Announcement Background and Purpose Brii Biosciences Limited issues a supplemental announcement to provide additional details on the use of net proceeds from its global offering in the 2024 annual report, specifically regarding unutilized funds carried forward to January 1, 2024 - This announcement supplements the 2024 annual report, focusing on the use of net proceeds from the global offering[2](index=2&type=chunk) - It highlights the specific amount of **unutilized net proceeds** as of December 31, 2023, carried forward to January 1, 2024[2](index=2&type=chunk) [Details on Use of Net Proceeds from Global Offering](index=2&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%AD%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94%E8%A9%B3%E6%83%85) This section details the original and revised uses of the company's global offering net proceeds, utilized amounts as of December 31, 2024, and unutilized funds carried forward from December 31, 2023, to January 1, 2024, covering various R&D projects and working capital - As of December 31, 2024, a total of **HKD 25.256 million** of net proceeds from the global offering has been utilized (**HKD 9.941 million** from Group 1 allocation and **HKD 15.315 million** from Group 2 allocation)[3](index=3&type=chunk)[4](index=4&type=chunk) - As of December 31, 2024, **HKD 1.760 million** remains unutilized, primarily allocated to Group 1 R&D projects and working capital[3](index=3&type=chunk) [Unutilized Net Proceeds as of December 31, 2023, Carried Forward to January 1, 2024](index=2&type=section&id=2.1%20%E6%88%AA%E8%87%B32023%E5%B9%B412%E6%9C%8831%E6%97%A5%E6%9C%AA%E5%8B%95%E7%94%A8%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%AD%E6%B7%A8%E9%A1%8D%E7%B5%90%E8%BD%89%E8%87%B32024%E5%B9%B41%E6%9C%881%E6%97%A5) As of December 31, 2023, **HKD 14.666 million** of the company's global offering net proceeds remained unutilized and was carried forward to January 1, 2024, primarily for R&D projects like BRII-179, BRII-877, and working capital Unutilized Net Proceeds as of December 31, 2023, Carried Forward to January 1, 2024 (Million HKD) | Project | Original Proposed Use (Million HKD) | Revised Proposed Use (Million HKD) | Unutilized Net Proceeds (Million HKD) | Percentage of Original Total Net Proceeds (%) | | :------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------- | | BRII-179 | 11.959 | 11.959 | 7.848 | 46% | | BRII-732 | 1.307 | 1.307 | 1.400 | 5% | | BRII-835 | 0.261 | 0.261 | 1.307 | 5% | | BRII-877 | 14.666 | 14.666 | 5.141 | 56% | | BRII-753 | 1.400 | 1.400 | 1.400 | 6% | | Other R&D Projects | 1.517 | 1.517 | 1.517 | 32% | | Working Capital and Other General Corporate Purposes | 8.373 | 8.373 | 11.959 | 1% | | **Total** | **26.138** | **26.138** | **14.666** | **100%** | [Overview of Net Proceeds Utilization as of December 31, 2024](index=2&type=section&id=2.2%20%E6%88%AA%E8%87%B32024%E5%B9%B412%E6%9C%8831%E6%97%A5%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%AD%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94%E6%A6%82%E8%A7%88) As of December 31, 2024, a total of **HKD 25.256 million** from the global offering net proceeds has been utilized (**HKD 9.941 million** from Group 1 and **HKD 15.315 million** from Group 2), with **HKD 1.760 million** remaining unutilized, primarily in Group 1 R&D projects and working capital [Utilization of Group 1 Allocated Funds](index=2&type=section&id=2.2.1%20%E7%AC%AC%E4%B8%80%E7%BB%84%E5%88%86%E9%85%8D%E7%9A%84%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) Of the **HKD 26.138 million** net proceeds from the global offering allocated to Group 1, **HKD 9.941 million** was utilized as of December 31, 2024, primarily for R&D projects like BRII-179, BRII-877, and working capital, with **HKD 1.760 million** remaining unutilized Utilization of Group 1 Allocated Funds as of December 31, 2024 (Million HKD) | Project/Purpose | Original Proposed Use (Million HKD) | Revised Proposed Use (Million HKD) | Funds Utilized (Million HKD) | Unutilized Net Proceeds as of 2024-12-31 (Million HKD) | | :--------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :----------------------------------------------------------------- | | BRII-179 | 11.959 | 11.959 | 6.818 | 1.555 | | BRII-732 | 1.307 | 1.307 | 1.517 | 1.307 | | BRII-835 | 0.261 | 0.261 | 0.243 | 0.261 | | BRII-877 | 14.666 | 14.666 | 3.123 | 1.825 | | BRII-753 | 1.400 | 1.400 | 1.825 | 0.053 | | Other R&D Projects | 1.517 | 1.517 | 4.948 | 3.380 | | Working Capital and Other General Corporate Purposes | 8.373 | 8.373 | 0.296 | 0.261 | | **Total** | **26.138** | **26.138** | **9.941** | **1.760** | [Utilization of Group 2 Allocated Funds](index=3&type=section&id=2.2.2%20%E7%AC%AC%E4%BA%8C%E7%BB%84%E5%88%86%E9%85%8D%E7%9A%84%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) The **HKD 15.315 million** net proceeds from the global offering allocated to Group 2 were fully utilized as of December 31, 2024, primarily for R&D projects like BRII-297, BRII-636, and working capital, with no unutilized balance Utilization of Group 2 Allocated Funds as of December 31, 2024 (Million HKD) | Project/Purpose | Original Proposed Use (Million HKD) | Revised Proposed Use (Million HKD) | Funds Utilized (Million HKD) | Unutilized Net Proceeds as of 2024-12-31 (Million HKD) | | :--------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :----------------------------------------------------------------- | | BRII-297 | 0.675 | 0.675 | 0.675 | 0 | | BRII-636 | 0.590 | 0.590 | 0.590 | 0 | | BRII-672 | 0.085 | 0.085 | 0.085 | 0 | | BRII-296 | 2.746 | 2.746 | 2.746 | 0 | | BRII-693 | 3.920 | 3.920 | 3.920 | 0 | | Other R&D Projects | 2.614 | 2.614 | 2.614 | 0 | | Working Capital and Other General Corporate Purposes | 26.138 | 26.138 | 26.138 | 0 | | **Total** | **15.315** | **15.315** | **15.315** | **0** | [Other Information and Board Statement](index=4&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF%E4%B8%8E%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%A3%B0%E6%98%8E) The additional information disclosed in this supplemental announcement does not affect other content in the 2024 annual report, with all other information remaining unchanged, and includes details on the company's board members - The additional information in this supplemental announcement does not affect other information in the 2024 annual report[5](index=5&type=chunk) - Board members include Executive Directors Dr Zhi Hong and Dr Li Ankang, along with several Independent Non-executive Directors[6](index=6&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) Pan-Asia Environmental Group reported a decline in revenue, gross profit, and profit attributable to owners for the six months ended June 30, 2025 Financial Summary for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 113,340 | 115,410 | -2% | | Gross Profit | 15,316 | 17,855 | -14% | | Profit for the Period Attributable to Owners of the Company | 4,718 | 6,389 | -26% | | Earnings Per Share (RMB cents) | 0.48 | 0.66 | -27% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, showing declines in income and profit, with a slight increase in total equity [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) The Group's revenue and gross profit declined, with profit for the period decreasing by 33.1% due to the absence of certain gains and losses from the prior year Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 113,340 | 115,410 | -2% | | Cost of Sales | (98,024) | (97,555) | 0.5% | | Gross Profit | 15,316 | 17,855 | -14.2% | | Net Other Income | 1,264 | 3,040 | -58.4% | | Net Other Gains | 2,193 | 889 | 146.7% | | Impairment Loss on Cryptocurrencies | – | (6,988) | N/A | | Fair Value Gain on Financial Liabilities at Fair Value Through Profit or Loss | – | 7,609 | N/A | | Finance Costs | (160) | (845) | -81.1% | | Profit Before Tax | 8,931 | 11,954 | -25.3% | | Income Tax Expense | (4,213) | (4,896) | -14.0% | | Profit for the Period | 4,718 | 7,058 | -33.1% | | Profit for the Period Attributable to Owners of the Company | 4,718 | 6,389 | -26.2% | | Basic and Diluted Earnings Per Share (RMB cents) | 0.48 | 0.66 | -27.3% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group saw decreases in non-current assets and current liabilities, a slight increase in net current assets, and stable cash balances Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 2,409 | 6,129 | -60.6% | | Current Assets | 1,301,651 | 1,309,769 | -0.6% | | Current Liabilities | 132,617 | 149,999 | -11.6% | | Net Current Assets | 1,169,034 | 1,159,770 | 0.8% | | Total Assets Less Current Liabilities | 1,171,443 | 1,165,899 | 0.5% | | Non-current Liabilities | 332 | 1,017 | -67.3% | | Net Assets | 1,171,111 | 1,164,882 | 0.5% | | Total Equity | 1,171,111 | 1,164,882 | 0.5% | | Cash and Bank Balances | 1,264,950 | 1,256,898 | 0.6% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, significant accounting judgments, revenue, segment reporting, and other key financial statement items for the Group's operations [1. General Information](index=6&type=section&id=1.%20General%20Information) Pan-Asia Environmental Group Limited, incorporated in the Cayman Islands and listed on the Stock Exchange, focuses on environmental products, engineering, and investment holding - The company is incorporated in the Cayman Islands, with shares listed on the Stock Exchange[7](index=7&type=chunk) - The Group primarily engages in the sale of environmental protection products and equipment, environmental construction engineering services in China, and investment holding[8](index=8&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in RMB under HKAS 34 and Listing Rules, with consistent accounting policies and no significant impact from new standards [2(a) Statement of Compliance](index=6&type=section&id=2(a)%20Statement%20of%20Compliance) The condensed consolidated financial statements are prepared in RMB, adhering to HKAS 34 and the Stock Exchange Listing Rules' disclosure requirements - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules of the Stock Exchange[9](index=9&type=chunk) - The Group's functional currency is HKD, but the condensed consolidated financial statements are presented in RMB, as most transactions are denominated in RMB[9](index=9&type=chunk) [2(b) Significant Accounting Policies Information](index=6&type=section&id=2(b)%20Significant%20Accounting%20Policies%20Information) Accounting policies are consistent with 2024, and newly adopted or issued standards are not expected to significantly impact the Group's financial position or performance - Accounting policies are consistent with the 2024 annual consolidated financial statements, and revised standards effective January 1, 2025, have been adopted with no significant impact expected[10](index=10&type=chunk)[11](index=11&type=chunk) - New and revised standards issued but not yet effective (e.g., HKFRS 9, 18, 19) are not expected to have a significant impact on the Group's financial position and performance[12](index=12&type=chunk)[13](index=13&type=chunk) [3. Significant Accounting Judgments and Key Sources of Estimation Uncertainty](index=7&type=section&id=3.%20Significant%20Accounting%20Judgments%20and%20Key%20Sources%20of%20Estimation%20Uncertainty) This section outlines significant accounting judgments and estimation uncertainties, including impairment, warranty, income tax, and withholding tax, based on historical data and economic forecasts [3(a) Key Sources of Estimation Uncertainty](index=7&type=section&id=3(a)%20Key%20Sources%20of%20Estimation%20Uncertainty) Impairment estimates for trade receivables and contract assets involve judgment based on credit loss experience and economic forecasts, with no warranty provisions due to supplier coverage - Impairment estimates for trade receivables and contract assets are based on expected credit losses, requiring estimation and judgment, considering past experience and economic conditions[14](index=14&type=chunk)[15](index=15&type=chunk) - The Group has not made provisions for product warranties on environmental protection products and equipment due to supplier warranties and insignificant recent claims experience[16](index=16&type=chunk) [3(b) Significant Accounting Judgments Made in Applying the Group's Accounting Policies](index=8&type=section&id=3(b)%20Significant%20Accounting%20Judgments%20Made%20in%20Applying%20the%20Group's%20Accounting%20Policies) Significant accounting judgments include income tax provisions, assessing final tax determinations, and withholding tax on Chinese subsidiaries' distributable profits, where dividend distribution is deemed unlikely - Income tax provisions involve significant judgment regarding final tax determinations due to transaction and calculation complexities, leading to uncertainty[18](index=18&type=chunk) - The Group judges that the likelihood of its Chinese subsidiaries distributing dividends in the foreseeable future is extremely low, thus no provision for withholding tax on dividend distribution has been made[19](index=19&type=chunk) [4. Revenue and Segment Reporting](index=9&type=section&id=4.%20Revenue%20and%20Segment%20Reporting) This section details revenue sources and segment reporting, with revenue primarily from environmental products and equipment sales, and all segments located in China [4(a) Revenue](index=9&type=section&id=4(a)%20Revenue) Group revenue, excluding sales taxes, is entirely from goods sales, specifically water treatment and flue gas treatment products, with no environmental engineering service revenue Revenue Disaggregation from Contracts with Customers | Type of Goods or Services | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Water Treatment Products and Equipment | 84,270 | 84,920 | | Flue Gas Treatment Products and Equipment | 29,070 | 30,490 | | **Total** | **113,340** | **115,410** | | Timing of Revenue Recognition (at a point in time) | 113,340 | 115,410 | [4(b) Segment Reporting](index=9&type=section&id=4(b)%20Segment%20Reporting) The Group manages two China-based segments, environmental products and engineering, assessing performance via Adjusted EBITDA, with only the product segment generating revenue - The Group's operating and reportable segments are classified as (i) environmental protection products and equipment and (ii) environmental construction engineering services, all located in China[23](index=23&type=chunk) - Segment profit is assessed using the **Adjusted EBITDA** method, representing earnings before interest, tax, depreciation, and amortization, adjusted for items not allocated to individual segments[25](index=25&type=chunk) Reportable Segment Revenue and Profit (Adjusted EBITDA) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Environmental Protection Products and Equipment Segment Revenue | 113,340 | 115,410 | | Environmental Construction Engineering Services Segment Revenue | – | – | | **Total Reportable Segment Revenue** | **113,340** | **115,410** | | Environmental Protection Products and Equipment Segment Profit (Adjusted EBITDA) | 18,627 | 17,941 | | Environmental Construction Engineering Services Segment Profit (Adjusted EBITDA) | – | – | - Revenue from external customers is entirely derived from China[29](index=29&type=chunk)[30](index=30&type=chunk) [5. Net Other Income](index=12&type=section&id=5.%20Net%20Other%20Income) Net other income significantly decreased by 58.4% to RMB 1,264 thousand, mainly due to the absence of agency fees and distributed storage solution income Details of Net Other Income | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Bank Interest Income | 1,264 | 1,257 | 0.6% | | Agency Fee Income | – | 1,708 | -100% | | Net Income from Providing Distributed Disaster Recovery Storage Solutions | – | 75 | -100% | | **Total** | **1,264** | **3,040** | -58.4% | [6. Profit Before Tax](index=12&type=section&id=6.%20Profit%20Before%20Tax) Profit before tax decreased by 25.3% to RMB 8,931 thousand, influenced by significantly lower finance costs and the absence of prior-year cryptocurrency and financial liability fair value items Major Items Affecting Profit Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 160 | 845 | -81.1% | | Cost of Inventories | 98,024 | 97,555 | 0.5% | | Depreciation | 1,734 | 369 | 370% | | Net Impairment Loss on Trade Receivables | (1,662) | (976) | 70.3% | | Net Impairment Loss on Contract Assets | (955) | 85 | N/A | | Impairment Loss on Cryptocurrencies | – | 6,988 | N/A | | Fair Value Gain on Financial Liabilities at Fair Value Through Profit or Loss | – | (7,609) | N/A | [7. Income Tax Expense](index=13&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense decreased by 14% to RMB 4,213 thousand, with China corporate income tax at 25% and a 10% withholding tax on Chinese subsidiaries' profit distributions Details of Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Current Period Provision | 3,205 | 4,674 | -31.5% | | Deferred Tax | 1,008 | 222 | 354.1% | | **Total** | **4,213** | **4,896** | -14.0% | - China corporate income tax is calculated at a **25%** rate, and Chinese subsidiaries distributing profits to overseas shareholders are subject to a **10%** withholding tax[33](index=33&type=chunk)[34](index=34&type=chunk) [8. Earnings Per Share](index=13&type=section&id=8.%20Earnings%20Per%20Share) Basic and diluted earnings per share decreased by 27.3% to RMB 0.48 cents, with no difference between basic and diluted due to the absence of dilutive shares Earnings Per Share Calculation Data | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 4,718 | 6,389 | | Weighted Average Number of Ordinary Shares | 990,000,000 | 972,479,784 | - Diluted earnings per share are the same as basic earnings per share, as there were no potentially dilutive ordinary shares outstanding in both the current and prior periods[37](index=37&type=chunk) [9. Dividends](index=14&type=section&id=9.%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, to conserve capital for business development - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil), to reserve capital for the Group's business development[38](index=38&type=chunk) [10. Right-of-Use Assets and Property, Plant and Equipment](index=14&type=section&id=10.%20Right-of-Use%20Assets%20and%20Property%2C%20Plant%20and%20Equipment) The Group had no new right-of-use assets or property, plant and equipment acquisitions in the current period, unlike the prior year - For the six months ended June 30, 2025, the Group had no additions to right-of-use assets or acquisitions of property, plant and equipment[39](index=39&type=chunk) - For the six months ended June 30, 2024, the Group added approximately **RMB 977 thousand** in right-of-use assets and approximately **RMB 201 thousand** in property, plant and equipment[39](index=39&type=chunk) [11. Trade and Other Receivables](index=14&type=section&id=11.%20Trade%20and%20Other%20Receivables) Total trade and other receivables decreased by 30.5% to RMB 36,701 thousand, driven by lower net trade receivables, while contract assets slightly increased Details of Trade and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Trade Receivables | 9,532 | 26,186 | -63.6% | | Net Contract Assets | 26,989 | 26,367 | 2.4% | | Prepayments and Deposits | 169 | 307 | -45.0% | | Other Recoverable Taxes | 11 | 11 | 0% | | **Total** | **36,701** | **52,871** | -30.5% | - The Group generally grants trade customers credit terms of **0 to 180 days** and monitors overdue amounts[40](index=40&type=chunk)[41](index=41&type=chunk) [12. Trade and Other Payables](index=15&type=section&id=12.%20Trade%20and%20Other%20Payables) Total trade and other payables decreased by 7.2% to RMB 130,582 thousand, with a notable decrease in trade payables and an increase in amounts due to the controlling party Details of Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 40,243 | 56,013 | -28.1% | | Accruals and Other Payables | 13,829 | 12,250 | 12.9% | | Amounts Due to the Company's Direct and Ultimate Controlling Party | 76,510 | 72,454 | 5.6% | | **Total** | **130,582** | **140,717** | -7.2% | - Amounts due to the company's direct and ultimate controlling party, Praise Fortune Limited, are unsecured, interest-free, and repayable on demand[42](index=42&type=chunk) [13. Share Capital](index=16&type=section&id=13.%20Share%20Capital) As of June 30, 2025, issued share capital was 990,000 thousand shares, including new shares issued in 2024 to capitalize RMB 11,806 thousand in debt Changes in Share Capital | Item | Number of Shares (thousand shares) | Amount (RMB thousands) | | :--- | :--- | :--- | | As at December 31, 2023 and January 1, 2024 | 928,679 | 86,149 | | Issue of New Shares (February 22, 2024) | 61,321 | 5,569 | | As at December 31, 2024 and June 30, 2025 | 990,000 | 91,718 | - On February 22, 2024, the company settled **RMB 11,806 thousand** in debt by issuing **61,320,755** ordinary shares[44](index=44&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews China's environmental industry trends, the Group's financial performance decline due to product sales, and future strategies focusing on AI integration and national alignment for growth [Industry and Business Review](index=17&type=section&id=Industry%20and%20Business%20Review) China's environmental industry is integrating green and digital technologies with AI, making smart solutions mandatory; the Group has four projects totaling RMB 82.3 million expected by year-end - China's environmental protection industry is guided by "high-quality development" and "new productive forces" strategies, deeply integrating green and digital technologies[45](index=45&type=chunk) - The deep integration of Artificial Intelligence (AI) technology with environmental engineering has become a core competency, with smart water platforms and AI energy-saving control systems being mandatory requirements for project bidding[45](index=45&type=chunk) - As of June 30, 2025, the Group has four projects on hand with a total engineering value of **RMB 82.3 million** yet to be completed, expected by the end of 2025[46](index=46&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) Total revenue decreased by 1.8% to RMB 113.3 million, gross profit fell by 14.2% to RMB 15.3 million, and profit attributable to owners decreased by 26.2% to RMB 4.7 million Summary of Financial Review for H1 2025 | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 113.3 | 115.4 | -1.8% | | Gross Profit | 15.3 | 17.855 | -14.2% | | Gross Profit Margin | 13.5% | 15.5% | -2.0pp | | Profit Attributable to Owners of the Company | 4.7 | 6.4 | -26.2% | | Basic and Diluted Earnings Per Share (RMB cents) | 0.48 | 0.66 | -27.3% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, to reserve capital for the Group's business development[48](index=48&type=chunk) [Outlook](index=18&type=section&id=Outlook) The Group anticipates new opportunities from AI, digitalization, and green transformation, focusing on AI-empowered core business, diversified investments, and national alignment for sustained growth - The global economy is evolving driven by AI, digitalization, and green transformation, bringing opportunities for industrial upgrading and business model innovation[49](index=49&type=chunk) - The Group will focus on deepening its core business (leveraging AI empowerment), expanding diversified layouts (investing in the "AI+" industry chain), strengthening synergistic cooperation, and aligning with national plans to achieve sustained business growth and value enhancement[50](index=50&type=chunk)[51](index=51&type=chunk) [Exposure to Exchange Rate Fluctuations](index=19&type=section&id=Exposure%20to%20Exchange%20Rate%20Fluctuations) The Group's transactions, liabilities, and bank deposits are primarily in RMB and HKD, with no foreign currency hedging instruments held as of June 30, 2025 - The vast majority of the Group's operating transactions and liabilities are denominated in RMB and HKD, with bank deposits also primarily in RMB and HKD[53](index=53&type=chunk) - As of June 30, 2025, the Group held no foreign currency bank liabilities, foreign exchange contracts, interest or currency swaps, or other financial derivative instruments for hedging purposes[53](index=53&type=chunk) [Capital Commitments and Contingent Liabilities](index=19&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had no capital expenditure commitments and believes its product warranty liabilities are not significant due to supplier coverage - As of June 30, 2025, the Group had no capital expenditure commitments for the acquisition of property, plant and equipment[54](index=54&type=chunk) - The Group provides product warranty services to customers (six months to two years) and benefits from supplier warranty services, with Directors believing period-end warranty liabilities are not significant[54](index=54&type=chunk) [Pledge of Assets](index=19&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledge of assets, consistent with the prior year-end - As of June 30, 2025, the Group had no pledge of assets[55](index=55&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers employee relations, listed securities transactions, audit committee review, corporate governance practices, and interim results publication, noting a deviation in board meeting frequency [Relationship with Employees and Key Stakeholders](index=20&type=section&id=Relationship%20with%20Employees%20and%20Key%20Stakeholders) The Group employed 90 employees, with total staff costs of RMB 6.5 million, and maintains good employee relations through competitive remuneration and training - As of June 30, 2025, the Group employed **90 employees**[56](index=56&type=chunk) Total Staff Costs | Period | Total Staff Costs (RMB thousands) | | :--- | :--- | | For the six months ended June 30, 2025 | 6,500 | | For the six months ended June 30, 2024 | 9,900 | [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&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 listed securities during the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[57](index=57&type=chunk) [Audit Committee Review](index=20&type=section&id=Audit%20Committee%20Review) The Audit Committee, composed of three independent non-executive directors, reviewed the Group's interim results and is responsible for financial reporting and internal controls - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim results and report for the six months ended June 30, 2025[58](index=58&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) The Board is committed to high corporate governance, with a deviation from the code regarding board meeting frequency, but directors confirm compliance with securities dealing rules [At Least Four Regular Board Meetings Annually](index=20&type=section&id=At%20Least%20Four%20Regular%20Board%20Meetings%20Annually) The company deviates from Code Provision C.5.1 by holding only two board