[Financial Summary](index=1&type=section&id=Financial%20Summary) [Key Financial and Operational Highlights](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights) Dexin Services Group Co., Ltd. faced challenges in the first half of 2025, with declines in revenue, profit, and gross margin, alongside decreases in GFA under management and contracted GFA, and no interim dividend recommended Key Financial and Operational Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 443.0 | 473.2 | -6.4% | | Gross Profit | 94.4 | 101.5 | -7.0% | | Gross Margin | 21.3% | 21.5% | -0.2% | | Profit | 34.6 | 42.5 | -18.6% | | Basic EPS | RMB 0.039 | RMB 0.045 | -13.3% | | GFA Under Management (million sq.m.) | 38.3 | 39.6 | -3.2% | | Contracted GFA (million sq.m.) | 41.4 | 44.8 | -7.7% | | Interim Dividend | None | None | - | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group experienced declines in both revenue and profit in H1 2025, primarily due to increased cost of sales, net other losses, and a significant reduction in finance income, resulting in an **18.6%** year-on-year decrease in profit for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 442,992 | 473,228 | -6.4% | | Cost of sales | (348,579) | (371,697) | -6.2% | | Gross profit | 94,413 | 101,531 | -7.0% | | Other income | 818 | 1,354 | -39.6% | | Net other (losses) / gains | (1,190) | 667 | -278.4% | | Selling and marketing expenses | (2,158) | (5,908) | -63.5% | | Administrative expenses | (31,698) | (39,748) | -20.2% | | Impairment loss on trade and other receivables | (13,239) | (10,964) | 20.8% | | Operating profit | 47,122 | 46,783 | 0.7% | | Net finance income | 401 | 9,056 | -95.6% | | Profit before tax | 47,523 | 55,839 | -14.9% | | Income tax expense | (12,879) | (13,355) | -3.6% | | Profit and total comprehensive income for the period | 34,644 | 42,484 | -18.6% | | Profit attributable to owners of the Company | 34,138 | 42,169 | -19.0% | | Basic earnings per share (RMB) | 0.039 | 0.045 | -13.3% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly decreased, and net current assets declined, but total assets less current liabilities and net assets both increased, indicating financial stability Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 177,335 | 39,747 | 346.1% | | Current assets | 1,210,915 | 1,301,360 | -7.0% | | Current liabilities | 653,348 | 640,874 | 2.0% | | Net current assets | 557,567 | 660,486 | -15.6% | | Total assets less current liabilities | 734,902 | 700,233 | 4.9% | | Non-current liabilities | 10,135 | 10,000 | 1.3% | | Net assets | 724,767 | 690,233 | 5.0% | | Total equity | 724,767 | 690,233 | 5.0% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [General Information and Accounting Policies](index=6&type=section&id=General%20Information%20and%20Accounting%20Policies) Dexin Services Group Co., Ltd. was incorporated in the Cayman Islands in 2020, listed on the HKEX in 2021, and primarily provides property management and value-added services in China; this period's financial statements adopt 2024 accounting policies and new HKFRS effective January 1, 2025, without significant changes - The Company was incorporated in the Cayman Islands on October 22, 2020, and listed on the Main Board of the Hong Kong Stock Exchange on July 15, 2021[9](index=9&type=chunk) - The Group is primarily engaged in providing property management services, non-owner value-added services, and community value-added services in China[9](index=9&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards in the current period did not result in significant changes to accounting policies, financial statement presentation, or reported amounts[11](index=11&type=chunk) [Revenue Breakdown](index=7&type=section&id=Revenue%20Breakdown) The Group's total revenue for H1 2025 was **RMB 443.0 million**, a **6.4%** year-on-year decrease, with property management services remaining the primary source, but non-owner and community value-added services revenue significantly declined Revenue by Service Type (For the six months ended June 30) | Service Type | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 408,417 | 413,438 | -1.2% | | Non-owner value-added services | 13,813 | 19,835 | -30.4% | | Community value-added services | 20,762 | 39,955 | -48.0% | | **Total** | **442,992** | **473,228** | **-6.4%** | Revenue by Timing of Recognition (For the six months ended June 30) | Timing of Recognition | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Over time | 438,676 | 452,535 | -3.0% | | At a point in time | 4,316 | 20,693 | -79.1% | | **Total** | **442,992** | **473,228** | **-6.4%** | - All of the Group's revenue is derived from China[14](index=14&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) Management reviews the Group's business operations as a single operating segment, with all revenue and non-current assets located in China - The Group is primarily engaged in providing property management services, community value-added services, and non-owner value-added services, which management reviews as a single operating segment[16](index=16&type=chunk) - All of the Group's revenue and non-current assets are located in China[16](index=16&type=chunk)[17](index=17&type=chunk) [Other Income and Expenses](index=8&type=section&id=Other%20Income%20and%20Expenses) The Group's other income, primarily from government grants, decreased in H1 2025, while net other losses significantly increased due to losses from derecognizing subsidiaries and associates Other Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Government grants | 721 | 1,141 | -36.9% | | VAT deductions | 97 | 213 | -54.4% | | **Total** | **818** | **1,354** | **-39.6%** | Net Other (Losses) / Gains (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Exchange losses | (33) | (894) | -96.3% | | Loss on derecognition of a subsidiary | (651) | — | - | | Loss on derecognition of an associate | (524) | — | - | | Others | 18 | 1,561 | -98.8% | | **Total** | **(1,190)** | **667** | **-278.4%** | [Net Finance Income](index=9&type=section&id=Net%20Finance%20Income) The Group's net finance income significantly decreased by **95.6%** in H1 2025, primarily due to a sharp reduction in interest income from loans Net Finance Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 119 | 251 | -52.6% | | Interest income from loans | 711 | 9,378 | -92.4% | | Interest expense on borrowings | (419) | (473) | -11.4% | | Interest expense on lease liabilities | (10) | (100) | -90.0% | | **Net finance income** | **401** | **9,056** | **-95.6%** | [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) The Group's income tax expense slightly decreased in H1 2025, mainly due to deferred tax, with the Company exempt in Cayman Islands and BVI, while mainland China operations are taxed at applicable rates, and some high-tech enterprises enjoy a **15%** preferential rate Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax | 16,189 | 16,096 | 0.6% | | Deferred tax | (3,310) | (2,741) | 20.7% | | **Total** | **12,879** | **13,355** | **-3.6%** | - The Company is exempt from income tax in the Cayman Islands and British Virgin Islands, and its Hong Kong operations have no assessable profits[21](index=21&type=chunk)[22](index=22&type=chunk) - The general corporate income tax rate in mainland China is **25%**, while high-tech enterprises, such as Hangzhou Xier Technology Co., Ltd., enjoy a **15%** preferential tax rate[23](index=23&type=chunk) [Profit and Total Comprehensive Income for the Period](index=10&type=section&id=Profit%20and%20Total%20Comprehensive%20Income%20for%20the%20Period) The Group's profit for the period is accounted for after deducting various expenses, including significant changes in directors' remuneration and depreciation of property, plant, and equipment Profit Deductions for the Period (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Directors' remuneration | 1,113 | 1,797 | -38.1% | | Depreciation of property, plant and equipment and right-of-use assets | 2,027 | 5,394 | -62.5% | | Depreciation of investment properties | 3,476 | — | - | | Amortisation of intangible assets | 327 | 291 | 12.4% | | Loss on disposal of property, plant and equipment / write-off of property, plant and equipment | 383 | 60 | 538.3% | [Dividends and Earnings Per Share](index=10&type=section&id=Dividends%20and%20Earnings%20Per%20Share) The Board does not recommend an interim dividend for H1 2025, and basic earnings per share were **RMB 0.039**, a **13.3%** year-on-year decrease - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024 interim: none)[25](index=25&type=chunk) Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousand) | 34,138 | 42,169 | -19.0% | | Weighted average number of ordinary shares in issue (thousand shares) | 882,554 | 930,360 | -5.1% | | Basic earnings per share (RMB) | 0.039 | 0.045 | -13.3% | - Diluted loss per share is not presented as the Company has no outstanding potential ordinary shares[26](index=26&type=chunk) [Trade and Other Receivables and Prepayments](index=11&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total trade and other receivables and prepayments were **RMB 916.2 million**, a **15%** decrease from year-end 2024, with increased impairment provisions for trade receivables and loans reflecting credit risk from the real estate downturn Trade and Other Receivables and Prepayments (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of impairment) | 506,357 | 430,135 | 17.7% | | Other receivables (net of impairment) | 360,464 | 349,574 | 3.1% | | Prepayments | 43,999 | 50,918 | -13.6% | | Loans receivable (net of impairment) | 5,388 | 246,818 | -97.8% | | **Total** | **916,208** | **1,077,445** | **-15.0%** | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 180 days | 230,020 | 223,164 | 3.1% | | 181 to 365 days | 173,042 | 61,410 | 181.8% | | 1 to 2 years | 77,631 | 120,911 | -35.8% | | 2 to 3 years | 48,726 | 78,685 | -38.0% | | 3 to 4 years | 51,875 | 14,025 | 269.9% | | Over 4 years | 18,142 | 8,081 | 124.5% | | **Total** | **599,436** | **506,276** | **18.4%** | - Due to the borrower's failure to repay loans, the Company realized **RMB 139.05 million** from mortgaged parking spaces and acquired properties to offset the remaining **RMB 99.04 million** in loans[29](index=29&type=chunk) [Trade and Other Payables](index=13&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables were **RMB 417.3 million**, a slight increase of **2.0%** from year-end 2024 Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 192,992 | 195,442 | -1.2% | | Other payables | 224,343 | 213,795 | 4.9% | | **Total** | **417,335** | **409,237** | **2.0%** | Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 year | 177,727 | 185,353 | -4.1% | | 1 to 2 years | 10,471 | 4,378 | 139.2% | | 2 to 3 years | 350 | 3,504 | -90.0% | | Over 3 years | 4,444 | 2,207 | 101.4% | | **Total** | **192,992** | **195,442** | **-1.2%** | [Share Capital and Repurchases](index=14&type=section&id=Share%20Capital%20and%20Repurchases) As of June 30, 2025, the Company's issued and fully paid share capital comprised **917,881,000 shares** with a par value of **RMB 7,564 thousand**; during the period, the Company repurchased **270,000 shares** for a total consideration of **HKD 205,200** Issued and Fully Paid Share Capital (As of June 30) | Date | Number of Ordinary Shares (shares) | Par Value of Ordinary Shares (HKD) | Equivalent Amount (RMB thousand) | | :--- | :--- | :--- | :--- | | January 1, 2024 | 937,308,000 | 9,373,080 | 7,738 | | Shares repurchased and cancelled | (19,427,000) | (194,270) | (174) | | December 31, 2024 and January 1, 2025 | 917,881,000 | 9,178,810 | 7,564 | | June 30, 2025 | 917,881,000 | 9,178,810 | 7,564 | - For the period ended June 30, 2025, the Group repurchased a total of **270,000 ordinary shares** listed on the Stock Exchange for a total consideration of approximately **RMB 210,000**[34](index=34&type=chunk) [Events After Reporting Period](index=14&type=section&id=Events%20After%20Reporting%20Period) Subsequent to the reporting period, the Group, through its wholly-owned subsidiary, entered into an agreement to acquire **100% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd., primarily engaged in hotel operations and management, for **RMB 78 million** - On July 31, 2025, a subsidiary of the Group agreed to acquire **95% and 5% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd. for **RMB 78 million**[33](index=33&type=chunk) - Deqing Moganshan is primarily engaged in hotel operations and management, as well as providing catering services[33](index=33&type=chunk) - As of the date of this announcement, the transaction has not yet been completed[33](index=33&type=chunk) [Chairman's Report](index=15&type=section&id=Chairman's%20Report) [Industry Landscape and Company Performance](index=15&type=section&id=Industry%20Landscape%20and%20Company%20Performance) In H1 2025, as the property industry entered a new phase of "quality and efficiency restructuring," Dexin Services Group advanced against the trend, ranking **19th** among "China's Top 100 Property Service Enterprises" for the **12th consecutive year**, demonstrating resilience and vitality with multiple accolades - The property management industry is rapidly entering a new phase of "quality and efficiency restructuring," with cooling M&A activity and a surge in project exits and residential fee reductions[35](index=35&type=chunk) - Dexin Services has been recognized by China Index Academy as one of "China's Top 100 Property Service Enterprises" for **12 consecutive years**, with its ranking rising to **19th**[35](index=35&type=chunk) - The Group also received honors such as "Top 100 Comprehensive Strength Chinese Property Enterprises" and "Top 30 East China Property Enterprises"[35](index=35&type=chunk) [Strategic Expansion and Diversification](index=15&type=section&id=Strategic%20Expansion%20and%20Diversification) The Group focuses on deep cultivation in regional markets, expands high-quality second-hand residential projects, continuously diversifies into non-residential sectors, successfully bid for public construction projects like Hangzhou Xiaoshan Youth Palace, and deepens joint ventures with state-owned enterprises - The Group insists on expanding quality second-hand residential projects, forming a virtuous expansion model of "management benchmark demonstration—local reputation building—stock market competition"[36](index=36&type=chunk) - In the first half of the year, the Group successfully bid for key public construction projects such as Hangzhou Xiaoshan Youth Palace and customized intelligent operation and management solutions[36](index=36&type=chunk) - The Group deepened cooperation with Quzhou Jiaotou, a state-owned enterprise controlled by Quzhou SASAC in Zhejiang, taking over projects like Quzhou East Bus Station and the Science and Education Industrial Park canteen, expanding into transportation hubs and canteen catering sectors[37](index=37&type=chunk) - Professional service brand Shengjie Environment successfully bid for multiple landscaping maintenance projects, including Hangzhou Fuyang Sports Center[37](index=37&type=chunk) [Service Innovation and Digital Transformation](index=16&type=section&id=Service%20Innovation%20and%20Digital%20Transformation) The Group prioritizes service, enhancing satisfaction through customer visits and quality improvement initiatives, enriching residential home services, and launching a high-end commercial property service brand in the non-residential sector; concurrently, it actively promotes green and technological transformation, implements smart service scenarios, and strengthens digitalization for operational management decisions - Adhering to the "Good House, Good Community, Good Life" philosophy, the Group completed **1,929 community upgrade projects** through customer home visits and the "Zhi Ji Song Chun Feng" quality improvement initiative[38](index=38&type=chunk) - The residential home service system has been enriched to include in-home cleaning, plumbing and electrical repairs, and pet feeding; in the non-residential sector, the high-end commercial property service brand "Shi Pu Lian Hang" has been launched[38](index=38&type=chunk) - Promoting green and technological transformation, the Group has implemented smart service scenarios such as cleaning robots, smart delivery robots, and smart inspection systems in commercial office buildings and industrial parks[39](index=39&type=chunk) - The Hangzhou Dexin Center rooftop photovoltaic renovation project has been completed, expected to generate **700,000 kWh** annually and reduce carbon emissions by **700 tons**[39](index=39&type=chunk) - Strengthening digitalization, the Group integrated an employee digital portal to enhance agile response to emergencies and achieved data-driven management and full-lifecycle cash flow monitoring through business-finance integration[41](index=41&type=chunk) [Organizational Development and Future Outlook](index=17&type=section&id=Organizational%20Development%20and%20Future%20Outlook) The Group values employee care and development, fostering a "Zhi Ji" culture through the "Blue Ribbon" fund and star butler certification system, while enhancing efficiency through organizational reform, cost reduction, and risk compliance; looking ahead, the Company will focus on core capabilities, refine products, reasonably reduce costs, and seize opportunities from AI technology - The Group regards employees as valuable resources, caring for frontline service personnel through the "Blue Ribbon" fund and emphasizing employee development rights, encouraging learning through systems like the star butler certification[40](index=40&type=chunk) - Organizational reform is being carried out with a focus on "lean headquarters, strong frontline" to streamline hierarchy, enable rapid decision-making, and prioritize cost reduction and efficiency improvement, with pilot project cloud warehouses achieving efficient operation[40](index=40&type=chunk) - In the future, the Group will leverage its flexibility as a private enterprise to build core capabilities, refine products, reasonably reduce costs and enhance efficiency, and seize opportunities presented by the AI technology revolution[42](index=42&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) [Overview and Financial Review](index=19&type=section&id=Overview%20and%20Financial%20Review) Dexin Services, a leading integrated property management service provider in Zhejiang Province, maintained stable operations in H1 2025, but total revenue decreased by **6.4%** year-on-year, primarily due to declines in non-owner and community value-added services revenue - Dexin Services was recognized by China Index Academy as a TOP **19** China Property Service Hundred Enterprises in 2025[43](index=43&type=chunk) - The Group's main businesses include property management services, non-owner value-added services, and community value-added services[43](index=43&type=chunk) Revenue Breakdown by Business Line (For the six months ended June 30) | Business Line | 2025 (RMB thousand) | % of Total | 2024 (RMB thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property management services | 408,417 | 92.2% | 413,438 | 87.4% | -1.2% | | Non-owner value-added services | 13,813 | 3.1% | 19,835 | 4.2% | -30.4% | | Community value-added services | 20,762 | 4.7% | 39,955 | 8.4% | -48.0% | | **Total** | **442,992** | **100.0%** | **473,228** | **100.0%** | **-6.4%** | [Property Management Services](index=20&type=section&id=Property%20Management%20Services) Property management services revenue decreased by **1.2%** year-on-year to **RMB 408.4 million**, with GFA under management declining by **3.2%** to **38.3 million sq.m.