[Company Information](index=1&type=section&id=Company%20Information) [Company Overview](index=1&type=section&id=Company%20Overview) Winox Holdings Limited (Stock Code: 6838) released its interim results report for the six months ended June 30, 2025 - Winox Holdings Limited (Stock Code: 6838) released its 2025 interim results[2](index=2&type=chunk) [Financial Summary](index=1&type=section&id=Financial%20Summary) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The Group's revenue slightly increased by 0.6% in the first half of 2025, but gross profit significantly decreased by 16.1%, leading to a turn from profit to loss for the period, with basic loss per share of 2.3 HK cents, and no interim dividend recommended 2025 First Half Key Financial Data | Indicator | 2025 First Half (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Revenue | 324,228 | +0.6% | | Gross Profit | 57,508 | -16.1% | | Loss for the period | (13,821) | Turned from profit to loss | | Basic loss per share | 2.3 HK Cents | Turned from profit to loss | | Interim dividend | Not recommended for distribution | - | [Management Discussion and Analysis](index=1&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=1&type=section&id=Business%20Review) The Group focuses on the development and production of high-grade stainless steel products, with main business segments including watch straps, mobile phone casings and components, smart wearable device casings and components, and fashion jewelry. Facing global economic challenges and slowing demand for luxury goods, the Group implemented manpower streamlining and cost-saving measures, and despite a decrease in revenue for some products, the smart wearable device business performed strongly, and the Group's financial position remained robust - The Group's main business segments are watch straps, mobile phone casings and components, smart wearable device casings and components, and fashion jewelry[4](index=4&type=chunk) - Global economy faces challenges including escalating US-China tariff wars, Russia-Ukraine conflict, Middle East wars, and uncertain effectiveness of China's consumption stimulus measures, leading to a slowdown in global demand for luxury consumer goods[6](index=6&type=chunk) - Revenue from smart wearable device casings and components increased by **54.7% year-on-year**, while revenue from watch straps, fashion jewelry, and mobile phone casings and components decreased[6](index=6&type=chunk) - The Group implemented a manpower streamlining plan and other cost-saving policies, paying severance compensation of approximately **HK$10,336,000**[6](index=6&type=chunk) 2025 First Half Financial Position | Indicator | Amount (HK$ Thousand) | | :--- | :--- | | Net current assets | 288,376 | | Cash and bank balances | 200,205 | [Financial Review](index=2&type=section&id=Financial%20Review) The Group's revenue slightly increased by 0.6% to HK$324 million in the first half of 2025, but gross profit margin declined due to intensified market competition. The period saw a turn from profit to loss, mainly affected by increased severance payments and R&D expenses, but the Group maintained ample liquidity and a stable gearing ratio [Revenue](index=2&type=section&id=Revenue) The Group's total revenue slightly increased by 0.6%, with a significant 54.7% growth in revenue from smart wearable device casings and components, while other major product revenues decreased 2025 First Half Revenue Composition and Year-on-Year Change | Product Category | 2025 First Half Revenue (HK$ Thousand) | Percentage (%) | 2024 First Half Revenue (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 324,228 | 100.0% | 322,245 | +0.6% | | Mobile phone casings and components | 139,652 | 43.1% | 152,124 | -8.2% | | Watch straps | 93,794 | 28.9% | 99,701 | -5.9% | | Smart wearable device casings and components | 81,314 | 25.1% | 52,564 | +54.7% | | Fashion jewelry | 9,468 | 2.9% | 17,856 | -47.0% | [Gross Profit](index=3&type=section&id=Gross%20Profit) The Group's gross profit decreased by 16.1% year-on-year, with gross profit margin declining by 3.6 percentage points, primarily due to price reductions by domestic manufacturers amid intense market competition 2025 First Half Gross Profit and Gross Profit Margin | Indicator | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Gross Profit | 57,508 | 68,559 | -16.1% | | Gross Profit Margin | 17.7% | 21.3% | -3.6 percentage points | | Primary Reason | Price reductions by domestic manufacturers, intense market competition | | | [Loss for the Period](index=3&type=section&id=Loss%20for%20the%20Period) The Group turned from a profit in the same period last year to a loss of HK$13,821,000 for the period, with basic loss per share of 2.3 HK cents 2025 First Half Loss for the Period | Indicator | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | | :--- | :--- | :--- | | (Loss) Profit for the period | (13,821) | 9,255 | | Basic (loss) earnings per share | (2.3 HK Cents) | 1.5 HK Cents | [Cost of Sales](index=3&type=section&id=Cost%20of%20Sales) Cost of sales increased by 5.1% year-on-year, with direct material costs accounting for a higher proportion at 49.8% 2025 First Half Cost of Sales Composition | Cost Category | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | | :--- | :--- | :--- | | Direct material costs | 132,907 | 120,919 | | Direct labor costs | 95,712 | 91,638 | | Manufacturing overheads and other costs | 38,101 | 41,129 | | **Total Cost of Sales** | **266,720** | **253,686** | | Direct material costs percentage | 49.8% | 47.7% | | Direct labor costs percentage | 35.9% | 36.1% | | Manufacturing overheads and other costs percentage | 14.3% | 16.2% | [Other Income](index=3&type=section&id=Other%20Income) Other income decreased by 49.6% year-on-year, mainly due to a reduction in interest income from bank fixed deposits 2025 First Half Other Income | Indicator | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Other income | 3,945 | 7,826 | -49.6% | | Primary Reason | Reduction in interest income from bank fixed deposits | | | [Other Expenses](index=3&type=section&id=Other%20Expenses) Selling and distribution costs decreased, while administrative and other expenses increased by 9.6% due to higher severance payments, and R&D expenses significantly increased by 77.4% 2025 First Half Other Expenses Change | Expense Category | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Selling and distribution costs | 6,248 | 6,923 | -9.8% | | Administrative and other expenses | 53,643 | 48,924 | +9.6% | | Research and development expenses | 15,414 | 8,687 | +77.4% | | Primary reason for administrative and other expenses | Payment of HK$10,336,000 in severance payments | | | [Finance Costs](index=4&type=section&id=Finance%20Costs) Finance costs decreased by 27.0% year-on-year to HK$1,143,000 2025 First Half Finance Costs | Indicator | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Finance costs | 1,143 | 1,565 | -27.0% | [Tax](index=4&type=section&id=Tax) Hong Kong Profits Tax implements a two-tiered system, and China Corporate Income Tax rate is 25%, but high-tech enterprises can enjoy a 15% preferential tax rate and apply for a 200% super deduction for R&D expenses - Hong Kong Profits Tax two-tiered system: **8.25%** for the first **HK$2 million** of assessable profits, and **16.5%** for the excess[15](index=15&type=chunk) - China Group entities' tax rate is **25%**, with some high-tech enterprises enjoying a **15%** preferential tax rate until December 31, 2025[15](index=15&type=chunk) - Chinese enterprises engaged in R&D activities are entitled to claim **200%** of eligible R&D expenses as deductible expenses (super deduction)[15](index=15&type=chunk) [Inventories](index=4&type=section&id=Inventories) The Group's inventory balance increased by 16.7% to HK$74,995,000, with a slight increase in inventory turnover days 2025 First Half Inventory Situation | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | | Inventory balance | 74,995 | 64,244 | +16.7% | | Inventory turnover days | 47.2 days | 46.3 days | +0.9 days | [Trade Receivables](index=4&type=section&id=Trade%20Receivables) Trade receivables decreased to HK$113,081,000, with credit periods ranging from 30 to 90 days, a lower risk of default payment, and improved turnover days - The company grants credit periods ranging from **30 to 90 days** to customers, with major customers being internationally renowned brands, resulting in a relatively low risk of default payment[17](index=17&type=chunk) 2025 First Half Trade Receivables | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables | 113,081 | 166,055 | | Amount recovered (as of July 31) | 67,730 | - | | Trade receivables turnover days | 77.9 days | 82.7 days | [Trade Payables](index=5&type=section&id=Trade%20Payables) Trade payables decreased to HK$94,320,000, with credit periods ranging from 30 to 90 days, and a slight increase in turnover days - Trade payables are mainly related to the purchase of raw materials from suppliers, with credit periods ranging from **30 to 90 days**[18](index=18&type=chunk) 2025 First Half Trade Payables | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade payables | 94,320 | 116,514 | | Trade payables turnover days | 71.5 days | 64.7 days | [Liquidity, Indebtedness and Charges on Assets](index=5&type=section&id=Liquidity%2C%20Indebtedness%20and%20Charges%20on%20Assets) The Group maintained an ideal level of liquidity, with sufficient net current assets and cash balances. Bank borrowings increased, some assets were pledged, and the gearing ratio remained stable - Bank balances and cash are primarily held in **US dollars (49.6%)**, **Renminbi (33.6%)**, and **Hong Kong dollars (16.7%)**[19](index=19&type=chunk) - Some bank borrowings are secured by assets with a total book value of **HK$76,662,000**, including the Dongguan factory land, property, and bills receivable[20](index=20&type=chunk) 2025 First Half Liquidity and Indebtedness | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net current assets | 288,376 | 297,079 | | Bank balances and cash | 200,205 | 222,249 | | Outstanding bank borrowings | 73,306 | 67,783 | | Gearing ratio | 0.06 | 0.06 | [Treasury](index=5&type=section&id=Treasury) The Group adopts a prudent treasury policy, with sales primarily settled in US dollars, Hong Kong dollars, and Renminbi. As production costs are mainly settled in Renminbi, fluctuations in the Renminbi exchange rate may impact costs, but no financial instruments were used for hedging purposes during the period - The Group's sales are primarily settled in **US dollars (40.1%)**, **Hong Kong dollars (31.2%)**, and **Renminbi (28.7%)**[21](index=21&type=chunk) - As production facilities are located in mainland China, labor costs and manufacturing overheads are mainly settled in Renminbi, and fluctuations in the Renminbi exchange rate can impact overall production costs[21](index=21&type=chunk) - During the review period, the Group did not use any financial instruments for hedging purposes, and there were no hedging instruments as of June 30, 2025[22](index=22&type=chunk) [Capital Commitments](index=6&type=section&id=Capital%20Commitments) The Group's contracted but unprovided capital expenditure amounted to HK$49,437,000, primarily for the acquisition of property, plant and equipment, and land use rights 2025 First Half Capital Commitments | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital expenditure | 49,437 | 46,935 | | Primary Use | Acquisition of property, plant and equipment, and land use rights | | [Contingent Liabilities](index=6&type=section&id=Contingent%20Liabilities) The Group had no other significant contingent liabilities apart from corporate guarantees granted to wholly-owned subsidiaries - The Group had no other significant contingent liabilities as of June 30, 2025, except for corporate guarantees[24](index=24&type=chunk) [Employees and Remuneration Policy](index=6&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's total number of employees decreased to 2,202, while staff costs increased. Remuneration policy is based on Group performance and individual performance, and provides medical and retirement benefits - Employee remuneration includes salaries and discretionary bonuses, determined based on Group performance and individual performance, and provides medical and retirement benefit plans[25](index=25&type=chunk) 2025 First Half Employees and Remuneration | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total number of employees | 2,202 | 2,408 | | Staff costs | HK$140,126,000 | HK$124,708,000 | [Outlook](index=6&type=section&id=Outlook) Facing continued global economic challenges in the second half of 2025, the Group will continue to take measures to address them, and will prioritize revenue enhancement, long-term profitability, improved operational efficiency, and optimal resource utilization to achieve sustainable growth - In the second half of 2025, the global economy continues to face challenges such as the US-China tariff war, trade sanctions, conflicts, and geopolitical tensions[26](index=26&type=chunk) - The Group will focus on enhancing revenue, ensuring long-term profitability, improving operational efficiency, and optimizing resource utilization to achieve sustainable growth[26](index=26&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, showing a turn from profit to loss for the period, but with a positive impact from exchange differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2025) | | For the six months | | | :--- | :--- | :--- | | | 2025 | 2024 | | | June 30 | June 30 | | Note | HK$ Thousand | HK$ Thousand | | | (Unaudited) | (Unaudited) | | Revenue | 3 | 324,228 | 322,245 | | Cost of sales | | (266,720) | (253,686) | | Gross Profit | | 57,508 | 68,559 | | Other income | | 3,945 | 7,826 | | Other gains and losses | | 517 | 2,251 | | Impairment loss reversal on financial assets under expected credit loss model | | 1,230 | 46 | | Selling and distribution costs | | (6,248) | (6,923) | | Administrative and other expenses | | (53,643) | (48,924) | | Research and development expenses | | (15,414) | (8,687) | | Finance costs | | (1,143) | (1,565) | | (Loss) Profit before tax | 4 | (13,248) | 12,583 | | Tax | 5 | (573) | (3,328) | | (Loss) Profit for the period | | (13,821) | 9,255 | | Other comprehensive income (expense) for the period | | | | | Items that may be reclassified subsequently to profit or loss | | | | | - Exchange differences on translation of foreign operations | | 28,806 | (23,378) | | Total comprehensive income (expense) for the period | | 14,985 | (14,123) | | (Loss) Earnings per share - Basic | 7 | (2.3 HK Cents) | 1.5 HK Cents | [Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's condensed consolidated statement of financial position as of June 30, 2025, showing an increase in total assets and shareholders' equity, and robust net current assets Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | | | 2025 | 2024 | | :--- | :--- | :--- | :--- | | | | June 30 | December 31 | | | Note | HK$ Thousand | HK$ Thousand | | | | (Unaudited) | (Audited) | | Non-current assets | | | | | Property, plant and equipment | | 589,435 | 553,631 | | Right-of-use assets | | 60,474 | 56,236 | | Deposits for non-current assets paid | | 23,742 | 29,388 | | Deposits and prepayments for a life insurance policy | | - | 8,850 | | | | 673,651 | 648,105 | | Current assets | | | | | Inventories | | 74,995 | 64,244 | | Trade and other receivables | 8 | 215,263 | 231,926 | | Recoverable tax | | 3,139 | 3,221 | | Short-term bank deposits | | 70,650 | 97,637 | | Bank balances and cash | | 129,555 | 124,612 | | | | 493,602 | 521,640 | | Current liabilities | | | | | Trade and other payables | 9 | 128,414 | 154,823 | | Tax payable | | 1,212 | 1,096 | | Bank borrowings | | 73,306 | 67,783 | | Lease liabilities | | 2,294 | 859 | | | | 205,226 | 224,561 | | Net current assets | | 288,376 | 297,079 | | Total assets less current liabilities | | 962,027 | 945,184 | | Non-current liabilities | | | | | Lease liabilities | | 4,307 | 2,449 | | Net assets | | 957,720 | 942,735 | | Capital and reserves | | | | | Share capital | | 60,000 | 60,000 | | Reserves | | 897,720 | 882,735 | | Total equity | | 957,720 | 942,735 | [Notes](index=9&type=section&id=Notes) [Basis of Preparation](index=9&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the HKEX Listing Rules, and presented in Hong Kong dollars - The condensed consolidated financial statements are prepared in compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the HKEX Listing Rules[29](index=29&type=chunk) - The condensed consolidated financial statements are presented in Hong Kong dollars, which is the same as the Company's functional currency[30](index=30&type=chunk) [Accounting Policies](index=9&type=section&id=Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, and the accounting policies adopted are consistent with those of the previous year's consolidated financial statements, except for the application of amendments to Hong Kong Financial Reporting Standards - The condensed consolidated financial statements are prepared on a historical cost basis[31](index=31&type=chunk) [Application of Amendments to Hong Kong Financial Reporting Standards](index=9&type=section&id=Application%20of%20Amendments%20to%20Hong%20Kong%20Financial%20Reporting%20Standards) HKAS 21 (Amendment) "Lack of Exchangeability" was first applied in this interim period, but it had no significant impact on the Group's financial position and performance - HKAS 21 (Amendment) "Lack of Exchangeability" was first applied in this interim period[32](index=32&type=chunk) - The application of amendments to Hong Kong Financial Reporting Standards had no significant impact on the Group's financial position and performance for the current and prior periods[32](index=32&type=chunk) [Revenue and Segment Information](index=10&type=section&id=Revenue%20and%20Segment%20Information) The Group is engaged in the manufacturing and sale of stainless steel products, with revenue analyzed by product category and customer location, but only entity-wide disclosures are presented - The Group is engaged in the manufacturing and sale of high-grade stainless steel products, with revenue recognized at the point in time when goods are transferred to customers[33](index=33&type=chunk) - Revenue analysis focuses on segmentation by product (mobile phone casings and components, watch straps, smart wearable device casings and components, fashion jewelry) and customer geographical location[33](index=33&type=chunk) [Revenue by Major Products](index=10&type=section&id=Revenue%20by%20Major%20Products) Among the Group's major product revenues, revenue from smart wearable device casings and components grew significantly, while revenue from mobile phone casings and components, watch straps, and fashion jewelry all decreased Revenue by Product (For the six months ended June 30, 2025) | Product Category | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | | :--- | :--- | :--- | | Mobile phone casings and components | 139,652 | 152,124 | | Watch straps | 93,794 | 99,701 | | Smart wearable device casings and components | 81,314 | 52,564 | | Fashion jewelry | 9,468 | 17,856 | | **Total** | **324,228** | **322,245** | [Geographical Information](index=10&type=section&id=Geographical%20Information) The Group's revenue from China increased, while revenue from Switzerland, Hong Kong, Liechtenstein, and other European countries decreased Revenue by Region (For the six months ended June 30, 2025) | Region | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | | :--- | :--- | :--- | | China | 158,331 | 138,145 | | Switzerland | 84,906 | 94,669 | | Hong Kong | 41,760 | 45,734 | | Vietnam | 17,396 | 15,684 | | Liechtenstein and other European countries | 8,748 | 17,529 | | Taiwan | 6,281 | 7,229 | | Other countries | 6,806 | 3,255 | | **Total** | **324,228** | **322,245** | [(Loss) Profit Before Tax](index=11&type=section&id=%28Loss%29%20Profit%20Before%20Tax) This section details the various expenses and incomes deducted or included in the calculation of (loss) profit before tax, including staff costs, depreciation, interest, and exchange gains/losses (Loss) Profit Before Tax Composition (For the six months ended June 30, 2025) | Item | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | | :--- | :--- | :--- | | Total staff costs | 140,126 | 124,708 | | Depreciation of property, plant and equipment | 24,826 | 25,918 | | Depreciation of right-of-use assets | 2,007 | 2,080 | | Finance costs | 1,143 | 1,565 | | Loss on disposal of property, plant and equipment | 201 | 594 | | Net exchange loss (gain) | 130 | (2,845) | | Gain on surrender of a life insurance policy | (848) | - | [Tax](index=12&type=section&id=Tax) This section describes the tax policies applicable to the Group in Hong Kong and mainland China, including Hong Kong Profits Tax's two-tiered system, China Corporate Income Tax's preferential policies, and super deduction for R&D expenses 2025 First Half Tax Expense | Tax Category | 2025 First Half (HK$ Thousand) | 2024 First Half (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax (current period) | 200 | 3,188 | | China Corporate Income Tax (current period) | 568 | 288 | | China Corporate Income Tax (over-provision in prior years) | (195) | (148) | | **Total Tax Expense** | **573** | **3,328** | [Hong Kong Profits Tax](index=12&type=section&id=Hong%20Kong%20Profits%20Tax) Hong Kong Profits Tax implements a two-tiered system, where eligible entities are taxed at 8.25% on the first HK$2 million of assessable profits and 16.5% on the excess - Hong Kong Profits Tax two-tiered system: **8.25%** for the first **HK$2 million** of assessable profits, and **16.5%** for the portion exceeding **HK$2 million**[38](index=38&type=chunk) [China Corporate Income Tax](index=12&type=section&id=China%20Corporate%20Income%20Tax) China Group entities' tax rate is 25%, with some high-tech enterprises enjoying a 15% preferential tax rate and eligible for a 200% super deduction for R&D expenses - The corporate income tax rate for China Group entities is **25%**[39](index=39&type=chunk) - Certain Chinese subsidiaries have been granted high-tech enterprise certificates, qualifying them for a **15%** tax rate for the three years ending December 31, 2025[39](index=39&type=chunk) - Enterprises engaged in R&D activities are entitled to claim **200%** of their eligible R&D expenses as deductible expenses (super deduction)[39](index=39&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Company's Board of Directors did not recommend a final dividend for 2024, nor declared an interim dividend for the first half of 2025 - The Company's Board of Directors did not recommend a final dividend for the year ended December 31, 2024 (2024: **2.0 HK cents** per ordinary share)[40](index=40&type=chunk) - The Company's Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: **HK$3,000,000**)[40](index=40&type=chunk) [(Loss) Earnings Per Share](index=13&type=section&id=%28Loss%29%20Earnings%20Per%20Share) The Group's basic loss per share for the first half of 2025 was 2.3 HK cents, compared to basic earnings per share of 1.5 HK cents in the same period last year - Diluted (loss) earnings per share are not presented as there were no potential ordinary shares outstanding for both periods[41](index=41&type=chunk) 2025 First Half (Loss) Earnings Per Share | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | (Loss) Profit used to calculate basic (loss) earnings per share | (13,821) HK$ Thousand | 9,255 HK$ Thousand | | Weighted average number of shares | 600,000,000 | 600,000,000 | | Basic (loss) earnings per share | (2.3 HK Cents) | 1.5 HK Cents | [Trade and Other Receivables](index=14&type=section&id=Trade%20and%20Other%20Receivables) The Group's total trade and other receivables amounted to HK$215,263,000, with trade receivables and bills receivable being the main components, and an aging analysis is provided - As of June 30, 2025, the Group held bills receivable totaling **HK$79,882,000**, of which **HK$48,986,000** were discounted with recourse[43](index=43&type=chunk) Trade and Other Receivables Composition (As of June 30, 2025) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 113,081 | 166,055 | | Bills receivable (net of allowance) | 79,882 | 41,018 | | VAT receivables | 16,281 | 18,094 | | Prepayments and deposits | 3,206 | 4,165 | | Refundable lease deposits | 502 | 330 | | Others | 2,311 | 2,264 | | **Total Trade and Other Receivables** | **215,263** | **231,926** | Trade Receivables Ageing Analysis (As of June 30, 2025) | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 39,877 | 56,788 | | 31 to 60 days | 44,180 | 50,620 | | 61 to 90 days | 20,989 | 32,238 | | Over 90 days | 8,035 | 26,409 | | **Total** | **113,081** | **166,055** | [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) The Group's total trade and other payables amounted to HK$128,414,000, with trade payables being the main component, and an aging analysis is provided Trade and Other Payables Composition (As of June 30, 2025) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade payables | 94,320 | 116,514 | | Wages and welfare payables | 16,039 | 19,029 | | VAT payable | 456 | 355 | | Commission and other payables to agents | 3,891 | 3,977 | | Payables for acquisition of property, plant and equipment | 5,368 | 5,729 | | Other tax payables | 976 | 748 | | Accrued expenses | 6,098 | 6,552 | | Interest payable | 176 | 91 | | Others | 1,090 | 1,828 | | **Total** | **128,414** | **154,823** | Trade Payables Ageing Analysis (As of June 30, 2025) | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 15,637 | 27,961 | | 31 to 60 days | 20,856 | 29,130 | | 61 to 90 days | 29,830 | 31,342 | | Over 90 days | 28,081 | 27,997 | | **Total** | **94,320** | **116,514** | [Corporate Governance and Other Information](index=16&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance](index=16&type=section&id=Corporate%20Governance) The Company is committed to maintaining high standards of corporate governance and has complied with all applicable provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the review period - The Company is committed to establishing and maintaining high standards of corporate governance and has complied with all applicable provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[46](index=46&type=chunk) [Purchase, Sale or Redemption of the Company’s Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%E2%80%99s%20Listed%20Securities) During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[47](index=47&type=chunk) [Standard Code for Securities Transactions by Directors](index=16&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance with the Code throughout the review period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[48](index=48&type=chunk) - All Directors have confirmed their compliance with the required standards set out in the Standard Code during the six months ended June 30, 2025[48](index=48&type=chunk) [Review of Interim Results](index=16&type=section&id=Review%20of%20Interim%20Results) The Group's interim results for the six months ended June 30, 2025, are unaudited but have been reviewed by Deloitte Touche Tohmatsu and the Company's Audit Committee - The Group's interim results for the six months ended June 30, 2025, are unaudited but have been reviewed by Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410[49](index=49&type=chunk) - The interim results have also been reviewed by the Company's Audit Committee[49](index=49&type=chunk) [Interim Dividend](index=16&type=section&id=Interim%20Dividend) The Board of Directors did not recommend an interim dividend for the six months ended June 30, 2025 - The Board of Directors did not recommend an interim dividend for the six months ended June 30, 2025 (2024: **0.5 HK cents**)[50](index=50&type=chunk) [Other](index=17&type=section&id=Other) [Acknowledgement](index=17&type=section&id=Acknowledgement) The Board of Directors sincerely thanks all customers, suppliers, shareholders, and Group employees for their support and contributions during the period - The Board of Directors sincerely thanks all customers, suppliers, and shareholders for their continuous support to the Group, and also expresses gratitude to the Group's diligent employees for their contributions during the period[51](index=51&type=chunk) [Board of Directors](index=17&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises six executive directors and three independent non-executive directors - As of the date of this announcement, the Board of Directors includes six executive directors (Mr. Yao Hon Ming, Mr. Yao Tat Sing, Mr. Li Chin Keung, Ms. Lo Wai Ping, Mr. Chow Kam Wing, and Ms. Yao Ho Ting) and three independent non-executive directors (Mr. Hou Pak Kin, Professor Wong Lung Tak Patrick, and Mr. Wu Ming Lin)[53](index=53&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佈之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部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。 聯 合 集 團 有 限 公 司 (ALLIED GROUP LIMITED) （於香港註冊成立之有限公司） （股份代號：373） 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 聯 合 集 團 有 限 公 司（「本 公 司」）之 董 事 會（「董 事 會」）欣 然 宣 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 之 未 經 審 核 簡 明 綜 合 業 績 連 同 二零二四年同期之比較數字如下： 簡明綜合損益表 截至二零二五年六月三十日止六個月 | | | | | | | 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 | | | ...