meetings annually, citing no quarterly results publication as the reason - The company has not complied with Corporate Governance Code Provision C.5.1, holding only two board meetings annually instead of at least four, as it does not publish quarterly results[59](index=59&type=chunk)[60](index=60&type=chunk) [Directors' Securities Transactions](index=21&type=section&id=Directors'%20Securities%20Transactions) The company adopted a strict securities dealing code, which directors confirmed compliance with, and no employees with inside information breached it - The company has adopted a strict code for securities dealing, which Directors confirmed compliance with during the period[61](index=61&type=chunk) - The code also applies to all employees who may possess inside information, and to the company's knowledge, no employees have breached it[61](index=61&type=chunk) [Publication of Interim Results and Interim Report](index=21&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement is published on HKEX and company websites, with the full interim report to be despatched to shareholders and published online - The interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company, and the interim report will be despatched to shareholders and published on the aforementioned websites in due course[62](index=62&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) This section provides a high-level overview of the company's financial performance and key operating metrics for the six months ended June 30, 2025 [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, revenue decreased by 28% to RMB 247 million, while net profit significantly increased by 90% to RMB 72.67 million, driven by cost control and operational efficiency Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 247,180 | 342,622 | (28) | | Gross Profit | 154,148 | 211,787 | (27) | | Net Profit | 72,665 | 38,203 | 90 | | Profit attributable to owners of the Company | 70,257 | 45,059 | 56 | [Operating Data Overview](index=2&type=section&id=Operating%20Data%20Overview) Average MAU and MPU significantly decreased by 47% and 44% respectively, while ARPPU increased by 5% to RMB 290, and cumulative registered players grew by 8% to 100.45 million Operating Data Summary for the Six Months Ended June 30, 2025 | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Average MAU (thousands) | 1,144 | 2,179 | (47) | | Average MPU (thousands) | 141 | 253 | (44) | | ARPPU (RMB) | 290 | 275 | 5 | | Cumulative Registered Players (thousands) | 100,452 | 93,389 | 8 | [Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) This section details the company's business strategy, operational highlights, game portfolio performance, player community engagement, and future outlook [Business Overview](index=3&type=section&id=Business%20Overview) As a renowned Chinese mobile game developer and publisher, Qingci Games adheres to its "premium, global, and long-term" strategy, achieving stable development and enhanced profitability despite a revenue decline - The company firmly adheres to its core strategy of "premium, global, and long-term" development, maintaining stable and healthy business growth[7](index=7&type=chunk) - The 5th-anniversary celebration of "The Marvelous Snail" successfully attracted returning players, significantly increasing **ARPPU from approximately RMB 200 to nearly RMB 300**, a growth of about **50%**[8](index=8&type=chunk) - Actively preparing for the overseas release of "The Marvelous Snail" in South Korea and "Cardcaptor Sakura: Memory Key" in Vietnam and Japan, steadily advancing global expansion[8](index=8&type=chunk) - Strategic self-developed masterpiece "Project E" is progressing smoothly, having initiated "Planck Testing" and integrating innovative gameplay such as map exploration, inventory management, and resource collection[9](index=9&type=chunk) - During the reporting period, **revenue was approximately RMB 247 million**, a **27.86% year-over-year decrease**; **profit attributable to owners of the Company was approximately RMB 70.26 million**, a **55.92% year-over-year increase**[9](index=9&type=chunk) - **Cumulative registered players reached 100.45 million**, a **7.56% year-over-year increase**; **average monthly active users (MAU) were approximately 1.144 million**, a **47.50% year-over-year decrease**; **average monthly paying users (MPU) were approximately 140.6 thousand**, a **44.40% year-over-year decrease**; **ARPPU reached RMB 289.79**, a **5.26% year-over-year increase**[10](index=10&type=chunk) [Overview of Key Games](index=5&type=section&id=Overview%20of%20Key%20Games) The company's portfolio includes various mobile and mini-program games, with flagship "The Marvelous Snail" exceeding RMB 3.786 billion in cumulative gross billings and other titles contributing to revenue or market expansion - "The Marvelous Snail" cumulative gross billings exceeded **RMB 3.786 billion**, with **29.4039 million cumulative registered players**, and **revenue of approximately RMB 147 million** during the reporting period[12](index=12&type=chunk) - The Korean version of "The Marvelous Snail" is in its final preparation stages, set to further expand the global footprint[12](index=12&type=chunk) - "Gumballs & Dungeons" launched a free-to-play Steam version, achieving **sixth place on the global popular free games chart** and "overwhelmingly positive" reviews[15](index=15&type=chunk) Revenue from Key Games During the Reporting Period | Game Title | Revenue (RMB millions) | | :--- | :--- | | The Marvelous Snail | 147 | | Lantern and Dungeon | 6.87 | | Sword and Fairy: Together Forever | 21.52 | | Cardcaptor Sakura: Memory Key | 3.76 | | Fat Goose Fitness | 21.71 | | Light of the Lost | 6.76 | | Ares Virus 2 | 29.85 | | Gumballs & Dungeons | 3.91 | | Other Key Games | 3.30 | [Player Community](index=6&type=section&id=Player%20Community) The company has cultivated an active "Qingci Iron Fan Community" across multiple platforms, reaching 16.2036 million fans, whose feedback aids game development and attracts more active players - As of June 30, 2025, the games have accumulated **16.2036 million Qingci "Iron Fans"**, a **year-over-year increase of 8.22%**[17](index=17&type=chunk) - Player community feedback helps the company develop and improve games, fostering a virtuous cycle[17](index=17&type=chunk) [Future Outlook](index=7&type=section&id=Future%20Outlook) The company plans to deepen long-term operations, maximize existing game value, explore new product introductions for multi-platform publishing experience, and focus on core self-developed projects to build long-term competitive barriers Game Reserve Overview | Name | Mobile Game Type | Source | Development Stage | Expected Launch Time | | :--- | :--- | :--- | :--- | :--- | | Tingus Goose | Casual Game | Licensed | Game production, testing and optimization | 2025 | | Project W | Card RPG | Licensed | Game production, testing and optimization | 2026 | | Project E | SLG | Self-developed | Game production, testing and optimization | 2026 | | Project HA | Card RPG | Licensed | Game production, testing and optimization | 2027 | | Project F | Survival Social | Licensed | Game production, testing and optimization | 2027 | - Applying the successful experience of "The Marvelous Snail" 5th-anniversary celebration to other game operations to enhance the vitality of evergreen games[19](index=19&type=chunk) - The casual game "Tingus Goose" is planned for release on Steam, representing another venture into the PC casual market[22](index=22&type=chunk) - The self-developed flagship "Project E" is a strategic core project, having initiated "Planck Testing" with the goal of creating a globally competitive masterpiece[22](index=22&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) This section provides a detailed analysis of the company's revenue, cost of revenue, gross profit, operating expenses, and other income/losses for the reporting period [Revenue](index=8&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue decreased by 27.9% to RMB 247 million, with game operation revenue accounting for 96.6%, and significant declines in game licensing, information services, and other services revenue Revenue Breakdown by Business Category | Business Category | 2025 (RMB thousands) | Percentage (%) | 2024 (RMB thousands) | Percentage (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Game Operation Revenue | 238,641 | 96.6 | 323,172 | 94.4 | (26.2) | | - Self-developed | 147,441 | 59.7 | 196,738 | 57.5 | (25.1) | | - Licensed | 91,200 | 36.9 | 126,434 | 36.9 | (27.9) | | Game Licensing Revenue | 2,744 | 1.1 | 6,323 | 1.8 | (56.6) | | Information Service Revenue | 3,076 | 1.2 | 9,290 | 2.7 | (66.9) | | Other Services and Sales | 2,719 | 1.1 | 3,837 | 1.1 | (29.1) | | **Total Revenue** | **247,180** | **100.0** | **342,622** | **100.0** | **(27.9)** | - The decrease in game operation revenue was primarily due to some games being in their mature phase, leading to a decline in monetization, though new versions and content optimization mitigated the decline[26](index=26&type=chunk) - Game licensing revenue decreased by **56.6%**, mainly because "The Marvelous Snail" in Hong Kong, Macau, and Taiwan transitioned from external licensing to self-operation by the Group[27](index=27&type=chunk) - Information service revenue decreased by **66.9%**, primarily due to a decline in in-game ad views or clicks[28](index=28&type=chunk) [Cost of Revenue](index=10&type=section&id=Cost%20of%20Revenue) Cost of revenue decreased by 28.9% to RMB 93.0 million, mainly due to reduced game operation revenue, with significant declines in distribution and payment channel commissions, and third-party developer commissions Cost of Revenue Breakdown by Nature | Cost of Revenue Category | 2025 (RMB thousands) | Percentage (%) | 2024 (RMB thousands) | Percentage (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Distribution and Payment Channel Commissions | 55,782 | 60.0 | 69,168 | 52.9 | (19.4) | | Third-party Game Developer and IP Holder Commissions | 16,060 | 17.3 | 38,173 | 29.2 | (57.9) | | Bandwidth and Server Hosting Fees | 8,942 | 9.6 | 8,953 | 6.8 | (0.1) | | Employee Benefit Expenses | 5,455 | 5.9 | 6,051 | 4.6 | (9.8) | | Other | 6,793 | 7.2 | 8,490 | 6.5 | (20.0) | | **Total** | **93,032** | **100.0** | **130,835** | **100.0** | **(28.9)** | - Commissions for third-party game developers and IP holders decreased by **57.9%**, mainly due to reduced revenue from licensed games such as "Sword and Fairy: Together Forever", "Cardcaptor Sakura: Memory Key", and "Lantern and Dungeon"[34](index=34&type=chunk) - Employee benefit expenses decreased by **9.8%**, primarily due to a reduction in customer service center employees[35](index=35&type=chunk) [Gross Profit and Gross Margin](index=12&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 27.2% to RMB 154.1 million, primarily due to the natural decline in gross billings from core games in their mature phase, while gross margin remained stable at 62.4% - **Gross profit decreased by 27.2% to RMB 154.1 million**, primarily due to the natural decline in gross billings from core games[36](index=36&type=chunk) - **Gross margin was 62.4%**, largely consistent with **61.8%** in the same period last year[36](index=36&type=chunk) [Selling and Marketing Expenses](index=12&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses significantly decreased by 58.3% to RMB 55.0 million, attributed to efficient operational management and cost control, partially offset by increased marketing for new games and "The Marvelous Snail" in Europe and America - **Selling and marketing expenses decreased by 58.3% to RMB 55.0 million**, primarily due to significant reductions in selling and marketing expenses for "Fat Goose Fitness", "Sword and Fairy: Together Forever", and "Cardcaptor Sakura: Memory Key"[38](index=38&type=chunk) [Research and Development Expenses](index=13&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased by 10.8% to RMB 42.0 million, mainly due to enhanced R&D efficiency, focus on core projects, and streamlining of R&D personnel - **R&D expenses decreased by 10.8% to RMB 42.0 million**, primarily due to improved R&D efficiency and streamlining of R&D personnel[39](index=39&type=chunk) [General and Administrative Expenses](index=13&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses were approximately RMB 27.4 million, remaining largely stable compared to the same period last year - **General and administrative expenses were approximately RMB 27.4 million**, largely consistent with the same period last year[40](index=40&type=chunk) [Fair Value Changes of Investments Measured at Fair Value Through Profit or Loss](index=13&type=section&id=Fair%20Value%20Changes%20of%20Investments%20Measured%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Fair value gains from investments measured at fair value through profit or loss increased by 4.8% to RMB 44.1 million, primarily due to increased gains from investment funds and wealth management products - **Fair value gains increased by 4.8% to RMB 44.1 million**, primarily due to increased gains from investment funds and wealth management products[42](index=42&type=chunk) [Other Income](index=14&type=section&id=Other%20Income) Other income significantly increased by 225.9% to RMB 2.5 million, mainly due to higher government subsidies and dividend distributions from long-term investments measured at fair value through profit or loss - **Other income increased by 225.9% to RMB 2.5 million**, primarily due to increased government subsidies and dividend distributions from long-term investments[43](index=43&type=chunk) [Other Gains / (Losses) – Net](index=14&type=section&id=Other%20Gains%20%2F%20%28Losses%29%20%E2%80%93%20Net) Other gains/(losses) – net turned from a loss of RMB 11.6 million to a gain of RMB 4.4 million, mainly due to significant exchange gains from the appreciation of the Japanese Yen against the US Dollar and effective foreign exchange management - **Other gains/(losses) – net turned from a loss of RMB 11.6 million to a gain of RMB 4.4 million**, primarily benefiting from the appreciation of the Japanese Yen and effective foreign exchange management[44](index=44&type=chunk) [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) Income tax expense significantly increased by 1,555.6% to RMB 12.5 million, mainly due to the utilization and reversal of previously recognized deferred tax assets during the reporting period - **Income tax expense increased by 1,555.6% to RMB 12.5 million**, primarily due to the utilization and reversal of certain deferred tax assets previously recognized[45](index=45&type=chunk) [Profit for the Period](index=15&type=section&id=Profit%20for%20the%20Period) Profit for the period increased by 90.2% to RMB 72.7 million, driven by efficient management, cost control (especially reduced marketing expenses), and positive foreign exchange fluctuations, partially offset by lower gross profit from declining game gross billings - **Profit for the period increased by 90.2% to RMB 72.7 million**, primarily benefiting from efficient management, cost control, and exchange gains[46](index=46&type=chunk) [Liquidity, Capital Resources and Gearing Ratio](index=15&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Gearing%20Ratio) This section reviews the company's cash position, liquidity ratios, and financial leverage as of June 30, 2025 - **Total cash and cash equivalents decreased by 12.6% to RMB 393.5 million**[47](index=47&type=chunk) - **Current ratio was 1,160.4%**, and **gearing ratio was 7.7%**[47](index=47&type=chunk)[48](index=48&type=chunk) [Significant Acquisitions and Disposals and Material Investments](index=16&type=section&id=Significant%20Acquisitions%20and%20Disposals%20and%20Material%20Investments) This section reports on changes in short-term investments and confirms the absence of other significant acquisitions or disposals during the period - **Short-term investments increased by 11.8% to RMB 1,280.9 million**, primarily due to increased fair value gains and higher allocation to investment funds and wealth management products[49](index=49&type=chunk) [Future Plans for Material Investments and Capital Assets](index=16&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) This section states the company's current position regarding future plans for material investments and capital assets - As of June 30, 2025, the Group had no future plans for material investments and capital assets[50](index=50&type=chunk) [Pledges of Assets](index=16&type=section&id=Pledges%20of%20Assets) This section confirms that the company had no pledged assets as of the reporting date - As of June 30, 2025, the Group had no pledged assets[51](index=51&type=chunk) [Capital Expenditures](index=16&type=section&id=Capital%20Expenditures) This section outlines the capital expenditures incurred during the period and future funding plans - **Total capital expenditures were approximately RMB 1.7 million**, primarily for purchasing office equipment, an increase from **RMB 1.1 million** in the same period last year[52](index=52&type=chunk) [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) This section confirms the absence of significant contingent liabilities and describes the company's foreign exchange risk management - As of June 30, 2025, the Group had no significant contingent liabilities[53](index=53&type=chunk) - The company manages foreign exchange risk through foreign currency forward contracts, primarily involving USD and JPY[54](index=54&type=chunk) [Employees and Remuneration Policy](index=17&type=section&id=Employees%20and%20Remuneration%20Policy) This section details the company's employee count, recruitment strategies, training programs, and compensation structure - As of June 30, 2025, the Group had **536 full-time employees**, with the vast majority located in mainland China[55](index=55&type=chunk) - The company provides training to enhance employee skills and encourages employees to form new core project teams to develop new games[55](index=55&type=chunk) [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the condensed consolidated interim statement of profit or loss and other comprehensive income for the six months ended June 30, 2025 [Profit or Loss Statement Overview](index=18&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended June 30, 2025, the company reported revenue of RMB 247,180 thousand, gross profit of RMB 154,148 thousand, profit for the period of RMB 72,665 thousand, and basic earnings per share of RMB 0.10 Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (Summary) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 247,180 | 342,622 | | Cost of Sales | (93,032) | (130,835) | | Gross Profit | 154,148 | 211,787 | | Selling and Marketing Expenses | (55,041) | (131,912) | | Research and Development Expenses | (42,016) | (47,128) | | General and Administrative Expenses | (27,426) | (27,440) | | Fair Value Changes of Investments Measured at Fair Value Through Profit or Loss | 44,066 | 42,050 | | Other Income | 2,467 | 757 | | Other Gains / (Losses) – Net | 4,352 | (11,569) | | Operating Profit | 80,515 | 36,270 | | Profit Before Income Tax | 85,148 | 38,957 | | Income Tax Expense | (12,483) | (754) | | Profit for the Period | 72,665 | 38,203 | | Profit attributable to owners of the Company | 70,257 | 45,059 | | Basic Earnings Per Share (RMB) | 0.10 | 0.07 | [Condensed Consolidated Interim Statement of Financial Position](index=20&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) This section presents the condensed consolidated interim statement of financial position as of June 30, 2025 [Statement of Financial Position Overview](index=20&type=section&id=Statement%20of%20Financial%20Position%20Overview) As of June 30, 2025, total assets were RMB 2,029,573 thousand, with significant increases in short-term investments measured at fair value through profit or loss and a decrease in cash and cash equivalents Condensed Consolidated Interim Statement of Financial Position (Summary) | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 280,659 | 294,191 | | Current Assets | 1,748,914 | 1,686,862 | | - Trade Receivables | 36,359 | 39,198 | | - Short-term Investments Measured at Fair Value Through Profit or Loss | 1,280,943 | 1,146,208 | | - Cash and Cash Equivalents | 393,458 | 449,975 | | **Total Assets** | **2,029,573** | **1,981,053** | | **Equity** | | | | Equity attributable to owners of the Company | 1,880,796 | 1,815,575 | | **Total Equity** | **1,873,158** | **1,806,821** | | **Liabilities** | | | | Non-current Liabilities | 5,702 | 8,715 | | Current Liabilities | 150,713 | 165,517 | | **Total Liabilities** | **156,415** | **174,232** | | **Total Equity and Liabilities** | **2,029,573** | **1,981,053** | [Notes to the Interim Financial Information](index=22&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) This section provides detailed notes explaining the basis of preparation, significant accounting policies, and specific financial line items in the interim financial statements [1. General Information](index=22&type=section&id=1.%20General%20Information) Qingci Games Co., Ltd. was incorporated in the Cayman Islands on March 12, 2021, primarily engaged in mobile game development and operation in China and other regions, with shares listed on the HKEX Main Board on December 16, 2021 - The Company was incorporated on March 12, 2021, under the laws of the Cayman Islands, primarily engaged in mobile game development and operation in China and other regions[60](index=60&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 16, 2021[61](index=61&type=chunk) [2. Basis of Preparation](index=22&type=section&id=2.%20Basis%20of%20Preparation) The interim financial information is prepared in accordance with HKAS 34 and Listing Rules disclosure requirements, using the same accounting policies as the 2024 annual financial statements, and presented in RMB - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules[62](index=62&type=chunk) - The interim financial information has been prepared in accordance with the same accounting policies adopted in the 2024 annual financial statements and is presented in RMB[62](index=62&type=chunk) [3. Significant Accounting Policies](index=22&type=section&id=3.%20Significant%20Accounting%20Policies) The revised HKAS 21 "Lack of Exchangeability" was adopted but had no impact, and the report lists new and revised standards issued but not yet effective - The Group first adopted HKAS 21 (Revised) "Lack of Exchangeability", which had no impact on the condensed consolidated interim financial information[63](index=63&type=chunk)[65](index=65&type=chunk) New and Revised Standards Issued But Not Yet Effective | Standard Name | Content | Effective Date | | :--- | :--- | :--- | | HKAS 28 and HKFRS 10 (Amendments) | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | To be determined | | HKFRS 9 and HKFRS 7 (Amendments) | Classification and Measurement of Financial Instruments | On or after January 1, 2026 | | HKFRS 18 | Presentation and Disclosure in Financial Statements | On or after January 1, 2027 | | Annual Improvements to HKFRS Standards – Volume 11 | HKFRS 1, 7, 9, 10 and HKAS 7 (Amendments) | On or after January 1, 2026 | [4. Segment Information and Revenue](index=23&type=section&id=4.%20Segment%20Information%20and%20Revenue) The company's directors consider the business to be operated and managed as a single segment, with revenue primarily from game operations, contributed by mainland China and other regions - The directors of the Company consider the Group's business to be operated and managed as a single segment, and therefore no segment information is presented[68](index=68&type=chunk) Game Operation Revenue Breakdown by Geographical Region | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 146,132 | 199,907 | | Other Regions | 101,048 | 142,715 | | **Total** | **247,180** | **342,622** | - For the six months ended June 30, 2025 and 2024, no individual customer's revenue exceeded **10%** of the Group's total revenue[72](index=72&type=chunk) [5. Expenses by Nature](index=25&type=section&id=5.%20Expenses%20by%20Nature) Total expenses for the period were RMB 217,550 thousand, a significant decrease from the prior year, with notable reductions in marketing and promotion, distribution channel commissions, and game developer commissions Expenses Breakdown by Nature | Expense Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Marketing and Promotion Expenses | 34,913 | 107,893 | | Employee Benefit Expenses | 77,646 | 82,977 | | Commissions Charged by Distribution Channels | 55,064 | 68,157 | | Commissions Charged by Game Developers and IP Holders | 16,060 | 38,173 | | Bandwidth and Server Hosting Fees | 8,942 | 8,953 | | Outsourcing Technical Services | 2,932 | 6,501 | | Office Expenses | 4,408 | 5,364 | | Depreciation of Right-of-use Assets | 4,549 | 5,253 | | Professional Service Fees | 3,069 | 4,694 | | Depreciation of Property, Plant and Equipment | 2,689 | 2,578 | | Amortization of Intangible Assets | 331 | – | | Auditor's Remuneration – Audit Services | 1,540 | 2,000 | | Auditor's Remuneration – Non-audit Services | 280 | 102 | | Commissions Charged by Payment Channels | 718 | 1,011 | | Impairment of Non-financial Assets | 2,529 | 1,000 | | Surcharges and Taxes | 165 | 639 | | Rental Expenses and Utilities | 758 | 612 | | Net Impairment Loss on Financial Assets | 35 | 275 | | Other | 922 | 1,408 | | **Total** | **217,550** | **337,590** | [6. Other Income](index=26&type=section&id=6.%20Other%20Income) Other income primarily comprises government grants and dividend distributions from long-term investments measured at fair value through profit or loss, totaling RMB 1,801 thousand and RMB 637 thousand respectively for the period Other Income Breakdown | Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants | 1,801 | 714 | | Dividend Distributions from Long-term Investments Measured at Fair Value Through Profit or Loss | 637 | 43 | | Other | 29 | – | | **Total** | **2,467** | **757** | [7. Other Gains / (Losses) – Net](index=26&type=section&id=7.%20Other%20Gains%20%2F%20%28Losses%29%20%E2%80%93%20Net) Other gains/(losses) – net primarily consist of net foreign exchange gains/(losses) and donations to charities, with net foreign exchange gains of RMB 4,100 thousand contributing to a total gain of RMB 4,352 thousand for the period Other Gains / (Losses) – Net Breakdown | Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Foreign Exchange Gains / (Losses) | 4,100 | (11,448) | | Donations to Charitable Organizations | (11) | (223) | | Other | 263 | 102 | | **Total** | **4,352** | **(11,569)** | [8. Income Tax Expense](index=26&type=section&id=8.