**, primarily due to project structure optimization, and independent third-party developed properties accounting for the largest share of GFA under management - Property management services revenue was approximately **RMB 408.4 million**, a **1.2%** year-on-year decrease[46](index=46&type=chunk) - Total GFA under management was approximately **38.3 million sq.m.**, a **3.2%** year-on-year decrease, primarily due to the Company optimizing its project structure to retain high-quality projects[46](index=46&type=chunk) Contracted GFA and GFA Under Management (As of June 30) | Indicator | 2025 (thousand sq.m.) | 2024 (thousand sq.m.) | Change (%) | | :--- | :--- | :--- | :--- | | Contracted GFA at period-end | 41,417 | 44,851 | -7.7% | | GFA under management at period-end | 38,291 | 39,563 | -3.2% | Total GFA Under Management and Revenue by Property Type (As of June 30) | Property Type | 2025 GFA (thousand sq.m.) | 2025 Revenue (RMB thousand) | 2024 GFA (thousand sq.m.) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Properties developed by Dexin Group | 13,638 | 151,948 | 13,793 | 149,198 | | Jointly developed properties | 4,383 | 60,058 | 4,693 | 61,398 | | Independent third-party properties | 20,270 | 196,411 | 21,077 | 202,842 | | **Total** | **38,291** | **408,417** | **39,563** | **413,438** | Total GFA Under Management and Revenue by Region (As of June 30) | Region | 2025 GFA (thousand sq.m.) | 2025 Revenue (RMB thousand) | 2024 GFA (thousand sq.m.) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Zhejiang Province | 26,170 | 295,602 | 26,064 | 304,742 | | Yangtze River Delta Region (excluding Zhejiang Province) | 7,169 | 69,881 | 8,439 | 67,885 | | Other regions | 4,952 | 42,934 | 5,060 | 40,811 | | **Total** | **38,291** | **408,417** | **39,563** | **413,438** | Total GFA Under Management and Revenue by Property Type (As of June 30) | Property Type | 2025 GFA (thousand sq.m.) | 2025 Revenue (RMB thousand) | 2024 GFA (thousand sq.m.) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Residential properties | 31,139 | 300,403 | 30,405 | 283,945 | | Non-residential properties | 7,152 | 108,014 | 9,158 | 129,493 | | **Total** | **38,291** | **408,417** | **39,563** | **413,438** | [Non-Owner Value-Added Services](index=23&type=section&id=Non-Owner%20Value-Added%20Services) Non-owner value-added services revenue decreased by **30.4%** year-on-year to **RMB 13.8 million**, primarily due to the ongoing downturn in the real estate industry, leading to a significant reduction in sales venue services revenue - Non-owner value-added services revenue was approximately **RMB 13.8 million**, a **30.4%** year-on-year decrease, primarily due to the continuous downturn in the real estate industry and decreasing service demand from partner property developers[54](index=54&type=chunk) Non-Owner Value-Added Services Revenue Breakdown (For the six months ended June 30) | Service Type | 2025 Revenue (RMB thousand) | % of Total | 2024 Revenue (RMB thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sales venue services | 3,720 | 26.9% | 13,147 | 66.3% | -71.7% | | Pre-delivery inspection services | 6,934 | 50.2% | 4,735 | 23.9% | 46.4% | | Property inspection and repair services | 1,121 | 8.1% | 1,623 | 8.1% | -30.9% | | Commercial consulting services | 2,038 | 14.8% | 330 | 1.7% | 517.6% | | **Total** | **13,813** | **100.0%** | **19,835** | **100.0%** | **-30.4%** | [Community Value-Added Services](index=24&type=section&id=Community%20Value-Added%20Services) Community value-added services revenue sharply decreased by **48.0%** year-on-year to **RMB 20.8 million**, primarily due to significant reductions in smart community solutions, home beautification services, and community retail and home services revenue, reflecting fewer property delivery projects and intensified market competition - Community value-added services revenue was approximately **RMB 20.8 million**, a **48.0%** year-on-year decrease[56](index=56&type=chunk) Community Value-Added Services Revenue Breakdown (For the six months ended June 30) | Service Type | 2025 Revenue (RMB thousand) | % of Total | 2024 Revenue (RMB thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Smart community solutions | 1,792 | 8.6% | 9,380 | 23.5% | -80.9% | | Property sales and co-sales services | 366 | 1.8% | 507 | 1.3% | -27.8% | | Community resource value-added services | 13,556 | 65.2% | 13,892 | 34.8% | -2.4% | | Club services | 957 | 4.6% | 815 | 2.0% | 17.4% | | Home beautification services | 342 | 1.7% | 1,482 | 3.7% | -76.9% | | Community retail and home services | 3,749 | 18.1% | 13,879 | 34.7% | -73.0% | | **Total** | **20,762** | **100.0%** | **39,955** | **100.0%** | **-48.0%** | - The decline in smart community solutions revenue is primarily due to a significant decrease in property delivery projects, leading to a corresponding drop in demand[57](index=57&type=chunk) - The decrease in home beautification services revenue is mainly due to the continuous downturn in the real estate market and a significant reduction in delivered projects[59](index=59&type=chunk) - The decline in community retail and home services revenue is primarily attributed to insufficient strategic positioning and resource allocation, decreased business development capabilities, and intense market competition in the retail sector[59](index=59&type=chunk) [Cost of Sales, Gross Profit and Gross Margin](index=25&type=section&id=Cost%20of%20Sales%2C%20Gross%20Profit%20and%20Gross%20Margin) Cost of sales decreased by **6.2%** year-on-year to **RMB 348.6 million**, gross profit declined by **7.0%** to **RMB 94.4 million**, and gross margin slightly decreased by **0.2%** to **21.3%**; gross margins for non-owner and community value-added services significantly increased, primarily due to personnel restructuring and cost control - Cost of sales was **RMB 348.6 million**, a **6.2%** year-on-year decrease, primarily due to a corresponding decline in costs as business service revenue decreased[60](index=60&type=chunk) - Gross profit was **RMB 94.4 million**, a **7.0%** year-on-year decrease; gross margin was **21.3%**, a **0.2%** year-on-year decrease[61](index=61&type=chunk) Gross Margin by Business Segment (For the year ended June 30) | Business Segment | 2025 Gross Margin (%) | 2024 Gross Margin (%) | Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 19.1% | 19.4% | -0.3% | | Non-owner value-added services | 26.4% | 19.2% | 7.2% | | Community value-added services | 62.3% | 44.0% | 18.3% | | **Total** | **21.3%** | **21.5%** | **-0.2%** | - Gross margin for non-owner value-added services increased by **7.2%**, and for community value-added services by **18.3%**, primarily due to personnel restructuring and reduced labor costs[63](index=63&type=chunk) [Operating Expenses and Profitability](index=26&type=section&id=Operating%20Expenses%20and%20Profitability) Other income decreased, and net other losses increased; selling and marketing expenses and administrative expenses both significantly declined, but impairment loss on trade and other receivables increased, while net finance income sharply reduced, leading to an **18.6%** year-on-year decrease in net profit for the period - Other income decreased by **39.6%** to **RMB 0.8 million**, primarily due to a decline in government grant income[64](index=64&type=chunk) - Net other losses were **RMB 1.2 million** (H1 2024: net gains of **RMB 0.7 million**), primarily due to losses from derecognizing subsidiaries and associates[65](index=65&type=chunk) - Selling and marketing expenses decreased by **63.5%** to **RMB 2.2 million**, mainly due to the scaling down of non-owner value-added services and community value-added services businesses[66](index=66&type=chunk) - Administrative expenses decreased by **20.2%** to **RMB 31.7 million**, primarily due to organizational restructuring and optimized staffing[67](index=67&type=chunk) - Impairment loss on trade and other receivables increased by **20.8%** to **RMB 13.2 million**, primarily due to increased credit risk from the ongoing downturn in the real estate industry[68](index=68&type=chunk) - Net finance income decreased by **95.6%** to **RMB 0.4 million**, mainly because there was no interest income from loans provided to third parties in the current period[69](index=69&type=chunk) - Net profit for the period was **RMB 34.6 million**, an **18.6%** year-on-year decrease; net profit margin was **7.8%**, a **1.2%** year-on-year decrease[71](index=71&type=chunk) - Basic and diluted earnings per share were **RMB 0.039** per share[72](index=72&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's cash and cash equivalents decreased by **16.1%** to **RMB 169.6 million**, with a current ratio of **1.9 times** and a gearing ratio of **0.01**, indicating a stable financial position - Cash and cash equivalents were **RMB 169.6 million**, a **16.1%** decrease compared to December 31, 2024[75](index=75&type=chunk) - The current ratio (current assets / current liabilities) was **1.9 times** (December 31, 2024: **2.0 times**)[75](index=75&type=chunk) - Borrowings were **RMB 10.0 million** (December 31, 2024: **RMB 17.0 million**), and the gearing ratio was **0.01** (December 31, 2024: **0.02**)[75](index=75&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) [Risk Management and Commitments](index=29&type=section&id=Risk%20Management%20and%20Commitments) The Group's operations are primarily denominated in RMB, with foreign exchange risk managed by closely monitoring exchange rate fluctuations; as of the reporting period, there were no capital commitments, financial guarantees, or other significant contingent liabilities - The vast majority of the Group's income and expenses are denominated in RMB, and foreign exchange risk is managed by closely monitoring exchange rate fluctuations[76](index=76&type=chunk) - As of June 30, 2025, the Group had no contracted capital commitments for which no provision had been made[77](index=77&type=chunk) - As of June 30, 2025, the Company, its subsidiaries, and associates had not provided any financial guarantees, guarantees for loans, or mortgages, nor did they have any other significant contingent liabilities[78](index=78&type=chunk) [Significant Investments and Subsequent Events](index=29&type=section&id=Significant%20Investments%20and%20Subsequent%20Events) During the reporting period, the Group disposed of a **49% stake** in Shandong Land Group (Heze) Dexin Asset Operation Co., Ltd., realizing **RMB 0.52 million**; subsequent to the period, the Group plans to use net proceeds from the global offering to acquire **100% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd. to expand business scale and diversify - During the reporting period, the Group disposed of a **49% stake** in Shandong Land Group (Heze) Dexin Asset Operation Co., Ltd., realizing **RMB 0.52 million**[79](index=79&type=chunk) - The Group intends to use part of the net proceeds from the listing to acquire property management companies to expand its business scale and market share[80](index=80&type=chunk) - On July 31, 2025, a subsidiary of the Group agreed to acquire **100% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd., primarily engaged in hotel operations and management, for **RMB 78 million**[81](index=81&type=chunk) - This acquisition will utilize **HKD 82.4 million** (approximately **RMB 75.0 million**) from the unutilized net proceeds of the global offering, with the remainder funded by internal resources[81](index=81&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **2,770 employees**, with total staff costs of **RMB 124.8 million** for H1; the Company underwent organizational reform, optimized its structure, and established a comprehensive remuneration and multi-level training system to enhance service quality and organizational efficiency - As of June 30, 2025, the Group's total number of employees remained at **2,770**, with total staff costs for the first half of the year amounting to **RMB 124.8 million**[83](index=83&type=chunk) - In 2025, the Group underwent organizational reform, merging Jiangsu, Shanghai, and Anhui city companies to form the Su-Hu-Wan Regional Company and establishing a new Zhengzhou city company to optimize organizational structure and enhance operational efficiency[83](index=83&type=chunk) - The Group's remuneration system comprehensively considers local salary levels, industry trends, economic inflation, company operational efficiency, and individual employee performance, while providing comprehensive social insurance coverage[84](index=84&type=chunk) - The Group has established a comprehensive, multi-level, and multi-dimensional training system covering the entire employee career cycle, including the "Reserve Project Manager Training Program" and "New Torchbearer Management Trainee Program," and implemented a "Star Butler Certification" system[85](index=85&type=chunk)[86](index=86&type=chunk) [Share Option Scheme and Use of Proceeds](index=32&type=section&id=Share%20Option%20Scheme%20and%20Use%20of%20Proceeds) The Company adopted a share option scheme in 2021, but no options have been granted, exercised, cancelled, or lapsed since its adoption; the use of net proceeds from the global offering has been revised, with some allocated to loans for business partners, and remaining funds planned for business expansion and IT investments, with the expected utilization period extended to June 2026 - The Company adopted a share option scheme on June 21, 2021, but no share options have been granted, exercised, cancelled, or lapsed since its adoption date[87](index=87&type=chunk) - The net proceeds from the global offering were originally **HKD 763.5 million**, with approximately **65.0%** intended for expanding business scale and market share[88](index=88&type=chunk) - The Company previously provided a loan of up to **RMB 315 million** to business partner Hangzhou Ruiyang Supply Chain Management Co., Ltd., with part repaid and the remainder offset by realizing mortgaged assets and acquiring properties[89](index=89&type=chunk)[90](index=90&type=chunk) - As of December 31, 2024, unutilized net proceeds from the global offering amounted to approximately **HKD 138.0 million**, with **HKD 82.4 million** intended for business expansion and **HKD 55.6 million** for information technology investments[91](index=91&type=chunk) - The Directors believe that the acquisition of **100% equity** in Deqing Moganshan Ruijing Real Estate Co., Ltd. aligns with the intended use of proceeds for business expansion and diversification[92](index=92&type=chunk) - The expected timetable for all utilized net proceeds has been extended to on or before June 2026[92](index=92&type=chunk) Use of Net Proceeds from Global Offering and Revised Status (As of June 30, 2025) | Use of Proceeds | IPO Plan (HKD million) | Revised Allocation Dec 16, 2022 (HKD million) | Unutilized Jan 1, 2025 (HKD million) | Utilized During Period (HKD million) | Unutilized June 30, 2025 (HKD million) | Expected Timetable | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand business scale and market share | 496.0 | 83.7 | 82.4 | 0 | 82.4 | Before June 2026 | | Diversify and expand service offerings | 76.4 | 7.1 | 0 | 0 | 0 | N/A | | Invest in information technology and internal management systems | 76.4 | 70.2 | 55.6 | 0.6 | 55.0 | Before June 2026 | | Improve human resource management | 38.3 | 12.7 | 0 | 0 | 0 | N/A | | Working capital and general corporate purposes | 76.4 | 7.5 | 0 | 0 | 0 | N/A | | Loans to borrowers | N/A | 342.9 | 0 | 0 | 0 | N/A | | **Total** | **763.5** | **524.1** | **138.0** | **0.6** | **137.4** | | [Corporate Governance and Compliance](index=36&type=section&id=Corporate%20Governance%20and%20Compliance) The Board does not recommend an interim dividend, and the Company repurchased **270,000 shares** during the period; the Group is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code and the Model Code for Securities Transactions by Directors, and its financial statements have been reviewed by the Audit Committee - The Board does not recommend the payment of any interim dividend for the reporting period (H1 2024: none)[94](index=94&type=chunk) - During the reporting period, the Company repurchased a total of **270,000 shares** on the Stock Exchange for a total consideration of **HKD 205,200**[95](index=95&type=chunk)[96](index=96&type=chunk) - The Company has complied with all applicable code provisions set out in the Corporate Governance Code[97](index=97&type=chunk) - All Directors confirm that they have complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[98](index=98&type=chunk) - The Company's Audit Committee has reviewed the accounting principles and policies adopted by the Group and discussed internal controls and financial reporting matters for the reporting period[99](index=99&type=chunk)

