[Unaudited Consolidated Results](index=1&type=section&id=Unaudited%20Consolidated%20Results) This section presents the unaudited consolidated financial performance and position of the group for the period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The group's revenue from continuing operations increased by 1.69%, and gross profit grew by 10.58%, but profit attributable to owners significantly decreased by 92.38% due to one-off gains in the prior period | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 417,990 | 411,025 | +1.69% | | Cost of sales and services | (220,306) | (232,254) | -5.15% | | Gross profit | 197,684 | 178,771 | +10.58% | | Profit before tax | 74,213 | 85,046 | -12.74% | | Profit for the period from continuing operations | 44,866 | 65,768 | -31.79% | | Profit from discontinued operations | – | 41,365 | -100% | | Profit for the period | 44,866 | 107,133 | -58.12% | | Profit attributable to owners of the company | 4,788 | 62,942 | -92.38% | | Total comprehensive income for the period | 112,328 | 44,262 | +153.78% | | Basic earnings per share (continuing and discontinued operations) | 0.28 HK cents | 3.68 HK cents | -92.39% | | Basic earnings per share (continuing operations) | 0.28 HK cents | 1.21 HK cents | -76.86% | - The period's net profit decline was primarily due to a high base effect from a one-off gain on the disposal of subsidiary Guangdong Zhongyan Taike Construction Co., Ltd. in the prior period, and a decrease of approximately **HK$21,019,000** in profit contribution from associate Nanhai Changhai Power Generation Co., Ltd[45](index=45&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's total assets and liabilities increased, leading to a slight rise in the gearing ratio, while net current assets and current ratio significantly decreased | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 5,315,424 | 4,978,583 | +6.77% | | Current assets | 2,506,993 | 2,505,827 | +0.05% | | Current liabilities | 2,367,274 | 1,763,918 | +34.21% | | Net current assets | 139,719 | 741,909 | -81.18% | | Total assets less current liabilities | 5,455,143 | 5,720,492 | -4.57% | | Total equity | 1,898,862 | 1,837,245 | +3.35% | | Non-current liabilities | 3,556,281 | 3,883,247 | -8.42% | | Total assets | 7,822,417 | 7,484,410 | +4.51% | | Total liabilities | 5,923,555 | 5,647,165 | +4.89% | | Gearing ratio | 75.73% | 75.45% | +0.28pp | | Current ratio | 1.06x | 1.42x | -0.36x | | Cash and bank balances | 570,919 | 717,173 | -20.39% | - The group has secured sufficient bank credit facilities and extended the maturity date of convertible notes with a principal amount of approximately **HK$166,232,000** for three years to October 13, 2027, to maintain current and future liquidity[54](index=54&type=chunk) [Notes to the Condensed Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) This section provides detailed notes on the accounting policies, standards application, and specific financial statement items for the interim period [Basis of Preparation of Financial Statements](index=5&type=section&id=Basis%20of%20Preparation%20of%20Financial%20Statements) The interim condensed consolidated financial statements are prepared based on historical cost, in accordance with HKAS 34 and Listing Rules, and have been reviewed by the audit committee - The financial statements are prepared on a historical cost basis, except for certain properties and financial instruments measured at fair value, revalued amounts, or amortized cost[8](index=8&type=chunk) - These interim condensed consolidated financial statements should be read in conjunction with the group's annual financial statements for the year ended December 31, 2024[8](index=8&type=chunk) [Application of New and Revised Hong Kong Financial Reporting Standards](index=5&type=section&id=Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The accounting policies adopted are consistent with the prior year, with no significant impact from HKAS 21 (Revised) and no early adoption of other new standards - The adoption of HKAS 21 (Revised) 'Lack of Exchangeability' has no significant impact on the group's financial performance or position for the current or prior accounting periods[10](index=10&type=chunk) - The group has not early adopted any new and revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[11](index=11&type=chunk) [Revenue](index=6&type=section&id=Revenue) The group's total revenue increased by 1.69%, primarily driven by growth in elderly care and healthcare and finance lease consulting services, while big data and civil explosives blasting engineering revenue declined | Revenue Category | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Big data business platform construction and operation income | 744 | 2,878 | -74.15% | | Finance lease consulting service income | 52,731 | 39,599 | +33.17% | | Civil explosives business blasting engineering income | 16,058 | 24,515 | -34.50% | | Elderly care and healthcare business operation income | 52,212 | 46,521 | +12.23% | | Sales of emulsion explosives | 87,828 | 85,521 | +2.70% | | Elderly care and healthcare business service income | 57,189 | 50,376 | +13.53% | | Big data business technical service income | 861 | 204 | +322.06% | | Hotel rental income | 4,541 | 4,713 | -3.65% | | Investment property rental income | 5,761 | 3,633 | +58.57% | | Interest income from finance leases | 140,065 | 149,484 | -6.29% | | **Total Revenue** | **417,990** | **411,025** | **+1.69%** | - Revenue sources include elderly care and healthcare business, big data business, finance lease business, civil explosives business, and hotel and property investment income[12](index=12&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The group operates five segments: elderly care and healthcare, big data, finance lease, civil explosives, and hotel and property investment, with finance lease being the largest contributor to revenue and profit - The group is currently divided into five operating business segments: elderly care and healthcare business, big data business, finance lease business, civil explosives business, and hotel and property investment[15](index=15&type=chunk) - Effective 2025, property investment and hotel businesses are combined into a single segment, and comparative segment information has been reclassified[16](index=16&type=chunk) Segment Revenue and Results | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | Revenue Change (%) | 2025 Results (HK$ thousand) | 2024 Results (HK$ thousand) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Elderly care and healthcare business | 109,401 | 96,897 | +12.90% | 3,386 | 7,677 | -55.89% | | Big data business | 1,605 | 3,082 | -47.92% | (3,283) | (5,297) | +38.02% | | Finance lease business | 192,796 | 189,083 | +1.96% | 93,726 | 87,609 | +6.98% | | Civil explosives business | 103,886 | 111,720 | -7.01% | 26,570 | 21,992 | +20.82% | | Hotel and property investment | 10,302 | 10,243 | +0.58% | 665 | (582) | Turned profitable | | **Total** | **417,990** | **411,025** | **+1.69%** | **121,064** | **111,399** | **+8.68%** | Segment Assets and Liabilities | Segment Assets/Liabilities | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total segment assets | 6,633,003 | 6,164,195 | +7.60% | | Total segment liabilities | 4,882,641 | 4,739,314 | +3.02% | - Most of the group's businesses (elderly care and healthcare, big data, finance lease, civil explosives, and hotel and property investment) are located in mainland China, while property investment is in mainland China and Hong Kong[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Other Operating Income](index=11&type=section&id=Other%20Operating%20Income) Other operating income for the period, primarily from bank interest, government grants, and financial asset dividends, decreased compared to the prior period | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 2,573 | 6,851 | -62.44% | | Government direct grants | 261 | 1,402 | -81.38% | | Recognized in deferred income | 241 | – | N/A | | Dividend income from financial assets at fair value through profit or loss | 608 | 618 | -1.62% | | Interest income from wealth management products | – | 126 | -100% | | Income from lending emulsion matrix and industrial detonating cord production capacity | – | 2,322 | -100% | [Finance Costs](index=11&type=section&id=Finance%20Costs) Total finance costs decreased by 7.23% year-on-year, mainly due to lower interest expenses on bank loans and convertible notes, despite a significant increase in other loan interest | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Handling fees | – | 2,081 | -100% | | Bank loan interest | 12,919 | 25,232 | -48.79% | | Convertible note interest | 5,895 | 8,291 | -28.89% | | Lease liabilities interest | 786 | 120 | +555.00% | | Loans from direct holding company interest | 1,136 | 2,293 | -50.46% | | Other loan interest | 15,673 | 36 | +43436.11% | | **Total Finance Costs** | **36,409** | **39,240** | **-7.23%** | [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 52.23% year-on-year, primarily due to higher provisions for PRC corporate income tax, with no Hong Kong profits tax provision | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Provision for PRC corporate income tax | 31,076 | 20,713 | +50.03% | | Over-provision in prior years | (844) | (1,559) | +45.86% | | Temporary differences for the period | (885) | 124 | -813.71% | | **Total Income Tax Expense** | **29,347** | **19,278** | **+52.23%** | - PRC subsidiaries are subject to corporate income tax at a rate of **25%**, while Hong Kong profits tax is **16.5%** (or **8.25%** for the first **HK$2,000,000**), with no assessable profits in Hong Kong for the period[27](index=27&type=chunk)[28](index=28&type=chunk) [Profit from Discontinued Operations](index=13&type=section&id=Profit%20from%20Discontinued%20Operations) The group completed the disposal of 72% equity in Guangdong Zhongyan Taike Construction Co., Ltd. on March 1, 2024, resulting in a profit from discontinued operations of **HK$41,365,000** in the prior period - The group completed the disposal of **72%** equity in Guangdong Zhongyan Taike Construction Co., Ltd. on March 1, 2024, discontinuing its industrial park and property development business[29](index=29&type=chunk)[30](index=30&type=chunk) Profit from Discontinued Operations | Item | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | | Loss from industrial park and property development business | (7,663) | | Profit on disposal of a subsidiary | 49,028 | | **Profit for the period from discontinued operations** | **41,365** | [Profit for the Period Has Been Arrived at After Charging/(Crediting)](index=15&type=section&id=Profit%20for%20the%20Period%20Has%20Been%20Arrived%20at%20After%20Charging%2F%28Crediting%29) Profit for the period was impacted by increased depreciation of property, plant and equipment, higher amortization of intangible assets, and rising staff costs, partially offset by reduced impairment provisions for finance lease receivables | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Auditor's remuneration (audit services) | (650) | (600) | +8.33% | | Amortization of intangible assets | (456) | (375) | +21.60% | | Depreciation of property, plant and equipment | (18,234) | (15,921) | +14.53% | | Net exchange loss | (5,940) | (4,915) | +20.85% | | Provision for expected credit losses on finance lease receivables | (5,660) | (6,492) | -12.82% | | Cost of inventories recognized as expense | (102,497) | (114,458) | -10.45% | | Total staff costs | (91,296) | (88,978) | +2.60% | | Total rental income from investment properties | 10,302 | 8,346 | +23.44% | [Dividends](index=15&type=section&id=Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, but a final dividend of **HK0.58 cents** per share was paid in July 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[33](index=33&type=chunk)[64](index=64&type=chunk) - At the Annual General Meeting held on June 26, 2025, a final dividend of **HK0.58 cents** per share, totaling approximately **HK$9,932,000**, was approved and paid on July 31, 2025[33](index=33&type=chunk) [Earnings Per Share](index=16&type=section&id=Earnings%20Per%20Share) Basic earnings per share for the six months ended June 30, 2025, significantly decreased to **HK0.28 cents** from **HK3.68 cents** in the prior period, with no diluted EPS presented due to anti-dilutive effects | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic earnings per share (continuing and discontinued operations) | 0.28 HK cents | 3.68 HK cents | | Basic earnings per share (continuing operations) | 0.28 HK cents | 1.21 HK cents | - Basic earnings per share is calculated based on profit attributable to owners of the company of approximately **HK$4,788,000** (2024: **HK$62,942,000**) and **1,712,329,142** ordinary shares in issue[34](index=34&type=chunk) - Diluted earnings per share is not presented for the current and prior periods due to the anti-dilutive effect of the exercise of convertible notes[34](index=34&type=chunk) [Finance Lease Receivables](index=16&type=section&id=Finance%20Lease%20Receivables) As of June 30, 2025, the group's total finance lease receivables increased by 8.67%, with both current and non-current portions showing growth | Classification | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current | 1,362,142 | 1,254,955 | +8.54% | | Non-current | 3,588,796 | 3,301,054 | +8.72% | | **Total** | **4,950,938** | **4,556,009** | **+8.67%** | [Trade and Other Receivables](index=16&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables increased by 31.52% as of June 30, 2025, with trade receivables growing by 25.68%, and the group grants an average credit period of 90 days to customers | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 107,020 | 85,148 | +25.68% | | Other receivables, deposits and prepayments | 76,619 | 54,488 | +40.62% | | **Total** | **183,639** | **139,636** | **+31.52%** | - The group grants an average credit period of **90 days** to its customers[36](index=36&type=chunk) [Trade and Other Payables](index=17&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased by 7.71% year-on-year, mainly due to a reduction in other payables, with supplier credit terms ranging from 30 to 90 days | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 18,730 | 18,478 | +1.36% | | Other payables | 180,286 | 197,160 | -8.56% | | **Total** | **199,016** | **215,638** | **-7.71%** | - The credit period granted by suppliers to the group ranges from **30 to 90 days**[37](index=37&type=chunk) [Deferred Income](index=17&type=section&id=Deferred%20Income) Deferred income primarily represents government grants received by the group's PRC subsidiaries for construction and revenue-generating projects - Deferred income refers to government grants received by subsidiaries established in mainland China related to certain construction and revenue-generating projects[39](index=39&type=chunk) [Commitments](index=18&type=section&id=Commitments) Green Finance Leasing, a non-wholly owned subsidiary, entered into new finance lease agreements totaling approximately **RMB430,000,000** (approximately **HK$470,000,000**) with several PRC limited liability companies in July-August 2025 - Green Finance Leasing entered into multiple finance lease agreements with several PRC limited liability companies between July and August 2025, with a total consideration of approximately **RMB430,000,000** (equivalent to approximately **HK$470,000,000**)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [Comparative Figures](index=18&type=section&id=Comparative%20Figures) Certain comparative figures have been restated to conform to the current period's presentation - Certain comparative figures have been restated to conform to the current period's presentation[43](index=43&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) This section provides an overview of the group's operational performance across its various business segments during the reporting period [Overall Performance](index=19&type=section&id=Overall%20Performance) Despite a complex macroeconomic environment, the group achieved a 1.69% increase in total revenue and an 8.68% rise in operating profit from continuing operations, though net profit declined due to prior period one-off gains - The group's total revenue was approximately **HK$417,990,000**, representing a year-on-year increase of **1.69%**[44](index=44&type=chunk) - Revenue growth was primarily driven by the elderly care and healthcare business (contributing an increase of approximately **HK$12,504,000**) and the finance lease business (contributing an increase of approximately **HK$3,713,000**), partially offsetting the decline in civil explosives business revenue[44](index=44&type=chunk) - Operating profit from continuing operations across all segments collectively increased to approximately **HK$121,064,000**, an increase of approximately **8.68%**[44](index=44&type=chunk) - Net profit for the period declined year-on-year to approximately **HK$44,866,000**, mainly due to the one-off gain from the disposal of a subsidiary and reduced profit contribution from an associate in the prior period[45](index=45&type=chunk) [Elderly Care and Healthcare Business](index=20&type=section&id=Elderly%20Care%20and%20Healthcare%20Business) The elderly care and healthcare business, a strategic core, expanded its medical and elderly care bed capacity, achieving a 12.90% revenue growth, despite a temporary profit decline due to strategic upfront investments - The group was included as a service provider under the 'Guangdong Residential Care Services Scheme' by the Hong Kong Social Welfare Department on February 20, 2025[46](index=46&type=chunk) Elderly Care and Healthcare Business Indicators | Indicator | June 30, 2025 | | :--- | :--- | | Total medical and elderly care beds | 4,390 beds | | Medical care beds | 455 beds | | Medical care bed utilization rate | 85.93% | | Elderly care beds | 3,435 beds (year-on-year increase of 727 beds, +26.85%) | | Elderly care bed occupancy rate | 69.98% | | Elderly care beds under construction | 500 beds | - Operating revenue from the elderly care and healthcare business was approximately **HK$109,401,000**, a year-on-year increase of **12.90%**[47](index=47&type=chunk) - Operating profit was approximately **HK$3,386,000**, a year-on-year decrease of **55.89%**, primarily due to increased strategic upfront investments in elderly care infrastructure and business expansion[47](index=47&type=chunk) [Finance Lease Business](index=21&type=section&id=Finance%20Lease%20Business) The finance lease business, focusing on environmental protection, achieved a 6.98% increase in operating profit and successfully issued the "First Green SME Support Corporate Bond" despite a challenging macroeconomic environment - The company focuses on niche segments within environmental protection and municipal environmental industries, maintaining net profit growth despite a downturn in the macroeconomic environment[48](index=48&type=chunk) - Successfully issued the 'First Green SME Support Corporate Bond in China' in mid-August 2025[48](index=48&type=chunk) - Operating profit increased by approximately **HK$6,117,000** to approximately **HK$93,726,000**, a **6.98%** increase[48](index=48&type=chunk) [Technology Business](index=21&type=section&id=Technology%20Business) The technology business saw a 47.92% decline in operating revenue due to the mainland's traditional manufacturing sector, but managed to narrow its operating loss by 38.02% through strict cost control and is now shifting towards "technology-enabled medical and elderly care" and digital education - Operating revenue was approximately **HK$1,605,000**, a year-on-year decrease of **47.92%**, primarily affected by the unfavorable economic conditions in mainland China's traditional manufacturing sector[49](index=49&type=chunk) - Operating loss was approximately **HK$3,283,000**, a year-on-year decrease of **38.02%**, attributed to strict cost control[49](index=49&type=chunk) - The company has clarified its strategic direction, focusing on 'technology-enabled medical and elderly care' to deeply integrate information technology with medical and elderly care services, and is exploring the digital education sector, having signed an education big data project[49](index=49&type=chunk) [Civil Explosives Business](index=22&type=section&id=Civil%20Explosives%20Business) The civil explosives business experienced a 7.01% decline in operating revenue due to reduced market demand, yet achieved a 20.82% increase in operating profit through technical improvements, lean management, and cost control - Operating revenue was approximately **HK$103,886,000**, a year-on-year decrease of **7.01%**, affected by declining demand in the civil explosives market[50](index=50&type=chunk) - Operating profit was approximately **HK$26,570,000**, a year-on-year increase of **20.82%**, attributed to effective operational management and cost control[50](index=50&type=chunk) - The company obtained a Class A blasting operation qualification in July 2025, proactively increased the proportion of mixed explosives production capacity, and actively sought strategic cooperation with industry leaders[50](index=50&type=chunk) [Hotel and Property Investment](index=22&type=section&id=Hotel%20and%20Property%20Investment) Hotel rental income decreased by 31.30% due to market conditions, leading to a decline in operating profit, while total rental income from Zhongkong Building significantly increased by 58.57%, and Hong Kong property rental income remained stable - Hotel rental income decreased by approximately **31.30%** year-on-year, with a corresponding reduction in rental income of approximately **HK$2,069,000**, and operating profit decreased by **39.77%** to approximately **HK$1,549,000**[51](index=51&type=chunk) - Total rental income from Zhongkong Building significantly increased by **58.57%** year-on-year to approximately **HK$5,461,000**, with occupancy rates and rental levels higher than comparable properties in the vicinity[51](index=51&type=chunk) - Rental income from Hong Kong properties remained at **HK$300,000** for the period, consistent with the prior period[51](index=51&type=chunk) [Share of Profits from an Associate](index=23&type=section&id=Share%20of%20Profits%20from%20an%20Associate) Profit contribution from associate Nanhai Changhai Power Generation Co., Ltd. significantly decreased by 79.26% due to the shutdown of its production equipment, weakening its power supply capacity - Associate Nanhai Changhai Power Generation Co., Ltd. contributed approximately **HK$5,501,000** in profit to the group, a decrease of approximately **HK$21,019,000** from the prior period, representing a year-on-year decline of **79.26%**[52](index=52&type=chunk) - The decline in profit was mainly due to the shutdown of two production units at the associate, significantly weakening its power supply capacity[52](index=52&type=chunk) [Financial Position and Analysis](index=23&type=section&id=Financial%20Position%20and%20Analysis) This section analyzes the group's financial health, including key indicators, asset pledges, and exposure to foreign exchange risks [Overall Financial Indicators](index=23&type=section&id=Overall%20Financial%20Indicators) As of June 30, 2025, total assets and liabilities increased, with the gearing ratio slightly rising to 75.73%, while net current assets and the current ratio significantly decreased, though liquidity is maintained through credit facilities and convertible bond extensions | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | HK$7,822,417,000 | HK$7,484,410,000 | | Total liabilities | HK$5,923,555,000 | HK$5,647,165,000 | | Gearing ratio | 75.73% | 75.45% | | Net assets | HK$1,898,862,000 | HK$1,837,245,000 | | Equity attributable to owners per share | HK$0.66 | HK$0.63 | | Net current assets | HK$139,719,000 | HK$741,909,000 | | Current ratio | 1.06x | 1.42x | | Bank deposits and cash | HK$570,919,000 | HK$717,173,000 | - The group has secured sufficient bank credit facilities and extended the maturity date of convertible bonds with a principal