[Performance Highlights](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) The Group experienced significant declines in revenue and profit for the first half of 2025, reflecting a challenging market 2025 Half-Year Key Financial Data (RMB thousand) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 522,592 | 742,125 | (29.6) | | Gross Profit | 56,691 | 86,481 | (34.4) | | Profit Before Tax | 16,503 | 26,141 | (36.9) | | Profit for the Period | 11,932 | 21,884 | (45.5) | | Profit for the Period Attributable to Owners of the Company | 13,612 | 20,228 | (32.7) | | Earnings Per Share (RMB cents) | 5.06 | 7.52 | (32.7) | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's financial position and performance via condensed statements and explanatory notes [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Revenue decreased by 29.6% to RMB 522.6 million, with profit for the period down 45.5% to RMB 11.9 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 522,592 | 742,125 | | Cost of Sales and Services | (465,901) | (655,644) | | Gross Profit | 56,691 | 86,481 | | Other Income | 8,288 | 3,337 | | Other Gains and Losses | (446) | (3,489) | | Selling and Distribution Expenses | (10,217) | (13,567) | | Administrative Expenses | (19,130) | (19,787) | | Research and Development Expenses | (17,468) | (26,382) | | Profit Before Tax | 16,503 | 26,141 | | Taxation | (4,571) | (4,257) | | Profit and Total Comprehensive Income for the Period | 11,932 | 21,884 | | Profit for the Period Attributable to Owners of the Company | 13,612 | 20,228 | | Non-controlling Interests | (1,680) | 1,656 | | Basic and Diluted Earnings Per Share (RMB cents) | 5.06 | 7.52 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets less current liabilities were RMB 664.9 million, with stable cash and cash equivalents at RMB 441.1 million Condensed Consolidated Statement of Financial Position (RMB thousand) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 59,486 | 60,102 | | Current Assets | 724,397 | 694,552 | | Current Liabilities | 105,390 | 89,114 | | Net Current Assets | 605,438 | 619,007 | | Total Assets Less Current Liabilities | 664,924 | 679,109 | | Equity Attributable to Owners of the Company | 665,078 | 676,111 | | Total Equity | 676,757 | 664,044 | | Non-current Liabilities | 880 | 2,352 | - Trade receivables increased from **RMB 157.2 million** as of December 31, 2024, to **RMB 186.2 million** as of June 30, 2025, primarily due to an increase in third-party receivables[8](index=8&type=chunk) - Cash and cash equivalents remained stable, slightly decreasing from **RMB 442.3 million** as of December 31, 2024, to **RMB 441.1 million** as of June 30, 2025[8](index=8&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation, accounting policies, revenue, segment information, and specific accounts [1. Basis of Preparation](index=4&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and applicable Listing Rules - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - These statements should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[9](index=9&type=chunk) [2. Significant Accounting Policies](index=4&type=section&id=2.%20%E9%87%8D%E5%A4%A7%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) Financial statements are prepared on a historical cost basis, with consistent accounting policies applied from the 2024 annual report - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[10](index=10&type=chunk) - The accounting policies adopted in the current period are consistent with those in the 2024 annual report, and the adoption of new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes[10](index=10&type=chunk)[11](index=11&type=chunk) [3. Revenue and Segment Information](index=4&type=section&id=3.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's primary operations include online advertising, gaming platforms, smart accessories, and mobile e-commerce - The Group is principally engaged in providing online advertising services, online game platforms, operating exclusively licensed online game businesses, and selling smart accessories in China[12](index=12&type=chunk) - Since 2024, the Group has developed a mobile e-commerce business, providing online traffic acquisition services and acting as a principal[13](index=13&type=chunk) Revenue by Business Line (RMB thousand) | Business Line | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Online Advertising Services | 334,301 | 279,782 | | Online Game Platform | 15,787 | 16,988 | | Operating Exclusively Licensed Online Game Business | 171,272 | 445,343 | | Sales of Smart Accessories | 1,232 | 12 | | Total | 522,592 | 742,125 | Revenue by Geographical Region (RMB thousand) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China | 409,574 | 713,439 | | Overseas | 113,018 | 28,686 | | Total | 522,592 | 742,125 | [4. Other Income](index=6&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income significantly increased to RMB 8.3 million, primarily driven by a substantial rise in government grants Other Income Details (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 5,304 | 94 | | Interest Income from Bank Deposits | 2,248 | 2,885 | | Interest Income from Financial Assets at FVTPL | 502 | 358 | | Others | 234 | – | | Total | 8,288 | 3,337 | - Government grants significantly increased, mainly from high-tech and new development subsidies provided by local government authorities[20](index=20&type=chunk) [5. Other Gains and Losses](index=7&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) Other gains and losses reduced to a RMB 0.4 million loss, mainly due to the absence of prior year's non-listed equity investment losses Other Gains and Losses Details (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Fair Value Gains/(Losses) on Financial Assets at FVTPL | 23 | (3,000) | | Impairment Losses under ECL Model (net of reversal) | (245) | (195) | | Net Exchange Losses | (120) | (215) | | Provision for Compensation | – | (200) | | Others | (104) | 121 | | Total | (446) | (3,489) | - Other gains and losses decreased from a loss of **RMB 3.5 million** in the same period of 2024 to a loss of **RMB 0.4 million** in the same period of 2025, primarily due to the absence of non-listed equity investment losses recognized in the first half of 2024[22](index=22&type=chunk) [6. Taxation](index=7&type=section&id=6.%20%E7%A8%85%E9%A0%85) Total taxation increased to RMB 4.6 million, primarily due to withholding tax provisions on dividends from Chinese subsidiaries Taxation Details (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China Corporate Income Tax | 1,119 | 3,309 | | Hong Kong Tax | 69 | – | | Singapore Tax | 204 | – | | Dividend Withholding Tax | 2,900 | – | | Deferred Tax | 279 | 948 | | Total | 4,571 | 4,257 | - Total taxation increased from **RMB 4.3 million** in the same period of 2024 to **RMB 4.6 million** in the same period of 2025, mainly due to the Group making a withholding tax provision at a 5% rate on dividends from its Chinese subsidiaries[24](index=24&type=chunk) [7. Earnings Per Share](index=8&type=section&id=7.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share decreased to RMB 5.06 cents, reflecting the decline in profit attributable to owners Earnings Per Share Calculation (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 13,612 | 20,228 | | Weighted Average Number of Ordinary Shares | 269,000 | 269,000 | | Basic and Diluted Earnings Per Share (RMB cents) | 5.06 | 7.52 | - No diluted earnings per share are presented as there were no potential ordinary shares outstanding for both periods[25](index=25&type=chunk) [8. Trade Receivables](index=8&type=section&id=8.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Total trade receivables increased to RMB 186.2 million, primarily driven by an increase in third-party receivables Trade Receivables Details (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Related Parties | 9,068 | 8,572 | | Third Parties | 184,786 | 156,159 | | Less: Provision for Credit Losses | (7,691) | (7,500) | | Total | 186,163 | 157,231 | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 153,809 | 135,587 | | 91 to 180 days | 29,690 | 20,098 | | Over 180 days | 2,664 | 1,546 | | Total | 186,163 | 157,231 | - Total trade receivables increased from **RMB 157.2 million** as of December 31, 2024, to **RMB 186.2 million** as of June 30, 2025, with the main growth coming from third-party receivables[26](index=26&type=chunk) [9. Other Receivables, Deposits and Prepayments](index=9&type=section&id=9.%20%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) Total other receivables, deposits, and prepayments decreased to RMB 81.6 million, mainly due to reduced prepayments for online traffic services Other Receivables, Deposits and Prepayments Details (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments for Game Development and Licensing (Non-current) | 14,873 | 14,873 | | Other Receivables (Current) | 15,283 | 14,567 | | Prepayments and Deferred Expenses (Current) | 32,712 | 42,280 | | Amounts Due from Associates (Current) | 14,300 | 14,300 | | Online Payment Platforms (Current) | 3,739 | 7,821 | | Total | 81,599 | 95,702 | - Prepayments and deferred expenses (primarily prepayments for online traffic acquisition services) decreased from **RMB 42.3 million** as of December 31, 2024, to **RMB 32.7 million** as of June 30, 2025, with **RMB 23.5 million** fully utilized by July 2025[29](index=29&type=chunk)[31](index=31&type=chunk) [10. Trade and Other Payables](index=10&type=section&id=10.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Total trade and other payables decreased to RMB 69.6 million, primarily due to reductions in trade payables, staff costs, and other tax payables Trade and Other Payables Details (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables (Third Parties) | 49,333 | 53,534 | | Other Payables | 5,231 | 8,025 | | Accrued Staff Costs | 7,780 | 13,945 | | Other Tax Payables | 4,137 | 8,930 | | Total | 69,556 | 86,223 | - Total trade and other payables decreased from **RMB 86.2 million** as of December 31, 2024, to **RMB 69.6 million** as of June 30, 2025, mainly due to a reduction in trade payables, accrued staff costs, and other tax payables[30](index=30&type=chunk) [Business Review](index=11&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group focused on online traffic monetization, product iteration, and exploring overseas mobile e-commerce amidst a challenging internet industry - In the first half of 2025, the Chinese internet industry experienced shrinking profitability, intense competition in online advertising, and conservative advertising spending due to changing user consumption patterns[32](index=32&type=chunk) - The Group continued to prioritize online traffic monetization, including iterating online advertising products, developing new products, and exploring overseas mobile e-commerce businesses[33](index=33&type=chunk) - The PC version of **"Lu Da Master Software"** actively adapted to market changes by collaborating with promotion platforms to expand its user base and utilizing AI to optimize evaluation methods, introducing paid subscription features[35](index=35&type=chunk) - For online game business, the Group acquired new players through marketing, optimized player services, and actively advanced new online game development, with **"Kung Fu Panda: Dragon Warrior"** expected to launch in Q4 2025[33](index=33&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - The Group continued to invest in overseas mobile product R&D, particularly seeing growth in health management tools, and plans to increase investment in mobile AI application fields[38](index=38&type=chunk) - The jointly launched **"Lu Da Master AiNAS"** product adopted a "live streaming hardware sales + value-added paid services" model, with plans for market launch in the second half of 2025 and future expansion into online, offline, and overseas markets[39](index=39&type=chunk) [Outlook](index=14&type=section&id=%E5%B1%95%E6%9C%9B) The Group is confident in existing businesses and committed to new developments, including expanding product matrices and seeking new online games - The Group is confident in its existing businesses and committed to developing new ventures, including enriching its domestic PC and overseas mobile product matrix, expanding mobile e-commerce, and seeking suitable exclusively licensed online games[41](index=41&type=chunk) - Future strategies include continuous updates to **"Lu Da Master Software"** PC version, developing PC-side utility products, publishing and operating exclusively licensed online games in China and overseas, enhancing precise targeting capabilities for mobile e-commerce, and expanding overseas markets[41](index=41&type=chunk)[43](index=43&type=chunk) - The Group will increase investment in mobile AI application scenarios, acquire users through R&D and promotion of richer utility products, and solidify its brand image as a reliable hardware expert[43](index=43&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the Group's financial performance, liquidity, and operational highlights [Revenue](index=15&type=section&id=%E6%94%B6%E5%85%A5) Group revenue decreased by 29.6% to RMB 522.6 million, primarily due to the maturity of key licensed online games [Online Traffic Monetization](index=16&type=section&id=%E5%9C%A8%E7%B7%9A%E6%B5%81%E9%87%8F%E8%AE%8A%E7%8F%BE) Online advertising services revenue grew by 19.5%, while revenue from operating exclusively licensed online games significantly declined Revenue by Business Line (RMB thousand) | Business Line | 2025 (RMB thousand) | 2024 (RMB thousand) | Proportion (2025) | Proportion (2024) | | :--- | :--- | :--- | :--- | :--- | | Online Advertising Services | 334,301 | 279,782 | 64.0% | 37.6% | | Online Game Platform | 15,787 | 16,988 | 3.0% | 2.3% | | Operating Exclusively Licensed Online Game Business | 171,272 | 445,343 | 32.8% | 60.0% | | Sales of Smart Accessories | 1,232 | 12 | 0.2% | 0.1% | | Total | 522,592 | 742,125 | 100.0% | 100.0% | - Online advertising services revenue increased by **19.5%** to **RMB 334.3 million**, mainly driven by the recovering momentum of the mobile e-commerce business launched in early 2024[45](index=45&type=chunk) - Revenue from operating exclusively licensed online game business significantly decreased by **61.5%** to **RMB 171.3 million**, primarily because the games have been online for a longer period, leading to reduced user activity and willingness to pay[47](index=47&type=chunk) [Sales of Electronic Devices](index=17&type=section&id=%E9%9B%BB%E5%AD%90%E8%A8%AD%E5%82%99%E9%8A%B7%E5%94%AE) Revenue from sales of electronic devices increased significantly to RMB 1.2 million, driven by increased sales or lending of hardware products - Revenue from sales of electronic devices increased by over **100.0%** to **RMB 1.2 million**, mainly due to increased revenue from the sale or lending of electronic hardware products[48](index=48&type=chunk) [Trade Receivables](index=17&type=section&id=%E6%87%89%E6%94%B6%E8%B3%AC%E6%AC%BE) Approximately 75.5% of trade receivables as of June 30, 2025, were related to mobile e-commerce business, with a high probability of timely collection - As of June 30, 2025, approximately **75.5%** of trade receivables were related to the mobile e-commerce business, which the Group believes has a very high probability of timely collection[49](index=49&type=chunk) [Cost of Sales and Services](index=18&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E6%9C%8D%E5%8B%99%E6%88%90%E6%9C%AC) Cost of sales and services decreased by 29.2% to RMB 465.9 million, primarily due to reduced costs in operating exclusively licensed online games [Online Traffic Monetization Costs](index=18&type=section&id=%E5%9C%A8%E7%B7%9A%E6%B5%81%E9%87%8F%E8%AE%8A%E7%8F%BE%E6%88%90%E6%9C%AC) Online traffic monetization costs decreased by 29.2% to RMB 463.8 million, mainly due to lower costs for operating licensed online games Cost of Sales and Services Details (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Proportion (2025) | Proportion (2024) | | :--- | :--- | :--- | :--- | :--- | | Advertising and Promotion | 458,918 | 650,884 | 98.5% | 99.3% | | Server Rental | 4,919 | 4,653 | 1.1% | 0.6% | | Sales of Smart Accessories | 2,064 | 107 | 0.4% | 0.1% | | Total | 465,901 | 655,644 | 100.0% | 100.0% | - Online traffic monetization business costs decreased by **29.2%** to **RMB 463.8 million**, primarily attributable to a reduction in costs for operating exclusively licensed online game businesses[51](index=51&type=chunk) [Cost of Sales of Electronic Devices](index=18&type=section&id=%E9%9B%BB%E5%AD%90%E8%A8%AD%E5%82%99%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales of electronic devices increased significantly to RMB 2.1 million, driven by higher costs associated with selling or leasing hardware - Cost of sales of electronic devices increased by over **100.0%** to **RMB 2.1 million**, mainly due to increased costs associated with the sale or rental of electronic hardware products[52](index=52&type=chunk) [Gross Profit](index=19&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit decreased by 34.4% to RMB 56.7 million, with the margin declining to 10.8% due to increased lower-margin business Gross Profit and Gross Profit Margin (RMB thousand) | Business Line | 2025 Gross Profit (RMB thousand) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousand) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Online Traffic Monetization | 57,523 | 11.0 | 86,576 | 11.7 | | Sales of Electronic Devices | (832) | (67.5) | (95) | (791.7) | | Total Gross Profit and Gross Profit Margin | 56,691 | 10.8 | 86,481 | 11.7 | [Other Income](index=19&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income more than doubled to RMB 8.3 million, primarily attributable to an increase in government grants - Other income increased from approximately **RMB 3.3 million** in the same period of 2024 to approximately **RMB 8.3 million** in the same period of 2025[54](index=54&type=chunk) [Other Gains and Losses](index=19&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) Other gains and losses significantly reduced from a loss of RMB 3.5 million in 2024 to a loss of RMB 0.4 million in 2025 - Other gains and losses decreased from a loss of approximately **RMB 3.5 million** in the same period of 2024 to a loss of approximately **RMB 0.4 million** in the same period of 2025[55](index=55&type=chunk) [Administrative Expenses](index=20&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses slightly decreased by 3.3% to RMB 19.1 million, remaining largely consistent with the prior period - Administrative expenses decreased from approximately **RMB 19.8 million** in the same period of 2024 to approximately **RMB 19.1 million** in the same period of 2025[56](index=56&type=chunk) [Research and Development Expenses](index=20&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) Research and development expenses decreased by 33.8% to RMB 17.5 million, primarily due to a reduction in R&D employees - Research and development expenses decreased from approximately **RMB 26.4 million** in the same period of 2024 to approximately **RMB 17.5 million** in the same period of 2025[57](index=57&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses decreased by 24.7% to RMB 10.2 million, mainly due to lower marketing costs and reduced staff remuneration - Selling and distribution expenses decreased from approximately **RMB 13.6 million** in the same period of 2024 to approximately **RMB 10.2 million** in the same period of 2025[58](index=58&type=chunk) [Taxation](index=20&type=section&id=%E7%A8%85%E9%A0%85) Taxation increased by 7.4% to RMB 4.6 million, primarily due to significant withholding tax provisions on dividends from mainland Chinese subsidiaries - Taxation increased from approximately **RMB 4.3 million** in the same period of 2024 to approximately **RMB 4.6 million** in the same period of 2025[59](index=59&type=chunk) [Profit and Total Comprehensive Income for the Period](index=20&type=section&id=%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9%E5%8F%8A%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E7%B8%BD%E9%A1%8D) Profit and total comprehensive income for the period significantly decreased by 45.5% to RMB 11.9 million, impacted by declining revenue - Profit and total comprehensive income for the period decreased from approximately **RMB 21.9 million** in the same period of 2024 to approximately **RMB 11.9 million** in the same period of 2025[60](index=60&type=chunk) [Liquidity, Financial Resources and Gearing Ratio](index=20&type=section&id=%E6%B5%81%E5%8B%95%E6%80%A7%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%88%87%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The Group maintains sufficient liquidity with RMB 441.1 million in cash and no bank borrowings, thus no gearing ratio is presented - As of June 30, 2025, bank balances and cash were approximately **RMB 441.1 million**, a slight decrease from approximately **RMB 442.3 million** as of December 31, 2024[61](index=61&type=chunk) - The Group faces limited and controllable foreign currency risk and will continue to monitor exchange rate fluctuations[62](index=62&type=chunk) - As of June 30, 2025, the Group had no bank borrowings[63](index=63&type=chunk) [Capital Expenditure](index=21&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure for the six months ended June 30, 2025, was RMB 123 thousand, primarily for property and equipment purchases Capital Expenditure (RMB thousand) | Item | Six Months Ended June 30, 2025 (RMB thousand) | Year Ended December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Purchase of Property and Equipment | 123 | 531 | [Material Investments Held](index=21&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group invested RMB 95 million in principal-protected structured deposit products with China Merchants Bank, all of which matured and yielded interest within the reporting period - The Group subscribed to two principal-protected structured deposit products offered by China Merchants Bank, totaling **RMB 95 million**, with expected annualized interest rates ranging from **1.85% to 2.31%**[67](index=67&type=chunk)[68](index=68&type=chunk) - These products involved minimal risk, offered returns higher than general deposit rates, and had short maturities, thus not impacting operational liquidity[66](index=66&type=chunk) - As of June 30, 2025, all structured deposit products had matured, with actual interest received totaling **RMB 170,876.71** and **RMB 199,356.16** respectively, and no unredeemed products remained[69](index=69&type=chunk) [Material Acquisitions and Disposals](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) The Group did not undertake any material acquisitions or disposals during the reporting period - During the reporting period, the Group did not make any material acquisitions or disposals[70](index=70&type=chunk) [Future Plans for Material Investments or Capital Assets](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, the Group had no future plans for material investments or capital assets - As of June 30, 2025, the Group had no future plans for material investments or capital assets[71](index=71&type=chunk) [Employees and Remuneration Policy](index=24&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group employed 208 full-time staff as of June 30, 2025, primarily in China, offering competitive remuneration, performance bonuses, and continuous training - As of June 30, 2025, the Group had **208** full-time employees, with **89** responsible for sales and marketing and **91** for research and development[72](index=72&type=chunk) - The company offers competitive remuneration, performance bonuses, and incentives, emphasizing employee training and development, including internal and external professional training programs[72](index=72&type=chunk) [Pledged Assets](index=25&type=section&id=%E6%8A%B5%E6%8A%BC%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[73](index=73&type=chunk) [Contingent Liabilities and Guarantees](index=25&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5%E5%8F%8A%E6%93%94%E4%BF%9D) As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or