[Company Announcements and Important Notices](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%85%AC%E5%91%8A%E5%8F%8A%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Announcement Statement](index=1&type=section&id=%E5%85%AC%E5%91%8A%E8%81%B2%E6%98%8E) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content of this announcement, make no statement as to its accuracy or completeness, and accept no liability for any loss - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content of this announcement, make no statement as to its accuracy or completeness, and accept no liability for any loss[1](index=1&type=chunk) [Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) The Board of Directors is pleased to announce the unaudited consolidated results for the six months ended June 30, 2025, in compliance with GEM Listing Rules, with the full interim report to be dispatched to shareholders and published online - The Board of Directors is pleased to announce the unaudited consolidated results for the six months ended June 30, 2025, in compliance with GEM Listing Rules requirements[3](index=3&type=chunk) - The printed version of the Company's 2025 interim report will be dispatched to shareholders and published on the Company's and Stock Exchange's websites in due course[3](index=3&type=chunk) [Board Members and Responsibility Statement](index=2&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1%E5%8F%8A%E8%B2%AC%E4%BB%BB%E8%81%B2%E6%98%8E) This announcement lists the company's executive and independent non-executive directors, who collectively and individually assume full responsibility for the accuracy, completeness, and non-misleading nature of the information herein - Executive Directors are Mr Sun Haitao and Ms Wu Shan; Independent Non-executive Directors are Mr Fan Lei, Ms Liu Jia, and Mr Yu Tat Chi[4](index=4&type=chunk) - Each Director confirms that the information contained in the announcement is accurate and complete in all material respects, contains no misleading or fraudulent statements, and omits no material facts, and they collectively and individually accept full responsibility[4](index=4&type=chunk) [GEM Market Characteristics and Risk Warning](index=3&type=section&id=GEM%E5%B8%82%E5%A0%B4%E7%89%B9%E8%89%B2%E5%8F%8A%E9%A2%A8%E9%9A%AA%E6%8F%90%E7%A4%BA) The GEM market provides a listing platform for SMEs, which typically carry higher investment risks; investors should fully understand potential risks, including market volatility and uncertain liquidity, and make prudent investment decisions - GEM is positioned to provide a listing market for small and medium-sized companies, which carry higher investment risks compared to companies listed on the Main Board of the Stock Exchange[5](index=5&type=chunk) - Securities traded on GEM may be subject to greater market volatility risks than those traded on the Main Board, and there is no guarantee of a highly liquid market for GEM-traded securities[5](index=5&type=chunk) [Financial Highlights](index=4&type=section&id=%E6%91%98%E8%A6%81) [Summary of Key Financial Performance](index=4&type=section&id=%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the Group's revenue from continuing operations decreased by approximately 28% to HK$13.023 million, with the consolidated loss attributable to owners increasing by 13.8% to HK$3.872 million, resulting in a basic and diluted loss per share of 0.08 HK cents, and no interim dividend is recommended Key Financial Performance Summary | Metric | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue from continuing operations | 13,023 | 17,971 | | Consolidated loss attributable to owners | 3,872 | 3,402 | | Basic and diluted loss per share | 0.08 HK cents | 0.07 HK cents | - The Group's unaudited consolidated revenue from continuing operations decreased by approximately **28%** compared to the same period in 2024[7](index=7&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[7](index=7&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=%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%E5%85%A5%E8%A1%A8) For the six months ended June 30, 2025, the Group's loss for the period narrowed to HK$3.970 million from HK$4.090 million last year, despite a 28% decrease in revenue from continuing operations and reduced gross profit, partially offset by a turnaround to profit in discontinued operations Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 13,023 | 17,971 | | Cost of sales and services | (11,666) | (16,427) | | Gross profit | 1,357 | 1,544 | | Loss for the period from continuing operations | (4,104) | (3,064) | | Profit/(loss) for the period from discontinued operations | 134 | (1,026) | | Loss for the period | (3,970) | (4,090) | - The loss from continuing operations attributable to owners was **HK$3,940 thousand**, with a profit from discontinued operations of **HK$68 thousand**, totaling a loss of **HK$3,872 thousand**[10](index=10&type=chunk) [Consolidated Statement of Financial Position](index=7&type=section&id=%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 slightly increased to HK$16.823 million, but total liabilities significantly rose by 94% to HK$10.578 million, mainly due to a substantial increase in trade and other payables, leading to a decrease in net current assets and equity attributable to owners Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Non-current assets | 118 | 251 | | Current assets | 16,705 | 15,433 | | Current liabilities | 10,578 | 5,453 | | Net current assets | 6,127 | 9,980 | | Equity attributable to owners of the Company | 6,894 | 10,775 | - Intangible assets increased from nil to **HK$118 thousand**, primarily due to network platform development costs[11](index=11&type=chunk)[19](index=19&type=chunk) [Consolidated Statement of Changes in Equity](index=9&type=section&id=%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, the Group's total equity decreased from HK$10.226 million at the beginning of the year to HK$6.245 million, primarily due to a loss for the period of HK$3.970 million and a reduction in foreign currency translation reserve Consolidated Statement of Changes in Equity | Metric | January 1, 2025 (HK$ Thousand) | June 30, 2025 (HK$ Thousand) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 10,775 | 6,894 | | Non-controlling interests | (549) | (649) | | Total equity | 10,226 | 6,245 | - The loss for the period of **HK$3,970 thousand** is the primary reason for the decrease in equity[14](index=14&type=chunk) [Consolidated Statement of Cash Flows](index=10&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, the Group generated a net cash outflow of HK$6.762 million from operating activities, a stark contrast to the net inflow in the prior year, with minimal cash outflow from investing activities and no net cash flow from financing activities, leading to a significant reduction in cash and bank balances to HK$6.537 million at period-end Consolidated Statement of Cash Flows | Metric | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (6,762) | 170 | | Net cash used in investing activities | (8) | (704) | | Net cash used in financing activities | — | (219) | | Net decrease in cash and cash equivalents | (6,770) | (753) | | Cash and cash equivalents at end of period | 6,537 | 17,225 | [Notes to the Interim Financial Information](index=11&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [Basis of Preparation and Impact of New and Revised HKFRSs and HKASs](index=11&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%96%B0%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%89%87%E5%8F%8A%E9%A6%99%E6%B8%AF%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E4%B9%8B%E5%BD%B1%E9%9F%BF) The Group's unaudited consolidated financial statements for the six months ended June 30, 2025, are prepared in accordance with HKAS 34 and GEM Listing Rules, applying consistent accounting policies as of December 31, 2024, with no significant changes from adopting new and revised HKFRSs - The Group's unaudited consolidated financial statements for the six months ended June 30, 2025, are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of the GEM Listing Rules[18](index=18&type=chunk) - The adoption of these new and revised HKFRSs has not resulted in any significant changes to the Group's accounting policies or the amounts reported for the current and prior periods[18](index=18&type=chunk) [Revenue](index=12&type=section&id=%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's revenue from continuing operations decreased by 28% to HK$13.023 million compared to the prior year, with a shift in revenue structure as new automotive cultural products contributed HK$8.001 million while smart retail services revenue significantly declined Revenue by Source (Continuing Operations) | Revenue Source (Continuing Operations) | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Provision of automotive cultural products business | 8,001 | — | | Provision of smart retail services | 5,022 | 17,971 | | **Total Revenue** | **13,023** | **17,971** | [Segment Information](index=12&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operating segments include continuing operations (smart retail and automotive cultural products) and discontinued operations (AWS cloud services); for the six months ended June 30, 2025, smart retail revenue significantly decreased, automotive cultural products generated HK$8.001 million in new revenue, and the discontinued AWS cloud services recorded a profit of HK$134 thousand - The Group's operating segments include continuing operations (smart retail business, automotive cultural products business) and discontinued operations (AWS cloud services business)[22](index=22&type=chunk)[23](index=23&type=chunk) Revenue by Business Segment | Business Segment | Revenue for Six Months Ended June 30, 2025 (HK$ Thousand) | Revenue for Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Smart retail business (continuing) | 5,022 | 17,971 | | Automotive cultural products business (continuing) | 8,001 | — | | AWS cloud services business (discontinued) | 134 | 4,570 | Segment Assets | Business Segment | Segment Assets as of June 30, 2025 (HK$ Thousand) | Segment Assets as of December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Smart retail business | 6,028 | 1,854 | | Automotive cultural products business | 3,346 | 304 | | AWS cloud services business | — | — | [Finance Costs](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, the Group incurred no finance costs, compared to HK$15 thousand in lease liability interest during the same period last year Finance Costs | Metric | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on lease liabilities | — | 15 | [Income Tax Credit](index=15&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D) For the six months ended June 30, 2025, the Group recorded an income tax credit of HK$5 thousand, primarily from deferred tax, with no Hong Kong profits tax provision due to the absence of assessable profits, and Chinese subsidiaries subject to a 25% corporate income tax rate Income Tax Credit | Metric | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current tax | (1) | — | | Deferred tax | 6 | 16 | | **Income tax credit** | **5** | **16** | - The Group has no assessable profits in Hong Kong, thus no Hong Kong profits tax provision; Chinese subsidiaries are subject to a corporate income tax rate of **25%**[27](index=27&type=chunk) [Loss for the Period from Continuing Operations](index=16&type=section&id=%E4%BE%86%E8%87%AA%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99%E7%9A%84%E6%9C%9F%E9%96%93%E虧%E6%90%8D) For the six months ended June 30, 2025, the Group's loss from continuing operations increased to HK$4.104 million, primarily due to higher net exchange losses and increased loss allowance for trade and other receivables, despite reductions in employee benefit expenses and directors' emoluments Loss for the Period from Continuing Operations | Item | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Bank interest income | (120) | (173) | | Net exchange losses | 524 | 219 | | Employee benefit expenses (excluding directors' emoluments) | 1,509 | 1,753 | | Directors' emoluments | 416 | 739 | | Loss allowance for trade and other receivables | 612 | 4,846 | | Amortisation of intangible assets | 10 | — | [Discontinued Operations](index=17&type=section&id=%E5%B7%B2%E7%B5%82%E6%AD%A2%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99) The Group reclassified its AWS cloud services business as discontinued operations after its sale in 2024; for the six months ended June 30, 2025, this business recorded a profit of HK$134 thousand, a significant improvement from a loss of HK$1.026 million in the prior year, despite a substantial decrease in revenue - The AWS cloud services business was sold in 2024 and reclassified as discontinued operations[30](index=30&type=chunk) Discontinued Operations Performance | Metric | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 134 | 4,570 | | Profit/(loss) before tax | 134 | (1,026) | | Total comprehensive income/(expense) for the period from discontinued operations | 134 | (1,026) | [Loss Per Share](index=18&type=section&id=%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, the basic and diluted loss per share attributable to owners of the Company increased to 0.08 HK cents from 0.07 HK cents in the prior year, with no difference between basic and diluted loss per share due to the absence of dilutive potential shares Loss Attributable to Owners | Source of Loss | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | From continuing operations | (3,940) | (2,879) | | From discontinued operations | 68 | (523) | | **Total Loss** | **(3,872)** | **(3,402)** | Loss Per Share | Metric | Six Months Ended June 30, 2025 (HK cents per share) | Six Months Ended June 30, 2024 (HK cents per share) | | :--- | :--- | :--- | | Loss per share from continuing operations | (0.08) | (0.06) | | Loss per share from continuing and discontinued operations | (0.08) | (0.07) | [Property, Plant and Equipment](index=19&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, the Group's net book value of property, plant and equipment decreased to zero due to disposals, compared to HK$3 thousand as of December 31, 2024 Property, Plant and Equipment Net Book Value | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net book value at end of period/year | — | 3 | - The net book value of property, plant and equipment decreased to **zero** due to disposals[33](index=33&type=chunk) [Intangible Assets](index=19&type=section&id=%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group's net book value of intangible assets increased to HK$118 thousand, primarily due to new network platform development costs of HK$128 thousand, partially offset by amortization Intangible Assets Net Book Value | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net book value at end of period/year | 118 | — | - Intangible assets primarily refer to network platform development costs, with **HK$128 thousand** added during the period[33](index=33&type=chunk) [Trade and Other Receivables](index=20&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, the Group's total trade and other receivables significantly increased to HK$9.729 million from HK$2.107 million at the end of 2024, with a particularly notable rise in trade receivables aged 0 to 60 days Trade and Other Receivables Aging Analysis | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 3,169 | — | | 31 to 60 days | 1,481 | 16 | | 61 to 90 days | 495 | 1 | | Over 90 days | — | — | | **Total trade receivables** | **5,145** | **17** | | Deposits, other receivables and prepayments | 4,584 | 2,090 | | **Total trade and other receivables** | **9,729** | **2,107** | [Trade and Other Payables](index=21&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, the Group's total trade and other payables more than doubled to HK$10.549 million from HK$4.086 million at the end of 2024, primarily driven by an increase in other payables and accrued expenses Trade and Other Payables Aging Analysis | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 1,255 | — | | 31 to 60 days | 1,518 | — | | 61 to 90 days | 1,195 | — | | Over 90 days | 207 | 204 | | **Total trade payables** | **4,175** | **204** | | Accrued salaries and other staff benefits | 336 | 1,590 | | Other payables and accrued expenses | 6,038 | 2,292 | | **Total trade and other payables** | **10,549** | **4,086** | [Related Party Transactions](index=22&type=section&id=%E9%97%9C%E9%80%A3%E6%96%B9%E4%BA%A4%E6%98%93) For the six months ended June 30, 2025, key management personnel remuneration was HK$416 thousand, a decrease from the prior year, and new revenue of HK$409 thousand was generated from providing smart retail services to an intermediate holding company Related Party Transactions | Type of Transaction | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Key management personnel remuneration | 416 | 739 | | Provision of smart retail services to an intermediate holding company | 409 | — | [Interim Dividend](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[38](index=38&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review](index=23&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's business review indicates that smart retail remains core, despite a decline in continuing revenue, while the new automotive cultural products business shows strong performance, contributing new growth, with overall revenue affected by cloud service business adjustments - The Group's business development will continue to be driven by its smart retail business, with core operations including system development, operation, and software and hardware sales services[52](index=52&type=chunk) [Smart Retail Business](index=23&type=section&id=%E6%99%BA%E6%85%A7%E9%9B%B6%E5%94%AE%E6%A5%AD%E5%8B%99) As a comprehensive supplier, the smart retail business offers digital transformation solutions and cloud services; for the six months ended June 30, 2025, continuing smart retail business revenue was HK$5.022 million, a significant decrease from the prior year, with total revenue (including discontinued AWS cloud services) reduced due to declining cloud service income and business adjustments - The smart retail business is positioned as a comprehensive smart retail supplier, providing new retail digital transformation solutions and integrated operation service platforms[39](index=39&type=chunk) Smart Retail Business Revenue | Metric | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue from continuing smart retail business | 5,022 | 17,971 | | Revenue from discontinued AWS cloud services business | 134 | 4,570 | | **Total revenue from smart retail business** | **5,156** | **22,541** | - The year-on-year decrease in revenue is primarily due to a decline in cloud service business income and business adjustments[39](index=39&type=chunk) [Automotive Cultural Products Business](index=23&type=section&id=%E8%BB%8A%E5%93%81%E6%96%87%E5%8C%96%E6%A5%AD%E5%8B%99) The Group's automotive cultural products business recorded HK$8.001 million in revenue for the six months ended June 30, 2025, demonstrating strong market potential by offering customized designs in collaboration with car manufacturers and ensuring efficient supply through partner network platforms to meet growing consumer demand for automotive accessories and related products - The automotive cultural products business recorded revenue of **HK$8,001 thousand** in H1 2025, demonstrating good market potential[40](index=40&type=chunk) - This business provides customized designs in collaboration with car manufacturers, including products like backpacks and cameras, and ensures efficient supply by placing orders through these manufacturers' network platforms[40](index=40&type=chunk) [Financial Review and Financial Policy](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%92%8C%E8%B2%A1%E5%8B%99%E6%94%BF%E7%AD%96) For the six months ended June 30, 2025, the Group's revenue from continuing operations decreased by 28%, and the consolidated loss attributable to owners increased by 14% to HK$3.872 million, mainly due to declining cloud service income and business adjustments, while the Group maintains a centralized financial policy to reduce interest expenses Financial Performance Summary | Metric | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Consolidated revenue from continuing operations | 13,023 | 17,971 | Decrease 28% | | Consolidated loss attributable to owners (total) | 3,872 | 3,402 | Increase 13.8% | - The increase in loss is primarily attributable to the decline in cloud service business income and the Company's business adjustments[41](index=41&type=chunk) - The Group adopts a centralized financial policy for cash and financial management and is committed to reducing the Group's overall interest expenses[42](index=42&type=chunk) [Liquidity and Gearing Ratio](index=25&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's total assets increased to HK$16.823 million, but total liabilities significantly rose to HK$10.578 million, causing the current ratio to decrease from 2.0 to 1.5, with cash and bank balances more than halved, while the Group has no bank borrowings or loans, maintaining a zero gearing ratio Liquidity and Gearing Ratios | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Total assets | 16,823 | 15,684 | Increase 7.3% | | Total liabilities | 10,578 | 5,453 | Increase 94% | | Cash and bank balances | 6,537 | 13,281 | Decrease 50.8% | | Current ratio | 1.5 | 2.0 | Decrease 25% | | Gearing ratio | 0 | 0 | No change | [Capital Structure](index=25&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As of June 30, 2025, the Group's capital structure shows equity attributable to owners of HK$6.894 million, a decrease from HK$10.775 million at the end of 2024, with the total number of issued shares remaining unchanged at 4,686,048,381 Equity Attributable to Owners | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company | 6,894 | 10,775 | Decrease 36% | - As of June 30, 2025, the total number of issued shares of the Company was **4,686,048,381** shares, with a par value of **HK$0.005** per share, consistent with December 31, 2024[44](index=44&type=chunk) [Pledge of the Group's Assets](index=25&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had no assets pledged, consistent with the situation as of December 31, 2024 - As of June 30, 2025, the Group had no assets pledged[45](index=45&type=chunk) [Material Investments, Acquisitions or Disposals of Major Subsidiaries, Associates or Joint Ventures](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%88%96%E5%90%88%E7%87%9F%E5%85%AC%E5%8F%B8%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group held no other material investments and did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group held no other material investments and did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[46](index=46&type=chunk) [Capital Commitments and Future Plans for Material Investments or Capital Asset Purchases](index=26&type=section&id=%E8%B3%87%E6%9C%AC%E6%8A%95%E8%B3%87%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%BC%E5%85%A5%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) For the six months ended June 30, 2025, the Group made no payments for property, plant, and equipment purchases, and as of that date, had no specific future plans for material investments or capital asset acquisitions - For the six months ended June 30, 2025, the Group made no payments for the purchase of property, plant and equipment[47](index=47&type=chunk) - As of June 30, 2025, there were no specific plans for material investments or capital asset purchases[47](index=47&type=chunk) [Exchange Rate Fluctuation Risk](index=26&type=section&id=%E5%8C%AF%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group's sales and purchases are primarily denominated in HKD and RMB; RMB exchange rates are subject to Chinese government controls and various economic and political factors, whose fluctuations may impact the Group's results, and while the Group monitors foreign exchange risk, it undertook no hedging transactions for the six months ended June 30, 2025 - The Group's sales and purchases are primarily denominated in Hong Kong Dollars and Renminbi. Renminbi is not freely convertible, and its future exchange rate may fluctuate significantly from current or past rates due to controls imposed by the Chinese government[48](index=48&type=chunk) - The Group monitors its foreign exchange risk and considers hedging significant currency exposures when necessary. For the six months ended June 30, 2025, the Group did not enter into any hedging transactions[49](index=49&type=chunk) [Contingent Liabilities](index=26&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities, consistent with the situation as of December 31, 2024 - As of June 30, 2025, the Group had no material contingent liabilities[50](index=50&type=chunk) [Employees and Remuneration Policy](index=27&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 decreased to 8, with total staff costs, including directors' emoluments, approximately HK$2.2 million, a decrease from the prior year, and the Group offers competitive remuneration and benefits, reviewed annually based on performance Employee Statistics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | 8 | 12 | Staff Costs | Metric | Six Months Ended June 30, 2025 (HK$ Million) | Six Months Ended June 30, 2024 (HK$ Million) | | :--- | :--- | :--- | | Total staff costs (including directors' emoluments) | 2.2 | 2.7 | - The Group provides competitive salaries and benefits to its employees, with remuneration determined based on job performance within a regularly reviewed salary and bonus system[51](index=51&type=chunk) [Outlook](index=27&type=section&id=%E5%B1%95%E6%9C%9B) The Group's future business development will continue to be driven by its smart retail business, focusing on system development, operation, and software and hardware sales services, anticipating increased demand for smart retail services due to the popularization of generative AI and consumption boosting policies, while closely monitoring operational performance, adjusting strategies, concentrating resources on high-growth potential units, and exploring new productive forces and internet new retail opportunities, and implementing cost-saving measures - The Group's business development will continue to be driven by its smart retail business, with core operations including smart retail business system development, operation, and software and hardware sales services[52](index=52&type=chunk) - The popularization of generative artificial intelligence and other technologies, coupled with consumption boosting policies and the Chinese government's promotion of supply-side structural reforms, are expected to stimulate future demand for smart retail services[52](index=52&type=chunk) - The Group will closely monitor its operational performance in mainland China, continuously adjust its business strategies, concentrate resources on operating units with greater growth potential, and explore various industry opportunities such as new productive forces and internet new retail, while also implementing cost-saving measures[52](index=52&type=chunk) [Other Information](index=28&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations](index=28&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%88%96%E5%85%B6%E4%BB%BB%E4%BD%95%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B8%AD%E6%93%81%E6%9C%89%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Mr Sun Haitao held approximately 18.90% equity interest in Vala Inc. (formerly 51 Credit Card Inc.), and Ms Wu Shan held approximately 0.10%, through discretionary trusts, founder status, and beneficial ownership, with no other directors or chief executives holding disclosable interests in associated corporations' shares Directors' and Chief Executive's Interests in Associated Corporations | Name of Director | Name of Associated Corporation | Capacity and Nature of Interest | Number of Shares | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Mr Sun Haitao | Vala Inc. | Discretionary trust capable of influencing how the trustee exercises its discretion | 108,159,464 | 6.64% | | | | Founder | 50,355,000 | 3.09% | | | | Other | 120,969,142 | 7.42% | | | | Beneficial owner | 28,599,130 | 1.75% | | **Total** | | | **308,082,736** | **18.90%** | | Ms Wu Shan | Vala Inc. | Beneficial owner | 1,689,770 | 0.10% | - Save as disclosed above, as at June 30, 2025, no other Director or chief executive of the Company had any interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations as recorded in the register required to be kept under Section 352 of the SFO[54](index=54&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=30&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B8%AD%E6%93%81%E6%9C%89%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, VALA and its associated companies, along with Qichen High-tech and its associated companies, were deemed to hold approximately 29.00% of the Company's issued share capital due to an uncompleted share purchase agreement, with Mr Zuo Lei holding 10.91% of shares, all interests required to be recorded in the company's register under the SFO Substantial Shareholders' Interests | Name | Capacity and Nature of Interest | Number and Class of Shares | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | VALA | Interest in controlled corporation | 1,358,954,030 (L) | 29.00% | | 51RENPIN.COM INC. | Beneficial owner | 1,358,954,030 (L) | 29.00% | | Mr Zuo Lei | Beneficial owner | 511,025,000 (L) | 10.91% | | Qichen High-tech Management Consulting Ltd. | Beneficial owner | 1,358,954,030 (L) | 29.00% | - As the completion of the share purchase agreement had not occurred as of June 30, 2025, 51RENPIN.COM INC., Qichen High-tech, and their respective holding companies are deemed to have interests in the shares under the SFO[58](index=58&type=chunk) [Compliance with Corporate Governance Code](index=32&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) For the six months ended June 30, 2025, the Company applied and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules, except for the deviation from code provision C.2.1 where Mr Sun Haitao holds both Chairman and Chief Executive Officer roles, an arrangement the Board believes enhances decision-making efficiency, and the Company is actively seeking a suitable candidate to comply with the code - The Company has applied and complied with all code provisions of the Corporate Governance Code set out in Part 2 of Appendix C1 to the GEM Listing Rules for the six months ended June 30, 2025, save for the deviation from code provision C.2.1 where the roles of Chairman and Chief Executive Officer are performed by the same individual, Mr Sun Haitao[60](index=60&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer can enhance the Company's decision-making and execution efficiency, effectively seizing business opportunities. The Company is still looking for a suitable candidate to fill the vacancy of Chief Executive Officer[60](index=60&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=%E8%91%A3%E4%BA%8B%E4%B9%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The Company has adopted a code of conduct for directors' securities transactions no less stringent than the Model Code; for the six months ended June 30, 2025, the Company is unaware of any director having breached the Model Code or the Company's code - The Company has adopted a code of conduct for directors' securities transactions on terms no less exacting than the required standard of dealings set out in the Model Code for Securities Transactions by Directors of Listed Issuers[61](index=61&type=chunk) - The Company has made specific enquiries of all Directors and is not aware of any non-compliance with the required standard of dealings set out in the Model Code and the Company's code for the six months ended June 30, 2025[61](index=61&type=chunk) [Audit Committee](index=33&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Company's Audit Committee has reviewed the Group's unaudited consolidated results and interim report for the six months ended June 30, 2025, confirming compliance with applicable accounting standards, GEM Listing Rules, and other statutory requirements, with adequate disclosures and no disagreements on accounting treatments adopted - The Company's Audit Committee has reviewed the Group's unaudited consolidated results and interim report for the six months ended June 30, 2025[62](index=62&type=chunk) - The Committee is of the opinion that the financial statements comply with applicable accounting standards, the GEM Listing Rules and other statutory requirements, and that adequate disclosures have been made. The Audit Committee had no disagreements with the accounting treatments adopted[62](index=62&type=chunk) [Changes in Information of Directors and Chief Executive](index=33&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E4%B9%8B%E4%BF%A1%E6%81%AF%E8%AE%8A%E6%9B%B4) For the six months ended June 30, 2025, and up to the report date, Ms Wu Shan's annual director's emolument as an executive director changed to HK$512 thousand, effective January 1, 2025, with no other changes in information of directors and chief executive requiring disclosure under the GEM Listing Rules - Ms Wu Shan's annual director's emolument as an executive director has been changed to **HK$512 thousand**, effective January 1, 2025[63](index=63&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=33&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of that date, the Company held no treasury shares - Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities for the six months ended June 30, 2025[64](index=64&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[64](index=64&type=chunk) [Change in Single Largest Shareholder](index=34&type=section&id=%E8%AE%8A%E6%9B%B4%E5%96%AE%E4%B8%80%E6%9C%80%E5%A4%A7%E8%82%A1%E6%9D%B1) On January 24, 2025, the Company was informed of the signing of a share purchase agreement and placing agreement involving the sale of approximately 29.00% of shares by 51RENPIN.COM INC. and VALA, and the placing of up to 10.16% of shares; these transactions completed in June and July 2025, resulting in Qichen High-tech becoming the Company's single largest shareholder with approximately 29.00% of the issued shares - On January 24, 2025, 51RENPIN.COM INC. and VALA entered into a share purchase agreement with Qichen High-tech and Shandong Qichen Zhongke Investment Holding Co., Ltd. for the disposal of **1,358,954,030** shares (representing approximately **29.00%** of the total issued shares)[65](index=65&type=chunk) - A placing agreement was also entered into, where 51RENPIN.COM INC. agreed to place up to **476,009,183** shares (representing approximately **10.16%** of the total issued shares) to investors through a placing agent[65](index=65&type=chunk) - The placing agreement and the share purchase agreement were completed on June 9, 2025, and July 15, 2025, respectively. As a result, Qichen High-tech has become the Company's single largest shareholder, holding approximately **29.00%** of the total issued shares[66](index=66&type=chunk) [Events After Reporting Period](index=34&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No material events occurred after the reporting period and up to the date of this report - No material events occurred after the end of the period and up to the date of this report[67](index=67&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性 亦不發表聲明，並明確表示，概不對就本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 SIS INTERNATIONAL HOLDINGS LIMITED 新龍國 際集團有限 公司 * （於百慕達註冊成立之有限公司） （股份代號：00529） 截至二零二五年六月三十日止六個月 中期業績 新龍國際集團有限公司（「本公司」）董事（「董事」）欣然宣佈本公司及其附屬公司 （「本集團」）截至二零二五年六月三十日止六個月之中期業績，與及二零二四年同期 之比較數字。中期報告已由本公司核數師及審核委員會審閱。 簡明綜合損益表 截至二零二五年六月三十日止六個月 | | | 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) | (未經審核) | | 收益 | 3 | 4,339,175 | 3,906,365 | | 銷售成本 | | (3,936,980) | (3 ...