Financial Performance - For the six months ended June 30, 2025, the revenue was RMB 1,433.8 million, a decrease of 3.3% compared to RMB 1,482.9 million for the same period in 2024[6] - The net profit for the same period was RMB 112.2 million, an increase of 2.8% from RMB 109.2 million in 2024[6] - The profit attributable to shareholders for the six months ended June 30, 2025, was RMB 106.2 million, up 2.7% from RMB 103.4 million in 2024[6] - The core net profit attributable to shareholders was RMB 147.9 million, essentially unchanged from RMB 148.4 million in 2024[6] - The basic earnings per share remained at RMB 0.08, consistent with the same period in 2024[6] - The group reported a gross profit of RMB 298.7 million for the six months ended June 30, 2025, compared to RMB 337.8 million in 2024, reflecting a decrease in gross margin[7] - Gross profit for the group was RMB 298.7 million, down 11.6% from RMB 337.8 million in 2024, with a gross margin decline from 22.8% to 20.8%[73] Revenue Breakdown - Property management and related services generated revenue of RMB 1,234,575,000, representing a slight increase of 0.5% from RMB 1,228,345,000 in 2024[22] - Sales of goods decreased to RMB 144,449,000, down 6.3% from RMB 154,229,000 in the previous year[22] - Installation and decoration services saw a significant decline in revenue to RMB 21,760,000, down 58.8% from RMB 52,769,000 in 2024[22] - Community value-added services revenue decreased by 14.6% to RMB 251.2 million from RMB 294.2 million in 2024, primarily due to a sluggish domestic real estate market[69] - Non-owner value-added services revenue fell by 48.8% to RMB 28.2 million from RMB 55.2 million in 2024, attributed to a proactive adjustment in business scale due to ongoing industry corrections[70] Expenses and Costs - Total expenses for the six months ended June 30, 2025, were RMB 1,214,396,000, slightly down from RMB 1,252,351,000 in 2024, reflecting a decrease of approximately 3%[28] - Selling and marketing expenses decreased by approximately 33.4% to RMB 6.4 million, accounting for about 0.4% of revenue[76] - Administrative expenses were RMB 72.9 million, a reduction of 25.4% from RMB 97.7 million in 2024, representing about 5.1% of total revenue[77] - Financial asset impairment losses increased to RMB 71.6 million, up RMB 22.5 million from the previous year, due to increased credit risk in receivables[78] Assets and Liabilities - Total assets as of June 30, 2025, were RMB 4,451.9 million, down from RMB 4,726.9 million as of December 31, 2024[12] - Total liabilities decreased to RMB 2,437.3 million from RMB 2,737.6 million as of December 31, 2024[13] - The company's cash and cash equivalents were RMB 831.6 million, down from RMB 1,190.1 million as of December 31, 2024[12] - Trade receivables from related parties amounted to RMB 1,602,423,000 as of June 30, 2025, compared to RMB 1,640,198,000 as of December 31, 2024[42] - The total trade and other receivables and prepayments as of June 30, 2025, was RMB 2,955,346,000, an increase from RMB 2,853,867,000 as of December 31, 2024[42] Dividends - The board proposed an interim dividend of HKD 0.033 per share, to be paid from the company's share premium account[6] - The company declared a final dividend of HKD 0.0736 per share, amounting to approximately HKD 95,627,000 (equivalent to RMB 87,634,000) for the year ending December 31, 2024[52] - The interim dividend proposed is HKD 0.033 per share, a decrease from HKD 0.1059 per share in the same period last year[113] Strategic Focus and Future Plans - The company aims to enhance service quality and customer experience through diversified living services and modern interactive smart environments[55] - The focus for the second half of 2025 will be on enhancing customer stickiness and exploring value from existing assets amid intensified industry competition[57] - The company plans to optimize existing service structures to improve penetration and repurchase rates while ensuring the sustainability and profitability of new services[58] - The company will continue to strengthen community culture and enhance neighborly values through organized online and offline community activities[60] - A cautious evaluation of business expansion will be conducted to ensure alignment with existing capabilities and cost structures, focusing on improving efficiency and optimizing operations[62] Governance and Compliance - The company has maintained compliance with all corporate governance rules except for the deviation regarding the roles of Chairman and CEO, which are held by the same person[102] - The company's Audit Committee is composed entirely of independent non-executive directors, ensuring checks and balances in governance[102] - The Audit Committee has reviewed the unaudited interim consolidated financial statements for the six months ended June 30, 2025[111] Employee and Organizational Structure - The company has 5,516 employees as of June 30, 2025, and is focusing on organizational efficiency and responsiveness[98] - The company emphasizes a performance-based compensation structure to enhance employee motivation and creativity[100]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Ajisen (China) Holdings Limited 味千（中國）控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：538） 二零二五年中期業績摘要 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | 二零二五年 | 二零二四年 | 變動 | | | （人民幣千元） | （人民幣千元） | | | 營業額 | 875,336 | 826,790 | +5.9% | | 餐廳業務銷售 | 849,095 | 792,194 | +7.2% | | 毛利 | 673,896 | 636,261 | +5.9% | | 經營溢利 | 31,131 | 11,121 | +180.0% | | 除稅前溢利（虧損） | 36,845 | (15,566) | 不適用 | | 本公司股東應佔溢利（虧損） | 24,232 | (7,157) | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Chongqing Rural Commercial Bank Co., Ltd. * * : 3618 截至2025年6月30日止六個月中期業績公告 重慶農村商業銀行股份有限公司Chongqing Rural Commercial Bank Co., Ltd.* （「本行」） 之董事會（「董事會」）欣然宣佈本行及所屬子公司（「本集團」）截至2025年6月30日止六個 月之未經審計中期合併業績（「中期業績」）。本業績公告列載本集團截至2025年6月30日 止六個月之中期報告全文，其內容是根據適用的香港聯合交易所有限公司（「香港聯交 所」）證券上市規則披露要求及按照國際財務報告準則編製。董事會及董事會審計委員 會已審閱此中期業績。本業績公告於本行的網站(www.cqrcb.com)及香港聯交所的網站 (www.hkexnews.hk)發佈。本行將按本行H股股東選擇收取公司通訊的方式向其寄發截至 2025年 ...

[財務摘要](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section provides a high-level overview of the company's financial performance for the six months ended June 30, 2025, highlighting key revenue, cost, and loss figures Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 20,862 | – | | Cost of sales | (11,167) | – | | Gross profit | 9,695 | – | | Other income and gains | 764 | 1,415 | | Research and development expenses | (20,090) | (21,791) | | Selling and marketing expenses | (1,146) | – | | Administrative expenses | (9,691) | (7,084) | | Other expenses | (48) | (181) | | Finance costs | (6,648) | (23) | | Share of loss of an associate | (256) | (661) | | Loss before tax | (27,420) | (28,325) | [業務摘要](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E6%91%98%E8%A6%81) This section outlines the company's significant operational achievements and product development milestones during the reporting period - The Board of Directors is pleased to announce the unaudited condensed consolidated interim results for the six months ended June 30, 2025[5](index=5&type=chunk) - The **Iberis® RDN System** received NMPA approval on February 26, 2025, for adjunctive treatment of refractory hypertension and drug-intolerant hypertension patients[6](index=6&type=chunk) - The **Iberis® RDN System** completed its first commercial procedure in Europe in February 2025[6](index=6&type=chunk) - In the first half of 2025, the company recorded **RMB 20.9 million in revenue** from the global commercialization of its second-generation Iberis® RDN System, compared to zero in the same period of 2024[6](index=6&type=chunk) - On March 27, 2025, the company successfully enrolled the first patient in the **SAKURA-SCB trial** in Japan for ischemic heart disease[6](index=6&type=chunk) [中期簡明綜合財務報表](index=3&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) This section presents the company's interim condensed consolidated financial statements, including the statement of profit or loss, statement of financial position, and detailed notes [中期簡明綜合損益及其他全面收益表](index=3&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%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company generated revenue of RMB 20,862 thousand and a gross profit of RMB 9,695 thousand, with a net loss of RMB 26,734 thousand, a reduction from RMB 28,325 thousand in the prior year, and basic and diluted loss per share remained at RMB 0.11 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 20,862 | – | | Cost of sales | (11,167) | – | | Gross profit | 9,695 | – | | Other income and gains | 764 | 1,415 | | Research and development expenses | (20,090) | (21,791) | | Selling and marketing expenses | (1,146) | – | | Administrative expenses | (9,691) | (7,084) | | Other expenses | (48) | (181) | | Finance costs | (6,648) | (23) | | Share of loss of an associate | (256) | (661) | | Loss before tax | (27,420) | (28,325) | | Income tax credit | 686 | – | | Loss for the period | (26,734) | (28,325) | | Loss attributable to owners of the parent | (27,213) | (25,830) | | Non-controlling interests | 479 | (2,495) | | Basic and diluted loss per share (RMB) | (0.11) | (0.11) | [中期簡明綜合財務狀況表](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 were RMB 455,806 thousand, total current assets were RMB 422,611 thousand, total current liabilities were RMB 33,421 thousand, and total non-current liabilities were RMB 191,197 thousand, resulting in a net asset value of RMB 653,799 thousand, a decrease from RMB 680,533 thousand as of December 31, 2024 Interim Condensed Consolidated Statement of Financial Position (as of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 40,747 | 42,945 | | Other intangible assets | 132,952 | 137,587 | | Investment in a joint venture | 32,800 | – | | Total non-current assets | 455,806 | 434,749 | | **Current assets** | | | | Inventories | 23,133 | 18,327 | | Trade receivables | 12,168 | – | | Cash and cash equivalents | 187,380 | 202,386 | | Time deposits | 125,491 | – | | Total current assets | 422,611 | 299,027 | | **Current liabilities** | | | | Trade payables | 3 | 95 | | Contract liabilities | 18,461 | – | | Total current liabilities | 33,421 | 19,649 | | **Non-current liabilities** | | | | Redemption liabilities for shares in a subsidiary | 158,900 | – | | Total non-current liabilities | 191,197 | 33,594 | | Net assets | 653,799 | 680,533 | | Total equity | 653,799 | 680,533 | [中期簡明綜合財務報表附註](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the interim condensed consolidated financial statements, covering company and group information, basis of preparation, changes in accounting policies, operating segment information, composition and changes in various income and expenses, and specific details of balance sheet items, including investments in associates and aging analysis of trade receivables [1 公司及集團資料](index=6&type=section&id=1%20Company%20and%20Group%20Information) This section provides fundamental information about the company and its group structure - Shanghai Bio-Heart Biological Technology Co., Ltd. is incorporated in China, primarily engaged in the research, development, and commercialization of bioresorbable scaffold (BRS) products and second-generation renal denervation (RDN) systems[10](index=10&type=chunk) - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since December 23, 2021[11](index=11&type=chunk) [2 編製基準](index=6&type=section&id=2%20Basis%20of%20Preparation) This section outlines the accounting standards and principles used for preparing the interim condensed consolidated financial information - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and presented in RMB, with all values rounded to the nearest thousand[12](index=12&type=chunk) [3 會計政策的變動](index=6&type=section&id=3%20Changes%20in%20Accounting%20Policies) This section details any changes in accounting policies adopted during the reporting period and their impact on the financial statements - Except for the initial adoption of revised International Financial Reporting Standards, the accounting policies used to prepare the interim condensed consolidated financial information are consistent with those adopted for the annual consolidated financial statements for the year ended December 31, 2024[13](index=13&type=chunk) - The amendments to IAS 21 (Revised) regarding lack of exchangeability have no impact on the interim condensed consolidated financial information, as the currencies in which the Group transacts are exchangeable with the functional currency of the entities[14](index=14&type=chunk) [4 經營分部資料](index=6&type=section&id=4%20Operating%20Segment%20Information) This section provides information on the company's operating segments, including how revenue and non-current assets are geographically distributed - The Group has only one reportable segment, and no further analysis of this single segment is presented as the CEO reviews consolidated results for decision-making purposes[15](index=15&type=chunk) - The Group's revenue primarily comes from a major customer in mainland China, and all non-current assets are located in China, thus no geographical segment analysis is presented[15](index=15&type=chunk) [5 收益](index=7&type=section&id=5%20Revenue) This section provides a breakdown of the company's revenue by type and timing of recognition Revenue Analysis (for the six months ended June 30) | Revenue Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sale of goods | 20,455 | – | | Collaboration income | 407 | – | | Total | 20,862 | – | | Timing of revenue recognition: | | | | Transferred at a point in time | 20,455 | – | | Transferred over time | 407 | – | | Total | 20,862 | – | [6 其他收入及收益](index=7&type=section&id=6%20Other%20Income%20and%20Gains) This section details the components of other income and gains, explaining the reasons for any significant changes Other Income and Gains Analysis (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants | 31 | 100 | | Interest income | 733 | 674 | | Exchange gains | – | 641 | | Total | 764 | 1,415 | - Other income and gains decreased by **RMB 0.6 million** from RMB 1.4 million in the prior year to **RMB 0.8 million** in 2025, primarily due to a decrease in exchange gains[17](index=17&type=chunk) [7 除稅前虧損](index=8&type=section&id=7%20Loss%20Before%20Tax) This section itemizes the deductions and inclusions contributing to the company's loss before tax Items Deducted/Included in Loss Before Tax (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories sold | 6,151 | – | | Depreciation of property, plant and equipment | 2,397 | 3,340 | | Depreciation of right-of-use assets | 740 | 612 | | Share of loss of an associate | 256 | 661 | | Auditor's remuneration | 310 | 310 | | Amortisation of other intangible assets | 4,635 | 62 | | Interest income | (733) | (674) | | Exchange losses/(gains) | 134 | (641) | | Government grants | (31) | (77) | | Staff costs (wages and salaries) | 6,860 | 3,903 | | Staff costs (contributions to pension schemes) | 760 | 480 | [8 財務成本](index=8&type=section&id=8%20Finance%20Costs) This section provides a detailed breakdown of the company's finance costs for the reporting period Finance Costs Analysis (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on redemption liabilities for shares in a subsidiary | 3,300 | – | | Transaction costs attributable to redemption liabilities for shares in a subsidiary | 3,187 | – | | Interest on lease liabilities | 161 | 23 | | Total | 6,648 | 23 | [9 所得稅](index=9&type=section&id=9%20Income%20Tax) This section details the company's income tax provisions, including applicable tax rates, deferred tax assets, and tax credits - No provision for enterprise income tax at a rate of 25% has been made for mainland China entities due to no estimated taxable profits for the period; Antong and Shanghai Xianjianyi Trading Co., Ltd. are recognized as small low-profit enterprises, subject to a preferential income tax rate of 20%[20](index=20&type=chunk) - No provision for Hong Kong income tax at a rate of 16.5% has been made for Hong Kong entities due to no estimated taxable profits for the period; unused tax losses and deductible temporary differences have not been recognized as deferred tax due to unpredictable future profit streams[21](index=21&type=chunk) Income Tax Credit (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax | – | – | | Deferred income tax | (686) | – | | Tax credit for the period | (686) | – | [10 股息](index=9&type=section&id=10%20Dividends) This section states whether any dividends were declared or paid by the company during the reporting period - The company did not declare or pay any dividends for the six months ended June 30, 2025 (2024: nil)[23](index=23&type=chunk) [11 母公司普通權益持有人應佔每股虧損](index=9&type=section&id=11%20Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) This section explains the calculation of basic and diluted loss per share attributable to ordinary equity holders of the parent company - The company had no potential dilutive ordinary shares outstanding during any presented period, and the weighted average number of ordinary shares calculation excludes treasury shares held in trust[24](index=24&type=chunk) Basic Loss Per Share Calculation (for the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the parent (RMB thousands) | (27,213) | (25,830) | | Weighted average number of ordinary shares in issue for basic loss per share (thousands) | 243,417 | 243,417 | | Loss per share (RMB) | (0.11) | (0.11) | [12 物業、廠房及設備](index=10&type=section&id=12%20Property%2C%20Plant%20and%20Equipment) This section provides information on the company's property, plant, and equipment, including acquisitions and net book value - For the six months ended June 30, 2025, the Group acquired property, plant and equipment at a cost of **RMB 2,397 thousand** (2024: RMB 3,340 thousand)[26](index=26&type=chunk) - As of June 30, 2025, the net book value of property, plant and equipment was **RMB 40,747 thousand** (December 31, 2024: RMB 42,945 thousand)[26](index=26&type=chunk) [13 預付款項、其他應收款項及其他資產](index=10&type=section&id=13%20Prepayments%2C%20Other%20Receivables%20and%20Other%20Assets) This section details the company's prepayments, other receivables, and other assets, distinguishing between non-current and current portions Prepayments, Other Receivables and Other Assets (as of June 30, 2025) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current** | | | | Prepayments for purchase of property, plant and equipment | 26,000 | 26,023 | | Recoverable VAT – non-current | 16,442 | 20,352 | | Total | 43,135 | 47,049 | | **Current** | | | | Prepayments | 71,947 | 78,314 | | Recoverable VAT – current | 2,492 | – | | Total | 74,439 | 78,314 | - Recoverable VAT refers to input VAT expected to be recovered through tax refunds or used to offset output VAT in the future[28](index=28&type=chunk) [14 於一間聯營公司的投資](index=11&type=section&id=14%20Investment%20in%20an%20Associate) This section provides information on the company's investment in an associate, including its cost, share of post-acquisition losses, and the nature of the associate's business Investment in an Associate (as of June 30, 2025) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of investment in an associate, unlisted | 39,658 | 39,658 | | Share of post-acquisition losses | (4,305) | (4,049) | | Total | 35,353 | 35,609 | - As of June 30, 2025, the Group held a total of **22.18% equity interest** in Xinzhi Medical, which is primarily engaged in the research and development of drug-eluting balloon (DEB) products[30](index=30&type=chunk)[31](index=31&type=chunk) - This investment is accounted for using the equity method because the Group has the right to appoint one of the seven directors of Xinzhi Medical, giving it significant influence over its financial and operating policies[31](index=31&type=chunk) [15 貿易應收款項](index=11&type=section&id=15%20Trade%20Receivables) This section presents an aging analysis of the company's trade receivables Aging Analysis of Trade Receivables (as of June 30, 2025) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 12,168 | – | [管理層討論及分析](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a comprehensive discussion and analysis of the company's business operations, financial performance, and future outlook [I. 