[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Overview of Financial Highlights](index=1&type=section&id=Overview%20of%20Financial%20Highlights) Kangqiao Happy Life Group's total revenue for the six months ended June 30, 2025, decreased by 6.6% year-on-year to RMB 455.2 million, with declines in non-owner and community value-added services despite growth in property management and city services. Gross profit and net profit both decreased, with profit attributable to owners down 21.8%, and the board resolved not to declare an interim dividend Key Financial Data for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455.2 | 487.3 | -6.6% | | Property Management Services Revenue | 353.7 | - | +5.6% | | Non-owner Value-added Services Revenue | 15.7 | - | -72.3% | | Community Value-added Services Revenue | 45.5 | - | -21.3% | | City Services Revenue | 40.2 | - | +7.3% | | Gross Profit | 98.5 | 105.5 | -6.7% | | Gross Profit Margin | 21.6% | 21.7% | -0.1pp | | Profit for the Period | 43.4 | 53.3 | -18.6% | | Profit Attributable to Owners of the Company | 33.5 | 42.8 | -21.8% | | Contracted GFA for Property Management Services | 68.3 (million sq.m.) | 71.1 (million sq.m.) | -4.0% | | GFA Under Management | 46.2 (million sq.m.) | 43.2 (million sq.m.) | +6.9% | - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[3](index=3&type=chunk) [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by 6.6% year-on-year to RMB 455.2 million, with a corresponding decrease in cost of sales, resulting in a gross profit of RMB 98.5 million, operating profit of RMB 55.8 million, and profit for the period of RMB 43.4 million, while profit attributable to owners of the company decreased by 21.8% to RMB 33.5 million, with basic and diluted earnings per share at RMB 0.048 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator (RMB thousand) | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 455,202 | 487,273 | | Cost of sales | (356,713) | (381,726) | | Gross profit | 98,489 | 105,547 | | Administrative expenses | (21,791) | (23,938) | | Selling and marketing expenses | (2,491) | (4,271) | | Net impairment losses on financial assets | (18,071) | (15,130) | | Other income | 179 | 3,622 | | Other (losses)/gains – net | (521) | 1,933 | | Operating profit | 55,794 | 67,763 | | Finance income – net | 1,012 | 781 | | Share of profits of investments accounted for using the equity method | 48 | 667 | | Profit before income tax | 56,854 | 69,211 | | Income tax expense | (13,503) | (15,924) | | Profit for the period | 43,351 | 53,287 | | Profit attributable to: | | | | Owners of the Company | 33,483 | 42,811 | | Non-controlling interests | 9,868 | 10,476 | | Total comprehensive income for the period | 42,552 | 54,052 | | Basic and diluted earnings per share (RMB) | 0.048 | 0.061 | [Interim Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to RMB 1,600.1 million from the end of 2024, with current assets rising to RMB 1,385.1 million, while total liabilities increased to RMB 785.7 million, mainly due to higher contract liabilities and litigation provisions within current liabilities, and equity attributable to owners of the company increased to RMB 756.9 million Interim Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **ASSETS** | | | | Total non-current assets | 215,036 | 216,494 | | Total current assets | 1,385,077 | 1,299,854 | | **TOTAL ASSETS** | **1,600,113** | **1,516,348** | | **EQUITY** | | | | Equity attributable to owners of the Company | 756,908 | 724,224 | | Non-controlling interests | 57,543 | 53,896 | | **TOTAL EQUITY** | **814,451** | **778,120** | | **LIABILITIES** | | | | Total non-current liabilities | 22,794 | 16,453 | | Total current liabilities | 762,868 | 721,775 | | **TOTAL LIABILITIES** | **785,662** | **738,228** | | **TOTAL EQUITY AND LIABILITIES** | **1,600,113** | **1,516,348** | [Notes to the Interim Financial Information](index=7&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) [1 General Information](index=7&type=section&id=1%20General%20Information) Kangqiao Happy Life Group Co., Ltd. is incorporated in the Cayman Islands, primarily providing property management, related value-added, and city services in China, controlled by Mr. Song Gewei, with interim financial information presented in RMB and unaudited - The Company is incorporated in the Cayman Islands, with its principal business being the provision of property management services, related value-added services, and city services in China[8](index=8&type=chunk) - The ultimate controlling entity of the Group is Hung Fai Property Limited, controlled by **Mr. Song Gewei**[8](index=8&type=chunk) - The interim financial information is unaudited and presented in **RMB**[9](index=9&type=chunk)[10](index=10&type=chunk) [2 Basis of Preparation](index=7&type=section&id=2%20Basis%20of%20Preparation) The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024 - The interim financial information is prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"**[11](index=11&type=chunk) [3 Significant Accounting Policies](index=8&type=section&id=3%20Significant%20Accounting%20Policies) The accounting policies for this period are consistent with those applied in the preparation of the 2024 annual consolidated financial statements, except for the initial adoption of amended Hong Kong Financial Reporting Standards, with the amendments to HKAS 21 regarding lack of exchangeability having no impact on the Group's interim financial information - The accounting policies adopted in the preparation of this interim condensed consolidated financial information are consistent with those applied in the Group’s annual consolidated financial statements for the year ended December 31, 2024, except for the initial adoption of amended Hong Kong Financial Reporting Standards[12](index=12&type=chunk) - The amendments to HKAS 21 regarding lack of exchangeability have no impact on the interim financial information, as the functional currencies of the Group entities and the currencies of the Group's transactions are all exchangeable into the Group's presentation currency[13](index=13&type=chunk) [4 Segment Information](index=8&type=section&id=4%20Segment%20Information) The Group's management reviews the operating results of its business as a single reportable segment due to the consistent nature, customer types, service methods, and regulatory environment of its property management, value-added, and city services in China, with all revenue and most assets originating from China - The Company's management reviews the operating results of its business as a single reportable segment, given the consistent nature of services, customer types, service delivery methods, and regulatory environment across different regions[15](index=15&type=chunk) - For the six months ended June 30, 2025, and June 30, 2024, all of the Group's revenue was derived from China, and the majority of its assets are located in China[15](index=15&type=chunk) [5 Revenue](index=9&type=section&id=5%20Revenue) For the six months ended June 30, 2025, the Group's total revenue was RMB 455.2 million, a 6.6% year-on-year decrease, with property management services revenue accounting for 77.7% and growing by 5.6%, while non-owner value-added services and community value-added services revenue significantly declined by 72.3% and 21.3% respectively, and city services revenue increased by 7.3% Revenue Analysis by Category (RMB thousand) | Revenue Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Property management services | 353,711 | 335,036 | | Non-owner value-added services | 15,749 | 56,864 | | Community value-added services | 45,534 | 57,887 | | City services | 40,208 | 37,486 | | **Total** | **455,202** | **487,273** | Timing of Revenue Recognition (RMB thousand) | Recognition Method | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Over time | 433,124 | 437,386 | | At a point in time | 22,078 | 49,887 | | **Total** | **455,202** | **487,273** | - Revenue contributed by entities controlled by Mr. Song accounted for **0.9%** of the Group's revenue (2024: 1.6%)[16](index=16&type=chunk) [6 Expenses by Nature](index=10&type=section&id=6%20Expenses%20by%20Nature) For the six months ended June 30, 2025, the Group's total expenses were RMB 381.0 million, a decrease of approximately 7.1% from the same period in 2024, with major expenses including employee benefit expenses, landscaping and cleaning fees, security maintenance costs, and repair and customer service costs Expenses by Nature (RMB thousand) | Expense Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Employee benefit expenses | 95,561 | 106,195 | | Landscaping and cleaning fees | 91,137 | 88,201 | | Security maintenance costs | 69,167 | 64,056 | | Repair and customer service costs | 41,160 | 39,048 | | Utilities | 30,598 | 25,563 | | Sales agency service costs | 10,083 | 21,373 | | Cost of goods sold | 9,353 | 10,723 | | Office expenses | 4,657 | 6,491 | | Travel and entertainment expenses | 3,149 | 3,761 | | Decoration business costs | 2,690 | 5,281 | | Amortisation of intangible assets | 2,044 | 1,914 | | Depreciation of property and equipment | 1,774 | 2,282 | | Depreciation of right-of-use assets | 1,195 | 943 | | Depreciation of investment properties | 493 | 740 | | Auditor's remuneration | 725 | 784 | | Others | 17,209 | 32,580 | | **Total** | **380,995** | **409,935** | [7 Income Tax Expense](index=10&type=section&id=7%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was RMB 13.5 million, a 15.2% decrease from the same period in 2024, with the statutory corporate income tax rate in China being 25%, while some subsidiaries enjoy a 20% reduction, and no withholding income tax has been provided for undistributed earnings of Chinese subsidiaries Income Tax Expense (RMB thousand) | Tax Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Current income tax – PRC corporate income tax | 19,179 | 21,838 | | Deferred income tax – PRC corporate income tax | (5,676) | (5,914) | | **Total** | **13,503** | **15,924** | - The Company's subsidiaries in the Cayman Islands and British Virgin Islands are exempt from income tax, and no Hong Kong profits tax provision is made as Hong Kong operations have no assessable profits[19](index=19&type=chunk) - The statutory tax rate for PRC operations is **25%**, with some subsidiaries qualifying as small low-profit enterprises enjoying a **20%** income tax reduction[19](index=19&type=chunk) - The Group has not provided for any withholding income tax on the undistributed earnings of its PRC subsidiaries for the six months ended June 30, 2025, as these are not expected to be distributed outside China in the near future[20](index=20&type=chunk) [8 Earnings Per Share](index=11&type=section&id=8%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the company decreased to RMB 0.048 from RMB 0.061 in the same period of 2024, with the weighted average number of ordinary shares outstanding being 700,000 thousand shares and no potential ordinary shares during the period Earnings Per Share Calculation (RMB thousand) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 33,483 | 42,811 | | Weighted average number of ordinary shares outstanding (thousand shares) | 700,000 | 700,000 | | **Basic and diluted earnings per share attributable to owners of the Company (RMB per share)** | **0.048** | **0.061** | - For the six months ended June 30, 2025, and June 30, 2024, the Company had no outstanding potential ordinary shares, thus diluted earnings per share equal basic earnings per share[21](index=21&type=chunk) [9 Trade and Other Receivables and Prepayments](index=12&type=section&id=9%20Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total trade and other receivables amounted to RMB 997.1 million, a 6.1% increase from the end of 2024, with impairment provisions for trade receivables rising to RMB 200.2 million, and an increased proportion of trade receivables over 1 year indicating slower collection, while the non-current portion of prepayments is primarily for acquiring equity in a property management company Trade and Other Receivables and Prepayments (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables (net of impairment allowance) | 645,552 | 600,839 | | Other receivables (net of impairment allowance) | 351,546 | 338,625 | | Prepayments (current portion) | 3,057 | 1,495 | | **Current portion of trade and other receivables and prepayments** | **1,000,155** | **940,959** | | Impairment allowance for trade receivables | (200,174) | (179,798) | | Impairment allowance for other receivables | (39,862) | (41,355) | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 285,729 | 378,657 | | 1 to 2 years | 244,104 | 158,437 | | 2 to 3 years | 151,116 | 140,438 | | Over 3 years | 164,777 | 103,105 | | **Total** | **845,726** | **780,637** | - The non-current portion of prepayments primarily consists of **RMB 59,884 thousand**, used for the acquisition of an 80% equity interest in a property management services company[25](index=25&type=chunk) [10 Trade and Other Payables](index=14&type=section&id=10%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to RMB 337.7 million, a 3.2% decrease from the end of 2024, with third-party payments constituting the largest portion of trade payables, and an increase in amounts overdue for more than one year, while other payables primarily include amounts due to related parties, deposits, and accrued salaries Trade and Other Payables (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables | 108,744 | 90,059 | | Other payables | 228,934 | 258,947 | | **Current portion of trade and other payables** | **337,678** | **348,908** | | Less: Non-current portion of other payables | - | (98) | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 93,594 | 82,311 | | 1 to 2 years | 12,773 | 6,451 | | 2 to 3 years | 1,347 | 1,262 | | Over 3 years | 1,030 | 35 | | **Total** | **108,744** | **90,059** | [11 Provision for Litigation](index=15&type=section&id=11%20Provision%20for%20Litigation) The Group has recognized a litigation provision of RMB 205.8 million arising from a guarantee liability of its wholly-owned subsidiary in a loan dispute involving Henan Chengqiao (controlled by Mr. Song), where despite a court ruling that the letter of undertaking was invalid, the subsidiary is still liable for 40% of the outstanding debt after collateral realization, and Mr. Song has pledged full compensation for any losses incurred by the Company from this litigation - The Company's wholly-owned subsidiary, Kangqiao Happy Life Services Group Co., Ltd., was sued by a bank for debt assumption in a loan dispute involving Henan Chengqiao, whose controlling shareholder is Mr. Song[28](index=28&type=chunk) - The court ruled that the letter of undertaking issued by the subsidiary as a guarantee was invalid, but due to fault on both the creditor and guarantor, the subsidiary is still liable for **40%** of any remaining debt after the realization of collateral[29](index=29&type=chunk) - As of June 30, 2025, a litigation provision of approximately **RMB 205.8 million** has been recognized, and Mr. Song has undertaken to fully indemnify the Company for any losses it may suffer or incur from this litigation[30](index=30&type=chunk) [12 Dividends](index=16&type=section&id=12%20Dividends) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board does not recommend the declaration of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: same)[31](index=31&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [I. Business Review](index=17&type=section&id=I.%20Business%20Review) In the first half of 2025, the property management industry faced deep transformation and intensified competition, with the company advancing its work around "five enhancements," resulting in a 6.6% year-on-year decrease in total revenue, while GFA under management grew by 6.9% to 46.2 million sq.m., but contracted GFA decreased by 4.0% to 68.3 million sq.m - The property management industry is undergoing a deep transformation towards modern services, with a systemic restructuring of its operating environment and development logic, leading to intensified competition and a strategic shift from scale expansion to efficiency pursuit[32](index=32&type=chunk) - The Group's business encompasses residential, non-residential (e.g., commercial, office buildings, industrial parks, hospitals), and city services (e.g., rail transit hygiene and urban environmental sanitation), covering basic property management, non-owner value-added, community value-added, and city services[32](index=32&type=chunk) - As of June 30, 2025, the Group provided services in **36 cities** with **331 projects** under management, a contracted GFA of approximately **68.3 million sq.m.** (down 4.0% year-on-year), and a GFA under management of approximately **46.2 million sq.m.** (up 6.9% year-on-year)[33](index=33&type=chunk) [(1) Business Overview](index=17&type=section&id=(1)%20Business%20Overview) In the first half of 2025, the Group focused on "five enhancements" to improve customer quality of life, employee dignity, organizational management, corporate resilience, and industry standing, achieving a total revenue of RMB 455.2 million, a 6.6% year-on-year decrease - In the first half of 2025, the Group systematically advanced its work around "five enhancements," including improving customer quality of life, employee dignity, organizational management, corporate resilience, and industry standing[32](index=32&type=chunk) - During the reporting period, the Group's revenue was approximately **RMB 455.2 million**, a **6.6% decrease** compared to the same period in 2024[32](index=32&type=chunk) [(2) Performance of Four Business Segments](index=17&type=section&id=(2)%20Performance%20of%20Four%20Business%20Segments) The Group, a reputable integrated property management service provider and a leader in Henan, ranked 23rd in "2025 China Property Service Top 100," saw its property management services revenue grow by 5.6%, while non-owner and community value-added services revenue significantly declined by 72.3% and 21.3% respectively, and city services revenue increased by 7.3% - The Group was awarded the "2025 China Property Service Top 100" by China Index Academy, with its overall industry strength ranking improving by 2 places to **23rd**[34](index=34&type=chunk) - Property management services revenue was approximately **RMB 353.7 million**, accounting for **77.7%** of total revenue, a **5.6% increase** compared to the same period in 2024[34](index=34&type=chunk) - Non-owner value-added services revenue was approximately **RMB 15.7 million**, a **72.3% decrease** compared to the same period in 2024, primarily due to the contraction of the real estate business[35](index=35&type=chunk) - Community value-added services revenue was approximately **RMB 45.5 million**, a **21.3% decrease** compared to the same period in 2024, mainly due to fluctuations in the consumer market and intensified competition[36](index=36&type=chunk) - City services revenue was approximately **RMB 40.2 million**, a **7.3% increase** compared to the same period in 2024[37](index=37&type=chunk) [II. Outlook and Strategies](index=18&type=section&id=II.%20Outlook%20and%20Strategies) The Group aims to become a provider of better living and smart city services, continuously enhancing its product, organizational, operational, digital technology, and brand capabilities, while adhering to service and operational bottom lines, strategically expanding non-residential property management and city service product lines to achieve balanced development across "Happy Life" (residential property management), "Happy Commercial Management" (non-residential property management), and "Happy City Services" (city services), and increasing market capital value through scale expansion and third-party collaborations - The Group is committed to becoming a provider of better living and smart city services, continuously enhancing its product, organizational, operational, digital technology, and brand capabilities[38](index=38&type=chunk) - Strategically, the Group will horizontally expand its non-residential property management and city services product lines, gradually achieving balanced development across "Happy Life" (residential property management), "Happy Commercial Management" (non-residential property management), and "Happy City Services" (city services)[38](index=38&type=chunk)[39](index=39&type=chunk) - Market capital value will be enhanced through continuous scale expansion, securing contracted GFA, increasing GFA from third-party property developers, expanding the proportion of non-residential property management GFA, and growing city services scale[39](index=39&type=chunk) [III. Financial Review](index=20&type=section&id=III.