%20Income%20Tax%20Expense) Income tax expense was RMB 12,483 thousand, a significant increase from the prior year, with details on corporate income tax rates and the absence of deferred tax liabilities for withholding tax on dividends - The corporate income tax rate in mainland China is generally **25%**, with some high-tech enterprises enjoying a preferential income tax rate of **15%**[81](index=81&type=chunk) - The Group does not intend to declare dividends to its directly foreign-held entities in the foreseeable future, thus no deferred tax liability for withholding tax has arisen[82](index=82&type=chunk) Income Tax Expense Breakdown | Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax – Provision for the Period | 8,539 | 9,040 | | Current Income Tax – Under/(Over) provision in Prior Years | 915 | (88) | | Deferred Income Tax | 3,029 | (8,198) | | **Total Income Tax Expense** | **12,483** | **754** | [9. Earnings Per Share](index=28&type=section&id=9.%20Earnings%20Per%20Share) Basic earnings per share for the six months ended June 30, 2025, increased to RMB 0.10 from RMB 0.07 in the prior year, with diluted earnings per share being the same due to no potential dilutive ordinary shares Basic Earnings Per Share | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to ordinary shareholders of the Company | 70,257 | 45,059 | | Weighted Average Number of Ordinary Shares Outstanding | 691,330,500 | 691,330,500 | | Basic Earnings Per Share (RMB) | 0.10 | 0.07 | - For the six months ended June 30, 2025 and 2024, the diluted earnings per share presented are the same as the basic earnings per share, as there were no potential dilutive ordinary shares[89](index=89&type=chunk) [10. Trade Receivables](index=29&type=section&id=10.%20Trade%20Receivables) As of June 30, 2025, total trade receivables were RMB 36,359 thousand, a decrease from December 31, 2024, with most receivables settled within 3 months Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 34,244 | 36,785 | | 3 to 6 months | 1,132 | 1,682 | | 6 months to 1 year | 345 | 762 | | 1 to 2 years | 708 | 4 | | **Total** | **36,429** | **39,233** | | Less: Impairment Provision | (70) | (35) | | **Net** | **36,359** | **39,198** | [11. Short-term Investments Measured at Fair Value Through Profit or Loss](index=30&type=section&id=11.%20Short-term%20Investments%20Measured%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the balance of short-term financial assets measured at fair value through profit or loss was RMB 1,280,943 thousand, an increase from the beginning of the period due to additions and fair value gains Changes in Short-term Investments Measured at Fair Value Through Profit or Loss | Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Financial Assets at Beginning of Period | 1,146,208 | 988,852 | | Additions | 171,358 | 387,762 | | Fair Value Changes | 44,320 | 42,148 | | Redemptions | (76,254) | (328,243) | | Exchange Differences on Translation | (4,689) | 5,832 | | **At End of Period** | **1,280,943** | **1,096,351** | [12. Share Capital and Share Premium](index=31&type=section&id=12.%20Share%20Capital%20and%20Share%20Premium) As of June 30, 2025, issued shares totaled 691,331 thousand, with a par value of USD 7 thousand and share premium of RMB 5,117,821 thousand, unchanged from December 31, 2024 Share Capital and Share Premium | Category | Number of Shares (thousands) | Par Value of Shares (USD thousands) | Equivalent Par Value of Shares (RMB thousands) | Share Premium (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Authorized as of December 31, 2024 and June 30, 2025 | 5,000,000 | 50 | – | Not applicable | | Issued as of December 31, 2024 and June 30, 2025 | 691,331 | 7 | 44 | 5,117,821 | [13. Trade Payables](index=31&type=section&id=13.%20Trade%20Payables) As of June 30, 2025, total trade payables were RMB 27,041 thousand, an increase from December 31, 2024, with most settled within 3 months Trade Payables Ageing Analysis | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 14,880 | 19,896 | | Over 3 months | 12,161 | 5,267 | | **Total** | **27,041** | **25,163** | [Other Information](index=32&type=section&id=Other%20Information) This section covers interim dividends, securities transactions, post-reporting period events, use of IPO proceeds, and corporate governance compliance [Interim Dividend](index=32&type=section&id=Interim%20Dividend) The Board of Directors has resolved not to recommend an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to recommend an interim dividend for the six months ended June 30, 2025[95](index=95&type=chunk) [Purchase, Sale or Redemption of the Company’s Listed Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%E2%80%99s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period, and no treasury shares were held - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[96](index=96&type=chunk) [Events After the Reporting Period](index=32&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after June 30, 2025, up to the date of this announcement - No significant events occurred after June 30, 2025, and up to the date of this announcement[97](index=97&type=chunk) [Use of Net Proceeds from Listing](index=32&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) Net proceeds from the global offering were approximately HKD 925.8 million, with HKD 901.2 million utilized by June 30, 2025, primarily for expanding the game portfolio, overseas market expansion, strengthening China mobile game market capabilities, and strategic investments Planned and Actual Use of Net Proceeds from Global Offering | Use of Proceeds | Planned Net Proceeds (HKD millions) | Amount Utilized as of June 30, 2025 (HKD millions) | Unutilized Amount (HKD millions) | Expected Timeline for Full Utilization | | :--- | :--- | :--- | :--- | :--- | | Expand game portfolio and invest in R&D | 324.0 | 318.9 | 5.1 | Before December 2025 | | Expand overseas market business | 231.4 | 231.4 | – | Not applicable | | Strengthen China mobile game market publishing and operating capabilities | 138.9 | 119.5 | 19.4 | Before December 2026 | | Strategic investments and acquisitions in the mobile game industry value chain | 138.9 | 138.9 | – | Not applicable | | Working capital and general corporate purposes | 92.6 | 92.6 | – | Not applicable | | **Total** | **925.8** | **901.2** | **24.6** | | [Compliance with Corporate Governance Code](index=34&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Board believes the company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period - The Board believes that the Company has complied with all code provisions set out in Part 2 of the Corporate Governance Code during the reporting period[100](index=100&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=34&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the Model Code during the reporting period[101](index=101&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited interim financial information for the six months ended June 30, 2025, and discussed accounting principles, internal controls, and financial reporting with management - The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025[102](index=102&type=chunk) [Scope of Work of BDO Limited](index=34&type=section&id=Scope%20of%20Work%20of%20BDO%20Limited) BDO Limited, the Group's auditor, reviewed the unaudited interim financial information and related notes for the six months ended June 30, 2025, contained in this announcement - BDO Limited, the Group's auditor, has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025, contained in this announcement[103](index=103&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the HKEX and company websites, and the interim report for the six months ended June 30, 2025, will be published in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.qcplay.com)[104](index=104&type=chunk) [Definitions](index=35&type=section&id=Definitions) This section provides definitions for key terms used throughout the report [Acknowledgements](index=38&type=section&id=Acknowledgements) The Board of Directors extends sincere gratitude to shareholders, business partners, and all employees - The Board of Directors extends its sincere gratitude to shareholders, business partners, and employees[108](index=108&type=chunk)

[Company Profile](index=2&type=section&id=Company%20Profile) This section provides an overview of Value Partners Group, an independent asset management company in Asia [Value Partners Group Overview](index=2&type=section&id=Value%20Partners%20Group%20Overview) Value Partners Group, established in 1993, is a leading independent asset manager in Asia offering diverse investment services and products - Value Partners Group, established in 1993, is an influential independent asset management company in Asia, offering diversified investment services and products[2](index=2&type=chunk) - Investment strategies cover equities, fixed income, alternative investments, multi-asset, and quantitative investments[2](index=2&type=chunk) - Became the first asset management company listed on the Main Board of the Hong Kong Stock Exchange (stock code: **806 HK**) in November 2007[3](index=3&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) This section details Value Partners Group's corporate governance structure, including its board of directors, committees, and essential contact and audit information [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section outlines the composition of Value Partners Group's Board of Directors and its various committees - Board members include Chairperson and Executive Director Ms. Linda Lim, Executive Directors Mr. Lee Kim and Ms. Wu Chuk Wah, Honorary Chairman and Non-executive Director Dato' Seri Cheah Cheng Hye, and three Independent Non-executive Directors[6](index=6&type=chunk) - Established Audit, Nomination, Remuneration, and Risk Management Committees, with their respective chairpersons and members listed[6](index=6&type=chunk) [Company Contact and Audit Information](index=3&type=section&id=Company%20Contact%20and%20Audit%20Information) This section provides Value Partners Group's essential contact, audit, and professional service information for transparency - Registered office is in the Cayman Islands, with the principal office located at The Center, Central, Hong Kong[6](index=6&type=chunk) - Auditor is PricewaterhouseCoopers, and legal counsel is Reed Smith Richards Butler[7](index=7&type=chunk) - Company stock code is HKEX: **806**, and website is www.valuepartners-group.com[7](index=7&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) This section presents a concise overview of Value Partners Group's key financial performance and asset under management [Key Financial Data](index=4&type=section&id=Key%20Financial%20Data) Total revenue declined, but profit attributable to owners surged due to proprietary investment gains, with AUM growing to USD 5.29 billion Key Financial Highlights for the Six Months Ended June 30 (million HKD) | Metric | 2025 | 2024 | Change % | | :--- | :--- | :--- | :--- | | Total Revenue | 220.8 | 235.7 | -6.3% | | Total Management Fees | 185.6 | 200.8 | -7.6% | | Total Performance Fees | 5.8 | 9.7 | -40.2% | | Operating (Loss) / Profit (before other gains) | (19.7) | 0.6 | -3,383.3% | | Profit Attributable to Owners of the Company | 251.6 | 37.4 | +572.7% | | Basic Earnings Per Share (HK cents) | 13.8 | 2.0 | +590.0% | | Diluted Earnings Per Share (HK cents) | 13.8 | 2.0 | +590.0% | | Interim Dividend Per Share | Nil | Nil | | Assets Under Management (million USD) | Metric | June 30, 2025 | December 31, 2024 | Change % | | :--- | :--- | :--- | :--- | | Assets Under Management | 5,290 | 5,110 | +3.5% | [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's insights into market conditions, financial performance, strategic initiatives, and future outlook [Market Review and Outlook](index=5&type=section&id=Market%20Review%20and%20Outlook) Asian markets stabilized in H1 2025 with strong equity performance, driving AUM growth and confidence in long-term prospects - In H1 2025, Asian markets gradually stabilized, with strong performance in Hong Kong and mainland China equities, and the Hang Seng Index and MSCI China Index recording **double-digit growth**[10](index=10&type=chunk) - Value Partners' Assets Under Management continued to grow, benefiting from strong capital inflows into dividend-oriented strategies, income-themed products, and thematic investments[10](index=10&type=chunk) - Confident in Asia's medium-to-long-term investment prospects, structural tailwinds include dynamic demographics, cutting-edge technological innovation, and robust consumer demand, with AI and blockchain technologies unleashing growth potential[10](index=10&type=chunk) [Financial Performance Overview](index=5&type=section&id=Financial%20Performance%20Overview) AUM grew to USD 5.3 billion, net profit surged to HKD 252 million driven by proprietary investment gains, and fundraising remained strong - As of end-June 2025, Assets Under Management (AUM) reached **USD 5.3 billion**, a **4% increase** from end-2024[11](index=11&type=chunk) - Recorded **HKD 252 million** in net profit, a significant increase from the same period last year, primarily due to investment gains from proprietary capital[12](index=12&type=chunk) - Total subscriptions reached **USD 733 million** in H1 2025, with strong capital inflows into China-focused funds and Value Partners US Dollar Money Market Fund[12](index=12&type=chunk) [Client Coverage and Market Expansion](index=6&type=section&id=Client%20Coverage%20and%20Market%20Expansion) Leveraging Hong Kong's "super-connector" role, the company expands client reach through cross-border schemes, digital asset integration, and private equity - Leveraging Hong Kong's "super-connector" status, deepened connections with mainland China and global investors through cross-border schemes like MRF, WMC, QDLP, and CIES 2.0[13](index=13&type=chunk) - Following MRF optimization, the flagship Value Partners High-Dividend Stock Fund recorded **strong returns and capital inflows**, and is applying for MRF recognition for multi-asset and fixed income strategy products[13](index=13&type=chunk) - Actively exploring the integration of digital asset solutions into the investment platform, collaborating with digital banks like WeLab Bank, and establishing strategic partnerships in Southeast Asian markets[14](index=14&type=chunk) - Actively advancing private equity business, focusing on high-potential areas such as artificial intelligence, biotechnology, and new consumption trends[15](index=15&type=chunk) [Product Expansion and Strategic Highlights](index=7&type=section&id=Product%20Expansion%20and%20Strategic%20Highlights) The company expanded product offerings with strong returns from flagship funds, significant inflows into money market funds, and strategic investments in biotech - The flagship Value Partners High-Dividend Stock Fund achieved a year-to-date return of **14.5%**, reaching a new historical high[16](index=16&type=chunk) - Value Partners Asia Equity and Bond Income Fund achieved a year-to-date return of **10.7%**, and Value Partners Asia Innovation Opportunities Fund returned **13.6%**, both ranking in the top **25%** of Morningstar's peer group[16](index=16&type=chunk) - China-focused funds achieved a year-to-date return of **13.9%**, Value Partners Taiwan Fund returned **13.6%**, and Value Partners Multi-Asset Fund returned **17.6%**[17](index=17&type=chunk) - Value Partners US Dollar Money Market Fund recorded **USD 86 million** in net capital inflows, and Value Gold ETF achieved a H1 return of **26.6%**[17](index=17&type=chunk) - Invested in AI-driven biotechnology and advanced diagnostic technology companies, such as Insilico Medicine and Phase Scientific[18](index=18&type=chunk) - Actively seeking to expand the ETF product portfolio, including money market fund ETFs, tokenized and virtual asset products, and strengthening core investment capabilities[19](index=19&type=chunk) - Value Partners Asia Equity and Bond Income Fund, Value Gold ETF, and Value Partners A Shares High Dividend Fund received multiple industry awards[20](index=20&type=chunk) [Business Outlook](index=8&type=section&id=Business%20Outlook) Optimistic about Asia's growth, the company will leverage value investing, innovative ETFs, digital assets, and FinTech partnerships for sustainable growth - Asia is emerging as a key engine for medium-to-long-term global growth, with Assets Under Management expected to have bottomed out and be recovering[21](index=21&type=chunk) - Will continue to leverage over **30 years of value investing experience** and partnerships with leading institutions in mainland China and the region[21](index=21&type=chunk) - Actively developing innovative ETF strategies and digital asset integration, utilizing tokenization, Web 3.0, and AI technologies to meet the needs of a new generation of investors[21](index=21&type=chunk) - Continuously collaborating with digital banks and FinTech partners to enhance distribution capabilities, diversify product portfolios, and provide technology-enabled investment solutions[22](index=22&type=chunk) [Acknowledgements](index=9&type=section&id=Acknowledgements) The company extends gratitude to employees, shareholders, clients, and partners for their support and commitment to continuous growth and innovation - Sincere gratitude to all employees, shareholders, clients, and business partners for their continuous support and trust[23](index=23&type=chunk) - Commended colleagues for their dedication, unwavering commitment, and valuable contributions to Value Partners' sustained growth[23](index=23&type=chunk) - Will continue to provide the highest quality services and create value for clients, striving for innovation and excellence in the evolving asset and wealth management landscape[23](index=23&type=chunk) [Financial Review](index=10&type=section&id=Financial%20Review) This section provides a detailed analysis of Value Partners Group's financial performance, including AUM, revenue, expenses, and liquidity [Assets Under Management](index=10&type=section&id=Assets%20Under%20Management) AUM increased to USD 5.29 billion driven by positive fund returns, despite net redemptions, with institutional clients dominating - As of end-June 2025, Assets Under Management (AUM) was **USD 5.29 billion**, a **3.5% increase** from end-2024[26](index=26&type=chunk) - The increase in AUM was primarily due to **positive fund returns of USD 526 million** in H1 2025[26](index=26&type=chunk) - Value Partners High-Dividend Stock Fund and Value Partners Value Fund recorded increases of **14.5%** and **14.1%** respectively, while Value Gold ETF returned **26.6%**[26](index=26&type=chunk) Net Subscriptions and Redemptions (million USD) | Metric | H1 2025 | H2 2024 | H1 2024 | | :--- | :--- | :--- | :--- | | Total Subscriptions | 733 | 982 | 865 | | Total Redemptions | 1,008 | 1,627 | 1,265 | | Net Subscriptions / (Redemptions) | (275) | (645) | (400) | Assets Under Management by Brand | Brand | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Group Branded Funds | 91% | 90% | | Mandated and Associate Funds | 9% | 10% | Assets Under Management by Strategy | Strategy | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Absolute Return Long-Biased Funds | 57% | 56% | | Fixed Income Funds | 21% | 23% | | Alternative Investment Funds | 9% | 9% | | Exchange Traded Funds | 7% | 6% | | Multi-Asset Funds | 6% | 6% | Client Base by Category | Client Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Retail | 47% | 46% | | Institutional Clients | 33% | 32% | | High Net Worth Individuals | 15% | 16% | | Funds of Funds | 4% | 4% | | Others | 1% | 2% | Client Base by Geography | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Hong Kong SAR | 79% | 79% | | Mainland China | 6% | 6% | | Europe | 4% | 4% | | Japan | 3% | 3% | | Singapore | 3% | 3% | | Others | 5% | 5% | [Revenue and Fee Rate Analysis](index=12&type=section&id=Revenue%20and%20Fee%20Rate%20Analysis) Total revenue and management fees decreased, performance fees dropped significantly, and fee rates declined due to product mix Total Revenue (million HKD) | Metric | H1 2025 | H1 2024 | Change % | | :--- | :--- | :--- | :--- | | Total Revenue | 220.8 | 235.7 | -6.3% | | Total Management Fees | 185.6 | 200.8 | -7.6% | | Total Performance Fees | 5.8 | 9.7 | -40.2% | - Total revenue decreased primarily due to an **8% reduction** in total management fees to **HKD 185.6 million**, with average assets under management decreasing to **USD 5.071 billion**[35](index=35&type=chunk) - Annualized gross management fee rate decreased to **96 basis points** (H1 2024: 98 basis points), and annualized net management fee rate decreased to **56 basis points** (H1 2024: 59 basis points), due to a higher proportion of lower-fee income-themed products[35](index=35&type=chunk) - Other income (primarily including interest income, dividend income, and rental income) totaled **HKD 53.7 million**, a significant increase from HKD 32 million in the prior period[36](index=36&type=chunk) [Other Gains or Losses](index=13&type=section&id=Other%20Gains%20or%20Losses) Net other gains surged to HKD 211.4 million, driven by realized and unrealized fair value changes from proprietary investments and foreign exchange gains Other Gains - Net (million HKD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Investment Gains | | | | Net Realized Gains on Financial Assets at Fair Value Through Profit or Loss | 132.0 | 13.3 | | Net Unrealized Gains on Financial Assets at Fair Value Through Profit or Loss | 49.7 | 94.8 | | Net Foreign Exchange Gains / (Losses) | 29.8 | (17.6) | | Other Gains - Net | 211.4 | 92.0 | - Other gains significantly increased, primarily due to realized and unrealized fair value changes from proprietary investments (especially Value Gold ETF, property valuations, and foreign exchange gains from Asian investments)[37](index=37&type=chunk) [Investments in Joint Ventures](index=13&type=section&id=Investments%20in%20Joint%20Ventures) The Group's share of profit from joint ventures significantly improved to HKD 65.5 million, driven by property sales and fair value changes - Value Partners Group engages in real estate private equity business through its property partnerships, and during the period, sold a **50% interest** in two logistics centers in Japan for a total consideration of **HKD 174 million**[38](index=38&type=chunk) - For the six months ended June 30, 2025, the Group's share of profit from joint ventures was **HKD 65.5 million**, a significant improvement from a **loss of HKD 46 million** in the prior period[38](index=38&type=chunk) - Gains include net rental income, fair value changes of properties, and exchange differences[38](index=38&type=chunk) [Significant Investments](index=13&type=section&id=Significant%20Investments) The Group holds a 12.1% interest in Value Gold ETF, recording a net realized investment gain of HKD 118.2 million - As of June 30, 2025, the Group held a **12.1% interest** in Value Gold ETF, with a fair value of **HKD 356.4 million**[39](index=39&type=chunk) - During the period, this investment recorded a net unrealized investment loss of **HKD 7.1 million** (December 31, 2024: gain of HKD 62.5 million) and a net realized investment gain of **HKD 118.2 million** (December 31, 2024: HKD 37.4 million)[39](index=39&type=chunk) [Cost Management](index=14&type=section&id=Cost%20Management) Staff costs increased due to higher bonuses from realized investment gains, while other operating expenses slightly decreased Total Expense Analysis (million HKD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Staff Costs and Benefits | | | | Fixed Remuneration and Staff Benefits | 92.4 | 96.5 | | Bonuses | 33.9 | 1.2 | | Staff Rebates | 1.4 | 1.8 | | Share-based Payment Reversal | – | (1.0) | | Other Expenses | | | | Other Operating Expenses | 25.1 | 26.4 | | Information Processing and Communication | 23.5 | 23.7 | | Sales and Marketing | 2.3 | 2.7 | | Depreciation (excluding right-of-use assets - property depreciation) | 4.7 | 5.4 | | Non-recurring Expenses | 3.1 | 4.0 | - Bonuses increased to **HKD 33.9 million** (H1 2024: HKD 1.2 million), primarily from realized gains on the Group's investments[41](index=41&type=chunk) - The Group will continue to maintain a prudent approach to cost management and invest in key strategic growth areas[42](index=42&type=chunk) [Dividend Policy](index=15&type=section&id=Dividend%20Policy) The Group's dividend policy aligns annual payments with full-year performance, considering the asset management business's revenue volatility - The Group adopted a consistent dividend distribution policy, considering the relatively unstable nature of asset management business revenue sources[43](index=43&type=chunk) - Dividends (if any) are declared annually at the end of each financial year to align payments with full-year performance and financial position[43](index=43&type=chunk) [Liquidity and Financial Resources](index=15&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains strong liquidity with HKD 1.525 billion in net cash and a current ratio of 10.3 times - As of June 30, 2025, net cash balances were **HKD 1.525 billion** (December 31, 2024: HKD 1.077 billion), and investments amounted to **HKD 2.263 billion** (December 31, 2024: HKD 2.402 billion)[44](index=44&type=chunk) - The Group had no other corporate bank borrowings apart from those related to property partnerships[44](index=44&type=chunk) - Debt-to-equity ratio was **zero**, and the current ratio was **10.3 times** (December 31, 2024: 6.3 times)[44](index=44&type=chunk) [Capital Structure](index=15&type=section&id=Capital%20Structure) Shareholders' equity increased to HKD 3.8225 billion, with the total number of issued shares remaining stable - As of June 30, 2025, shareholders' equity was **HKD 3.8225 billion** (December 31, 2024: HKD 3.5597 billion)[45](index=45&type=chunk) - Total number of issued shares was **1.83 billion**, consistent with December 31, 2024[45](index=45&type=chunk) [Independent Review Report](index=16&type=section&id=Independent%20Review%20Report) This section presents the independent review report on the Group's interim financial information [Scope of Review and Conclusion](index=16&type=section&id=Scope%20of%20Review%20and%20Conclusion) The independent review found no material non-compliance with HKAS 34 in the interim financial information, without expressing an audit opinion - PricewaterhouseCoopers has reviewed the interim financial information; the scope of review is less than an audit, and no audit opinion is expressed[49](index=49&type=chunk) - The conclusion is that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[50](index=50&type=chunk) [Interim Condensed Consolidated Financial Information](index=17&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides the interim condensed consolidated financial statements, including the income statement, balance sheet, statement of changes in equity, and cash flow statement [Condensed Consolidated Statement of Comprehensive Income](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Net revenue was HKD 113.1 million, with profit for the period reaching HKD 251.6 million, and EPS at 13.8 HK cents Condensed Consolidated Statement of Comprehensive Income Highlights (thousand HKD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Revenue | 113,057 | 129,260 | | Total Net Income | 166,753 | 161,298 | | Operating (Loss) / Profit (before other gains) | (19,689) | 602 | | Net Investment Gains | 181,708 | 108,140 | | Net Foreign Exchange Gains / (Losses) | 29,759 | (17,636) | | Profit Before Tax | 253,656 | 42,338 | | Profit for the Period | 251,611 | 37,365 | | Basic Earnings Per Share (HK cents) | 13.8 | 2.0 | | Diluted Earnings Per Share (HK cents) | 13.8 | 2.0 | [Condensed Consolidated Statement of Financial Position](index=18&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total net assets were HKD 3.8225 billion, with cash and cash equivalents significantly increasing to HKD 1.525 billion Condensed Consolidated Statement of Financial Position Highlights (thousand HKD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 2,427,321 | 2,538,300 | | Current Assets | 1,636,951 | 1,236,913 | | Current Liabilities | (159,142) | (195,029) | | Net Current Assets | 1,477,809 | 1,041,884 | | Net Assets | 3,822,533 | 3,559,773 | | Total Equity | 3,822,533 | 3,559,773 | - As of June 30, 2025, cash and cash equivalents were **HKD 1.525 billion**, a significant increase from **HKD 1.0774 billion** as of December 31, 2024[54](index=54&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=19&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to owners increased to HKD 3.8148 billion, driven by profit for the period and other comprehensive income Condensed Consolidated Statement of Changes in Equity Highlights (thousand HKD) | Metric | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Total Equity at Beginning of Period | 3,559,773 | 3,542,698 | | Profit for the Period | 251,611 | 37,365 | | Total Comprehensive Income for the Period | 281,027 | 28,435 | | Dividends Paid to Owners of the Company | (18,267) | (913,355) | | Total Equity at End of Period | 3,822,533 | 3,570,139 | - Total equity attributable to owners of the Company increased from **HKD 3.5521 billion** as of January 1, 2025, to **HKD 3.8148 billion** as of June 30, 2025[56](index=56&type=chunk) - Profit for the period of **HKD 251.6 million** and other comprehensive income of **HKD 29.42 million** were the primary growth drivers[56](index=56&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities was HKD 7.36 million, with investing activities generating HKD 462.4 million, leading to a period-end cash balance of HKD 1.525 billion Condensed Consolidated Statement of Cash Flows Highlights (thousand HKD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Generated From / (Used In) Operating Activities | 7,356 | (6,192) | | Net Cash Generated From Investing Activities | 462,391 | 298,495 | | Net Cash Used In Financing Activities | (29,217) | (926,838) | | Net Increase / (Decrease) in Cash and Cash Equivalents | 440,530 | (634,535) | | Cash and Cash Equivalents at End of Period | 1,524,960 | 922,361 | - Net cash generated from investing activities was **HKD 462.4 million**, primarily from the sale of investments totaling **HKD 724.2 million**[58](index=58&type=chunk) - Net cash used in financing activities was **HKD 29.22 million**, primarily including dividend payments of **HKD 18.27 million**[58](index=58&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=21&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes explaining the accounting policies, fair value estimates, segment information, and other financial details supporting the interim financial statements [General Information](index=21&type=section&id=General%20Information) Value Partners Group, incorporated in the Cayman Islands, provides investment management services, with this unaudited interim report approved on August 13, 2025 - The Company is incorporated in the Cayman Islands and primarily provides investment management services for investment funds and managed accounts[60](index=60&type=chunk) - This interim condensed consolidated financial information is unaudited and was approved for publication by the Board of Directors on **August 13, 2025**[61](index=61&type=chunk) [Basis of Preparation](index=21&type=section&id=Basis%20of%20Preparation) This interim financial information is prepared under HKAS 34 and should be read with the 2024 annual financial statements - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[62](index=62&type=chunk) - Should be read in conjunction with the annual financial statements for the year ended December 31, 2024[62](index=62&type=chunk) [Accounting Policies](index=21&type=section&id=Accounting%20Policies) Accounting policies are consistent with the 2024 annual financial statements, with interim income tax accrued based on expected annual earnings - The accounting policies used are consistent with those presented in the annual financial statements for the year ended December 31, 2024[63](index=63&type=chunk) - Income tax for the interim period is accrued using the tax rate applicable to the expected total annual earnings[63](index=63&type=chunk) [Fair Value Estimation](index=22&type=section&id=Fair%20Value%20Estimation) Total investments were HKD 1.5222 billion, categorized across three fair value levels, with Level 3 changes from new injections and capital returns Investment Fair Value Measurement Levels (thousand HKD) | Level | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Level 1 | 363,160 | 512,808 | | Level 2 | 1,118,081 | 1,208,504 | | Level 3 | 40,912 | 27,780 | | **Total** | **1,522,153** | **1,749,092** | - Changes in Level 3 instruments include new capital injections of **HKD 14.04 million** into two new investment funds, and capital returns of **HKD 2.3 million** from one unlisted investment fund[69](index=69&type=chunk) - Trade receivables, deposits for purchase of investments, receivables from sale of investments, other receivables, cash in investment accounts, cash and cash equivalents, and other financial liabilities are all due within one year, and their carrying amounts approximate their respective fair values[70](index=70&type=chunk) [Segment Information](index=24&type=section&id=Segment%20Information) Asset management is the sole reportable segment, generating revenue from investment services, primarily operating in Greater China with assets in Hong Kong - The Group has one reportable segment: asset management business, with revenue derived from providing investment management services to investment funds and managed accounts[72](index=72&type=chunk) - The Group primarily operates in Greater China, with the vast majority of its assets located in Hong Kong[73](index=73&type=chunk) [Revenue](index=25&type=section&id=Revenue) Total revenue was HKD 220.8 million, mainly from management fees, performance fees, and subscription fees Revenue Composition (thousand HKD) | Revenue Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Management Fees | 185,565 | 200,789 | | Performance Fees | 5,830 | 9,748 | | Subscription Fees | 29,399 | 25,214 | | **Total Revenue** | **220,794** | **235,751** | [Other Income](index=25&type=section&id=Other%20Income) Total other income was HKD 53.7 million, primarily from money market investment gains, rental income, and dividends Other Income Composition (thousand HKD) | Income Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest Income from Cash and Cash Equivalents | 1,332 | 7,090 | | Net Investment Gains from Money Market Instruments | 36,965 | 9,775 | | Interest Income from Financial Assets at Fair Value Through Profit or Loss | 705 | 2,256 | | Interest Income from Financial Assets at Fair Value Through Other Comprehensive Income | 654 | – | | Dividend Income from Financial Assets at Fair Value Through Profit or Loss | 5,038 | 5,366 | | Rental Income from an Investment Property | 6,004 | 6,073 | | Others | 2,998 | 1,478 | | **Total Other Income** | **53,696** | **32,038** | [Staff Costs and Benefits](index=25&type=section&id=Staff%20Costs%20and%20Benefits) Total staff costs and benefits were HKD 127.7 million, with a significant increase in bonuses due to realized investment gains Staff Costs and Benefits Composition (thousand HKD) | Expense Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Salaries, Wages, Bonuses and Other Benefits | 124,723 | 95,840 | | Pension Costs | 2,980 | 3,682 | | Net Reversal of Share-based Payment | – | (994) | | **Total Staff Costs and Benefits** | **127,703** | **98,528** | [Other Gains - Net](index=26&type=section&id=Other%20Gains%20-%20Net) Net other gains reached HKD 211.4 million, driven by realized and unrealized gains on financial assets and foreign exchange gains Other Gains - Net Composition (thousand HKD) | Gain Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Realized Gains on Financial Assets at Fair Value Through Profit or Loss | 132,054 | 13,309 | | Net Unrealized Gains on Financial Assets at Fair Value Through Profit or Loss | 49,654 | 94,831 | | Net Foreign Exchange Gains / (Losses) | 29,759 | (17,636) | | **Total Other Gains - Net** | **211,374** | **92,019** | [Tax Expense](index=26&type=section&id=Tax%20Expense) Total tax expense was HKD 2.05 million, with no income tax payable under Cayman Islands tax law - Under current Cayman Islands tax law, the Group has **no income tax payable**[79](index=79&type=chunk) Tax Expense Composition (thousand HKD) | Tax Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hong Kong Profits Tax | 535 | 336 | | Overseas Tax | 1,474 | 5,556 | | Adjustments for Prior Years | – | (740) | | Deferred Tax | 36 | (179) | | **Total Tax Expense** | **2,045** | **4,973** | [Dividends](index=26&type=section&id=Dividends) A final dividend of HKD 18.27 million was paid for 2024, with no interim dividend recommended for H1 2025 - The Company declared a final dividend of **HKD 18.27 million** for the year ended December 31, 2024, which was paid on **May 30, 2025**[81](index=81&type=chunk) - The Board did not recommend an interim dividend for the six months ended June 30, 2025[81](index=81&type=chunk) [Earnings Per Share](index=27&type=section&id=Earnings%20Per%20Share) Profit attributable to owners was HKD 251.6 million, resulting in basic and diluted EPS of 13.8 HK cents - Profit attributable to owners of the Company was **HKD 251.6 million** (2024: HKD 37.37 million)[82](index=82&type=chunk) - Both basic and diluted earnings per share were **13.8 HK cents** (2024: 2.0 HK cents), calculated based on the weighted average of **1.8267 billion** shares outstanding during the period[82](index=82&type=chunk) [Property, Plant and Equipment](index=27&type=section&id=Property%2C%20Plant%20and%20Equipment) Net book value of property, plant, and equipment slightly increased to HKD 146.4 million, with additions and depreciation Changes in Property, Plant and Equipment (thousand HKD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Book Value at Beginning of Period | 145,400 | 156,232 | | Additions | 1,505 | 1,006 | | Disposals | (60) | – | | Depreciation | (3,990) | (7,917) | | Exchange Differences | 3,515 | (3,921) | | **Net Book Value at End of Period** | **146,370** | **145,400** | [Investment Properties](index=27&type=section&id=Investment%20Properties) Net book value of investment properties was HKD 185 million, primarily New Zealand student accommodation, with foreign currency translation gains Changes in Investment Properties (thousand HKD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Beginning of Period / Year | 173,307 | 191,080 | | Foreign Currency Translation | 11,697 | (17,773) | | **End of Period / Year** | **185,004** | **173,307** | - Investment properties primarily consist of student accommodation in New Zealand, measured at fair value, with valuations using the income approach and reference to recent market transactions[84](index=84&type=chunk) [Intangible Assets](index=28&type=section&id=Intangible%20Assets) Net book value of intangible assets was HKD 8.66 million, including software and memberships, with HKD 0.67 million in amortization Changes in Intangible Assets (thousand HKD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Book Value at Beginning of Period | 9,357 | 12,728 | | Disposals | (34) | (1,030) | | Amortization | (670) | (2,328) | | Exchange Differences | 4 | (13) | | **Net Book Value at End of Period** | **8,657** | **9,357** | - Intangible assets include computer software and club memberships[85](index=85&type=chunk) [Investments in Joint Ventures](index=28&type=section&id=Investments%20in%20Joint%20Ventures) Investments in joint ventures totaled HKD 555.9 million, with a significant improvement in share of profit to HKD 65.51 million - The Group holds interests in several joint ventures, primarily related to investments in property partnerships[86](index=86&type=chunk) - During the period, Value Investment Group Limited, through its subsidiary, sold two logistics centers in Japan for a total consideration of **HKD 347 million**[87](index=87&type=chunk) Changes in Investments in Joint Ventures (thousand HKD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investments in Joint Ventures at Beginning of Period / Year | 168,137 | 227,457 | | Share of Profit / (Loss) of Joint Ventures | 65,507 | (46,652) | | Exchange Differences | 1,825 | (12,668) | | Shareholder Loans at Beginning of Period / Year | 311,529 | 378,611 | | Net Change in Shareholder Loans | (17,932) | (33,801) | | Exchange Differences | 26,833 | (33,281) | | **End of Period / Year** | **555,899** | **479,666** | [Investments in Associates](index=30&type=section&id=Investments%20in%20Associates) The Group holds a 25% interest in an associate, with a carrying amount of HKD 0.934 million, and other associate investment funds totaling HKD 334.4 million - The Group holds a **25% interest** in M & A Value Partners Asset Management Malaysia Sdn. Bhd., accounted for using the equity method[91](index=91&type=chunk) Changes in Investments in Associates (Equity Method) (thousand HKD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Beginning of Period / Year | 1,388 | – | | Additions | – | 2,137 | | Share of Loss of an Associate | (454) | (749) | | **End of Period / Year** | **934** | **1,388** | - The Group measures interests in other associate investment funds at fair value, totaling **HKD 334.4 million** as of June 30, 2025[92](index=92&type=chunk) [Investments](index=32&type=section&id=Investments) Total investments were HKD 1.5222 billion, including listed and unlisted securities, with a significant portion at fair value through profit or loss Investment Composition (thousand HKD) | Investment Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Market Value of Listed Securities | 493,667 | 512,808 | | Fair Value of Unlisted Securities | 1,028,486 | 1,236,284 | | **Total Investments** | **1,522,153** | **1,749,092** | - Investments are categorized into financial assets at fair value through profit or loss (**HKD 1.3215 billion**) and financial assets at fair value through other comprehensive income (**HKD 200.7 million**)[94](index=94&type=chunk) - The Group, as investment manager or advisor for certain investment funds, provides seed capital for these funds and determines all other investment funds to be unconsolidated structured entities[96](index=96&type=chunk) [Other Payables and Accruals](index=33&type=section&id=Other%20Payables%20and%20Accruals) Other payables and accruals cover daily operational expenses, primarily denominated in HKD, RMB, and USD - This balance represents other payables and accruals required for the Group's daily operations, including staff costs and benefits, information technology fees, legal and professional fees, etc[97](index=97&type=chunk) - This balance is primarily denominated in HKD, RMB, and USD[97](index=97&type=chunk) [Investment in Value Partners Asia Pacific Real Estate Limited Partnership](index=33&type=section&id=Investment%20in%20Value%20Partners%20Asia%20Pacific%20Real%20Estate%20Limited%20Partnership) The Group's consolidated property partnership assets totaled HKD 679.4 million, with borrowings secured by New Zealand student accommodation - The Group holds a controlling interest in the property partnership, and all assets and liabilities of this fund have been consolidated into the Group's interim condensed consolidated statement of financial position[99](index=99&type=chunk) Consolidated Assets and Liabilities of Property Partnership (thousand HKD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investments in Joint Ventures | 555,899 | 479,666 | | Investment Properties | 185,004 | 173,307 | | Borrowings (Non-current) | (68,692) | – | | Borrowings (Current) | (1,133) | (65,941) | | Other Net Assets (Current) | 8,302 | 18,166 | | **Total** | **679,380** | **605,198** | - The property partnership's borrowings are secured by student accommodation in New Zealand, with the repayment date extended to **July 31, 2027**[101](index=101&type=chunk) [Trade Receivables](index=35&type=section&id=Trade%20Receivables) Total trade receivables were HKD 40.96 million, with most within credit terms and no impairment, indicating sound management Trade Receivables Aging Analysis (thousand HKD) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables Past Due But Not Impaired | | | | 1 to 30 days | 1,249 | – | | 31 to 60 days | – | 1,077 | | 61 to 90 days | 113 | 35 | | Over 90 days | 168 | 215 | | Trade Receivables Within Credit Terms | 39,428 | 36,347 | | **Total Trade Receivables** | **40,958** | **37,674** | - The carrying amount of trade receivables approximates their respective fair values, with **no impairment provisions**[103](index=103&type=chunk) [Deposits for Purchase of Investments](index=35&type=section&id=Deposits%20for%20Purchase%20of%20Investments) The Group holds USD 2 million in deposits for a 20.13% interest in STAR Asset Management, pending regulatory approval - The Group holds **USD 2 million** (approximately **HKD 16 million**) in deposits for the purchase of a **20.13% interest** in PT Surya Timur Alam Raya Asset Management (STAR)[105](index=105&type=chunk) - The purchase transaction remains subject to regulatory approval[105](index=105&type=chunk) [Cash and Cash Equivalents](index=36&type=section&id=Cash%20and%20Cash%20Equivalents) Total cash and cash equivalents were HKD 1.525 billion, primarily in money market instruments and short-term bank deposits, indicating strong liquidity Cash and Cash Equivalents Composition (thousand HKD) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank and Cash on Hand | 59,238 | 137,144 | | Short-term Bank Deposits | 162,330 | 117,410 | | Investments in Money Market Instruments | 1,295,670 | 821,868 | | Cash in Investment Accounts | 7,722 | 1,015 | | **Total Cash and Cash Equivalents** | **1,524,960** | **1,077,437** | [Issued Equity](index=36&type=section&id=Issued%20Equity) Total issued ordinary shares were 1.8267 billion. 42.93 million share options were granted, with 71.16 million outstanding at period-end - As of June 30, 2025, the Company's total number of issued ordinary shares was **1.8267 billion**, with a par value of **HKD 0.1** per share[107](index=107&type=chunk) - During the period, **42.927 million** share options were granted under the share option scheme, but no share-based payment expense was recognized due to the difficulty in meeting vesting conditions[110](index=110&type=chunk) Changes in Number of Outstanding Share Options (thousand units) | Metric | January 1, 2025 | Granted | Lapsed | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Number of Share Options | 88,709 | 42,928 | (60,478) | 71,159 | - As of June 30, 2025, the total number of outstanding share options was **71.159 million**, of which **28.231 million** were exercisable at period-end[131](index=131&type=chunk)[112](index=112&type=chunk) [Distribution Fee Payables](index=38&type=section&id=Distribution%20Fee%20Payables) Total distribution fee payables were HKD 43.51 million, mostly due within 30 days, with carrying amount approximating fair value Distribution Fee Payables Aging Analysis (thousand HKD) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 38,604 | 40,227 | | 31 to 60 days | 193 | – | | Over 90 days | 4,714 | 4,667 | | **Total Distribution Fee Payables** | **43,511** | **44,894** | - The carrying amount of distribution fee payables approximates their fair value[114](index=114&type=chunk) [Disposal of a Subsidiary](index=38&type=section&id=Disposal%20of%20a%20Subsidiary) The Group disposed of a 75% interest in a subsidiary for HKD 4.6 million, retaining 25% as an associate investment, resulting in a HKD 0.965 million gain - The Group disposed of a **75% equity interest** in M&A Value Partners Asset Management Malaysia Sdn. Bhd. for a consideration of **HKD 4.6 million**[115](index=115&type=chunk) - After the disposal, a **25% equity interest** was retained and recognized as "Investment in an associate"[115](index=115&type=chunk) Gain and Cash Flow from Disposal of a Subsidiary (thousand HKD) | Metric | Amount | | :--- | :--- | | Gain on disposal of a subsidiary | 965 | | Cash inflow from disposal | 4,528 | | Less: Cash and cash equivalents disposed of | (5,519) | | **Net cash outflow - investing activities** | **(991)** | [Net Gains on Financial Assets at Fair Value Through Other Comprehensive Income](index=39&type=section&id=Net%20Gains%20on%20Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) Net unrealized gains on financial assets at fair value through other comprehensive income were HKD 11.961 million Net Gains on Financial Assets at Fair Value Through Other Comprehensive Income (thousand HKD) | Gain Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net unrealized gains on financial assets at fair value through other comprehensive income | 11,961 | – | [Commitments](index=39&type=section&id=Commitments) Operating lease commitments were zero, with uncalled capital commitments of HKD 91.4 million in a private equity fund and HKD 3.96 million for software licenses [Operating Lease Commitments](index=39&type=section&id=Operating%20Lease%20Commitments) Operating lease commitments were zero as of June 30, 2025, reflecting a reduction from the prior period Operating Lease Commitments (thousand HKD) | Term | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within one year | – | 125 | | **Total Operating Lease Commitments** | **–** | **125** | [Capital Commitments](index=39&type=section&id=Capital%20Commitments) Uncalled capital commitments in a private equity fund were HKD 91.4 million, with additional commitments for software and hardware licenses - As of June 30, 2025, the Group's uncalled capital commitments in a private equity fund amounted to **HKD 91.402 million**[121](index=121&type=chunk) Capital Commitments for Software and Hardware Licenses (thousand HKD) | Term | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within one year | 1,980 | 1,980 | | One to two years | 1,980 | 1,980 | | Two to three years | – | 1,980 | | **Total** | **3,960** | **5,940** | [Related Party Transactions](index=40&type=section&id=Related%20Party%20Transactions) This section details related party transactions, key management compensation, and the fair value of the Group's investments in managed funds [Summary of Related Party Transactions](index=40&type=section&id=Summary%20of%20Related%20Party%20Transactions) The Group conducted various related party transactions, including investment management fees, advisory fees, and distribution fees Summary of Related Party Transactions (thousand HKD) | Transaction Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Investment management fee income from related parties of major shareholders | 262 | – | | Investment management fee income from related parties of directors | 76 | 67 | | Advisory fee expenses paid to related parties of directors | 29 | 173 | | Distribution fee expenses paid to related parties of major shareholders | 147 | 34 | [Key Management Personnel Compensation](index=40&type=section&id=Key%20Management%20Personnel%20Compensation) Key management personnel compensation totaled HKD 6.16 million, including salaries, wages, and pension costs Key Management Personnel Compensation (thousand HKD) | Compensation Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Salaries, Wages and Other Benefits | 6,132 | 9,894 | | Net Reversal of Share-based Payment | – | (1,562) | | Pension Costs | 27 | 33 | | **Total Key Management Personnel Compensation** | **6,159** | **8,365** | [Investments in Investment Funds Managed/Advised by the Group](index=41&type=section&id=Investments%20in%20Investment%20Funds%20Managed%2FAdvised%20by%20the%20Group) The Group holds HKD 1.8937 billion in fair value of investments in funds it manages or advises - The Group holds interests in investment funds it manages or advises, from which it earns investment management or advisory fees and fund distribution business fees[126](index=126&type=chunk) Fair Value of Investments in Investment Funds Managed/Advised by the Group (thousand HKD) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Consolidated Structured Entities | 682,265 | 608,053 | | Unconsolidated Structured Entities | 1,211,411 | 1,559,318 | | **Total** | **1,893,676** | **2,167,371** | [Other Information](index=43&type=section&id=Other%20Information) This section covers additional disclosures such as directors' and major shareholders' interests, dividend policy, foreign currency exposure, human resources, and corporate governance [Directors' Interests in Shares, Underlying Shares and Debentures](index=43&type=section&id=Directors'%20Interests%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) Directors and chief executive held interests in shares and underlying shares, with 71.16 million share options outstanding Directors' Long Positions in Shares (number of shares) | Name of Director / Member of Leadership Committee | Number of Shares | Approximate % of Issued Shares (shares only) | Number of Underlying Shares held under Share Option Scheme | Approximate % of Issued Shares (total of shares held/interested and underlying shares under Share Option Scheme) | | :--- | :--- | :--- | :--- | :--- | | Ms. Linda Lim | – | – | 18,267,098 | 0.99% | | Mr. Chen Rongda | – | – | 4,566,775 | 0.25% | | Ms. Wu Chuk Wah | – | – | 3,653,420 | 0.20% | | Dato' Seri Cheah Cheng Hye | 180,983,292 (Settlor / Beneficial) | 9.90% | 1,855,000 | 3.92% (Beneficial) | | Dr. Chen Shida | – | – | 350,000 | 0.01% | | Mr. Huang Baorong | – | – | 350,000 | 0.01% | - For the six months ended June 30, 2025, **42.927 million** share options were granted under the share option scheme[130](index=130&type=chunk) - The total number of outstanding share options was **71.159 million**, of which **28.231 million** were exercisable at period-end[131](index=131&type=chunk)[112](index=112&type=chunk) [Major Shareholders' Interests](index=45&type=section&id=Major%20Shareholders'%20Interests) Major shareholders include GF Securities (20.04%), Ms. Du Qiaoxian (13.73%), and Mr. Yeh Wei-Yi (8.93%) Major Shareholders' Interests in Shares (number of shares) | Name / Company Name | Nature of Interest | Number of Shares Held / Interested | Approximate % of Issued Shares (shares held/interested only) | Number of Underlying Shares held under Share Option Scheme | Approximate % of Issued Shares (total of shares held/interested and underlying shares under Share Option Scheme) | | :--- | :--- | :--- | :--- | :--- | :--- | | GF Securities Co., Ltd. | Corporate | 366,000,000 | 20.04% | – | 20.04% | | GF Holdings (Hong Kong) Corporation Limited | Beneficial | 366,000,000 | 20.04% | – | 20.04% | | Ms. Du Qiaoxian | Spouse | 250,871,219 | 13.73% | 1,855,000 | 13.83% | | Cheah Capital Management Limited | Beneficial | 180,983,292 | 9.90% | – | 9.90% | | Cheah Company Limited | Corporate | 180,983,292 | 9.90% | – | 9.90% | | Zedra Jersey Nominee Company Limited | Nominee | 180,983,292 | 9.90% | – | 9.90% | | Zedra Jersey Trust Corporation Limited | Trustee | 180,983,292 | 9.90% | – | 9.90% | | Mr. Yeh Wei-Yi | Beneficial | 163,072,715 | 8.93% | – | 8.93% | | Ms. Yeh Leung Mei-Lan | Spouse | 163,072,715 | 8.93% | – | 8.93% | [Dividends](index=46&type=section&id=Dividends) No interim dividend was recommended for H1 2025, aligning with the year-end dividend policy - The Board does not recommend an interim dividend for the six months ended June 30, 2025[138](index=138&type=chunk) [Foreign Currency Exchange](index=46&type=section&id=Foreign%20Currency%20Exchange) The Group has no significant foreign exchange risk beyond RMB deposits, with most transactions in HKD and USD - Apart from approximately **HKD 154 million** in RMB-denominated bank deposits, the Group has no other significant foreign exchange risk[139](index=139&type=chunk) - The majority of income, expenses, assets, and liabilities are denominated in HKD and USD[139](index=139&type=chunk) [Human Resources](index=46&type=section&id=Human%20Resources) The Group had 135 employees across its offices, offering performance-based compensation and discretionary bonuses to incentivize talent - As of June 30, 2025, the Group had **106 employees** in Hong Kong (June 30, 2024: 125), **21 employees** in Shanghai (June 30, 2024: 22), **4 employees** in Shenzhen (June 30, 2024: 5), and **4 employees** in Singapore and London (June 30, 2024: 11)[140](index=140&type=chunk) - The Group provides employees with a compensation package based on business performance, market practice, and competitive conditions, and grants year-end discretionary bonuses[140](index=140&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=46&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during H1 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[141](index=141&type=chunk) [Audit Committee](index=46&type=section&id=Audit%20Committee) The Audit Committee reviewed accounting principles, audit, internal control, and the unaudited interim results for H1 2025 - The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's accounting principles, audit, internal control, and financial reporting matters[142](index=142&type=chunk) - The review included the unaudited interim results for the six months ended June 30, 2025[142](index=142&type=chunk) [Independent Review of Interim Results](index=47&type=section&id=Independent%20Review%20of%20Interim%20Results) The unaudited interim results for H1 2025 were independently reviewed by PricewaterhouseCoopers per HKSAE 2410 - The Group's unaudited interim results for the six months ended June 30, 2025, have been reviewed by external auditor PricewaterhouseCoopers[144](index=144&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"[144](index=144&type=chunk) [Corporate Governance](index=47&type=section&id=Corporate%20Governance) The Company maintains high corporate governance standards, complying with Listing Rules' code provisions for H1 2025 - The Company is committed to maintaining a high standard of corporate governance and regularly reviews its practices[145](index=145&type=chunk) - For the six months ended June 30, 2025, the Company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[145](index=145&type=chunk) [Standard Code for Securities Transactions by Directors](index=47&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Model Code for Directors' securities transactions, with all Directors confirming compliance for H1 2025 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct[147](index=147&type=chunk) - All Directors have confirmed their compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[147](index=147&type=chunk) [Publication of Interim Results and Interim Report on HKEX](index=47&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report%20on%20HKEX) Interim results and report are published on HKEX and the Company's website for timely stakeholder communication - The interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.valuepartners-group.com)[148](index=148&type=chunk) - The interim report will be dispatched to shareholders and published on the HKEX and Company websites in due course[148](index=148&type=chunk) [Acknowledgements](index=47&type=section&id=Acknowledgements) The Company thanks shareholders, partners, clients, and dedicated employees for their loyal support and contributions to its achievements - The Company expresses sincere gratitude for the loyal support of its shareholders, business partners, distributors, and clients[149](index=149&type=chunk) - Thanks dedicated employees for their contributions to the Group's outstanding achievements[149](index=149&type=chunk)

[Financial Performance Overview](index=1&type=section&id=I.%20Financial%20Performance%20Overview) [Condensed Consolidated Interim Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) During the reporting period, the company's revenue slightly decreased year-on-year, while gross profit significantly declined, leading to a shift from operating profit to loss and ultimately a net loss | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 272,860 | 276,378 | | Cost of Revenue | (192,464) | (170,936) | | Gross Profit | 80,396 | 105,442 | | Operating (Loss)/Profit | (8,427) | 10,428 | | Loss/Profit for the Period | (8,571) | 10,130 | | Basic and Diluted Loss/Earnings Per Share (RMB cents) | (0.76) cents | 0.89 cents | [Condensed Consolidated Interim Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) During the reporting period, the company's total comprehensive loss matched the loss for the period at **RMB 8,571 thousand**, compared to a total comprehensive income of **RMB 10,130 thousand** in the prior year period | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Loss/Profit for the Period | (8,571) | 10,130 | | Other Comprehensive Income | — | — | | Total Comprehensive Loss/Income for the Period | (8,571) | 10,130 | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and total equity both decreased, with a corresponding reduction in total liabilities | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Assets | 867,085 | 982,297 | | Total Equity | 637,203 | 695,832 | | Total Liabilities | 229,882 | 286,465 | [Condensed Consolidated Interim Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity decreased due to the loss for the period and cash dividend payments | Equity Item | Balance as of January 1, 2025 (RMB '000) | Loss for the Period (RMB '000) | Cash Dividends (RMB '000) | Balance as of June 30, 2025 (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 695,832 | (8,571) | (51,095) | 637,203 | [Condensed Consolidated Interim Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) During the reporting period, net cash from operating activities significantly increased, but investing activities shifted from net inflow to net outflow, and cash outflow from financing activities increased, resulting in a net decrease in cash and cash equivalents | Cash Flow Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 28,655 | 11,469 | | Net Cash (Used in)/Generated from Investing Activities | (172) | 18,262 | | Net Cash Used in Financing Activities | (51,767) | (48,462) | | Net Decrease in Cash and Cash Equivalents | (23,284) | (18,731) | [Notes to the Interim Financial Information](index=8&type=section&id=II.%20Notes%20to%20the%20Interim%20Financial%20Information) [1. General Information](index=8&type=section&id=1.%20General%20Information) Pacific Online Limited is incorporated in the Cayman Islands, primarily engaged in internet advertising services in China, with shares listed on the Hong Kong Stock Exchange, and its interim financial information is presented in RMB and approved for publication by the Board - The Company is incorporated in the Cayman Islands and primarily provides internet advertising services in China[13](index=13&type=chunk)[14](index=14&type=chunk) - The Company's shares have been listed on The Stock Exchange of Hong Kong Limited since December 18, 2007[15](index=15&type=chunk) - The interim financial information is presented in RMB and was approved for issue by the Board of Directors on August 27, 2025[16](index=16&type=chunk)[17](index=17&type=chunk) [2. Basis of Preparation and Accounting Policies](index=8&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and should be read in conjunction with the annual financial report and company announcements - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[18](index=18&type=chunk) - The interim financial information should be read in conjunction with the annual report for the year ended December 31, 2024, and any announcements made by the Company during the interim reporting period[18](index=18&type=chunk) [3. Accounting Policies](index=8&type=section&id=3.%20Accounting%20Policies) Except for income tax estimates and newly effective HKFRS amendments, accounting policies for the current period are consistent with the prior year, with no significant impact from new standard amendments on the Group's financial statements - The accounting policies applied are consistent with those described in the financial statements for the year ended December 31, 2024, except for the estimation of income tax based on the applicable tax rate for the expected annual total profit and the adoption of amendments to Hong Kong Financial Reporting Standards effective for the financial year ending December 31, 2025[19](index=19&type=chunk) - New standards, amendments to existing standards, and interpretations effective for the financial year beginning January 1, 2025, have had no significant impact on the Group's financial statements[19](index=19&type=chunk) [4. Segment Information](index=8&type=section&id=4.%20Segment%20Information) The Group primarily provides internet advertising services, with operating segments categorized by different internet portals (PCauto, PConline, and others), and all revenue is derived from customers in China - The reportable operating segments are PCauto, PConline, and others[21](index=21&type=chunk) - All of the Group's revenue is derived from customers in China, and most non-current assets (excluding club memberships and investments in financial assets classified as intangible assets) are located in China[24](index=24&type=chunk)[25](index=25&type=chunk) [Timing of Revenue Recognition](index=9&type=section&id=Timing%20of%20Revenue%20Recognition) The Group's revenue is primarily recognized over time, with PCauto and PConline being the main revenue sources | Timing of Revenue Recognition | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | — Over time | 206,956 | 198,642 | | — At a point in time | 65,904 | 77,736 | | **Revenue** | **272,860** | **276,378** | [Revenue from Major Customers](index=9&type=section&id=Revenue%20from%20Major%20Customers) In H1 2025, Customer A contributed **20%** of total revenue, while Customer B's contribution was less than **10%**, indicating a decrease in major customer concentration | Customer | H1 2025 Revenue Contribution | H1 2024 Revenue Contribution | | :--- | :--- | :--- | | Customer A | 20% | 21% | | Customer B | * (Less than 10%) | 10% | [5. Other Income](index=10&type=section&id=5.%20Other%20Income) Other income decreased year-on-year in H1 2025, primarily due to the absence of additional input VAT deductions during the period, though dividend income from financial asset investments increased | Other Income Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Rental income | 3,145 | 3,870 | | Government grants | 196 | 1,997 | | Additional input VAT deductions | — | 3,596 | | Dividend income from investments in financial assets | 2,240 | — | | **Total** | **5,581** | **9,463** | [6. Net Finance Income](index=10&type=section&id=6.%20Net%20Finance%20Income) Net finance income decreased year-on-year in H1 2025, primarily due to lower interest income and net foreign exchange losses | Finance Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Finance income — Interest income | 1,161 | 2,225 | | Finance costs — Interest expense on lease liabilities | (18) | (1) | | Finance costs — Net foreign exchange losses | (174) | (946) | | **Net Finance Income** | **969** | **1,278** | [7. Income Tax Expense](index=11&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense decreased year-on-year in H1 2025, primarily due to deferred tax contributions, with the company's operating subsidiaries in China enjoying a **15%** preferential tax rate as high-tech enterprises | Income Tax Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax in China | 2 | 56 | | Deferred tax | 1,111 | 1,520 | | **Total** | **1,113** | **1,576** | - The Company's operating subsidiaries in China (e.g., Guangzhou Pacific Computer) enjoy a **15%** preferential tax rate as high-tech enterprises[31](index=31&type=chunk) - Eligible Hong Kong indirect holding companies may use a lower withholding tax rate of **5%**[31](index=31&type=chunk) [8. Loss/Profit Per Share](index=12&type=section&id=8.%20Loss%2FProfit%20Per%20Share) In H1 2025, the company's basic and diluted loss per share was **0.76 RMB cents**, compared to a profit of **0.89 RMB cents** in the prior year period, primarily due to the net loss for the period [Basic Loss/Profit Per Share](index=12&type=section&id=Basic%20Loss%2FProfit%20Per%20Share) Based on the loss attributable to owners of the Company and the weighted average number of ordinary shares, the basic loss per share for H1 2025 was **0.76 RMB cents** | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss/Profit Attributable to Owners of the Company (RMB '000) | (8,571) | 10,130 | | Weighted Average Number of Ordinary Shares ('000 shares) | 1,133,795 | 1,134,030 | | **Basic Loss/Profit Per Share (RMB cents)** | **(0.76) cents** | **0.89 cents** | [Diluted Loss/Profit Per Share](index=12&type=section&id=Diluted%20Loss%2FProfit%20Per%20Share) Diluted loss per share is equal to basic loss per share as there were no outstanding potentially dilutive share options during the reporting period - For the six months ended June 30, 2025, and 2024, diluted loss/profit per share was equal to basic loss/profit per share, as there were no outstanding potentially dilutive share options[34](index=34&type=chunk) [9. Dividends](index=12&type=section&id=9.%20Dividends) In 2025, the company paid a final dividend of **RMB 51,102 thousand** related to 2024, and the Board does not recommend an interim dividend for H1 2025 - A final dividend of **RMB 4.5 cents** per ordinary share for 2024, totaling **RMB 51,102,000**, was paid in 2025[35](index=35&type=chunk) - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025[35](index=35&type=chunk) [10. Property and Equipment, Investment Properties, Intangible Assets and Right-of-Use Assets](index=13&type=section&id=10.%20Property%20and%20Equipment%2C%20Investment%20Properties%2C%20Intangible%20Assets%20and%20Right-of-Use%20Assets) As of June 30, 2025, the net book values of various non-current assets showed slight changes, with property and equipment, investment properties, and intangible assets decreasing, while right-of-use assets slightly increased | Asset Category | Net Book Value as of June 30, 2025 (RMB '000) | Net Book Value as of January 1, 2025 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Right-of-use assets | 10,313 | 9,875 | +438 | | Property and equipment | 158,599 | 160,553 | -1,954 | | Investment properties | 51,622 | 52,552 | -930 | | Intangible assets | 8,777 | 9,004 | -227 | [11. Deferred Income Tax Assets](index=13&type=section&id=11.%20Deferred%20Income%20Tax%20Assets) As of June 30, 2025, total deferred income tax assets decreased, primarily influenced by changes in impairment allowance for financial assets and accrued advertising and other expenses | Deferred Income Tax Assets | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | — Recoverable within 12 months | 2,857 | 3,530 | | — Recoverable after 12 months | 26,430 | 26,868 | | **Total** | **29,287** | **30,398** | - Credited to/(charged from) the condensed consolidated interim statement of profit or loss during the period: **RMB (1,111) thousand**[38](index=38&type=chunk) [12. Trade and Bills Receivables, Other Receivables and Prepayments](index=14&type=section&id=12.%20Trade%20and%20Bills%20Receivables%2C%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, the total of trade and bills receivables, other receivables, and prepayments significantly decreased, primarily due to a reduction in trade and bills receivables | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables, net of impairment allowance | 307,751 | 341,959 | | Bills receivable, net of impairment allowance | 17,823 | 73,911 | | Other receivables, net of impairment allowance | 7,972 | 7,742 | | Prepaid VAT | 5,087 | 5,890 | | Prepayments to suppliers | 1,056 | 1,331 | | **Total** | **339,689** | **430,833** | [Trade Receivables, Net of Impairment Allowance](index=15&type=section&id=Trade%20Receivables%2C%20Net%20of%20Impairment%20Allowance) As of June 30, 2025, total trade receivables decreased, with an impairment allowance reversal, and credit terms generally range from three to twelve months | Aging | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Current to 6 months | 257,154 | 288,597 | | 6 months to 1 year | 43,909 | 47,534 | | 1 to 2 years | 6,643 | 5,785 | | Over 2 years | 45 | 43 | | **Total** | **307,751** | **341,959** | - The impairment allowance for trade receivables was **RMB 108,071 thousand** at period-end, with a reversal of **RMB 1,707 thousand** during the period[40](index=40&type=chunk) [Other Receivables](index=15&type=section&id=Other%20Receivables) As of June 30, 2025, other receivables slightly increased, primarily comprising advances to employees, rental receivables, and other amounts | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Advances to employees | 4,549 | 4,244 | | Rental receivables | 134 | 268 | | Others | 3,289 | 3,230 | | **Total** | **7,972** | **7,742** | [13. Investments in Financial Assets](index=16&type=section&id=13.%20Investments%20in%20Financial%20Assets) As of June 30, 2025, the fair value of the company's investments in financial assets in private equity funds increased, with the equity interest rising to **18.18%** - The Group holds approximately **18.18%** equity interest in the fund (December 31, 2024: **15.72%**)[42](index=42&type=chunk) | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Beginning balance | 25,594 | 31,106 | | Fair value changes | 3,174 | (4,182) | | Redemptions | — | (1,372) | | **Ending balance** | **28,768** | **25,552** | [14. Ordinary Shares](index=17&type=section&id=14.%20Ordinary%20Shares) As of June 30, 2025, the total number of ordinary shares issued by the company remained unchanged, but the number of shares held under the share award scheme significantly decreased - As of June 30, 2025, the total number of ordinary shares issued by the Company was **1,135,597,667**, which was the same as on December 31, 2024[44](index=44&type=chunk) - The number of shares held under the share award scheme decreased from **2,440,000** as of December 31, 2024, to **160,000** as of June 30, 2025[44](index=44&type=chunk) [15. Accrued Expenses and Other Payables](index=17&type=section&id=15.%20Accrued%20Expenses%20and%20Other%20Payables) As of June 30, 2025, the total of accrued expenses and other payables significantly decreased, primarily due to a reduction in accrued expenses and salaries payable | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Accrued expenses | 147,217 | 181,534 | | Salaries payable | 33,304 | 43,744 | | Other payables | 7,063 | 7,488 | | Other taxes payable | 7,422 | 17,492 | | **Total** | **195,006** | **250,258** | - Accrued expenses primarily refer to accrued service commission fees payable to advertising agencies, outsourcing production costs, and advertising expenses[45](index=45&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=III.%20Management%20Discussion%20and%20Analysis) [Overall Performance](index=18&type=section&id=Overall%20Performance) Total revenue for H1 2025 decreased by **1.3%** year-on-year, but increased outsourcing production costs led to reduced gross profit, shifting the company from a net profit to a net loss compared to the prior year period. The company is investing in new interactive models to counter the decline of traditional advertising and optimize cost management - Total revenue for the first half of the year was approximately **RMB 272.9 million**, a year-on-year decrease of **1.3%**[46](index=46&type=chunk) - Loss attributable to owners of the Company was **RMB 8.6 million**, compared to a net profit of **RMB 10.1 million** in the corresponding period of 2024[46](index=46&type=chunk) - The decrease in gross profit was primarily due to increased outsourcing production costs[46](index=46&type=chunk) - The Company has invested in developing new interactive models to create more content-driven advertisements and establish market differentiation[46](index=46&type=chunk) [Revenue Analysis](index=18&type=section&id=Revenue%20Analysis) The Group's total revenue decreased by **1.3%** year-on-year, primarily due to a decline in PCauto revenue, while PConline revenue significantly grew boosted by national subsidy policies, and other business revenue decreased due to a downturn in home improvement market consumption - Revenue decreased by **1.3%** from **RMB 276.4 million** for the six months ended June 30, 2024, to **RMB 272.9 million** for the six months ended June 30, 2025[48](index=48&type=chunk) [PCauto](index=18&type=section&id=PCauto) PCauto revenue decreased by **5.4%** year-on-year, primarily due to reduced advertising spending by automakers driven by domestic EV price competition. The company is seeking growth through new products, AI-SAAS toolkits, and online-to-offline activities - PCauto revenue decreased by **5.4%** year-on-year to **RMB 224.1 million**, accounting for **82.1%** of the Group's total revenue[47](index=47&type=chunk)[48](index=48&type=chunk) - The decrease in revenue was primarily due to reduced advertising spending by automakers, influenced by domestic electric vehicle price competition[47](index=47&type=chunk)[48](index=48&type=chunk) - The Company is expanding its AI-SAAS toolkit focused on the automotive industry and continues to focus on online-to-offline activities to provide authentic content and build brand awareness[47](index=47&type=chunk) [PConline](index=18&type=section&id=PConline) PConline revenue significantly increased by **54.9%** year-on-year, primarily benefiting from national subsidy policies boosting the consumer electronics industry, which encouraged manufacturers to increase advertising spending - PConline revenue increased by **54.9%** year-on-year to **RMB 43.6 million**, accounting for **16.0%** of the Group's total revenue[47](index=47&type=chunk)[48](index=48&type=chunk) - The increase in revenue was due to increased demand from consumer electronics manufacturers, boosted by national subsidy policies[47](index=47&type=chunk)[48](index=48&type=chunk) [Other Operating Businesses](index=19&type=section&id=Other%20Operating%20Businesses) Revenue from other operating businesses decreased by **54.5%** year-on-year, primarily due to an overall decline in home improvement market consumption - Revenue from other operating businesses decreased by **54.5%** from **RMB 11.4 million** to **RMB 5.2 million**, accounting for **1.9%** of the Group's total revenue[49](index=49&type=chunk) - The decrease in revenue was primarily due to an overall decline in home improvement market consumption[49](index=49&type=chunk) [Cost and Expense Analysis](index=19&type=section&id=Cost%20and%20Expense%20Analysis) During the reporting period, cost of revenue and product development expenses increased, while selling and marketing expenses decreased, and administrative expenses slightly rose [Cost of Revenue](index=19&type=section&id=Cost%20of%20Revenue) Cost of revenue increased by **12.6%** year-on-year, primarily due to increased outsourcing production costs, leading to a decrease in gross profit margin from **38.2%** to **29.5%** - Cost of revenue increased by **12.6%** from **RMB 170.9 million** to **RMB 192.5 million**[50](index=50&type=chunk) - Primarily due to increased outsourcing production costs, the gross profit margin decreased from **38.2%** to **29.5%**[50](index=50&type=chunk) [Selling and Marketing Expenses](index=19&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses decreased by **3.4%** year-on-year, primarily due to reduced advertising expenses during the period - Selling and marketing expenses decreased by **3.4%** from **RMB 53.7 million** to **RMB 51.8 million**[51](index=51&type=chunk) - The decrease was primarily due to reduced advertising expenses during the period[51](index=51&type=chunk) [Administrative Expenses](index=20&type=section&id=Administrative%20Expenses) Administrative expenses increased by **5.6%** year-on-year, primarily due to increased staff costs during the period - Administrative expenses increased by **5.6%** from **RMB 27.9 million** to **RMB 29.5 million**[52](index=52&type=chunk) - Primarily due to increased staff costs during the period[52](index=52&type=chunk) [Product Development Expenses](index=20&type=section&id=Product%20Development%20Expenses) Product development expenses increased by **22.0%** year-on-year, primarily due to increased staff costs and general expenses for the R&D team - Product development