業務回顧](index=12&type=section&id=I.%20Business%20Review) This section reviews the company's core business, product pipeline, R&D progress, production capabilities, commercialization strategy, and future development prospects, focusing on BRS and RDN therapies, clinical development, and global expansion [概覽](index=12&type=section&id=Overview) This section provides a general overview of the company's strategic focus and core therapeutic areas - The company is a leading innovative interventional cardiovascular device company in China, focusing on **BRS (Bioresorbable Scaffold)** and **RDN (Renal Denervation)** therapies to address unmet medical needs in coronary artery disease and uncontrolled hypertension[33](index=33&type=chunk) [產品及管線](index=12&type=section&id=Products%20and%20Pipeline) This section outlines the company's portfolio of pipeline products at various stages of development or commercialization - As of the announcement date, the company has a pipeline of **three investigational products** at different stages of development or commercialization, including the Bioheart® BRS System, Iberis® RDN System, and Rapamycin Drug-Coated Balloon (DCB)[34](index=34&type=chunk)[35](index=35&type=chunk) [BRS在研產品](index=13&type=section&id=BRS%20Pipeline%20Products) This section focuses on the company's Bioresorbable Scaffold (BRS) pipeline product, including its development status and expected approval timeline - **Bioheart®** is a self-developed fully absorbable temporary scaffold for treating coronary artery disease, recognized as an "innovative medical device" by the NMPA in February 2017, and is expected to receive NMPA approval in the third quarter of 2026[36](index=36&type=chunk) [RDN在研產品](index=13&type=section&id=RDN%20Pipeline%20Products) This section details the company's Renal Denervation (RDN) system, including its regulatory approval and commercialization milestones - **Iberis®** is a self-developed RDN system for treating uncontrolled and resistant hypertension, approved by the NMPA on February 26, 2025, and completed its first commercial procedure in Europe in February 2025[37](index=37&type=chunk)[38](index=38&type=chunk) [DCB在研產品](index=14&type=section&id=DCB%20Pipeline%20Products) This section describes the company's new Drug-Coated Balloon (DCB) product, its design features, and clinical trial progress - The newly developed DCB is a rapamycin drug-eluting balloon catheter designed to treat in-stent restenosis, featuring anti-inflammatory effects and enhanced safety[39](index=39&type=chunk) - On March 27, 2025, the company successfully enrolled the first patient in the **SAKURA-SCB trial** in Japan for ischemic heart disease[40](index=40&type=chunk) [研究及開發](index=14&type=section&id=Research%20and%20Development) This section highlights the company's research and development capabilities, including its focus areas and intellectual property portfolio - The company's R&D team focuses on developing medical devices for coronary artery disease and hypertension, holding **over 70 registered patents** and **more than 30 pending patent applications**[41](index=41&type=chunk) [生產](index=15&type=section&id=Production) This section provides an overview of the company's production facilities and plans for capacity expansion - The company operates production facilities in Shanghai and is constructing a new manufacturing plant in Jiaxing, Zhejiang Province, expected to complete renovation by the end of 2025 and become operational in 2026[42](index=42&type=chunk) [商業化](index=15&type=section&id=Commercialization) This section outlines the company's commercialization efforts and market penetration for its second-generation RDN system - As of the announcement date, the company has successfully commercialized its **second-generation Iberis® RDN System** in multiple countries and regions, including China, France, Germany, Italy, Spain, Turkey, and Ecuador[43](index=43&type=chunk) [未來前景](index=15&type=section&id=Future%20Prospects) This section details the company's strategic goals and plans for future growth, including clinical development, market expansion, and potential collaborations - The company aims to become a globally renowned medical device platform for chronic disease management, planning to accelerate clinical development and commercialization of pipeline products, enhance sales efforts, boost R&D capabilities, expand production capacity and global footprint, and actively seek external collaborations, strategic investments, and acquisition opportunities[44](index=44&type=chunk) [II. 財務回顧](index=16&type=section&id=II.%20Financial%20Review) This section provides a detailed analysis of the company's financial performance for the six months ended June 30, 2025, covering revenue, costs, expenses, liquidity, capital expenditure, debt, and gearing ratio, noting the first-time recording of product commercialization revenue and a significant increase in finance costs due to redemption liabilities [收入](index=16&type=section&id=Revenue) This section analyzes the company's revenue sources and changes during the reporting period - For the six months ended June 30, 2025, the company's revenue was derived from the commercialization of RDN products, totaling **RMB 20.9 million** (2024: nil), comprising **RMB 20.5 million** from sale of goods and **RMB 0.4 million** from collaboration income[45](index=45&type=chunk) [銷售成本](index=16&type=section&id=Cost%20of%20Sales) This section details the cost of sales incurred by the company, primarily driven by product commercialization - For the six months ended June 30, 2025, the cost of sales was **RMB 11.2 million**, primarily due to the commercialization of the second-generation Iberis® RDN System (2024: nil)[46](index=46&type=chunk) [其他收入及收益](index=16&type=section&id=Other%20Income%20and%20Gains) This section explains the changes in other income and gains, attributing the decrease mainly to reduced exchange gains - Other income and gains decreased by **RMB 0.6 million** from RMB 1.4 million in the prior year to **RMB 0.8 million** in 2025, primarily due to a decrease in exchange gains[47](index=47&type=chunk) [行政開支](index=16&type=section&id=Administrative%20Expenses) This section analyzes the increase in administrative expenses, identifying professional service fees and depreciation as key contributing factors - Administrative expenses increased by **RMB 2.6 million** from RMB 7.1 million in the prior year to **RMB 9.7 million** in 2025, primarily due to an increase of **RMB 1.2 million** in professional service fees and **RMB 0.7 million** in depreciation expenses[48](index=48&type=chunk) [銷售及營銷開支](index=17&type=section&id=Selling%20and%20Marketing%20Expenses) This section outlines the primary components of selling and marketing expenses, including personnel costs and promotional activities - Selling and marketing expenses are primarily attributable to **RMB 0.7 million** for marketing personnel salaries and pension schemes, and **RMB 0.3 million** for RDN product marketing and promotion fees[49](index=49&type=chunk) [研發開支](index=17&type=section&id=Research%20and%20Development%20Expenses) This section details the changes in research and development expenses, attributing the decrease mainly to reduced depreciation and amortization - Research and development expenses decreased by **RMB 1.7 million** from RMB 21.8 million in the prior year to **RMB 20.1 million** in 2025, primarily due to a **RMB 2.3 million** decrease in depreciation and amortization expenses[50](index=50&type=chunk) Research and Development Expenses Breakdown (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Third-party contractor costs | 9,991 | 8,377 | | Employee benefit expenses | 3,730 | 4,579 | | Cost of raw materials and consumables used | 2,673 | 2,000 | | Depreciation and amortisation expenses | 1,064 | 3,337 | | Others | 2,632 | 3,498 | | Total | 20,090 | 21,791 | [財務成本](index=18&type=section&id=Finance%20Costs) This section analyzes the significant increase in finance costs, primarily due to transaction costs and interest related to redemption liabilities for subsidiary shares - Finance costs increased from **RMB 23.0 thousand** in the prior year to **RMB 6.6 million** in 2025, primarily due to **RMB 3.2 million** in transaction costs and **RMB 3.3 million** in interest attributable to redemption liabilities for shares in a subsidiary[53](index=53&type=chunk) [所得稅抵免](index=18&type=section&id=Income%20Tax%20Credit) This section reports the income tax credit recorded by the company during the reporting period - For the six months ended June 30, 2025, the company recorded an income tax credit of approximately **RMB 0.7 million** (2024: nil)[54](index=54&type=chunk) [期內虧損](index=18&type=section&id=Loss%20for%20the%20Period) This section summarizes the company's net loss for the period, indicating a reduction compared to the prior year - For the six months ended June 30, 2025, the company's net loss was **RMB 26.7 million** (2024: RMB 28.3 million), indicating a narrowed loss[55](index=55&type=chunk) [流動資金及財務資源](index=18&type=section&id=Liquidity%20and%20Financial%20Resources) This section provides an overview of the company's cash flows from operating, investing, and financing activities, as well as its overall liquidity position - For the six months ended June 30, 2025, net cash used in operating activities was **RMB 8.7 million**, primarily due to substantial research and development expenses and administrative expenses[56](index=56&type=chunk) - Net cash used in investing activities was **RMB 157.8 million**, mainly attributable to the purchase of **RMB 125.0 million** in time deposits[57](index=57&type=chunk) - Net cash generated from financing activities was **RMB 151.6 million**, primarily due to proceeds of **RMB 155.6 million** from a shareholder's subscription for equity in Zhejiang Bio-Heart Medical Technology Co., Ltd[58](index=58&type=chunk) - As of June 30, 2025, cash and cash equivalents amounted to **RMB 187.4 million**, a **7.4% decrease** from December 31, 2024, while net current assets increased to **RMB 389.2 million**, mainly due to an increase in time deposits[58](index=58&type=chunk) [資本開支](index=19&type=section&id=Capital%20Expenditure) This section details the company's capital expenditure during the reporting period, noting a decrease due to the completion of production facility acquisitions - Capital expenditure decreased from **RMB 19.8 million** in the prior year to **RMB 0.2 million** in 2025, primarily due to the completion of production facility acquisitions recorded in the previous period[59](index=59&type=chunk) [債務](index=19&type=section&id=Indebtedness) This section provides information on the company's debt position, including outstanding borrowings and changes in lease liabilities - As of June 30, 2025, the company had no outstanding borrowing balances or unutilized bank facilities[60](index=60&type=chunk) - Lease liabilities decreased from **RMB 8.3 million** as of December 31, 2024, to **RMB 7.6 million** as of June 30, 2025, primarily due to lease payments made during the reporting period[60](index=60&type=chunk) [資產負債比率](index=19&type=section&id=Gearing%20Ratio) This section analyzes the change in the company's gearing ratio, attributing the increase to redemption liabilities for subsidiary shares - The gearing ratio increased from **7.3%** as of December 31, 2024, to **25.6%** as of June 30, 2025, primarily due to an increase in redemption liabilities for shares in a subsidiary[61](index=61&type=chunk) [資本承擔](index=20&type=section&id=Capital%20Commitments) This section details the company's capital commitments, noting a decrease due to expenditures on leasehold improvements and property, plant, and equipment - As of June 30, 2025, capital commitments decreased from **RMB 71.8 million** as of December 31, 2024, to **RMB 44.0 million**, primarily due to expenditures on leasehold improvements and the acquisition of property, plant and equipment[62](index=62&type=chunk) [資產抵押](index=20&type=section&id=Pledge%20of%20Assets) This section confirms whether any of the company's assets are pledged as collateral - As of June 30, 2025, the company had no pledged assets[63](index=63&type=chunk) [或然負債](index=20&type=section&id=Contingent%20Liabilities) This section states whether the company has any significant contingent liabilities - As of June 30, 2025, the company had no material contingent liabilities[64](index=64&type=chunk) [重大投資、重大收購及出售事項](index=20&type=section&id=Material%20Investments%2C%20Material%20Acquisitions%20and%20Disposals) This section reports on any significant investment, acquisition, or disposal activities undertaken by the company during the reporting period - On December 31, 2024, an investor injected approximately **RMB 155.6 million** into Zhejiang Bio-Heart, resulting in the Group's interest in Zhejiang Bio-Heart being diluted from 100% to approximately 54.7%, which was treated as a disposal of interest in a subsidiary[65](index=65&type=chunk) - Except for the aforementioned disclosure, the company held no other material investments and made no material acquisitions or disposals of subsidiaries during the reporting period[66](index=66&type=chunk) [外匯風險](index=20&type=section&id=Foreign%20Exchange%20Risk) This section discusses the company's exposure to foreign currency risk and its management approach - The company faces foreign currency risk primarily from US dollar-denominated bank balances and currently has no foreign currency hedging policy, but management will monitor and consider hedging measures if necessary[67](index=67&type=chunk) [重大投資或資本資產之未來計劃](index=21&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Except as disclosed in this announcement, the Group has no other material capital expenditure plans as of the announcement date - As of the announcement date, the Group has no other material capital expenditure plans[68](index=68&type=chunk) [人力資源](index=21&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed 70 full-time employees, with total employee benefit expenses of approximately RMB 10.3 million, and the company invests in staff training and development, offers competitive remuneration, and terminated its 2022 H Share Award Scheme, repurchasing and canceling related H shares - As of June 30, 2025, the Group employed **70 full-time employees**, with total employee benefit expenses of approximately **RMB 10.3 million**[69](index=69&type=chunk) - The company provides continuous education and training programs for employees and assesses salaries, promotion opportunities, and career development based on performance[70](index=70&type=chunk) - The Board of Directors terminated the 2022 H Share Award Scheme and repurchased and canceled **519,900 H shares** on August 7, 2025, resulting in a change in registered capital[73](index=73&type=chunk) [所得款項用途](index=22&type=section&id=Use%20of%20Proceeds) This section discloses the planned and actual use of the company's net proceeds from its global offering as of June 30, 2025, including multiple reallocations of funds for R&D, production facilities, and general working capital - The net proceeds from the global offering were approximately **HKD 441.69 million**[74](index=74&type=chunk) - The company changed the use of net proceeds multiple times on March 31, 2023, February 8, 2024, and October 30, 2024, including reallocating funds for DCB R&D, acquisition of production facilities, construction of production facilities and sales centers, and general corporate and working capital purposes[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) Planned and Actual Use of Net Proceeds from Global Offering (as of June 30, 2025) | Use of Net Proceeds | Revised Allocation (HKD millions) | Unutilized Amount as of January 1, 2025 (HKD millions) | Amount Utilized During Reporting Period (HKD millions) | Unutilized Amount as of June 30, 2025 (HKD millions) | Expected Timeline for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Bioheart® clinical trials, registration and commercialization | 134.37 | 19.35 | 3.78 | 15.57 | December 2027 | | Continued development of RDN pipeline product, second-generation Iberis® | 77.71 | 11.50 | 11.50 | – | Not applicable | | Acquisition of production facilities for RDN pipeline product, second-generation Iberis® | 26.37 | – | – | – | Not applicable | | Construction of production facilities and sales centers and commercial operations | 51.48 | 19.05 | 0.16 | 18.89 | December 2027 | | R&D of other pipeline products | 12.34 | – | – | – | Not applicable | | General corporate and working capital purposes | 52.17 | 6.84 | 6.84 | – | Not applicable | | R&D of DCB | 87.25 | 2.35 | 2.35 | – | Not applicable | | **Total** | **441.69** | **59.09** | **24.63** | **34.46** | | [其他信息](index=26&type=section&id=Other%20Information) This