amount of approximately **HK$166,232,000** for three years to October 13, 2027, to maintain current and future liquidity[54](index=54&type=chunk) [Pledge of Assets](index=23&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the group pledged self-use and investment properties, a 26.794% equity interest in an associate, and finance lease receivables, totaling approximately **HK$4,702,664,000** in book value - As of June 30, 2025, the group pledged self-use and investment properties, a **26.794%** equity interest in an associate, and finance lease receivables, with a total book value of approximately **HK$4,702,664,000**[55](index=55&type=chunk) - Of this, approximately **HK$4,215,762,000** in finance lease receivables has been pledged to banks as collateral for the group's bank borrowings[55](index=55&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=Foreign%20Exchange%20Risk) The group holds RMB-denominated monetary assets and liabilities, exposing it to exchange rate fluctuations, and has established monitoring mechanisms to mitigate this risk - The group holds certain RMB-denominated monetary assets and liabilities, which may expose it to exchange losses or gains due to RMB appreciation or depreciation[56](index=56&type=chunk) - The group has established a foreign exchange risk monitoring mechanism, and the Board will continue to closely monitor foreign exchange market dynamics and take effective measures to mitigate risks as appropriate[56](index=56&type=chunk) [Outlook](index=24&type=section&id=Outlook) This section outlines the group's strategic vision, core strategies, and specific business segment outlooks in response to macroeconomic trends and market opportunities [Macroeconomic Outlook](index=24&type=section&id=Macroeconomic%20Outlook) Global economic instability persists, and the domestic economy faces challenges like insufficient demand and real estate adjustments, yet China's rapid aging population and policy support present significant opportunities for the silver economy - The 'unstable state' of the global economy is expected to continue, with the domestic economy facing challenges such as insufficient demand and real estate sector adjustments[57](index=57&type=chunk) - China's rapid population aging is a definitive macroeconomic trend, with unprecedented national policy support, creating immense market opportunities for the silver economy[57](index=57&type=chunk) [Strategic Direction and Core Strategies](index=24&type=section&id=Strategic%20Direction%20and%20Core%20Strategies) The group is committed to becoming a leading technology-enabled elderly care service provider in the GBA, optimizing its "1+X" industrial structure with elderly care as the core, expanding through M&A and self-investment, and strengthening the resilience and risk control of supporting businesses - The group will adhere to its established strategic direction, striving to become a leading technology-enabled elderly care service provider in the Guangdong-Hong Kong-Macao Greater Bay Area[58](index=58&type=chunk) - Deepen the optimization of the '1+X' industrial structure, with elderly care and healthcare as the core business, adopting an expansion strategy that combines 'industrial mergers and acquisitions with self-investment development'[58](index=58&type=chunk) - Supporting businesses will enhance operational resilience and risk resistance by 'deeply exploring existing markets, precisely cultivating new growth points, and strengthening risk control'[58](index=58&type=chunk) - Strengthen lean operations and risk control systems, deepen cost reduction and efficiency improvement, and enhance cash flow management and compliant operations[58](index=58&type=chunk) [Elderly Care and Healthcare Business Outlook](index=25&type=section&id=Elderly%20Care%20and%20Healthcare%20Business%20Outlook) As a core segment, the elderly care and healthcare business will shift from scale expansion to quality and efficiency, implementing a "medical-elderly care services" and "scientific innovation for health" dual-driven model, promoting standardization, and capitalizing on opportunities for Hong Kong residents seeking elderly care in the North - The development path will transition from scale expansion to quality improvement and efficiency optimization, achieving high-quality, sustainable growth[59](index=59&type=chunk) - Deeply implement the 'medical-elderly care services' and 'scientific innovation for health' dual-driven development model, building a new pattern of synergistic development[59](index=59&type=chunk) - Comprehensively advance standardization and brand building, reconstruct a tiered and precise elderly care service system, with a focus on establishing specialized service areas for incapacitated seniors and cognitive impairment care[59](index=59&type=chunk) - Seize the historic opportunity of 'Hong Kong residents seeking elderly care in the North,' deeply cultivate the Guangdong-Hong Kong-Macao Greater Bay Area market, and build a 'Hong Kong-style technology-enabled elderly care' service brand[59](index=59&type=chunk) [Technology Business Outlook](index=25&type=section&id=Technology%20Business%20Outlook) The technology business will focus on cultivating "medical and elderly care technology industrialization" in the short term and creating long-term value, developing data-driven, intelligent elderly care new formats, and actively exploring the digital education industry for new profit growth - The technology business will focus on cultivation in the short term and value creation in the long term, concentrating on the core track of 'medical and elderly care technology industrialization'[60](index=60&type=chunk) - Cultivate and expand new technology-enabled medical and elderly care business models characterized by data-driven and intelligent collaboration, building a digital elderly care ecosystem covering health management, emergency response, smart care, and intelligent learning[60](index=60&type=chunk) - Strategically invest in and acquire businesses in the scientific innovation for health sector, ensuring synergy with the core business, actively incubate emerging businesses, and deeply explore the digital education industry[60](index=60&type=chunk) [Finance Lease Business Outlook](index=26&type=section&id=Finance%20Lease%20Business%20Outlook) The finance lease business will continue to be a stable profit contributor, maintaining differentiated competition by focusing on advantageous niche areas like water supply, sewage, and urban heating, while enhancing operational efficiency, expanding financing channels, and strengthening risk control - The finance lease business will adhere to differentiated competition, upholding the principles of 'market-oriented, specialized, and differentiated,' focusing on advantageous niche areas such as water supply, sewage, cogeneration, and urban heating[61](index=61&type=chunk) - Enhance operational efficiency, optimize approval processes, improve capital deployment efficiency, broaden financing channels, reduce funding costs, and perfect the risk control system to ensure asset quality[61](index=61&type=chunk) [Civil Explosives Business Outlook](index=26&type=section&id=Civil%20Explosives%20Business%20Outlook) The civil explosives business will proactively transform in line with policy guidance, optimize its product structure, pursue strategic collaborations with industry leaders, actively expand blasting operations, and continue to deepen cost reduction, efficiency improvement, and intelligent manufacturing upgrades - Align with policies, proactively transform, deeply optimize product structure, advance strategic cooperation with industry leaders, and ensure packaging capacity and sales[62](index=62&type=chunk) - Actively expand blasting operations, unleash mixed explosives production capacity, and continuously deepen cost reduction and efficiency improvement, 7S lean management, and intelligent transformation of production lines[62](index=62&type=chunk) [Conclusion](index=26&type=section&id=Conclusion) The group is at a critical juncture of strategic transformation, with rapid growth in its core business and stable operations in supporting segments, demonstrating increasing intrinsic value despite temporary net profit pressure from non-recurring factors - The group's core businesses are growing rapidly, supporting businesses are operating steadily, and the increase in core operating profit indicates a continuous enhancement of the group's intrinsic value[62](index=62&type=chunk) - The group has successfully anchored itself in the golden track of the silver economy, poised to continuously create returns for shareholders[62](index=62&type=chunk) - Management will continue to strengthen strategic execution, refined operational capabilities, and prudent risk management, driving the group towards high-quality sustainable growth[62](index=62&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This section covers additional corporate information, including employee details, dividend policy, share transactions, corporate governance, and board composition [Employees](index=27&type=section&id=Employees) As of June 30, 2025, the group had approximately 1,280 employees, with remuneration determined by responsibilities and performance, and educational allowances provided - The group had approximately **1,280** employees (December 31, 2024: **1,232** employees)[63](index=63&type=chunk) - Employee remuneration is determined by responsibilities and performance, and educational allowances are provided to all employees[63](index=63&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[64](index=64&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[65](index=65&type=chunk) [Corporate Governance](index=27&type=section&id=Corporate%20Governance) The company prioritizes corporate governance and has adopted and complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - The company has adopted and complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the six months ended June 30, 2025[66](index=66&type=chunk) [Model Code for Securities Transactions by Directors](index=27&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors have confirmed their compliance with the requirements of the Model Code throughout the six months ended June 30, 2025[67](index=67&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the group's accounting principles, audit, risk management, internal controls, and financial reporting matters, including the unaudited consolidated financial statements for the period - The Audit Committee, comprising three independent non-executive directors of the company, has reviewed the accounting principles and practices adopted by the group with management, and discussed matters related to audit, risk management, internal controls, and financial reporting[68](index=68&type=chunk) - The Audit Committee has generally reviewed the unaudited consolidated financial statements for the six months ended June 30, 2025[68](index=68&type=chunk) [Board of Directors](index=28&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors consists of two executive directors (Mr. He Xiangming, Chairman; Mr. Fu Weiqiang, President) and three independent non-executive directors (Mr. Chan Kwok Wai, Mr. Peng Xinyu, and Ms. Lin Junxian) - The Board of Directors comprises two executive directors (Mr. He Xiangming as Chairman, Mr. Fu Weiqiang as President) and three independent non-executive directors (Mr. Chan Kwok Wai, Mr. Peng Xinyu, and Ms. Lin Junxian)[69](index=69&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 ZG Group 找鋼產業互聯集團 （於開曼群島註冊成立以不同投票權控制的有限公司，以ZGW之名稱於香港進行業務） （股份代號：6676） （權證代號：2572） 截至2025年6月30日止六個月的 中期業績公告 找鋼產業互聯集團（於開曼群島註冊成立以不同投票權控制的有限公司，以ZGW 之名稱於香港進行業務）（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公 司、其附屬公司及綜合聯屬實體（「本集團」）截至2025年6月30日止六個月（「報告 期」）的未經審核中期綜合業績，連同2024年同期的比較數字。此等中期業績乃根 據國際財務報告準則（「國際財務報告準則」）編製，並經董事會的審核委員會（「審 核委員會」）審閱。本公司獨立核數師德勤•關黃陳方會計師行已根據香港審閱準則 第2410號「由實體的獨立核數師執行中期財務資料審閱」審閱我們截至2025年6月 30日止六個月的中期財務資料。 在本公告中，「 ...

[Financial Highlights](index=1&type=section&id=I.%20Financial%20Highlights) This section provides a concise overview of the company's key financial performance indicators for the period [Key Financial Indicators](index=1&type=section&id=1.1%20Key%20Financial%20Indicators) For the six months ended June 30, 2025, Green Source Group's revenue increased by 22.2% year-on-year to RMB 3,095.7 million, profit for the period increased by 66.9% to RMB 110.1 million, basic earnings per share grew by 81.3% to RMB 0.29, and gross profit margin improved by 1.6 percentage points to 13.6% | Indicator | For the six months ended June 30, 2025 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | | Revenue | 3,095.7 | 22.2% | | Profit for the period | 110.1 | 66.9% | | Basic earnings per share (RMB) | 0.29 | 81.3% | | Gross profit margin | 13.6% | 1.6 percentage points | [Condensed Consolidated Financial Statements](index=2&type=section&id=II.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [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 company's revenue increased to RMB 3,095,669 thousand, gross profit increased to RMB 419,720 thousand, operating profit significantly grew to RMB 118,110 thousand, and profit for the period reached RMB 110,116 thousand | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,095,669 | 2,533,904 | | Cost of sales | (2,675,949) | (2,230,962) | | Gross profit | 419,720 | 302,942 | | Operating profit | 118,110 | 54,362 | | Profit for the period | 110,116 | 65,988 | | Basic earnings per share (RMB) | 0.29 | 0.16 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.2%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's profit for the period was RMB 110,116 thousand, with total comprehensive income of RMB 109,291 thousand, primarily influenced by exchange differences from overseas operations and the company's own exchange differences | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 110,116 | 65,988 | | Exchange differences arising from translation of overseas operations | 7,803 | (4,024) | | Exchange differences from translation of the Company | (8,471) | 4,912 | | Total comprehensive income for the period | 109,291 | 66,876 | [Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to RMB 5,384,029 thousand, net current assets increased to RMB 302,291 thousand, total equity was RMB 1,580,138 thousand, and total liabilities were RMB 3,803,891 thousand | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total assets | 5,384,029 | 4,324,343 | | Net current assets | 302,291 | 151,123 | | Total equity | 1,580,138 | 1,497,732 | | Total liabilities | 3,803,891 | 2,826,611 | [Notes to the Financial Statements](index=6&type=section&id=III.%20Notes%20to%20the%20Financial%20Statements) This section provides detailed notes and explanations supporting the condensed consolidated financial statements [General Information](index=6&type=section&id=3.1%20General%20Information) The company was incorporated in the Cayman Islands in 2009, primarily engaged in the electric vehicle business in China, with Mr. Ni Jie and Ms. Hu Jihong as ultimate controlling shareholders. The condensed interim consolidated financial information is unaudited and presented in RMB thousand - The company was incorporated as an exempted company in the Cayman Islands on February 18, 2009[9](index=9&type=chunk) - The Group is principally engaged in the electric vehicle business in the People's Republic of China[10](index=10&type=chunk) - This condensed consolidated interim financial information has not been audited or reviewed[11](index=11&type=chunk) [Accounting Policies](index=6&type=section&id=3.2%20Accounting%20Policies) This interim financial information is prepared in accordance with HKAS 34 and follows the accounting policies adopted in the 2024 annual financial statements, except for changes expected to be reflected in the 2025 annual financial statements. Several new or revised standards effective January 1, 2025, have no significant impact on the Group's financial position and operating results - The interim financial information is prepared using the same accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[12](index=12&type=chunk) - The adoption of new or revised HKFRSs effective January 1, 2025, has no significant impact on the Group's financial position and operating results and requires no retrospective adjustments[14](index=14&type=chunk) - HKFRS 18 (Presentation and Disclosure in Financial Statements) is expected to primarily affect the presentation of the consolidated statement of comprehensive income, and the Group is still assessing its impact[14](index=14&type=chunk) [Basis of Preparation](index=6&type=section&id=3.2.1%20Basis%20of%20Preparation) This interim financial information is prepared in accordance with the applicable disclosure provisions of the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 issued by the Hong Kong Institute of Certified Public Accountants, and should be read in conjunction with the 2024 annual financial statements - This interim financial information is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard 34 – Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[12](index=12&type=chunk) - The condensed consolidated interim financial information and related notes do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements for the year ended December 31, 2024, prepared in accordance with Hong Kong Financial Reporting Standards[13](index=13&type=chunk) [Changes in Accounting Policies and Disclosures](index=7&type=section&id=3.2.2%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) Several new or revised standards effective January 1, 2025, have no significant impact on the Group's financial position and operating results. HKFRS 18 (Presentation and Disclosure in Financial Statements) may primarily affect the presentation of the consolidated statement of comprehensive income, and the Group is still assessing its impact - Several new or revised standards are applicable to this reporting period; the adoption of these new standards and amendments has no significant impact on the Group’s financial position and operating results and requires no retrospective adjustments[14](index=14&type=chunk) - Based on the preliminary assessment made by the Directors, these standards and amendments are not expected to have a significant impact on the Group’s financial performance and position, except for HKFRS 18, which may primarily affect the presentation of the consolidated statement of comprehensive income, and the Group is still assessing its impact[14](index=14&type=chunk) [Revenue and Segment Reporting](index=8&type=section&id=3.3%20Revenue%20and%20Segment%20Reporting) For the six months ended June 30, 2025, the company's revenue primarily derived from goods sales, with a smaller proportion from service revenue. The Group has no single customer accounting for more than 10% of revenue and operates only one reportable operating segment, primarily engaged in the development, manufacturing, and sales of electric vehicles and related accessories in China | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of goods | 3,077,791 | 2,512,539 | | Revenue from services | 17,878 | 21,365 | | **Total Revenue** | **3,095,669** | **2,533,904** | - For the six months ended June 30, 2024 and 2025, no single customer accounted for more than 10% of the Group's revenue[18](index=18&type=chunk) - The Group has only one reportable operating segment, responsible for the development, manufacturing, and sales of electric vehicles and related accessories[19](index=19&type=chunk) [Disaggregation of Revenue from Contracts with Customers](index=8&type=section&id=3.3.1%20Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) For the six months ended June 30, 2025, revenue from sales of goods was RMB 3,077,791 thousand, and revenue from services was RMB 17,878 thousand, with the vast majority of revenue recognized at a point in time | Revenue Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of goods | 3,077,791 | 2,512,539 | | Revenue from services | 17,878 | 21,365 | | **Total Revenue** | **3,095,669** | **2,533,904** | | Revenue recognized at a point in time | 3,077,791 | 2,512,539 | | Revenue recognized over a period of time | 17,878 | 21,365 | [Segment Information and Geographical Information](index=8&type=section&id=3.3.2%20Segment%20Information%20and%20Geographical%20Information) The Group has only one reportable operating segment, which is the development, manufacturing, and sales of electric vehicles and related accessories. Geographical information is not presented as over 90% of revenue, operating profit, non-current assets, and liabilities are derived from China - The Group has only one reportable operating segment, responsible for the development, manufacturing, and sales of electric vehicles and related accessories[19](index=19&type=chunk) - As over 90% of the Group's revenue and operating profit are derived from electric vehicle sales in China, and over 90% of the Group's non-current assets and liabilities are located in China, no geographical information is presented in accordance with HKFRS 8 Operating Segments[20](index=20&type=chunk) [Other Income and Expenses](index=9&type=section&id=3.4%20Other%20Income%20and%20Expenses) For the six months ended June 30, 2025, other income was RMB 37,150 thousand, primarily comprising government grants and interest income from time deposits, showing a slight year-on-year decrease. Other expenses were RMB (3,591) thousand, a year-on-year decrease | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **Other Income** | | | | Government grants | 23,237 | 27,149 | | Interest income from time deposits | 4,508 | 871 | | Total other income | 37,150 | 38,103 | | **Other Expenses** | | | | Cost of obsolete materials and work-in-progress | (2,025) | (2,461) | | Total other expenses | (3,591) | (4,761) | - Government grants mainly include general support from local governments, employment stabilization subsidies, tax refunds, and other subsidies[21](index=21&type=chunk) [Other Gains – Net](index=9&type=section&id=3.5%20Other%20Gains%20–%20Net) For the six months ended June 30, 2025, other gains – net was RMB 2,658 thousand, a significant decrease from RMB 13,676 thousand in the prior period, primarily due to reduced fair value changes of financial assets at fair value through profit or loss and lower exchange gains | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Exchange (losses) / gains | (332) | 5,005 | | Fair value changes of financial assets at fair value through profit or loss | 8,225 | 11,806 | | Loss on disposal of financial assets at fair value through other comprehensive income | (3,706) | (3,217) | | **Other Gains – Net** | **2,658** | **13,676** | [Expenses by Nature](index=10&type=section&id=3.6%20Expenses%20by%20Nature) For the six months ended June 30, 2025, total cost of sales, selling and marketing expenses, administrative expenses, and research and development costs amounted to RMB 3,018,830 thousand, primarily comprising raw materials and consumables used, employee benefit expenses, and advertising expenses | Expense Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials and consumables used | 2,498,573 | 2,067,992 | | Employee benefit expenses | 192,355 | 179,455 | | Advertising expenses | 61,613 | 51,835 | | Research and development costs | 104,213 | 91,969 | | **Total Expenses** | **3,018,830** | **2,526,086** | [Finance Income – Net](index=10&type=section&id=3.7%20Finance%20Income%20–%20Net) For the six months ended June 30, 2025, net finance income was RMB 314 thousand, a significant decrease from RMB 12,520 thousand in the prior period, primarily due to reduced interest income from bank deposits | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total finance costs | (10,095) | (11,412) | | Interest income from bank deposits | 10,409 | 23,932 | | **Net Finance Income** | **314** | **12,520** | [Income Tax Expense](index=11&type=section&id=3.8%20Income%20Tax%20Expense) For the six months ended June 30, 2025, total income tax expense was RMB 7,108 thousand, a significant increase from RMB 716 