[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company reported a slight revenue decrease and gross profit increase, but experienced a significant shift from profit to loss for the period and adjusted net loss Financial Highlights for the Six Months Ended June 30, 2025 (RMB '000) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 66,360 | 66,974 | -0.9 | | Gross Profit | 43,709 | 42,316 | 3.3 | | Loss/(Profit) for the Period | (1,769) | 4,328 | -140.9 | | Adjusted Net Loss/(Profit) | (1,769) | 4,328 | -140.9 | - Adjusted net profit is defined as profit for the period plus share-based compensation expenses (post-IPO restricted share unit scheme expenses); for the six months ended June 30, 2025, these compensation expenses were **zero**[2](index=2&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue slightly decreased, but gross profit increased; however, a shift from profit to loss occurred due to reduced other income, increased impairment losses, and positive income tax expense Key Profit or Loss Statement Data (RMB '000) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 66,360 | 66,974 | | Cost of Sales | (22,651) | (24,658) | | Gross Profit | 43,709 | 42,316 | | Other Income and Gains | 3,739 | 8,199 | | Selling and Distribution Expenses | (29,527) | (29,410) | | Administrative Expenses | (9,747) | (11,217) | | Research and Development Expenses | (6,774) | (6,042) | | Impairment Loss on Financial and Contract Assets | (1,156) | (8) | | Finance Costs | (107) | (128) | | Profit Before Tax | 84 | 3,708 | | Income Tax Expense/(Credit) | (1,853) | 620 | | Loss/(Profit) for the Period | (1,769) | 4,328 | | Loss/(Profit) Attributable to Owners of the Parent | (1,783) | 4,525 | | Basic Loss/Earnings Per Share | RMB (0.002) | RMB 0.004 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%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's total comprehensive income for the period aligned with the loss for the period at RMB (1,769) thousand, a significant decrease from the RMB 4,328 thousand comprehensive income in the prior year Key Comprehensive Income Statement Data (RMB '000) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss/(Profit) for the Period | (1,769) | 4,328 | | Total Comprehensive Income for the Period | (1,769) | 4,328 | | Attributable to Owners of the Parent | (1,783) | 4,525 | | Attributable to Non-Controlling Interests | 14 | (197) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total non-current assets decreased while total current assets slightly increased, driven by significant growth in financial assets at fair value through profit or loss and cash and cash equivalents, leading to improved liquidity through reduced current liabilities and enhanced net current assets Key Financial Position Statement Data (RMB '000) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-Current Assets | 53,575 | 66,700 | | Total Current Assets | 559,882 | 556,052 | | Total Current Liabilities | 77,565 | 84,166 | | Net Current Assets | 482,317 | 471,886 | | Total Assets Less Current Liabilities | 535,892 | 538,586 | | Total Non-Current Liabilities | 3,790 | 4,715 | | Net Assets | 532,102 | 533,871 | | Total Equity | 532,102 | 533,871 | - Among current assets, financial assets at fair value through profit or loss significantly increased from **RMB 10,240 thousand** as of December 31, 2024, to **RMB 76,538 thousand** as of June 30, 2025[6](index=6&type=chunk) - Cash and cash equivalents increased from **RMB 209,104 thousand** as of December 31, 2024, to **RMB 280,757 thousand** as of June 30, 2025[6](index=6&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [Basis of Presentation](index=6&type=section&id=%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the annual financial statements for the year ended December 31, 2024, as it does not include all disclosures required for annual financial statements - The financial information is prepared in accordance with **HKAS 34 "Interim Financial Reporting"**[8](index=8&type=chunk) [Changes in Accounting Policies and Disclosures](index=6&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E8%AE%8A%E5%8B%95) The accounting policies used to prepare the interim financial information are consistent with the 2024 annual consolidated financial statements, with the only new adoption being the revised HKAS 21, which had no material impact due to the group's transactional currency convertibility - The revised **HKAS 21 "Lack of Exchangeability"** was adopted for the first time, but it had no impact on the interim condensed consolidated financial information as the Group's transactional currencies are convertible[9](index=9&type=chunk)[10](index=10&type=chunk) [Operating Segment Information](index=6&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The chief operating decision maker reviews the financial results of the group as a whole, without separate operating segment financial information, and no geographical segment information is presented as all revenue and non-current assets are located in Mainland China; during the reporting period, Customer A and Customer B became major clients, while Customer C no longer accounted for over 10% of revenue - The chief operating decision maker reviews the Group's financial performance as a whole, and no separate operating segment information is presented[11](index=11&type=chunk) - All revenue and non-current assets are located in Mainland China, thus no geographical segment information is presented[12](index=12&type=chunk) Customers Accounting for Over 10% of Revenue (RMB '000) | Customer | 2025 | 2024 | | :--- | :--- | :--- | | Customer A | 11,771 | Not Applicable | | Customer B | 7,841 | Not Applicable | | Customer C | Not Applicable | 11,029 | [Revenue](index=7&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the Group's total revenue was RMB 66,360 thousand, with online advertising services accounting for the vast majority and recognized over time, while integrated marketing services revenue significantly decreased Disaggregated Revenue Information (RMB '000) | Revenue Stream | 2025 | 2024 | | :--- | :--- | :--- | | Online Advertising Services | 64,494 | 55,945 | | Integrated Marketing Services | 1,866 | 11,029 | | Total | 66,360 | 66,974 | - Revenue from online advertising services is primarily recognized **over time**, while integrated marketing services revenue is recognized at a **point in time** when services are transferred[15](index=15&type=chunk) - Online advertising services revenue is recognized when advertisements are published over a specified display period, with payments typically due within **30 to 180 days** after the billing date[17](index=17&type=chunk) - Performance obligations for integrated marketing services are satisfied upon completion of marketing activities and client confirmation, with payments typically due within **90 days** after the billing date[18](index=18&type=chunk) [Profit Before Tax](index=8&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) For the six months ended June 30, 2025, the Group's profit before tax significantly decreased to RMB 84 thousand, primarily due to reduced employee benefit expenses, increased R&D expenses, impairment of other receivables, and lower bank interest income Components of Profit Before Tax (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of Services Provided | 22,651 | 24,658 | | Employee Benefit Expenses | 22,248 | 26,836 | | Depreciation of Property, Plant and Equipment | 1,093 | 944 | | Amortization of Intangible Assets | 481 | 829 | | Research and Development Expenses | 6,774 | 6,042 | | Net Exchange Difference | 1,356 | (1,343) | | Reversal of Impairment Loss on Trade Receivables | (1,332) | (40) | | Impairment of Other Receivables | 2,499 | – | | Bank Interest Income | (5,142) | (5,938) | [Income Tax](index=8&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) The Group pays income tax at local rates in different jurisdictions, with Chinese subsidiaries enjoying a 15% preferential tax rate for high-tech enterprises and others paying at a 25% statutory rate; income tax expense significantly increased during the reporting period, mainly due to government tax refunds in the prior year - Entities in the Cayman Islands and British Virgin Islands are **exempt from income tax**[21](index=21&type=chunk)[22](index=22&type=chunk) - Hong Kong profits tax rate is **16.5%**, with some eligible subsidiaries paying **8.25%** on the first HKD 2,000,000 of assessable profits[23](index=23&type=chunk) - Chinese high-tech enterprise subsidiaries enjoy a **15% preferential corporate income tax rate**, while other Chinese subsidiaries pay at a **25% statutory tax rate**[24](index=24&type=chunk) Components of Income Tax Expense (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current - China Expense for the Period | 1,400 | 499 | | Under/(Over) Provision in Prior Years | 469 | (933) | | Deferred | (16) | (186) | | Total Tax Expense/(Credit) for the Period | 1,853 | (620) | [Dividends](index=9&type=section&id=%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[26](index=26&type=chunk) [Loss/Earnings Per Share Attributable to Owners of the Parent](index=9&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, the company's basic and diluted loss per share were both RMB (0.002), compared to earnings per share of RMB 0.004 in the prior year, reflecting a shift from profit to loss Loss/Earnings Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic Loss/Profit Per Share | RMB (0.002) | RMB 0.004 | | Diluted Loss/Profit Per Share | RMB (0.002) | RMB 0.004 | - Basic earnings per share are calculated based on the profit for the period attributable to owners of the parent and the weighted average number of ordinary shares outstanding during the period[27](index=27&type=chunk) - The Group had **no potentially dilutive ordinary shares** outstanding for the six months ended June 30, 2025, and 2024[28](index=28&type=chunk) [Trade and Bills Receivables](index=10&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills receivables amounted to RMB 66,187 thousand, a decrease from December 31, 2024; the Group generally offers a 180-day credit period and maintains strict control over outstanding receivables, with no significant concentration of credit risk Trade and Bills Receivables (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables | 61,937 | 82,155 | | Bills Receivable | 4,250 | 4,461 | | Total | 66,187 | 86,616 | - The credit period generally ranges up to **180 days**, and the Group maintains strict control over outstanding receivables with **no significant concentration of credit risk**[29](index=29&type=chunk) Ageing Analysis of Trade Receivables (RMB '000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 12,054 | 34,583 | | 31 to 90 days | 25,152 | 12,561 | | 91 to 180 days | 14,510 | 14,207 | | 181 to 365 days | 7,049 | 17,725 | | Over 1 year | 18,043 | 19,282 | | Total (Unimpaired) | 76,808 | 98,358 | | Impairment | (14,871) | (16,203) | | Total (Impaired) | 61,937 | 82,155 | [Trade and Bills Payables](index=11&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills payables amounted to RMB 11,930 thousand, a significant decrease from December 31, 2024; trade payables are typically settled within 90 days and are non-interest bearing Ageing Analysis of Trade and Bills Payables (RMB '000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 11,867 | 6,142 | | 3 to 6 months | – | 14,769 | | 6 months to 1 year | 63 | – | | Total | 11,930 | 20,911 | - Trade payables are **non-interest bearing** and typically settled on **90-day terms**[31](index=31&type=chunk) - Bills payable have a maturity period of **six months**[32](index=32&type=chunk) [Share Capital](index=11&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged at RMB 1,000 thousand and RMB 840 thousand, respectively Share Capital Composition (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized Share Capital | 1,000 | 1,000 | | Issued and Fully Paid Share Capital | 840 | 840 | - The number of issued shares is **1,234,600,000 ordinary shares** with a par value of **USD 0.0001 per share**[33](index=33&type=chunk) [Commitments](index=11&type=section&id=%E6%89%BF%E6%93%94) As of the end of the reporting period, the Group had no capital commitments - As of the end of the reporting period, the Group had **no capital commitments**[33](index=33&type=chunk) [Approval of Financial Statements](index=11&type=section&id=%E6%89%B9%E5%87%86%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Board of Directors approved and authorized the publication of these interim condensed consolidated financial statements on August 26, 2025 - The Board of Directors approved and authorized the publication of the interim condensed consolidated financial statements on **August 26, 2025**[33](index=33&type=chunk) [Business Review and Outlook](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) [Market Overview](index=12&type=section&id=%E5%B8%82%E5%A0%B4%E6%A6%82%E8%A7%88) In the first half of 2025, China's automotive industry achieved resilient growth amidst price competition and intelligent technology development, with passenger vehicle sales increasing by 10.8% year-on-year and new energy vehicle penetration exceeding 50% for the first time, while the AI marketing market is projected to reach RMB 66.9 billion with a 26.2% CAGR, and the automotive AI marketing segment is expected to surpass RMB 12 billion - National passenger vehicle sales reached **15.72 million units** in the first half of 2025, a year-on-year increase of approximately **10.8%**[34](index=34&type=chunk) - The market penetration rate of new energy vehicles exceeded **50%** for the first time[34](index=34&type=chunk) - From January to May 2025, the automotive industry's profit decreased by **11.9%** year-on-year, prompting a shift towards "value competition" and AI technology upgrades[34](index=34&type=chunk) - The total size of China's AI marketing market is projected to reach **RMB 66.9 billion** in 2025, with a compound annual growth rate of **26.2%**[34](index=34&type=chunk) - AI applications in the automotive vertical account for **15% to 18%** of the overall AI marketing market, with an estimated scale exceeding **RMB 12 billion** in 2025[34](index=34&type=chunk) - The online penetration rate of the automotive advertising market exceeded **55%** in the first half of 2025, projected to rise to **58.6%** for the full year[35](index=35&type=chunk) [Group Overview](index=12&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E6%A6%82%E8%A7%88) Established in 2015, the Group is a leading automotive information and digital marketing service provider in China, committed to offering full-scenario marketing solutions through a "content + technology + ecosystem" model; in February 2025, it rebranded as AI X Tech Inc., signaling a strategic upgrade to an AI-driven technology platform focusing on "intelligent technology empowerment, ecosystem value reconstruction" - The Group was established in **September 2015** and listed on the Main Board of the Stock Exchange in **January 2020**[36](index=36&type=chunk) - The Group has become a leading automotive information and digital marketing service provider in China, offering full-scenario marketing solutions through a **"content + technology + ecosystem" model**[36](index=36&type=chunk) - In **February 2025**, the English name was officially changed to AI X Tech Inc., fully upgrading to an **AI-driven technology platform**[36](index=36&type=chunk) - Accelerating the implementation of three core strategies: **AI technology breakthroughs, deepening content matrix, and synergistic development in lower-tier markets**[36](index=36&type=chunk)[40](index=40&type=chunk) [Business Overview](index=13&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, the Group's operating revenue slightly decreased by 0.9% to RMB 66.4 million, while online advertising services revenue grew by 15.3%; gross profit increased by 3.3% to RMB 43.7 million, but the period saw a loss of RMB 1.8 million, primarily due to surging R&D investments in AI platforms and virtual interaction technologies during strategic transformation - Operating revenue was approximately **RMB 66.4 million**, a year-on-year decrease of approximately **0.9%**[38](index=38&type=chunk) - Online advertising services revenue was approximately **RMB 64.5 million**, a year-on-year increase of approximately **15.3%**[38](index=38&type=chunk) - Gross profit was approximately **RMB 43.7 million**, a year-on-year increase of approximately **3.3%**[38](index=38&type=chunk) - Loss for the period was approximately **RMB 1.8 million**, primarily due to surging R&D investments in AI platforms and virtual interaction technologies during the strategic transformation period, focusing on platform technology upgrades and ecosystem reconstruction[38](index=38&type=chunk) [Key Business Milestones](index=13&type=section&id=%E6%A5%AD%E5%8B%99%E9%87%8D%E8%A6%81%E9%87%8C%E7%A8%8B%E7%A2%91) The Group continues to consolidate its leading position in vertical sectors, deepen its "technology + content" dual-engine strategy, expand its user base, and fully implement its self-developed AIGC product "AI X," driving the company's transformation into an "AI + ecosystem marketing technology platform" - Continuously deepening the **"technology + content" dual-engine strategy**, building a comprehensive content system through an upgraded full-scenario media matrix, and precisely reaching users with intelligent distribution technology[39](index=39&type=chunk) - Fully launched the self-developed AIGC product **"AI X,"** with core capabilities including diverse content generation, intelligent distribution, precise efficiency control, and data-driven empowerment[41](index=41&type=chunk) - The **"AI X" distribution system** was fully operational in 2025, driving the Group's transformation from a "vertical