litigation - As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or any litigation[74](index=74&type=chunk) [Events After Reporting Period](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The Group had no significant disclosable events after June 30, 2025, up to the date of this announcement - The Group had no significant disclosable events after June 30, 2025, and up to the date of this announcement[75](index=75&type=chunk) [Interim Dividend](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[76](index=76&type=chunk) [Other Information](index=25&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers the company's compliance with corporate governance codes, securities trading standards, and reporting procedures [Compliance with Corporate Governance Code](index=25&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company complied with all applicable code provisions of the Corporate Governance Code, except for the combined roles of Chairman and CEO - The Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules, except for code provision C.2.1[77](index=77&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Tian Ye, which the Board believes ensures unified leadership and enhances strategic planning efficiency within the Group[77](index=77&type=chunk) [Standard Code for Securities Transactions](index=26&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company adopted the Standard Code for securities transactions by directors, with all directors confirming strict compliance during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its own code of conduct regarding securities transactions by the Directors[78](index=78&type=chunk) - All Directors have confirmed that they have strictly complied with the required standards set out in the Standard Code throughout the reporting period[78](index=78&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=26&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period, holding no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange[79](index=79&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[79](index=79&type=chunk) [Audit Committee and Review of Interim Results](index=26&type=section&id=%E5%AF%A9%E8%A8%88%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Audit Committee reviewed the unaudited interim results, and the Company's auditor reviewed the condensed consolidated financial statements - The Audit Committee has reviewed the unaudited interim results of the Group for the six months ended June 30, 2025[81](index=81&type=chunk) - The Company's auditor has reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410[81](index=81&type=chunk) [Publication of Interim Results and Interim Report](index=26&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement is published on the HKEX and Company websites, with the full interim report to be dispatched to shareholders and published later - This interim results announcement is published on the website of the Stock Exchange (www.hkexnews.hk) and the Company's website (www.ludashi.com)[82](index=82&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders who request a printed copy and published on the Stock Exchange's website and the Company's website in due course[82](index=82&type=chunk) [Definitions](index=27&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used throughout the announcement, ensuring clarity and consistency - This section provides definitions for key terms used in the announcement, including "AI", "Audit Committee", "PRC Operating Entities", "Lu Da Master Software", and "Monthly Active Users"[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk)[88](index=88&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 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 巨子生物控股有限公司（「本公司」、「公 司」或「巨子生物」）董 事（「董 事」）會（「董 事 會」）欣然宣佈本公司及其附屬公司（統 稱「本集團」）截 至2025年6月30日止六個月 （「報告期」）之未經審核簡明合併中期業績以及2024年 同 期 的 比 較 數 字。上 述 中 期業績根據《國 際 財 務 報 告 準 則》（「《國 際 財 務 報 告 準 則》」）編 製，並 已 經 本 公 司 審核委員會（「審核委員會」）審 閱。截 至2025年6月30日止六個月的中期業績未經 審 核，但 已 由 本 公 司 獨 立 核 數 師 安 永 會 計 師 事 務 所 根 據 香 港 會 計 師 公 會 頒 佈 的香港審閱工作準則第2410號「實 體 的 獨 立 核 數 師 對 中 期 財 務 資 料 的 審 閱」進 行 審 閱。 GIANT BIOGENE ...

[Company Information and Report Overview](index=1&type=section&id=Company%20Information%20and%20Report%20Overview) This section provides an overview of the company's basic information and the basis for preparing its financial statements [Company Basic Information](index=1&type=section&id=1.1%20Company%20Basic%20Information) Yinsheng Digifavor Company Limited is an investment holding company registered in the Cayman Islands, listed on the Main Board of the Hong Kong Stock Exchange, primarily offering mobile top-up and digital marketing services in China - The company is registered in the Cayman Islands, with shares listed on the Main Board of the Hong Kong Stock Exchange[7](index=7&type=chunk) - The Group's principal businesses are mobile top-up services and digital marketing services[7](index=7&type=chunk) [Basis of Report Preparation](index=5&type=section&id=1.2%20Basis%20of%20Report%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, using the historical cost convention, and consolidate Shenzhen Niannianka's financials via a VIE arrangement due to the Group's control - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules of the Stock Exchange[8](index=8&type=chunk) - The Group exercises control over Shenzhen Niannianka Network Technology Co., Ltd. through structured contracts (VIE arrangements) and consolidates its financial position and performance into the condensed consolidated financial statements[8](index=8&type=chunk)[9](index=9&type=chunk) - The condensed consolidated financial statements are prepared on a historical cost basis and presented in RMB[11](index=11&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated statements of profit or loss and other comprehensive income, and financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue increased by **14.0%** to **RMB 69,917 thousand**, while gross profit decreased by **8.3%** to **RMB 44,088 thousand**, with total profit and comprehensive income for the period significantly down **41.3%** to **RMB 12,305 thousand**, and basic earnings per share at **RMB 3.00 cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 69,917 | 61,312 | +14.0% | | Cost of revenue | (25,526) | (11,873) | +114.9% | | Gross profit | 44,088 | 48,130 | -8.3% | | Net other income | 2,796 | 7,645 | -63.4% | | Distribution and selling expenses | (12,666) | (6,586) | +92.3% | | Administrative expenses | (11,536) | (13,735) | -16.0% | | Research and development expenses | (6,115) | (5,333) | +14.7% | | Finance costs | (2,443) | (1,224) | +99.6% | | Profit before income tax | 14,124 | 28,897 | -51.1% | | Income tax expense | (1,819) | (8,076) | -77.5% | | Profit and total comprehensive income for the period | 12,305 | 20,821 | -41.0% | | Profit attributable to owners of the Company | 12,463 | 21,315 | -41.5% | | Basic and diluted earnings per share (RMB cents) | 3.00 | 5.14 | -41.6% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities increased to **RMB 331,116 thousand**, with net current assets rising to **RMB 326,316 thousand** and a significant increase in cash and cash equivalents, while trade receivables and borrowings also rose Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **NON-CURRENT ASSETS** | | | | | Property, plant and equipment | 2,989 | 3,483 | -14.2% | | Right-of-use assets | 1,174 | 1,012 | +16.0% | | Total non-current assets | 4,800 | 5,060 | -5.2% | | **CURRENT ASSETS** | | | | | Inventories | 7,537 | 15,731 | -52.0% | | Trade receivables | 312,089 | 284,437 | +9.7% | | Prepayments, deposits and other receivables | 156,417 | 195,360 | -19.9% | | Cash and cash equivalents | 141,050 | 50,841 | +177.4% | | Total current assets | 622,025 | 555,764 | +11.9% | | **CURRENT LIABILITIES** | | | | | Trade payables | 50,662 | 42,407 | +19.5% | | Other payables and accrued charges | 64,594 | 77,180 | -16.4% | | Borrowings | 179,900 | 122,000 | +47.5% | | Total current liabilities | 295,709 | 242,153 | +22.1% | | Net current assets | 326,316 | 313,611 | +4.0% | | Total assets less current liabilities | 331,116 | 318,671 | +3.9% | | **NET ASSETS** | 320,948 | 308,643 | +4.0% | | Total equity attributable to owners of the Company | 323,708 | 311,245 | +4.0% | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes and breakdowns for various accounts presented in the condensed consolidated financial statements [Revenue and Segment Information](index=7&type=section&id=3.1%20Revenue%20and%20Segment%20Information) The Group restructured its reporting into "Top-up Services" and "Digital Marketing Services" segments, with digital marketing revenue significantly growing to **49.1%** of total revenue, indicating optimized revenue structure, while top-up service revenue declined Revenue from Contracts with Customers (For the six months ended June 30) | Service Category | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Mobile top-up services | 35,610 | 52,245 | -31.9% | | Digital marketing services - commission income from marketing activities | 33,487 | 7,684 | +335.8% | | Digital marketing services - live streaming service income | 820 | 739 | +10.9% | | **Total Revenue** | **69,917** | **61,312** | **+14.0%** | Segment Results (Gross Profit) (For the six months ended June 30) | Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Top-up service revenue | 35,610 | 52,414 | -32.0% | | Top-up service gross profit | 29,068 | 41,279 | -29.6% | | Digital marketing service revenue | 34,307 | 8,898 | +285.6% | | Digital marketing service gross profit | 15,020 | 6,851 | +119.2% | | **Total Gross Profit** | **44,088** | **48,130** | **-8.3%** | - Digital marketing business revenue accounted for approximately **49.1%** of the Group's total revenue, indicating a more balanced revenue structure[43](index=43&type=chunk) [Finance Costs](index=9&type=section&id=3.2%20Finance%20Costs) Finance costs for the period increased by **99.6%** year-on-year to **RMB 2,443 thousand**, primarily driven by significant increases in interest on bank borrowings and bank overdrafts Details of Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank overdrafts | 702 | 395 | +77.7% | | Interest on bank borrowings | 1,471 | 784 | +87.6% | | Interest on other borrowings | 238 | – | N/A | | Interest on lease liabilities | 32 | 45 | -28.9% | | **Total** | **2,443** | **1,224** | **+99.6%** | [Profit Before Income Tax](index=9&type=section&id=3.3%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, profit before income tax was **RMB 14,124 thousand**, a **51.1%** decrease from **RMB 28,897 thousand** in the prior period, mainly due to increased staff costs, depreciation, auditor's remuneration, and reduced interest income Items Deducted From/Credited to Profit Before Income Tax (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total staff costs | 23,994 | 19,312 | +24.2% | | Depreciation of property, plant and equipment | 759 | 747 | +1.6% | | Depreciation of right-of-use assets | 369 | 342 | +7.9% | | Impairment loss recognised on trade receivables | – | 815 | -100.0% | | Interest income | (44) | (181) | -75.7% | | Auditor's remuneration - non-audit services | 180 | 180 | 0.0% | [Income Tax Expense](index=10&type=section&id=3.4%20Income%20Tax%20Expense) Income tax expense for the period was **RMB 1,819 thousand**, a **77.5%** decrease from **RMB 8,076 thousand** in the prior period, primarily due to a significant decline in taxable profit, with Chinese subsidiaries subject to a **25%** corporate income tax rate and some small low-profit enterprises enjoying a **5%** preferential rate Details of Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current income tax - PRC corporate income tax | 1,589 | 6,996 | -77.3% | | Current income tax - PRC withholding tax | 110 | 1,000 | -89.0% | | Underprovision in prior periods - PRC corporate income tax | 120 | 284 | -57.7% | | Net deferred tax - PRC corporate income tax | – | (204) | N/A | | **Total Income Tax Expense** | **1,819** | **8,076** | **-77.5%** | - Chinese subsidiaries are subject to a **25%** corporate income tax rate, with some small low-profit enterprises enjoying a **5%** preferential tax rate[26](index=26&type=chunk)[27](index=27&type=chunk) [Dividends](index=10&type=section&id=3.5%20Dividends) For the six months ended June 30, 2025, the Company neither paid, declared, nor proposed any dividends - For the six months ended June 30, 2025, no dividends were paid, declared, or proposed to the ordinary shareholders of the Company[28](index=28&type=chunk) [Earnings Per Share](index=11&type=section&id=3.6%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share decreased to **RMB 3.00 cents** from **RMB 5.14 cents** in the prior period, with no diluted earnings per share presented due to the absence of potential ordinary shares Earnings Per Share (For the six months ended June 30) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB thousands) | 12,463 | 21,315 | -41.5% | | Weighted average number of ordinary shares in issue (shares) | 415,000,000 | 415,000,000 | 0.0% | | Basic and diluted earnings per share (RMB cents) | 3.00 | 5.14 | -41.6% | - No diluted earnings per share were presented for the six months ended June 30, 2025, as there were no potential ordinary shares in issue[29](index=29&type=chunk) [Property, Plant and Equipment and Right-of-Use Assets](index=11&type=section&id=3.7%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) Capital expenditure for property, plant and equipment significantly decreased to **RMB 265 thousand** for the period, and the Group recognized right-of-use assets and lease liabilities of **RMB 531 thousand** for a new 2-year office property lease agreement - For the six months ended June 30, 2025, the Group's capital expenditure on property, plant and equipment was approximately **RMB 265 thousand**, a significant decrease from **RMB 926 thousand** in the prior period[30](index=30&type=chunk) - The Group entered into a new 2-year office property lease agreement, recognizing right-of-use assets and lease liabilities of approximately **RMB 531 thousand** each[31](index=31&type=chunk) [Trade Receivables](index=12&type=section&id=3.8%20Trade%20Receivables) As of June 30, 2025, total trade receivables increased by **9.7%** to **RMB 312,089 thousand**, with a notable rise in digital marketing service receivables and a decrease in mobile top-up service receivables, and no impairment provision was made for the period Classification of Trade Receivables (As at June 30, 2025) | Service Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Mobile top-up services | 103,714 | 113,760 | -8.8% | | Telecommunication equipment business | 8,386 | 9,895 | -15.2% | | Digital marketing services | 201,629 | 162,422 | +24.1% | | Less: provision for credit losses | (1,640) | (1,640) | 0.0% | | **Total** | **312,089** | **284,437** | **+9.7%** | Ageing Analysis of Trade Receivables (As at June 30, 2025) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 30 days | 110,353 | 184,007 | -40.0% | | 31 to 90 days | 131,452 | 78,943 | +66.5% | | 91 to 180 days | 58,937 | 15,698 | +275.5% | | 181 to 365 days | 9,098 | 5,060 | +79.8% | | Over 365 days | 2,249 | 729 | +208.5% | | **Total** | **312,089** | **284,437** | **+9.7%** | - For the six months ended June 30, 2025, the Group made no impairment provision (prior period: approximately **RMB 815 thousand**)[35](index=35&type=chunk) - Trade receivables of approximately **RMB 182,516 thousand** were pledged to banks for borrowings and bank overdrafts[35](index=35&type=chunk) [Trade Payables](index=13&type=section&id=3.9%20Trade%20Payables) As of June 30, 2025, total trade payables increased by **19.5%** to **RMB 50,662 thousand** from December 31, 2024, with the Group typically enjoying a credit period of approximately **90 days** Ageing Analysis of Trade Payables (As at June 30, 2025) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 90 days | 45,185 | 34,016 | +32.8% | | 91 to 180 days | 4 | 3,003 | -99.9% | | 181 to 365 days | 522 | 745 | -29.9% | | Over 365 days | 4,951 | 4,643 | +6.6% | | **Total** | **50,662** | **42,407** | **+19.5%** | - The Group is normally granted a credit period of approximately **90 days**[36](index=36&type=chunk) [Borrowings](index=14&type=section&id=3.10%20Borrowings) As of June 30, 2025, the Group's total borrowings increased by **47.5%** to **RMB 179,900 thousand**, with secured borrowings being the largest component at interest rates between **3.2%** and **4.9%**, and increased utilization of bank overdrafts leading to reduced unutilized facilities Details of Borrowings (As at June 30, 2025) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Short-term bank borrowings | 86,400 | 72,000 | +20.0% | | Other borrowings | 10,000 | 10,000 | 0.0% | | Bank overdrafts | 83,500 | 40,000 | +108.8% | | **Total** | **179,900** | **122,000** | **+47.5%** | | Unsecured, fixed annual interest rate between 3.28% and 3.70% | 44,400 | 10,000 | +344.0% | | Secured, fixed annual interest rate between 3.2% and 4.9% | 135,500 | 112,000 | +21.0% | - Bank borrowings of approximately **RMB 135,500 thousand** were secured by certain of the Group's trade receivables, bank deposits, and guarantees from related parties[39](index=39&type=chunk) - The Group's unutilized bank overdraft facilities were approximately **RMB 26,500 thousand**, a significant decrease from **RMB 70,000 thousand** as at December 31, 2024[39](index=39&type=chunk) [Share Capital](index=15&type=section&id=3.11%20Share%20Capital) As of June 30, 2025, the Company's authorized and issued share capital remained unchanged, with ordinary shares having a par value of **USD 0.01** each and a total of **415,000,000** shares in issue Share Capital Details (As at June 30, 2025) | Item | Number of Shares | Issued and Fully Paid Share Capital (USD) | RMB | | :--- | :--- | :--- | :--- | | Authorized ordinary shares of USD 0.01 each | 2,000,000,000 | N/A | N/A | | Issued ordinary shares of USD 0.01 each | 415,000,000 | 4,150,000 | 27,221,000 | [Business Review and Financial Performance Analysis](index=16&type=section&id=Business%20Review%20and%20Financial%20Performance%20Analysis) This section provides an overview of the Group's business operations and a detailed analysis of its financial performance during the reporting period [Business Review](index=16&type=section&id=4.1%20Business%20Review) In H1 2025, China's consumer sector saw a mild recovery, digital rights penetration increased, and AI reshaped digital marketing, leading the Group to optimize its structure, focus on high-margin digital marketing for strong growth, and strategically invest in AI agents, smart user operations, and omni-channel data platforms despite short-term profit impacts from increased R&D and sales expenses - China's consumer sector experienced a mild recovery, with increased penetration of digital rights products and AI technology reshaping the digital marketing industry ecosystem[41](index=41&type=chunk) - The Group continued to optimize its business structure, focusing on the high-margin digital marketing segment, achieving strong growth through innovative customer services and expanding its portfolio of leading brand clients[42](index=42&type=chunk)[43](index=43&type=chunk) - The short-term profit decline (profit attributable to owners of the Company decreased by **41.3%**) was primarily due to increased R&D investment, staff costs, and business sales expenses driven by business expansion needs[44](index=44&type=chunk) - The Group increased its investment in AI technology R&D and application, focusing on AI agents, intelligent user operations, and omni-channel data platform construction, with R&D expenses growing by **15.1%** year-on-year[41](index=41&type=chunk)[45](index=45&type=chunk) - The self-developed digital rights trading platform "Shuhui Jucai Mall" was officially launched, and the "Shuhui Master" intelligent middle-office system was upgraded to build an intelligent marketing system and data management platform[46](index=46&type=chunk) - Future plans include developing AI agent tools for digital rights product consumption, accelerating overseas business expansion, and focusing on attracting and cultivating top talent[47](index=47&type=chunk) [Financial Performance Analysis](index=18&type=section&id=4.2%20Financial%20Performance%20Analysis) This section details the changes in the Group's financial indicators and their primary causes, including revenue growth, gross profit decline, increased expenses, and reduced income tax, reflecting the Group's financial status during a period of business transformation and increased investment [Revenue](index=18&type=section&id=4.2.1%20Revenue) Revenue for the period increased by **14.0%** year-on-year to **RMB 69.9 million**, primarily driven by significant growth in digital marketing service revenue and transaction volume, offsetting the decline in mobile top-up service revenue - Total revenue increased by **14.0%** year-on-year to **RMB 69.9 million**[48](index=48&type=chunk) - Digital marketing business revenue was approximately **RMB 34.3 million**, compared to **RMB 8.9 million** in the prior period, mainly due to expanded cooperation with well-known Chinese lifestyle service brands and financial channel clients[48](index=48&type=chunk) [Cost of Revenue](index=19&type=section&id=4.2.2%20Cost%20of%20Revenue) Cost of revenue significantly increased by **114.3%** year-on-year to **RMB 25.5 million**, primarily due to higher costs associated with digital marketing services - Cost of revenue increased by **114.3%** year-on-year to **RMB 25.5 million**, primarily due to increased costs related to digital marketing services[49](index=49&type=chunk) [Gross Profit](index=20&type=section&id=4.2.3%20Gross%20Profit) Gross profit decreased by **8.3%** year-on-year to **RMB 44.1 million**, with the overall gross profit margin declining from **78.5%** to **63.1%**, mainly due to increased platform fees and promotion costs from higher digital marketing business transaction volumes - Gross profit decreased by **8.3%** year-on-year to **RMB 44.1 million**[50](index=50&type=chunk) - The overall gross profit margin decreased from **78.5%** to **63.1%**, primarily due to increased platform fees and promotion costs resulting from higher digital marketing business transaction volumes[50](index=50&type=chunk) [Net Other Income](index=20&type=section&id=4.2.4%20Net%20Other%20Income) Net other income decreased by **63.2%** year-on-year to **RMB 2.8 million**, primarily due to a reduction in government subsidies - Net other income decreased by **63.2%** year-on-year to **RMB 2.8 million**, primarily due to a reduction in government subsidies[51](index=51&type=chunk) [Distribution and Selling Expenses](index=20&type=section&id=4.2.5%20Distribution%20and%20Selling%20Expenses) Distribution and selling expenses increased by **92.4%** year-on-year to **RMB 12.7 million**, primarily due to higher staff costs and business sales expenses driven by business expansion needs - Distribution and selling expenses increased by **92.4%** year-on-year to **RMB 12.7 million**, primarily due to increased staff costs and business sales expenses[52](index=52&type=chunk) [Administrative Expenses](index=20&type=section&id=4.2.6%20Administrative%20Expenses) Administrative expenses decreased by **16.1%** year-on-year to **RMB 11.5 million**, primarily attributable to the Group's streamlining of back-office functional department personnel - Administrative expenses decreased by **16.1%** year-on-year to **RMB 11.5 million**, primarily due to the streamlining of back-office functional department personnel[53](index=53&type=chunk) [Research and Development Expenses](index=20&type=section&id=4.2.7%20Research%20and%20Development%20Expenses) Research and development expenses increased by **15.1%** year-on-year to **RMB 6.1 million**, primarily due to higher staff costs - Research and development expenses increased by **15.1%** year-on-year to **RMB 6.1 million**, primarily due to increased staff costs[54](index=54&type=chunk) [Finance Costs](index=20&type=section&id=4.2.8%20Finance%20Costs) Finance costs increased by **100%** year-on-year to **RMB 2.4 million**, primarily due to higher