thousand in the prior period, consistent with the growth in profit for the period. China's corporate income tax rate is generally 25%, with some subsidiaries enjoying a 15% or small-profit enterprise preferential tax rate | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China corporate income tax | 19,272 | 11,872 | | Deferred income tax | (12,164) | (11,156) | | **Total Income Tax Expense** | **7,108** | **716** | - The general China corporate income tax rate is 25%, except for two subsidiaries applying a 15% income tax rate with high-tech enterprise certificates and two subsidiaries enjoying preferential income tax rates for small-profit enterprises[24](index=24&type=chunk) - As of June 30, 2025, deferred tax expense of **RMB 2,344,000** and corresponding deferred tax liabilities have been recognized for withholding tax payable on retained earnings of the Group's Chinese subsidiaries[25](index=25&type=chunk) [Earnings Per Share](index=11&type=section&id=3.9%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share was RMB 0.29, and diluted earnings per share was RMB 0.28, both showing an increase compared to the prior period | Indicator | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Basic earnings per share | 0.29 | 0.16 | | Diluted earnings per share | 0.28 | 0.16 | [Basic Earnings Per Share](index=11&type=section&id=3.9.1%20Basic%20Earnings%20Per%20Share) Basic earnings per share is calculated by dividing the profit for the period attributable to equity holders of the company by the weighted average number of ordinary shares outstanding during each period. For the six months ended June 30, 2025, basic earnings per share was RMB 0.29 | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB thousand) | 110,116 | 65,988 | | Weighted average number of ordinary shares outstanding (thousand shares) | 379,215 | 407,352 | | Basic earnings per share (RMB) | 0.29 | 0.16 | [Diluted Earnings Per Share](index=12&type=section&id=3.9.2%20Diluted%20Earnings%20Per%20Share) Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding, assuming conversion of all potential dilutive ordinary shares. For the six months ended June 30, 2025, diluted earnings per share was RMB 0.28 | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB thousand) | 110,116 | 65,988 | | Weighted average number of ordinary shares for diluted EPS (thousand shares) | 394,046 | 414,239 | | Diluted earnings per share (RMB) | 0.28 | 0.16 | [Inventories](index=12&type=section&id=3.10%20Inventories) As of June 30, 2025, the company's total inventories amounted to RMB 304,611 thousand, a slight increase from RMB 303,068 thousand as of December 31, 2024, primarily consisting of finished goods. No inventory provision was made during the reporting period | Inventory Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 75,840 | 83,885 | | Work-in-progress | 24,183 | 22,057 | | Finished goods | 203,890 | 196,611 | | Goods in transit | 698 | 515 | | **Total Inventories** | **304,611** | **303,068** | - No provision for inventories was made for the six months ended June 30, 2024 and 2025[31](index=31&type=chunk) [Trade and Bills Receivables](index=13&type=section&id=3.11%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables amounted to RMB 442,583 thousand, an increase from RMB 360,302 thousand as of December 31, 2024. The majority of trade and bills receivables are denominated in RMB | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current trade receivables (net of impairment allowance) | 396,671 | 312,216 | | Bills receivables (net of impairment allowance) | 45,912 | 48,086 | | **Total** | **442,583** | **360,302** | - The majority of the Group's trade and bills receivables are denominated in RMB[33](index=33&type=chunk) [Current Trade and Bills Receivables](index=13&type=section&id=3.11.1%20Current%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, current trade receivables were RMB 396,671 thousand (net of impairment allowance), and bills receivables were RMB 45,912 thousand (net of impairment allowance). The majority of current trade receivables are due within one year | Aging of Current Trade Receivables | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 395,764 | 294,930 | | One to two years | 7,892 | 5,392 | | Two to three years | 4,274 | 29,196 | | Over three years | 20,000 | 8,045 | | **Total** | **427,930** | **337,563** | [Non-current Trade Receivables](index=14&type=section&id=3.11.2%20Non-current%20Trade%20Receivables) As of June 30, 2025, non-current trade receivables decreased to zero, compared to RMB 486 thousand (net of impairment allowance) as of December 31, 2024 | Non-current Trade Receivables | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current trade receivables | – | 499 | | Less: Impairment allowance for receivables – non-current | – | (13) | | **Total** | **–** | **486** | [Other Receivables and Prepayments](index=15&type=section&id=3.12%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total other receivables and prepayments amounted to RMB 473,666 thousand, an increase from RMB 415,338 thousand as of December 31, 2024, primarily due to increased prepayments for raw materials | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current | 188,738 | 177,373 | | Total current | 284,928 | 237,965 | | **Total** | **473,666** | **415,338** | - Current prepayments for raw materials increased from RMB 24,829 thousand as of December 31, 2024, to **RMB 90,957 thousand** as of June 30, 2025[34](index=34&type=chunk) [Dividends](index=15&type=section&id=3.13%20Dividends) For the six months ended June 30, 2025, the company declared a final dividend of RMB 56,628 thousand for the year ended December 31, 2024, at HKD 0.15 per fully paid share | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final dividend for the year ended December 31, 2024 (HKD 0.15 per share) | 56,628 | – | [Trade and Bills Payables and Other Payables](index=16&type=section&id=3.14%20Trade%20and%20Bills%20Payables%20and%20Other%20Payables) As of June 30, 2025, total trade and bills payables and other payables amounted to RMB 2,280,616 thousand, a significant increase from RMB 1,655,711 thousand as of December 31, 2024, primarily due to increased procurement volume in line with sales growth | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 901,141 | 483,294 | | Bills payables | 1,204,300 | 929,145 | | Other taxes payable | 34,442 | 46,074 | | **Total** | **2,280,616** | **1,655,711** | - The majority of trade payables are due within one year, increasing from RMB 463,807 thousand as of December 31, 2024, to **RMB 883,281 thousand** as of June 30, 2025[35](index=35&type=chunk) [Borrowings](index=17&type=section&id=3.15%20Borrowings) As of June 30, 2025, total borrowings amounted to RMB 1,261,923 thousand, an increase from RMB 1,002,333 thousand as of December 31, 2024. Current borrowings were RMB 924,223 thousand, and non-current borrowings were RMB 337,700 thousand | Borrowing Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current borrowings | 337,700 | 259,460 | | Total current borrowings | 924,223 | 742,873 | | **Total Borrowings** | **1,261,923** | **1,002,333** | - Among current borrowings, other borrowings (**RMB 513,908 thousand**) and unsecured bank loans (**RMB 261,000 thousand**) account for a larger proportion[37](index=37&type=chunk) [Business Review and Outlook](index=18&type=section&id=IV.%20Business%20Review%20and%20Outlook) This section provides an overview of the company's business performance during the period and its strategic outlook [Business Review](index=18&type=section&id=4.1%20Business%20Review) As of June 30, 2025, the electric two-wheeler market showed considerable growth potential driven by new national standards, trade-in policies, and advancements in smart technology. The Group achieved a significant 66.9% increase in net profit through technological strength, product innovation, and improved channel efficiency - The electric two-wheeler market shows considerable growth potential, driven by new national standard policies, natural replacement cycles, trade-in policies, and advancements in smart technology[38](index=38&type=chunk) - The Group's net profit increased by approximately **66.9%** from RMB 66.0 million for the six months ended June 30, 2024, to **RMB 110.1 million** for the same period in 2025, primarily due to product upgrades driving higher gross profit and improved channel efficiency leading to increased product sales[38](index=38&type=chunk) [Research and Development](index=18&type=section&id=4.1.1%20Research%20and%20Development) The Group is committed to the forefront of technological development in the electric two-wheeler industry, holding 912 patents as of June 30, 2025. R&D focuses on vehicle durability, safety, battery life, and smart features, with continuous investment in five core systems: liquid-cooled motors, solid-state electrical systems, digital battery maintenance, safe driving, and intelligent connectivity. R&D costs increased by 13.3% in the first half of 2025, with 222 new patent applications and 183 new patent grants, while actively developing key components for robotics - As of June 30, 2025, the Group held a total of **912 patents**, leading the industry in invention patents[39](index=39&type=chunk) - The Group continuously invests in five core systems, namely liquid-cooled motor system, solid-state electrical system, digital battery maintenance system, safe driving system, and intelligent connectivity system[39](index=39&type=chunk) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | R&D costs | 104.2 | 92.0 | 13.3% | - In the first half of 2025, the Group filed **222 new patent applications** and obtained **183 new patent grants**[40](index=40&type=chunk) - The Group is also actively developing key components for robotics, establishing the Jinhua Economic Development Zone Robotics Industry Alliance as a co-leading unit[41](index=41&type=chunk) [Products](index=19&type=section&id=4.1.2%20Products) The Group continues to strengthen its diversified product portfolio, covering entry-level, mid-range, and high-end models, strategically emphasizing growth in the mid-to-high-end segments. During the reporting period, over 20 new models were launched, and the Group became one of the first domestic enterprises to obtain certification under the new "Mandatory Product Certification Implementation Rules for Electric Bicycles" - The Group continues to strengthen its diversified product portfolio, with a comprehensive product line covering entry-level, mid-range, and high-end models, strategically emphasizing growth in the mid-to-high-end segments[42](index=42&type=chunk) - As of June 30, 2025, we launched **over 20 new models**, including industry-leading products such as K50, MS95, and Moda50D[42](index=42&type=chunk) - The Group's products have successfully obtained certification under the new "Mandatory Product Certification Implementation Rules for Electric Bicycles", becoming one of the first domestic enterprises to receive this new national standard certification[42](index=42&type=chunk) [Production](index=19&type=section&id=4.1.3%20Production) The Group is committed to enhancing manufacturing and quality control capabilities through standardized, automated, and intelligent production systems, actively participating in the national electric two-wheeler safety improvement initiative. The Chongqing intelligent production factory officially commenced operations in February 2025, improving production efficiency and product quality through organizational changes and hardware upgrades - The Group actively participates in the national electric two-wheeler safety improvement initiative by strictly adhering to national technical standards and continuously promoting standardized, automated, and intelligent production systems[43](index=43&type=chunk) - Our Chongqing intelligent production factory officially commenced operations in February 2025, with a clear vision to become a leading enterprise in full-chain intelligent manufacturing[43](index=43&type=chunk) - The Group further innovated its production efficiency, reflected in accelerated organizational changes, including the establishment of a manufacturing business unit to promote resource sharing among different production bases and enhance product consistency and quality[43](index=43&type=chunk) [Customers and Sales Channels](index=20&type=section&id=4.1.4%20Customers%20and%20Sales%20Channels) The Group continues to improve its multi-dimensional channel layout, strengthening online-offline synergy and enhancing end-to-end retail capabilities. As of June 30, 2025, its offline distribution network covered 336 cities across 31 provincial-level administrative regions in mainland China, with over 14,000 offline retail stores. Simultaneously, it actively expanded online e-commerce platforms, established strategic partnerships with enterprises and institutional clients such as HelloBike, Didi Qingju, and Meituan, and expanded international business into 3 new countries - As of June 30, 2025, the Group's offline distribution network covered **336 cities** across **31 provincial-level administrative regions** in mainland China, with **over 14,000 offline retail stores**[45](index=45&type=chunk) - The Group has opened online stores on mainstream e-commerce platforms such as Tmall, JD.com, Pinduoduo, and Douyin, promoting a new retail model of online ordering with physical store test rides or pick-ups[46](index=46&type=chunk) - The Group deepened its cooperation with HelloBike, jointly developing new national standard products; became a major supplier of Didi Qingju electric two-wheelers; and established a partnership with Meituan, which became the Group's fastest-growing supplier[48](index=48&type=chunk) - During the reporting period, the Group expanded its international business, entering **3 new countries**, and actively planning to enter European and American markets[49](index=49&type=chunk) [Marketing](index=21&type=section&id=4.1.5%20Marketing) The Group, centered on the differentiated marketing theme "One Vehicle for Ten Years," enhanced brand awareness and market penetration through cross-media collaborations, celebrity endorsements, IP co-branding, community interaction, and live-streaming sales. During the reporting period, online sales exceeded RMB 500 million, total sales on the Douyin platform increased by 72.7%, and the Group was recognized as one of "China's 500 Most Valuable Brands" - The Group closely focused on the differentiated marketing theme "One Vehicle for Ten Years," strengthening deep interaction with consumers and utilizing various marketing methods across traditional and new media to enhance the "Luyuan" brand's awareness and recognition[50](index=50&type=chunk) - The Group partnered with the well-known IP "ZANMANG LOOPY" to launch a co-developed product line, increasing market penetration into the ACGN culture[50](index=50&type=chunk) - In a multi-anchor joint live-streaming project launched with Wuyou Media, the Group's content exposure exceeded **1 billion views**, with online sales surpassing **RMB 500 million**, and total sales on the Douyin platform increasing by **72.7%**[50](index=50&type=chunk) - The Group was recognized as one of "China's 500 Most Valuable Brands" by the World Brand Lab during the reporting period[50](index=50&type=chunk) [Green Development and Social Responsibility](index=22&type=section&id=4.1.6%20Green%20Development%20and%20Social%20Responsibility) Adhering to green development principles, the Group actively fulfills its low-carbon environmental social responsibility, conducting "National Safety Public Welfare Campaign" activities to promote battery safety knowledge. Through its three core technologies—liquid-cooled motors, digital battery systems, and solid-state electrical systems—it enhances product energy efficiency and safety, promotes resource conservation and recycling, and plans to construct the new Chongqing intelligent production factory strictly according to "green factory" standards, exploring carbon neutrality practices throughout the product lifecycle - The Group conducted a series of "National Safety Public Welfare Campaign" activities in cities such as Nanjing, Zhengzhou, Tianshui, Shanghai, and Hefei, focusing on promoting electric two-wheeler battery safety knowledge and preventive measures[51](index=51&type=chunk) - The Group relies on its three core technologies—liquid-cooled motor, digital battery system, and solid-state electrical system—to continuously enhance product energy efficiency and safety, promoting resource conservation and recycling[52](index=52&type=chunk) - The Group's newly built Chongqing intelligent production factory will strictly adhere to "green factory" standards, actively exploring carbon neutrality practices throughout the product lifecycle[52](index=52&type=chunk) [Outlook](index=23&type=section&id=4.2%20Outlook) The Group anticipates strong growth opportunities in the electric two-wheeler market, particularly driven by new national standards and trade-in programs. The company will prioritize the development of high-end electric-assist bicycles and strategically expand into electric mobility ecosystem services, including battery swapping infrastructure, shared mobility solutions, and enhanced after-sales services, to consolidate its market leadership - In 2025, the Chinese electric bicycle market is expected to experience strong growth, driven by policies such as the trade-in program and the transition to new national standards[54](index=54&type=chunk) - The Group prioritizes the development of high-end electric-assist bicycles in 2025 and strategically expands into electric mobility ecosystem services, including battery swapping infrastructure, shared mobility solutions, and enhanced after-sales services[53](index=53&type=chunk) [Market Opportunities and Competitive Landscape](index=23&type=section&id=4.2.1%20Market%20Opportunities%20and%20Competitive%20Landscape) The Chinese electric bicycle market is projected to experience strong growth, with new national standards accelerating industry consolidation and shifting competition from price to quality-driven differentiation, particularly in the mid-to-high-end market. The Group will leverage its core technological advantages and superior product quality to consolidate its market-leading position - With the full implementation of updated national standards and increased industry-wide compliance efforts, non-compliant manufacturers will be systematically phased out, accelerating market share consolidation among industry leaders[54](index=54&type=chunk) - As inferior products gradually exit the market, market competition is expected to shift from a price-centric competition to a quality-driven differentiation[54](index=54&type=chunk) - The mid-to-high-end market will accelerate its development, driven by continuous technological advancements and performance upgrades[54](index=54&type=chunk) [Growth Strategies](index=23&type=section&id=4.2.2%20Growth%20Strategies) The Group will enhance its core competitiveness by continuously consolidating technological barriers, strategically transforming into intelligent manufacturing, and actively cultivating market demand, particularly expanding into overseas high-end markets and the electric-assist bicycle market - The Group will continue to enhance its core competitiveness through the following growth strategies: continuously consolidating technological barriers, strategic intelligent manufacturing transformation, and actively cultivating market demand[54](index=54&type=chunk) [Continuously Consolidate Technological Barriers](index=23&type=section&id=4.2.2.1%20Continuously%20Consolidate%20Technological%20Barriers) The Group is committed to enhancing its core technological strength, consolidating its leading position in proprietary technologies such as liquid-cooled motor systems, and plans to further strengthen its digital battery management system by improving thermal management and low-temperature performance to extend battery life and address safety concerns. Simultaneously, it will establish a unified R&D platform to accelerate technology commercialization - The Group is committed to enhancing its core technological strength, consolidating its leading position in proprietary technologies such as liquid-cooled motor systems, while planning to further strengthen its digital battery management system by improving thermal management and low-temperature performance[55](index=55&type=chunk) - To accelerate technology commercialization, the Group has established a unified R&D platform to standardize modular design protocols and streamline development processes[55](index=55&type=chunk) [Strategic Intelligent Manufacturing Transformation](index=24&type=section&id=4.2.2.2%20Strategic%20Intelligent%20Manufacturing%20Transformation) The Group plans a strategic intelligent manufacturing transformation, including implementing automation, industrial internet connectivity, introducing digital twin technology and artificial intelligence, developing standardized and modular component systems, and building demonstration intelligent factories, aiming for national recognition by 2026 to significantly improve quality consistency and reduce production costs - The Group is planning a strategic intelligent manufacturing transformation, including implementing automation and industrial internet connectivity, and introducing digital twin technology and artificial intelligence into the manufacturing process[56](index=56&type=chunk) - The Group expects that once this transformation is implemented, it will significantly improve quality consistency while reducing production costs, providing investors with a clear technology roadmap[56](index=56&type=chunk) [Actively Cultivate Market Demand](index=24&type=section&id=4.2.2.3%20Actively%20Cultivate%20Market%20Demand) The Group will consolidate its position in the mainstream mass market by enhancing product durability and explore overseas opportunities with a smart, fashionable, and low-carbon brand image, targeting international high-end markets. The global electric-assist bicycle market value is projected to grow from USD 35 billion in 2024 to USD 62 billion in 2030, with a CAGR of nearly 10% - The Group will continue to consolidate its position in the mainstream mass market by enhancing product durability and other competitive advantages[57](index=57&type=chunk) - The Group will strategically explore overseas opportunities with a smart, fashionable, and low-carbon brand image, targeting international high-end markets, with global sustainable development as its goal[57](index=57&type=chunk) - The electric-assist bicycle market value is projected to grow from **USD 35 billion** in 2024 to **USD 62 billion** in 2030, with a compound annual growth rate of nearly **10%**[57](index=57&type=chunk) [LYVA Brand Development](index=25&type=section&id=4.2.3%20LYVA%20Brand%20Development) The Group foresees significant growth opportunities in the high-end electric-assist bicycle market, successfully launching the "LYVA" brand and opening its first self-operated store by Hangzhou West Lake. LYVA brand electric-assist bicycles integrate advanced sensing technology and AI algorithms to provide personalized power assistance, enhancing brand influence through global events, academic collaborations, flagship experience stores, and carbon reduction awareness activities - The Group foresees significant growth opportunities in the high-end electric-assist bicycle segment, successfully launching the "LYVA" brand and opening its first self-operated store by the renowned cultural landmark, Hangzhou West Lake[58](index=58&type=chunk) - LYVA brand electric-assist bicycles integrate sensing technologies, including torque, speed, acceleration, resistance, gradient, and heart rate monitoring systems, combined with artificial intelligence algorithms to provide personalized power assistance[59](index=59&type=chunk) - The LYVA brand continuously showcases advanced AI riding algorithms and mid-drive motor systems in global events, and collaborates with top universities to develop personalized "exercise prescriptions"[60](index=60&type=chunk) [Ecosystem Services Expansion](index=26&type=section&id=4.2.4%20Ecosystem%20Services%20Expansion) The Group is actively developing three complementary business lines: battery swapping services (strategic investment in a startup to expand the network), multi-functional rental services (for scenic areas, campus commuting, and urban transport, integrated with platforms like Meituan), and after-sales services (retrofitting existing vehicles with smart devices to comply with new national standards). These services create multiple revenue streams beyond traditional sales and address consumer pain points - The Group has made a strategic investment in a startup that has received policy support from local governments (especially in Shenzhen) to expand its battery swapping network[61](index=61&type=chunk) - The second business line focuses on rental services customized for scenic areas, campus commuting, and urban transport, integrated with platforms like Meituan for convenient customer acquisition[61](index=61&type=chunk) - The third business line includes after-sales services, providing smart device retrofits for existing vehicles to comply with new national standards, addressing the market demand of approximately **400 million electric vehicles** currently on the market[61](index=61&type=chunk) [Management Discussion and Analysis of Financial Performance](index=27&type=section&id=V.