media service provider" to an **"AI + ecosystem marketing technology platform"**[41](index=41&type=chunk) [Outlook](index=14&type=section&id=%E5%B1%95%E6%9C%9B) In the second half of 2025, the Group will continue to implement its "AI-native driven, ecosystem-wide leap" strategy, reshape its leadership in the vertical media ecosystem, increase AI R&D investment, and proactively plan for ecosystem M&A and strategic collaborations to strengthen its technological foundation and expand market reach - Reshaping vertical media ecosystem leadership: Building a **"professional evaluation + user co-creation + AI-assisted creation" three-dimensional content matrix** based on the "AI X" intelligent engine, deepening data interoperability with mainstream platforms, and achieving full-chain automation[42](index=42&type=chunk) - Increasing AI R&D investment: Systematically investing in AI technology infrastructure, with generative AI as the core engine, to upgrade the technology architecture from tool empowerment to a **"decision-making hub + ecological collaboration"**[43](index=43&type=chunk) - Proactive planning for ecosystem M&A and strategic collaborations: Focusing on technological synergy, scenario entry value, and financial stability to select targets and build a **"technology-scenario-data" closed loop**[44](index=44&type=chunk)[47](index=47&type=chunk) [Financial Review](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) [Revenue](index=15&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, total revenue was approximately RMB 66.4 million, a year-on-year decrease of 0.9%, primarily due to the Group's strategic focus on core business development and proactive scaling back of non-core operations - Total revenue was approximately **RMB 66.4 million**, a year-on-year decrease of approximately **0.9%**[44](index=44&type=chunk) - The slight revenue fluctuation primarily stemmed from a strategic focus on core businesses and the proactive scaling back of non-core operations[44](index=44&type=chunk) [Cost of Sales](index=15&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased by approximately 8.1% to RMB 22.7 million, mainly due to a strategic focus on core businesses, improved marketing efficiency, reduced cost input for non-core businesses, and refined cost control - Cost of sales was approximately **RMB 22.7 million**, a year-on-year decrease of approximately **8.1%**[45](index=45&type=chunk) - The reduction in cost of sales was primarily attributed to a strategic focus on core businesses, improved marketing efficiency, reduced costs for non-core businesses, and refined cost control[45](index=45&type=chunk) [Gross Profit and Gross Profit Margin](index=15&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by 3.3% to RMB 43.7 million, and the gross profit margin improved from 63.2% to 65.9%, primarily due to the Group's firm focus on high-margin core businesses and optimization of product and customer structures - Gross profit was approximately **RMB 43.7 million**, a year-on-year increase of approximately **3.3%**[46](index=46&type=chunk) - Gross profit margin increased from **63.2% to 65.9%**[46](index=46&type=chunk) - The increase in both gross profit and gross profit margin was due to a focus on high-margin core businesses and optimization of product and customer structures[46](index=46&type=chunk) [Other Income and Gains](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains decreased by 54.4% to RMB 3.7 million, primarily affected by foreign exchange market fluctuations and a reduction in wealth management income due to general market interest rate cuts - Other income and gains were approximately **RMB 3.7 million**, a year-on-year decrease of approximately **54.4%**[48](index=48&type=chunk) - The change was primarily affected by foreign exchange market fluctuations and a general decrease in wealth management income due to market benchmark interest rate reductions[48](index=48&type=chunk) [Selling and Distribution Expenses](index=16&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E6%94%AF%E5%87%BA) Selling and distribution expenses were approximately RMB 29.5 million, a slight year-on-year increase of 0.4%, remaining largely consistent with the prior year - Selling and distribution expenses were approximately **RMB 29.5 million**, a year-on-year increase of approximately **0.4%**, remaining largely stable[49](index=49&type=chunk) [Administrative Expenses](index=16&type=section&id=%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) Administrative expenses decreased by 13.1% to RMB 9.7 million, primarily due to organizational structure optimization and improved operational efficiency from digital transformation - Administrative expenses were approximately **RMB 9.7 million**, a year-on-year decrease of approximately **13.1%**[50](index=50&type=chunk) - The decrease was primarily due to overall organizational structure optimization and improved operational efficiency resulting from digital transformation initiatives[50](index=50&type=chunk) [Research and Development Expenses](index=16&type=section&id=%E7%A0%94%E7%99%BC%E8%B2%BB%E7%94%A8) Research and development expenses increased by 12.1% to RMB 6.8 million, primarily due to the Group's strategic intensification of investment in core AI marketing technologies to strengthen long-term technological barriers - Research and development expenses were approximately **RMB 6.8 million**, a year-on-year increase of approximately **12.1%**[51](index=51&type=chunk) - The increase was primarily due to strategic intensification of investment in core AI marketing technologies to strengthen long-term technological barriers[51](index=51&type=chunk) [Finance Costs](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs were approximately RMB 0.1 million, consistent with the prior year - Finance costs were approximately **RMB 0.1 million**, equivalent to the prior year[52](index=52&type=chunk) [Income Tax Expense](index=16&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense was approximately RMB 1.9 million, a significant year-on-year increase of 398.9%, primarily because the prior year benefited from government tax refunds, while the actual tax rate for the reporting period remained consistent with previous periods - Income tax expense was approximately **RMB 1.9 million**, a year-on-year increase of approximately **398.9%**[53](index=53&type=chunk) - The increase was primarily due to government tax refunds enjoyed in the prior year, with the actual tax rate for the reporting period remaining consistent with previous periods[53](index=53&type=chunk) [Loss/Profit for the Period](index=17&type=section&id=%E6%9C%9F%E5%85%A7%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E5%88%A9%E6%BD%A4) Loss attributable to owners of the Group was approximately RMB 1.8 million, a 140.9% decrease compared to a profit of RMB 4.3 million in the prior year, mainly due to reduced other income and gains and increased income tax expense - Loss attributable to owners of the Group was approximately **RMB 1.8 million**, a year-on-year decrease of approximately **140.9%**[54](index=54&type=chunk) - The loss was primarily due to reduced other income and gains and increased income tax expense[54](index=54&type=chunk) [Other Financial Information (Non-IFRS Measure): Adjusted Net Profit](index=17&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%EF%BC%88%E9%9D%9E%E3%80%8A%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E3%80%8B%E6%8C%87%E6%A8%99%EF%BC%89%EF%BC%9A%E7%B6%93%E8%AA%BF%E6%95%B4%E7%B4%94%E5%88%A9) Adjusted net profit, a non-IFRS measure, provides a clearer perspective on operating performance; for the six months ended June 30, 2025, adjusted net profit was consistent with the loss for the period, both at RMB (1,769) thousand, representing a 140.9% year-on-year decrease - Adjusted net profit is defined as profit for the period plus share-based compensation expenses[55](index=55&type=chunk) - This indicator aims to provide useful information regarding financial position and operating results but should not be considered in isolation or as a substitute for analysis under IFRS[55](index=55&type=chunk) Non-IFRS Measure Adjusted Net Profit (RMB '000) | Indicator | 2025 | Percentage of Total Revenue | 2024 | Percentage of Total Revenue | Year-on-Year Percentage Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | (1,769) | -2.7 | 4,328 | 6.5 | -140.9 | | Add back: Share-based Compensation Expenses | 0 | 0 | 0 | 0 | 0 | | Non-IFRS Measure Adjusted Net Profit | (1,769) | -2.7 | 4,328 | 6.5 | -140.9 | [Liquidity and Capital Resources](index=17&type=section&id=%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B3%87%E6%9C%AC%E4%BE%86%E6%BA%90) [Liquidity Overview](index=17&type=section&id=%E6%B5%81%E5%8B%95%E6%80%A7%E6%A6%82%E8%A7%88) As of June 30, 2025, the Group's current assets were approximately RMB 559.9 million, current liabilities were approximately RMB 77.6 million, and the current ratio improved to 7.2 times, indicating strong liquidity; cash and cash equivalents increased to RMB 280.8 million, with a gearing ratio of 15.3% - Current assets were approximately **RMB 559.9 million** (December 31, 2024: RMB 556.1 million)[58](index=58&type=chunk) - Current liabilities were approximately **RMB 77.6 million** (December 31, 2024: RMB 84.2 million)[58](index=58&type=chunk) - The current ratio improved from **6.6 times** as of December 31, 2024, to **7.2 times** as of June 30, 2025[58](index=58&type=chunk) - Cash and cash equivalents were approximately **RMB 280.8 million**, primarily from net cash generated from operating activities[59](index=59&type=chunk) - The gearing ratio was **15.3%** (December 31, 2024: 16.6%)[59](index=59&type=chunk) [Cash Flow Statement](index=18&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash generated from operating activities significantly increased to RMB 27.3 million; net cash generated from investing activities was RMB 46.2 million, mainly from the sale of time deposits; and net cash used in financing activities was RMB 0.5 million Key Cash Flow Statement Data (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 27,341 | 11,559 | | Net Cash Generated from Investing Activities | 46,188 | 13,354 | | Net Cash Used in Financing Activities | (520) | (1,200) | | Net Increase in Cash and Cash Equivalents | 73,009 | 23,713 | | Cash and Cash Equivalents at Beginning of Period | 209,104 | 369,880 | | Cash and Cash Equivalents at June 30 | 280,757 | 394,936 | - Net cash generated from operating activities was approximately **RMB 27.3 million**, primarily comprising cash generated from operations of approximately **RMB 25.0 million** and interest and income tax refunds of **RMB 4.3 million**[62](index=62&type=chunk) - Net cash generated from investing activities was approximately **RMB 46.2 million**, mainly from proceeds from the sale of time deposits of approximately **RMB 205.2 million**, partially offset by purchases of financial assets and time deposits[63](index=63&type=chunk) - Net cash used in financing activities was approximately **RMB 0.5 million**, primarily comprising payments for lease liabilities[64](index=64&type=chunk) [Capital Expenditure](index=19&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, capital expenditure primarily involved the acquisition of property, plant and equipment, amounting to RMB 2,859 thousand, a significant increase from the prior year, while intangible asset capital expenditure was zero Capital Expenditure (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Property, Plant and Equipment | 2,859 | 732 | | Intangible Assets | – | 6,001 | - Capital expenditure primarily includes the acquisition of property, plant and equipment (such as computer and electronic equipment) and intangible assets like computer software and website usage rights[65](index=65&type=chunk) [Foreign Exchange Fluctuation Risk](index=19&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group's operations are primarily conducted in China, with most transactions settled in RMB, and the Board believes there is no significant foreign exchange risk; no derivative activities or hedging of foreign exchange risk were undertaken during the reporting period - The Group's operations are primarily conducted in China, with most transactions settled in RMB, and there is **no significant foreign exchange risk**[67](index=67&type=chunk) - No derivative activities or hedging of foreign exchange risk were undertaken during the reporting period[67](index=67&type=chunk) [Treasury Policy](index=19&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a prudent financial management approach, with the majority of cash and cash equivalents held by Chinese financial institutions, and manages liquidity risk by monitoring the maturity dates of financial liabilities and assets, as well as projected operating cash flows - The Group adopts a **prudent financial management approach**, with the vast majority of cash and cash equivalents held by major financial institutions in China[68](index=68&type=chunk) - Liquidity risk is managed by monitoring the risk of funding shortfalls[68](index=68&type=chunk) [Pledge of Assets](index=19&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had not pledged any assets as collateral for bank borrowings or any other financing activities - As of June 30, 2025, the Group had **not pledged any assets**[69](index=69&type=chunk) [Significant Investments, Material Acquisitions and Disposals of Subsidiaries and Capital Assets](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2) The Group's financial asset investments primarily include unlisted investment funds and wealth management products; as of June 30, 2025, the Group held a 58.79% interest in Ruibo Fund with an investment cost of RMB 30,000 thousand and a fair value of RMB 25,571 thousand, representing approximately 4.2% of the Group's total assets; there were no other significant investments, acquisitions, or disposals during the reporting period - Financial asset investments primarily include **unlisted investment funds and wealth management product investments**[70](index=70&type=chunk) Significant Investment: Ruibo Fund | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Percentage of Interest Held | 58.79% | 58.79% | | Investment Cost (RMB '000) | 30,000 | 30,000 | | Fair Value (RMB '000) | 25,571 | 25,571 | | Percentage of Group's Total Assets | Approx. 4.2% | - | - During the reporting period, the Group held **no other significant investments** and made **no material acquisitions or disposals** of subsidiaries, associates, and joint ventures[72](index=72&type=chunk) [Contingent Liabilities](index=20&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had **no material contingent liabilities**[73](index=73&type=chunk) [Employees and Remuneration Policy](index=20&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 had 77 full-time employees, a decrease from 126 in the prior year, with employee benefit expenses of approximately RMB 22.2 million; the Group has established effective performance appraisal and incentive plans, and adopted a post-IPO restricted share unit scheme to attract and retain talent - As of June 30, 2025, the Group had **77 full-time employees** (June 30, 2024: 126 employees)[74](index=74&type=chunk) - For the six months ended June 30, 2025, employee benefits and expenses were approximately **RMB 22.2 million**[74](index=74&type=chunk) - The Group has established an effective employee performance appraisal system and employee incentive plan, and adopted a post-IPO restricted share unit scheme to attract and retain talent and drive overall performance[75](index=75&type=chunk) [Material Events After the Reporting Period](index=21&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) There were no material events after June 30, 2025, that would significantly impact the operating and financial results up to the date of this announcement - There were **no material events** after June 30, 2025[76](index=76&type=chunk) [Interim Dividend](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to pay any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved **not to pay any interim dividend** for the six months ended June 30, 2025[77](index=77&type=chunk) [Corporate Governance](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules; despite the Chairman and Chief Executive Officer roles being held by Mr. Xu, deviating from Code Provision C.2.1, the Board believes this arrangement ensures consistent strategic planning and management oversight for the Group - The company has adopted the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules[78](index=78&type=chunk) - Mr. Xu concurrently serves as the Chairman and Chief Executive Officer, deviating from Code Provision C.2.1, but the Board believes this arrangement ensures consistent leadership and efficient strategic planning for the Group[78](index=78&type=chunk) - The Board of Directors comprises a balanced mix of members with diverse experience and industry backgrounds, including **three independent non-executive directors**[79](index=79&type=chunk) [Standard Code for Securities Transactions](index=22&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%88%99) The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors confirmed their compliance with the code during the reporting period - The company has adopted the **Standard Code** set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[80](index=80&type=chunk) - All directors confirmed their compliance with the Standard Code throughout the reporting period[80](index=80&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=22&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD) During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities; as of June 30, 2025, and up to the date of this announcement, no restricted share units were granted, and