%20Financial%20Review) The Group's total revenue for the first half of 2025 decreased by 6.6% to RMB 455.2 million, primarily due to significant declines in non-owner and community value-added services, with cost of sales decreasing proportionally, but gross profit margin slightly falling to 21.6%, while profit for the period and profit attributable to owners of the company both significantly decreased, and although current assets and cash and cash equivalents increased, trade receivables collection remained slow, and the Board resolved not to declare an interim dividend - The Group's total revenue was approximately **RMB 455.2 million**, a **6.6% decrease** compared to the same period in 2024, primarily due to the decline in non-owner value-added services and community value-added services revenue[40](index=40&type=chunk) - Profit for the period was approximately **RMB 43.4 million**, an **18.6% decrease** year-on-year; profit attributable to owners of the Company was approximately **RMB 33.5 million**, a **21.8% decrease** year-on-year[56](index=56&type=chunk) - As of June 30, 2025, current assets were approximately **RMB 1,385.1 million**, an increase of approximately **6.6%** compared to 2024[57](index=57&type=chunk)[58](index=58&type=chunk) - Cash and cash equivalents amounted to **RMB 136.2 million**, and restricted cash was **RMB 213.2 million**, totaling **RMB 349.4 million**[58](index=58&type=chunk) - Trade and other receivables amounted to approximately **RMB 997.1 million**, a **6.1% increase** year-on-year, primarily due to the slower collection of some trade receivables in the current economic climate[59](index=59&type=chunk) - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[62](index=62&type=chunk) [Revenue](index=20&type=section&id=Revenue) The Group's total revenue decreased by 6.6% to RMB 455.2 million, with property management services revenue growing by 5.6% to RMB 353.7 million and city services revenue increasing by 7.3% to RMB 40.2 million, while non-owner value-added services revenue significantly declined by 72.3% to RMB 15.7 million and community value-added services revenue decreased by 21.3% to RMB 45.5 million Revenue Contribution by Business Segment (RMB thousand) | Business Segment | 2025 | % | 2024 | % | | :--- | :--- | :--- | :--- | :--- | | Property management services | 353,711 | 77.7 | 335,036 | 68.7 | | Non-owner value-added services | 15,749 | 3.5 | 56,864 | 11.7 | | Community value-added services | 45,534 | 10.0 | 57,887 | 11.9 | | City services | 40,208 | 8.8 | 37,486 | 7.7 | | **Total** | **455,202** | **100.0** | **487,273** | **100.0** | - Property management services revenue increased by **5.6%**, primarily due to the Group's business expansion and an increase in total GFA under management[43](index=43&type=chunk) - Non-owner value-added services revenue decreased by **72.3%**, mainly due to the contraction of the real estate business which has not yet recovered[44](index=44&type=chunk) - Community value-added services revenue decreased by **21.3%**, primarily due to fluctuations in the consumer market and intensified competition, leading to a decline in home living services and asset operation services revenue[45](index=45&type=chunk) - City services revenue increased by **7.3%**, mainly due to an increase in business volume within the city services segment[46](index=46&type=chunk) [Cost of Sales](index=21&type=section&id=Cost%20of%20Sales) During the reporting period, the Group's cost of sales was RMB 356.7 million, a 6.6% decrease from the same period in 2024, primarily due to the contraction of non-owner value-added services - The Group's cost of sales was approximately **RMB 356.7 million**, a decrease of approximately **6.6%** compared to the same period in 2024, primarily due to the contraction of the Group's non-owner value-added services[47](index=47&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's overall gross profit margin slightly decreased by 0.1 percentage points to 21.6%, with property management services gross profit margin slightly down by 0.2 percentage points due to increased landscaping and engineering renovation costs, while non-owner value-added services gross profit margin improved by 5.1 percentage points to 25.5% by actively abandoning low-margin businesses, and community value-added services gross profit margin increased by 1.6 percentage points to 32.1% through enhanced collaboration with upstream suppliers Gross Profit and Gross Profit Margin by Business Segment (RMB thousand, %) | Business Segment | 2025 Gross Profit | 2025 Gross Profit Margin (%) | 2024 Gross Profit | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 74,939 | 21.2 | 71,580 | 21.4 | | Non-owner value-added services | 4,012 | 25.5 | 11,624 | 20.4 | | Community value-added services | 14,603 | 32.1 | 17,648 | 30.5 | | City services | 4,935 | 12.3 | 4,695 | 12.5 | | **Total** | **98,489** | **21.6** | **105,547** | **21.7** | - Property management services gross profit margin decreased by **0.2 percentage points**, primarily due to increased investment in landscaping and engineering renovation costs to ensure service quality[49](index=49&type=chunk) - Non-owner value-added services gross profit margin increased by **5.1 percentage points**, mainly because the Company actively abandoned low-margin businesses with poor collection rates amidst a downturn in the real estate market[49](index=49&type=chunk) - Community value-added services gross profit margin increased by **1.6 percentage points**, primarily due to increased collaboration with upstream suppliers for certain goods[50](index=50&type=chunk) [Other Income](index=22&type=section&id=Other%20Income) The Group's other income was RMB 0.2 million, a significant 95.1% decrease from the same period in 2024, primarily due to reduced government subsidies - The Group's other income was approximately **RMB 0.2 million**, a **95.1% decrease** compared to the same period in 2024, primarily due to a reduction in government subsidies received during the reporting period[52](index=52&type=chunk) [Selling and Marketing Expenses](index=22&type=section&id=Selling%20and%20Marketing%20Expenses) The Group's selling and marketing expenses were RMB 2.5 million, a 41.7% decrease from the same period in 2024, mainly attributable to effective cost control - The Group's selling and marketing expenses were approximately **RMB 2.5 million**, a **41.7% decrease** compared to the same period in 2024, primarily due to the Group's effective cost control[53](index=53&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) The Group's administrative expenses were RMB 21.8 million, a 9.0% decrease from the same period in 2024, also primarily due to effective cost control - The Group's administrative expenses were approximately **RMB 21.8 million**, a **9.0% decrease** compared to the same period in 2024, also primarily due to the Group's effective cost control during the reporting period[54](index=54&type=chunk) [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) The Group's income tax expense was RMB 13.5 million, a 15.2% decrease from the same period in 2024 - The Group's income tax expense was approximately **RMB 13.5 million**, a **15.2% decrease** compared to the same period in 2024[55](index=55&type=chunk) [Profit for the Period](index=22&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period was RMB 43.4 million, an 18.6% year-on-year decrease, with a net profit margin of 9.5%, and profit attributable to owners of the company was RMB 33.5 million, a 21.8% year-on-year decrease - The Group's profit for the period was approximately **RMB 43.4 million**, an **18.6% decrease** compared to the same period in 2024, with a net profit margin of **9.5%**, a **1.4% decrease** compared to the same period in 2024[56](index=56&type=chunk) - Profit attributable to owners of the Company was approximately **RMB 33.5 million**, a **21.8% decrease** compared to the same period in 2024[56](index=56&type=chunk) [Liquidity, Reserves and Capital Structure](index=22&type=section&id=Liquidity%2C%20Reserves%20and%20Capital%20Structure) The Group maintains a sound financial position, with current assets of RMB 1,385.1 million as of June 30, 2025, a 6.6% year-on-year increase, and cash and cash equivalents totaling RMB 349.4 million, while the current ratio remained at 1.8, the asset-liability ratio slightly increased to 49.1%, and the capital-to-debt ratio was 0.4% - As of June 30, 2025, current assets were approximately **RMB 1,385.1 million**, an increase of approximately **6.6%** compared to 2024[57](index=57&type=chunk)[58](index=58&type=chunk) - Cash and cash equivalents amounted to **RMB 136.2 million**, and restricted cash was **RMB 213.2 million**, totaling **RMB 349.4 million**[58](index=58&type=chunk) - The current ratio (current assets divided by current liabilities) was **1.8** (December 31, 2024: same)[58](index=58&type=chunk) - The asset-liability ratio (total liabilities divided by total assets) was **49.1%**, a slight increase from **48.7%** as of December 31, 2024, with a capital-to-debt ratio of **0.4%**[58](index=58&type=chunk) [Trade and Other Receivables](index=23&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, trade and other receivables reached RMB 997.1 million, a 6.1% increase from the end of 2024, primarily due to slower collection of some trade receivables, and the Group has strengthened internal control measures to accelerate collection - As of June 30, 2025, the Group's trade and other receivables amounted to approximately **RMB 997.1 million**, a **6.1% increase** compared to December 31, 2024, primarily due to the slower collection of some trade receivables in the current economic climate[59](index=59&type=chunk) - The Group has strengthened relevant internal control measures to improve the collection progress of trade receivables[59](index=59&type=chunk) [Trade and Other Payables](index=23&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables amounted to RMB 337.7 million, a 3.2% decrease from the end of 2024, primarily due to improved payment efficiency - As of June 30, 2025, the Group's trade and other payables amounted to approximately **RMB 337.7 million**, a **3.2% decrease** compared to December 31, 2024, primarily due to improved payment efficiency for trade and other payables[60](index=60&type=chunk) [Foreign Exchange Risk](index=23&type=section&id=Foreign%20Exchange%20Risk) The Group primarily operates in China, with transactions denominated in RMB, and while RMB depreciation could adversely affect the value of dividends paid to overseas shareholders, the Group currently does not engage in foreign exchange hedging activities but will continue to monitor foreign exchange movements - The Group primarily operates in China, with its transaction currency being RMB, and RMB depreciation may adversely affect the value of any dividends paid to shareholders outside China[61](index=61&type=chunk) - The Group currently does not engage in hedging activities aimed at or intended to manage foreign exchange rate risk but will continue to monitor foreign exchange activities[61](index=61&type=chunk) [Interim Dividends](index=23&type=section&id=Interim%20Dividends) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[62](index=62&type=chunk) [Other Financial Information](index=24&type=section&id=Other%20Financial%20Information) During the reporting period, the Group had no significant contingent liabilities, capital commitments, major acquisitions or disposals, nor did it hold any significant investments, with future plans to use net proceeds from the global offering for acquiring property management and professional service companies, and collaborating with local urban investment companies or property developers - As of June 30, 2025, the Group had not provided other guarantees, except for Dingfeng Property's guarantee for a loan from Wugang Rural Commercial Bank of Henan, which has been compensated by Jiatianda through the transfer of parking spaces[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - As of June 30, 2025, the Group had no significant contingent liabilities or capital commitments[66](index=66&type=chunk) - During the reporting period, the Group had no significant investments, major acquisitions, or disposals of subsidiaries, associates, or joint ventures[67](index=67&type=chunk)[68](index=68&type=chunk) - The Group intends to use the net proceeds from the global offering for acquiring property management companies and professional service companies, and collaborating with local urban investment companies or local property developers through capital injection or forming joint ventures[69](index=69&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) [Overview of Employees and Remuneration Policy](index=25&type=section&id=Overview%20of%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 2,322 employees, with employee benefit expenses totaling RMB 95.6 million, and the company attracts and retains talent through competitive compensation, bonuses, benefits, systematic training, and internal promotion, while fostering fair career opportunities, work-life balance, and a happy culture - As of June 30, 2025, the Group had **2,322 employees** (June 30, 2024: 2,108 employees)[70](index=70&type=chunk) - For the six months ended June 30, 2025, the Group's employee benefit expenses (including directors' remuneration) amounted to **RMB 95.6 million** (same period in 2024: RMB 106.2 million)[70](index=70&type=chunk) - The Group attracts talented employees by offering competitive wages, bonuses, benefits, systematic training opportunities, and internal promotions, while committing to embracing diversity, providing equal career opportunities, promoting work-life balance, and fostering a happy culture[70](index=70&type=chunk) [Use of Proceeds from Global Offering](index=25&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) [Overview of Use of Proceeds from Global Offering](index=25&type=section&id=Overview%20of%20Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the Company's global offering, approximately HKD 628.9 million, are primarily allocated to strategic investments and acquisitions (65%), investment in smart operations and internal management systems (10%), enriching and expanding service and product offerings (15%), and working capital and general corporate purposes (10%), with HKD 25.3 million utilized as of June 30, 2025, and the remaining HKD 310.5 million expected to be fully used by December 2025 Use of Net Proceeds from Global Offering (HKD million) | Use | Percentage Disclosed in Prospectus (Approx.) | Net Proceeds Disclosed in Prospectus | Unutilized Amount as of December 31, 2024 | Actual Amount Utilized During Reporting Period | Unutilized Amount as of June 30, 2025 | Expected Timeline for Utilization of Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Seeking selective strategic investment and acquisition opportunities | 65% | 408.8 | 297.6 | 22.4 | 275.2 | Before December 2025 | | Investing in smart operations and internal management systems | 10% | 62.9 | 35.5 | 2.9 | 32.6 | Before December 2025 | | Enriching and expanding service and product offerings | 15% | 94.3 | 0.6 | 0 | 0.6 | Before December 2025 | | Working capital and other general corporate purposes | 10% | 62.9 | 2.1 | 0 | 2.1 | Before December 2025 | | **Total** | **100%** | **628.9** | **335.8** | **25.3** | **310.5** | | - The total net proceeds from the global offering, approximately **HKD 628.9 million**, are deposited in short-term interest-bearing bank accounts with licensed financial institutions both onshore and offshore[71](index=71&type=chunk)[72](index=72&type=chunk) - The proceeds will continue to be used in accordance with the purposes set out in the prospectus and are expected to be fully utilized by **December 2025**[72](index=72&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Significant Events After Reporting Period](index=26&type=section&id=Significant%20Events%20After%20Reporting%20Period) No significant events occurred for the Group from the end of the reporting period up to the date of this announcement - No significant events occurred for the Group from the end of the reporting period up to the date of this announcement[73](index=73&type=chunk) [Corporate Governance Practices](index=26&type=section&id=Corporate%20Governance%20Practices) The Company is committed to maintaining high standards of corporate governance, having adopted the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules, and complied with all applicable principles and code provisions during the reporting period - The Company has adopted the **Corporate Governance Code** set out in Appendix C1 of the HKEX Listing Rules as its governance code[74](index=74&type=chunk) - During the reporting period, the Company has complied with all applicable principles and code provisions under the Corporate Governance Code[74](index=74&type=chunk) [Standard Code for Securities Transactions by Directors](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code during the reporting period - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** set out in Appendix C3 of the Listing Rules as the code for directors' dealings in the Group's securities[75](index=75&type=chunk) - Each director confirmed that they have complied with the required standards set out in the Model Code throughout the reporting period[75](index=75&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[76](index=76&type=chunk) - As of June 30, 2025, the Company held no treasury shares[76](index=76&type=chunk) [Audit Committee](index=26&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising Mr. Song Gewei, Mr. Huang Runbin (Chairman), and Dr. Fan Yun, is responsible for reviewing financial information, overseeing financial reporting, risk management, and internal control procedures, and has reviewed the Group's unaudited interim condensed consolidated results for the six months ended June 30, 2025, confirming compliance with all applicable accounting principles and disclosure requirements - The Audit Committee members include Non-executive Director Mr. Song Gewei, Independent Non-executive Director Mr. Huang Runbin (Chairman), and Dr. Fan Yun[77](index=77&type=chunk) - The primary responsibilities of the Audit Committee are to review the Company's financial information and oversee the Company's financial reporting system, risk management, and internal control procedures[77](index=77&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated results for the six months ended June 30, 2025, and confirmed their compliance with all applicable accounting principles, standards, and requirements, with adequate disclosures made[77](index=77&type=chunk)[78](index=78&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=27&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report) This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and posted on the aforementioned websites in due course - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.kqysh.com.cn)[79](index=79&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and posted on the aforementioned websites in due course[79](index=79&type=chunk) [Board of Directors](index=27&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises Mr. Song Gewei (Chairman and Non-executive Director), Mr. Dai Wei, Mr. Kang Weiguo, and Ms. Wang Na (Executive Directors), and Mr. Jin Xiaoxian, Dr. Fan Yun, and Mr. Huang Runbin (Independent Non-executive Directors) - As of the date of this announcement, the Board of Directors comprises Mr. Song Gewei (Chairman and Non-executive Director); Executive Directors Mr. Dai Wei, Mr. Kang Weiguo, and Ms. Wang Na; and Independent Non-executive Directors Mr. Jin Xiaoxian, Dr. Fan Yun, and Mr. Huang Runbin[81](index=81&type=chunk)

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, detailing the Group's financial performance, position, and accounting policies [Condensed Consolidated Income Statement](index=1&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, revenue increased by **19.4%** to **HKD 507,944 thousand**, and profit for the period surged by **48.9%** to **HKD 177,781 thousand**, driven by higher gross profit and reduced finance costs Key Data from Condensed Consolidated Income Statement (HKD thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 507,944 | 425,271 | | Cost of sales and services | (179,299) | (167,048) | | Gross profit | 328,645 | 258,223 | | Other income, gains and losses | 22,776 | 18,450 | | Marketing, selling and distribution expenses | (58,847) | (57,850) | | Operating and administrative expenses | (98,789) | (85,558) | | Amortization of intangible assets | (6,068) | (6,068) | | Finance costs | (3,753) | (6,144) | | Profit before tax | 183,969 | 121,053 | | Taxation | (6,188) | (1,646) | | Profit for the period | 177,781 | 119,407 | | Profit attributable to owners of the Company | 172,459 | 116,116 | | Basic earnings per share (HK cents) | 16.4 | 11.0 | - Revenue increased by **19.4%** year-on-year, and profit for the period increased by **48.9%** year-on-year[4](index=4&type=chunk) - Gross profit increased by **27.3%**, and finance costs decreased by **38.9%**[4](index=4&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income increased by **52.9%** to **HKD 174,496 thousand** from **HKD 114,801 thousand** last year, driven by profit growth despite foreign exchange differences from overseas operations shifting from gain to expense Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 177,781 | 119,407 | | Exchange differences arising on translation of foreign operations | (3,332) | 1,603 | | Reclassification of cumulative exchange reserve on disposal/deregistration of a foreign operation | 47 | (6,209) | | Total comprehensive income for the period | 174,496 | 114,801 | | Total comprehensive income attributable to owners of the Company | 169,736 | 111,256 | - Total comprehensive income for the period increased by **52.9%** year-on-year[5](index=5&type=chunk) - Exchange differences arising on translation of foreign operations shifted from a gain of **HKD 1,603 thousand** in 2024 to an expense of **HKD 3,332 thousand** in 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Company's total net assets increased by **9.3%** to **HKD 590,527 thousand** from December 31, 2024, reflecting a significant rise in net current assets, optimized debt structure, and steady growth in shareholders' equity Key Data from Condensed Consolidated Statement of Financial Position (HKD thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current assets | 283,354 | 301,462 | | Current assets | 561,792 | 525,409 | | Current liabilities | (149,922) | (173,107) | | Net current assets | 411,870 | 352,302 | | Non-current liabilities | (104,697) | (113,713) | | Net assets | 590,527 | 540,051 | | Equity attributable to owners of the Company | 555,614 | 501,618 | | Total equity | 590,527 | 540,051 | - Net assets increased by **9.3%** to **HKD 590,527 thousand**[7](index=7&type=chunk) - Net current assets increased by **16.9%** to **HKD 411,870 thousand**[6](index=6&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details key financial information including the basis of preparation, principal accounting policies, revenue composition, segment results, finance costs, taxation, dividends, earnings per share, trade and other receivables/payables, and capital commitments, providing supplementary explanations for understanding the Group's financial performance [General Information and Basis of Preparation](index=5&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Company is an exempted company incorporated in Bermuda with shares listed on the Stock Exchange. The condensed consolidated financial statements are presented in HKD and prepared in accordance with HKAS 34 'Interim Financial Reporting' and applicable disclosure requirements of the Listing Rules - The Company is an exempted company incorporated in Bermuda, with its shares listed on the Stock Exchange[8](index=8&type=chunk) - The financial statements are presented in HKD and prepared in accordance with HKAS 34 and the Listing Rules[8](index=8&type=chunk) [Principal Accounting Policies](index=5&type=section&id=Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies and methods consistent with the Group's annual consolidated financial statements for the year ended December 31, 2024. The application of revised HKFRSs during this interim period had no significant impact on the Group's financial position or performance - The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual consolidated financial statements[9](index=9&type=chunk) - The application of revised HKFRSs had no significant impact on the financial position or performance during this interim period[10](index=10&type=chunk) [Revenue](index=6&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue reached **HKD 507,944 thousand**, a **19.4%** year-on-year increase. Major revenue sources were casino management services (**HKD 382,576 thousand**) and entertainment system sales and leasing (**HKD 125,368 thousand**), with the innovative and renewable energy business ceasing to contribute revenue Revenue Analysis (HKD thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Casino management services | 382,576 | 356,515 | | Entertainment systems (Macau) | 125,021 | 68,144 | | Entertainment systems (Overseas) | 347 | — | | Innovative and renewable energy solutions business | — | 612 | | **Total Revenue** | **507,944** | **425,271** | - Total revenue increased by **19.4%** year-on-year, primarily driven by casino management services and entertainment systems business[11](index=11&type=chunk) - The innovative and renewable energy solutions business has ceased to contribute revenue[11](index=11&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) For the six months ended June 30, 2025, the Group's main operating segments were casino management services and entertainment systems. The service agreement for casino management services will not be renewed after its expiry on December 31, 2025. The innovative and renewable energy solutions business was disposed of during the period - The main operating segments are casino management services, entertainment systems, and the disposed innovative and renewable energy solutions business[12](index=12&type=chunk) - The casino management services agreement for Casino Golden Dragon in Macau will not be renewed or extended after its expiry on December 31, 2025[12](index=12&type=chunk) - The Group has fully disposed of its equity interest in the subsidiary within the innovative and