%20Management%20Discussion%20and%20Analysis%20of%20Financial%20Performance) This section provides management's discussion and analysis of the company's financial performance during the reporting period [Revenue](index=27&type=section&id=5.1%20Revenue) For the six months ended June 30, 2025, the Group's revenue was RMB 3,095.7 million, a year-on-year increase of 22.2%, primarily driven by technology-driven product upgrades, new retail model innovations, improved single-store efficiency, and expansion of store count. Revenue from electric bicycles and battery sales grew significantly | Product Category | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Electric bicycles | 1,996,788 | 64.5 | 1,545,677 | 61.0 | | Electric scooters | 354,128 | 11.4 | 345,017 | 13.6 | | Batteries | 596,523 | 19.3 | 512,052 | 20.2 | | Electric two-wheeler components | 106,815 | 3.5 | 103,955 | 4.1 | | Other products | 23,537 | 0.8 | 5,838 | 0.2 | | **Subtotal Product Sales** | **3,077,791** | **99.4** | **2,512,539** | **99.2** | | Subtotal Service Types | 17,878 | 0.6 | 21,365 | 0.8 | | **Total** | **3,095,669** | **100.0** | **2,533,904** | **100.0** | - Revenue from electric bicycle sales increased by approximately **29.2%** to **RMB 1,996.8 million**, primarily due to product upgrades under widely integrated smart systems greatly satisfying consumer demand and continuously increasing market share in the commercial market[65](index=65&type=chunk) - Revenue from battery sales increased by approximately **16.5%** to **RMB 596.5 million**, primarily due to product upgrades under widely integrated smart systems greatly satisfying consumer demand and continuously increasing market share in the commercial market[65](index=65&type=chunk) [Cost of Sales](index=28&type=section&id=5.2%20Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales was RMB 2,675.9 million, a year-on-year increase of 19.9%, consistent with the revenue growth trend | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 2,675.9 | 2,231.0 | 19.9% | [Gross Profit and Gross Profit Margin](index=28&type=section&id=5.3%20Gross%20Profit%20and%20Gross%20Profit%20Margin) For the six months ended June 30, 2025, gross profit was RMB 419.7 million, a year-on-year increase of 38.5%. Gross profit margin improved from 12.0% to 13.6%, an increase of 1.6 percentage points | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Gross profit | 419.7 | 302.9 | 38.5% | | Gross profit margin | 13.6% | 12.0% | 1.6 percentage points | [Selling and Marketing Expenses](index=28&type=section&id=5.4%20Selling%20and%20Marketing%20Expenses) For the six months ended June 30, 2025, selling and marketing expenses were RMB 182.0 million, a year-on-year increase of 20.7%, primarily due to expanded brand building activities, upgraded new retail systems, and increased share-based payments | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Selling and marketing expenses | 182.0 | 150.8 | 20.7% | - The increase in selling and marketing expenses was primarily attributable to expanded brand building activities targeting specific groups, including cross-media cooperation projects, which enhanced the effectiveness of social media operations, upgrades to new retail systems, and increased share-based payments[69](index=69&type=chunk) [Administrative Expenses](index=29&type=section&id=5.5%20Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses were RMB 56.6 million, a year-on-year increase of 8.2%, primarily due to increased year-end bonuses paid to employees | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 56.6 | 52.3 | 8.2% | - The increase in administrative expenses was primarily attributable to increased year-end bonuses paid to the Group's employees[70](index=70&type=chunk) [Research and Development Costs](index=29&type=section&id=5.6%20Research%20and%20Development%20Costs) For the six months ended June 30, 2025, research and development costs were RMB 104.2 million, a year-on-year increase of 13.3%, primarily due to increased investment in new product development | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Research and development costs | 104.2 | 92.0 | 13.3% | - The increase in research and development costs was primarily due to increased investment in new product development[71](index=71&type=chunk) [Reversal of / (Provision for) Impairment Losses on Financial Assets](index=29&type=section&id=5.7%20Reversal%20of%20%2F%20%28Provision%20for%29%20Impairment%20Losses%20on%20Financial%20Assets) During the reporting period, the Group recognized a reversal of impairment losses on financial assets of RMB 5.1 million, compared to an impairment provision of RMB 0.5 million in the prior period, primarily due to the recovery of historical bad debts | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Reversal of / (Provision for) impairment losses on financial assets | 5.1 | (0.5) | - The reversal of impairment losses on financial assets was primarily attributable to the recovery of historical bad debts[72](index=72&type=chunk) [Other Income](index=29&type=section&id=5.8%20Other%20Income) For the six months ended June 30, 2025, other income was RMB 37.2 million, remaining relatively stable compared to RMB 38.1 million in the prior period | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Other income | 37.2 | 38.1 | [Other Expenses](index=29&type=section&id=5.9%20Other%20Expenses) For the six months ended June 30, 2025, other expenses were RMB 3.6 million, a year-on-year decrease of 24.6%, primarily due to reduced electricity and depreciation expenses resulting from a decrease in the scale of leased assets | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year decrease (%) | | :--- | :--- | :--- | :--- | | Other expenses | 3.6 | 4.8 | 24.6% | - The decrease in other expenses was primarily attributable to a decrease in the scale of the Group's leased assets, leading to reduced electricity and depreciation expenses[74](index=74&type=chunk) [Other Gains – Net](index=29&type=section&id=5.10%20Other%20Gains%20–%20Net) For the six months ended June 30, 2025, other gains – net was RMB 2.7 million, a year-on-year decrease of 80.6%, primarily due to reduced fair value changes of financial assets at fair value through profit or loss from decreased investments in large-denomination certificates of deposit and lower exchange gains | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year decrease (%) | | :--- | :--- | :--- | :--- | | Other gains – net | 2.7 | 13.7 | 80.6% | - The decrease in other gains – net was primarily due to a decrease in the Group's investments in large-denomination certificates of deposit, leading to reduced fair value changes of financial assets at fair value through profit or loss during the period; and a decrease in the Group's exchange gains[75](index=75&type=chunk) [Finance Income – Net](index=30&type=section&id=5.11%20Finance%20Income%20–%20Net) For the six months ended June 30, 2025, net finance income was RMB 0.3 million, a year-on-year decrease of 97.5%, primarily due to reduced interest income from bank deposits after utilizing the proceeds from the global offering | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year decrease (%) | | :--- | :--- | :--- | :--- | | Net finance income | 0.3 | 12.5 | 97.5% | - The decrease in net finance income was primarily due to reduced interest income from bank deposits after utilizing the proceeds from the global offering[76](index=76&type=chunk) [Income Tax Expense](index=30&type=section&id=5.12%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was RMB 7.1 million, a significant year-on-year increase of 892.7%, consistent with the Group's profit growth for the period | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 7.1 | 0.7 | 892.7% | - The increase in income tax expense was consistent with the Group's profit growth for the period[77](index=77&type=chunk) [Profit for the Period](index=30&type=section&id=5.13%20Profit%20for%20the%20Period) For the six months ended June 30, 2025, profit for the period was RMB 110.1 million, a year-on-year increase of 66.9%, primarily due to the combined effect of the aforementioned factors | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 110.1 | 66.0 | 66.9% | [Management Discussion and Analysis of Financial Position](index=30&type=section&id=VI.%20Management%20Discussion%20and%20Analysis%20of%20Financial%20Position) This section provides management's discussion and analysis of the company's financial position during the reporting period [Inventories](index=30&type=section&id=6.1%20Inventories) As of June 30, 2025, the Group's inventories were RMB 304.6 million, remaining relatively stable compared to RMB 303.1 million as of December 31, 2024 | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Inventories | 304.6 | 303.1 | [Trade Receivables](index=30&type=section&id=6.2%20Trade%20Receivables) As of June 30, 2025, the Group's trade receivables were RMB 396.7 million, an increase of 26.9% from RMB 312.7 million as of December 31, 2024, primarily due to increased credit sales to corporate and institutional customers | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 396.7 | 312.7 | 26.9% | - The increase in trade receivables was primarily due to increased credit sales resulting from synchronized orders from corporate and institutional customers[80](index=80&type=chunk) [Other Receivables and Prepayments](index=30&type=section&id=6.3%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, the Group's other receivables and prepayments were RMB 473.7 million, an increase of 14.0% from RMB 415.3 million as of December 31, 2024, primarily due to increased prepayments for raw materials for strategic reserves | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Other receivables and prepayments | 473.7 | 415.3 | 14.0% | - The increase in other receivables and prepayments was primarily due to increased prepayments for raw materials for strategic reserves[81](index=81&type=chunk) [Property, Plant and Equipment](index=31&type=section&id=6.4%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the Group's property, plant and equipment amounted to RMB 1,273.5 million, an increase of 1.4% from RMB 1,255.3 million as of December 31, 2024, primarily due to increased machinery and equipment at new production bases | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment | 1,273.5 | 1,255.3 | 1.4% | - The increase in property, plant and equipment was primarily due to increased machinery and equipment at new production bases[83](index=83&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=31&type=section&id=6.5%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the Group's financial assets at fair value through profit or loss amounted to RMB 692.3 million, an increase of 40.8% from RMB 491.7 million as of December 31, 2024, primarily attributable to an increase in large-denomination certificates of deposit | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 692.3 | 491.7 | 40.8% | - The increase in financial assets at fair value through profit or loss was primarily attributable to an increase in large-denomination certificates of deposit[84](index=84&type=chunk) [Trade Payables](index=31&type=section&id=6.6%20Trade%20Payables) As of June 30, 2025, the Group's trade payables amounted to RMB 901.1 million, an increase of 86.5% from RMB 483.3 million as of December 31, 2024, primarily due to increased procurement volume in line with sales growth | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Trade payables | 901.1 | 483.3 | 86.5% | - The increase in trade payables was primarily due to increased procurement volume as sales grew[85](index=85&type=chunk) [Capital Structure and Liquidity](index=31&type=section&id=VII.%20Capital%20Structure%20and%20Liquidity) This section discusses the company's capital structure, liquidity, and financial resources [Capital Structure](index=31&type=section&id=7.1%20Capital%20Structure) As of June 30, 2025, the Group's total assets were RMB 5,384.0 million, and total liabilities were RMB 3,803.9 million. The total debt-to-asset ratio increased from 65.4% to 70.7%, and the current ratio increased from 1.06 times to 1.09 times | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 5,384.0 | 4,324.3 | 24.5% | | Total liabilities | 3,803.9 | 2,826.6 | 34.6% | | Total debt-to-asset ratio | 70.7% | 65.4% | 5.3 percentage points | | Current ratio | 1.09 times | 1.06 times | 0.03 times | [Liquidity, Financial Resources and Gearing Ratio](index=32&type=section&id=7.2%20Liquidity,%20Financial%20Resources%20and%20Gearing%20Ratio) The Group adopts a stable and prudent funding and treasury policy. As of June 30, 2025, cash and cash equivalents increased to RMB 1,060.2 million, a year-on-year increase of 91.2%, primarily due to increased net cash flow from operating activities driven by sales growth. The gearing ratio increased to 81.5%, primarily due to the need to establish new production bases and increased bank loans | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 1,060.2 | 554.5 | 91.2% | | Interest-bearing bank and other borrowings | 1,261.9 | 1,002.3 | 25.9% | | Gearing ratio | 81.5% | 68.1% | 13.4 percentage points | - The increase in cash and cash equivalents was primarily attributable to increased net cash flow from operating activities driven by sales growth during the reporting period[88](index=88&type=chunk) - The increase in gearing ratio was primarily due to the need to establish new production bases and increased bank loans[88](index=88&type=chunk) - As of June 30, 2025, the Group's total bank facilities amounted to **RMB 3,736.0 million**, of which **RMB 2,485.9 million** had been utilized[90](index=90&type=chunk) [Capital Expenditure](index=33&type=section&id=7.3%20Capital%20Expenditure) For the six months ended June 30, 2025, capital expenditure was RMB 150.3 million, a year-on-year increase of 7.6%, primarily used for expanding production capacity, including constructing additional production facilities and upgrading existing machinery and equipment | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Capital expenditure | 150.3 | 139.6 | 7.6% | - The Group's capital expenditure was primarily used for expanding its production capacity, including constructing additional production facilities and upgrading existing machinery and equipment[91](index=91&type=chunk) [Foreign Exchange Risk and Hedging](index=33&type=section&id=7.4%20Foreign%20Exchange%20Risk%20and%20Hedging) The Group primarily operates in China, with most transactions settled in RMB, and faces foreign exchange risks mainly involving USD and HKD. As of the date of this announcement, the Group has not hedged its foreign exchange risk but closely monitors it and may enter into forward currency contracts if necessary to manage the risk - The Group operates its business in China, with most transactions settled in RMB. The Group's foreign exchange risk primarily involves USD and HKD[92](index=92&type=chunk) - As of the date of this announcement, the Group has not hedged its foreign exchange risk but closely manages it through regular reviews of its net foreign exchange exposure and may enter into forward currency contracts (if necessary) to manage its foreign exchange risk[92](index=92&type=chunk) [Human Resources and Share Incentive Schemes](index=33&type=section&id=VIII.%20Human%20Resources%20and%20Share%20Incentive%20Schemes) This section provides information on the company's human resources and share incentive schemes [Human Resources](index=33&type=section&id=8.1%20Human%20Resources) As of June 30, 2025, the Group had 2,986 employees. Total staff costs were RMB 273.8 million, a year-on-year increase of 11.7%, primarily due to increased share-based payments and business growth. The company provides diversified training and offers remuneration and rewards based on performance | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of employees | 2,986 | - | | Total staff costs (RMB million) | 273.8 | 245.1 | | Year-on-year growth (%) | 11.7% | - | - The increase in total staff costs was primarily due to increased share-based payments and the impact of business growth[93](index=93&type=chunk) - The Group regularly provides training for various operational functions, including new employee onboarding, technical training, product training, management training, and work safety training[94](index=94&type=chunk) [Pre-IPO Share Scheme](index=34&type=section&id=8.2%20Pre-IPO%20Share%20Scheme) The company adopted the Pre-IPO Share Scheme on July 20, 2023, to attract, incentivize, and retain eligible employees. As of June 30, 2025, share options corresponding to a total of 16,736,000 underlying shares had been granted to 108 eligible participants, of which 15,073,035 remained unexercised. No share options were granted under this scheme during the reporting period - The company adopted the Pre-IPO Share Scheme on July 20, 2023, to attract, reward, incentivize, retain, compensate, and/or provide benefits to eligible employees[95](index=95&type=chunk) - As of June 30, 2025, share options corresponding to a total of **16,736,000 underlying shares** had been granted to **108 eligible participants**, of which **15,073,035** remained unexercised[96](index=96&type=chunk)[98](index=98&type=chunk) - No share options were granted under the Pre-IPO Share Scheme during the reporting period, as no further share options will be granted after October 12, 2023 (the Listing Date)[100](index=100&type=chunk) [Post-IPO Share Scheme](index=37&type=section&id=8.3%20Post-IPO%20Share%20Scheme) The company conditionally adopted the Post-IPO Share Scheme on August 21, 2023. As of June 30, 2025, 8,316,500 Post-IPO Share Awards had been granted to 158 eligible participants, of which 8,291,000 remained unvested. No share options were granted under this scheme during the reporting period, and all awards are paid from existing shares held by the trustee - The company conditionally adopted the Post-IPO Share Scheme on August 21, 2023[95](index=95&type=chunk) - As of June 30, 2025, **8,316,500 Post-IPO Share Awards** had been granted to **158 eligible participants**, of which **8,291,000** remained unvested[97](index=97&type=chunk)[102](index=102&type=chunk) - All Post-IPO Awards granted under the Post-IPO Share Scheme during the reporting period have been/will be paid from existing shares held by the trustee[108](index=108&type=chunk) [Other Significant Matters](index=39&type=section&id=IX.%20Other%20Significant%20Matters) This section covers other important matters not discussed elsewhere in the report [Contingent Liabilities](index=39&type=section&id=9.1%20Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[110](index=110&type=chunk) [Pledge of Assets](index=40&type=section&id=9.2%20Pledge%20of%20Assets) As of June 30, 2025, the Group had pledged property, plant and equipment and right-of-use assets with net book values of RMB 383.6 million and RMB 46.1 million, respectively, as collateral for borrowings. Additionally, RMB 635.0 million in certificates of deposit were pledged as security for bills payable, and 100% equity interest in Guangxi Luyuan Electric Vehicle Co., Ltd. and certain patents were pledged for bank borrowings - As of June 30, 2025, the Group had pledged property, plant and equipment and right-of-use assets with net book values of **RMB 383.6 million** and **RMB 46.1 million**, respectively, as collateral for the Group's borrowings[111](index=111&type=chunk) - As of June 30, 2025, the Group had pledged certificates of deposit of **RMB 635.0 million** (December 31, 2024: RMB 467.1 million) as security for the Group's bills payable[111](index=111&type=chunk) - As of June 30, 2025, the Group had pledged 100% equity interest in Guangxi Luyuan Electric Vehicle Co., Ltd., a wholly-owned subsidiary of the Company, and certain patents of the Group as collateral for the Group's bank borrowings[111](index=111&type=chunk) [Material Investments, Acquisitions and Disposals](index=40&type=section&id=9.3%20Material%20Investments,%20Acquisitions%20and%20Disposals) As of June 30, 2025, the Group held no material investments and did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period. The Board has also not authorized specific plans for other material investments or acquisitions of capital assets - As of June 30, 2025, the Group held no material investments[113](index=113&type=chunk) - The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[113](index=113&type=chunk) [Use of Proceeds](index=40&type=section&id=9.4%20Use%20of%20Proceeds) The net proceeds from the company's global offering were approximately HKD 706.4 million. The Board resolved to reallocate a portion of the unutilized net proceeds to acquire land use rights and construct production infrastructure for a new production facility (Chongqing factory) in Southwest China, to address market uncertainties and enhance production capacity. As of June 30, 2025, most of the net proceeds had been utilized, with the remaining HKD 16.7 million expected to be fully utilized by the end of 2025 - The net proceeds from the global offering, after deducting related expenses, were approximately **HKD 706.4 million**[114](index=114&type=chunk) - The Board resolved to reallocate **HKD 42.0 million** of the unutilized net proceeds originally intended for the Shandong plant capacity expansion plan to acquire land use rights and construct production infrastructure for a new production facility (Chongqing factory) in Southwest China[115](index=115&type=chunk) | Intended Use | Net Proceeds from IPO (HKD million) | Utilized as of June 30, 2025 (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Timeline for Utilization of Unutilized Balance | | :--- | :--- | :--- | :--- | :--- | | Enhance R&D capabilities | 211.9 | 197.6 | 14.3 | End of 2025 | | Strengthen sales and distribution channels | 211.9 | 209.5 | 2.5 | End of 2025 | | Enhance production capacity | 211.9 | 211.9 | – | End of June 2025 | | Working capital and other general corporate purposes | 70.6 | 70.6 | – | – | | **Total** | **706.4** | **689.7** | **16.7** | **End of 2025** | [Purchase, Sale or Redemption of the Company’s Listed Securities](index=44&type=section&id=9.5%20Purchase,%20Sale%20or%20Redemption%20of%20the%20Company%E2%80%99s%20Listed%20Securities) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：6038） 截至二零二五年六月三十日止六個月 之中期業績公告 | 財務摘要 | | | | --- | --- | --- | | | 截至六月三十日止六個月 | | | | 二零二五年 | 二零二四年 | | | （未經審核） | （未經審核） | | | 千港元 | 千港元 | | 收 益 | 239,257 | 195,984 | | 毛 利 | 61,528 | 50,377 | | 除所得稅前溢利 | 45,753 | 36,652 | | 期內溢利 | 39,462 | 30,593 | | 每股基本盈利 （港仙） | 3.9 | 3.1 | | 每股攤薄盈利 （港仙） | 3.9 | 3.1 | | | 董事會並不建議於截至二零二五年六月三十日止期間派付中期股息。 | | – 1 – 信 ...

