs | (26,573) | (53,431) | | Share of net loss of investments accounted for using the equity method | (1,531) | (2,016) | | Profit / (loss) before income tax | 21,894 | (9,414) | | Income tax expense / (credit) | (7,270) | 1,847 | | Profit / (loss) for the period | 14,624 | (7,567) | | Attributable to: | | | | Owners of the Company | 2,165 | (13,979) | | Non-controlling interests | 12,459 | 6,412 | | **Total profit / (loss) for the period** | **14,624** | **(7,567)** | | Loss per share attributable to owners of the Company for the period (RMB cents per share) | (0.8) | (4.2) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and liabilities decreased, but total equity slightly increased, indicating an improved financial structure, though current liabilities still exceed current assets Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 981,869 | 1,179,045 | | Current assets | 808,112 | 874,910 | | **Total assets** | **1,789,981** | **2,053,955** | | **Equity and Liabilities** | | | | Equity attributable to owners of the Company | 71,118 | 77,389 | | Non-controlling interests | 195,521 | 183,245 | | **Total equity** | **266,639** | **260,634** | | Non-current liabilities | 427,396 | 613,205 | | Current liabilities | 1,095,946 | 1,180,116 | | **Total liabilities** | **1,523,342** | **1,793,321** | | **Total equity and liabilities** | **1,789,981** | **2,053,955** | [Notes to the Condensed Consolidated Interim Financial Information](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section details the basis of preparation, accounting policies, significant estimates, segment information, and specific components and changes of financial items, providing essential context for understanding the financial statements [1 General Information](index=5&type=section&id=1%20General%20Information) This section provides company registration details, listing venue, primary business scope (out-of-home advertising media development and operation, including airports, subways, billboards, and creative building advertisements), and the presentation currency and approval date of financial information - The Company primarily engages in the development and operation of out-of-home advertising media in Mainland China, Hong Kong, Macau, and Southeast Asia, including airports, subway lines, billboards, and creative building advertisements[7](index=7&type=chunk) [2 Basis of Preparation](index=5&type=section&id=2%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared in accordance with HKAS 34 and presented on a going concern basis, as management believes available funding sources are sufficient for the next 12 months, despite current liabilities exceeding current assets - As of June 30, 2025, the Group's current liabilities exceeded its current assets by approximately **RMB 287,834,000**[8](index=8&type=chunk) - Management believes that the Group's available funding sources are sufficient to meet its financial obligations due within the next twelve months from June 30, 2025, thus preparing the financial information on a going concern basis[9](index=9&type=chunk) - The revised standards adopted by the Group for the first time for financial years beginning on or after January 1, 2025, had no significant impact on the Group's results and financial position[11](index=11&type=chunk) New and Revised Standards and Interpretations Not Yet Adopted | Standard Name | Description | Effective for annual periods beginning on or after | | :--- | :--- | :--- | | Amendments to HKFRS 9 and HKFRS 7 | Classification and Measurement of Financial Instruments | January 1, 2026 | | Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 | Annual Improvements to HKFRS Standards – Volume 11 | January 1, 2026 | | HKFRS 18 | Presentation and Disclosure in Financial Statements | January 1, 2027 | | HKFRS 19 | Non-publicly Accountable Subsidiaries: Disclosures | January 1, 2027 | | Amendments to HK(IFRIC)-Int 5 | Presentation of Financial Statements – Classification by a Borrower of a Term Loan that Contains a Repayment on Demand Clause | January 1, 2027 | | Amendments to HKFRS 10 and HKAS 28 | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | To be determined | [3 Significant Estimates](index=7&type=section&id=3%20Significant%20Estimates) The preparation of condensed consolidated interim financial information requires management judgments, estimates, and assumptions affecting reported amounts of accounting policies, assets, liabilities, income, and expenses, with primary sources consistent with those applied in the 2024 annual consolidated financial statements - In preparing these condensed consolidated interim financial information, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied in the consolidated financial statements for the year ended December 31, 2024[14](index=14&type=chunk) [4 Segment Information](index=7&type=section&id=4%20Segment%20Information) The Group manages and assesses performance based on three operating segments: Airport Business, Subway and Billboard Business, and Bus and Other Businesses, providing detailed financial data including revenue, costs, gross profit, and geographical distribution for each segment, reflecting differentiated performance [Description of Operating Segments](index=7&type=section&id=Description%20of%20Operating%20Segments) The Group's main operating segments include Airport Business, Subway and Billboard Business, and Bus and Other Businesses, with performance assessed by key operating decision-makers based on revenue and gross profit for each segment - The Group has three major operating segments: Airport Business, Subway and Billboard Business, and Bus and Other Businesses[18](index=18&type=chunk) [Operating Segment Performance](index=8&type=section&id=Operating%20Segment%20Performance) In H1 2025, Subway and Billboard Business saw increased revenue and gross profit, Bus and Other Businesses experienced a revenue decrease but a significant gross profit margin improvement, while Airport Business revenue and gross profit declined substantially Operating Segment Performance (For the six months ended June 30) **For the six months ended June 30, 2025** | Segment | Revenue (RMB Thousand) | Cost of revenue (RMB Thousand) | Gross profit (RMB Thousand) | Segment results (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | | Airport Business | 105,319 | (102,479) | 2,840 | 1,841 | | Subway and Billboard Business | 224,426 | (142,560) | 81,866 | 81,334 | | Bus and Other Businesses | 92,210 | (61,718) | 30,492 | 30,492 | | **Total** | **421,955** | **(306,757)** | **115,198** | **113,667** | **For the six months ended June 30, 2024** | Segment | Revenue (RMB Thousand) | Cost of revenue (RMB Thousand) | Gross profit (RMB Thousand) | Segment results (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | | Airport Business | 180,822 | (101,901) | 78,921 | 76,146 | | Subway and Billboard Business | 187,098 | (132,917) | 54,181 | 54,940 | | Bus and Other Businesses | 213,033 | (181,188) | 31,845 | 31,845 | | **Total** | **580,953** | **(416,006)** | **164,947** | **162,931** | [Revenue Recognition Timing and Geographical Distribution](index=10&type=section&id=Revenue%20Recognition%20Timing%20and%20Geographical%20Distribution) The Group's revenue primarily derives from advertising publication, with most revenue recognized over time, and Mainland China remains the main revenue source, though revenue share from Hong Kong and other countries has decreased Revenue Type (For the six months ended June 30) | Revenue Type | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Advertising publication revenue | 353,549 | 454,542 | | Advertising production, installation and dismantling revenue | 68,406 | 126,411 | | **Total** | **421,955** | **580,953** | Revenue Recognition Timing (For the six months ended June 30) | Revenue Recognition Timing | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue recognized over time | 353,549 | 454,542 | | Revenue recognized at a point in time | 68,406 | 126,411 | | **Total** | **421,955** | **580,953** | Revenue Geographical Distribution (For the six months ended June 30) | Region | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 270,282 | 319,130 | | Hong Kong and other countries | 151,673 | 261,823 | | **Total** | **421,955** | **580,953** | [Geographical Distribution of Non-current Assets](index=11&type=section&id=Geographical%20Distribution%20of%20Non-current%20Assets) The Group's non-current assets are primarily distributed in Mainland China and Hong Kong, with non-current assets in Mainland China decreasing as of June 30, 2025 Geographical Distribution of Non-current Assets | Region | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 579,353 | 732,856 | | Hong Kong | 245,041 | 281,739 | | Other countries | 19,345 | 19,147 | | **Total** | **843,739** | **1,033,742** | [5 Components of Operating Profit](index=11&type=section&id=5%20Components%20of%20Operating%20Profit) Operating profit is primarily influenced by variable concession fees for advertising space, depreciation of right-of-use assets, and employee benefit expenses, with variable concession fees for advertising space significantly increasing year-on-year Operating Profit Deduction Items (For the six months ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Variable concession fees for advertising space | 168,732 | 56,792 | | Expenses related to short-term lease concession fees | 60,445 | 41,594 | | Depreciation of property, plant and equipment | 10,919 | 12,920 | | Depreciation of right-of-use assets | 140,454 | 260,816 | | Impairment loss on right-of-use assets | – | 5,300 | | Employee benefit expenses | 73,147 | 93,405 | | Project installation and dismantling costs | 28,794 | 54,143 | | Travel and entertainment expenses | 3,963 | 7,944 | | Amortisation of intangible assets | 868 | 1,082 | [6 Components of Other Income](index=12&type=section&id=6%20Components%20of%20Other%20Income) Other income primarily includes advertising design service income, advertising consulting service income, and rental income, with the total amount slightly increasing in H1 2025 Components of Other Income (For the six months ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Advertising design service income | 3,302 | 2,891 | | Advertising consulting service income | 538 | 48 | | Rental income | 1,402 | 1,587 | | Dividend income | 196 | 194 | | Government grant income | 28 | – | | Others | 514 | 404 | | **Total** | **5,980** | **5,124** | [7 Other Gains / (Losses), Net](index=12&type=section&id=7%20Other%20Gains%20%2F%20(Losses)%2C%20Net) In H1 2025, the Group's net other gains significantly increased, primarily due to higher gains from early termination of leases Other Gains / (Losses), Net Components (For the six months ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Net gain / (loss) on early termination of leases | 28,354 | 14,798 | | Fair value gain / (loss) on investment properties | – | (1,393) | | Fair value gain / (loss) on financial assets at fair value through profit or loss | – | (257) | | Gain / (loss) on disposal of property, plant and equipment | (28) | (44) | | Net exchange gain / (loss) | (626) | 424 | | Others | (107) | 1,689 | | **Total** | **27,593** | **15,217** | [8 Net Finance Costs](index=13&type=section&id=8%20Net%20Finance%20Costs) The Group's net finance costs significantly decreased year-on-year, mainly due to a substantial reduction in interest expenses on bank borrowings and lease liabilities Net Finance Costs Components (For the six months ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Interest income from bank deposits | (739) | (1,305) | | Interest expense on bank borrowings | 8,673 | 11,269 | | Interest expense on lease liabilities | 18,639 | 43,467 | | **Net finance costs** | **26,573** | **53,431** | [9 Income Tax Expense / (Credit)](index=13&type=section&id=9%20Income%20Tax%20Expense%20%2F%20(Credit)) In H1 2025, the Group shifted from an income tax credit in the prior period to an income tax expense, primarily due to an increase in deferred income tax expense Income Tax Expense / (Credit) Analysis (For the six months ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | PRC enterprise income tax expense | 526 | 1,677 | | Deferred income tax expense / (credit) | 6,744 | (3,605) | | Under-provision in prior years | – | 81 | | **Total** | **7,270** | **(1,847)** | [10 Earnings / (Loss) Per Share](index=14&type=section&id=10%20Earnings%20%2F%20(Loss)%20Per%20Share) The Group's basic loss per share significantly narrowed from RMB 4.2 cents in the prior period to RMB 0.8 cents in H1 2025 Basic Earnings / (Loss) Per Share Calculation (For the six months ended June 30) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit / (loss) attributable to owners of the Company (RMB Thousand) | 2,165 | (13,979) | | Less: Distribution on perpetual subordinated convertible securities (RMB Thousand) | (5,830) | (5,775) | | **Profit / (loss) for the purpose of calculating basic earnings / (loss) per share** | **(3,665)** | **(19,754)** | | Weighted average number of ordinary shares in issue (Thousand shares) | 476,930 | 475,934 | | **Earnings / (loss) per share (RMB cents per share)** | **(0.8)** | **(4.2)** | - For the periods ended June 30, 2025 and 2024, the Group's perpetual subordinated convertible securities may dilute basic loss per share in the future, but they were not included in the calculation of diluted loss per share due to their anti-dilutive effect during the period[32](index=32&type=chunk) [11 Dividends](index=14&type=section&id=11%20Dividends) No dividends were paid or proposed by the company for the six months ended June 30, 2025, or 2024 - No dividends were paid or proposed for the six months ended June 30, 2025 and 2024, and no dividends have been proposed since the end of the interim reporting period[33](index=33&type=chunk) [12 Trade and Other Receivables](index=15&type=section&id=12%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased, with net trade receivables and recoverable VAT reducing, but prepayments increasing Trade and Other Receivables | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade receivables, net | 287,813 | 310,715 | | Other receivables, net | 128,933 | 149,849 | | Interest receivables | 15 | 20 | | Recoverable VAT | 38,826 | 42,239 | | Prepayments | 78,403 | 71,063 | | **Total current assets** | **533,990** | **573,886** | | Non-current assets - Deposits | 3,748 | 5,171 | | **Total** | **537,738** | **579,057** | Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Up to 6 months | 166,679 | 186,653 | | 6 to 12 months | 34,751 | 47,662 | | 1 to 2 years | 70,715 | 70,989 | | 2 to 3 years | 41,165 | 35,797 | | Over 3 years | 99,242 | 96,437 | | **Total** | **412,552** | **437,538** | [13 Trade and Other Payables](index=16&type=section&id=13%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables slightly decreased, with trade payables and salaries & employee benefits payable reducing, but accrued advertising space concession fees significantly increasing Trade and Other Payables | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade payables | 171,386 | 200,229 | | Accrued advertising space concession fees | 82,026 | 38,650 | | Other tax payables | 1,301 | 2,518 | | Interest payables | 558 | 559 | | Salaries and employee benefits payable | 10,328 | 25,142 | | Other payables | 68,826 | 75,164 | | **Total** | **334,425** | **342,262** | Trade Payables Ageing Analysis | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Up to 6 months | 122,394 | 83,183 | | 6 to 12 months | 27,310 | 66,582 | | 1 to 2 years | 12,569 | 43,448 | | 2 to 3 years | 2,575 | 2,114 | | Over 3 years | 6,538 | 4,902 | | **Total** | **171,386** | **200,229** | [14 Right-of-Use Assets and Lease Liabilities](index=17&type=section&id=14%20Right-of-Use%20Assets%20and%20Lease%20Liabilities) As of June 30, 2025, both right-of-use assets and lease liabilities significantly decreased, primarily due to depreciation and lease termination activities Right-of-Use Assets Movement (As of June 30, 2025) | Class of Right-of-Use Assets | January 1, 2025 (Audited) (RMB Thousand) | Additions (RMB Thousand) | Depreciation (RMB Thousand) | Terminations (RMB Thousand) | Exchange differences (RMB Thousand) | June 30, 2025 (Unaudited) (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Land use rights | 17,377 | – | (284) | – | – | 17,093 | | Advertising equipment | 694,622 | 48,087 | (135,796) | (88,572) | (1,015) | 517,326 | | Offices | 12,966 | 2,299 | (4,374) | – | (69) | 10,822 | | **Total** | **724,965** | **50,386** | **(140,454)** | **(88,572)** | **(1,084)** | **545,241** | Lease Liabilities | Lease Liabilities | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current portion | 421,860 | 499,569 | | Non-current portion | 323,215 | 508,179 | | **Total lease liabilities** | **745,075** | **1,007,748** | [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business performance, segment operations, new media strategy progress, future outlook, and changes in financial indicators, explaining the drivers of financial improvement and outlining financial management policies, demonstrating a turnaround to profit through strategic adjustments [Business Review](index=18&type=section&id=Business%20Review) In H1 2025, the Group achieved a turnaround to profit through strategies like optimizing media networks, selectively withdrawing from unprofitable resources, and reacquiring high-potential resources, maintaining stable operating profit and gross margin, and a sound financial position - The Group drove financial improvement through comprehensive strategies including optimizing its media network, selectively withdrawing from unprofitable resources, and reacquiring resources with growth potential[37](index=37&type=chunk) - The Group successfully achieved a turnaround to profit during the period, recording a profit of **RMB 14.6 million**, compared to a loss of **RMB 7.6 million** in the same period last year[38](index=38&type=chunk) - As of June 30, 2025, the Group's cash and cash equivalents (including restricted cash) amounted to **RMB 200.2 million**, indicating a sound financial position[39](index=39&type=chunk) [Business Segment Performance](index=19&type=section&id=Business%20Segment%20Performance) Business segment performance was mixed, with Subway and Billboard Business showing significant growth in revenue and gross profit, Bus and Other Businesses experiencing a revenue decline but a substantial increase in gross profit margin, and Airport Business seeing a sharp drop in both revenue and gross profit [Subway and Billboard Business](index=19&type=section&id=Subway%20and%20Billboard%20Business) This segment's revenue increased by 19.9% to RMB 224.4 million, with gross margin rising by 7.5 percentage points to 36.5%, driven by cross-border advertising, reacquired resources like Shenzhen Metro, and enhanced advertising value at Hong Kong West Kowloon Station - Subway and Billboard Business revenue increased by **19.9%** to **RMB 224.4 million**, with gross margin rising by **7.5 percentage points** to **36.5%**[40](index=40&type=chunk) - The Group's reacquired resources, such as Shenzhen Metro, contributed as expected, while advertising value at Hong Kong West Kowloon Station significantly improved, and innovative advertising solutions were successfully planned[40](index=40&type=chunk) - The Group utilized cutting-edge 3D technology to transform prime billboard locations in Tsim Sha Tsui into viral marketing campaigns for fashion brands[41](index=41&type=chunk) [Bus and Other Businesses](index=20&type=section&id=Bus%20and%20Other%20Businesses) This segment's revenue was RMB 92.2 million, impacted by reduced media resources due to proactive termination of unprofitable contracts, but gross margin significantly improved by 18.2 percentage points to 33.1%, this was driven by streamlined operations and increased efficiency - Bus and Other Businesses revenue was **RMB 92.2 million**, with gross margin significantly increasing by **18.2 percentage points** to **33.1%**[42](index=42&type=chunk) - The improvement in gross margin was primarily due to streamlined operational processes and increased efficiency[42](index=42&type=chunk) - The Group promoted international sports brand giants and local fitness organizations during Hong Kong's flagship marathon, and created large-scale bus terminal themed visual spaces for renowned e-commerce giants[42](index=42&type=chunk) [Airport Business](index=20&type=section&id=Airport%20Business) This segment's revenue was RMB 105.3 million, with a gross profit of RMB 2.8 million and a gross margin of 2.7%, expected to fully recover after operational restructuring - Airport Business revenue was **RMB 105.3 million**, with a gross margin of **2.7%**[43](index=43&type=chunk) - This segment is expected to achieve a full recovery after the completion of operational restructuring[43](index=43&type=chunk) [Out-of-Home Online New Media Strategic Development](index=20&type=section&id=Out-of-Home%20Online%20New%20Media%20Strategic%20Development) Leveraging its Out-of-Home Online (O&O) new media strategy and DOOH+ platform, the Group effectively connected brands with audiences through innovative advertising campaigns and deepened collaborations with programmatic advertising platforms, earning 23 industry awards - The Group won **23 industry awards** for its innovative advertising campaigns, with its Out-of-Home Online (O&O) new media strategy and DOOH+ platform deeply integrating market insights[44](index=44&type=chunk) - The Group deepened its collaboration with leading programmatic advertising platforms such as The Trade Desk, Hivestack by Perion, and Vistar Media, enhancing intelligent and efficient matching[45](index=45&type=chunk) - The Group executed data-driven advertising campaigns for food delivery platforms, precisely pushing meal choices and promotional information based on time-of-day changes, significantly improving conversion effectiveness[45](index=45&type=chunk) [Outlook](index=21&type=section&id=Outlook) The Group is cautiously optimistic for H2 2025, anticipating cross-border tourism and the event economy as key growth drivers, and aims for sustainable development by optimizing media resource portfolios, strengthening internal controls, and deepening partnerships - Asiaray enters H2 2025 with cautious optimism, anticipating cross-border tourism and the event economy to be significant growth drivers in the near term[46](index=46&type=chunk) - The Group has secured the exclusive franchise for media resources in Hong Kong's Eastern Harbour Crossing for three years, further solidifying its market position[46](index=46&type=chunk) - The Group continues to strengthen internal controls, adheres to prudent financial management principles, and optimizes its media resource portfolio to enhance profitability by deepening partnerships with key media resource owners[47](index=47&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) This section analyzes year-on-year changes in the Group's financial indicators, including revenue, costs, gross profit, various expenses, finance costs, taxes, EBITDA, and profit/loss attributable to owners, revealing the main drivers of improved financial performance [Revenue Analysis](index=23&type=section&id=Revenue%20Analysis) Total Group revenue decreased by 27.4% year-on-year to RMB 422.0 million, primarily due to the termination of multiple projects, with significant declines in Airport and Bus & Other segments, while the Subway & Billboard segment saw revenue growth - The Group's revenue for the period decreased by **27.4%** from **RMB 581.0 million** in the same period of 2024 to **RMB 422.0 million**, primarily due to the termination of multiple projects[48](index=48&type=chunk) - Airport segment revenue decreased by **41.8%** to **RMB 105.3 million**, mainly due to the early termination of the Kunming Airport project[48](index=48&type=chunk) - Subway and Billboard segment revenue increased by **20.0%** to **RMB 224.4 million**, primarily due to an increase in exclusive subway lines and billboards in Mainland China and Hong Kong[48](index=48&type=chunk) - Bus and Other segment revenue decreased by **56.7%** to **RMB 92.2 million**, mainly due to the expiry of bus body projects[49](index=49&type=chunk) [Cost of Revenue Analysis](index=23&type=section&id=Cost%20of%20Revenue%20Analysis) Cost of revenue decreased by 26.3% from RMB 416.0 million in the same period of 2024 to RMB 306.8 million in the current period, primarily attributable to project terminations and reduced rental expenses - Cost of revenue decreased by **RMB 109.2 million** or **26.3%** from **RMB 416.0 million** in the same period of 2024 to **RMB 306.8 million** in the current period, primarily attributable to project terminations and reduced rental expenses[50](index=50&type=chunk) [Gross Profit and Gross Margin Analysis](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Analysis) Gross profit for the period slightly decreased by 30.2% to RMB 115.2 million from RMB 164.9 million in the same period of 2024, while gross margin slightly decreased from 28.4% to 27.3% - Gross profit for the period slightly decreased by **RMB 49.7 million** or **30.2%** to **RMB 115.2 million** from **RMB 164.9 million** in the same period of 2024, while gross margin slightly decreased from **28.4%** in the same period of 2024 to **27.3%** in the current period[51](index=51&type=chunk) [Selling