renewable energy solutions business segment[12](index=12&type=chunk) Segment Results (HKD thousands) | Segment | 2025 Revenue | 2025 Results | 2024 Revenue | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Casino management services | 382,576 | 150,702 | 356,515 | 124,480 | | Entertainment systems | 125,368 | 48,509 | 68,144 | 7,876 | | Innovative and renewable energy solutions business | — | — | 612 | (918) | | **Consolidated Total** | **507,944** | **199,211** | **425,271** | **131,438** | Revenue by Business Location (HKD thousands) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Macau | 507,597 | 424,659 | | Mainland China | — | 612 | | Others | 347 | — | | **Total** | **507,944** | **425,271** | Major Customer Revenue Contribution (HKD thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Casino management services | 382,576 | 356,515 | | Entertainment systems | 55,684 | 4,437 | | **Total** | **438,260** | **360,952** | [Finance Costs](index=10&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, total finance costs significantly decreased by **38.9%** to **HKD 3,753 thousand** from **HKD 6,144 thousand** in the prior year, primarily due to lower interest expenses on bank borrowings, shareholder loans, and lease liabilities Finance Costs (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank borrowings | 1,526 | 2,059 | | Interest on shareholder loans | 1,249 | 2,582 | | Interest on lease liabilities | 978 | 1,503 | | **Total** | **3,753** | **6,144** | - Finance costs decreased by **38.9%** year-on-year, primarily due to lower interest expenses on various borrowings[19](index=19&type=chunk) [Profit Before Tax is Stated After Charging](index=11&type=section&id=Profit%20Before%20Tax%20is%20Stated%20After%20Charging) Profit before tax for the period is stated after charging various expenses, including total staff costs of **HKD 63,497 thousand** (**15.6%** year-on-year increase), research and development expenses of **HKD 22,111 thousand** (**45.4%** year-on-year increase), and casino management services commission fees of **HKD 16,278 thousand** (**31.6%** year-on-year decrease), while bank interest income significantly increased Items Charged to Profit Before Tax (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Directors' emoluments | 9,388 | 8,253 | | Total staff costs | 63,497 | 54,922 | | Cost of inventories recognized as expense (included in cost of sales and services) | 26,288 | 23,388 | | Cost of inventories recognized as expense (included in operating and administrative expenses) | 7,555 | 6,596 | | Depreciation of property, plant and equipment | 15,350 | 14,083 | | Depreciation of right-of-use assets | 7,648 | 7,957 | | Commission fees for casino management services | 16,278 | 23,798 | | Research and development expenses | 22,111 | 15,205 | | Bank interest income | 4,245 | 1,096 | | Gain on disposal/deregistration of subsidiaries | 965 | 6,209 | - Total staff costs increased by **15.6%** year-on-year to **HKD 63,497 thousand**[21](index=21&type=chunk) - Research and development expenses significantly increased by **45.4%** year-on-year to **HKD 22,111 thousand**[21](index=21&type=chunk) - Commission fees for casino management services decreased by **31.6%** year-on-year to **HKD 16,278 thousand**[21](index=21&type=chunk) [Taxation](index=12&type=section&id=Taxation) For the six months ended June 30, 2025, taxation expenses significantly increased to **HKD 6,188 thousand** from **HKD 1,646 thousand** in the prior year, primarily due to higher Macau Complementary Tax, while Mainland China and overseas subsidiaries had no tax provision due to absence of taxable profits Taxation Expenses (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Macau Complementary Tax | 5,000 | 250 | | Dividend tax | 1,188 | 1,358 | | PRC Enterprise Income Tax | — | 38 | | **Total** | **6,188** | **1,646** | - Macau Complementary Tax significantly increased due to the expiry of the income exemption period for SJM Resorts' gaming operations[23](index=23&type=chunk) - The Group is applying for an exemption approval for Macau Complementary Tax for the period from January 1, 2023, to December 31, 2025[23](index=23&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Board has resolved to declare an interim dividend of **7.5 HK cents** per share for the six months ended June 30, 2025, an increase from **5.0 HK cents** per share in the prior year. A final dividend of **11.0 HK cents** per share for 2024 was declared and paid during the period - A final dividend of **11.0 HK cents** per share for 2024 was declared and paid, totaling **HKD 115,740 thousand**[27](index=27&type=chunk) - The Board resolved to declare an interim dividend of **7.5 HK cents** per share for 2025, an increase from **5.0 HK cents** per share in the prior year[27](index=27&type=chunk) Dividend Distribution (HKD thousands) | Dividend Type | 2025 | 2024 | | :--- | :--- | :--- | | 2024 Final Dividend (Paid) | 115,740 | — | | 2025 Interim Dividend (Proposed) | 78,914 | 52,609 | [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share significantly increased by **49.1%** to **16.4 HK cents** from **11.0 HK cents** in the prior year, reflecting enhanced company profitability Basic Earnings Per Share (HK cents) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings per share | 16.4 | 11.0 | | Profit attributable to owners of the Company (HKD thousands) | 172,459 | 116,116 | | Weighted average number of shares (thousands) | 1,052,185 | 1,052,185 | - Basic earnings per share increased by **49.1%** year-on-year to **16.4 HK cents**[28](index=28&type=chunk) - No diluted earnings per share is presented as there were no dilutive potential ordinary shares during the period[28](index=28&type=chunk) [Trade and Other Receivables](index=14&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade and other receivables increased by **8.6%** to **HKD 109,982 thousand** from December 31, 2024, with net trade receivables rising to **HKD 71,190 thousand**, of which **94.0%** had the best credit rating and a small proportion of overdue accounts Trade and Other Receivables (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net trade receivables | 71,190 | 53,609 | | Deposits paid | 12,893 | 15,193 | | Amount due from an associate | 2,256 | 2,256 | | Loans receivable | — | 4,126 | | Other receivables | 9,908 | 11,424 | | Prepayments | 3,877 | 4,796 | | **Total** | **109,982** | **101,262** | - Net trade receivables increased to **HKD 71,190 thousand**, with **94.0%** having the best credit rating[30](index=30&type=chunk)[31](index=31&type=chunk) - Overdue trade receivables of **HKD 1,750 thousand** for 90 days or more were not considered in default[31](index=31&type=chunk) Ageing Analysis of Trade Receivables (HKD thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 66,926 | 48,353 | | 31 to 60 days | 285 | 445 | | 61 to 90 days | 2,222 | 304 | | 91 to 180 days | 25 | 2,343 | | 181 to 365 days | 1,693 | 1,027 | | Over 365 days | 39 | 1,137 | | **Total** | **71,190** | **53,609** | [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased by **2.9%** to **HKD 58,125 thousand** from December 31, 2024. Trade payables increased to **HKD 8,019 thousand**, while amounts due to directors and payables for property, plant, and equipment significantly decreased Trade and Other Payables (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 8,019 | 5,009 | | Accrued staff costs | 14,510 | 15,414 | | Accrued promotion expenses | 23,409 | 21,418 | | Amounts due to directors | 1,443 | 5,043 | | Payables for purchase of property, plant and equipment | 273 | 3,269 | | **Total** | **58,125** | **59,867** | - Trade payables increased by **60.1%** year-on-year to **HKD 8,019 thousand**[33](index=33&type=chunk) - Amounts due to directors and payables for purchase of property, plant and equipment significantly decreased[33](index=33&type=chunk) Ageing Analysis of Trade Payables (HKD thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 3,810 | 4,222 | | 31 to 60 days | 3,621 | 255 | | 61 to 90 days | 71 | 62 | | 91 to 365 days | 259 | 175 | | Over 365 days | 258 | 295 | | **Total** | **8,019** | **5,009** | [Capital Commitments](index=16&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital expenditure for property, plant, and equipment was **HKD 840 thousand**, a significant **89.2%** decrease from **HKD 7,812 thousand** on December 31, 2024 Capital Commitments (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted capital expenditure for property, plant and equipment | 840 | 7,812 | - Capital commitments significantly decreased by **89.2%**, reflecting a reduction in future capital expenditure plans[35](index=35&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's detailed discussion of the Group's business and financial performance for the six months ended June 30, 2025, covering an overview of results, segment performance, outlook, liquidity, financial resource management, capital commitments, foreign exchange risk, pledged assets, significant transactions, and updates on employees and directors [Business and Financial Review](index=17&type=section&id=Business%20and%20Financial%20Review) This section reviews the Group's overall business performance for the six months ended June 30, 2025, with significant growth in both total revenue and profit for the period. It details revenue contributions and profitability of each business segment and introduces Adjusted EBITDA as a key operating metric [Overview of Results](index=17&type=section&id=Overview%20of%20Results) For the six months ended June 30, 2025, the Group's total revenue increased by **19.4%** to **HKD 507.9 million**, and profit for the period surged by **48.9%** to **HKD 177.8 million**, primarily driven by increased revenue from Macau casino management services and electronic entertainment equipment sales - Total revenue increased by **19.4%** year-on-year to **HKD 507.9 million**[36](index=36&type=chunk) - Profit for the period increased by **48.9%** year-on-year to **HKD 177.8 million**[37](index=37&type=chunk) Reported Revenue Analysis (HKD millions) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Casino Golden Dragon | 382.6 | 356.5 | | Sales/leasing of electronic entertainment equipment and systems in Macau | 125.0 | 68.2 | | Overseas sales/leasing of electronic entertainment equipment and systems | 0.3 | — | | Innovative and renewable energy solutions business in Mainland China | — | 0.6 | | **Total Reported Revenue** | **507.9** | **425.3** | [Adjusted EBITDA](index=17&type=section&id=Adjusted%20EBITDA) For the six months ended June 30, 2025, Adjusted EBITDA was **HKD 211.8 million**, a **43.4%** year-on-year increase, primarily due to strong performance in Macau casino management services and electronic entertainment equipment and systems segments. Adjusted EBITDA is a non-HKFRS measure used to assess operating performance - Adjusted EBITDA increased by **43.4%** year-on-year to **HKD 211.8 million**[38](index=38&type=chunk) - Adjusted EBITDA is a non-HKFRS measure used to assess operating performance[38](index=38&type=chunk)[39](index=39&type=chunk) Reconciliation of Profit for the Period to Adjusted EBITDA (HKD millions) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 177.8 | 119.4 | | Interest income | (4.3) | (1.4) | | Finance costs | 3.8 | 6.1 | | Taxation | 6.2 | 1.6 | | Depreciation of property, plant and equipment | 15.4 | 14.1 | | Depreciation of right-of-use assets | 7.6 | 8.0 | | Amortization of intangible assets | 6.1 | 6.1 | | Gain on disposal/deregistration of subsidiaries | (1.0) | (6.2) | | Loss on disposal/write-off of property, plant and equipment | 0.7 | — | | Reversal of impairment loss on amount due from a joint venture | (0.4) | — | | Others | (0.1) | — | | **Adjusted EBITDA** | **211.8** | **147.7** | Adjusted EBITDA by Nature (HKD millions) | Business Segment | 2025 | 2024 | | :--- | :--- | :--- | | Casino Golden Dragon | 170.5 | 143.8 | | Electronic entertainment equipment and systems | 48.8 | 11.2 | | Other businesses | 1.3 | 0.2 | | Corporate and other expenses | (8.8) | (7.5) | | **Adjusted EBITDA** | **211.8** | **147.7** | - Casino Golden Dragon's Adjusted EBITDA increased by **18.6%** to **HKD 170.5 million**, primarily due to increased customer traffic and higher gaming revenue from Live Multi-Game terminals[42](index=42&type=chunk) - Adjusted EBITDA for electronic entertainment equipment and systems surged by **335.7%** to **HKD 48.8 million**, mainly due to increased sales revenue in Macau and higher upgrade service income[43](index=43&type=chunk) [Provision of Casino Management Services in Macau](index=19&type=section&id=Provision%20of%20Casino%20Management%20Services%20in%20Macau) For the six months ended June 30, 2025, Casino Golden Dragon's gross gaming revenue increased by **7.2%** year-on-year to **HKD 698.9 million**, driven by the rising popularity of Live Multi-Game terminals and increased customer traffic. The Group's share of total revenue grew by **7.3%** to **HKD 382.6 million** Casino Golden Dragon Operating Data (Average) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Traditional gaming tables | 20 | 20 | | Live Multi-Game (LMG) tables | 10 | 10 | | Live Multi-Game (LMG) terminals | 973 | 956 | | Slot machines and electronic table games | 95 | 95 | Casino Golden Dragon Key Operating Data (HKD millions/HKD thousands/HKD) | Item | Unit | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Gaming revenue from traditional gaming tables | HKD millions | 235.2 | 240.4 | | Gaming revenue from Live Multi-Game (LMG) | HKD millions | 439.7 | 385.6 | | Gaming revenue from slot machines and electronic table games | HKD millions | 24.0 | 25.7 | | **Gross Gaming Revenue** | **HKD millions** | **698.9** | **651.7** | | LMG gaming revenue/per terminal/per day | HKD | 2,497 | 2,216 | | Gaming revenue/per table/per day (total) | HKD thousands | 124.3 | 114.7 | - Casino Golden Dragon's gross gaming revenue increased by **7.2%** year-on-year to **HKD 698.9 million**[46](index=46&type=chunk) - The Group's share of Casino Golden Dragon's total revenue increased by **7.3%** year-on-year to **HKD 382.6 million**[47](index=47&type=chunk) [Development, Sales and Leasing of Electronic Entertainment Equipment and Systems and Royalty Income](index=21&type=section&id=Development%2C%20Sales%20and%20Leasing%20of%20Electronic%20Entertainment%20Equipment%20and%20Systems%20and%20Royalty%20Income) For the six months ended June 30, 2025, Macau electronic entertainment equipment and systems sales/leasing revenue surged by **83.3%** year-on-year to **HKD 125.0 million**, driven by increased demand for Live Multi-Game terminals and higher upgrade service income. Overseas markets also began contributing revenue - Macau electronic entertainment equipment and systems sales/leasing revenue increased by **83.3%** year-on-year to **HKD 125.0 million**[48](index=48&type=chunk) - Revenue growth was primarily driven by sales of gaming machines (**HKD 77.0 million**), other entertainment equipment and systems (**HKD 25.1 million**), and upgrade services for Live Multi-Game terminals (**HKD 21.6 million**)[50](index=50&type=chunk) - Overseas markets (Asia and North America) began contributing **HKD 300 thousand** in revenue, as the Group actively expands into these markets[49](index=49&type=chunk)[51](index=51&type=chunk) - No royalty income from licensees was recognized during the period[52](index=52&type=chunk) [Innovative and Renewable Energy Solutions Business in Mainland China](index=22&type=section&id=Innovative%20and%20Renewable%20Energy%20Solutions%20Business%20in%20Mainland%20China) The Group has strategically decided to exit the innovative and renewable energy solutions business in Mainland China, disposing of its entire equity interest in the relevant subsidiaries during the period and recognizing a gain on disposal of **HKD 1.0 million**. This move aims to allow the Group to focus on its core gaming business - The Group has decided to cease its innovative and renewable energy solutions business in Mainland China[53](index=53&type=chunk) - The entire equity interest in the relevant subsidiaries was disposed of, recognizing a gain on disposal of **HKD 1.0 million**[53](index=53&type=chunk) - This strategic move aims to allow the Group to focus on its core gaming business and optimize resources[53](index=53&type=chunk) [Outlook](index=22&type=section&id=Outlook) The Group will continue to focus on the casino mass market, enhancing competitiveness through investment in innovative technology and advanced electronic entertainment equipment. Macau's tourism recovery, relaxed individual visit scheme visas, and improved transportation will stimulate visitor demand. Despite the non-renewal of the Casino Golden Dragon management services agreement, the Group will actively explore new opportunities in Macau and international markets, leveraging AI to accelerate game development - The Group will focus on the casino mass market through strategic investments in innovative technology and the development of advanced electronic entertainment equipment[54](index=54&type=chunk) - Macau's tourism recovery, relaxed individual visit scheme visas, and improved transportation (e.g., Light Rail extension to Hengqin Port) will stimulate visitor demand[54](index=54&type=chunk) - Live Multi-Game terminals are increasingly important in Macau's gaming industry, with their share of gaming revenue rising to **2.1%** in H1 2025, a **22.5%** year-on-year increase[55](index=55&type=chunk)[56](index=56&type=chunk) - The Group will expand its game product line, launching new games like 'Super Bull' and 'Dragon Tiger Fight', and leverage AI to accelerate game design and development[57](index=57&type=chunk) - A new production line in Macau commenced operations on April 15, 2025, focusing on entertainment equipment manufacturing, with exports already reaching international markets[58](index=58&type=chunk) - The Group will actively expand into emerging gaming markets outside Macau, such as the Philippines, Sri Lanka, and Malaysia[59](index=59&type=chunk) - The Casino Golden Dragon management services agreement will not be renewed after its expiry on December 31, 2025, which is expected to significantly reduce the Group's revenue and profit attributable to shareholders[60](index=60&type=chunk) - The Group will continue to explore new opportunities in Macau and international markets, strengthening strategic partnerships and expanding its business footprint[61](index=61&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a prudent financial management approach and a robust liquidity position. As of June 30, 2025, consolidated net assets increased by **9.3%** to **HKD 590.5 million**, primarily due to profit for the period. The gearing ratio decreased to **21.4%**, reflecting improved financial leverage [Pledged Bank Deposits and Bank Balances and Cash](index=24&type=section&id=Pledged%20Bank%20Deposits%20and%20Bank%20Balances%20and%20Cash) As of June 30, 2025, the Group held pledged bank deposits of **HKD 49.8 million** and bank balances and cash of **HKD 417.8 million**, both increasing from December 31, 2024. Bank balances are primarily denominated in HKD, MOP, and USD, with normal exchange rate risk Bank Deposits and Cash (HKD millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Pledged bank deposits | 49.8 | 48.1 | | Bank balances and cash | 417.8 | 389.2 | - Bank balances and cash are primarily denominated in HKD, MOP, and USD, with normal exchange rate risk[65](index=65&type=chunk) [Shareholder Loans](index=25&type=section&id=Shareholder%20Loans) As of June 30, 2025, the outstanding principal of the three-year term loan from Dr. Chan was **HKD 14.2 million**, a significant decrease from **HKD 25.6 million** on December 31, 2024, bearing interest at an annual rate of **12.5%** - The outstanding principal of the shareholder loan from Dr. Chan was **HKD 14.2 million**, a **44.5%** year-on-year decrease[66](index=66&type=chunk) - The loan is unsecured, bears interest at an annual rate of **12.5%**, and is repayable in monthly installments[66](index=66&type=chunk) [Borrowings and Gearing Ratio](index=25&type=section&id=Borrowings%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's total outstanding debt was **HKD 126.1 million**, a **19.6%** decrease from December 31, 2024. The gearing ratio decreased to **21.4%**, primarily due to reduced total borrowings and increased net assets Total Outstanding Debt (HKD millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Secured and unsecured bank borrowings | 110.2 | 115.6 | | Unsecured and unguaranteed shareholder loans | 14.2 | 25.6 | | Unsecured and unguaranteed other borrowings | 0.2 | 10.5 | | Unsecured and unguaranteed amounts due to directors | 1.5 | 5.0 | | **Total** | **126.1** | **156.7** | - Total outstanding debt decreased by **19.6%** year-on-year to **HKD 126.1 million**[67](index=67&type=chunk) - The gearing ratio decreased to **21.4%** (December 31, 2024: **29.0%**), primarily due to reduced total borrowings and increased net assets[68](index=68&type=chunk) - The reduction in total borrowings was mainly due to the transfer of other borrowings following the disposal of the innovative and renewable energy business subsidiary, and the repayment of bank and shareholder loans[68](index=68&type=chunk) [Capital Commitments](index=26&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments for property, plant, and equipment were **HKD 800 thousand**, a significant decrease from December 31, 2024. These commitments will be financed by the Group's internal resources Capital Commitments (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted capital expenditure for property, plant and equipment | 800 | 7,800 | - Capital commitments significantly decreased and will be financed by internal resources[71](index=71&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) Most of the Group's income, expenses, deposits, and borrowings are denominated in HKD, MOP, and USD. Due to the stable exchange rates of these currencies, the Group deems no specific hedging necessary. The Group faces net foreign exchange risk from RMB and manages it by closely monitoring exchange rate fluctuations - Most of the Group's operations are denominated in HKD, MOP, and USD, with normal exchange rate risk, requiring no specific hedging[72](index=72&type=chunk) - The Group faces net foreign exchange risk from RMB, which is managed by closely monitoring exchange rate fluctuations[72](index=72&type=chunk) [Pledged Assets of the Group](index=26&type=section&id=Pledged%20Assets%20of%20the%20Group) As of June 30, 2025, the Group's pledged assets included leasehold land and buildings with a total carrying amount of **HKD 181.4 million**, and bank time deposits of **HKD 49.8 million**, primarily used as collateral for bank borrowings and guarantees for SJM Resorts Pledged Assets (HKD millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Leasehold land and buildings (total carrying amount) | 181.4 | 185.1 | | Bank time deposits | 49.8 | 48.1 | - Pledged assets are primarily used as collateral for bank borrowings and guarantees for SJM Resorts[75](index=75&type=chunk) [Significant Acquisitions, Disposals and Material Investments](index=26&type=section&id=Significant%20Acquisitions%2C%20Disposals%20and%20Material%20Investments) Except for the disposal of the innovative and renewable energy solutions business disclosed in this interim results announcement, the Group made no other significant acquisitions, disposals, or material investments for the six months ended June 30, 2025 - Aside from the disposal of the innovative and renewable energy