the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[81](index=81&type=chunk) - As of June 30, 2025, and up to the date of this announcement, **no restricted share units were granted**[81](index=81&type=chunk) - As of June 30, 2025, the company held **no treasury shares**[82](index=82&type=chunk) [Audit Committee](index=22&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, has reviewed the accounting principles and practices adopted by the Group and confirmed that the interim results for the six months ended June 30, 2025, were properly prepared - The Audit Committee comprises **three independent non-executive directors**: Mr. Wu Haoyun (Chairman), Mr. Xu Xiangyang, and Mr. Sun Yong[83](index=83&type=chunk) - The Audit Committee has reviewed the interim condensed consolidated financial statements and the interim results announcement, deeming them properly prepared in accordance with relevant accounting standards, rules, and regulations[83](index=83&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=22&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the Stock Exchange website and the company's website; the interim report will be dispatched to shareholders and published on the Stock Exchange and company websites in due course as required - The interim results announcement has been published on the Stock Exchange website **www.hkexnews.hk** and the company's website **www.cheshi.com**[84](index=84&type=chunk) - The interim report will be dispatched to shareholders and published on the Stock Exchange and the company's website in due course as required[84](index=84&type=chunk) [Definitions](index=23&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used throughout the interim results announcement - This section provides definitions for key terms used in the interim results announcement, including AI, Audit Committee, Board, Corporate Governance Code, Chairman, China, the Company, Directors, the Group, Hong Kong, HK$, Listing Date, Listing Rules, Mr. Xu, Standard Code, Post-IPO Restricted Share Unit Scheme, R&D, RMB, Reporting Period, SaaS, Shares, Shareholders, Stock Exchange, THB, US$, and Percentage[85](index=85&type=chunk)[86](index=86&type=chunk) [Board of Directors](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) This section lists the members of the Board of Directors, including executive and independent non-executive directors - The Board of Directors includes Executive Directors Mr. Xu Chong, Mr. Liu Lei, Mr. Lin Yuqi, and Ms. Zhang Nan; and Independent Non-Executive Directors Mr. Xu Xiangyang, Mr. Sun Yong, and Mr. Wu Haoyun[87](index=87&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，且明確表示概不就因本公告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 PURAPHARM CORPORATION LIMITED 培力農本方有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1498） 截至二零二五年六月三十日止六個月之 中期業績公告 | 財務摘要 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | 截至六月三十日止六個月 | | | | | | | 二零二五年 | | 二零二四年 | | | | | | 收入 | 佔總額 | 收入 | 佔總額 | 變動 | | | | 千港元 | 百分比 | 千港元 | 百分比 | 千港元 | % | | 香港及海外濃縮中藥配方顆粒 | 92,103 | 53.5% | 107,643 | 51.8% | (15,540) | (14.4%) | | 中國濃縮中藥配方顆粒 | 966 | 0.6% | 20,675 | 10.0% | (1 ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) [Performance Summary](index=1&type=section&id=Performance%20Summary) For the six months ended June 30, 2025, revenue grew by 2.91% year-on-year, but profit before tax and profit attributable to equity holders declined, with basic and diluted earnings per share at RMB 24.05 cents Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 10,899.7 | 10,591.4 | +2.91 | | Profit Before Tax | 2,515.8 | 2,615.2 | -3.80 | | Profit Attributable to Equity Holders of the Company | 1,982.7 | 2,086.7 | -4.98 | | Basic and Diluted Earnings Per Share | 24.05 cents | 25.31 cents | -4.98 | [Unaudited Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) [Unaudited Consolidated Statement of Profit or Loss](index=2&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue increased to RMB 10,899.7 million, but operating profit and profit for the period decreased year-on-year due to lower other income and a shift from other gains to losses Key Data from Unaudited Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 10,899,657 | 10,591,388 | | Other income | 149,231 | 222,153 | | Operating profit | 3,047,642 | 3,122,642 | | Profit before tax | 2,515,799 | 2,615,236 | | Profit for the period | 2,070,587 | 2,187,033 | | Profit for the period attributable to equity holders of the Company | 1,982,660 | 2,086,711 | [Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income was RMB 2,087.7 million, slightly below the prior year, positively impacted by a shift in foreign exchange differences but negatively affected by increased fair value losses on cash flow hedges Key Data from Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 2,070,587 | 2,187,033 | | Exchange differences on translation of foreign operations | 19,964 | (76,144) | | Cash flow hedges: fair value loss for the period | (4,073) | (14,836) | | Total comprehensive income for the period | 2,087,700 | 2,104,466 | | Total comprehensive income for the period attributable to equity holders of the Company | 1,988,428 | 2,004,144 | [Unaudited Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, both total assets and liabilities grew, with increases in property, plant and equipment, and significant rises in bank borrowings and short-term financing bills, leading to an improved net current liability position Key Data from Unaudited Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 77,538,221 | 76,988,205 | | Total current assets | 26,410,007 | 24,065,236 | | Total current liabilities | 29,929,891 | 28,114,771 | | Net current liabilities | (3,519,884) | (4,049,535) | | Net assets | 38,346,081 | 37,482,775 | | Total equity | 38,346,081 | 37,482,775 | [Notes to the Unaudited Interim Financial Report](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) [General and Basis of Presentation](index=7&type=section&id=General%20and%20Basis%20of%20Presentation) This interim financial report is prepared on a going concern basis despite net current liabilities, as directors believe the Group can meet its obligations, and is presented in RMB in accordance with IAS 34 - As of June 30, 2025, the Group had **net current liabilities of RMB 3,519,884,000**, but the Board of Directors is confident in the Group's ability to continue as a going concern[11](index=11&type=chunk) - The interim financial report is presented in RMB and prepared in accordance with International Accounting Standard 34[11](index=11&type=chunk)[12](index=12&type=chunk) [Principal Accounting Policies](index=7&type=section&id=Principal%20Accounting%20Policies) The interim financial report is prepared primarily on a historical cost basis, with the first-time application of amendments to IAS 21, "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," which had no material impact on financial performance - This interim financial report is primarily prepared on a historical cost basis, with certain financial instruments measured at fair value[13](index=13&type=chunk) - The Group applied the amendments to IAS 21 for the first time, which had **no material impact** on its financial performance and position[14](index=14&type=chunk) [Revenue](index=8&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was RMB 10,899.7 million, primarily from contracts with customers, with sales of electricity and heat being the main components, recognized mostly at a point in time and dominated by the Mainland China market Revenue Composition (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers | 10,874,248 | 10,563,318 | | Leases | 25,409 | 28,070 | | **Total Revenue** | **10,899,657** | **10,591,388** | Breakdown of Revenue from Contracts with Customers (H1 2025) | Type of Goods and Services | Gas-fired Power and Heat (RMB thousand) | Wind Power (RMB thousand) | Photovoltaic Power (RMB thousand) | Hydropower (RMB thousand) | Others (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sale of electricity | 5,306,485 | 2,683,464 | 1,535,364 | 70,922 | – | 9,596,235 | | Sale of heat | 1,274,656 | – | – | – | – | 1,274,656 | | Repair, maintenance and other services | – | – | – | – | 3,357 | 3,357 | | **Revenue from contracts with customers** | **6,581,141** | **2,683,464** | **1,535,364** | **70,922** | **3,357** | **10,874,248** | - Effective January 1, 2024, subsidies for gas-fired power generation have been reclassified to electricity sales revenue[20](index=20&type=chunk) [Segment Information](index=10&type=section&id=Segment%20Information) The Group is managed and reports based on its main business segments, including gas-fired power and heat, wind power, photovoltaic power, and hydropower, with all segments except hydropower showing revenue growth in H1 2025 Reportable Segment Revenue and Results (H1 2025) | Segment | Revenue from External Customers (RMB thousand) | Reportable Segment Results (RMB thousand) | | :--- | :--- | :--- | | Gas-fired power and heat | 6,581,141 | 996,227 | | Wind power | 2,683,464 | 1,498,942 | | Photovoltaic power | 1,535,364 | 822,988 | | Hydropower | 70,922 | (22,210) | | Others | 28,766 | (248,305) | | **Total** | **10,899,657** | **3,047,642** | Reportable Segment Revenue and Results (H1 2024) | Segment | Revenue from External Customers (RMB thousand) | Reportable Segment Results (RMB thousand) | | :--- | :--- | :--- | | Gas-fired power and heat | 6,449,227 | 899,699 | | Wind power | 2,457,115 | 1,384,663 | | Photovoltaic power | 1,513,994 | 720,457 | | Hydropower | 141,213 | 273,167 | | Others | 29,839 | (155,344) | | **Total** | **10,591,388** | **3,122,642** | [Other Income](index=11&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income decreased by 32.85% year-on-year to RMB 149.2 million, primarily due to a significant drop in carbon emission rights income, despite an increase in VAT refunds or exemptions Other Income Composition (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government grants and subsidies for clean energy production | 12,813 | 12,179 | | Government grants and subsidies for asset construction | 10,672 | 9,997 | | Income from carbon emission rights | 13,150 | 72,864 | | VAT refund or exemption | 75,801 | 73,286 | | Others | 36,795 | 53,827 | | **Total** | **149,231** | **222,153** | - Income from carbon emission rights is mainly derived from the sale of carbon credits registered in regulated trading systems in Australia and China[29](index=29&type=chunk) - The Group benefits from a **50% VAT refund** on wind farm sales revenue and a full VAT exemption on residential heat sales revenue[29](index=29&type=chunk) [Other Gains and Losses](index=12&type=section&id=Other%20Gains%20and%20Losses) For the six months ended June 30, 2025, the company shifted from other gains of RMB 340.6 million in the prior year to other losses of RMB 11.0 million, mainly due to fair value losses from the declining share price of CGN Power and compensation received for a hydropower station shutdown in the prior year Other Gains and Losses Composition (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss on disposal of property, plant and equipment | (3,522) | (988) | | Net foreign exchange gain/(loss) | 26,156 | (11,217) | | (Loss)/gain arising on changes in fair value of financial assets at FVTPL | (18,747) | 177,376 | | Others | (14,840) | 175,379 | | **Total** | **(10,953)** | **340,550** | - In H1 2025, other losses were primarily due to **fair value losses from the decline in CGN Power's share price**[73](index=73&type=chunk) - In H1 2024, other gains mainly included compensation for a hydropower station shutdown and fair value gains from the rise in CGN Power's share price[73](index=73&type=chunk) [Interest Income / Finance Costs](index=12&type=section&id=Interest%20Income%20%2F%20Finance%20Costs) For the six months ended June 30, 2025, interest income decreased year-on-year while total finance costs slightly increased, mainly due to the expensing of interest as more project companies commenced operations Interest Income and Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 21,790 | 31,452 | | Interest expense | 654,753 | 684,344 | | Less: Amount capitalised in property, plant and equipment | (42,792) | (85,093) | | **Total finance costs** | **611,961** | **599,251** | - The increase in finance costs was mainly due to the expensing of interest expenses as more project companies commenced operations with increased installed capacity[80](index=80&type=chunk) [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense increased by 3.97% year-on-year to RMB 445.2 million, calculated mainly at the 25% China EIT rate, with some enterprises in western regions benefiting from a preferential 15% rate and "three-free, three-half" policies Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax: China Enterprise Income Tax | 445,052 | 396,732 | | Deferred tax: Current period | 160 | 31,471 | | **Income tax expense** | **445,212** | **428,203** | - Enterprises in encouraged industries in Western China benefit from a **preferential 15% tax rate** and a "three-free, three-half" EIT holiday, which applies to some of the Group's wind and photovoltaic projects[31](index=31&type=chunk) - Australian profits tax is calculated at **30%** of the estimated assessable profit[33](index=33&type=chunk) [Profit for the Period](index=14&type=section&id=Profit%20for%20the%20Period) For the six months ended June 30, 2025, profit for the period was RMB 2,070.6 million, a year-on-year decrease of 5.32%, after deducting total depreciation and amortization of RMB 1,863.4 million Items Deducted from Profit for the Period (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 1,293 | 2,003 | | Operating lease payments for land and buildings | 31,754 | 24,094 | | Total depreciation and amortization | 1,863,422 | 2,034,760 | [Dividends](index=14&type=section&id=Dividends) The company approved a final ordinary dividend of RMB 14.30 cents per share for 2024, totaling RMB 1,178.964 million, on June 18, 2025, and the Board does not recommend an interim dividend for H1 2025 - A final ordinary dividend for 2024 of **RMB 14.30 cents per share** (tax inclusive), totaling RMB 1,178,964,000, was approved on June 18, 2025[37](index=37&type=chunk) - The Board of Directors **does not recommend** the payment of any interim dividend for the six months ended June 30, 2025[37](index=37&type=chunk) [Earnings Per Share](index=14&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were RMB 24.05 cents, down from RMB 25.31 cents in the prior year, based on the profit attributable to ordinary equity holders and the number of shares in issue Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 24.05 | 25.31 | - The decrease in basic earnings per share was mainly due to the decline in profit attributable to ordinary equity holders from RMB 2,086,711,000 to **RMB 1,982,660,000**, while the number of shares in issue remained unchanged[36](index=36&type=chunk) - There is **no difference between basic and diluted earnings per share** as there were no potential dilutive shares outstanding[36](index=36&type=chunk) [Trade and Bills Receivables](index=15&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased to RMB 15,971.8 million from year-end 2024, driven by receivables for clean energy tariff surcharges, with major customers being state-owned grid companies in China and an average credit period of 60 days Trade and Bills Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables - goods and services | 2,422,714 | 2,857,184 | | Trade receivables - clean energy tariff surcharge | 13,590,316 | 11,197,931 | | Bills receivable | 1,450 | 4,481 | | Less: Allowance for credit losses | (42,690) | (42,690) | | **Total** | **15,971,790** | **14,016,906** | Aging Analysis of Trade and Bills Receivables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 3,722,086 | 2,957,793 | | 61 to 365 days | 3,128,547 | 2,506,582 | | 1 to 2 years | 3,322,067 | 3,211,951 | | 2 to 3 years | 2,351,135 | 2,396,370 | | Over 3 years | 3,447,955 | 2,944,210 | | **Total** | **15,971,790** | **14,016,906** | [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables slightly decreased to RMB 6,528.2 million from year-end 2024, with a notable reduction in payables for the acquisition of property, plant and equipment, while trade payables and retention money payable increased Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 2,644,666 | 2,467,597 | | Payables for acquisition of property, plant and equipment | 2,228,166 | 3,206,406 | | Retention money payable | 730,658 | 312,321 | | Bills payable | 60,000 | 50,000 | | Salaries and employee benefits | 122,360 | 122,671 | | Non-income taxes payable | 143,380 | 270,529 | | Others | 598,936 | 354,593 | | **Total** | **6,528,166** | **6,784,117** | Aging Analysis of Trade and Bills Payables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 789,502 | 1,792,715 | | 31 to 365 days | 1,364,215 | 322,290 | | 1 to 2 years | 469,716 | 380,124 | | 2 to 3 years | 60,738 | 22,298 | | Over 3 years | 20,495 | 170 | | **Total** | **2,704,666** | **2,517,597** | [Power Industry Overview](index=17&type=section&id=Power%20Industry%20Overview) [Power Industry Overview](index=17&type=section&id=Power%20Industry%20Overview) In H1 2025, China's power system operated stably with a 3.7% rise in electricity consumption, while non-fossil fuel generation capacity reached 60.9% of the total, though equipment utilization hours generally declined due to the rapid expansion of wind and solar capacity - In H1 2025, China's total electricity consumption was **4.8 trillion kWh**, a year-on-year increase of 3.7%[42](index=42&type=chunk) - As of H1 2025, national power generation installed capacity reached **3.65 billion kW**, up 18.7% YoY, with non-fossil fuel capacity at 2.22 billion kW, accounting for **60.9%** of the total[42](index=42&type=chunk) - Wind