[Financial Statements](index=2&type=section&id=Financial%20Statements) Presents the Group's H1 2025 financial performance and position, showing revenue and profit declines, and changes in assets and liabilities [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) In H1 2025, the Group's revenue decreased by 12.6% to RMB 82,398.5 million, gross profit fell 32.2% to RMB 11,920.5 million, and net profit attributable to equity holders significantly dropped 81.8% to RMB 360.0 million, with basic EPS of RMB 0.04 Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB in thousands) | 2024 (RMB in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 82,398,455 | 94,322,292 | -12.6% | | Cost of sales | (70,477,919) | (76,749,697) | -8.2% | | Gross profit | 11,920,536 | 17,572,595 | -32.2% | | Operating profit | 6,202,257 | 10,750,177 | -42.3% | | Profit before income tax | 6,155,053 | 10,233,035 | -39.9% | | Profit for the period | 3,774,388 | 6,866,298 | -45.0% | | Attributable to equity holders of the Company | 359,961 | 1,978,021 | -81.8% | | Attributable to non-controlling interests | 3,414,427 | 4,888,277 | -30.2% | | Basic and diluted earnings per share (RMB) | 0.04 | 0.25 | -84.0% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were RMB 164,710.6 million, a 4.3% decrease from year-end 2024, with significant reduction in cash and cash equivalents, and negative net current assets Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total non-current assets | 88,071,013 | 90,358,033 | -2.5% | | Total current assets | 76,639,540 | 81,686,235 | -6.2% | | **Total Assets** | **164,710,553** | **172,044,268** | **-4.3%** | | **Liabilities** | | | | | Total current liabilities | 76,834,884 | 84,289,737 | -8.8% | | Total non-current liabilities | 9,632,992 | 9,273,058 | +3.9% | | **Total Liabilities** | **86,467,876** | **93,562,795** | **-7.6%** | | **Equity** | | | | | Capital and reserves attributable to equity holders of the Company | 57,509,439 | 57,314,818 | +0.3% | | Non-controlling interests | 20,733,238 | 21,166,655 | -2.0% | | **Total Equity** | **78,242,677** | **78,481,473** | **-0.3%** | | **Net current assets** | **(195,344)** | **(2,603,502)** | **+92.5%** | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) Provides detailed explanations on the Group's general information, accounting policies, going concern, segment data, revenue, operating profit items, income tax, dividends, earnings per share, and receivables/payables [General Information](index=6&type=section&id=General%20Information) The Group primarily manufactures and sells passenger vehicles in China, controlled by BAIC Group, with its ordinary shares listed on the HKEX - The Group primarily engages in the manufacturing and sales of passenger vehicles within China [8](index=8&type=chunk) - The Company's direct controlling company is Beijing Automotive Group Co., Ltd., beneficially owned by the Beijing Municipal People's Government State-owned Assets Supervision and Administration Commission [9](index=9&type=chunk) - The Company's ordinary shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 19, 2014 [9](index=9&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) This condensed financial information is prepared in accordance with IAS 34 and should be read in conjunction with the annual financial statements for the year ended December 31, 2024 - This condensed financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and does not include all notes from the annual consolidated financial statements [11](index=11&type=chunk) - This condensed financial information should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2024 [11](index=11&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) Accounting policies are consistent with the prior year, except for IFRS 21 (amended) "Lack of Exchangeability" effective January 1, 2025, which had no significant impact - The accounting policies adopted in preparing this condensed financial information are consistent with those applied in the Group's annual financial statements for the year ended December 31, 2024, except for new standards effective from January 1, 2025 [12](index=12&type=chunk) - International Accounting Standard 21 (amended) "Lack of Exchangeability" was first applied in 2025 but had no significant impact on the Group's financial statements [13](index=13&type=chunk) [Going Concern](index=7&type=section&id=Going%20Concern) Despite current liabilities exceeding current assets by RMB 195.3 million as of June 30, 2025, management assesses sufficient financial resources, including operating cash inflows and unused bank facilities, support a going concern basis - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately **RMB 195.3 million** [14](index=14&type=chunk) - Management assesses that the Group has sufficient financial resources, including continuous net cash inflows from operating activities and approximately **RMB 33,819 million** in unused bank financing facilities, thus preparing financial statements on a going concern basis [14](index=14&type=chunk)[18](index=18&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group's business operations are reviewed as a single segment related to automotive manufacturing, sales, R&D, and services, with China contributing approximately 96.4% of revenue and 98.7% of non-current assets - The Group has optimized its business structure, with all operations related to the manufacturing and sales of automobiles and auto parts, R&D, and related technical services, thus reviewed as a single business segment [15](index=15&type=chunk) - For the six months ended June 30, 2025, revenue from external customers within mainland China accounted for approximately **96.4%** of the Group's total revenue (H1 2024: 98.8%) [16](index=16&type=chunk) - As of June 30, 2025, approximately **98.7%** of the Group's non-current assets, excluding financial instruments and deferred income tax assets, were located in mainland China (December 31, 2024: 98.4%) [16](index=16&type=chunk) [Revenue](index=7&type=section&id=Revenue) Total revenue for H1 2025 was RMB 82,398,455 thousand, a decrease from RMB 94,322,292 thousand in H1 2024, primarily from customer contracts with a small portion from leasing Revenue Composition | Revenue Source | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue from contracts with customers | 82,359,285 | 94,279,526 | | Lease income | 39,170 | 42,766 | | **Total** | **82,398,455** | **94,322,292** | [Disaggregation of Revenue from Contracts with Customers](index=8&type=section&id=Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) Revenue from contracts with customers is disaggregated by type of goods/services (vehicle sales, other), geographic market (mainland China, other), and timing of recognition (point in time, over time) Disaggregation of Revenue from Contracts with Customers (H1 2025) | Disaggregation Category | Amount (RMB in thousands) | | :--- | :--- | | **Type of goods or services** | | | Sales of vehicles | 79,051,240 | | Others | 3,308,045 | | **Geographical markets** | | | Mainland China | 80,249,568 | | Other countries/regions | 2,109,717 | | **Timing of revenue recognition** | | | Goods transferred at a point in time | 81,646,023 | | Services transferred over time | 713,262 | Disaggregation of Revenue from Contracts with Customers (H1 2024) | Disaggregation Category | Amount (RMB in thousands) | | :--- | :--- | | **Type of goods or services** | | | Sales of vehicles | 90,715,703 | | Others | 3,563,823 | | **Geographical markets** | | | Mainland China | 93,239,724 | | Other countries/regions | 1,039,802 | | **Timing of revenue recognition** | | | Goods transferred at a point in time | 93,297,251 | | Services transferred over time | 982,275 | [Items Included in Operating Profit](index=9&type=section&id=Items%20Included%20in%20Operating%20Profit) Operating profit includes depreciation, employee benefits, warranty costs, and impairment provisions; H1 2025 saw a significant increase in non-financial asset impairment and a decrease in government grants Debit/Credit Items Included in Operating Profit | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Depreciation and amortization | 4,281,433 | 4,427,650 | | Staff welfare expenses | 2,138,710 | 2,904,720 | | Warranty expenses | 1,199,577 | 1,112,811 | | Impairment provision for trade receivables | 16,348 | 11,509 | | Impairment provision for non-financial assets | 764,101 | 332,898 | | Foreign currency exchange losses/(gains) | 92,755 | 297,214 | | Losses/(gains) on forward foreign exchange contracts at fair value through profit or loss | (136,253) | 22,881 | | Loss on disposal of property, plant and equipment | 532 | 32,055 | | Government grants | (163,172) | (198,907) | [Income Tax](index=9&type=section&id=Income%20Tax) Some Group entities enjoy a 15% preferential income tax rate as high-tech enterprises, others are taxed at 25%; total income tax expense for H1 2025 was RMB 2,380,665 thousand, a decrease from the prior year - Some Group entities are recognized as high-tech enterprises, enjoying a preferential income tax rate of **15%** [21](index=21&type=chunk) - Other entities calculate income tax at the statutory income tax rate of **25%** in accordance with relevant Chinese enterprise income tax rules and regulations [21](index=21&type=chunk) Income Tax Expense Composition | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Current income tax expense | 1,574,179 | 3,286,791 | | Deferred income tax expense | 806,486 | 79,946 | | **Total** | **2,380,665** | **3,366,737** | [Dividends](index=10&type=section&id=Dividends) The Board of Directors did not propose an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors did not propose an interim dividend for the six months ended June 30, 2025 (H1 2024: nil) [23](index=23&type=chunk) [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) Basic earnings per share for H1 2025 was RMB 0.04, a significant decrease from RMB 0.25 in H1 2024, primarily due to reduced profit attributable to ordinary equity holders Earnings Per Share Calculation | Indicator | 2025 (RMB in thousands/per share) | 2024 (RMB in thousands/per share) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company | 359,961 | 1,978,021 | | Weighted average number of ordinary shares in issue (in thousands) | 8,015,338 | 8,015,338 | | **Basic earnings per share (RMB)** | **0.04** | **0.25** | - There were no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024, thus diluted earnings per share equal basic earnings per share [25](index=25&type=chunk) [Trade and Bills Receivables](index=10&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade receivables were RMB 12,713,226 thousand with an impairment provision of RMB 1,505,439 thousand, and total bills receivables were RMB 6,234,494 thousand; most trade receivables are current to 1 year, but a high proportion is over 3 years old Trade Receivables and Impairment Provision as of June 30, 2025 | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Gross trade receivables | 12,713,226 | 12,518,966 | | Less: Impairment provision | (1,505,439) | (1,457,105) | | **Net** | **11,207,787** | **11,061,861** | Aging Analysis of Trade Receivables as of June 30, 2025 | Aging | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Current to 1 year | 7,467,071 | 7,218,606 | | 1 to 2 years | 45,062 | 44,780 | | 2 to 3 years | 280,872 | 455,414 | | Over 3 years | 4,920,221 | 4,800,166 | | **Total** | **12,713,226** | **12,518,966** | - As of June 30, 2025, total bills receivables were **RMB 6,234,494 thousand**, of which **RMB 4,754,910 thousand** were pledged as collateral [27](index=27&type=chunk) [Trade and Bills Payables](index=12&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables were RMB 39,255,117 thousand, comprising RMB 28,587,980 thousand in trade payables and RMB 10,667,137 thousand in bills payables, with most trade payables being current to 1 year Trade and Bills Payables as of June 30, 2025 | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Trade payables | 28,587,980 | 32,033,789 | | Bills payables | 10,667,137 | 7,274,630 | | **Total** | **39,255,117** | **39,308,419** | Aging Analysis of Trade Payables as of June 30, 2025 | Aging | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Current to 1 year | 28,410,381 | 31,954,999 | | 1 to 2 years | 126,559 | 41,582 | | 2 to 3 years | 21,454 | 17,721 | | Over 3 years | 29,586 | 19,487 | | **Total** | **28,587,980** | **32,033,789** | [Business Overview](index=13&type=section&id=Business%20Overview) Details the Group's core business activities, including passenger vehicle brands, component production, auto finance, and international operations, emphasizing new energy and intelligent transformation [Main Business Activities](index=13&type=section&id=Main%20Business%20Activities) The Group's main business encompasses R&D, manufacturing, sales, and after-sales services for passenger vehicles, core component production, auto finance, and international operations, accelerating transformation towards new energy and intelligence - The Group's main business covers passenger vehicle R&D, manufacturing, sales and after-sales services, core passenger vehicle component production, auto finance, international business, and other related activities [29](index=29&type=chunk) - The Group is accelerating its transformation towards new energy and intelligence, with passenger vehicle products covering both fuel and new energy models [30](index=30&type=chunk) [Passenger Vehicles](index=13&type=section&id=Passenger%20Vehicles) The Group operates passenger vehicle businesses through four brands: Beijing, Beijing Benz, Beijing Hyundai, and Fujian Benz, covering both fuel and new energy vehicles, accelerating transformation towards new energy and intelligence - The Group operates passenger vehicle businesses through four brands: Beijing Brand, Beijing Benz, Beijing Hyundai, and Fujian Benz [30](index=30&type=chunk) - Product types cover both fuel and new energy vehicles, accelerating transformation and upgrading towards new energy and intelligence [30](index=30&type=chunk) [Beijing Brand](index=13&type=section&id=Beijing%20Brand) The Beijing Brand, an independent brand, offers fuel and new energy sedans, SUVs, and off-road vehicles, focusing on off-road electrification with innovative models like BJ30 and BJ40 - The Beijing Brand is an independent brand, with products covering fuel and new energy models of sedans, SUVs, and off-road vehicles [31](index=31&type=chunk) - It focuses on the off-road/general off-road segment, achieving breakthrough innovations in off-road electrification through deep integration of off-road genes and new energy technologies [31](index=31&type=chunk) - Products include BJ30 Magic Core (leader in 100,000-level hybrid square SUVs), BJ40 Extended Range (camping vehicle), BJ40 Fuel Version (professional off-road fuel-efficient king), and BJ60 (luxury off-road SUV) [31](index=31&type=chunk) - Future product lineup will include over ten models across fuel, pure electric, and hybrid categories [32](index=32&type=chunk) [Beijing Benz](index=14&type=section&id=Beijing%20Benz) Beijing Benz, a 51.0% owned subsidiary and joint venture with Mercedes-Benz Group, is a global leader in producing front-wheel drive, rear-wheel drive, and electric vehicle platforms, including engine and power battery factories - Beijing Benz is a **51.0%** owned subsidiary of the Company, a joint venture with Mercedes-Benz Group [33](index=33&type=chunk) - It is the only joint venture globally within the Mercedes-Benz Group that simultaneously possesses three vehicle platforms (front-wheel drive, rear-wheel drive, electric vehicles) and engine and power battery factories [33](index=33&type=chunk) - It has put into production fuel vehicles such as the long-wheelbase E-Class sedan and long-wheelbase GLC SUV, and launched multiple pure electric and hybrid models including EQE, EQE SUV, E350 e L, and GLC 350 e L [33](index=33&type=chunk) [Beijing Hyundai](index=14&type=section&id=Beijing%20Hyundai) Beijing Hyundai, a 50.0% owned joint venture with Hyundai Motor Company, boasts industry-leading quality and manufacturing, producing and selling compact, mid-size sedans, and SUVs - Beijing Hyundai is a **50.0%** owned joint venture of the Company, with Hyundai Motor Company [34](index=34&type=chunk) - It possesses an industry-leading quality operation system and manufacturing plants, producing and selling compact, mid-size sedans, and SUVs [34](index=34&type=chunk) - Key models include the 7th generation Elantra, Festa N-line, 11th generation Sonata, 5th generation Tucson L, Mufasa, 5th generation Santa Fe, and Custo [34](index=34&type=chunk) [Fujian Benz](index=14&type=section&id=Fujian%20Benz) Fujian Benz, a 35.0% owned joint venture, has produced and sold Mercedes-Benz multi-purpose passenger vehicles since 2010, maintaining a leading position in the joint venture luxury commercial vehicle segment - Fujian Benz is a **35.0%** owned joint venture of the Company, with Fujian Motor Industry Group Co., Ltd. and Mercedes-Benz Light Commercial Vehicles Hong Kong Limited [35](index=35&type=chunk) - It has produced and sold Mercedes-Benz brand multi-purpose passenger vehicles since 2010, with main products being the V-Class and new Vito [35](index=35&type=chunk) - It maintains a leading advantage in the joint venture luxury commercial vehicle segment [35](index=35&type=chunk) [Core Passenger Vehicle Components](index=15&type=section&id=Core%20Passenger%20Vehicle%20Components) The Group produces core components like engines, powertrains, and power batteries through its production bases, utilizing a combination of cooperative and independent R&D for mass production of various fuel and hybrid components - The Group produces core passenger vehicle components such as engines, powertrains, and power batteries through the production bases of Beijing Brand, Beijing Benz, and Beijing Hyundai [36](index=36&type=chunk) - It adopts a combination of cooperative development and independent R&D to achieve mass production of multiple fuel and hybrid engines, range extenders, and transmissions [36](index=36&type=chunk) - Beijing Benz has built two modern engine production bases and the first power battery factory outside Germany [36](index=36&type=chunk) - Beijing Hyundai primarily produces Gamma II series 1.5/1.6 displacement engines [36](index=36&type=chunk) [Auto Finance](index=15&type=section&id=Auto%20Finance) The Group conducts auto finance and after-market businesses for Beijing, Mercedes-Benz, and Hyundai brands through associates and joint ventures, collaborating with various financial institutions to offer diverse financial products - The Group conducts auto finance and after-market related businesses for Beijing Brand, Mercedes-Benz Brand, and Hyundai Brand through its associates and joint ventures [37](index=37&type=chunk) - It collaborates with multiple auto finance companies, commercial banks, and financial leasing companies to provide financial products covering all in-market models and diverse customer needs [37](index=37&type=chunk) [International Business](index=15&type=section&id=International%20Business) The Group's international market operations are managed by Beijing Automotive International Development Co., Ltd., driving rapid global expansion through overseas sales, KD technical cooperation, and vehicle distribution, including a production base in South Africa - The Group's international market marketing business is managed by its wholly-owned subsidiary, Beijing Automotive International Development Co., Ltd [38](index=38&type=chunk) - It promotes rapid development of international business through overseas sales companies, KD technical cooperation, and complete vehicle distribution [38](index=38&type=chunk) - Its joint venture, BAIC South Africa Automotive Co., Ltd., is responsible for the production operations and related marketing in the South African production base [38](index=38&type=chunk) [Operational Review and Outlook](index=16&type=section&id=Operational%20Review%20and%20Outlook) Reviews H1 2025 industry trends and Group operations, highlighting new energy development, marketing, user-centric strategies, overseas expansion, and outlines H2 2025 outlook [H1 2025 Industry Development](index=16&type=section&id=H1%202025%20Industry%20Development) In H1 2025, the automotive industry maintained positive momentum with rapid growth in new energy vehicles, resilient exports, and increased market share for Chinese brands, supported by national policies - In H1 2025, the automotive industry continued its positive trend, with rapid growth in new energy vehicles, sustained resilience in automotive exports, and an increased market share for Chinese brand passenger vehicles [40](index=40&type=chunk) - In H1 2025, passenger vehicle sales reached **13.531 million units**, a **13% year-on-year increase**, with **2.581 million units** exported [40](index=40&type=chunk) - National policies from the National Development and Reform Commission and the Ministry of Finance were released, continuously boosting end-market demand for automobiles and promoting industry development [40](index=40&type=chunk) [H1 2025 Group Operations](index=16&type=section&id=H1%202025%20Group%20Operations) In H1 2025, guided by "survival, reform, development," the Group focused on domestic and international markets and star product portfolios, achieving 421 thousand wholesale and 427 thousand retail vehicle sales, improving operational efficiency and quality - In H1 2025, the Group was guided by the policy of "survival, reform, and development," focusing on both "domestic and international" strategic markets [41](index=41&type=chunk) - During the reporting period, Beijing Brand, Beijing Benz, Beijing Hyundai, and Fujian Benz collectively achieved **421 thousand** wholesale vehicle sales and **427 thousand** retail vehicle sales [41](index=41&type=chunk) [New Energy Development Direction](index=16&type=section&id=New%20Energy%20Development%20Direction) The Group is committed to new energy development, continuously improving its new energy product matrix and achieving breakthroughs in its new energy strategy - The Group firmly adheres to the new energy development direction, continuously improving its new energy product matrix and promoting in-depth breakthroughs in its new energy strategy [42](index=42&type=chunk) - Beijing Brand created the BJ30 and BJ40 extended-range twin products, integrating off-road and new energy technologies [42](index=42&type=chunk) - Beijing Benz unveiled its first model based on the Mercedes-Benz Modular Architecture (MMA), the new pure electric long-wheelbase CLA [42](index=42&type=chunk) - Beijing Hyundai's first pure electric SUV was publicly unveiled, and Fujian Benz initiated the construction of the Mercedes-Benz New Energy Commercial Vehicle Platform (VAN.EA) in China [42](index=42&type=chunk) [New Marketing Channels](index=17&type=section&id=New%20Marketing%20Channels) The Group fully embraces new media, building a new media communication matrix and quality content ecosystem to integrate R&D, production, supply, sales, and service - The Group fully embraces new media, building a new media communication matrix and a quality content ecosystem to facilitate the integration of R&D, production, supply, sales, and service [44](index=44&type=chunk) - Beijing Brand's "Western Frontier Off-road" plan integrates western characteristics with off-road advantages, promoting both brand and market enhancement [44](index=44&type=chunk) - Beijing Benz created a "hit IP" through its "Anchors Take You to Explore BBAC" project to boost marketing [44](index=44&type=chunk) - Beijing Hyundai expanded brand awareness and drove sales growth through live streaming and co-creation with car owners [44](index=44&type=chunk) [User-Centric Enterprise Building](index=17&type=section&id=User-Centric%20Enterprise%20Building) Beijing Auto adheres to a user-centric development philosophy, adapting to market changes and user needs, evolving brand value, product layout, and user experience - Beijing Auto adheres to its original intention of "user-centric" development, actively adapting to market changes and user needs [45](index=45&type=chunk) - Beijing Brand achieved a full-dimensional evolution from brand value and product layout to user experience [45](index=45&type=chunk) - Beijing Benz specifically created the new pure electric long-wheelbase CLA for the Chinese market, expanding choices for pure electric luxury travel [45](index=45&type=chunk) - In the future, it will continuously improve user satisfaction through multi-dimensional strategies including perfecting the product system, upgrading brand services, and optimizing the ecosystem experience [45](index=45&type=chunk) [Overseas Business Expansion](index=18&type=section&id=Overseas%20Business%20Expansion) The Group continues to deepen overseas business expansion, comprehensively enhancing its systematic capabilities, accelerating product development and certification, and refining channel construction - The Group continues to promote in-depth breakthroughs in overseas business, comprehensively enhancing its systematic capabilities for international operations [46](index=46&type=chunk) - Beijing Brand accelerates overseas product development and certification, promoting multiple popular products to overseas markets and refining channel construction [46](index=46&type=chunk) - Beijing Hyundai actively expands overseas markets, enriching export models and regions, striving to improve operational quality through a "domestic sales + export" dual-driven approach [46](index=46&type=chunk) [Sales Network and Channels](index=18&type=section&id=Sales%20Network%20and%20Channels) Each brand maintains independent sales channels, focusing on enhancing product service systems and upgrading sales networks through channel innovation, digital marketing, and optimized layouts - Each brand has independent sales channels, committed to improving the product service system and providing timely, efficient, accurate, and high-quality service guarantees [47](index=47&type=chunk) - Beijing Brand drives sales network upgrades through channel innovation and user operations, adding multiple stores and building new channel partnerships [47](index=47&type=chunk) - Beijing Benz continuously promotes its network upgrade plan, enhancing the image, functions, processes, and service teams of offline touchpoints, and focusing on digital marketing [47](index=47&type=chunk) - Beijing Hyundai actively promotes network layout optimization, stabilizes channel operations, and enhances brand awareness and customer value conversion through hot-spot marketing and new media matrix [48](index=48&type=chunk) [Production Facilities and Quality Management](index=19&type=section&id=Production%20Facilities%20and%20Quality%20Management) The Group operates specialized production facilities with flexible production lines, equipped with advanced digital and intelligent quality management systems to ensure high automation and product quality - The Group possesses specialized production facilities for manufacturing and assembling products, all equipped with flexible production lines capable of adapting production plans and quickly responding to market demand changes [49](index=49&type=chunk) - Beijing Brand's Zhuzhou and Guangzhou factories adopt advanced digital and intelligent production quality management systems, continuously improving product quality [49](index=49&type=chunk) - Beijing Benz has built the "most comprehensive and strongest production base globally" for Mercedes-Benz, characterized by "digitalization, flexibility, efficiency, and sustainability," and was listed among Beijing's advanced intelligent factories in 2025 [49](index=49&type=chunk) - Beijing Hyundai adheres to a "green, quality, intelligent, and efficient" production philosophy, relying on intelligent production equipment and an international management system to ensure high automation rates and product quality [49](index=49&type=chunk) [Supply Chain Synergy](index=19&type=section&id=Supply%20Chain%20Synergy) In H1 2025, the Group deepened industrial-financial synergy and cooperation, refining the entire R&D, production, supply, and sales chain to strengthen core competitiveness - In H1 2025, the Group continued to deepen industrial-financial synergy and industrial cooperation, refining the entire R&D, production, supply, and sales chain to strengthen core competitiveness [50](index=50&type=chunk) - Moving forward, guided by the overall operational strategy, it will unleash internal and external synergistic potential, link all aspects of the industrial chain, and continuously solidify its competitive foundation in the industry [50](index=50&type=chunk) [Employee Information](index=20&type=section&id=Employee%20Information) As of June 30, 2025, the Group's total number of employees was 31,885, a slight increase from 31,705 as of December 31, 2024 - As of June 30, 2025, the Group's total number of employees was **31,885** (December 31, 2024: 31,705) [51](index=51&type=chunk) [H2 2025 Outlook](index=20&type=section&id=H2%202025%20Outlook) H2 2025 outlook anticipates increased auto consumption driven by national policies and new product launches, despite complex external environment and intense competition; the Group will focus on marketing, cost control, and