section covers additional information regarding the company's corporate governance, securities transactions, dividends, and other relevant disclosures [優先購買權](index=26&type=section&id=Pre-emptive%20Rights) The company's articles of association or Chinese law do not contain provisions for pre-emptive rights requiring the company to offer new shares proportionally to existing shareholders - The company's articles of association or Chinese law do not contain pre-emptive rights provisions[80](index=80&type=chunk) [購買、銷售或贖回上市證券](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Except for the repurchase and cancellation of H shares under the 2022 scheme, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - Except for the repurchase and cancellation of H shares under the 2022 scheme, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period[81](index=81&type=chunk) [中期股息](index=26&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil) - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[82](index=82&type=chunk) [報告期間後的後續事項](index=26&type=section&id=Subsequent%20Events%20After%20the%20Reporting%20Period) Except as disclosed in this announcement, there have been no material subsequent events for the company or the Group after the reporting period and up to the date of this announcement - There have been no material subsequent events for the company or the Group after the reporting period and up to the announcement date[83](index=83&type=chunk) [證券交易標準守則](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company has adopted the Standard Code as a code of conduct for securities transactions by directors, supervisors, and senior management, and confirms compliance throughout the reporting period - The company has adopted the Standard Code as a code of conduct for securities transactions by directors, supervisors, and senior management, and confirms compliance throughout the reporting period[84](index=84&type=chunk) [企業管治守則](index=27&type=section&id=Corporate%20Governance%20Code) The company has adopted and complied with all applicable code provisions of the Corporate Governance Code during the reporting period, with the exception of the Chairman and Chief Executive Officer roles being held by the same individual, which the Board believes benefits Group management and strategy execution - The company has adopted and complied with all applicable code provisions of the Corporate Governance Code during the reporting period[85](index=85&type=chunk) - The roles of Chairman and CEO are held by Mr. Wang, which constitutes a deviation from Code Provision C.2.1 of the Corporate Governance Code, but the Board believes this arrangement benefits Group management and strategy execution[86](index=86&type=chunk) [審閱中期業績](index=27&type=section&id=Review%20of%20Interim%20Results) The Audit Committee has reviewed the Group's interim results and adopted accounting principles and policies for the reporting period, concluding that the interim results are properly prepared and disclosed in accordance with applicable accounting standards, rules, and regulations - The Audit Committee has reviewed the Group's interim results and accounting principles, concluding that the interim results are properly prepared and disclosed[89](index=89&type=chunk) [刊發2025年簡明綜合中期業績及中期報告](index=28&type=section&id=Publication%20of%202025%20Interim%20Condensed%20Consolidated%20Results%20and%20Interim%20Report) This interim results announcement is published on the Stock Exchange website and the company's website, and the company's 2025 interim report will be published on the aforementioned websites in due course - The interim results announcement has been published on the Stock Exchange website and the company's website, and the interim report will be published in due course[90](index=90&type=chunk) [釋義](index=28&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used throughout the report to ensure consistent understanding for readers - This section provides definitions for key terms and abbreviations used in the report to ensure consistent understanding of the report's content[91](index=91&type=chunk)

[Report Overview](index=1&type=section&id=Report%20Overview) This section outlines the company's unaudited interim results for the six months ended June 30, 2025, with comparative figures and audit committee review [Company Information and Report Scope](index=1&type=section&id=Company%20Information%20and%20Report%20Scope) The company released its unaudited consolidated interim results for the six months ended June 30, 2025, reviewed by the audit committee, including 2024 comparative figures - Sichuan Energy Investment Development Co., Ltd. released its **unaudited consolidated interim results report** for the six months ended **June 30, 2025**[2](index=2&type=chunk) - The report includes **comparative figures for the same period in 2024** and has been **reviewed by the audit committee**[2](index=2&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial statements, including the income statement and balance sheet, for the reporting period [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) Operating revenue grew **10.9%** to **RMB 2.512 billion**, with net profit increasing **6.0%** to **RMB 146 million** and basic EPS at **RMB 0.14** for the six months ended June 30, 2025 Consolidated Income Statement Key Data (For the six months ended June 30) | Metric | 2025 (RMB yuan) | 2024 (RMB yuan) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,511,827,271.15 | 2,264,588,613.72 | 10.9% | | Operating Cost | 2,196,558,527.18 | 1,966,133,179.39 | 11.7% | | Operating Profit | 175,308,453.29 | 170,536,432.93 | 2.8% | | Total Profit | 178,922,195.03 | 170,851,371.17 | 4.7% | | Net Profit | 145,965,262.61 | 137,758,617.43 | 6.0% | | Net Profit Attributable to Parent Company Shareholders | 145,307,314.02 | 137,799,706.39 | 5.4% | | Earnings Per Share (Basic and Diluted) | 0.14 | 0.13 | 7.7% | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) Total assets reached **RMB 7.441 billion**, up **1.08%** from year-end 2024, with total liabilities at **RMB 3.751 billion** and equity attributable to parent company shareholders at **RMB 3.619 billion** as of June 30, 2025 Consolidated Balance Sheet Key Data (As of June 30, 2025) | Metric | June 30, 2025 (RMB yuan) | December 31, 2024 (RMB yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 7,440,900,030.43 | 7,361,549,780.96 | 1.08% | | Total Current Assets | 1,922,637,196.21 | 2,004,055,122.24 | -4.06% | | Total Non-current Assets | 5,518,262,834.22 | 5,357,494,658.72 | 3.00% | | Total Liabilities | 3,750,513,594.82 | 3,676,433,841.24 | 1.99% | | Total Current Liabilities | 2,273,172,710.28 | 2,225,967,988.63 | 2.12% | | Total Non-current Liabilities | 1,477,340,884.54 | 1,450,465,852.61 | 1.85% | | Total Equity Attributable to Parent Company Shareholders | 3,619,232,770.13 | 3,614,620,222.83 | 0.13% | | Total Shareholders' Equity | 3,690,386,435.61 | 3,685,115,939.72 | 0.14% | [Notes to Financial Statements](index=7&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed explanations and breakdowns of the figures presented in the consolidated financial statements, including accounting policies and specific line items [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) Financial statements are prepared on a **going concern basis** under Chinese Enterprise Accounting Standards, with sufficient liquidity despite current liabilities exceeding current assets, and no significant accounting policy changes - Financial statements are prepared on a **going concern basis**, in compliance with **Chinese Enterprise Accounting Standards**[9](index=9&type=chunk) - As of **June 30, 2025**, current liabilities exceeded current assets by **RMB 350.5 million**, but the Group has **RMB 3.2388 billion** in unutilized bank credit facilities and continuous net operating cash inflows, with the Board deeming funds sufficient[9](index=9&type=chunk) - The Group had **no significant accounting policy changes** impacting performance and financial position in the current accounting period, nor did it adopt any new standards or interpretations not yet in effect[10](index=10&type=chunk) [Operating Revenue Details](index=7&type=section&id=Operating%20Revenue%20Details) Total operating revenue reached **RMB 2.512 billion** in H1 2025, predominantly from main business, with **RMB 2.280 billion** from power supply contracts and **RMB 226 million** from power installation engineering contracts Operating Revenue Composition (For the six months ended June 30) | Item | 2025 (RMB yuan) | 2024 (RMB yuan) | | :--- | :--- | :--- | | Main Business Revenue | 2,510,672,458.32 | 2,263,529,365.84 | | Other Business Revenue | 1,154,812.83 | 1,059,247.88 | | Total | 2,511,827,271.15 | 2,264,588,613.72 | Revenue from Contracts by Type (For the six months ended June 30) | Contract Type | 2025 (RMB yuan) | 2024 (RMB yuan) | | :--- | :--- | :--- | | Power Supply Contracts | 2,280,109,279.04 | 2,082,428,793.14 | | Power Installation Engineering Contracts | 226,340,749.55 | 176,083,942.32 | | Others | 5,377,242.56 | 6,075,878.26 | | Total | 2,511,827,271.15 | 2,264,588,613.72 | [Taxes and Surcharges](index=8&type=section&id=Taxes%20and%20Surcharges) Total taxes and surcharges increased to **RMB 10.14 million** in H1 2025 from **RMB 8.67 million** in H1 2024, mainly due to higher urban construction tax and other levies Taxes and Surcharges (For the six months ended June 30) | Item | 2025 (RMB yuan) | 2024 (RMB yuan) | | :--- | :--- | :--- | | Urban Construction Tax | 2,296,724.40 | 2,177,761.43 | | Education Surcharge | 909,058.70 | 1,041,914.50 | | Property Tax | 2,192,331.82 | 2,292,774.88 | | Others | 4,745,112.75 | 3,160,642.41 | | Total | 10,143,227.67 | 8,673,093.22 | [Finance Costs](index=8&type=section&id=Finance%20Costs) Finance costs surged **91.0%** to **RMB 12.65 million** in H1 2025, driven by higher interest expenses on loans and payables, despite reduced deposit interest income Finance Costs (For the six months ended June 30) | Item | 2025 (RMB yuan) | 2024 (RMB yuan) | | :--- | :--- | :--- | | Interest Expense on Loans and Payables | 12,306,553.93 | 7,190,291.17 | | Interest Expense on Lease Liabilities | 158,541.17 | 135,668.96 | | Interest Income from Deposits | (1,345,053.92) | (1,854,374.43) | | Exchange Loss / (Gain) | 96,513.68 | 174,562.83 | | Other Finance Costs | 1,433,977.80 | 977,898.17 | | Total | 12,650,532.66 | 6,624,046.70 | [Investment Income and Credit/Asset Impairment](index=9&type=section&id=Investment%20Income%20and%20Credit%2FAsset%20Impairment) Investment losses remained stable, primarily from associates, while credit impairment losses increased due to other receivables, and asset impairment gains significantly decreased in H1 2025 Investment Income and Credit/Asset Impairment (For the six months ended June 30) | Item | 2025 (RMB yuan) | 2024 (RMB yuan) | | :--- | :--- | :--- | | Investment Income / (Loss) | (6,890,650.78) | (6,932,068.91) | | Credit Impairment Loss / (Gain) | (2,868,342.78) | (2,243,887.01) | | Asset Impairment Loss / (Gain) | 31,724.74 | 1,548,547.24 | - Investment losses primarily stemmed from **equity method losses on associates**, largely **flat year-on-year**[15](index=15&type=chunk) - Credit impairment losses increased, primarily due to **impairment losses on other receivables** shifting from gain to loss[15](index=15&type=chunk) - Asset impairment gains significantly decreased from **RMB 1.5485 million** to **RMB 31.7 thousand**[16](index=16&type=chunk) [Non-operating Income and Expenses and Income Tax](index=10&type=section&id=Non-operating%20Income%20and%20Expenses%20and%20Income%20Tax) Non-operating income significantly grew due to increased government grants, while non-operating expenses slightly rose, and income tax expense remained stable with a slightly lower effective tax rate in H1 2025 Non-operating Income and Expenses (For the six months ended June 30) | Item | 2025 (RMB yuan) | 2024 (RMB yuan) | | :--- | :--- | :--- | | Total Non-operating Income | 4,730,447.72 | 1,266,588.65 | | Of which: Government Grants | 4,125,828.17 | 165,311.92 | | Total Non-operating Expenses | 1,116,705.98 | 951,650.41 | Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB yuan) | 2024 (RMB yuan) | | :--- | :--- | :--- | | Current Year Income Tax | 32,993,512.81 | 31,716,360.35 | | Change in Deferred Income Tax | (36,580.39) | 1,376,393.39 | | Total | 32,956,932.42 | 33,092,753.74 | - A substantial increase in **government grants** was the primary reason for the growth in non-operating income[19](index=19&type=chunk) [Earnings Per Share and Dividends](index=10&type=section&id=Earnings%20Per%20Share%20and%20Dividends) Basic and diluted EPS increased to **RMB 0.14** in H1 2025 from **RMB 0.13** in H1 2024, with no interim dividend recommended, but a **RMB 0.14/share** final dividend paid for the prior fiscal year Earnings Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share (RMB yuan) | 0.14 | 0.13 | - No **interim dividend** was declared for the six months ended **June 30, 2025**[20](index=20&type=chunk) - The final dividend paid for the previous fiscal year was **RMB 0.14 per share** (2024: **RMB 0.13 per share**)[21](index=21&type=chunk) [Accounts Receivable and Inventories](index=11&type=section&id=Accounts%20Receivable%20and%20Inventories) Accounts receivable decreased **13.6%** to **RMB 766 million** due to improved collection, and inventories decreased **13.7%** to **RMB 55.75 million** due to enhanced efficiency as of June 30, 2025 Accounts Receivable (As of June 30, 2025) | Item | June 30, 2025 (RMB yuan) | December 31, 2024 (RMB yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Accounts Receivable | 766,474,771.15 | 887,571,798.18 | -13.6% | | Allowance for Doubtful Accounts | 173,555,769.33 | 172,445,554.89 | 0.64% | Inventories (As of June 30, 2025) | Inventory Type | June 30, 2025 (RMB yuan) | December 31, 2024 (RMB yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials | 52,803,733.27 | 64,538,234.26 | -18.18% | | Low-value Consumables | 2,942,321.57 | 93,736.30 | 3049.5% | | Total | 55,746,054.84 | 64,631,970.56 | -13.75% | - Accounts receivable decreased primarily due to **strengthened collection management**[63](index=63&type=chunk) - Inventories decreased primarily due to **strengthened management** and **improved inventory utilization efficiency**[62](index=62&type=chunk) [Fixed Assets and Bills/Accounts Payable](index=13&type=section&id=Fixed%20Assets%20and%20Bills%2FAccounts%20Payable) Fixed assets carrying value slightly decreased to **RMB 4.251 billion**, while bills payable included a new **RMB 150 million** letter of credit, and accounts payable decreased **30.9%** to **RMB 782 million** due to payments as of June 30, 2025 Carrying Value of Fixed Assets (As of June 30, 2025) | Item | June 30, 2025 (RMB yuan) | December 31, 2024 (RMB yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Buildings and Structures | 926,989,676.58 | 938,070,837.52 | -1.18% | | Machinery and Equipment | 3,199,471,598.99 | 3,183,386,795.77 | 0.50% | | Transportation Vehicles | 19,585,764.51 | 19,600,543.89 | -0.07% | | Office and Other Equipment | 104,931,324.19 | 113,829,552.13 | -7.79% | | Total | 4,250,978,364.27 | 4,254,887,729.31 | -0.09% | Bills and Accounts Payable (As of June 30, 2025) | Item | June 30, 2025 (RMB yuan) | December 31, 2024 (RMB yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Bills Payable (Letter of Credit) | 150,000,000.00 | — | N/A | | Accounts Payable | 782,130,921.50 | 1,131,408,083.90 | -30.9% | - Accounts payable decreased primarily due to **reduced electricity fees payable to suppliers** and **concentrated payments for engineering and material costs** before the Spring Festival[64](index=64&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the company's operational performance, financial condition, and strategic outlook for the reporting period [Business Review](index=15&type=section&id=Business%20Review) The company, a vertically integrated power supplier in Yibin, saw H1 2025 operating revenue grow **10.9%**, but a new resident off-peak electricity price policy effective September 1 is projected to reduce 2025 revenue by **RMB 35-45 million** - The company is a **vertically integrated power supplier** in Yibin City, Sichuan Province, with businesses including **power generation, distribution and sales**, and **power engineering construction services**[25](index=25&type=chunk) - From **September 1, 2025**, residential users will implement an **off-peak electricity price policy**, projected to reduce **2025 operating revenue** by **RMB 35 million to RMB 45 million**[26](index=26&type=chunk) - As of **June 30, 2025**, the company owned and operated **6 hydropower stations** (total installed capacity of **127,030 kilowatts**) and multiple substations[28](index=28&type=chunk) [Overview](index=15&type=section&id=Overview) The company, a vertically integrated power supplier, achieved **10.9%** revenue growth and **6.0%** net profit growth in H1 2025, with a new off-peak electricity price policy expected to impact future revenue - The company is a **vertically integrated power supplier** in Yibin City, Sichuan Province, with businesses covering **power generation, distribution and sales**, and **power engineering construction services**[25](index=25&type=chunk) H1 2025 Key Financial Metrics (Year-on-Year Growth) | Metric | H1 2025 | Y-o-Y Growth | | :--- | :--- | :--- | | Operating Revenue | RMB 2,511.8 million | 10.9% | | Total Profit | RMB 178.9 million | 4.7% | | Net Profit | RMB 146.0 million | 6.0% | | Net Profit Attributable to Parent Company Shareholders | RMB 145.3 million | 5.4% | - From **September 1, 2025**, resident users will implement an **off-peak electricity price policy**, projected to reduce **2025 operating revenue** by **RMB 35.0 million to RMB 45.0 million**[26](index=26&type=chunk) [Operating Performance Analysis](index=16&type=section&id=Operating%20Performance%20Analysis) Total operating revenue grew **10.9%** in H1 2025, but rising costs led to a **0.6 percentage point** drop in gross profit margin to **12.6%**, with general power supply and engineering services growing, while incremental power transmission declined Operating Performance by Business Segment (For the six months ended June 30) | Business | 2025 Operating Revenue (RMB yuan) | 2024 Operating Revenue (RMB