[2025 Interim Results Overview](index=1&type=section&id=2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) The Group's H1 2025 performance saw revenue growth driven by increased sales, despite a significant net loss due to asset impairment and external market challenges [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's revenue increased by 9.3% to US$122.8 million in H1 2025, primarily due to a 26.9% rise in sales volume despite falling iron ore prices; however, shareholder loss expanded to US$102.0 million due to a US$120.2 million impairment of K&S assets from ruble appreciation and other non-recurring items Financial Performance Summary | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 122.8 | 112.3 | 9.3% | | Non-HKFRS Adjusted EBITDA | 6.7 | -1.7 | -485.6% | | K&S Asset Impairment Charge | 120.2 | - | N/A | | Loss Attributable to Shareholders | 102.0 | 13.2 | 670.2% | | Cash and Deposits | 29.9 (Period-end) | 60.7 (Dec 31, 2024) | -50.8% | - Sales volume increased by **26.9%**, partially offsetting the **13.9% decline** in the Platts 65% Fe index price[6](index=6&type=chunk) - Cash cost per tonne decreased to **US$77.4** (down **20.5%** YoY), primarily due to improved Sutara ore quality, lower stripping ratio, and enhanced iron ore recovery[6](index=6&type=chunk) [Operational Highlights](index=1&type=section&id=%E7%87%9F%E9%81%8B%E6%91%98%E8%A6%81) Despite challenging external market conditions, including falling iron ore prices and ruble appreciation, the Group's operational performance significantly improved, driven by the successful commissioning of the Sutara mine, which boosted production and sales volumes and reduced cash costs through higher quality ore and technical enhancements Production and Sales Volume | Indicator | H1 2025 (Thousand tonnes) | H1 2024 (Thousand tonnes) | Change (%) | | :--- | :--- | :--- | :--- | | Production Volume | 1,423 | 1,132 | 25.7% | | Sales Volume | 1,419 | 1,119 | 26.9% | - The successful mining operations at the Sutara mine brought a significant change, with a notable improvement in ore quality, enabling K&S to increase production[5](index=5&type=chunk) - External market conditions, including falling iron ore prices and ruble appreciation, offset some benefits from increased sales volume and led to a non-cash impairment charge for K&S assets[5](index=5&type=chunk) [Consolidated Performance Overview](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) The Group achieved significant increases in iron concentrate production and sales volumes in H1 2025, yet reported a substantial net loss primarily due to asset impairment [Key Operating Data](index=2&type=section&id=%E4%B8%BB%E8%A6%81%E7%87%9F%E9%81%8B%E6%95%B8%E6%93%9A) In H1 2025, iron concentrate production and sales volumes significantly increased to **1,422,870 tonnes** and **1,419,367 tonnes**, respectively; despite a **13.9% drop** in the Platts 65% Fe iron ore average price, cash cost per tonne (including delivery to customers) decreased by **20.5%** to **US$77.4** Key Operating Metrics | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Iron Concentrate Production & Sales Volume (tonnes) | | | | | - Production Volume | 1,422,870 | 1,132,201 | 25.7% | | - Sales Volume | 1,419,367 | 1,118,750 | 26.9% | | Realized Selling Price (USD/tonne) | | | | | - Based on wet metric tonne | 86.5 | 100.0 | (13.5%) | | - Based on dry metric tonne | 93.2 | 107.5 | (13.3%) | | Platts 65% Fe Iron Ore Average Price | 112.5 | 130.7 | (13.9%) | | Cash Cost (USD/tonne) | | | | | - Excluding delivery to customers (wet metric tonne) | 59.9 | 81.9 | (26.9%) | | - Including delivery to customers (wet metric tonne) | 77.4 | 97.4 | (20.5%) | [Consolidated Income Statement](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8%EF%BC%88%E5%8D%83%E7%BE%8E%E5%85%83%EF%BC%89) The Group's revenue increased by **9.3%** to **US$122,798 thousand** in H1 2025; however, due to a **US$126,882 thousand** impairment loss on K&S assets, loss attributable to owners of the Company significantly expanded to **US$101,968 thousand**, a **670.2% increase** from the prior year Consolidated Income Statement Summary | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 122,798 | 112,329 | 9.3% | | Mine Operating Expenses and Service Costs Before Depreciation | (110,391) | (109,308) | 1.0% | | Adjusted EBITDA – Excluding Non-Recurring Items and FX | 6,691 | (1,735) | (485.6%) | | Impairment Loss | (126,882) | – | N/A | | Loss Attributable to Owners of the Company | (101,968) | (13,239) | 670.2% | - Depreciation expenses significantly increased by **58.7%** to **US$8,956 thousand**, reflecting higher production volumes[7](index=7&type=chunk) - Net finance costs decreased by **32.0%** to **US$2,225 thousand**, primarily due to the voluntary early repayment of MIC loans[7](index=7&type=chunk) [Use of Non-HKFRS Measures](index=3&type=section&id=%E4%BD%BF%E7%94%A8%E9%9D%9E%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F) The Group's adjusted EBITDA and underlying loss showed improvement in H1 2025, reflecting better operational performance despite external market headwinds and non-recurring items [Adjusted EBITDA – Excluding Non-Recurring Items and Foreign Exchange](index=3&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4EBITDA%EF%BC%8D%E4%B8%8D%E5%8C%85%E6%8B%AC%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E9%A0%85%E7%9B%AE%E5%8F%8A%E5%A4%96%E5%8C%AF) The Group recorded a positive adjusted EBITDA of **US$6.7 million** in H1 2025, a significant improvement from **negative US$1.7 million** in the prior year, driven by increased production and sales volumes and reduced production costs, which effectively offset the adverse impacts of weak iron ore prices and ruble appreciation Adjusted EBITDA Reconciliation | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss Before Tax (as reported) | (103,478) | (13,054) | | Impairment Loss | 126,882 | – | | Reversal of Accrued Amounts and EPC Contract-Related Payables | (29,883) | – | | Net Foreign Exchange and Derivative Fair Value Changes | 1,989 | 336 | | Depreciation | 8,956 | 5,645 | | Net Finance Costs | 2,225 | 3,273 | | **Adjusted EBITDA** | **6,691** | **(1,735)** | - Significant increase in production and sales volumes: iron concentrate output of **1,422,870 tonnes** (up **25.7%** YoY) and sales of **1,419,367 tonnes** (up **26.9%** YoY)[10](index=10&type=chunk) - Decreased production costs: cash cost per tonne fell by **20.5%** to **US$77.4**, mainly due to improved Sutara ore quality, lower stripping ratio, and enhanced iron ore recovery[11](index=11&type=chunk) [Adjusted Underlying Performance – Excluding Non-Recurring Items and Foreign Exchange](index=4&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4%E5%9F%BA%E6%9C%AC%E6%A5%AD%E7%B8%BE%EF%BC%8D%E4%B8%8D%E5%8C%85%E6%8B%AC%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E9%A0%85%E7%9B%AE%E5%8F%8A%E5%A4%96%E5%8C%AF) The Group reported an adjusted underlying loss of **US$3.0 million** in H1 2025, an improvement from **US$10.8 million** in the prior year, primarily due to enhanced adjusted EBITDA and the exclusion of non-recurring items such as K&S asset impairment, EPC contract settlement gains, and foreign exchange movements Adjusted Underlying Loss Reconciliation | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (as reported) | (101,968) | (13,239) | | Impairment Loss | 126,882 | – | | Reversal of Accrued Amounts and EPC Contract-Related Payables | (29,883) | – | | Net Foreign Exchange and Derivative Fair Value Changes | 1,989 | 336 | | **Adjusted Underlying Loss** | **(2,980)** | **(10,838)** | - K&S mine impairment loss of **US$120.2 million**, primarily due to increased US dollar-denominated expected operating costs resulting from ruble appreciation[12](index=12&type=chunk) - One-off gain of **US$29.9 million** from the reversal of accrued amounts following the amicable resolution of EPC contract disputes[12](index=12&type=chunk) [Revenue and Cost Analysis](index=5&type=section&id=%E6%94%B6%E7%9B%8A%E8%88%87%E6%88%90%E6%9C%AC%E5%88%86%E6%9E%90) Revenue increased due to higher sales volumes from the Sutara mine, while per-tonne cash costs decreased, though external factors like ruble appreciation and tax hikes exerted cost pressure [Iron Concentrate Production, Sales Volume, and Revenue](index=5&type=section&id=%E9%89%84%E7%B2%BE%E7%A4%A6%E7%94%A2%E9%8A%B7%E9%87%8F%E8%88%87%E6%94%B6%E7%9B%8A) In H1 2025, the Group's iron concentrate production and sales volumes significantly increased to **1,422,870 tonnes** (up **25.7%** YoY) and **1,419,367 tonnes** (up **26.9%** YoY), respectively, driven by improved ore quality and operational efficiency from the Sutara mine's commissioning; despite falling iron ore prices, robust sales volume growth boosted total revenue by **9.3%** to **US$122.8 million** - The Sutara mine, operational since July 2024, provides higher quality ore mined at a lower stripping ratio, significantly boosting K&S production and sales volumes and operational efficiency[14](index=14&type=chunk) - In H1 2025, Sutara mine's output accounted for approximately **88%** of total output, with average plant capacity utilization increasing from **72%** in H1 2024 to **90%**[16](index=16&type=chunk) Revenue Performance | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Platts 65% Fe Iron Ore Average Price (USD/tonne) | 112.5 | 130.7 | -13.9% | | K&S Revenue (Million USD) | 122.8 | 112.3 | 9.3% | [Mine Operating Expenses and Service Costs](index=7&type=section&id=%E7%A4%A6%E5%A0%B4%E7%87%9F%E9%81%8B%E9%96%8B%E6%94%AF%E5%8F%8A%E6%9C%8D%E5%8B%99%E6%88%90%E6%9C%AC) Net cash cost per tonne decreased by **20.5%** to **US$77.4** during the period, primarily due to improved ore quality and a lower stripping ratio from Sutara mine operations, leading to a **47.8% reduction** in mining costs; however, Russian inflation, ruble appreciation, and increased mineral extraction tax rates exerted cost pressure Cash Cost Components (per wet metric tonne) | Cost Component | H1 2025 (USD/tonne) | H1 2024 (USD/tonne) | Change (%) | | :--- | :--- | :--- | :--- | | Mining | 23.9 | 45.8 | -47.8% | | Production Fixed Costs, Mine Management & Related Costs | 14.7 | 11.9 | 23.5% | | Mineral Extraction Tax | 8.1 | 3.8 | 113.2% | | Temporary Export Tax | – | 6.5 | -100.0% | | **Net Cash Cost (Including Delivery to Customers)** | **77.4** | **97.4** | **-20.5%** | - Ruble appreciation (87 rubles per US dollar, down **4.4%** YoY) intensified cost inflation pressure, negatively impacting operating margins[29](index=29&type=chunk) - Increased mineral extraction tax rates in 2025 led to a **113.2% rise** in mineral extraction tax[29](index=29&type=chunk) [Financial Performance Details](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E8%A9%B3%E6%83%85) The Group experienced increased administrative expenses and depreciation, reduced net finance costs, and a significant impairment loss, leading to a substantial net loss for the period [General and Administrative Expenses Before Depreciation](index=9&type=section&id=%E6%8A%98%E8%88%8A%E5%89%8D%E4%B8%80%E8%88%AC%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) General and administrative expenses before depreciation increased by **10.2%** to **US$5.6 million** during the period, primarily due to rising staff costs and administrative expenses driven by inflation General and Administrative Expenses | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | General and Administrative Expenses Before Depreciation | 5.6 | 5.1 | 10.2% | [Depreciation](index=9&type=section&id=%E6%8A%98%E8%88%8A) Depreciation expenses significantly increased by **58.7%** to **US$9.0 million** during the period, consistent with the substantial increase in production volume, as the economic benefits of some fixed assets are consumed in line with production levels Depreciation Expenses | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation Expenses | 9.0 | 5.6 | 58.7% | [Net Finance Costs](index=9&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC%E6%B7%A8%E9%A1%8D) Net finance costs decreased by **32.0%** to **US$2.2 million**, primarily due to the voluntary early repayment of **US$12.0 million** in MIC loan principal, alongside scheduled repayments of **US$4.8 million** Net Finance Costs | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 2.2 | 3.3 | -32.0% | - MIC agreed to extend the principal installment repayment deadline, originally due on June 20, 2025, to October 20, 2025[36](index=36&type=chunk) [Impairment Loss](index=9&type=section&id=%E6%B8%9B%E5%80%BC%E8%99%A7%E6%90%8D) An impairment loss of **US$120.2 million** related to the K&S mine was recorded during the period, primarily due to increased projected operating costs from ruble appreciation; additionally, Bolshoi Seym exploration and evaluation assets were fully impaired by **US$6.7 million** due to license issues Impairment Loss Breakdown | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | | :--- | :--- | :--- | | K&S Mine Impairment Loss | 120.2 | – | | Bolshoi Seym Asset Impairment | 6.7 | – | [Loss Attributable to Owners of the Company](index=9&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%8B%A5%E6%9C%89%E4%BA%BA%E6%87%89%E5%8D%A0%E8%99%A7%E6%90%8D) The Group recorded a loss of **US$102.0 million** in H1 2025, a significant increase from **US$13.2 million** in the prior year, primarily due to a **US$126.9 million** impairment loss, partially offset by a **US$29.9 million** gain from the reversal of EPC contract-related amounts Loss Attributable to Owners of the Company | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 102.0 | 13.2 | 670.2% | [Cash Flow and Financial Resources](index=10&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%88%87%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) Operating cash flow was positive, but significant loan repayments and capital expenditures led to a net decrease in cash and deposits, while total borrowings decreased and a share consolidation was implemented [Cash Flow Statement](index=10&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash generated from operating activities was **US$86 thousand** during the period, primarily due to increased sales volume and reduced cash costs; however, net cash and cash equivalents decreased by **US$30.852 million** due to significantly higher loan repayments and capital expenditures for Sutara mine development Cash Flow Summary | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | 86 | (1,168) | N/A | | Loan Repayments | (16,809) | (4,457) | 277.1% | | Capital Expenditures | (12,376) | (9,459) | 30.8% | | Cash and Bank Balances at Period-End | 29,882 | 39,362 | -24.1% | - Loan repayments increased by **277.1%**, primarily due to the voluntary early repayment of **US$12.0 million** in MIC loan principal[43](index=43&type=chunk) - Capital expenditures increased by **30.8%**, mainly for the development of the Sutara mine[43](index=43&type=chunk) [Liquidity, Financial and Capital Resources](index=10&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's cash and deposits decreased to **US$29.9 