and Marketing Expenses Analysis](index=23&type=section&id=Selling%20and%20Marketing%20Expenses%20Analysis) Selling and marketing expenses decreased by 35.6% from RMB 58.1 million in the same period of 2024 to RMB 37.4 million in the current period - Selling and marketing expenses decreased by **RMB 20.7 million** or **35.6%** from **RMB 58.1 million** in the same period of 2024 to **RMB 37.4 million** in the current period[52](index=52&type=chunk) [Administrative Expenses Analysis](index=23&type=section&id=Administrative%20Expenses%20Analysis) Administrative expenses decreased by 29.0% from RMB 74.9 million in the same period of 2024 to RMB 53.2 million in the current period - Administrative expenses decreased by **RMB 21.8 million** or **29.0%** from **RMB 74.9 million** in the same period of 2024 to **RMB 53.2 million** in the current period[53](index=53&type=chunk) [Net Finance Costs Analysis](index=23&type=section&id=Net%20Finance%20Costs%20Analysis) Net finance costs decreased by 50.3% from RMB 53.4 million in the same period of 2024 to RMB 26.6 million in the current period, primarily due to reduced interest expenses from lease liabilities under HKFRS 16 - Net finance costs decreased by **RMB 26.9 million** or **50.3%** from **RMB 53.4 million** in the same period of 2024 to **RMB 26.6 million** in the current period, primarily due to reduced interest expenses from lease liabilities under HKFRS 16[54](index=54&type=chunk) [Share of Net Loss of Investments Accounted for Using the Equity Method Analysis](index=24&type=section&id=Share%20of%20Net%20Loss%20of%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method%20Analysis) The share of net loss from investments in associates decreased by 24.1% from RMB 2.0 million in the same period of 2024 to RMB 1.5 million in the current period, mainly due to reduced media losses from Shenzhen Airport - The share of net loss from investments in associates decreased by **24.1%** from **RMB 2.0 million** in the same period of 2024 to **RMB 1.5 million** in the current period, mainly due to reduced media losses from Shenzhen Airport[55](index=55&type=chunk) [Income Tax Expense / (Credit) Analysis](index=24&type=section&id=Income%20Tax%20Expense%20%2F%20(Credit)%20Analysis) Income tax expense / (credit) decreased by 493.6% from an income tax credit of RMB 1.8 million in the same period of 2024 to an income tax expense of RMB 7.3 million in the current period - Income tax expense / (credit) decreased by **493.6%** from an income tax credit of **RMB 1.8 million** in the same period of 2024 to an income tax expense of **RMB 7.3 million** in the current period[56](index=56&type=chunk) [EBITDA Analysis](index=24&type=section&id=EBITDA%20Analysis) The Group's EBITDA decreased by 37.1% from RMB 320.1 million in the same period of 2024 to RMB 201.5 million in the current period - The Group's EBITDA decreased by **RMB 118.7 million** or **37.1%** from **RMB 320.1 million** in the same period of 2024 to **RMB 201.5 million** in the current period[57](index=57&type=chunk) [Profit / (Loss) Attributable to Owners of the Company Analysis](index=24&type=section&id=Profit%20%2F%20(Loss)%20Attributable%20to%20Owners%20of%20the%20Company%20Analysis) Profit attributable to owners of the Company increased by 115.5% from a loss of RMB 14.0 million in the same period of 2024 to a profit of RMB 2.2 million in the current period - Profit attributable to owners of the Company increased by **RMB 16.2 million** or **115.5%** from a loss of **RMB 14.0 million** in the same period of 2024 to a profit of **RMB 2.2 million** in the current period[58](index=58&type=chunk) [Financial Management and Treasury Policy](index=24&type=section&id=Financial%20Management%20and%20Treasury%20Policy) The Group adopts a conservative approach to cash management and fund investments, with most income and expenses denominated in RMB and HKD, and directors believe there are no significant foreign exchange risks - The Group adopts a conservative approach to cash management and fund investments, with most of its income and expenditure items denominated in RMB and HKD, and the Directors believe there are no significant foreign exchange risks[59](index=59&type=chunk) [Dividend Policy](index=24&type=section&id=Dividend%20Policy) The company is committed to balancing shareholder expectations with prudent capital management, with its dividend policy based on profit attributable to owners of the Company, and distribution amounts can be up to 100% - The Company's adopted dividend policy is based on the profit attributable to owners of the Company, with distribution amounts potentially up to **100%** of the profit attributable to owners of the Company[60](index=60&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and cash equivalents decreased, while its current ratio and gearing ratio remained stable - As of June 30, 2025, the Group's cash and cash equivalents, and restricted cash amounted to **RMB 200.2 million**, a decrease from **RMB 232.5 million** as of December 31, 2024[61](index=61&type=chunk) Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 0.75 | 0.75 | | Gearing Ratio | 0.5 | 0.4 | [Borrowings](index=25&type=section&id=Borrowings) As of June 30, 2025, the Group's total bank borrowings amounted to RMB 323.5 million, with most repayable within one year - As of June 30, 2025, the Group's total bank borrowings amounted to **RMB 323.5 million**; of the total borrowings, **RMB 220.5 million** is repayable within one year, and **RMB 103.0 million** is repayable after one year[62](index=62&type=chunk) [Interest Rate Risk](index=26&type=section&id=Interest%20Rate%20Risk) The Group's interest rate risk primarily stems from floating-rate bank borrowings, with management mitigating this risk by closely monitoring macroeconomic conditions and interest rate changes - The Group's interest rate risk primarily arises from floating-rate bank borrowings[63](index=63&type=chunk) [Pledge of Assets](index=26&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, and December 31, 2024, the Group had not pledged any of its assets to secure any borrowings - As of June 30, 2025, and December 31, 2024, the Group had not pledged any of its assets to secure any of its borrowings[64](index=64&type=chunk) [Capital Expenditure](index=26&type=section&id=Capital%20Expenditure) Capital expenditure for the period was RMB 4.8 million, primarily for property, plant, and equipment, representing an increase from the prior period - During the period, capital expenditure amounted to **RMB 4.8 million**, primarily comprising cash expenditure for property, plant, and equipment[65](index=65&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant outstanding contingent liabilities - As of June 30, 2025, and December 31, 2024, the Group had no significant outstanding contingent liabilities[66](index=66&type=chunk) [Events After the Reporting Period](index=26&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events affecting the Group have occurred since June 30, 2025, up to the date of this announcement - No significant events affecting the Group have occurred from June 30, 2025, up to the date of this announcement[67](index=67&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This section provides supplementary information on human resources, dividends, corporate governance, directors' securities transactions, share repurchases, the audit committee, and report publication, emphasizing the company's operational and governance transparency [Human Resources and Remuneration Policy](index=27&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) The Group offers competitive remuneration and benefits to employees, with 476 employees as of June 30, 2025, and total salaries and related costs decreasing year-on-year - As of June 30, 2025, the Group had **476 employees** (June 30, 2024: 612 employees)[68](index=68&type=chunk) - Total salaries and related costs for the current period and the same period in 2024 were **RMB 67.8 million** and **RMB 93.4 million**, respectively[68](index=68&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the current period - The Board does not recommend the payment of an interim dividend for the current period (June 30, 2024: nil)[69](index=69&type=chunk) [Corporate Governance](index=27&type=section&id=Corporate%20Governance) The company complies with the Corporate Governance Code in Appendix C1 of the Listing Rules, with deviations regarding the non-segregation of Chairman and CEO roles and non-executive directors' attendance at general meetings - During the period, the Company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules, save for deviations from code provisions C.2.1 and C.1.5 of the Corporate Governance Code[70](index=70&type=chunk) - Mr. Lam Tak Hing is currently both the Chairman of the Board and the Chief Executive Officer of the Company, and the Board believes this structure enhances the efficiency of the Company's strategy formulation and implementation[70](index=70&type=chunk) [Standard Code for Securities Transactions by Directors](index=28&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance - The Company has made specific enquiries with all Directors, and all Directors have confirmed their compliance with the standards set out in the Standard Code during the period[71](index=71&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) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[72](index=72&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The Company's Audit Committee has reviewed the unaudited consolidated financial results and interim report for the period, agreeing with the accounting principles and practices adopted by the company, and is composed of three independent non-executive directors - The Company's Audit Committee has reviewed the Company's unaudited consolidated financial results and interim report for the period and agreed with the accounting principles and practices adopted by the Company[73](index=73&type=chunk) - The Company's Audit Committee comprises three independent non-executive Directors (namely Mr. Ma Chiu Cheung, John (Chairman), Mr. Ma Hao Hui, and Ms. Mak Ka Ling, Alice)[73](index=73&type=chunk) [Publication of Interim Results and Interim Report](index=28&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) All financial and other relevant information required by the Listing Rules will be published timely on the company's website and the HKEX website - All financial and other relevant information of the Company as required by the Listing Rules will be published timely on the Company's website (https://www.asiaray.com/zh/home/) and the HKEX website (https://www.hkexnews.hk/)[74](index=74&type=chunk) [Board Information](index=28&type=section&id=Board%20Information) This section lists the members of the Board of Directors as of the announcement date, including executive, non-executive, and independent non-executive directors - As of the date of this announcement, the executive Directors are Mr. Lam Tak Hing and Mr. Kwan Tat Cheong; the non-executive Director is Ms. Ng Hiu Ping; and the independent non-executive Directors are Mr. Ma Chiu Cheung, John, Mr. Ma Hao Hui, and Ms. Mak Ka Ling, Alice[76](index=76&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司（「香港聯交所」）對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 中國國際海運集裝箱（集團）股份有限公司 CHINA INTERNATIONAL MARINE CONTAINERS (GROUP) CO., LTD. （於中華人民共和國註冊成立之股份有限公司） 2025年半年度業績公告（2025年半年度報告摘要） 1 重要提示 （H股股份代號：02039） （A股股份代號：000039） 1 1.1 中國國際海運集裝箱（集團）股份有限公司（「本公司」或「中集」，與其附屬公司合 稱「本集團」或「集團」）董事會（「董事會」）、監事會（「監事會」）及董事（「董事」）、 監事（「監事」）、高級管理人員保證2025年半年度業績公告（「本公告」）所載資 料不存在虛假記載、誤導性陳述或者重大遺漏，並對本集團截至2025年6月 30日之半年度報告（「2025年半年度報告」）之內容的真實性、準確性和完整性 承擔個別及連帶責任。本公告摘自2025年半年度報告，並在香港聯 ...

[Interim Results Summary](index=1&type=section&id=Summary) The Group's continuing operations saw a slight revenue decrease but improved gross profit, a significant turnaround from loss to profit, and stable gearing ratio Key Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ Million) | 2024 (HK$ Million) (Restated) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (Continuing Operations) | 363 | 369 | (2%) | | Gross Profit (Continuing Operations) | 243 | 242 | 1% | | Profit/(Loss) Attributable to Equity Holders | 137 | (81) | (269%) | | Earnings/(Loss) Per Share | **4.88 HK cents** | **(2.89) HK cents** | - | - Revenue from continuing operations decreased by **2%** to **HK$362.7 million**, primarily due to a lack of blockbuster films and reduced attendance during the period[3](index=3&type=chunk) - Gross profit from continuing operations increased by **1%** to **HK$242.9 million**, mainly driven by higher-margin film licensing fee income during the period[3](index=3&type=chunk) - Profit attributable to equity holders turned from a **HK$81 million loss in 2024** to a **HK$136.7 million profit in 2025**, primarily due to non-recurring gains from cinema lease terminations (**HK$19.1 million reversal** and **HK$85.8 million lease modification**), a **HK$32.6 million tax credit** from deferred tax liability reversal on the Singapore property sale, and no non-financial asset impairment losses in 2025 (compared to **HK$313.3 million in 2024**)[4](index=4&type=chunk) - The gearing ratio remained stable at **9.0%** (December 31, 2024: **8.0%**)[4](index=4&type=chunk) [Interim Results](index=3&type=section&id=Interim%20Results) The Group's interim results show a significant turnaround in profitability, driven by improved continuing operations and non-recurring gains, despite some asset reclassifications [Consolidated Statement of Profit or Loss](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's continuing operations revenue slightly decreased for the six months ended June 30, 2025, but gross profit increased, with profit attributable to equity holders significantly improving from a loss to a profit, mainly due to non-recurring gains and reduced impairment losses Key Data from Consolidated Statement of Profit or Loss (Continuing Operations) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Revenue | 362,684 | 369,249 | | Cost of Sales | (119,790) | (127,741) | | Gross Profit | 242,894 | 241,508 | | Other Income | 114,618 | 21,376 | | Profit from Operations | 115,445 | 8,827 | | Profit/(Loss) Before Tax | 105,085 | (10,731) | | Income Tax Credit/(Expense) | 31,627 | (6,947) | | Profit/(Loss) for the Period from Continuing Operations | 136,712 | (17,678) | Key Data from Consolidated Statement of Profit or Loss (Discontinued Operations) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Gain on Disposal of Interest in a Joint Venture | – | 285,575 | | Exchange Reserve Realized on Disposal | – | 8,723 | | Loss for the Period from Discontinued Operations | – | (357,668) | | Profit/(Loss) for the Period | 136,712 | (81,048) | Earnings/(Loss) Per Share (HK cents) | Indicator | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Continuing Operations | **4.88** | **(0.63)** | | Discontinued Operations | – | **(2.26)** | | Total | **4.88** | **(2.89)** | - Total comprehensive income for the period turned from a **HK$114,404 thousand loss in 2024** to a **HK$235,596 thousand profit in 2025**, primarily due to positive exchange differences from subsidiaries outside Hong Kong[8](index=8&type=chunk) [Consolidated Statement of Financial Position](index=6&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The Group's total non-current assets decreased, but net current assets turned from negative to positive, reflecting adjustments in asset structure, while net assets and total equity attributable to shareholders both decreased Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Non-current Assets | 1,601,716 | 1,905,656 | | Current Assets | 495,440 | 211,792 | | Current Liabilities | 443,308 | 358,857 | | Net Current Assets/(Liabilities) | 52,132 | (147,065) | | Total Assets Less Current Liabilities | 1,653,848 | 1,758,591 | | Non-current Liabilities | 588,801 | 248,462 | | Net Assets | 1,169,790 | 1,405,386 | | Total Equity Attributable to Equity Holders of the Company | 1,169,790 | 1,405,386 | - Right-of-use assets within non-current assets significantly decreased from **HK$726,127 thousand** to **HK$390,815 thousand**, reflecting changes in leased properties[9](index=9&type=chunk) - Non-current assets held for sale of **HK$271,398 thousand** were newly added to current assets, compared to zero as of December 31, 2024, related to the Singapore property disposal[9](index=9&type=chunk)[34](index=34&type=chunk) - Bank loans in current liabilities significantly increased from **HK$13,965 thousand** to **HK$189,396 thousand**, while bank loans in non-current liabilities increased from zero to **HK$156,016 thousand**[9](index=9&type=chunk)[10](index=10&type=chunk) [Notes to the Unaudited Interim Financial Results](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Results) These notes detail the basis of preparation, accounting policy changes, revenue breakdown, segment reporting, profit before tax components, income tax, earnings per share, and specific balance sheet items, along with discontinued operations and post-reporting events [1 Basis of Preparation](index=8&type=section&id=1%20Basis%20of%20Preparation) These interim results are prepared in accordance with HKEX Listing Rules and HKAS 34, reviewed by the Audit Committee but unaudited, applying the same accounting policies as the 2024 annual report, reflecting management's judgments, estimates, and assumptions - The interim financial information has been prepared in accordance with the Listing Rules of 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[11](index=11&type=chunk) - The interim financial information is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[13](index=13&type=chunk) [2 Changes in Accounting Policies](index=8&type=section&id=2%20Changes%20in%20Accounting%20Policies) The Group has applied amendments to HKAS 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," but these had no material impact on the interim financial information as the Group did not undertake relevant foreign currency transactions - The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," but these had no material impact on the interim financial information[14](index=14&type=chunk) [3 Revenue](index=9&type=section&id=3%20Revenue) The Group's revenue primarily stems from film exhibition, disc and TV licensing, film and TV drama distribution, cinema operations, promotion and advertising services, and agency services, with a diversified customer base and no single customer accounting for over **10%** of revenue - Revenue primarily derives from film exhibition, disc and TV licensing, film and TV drama distribution, cinema operations, promotion and advertising services, and agency services[16](index=16&type=chunk) - The Group has a diversified customer base, with no single customer accounting for more than **10%** of the Group's revenue[17](index=17&type=chunk) [4 Segment Reporting](index=9&type=section&id=4%20Segment%20Reporting) The Group manages its operations by geographical region (Hong Kong, Mainland China, Singapore) and presents segment reports based on internal reporting to the chief operating decision-maker, with segment results calculated as adjusted operating profit after tax, excluding net finance costs, exchange differences, and non-recurring items - The Group manages its operations by geographical region (Hong Kong, Mainland China, Singapore) and presents reportable segments[18](index=18&type=chunk)[21](index=21&type=chunk) Reportable Segment Revenue (Continuing Operations) | Region | 2025 (HK$ '000) | 2024 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Hong Kong | 53,022 | 73,992 | | Mainland China | 27,204 | – | | Singapore | 300,482 | 325,226 | | Sub-total | 380,708 | 399,218 | Reportable Segment Profit/(Loss) After Tax | Region | 2025 (HK$ '000) | 2024 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Hong Kong | 3,160 | (16,442) | | Mainland China | 26,014 | (1,435) | | Singapore | 5,378 | 20,041 | | Sub-total | 34,552 | 2,164 | - Consolidated revenue from continuing operations was **HK$362,684 thousand** (2024: **HK$369,249 thousand**), and consolidated profit before tax was **HK$105,085 thousand** (2024: **HK$10,731 thousand loss**)[23](index=23&type=chunk) [5 Profit/(Loss) Before Tax](index=11&type=section&id=5%20Profit%2F%28Loss%29%20Before%20Tax) Profit before tax for the period was primarily influenced by reduced finance costs, increased staff costs, decreased depreciation expenses, and non-recurring gains from lease modifications and reversal of restoration cost provisions, with no non-financial asset impairment losses recorded in 2025, unlike the significant impairment losses in 2024 Finance Costs (Continuing Operations) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Interest on bank loans | 3,656 | 14,406 | | Interest on lease liabilities | 6,531 | 9,053 | | Other borrowing costs | 173 | 1,351 | | Total | 10,360 | 24,810 | | Less: Finance costs capitalised | – | (5,252) | | Net | 10,360 | 19,558 | Staff Costs (Excluding Directors' Emoluments, Continuing Operations) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Wages, salaries and other benefits | 45,517 | 44,511 | | Contributions to defined contribution retirement plans | 5,273 | 3,800 | | Total | 50,790 | 48,311 | - Depreciation expenses for continuing operations decreased, with depreciation of owned property, plant and equipment falling from **HK$19,352 thousand** to **HK$15,550 thousand**, and depreciation of right-of-use assets decreasing from **HK$49,469 thousand** to **HK$44,027 thousand**[26](index=26&type=chunk) - The period recorded a **HK$85,849 thousand gain** from lease modifications and a **HK$19,100 thousand reversal** of restoration cost provisions, both classified as non-recurring gains[26](index=26&type=chunk) - No non-financial asset impairment losses were recorded in 2025, whereas in 2024, discontinued operations recorded **HK$225,978 thousand** impairment for fixed assets related to 360 Theatre and **HK$87,355 thousand** impairment for 360 Theatre development costs[26](index=26&type=chunk) [6 Income Tax in the Consolidated Statement of Profit or Loss](index=13&type=section&id=6%20Income%20Tax%20in%20the%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Income tax credit of **HK$31,627 thousand** was recorded for continuing operations this period, primarily due to the reversal of deferred tax liabilities, with no profits tax provision in Hong Kong and Mainland China due to losses, and Singapore corporate income tax calculated at a **17%** rate Income Tax Credit/(Expense) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Current income tax - Overseas tax provision | 1,879 | 4,688 | | Current income tax - Over-provision in prior years | (1,975) | (2) | | Deferred tax - Origination and reversal of temporary differences | (31,531) | 2,259 | | Actual tax (credit)/expense | (31,627) | 6,947 | - No provision for profits tax has been made for Hong Kong and Mainland China due to recorded losses[27](index=27&type=chunk)[28](index=28&type=chunk) - Corporate income tax provision for Singapore subsidiaries is calculated at **17%** of estimated assessable profit[28](index=28&type=chunk) [7 Earnings/(Loss) Per Share](index=14&type=section&id=7%20Earnings%2F%28Loss%29%20Per%20Share) Basic earnings per share for the period was **4.88 HK cents**, a significant improvement from the **2.89 HK cents loss per share** in the prior year, with diluted earnings per share being the same as basic earnings per share due to no dilutive potential ordinary shares Basic Earnings/(Loss) Per Share | Item | 2025 (HK$ '000) | 2024 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Profit/(Loss) attributable to equity holders - Continuing operations | 136,712 | (17,678) | | Profit/(Loss) attributable to equity holders - Discontinued operations | – | (63,370) | | Total | 136,712 | (81,048) | - Basic earnings/(loss) per share is calculated based on the profit/(loss) attributable to equity holders of the Company and the weighted average number of **2,799,669,050** ordinary shares outstanding[29](index=29&type=chunk) - The Company has no dilutive potential ordinary shares, thus diluted earnings/(loss) per share is the same as basic earnings/(loss) per share[30](index=30&type=chunk) [8 Trade Receivables](index=15&type=section&id=8%20Trade%20Receivables) The Group generally grants credit terms of **one to three months**, with total trade receivables at **HK$13,542 thousand** at the end of the reporting period, a decrease from **HK$16,783 thousand** as of December 31, 2024 - The Group generally grants credit terms ranging from **one to three months**[32](index=32&type=chunk) Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within 1 month | 7,859 | 11,965 | | Over 1 month but within 2 months | 2,092 | 2,304 | | Over 2 months but within 3 months | 2,168 | 968 | | Over 3 months | 1,423 | 1,546 | | Total | 13,542 | 16,783 | [9 Non-current Assets Held for Sale](index=15&type=section&id=9%20Non-current%20Assets%20Held%20for%20Sale) The Group entered into an agreement on June 2, 2025, to sell a property in Singapore for **SGD48,000,000**, with the sale completed on August 8, 2025, thus its carrying amount of **HK$271,398 thousand** was classified as non-current assets held for sale as of June 30, 2025 - The Group entered into a sale and purchase agreement on June 2, 2025, to dispose of a property in Singapore for **SGD48,000,000**[34](index=34&type=chunk) - The property disposal was completed on August 8, 2025, and its carrying amount of **HK$271,398 thousand** was classified as non-current assets held for sale as of June 30, 2025[34](index=34&type=chunk) [10 Trade Payables](index=15&type=section&id=10%20Trade%20Payables) Total trade payables amounted to **HK$66,589 thousand** at the end of the reporting period, an increase from **HK$61,889 thousand** as of December 31, 2024 Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within 3 months | 55,596 | 50,166 | | 4 to 6 months | 133 | 137 | | 7 to 12 months | 243 | 1,274 | | Over 1 year | 10,617 | 10,312 | | Total | 66,589 | 61,889 | [11 Discontinued Operations](index=16&type=section&id=11%20Discontinued%20Operations) The Group completed the disposal of its interest in a Taiwan joint venture (Vie Show Disposal) and a subsidiary operating 360 Theatre (360 Disposal) in 2024, classifying these as discontinued operations, resulting in no revenue or loss from discontinued operations in 2025, compared to a significant loss in 2024 - The Group disposed of its interest in a joint venture in Taiwan (Vie Show Disposal) and its interest in a subsidiary operating 360 Theatre (360 Disposal) in 2024[36](index=36&type=chunk) - These operations have been classified as discontinued operations, and comparative information for the six months ended June 30, 2024, has been restated[36](index=36&type=chunk) Results of Discontinued Operations | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Revenue | – | 8,315 | | Gross loss | – | (13,874) | | Other operating expenses | – | (313,333) | | Loss from operations | – | (346,287) | | Gain on disposal of interest in discontinued operations | – | 285,575 | | Loss before tax | – | (63,372) | | Loss for the year from discontinued operations | – | (63,370) | [12 Events After the Reporting Period](index=16&type=section&id=12%20Events%20After%20the%20Reporting%20Period) The Group's shareholders approved the property disposal on August 7, 2025, which was completed on August 8, 2025, with proceeds fully repaying all outstanding bank loans as of June 30, 2025 - The property disposal was completed on August 8, 2025, and the proceeds were fully used to repay all outstanding bank loans as of June 30, 2025[37](index=37&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business operations, including challenges in the film industry and strategic shifts towards integrated entertainment hubs, alongside a detailed financial review covering profit and loss, and financial resources and liquidity [Business Review](index=17&type=section&id=Business%20Review) As a Chinese film and entertainment company, the Group faces challenges from the pandemic, streaming popularity, Hollywood strikes, and wildfires; in response, it is transforming cinemas into integrated entertainment hubs, has terminated all Hong Kong cinema leases, recording non-recurring gains, and continues to focus on the Singapore market as its primary revenue source [Overall Business Overview](index=17&type=section&id=Overall%20Business%20Overview) As a Chinese film and entertainment company, the Group faces challenges from the pandemic, streaming popularity, Hollywood strikes, and wildfires, leading to film supply disruptions and revenue decline, prompting efforts to expand cinemas into integrated entertainment hubs - Established in **1970**, the Group is a world-class Chinese film and entertainment company primarily engaged in film exhibition, film and television program production, and film distribution[38](index=38&type=chunk) - The cinema industry was severely impacted by film supply disruptions caused by the pandemic, the rise of streaming, Hollywood actor and writer strikes, and wildfires in Los Angeles[39](index=39&type=chunk) - Revenue from the Group's continuing operations decreased by **2%** to **HK$362.7 million**, primarily due to a lack of blockbuster films[40](index=40&type=chunk) - The Group is committed to expanding its cinemas from single film viewing services to integrated entertainment hubs offering a variety of lifestyle products[40](index=40&type=chunk) [Hong Kong Cinema Operations](index=17&type=section&id=Hong%20Kong%20Cinema%20Operations) The Group terminated all Hong Kong cinema leases and ceased operations in Hong Kong during the period, resulting in no Hong Kong cinemas as of June 30, 2025, and recording non-recurring gains of **HK$19.1 million** from restoration cost provision reversal and **HK$85.8 million** from lease modifications; despite declining attendance and box office revenue due to industry challenges, the Hong Kong segment reported a profit thanks to significant rental support - The Group has terminated all Hong Kong cinema leases and ceased operating cinemas in Hong Kong, resulting in no Hong Kong cinemas as of June 30, 2025[41](index=41&type=chunk)[45](index=45&type=chunk) - Following lease terminations, the Group recorded non-recurring gains of **HK$19.1 million** (reversal of restoration cost provision) and **HK$85.8 million** (lease modification)[41](index=41&type=chunk) Hong Kong Cinema Operating Data | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Cinemas | 0 | 8 | | Number of Screens | 0 | 33 | | Attendance (Million) | **0.8** | **0.9** | | Net Average Ticket Price (HK$) | **53** | **64** | | Box Office Revenue (HK$ Million) | **43** | **58** | - The Hong Kong film industry experienced declines in attendance and box office revenue due to a scarcity of Hollywood blockbusters, disappointing economic recovery, population outflow, and changing consumer habits[46](index=46&type=chunk) - Despite declining box office revenue, the Hong Kong segment recorded a **HK$3.2 million profit** (2024: **HK$16.4 million loss**), primarily due to significant temporary rental support from landlords[46](index=46&type=chunk) [Singapore Cinema Operations](index=18&type=section&id=Singapore%20Cinema%20Operations) The Singapore market is the Group's primary revenue source, accounting for **79%** of continuing consolidated segment revenue, with **16** cinemas and **122** screens operated by the Group, where Golden Village maintains market leadership; despite reduced attendance, increased average ticket prices and F&B revenue led to slight net box office growth, as Golden Village focuses on transforming cinemas into integrated entertainment centers and diversifying revenue streams - As of June 30, 2025, the Group operated **16** cinemas with a total of **122** screens in Singapore[42](index=42&type=chunk)[43](index=43&type=chunk)[47](index=47&type=chunk) - Singapore accounted for **79%** (2024: **81%**) of the Group's continuing consolidated segment revenue, solidifying its position as a primary revenue source[42](index=42&type=chunk)[47](index=47&type=chunk) Singapore Cinema Operating Data | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Cinemas | 16 | 16 | | Number of Screens | 122 | 122 | | Attendance (Million) | **2.24** | **2.36** | | Net Average Ticket Price (SGD) | **12.8** | **12.1** | | Net Box Office Revenue (SGD Million) | **29** | **29** | - Golden Village's net box office revenue was **SGD28.7 million**, a **0.7% increase** from 2024, primarily due to a **6% rise** in average net ticket price offsetting a **5% decrease** in attendance[48](index=48&type=chunk) - Golden Village's F&B revenue increased by **4%** from **SGD12.4 million in 2024** to **SGD12.9 million in 2025**, with a **10% increase** in spending per customer[48](index=48&type=chunk) - Golden Village is committed to expanding its cinemas from single viewing purposes to integrated entertainment centers offering other lifestyle options, including expanding Gold Class premium cinemas and F&B offerings[49](index=49&type=chunk) - To mitigate the risk of Hollywood blockbuster delays, Golden Village is increasing alternative content, live online streaming, and special film screenings, while diversifying revenue through advance ticket sales, gift cards, merchandise, and e-commerce platforms[50](index=50&type=chunk) [Film and Television Program Distribution and Production](index=21&type=section&id=Film%20and%20Television%20Program%20Distribution%20and%20Production) The Group holds permanent distribution rights for over **140** self-produced films, generating stable licensing revenue, with film distribution and production businesses collectively recording **HK$43.6 million** in revenue, a slight **0.9%** increase; the Group continues to prudently invest in film production and actively collaborates with external studios to redevelop Chinese classic film intellectual properties - The Group's film library holds permanent distribution rights for over **140** self-produced films, generating stable licensing revenue[51](index=51&type=chunk) - Film distribution and production businesses collectively recorded **HK$43.6 million** in revenue, a slight **0.9% increase** compared to the same period last year[51](index=51&type=chunk) - The Group continues to maintain prudent investment decisions in film production and actively collaborates with external studios to redevelop its Chinese classic film library into online films and film-derived art[52](index=52&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) The Group's continuing operations revenue slightly decreased, but gross profit increased due to higher-margin licensing fee income; finance costs significantly reduced due to lower loan balances and interest rates, and an income tax credit was recorded, mainly from deferred tax liability reversal on the Singapore property sale, leading to a turnaround from loss to profit attributable to equity holders, driven by non-recurring gains and reduced impairment losses [Profit or Loss](index=22&type=section&id=Profit%20or%20Loss) The Group's continuing operations revenue slightly decreased by **2%** to **HK$362.7 million**, but gross profit increased by **1%** to **HK$242.9 million** due to higher-margin film licensing fee income; other income significantly increased, mainly from non-recurring gains from cinema lease terminations, while finance costs substantially decreased due to lower loan balances and interest rates; an income tax credit was recorded, primarily from deferred tax liability reversal on the Singapore property sale, leading to a turnaround from loss to profit attributable to equity holders, driven by non-recurring gains and reduced impairment losses - Consolidated revenue from continuing operations decreased by **2%** to **HK$362.7 million**, with total attendance decreasing by **7%**[53](index=53&type=chunk) - Gross profit from continuing operations increased by **1%** to **HK$242.9 million**, primarily due to higher-margin film licensing fee income[53](index=53&type=chunk) - Other income of **HK$114.6 million** primarily includes non-recurring gains of **HK$19.1 million** from restoration cost provision reversal and **HK$85.8 million** from lease modifications[53](index=53&type=chunk) - Finance costs decreased from **HK$14.4 million** to **HK$3.7 million**, mainly due to reduced outstanding loan balances and lower interest rates during the period[54](index=54&type=chunk) - Selling and distribution expenses, along with general and administrative expenses, decreased to **HK$224.5 million** (2024: **HK$240.2 million**), and depreciation expenses decreased to **HK$59.6 million** (2024: **HK$68.8 million**)[54](index=54&type=chunk) - Income tax for continuing operations recorded a **HK$31.6 million credit** (2024: **HK$6.9 million expense**), primarily due to a **HK$32.6 million credit** from the reversal of deferred tax liabilities on the Singapore property disposal[55](index=55&type=chunk) - Profit attributable to equity holders turned from a **HK$81 million loss in 2024** to a **HK$136.7 million profit in 2025**[56](index=56&type=chunk) [Financial Resources and Liquidity](index=23&type=section&id=Financial%20Resources%20and%20Liquidity) The Group maintains a robust financial position with net assets reaching **HK$1,405.4 million**, increased cash and bank balances, and stable net debt; gearing and net gearing ratios remain solid, with proceeds from the Singapore property sale used to repay bank loans, further optimizing the financial structure, and the Group faces low foreign exchange risk with no significant contingent liabilities - As of June 30, 2025, net assets reached **HK$1,405.4 million** (December 31, 2024: **HK$1,169.8 million**)[57](index=57&type=chunk) - Total cash and bank balances amounted to **HK$152.2 million** (December 31, 2024: **HK$133.6 million**)[57](index=57&type=chunk) - Net debt remained at a similar level, from **HK$36.4 million** as of December 31, 2024, to **HK$37.2 million** as of June 30, 2025[57](index=57&type=chunk) - Proceeds from the Singapore property disposal were used to repay all outstanding bank borrowings; the property's carrying amount of **HK$271.4 million** was classified as non-current assets held for sale, and bank loans of **HK$189.4 million** were reclassified as current liabilities[58](index=58&type=chunk) - The gearing ratio remained at **9.0%** (December 31, 2024: **8.0%**), and the net gearing ratio remained at **1.8%** (December 31, 2024: **1.7%**)[59](index=59&type=chunk) - The Group has low foreign exchange risk and no significant contingent liabilities or off-balance sheet debt[60](index=60&type=chunk) [Prospects](index=24&type=section&id=Prospects) Facing high uncertainty in Asian economies, trade barriers, geopolitical instability, and film supply issues, the Group will adopt a cautious approach to future operations and expansion plans, continuing to introduce diversified content and quality services to transform cinemas into integrated entertainment destinations, and prudently seeking synergistic investment opportunities within the region - Asian economies face challenges including high uncertainty in trade prospects, tariffs, rising interest rates, declining consumer confidence, and geopolitical instability[61](index=61&type=chunk) - The Group will adopt a cautious approach to future operations and expansion plans, continuing to introduce diversified content and quality services to transform cinemas into integrated entertainment destinations[62](index=62&type=chunk) - The Group will prudently seek suitable investment opportunities within the region to achieve synergies with existing businesses and create value for shareholders[62](index=62&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section covers employee and remuneration policies, interim dividend decisions, transactions involving listed securities, compliance with the Model Code and Corporate Governance Code, the Audit Committee's role, and publication details for interim results and reports, concluding with an acknowledgement and board member list [Employees and Remuneration Policy](index=24&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed **204** full-time employees, a decrease from **244** as of December 31, 2024; remuneration is primarily determined by industry practice, including salaries, commissions, discretionary bonuses, and share options, and the Group operates a defined contribution retirement benefit scheme - As of June 30, 2025, the Group employed **204** full-time employees (December 31, 2024: **244**)[63](index=63&type=chunk) - Employee remuneration is primarily determined by industry practice, including salaries, commissions, discretionary bonuses, and share options[63](index=63&type=chunk) - The Group operates a defined contribution retirement benefit scheme, with no forfeited contributions arising from employees leaving the scheme during the period[63](index=63&type=chunk) [Interim Dividend](index=24&type=section&id=Interim%20Dividend) The Directors do not recommend the payment of any interim dividend for the period ended June 30, 2025 (June 30, 2024: nil) - The Directors do not recommend the payment of any interim dividend for the period ended June 30, 2025[64](index=64&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=25&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor any of its subsidiaries redeemed, repurchased, or sold any listed securities during the period ended June 30, 2025 - The Company did not redeem any of its listed securities during the period ended June 30, 2025[65](index=65&type=chunk) - Neither the Company nor any of its subsidiaries repurchased or sold any of the Company's listed securities on The Stock Exchange of Hong Kong Limited during the period[65](index=65&type=chunk) [Compliance with the Model Code](index=25&type=section&id=Compliance%20with%20the%20Model%20Code) The Company has adopted a code no less exacting than the Model Code set out in Appendix C3 of the Listing Rules, and all Directors confirm compliance with the Model Code and the Company's code throughout the period ended June 30, 2025 - The Company has adopted a code no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[66](index=66&type=chunk) - All Directors confirm compliance with the Model Code and the Company's code throughout the period ended June 30, 2025[66](index=66&type=chunk) [Compliance with the Corporate Governance Code](index=25&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code provisions during the period, except for rules C.1.6 and F.2.2, as Independent Non-executive Director Ms. Wong Sze Wing and Board Chairman Mr. Ng Kwok Po were unable to attend general meetings due to other commitments - The Company complied with the code provisions of the Corporate Governance Code throughout the period ended June 30, 2025, except for rules C.1.6 and F.2.2[67](index=67&type=chunk) - Independent Non-executive Director Ms. Wong Sze Wing was unable to attend the annual general meeting and extraordinary general meeting due to other work commitments[68](index=68&type=chunk) - The Chairman of the Board, Mr. Ng Kwok Po, was unable to attend the annual general meeting due to other official engagements[68](index=68&type=chunk) [Audit Committee](index=26&type=section&id=Audit%20Committee) The Company has established an Audit Committee responsible for evaluating financial information, reviewing financial and accounting policies, internal controls, and the relationship with external auditors, which has reviewed the internal control system and the financial information for the current period - The Audit Committee is responsible for evaluating matters related to financial information and performing its duties, including reviewing the Company's financial and internal controls, financial and accounting policies and practices, and the relationship with external auditors[69](index=69&type=chunk) - The Audit Committee has reviewed the internal control system and the financial information for the period ended June 30, 2025[69](index=69&type=chunk) [Publication of Interim Results and Interim Report](index=26&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the Company's and the Stock Exchange's websites, and the Company's interim report for the period ended June 30, 2025, will be dispatched to shareholders and published on the same websites in due course - This announcement is published on the websites of the Company and the Stock Exchange[70](index=70&type=chunk) - The Company's interim report for the period ended June 30, 2025, will be dispatched to shareholders and published on the same websites in due course[70](index=70&type=chunk) [Acknowledgement](index=26&type=section&id=Acknowledgement) The Board of Directors expresses gratitude for the efforts and contributions of the Group's management and all employees, and thanks shareholders, customers, and business partners for their trust and support - The Board of Directors acknowledges the efforts and contributions made by the Group's management and all employees, and expresses gratitude for the trust and support from shareholders, customers, and business partners in the Group's development[71](index=71&type=chunk) [Board of Directors](index=26&type=section&id=Board%20of%20Directors) The Company's Board of Directors comprises Mr. Ng Kwok Po, Chairman and Executive Director, three Independent Non-executive Directors (Mr. Leung Man Kit, Ms. Wong Sze Wing, Mr. Fung Chi Man), and four Executive Directors (Ms. Chow Sau Fong, Ms. Go Misaki, Mr. Pang Pok Lun, Ms. Hung Man Yu) - The Company's Board of Directors includes Mr. Ng Kwok Po, Chairman and Executive Director, three Independent Non-executive Directors, and four Executive Directors[73](index=73&type=chunk)

[Announcement Overview](index=1&type=section&id=Announcement_Overview) This announcement is a supplementary report to New Culture Investment Group Limited's 2024 annual report, providing additional details on trade receivables [Purpose and Scope of Announcement](index=1&type=section&id=Purpose_Scope_Announcement) This announcement supplements the annual report of New Culture Investment Group Limited (the Group) for the year ended December 31, 2024, to provide additional information[2](index=2&type=chunk) [Detailed Analysis of Trade Receivables](index=1&type=section&id=Detailed_Analysis_Trade_Receivables) The Group's trade receivables totaled **RMB 167,687 thousand**, with most credit-impaired and individually assessed, primarily involving four companies, and the collectively assessed expected credit loss rate significantly increased from **70.56% in 2023 to 93.97% in 2024** [Details and Impairment of Trade Receivables](index=1&type=section&id=Details_Impairment_Trade_Receivables) During the reporting period, the Group's total trade receivables amounted to RMB 167,687 thousand, with most credit-impaired and individually assessed, primarily involving four companies, indicating significant bad debt risk. The collectively assessed expected credit loss rate significantly increased from 70.56% in 2023 to 93.97% in 2024 [Balances Credit-Impaired and Individually Assessed](index=1&type=section&id=Balances_Credit_Impaired_Individually_Assessed) 2024 Details of Credit-Impaired and Individually Assessed Trade Receivables as of December 31 (RMB Thousand) | Item | RMB Thousand | | :--- | :--- | | Credit-Impaired | 59,215 | | Individually Impaired | 108,472 | | –Company A | 84,659 | | –Company B | 9,213 | | –Company C | 6,800 | | –Company D | 7,800 | | Total Trade Receivables | 167,687 | [Collectively Assessed Balances and Expected Credit Losses](index=2&type=section&id=Collectively_Assessed_Balances_Expected_Credit_Losses) Expected Credit Loss Rates and Gross Carrying Amounts of Trade Receivables (RMB Thousand) | Metric | Less than 1 year | 1 to 2 years | 2 to 3 years | Over 3 years | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **December 31, 2024** | | | | | | | Expected Credit Loss Rate | 51.86% | 71.03% | 62.57% | 100.00% | 93.97% | | Gross Carrying Amount | 295 | 26,240 | 6,313 | 134,839 | 167,687 | | Expected Credit Loss | 153 | 18,637 | 3,950 | 134,839 | 157,579 | | **December 31, 2023** | | | | | | | Expected Credit Loss Rate | 10.23% | 25.12% | 43.21% | 100.00% | 70.56% | | Gross Carrying Amount | 34,640 | 6,663 | 29,513 | 108,689 | 179,505 | | Expected Credit Loss | 3,544 | 1,674 | 12,753 | 108,689 | 126,660 | [Analysis of Reasons for Increased Loss Rates](index=2&type=section&id=Analysis_Reasons_Increased_Loss_Rates) The increase in trade receivables loss rates is primarily due to financial constraints, legal disputes, and liquidation procedures faced by business stakeholders, leading to long-unsettled payments, prompting the Group to make 100% impairment provisions for related receivables, involving Companies A, B, C, and D - Company A: Approximately **RMB 84,216,000** in receivables (related to a 2020 TV series) due to Company A's financial constraints and the Group's lack of direct involvement as an investor in distribution, facing indefinite settlement delays, **100% impairment provision** made[6](index=6&type=chunk) - Company B: Approximately **RMB 3,574,000** in receivables (related to a 2020 TV series) due to Company B being in liquidation since 2024, significantly increasing credit risk, **100% impairment provision** made[6](index=6&type=chunk) - Company C: Approximately **RMB 6,800,000** in receivables (related to a TV series) due to Company C management changes, significantly increasing credit risk, **100% impairment provision** made[8](index=8&type=chunk) - Company D: Approximately **RMB 7,800,000** in receivables (related to a web series) due to Company D's failure to fulfill guaranteed payment agreements and non-payment even after a favorable judgment, significantly increasing credit risk, **100% impairment provision** made[8](index=8&type=chunk) [Methodology and Basis for Impairment Determination](index=4&type=section&id=Methodology_Basis_Impairment_Determination) The Group uses a provision matrix for impairment analysis, deriving provision rates based on aging periods and overdue dates for customer segments, reflecting probability-weighted outcomes, time value of money, and available historical, current, and future economic forecasts, without considering independent valuers - Impairment analysis uses a provision matrix, deriving provision rates based on customer segment aging periods and overdue dates[9](index=9&type=chunk) - Calculations reflect probability-weighted outcomes, time value of money, and reasonable and reliable information regarding past events, current conditions, and forecasts of future economic conditions[9](index=9&type=chunk) - The Group did not consider independent valuers for impairment assessment[10](index=10&type=chunk) [Macro