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, showing a significant reduction in loss but a decrease in total assets and net current assets [Condensed Consolidated Income Statement](index=1&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, both operating loss and loss for the period significantly narrowed, primarily due to a turnaround from loss to gain in financial assets at fair value through profit or loss Condensed Consolidated Income Statement | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total operating income | 3,465 | 16,054 | (12,589) | -78.42% | | Dividend income from financial assets | 147 | 165 | (18) | -10.91% | | Net gains/(losses) on financial assets | 2,159 | (8,265) | 10,424 | N/A | | Other income | – | 82 | (82) | -100.00% | | Other gains and losses | 1 | 215 | (214) | -99.53% | | Administrative expenses | (5,539) | (5,987) | 448 | -7.48% | | Other operating expenses | (585) | (571) | (14) | 2.45% | | Operating loss | (3,817) | (14,361) | 10,544 | -73.42% | | Loss before tax | (3,817) | (14,370) | 10,553 | -73.44% | | Loss for the period attributable to owners of the Company | (3,817) | (14,370) | 10,553 | -73.44% | | Basic loss per share (HKD cents) | (2.25) | (10.16) | 7.91 | -77.85% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the total comprehensive loss for the period significantly narrowed to HKD 3,817 thousand from HKD 14,370 thousand in the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Loss for the period | (3,817) | (14,370) | 10,553 | -73.44% | | Other comprehensive income for the period (net of tax) | – | – | – | N/A | | Total comprehensive loss for the period attributable to owners of the Company | (3,817) | (14,370) | 10,553 | -73.44% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and net current assets decreased, mainly due to a reduction in bank and cash balances, while total equity remained stable and total liabilities significantly reduced Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Non-current assets | 15,545 | 16,108 | (563) | -3.50% | | Current assets | 13,225 | 16,990 | (3,765) | -22.16% | | Total assets | 28,770 | 33,098 | (4,328) | -13.08% | | **Equity and Liabilities** | | | | | | Total equity | 28,045 | 31,862 | (3,817) | -11.98% | | Total liabilities | 725 | 1,236 | (511) | -41.34% | | Total equity and liabilities | 28,770 | 33,098 | (4,328) | -13.08% | | Net current assets | 12,500 | 15,754 | (3,254) | -20.65% | | Net asset value per share (HKD) | 0.17 | 0.19 | (0.02) | -10.53% | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, accounting policies, segment information, and specific components and changes in financial data, providing essential supplementary information for understanding the financial statements [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, with accounting policies consistent with the 2024 annual financial statements - The condensed consolidated financial statements are prepared in compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of the Listing Rules[7](index=7&type=chunk) - Except for specific amendments, accounting policies and calculation methods remain consistent with the financial statements for the year ended December 31, 2024[7](index=7&type=chunk) [2. New and Revised Hong Kong Financial Reporting Standards](index=5&type=section&id=2.%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group first adopted HKAS 21 (Amendment) "Lack of Exchangeability" from January 1, 2025, without resulting in changes to accounting policies or retrospective adjustments - The Group first adopted Hong Kong Accounting Standard 21 (Amendment) "Lack of Exchangeability" from January 1, 2025[8](index=8&type=chunk) - The adoption of the new revised standard did not result in changes to accounting policies or retrospective adjustments[8](index=8&type=chunk) [3. Segment Information](index=6&type=section&id=3.%20Segment%20Information) The Group's principal business is investing in equity and debt instruments, managed on a portfolio basis, thus no segment information is presented, with all revenue and non-current assets (excluding financial assets) originating from Hong Kong - The Group's principal business is investing in equity and debt instruments, with management reviewing investments on a portfolio basis, hence no segment information is presented[9](index=9&type=chunk) - All the Group's revenue and non-current assets (excluding financial assets at fair value through profit or loss) originate from Hong Kong[9](index=9&type=chunk) [4. Total Operating Income](index=6&type=section&id=4.%20Total%20Operating%20Income) For the six months ended June 30, 2025, total operating income significantly decreased, primarily due to reduced proceeds from the disposal of financial assets at fair value through profit or loss Total Operating Income | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Proceeds from disposal of financial assets at fair value through profit or loss | 3,318 | 15,889 | (12,571) | -79.12% | | Dividend income from financial assets at fair value through profit or loss | 147 | 165 | (18) | -10.91% | | **Total** | **3,465** | **16,054** | **(12,589)** | **-78.42%** | [5. Other Income](index=6&type=section&id=5.%20Other%20Income) For the six months ended June 30, 2025, the company had no other income, whereas the prior year's period mainly included bank interest and miscellaneous income Other Income | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bank interest income | – | 77 | (77) | -100.00% | | Miscellaneous income | – | 5 | (5) | -100.00% | | **Total** | **–** | **82** | **(82)** | **-100.00%** | [6. Other Gains and Losses](index=6&type=section&id=6.%20Other%20Gains%20and%20Losses) For the six months ended June 30, 2025, other gains and losses were only HKD 1 thousand, a significant decrease from HKD 215 thousand in the prior year, mainly due to gains from disposal of property, plant and equipment and write-off of accrued expenses in the prior period Other Gains and Losses | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Exchange gains | 1 | – | 1 | N/A | | Gains on disposal of property, plant and equipment | – | 40 | (40) | -100.00% | | Write-off of accrued expenses | – | 175 | (175) | -100.00% | | **Total** | **1** | **215** | **(214)** | **-99.53%** | [7. Loss for the Period Attributable to Owners of the Company](index=7&type=section&id=7.%20Loss%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) The loss for the period was primarily influenced by employee benefit expenses, depreciation, and investment management fees, with employee benefit expenses remaining stable Loss for the Period Attributable to Owners of the Company | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Depreciation | 270 | 272 | (2) | -0.74% | | Donations | – | 2 | (2) | -100.00% | | Employee benefit expenses | 4,288 | 4,268 | 20 | 0.47% | | Custodian fees | 5 | 45 | (40) | -88.89% | | Investment management fees | 195 | 195 | – | 0.00% | [8. Income Tax Expense](index=7&type=section&id=8.%20Income%20Tax%20Expense) No Hong Kong profits tax provision was required as the Group had no assessable profits in both reporting periods - The Group had no assessable profits in both the first half of 2025 and 2024, thus no Hong Kong profits tax provision was required[13](index=13&type=chunk) [9. Dividends](index=7&type=section&id=9.%20Dividends) For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any dividends, consistent with the prior year - For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any dividends[14](index=14&type=chunk) [10. Loss Per Share Attributable to Owners of the Company](index=8&type=section&id=10.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, basic loss per share significantly narrowed to HKD 2.25 cents from HKD 10.16 cents in the prior year, mainly due to reduced loss for the period, with diluted loss per share being the same as basic loss per share due to the absence of potentially dilutive ordinary shares Loss Per Share Attributable to Owners of the Company | Indicator | 2025 (HKD cents) | 2024 (HKD cents) | Change (HKD cents) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Basic loss per share | (2.25) | (10.16) | 7.91 | -77.85% | | Diluted loss per share | (2.25) | (10.16) | 7.91 | -77.85% | - Basic loss per share is calculated based on a loss for the period of approximately **HKD 3,817,000** and a weighted average of **169,707,187** ordinary shares outstanding[15](index=15&type=chunk) - Diluted loss per share is the same as basic loss per share due to the absence of potentially dilutive ordinary shares[16](index=16&type=chunk) [11. Financial Assets at Fair Value Through Profit or Loss](index=8&type=section&id=11.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the total financial assets at fair value through profit or loss slightly increased, primarily comprising Hong Kong listed equity securities, one of which was suspended from trading Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Hong Kong listed equity securities | 20,233 | 20,065 | 168 | 0.84% | | - Current assets | 12,169 | 11,707 | 462 | 3.95% | | - Non-current assets | 8,064 | 8,358 | (294) | -3.52% | - The fair value of Hong Kong listed equity securities is primarily based on market quotations, but includes one security suspended from trading since April 2, 2024[17](index=17&type=chunk) [12. Share Capital](index=9&type=section&id=12.%20Share%20Capital) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged Share Capital | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Authorized share capital (20,000,000,000 ordinary shares of HKD 0.01 each) | 200,000 | 200,000 | | Issued and fully paid share capital (169,707,187 ordinary shares of HKD 0.01 each) | 1,697 | 1,697 | [13. Net Asset Value Per Share](index=9&type=section&id=13.%20Net%20Asset%20Value%20Per%20Share) As of June 30, 2025, net asset value per share decreased to HKD 0.17 from HKD 0.19 as of December 31, 2024, primarily due to a reduction in net assets Net Asset Value Per Share | Indicator | June 30, 2025 | December 31, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net assets (HKD thousands) | 28,045 | 31,862 | (3,817) | -11.98% | | Number of issued ordinary shares | 169,707,187 | 169,707,187 | – | 0.00% | | Net asset value per share (HKD) | 0.17 | 0.19 | (0.02) | -10.53% | [14. Events After the Reporting Period](index=9&type=section&id=14.%20Events%20After%20the%20Reporting%20Period) As of the approval date of the condensed consolidated financial statements, financial assets at fair value through profit or loss as of June 30, 2025, generated a net gain of approximately HKD 2,300,000 - As of the approval date of the condensed consolidated financial statements, financial assets at fair value through profit or loss as of June 30, 2025, generated a net gain of approximately **HKD 2,300,000**[20](index=20&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the operating performance and macroeconomic environment for the first half of 2025, analyzes changes in financial indicators, and outlines future investment strategies and market outlook, emphasizing diversified investment and strengthening financial position [Interim Dividend](index=10&type=section&id=Interim%20Dividend) The Board does not recommend paying an interim dividend for the period ended June 30, 2025, consistent with the first half of 2024 - The Board does not recommend paying an interim dividend for the period ended June 30, 2025[21](index=21&type=chunk) [Key Performance Indicators](index=10&type=section&id=Key%20Performance%20Indicators) As of June 30, 2025, the company's net assets decreased to approximately HKD 28,000,000, with net asset value per share at HKD 0.17, primarily due to the operating loss recorded during the period Key Performance Indicators | Indicator | June 30, 2025 | December 31, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net assets (approx., HKD) | 28,000,000 | 31,900,000 | (3,900,000) | -12.23% | | Net asset value per share (HKD) | 0.17 | 0.19 | (0.02) | -10.53% | - The decrease in net assets is primarily attributed to an operating loss of approximately **HKD 3,800,000** recorded during the period[22](index=22&type=chunk) [Investment Portfolio Review](index=10&type=section&id=Investment%20Portfolio%20Review) As of June 30, 2025, the investment portfolio primarily consisted of Hong Kong listed equities, totaling approximately HKD 20,200,000, largely consistent with the end of 2024 Investment Portfolio Review | Item | June 30, 2025 (approx., HKD) | December 31, 2024 (approx., HKD) | Change (approx., HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss investment portfolio | 20,200,000 | 20,100,000 | 100,000 | 0.50% | | - Current portion | 12,100,000 | 11,700,000 | 400,000 | 3.42% | | - Non-current portion | 8,100,000 | 8,400,000 | (300,000) | -3.57% | [Details of Major Investments](index=11&type=section&id=Details%20of%20Major%20Investments) The Group's major investments include several Hong Kong listed equities, with Xiangxian International Holdings Limited having the largest proportion of total assets, and Xiaomi Corporation and HSBC Holdings plc showing higher unrealized gains Details of Major Investments | Investment Name | Carrying Amount (HKD thousands) | Unrealized Fair Value Gains/(Losses) (HKD thousands) | Dividends Received (HKD thousands) | Percentage of Group's Total Assets | | :--- | :--- | :--- | :--- | :--- | | Xiangxian International Holdings Limited | 8,064 | (4,636) | – | 28.03% | | Xiaomi Corporation | 3,597 | 2,402 | – | 12.50% | | Luchi Culture Co Ltd | 1,738 | (2,757) | – | 6.04% | | HSBC Holdings plc | 1,900 | 490 | 71 | 6.60% | | Chow Tai Fook Jewellery Group Limited | 1,788 | 786 | – | 6.21% | | China Mobile Limited | 1,742 | 344 | 50 | 6.05% | | China Life Insurance Company Limited | 942 | 475 | – | 3.27% | | Longfor Group Holdings Limited | 463 | (81) | 12 | 1.61% | | **Total** | **20,234** | **(2,977)** | **133** | | [Operations Review](index=11&type=section&id=Operations%20Review) In the first half of 2025, global stock markets rose, with China's market driven by stimulus and AI advancements, leading to a 20% and 18.7% increase in the Hang Seng Index and Hang Seng Tech Index, respectively; however, the Group's listed equity investment portfolio recorded a net fair value gain of approximately HKD 2,200,000, underperforming the market due to the rally concentrating on major constituent stocks - In the first half of 2025, global stock markets generally rose, with China's stock market driven by government stimulus measures and advancements in artificial intelligence[25](index=25&type=chunk)[26](index=26&type=chunk) - The Hong Kong Hang Seng Index and Hang Seng Tech Index increased by **20%** and **18.7%** respectively[26](index=26&type=chunk) - The Group's listed equity investment portfolio recorded a net fair value gain of approximately **HKD 2,200,000**, but underperformed the market as the rally primarily concentrated on major Hang Seng Index constituent stocks[26](index=26&type=chunk) [Total Operating Income](index=12&type=section&id=Total%20Operating%20Income%20(MDA)) Despite the rise in the Hong Kong stock market, geopolitical tensions, tariffs, and inflation pressured its performance, leading to a decrease in total proceeds from investment disposals and investment income to approximately HKD 3,300,000 during the period - Despite the rise in the Hong Kong stock market, its performance was pressured by external uncertainties such as geopolitical tensions, tariffs, and inflation[27](index=27&type=chunk) - Total proceeds from investment disposals and investment income decreased to approximately **HKD 3,300,000** during the period (first half of 2024: approximately HKD 15,900,000)[27](index=27&type=chunk) [Revenue](index=12&type=section&id=Revenue) Interim revenue, primarily from listed securities dividend income, decreased to approximately HKD 147,000 during the period, partly due to reduced dividends from certain investee companies - Interim revenue, primarily from listed securities dividend income, decreased to approximately **HKD 147,000** during the period (first half of 2024: HKD 165,000)[28](index=28&type=chunk) - The decrease in revenue is partly attributed to reduced dividends from certain investee companies[28](index=28&type=chunk) [Operating Loss](index=12&type=section&id=Operating%20Loss) The interim operating loss was approximately HKD 3,800,000, a significant reduction from HKD 14,400,000 in the prior year, mainly due to a turnaround from loss to gain in fair value changes of financial assets at fair value through profit or loss - The interim operating loss was approximately **HKD 3,800,000** (first half of 2024: HKD 14,400,000), representing a significant reduction[29](index=29&type=chunk) - The reduction in operating loss is primarily due to the net fair value change of financial assets at fair value through profit or loss turning from a loss to a gain[29](index=29&type=chunk) [Net Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss](index=13&type=section&id=Net%20Gains%2F(Losses)%20on%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the listed equity investment portfolio recorded a net fair value gain of approximately HKD 2,200,000, compared to a net loss of approximately HKD 8,300,000 in the prior period, consistent with the upward trend of the Hang Seng Index and Hang Seng Tech Index - The listed equity investment portfolio recorded a net fair value gain of approximately **HKD 2,200,000**, compared to a net loss of approximately **HKD 8,300,000** in the prior period[30](index=30&type=chunk) - This performance is consistent with the market movements, where the Hang Seng Index and Hang Seng Tech Index rose by **20%** and **18.7%** respectively[30](index=30&type=chunk) [Other Income](index=13&type=section&id=Other%20Income%20(MDA)) Other income for the current period was negligible, while the prior period primarily included bank interest income and miscellaneous income - Other income for the current period was negligible, whereas the prior period primarily included bank interest income and miscellaneous income[31](index=31&type=chunk) [Other Gains and Losses](index=13&type=section&id=Other%20Gains%20and%20Losses%20(MDA)) Other gains and losses for the current period were negligible, while the prior period primarily included gains from disposal of property, plant and equipment and write-off of accrued expenses - Other gains and losses for the current period were negligible, whereas the prior period primarily included gains from disposal of property, plant and equipment and write-off of accrued expenses[32](index=32&type=chunk) [Administrative and Other Operating Expenses](index=13&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) Administrative expenses were approximately HKD 5,500,000, a decrease from the prior year due to lower operating costs, while other operating expenses remained stable Administrative and Other Operating Expenses | Item | 2025 (approx., HKD) | 2024 (approx., HKD) | Change (approx., HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Administrative expenses | 5,500,000 | 6,000,000 | (500,000) | -8.33% | | Employee benefit expenses | 4,300,000 | 4,300,000 | – | 0.00% | | Other operating expenses | 600,000 | 600,000 | – | 0.00% | - The decrease in administrative expenses is primarily due to a reduction in the Group's operating costs[33](index=33&type=chunk) [Interest in an Associate](index=13&type=section&id=Interest%20in%20an%20Associate) The Group holds a 30% equity interest in Superb King Limited and its subsidiaries, which had no carrying value at the reporting date - The Group holds a **30%** equity interest in Superb King Limited and its subsidiaries[34](index=34&type=chunk) - This interest had no carrying value at the reporting date[34](index=34&type=chunk) [Outlook](index=13&type=section&id=Outlook) Despite short-term global market challenges from geopolitics, tariffs, and inflation, investments in AI technology are expected to yield significant returns, and Hong Kong's "Stablecoin Ordinance" will strengthen digital asset regulation; the company will continue prudent and active investment, emphasizing diversification and considering strengthening its financial position - Global markets in the short term remain affected by geopolitical tensions, tariffs, inflation, interest rate, and monetary policy fluctuations[35](index=35&type=chunk) - Investments in artificial intelligence technology are expected to yield substantial returns, especially as costs decrease and applications expand from digital to physical domains[35](index=35&type=chunk) - Hong Kong's "Stablecoin Ordinance" became effective on August 1, 2025, establishing a licensing regime for fiat-backed stablecoin issuers, reinforcing Hong Kong's status as an international financial center[35](index=35&type=chunk) - The company will continue its investment activities in a prudent yet proactive manner, emphasizing diversified investment to manage risks in the second half of the year, and considering strengthening its financial position[36](index=36&type=chunk) [Financial Resources and Liquidity](index=14&type=section&id=Financial%20Resources%20and%20Liquidity) As of June 30, 2025, bank and cash balances and net current assets both decreased, primarily due to net cash used in operating activities, with the Group having no capital commitments Financial Resources and Liquidity | Indicator | June 30, 2025 (approx., HKD) | December 31, 2024 (approx., HKD) | Change (approx., HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bank and cash balances | 300,000 | 4,300,000 | (4,000,000) | -93.02% | | Net current assets | 12,500,000 | 15,800,000 | (3,300,000) | -20.89% | - The decrease in bank and cash balances is primarily attributed to net cash used in operating activities[37](index=37&type=chunk) - The Group had no capital commitments as of June 30, 2025[37](index=37&type=chunk) - As of June 30, 2025, the Group's capital gearing ratio was approximately **zero** (December 31, 2024: 0.2%)[38](index=38&type=chunk) [Use of Net Proceeds from Placing](index=14&type=section&id=Use%20of%20Net%20Proceeds%20from%20Placing) As of June 30, 2025, the company had fully utilized the net proceeds of approximately HKD 4,120,000 from the placing for potential investments and general working capital - On December 13, 2024, the company placed **28,284,000** new ordinary shares, raising net proceeds of approximately **HKD 4,120,000**[39](index=39&type=chunk) - As of June 30, 2025, the net proceeds from the placing have been fully utilized for potential investments and general working capital[39](index=39&type=chunk)[40](index=40&type=chunk) Use of Net Proceeds from Placing | Intended Use of Net Proceeds | Intended Use (HKD millions) | Amount Utilized as of December 31, 2024 (HKD millions) | Amount Utilized as of June 30, 2025 (HKD millions) | Unutilized Net Proceeds as of June 30, 2025 (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Potential investments | 2.00 | (0.68) | (1.32) | – | | General working capital | 2.12 | – | (2.12) | – | | **Total** | **4.12** | **(0.68)** | **(3.44)** | **–** | [Property, Plant and Equipment](index=15&type=section&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the value of property, plant and equipment was approximately HKD 7,500,000, with no additions during the period Property, Plant and Equipment | Item | June 30, 2025 (approx., HKD) | December 31, 2024 (approx., HKD) | Change (approx., HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Value of property, plant and equipment | 7,500,000 | 7,800,000 | (300,000) | -3.85% | - There were no additions to property, plant and equipment during the period[41](index=41&type=chunk) [Material Acquisitions and Disposals](index=15&type=section&id=Material%20Acquisitions%20and%20Disposals) During the period, the Group did not undertake any material acquisitions or disposals involving major subsidiaries - The Group did not undertake any material acquisitions or disposals involving major subsidiaries during the period[42](index=42&type=chunk) [Capital Structure](index=15&type=section&id=Capital%20Structure) As of the reporting date, the total number of issued shares of the company remained at 169,707,187 shares, with a par value of HKD 0.01 each - As of the reporting date, the total number of issued shares of the company remained at **169,707,187** shares, with a par value of **HKD 0.01** each[43](index=43&type=chunk) [Share Option Scheme](index=15&type=section&id=Share%20Option%20Scheme) During the period, no share options lapsed, were granted, exercised, or cancelled, and there were no outstanding share options as of June 30, 2025 - During the period, no share options lapsed, were granted, exercised, or cancelled[44](index=44&type=chunk) - As of June 30, 2025, there were no outstanding share options[44](index=44&type=chunk) [Events After the Reporting Period](index=15&type=section&id=Events%20After%20the%20Reporting%20Period%20(MDA)) As of the approval date of the condensed consolidated financial statements, financial assets at fair value through profit or loss as of June 30, 2025, generated a net gain of approximately HKD 2,300,000 - As of the approval date of the condensed consolidated financial statements, financial assets at fair value through profit or loss as of June 30, 2025, generated a net gain of approximately **HKD 2,300,000**[45](index=45&type=chunk) [Foreign Exchange Risk](index=15&type=section&id=Foreign%20Exchange%20Risk) The Board believes the Group is not exposed to significant foreign exchange fluctuation risk as the investment portfolio primarily consists of Hong Kong listed equities denominated in HKD - The investment portfolio primarily consists of Hong Kong listed equities, with other funds mainly denominated in HKD[46](index=46&type=chunk) - The Board believes the Group is not exposed to significant foreign exchange fluctuation risk as of the reporting date[46](index=46&type=chunk) [Borrowings and Pledges of Group Assets](index=15&type=section&id=Borrowings%20and%20Pledges%20of%20Group%20Assets) As of June 30, 2025, the Group had not pledged its leasehold land and buildings for any bank loans, unlike December 31, 2024 - As of June 30, 2025, the Group had not pledged its leasehold land and buildings for any bank loans[47](index=47&type=chunk) - As of December 31, 2024, the Group had pledged leasehold land and buildings with a carrying value of **HKD 7,800,000** for bank loans of **HKD 300,000**[47](index=47&type=chunk) [Human Resources](index=15&type=section&id=Human%20Resources) As of June 30, 2025, the company's employee count remained at 15, with remuneration packages aligned with market practices and determined by performance and experience - As of June 30, 2025, the company's employee count was **15**, consistent with December 31, 2024[48](index=48&type=chunk) - Remuneration packages for employees and directors are consistent with current market practices and determined by performance and experience[48](index=48&type=chunk) [Corporate Governance](index=16&type=section&id=Corporate%20Governance) This section outlines the company's commitment to corporate governance, discloses two exceptions to the Corporate Governance Code, and describes the composition and responsibilities of the Audit, Remuneration, and Nomination Committees [Corporate Governance Practices](index=16&type=section&id=Corporate%20Governance%20Practices) The company is committed to high standards of corporate governance and complies with the Corporate Governance Code in Appendix C1 of the Listing Rules, with two exceptions regarding meeting document delivery and the separation of Chairman and CEO roles - The company is committed to upholding high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[49](index=49&type=chunk) - There are two exceptions: Code Provision C.5.8 (meeting documents not delivered three days in advance) and Code Provision C.2.1 (Chairman and Chief Executive Officer roles not separated)[49](index=49&type=chunk)[50](index=50&type=chunk) - The responsibilities of the Chief Executive Officer have been assumed by other members of the Board and senior management[51](index=51&type=chunk) [Audit Committee](index=17&type=section&id=Audit%20Committee) The Audit Committee comprises three independent non-executive directors, with Mr. Tam Yuk Sang as Chairman, responsible for reviewing accounting principles, financial reporting matters, and the interim financial statements - The Audit Committee comprises three independent non-executive directors: Mr. Tam Yuk Sang (Chairman), Dr. Ng Chi Yeung, and Ms. Law So Fun[52](index=52&type=chunk) - The Committee has reviewed the accounting principles and practices adopted by the company and discussed financial reporting matters, including the unaudited condensed consolidated financial statements[52](index=52&type=chunk) [Remuneration Committee](index=17&type=section&id=Remuneration%20Committee) The Remuneration Committee consists of three independent non-executive directors, with Mr. Tam Yuk Sang as Chairman - The Remuneration Committee comprises three independent non-executive directors: Mr. Tam Yuk Sang (Chairman), Dr. Ng Chi Yeung, and Ms. Law So Fun[53](index=53&type=chunk) [Nomination Committee](index=17&type=section&id=Nomination%20Committee) The Nomination Committee comprises one executive director and three independent non-executive directors, with Dr. Ng Chi Yeung as Chairman - The Nomination Committee comprises Executive Director Mr. Li Kwok Leung and three independent non-executive directors: Dr. Ng Chi Yeung (Chairman), Mr. Tam Yuk Sang, and Ms. Law So Fun[54](index=54&type=chunk) [Directors' Securities Transactions](index=17&type=section&id=Directors'%20Securities%20Transactions) The company has adopted the Model Code in Appendix C3 of the Listing Rules as the standard for directors' securities transactions, with all directors confirming full compliance - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the standard for directors' securities transactions[55](index=55&type=chunk) - For the six months ended June 30, 2025, all directors confirmed full compliance with the Model Code[55](index=55&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=17&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%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 for the six months ended June 30, 2025[56](index=56&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) This section provides information on the publication channels for the interim results announcement and interim report, and includes the Board's appreciation to management and staff, and lists the Board members as of the announcement date [Publication of Interim Results Announcement and Interim Report](index=18&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders and posted on the websites in due course - This interim results announcement has been published on the HKEX website (http://www.hkex.com.hk) and the company's website (http://www.irasia.com/listco/hk/810)[57](index=57&type=chunk) - The interim report will be dispatched to shareholders and published on the aforementioned websites in due course[57](index=57&type=chunk) [Appreciation](index=18&type=section&id=Appreciation) The Chairman of the Board, on behalf of the company, extends sincere gratitude to fellow directors, management, and staff for their support and contributions - The Chairman of the Board, on behalf of the company, extends sincere gratitude to fellow directors, management, and staff for their support and contributions[58](index=58&type=chunk) [Board Composition](index=18&type=section&id=Board%20Composition) As of the announcement date, August 27, 2025, the Board of Directors comprises one executive director, one non-executive director, and three independent non-executive directors - As of the announcement date, August 27, 2025, the Executive Director of the Board is Mr. Li Kwok Leung[60](index=60&type=chunk) - The Non-executive Director is Dr. Lam Man Chan (who also serves as Chairman)[59](index=59&type=chunk)[60](index=60&type=chunk) - The Independent Non-executive Directors are Dr. Ng Chi Yeung, Mr. Tam Yuk Sang, and Ms. Law So Fun[60](index=60&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 截至二零二五年六月三十日止六個月的中期業績公告 業績摘要 遠洋服務控股有限公司 （於開曼群島註冊成立的有限公司） 股份代號：06677 – 1 – • 於2025年6月30日，物業管理服務的總合約建築面積為121.6百萬平方米及總在管建築面積 為93.5百萬平方米，分別較於2024年6月30日下降約9%及約7%。於報告期內，本集團繼續 積極退出低效能項目。 • 收入較2024年同期減少約3%至人民幣1,385.8百萬元（2024年上半年：人民幣1,436.0百萬 元），主要由於考慮到國內宏觀經濟環境低迷和房地產市場下行的不利影響，報告期內本 集團主動退出回款保障不理想的業務和項目。 • 毛利較2024年同期減少約50%至人民幣162.6百萬元（2024年上半年：人民幣327.4百萬元）， 毛利率約為12%（2024年上半年：23%）。 • 截至2025年6月30日止六個月，本公司擁有人應佔虧損為人民幣3 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 MAO GEPING COSMETICS CO., LTD. 毛戈平化妝品股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：1318） 截 至2025年6月30日止六個月之中期業績公告 毛 戈 平 化 妝 品 股 份 有 限 公 司（「本公司」）董 事 會（「董事會」）謹 此 公 佈 本 公 司 及 其 附 屬 公 司（「本集團」）截 至2025年6月30日 止 六 個 月 之 未 經 審 計 業 績。 本公告列載本公司2025年 中 期 報 告 全 文，並 符 合 香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則 中 有 關 中 期 業 績 初 步 公 告 附 載 的 資 料 之 要 求。 本公司審計委員會已審閱本集團截至2025年6月30日止六個月之中期 ...