expenses increased by **22.0%** from **RMB 16.2 million** to **RMB 19.7 million**[53](index=53&type=chunk) - Primarily due to increased staff costs and general expenses for the Group's R&D team[53](index=53&type=chunk) [Analysis of Other Financial Items](index=20&type=section&id=Analysis%20of%20Other%20Financial%20Items) During the reporting period, impairment losses on financial assets shifted from provision to reversal, other income and net finance income decreased, other gains turned from losses to gains, and income tax expense decreased, ultimately resulting in a net loss [Net Reversal/(Provision) for Impairment Losses on Financial Assets](index=20&type=section&id=Net%20Reversal%2F%28Provision%29%20for%20Impairment%20Losses%20on%20Financial%20Assets) In H1 2025, impairment losses on financial assets shifted from provision to a net reversal of **RMB 3,500 thousand**, primarily due to the recovery of trade and bills receivables and reduced provisions - Net reversal for impairment losses on financial assets for the six months ended June 30, 2025, was **RMB 3.5 million**, compared to a net provision of **RMB 4.5 million** in the corresponding period of 2024[54](index=54&type=chunk) - The net reversal for impairment losses on financial assets was primarily due to the recovery of trade and bills receivables and reduced provisions during the period[54](index=54&type=chunk) [Other Income](index=20&type=section&id=Other%20Income) Other income decreased year-on-year in H1 2025, primarily due to the absence of additional input VAT deductions during the period - Other income for the six months ended June 30, 2025, was **RMB 5.6 million**, compared to **RMB 9.5 million** in the corresponding period of 2024[55](index=55&type=chunk) - The decrease was due to the absence of additional input VAT deductions during the period[55](index=55&type=chunk) [Net Other Gains/(Losses)](index=20&type=section&id=Net%20Other%20Gains%2F%28Losses%29) Net other gains for H1 2025 amounted to **RMB 3,200 thousand**, compared to a loss of **RMB 2,200 thousand** in the prior year period, primarily benefiting from fair value changes in private equity funds - Other gains for the six months ended June 30, 2025, were **RMB 3.2 million**, compared to other losses of **RMB 2.2 million** in the corresponding period of 2024[56](index=56&type=chunk) - The gain was primarily due to fair value changes in the fund[56](index=56&type=chunk) [Net Finance Income](index=20&type=section&id=Net%20Finance%20Income) Net finance income decreased year-on-year in H1 2025, primarily due to lower interest income - Net finance income for the six months ended June 30, 2025, was **RMB 1.0 million**, compared to **RMB 1.3 million** in the corresponding period of 2024[57](index=57&type=chunk) - The decrease was primarily due to lower interest income during the period[57](index=57&type=chunk) [Income Tax Expense](index=20&type=section&id=Income%20Tax%20Expense) Income tax expense decreased by **29.4%** year-on-year in H1 2025 - Income tax expense decreased by **29.4%** from **RMB 1.6 million** to **RMB 1.1 million**[58](index=58&type=chunk) [Net (Loss)/Profit Attributable to Owners of the Company](index=21&type=section&id=Net%20%28Loss%29%2FProfit%20Attributable%20to%20Owners%20of%20the%20Company) In H1 2025, the company shifted from a net profit in the prior year period to a net loss of **RMB 8,600 thousand** - Net loss attributable to owners of the Company for the six months ended June 30, 2025, was **RMB 8.6 million**, compared to a net profit of **RMB 10.1 million** in the corresponding period of 2024[59](index=59&type=chunk) [Liquidity and Financial Resources](index=21&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the company's cash and cash equivalents decreased, primarily due to cash dividend payments, with no external debt - As of June 30, 2025, the Group had cash and cash equivalents totaling **RMB 240.0 million**, compared to **RMB 263.5 million** as of December 31, 2024[60](index=60&type=chunk) - The decrease in cash was primarily due to cash dividend payments totaling **RMB 51.1 million** for the six months ended June 30, 2025[60](index=60&type=chunk) - As of December 31, 2024, and June 30, 2025, the Company had no external debt[60](index=60&type=chunk) [Bank Borrowings](index=21&type=section&id=Bank%20Borrowings) As of June 30, 2025, the company had no bank borrowings, resulting in a gearing ratio of zero - As of June 30, 2025, the Group had no bank borrowings, and therefore, its gearing ratio (total bank borrowings to shareholders' equity) was zero[61](index=61&type=chunk) [Significant Acquisitions and Disposals](index=21&type=section&id=Significant%20Acquisitions%20and%20Disposals) In H1 2025, the company did not undertake any significant acquisitions or disposals of subsidiaries and associates - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries and associates[62](index=62&type=chunk) [Pledge of Assets](index=21&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the company had not pledged any assets to secure bank financing - As of June 30, 2025, the Group had not pledged bank deposits or other assets to secure its bank financing[63](index=63&type=chunk) [Foreign Exchange Risk](index=21&type=section&id=Foreign%20Exchange%20Risk) The company's operating activities are primarily conducted and settled in RMB in mainland China, thus the overall foreign exchange risk is not significant - The Group's operating activities are primarily conducted in mainland China, with most transactions denominated and settled in RMB[64](index=64&type=chunk) - The overall foreign exchange risk is considered not significant[64](index=64&type=chunk) [Employees and Remuneration Information](index=21&type=section&id=Employees%20and%20Remuneration%20Information) As of June 30, 2025, the company's employee count slightly decreased, and operations were optimized through internal restructuring and process simplification, with remuneration determined by performance and qualifications - As of June 30, 2025, the Group had **731** employees (December 31, 2024: **733**), a **0.3%** decrease in H1 2025[65](index=65&type=chunk) - The Group continues to advance its internal restructuring and streamline its support operations[65](index=65&type=chunk) - The Group determines employee remuneration based on factors such as performance and qualifications[65](index=65&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=IV.%20Corporate%20Governance%20and%20Other%20Information) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) In H1 2025, neither the company nor its subsidiaries purchased, redeemed, or sold any of its listed securities, nor did it hold any treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[66](index=66&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[67](index=67&type=chunk) [Audit Committee](index=22&type=section&id=Audit%20Committee) The company's Audit Committee comprises four independent non-executive directors, responsible for reviewing accounting principles, audit, risk management, internal controls, and financial reporting matters, and has reviewed these interim results - The Company's Audit Committee comprises all four independent non-executive Directors of the Company[68](index=68&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed matters related to audit, risk management, internal controls, and financial reporting, including the review of these interim results[68](index=68&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) As of June 30, 2025, the company complied with the Stock Exchange's Corporate Governance Code, though the roles of Chairman and Chief Executive Officer are not separated, with Dr. Lam Wai Yan holding both positions, which the Board believes benefits the Group's business - For the six months ended June 30, 2025, the Company has complied with the code provisions set out in the Corporate Governance Code contained in Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange[69](index=69&type=chunk) - Code Provision C.2.1 stipulates that the roles of Chairman and Chief Executive Officer should be separate, but Dr. Lam Wai Yan currently holds both positions as Chairman and Chief Executive Officer of the Company[69](index=69&type=chunk) - The Board believes that this structure provides strong and consistent leadership for the Group, leading to more efficient and effective business planning and decision-making, as well as in executing long-term business strategies, which is beneficial to the Group's business prospects[69](index=69&type=chunk) [Acknowledgements](index=22&type=section&id=Acknowledgements) The Chairman of the Board, on behalf of the Board, extends sincere gratitude to all employees and shareholders - The Chairman of the Board, on behalf of the Board, extends sincere gratitude to all employees who have contributed to the Group and all shareholders who have continuously supported the Group[70](index=70&type=chunk) [Board of Directors](index=23&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises three executive directors and four independent non-executive directors - The Board includes three executive directors: Dr. Lam Wai Yan, Mr. Ho Kam Wah, and Mr. Wang Da Xin[71](index=71&type=chunk) - The Board includes four independent non-executive directors: Mr. Tsui Yiu Wah, Mr. Pak Tai Tak, Mr. Lam Wai Hon, and Ms. Li Kit Ying[71](index=71&type=chunk)

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 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 告 全 部 或 任 何 部 分 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。 香港科技探索有限公司 Hong Kong Technology Venture Company Limited （股份代號：1137） （根據公司條例於香港註冊成立之有限公司） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 集 團 財 務 摘 要 香 港 電 子 商 貿 業 務 摘 要 新 探 索 及 科 技 業 務 摘 要 – 1 – 1. 二 零 二 五 年 對 香 港 零 售 業 而 言 仍 然 是 充 滿 挑 戰 的 一 年。本 集 團 香 港 電 子 商 貿 業 務採取審慎策略，以降低對銷售表現的影響，並提升成本效益，儘管面臨不利條件， 但 本 集 團 香 港 電 子 商 貿 ...

[Company Information and Announcements](index=1&type=section&id=Company%20Information%20and%20Announcements) This section provides an overview of the company's identity and its interim results announcement [Company Overview](index=1&type=section&id=Company%20Overview) This section introduces Tan Chong International Limited, its Bermuda incorporation, and its stock code 693 on the Hong Kong Stock Exchange - Company Name: **Tan Chong International Limited** - Place of Incorporation: **Bermuda** - Stock Code: **693** [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) This announcement presents the unaudited interim results of Tan Chong International Limited and its subsidiaries for the six months ended June 30, 2025 - Announcement Content: Unaudited consolidated interim results for the six months ended June 30, 2025[3](index=3&type=chunk) [Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial performance and position for the interim period [Consolidated Statement of Profit or Loss](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement reports key financial metrics including revenue, cost of sales, gross profit, operating profit, profit before tax, and profit for the period, showing significant profit growth compared to 2024 Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,507,897 | 6,589,126 | -1.23% | | Cost of sales | (5,280,452) | (5,287,082) | -0.13% | | Gross profit | 1,227,445 | 1,302,044 | -5.73% | | Operating profit | 329,768 | 242,711 | +35.86% | | Profit before tax | 234,270 | 140,133 | +67.18% | | Profit for the period | 107,713 | 28,018 | +284.44% | | Attributable to equity holders of the Company | 11,683 | (35,904) | N/A | | Basic and diluted earnings/(loss) per share (HK Cents) | 0.58 | (1.78) | N/A | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement discloses profit for the period and other comprehensive income, including revaluation of defined benefit plans, fair value changes in equity investments, and foreign currency translation differences, showing a shift from loss to profit in total comprehensive income Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Profit for the period | 107,713 | 28,018 | +284.44% | | Net change in fair value reserve (non-recyclable) | (37,153) | 261,887 | N/A | | Exchange differences on translation of financial statements of overseas subsidiaries | 716,249 | (498,131) | N/A | | Other comprehensive income for the period | 684,736 | (218,175) | N/A | | Total comprehensive income for the period | 792,449 | (190,157) | N/A | | Attributable to equity holders of the Company | 589,615 | (133,125) | N/A | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement provides the assets, liabilities, and equity as of June 30, 2025, and December 31, 2024, detailing the composition and changes in non-current assets, current assets, current liabilities, non-current liabilities, and total equity, indicating an increase in net assets Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 15,447,489 | 14,400,824 | +7.27% | | Current assets | 9,611,228 | 9,279,428 | +3.57% | | Current liabilities | 8,636,242 | 7,713,866 | +11.96% | | Net current assets | 974,986 | 1,565,562 | -37.73% | | Non-current liabilities | 3,588,305 | 3,797,682 | -5.51% | | Net assets | 12,834,170 | 12,168,704 | +5.47% | | Total equity attributable to equity holders of the Company | 11,532,534 | 11,052,672 | +4.34% | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and breakdowns of the figures presented in the consolidated financial statements [Basis of Preparation and Changes in Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) This section outlines that the interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, noting the application of IAS 21 (Revised) with no significant impact on the report - Basis of Preparation: Hong Kong Stock Exchange Listing Rules and International Accounting Standard 34 "Interim Financial Reporting"[7](index=7&type=chunk) - Accounting Policies: Consistent with those adopted in the 2024 annual financial statements, except for changes expected to be reflected in the 2025 annual financial statements[7](index=7&type=chunk) - Changes in Accounting Policies: Application of IAS 21 (Revised), "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," issued by IASB, which has no significant impact on this report[8](index=8&type=chunk) [Revenue and Segment Reporting](index=6&type=section&id=Revenue%20and%20Segment%20Reporting) This section details the group's revenue classification by major product/service lines and customer geographical markets, provides performance data for each reportable segment, and reconciles segment profit or loss to consolidated profit before tax - Revenue Definition: Sales value of goods sold, services provided to customers, rental income, interest income from loans and advances, management service fees, agency commissions and fees, and warranty income[10](index=10&type=chunk) - Primary Revenue Sources: **Services provided** (HKD **4,374,302 thousand**) and **sales of goods** (HKD **1,616,714 thousand**)[10](index=10&type=chunk) - Primary Geographical Market: **Japan** (HKD **4,167,682 thousand**)[10](index=10&type=chunk) - Segment EBITDA: **Transportation business** contributed the most, at HKD **416,402 thousand**[13](index=13&type=chunk) [Revenue Classification](index=6&type=section&id=Revenue%20Classification) Revenue is classified by major product or service lines (e.g., sales of goods, services provided, agency commissions) and customer geographical markets (e.g., Singapore, China, Japan), showing various income sources and regional contributions Revenue Classification (For the six months ended June 30) | Revenue Source | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Sales of goods | 1,616,714 | 1,961,688 | -17.59% | | Services provided | 4,374,302 | 4,117,640 | +6.23% | | Agency commissions and fees | 25,672 | 19,257 | +33.31% | | Warranty income | 1,620 | 1,079 | +50.14% | | Fixed rental income from investment properties | 67,399 | 62,230 | +8.31% | | Interest income from loans and advances | 237,987 | 229,025 | +3.91% | | Motor vehicle rental income | 184,203 | 198,207 | -7.07% | | **Total Revenue** | **6,507,897** | **6,589,126** | **-1.23%** | Revenue by Customer Geographical Market (For the six months ended June 30) | Geographical Market | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Singapore | 1,109,908 | 1,082,869 | +2.50% | | People's Republic of China | 187,228 | 280,248 | -33.19% | | Thailand | 225,597 | 162,074 | +39.20% | | Japan | 4,167,682 | 3,870,477 | +7.68% | | Taiwan | 336,782 | 472,820 | -28.78% | | Other regions | 480,700 | 720,638 | -33.30% | | **Total Revenue** | **6,507,897** | **6,589,126** | **-1.23%** | [Segment Results](index=7&type=section&id=Segment%20Results) This section provides revenue and EBITDA for reportable segments including motor vehicle distribution, heavy commercial and industrial equipment, property rental and development, transportation, and other businesses, highlighting the contribution of each segment, with transportation business having the largest EBITDA Segment Results (For the six months ended June 30) | Segment | 2025 Revenue (HKD Thousand) | 2024 Revenue (HKD Thousand) | 2025 EBITDA (HKD Thousand) | 2024 EBITDA (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Motor vehicle distribution and dealership business | 1,678,097 | 1,968,761 | (87,886) | (30,462) | | Heavy commercial vehicle and industrial equipment distribution and dealership business | 59,218 | 63,178 | 5,331 | 1,041 | | Property rental and development | 58,870 | 55,654 | 86,326 | 43,932 | | Transportation business | 4,167,682 | 3,870,477 | 416,402 | 340,343 | | Other businesses | 544,030 | 631,056 | 253,461 | 228,639 | | **Total** | **6,507,897** | **6,589,126** | **673,634** | **583,493** | [Reconciliation of Reportable Segment Profit or Loss](index=8&type=section&id=Reconciliation%20of%20Reportable%20Segment%20Profit%20or%20Loss) This section reconciles the total EBITDA of each segment with depreciation and amortization, interest income, finance costs, and share of profit of associates, to arrive at the consolidated profit before tax Reconciliation of Segment Profit or Loss (For the six months ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Total segment EBITDA | 673,634 | 583,493 | | Depreciation and amortization | (356,653) | (354,693) | | Interest income | 12,787 | 13,911 | | Finance costs | (96,042) | (103,172) | | Share of profit of associates | 544 | 594 | | **Consolidated profit before tax** | **234,270** | **140,133** | [Profit Before Tax](index=8&type=section&id=Profit%20Before%20Tax) This section discloses the components of profit before tax, including finance costs, depreciation, amortization of intangible assets, dividend income, and gain on disposal of property, plant and equipment Profit Before Tax Components (For the six months ended June 30) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Finance costs | 96,042 | 103,172 | | Depreciation - owner-occupied property, plant and equipment | 198,774 | 202,003 | | Depreciation - right-of-use assets | 146,074 | 142,510 | | Amortization of intangible assets | 11,805 | 10,180 | | Dividend income | (38,373) | (29,597) | | Gain on disposal of property, plant and equipment | (5,817) | (2,735) | [Income Tax Expense](index=8&type=section&id=Income%20Tax%20Expense) This section analyzes the distribution of income tax expense by region (Hong Kong, Singapore, other regions) and explains the group's applicable weighted average tax rates Income Tax Expense (For the six months ended June 30) | Region | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Hong Kong | 784 | 318 | | Singapore | 22,478 | 29,472 | | Other regions | 103,295 | 82,325 | | **Total** | **126,557** | **112,115** | - The Group's applicable tax rates primarily range between **16.5% and 31.52%**[16](index=16&type=chunk) [Dividends](index=8&type=section&id=Dividends) This section discloses the interim dividend declared for the six months ended June 30, 2025, at HKD 0.02 per ordinary share, totaling HKD 40,266,000, consistent with the prior year Interim Dividends Declared (For the six months ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Dividend per ordinary share | 0.02 HKD | 0.02 HKD | | Total dividend | 40,266 | 40,266 | [Earnings/(Loss) Per Share](index=9&type=section&id=Earnings%2F(Loss)%20Per%20Share) This section explains the calculation of basic earnings per share, based on profit attributable to equity holders and the number of ordinary shares outstanding, noting that diluted earnings per share is the same as basic due to no dilutive securities - **Basic earnings per share** for 2025: **0.58 HK Cents** (based on profit of HKD 11,683,000)[18](index=18&type=chunk) - **Basic loss per share** for 2024: **(1.78) HK Cents** (based on loss of HKD 35,904,000)[18](index=18&type=chunk) - Number of ordinary shares outstanding: **2,013,309,000 shares**[18](index=18&type=chunk) - Diluted earnings/(loss) per share is the same as basic earnings/(loss) per share, as there were no dilutive securities issued during the period[18](index=18&type=chunk) [Investments Accounted for at Fair Value Through Other Comprehensive Income](index=9&type=section&id=Investments%20Accounted%20for%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) This section discloses the group's investments accounted for at fair value through other comprehensive income, primarily comprising listed and unlisted equity securities outside Hong Kong, with the strategic investment in Subaru Corporation recording an unrealized loss this period Investments Accounted for at Fair Value Through Other Comprehensive Income (As of June 30) | Investment Type | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Listed equity securities outside Hong Kong | 1,607,299 | 1,641,277 | | Unlisted equity securities | 7,545 | 6,828 | | **Total** | **1,614,844** | **1,648,105** | - Investment in **Subaru Corporation**: **HKD 1,563,661 thousand** (as of June 30, 2025), representing **1.5%** of issued shares and **6.2%** of the Group's total assets at cost[20](index=20&type=chunk) - A fair value **loss of HKD 35,622 thousand** was recognized in the first half of 2025, compared to a **gain of HKD 257,442 thousand** in the same period of 2024[20](index=20&type=chunk) [Trade Receivables](index=10&type=section&id=Trade%20Receivables) This section provides an aging analysis of trade receivables as of the reporting date, showing amounts across different aging bands, and notes the Group's credit period ranges from 7 days to 6 months Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 984,713 | 741,504 | | 31 to 90 days | 172,728 | 189,297 | | Over 90 days | 13,145 | 17,589 | | **Total** | **1,170,586** | **948,390** | - The Group's permitted credit period ranges from **7 days to 6 months**[22](index=22&type=chunk) [Trade Payables](index=10&type=section&id=Trade%20Payables) This section provides an aging analysis of trade payables as of the reporting date, showing amounts across different aging bands Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 726,455 | 581,726 | | 31 to 90 days | 204,599 | 121,246 | | 91 to 180 days | 58,566 | 42,118 | | Over 180 days | 111,441 | 99,326 | | **Total** | **1,101,061** | **844,416** | [Share-based Payments](index=10&type=section&id=Share-based%20Payments) This section details the Group's two share compensation schemes (2015 and 2022 Schemes), including their operation, grant terms, point movements, fair value assumptions, and related expenses [2015 Scheme](index=10&type=section&id=2015%20Scheme) This section describes the 2015 share compensation scheme, managed by an independent trustee, which awards share points based on performance to eligible directors, senior executives, and auditors, disclosing total points granted and fair value estimates - Scheme Nature: A performance-based share compensation scheme managed by a trustee independent of the Group[24](index=24&type=chunk) - Points Granted: As of June 30, 2025, selected participants were granted a total of **475,520 points**[26](index=26&type=chunk) - Point Movement: Unconverted points at period-end were **185,000 points** for both 2025 and 2024[28](index=28&type=chunk) - Fair Value Estimation: Using the Black-Scholes model, the fair value of points on July 1, 2024, was **JPY 1,636**[30](index=30&type=chunk) - Expense: For the six months ended June 30, 2025, the Group recognized a net share-based equity-settled payment expense of **HKD 130,000** related to the 2015 Scheme[31](index=31&type=chunk) [2022 Scheme](index=12&type=section&id=2022%20Scheme) This section describes the 2022 share compensation scheme, also managed by an independent trustee, which awards share points to eligible directors and employees, with some convertible to cash, disclosing total points granted, movements, and fair value estimates - Scheme Nature: A performance-based share compensation scheme managed by a trustee independent of the Group, with some points convertible to cash at prevailing market prices[32](index=32&type=chunk) - Points Granted: As of June 30, 2025, a total of **105,200 points** were granted for the equity-settled portion, and **25,300 points** for the cash-settled portion[33](index=33&type=chunk) - Point Movement: Unconverted cash-settled points at period-end were **19,300 points** for both 2025 and 2024[35](index=35&type=chunk) - Fair Value Estimation: Using the Black-Scholes model, the fair value of points on October 1, 2024, was **JPY 1,948**[37](index=37&type=chunk) - Expense: For the six months ended June 30, 2025, net equity-settled expense was **HKD 1,736,000**, and net cash-settled expense was **HKD 683,000**[38](index=38&type=chunk) [Management Review and Outlook](index=14&type=section&id=Management%20Review%20and%20Outlook) This section provides management's analysis of the company's performance during the period and its strategic outlook for the future [Interim Dividend Declaration and Register of Members](index=14&type=section&id=Interim%20Dividend%20Declaration%20and%20Register%20of%20Members) The Board declared an interim ordinary dividend of HKD 0.02 per share, totaling HKD 40,266,000, and announced the payment date and closure period for the register of members - Interim Dividend: **HKD 0.02 per share**, totaling **HKD 40,266,000**[39](index=39&type=chunk) - Payment Date: **September 24, 2025**[39](index=39&type=chunk) - Register of Members Closed: From **September 11, 2025, to September 12, 2025**[40](index=40&type=chunk) [Performance Overview](index=14&type=section&id=Performance%20Overview) The Group's revenue slightly declined by 1% in H1 2025, but profit after tax surged by 284%, EBITDA rose by 15%, and operating profit margin improved to 5.1%, driven by stringent cost control and operational efficiency, with improved net gearing and net asset value per share - Revenue: **HKD 6.51 billion**, a slight **1% decline** compared to the