Reasons for Deterioration of Trade Receivables Aging](index=5&type=section&id=Macro_Reasons_Deterioration_Trade_Receivables_Aging) The deterioration in trade receivables aging is primarily attributed to the post-pandemic downturn in the TV series industry, disrupting TV stations' cash flow, limiting financing channels, and consequently affecting business stakeholders' payment ability, exacerbating the Group's receivables delays - Post-pandemic downturn in the TV series industry severely disrupted TV stations' cash flow, limiting their ability to make timely payments[12](index=12&type=chunk) - Widespread economic recession restricted TV stations' financing channels, exacerbating difficulties in timely settlement of receivables[12](index=12&type=chunk) [Risk Management and Recovery Measures](index=4&type=section&id=Risk_Management_Recovery_Measures) The Group has taken measures such as demand letters, negotiating alternative solutions, and initiating legal proceedings to recover receivables. Favorable judgments were obtained against Companies B and D, but enforcement faces challenges; for Companies A and C, negotiation or legal consultation is being considered [Recovery Actions Taken and Progress](index=4&type=section&id=Recovery_Actions_Taken_Progress) The Group has taken measures such as demand letters, negotiating alternative solutions, and initiating legal proceedings to recover receivables. Favorable judgments were obtained against Companies B and D, but enforcement faces challenges; for Companies A and C, negotiation or legal consultation is being considered - The Group has taken measures including: issuing demand letters to business stakeholders, discussing alternative solutions, and initiating legal proceedings[9](index=9&type=chunk) - Company B: Favorable judgment obtained in 2020, but as Company B is in liquidation, the Group will consult lawyers to pursue approximately **RMB 9,213,000** through legal procedures[11](index=11&type=chunk) - Company D: Favorable judgment obtained in November 2024, but Company D lacks funds to fulfill the judgment; the Group is consulting lawyers and initiated enforcement proceedings in May 2025[11](index=11&type=chunk) - Companies A and C: To maintain positive relationships, no legal action has been taken yet, but alternative solutions are being negotiated or legal consultation is being considered[11](index=11&type=chunk) [Due Diligence and Credit Risk Assessment Work](index=5&type=section&id=Due_Diligence_Credit_Risk_Assessment_Work) The Board believes sufficient due diligence and risk assessment were conducted before contracting with business stakeholders, including credit verification, management discussions, industry payment performance analysis, and internal credit assessment, but the significant increase in impairment losses primarily stems from unforeseen external economic recession - The Board believes sufficient due diligence and risk assessment were conducted, including verifying business stakeholders' credit, discussing with management, analyzing industry payment performance, and internal credit assessment[13](index=13&type=chunk)[14](index=14&type=chunk) - The significant increase in impairment losses is primarily due to external factors beyond the Group's control, such as an unforeseen economic recession[13](index=13&type=chunk) - As of December 31, 2024, over **80% of total trade receivables** were overdue for more than three years, indicating these receivables originated from contracts over three years ago[13](index=13&type=chunk) [Subsequent Recovery of Trade Receivables](index=6&type=section&id=Subsequent_Recovery_Trade_Receivables) As of July 31, 2025, approximately RMB 2,428,800 of overdue trade receivables from FY2024 have been successfully recovered - As of July 31, 2025, approximately **RMB 2,428,800** of overdue trade receivables from FY2024 have been recovered[15](index=15&type=chunk) [Other Information](index=6&type=section&id=Other_Information) This section provides details regarding the composition of the Board of Directors as of the announcement date [Board of Directors Information](index=6&type=section&id=Board_of_Directors_Information) As of the announcement date, August 27, 2025, New Culture Investment Group Limited's Board of Directors comprises 6 executive directors, including Chairman and Executive Director Mr. Liu Naiyue, 1 non-executive director, and 4 independent non-executive directors - As of August 27, 2025, the Board includes **6 executive directors** (Mr. Liu Naiyue as Chairman), **1 non-executive director**, and **4 independent non-executive directors**[16](index=16&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（「聯交所」）對本公告的內容概 不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或 任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 上海復旦微電子集團股份有限公司 Shanghai Fudan Microelectronics Group Company Limited* ( 在中華人民共和國註冊成立的股份有限公司 ) (股份編號: 1385) 截至 2025 年 6 月 30 日止之半年度業績公佈 上海復旦微電子集團股份有限公司(「本公司」或「公司」)董事會(「董事會」) 欣然宣佈，本公司及各附屬公司(「本集團」)截至 2025 年 6 月 30 日止半年度之 未經審核綜合業績連同 2024 年同期或於 2024 年 12 月 31 日的比較數字如下： 主要會計數據 | | 截至 6 月 30 日止半年度 | | | | --- | --- | --- | --- | | | 2025 年 | 2024 | 年 | | | 人民幣萬元 | 人民幣萬元 | | | | (未經審核) | (未經審核) | | | 營業收 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported a slight revenue increase, stable net profit, and a decrease in gross profit margin and basic and diluted earnings per share for the first half of 2025, with no interim dividend recommended Key Financial Indicators for H1 2025 (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Year-over-year change (%) | | :--- | :--- | :--- | :--- | | Revenue | 316.2 | 311.6 | 1.5 | | Gross profit | 85.1 | 86.7 | -1.8 | | Gross profit margin | 26.9% | 27.8% | -0.9pp | | Net profit for the period | 38.5 | 38.1 | 1.0 | | Net profit attributable to equity holders of the Company | 38.5 | 38.2 | 0.8 | | Basic and diluted earnings per share | RMB 0.24 | RMB 0.29 | -17.2 | - The Board does not recommend the distribution of any interim dividend for the reporting period[3](index=3&type=chunk) [Performance](index=2&type=section&id=Performance) This section presents the interim condensed consolidated financial statements, including statements of profit or loss, financial position, changes in equity, and cash flows, for the reporting period [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) As of June 30, 2025, the company's revenue slightly increased to RMB 316.2 million, but gross profit and gross profit margin slightly decreased, while profit and total comprehensive income for the period remained stable, and earnings per share declined due to increased share capital Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 316,190 | 311,609 | | Cost of sales | (231,093) | (224,934) | | Gross profit | 85,097 | 86,675 | | Operating profit | 50,949 | 49,871 | | Profit before tax | 52,077 | 50,932 | | Income tax | (13,542) | (12,882) | | Total profit and comprehensive income for the period | 38,535 | 38,050 | | Attributable to equity holders of the Company | 38,537 | 38,177 | | Basic and diluted earnings per share | 0.24 | 0.29 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total non-current and current assets both increased, with a significant rise in prepayments, trade and other receivables, while current liabilities also increased, but net assets maintained stable growth Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025 and December 31, 2024) | Indicator | 2025年6月30日 (RMB thousands) | 2024年12月31日 (RMB thousands) | | :--- | :--- | :--- | | Non-current assets | 62,112 | 59,560 | | Current assets | 869,895 | 836,988 | | Current liabilities | 552,027 | 518,031 | | Net current assets | 317,868 | 318,957 | | Total assets less current liabilities | 379,980 | 378,517 | | Non-current liabilities | 3,724 | 3,999 | | Net assets | 376,256 | 374,518 | | Total equity attributable to equity holders of the Company | 376,250 | 374,513 | - Prepayments, trade and other receivables increased from **RMB 187,013 thousand** as of December 31, 2024, to **RMB 238,958 thousand** as of June 30, 2025[9](index=9&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity increased from RMB 374,518 thousand on January 1, 2025, to RMB 376,256 thousand, primarily driven by profit for the period and non-controlling interest contributions, while dividends approved for the previous year were paid Summary of Changes in Equity (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Balance at January 1 (Total equity) | 374,518 | 255,854 | | Total profit and comprehensive income for the period | 38,535 | 38,050 | | Dividends approved for the previous year | (36,800) | - | | Contributions from non-controlling interests | 3 | 127 | | Balance at June 30 (Total equity) | 376,256 | 376,032 | - In the first half of 2024, the company issued shares through an initial public offering, increasing share capital by **RMB 40,000 thousand** and share premium by **RMB 42,001 thousand**, totaling an **RMB 82,001 thousand** increase in equity[11](index=11&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash generated from operating activities increased, but net cash used in investing activities significantly rose due to payments for time deposits, ultimately leading to a net decrease in cash and cash equivalents Interim Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash generated from operating activities | 30,283 | 28,849 | | Net cash used in investing activities | (63,328) | (921) | | Net cash generated from financing activities | (299) | 107,688 | | Net (decrease)/increase in cash and cash equivalents | (33,344) | 135,616 | | Cash and cash equivalents at June 30 | 321,326 | 346,085 | - Net cash used in investing activities significantly increased to **RMB 63,328 thousand** in the first half of 2025, primarily due to the payment of **RMB 60,000 thousand** for time deposits[13](index=13&type=chunk) [Notes to the Interim Condensed Financial Information](index=9&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Financial%20Information) This section provides detailed notes on the basis of preparation, accounting policy changes, revenue and segment reporting, income tax, earnings per share, and various financial assets and liabilities [Basis of Preparation](index=9&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, authorized for issue on August 27, 2025, and has been reviewed by KPMG but not audited - This interim financial report is prepared in accordance with the HKEX Listing Rules and International Accounting Standard 34 'Interim Financial Reporting'[16](index=16&type=chunk) - The report was authorized for issue on **August 27, 2025**, and has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[16](index=16&type=chunk)[17](index=17&type=chunk) [Changes in Accounting Policies](index=9&type=section&id=Changes%20in%20Accounting%20Policies) The Group has applied amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," which had no significant impact on this interim report due to the absence of foreign currency non-exchangeable transactions - The Group has applied the amendments to International Accounting Standard 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability'[18](index=18&type=chunk) - As the Group did not enter into any foreign currency transactions where one currency is not exchangeable into another, the amendments had no significant impact on this interim report[18](index=18&type=chunk) [Revenue and Segment Reporting](index=10&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's revenue primarily stems from property management, city services, and commercial operation services, with property management and commercial operation services showing growth, while city services revenue decreased, and Changsha Urban Development Group Co., Ltd. remains a key client [Revenue Classification](index=10&type=section&id=Revenue%20Classification) The Group's revenue from contracts with customers is primarily derived from property management, municipal sanitation, lighting system operation, commercial operation, landscaping and engineering, and parking lot services Revenue from Contracts with Customers by Major Service Items (Six Months Ended June 30) | Service Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Property management services | 140,970 | 134,432 | | Municipal sanitation services | 23,288 | 28,589 | | Lighting system operation services | 33,635 | 30,953 | | Commercial operation services | 33,910 | 30,346 | | Landscaping and engineering services | 56,399 | 65,394 | | Parking lot services | 25,183 | 19,855 | | **Total revenue from contracts with customers** | **313,385** | **309,569** | | Sub-leased parking lots (other sources) | 2,805 | 2,040 | | **Total revenue** | **316,190** | **311,609** | [Information on Major Customers](index=11&type=section&id=Information%20on%20Major%20Customers) Changsha Urban Development Group Co., Ltd. and its subsidiaries are the Group's major customers, contributing over 10% of its revenue Revenue Contribution from Major Customers (Six Months Ended June 30) | Customer | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Changsha Urban Development Group Co., Ltd. and its subsidiaries | 113,441 | 117,168 | [Segment Reporting](index=11&type=section&id=Segment%20Reporting) The Group's operations are categorized into three reportable segments: property management, city services, and commercial operation services, with property management and commercial operation services revenue increasing, city services revenue decreasing, and overall gross profit remaining stable Revenue and Gross Profit by Segment (Six Months Ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Gross Profit (RMB thousands) | 2024 Gross Profit (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 147,028 | 134,432 | 26,508 | 27,169 | | City services | 135,252 | 146,831 | 37,440 | 40,134 | | Commercial operation services | 33,910 | 30,346 | 21,149 | 19,372 | | **Total** | **316,190** | **311,609** | **85,097** | **86,675** | - All of the Group's revenue and assets are derived from within mainland China, thus no geographical segment analysis is presented[28](index=28&type=chunk) [Income Tax](index=13&type=section&id=Income%20Tax) The Group's income tax increased from RMB 12.9 million in H1 2024 to RMB 13.5 million in H1 2025, primarily due to higher profit before tax, with some entities benefiting from a preferential 5% tax rate as small-profit enterprises Composition of Income Tax (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – PRC enterprise income tax | 14,623 | 13,449 | | Under/(over) provision in prior years | 199 | (86) | | Deferred tax | (1,280) | (481) | | **Total income tax** | **13,542** | **12,882** | - Entities within the Group in mainland China are subject to a 25% PRC income tax, with some small-profit enterprises enjoying a preferential effective tax rate of **5%**[33](index=33&type=chunk) [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were RMB 0.24, a decrease from RMB 0.29 in the prior year, mainly due to an increase in the weighted average number of ordinary shares in issue Earnings Per Share Calculation (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB thousands) | 38,537 | 38,177 | | Weighted average number of ordinary shares in issue (shares) | 160,000,000 | 129,890,110 | | Basic and diluted earnings per share (RMB) | 0.24 | 0.29 | - There were no dilutive shares for the six months ended June 30, 2025 and 2024[32](index=32&type=chunk) [Prepayments, Trade and Other Receivables](index=14&type=section&id=Prepayments%2C%20Trade%20and%20Other%20Receivables) As of June 30, 2025, trade receivables (net of allowance) increased to RMB 215.0 million, primarily due to higher receivables from related parties and third parties, with all receivables expected to be recovered within one year Prepayments, Trade and Other Receivables (As of June 30, 2025 and December 31, 2024) | Item | 2025年6月30日 (RMB thousands) | 2024年12月31日 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 214,995 | 165,427 | | Other receivables (net of allowance) | 6,669 | 6,225 | | Amounts due from related parties | 6,535 | 6,151 | | Prepayments | 5,976 | 4,349 | | **Total** | **238,958** | **187,013** | Ageing Analysis of Trade Receivables (Net of Loss Allowance) | Ageing | 2025年6月30日 (RMB thousands) | 2024年12月31日 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 148,028 | 123,907 | | 1 to 2 years | 63,646 | 39,116 | | Over 2 years | 3,321 | 2,404 | | **Total** | **214,995** | **165,427** | [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to RMB 518.1 million, mainly due to a significant rise in receipts on behalf of property owners and tenants, while trade payables slightly decreased Trade and Other Payables (As of June 30, 2025 and December 31, 2024) | Item | 2025年6月30日 (RMB thousands) | 2024年12月31日 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 308,271 | 328,131 | | Amounts due to related parties | 7,187 | 4,009 | | Accrued salaries and other benefits | 23,318 | 29,384 | | Receipts on behalf of property owners and tenants | 52,177 | 17,390 | | Dividends payable | 36,800 | – | | **Total** | **518,100** | **480,002** | Ageing Analysis of Trade Payables | Ageing | 2025年6月30日 (RMB thousands) | 2024年12月31日 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 245,014 | 279,148 | | 1 to 2 years | 47,059 | 40,094 | | Over 2 years | 16,198 | 8,889 | | **Total** | **308,271** | **328,131** | [Capital, Reserves and Dividends](index=16&type=section&id=Capital%2C%20Reserves%20and%20Dividends) The Board does not recommend any interim dividend for the reporting period, and the company settled the final dividend of RMB 36.8 million for the previous financial year in July 2025 - The Board does not recommend the distribution of any interim dividend for the reporting period[37](index=37&type=chunk) - In **July 2025**, the company settled the final dividend of **RMB 36,800 thousand** (RMB 0.23 per share) for the previous financial year[37](index=37&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, future outlook, and financial review for the reporting period, including details on revenue, costs, and financial position [Business Review](index=17&type=section&id=Business%20Review) The Group, a state-owned urban services and operations provider deeply rooted in Hunan Province, listed on the HKEX in May 2024, offering property management, city services, and commercial operation services, and ranked 42nd among the Top 100 Property Service Enterprises in China in 2025 [Project Portfolio](index=18&type=section&id=Project%20Portfolio) As of June 30, 2025, the Group managed a total of 330 projects with a gross floor area of approximately 12.4 million square meters, showing an increase compared to the previous year Project Portfolio (As of June 30) | Operating Segment | 2025 Number of Projects | 2025 Gross Floor Area Under Management (million sq.m.) | 2024 Number of Projects | 2024 Gross Floor Area Under Management (million sq.m.) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 73 | 11.6 | 84 | 10.9 | | City services | 200 | – | 160 | – | | Commercial operation services | 57 | 0.8 | 54 | 0.8 | | **Total** | **330** | **12.4** | **298** | **11.7** | - City service projects are not calculated by gross floor area under management, and landscaping and engineering projects are one-off in nature[43](index=43&type=chunk) [Property Management Services](index=18&type=section&id=Property%20Management%20Services) Property management services revenue grew by 9.4% to RMB 147.0 million, accounting for approximately 46.5% of total revenue, driven by an increase in gross floor area under management, project numbers, and enhanced market expansion efforts - Revenue from property management services was approximately **RMB 147.0 million**, representing a year-on-year increase of approximately **9.4%**[42](index=42&type=chunk) - Gross floor area under management was approximately **11.6 million square meters**, a year-on-year increase of **6.4%**, with the number of projects increasing to **84**[44](index=44&type=chunk) - The growth was primarily attributable to leveraging Chengtou Group's business resources and actively expanding into independent third-party clients[44](index=44&type=chunk) [City Services](index=19&type=section&id=City%20Services) City services revenue was approximately RMB 135.3 million, a decrease of approximately 7.9% year-on-year, accounting for about 42.8% of total revenue, mainly due to a reduction in landscaping and engineering projects affected by local government debt resolution and slower infrastructure investment growth - Revenue from city services was approximately **RMB 135.3 million**, representing a year-on-year decrease of approximately **7.9%**[46](index=46&type=chunk) - The decrease in revenue was primarily attributable to a reduction in landscaping and engineering projects, affected by local government debt resolution and a slowdown in infrastructure investment growth, leading to an overall market contraction[46](index=46&type=chunk) [Commercial Operation Services](index=20&type=section&id=Commercial%20Operation%20Services) Commercial operation services revenue increased by 11.7% to RMB 33.9 million, representing approximately 10.7% of total revenue, with the number of commercial properties under management at 54 and a stable gross floor area of approximately 0.8 million square meters - Revenue from commercial operation services increased by **11.7%** to **RMB 33.9 million**[47](index=47&type=chunk) - As of **June 30, 2025**, services were provided to **54 commercial properties**, with a total gross floor area under management of approximately **0.8 million square meters**, remaining stable compared to the same period last year[47](index=47&type=chunk) [Future Outlook](index=20&type=section&id=Future%20Outlook) The Group plans to consolidate its position in Hunan Province, expand its business scale through M&A and leveraging Chengtou Group's resources, enhance brand awareness, service quality, and customer satisfaction, and continue investing in technology for digitalization and automation [Consolidate position in Hunan Province, continuously expand business scale through multiple channels](index=20&type=section&id=Consolidate%20position%20in%20Hunan%20Province%2C%20expand%20business%20scale) The Group plans to expand its business scale through various methods such as mergers and acquisitions and equity investments, continue to leverage Chengtou Group's project reserves, actively pursue its future development projects, and collaborate with independent third parties to enhance business expansion capabilities - Expand business scale through various methods such as mergers and acquisitions and equity investments, and improve the selection process for M&A targets[49](index=49&type=chunk) - Continue to leverage Chengtou Group's project reserves and actively seek projects to be developed by Chengtou Group and its associates in the future[49](index=49&type=chunk) - Enhance business expansion capabilities through cooperation with independent third-party property developers and other clients[49](index=49&type=chunk) [Continuously enhance the Group's brand awareness, service quality, and customer satisfaction](index=21&type=section&id=Continuously%20enhance%20the%20Group%27s%20brand%20awareness%2C%20service%20quality%2C%20and%20customer%20satisfaction) The Group will focus on customer satisfaction, continuously improve service quality, provide more detailed, comprehensive, attentive, and efficient property and value-added services to diverse clients, and collaborate with local governments to expand city service projects - Focus on customer satisfaction, continuously improve service quality, and provide more detailed, comprehensive, attentive, and efficient property and value-added services[50](index=50&type=chunk) - Leverage Chengtou Group's advantages to actively expand business scope, undertake more projects, and collaborate with local governments to increase output value by focusing on city services[50](index=50&type=chunk) [Continue to invest in technology, further enhance the Group's technological strength, and improve its digitalization and automation](index=21&type=section&id=Invest%20in%20technology%2C%20enhance%20digitalization%2C%20automation) The Group will continue to develop and optimize internal management information system functions, focusing on online management of labor-intensive tasks, contracts, finance, and assets, and improve various business operating systems to achieve data linkage and information resource sharing - Continue to develop and optimize internal management information system functions, focusing on online management of labor-intensive tasks, contracts, finance, and assets[51](index=51&type=chunk) - Develop and improve various business operating systems to achieve functional development, data linkage, and information resource sharing[51](index=51&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) The Group's revenue remained stable during the reporting period, with growth in property management and commercial operation services, a decrease in city services revenue, and a slight decline in gross profit margin due to increased cost of sales and expected credit losses, while cash and cash equivalents decreased due to investing activities [Revenue](index=21&type=section&id=Revenue) Total revenue remained relatively stable, with property management services revenue increasing by 9.4% to RMB 147.0 million, commercial operation services