million**, primarily due to MIC loan repayments and Sutara mine capital expenditures; total borrowings decreased, and the gearing ratio fell to **13.3%**, with the company having implemented a share consolidation and continuing to monitor exchange rate fluctuation risks - As of June 30, 2025, cash and deposits decreased to **US$29.9 million** (December 31, 2024: **US$60.7 million**)[45](index=45&type=chunk) Financial Resources Summary | Indicator | June 30, 2025 (Million USD) | Dec 31, 2024 (Million USD) | | :--- | :--- | :--- | | Total Liabilities to MIC | 28.1 | 44.9 | | Gearing Ratio | 13.3% | 14.2% | - Share consolidation became effective on June 27, 2025, merging every ten issued shares into one ordinary share[44](index=44&type=chunk) - The Group had no currency hedging positions as of June 30, 2025, but will consider entering into foreign exchange hedging contracts under favorable conditions[53](index=53&type=chunk) [Exploration, Development and Mining Production Activities](index=11&type=section&id=%E5%8B%98%E6%8E%A2%E3%80%81%E9%96%8B%E7%99%BC%E5%8F%8A%E6%8E%A1%E7%A4%A6%E7%94%A2%E7%94%A2%E6%B4%BB%E5%8B%95) Development and mining production activities generated **US$122.7 million** during the period, with K&S development accounting for **US$122.1 million**; capital expenditures increased to **US$12.4 million**, primarily for Sutara mine development and the purchase of property, plant, and equipment Development and Mining Production Activities | Project | H1 2025 (Million USD) | H1 2024 (Million USD) | | :--- | :--- | :--- | | K&S Development (Operating Expenses) | 109.8 | 108.9 | | K&S Development (Capital Expenditures) | 12.3 | 9.4 | | **Total** | **122.7** | **118.3** | - No significant exploration activities occurred during the period, with focus remaining on K&S mine development and production[46](index=46&type=chunk) [Employees and Remuneration Policy](index=13&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's employee count increased to **1,616**; total staff costs rose to **US$23.3 million**, primarily due to the strengthening ruble exchange rate and labor shortages driving up labor costs Employee Statistics and Costs | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 1,616 | 1,579 | | Total Staff Costs (Million USD) | 23.3 | 17.4 | [Chairman's Report](index=14&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) The Chairman highlights Sutara mine's strategic success in boosting operational performance, while acknowledging external market challenges and outlining future efficiency and cost control initiatives [Strategic Progress](index=14&type=section&id=%E7%AD%96%E7%95%A5%E6%80%A7%E9%80%B2%E5%B1%95) The successful commissioning of the Sutara mine marks a strategic turning point for the Group, addressing the limitations of declining grades at the Kimkan mine and significantly enhancing K&S's production and sales volumes and competitive position, validating the company's capability to execute complex mining projects - The Sutara mine provides higher quality ore, leading to **25.7%** and **26.9%** growth in K&S production and sales volumes, respectively[57](index=57&type=chunk) - Sutara's commissioning lays the groundwork for future expansion, including the deployment of the company's own mining fleet in H2 2025[58](index=58&type=chunk) [Financial Performance Overview](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%A6%82%E8%A7%88) Despite significant operational advancements, external market conditions, including a **13.9% decline** in iron ore prices and substantial ruble appreciation, adversely impacted financial performance, limiting revenue growth to **9.3%** and resulting in a modest improvement in adjusted EBITDA to **US$6.7 million** - Falling iron ore prices were primarily due to weakened demand from China's real estate crisis, market oversupply, and adverse macroeconomic factors[60](index=60&type=chunk) - Significant ruble strengthening led to a substantial increase in US dollar-equivalent operating costs, particularly in Q2 2025[60](index=60&type=chunk) [Non-Recurring Items and Underlying Performance](index=15&type=section&id=%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E9%A0%85%E7%9B%AE%E5%8F%8A%E5%9F%BA%E6%9C%AC%E6%A5%AD%E7%B8%BE) A net loss of **US$102.0 million** was recorded during the period, but after excluding non-cash non-recurring items, including a **US$29.9 million** EPC contractor settlement gain, a **US$120.2 million** K&S asset impairment, and a **US$6.7 million** Bolshoi Seym provision, the underlying loss was **US$3.0 million**, an improvement from the prior year Non-Recurring Items | Non-Recurring Item | Amount (Million USD) | | :--- | :--- | | Engineering, Procurement, and Construction Contractor Settlement Gain | 29.9 | | K&S Asset Impairment Provision | 120.2 | | Bolshoi Seym Provision | 6.7 | - The adjusted underlying loss of **US$3.0 million** more accurately reflects the Group's operational performance and cash-generating capability[62](index=62&type=chunk) [Operational Enhancements](index=15&type=section&id=%E7%87%9F%E9%81%8B%E6%8F%90%E5%8D%87) The Group continues to seek operational efficiency improvements, planning to construct a crushing and screening plant at Sutara to reduce transportation costs by approximately **20%** and strategically transitioning mining operations to in-house management for enhanced control and cost-effectiveness - A crushing and screening plant will be constructed at the Sutara mine, expected to reduce transportation volume and costs by approximately **20%**[64](index=64&type=chunk) - Plans are underway to transition mining operations to in-house management by acquiring owned mining equipment, aiming to enhance operational control and cost-effectiveness[64](index=64&type=chunk) [Addressing Market Challenges and Future Outlook](index=16&type=section&id=%E6%87%89%E5%B0%8D%E5%B8%82%E5%A0%B4%E6%8C%91%E6%88%B0%E5%8F%8A%E6%9C%AA%E4%BE%86%E5%89%8D%E6%99%AF) Facing uncertain iron ore market demand, oversupply, and cost pressures from ruble appreciation, the Group will continue to focus on enhancing operational efficiency, maintaining financial flexibility and liquidity, and preparing for market recovery, with Sutara's quality improvements expected to yield more significant benefits - The iron ore market faces weakened demand from China's real estate sector, market oversupply, and the ongoing impact of ruble appreciation on the cost base[65](index=65&type=chunk) - Future strategic focus is on controlling controllable factors: enhancing operational efficiency, maintaining financial flexibility and liquidity, and preparing to capitalize on market recovery[65](index=65&type=chunk) [Interim Financial Report](index=17&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A) The interim financial report details a significant loss for the period, primarily driven by impairment losses, alongside a substantial decrease in total assets and equity [Condensed Consolidated Statement of Profit or Loss](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The Group's revenue for H1 2025 was **US$122,798 thousand**, but due to an impairment loss of **US$126,882 thousand**, the loss for the period expanded to **US$101,976 thousand**, with loss attributable to owners of the Company being **US$101,968 thousand** Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Revenue | 122,798 | 112,329 | | Operating Expenses (Excluding Depreciation) | (115,977) | (114,375) | | Impairment Loss | (126,882) | – | | Other Income, Gains and Losses | 28,016 | (1,248) | | Loss for the Period | (101,976) | (13,226) | | Loss Attributable to Owners of the Company | (101,968) | (13,239) | | Basic Loss Per Share (US cents) | (7.98) | (1.53) | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The loss for the period was **US$101,976 thousand**, which, combined with other comprehensive income of **US$1,097 thousand** (primarily from exchange differences on translating foreign operations), resulted in a total comprehensive expense for the period of **US$100,879 thousand** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss for the Period | (101,976) | (13,226) | | Exchange Differences on Translating Foreign Operations | 1,097 | 294 | | Other Comprehensive Income for the Period, Net of Tax | 1,097 | 1,389 | | Total Comprehensive Expense for the Period | (100,879) | (11,837) | [Condensed Consolidated Statement of Financial Position](index=19&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets significantly decreased to **US$277,241 thousand** from **US$445,835 thousand** on December 31, 2024, with non-current assets primarily reduced by impairment of property, plant, and equipment; equity attributable to owners of the Company decreased to **US$215,076 thousand** Condensed Consolidated Statement of Financial Position Summary | Indicator | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Total Non-Current Assets | 154,362 | 290,657 | | Total Current Assets | 122,879 | 155,178 | | Total Assets | 277,241 | 445,835 | | Equity Attributable to Owners of the Company | 215,076 | 316,144 | | Total Liabilities | 62,731 | 130,446 | - Property, plant and equipment decreased from **US$269,871 thousand** to **US$136,414 thousand**, primarily due to impairment losses[71](index=71&type=chunk) - Total current liabilities decreased from **US$98,003 thousand** to **US$53,332 thousand**, mainly due to reductions in trade and other payables and borrowings[72](index=72&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=21&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, equity attributable to owners of the Company decreased from **US$316,144 thousand** at the beginning of the period to **US$215,076 thousand**, primarily due to a loss for the period of **US$101,968 thousand** Condensed Consolidated Statement of Changes in Equity | Indicator | Jan 1, 2025 (Thousand USD) | June 30, 2025 (Thousand USD) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 316,144 | 215,076 | | Loss for the Period | – | (101,968) | | Other Comprehensive Income | – | 900 | | Total Comprehensive Income/(Expense) for the Period | – | (101,068) | [Condensed Consolidated Statement of Cash Flows](index=22&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash used in operating activities was **US$92 thousand** during the period; net cash used in investing activities was **US$12,737 thousand**, primarily for the purchase of property, plant, and equipment and exploration and evaluation assets; net cash used in financing activities was **US$18,760 thousand**, mainly for loan repayments, resulting in a net decrease in cash and cash equivalents of **US$31,589 thousand** for the period Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (92) | (1,395) | | Net Cash Used in Investing Activities | (12,737) | (8,608) | | Net Cash Used in Financing Activities | (18,760) | (6,485) | | Net Decrease in Cash and Cash Equivalents for the Period | (31,589) | (16,488) | | Cash and Cash Equivalents at Period-End | 29,149 | 38,890 | - Expenditure on the purchase of property, plant and equipment and exploration and evaluation assets was **US$12,376 thousand**, an increase from the prior year[75](index=75&type=chunk) - Loan repayments of **US$16,809 thousand** were significantly higher than **US$4,457 thousand** in the prior year[75](index=75&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=23&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) These notes detail the basis of financial statement preparation, impact of new accounting standards, revenue breakdown, segment performance, operating expenses, impairment, and other financial disclosures [Basis of Preparation](index=23&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated financial statements are prepared in accordance with HKAS 34 and the HKEX Listing Rules; the company continuously assesses the impact of UK, EU, and US sanctions, currently deeming no significant direct impact, but supply chain disruption risks require close monitoring - The Group's major suppliers and customers are located in Mainland China and Russia[77](index=77&type=chunk) - Current assessment indicates no significant direct impact of sanctions on the Group or its operations, but supply chain disruption risks could affect K&S operations and Sutara mine development[77](index=77&type=chunk) [New and Revised HKFRS Accounting Standards](index=24&type=section&id=%E6%96%B0%E8%A8%82%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%88%99%E6%9C%83%E8%A8%88%E6%BA%96%E5%88%99) The Group first applied the amendments to HKAS 21 'Lack of Exchangeability' from January 1, 2025, without changes to accounting policies or retrospective adjustments; HKFRS 18, effective January 1, 2027, will significantly impact financial statement presentation - HKFRS 18 will introduce significant changes, including profit or loss statement structure, disclosure of management-defined performance measures, and aggregation and disaggregation requirements[79](index=79&type=chunk) [Revenue](index=24&type=section&id=%E6%94%B6%E7%9B%8A) The Group's primary revenue source is the sale of iron concentrate from the K&S mine; total revenue for H1 2025 was **US$122,798 thousand**, with **US$118,673 thousand** from Chinese customers and **US$77 thousand** from engineering services Revenue by Geographical Market | Geographical Market | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | People's Republic of China | 118,673 | 107,914 | | Russia | 4,125 | 4,415 | | **Total Revenue from External Customers** | **122,798** | **112,329** | - The vast majority of revenue (**US$122,721 thousand**) is derived from products transferred at a point in time (iron concentrate sales)[82](index=82&type=chunk) [Segment Information](index=25&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The operating mines segment (K&S) generated **US$122,721 thousand** in revenue during the period but incurred a segment loss of **US$116,198 thousand** due to impairment losses; mines under development, engineering, and other segments contributed insignificantly to total revenue and all recorded losses Segment Performance | Segment | H1 2025 Revenue (Thousand USD) | H1 2025 Segment Loss (Thousand USD) | | :--- | :--- | :--- | | Operating Mines | 122,721 | (116,198) | | Mines Under Development | – | (6,714) | | Engineering | 77 | (444) | | Other | – | (10) | | **Total** | **122,798** | **(123,366)** | [Operating Expenses (Including Depreciation)](index=26&type=section&id=%E7%87%9F%E9%81%8B%E9%96%8B%E6%94%AF%EF%BC%88%E5%8C%85%E6%8B%AC%E6%8A%98%E8%88%8A%EF%BC%89) Total operating expenses (including depreciation) for the period were **US$124,933 thousand**, an increase from the prior year, with significant changes observed in subcontracted mining costs, transportation and freight costs, staff costs, and mineral extraction tax Operating Expenses Breakdown | Operating Expense Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Subcontracted Mining Costs and Engineering Services | 35,192 | 37,076 | | Transportation and Freight Costs | 24,657 | 17,163 | | Staff Costs (Mine Operations) | 19,202 | 14,044 | | Mineral Extraction