quality to expand market share - Looking ahead to H2, the orderly implementation of "two new" policies and continuous enrichment of new product offerings by enterprises are expected to boost automotive consumption, yet the external environment remains complex, severe, and uncertain, with intense industry competition [52](index=52&type=chunk) - In H2 2025, the Group will focus on "marketing empowerment, cost control, and quality improvement" as its operational core, aiming to expand market share and enhance investment efficiency [52](index=52&type=chunk) - Each brand will specifically cultivate target markets, consolidate its leading position in the high-end luxury car market, improve operational quality, and deepen practices of quality enhancement and efficiency improvement [52](index=52&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) Analyzes H1 2025 financial results, including revenue, net profit, gross profit, liquidity, investments, R&D, foreign exchange, asset pledges, and contingent liabilities [Revenue and Net Profit Attributable to Equity Holders](index=21&type=section&id=Revenue%20and%20Net%20Profit%20Attributable%20to%20Equity%20Holders) In H1 2025, Group revenue decreased by 12.6% to RMB 82,398.5 million due to price competition and lower sales, while net profit attributable to equity holders significantly dropped 81.8% to RMB 360.0 million, resulting in basic EPS of RMB 0.04 - The Group's revenue for H1 2025 was **RMB 82,398.5 million**, a **12.6% decrease** from H1 2024, primarily due to price competition and changes in sales volume [53](index=53&type=chunk) - The Group recorded a net profit attributable to equity holders of the Company of **RMB 360.0 million** in H1 2025, an **81.8% decrease** from H1 2024 [53](index=53&type=chunk) - Basic earnings per share for H1 2025 was **RMB 0.04** [53](index=53&type=chunk) [Gross Profit](index=21&type=section&id=Gross%20Profit) In H1 2025, the Group's gross profit decreased by 32.2% to RMB 11,920.5 million, primarily due to intense price competition and lower sales volume - The Group's gross profit for H1 2025 was **RMB 11,920.5 million**, a **32.2% decrease** from H1 2024, primarily due to price competition and changes in sales volume [54](index=54&type=chunk) [Liquidity and Financial Resources](index=21&type=section&id=Liquidity%20and%20Financial%20Resources) H1 2025 net cash inflow from operating activities decreased by 83.0% to RMB 1,961.0 million; as of June 30, 2025, the Group held RMB 25,540.8 million in cash and equivalents and RMB 33,819 million in unused bank facilities, with a liability-to-asset ratio of 52.5% and a net debt-to-equity ratio of negative 28.2%, up 18.6 percentage points due to reduced cash - The Group's net cash generated from operating activities in H1 2025 was **RMB 1,961.0 million**, an **83.0% decrease** from H1 2024, primarily due to reduced net cash inflow from operating activities [55](index=55&type=chunk) - As of June 30, 2025, the Group held cash and cash equivalents of **RMB 25,540.8 million** and had unused short-term and long-term bank financing facilities of approximately **RMB 33,819 million** [55](index=55&type=chunk) - As of June 30, 2025, the Group's liability-to-asset ratio was **52.5%**, a **1.9 percentage point decrease** from year-end 2024 [56](index=56&type=chunk) - As of June 30, 2025, the Group's net debt-to-equity ratio was **negative 28.2%**, an **18.6 percentage point increase** from year-end 2024, primarily due to a significant decrease in cash and cash equivalents [56](index=56&type=chunk) [Significant Investments and R&D Expenses](index=22&type=section&id=Significant%20Investments%20and%20R%26D%20Expenses) H1 2025 capital expenditure increased to RMB 2,464.1 million, while R&D expenses decreased to RMB 1,372.3 million, primarily for product development activities - The Group's total capital expenditure in H1 2025 was **RMB 2,464.1 million**, compared to **RMB 2,214.1 million** in H1 2024 [57](index=57&type=chunk) - The Group's total R&D expenses in H1 2025 were **RMB 1,372.3 million**, compared to **RMB 1,802.3 million** in H1 2024 [57](index=57&type=chunk) - R&D expenses were primarily for the Group's product development activities, with amounts meeting capitalization criteria being capitalized [57](index=57&type=chunk) [Significant Acquisitions and Disposals](index=22&type=section&id=Significant%20Acquisitions%20and%20Disposals) The Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures in H1 2025 - The Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures in H1 2025 [58](index=58&type=chunk) [Foreign Currency Exchange Gains/Losses](index=23&type=section&id=Foreign%20Currency%20Exchange%20Gains%2FLosses) In H1 2025, the Group recorded foreign currency exchange gains of RMB 43.5 million, a turnaround from a loss of RMB 320.1 million in H1 2024, attributed to effective hedging with forward contracts and RMB appreciation against the Euro - The Group generated foreign currency exchange gains of **RMB 43.5 million** in H1 2025, compared to exchange losses of **RMB 320.1 million** in H1 2024 [59](index=59&type=chunk) - This was primarily due to effective hedging of exchange rate risks through forward foreign exchange contracts and increased exchange gains from Euro-denominated payables due to changes in the RMB to Euro exchange rate [59](index=59&type=chunk) - The Group employs a mature foreign exchange management strategy, continuously and orderly hedging exchange rate risks, primarily using forward foreign exchange contracts as hedging instruments [59](index=59&type=chunk) [Pledge of Assets](index=23&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had pledged bills receivables totaling RMB 4,754.9 million - As of June 30, 2025, the Group had pledged bills receivables totaling **RMB 4,754.9 million** [60](index=60&type=chunk) [Contingent Liabilities](index=23&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities [61](index=61&type=chunk) [Significant Litigation and Arbitration](index=23&type=section&id=Significant%20Litigation%20and%20Arbitration) As of June 30, 2025, the Company had no significant litigation or arbitration matters, nor were directors aware of any material adverse litigation or claims - As of June 30, 2025, the Company had no significant litigation or arbitration matters [62](index=62&type=chunk) - The directors were also unaware of any pending significant litigation or claims that would have a material adverse effect on the Company [62](index=62&type=chunk) [Events After Reporting Period](index=23&type=section&id=Events%20After%20Reporting%20Period) No events with significant impact on the Group occurred after the reporting period - No events with significant impact on the Group occurred after the reporting period [63](index=63&type=chunk) [Interim Dividends](index=23&type=section&id=Interim%20Dividends) The Board of Directors did not propose an interim dividend for H1 2025 - The Board of Directors did not propose an interim dividend for H1 2025 [64](index=64&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=Corporate%20Governance%20and%20Other%20Information) Covers compliance with corporate governance codes, changes in board and supervisory committees, audit committee review, and publication details [Purchase, Sale or Redemption of Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held as of June 30, 2025 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period [66](index=66&type=chunk) - As of June 30, 2025, the Company held no treasury shares [67](index=67&type=chunk) [Compliance with Corporate Governance Code](index=24&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Group is committed to high corporate governance standards, adopting the Corporate Governance Code in Appendix C1 of the Listing Rules, and has consistently complied with its provisions during the reporting period - The Group is committed to establishing and maintaining high standards of corporate governance to protect shareholders' interests and enhance corporate value and responsibility [68](index=68&type=chunk) - The Company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and established a modern corporate governance structure with effective checks and balances and independent operations among the general meeting, Board of Directors, Supervisory Committee, and senior management [68](index=68&type=chunk) - The Company has consistently complied with the provisions of the Corporate Governance Code during the reporting period [69](index=69&type=chunk) [Compliance with Standard Securities Trading Code](index=24&type=section&id=Compliance%20with%20Standard%20Securities%20Trading%20Code) The Company adopted the Standard Securities Trading Code for Directors of Listed Issuers (Appendix C3 of Listing Rules) for all directors, supervisors, and senior management, who confirmed strict compliance during the reporting period - The Company has adopted the "Standard Securities Trading Code for Directors of Listed Issuers" set out in Appendix C3 of the Listing Rules as the code of conduct for all directors, supervisors, and senior management when dealing in the Company's securities [70](index=70&type=chunk) - Following the Company's inquiry, all directors, supervisors, and senior management confirmed strict compliance with the Standard Code during the reporting period [71](index=71&type=chunk) [Changes in Board and Committees](index=24&type=section&id=Changes%20in%20Board%20and%20Committees) On March 13, 2025, Mr. Chen Wei resigned as Chairman, and Mr. Wang Hao was appointed Executive Director, Chairman, and head of the Strategy and Nomination Committees; no other changes occurred in the Board or committees during the period - On March 13, 2025, Mr. Chen Wei ceased to be Chairman, Non-executive Director, Chairman of the Strategy Committee, and Chairman of the Nomination Committee due to work changes [72](index=72&type=chunk) - On the same day, Mr. Wang Hao was appointed as a Non-executive Director and, at the Board meeting, was appointed as an Executive Director, Chairman, Chairman of the Strategy Committee, and Chairman of the Nomination Committee [72](index=72&type=chunk) - Except for the aforementioned disclosures, there were no other changes in the composition of the Board, Strategy Committee, Audit Committee, Nomination Committee, or Remuneration Committee during the period from January 1, 2025, to the date of this announcement [73](index=73&type=chunk) [Changes in Supervisory Committee](index=25&type=section&id=Changes%20in%20Supervisory%20Committee) Ms. Zhu Yan resigned as non-employee representative supervisor on January 16, 2025, and Mr. Xia Peng was appointed to the role on March 13, 2025 - On January 16, 2025, Ms. Zhu Yan ceased to be a non-employee representative supervisor due to work adjustments [74](index=74&type=chunk) - On March 13, 2025, Mr. Xia Peng was appointed as a non-employee representative supervisor [74](index=74&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising Mr. Xue Lipin (Chairman), Mr. Hu Hanjun, and Mr. Tang Jun (two independent non-executive directors), has reviewed the Group's unaudited interim financial statements and results for H1 2025 - The Company has established an Audit Committee and formulated its written terms of reference [75](index=75&type=chunk) - The Audit Committee members are Mr. Xue Lipin (Chairman), Mr. Hu Hanjun, and Mr. Tang Jun, two of whom are independent non-executive directors [75](index=75&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim financial statements, H1 2025 interim results, and H1 2025 interim report [75](index=75&type=chunk) [Publication of Report](index=25&type=section&id=Publication%20of%20Report) This interim results announcement will be published on the HKEX and Company websites, with the full 2025 interim report to follow, containing all information required by the Listing Rules - This interim results announcement will be published on the website of The Stock Exchange of Hong Kong Limited (www.hkex.com.hk) and the Company's website (www.baicmotor.com) [76](index=76&type=chunk) - The Company will timely publish the 2025 interim report, containing all information required by the Listing Rules, on the Company's and HKEX websites [76](index=76&type=chunk)

[Corporate Information](index=3&type=section&id=Corporate%20Information) [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section outlines the composition of the company's Board of Directors, including executive, non-executive, and independent non-executive directors, detailing the members and chairpersons of its Audit, Remuneration, Nomination, and ESG Committees - The Board of Directors includes executive directors such as Mr. Hua Bingru (Chairman) and Mr. Chen Caixiong (CEO), and independent non-executive directors like Mr. Yu Kefei[4](index=4&type=chunk)[6](index=6&type=chunk) - The company has an Audit Committee (Chairman: Mr. Yu Kefei), a Remuneration Committee (Chairman: Mr. Shen Tianfeng), a Nomination Committee (Chairperson: Ms. Luo Yan), and an Environmental, Social and Governance Committee (Chairman: Dr. Liu Jiancheng)[4](index=4&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) [Company Details and Advisors](index=4&type=section&id=Company%20Details%20and%20Advisors) This section provides key corporate information including the company's principal bankers, registered office, China headquarters, Hong Kong principal place of business, auditor, Hong Kong legal counsel, share registrar, stock code, and website - Principal bankers include Bank of China (Hong Kong) Limited and China Merchants Bank Hangzhou Linping Branch[8](index=8&type=chunk)[9](index=9&type=chunk) - The auditor is PricewaterhouseCoopers[9](index=9&type=chunk)[10](index=10&type=chunk) - The company's stock code is **2420**, and its official website is www.zbycorp.com[12](index=12&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview](index=6&type=section&id=Business%20Overview) Zibuyu Group aims to be a global fashion brand operating company, offering fashion apparel and footwear through third-party e-commerce platforms (e.g., Amazon, TikTok, Temu) and proprietary websites, achieving significant revenue and net profit growth in H1 2025 despite external challenges - The company provides fashion apparel and footwear products to global users through third-party e-commerce platforms like Amazon, TikTok, Temu, and its proprietary websites[14](index=14&type=chunk)[17](index=17&type=chunk) - H1 2025 Key Financial Data (YoY) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth Rate | | :--- | :-------------------------- | :-------------------------- | :--------- | | Total Revenue | 1,961.3 | 1,462.1 | 34.1% | | Net Profit Attributable to Shareholders | 105.9 | 91.4 | 15.9% | - In H1 2025, the company enhanced brand power across multiple dimensions, including brand-oriented departmental restructuring, core brand visual upgrades, original product design, and overseas social media content marketing[16](index=16&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - Non-Amazon channel revenue grew rapidly, with TikTok and Temu platform revenues increasing by **51.3%** and **79.3%** year-on-year, respectively; proprietary website revenue surged by nearly **9 times** year-on-year[36](index=36&type=chunk)[38](index=38&type=chunk) - The company achieved its first overseas production breakthrough, focusing on Vietnam supply chain layout and expanding production capacity in Southeast Asia, including Myanmar, Malaysia, and Cambodia[37](index=37&type=chunk)[38](index=38&type=chunk) - The company strengthened organizational capabilities by implementing a 4.5-day work week, enhancing employee benefits and work efficiency[40](index=40&type=chunk)[42](index=42&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) This section reviews the Group's financial performance for H1 2025, covering revenue, cost of sales, gross profit, other income, net other gains, selling and distribution expenses, general and administrative expenses, finance costs, profit before income tax, income tax expense, and profit attributable to shareholders, alongside capital expenditure, liquidity, and gearing ratio analysis - H1 2025 Key Financial Indicators (YoY) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth Rate | | :--- | :-------------------------- | :-------------------------- | :--------- | | Revenue | 1,961.3 | 1,462.1 | 34.1% | | Cost of Sales | 487.4 | 381.2 | 27.9% | | Gross Profit | 1,474.0 | 1,080.9 | 36.4% | | Gross Margin | 75.2% | 73.9% | 1.3 percentage points | | Selling and Distribution Expenses | 1,322.2 | 941.7 | 40.4% | | General and Administrative Expenses | 52.9 | 57.8 | -8.5% | | Finance Costs | 2.8 | 4.4 | -35.9% | | Profit Before Income Tax | 107.7 | 93.3 | 15.4% | | Income Tax Expense | 1.8 | 2.0 | -6.5% | | Profit Attributable to Shareholders | 105.9 | 91.4 | 15.9% | | Basic and Diluted Earnings Per Share | 0.22 | 0.18 | 22.2% | - H1 2025 Revenue by Sales Channel (RMB thousand) | Sales Channel | H1 2025 | H1 2024 | | :------- | :----------- | :----------- | | Amazon | 1,815,946 | 1,376,857 | | Temu | 50,439 | 28,132 | | TikTok | 40,037 | 26,467 | | Other Third-Party E-commerce Platforms | 11,918 | 9,378 | | Proprietary Websites | 35,505 | 3,614 | | Others | 7,480 | 17,684 | | **Total** | **1,961,325** | **1,462,132** | - H1 2025 Revenue by Geographical Location (RMB thousand) | Geographical Location | H1 2025 | H1 2024 | | :------- | :----------- | :----------- | | North America | 1,926,558 | 1,396,891 | | Asia | 21,684 | 47,435 | | Europe | 6,203 | 9,488 | | Others | 6,880 | 8,318 | | **Total** | **1,961,325** | **1,462,132** | - Capital expenditure was approximately **RMB 3.3 million**, an increase of approximately **RMB 2.2 million** compared to the same period last year, primarily due to increased purchases of office equipment and smart information systems[85](index=85&type=chunk)[89](index=89&type=chunk) - The gearing ratio increased from approximately **44.4%** as of December 31, 2024, to approximately **48.7%** as of June 30, 2025, mainly due to increased trade payables and a decrease in equity from declared cash dividends[97](index=97&type=chunk)[99](index=99&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section covers the Group's significant investments, acquisitions, and disposals, future investment plans, asset pledges, foreign exchange risk management, employees and staff costs, and continuing connected transactions during the reporting period - There were no significant investments, acquisitions, or disposals, nor any material capital commitments or significant litigation during the reporting period[100](index=100&type=chunk)[105](index=105&type=chunk)[86](index=86&type=chunk)[90](index=90&type=chunk)[87](index=87&type=chunk)[91](index=91&type=chunk) - As of June 30, 2025, the Group had **1,058** full-time employees, with total staff costs of approximately **RMB 121.6 million**, a year-on-year increase of **18.9%**[110](index=110&type=chunk) - The Group faces foreign exchange risk, but it was not significantly affected during the reporting period, currently has no foreign exchange hedging policy, but management will closely monitor it[103](index=103&type=chunk)[104](index=104&type=chunk)[108](index=108&type=chunk) - Two continuing connected transactions were entered into with Hangzhou Shuzhi Technology Co., Ltd., involving smart advertising system construction and development services (RMB 2.70 million) and smart advertising subscription services (1.5%-2% of Amazon advertising spend)[117](index=117&type=chunk)[119](index=119&type=chunk) [Future Prospects](index=26&type=section&id=Future%20Prospects) The Group's outlook for H2 2025 involves adhering to its "Rooted in China, Global Reach" strategy, focusing on consumer demand, driving product innovation, enhancing organizational operational efficiency, and strengthening competitive advantages through brand building, integrated marketing, omnichannel expansion, global supply chain optimization, organizational development, and leveraging AI opportunities - Deepen brand building by continuously optimizing the top ten core brands and establishing a brand matrix covering high, mid, and low-end markets[122](index=122&type=chunk) - Implement integrated marketing strategies, expand media cooperation to increase brand exposure, build proprietary websites to cultivate private domain traffic, and prepare for offline events to promote localized marketing[122](index=122&type=chunk) - Continue to expand the omnichannel sales system, accelerate sales growth in non-Amazon channels, vigorously develop proprietary websites, and strategically plan for overseas offline channels[122](index=122&type=chunk) - Strengthen the global high-end supply chain layout, focusing on promoting Southeast Asian supply chain construction and increasing the proportion of international production capacity[122](index=122&type=chunk) - Enhance organizational capabilities, broaden talent structure, and build an international talent pipeline; seize AI development opportunities, continuously advance digital transformation, and empower various business processes with AI[122](index=122&type=chunk) [Corporate Governance and Other Information](index=27&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Interests and Short Positions of Directors and Chief Executive](index=27&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%20and%20Chief%20Executive) This section discloses the interests and short positions of the company's directors and chief executive in the company's shares as of the end of the reporting period, primarily long positions held through controlled corporations or discretionary trusts - Directors' and Chief Executive's Shareholdings (as of June 30, 2025) | Director/Chief Executive Name | Nature of Interest | Number of Shares (L) | Approximate Percentage of Shareholding | | :------------------- | :--------- | :----------- | :------------- | | Mr. Hua Bingru | Interest in controlled corporation/Founder of discretionary trust | 236,056,036 | 47.21% | | Mr. Wang Weiping | Interest in controlled corporation/Founder of discretionary trust | 22,608,772 | 4.52% | | Mr. Dong Zhenguo | Interest in controlled corporation/Founder of discretionary trust | 19,634,654 | 3.93% | [Interests and Short Positions of Substantial Shareholders](index=29&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders) This section lists the interests and short positions of substantial shareholders, other than directors and the chief executive, in the company's shares as of the end of the reporting period, including long positions held through controlled corporations or discretionary trusts - Substantial Shareholders' Shareholdings (as of June 30, 2025) | Substantial Shareholder Name/Entity | Nature of Interest | Number of Shares (L) | Approximate Percentage of Shareholding | | :---------------- | :--------- | :----------- | :------------- | | Hone Ru | Interest in controlled corporation | 236,056,036 | 47.21% | | Gfxtmyun | Interest in controlled corporation | 236,056,036 | 47.21% | | TMY ONE | Beneficial interest | 236,056,036 | 47.21% | | Ms. Yu Feng | Interest in controlled corporation/Founder of discretionary trust | 25,088,421 | 5.02% | | Wiloru Holdings | Interest in controlled corporation | 25,088,421 | 5.02% | | Hyufeng | Beneficial interest | 25,088,421 | 5.02% | | Mr. Wang Shijian | Founder of discretionary trust | 44,466,717 | 8.89% | | Ms. Rao Xingxing | Interest in controlled corporation/Spouse's interest/Founder of discretionary trust | 44,466,717 | 8.89% | | Chichiboy Holdings Limited | Interest in controlled corporation | 44,466,717 | 8.89% | | Xringirl | Beneficial interest | 44,466,717 | 8.89% | | TMY THREE | Beneficial interest | 27,751,508 | 5.55% | [Share Schemes](index=31&type=section&id=Share%20Schemes) The company adopted the Share Award Scheme (Existing Shares) and Share Award Scheme (New Shares) in 2023 to incentivize employees; no awards were granted during the reporting period, but the trustee repurchased some shares under the Existing Shares Scheme - The company adopted the Share Award Scheme (Existing Shares) and the Share Award Scheme (New Shares) on September 15, 2023, and December 1, 2023, respectively[136](index=136&type=chunk)[140](index=140&type=chunk) - During the reporting period, no awards were granted, cancelled, or lapsed under the Share Award Schemes[136](index=136&type=chunk)[140](index=140&type=chunk) - The maximum number of awards that can be granted under the Share Award Scheme (Existing Shares) and (New Shares) are **50,000,000** shares and **25,000,000** shares, respectively[137](index=137&type=chunk)[140](index=140&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the reporting period, the trustee of the Share Award Scheme (Existing Shares) purchased 1,709,500 shares on the Stock Exchange for a total of HKD 8,616,045, with no other purchases, sales, or redemptions of listed securities by the company or its subsidiaries - The trustee of the Share Award Scheme (Existing Shares) purchased a total of **1,709,500** shares for a total of **HKD 8,616,045**[143](index=143&type=chunk)[147](index=147&type=chunk) - During the reporting period, there were no other purchases, sales, or redemptions of the company's listed securities by the company or any of its subsidiaries[144](index=144&type=chunk)[147](index=147&type=chunk) [Interim Dividend](index=32&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the reporting period - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (H1 2024: nil)[145](index=145&type=chunk)[148](index=148&type=chunk) [Corporate Governance Compliance](index=33&type=section&id=Corporate%20Governance%20Compliance) The company is committed to maintaining high standards of corporate governance, has fully complied with the Corporate Governance Code, adopted the Model Code for securities transactions by directors, established an ESG Committee, and detailed the composition and responsibilities of the Audit Committee - The company established an Environmental, Social and Governance (ESG) Committee on March 27, 2025, to enhance its governance structure[149](index=149&type=chunk)[155](index=155&type=chunk) - During the reporting period and up to the date of this interim report, the company has fully complied with the code provisions set out in the Corporate Governance Code[151](index=151&type=chunk)[156](index=156&type=chunk) - All directors confirmed full compliance with the Model Code for Securities Transactions by Directors, which has been extended to designated employees[153](index=153&type=chunk)[158](index=158&type=chunk) - The Audit Committee comprises four independent non-executive directors, with Mr. Yu Kefei as Chairman, possessing appropriate accounting and financial management expertise[159](index=159&type=chunk)[162](index=162&type=chunk) [Use of Proceeds from Global Offering](index=35&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) This section details the use of net proceeds from the global offering (HKD 216.4 million), disclosing the Board's resolution to reallocate part of the unutilized funds from supply chain management systems to enhancing sales and brand promotion capabilities, with full utilization expected by December 31, 2025 - The net proceeds from the global offering amounted to **HKD 216.4 million**[164](index=164&type=chunk)[165](index=165&type=chunk) - The Board resolved to reallocate unutilized funds designated for improving supply chain management systems to enhancing the company's sales and brand promotion capabilities[164](index=164&type=chunk)[165](index=165&type=chunk) - Summary of Use of Proceeds from Global Offering (as of June 30, 2025, HKD million) | Use Category | Net Proceeds from Global Offering | Unutilized as of Dec 31, 2024 | Utilized During Reporting Period | Unutilized as of June 30, 2025 | | :------- | :----------------- | :------------------- | :------------- | :------------- | | Enhance sales and brand promotion capabilities | 81.2 | 3.7 | 3.6 | 0.1 | | Improve supply chain management system | 61.9 | 24.9 | 5.4 | 19.5 | | Establish large independent proprietary websites | 50.4 | 9.1 | 8.3 | 0.8 | | Enhance product R&D capabilities | 11.4 | 3.4 | 3.1 | 0.3 | | Upgrade and purchase IT infrastructure | 11.5 | 0.0 | 0.0 | 0.0 | | **Total** | **216.4** | **41.1** | **20.4** | **20.7** | - The company expects to fully utilize the unutilized net proceeds by December 31, 2025[168](index=168&type=chunk) [Subsequent Events and No Material Changes](index=37&type=section&id=Subsequent%20Events%20and%20No%20Material%20Changes) This section confirms that, apart from the disclosed changes in the use of global offering proceeds, there have been no material subsequent events or significant changes affecting the company's performance from the end of the reporting period up to the date of this report - Except for the changes in the use of global offering proceeds disclosed in this report, there have been no material subsequent events from the end of the reporting period up to the date of this report[170](index=170&type=chunk)[173](index=173&type=chunk) - There have been no material changes affecting the company's performance since the publication of the 2024 annual report up to the date of this report[171](index=171&type=chunk)[174](index=174&type=chunk) [Condensed Consolidated Interim Statement of Comprehensive Income](index=38&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) This