revenue growing by 11.7% to RMB 33.9 million, and city services revenue decreasing by 7.9% to RMB 135.3 million Segment Revenue Changes (Six Months Ended June 30) | Segment | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 147.0 | 134.4 | 9.4 | | City services | 135.3 | 146.8 | -7.9 | | Commercial operation services | 33.9 | 30.3 | 11.7 | | **Total revenue** | **316.2** | **311.6** | **1.5** | - The increase in property management services revenue was primarily due to an increase in gross floor area under management and the number of projects[52](index=52&type=chunk) - The decrease in city services revenue was primarily due to a reduction in landscaping and engineering projects, affected by local government debt resolution and a slowdown in infrastructure investment growth[52](index=52&type=chunk) [Cost of Sales](index=22&type=section&id=Cost%20of%20Sales) Cost of sales increased by 2.7% from RMB 224.9 million to RMB 231.1 million, mainly due to revenue growth and increased service costs in certain property management segments Cost of Sales Changes (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 231.1 | 224.9 | 2.7 | - The increase in cost of sales was primarily due to higher costs resulting from revenue growth, and increased service costs in certain property management segments where sales centers were converted to residential projects after delivery[54](index=54&type=chunk) [Gross Profit and Gross Profit Margin](index=22&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's overall gross profit margin slightly decreased from 27.8% to 26.9%, influenced by the aforementioned changes in revenue and cost of sales Gross Profit and Gross Profit Margin Changes (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 85.1 | 86.7 | -1.8 | | Gross profit margin | 26.9% | 27.8% | -0.9pp | [Net Other Income](index=22&type=section&id=Net%20Other%20Income) Net other income decreased by 80.1% to RMB 0.1 million, primarily due to a reduction in non-recurring government subsidies and exchange gains Net Other Income Changes (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net other income | 0.1 | 0.6 | -80.1 | - The decrease was primarily due to a reduction in non-recurring government subsidies and exchange gains[56](index=56&type=chunk) [Selling Expenses](index=22&type=section&id=Selling%20Expenses) Selling expenses decreased by 36.1% to RMB 1.5 million, mainly due to reduced marketing expenses as projects entered a stable operational phase Selling Expenses Changes (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 1.5 | 2.4 | -36.1 | - The decrease was primarily due to reduced marketing expenses as projects entered a stable operational phase[57](index=57&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 10.5% to RMB 28.2 million, primarily due to increased expenses related to listing activities in the previous year Administrative Expenses Changes (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 28.2 | 31.5 | -10.5 | - The decrease was primarily due to increased expenses related to listing activities in the previous year[58](index=58&type=chunk) [Expected Credit Losses](index=23&type=section&id=Expected%20Credit%20Losses) Expected credit losses increased by 30.5% to RMB 4.5 million, primarily due to the ageing of certain trade receivables and contract assets Expected Credit Losses Changes (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Expected credit losses | 4.5 | 3.4 | 30.5 | - The increase was primarily due to the ageing of certain trade receivables and contract assets[59](index=59&type=chunk) [Finance Income](index=23&type=section&id=Finance%20Income) Finance income increased by 14.6% to RMB 1.0 million, primarily due to an increase in bank balances Finance Income Changes (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Finance income | 1.0 | 0.9 | 14.6 | - The increase was primarily due to higher finance income resulting from increased bank balances[60](index=60&type=chunk) [Share of profits less losses of associates and joint ventures](index=23&type=section&id=Share%20of%20profits%20less%20losses%20of%20associates%20and%20joint%20ventures) Share of profits less losses of associates and joint ventures remained relatively stable at RMB 0.2 million for both periods Share of Profits Less Losses of Associates and Joint Ventures (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Share of profits less losses of associates and joint ventures | 0.2 | 0.2 | [Income Tax](index=23&type=section&id=Income%20Tax) Income tax increased by 5.1% to RMB 13.5 million, primarily due to an increase in profit before tax Income Tax Changes (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Income tax | 13.5 | 12.9 | 5.1 | - The increase was primarily due to higher profit before tax[62](index=62&type=chunk) [Total Profit and Comprehensive Income for the Period](index=23&type=section&id=Total%20Profit%20and%20Comprehensive%20Income%20for%20the%20Period) Total profit and comprehensive income for the period remained relatively stable at RMB 38.5 million and RMB 38.1 million, respectively Total Profit and Comprehensive Income for the Period (Six Months Ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Total profit and comprehensive income for the period | 38.5 | 38.1 | [Inventories](index=23&type=section&id=Inventories) Inventories remained relatively stable at approximately RMB 3.5 million Inventories (As of June 30, 2025 and December 31, 2024) | Indicator | 2025年6月30日 (RMB millions) | 2024年12月31日 (RMB millions) | | :--- | :--- | :--- | | Inventories | 3.5 | 3.7 | [Contract Assets](index=23&type=section&id=Contract%20Assets) Contract assets decreased to RMB 242.9 million, primarily due to the settlement and recognition of certain contract assets Contract Assets (As of June 30, 2025 and December 31, 2024) | Indicator | 2025年6月30日 (RMB millions) | 2024年12月31日 (RMB millions) | | :--- | :--- | :--- | | Contract assets | 242.9 | 286.3 | - The decrease was primarily due to the settlement and recognition of certain contract assets[65](index=65&type=chunk) [Trade Receivables](index=24&type=section&id=Trade%20Receivables) Trade receivables increased by 30.0% to RMB 215.0 million, primarily due to the settlement of certain contract assets converted to trade receivables and the ageing of certain trade receivables Trade Receivables (As of June 30, 2025 and December 31, 2024) | Indicator | 2025年6月30日 (RMB millions) | 2024年12月31日 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 215.0 | 165.4 | 30.0 | - The increase was primarily due to the settlement of certain contract assets converted to trade receivables and the ageing of certain trade receivables[66](index=66&type=chunk) [Other Receivables](index=24&type=section&id=Other%20Receivables) Other receivables increased by 7.1% to RMB 6.7 million, primarily due to an increase in deposits and guarantees Other Receivables (As of June 30, 2025 and December 31, 2024) | Indicator | 2025年6月30日 (RMB millions) | 2024年12月31日 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other receivables | 6.7 | 6.2 | 7.1 | - The increase was primarily due to an increase in deposits and guarantees[67](index=67&type=chunk) [Trade Payables](index=24&type=section&id=Trade%20Payables) Trade payables decreased by 6.1% to RMB 308.3 million, primarily due to payments made by the Group for trade payables Trade Payables (As of June 30, 2025 and December 31, 2024) | Indicator | 2025年6月30日 (RMB millions) | 2024年12月31日 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 308.3 | 328.1 | -6.1 | - The decrease was primarily due to payments made by the Group for trade payables[68](index=68&type=chunk) [Property, Plant and Equipment](index=24&type=section&id=Property%2C%20Plant%20and%20Equipment) The carrying value of property, plant and equipment remained relatively stable at approximately RMB 17.3 million Property, Plant and Equipment (As of June 30, 2025 and December 31, 2024) | Indicator | 2025年6月30日 (RMB millions) | 2024年12月31日 (RMB millions) | | :--- | :--- | :--- | | Property, plant and equipment | 17.3 | 17.3 | [Liquidity and Capital Resources and Current Assets](index=25&type=section&id=Liquidity%20and%20Capital%20Resources%20and%20Current%20Assets) The Group maintained sound liquidity with no outstanding borrowings or bank facilities as of June 30, 2025, while cash and cash equivalents decreased by 9.4% to RMB 321.3 million, primarily due to net cash used in investing activities - As of **June 30, 2025**, the Group had no outstanding borrowings or bank facilities[70](index=70&type=chunk) Changes in Cash and Cash Equivalents | Indicator | 2025年6月30日 (RMB millions) | 2024年12月31日 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 321.3 | 354.7 | -9.4 | - The decrease in cash was primarily attributable to net cash used in investing activities of **RMB 63.3 million**, which included **RMB 60.0 million** for time deposits[71](index=71&type=chunk) [Foreign Currency Risk](index=25&type=section&id=Foreign%20Currency%20Risk) The Group's primary activities are in China, and it does not face significant foreign exchange fluctuation risks, except for HKD-denominated proceeds from its listing, and it will continue to monitor and mitigate foreign exchange risks without using hedging instruments during the reporting period - The Group's primary activities are conducted in China, and it does not face any significant risks directly related to foreign exchange fluctuations, except for certain net proceeds from its listing denominated in HKD[72](index=72&type=chunk) - The Group will continue to monitor its foreign exchange risk and take prudent measures to mitigate it, with no financial instruments used for hedging purposes during the reporting period[72](index=72&type=chunk) [Capital Commitments and Capital Expenditures](index=25&type=section&id=Capital%20Commitments%20and%20Capital%20Expenditures) The Group primarily has capital commitments for contributions to associates and joint ventures, with capital expenditures contracted but not yet incurred amounting to approximately RMB 6.5 million as of June 30, 2025 Capital Expenditures (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 4,287 | 1,836 | - As of **June 30, 2025**, capital expenditures contracted but not yet incurred amounted to approximately **RMB 6.5 million**[73](index=73&type=chunk) [Contingent Liabilities](index=26&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[76](index=76&type=chunk) [Pledged Assets](index=26&type=section&id=Pledged%20Assets) As of June 30, 2025, none of the Group's assets were pledged - As of **June 30, 2025**, none of the Group's assets were pledged[77](index=77&type=chunk) [Use of Proceeds from Global Offering](index=26&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company listed in May 2024, with net proceeds from the global offering of approximately HKD 86.4 million, most of which remained unutilized at the end of the reporting period and will be used as planned in the prospectus for strategic acquisitions, vehicle and equipment procurement, technology investments, talent training, and working capital - The net proceeds from the global offering were approximately **HKD 86.4 million**[78](index=78&type=chunk) Use and Application of Proceeds from Global Offering (As of June 30, 2025) | Use | Planned Allocation (HKD millions) | Unutilized as of December 31, 2024 (HKD millions) | Utilized during Reporting Period (HKD millions) | Unutilized as of June 30, 2025 (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Strategic acquisitions | 25.2 | 25.2 | – | 25.2 | | Procurement of municipal sanitation service vehicles | 17.1 | 17.1 | – | 17.1 | | Procurement of lighting system operation service vehicles and equipment | 1.0 | 1.0 | – | 1.0 | | Technology investments (development and optimization of internal management information system) | 7.4 | 5.1 | – | 5.3 | | Technology investments (development and improvement of business operating systems) | 6.4 | 6.4 | – | 6.4 | | Technology investments (development of equipment connection system) | 7.4 | 7.4 | – | 7.4 | | Technology investments (recruitment of software development and maintenance engineers) | 0.7 | 0.7 | – | 0.7 | | Talent training and retention (expansion of dedicated team) | 11.8 | 11.8 | 0.6 | 11.2 | | Talent training and retention (optimization of talent development plan) | 1.4 | 1.4 | – | 1.4 | | Working capital | 8.0 | 8.0 | 8.0 | – | | **Total** | **86.4** | **84.1** | **8.6** | **75.7** | - There were no significant changes in the actual use of net proceeds compared to the proposed use[80](index=80&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 547 employees with total staff costs of RMB 49.4 million, and its remuneration policy is determined based on market levels, industry standards, inflation, operating performance, and employee performance, alongside continuous learning and training programs Employee and Remuneration Information (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total number of employees | 547 | - | | Total staff costs (RMB millions) | 49.4 | 48.4 | - The remuneration policy is determined based on factors such as local market remuneration levels, industry standards, inflation, corporate operating performance, and employee performance[81](index=81&type=chunk) - The Group provides continuous learning and training programs for employees to enhance their skills and knowledge, and has not encountered significant recruitment difficulties or staff turnover[82](index=82&type=chunk) [Compliance with Laws and Regulations](index=28&type=section&id=Compliance%20with%20Laws%20and%20Regulations) During the reporting period, the Group complied with all relevant laws and regulations applicable in Hong Kong and China - During the reporting period, the Group complied with all applicable laws and regulations in Hong Kong and China that would have a significant impact on the Group[83](index=83&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company has adopted and complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 Part 2 of the HKEX Listing Rules during the reporting period - The company has adopted the Corporate Governance Code as set out in Appendix C1 Part 2 of the HKEX Listing Rules and complied with all applicable code provisions during the reporting period[84](index=84&type=chunk) [Compliance with Model Code for Securities Transactions](index=29&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and all directors and supervisors confirmed compliance during the reporting period, with no non-compliance by senior management - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[85](index=85&type=chunk) - All directors and supervisors have confirmed their compliance with the Model Code during the reporting period, and the company is not aware of any non-compliance by senior management[85](index=85&type=chunk) [Compliance with Equity Entrustment Agreements](index=29&type=section&id=Compliance%20with%20Equity%20Entrustment%20Agreements) To avoid potential competition, the company entered into equity entrustment agreements with Changsha Xingshui and its shareholder Zhongnan Huayun, as well as Gas Group and Hunan Changran, with the relevant entities confirming compliance for the year ended December 31, 2024 - The company has entered into an equity entrustment agreement with Changsha Xingshui and its sole shareholder Zhongnan Huayun, entrusting the company to manage and operate Changsha Xingshui and committing to resolve competition issues[86](index=86&type=chunk) - The company also entered into an equity entrustment agreement with Gas Group and Hunan Changran, entrusting the company to manage and operate Hunan Changran and committing to resolve competition issues[86](index=86&type=chunk) - Zhongnan Huayun, Changsha Xingshui, Hunan Changran, and Gas Group have confirmed their respective compliance with the relevant equity entrustment agreements[87](index=87&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&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, and as of June 30, 2025, the company held no treasury shares - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[88](index=88&type=chunk) - As of **June 30, 2025**, the company held no treasury shares[88](index=88&type=chunk) [Interim Dividend](index=30&type=section&id=Interim%20Dividend) The Board does not recommend the distribution of any interim dividend for the reporting period - The Board does not recommend the distribution of any interim dividend for the reporting period[89](index=89&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's unaudited interim results and this announcement, agreeing with the accounting treatments adopted by the company and confirming that the interim financial results comply with relevant accounting standards, rules, and regulations, with appropriate disclosures made - The Audit Committee has reviewed the Group's unaudited interim results and this announcement, and agreed with the accounting treatments adopted by the company[90](index=90&type=chunk) - The Audit Committee is of the opinion that the interim financial results for the six months ended **June 30, 2025**, comply with relevant accounting standards, rules, and regulations, and appropriate disclosures have been made[90](index=90&type=chunk) [Review of Interim Results](index=30&type=section&id=Review%20of%20Interim%20Results) The condensed interim financial statements are unaudited but have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 - The condensed interim financial statements are unaudited but have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[91](index=91&type=chunk) [Events After the Reporting Period](index=31&type=section&id=Events%20After%20the%20Reporting%20Period) From June 30, 2025, to the date of this announcement, the company is not aware of any significant post-reporting period events that would materially affect the Group's operations and financial performance and require disclosure - From **June 30, 2025**, to the date of this announcement, the company is not aware of any significant post-reporting period events that would materially affect the Group's operations and financial performance and require disclosure[92](index=92&type=chunk) [Publication of Interim Results Announcement and 2025 Interim Report on the Websites of The Stock Exchange of Hong Kong Limited and the Company](index=31&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%202025%20Interim%20Report%20on%20the%20Websites%20of%20The%20Stock%20Exchange%20of%20Hong%20Kong%20Limited%20and%20the%20Company) This interim results announcement has been published on the HKEX website and the company's website, and the 2025 interim report will be dispatched to shareholders and published on the respective websites in due course - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.hollwingroup.com)[93](index=93&type=chunk) - The 2025 interim report will be dispatched to the company's shareholders in due course, in accordance with their chosen method of receiving corporate communications, and will be published on the respective websites of the HKEX and the company[93](index=93&type=chunk) [By Order of the Board](index=31&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Xie Yi, Chairman and Executive Director of Hongying Urban Operation Services Group Co., Ltd., on behalf of the Board, and lists the Board members as of the announcement date - This announcement is issued by Mr. Xie Yi, Chairman and Executive Director of Hongying Urban Operation Services Group Co., Ltd., on behalf of the Board[94](index=94&type=chunk) - As of the date of this announcement, the Board members include Executive Directors Mr. Xie Yi, Mr. Yang Xin, Mr. Duan Wenming, and Mr. Wang Guofu; Non-executive Director Mr. Yu Xiao; and Independent Non-executive Directors Ms. Chen Jiali, Dr. Dai Xiaofeng, and Mr. Xie Zhiwei[95](index=95&type=chunk)

2025 Interim Results Announcement [Company and Report Overview](index=1&type=section&id=Company%20and%20Report%20Overview) Bison Financial Group Limited (Stock Code: 888) released its unaudited interim results for the six months ended June 30, 2025, primarily engaged in financial services - The company primarily engages in financial services and has released its unaudited condensed consolidated financial information for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section outlines Bison Financial Group's condensed consolidated statement of profit or loss and other comprehensive income and statement of financial position for the six months ended June 30, 2025, showing decreased revenue, expanded losses, and a significant reduction in net assets [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by 38.5% year-on-year to HK$14,350 thousand, with losses expanding to HK$28,198 thousand and basic and diluted loss per share at HK$1.98 cents Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 14,350 | 23,322 | -38.5% | | Other income and other net (losses)/gains | (8,191) | 5,700 | -243.7% | | Loss before tax | (28,198) | (9,577) | 194.4% | | Loss and total comprehensive loss for the period | (28,198) | (9,573) | 194.6% | | Basic and diluted loss per share attributable to owners of the parent | (1.98) HK Cents | (0.67) HK Cents | 195.5% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net current assets significantly decreased, with net assets falling from HK$31,473 thousand on December 31, 2024, to HK$3,275 thousand Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 879 | 2,796 | -68.6% | | Total current assets | 118,460 | 150,759 | -21.4% | | Total current liabilities | 115,973 | 121,348 | -4.4% | | Net current assets | 2,487 | 29,411 | -91.5% | | Net assets | 3,275 | 31,473 | -89.6% | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering company information, accounting policies, operating segments, revenue composition, expense and asset/liability changes, and subsidiary disposals and commitments [1. Company Information](index=5&type=section&id=1.%20Company%20Information) Bison Financial Group Limited is incorporated in Bermuda with its principal place of business in Hong Kong, primarily engaged in financial services; its controlling interest was subject to receivership due to default but remained unchanged as of the announcement date - The company primarily engages in financial services, with its direct holding company being Joyful Global Limited and its ultimate holding company being Bison Capital Financial Holdings Limited[6](index=6&type=chunk) - Receivers were appointed due to a share charge default, but they were unable to find potential buyers, and the controlling interest remained unchanged as of the announcement date[7](index=7&type=chunk)[8](index=8&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) This interim condensed consolidated financial information is unaudited but prepared in compliance 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 - The financial information is unaudited and complies with the Listing Rules and HKAS 34 requirements[9](index=9&type=chunk) [3. Changes in Accounting Policies and Disclosures](index=6&type=section&id=3.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The accounting policies applied in preparing the interim financial information are consistent with the previous year, with only the initial adoption of amendments to HKAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," which had no significant impact on the financial information - Adoption of HKAS 21 amendments had no significant financial impact on the financial information[10](index=10&type=chunk)[11](index=11&type=chunk) [4. Operating Segment Information](index=6&type=section&id=4.%20Operating%20Segment%20Information) The Group operates solely in a single financial services segment, including investment advisory, institutional finance advisory, securities services, external asset management, and fund management, thus no segment information is presented - The company operates only a single financial services segment, encompassing various licensed businesses, hence no segment information is presented[12](index=12&type=chunk) [5. Revenue](index=6&type=section&id=5.%20Revenue) For the six months ended June 30, 2025, total revenue was HK$14,350 thousand, a 38.5% decrease from HK$23,322 thousand in the prior year, primarily driven by customer contracts, with a significant decline in external asset management advisory commission income and an increase in fund management services income Revenue Analysis | Revenue Source | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue from contracts with customers | 14,350 | 23,085 | -37.8% | | Interest income from loans receivable | – | 237 | -100.0% | | **Total** | **14,350** | **23,322** | **-38.5%** | Breakdown of Revenue from Contracts with Customers | Service Type | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Fund management services income | 6,232 | 4,181 | 49.0% | | External asset management advisory commission income | 8,096 | 18,582 | -56.5% | | Financial advisory and consulting fee income | – | 300 | -100.0% | | Others | 22 | 22 | 0.0% | [6. Other Income and Other Net (Losses)/Gains](index=7&type=section&id=6.