average bank borrowings driven by funding requirements for new projects - Finance costs increased by **100%** year-on-year to **RMB 2.4 million**, primarily due to increased average bank borrowings driven by funding requirements for new projects[55](index=55&type=chunk) [Income Tax Expense](index=21&type=section&id=4.2.9%20Income%20Tax%20Expense) Income tax expense decreased by **77.5%** year-on-year to **RMB 1.8 million**, primarily due to a significant decline in taxable profit during the reporting period compared to the prior period - Income tax expense decreased by **77.5%** year-on-year to **RMB 1.8 million**, primarily due to a significant decline in taxable profit[56](index=56&type=chunk) [Profit for the Period Attributable to Owners of the Company](index=21&type=section&id=4.2.10%20Profit%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Profit for the period attributable to owners of the Company was **RMB 12.5 million**, a decrease from **RMB 21.3 million** in the prior period, representing the cumulative effect of the aforementioned financial impacts - Profit for the period attributable to owners of the Company was **RMB 12.5 million**, compared to **RMB 21.3 million** in the prior period[57](index=57&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=21&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Capital%20Structure) This section examines the Group's liquidity position, financial resources, and overall capital structure, including borrowings and pledged assets [Liquidity and Financial Resources](index=21&type=section&id=5.1%20Liquidity%20and%20Financial%20Resources) The Group's working capital is primarily funded by operating cash flows, borrowings, and global offering proceeds, with cash and cash equivalents significantly increasing to **RMB 141.1 million** as of June 30, 2025, maintaining sound net current assets and current ratio - The Group's working capital is financed by cash generated from operations, borrowings, and proceeds from the global offering[58](index=58&type=chunk) Liquidity Indicators (As at June 30, 2025) | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 141.1 | 50.8 | +177.8% | | Net current assets | 326.3 | 313.6 | +4.0% | | Current ratio | 2.1 | 2.3 | -8.7% | | Bank borrowings | 179.9 | 122.0 | +47.5% | - The Group has not adopted any financial instruments for hedging, but management closely monitors foreign exchange risk and maintains a sound liquidity position[59](index=59&type=chunk) [Trade Receivables Management](index=22&type=section&id=5.2%20Trade%20Receivables%20Management) Total trade receivables amounted to **RMB 312.1 million**, with digital marketing services accounting for the largest portion; trade receivables turnover days increased to **7.84 days**, and the company will enhance settlement monitoring for longer credit period transactions and regularly assess customer credit limits - Trade receivables primarily include mobile top-up services (**RMB 103.7 million**), digital marketing services (**RMB 201.6 million**), and telecommunication equipment business (**RMB 8.4 million**)[60](index=60&type=chunk) - Trade receivables turnover days increased from **5.96 days** as at December 31, 2024, to **7.84 days** as at June 30, 2025[61](index=61&type=chunk) - The Company will continue to monitor credit risk, regularly review customer settlement status based on counterparty track records and financial conditions, and annually assess credit limits[61](index=61&type=chunk) [Gearing Ratio](index=22&type=section&id=5.3%20Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio (bank borrowings divided by total equity at period-end) increased to **56.1%** from **39.5%** as of December 31, 2024 Gearing Ratio | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 56.1% | 39.5% | [Capital Expenditure and Material Investments](index=22&type=section&id=5.4%20Capital%20Expenditure%20and%20Material%20Investments) Capital expenditure for the period significantly decreased to **RMB 0.1 million**, primarily for replacing computers and office equipment in daily operations, and the Group holds no material investments nor has any contracted but unprovided capital commitments - For the six months ended June 30, 2025, capital expenditure was approximately **RMB 0.1 million**, a significant decrease from **RMB 0.9 million** in the prior period[63](index=63&type=chunk) - The Group did not hold any material investments, nor did it have any contracted but unprovided capital commitments[64](index=64&type=chunk)[65](index=65&type=chunk) [Foreign Exchange Risk and Pledged Assets](index=23&type=section&id=5.5%20Foreign%20Exchange%20Risk%20and%20Pledged%20Assets) The Group's primary transactions are denominated in RMB, but global offering proceeds are in HKD, exposing it to foreign exchange risk; as of June 30, 2025, **RMB 135.5 million** in bank borrowings were secured by trade receivables and bank deposits - The Group's reporting currency is RMB, but the net proceeds from the global offering are denominated in HKD, exposing it to foreign exchange risk[66](index=66&type=chunk) - As of June 30, 2025, bank borrowings of **RMB 135.5 million** were secured by certain of the Group's trade receivables and bank deposits[67](index=67&type=chunk) [Contingent Liabilities and Guarantees](index=23&type=section&id=5.6%20Contingent%20Liabilities%20and%20Guarantees) As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or litigation - As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or any litigation[68](index=68&type=chunk) [Other Significant Matters](index=23&type=section&id=Other%20Significant%20Matters) This section covers additional important information including employee policies, post-reporting period events, securities transactions, corporate governance, use of IPO proceeds, and share schemes [Employees and Remuneration Policy](index=24&type=section&id=6.1%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **170** full-time employees with total staff costs of **RMB 24.0 million**, committed to offering competitive remuneration based on performance, qualifications, experience, and market levels, alongside training opportunities Employee Information and Costs | Item | June 30, 2025 | December 31, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Number of full-time employees | 170 | 156 | +8.97% | | Total staff costs (RMB millions) | 24.0 | 19.3 | +24.35% | - The Group is committed to providing competitive remuneration to its employees, determined based on individual performance, qualifications, experience, and market salary levels[72](index=72&type=chunk) [Events After Reporting Period](index=24&type=section&id=6.2%20Events%20After%20Reporting%20Period) As of the date of this announcement, no material events affecting the Group have occurred after the reporting period - As of the date of this announcement, there have been no material events after the reporting period that could affect the Group[73](index=73&type=chunk) [Securities Transactions](index=24&type=section&id=6.3%20Securities%20Transactions) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no 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[74](index=74&type=chunk) - As at June 30, 2025, the Company did not hold any treasury shares[75](index=75&type=chunk) [Corporate Governance](index=24&type=section&id=6.4%20Corporate%20Governance) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules and complied with all applicable provisions of the Corporate Governance Code in Appendix C1, with the Audit Committee having reviewed the unaudited consolidated interim results for the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and the Directors have confirmed compliance[76](index=76&type=chunk) - The Company has complied with all applicable provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[77](index=77&type=chunk) - The Audit Committee has reviewed the Company's unaudited consolidated interim results for the six months ended June 30, 2025[78](index=78&type=chunk) [Use of Proceeds from Global Offering](index=25&type=section&id=6.5%20Use%20of%20Proceeds%20from%20Global%20Offering) The Company's net proceeds from the global offering were approximately **HKD 52.0 million**, with an unutilized amount of approximately **HKD 2.4 million** as of June 30, 2025, primarily allocated for potential business and asset acquisitions or strategic alliances, expected to be fully utilized in 2025 - Net proceeds from the global offering (after exercise of the over-allotment option) were approximately **HKD 52.0 million**[79](index=79&type=chunk) Use of IPO Proceeds (As at June 30, 2025) | Intended Use | Net Proceeds per Prospectus (approx. HKD millions) | Net Proceeds after Over-allotment Option (approx. HKD millions) | Unutilized Balance as at January 1, 2025 (approx. HKD millions) | Amount Utilized in H1 2025 (approx. HKD millions) | Unutilized Balance as at June 30, 2025 (approx. HKD millions) | | :--- | :--- | :--- | :--- | :--- | :--- | | Strengthening internet marketing activities and online advertising | 15.7 | 10.4 | – | – | – | | Upgrading hardware and network infrastructure | 15.7 | 10.4 | – | – | – | | Software and R&D work | 11.8 | 7.8 | – | – | – | | Purchasing mobile top-up amounts | 15.7 | 10.4 | – | – | – | | Potential business and asset acquisitions or strategic alliances | 11.8 | 7.8 | 2.4 | – | 2.4 | | General working capital and other general corporate purposes | 8.0 | 5.2 | – | – | – | | **Total** | **78.7** | **52.0** | **2.4** | **–** | **2.4** | - As of June 30, 2025, the unutilized net proceeds amounted to approximately **HKD 2.4 million**, expected to be fully utilized in 2025[80](index=80&type=chunk) [Share Option and Share Award Schemes](index=26&type=section&id=6.6%20Share%20Option%20and%20Share%20Award%20Schemes) The Company adopted new share option and share award schemes on October 30, 2024, terminating the 2015 scheme, with no share options or awards granted under the new schemes as of June 30, 2025 - The Company adopted a new share option scheme ("2024 Share Option Scheme") and a share award scheme ("2024 Share Award Scheme") on October 30, 2024[81](index=81&type=chunk)[82](index=82&type=chunk) - As of June 30, 2025, no share options or share awards were granted, exercised, lapsed, or cancelled under the 2024 Share Option Scheme and the 2024 Share Award Scheme[81](index=81&type=chunk)[82](index=82&type=chunk) [Publication of Report](index=27&type=section&id=6.7%20Publication%20of%20Report) This interim results announcement has been published on the Stock Exchange and the Company's websites, and the interim report will be published in due course - This interim results announcement has been published on the Stock Exchange website (www.hkexnews.hk) and the Company's website (www.ysdf.com.cn)[83](index=83&type=chunk) - The Company's 2025 interim report will also be published on the Stock Exchange and the Company's website in due course[83](index=83&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。 Quanzhou Huixin Micro-credit Co., Ltd.* 泉 州 匯 鑫 小 額 貸 款 股 份 有 限 公 司 （ 於中華人民共和國成立的有限公司） （股份代號：1577） 截至2025年6月30日止六個月的 中期業績公告 泉州匯鑫小額貸款股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈，本公司 及其附屬公司（「本集團」、「我們」或「我們的」）截至2025年6月30日止六個月（「報告期間」） 根據香港會計師公會頒佈的香港財務報告準則（「香港財務報告準則」）編製的未經審核中期 業績（「中期業績」），連同2024年同期的比較數字。董事會及本公司審計委員會（「審計委員 會 」）已 審 閱 並 確 認 中 期 業 績 。 除 另 行 指 明 者 外 ， 本 公 告 所 載 全 部 金 額 均 以 人 民 幣（「 人 民 幣」）為單位。 – 1 – 中期業績 | | | ...

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's financial performance and position for the period, highlighting key changes in income, expenses, assets, and liabilities [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, Shun Long Holdings Limited experienced a significant revenue decline and a shift from profit to loss, with a notable increase in loss per share, reflecting a deteriorating operating environment Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (HK$ thousand) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 88,956 | 129,126 | | Cost of sales | (67,395) | (99,876) | | Gross profit | 21,561 | 29,250 | | Other operating income | 1,340 | 2,970 | | Selling and distribution expenses | (26) | (95) | | Administrative expenses | (31,825) | (27,857) | | Finance costs | (5,116) | (3,847) | | (Loss) Profit before tax | (14,066) | 421 | | Income tax expense | (544) | (1,180) | | Loss for the period | (14,610) | (759) | | Loss per share (HK cents) | (0.28) | (0.01) | - Revenue for the period decreased by **31.1%** year-on-year, from HK$129,126 thousand to **HK$88,956 thousand**[3](index=3&type=chunk) - The company shifted from a profit before tax of HK$421 thousand in the prior year to a **loss before tax of HK$14,066 thousand** in the current period[3](index=3&type=chunk) - Loss for the period attributable to owners of the Company significantly increased from HK$759 thousand to **HK$14,610 thousand**, with basic and diluted loss per share rising from HK$0.01 cents to **HK$0.28 cents**[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets decreased, with a reduction in net current assets and cash balances, while liquidity ratios remained reasonable Condensed Consolidated Statement of Financial Position Summary (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current assets | 223,300 | 228,647 | | Current assets | 156,162 | 171,325 | | Current liabilities | 99,955 | 108,501 | | Net current assets | 56,207 | 62,824 | | Total assets less current liabilities | 279,507 | 291,471 | | Non-current liabilities | 66,505 | 63,859 | | Net assets | 213,002 | 227,612 | | Bank balances and cash | 109,525 | 116,008 | | Trade and other payables | 70,622 | 50,984 | - Total assets decreased from **HK$399,972 thousand** as of December 31, 2024, to **HK$379,462 thousand** as of June 30, 2025[12](index=12&type=chunk) - Net assets decreased from HK$227,612 thousand to **HK$213,002 thousand**[6](index=6&type=chunk) - Net current assets decreased from HK$62,824 thousand to **HK$56,207 thousand**, and bank balances and cash decreased from HK$116,008 thousand to **HK$109,525 thousand**[5](index=5&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the accounting policies and specific financial information supporting the condensed consolidated financial statements [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial information is prepared in accordance with Appendix 16 of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting" - The financial information complies with the requirements of Appendix 16 of the Hong Kong Listing Rules and HKAS 34 "Interim Financial Reporting"[7](index=7&type=chunk) [Principal Accounting Policies](index=5&type=section&id=Principal%20Accounting%20Policies) The condensed consolidated financial information is primarily prepared on a historical cost basis, with new HKFRS amendments applied, though without significant impact on current financial performance - Financial information is prepared on a historical cost basis, except for leasehold land and buildings which are measured at revalued amounts[8](index=8&type=chunk) - The first-time application of HKAS 21 (Amendment) "Lack of Exchangeability" had no significant impact on the financial performance and position for the current period[8](index=8&type=chunk) [Revenue](index=6&type=section&id=Revenue) The Group's revenue primarily represents income generated from the sale of goods during the period - Revenue is defined as income generated from the sale of goods[9](index=9&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The Group operates three reportable segments: golf equipment, golf bags, and hotel, with golf equipment revenue significantly declining and the hotel business still generating no revenue - The Group has three reportable operating segments: golf equipment, golf bags, and hotel[10](index=10&type=chunk) [Segment Revenue and Results](index=6&type=section&id=Segment%20Revenue%20and%20Results) Both golf equipment segment revenue and results significantly decreased, golf bag segment revenue slightly increased but recorded a loss, and the hotel segment generated no revenue Segment Revenue and Results Summary (HK$ thousand) | Segment | 2025 Revenue | 2024 Revenue | 2025 Results | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Golf equipment | 79,318 | 119,673 | 763 | 11,536 | | Golf bags | 9,638 | 9,453 | (1,000) | (631) | | Hotel | – | – | (2,833) | (2,863) | | Consolidated Revenue | 88,956 | 129,126 | | | | (Loss) Profit before tax | | | (14,066) | 421 | - Golf equipment segment revenue decreased by **33.7%** year-on-year to **HK$79,318 thousand**, and segment profit significantly dropped from HK$11,536 thousand to **HK$763 thousand**[11](index=11&type=chunk) - Golf bag segment revenue slightly increased by **2.0%** to **HK$9,638 thousand**, but segment loss expanded from HK$631 thousand to **HK$1,000 thousand**[11](index=11&type=chunk) - The hotel segment generated no revenue in both reporting periods and continued to record losses[11](index=11&type=chunk) [Segment Assets and Liabilities](index=7&type=section&id=Segment%20Assets%20and%20Liabilities) Segment assets and liabilities varied, with golf equipment segment assets and liabilities decreasing, and a new amount payable to former directors added to unallocated corporate liabilities Segment Assets and Liabilities Summary (HK$ thousand) | Segment | June 30, 2025 Assets | December 31, 2024 Assets | June 30, 2025 Liabilities | December 31, 2024 Liabilities | | :--- | :--- | :--- | :--- | :--- | | Golf equipment | 111,105 | 120,789 | 30,731 | 40,068 | | Golf bags | 2,114 | 3,155 | 1,032 | 1,161 | | Hotel | 152,631 | 155,417 | 7,515 | 7,515 | | Total Consolidated Assets | 379,462 | 399,972 | | | | Total Consolidated Liabilities | | | 166,460 | 172,360 | - Golf equipment segment assets decreased from HK$120,789 thousand to **HK$111,105 thousand**, and liabilities decreased from HK$40,068 thousand to **HK$30,731 thousand**[12](index=12&type=chunk) - A new amount of **HK$30,580 thousand** payable to former directors was added to unallocated corporate liabilities[12](index=12&type=chunk) [Other Operating Income](index=8&type=section&id=Other%20Operating%20Income) Other operating income for the period significantly decreased year-on-year, primarily due to the absence of net exchange gains and a decline in interest income Other Operating Income Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest income | 851 | 1,175 | | Net exchange gain | – | 1,139 | | Total | 1,340 | 2,970 | - Other operating income decreased from HK$2,970 thousand to **HK$1,340 thousand**, mainly due to the absence of a net exchange gain of HK$1,139 thousand recorded in the prior year period[13](index=13&type=chunk) [Finance Costs](index=8&type=section&id=Finance%20Costs) Finance costs for the period increased year-on-year, mainly driven by a significant rise in interest expenses on amounts payable to former directors Finance Costs Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest on amounts payable to former directors | 1,448 | 255 | | Interest on convertible bonds | 2,706 | 2,494 | | Interest on bank borrowings | 950 | 1,083 | | Total | 5,116 | 3,847 | - Finance costs increased by **33%** from HK$3,847 thousand to **HK$5,116 thousand**[14](index=14&type=chunk) - Interest expense on amounts payable to former directors significantly increased from HK$255 thousand to **HK$1,448 thousand**[14](index=14&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) Income tax expense for the period primarily arose from PRC corporate income tax, with no provision for Hong Kong profits tax due to no assessable profits, and no tax provision for the Commonwealth of Northern Mariana Islands Income Tax Expense Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Hong Kong profits tax | – | 150 | | PRC corporate income tax | 544 | 1,017 | | Total | 544 | 1,180 | - No provision for Hong Kong profits tax was made for the current period due to no assessable profits or offset by tax losses[17](index=17&type=chunk) - The corporate income tax rate for PRC subsidiaries is **25%**[17](index=17&type=chunk) - No corporate income tax provision was made for the Commonwealth of Northern Mariana Islands due to no income[17](index=17&type=chunk) [Loss Before Tax](index=9&type=section&id=Loss%20Before%20Tax) The loss before tax for the period was primarily influenced by inventory recognized as expenses, depreciation charges, and net exchange losses Loss Before Tax Adjustment Items Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Amount of inventories recognized as expense | 67,395 | 99,876 | | Depreciation of property, plant and equipment | 2,627 | 1,737 | | Depreciation of right-of-use assets | 2,966 | 3,031 | | Net exchange loss (gain) | 490 | (1,139) | - A net exchange loss of **HK$490 thousand** was recorded in the current period, compared to a net exchange gain of HK$1,139 thousand in the prior year period[16](index=16&type=chunk) [Dividends](index=10&type=section&id=Dividends) The Board of Directors decided not to declare any dividends for the current period - No dividends were paid, declared, or proposed during the period[18](index=18&type=chunk) [Loss Per Share](index=10&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for the period was HK$0.28 cents, a significant increase from HK$0.01 cents in the prior year, reflecting an expanded loss Loss Per Share Calculation Summary | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HK$ thousand) | (14,610) | (759) | | Number of ordinary shares (thousand shares) | 5,201,250 | 5,201,250 | | Basic and diluted loss per share (HK cents) | (0.28) | (0.01) | - Unexercised convertible bonds were not assumed to be converted when calculating diluted loss per share, as they would reduce the loss per share[21](index=21&type=chunk) [Trade and Other Receivables](index=11&type=section&id=Trade%20and%20Other%20Receivables) The Group's total trade and other receivables decreased, with credit terms typically 30 to 60 days and overdue balances regularly reviewed Trade and Other Receivables Summary (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 29,182 | 30,731 | | Deposits and other receivables | 2,714 | 2,971 | | Prepayments | 2,427 | 2,768 | | Prepayments to suppliers | 76 | 111 | | Total | 34,399 | 36,581 | Ageing Analysis of Trade Receivables (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 20,662 | 24,876 | | 31 to 90 days | 8,520 | 5,586 | | 91 to 180 days | – | 269 | | Total | 29,182 | 30,731 | - Total trade receivables decreased from HK$30,731 thousand to **HK$29,182 thousand**[22](index=22&type=chunk) [Trade and Other Payables](index=11&type=section&id=Trade%20and%20Other%20Payables) The Group's total trade and other payables significantly increased, mainly due to the addition of amounts payable to former directors, with credit terms generally ranging from 30 to 90 days Trade and Other Payables Summary (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 16,223 | 23,991 | | Contract liabilities | 597 | 553 | | Accruals and other payables | 23,222 | 26,440 | | Amounts payable to former directors | 30,580 | – | | Total | 70,622 | 50,984 | Ageing Analysis of Trade Payables (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 90 days | 13,681 | 20,453 | | 91 to 180 days | 651 | 1,723 | | 181 to 365 days | 144 | 103 | | Over 365 days | 1,747 | 1,712 | | Total | 16,223 | 23,991 | - Total trade and other payables increased from HK$50,984 thousand to **HK$70,622 thousand**, primarily due to the addition of **HK$30,580 thousand** in amounts payable to former directors[22](index=22&type=chunk) [Share Capital](index=12&type=section&id=Share%20Capital) The company's authorized and issued share capital remained unchanged during the reporting period Share Capital Summary | Item | Number of Shares (thousand shares) | Share Capital (HK$ thousand) | | :--- | :--- | :--- | | Authorized share capital (par value HK$0.01 per share) | 10,000,000 | | | Issued and fully paid share capital (par value HK$0.01 per share) | 5,201,250 | 52,013 | - Authorized and issued share capital remained unchanged during the reporting period[24](index=24&type=chunk) [Events After the Reporting Period](index=12&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of the interim results announcement, the Group had no significant events after the reporting period - No significant events