solutions business, there were no other significant acquisitions, disposals, or investments during the period[74](index=74&type=chunk) [Future Plans for Material Investments or Capital Assets](index=27&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the date of this interim results announcement, the Group has no other future plans for material investments or capital assets, apart from the disclosed capital commitments - Apart from the disclosed capital commitments, the Group has no other future plans for material investments or capital assets[76](index=76&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had approximately **760** employees, with total staff costs of **HKD 132.1 million**, a **14.6%** year-on-year increase. The Group's remuneration policy is based on employee qualifications, capabilities, performance, and market trends, offering discretionary bonuses and other benefits - The Group has approximately **760** employees, with about **400** engaged in gaming operations at Casino Golden Dragon[77](index=77&type=chunk) - Total staff costs amounted to **HKD 132.1 million**, a **14.6%** year-on-year increase[77](index=77&type=chunk) - The remuneration policy is based on qualifications, capabilities, performance, market trends, and operating results, offering discretionary bonuses, share options, and retirement benefits[77](index=77&type=chunk) [Issue of Equity Securities for Cash](index=27&type=section&id=Issue%20of%20Equity%20Securities%20for%20Cash) For the six months ended June 30, 2025, the Company did not issue any equity securities for cash or dispose of any treasury shares - No equity securities were issued or treasury shares disposed of for cash during the period[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Shares) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, redeemed, or cancelled any of the Company's listed securities - No listed securities of the Company were purchased, sold, redeemed, or cancelled during the period[79](index=79&type=chunk) [Update on Directors' Information](index=27&type=section&id=Update%20on%20Directors%27%20Information) Executive Director Mr. Shan Shiyong's monthly salary was revised to **HKD 500,000** effective January 1, 2025. Mr. Zhang Jianjun resigned as Executive Director and Co-Chairman on March 27, 2025, and Dr. Chan was re-designated as Chairman of the Board - Executive Director Mr. Shan Shiyong's monthly salary was revised to **HKD 500,000** effective January 1, 2025[81](index=81&type=chunk) - Mr. Zhang Jianjun resigned as Executive Director and Co-Chairman on March 27, 2025[81](index=81&type=chunk) - Dr. Chan was re-designated from Co-Chairman to Chairman of the Board[81](index=81&type=chunk) [Corporate Governance and Other Information](index=28&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the Company's corporate governance practices during the reporting period, including compliance with the Corporate Governance Code and Model Code, as well as the review process for the interim report and post-reporting period events [Compliance with the Corporate Governance Code](index=28&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company has complied with the Corporate Governance Code throughout the period, except for Code Provision C.2.1 (separation of roles of chairman and chief executive). Dr. Chan serves as both Chairman and Managing Director, a structure the Board believes is in the best interests of shareholders and will be reviewed in due course - The Company complied with the Corporate Governance Code, except for Code Provision C.2.1 (separation of roles of chairman and chief executive)[83](index=83&type=chunk) - Dr. Chan serves as both Chairman and Managing Director, a structure the Board believes provides strong and consistent leadership[84](index=84&type=chunk) - The Board will review the current structure in due course[84](index=84&type=chunk) [Compliance with the Model Code](index=28&type=section&id=Compliance%20with%20the%20Model%20Code) Following inquiries with all Directors, each has confirmed compliance with the Model Code as set out in Appendix C3 of the Listing Rules for the six months ended June 30, 2025 - All Directors have confirmed compliance with the Model Code for the six months ended June 30, 2025[85](index=85&type=chunk) [Review of the 2025 Interim Report and Unaudited Condensed Consolidated Financial Statements for the Six Months Ended June 30, 2025](index=28&type=section&id=Review%20of%20the%202025%20Interim%20Report%20and%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) The 2025 Interim Report and unaudited condensed consolidated financial statements have been reviewed by the Board's Audit Committee and by Deloitte Touche Tohmatsu, the independent auditor, in accordance with Hong Kong Standard on Review Engagements 2410 - The interim report and financial statements have been reviewed by the Audit Committee[86](index=86&type=chunk) - Deloitte Touche Tohmatsu, the independent auditor, has reviewed the financial statements[86](index=86&type=chunk) [Events After the Reporting Period](index=28&type=section&id=Events%20After%20the%20Reporting%20Period) Except for those disclosed elsewhere in this interim results announcement, no significant events occurred after June 30, 2025, up to the date of this interim results announcement that require disclosure - No other significant events after the reporting period require disclosure[87](index=87&type=chunk) [Definitions](index=29&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in the report, ensuring readers have a clear understanding of the content - Definitions are provided for key terms such as 'Adjusted EBITDA', 'Corporate Governance Code', and 'Live Multi-Game terminals'[88](index=88&type=chunk)[90](index=90&type=chunk) [Board of Directors Information](index=30&type=section&id=Board%20of%20Directors%20Information) This section lists the Company's Executive Directors and Independent Non-executive Directors as of the announcement date, including Dr. Chan Chip, Chairman and Managing Director - Lists the Company's Executive Directors as Dr. Chan Chip (Chairman and Managing Director) and Mr. Shan Shiyong[89](index=89&type=chunk) - Lists the Company's Independent Non-executive Directors as Mr. Li Chung Yeung, Ms. Tang Kiu Sum, and Dr. Liu Ka Ying[89](index=89&type=chunk)

[Company Information and Financial Summary](index=1&type=section&id=Company%20Information%20and%20Financial%20Summary) [Company Overview](index=1&type=section&id=Company%20Overview) Horizon Robotics, an investment holding company registered in the Cayman Islands, primarily offers automotive and non-automotive solutions, and was listed on the HKEX in October 2024 - Horizon Robotics was incorporated on July 21, 2015, in the Cayman Islands as an investment holding company, primarily providing automotive solutions for passenger vehicles and non-automotive solutions[51](index=51&type=chunk) - The company completed its initial public offering on October 24, 2024, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[51](index=51&type=chunk) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) For the six months ended June 30, 2025, revenue grew by 67.6% to RMB 1.567 billion, and gross profit increased by 38.6% to RMB 1.024 billion, despite expanded operating and net losses Financial Performance Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,566,756 | 934,599 | 67.6% | | Gross Profit | 1,023,972 | 738,738 | 38.6% | | Operating Loss | (1,592,102) | (1,105,418) | 44.0% | | Loss for the Period | (5,232,979) | (5,098,105) | 2.6% | | Adjusted Operating Loss | (1,111,261) | (823,980) | 34.9% | | Adjusted Net Loss | (1,332,500) | (803,941) | 65.7% | [Business Review and Outlook](index=2&type=section&id=Business%20Review%20and%20Outlook) [Business Review During the Reporting Period](index=2&type=section&id=Business%20Review%20During%20the%20Reporting%20Period) In H1 2025, the company achieved double-digit shipment growth, maintained a leading position in advanced driver-assistance systems, and expanded into overseas markets, driven by strong domestic auto sales and increased ADAS penetration - In H1 2025, the market share of Chinese domestic auto brands exceeded **63%**, with ADAS penetration increasing from **51%** at the end of 2024 to **59%**[4](index=4&type=chunk) - The sales proportion of vehicles equipped with mid-to-high-level ADAS functions increased from **20%** at the end of 2024 to **32%** in H1 2025[4](index=4&type=chunk) [Market Position and Shipments](index=2&type=section&id=Market%20Position%20and%20Shipments) The company maintained its leading market share in basic and overall ADAS solutions in China, with a doubling of Journey series processing hardware shipments in H1 2025 - In H1 2025, the company maintained its leading market share among Chinese automakers for basic ADAS solutions and overall ADAS solutions, at **45.8%** and **32.4%** respectively[4](index=4&type=chunk) - During the reporting period, the company's automotive-grade Journey series processing hardware shipments reached **1.98 million units**, a **doubling year-on-year**, with hardware supporting highway ADAS functions accounting for **980,000 units**, six times that of the prior year, representing **49.5%** of total shipments[4](index=4&type=chunk) [Model Design Wins and Overseas Expansion](index=2&type=section&id=Model%20Design%20Wins%20and%20Overseas%20Expansion) The company secured nearly 400 new model design wins, including over 100 for highway ADAS, and expanded into overseas markets with two Japanese automakers, projecting over 7.5 million units in lifetime shipments - As of the end of the reporting period, the company had accumulated nearly **400 new model design wins**, with over **100 models** featuring highway ADAS or higher functions[4](index=4&type=chunk) - The company has secured model design wins with two Japanese automakers for markets outside China, projected to bring over **7.5 million units** in lifetime shipments[4](index=4&type=chunk) - Including Volkswagen, **9 domestic joint venture automakers** have designated the company's solutions for **30 models**, with some scheduled for mass production by the end of this year[4](index=4&type=chunk) [Revenue and Gross Margin Performance](index=3&type=section&id=Revenue%20and%20Gross%20Margin%20Performance) In H1 2025, the company's revenue reached RMB 1.567 billion, a 67.6% year-on-year increase, with a gross margin of 65.4%, demonstrating steady operational efficiency improvement after excluding cloud computing costs - In H1 2025, the company's revenue reached **RMB 1,566.8 million**, a **67.6% year-on-year increase**, with a gross margin of **65.4%**[5](index=5&type=chunk) - Operating efficiency steadily improved after excluding cloud computing costs for model training[5](index=5&type=chunk) [R&D Investment and Strategic Transformation](index=3&type=section&id=R%26D%20Investment%20and%20Strategic%20Transformation) The company strategically increased cloud service R&D expenditure, resulting in an adjusted operating loss of RMB 1.111 billion, to advance its Horizon SuperDrive (HSD) solution and capitalize on structural changes in the ADAS market - The company strategically increased cloud service-related R&D expenditure, recording an adjusted operating loss of **RMB 1,111.3 million**, to advance the development of its full-scenario urban ADAS solution, Horizon SuperDrive (HSD)[5](index=5&type=chunk) - The company believes this investment will help seize structural changes in the ADAS market and accelerate its transformation into a full-industry infrastructure for the intelligent driving era[5](index=5&type=chunk) [Products and Solutions](index=3&type=section&id=Products%20and%20Solutions) The company achieved revenue growth through its licensing and services business and strong automotive product solutions, driven by increased shipments and higher per-vehicle value - The company generates revenue through its licensing and services business and automotive product solutions[7](index=7&type=chunk)[9](index=9&type=chunk) [Licensing and Services Business](index=3&type=section&id=Licensing%20and%20Services%20Business) The licensing and services business achieved steady growth, with revenue reaching RMB 738.5 million, as the company licensed algorithms and software to over 30 automotive manufacturers and ecosystem partners - Revenue from the licensing and services business reached **RMB 738.5 million**, a **6.9% year-on-year increase**, maintaining steady growth[7](index=7&type=chunk) - The company licenses algorithms and software and provides design and technical services to over **30 automakers** and ecosystem partners[7](index=7&type=chunk) [Automotive Product Solutions](index=3&type=section&id=Automotive%20Product%20Solutions) Automotive product solutions revenue surged by 250.0% to RMB 777.8 million, with 80% contributed by highway ADAS solutions, demonstrating sustainable growth from both volume and value increases - Revenue from automotive products and solutions reached **RMB 777.8 million**, a **250.0% year-on-year increase**[9](index=9&type=chunk) - **80%** of this revenue was contributed by solutions supporting highway ADAS functions, demonstrating sustainable growth driven by both volume and average selling price increases[9](index=9&type=chunk) [Recent Developments After the Reporting Period](index=3&type=section&id=Recent%20Developments%20After%20the%20Reporting%20Period) Post-reporting period, the company achieved significant milestones, including over 10 million cumulative shipments of Journey series hardware and the successful power-up of Journey 6B, while actively developing its HSD solution - As of August 2025, cumulative shipments of Journey series processing hardware exceeded **10 million units**, making the company the first intelligent driving technology company in China to achieve this milestone[10](index=10&type=chunk) - The Journey 6B processing hardware has been successfully powered up, featuring a highly integrated design that doubles the performance of front-view integrated ADAS systems while reducing system cost, power consumption, and size[10](index=10&type=chunk) - The company is actively developing its Horizon SuperDrive (HSD) full-scenario urban ADAS solution, having secured design wins with multiple OEMs covering over **ten models**, with mass production planned for H2 2025[9](index=9&type=chunk) [Industry Trends and Future Outlook](index=4&type=section&id=Industry%20Trends%20and%20Future%20Outlook) The company anticipates accelerated adoption of urban ADAS solutions due to decreasing prices, creating opportunities for HSD, and plans to collaborate with robotaxi operators while deepening innovation and global expansion - The price range for models equipped with urban ADAS solutions is expected to decrease to **RMB 150,000**, accelerating the popularization of urban ADAS[11](index=11&type=chunk) - The evolution of intelligent driving technology from L2 to L4 is evident, and the company expects to collaborate with robotaxi operating companies in H2 to provide technical infrastructure[11](index=11&type=chunk) - The company will continue to deepen innovation and open collaboration, adhere to a software-hardware integrated development path, increase investment in intelligent driving software, and expand its global business footprint[11](index=11&type=chunk) [Detailed Financial Performance Analysis](index=5&type=section&id=Detailed%20Financial%20Performance%20Analysis) [Analysis of Key Income Statement Items](index=5&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) During the reporting period, revenue significantly increased, but substantial rises in cost of sales, R&D, administrative, and sales and marketing expenses led to expanded operating and net losses, with fair value changes of preferred shares being a major factor Comparison of Key Income Statement Items for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,566,756 | 934,599 | 67.6% | | Cost of Sales | (542,784) | (195,861) | 177.1% | | Gross Profit | 1,023,972 | 738,738 | 38.6% | | R&D Expenses | (2,300,002) | (1,419,656) | 62.0% | | Administrative Expenses | (307,157) | (243,144) | 26.3% | | Sales and Marketing Expenses | (272,106) | (198,421) | 37.1% | | Operating Loss | (1,592,102) | (1,105,418) | 44.0% | | Loss for the Period | (5,232,979) | (5,098,105) | 2.6% | [Revenue Composition and Growth](index=6&type=section&id=Revenue%20Composition%20and%20Growth) Total revenue increased by 67.6% to RMB 1.567 billion for the six months ended June 30, 2025, driven primarily by a 250.0% surge in automotive product solutions revenue and stable growth in licensing and services - For the six months ended June 30, 2025, total revenue increased by **67.6%** year-on-year to **RMB 1,566.8 million**[13](index=13&type=chunk) Revenue Composition for the Six Months Ended June 30, 2025 | Revenue Source | 2025 (RMB '000) | Share (%) | 2024 (RMB '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Automotive Product Solutions | 777,848 | 49.7% | 222,264 | 23.8% | | Licensing and Services Business | 738,484 | 47.1% | 690,830 | 73.9% | | Non-Automotive Solutions | 50,424 | 3.2% | 21,505 | 2.3% | | **Total Revenue** | **1,566,756** | **100%** | **934,599** | **100%** | - Revenue from automotive product solutions increased by **250.0%** year-on-year to **RMB 777.8 million**, primarily due to a doubling of delivery volume and an increase in average selling price[15](index=15&type=chunk) - Revenue from the licensing and services business increased by **6.9%** year-on-year to **RMB 738.5 million**, maintaining stable growth[15](index=15&type=chunk) [Cost of Sales, Gross Profit, and Gross Margin](index=6&type=section&id=Cost%20of%20Sales%2C%20Gross%20Profit%2C%20and%20Gross%20Margin) Cost of sales increased by 177.1% to RMB 542.8 million, leading to a 38.6% rise in gross profit to RMB 1.024 billion, but the overall gross margin declined to 65.4% due to a higher proportion of automotive product solutions revenue - Cost of sales increased by **177.1%** year-on-year to **RMB 542.8 million**, primarily driven by increased costs for automotive product solutions and employee benefits[14](index=14&type=chunk) - Gross profit increased by **38.6%** year-on-year to **RMB 1,024.0 million**[16](index=16&type=chunk) - Overall gross margin decreased from **79.0%** in the same period of 2024 to **65.4%** in 2025, mainly due to a significant increase in the proportion of automotive product solutions revenue, despite an improvement in its own gross margin[16](index=16&type=chunk) Automotive Solutions Gross Profit and Gross Margin for the Six Months Ended June 30, 2025 | Business Line | 2025 Gross Profit (RMB '000) | 2025 Gross Margin (%) | 2024 Gross Profit (RMB '000) | 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Automotive Product Solutions | 354,745 | 45.6% | 92,745 | 41.7% | | Licensing and Services Business | 662,607 | 89.7% | 642,188 | 93.0% | | **Total** | **1,017,352** | **67.1%** | **734,933** | **80.5%** | [Operating Expenses](index=8&type=section&id=R%26D%20Expenses%2C%20Administrative%20Expenses%2C%20Sales%20and%20Marketing%20Expenses) R&D expenses increased by 62.0% to RMB 2.3 billion, administrative expenses by 26.3% to RMB 307.2 million, and sales and marketing expenses by 37.1% to RMB 272.1 million, primarily due to higher employee benefits, cloud service fees, and promotional activities - R&D expenses increased by **62.0%** year-on-year to **RMB 2,300.0 million**, primarily due to increased cloud service fees, technical service procurement, and share-based payments for R&D personnel[19](index=19&type=chunk) - Administrative expenses increased by **26.3%** year-on-year to **RMB 307.2 million**, primarily due to increased employee benefits (including share-based payments) for administrative personnel[19](index=19&type=chunk) - Sales and marketing expenses increased by **37.1%** year-on-year to **RMB 272.1 million**, primarily due to increased employee benefits (including share-based payments) for sales and marketing personnel and promotional expenses[19](index=19&type=chunk) [Other Income and Gains](index=8&type=section&id=Other%20Income%2C%20Net%20Other%20Gains) Other income significantly increased to RMB 216.7 million, driven by R&D milestones and government subsidies, while net other gains rose to RMB 61.2 million from wealth management product returns and fair value gains on financial assets - Other income significantly increased to **RMB 216.7 million**, primarily driven by the achievement of key R&D milestones and government subsidy programs[20](index=20&type=chunk) - Net other gains increased to **RMB 61.2 million**, primarily driven by returns from wealth management products and fair value gains on financial assets at fair value through profit or loss[20](index=20&type=chunk) [Net Finance Income and Share of Results of Investments](index=8&type=section&id=Net%20Finance%20Income%2C%20Share%20of%20Results%20of%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method) Net finance income decreased to RMB 170.1 million due to lower bank deposit interest, while the share of losses from investments accounted for using the equity method increased to RMB 400.1 million, mainly from increased losses in Coolride - Net finance income decreased to **RMB 170.1 million**, primarily due to lower interest income from bank deposits[20](index=20&type=chunk) - Share of losses from investments accounted for using the equity method increased to **RMB 400.1 million**, primarily attributable to increased losses from Coolride[20](index=20&type=chunk) [Fair Value Changes of Preferred Shares and Other Financial Liabilities](index=8&type=section&id=Fair%20Value%20Changes%20of%20Preferred%20Shares%20and%20Other%20Financial%20Liabilities) The company recorded a loss of RMB 3.407 billion from fair value changes of preferred shares and other financial liabilities, mainly due to fluctuations in the share price of convertible loans issued to Coolride - Fair value changes of preferred shares and other financial liabilities resulted in a loss of **RMB 3,406.7 million**, primarily due to fair value changes arising from share price fluctuations of convertible loans issued to Coolride[21](index=21&type=chunk) [Loss for the Period and Loss Per Share](index=9&type=section&id=Loss%20for%20the%20Period%2C%20Loss%20Per%20Share) The loss for the period slightly expanded to RMB 5.233 billion, with basic and diluted loss per share at RMB (0.42), while share-based payments increased significantly due to additional grants and rising share prices - Loss for the period was **RMB 5,233.0 million**, a slight increase from the loss of **RMB 5,098.1 million** in the prior year period[22](index=22&type=chunk) - Basic and diluted loss per share were both **RMB (0.42)**, compared to **RMB (1.81)** in the prior year period[60](index=60&type=chunk) - Share-based payments increased by **105.0%** year-on-year to **RMB 493.3 million**, primarily due to additional grants of incentive shares and rising share prices[22](index=22&type=chunk) [Non-IFRS Measures](index=9&type=section&id=Non-IFRS%20Measures) The company uses adjusted operating loss and adjusted net loss as non-IFRS measures to better reflect core business performance by excluding non-cash or non-recurring items like share-based payments and fair value changes of preferred shares - Adjusted operating loss was **RMB 1,111.3 million**, and adjusted net loss was **RMB 1,332.5 million**[22](index=22&type=chunk)[23](index=23&type=chunk) - Non-IFRS measures adjust operating loss and loss for the period by adding back share-based payments, non-recurring fundraising expenses, and fair value changes of preferred shares and other financial