statement presents Zibuyu Group's unaudited condensed consolidated interim statement of comprehensive income for the six months ended June 30, 2025, detailing revenue, cost of sales, gross profit, various expenses, operating profit, finance costs, income tax expense, and ultimately profit and total comprehensive income attributable to the company's shareholders, with comparative data for the same period in 2024 - Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30, 2025, RMB thousand) | Indicator | 2025 | 2024 | | :--- | :----- | :----- | | Revenue | 1,961,325 | 1,462,132 | | Cost of Sales | (487,361) | (381,206) | | Gross Profit | 1,473,964 | 1,080,926 | | Selling and Distribution Expenses | (1,322,174) | (941,704) | | General and Administrative Expenses | (52,948) | (57,787) | | Net Impairment Losses on Financial Assets | (257) | (122) | | Other Income | 6,696 | 5,410 | | Other Gains, Net | 5,310 | 10,976 | | Operating Profit | 110,591 | 97,699 | | Finance Costs | (2,844) | (4,368) | | Profit Before Income Tax | 107,747 | 93,331 | | Income Tax Expense | (1,838) | (1,966) | | Profit and Total Comprehensive Income Attributable to Shareholders of the Company | 105,909 | 91,365 | | Basic and Diluted Earnings Per Share (RMB) | 0.22 | 0.18 | [Condensed Consolidated Interim Statement of Financial Position](index=39&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) This statement presents Zibuyu Group's unaudited condensed consolidated interim statement of financial position as of June 30, 2025, showing non-current assets, current assets, non-current liabilities, current liabilities, and total equity attributable to the company's shareholders, with comparative data as of December 31, 2024 - Condensed Consolidated Interim Statement of Financial Position (As of June 30, 2025, RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | **Assets** | | | | Total Non-Current Assets | 45,561 | 42,935 | | Total Current Assets | 1,209,397 | 1,036,652 | | **Total Assets** | **1,254,958** | **1,079,587** | | **Liabilities** | | | | Total Non-Current Liabilities | 15,860 | 10,177 | | Total Current Liabilities | 594,738 | 469,139 | | **Total Liabilities** | **610,598** | **479,316** | | **Equity** | | | | Total Equity Attributable to Shareholders of the Company | 644,360 | 600,271 | | **Total Equity and Liabilities** | **1,254,958** | **1,079,587** | - As of June 30, 2025, inventories increased to **RMB 599.3 million** (December 31, 2024: RMB 374.5 million)[178](index=178&type=chunk) - As of June 30, 2025, cash and cash equivalents decreased to **RMB 347.0 million** (December 31, 2024: RMB 446.8 million)[178](index=178&type=chunk) - As of June 30, 2025, trade and other payables increased to **RMB 409.3 million** (December 31, 2024: RMB 318.1 million), and borrowings increased to **RMB 168.7 million** (December 31, 2024: RMB 130.0 million)[181](index=181&type=chunk) [Condensed Consolidated Interim Statement of Changes in Equity](index=41&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) This statement presents Zibuyu Group's unaudited condensed consolidated interim statement of changes in equity for the six months ended June 30, 2025, detailing the opening balances of share capital, share premium, shares held for employee share schemes, other reserves, and retained earnings, as well as the impact of profit for the period, dividend distribution, and share repurchases on total equity - Condensed Consolidated Interim Statement of Changes in Equity (For the six months ended June 30, 2025, RMB thousand) | Indicator | Balance as of Jan 1, 2025 | Profit for the Period | Dividend Distribution to Shareholders | Shares Acquired Under Employee Share Scheme | Balance as of June 30, 2025 | | :--- | :------------------- | :------- | :--------------- | :------------------- | :--------------- | | Share Capital | 174 | — | — | — | 174 | | Share Premium | 1,581,592 | — | (53,856) | — | 1,527,736 | | Shares Held for Employee Share Scheme | (50,155) | — | — | (7,964) | (58,119) | | Other Reserves | (1,267,510) | — | — | — | (1,267,510) | | Retained Earnings | 336,170 | 105,909 | — | — | 442,079 | | **Total** | **600,271** | **105,909** | **(53,856)** | **(7,964)** | **644,360** | - In H1 2025, profit attributable to shareholders of the company was **RMB 105.9 million**[184](index=184&type=chunk) - Dividends of **RMB 53.9 million** were distributed to shareholders, resulting in a reduction in share premium[184](index=184&type=chunk) - The acquisition of shares under the employee share scheme resulted in a reduction in equity of **RMB 8.0 million**[184](index=184&type=chunk) [Condensed Consolidated Interim Statement of Cash Flows](index=42&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) This statement presents Zibuyu Group's unaudited condensed consolidated interim statement of cash flows for the six months ended June 30, 2025, including net cash flows from operating, investing, and financing activities, as well as the impact of exchange rate changes on cash and cash equivalents, ultimately resulting in a net decrease in cash and cash equivalents at period-end - Condensed Consolidated Interim Statement of Cash Flows (For the six months ended June 30, 2025, RMB thousand) | Indicator | 2025 | 2024 | | :--- | :----- | :----- | | Net Cash (Used in)/Generated from Operating Activities | (62,287) | 130,116 | | Net Cash Used in Investing Activities | (3,296) | (928) | | Net Cash Used in Financing Activities | (33,418) | (36,400) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (99,001) | 92,788 | | Cash and Cash Equivalents at Beginning of Period | 446,831 | 277,475 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | (876) | 1,441 | | Cash and Cash Equivalents at End of Period | 346,954 | 371,704 | - Cash flow from operating activities changed from a net inflow of **RMB 130.1 million** in H1 2024 to a net outflow of **RMB 62.3 million** in H1 2025[187](index=187&type=chunk) - Net cash outflow from investing activities was **RMB 3.3 million**, primarily for the purchase of property, plant and equipment, intangible assets, and financial assets[187](index=187&type=chunk) - Net cash outflow from financing activities was **RMB 33.4 million**, including repayment of bank borrowings, lease payments, and dividend payments to shareholders of **RMB 53.5 million**[188](index=188&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=44&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [General Information](index=44&type=section&id=General%20Information) This section provides fundamental information about Zibuyu Group, including its place of incorporation, principal business activities, product sourcing and sales markets, ultimate controlling shareholder, and listing status on the Hong Kong Stock Exchange - Zibuyu Group Limited was incorporated in the Cayman Islands on August 6, 2018[190](index=190&type=chunk) - The Group is primarily engaged in selling apparel, footwear, and other products, mainly sourced from China and sold to customers in the United States, Canada, Mexico, and other countries through third-party e-commerce platforms and proprietary websites[191](index=191&type=chunk) - The ultimate controlling shareholder is Mr. Hua Bingru, and the company's shares have been listed on the Main Board of the Hong Kong Stock Exchange since November 11, 2022[192](index=192&type=chunk) [Basis of Preparation](index=45&type=section&id=Basis%20of%20Preparation) This section states that the condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024 - This condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[198](index=198&type=chunk) - It should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[198](index=198&type=chunk) [Accounting Policies Information](index=45&type=section&id=Accounting%20Policies%20Information) This section confirms that the accounting policies applied are consistent with those in the 2024 annual financial statements, lists new and amended standards first adopted by the Group (e.g., IAS 21 amendments), and notes new standards and interpretations not yet adopted but not expected to have a significant impact - Except as stated below, the accounting policies applied are consistent with those described in the annual financial statements for the year ended December 31, 2024[199](index=199&type=chunk)[201](index=201&type=chunk) - The Group first applied the amendments to IAS 21 "Lack of Exchangeability" for the annual reporting period beginning January 1, 2025, which is not expected to have a significant impact on the current or future periods[203](index=203&type=chunk)[204](index=204&type=chunk)[206](index=206&type=chunk) - Several new accounting standards and interpretations have not yet been adopted but are not expected to have a significant impact on the Group or its foreseeable future transactions in the current or future reporting periods[205](index=205&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [Critical Accounting Estimates and Judgements](index=48&type=section&id=Critical%20Accounting%20Estimates%20and%20Judgements) This section states that the critical judgments and key sources of estimation uncertainty made by management in preparing the condensed consolidated interim financial information are the same as those applied in the consolidated financial statements for the year ended December 31, 2024 - The critical judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied in the consolidated financial statements for the year ended December 31, 2024[211](index=211&type=chunk)[212](index=212&type=chunk) [Financial Risk Management](index=49&type=section&id=Financial%20Risk%20Management) This section outlines the financial risks faced by the Group, including foreign exchange risk, cash flow and fair value interest rate risk, credit risk, and liquidity risk, noting that risk management policies have not changed since December 31, 2024 - The Group's operations expose it to various financial risks: foreign exchange risk, cash flow and fair value interest rate risk, credit risk, and liquidity risk[213](index=213&type=chunk)[216](index=216&type=chunk) - Risk management policies and fair value estimates have not changed since December 31, 2024[214](index=214&type=chunk)[216](index=216&type=chunk)[215](index=215&type=chunk)[217](index=217&type=chunk) [Segment Information](index=50&type=section&id=Segment%20Information) This section states that the Group has only one reportable operating segment, provides revenue breakdowns by geographical location and sales channel, discloses contract liabilities and unsatisfied performance obligations, and notes that no single customer's revenue exceeded 10% of total revenue - The Group has only one reportable operating segment[218](index=218&type=chunk)[219](index=219&type=chunk) - Revenue by Geographical Location (For the six months ended June 30, 2025, RMB thousand) | Geographical Location | 2025 | 2024 | | :------- | :----- | :----- | | North America | 1,926,558 | 1,396,891 | | Asia | 21,684 | 47,435 | | Europe | 6,203 | 9,488 | | Others | 6,880 | 8,318 | | **Total** | **1,961,325** | **1,462,132** | - Revenue by Sales Channel (For the six months ended June 30, 2025, RMB thousand) | Sales Channel | 2025 | 2024 | | :------- | :----- | :----- | | Amazon | 1,815,946 | 1,376,857 | | Temu | 50,439 | 28,132 | | TikTok | 40,037 | 26,467 | | Other Third-Party E-commerce Platforms | 11,918 | 9,378 | | Proprietary Websites | 35,505 | 3,614 | | Others | 7,480 | 17,684 | | **Total** | **1,961,325** | **1,462,132** | - As of June 30, 2025, the amount of unsatisfied performance obligations (customer orders placed but products not yet delivered) expected to be recognized within one year was **RMB 21,521 thousand**[234](index=234&type=chunk) - For the six months ended June 30, 2025, and 2024, no individual customer's revenue exceeded **10%** of the Group's total revenue[235](index=235&type=chunk)[237](index=237&type=chunk) [Other Income](index=55&type=section&id=Other%20Income) This section details the Group's other income, primarily comprising interest income and government grants, indicating an increase in total other income for H1 2025 - Other Income Details (For the six months ended June 30, 2025, RMB thousand) | Item | 2025 | 2024 | | :--- | :----- | :----- | | Interest Income | 5,235 | 4,803 | | Government Grants | 1,141 | 343 | | Others | 320 | 264 | | **Total** | **6,696** | **5,410** | - Government grants primarily involve financial subsidies received from local governments in China, with no unfulfilled conditions[240](index=240&type=chunk) [Other Gains, Net](index=56&type=section&id=Other%20Gains%2C%20Net) This section provides details of the Group's net other gains, primarily consisting of net exchange gains, indicating a decrease in net other gains for H1 2025 compared to the same period last year - Other Gains, Net Details (For the six months ended June 30, 2025, RMB thousand) | Item | 2025 | 2024 | | :--- | :----- | :----- | | Net Exchange Gains | 4,976 | 10,324 | | Net Gain on Disposal of Right-of-Use Assets | 435 | 957 | | Net Loss on Disposal of Property, Plant and Equipment | (210) | (281) | | Others | 109 | (24) | | **Total** | **5,310** | **10,976** | - The decrease in net other gains was primarily due to a reduction in net exchange gains resulting from exchange rate fluctuations[68](index=68&type=chunk) [Expenses by Nature](index=57&type=section&id=Expenses%20by%20Nature) This section details the Group's expenses by nature, including freight and insurance costs, cost of inventories sold, marketing and advertising expenses, e-commerce platform commissions, employee benefit expenses, and other items, indicating an increase in total expenses - Expenses by Nature (For the six months ended June 30, 2025, RMB thousand) | Item | 2025 | 2024 | | :--- | :----- | :----- | | Freight and Insurance Costs | 573,344 | 377,482 | | Cost of Inventories Sold | 373,581 | 272,254 | | Marketing and Advertising Expenses | 348,894 | 210,022 | | E-commerce Platform Commissions | 267,252 | 229,061 | | Employee Benefit Expenses | 121,642 | 102,307 | | Other Platform Fees | 84,425 | 66,391 | | Inventory Provision | 52,596 | 74,252 | | Outsourcing Service Expenses | 8,404 | 5,798 | | Depreciation of Right-of-Use Assets | 8,037 | 9,750 | | Office Expenses | 4,545 | 3,745 | | Legal and Professional Fees | 4,370 | 4,729 | | IT Server Fees | 2,686 | 2,720 | | Depreciation of Property, Plant and Equipment | 2,148 | 2,173 | | Amortization of Intangible Assets | 313 | 988 | | Other Expenses | 10,246 | 19,025 | | **Total** | **1,862,483** | **1,380,697** | - Total expenses related to the research and development of new IT systems amounted to **RMB 13,582 thousand** (H1 2024: RMB 17,652 thousand)[245](index=245&type=chunk)[247](index=247&type=chunk) [Finance Costs](index=58&type=section&id=Finance%20Costs) This section details the Group's finance costs, primarily comprising interest expenses on bank borrowings and lease liabilities, indicating a decrease in finance costs for H1 2025 compared to the same period last year - Finance Costs Details (For the six months ended June 30, 2025, RMB thousand) | Item | 2025 | 2024 | | :--- | :----- | :----- | | Interest Expense on Bank Borrowings | 2,211 | 3,447 | | Interest Expense on Lease Liabilities | 633 | 794 | | Others | — | 127 | | **Total** | **2,844** | **4,368** | - The decrease in finance costs was primarily due to a reduction in interest expense on bank borrowings[77](index=77&type=chunk) [Income Tax Expense](index=59&type=section&id=Income%20Tax%20Expense) This section details the Group's income tax expense, including current and deferred income tax, explains applicable tax rates and preferential tax policies in the Cayman Islands, British Virgin Islands, Hong Kong, and mainland China, and mentions the impact of the OECD Pillar Two legislative template - Income Tax Expense Details (For the six months ended June 30, 2025, RMB thousand) | Item | 2025 | 2024 | | :--- | :----- | :----- | | Current Income Tax | 1,149 | 1,334 | | Deferred Income Tax | 689 | 632 | | **Total** | **1,838** | **1,966** | - Chinese subsidiaries Zhejiang Zibuyu E-commerce Co., Ltd. and Hangzhou Xingzezhi Network Technology Co., Ltd. are recognized as high-tech enterprises, eligible for a reduced corporate income tax rate of **15%**[260](index=260&type=chunk)[262](index=262&type=chunk) - Chinese companies accrued dividend withholding tax of **RMB 689 thousand** (2024: RMB 632 thousand)[265](index=265&type=chunk)[267](index=267&type=chunk) - The OECD Pillar Two legislation was not effective as of June 30, 2025, and the Group applies an exception in recognizing and disclosing related deferred tax assets and liabilities[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[272](index=272&type=chunk) [Dividends](index=62&type=section&id=Dividends) This section reports the final dividend of HKD 0.12 per share (approximately RMB 0.11), totaling approximately RMB 53.9 million, for the year ended December 31, 2024, as recommended by the Board and approved by shareholders, which was paid in May 2025 - The Board recommended a final dividend of **HKD 0.12** per share (equivalent to approximately **RMB 0.11**), totaling approximately **RMB 53.9 million**, for the year ended December 31, 2024[271](index=271&type=chunk)[273](index=273&type=chunk) - This final dividend was paid in May 2025[271](index=271&type=chunk)[273](index=273&type=chunk) [Earnings Per Share](index=63&type=section&id=Earnings%20Per%20Share) This section explains the calculation methods for basic and diluted earnings per share, provides EPS data for H1 2025 and H1 2024, and notes that diluted EPS is the same as basic EPS due to the absence of potential dilutive ordinary shares - Basic Earnings Per Share (For the six months ended June 30, 2025) | Indicator | 2025 | 2024 | | :--- | :----- | :----- | | Profit Attributable to Shareholders of the Company (RMB thousand) | 105,909 | 91,365 | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 486,503 | 494,510 | | Basic Earnings Per Share (RMB) | 0.22 | 0.18 | - Diluted earnings per share presented are the same as basic earnings per share because there are no outstanding potential dilutive ordinary shares[280](index=280&type=chunk)[281](index=281&type=chunk) [Property, Plant and Equipment, Intangible Assets and Right-of-Use Assets](index=65&type=section&id=Property%2C%20Plant%20and%20Equipment%2C%20Intangible%20Assets%20and%20Right-of-Use%20Assets) This section provides the opening and closing net book values of property, plant and equipment, intangible assets, and right-of-use assets, along with additions, disposals, depreciation, and amortization during the period - Changes in Property, Plant and Equipment, Intangible Assets and Right-of-Use Assets (For the six months ended June 30, 2025, RMB thousand) | Item | Property, Plant and Equipment | Intangible Assets | Right-of-Use Assets | Total | | :--- | :----------- | :------- | :------- | :--- | | Opening Net Book Value as of Jan 1, 2025 | 8,631 | 1,135 | 24,518 | 34,284 | | Additions | 1,361 | 613 | 17,099 | 19,073 | | Disposals | (243) | — | (6,586) | (6,829) | | Depreciation and Amortization | (2,148) | (313) | (8,037) | (10,498) | | Closing Net Book Value as of June 30, 2025 | 7,601 | 1,435 | 26,994 | 36,030 | [Inventories](index=66&type=section&id=Inventories) This section details the Group's inventory composition, primarily finished goods, and discloses inventory provisions, indicating an increase in both total inventory and provisions as of June 30, 2025 - Inventory Details (As of June 30, 2025, RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | Finished Goods | 697,648 | 446,578 | | Less: Provision | (98,373) | (72,089) | | **Total** | **599,275** | **374,489** | - For the six months ended June 30, 2025, the cost of inventories recognized as an expense and included in cost of sales was **RMB 373,581 thousand**, with an inventory provision of **RMB 52,596 thousand**[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) [Trade Receivables](index=67&type=section&id=Trade%20Receivables) This section provides an aging analysis of trade receivables, showing an increase in total trade receivables as of June 30, 2025, with the majority being within 3 months - Trade Receivables Details (As of June 30, 2025, RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | Trade Receivables | 221,327 | 182,987 | | Less: Impairment Provision | (1,107) | (915) | | **Total** | **220,220** | **182,072** | - Aging Analysis of Trade Receivables (As of June 30, 2025, RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | Within 3 months | 217,942 | 165,975 | | 3 to 6 months | 2,964 | 12,754 | | 6 to 12 months | 64 | 4,146 | | Over 1 year | 357 | 112 | | **Total** | **221,327** | **182,987** | [Prepayments and Other Receivables](index=68&type=section&id=Prepayments%20and%20Other%20Receivables) This section details the composition of prepayments and other receivables, including prepayments to suppliers and platforms, amounts due from payment platforms, and other items, indicating an increase in the total amount as of June 30, 2025 - Prepayments and Other Receivables Details (As of June 30, 2025, RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | Prepayments to Suppliers and Platforms | 17,660 | 6,344 | | Amounts Due from Payment Platforms | 15,210 | 18,414 | | Share Repurchase Deposits | 5,274 | 4,476 | | Deductible Input VAT | 1,279 | 614 | | Other Deposits | 997 | 892 | | Export Tax Refund Receivables | 218 | 107 | | Recoverable Income Tax | — | 34 | | Others | 1,792 | 1,047 | | **Total** | **42,430** | **31,928** | [Cash and Cash Equivalents and Restricted Cash](index=69&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Restricted%20Cash) This section provides details of cash and cash equivalents and restricted cash, indicating a decrease in total cash and cash equivalents as of June 30, 2025, and a change in the composition of restricted cash - Cash and Cash Equivalents and Restricted Cash Details (As of June 30, 2025, RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | Bank Balances | 347,472 | 448,163 | | Less: Restricted Cash | (518) | (1,332) | | **Cash and Cash Equivalents** | **346,954** | **446,831** | - Restricted Cash Details (As of June 30, 2025, RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | For Salary Payments Only | — | 1,000 | | Others | 518 | 332 | | **Total** | **518** | **1,332** | [Share Capital and Share Premium](index=70&type=section&id=Share%20Capital%20and%20Share%20Premium) This section lists the number of authorized and issued ordinary shares of the Group, as well as changes in share capital and share premium, primarily reflecting the impact of dividend distribution on share premium - As of June 30, 2025, the Group's total issued share capital comprised **500,000,000** ordinary shares with a par value of **USD 0.00005** each[297](index=297&type=chunk)[298](index=298&type=chunk) - Share premium decreased by **RMB 53,856 thousand** due to dividend distribution[297](index=297&type=chunk) [Shares Held for Employee Share Scheme](index=71&type=section&id=Shares%20Held%20for%20Employee%20Share%20Scheme) This section details the Group's two share award schemes (Existing Shares and New Shares) and reports on share repurchases through the trustee in H1 2025, noting that no shares were granted - The Group has adopted the Share Award Scheme (Existing Shares) and the Share Award Scheme (New Shares) to reward eligible individuals for their contributions and attract talent[299](index=299&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk) - For the six months ended June 30, 2025, the company repurchased **1,709,500** shares through its trustee for a consideration of approximately **RMB 7,964 thousand**[303](index=303&type=chunk)[304](index=304&type=chunk) - For the six months ended June 30, 2025, no shares were granted[303](index=303&type=chunk)[305](index=305&type=chunk) [Trade and Other Payables](index=73&type=section&id=Trade%20and%20Other%20Payables) This section provides detailed breakdowns and an aging analysis of trade and other payables, indicating a significant increase in trade payables as of June 30, 2025, with most being within 3 months - Trade and Other Payables Details (As of June 30, 2025, RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | Trade Payables | 181,031 | 116,638 | | Accrued Liabilities | 94,259 | 71,167 | | Amounts Payable to Third-Party E-commerce Platforms | 72,186 | 63,806 | | Accrued Wages and Social Security Contributions | 54,590 | 56,188 | | Other Taxes Payable | 1,617 | 1,518 | | Interest Payable | 333 | 94 | | Other Payables | 5,299 | 8,711 | | **Total** | **409,315** | **318,122** | - Aging Analysis of Trade Payables (As of June 30, 2025, RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | Within 3 months | 165,171 | 114,140 | | 3 months to 1 year | 15,082 | 2,495 | | 1 to 2 years | 778 | 3 | | **Total** | **181,031** | **116,638** | [Borrowings](index=75&type=section&id=Borrowings) This section lists the Group's current unsecured bank borrowings, indicating an increase in total borrowings as of June 30, 2025 - Borrowings Details (As of June 30, 2025, RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :----------- | :------------- | | Bank Borrowings — Unsecured | 168,700 | 130,000 | [Commitments](index=75&type=section&id=Commitments) This section confirms that the Group had no significant capital commitments as of June 30, 2025, and December 31, 2024 - As of June 30, 2025, and December 31, 2024, the Group had no significant capital commitments[311](index=311&type=chunk) [Related Party Transactions](index=76&type=section&id=Related%20Party%20Transactions) This section discloses the Group's transactions and balances with related parties, primarily Hangzhou Shuzhi Technology Co., Ltd., an associate of Mr. Hua Bingru, and key management compensation - Hangzhou Shuzhi Technology Co., Ltd. is an associate of Mr. Hua Bingru[314](index=314&type=chunk) - Transactions with Related Parties (For the six months ended June 30, 2025, RMB thousand) | Transaction Type | Related Party | 2025 | 2024 | | :------- | :----- | :----- | :----- | | Purchase of Smart Advertising Subscription Services | Hangzhou Shuzhi | 166 | — | | Purchase of IT Services | Hangzhou Shuzhi | — | 6,000 | - Balances with Related Parties (As of June 30, 2025, RMB thousand) | Item | Related Party | June 30, 2025 | December 31, 2024 | | :--- | :----- | :----------- | :------------- | | Prepayments and Other Receivables | Hangzhou Shuzhi | 1,330 | — | | Trade and Other Payables | Hangzhou Shuzhi | — | 1,000 | - Key Management Compensation (For the six months ended June 30, 2025, RMB thousand) | Item | 2025 | 2024 | | :--- | :----- | :----- | | Wages, Salaries and Bonuses | 4,719 | 3,677 | | Contributions to Pension Schemes, Housing Provident Fund, Medical Insurance and Other Social Welfare | 614 | 360 | | **Total** | **5,333** | **4,037** | [Subsequent Events](index=79&type=section&id=Subsequent%20Events) This section confirms that, except as disclosed elsewhere in this report, there have been no material subsequent events from June 30, 2025, up to the date of this report - Except as disclosed elsewhere in this report, there have been no material subsequent events from June 30, 2025, up to the date of this report[326](index=326&type=chunk) [Definitions](index=80&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the report, ensuring readers have a clear and consistent understanding of company-specific terminology and regulatory vocabulary - This section defines key terms used in the report, such as "Alitti," "Also Jun," "Audit Committee," "Board," "BVI," "Chief Executive Officer," "China," "Company," "Controlling Shareholder," "Corporate Governance Code," "Directors," "Gfxtmyun," "Global Offering," "Group," "HK$," "Hone Ru," "Hong Kong," "Hong Kong Share Registrar," "Hyufeng," "Independent Third Party," "Listing," "Listing Rules," "Main Board," "Model Code," "Mr. Hua," "Nomination Committee," "Prospectus," "Remuneration Committee," "Reporting Period," "RMB," "SFO," "Share Award Scheme (Existing Shares)," "Share Award Scheme (New Shares)," "Shares," "Shareholder(s)," "Stock Exchange," "Subsidiary(ies)," "Substantial Shareholder(s)," "TMY ONE," "TMY THREE," "US," "US$," "Wiloru Holdings," "Xringirl," "Zhejiang Zibuyu," and "%"[327](index=327&type=chunk)[328](index=328&type=chunk)[330](index=330&type=chunk)[331](index=331&type=chunk)[333](index=333&type=chunk)[334](index=334&type=chunk)

截至 2025 年 6 月 30 日止 6 個月未經審計之中期業績公告 截至2025年6月30日止6個月，本集團實現營業收入人民幣1,677.11億元，同比增長11.50%（上年同 期：人民幣1,504.17億元）。 截至2025年6月30日止6個月，本集團實現利潤總額人民幣344.97億元，同比增長59.80%（上年同期： 人民幣215.88億元）。 截至2025年6月30日止6個月，本集團歸屬於上市公司股東的淨利潤為人民幣232.92億元，同比增長 54.41%（上年同期：人民幣150.84億元）。 於2025年6月30日，本集團總資產為人民幣4,397.43億元，較年初增長10.88%（年初：人民幣3,966.11 億元）。 於2025年6月30日，本集團歸屬於上市公司股東的淨資產為人民幣1,420.74億元，較年初增長1.64% （年初：人民幣1,397.86億元）。 董事會審議通過的2025年半年度利潤分配方案為：以實施權益分派股權登記日登記的總股本為基 數，向全體股東每10股派發現金紅利人民幣2.2元（含稅）。 紫金礦業集團股份有限公司（「本公司」╱「公司」）董事會（「董事會」）欣然宣佈本公司及其 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 | 財務表現摘要 | | | | --- | --- | --- | | 收入 | 6,936 | 百萬港元 | | 本公司擁有人應佔虧損 | 3,145 | 百萬港元 | | 每股基本虧損 | | 3.96 港元 | | 本公司擁有人應佔每股權益 | | 2.11 港元 | 1 業績 惠記集團有限公司（「本公司」）之董事會（「董事會」）宣佈本公司及其附屬公司 （「本集團」）截至二零二五年六月三十日止六個月之未經審核業績如下： WAI KEE HOLDINGS LIMITED 惠記集團有限公司 （於百慕達註冊成立之有限公司） （股份代號: 610） 截至二零二五年六月三十日止六個月 中期業績公佈 2 簡明綜合損益及其他全面收益表 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 | | ...