same period in 2024[41](index=41&type=chunk) - Profit After Tax: **HKD 107.7 million**, a significant **284% increase** from HKD 28 million in the same period of 2024[41](index=41&type=chunk) - EBITDA: Increased by **15%** to **HKD 673.6 million** in the first half of 2025[41](index=41&type=chunk) - Operating Profit Margin: Improved to **5.1%** (3.7% in the same period of 2024)[41](index=41&type=chunk) - Cost Control: **Administrative expenses decreased by 11%**, and **distribution costs decreased by 29%** (excluding ZERO and ETHOZ Group)[41](index=41&type=chunk) - Net Gearing Ratio: **49.3%** (as of June 30, 2025)[42](index=42&type=chunk) - Net Asset Value Per Share: **HKD 6.37** (as of June 30, 2025), an increase from HKD 6.04 at the end of December 2024[44](index=44&type=chunk) [Significant Investments](index=15&type=section&id=Significant%20Investments) As of June 30, 2025, the Group held HKD 1.61 billion in fair value investments, primarily strategic listed and unlisted equity securities, recording an unrealized loss of HKD 37 million this period, compared to a gain of HKD 262 million in the prior year - Total Fair Value Investments: **HKD 1.61 billion** (as of June 30, 2025)[46](index=46&type=chunk) - Investment Composition: Primarily **equity securities listed on the Tokyo Stock Exchange**, representing strategic investments accumulated over many years[46](index=46&type=chunk) - Unrealized Fair Value Change: A **loss of HKD 37 million** was recorded in the first half of 2025, compared to a **gain of HKD 262 million** in the same period of 2024[46](index=46&type=chunk) [Regional Market Performance](index=15&type=section&id=Regional%20Market%20Performance) This section provides a detailed review of the Group's business performance in key regional markets including Singapore, China, Taiwan, Philippines, Malaysia, Thailand, Vietnam, Cambodia, and Japan, covering sales, challenges, and strategic plans for brands like Nissan, Subaru, ETHOZ, and ZERO [Singapore Market](index=15&type=section&id=Singapore%20Market) Singapore's TIV grew by 28%, but Nissan passenger and commercial vehicle sales declined due to reduced emission scheme incentives; Subaru business achieved a significant 181% growth, outperforming the market, with plans to launch new hybrid models - Total Industry Volume (TIV): Increased by **28%** in the first half of 2025 (**29%** for passenger vehicles, **22%** for commercial vehicles)[47](index=47&type=chunk) - Nissan Passenger Vehicle Sales: **Decreased by 26%** year-on-year, primarily due to reduced incentives for A2-category passenger vehicles under the Vehicle Emissions Scheme (VES)[48](index=48&type=chunk) - Nissan Commercial Van Sales: **Decreased by 8%** year-on-year, affected by the cancellation of Commercial Vehicle Emissions Scheme (CVES) incentives and the termination of the early turnover scheme[48](index=48&type=chunk) - Nissan Outlook: New Townstar EV and upgraded Serena e-POWER are expected to launch in the second half, aiming for growth in both commercial and passenger vehicle markets[49](index=49&type=chunk) - Subaru Business: Achieved **181% growth** in the first half of 2025, outperforming the TIV growth for the same period[50](index=50&type=chunk) - Subaru Outlook: The new **Forester E-Boxer** strong hybrid vehicle is expected to launch in the second half of 2025[50](index=50&type=chunk) [ETHOZ Group](index=16&type=section&id=ETHOZ%20Group) ETHOZ Group's total revenue declined by 2.4% in the first half, mainly due to reduced vehicle leasing and sales, but net profit grew by 10% driven by increased interest income. The Group remains optimistic about the full-year outlook and confident in its core business's long-term potential - Total Revenue: **Decreased by 2.4%** to **HKD 445.4 million** compared to the same period in 2024[51](index=51&type=chunk) - Net Profit: **Increased by 10%** compared to the same period in 2024[51](index=51&type=chunk) - Reason for Revenue Decline: Primarily due to **reduced vehicle leasing income and vehicle sales**, offset by an **increase in interest income**[51](index=51&type=chunk) - Outlook: Remains **optimistic about the full-year outlook**, relying on the strength and resilience of its core businesses for growth[51](index=51&type=chunk) [China Market](index=16&type=section&id=China%20Market) Hong Kong Subaru sales declined by 13% but market share increased; mainland China Subaru dealership sales dropped by 43% amid fierce competition, yet the Group is optimistic about the new Forester launch in the second half - Hong Kong Subaru Business: Sales **decreased by 13%** in the first half of 2025 compared to the same period in 2024, but successfully **increased Subaru's market share** (TIV decreased by 23% in the same period)[52](index=52&type=chunk) - Mainland China Subaru Dealership Business: Sales **decreased by 43%** in the first half of 2025 compared to the same period in 2024, continuously facing intense brand competition[52](index=52&type=chunk) - Outlook: The Group remains **optimistic about the launch of the new Forester** in the second half for both Hong Kong and mainland China markets[52](index=52&type=chunk) [Taiwan and Philippines Markets](index=16&type=section&id=Taiwan%20and%20Philippines%20Markets) Taiwan Subaru sales declined by 36% due to trade tariffs, economic confidence, and aging models; Philippines Subaru sales dropped by 64% due to NEV tax incentives and new market entrants. Both markets anticipate improved performance in the second half with the new Forester E-Boxer - Taiwan Subaru Business: Sales **decreased by 36%** in the first half of 2025 compared to the same period in 2024, affected by uncertain US trade tariff situation, declining economic confidence, and an aging model lineup[53](index=53&type=chunk) - Philippines Subaru Business: Sales **decreased by 64%** in the first half of 2025 compared to the same period in 2024, impacted by new brands entering the market attracted by New Energy Vehicle (NEV) tax incentives[53](index=53&type=chunk) - Outlook: Both Taiwan and Philippines markets anticipate improved prospects in the second half with the launch of the new **Forester E-Boxer** strong hybrid[53](index=53&type=chunk) - Philippines: Committed to continuous improvement and expansion of its dealership network, opening a **Subaru Pampanga dealership** in Angeles City, Luzon, in June 2025[53](index=53&type=chunk) [Malaysia, Thailand, Vietnam, and Cambodia Markets](index=16&type=section&id=Malaysia%2C%20Thailand%2C%20Vietnam%2C%20and%20Cambodia%20Markets) The Group is transitioning these markets from Completely Knocked Down (CKD) to Completely Built Up (CBU) imports from Japan. Malaysia and Vietnam Subaru sales declined, Thailand Subaru sales grew by 100%, and Cambodia sales were flat but market share increased. All markets are optimistic or cautiously optimistic about the CBU launch of the new Forester - Strategic Transformation: The Group is transitioning markets like Malaysia, Thailand, Vietnam, and Cambodia from Completely Knocked Down (CKD) to Completely Built Up (CBU) imports from Japan[54](index=54&type=chunk) - Malaysia Subaru: Sales **decreased by 37%** in the first half of 2025 compared to the same period in 2024, affected by market normalization, US trade tariffs, and petrol subsidy adjustments[54](index=54&type=chunk) - Thailand Subaru: Achieved a strong **100% year-on-year sales growth** in the first half of 2025, despite TIV recovery being impacted by high household debt levels[55](index=55&type=chunk) - Vietnam Subaru: Sales **decreased by 40%** in the first half of 2025 compared to the same period in 2024, with a slow start[55](index=55&type=chunk) - Cambodia Subaru: Recorded **zero growth** in the first half of 2025, but successfully **increased Subaru's market share** (TIV decreased by 20% in the same period)[55](index=55&type=chunk) - Outlook: All markets will formally advance the CBU transition with the launch of the new Forester, maintaining an **optimistic or cautiously optimistic outlook** for the second half[54](index=54&type=chunk)[55](index=55&type=chunk) [Japan Market (ZERO Group)](index=17&type=section&id=Japan%20Market%20(ZERO%20Group)) ZERO Group's first-half revenue grew by 8% to HKD 4.2 billion, with net profit after tax up 36%, driven by expanded domestic automotive and HR businesses, a one-off compensation, and improved used car export profitability. The Group will continue to optimize its business structure and cost control to sustain profitability - Revenue: Recorded an **8% increase** in revenue to **HKD 4.2 billion** in the first half of 2025[56](index=56&type=chunk) - Net Profit After Tax: **Increased by 36%** in the first half of 2025 compared to the same period last year[56](index=56&type=chunk) - Reasons for Growth: Primarily benefited from the **expansion of domestic automotive-related businesses and human resources businesses**, a **one-off compensation** received for the Kawasaki Integrated Logistics Center fire, and **improved profitability in used car export business**[56](index=56&type=chunk) - Outlook: ZERO Group will continue to **optimize its vehicle transportation business structure**, implement measures to **enhance efficiency**, drive **gross profit-focused sales activities**, **streamline business processes**, and **reduce operating costs** to maintain profitability[56](index=56&type=chunk) [Hire Purchase and Financing Business](index=17&type=section&id=Hire%20Purchase%20and%20Financing%20Business) The Group provides hire purchase, finance lease, and commercial loan services, primarily to SMEs. This section details net receivables, customer distribution, aging analysis, loan terms, and stringent risk management and impairment assessment policies for various loan types [Business Types and Customer Distribution](index=17&type=section&id=Business%20Types%20and%20Customer%20Distribution) The Group's hire purchase and finance lease businesses primarily involve motor vehicles, office automation, and IT equipment across Singapore, China, and Malaysia, with HKD 2.7 billion in net receivables, mainly from SMEs. Commercial loans total HKD 3.2 billion, predominantly secured, provided to Singaporean clients - Net Hire Purchase and Finance Lease Receivables: **HKD 2.7 billion**, representing **45%** of total loans and advances[58](index=58&type=chunk) - Hire Purchase and Finance Lease Customer Distribution: **Singapore 11%, China 87%, Malaysia 2%**, totaling **7,845 customers**, of which **96% are SMEs**[58](index=58&type=chunk) - Total Commercial Loans: **HKD 3.2 billion**, representing **55%** of total loans and advances, provided to only **561 Singaporean customers**[59](index=59&type=chunk) - Commercial Loan Type: **97% are secured commercial loans**[59](index=59&type=chunk) [Key Loan Approval Terms](index=18&type=section&id=Key%20Loan%20Approval%20Terms) Hire purchase and finance lease terms range from 1 to 8 years with annual interest rates of 2.48% to 12%; commercial loan credit periods are 1 to 3 years with annual interest rates of 6% to 9% - Hire Purchase and Finance Lease Term: Ranging from **1 to 8 years**, with annual interest rates from **2.48% to 12%**[60](index=60&type=chunk) - Commercial Loan Credit Period: **1 to 3 years**, with annual interest rates from **6% to 9%**[61](index=61&type=chunk) [Risk Management Policy](index=18&type=section&id=Risk%20Management%20Policy) The Group has established comprehensive risk management policies to identify, analyze, and control credit risk, encompassing stringent credit approval processes (e.g., KYC, AML, qualitative and quantitative assessments) and credit monitoring measures (e.g., regular loan portfolio reviews, customer follow-ups) - Risk Management Objective: To identify and analyze risks faced by the Group, establish appropriate risk limits and control measures, and monitor risks and compliance with these limits[62](index=62&type=chunk) - Credit Approval: Conducts screening checks ("Know Your Customer," "Anti-Money Laundering," and "Countering the Financing of Terrorism") and submits credit proposals for review by the Credit Risk Department[63](index=63&type=chunk) - Assessment Factors: The credit approval team considers both **quantitative** (balance sheet assessment, profit and loss assessment, financial ratio assessment, etc.) and **qualitative** (business model/operating model, management team/owner profile, and risk appetite, etc.) factors[65](index=65&type=chunk) - Credit Enhancement: Specifically for commercial loan businesses, credit enhancement is obtained through corporate guarantees/personal guarantees/vendor buy-back guarantees and/or property collateral[65](index=65&type=chunk) - Credit Monitoring: Regular review of loan portfolios, with the Credit Management Department responsible for customer follow-ups, including daily calls, review of auto-debit rejection cases, monthly collection rate report reviews, and site visits[68](index=68&type=chunk)[72](index=72&type=chunk) [Loan Impairment Policy and Assessment](index=19&type=section&id=Loan%20Impairment%20Policy%20and%20Assessment) The Group regularly assesses financial assets for credit impairment, recognizing impairment when adverse events affect future cash flows. Impairment assessment involves reviewing non-performing and outstanding loans, with a provision of HKD 50.4 million made for loans and advances and finance leases - Impairment Assessment: At each reporting date, the Group assesses whether financial assets carried at amortized cost have experienced credit impairment[69](index=69&type=chunk) - Evidence of Credit Impairment: Includes significant financial difficulty of the borrower, default (e.g., overdue for more than 90 days), the Group restructuring the loan, or the borrower likely entering bankruptcy[72](index=72&type=chunk) - Impairment Provision: As of June 30, 2025, an impairment provision of **HKD 50.4 million** has been made for loans and advances and finance leases[70](index=70&type=chunk) - Bad Debt Write-offs: Bad debt write-offs were **less than 0.1%** in the first half of 2025[70](index=70&type=chunk) [Outlook](index=19&type=section&id=Outlook) The Group anticipates a continuously complex and volatile global economic environment, and will continue to strengthen cost control and operational efficiency. ETHOZ Group's independent listing plan has been postponed, but the Group remains confident in its fundamentals and long-term growth potential, aiming for sustainable growth with prudence and discipline - Global Economic Outlook: The global economic environment is expected to remain **complex and volatile**, with geopolitical tensions and market fluctuations continuously impacting operating conditions[71](index=71&type=chunk) - Group Strategy: Will enter the second half of 2025 with a **robust and resilient stance**, having implemented various measures to **strengthen cost control and enhance operational efficiency**[71](index=71&type=chunk) - ETHOZ Group Independent Listing: Following a comprehensive market assessment, the Group has decided to **postpone the advancement of this plan**, prioritizing timing and value creation[71](index=71&type=chunk) - Group Confidence: With years of experience in navigating economic cycles, the Group remains **confident in its ability to adapt to market changes** and consistently achieve sustainable long-term performance[71](index=71&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers additional corporate governance details, including share transactions, audit committee review, corporate governance code compliance, and board composition [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[73](index=73&type=chunk) - As of June 30, 2025, the Company held no treasury shares[73](index=73&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Audit Committee, in conjunction with management, has reviewed the Group's unaudited consolidated interim financial report for the six months ended June 30, 2025 - The Audit Committee, together with management, has reviewed the Group's unaudited consolidated interim financial report for the six months ended June 30, 2025[74](index=74&type=chunk) [Corporate Governance Code](index=20&type=section&id=Corporate%20Governance%20Code) The Board found no information indicating any breach of the Corporate Governance Code under Appendix C1 of the HKEX Listing Rules. Non-executive and independent non-executive directors have no fixed terms but are subject to retirement by rotation and re-election, with emphasis on the Chairman's role in leadership continuity and decision execution - The Company's Directors are not aware of any information that might indicate a breach of the Corporate Governance Code as set out in Appendix C1 of the HKEX Listing Rules at any time during the six months ended June 30, 2025[75](index=75&type=chunk) - The Company's non-executive and independent non-executive Directors do not have specific terms of appointment but are subject to retirement by rotation and re-election at the Company's annual general meeting in accordance with the Company's Bye-laws[75](index=75&type=chunk) - The Board believes that the current structure facilitates **strong leadership continuity**, enabling the Group to execute decisions quickly and effectively[75](index=75&type=chunk) [Board Directive and List of Directors](index=20&type=section&id=Board%20Directive%20and%20List%20of%20Directors) The announcement was issued by Ms. Sun Shu Fa, Finance Director, on behalf of the Board, and lists the executive and independent non-executive directors as of the announcement date - The announcement was issued by **Ms. Sun Shu Fa, Finance Director**, on behalf of the Board[76](index=76&type=chunk) - Executive Directors include **Mr. Glenn Tan Eng Soon, Mr. Tan Keng Leong, Mr. Tan Keng Loke, Ms. Sun Shu Fa, Ms. Tan Siew Ling, and Mr. Lee Sze Yick**[76](index=76&type=chunk) - Independent Non-executive Directors include **Mr. Ng Kim Tuck, Mr. Azman Bin Badrillah, Mr. Prechaya Ebrahim, Mr. Teo Ek Kee, and Mr. Tay Ka Chye**[76](index=76&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Sinco Pharmaceuticals Holdings Limited 興科蓉醫藥控股有限公司 （根 據 開 曼 群 島 法 例 註 冊 成 立 的 有 限 公 司） （股 份 代 號：6833） 截 至2025年6月30日止六個月的 中期業績公告 財務摘要 – 2 – 中期簡明綜合財務狀況表 2025年6月30日 | | | | | | | | | | | | | | | | | 2025年 | | | 2024年 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | 6月30日 | ...

I. [Company Information and Declarations](index=1&type=section&id=I.%20Company%20Information%20and%20Declarations) 1.1 [Company Overview and GEM Characteristics](index=1&type=section&id=1.1%20Company%20Overview%20and%20GEM%20Characteristics) This section outlines Omnibridge Holdings Limited's basic information, its GEM listing on the HKEX, and the inherent high investment risks for small and medium-sized companies in this market - The company's name is Omnibridge Holdings Limited, stock code 8462, incorporated in the Cayman Islands[2](index=2&type=chunk) - The GEM market provides a listing platform for small and medium-sized companies, entailing higher investment risks, potential for significant market volatility, and no guarantee of high liquidity[3](index=3&type=chunk) 1.2 [Directors' Responsibility Statement](index=1&type=section&id=1.2%20Directors'%20Responsibility%20Statement) The Board confirms that the information in this interim results announcement is accurate, complete, and free from misleading or fraudulent content, assuming collective and individual responsibility - The directors collectively and individually assume full responsibility for the interim results announcement, confirming the information is accurate, complete, and free from misleading or fraudulent content[4](index=4&type=chunk) II. [Unaudited Condensed Consolidated Interim Financial Statements](index=2&type=section&id=II.%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) 2.1 [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue and profit for the period significantly decreased year-on-year, primarily due to reduced service costs, other income, and staff costs, leading to a substantial drop in earnings per share Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (SGD '000) | Metric | Six Months Ended June 30, 2025 (SGD '000) | Six Months Ended June 30, 2024 (SGD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 23,588 | 25,699 | -8.2% | | Cost of services | (21,911) | (23,589) | -7.1% | | Gross profit | 1,677 | 2,110 | -20.5% | | Other income | 781 | 2,738 | -71.5% | | Staff costs | (1,497) | (2,086) | -28.3% | | Operating profit | 154 | 2,038 | -92.4% | | Profit before tax | 142 | 2,020 | -93.0% | | Profit for the period | 85 | 1,654 | -94.9% | | Basic and diluted earnings per share (SGD cents) | 0.01 | 0.28 | -96.4% | 2.2 [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's non-current assets and current liabilities both decreased, while net current assets slightly increased, indicating a relatively stable financial structure Key Data from Condensed Consolidated Statement of Financial Position (SGD '000) | Metric | June 30, 2025 (SGD '000) | December 31, 2024 (SGD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 461 | 729 | -36.8% | | Current assets | 28,608 | 30,656 | -6.7% | | Current liabilities | 5,387 | 7,554 | -28.7% | | Net current assets | 23,221 | 23,102 | +0.5% | | Total assets less current liabilities | 23,682 | 23,831 | -0.6% | | Non-current liabilities | 113 | 325 | -65.2% | | Net assets | 23,569 | 23,506 | +0.3% | 2.3 [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity slightly increased, primarily due to profit for the period, though exchange differences from overseas operations reduced exchange reserves Key Data from Condensed Consolidated Statement of Changes in Equity (SGD '000) | Metric | January 1, 2025 (Audited) | Profit for the period | Other comprehensive loss for the period | June 30, 2025 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | | Share capital | 1,053 | – | – | 1,053 | | Share premium | 10,715 | – | – | 10,715 | | Other reserves | 1,650 | – | – | 1,650 | | Exchange reserve | (149) | – | (22) | (171) | | Retained earnings | 10,237 | 85 | – | 10,322 | | **Total** | **23,506** | **85** | **(22)** | **23,569** | 2.4 [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=2.4%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly decreased, leading to a net decrease in cash and cash equivalents, while investing cash flow remained stable and financing cash outflow reduced Key Data from Condensed Consolidated Statement of Cash Flows (SGD '000) | Metric | Six Months Ended June 30, 2025 (SGD '000) | Six Months Ended June 30, 2024 (SGD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 58 | 2,950 | -98.0% | | Net cash from investing activities | 112 | 111 | +0.9% | | Net cash used in financing activities | (180) | (266) | -32.3% | | Net (decrease) / increase in cash and cash equivalents | (10) | 2,795 | -100.4% | | Cash and cash equivalents at end of period | 20,035 | 17,862 | +12.2% | III. [Notes to the Financial Statements](index=9&type=section&id=III.