liabilities[24](index=24&type=chunk) - These metrics help identify underlying business trends and enhance understanding of the company's performance and prospects, but should not replace financial data under IFRS[25](index=25&type=chunk) [Financial Position and Liquidity](index=10&type=section&id=Financial%20Position%20and%20Liquidity) [Liquidity and Funding Sources](index=10&type=section&id=Liquidity%20and%20Funding%20Sources) As of June 30, 2025, cash and cash equivalents increased by 4.5% to RMB 16.1 billion, with funding primarily sourced from financing and operating activities - As of June 30, 2025, cash and cash equivalents increased by **4.5%** to **RMB 16.1 billion** from **RMB 15.4 billion** as of December 31, 2024[26](index=26&type=chunk) - The company primarily funds its cash requirements through cash generated from financing and operating activities[26](index=26&type=chunk) [Asset and Liability Ratio](index=10&type=section&id=Asset%20and%20Liability%20Ratio) As of June 30, 2025, both total assets and total liabilities increased, resulting in a rise in the asset-liability ratio to 51.2% - As of June 30, 2025, total assets were **RMB 23,420,746 thousand**, and total liabilities were **RMB 11,996,953 thousand**[49](index=49&type=chunk)[50](index=50&type=chunk) - The asset-liability ratio increased from **41.5%** as of December 31, 2024, to **51.2%** as of June 30, 2025[31](index=31&type=chunk) - Total trade receivables increased from **RMB 771,466 thousand** as of December 31, 2024, to **RMB 1,194,611 thousand** as of June 30, 2025[60](index=60&type=chunk) - Total trade payables increased from **RMB 14,552 thousand** as of December 31, 2024, to **RMB 87,953 thousand** as of June 30, 2025[63](index=63&type=chunk) [Capital Commitments and Contingent Liabilities](index=10&type=section&id=Contingent%20Liabilities%2C%20Capital%20Commitments) As of June 30, 2025, the company's capital commitments primarily related to capital expenditures for intangible assets, property, plant, and equipment, and commitments to associates and joint ventures, with no significant contingent liabilities - As of June 30, 2025, capital commitments amounted to **RMB 191.1 million**, primarily related to capital expenditures for intangible assets, property, plant, and equipment[34](index=34&type=chunk) - Commitments to associates and joint ventures amounted to **RMB 1,501.0 million**[34](index=34&type=chunk) - As of June 30, 2025, the company had no significant contingent liabilities[33](index=33&type=chunk) [Other Significant Information](index=10&type=section&id=Other%20Significant%20Information) [Employees and Remuneration](index=11&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the company's full-time employee count increased to 2,177, with total employee remuneration expenses rising year-on-year, encompassing salaries, bonuses, social insurance, and share-based payments - As of June 30, 2025, the company had **2,177 full-time employees**, an increase from **2,078** as of December 31, 2024[35](index=35&type=chunk) - Total employee remuneration expenses (including share-based payments) amounted to **RMB 1,460.4 million**, an increase year-on-year[35](index=35&type=chunk) - Remuneration primarily includes salaries, bonuses, social insurance contributions, and other benefits, and is linked to performance[35](index=35&type=chunk) [Corporate Governance](index=11&type=section&id=Corporate%20Governance) The company is committed to high corporate governance standards and generally complies with the HKEX Corporate Governance Code, with minor deviations regarding the Chairman and CEO roles and board meeting notice periods - The company is committed to achieving high corporate governance standards and complies with all applicable code provisions of the HKEX Corporate Governance Code[36](index=36&type=chunk)[37](index=37&type=chunk) - A deviation from Code Provision C.2.1 exists, where Dr. Kai Yu serves as both Chairman and Chief Executive Officer, an arrangement the Board believes ensures consistent leadership and decision-making efficiency[37](index=37&type=chunk) - A deviation from Code Provision C.5.3 occurred where notice for regular Board meetings was sometimes less than 14 days, but no director objected[38](index=38&type=chunk) - Directors and relevant employees consistently complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[39](index=39&type=chunk) - The Audit Committee has reviewed the interim financial statements and concurred with the accounting treatments, deeming them compliant with applicable accounting standards and legal regulations[40](index=40&type=chunk) [Material Investments, Acquisitions, and Disposals](index=10&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) As of June 30, 2025, the company had not made or held any material investments, nor had it undertaken any significant acquisitions or disposals - As of June 30, 2025, the Group had not made or held any material investments representing **5% or more** of the Group's total assets[27](index=27&type=chunk) - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, consolidated affiliated entities, associates, or joint ventures[28](index=28&type=chunk) - As of June 30, 2025, the Group had no detailed future plans for material investments or capital assets[30](index=30&type=chunk) [Material Litigation and Post-Reporting Period Events](index=13&type=section&id=Material%20Litigation%2C%20Post-Reporting%20Period%20Events) The company was not involved in any material litigation during the reporting period; post-period, its non-automotive subsidiary D-Robotics completed a Series B preferred share issuance, raising $119.1 million while retaining company control - During the reporting period, the company was not involved in any litigation or arbitration that would have a material adverse effect[44](index=44&type=chunk) - Subsequent to the reporting period, D-Robotics, a non-automotive business subsidiary, entered into a share purchase agreement to issue Series B preferred shares to certain investors for a total cash consideration of **US$119.1 million**, of which **US$83.1 million** has been received[45](index=45&type=chunk) - Following the Series B financing and issuance of Class A ordinary shares, the company will continue to control D-Robotics[45](index=45&type=chunk) [Dividend Policy](index=22&type=section&id=Dividend%20Policy) For the six months ended June 30, 2025, the Board of Directors recommended not to declare an interim dividend - For the six months ended June 30, 2025, the Board of Directors recommended not to declare an interim dividend[46](index=46&type=chunk) [Board of Directors Information](index=23&type=section&id=Board%20of%20Directors%20Information) The Board comprises Executive Directors Dr. Kai Yu, Dr. Chang Huang, Dr. Jian Xu, and Dr. Liming Chen; Non-executive Directors Mr. Liang Li, Mr. Qin Liu, Dr. André Stoffels, and Mr. Jianjun Zhang; and Independent Non-executive Directors Dr. Jun Pu, Mr. Yingqiu Wu, Dr. Katherine Rong Xin, and Dr. Ya-Qin Zhang - The Board of Directors includes Executive Directors Dr. Kai Yu, Dr. Chang Huang, Dr. Jian Xu, and Dr. Liming Chen; Non-executive Directors Mr. Liang Li, Mr. Qin Liu, Dr. André Stoffels, and Mr. Jianjun Zhang; and Independent Non-executive Directors Dr. Jun Pu, Mr. Yingqiu Wu, Dr. Katherine Rong Xin, and Dr. Ya-Qin Zhang[65](index=65&type=chunk)

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) In H1 2025, revenue increased by 10.89% to HKD 2.023 billion, but net loss widened by 45.15% to HKD 85.776 million, mainly due to fair value changes in investment properties Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,023,441 | 1,824,756 | 10.89 | | Cost of sales | (1,622,447) | (1,456,518) | 11.39 | | Gross profit | 400,994 | 368,238 | 8.89 | | Other income | 41,676 | 39,969 | 4.27 | | Net other gains and losses | (1,977) | (22,203) | (91.09) | | Selling and distribution expenses | (31,570) | (36,285) | (12.99) | | Administrative expenses | (216,377) | (198,333) | 9.10 | | Research and development expenses | (75,156) | (73,471) | 2.29 | | Fair value change of investment properties | (255,524) | (200,457) | 27.47 | | Finance costs | (21,972) | (26,512) | (17.12) | | Loss before tax | (175,845) | (127,228) | 38.21 | | Loss for the period | (85,776) | (59,093) | 45.15 | | Loss attributable to equity holders of the Company | (42,337) | (28,578) | 48.14 | | Basic and diluted loss per share | (1.37 HKD cents) | (0.93 HKD cents) | 47.31 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2025, the company reported total comprehensive income of HKD 164.7 million, reversing a total comprehensive expense of HKD 258.415 million in H1 2024, driven by exchange differences from foreign operations Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | | :--- | :--- | :--- | | Loss for the period | (85,776) | (59,093) | | Other comprehensive income/(expense) | | | | Exchange differences arising from translation of foreign operations — Subsidiaries | 243,910 | (191,982) | | Exchange differences arising from translation of foreign operations — Associates | 6,569 | (5,730) | | Exchange differences arising from translation of foreign operations — Joint ventures | – | (1,610) | | Total other comprehensive income/(expense) for the period | 250,479 | (199,322) | | **Total comprehensive income/(expense) for the period** | **164,703** | **(258,415)** | | Total comprehensive income/(expense) attributable to equity holders of the Company | 151,311 | (181,929) | | Total comprehensive income/(expense) attributable to non-controlling interests | 13,392 | (76,486) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets rose to HKD 14.809 billion, total liabilities to HKD 5.528 billion, and equity attributable to shareholders to HKD 7.306 billion, influenced by increases in non-current assets and current liabilities Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current assets** | **11,395,164** | **10,953,891** | **4.03** | | Property, plant and equipment | 2,779,039 | 2,241,421 | 24.00 | | Investment properties | 7,961,643 | 7,992,128 | (0.38) | | **Current assets** | **3,413,566** | **3,327,423** | **2.59** | | Inventories | 639,617 | 556,372 | 14.96 | | Trade and other receivables | 1,280,559 | 1,200,250 | 6.69 | | Cash and cash equivalents | 1,120,409 | 1,154,546 | (2.96) | | **Total assets** | **14,808,730** | **14,281,314** | **3.69** | | **Current liabilities** | **1,956,121** | **1,649,182** | **18.61** | | Trade and other payables | 1,586,128 | 1,307,921 | 21.27 | | **Non-current liabilities** | **3,571,617** | **3,515,843** | **1.59** | | **Total liabilities** | **5,527,738** | **5,165,025** | **7.02** | | **Equity attributable to equity holders of the Company** | **7,305,697** | **7,154,386** | **2.11** | | Non-controlling interests | 1,975,295 | 1,961,903 | 0.68 | | **Total equity** | **9,280,992** | **9,116,289** | **1.81** | [Notes to the Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) This interim financial information is prepared in accordance with HKAS 34 and HKEX Listing Rules, presented with comparative data from the 2024 annual financial report - This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and the applicable disclosure requirements of the HKEX Listing Rules[8](index=8&type=chunk) - The 2024 annual financial report was submitted to the Registrar of Companies, and the auditor's report was **unqualified**[8](index=8&type=chunk)[9](index=9&type=chunk) [Principal Accounting Policies](index=6&type=section&id=Principal%20Accounting%20Policies) This interim financial information is prepared primarily on a historical cost basis, with consistent accounting policies as the 2024 annual report, and new HKFRS amendments have no material impact - This interim financial information is prepared on a historical cost basis, except for certain investment properties and financial assets measured at fair value through profit or loss[10](index=10&type=chunk) - The accounting policies and methods of computation adopted are consistent with those used in the preparation of the Group's annual financial report for the year ended December 31, 2024[10](index=10&type=chunk) - The application of amendments to Hong Kong Financial Reporting Standards during this interim period has **no material impact** on the Group's financial position and performance for the current and prior periods and/or the disclosures contained in this interim financial information[11](index=11&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) The company's operating segments include Technology Industry (various manufacturing and industrial property investment) and Aerospace Services (Shenzhen Aerospace Science Plaza property investment) - The Group's operating and reportable segments are defined based on internal reports reviewed by the President (the Group's chief operating decision maker) for strategic decisions[12](index=12&type=chunk) - The 2025 reportable segments include seven categories: Technology Industry (comprising injection molding products, liquid crystal displays, circuit boards, smart chargers, smart power modules, and industrial property investment) and Aerospace Services (comprising property investment in Shenzhen Aerospace Science Plaza)[12](index=12&type=chunk) H1 2025 Segment Revenue and Results | Segment | External Sales (HKD Thousand) | Segment Results (HKD Thousand) | | :--- | :--- | :--- | | Technology Industry | 1,926,568 | 61,299 | | Injection Molding Products | 956,375 | 51,978 | | Liquid Crystal Displays | 292,770 | 19,607 | | Circuit Boards | 508,546 | 10,145 | | Smart Chargers | 132,473 | (2,835) | | Smart Power Modules | 31,207 | (10,318) | | Industrial Property Investment | 5,197 | (7,278) | | Aerospace Services | 94,129 | (187,972) | | Other Businesses | 2,744 | (2,368) | | **Total** | **2,023,441** | **(129,041)** | [Other Income and Net Other Gains and Losses](index=9&type=section&id=Other%20Income%20and%20Net%20Other%20Gains%20and%20Losses) H1 2025 other income mainly comprised bank interest and scrap sales, while net other gains and losses were impacted by fair value changes in financial assets and net exchange losses H1 2025 Other Income | Item | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | | :--- | :--- | :--- | | Bank interest income | 12,579 | 13,410 | | Sales of scrap materials | 23,812 | 12,752 | H1 2025 Net Other Gains and Losses | Item | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | | :--- | :--- | :--- | | (Loss)/gain on disposal of property, plant and equipment | (200) | 656 | | Net gain/(loss) from fair value changes of financial assets at fair value through profit or loss | 10,471 | (27,686) | | Net exchange (loss)/gain | (12,443) | 4,827 | [Loss Before Tax](index=9&type=section&id=Loss%20Before%20Tax) H1 2025 loss before tax widened to HKD 175.845 million from HKD 127.228 million in H1 2024, after deducting depreciation of property, plant, and equipment and right-of-use assets H1 2025 Loss Before Tax and Key Deductions | Indicator | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | | :--- | :--- | :--- | | Loss before tax | (175,845) | (127,228) | | Depreciation of property, plant and equipment | 109,199 | 118,935 | | Depreciation of right-of-use assets | 24,931 | 19,144 | [Taxation](index=9&type=section&id=Taxation) H1 2025 taxation was HKD (90.069) million, including Hong Kong profits tax, PRC corporate income tax, and deferred tax credits, with some PRC subsidiaries enjoying a 15% high-tech enterprise tax rate H1 2025 Taxation Components | Item | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 2,048 | 2,154 | | PRC corporate income tax | 9,524 | 6,040 | | Deferred tax credit | (101,641) | (76,329) | | **Taxation for the period** | **(90,069)** | **(68,135)** | - Hong Kong profits tax and PRC corporate income tax are calculated at **16.5%** and **25%** respectively, with certain PRC subsidiaries enjoying a **15%** high-tech enterprise income tax rate[16](index=16&type=chunk) [Loss Per Share](index=10&type=section&id=Loss%20Per%20Share) H1 2025 basic and diluted loss per share widened to HKD 1.37 cents from HKD 0.93 cents in H1 2024, with convertible loan notes excluded from diluted loss calculation due to higher exercise price Loss Per Share Calculation Data | Indicator | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | | :--- | :--- | :--- | | Loss for the period attributable to equity holders of the Company | (42,337) | (28,578) | | Number of shares in issue (Thousand shares) | 3,085,021 | 3,085,021 | | Basic and diluted loss per share | (1.37 HKD cents) | (0.93 HKD cents) | - The conversion of convertible loan notes was not assumed for calculating diluted loss per share, as their exercise price was **higher than the average market price** of the shares[19](index=19&type=chunk) [Dividends](index=10&type=section&id=Dividends) The Board resolved not to declare an interim dividend for 2025, consistent with the prior year - No dividends were paid, declared, or proposed during the interim period[20](index=20&type=chunk) - The Board of Directors resolved not to propose an interim dividend for the current period[20](index=20&type=chunk) [Trade and Other Receivables](index=11&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade receivables were HKD 1.116 billion, mostly due within 90 days, with overdue rental receivables of HKD 11.153 million within 90 days Trade Receivables Ageing Analysis (As of June 30, 2025) | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Within 90 days | 1,026,172 | 912,575 | | 91-180 days | 90,126 | 90,035 | | 181-365 days | – | 18,544 | | **Total** | **1,116,298** | **1,021,154** | - Trade receivables from customer contracts include bills received and held for future settlement of trade receivables amounting to **HKD 102.94 million** (December 31, 2024: HKD 82.489 million), all of which are due within one year[21](index=21&type=chunk) Rental Receivables Ageing Analysis (Invoiced and Overdue, As of June 30, 2025) | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Within 90 days | 11,153 | 5,395 | [Trade and Other Payables](index=11&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade payables increased to HKD 793.241 million from HKD 638.870 million at year-end 2024, with the majority due within 90 days Trade Payables Ageing Analysis (As of June 30, 2025) | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Within 90 days | 744,396 | 619,928 | | 91-180 days | 48,845 | 18,942 | | **Total** | **793,241** | **638,870** | [Chairman's Report](index=12&type=section&id=Chairman's%20Report) [Market Review](index=12&type=section&id=Market%20Review) H1 2025 saw global economic multipolarization, US-China trade policy shifts, EU de-risking, and developing country cooperation, while China's GDP grew 5.3% with strong exports but declining US trade and internal growth challenges - Global economic growth was approximately **3.2%**, but weak demand in developed economies and geopolitical conflicts led to energy price volatility, pressuring international trade[24](index=24&type=chunk) - China's GDP grew by **5.3%** year-on-year, driven by both industrial and service sectors, with moderate consumption recovery and a **5.0%** increase in total retail sales of consumer goods[25](index=25&type=chunk) - China's exports **exceeded expectations**, growing by **7.2%** year-on-year, primarily due to market diversification strategies, though exports to the US declined by **9.9%** due to US-China tariff frictions[25](index=25&type=chunk) - China's economy remained stable under policy guidance, but internal growth momentum was insufficient, facing significant challenges from external shocks and internal structural contradictions in the second half of the year[25](index=25&type=chunk) [Performance](index=12&type=section&id=Performance) H1 2025 revenue increased by 10.89% to HKD 2.023 billion, but net loss widened by 45.15% to HKD 85.776 million, primarily due to a fair value decrease in Shenzhen Aerospace Science Plaza investment property H1 2025 Key Performance Data | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | HKD 2,023,441,000 | HKD 1,824,756,000 | 10.89 | | Net Loss | HKD 85,776,000 | HKD 59,093,000 | 45.15 | | Loss Attributable to Equity Holders of the Company | HKD 42,337,000 | HKD 28,578,000 | 48.14 | | Basic Loss Per Share | HKD 1.37 cents | HKD 0.93 cents | 47.31 | - The loss for the period primarily resulted from a **decrease in the fair value** of the investment property, Shenzhen Aerospace Science Plaza, held by the Company[26](index=26&type=chunk) - The Board of Directors resolved **not to declare** an interim dividend for 2025[26](index=26&type=chunk) [Business Review](index=13&type=section&id=Business%20Review) In H1 2025, the Technology Industry expanded into new sectors, optimized customer service, and reduced costs, while the Aerospace Services segment faced challenges in Shenzhen's office leasing market and pursued litigation enforcement - The Technology Industry business expanded into emerging sectors such as **low-altitude economy, artificial intelligence, and high-end medical** through targeted technological R&D, seeking new revenue growth points[27](index=27&type=chunk) - The Technology Industry business continuously optimized its customer service system, focused on customer groups highly aligned with strategic goals, and adopted various measures to **reduce production costs and mitigate exchange rate fluctuations** to maintain profitability[27](index=27&type=chunk) - The civil engineering for Nantong Kangyuan's integrated circuit packaging substrate capacity building has been completed, smart power module (IPM) packaging business has officially commenced production, and Vietnam Zhiyuan's injection molding business has reached **full capacity** with plans for a second phase, expected to increase overall production capacity by approximately **40%**[28](index=28&type=chunk) - Shenzhen Aerospace Science Plaza faced a challenging office leasing market with increasing supply and high vacancy rates, prompting targeted customer acquisition and the **enforcement of various litigation judgments**[29](index=29&type=chunk) - The company continuously enhanced internal control efficiency, promoted informatization, improved compliance management, implemented energy-saving and environmental protection measures, and cultivated and introduced high-caliber talent[30](index=30&type=chunk) [Outlook](index=14&type=section&id=Outlook) The company will closely monitor the H2 2025 global economic landscape, focusing on core and new business development to achieve high-quality growth amidst challenges and opportunities - In H2 2025, the global economy faces multiple challenges and opportunities, including divergent growth among major economies, shifts in monetary policy, trade policy uncertainties, and geopolitical risks[31](index=31&type=chunk) - The Board of Directors will closely monitor the market environment, focusing on the development of existing core businesses and newly explored ventures, to confidently advance and fully achieve high-quality development for Aerospace Holdings[31](index=31&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Performance Overview](index=14&type=section&id=Performance%20Overview) H1 2025 operating revenue increased by 10.89% to HKD 2.023 billion, while net loss widened to HKD 85.776 million H1 2025 Performance Overview | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | HKD 2,023,441,000 | HKD 1,824,756,000 | 10.89 | | Net Loss | HKD 85,776,000 | HKD 59,093,000 | 45.15 | [Loss Attributable to Equity Holders of the Company](index=14&type=section&id=Loss%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) H1 2025 loss attributable to