%20Other%20Income%20and%20Other%20Net%20(Losses)%2FGains) For the six months ended June 30, 2025, other income and other net (losses)/gains amounted to a loss of HK$8,191 thousand, compared to a gain of HK$5,700 thousand in the prior period, primarily due to an unrealized loss of HK$11,580 thousand from financial assets at fair value through profit or loss (private equity fund investments) Analysis of Other Income and Other Net (Losses)/Gains | Indicator | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | YoY Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Total other income | 57 | 276 | -219 | | Net exchange gains | 3,332 | 345 | 2,987 | | Net unrealized (losses)/gains on financial assets at fair value through profit or loss | (11,580) | 4,879 | -16,459 | | **Net total other income and other (losses)/gains** | **(8,191)** | **5,700** | **-13,891** | [7. Loss Before Tax](index=8&type=section&id=7.%20Loss%20Before%20Tax) For the six months ended June 30, 2025, loss before tax significantly increased to HK$28,198 thousand from HK$9,577 thousand in the prior period, mainly impacted by a net reversal of impairment losses on financial assets (HK$6,980 thousand) and increased employee benefit expenses Components of Loss Before Tax | Indicator | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | YoY Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Total depreciation | 776 | 723 | 53 | | Net (reversal of)/provision for impairment losses on financial assets | (6,980) | (3,923) | -3,057 | | Total employee benefit expenses | 10,730 | 7,570 | 3,160 | [8. Other Operating Expenses, Net](index=9&type=section&id=8.%20Other%20Operating%20Expenses,%20Net) For the six months ended June 30, 2025, other operating expenses, net, increased significantly to HK$9,188 thousand from HK$4,589 thousand in the prior period, primarily due to substantial increases in consulting fees, short-term lease expenses, travel and entertainment expenses, and miscellaneous expenses Analysis of Other Operating Expenses, Net | Expense Category | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | YoY Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Consulting fees | 2,588 | 110 | 2,478 | | Lease expenses for short-term leases | 1,133 | – | 1,133 | | Travel and entertainment expenses | 648 | 182 | 466 | | Miscellaneous expenses | 2,005 | 736 | 1,269 | | **Total** | **9,188** | **4,589** | **4,599** | [9. Finance Costs](index=9&type=section&id=9.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs slightly decreased to HK$4,490 thousand from HK$4,648 thousand in the prior period, primarily consisting of interest on bills payable Analysis of Finance Costs | Finance Cost Category | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | YoY Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 27 | 160 | -133 | | Interest on bills payable | 4,463 | 4,488 | -25 | | **Total** | **4,490** | **4,648** | **-158** | [10. Income Tax Credit](index=9&type=section&id=10.%20Income%20Tax%20Credit) The Group is not subject to income tax in Bermuda, the Cayman Islands, and the British Virgin Islands, while Hong Kong profits tax is calculated at 16.5% (partially at 8.25%); there was no income tax credit for the current period, compared to an over-provision of HK$4 thousand for prior years in the previous period - There was no income tax credit for the current period, while the prior period had an over-provision of **HK$4 thousand** for prior years[20](index=20&type=chunk)[22](index=22&type=chunk) [11. Dividends](index=10&type=section&id=11.%20Dividends) For the six months ended June 30, 2025, the company did not declare any interim dividends, nor did it approve or pay any final dividends for the year 2024 - No interim dividends were declared for the six months ended June 30, 2025[23](index=23&type=chunk) [12. Loss Per Share Attributable to Owners of the Parent](index=10&type=section&id=12.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the parent significantly increased to HK$1.98 cents from HK$0.67 cents in the prior period, primarily due to expanded losses Loss Per Share Analysis | Indicator | June 30, 2025 | June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the parent | HK$28,198,000 | HK$9,572,000 | 194.6% | | Basic and diluted loss per share | (1.98) HK Cents | (0.67) HK Cents | 195.5% | | Weighted average number of ordinary shares in issue | 1,421,838,398 shares | 1,421,838,398 shares | 0.0% | [13. Property and Equipment and Right-of-Use Assets](index=10&type=section&id=13.%20Property%20and%20Equipment%20and%20Right-of-Use%20Assets) For the six months ended June 30, 2024, new right-of-use assets of HK$817 thousand were added, and assets with a net book value of zero were disposed of, generating a gain of HK$200 thousand - For the six months ended June 30, 2024, new right-of-use assets of **HK$817 thousand** were added[25](index=25&type=chunk) - For the six months ended June 30, 2024, assets with a net book value of zero were disposed of, generating a gain of **HK$200 thousand**[25](index=25&type=chunk) [14. Financial Assets at Fair Value Through Profit or Loss](index=10&type=section&id=14.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial assets at fair value through profit or loss (primarily private equity fund investments) significantly decreased to HK$3,903 thousand, a 79.2% decline from HK$18,733 thousand on December 31, 2024, mainly due to a decrease in the fair value of investment funds and withdrawal of capital contributions Financial Assets at Fair Value Through Profit or Loss | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Private equity funds measured at fair value | 3,903 | 18,733 | -79.2% | - As of June 30, 2025, the Group's capital contribution to the investment fund was **HK$40,600 thousand**, representing **100%** of the total capital contribution to the investment fund, a decrease from **HK$43,900 thousand** (59%) on December 31, 2024, primarily due to withdrawal of capital contributions[27](index=27&type=chunk)[28](index=28&type=chunk)[58](index=58&type=chunk) - The investment fund's related investment, a metaverse bond, was assessed to have a fair value of zero as of June 30, 2025, resulting in the recognition of an unrealized loss of approximately **HK$11,580 thousand**[30](index=30&type=chunk)[31](index=31&type=chunk)[61](index=61&type=chunk) [15. Trade Receivables](index=12&type=section&id=15.%20Trade%20Receivables) As of June 30, 2025, total trade receivables were HK$7,433 thousand, a 45.8% decrease from HK$13,710 thousand on December 31, 2024, with receivables overdue for more than one year accounting for the largest proportion Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 month | 2,242 | 4,382 | -48.8% | | Over 1 year | 4,474 | 9,036 | -50.5% | | **Total** | **7,433** | **13,710** | **-45.8%** | - The company typically grants existing customers a **90-day** credit period and implements credit control policies to mitigate risks[33](index=33&type=chunk) [16. Loans Receivable](index=13&type=section&id=16.%20Loans%20Receivable) As of June 30, 2025, the net book value of loans receivable was HK$14,092 thousand, a 96.7% increase from HK$7,164 thousand on December 31, 2024, primarily due to a significant reduction in impairment provisions Loans Receivable Analysis | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Loans receivable – unsecured | 18,035 | 18,035 | 0.0% | | Impairment provision | (3,943) | (10,871) | -63.7% | | **Net book value** | **14,092** | **7,164** | **96.7%** | - For the six months ended June 30, 2025, a reversal of impairment losses of **HK$6,928 thousand** was recognized[34](index=34&type=chunk) [17. Amounts Due from Related Companies](index=13&type=section&id=17.%20Amounts%20Due%20from%20Related%20Companies) As of June 30, 2025, amounts due from related companies controlled by Mr. Xu were HK$312 thousand, unsecured, interest-free, and repayable on demand Amounts Due from Related Companies | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (HKD Thousand) | | :--- | :--- | :--- | :--- | | Amounts due from related companies | 312 | – | 312 | [18. Trade Payables](index=13&type=section&id=18.%20Trade%20Payables) As of June 30, 2025, trade payables were HK$2,050 thousand, a 47.4% decrease from HK$3,904 thousand on December 31, 2024, with all trade payables due within one month Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 month | 2,050 | 3,904 | -47.4% | [19. Disposal of Subsidiaries](index=14&type=section&id=19.%20Disposal%20of%20Subsidiaries) For the six months ended June 30, 2025, the Group disposed of three subsidiaries for a total consideration of HK$600 thousand, resulting in a loss on disposal of HK$668 thousand - For the six months ended June 30, 2025, the Group disposed of Bison Technology Limited and its subsidiaries for a total consideration of **HK$600 thousand**, resulting in a loss on disposal of **HK$668 thousand**[38](index=38&type=chunk) - On March 31, 2025, Shangtai Asset Management Limited was disposed of, generating a gain on disposal of **HK$3,479 thousand**[37](index=37&type=chunk) [20. Commitments](index=15&type=section&id=20.%20Commitments) As of June 30, 2025, the Group's contracted but unprovided investment commitments in subsidiaries amounted to HK$41,234 thousand, and future lease payments for irrevocable lease contracts were HK$888 thousand Contractual Commitments | Commitment Category | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Investment in subsidiaries | 41,234 | 49,014 | -15.9% | - Future lease payments for irrevocable lease contracts amount to **HK$888 thousand**, due within one year[39](index=39&type=chunk) [Other Information](index=16&type=section&id=Other%20Information) This section provides additional important information beyond the financial statement notes, including interim dividend policy, financial review, future investment plans, liquidity, pledged assets, exchange rate risk, contingent liabilities, business review and outlook, material acquisitions and disposals, employee and remuneration policies, securities transactions, corporate governance, and audit committee review [Interim Dividends](index=16&type=section&id=Interim%20Dividends) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend[40](index=40&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's revenue decreased by 38.5% to HK$14.4 million, and the loss attributable to owners of the parent expanded by 194.6% to HK$28.2 million, primarily due to unrealized losses on private equity fund investments, increased staff costs, and R&D expenses Key Financial Review Data | Indicator | June 30, 2025 (HKD Million) | June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 14.4 | 23.3 | -38.5% | | Loss for the period attributable to owners of the parent | 28.2 | 9.6 | 194.6% | - The increase in loss was mainly due to an unrealized loss of approximately **HK$11.6 million** from private equity fund investments (compared to a gain of HK$4.9 million in the prior period), an increase in staff costs of approximately **HK$3.2 million**, and an increase in research and development costs of approximately **HK$2.3 million**[43](index=43&type=chunk) [Future Plans for Material Investments or Capital Assets](index=16&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had no specific future plans for material investments or capital assets - As of June 30, 2025, the Group had no specific plans for material investments or capital assets[44](index=44&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=16&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, cash and cash equivalents decreased to HK$86.5 million, the gearing ratio significantly increased to 2,772.4% primarily due to a reduction in reserves attributable to owners of the parent, and net current assets substantially declined to HK$2.5 million Key Liquidity and Capital Structure Data | Indicator | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 86.5 | 101.7 | -14.9% | | Total debt | 90.8 | 92.1 | -1.4% | | Gearing ratio | 2,772.4% | 292.6% | 847.5% | | Net current assets | 2.5 | 29.4 | -91.5% | - The increase in gearing ratio was primarily due to a reduction in the company's reserves attributable to owners of the parent by approximately **25.5%** due to losses[46](index=46&type=chunk) [Pledge of Group Assets](index=17&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, approximately HK$800 thousand of the company's bank deposits were pledged, primarily as collateral for corporate credit cards - Approximately **HK$800 thousand** of bank deposits were pledged as collateral for corporate credit cards[47](index=47&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging](index=17&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) The Group's monetary assets are primarily denominated in HKD, USD, EUR, SGD, and RMB; for the six months ended June 30, 2025, net exchange gains of approximately HK$3.3 million were recognized, and no derivative transactions or hedging activities were undertaken Net Exchange Gains | Indicator | June 30, 2025 (HKD Million) | June 30, 2024 (HKD Million) | YoY Change (HKD Million) | | :--- | :--- | :--- | :--- | | Net exchange gains | 3.3 | 0.3 | 3.0 | - The Group has not entered into any transactions involving derivative instruments, nor has it adopted any financial instruments to hedge its financial position and foreign exchange risks[48](index=48&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities[49](index=49&type=chunk) [Business Review and Prospects](index=17&type=section&id=Business%20Review%20and%20Prospects) The Group primarily engages in financial services and continuously reviews its strategies to address challenges; despite geopolitical tensions and a challenging market outlook, management remains optimistic about Hong Kong's economic recovery and explores opportunities in emerging financial markets - The Group primarily engages in financial services and will continue to review its strategies to achieve corporate objectives[50](index=50&type=chunk)[51](index=51&type=chunk) - Despite geopolitical tensions and a challenging market outlook in Hong Kong, management remains optimistic about Hong Kong's economic recovery and explores opportunities in emerging financial markets[56](index=56&type=chunk) [(1) Financial Services Business](index=17&type=section&id=(1)%20Financial%20Services%20Business) - The Group is licensed to conduct Type 1, 4, and 9 regulated activities under the Securities and Futures Ordinance, and its Type 6 license was revoked on March 26, 2025[51](index=51&type=chunk)[52](index=52&type=chunk) Financial Services Business Revenue | Indicator | June 30, 2025 (HKD Million) | June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Financial services business revenue | 14.4 | 23.3 | -38.5% | [(i) External Asset Management Services](index=18&type=section&id=(i)%20External%20Asset%20Management%20Services) External Asset Management Business AUM | Indicator | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | External asset management business AUM | 2,200 | 3,600 | -38.9% | External Asset Management Services Revenue | Indicator | June 30, 2025 (HKD Million) | June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | External asset management services revenue | 8.1 | 18.6 | -56.5% | - The decrease in revenue was due to client withdrawals, leading to a decline in assets under management and reduced transactions[53](index=53&type=chunk) [(ii) Fund Management Services](index=18&type=section&id=(ii)%20Fund%20Management%20Services) Fund Management Services Revenue | Indicator | June 30, 2025 (HKD Million) | June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Fund management services income | 6.2 | 4.2 | 49.0% | - The increase in revenue was primarily due to the successful realization of related investments in a fund managed by the Group through its fund management services business[54](index=54&type=chunk) [(iii) Securities Services](index=19&type=section&id=(iii)%20Securities%20Services) - The Group provides comprehensive securities brokerage services through TEDA Asset Management, including securities margin financing, underwriting, placement services, and securities trading[55](index=55&type=chunk) - To minimize operating costs in uncertain economic conditions, this business is currently maintained at a minimal scale[55](index=55&type=chunk) [(iv) Investment Advisory Services for Fund Management](index=19&type=section&id=(iv)%20Investment%20Advisory%20Services%20for%20Fund%20Management) - The Group provides portfolio advisory services to fund managers or general partners of offshore private equity funds[56](index=56&type=chunk) [(2) Other Investments](index=19&type=section&id=(2)%20Other%20Investments) - The Group makes passive investments as a limited partner in investment funds, aiming for long-term capital appreciation through investments in debt or equity securities[57](index=57&type=chunk) Investment Fund Related Data | Indicator | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Amount invested in investment funds | 40.6 | 43.9 | -7.5% | | % of total capital contribution to investment funds | 100% | 59.0% | 69.5% | | Fair value of investment funds | 3.9 | 18.7 | -79.1% | | Net unrealized loss on financial assets at fair value through profit or loss | 11.6 | (4.9) (Gain) | -336.7% | - The investment fund's sole related investment, a metaverse bond, was assessed to have a fair value of zero as of June 30, 2025, due to the issuer's delayed repayment and share suspension, resulting in the recognition of an unrealized loss of approximately **HK$10.9 million**[60](index=60&type=chunk)[61](index=61&type=chunk) [Outlook](index=21&type=section&id=Outlook) The Group anticipates a challenging overall business environment and will continue to prudently monitor developments, strategically adjust resource allocation for its financial services business, and seize investment opportunities to enhance shareholder returns - The overall business environment is expected to remain challenging, especially amidst geopolitical tensions and increasing global inflationary pressures[62](index=62&type=chunk) - The Group will strategically adjust resource allocation for its financial services business and continue to seize investment opportunities, striving to enhance shareholder returns[62](index=62&type=chunk) [Material Acquisitions or Disposals](index=21&type=section&id=Material%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group had no material transactions regarding the acquisition or disposal of subsidiaries, associates, and joint ventures - The Group had no material transactions regarding the acquisition or disposal of subsidiaries, associates, and joint ventures[63](index=63&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 31 full-time employees, with staff costs of approximately HK$13.6 million; the company offers competitive remuneration and benefits and has a share option scheme to incentivize employees Number of Employees | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of full-time employees | 31 | 37 | -16.2% | Staff Costs | Indicator | June 30, 2025 (HKD Million) | June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Staff costs | 13.6 | 10.4 | 30.8% | - The company has a share option scheme designed to provide employees with opportunities to acquire ownership interests in the company, rewarding contributions and enhancing company value[65](index=65&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[66](index=66&type=chunk) [Compliance with the Corporate Governance Code](index=22&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules, except for the combined roles of Chairman and Chief Executive Officer - The company complied with all applicable provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Sun Lei, which deviates from code provision C.2.1[67](index=67&type=chunk) - The Board believes that Mr. Sun's dual role facilitates the execution of business strategies and enhances operational efficiency[67](index=67&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=22&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted its own Model Code for Securities Transactions by Directors, and all directors confirmed compliance with this code for the six months ended June 30, 2025 - The company has adopted its own Model Code for Securities Transactions by Directors, and all directors confirmed compliance[68](index=68&type=chunk) [Audit Committee Review](index=23&type=section&id=Audit%20Committee%20Review) The Audit Committee has reviewed the company's unaudited consolidated financial statements and interim report for the six months ended June 30, 2025, and discussed audit, risk management, internal control, and financial reporting matters with management - The Audit Committee has reviewed the interim financial statements and report, and discussed audit, risk management, internal control, and financial reporting matters with management[69](index=69&type=chunk) - The auditor performed certain agreed-upon procedures on the interim condensed consolidated financial statements in accordance with Hong Kong Standard on Related Services 4400, but without providing any assurance[69](index=69&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) Except as disclosed in this announcement, no significant events occurred after the six months ended June 30, 2025, up to the date of this announcement - No significant events occurred after the reporting period up to the announcement date[70](index=70&type=chunk) [Publication of Interim Results and Interim Report](index=23&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This results announcement has been published on the HKEX website and the company's website; the interim report will be published on the aforementioned websites in due course, and printed copies will be sent to shareholders upon request - The results announcement has been published on the HKEX website and the company's website, and the interim report will be published in due course and sent to shareholders upon request[71](index=71&type=chunk) [Board of Directors](index=23&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises three executive directors (Mr. Xu Peixin, Mr. Sun Lei (Chairman), Mr. Zhu Dong), one non-executive director (Dr. Yuan Haihai), and three independent non-executive directors (Dr. Qi Daqing, Mr. Chen Yigong, Mr. Feng Zhonghua) - The Board of Directors consists of three executive directors, one non-executive director, and three independent non-executive directors[71](index=71&type=chunk)