[Company Information and Financial Highlights](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Hubei Xiangjiang Electrical Appliance Co., Ltd. (Stock Code: 2619) reported significant declines in revenue, gross profit, and net profit for the six months ended June 30, 2025 Key Financial Data for H1 2025 (RMB thousand) | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 542,800 | 614,400 | | Gross Profit | 107,600 | 137,400 | | Net Profit | 25,300 | 60,500 | - For the six months ended June 30, 2025, revenue decreased by **11.7%** year-on-year, gross profit decreased by **21.7%** year-on-year, and net profit significantly decreased by **58.2%** year-on-year[4](index=4&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company reported a profit of **RMB 25,313 thousand**, a significant decrease from the prior year, with basic and diluted earnings per share at **RMB 0.12** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 542,816 | 614,423 | | Cost of Sales | (435,249) | (477,013) | | Gross Profit | 107,567 | 137,410 | | Other Income | 12,747 | 8,762 | | Selling Expenses | (12,355) | (14,900) | | Administrative Expenses | (55,377) | (45,819) | | Research and Development Expenses | (14,740) | (16,455) | | Finance Costs | (8,083) | (5,561) | | Profit Before Tax | 30,750 | 70,927 | | Income Tax Expense | (5,437) | (10,388) | | Profit for the Period | 25,313 | 60,539 | | Earnings Per Share (RMB) | 0.12 | 0.30 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets less current liabilities increased to **RMB 1,247,314 thousand**, with net assets rising to **RMB 1,097,054 thousand**, driven by share issuance and profit accumulation Condensed Consolidated Statement of Financial Position (RMB thousand) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 688,378 | 734,637 | | Current Assets | 1,018,601 | 1,161,331 | | Current Liabilities | 629,994 | 648,654 | | Net Current Assets | 388,607 | 512,677 | | Total Assets Less Current Liabilities | 1,076,985 | 1,247,314 | | Non-current Liabilities | 150,260 | 150,774 | | Net Assets | 1,097,054 | 926,211 | | Share Capital | 272,880 | 204,660 | | Reserves | 824,174 | 721,551 | | Total Equity | 1,097,054 | 926,211 | [Notes to the Condensed Consolidated Financial Statements](index=5&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%E6%B3%A8) This section details the basis of preparation, accounting policies, and specific components of the interim financial statements, including revenue by product, income tax, dividends, EPS, trade receivables/payables, borrowings, and share capital changes [General Information and Basis of Preparation](index=5&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Hubei Xiangjiang Electrical Appliance Co., Ltd., a China-registered company, listed on the HKEX on June 25, 2025, focuses on home appliance R&D, manufacturing, and sales, with interim financials prepared under IAS 34 and HKEX Listing Rules - The company primarily engages in the research, design, manufacturing, and sale of electrical and non-electrical home furnishings[8](index=8&type=chunk) - The company's shares were listed on the Main Board of the Hong Kong Stock Exchange on **June 25, 2025**[8](index=8&type=chunk) - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard **34** and the HKEX Listing Rules, with the first-time application of IFRS amendments having no significant impact on financial position[9](index=9&type=chunk)[10](index=10&type=chunk) [Revenue Segment Information](index=6&type=section&id=5.%20%E6%94%B6%E7%9B%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Revenue is segmented into electrical and non-electrical home furnishings, with both categories experiencing declines for the six months ended June 30, 2025, totaling **RMB 438,537 thousand** and **RMB 104,279 thousand** respectively Revenue by Product Category (RMB thousand) | Product Category | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Electrical Home Appliances | 438,537 | 467,538 | | - Heating Appliances | 275,694 | 296,238 | | - Motorized Appliances | 111,458 | 127,415 | | - Electronic Appliances | 51,385 | 43,885 | | Non-electrical Home Furnishings | 104,279 | 146,885 | | - Garden Hoses | 97,628 | 135,033 | | - Others | 6,651 | 11,852 | | **Total Revenue** | **542,816** | **614,423** | - The company's primary operating decision-makers allocate resources and assess performance based on revenue analysis by product category, with no other separate financial information provided[13](index=13&type=chunk) [Income Tax Expense](index=7&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the six months ended June 30, 2025, decreased to **RMB 5,437 thousand**, primarily comprising China, Hong Kong, and US taxes, with Chinese subsidiaries benefiting from a **15%** high-tech enterprise tax rate Income Tax Expense Details (RMB thousand) | Tax Category | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 6,088 | 9,582 | | - China Corporate Income Tax | 5,615 | 9,319 | | - Hong Kong | 473 | 97 | | - United States | – | 166 | | Over-provision in Prior Years | (1,944) | – | | Deferred Tax | 1,293 | 806 | | **Total Income Tax Expense** | **5,437** | **10,388** | - Chinese subsidiaries are recognized as high-tech enterprises, enjoying a preferential corporate income tax rate of **15%**[16](index=16&type=chunk) - Hong Kong profits tax operates under a two-tiered tax rate system, with eligible entities taxed at **8.25%** on the first **HKD 2 million** of profits and **16.5%** on the excess[17](index=17&type=chunk) - US subsidiaries pay corporate income tax at a federal rate of **21%** and a maximum state rate of **8.84%**[18](index=18&type=chunk) [Dividends and Earnings Per Share](index=8&type=section&id=7.%20%E8%82%A1%E6%81%AF) No dividends were paid or proposed during the reporting period, and basic earnings per share significantly decreased to **RMB 0.12** for the six months ended June 30, 2025 - No dividends were paid, declared, or proposed by the company during the reporting period or prior reporting periods[19](index=19&type=chunk)[69](index=69&type=chunk) Earnings Per Share Calculation (RMB thousand) | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company for Basic EPS Calculation | 25,313 | 60,539 | | Weighted Average Number of Ordinary Shares (thousand shares) for Basic and Diluted EPS Calculation | 206,921 | 204,660 | | **Basic and Diluted Earnings Per Share (RMB)** | **0.12** | **0.30** | [Trade and Other Receivables and Payables](index=8&type=section&id=9.%20%E8%B3%80%20%E6%98%93%20%E6%87%89%20%E6%94%B6%20%E6%AC%BE%20%E9%A0%85%EF%BC%8F%E6%8C%89%20%E5%85%AC%20%E5%85%81%20%E5%80%BC%20%E8%A8%88%20%E5%85%A5%20%E5%85%B6%20%E4%BB%96%20%E5%85%A8%20%E9%9D%A2%20%E6%94%B6%20%E7%9B%8A%20%E7%9A%84%20%E8%B3%80%20%E6%98%93%20%E6%87%89%20%E6%94%B6%20%E6%AC%BE%20%E9%A0%85) As of June 30, 2025, net trade receivables decreased to **RMB 181,647 thousand**, while trade receivables at fair value through OCI increased to **RMB 9,218 thousand**, and total trade payables and bills payable were **RMB 274,301 thousand** Trade Receivables (RMB thousand) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 186,913 | 241,286 | | Less: Provision for Expected Credit Losses | (5,266) | (5,646) | | **Net Amount** | **181,647** | **235,640** | Trade Receivables Aging Analysis (RMB thousand) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 182,845 | 236,440 | | 1 to 2 years | 819 | 776 | | 2 to 3 years | 68 | 840 | | Over 3 years | 3,181 | 3,230 | | **Total** | **186,913** | **241,286** | - Trade receivables at fair value through other comprehensive income increased to **RMB 9,218 thousand**, primarily representing trade receivables held under a "hold to collect and sell" business model, achieved through collecting contractual cash flows and non-recourse factoring[23](index=23&type=chunk) Trade Payables and Bills Payable (RMB thousand) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 249,478 | 264,457 | | Bills Payable | 24,823 | 28,017 | | **Total** | **274,301** | **292,474** | - The credit period for trade payables is typically within **120** days, and all bills payable are due within one year[25](index=25&type=chunk) [Borrowings and Share Capital](index=10&type=section&id=11.%20%E5%80%9F%20%E6%AC%BE) For the six months ended June 30, 2025, the company secured **RMB 382,273 thousand** in new bank loans and repaid **RMB 315,335 thousand**, with share capital increasing due to the issuance of **68,220,000 H-shares** - For the six months ended June 30, 2025, the company obtained new bank loans of **RMB 382,273 thousand**, an increase from **RMB 262,459 thousand** in the prior year[26](index=26&type=chunk) - New loans bear fixed market interest rates ranging from **2.55%** to **5.00%** and are repayable in installments over a period of six months to three years[26](index=26&type=chunk) - The company's share capital increased due to the listing and issuance of **68,220,000 H-shares** on **June 25, 2025**, bringing the total share capital to **272,879,509** shares, with gross proceeds of approximately **RMB 178,092 thousand**[27](index=27&type=chunk)[28](index=28&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section reviews H1 2025 operating performance, analyzes revenue, gross profit, and net profit declines, outlines future strategies including overseas capacity, automation, R&D, and discusses financial position, liquidity, market risks, and employee matters [Business Overview and Review](index=11&type=section&id=%E6%A6%82%20%E8%A7%88) As a Chinese home furnishings manufacturer, the company experienced declines in sales, revenue, and gross margin in H1 2025 due to US trade policy uncertainties, leading to a **58.2%** drop in net profit - The company is a Chinese home furnishings manufacturer, with products categorized into heating, motorized, electronic appliances, and non-electrical home furnishings (e.g., garden hoses, cookware)[29](index=29&type=chunk) - In H1 2025, sales decreased by **15.4%** to **9.0 million units** and revenue decreased by **11.7%** to **RMB 542.8 million** due to uncertainties from US trade policies[30](index=30&type=chunk) - Gross margin declined from **22.4%** to **19.8%**, gross profit decreased by **21.7%** to **RMB 107.6 million**, and net profit fell by **58.2%**[31](index=31&type=chunk) - Administrative expenses increased by **20.9%** to **RMB 55.4 million** due to the gradual operation of production facilities in China and Indonesia, while exchange gains decreased by **49.2%** to **RMB 4.5 million**[31](index=31&type=chunk) [Business Outlook and Strategy](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%89%8D%E6%99%AF) Facing a complex operating environment, the company will pursue sustainable growth by expanding overseas production, enhancing automation and digitalization, and increasing R&D investment to build core competitiveness - The company will advance overseas capacity expansion, having established its first overseas plant in Indonesia and investing in a second production base in Thailand, aiming to build a global production layout, mitigate trade risks, and reduce tariff impacts[32](index=32&type=chunk) - The company launched a smart manufacturing initiative, establishing the Xiangjiang Smart Factory in Huizhou, China, procuring advanced automation equipment, and planning to implement a computerized manufacturing execution system to enhance automation and digitalization[33](index=33&type=chunk) - The company will increase R&D investment, planning to build a new R&D center in Qichun County, Hubei Province, and collaborate with universities and research institutions to explore new technologies, processes, and materials in home furnishings manufacturing, enhancing product technological content and added value[34](index=34&type=chunk) [Financial Performance Analysis](index=13&type=section&id=%E6%94%B6%20%E7%9B%8A) This section analyzes financial metric changes, attributing revenue and gross profit declines to US tariffs and reduced sales, while administrative expenses rose due to new facility staffing, and finance costs increased as interest capitalization ceased [Revenue and Gross Profit](index=13&type=section&id=%E6%94%B6%20%E7%9B%8A) For the six months ended June 30, 2025, revenue decreased by **11.7%** to **RMB 542,800 thousand** due to US tariffs, and gross profit fell **21.7%** to **RMB 107,600 thousand**, with gross margin declining to **19.8%** - Revenue decreased by **11.7%** to **RMB 542,800 thousand** year-on-year, primarily attributed to a decline in sales volume caused by uncertainties arising from US tariff policies[35](index=35&type=chunk) - Gross profit decreased by **21.7%** to **RMB 107,600 thousand** year-on-year, with gross margin declining by **2.6%** to **19.8%** from **22.4%**, mainly due to lower sales volume and a decrease in overall gross margin[36](index=36&type=chunk) [Cost of Sales and Other Income/Gains](index=13&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased by **8.8%** to **RMB 435,200 thousand** due to lower sales, while other income rose to **RMB 12,700 thousand** from increased government grants, and other net gains/losses declined to **RMB 2,500 thousand** due to exchange rate fluctuations - Cost of sales decreased by **8.8%** to **RMB 435,200 thousand** year-on-year, primarily due to a decrease in sales volume caused by ongoing uncertainties from US trade policies[37](index=37&type=chunk) - Other income increased to **RMB 12,700 thousand** year-on-year, mainly due to government grants increasing by **190.5%** from **RMB 1,400 thousand** to **RMB 4,100 thousand**[38](index=38&type=chunk) - Other net gains and losses decreased to **RMB 2,500 thousand**, primarily attributable to a reduction in exchange gains/losses due to exchange rate fluctuations[39](index=39&type=chunk) [Operating Expenses](index=13&type=section&id=%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Selling expenses decreased by **17.1%** to **RMB 12,400 thousand** due to reduced sales, administrative expenses increased by **20.9%** to **RMB 55,400 thousand** from increased staffing, and R&D expenses fell **10.4%** to **RMB 14,700 thousand** due to fewer projects - Selling expenses decreased by **17.1%** to **RMB 12,400 thousand** year-on-year, primarily due to a reduction in sales personnel salaries resulting from decreased sales volume[40](index=40&type=chunk) - Administrative expenses increased by **20.9%** to **RMB 55,400 thousand** year-on-year, mainly due to an increase in management personnel at the Group's production facilities in China and Indonesia[41](index=41&type=chunk) - Research and development expenses decreased by **10.4%** to **RMB 14,700 thousand** year-on-year, primarily due to a reduction in the number of R&D projects during the reporting period[42](index=42&type=chunk) - Other expenses were zero, compared to **RMB 1,800 thousand** in the prior year, mainly due to reduced donations and the termination of the previous A-share listing plan[43](index=43&type=chunk) [Finance Costs and Income Tax](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs increased to **RMB 8,100 thousand** as interest capitalization ceased, while income tax expense decreased to **RMB 5,400 thousand** due to lower pre-tax profit, though the effective tax rate rose from **14.6%** to **17.7%** - Finance costs increased to **RMB 8,100 thousand** year-on-year, primarily due to the cessation of interest capitalization upon completion of the Xiangjiang Smart Factory construction[44](index=44&type=chunk) - Income tax expense decreased to **RMB 5,400 thousand** year-on-year, mainly due to a reduction in profit before tax during the reporting period compared to the same period in 2024, with the effective tax rate increasing from **14.6%** to **17.7%**[45](index=45&type=chunk) [Net Profit](index=14&type=section&id=%E7%B4%94%20%E5%88%A9) For the six months ended June 30, 2025, the company reported a net profit of **RMB 25,300 thousand**, a significant decrease from **RMB 60,500 thousand** in the prior year - For the six months ended June 30, 2025, the company recorded a net profit of **RMB 25,300 thousand**, compared to **RMB 60,500 thousand** in the prior year[46](index=46&type=chunk) [Financial Position and Liquidity](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) As of June 30, 2025, shareholders' equity increased to **RMB 1,097,100 thousand**, driven by share issuance and retained earnings, with cash and bank balances totaling **RMB 657,100 thousand**, and the gearing ratio improving from **45.7%** to **42.1%** - Shareholders' equity increased from **RMB 926,200 thousand** as of December 31, 2024, to **RMB 1,097,100 thousand** as of June 30, 2025, primarily due to the issuance of share capital from the listing and an increase in reserves from profit recorded during the reporting period[47](index=47&type=chunk) - Bank balances and cash, pledged and restricted bank deposits totaled **RMB 657,100 thousand**, mainly due to proceeds from the listing and an increase in bank borrowings[48](index=48&type=chunk) - The gearing ratio (total liabilities divided by total assets) decreased from **45.7%** as of December 31, 2024, to **42.1%** as of June 30, 2025[50](index=50&type=chunk) - The company adopts a prudent financial management strategy, mitigating credit risk through continuous credit assessment and evaluation of debtors' financial positions, while closely monitoring liquidity[51](index=51&type=chunk) [Market Risks](index=15&type=section&id=%E5%B8%82%E5%A0%B4%E9%A2%A8%E9%9A%AA) The company faces interest rate, industry policy, and foreign exchange risks, managing interest rate exposure through fixed/floating instruments without swaps, monitoring policy changes, and reviewing FX risk for potential hedging with derivatives - The company is exposed to interest rate fluctuations, changes in industry policies, and foreign exchange risks[52](index=52&type=chunk) - Interest rate risk is primarily managed through fixed or floating rate cash, bank deposits, and borrowings, with no interest rate swaps used for hedging during the reporting period[53](index=53&type=chunk)[54](index=54&type=chunk) - Changes in laws and regulations within the global home furnishings, small appliances, and garden hose industries could significantly impact the company's production and operations[55](index=55&type=chunk) - The company's revenue is denominated in USD and RMB, and proceeds from the initial public offering are denominated in HKD, creating foreign exchange risk; the company will regularly review foreign exchange risk and may use derivative financial instruments for hedging when necessary[56](index=56&type=chunk) [Employee Information](index=16&type=section&id=%E5%83%B1%E5%93%A1%E8%B3%87%E6%96%99) As of June 30, 2025, the company employed **2,380** staff with total employee costs of approximately **RMB 103.3 million**, a decrease from the prior year, emphasizing competitive compensation, training, and social security participation - As of June 30, 2025, the company had **2,380** employees; total employee costs were approximately **RMB 103.3 million**, a decrease from **RMB 111.1 million** in the prior year[58](index=58&type=chunk) - The company prioritizes employee recruitment, training, and retention, offering competitive remuneration packages (including basic salary, bonuses, and medical insurance) and on-the-job training, while participating in various social security schemes in China[59](index=59&type=chunk) [Use of Proceeds from Global Offering](index=17&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The company's global offering on the HKEX on June 25, 2025, yielded net proceeds of approximately **HKD 155.6 million**, which remained unutilized as of June 30, 2025, and will be used as disclosed in the prospectus - The company was listed on the Stock Exchange on **June 25, 2025**, with net proceeds from the global offering amounting to approximately **HKD 155,600,000**[60](index=60&type=chunk) - As of **June 30, 2025**, the net proceeds remained unutilized and will be used according to the purposes and timetable disclosed in the prospectus, with no changes currently anticipated[60](index=60&type=chunk) [Significant Investments and Acquisitions](index=17&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the company held no significant equity investments, had no major investment or capital asset plans, and undertook no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - As of **June 30, 2025**, the company did not hold any significant equity investments in other companies, nor did it have any major investment or capital asset plans[61](index=61&type=chunk)[62](index=62&type=chunk) - During the reporting period, the company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[63](index=63&type=chunk) [Other Information](index=17&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers the company's continuing disclosure obligations under the Listing Rules, compliance with the Model Code for Securities Transactions, corporate governance practices (including the combined Chairman and CEO roles), interim dividend policy, post-reporting period events, and the Audit Committee's review of interim results and announcement publication [Continuing Disclosure and Securities Trading](index=17&type=section&id=%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E9%A0%85%E4%B8%8B%E4%B9%8B%E6%8C%81%E7%BA%8C%E6%8A%AB%E9%9C%B2%E8%B2%AC%E4%BB%BB) Beyond this announcement, the company has no other continuing disclosure obligations under the Listing Rules, and neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities since listing, holding no treasury shares as of June 30, 2025 - Except as disclosed in this announcement, the company has no other continuing disclosure obligations under Rules **13.20**, **13.21**, and **13.22** of the Listing Rules[64](index=64&type=chunk) - From the listing date to the announcement date, neither the company nor any of its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held as of **June 30, 2025**[65](index=65&type=chunk) [Corporate Governance](index=18&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted and complied with the Model Code for Securities Transactions by Directors and the Corporate Governance Code, with the Chairman and CEO roles combined by Mr. Pan Yun, which the Board deems in the Group's best interest, balanced by three independent non-executive directors - The company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules and confirms that all Directors and Supervisors have fully complied with it from the listing date to **June 30, 2025**[66](index=66&type=chunk) - The company has adopted the Corporate Governance Code and complied with all applicable code provisions from the listing date to **June 30, 2025**, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Pan Yun[67](index=67&type=chunk)[68](index=68&type=chunk) - The Board believes that Mr. Pan Yun's combined role as Chairman and Chief Executive Officer is in the best interest of the Group, and the three independent non-executive directors ensure a balance of power and authority[68](index=68&type=chunk) [Events After Reporting Period and Review](index=18&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant post-reporting period events affecting business or financial performance occurred, and the Audit Committee reviewed and approved the unaudited interim financial information for H1 2025, confirming compliance with accounting standards and Listing Rules - No significant events related to the business or financial performance of the company occurred from the end of the reporting period to the date of this announcement[70](index=70&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and the unaudited interim financial information, deeming its preparation to be in compliance with applicable accounting standards, Listing Rules, and other relevant legal requirements[71](index=71&type=chunk)[72](index=72&type=chunk) - This results announcement has been published on the HKEX website www.hkexnews.hk and the company's website www.xjgroup.com, and the interim report will be published in due course[73](index=73&type=chunk)