and photovoltaic power accounted for **89.9%** of the total new installed capacity, with a combined addition of 260 million kW[42](index=42&type=chunk) - The average utilization hours of power generation equipment of 6,000 kW and above **decreased by 100 hours** YoY, with declines in gas, wind, and solar, linked to rapid capacity growth[43](index=43&type=chunk) [Business Review](index=18&type=section&id=2025%20H1%20Business%20Review) [Operating scale steadily increased, with resilience in the gas-fired power generation segment](index=18&type=section&id=Operating%20scale%20steadily%20increased%2C%20with%20resilience%20in%20the%20gas-fired%20power%20generation%20segment) In H1 2025, the Group's total assets grew by 2.9% to RMB 103.95 billion and total operating revenue increased by 2.9% to RMB 10.90 billion, with the gas-fired power and heat segment demonstrating stable performance and utilization hours above the national average - As of June 30, 2025, total assets reached **RMB 103.95 billion**, a 2.9% increase from the beginning of the year[45](index=45&type=chunk) - Total operating revenue was **RMB 10.90 billion**, a year-on-year increase of 2.9%[45](index=45&type=chunk) - The gas-fired power and heat segment generated **9.72 billion kWh**, up 2.3% YoY, with equipment utilization of approximately **2,036 hours**, exceeding the national average[45](index=45&type=chunk) - Beijing Jingneng Gaoantun Gas-fired Cogeneration Co, Ltd's power generation **grew by 19%**, and Beijing Shangzhuang Gas-fired Cogeneration Co, Ltd's profit **increased by 26.9%**[45](index=45&type=chunk) [Installed capacity continued to expand, power generation grew steadily, and unit operating efficiency was continuously optimized](index=19&type=section&id=Installed%20capacity%20continued%20to%20expand%2C%20power%20generation%20grew%20steadily%2C%20and%20unit%20operating%20efficiency%20was%20continuously%20optimized) As of June 30, 2025, the Group's total installed capacity rose by 21.4% to 17.914 million kW, with non-fossil fuels accounting for 73.3%, while total power generation grew by 8.8% to 21.87 billion kWh, driven by significant growth in wind and solar power whose utilization hours surpassed national averages - As of June 30, 2025, total installed capacity increased to **17.914 million kW**, a 21.4% year-on-year growth[46](index=46&type=chunk) - Non-fossil fuel installed capacity reached **13.139 million kW**, accounting for **73.3%** of the total[46](index=46&type=chunk) - Total power generation in H1 was **21.87 billion kWh**, an 8.8% increase year-on-year[46](index=46&type=chunk) - The wind power segment generated **8.49 billion kWh**, up 18.9%, with utilization hours of **1,240**, which is 153 hours above the national average[46](index=46&type=chunk) - The photovoltaic power segment generated **3.36 billion kWh**, up 17.4%, with utilization hours of **680**, which is 120 hours above the national average[46](index=46&type=chunk) [New progress in strategic emerging projects, with steady advancement in project development](index=19&type=section&id=New%20progress%20in%20strategic%20emerging%20projects%2C%20with%20steady%20advancement%20in%20project%20development) The Group actively responded to new energy market reforms, securing 540,000 kW of new approvals or development quotas in H1 and maintaining a project pipeline exceeding 10 million kW, while achieving substantial progress on key strategic projects - In the reporting period, the Group secured **540,000 kW** of new approvals or renewable energy development quotas, with a project pipeline exceeding **10 million kW**[47](index=47&type=chunk) - Construction began on the first 1.5 million kW phase of the **4.9 million kW Xilingol League windbreak and sand fixation project**, with 100,000 kW fully connected to the grid in H1[48](index=48&type=chunk) - The **Shantou offshore wind power project's** submarine cable route plan was approved, and resource surveys for the **Chengde green power to Beijing project** were completed[48](index=48&type=chunk) - The Group received approval for the layout optimization of the **Mentougou pumped storage project** and signed a cooperation agreement for the **Hulunbuir-Xing'an League green power to Beijing project**[48](index=48&type=chunk) [Digital and intelligent empowerment drives innovation, building new quality productive forces in green energy](index=21&type=section&id=Digital%20and%20intelligent%20empowerment%20drives%20innovation%2C%20building%20new%20quality%20productive%20forces%20in%20green%20energy) The Group enhanced production and management efficiency through technological innovation, such as optimizing unit control strategies and introducing drone inspections, and digital transformation, centered on a "Smart Energy Management Platform" - Unit generation capacity and reliability were improved through refined power curve verification, blade extensions, and preventive generator replacements[50](index=50&type=chunk) - The innovative introduction of a **drone intelligent inspection system** enhanced equipment monitoring efficiency and reduced unplanned downtime[50](index=50&type=chunk) - A comprehensive digital ecosystem was built around the **"Smart Energy Management Platform,"** covering intelligent waste heat utilization, power marketing control, distributed PV O&M, and AI-enabled safety production[51](index=51&type=chunk) - The Jingqiao Thermal Power waste heat project **reduced heat network losses by 6%**, and the distributed PV intelligent O&M platform **shortened fault location time by 80%**[51](index=51&type=chunk) [In-depth research on marketing strategies to actively respond to power market reforms](index=22&type=section&id=In-depth%20research%20on%20marketing%20strategies%20to%20actively%20respond%20to%20power%20market%20reforms) The Group closely monitored power market reforms, developed a sensitivity analysis model to enhance price-volume analysis, actively pursued high-value transactions like inter-provincial trading, and pioneered new transaction models such as "green electricity direct connection" - A **market marketing data sensitivity analysis model** for existing assets was established to strengthen price-volume analysis[52](index=52&type=chunk) - **250 million kWh** of green electricity was transmitted to Beijing from the Xilingol League Phase II project through multi-year green power transactions[52](index=52&type=chunk) - The first transaction in Beijing to replace reduced gas-fired generation with new energy was completed, totaling **460 million kWh** and yielding favorable economic returns[52](index=52&type=chunk) - The Group explored direct transaction models with electricity consumers under the **"green electricity direct connection"** policy to enhance local consumption[52](index=52&type=chunk) [Multi-dimensional measures to boost market confidence and proactively create value](index=22&type=section&id=Multi-dimensional%20measures%20to%20boost%20market%20confidence%20and%20proactively%20create%20value) The Group actively managed its market capitalization through investor roadshows, set a strategic goal for inclusion in the Hang Seng Index and Stock Connect, and announced a three-year dividend plan to drive a stable recovery in market value - Completed roadshows in **Hong Kong, Singapore, Beijing, and Shanghai**, and hosted multiple investor visits, covering nearly 50 institutions[53](index=53&type=chunk) - Set the strategic goal of **"inclusion in the Hang Seng Index and Stock Connect"** to increase liquid market capitalization[53](index=53&type=chunk) - Released a **three-year shareholder dividend plan** and is actively exploring diversified market value management tools such as share buybacks[53](index=53&type=chunk) - A combination of **"strategic upgrade + profit growth + dividend enhancement"** is being used to promote a stable recovery in market value[53](index=53&type=chunk) [Performance Outlook](index=23&type=section&id=2025%20H2%20Performance%20Outlook) [Strengthening the safety line of defense and consolidating the foundation of energy supply](index=23&type=section&id=Strengthening%20the%20safety%20line%20of%20defense%20and%20consolidating%20the%20foundation%20of%20energy%20supply) In H2, the Group will deepen its safety production responsibility system and enhance equipment lifecycle management, while leveraging AI large models to optimize operational parameters for gas-fired units and improve safety monitoring at other power plants - The Group will continue to deepen the **full-staff safety production responsibility system** and strengthen equipment lifecycle management[55](index=55&type=chunk) - Gas-fired power plants in Beijing will optimize load distribution, enhance peak-shaving capabilities, and develop an **AI large model for gas-fired units** to achieve automatic optimization of operating parameters[55](index=55&type=chunk) - Power plants outside Beijing will develop a **multi-modal large model-based safety management platform** to enhance intelligent equipment status perception and personnel behavior recognition[55](index=55&type=chunk) [Enhancing market-oriented marketing capabilities and optimizing trading strategies](index=24&type=section&id=Enhancing%20market-oriented%20marketing%20capabilities%20and%20optimizing%20trading%20strategies) The Group will develop a wind and solar power forecasting platform using advanced weather models to maximize returns, while implementing differentiated pricing and focusing on securing green electricity premiums to reduce subsidy dependence - A **wind and solar power forecasting and market load forecasting platform** will be developed using cutting-edge weather large models to provide high-precision forecast data[56](index=56&type=chunk) - The Group will secure high-priced transactions through **settlement data analysis and bilateral negotiations**[56](index=56&type=chunk) - A **differentiated pricing mechanism** will be implemented to create customized power allocation and trading strategies, with a focus on securing green electricity transaction premiums[56](index=56&type=chunk) [Focusing on green power transmission to Beijing and large-scale base projects, reserving incremental projects for the 15th Five-Year Plan](index=24&type=section&id=Focusing%20on%20green%20power%20transmission%20to%20Beijing%20and%20large-scale%20base%20projects%2C%20reserving%20incremental%20projects%20for%20the%2015th%20Five-Year%20Plan) The Group will prioritize green power transmission to Beijing and large-scale base projects, focusing on resource planning for three key transmission channels, while advancing pumped storage and wind power projects in the Beijing-Tianjin-Hebei region - The Group will focus on resource surveys and planning for three major transmission channels to Beijing: **Chengde, Hulunbuir-Xing'an League, and Ningxia**[57](index=57&type=chunk) - In the Beijing-Tianjin-Hebei region, the Group will advance the preliminary planning of the **Mentougou pumped storage project**, the Zhuwo project, the "Guanting replacement" project, and the Huainan Phase II wind power project[57](index=57&type=chunk) - The implementation progress of the **Xilingol League windbreak and sand fixation project** and the **Shantou offshore wind power project** will be closely monitored to achieve major milestones in H2[57](index=57&type=chunk) [Proactively maintaining company market value and striving for early inclusion in the Stock Connect](index=25&type=section&id=Proactively%20maintaining%20company%20market%20value%20and%20striving%20for%20early%20inclusion%20in%20the%20Stock%20Connect) In H2, the Group will continue to actively manage its market value through enhanced investor communication and transparency, while exploring special dividends and share buybacks to boost market confidence and aim for early inclusion in the Stock Connect - The Group will continue to **proactively maintain and enhance its market value**, communicate with investors, and improve information disclosure transparency[58](index=58&type=chunk) - **Special dividend and share buyback plans** will be studied to enhance market confidence and align the Group's interests with those of its shareholders[58](index=58&type=chunk) - Efforts will be made to increase the liquid market capitalization and gain shareholder support to achieve **early inclusion in the "Stock Connect"**[58](index=58&type=chunk) [Operating Performance and Analysis](index=25&type=section&id=Operating%20Performance%20and%20Analysis) [Overview](index=25&type=section&id=Overview) In H1 2025, the company's profit for the period and profit attributable to equity holders decreased by 5.32% and 4.98% year-on-year, respectively Profit for the Period Overview (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 2,070.6 | 2,187.0 | -5.32 | | Profit attributable to equity holders | 1,982.7 | 2,086.7 | -4.98 | [Operating Revenue](index=25&type=section&id=Operating%20Revenue) In H1 2025, total operating revenue increased by 2.91% to RMB 10,899.7 million, primarily driven by higher electricity sales from the wind and photovoltaic power segments, while the hydropower segment's revenue declined significantly due to a station shutdown - Total operating revenue increased by **2.91%** from RMB 10,591.4 million in H1 2024 to **RMB 10,899.7 million** in H1 2025, mainly due to increased electricity sales from wind and photovoltaic power projects[60](index=60&type=chunk) Segment Operating Revenue Change (For the six months ended June 30) | Segment | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gas-fired power and heat | 6,581.1 | 6,449.2 | +2.05 | | Wind power | 2,683.5 | 2,457.1 | +9.21 | | Photovoltaic power | 1,535.4 | 1,514.0 | +1.41 | | Hydropower | 70.9 | 141.2 | -49.79 | | Others | 28.8 | 29.8 | -4.01 | [Other Income](index=26&type=section&id=Other%20Income) In H1 2025, other income decreased by 32.85% to RMB 149.2 million, primarily due to the expiration of a power purchase agreement in Australia and a sharp decline in green certificate market prices, which reduced carbon emission revenue Other Income Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other income | 149.2 | 222.2 | -32.85 | - The decrease in other income was mainly due to the expiration of an Australian power purchase agreement and a sharp fall in green certificate market prices, leading to a **year-on-year reduction in carbon emission revenue**[66](index=66&type=chunk) [Operating Expenses](index=27&type=section&id=Operating%20Expenses) In H1 2025, operating expenses rose by 4.03% to RMB 8,001.2 million, driven by higher gas consumption, staff costs, and maintenance expenses, although this was partially offset by lower depreciation and other expenses due to policy adjustments and cost-saving measures Operating Expenses Change (For the six months ended June 30) | Item | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total operating expenses | 8,001.2 | 7,690.9 | +4.03 | | Gas consumption | 4,902.4 | 4,743.5 | +3.35 | | Depreciation and amortization expenses | 1,863.4 | 2,034.8 | -8.42 | | Staff costs | 557.1 | 535.4 | +4.05 | | Repair and maintenance | 189.2 | 174.7 | +8.30 | | Other expenses | 478.2 | 543.0 | -11.93 | | Other losses and gains | -11.0 | 340.6 | N/A (Gain to Loss) | - The decrease in depreciation and amortization expenses was mainly due to **adjustments in the depreciation policy for fixed assets**[69](index=69&type=chunk) - The reduction in other expenses was primarily due to the **significant results of the Group's cost reduction and efficiency enhancement initiatives**[72](index=72&type=chunk) [Operating Profit](index=28&type=section&id=Operating%20Profit) In H1 2025, operating profit decreased by 2.40% to RMB 3,047.6 million, as profit growth in the wind, gas, and solar segments was offset by the hydropower segment swinging to a loss and wider losses in the "others" segment due to the decline in CGN Power's share price Segment Operating Profit Change (For the six months ended June 30) | Segment | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total operating profit | 3,047.6 | 3,122.6 | -2.40 | | Wind power | 1,498.9 | 1,384.7 | +8.25 | | Gas-fired power and heat | 996.2 | 899.7 | +10.73 | | Photovoltaic power | 823.0 | 720.5 | +14.23 | | Hydropower | -22.2 | 273.2 | N/A (Profit to Loss) | | Others | -248.3 | -155.5 | N/A (Loss Widened) | - The operating loss in the hydropower segment was mainly due to a **significant year-on-year decrease in electricity sales** following a power station shutdown in H1 2024[78](index=78&type=chunk) - The increased loss in the "others" segment was primarily due to the **decline in the share price of CGN Power** held by the Group[79](index=79&type=chunk) [Finance Costs](index=29&type=section&id=Finance%20Costs) In H1 2025, finance costs increased by 2.12% to RMB 612.0 million, mainly due to the expensing of interest expenses as more project companies commenced operations Finance Costs Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 612.0 | 599.3 | +2.12 | [Share of results of associates and a joint venture](index=29&type=section&id=Share%20of%20results%20of%20associates%20and%20a%20joint%20venture) In H1 2025, the share of results from associates and a joint venture decreased year-on-year to RMB 58.3 million Share of Results of Associates and a Joint Venture Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Share of results of associates and a joint venture | 58.3 | 60.4 | [Profit Before Tax](index=29&type=section&id=Profit%20Before%20Tax) In H1 2025, profit before tax decreased by 3.80% year-on-year to RMB 2,515.8 million Profit Before Tax Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit before tax | 2,515.8 | 2,615.2 | -3.80 | [Income Tax Expense](index=30&type=section&id=Income%20Tax%20Expense) In H1 2025, income tax expense increased by 3.97% year-on-year to RMB 445.2 million Income Tax Expense Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 