shareholders widened to HKD 42.337 million, primarily due to a HKD 55.067 million increase in fair value loss on investment properties, resulting in a basic loss per share of HKD 1.37 cents Loss Attributable to Equity Holders of the Company | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss attributable to equity holders of the Company | HKD 42,337,000 | HKD 28,578,000 | | Fair value change loss of investment properties | HKD 255,524,000 | HKD 200,457,000 | | Basic loss per share | HKD 1.37 cents | HKD 0.93 cents | - The further widening of the loss for the period was mainly due to a loss of **HKD 255.524 million** from fair value changes in investment properties, an increase of **HKD 55.067 million** compared to H1 2024[33](index=33&type=chunk) [Dividends](index=15&type=section&id=Dividends) The Board resolved not to declare an interim dividend for 2025 and did not recommend a final dividend for 2024 - The Board of Directors resolved **not to declare** an interim dividend for 2025[34](index=34&type=chunk) - During the year, the Board of Directors decided **not to recommend** a final dividend for 2024[35](index=35&type=chunk) [Performance of Major Businesses](index=15&type=section&id=Performance%20of%20Major%20Businesses) The company's core operations include technology industrial businesses (R&D, production, sales of plastic, electronic, power, and semiconductor products) and property management of Shenzhen Aerospace Science Plaza, while continuously seeking new business opportunities - The Company and its subsidiaries are primarily engaged in the R&D, design, specialized production, sales, and services of plastic products, electronic products, power products, and semiconductor products within the **Technology Industry business**, as well as the property management business of Shenzhen Aerospace Science Plaza[36](index=36&type=chunk) - The Technology Industry business serves as the **main cornerstone** of the Company's operating revenue and the primary source of its profit and operating cash flow[36](index=36&type=chunk) - The Company is also continuously seeking and developing opportunities for **new businesses** to create value for shareholders[36](index=36&type=chunk) [Technology Industry](index=15&type=section&id=Technology%20Industry) H1 2025 Technology Industry revenue grew 11.66% to HKD 1.927 billion, with segment profit up 2.70% to HKD 61.3 million, driven by strong injection molding, new IPM production, and AI vision software applications Technology Industry Business Performance (H1 2025) | Business | Operating Revenue (HKD Thousand) | H1 2024 (HKD Thousand) | Change (%) | Operating Profit/(Loss) (HKD Thousand) | H1 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Injection Molding Products | 956,375 | 794,838 | 20.32 | 51,978 | 36,832 | 41.12 | | Circuit Boards | 508,546 | 456,418 | 11.42 | 10,145 | 19,335 | (47.53) | | Smart Chargers | 132,473 | 137,580 | (3.71) | (2,835) | (1,872) | 51.44 | | Liquid Crystal Displays | 292,770 | 323,594 | (9.53) | 19,607 | 29,015 | (32.42) | | Smart Power Modules | 31,207 | 7,764 | 301.94 | (10,318) | (13,676) | (24.55) | | Industrial Property Investment | 5,197 | 5,161 | 0.70 | (7,278) | (9,946) | (26.82) | | **Total** | **1,926,568** | **1,725,355** | **11.66** | **61,299** | **59,688** | **2.70** | - During the period, revenue from the injection molding products business grew by **20.32%**, with stable growth in orders from emerging industries such as the low-altitude economy, and the Vietnam Zhiyuan business reached **full capacity** and became a profit center[39](index=39&type=chunk) - Revenue from the circuit board business increased by **11.42%**, but operating profit decreased by **47.53%** due to US-China tariff frictions and exchange rate fluctuations[40](index=40&type=chunk) - Revenue from the smart power module (IPM) business grew by **301.94%**, with products transitioning to mass production, achieving an average yield rate of **98.2%**, and is expected to gradually achieve profitability as production lines reach full capacity[41](index=41&type=chunk) - The first phase of Nantong Kangyuan's factory construction has been completed and commenced small-scale trial production, with high-end integrated circuit packaging substrate and high-density printed circuit board capacity expected to **double**, potentially ranking among the top three domestic substrate manufacturers[42](index=42&type=chunk) - The AI-based visual inspection software developed by the Smart Research Institute has been successfully applied to **PCB product inspection**; progress has been made in utilizing DeepSeek to empower operational and business management; the 5G millimeter-wave filter R&D line is operating stably, actively exploring applications in the low-altitude sector[43](index=43&type=chunk) - Key work priorities for H2 2025 include market expansion, product structure adjustment, product cost compression, mitigation of exchange rate fluctuation losses, and acceleration of new technology R&D and industrialization[44](index=44&type=chunk) [Shenzhen Aerospace Science Plaza](index=18&type=section&id=Shenzhen%20Aerospace%20Science%20Plaza) H1 2025 Shenzhen Aerospace Science Plaza reported revenue of HKD 94.129 million and a segment loss of HKD 187.972 million due to property revaluation, with declining occupancy rates and ongoing litigation enforcement Shenzhen Aerospace Science Plaza Performance and Valuation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Operating Revenue | HKD 94,129,000 | HKD 95,585,000 | | Segment Loss | HKD 187,972,000 | HKD 127,053,000 | | Property Valuation (As of June 30, 2025) | RMB 7,299,000,000 | RMB 7,540,000,000 (December 31, 2024) | Shenzhen Aerospace Science Plaza Occupancy Rate (As of June 30, 2025) | Section | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial Section | 63.63% | 65.59% | | Office Section | 44.79% | 47.50% | - All lawsuits with Aerospace Houhai, Classic Industrial, and Huabaorun have received **final judgments**, and the company is actively pursuing the enforcement of these judgments within the legal framework[29](index=29&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - Aerospace High-Tech is expected to receive approximately **RMB 44.5 million** from Aerospace Houhai; Classic Industrial may bear joint and several liability for up to approximately **RMB 22.25 million**; Huabaorun is required to pay a total of approximately **RMB 68.6 million** to Aerospace High-Tech and High-Tech Property Management[46](index=46&type=chunk) - Aerospace High-Tech has frozen and preserved relevant assets and submitted them to the court for enforcement, but as of June 30, 2025, neither Aerospace Houhai nor Huabaorun had paid the amounts as per the judgments, except for **RMB 55,000**[47](index=47&type=chunk) [Other Businesses](index=19&type=section&id=Other%20Businesses) Associate company Shenzhen Ruihuatai Film Technology Co Ltd did not declare any dividends during the period - Associate company Shenzhen Ruihuatai Film Technology Co Ltd did **not declare any dividends** during the period[48](index=48&type=chunk) [Asset Position](index=19&type=section&id=Asset%20Position) As of June 30, 2025, total assets increased to HKD 14.809 billion, with non-current assets up 4.03% and current assets up 2.59%, while equity attributable to shareholders rose 2.11% to HKD 7.306 billion due to exchange reserve increases Asset Position (As of June 30, 2025) | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 11,395,164 | 10,953,891 | 4.03 | | Current assets | 3,413,566 | 3,327,423 | 2.59 | | **Total assets** | **14,808,730** | **14,281,314** | **3.69** | | Equity attributable to equity holders of the Company | 7,305,697 | 7,154,386 | 2.11 | - The increase in non-current assets was primarily due to the **acquisition of property, plant and equipment** and the increase in RMB-denominated assets when translated into HKD equivalents[49](index=49&type=chunk) - The increase in current assets was mainly due to an increase in **inventories and receivables**[49](index=49&type=chunk) - The increase in equity attributable to equity holders of the Company was mainly due to an increase in **exchange reserves** resulting from the appreciation of the RMB exchange rate during the period[50](index=50&type=chunk) - As of June 30, 2025, cash deposits of **HKD 45.937 million** and bills receivable of **HKD 67.799 million** were pledged to banks; property certificates for Shenzhen Aerospace Science Plaza were pledged to secure loans of **RMB 1.3 billion and RMB 100 million**; and land use rights and buildings of Nantong Kangyuan were pledged to secure a bank loan facility of **RMB 1 billion**[51](index=51&type=chunk) [Debt Position](index=20&type=section&id=Debt%20Position) As of June 30, 2025, total liabilities increased to HKD 5.528 billion, with non-current liabilities up 1.59% due to new bank loans and exchange rate effects, and current liabilities up 18.61% due to increased trade payables Debt Position (As of June 30, 2025) | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current liabilities | 3,571,617 | 3,515,843 | 1.59 | | Current liabilities | 1,956,121 | 1,649,182 | 18.61 | | **Total liabilities** | **5,527,738** | **5,165,025** | **7.02** | - The increase in non-current liabilities was primarily due to **new bank loans** obtained during the period and the increase in RMB-denominated liabilities when translated into HKD equivalents at the reporting date[52](index=52&type=chunk) - The increase in current liabilities was mainly due to an increase in **trade payables**[52](index=52&type=chunk) Bank and Other Borrowings (As of June 30, 2025) | Type | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Bank borrowings | 518,048 | 349,825 | | Other borrowings | 1,122,538 | 1,163,656 | [Operating Expenses](index=20&type=section&id=Operating%20Expenses) H1 2025 administrative expenses increased by 9.10% to HKD 216.377 million, while finance costs decreased by 17.12% to HKD 21.972 million Operating Expenses (H1 2025) | Indicator | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 216,377 | 198,333 | 9.10 | | Finance costs | 21,972 | 26,512 | (17.12) | [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the Company and its subsidiaries had **no significant contingent liabilities**[54](index=54&type=chunk) [Financial Ratios](index=21&type=section&id=Financial%20Ratios) In H1 2025, gross profit margin and return on equity declined, while the debt-to-asset ratio, current ratio, and quick ratio all deteriorated Financial Ratios | Indicator | H1 2025/June 30 | H1 2024/Dec 31 | | :--- | :--- | :--- | | Gross Profit Margin | 19.82% | 20.18% | | Return on Equity | (0.92%) | (0.64%) | | Debt-to-Asset Ratio | 37.33% | 36.17% | | Current Ratio | 1.75 | 2.02 | | Quick Ratio | 1.40 | 1.66 | [Liquidity](index=21&type=section&id=Liquidity) As of June 30, 2025, cash and cash equivalents and short-term bank deposits totaled HKD 1.411 billion, primarily in RMB, USD, and HKD Cash and Cash Equivalents and Short-Term Bank Deposits | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Cash and cash equivalents and short-term bank deposits | 1,411,081 | 1,497,130 | - The Company and its subsidiaries' funding sources primarily consist of **internal resources** and credit facilities from banks and financial institutions[56](index=56&type=chunk) - The main currencies are **RMB, USD, and HKD**[56](index=56&type=chunk) [Capital Expenditure](index=21&type=section&id=Capital%20Expenditure) As of June 30, 2025, the company had contracted but unprovided capital commitments of approximately HKD 373.771 million, mainly for the acquisition of fixed assets Capital Commitments | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Capital commitments contracted but not provided for in the condensed consolidated financial statements | 373,771 | 437,360 | - Capital commitments are primarily for the **acquisition of fixed assets**[57](index=57&type=chunk) [Financial Risks](index=21&type=section&id=Financial%20Risks) The company regularly reviews cash flow and financial position but currently does not use financial instruments or derivatives to hedge exchange rate and interest rate risks - The Company and its subsidiaries regularly review their cash flow and financial position[58](index=58&type=chunk) - Currently, no financial instruments or derivative instruments are used to hedge exchange rate and interest rate risks[58](index=58&type=chunk) [Human Resources and Remuneration Policy](index=22&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 7,766 employees across Mainland China, Hong Kong, and Vietnam, with remuneration based on qualifications, experience, performance, and market conditions, supported by a performance-centric assessment system - As of June 30, 2025, the Company and its subsidiaries had a total of **7,766 employees**, located in Mainland China, Hong Kong, and Vietnam[59](index=59&type=chunk) - The remuneration policy is determined based on employees' qualifications, experience, work performance, and market conditions[59](index=59&type=chunk) - The company will continuously improve human resource management and strictly implement a **performance-centric assessment system**[59](index=59&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities in H1 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025[60](index=60&type=chunk) [Interim Dividend](index=22&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for 2025, consistent with the prior year - The Board of Directors of the Company resolved **not to declare** an interim dividend for 2025 (2024 interim dividend: nil)[61](index=61&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) For H1 2025, the company consistently complied with the Code Provisions of Appendix C1 to the Listing Rules on Corporate Governance Code - For the six months ended June 30, 2025, the Company consistently complied with the Code Provisions of Appendix C1 to the Listing Rules on Corporate Governance Code[62](index=62&type=chunk) [Litigation and Arbitration](index=22&type=section&id=Litigation%20and%20Arbitration) As of June 30, 2025, the company was involved in litigation judgments and progress between Aerospace High-Tech and Aerospace Houhai/Huabaorun, and arbitration between Aerospace Science Semiconductor and Majie (Suzhou) Technology, with no other significant matters - As of June 30, 2025, the Company was involved in litigation judgments and progress between Aerospace High-Tech and its wholly-owned subsidiary High-Tech Property Management, respectively, with Aerospace Houhai and Huabaorun[63](index=63&type=chunk) - The Company was involved in an arbitration matter between Aerospace Science Semiconductor Co Ltd and Majie (Suzhou) Technology Co Ltd[63](index=63&type=chunk) - Except for the matters disclosed, neither the Company nor any of its subsidiaries was involved in any **significant litigation, arbitration, or claims**[63](index=63&type=chunk) [Directors' and Chief Executive's Interests in Shares](index=23&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Shares) As of June 30, 2025, all directors and chief executives complied with the Model Code for Securities Transactions by Directors of Listed Issuers, with no registrable interests in shares, warrants, or options - All Directors complied with the requirements of the Model Code for Securities Transactions by Directors of Listed Issuers during the six months ended June 30, 2025[64](index=64&type=chunk) - As of June 30, 2025, no Director, chief executive, or any of their associates held any beneficial, non-beneficial, or short position interests in the shares, warrants, and options of the Company and its subsidiaries or their respective associated corporations that are required to be recorded in the register of directors' interests under Part XV of the Securities and Futures Ordinance[65](index=65&type=chunk) [Review of Interim Results](index=23&type=section&id=Review%20of%20Interim%20Results) The company's Audit Committee reviewed, discussed, and approved the unaudited interim financial information for H1 2025, which was also reviewed by the auditor, Da Xin Liang Xue Lian (Hong Kong) CPA Co - The Company's Audit Committee reviewed, discussed, and approved the unaudited interim financial information for the six months ended June 30, 2025, which was also reviewed by the auditor, Da Xin Liang Xue Lian (Hong Kong) CPA Co[66](index=66&type=chunk) [Compliance Statement](index=23&type=section&id=Compliance%20Statement) The 2024 annual financial statements were submitted to the Registrar of Companies under the Companies Ordinance, and the auditor issued an unqualified audit report - The Company submitted its financial statements for the year ended December 31, 2024, to the Registrar of Companies in accordance with Section 662(3) and Part 3 of Schedule 6 to the Companies Ordinance[67](index=67&type=chunk) - The Company's auditor issued an **unqualified audit report** on these financial statements[68](index=68&type=chunk) [Publication of 2025 Interim Results and Interim Report](index=24&type=section&id=Publication%20of%202025%20Interim%20Results%20and%20Interim%20Report) This announcement is available on the company's website and HKEXnews, with the 2025 interim report to be published and dispatched to shareholders by end of September 2025 - This announcement is available on the Company's website (www.casil-group.com) and the HKEXnews website (www.hkexnews.hk) of Hong Kong Exchanges and Clearing Limited[69](index=69&type=chunk) - The 2025 interim report will be published on the Company's and HKEXnews websites and dispatched to shareholders who requested printed copies by the end of September 2025[69](index=69&type=chunk) [Acknowledgements](index=24&type=section&id=Acknowledgements) The company thanks Mr Hua Chongzhi for his contributions, welcomes Mr Liu Yong to the Board, and commits to its core corporate culture to create greater shareholder value - Mr Hua Chongzhi resigned from his positions as non-executive director of the Company due to retirement, and Mr Liu Yong was appointed to succeed him[70](index=70&type=chunk) - The company will uphold its core corporate culture of "Patriotism, Innovation, Integrity, Harmony, and Responsibility" to create greater value for all shareholders[70](index=70&type=chunk) - The Board of Directors includes Executive Directors Mr Wang Hui (Chairman) and Mr Song Shuqing (President), Non-executive Directors Mr Teng Fangqian, Mr Peng Jianguo, and Mr Liu Yong, and Independent Non-executive Directors Mr Lo Chun Bong, Ms Chan Ching Yu, and Ms Xue Lan[71](index=71&type=chunk)

（在中華人民共和國註冊成立的股份有限公司） （股份代號：998） 截至2025年6月30日止六個月中期業績公告 中信銀行股份有限公司（「本行」）董事會（「董事會」）欣然宣佈本行及其附屬公司（「本集 團」）截至2025年6月30日止六個月的中期業績。本業績公告列載本行截至2025年6月30 日止六個月之中期報告全文 ，其內容是根據適用的《香港聯合交易所有限公司證券上市 規則》（「香港上市規則」）披露要求編製 。本集團編製的截至2025年6月30日止六個月的中 期財務信息已經畢馬威會計師事務所根據香港審閱準則審閱。本行董事會之審計與關聯 交易控制委員會已審閱此中期業績 。本業績公告於本行的網站（www.citicbank.com)及 香港聯合交易所有限公司（「香港聯交所」或「聯交所」）的網站(www.hkexnews.hk)發佈。 本行將於適當時候發佈截至2025年6月30日止六個月的中期報告，中期報告將在上述網 站可供查詢。 暫停股份過戶登記 經董事會審議通過，本行擬提交臨時股東大會審議 2025 年中期利潤分配方案， 每 10 股派發現金股息 1.88 元 人 民 幣（ 含 稅 ）， 按 截 至 2025 年 ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) [Overview of Financial Summary](index=1&type=section&id=Overview%20of%20Financial%20Summary) GHW International announced its unaudited condensed consolidated results for the six months ended June 30, 2025, with revenue increasing by **3.7%** year-over-year to **RMB 1,856.7 million**, net profit surging by **77.1%** to **RMB 7.9 million**, and basic earnings per share growing by **40.0%** to **RMB 0.007** Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,856.7 | 1,790.2 | +3.7% | | Gross Profit | 170.5 | 194.5 | -12.4% | | Net Profit | 7.9 | 4.4 | +77.1% | | Basic EPS (RMB) | 0.007 | 0.005 | +40.0% | - The Board resolved not to recommend any interim dividend for the six months ended June 30, 2025[5](index=5&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue was **RMB 1,856,712 thousand**, a **3.7%** increase year-over-year; gross profit decreased by **12.4%** to **RMB 170,463 thousand**, but profit for the period significantly increased by **77.1%** to **RMB 7,877 thousand** due to higher other income and exchange gains Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,856,712 | 1,790,194 | | Cost of sales | (1,686,249) | (1,595,694) | | Gross Profit | 170,463 | 194,500 | | Other income | 12,315 | 2,691 | | Other gains and losses | 8,905 | (167) | | Profit before tax | 10,613 | 6,932 | | Profit for the period | 7,877 | 4,447 | | Total comprehensive income for the period | 9,996 | 596 | | Basic EPS (RMB) | 0.007 | 0.005 | - Profit for the period significantly increased by **77.1%**, primarily due to a substantial increase in other income (such as VAT additional deduction benefits) and net exchange gains, offsetting the decrease in gross profit caused by intensified market competition[6](index=6&type=chunk)[23](index=23&type=chunk)[70](index=70&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased to **RMB 2,090,527 thousand** from December 31, 2024; net current liabilities improved from **RMB (127,755) thousand** to **RMB (87,500) thousand**, and total equity grew to **RMB 632,338 thousand** Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 930,938 | 925,170 | | Current assets | 1,159,589 | 1,121,377 | | **Total assets** | **2,090,527** | **2,046,547** | | Current liabilities | 1,247,089 | 1,249,132 | | Non-current liabilities | 211,100 | 175,839 | | **Total liabilities** | **1,458,189** | **1,424,971** | | Net current liabilities | (87,500) | (127,755) | | Net assets | 632,338 | 621,576 | | Total equity | 632,338 | 621,576 | - Cash and cash equivalents increased from approximately **RMB 101,461 thousand** as of December 31, 2024, to approximately **RMB 155,278 thousand** as of June 30, 2025, indicating improved liquidity[9](index=9&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [General Information](index=6&type=section&id=General%20Information) GHW International was incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, primarily engaged in the manufacturing and sale of chemical and pharmaceutical products, with Mr. Yin Yanbin and Ms. Wu Hailing as its controlling shareholders - The Company was incorporated in the Cayman Islands on April 25, 2018, and listed on the Main Board of the Hong Kong Stock Exchange on January 21, 2020[11](index=11&type=chunk) - The Company is an investment holding company, and its subsidiaries are principally engaged in the manufacturing and sale of chemical and pharmaceutical products[12](index=12&type=chunk) [Basis of Preparation of Condensed Consolidated Financial Statements](index=6&type=section&id=Basis%20of%20Preparation%20of%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements are prepared in accordance with IAS 34 'Interim Financial Reporting' and the HKEX Listing Rules, presented in RMB - The financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of Appendix 16 to the HKEX Listing Rules[13](index=13&type=chunk) - The condensed consolidated financial statements are presented in RMB, which is the same as the Company's functional currency[14](index=14&type=chunk) [Significant Accounting Policies](index=6&type=section&id=Significant%20Accounting%20Policies) The condensed consolidated financial statements are primarily prepared on a historical cost basis, applying consistent accounting policies with the prior year's consolidated financial statements, with no material impact from newly applied IFRS amendments - The financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[15](index=15&type=chunk) - The revised IFRS accounting standards, mandatory for annual periods beginning on or after January 1, 2025, were first