[Performance Highlights](index=1&type=section&id=%E4%B8%9A%E7%BB%A9%E6%91%98%E8%A6%81) The company reported a slight decrease in revenue and a widened net loss for the first half of 2025, with the Board resolving not to declare an interim dividend | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 993.9 | 997.2 | -0.3% | | Net loss attributable to owners of the Company | (24.5) | (15.3) | +60.0% | - The Board has resolved not to declare any interim dividend for the period[3](index=3&type=chunk) [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's financial performance and position for the interim period, detailing comprehensive income, assets, liabilities, and equity [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company experienced a slight decrease in revenue, an increase in cost of sales, leading to a significant reduction in gross profit, while increased finance costs resulted in a wider loss for the period year-on-year | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 993,903 | 997,243 | | Cost of sales | (862,141) | (847,649) | | Gross profit | 131,762 | 149,594 | | Loss before income tax | (30,461) | (17,289) | | Loss for the period | (24,458) | (15,292) | | Basic loss per share | (RMB 0.08) | (RMB 0.05) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, both non-current and current assets decreased, with notable declines in inventories and trade receivables, while current liabilities also decreased, but net current assets turned into net current liabilities, leading to an overall decrease in net assets | Metric | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 856,161 | 894,863 | | Current assets | 831,832 | 957,350 | | Current liabilities | 845,342 | 910,007 | | Net current (liabilities) / assets | (13,510) | 47,343 | | Net assets | 480,060 | 526,063 | - Inventories decreased from **RMB 172,810 thousand** as of December 31, 2024, to **RMB 89,891 thousand** as of June 30, 2025[5](index=5&type=chunk) - Trade and other receivables decreased from **RMB 673,888 thousand** as of December 31, 2024, to **RMB 610,045 thousand** as of June 30, 2025[5](index=5&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=4&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section provides detailed notes to the condensed consolidated interim financial statements, covering general information, accounting policies, estimates, revenue, and financial positions [General Information](index=4&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) The company was incorporated in the Cayman Islands in 2014, primarily engaged in the manufacturing and sale of packaging materials, and operates as an investment holding company - The Company was incorporated as an exempted company under the laws of the Cayman Islands on **July 31, 2014**[6](index=6&type=chunk) - The Company is an investment holding company, and the Group is principally engaged in the manufacturing and sale of packaging materials[7](index=7&type=chunk) [Basis of Preparation](index=4&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86) The condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Stock Exchange, adopting the same accounting policies as the 2024 annual financial statements, with no significant impact from new standards - The financial statements are prepared in accordance with **International Accounting Standard 34** and the applicable disclosure requirements of the Listing Rules of the Stock Exchange[8](index=8&type=chunk) - The financial statements adopt the same accounting policies as the **2024 annual financial statements**, and the application of new or revised International Financial Reporting Standards has no significant impact on the Group's condensed consolidated interim financial statements[8](index=8&type=chunk) - The condensed consolidated interim financial statements are unaudited but have been reviewed by **BDO Limited** in accordance with **Hong Kong Standard on Review Engagements 2410**[9](index=9&type=chunk) [Use of Judgements and Estimates](index=4&type=section&id=%E4%BD%BF%E7%94%A8%E5%88%A4%E6%96%AD%E5%92%8C%E4%BC%B0%E8%AE%A1) The preparation of interim financial statements involves management's judgments, estimates, and assumptions, with uncertainties primarily consistent with those applied in the 2024 annual financial statements - The preparation of financial statements requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[10](index=10&type=chunk) - The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty are consistent with those applied in the **2024 annual financial statements**[10](index=10&type=chunk) [Revenue and Segment Reporting](index=5&type=section&id=%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5%E5%92%8C%E5%88%86%E9%83%A8%E5%91%88%E6%8A%A5) The Group's revenue primarily derives from the sale of corrugated packaging products and corrugated paperboards, classified by end-product industry, with all revenue recognized at a point in time [Revenue Breakdown](index=5&type=section&id=%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5%E6%98%8E%E7%BB%86) This subsection provides a detailed breakdown of revenue by product type and industry for the interim period | Product Type | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Corrugated packaging products | 905,823 | 901,710 | | Corrugated paperboards | 88,080 | 95,533 | | **Total** | **993,903** | **997,243** | | Revenue by Industry | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Food and beverages | 283,882 | 266,756 | | Paper and packaging | 125,394 | 139,385 | | Non-food and beverage consumables | 176,962 | 151,009 | | Home furnishings | 42,831 | 65,529 | | Medical products | 59,899 | 59,974 | | Supply chain solutions | 19,339 | 27,236 | | E-commerce | 11,228 | 14,398 | | Home appliances | 24,736 | 22,783 | | Chemical products | 40,470 | 43,880 | | Machinery manufacturing | 40,620 | 40,617 | | Computer and electronic product manufacturing | 28,846 | 33,314 | | Textiles | 29,032 | 29,983 | | Others | 110,664 | 102,379 | | **Total** | **993,903** | **997,243** | [Segment Reporting](index=6&type=section&id=%E5%88%86%E9%83%A8%E5%91%88%E6%8A%A5) This subsection outlines the Group's operating segment and geographical segment reporting - The Group has identified one operating segment, namely the manufacturing and sale of packaging materials, as resources are integrated and the chief operating decision-maker focuses on the Group's overall operating performance[16](index=16&type=chunk) - Over **90%** of revenue and operating profit are generated from the manufacturing and sale of packaging materials in China, and over **90%** of identifiable assets and liabilities are located in China, thus no geographical segment information is presented[17](index=17&type=chunk) - During the current and prior periods, sales to a single customer did not account for **10% or more** of the Group's revenue[18](index=18&type=chunk) - Revenue refers to the net invoiced value of goods sold by the Group during the period (net of value-added tax)[11](index=11&type=chunk) - The Group has applied the practical expedient under **IFRS 15** and has not disclosed the transaction price allocated to unsatisfied performance obligations under contracts with an original expected duration of one year or less[14](index=14&type=chunk) [Loss Before Income Tax](index=6&type=section&id=%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%8E%E5%89%8D%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, loss before income tax increased to RMB 30.461 million from RMB 17.289 million in the prior period, primarily due to costs of inventories sold, depreciation, freight charges, and employee benefit expenses | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 862,141 | 847,649 | | Depreciation of property, plant and equipment | 59,926 | 52,467 | | Freight charges | 43,104 | 41,256 | | Employee benefit expenses | 110,991 | 115,492 | | Retirement benefit costs | 15,547 | 15,537 | | Net exchange (gain) / loss | (1,662) | 1,120 | - Cost of inventories sold includes raw material costs, component costs, outsourced production costs, employee benefit expenses, and depreciation of property, plant and equipment[21](index=21&type=chunk) [Income Tax Credit](index=7&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E6%8A%B5%E5%85%8D) The income tax credit for the period was RMB 6.003 million, mainly from the origination and reversal of deferred tax, with PRC Enterprise Income Tax accrued at a statutory rate of 25% and no assessable profits in Hong Kong | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | 1,767 | 3,872 | | Deferred tax - origination and reversal of temporary differences | (7,770) | (5,869) | | **Income Tax Credit** | **(6,003)** | **(1,997)** | - PRC Enterprise Income Tax is provided at a statutory rate of **25%**, with no assessable profits in Hong Kong[20](index=20&type=chunk) - Dividends distributed to foreign investors in China are generally subject to a **10%** withholding tax, which can be reduced to **5%** under specific conditions, and withholding tax on direct reinvestment may be deferred[21](index=21&type=chunk)[22](index=22&type=chunk) [Loss Per Share](index=8&type=section&id=%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, basic loss per share increased to RMB 0.08 from RMB 0.05 in the prior period, primarily due to the expanded loss for the period | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Loss for the period (RMB thousand) | (24,458) | (15,292) | | Weighted average number of ordinary shares in issue (thousand shares) | 300,632 | 300,632 | | **Basic loss per share (RMB)** | **(RMB 0.08)** | **(RMB 0.05)** | - No diluted earnings per share is presented as there were no potential ordinary shares outstanding during the current and prior periods[24](index=24&type=chunk) [Trade and Other Receivables](index=8&type=section&id=%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE%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 decreased to RMB 610.0 million from RMB 673.9 million at the end of 2024, including net trade receivables of RMB 526.2 million and bills receivable of RMB 20.5 million | Item | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (net of impairment) | 526,221 | 602,473 | | Bills receivable | 20,464 | 18,182 | | Other receivables | 13,698 | 9,664 | | Deposits | 25,927 | 24,360 | | Prepayments | 23,735 | 19,209 | | **Total** | **610,045** | **673,888** | | Aging | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 240,714 | 297,188 | | 1 to 3 months | 236,155 | 255,056 | | 3 months to 1 year | 69,816 | 68,411 | | **Total** | **546,685** | **620,655** | - The average credit period for goods sold is **30 to 120 days** from the invoice date[26](index=26&type=chunk) [Trade and Other Payables](index=9&type=section&id=%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE%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 decreased to RMB 251.3 million from RMB 321.8 million at the end of 2024, with all amounts due for settlement within twelve months | Item | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 130,973 | 191,106 | | Bills payable | 56,250 | 56,250 | | Accruals and other payables | 64,044 | 74,427 | | **Total** | **251,267** | **321,783** | | Aging | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 100,647 | 173,461 | | 1 to 3 months | 57,644 | 63,165 | | 3 months to 1 year | 28,932 | 10,730 | | **Total** | **187,223** | **247,356** | - Bank deposits of **RMB 11,250,000** have been pledged to secure certain bills payable[28](index=28&type=chunk) [Bank and Other Borrowings](index=10&type=section&id=%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2025, total bank and other borrowings amounted to RMB 434.2 million, comprising RMB 400.1 million in current liabilities and RMB 34.1 million in non-current liabilities, with average effective annual interest rates ranging from 2.24% to 3.75%, a decrease from the prior period | Item | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Secured bank loans | 320,151 | 328,505 | | Liabilities under supplier financing arrangements | 45,000 | 45,000 | | Secured other borrowings | 69,085 | 67,148 | | **Total** | **434,236** | **440,653** | | Classified as: | | | | Current liabilities | 400,123 | 396,767 | | Non-current liabilities | 34,113 | 43,886 | - The average effective annual interest rate for bank loans ranged from **2.24% to 3.75%** (prior period: 3.00% to 6.51%), representing a decrease[31](index=31&type=chunk) - New supplier financing arrangements were entered into during the period, with **RMB 35,000,000** transferred from trade payables to liabilities under supplier financing arrangements, extending the maturity to **30 to 45 days** after the invoice date[34](index=34&type=chunk) - Other borrowings primarily relate to sale and leaseback arrangements with **Chongqing Tanshan Financial Leasing Co., Ltd.**, an associated company, with relevant property, plant and equipment pledged as collateral[35](index=35&type=chunk) [Pledged Assets](index=11&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group's total pledged assets had a carrying value of RMB 117.1 million, primarily comprising property, plant and equipment, right-of-use assets for leasehold land, and pledged deposits, serving as collateral for bills payable, bank financing, and sale and leaseback arrangements | Item | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 97,334 | 96,220 | | Right-of-use assets for leasehold land | 8,549 | 8,691 | | Pledged deposits | 11,250 | 11,250 | | **Total** | **117,133** | **116,161** | - Pledged assets are used to secure bills payable, bank financing, and sale and leaseback arrangements with associated companies[36](index=36&type=chunk) [Dividends](index=11&type=section&id=%E8%82%A1%E6%81%AF) The company did not declare any interim dividends for the six months ended June 30, 2025, or 2024; a special dividend declared in August 2024 was paid in December 2024, and a special dividend of RMB 21.934 million approved in March 2025 was recognized as dividends payable - The Company did not declare any interim dividend for the current or prior periods[37](index=37&type=chunk) - A special dividend of **HKD 0.08 per share** (totaling **RMB 21,952,000**) declared on August 26, 2024, was paid on **December 16, 2024**[37](index=37&type=chunk) - A special dividend of **HKD 0.08 per share** (totaling **RMB 22,207,000**) approved on March 25, 2025, after exchange adjustments, **RMB 21,934,000** was recognized as dividends payable as of **June 30, 2025**[37](index=37&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides management's discussion and analysis of the Group's business and financial performance, including revenue, costs, and liquidity [Business Review](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In the first half of 2025, global economic recovery was weak amid escalating geopolitical conflicts and trade protectionism, yet China's economy maintained stable growth with structural optimization, resilient industrial production, and a vibrant consumer market; the paper packaging industry faced downward price pressure but found demand support from export recovery, consumption upgrades, and new productive forces, prompting the Group to actively optimize its product structure and customer portfolio - Global economic recovery is weak, with escalating geopolitical conflicts and trade protectionism, leading to a complex and severe external environment[38](index=38&type=chunk) - China's economy maintains stable growth with structural optimization, industrial production growth exceeding expectations, a vibrant consumer market, and continuously rising retail sales[38](index=38&type=chunk) - The paper packaging industry faces downward price pressure, but resilient export recovery, consumption upgrades, and new productive forces provide downstream demand support[38](index=38&type=chunk) - The Group is actively seizing market opportunities from high-end manufacturing, consumption upgrades, and export recovery, optimizing its product structure and customer portfolio[38](index=38&type=chunk) [Financial Review](index=12&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Revenue for the period slightly decreased by 0.3% year-on-year to RMB 993.9 million, with the overall gross profit margin declining by 1.7 percentage points to 13.3%, and gross profit decreasing by 11.9% to RMB 131.8 million; basic loss per share widened to RMB 0.08, and the Board maintains cautious optimism for the second half's traditional peak season | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 993.9 | 997.2 | -0.3% | | Overall gross profit margin | 13.3% | 15.0% | -1.7个百分点 | | Gross profit | 131.8 | 149.6 | -11.9% | | Basic loss per share | RMB 0.08 | RMB 0.05 | Loss widened | - The Directors maintain a cautious optimistic view on the Group's performance in the second half of **2025**, with management continuing to monitor market conditions and take appropriate measures[39](index=39&type=chunk) [Revenue Analysis](index=13&type=section&id=%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue for the period decreased by 0.3% year-on-year to RMB 993.9 million, with sales revenue from corrugated packaging products increasing while sales revenue from corrugated paperboards decreased [Sales of Corrugated Packaging Products](index=13&type=section&id=%E9%94%80%E5%94%AE%E7%93%A6%E6%A3%B1%E7%BA%B8%E5%8C%85%E8%A3%85%E4%BA%A7%E5%93%81) This subsection details the revenue generated from the sales of corrugated packaging products | Product Type | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | Proportion | | :--- | :--- | :--- | :--- | :--- | | Corrugated packaging products | 905.8 | 901.7 | +0.5% | 91.1% | - The increase in revenue from sales of corrugated packaging products was primarily due to higher sales volume[41](index=41&type=chunk) [Sales of Corrugated Paperboards](index=13&type=section&id=%E9%94%80%E5%94%AE%E7%93%A6%E6%A3%B1%E7%BA%B8%E6%9D%BF) This subsection details the revenue generated from the sales of corrugated paperboards | Product Type | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | Proportion | | :--- | :--- | :--- | :--- | :--- | | Corrugated paperboards | 88.1 | 95.5 | -7.8% | 8.9% | - The decrease in sales of corrugated paperboards was primarily due to lower sales volume[42](index=42&type=chunk) - Revenue for the period was approximately **RMB 993.9 million**, a decrease of approximately **RMB 3.3 million** or **0.3%** compared to the prior period[40](index=40&type=chunk) [Cost of Sales](index=13&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales for the period was approximately RMB 862.1 million, a 1.7% increase year-on-year, primarily due to higher sales volume | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Cost of sales | 862.1 | 847.6 | +1.7% | - The increase in cost of sales was primarily due to higher sales volume[43](index=43&type=chunk) [Gross Profit](index=13&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit for the period was approximately RMB 131.8 million, an 11.9% decrease year-on-year, with the overall gross profit margin falling from 15.0% to 13.3%, mainly because the decline in average selling price exceeded the decrease in unit cost of raw paper | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Gross profit | 131.8 | 149.6 | -11.9% | | Overall gross profit margin | 13.3% | 15.0% | -1.7个百分点 | | Gross profit margin for corrugated packaging products | 14.1% | 15.9% | -1.8个百分点 | | Gross profit margin for corrugated paperboards | 4.1% | 6.8% | -2.7个百分点 | - The decrease in gross profit margin was primarily due to the decline in average selling price exceeding the decrease in unit cost of raw paper[44](index=44&type=chunk) [Selling and Distribution Expenses](index=14&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses increased by 0.9% from RMB 67.5 million in the prior period to RMB 68.1 million in the current period, primarily due to higher sales volume | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 68.1 | 67.5 | +0.9% | - The increase in selling and distribution expenses was primarily due to higher sales volume[45](index=45&type=chunk) [Administrative Expenses](index=14&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses were approximately RMB 72.4 million, a 14.6% decrease year-on-year, primarily due to enhanced cost control measures | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Administrative expenses | 72.4 | 84.9 | -14.6% | - The decrease in administrative expenses was primarily due to enhanced cost control measures[46](index=46&type=chunk) [Finance Costs](index=14&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs increased by 29.2% from RMB 17.7 million in the prior period to RMB 22.9 million in the current period, primarily due to an increase in bank loans | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Finance costs | 22.9 | 17.7 | +29.2% | - The increase in finance costs was primarily due to an increase in bank loans[47](index=47&type=chunk) [Loss for the Period](index=14&type=section&id=%E6%9C%AC%E6%9C%9F%E9%96%93%E8%99%A7%E6%90%8D) A loss of RMB 24.5 million was recorded for the period, widening from RMB 15.3 million in the prior period, mainly due to a decrease in average selling price and investment in new plants | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Loss for the period | (24.5) | (15.3) | Loss widened | - The increase in loss was primarily due to a decrease in average selling price and investment in new plants[48](index=48&type=chunk) [Liquidity and Capital Resources](index=14&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%92%8C%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The Group's cash inflows primarily originated from operating activities, while cash outflows were mainly for the purchase of property, plant and equipment, and repayment of bank borrowings and finance leases [Working Capital](index=14&type=section&id=%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91) This subsection provides an overview of the Group's working capital position, including cash and cash equivalents | Metric | 2025-06-30 (RMB million) | | :--- | :--- | | Cash and cash equivalents | 120.6 | [Cash Flows](index=15&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) This subsection details the Group's cash flows from operating, investing, and financing activities for the interim period | Cash Flow Type | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 162.4 | 35.1 | +127.3 | | Net cash used in investing activities | (18.7) | (54.2) | -35.5 | | Net cash used in financing activities | (122.5) | (76.5) | +46.0 | | Cash and cash equivalents at end of period | 120.6 | 49.7 | +70.9 | - The increase in net cash generated from operating activities was primarily due to a decrease in inventory levels and changes in receivables[52](index=52&type=chunk) - The decrease in net cash used in investing activities was primarily due to equipment purchases[53](index=53&type=chunk) - The increase in net cash used in financing activities was primarily due to the repayment of finance lease principal and interest, as well as bank loans and interest[54](index=54&type=chunk) - The Group's cash inflows primarily originated from operating activities, while cash outflows were mainly for the purchase of property, plant and equipment, and repayment of bank borrowings[50](index=50&type=chunk) [Major Acquisitions and Disposals](index=16&type=section&id=%E4%B8%BB%E8%A6%81%E6%94%B6%E8%B3%BC%E4%BA%8B%E9%A0%85%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) The Group had no major acquisitions or disposals during the period - The Group had no major acquisitions or disposals during the period[55](index=55&type=chunk) [Contingent Liabilities](index=16&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 - As of **June 30, 2025**, the Group had no significant contingent liabilities[57](index=57&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=16&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares listed on the Stock Exchange during the period - During the period, the Company did not redeem any shares listed on the Stock Exchange, nor did the Company or any of its subsidiaries purchase or sell any such shares[58](index=58&type=chunk) [Interim Dividend](index=16&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has resolved not to declare any interim dividend for the period - The Board has resolved not to declare any interim dividend for the period[59](index=59&type=chunk) [Significant Events After the Period](index=16&type=section&id=%E6%9C%AC%E6%9C%9F%E9%96%93%E5%BE%8C%E7%9A%84%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) No significant events occurred after the period and up to the date of this announcement - No significant events occurred after the period and up to the date of this announcement[60](index=60&type=chunk) [Corporate Governance and Other Information](index=16&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section outlines the company's corporate governance practices, compliance with securities trading standards, review of interim results, and board composition [Corporate Governance](index=16&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The company is committed to maintaining high standards of corporate governance, with one deviation from Corporate Governance Code provision C.2.1 where Mr. Zheng Xianjun holds both Chairman and Chief Executive Officer roles; the Board believes this arrangement is in the Group's best interest and has implemented sufficient checks and balances - The Company is committed to maintaining high standards of corporate governance, with no material deviations except for a departure from **Code Provision C.2.1** of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[61](index=61&type=chunk) - Mr. Zheng Xianjun serves concurrently as Executive Director, Chief Executive Officer, and Chairman of the Board, an arrangement the Board believes ensures consistent internal leadership, aligns with the Group's best interests, and is supported by sufficient checks and balances[61](index=61&type=chunk)[62](index=62&type=chunk) [Standard Code for Securities Transactions](index=17&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) 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, with all directors confirming compliance during the period and up to the announcement date - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[64](index=64&type=chunk) - Following specific enquiries, each Director confirmed compliance with the required standards set out in the Model Code during the period and up to the date of this announcement[64](index=64&type=chunk) [Review of Interim Results](index=17&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The company's audit committee has reviewed the Group's accounting principles, practices, and unaudited financial results, discussing audit, internal control, risk management, and financial reporting matters, with the condensed consolidated interim financial statements reviewed by independent auditor BDO Limited in accordance with Hong Kong Standard on Review Engagements 2410 - The Company's Audit Committee has reviewed the accounting principles and practices adopted by the Group, and has also reviewed and confirmed the Group's unaudited financial results for the period[65](index=65&type=chunk) - Independent auditor **BDO Limited** has reviewed the condensed consolidated interim financial statements for the period in accordance with **Hong Kong Standard on Review Engagements 2410**[65](index=65&type=chunk) [Publication of Interim Results and Interim Report](index=18&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%92%8C%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the Stock Exchange and the company's website, and the interim report will be dispatched to shareholders and published in due course - This interim results announcement is published on the Stock Exchange and the Company's website[66](index=66&type=chunk) - The Group's interim report for the period, containing all information required by the Listing Rules, will be dispatched to shareholders and published in due course[66](index=66&type=chunk) [Board of Directors](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) As of the announcement date, the company's Board of Directors comprises two executive directors (Mr. Zheng Xianjun, Mr. Tan Dacheng) and four independent non-executive directors (Mr. Wang Jisheng, Mr. Jiang Tianxi, Dr. Su Chongwu, Ms. Zhu Ying) - The Company's executive directors are **Mr. Zheng Xianjun** and **Mr. Tan Dacheng**[67](index=67&type=chunk) - The Company's independent non-executive directors are **Mr. Wang Jisheng**, **Mr. Jiang Tianxi**, **Dr. Su Chongwu**, and **Ms. Zhu Ying**[67](index=67&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 就 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。 Feiyang International Holdings Group Limited 飛揚國際控股（集團）有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1901） 截 至2025年6月30日 止 六 個 月 的 中 期 業 績 公 告 | 財 | 務 | 摘 | 要 | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company's H1 2025 financial performance shows a net loss, though basic earnings per share improved from the prior year - | Indicator | Amount (RMB million) | | :--- | :--- | | Operating Revenue | 48,599 | | Total Profit | -1,069 | | Net Profit Attributable to Shareholders of the Company | -1,144 | | Basic Earnings Per Share | -0.122 Yuan | - The company achieved **operating revenue of RMB 48,599 million** in H1 2025, with a **total loss of RMB 1,069 million**, and a **net loss attributable to shareholders of RMB 1,144 million**. **Basic earnings per share were RMB -0.122**, representing a reduced loss compared to **RMB -0.287** in the prior period[5](index=5&type=chunk) [Definitions](index=2&type=section&id=Definitions) This section provides key term definitions used in the report, ensuring accurate interpretation - This section provides detailed explanations of key terms used in the report, including Company, Group, Anshan Iron and Steel, Angang, Angang Finance Company, and various framework agreements (e.g., "Commodity Supply Framework Agreement", "Service Supply Framework Agreement", "Financial Services Agreement"), ensuring accurate report interpretation[6](index=6&type=chunk)[7](index=7&type=chunk) [I. Key Accounting Data and Financial Indicators](index=4&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section presents the Group's key accounting data and financial indicators, highlighting year-on-year changes and period-end balances Key Accounting Data and Financial Indicators (H1 2025 vs Prior Period) | Item | Current Period (RMB million) | Prior Period (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 48,599 | 55,449 | -12.35 | | Net Profit Attributable to Shareholders of Listed Company | -1,144 | -2,689 | 57.46 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | -1,231 | -2,670 | 53.90 | | Net Cash Flow from Operating Activities | 405 | 572 | -29.20 | | Basic Earnings Per Share (Yuan/share) | -0.122 | -0.287 | 57.49 | | Diluted Earnings Per Share (Yuan/share) | -0.122 | -0.287 | 57.49 | | Weighted Average Return on Net Assets (%) | -2.43 | -5.03 | Increased by 2.60 percentage points | Key Accounting Data and Financial Indicators (End of Current Period vs End of Prior Year) | Item | End of Current Period (RMB million) | End of Prior Year (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 98,421 | 100,578 | -2.14 | | Owners' Equity Attributable to Shareholders of Listed Company | 46,610 | 47,679 | -2.24 | Non-Recurring Gains and Losses (H1 2025) | Item | Amount (RMB million) | | :--- | :--- | | Disposal and Scrapping Gains/Losses of Non-Current Assets | 2 | | Government Grants Included in Current Profit/Loss | 101 | | Fair Value Changes of Trading Financial Assets | 1 | | Fair Value Changes of Other Non-Current Financial Assets | 16 | | Reversal of Impairment Provisions for Accounts Receivable Subject to Separate Impairment Testing | 1 | | Other Non-Operating Income and Expenses Apart from the Above | 15 | | **Subtotal** | **136** | | Less: Income Tax Impact | 26 | | Impact on Minority Shareholders' Equity (After Tax) | 23 | | **Total** | **87** | [II. Board Report](index=6&type=section&id=II.