occurred from June 30, 2025, up to the date of the interim results announcement[25](index=25&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's financial performance, business operations, and future outlook, including strategies to address market challenges [Financial Results and Business Review](index=13&type=section&id=Financial%20Results%20and%20Business%20Review) Affected by high US tariffs, the Group's sales significantly declined in the first half of 2025, leading to substantial losses, with measures taken to streamline operations and optimize costs - High US tariffs on Chinese export products (initially **145%**, later temporarily reduced to **30%**) adversely impacted the Group's business[26](index=26&type=chunk) - Major customers shifted orders or suspended shipments, leading to a significant decline in sales and a substantial loss for the period[26](index=26&type=chunk) - The Group's revenue was approximately **HK$88,956 thousand** (a **31.1%** year-on-year decrease), and loss for the period attributable to owners of the Company increased to approximately **HK$14,610 thousand**[27](index=27&type=chunk) [Golf Equipment Business](index=13&type=section&id=Golf%20Equipment%20Business) As the primary revenue source, the golf equipment business experienced significant declines in both revenue and segment profit due to high US tariffs, with the Group implementing cost optimization and supply chain expansion, maintaining a cautious outlook for the second half - Golf equipment business revenue plummeted by approximately **33.7%** to **HK$79,318 thousand**, accounting for approximately **89.2%** of the Group's revenue[28](index=28&type=chunk) - Sales to the largest segment customer fell by approximately **26.9%**, and revenue from the top five segment customers decreased by approximately **33.9%**[29](index=29&type=chunk) - Segment profit significantly dropped to approximately **HK$763 thousand** (from HK$11,536 thousand in the prior year period)[30](index=30&type=chunk) - The Group is implementing rationalization measures at its Shandong production facility to enhance production efficiency, reduce manufacturing costs, and expand its supply chain[30](index=30&type=chunk) [Golf Bag Business](index=14&type=section&id=Golf%20Bag%20Business) The golf bag segment transitioned to a trading business model, showing slight revenue growth but still incurring losses, facing intense competition and market pressure, with a cautious outlook for the second half - The golf bag segment has transitioned to a trading business model, with production outsourced to external factories[31](index=31&type=chunk) - Segment revenue slightly increased by approximately **2.0%** to **HK$9,638 thousand**, accounting for approximately **10.8%** of the Group's revenue[31](index=31&type=chunk) - Sales to the largest segment customer surged by approximately **81.9%**, but some customers shifted to non-Chinese suppliers[32](index=32&type=chunk) - The segment recorded a loss of approximately **HK$1,000 thousand** (compared to HK$631 thousand in the prior year period)[33](index=33&type=chunk) [Hotel Business](index=15&type=section&id=Hotel%20Business) The hotel development plan in the Commonwealth of Northern Mariana Islands was delayed due to local construction worker shortages and uncertain visa quotas, generating no revenue in the current period - The hotel development plan was delayed due to a shortage of local construction workers and uncertainty regarding overseas work visa quotas[34](index=34&type=chunk) - The hotel business generated no revenue during the current period[35](index=35&type=chunk) [Outlook](index=16&type=section&id=Outlook) Facing high US tariff challenges, the Group is actively seeking to establish manufacturing bases outside China to retain customer business, continuing to streamline operations and optimize costs, while maintaining a cautious outlook for golf businesses and monitoring hotel development - High US tariff policies adversely impact business, requiring the Group to promptly establish or acquire manufacturing bases outside China[36](index=36&type=chunk) - The Group is actively seeking opportunities to acquire golf equipment factories outside China[36](index=36&type=chunk) - The Group has implemented stringent measures to rationalize operations and optimize costs, and is committed to strengthening diversified marketing initiatives through value-added services[36](index=36&type=chunk) - Management maintains a cautious outlook for the golf business in the foreseeable future, and while the hotel development plan is currently delayed, it will continue to be monitored[36](index=36&type=chunk) [Dividends](index=16&type=section&id=Dividends) The Board of Directors does not recommend the payment of any dividends for the current period - The Board of Directors does not recommend the payment of any dividends for the six months ended June 30, 2025[38](index=38&type=chunk) [Financial Resources, Liquidity and Gearing Ratio](index=17&type=section&id=Financial%20Resources%2C%20Liquidity%20and%20Gearing%20Ratio) The Group's cash and bank balances decreased, interest-bearing borrowings declined, but amounts payable to former directors increased, leading to a higher gearing ratio, while liquidity ratios remained reasonable and robust Financial Resources and Liquidity Indicators Summary (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank balances and cash | 109,525 | 116,008 | | Bank borrowings | 28,723 | 56,383 | | Amounts payable to former directors | 30,580 | – | | Gearing ratio | 7.4% | 1.6% | | Current ratio | 1.56 | 1.58 | | Quick ratio | 1.44 | 1.41 | - Bank balances and cash decreased from HK$116,008 thousand to **HK$109,525 thousand**[39](index=39&type=chunk) - Bank borrowings decreased from HK$56,383 thousand to **HK$28,723 thousand**, but new amounts payable to former directors of **HK$30,580 thousand** were added[39](index=39&type=chunk) - The gearing ratio increased from **1.6%** to **7.4%**[40](index=40&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=17&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[41](index=41&type=chunk) [Pledge of Assets](index=17&type=section&id=Pledge%20of%20Assets) The Group's bank borrowings are secured by property, plant and equipment, and right-of-use assets - Bank borrowings of approximately **HK$28,723 thousand** are secured by property, plant and equipment and right-of-use assets with a carrying value of approximately **HK$62,250 thousand**[42](index=42&type=chunk) [Foreign Exchange Risk](index=18&type=section&id=Foreign%20Exchange%20Risk) The Group primarily faces exchange rate fluctuation risks between RMB, HKD, and USD, but did not enter into any derivative contracts for hedging during the period - The Group primarily faces exchange rate fluctuation risks between Renminbi, Hong Kong Dollars, and US Dollars[43](index=43&type=chunk) - No derivative contracts were entered into during the period to hedge foreign exchange risk[43](index=43&type=chunk) [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of the end of the reporting period, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025[44](index=44&type=chunk) [Events After the Reporting Period](index=18&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of the interim results announcement, the Group had no significant events after the reporting period - No significant events occurred from June 30, 2025, up to the date of the interim results announcement[45](index=45&type=chunk) [Capital Commitments](index=18&type=section&id=Capital%20Commitments) As of the end of the reporting period, the Group had contracted but unprovided capital commitments for plant and equipment - As of June 30, 2025, the Group had contracted but unprovided capital commitments for plant and equipment of approximately **HK$72 thousand**[46](index=46&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's employee count decreased, and it maintains a competitive remuneration package and performance-based incentive policy - As of June 30, 2025, the Group employed approximately **530 employees** (compared to 680 employees in the prior year period)[47](index=47&type=chunk) - Remuneration is determined based on duties, experience, performance, and market practices, with discretionary bonuses distributed[47](index=47&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - 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[48](index=48&type=chunk) [Corporate Governance](index=19&type=section&id=Corporate%20Governance) This section outlines the Company's adherence to corporate governance principles and practices, including board structure and oversight [Corporate Governance Code](index=19&type=section&id=Corporate%20Governance%20Code) The Company complies with the Corporate Governance Code, though the roles of Chairman and Chief Executive are combined, which the Board believes provides strong leadership - The Company complies with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[49](index=49&type=chunk) - The roles of Chairman and Chief Executive are combined and held by Mr. Wong Hin Shing, deviating from code provision C.2.1[49](index=49&type=chunk) - The Board believes this arrangement provides strong and consistent leadership for the Company, enabling effective and efficient planning and implementation[49](index=49&type=chunk) [Standard Code for Securities Transactions by Directors](index=19&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors confirmed compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers throughout the period - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules[50](index=50&type=chunk) - All directors confirmed compliance with the Standard Code for the six months ended June 30, 2025[50](index=50&type=chunk) [Audit Committee](index=19&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting policies, internal controls, and interim financial information - The Audit Committee comprises three independent non-executive directors[51](index=51&type=chunk) - The Audit Committee has reviewed the accounting policies and practices adopted by the Group and discussed auditing, internal controls, and financial reporting matters, including the condensed consolidated financial information for the period[51](index=51&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) This section includes details on the publication of interim results, acknowledgements, and the current composition of the Board of Directors [Publication of Interim Results Announcement and Interim Report](index=19&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the HKEX and the Company's website, with the interim report to be provided to shareholders in due course - This results announcement is published on the website of The Stock Exchange of Hong Kong Limited and the Company's website[52](index=52&type=chunk) - The interim report will be made available to shareholders and dispatched to shareholders in due course, and will also be published on the HKEX website and the Company's website[52](index=52&type=chunk) [Acknowledgement](index=20&type=section&id=Acknowledgement) The Chairman of the Board extends gratitude to all employees, shareholders, customers, suppliers, and business partners on behalf of the Board - Mr. Wong Hin Shing, the Chairman of the Board, on behalf of the Board, extends gratitude to all employees, shareholders, customers, suppliers, and business partners of the Group[53](index=53&type=chunk) [Board Composition](index=20&type=section&id=Board%20Composition) As of the announcement date, the Board of Directors comprises one executive director, one non-executive director, and three independent non-executive directors - As of the date of this announcement, the Board comprises Mr. Wong Hin Shing (Executive Director), Mr. Choi Sum Shing (Non-executive Director), and Mr. Sheng Baojun, Mr. Ho Kwong Yu, and Ms. Lin Lin (Independent Non-executive Directors)[53](index=53&type=chunk)

Company Information [GEM Listing Rules Statement](index=2&type=section&id=GEM%20Listing%20Rules%20Statement) This section clarifies the company's GEM listing, emphasizing its role as an SME financing platform, and notes the Stock Exchange and SFC disclaim responsibility for report accuracy - GEM is a market providing listing channels for small and medium-sized enterprises, characterized by potentially **higher investment risks**[4](index=4&type=chunk) - The Stock Exchange and SFC are not responsible for the content of this report, do not guarantee its accuracy or completeness, and explicitly state it does not constitute a recommendation for any securities[4](index=4&type=chunk) [Report Identification Information](index=1&type=section&id=Report%20Identification%20Information) This section identifies the report type and year, specifically the 2025 interim report - This is the 2025 interim report for Ronghe Tour Cultural Holding Limited[1](index=1&type=chunk)[3](index=3&type=chunk) [Company Details](index=4&type=section&id=Company%20Details) This section provides the company's basic registration and operational information, including registered name, place of incorporation, principal place of business, company secretary, auditor, and listing date - The company's registered name is Ronghe Tour Cultural Holding Limited, incorporated in the Cayman Islands[1](index=1&type=chunk)[7](index=7&type=chunk) - The company's principal place of business is in Lockhart Road, Wan Chai, Hong Kong, with Appleby Global Services (Cayman) Limited as company secretary[6](index=6&type=chunk)[7](index=7&type=chunk) - The company's auditor is ZHONGHUI ANDA CPA Limited, and it was listed on GEM on November 12, 2018[8](index=8&type=chunk)[13](index=13&type=chunk) Financial Statements [Consolidated Statement of Comprehensive Income](index=6&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents the company's consolidated comprehensive income for the six months ended June 30, 2025, and the corresponding period in 2024, covering key financial metrics such as revenue, cost, gross profit, and profit for the period - The consolidated statement of comprehensive income covers the six months ended June 30, 2025, and the corresponding period in 2024[9](index=9&type=chunk) Consolidated Statement of Comprehensive Income Key Items (Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | [Amount] | [Amount] | | Cost of sales | [Amount] | [Amount] | | Gross profit | [Amount] | [Amount] | | Other income | [Amount] | [Amount] | | Administrative expenses | [Amount] | [Amount] | | Income tax expense | [Amount] | [Amount] | | Profit (loss) for the period | [Amount] | [Amount] | [Consolidated Statement of Financial Position](index=7&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement presents the company's consolidated financial position as of June 30, 2025, and December 31, 2024, including the main components of assets, liabilities, and equity - The consolidated statement of financial position reports dates as of June 30, 2025, and December 31, 2024[10](index=10&type=chunk) Consolidated Statement of Financial Position Key Items (As of Report Date) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Assets | [Amount] | [Amount] | | Liabilities | [Amount] | [Amount] | | Share capital | [Amount] | [Amount] | | Retained earnings | [Amount] | [Amount] | | Total equity | [Amount] | [Amount] | [Consolidated Statement of Changes in Equity](index=8&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the company's consolidated changes in equity for the six months ended June 30, 2025, and the corresponding period in 2024, including opening balances, changes during the period, and closing balances of share capital, reserves, and retained earnings - The consolidated statement of changes in equity covers the six months ended June 30, 2025, and the corresponding period in 2024[11](index=11&type=chunk) Consolidated Statement of Changes in Equity Key Items (Six Months Ended June 30) | Metric | Share Capital (RMB thousands) | Reserves (RMB thousands) | Retained Earnings (RMB thousands) | Total Equity (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2024 | [Amount] | [Amount] | [Amount] | [Amount] | | Profit (loss) for the period | - | - | [Amount] | [Amount] | | Other comprehensive income | - | [Amount] | - | [Amount] | | Balance at June 30, 2024 | [Amount] | [Amount] | [Amount] | [Amount] | | Balance at January 1, 2025 | [Amount] | [Amount] | [Amount] | [Amount] | | Profit (loss) for the period | - | - | [Amount] | [Amount] | | Other comprehensive income | - | [Amount] | - | [Amount] | | Balance at June 30, 2025 | [Amount] | [Amount] | [Amount] | [Amount] | [Consolidated Statement of Cash Flows](index=9&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the company's cash flows for the six months ended June 30, 2025, and the corresponding period in 2024, categorized into operating, investing, and financing activities - The consolidated statement of cash flows covers the six months ended June 30, 2025, and the corresponding period in 2024[12](index=12&type=chunk) Consolidated Statement of Cash Flows Key Items (Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash from operating activities | [Amount] | [Amount] | | Net cash from investing activities | [Amount] | [Amount] | | Net cash from financing activities | [Amount] | [Amount] | | Net change in cash and cash equivalents | [Amount] | [Amount] | | Cash and cash equivalents at beginning of period | [Amount] | [Amount] | | Cash and cash equivalents at end of period | [Amount] | [Amount] | Notes to the Consolidated Financial Statements [General Information and Basis of Presentation](index=10&type=section&id=General%20Information%20and%20Basis%20of%20Presentation) This section introduces the company's registration information, listing status, principal business activities, and the basis for preparing the interim financial statements, adhering to GEM Listing Rules and Hong Kong Accounting Standards - The company was incorporated in the Cayman Islands on April 13, 2018, and listed on GEM on November 12, 2018[13](index=13&type=chunk) - The company's principal business is investment holding, providing asset management and investment advisory services through its subsidiaries[13](index=13&type=chunk) - The interim financial statements are prepared in accordance with the GEM Listing Rules and Hong Kong Accounting Standards issued by the Hong Kong Institute of Certified Public Accountants[13](index=13&type=chunk) [Significant Accounting Policies and Estimates](index=10&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section outlines the accounting policies and estimation methods adopted in preparing the interim financial statements, noting their consistency with annual financial statements and the adoption of new standards - The accounting policies and estimation methods adopted in these interim financial statements are consistent with those used in the 2024 annual financial statements[13](index=13&type=chunk) - New or revised Hong Kong Financial Reporting Standards have been adopted but have not had a significant impact on these financial statements[13](index=13&type=chunk) [Revenue and Other Income](index=11&type=section&id=Revenue%20and%20Other%20Income) This section details the company's revenue sources for the reporting period, primarily asset management and investment advisory services, along with the composition of other income - The company's revenue primarily derives from asset management and investment advisory services[14](index=14&type=chunk) Revenue and Other Income (Six Months Ended June 30) | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Asset management service fees | [Amount] | [Amount] | | Investment advisory service fees | [Amount] | [Amount] | | Other income | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | [Segment Information](index=11&type=section&id=Segment%20Information) This section states that the company has only one reportable operating segment during the reporting period, which is the provision of asset management and investment advisory services - The company has only one operating segment, which is the provision of asset management and investment advisory services[15](index=15&type=chunk) [Profit (Loss) for the Period](index=12&type=section&id=Profit%20(Loss)%20for%20the%20Period) This section provides a detailed breakdown of the company's profit (loss) for the reporting period, including various income and expense items - Components of profit (loss) for the period include cost of sales, administrative expenses, finance costs, and other items[16](index=16&type=chunk) Profit (Loss) for the Period Components (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of sales | [Amount] | [Amount] | | Administrative expenses | [Amount] | [Amount] | | Finance costs | [Amount] | [Amount] | | Other operating expenses | [Amount] | [Amount] | | Income tax expense | [Amount] | [Amount] | | **Profit (Loss) for the period** | **[Amount]** | **[Amount]** | [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) This section details the company's income tax expense for the reporting period, including Hong Kong profits tax and deferred tax, noting no assessable profits were generated - Income tax expense primarily includes Hong Kong profits tax and deferred tax[17](index=17&type=chunk) - No Hong Kong profits tax was provided as the company did not generate assessable profits during the reporting period[17](index=17&type=chunk) Income Tax Expense (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Hong Kong profits tax | [Amount] | [Amount] | | Deferred tax | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | [Earnings (Loss) Per Share](index=13&type=section&id=Earnings%20(Loss)%20Per%20Share) This section explains the calculation of basic and diluted earnings (loss) per share, noting that diluted earnings per share is not presented due to the absence of dilutive potential ordinary shares - Basic earnings (loss) per share is calculated by dividing profit (loss) for the period by the weighted average number of ordinary shares outstanding[19](index=19&type=chunk) - Diluted earnings (loss) per share is not presented as there were no dilutive potential ordinary shares during the reporting period[19](index=19&type=chunk) Earnings (Loss) Per Share Calculation (Six Months Ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit (loss) for the period (RMB thousands) | [Amount] | [Amount] | | Weighted average number of ordinary shares (thousand shares) | [Quantity] | [Quantity] | | **Basic earnings (loss) per share (RMB)** | **[Amount]** | **[Amount]** | [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) This section provides detailed information on trade and other receivables, including their aging analysis and impairment loss - The aging analysis of trade and other receivables shows that most receivables are due within **90 days**[20](index=20&type=chunk) Aging Analysis of Trade and Other Receivables (As of June 30) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 1-30 days | [Amount] | [Amount] | | 31-60 days | [Amount] | [Amount] | | 61-90 days | [Amount] | [Amount] | | Over 90 days | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | - Impairment loss on trade and other receivables changed during the reporting period[29](index=29&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) This section provides detailed information on trade and other payables, including their aging analysis - The aging analysis of trade and other payables shows that most payables are due within **90 days**[21](index=21&type=chunk) Aging Analysis of Trade and Other Payables (As of June 30) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 1-30 days | [Amount] | [Amount] | | 31-60 days | [Amount] | [Amount] | | 61-90 days | [Amount] | [Amount] | | Over 90 days | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | [Borrowings](index=17&type=section&id=Borrowings) This section details the company's borrowings during the reporting period, including the amount, interest rate, and maturity date of unsecured borrowings, noting guarantees from executive directors and management - Unsecured borrowings existed during the reporting period with an annual interest rate of **[Amount]**[22](index=22&type=chunk) - These borrowings are guaranteed by the company's executive