Tax | 11,513 | 4,266 | | Depreciation (Mine Operations) | 8,891 | 5,533 | | Temporary Export Tax | – | 7,267 | | **Total** | **124,933** | **120,020** | - Mineral extraction tax significantly increased by **US$11,513 thousand**, while temporary export tax decreased to zero due to policy changes[84](index=84&type=chunk) [Impairment Loss](index=27&type=section&id=%E6%B8%9B%E5%80%BC%E8%99%A7%E6%90%8D) An impairment loss of **US$120.2 million** was recognized for the K&S project during the period, primarily due to increased cost base from ruble appreciation, Russian inflation, and higher mineral extraction tax rates; additionally, Bolshoi Seym exploration and evaluation assets were fully impaired by **US$6.651 million** due to license revocation - K&S project impairment loss is primarily based on value-in-use calculations, with key assumptions including future cash flows, mine life, iron ore prices, production costs, and discount rates[85](index=85&type=chunk) Key Assumptions for Impairment Calculation | Key Assumption | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Average Annual Production Volume (Thousand wet tonnes) | 2,979 | 2,977 | | Platts 65% Fe Iron Ore Price (USD/dry tonne) | H2 2025: 104.3 | 2025: 112.6 | | Russian Ruble Exchange Rate (per US dollar) | H2 2025: 89 | 2025: 103 | | Nominal Pre-Tax Discount Rate | 12.39% | 13.31% | - The decrease in discount rate was mainly due to lower risk-free rates and a reduction in deleveraged beta for peers, partially offset by increased country risk premiums for Russia and China[87](index=87&type=chunk) [Other Income, Gains and Losses](index=30&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) Net other income, gains, and losses for the period amounted to **US$28,016 thousand**, primarily comprising a **US$29,883 thousand** gain from the reversal of accrued amounts and EPC contract-related payables, offsetting a net foreign exchange loss of **US$1,989 thousand** Other Income, Gains and Losses | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss/(Gain) on Disposal of Property, Plant and Equipment | (455) | 11 | | Net Foreign Exchange Loss | (1,989) | (935) | | Reversal of Accrued Amounts and EPC Contract-Related Payables | 29,883 | – | | **Total** | **28,016** | **(1,248)** | [Finance Costs](index=30&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Total finance costs for the period were **US$2,444 thousand**, a decrease from **US$4,115 thousand** in the prior year, primarily due to reduced interest expenses on borrowings Finance Costs Breakdown | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Interest Expense on Borrowings | 2,307 | 3,918 | | Interest Expense on Lease Liabilities | 4 | 2 | | Discount Reversal on Environmental Provisions | 133 | 195 | | **Total** | **2,444** | **4,115** | [Income Tax Credit/(Expense)](index=31&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D%E3%83%BB%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89) An income tax credit of **US$1,502 thousand** was recorded during the period, primarily related to an increase in deferred tax; the Russian corporate tax rate increased from **20%** to **25%**, but the K&S project still benefits from preferential tax rates Income Tax Credit/(Expense) | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Current Income Tax (Russian Corporate Tax) | 30 | (227) | | Deferred Tax | 1,472 | 55 | | **Total** | **1,502** | **(172)** | - The K&S project was exempt from Russian corporate tax from 2017-2021, then taxed at a reduced rate of **10%** for the subsequent five years, before increasing to **25%**[91](index=91&type=chunk) [Loss Per Share](index=32&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) Basic and diluted loss per share attributable to owners of the Company was **7.98 US cents**, a significant increase from **1.53 US cents** in the prior year, primarily reflecting the expanded loss for the period; the weighted average number of shares has been adjusted for the rights issue and share consolidation Loss Per Share | Indicator | H1 2025 (US cents) | H1 2024 (US cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (7.98) | (1.53) | | Diluted Loss Per Share | (7.98) | (1.53) | - Share consolidation became effective on June 27, 2025, merging every ten issued ordinary shares into one ordinary share[94](index=94&type=chunk) [Trade and Other Receivables](index=33&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables amounted to **US$43,098 thousand**, a decrease from **US$46,869 thousand** on December 31, 2024; trade receivables are primarily measured at fair value through profit or loss Trade and Other Receivables | Item | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Trade Receivables | 22,797 | 30,681 | | Recoverable VAT | 12,540 | 10,195 | | Prepayments to Suppliers | 7,221 | 5,354 | | **Total** | **43,098** | **46,869** | Aging Analysis of Trade Receivables | Trade Receivables Aging | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Less than one month | 12,299 | 21,141 | | One to three months | 18,382 | 9,539 | | Over three months to six months | 1 | 1 | | Over six months | – | – | | **Total** | **22,797** | **30,681** | [Trade and Other Payables](index=34&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables significantly decreased to **US$28,119 thousand** from **US$78,510 thousand** on December 31, 2024, primarily due to the derecognition of related construction costs payable and accrued amounts following the resolution of disputes with EPC contractors Trade and Other Payables | Item | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Trade Payables | 11,422 | 12,108 | | Customer Advances | 557 | 7,040 | | Construction Costs Payable | – | 22,694 | | Accrued Amounts and Other Payables | 16,059 | 36,528 | | **Total** | **28,119** | **78,510** | - Disputes with EPC contractors have been fully resolved, leading to the derecognition of **US$22.7 million** in construction costs payable and **US$23.7 million** in other accrued costs[102](index=102&type=chunk) [Borrowings](index=35&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total borrowings significantly decreased to **US$28,425 thousand** from **US$44,754 thousand** on December 31, 2024, primarily due to the voluntary early repayment of MIC loans; MIC has agreed to extend the repayment deadline for certain installments Borrowings | Item | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Other Loans | 28,425 | 44,754 | | **Total Borrowings** | **28,425** | **44,754** | - Borrowings are secured by property, plant and equipment, 100% equity interest in LLC KS GOK, and rights to certain bank accounts[106](index=106&type=chunk) - MIC has terminated the net debt/EBITDA ratio and debt service coverage ratio covenant requirements for Q2 and Q4 2024, and Q2 2025[109](index=109&type=chunk) - MIC agreed to extend the repayment deadline for the installment originally due on June 20, 2025, to October 20, 2025[110](index=110&type=chunk) [Share Capital](index=38&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's share capital was **US$1,350,734 thousand**; a share consolidation, effective June 27, 2025, merged every ten issued ordinary shares into one, reducing the number of issued shares Share Capital Movement | Indicator | Number of Shares (Thousand shares) | Amount (Thousand USD) | | :--- | :--- | :--- | | Dec 31, 2024 and Jan 1, 2025 | 12,779,485,885 | 1,350,734 | | Share Consolidation | (11,501,537,297) | – | | **June 30, 2025** | **1,277,948,588** | **1,350,734** | - A rights issue completed on December 13, 2024, raised net proceeds of approximately **US$46.3 million** and issued **4,259,828,628** rights shares[113](index=113&type=chunk) [Related Party Disclosures](index=39&type=section&id=%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E6%8A%AB%E9%9C%B2) MIC Invest LLC ceased to be a principal shareholder of the Company from February 22, 2024; total key management personnel remuneration for the period was **US$2,582 thousand**, an increase from the prior year Key Management Personnel Remuneration | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Key Management Personnel Remuneration | 2,582 | 2,296 | | - Short-term Benefits | 2,253 | 1,983 | | - Post-employment Benefits | 329 | 313 | [Events After the Reporting Period](index=39&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) On July 28, 2025, the Group agreed to dispose of its **46% equity interest** in Heilongjiang Jianlong Vanadium Co., Ltd. (a joint venture) for RMB **32.2 million** (approximately **US$4.5 million**); upon completion, the Group will no longer hold any equity interest in the joint venture - Following the disposal of the joint venture equity, the Group will no longer own the steel slag reprocessing plant project[117](index=117&type=chunk) [Project Review](index=40&type=section&id=%E9%A0%85%E7%9B%AE%E5%9B%9E%E9%A1%A7) The K&S project, driven by Sutara, showed strong operational improvements and extended mine life, while other projects are being reviewed or disposed of, with ongoing assessment of sanctions' impact [K&S Project](index=40&type=section&id=K%26S%E9%A0%85%E7%9B%AE) Driven by the Sutara mine, the K&S project demonstrated strong operational performance in H1 2025, with commercial concentrate production growing by **25.7%** and capacity utilization significantly increasing to **90%**; Sutara's high-quality ore reduced mining costs and extended mine life, with plans to acquire owned mining equipment for enhanced efficiency K&S Project Overview | Indicator | Data | | :--- | :--- | | Capacity | 3.2 Million tonnes/year (iron concentrate) | | Ore Processing Capacity | 10 Million tonnes/year | | Distance to China Border | 240 km | | Total Resources | 557 Million tonnes | | Total Reserves | 313 Million tonnes | | Mine Life | 30 years+ | | Iron Grade (Concentrate) | 65% | - Commercial concentrate production in H1 2025 was **1,422,870 tonnes**, a **25.7% increase** YoY[122](index=122&type=chunk) - Capacity utilization increased from **72%** in H1 2024 to **90%** in H1 2025[122](index=122&type=chunk) - Sutara mine's high-quality ore and reduced stripping ratio led to a **20.5% decrease** in total unit cash cost per wet tonne to **US$77.4**[127](index=127&type=chunk)[130](index=130&type=chunk) - K&S plans to purchase and lease its own mining equipment by the end of 2025 to replace some existing mining contractors[128](index=128&type=chunk) [Garinskoye Project](index=42&type=section&id=Garinskoye%E9%A0%85%E7%9B%AE) The Garinskoye project, a **99.6%** owned advanced exploration project, holds potential for low-cost DSO (Direct Shipping Ore) operations and conversion into a large open-pit mine; the company is reviewing options to advance the project, including railway connection construction or DSO operation Garinskoye Project Overview | Indicator | Data | | :--- | :--- | | Iron Grade | 68% | | Iron Capacity | 4.6 Million tonnes/year | | Total Resources | 260 Million tonnes | | Total Reserves | 26 Million tonnes | | Mine Life | 20 years+ | - The DSO option could achieve an annual production of **1.9 million tonnes** with a **55%** Fe concentrate grade and an **8-year** mine life, with an option to add a wet magnetic separation stage to produce **68%** high-grade 'super concentrate'[135](index=135&type=chunk) [Other Projects](index=43&type=section&id=%E5%85%B6%E4%BB%96%E9%A0%85%E7%9B%AE) The Group's other projects include a steel slag reprocessing plant (with **46%** equity sold after the reporting period) and Giproruda, a mining consulting firm; the steel slag reprocessing plant did not significantly contribute to performance Other Projects Summary | Project | Product/Service | Location | Equity | | :--- | :--- | :--- | :--- | | Steel Slag Reprocessing Plant | Vanadium Pentoxide | Heilongjiang, China | 46% (Agreed to dispose) | | Giproruda | Mining Technology Research | St. Petersburg, Russia | 70% | - The Group has agreed to dispose of its **46%** equity interest in the steel slag reprocessing plant, and upon completion, will no longer hold any equity[137](index=137&type=chunk) [Impact of Sanctions on Russia](index=43&type=section&id=%E5%B0%8D%E4%BF%84%E7%BE%85%E6%96%AF%E5%88%B6%E8%A3%81%E7%9A%84%E5%BD%B1%E9%9F%BF) The Company continuously assesses the potential impact of UK, EU, and US sanctions; current assessment indicates no significant direct impact on the Group or its operations, but geopolitical developments could lead to supply chain disruptions affecting K&S operations and Sutara mine development - The Group's operations and business in Russia and other regions continue as usual[139](index=139&type=chunk) - Supply chain disruption risks could affect K&S operations, mining equipment procurement, and Sutara mine development[139](index=139&type=chunk) [Corporate Governance and Other Information](index=44&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The Company maintains strong corporate governance, with no significant listed securities transactions, contingent liabilities, or material investments/disposals during the period [Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025 [Contingent Liabilities](index=44&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities [Material Investments and Acquisitions/Disposals](index=44&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E6%94%B6%E8%B3%BC%E5%87%BA%E5%94%AE) The Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period; apart from Sutara mine development, there are no other significant investment or capital asset plans for H2 2025 as of the reporting date [Corporate Governance](index=44&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company's management and Board are committed to maintaining good corporate governance and have complied with the code provisions of Appendix C1 of the Listing Rules; the Audit Committee has reviewed and discussed the unaudited interim results for the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[146](index=146&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim results for the period[147](index=147&type=chunk) [Publication of Interim Results and Interim Report](index=45&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company; the Company will provide shareholders with the interim report for the six months ended June 30, 2025, in due course

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Clover Biopharmaceuticals, Ltd. 三葉草生物製藥有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：2197） 截 至2025年6月30日止六個月 中期業績公告 董事會欣然公佈本集團截至2025年6月30日止六個月的未經審核簡明綜合業績， 連 同2024年 同 期 的 比 較 數 字。該 等 中 期 業 績 已 由 審 核 委 員 會 審 閱。 於 本 公 告 內，「我 們」指 本 公 司，及 倘 文 義 另 有 所 指，本 集 團。本 公 告 所 載 的 若 干 金 額 及 百 分 比 數 字 已 作 四 捨 五 入 調 整，或 已 四 捨 五 入 至 小 數 點 後 一 位 或 兩 位。本 公 告 任 何 表 格、圖 表 或 其 他 地 方 所 示 總 額 與 所 列 數 額 總 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 （於開曼群島註冊成立的有限公司） （股份代號：1109） 二 零 二 五 年 中 期 業 績 公 告 摘 要 – 1 – • 董 事 會 決 議 宣 派 二 零 二 五 年 中 期 股 息 每 股 人 民 幣0.20元（折 合 每 股 港 幣0.219元），與 二 零 二 四 年 中 期 股 息 每 股 人 民 幣0.20元 持 平。 • 二 零 二 五 年 上 半 年，本 集 團 實 現 物 業 簽 約 銷 售 額 人 民 幣1,103.0億 元， 實 現 簽 約 面 積412萬 平 方 米。截 至 二 零 二 五 年 六 月 三 十 日，本 集 團 已 銷售尚未結算的簽約額約為人民幣2,513.7億元，預計其中人民幣1 ...