%20Notes%20to%20the%20Financial%20Statements) 3.1 [General Information](index=9&type=section&id=3.1%20General%20Information) This section outlines Omnibridge Holdings Limited's registration, listing information, primary business (human resources outsourcing and recruitment services), and ultimate controlling parties - The company is incorporated in the Cayman Islands, with shares listed on the GEM board of the Hong Kong Stock Exchange on July 17, 2017[13](index=13&type=chunk) - The Group primarily engages in providing human resources outsourcing services and human resources recruitment services[14](index=14&type=chunk) - The ultimate holding company is Omnipartners Holdings Limited, and the ultimate controlling parties are Executive Directors Mr. Chow Chi Kin and Ms. Hung Yu Hon[13](index=13&type=chunk) 3.2 [Basis of Preparation and Accounting Policies](index=9&type=section&id=3.2%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The financial statements are prepared under the historical cost convention, in compliance with International Financial Reporting Standards, with accounting policies consistent with the prior year and no material impact from newly adopted standards - The financial statements are prepared under the historical cost convention and comply with International Financial Reporting Standards[15](index=15&type=chunk) - The accounting policies adopted for the financial information for the six months ended June 30, 2025, are consistent with those used in the audited financial statements for the year ended December 31, 2024[15](index=15&type=chunk)[18](index=18&type=chunk) - The amendments to IAS 21 "Lack of Exchangeability" have been adopted but have no material impact on the financial position and performance[18](index=18&type=chunk) 3.3 [Segment Information and Major Customers](index=11&type=section&id=3.3%20Segment%20Information%20and%20Major%20Customers) The Group does not present operating and geographical segment information due to integrated resources and most operations being in Singapore; in H1 2025, one customer contributed over 10% of revenue, compared to three in H1 2024 - The Group does not present operating segment information as resources are integrated, and no separate financial data for independent operating segments is available[20](index=20&type=chunk) - The Group's majority of operations and assets and liabilities are located in Singapore, thus no geographical segment information is presented[20](index=20&type=chunk) Major Customers Contributing Over 10% of Revenue (SGD '000) | Customer | Six Months Ended June 30, 2025 (SGD '000) | Six Months Ended June 30, 2024 (SGD '000) | | :--- | :--- | :--- | | Customer A | 4,580 | 4,149 | | Customer B | Not applicable | 2,610 | | Customer C | Not applicable | 2,542 | 3.4 [Revenue and Other Income Analysis](index=12&type=section&id=3.4%20Revenue%20and%20Other%20Income%20Analysis) In H1 2025, the Group's revenue from human resources outsourcing services decreased year-on-year, and human resources recruitment services revenue also significantly declined, while other income, primarily government grants, saw a substantial year-on-year reduction Revenue Components (SGD '000) | Revenue Source | Six Months Ended June 30, 2025 (SGD '000) | Six Months Ended June 30, 2024 (SGD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Human resources outsourcing services | 23,286 | 25,144 | -7.4% | | Human resources recruitment services | 236 | 498 | -52.6% | | Other human resources support services | 66 | 57 | +15.8% | | **Total Revenue** | **23,588** | **25,699** | **-8.2%** | Other Income Components (SGD '000) | Other Income Source | Six Months Ended June 30, 2025 (SGD '000) | Six Months Ended June 30, 2024 (SGD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Operational support income | 82 | – | N/A | | Interest income | 72 | 54 | +33.3% | | Dividend income | 71 | 66 | +7.6% | | Government grants | 556 | 2,618 | -78.8% | | **Total Other Income** | **781** | **2,738** | **-71.5%** | 3.5 [Components of Profit Before Tax](index=13&type=section&id=3.5%20Components%20of%20Profit%20Before%20Tax) Profit before tax is primarily influenced by cost of services and staff costs; in H1 2025, both categories, including salaries, bonuses, and defined contribution retirement plans, decreased, reflecting cost control efforts Cost of Services Components (SGD '000) | Cost Item | Six Months Ended June 30, 2025 (SGD '000) | Six Months Ended June 30, 2024 (SGD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Salaries and bonuses | 18,265 | 20,238 | -9.7% | | Defined contribution retirement plans | 2,570 | 2,537 | +1.3% | | Other employee-related expenses | 1,076 | 814 | +32.2% | | **Total Cost of Services** | **21,911** | **23,589** | **-7.1%** | Total Staff Costs (SGD '000) | Cost Item | Six Months Ended June 30, 2025 (SGD '000) | Six Months Ended June 30, 2024 (SGD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Directors' emoluments | 330 | 298 | +10.7% | | Other staff costs | 1,167 | 1,788 | -34.7% | | **Total Staff Costs** | **23,408** | **25,675** | **-8.7%** | 3.6 [Income Tax Expense](index=13&type=section&id=3.6%20Income%20Tax%20Expense) The Group is exempt from income tax in the Cayman Islands and BVI, and Hong Kong generated no taxable profit; Singapore income tax is calculated at 17%, with a significant year-on-year decrease in H1 2025 primarily due to reduced government grants - The Group is not subject to income tax in the Cayman Islands and the British Virgin Islands, and no taxable profit was generated in Hong Kong[27](index=27&type=chunk) - The statutory income tax rate in Singapore is **17%**, and all income tax expense relates to the profits of Singapore subsidiaries[28](index=28&type=chunk) Income Tax Expense (SGD '000) | Metric | Six Months Ended June 30, 2025 (SGD '000) | Six Months Ended June 30, 2024 (SGD '000) | | :--- | :--- | :--- | | Current tax – Singapore | 57 | 366 | 3.7 [Earnings Per Share](index=14&type=section&id=3.7%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share significantly decreased to **0.01 SGD cents**, primarily due to a substantial reduction in profit for the period Earnings Per Share (SGD cents) | Metric | Six Months Ended June 30, 2025 (SGD cents) | Six Months Ended June 30, 2024 (SGD cents) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 0.01 | 0.28 | - Basic earnings per share are calculated based on profit for the period attributable to owners of the company of **SGD 85,000** (2024: SGD 1,654,000) and a weighted average of **600,000,000** ordinary shares[32](index=32&type=chunk) 3.8 [Changes in Assets](index=15&type=section&id=3.8%20Changes%20in%20Assets) In H1 2025, the Group purchased plant and equipment totaling approximately **SGD 18,000** and made no acquisitions of property, plant, and equipment, indicating minimal capital expenditure - For the six months ended June 30, 2025, the Group purchased plant and equipment with a total cost of approximately **SGD 18,000**[33](index=33&type=chunk) - No property, plant, and equipment items were acquired during the reporting period[33](index=33&type=chunk) 3.9 [Trade and Other Receivables](index=15&type=section&id=3.9%20Trade%20and%20Other%20Receivables) As of June 30, 2025, both trade receivables and prepayments, deposits, and other receivables decreased, with government grant receivables reduced to zero, indicating improved accounts receivable management Trade Receivables (SGD '000) | Metric | June 30, 2025 (SGD '000) | December 31, 2024 (SGD '000) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 5,082 | 6,410 | Prepayments, Deposits and Other Receivables (SGD '000) | Metric | June 30, 2025 (SGD '000) | December 31, 2024 (SGD '000) | | :--- | :--- | :--- | | Prepayments, deposits and other receivables (net of allowance) | 330 | 1,026 | | Of which, government grant receivables | – | 530 | - Trade receivables are generally granted credit terms of **30 to 60 days**[34](index=34&type=chunk) 3.10 [Other Financial Assets and Liabilities](index=16&type=section&id=3.10%20Other%20Financial%20Assets%20and%20Liabilities) The Group holds quoted debt investment funds measured at fair value through profit or loss, with a stable carrying amount, while other payables and accrued expenses, along with contract liabilities, slightly decreased Other Financial Assets (SGD '000) | Metric | June 30, 2025 (SGD '000) | December 31, 2024 (SGD '000) | | :--- | :--- | :--- | | Quoted debt investment funds | 2,411 | 2,399 | Other Payables and Accrued Expenses (SGD '000) | Metric | June 30, 2025 (SGD '000) | December 31, 2024 (SGD '000) | | :--- | :--- | :--- | | Other payables and accrued expenses | 1,610 | 1,715 | | Of which, contract liabilities | 7 | 33 | 3.11 [Share Capital](index=17&type=section&id=3.11%20Share%20Capital) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged, indicating a stable capital structure - The company's authorized share capital is **1,500,000,000** ordinary shares of **HKD 0.01** each[38](index=38&type=chunk) - The issued and fully paid share capital comprises **600,000,000** ordinary shares, valued at **SGD 1,053 thousand**, remaining unchanged from the previous period[38](index=38&type=chunk) 3.12 [Significant Related Party Transactions](index=18&type=section&id=3.12%20Significant%20Related%20Party%20Transactions) The Group has ongoing connected transactions with BGC Malaysia and BGC Outsourcing Malaysia, involving operational support, service support, and outsourcing income, all conducted on mutually agreed terms in the ordinary course of business and exempt from GEM Listing Rules reporting requirements - The Group has ongoing connected transactions with BGC Malaysia and BGC Outsourcing Malaysia, where Mr. Chow Chi Kin is a director and holds partial interests in these companies[39](index=39&type=chunk) - Connected transactions include operational support income, service support income, referral fee expenses, outsourcing income, and nominal employer service fees[39](index=39&type=chunk) - The directors believe these transactions are conducted on mutually agreed terms in the ordinary course of business and are fully exempt from the reporting, announcement, and shareholder approval requirements of the GEM Listing Rules[39](index=39&type=chunk) Key Management Personnel Remuneration (SGD '000) | Remuneration Item | Six Months Ended June 30, 2025 (SGD '000) | Six Months Ended June 30, 2024 (SGD '000) | | :--- | :--- | :--- | | Salaries | 232 | 232 | | Defined contribution retirement plans | 16 | 14 | | Directors' fees | 82 | 52 | | **Total** | **330** | **298** | IV. [Management Discussion and Analysis](index=20&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) 4.1 [Business Review and Prospects](index=20&type=section&id=4.1%20Business%20Review%20and%20Prospects) As a Singaporean human resources service provider, the Group faces a challenging and competitive business environment but is committed to driving revenue growth and maintaining cost-effectiveness by refining business strategies, expanding staffing solutions, and investing in talent and technology - The Group is a human resources service provider in Singapore, primarily offering human resources outsourcing services (including business process outsourcing) and human resources recruitment services[42](index=42&type=chunk) - The business environment in FY2024 was challenging and highly competitive, with a weak Singapore job market facing intense competition, oversupply of talent, and changing regulatory requirements[42](index=42&type=chunk) - The Group is committed to driving revenue growth and maintaining cost-effectiveness by investing in talent development, internal processes, and technology to refine business strategies and expand staffing solutions[42](index=42&type=chunk) 4.2 [Financial Review](index=20&type=section&id=4.2%20Financial%20Review) In H1 2025, the Group's revenue and profit for the period both significantly decreased, primarily due to fewer work orders for HR outsourcing and recruitment services, reduced government grants, and lower staff costs; despite challenges, the company maintains sufficient liquidity and continuously evaluates its investment strategy - Profit for the period in H1 2025 significantly decreased by **93.8%** to **SGD 85,000** year-on-year, primarily due to reduced gross profit and progressive wage credit scheme grants[49](index=49&type=chunk) - As of June 30, 2025, the Group's cash and bank balances were approximately **SGD 20.8 million**, with a current ratio of approximately **5.3 times**, and the Board believes there are sufficient resources to meet financial needs[52](index=52&type=chunk) - The Group holds fixed income fund units measured at fair value through profit or loss, with a carrying amount of approximately **SGD 2.4 million**, aimed at enhancing the return on cash surpluses[57](index=57&type=chunk)[58](index=58&type=chunk) 4.2.1 [Revenue and Cost of Services](index=20&type=section&id=4.2.1%20Revenue%20and%20Cost%20of%20Services) In H1 2025, the Group's revenue decreased by **8.2%** year-on-year to **SGD 23.6 million**, primarily due to fewer work orders for human resources outsourcing and recruitment services, with cost of services also decreasing by **7.2%** - Revenue decreased by **8.2%** from **SGD 25.7 million** in the same period of 2024 to **SGD 23.6 million** in H1 2025[43](index=43&type=chunk) - The decrease in human resources outsourcing services revenue was mainly due to fewer work orders from Singapore government agencies and private sector clients[43](index=43&type=chunk) - Cost of services decreased by **7.2%** year-on-year to **SGD 21.9 million**, consistent with the reduction in revenue[44](index=44&type=chunk) 4.2.2 [Other Income](index=21&type=section&id=4.2.2%20Other%20Income) Other income significantly decreased by **71.5%** year-on-year to **SGD 0.8 million**, mainly because of higher Progressive Wage Credit Scheme grants recognized in FY2024 compared to reduced amounts in FY2025 - Other income decreased by **71.5%** from **SGD 2.7 million** in the same period of 2024 to **SGD 0.8 million** in H1 2025[45](index=45&type=chunk) - The decrease was primarily due to **SGD 2.5 million** in 2022 Progressive Wage Credit Scheme grants recognized in FY2024, compared to an under-recognized amount of approximately **SGD 0.5 million** for 2024 grants in FY2025[45](index=45&type=chunk) 4.2.3 [Staff Costs, Administrative and Other Operating Expenses](index=21&type=section&id=4.2.3%20Staff%20Costs%2C%20Administrative%20and%20Other%20Operating%20Expenses) Staff costs, administrative and other operating expenses decreased by **20.0%** year-on-year to **SGD 2.0 million**, primarily due to a reduction in the number of employees - Staff costs, administrative and other operating expenses decreased by **20.0%** year-on-year to **SGD 2.0 million**[46](index=46&type=chunk) - The decrease was mainly due to a reduction in the number of employees, leading to a decrease in staff costs of approximately **SGD 0.6 million**[46](index=46&type=chunk) 4.2.4 [Depreciation](index=21&type=section&id=4.2.4%20Depreciation) Depreciation expense decreased by **50.0%** year-on-year to **SGD 0.2 million**, primarily due to the early termination of the office lease for right-of-use assets related to a Hong Kong subsidiary - Depreciation expense decreased by **50.0%** year-on-year to **SGD 0.2 million**[47](index=47&type=chunk) - The decrease was mainly due to the early termination of the office lease for right-of-use assets related to a Hong Kong subsidiary[47](index=47&type=chunk) 4.2.5 [Income Tax Expense](index=21&type=section&id=4.2.5%20Income%20Tax%20Expense) Income tax expense significantly decreased by **75.0%** year-on-year to **SGD 57,000**, primarily due to reduced Progressive Wage Credit Scheme grants received in FY2024, which are taxable in the year of receipt - Income tax expense decreased by **75.0%** year-on-year to **SGD 57,000**[48](index=48&type=chunk) - The decrease was mainly due to reduced Progressive Wage Credit Scheme grants received in FY2024, which are taxable in the year of receipt[48](index=48&type=chunk) 4.2.6 [Profit for the Period](index=21&type=section&id=4.2.6%20Profit%20for%20the%20Period) Profit for the period significantly decreased by **93.8%** year-on-year to **SGD 85,000**, primarily due to reduced gross profit and Progressive Wage Credit Scheme grants recognized in FY2025 - Profit for the period decreased by **93.8%** year-on-year to **SGD 85,000**[49](index=49&type=chunk) - The decrease was mainly due to reduced gross profit and Progressive Wage Credit Scheme grants recognized in FY2025[49](index=49&type=chunk) 4.2.7 [Dividends](index=22&type=section&id=4.2.7%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[50](index=50&type=chunk) 4.2.8 [Gearing Ratio](index=22&type=section&id=4.2.8%20Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio decreased to **1.9%**, indicating a reduction in financial leverage - As of June 30, 2025, the gearing ratio (total lease liabilities divided by total equity attributable to owners of the company) was **1.9%** (December 31, 2024: **3.0%**)[51](index=51&type=chunk) 4.2.9 [Liquidity and Financial Resources](index=22&type=section&id=4.2.9%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and bank balances remained stable, with a healthy current ratio, and the Board believes there are sufficient resources to meet financial needs - As of June 30, 2025, cash and bank balances were approximately **SGD 20.8 million**, with a current ratio of approximately **5.3 times**[52](index=52&type=chunk) - The Board is confident that the Group will have sufficient resources to meet its financial needs for business operations[52](index=52&type=chunk) 4.2.10 [Capital Structure](index=22&type=section&id=4.2.10%20Capital%20Structure) The Group funds its operations through internally generated cash flows and capital market fundraising, with its capital structure comprising share capital, share premium, and reserves - The Group funds its operations through internally generated cash flows and fundraising from capital markets[53](index=53&type=chunk) - The capital structure includes capital attributable to equity holders of the company, comprising share capital, share premium, and reserves[53](index=53&type=chunk) 4.2.11 [Employees and Remuneration Policies](index=22&type=section&id=4.2.11%20Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the Group's number of full-time employees decreased to **24**; employee remuneration is determined by performance, qualifications, and experience, with potential for discretionary bonuses - As of June 30, 2025, the Group had **24** full-time employees (excluding contractors), a decrease from **45** as of June 30, 2024[54](index=54&type=chunk) - Employee remuneration is determined by performance, qualifications, and work experience, with eligible employees receiving discretionary bonuses[54](index=54&type=chunk) - Total staff costs for the six months ended June 30, 2025, were approximately **SGD 23.4 million**, a year-on-year decrease[54](index=54&type=chunk) 4.2.12 [Capital Commitments and Contingent Liabilities](index=22&type=section&id=4.2.12%20Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities, indicating controlled financial risk - As of June 30, 2025, the Group had no significant capital commitments[55](index=55&type=chunk) - As of June 30, 2025 and 2024, the Group had no significant contingent liabilities or guarantees[62](index=62&type=chunk) 4.2.13 [Foreign Currency Risk](index=23&type=section&id=4.2.13%20Foreign%20Currency%20Risk) The Group primarily conducts transactions in Singapore Dollars and will review and monitor foreign exchange risks as appropriate - The Group primarily conducts transactions in Singapore Dollars and will review and monitor foreign exchange risks as appropriate[56](index=56&type=chunk) 4.2.14 [Significant Investments and Pledge of Assets](index=23&type=section&id=4.2.14%20Significant%20Investments%20and%20Pledge%20of%20Assets) The Group holds approximately **SGD 2.4 million** in fixed income fund units, aiming to enhance returns on cash surpluses, and has pledged fixed deposits of approximately **SGD 750,000** - The Group holds fixed income fund units measured at fair value through profit or loss, with a carrying amount of approximately **SGD 2.4 million**[57](index=57&type=chunk) - The fixed income fund recorded a net fair value gain of approximately **SGD 12,000**, primarily attributable to the volatility of the AB FCP-American Income Fund[58](index=58&type=chunk) - As of June 30, 2025, the Group pledged fixed deposits of approximately **SGD 750,000**[61](index=61&type=chunk) 4.2.15 [Significant Acquisitions or Disposals](index=25&type=section&id=4.2.15%20Significant%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the company had no other significant acquisitions or disposals of subsidiaries or associated companies - For the six months ended June 30, 2025, there were no other significant acquisitions or disposals of the company's subsidiaries or associated companies[64](index=64&type=chunk) 4.2.16 [Events After Reporting Period](index=25&type=section&id=4.2.16%20Events%20After%20Reporting%20Period) As of the date of this interim results announcement, the Board is not aware of any significant events after the reporting period that require disclosure - As of the date of this interim results announcement, the Board is not aware of any significant events after the reporting period that have occurred and require disclosure[65](index=65&type=chunk) 4.2.17 [Continuing Connected Transactions](index=25&type=section&id=4.2.17%20Continuing%20Connected%20Transactions) Aside from transactions disclosed in Note 15 to the financial statements, there were no other significant continuing connected transactions during this reporting period, and the company has complied with GEM Listing Rules disclosure requirements - Except for those disclosed in Note 15 to the financial statements, there were no other significant continuing connected transactions for the six months ended June 30, 2025[66](index=66&type=chunk) - The company confirms its compliance with the applicable disclosure requirements of Chapter 20 of the GEM Listing Rules[66](index=66&type=chunk) V. [Other Information](index=26&type=section&id=V.%20Other%20Information) 5.1 [Disclosure of Interests](index=26&type=section&id=5.1%20Disclosure%20of%20Interests) This section discloses the interests of directors, chief executives, and substantial shareholders in the company's shares, with Mr. Chow Chi Kin and his spouse Ms. Hung Yu Hon holding a majority interest through controlled corporations and personal holdings 5.1.1 [Directors' and Chief Executive's Interests](index=26&type=section&id=5.1.1%20Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, Executive Director Mr. Chow Chi Kin and his spouse Ms. Hung Yu Hon, through controlled corporations and personal holdings, collectively owned **48.29%** of the company's issued share capital Directors' and Chief Executive's Interests in Shares (Long Position) | Director Name | Capacity/Nature of Interest | Number of Shares Held | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Chow Chi Kin | Interest in controlled corporation | 288,000,000 | 48.00% | | | Beneficial owner | 1,735,000 | 0.29% | | | **Total** | **289,735,000** | **48.29%** | | Ms. Hung Yu Hon | Spouse's interest | 289,735,000 | 48.29% | - Mr. Chow Chi Kin and Ms. Hung Yu Hon are spouses, and each is deemed to have an interest in the shares held by the other[70](index=70&type=chunk) 5.1.2 [Substantial Shareholders' and Other Persons' Interests](index=28&type=section&id=5.1.2%20Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests) Excluding directors, Omnipartners Holdings Limited, as a substantial shareholder, holds **48.00%** of the company's issued share capital, with its equity owned by Mr. Chow Chi Kin and Ms. Hung Yu Hon Substantial Shareholders' Interests in Shares (Long Position) | Name | Capacity/Nature of Interest | Number of Shares Held | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Omnipartners Holdings Limited | Beneficial owner | 288,000,000 | 48.00% | - The entire issued share capital of Omnipartners Holdings Limited is owned **80%** by Mr. Chow Chi Kin and **20%** by Ms. Hung Yu Hon, respectively[72](index=72&type=chunk) 5.2 [Use of Proceeds from Share Offer](index=29&type=section&id=5.2%20Use%20of%20Proceeds%20from%20Share%20Offer) The company raised approximately **HKD 43.4 million** net from its 2017 listing; as of June 30, 2025, **HKD 32.6 million** has been utilized, with the remaining **HKD 10.8 million** expected to be fully utilized by December 31, 2025, primarily for expanding HR services in Singapore and improving IT systems, though delayed by the pandemic - The share offer was completed on July 17, 2017, raising net proceeds of approximately **HKD 43.4 million** (approximately **SGD 7.7 million**)[74](index=74&type=chunk) Use of Proceeds from Share Offer (HKD million) | Planned Use | Planned Amount | Actual Utilized (as of June 30, 2025) | Unutilized Amount | Expected Timeline for Utilizing Remaining Proceeds | | :--- | :--- | :--- | :--- | :--- | | Expand HR outsourcing and recruitment services in Singapore | 23.0 | (13.8) | 9.2 | On or before December 31, 2025 | | Expand HR recruitment services in Hong Kong | 5.0 | (4.4) | 0.6 | On or before December 31, 2025 | | Enhance brand awareness | 5.8 | (5.8) | – | – | | Improve IT systems | 5.5 | (4.5) | 1.0 | On or before December 31, 2025 | | Working capital and other general corporate purposes | 4.1 | (4.1) | – | – | | **Total** | **43.4** | **(32.6)** | **10.8** | | - The timeline for utilizing the unutilized net proceeds was delayed due to the impact of the COVID-19 pandemic and the Omicron variant[78](index=78&type=chunk) - The remaining net proceeds have been placed as interest-bearing deposits with banks in Singapore[76](index=76&type=chunk) 5.3 [Corporate Governance](index=30&type=section&id=5.3%20Corporate%20Governance) The company has adopted and complied with the GEM Listing Rules' Corporate Governance Code, with the Chairman and Chief Executive roles combined, which the Board believes ensures consistent leadership and efficient decision-making; no director securities trading violations, no listed securities purchased, sold, or redeemed, no share options granted, and the Audit Committee has reviewed the financial statements 5.3.1 [Corporate Governance Code](index=30&type=section&id=5.3.1%20Corporate%20Governance%20Code) The company has adopted the GEM Listing Rules' Corporate Governance Code and complied with its provisions during the reporting period, with Mr. Chow Chi Kin serving as both Chairman and Chief Executive, an arrangement the Board believes ensures consistent leadership and efficient decision-making - The company has adopted the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules[77](index=77&type=chunk)[79](index=79&type=chunk) - The roles of Chairman and Chief Executive are combined and held by Mr. Chow Chi Kin, an arrangement the Board believes ensures consistent leadership for the Group and more effective and efficient overall strategic planning[77](index=77&type=chunk) - The Board is satisfied that the company has complied with the code provisions of the Corporate Governance Code for the six months ended June 30, 2025, except for the aforementioned deviation[79](index=79&type=chunk) 5.3.2 [Directors' Securities Transactions](index=31&type=section&id=5.3.2%20Directors'%20Securities%20Transactions) The company has adopted a code of conduct for directors' securities transactions and confirms no non-compliance with the required dealing standards during the reporting period - The company has adopted a code of conduct regarding directors' securities transactions, whose terms are no less stringent than those required by the GEM Listing Rules[80](index=80&type=chunk) - The company is not aware of any non-compliance with the required dealing standards for the six months ended June 30, 2025[80](index=80&type=chunk) 5.3.3 [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=5.3.3%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[81](index=81&type=chunk) 5.3.4 [Share Option Scheme](index=31&type=section&id=5.3.4%20Share%20Option%20Scheme) The company adopted a share option scheme in 2017 to reward employee contributions; as of June 30, 2025, no share options have been granted, and none are outstanding - The company adopted a share option scheme on June 21, 2017, aimed at rewarding employee contributions[82](index=82&type=chunk) - As of June 30, 2025, no share options have been granted since the adoption of the scheme, and no share options are outstanding[83](index=83&type=chunk) 5.3.5 [Audit Committee](index=31&type=section&id=5.3.5%20Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's financial statements and interim results announcement for the six months ended June 30, 2025, deeming them compliant with applicable accounting standards and regulations - The Audit Committee comprises three independent non-executive directors, with Mr. Ong Kian Guan as the committee chairman[85](index=85&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements and this interim results announcement for the six months ended June 30, 2025[85](index=85&type=chunk) - The committee believes the statements and report are prepared in accordance with applicable accounting standards, the GEM Listing Rules, and other relevant legal requirements, with adequate disclosures made[85](index=85&type=chunk) 5.4 [Composition of the Board](index=32&type=section&id=5.4%20Composition%20of%20the%20Board) As of the date of this interim results announcement, the Board of Directors comprises two executive directors (Mr. Chow Chi Kin, Ms. Hung Yu Hon) and three independent non-executive directors (Mr. Ong Kian Guan, Mr. Poon Shui Ho, Mr. Tai Hing Cheung) - As of the date of this interim results announcement, the executive directors are Mr. Chow Chi Kin and Ms. Hung Yu Hon[87](index=87&type=chunk) - The independent non-executive directors are Mr. Ong Kian Guan, Mr. Poon Shui Ho, and Mr. Tai Hing Cheung[87](index=87&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就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。 山東威高集團醫用高分子製品股份有限公 司 Shandong Weigao Group Medical Polymer Company Limited * （在中華人民共和國註冊成立的股份有限公司） （股份代號：1066） 截至二零二五年六月三十日止六個月之 中期業績公佈 概要 山東威高集團醫用高分子製品股份有限公司（「本公司」）及其附屬公司（「本集 團」）截至二零二五年六月三十日止六個月（「期間」），未經審核之收入約人民幣 6,644,048,000元（二零二四年同期：約人民幣6,635,688,000元），較去年同期增長約 0.1%，未經審核之本公司擁有人應佔純利約人民幣1,008,317,000元（二零二四年同 期：約人民幣1,107,549,000元），較去年同期下跌約9.0%。 不計特殊項目的本公司擁有人應佔純利約人民幣967,095,000元，較去年同期可比 數（二零二四年同期：約人民幣1,10 ...