applied in this interim period but had no material impact on the Group's financial position and performance[16](index=16&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from the manufacturing and sale of chemical and pharmaceutical products, totaling **RMB 1,856,712 thousand** for the six months ended June 30, 2025; revenue from iodine derivative series and green products significantly increased, while methylamine industrial series and advanced material intermediates series declined, with Mainland China remaining the primary revenue source at **76.4%** of total revenue - Revenue refers to income generated from the manufacturing and sale of chemical and pharmaceutical products during the two periods[17](index=17&type=chunk) Revenue by Product Type (RMB thousand) | Product Type | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Methylamine Industrial Series | 600,981 | 617,525 | -2.7% | | Iodine Derivative Series and Related Products | 588,339 | 440,302 | +33.6% | | Jinhaiwei New Materials | 399,090 | 399,570 | -0.1% | | Advanced Material Intermediates Series | 132,537 | 218,071 | -39.2% | | Green Products | 111,485 | 94,706 | +17.7% | | Health Products | 15,001 | 13,321 | +12.6% | | Gegexiang Select | 978 | — | N/A | | Others | 8,301 | 6,699 | +23.9% | | **Total** | **1,856,712** | **1,790,194** | **+3.7%** | Revenue by Customer Location (RMB thousand) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Mainland China | 1,418,926 | 1,411,161 | | Europe | 183,474 | 148,735 | | Vietnam | 85,828 | 77,264 | | Other Asian Countries | 95,906 | 101,916 | | Others | 72,578 | 51,118 | | **Total** | **1,856,712** | **1,790,194** | [Other Income and Other Gains and Losses](index=9&type=section&id=Other%20Income%20and%20Other%20Gains%20and%20Losses) Other income significantly increased to **RMB 12,315 thousand** this period, primarily due to **RMB 7,452 thousand** in VAT additional deduction benefits; other gains and losses turned from a loss to a gain of **RMB 8,905 thousand**, mainly driven by increased net exchange gains Other Income (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Government grants | 2,560 | 1,409 | | VAT additional deduction benefits | 7,452 | — | | Bank interest income | 600 | 637 | | Interest income from loans receivable | 297 | 299 | | Others | 1,406 | 346 | | **Total** | **12,315** | **2,691** | Other Gains and Losses (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net exchange gains/(losses) | 9,427 | (114) | | Loss on disposal of property, plant and equipment | (1,090) | (654) | | Fair value changes of financial assets at fair value through profit or loss | (8) | (144) | | Fair value changes of derivative financial instruments | (79) | (7) | | Others | 655 | 752 | | **Total** | **8,905** | **(167)** | - The Group benefited from China's VAT credit refund policy for advanced manufacturing, receiving approximately **RMB 7,452 thousand** in additional deduction benefits this period[26](index=26&type=chunk) [Profit Before Tax](index=10&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax increased to **RMB 10,613 thousand** from **RMB 6,932 thousand** in the prior period, reflecting the combined impact of inventory costs, depreciation, and inventory write-downs Composition of Profit Before Tax (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 1,686,256 | 1,594,853 | | Total depreciation | 10,651 | 7,368 | | (Reversal of)/write-down of inventories, net of reversal | (7) | 841 | [Taxation](index=11&type=section&id=Taxation) Tax expense increased to **RMB 2,736 thousand** this period, with the effective tax rate decreasing to **25.8%**, primarily due to the impact of under-provision for prior year income tax expenses Tax Expense (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current tax | 4,311 | 3,495 | | Under-provision in prior years | 9 | 1,324 | | Deferred tax | (1,584) | (2,334) | | **Total** | **2,736** | **2,485** | - The effective tax rate was approximately **25.8%** in H1 2025, a decrease from **35.8%** in the same period of 2024[76](index=76&type=chunk) [Dividends](index=11&type=section&id=Dividends) The Company neither paid nor declared any dividends for the six months ended June 30, 2025 and 2024 - The Company neither paid nor declared any dividends for the six months ended June 30, 2025 and 2024[28](index=28&type=chunk) [Earnings Per Share](index=11&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share attributable to owners of the Company were **RMB 0.007**, an increase from **RMB 0.005** in the prior period EPS Calculation Data | Indicator | H1 2025 (thousand shares) | H1 2024 (thousand shares) | | :--- | :--- | :--- | | Weighted average number of ordinary shares for basic EPS | 944,320 | 949,100 | | Weighted average number of ordinary shares for diluted EPS | 944,544 | 949,100 | - Basic earnings per share attributable to owners of the Company was **RMB 0.007**, representing a **40%** year-over-year increase[8](index=8&type=chunk) [Trade Receivables](index=12&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables decreased to **RMB 270,195 thousand** from December 31, 2024; the provision for credit losses decreased, and impairment losses of **RMB 2,356 thousand** were reversed this period Trade Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 273,203 | 291,869 | | Less: Provision for credit losses | (3,008) | (5,417) | | **Net** | **270,195** | **286,452** | Aging Analysis of Trade Receivables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 169,508 | 186,358 | | 31 to 60 days | 63,038 | 52,546 | | 61 to 90 days | 25,675 | 34,866 | | Over 90 days | 11,974 | 12,682 | | **Total** | **270,195** | **286,452** | - For the six months ended June 30, 2025, the Group reversed impairment losses of **RMB 2,356 thousand** on trade receivables (2024: recognized impairment losses of **RMB 1,656 thousand**)[35](index=35&type=chunk) [Bills Receivable at Fair Value Through Other Comprehensive Income](index=14&type=section&id=Bills%20Receivable%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of June 30, 2025, bills receivable at fair value through other comprehensive income decreased to **RMB 117,027 thousand** from December 31, 2024, with **RMB 81,092 thousand** pledged as collateral for borrowings Bills Receivable at Fair Value Through Other Comprehensive Income (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bills receivable at fair value through other comprehensive income | 117,027 | 127,229 | - As of June 30, 2025, the Group pledged bills receivable with a total net carrying amount of **RMB 81,092 thousand** as collateral for bank financing and supplier payments[37](index=37&type=chunk) [Trade Payables and Bills Payable](index=15&type=section&id=Trade%20Payables%20and%20Bills%20Payable) As of June 30, 2025, total trade payables and bills payable decreased to **RMB 379,703 thousand** from December 31, 2024, driven by a significant reduction in bills payable and a slight increase in trade payables Trade Payables and Bills Payable (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 367,213 | 363,403 | | Bills payable | 12,490 | 40,621 | | **Total** | **379,703** | **404,024** | Aging Analysis of Trade Payables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 157,804 | 207,405 | | 31 to 60 days | 102,347 | 39,702 | | 61 to 90 days | 60,959 | 67,922 | | Over 90 days | 46,103 | 48,374 | | **Total** | **367,213** | **363,403** | [Share Capital](index=16&type=section&id=Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital remained at **RMB 8,930 thousand**, consistent with January 1, 2025, with a total of **1,009,500,000** shares Share Capital Structure | Item | Number of Shares | Amount (HKD) | | :--- | :--- | :--- | | Authorized share capital (HKD 0.01 per share) | 10,000,000,000 | 100,000,000 | | Issued and fully paid share capital (June 30, 2025) | 1,009,500,000 | 10,095,000 | - As of June 30, 2025, the issued and fully paid share capital was presented as **RMB 8,930 thousand**[40](index=40&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview](index=17&type=section&id=Business%20Overview) The Group, an applied chemical intermediate supplier in the integrated chemical services market, primarily manufactures and sells chemical and pharmaceutical products through a global network, optimizing its product portfolio and strategic layout to address industry challenges and pursue global expansion - The Group is an applied chemical intermediate supplier in the integrated chemical services market, primarily engaged in the production and sale of chemicals and the sale of chemicals manufactured by third-party manufacturers[41](index=41&type=chunk) - The Group operates seven main business segments: Methylamine Industrial Series, Jinhaiwei New Materials, Advanced Material Intermediates Series, Green Products, Health Products, Iodine Derivative Series and Related Products, and Gegexiang Select[41](index=41&type=chunk) - Facing challenges in China's chemical industry such as sluggish demand, supply-demand imbalance, and declining profit margins, the Group achieved resilient growth through technological innovation, supply chain management, and market segmentation, while actively exploring global expansion[45](index=45&type=chunk)[46](index=46&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's revenue increased by **3.7%** year-over-year to **RMB 1,856.7 million**, and profit for the period surged by **77.1%** to **RMB 7.9 million**; revenue growth was driven by green products and iodine derivative series, while profit growth was influenced by exchange gains and VAT refunds, partially offset by a decline in gross profit - Revenue for the period was approximately **RMB 1,856.7 million**, an increase of **3.7%** year-over-year; profit for the period significantly increased by **77.1%** to approximately **RMB 7.9 million**[47](index=47&type=chunk) - The increase in profit for the period was primarily due to higher net exchange gains (resulting from the appreciation of Russian Ruble and Mexican Peso against RMB) and an increase in other income of approximately **RMB 7.5 million** due to additional VAT credit refund policies[47](index=47&type=chunk) [Revenue](index=21&type=section&id=Revenue) The Group's total revenue grew by **3.7%**, contributed by both self-manufactured and third-party produced chemicals; revenue from iodine derivative series and related products and green products significantly increased, while methylamine industrial series and advanced material intermediates series declined Total Revenue by Business Segment (RMB thousand) | Business Segment | H1 2025 | % of Total Revenue | H1 2024 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Methylamine Industrial Series | 600,981 | 32.4% | 617,525 | 34.5% | | Iodine Derivative Series and Related Products | 588,339 | 31.7% | 440,302 | 24.6% | | Jinhaiwei New Materials | 399,090 | 21.5% | 399,570 | 22.3% | | Advanced Material Intermediates Series | 132,537 | 7.1% | 218,071 | 12.2% | | Green Products | 111,485 | 6.0% | 94,706 | 5.3% | | Health Products | 15,001 | 0.8% | 13,321 | 0.7% | | Gegexiang Select | 978 | 0.1% | — | 0.0% | | Others | 8,301 | 0.4% | 6,699 | 0.4% | | **Total** | **1,856,712** | **100.0%** | **1,790,194** | **100.0%** | Total Revenue by Product Source (RMB thousand) | Product Source | H1 2025 | % of Total Revenue | H1 2024 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Self-manufactured chemicals | 1,409,518 | 75.9% | 1,406,830 | 78.6% | | Third-party manufactured chemicals | 438,893 | 23.7% | 376,665 | 21.0% | | Others | 8,301 | 0.4% | 6,699 | 0.4% | | **Total** | **1,856,712** | **100.0%** | **1,790,194** | **100.0%** | [Methylamine Industrial Series](index=23&type=section&id=Methylamine%20Industrial%20Series) Revenue from the methylamine industrial series decreased by **2.7%** to **RMB 601.0 million**, primarily due to intense market competition leading to lower sales volume, market prices, and profit margins; increased sales of choline chloride and betaine were partially offset by lower average selling prices due to falling trimethylamine prices - Revenue from the methylamine industrial series decreased by **2.7%** to approximately **RMB 601.0 million**, mainly due to intense market competition leading to lower sales volume, market prices, and profit margins for methylamine[52](index=52&type=chunk) - Sales volume of choline chloride and betaine increased by approximately **10%** and **57%** respectively, but their average selling prices decreased by approximately **3%** to **7%**[52](index=52&type=chunk)[53](index=53&type=chunk) [Iodine Derivative Series and Related Products](index=24&type=section&id=Iodine%20Derivative%20Series%20and%20Related%20Products) Revenue from the iodine derivative series and related products significantly increased by **33.6%** to **RMB 588.3 million**, primarily due to expanded market share and increased market penetration leading to higher sales volume; iodine sales volume notably grew by **104%**, with an improved average selling price - Revenue from the iodine derivative series and related products increased by **33.6%** to approximately **RMB 588.3 million**, primarily due to expanded market share and increased market penetration[54](index=54&type=chunk) - Sales volume of traded iodine derivatives increased by approximately **14%**, with average selling price increasing by approximately **9%**; iodine sales volume significantly increased by approximately **104%**, and its average selling price increased by approximately **6%**[54](index=54&type=chunk) [Jinhaiwei New Materials](index=25&type=section&id=Jinhaiwei%20New%20Materials) Revenue from the Jinhaiwei New Materials segment slightly decreased by **0.1%** to **RMB 399.1 million**; TDI sales volume increased by approximately **15%**, but its average selling price fell by approximately **28%** due to US tariffs and market oversupply, while resin sales volume decreased by **17%**, but its average selling price increased by **40%** due to the introduction of higher-priced alternatives - Revenue from Jinhaiwei New Materials slightly decreased by **0.1%** to approximately **RMB 399.1 million**, mainly affected by fluctuations in TDI and polymeric MDI market prices and slow recovery in downstream industries[55](index=55&type=chunk) - TDI sales volume increased by approximately **15%**, but its average selling price decreased by approximately **28%**; resin sales volume decreased by approximately **17%**, but its average selling price increased by approximately **40%**[55](index=55&type=chunk) [Advanced Material Intermediates Series](index=25&type=section&id=Advanced%20Material%20Intermediates%20Series) Revenue from the advanced material intermediates series significantly decreased to **RMB 132.5 million**, primarily due to declining domestic demand and production halts caused by reactor facility malfunctions, impacting sales volumes of isooctanoic acid and diethyl sulfate; the average selling price of isooctanoic acid decreased by **28%** due to new market entrants - Revenue from the advanced material intermediates series decreased from approximately **RMB 218.1 million** to approximately **RMB 132.5 million**, mainly due to declining domestic demand and production halts caused by reactor facility malfunctions[56](index=56&type=chunk) - Sales volumes of isooctanoic acid and diethyl sulfate decreased by approximately **19%** and **18%** respectively; the average selling price of isooctanoic acid decreased by approximately **28%**[57](index=57&type=chunk) [Green Products](index=26&type=section&id=Green%20Products) Revenue from green products (cardanol) significantly increased by **17.7%** to **RMB 111.5 million**, primarily benefiting from European market recovery, increased exports, higher production capacity, and rising raw material prices driving up finished product selling prices - Revenue from cardanol significantly increased by **17.7%** to approximately **RMB 111.5 million**, primarily due to increased exports and production capacity driven by the recovery of the European market[58](index=58&type=chunk) - Sales volume delivered to Europe increased by over **30%**, cardanol sales volume increased by approximately **11.0%**, and its average selling price also increased by approximately **6.0%**[58](index=58&type=chunk) [Health Products](index=26&type=section&id=Health%20Products) Revenue from the health products segment increased by **12.6%** to **RMB 15.0 million**, mainly due to increased sales of products like Cefpodoxime Proxetil Dispersible Tablets, benefiting from new customer acquisition through trade exhibitions and online promotions - Revenue from health products increased by **12.6%** to approximately **RMB 15.0 million**, primarily due to increased sales volume (especially Cefpodoxime Proxetil Dispersible Tablets)[59](index=59&type=chunk) - The Company is developing a moxifloxacin hydrochloride side chain production line, expected to be operational by the end of 2025[43](index=43&type=chunk) [Gegexiang Select](index=27&type=section&id=Gegexiang%20Select) Gegexiang Select, a new business segment, contributed **RMB 1.0 million** in revenue this period, primarily from increased supplement sales; the Company plans to establish a consumer product sales platform and develop its own brands through event platforms, influencers, and KOL live streaming - The Gegexiang Select segment contributed **RMB 1.0 million** in revenue, primarily due to increased sales of supplements[60](index=60&type=chunk) - The Group plans to sign influencers and Key Opinion Leaders (KOLs) for live streaming sales, establish a consumer product sales platform, and develop its own brand products[60](index=60&type=chunk) [Total Revenue by Geographical Location](index=27&type=section&id=Total%20Revenue%20by%20Geographical%20Location) Mainland China remains the Group's largest revenue source, accounting for **76.4%** of total revenue; revenue from Europe and Vietnam increased, while revenue from other Asian countries (excluding Mainland China and Vietnam) slightly decreased Total Revenue by Geographical Location (RMB thousand) | Region | H1 2025 | % of Total Revenue | H1 2024 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 1,418,926 | 76.4% | 1,411,161 | 78.8% | | Europe | 183,474 | 9.9% | 148,735 | 8.3% | | Vietnam | 85,828 | 4.6% | 77,264 | 4.3% | | Other Asian Countries (excluding Mainland China and Vietnam) | 95,906 | 5.2% | 101,916 | 5.7% | | Others | 72,578 | 3.9% | 51,118 | 2.9% | | **Total** | **1,856,712** | **100.0%** | **1,790,194** | **100.0%** | - Revenue from Mainland China accounted for the majority of total revenue, at **76.4%** in H1 2025 (H1 2024: **78.8%**)[63](index=63&type=chunk) [Cost of Sales](index=28&type=section&id=Cost%20of%20Sales) Cost of sales increased from **RMB 1,595.7 million** to **RMB 1,686.2 million**, primarily due to higher production costs for iodine and iodine derivatives, partially offset by reduced raw material costs from lower sales volumes of methylamine, isooctanoic acid, and diethyl sulfate - Cost of sales increased from approximately **RMB 1,595.7 million** to approximately **RMB 1,686.2 million**[64](index=64&type=chunk) - The increase in cost of sales was primarily due to higher production costs for iodine and iodine derivatives, partially offset by reduced raw material costs from lower sales volumes of methylamine, isooctanoic acid, and diethyl sulfate[64](index=64&type=chunk) [Gross Profit](index=29&type=section&id=Gross%20Profit) Gross profit decreased from **RMB 194.5 million** to **RMB 170.5 million**, with the overall gross profit margin falling from **10.9%** to **9.2%**, mainly due to lower gross profit in the advanced material intermediates series segment and rapidly rising raw material costs for green products and iodine derivative series exceeding market price increases Total Gross Profit and Gross Profit Margin by Business Segment (RMB thousand) | Business Segment | H1 2025 Gross Profit | H1 2025 Gross Profit Margin % | H1 2024 Gross Profit | H1 2024 Gross Profit Margin % | | :--- | :--- | :--- | :--- | :--- | | Methylamine Industrial Series | 93,800 | 15.6% | 83,328 | 13.5% | | Iodine Derivative Series and Related Products | 27,020 | 4.6% | 36,873 | 8.4% | | Jinhaiwei New Materials | 26,639 | 6.7% | 31,519 | 7.9% | | Advanced Material Intermediates Series | 4,294 | 3.2% | 21,318 | 9.8% | | Green Products | 12,803 | 11.5% | 17,568 | 18.6% | | Health Products | 4,299 | 28.7% | 3,219 | 24.2% | | Gegexiang Select | 480 | 49.1% | 6 | 730.6% | | Others | 1,128 | 13.6% | 669 | 10.0% | | **Total** | **170,463** | **9.2%** | **194,500** | **10.9%** | - The overall gross profit margin decreased from **10.9%** in H1 2024 to **9.2%** in H1 2025[66](index=66&type=chunk) - The decrease in gross profit and gross profit margin was mainly due to lower gross profit in the advanced material intermediates series segment, and rapidly rising raw material costs for green products and iodine derivative series and related products exceeding their market price increases[67](index=67&type=chunk) [Other Income](index=30&type=section&id=Other%20Income) Other income significantly increased from **RMB 2.7 million** to **RMB 12.3 million**, primarily due to approximately **RMB 7.5 million** from additional VAT credit policies and higher government grants - Other income increased from approximately **RMB 2.7 million** to approximately **RMB 12.3 million**[68](index=68&type=chunk) - The increase was mainly due to income of approximately **RMB 7.5 million** from additional VAT credit policies, and other government grants increasing from approximately **RMB 1.4 million** to **RMB 2.6 million**[68](index=68&type=chunk) [Other Gains and Losses](index=30&type=section&id=Other%20Gains%20and%20Losses) The Group recorded net other gains of approximately **RMB 8.9 million** this period, a turnaround from net other losses of approximately **RMB 0.2 million** in the prior period, primarily due to an increase of approximately **RMB 9.5 million** in net exchange gains from the appreciation of various currencies (such as Russian Ruble and Mexican Peso) against RMB - The Group recorded net other gains of approximately **RMB 8.9 million**, compared to net other losses of approximately **RMB 0.2 million** in the prior period[70](index=70&type=chunk) - The increase in gains was primarily due to an increase in net exchange gains of approximately **RMB 9.5 million** resulting from the appreciation of various currencies (such as Russian Ruble and Mexican Peso) against RMB during the period[70](index=70&type=chunk) [Selling and Distribution Expenses](index=31&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses slightly decreased to **RMB 72.3 million**, mainly due to a slight reduction in logistics costs (including transportation, port fees, and shipping costs) resulting from lower sales volumes of certain products like methylamine and ethylene glycol - Selling and distribution expenses slightly decreased from approximately **RMB 75.8 million** to approximately **RMB 72.3 million**[71](index=71&type=chunk) - The decrease was primarily due to a slight reduction in logistics costs resulting from lower sales volumes of certain products[71](index=71&type=chunk) [Administrative Expenses](index=31&type=section&id=Administrative%20Expenses) Administrative expenses slightly decreased to **RMB 65.5 million**, mainly due to reduced consulting fees related to a mixed martial arts competition held in Macau last year, partially offset by increased staff costs and share-based payment expenses in Singapore - Administrative expenses slightly decreased from approximately **RMB 65.8 million** to approximately **RMB 65.5 million**[73](index=73&type=chunk) - The