445.2 | 428.2 | +3.97 | [Profit for the Period](index=30&type=section&id=Profit%20for%20the%20Period) In H1 2025, profit for the period decreased by 5.32% year-on-year to RMB 2,070.6 million Profit for the Period Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 2,070.6 | 2,187.0 | -5.32 | [Profit for the period attributable to equity holders of the Company](index=30&type=section&id=Profit%20for%20the%20period%20attributable%20to%20equity%20holders%20of%20the%20Company) In H1 2025, profit for the period attributable to equity holders of the Company decreased by 4.98% year-on-year to RMB 1,982.7 million Profit for the Period Attributable to Equity Holders of the Company Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to equity holders of the Company | 1,982.7 | 2,086.7 | -4.98 | [Financial Position Analysis](index=30&type=section&id=Financial%20Position) [Overview](index=30&type=section&id=Overview) As of June 30, 2025, the Group's total assets were RMB 103,948.2 million, total liabilities were RMB 65,602.1 million, and total equity was RMB 38,346.1 million Financial Position Overview (As of June 30) | Indicator | June 30, 2025 (RMB million) | | :--- | :--- | | Total assets | 103,948.2 | | Total liabilities | 65,602.1 | | Total equity | 38,346.1 | | Equity attributable to equity holders | 33,969.2 | [Assets and Liabilities](index=30&type=section&id=Assets%20and%20Liabilities) As of June 30, 2025, total assets grew by 2.86% to RMB 103,948.2 million and total liabilities increased by 3.20% to RMB 65,602.1 million, primarily due to new project investments and related financing needs, while equity grew from retained earnings Assets, Liabilities and Equity Change (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 103,948.2 | 101,053.4 | +2.86 | | Total liabilities | 65,602.1 | 63,570.6 | +3.20 | | Total equity | 38,346.1 | 37,482.8 | +2.30 | | Equity attributable to equity holders of the Company | 33,969.2 | 33,161.1 | +2.44 | - The increase in total assets was mainly due to **investments in new projects**[87](index=87&type=chunk) - The increase in total liabilities was primarily due to **increased debt to fund project construction**[87](index=87&type=chunk) [Liquidity](index=31&type=section&id=Liquidity) As of June 30, 2025, current assets stood at RMB 26,410.0 million, while current liabilities were RMB 29,929.9 million, resulting in a 13.08% reduction in net current liabilities to RMB 3,519.9 million, indicating improved liquidity Key Liquidity Data (As of June 30) | Item | June 30, 2025 (RMB million) | | :--- | :--- | | Current assets | 26,410.0 | | Cash and cash equivalents | 7,975.6 | | Trade and bills receivables | 15,971.8 | | Current liabilities | 29,929.9 | | Short-term borrowings | 14,729.3 | | Short-term financing bills | 7,040.1 | | Net current liabilities | -3,519.9 | - Net current liabilities **decreased by 13.08%** from RMB 4,049.5 million on December 31, 2024 to **RMB 3,519.9 million** on June 30, 2025[88](index=88&type=chunk) [Net Gearing Ratio](index=31&type=section&id=Net%20Gearing%20Ratio) As of June 30, 2025, the net gearing ratio slightly decreased by 0.02 percentage points to 55.51%, as a 7.76% increase in cash and bank deposits offset a 2.97% rise in total borrowings Net Gearing Ratio and Related Indicators Change (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net gearing ratio | 55.51% | 55.53% | -0.02 p.p. | | Total long-term and short-term borrowings (RMB million) | 55,824.5 | 54,216 | +2.97% | | Bank deposits and cash (RMB million) | 7,975.6 | 7,401.6 | +7.76% | [Other Significant Events](index=32&type=section&id=Other%20Significant%20Events) [Fundraising](index=32&type=section&id=Fundraising) In H1 2025, the Group successfully issued multiple tranches of super short-term commercial papers and medium-term notes, raising a total of RMB 6.0 billion at interest rates ranging from 1.67% to 1.98% - On March 21, 2025, the Group issued **RMB 2.0 billion** of 238-day super short-term commercial papers at a rate of **1.87%**[90](index=90&type=chunk) - On April 8, 2025, the Group issued **RMB 1.5 billion** of 121-day super short-term commercial papers at a rate of **1.67%**[90](index=90&type=chunk) - On April 18, 2025, the Group issued **RMB 1.5 billion** of 180-day super short-term commercial papers at a rate of **1.68%**[90](index=90&type=chunk) - On June 26, 2025, the Group issued **RMB 1.0 billion** of 3+N year medium-term notes at a rate of **1.98%**[90](index=90&type=chunk) [Capital Expenditure](index=32&type=section&id=Capital%20Expenditure) In H1 2025, the Group's total capital expenditure amounted to RMB 3,013.6 million, primarily allocated to wind and photovoltaic power projects Capital Expenditure Composition (H1 2025) | Segment | Capital Expenditure (RMB million) | | :--- | :--- | | Gas-fired power and heat | 60.5 | | Wind power | 1,605.5 | | Photovoltaic power | 1,347.6 | | **Total** | **3,013.6** | [Acquisition and Establishment of Subsidiaries](index=32&type=section&id=Acquisition%20and%20Establishment%20of%20Subsidiaries) The Group did not acquire or establish any subsidiaries during the first half of 2025 - The Group did not acquire or establish any subsidiaries in H1 2025[92](index=92&type=chunk) [Contingent Liabilities](index=32&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had **no contingent liabilities**[93](index=93&type=chunk) [Pledge of Assets](index=33&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had pledged bank deposits, accounts receivable, fixed assets, and the entire equity of certain subsidiaries as security for bank borrowings - Bank deposits of **RMB 72.2 million** and accounts receivable of **RMB 3,243.2 million** were pledged as security for bank borrowings[94](index=94&type=chunk) - Fixed assets with a value of **RMB 1,953.9 million** were pledged as security for bank borrowings[94](index=94&type=chunk) - The entire equity of Gullen Range Wind Farm Holding Pty Ltd, Gullen Solar Pty Ltd, Ningxia Boyang New Energy Co, Ltd, and Ningxia Kaiyang New Energy Co, Ltd was pledged to banks as security for borrowings[94](index=94&type=chunk) [Significant Events After the Reporting Period](index=33&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the Group entered into a trust contract to issue asset-backed commercial papers totaling RMB 981,717,888.43, with the book-building process completed on July 7, 2025 - On April 24, 2025, the Group entered into a trust contract with CR SZITIC Trust Co, Ltd to issue **asset-backed commercial papers totaling RMB 981,717,888.43**[95](index=95&type=chunk) - The book-building process for these asset-backed commercial papers was completed on **July 7, 2025**[95](index=95&type=chunk) [Share Option Scheme](index=33&type=section&id=Share%20Option%20Scheme) As of June 30, 2025, the Company had not implemented any share option scheme - As of June 30, 2025, the Company had **not implemented any share option scheme**[97](index=97&type=chunk) [Foreign Exchange and Currency Risk](index=33&type=section&id=Foreign%20Exchange%20and%20Currency%20Risk) The Group's operations are primarily conducted in Mainland China and denominated in RMB, but it faces currency risk from overseas investments and foreign currency loans, which it will continue to monitor and manage - The majority of the Group's business is conducted in Mainland China, with most revenue and expenses denominated in **RMB**[98](index=98&type=chunk) - The Group is exposed to currency risk from a small number of overseas investments and foreign currency loans (AUD, HKD, USD, EUR), where RMB fluctuations could result in exchange gains or losses[98](index=98&type=chunk) - The Group will continue to monitor foreign exchange rates and strengthen currency risk management through various measures[98](index=98&type=chunk) [Corporate Governance and Other Information](index=34&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities**[99](index=99&type=chunk) - As of June 30, 2025, the Company **did not hold any treasury shares**[99](index=99&type=chunk) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board of Directors has not proposed any interim dividend for the six months ended June 30, 2025 - The Board of Directors has **not proposed any interim dividend** for the six months ended June 30, 2025[100](index=100&type=chunk) [Compliance with the Corporate Governance Code](index=34&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited - The Company has complied with all code provisions of the **Corporate Governance Code** in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[101](index=101&type=chunk) [Compliance with the Model Code for Securities Transactions](index=34&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions) 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, and all directors and supervisors have confirmed their strict compliance during the reporting period - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix C3 of the Listing Rules[102](index=102&type=chunk) - All directors and supervisors have confirmed their **strict compliance** with the required standards set out in the Model Code during the reporting period[102](index=102&type=chunk) [Audit Committee's Review of Interim Results](index=34&type=section&id=Audit%20Committee's%20Review%20of%20Interim%20Results) The Company's Audit Committee has reviewed the Group's interim results for 2025 and the unaudited interim financial report for the six months ended June 30, 2025, prepared in accordance with IAS 34 - The Company's Audit Committee has reviewed the Group's interim results for 2025 and the unaudited interim financial report for the six months ended June 30, 2025, prepared in accordance with **International Accounting Standard 34**[103](index=103&type=chunk) [Publication of Interim Results and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This results announcement is published on the websites of the Stock Exchange and the Company, and the 2025 interim report will be published in due course - This results announcement is published on the **"HKEXnews" website** of the Stock Exchange and the Company's website[104](index=104&type=chunk) - The Company will publish the **2025 interim report**, containing all information required by the Listing Rules, on the Company's and the Stock Exchange's websites in due course[104](index=104&type=chunk)

Financial Performance Overview [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) China Resources Medical Holdings Company Limited's revenue decreased by 9.1% to RMB 4.525 billion in H1 2025, with gross profit down 31.2% to RMB 713 million. Profit for the period was RMB 374 million, a 26.9% decrease, and profit attributable to owners of the parent was RMB 340 million, with basic earnings per share of RMB 0.27 2025 H1 Key Financial Data (Profit or Loss Statement) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 4,524,803 | 4,976,334 | -9.1% | | Cost of Sales | (3,812,276) | (3,939,986) | -3.2% | | Gross Profit | 712,527 | 1,036,348 | -31.2% | | Profit Before Tax | 508,123 | 627,328 | -19.0% | | Income Tax | (133,875) | (115,673) | +15.7% | | Profit for the Period | 374,248 | 511,655 | -26.9% | | Attributable to Owners of the Parent | 339,521 | 433,949 | -21.7% | | Basic Earnings Per Share (RMB) | 0.27 | 0.34 | -20.6% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were RMB 13.586 billion, a 2.0% increase from year-end 2024. Net current liabilities improved to RMB -1.210 billion from RMB -1.260 billion, and total equity rose 3.6% to RMB 7.769 billion June 30, 2025 Key Financial Data (Balance Sheet) | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 10,071,137 | 10,079,012 | -0.1% | | Total Current Assets | 3,514,492 | 3,239,138 | +8.5% | | **Total Assets** | **13,585,629** | **13,318,150** | **+2.0%** | | Total Current Liabilities | 4,724,639 | 4,499,386 | +5.0% | | Total Non-current Liabilities | 1,092,346 | 1,320,696 | -17.3% | | **Total Liabilities** | **5,816,985** | **5,820,082** | **-0.1%** | | Net Current Liabilities | (1,210,147) | (1,260,248) | Improved | | Equity Attributable to Owners of the Parent | 6,449,385 | 6,213,536 | +3.8% | | Non-controlling Interests | 1,319,259 | 1,284,532 | +2.7% | | **Total Equity** | **7,768,644** | **7,498,068** | **+3.6%** | Notes to the Financial Statements [Company Information](index=5&type=section&id=Company%20Information) China Resources Medical Holdings Company Limited is incorporated in the Cayman Islands, primarily engaged in integrated medical services, hospital management, and sales of pharmaceuticals and medical devices in mainland China - **Company registered in the Cayman Islands**[7](index=7&type=chunk) - **Primary businesses** include integrated medical services; providing hospital management services, selling pharmaceuticals, medical devices and consumables, and offering other services[7](index=7&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim financial report is prepared in accordance with IAS 34, using the historical cost convention and consistent accounting policies with the 2024 annual financial statements. Despite current liabilities exceeding current assets as of June 30, 2025, management deems the going concern basis appropriate due to sufficient bank facilities. Accounting policy changes had no significant impact this period - **Prepared in accordance with IAS 34 Interim Financial Reporting**[8](index=8&type=chunk) - **Accounting policies are consistent** with the **2024** annual financial statements, except for changes expected to be reflected in the **2025** annual financial statements[8](index=8&type=chunk) - As of **June 30, 2025**, current liabilities exceeded current assets by **RMB 1.21 billion**, but with approximately **RMB 8.02 billion** in unutilised bank facilities, management considers the going concern basis appropriate[9](index=9&type=chunk) - **Application of amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability** had no significant impact on this interim financial report[10](index=10&type=chunk) [Operating Segment Information](index=6&type=section&id=Operating%20Segment%20Information) The Group operates in two reportable segments: hospital business, covering outpatient and inpatient services of self-owned hospitals, and other businesses, including operational management and supply chain services for associate and IOT/OT hospitals. Segment performance is assessed based on adjusted profit before tax, with inter-segment transactions at market prices - **Reportable segments**: Hospital Business (outpatient and inpatient services of self-owned hospitals) and Other Businesses (operational management, supply chain, and other services to associate and IOT/OT hospitals)[16](index=16&type=chunk) - **Segment performance is assessed** based on adjusted profit/loss before tax, excluding fair value changes, unallocated income/gains, exchange differences, and unallocated losses/expenses[12](index=12&type=chunk) - **Inter-segment transactions are conducted** at prices used for sales to third parties at the time of transaction[14](index=14&type=chunk) [Segment Revenue and Results](index=7&type=section&id=Segment%20Revenue%20and%20Results) In H1 2025, hospital business revenue decreased 7.4% to RMB 4.259 billion, with segment results down 51.1% to RMB 255 million. Other business revenue fell 29.3% to RMB 266 million, but segment results surged 96.9% to RMB 292 million due to a one-off compensation payment Segment Revenue and Results (RMB '000) | Metric | Hospital Business (2025) | Hospital Business (2024) | Other Businesses (2025) | Other Businesses (2024) | | :--- | :--- | :--- | :--- | :--- | | Segment Revenue | 4,258,616 | 4,600,005 | 266,187 | 376,329 | | Segment Costs | (3,588,771) | (3,677,361) | (223,505) | (262,625) | | Segment Results | 254,708 | 520,836 | 292,340 | 148,486 | - **Hospital business revenue decreased by 7.4%** year-on-year, and segment results decreased by **51.1%** year-on-year[17](index=17&type=chunk)[19](index=19&type=chunk) - **Other business revenue decreased by 29.3%** year-on-year, while segment results significantly increased by **96.9%** year-on-year[17](index=17&type=chunk)[19](index=19&type=chunk) [Segment Assets and Liabilities](index=9&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, hospital business segment assets were RMB 8.781 billion, and other business segment assets were RMB 1.366 billion. Segment liabilities exclude interest-bearing bank borrowings and other unallocated head office and corporate liabilities Segment Assets and Liabilities (RMB '000) | Metric | Hospital Business (Jun 30, 2025) | Hospital Business (Dec 31, 2024) | Other Businesses (Jun 30, 2025) | Other Businesses (Dec 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | Segment Assets | 8,780,580 | 8,889,773 | 1,366,473 | 1,348,719 | | Segment Liabilities | 4,799,278 | 4,865,659 | 21,617 | 20,870 | - **Segment assets exclude** goodwill, unallocated investments in associates, financial assets at fair value through profit or loss, cash and cash equivalents, pledged deposits, and other unallocated head office and corporate assets[13](index=13&type=chunk) - **Segment liabilities exclude** interest-bearing bank borrowings and other unallocated head office and corporate liabilities[13](index=13&type=chunk) [Revenue Breakdown](index=10&type=section&id=Revenue%20Breakdown) In H1 2025, integrated medical services revenue was RMB 4.2

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。 Seacon Shipping Group Holdings Limited 洲際船務集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2409） 截至2025年6月30日止六個月 中期業績 洲際船務集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其 附屬公司（統稱「本集團」）截至2025年6月30日止六個月（「本期間」或「期內」）未經審計簡 明合併中期業績，連同截至2024年6月30日止六個月的比較數字。 於本公告內，「我們」指本公司，惟倘文義另有所指，則指本集團。 – 1 – 簡明合併損益表 截至2025年6月30日止六個月 | | | 未經審計 | | | --- | --- | --- | --- | | | | 截至6月30日止六個月 | | | | 附註 | 2025年 | 2024年 | | | | 千美元 | 千美元 | | 收入 | 4 | ...