[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 Group reported a net loss of RMB 14.49 million, a significant decline from a net profit of RMB 38.06 million in the prior year, with revenue decreasing by 43.4% to RMB 808 million and gross profit by 29.7% Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | Six Months Ended June 30, 2025 (RMB Thousand) | Six Months Ended June 30, 2024 (RMB Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 808,208 | 1,427,976 | -43.4% | | Cost of sales | (734,515) | (1,323,177) | -44.5% | | Gross profit | 73,693 | 104,799 | -29.7% | | (Loss) Profit before tax | (14,802) | 40,041 | Turned to loss | | (Loss) Profit for the period | (14,489) | 38,062 | Turned to loss | | Basic and diluted (loss) earnings per share (RMB cents) | (1.85) | 4.88 | Turned to loss | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and liabilities decreased, with a slight reduction in net current assets and total equity, but an increase in bank balances and cash Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 214,039 | 190,771 | +12.2% | | Current assets | 1,228,662 | 1,531,560 | -19.8% | | Current liabilities | 744,051 | 996,300 | -25.3% | | Net current assets | 484,611 | 535,260 | -9.46% | | Total assets less current liabilities | 698,650 | 726,031 | -3.77% | | Non-current liabilities | 4,834 | 3,736 | +29.4% | | Total equity | 693,816 | 722,295 | -3.94% | | Trade receivables | 429,247 | 660,409 | -35.0% | | Trade payables | 59,099 | 83,252 | -29.0% | | Bank balances and cash | 485,408 | 448,633 | +8.2% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, accounting policies, and changes in financial data, including revenue, segment information, other income, tax, earnings per share, receivables, payables, share capital, and fair value measurement of financial instruments, providing deeper context for understanding the financial position [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) The Group's condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and the Listing Rules, primarily engaging in end-to-end cross-border delivery, freight forwarding, and other logistics services - The Company was incorporated in the Cayman Islands on November 24, 2022, and listed on the Main Board of the Stock Exchange of Hong Kong on December 22, 2023[9](index=9&type=chunk) - The Group is principally engaged in providing end-to-end cross-border delivery services, freight forwarding services, and other logistics services[9](index=9&type=chunk) - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[9](index=9&type=chunk) [2. Accounting Policies](index=6&type=section&id=2.%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, consistent with the annual consolidated financial statements for the year ended December 31, 2024, with no significant impact from new HKFRS amendments during the period - The condensed consolidated financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair value at the end of each reporting period[10](index=10&type=chunk) - The application of the amendments to Hong Kong Financial Reporting Standards in the current interim period has had no significant impact on the Group’s financial performance and position[11](index=11&type=chunk) [3. Revenue](index=7&type=section&id=3.%20Revenue) The Group's total revenue for the six months ended June 30, 2025, was RMB 808 million, a 43.4% decrease from RMB 1,428 million in the prior year, with all major service lines experiencing reductions, particularly freight forwarding services Revenue by Service Line | Service Line | Six Months Ended June 30, 2025 (RMB Thousand) | Six Months Ended June 30, 2024 (RMB Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | End-to-end cross-border delivery services | 501,831 | 648,712 | -22.6% | | Freight forwarding services | 46,617 | 315,065 | -85.2% | | Other logistics services | 259,760 | 464,199 | -44.0% | | **Total Revenue** | **808,208** | **1,427,976** | **-43.4%** | Revenue Recognition Timing | Revenue Recognition Timing | Six Months Ended June 30, 2025 (RMB Thousand) | Six Months Ended June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Over time | 501,831 | 648,712 | | At a point in time | 306,377 | 779,264 | | **Total** | **808,208** | **1,427,976** | [4. Segment Information](index=8&type=section&id=4.%20Segment%20Information) The Group's operating decision-makers primarily review overall operating results, with Mainland China remaining the main revenue source despite a significant year-on-year decline, while Hong Kong revenue grew substantially, and key customer A1's contribution decreased significantly - The Group is principally engaged in providing end-to-end cross-border delivery services, freight forwarding services, and other logistics services, with the chief operating decision-maker reviewing the Group's overall operating results[17](index=17&type=chunk) Revenue by Geographical Location | Geographical Location | Six Months Ended June 30, 2025 (RMB Thousand) | Six Months Ended June 30, 2024 (RMB Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 715,830 | 1,386,260 | -48.4% | | Hong Kong | 69,518 | 21,629 | +221.4% | | United States | 8,728 | 11,907 | -26.7% | | Singapore | 12,427 | 5,263 | +136.1% | | United Kingdom | — | 93 | -100% | | Other countries and regions | 1,705 | 2,824 | -39.6% | | **Total** | **808,208** | **1,427,976** | **-43.4%** | Revenue from Major Customers | Customer | Six Months Ended June 30, 2025 (RMB Thousand) | Six Months Ended June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Customer A1 | 243,654 | 748,424 | | Customer B2 | Not applicable | 151,030 | [5. Other Income, Gains and Losses, Net](index=10&type=section&id=5.%20Other%20Income%2C%20Gains%20and%20Losses%2C%20Net) Net other income, gains, and losses improved to a loss of RMB 5.2 million from RMB 9.2 million in the prior year, primarily due to reduced exchange losses and increased bank interest income, partially offset by decreased government grants and increased write-offs of prepayments Other Income, Gains and Losses, Net | Item | Six Months Ended June 30, 2025 (RMB Thousand) | Six Months Ended June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank interest income | 3,623 | 2,798 | | Government grants | 954 | 3,214 | | (Loss) gain from fair value changes of financial assets at fair value through profit or loss | (55) | 518 | | Exchange differences | (6,299) | (17,646) | | Write-off of prepayments | (3,654) | — | | Miscellaneous income | 379 | 1,893 | | **Total** | **(5,205)** | **(9,230)** | - Exchange losses decreased from **RMB 17.6 million to RMB 6.3 million**, and bank interest income increased by approximately **RMB 0.8 million**[24](index=24&type=chunk) - Government grants decreased by approximately **RMB 2.3 million**, and write-off of prepayments increased by approximately **RMB 3.7 million**[24](index=24&type=chunk) [6. Income Tax (Credit) Expense](index=11&type=section&id=6.%20Income%20Tax%20(Credit)%20Expense) This period saw an income tax credit of RMB 0.31 million, a shift from an expense of RMB 1.98 million in the prior year, primarily due to increased deferred tax credits resulting from the period's loss and higher impairment of trade receivables' expected credit losses Income Tax (Credit) Expense | Item | Six Months Ended June 30, 2025 (RMB Thousand) | Six Months Ended June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current income tax | 4,257 | 3,095 | | Deferred tax | (4,570) | (1,116) | | **Total** | **(313)** | **1,979** | - The fluctuation in income tax expense was mainly due to the Group's loss position during the period and an increase in deferred tax credit resulting from increased impairment of expected credit losses on trade receivables[56](index=56&type=chunk) [7. (Loss) Profit for the Period](index=11&type=section&id=7.%20(Loss)%20Profit%20for%20the%20Period) The period recorded a loss of RMB 14.49 million, primarily impacted by reduced gross profit, increased impairment losses, and higher finance costs, partially offset by improved other losses and decreased income tax expense Selected Items Affecting (Loss) Profit for the Period | Item | Six Months Ended June 30, 2025 (RMB Thousand) | Six Months Ended June 30, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Total staff costs | 44,272 | 38,702 | | Research and development costs | 973 | 652 | | Impairment loss on goodwill | 18,099 | — | | Impairment loss on trade and other receivables | 14,423 | 7,423 | | Depreciation of property, plant and equipment | 2,270 | 2,531 | | Depreciation of right-of-use assets | 4,447 | 5,163 | - The loss for the period was mainly attributable to a decrease in gross profit of approximately **RMB 31.1 million**, an increase in impairment losses of approximately **RMB 25.1 million**, and an increase in finance costs of approximately **RMB 2.0 million**[57](index=57&type=chunk) - This was partially offset by an improvement in other losses of approximately **RMB 2.0 million** and a decrease in income tax expense of approximately **RMB 2.3 million**[57](index=57&type=chunk) [8. Dividends](index=12&type=section&id=8.%20Dividends) For the period ended June 30, 2025, the Group neither paid nor declared any dividends, nor were any dividends proposed - No dividends were paid or declared for the period ended June 30, 2025, and no dividends have been proposed since the end of the reporting period (six months ended June 30, 2024: nil)[28](index=28&type=chunk) [9. (Loss) Earnings Per Share](index=12&type=section&id=9.%20(Loss)%20Earnings%20Per%20Share) Basic and diluted loss per share attributable to owners of the Company was RMB 1.85 cents, compared to earnings per share of RMB 4.88 cents in the prior year, with basic and diluted figures being the same due to no potentially dilutive ordinary shares (Loss) Earnings Per Share | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | (Loss) profit for the purpose of calculating basic and diluted (loss) earnings per share (RMB Thousand) | (14,350) | 38,093 | | Weighted average number of ordinary shares (Thousand shares) | 777,212 | 780,000 | | Basic and diluted (loss) earnings per share (RMB cents) | (1.85) | 4.88 | - The diluted (loss) earnings per share is the same as the basic (loss) earnings per share as there were no potentially dilutive ordinary shares outstanding during both periods[30](index=30&type=chunk) [10. Trade Receivables](index=13&type=section&id=10.%20Trade%20Receivables) As of June 30, 2025, net trade receivables were RMB 429 million, a 35.0% decrease from December 31, 2024, primarily due to reduced average monthly revenue, with a significant drop in receivables within 3 months Trade Receivables | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade receivables | 479,457 | 696,121 | | Less: Provision for impairment loss on trade receivables | (50,210) | (35,712) | | **Net** | **429,247** | **660,409** | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 3 months | 178,474 | 527,224 | | 4 to 12 months | 241,769 | 128,561 | | Over 1 to 2 years | 9,004 | 4,624 | | **Total** | **429,247** | **660,409** | - The Group grants credit periods of 0 to 90 days to its trade customers and does not hold any collateral over its trade receivables[32](index=32&type=chunk) [11. Trade Payables](index=14&type=section&id=11.%20Trade%20Payables) As of June 30, 2025, trade payables were RMB 59.1 million, a 29.0% decrease from December 31, 2024, primarily due to reduced average monthly cost of sales, with an average credit period of up to 90 days Trade Payables | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade payables | 59,099 | 83,252 | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 3 months | 46,991 | 73,507 | | 4 to 12 months | 7,521 | 7,562 | | Over 1 to 2 years | 3,380 | 1,339 | | Over 2 to 3 years | 1,207 | 844 | | **Total** | **59,099** | **83,252** | - The average credit period is up to 90 days, and the Group has financial risk management policies or plans in place for the credit period of its payables[34](index=34&type=chunk) [12. Share Capital](index=14&type=section&id=12.%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid ordinary share capital remained at RMB 7.075 million, with 780 million shares, consistent with December 31, 2024 Share Capital | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Issued and fully paid share capital | 7,075 | 7,075 | Issued Shares | Item | Number of Issued Shares (Thousand shares) | Share Capital (RMB Thousand) | | :--- | :--- | :--- | | As at January 1, 2024, December 31, 2024, January 1, 2025 and June 30, 2025 | 780,000 | 7,075 | [13. Fair Value Measurement of Financial Instruments](index=15&type=section&id=13.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) The Group's fair value measurement of financial instruments primarily uses Level 2 inputs, with a slight decrease in the fair value of unlisted funds, and management believes the carrying amounts of other financial assets and liabilities at amortized cost approximate their fair values - The fair value of all financial assets and financial liabilities is determined using generally accepted pricing models based on discounted cash flow analysis[36](index=36&type=chunk) Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss - Unlisted funds | 59,975 | 60,030 | - The fair value measurement of unlisted funds is classified as Level 2, with the valuation method being the fund manager's quotation[39](index=39&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, market environment, future outlook, and detailed financial analysis for the six months ended June 30, 2025, highlighting a shift from profit to loss due to US tariff policy changes, while outlining strategic responses including platform cooperation, business expansion, overseas deployment, and increased AI technology investment [Business Review](index=17&type=section&id=Business%20Review) In the first half of 2025, the Group faced challenges from US tariff policy changes, leading to a decline in total revenue and a shift from profit to loss, yet the Chinese foreign trade and cross-border e-commerce markets continued to grow, prompting the Group to adjust service strategies and advance overseas expansion [Market Overview](index=17&type=section&id=Market%20Overview) In the first half of 2025, China's goods trade imports and exports grew by 2.9% year-on-year, with exports up 7.2%, and cross-border e-commerce imports and exports increased by 5.7%, outpacing overall foreign trade and becoming a new growth driver for cross-border logistics - In the first half of 2025, China's total goods trade imports and exports reached **RMB 21.79 trillion**, a year-on-year increase of **2.9%**, with total exports of approximately **RMB 13 trillion**, a year-on-year increase of **7.2%**[40](index=40&type=chunk) - In the first half of 2025, China's cross-border e-commerce imports and exports amounted to approximately **RMB 1.32 trillion**, a year-on-year increase of **5.7%**, 2.8 percentage points higher than the overall growth rate of China's foreign trade[41](index=41&type=chunk) [Company Business and Response Strategies](index=18&type=section&id=Company%20Business%20and%20Response%20Strategies) The Group's total revenue for the first half decreased by 43.4% year-on-year to approximately RMB 800 million, resulting in a loss of RMB 14.4 million, primarily due to changes in US tariff policies, prompting the Group to monitor tariffs, optimize logistics routes, and strengthen overseas infrastructure Key Financial Performance | Indicator | First Half 2025 (RMB Million) | First Half 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 800 | 1,400 | -43.4% | | (Loss) Profit attributable to owners of the Company | (14.4) | 38.1 | Turned to loss | - Changes in US tariff policies impacted the Group's export business to the United States, leading to a decline in revenue and profit[42](index=42&type=chunk) - Response measures include: closely monitoring US tariff policies and passing on costs; designing optimized logistics routes and expanding into emerging markets such as Southeast Asia, South America, and the Middle East; and strengthening infrastructure such as overseas warehouses, customs clearance, and last-mile delivery[43](index=43&type=chunk) [Business Breakthroughs and Developments](index=19&type=section&id=Business%20Breakthroughs%20and%20Developments) In the first half of 2025, the Group achieved several business breakthroughs, including acquiring a stake in a US logistics company to enhance its overseas network, Hangzhou Faryuan joining Amazon's service provider network and being recognized as a benchmark logistics enterprise, and the Company receiving the 'Annual Value Company' award at the '2024 Hong Kong Stock Golden Intelligence Awards' - Ingrun Holdings Limited, an indirect wholly-owned subsidiary of the Company, acquired a **30% equity interest** in Advanced Logistics Solutions LLC, a US logistics company, to enhance its overseas logistics network competitiveness[44](index=44&type=chunk) - Hangzhou Faryuan International Logistics Co, Ltd. officially joined the Amazon service provider network and was recognized as a benchmark logistics enterprise for Hangzhou City in 2025[45](index=45&type=chunk) - The Company received the "Annual Value Company" award at the inaugural "2024 Hong Kong Stock Golden Intelligence Awards"[45](index=45&type=chunk) [Future Outlook and Prospects](index=20&type=section&id=Future%20Outlook%20and%20Prospects) The Group anticipates continued growth in the global cross-border logistics industry, despite potential short-term slowdowns due to US tariffs, with future strategies focusing on deepening platform cooperation, expanding business scale, accelerating overseas deployment, and increasing AI technology investment for digital and intelligent operations [Market Outlook](index=20&type=section&id=Market%20Outlook) Advances in logistics technology, including automation, data analytics, and AI, are expected to enhance supply chain efficiency, while global trade and cross-border e-commerce growth will drive cross-border transactions, with China's cross-border e-commerce logistics market projected to reach RMB 5.7 trillion by 2029, growing at a CAGR of 7.3% from 2024 to 2029, though short-term growth may slow due to US tariffs - Advances in logistics technology, such as automation, data analytics, and artificial intelligence, are expected to further enhance supply chain efficiency[46](index=46&type=chunk) - The market size of China's cross-border e-commerce logistics increased from **RMB 1.9 trillion in 2019 to RMB 4.0 trillion in 2024**, with a compound annual growth rate of **16.1%**[46](index=46&type=chunk) - The market size of China's cross-border e-commerce logistics is expected to reach **RMB 5.7 trillion by 2029**, with a compound annual growth rate of **7.3%** from 2024 to 2029, but short-term growth may slow due to US tariffs[46](index=46&type=chunk) [Development Strategies](index=20&type=section&id=Development%20Strategies) The Group will deepen cooperation with leading cross-border e-commerce platforms, expand direct customer base, scale up service networks, accelerate overseas logistics network deployment to enhance cross-border delivery and localized fulfillment, and continuously increase technology investment, integrating AI to drive digital transformation - Continue to deepen strategic cooperation with major platforms, focusing on in-depth collaboration with leading cross-border e-commerce platforms, and further expanding to small and medium-sized direct customers[47](index=47&type=chunk) - Expand business scale and service capabilities, expanding or upgrading existing service outlets as needed to improve service capacity[47](index=47&type=chunk) - Accelerate overseas deployment, extending the overseas logistics network, enhancing cross-border delivery and overseas localized fulfillment support services, and promoting the construction of overseas logistics infrastructure[47](index=47&type=chunk) - Continuously increase technology investment, deeply integrating AI technology to enhance digitalization and build an intelligent, data-driven enterprise ecosystem[48](index=48&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) The Group's financial performance in the first half of 2025 was significantly impacted by US tariff policies, leading to substantial declines in revenue and gross profit and a shift from profit to loss, exacerbated by increased impairment losses and finance costs, despite an improved gross margin; however, the Group maintains sufficient liquidity, a reduced gearing ratio, and has reallocated IPO proceeds to enhance overseas logistics and intelligent operations [Financial Overview](index=21&type=section&id=Financial%20Overview) In the first half of 2025, the Group's revenue decreased by 43.4% to RMB 800 million, primarily due to US tariff policy changes, leading to a corresponding reduction in cost of sales and a 29.7% decline in gross profit, though gross margin improved due to service mix shifts; the period saw a loss, driven by lower gross profit, increased impairment losses, and higher finance costs, while both trade receivables and payables decreased with reduced business volume - Revenue: For the six months ended June 30, 2025, revenue was approximately **RMB 800 million**, a decrease of approximately **43.4%** compared to the same period last year, mainly due to reduced freight volume to the United States caused by changes in US tariff policies[49](index=49&type=chunk) - Cost of sales: Cost of sales decreased by approximately **44.5%** to approximately **RMB 700 million**, consistent with the change in revenue[50](index=50&type=chunk) - Gross profit: Gross profit decreased by approximately **29.7%** to approximately **RMB 73.7 million**, but the gross profit margin increased from **7.3% to 9.1%**, mainly due to a decrease in the proportion of lower-margin freight forwarding services and an increase in the gross profit margin of other logistics services[51](index=51&type=chunk)[52](index=52&type=chunk) - Other income, gains and losses, net: Net loss improved from **RMB 9.2 million to RMB 5.2 million**, mainly due to reduced exchange losses and increased bank interest income[53](index=53&type=chunk) - Impairment loss on trade and other receivables: Impairment loss increased to approximately **RMB 14.4 million**, mainly due to a higher expected credit loss rate resulting from slower customer repayments[54](index=54&type=chunk) - Finance costs: Finance costs increased by **25.5%** to approximately **RMB 9.7 million**, primarily due to an increase in bank borrowings during the period[55](index=55&type=chunk) - Income tax expense: Shifted from an expense to an income tax credit of approximately **RMB 0.3 million**, mainly due to the loss position during the period and an increase in deferred tax credit[56](index=56&type=chunk) - Loss for the period: Recorded a loss of approximately **RMB 14.4 million**, a reversal from a profit in the prior year, mainly impacted by reduced gross profit, increased impairment losses, and higher finance costs[57](index=57&type=chunk) - Trade receivables: Decreased by **35.0%** to approximately **RMB 429.2 million**, mainly due to a decrease in average monthly revenue during the period[58](index=58&type=chunk) - Trade payables: Decreased by **29.0%** to approximately **RMB 59.1 million**, mainly due to a decrease in average monthly cost of sales during the period[59](index=59&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=24&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group primarily funds its operations through cash generated from operations and bank borrowings, expecting sufficient working capital, with net current assets of RMB 485 million, bank balances and cash of RMB 485 million, reduced bank borrowings of RMB 631 million, and RMB 104 million in unutilized bank facilities as of June 30, 2025 - The Group primarily funds its operations through cash generated from operations and bank borrowings, and is expected to have sufficient working capital[60](index=60&type=chunk) Liquidity and Financial Resources | Indicator | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | | :--- | :--- | :--- | | Net current assets | 484.6 | 535.3 | | Bank balances