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) This section provides a supplemental disclosure to JX Energy Ltd.'s 2024 annual report, focusing on continuing connected transactions - This announcement is a supplemental disclosure to the annual report of JX Energy Ltd. for the year ended December 31, 2024[2](index=2&type=chunk)[3](index=3&type=chunk) - The primary purpose is to provide supplementary disclosure regarding "Continuing Connected Transactions" in the 2024 Annual Report, in accordance with Listing Rule 14A.71[3](index=3&type=chunk)[4](index=4&type=chunk) [Details of Continuing Connected Transactions](index=1&type=section&id=Details%20of%20Continuing%20Connected%20Transactions) This section outlines specific agreements, associated fees, and the relationship with the connected party, along with the auditor's opinion [Gas Processing Agreement](index=2&type=section&id=Gas%20Processing%20Agreement) JX Energy Ltd. entered into a gas processing agreement with JX Energy (Canada) Ltd. on May 9, 2019, for the transportation of gas from the Voyager area using JX Energy's gathering system, with the agreement term extending to December 31, 2044, detailing estimated monthly processing fees and actual 2024 expenses - The agreement was signed on May 9, 2019, effective until December 31, 2044, with company responsibility commencing upon Voyager's operational start on June 29, 2020[5](index=5&type=chunk) Estimated Monthly Gas Processing Fees | Period | Monthly Processing Fee (CAD) | Monthly Processing Fee (HKD) | | :--- | :--- | :--- | | January 1, 2024 to December 31, 2024 | 648,000 | 3,700,000 | | January 1, 2025 to December 31, 2025 | 764,000 | 4,370,000 | | January 1, 2026 to December 31, 2026 | 912,000 | 5,200,000 | | January 1, 2027 to December 31, 2044 | 433,000 | 2,500,000 | 2024 Gas Processing Agreement Fees | Fee Type | Amount (CAD) | | :--- | :--- | | Fixed Processing Fee | 6,012,396 | | Variable Operating Costs | 70,514 | | **Total** | **6,082,910** | [Voyager Compression Agreement](index=2&type=section&id=Voyager%20Compression%20Agreement) JX Energy Ltd. entered into a Voyager compression agreement with JX Energy (Canada) Ltd. on November 1, 2019, for the transportation of natural gas and related products to the Alberta natural gas pipeline system using JX Energy's compression station and well batteries, with the agreement term extending to December 31, 2026, and a fixed monthly processing fee of CAD 146,000, along with actual 2024 expenses - The agreement was signed on November 1, 2019, effective until December 31, 2026, with company responsibility commencing upon Voyager's operational start on June 29, 2020[5](index=5&type=chunk) - The total monthly processing fee is **CAD 146,000** (equivalent to **HKD 835,120**)[5](index=5&type=chunk) 2024 Voyager Compression Agreement Fees | Fee Type | Amount (CAD) | | :--- | :--- | | Fixed Processing Fee | 1,752,000 | | Variable Operating Costs | 144,962 | | **Total** | **1,896,962** | [Relationship with Connected Person](index=2&type=section&id=Relationship%20with%20Connected%20Person) JX Energy (Canada) Ltd. is a Canadian private company controlled by Mr. Liu Yongtan, a director and Chairman of the Board of JX Energy Ltd., clarifying the connected nature of the aforementioned transactions - JX Energy (Canada) Ltd. is controlled by Mr. Liu Yongtan, who was appointed as a Director and Chairman of the Board of JX Energy Ltd. on December 18, 2019[6](index=6&type=chunk) [Auditor's Opinion](index=3&type=section&id=Auditor%27s%20Opinion) The company's auditor has confirmed to the Board that they are unaware of any matters suggesting the continuing connected transactions were not approved by the Board, did not comply with the company's pricing policy, or were not conducted in accordance with the connected transaction agreements - The auditor confirmed that the continuing connected transactions were approved by the Board[8](index=8&type=chunk) - The auditor confirmed that the transactions complied in all material respects with the company's pricing policy[8](index=8&type=chunk) - The auditor confirmed that the transactions were conducted in all material respects in accordance with the connected transaction agreements[8](index=8&type=chunk) [Other Important Disclosures](index=3&type=section&id=Other%20Important%20Disclosures) This section confirms the unchanged status of other annual report information and lists the current composition of the Board of Directors - The information in this supplemental announcement does not affect other information contained in the 2024 Annual Report, with all other information remaining unchanged except as disclosed[8](index=8&type=chunk) - As of the announcement date, the Board of Directors comprises two executive directors (Mr. Liu Yongtan, Mr. Dai Binyou) and three independent non-executive directors (Mr. Kong Zhanpeng, Ms. Du Jiewen, Ms. Wei Jia)[9](index=9&type=chunk) - The exchange rate of **CAD 1.00 to HKD 5.72** is provided in the announcement for illustrative purposes only[9](index=9&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。 （於百慕達註冊成立之有限公司） （股份代號：603） * 截至二零二五年六月三十日止六個月之中期業績 中期業績 中油燃氣集團有限公司（「公司」）董事（「董事」）局（「董事局」）宣佈公司及其附 屬公司（統稱「集團」）截至二零二五年六月三十日止六個月（「期內」）之未經審 核簡明綜合中期業績。 期內之未經審核簡明綜合財務資料未經審核，但經由公司審核委員會（「審核 委員會」）審閱。 數據摘要 – 1 – ‧ 整體毛利率與去年同期相比維持12%； ‧ 期內溢利率為7%，與去年同期相比上升1%；及 ‧ 新增居民用戶31,062戶及工商業用戶541戶。 簡明綜合全面收益表 截至二零二五年六月三十日止六個月 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | 附註 | 千港元 | 千港元 | | | | （未經審核） | （ ...

[2025 Interim Results Highlights](index=1&type=section&id=2025%20Interim%20Results%20Highlights) This section provides a high-level overview of the Group's financial performance and key drivers for the first half of 2025 [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The Group's revenue slightly increased by 0.5% to RMB 2,329.7 million in H1 2025, with profit from continuing operations surging 139.8% to RMB 62.8 million and net profit attributable to owners increasing 167.1% to RMB 54.9 million Financial Performance Summary (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | 2,329.7 | 2,319.0 | 0.5% | | Profit for the period from continuing operations | 62.8 | 26.2 | 139.8% | | Net profit attributable to owners of the Company | 54.9 | 20.6 | 167.1% | [Reasons for Significant Net Profit Growth](index=2&type=section&id=Reasons%20for%20Significant%20Net%20Profit%20Growth) Net profit growth was driven by a 1,058.7% increase in gold product sales and improved gross margin in new retail jewelry, plus RMB 11.5 million gain from fresh food retail business disposal, partially offset by RMB 18.5 million share-based payment expense - Jewelry new retail business gold product sales significantly increased by approximately **1,058.7%** year-on-year, with most gold products sold from low-cost inventory, coupled with rising gold prices, leading to a significant increase in gross margin and an overall gross profit growth of approximately **103.0%**[4](index=4&type=chunk) - Completed the disposal of the fresh food retail business, generating a gain of approximately **RMB 11.5 million** for the Group (after allocating related gains to non-controlling interests)[4](index=4&type=chunk) - The grant of share options by Everest Gold Group to employees resulted in share-based payment expenses of approximately **RMB 18.5 million**, partially offsetting the net profit growth[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position for the interim period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2025, continuing operations revenue was RMB 2,329.7 million, gross profit surged to RMB 142.0 million, profit before tax was RMB 85.5 million, and profit for the period was RMB 62.8 million, with basic and diluted EPS of RMB 0.02 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Revenue | 2,329,712 | 2,318,997 | | Cost of sales | (2,187,674) | (2,249,028) | | Gross profit | 142,038 | 69,969 | | Profit before income tax | 85,494 | 28,162 | | Profit for the period from continuing operations | 62,805 | 26,190 | | Loss for the period from discontinued operations | – | (15,888) | | Gain on disposal of subsidiaries | 11,465 | – | | Total profit and comprehensive income for the period | 74,270 | 10,302 | | Profit for the period attributable to owners of the Company | 54,911 | 20,556 | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets increased to RMB 205.8 million, current assets to RMB 1,915.1 million, and net current assets to RMB 1,253.6 million, with total equity reaching RMB 1,458.1 million Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Non-current assets | 205,800 | 129,700 | | Current assets | 1,915,104 | 1,849,176 | | Current liabilities | 661,551 | 758,750 | | Net current assets | 1,253,553 | 1,090,426 | | Total equity | 1,458,069 | 1,218,348 | | Equity attributable to owners of the Company | 606,579 | 461,437 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, significant accounting policies, segment information, revenue breakdown, tax expenses, and other financial notes for the interim period [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules, reflecting the disposal of the fresh food retail business as a discontinued operation with restated comparative figures - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[11](index=11&type=chunk) - The Group completed the disposal of 51% equity interest in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. on January 13, 2025, and the fresh food retail business is classified as a discontinued operation, with comparative figures for H1 2024 restated[11](index=11&type=chunk) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and applicable disclosure requirements of Appendix D2 of the HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[11](index=11&type=chunk) [Significant Accounting Policies](index=7&type=section&id=Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual financial statements, except for new policies from revised IFRS - The condensed consolidated financial statements are prepared on a **historical cost basis**[12](index=12&type=chunk) - Except for new accounting policies resulting from the application of revised International Financial Reporting Standards, the accounting policies and methods of computation used are consistent with those followed in the 2024 annual financial statements[12](index=12&type=chunk) [Application of Revised International Financial Reporting Standards](index=8&type=section&id=Application%20of%20Revised%20International%20Financial%20Reporting%20Standards) Revised IFRS, effective from January 1, 2025, were first applied in this interim period but had no material impact on the Group's financial position or performance - Revised International Financial Reporting Standards, such as amendments to IAS 21 "Lack of Exchangeability", were first applied in this interim period[13](index=13&type=chunk) - The application of the revised International Financial Reporting Standards had **no material impact** on the Group's financial position and performance for the current and prior periods[13](index=13&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group operates two reportable segments: manufacturing and new retail jewelry, with the fresh food retail business having been terminated and disposed of during the period - The Group has two operating and reportable segments: manufacturing business (manufacturing, sales, and trading of silver ingots, palladium, and other non-ferrous metals) and new retail jewelry business (design and sales of gold, silver, colored gemstones, and other jewelry products)[14](index=14&type=chunk)[16](index=16&type=chunk) - The fresh food retail business was terminated and disposed of during the period ended June 30, 2025[14](index=14&type=chunk) [Overview of Operating Segments](index=8&type=section&id=Overview%20of%20Operating%20Segments) The Group currently has two operating segments, manufacturing and new retail jewelry, with the fresh food retail business terminated and disposed of in this interim period - The Group has two operating and reportable segments: manufacturing business and new retail jewelry business[14](index=14&type=chunk)[16](index=16&type=chunk) - The fresh food retail business was terminated and disposed of during the period ended June 30, 2025[14](index=14&type=chunk) [Segment Revenue and Results](index=9&type=section&id=Segment%20Revenue%20and%20Results) In H1 2025, manufacturing business external sales were RMB 2,093.4 million with segment results of RMB 36.5 million, while new retail jewelry external sales surged to RMB 236.3 million with segment results significantly improving to RMB 58.2 million Segment Revenue and Results (RMB thousand) | Segment | H1 2025 External Sales | H1 2025 Segment Results | H1 2024 External Sales (Restated) | H1 2024 Segment Results (Restated) | | :--- | :--- | :--- | :--- | :--- | | Manufacturing Business | 2,093,384 | 36,526 | 2,220,488 | 38,980 | | New Retail Jewelry Business | 236,328 | 58,233 | 98,509 | 5,438 | | **Total** | **2,329,712** | **94,759** | **2,318,997** | **44,418** | [Segment Assets and Liabilities](index=11&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, new retail jewelry segment assets were significantly higher than manufacturing, with total assets of RMB 2,120.9 million and total liabilities of RMB 662.8 million Segment Assets and Liabilities (RMB thousand) | Segment | June 30, 2025 Segment Assets | June 30, 2025 Segment Liabilities | December 31, 2024 Segment Assets (Audited) | December 31, 2024 Segment Liabilities (Audited) | | :--- | :--- | :--- | :--- | :--- | | Manufacturing Business | 390,389 | 301,444 | 431,444 | 458,597 | | New Retail Jewelry Business | 1,728,729 | 354,194 | 1,515,465 | 190,811 | | **Total** | **2,119,118** | **655,638** | **1,946,909** | **649,408** | [Other Segment Information](index=12&type=section&id=Other%20Segment%20Information) In H1 2025, continuing operations reported intangible asset amortization of RMB 181 thousand, property, plant and equipment depreciation of RMB 6,916 thousand, and right-of-use asset depreciation of RMB 757 thousand Other Segment Information (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Amortisation of intangible assets | (181) | (182) | | Depreciation of property, plant and equipment | (6,916) | (7,466) | | Depreciation of right-of-use assets | (757) | (1,776) | | Net reversal (provision) for impairment losses | 1,577 | (2,908) | | Write-off of leasehold improvements | (2,710) | – | [Geographical Information](index=13&type=section&id=Geographical%20Information) All of the Group's operations and revenue are generated within China - All of the Group's operations and revenue are generated within China[24](index=24&type=chunk) [Revenue](index=14&type=section&id=Revenue) In H1 2025, the Group's total revenue from continuing operations was RMB 2,329.7 million, with manufacturing contributing RMB 2,093.4 million and new retail jewelry contributing RMB 236.3 million, driven by a 1,058.7% increase in gold product sales Revenue by Product Category (RMB thousand) | Product Category | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | **Manufacturing Business** | | | | Sales of silver ingots | 2,093,384 | 2,220,488 | | **New Retail Jewelry Business** | | | | Sales of gold products | 145,391 | 12,548 | | Sales of silver products | 90,871 | 83,633 | | Sales of gemstones and other jewelry products | 66 | 527 | | Sales of colored gemstones | – | 1,801 | | **Total** | **2,329,712** | **2,318,997** | - Sales of gold products in the new retail jewelry business increased significantly by approximately **1,058.7%** compared to H1 2024[26](index=26&type=chunk) [Income Tax Expense](index=15&type=section&id=Income%20Tax%20Expense) In H1 2025, income tax expense from continuing operations increased to RMB 22.7 million, primarily due to higher PRC corporate income tax provision Income Tax Expense (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | PRC corporate income tax | 22,047 | 2,557 | | Deferred tax | 642 | (585) | | **Total** | **22,689** | **1,972** | - The increase in income tax expense was primarily due to an increase in the provision for PRC corporate income tax for the new retail jewelry business[28](index=28&type=chunk) [Profit for the Period](index=16&type=section&id=Profit%20for%20the%20Period) In H1 2025, profit from continuing operations was RMB 62.8 million, with key deductions including inventory costs, depreciation, amortization, and RMB 18.5 million in share-based payment expenses Profit for the Period (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Cost of inventories recognised as an expense | 2,187,674 | 2,249,028 | | Depreciation of property, plant and equipment | 6,916 | 7,466 | | Depreciation of right-of-use assets | 757 | 1,776 | | Amortisation of intangible assets | 181 | 182 | | Share-based payment expenses | 18,543 | – | [Dividends](index=16&type=section&id=Dividends) The Board resolved not to declare an interim dividend for H1 2025, consistent with the prior year - No dividends were paid, declared, or proposed to ordinary shareholders for H1 2025 and H1 2024[31](index=31&type=chunk) [Earnings Per