yuan) | Operating Revenue Change (%) | 2025 Gross Profit Margin (%) | 2024 Gross Profit Margin (%) | Gross Profit Margin Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | General Power Supply Business | 2,141,012,171.75 | 1,929,812,253.14 | 10.9% | 12.3 | 13.3 | (1.0) | | Incremental Power Transmission and Distribution Business | 139,097,107.29 | 152,616,540.00 | (8.9%) | 5.6 | 5.6 | (0.03) | | Power Engineering Construction Services and Related Businesses | 231,717,992.11 | 182,159,820.58 | 27.2% | 18.8 | 17.8 | 1.0 | | **Total** | **2,511,827,271.15** | **2,264,588,613.72** | **10.9%** | **12.6** | **13.2** | **(0.6)** | [Revenue Composition by Business Segment](index=17&type=section&id=Revenue%20Composition%20by%20Business%20Segment) General power supply, the main revenue source, grew **12.1%** in sales volume, while incremental power transmission revenue decreased **8.9%**, and power engineering services revenue increased **27.2%** General Power Supply Business Revenue Details (For the six months ended June 30) | Customer Category | 2025 Electricity Sales (MWh) | 2025 Operating Revenue (RMB yuan) | 2024 Electricity Sales (MWh) | 2024 Operating Revenue (RMB yuan) | Electricity Sales Change (%) | Operating Revenue Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Household | 864,243.45 | 463,264,859.37 | 778,258.97 | 415,543,531.82 | 11.0 | 11.5 | | General Commercial and Industrial | 518,261.87 | 329,947,675.14 | 507,993.03 | 324,431,841.29 | 2.0 | 1.7 | | Large Industrial | 2,667,109.96 | 1,306,233,016.07 | 2,320,424.69 | 1,151,782,231.21 | 14.9 | 13.4 | | State Grid | 7,650.50 | 1,350,122.94 | 10,869.32 | 1,361,906.59 | (29.6) | (0.9) | | Others | 89,204.58 | 40,216,498.23 | 82,571.75 | 36,692,742.23 | 8.0 | 9.6 | | **Total** | **4,146,470.35** | **2,141,012,171.75** | **3,700,117.76** | **1,929,812,253.14** | **12.1** | **10.9** | - General power supply business accounted for **85.2% of total operating revenue**, serving as the **primary revenue source**[32](index=32&type=chunk) - Incremental power transmission and distribution business revenue decreased by **8.9%**, accounting for **5.5% of total revenue**[33](index=33&type=chunk) - Power engineering construction services and related businesses revenue increased by **27.2%**, accounting for **9.2% of total revenue**[34](index=34&type=chunk) [Operating Highlights and Strategic Progress](index=18&type=section&id=Operating%20Highlights%20and%20Strategic%20Progress) The Group achieved significant progress in **grid infrastructure**, **green industry development**, **safety production**, **reform and innovation**, and **Party building**, securing special national debt funds for grid upgrades and enhancing operational efficiency - Grid infrastructure continued to be strengthened, advancing multiple **110 kV line and substation new construction and technical upgrade projects**, improving regional grid structure and enhancing **power supply capacity**[35](index=35&type=chunk) - Green industry flourished, with **3 distributed photovoltaic projects** and **2 energy storage projects** completed, a zero-carbon smart microgrid showcased, and the **'Zero-Carbon Smart Substation Evaluation Standard'** released[35](index=35&type=chunk) - Safety production remained stable, with **22,191 kilometers of lines inspected**, **1,315 hazards rectified**, and **RMB 1.5973 million** invested in rectification[36](index=36&type=chunk) - Reform effectiveness gradually released, rated as an **AAA-level credit enterprise** and 'Tianfu Comprehensive Reform Excellent Enterprise', with a **technology talent remuneration incentive scheme** formulated and **945 core key talents identified**[38](index=38&type=chunk) - Successfully applied for the **'Yibin City 2025 Distribution Network Equipment Upgrade Project'**, approved for **ultra-long-term special national debt funds of RMB 29.7444 million**[38](index=38&type=chunk) - Party building leadership continued to be strengthened, with **deep integration of Party building and business**, and the management team refined Party Committee decisions into **129 operational tasks**[39](index=39&type=chunk) [Financial Performance Analysis](index=20&type=section&id=Financial%20Performance%20Analysis) H1 2025 saw **10.9%** revenue growth, but gross margin declined to **12.6%** due to rising costs, while finance costs surged **91.0%**; net profit grew **6.0%**, and the debt-to-capital ratio increased to **30.2%** - Operating revenue increased by **10.9%** to **RMB 2.5118 billion**, primarily driven by the increased scale of **general power supply business** and **power engineering construction services**[41](index=41&type=chunk) - Operating costs increased by **11.7%** to **RMB 2.1966 billion**, consistent with the expanded business scale[45](index=45&type=chunk) - Gross profit margin decreased from **13.2% to 12.6%**, primarily due to **general power supply business** requiring procurement from **higher-priced suppliers**[49](index=49&type=chunk)[52](index=52&type=chunk) - Finance costs significantly increased by **91.0%** to **RMB 12.65 million**, primarily due to **increased interest expenses** resulting from a larger average loan scale[55](index=55&type=chunk) - Net profit increased by **6.0%** to **RMB 146 million**[58](index=58&type=chunk) - Construction in progress increased, primarily due to **new grid construction projects** added in **H1 2025**[59](index=59&type=chunk) - Inventories and accounts receivable decreased by **13.7%** and **13.6%** respectively, reflecting **improved management efficiency**[62](index=62&type=chunk)[63](index=63&type=chunk) - Accounts payable decreased by **30.9%**, primarily due to **payments for electricity and engineering projects**[64](index=64&type=chunk) - The debt-to-capital ratio increased from **18.8%** at year-end 2024 to **30.2%** as of **June 30, 2025**[67](index=67&type=chunk) [Analysis of Key Income Statement Items](index=20&type=section&id=Analysis%20of%20Key%20Income%20Statement%20Items) Total operating revenue grew **10.9%**, driven by core businesses, while operating costs rose **11.7%**, leading to a **0.6 percentage point** drop in gross margin; finance costs surged **91.0%**, and net profit increased **6.0%** Operating Revenue Segment Growth (For the six months ended June 30) | Business | 2025 Revenue (RMB yuan) | 2024 Revenue (RMB yuan) | Growth Rate (%) | | :--- | :--- | :--- | :--- | | General Power Supply Business | 2,141,012,171.75 | 1,929,812,253.14 | 10.9% | | Incremental Power Transmission and Distribution Business | 139,097,107.29 | 152,616,540.00 | -8.9% | | Power Engineering Construction Services and Related Businesses | 231,717,992.11 | 182,159,820.58 | 27.2% | - General power supply business revenue increased by **10.9%**, primarily due to an increase in **large industrial and general commercial and industrial customers**, and a **356,954.11 MWh increase in electricity sales**[42](index=42&type=chunk) - Incremental power transmission and distribution business revenue decreased by **8.9%**, primarily due to a **reduction in business scale**[43](index=43&type=chunk) - Power engineering construction services and related businesses revenue increased by **27.2%**, primarily due to an **increase in business scale**[44](index=44&type=chunk) - General power supply business gross profit margin decreased by **1 percentage point** to **12.3%**, as the increased scale required procurement from **higher-priced suppliers**[52](index=52&type=chunk) - Power engineering construction services and related businesses gross profit margin increased by **1 percentage point** to **18.8%**, due to **expanded business scale** and **settlement of higher-margin projects**[54](index=54&type=chunk) - Investment losses from associates remained largely **flat year-on-year**, primarily impacted by **losses from an associate in the new energy sector**[56](index=56&type=chunk) [Analysis of Key Balance Sheet Items](index=24&type=section&id=Analysis%20of%20Key%20Balance%20Sheet%20Items) Fixed assets, construction in progress, and right-of-use assets collectively increased due to new grid projects; intangible assets grew **2.8%**; inventories and accounts receivable decreased **13.7%** and **13.6%** respectively, and accounts payable decreased **30.9%** due to payments Fixed Assets, Construction in Progress, and Right-of-Use Assets (As of June 30, 2025) | Item | June 30, 2025 (RMB yuan) | December 31, 2024 (RMB yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Fixed Assets | 4,250,978,364.27 | 4,254,887,729.31 | -0.09% | | Construction in Progress | 620,377,002.35 | 458,196,521.73 | 35.39% | | Right-of-Use Assets | 8,068,844.01 | 8,059,476.63 | 0.12% | | **Total** | **4,879,424,210.63** | **4,721,143,727.67** | **3.35%** | - Total fixed assets, construction in progress, and right-of-use assets increased, primarily due to **new grid construction projects** added in **H1 2025**[59](index=59&type=chunk) - Intangible assets increased by **2.8%** to **RMB 216.7 million**, primarily due to **new cybersecurity protection and other software**[60](index=60&type=chunk) - Average inventory turnover days decreased from **7.7 days to 4.9 days**, and average accounts payable turnover days increased from **68.6 days to 78.4 days**[62](index=62&type=chunk)[65](index=65&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, cash and cash equivalents were **RMB 607 million**, total borrowings were **RMB 1.116 billion**, and the debt-to-capital ratio increased to **30.2%**, indicating higher debt levels Liquidity and Borrowings (As of June 30, 2025) | Item | June 30, 2025 (RMB yuan) | December 31, 2024 (RMB yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 606,700,000.00 | 553,900,000.00 | 9.53% | | Total Borrowings | 1,115,700,000.00 | 692,600,000.00 | 61.09% | | Short-term Borrowings | 185,000,240.00 | 100,000,000.00 | 85.00% | | Letters of Credit (Bills Payable) | 150,000,000.00 | — | N/A | | Long-term Borrowings | 768,400,000.00 | 557,440,000.00 | 37.84% | - The debt-to-capital ratio increased from **18.8%** at December 31, 2024, to **30.2%** as of **June 30, 2025**[67](index=67&type=chunk) [Other Financial and Operating Information](index=26&type=section&id=Other%20Financial%20and%20Operating%20Information) The company has **RMB 192 million** in capital commitments for grid construction, no asset pledges or major transactions, **2,631 employees** with **RMB 246.4 million** in staff costs, and the Board recommended no interim dividend Outstanding Capital Commitments (As of June 30, 2025) | Item | June 30, 2025 (RMB yuan) | December 31, 2024 (RMB yuan) | | :--- | :--- | :--- | | Contracted | 192,020,613.80 | 249,937,305.28 | - As of **June 30, 2025**, the company had **2,631 employees**, with staff costs of approximately **RMB 246.4 million**[72](index=72&type=chunk) - The company is committed to achieving **employee diversity goals** and implements a **remuneration distribution mechanism linked to operating performance**[72](index=72&type=chunk)[73](index=73&type=chunk) - There were **no significant labor disputes, share option schemes, contingent liabilities, or major investments/acquisitions/disposals** during the reporting period[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - The Board recommended **not to declare any interim dividend** for the six months ended **June 30, 2025**[78](index=78&type=chunk) [Capital Operations and Future Outlook](index=29&type=section&id=Capital%20Operations%20and%20Future%20Outlook) This section details the utilization of global offering proceeds, future investment plans, post-reporting period events, and the company's strategic outlook [Use of Proceeds from Global Offering](index=29&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Of the **RMB 380.5 million** net proceeds from the global offering, **RMB 342 million** was utilized, with the remaining **RMB 38.565 million** reallocated to working capital for enhanced financial stability - Net proceeds from the global offering were approximately **RMB 380.5 million**, with approximately **RMB 342 million utilized** as of **June 30, 2025**[79](index=79&type=chunk) Changes in Use of Net Proceeds from Global Offering (As of June 30, 2025) | Purpose | Amount Planned in Prospectus (RMB thousand) | Unutilized as of January 1, 2025 (RMB thousand) | Revised Allocation (RMB thousand) | Utilized During Reporting Period (RMB thousand) | Unutilized as of June 30, 2025 (RMB thousand) | Updated Expected Completion Time for Remaining Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Acquisition of Power-related Assets | 152,193 | 36,993 | — | — | — | N/A | | Working Capital | 38,048 | 1,572 | 38,565 | 79 | 38,486 | Before December 31, 2025 | | **Total** | **380,483** | **38,565** | **38,565** | **79** | **38,486** | | - The remaining net proceeds originally designated for **acquiring power-related assets** have been **reallocated to supplement the Group's working capital**[79](index=79&type=chunk) [Future Investments and Capital Plans](index=31&type=section&id=Future%20Investments%20and%20Capital%20Plans) The company plans to accelerate **high-voltage grid construction**, investing approximately **RMB 297 million** in 110 kV line and substation projects, funded by **30% capital** and **70% bank loans**, targeting completion by **February 2026** - The company plans to accelerate **high-voltage grid construction**, including the **State Grid Qiuling to Huanyang, Ziyan to Fuxing 110 kV line projects**, and **Pingshan County Furong 110 kV transmission and transformation project**[81](index=81&type=chunk) - Total investment is approximately **RMB 297 million**, with funding from **30% capital** and **70% bank loans**[81](index=81&type=chunk) - The projects aim for substantial completion by the end of **February 2026**, to enhance **regional grid power supply assurance, operating efficiency, and service levels**[81](index=81&type=chunk) [Material Events After Reporting Period](index=31&type=section&id=Material%20Events%20After%20Reporting%20Period) No material events affected the Group after the reporting period, except for the **resident off-peak electricity price policy** implemented from **September 1, 2025** - After the reporting period, from **September 1, 2025**, residential electricity consumption in the Group's supply area will implement an **off-peak electricity price policy**[82](index=82&type=chunk) - Except for the **off-peak electricity price policy**, there were **no other material events** affecting the Group and its subsidiaries[82](index=82&type=chunk) [Strategic Outlook](index=31&type=section&id=Strategic%20Outlook) In H2 2025, the Group will focus on core business, strengthening development foundations by enhancing **supply assurance**, **transmission**, **operational capabilities**, and **green energy industry**, while also reinforcing **safety management** and **modern governance** - Key tasks for **H2 2025** include focusing on **core business**, maintaining **safety bottom lines**, enhancing **modern governance**, and striving for **stable operating performance**[83](index=83&type=chunk) - Strengthening development foundation includes enhancing **supply assurance** (full hydropower, natural gas, green energy), **transmission capacity** (grid infrastructure), **operational capabilities** (refinancing, M&A), **development capabilities** (distributed PV, storage), and **service capabilities** (customer satisfaction)[83](index=83&type=chunk)[84](index=84&type=chunk) - Strengthening safety management involves strictly controlling **grid safety** (substation pre-testing, hazard investigation), closely monitoring **project safety** (tripartite responsibilities, quality control), and enhancing **inherent safety** (personnel training, emergency drills)[85](index=85&type=chunk) - Enhancing modern governance includes improving **governance mechanisms** (optimizing rules, strengthening committees), strengthening **compliance management** ('grand risk control'), deepening **lean management** (cost reduction, asset revitalization), and scientifically formulating **plans** ('15th Five-Year' strategy)[86](index=86&type=chunk) - Party building leadership and assurance involves deepening **theoretical armament**, advancing **'Party Building+' projects**, forging a **first-class team** (talent梯隊 in scarce areas), and fostering a **clean and upright ecosystem** (integrity risk supervision)[87](index=87&type=chunk)[88](index=88&type=chunk) [Corporate Governance and Compliance](index=34&type=section&id=Corporate%20Governance%20and%20Compliance) This section outlines the company's adherence to corporate governance codes and securities trading standards, as well as public shareholding requirements [Corporate Governance and Securities Trading](index=34&type=section&id=Corporate%20Governance%20and%20Securities%20Trading) The company complied with **Listing Rules' Corporate Governance Code** and **Standard Code for securities trading**, with no purchases, sales, or redemptions of listed securities by the company or its subsidiaries during the period - The company complied with all code provisions of **Appendix C1 Part 2 of the Listing Rules' Corporate Governance Code** during the reporting period[89](index=89&type=chunk) - Directors and supervisors complied with the required standards for **securities transactions** in the **Standard Code** contained in **Appendix C3 of the Listing Rules**[90](index=90&type=chunk) - Neither the company nor any of its subsidiaries **purchased, sold, or redeemed any listed securities** of the company during the six months ended **June 30, 2025**[91](index=91&type=chunk) [Public Float and Report Publication](index=34&type=section&id=Public%20Float%20and%20Report%20Publication) As of June 30, 2025, the company maintained the **minimum public float** required by Listing Rules, with this interim results announcement published on the **HKEX and company websites** - As of **June 30, 2025**, the company maintained the **minimum public float** required by the Listing Rules[92](index=92&type=chunk) - This interim results announcement has been published on the **HKEX website** (www.hkexnews.com.hk) and the **company's website** (www.scntgf.com)[93](index=93&type=chunk) [Appendix](index=35&type=section&id=Appendix) This section provides supplementary information, including definitions of key terms and a list of the company's Board members [Definitions](index=35&type=section&id=Definitions) This section provides **definitions of key terms and abbreviations** used in the report to ensure consistent understanding of its content - This section provides **definitions of key terms and abbreviations** used in the report, such as **'Annual General Meeting'**, **'Corporate Governance Code'**, **'H Shares'**, **'RMB'**, etc[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) [Board Members](index=37&type=section&id=Board%20Members) This section lists the company's **Board members** as of the announcement date, including **executive, non-executive, and independent non-executive directors** - As of the announcement date, the company's **executive directors** are Mr. He Jing, Mr. Wang Yuanchun, and Ms. Xie Peixi[98](index=98&type=chunk) - Non-executive directors are Mr. Yao Gengsheng, Ms. Xie Beidi, Mr. Gao Bin, Mr. Kong Ce, and Mr. Xia Long[98](index=98&type=chunk) - Independent non-executive directors are Mr. Xiao Zhixiong, Mr. Chen Chuan, Mr. Mou Yingshi, Professor Li Jian, and Ms. He Yin[98](index=98&type=chunk)