decrease was primarily due to a reduction in consulting fees of approximately **RMB 2.6 million** resulting from lower expenses related to a mixed martial arts competition held in Macau last year[73](index=73&type=chunk) [Research and Development Expenses](index=32&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses decreased to **RMB 26.0 million**, primarily due to the completion of certain production technology improvement projects last year, leading to reduced raw material costs - Research and development expenses decreased from approximately **RMB 26.9 million** to approximately **RMB 26.0 million**[74](index=74&type=chunk) - The decrease was primarily due to the completion of certain production technology improvement projects last year, leading to reduced raw material costs[74](index=74&type=chunk) [Finance Costs](index=33&type=section&id=Finance%20Costs) Finance costs remained relatively stable, slightly changing from **RMB 19.9 million** to **RMB 19.6 million**, with no significant fluctuations during the period - Finance costs changed from approximately **RMB 19.9 million** to approximately **RMB 19.6 million**, with no significant fluctuations during the period[75](index=75&type=chunk) [Income Tax Expense](index=33&type=section&id=Income%20Tax%20Expense) Income tax expense increased to **RMB 2.7 million**, consistent with the rise in profit before tax; the effective tax rate decreased to **25.8%**, mainly influenced by under-provision for prior period income tax expenses - Income tax expense increased from approximately **RMB 2.5 million** to approximately **RMB 2.7 million**[76](index=76&type=chunk) - The effective tax rate was approximately **25.8%** in H1 2025 (2024: **35.8%**), with the decrease attributed to the impact of under-provision for prior year income tax expenses recognized in the previous period[76](index=76&type=chunk) [Profit for the Period](index=33&type=section&id=Profit%20for%20the%20Period) For the six months ended June 30, 2025, the Group recorded a profit for the period of approximately **RMB 7.9 million**, a significant increase from approximately **RMB 4.4 million** in the prior period, reflecting the combined impact of the aforementioned financial fluctuations - For the six months ended June 30, 2025, the Group recorded a profit for the period of approximately **RMB 7.9 million**, compared to approximately **RMB 4.4 million** in the prior period[77](index=77&type=chunk) [Outlook](index=34&type=section&id=Outlook) Looking ahead to H2 2025, cost pressures in the chemical industry are expected to ease, supply-demand balance will improve, and the transition towards green and environmentally friendly practices will continue; the Group will persist in expanding production capacity, diversifying regional markets, and strengthening supply chain resilience to achieve long-term sustainable value growth - Looking ahead to H2 2025, falling prices of key raw materials such as crude oil and coal are expected to ease cost pressures, and the supply-demand balance in the chemical industry will improve[78](index=78&type=chunk) - The Group will adhere to its strategic commitments, steadily advance with intelligent manufacturing equipment, continuously expand production capacity, and diversify regional markets through tiered customer cooperation and customized services[78](index=78&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=35&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group funds its working capital through internal resources and borrowings; as of June 30, 2025, total assets increased to **RMB 2,090.5 million**, and bank balances and cash rose to **RMB 155.3 million**; total borrowings increased to **RMB 926.8 million**, leading to a higher gearing ratio of **146.6%** - As of June 30, 2025, the Group's total assets reached approximately **RMB 2,090.5 million** (December 31, 2024: **RMB 2,046.5 million**)[80](index=80&type=chunk) - Bank balances and cash amounted to approximately **RMB 155.3 million** (December 31, 2024: **RMB 101.5 million**)[80](index=80&type=chunk) - Borrowings (including loans from related companies) were approximately **RMB 926.8 million** (December 31, 2024: **RMB 852.2 million**)[80](index=80&type=chunk) - The Group's gearing ratio was **146.6%** (December 31, 2024: **137.1%**), with the increase primarily due to higher borrowings[81](index=81&type=chunk) [Principal Risks and Uncertainties and Risk Management](index=36&type=section&id=Principal%20Risks%20and%20Uncertainties%20and%20Risk%20Management) The Group faces market risks (currency and interest rate risks), credit risk, and liquidity risk; management monitors and assesses these risks, but currently has no foreign currency or interest rate hedging policies - The Group's financial position, operating results, business, and outlook will be affected by various risks and uncertainties, including market risk, credit risk, and liquidity risk[82](index=82&type=chunk) [Market Risk](index=36&type=section&id=Market%20Risk) The Group's activities primarily expose it to currency risk and interest rate risk, with no changes in how these risks are managed and measured - The Group's activities primarily expose it to currency risk and interest rate risk, and there have been no changes in these risks or the way they are managed and measured[83](index=83&type=chunk) [Currency Risk](index=36&type=section&id=Currency%20Risk) The Group is exposed to foreign currency risk, mainly from financial instruments denominated in USD, Russian Ruble, Mexican Peso, and Ukrainian Hryvnia; there is currently no foreign currency hedging policy, but management monitors and considers hedging when necessary - The Group currently has no foreign currency hedging policy, but management monitors foreign exchange risk and will consider hedging significant foreign currency risks when necessary[84](index=84&type=chunk) - The Group's foreign currency transactions are primarily denominated in RMB and USD, and are subject to foreign exchange risk arising from future commercial transactions and recognized assets and liabilities denominated in RMB[92](index=92&type=chunk) [Interest Rate Risk](index=36&type=section&id=Interest%20Rate%20Risk) The Group faces fair value interest rate risk on fixed-rate financial instruments and cash flow interest rate risk on variable-rate financial liabilities; there is currently no interest rate hedging policy, but management monitors and assesses the potential impact of interest rate changes - The Group is exposed to fair value interest rate risk on certain fixed-rate financial assets, financial liabilities, and lease liabilities[85](index=85&type=chunk) - The Group currently has no interest rate hedging policy; management monitors interest rate exposure and will consider hedging significant interest rate risks when necessary[86](index=86&type=chunk) [Credit Risk](index=37&type=section&id=Credit%20Risk) The Group's maximum credit risk arises from trade receivables, through credit limit determination, approval, and monitoring procedures; credit risk for bills receivable is limited as they are issued by highly-rated banks, and credit risk for bank balances and restricted bank deposits is also limited - The Group's maximum credit risk arises from the carrying amounts of the relevant recognized financial assets stated in the condensed consolidated statement of financial position at the end of the reporting period, primarily attributable to its trade receivables[87](index=87&type=chunk) - The credit risk for bills receivable at fair value through other comprehensive income is limited because these bills are issued by banks with high credit ratings from international credit rating agencies and no history of default[88](index=88&type=chunk) - The credit risk for bank balances and restricted bank deposits is limited because the counterparties are banks with high credit ratings from international credit rating agencies[89](index=89&type=chunk) [Liquidity Risk](index=38&type=section&id=Liquidity%20Risk) The Group manages liquidity risk by monitoring and maintaining adequate levels of cash and cash equivalents, adopting prudent treasury policies, and continuously assessing customers' financial standing - The Group monitors and maintains levels of cash and cash equivalents deemed adequate by management to fund its operations and mitigate the impact of cash flow fluctuations[90](index=90&type=chunk) - The Group adopts prudent treasury policies, thereby maintaining a sound liquidity position throughout the period[91](index=91&type=chunk) [Capital Expenditure](index=39&type=section&id=Capital%20Expenditure) During the period, the Group's capital expenditure amounted to approximately **RMB 70.1 million**, primarily for additions to property, plant and equipment and construction in progress, representing an increase from the prior period - During the period, the Group's capital expenditure, including additions to property, plant and equipment and construction in progress in the course of operations, amounted to approximately **RMB 70.1 million** (2024: **RMB 55.4 million**)[93](index=93&type=chunk) [Capital Commitments](index=39&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments were approximately **RMB 10.9 million**, primarily for the purchase of machinery and equipment in Mainland China, planned to be funded by internal resources and borrowings - As of June 30, 2025, the Group's capital commitments amounted to approximately **RMB 10.9 million** (December 31, 2024: **RMB 17.9 million**)[94](index=94&type=chunk) - Capital commitments primarily involve the purchase of machinery and equipment for current use in Mainland China, intended to be funded by cash generated from operations and bank and other borrowings[94](index=94&type=chunk) [Pledge of Assets](index=40&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged various assets as collateral for borrowings, including restricted bank deposits, right-of-use assets, property, plant and equipment, bills receivable, cash and cash equivalents, inventories, and trade and other receivables and prepayments - Assets pledged by the Group include restricted bank deposits of approximately **RMB 30.4 million**, right-of-use assets of approximately **RMB 62.9 million**, property, plant and equipment of approximately **RMB 317.8 million**, bills receivable of approximately **RMB 81.1 million**, cash and cash equivalents of approximately **RMB 1.9 million**, inventories of approximately **RMB 17.1 million**, and trade and other receivables and prepayments of approximately **RMB 1.3 million**[95](index=95&type=chunk) [Contingent Liabilities](index=40&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: Nil)[96](index=96&type=chunk) [Dividends](index=40&type=section&id=Dividends) The Board has resolved not to recommend any interim dividend for the six months ended June 30, 2025 - The Board has resolved not to recommend any interim dividend for the six months ended June 30, 2025 (2024: Nil)[97](index=97&type=chunk) [Employees and Remuneration Policy](index=40&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **1,093** employees, with total staff costs of approximately **RMB 71.8 million**; remuneration policies are based on market norms and individual performance, with share option and share award schemes to incentivize and retain talent - As of June 30, 2025, the Group had a total of **1,093** employees (2024: **1,086** employees)[98](index=98&type=chunk) - Total staff costs (including directors' emoluments) for the six months ended June 30, 2025, were approximately **RMB 71.8 million** (2024: **RMB 67.9 million**)[98](index=98&type=chunk) - The Group has a share option scheme and a share award scheme, designed to recognize and reward contributions from eligible participants and provide incentives to retain talent[100](index=100&type=chunk)[101](index=101&type=chunk) [Material Investments](index=43&type=section&id=Material%20Investments) For the six months ended June 30, 2025, the Group held no material investments or capital assets - For the six months ended June 30, 2025, the Group held no material investments or capital assets (2024: Nil)[105](index=105&type=chunk) [Future Plans for Material Investments and Capital Expenditure](index=43&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Expenditure) Beyond what was disclosed in the prospectus, the Group has no other plans for material investments or capital expenditure in the coming year; future acquisitions will be funded by internal resources and other fundraising activities - Other than those disclosed in the prospectus, the Group has no other plans for material investments or capital expenditure in the coming year[106](index=106&type=chunk) - The Group will fund future acquisitions through internal resources and other fundraising activities, including but not limited to issuing new debt or equity instruments[106](index=106&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=43&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Group neither acquired nor disposed of any of its material subsidiaries, associates, or joint ventures - The Group neither acquired nor disposed of any of its material subsidiaries, associates, or joint ventures for the six months ended June 30, 2025[107](index=107&type=chunk) [Events After Reporting Period](index=43&type=section&id=Events%20After%20Reporting%20Period) There were no significant events after the reporting period up to the date of this announcement for the six months ended June 30, 2025 - There were no significant events after the six months ended June 30, 2025, up to the date of this announcement[108](index=108&type=chunk) [Other Information](index=44&type=section&id=Other%20Information) [Audit Committee and Review of Condensed Consolidated Financial Statements](index=44&type=section&id=Audit%20Committee%20and%20Review%20of%20Condensed%20Consolidated%20Financial%20Statements) The Audit Committee reviewed the Group's accounting principles, internal control and risk management systems, and financial reporting matters, including the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, confirming adequate disclosure and no disagreements - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's accounting principles and practices, internal control and risk management, and financial reporting matters[109](index=109&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and confirmed that adequate disclosures have been made with no disagreements with the Audit Committee[109](index=109&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period ended June 30, 2025, and up to the date of this announcement - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period ended June 30, 2025, and up to the date of this announcement[110](index=110&type=chunk) [Directors' Interests in Competing Businesses](index=44&type=section&id=Directors%27%20Interests%20in%20Competing%20Businesses) No director holds any interest in a business that competes or is likely to compete with the Group's business - No director holds any interest in a business that competes or is likely to compete with the Group's business[111](index=111&type=chunk) [Directors' Securities Transactions](index=45&type=section&id=Directors%27%20Securities%20Transactions) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance with the required standards during the period ended June 30, 2025, and up to the date of this announcement - 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, as its own code of conduct[112](index=112&type=chunk) - Following specific enquiries made to all directors, each director has confirmed compliance with the required standards set out in the Model Code for the period ended June 30, 2025, and up to the date of this announcement[112](index=112&type=chunk) [Corporate Governance Practices](index=45&type=section&id=Corporate%20Governance%20Practices) The Company complied with all code provisions of the Corporate Governance Code, except for code provision C.2.1 (separation of roles of Chairman and Chief Executive), as the Board believes the combined role provides strong and consistent leadership and will be reviewed periodically - The Company has complied with all code provisions of the Corporate Governance Code, except for code provision C.2.1 (the roles of Chairman and Chief Executive should be separate)[113](index=113&type=chunk) - Mr. Yin Yanbin serves as both the Chairman of the Board and Chief Executive Officer, and the Board believes this arrangement provides strong and consistent leadership for the Company[114](index=114&type=chunk)[115](index=115&type=chunk) - For the six months ended June 30, 2025, the Chairman held one meeting with independent non-executive directors without the presence of other executive directors[115](index=115&type=chunk) [Publication of Results Announcement on HKEX and Company Website and By Order of the Board](index=46&type=section&id=Publication%20of%20Results%20Announcement%20on%20HKEX%20and%20Company%20Website%20and%20By%20Order%20of%20the%20Board) This interim results announcement has been published on the HKEX and the Company's website, and the interim report containing all required information will be dispatched to shareholders and published on the websites in due course - This interim results announcement will be published on the HKEX website www.hkexnews.hk and the Company's website www.goldenhighway.com[116](index=116&type=chunk) - The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the respective websites of the HKEX and the Company in due course[116](index=116&type=chunk)

香港交易及結算所有限公司和香港聯合交易所有限公司對本公告之內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就因本公告之全部或任何部份內容所產生或因依賴該等內容所引致之 任 何 損 失 承 擔 任 何 責 任。 （於百慕達註冊成立之有限公 司） （股份代 號：111） 2025年中期業績公告 董事會欣然宣佈本集團截至 2025 年 6 月 3 0 日 止 6 個月的未經審核綜合業 績如下： 簡明綜合損益表 截 至2025年6月3 0日 止6個月－未經審核 | | | 截 至6月3 0日 | 止6個 月 | | --- | --- | --- | --- | | | | 2025年 | 2024年 | | | 附 註 | 千港元 | 千港元 | | | | （未經審核）（未經審核） | | | 收 益 | 3 | 91,808 | 89,283 | | 其他收入 | 3 | 412 | 3,068 | | 其 他 收 益／（虧 損）淨 額 | 3 | 10,625 | (5,641) | | | | 102,845 | 86,710 | | ...

Financial Performance - For the six months ended June 30, 2025, the group recorded revenue of approximately €13.0 million, a decrease of about 2.1% compared to €13.2 million for the same period in 2024[4] - The group achieved a profit attributable to equity holders of approximately €40,538, a significant improvement from a loss of €358,681 in the prior year[4] - Gross profit for the period was €4,638,775, compared to €4,565,811 for the same period in 2024, indicating a slight increase in gross margin[6] - Total revenue for the six months ended June 30, 2025, was €12,961,756, a decrease of 2.06% from €13,235,043 in 2024[14] - Revenue from home phones was €8,129,876, down 5.31% from €8,586,874 in 2024[14] - Revenue from office phones decreased significantly by 38.67% to €1,055,025 from €1,722,427 in 2024[14] - Revenue from the Asia-Pacific and Middle East regions increased substantially to €2,509,783, up 113.33% from €1,178,005 in 2024[15] - Basic earnings per share for the six months ended June 30, 2025, was €0.01, compared to a loss of €0.09 in 2024[20] - The company reported a profit of approximately €41,000 for the six months ended June 30, 2025, compared to a loss of about €400,000 for the same period in 2024[46] Assets and Liabilities - The total assets decreased to €26,254,566 as of June 30, 2025, down from €30,688,368 as of December 31, 2024[8] - Current liabilities decreased to €17,742,358 from €21,812,603, reflecting improved liquidity management[9] - Trade receivables as of June 30, 2025, were €7,198,884, a decrease from €9,427,392 as of December 31, 2024[22] - Trade payables decreased to €4,215,667 as of June 30, 2025, from €6,805,528 as of December 31, 2024[24] - The total amount of trade receivables pledged for bank financing was approximately €3.6 million as of June 30, 2025, compared to €4.7 million as of December 31, 2024[57] - The group had outstanding foreign exchange forward contracts with a nominal principal amount of approximately RMB 434 million as of June 30, 2025, up from RMB 308 million as of December 31, 2024[51] - The group had various bank borrowings and overdrafts amounting to approximately €6.4 million as of June 30, 2025, down from approximately €7.3 million as of December 31, 2024[53] Dividends and Taxation - The company does not recommend the payment of any dividends for the six months ended June 30, 2025[5] - The company did not declare or pay any dividends for the six months ended June 30, 2025, consistent with 2024[29] - The effective tax rate for Hong Kong profits tax was maintained at 16.5% for both 2025 and 2024[17] - The company reported a current tax expense of €21,102 for the six months ended June 30, 2025[18] Operational Highlights - The company continues to focus on the design and development of telecommunications products under brands such as Alcatel and Swissvoice[10] - Home phone sales decreased by approximately €0.5 million or 5.3%, while the global home phone market is expected to decline at a rate of 15% annually[34] - The sales of office phones dropped by approximately €0.7 million or 38.8%, primarily due to product transition adjustments from a major European customer[34] - Sales to France decreased by 4.2% to approximately €6.2 million, accounting for about 48.1% of total revenue for the period[40] - Sales to the Asia-Pacific and Middle East regions increased by 113.1% to approximately €2.5 million[40] Cost Management - Administrative expenses decreased from approximately €2.9 million to €2.6 million, mainly due to resource allocation optimization[45] - Total employee costs for the six months ended June 30, 2025, were approximately €1.9 million, consistent with the same period in 2024[52] Financial Policies - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[12] - The group has adopted a conservative treasury policy to manage credit risk and liquidity needs[49] - The group has implemented a hedging policy to manage foreign exchange risks related to RMB and USD[51] Other Information - There were no significant investments, acquisitions, or disposals of subsidiaries as of June 30, 2025[48] - The group did not have any significant contingent liabilities as of June 30, 2025, consistent with December 31, 2024[55] - There were no changes in the capital structure of the company for the six months ended June 30, 2025[56] - As of June 30, 2025, the group had cash and cash equivalents of approximately €0.7 million, a decrease of about €1.0 million from €1.7 million as of December 31, 2024[53] - The net capital debt ratio as of June 30, 2025, was approximately 57%, compared to about 55% as of December 31, 2024[54]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 依賴該等內容而引致的任何損失承擔任何責任。 本公告載有涉及風險及不確定因素的前瞻性陳述。除過往事實陳述以外的所有陳述均為前瞻 性陳述。該等陳述涉及已知及未知的風險、不確定及其他因素，當中部分並非本公司所能控 制，且可導致實際業績、表現或成果與該等前瞻性陳述所明示或暗示者存在重大差異。 閣 下不應依賴前瞻性陳述作為未來事件的預測。本公司並無責任因任何新資料、未來事件或其 他原因而更新或修改任何前瞻性陳述。 XtalPi Holdings Limited （ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） （股份代號：2228） 晶泰控股有限公司 截至2025年6月30日止六個月 的中期業績公告 晶泰控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及 其附屬公司（統稱「本集團」或「我們」）截至2025年6月30日止六個月（「報告期間」） 之未經審計簡明合併業績，連同2024年同期之比較數字。該等本集團未經審計 簡明合 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：���） 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 業績概覽 截至二零二五年六月三十日止六個月之財務業績概要及其他重要事件包括： – 1 – • 本公司股東應佔虧損減少約2,220,000美元，主要是由於本集團的營運及研 發開支約2,250,000美元。 • Senstend™於中國的進展方面，江蘇萬邦醫藥的主要目標仍為於二零二五年 底前獲得入市批准，並預計於二零二六年第一季度開始首次商業化上市。倘 國家藥品監督管理局授予Senstend™進口許可證，江蘇萬邦醫藥將須向本集 團支付5,000,000美元（扣除中國預扣稅前）。此外，Senstend™於中國進行首 次商業銷售後，江蘇萬邦醫藥將須向本集團支付2,000,000美元（扣除中國預 扣稅前）。 • Fortacin™於美國的進展方面，本公司已評估兩家知名臨床研究機構（「臨床 研究機構」）關於 ...