%20Board%20Report) The Board Report details the company's operational performance, financial changes, and strategic initiatives for the reporting period [(I) Overview](index=6&type=section&id=%28I%29%20Overview) In H1 2025, the company navigated a complex market, improving overall production and operations through "Five-Type" enterprise construction, despite a revenue decline - The company adheres to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implementing important speeches and continuously deepening the construction of "Five-Type" enterprises, leading to overall improvement in production and operations[14](index=14&type=chunk) H1 2025 Key Operating Data | Indicator | Amount/Quantity | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | RMB 48,599 million | -12.35 | | Net Profit Attributable to Shareholders of Listed Company | RMB -1,144 million | Reduced loss by 57.46 | | Pig Iron Production | 12.1643 million tons | +0.30 | | Steel Production | 12.7908 million tons | -0.53 | | Rolled Steel Production | 12.0353 million tons | -0.52 | | Steel Sales | 12.0211 million tons | +0.08 | | Steel Product Sales Ratio | 99.88% | - | - The company deepened the construction of "Model-Type" enterprises, strengthening political leadership and talent team building, increasing the proportion of young cadres, and making progress in scientific and technological talent cultivation. It also strictly governed the party and actively carried out "I Do Practical Things for the Masses" activities[15](index=15&type=chunk) - The company deepened the construction of "Vibrant-Type" enterprises, promoting market-oriented reforms, deepening Chaoyang Steel Reform 3.0, reshaping the organizational management model, establishing a material procurement center, and building a "2+3+1" performance appraisal system to stimulate micro-entity vitality[16](index=16&type=chunk)[17](index=17&type=chunk) - The company deepened the construction of "Innovative-Type" enterprises, actively serving national strategies, high-standard preparation of the "2030 New Materials Major Project" task guide, accelerating achievement transformation, with high-end product sales increasing by **2.3%** year-on-year. It also strengthened AI+ technology integration applications, established the "Steel Process AI Application Innovation Center", and launched the "Ancloud Zhidin" AI large model platform[18](index=18&type=chunk) - The company deepened the construction of "Brand-Type" enterprises, strengthening domestic and international channel construction, with sales in the Northeast region increasing by **9.5%**, export shipments increasing by **3.9%**, and major project sales growing by **22.3%**. It actively visited customers to enhance service advantages and built a green brand by promoting ultra-low emission transformation projects[19](index=19&type=chunk)[20](index=20&type=chunk) - The company deepened the construction of "Operational-Type" enterprises, vigorously adjusting product mix for efficiency, with the product adjustment index increasing by **7.5%**. It deepened systematic cost reduction, with external energy cost per ton of steel decreasing by **15.2%** year-on-year, Anshan headquarters logistics cost decreasing by **8.8%** year-on-year, and quality cost per ton of steel decreasing by **7.2%**. It strengthened procurement management, with pulverized coal and imported iron ore procurement prices outperforming the market. It also strengthened risk prevention and improved capital efficiency, reducing "two funds" occupation by **RMB 1.829 billion** from the beginning of the year[21](index=21&type=chunk) [1. Year-on-Year Changes in Key Financial Data](index=10&type=section&id=1.%20Year-on-Year%20Changes%20in%20Key%20Financial%20Data) This section details the year-on-year changes and reasons for the company's key financial data in H1 2025, showing decreased revenue but significantly narrowed net loss, increased financial and R&D expenses, and decreased net cash flow Key Financial Data Year-on-Year Changes (H1 2025) | Item | Current Period (RMB million) | Prior Period (RMB million) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 48,599 | 55,449 | -12.35 | – | | Operating Cost | 48,283 | 56,533 | -14.59 | – | | Selling Expenses | 231 | 267 | -13.48 | – | | Administrative Expenses | 486 | 648 | -25.00 | – | | Financial Expenses | 170 | 120 | 41.67 | Impacted by reasonable increase in interest-bearing debt to cover operating losses and investment expenditure gaps | | Income Tax Expense | 45 | 50 | -10.00 | – | | Research and Development Expenses | 259 | 191 | 35.60 | Impacted by increased investment in external cooperative R&D projects and national scientific research topics | | Total Profit | -1,069 | -2,623 | 59.25 | Improved steel industry situation, company's increased efforts in cost reduction, efficiency improvement, market expansion, and product mix adjustment | | Net Profit Attributable to Shareholders of Listed Company | -1,144 | -2,689 | 57.46 | Same as above, reduced loss by RMB 1,545 million | Cash Flow Year-on-Year Changes (H1 2025) | Item | Current Period (RMB million) | Prior Period (RMB million) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 405 | 572 | -29.20 | – | | Net Cash Flow from Investing Activities | -1,936 | -1,212 | -59.74 | Increased other investment expenditures due to expanded use of bills, and increased equity investment expenditures | | Net Cash Flow from Financing Activities | 121 | 376 | -67.82 | Decreased capital contributions year-on-year, decreased net increase in bank borrowings year-on-year, and increased interest expenses | | Net Increase in Cash and Cash Equivalents | -1,410 | -264 | -434.09 | Net cash flows from operating, investing, and financing activities all decreased year-on-year | [2. Significant Changes in Profit Composition or Sources During the Reporting Period](index=13&type=section&id=2.%20Significant%20Changes%20in%20Profit%20Composition%20or%20Sources%20During%20the%20Reporting%20Period) The company's profit composition or sources did not undergo significant changes during the reporting period - The company's profit composition or sources did not undergo significant changes during the reporting period[27](index=27&type=chunk) [3. Composition of Operating Revenue](index=14&type=section&id=3.%20Composition%20of%20Operating%20Revenue) This section analyzes the company's operating revenue composition by industry, product, and region, including year-on-year changes in gross profit margin, with steel rolling and processing remaining the primary revenue source Operating Revenue Composition (H1 2025) | Item | Amount (RMB million) | Proportion of Operating Revenue (%) | Prior Period Amount (RMB million) | Prior Period Proportion of Operating Revenue (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | **48,599** | **100** | **55,449** | **100** | **-12.35** | | **By Industry** | | | | | | | Steel Rolling and Processing Industry | 48,391 | 99.57 | 55,351 | 99.82 | -12.57 | | Other | 208 | 0.43 | 98 | 0.18 | 112.24 | | **By Product** | | | | | | | Steel Products | 43,189 | 88.87 | 48,554 | 87.57 | -11.05 | | Other | 5,410 | 11.13 | 6,895 | 12.43 | -21.54 | | **By Region** | | | | | | | Mainland China | 45,158 | 92.92 | 51,767 | 93.36 | -12.77 | | Exports | 3,441 | 7.08 | 3,682 | 6.64 | -6.55 | Gross Profit Margin Analysis of Main Business (H1 2025) | Item | Operating Revenue (RMB million) | Operating Cost (RMB million) | Gross Profit Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Gross Profit Margin Year-on-Year Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | Steel Rolling and Processing Industry | 48,391 | 48,096 | 0.61 | -12.57 | -14.79 | 2.59 | | **By Product** | | | | | | | | Hot Rolled Sheet Series Products | 15,085 | 15,384 | -1.98 | -13.26 | -14.62 | 1.63 | | Cold Rolled Sheet Series Products | 16,468 | 16,022 | 2.71 | -10.18 | -13.39 | 3.60 | | Medium and Heavy Plates | 8,509 | 8,024 | 5.70 | -7.20 | -13.25 | 6.58 | | **By Region** | | | | | | | | Mainland China | 44,950 | 44,518 | 0.96 | -13.00 | -15.41 | 2.82 | | Exports | 3,441 | 3,578 | -3.98 | -6.55 | -6.26 | -0.31 | [4. Liquidity and Financial Resources](index=16&type=section&id=4.%20Liquidity%20and%20Financial%20Resources) The company maintains good liquidity, with ample credit resources and smooth financing channels to meet debt obligations, and discloses period-end capital commitments [(1) Borrowings and Credit Facilities](index=16&type=section&id=%281%29%20Borrowings%20and%20Credit%20Facilities) As of June 30, 2025, the Group's long-term borrowings totaled RMB 3,880 million with an average interest rate of 2.33%, supported by excellent credit standing and ample financing channels - As of **June 30, 2025**, the Group's long-term borrowings (excluding current portion) amounted to **RMB 3,880 million**, with an average borrowing interest rate of **2.33%**[32](index=32&type=chunk) - The company maintains an "AAA" long-term credit rating, possesses ample credit resources from over ten financial institutions, and has smooth financing channels, enabling it to repay maturing debts[32](index=32&type=chunk) [(2) Capital Commitments](index=16&type=section&id=%282%29%20Capital%20Commitments) As of June 30, 2025, the Group's total capital commitments were RMB 2,502 million, primarily for construction and renovation contracts and external investment contracts Capital Commitments Composition (June 30, 2025) | Item | Amount (RMB million) | | :--- | :--- | | Construction and Renovation Contracts Signed but Not Yet Performed or Fully Performed | 2,488 | | External Investment Contracts Signed but Not Yet Performed or Fully Performed | 14 | | **Total** | **2,502** | [5. Foreign Exchange Risk](index=16&type=section&id=5.%20Foreign%20Exchange%20Risk) The Group's foreign exchange risk primarily arises from import and export agency transactions conducted through Angang International Trade Company, where exchange rate fluctuations can impact sales and procurement costs - The Group's foreign currency transactions are entirely conducted through Angang International Trade Company for import and export agency, with foreign currency risk primarily reflected in the impact of exchange rate fluctuations on sales and procurement costs during agency settlement[33](index=33&type=chunk) [Analysis of Other Income and Profit/Loss Items](index=17&type=section&id=Analysis%20of%20Other%20Income%20and%20Profit%2FLoss%20Items) This section analyzes the amounts, causes, and sustainability of non-recurring profit and loss items, including investment income, fair value changes, asset impairment losses, other income, and non-operating income/expenses Other Income and Profit/Loss Items (H1 2025) | Item | Amount (RMB million) | Proportion of Total Profit (%) | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 218 | Not Applicable | Primarily long-term equity investment income accounted for using the equity method | Yes | | Fair Value Change Gains/Losses | -12 | Not Applicable | Primarily fair value changes of derivative financial instruments and other non-current financial assets | Yes | | Asset Impairment Losses | -81 | Not Applicable | Provision for inventory depreciation | No | | Other Income | 146 | Not Applicable | Primarily government grants and tax incentives | No | | Non-Operating Income | 21 | Not Applicable | Primarily gains from disposal of non-current assets and income from unpayable accounts | No | | Non-Operating Expenses | 4 | Not Applicable | Primarily losses from disposal of non-current assets | No | [1. Significant Changes in Asset Composition](index=18&type=section&id=1.%20Significant%20Changes%20in%20Asset%20Composition) This section lists the period-end balances, proportion of total assets, and changes compared to the prior year-end for key balance sheet items, showing a significant increase in short-term borrowings and a significant decrease in long-term borrowings Significant Changes in Asset Composition (June 30, 2025 vs End of Prior Year) | Item | End of Current Period Amount (RMB million) | Proportion of Total Assets (%) | End of Prior Year Amount (RMB million) | Prior Year-End Proportion of Total Assets (%) | Change in Proportion (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 3,134 | 3.18 | 4,544 | 4.52 | -1.34 | | Inventories | 13,853 | 14.08 | 14,769 | 14.68 | -0.60 | | Fixed Assets | 52,714 | 53.56 | 51,842 | 51.54 | 2.02 | | Construction in Progress | 4,806 | 4.88 | 5,802 | 5.77 | -0.89 | | Short-Term Borrowings | 7,749 | 7.87 | 1,174 | 1.17 | 6.70 | | Contract Liabilities | 4,917 | 5.00 | 4,557 | 4.53 | 0.47 | | Long-Term Borrowings | 3,880 | 3.94 | 10,991 | 10.93 | -6.99 | [2. Major Overseas Assets](index=18&type=section&id=2.%20Major%20Overseas%20Assets) The company had no major overseas assets during the reporting period - The company had no major overseas assets during the reporting period[38](index=38&type=chunk) [3. Assets and Liabilities Measured at Fair Value](index=19&type=section&id=3.%20Assets%20and%20Liabilities%20Measured%20at%20Fair%20Value) This section discloses the company's financial assets and liabilities measured at fair value, including trading financial assets, derivative financial assets, other equity instrument investments, other non-current financial assets, and derivative financial liabilities Assets and Liabilities Measured at Fair Value (June 30, 2025) | Item | Beginning Balance (RMB million) | Fair Value Change Gains/Losses for the Period (RMB million) | Cumulative Fair Value Changes Included in Equity (RMB million) | Ending Balance (RMB million) | | :--- | :--- | :--- | :--- | :--- | | **Financial Assets** | | | | | | Trading Financial Assets (Excluding Derivative Financial Assets) | 15 | 1 | | 16 | | Derivative Financial Assets | | 4 | | 4 | | Other Equity Instrument Investments | 690 | | 258 | 696 | | Other Non-Current Financial Assets | 104 | 16 | | 120 | | **Subtotal of Financial Assets** | **809** | **21** | **258** | **836** | | **Financial Liabilities** | 1 | 21 | | 22 | - There were no significant changes in the measurement attributes of the company's major assets during the reporting period[40](index=40&type=chunk) [4. Capital-to-Debt Ratio](index=20&type=section&id=4.%20Capital-to-Debt%20Ratio) As of June 30, 2025, the Group's shareholder equity to debt ratio was 0.94 times, consistent with December 31, 2024 - As of **June 30, 2025**, the Group's shareholder equity to debt ratio was **0.94 times**, consistent with the end of the prior year[41](index=41&type=chunk) [5. Restricted Assets at the End of the Reporting Period](index=20&type=section&id=5.%20Restricted%20Assets%20at%20the%20End%20of%20the%20Reporting%20Period) As of June 30, 2025, the Group's restricted assets consisted of pledged time deposits of RMB 216 million listed under other current assets - As of **June 30, 2025**, the Group's restricted assets consisted of pledged time deposits of **RMB 216 million**[42](index=42&type=chunk) [6. Contingent Liabilities](index=20&type=section&id=6.%20Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of **June 30, 2025**, the Group had no contingent liabilities[43](index=43&type=chunk) [(V) Second Half Operating Plan](index=20&type=section&id=%28V%29%20Second%20Half%20Operating%20Plan) The company's H2 plan focuses on high-end, intelligent, and green development, deepening reforms, and enhancing quality, cost reduction, and efficiency to achieve annual targets - The company's second half operating plan focuses on high-end, intelligent, and green development, and the construction of "Five-Type" enterprises[44](index=44&type=chunk) - Key strategies include strict party governance, deepening reforms, strengthening technological innovation, enhancing brand building, and focusing on quality improvement and efficiency enhancement[44](index=44&type=chunk) [External Investments](index=21&type=section&id=External%20Investments) This section discloses the company's external investments during the reporting period, including total investment, securities investments, and derivative investments, with detailed explanations of hedging purposes, risk analysis, and control measures for derivatives [1. Overall Situation](index=21&type=section&id=1.%20Overall%20Situation) During the reporting period, the company's external investment amounted to RMB 271 million, a 160.58% increase year-on-year External Investment Situation (H1 2025) | Indicator | Amount (RMB million) | | :--- | :--- | | Investment Amount for the Reporting Period | 271 | | Investment Amount for the Prior Period | 104 | | Change Magnitude (%) | 160.58 | [2. Significant Equity Investments Acquired During the Reporting Period](index=21&type=section&id=2.%20Significant%20Equity%20Investments%20Acquired%20During%20the%20Reporting%20Period) The company did not acquire any significant equity investments during the reporting period - The company did not acquire any significant equity investments during the reporting period[46](index=46&type=chunk) [3. Significant Non-Equity Investments in Progress During the Reporting Period](index=21&type=section&id=3.%20Significant%20Non-Equity%20Investments%20in%20Progress%20During%20the%20Reporting%20Period) The company had no significant non-equity investments in progress during the reporting period - The company had no significant non-equity investments in progress during the reporting period[46](index=46&type=chunk) [4. Financial Asset Investments](index=22&type=section&id=4.%20Financial%20Asset%20Investments) During the reporting period, the company engaged in securities and derivative investments, with derivative investments primarily for hedging purposes to mitigate commodity price fluctuation risks [(1) Securities Investments](index=22&type=section&id=%281%29%20Securities%20Investments) The company holds shares in Zhuye Group and Qianli Technology, both measured at fair value, with period-end book values of RMB 52 million and RMB 16 million, respectively Securities Investment Situation (June 30, 2025) | Security Type | Security Code | Security Abbreviation | Beginning Book Value (RMB million) | Fair Value Change Gains/Losses for the Period (RMB million) | Ending Book Value (RMB million) | Accounting Subject | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stock | 600961 | Zhuye Group | 36 | 16 | 52 | Trading Financial Assets | Own Funds | | Stock | 601777 | Qianli Technology | 15 | 1 | 16 | Trading Financial Assets | Debt Restructuring | [(2) Derivative Investments](index=22&type=section&id=%282%29%20Derivative%20Investments) During the reporting period, the company engaged in futures hedging derivative investments for hedging purposes, with a period-end investment amount of RMB 362 million, representing 0.76% of net assets, effectively managing market fluctuation risks [1) Derivative Investments for Hedging Purposes During the Reporting Period](index=22&type=section&id=1%EF%BC%89%20Derivative%20Investments%20for%20Hedging%20Purposes%20During%20the%20Reporting%20Period) The company conducted futures hedging, with a period-end investment of RMB 362 million, representing 0.76% of net assets, effectively offsetting commodity price risks through spot-futures linkage and robust risk management Derivative Investment Situation (H1 2025) | Derivative Investment Type | Beginning Balance (RMB million) | Fair Value Change Gains/Losses for the Period (RMB million) | Ending Balance (RMB million) | Proportion of Ending Investment Amount to Company's Net Assets (%) | | :--- | :--- | :--- | :--- | :--- | | Futures Hedging | 244 | -29 | 362 | 0.76 | - The company's financial derivative activities are all based on hedging principles, with all derivative operations corresponding to actual commodity businesses, achieving good overall hedging effectiveness through spot-futures linkage, where financial derivative gains/losses can effectively offset actual commodity gains/losses[52](index=52&type=chunk) - The company effectively prevents market risk, liquidity risk, credit risk, operational risk, and legal risk by formulating and improving the "Hedging Business Management Measures", strengthening personnel training, and designing specific operating procedures[53](index=53&type=chunk) [2) Derivative Investments for Speculative Purposes During the Reporting Period](index=25&type=section&id=2%EF%BC%89%20Derivative%20Investments%20for%20Speculative%20Purposes%20During%20the%20Reporting%20Period) The company did not engage in derivative investments for speculative purposes during the reporting period - The company did not engage in derivative investments for speculative purposes during the reporting period[54](index=54&type=chunk) [5. Use of Raised Funds](index=25&type=section&id=5.%20Use%20of%20Raised%20Funds) The company had no use of raised funds during the reporting period - The company had no use of raised funds during the reporting period[54](index=54&type=chunk) [(VII) Significant Asset and Equity Disposals](index=25&type=section&id=%28VII%29%20Significant%20Asset%20and%20Equity%20Disposals) The company did not undertake any significant asset or equity disposals during the reporting period - The company did not undertake any significant asset disposals during the reporting period[54](index=54&type=chunk) - The company did not undertake any significant equity disposals during the reporting period[54](index=54&type=chunk) [(VIII) Analysis of Major Subsidiaries and Associates](index=26&type=section&id=%28VIII%29%20Analysis%20of%20Major%20Subsidiaries%20and%20Associates) This section lists the company's major subsidiaries and associates with a net profit impact exceeding 10%, including financial data for Chaoyang Steel and Angang ThyssenKrupp Automotive Steel Co., Ltd Major Subsidiaries and Associates (H1 2025) | Company Name | Company Type | Main Business | Registered Capital | Total Assets (RMB million) | Net Assets (RMB million) | Operating Revenue (RMB million) | Operating Profit (RMB million) | Net Profit (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chaoyang Steel | Production Enterprise | Steel Rolling and Processing | 8,000 | 6,468 | 3,522 | 3,660 | -204 | -203 | | Angang ThyssenKrupp Automotive Steel Co., Ltd | Production Enterprise | Metal Products | USD 132 million | 3,878 | 1,424 | 2,616 | 384 | 320 | - The company neither acquired nor disposed of subsidiaries during the reporting period[57](index=57&type=chunk) [(IX) Structured Entities Controlled by the Company](index=26&type=section&id=%28IX%29%20Structured%20Entities%20Controlled%20by%20the%20Company) The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[58](index=58&type=chunk) [(X) Purchase, Sale or Redemption of the Company's Listed Shares](index=26&type=section&id=%28X%29%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Shares) On February 28, 2025, the company completed the repurchase and cancellation of 14,180,048 restricted shares held by 183 incentive recipients; no other securities were purchased, sold, or redeemed - On **February 28, 2025**, the company completed the repurchase and cancellation of **14,180,048 restricted shares** held by **183 incentive recipients**[59](index=59&type=chunk) - Apart from the aforementioned, the company and its subsidiaries did not purchase, sell, or redeem any securities during the reporting period[59](index=59&type=chunk) [(XI) Directors' Securities Transactions](index=27&type=section&id=%28XI%29%20Directors%27%20Securities%20Transactions) The company's Board of Directors has adopted a code for directors' securities transactions and supervises employee transactions with sensitive information, with all board members confirming compliance - The company's Board of Directors has adopted a code for directors' securities transactions and imposes supervision on securities transactions by employees who may possess sensitive information[60](index=60&type=chunk) - Board members confirmed compliance with the standards stipulated in Appendix C3 of the Hong Kong Stock Exchange Listing Rules[60](index=60&type=chunk) [(XII) Independent Non-Executive Directors](index=27&type=section&id=%28XII%29%20Independent%20Non-Executive%20Directors) During the reporting period, the company's Board of Directors complied with the Hong Kong Stock Exchange Listing Rules regarding the number and professional qualifications of independent non-executive directors - The company's Board of Directors complies with Rule 3.10(1) of the Hong Kong Stock Exchange Listing Rules regarding a minimum of three independent non-executive directors[61](index=61&type=chunk) - The company's Board of Directors complies with Rule 3.10(2) of the Hong Kong Stock Exchange Listing Rules regarding one independent non-executive director possessing professional qualifications or expertise in accounting/relevant financial management[61](index=61&type=chunk) [(XIII) Audit Committee](index=27&type=section&id=%28XIII%29%20Audit%20Committee) The company has established an Audit Committee, which has reviewed the adopted accounting standards, principles, and methods, as well as the unaudited semi-annual financial report for the six months ended June 30, 2025 - The company has established an Audit Committee in compliance with Rule 3.21 of the Hong Kong Stock Exchange Listing Rules[62](index=62&type=chunk) - The Audit Committee has reviewed the company's accounting standards, principles, and methods, and considered auditing, internal controls, and the semi-annual financial report[62](index=62&type=chunk) [III. Significant Matters](index=28&type=section&id=III.%20Significant%20Matters) This section covers significant matters including profit distribution, related party transactions, major contracts, and corporate governance [(I) Profit Distribution and Capital Reserve to Share Capital Conversion Plan for the Current Period](index=28&type=section&id=%28I%29%20Profit%20Distribution%20and%20Capital%20Reserve%20to%20Share%20Capital%20Conversion%20Plan%20for%20the%20Current%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[63](index=63&type=chunk) [(II) Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties](index=28&type=section&id=%28II%29%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties) During the reporting period, there were no non-operating funds occupied by controlling shareholders or other related parties of the listed company - During the reporting period, there were no non-operating funds occupied by controlling shareholders or other related parties of the listed company[64](index=64&type=chunk) [(III) Significant Related Party Transactions](index=28&type=section&id=%28III%29%20Significant%20Related%20Party%20Transactions) This section details the company's significant related party transactions during the reporting period, including procurement, services, sales, and financial services with related financial companies, all priced at market rates and within approved limits [1. Related Party Transactions Related to Ordinary Course of Business](index=28&type=section&id=1.