Share](index=17&type=section&id=Earnings%20Per%20Share) In H1 2025, basic and diluted earnings per share from continuing operations were both RMB 0.02, with profit attributable to owners from continuing operations at RMB 43.4 million Earnings Per Share | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Profit for the period from continuing operations attributable to owners of the Company for the purpose of calculating basic and diluted earnings per share (RMB thousand) | 43,446 | 25,503 | | Profit (loss) for the period from discontinued operations attributable to owners of the Company for the purpose of calculating basic and diluted earnings (loss) per share (RMB thousand) | 11,465 | (4,947) | | Weighted average number of ordinary shares (thousand shares) | 2,284,240 | 1,954,081 | | **Basic and diluted earnings per share (continuing operations)** | **0.02** | **0.01** | [Movements in Property, Plant and Equipment / Right-of-Use Assets / Intangible Assets](index=17&type=section&id=Movements%20in%20Property%2C%20Plant%20and%20Equipment%20%2F%20Right-of-Use%20Assets%20%2F%20Intangible%20Assets) In H1 2025, the Group acquired approximately RMB 81 million in vehicles and leased land and buildings through subsidiary acquisition, and wrote off RMB 2.7 million in leasehold improvements - In H1 2025, the Group purchased vehicles for **RMB 1.1 million** and acquired subsidiaries to obtain leased land and buildings for office premises, valued at **RMB 79.9 million**[33](index=33&type=chunk) - Leasehold improvements with a carrying amount of **RMB 2.7 million** were written off[33](index=33&type=chunk) - Additions to intangible assets included the acquisition of patents for **RMB 20 thousand** and capitalisation of exploration rights for **RMB 5.5 million**[34](index=34&type=chunk) [Trade and Other Receivables](index=18&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, trade and other receivables increased to RMB 178.4 million, with trade receivables from customer contracts at RMB 139.0 million (RMB 122.1 million net of provision), and trade receivables turnover days increasing to 7.0 days Trade and Other Receivables (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables from contracts with customers | 139,028 | 73,601 | | Less: Provision for expected credit losses on trade receivables | (16,885) | (18,462) | | Other receivables, deposits and prepayments | 41,425 | 26,864 | | Recoverable value added tax | 14,247 | 6,572 | | **Total** | **178,369** | **140,542** | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | 0 to 30 days | 119,247 | 45,660 | | 31 to 60 days | 296 | 744 | | 61 to 90 days | 51 | 305 | | Over 90 days | 2,549 | 8,430 | | **Total** | **122,143** | **55,139** | [Net Reversal (Provision) for Impairment Losses under Expected Credit Loss Model](index=19&type=section&id=Net%20Reversal%20%28Provision%29%20for%20Impairment%20Losses%20under%20Expected%20Credit%20Loss%20Model) In H1 2025, continuing operations recorded a net reversal of impairment losses of RMB 1.6 million, compared to a net provision of RMB 2.9 million in the prior year Net Reversal (Provision) for Impairment Losses (RMB thousand) | Indicator | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Net reversal (provision) for impairment losses from continuing operations | 1,577 | (2,908) | [Discontinued Operations](index=20&type=section&id=Discontinued%20Operations) The Group completed the disposal of its fresh food retail business on January 13, 2025, recognizing a gain on disposal of RMB 11.5 million, after incurring a loss of RMB 15.9 million in H1 2024 - The Group completed the disposal of its entire equity interest in the fresh food retail business (Nongmuren Group) on January 13, 2025, for a consideration of **RMB 300 thousand**[40](index=40&type=chunk) Profit (Loss) for the Period from Discontinued Operations (RMB thousand) | Indicator | January 1 to January 13, 2025 | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Loss for the period from discontinued operations | – | (15,888) | | Gain on disposal of subsidiaries | 11,465 | – | | **Profit (loss) for the period from discontinued operations** | **11,465** | **(15,888)** | Assets and Liabilities of Discontinued Operations as of December 31, 2024 (Audited) (RMB thousand) | Indicator | Amount | | :--- | :--- | | Assets classified as held for sale | 29,890 | | Liabilities directly associated with assets classified as held for sale | 97,732 | [Trade and Other Payables](index=25&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to RMB 280.1 million, an increase from year-end 2024, including trade payables of RMB 33.3 million and bills payable of RMB 44.0 million Trade and Other Payables (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables | 33,258 | 19,609 | | Other payables and accrued expenses | 152,731 | 72,604 | | Bills payable | 43,960 | 79,600 | | Value added tax and other taxes payable | 42,743 | 18,974 | | Provision for termination of transfer contracts | 7,413 | 7,413 | | **Total** | **280,105** | **198,200** | - The ageing analysis of trade payables shows that amounts over 90 days increased from **RMB 15.3 million** as of December 31, 2024, to **RMB 22.2 million** as of June 30, 2025[49](index=49&type=chunk) [Bank and Other Borrowings](index=27&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, bank and other borrowings decreased significantly to RMB 263.5 million from RMB 400.9 million at year-end 2024, resulting in a net cash position with a net debt-to-equity ratio of approximately -25.4% Bank and Other Borrowings (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank and other borrowings balance | 263.5 | 400.9 | | Net debt-to-equity ratio | -25.4% | -10.3% | - Borrowings are secured by leased land and buildings, personal guarantees from company directors and their spouses, guarantees from suppliers and independent third parties, and pledges of assets[51](index=51&type=chunk) - Approximately **RMB 112.0 million** bears interest at fixed annual rates ranging from **3.75% to 5.61%**, and **RMB 151.5 million** bears interest at the prime lending rate plus **1.70% to 2.05%** per annum[52](index=52&type=chunk) [Acquisition of Subsidiaries Accounted for as Asset Acquisition](index=27&type=section&id=Acquisition%20of%20Subsidiaries%20Accounted%20for%20as%20Asset%20Acquisition) On May 25, 2025, the Group acquired 100% equity in four target companies for a total consideration of RMB 80 million to obtain leased land and buildings for future office space, accounted for as an asset acquisition - The Group acquired 100% equity interest in four target companies, including Shenzhen Heqingde Investment Development Co., Ltd., for a total consideration of **RMB 80 million**[53](index=53&type=chunk) - The acquisition aims to obtain leased land and buildings for office premises required for the Group's future business development and is accounted for as an asset acquisition[53](index=53&type=chunk) Acquired Assets (RMB thousand) | Acquired Asset | Amount | | :--- | :--- | | Leased land and buildings | 79,895 | | Other receivables | 130 | | Bank balances and cash | 315 | | Other payables | (340) | | Consideration payable | 80,000 | [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, strategic adjustments, segment-specific reviews, and future outlook, highlighting key drivers and challenges [Business Review](index=29&type=section&id=Business%20Review) In H1 2025, macroeconomic uncertainty boosted precious metal demand, leading to significant price increases for gold and silver, prompting the Group to shift its strategic focus to gold and expand upstream through acquisitions, while the fresh food retail business was terminated - Macroeconomic uncertainty, geopolitical instability, and trade tensions drove up demand for precious metals, with gold prices rising from approximately **USD 2,000/ounce** in January 2024 to approximately **USD 3,300/ounce** in June 2025, and silver prices increasing from approximately **USD 24/ounce** to approximately **USD 36/ounce**[55](index=55&type=chunk) - The Group proactively adjusted its business strategy, shifting its strategic focus towards gold, and acquired a **55%** equity interest in Jiangxi Yiding Trade Co., Ltd. to expand its upstream business[55](index=55&type=chunk) - Profit for the period from continuing operations significantly increased by **139.8%** to **RMB 62.8 million**, and net profit attributable to owners of the Company significantly increased by **167.1%** to **RMB 54.9 million**[58](index=58&type=chunk) [Macroeconomic Environment and Strategic Adjustments](index=29&type=section&id=Macroeconomic%20Environment%20and%20Strategic%20Adjustments) In H1 2025, global macroeconomic uncertainty intensified, driving strong demand for precious metals and significant price increases for gold and silver, leading the Group to shift its strategic focus to gold and expand upstream through the acquisition of Jiangxi Yiding - Gold prices rose from approximately **USD 2,000/ounce** in January 2024 to approximately **USD 3,300/ounce** in June 2025, and silver prices increased from approximately **USD 24/ounce** to approximately **USD 36/ounce**[55](index=55&type=chunk) - The Group proactively adjusted its business strategy, shifting its strategic focus towards gold, and jointly acquired a **55%** equity interest in Jiangxi Yiding Trade Co., Ltd. with Everest Gold Group on June 26, 2025, to expand more upstream businesses[55](index=55&type=chunk) [Manufacturing Business](index=31&type=section&id=Manufacturing%20Business) The manufacturing segment, primarily producing silver ingots and palladium, saw external sales decrease by 5.7% to RMB 2,093.4 million and segment profit decline by 6.3% to RMB 36.5 million in H1 2025, mainly due to reduced revenue - The manufacturing business segment primarily focuses on producing high-quality silver ingots for industrial and trading purposes, being one of the leading silver producers in China[61](index=61&type=chunk) Manufacturing Business Performance (RMB million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | External Sales | 2,093.4 | 2,220.5 | -5.7% | | Segment Profit | 36.5 | 39.0 | -6.3% | [New Retail Jewelry Business](index=32&type=section&id=New%20Retail%20Jewelry%20Business) The new retail jewelry business achieved a 139.9% surge in external sales to RMB 236.3 million and significantly improved segment results to RMB 58.2 million in H1 2025, driven by the strategic sale of low-cost gold inventory and rising gold prices - External sales of the new retail jewelry business significantly increased by **139.9%** to **RMB 236.3 million**, accounting for **10.1%** of the Group's total revenue[62](index=62&type=chunk) - Segment results significantly improved to **RMB 58.2 million**, primarily benefiting from the proactive sale of existing low-cost gold inventory, with this positive impact partially offset by share-based payment expenses of approximately **RMB 18.5 million**[62](index=62&type=chunk) - Market demand for physical gold, especially investment products, significantly increased, leading to a substantial rise in sales of the Group's high-ticket, low-processing-fee investment gold bar products and a significant increase in gross margin[63](index=63&type=chunk) [Lab-Grown Diamond Brand SISI](index=33&type=section&id=Lab-Grown%20Diamond%20Brand%20SISI) The Group reduced marketing expenses for its lab-grown diamond brand SISI due to market oversupply and intense competition in China, and will carefully consider future investment and sales strategies to maintain profitability and liquidity - The Group reduced marketing expenses for its lab-grown diamond brand SISI[65](index=65&type=chunk) - The lab-grown diamond industry in China is relatively nascent, with market oversupply leading to price declines and intense retail market price competition[65](index=65&type=chunk) - The Group will carefully consider its investment and sales strategies for the SISI brand to maintain business profitability and ample liquidity[65](index=65&type=chunk) [Online Sales Channels](index=34&type=section&id=Online%20Sales%20Channels) The Group promotes and sells jewelry products through third-party platforms, including TV and video shopping channels, becoming a core supplier for top-tier TV stations, with short-video marketing and KOL endorsements now standard for brand promotion - The Group promotes and sells jewelry products through third-party platforms, including TV and video shopping channels, becoming a core supplier for gold and silver jewelry categories across all first-tier TV stations[66](index=66&type=chunk) - Short-video marketing and KOL endorsements have become standard for brand marketing, with content serving as the core of marketing, sales, and operations[66](index=66&type=chunk) [Offline Retail and Service Experience Channels](index=34&type=section&id=Offline%20Retail%20and%20Service%20Experience%20Channels) The Group maintains a jewelry showroom in Shenzhen Shuibei for wholesale clients and franchisees, while adjusting its offline retail network by no longer expanding CSmall experience stores, retaining only two franchised CSmall stores as of June 30, 2025 - The Group maintains a jewelry showroom in Shenzhen Shuibei, serving as an exhibition and sales interaction platform for wholesale customers and franchisees[67](index=67&type=chunk) - The Group adjusted its offline retail network layout, no longer expanding its original CSmall experience stores, and as of June 30, 2025, only two franchised CSmall experience stores are retained[68](index=68&type=chunk) [Development of Mineral Exploration Business](index=35&type=section&id=Development%20of%20Mineral%20Exploration%20Business) The Group is actively expanding its mineral exploration business in Tibet through acquisitions, with the Shannan exploration area showing potential for 20-25 tons of gold and the Gudui mining area's gold-antimony polymetallic deposit offering a new profit driver in semiconductor materials - The Group, through the acquisition of a **51%** equity interest in Jiangxi Letong, holds a **100%** equity interest in Tibet Longtianyong Mining Co., Ltd., which holds a mineral resource general survey and exploration permit for a **28.88 square kilometer** area in the Shannan exploration zone[69](index=69&type=chunk) - Multiple gold mineralization zones have been discovered in the Shannan exploration area, with an estimated inferred ore volume of approximately **2,100,000 tons** and an inferred gold metal content of approximately **5,800 kg**, with an average gold grade of approximately **2.77 grams/ton**, and a preliminary estimated prospective gold metal content of approximately **20 to 25 tons**[69](index=69&type=chunk) - The exploration stage of the prospecting right has been upgraded from "general survey" to "detailed survey", and the Gudui mining area's gold-antimony polymetallic deposit is a typical gold-antimony deposit, where the associated antimony revenue is expected to become a significant profit growth point for the project and enter the core semiconductor materials sector[70](index=70&type=chunk) - The Group, in conjunction with Everest Gold Group, acquired a **55%** equity interest in Jiangxi Yiding Trade Co., Ltd., which holds a **100%** equity interest in Huaye Mining Development Co., Ltd. in Xigaze City, Tibet, primarily engaged in lead-zinc exploration, with the mining area located in the core of the Gangdese metallogenic belt, possessing rich polymetallic deposit potential[71](index=71&type=chunk) [Discontinued Operations](index=37&type=section&id=Discontinued%20Operations) The Group completed the disposal of its fresh food retail business (Nongmuren platform) on January 13, 2025, realizing a gain of approximately RMB 11.5 million, to refocus management attention and resources on its core gold and silver jewelry retail business - The Group completed the disposal of its entire **51%** equity interest in the fresh food retail business (Nongmuren platform) on January 13, 2025[73](index=73&type=chunk) - The disposal generated a gain of approximately **RMB 11.5 million**[73](index=73&type=chunk) - The disposal aims to enable the Group to focus management attention and financial and human resources on its core gold and silver jewelry retail business[73](index=73&type=chunk) [Outlook](index=37&type=section&id=Outlook) In 2025, global macroeconomic uncertainty is expected to persist, driving demand for precious metals as safe-haven and industrial assets, prompting the Group to focus on its core gold and silver jewelry business, optimize structure, and expand strategically to become a benchmark in the gold sector, potentially entering the RWA market - Global macroeconomic uncertainty is expected to persist in 2025, with continued growth in demand for precious metals as traditional safe-haven assets and for industrial applications[74](index=74&type=chunk) - The Group will further focus on its core gold and silver jewelry business segment, continuously optimize its business structure, and create more stable and sustainable revenue streams for shareholders by strengthening product R&D innovation and diversifying channel