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佈全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司 ） （股份代 號：8112） 截至2025年6月30日止六個月 中期業績公佈 基石金融控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其附屬 公司截至2025年6月30日止六個月的未經審核業績。本公佈載有本公司截至2025年6月30日止 六個月的中期報告（「 2025年中期報告」）全文，並遵守香港聯合交易所有限公司（「聯交所」） GEM證券上市規則（「 GEM上市規則」）有關中期業績初步公佈附載資料的相關規定。根據 GEM上市規則的相關規定，2025年中期報告將於本公司網站(www.cs8112.com)及聯交所網站 (www.hkexnews.hk)刊載，而其印刷本亦將於適當時候寄發予以書面提出有關要求的本公司股 東。 承董事會命 基石金融控股有限公司 主席兼執行董事 凡彥迪 香港，2025年8月26日 於本公佈日期，董事會成員如下：凡彥迪女士（ ...

[Performance Highlights](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) This section presents key financial and operational highlights for the six months ended June 30, 2025, reflecting significant declines in revenue and increased losses Six Months Ended June 30, 2025 Key Financial and Operating Data | Indicator | Six Months Ended June 30, 2025 (CNY) | Change from Prior Period | | :--- | :--- | :--- | | Contracted Sales (Group and Joint Ventures/Associates) | 23.55 billion | - | | Attributable Land Reserve (Group and Joint Ventures/Associates) | 86.24 million sq.m. | - | | Unsold Attributable Land Reserve (Group and Joint Ventures/Associates) | 63.06 million sq.m. | - | | Revenue | 19.99 billion | Decreased by approximately 41.7% | | Gross Loss | 2.08 billion | Loss increased by approximately 14.9% | | Loss Attributable to Owners of the Company | 12.81 billion | Loss decreased by approximately 14.4% | | Total Equity | 44.88 billion | - | | Equity Attributable to Owners of the Company | 30.85 billion | - | | Total Borrowings | 254.82 billion | Decreased by approximately 4.85 billion from year-end | [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This section presents the interim condensed consolidated statement of comprehensive income for the six months ended June 30, 2025 and 2024, detailing revenue, costs, and losses Interim Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30 | Indicator | 2025 (thousand CNY) | 2024 (thousand CNY) | | :--- | :--- | :--- | | Revenue | 19,987,601 | 34,279,616 | | Cost of Sales | (22,071,876) | (36,088,266) | | Gross Loss | (2,084,275) | (1,808,650) | | Other Income and Gains | 5,614,027 | 2,529,694 | | Selling and Marketing Costs | (1,086,906) | (1,113,005) | | Administrative Expenses | (1,687,102) | (1,780,002) | | Other Expenses and Losses | (7,543,512) | (6,398,392) | | Net Impairment Losses Under Expected Credit Loss Model | (1,248,503) | (1,110,822) | | Operating Loss | (8,036,271) | (9,681,177) | | Finance Income | 45,348 | 102,795 | | Finance Costs | (5,290,724) | (6,486,933) | | Net Finance Costs | (5,245,376) | (6,384,138) | | Share of Net Loss of Joint Ventures and Associates Accounted for Using the Equity Method | (285,412) | (1,296,787) | | Loss Before Income Tax | (13,567,059) | (17,362,102) | | Income Tax Credit | 689,210 | 697,076 | | Loss for the Period and Total Comprehensive Loss | (12,877,849) | (16,665,026) | Loss Per Share Attributable to Owners of the Company | Indicator | 2025 (CNY) | 2024 (CNY) | | :--- | :--- | :--- | | Basic Loss Per Share | (1.26) | (1.79) | | Diluted Loss Per Share | (1.26) | (1.79) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) This section provides the interim condensed consolidated statement of financial position as of June 30, 2025 and December 31, 2024, outlining assets, equity, and liabilities Consolidated Statement of Financial Position as of June 30, 2025 | Indicator | June 30, 2025 (thousand CNY) | December 31, 2024 (thousand CNY) | | :--- | :--- | :--- | | **ASSETS** | | | | Total Non-current Assets | 185,865,452 | 193,416,085 | | Total Current Assets | 664,952,408 | 689,467,066 | | Total Assets | 850,817,860 | 882,883,151 | | **EQUITY AND LIABILITIES** | | | | Equity Attributable to Owners of the Company | 30,851,724 | 40,521,108 | | Non-controlling Interests | 14,024,220 | 14,625,260 | | Total Equity | 44,875,944 | 55,146,368 | | Total Non-current Liabilities | 46,894,224 | 84,749,731 | | Total Current Liabilities | 759,047,692 | 742,987,052 | | Total Liabilities | 805,941,916 | 827,736,783 | | Total Equity and Liabilities | 850,817,860 | 882,883,151 | [Notes](index=6&type=section&id=%E9%99%84%E8%A8%BB) This section details the accounting policies, segment information, and specific financial items, providing context to the interim financial statements [1 General Information](index=6&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) This section describes the company's principal activities, incorporation details, listing status, and presentation currency - The Group is principally engaged in property development and investment, culture and tourism city construction and operation, property management services, and other businesses in China[10](index=10&type=chunk) - The Company is a limited liability company incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk)[11](index=11&type=chunk) - This interim condensed consolidated financial information is presented in Renminbi (RMB)[12](index=12&type=chunk) [2 Accounting Policies](index=6&type=section&id=2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This section outlines the accounting policies adopted, the impact of new standards, and significant uncertainties regarding the group's ability to continue as a going concern - The Group first applied "Lack of Exchangeability – Amendments to HKAS 21 and HKFRS 1" for the annual reporting period beginning January 1, 2025, with no significant impact on amounts recognized in prior and current periods[14](index=14&type=chunk) - The Group is evaluating several new standards, amendments, and interpretations not yet mandatorily adopted, including those related to contracts for electricity produced from natural energy sources and amendments to classification and measurement of financial instruments, effective in 2026 or 2027[15](index=15&type=chunk)[16](index=16&type=chunk) - As of June 30, 2025, the Group reported a net loss of approximately **RMB12.88 billion**, net current liabilities of approximately **RMB94.10 billion**, and overdue borrowings totaling approximately **RMB112.49 billion**, indicating significant going concern uncertainties[17](index=17&type=chunk) - Management has implemented several plans and measures to alleviate liquidity pressure, including: a domestic debt restructuring plan that has been approved and partially executed through buybacks and share-based settlements; an offshore debt restructuring plan launched with over **75%** creditor support; loan extensions totaling approximately **RMB36.58 billion**; special "guaranteed delivery" loans, bank matching financing, and "white list project" financing totaling approximately **RMB38.56 billion**; active resolution of domestic litigation; organizational restructuring for cost control; accelerated property presales and cash collection; and full commitment to "guaranteed delivery" efforts[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - Despite management's plans, the Group's ability to continue as a going concern remains subject to significant uncertainties, including the successful advancement and completion of debt management measures (including offshore debt restructuring), successful resolution of major financial institution litigation, and successful achievement of sales targets and cash collection[21](index=21&type=chunk)[24](index=24&type=chunk) [3 Segment Information](index=9&type=section&id=3%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%

[Interim Financial Information](index=1&type=section&id=Item%20I.%20Interim%20Financial%20Information) This section presents the company's unaudited interim financial statements, including balance sheets, income statements, and detailed notes, for the period ended June 30, 2025 [Consolidated Balance Sheet](index=1&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets grew by 1.84% to 52.37 billion yuan, total liabilities slightly increased by 0.17%, and equity attributable to parent company shareholders rose by 3.11% Consolidated Balance Sheet Key Indicators (As of June 30, 2025) | Indicator | June 30, 2025 (yuan) | December 31, 2024 (yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 52,369,000,017 | 51,420,385,832 | +1.84% | | Total Current Assets | 25,231,540,217 | 25,188,915,561 | +0.17% | | Total Non-current Assets | 27,137,459,800 | 26,231,470,271 | +3.46% | | Total Liabilities | 21,598,596,081 | 21,560,843,821 | +0.17% | | Total Equity Attributable to Parent Company Shareholders | 29,962,756,389 | 29,060,384,527 | +3.11% | - Trading financial assets significantly increased from **2.022 billion yuan** at the end of 2024 to **5.179 billion yuan** as of June 30, 2025[5](index=5&type=chunk) - Inventories decreased by approximately **42%** from **3.576 billion yuan** at the end of 2024 to **2.073 billion yuan** as of June 30, 2025[5](index=5&type=chunk) [Consolidated Income Statement](index=3&type=section&id=Consolidated%20Income%20Statement) In H1 2025, operating revenue grew by 2.11% to 20.49 billion yuan, and net profit attributable to parent company shareholders increased by 7.21% to 3.90 billion yuan Consolidated Income Statement Key Indicators (For the 6 Months Ended June 30, 2025) | Indicator | 2025 (yuan) | 2024 (yuan) | YoY Change Rate | | :--- | :--- | :--- | :--- | | Operating Revenue | 20,491,167,745 | 20,068,307,930 | +2.11% | | Operating Cost | 11,537,070,863 | 11,719,203,916 | -1.55% | | Operating Profit | 5,250,345,312 | 4,912,043,695 | +6.89% | | Total Profit | 5,263,157,400 | 4,909,634,563 | +7.20% | | Net Profit | 3,973,966,318 | 3,721,128,752 | +6.79% | | Net Profit Attributable to Parent Company Shareholders | 3,904,325,353 | 3,641,652,772 | +7.21% | | Basic Earnings Per Share (yuan) | 2.862 | 2.672 | +7.11% | - Finance expenses shifted from a net expenditure of **291 million yuan** in H1 2024 to a net income of **208 million yuan** in H1 2025, primarily due to reduced interest income offset by a significant decrease in interest expenses[8](index=8&type=chunk) - Asset disposal gains significantly improved from a loss of **0.1895 million yuan** in H1 2024 to a gain of **112 million yuan** in H1 2025[8](index=8&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides supplementary information on the basis of preparation, significant accounting policies, major account changes, and segment reporting to enhance understanding of the company's financial position and operating results [Basis of Preparation and Accounting Policies](index=5&type=section&id=1%20Basis%20of%20Preparation%20of%20Financial%20Statements) The financial statements are prepared in accordance with Chinese accounting standards and comply with Hong Kong listing rules, based on a going concern assumption - The financial statements are prepared in accordance with Chinese Enterprise Accounting Standards and relevant regulations, complying with the Hong Kong Companies Ordinance and the Listing Rules of The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - There were no significant changes in accounting policies during the period[11](index=11&type=chunk) - The financial statements are prepared on a going concern basis[10](index=10&type=chunk) [Accounts Receivable](index=5&type=section&id=2%20Accounts%20Receivable) Accounts receivable net increased significantly due to a reduction in bad debt provisions, with most sales conducted via prepayment or bank acceptance bills Accounts Receivable Movement (yuan) | Indicator | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Gross Accounts Receivable | 321,141,080 | 269,289,669 | | Less: Provision for Bad Debts | 152,203,496 | 166,869,322 | | Net Accounts Receivable | 168,937,584 | 102,420,347 | - Net accounts receivable increased by **64.96%** year-on-year, primarily due to a reduction in bad debt provisions[12](index=12&type=chunk) - Most sales are conducted via prepayments or bank acceptance bills, with remaining sales having credit terms of **30-100 days**[13](index=13&type=chunk) [Accounts Payable](index=6&type=section&id=3%20Accounts%20Payable) Total accounts payable increased by 41.5% from the end of 2024, predominantly comprising balances due within one year Accounts Payable Aging Analysis (yuan) | Aging | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Within one year | 4,316,088,763 | 3,046,919,946 | | Total | 4,320,829,644 | 3,053,514,829 | - Total accounts payable increased by **41.5%** compared to the end of 2024, primarily concentrated within one year[16](index=16&type=chunk) [Employee Benefits Payable](index=6&type=section&id=4%20Employee%20Benefits%20Payable) Total employee benefits payable slightly increased, with short-term compensation remaining the primary component Composition of Employee Benefits Payable (yuan) | Item | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Short-term compensation | 1,572,951,082 | 1,545,440,415 | | Defined contribution plans | 22,628,965 | 22,713,634 | | Termination benefits | 188,585,731 | 198,633,651 | | Total | 1,784,165,778 | 1,766,787,700 | - Total employee benefits payable slightly increased, with short-term compensation being the main component[18](index=18&type=chunk) [Dividends](index=6&type=section&id=5%20Dividends) The company resolved to distribute a 2024 annual cash dividend of 2.20 yuan per share, totaling 3.001 billion yuan, with no interim dividend declared for H1 2025 - On May 20, 2025, the company resolved to distribute a 2024 annual cash dividend of **2.20 yuan** per share (tax inclusive), totaling **3.001 billion yuan**, which is higher than the **2.00 yuan** per share for 2023[19](index=19&type=chunk) - The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025[19](index=19&type=chunk) [Operating Revenue and Operating Cost](index=7&type=section&id=6%20Operating%20Revenue%20and%20Operating%20Cost) Main business revenue increased by 1.95% while its cost decreased by 1.73%, indicating improved profitability in core operations Composition of Operating Revenue (yuan) | Item | For the 6 Months Ended June 30, 2025 (yuan) | For the 6 Months Ended June 30, 2024 (yuan) | | :--- | :--- | :--- | | Main business revenue | 20,214,060,489 | 19,828,139,761 | | Other business revenue | 277,107,256 | 240,168,169 | | Total | 20,491,167,745 | 20,068,307,930 | Composition of Operating Cost (yuan) | Item | For the 6 Months Ended June 30, 2025 (yuan) | For the 6 Months Ended June 30, 2024 (yuan) | | :--- | :--- | :--- | | Main business cost | 11,387,010,424 | 11,587,189,408 | | Other business cost | 150,060,439 | 132,014,508 | | Total | 11,537,070,863 | 11,719,203,916 | - Main business revenue increased by **1.95%** year-on-year, while other business revenue grew by **15.38%** year-on-year[20](index=20&type=chunk) - Main business cost decreased by **1.73%** year-on-year, while other business cost increased by **13.67%** year-on-year[20](index=20&type=chunk) [Taxes and Surcharges](index=7&type=section&id=7%20Taxes%20and%20Surcharges) Total taxes and surcharges increased by 3.90% year-on-year, with consumption tax remaining the largest component Composition of Taxes and Surcharges (yuan) | Item | For the 6 Months Ended June 30, 2025 (yuan) | For the 6 Months Ended June 30, 2024 (yuan) | | :--- | :--- | :--- | | Consumption tax | 1,007,381,854 | 977,460,694 | | Urban maintenance and construction tax | 170,687,029 | 159,803,339 | | Education surcharge | 126,487,782 | 118,494,928 | | Total | 1,398,844,628 | 1,344,517,938 | - Total taxes and surcharges increased by **3.90%** year-on-year, with consumption tax remaining the largest component, growing by **3.06%** year-on-year[20](index=20&type=chunk) [Gains (Losses) on Disposal of Assets](index=8&type=section&id=8%20Gains%20(Losses)%20on%20Disposal%20of%20Assets) The company reported a significant turnaround in asset disposal from a loss to a gain of 112 million yuan, primarily driven by intangible asset disposals Composition of Gains (Losses) on Disposal of Assets (yuan) | Item | For the 6 Months Ended June 30, 2025 (yuan) | For the 6 Months Ended June 30, 2024 (yuan) | | :--- | :--- | :--- | | Gains (losses) on disposal of intangible assets | 107,855,591 | (27,783) | | Gains (losses) on disposal of fixed assets | 4,122,784 | (93,110) | | Gains (losses) on disposal of right-of-use assets | 127,195 | (68,614) | | Total | 112,105,570 | (189,507) | - Asset disposal gains turned from a loss in the prior period to a gain of **112 million yuan** this period, primarily due to a significant increase in gains from intangible asset disposals[21](index=21&type=chunk) [Income Tax Expense](index=8&type=section&id=9%20Income%20Tax%20Expense) Income tax expense increased by 8.47% year-on-year, with varying corporate income tax rates applied across different regions Composition of Income Tax Expense (yuan) | Item | For the 6 Months Ended June 30, 2025 (yuan) | For the 6 Months Ended June 30, 2024 (yuan) | | :--- | :--- | :--- | | China corporate income tax | 1,471,708,910 | 1,272,698,843 | | Hong Kong profits tax | 12,490,144 | 802,417 | | Macau complementary income tax | 228,102 | 317,026 | | Deferred income tax | (195,236,074) | (85,312,475) | | Total | 1,289,191,082 | 1,188,505,811 | - Income tax expense increased by **8.47%** year-on-year[21](index=21&type=chunk) - Mainland China subsidiaries are subject to corporate income tax rates ranging from **15% to 25%**, while Hong Kong, Macau, and Vietnam subsidiaries apply local tax rates (Hong Kong **16.5%**, Macau **3%-12%**, Vietnam **20%**)[22](index=22&type=chunk)[23](index=23&type=chunk) [Earnings Per Share](index=9&type=section&id=10%20Earnings%20Per%20Share) Both basic and diluted earnings per share increased year-on-year, with no dilutive effect from the restricted share incentive plan in H1 2025 Earnings Per Share (yuan/share) | Indicator | For the 6 Months Ended June 30, 2025 (yuan/share) | For the 6 Months Ended June 30, 2024 (yuan/share) | | :--- | :--- | :--- | | Basic earnings per share | 2.862 | 2.672 | | Diluted earnings per share | 2.862 | 2.672 | - Both basic and diluted earnings per share increased compared to the same period last year[24](index=24&type=chunk)[25](index=25&type=chunk) - The restricted share incentive plan had no dilutive effect on earnings per share for the six months ended June 30, 2025[25](index=25&type=chunk) [Segment Reporting](index=10&type=section&id=11%20Segment%20Reporting) The company's operations are divided into seven reporting segments based on regional sales and financial services, with Shandong region being the largest contributor to revenue and profit - The company's main businesses are divided into seven reporting segments: Shandong region, South China region, North China region, East China region, Southeast region, Hong Kong, Macau and other overseas regions, and the finance company[29](index=29&type=chunk) - Each segment is managed independently, based on regional sales and financial services[26](index=26&type=chunk) H1 2025 External Transaction Revenue and Total Profit by Segment (yuan) | Segment | External Transaction Revenue (yuan) | Total Profit (yuan) | | :--- | :--- | :--- | | Shandong region | 13,108,585,144 | 3,314,897,898 | | South China region | 1,458,599,511 | 372,121,343 | | North China region | 3,820,155,114 | 1,152,848,610 | | East China region | 1,457,721,006 | 285,557,898 | | Southeast region | 353,760,372 | (21,230,776) | | Hong Kong, Macau and other overseas regions | 286,794,974 | 80,492,904 | | Finance company | 196,451 | 122,252,031 | - External transaction revenue from Mainland China was **20.178 billion yuan**, Hong Kong and Macau regions **0.084 billion yuan**, and other overseas countries and regions **0.229 billion yuan**[32](index=32&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Item%20III.%20Management%20Discussion%20and%20Analysis) This section provides an overview of the company's operating performance, market conditions, and strategic initiatives during the reporting period [Overall Operating Performance](index=15&type=section&id=(I)%20Description%20of%20the%20Company's%20Overall%20Operating%20Performance%20During%20the%20Reporting%20Period) In H1 2025, despite a slight industry decline, the company achieved robust growth in sales, revenue, and net profit through product structure optimization, operational efficiency, and market expansion - Production by domestic beer industry enterprises above designated size declined by **0.3%** year-on-year[34](index=34&type=chunk) H1 2025 Key Operating Indicators | Indicator | Value | YoY Growth | | :--- | :--- | :--- | | Product Sales Volume | 4,732 thousand kiloliters | 2.3% | | Operating Revenue | 20.49 billion yuan | 2.1% | | Net Profit Attributable to Listed Company Shareholders | 3.90 billion yuan | 7.2% | - Tsingtao Beer's main brand product sales volume reached **2,713 thousand kiloliters**, a **3.9%** year-on-year increase; among which, sales of mid-to-high-end products grew by **5.1%** to **1,992 thousand kiloliters**[36](index=36&type=chunk) - The company continued to deeply cultivate the domestic market, consolidating its advantages in traditional base markets, with the three strategic belt markets achieving both volume and profit growth[34](index=34&type=chunk) - Online channels deepened operations on traditional platforms, focusing on new media and new channels; instant retail business strengthened the layout of new formats like flash warehouses and specialized liquor stores, achieving high transaction growth for **5 consecutive years**[35](index=35&type=chunk) - Accelerated cultivation of major single products and innovative category products, launching several distinctive products such as "Light Dry," "Sakura Flavored White Beer," and "Hazy IPA"[36](index=36&type=chunk) [Analysis of Core Competencies](index=16&type=section&id=(II)%20Analysis%20of%20Core%20Competencies) There were no changes to the company's core competencies, development strategies, or operating plans during the reporting period, with further details available in the 2024 annual report - There were no changes to the company's core competencies, future development strategies, and operating plans[37](index=37&type=chunk) - For related details, please refer to the company's 2024 annual report[37](index=37&type=chunk) [Significant Matters](index=16&type=section&id=Item%20IV.%20Significant%20Matters) This section covers key events during the reporting period, including the unlocking of restricted shares, changes in the Board of Directors, and the abolition of the Supervisory Board [Unlocking and Listing of Restricted Shares under Incentive Plan](index=16&type=section&id=(I)%20Unlocking%20and%20Listing%20of%20Restricted%20Shares%20under%20Incentive%20Plan) The third unlocking period conditions for A-share restricted shares were met, leading to 95,000 shares held by 32 grantees being unlocked and listed on May 30, 2025 - The conditions for the third unlocking period of restricted shares granted under the A-share restricted share incentive plan have been met[38](index=38&type=chunk) - A total of **95,000** restricted shares held by **32** grantees were unlocked and listed for trading on May 30, 2025[38](index=38&type=chunk) [Completion of Board of Directors Re-election and Abolition of Supervisory Board](index=17&type=section&id=(II)%20Completion%20of%20Board%20of%20Directors%20Re-election%20and%20Abolition%20of%20Supervisory%20Board) On May 20, 2025, the company completed the re-election of its Eleventh Board of Directors and abolished the Supervisory Board, with its functions transferred to the Audit and Internal Control Committee - The company held its annual general meeting on May 20, 2025, completing the re-election of the Eleventh Board of Directors[40](index=40&type=chunk) - Jiang Zongxiang, Liu Fuhua, and Hou Qiuyan were elected Executive Directors; Sun Jing was elected Employee Director; Xiao Geng, Sheng Leiming, Zhang Ran, Zhao Changwen, and Zhao Hong were elected Independent Non-executive Directors[40](index=40&type=chunk) - In accordance with the new Chinese Company Law, the company abolished the Supervisory Board, and its functions are now exercised by the Audit and Internal Control Committee[40](index=40&type=chunk) [Other Significant Matters](index=17&type=section&id=(III)%20Other) No significant litigation, arbitration, or transactions involving the purchase, sale, or redemption of listed securities occurred during or after the reporting period - During the reporting period, the company was not involved in any newly arising significant litigation or arbitration matters[42](index=42&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[43](index=43&type=chunk) [Review of Unaudited Interim Results](index=18&type=section&id=Item%20V.%20Review%20of%20Unaudited%20Interim%20Results) This section confirms the review of the company's unaudited interim financial performance by the Board's Audit and Internal Control Committee [Board Review](index=18&type=section&id=Board%20Review) The Board's Audit and Internal Control Committee has reviewed the company's unaudited interim results for 2025 - The Board's Audit and Internal Control Committee has reviewed the company's unaudited 2025 interim results[44](index=44&type=chunk) [Corporate Governance Code](index=18&type=section&id=Item%20VI.%20Corporate%20Governance%20Code) This section details the company's adherence to the Corporate Governance Code, noting specific deviations and the rationale behind them [Compliance with Corporate Governance Code](index=18&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company generally complied with the Corporate Governance Code, with two noted deviations regarding director rotation (now compliant) and the combined roles of Chairman and CEO - The company has complied with the code provisions in Part 2 of the Corporate Governance Code set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited, except for deviations from code provisions B.2.2 and C.2.1[45](index=45&type=chunk) - The deviation from code provision B.2.2 (rotation of directors) has been rectified and complied with following the appointment of the new Board of Directors on May 20, 2025[45](index=45&type=chunk) - There is a deviation from code provision C.2.1 (separation of roles of Chairman and Chief Executive Officer), as Executive Director Mr. Jiang Zongxiang serves concurrently as both Chairman and President of the company[46](index=46&type=chunk) - The Board believes that under the supervision of other existing members, the Board has an appropriate balance of power structure that provides sufficient checks and balances to safeguard the interests of the company and its shareholders[46](index=46&type=chunk)

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) During the reporting period, the company's revenue decreased, but it turned from a loss to a profit, primarily due to changes in the fair value of financial assets, with earnings per share also shifting from negative to positive Financial Highlights (Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Revenue | 9,965,780 | 12,837,676 | | Profit / (Loss) Attributable to Owners of the Company | 18,665,567 | (21,252,620) | | Earnings / (Loss) Per Share - Basic and Diluted (HK cents per share) | 1.63 | (1.86) | [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, and statement of changes in equity, reflecting significant financial improvement from a loss to a profit during the period [Condensed Consolidated Interim 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%E4%B8%AD%E6%9C%9F%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group achieved a profit of **HKD 18,665,567** for the six months ended June 30, 2025, compared to a loss of **HKD 21,252,620** in the prior period, primarily driven by significant changes in other gains and losses from financial asset fair value, with total revenue decreasing by approximately **22%** year-on-year Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Revenue | 9,965,780 | 12,837,676 | | Other income | 156,111 | 426,421 | | Other gains and losses | 24,125,818 | (13,117,594) | | Profit / (Loss) before tax | 18,665,567 | (21,252,620) | | Profit / (Loss) for the period | 18,665,567 | (21,252,620) | | Total comprehensive income / (expense) for the period | 18,979,860 | (21,413,626) | - The profit for the period is primarily attributable to the change in fair value of financial assets from a loss to a profit[4](index=4&type=chunk) [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%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 less current liabilities increased to **HKD 364,222,487**, mainly due to the increase in fair value of financial assets, with investment properties and financial assets constituting a significant portion of non-current assets, and a healthy current ratio maintained at **3.59** Condensed Consolidated Interim Statement of Financial Position (As of June 30) | Indicator | 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 1,727,574 | 3,517,094 | | Right-of-use assets | 1,590,175 | 2,936,598 | | Investment properties | 207,900,000 | 207,900,000 | | Interests in associates | 755,044 | 2,264,169 | | Financial assets measured at fair value through profit or loss | 128,728,549 | 104,572,157 | | **Current assets** | | | | Inventories | 107,991 | 147,033 | | Trade and other receivables | 1,140,945 | 1,323,708 | | Cash and bank balances | 31,362,512 | 31,569,868 | | **Current liabilities** | | | | Trade and other payables | 8,386,490 | 7,776,732 | | Lease liabilities | 703,813 | 1,032,334 | | Net current assets | 23,521,145 | 24,231,543 | | Total assets less current liabilities | 364,222,487 | 345,421,561 | | Total equity | 364,222,487 | 345,242,627 | [Condensed Consolidated Interim Statement of Changes in Equity](index=6&type=section&id=%E7%B0%A1%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, the company's total equity increased to **HKD 364,222,487**, primarily due to the profit for the period and an increase in exchange reserves, reversing the total comprehensive expenses of the prior year Condensed Consolidated Interim Statement of Changes in Equity (Six Months Ended June 30) | Indicator | Share Capital (HKD) | Exchange Reserve (HKD) | Accumulated Losses (HKD) | Total (HKD) | | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 (audited) | 898,839,029 | (12,995,258) | (540,601,144) | 345,242,627 | | Profit for the period | – | – | 18,665,567 | 18,665,567 | | Other comprehensive income for the period | – | 314,293 | – | 314,293 | | Total comprehensive income for the period | – | 314,293 | 18,665,567 | 18,979,860 | | As of June 30, 2025 (unaudited) | 898,839,029 | (12,680,965) | (521,935,577) | 364,222,487 | | As of January 1, 2024 (audited) | 898,839,029 | (12,426,542) | (507,493,001) | 378,919,486 | | Loss for the period | – | – | (21,252,620) | (21,252,620) | | Other comprehensive expenses for the period | – | (161,006) | – | (161,006) | | Total comprehensive expenses for the period | – | (161,006) | (21,252,620) | (21,413,626) | | As of June 30, 2024 (unaudited) | 898,839,029 | (12,587,548) | (528,745,621) | 357,505,860 | [Notes to the Condensed Consolidated Interim Financial Statements](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation, accounting policies, impact of new standards, composition and changes of financial statement items, and related party transactions, providing essential context and details for understanding the Group's interim financial statements [General Information](index=7&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%9