[Unaudited Consolidated Statement of Profit or Loss](index=2&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the unaudited consolidated statement of profit or loss for the six months ended June 30, 2025 and 2024 Unaudited Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 551,268 | 127,590 | | Cost of sales | (487,665) | (94,318) | | Gross profit | 63,603 | 33,272 | | Other income, gains and losses, net | 12,707 | 16,194 | | Distribution expenses | (8,689) | (8,504) | | General and administrative expenses | (17,319) | (14,548) | | Share of results of associates | 201 | – | | Operating profit | 50,503 | 26,414 | | Finance costs | (4,302) | (3,805) | | Profit before tax | 46,201 | 22,609 | | Income tax expense | (1,265) | (3,512) | | Profit for the period | 44,936 | 19,097 | | Attributable to equity holders of the Company | 45,476 | 19,109 | | Basic and diluted earnings per share (RMB) | 0.186 | 0.092 | [Unaudited Consolidated Statement of Comprehensive Income](index=3&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Comprehensive%20Income) This section presents the unaudited consolidated statement of comprehensive income for the six months ended June 30, 2025 and 2024 Unaudited Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the period | 44,936 | 19,097 | | Exchange differences on translation of financial statements of foreign operations | (6,354) | (2,785) | | **Total comprehensive income for the period** | 38,582 | 16,312 | | Attributable to equity holders of the Company | 39,140 | 16,306 | | Attributable to non-controlling interests | (558) | 6 | [Unaudited Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the unaudited consolidated statement of financial position as of June 30, 2025 and December 31, 2024 Unaudited Consolidated Statement of Financial Position (As of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 1,737 | 1,897 | | Intangible assets | 22,898 | 18,639 | | Right-of-use assets | 1,463 | 2,437 | | Interests in associates | 21,742 | 21,000 | | **Total non-current assets** | 47,840 | 43,973 | | **Current assets** | | | | Inventories | 129,136 | 37,369 | | Contract assets | 1,268 | 6,031 | | Trade and other receivables | 311,297 | 182,543 | | Financial assets at fair value through profit or loss | 360,003 | 129,591 | | Pledged bank deposits | 54,371 | - | | Cash and cash equivalents | 88,496 | 160,575 | | **Total current assets** | 944,571 | 516,109 | | **Current liabilities** | | | | Trade and other payables | 176,748 | 45,379 | | Contract liabilities | 193,542 | 56,958 | | Lease liabilities | 407 | 1,234 | | Interest-bearing borrowings | 87,915 | 32,252 | | Current tax | 2,950 | 1,824 | | **Total current liabilities** | 461,562 | 137,647 | | **Net current assets** | 483,009 | 378,462 | | **Total assets less current liabilities** | 530,849 | 422,435 | | **Non-current liabilities** | | | | Lease liabilities | 1,142 | 1,310 | | **Net assets** | 529,707 | 421,125 | | **Total equity** | | | | Share capital | 21,535 | 21,535 | | Reserves | 386,629 | 347,489 | | Total equity attributable to equity holders of the Company | 408,164 | 369,024 | | Non-controlling interests | 121,543 | 52,101 | | **Total equity** | 529,707 | 421,125 | [Notes to the Unaudited Interim Financial Results](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Results) This section provides detailed notes on the unaudited interim financial results for the six months ended June 30, 2025, covering key financial information from preparation basis to comparative figures [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) The interim financial results are prepared in accordance with HKEX Listing Rules and IAS 34, using consistent accounting policies with the 2024 annual financial statements, excluding expected 2025 changes - Financial results are prepared in accordance with applicable disclosure provisions of the HKEX Listing Rules and International Accounting Standard 34, authorized for issue on August 26, 2025[10](index=10&type=chunk) - Prepared using the same accounting policies as the 2024 consolidated financial statements, excluding expected accounting policy changes for the 2025 consolidated financial statements[10](index=10&type=chunk) [2. Changes in Accounting Policies](index=7&type=section&id=2.%20Changes%20in%20Accounting%20Policies) The Group adopted new IFRS standards, but these amendments did not cause significant changes to its accounting policies or reported amounts - Adoption of amendments to IAS 21 and IFRS 1 did not result in significant changes to the Group's accounting policies or reported amounts for current and prior periods[13](index=13&type=chunk) - The Group has not applied any new standards, amendments, or interpretations not yet effective for the current accounting period[14](index=14&type=chunk) [3. Segment Reporting](index=7&type=section&id=3.%20Segment%20Reporting) The Group operates primarily in software and hardware, offering integrated business software solutions and product sales, with securities trading and fresh cassava trade classified as "Other" segments - The Group's primary reportable segment is "Software and Hardware Business," providing software licenses, hardware product sales, and integrated business software solutions[15](index=15&type=chunk) - The "Other" non-reportable segments include securities trading and fresh cassava trade[15](index=15&type=chunk) Segment Revenue and Profit (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | **Software and Hardware Business Revenue** | 551,268 | 126,865 | +334.5% | | **Other Business Revenue** | – | 725 | -100% | | **Total Revenue** | 551,268 | 127,590 | +332.0% | | **Software and Hardware Business Adjusted Profit Before Tax** | 45,694 | 18,645 | +145.1% | | **Other Business Adjusted Profit Before Tax** | 5,807 | 9,107 | -36.2% | | **Total Adjusted Profit Before Tax** | 51,501 | 27,752 | +85.6% | Segment Assets and Liabilities (As of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | **Software and Hardware Business Assets** | 687,894 | 291,473 | +136.0% | | **Other Business Assets** | 245,930 | 258,010 | -4.8% | | **Total Reportable Segment Assets** | 933,824 | 549,483 | +70.0% | | **Software and Hardware Business Liabilities** | 341,294 | 121,644 | +180.6% | | **Other Business Liabilities** | 113,954 | 9,054 | +1158.6% | | **Total Reportable Segment Liabilities** | 455,248 | 130,698 | +248.3% | Geographical Revenue and Designated Non-current Assets (As of June 30) | Region | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Designated Non-current Assets (RMB thousands) | 2024 Designated Non-current Assets (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | China | 478,821 | 126,865 | 47,071 | 43,543 | | Thailand | – | 725 | – | – | | Hong Kong | 72,447 | – | 769 | 430 | | **Total** | 551,268 | 127,590 | 47,840 | 43,973 | [4. Revenue](index=12&type=section&id=4.%20Revenue) Total Group revenue significantly increased by 332% year-on-year to RMB 551,268,000, driven primarily by software licenses, hardware products, and other product sales - The Group's principal activities are the sale of software licenses, hardware products, and other products, and the provision of integrated business software solutions[23](index=23&type=chunk) Revenue by Category (For the six months ended June 30) | Revenue Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | Software maintenance and other services | 24,787 | 49,347 | -49.8% | | Sale of software licenses, hardware products and other products | 526,481 | 78,243 | +573.0% | | **Total Revenue** | 551,268 | 127,590 | +332.0% | [5. Other Income, Gains and Losses, Net](index=12&type=section&id=5.%20Other%20Income%2C%20Gains%20and%20Losses%2C%20Net) Net other income, gains, and losses for the period decreased to RMB 12,707,000, primarily due to reduced realized gains from financial assets at fair value through profit or loss, despite a swing from unrealized loss to gain Other Income, Gains and Losses, Net (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 558 | 240 | +132.5% | | Dividend income | 498 | 70 | +611.4% | | Exchange gains, net | 1,665 | 97 | +1616.5% | | Realized gains on disposal of financial assets at fair value through profit or loss | 1,446 | 17,174 | -91.6% | | Unrealized gains/(losses) on financial assets at fair value through profit or loss | 8,528 | (1,410) | From loss to gain | | Others | 12 | 23 | -47.8% | | **Total** | 12,707 | 16,194 | -21.5% | [6. Profit Before Tax](index=13&type=section&id=6.%20Profit%20Before%20Tax) Profit before tax for the period significantly increased to RMB 46,201,000, driven by revenue growth, despite higher finance and staff costs Profit Before Tax Deductions (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Finance costs | 4,302 | 3,805 | +13.1% | | Staff costs | 14,964 | 13,884 | +7.8% | | Amortisation of intangible assets | 971 | 1,162 | -16.4% | | Depreciation of property, plant and equipment | 313 | 313 | 0% | | Depreciation of right-of-use assets | 970 | 1,251 | -22.4% | | Lease expenses under short-term leases | 739 | 286 | +158.4% | [7. Income Tax Expense](index=14&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense for the period significantly decreased to RMB 1,265,000, primarily due to a 15% preferential income tax rate for a high-tech subsidiary in China Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | PRC enterprise income tax | (1,265) | (3,512) | -64.0% | - Beijing Dongfang Longma Software Development Co., Ltd. is recognized as a high-tech enterprise, enjoying a **15%** preferential income tax rate[30](index=30&type=chunk) - The Group is not subject to any income tax in the Cayman Islands, British Virgin Islands, and Hong Kong[30](index=30&type=chunk) [8. Dividends](index=15&type=section&id=8.%20Dividends) No dividends were paid or proposed for the six months ended June 30, 2025 - No dividends were paid or proposed for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[31](index=31&type=chunk) [9. Basic and Diluted Earnings Per Share](index=15&type=section&id=9.%20Basic%20and%20Diluted%20Earnings%20Per%20Share) Basic and diluted earnings per share for the six months ended June 30, 2025, significantly increased to RMB 0.186, driven by higher profit attributable to equity holders Basic and Diluted Earnings Per Share (For the six months ended June 30) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousands) | 45,476 | 19,109 | +138.0% | | Weighted average number of ordinary shares (thousands) | 244,888 | 207,890 | +17.8% | | Dilutive effect of share options (thousands) | 34 | – | N/A | | **Basic and diluted earnings per share (RMB)** | 0.186 | 0.092 | +102.2% | - No assumption of exercise of the Company's share options was made for diluted earnings per share calculation for the six months ended June 30, 2024, as their exercise prices were higher than the average market price of shares[33](index=33&type=chunk) [10. Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=10.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Total financial assets at fair value through profit or loss increased to RMB 360,003,000 as of June 30, 2025, primarily due to significant increases in US-listed equity securities and unlisted investments in China Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Equity securities listed in Hong Kong | 331 | 375 | -11.8% | | Equity securities listed in the US | 239,672 | 129,216 | +85.5% | | Unlisted investments in China | 120,000 | – | N/A | | **Total** | 360,003 | 129,591 | +177.8% | - Fair value gains of approximately **RMB 9,974,000** on listed equity securities were recognized in profit or loss for the six months ended June 30, 2025[34](index=34&type=chunk) - The Group pledged approximately **RMB 148,694,000** of equity securities as collateral for amounts payable to brokers under trade and other payables[35](index=35&type=chunk) [11. Trade and Other Receivables](index=17&type=section&id=11.%20Trade%20and%20Other%20Receivables) Total trade and other receivables increased to RMB 311,297,000 as of June 30, 2025, mainly due to a substantial increase in prepayments to suppliers Trade and Other Receivables (As of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Trade receivables, net of loss allowance | 21,238 | 18,929 | +12.2% | | Prepayments to suppliers, net of impairment loss | 277,378 | 159,019 | +74.4% | | Deposits and other receivables, net of loss allowance | 12,681 | 4,595 | +175.9% | | **Total** | 311,297 | 182,543 | +70.5% | - All trade and other receivables are expected to be recovered within one year[36](index=36&type=chunk) - Prepayments are unsecured, non-interest bearing, and will be offset against future purchases from suppliers[38](index=38&type=chunk) [12. Trade and Other Payables](index=18&type=section&id=12.%20Trade%20and%20Other%20Payables) Total trade and other payables significantly increased to RMB 176,748,000 as of June 30, 2025, primarily due to a substantial increase in amounts payable to brokers Trade and Other Payables (As of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 38,424 | 25,897 | +48.4% | | Non-trade payables and accrued expenses | 29,932 | 19,235 | +55.6% | | Amounts payable to brokers | 108,035 | – | N/A | | Other tax payables | 357 | 247 | +44.5% | | **Total** | 176,748 | 45,379 | +289.5% | - All trade and other payables are expected to be settled within one year[39](index=39&type=chunk) [13. Interest-Bearing Borrowings](index=19&type=section&id=13.%20Interest-Bearing%20Borrowings) Total interest-bearing borrowings increased to RMB 87,915,000 as of June 30, 2025, primarily from bank loans, with RMB 50,000,000 being secured Interest-Bearing Borrowings (As of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Loan from a third party, unsecured and unguaranteed | 4,569 | 4,698 | -2.7% | | Loan from a former fellow subsidiary, unsecured and unguaranteed | 7,346 | 7,554 | -2.8% | | Loan from a bank, secured and guaranteed | 50,000 | – | N/A | | Loan from a bank, unsecured and guaranteed | 26,000 | 20,000 | +30.0% | | **Total** | 87,915 | 32,252 | +172.6% | - Loans from banks are secured by the Group's pledged bank deposits of approximately **RMB 54,371,000**[41](index=41&type=chunk) [14. Share Capital](index=19&type=section&id=14.%20Share%20Capital) The Company's issued and fully paid share capital remained at 244,888,185 shares with a total par value of HKD 24,488,818 (RMB 21,535,274 equivalent) as of June 30, 2025, consistent with December 31, 2024 Share Capital (As of June 30) | Item | June 30, 2025 (Number of shares) | December 31, 2024 (Number of shares) | | :--- | :--- | :--- | | Authorized: Ordinary shares of HKD 0.1 par value each | 10,000,000,000 | 10,000,000,000 | | Issued and fully paid: Ordinary shares of HKD 0.1 par value each | 244,888,185 | 244,888,185 | | Issued and fully paid: HKD | 24,488,818 | 24,488,818 | | Issued and fully paid: RMB equivalent amount | 21,535,274 | 21,535,274 | - On June 13, 2024, the placement of **40,810,000 shares** was completed, raising net proceeds of approximately **RMB 78,193,000**[43](index=43&type=chunk) [15. Comparative Figures](index=20&type=section&id=15.