expansion[75](index=75&type=chunk) - Through strategic expansion of resource reserves (such as the acquisitions of Jiangxi Letong and Jiangxi Yiding), the Group is poised for leapfrog development, striving to become a benchmark enterprise in the gold sector[75](index=75&type=chunk) - The Group is closely monitoring the development trend of Real World Assets (RWA) and does not rule out the possibility of entering the gold and precious metals RWA market at an opportune time, leveraging its integrated upstream and downstream capabilities and experience in operating precious metals trading platforms[77](index=77&type=chunk) [Financial Review](index=40&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance, including revenue, cost of sales, gross profit, expenses, and liquidity, for the interim period [Revenue](index=40&type=section&id=Revenue) In H1 2025, the Group's continuing operations revenue was RMB 2,329.7 million, a slight 0.5% increase from H1 2024, with manufacturing contributing 89.9% and new retail jewelry 10.1% Revenue by Segment (RMB thousand) | Indicator | H1 2025 | % of Total | H1 2024 (Restated) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Manufacturing Business (Sales of silver ingots) | 2,093,384 | 89.9% | 2,220,488 | 95.8% | | New Retail Jewelry Business (Sales of gold, silver, colored gemstones and gemstones and other jewelry products) | 236,328 | 10.1% | 98,509 | 4.2% | | **Total** | **2,329,712** | **100.0%** | **2,318,997** | **100.0%** | [Manufacturing Business Segment](index=41&type=section&id=Manufacturing%20Business%20Segment) The manufacturing business segment's external sales of silver ingots decreased by approximately 5.7% to RMB 2,093.4 million in H1 2025 from RMB 2,220.5 million in H1 2024 - External sales of silver ingots by the manufacturing business segment decreased by approximately **5.7%** year-on-year to **RMB 2,093.4 million**[81](index=81&type=chunk) [New Retail Jewelry Business Segment](index=41&type=section&id=New%20Retail%20Jewelry%20Business%20Segment) The new retail jewelry business segment's sales surged by 139.9% to RMB 236.3 million, primarily driven by a 1,058.7% increase in gold product sales due to rising gold prices and strategic sales of low-cost inventory - Sales of the new retail jewelry business segment significantly increased by approximately **139.9%** year-on-year to **RMB 236.3 million**[82](index=82&type=chunk) - The increase was primarily due to a significant increase of approximately **1,058.7%** in gold product sales, benefiting from a substantial rise in gold prices and the proactive sale of existing low-cost inventory[82](index=82&type=chunk) [Cost of Sales](index=41&type=section&id=Cost%20of%20Sales) In H1 2025, cost of sales decreased by 2.7% to approximately RMB 2,187.7 million, mainly due to the new retail jewelry business strategically utilizing existing low-cost gold inventory - Cost of sales for H1 2025 was approximately **RMB 2,187.7 million**, representing a year-on-year decrease of approximately **2.7%**[84](index=84&type=chunk) - The decrease in cost of sales was primarily due to the new retail jewelry business strategically utilizing existing low-cost gold inventory to fulfill customer orders, rather than procuring at current higher market prices[84](index=84&type=chunk) [Gross Profit and Gross Margin](index=42&type=section&id=Gross%20Profit%20and%20Gross%20Margin) In H1 2025, gross profit significantly increased by 103.0% to RMB 142.0 million, with the overall gross margin improving from 3.0% to 6.1%, primarily driven by increased gold product sales from low-cost inventory and rising gold prices in the new retail jewelry business Gross Profit and Gross Margin (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Gross Profit | 142.0 | 70.0 | 103.0% | | Gross Margin | 6.1% | 3.0% | +3.1pp | - The increase in gross profit was primarily due to a significant increase in gold product sales in the new retail jewelry business, with most gold products sold from low-cost inventory, coupled with rising gold prices, leading to a significant increase in gross margin[85](index=85&type=chunk) [Selling and Distribution Expenses](index=42&type=section&id=Selling%20and%20Distribution%20Expenses) In H1 2025, selling and distribution expenses increased by 32.9% to RMB 11.9 million, mainly due to a substantial increase in gold product sales within the new retail jewelry business Selling and Distribution Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 11.9 | 9.0 | 32.9% | - The increase in selling and distribution expenses was primarily due to a significant increase in gold product sales in the new retail jewelry business segment[86](index=86&type=chunk) [Administrative Expenses](index=43&type=section&id=Administrative%20Expenses) In H1 2025, administrative expenses increased by 108.1% to RMB 41.4 million, primarily due to share-based payment expenses of approximately RMB 18.5 million incurred by Everest Gold Group Administrative Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Administrative Expenses | 41.4 | 19.9 | 108.1% | - The increase in administrative expenses was primarily due to share-based payment expenses of approximately **RMB 18.5 million** incurred by Everest Gold Group[88](index=88&type=chunk) [Income Tax Expense](index=43&type=section&id=Income%20Tax%20Expense) In H1 2025, income tax expense increased to RMB 22.7 million, mainly due to increased provision for PRC corporate income tax in the new retail jewelry business Income Tax Expense (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Income Tax Expense | 22.7 | 2.0 | - The increase in income tax expense was primarily due to an increase in the provision for PRC corporate income tax for the new retail jewelry business[89](index=89&type=chunk) [Profit Attributable to Owners of the Company](index=43&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) In H1 2025, profit attributable to owners of the Company from continuing operations increased by 70.4% to RMB 43.4 million, primarily due to improved overall revenue and profitability Profit Attributable to Owners of the Company from Continuing Operations (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company from Continuing Operations | 43.4 | 25.5 | 70.4% | - The profit growth was primarily due to the improvement in overall revenue and profitability[90](index=90&type=chunk) [Discontinued Operations](index=43&type=section&id=Discontinued%20Operations) The Group completed the disposal of the Nongmuren platform business on January 13, 2025, realizing a gain of approximately RMB 11.5 million, to refocus management attention and resources on core businesses - The Group completed the disposal of the Nongmuren platform business on January 13, 2025, realizing a gain on disposal of approximately **RMB 11.5 million**[91](index=91&type=chunk) - The disposal aims to enable the Group to focus management attention and its financial and human resources on its core jewelry and metals businesses[91](index=91&type=chunk) [Turnover Days of Inventories, Trade Receivables and Trade Payables](index=44&type=section&id=Turnover%20Days%20of%20Inventories%2C%20Trade%20Receivables%20and%20Trade%20Payables) In H1 2025, inventory turnover days decreased to 91.8 days, trade receivables turnover days increased to 7.0 days, and trade payables turnover days decreased to 2.2 days, primarily influenced by increased sales and the nature of the new retail jewelry business Turnover Days | Indicator | H1 2025 | Year Ended December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Inventory Turnover Days | 91.8 days | 95.5 days | Decrease | | Trade Receivables Turnover Days | 7.0 days | 4.7 days | Increase | | Trade Payables Turnover Days | 2.2 days | 3.1 days | Decrease | - The decrease in inventory turnover days was primarily due to increased sales in the new retail jewelry business segment, leading to faster inventory circulation[92](index=92&type=chunk) - The increase in trade receivables turnover days and decrease in trade payables turnover days were primarily influenced by the increase in sales of the new retail jewelry business and the nature of its business[92](index=92&type=chunk) [Bank and Other Borrowings](index=44&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, bank and other borrowings significantly decreased to RMB 263.5 million from RMB 400.9 million at year-end 2024, resulting in a net cash position with a net debt-to-equity ratio of approximately -25.4% Bank and Other Borrowings (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank and other borrowings balance | 263.5 | 400.9 | | Net debt-to-equity ratio | -25.4% | -10.3% | - Borrowings are secured by company guarantees, personal guarantees from directors, guarantees from suppliers and independent third parties, and pledges of certain assets[93](index=93&type=chunk) [Pledge of Assets](index=45&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged assets with a total carrying value of approximately RMB 81.6 million as security for bills payable and bank borrowings, including property, plant and equipment, leased land, and pledged bank deposits Pledged Assets (RMB thousand) | Pledged Asset | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Property, plant and equipment | 47,134 | 49,948 | | Leased land (included in right-of-use assets) | 14,938 | 15,155 | | Pledged bank deposits | 19,500 | 39,800 | | **Total** | **81,572** | **104,903** | [Capital Expenditure](index=45&type=section&id=Capital%20Expenditure) In H1 2025, capital expenditure primarily included RMB 1.1 million for vehicle purchases and RMB 79.9 million for leased land and buildings acquired through subsidiaries, totaling approximately RMB 81 million - In H1 2025, the Group's capital expenditure was primarily for the purchase of vehicles of approximately **RMB 1.1 million** and the acquisition of leased land and buildings through the acquisition of subsidiaries of approximately **RMB 79.9 million**[96](index=96&type=chunk) - Capital expenditure was funded by internal financial resources, existing cash, operating surpluses, and bank and other borrowings[96](index=96&type=chunk) [Capital Commitments](index=45&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital expenditure was approximately RMB 5.5 million for the acquisition of a non-wholly owned subsidiary - As of June 30, 2025, the Group's contracted but unprovided capital expenditure was approximately **RMB 5.5 million** for the acquisition of a non-wholly owned subsidiary[97](index=97&type=chunk) [Contingent Liabilities](index=45&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no contingent liabilities - As of June 30, 2025, and December 31, 2024, the Group had **no contingent liabilities**[98](index=98&type=chunk) [Employees](index=46&type=section&id=Employees) As of June 30, 2025, the Group employed 173 staff, with total remuneration of RMB 10.8 million for H1 2025, and compensation arrangements align with current laws, qualifications, and market conditions Employee Information | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 173 | 178 | | Total Remuneration (H1 2025) | RMB 10.8 million | RMB 12.4 million (H1 2024) | - The Group's remuneration arrangements are in line with current laws, employee qualifications and experience, and overall market conditions, with bonuses linked to financial performance and individual performance[99](index=99&type=chunk) [Liquidity and Financial Resources](index=46&type=section&id=Liquidity%20and%20Financial%20Resources) In H1 2025, the Group maintained a robust liquidity position, funded primarily by internal resources and bank borrowings, with increases in bank balances and cash, net current assets, and total assets less current liabilities Liquidity and Financial Resources (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank balances and cash | 633.8 | 526.3 | | Net current assets | 1,253.6 | 1,090.4 | | Total assets less current liabilities | 1,459.4 | 1,220.1 | - The Group is primarily funded by internal resources and bank and other borrowings[100](index=100&type=chunk) [Interim Dividend](index=46&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for H1 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for H1 2025 (H1 2024: nil)[101](index=101&type=chunk) [Other Information](index=46&type=section&id=Other%20Information) This section covers material investments, significant acquisitions and disposals, post-reporting period events, corporate governance, and other statutory disclosures [Material Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Plans for Future Material Investments or Capital Asset Acquisitions](index=46&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures%2C%20and%20Plans%20for%20Future%20Material%20Investments%20or%20Capital%20Asset%20Acquisitions) The Group completed the disposal of 51% equity in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. on January 13, 2025, and a joint acquisition of Jiangxi Yiding Trade Co., Ltd. was completed post-reporting period, with no other material investments or acquisition plans - The Group completed the disposal of a **51%** equity interest in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. (which controls the fresh food retail business) on January 13, 2025[102](index=102&type=chunk) - During the reporting period, a subsidiary of the Group and Everest Gold Group jointly entered into an equity transfer agreement to acquire a portion of the equity interest in Jiangxi Yiding Trade Co., Ltd., with this transaction completed after the reporting period[103](index=103&type=chunk) - Save as disclosed above, as of the date of this announcement, the Group did not hold any material investments, nor did it undertake any material acquisitions or disposals of subsidiaries, associates, and joint ventures, and had no other plans for any material investments or capital asset acquisitions[103](index=103&type=chunk) [Significant Events After Reporting Period](index=47&type=section&id=Significant%20Events%20After%20Reporting%20Period) Post-reporting period, the Group completed the joint acquisition of 55% equity in Jiangxi Yiding Trade Co., Ltd. on July 18, 2025, and entered into subscription agreements for the proposed allotment and issuance of 460 million subscription shares at HKD 0.45 per share, which is ongoing - On July 18, 2025, the Group completed the joint acquisition of a **55%** equity interest in Jiangxi Yiding Trade Co., Ltd., which holds a **100%** equity interest in Huaye Mining Development Co., Ltd. in Xigaze City, Tibet[104](index=104&type=chunk) - On July 14, 2025, the Company entered into subscription agreements with eight subscribers for the proposed allotment and issuance of a total of **460,000,000** subscription shares at **HKD 0.45** per subscription share, and the subscription is ongoing[104](index=104&type=chunk) [Corporate Governance Code](index=48&type=section&id=Corporate%20Governance%20Code) The Company adheres to the Corporate Governance Code in Appendix C1 of the Listing Rules, complying with its provisions in H1 2025, except for the combined roles of Chairman and Chief Executive Officer - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules and has complied with the code provisions during H1 2025[106](index=106&type=chunk) - There is one deviation: the roles of Chairman and Chief Executive Officer are combined and held by Mr. Chen Wantian, and the Board will consider separating these roles at an appropriate time[106](index=106&type=chunk) [Standard Code for Securities Transactions](index=48&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, with all directors confirming compliance during H1 2025 - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[107](index=107&type=chunk) - All Directors, after specific enquiry, confirmed that they have complied with the required standards for dealing in securities as set out in the Standard Code during H1 2025[107](index=107&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=48&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025[108](index=108&type=chunk) [Audit Committee](index=49&type=section&id=Audit%20Committee) The Audit Committee reviewed the Group's financial reporting, risk management, internal controls, and the H1 2025 unaudited condensed consolidated financial statements, confirming their compliance with applicable accounting standards, Listing Rules, and legal requirements, with adequate disclosures - The Audit Committee has reviewed the Group's financial reporting process, risk management and internal control systems, and the unaudited condensed consolidated financial statements for H1 2025[109](index=109&type=chunk) - The Audit Committee is of the opinion that the financial statements were prepared in compliance with applicable accounting standards, the Listing Rules, and legal requirements, and that adequate disclosures have been made[109](index=109&type=chunk) [Acknowledgement](index=49&type=section&id=Acknowledgement) The Board extends its gratitude to management and all employees for their hard work and contributions, and to shareholders and customers for their continued support - The Board expresses its gratitude to the management and all staff for their hard work and contributions, and to the shareholders and customers for their continued support to the Group[110](index=110&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=49&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement is published on the Company's and HKEX websites, and the 2025 interim report will be dispatched to shareholders requesting printed copies and published on the same websites in due course - This announcement has been published on the Company's website (www.chinasilver.hk) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)[111](index=111&type=chunk) - The Company's 2025 interim report will be dispatched to shareholders who request printed copies and published on the same websites in due course[111](index=111&type=chunk)