and cash | 485.4 | 448.6 | | Bank borrowings | 630.9 | 857.4 | | Unutilized bank facilities | 103.9 | Not applicable | [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio decreased to 93.0% from 120.0% on December 31, 2024, primarily due to a reduction in bank borrowings, partially offset by an increase in lease liabilities Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 93.0% | 120.0% | - The decrease in the gearing ratio was mainly due to a reduction in bank borrowings, partially offset by an increase in lease liabilities[62](index=62&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from business transactions denominated in currencies other than RMB and IPO proceeds denominated in HKD, actively monitoring exchange rate fluctuations and implementing hedging measures when necessary, with no significant foreign exchange difficulties or liquidity issues encountered as of June 30, 2025 - The Group is exposed to foreign exchange risk to a certain extent from purchases and sales denominated in currencies other than RMB, including but not limited to USD and HKD[63](index=63&type=chunk) - The Group closely monitors the risk of exchange rate fluctuations and will take appropriate measures (such as hedging) to control exchange rate fluctuation risk when necessary[63](index=63&type=chunk) [Contingent Liabilities](index=25&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[64](index=64&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had pledged trade receivables, interests in buildings, and time deposits as collateral for secured bank borrowings, with the total value of pledged assets decreasing compared to December 31, 2024 Pledged Assets | Pledged Assets | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | | :--- | :--- | :--- | | Trade receivables | 258.8 | 494.17 | | Interests in buildings | 2.30 | 2.56 | | Time deposits | 185.00 | 245.00 | - The above assets were pledged as collateral for secured bank borrowings granted to the Group[65](index=65&type=chunk) [Use of Net Proceeds from Share Offer](index=25&type=section&id=Use%20of%20Net%20Proceeds%20from%20Share%20Offer) The net proceeds from the share offer amounted to RMB 58.79 million, lower than disclosed in the prospectus, with the Company reallocating RMB 39.81 million originally for China service network expansion to enhance overseas logistics capabilities, build a global intelligent operation command center, and supplement working capital to address market instability and seize opportunities - The net proceeds from the share offer were approximately **RMB 58.79 million**, which was lower than the **RMB 80.00 million** disclosed in the prospectus[66](index=66&type=chunk) - The Company plans to reallocate **RMB 39.81 million** originally designated for the expansion and upgrade of service outlets in China[67](index=67&type=chunk) - The reallocated uses include: **RMB 19.81 million** for enhancing overseas logistics capabilities; **RMB 16.00 million** for building a global intelligent operation command center; and **RMB 4.00 million** for working capital and general corporate purposes[67](index=67&type=chunk) Use of Net Proceeds from Share Offer | Intended Use | Original Estimated Amount (RMB Million) | Adjusted Available Amount (RMB Million) | Amount Utilized as at June 30, 2025 (RMB Million) | Amount Unutilized as at June 30, 2025 (RMB Million) | | :--- | :--- | :--- | :--- | :--- | | Achieving larger scale and expanding the Group's business scope (Original use) | 65.5 | 48.15 | 8.34 | — | | Enhancing overseas logistics capabilities (New use) | — | 19.81 | 0.51 | 19.30 | | Building a global intelligent operation command center (New use) | — | 16.00 | 16.00 | — | | Investing in and upgrading the Group's information technology systems | 14.4 | 10.58 | 6.51 | 4.07 | | Working capital and general corporate purposes | 0.1 | 4.06 | 4.06 | — | | **Total** | **80.0** | **58.79** | **35.42** | **23.37** | [Other Information](index=27&type=section&id=Other%20Information) This section covers the Group's human resources, remuneration policy, dividend policy, share award scheme, corporate governance practices, and other compliance information, noting a slight decrease in employees but an increase in total employee costs, no interim dividends declared, adoption of a share award scheme without current grants, separation of Chairman and CEO roles, and audit committee review of interim results [Human Resources and Remuneration Policy](index=27&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 465 full-time employees, a slight decrease from the prior year, with total employee costs increasing to approximately RMB 44.3 million; the Group provides regular training and mentorship, with remuneration based on qualifications, experience, capabilities, and market levels, and contributes to mandatory social security funds for Chinese employees Human Resources | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of full-time employees | 465 | 477 | | Total employee costs (RMB Million) | 44.3 | 38.70 | - The Group provides regular internal and external training for employees, as well as induction training and mentorship programs for new hires[69](index=69&type=chunk) - The remuneration policy is determined based on employees' qualifications, experience, capabilities, and current market remuneration levels, and the Group contributes to mandatory social security funds for its employees in China[69](index=69&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board of Directors resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[70](index=70&type=chunk) [Share Award Scheme](index=27&type=section&id=Share%20Award%20Scheme) The Company adopted a Share Award Scheme on April 9, 2025, to recognize and incentivize eligible participants, with a maximum of 78,000,000 award shares (approximately 10% of issued share capital), though no award shares had been granted as of June 30, 2025 - The Company adopted a Share Award Scheme on April 9, 2025, to recognize and incentivize eligible participants for their contributions to the Group's growth and development[71](index=71&type=chunk) - The maximum number of award shares shall not exceed **78,000,000 shares**, representing approximately **10%** of the Company's issued share capital as at the adoption date[71](index=71&type=chunk) - No award shares have been granted from the adoption date up to June 30, 2025[71](index=71&type=chunk) [Standard Code for Securities Transactions by Directors](index=28&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance for the six months ended June 30, 2025 - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[72](index=72&type=chunk) - Each Director confirmed that they have complied with the Standard Code for the six months ended June 30, 2025[72](index=72&type=chunk) [Events After Reporting Period](index=28&type=section&id=Events%20After%20Reporting%20Period) Except as disclosed in this announcement, no significant post-reporting period events occurred from June 30, 2025, up to the date of this announcement - Save as disclosed in this announcement, there have been no significant events after the reporting period from June 30, 2025, up to the date of this announcement[73](index=73&type=chunk) [Corporate Governance](index=28&type=section&id=Corporate%20Governance) The Company is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, with the roles of Chairman and Chief Executive Officer, previously held by the same individual, now separated since March 1, 2025 - The Company has adopted the principles of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules as its own corporate governance code[74](index=74&type=chunk) - The roles of Chairman and Chief Executive Officer were previously held by Mr. Wang Quan, but since March 1, 2025, Mr. Wang Quan resigned as Chief Executive Officer and Mr. Wang Tiantian was appointed as Chief Executive Officer, thus separating the roles[74](index=74&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 six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities during the six months ended June 30, 2025[75](index=75&type=chunk) [Arrangements to Purchase Shares or Debentures](index=29&type=section&id=Arrangements%20to%20Purchase%20Shares%20or%20Debentures) During the six months ended June 30, 2025, neither the Company, its holding company, nor any of its subsidiaries or fellow subsidiaries were party to any arrangements enabling directors or their spouses or children under 18 to acquire benefits by purchasing shares or debt securities of the Company or any other body corporate - At no time during the six months ended June 30, 2025, was the Company, its holding company, or any of its subsidiaries or fellow subsidiaries a party to any arrangements to enable the Directors or any of their spouses or children under 18 years of age to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate[76](index=76&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Company's Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2025, discussing accounting principles and practices with management, and confirmed that the results were prepared in compliance with applicable accounting standards and Listing Rules, with sufficient disclosure, and were reviewed by the Company's auditor in accordance with HKSRE 2410 - The Company’s Audit Committee has reviewed the unaudited interim results of the Group for the six months ended June 30, 2025, and discussed with the management the accounting principles and practices adopted[77](index=77&type=chunk) - The Audit Committee is of the opinion that the preparation of such results complied with the applicable accounting standards and requirements and the Listing Rules, and that adequate disclosures have been made[77](index=77&type=chunk) - The unaudited interim results of the Group for the six months ended June 30, 2025, have been reviewed by the Company’s auditor, Shinewing (HK) CPA Limited, in accordance with Hong Kong Standard on Review Engagements 2410[77](index=77&type=chunk) [Sufficiency of Public Float](index=29&type=section&id=Sufficiency%20of%20Public%20Float) Based on public information and directors' knowledge, the Company maintained a sufficient public float in accordance with the Listing Rules for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Company maintained a sufficient public float in accordance with the requirements of the Listing Rules[78](index=78&type=chunk) [Publication of Results Announcement and Interim Report](index=30&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEXnews website and the Company's website, and the Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites in due course - This interim results announcement is published on the website of HKEXnews (www.hkexnews.hk) and the Company’s website (www.far800.com) respectively[79](index=79&type=chunk) - The interim report of the Company for the six months ended June 30, 2025, will be despatched to its shareholders and published on the aforesaid websites in due course[79](index=79&type=chunk) [By Order of the Board](index=30&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Wang Quan, Chairman and Executive Director of Far800 International Holdings Group Limited, and lists the executive, non-executive, and independent non-executive directors as of the announcement date - This announcement is issued by Mr. Wang Quan, Chairman and Executive Director of Far800 International Holdings Group Limited[80](index=80&type=chunk) - As of the date of this announcement, the executive Directors are Mr. Wang Quan, Mr. Yang Zhilong, Mr. Zhang Guangyang and Mr. Zhu Jiong; the non-executive Directors are Mr. Wei Ran and Mr. Yao Shenjie; and the independent non-executive Directors are Mr. Ye Xingyue, Mr. Ren Tiangan and Ms. Wang Jiaofei[80](index=80&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Logan Group Company Limited 龍光集團有限公司 （於開曼群島註冊成立之有限公司） （股份代號：3380及債券股份代號：40754、40527、40508、40411） 截至二零二五年六月三十日止六個月之 未經審核中期業績公告 中期業績摘要 – 1 – • 合約銷售額為人民幣39.8億元。 • 收入為人民幣34.0億元。 • 截至二零二五年六月三十日止六個月之淨虧損為人民幣19.6億元。持續虧損主要由 於(i)房地產行業持續低迷，毛利率依然處於低水平；及(ii)就存貨計提減值撥備。 中期業績 龍光集團有限公司（「本公司」或「龍光集團」）董事會（「董事會」）謹此公佈本公司及其附屬 公司（「本集團」）截至二零二五年六月三十日止六個月期間（「期內」）的未經審核中期業績 連同二零二四年中期比較數字。本中期業績亦已經本公司審核委員會審閱。 簡明綜合損益表 截至二零二五年六月三十日止六個月 ...

[Company Information and Announcement Overview](index=1&type=section&id=Company%20Information%20and%20Announcement%20Overview) This section provides an overview of the company's basic information and the announcement details for the unaudited interim results [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) Qian Xun Technology Limited (Stock Code: 1640), incorporated in the Cayman Islands, announces its unaudited consolidated interim results for the six months ended June 30, 2025 - Company name: Qian Xun Technology Limited, Stock Code: **1640**[2](index=2&type=chunk) - The company was incorporated in the Cayman Islands and listed on the Main Board of The Stock Exchange of Hong Kong Limited[2](index=2&type=chunk)[7](index=7&type=chunk) - This announcement pertains to the unaudited consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Announcement Disclaimer](index=1&type=section&id=Announcement%20Disclaimer) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content of this announcement and assume no liability for any loss - HKEX and the Stock Exchange are not responsible for the content of this announcement, do not guarantee its accuracy or completeness, and assume no liability for any loss[1](index=1&type=chunk) [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the company's condensed consolidated interim financial statements, including the income statement and statement of financial position [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue significantly increased to RMB 647,384 thousand, with profit and total comprehensive income reaching RMB 51,468 thousand, and basic earnings per share of 9.19 RMB cents Key Data from Statement of Profit or Loss for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | 647,384 | 67,144 | 864.2% | | Cost of revenue | (619,750) | (62,190) | 896.5% | | Gross profit | 27,634 | 4,954 | 457.8% | | Other income, gains and losses | 46,328 | 35 | Significant increase | | Selling and marketing expenses | (4,482) | (984) | 355.5% | | Administrative expenses | (11,512) | (5,486) | 109.8% | | Finance costs | (4,637) | (2,732) | 69.7% | | Profit before tax | 52,808 | 9,527 | 454.3% | | Income tax expense | (1,340) | (4,161) | -67.8% | | Profit and total comprehensive income for the period | 51,468 | 5,366 | 859.1% | | Basic earnings per share attributable to owners of the Company (RMB cents) | 9.19 | 1.31 | 601.5% | | Diluted earnings per share attributable to owners of the Company (RMB cents) | 8.81 | 1.31 | 572.5% | [Condensed Consolidated Interim Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to RMB 745,054 thousand, total equity was RMB 241,523 thousand, and current liabilities significantly rose due to the issuance of convertible bonds Key Data from Statement of Financial Position as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Non-current assets | 112,124 | 111,494 | 0.6% | | Current assets | 632,930 | 347,692 | 82.0% | | Total assets | 745,054 | 459,186 | 62.2% | | **EQUITY** | | | | | Equity attributable to owners of the Company | 241,549 | 153,822 | 57.0% | | Total equity | 241,523 | 153,797 | 57.1% | | **LIABILITIES** | | | | | Current liabilities | 474,531 | 303,418 | 56.4% | | Non-current liabilities | 29,000 | 1,971 | 1371.3% | | Total liabilities | 503,531 | 305,389 | 64.9% | | Total equity and liabilities | 745,054 | 459,186 | 62.2% | - New convertible bonds of **RMB 201,408 thousand** in current liabilities were the primary reason for the increase in total liabilities[6](index=6&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the accounting policies, segment information, revenue breakdown, and other financial items supporting the interim financial statements [General Information and Basis of Preparation](index=5&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company is an investment holding company, with subsidiaries primarily engaged in advertising services and e-commerce for second-hand electronic products. The interim financial statements are presented in RMB, prepared in accordance with IAS 34 and HKEX Listing Rules, and are unaudited - The Company is an investment holding company, and its subsidiaries are principally engaged in providing advertising services, e-commerce business for second-hand electronic products, and SaaS services[8](index=8&type=chunk)[12](index=12&type=chunk) - The condensed consolidated interim financial statements are presented in RMB and prepared in accordance with International Accounting Standard 34 and Appendix D2 of the Listing Rules of the Stock Exchange[8](index=8&type=chunk)[10](index=10&type=chunk) - These condensed consolidated interim financial statements are unaudited[9](index=9&type=chunk) [Application of Accounting Policies](index=5&type=section&id=Application%20of%20Accounting%20Policies) The amendment to IAS 21 "Lack of Exchangeability" was first applied during this interim period, but it had no significant impact on the Group's financial position or performance - The amendment to International Accounting Standard 21 "Lack of Exchangeability" was first applied during this interim period[11](index=11&type=chunk) - The application of the revised IFRS accounting standards had no significant impact on the Group's financial position and performance[11](index=11&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The Group has two reportable operating segments: advertising and e-commerce. The e-commerce segment contributed the vast majority of revenue and results in the first half of 2025, while advertising segment revenue decreased [Segment Revenue and Results](index=6&type=section&id=Segment%20Revenue%20and%20Results) In the first half of 2025, e-commerce segment revenue reached RMB 625,670 thousand with a segment result of RMB 10,862 thousand, becoming the primary source of revenue and profit; advertising segment revenue decreased year-on-year to RMB 21,714 thousand Revenue and Results by Reportable Segment | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Results (RMB thousands) | 2024 Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Advertising | 21,714 | 67,144 | 4,430 | 11,785 | | E-commerce | 625,670 | – | 10,862 | – | | Total | 647,384 | 67,144 | 15,292 | 11,785 | - In the corresponding period of 2024, all of the Group's businesses were considered to primarily provide advertising services, with only one operating segment[14](index=14&type=chunk) [Geographical Information](index=7&type=section&id=Geographical%20Information) In the first half of 2025, revenue from Mainland China was RMB 390,935 thousand, and revenue from other regions/countries was RMB 256,449 thousand, indicating international business expansion. Over 90% of non-current assets are located in China Revenue from External Customers (by Geographical Location) | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 390,935 | 67,144 | | Other regions/countries | 256,449 | – | | Total | 647,384 | 67,144 | - As of June 30, 2025, over **90%** of non-current assets were located in the People's Republic of China[16](index=16&type=chunk) [Revenue Breakdown](index=7&type=section&id=Revenue%20Breakdown) Total revenue for the first half of 2025 was RMB 647,384 thousand, with e-commerce business contributing RMB 625,670 thousand and advertising services contributing RMB 21,714 thousand. Revenue recognition primarily occurred at a point in time [Type of Goods and Services](index=7&type=section&id=Type%20of%20Goods%20and%20Services) E-commerce business contributed the vast majority of revenue (RMB 625,670 thousand) in the first half of 2025, while advertising services revenue decreased from RMB 67,144 thousand in the prior year period to RMB 21,714 thousand Revenue by Type of Goods and Services | Service Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Advertising services | 21,714 | 67,144 | | E-commerce business | 625,670 | – | | Total | 647,384 | 67,144 | [Timing of Revenue Recognition](index=7&type=section&id=Timing%20of%20Revenue%20Recognition) In the first half of 2025, most revenue (RMB 625,170 thousand) was recognized at a point in time, while revenue recognized over a period of time was RMB 22,214 thousand Timing of Revenue Recognition | Recognition Timing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Over a period of time | 22,214 | 67,144 | | At a point in time | 625,170 | – | | Total | 647,384 | 67,144 | [Other Income, Gains and Losses](index=8&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) Other income, gains and losses significantly increased to RMB 46,328 thousand in the first half of 2025, primarily due to a one-off gain of RMB 45,344 thousand from the derecognition of a subsidiary Details of Other Income, Gains and Losses | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income from bank deposits | 515 | 5 | | Government grants | – | 27 | | Gain on derecognition of a subsidiary | 45,344 | – | | Others | 469 | 3 | | Total | 46,328 | 35 | - A gain of **RMB 45,344 thousand** was recognized from the derecognition of Lingyu (Beijing) Culture Media Co., Ltd[20](index=20&type=chunk) [Finance Costs](index=8&type=section&id=Finance%20Costs) Finance costs increased to RMB 4,637 thousand in the first half of 2025, primarily due to interest expenses, up from RMB 2,732 thousand in the prior year period Details of Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expense | 4,637 | 2,732 | [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) Income tax expense for the first half of 2025 was RMB 1,340 thousand, a significant decrease from RMB 4,161 thousand in the prior year period, mainly due to deferred tax impact. The company applies different tax rates in Mainland China, Cayman Islands, and Hong Kong Details of Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax expense/(credit) – current period | 1,492 | 88 | | Current tax expense/(credit) – deferred tax | (152) | 4,073 | | Income tax expense | 1,340 | 4,161 | - Chinese subsidiaries are subject to Enterprise Income Tax at **5%** (small-profit enterprises) or **25%**, with Xizang Wanmei Advertising Co., Ltd. enjoying a preferential tax rate of **15%** until December 31, 2030[21](index=21&type=chunk) - No income tax is levied in the Cayman Islands, and Hong Kong applies a two-tiered profits tax rate (first **HKD 2 million** at **8.25%**, remainder at **16.5%**)[22](index=22&type=chunk) [Components of Profit for the Period](index=10&type=section&id=Components%20of%20Profit%20for%20the%20Period) In the first half of 2025, total depreciation and amortization amounted to RMB 631 thousand, and total staff costs were RMB 10,680 thousand, both significantly increased from the prior year, reflecting business expansion and associated cost growth Components of Profit for the Period | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of property and equipment | 23 | 12 | | Amortisation of intangible assets | 608 | 3 | | Total depreciation and amortisation | 631 | 15 | | Salaries and allowances | 9,884 | 1,980 | | Retirement benefit scheme contributions | 796 | – | | Total staff costs | 10,680 | 1,980 | | Auditor's remuneration | 100 | 80 | | Expenses relating to short-term leases | 450 | 646 | [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) In the first half of 2025, basic earnings per share were 9.19 RMB cents and diluted earnings per share were 8.81 RMB cents, both showing significant growth from the prior year. The dilutive effect primarily stemmed from convertible bonds Earnings Per Share Calculation Data | Indicator | 2025 (RMB thousands/thousands of shares) | 2024 (RMB thousands/thousands of shares) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic earnings per share | 51,469 | 5,366 | | Effect of potential dilutive ordinary shares: interest on convertible bonds | 6,585 | – | | Profit for the purpose of calculating diluted earnings per share | 58,054 | 5,366 | | Weighted average number of ordinary shares for basic earnings per share | 560,000 | 410,549 | | Effect of potential dilutive ordinary shares: convertible bonds | 98,704 | – | | Weighted average number of