[Report Summary](index=1&type=section&id=Report%20Summary) This report summarizes the Group's financial highlights for the period, showing a slight revenue decrease but increased net profit attributable to equity holders and a declared interim dividend [1.1 Financial Highlights](index=1&type=section&id=1.1%20Financial%20Highlights) During the reporting period, the Group's revenue decreased by 1.55% to RMB 3.086 billion, while net profit attributable to equity holders increased by 9.33% to RMB 1.286 billion, with basic earnings per share of RMB 0.76 and an interim dividend of HKD 0.10 per share | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,086.33 | 3,134.98 | -1.55 | | Net Profit Attributable to Equity Holders | 1,285.54 | 1,175.88 | 9.33 | | Net Profit from Main Business Attributable to Equity Holders | 446.17 | 474.76 | -6.02 | | Basic Earnings Per Share (RMB) | 0.76 | 0.67 | 13.43 | | Interim Dividend (HKD/share) | 0.10 | N/A | N/A | [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the Group's consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position, reflecting key financial performance and health indicators [2.1 Consolidated Statement of Profit or Loss](index=2&type=section&id=2.1%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's consolidated statement of profit or loss shows a slight revenue decrease, but profit for the period increased due to higher share of profits from associates | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,086,325 | 3,134,976 | | Cost of Sales | (1,901,927) | (1,984,091) | | Gross Profit | 1,184,398 | 1,150,885 | | Operating Profit | 888,229 | 904,244 | | Finance Costs | (334,276) | (353,785) | | Share of Profits from Associates | 839,366 | 701,120 | | Profit Before Tax | 1,393,319 | 1,251,579 | | Profit for the Period | 1,320,511 | 1,220,641 | | Profit Attributable to Equity Holders of the Company | 1,285,536 | 1,175,881 | | Basic Earnings Per Share (RMB) | 0.76 | 0.67 | [2.2 Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=2.2%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, the Group's total comprehensive income significantly increased, primarily driven by higher profit for the period and contributions from other comprehensive income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 1,320,511 | 1,220,641 | | Other Comprehensive Income for the Period | 38,270 | 21,871 | | Total Comprehensive Income for the Period | 1,358,781 | 1,242,512 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 1,323,806 | 1,197,752 | [2.3 Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and equity both increased, but a net current liability emerged, mainly due to the reclassification of medium-term notes | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 74,843,485 | 74,510,651 | | Current Assets | 8,555,806 | 7,815,532 | | **Total Assets** | **83,399,291** | **82,326,183** | | Current Liabilities | 8,672,413 | 6,251,413 | | Non-current Liabilities | 24,729,879 | 26,898,138 | | **Total Liabilities** | **33,402,292** | **33,149,551** | | Equity Attributable to Equity Holders of the Company | 48,545,611 | 47,713,102 | | Non-controlling Interests | 1,451,388 | 1,463,530 | | **Total Equity** | **49,996,999** | **49,176,632** | | Net Current (Liabilities) / Assets | (116,607) | 1,564,119 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the basis of preparation, accounting policy changes, revenue disaggregation, segment reporting, and other financial items, offering deeper insights into the Group's financial reporting [3.1 Basis of Preparation](index=6&type=section&id=3.1%20Basis%20of%20Preparation) This interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, based on a going concern assumption, as management believes the Group can meet its financial obligations despite net current liabilities - This interim financial report complies with the requirements of International Accounting Standard 34 "Interim Financial Reporting" and has been approved by the Board of Directors and reviewed by the Audit Committee[3](index=3&type=chunk)[11](index=11&type=chunk) - Despite recording **net current liabilities** as of June 30, 2025, management believes the Group can fully meet its financial obligations within the next 12 months, based on **RMB 15.3 billion of unutilized bank facilities**, thus preparing the report on a going concern basis is appropriate[12](index=12&type=chunk) [3.2 Changes in Accounting Policies](index=6&type=section&id=3.2%20Changes%20in%20Accounting%20Policies) This interim financial report applied amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability' with no significant impact, and no other new standards or interpretations not yet effective were adopted - The Group has applied the amendments to International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," but it had **no significant impact** as no foreign currency non-exchangeable transactions were conducted[15](index=15&type=chunk) - **No new standards or interpretations** not yet effective were adopted in this accounting period[16](index=16&type=chunk) [3.3 Revenue and Segment Reporting](index=7&type=section&id=3.3%20Revenue%20and%20Segment%20Reporting) The Group's revenue primarily derives from waste treatment, port logistics, new building materials, new energy business, and investments; total revenue decreased by 1.55% year-on-year, but new energy business revenue significantly increased - The Group's main businesses include providing construction services and operating waste treatment projects, port logistics services, production and sales of new building materials, new energy business, and investments[17](index=17&type=chunk) | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Waste Treatment (Construction Services) | 274,043 | 602,635 | -54.53 | | Waste Treatment (Operation Services) | 2,003,709 | 1,851,284 | 8.23 | | Energy-saving Equipment | 258,538 | 332,561 | -22.26 | | Port Logistics Services | 90,280 | 88,624 | 1.87 | | New Building Materials | 45,826 | 46,540 | -1.53 | | New Energy Business | 310,318 | 106,400 | 191.65 | | Interest Income from Service Concession Arrangements | 103,611 | 106,932 | -3.11 | | **Total Revenue** | **3,086,325** | **3,134,976** | **-1.55** | [3.3.1 Revenue Disaggregation](index=7&type=section&id=3.3.1%20Revenue%20Disaggregation) Revenue is disaggregated by major product or service categories, with significant growth in waste treatment operation services and new energy business revenue, while construction services and energy-saving equipment revenue declined | Revenue Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Waste Treatment - Construction Services | 274,043 | 602,635 | | Waste Treatment - Operation Services | 2,003,709 | 1,851,284 | | Energy-saving Equipment | 258,538 | 332,561 | | Port Logistics Services | 90,280 | 88,624 | | New Building Materials | 45,826 | 46,540 | | New Energy Business | 310,318 | 106,400 | | Interest Income from Service Concession Arrangements | 103,611 | 106,932 | - Revenue recognized over time from customer contracts accounted for a larger proportion, totaling **RMB 2,597,127 thousand** in H1 2025, while revenue recognized at a point in time was **RMB 385,587 thousand**[19](index=19&type=chunk) [3.3.2 Segment Reporting](index=8&type=section&id=3.3.2%20Segment%20Reporting) The Group manages segments by business line, with waste treatment and investment segments contributing the majority of profit before tax, and new energy business showing significant revenue growth but lower gross margins - The Group is managed by business line, and the chief executive officer assesses the operating results of each segment based on **profit before tax**[20](index=20&type=chunk) | Segment | H1 2025 Profit Before Tax (RMB thousand) | H1 2024 Profit Before Tax (RMB thousand) | | :--- | :--- | :--- | | Waste Treatment | 617,568 | 597,781 | | Port Logistics Services | 42,015 | 43,800 | | New Building Materials | (8,509) | (13,213) | | New Energy Business | (33,835) | (3,133) | | Investment | 839,366 | 701,120 | | Others | (63,286) | (74,776) | | **Total** | **1,393,319** | **1,251,579** | - As of June 30, 2025, the **waste treatment segment's assets** were **RMB 37,339,483 thousand**, and the **investment segment's assets** were **RMB 39,068,092 thousand**, representing the largest asset components of the Group[20](index=20&type=chunk)[22](index=22&type=chunk) [3.3.3 Geographical Information](index=9&type=section&id=3.3.3%20Geographical%20Information) The Group's revenue primarily originates from Mainland China, but revenue and specific non-current assets in the Asia-Pacific region (excluding Mainland China) both decreased | Region | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 2,967,183 | 2,981,304 | | Asia-Pacific (excluding Mainland China) | 119,142 | 153,672 | | **Total** | **3,086,325** | **3,134,976** | | Region | June 30, 2025 Specific Non-current Assets (RMB thousand) | December 31, 2024 Specific Non-current Assets (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 74,182,361 | 73,843,983 | | Asia-Pacific (excluding Mainland China) | 394,012 | 398,845 | | **Total** | **74,576,373** | **74,242,828** | [3.4 Net Other Income](index=10&type=section&id=3.4%20Net%20Other%20Income) During the reporting period, the Group's net other income increased by 21.99% year-on-year, primarily due to an increase in government grants | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits and Cash | 16,254 | 25,354 | | Government Grants | 48,948 | 34,258 | | VAT Refund | 18,475 | 16,921 | | Exchange Gain | 699 | 333 | | Realized/Unrealized Net Loss on Financial Assets at FVTPL | (1,155) | (9,403) | | Others | (749) | 143 | | **Total** | **82,472** | **67,606** | - Net other income increased by **RMB 14.87 million**, a **21.99% increase**, mainly due to higher government grants received[24](index=24&type=chunk)[68](index=68&type=chunk) [3.5 Profit Before Tax](index=11&type=section&id=3.5%20Profit%20Before%20Tax) Profit before tax is calculated after deducting finance costs, depreciation, amortization, and R&D costs; finance costs decreased due to lower interest rates on interest-bearing debt, while depreciation, amortization, and impairment provisions for trade receivables increased - The calculation of profit before tax has deducted or included items such as finance costs, depreciation and amortization, research and development costs, and impairment provisions for trade receivables and contract assets[25](index=25&type=chunk) [3.5.1 Finance Costs](index=11&type=section&id=3.5.1%20Finance%20Costs) During the reporting period, the Group's finance costs decreased by 5.51% year-on-year, primarily due to a lower blended interest rate on interest-bearing debt, despite an increase in interest on unsecured medium-term notes | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on Loans and Borrowings | 335,234 | 412,437 | | Interest on Lease Liabilities | 638 | 848 | | Interest on Unsecured Medium-Term Notes | 52,899 | 40,316 | | Less: Interest Expenses Capitalized to Construction in Progress and Intangible Assets | (54,495) | (99,816) | | **Total Finance Costs** | **334,276** | **353,785** | - Finance costs decreased by **5.51% year-on-year**, mainly due to a **decrease in the Group's blended interest rate on interest-bearing debt**[71](index=71&type=chunk) [3.5.2 Other Items](index=11&type=section&id=3.5.2%20Other%20Items) During the reporting period, depreciation of owned property, plant, and equipment and amortization of intangible assets both increased, while loss allowances for trade receivables and contract assets shifted from reversal to provision | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of Owned Property, Plant and Equipment | 171,600 | 128,646 | | Depreciation of Right-of-Use Assets | 24,420 | 36,051 | | Amortization of Intangible Assets | 407,147 | 361,080 | | Research and Development Costs | 21,015 | 22,516 | | Loss Allowance for Trade Receivables and Contract Assets (Provision) / (Reversal) | 10,172 | (5,991) | [3.6 Income Tax](index=12&type=section&id=3.6%20Income%20Tax) Income tax expense significantly increased during the reporting period, mainly due to higher PRC income tax provisions; the Group applies different tax policies across regions, with some PRC subsidiaries enjoying preferential rates for high-tech enterprises or those in western regions | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax - Provision for PRC Income Tax for the Period | 92,044 | 66,507 | | Over-provision in Prior Years | (13,091) | (31,195) | | Deferred Tax - Net Reversal of Temporary Differences | (6,145) | (4,374) | | **Income Tax Expense** | **72,808** | **30,938** | - The statutory tax rate for taxable income of subsidiaries in Mainland China is **25%**, with some high-tech enterprises and subsidiaries registered in western regions enjoying a **preferential tax rate of 15%**[29](index=29&type=chunk)[30](index=30&type=chunk) - Specific subsidiaries engaged in waste treatment enjoy a **three-year tax exemption** followed by a **three-year 50% tax reduction** from the commencement of operating income[34](index=34&type=chunk) [3.7 Earnings Per Share](index=13&type=section&id=3.7%20Earnings%20Per%20Share) Basic earnings per share for the reporting period was RMB 0.76, higher than the prior year; diluted earnings per share was the same as basic earnings per share due to no potentially dilutive ordinary shares outstanding - For the six months ended June 30, 2025, **basic earnings per share** was **RMB 0.76**, higher than **RMB 0.67** in the prior year[5](index=5&type=chunk)[31](index=31&type=chunk) - **Diluted earnings per share** was the same as basic earnings per share because there were **no potentially dilutive ordinary shares** outstanding[32](index=32&type=chunk) [3.8 Interests in Associates](index=13&type=section&id=3.8%20Interests%20in%20Associates) The Group's interests in associates, primarily Conch Group, are reflected in their net assets, with a significant increase in the share of profits from associates during the reporting period - As of June 30, 2025, interests in associates represent the Group's share of net assets in Anhui Conch Group Co., Ltd. and other individually immaterial associates[33](index=33&type=chunk) - During the reporting period, the Group recognized a **share of profits from associates of RMB 839,366 thousand** in the consolidated statement of profit or loss, a significant increase from **RMB 701,120 thousand** in the prior year[33](index=33&type=chunk) [3.9 Contract Assets](index=14&type=section&id=3.9%20Contract%20Assets) Contract assets comprise service concession arrangement assets, renewable energy tariff subsidies, and energy-saving equipment retention money, with a slight decrease in total amount | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Contract Assets | 3,719,536 | 3,844,358 | | Current Contract Assets | 1,217,998 | 1,058,405 | | **Total Contract Assets** | **4,937,534** | **4,902,763** | - Service concession arrangement assets accrue interest at annual rates ranging from **6.01% to 9.41%**, related to BOT arrangements[35](index=35&type=chunk) - Current contract assets include **renewable energy tariff subsidies** and **energy-saving equipment retention money**, with retention money expected to be recovered within the normal operating cycle[35](index=35&type=chunk) [3.10 Trade and Other Receivables](index=15&type=section&id=3.10%20Trade%20and%20Other%20Receivables) Total trade and other receivables slightly increased, while trade receivables net of loss allowances decreased, and the aging analysis of overdue amounts shows most are within one year | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (net of loss allowance) | 2,589,887 | 2,851,642 | | Bills Receivable at Amortized Cost | 62,515 | 64,994 | | Other Receivables | 578,483 | 499,977 | | Amounts Due from Related Parties | 273,915 | 273,388 | | **Total Current and Non-current Trade and Other Receivables** | **5,220,701** | **5,141,869** | | Aging of Trade Receivables and Bills Receivable (net of loss allowance) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 1,991,524 | 1,545,226 | | Not Exceeding One Year | 410,530 | 595,722 | | One to Two Years | 334,147 | 331,602 | | Over Two Years | 115,441 | 117,337 | | **Total** | **2,851,642** | **2,589,887** | [3.11 Trade and Other Payables](index=16&type=section&id=3.11%20Trade%20and%20Other%20Payables) Total trade and other payables decreased, with both trade payables and bills payable showing reductions | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 2,092,306 | 2,656,932 | | Bills Payable | 134,075 | 191,979 | | Other Payables and Accrued Expenses | 1,182,452 | 1,229,406 | | Amounts Due to Third Parties | 3,408,833 | 4,078,317 | | Amounts Due to Related Parties | 109,092 | 138,597 | | **Total Trade and Other Payables** | **3,534,508** | **4,243,357** | - An aging analysis of trade payables and bills payable indicates that **most are due within one year**[39](index=39&type=chunk) [3.12 Dividends](index=17&type=section&id=3.12%20Dividends) The Board resolved to declare an interim dividend of HKD 0.10 per share, and a final dividend of HKD 0.30 per share was paid prior to interim approval - The Board resolved to declare an **interim dividend of HKD 0.10 per share** for the six months ended June 30, 2025 (2024: nil)[4](index=4&type=chunk)[41](index=41&type=chunk)[95](index=95&type=chunk) - As of June 30, 2025, the interim dividend for the current year has **not yet been recognized as a liability**[41](index=41&type=chunk) - A **final dividend of HKD 0.30 per share** (approximately **RMB 491,297 thousand**) approved at the Annual General Meeting on June 25, 2025, was paid in July 2025[42](index=42&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's business performance, financial results, liquidity, and capital resources, alongside an analysis of the macroeconomic environment and future outlook [4.1 Macroeconomic Environment](index=18&type=section&id=4.1%20Macroeconomic%20Environment) In H1 2025, China's GDP grew by 5.3%, with stable economic operations; the Group actively responds to national green and low-carbon transition strategies, focusing on its core environmental protection business and exploring new circular economy pathways - In H1 2025, China's GDP grew by **5.3% year-on-year**, with stable national economic operations, and the green economy emerged as a key driver for high-quality development[43](index=43&type=chunk) - As a provider of energy-saving and environmental protection solutions, the Group focuses on its core green environmental protection business, emphasizes industrial upgrading, and actively explores new pathways for the circular economy to serve national ecological civilization construction[43](index=43&type=chunk) [4.2 Business Review](index=18&type=section&id=4.2%20Business%20Review) During the reporting period, the Group implemented a strategy of 'focusing on core business, unleashing potential, and improving quality and efficiency,' achieving steady progress in environmental protection, increased capacity utilization in new energy materials, and a rebound in port logistics throughput - The Group consistently implemented the overall strategy of "focusing on core business, unleashing potential, and improving quality and efficiency," adhering to a business strategy of enhancing quality and efficiency in its environmental protection core business and achieving synergistic benefits across multiple industrial segments[44](index=44&type=chunk) - As of the end of the reporting period, the Group had promoted and signed **130 projects** across **23 provinces, municipalities, and autonomous regions** nationwide, covering waste-to-energy, fly ash treatment, food waste treatment, cement kiln co-processing of waste, new energy, lithium battery recycling, new building materials, and port logistics[45](index=45&type=chunk) [4.2.1 Overall Business Overview](index=18&type=section&id=4.2.1%20Overall%20Business%20Overview) The Group achieved steady progress across its business segments, including municipal solid waste treatment, new energy materials, lithium battery recycling, and port logistics, laying a solid foundation for annual operating targets - Significant operating results were achieved in the municipal solid waste treatment industry, with **double growth in waste intake and grid-connected electricity generation**; capacity utilization in the new energy materials industry significantly improved; process technology was optimized in the lithium battery recycling industry; and port logistics throughput rebounded notably[44](index=44&type=chunk) [4.2.2 Municipal Solid Waste Treatment](index=19&type=section&id=4.2.2%20Municipal%20Solid%20Waste%20Treatment) The Group's municipal solid waste treatment business achieved growth in waste received, treated, and electricity generated by enhancing operational efficiency, expanding waste sources, diversifying operations, and pursuing price increases - As of the end of the reporting period, the Group had formed a municipal solid waste treatment capacity of approximately **20.858 million tonnes/year** (approximately **58,075 tonnes/day**)[57](index=57&type=chunk) [4.2.2.1 Grate Furnace Waste-to-Energy](index=19&type=section&id=4.2.2.1%20Grate%20Furnace%20Waste-to-Energy) Grate furnace waste-to-energy business achieved year-on-year growth in waste received, treated, and electricity generated through refined management and business expansion, actively pursuing increases in waste treatment fees and slag prices - During the reporting period, the grate furnace waste-to-energy business received approximately **9.325 million tonnes of municipal solid waste** (a **3% year-on-year increase**), treated approximately **8.021 million tonnes of municipal solid waste** (a **3% year-on-year increase**), and generated approximately **2.69 billion kWh of grid-connected electricity** (a **6% year-on-year increase**)[47](index=47&type=chunk) - The average grid-connected electricity per tonne was approximately **336 kWh** (an increase of **10 kWh/tonne**), steam sales were approximately **313 thousand tonnes** (a **170% year-on-year increase**), and **402 thousand green certificates** were sold[47](index=47&type=chunk) - As of the end of the reporting period, the Group had **87 grate furnace waste-to-energy projects** in operation, with a total treatment capacity of **17.42 million tonnes/year** (**48,450 tonnes/day**), of which **32 projects** are listed in the national renewable energy power generation subsidy project catalog[46](index=46&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) [4.2.2.2 Food Waste Treatment](index=26&type=section&id=4.2.2.2%20Food%20Waste%20Treatment) The food waste treatment business has 20 projects in operation with a total capacity of approximately 468,000 tonnes/year, achieving growth in food waste received, treated, and grease sales during the reporting period - As of the end of the reporting period, the Group had **20 food waste treatment projects** in operation and **1 under construction**, with a total treatment capacity of approximately **468 thousand tonnes/year** (approximately **1,225 tonnes/day**)[54](index=54&type=chunk)[55](index=55&type=chunk) - During the reporting period, approximately **113 thousand tonnes of food waste** were received and treated (a **26% year-on-year increase**), and approximately **2,001 tonnes of grease** were sold (a **36% year-on-year increase**)[54](index=54&type=chunk) [4.2.2.3 Cement Kiln Co-processing of Waste](index=28&type=section&id=4.2.2.3%20Cement%20Kiln%20Co-processing%20of%20Waste) The cement kiln co-processing of waste business has 9 projects completed with a total capacity of approximately 640,000 tonnes/year, achieving a certain scale of municipal solid waste received and actually treated during the reporting period - As of the end of the reporting period, the cement kiln co-processing of waste business had **9 projects completed**, with a treatment capacity of approximately **640 thousand tonnes/year** (approximately **1,900 tonnes/day**)[56](index=56&type=chunk)[58](index=58&type=chunk) - During the reporting period, approximately **140 thousand tonnes of municipal solid waste** were received, and approximately **115 thousand tonnes of municipal solid waste** were actually treated[56](index=56&type=chunk) [4.2.3 New Energy Business](index=29&type=section&id=4.2.3%20New%20Energy%20Business) The Group's new energy business continuously monitors industry trends, with strong production and sales in lithium iron phosphate cathode material projects, steady progress in anode material projects, and optimized process technology and new signed projects in lithium battery recycling - The lithium iron phosphate cathode material project adheres to a "production based on sales" strategy, strengthening market development, with initial success in new product R&D and certification, and **capacity utilization reaching a new high**[59](index=59&type=chunk) - The lithium battery recycling and comprehensive utilization project has signed a treatment capacity of approximately **240 thousand tonnes/year**, producing **22 thousand tonnes of cathode materials** and achieving **revenue of RMB 310.32 million** during the reporting period[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) [4.2.4 New Building Materials and Port Logistics](index=30&type=section&id=4.2.4%20New%20Building%20Materials%20and%20Port%20Logistics) New building materials business enhances product added value and market share through process optimization and cost control; port logistics business achieves throughput and revenue growth by upgrading services and expanding cargo sources - The new building materials business sold approximately **3.8 million square meters of products**, achieving operating revenue of **RMB 45.83 million**[62](index=62&type=chunk) - The port logistics business achieved a throughput of approximately **17.29 million tonnes**, generating operating revenue of **RMB 90.28 million**[62](index=62&type=chunk) [4.3 Financial Performance](index=31&type=section&id=4.3%20Financial%20Performance) During the reporting period, the Group's total revenue slightly decreased, but both profit before tax and net profit attributable to equity holders increased, primarily due to the contribution from associates' profits | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,086,325 | 3,134,976 | -1.55 | | Profit Before Tax | 1,393,319 | 1,251,579 | 11.32 | | Share of Profits from Associates | 839,366 | 701,120 | 19.72 | | Profit Before Tax from Main Business | 553,953 | 550,459 | 0.63 | | Net Profit Attributable to Equity Holders of the Company | 1,285,536 | 1,175,881 | 9.33 | | Net Profit from Main Business Attributable to Equity Holders of the Company | 446,170 | 474,761 | -6.02 | [4.3.1 Overall Financial Performance](index=31&type=section&id=4.3.1%20Overall%20Financial%20Performance) The decrease in revenue was mainly due to fewer ongoing construction projects, while the growth in profit before tax and net profit attributable to equity holders was primarily driven by increased share of profits from associates - Revenue decreased by **1.55% year-on-year**, primarily due to a **reduction in the Group's ongoing construction projects**[63](index=63&type=chunk) - Profit before tax increased by **11.32% year-on-year**, and net profit attributable to equity holders of the Company increased by **9.33% year-on-year**, mainly due to an **increase in the share of profits from associate Conch Group**[63](index=63&type=chunk) [4.3.2 Revenue by Business Segment](index=32&type=section&id=4.3.2%20Revenue%20by%20Business%20Segment) New energy business revenue achieved rapid growth of 191.65%, while waste treatment and energy-saving equipment revenue decreased due to fewer ongoing projects and reduced orders | Item | H1 2025 Amount (RMB thousand) | H1 2025 Proportion (%) | H1 2024 Amount (RMB thousand) | H1 2024 Proportion (%) | Amount Change (%) | Proportion Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Waste Treatment | 2,381,363 | 77.16 | 2,560,851 | 81.69 | -7.01 | -4.53 | | Energy-saving Equipment | 258,538 | 8.38 | 332,561 | 10.61 | -22.26 | -2.23 | | New Building Materials | 45,826 | 1.48 | 46,540 | 1.48 | -1.53 | – | | New Energy Business | 310,318 | 10.05 | 106,400 | 3.39 | 191.65 | 6.66 | | Port Logistics | 90,280 | 2.93 | 88,624 | 2.83 | 1.87 | 0.10 | | **Total** | **3,086,325** | **100.00** | **3,134,976** | **100.00** | **-1.55** | – | - New energy business revenue grew rapidly by **191.65%**, primarily due to **active market expansion**[64](index=64&type=chunk) - Waste treatment revenue decreased by **7.01%**, mainly due to **fewer ongoing construction projects**; energy-saving equipment revenue decreased by **22.26%**, primarily