%20Related%20Party%20Transactions%20Related%20to%20Ordinary%20Course%20of%20Business) The company engaged in various ordinary course related party transactions with Angang Group and its subsidiaries, including procurement, services, sales, and financial services, all at market prices and within approved limits Ordinary Course Related Party Procurement of Goods/Acceptance of Services Transactions (H1 2025) | Related Party | Relationship | Transaction Type | Transaction Amount (RMB million) | Proportion of Similar Transactions (%) | Approved Transaction Limit (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Angang Group Mining Co., Ltd. | Under control of the same controlling shareholder | Procurement of Goods/Acceptance of Services | 7,929 | 12.75 | | | Angang Green Gold Industry Development Co., Ltd. | Contact person of controlling shareholder | Procurement of Goods/Acceptance of Services | 1,538 | 2.47 | | | Delin Logport Supply Chain Service Co., Ltd. | Under control of the same controlling shareholder | Procurement of Goods/Acceptance of Services | 1,203 | 1.93 | | | Shanxi Wuchan International Energy Co., Ltd. | Contact person of controlling shareholder | Procurement of Goods/Acceptance of Services | 497 | 0.80 | | | Angang Group Zhongyuan Industry Development Co., Ltd. | Under control of the same controlling shareholder | Procurement of Goods/Acceptance of Services | 478 | 0.77 | | | Anshan Iron and Steel Metallurgical Furnace Material Technology Co., Ltd. | Under control of the same controlling shareholder | Procurement of Goods/Acceptance of Services | 400 | 0.64 | | | Anshan Iron and Steel Group Refractory Material Co., Ltd. | Under control of the same controlling shareholder | Procurement of Goods/Acceptance of Services | 399 | 0.64 | | | Benxi Steel Group Co., Ltd. | Under control of the same controlling shareholder | Procurement of Goods/Acceptance of Services | 324 | 0.52 | | | Angang Casting Steel Co., Ltd. | Under control of the same controlling shareholder | Procurement of Goods/Acceptance of Services | 262 | 0.42 | | | Lingyuan Iron and Steel Group Co., Ltd. | Under control of the same controlling shareholder | Procurement of Goods/Acceptance of Services | 259 | 0.42 | | | Other Subsidiaries of Angang Group | Under control of the same controlling shareholder | Procurement of Goods/Acceptance of Services | 510 | 0.82 | | | **Subtotal** | | **Procurement of Goods** | **13,799** | **22.18** | **50,598** | Ordinary Course Related Party Acceptance of Services Transactions (H1 2025) | Related Party | Relationship | Transaction Type | Transaction Amount (RMB million) | Proportion of Similar Transactions (%) | Approved Transaction Limit (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Delin Logport Supply Chain Service Co., Ltd. | Under control of the same controlling shareholder | Acceptance of Services | 1,295 | 18.49 | | | Angang Group Engineering Technology Development Co., Ltd. | Under control of the same controlling shareholder | Acceptance of Services | 502 | 7.17 | | | Anshan Iron and Steel Group Co., Ltd. | Controlling Shareholder | Acceptance of Services | 336 | 4.80 | | | Angang Group Engineering Technology Co., Ltd. | Contact person of controlling shareholder | Acceptance of Services | 334 | 4.77 | | | Other Subsidiaries of Angang Group | Under control of the same controlling shareholder | Acceptance of Services | 799 | 11.41 | | | **Subtotal** | | **Acceptance of Services** | **3,266** | **46.64** | **12,346** | Ordinary Course Related Party Sales of Products/Provision of Services Transactions (H1 2025) | Related Party | Relationship | Transaction Type | Transaction Amount (RMB million) | Proportion of Similar Transactions (%) | Approved Transaction Limit (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Delin Logport Supply Chain Service Co., Ltd. | Under control of the same controlling shareholder | Sales of Products/Provision of Services | 2,425 | 3.68 | | | Angang Cold Rolled Steel Plate (Putian) Co., Ltd. | Under control of the same controlling shareholder | Sales of Products/Provision of Services | 957 | 1.45 | | | Benxi Steel Group Co., Ltd. | Under control of the same controlling shareholder | Sales of Products/Provision of Services | 573 | 0.87 | | | Angang Group International Economic and Trade Co., Ltd. | Under control of the same controlling shareholder | Sales of Products/Provision of Services | 377 | 0.57 | | | Angang Group Zhongyuan Industry Development Co., Ltd. | Under control of the same controlling shareholder | Sales of Products/Provision of Services | 277 | 0.42 | | | Other Subsidiaries of Angang Group | Under control of the same controlling shareholder | Sales of Products/Provision of Services | 424 | 0.64 | | | **Subtotal** | | **Sales of Products** | **5,033** | **7.63** | **23,260** | | Angang Group | Under control of the same controlling shareholder | Provision of Services | 210 | 23.57 | | | **Subtotal** | | **Provision of Services** | **210** | **23.57** | **544** | Ordinary Course Related Party Acceptance of Financial Services Transactions (H1 2025) | Related Party | Relationship | Transaction Type | Transaction Content | Transaction Amount (RMB million) | Proportion of Similar Transactions (%) | Approved Transaction Limit (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Angang Finance Company | Under control of the same controlling shareholder | Acceptance of Financial Services | Settlement Fund Deposit Interest | 18 | 69.23 | 100 | | Angang Finance Company | Under control of the same controlling shareholder | Acceptance of Financial Services | Maximum Daily Deposit Balance | 4,781 | – | 5,000 | | Angang Finance Company | Under control of the same controlling shareholder | Acceptance of Financial Services | Credit Business Interest | 1 | 0.57 | 250 | | Angang Finance Company | Under control of the same controlling shareholder | Acceptance of Financial Services | Entrusted Loan Interest | – | – | 100 | | Angang Group Capital Holdings Co., Ltd. | Under control of the same controlling shareholder | Acceptance of Financial Services | Commercial Factoring | – | – | 1,000 | | Angang Group Capital Holdings Co., Ltd. | Under control of the same controlling shareholder | Acceptance of Financial Services | Commercial Factoring Interest | – | – | 50 | | Angang Group Capital Holdings Co., Ltd. | Under control of the same controlling shareholder | Acceptance of Financial Services | Provide Commercial Factoring for Company's Suppliers | 29 | 16.86 | 3,000 | - During the reporting period, the total amount of the company's ordinary course related party transactions did not exceed the upper limit approved by the shareholders' meeting and the estimated amount at the beginning of the year[70](index=70&type=chunk) - The rationality of related party transactions lies in Angang Group being part of the company's supply chain, providing raw materials, auxiliary materials, energy, and technical services, while the company also sells products and services to Angang Group[71](index=71&type=chunk) [2. Related Party Transactions Involving Asset or Equity Acquisitions/Disposals](index=32&type=section&id=2.%20Related%20Party%20Transactions%20Involving%20Asset%20or%20Equity%20Acquisitions%2FDisposals) The company did not engage in related party transactions involving asset or equity acquisitions/disposals during the reporting period - The company did not engage in related party transactions involving asset or equity acquisitions/disposals during the reporting period[72](index=72&type=chunk) [3. Related Party Transactions Involving Joint External Investments](index=33&type=section&id=3.%20Related%20Party%20Transactions%20Involving%20Joint%20External%20Investments) The company jointly invested with related parties in Green Gold (Benxi) Renewable Resources Co., Ltd. and Angang Energy Technology Co., Ltd., focusing on renewable resource processing and energy technology businesses Related Party Transactions Involving Joint External Investments (H1 2025) | Joint Investor | Relationship | Invested Enterprise Name | Main Business | Registered Capital (RMB million) | Total Assets (RMB million) | Net Assets (RMB million) | Net Profit (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Angang Green Gold Industry Development Co., Ltd., Benxi Steel Plate Co., Ltd. | Under control of the same controlling shareholder | Green Gold (Benxi) Renewable Resources Co., Ltd. | Renewable resource processing, sales, recycling | 60 | 142 | 61 | 1 | | Angang Steel Co., Ltd., Angang Group Engineering Technology Development Co., Ltd. | Under control of the same controlling shareholder | Angang Energy Technology Co., Ltd. | Wholesale and retail of compressed and liquefied gases; urban civil, public, industrial centralized heating and heat supply, etc. | 201 | 477 | 370 | 21 | [4. Related Party Debt and Credit Transactions](index=33&type=section&id=4.%20Related%20Party%20Debt%20and%20Credit%20Transactions) The company had no non-operating related party debt and credit transactions during the reporting period - The company had no non-operating related party debt and credit transactions during the reporting period[74](index=74&type=chunk) [5. Transactions with Related Financial Companies](index=34&type=section&id=5.%20Transactions%20with%20Related%20Financial%20Companies) The company has deposit and loan business dealings with Angang Finance Company, with period-end deposit balances of RMB 2,941 million and loan balances of RMB 315 million Deposit Business Transactions with Angang Finance Company (H1 2025) | Related Party | Relationship | Maximum Daily Deposit Limit (RMB million) | Deposit Interest Rate Range (%) | Beginning Balance (RMB million) | Total Deposits for the Period (RMB million) | Total Withdrawals for the Period (RMB million) | Ending Balance (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Angang Finance Company | Under control of the same controlling shareholder | 5,000 | 0.2-0.65 | 4,006 | 175,134 | 176,199 | 2,941 | Loan Business Transactions with Angang Finance Company (H1 2025) | Related Party | Relationship | Loan Limit (RMB million) | Loan Interest Rate Range (%) | Beginning Balance (RMB million) | Total Loans for the Period (RMB million) | Total Repayments for the Period (RMB million) | Ending Balance (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Angang Finance Company | Under control of the same controlling shareholder | 1,500 | 2.11 | – | 315 | – | 315 | [6. Transactions of Financial Companies Controlled by the Company with Related Parties](index=35&type=section&id=6.%20Transactions%20of%20Financial%20Companies%20Controlled%20by%20the%20Company%20with%20Related%20Parties) The company had no transactions of controlled financial companies with related parties during the reporting period - The company had no transactions of controlled financial companies with related parties during the reporting period[78](index=78&type=chunk) [7. Other Significant Related Party Transactions](index=35&type=section&id=7.%20Other%20Significant%20Related%20Party%20Transactions) The company had no other significant related party transactions during the reporting period - The company had no other significant related party transactions during the reporting period[79](index=79&type=chunk) [(IV) Significant Contracts and Their Performance](index=35&type=section&id=%28IV%29%20Significant%20Contracts%20and%20Their%20Performance) This section discloses the company's significant contract performance during the reporting period, primarily involving asset and business entrustment management service agreements and land leases with Anshan Iron and Steel, with no major guarantees, wealth management, or other significant contracts [1. Entrustment, Contracting, and Leasing Matters](index=35&type=section&id=1.%20Entrustment%2C%20Contracting%2C%20and%20Leasing%20Matters) The company signed asset and business entrustment management service agreements with Anshan Iron and Steel and leased some of its land assets for production and operations, paying RMB 32 million in rent during H1 [(1) Entrustment Situation](index=35&type=section&id=%281%29%20Entrustment%20Situation) The company signed an "Asset and Business Entrustment Management Service Agreement" with Anshan Iron and Steel, entrusting the management of its unlisted units' assets, businesses, and future new assets and expanded businesses; no entrusted project's profit/loss reached 10% of the company's total profit during the reporting period - The company signed an "Asset and Business Entrustment Management Service Agreement" with Anshan Iron and Steel, entrusting the management of its unlisted units' assets, businesses, and future new assets and expanded businesses[81](index=81&type=chunk) - During the reporting period, no entrusted project's profit or loss reached **10%** or more of the company's total profit for the reporting period[81](index=81&type=chunk) [(2) Contracting Situation](index=35&type=section&id=%282%29%20Contracting%20Situation) The company had no contracting situations during the reporting period - The company had no contracting situations during the reporting period[82](index=82&type=chunk) [(3) Leasing Situation](index=36&type=section&id=%283%29%20Leasing%20Situation) The company leased some land assets from Anshan Iron and Steel and its subsidiaries for production and operations, paying RMB 32 million in rent in H1 2025, with no leasing matters' profit/loss reaching 10% of total profit - The company uses some land assets from Anshan Iron and Steel and its subsidiaries for its production and operations, paying a total of **RMB 32 million** in rent in H1 2025[84](index=84&type=chunk) - During the reporting period, no leasing matter's profit or loss reached **10%** or more of the company's total profit for the reporting period[84](index=84&type=chunk) [2. Significant Guarantees](index=36&type=section&id=2.%20Significant%20Guarantees) The company had no significant guarantees during the reporting period - The company had no significant guarantees during the reporting period[85](index=85&type=chunk) [3. Wealth Management](index=36&type=section&id=3.%20Wealth%20Management) The company had no wealth management activities during the reporting period - The company had no wealth management activities during the reporting period[86](index=86&type=chunk) [4. Other Significant Contracts](index=37&type=section&id=4.%20Other%20Significant%20Contracts) The company had no other significant contracts during the reporting period - The company had no other significant contracts during the reporting period[87](index=87&type=chunk) [IV. Corporate Governance](index=37&type=section&id=IV.%20Corporate%20Governance) The company adheres to corporate governance regulations, establishing a sound system and effective internal controls, and consistently reviews and improves its governance practices - The company strictly complies with the "Company Law", "Securities Law", and the requirements of the China Securities Regulatory Commission and Hong Kong Stock Exchange Listing Rules, establishing a sound corporate governance system and effective internal control system[88](index=88&type=chunk) - The company is committed to improving its corporate governance level, regularly reviewing corporate governance practices, and has largely complied with the Corporate Governance Code for the six months ended June 30, 2025[89](index=89&type=chunk) [V. Financial Information](index=38&type=section&id=V.%20Financial%20Information) This section provides detailed financial information, including the consolidated balance sheet, consolidated income statement, and comprehensive notes to the financial statements [Consolidated Balance Sheet](index=38&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's total assets were RMB 98,421 million, slightly down from the prior year-end, with total current liabilities of RMB 45,436 million, non-current liabilities of RMB 5,340 million, and equity attributable to parent company shareholders of RMB 46,610 million Consolidated Balance Sheet Key Data (June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | **Total Current Assets** | **26,600** | **28,250** | | Cash and Bank Balances | 3,134 | 4,544 | | Trading Financial Assets | 16 | 15 | | Derivative Financial Assets | 4 | | | Notes Receivable | 235 | 55 | | Accounts Receivable | 2,711 | 2,952 | | Accounts Receivable Financing | 1,809 | 918 | | Inventories | 13,853 | 14,769 | | **Total Non-Current Assets** | **71,821** | **72,328** | | Long-Term Equity Investments | 3,804 | 3,840 | | Fixed Assets | 52,714 | 51,842 | | Construction in Progress | 4,806 | 5,802 | | **Total Assets** | **98,421** | **100,578** | | **Total Current Liabilities** | **45,436** | **39,439** | | Short-Term Borrowings | 7,749 | 1,174 | | Derivative Financial Liabilities | 22 | 1 | | Notes Payable | 17,609 | 17,957 | | Accounts Payable | 6,904 | 8,281 | | Contract Liabilities | 4,917 | 4,557 | | Non-Current Liabilities Due Within One Year | 1,574 | 700 | | **Total Non-Current Liabilities** | **5,340** | **12,468** | | Long-Term Borrowings | 3,880 | 10,991 | | **Total Liabilities** | **50,776** | **51,907** | | **Total Equity Attributable to Parent Company Shareholders** | **46,610** | **47,679** | | **Total Shareholders' Equity** | **47,645** | **48,671** | [Consolidated Income Statement](index=42&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the company reported total operating revenue of RMB 48,599 million, total operating costs of RMB 49,956 million, a net loss of RMB 1,114 million, and a net loss attributable to parent company owners of RMB 1,144 million, with basic earnings per share of RMB -0.122 Consolidated Income Statement Key Data (H1 2025 vs Prior Period) | Item | Current Period (RMB million) | Prior Period (RMB million) | | :--- | :--- | :--- | | **I. Total Operating Revenue** | **48,599** | **55,449** | | Operating Revenue | 48,599 | 55,449 | | **II. Total Operating Costs** | **49,956** | **58,177** | | Operating Cost | 48,283 | 56,533 | | Selling Expenses | 231 | 267 | | Administrative Expenses | 486 | 648 | | Research and Development Expenses | 259 | 191 | | Financial Expenses | 170 | 120 | | Add: Other Income | 146 | 65 | | Investment Income | 218 | 253 | | Fair Value Change Gains/Losses | -12 | 34 | | Asset Impairment Losses | -81 | -205 | | **III. Operating Profit** | **-1,086** | **-2,549** | | Add: Non-Operating Income | 21 | 7 | | Less: Non-Operating Expenses | 4 | 81 | | **IV. Total Profit** | **-1,069** | **-2,623** | | Less: Income Tax Expense | 45 | 50 | | **V. Net Profit** | **-1,114** | **-2,673** | | Net Profit Attributable to Parent Company Owners | -1,144 | -2,689 | | Minority Shareholders' Profit/Loss | 30 | 16 | | **VII. Total Comprehensive Income** | **-1,106** | **-2,657** | | Total Comprehensive Income Attributable to Parent Company Shareholders | -1,136 | -2,673 | | **VIII. Earnings Per Share** | | | | Basic Earnings Per Share (Yuan/share) | -0.122 | -0.287 | | Diluted Earnings Per Share (Yuan/share) | -0.122 | -0.287 | [Notes to Financial Statements](index=45&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed notes to the financial statements, covering basis of preparation, accounts receivable, accounts payable, retained earnings, operating revenue and cost, taxes and surcharges, depreciation and amortization, financial expenses, income tax expense, return on net assets and earnings per share, segment information, commitments, events after the balance sheet date, net current assets, and total assets less current liabilities [1. Basis of Preparation of Financial Statements](index=45&type=section&id=1.%20Basis%20of%20Preparation%20of%20Financial%20Statements) The Group's financial statements are prepared under the going concern assumption, in accordance with Accounting Standards for Business Enterprises and disclosure requirements of the CSRC and HKEX Listing Rules, using accrual basis and historical cost - The Group assessed its ability to continue as a going concern for the 12 months from **June 30, 2025**, and found no significant doubts[99](index=99&type=chunk) - The financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises" and applicable disclosure provisions of the China Securities Regulatory Commission and the Hong Kong Stock Exchange Listing Rules, on an accrual basis, and measured at historical cost, except for certain financial instruments[100](index=100&type=chunk) [2. Accounts Receivable](index=46&type=section&id=2.%20Accounts%20Receivable) As of June 30, 2025, the company's accounts receivable had a book value of RMB 2,711 million, with total bad debt provisions of RMB 402 million, primarily comprising receivables within one year and a high concentration among the top five debtors Accounts Receivable Classification Disclosure (June 30, 2025) | Category | Book Balance (RMB million) | Proportion (%) | Bad Debt Provision (RMB million) | Provision Rate (%) | Book Value (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable for which Bad Debt Provision is Made Individually | 453 | 14.55 | 398 | 87.86 | 55 | | Accounts Receivable for which Bad Debt Provision is Made by Portfolio | 2,660 | 85.45 | 4 | 0.15 | 2,656 | | Of which: Risk-Free Portfolio | 1,444 | 46.39 | | | 1,444 | | Aging Risk Matrix Portfolio | 1,216 | 39.06 | 4 | 0.33 | 1,212 | | **Total** | **3,113** | **100.00** | **402** | **12.91** | **2,711** | Accounts Receivable by Aging (June 30, 2025) | Aging | June 30, 2025 (RMB million) | | :--- | :--- | | Within 1 year | 2,588 | | 1-2 years | 72 | | 2-3 years | 2 | | 3-4 years | 2 | | Over 5 years | 449 | | **Total** | **3,113** | - The aggregated amount of the top five accounts receivable by debtor as of **June 30, 2025**, was **RMB 1,863 million**, accounting for **59.85%** of the total accounts receivable balance[106](index=106&type=chunk) - During the current period, accounts receivable of **RMB 985 million** were transferred without recourse, incurring related derecognition expenses of **RMB 4 million**[107](index=107&type=chunk) [3. Accounts Payable](index=49&type=section&id=3.%20Accounts%20Payable) As of June 30, 2025, the company's total accounts payable were RMB 6,904 million, with 98.99% due within one year, and a significant amount of RMB 5 million owed to Angang Construction Group Co., Ltd. for over one year Accounts Payable by Aging (June 30, 2025) | Item | Amount (RMB million) | Proportion (%) | | :--- | :--- | :--- | | Within 1 year | 6,834 | 98.99 | | 1-2 years | 27 | 0.39 | | 2-3 years | 7 | 0.10 | | Over 3 years | 36 | 0.52 | | **Total** | **6,904** | **100.00** | - Significant accounts payable with an aging of over 1 year include **RMB 5 million** to Angang Construction Group Co., Ltd[109](index=109&type=chunk) [4. Retained Earnings](index=50&type=section&id=4.%20Retained%20Earnings) As of June 30, 2025, the company's retained earnings were RMB -1,465 million, primarily influenced by the net loss transferred in the current period Retained Earnings Changes (H1 2025) | Item | Current Period (RMB million) | | :--- | :--- | | December 31, 2024 | -321 | | January 1, 2025 | -321 | | Increase for the Period | -1,144 | | Of which: Net Profit Transferred for the Period | -1,144 | | **June 30, 2025** | **-1,465** | [5. Operating Revenue and Operating Cost](index=50&type=section&id=5.%20Operating%20Revenue%20and%20Operating%20Cost) In H1 2025, the company's operating revenue was RMB 48,599 million and operating cost was RMB 48,283 million, with the main business being steel product production and sales, primarily from Mainland China Operating Revenue and Operating Cost by Product Content (H1 2025) | Item | Revenue (RMB million) | Cost (RMB million) | | :--- | :--- | :--- | | Main Business | 48,391 | 48,096 | | Other Businesses | 208 | 187 | | **Total** | **48,599** | **48,283** | Operating Revenue by Region (H1 2025) | Item | Current Period (RMB million) | | :--- | :--- | | External Transaction Revenue from Mainland China | 45,158 | | External Transaction Revenue from Overseas | 3,441 | | **Total** | **48,599** | - The Group is divided into one operating segment based on business type: production and sales of steel products[112](index=112&type=chunk) [6. Taxes and Surcharges](index=51&type=section&id=6.%20Taxes%20and%20Surcharges) In H1 2025, the company's total taxes and surcharges amounted to RMB 527 million, primarily comprising land use tax, environmental protection tax, and property tax Taxes and Surcharges Composition (H1 2025) | Item | Current Period (RMB million) | Prior Period (RMB million) | | :--- | :--- | :--- | | Land Use Tax | 219 | 220 | | Environmental Protection Tax | 112 | 35 | | Property Tax | 91 | 86 | | Stamp Duty | 53 | 59 | | Urban Maintenance and Construction Tax | 18 | 9 | | Resource Tax | 15 | 1 | | Education Surcharge | 13 | 7 | | Consumption Tax | 5 | | | Other | 1 | 1 | | **Total** | **527** | **418** | [7. Depreciation and Amortization](index=52&type=section&id=7.%20Depreciation%20and%20Amortization) In H1 2025, the company's total depreciation and amortization amounted to RMB 2,164 million, with fixed asset depreciation constituting the major portion Depreciation and Amortization Composition (H1 2025) | Item | Current Period (RMB million) | Prior Period (RMB million) | | :--- | :--- | :--- | | Fixed Asset Depreciation | 1,907 | 1,802 | | Intangible Asset Amortization | 225 | 203 | | Right-of-Use Asset Depreciation | 32 | 31 | | **Total** | **2,164** | **2,036** | [8. Financial Expenses](index=52&type=section&id=8.%20Financial%20Expenses) In H1 2025, the company's total financial expenses were RMB 170 million, primarily driven by interest expenses, with a significant increase in interest expenses for long-term borrowings and bonds Financial Expenses Composition (H1 2025) | Item | Current Period (RMB million) | Prior Period (RMB million) | | :--- | :--- | :--- | | Interest Expense | 185 | 136 | | Of which: Interest Expense on Long-Term Borrowings and Bonds | 145 | 69 | | Interest Expense on Short-Term Borrowings and Letters of Credit | 33 | 38 | | Other Interest Expenses | 7 | 29 | | Less: Interest Income | 26 | 26 | | Less: Capitalized Interest Amount | 3 | 9 | | Other | 14 | 19 | | **Total** | **170** | **120** | [9. Income Tax Expense](index=52&type=section&id=9.%20Income%20Tax%20Expense) In H1 2025, the company's income tax expense was RMB 45 million, mainly composed of current income tax expense and deferred income tax adjustments Income Tax Expense Table (H1 2025) | Item | Current Period (RMB million) | Prior Period (RMB million) | | :--- | :--- | :--- | | Current Income Tax Expense | 38 | 34 | | Deferred Income Tax Adjustment | 7 | 16 | | **Total** | **45** | **50** | Reconciliation of Accounting Profit to Income Tax Expense (H1 2025) | Item | Current Period (RMB million) | | :--- | :--- | | Total Profit | -1,069 | | Income Tax Expense Calculated at Statutory/Applicable Tax Rate | -160 | | Impact of Different Tax Rates Applicable to Subsidiaries | -3 | | Impact of Deductible Temporary Differences or Deductible Losses for which Deferred Income Tax Assets were Not Recognized in the Current Period | 208 | | **Income Tax Expense** | **45** | [10. Return on Net Assets and Earnings Per Share](index=53&type=section&id=10.%20Return%20on%20Net%20Assets%20and%20Earnings%20Per%20Share) In H1 2025, the company's weighted average return on net assets attributable to ordinary shareholders was -2.43%, with basic and diluted earnings per share both at -0.122 Yuan/share Return on Net Assets and Earnings Per Share (H1 2025) | Item | Weighted Average Return on Net Assets (%) | Earnings Per Share (RMB Yuan/share) - Basic | Earnings Per Share (RMB Yuan/share) - Diluted | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Company | -2.43 | -0.122 | -0.122 | | Net Profit Attributable to Ordinary Shareholders Excluding Non-Recurring Gains and Losses | -2.61 | -0.131 | -0.131 | [11. Segment Information](index=53&type=section&id=11.%20Segment%20Information) The Group is divided into one operating segment based on business type: production and sales of steel products - The Group is divided into one operating segment based on business type: production and sales of steel products[117](index=117&type=chunk) [12. Commitments](index=54&type=section&id=12.%20Commitments) As of June 30, 2025, the company's total commitments amounted to RMB 2,502 million, primarily for construction and renovation contracts signed but not yet performed or fully performed Commitments (June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | External Investment Contracts Signed but Not Yet Performed or Fully Performed | 14 | 126 | | Construction and Renovation Contracts Signed but Not Yet Performed or Fully Performed | 2,488 | 2,439 | | **Total** | **2,502** | **2,565** | [13. Events After the Balance Sheet Date](index=54&type=section&id=13.%20Events%20After%20the%20Balance%20Sheet%20Date) As of June 30, 2025, the Group had no events after the balance sheet date requiring disclosure - As of **June 30, 2025**, the Group had no events after the balance sheet date requiring disclosure[120](index=120&type=chunk) [14. Net Current Assets](index=54&type=section&id=14.%20Net%20Current%20Assets) As of June 30, 2025, the company's net current assets were RMB -18,836 million, a further deterioration from RMB -11,189 million at the end of the prior year Net Current Assets (June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Current Assets | 26,600 | 28,250 | | Less: Current Liabilities | 45,436 | 39,439 | | **Net Current Assets/(Liabilities)** | **-18,836** | **-11,189** | [15. Total Assets Less Current Liabilities](index=55&type=section&id=15.%20Total%20Assets%20Less%20Current%20Liabilities) As of June 30, 2025, the company's total assets less current liabilities amounted to RMB 52,985 million, a decrease from RMB 61,139 million at the end of the prior year Total Assets Less Current Liabilities (June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Assets | 98,421 | 100,578 | | Less: Current Liabilities | 45,436 | 39,439 | | **Total Assets Less Current Liabilities** | **52,985** | **61,139** |