directors and management, maturing on [Date] in 2025 and [Date] in 2024[22](index=22&type=chunk) Borrowings (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Unsecured borrowings | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | [Share Capital](index=18&type=section&id=Share%20Capital) This section describes the company's share capital structure, including the number and par value of issued ordinary shares - The company's share capital comprises ordinary shares with a par value of **[Amount] HKD** per share[24](index=24&type=chunk) Changes in Share Capital (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Issued share capital at beginning of period | [Amount] | [Amount] | | New shares issued during the period | [Amount] | [Amount] | | **Issued share capital at end of period** | **[Amount]** | **[Amount]** | [Related Party Transactions (Notes)](index=18&type=section&id=Related%20Party%20Transactions%20(Notes)) This section discloses related party transactions during the reporting period, primarily executive directors' remuneration - During the reporting period, the company paid **[Amount]** in remuneration to executive directors[26](index=26&type=chunk) Related Party Transactions (Six Months Ended June 30) | Related Party | Transaction Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Executive Directors | Remuneration | [Amount] | [Amount] | Management Discussion and Analysis [Business Review and Outlook](index=19&type=section&id=Business%20Review%20and%20Outlook) This section outlines the company's business performance, market challenges, and future development strategies, emphasizing business model optimization and new growth area expansion - The company primarily engages in asset management and investment advisory services, operating in Hong Kong and globally[27](index=27&type=chunk) - During the reporting period, the company recorded a net loss of **[Amount] RMB thousands**, compared to a net profit of **[Amount] RMB thousands** in the prior corresponding period[27](index=27&type=chunk) - The company faces challenges from market volatility and regulatory changes but will continue to optimize its business model and explore new growth areas for long-term growth[27](index=27&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) This section analyzes key financial metrics for the reporting period, explaining changes in revenue, costs, and various expenses [Revenue](index=20&type=section&id=Revenue) Revenue decreased compared to the prior corresponding period, primarily due to reduced business volume in asset management and investment advisory services - Revenue decreased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[28](index=28&type=chunk) [Cost of Sales](index=20&type=section&id=Cost%20of%20Sales) Cost of sales followed the revenue trend, decreasing in the current period with the decline in revenue - Cost of sales decreased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[28](index=28&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased in the current period, mainly due to reduced promotional activities - Selling and distribution expenses decreased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[28](index=28&type=chunk) [Other Operating Expenses](index=20&type=section&id=Other%20Operating%20Expenses) Other operating expenses increased in the current period, primarily due to higher general administrative expenses and legal and professional service fees - Other operating expenses increased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[28](index=28&type=chunk) [Impairment Loss on Trade and Other Receivables](index=21&type=section&id=Impairment%20Loss%20on%20Trade%20and%20Other%20Receivables) Impairment loss on trade and other receivables decreased in the current period, mainly due to the recovery of some impaired receivables - Impairment loss on trade and other receivables decreased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[29](index=29&type=chunk) [Total Comprehensive Income](index=21&type=section&id=Total%20Comprehensive%20Income) Total comprehensive income increased in the current period, primarily benefiting from higher interest income from borrowings - Total comprehensive income increased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[29](index=29&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash position, borrowing levels, and overall liquidity management strategy, emphasizing prudent cash flow management to support business development - As of June 30, 2025, the company's cash and cash equivalents amounted to **[Amount] RMB thousands**[30](index=30&type=chunk) - As of June 30, 2025, the company's total borrowings amounted to **[Amount] RMB thousands**[30](index=30&type=chunk) - The company will continue to prudently manage cash flow to support business development and operational needs[31](index=31&type=chunk) [Share Capital and Share Options](index=23&type=section&id=Share%20Capital%20and%20Share%20Options) This section outlines the company's share capital structure and share option situation, including the number of issued shares and share options, and their exercise prices - As of June 30, 2025, the company's issued share capital amounted to **[Amount] RMB thousands**[32](index=32&type=chunk) - As of June 30, 2025, **[Quantity]** share options were outstanding, with an exercise price of **[Amount] HKD** per option[32](index=32&type=chunk) [Comparison of Business Objectives with Actual Progress](index=24&type=section&id=Comparison%20of%20Business%20Objectives%20with%20Actual%20Progress) This section compares the company's business objectives set at the time of listing with actual progress during the reporting period, analyzing achievement status and influencing factors - The company's business objectives at listing included expanding asset management business and strengthening investment advisory services[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Actual progress shows that the company has completed some business expansion during the reporting period, but some objectives have been slow due to market conditions[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - The company will adjust its strategies based on market conditions to achieve long-term development goals[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Use of Proceeds from Listing](index=27&type=section&id=Use%20of%20Proceeds%20from%20Listing) This section details the actual use of net proceeds from the company's listing, comparing it with the original plan - The net proceeds from the listing amounted to **[Amount] RMB thousands**[37](index=37&type=chunk) - The proceeds were primarily used for expanding asset management business, investment advisory services, and general working capital[37](index=37&type=chunk) Use of Proceeds from Listing (As of June 30) | Purpose | Planned Amount (RMB thousands) | Actual Amount Used (RMB thousands) | Unutilized Balance (RMB thousands) | | :--- | :--- | :--- | :--- | | Expand asset management business | [Amount] | [Amount] | [Amount] | | Strengthen investment advisory services | [Amount] | [Amount] | [Amount] | | General working capital | [Amount] | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | **[Amount]** | Other Information [Directors' and Chief Executive's Interests](index=28&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) This section discloses the interests of the company's directors and chief executive in the shares, underlying shares, and debentures of the company and its associated corporations - As of June 30, 2025, directors and the chief executive held interests in the company's shares[39](index=39&type=chunk) Directors' and Chief Executive's Interests (As of June 30) | Name | Nature of Interest | Number of Shares Held (shares) | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | [Director Name 1] | Beneficial owner | [Quantity] | [Percentage] | | [Director Name 2] | Beneficial owner | [Quantity] | [Percentage] | [Major Shareholders' and Other Persons' Interests](index=29&type=section&id=Major%20Shareholders'%20and%20Other%20Persons'%20Interests) This section discloses the interests of major shareholders, other than directors and the chief executive, in the company's shares and underlying shares - As of June 30, 2025, major shareholders (not directors or chief executive) held interests in the company's shares[40](index=40&type=chunk) Major Shareholders' Interests (As of June 30) | Shareholder Name | Nature of Interest | Number of Shares Held (shares) | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | [Shareholder Name 1] | Beneficial owner | [Quantity] | [Percentage] | | [Shareholder Name 2] | Beneficial owner | [Quantity] | [Percentage] | [Related Party Transactions (Other Information)](index=30&type=section&id=Related%20Party%20Transactions%20(Other%20Information)) This section confirms that, apart from directors' remuneration disclosed in the notes to the financial statements, no other significant related party transactions occurred during the reporting period - For the six months ended June 30, 2025, no other significant related party transactions occurred[41](index=41&type=chunk) [Compliance with Corporate Governance Code](index=30&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) This section states that the company has fully complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules during the reporting period - The company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules[41](index=41&type=chunk) [Changes in Listed Securities](index=31&type=section&id=Changes%20in%20Listed%20Securities) This section confirms that there were no changes in the company's listed securities during the reporting period - As of June 30, 2025, there were no changes in the company's listed securities[42](index=42&type=chunk) [Auditor](index=31&type=section&id=Auditor) This section identifies the company's auditor and states that they have reviewed the interim financial statements - The company's auditor is ZHONGHUI ANDA CPA Limited[42](index=42&type=chunk) - The auditor has reviewed these interim financial statements and confirmed their compliance with relevant accounting standards and listing rules[42](index=42&type=chunk) [Board of Directors](index=31&type=section&id=Board%20of%20Directors) This section lists the members of the company's Board of Directors - The Board of Directors includes executive directors [Name] and [Name][43](index=43&type=chunk)

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group's total revenue for the six months ended June 30, 2025, was RMB 87.28 billion, a 10.8% year-on-year decrease, with profit attributable to owners of the parent at RMB 661.2 million, down 8.2% year-on-year, primarily due to a shift from profit to loss in the Happiness segment despite growth in Health and Wealth segments Financial Performance (RMB million) | For the six months ended June 30 | 2025 | 2024 | | :--- | :--- | :--- | | **Total Revenue** | 87,283.1 | 97,838.4 | | Health | 22,565.2 | 23,260.5 | | Happiness | 33,721.4 | 43,172.1 | | Wealth | 27,828.3 | 26,947.3 | | Intelligent Manufacturing | 4,021.3 | 5,331.6 | | **Profit/(Loss) attributable to owners of the parent** | 661.2 | 720.1 | | Health | 755.8 | 509.7 | | Happiness | (434.6) | 164.3 | | Wealth | 243.1 | 26.8 | | Intelligent Manufacturing | 137.8 | 45.1 | | **Earnings per share - Basic (RMB)** | 0.08 | 0.09 | [Business Overview](index=2&type=section&id=Business%20Overview) Facing macroeconomic challenges in H1 2025, the Group steadfastly executed its "Lean and Fit" strategy, focusing on core industries of healthcare, consumer, and insurance, while strengthening its business foundation through technological innovation and global expansion, resulting in increased overseas revenue contribution, significant R&D investment, and optimized asset portfolio with reduced financing costs - The Group has successfully transformed into an innovation-driven global family consumer industry group, building an industrial ecosystem covering three core segments: Health, Happiness, and Wealth[4](index=4&type=chunk) - The Group continues to deepen its "in-depth industrial operation + industrial investment" dual-driver strategy, forming unique competitive advantages in global business layout, technological innovation conversion, ecosystem building, and FES management system optimization[4](index=4&type=chunk) - The Group steadfastly executed its "Lean and Fit" strategy, continuously focusing on core industries of healthcare, consumer, and insurance, and strengthening its business foundation[6](index=6&type=chunk) - During the reporting period, the Group's overseas business revenue reached **RMB 46.67 billion**, accounting for **53% of total revenue**, an increase of **6.6 percentage points** compared to the same period in 2024[6](index=6&type=chunk) - The Group's overall R&D investment reached **RMB 3.6 billion**, with a particular focus on medical research and development[6](index=6&type=chunk) [Strategy and Development](index=2&type=section&id=Strategy%20and%20Development) The Group is committed to global cultivation and technological innovation, optimizing its asset portfolio, and diversifying financing channels to enhance resilience and drive sustainable growth [Global Cultivation and Technological Innovation](index=2&type=section&id=Global%20Cultivation%20and%20Technological%20Innovation) The Group has a global industrial presence in over 40 countries and regions, providing high-quality products and innovative solutions to global family customers, despite a revenue decline primarily due to Yuyuan Inc.'s performance, offset by strong insurance business growth - The Group has an industrial presence in over **40 countries and regions** globally, committed to providing high-quality products and services and innovative solutions to global family customers[5](index=5&type=chunk) - During the reporting period, the Group's revenue reached **RMB 87.28 billion**, a **10.8% year-on-year decrease**, primarily due to a decline in Yuyuan Inc.'s revenue, but with strong growth in the insurance business[6](index=6&type=chunk) - The Group's industrial operating profit reached **RMB 3.15 billion**, a **9.3% year-on-year decrease**, and net profit attributable to the parent company was **RMB 660 million**, an **8.2% year-on-year decrease**[8](index=8&type=chunk) [Asset Portfolio Optimization and Diversification of Financing Channels](index=3&type=section&id=Asset%20Portfolio%20Optimization%20and%20Diversification%20of%20Financing%20Channels) The Group maintains a proactive and prudent liquidity and debt management policy, intensifying the disposal of non-core assets, strengthening cash reserves, and successfully issuing bonds while reducing financing costs - The Group adheres to a proactive and prudent liquidity and debt management policy, increasing the disposal of non-core assets to strengthen cash reserves[9](index=9&type=chunk) - In H1 2025, the Group successfully issued USD bonds and domestic bonds, and for the 9th consecutive year, organized an overseas syndicated loan, with financing costs decreasing by over **30 basis points to 5.3%**[9](index=9&type=chunk) - The Group has prioritized debt reduction as a financial strategic focus since 2020, completing the exit of over **RMB 10 billion** equivalent in non-strategic and non-core assets in H1 2025[10](index=10&type=chunk) [Enhancing Quality and Efficiency of Overseas Business, Accelerating Global Deep Operations](index=3&type=section&id=Enhancing%20Quality%20and%20Efficiency%20of%20Overseas%20Business%2C%20Accelerating%20Global%20Deep%20Operations) As a global enterprise rooted in China, the Group continues to enhance quality and efficiency across multiple countries and regions, strengthening deep operations and ecological synergy capabilities [Global R&D and Business Expansion Capabilities](index=4&type=section&id=Global%20R%26D%20and%20Business%20Expansion%20Capabilities) Henlius's Hansizhuang® received marketing approval in the EU and other regions, becoming the first anti-PD-1 monoclonal antibody approved for small cell lung cancer in the EU, now approved in over 30 countries and regions, while HLX22 received orphan drug designation from the US FDA and European Commission for gastric cancer treatment - Henlius's Hansizhuang® received marketing approval in the EU and other regions, becoming the **first anti-PD-1 monoclonal antibody** approved for small cell lung cancer indication in the EU, and has been approved in over **30 countries and regions** globally[14](index=14&type=chunk) - HLX22 (recombinant humanized anti-HER2 monoclonal antibody injection) received orphan drug designation from the US FDA and European Commission for gastric cancer treatment[14](index=14&type=chunk) [Global Business Growth of Overseas Enterprises](index=4&type=section&id=Global%20Business%20Growth%20of%20Overseas%20Enterprises) Fidelidade received an "A" rating from S&P, Hainan Mining's Bougouni Lithium Mine started trial production with overseas revenue rising to 57%, Yuyuan Lantern Festival expanded to Vietnam and Thailand, and Club Med's H1 2025 global turnover reached a new high - Fidelidade received its first "A" rating from S&P, recognizing its high-quality and balanced business portfolio, continuous international expansion, and stable financial performance[13](index=13&type=chunk) - Hainan Mining's Bougouni Lithium Mine Phase I in Mali officially started trial production, accelerating the creation of a "mining + energy" network covering West Africa, the Middle East, and Southeast Asia, with overseas revenue proportion rising to **57%**[14](index=14&type=chunk) - Following its debut in Paris at the end of 2023, the Yuyuan Lantern Festival continued to appear in Hanoi, Vietnam, and Bangkok, Thailand, in 2025, and the Chinese time-honored brand Songhelou opened its first overseas store in London, UK[14](index=14&type=chunk) - Fosun Tourism Group's Club Med achieved a record-high global turnover in H1 2025, growing by **3.8%** compared to the same period in 2024[15](index=15&type=chunk) [Global Capital Operation Capabilities](index=5&type=section&id=Global%20Capital%20Operation%20Capabilities) The Group completed the sale of HAL shares while retaining HAFS for asset services, Fosun International Securities and Asset Management upgraded licenses for virtual asset services, and strategic collaborations deepened in the Middle East - The Group completed the sale of its shares in German private bank HAL, but fully retained HAFS, its asset services entity, which will expand into emerging markets leveraging its global network[18](index=18&type=chunk) - Fosun International Securities and Fosun International Asset Management received approval from the Hong Kong SFC to upgrade their licenses, allowing them to provide virtual asset trading and management services; Star Road Technology launched a global leading one-stop RWA technology, issuance, and distribution platform[18](index=18&type=chunk) - The Group's presence in the Middle East continues to deepen, with Fosun Pharma forming a strategic partnership with Fakeeh Care Group, and FFT establishing a joint venture with Khaled Juffali Company to provide production line solutions for Saudi Arabia's electric vehicle industry[18](index=18&type=chunk) [Multi-dimensional Industrial Ecosystem Resonance, Activating Growth Flywheel](index=5&type=section&id=Multi-dimensional%20Industrial%20Ecosystem%20Resonance%2C%20Activating%20Growth%20Flywheel) The Group leverages its "515 Fosun Family Day" to foster cross-business and cross-segment synergy, covering over 23,000 employee families, and plans to enhance customer asset value and operational efficiency through precise services and value creation - The Group linked over **50 enterprises** within its ecosystem through the "515 Fosun Family Day" event, forming cross-business and cross-segment synergistic effects, covering over **23,000 employee families**[17](index=17&type=chunk) - In the future, the Group will fully leverage its ecological synergy advantages to continuously enhance customer asset value and operational efficiency through precise services and value creation[19](index=19&type=chunk) [Technological Innovation Drives Product Power, Laying Foundation for Sustainable Development](index=6&type=section&id=Technological%20Innovation%20Drives%20Product%20Power%2C%20Laying%20Foundation%20for%20Sustainable%20Development) The Group emphasizes technological innovation as a core strategic pillar, building a "self-R&D + investment incubation + ecological cooperation" integrated global innovation system, with notable advancements in healthcare, happiness, and wealth segments - The Group emphasizes technological innovation as a core strategic pillar, building a "self-R&D + investment incubation + ecological cooperation" integrated global innovation system[20](index=20&type=chunk) - Health Segment: Fosun Pharma's 4 innovative drugs with 5 indications, developed independently or licensed-in, received marketing approval domestically and internationally, filling gaps in rare disease oncology treatment[23](index=23&type=chunk) - Happiness Segment: Club Med continues to implement its "Happy Digitalization" strategy, investing over **EUR 175 million** in the past decade to enhance guest experience and operational efficiency[23](index=23&type=chunk) - Wealth Segment: Fidelidade applied AI large model technology, increasing medical reimbursement invoice recognition rate to **51%** and auto insurance claim rate to **66%**[24](index=24&type=chunk) [Building FES System, Efficient Management for Enduring Success](index=7&type=section&id=Building%20FES%20System%2C%20Efficient%20Management%20for%20Enduring%20Success) FES is the Group's core business management system, evolved to build a century-old enterprise and foster a culture of continuous improvement, with 56 FES tools certified and promoted, 1,443 experts trained, and 947 improvement projects executed, leading to enhanced efficiency in operations like Hainan Mining's smart ore sorting and Bajiaochang gas field's production growth - FES is the Group's core business management system, evolved to build a century-old enterprise and establish a culture of continuous improvement[26](index=26&type=chunk) - During the reporting period, the Group completed the certification and promotion of **56 FES tools**, trained and certified **1,443 experts**, and executed **947 improvement projects**[27](index=27&type=chunk) - Hainan Mining improved efficiency through photoelectric smart ore sorting technology, and the Bajiaochang gas field achieved a **40% year-on-year increase** in production[26](index=26&type=chunk) [Continuously Deepening Business for Good, Diverse Initiatives for Sustainable Development](index=8&type=section&id=Continuously%20Deepening%20Business%20for%20Good%2C%20Diverse%20Initiatives%20for%20Sustainable%20Development) The Group was again recognized in S&P Global's "Sustainability Yearbook 2025" and ranked in the top 1%, also listed in the FTSE4Good Index for four consecutive years, demonstrating its commitment to ESG through initiatives like donating antimalarial drugs to Africa and supporting rural doctors - The Group was again successfully selected for S&P Global's "Sustainability Yearbook 2025" and ranked in the **top 1%**, and has been included in the FTSE4Good Index for **four consecutive years**[29](index=29&type=chunk) - Fosun Pharma pledged to donate **RMB 10 million** worth of artemisinin-based antimalarial drugs to Africa over the next three years, having cumulatively treated over **84 million severe malaria patients** globally[30](index=30&type=chunk) - The Rural Doctor Program covers **78 project counties** in **16 provinces, municipalities, and autonomous regions**, supporting **25,000 rural doctors** and benefiting **16.34 million rural residents**[31](index=31&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) In H1 2025, the Group's total revenue decreased by 10.8% to RMB 87.28 billion, and net profit attributable to the parent decreased by 8.2% to RMB 661.2 million, primarily due to a decline in the Happiness segment, despite profit growth in Health and Wealth segments, while total assets decreased by 7.6% but the asset base remained stable, with all business segments continuing to deepen