due to **reduced orders**[64](index=64&type=chunk) [4.3.3 Revenue Structure](index=33&type=section&id=4.3.3%20Revenue%20Structure) Operating revenue from the waste treatment segment increased by 7.61% year-on-year, while construction revenue decreased by 54.53%, reflecting the impact of fewer ongoing projects on the revenue structure | Revenue Structure | H1 2025 Amount (RMB thousand) | H1 2025 Proportion (%) | H1 2024 Amount (RMB thousand) | H1 2024 Proportion (%) | Amount Change (%) | Proportion Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,107,320 | 88.49 | 1,958,216 | 76.47 | 7.61 | 12.02 | | Construction Revenue | 274,043 | 11.51 | 602,635 | 23.53 | -54.53 | -12.02 | | **Total** | **2,381,363** | **100.00** | **2,560,851** | **100.00** | **-7.01** | – | - Operating revenue from the waste treatment segment increased by **7.61%**, mainly due to **higher waste intake and grid-connected electricity generation**[65](index=65&type=chunk) - Construction period revenue from the waste treatment segment decreased by **54.53%**, primarily due to **fewer ongoing construction projects**[65](index=65&type=chunk) [4.3.4 Revenue by Region](index=34&type=section&id=4.3.4%20Revenue%20by%20Region) Revenue from Mainland China market slightly decreased, while revenue from the Asia-Pacific region (excluding Mainland China) saw a larger decline, mainly due to reduced overseas orders for energy-saving equipment | Item | H1 2025 Amount (RMB thousand) | H1 2025 Proportion (%) | H1 2024 Amount (RMB thousand) | H1 2024 Proportion (%) | Amount Change (%) | Proportion Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 2,967,183 | 96.14 | 2,981,304 | 95.10 | -0.47 | 1.04 | | Asia-Pacific (excluding Mainland China) | 119,142 | 3.86 | 153,672 | 4.90 | -22.47 | -1.04 | | **Total** | **3,086,325** | **100.00** | **3,134,976** | **100.00** | **-1.55** | – | - Revenue from the Asia-Pacific region (excluding Mainland China) decreased by **22.47%**, mainly due to **reduced overseas orders for energy-saving equipment**[66](index=66&type=chunk) [4.3.5 Gross Profit and Gross Profit Margin](index=34&type=section&id=4.3.5%20Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's overall gross profit margin increased, with improvements in waste treatment, energy-saving equipment, and new building materials businesses, while new energy and port logistics gross margins decreased due to market competition | Item | H1 2025 Gross Profit (RMB thousand) | H1 2025 Gross Profit Margin (%) | H1 2024 Gross Profit (RMB thousand) | H1 2024 Gross Profit Margin (%) | Amount Change (%) | Gross Profit Margin Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Waste Treatment | 1,040,784 | 43.71 | 983,192 | 38.39 | 5.86 | 5.32 | | Energy-saving Equipment | 83,923 | 32.46 | 99,887 | 30.04 | -15.98 | 2.42 | | New Building Materials | 4,753 | 10.37 | 3,021 | 6.49 | 57.33 | 3.88 | | New Energy Business | 2,410 | 0.78 | 11,219 | 10.54 | -78.52 | -9.76 | | Port Logistics | 52,528 | 58.18 | 53,566 | 60.44 | -1.94 | -2.26 | | **Total** | **1,184,398** | **38.38** | **1,150,885** | **36.71** | **2.91** | **1.67** | - Waste treatment gross profit margin increased by **5.32 percentage points**, mainly due to **quality and efficiency improvement measures** and an **increase in operating projects**[69](index=69&type=chunk) - New energy business gross profit margin decreased by **9.76 percentage points**, mainly due to **fierce market competition leading to lower product prices**[69](index=69&type=chunk) [4.3.6 Net Other Income](index=35&type=section&id=4.3.6%20Net%20Other%20Income) Net other income increased by 21.99% year-on-year, primarily due to an increase in government grants - Net other income was **RMB 82.47 million**, a **21.99% year-on-year increase**, primarily due to an **increase in government grants received** by the Group[68](index=68&type=chunk) [4.3.7 Administrative Expenses](index=36&type=section&id=4.3.7%20Administrative%20Expenses) Administrative expenses increased by 15.17% year-on-year, mainly due to higher staff costs and taxes resulting from an increase in operating companies - Administrative expenses were **RMB 354.10 million**, a **15.17% year-on-year increase**, primarily due to **higher staff costs and taxes** resulting from an **increase in operating companies**[70](index=70&type=chunk) [4.3.8 Finance Costs](index=36&type=section&id=4.3.8%20Finance%20Costs) Finance costs decreased by 5.51% year-on-year, primarily due to a reduction in the blended interest rate on interest-bearing debt - Finance costs were **RMB 334.28 million**, a **5.51% year-on-year decrease**, primarily due to a **reduction in the Group's blended interest rate on interest-bearing debt**[71](index=71&type=chunk) [4.4 Financial Position](index=36&type=section&id=4.4%20Financial%20Position) As of the end of the reporting period, the Group's total assets and equity both increased, and the asset-liability ratio slightly decreased, but a net current liability emerged, mainly due to the reclassification of medium-term notes | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 83,399,291 | 82,326,183 | 1.30 | | Total Liabilities | 33,402,292 | 33,149,551 | 0.76 | | Equity Attributable to Equity Holders of the Company | 48,545,611 | 47,713,102 | 1.74 | | Asset-Liability Ratio | 40.05% | 40.27% | -0.22 percentage points | [4.4.1 Assets and Liabilities Overview](index=36&type=section&id=4.4.1%20Assets%20and%20Liabilities%20Overview) The Group's total assets and equity both grew, and the asset-liability ratio slightly improved, reflecting sound financial management - As of June 30, 2025, the Group's **total assets** amounted to **RMB 83,399.29 million**, an increase of **1.30%** from the end of the previous year[72](index=72&type=chunk) - **Equity attributable to equity holders of the Company** was **RMB 48,545.61 million**, an increase of **1.74%** from the end of the previous year[72](index=72&type=chunk) - The **asset-liability ratio** (total liabilities/total assets) was **40.05%**, a decrease of **0.22 percentage points** from the end of the previous year[72](index=72&type=chunk) [4.4.2 Non-current Assets and Non-current Liabilities](index=37&type=section&id=4.4.2%20Non-current%20Assets%20and%20Non-current%20Liabilities) Non-current assets slightly increased, mainly due to new property, plant and equipment and intangible assets; non-current liabilities decreased, primarily due to reduced bank loans and the reclassification of green medium-term notes - **Non-current assets** were **RMB 74,843.49 million**, a **0.45% increase** from the end of the previous year, mainly due to **new property, plant and equipment and intangible assets**[73](index=73&type=chunk) - **Non-current liabilities** were **RMB 24,729.88 million**, an **8.06% decrease** from the end of the previous year, mainly due to a **reduction in bank loans** and the **reclassification of RMB 2.7 billion green medium-term notes** to current liabilities[73](index=73&type=chunk) [4.4.3 Current Assets and Current Liabilities](index=37&type=section&id=4.4.3%20Current%20Assets%20and%20Current%20Liabilities) The Group's current assets increased, but a net current liability emerged due to the reclassification of RMB 2.7 billion green medium-term notes to current liabilities - **Current assets** were **RMB 8,555.81 million**, **current liabilities** were **RMB 8,672.41 million**, resulting in **net current liabilities of RMB 116.61 million**[74](index=74&type=chunk) - The **net current liabilities decreased by RMB 1,680.73 million** from the end of the previous year, primarily due to the **reclassification of RMB 2.7 billion green medium-term notes** to current liabilities[74](index=74&type=chunk) [4.4.4 Equity Attributable to Equity Holders of the Company](index=37&type=section&id=4.4.4%20Equity%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) Equity attributable to equity holders of the Company continued to grow, primarily benefiting from the Group's sustained profitability - **Equity attributable to equity holders of the Company** was **RMB 48,545.61 million**, a **1.74% increase** from the end of the previous year, mainly due to the **Group's sustained profitability**[75](index=75&type=chunk) [4.5 Liquidity and Capital Resources](index=38&type=section&id=4.5%20Liquidity%20and%20Capital%20Resources) The Group optimized its financing structure and diversified funding channels, issuing green medium-term notes to lower financing costs and ensure capital needs; cash and cash equivalents remained sufficient, while bank loan balances decreased - The Group ensures its capital needs are met by issuing **RMB 1.3 billion green medium-term notes** and other means, lowering financing interest rates, and reasonably arranging project loans[76](index=76&type=chunk) - As of June 30, 2025, the Group's **cash and cash equivalents** amounted to **RMB 2,534.74 million**[76](index=76&type=chunk) [4.5.1 Cash and Cash Equivalents](index=38&type=section&id=4.5.1%20Cash%20and%20Cash%20Equivalents) As of the end of the reporting period, cash and cash equivalents amounted to RMB 2,534.74 million, primarily denominated in RMB, HKD, and USD - As of June 30, 2025, the Group's **cash and cash equivalents** amounted to **RMB 2,534.74 million**, primarily denominated in **RMB, HKD, and USD**[76](index=76&type=chunk) [4.5.2 Bank Loans](index=38&type=section&id=4.5.2%20Bank%20Loans) Bank loan balances decreased, mainly due to the issuance of green medium-term notes used to repay some bank loans; most loan interest is calculated at variable rates | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within One Year | 1,696,292 | 1,798,378 | | After One Year but Within Two Years | 2,147,994 | 2,092,128 | | After Two Years but Within Five Years | 6,812,406 | 7,112,740 | | After Five Years | 13,999,238 | 14,511,816 | | **Total** | **24,655,930** | **25,515,062** | - **Bank loan balances** were **RMB 24,655.93 million**, a decrease of **RMB 859.13 million** from the end of the previous year, mainly due to the **issuance of RMB 1.3 billion green medium-term notes** used to repay some bank loans[77](index=77&type=chunk) [4.5.3 Cash Flows](index=39&type=section&id=4.5.3%20Cash%20Flows) During the reporting period, net cash from operating activities slightly decreased, net cash used in investing activities significantly reduced, and net cash from financing activities shifted from inflow to outflow | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 914,849 | 938,672 | | Net Cash Used in Investing Activities | -548,702 | -1,306,090 | | Net Cash (Used in) / Generated from Financing Activities | -103,888 | 435,860 | | Net Increase in Cash and Cash Equivalents | 262,259 | 68,442 | | Cash and Cash Equivalents at End of Period | 2,534,737 | 3,163,418 | [4.5.3.1 Net Cash from Operating Activities](index=39&type=section&id=4.5.3.1%20Net%20Cash%20from%20Operating%20Activities) Net cash generated from operating activities slightly decreased, primarily due to a year-on-year reduction in renewable energy tariff subsidies received - **Net cash generated from operating activities** was **RMB 914.85 million**, a **RMB 23.82 million year-on-year decrease**, primarily due to a **year-on-year reduction in renewable energy tariff subsidies received**[79](index=79&type=chunk) [4.5.3.2 Net Cash Used in Investing Activities](index=39&type=section&id=4.5.3.2%20Net%20Cash%20Used%20in%20Investing%20Activities) Net cash used in investing activities significantly decreased, primarily due to reduced investment expenditures - **Net cash used in investing activities** was **RMB 548.70 million**, a **RMB 757.39 million year-on-year decrease**, primarily due to **reduced investment expenditures**[80](index=80&type=chunk) [4.5.3.3 Net Cash from Financing Activities](index=39&type=section&id=4.5.3.3%20Net%20Cash%20from%20Financing%20Activities) Net cash used in financing activities increased year-on-year, primarily due to a decrease in net proceeds from financing - **Net cash used in financing activities** was **RMB 103.89 million**, a **RMB 539.75 million year-on-year increase**, primarily due to a **decrease in net proceeds from financing**[81](index=81&type=chunk) [4.6 Commitments](index=40&type=section&id=4.6%20Commitments) As of the end of the reporting period, the Group's total capital commitments amounted to RMB 432.26 million, a significant decrease from the previous year-end | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contracted | 241,101 | 592,343 | | Approved but Not Contracted | 191,159 | 459,283 | | **Total** | **432,260** | **1,051,626** | [4.7 Foreign Exchange Risk](index=40&type=section&id=4.7%20Foreign%20Exchange%20Risk) The Group's foreign exchange risk primarily arises from receivables and payables denominated in USD and HKD from sales and purchases, but overall foreign exchange risk is not significant as most assets and transactions are RMB-denominated - The Group's foreign currency risk primarily arises from **receivables and payables denominated in USD and HKD** generated from sales and purchases[83](index=83&type=chunk) - As most assets and the majority of transactions are denominated in RMB, and domestic business expenditures are generally paid with RMB income, there is **no significant foreign exchange risk**[83](index=83&type=chunk) - During the reporting period, the Group **did not use financial instruments to hedge any foreign exchange risk**[84](index=84&type=chunk) [4.8 Contingent Liabilities](index=40&type=section&id=4.8%20Contingent%20Liabilities) As of the end of the reporting period, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[85](index=85&type=chunk) [4.9 Pledged Assets](index=40&type=section&id=4.9%20Pledged%20Assets) As of the end of the reporting period, the Group's right-of-use assets with a carrying amount of RMB 625.33 million were pledged as collateral for certain bank loans - As of June 30, 2025, the Group's **right-of-use assets** with a carrying amount of **RMB 625.33 million** were **pledged as collateral for certain bank loans**[86](index=86&type=chunk) [4.10 Material Investments, Acquisitions or Disposals](index=41&type=section&id=4.10%20Material%20Investments,%20Acquisitions%20or%20Disposals) During the reporting period, the Group had no material investments, acquisitions, or disposals, nor any definite plans for such activities - During the reporting period, the Group had **no material investments, acquisitions, or disposals**, nor any definite plans for material investments or acquisitions or disposals of capital[87](index=87&type=chunk) [4.11 Issuance of 2025 Green Medium-Term Notes](index=41&type=section&id=4.11%20Issuance%20of%202025%20Green%20Medium-Term%20Notes) The Company successfully issued RMB 1.3 billion green medium-term notes, with a coupon rate of 1.93%, used for debt repayment and project construction/operation, and obtained an AAA credit rating - On January 13, 2025, the Company issued **RMB 1.3 billion green medium-term notes** with a coupon rate of **1.93%** for a term of **five years**, unsecured, setting a new historical low for green Panda bond issuance rates nationwide[88](index=88&type=chunk) - The notes are primarily used to **repay interest-bearing debt** and **fund project construction and operation payments**[88](index=88&type=chunk) - The Company has received an **AAA credit rating** from Lianhe Credit Rating Co., Ltd[88](index=88&type=chunk) [4.12 Human Resources](index=41&type=section&id=4.12%20Human%20Resources) The Group highly values human resource system development, enhancing employees' comprehensive qualities and professional skills through competitive compensation, a comfortable work environment, multi-level training, and actively building diverse talent development platforms - The Group places high importance on human resource system construction and development, committed to fostering a talent development atmosphere that "respects labor, knowledge, talent, and creation"[89](index=89&type=chunk) - As of the end of the reporting period, the Group had **6,641 employees** (H1 2024: 6,386 employees), with total employee remuneration of approximately **RMB 461.8 million** (H1 2024: approximately RMB 367.3 million)[90](index=90&type=chunk) - The Group actively builds a multi-level, systematic, and professional training system and enhances its talent pool through internal cultivation, school-enterprise exchanges, and social recruitment[89](index=89&type=chunk) [Future Plans and Outlook](index=42&type=section&id=Future%20Plans%20and%20Outlook) This section outlines the Group's strategic priorities and operational plans for the second half of 2025, focusing on core business enhancement, new energy development, and port/building materials industry growth [5.1 Overall Strategy](index=42&type=section&id=5.1%20Overall%20Strategy) In H2 2025, the Group will continue to implement the 'focus on core business, unleash potential, and improve quality and efficiency' strategy, strengthening industrial synergy management and seeking healthy multi-segment development to achieve annual targets and safeguard shareholders' core interests - In H2 2025, the Group will continue to implement the overall strategy of "focusing on core business, unleashing potential, and improving quality and efficiency," strengthening industrial synergy management and seeking healthy multi-segment development[91](index=91&type=chunk) - The Group will strive to achieve its annual targets, promote high-quality sustainable and healthy development, and safeguard the core interests of the Company's shareholders[91](index=91&type=chunk) [5.2 Waste-to-Energy Core Business](index=42&type=section&id=5.2%20Waste-to-Energy%20Core%20Business) The Group will leverage its core management advantages in the waste-to-energy business, focusing on 'managing two volumes, optimizing operations, and increasing efficiency' to comprehensively enhance operational quality by improving capacity utilization, expanding diversified operations, and exploring green electricity resource applications - The waste-to-energy core business will focus on the key elements of "managing two volumes, optimizing operations, and increasing efficiency," leveraging its advantages in capacity utilization and operating rates to ensure core competitiveness[92](index=92&type=chunk) - The Group will improve diversified operations such as steam and electricity sales, co-processing, and green certificate trading, actively explore overseas markets for energy-saving equipment manufacturing, and explore scenario-based applications of green electricity resources to extend the industrial chain[92](index=92&type=chunk) - The Group will continuously summarize industry operating experience, create distinctive operating models like the "365 Club" and "500 Excellence Group," and comprehensively enhance operational quality[92](index=92&type=chunk) [5.3 New Energy Business](index=43&type=section&id=5.3%20New%20Energy%20Business) The new energy business will focus on market demand and product applications, increasing R&D innovation for high-end products and boosting self-production and sales; lithium iron phosphate cathode material projects will strengthen supply chain construction and product performance optimization, while lithium battery recycling will optimize process technology and expand recycling channels - The new energy business will focus on market demand and product applications, increasing R&D innovation for high-end products and boosting the share of self-produced and self-sold products[93](index=93&type=chunk) - The lithium iron phosphate cathode material project will prioritize strengthening raw material procurement, supply chain construction, product performance optimization, and enriching the product pipeline[93](index=93&type=chunk) - The lithium battery recycling and comprehensive utilization business will continuously optimize front-end and back-end process links, focus on technological breakthroughs, strengthen technological advantages, and expand recycling channels and marketing networks[93](index=93&type=chunk) [5.4 Port and Building Materials Industries](index=43&type=section&id=5.4%20Port%20and%20Building%20Materials%20Industries) Port logistics business will integrate resources, expand client channels, and upgrade berth grades for steady growth; new building materials industry will remain market-oriented, capture market share, and enhance added value through technological upgrades and product iteration - The port logistics business will integrate internal and external resources, expand high-quality client channels, seek volume expansion and price increases for steady growth, and upgrade berth grades[94](index=94&type=chunk) - The new building materials industry will remain market-oriented, capture market share, summarize technological improvement achievements, enrich product R&D and applications, leverage the advantages of product line iteration, and enhance added value[94](index=94&type=chunk) [Other Information](index=43&type=section&id=Other%20Information) This section covers corporate governance, interim dividend declaration, share registration closure, and other compliance-related disclosures for the reporting period [6.1 Interim Dividend](index=43&type=section&id=6.1%20Interim%20Dividend) The Board resolved to declare an interim dividend of HKD 0.10 per share for the six months ended June 30, 2025, payable on November 10, 2025 - The Board resolved to declare an **interim dividend of HKD 0.10 per share** for the six months ended June 30, 2025 (2024: nil)[95](index=95&type=chunk) - The interim dividend is expected to be paid on **November 10, 2025**, to shareholders whose names appear on the Company's register of members on **October 24, 2025**[95](index=95&type=chunk) [6.2 Closure of Register of Members](index=44&type=section&id=6.2%20Closure%20of%20Register%20of%20Members) To qualify for the interim dividend, the Company will suspend its share transfer registration from October 20 to October 24, 2025 - The Company will suspend its share transfer registration from **October 20 to October 24, 2025** (both dates inclusive)[96](index=96&type=chunk) - To qualify for the interim dividend, investors must deposit all share transfer documents, together with the relevant share certificates, with Hong Kong Central Share Registrar Limited for registration by **4:30 p.m. on October 17, 2025**[96](index=96&type=chunk) [6.3 Compliance with Corporate Governance Code](index=44&type=section&id=6.3%20Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the HKEX Listing Rules throughout the reporting period - The Company has complied with **all applicable code provisions of the Corporate Governance Code** as set out in Appendix C1 of the HKEX Listing Rules throughout the reporting period[97](index=97&type=chunk) [6.4 Standard Code for Securities Transactions by Directors](index=44&type=section&id=6.4%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code for securities transactions no less exacting than the Standard Code in Appendix C3 of the Listing Rules, and all Directors confirmed compliance during the reporting period - The Company has adopted a code for securities transactions **no less exacting than the Standard Code** for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[98](index=98&type=chunk) - Following specific inquiries by the Company, all Directors confirmed that they have **complied with the Standard Code and the Securities Dealing Code** throughout the reporting period[98](index=98&type=chunk) [6.5 Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=6.5%20Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held at period-end - During the reporting period, **neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities**[99](index=99&type=chunk) - As of the end of the reporting period, the Company **did not hold any treasury shares**[99](index=99&type=chunk) [6.6 Review of Interim Results](index=45&type=section&id=6.6%20Review%20of%20Interim%20Results) The Audit Committee has reviewed the Group's unaudited interim results and interim report for the six months ended June 30, 2025, and has no disagreement with the accounting treatments adopted - The Audit Committee has reviewed the Group's **unaudited interim results and interim report** for the six months ended June 30, 2025[100](index=100&type=chunk) - The Audit Committee has **no disagreement with the accounting treatments adopted** by the Company[100](index=100&type=chunk) [6.7 Material Events After Reporting Period](index=45&type=section&id=6.7%20Material%20Events%20After%20Reporting%20Period) No material events affecting the Group requiring disclosure have occurred from the end of the reporting period up to the date of this announcement - **No material events** affecting the Group requiring disclosure have occurred from the end of the reporting period up to the date of this announcement[101](index=101&type=chunk) [6.8 Publication of Interim Results Announcement and Interim Report](index=45&type=section&id=6.8%20Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the HKEX and Company websites, and the interim report will be published and dispatched to shareholders in due course - This results announcement is available on the **HKEX website** (http://www.hkexnews.hk) and the **Company's website** (http://www.conchventure.com)[102](index=102&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be published on the aforementioned websites and dispatched to shareholders in due course[102](index=102&type=chunk)