[Financial Statements](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group experienced significant declines in revenue and gross profit, shifting from profit to a substantially widened operating and period loss | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 23,570 | 36,584 | -35.6% | | Cost of sales | (21,168) | (31,315) | -32.4% | | Gross profit | 2,402 | 5,269 | -54.5% | | Operating loss | (7,176) | (1,584) | +353.0% | | Loss for the period | (7,802) | (2,542) | +206.9% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's total comprehensive loss for the period significantly increased, driven by an expanded period loss and a shift from foreign exchange gains to losses on overseas operations | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period | (7,802) | (2,542) | +206.9% | | Exchange differences on translation of overseas operations | (76) | 1,013 | -107.5% | | Total comprehensive loss for the period | (7,878) | (1,529) | +415.2% | | Loss attributable to owners of the Company | (7,852) | (2,760) | +184.5% | | Basic loss per share (RMB) | (0.013) | (0.005) | +160.0% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total and net assets significantly declined, net current liabilities increased, total equity substantially decreased, and the gearing ratio rose sharply | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 75,797 | 79,140 | -4.2% | | Current assets | 168,956 | 187,424 | -9.8% | | Current liabilities | 234,295 | 246,788 | -5.1% | | Net current liabilities | (65,339) | (59,364) | +10.1% | | Net assets | 1,777 | 9,655 | -81.6% | | Total equity | 1,777 | 9,655 | -81.6% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1. General Information](index=6&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) China New Energy Limited, registered in Jersey and listed on the HKEX, primarily provides integrated technical services for ethanol production systems in China's ethanol fuel and alcoholic beverage sectors - The Company was incorporated in Jersey on May 2, 2006, with shares listed on the Hong Kong Stock Exchange since July 15, 2020[9](index=9&type=chunk) - The principal business involves providing integrated technical services for ethanol production systems in the ethanol fuel and alcoholic beverage industries within the People's Republic of China[9](index=9&type=chunk) - The condensed consolidated interim financial statements are presented in RMB and were approved for issue by the Board of Directors on August 26, 2025[9](index=9&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated financial statements are prepared under IAS 34, emphasizing significant going concern uncertainties despite board measures and major shareholder support - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[10](index=10&type=chunk) - As of June 30, 2025, the Group recorded a net loss of approximately **RMB 7,802,000**, and net current liabilities exceeding current assets by approximately **RMB 65,339,000**, indicating a material uncertainty regarding going concern[11](index=11&type=chunk) - The Board has taken measures to mitigate liquidity pressure, including financial support from a major shareholder, negotiating loan extensions with lenders, reducing expenses and capital expenditures, and anticipating positive cash flows in the future[12](index=12&type=chunk)[14](index=14&type=chunk) [3. Principal Accounting Policies](index=8&type=section&id=3.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared using the historical cost convention, with the first-time application of IAS 21 (Amendment) 'Lack of Exchangeability' having no material impact - The condensed consolidated financial statements are prepared on the historical cost basis, except for certain financial instruments measured at fair value[15](index=15&type=chunk) - The first-time application of IAS 21 (Amendment) "Lack of Exchangeability" during this interim period had no significant impact on the Group's financial position and performance[16](index=16&type=chunk) [4. Segment Information](index=8&type=section&id=4.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Management reviews the Group's business as a single segment, providing integrated technical services for ethanol production systems in various sectors, with all non-current assets located in China - Management reviews the operating results of the business as one segment, considering there is only one segment for making strategic decisions[17](index=17&type=chunk) - The Group primarily provides integrated technical services for ethanol production systems in the ethanol fuel and alcoholic beverage industries, and for medical and industrial ethyl acetate related projects[17](index=17&type=chunk) - As of December 31, 2024, and June 30, 2025, all non-current assets were located in the People's Republic of China[18](index=18&type=chunk) [5. Revenue, Contract Assets and Contract Liabilities](index=9&type=section&id=5.%20%E7%87%9F%E6%A5%AD%E9%A1%8D%E2%88%95%E5%90%88%E5%90%8C%E8%B3%87%E7%94%A2%E5%8F%8A%E5%90%88%E5%90%8C%E8%B2%A0%E5%82%B5) In H1 2025, revenue decreased by 35.6% year-on-year, primarily from ethanol fuel, alcoholic beverage, and ethyl acetate projects, with China contributing most revenue, while net contract assets and liabilities declined Revenue by Source | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Ethanol fuel industry | 12,709 | 24,825 | -48.8% | | Alcoholic beverage industry | 3,066 | 9,638 | -68.2% | | Others (Ethyl acetate related) | 7,795 | 2,121 | +267.5% | | **Total** | **23,570** | **36,584** | **-35.6%** | Revenue by Geographical Market | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | China | 23,480 | 35,812 | -34.4% | | Other countries | 90 | 772 | -88.3% | | **Total** | **23,570** | **36,584** | **-35.6%** | Contract Assets and Liabilities | Customer Contract Related Assets and Liabilities | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Contract assets - net | 134,327 | 148,905 | -9.8% | | Contract liabilities | 33,832 | 36,190 | -6.5% | [6. Income Tax Credit](index=11&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D) In H1 2025, a deferred income tax credit of RMB 89 thousand was recognized, mainly from leases, with no tax provision for Hong Kong and Jersey, and a 15% preferential rate for the main PRC subsidiary Income Tax Credit Summary | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Deferred income tax credit | 89 | – | | **Total income tax credit** | **89** | **–** | - Guangdong Zhongke Tianyuan New Energy Technology Co., Ltd., a principal subsidiary, was certified as a "High-tech Enterprise" in 2022, enjoying a preferential income tax rate of **15%**[25](index=25&type=chunk) - The Company's income tax rate in Jersey is zero percent, and no provision for Hong Kong tax has been made as no income was generated in Hong Kong[24](index=24&type=chunk)[26](index=26&type=chunk) [7. Loss Per Share](index=12&type=section&id=7.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) Basic loss per share for H1 2025 widened to RMB 0.013 from RMB 0.005 in the prior period, primarily due to an increased loss attributable to owners of the Company Basic Loss Per Share | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (7,852) | (2,760) | | Weighted average number of ordinary shares in issue (thousands of shares) | 589,759 | 589,759 | | **Basic loss per share (RMB)** | **(0.013)** | **(0.005)** | - Diluted loss per share is not presented as there were no outstanding potential ordinary shares in either period[29](index=29&type=chunk) [8. Dividends](index=12&type=section&id=8.%20%E8%82%A1%E6%81%AF) During the reporting period, the Company neither declared nor paid any dividends - For the periods ended June 30, 2024, and 2025, the Company neither declared nor paid any dividends[30](index=30&type=chunk) [9. Trade and Bills Receivables](index=13&type=section&id=9.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, net trade and bills receivables decreased by 31.6% year-on-year, with most balances aged within one year Trade and Bills Receivables Summary | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net trade and bills receivables | 9,202 | 13,448 | -31.6% | Ageing Analysis of Trade and Bills Receivables (June 30, 2025) | Ageing Analysis (June 30, 2025) | Amount (RMB thousands) | | :--- | :--- | | Within 1 year | 9,088 | | 1 to 2 years | 114 | | 2 to 3 years | – | | **Total** | **9,202** | [10. Trade and Other Payables](index=14&type=section&id=10.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%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, trade payables decreased by 10.4% year-on-year, with the largest portion aged over three years, while total other payables remained stable Trade and Other Payables Summary | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 55,853 | 62,260 | -10.4% | | Other payables and accrued expenses | 30,518 | 28,352 | +7.6% | | Amounts due to directors | 1,438 | 615 | +133.8% | | Accrued salaries | 5,667 | 6,211 | -8.7% | | VAT payable | 40,819 | 36,889 | +10.6% | | **Total** | **134,295** | **134,327** | **0.0%** | Ageing Analysis of Trade Payables (June 30, 2025) | Trade Payables Ageing (June 30, 2025) | Amount (RMB thousands) | | :--- | :--- | | Within 1 year | 23,910 | | 1 to 2 years | 4,183 | | 2 to 3 years | 2,342 | | Over 3 years | 25,418 | | **Total** | **55,853** | [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) As a leading ethanol system producer, the Company faced challenges in H1 2025 from declining domestic fuel ethanol consumption, intensified competition, and slow international project progress, leading to reduced revenue and profit, while actively adjusting strategies and increasing R&D - The Company is a leading ethanol system producer in China, primarily providing integrated core system services for ethanol production in the ethanol fuel and alcoholic beverage industries[34](index=34&type=chunk) - In H1 2025, domestic fuel ethanol consumption declined, supply exceeded demand, production enterprises faced cost pressure, and industry competition intensified; international potential projects progressed slowly due to geopolitical and tariff impacts[35](index=35&type=chunk)[36](index=36&type=chunk) - The Company actively recalibrated its marketing strategy, explored new markets such as baijiu concentration and impurity removal, and xanthan gum light alcohol recovery projects, and participated in coal-to-ethanol production line design, equipment installation, commissioning, and after-sales services[37](index=37&type=chunk) - During the reporting period, the Company signed **9 new contracts** with a total contract value (excluding VAT) of **RMB 31.86 million**, consistent with the same period last year[38](index=38&type=chunk) - R&D expenses amounted to **RMB 2.07 million** (H1 2024: RMB 1.44 million), primarily focused on biomass fuel projects and small-scale hydrogen production units[39](index=39&type=chunk) - The five largest ongoing projects generated revenue of **RMB 15.77 million**, accounting for **66.9%** of the Group's total revenue during the reporting period[40](index=40&type=chunk) [Future Outlook](index=17&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The Company plans to capitalize on biofuel opportunities under 'dual carbon' goals, consolidate domestic markets, expand overseas, and increase revenue by strengthening marketing, exploring related industry investments, and boosting R&D in advanced ethanol, hydrogen, and higher alcohol production technologies - China's "14th Five-Year Plan" explicitly proposes expanding biofuel applications, with a target fuel ethanol consumption of **12 million tons by 2025**, indicating significant long-term growth potential for the biofuel industry[41](index=41&type=chunk) - The Company will strengthen its marketing team, maintain existing clients, expand its new client portfolio, actively explore investment opportunities in related industries, and expand revenue from manufacturing and technical services for other chemical production equipment[41](index=41&type=chunk) - The Company will increase R&D investment in leading **1.5 and 2nd generation cellulosic ethanol production technologies**, hydrogen energy production technologies, ethanol deep processing for higher alcohol production processes, and related equipment manufacturing[43](index=43&type=chunk) - As of the end of the reporting period, the Company and its subsidiaries held a total of **35 valid registered patents**, including **19 invention patents**[43](index=43&type=chunk) [Financial Review](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, the Company's revenue, gross profit, and gross margin significantly decreased, associate performance turned to loss, leading to a substantial increase in loss attributable to owners, while administrative expenses and finance costs decreased, and income tax credit increased - Revenue decreased by **35.6%** from approximately **RMB 36.58 million** in H1 2024 to approximately **RMB 23.57 million** in H1 2025, primarily due to fewer sales contracts and slower progress on existing contract projects[44](index=44&type=chunk) - Gross profit decreased by **54.5%** from approximately **RMB 5.27 million** in H1 2024 to approximately **RMB 2.40 million** in H1 2025, with the overall gross margin decreasing from **14.4% to 10.2%**, mainly affected by market fluctuations[45](index=45&type=chunk) - Selling and marketing expenses decreased by **18.9%** to approximately **RMB 1.80 million**, and administrative expenses decreased by **12.6%** to approximately **RMB 7.59 million**, primarily due to cost control measures[46](index=46&type=chunk)[47](index=47&type=chunk) - Share of results of associates turned from a profit of approximately **RMB 0.99 million** in H1 2024 to a loss of approximately **RMB 1.25 million** in H1 2025, a decrease of **225.8%**, mainly due to the decline in operating performance of associates[48](index=48&type=chunk) - Net finance costs decreased by **25.4%** to approximately **RMB 0.72 million**, primarily referring to interest on bank borrowings and lease liabilities[50](index=50&type=chunk) - Income tax credit increased from **RMB 0** in H1 2024 to approximately **RMB 89,000** in 2025, due to deferred income tax credit arising from leases[51](index=51&type=chunk) - Loss attributable to owners of the Company expanded to approximately **RMB 7.85 million** (H1 2024: approximately RMB 2.76 million), mainly due to decreased revenue, lower gross margin, and reduced share of results of associates[52](index=52&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As of June 30, 2025, the Group's cash and cash equivalents significantly decreased, bank borrowings declined, but net current liabilities increased, total equity substantially reduced, leading to a sharp rise in the gearing ratio to 136.73% Liquidity and Capital Structure Summary | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 1.09 | 4.17 | -73.9% | | Bank borrowings | 21.34 | 32.23 | -33.8% | | Total equity | 1.78 | 9.66 | -81.6% | | Net current liabilities | 65.34 | 59.36 | +10.1% | | Current ratio | 0.72 times | Largely unchanged | - | | Gearing ratio | 136.73% | 26.60% | +413.9% | [Other Financial Information](index=20&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E4%BF%A1%E6%81%AF) During the reporting period, the Group reported no significant changes in capital expenditure, major acquisitions, disposals, investments, contingent liabilities, or capital commitments, with certain assets pledged for financing, insignificant foreign exchange risk, and no speculative derivative transactions - The Group's capital expenditure primarily includes intangible assets and expenses for acquiring property, plant, and equipment related to operations, with no significant changes during the reporting period[55](index=55&type=chunk) - In H1 2025, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any significant investments held outside its subsidiaries[56](index=56&type=chunk)[57](index=57&type=chunk) - As of June 30, 2025, the Group had no contingent liabilities or capital commitments[60](index=60&type=chunk)[62](index=62&type=chunk) - The right-of-use assets and buildings of the Company's subsidiaries have been pledged to banks as security for bank facilities granted to the Group[61](index=61&type=chunk) - The functional currency of the Group's operations, assets, and liabilities is RMB, and it does not face significant foreign exchange risk, nor does it use any financial instruments for hedging purposes[63](index=63&type=chunk) - The Group's treasury policy prohibits entering into derivative transactions for speculative purposes[64](index=64&type=chunk) [Employees and Remuneration Policy](index=22&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 had 84 full-time employees, whose skills are enhanced through customized training, with remuneration comprising salaries and bonuses determined by qualifications, position, and performance - As of June 30, 2025, the Group had **84 full-time employees** (December 31, 2024: 82 employees)[65](index=65&type=chunk) - The Group provides tailored training programs to employees aimed at enhancing their skills and knowledge[65](index=65&type=chunk) - Remuneration for employees generally includes salaries and bonuses, determined based on each employee's qualifications, position, and performance[65](index=65&type=chunk) [Other Information](index=22&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Corporate Governance Practices](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Company is committed to maintaining high corporate governance standards and confirmed compliance with all code provisions of the Corporate Governance Code in Appendix C1 Part 2 of the HKEX Listing Rules during the reporting period - The Company is committed to achieving and maintaining a high level of corporate governance to protect shareholders' interests and create long-term value[66](index=66&type=chunk) - The Directors believe that for the six months ended June 30, 2025, the Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[66](index=66&type=chunk) [Standard Code for Securities Transactions](index=22&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 Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules and confirmed directors' compliance with its requirements during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its own code of conduct[67](index=67&type=chunk) - Following specific enquiry, the Company confirmed that the Directors have complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[67](index=67&type=chunk) [Interim Dividends](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[68](index=68&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%8B%B8) During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held - During 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[69](index=69&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[69](index=69&type=chunk) [Review and Publication](index=23&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Group's interim results for the six months ended June 30, 2025, have been reviewed by the Company's Audit Committee and will be published on the HKEX and Company websites - The Group's interim results for the six months ended June 30, 2025, have been reviewed by the Company's Audit Committee, which comprises three independent non-executive directors[70](index=70&type=chunk) - This announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.zkty.com.cn)[71](index=71&type=chunk)