operations, focusing on innovation and global expansion to navigate a complex macroeconomic environment - As of the end of the reporting period, the Group's equity attributable to owners of the parent reached **RMB 118.1379 billion**, and total assets reached **RMB 735.6872 billion**, a **7.6% decrease** compared to the end of 2024[33](index=33&type=chunk) - During the reporting period, the Group's revenue was **RMB 87.2831 billion**, a **10.8% year-on-year decrease**, primarily due to a decline in revenue from the Happiness segment[34](index=34&type=chunk) [Business Review](index=9&type=section&id=Business%20Review) This section provides a detailed review of the Group's business performance, including segment-wise revenue and profit analysis, asset allocation, and the corporate structure of its principal businesses, offering insights into the financial contributions and strategic positioning of each segment [Segment Revenue and Profit](index=10&type=section&id=Segment%20Revenue%20and%20Profit) Group Segment Revenue (RMB million) | Segment | For the six months ended June 30, 2025 | Share | For the six months ended June 30, 2024 | Share | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Health | 22,565.2 | 25.6% | 23,260.5 | 23.6% | (3.0%) | | Happiness | 33,721.4 | 38.3% | 43,172.1 | 43.7% | (21.9%) | | Wealth | 27,828.3 | 31.5% | 26,947.3 | 27.3% | 3.3% | | Insurance | 20,890.3 | 23.7% | 18,457.6 | 18.7% | 13.2% | | Asset Management | 6,938.0 | 7.8% | 8,489.7 | 8.6% | (18.3%) | | Intelligent Manufacturing | 4,021.3 | 4.6% | 5,331.6 | 5.4% | (24.6%) | | Inter-segment Eliminations | (853.1) | | (873.1) | | | | Total | 87,283.1 | 100.0% | 97,838.4 | 100.0% | (10.8%) | Group Segment Profit/(Loss) Attributable to Owners of the Parent (RMB million) | Segment | For the six months ended June 30, 2025 | Share | For the six months ended June 30, 2024 | Share | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Health | 755.8 | 107.6% | 509.7 | 68.3% | 48.3% | | Happiness | (434.6) | (61.9%) | 164.3 | 22.0% | (364.5%) | | Wealth | 243.1 | 34.7% | 26.8 | 3.7% | 807.1% | | Insurance | 1,217.9 | 173.5% | 1,174.9 | 157.6% | 3.7% | | Asset Management | (974.8) | (138.8%) | (1,148.1) | (153.9%) | 15.1% | | Intelligent Manufacturing | 137.8 | 19.6% | 45.1 | 6.0% | 205.5% | | Inter-segment Eliminations | (40.9) | | (25.8) | | | | Total | 661.2 | 100.0% | 720.1 | 100.0% | (8.2%) | [Asset Allocation](index=10&type=section&id=Asset%20Allocation) Group Asset Allocation (RMB million) | Segment | As of June 30, 2025 | Share | As of December 31, 2024 | Share | Change vs. End of 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Health | 133,231.6 | 17.9% | 130,092.2 | 16.2% | 2.4% | | Happiness | 190,548.6 | 25.6% | 187,879.2 | 23.3% | 1.4% | | Wealth | 391,071.6 | 52.5% | 459,114.7 | 57.0% | (14.8%) | | Insurance | 217,053.0 | 29.1% | 190,995.3 | 23.7% | 13.6% | | Asset Management | 174,018.6 | 23.4% | 268,119.4 | 33.3% | (35.1%) | | Intelligent Manufacturing | 29,827.8 | 4.0% | 27,895.6 | 3.5% | 6.9% | | Inter-segment Eliminations | (8,992.4) | | (8,453.7) | | | | Total | 735,687.2 | 100.0% | 796,528.0 | 100.0% | (7.6%) | [Corporate Structure of Principal Businesses](index=11&type=section&id=Corporate%20Structure%20of%20Principal%20Businesses) The Group's simplified corporate structure diagram outlines significant investments as of June 30, 2025, including consolidated and unconsolidated entities across the Health, Happiness, Wealth, and Intelligent Manufacturing segments - The Group's simplified corporate structure diagram outlines significant investments as of June 30, 2025, including consolidated and unconsolidated entities, covering the Health, Happiness, Wealth, and Intelligent Manufacturing segments[42](index=42&type=chunk) [Health Segment](index=13&type=section&id=Health%20Segment) The Health segment's revenue decreased by 3.0% year-on-year, primarily due to a decline in Fosun Pharma's revenue, while profit attributable to owners of the parent increased by 48.3% year-on-year, mainly driven by higher profits from Fosun Pharma Health Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 22,565.2 | 23,260.5 | (3.0%) | | Profit attributable to owners of the parent | 755.8 | 509.7 | 48.3% | - Health segment revenue decreased by **3.0% year-on-year**, primarily due to a decline in Fosun Pharma's revenue; profit attributable to owners of the parent increased by **48.3% year-on-year**, mainly due to higher profits from Fosun Pharma[47](index=47&type=chunk) [Fosun Pharma](index=13&type=section&id=Fosun%20Pharma) Fosun Pharma's operating revenue decreased, but innovative drug revenue grew steadily by over RMB 4.3 billion, a 14.26% year-on-year increase, with net profit attributable to shareholders at RMB 1.702 billion and operating cash flow increasing by 11.90%, supported by RMB 2.584 billion in R&D investment focused on innovative drugs and high-value medical devices - Fosun Pharma achieved operating revenue of **RMB 19.426 billion**, a slight decrease, but innovative drug revenue grew steadily by over **RMB 4.3 billion**, a **14.26% year-on-year increase**[48](index=48&type=chunk) - Net profit attributable to Fosun Pharma shareholders was **RMB 1.702 billion**, and net cash flow from operating activities was **RMB 2.134 billion**, a **11.90% year-on-year increase**[48](index=48&type=chunk) - R&D investment in H1 2025 totaled **RMB 2.584 billion**, focusing on innovative drugs and high-value medical devices, with 4 innovative drugs across 5 indications receiving marketing approval[49](index=49&type=chunk) [Henlius](index=14&type=section&id=Henlius) Henlius's total revenue increased to approximately RMB 2.8195 billion, with overseas product profit more than doubling, driven by increased R&D expenditure of approximately RMB 995.4 million for innovative projects, and its 6 products (25 indications) now approved in nearly 60 countries/regions, benefiting over 850,000 patients globally - Henlius's total revenue was approximately **RMB 2.8195 billion**, an increase of approximately **RMB 73.4 million year-on-year**, with overseas product profit achieving over **2x breakthrough growth**[51](index=51&type=chunk) - R&D expenditure was approximately **RMB 995.4 million**, an increase of approximately **RMB 169.8 million year-on-year**, used to increase investment in innovative R&D projects[51](index=51&type=chunk) - As of August 22, 2025, Henlius's **6 products (25 indications)** have been successfully approved for marketing in nearly **60 countries/regions**, including China, the US, and Europe, benefiting over **850,000 patients** globally[52](index=52&type=chunk) [Gland Pharma](index=15&type=section&id=Gland%20Pharma) Gland Pharma's consolidated operating revenue remained flat, but post-tax profit reached **INR 4.02 billion**, a 20% year-on-year increase, with a post-tax profit margin of 13.7%, driven by the launch of 12 molecular drugs in the US market and a focus on expanding capacity, strengthening CDMO capabilities, and deepening biopharmaceutical collaborations - Gland Pharma's consolidated operating revenue remained flat, with post-tax profit reaching **INR 4.02 billion**, a **20% year-on-year increase**, and a post-tax profit margin of **13.7%**[55](index=55&type=chunk) - In H1 2025, 12 molecular drugs were launched in the US market, with a commitment to expanding production capacity and enhancing complex injectable and CDMO businesses based on a strong R&D pipeline[55](index=55&type=chunk)[56](index=56&type=chunk) - The company focuses on the GLP-1 sector and capacity expansion, strengthening CDMO capabilities, deepening biopharmaceutical collaborations, and implementing a country-specific market expansion strategy[57](index=57&type=chunk) [Sisram Medical](index=15&type=section&id=Sisram%20Medical) Sisram Medical's global sales and distribution network generated total revenue of **USD 165.5 million**, a 1.9% year-on-year decrease, with profit for the period at **USD 9.0 million**, a 31.9% year-on-year reduction, while launching new AI-based skincare and imaging platforms and expanding its injectable filler business globally - Sisram Medical's global sales and distribution network generated total revenue of **USD 165.5 million**, a **1.9% year-on-year decrease**, with profit for the period at **USD 9.0 million**, a **31.9% year-on-year reduction**[59](index=59&type=chunk)[60](index=60&type=chunk) - Two new products were launched: Universkin, an AI-based personalized skincare system, and Alma IQ™, a new generation imaging platform[61](index=61&type=chunk) - The company is strengthening its global footprint in the injectable filler business and building a commercialization foundation for the peptide-powered botulinum toxin product DAXXIFY in mainland China[61](index=61&type=chunk) [Fosun Health](index=16&type=section&id=Fosun%20Health) Fosun Health controls 19 comprehensive and specialized hospitals, clinics, and third-party testing institutions with 6,600 approved beds and 9 internet hospital licenses, having added 7 new provincial/municipal key specialties, totaling 75, with all four Greater Bay Area hospitals establishing international medical centers and implementing AI-powered smart healthcare services - Fosun Health controls **19 comprehensive hospitals, specialized hospitals, clinics, and third-party testing institutions**, with a total of **6,600 approved beds** and holds **9 internet hospital licenses**[63](index=63&type=chunk) - **7 new provincial/municipal key specialties** were added, totaling **75**; all four Greater Bay Area hospitals have established international medical centers[63](index=63&type=chunk) - In smart healthcare and AI, the four Greater Bay Area hospitals provide AI smart outbound calling services for overdue patients, and Fosun Health Cloud HIS launched an AI assistant to improve doctors' diagnostic efficiency[63](index=63&type=chunk) [Fosun Eldercare (Shanghai Zhuli)](index=17&type=section&id=Fosun%20Eldercare%20%28Shanghai%20Zhuli%29) Fosun Eldercare has invested in and operates elderly care and nursing institutions in nearly ten cities, securing over 11,000 beds and generating operating revenue of RMB 401 million, with its "large annuity insurance + eldercare community residency rights" product in collaboration with insurance companies achieving new premium sales of RMB 2.41 billion - Fosun Eldercare has invested in and operates elderly care and nursing institutions in nearly **ten cities**, securing a total of over **11,000 beds**, and achieved operating revenue of **RMB 401 million**[65](index=65&type=chunk) - The "large annuity insurance + eldercare community residency rights" insurance product, in collaboration with insurance companies, achieved new premium sales of **RMB 2.41 billion**[66](index=66&type=chunk) [Happiness Segment](index=18&type=section&id=Happiness%20Segment) The Happiness segment's revenue decreased by 21.9% year-on-year, resulting in a loss attributable to owners of the parent of RMB 434.6 million, primarily due to a reduction in Yuyuan Inc.'s net profit attributable to the parent Happiness Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 33,721.4 | 43,172.1 | (21.9%) | | (Loss)/Profit attributable to owners of the parent | (434.6) | 164.3 | (364.5%) | - Happiness segment revenue decreased by **21.9% year-on-year**, and loss attributable to owners of the parent was **RMB 434.6 million**, primarily due to a reduction in Yuyuan Inc.'s net profit attributable to the parent[68](index=68&type=chunk) [Yuyuan Inc.](index=18&type=section&id=Yuyuan%20Inc.) Yuyuan Inc. reported operating revenue of RMB 19.112 billion, a 30.68% year-on-year decrease, with net profit attributable to shareholders at RMB 62.81 million, a 94.50% year-on-year reduction, despite a rebound in Q2 for the jewelry fashion group and a 55% increase in GMV for Yuyuan Garden Phase I, while its time-honored restaurant brand Songhelou Noodle House successfully launched in London - Yuyuan Inc. achieved operating revenue of **RMB 19.112 billion**, a **30.68% year-on-year decrease**; net profit attributable to Yuyuan Inc. shareholders was **RMB 62.81 million**, a **94.50% year-on-year reduction**[69](index=69&type=chunk) - The jewelry fashion group's performance was under pressure, but Q2 operating revenue showed a rebound trend; Yuyuan Garden Phase I achieved a Gross Merchandise Volume (GMV) of **RMB 2.61 billion** in H1, a **55% year-on-year increase**[70](index=70&type=chunk) - "Songhelou Noodle House" successfully debuted on the Thames, marking a global breakthrough for the time-honored catering IP[70](index=70&type=chunk) [Shede Spirits](index=19&type=section&id=Shede%20Spirits) Shede Spirits reported operating revenue of RMB 2.7012 billion, a 17.4% year-on-year decrease, with net profit attributable to shareholders at RMB 443.3 million, a 25.0% year-on-year decrease, despite mid-to-high-end liquor revenue reaching RMB 1.9733 billion, and the company expanded its digital ecosystem marketing and overseas presence to 40 countries, though the number of distributors decreased to 2,585 - Shede Spirits achieved operating revenue of **RMB 2.7012 billion**, a **17.4% year-on-year decrease**; net profit attributable to Shede Spirits shareholders was **RMB 443.3 million**, a **25.0% year-on-year decrease**[73](index=73&type=chunk) - Mid-to-high-end liquor achieved operating revenue of **RMB 1.9733 billion**, with deepened digital ecosystem marketing, expanded ecosystem reach, and accelerated overseas business expansion, now present in **40 countries and regions**[73](index=73&type=chunk) - As of the end of the reporting period, the total number of distributors was **2,585**, a decrease of **78** compared to the end of 2024[74](index=74&type=chunk) [Fosun Tourism Group](index=19&type=section&id=Fosun%20Tourism%20Group) Fosun Tourism Group successfully completed its privatization and delisted from the Hong Kong Stock Exchange, with tourism operations revenue reaching RMB 10.231 billion, a 1.6% year-on-year increase (excluding Thomas Cook impact), and Club Med's turnover growing by 3.8% to RMB 9.2532 billion, achieving a global average occupancy rate of 69.8% and an average daily bed price of RMB 2,021.2 - Fosun Tourism Group has successfully completed its privatization and officially delisted from the Hong Kong Stock Exchange[75](index=75&type=chunk) - Tourism operations revenue reached **RMB 10.231 billion**, a **1.6% year-on-year increase** (excluding the impact of Thomas Cook); revenue was **RMB 9.5345 billion**, a **1.3% year-on-year increase**[76](index=76&type=chunk) - Club Med's turnover was **RMB 9.2532 billion**, a **3.8% year-on-year increase**; global average room occupancy rate reached **69.8%**, and average daily bed price was **RMB 2,021.2**, a **5.1% year-on-year increase**[77](index=77&type=chunk) [Lanvin Group](index=20&type=section&id=Lanvin%20Group) Lanvin Group's overall revenue faced pressure, reaching **EUR 133.4 million**, a 22.0% year-on-year decrease, despite flagship brand Lanvin's artistic director Peter Copping's debut at Paris Fashion Week and Sergio Rossi's new collection, as the company actively adjusts its strategic layout, appoints new executives, and plans to expand into high-growth regions like the Middle East - Lanvin Group's overall revenue faced pressure, achieving operating revenue of **EUR 133.4 million**, a **22.0% year-on-year decrease**[81](index=81&type=chunk) - Flagship brand Lanvin's artistic director Peter Copping presented his debut show at Paris Fashion Week, and Sergio Rossi launched its first collection under new creative director Paul Andrew[81](index=81&type=chunk) - The company is actively adjusting its strategic layout, appointing an Executive President and Co-CEO, accelerating corporate transformation, and planning to expand business into high-growth regions such as the Middle East[82](index=82&type=chunk) [Wealth Segment](index=21&type=section&id=Wealth%20Segment) The Wealth segment encompasses two sub-segments: Insurance and Asset Management (including Hive City asset management and investment asset management) - The Wealth segment includes two sub-segments: Insurance and Asset Management (Hive City asset management and investment asset management)[83](index=83&type=chunk) [Insurance Business](index=21&type=section&id=Insurance%20Business) The Insurance segment's revenue increased by 13.2% year-on-year, with profit attributable to owners of the parent rising by 3.7% year-on-year, primarily driven by increased profits from European insurance businesses Insurance Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 20,890.3 | 18,457.6 | 13.2% | | Profit attributable to owners of the parent | 1,217.9 | 1,174.9 | 3.7% | - Insurance segment revenue increased by **13.2% year-on-year**, and profit attributable to owners of the parent increased by **3.7% year-on-year**, primarily due to increased profits from European insurance businesses[86](index=86&type=chunk) [Fidelidade](index=22&type=section&id=Fidelidade) Fidelidade's Gross Written Premiums (GWP) reached **EUR 3.271 billion**, a 16.5% year-on-year increase, achieving a 29.3% market share in Portugal, with international business accounting for 28.2% of total business and overseas GWP reaching **EUR 924 million**, while net profit grew by 27.6% to **EUR 133 million**, and the company achieved significant ESG recognition - Fidelidade's Gross Written Premiums (GWP) reached **EUR 3.271 billion**, a **16.5% year-on-year increase**, achieving a **29.3% market share** in the overall Portuguese market[87](index=87&type=chunk) - International business accounted for **28.2% of total business**, with overseas GWP reaching **EUR 924 million**; net profit was **EUR 133 million**, a **27.6% year-on-year increase**[88](index=88&type=chunk) - Achieved significant achievements in ESG, receiving a CDP climate rating of B from the international environmental disclosure organization and an upgraded "Low Risk" ESG rating from Sustainalytics[89](index=89&type=chunk) [Peak Re](index=23&type=section&id=Peak%20Re) Peak Re achieved gross written premiums of **USD 1.061 billion** and reinsurance revenue of **USD 661 million**, increasing by 25.1% and 36.8% year-on-year respectively, maintaining an A- (Excellent) rating from A.M. Best, expanding its presence in Asian emerging markets, and obtaining a 3B insurance company license for its Bermuda subsidiary, with net profit reaching **USD 88.8 million** and net assets growing to **USD 1.52 billion** - Peak Re achieved gross written premiums of **USD 1.061 billion** and reinsurance revenue of **USD 661 million**, increasing by **25.1% and 36.8% year-on-year** respectively[90](index=90&type=chunk) - Continuously maintained an A- (Excellent) rating from A.M. Best, deepened its presence in Asian emerging markets, and obtained a 3B insurance company license for its Bermuda subsidiary[90](index=90&type=chunk)[91](index=91&type=chunk) - Achieved net profit of **USD 88.8 million**, with net assets increasing from **USD 1.43 billion** at the end of 2024 to **USD 1.52 billion** at the end of the reporting period[92](index=92&type=chunk) [Fosun-Prudential Life](index=23&type=section&id=Fosun-Prudential%20Life) Fosun-Prudential Life's total premium income was RMB 5.365 billion, a 0.8% year-on-year increase, with a comprehensive investment yield of 2.8%, and cumulatively achieved 3,938 eldercare community policies, corresponding to premiums of RMB 3.90 billion, continuously providing high-quality eldercare benefits to customers - Fosun-Prudential Life's total premium income was **RMB 5.365 billion**, a **0.8% year-on-year increase**, with a comprehensive investment yield of **2.8%**[93](index=93&type=chunk) - Cumulatively achieved **3,938 eldercare community policies**, corresponding to premiums of **RMB 3.90 billion**, continuously providing high-quality eldercare benefits to customers[94](index=94&type=chunk) [Fosun United Health Insurance](index=24&type=section&id=Fosun%20United%20Health%20Insurance) Fosun United Health Insurance achieved insurance business revenue of RMB 3.642 billion, a 31.1% year-on-year increase, and net profit of RMB 32.9 million, a RMB 47.9 million year-on-year increase, serving over 7.19 million customers, and actively promoting its "insurance + eldercare" ecological synergy strategy with 1,733 eldercare community policies corresponding to RMB 1.630 billion in premiums - Fosun United Health Insurance achieved insurance business revenue of **RMB 3.642 billion**, a **31.1% year-on-year increase**; net profit was **RMB 32.9 million**, a **RMB 47.9 million year-on-year increase**[95](index=95&type=chunk) - Cumulatively served over **7.19 million customers**, an increase of **2.3%** compared to the end of 2024[95](index=95&type=chunk) - Actively promoted the "insurance + eldercare" ecological synergy strategy, cumulatively achieving **1,733 eldercare community policies**, corresponding to premiums of **RMB 1.630 billion**[96](index=96&type=chunk) [Asset Management Business](index=25&type=section&id=Asset%20Management%20Business) The Asset Management segment's revenue decreased by 18.3% year-on-year, primarily due to reduced revenue from Hive City-related businesses, while the loss attributable to owners of the parent decreased by 15.1%, mainly due to an increase in share of profits from associates Asset Management Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 6,938.0 | 8,489.7 | (18.3%) | | Loss attributable to owners of the parent | (974.8) | (1,148.1) | 15.1% | - Asset Management segment revenue decreased by **18.3% year-on-year**, primarily due to reduced revenue from Hive City-related businesses; loss attributable to owners of the parent decreased by **15.1%**, mainly due to an increase in share of profits from associates[99](index=99&type=chunk) [Fosun Capital](index=25&type=section&id=Fosun%20Capital) Fosun Capital manages 30 funds with over RMB 20 billion in assets, with 6 invested companies applying for IPOs and 2 successfully listed during the reporting period - Fosun Capital manages **30 funds** with assets under management exceeding **RMB 20 billion**; during the reporting period, **6 invested companies** applied for IPOs, of which **2 have successfully listed**[100](index=100&type=chunk) [Fosun RZ Capital (Shanghai Zhiying)](index=25&type=section&id=Fosun%20RZ%20Capital%20%28Shanghai%20Zhiying%29) Fosun RZ Capital manages nearly RMB 10 billion in assets, having invested in over a hundred quality enterprises, with 4 new investments in AI+robotics, intelligent manufacturing, and new overseas expansion sectors, and 10 projects successfully exited during the reporting period - Fosun RZ Capital's total assets under management are nearly **RMB 10 billion**, having invested in over a hundred quality enterprises; during the reporting period, **4 new investments** were made in AI+robotics, intelligent manufacturing, and new overseas expansion sectors, and **10 projects achieved successful exits**[101](index=101&type=chunk) [HAL](index=26&type=section&id=HAL) HAL's total revenue decreased by 3.4% year-on-year to **EUR 218.3 million**, with pre-tax profit falling from **EUR 62.3 million** in the same period of 2024 to **EUR 55.1 million**, as the Group completed the sale of all HAL shares but retained HAFS for further expansion of asset services - HAL's total operating revenue decreased by **3.4% year-on-year** to **EUR 218.3 million**; pre-tax profit decreased from **EUR 62.3 million** in the same period of 2024 to **EUR 55.1 million**[102](index=102&type=chunk) - The Group has completed the sale of all HAL shares but retained all shares of HAFS, which will further expand its asset services business[102](index=102&type=chunk) [BCP](index=26&type=section&id=BCP) BCP's consolidated net profit increased by 3.5% year-on-year to **EUR 502.3 million**, achieving a Return on Equity (ROE) of 14.3%, with consolidated total assets increasing by 5.8% to **EUR 105.5 billion**, and total capital adequacy ratio and CET1 ratio reaching 20.2% and 16.2% respectively, while mobile customers grew by 9% - BCP's consolidated net profit was **EUR 502.3 million**, a **3.5% year-on-year increase**; Return on Equity (ROE) reached **14.3%**[103](index=103&type=chunk) - Consolidated total assets were **EUR 105.5 billion**, a **5.8% year-on-year increase**; total capital adequacy ratio and Common Equity Tier 1 (CET1) ratio reached **20.2% and 16.2%** respectively[103](index=103&type=chunk) - The number of mobile customers increased by **9%** compared to the same period last year, now accounting for **73%** of active customers[104](index=104&type=chunk) [BFC Bund Financial Center](index=26&type=section&id=BFC%20Bund%20Financial%20Center) BFC recorded total operating revenue of RMB 367.4 million, a 5.9% year-on-year decrease, with operating EBITDA at RMB 217.2 million, an 8.5% year-on-year decrease, despite introducing luxury brands, upgrading its B2 floor to an IP supermarket, and creating a pet-friendly space, while adding approximately 153,000 new members, bringing the total to 1.385 million, by leveraging proprietary IP festivals and international IPs to target fashion-conscious young customers - BFC recorded total operating revenue of **RMB 367.4 million**, a **5.9% year-on-year decrease**; operating EBITDA was **RMB 217.2 million**, an **8.5% year-on-year decrease**[107](index=107&type=chunk) - Introduced trendy luxury brands such as Jimmy Choo and Maison Kitsuné, upgraded the South Zone B2 floor to an IP supermarket, and created a pet-friendly entertainment space[107](index=107&type=chunk) - Added approximately **153,000 new members**, bringing the total membership to approximately **1.385 million**, precisely targeting fashion-conscious young customer groups by creating proprietary IP festivals and introducing internationally renowned IPs[107](index=107&type=chunk) [Intelligent Manufacturing Segment](index=27&type=section&id=Intelligent%20Manufacturing%20Segment) The Intelligent Manufacturing segment's revenue decreased by 24.6% year-on-year, but increased by 14.0% excluding consolidation scope changes, while profit attributable to owners of the parent increased by 205.5% year-on-year, primarily due to higher profits from FFT Intelligent Manufacturing Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 4,021.3 | 5,331.6 | (24.6%) | | Profit attributable to owners of the parent | 137.8 | 45.1 | 205.5% | - Intelligent Manufacturing segment revenue decreased by **24.6% year-on-year**, but increased by **14.0%** if the impact of changes in consolidation scope is excluded; profit attributable to owners of the parent increased by **205.5% year-on-year**, primarily due to higher profits from FFT[109](index=109&type=chunk) [Hainan Mining](index=28&type=section&id=Hainan%20Mining) Hainan Mining's net profit attributable to listed company shareholders decreased by 30.36% year-on-year to RMB 280.5 million, primarily due to falling iron ore and oil prices, despite operating revenue increasing by 10.46% to RMB 2.4153 billion through measures like significantly boosting oil and gas production, with the Bougouni Lithium Mine and 20,000-ton lithium hydroxide project entering trial production and oil and gas equity production growing over 50% year-on-year - Hainan Mining's net profit attributable to listed company shareholders decreased by **30.36% year-on-year** to **RMB 280.5 million**, primarily due to falling iron ore and oil prices[110](index=110&type=chunk) - Operating revenue reached **RMB 2.4153 billion**, a **10.46% year-on-year increase**, by implementing measures such as significantly boosting oil and gas production to address challenges[110](index=110&type=chunk) - The Bougouni Lithium Mine and the 20,000-ton lithium hydroxide project have entered trial production, and oil and gas equity production increased by over **50% year-on-year**[111](index=111&type=chunk) [Wansheng Co.](index=28&type=section&id=Wansheng%20Co.) Wansheng Co.'s operating revenue increased by 17.07% year-on-year to RMB 1.62315 billion, while net profit attributable to shareholders decreased by 65.02% year-on-year to RMB 26.32 million, despite main product sales growing by 6.29% to 105,400 tons, and the Weifang base's 44,200-ton high-end new material integrated production project (Phase I) entering equipment installation and commissioning - Wansheng Co.'s operating revenue was **RMB 1.62315 billion**, a **17.07% year-on-year increase**; net profit attributable to Wansheng Co. shareholders was **RMB 26.32 million**, a **65.02% year-on-year decrease**[113](index=113&type=chunk) - Main product sales were **105,400 tons**, a **6.29% year-on-year increase**; the Weifang base's annual production of 44,200 tons of high-end new material integrated production project (Phase I) has entered the equipment installation and commissioning phase[114](index=114&type=chunk)[115](index=115&type=chunk) [FFT](index=29&type=section&id=FFT) FFT's global new order value was approximately RMB 3.755 billion, with active utilization of AI technology to develop various AI agents for enhanced production efficiency and reduced engineer input, and future plans to strengthen profitability in the automotive industry, expand automation clients in other industrial sectors, and accelerate industrial digitalization - FFT's global new order value was approximately **RMB 3.755 billion**[116](index=116&type=chunk) - Actively utilizing artificial intelligence technology to develop various AI agents to enhance production efficiency and reduce engineer input[116](index=116&type=chunk) - Future plans include strengthening profitability in the automotive industry's main business, expanding automation clients in other industrial sectors, and accelerating the development of industrial digitalization business[117](index=117&type=chunk) [Financial Review](index=30&type=section&id=Financial%20Review) In H1 2025, the Group's net interest expense slightly decreased, while tax expense increased due to higher taxable profit; total debt slightly rose, but the proportion of medium-to-long-term debt remained stable; cash and bank balances decreased, mainly due to the disposal of HAL, leading to a slight increase in the total debt to total capital ratio but an improved interest coverage ratio [Net Interest Expense](index=30&type=section&id=Net%20Interest%20Expense) The Group's net interest expense after capitalization decreased from RMB 6.248 billion to RMB 6.1824 billion, primarily due to lower borrowing interest rates - The Group's net interest expense after capitalization decreased from **RMB 6.248 billion** to **RMB 6.1824 billion**, primarily due to lower borrowing interest rates[118](index=118&type=chunk) [Taxation](index=30&type=section&id=Taxation) The Group's taxation for the six months ended June 30, 2025, was RMB 1.2016 billion, an increase of RMB 91.7 million compared to the same period in 2024, mainly due to higher taxable profit - The Group's taxation for the six months ended June 30, 2025, was **RMB 1.2016 billion**, an increase of **RMB 91.7 million** compared to the same period in 2024, primarily due to higher taxable profit[119](index=119&type=chunk) [Group Debt and Liquidity](index=30&type=section&id=Group%20Debt%20and%20Liquidity) As of June 30, 2025, the Group's total debt was RMB 222.1005 billion, an increase from December 31, 2024, with medium-to-long-term debt accounting for 48.5% of total debt, a slight decrease from 48.7% at the end of 2024, and cash and bank balances decreasing to RMB 67.8301 billion, mainly due to no longer holding HAL - As of June 30, 2025, the Group's total debt was **RMB 222.1005 billion**, an increase compared to December 31, 2024[120](index=120&type=chunk) - Medium-to-long-term debt accounted for **48.5% of total debt**, a slight decrease from **48.7%** at the end of 2024[120](index=120&type=chunk) - Cash and bank balances and time deposits were **RMB 67.8301 billion**, a decrease of **RMB 38.5092 billion** compared to the end of 2024, primarily due to the Group no longer holding HAL[120](index=120&type=chunk) [Total Debt to Total Capital Ratio](index=30&type=section&id=Total%20Debt%20to%20Total%20Capital%20Ratio) As of June 30, 2025, the total debt to total capital ratio (leverage ratio) was 53.0%, an increase from 52.0% as of December 31, 2024 - As of June 30, 2025, the total debt to total capital ratio (leverage ratio) was **53.0%**, an increase from **52.0%** as of December 31, 2024[121](index=121&type=chunk) [Available Financing Sources](index=30&type=section&id=Available%20Financing%20Sources) As of June 30, 2025, the Group had unutilized bank credit facilities totaling RMB 139.4399 billion, and strategic cooperation agreements with multiple banks provided total available credit of approximately RMB 331.1029 billion, of which RMB 191.6630 billion had been utilized - As of June 30, 2025, the Group's total unutilized bank credit facilities amounted to **RMB 139.4399 billion**[122](index=122&type=chunk) - Strategic cooperation agreements with multiple banks provided total available credit of approximately **RMB 331.1029 billion**, of which **RMB 191.6630 billion** had been actually utilized[122](index=122&type=chunk)[123](index=123&type=chunk) [Interest Coverage Ratio](index=31&type=section&id=Interest%20Coverage%20Ratio) For the six months ended June 30, 2025, the interest coverage ratio was 2.5 times, compared to 2.4 times in the same period of 2024, primarily due to an increase in the Group's EBITDA during the reporting period - For the six months ended June 30, 2025, the interest coverage ratio was **2.5 times**, compared to **2.4 times** in the same period of 2024, primarily due to an increase in the Group's EBITDA during the reporting period[124](index=124&type=chunk) [Condensed Interim Consolidated Financial Statements](index=32&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed interim consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss, statement of comprehensive income, and statement of financial position, providing investors with detailed insights into the Group's financial performance and asset-liability status during the reporting period [Condensed Interim Consolidated Statement of Profit or Loss](index=32&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This subsection provides the condensed interim consolidated statement of profit or loss, detailing the Group's revenues, expenses, and net profit or loss for the reporting period [Condensed Interim Consolidated Statement of Comprehensive Income](index=33&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) This subsection presents the condensed interim consolidated statement of comprehensive income, outlining the Group's total comprehensive income, including profit or loss and other comprehensive income, for the reporting period [Condensed Interim Consolidated Statement of Financial Position](index=35&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) This subsection details the condensed interim consolidated statement of financial position, providing a snapshot of the Group's assets, liabilities, and equity as of the end of the reporting period [Notes to the Financial Statements](index=38&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the condensed interim consolidated financial statements, explaining the basis of preparation, changes in accounting policies, operating segment information, revenue composition, finance costs, taxation, earnings per share, trade and bills receivables and payables, and liquidity information, offering essential context and details for understanding the financial data [Basis of Preparation and Changes in Accounting Policies](index=38&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The condensed interim financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024, with the Board deeming the going concern basis appropriate and the adoption of revised HKFRS having no material impact - The condensed interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[131](index=131&type=chunk) - The Board considers it appropriate to prepare the financial information on a going concern basis, taking into account unutilized credit facilities and projected cash flows[131](index=131&type=chunk) - The revised Hong Kong Financial Reporting Standards, specifically Hong Kong Accounting Standard 21 (Amendment) regarding lack of exchangeability, had no material impact on the condensed interim consolidated financial information for this period[133](index=133&type=chunk)[134](index=134&type=chunk) [Operating Segment Information](index=40&type=section&id=Operating%20Segment%20Information) The Group categorizes its business units into five reportable operating segments—Health, Happiness, Insurance, Asset Management, and Intelligent Manufacturing—based on products and services provided, with Insurance and Asset Management falling under the Wealth segment - The Group categorizes its business units into five reportable operating segments based on products and services provided: Health, Happiness, Insurance, Asset Management, and Intelligent Manufacturing, with Insurance and Asset Management belonging to the Wealth segment[135](index=135&type=chunk)[136](index=136&type=chunk) Revenue from External Customers (RMB thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 40,613,216 | 51,965,319 | | Portugal | 12,991,583 | 11,850,498 | | Other Countries and Regions | 33,678,291 | 34,022,622 | | Total | 87,283,090 | 97,838,439 | [Total Revenue, Other Income and Gains](index=47&type=section&id=Total%20Revenue%2C%20Other%20Income%20and%20Gains) This section provides a detailed breakdown of the Group's total revenue, other income, and gains, offering insights into the various sources contributing to the Group's overall financial performance Total Revenue Source Analysis (RMB thousand) | Source | 2025 | 2024 | | :--- | :--- | :--- | | Sales of goods | 42,270,442 | 54,029,245 | | Services rendered | 21,781,799 | 22,351,895 | | Insurance business income | 20,296,216 | 18,212,384 | | Rental income | 1,535,221 | 1,115,431 | | Interest income | 1,646,477 | 2,376,578 | | Total | 87,283,090 | 97,838,439 | Other Income and Gains Analysis (RMB thousand) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Subtotal of Other Income | 5,594,608 | 4,692,595 | | Subtotal of Gains | 2,687,020 | 2,910,809 | | Total | 8,281,628 | 7,603,404 | [Finance Costs](index=53&type=section&id=Finance%20Costs) This section details the composition of the Group's finance costs, including interest expenses, lease interest expenses, and other financial charges, after deducting capitalized interest, providing a clear overview of borrowing-related expenditures Finance Costs Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total interest (excluding lease interest expense) | 6,033,622 | 6,309,323 | | Lease interest expense | 494,937 | 465,656 | | Less: Capitalized interest | (369,385) | (558,130) | | Net interest expense | 6,167,504 | 6,243,638 | | Bill discount interest | 14,874 | 4,394 | | Bank charges and other finance costs | 322,263 | 211,511 | | Total finance costs | 6,504,641 | 6,459,543 | [Profit Before Tax](index=54&type=section&id=Profit%20Before%20Tax) The Group's profit before tax is calculated after deducting costs of sales, insurance service expenses, depreciation, and amortization, and after accounting for net impairment losses on financial assets and gains/losses from disposal of subsidiaries/associates - The Group's profit before tax is calculated after deducting costs of sales, insurance service expenses, depreciation and amortization, and after accounting for net impairment losses on financial assets, gains/losses from disposal of subsidiaries/associates, and other items[150](index=150&type=chunk)[151](index=151&type=chunk) [Taxation](index=56&type=section&id=Taxation) Taxation expenses primarily comprise corporate income tax from Mainland China, Portugal, Hong Kong, and other regions, calculated based on applicable tax rates, with prepaid land appreciation tax and additional provisions made during the period Major Components of Tax Expense (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current - Portugal, Hong Kong and other regions | 275,073 | 689,644 | | Current - Mainland China corporate income tax | 833,903 | 1,257,409 | | Current - Mainland China land appreciation tax | 120,522 | (389,274) | | Deferred tax | (27,924) | (447,857) | | Tax expense for the period | 1,201,574 | 1,109,922 | - Tax expense primarily comprises corporate income tax from Mainland China, as well as Portugal, Hong Kong, and other regions, calculated based on applicable tax rates in each region[152](index=152&type=chunk)[153](index=153&type=chunk) - During the period, prepaid land appreciation tax amounted to **RMB 65.539 million**, and an additional land appreciation tax provision of **RMB 87.460 million** was made[155](index=155&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=59&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) This section details the calculation of basic and diluted earnings per share attributable to ordinary equity holders of the parent, providing the profit figures and weighted average number of ordinary shares used for these computations Basis for Earnings Per Share Calculation (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent | 661,162 | 720,117 | | Adjusted profit attributable to ordinary equity holders of the parent for basic EPS calculation | 660,493 | 719,040 | | Profit attributable to ordinary equity holders of the parent for diluted EPS calculation | 661,162 | 720,117 | Number of Shares for Earnings Per Share (shares) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Weighted average number of ordinary shares outstanding during the period for basic EPS calculation | 8,124,117,230 | 8,136,799,651 | | Weighted average number of ordinary shares for diluted basic EPS calculation | 8,135,446,536 | 8,149,182,940 | | Basic earnings per share (RMB) | 0.08 | 0.09 | | Diluted earnings per share (RMB) | 0.08 | 0.09 | [Trade and Bills Receivables](index=61&type=section&id=Trade%20and%20Bills%20Receivables) Trade and bills receivables primarily originate from the Health and Happiness segments, with credit periods typically ranging from 90 to 180 days for Health and 30 to 360 days for Happiness Trade and Bills Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 12,704,887 | 12,447,980 | | Bills receivables | 343,677 | 382,580 | | Total | 13,048,564 | 12,830,560 | - Trade receivables primarily originate from the Health segment and the Happiness segment, with credit periods typically ranging from **90 to 180 days** for the Health segment and **30 to 360 days** for the Happiness segment[162](index=162&type=chunk) [Trade and Bills Payables](index=62&type=section&id=Trade%20and%20Bills%20Payables) Trade and bills payables primarily arise from the Health and Happiness segments, generally settled within 30 to 60 days or according to property construction progress Trade and Bills Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 18,426,894 | 19,772,155 | | Bills payables | 3,241,177 | 3,243,706 | | Total | 21,668,071 | 23,015,861 | - Trade and bills payables primarily originate from the Health segment and the Happiness segment, generally settled within **30 to 60 days** or according to property construction progress[163](index=163&type=chunk) [Dividends](index=63&type=section&id=Dividends) The Board resolved not to declare an interim dividend for the reporting period, while the proposed final dividend of HKD 0.02 per ordinary share for the year ended December 31, 2024, was approved at the AGM on June 5, 2025 - The Board resolved not to declare an interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[165](index=165&type=chunk) - The proposed final dividend of **HKD 0.02 per ordinary share** for the year ended December 31, 2024, was approved at the Annual General Meeting on June 5, 2025[164](index=164&type=chunk) [Liquidity Information](index=63&type=section&id=Liquidity%20Information) The Group presents all assets and liabilities in its consolidated statement of financial position by liquidity order, further disclosing amounts expected to be recovered or settled within or beyond 12 months, with assets recoverable within 12 months totaling RMB 251.979 billion and liabilities payable within 12 months totaling RMB 252.236 billion as of June 30, 2025 - The Group presents all assets and liabilities in its consolidated statement of financial position in order of liquidity, and further discloses the amounts of each asset and liability item expected to be recovered or settled within or beyond 12 months[166](index=166&type=chunk) - As of June 30, 2025, assets expected to be recovered within **not more than twelve months** amounted to **RMB 251.979 billion**, and liabilities expected to be settled within **not more than twelve months** amounted to **RMB 252.236 billion**[131](index=131&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) [Other Information](index=67&type=section&id=Other%20Information) This section covers events after the reporting period, interim dividend decisions, share repurchase activities, updates on share award and share option schemes, the Audit Committee's review of interim results, compliance with corporate governance code, publication of the interim report, forward-looking statements, and definitions of terms [Events After the Reporting Period](index=67&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this announcement, the Group has no post-reporting period events requiring disclosure - As of the date of this announcement, the Group has no post-reporting period events requiring disclosure[171](index=171&type=chunk) [Interim Dividend](index=68&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the reporting period - The Board resolved not to declare an interim dividend for the reporting period[172](index=172&type=chunk) [Repurchase, Sale or Redemption of the Company's Listed Securities](index=68&type=section&id=Repurchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) The Company repurchased a total of 31,082,500 shares on the Hong Kong Stock Exchange during the reporting period for a total consideration of HKD 126,306,230, all of which have been cancelled - The Company repurchased a total of **31,082,500 shares** on the Hong Kong Stock Exchange during the reporting period, for a total consideration of **HKD 126,306,230**, and all repurchased shares have been cancelled[173](index=173&type=chunk) 2025 Share Repurchase Details (HKD) | Month | Number of Shares Repurchased | Repurchase Price Per Share (Highest) | Repurchase Price Per Share (Lowest) | Total Repurchase Price Paid | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 299,500 | 4.09 | 4.05 | 1,222,760.00 | | March 2025 | 4,423,000 | 4.22 | 4 | 18,298,375.00 | | April 2025 | 26,360,000 | 4.45 | 3.75 | 106,785,095.00 | | Total | 31,082,500 | – | – | 126,306,230.00 | [Share Award Scheme](index=68&type=section&id=Share%20Award%20Scheme) The 2015 Share Award Scheme was terminated on March 16, 2023, but unvested awarded shares remain valid, while the 2023 Share Award Scheme granted a total of 15,213,000 awarded shares to 91 selected participants on June 27, 2025, all of which have been issued to the trustee - The 2015 Share Award Scheme was terminated on March 16, 2023, but unvested awarded shares remain valid[175](index=175&type=chunk) - The 2023 Share Award Scheme granted a total of **15,213,000 awarded shares** to **91 selected participants** on June 27, 2025, all of which have been issued to the trustee[176](index=176&type=chunk)[177](index=177&type=chunk) [Share Option Scheme](index=69&type=section&id=Share%20Option%20Scheme) The 2007 and 2017 Share Option Schemes have expired or been terminated, but unexercised share options remain valid, while the 2023 Share Option Scheme granted 49,530,000 share options on June 27, 2025, to subscribe for a total of 49,530,000 shares in the Company's capital - The 2007 and 2017 Share Option Schemes have expired or been terminated, but unexercised share options remain valid[178](index=178&type=chunk) - The 2023 Share Option Scheme granted **49,530,000 share options** on June 27, 2025, to subscribe for a total of **49,530,000 shares** in the Company's capital[179](index=179&type=chunk) [Review of Interim Results](index=69&type=section&id=Review%20of%20Interim%20Results) The Company's Audit Committee has reviewed the interim results for the reporting period and found no objections to the accounting treatments adopted by the

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