[Interim Results Summary](index=1&type=section&id=2025%20Interim%20Results%20Summary) The group achieved significant performance growth in H1 2025, with revenue up 139.9% and profit attributable to owners turning profitable, driven by surging gold product sales and higher gross margins [H1 2025 Performance Overview](index=1&type=section&id=H1%202025%20Performance%20Overview) The group achieved significant H1 2025 performance growth, with revenue up 139.9% and profit attributable to owners turning profitable, driven by surging gold product sales and disposal gains Performance Highlights | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Revenue | 236.3 | 98.5 | 139.9% | | Profit from Continuing Operations | 33.1 | 1.3 | 2,520.2% | | Profit (Loss) Attributable to Owners | 75.3 | (11.0) | 785.0% | | Gold Product Sales Growth | - | - | 1,058.7% | | Jewelry New Retail Business Gross Profit Growth | - | - | 276.1% | - Net loss significantly reversed to net profit, primarily due to a substantial increase in **gold product sales of approximately 1,058.7%**, coupled with a significant rise in gold prices and lower procurement/processing costs for inventory products sold, leading to a substantial increase in gold product sales gross margin, and an overall **gross profit increase of approximately 276.1%** in the jewelry new retail business[2](index=2&type=chunk) - The disposal of the fresh food retail business recorded a gain of approximately **RMB 41.2 million** for the group[3](index=3&type=chunk) - Share-based payment expenses of approximately **RMB 18.5 million** were recognized from the grant of share options to employees, partially offsetting the aforementioned profit growth[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements present the group's financial performance and position, showing significant revenue growth, profit turnaround, and asset expansion [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the group's revenue from continuing operations significantly increased, gross profit substantially improved, and loss attributable to owners successfully turned into profit, mainly due to strong gold product sales and disposal gains from discontinued operations Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue (Continuing Operations) | 236,328 | 98,509 | | Cost of Sales | (136,495) | (71,962) | | Gross Profit | 99,833 | 26,547 | | Profit for the Period from Continuing Operations | 33,093 | 1,263 | | Loss for the Period from Discontinued Operations | – | (15,888) | | Gain on Disposal of Subsidiaries | 41,246 | – | | Total Profit (Loss) and Comprehensive Income (Expense) for the Period | 74,339 | (14,625) | | Profit (Loss) for the Period Attributable to Owners of the Company | 75,254 | (10,986) | | Basic Earnings (Loss) Per Share (Continuing and Discontinued Operations) | 0.061 | (0.009) | | Basic Earnings Per Share (Continuing Operations) | 0.027 | 0.001 | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's non-current and current assets both increased, with significant growth in property, plant and equipment, intangible assets, and bank balances and cash. Current liabilities also increased, but net current assets and total equity maintained robust growth Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 101,912 | 20,583 | | Property, Plant and Equipment | 83,979 | 7,424 | | Intangible Assets | 11,000 | 5,469 | | Current Assets | 1,662,973 | 1,558,900 | | Inventories | 929,074 | 973,502 | | Trade and Other Receivables | 164,929 | 93,158 | | Bank Balances and Cash | 532,186 | 429,290 | | Current Liabilities | 356,821 | 291,022 | | Trade and Other Payables | 215,667 | 72,639 | | Bank Borrowings | 88,500 | 89,000 | | Net Current Assets | 1,306,152 | 1,267,878 | | Equity Attributable to Owners of the Company | 1,407,098 | 1,313,301 | | Total Equity | 1,408,035 | 1,288,257 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations on the basis of preparation, accounting policies, segment information, revenue, taxation, profit components, and significant asset and liability changes [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) These condensed consolidated financial statements are prepared in accordance with IAS 34 and Listing Rules, reflecting the company's name change to Mount Everest Gold Group Company Limited and the reclassification of fresh food retail business as discontinued operations due to its disposal - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[12](index=12&type=chunk) - The company's English name changed from 'CSMall Group Limited' to **'Mount Everest Gold Group Company Limited'**, and its Chinese name from '金貓銀貓集團有限公司' to '珠峰黃金集團有限公司', effective April 29, 2025[12](index=12&type=chunk) - The group completed the disposal of its fresh food retail business on January 13, 2025, with the financial results of the disposed group presented as 'discontinued operations' in the condensed consolidated statement of profit or loss and cash flow statement, and comparative figures for H1 2024 have been restated[13](index=13&type=chunk) - The application of revised International Financial Reporting Standards during this interim period, such as the amendment to IAS 21 'Lack of Exchangeability', did not have a significant impact on the group's financial position and performance[15](index=15&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) Following the disposal of the fresh food retail business, the group now has only one operating and reportable segment, the jewelry new retail business, with all revenue generated from China - The group currently has only one operating and reportable segment, the jewelry new retail business, primarily engaged in the design and sale of gold, silver, colored gemstones, and other jewelry products in China[16](index=16&type=chunk) - The group's fresh food retail segment business was discontinued and disposed of during the period ended June 30, 2025[16](index=16&type=chunk) - All of the group's revenue is generated in China[17](index=17&type=chunk) [Revenue](index=9&type=section&id=Revenue) In H1 2025, the group's revenue from continuing operations significantly increased by 139.9%, primarily driven by a 1,058.7% surge in gold product sales, with gold products' contribution to total revenue rising from 12.7% to 61.5% Revenue by Product Category | Product Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of Gold Products | 145,391 | 12,548 | | Sales of Silver Products | 90,871 | 83,633 | | Sales of Gemstones and Other Jewelry Products | 66 | 527 | | Sales of Colored Gemstones | – | 1,801 | | **Total** | **236,328** | **98,509** | - Sales of gold products significantly increased by approximately **1,058.7%** compared to H1 2024, becoming the primary driver of revenue growth[20](index=20&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) In H1 2025, the group's income tax expense from continuing operations significantly increased, primarily due to higher taxable profit for the period, with the applicable statutory corporate income tax rate in China being 25% Income Tax Expense Details | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Corporate Income Tax (Current Period) | 22,047 | 2,557 | | Deferred Tax | 550 | (949) | | **Total** | **22,597** | **1,608** | - The group's PRC subsidiaries are subject to PRC corporate income tax at a statutory rate of **25%**[21](index=21&type=chunk) [Composition of Profit for the Period](index=10&type=section&id=Composition%20of%20Profit%20for%20the%20Period) In H1 2025, the composition of the group's profit from continuing operations included cost of inventories, depreciation of property, plant and equipment, depreciation of right-of-use assets, bank interest income, net exchange gains, write-off of leasehold improvements, short-term lease expenses, and share-based payment expenses Profit Components | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Recognized as Expense | 136,495 | 71,962 | | Depreciation of Property, Plant and Equipment | 1,821 | 1,750 | | Depreciation of Right-of-Use Assets | 206 | 1,510 | | Bank Interest Income | (710) | (544) | | Net Exchange (Gains) Losses | (213) | 295 | | Write-off of Leasehold Improvements | 2,710 | – | | Expenses Relating to Short-term Leases of Office Premises and Retail Stores | 1,902 | 83 | | Share-based Payment Expenses | 18,543 | – | [Dividends](index=10&type=section&id=Dividends) The company's board of directors resolved not to declare any interim dividend for H1 2025, consistent with the same period last year - No dividends were paid, declared, or proposed to ordinary shareholders of the company during this interim period (for the six months ended June 30, 2024: nil)[24](index=24&type=chunk) [Earnings (Loss) Per Share](index=11&type=section&id=Earnings%20(Loss)%20Per%20Share) In H1 2025, basic earnings per share attributable to owners of the company turned from loss to profit, mainly influenced by profit growth from continuing operations and disposal gains from discontinued operations Earnings Per Share | Metric | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings (Loss) Per Share (Continuing and Discontinued Operations) | 0.061 | (0.009) | | Basic Earnings Per Share (Continuing Operations) | 0.027 | 0.001 | | Weighted Average Number of Ordinary Shares for Basic Earnings Per Share (thousand shares) | 1,237,875 | 1,237,875 | - Diluted earnings (loss) per share for the six months ended June 30, 2025 and 2024 are not presented as there were no potential dilutive ordinary shares outstanding during these periods[26](index=26&type=chunk) [Asset Changes](index=11&type=section&id=Asset%20Changes) During this interim period, the group invested in property, plant and equipment and intangible assets, including the acquisition of office premises and exploration rights, while trade receivables increased, but net reversal of expected credit loss provision was recognized - During this interim period, the group purchased a vehicle for **RMB 1,133,000** and leased land and buildings (through acquisition of a subsidiary) for **RMB 79,895,000** as office premises to support future business development[27](index=27&type=chunk) - New intangible assets include the capitalization of exploration rights of **RMB 5,531,000**[27](index=27&type=chunk) Trade and Other Receivables | Trade and Other Receivables | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables from Contracts with Customers | 138,956 | 73,529 | | Less: Provision for Expected Credit Losses on Trade Receivables | (16,813) | (18,390) | | **Net** | **122,143** | **55,139** | | Other Receivables, Deposits and Prepayments | 28,085 | 24,528 | | Prepayments to Suppliers | 353 | 6,126 | | Recoverable Value Added Tax | 14,247 | 6,572 | | Refundable Lease Deposits | 101 | 793 | | **Total** | **164,929** | **93,158** | - A net reversal of impairment loss (provision) of **RMB 1,577 thousand** was recognized for trade receivables (H1 2024: provision of RMB 2,908 thousand)[30](index=30&type=chunk) [Discontinued Operations](index=13&type=section&id=Discontinued%20Operations) The group completed the disposal of its fresh food retail business segment on January 13, 2025, which generated a gain of RMB 41.2 million and resulted in the reclassification of related assets and liabilities as held for sale - The group completed the disposal of its entire equity interest in Shenzhen Xiansheng (fresh food retail business segment) on January 13, 2025, for a consideration of **RMB 300,000**[31](index=31&type=chunk) Profit (Loss) from Discontinued Operations | Item | January 1 to January 13, 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period from Discontinued Operations | – | (15,888) | | Gain on Disposal of Subsidiaries | 41,246 | – | | Profit (Loss) for the Period from Discontinued Operations | 41,246 | (15,888) | Assets and Liabilities Classified as Held for Sale | Assets and Liabilities Classified as Held for Sale as of December 31, 2024 (RMB thousand) | | :--- | :--- | | Property, Plant and Equipment | 407 | | Right-of-Use Assets | 1,362 | | Goodwill | 3,972 | | Intangible Assets | 4,647 | | Inventories | 556 | | Trade and Other Receivables | 18,460 | | Bank Balances and Cash | 474 | | Trade and Other Payables | (61,174) | | Amount Due to a Non-controlling Interest | (22,978) | | Lease Liabilities | (4,419) | | Tax Liabilities | (1,161) | | Bank Borrowings | (8,000) | | **Net Liabilities Disposed of** | **(67,842)** | - The gain on disposal of subsidiaries was **RMB 41,246 thousand**, with a net cash outflow of **RMB 174 thousand**[38](index=38&type=chunk) [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the group's trade and other payables significantly increased, mainly due to higher consideration payable for subsidiary acquisitions and amounts due to fellow subsidiaries, with historical context provided for the provision for termination of transfer contracts Trade and Other Payables Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 32,953 | 20,456 | | Other Payables and Accrued Expenses | 133,606 | 26,473 | | Value Added Tax and Other Taxes Payable | 41,695 | 18,297 | | Provision for Termination of Transfer Contracts | 7,413 | 7,413 | | **Total** | **215,667** | **72,639** | - The balance of other payables and accrued expenses includes consideration payable for the acquisition of subsidiaries of **RMB 80,000,000**[40](index=40&type=chunk) - The aging analysis of trade payables shows a larger proportion of amounts over 90 days, but the overall credit period generally ranges from **1 to 90 days**[41](index=41&type=chunk) [Bank Borrowings](index=20&type=section&id=Bank%20Borrowings) As of June 30, 2025, the group's total bank borrowings slightly decreased, primarily secured by personal guarantees, corporate guarantees, and certain assets, bearing interest at fixed and floating rates Bank Borrowings Details | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Bank Facilities | 88,500 | 105,200 | | Bank Borrowings Utilized | 88,500 | 89,000 | | Borrowings at Fixed Annual Interest Rate | 8,500 (3.75%) | 9,000 (4.25%) | | Borrowings at Floating Annual Interest Rate | 80,000 (Prime Lending Rate plus 1.70%) | 80,000 (Prime Lending Rate plus 1.85%) | - Bank borrowings are secured and/or guaranteed by personal guarantees provided by Mr. Chen Wantian, a director of China Silver Group, and his spouse, Mr. Qian Pengcheng, a director of the company, a supplier, and an independent third party, as well as corporate guarantees from certain assets, a subsidiary, and a fellow subsidiary[42](index=42&type=chunk) [Acquisition of Subsidiaries Accounted for as Asset Acquisition](index=21&type=section&id=Acquisition%20of%20Subsidiaries%20Accounted%20for%20as%20Asset%20Acquisition) The group completed the acquisition of 100% equity interest in four target companies on May 25, 2025, for a total consideration of RMB 80,000,000, aiming to acquire leased land and buildings for future office premises, with the transaction accounted for as an asset acquisition - Shenzhen Guoyintongbao Co., Ltd., an indirect wholly-owned subsidiary of the group, acquired **100% equity interest** in four target companies, including Shenzhen Heqingde Investment Development Co., Ltd., for a total consideration of **RMB 80,000,000**[44](index=44&type=chunk) - The acquisition aims to obtain leased land and buildings for the group's future business development office premises, and the transaction has been accounted for as an asset acquisition[44](index=44&type=chunk) Identifiable Assets and Liabilities from Acquisition | Identifiable Assets and Liabilities Arising from the Transaction (RMB thousand) | | :--- | :--- | | Leased Land and Buildings | 79,895 | | Other Receivables | 130 | | Bank Balances and Cash | 315 | | Other Payables | (340) | | Consideration Payable | 80,000 | [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the group's business performance, segment operations, sales channels, new exploration initiatives, discontinued operations, future outlook, and financial performance [Business Review](index=22&type=section&id=Business%20Review) In H1 2025, the group achieved substantial growth in both revenue and net profit, successfully turning losses into profits, primarily due to a strategic shift towards gold and entry into upstream gold resources, demonstrating strong competitiveness amidst global macroeconomic uncertainties Business Performance Summary | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Overall Revenue | 236.3 | 98.5 | 139.9% | | Gold Product Sales Growth | - | - | 1,058.7% | | Contribution of Gold Products to Sales Revenue | 61.5% | 12.7% | - | | Net Profit (Loss) Attributable to Owners of the Company | 75.3 | (11.0) | 785.0% | | Profit from Continuing Operations | 33.1 | 1.3 | 2,520.2% | - The group rapidly adjusted its strategy, shifting its strategic focus to gold and officially entering the upstream gold resource sector, significantly enhancing market competitiveness[46](index=46&type=chunk) - Global macroeconomic uncertainties pushed up gold prices, with international gold prices continuously rising, leading to a boom in the precious metals market[47](index=47&type=chunk) [Jewelry New Retail Business Segment](index=23&type=section&id=Jewelry%20New%20Retail%20Business%20Segment) Driven by strong gold price trends, the group's investment-grade gold bar product sales significantly increased in H1, leading to substantial growth in gold product gross margin due to low-cost inventory. Concurrently, the group reduced marketing expenses for its lab-grown diamond brand SISI to maintain profitability and liquidity - The strong trend in gold prices reinforced investors' confidence in gold's safe-haven and value-preserving functions, leading to a significant increase in market demand for physical gold, especially investment-grade products[48](index=48&type=chunk) - The group's sales of high average transaction value, low processing fee investment gold bar products significantly increased in H1, and due to most gold products sold being from inventory with lower procurement and/or processing costs, coupled with a significant rise in gold prices, the **gross margin on gold product sales substantially increased**[48](index=48&type=chunk) - The group reduced marketing expenses for its lab-grown diamond brand SISI compared to previous years, as oversupply in China's lab-grown diamond market led to price declines, aiming to maintain business profitability and ample liquidity amidst macroeconomic challenges[49](index=49&type=chunk) [Sales Channels](index=24&type=section&id=Sales%20Channels) The group significantly enhanced brand awareness and sales performance online through TV and video shopping channels, short-video marketing, and KOL endorsements. Offline, it serves wholesale customers via the Shenzhen jewelry showroom and adjusted CSmall experience store layouts, ceasing expansion of existing stores - Regarding online sales channels, the group became a core supplier of gold, silver, and jewelry products for all first-tier TV stations, reaching over **100 million household viewers daily**, significantly enhancing brand awareness[50](index=50&type=chunk) - Short-video marketing and KOL endorsements have become standard for brand marketing, with content becoming central to marketing, sales, and operations[50](index=50&type=chunk) - Offline sales primarily serve wholesale customers and franchisees through the Shenzhen jewelry showroom, with CSmall experience store layouts adjusted to no longer expand existing stores, resulting in only **two franchised CSmall experience stores** as of June 30, 2025[51](index=51&type=chunk)[52](index=52&type=chunk) [New Layout for Exploration Business](index=25&type=section&id=New%20Layout%20for%20Exploration%20Business) The group actively expanded its upstream exploration business, discovering multiple gold mineralization zones in the Shannan exploration area in Tibet, with an estimated inferred gold metal quantity of approximately 5,800 kg, upgrading the exploration stage to 'detailed survey', and identifying potential for associated antimony. Additionally, the group acquired a lead-zinc mine exploration license in Xigaze, Tibet, further expanding its mineral resource reserves - On August 21, 2024, the group acquired a **51% equity interest** in Jiangxi Letong New Material Co., Ltd., which owns **100% equity interest** in Tibet Longtianyong Mining Co., Ltd., holding a mineral resource general survey and exploration license for an area of **28.88 square kilometers** in Shannan City, Tibet[53](index=53&type=chunk) - According to the general survey report, multiple gold mineralization zones were discovered in the Shannan exploration area, with an estimated inferred ore quantity of approximately **2,100,000 tons**, an inferred gold metal quantity of approximately **5,800 kg**, an average gold grade of approximately **2.77 grams/ton**, and a preliminary estimated prospective metal quantity of **20-25 tons**[53](index=53&type=chunk) - In March 2025, the exploration stage of the prospecting right was upgraded from 'general survey' to 'detailed survey', with the exploration area adjusted to **22.8246 square kilometers**, and the detailed survey implementation plan was approved, marking significant progress in the company's transformation into a gold resource enterprise with large-scale gold mine development potential[54](index=54&type=chunk) - The Shannan mining area is a typical gold-antimony deposit with co-existing gold and antimony, where revenue from associated antimony is expected to become a significant profit growth point for the project and enable entry into the core semiconductor material sector[54](index=54&type=chunk) - On July 18, 2025, the group, in conjunction with China Silver Group, completed the acquisition of a **55% equity interest** in Jiangxi Yiding Trading Co., Ltd., which holds **100% equity interest** in Xigaze Huaye Mining Development Co., Ltd. in Tibet, holding a mineral resource general survey and exploration license for an area of **50.81 square kilometers** in Xigaze City, Tibet, primarily engaged in lead-zinc mine exploration[55](index=55&type=chunk) [Discontinued Operations](index=27&type=section&id=Discontinued%20Operations) The group completed the disposal of its fresh food retail business segment on January 13, 2025, which had severely declined due to reduced pork consumption and the recovery of traditional fresh food models post-pandemic. The group decided to sell to focus management attention and resources on its core gold and silver jewelry retail business, generating a disposal gain of approximately RMB 41.2 million - The group completed the disposal of its entire **51% equity interest** in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. (fresh food retail business segment) on January 13, 2025[57](index=57&type=chunk) - The business severely declined due to reduced pork consumption and market diversion by the recovery of traditional fresh food models post-pandemic, leading to weakened business model value and limited prospects and growth potential[57](index=57&type=chunk) - The disposal generated a gain of approximately **RMB 41.2 million**, allowing the group to focus management attention and financial and human resources on its core gold and silver jewelry retail business[57](index=57&type=chunk) [Outlook](index=28&type=section&id=Outlook) After rebranding as 'Mount Everest Gold', the group officially entered a 'golden era', poised to benefit from the gold bull market and achieve upstream-downstream synergies by expanding its gold mineral exploration business. Concurrently, the group closely monitors the Real World Asset (RWA) market, not ruling out entry into the gold and precious metals RWA market at an opportune time - After rebranding as **'Mount Everest Gold'**, the group officially entered a new 'golden era', expected to benefit from the epic breakthrough in the gold market and the steady rise of gold mining stocks[58](index=58&type=chunk) - New acquisitions and exploration progress in Shannan will drive the group's expansion into upstream mining operations, granting greater control over upstream raw material supply and creating synergies for the jewelry new retail business[58](index=58&type=chunk) - The group closely monitors the development trend of Real World Assets (RWA), and with gold and precious metals as important underlying assets for future RWA, the group does not rule out entering the gold and precious metals RWA market at an appropriate time[59](index=59&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) The group's H1 2025 financial performance was strong, with significant growth in revenue and gross profit from continuing operations, and net profit turning profitable. Working capital management efficiency improved, and the net debt-to-equity ratio improved. The group also undertook significant capital expenditures and acquisitions while maintaining a robust liquidity position - In H1 2025, revenue from continuing operations was approximately **RMB 236.3 million**, a substantial year-on-year increase of approximately **139.9%**, primarily driven by a significant increase in gold product sales of approximately **1,058.7%**, rising gold prices, and sales of low-cost inventory[60](index=60&type=chunk) Financial Performance Summary | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 236,328 | 98,509 | | Cost of Sales | 136,495 | 71,962 | | Gross Profit | 99,833 | 26,547 | | Gross Profit Margin | 42.2% | 26.9% | | Selling and Distribution Expenses | 10,326 | 8,700 | | Administrative Expenses | 34,074 | 10,100 | | Income Tax Expense | 22,597 | 1,600 | | Profit (Loss) Attributable to Owners of the Company | 75,300 | (11,000) | - Inventory turnover days decreased from **3,267 days** as of December 31, 2024, to approximately **1,275 days** in H1 2025, trade receivables turnover days decreased from **130 days** to approximately **69 days**, and trade payables turnover days decreased from **85 days** to approximately **36 days**, indicating improved working capital management efficiency[71](index=71&type=chunk)[72](index=72&type=chunk) - As of June 30, 2025, the group was in a net cash position, with a net debt-to-equity ratio of approximately **-31.5%** (December 31, 2024: -26.4%), indicating an improved net cash position[73](index=73&type=chunk) - Capital expenditure in H1 2025 was approximately **RMB 81.0 million**, mainly related to the acquisition of leased land and buildings for the new China headquarters and the purchase of a vehicle[74](index=74&type=chunk) - As of June 30, 2025, the group's contracted but unprovided capital expenditure in the financial statements was **RMB 3.5 million** for the acquisition of a non-wholly owned subsidiary[76](index=76&type=chunk) - Jiangxi Jiyin Industrial Co., Ltd., a subsidiary of the group, provided a corporate guarantee of **RMB 250.0 million** to Jiangxi Longtianyong Nonferrous Metals Co., Ltd., a fellow subsidiary, as a contingent liability[77](index=77&type=chunk) - Almost all of the group's assets, liabilities, income, costs, and expenses are denominated in RMB, resulting in extremely low foreign exchange exposure, with no foreign exchange hedging arrangements in place[79](index=79&type=chunk) - As of June 30, 2025, the group employed **117 staff** (December 31, 2024: 123 staff), with total staff costs of approximately **RMB 6.9 million** in H1 2025[80](index=80&type=chunk) - The group maintained a robust liquidity position in H1 2025, primarily funded by internal resources and bank borrowings[81](index=81&type=chunk) - The board of directors resolved not to declare any interim dividend for H1 2025[82](index=82&type=chunk) [Other Information](index=36&type=section&id=Other%20Information) This section covers significant investments, acquisitions, disposals, post-reporting period events, corporate governance practices, acknowledgements, and publication details [Significant Investments, Acquisitions and Disposals](index=36&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) The group completed the disposal of a 51% equity interest in its fresh food retail business on January 13, 2025. Subsequent to the reporting period, Jiangxi Jiyin Industrial Co., Ltd., an indirect wholly-owned subsidiary, entered into an equity transfer agreement to dispose of certain equity interests in Jiangxi Yiding Trading Co., Ltd - On January 13, 2025, the group completed the disposal of a **51% equity interest** in Shenzhen Xiansheng Zhanggui Technology Co., Ltd. (fresh food retail business)[83](index=83&type=chunk) - During the reporting period, Jiangxi Jiyin Industrial Co., Ltd., an indirect wholly-owned subsidiary of the group, entered into an equity transfer agreement to dispose of certain equity interests in Jiangxi Yiding Trading Co., Ltd., with the transaction completed after the reporting period[83](index=83&type=chunk) [Material Events After Reporting Period](index=36&type=section&id=Material%20Events%20After%20Reporting%20Period) On July 18, 2025, Jiangxi Jiyin Industrial Co., Ltd., an indirect wholly-owned subsidiary of the group, completed the acquisition of a 35% equity interest in Jiangxi Yiding Trading Co., Ltd., which holds 100% equity interest in Xigaze Huaye Mining Development Co., Ltd. in Tibet, primarily engaged in lead-zinc mine exploration - On June 17, 2025, Jiangxi Jiyin Industrial Co., Ltd., an indirect wholly-owned subsidiary of the group, entered into an equity transfer agreement to acquire a **35% equity interest** in Jiangxi Yiding Trading Co., Ltd. for a total consideration of **RMB 3,500,000**[84](index=84&type=chunk) - Jiangxi Yiding Trading Co., Ltd. holds **100% equity interest** in Xigaze Huaye Mining Development Co., Ltd. in Tibet, which is primarily engaged in lead-zinc mine exploration[84](index=84&type=chunk) - The transaction was completed on **July 18, 2025**[84](index=84&type=chunk) [Corporate Governance](index=37&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code, except for the non-segregation of Chairman and CEO roles. The board confirmed compliance with the Model Code for Securities Transactions, and the audit committee reviewed financial statements and internal control systems - The company has complied with the code provisions under the Corporate Governance Code, except for code provision C.2.1 (the roles of chairman and chief executive should be separate)[85](index=85&type=chunk) - Mr. Chen He currently serves as both the Chairman of the Board and Chief Executive Officer of the company, and the board considers him the best candidate for these positions[85](index=85&type=chunk) - All directors confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout H1 2025[86](index=86&type=chunk) - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities in H1 2025[87](index=87&type=chunk) - The Audit Committee reviewed the group's financial reporting process and risk management and internal control systems, deeming the unaudited condensed consolidated financial statements to be prepared in compliance with applicable accounting standards, Listing Rules, and legal requirements[88](index=88&type=chunk) [Acknowledgement](index=38&type=section&id=Acknowledgement) The board expresses gratitude to management, all employees, shareholders, and customers, acknowledging their hard work, contributions, and long-term support - The board extends its gratitude to the management and all staff for their hard work and contributions, and to the shareholders and customers for their long-term support of the group[89](index=89&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=39&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the company's website and HKEX website, and the interim report will be dispatched to shareholders and published on the same websites in due course - This announcement is published on the company's website (www.everestgold.hk) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)[90](index=90&type=chunk) - The company's 2025 interim report will be dispatched to shareholders who require a printed copy and published on the same websites in due course[90](index=90&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。 CHINA FIRST CAPITAL GROUP LIMITED 中國首控集團有限公司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：1269） 截至二零二五年六月三十日止六個月之 中期業績公告 中 國 首 控 集 團 有 限 公 司（「本公司」，連 同 其 附 屬 公 司，統 稱「本集團」）董 事（「董 事」）會（「董事會」）謹 此 公 佈 本 集 團 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 未 經 審 核 簡 明 綜 合 業 績。本 公 告 載 列 本 公 司 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 中 期 報 告 全 文，並 符 合 香 港 聯 合 交 易 所 有 限 公 司（「聯交所」）證 券 上 市 規 則 （「上市規則」）有 關 中 期 業 績 初 ...

香港交易及結算所有限公司、香港聯合交易所有限公司及新加坡證券交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失 承擔任何責任。 （於英格蘭及威爾斯成立及註冊的有限責任公司，註冊編號為 01397169 ） （股份代號：2378） 新聞稿及截至二零二五年六月三十日止六個月 的半年度業績 隨附之公告由 Prudential plc 於以下日期發佈。 二零二五年八月二十七日，香港 截至本公告日期，Prudential plc 的董事會成員為： 主席 Shriti Vadera 執行董事 Anil Wadhwani (華康堯) （執行總裁） 獨立非執行董事 Jeremy David Bruce Anderson (安德森) CBE、Arijit Basu、蔡淑君、Guido Fürer、路明、 George David Sartorel、Mark Vincent Thomas Saunders (馬崇達) FIA, FASHK、 Claudia Ricarda Rita Suessmuth Dyckerhoff ...

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。 （於開曼群島註冊成立的有限公司） （股份代號：1209） 二零二五年中期業績公告 摘要 截至二零二五年六月三十日止六個月，本集團錄得收入人民幣85.24億元，較 過往期間增長6.5%。其中於本集團的業務板塊中，商業航道業務收入為人民幣 32.67億元，較過往期間增長14.6%；物業航道業務收入為人民幣51.57億元，較 過往期間增長1.1%；及生態圈業務收入為人民幣1.00億元。 截至二零二五年六月三十日止六個月，本集團毛利潤為人民幣31.65億元，較過 往期間增長16.3%。毛利率從過往期間的34.0%提高至截至二零二五年六月三十 日止六個月的37.1%。 截至二零二五年六月三十日止六個月，股東應佔利潤為人民幣20.30億元，同比 增長7.4%。股東應佔核心淨利潤（非香港財務報告會計準則計量）達到人民幣 20.11億元，同比增長15.0%。 於二零二五年六月三十日，本集團向其提供商業運營服務的已開業購物 ...