ordinary shares for diluted earnings per share | 658,704 | 410,549 | Earnings Per Share | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic | 9.19 | 1.31 | | Diluted | 8.81 | 1.31 | [Dividends](index=11&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Company's directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[27](index=27&type=chunk) [Trade and Other Receivables, Prepayments and Other Receivables](index=11&type=section&id=Trade%20and%20Other%20Receivables%2C%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, trade and other receivables, prepayments, and other receivables totaled RMB 450,621 thousand, a significant increase from December 31, 2024, primarily due to e-commerce business expansion. The aging structure of trade receivables shows a higher proportion of amounts over 360 days Trade and Other Receivables, Prepayments and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 156,329 | 81,043 | | Prepayments and other receivables (net of loss allowance) | 294,292 | 223,172 | | Total | 450,621 | 304,215 | Aging Analysis of Trade Receivables (net of credit loss allowance) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 55,279 | 889 | | 31 to 90 days | 28,065 | 6,972 | | 91 to 180 days | 6,596 | 2,412 | | 181 to 360 days | 4,086 | 36,432 | | Over 360 days | 62,303 | 34,338 | | Total | 156,329 | 81,043 | [Trade and Other Payables](index=13&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables totaled RMB 182,096 thousand, an increase from December 31, 2024. A significant portion of trade payables were over 90 days old Details of Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 95,484 | 97,873 | | Accrued staff costs | 6,114 | 7,228 | | Other tax payables | 1,663 | 177 | | Listing expenses payable | 756 | 756 | | Interest payable | 715 | 665 | | Accrued expenses and other payables | 77,364 | 30,112 | | Total | 182,096 | 136,811 | Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 5,109 | 8,780 | | 31 to 90 days | 9,439 | 21,841 | | Over 90 days | 80,936 | 67,252 | | Total | 95,484 | 97,873 | [Bank and Other Borrowings](index=14&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, total bank and other borrowings amounted to RMB 33,371 thousand, a significant decrease from RMB 81,971 thousand as of December 31, 2024. Secured borrowings are guaranteed by independent third parties at an effective annual interest rate of 3.35% Bank and Other Borrowings | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured | 3,000 | 72,871 | | Unsecured | 30,371 | 9,100 | | Total | 33,371 | 81,971 | - Secured bank borrowings are guaranteed by two independent third parties, with an effective annual interest rate of **3.35%** (December 31, 2024: **2.40% to 6.00%**)[32](index=32&type=chunk) [Convertible Bonds](index=14&type=section&id=Convertible%20Bonds) On February 28, 2025, the company issued convertible bonds with a total principal amount of HKD 256,630,000, bearing a fixed annual interest rate of 5% and maturing on February 27, 2026. The bonds are split into a liability component (RMB 201,408 thousand) and an equity component (RMB 36,258 thousand) Movement of Convertible Bonds | Item | Liability Component (RMB thousands) | Equity Component (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | At January 1, 2025 | – | – | – | | Convertible bonds issued | 197,465 | 36,258 | 233,723 | | Interest expense | 3,943 | – | 3,943 | | At June 30, 2025 | 201,408 | 36,258 | 237,666 | - Convertible bonds with a total principal amount of **HKD 256,630,000** were issued on February 28, 2025, bearing a fixed annual interest rate of **5%** and maturing on February 27, 2026[34](index=34&type=chunk) - The conversion price is **HKD 2.60** per share, convertible between December 25, 2025, and February 27, 2026[34](index=34&type=chunk) [Share Capital and Reserves](index=15&type=section&id=Share%20Capital%20and%20Reserves) As of June 30, 2025, the authorized share capital was 2,000,000,000 shares, and the issued and fully paid share capital was HKD 5,600 thousand. In 2024, shares were placed and issued for the acquisition of Qian Xun International Limited Movement in Share Capital | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Authorized share capital (par value HKD 0.01 per share) | 20,000 | 20,000 | | Issued and fully paid: at beginning of period | 5,600 | 4,000 | | Placing of shares | – | 800 | | Issue of shares | – | 800 | | At end of period | 5,600 | 5,600 | - A placing of **80,000,000** new shares was completed on June 7, 2024, raising net proceeds of approximately **HKD 40,000,000**[36](index=36&type=chunk) - **80,000,000** new shares were issued on August 13, 2024, as partial settlement for the acquisition of Qian Xun International Limited, with a total consideration of **RMB 85,171,000**[36](index=36&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the Group's market overview, business transformation, financial performance, and significant financial management matters [Market Overview and Business Transformation](index=16&type=section&id=Market%20Overview%20and%20Business%20Transformation) In the first half of 2025, the Group's business transformation showed initial success, strategically scaling back traditional advertising and vigorously developing the second-hand e-commerce business, which has become the company's largest revenue and profit source. The company actively integrates AI technology into its second-hand 3C e-commerce business, launching "Fenhao Cloud AI Assistant" to enhance transaction efficiency - The Group's business transformation involved a strategic reduction in traditional advertising business and rapid growth in the second-hand e-commerce business[37](index=37&type=chunk) - The second-hand e-commerce business has contributed approximately **RMB 625.7 million** in revenue, becoming the Company's largest source of revenue and profit[38](index=38&type=chunk) - The company efficiently recycles second-hand 3C products through diversified channels (online platforms, self-service machines, urban operation centers)[37](index=37&type=chunk) - Launched "Fenhao Cloud AI Assistant," the industry's first second-hand 3C intelligent decision-making engine based on DeepSeek R&D, providing intelligent pricing, price adjustment, risk early warning, and automated procurement services[38](index=38&type=chunk) [Financial Performance Analysis](index=17&type=section&id=Financial%20Performance%20Analysis) The Group's financial performance in the first half of 2025 was strong, with revenue significantly increasing by 864.8% year-on-year to RMB 647.4 million, primarily due to the acquisition of the e-commerce business. Profit and total comprehensive income for the period rose to RMB 51.5 million, but gross margin decreased, and selling and marketing expenses, administrative expenses, and finance costs all increased due to business expansion [Revenue](index=17&type=section&id=Revenue) Revenue for the reporting period was approximately RMB 647.4 million, a significant year-on-year increase of approximately 864.8%, primarily attributable to the second-hand e-commerce business acquired in August 2024, which contributed approximately RMB 625.7 million in revenue - Revenue for the reporting period was approximately **RMB 647.4 million**, a year-on-year increase of approximately **864.8%** (prior period: **RMB 67.1 million**)[40](index=40&type=chunk) - The increase primarily stemmed from the second-hand e-commerce business acquired in August 2024, contributing approximately **RMB 625.7 million** in revenue[40](index=40&type=chunk) [Gross Profit and Gross Margin](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit for the reporting period was approximately RMB 27.6 million, with a gross margin of 4.3%, a decrease from the prior period's gross profit of RMB 5.0 million and gross margin of 7.4%, despite an increase in absolute gross profit - Gross profit for the reporting period was approximately **RMB 27.6 million** (prior period: **RMB 5.0 million**)[41](index=41&type=chunk) - Gross margin was **4.3%** (prior period: **7.4%**), indicating a decrease in gross margin[41](index=41&type=chunk) [Other Income, Gains and Losses](index=17&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) Other income, gains and losses for the reporting period were approximately RMB 46.3 million, an increase of approximately RMB 46.2 million from the prior period, primarily due to a one-off gain of RMB 45.3 million from derecognition - Other income, gains and losses were approximately **RMB 46.3 million** (prior period: **RMB 0.035 million**), an increase of approximately **RMB 46.2 million** from the prior period[42](index=42&type=chunk) - Primarily due to a one-off gain of **RMB 45.3 million** from derecognition[42](index=42&type=chunk) [Selling and Marketing Expenses](index=17&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses for the reporting period were approximately RMB 4.5 million, a year-on-year increase of 350%, primarily due to the acquisition of the e-commerce business - Selling and marketing expenses were approximately **RMB 4.5 million** (prior period: **RMB 1.0 million**), a year-on-year increase of **350%**[43](index=43&type=chunk) - Primarily due to the e-commerce business acquired in August 2024[43](index=43&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses for the reporting period were approximately RMB 11.5 million, a year-on-year increase of 109.1%, primarily due to the acquisition of the e-commerce business - Administrative expenses were approximately **RMB 11.5 million** (prior period: **RMB 5.5 million**), a year-on-year increase of **109.1%**[44](index=44&type=chunk) - Primarily due to the e-commerce business acquired in August 2024[44](index=44&type=chunk) [Finance Costs](index=17&type=section&id=Finance%20Costs) Finance costs for the reporting period were approximately RMB 4.6 million, a year-on-year increase of 70.4%, primarily due to accrued interest expense from convertible bonds issued in February 2025 - Finance costs were approximately **RMB 4.6 million** (prior period: **RMB 2.7 million**), a year-on-year increase of **70.4%**[45](index=45&type=chunk) - Primarily due to accrued interest expense from convertible bonds issued in February 2025[45](index=45&type=chunk) [Financial Assets (Impairment Loss) / Reversal](index=18&type=section&id=Financial%20Assets%20%28Impairment%20Loss%29%20%2F%20Reversal) Financial asset impairment loss for the reporting period was approximately RMB 0.5 million, compared to a reversal of impairment loss of approximately RMB 13.3 million in the prior period, indicating a reversal in impairment status - Financial asset impairment loss was approximately **RMB 0.5 million** (prior period: reversal of impairment loss of approximately **RMB 13.3 million**)[46](index=46&type=chunk) [Income Tax Expense](index=18&type=section&id=Income%20Tax%20Expense) Income tax expense for the reporting period was approximately RMB 1.3 million, a significant decrease from RMB 4.2 million in the prior period - Income tax expense was approximately **RMB 1.3 million** (prior period: **RMB 4.2 million**)[47](index=47&type=chunk) [Profit and Total Comprehensive Income for the Period](index=18&type=section&id=Profit%20and%20Total%20Comprehensive%20Income%20for%20the%20Period) Profit and total comprehensive income for the reporting period was approximately RMB 51.5 million, a significant increase from RMB 5.4 million in the prior period, primarily influenced by revenue growth and the gain from derecognition - Profit and total comprehensive income for the period was approximately **RMB 51.5 million** (prior period: **RMB 5.4 million**)[48](index=48&type=chunk) [Financial Position Analysis](index=18&type=section&id=Financial%20Position%20Analysis) As of June 30, 2025, trade and other receivables, prepayments, and other payables all significantly increased due to the acquisition of the e-commerce business [Trade and Other Receivables, Prepayments and Other Receivables](index=18&type=section&id=Trade%20and%20Other%20Receivables%2C%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, trade and other receivables, prepayments, and other receivables amounted to approximately RMB 450.6 million, an increase of 48.1% from December 31, 2024, primarily due to the acquisition of the e-commerce business - Trade and other receivables, prepayments, and other receivables were approximately **RMB 450.6 million** (December 31, 2024: **RMB 304.2 million**), an increase of **48.1%**[49](index=49&type=chunk) - The increase was primarily due to the e-commerce business acquired in August 2024[49](index=49&type=chunk) [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables amounted to approximately RMB 182.1 million, an increase of 33.1% from December 31, 2024, primarily due to the acquisition of the e-commerce business - Trade and other payables were approximately **RMB 182.1 million** (December 31, 2024: **RMB 136.8 million**), an increase of **33.1%**[50](index=50&type=chunk) - The increase was primarily due to the e-commerce business acquired in August 2024[50](index=50&type=chunk) [Significant Matters and Financial Management](index=19&type=section&id=Significant%20Matters%20and%20Financial%20Management) The Group completed the acquisition of an e-commerce business and successfully placed convertible bonds to support business expansion and debt repayment. Liquidity is sufficient, but the gearing ratio significantly increased due to the convertible bond issuance. The company monitors foreign currency and interest rate risks without hedging and substantially increased employee numbers and related costs [Performance Targets for Acquisition of E-commerce Business Target Group](index=19&type=section&id=Performance%20Targets%20for%20Acquisition%20of%20E-commerce%20Business%20Target%20Group) The target group achieved its 2024 performance target (audited profit before tax exceeding HKD 5,000,000), and the company has paid HKD 14,600,000 consideration to the vendor - The target group's audited profit before tax for 2024 exceeded **HKD 5,000,000**, achieving the 2024 performance target[51](index=51&type=chunk) - The Company has paid **HKD 14,600,000** consideration to the vendor[51](index=51&type=chunk) - The aggregate audited profit before tax for the guarantee period (three years ending December 31, 2026) is not less than **HKD 70,000,000**[51](index=51&type=chunk) [Placing of Convertible Bonds](index=19&type=section&id=Placing%20of%20Convertible%20Bonds) On February 28, 2025, the company successfully placed convertible bonds with a total principal amount of HKD 256,630,000, which, upon full conversion, will result in the allotment and issuance of 98,703,846 conversion shares - On February 28, 2025, convertible bonds with a total principal amount of **HKD 256,630,000** were successfully issued and placed to no less than six placees[52](index=52&type=chunk) - Upon full conversion, **98,703,846** conversion shares will be allotted and issued at a conversion price of **HKD 2.60** per share[52](index=52&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, cash and cash equivalents were approximately RMB 110.6 million, and total assets were approximately RMB 745.1 million. The gearing ratio increased from 53.3% as of December 31, 2024, to 97.2% as of June 30, 2025, primarily due to the increase in convertible bonds - As of June 30, 2025, cash and cash equivalents were approximately **RMB 110.6 million** (December 31, 2024: **RMB 34.0 million**)[54](index=54&type=chunk) - Total assets were approximately **RMB 745.1 million** (December 31, 2024: **RMB 459.2 million**)[54](index=54&type=chunk) - The gearing ratio increased from **53.3%** as of December 31, 2024, to **97.2%** as of June 30, 2025, primarily due to the increase in convertible bonds[54](index=54&type=chunk) [Pledged Assets](index=20&type=section&id=Pledged%20Assets) During the reporting period, the company did not pledge any fixed assets as security for borrowings - During the reporting period, the Company did not pledge any fixed assets as security for borrowings[55](index=55&type=chunk) [Capital Expenditure](index=20&type=section&id=Capital%20Expenditure) During the reporting period, the Group did not incur any other significant capital expenditure - During the reporting period, the Group did not incur any other significant capital expenditure (prior period: **RMB nil**)[56](index=56&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) Contingent liabilities during the review period were approximately RMB 16.1 million, a decrease from RMB 28.8 million in the prior period, mainly due to achieving the 2024 performance target and paying HKD 14.6 million in consideration - Contingent liabilities during the review period were approximately **RMB 16.1 million** (prior period: **RMB 28.8 million**)[57](index=57&type=chunk) - The decrease was primarily due to achieving the 2024 performance target and paying **HKD 14.6 million** consideration to the vendor[57](index=57&type=chunk) [Foreign Currency Risk](index=20&type=section&id=Foreign%20Currency%20Risk) The Group primarily conducts core transactions in RMB in China, with limited impact from foreign currency exchange rate fluctuations on cash flows or liquidity, and currently does not engage in foreign exchange hedging activities - The Group's business activities are primarily in China, with core transactions conducted in RMB, resulting in limited impact from foreign currency exchange rate fluctuations[58](index=58&type=chunk) - The Group currently does not engage in hedging activities to manage foreign exchange rate risk[58](index=58&type=chunk) [Interest Rate Risk](index=21&type=section&id=Interest%20Rate%20Risk) The Group faces cash flow interest rate risk but has no interest rate hedging policy. Fair value interest rate risk is mainly related to fixed-rate bank borrowings and convertible bonds, with the company's policy to maintain short-term borrowings to mitigate risk - The Group faces cash flow interest rate risk but has no interest rate hedging policy[59](index=59&type=chunk) - Fair value interest rate risk is primarily related to fixed-rate bank and other borrowings and convertible bonds[59](index=59&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 112 full-time staff, an increase of 83 year-on-year. Staff costs for the reporting period were approximately RMB 10.7 million, a year-on-year increase of 435.0%, reflecting business expansion and investment in talent. The company offers a competitive remuneration package and training and promotion opportunities - As of June 30, 2025, the Group employed **112** full-time staff (June 30, 2024: **29** staff), an increase of **83** staff[61](index=61&type=chunk) - Staff costs for the reporting period were approximately **RMB 10.7 million** (prior period: **RMB 2.0 million**), a year-on-year increase of approximately **435.0%**[61](index=61&type=chunk) - The company provides a competitive remuneration package (salaries, allowances, bonuses, retirement benefits, share options) and training and promotion opportunities[60](index=60&type=chunk) [Use of Proceeds from Placing of Convertible Bonds](index=22&type=section&id=Use%20of%20Proceeds%20from%20Placing%20of%20Convertible%20Bonds) The net proceeds of approximately HKD 256,290,000 from the placing of convertible bonds have been used as planned for overseas expansion of the second-hand e-commerce business, development of existing China business, repayment of bank borrowings, and general working capital Use of Proceeds from Placing of Convertible Bonds | Purpose | Amount (HKD) | Percentage | | :--- | :--- | :--- | | Overseas expansion of second-hand e-commerce business | 128,145,000 | 50% | | Development of existing China second-hand e-commerce business | 51,258,000 | 20% | | Repayment of bank borrowings | 51,258,000 | 20% | | General working capital | 25,629,000 | 10% | | Total | 256,290,000 | 100% | - As of the date of this results announcement, all proceeds have been utilized for their intended purposes[63](index=63&type=chunk) [Events After the Reporting Period](index=22&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this results announcement, the Group has not undertaken any significant events after June 30, 2025 - No significant events occurred after June 30, 2025, up to the date of this results announcement[64](index=64&type=chunk) [Outlook and Corporate Governance](index=23&type=section&id=Outlook%20and%20Corporate%20Governance) This section outlines the Group's strategic outlook, including business transformation and AI integration, alongside details on corporate governance, securities transactions, and interim results review [Industry and Group Outlook](index=23&type=section&id=Industry%20and%20Group%20Outlook) Management is cautiously optimistic about the 2025 financial performance, anticipating AI technology to provide new business momentum. The Group will implement a "strategic shift," using second-hand e-commerce to offset advertising business weakness in the short term, optimizing supply chain and AI technology for efficiency in the medium term, and building a "technology + supply chain + finance" triangular barrier to become a benchmark enterprise in the circular economy in the long term - Management is cautiously optimistic about the 2025 financial performance, expecting AI technology to provide new business momentum[65](index=65&type=chunk) - Short-term strategy: High growth in second-hand e-commerce business to offset weakness in the advertising business[65](index=65&type=chunk) - Mid-term strategy: Achieve cost restructuring and efficiency leaps through supply chain optimization and AI technology utilization[65](index=65&type=chunk) - Long-term strategy: Build a "technology + supply chain + finance" triangular barrier to become a benchmark enterprise in the circular economy[65](index=65&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor did they hold any treasury shares - 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[66](index=66&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[67](index=67&type=chunk) [Corporate Governance Code and Model Code for Securities Transactions by Directors](index=23&type=section&id=Corporate%20Governance%20Code%20and%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has complied with the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules for the six months ended June 30, 2025, and directors confirm compliance with the Model Code for Securities Transactions by Directors set out in Appendix C3 of the Listing Rules - The Company has complied with the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules for the six months ended June 30, 2025[68](index=68&type=chunk) - The directors confirm compliance with the Model Code for Securities Transactions by Directors set out in Appendix C3 of the Listing Rules[69](index=69&type=chunk) [Review of Unaudited Interim Results](index=24&type=section&id=Review%20of%20Unaudited%20Interim%20Results) The Audit Committee has reviewed the company's unaudited interim results for the six months ended June 30, 2025, confirming compliance with all applicable accounting principles, standards, and requirements, and that adequate disclosures have been made - The Audit Committee has reviewed the Company's unaudited interim results for the six months ended June 30, 2025[71](index=71&type=chunk) - The Audit Committee confirmed compliance with all applicable accounting principles, standards, and requirements, and that adequate disclosures have been made[71](index=71&type=chunk) - The Audit Committee members include three independent non-executive directors: Ms. Lam Oi Yan (Chairperson), Mr. Wong Sing Sze, and Mr. Niu Zhongjie[71](index=71&type=chunk) [Publication of Results Announcement and Interim Report](index=24&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the HKEX website and the company's website, and the interim report containing all information required by the Listing Rules will be available in due course - This results announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.fprice.cn)[72](index=72&type=chunk) - The interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be available on the aforementioned websites in due course[72](index=72&type=chunk)