%20Comparative%20Figures) Certain comparative figures have been reclassified to conform to the current period's presentation - Certain comparative figures have been reclassified to conform to the current period's presentation[44](index=44&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) This section details the Group's business performance, future strategies, financial position, and fundraising activities for the six months ended June 30, 2025, emphasizing growth in digital asset management and computing power services [Business Review](index=21&type=section&id=Business%20Review) The Group primarily provides integrated business software solutions and sells software/hardware products, achieving significant growth in digital asset management and computing power services, with revenue up 332% and net profit up 138% year-on-year - The Group is primarily engaged in providing integrated business software solutions and selling software licenses, hardware products, and other products[45](index=45&type=chunk) - Significant growth has been achieved in digital asset management and computing power-related services and products, incorporating edge computing and intelligent computing architecture into its services[47](index=47&type=chunk)[45](index=45&type=chunk) Key Financial Performance (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | Revenue | 551,268 | 127,590 | +332% | | Consolidated net profit attributable to equity holders of the Company | 45,476 | 19,109 | +138% | - The substantial increase in revenue is primarily due to the Group's continuous development of existing businesses and the entering into and completion of new contracts involving integrated IT solutions, edge computing, and intelligent computing data services[48](index=48&type=chunk) [Prospects](index=23&type=section&id=Prospects) The Company will continue to expand its existing businesses, focusing on the digital economy with computing power services as the main line, covering data, AI computing, edge computing, network and applications, digital asset operations, and accounting - The Company will continue to gradually expand its existing businesses, consolidating its core operations with software licenses and solutions as the driving force[50](index=50&type=chunk) - Actively developing the digital economy, focusing on computing power services upstream and downstream, covering data, AI computing, edge computing, network and applications, digital asset operations, and accounting[50](index=50&type=chunk) - Building a business-oriented implementation framework, emphasizing the synergy of innovation, industry, and financial chains, aiming to create a vibrant, innovation-led, open, and win-win digital economy ecosystem[51](index=51&type=chunk) - Adhering to a relatively conservative investment strategy, focusing on selecting internationally renowned enterprises with established market leadership in their respective fields, and remaining optimistic about the future development of the US stock market[52](index=52&type=chunk) [Financial Review](index=25&type=section&id=Financial%20Review) This section reviews the Group's financial performance for the six months ended June 30, 2025, including revenue, gross profit, finance costs, distribution expenses, general and administrative expenses, fair value changes of financial assets, and profit for the period, showing significant growth in revenue and net profit but a decline in gross margin [Revenue (Financial Review)](index=25&type=section&id=Revenue%20%28Financial%20Review%29) Revenue for the period significantly increased by 332% year-on-year to RMB 551,268,000, driven by strong growth in software licenses, hardware products, and other product sales, particularly servers and computing power servers Revenue Composition (For the six months ended June 30) | Revenue Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | Software maintenance and other services | 24,787 | 49,347 | -49.8% | | Sale of software licenses, hardware products and other products | 526,481 | 78,243 | +573.0% | | **Total Revenue** | 551,268 | 127,590 | +332.0% | - The substantial increase in revenue is primarily due to the Group's continuous development of existing businesses, increased sales of server products and computing power server products, and the entering into and completion of new contracts involving integrated IT solutions, edge computing, and intelligent computing data services[54](index=54&type=chunk) - Benefiting from the surge in demand for artificial intelligence and high-performance computing, the Group's computing infrastructure segment achieved significant revenue growth in the first half of 2025[54](index=54&type=chunk) [Gross Profit](index=26&type=section&id=Gross%20Profit) Gross profit for the period increased by 91% year-on-year to RMB 63,603,000, but the gross margin decreased from 26% to 12%, mainly due to a higher proportion of lower-margin server hardware and computing power server product sales Gross Profit and Gross Margin (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | Gross profit | 63,603 | 33,272 | +91.1% | | Cost of sales | 487,665 | 94,318 | +417.0% | | Software and hardware business gross margin | 12% | 26% | -14 percentage points | - The decrease in gross margin is primarily due to the increased proportion of sales of server hardware products and computing power server products, which have lower overall gross margins[55](index=55&type=chunk) [Finance Costs](index=26&type=section&id=Finance%20Costs) Finance costs increased to RMB 4,302,000, a 13.1% increase from RMB 3,805,000 in the prior period, mainly due to higher interest expenses on interest-bearing borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | Finance costs | 4,302 | 3,805 | +13.1% | - The increase in finance costs is due to higher interest expenses on interest-bearing borrowings[56](index=56&type=chunk) [Distribution Expenses](index=26&type=section&id=Distribution%20Expenses) Distribution expenses were approximately RMB 8,689,000, showing no significant fluctuation compared to RMB 8,504,000 in the prior period, primarily comprising staff costs and selling expenses for the software and hardware business in China Distribution Expenses (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | Distribution expenses | 8,689 | 8,504 | +2.2% | - Distribution expenses showed no significant fluctuation, primarily comprising staff costs and selling expenses for the software and hardware business in China during the period[57](index=57&type=chunk) [General and Administrative Expenses](index=26&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased to RMB 17,319,000, a 19.0% increase from RMB 14,548,000 in the prior period, mainly due to higher staff costs General and Administrative Expenses (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | General and administrative expenses | 17,319 | 14,548 | +19.0% | - The increase in general and administrative expenses is due to higher staff costs during the period[58](index=58&type=chunk) [Fair Value Changes and Gains on Disposal of Financial Assets at Fair Value Through Profit or Loss](index=27&type=section&id=Fair%20Value%20Changes%20and%20Gains%20on%20Disposal%20of%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group recorded an unrealized fair value gain of RMB 8,528,000 on financial assets at fair value through profit or loss (compared to a loss of RMB 1,410,000 in the prior period), but net realized gains on disposal significantly decreased to RMB 1,446,000 Fair Value Changes and Gains on Disposal of Financial Assets (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Unrealized fair value gains/(losses) | 8,528 | (1,410) | From loss to gain | | Realized gains on disposal of financial assets at fair value through profit or loss | 1,446 | 17,174 | -91.6% | [Profit for the Period](index=27&type=section&id=Profit%20for%20the%20Period) The Group recorded a net profit of RMB 44,936,000 for the six months ended June 30, 2025, a significant increase of 135.3% from RMB 19,097,000 in the prior period Net Profit for the Period (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year change | | :--- | :--- | :--- | :--- | | Net profit for the period | 44,936 | 19,097 | +135.3% | [Prepayments to Suppliers](index=27&type=section&id=Prepayments%20to%20Suppliers) Prepayments to suppliers increased to RMB 277,378,000 as of June 30, 2025, a substantial 74.4% increase from December 31, 2024, primarily linked to the significant expansion of the IT product sales business Prepayments to Suppliers (As of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Prepayments to suppliers | 277,378 | 159,019 | +74.4% | - The substantial increase in prepayments to suppliers is related to the significant expansion of the IT product sales business, which saw revenue increase by **573%** compared to the same period in 2024[61](index=61&type=chunk) [Liquidity and Financial Resources](index=28&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's working capital is primarily derived from operating and financing activities, with cash and cash equivalents at RMB 88,496,000, a current ratio of 2.05x, and a net debt-to-equity ratio of approximately 10% as of June 30, 2025 Liquidity Indicators (As of June 30) | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents (RMB thousands) | 88,496 | 160,575 | -44.9% | | Current ratio | 2.05x | 3.75x | -1.70x | | Net debt-to-equity ratio | 10% | Not applicable (cash more than borrowings) | N/A | Total Interest-Bearing Borrowings (As of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total interest-bearing borrowings | 87,915 | 32,252 | +172.6% | - Of the interest-bearing borrowings, **RMB 80,569,000** is repayable within one year, primarily denominated in RMB[63](index=63&type=chunk) - As of June 30, 2025, the Group had outstanding amounts payable to brokers of approximately **RMB 108,035,000** included in other payables, bearing interest at a fixed annual rate of **5.5%** and denominated in USD[63](index=63&type=chunk) [Foreign Exchange Risk](index=28&type=section&id=Foreign%20Exchange%20Risk) The Group's revenue and most monetary assets and liabilities are denominated in RMB, leading the directors to believe that foreign currency risk is not significant and hedging is currently unnecessary - The Group's revenue is primarily denominated in RMB, and most of its monetary assets and liabilities are also denominated in RMB[64](index=64&type=chunk) - The directors believe that the Group's exposure to foreign currency risk is not significant, and no hedging is currently required[64](index=64&type=chunk) [Pledged Assets](index=28&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group pledged approximately RMB 54,371,000 in time deposits and RMB 148,694,000 in listed equity securities to secure loan financing from banks and other financial institutions Pledged Assets (As of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Time deposits | 54,371 | – | N/A | | Listed equity securities | 148,694 | – | N/A | - Pledged assets are used to secure certain loan financing granted to the Group[65](index=65&type=chunk) [Fundraising Activities and Use of Proceeds](index=29&type=section&id=Fundraising%20Activities%20and%20Use%20of%20Proceeds) The Group conducted fundraising activities through new share placements and rights issues, with net proceeds of RMB 78,193,000 from placement used for AI server procurement and RMB 102,653,000 from rights issue for general working capital and industrial park software projects [Placement of New Shares](index=29&type=section&id=Placement%20of%20New%20Shares) The Company completed the placement of 40,810,000 new shares at HKD 2.09 per share on June 13, 2024, raising net proceeds of approximately RMB 78,193,000, primarily reallocated for purchasing AI servers for sale - On June 13, 2024, **40,810,000** placement shares were successfully issued at a placement price of **HKD 2.09** per share[69](index=69&type=chunk) Net Proceeds from Placement and Use (As of June 30, 2025) | Item | Amount (RMB thousands) | Percentage | | :--- | :--- | :--- | | Net proceeds | 78,193 | 100% | | **Use of Proceeds:** | | | | General working capital | 23,459 | 30% | | Procurement of AI servers for sale | 54,734 | 70% | - The remaining unutilized net proceeds from the placement (approximately **RMB 54,734,000**) originally planned for AI data center investment have been reallocated for purchasing AI servers for sale[70](index=70&type=chunk) [Rights Issue](index=31&type=section&id=Rights%20Issue) The Company completed a rights issue on April 25, 2023, issuing 122,446,911 shares at HKD 0.85 per share, raising net proceeds of approximately RMB 102,653,000, mainly for general working capital of industrial park software projects and the Group - On April 25, 2023, a total of **122,446,911** rights shares were issued at a subscription price of **HKD 0.85** per share[73](index=73&type=chunk) Net Proceeds from Rights Issue and Use (As of June 30, 2025) | Item | Amount (RMB thousands) | Percentage | | :--- | :--- | :--- | | Net proceeds (original) | 90,653 | 100% | | **Use of Proceeds:** | | | | General working capital for industrial park software projects | 60,527 | 66.8% | | General working capital for the Group | 30,126 | 33.2% | - Net proceeds from the rights issue were approximately **HKD 102,653,000** (approximately **RMB 90,653,000**), primarily used for general working capital of industrial park software projects and the Group's general working capital[73](index=73&type=chunk)[76](index=76&type=chunk) [Major Investments, Significant Acquisitions and Disposals of Subsidiaries or Associates, or Future Plans for Major Investments and Capital Assets](index=34&type=section&id=Major%20Investments%2C%20Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20or%20Associates%2C%20or%20Future%20Plans%20for%20Major%20Investments%20and%20Capital%20Assets) The Group actively seeks valuable investment opportunities, including US-listed equity securities (e.g., Tesla) and unlisted investments in China via limited partnership agreements, particularly in biomedical enterprises, aiming for stable returns and alignment with long-term strategy [US-Listed Equity Securities](index=34&type=section&id=US-Listed%20Equity%20Securities) The Group holds an investment in Tesla Inc. shares, with a fair value of RMB 66,081,000 as of June 30, 2025, representing 6.7% of total assets, and recorded unrealized fair value losses of RMB 6,993,000 and realized losses of RMB 21,436,000 for the period US-Listed Equity Securities Investment (As of June 30, 2025) | Investment Name | Number of Shares | Fair Value (RMB thousands) | Percentage of Total Group Assets | | :--- | :--- | :--- | :--- | | Tesla Inc. | 29,000 | 66,081 | 6.7% | - For the six months ended June 30, 2025, the Tesla investment recorded an unrealized fair value loss of approximately **RMB 6,993,000** and a realized loss of approximately **RMB 21,436,000**[79](index=79&type=chunk) - The Group adheres to a relatively conservative investment strategy, focusing on selecting internationally renowned enterprises with established market leadership in their respective fields[80](index=80&type=chunk) [Limited Partnership Agreement](index=35&type=section&id=Limited%20Partnership%20Agreement) The Group invested RMB 50,000,000 in Qitong Fuyuan via a limited partnership agreement, acting as the sole executive general partner, whose financial results are consolidated. Qitong Fuyuan further invested in Hainan Yayao Limited Partnership, which acquired a 14.16% equity interest in Sailong Pharmaceutical Group Co., Ltd - The Group invested **RMB 50,000,000** in Qitong Fuyuan through Beijing Qizhan Edge Computing Technology Co., Ltd., holding a **41.67%** interest and acting as the sole executive general partner, with its financial results consolidated into the Group's accounts[81](index=81&type=chunk)[82](index=82&type=chunk) - Qitong Fuyuan further invested in Hainan Yayao Limited Partnership, with a committed capital contribution of **RMB 120,000,000**, representing a **60%** contribution ratio[85](index=85&type=chunk) - Hainan Yayao Limited Partnership acquired a **14.16%** equity interest in Sailong Pharmaceutical Group Co., Ltd. for **RMB 199,000,000** in July 2025, which will be classified as the Group's financial assets at fair value through profit or loss[83](index=83&type=chunk)[85](index=85&type=chunk) - The rapid development of the AI-driven pharmaceutical industry is revolutionizing the R&D framework, driving a surge in demand for advanced computing capabilities and hardware solutions[85](index=85&type=chunk) [Major Acquisitions and Disposals of Listed Securities](index=38&type=section&id=Major%20Acquisitions%20and%20Disposals%20of%20Listed%20Securities) The Group acquired and disposed of various Nasdaq-listed securities between June 1, 2023, and August 22, 2025, constituting discloseable transactions under the Listing Rules, which will be subject to shareholder ratification and specific authorization for future disposals - The Group acquired and disposed of various Nasdaq-listed securities between June 1, 2023, and August 22, 2025[89](index=89&type=chunk) - These acquisitions and/or disposals of listed securities constitute multiple discloseable transactions, major transactions, or very substantial disposals under Chapter 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[89](index=89&type=chunk) - The Company intends to propose ordinary resolutions at an EGM for shareholders to consider and approve the ratification of the acquisitions and disposals of listed securities and to seek specific authorization for future disposals[89](index=89&type=chunk) [Employees and Remuneration Policy](index=39&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 144 full-time employees, with staff costs of approximately RMB 14,960,000. Remuneration is based on performance, experience, and market conditions, with benefits including retirement, medical, and training Employees and Staff Costs (For the six months ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Number of full-time employees | 144 | 127 | | Staff costs (RMB thousands) | 14,960 | 13,900 | - Employee remuneration is determined with reference to their performance, experience, position, duties, and responsibilities within the Group, as well as prevailing market conditions[91](index=91&type=chunk) - The Group continues to provide state-managed social welfare benefits such as retirement and medical care to its employees in China, offers a Mandatory Provident Fund Scheme to eligible employees in Hong Kong, and regularly organizes training and development courses for its staff[91](index=91&type=chunk) [Contingent Liabilities](index=39&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[92](index=92&type=chunk) [Events After Reporting Period](index=39&type=section&id=Events%20After%20Reporting%20Period) Key post-reporting period events include the acquisition and disposal of listed securities, proposed specific authorizations, and Hainan Yayao Limited Partnership's acquisition of a 14.16% equity interest in Sailong Pharmaceutical Group Co., Ltd - Key post-reporting period events include the acquisition and disposal of listed securities and proposed specific authorizations as disclosed in the "Major Acquisitions and Disposals of Listed Securities" section[93](index=93&type=chunk) - Hainan Yayao Limited Partnership's acquisition of a **14.16%** equity interest in Sailong Pharmaceutical Group Co., Ltd. as disclosed in the "Major Investments, Significant Acquisitions and Disposals of Subsidiaries or Associates, or Future Plans for Major Investments and Capital Assets" section[93](index=93&type=chunk) [Other Information](index=40&type=section&id=Other%20Information) This section covers interim dividend policy, transactions in listed securities, directors' securities dealing code, corporate governance practices, and the audit committee's responsibilities and composition [Interim Dividends](index=40&type=section&id=Interim%20Dividends) The directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[95](index=95&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=40&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[96](index=96&type=chunk) [Standard Code for Securities Transactions by Directors](index=40&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Standard Code as its code of conduct for directors' securities transactions and confirmed that all directors complied with it during the 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 code of conduct for directors' securities transactions[97](index=97&type=chunk) - Following specific enquiries with all directors, the Company confirmed that all directors complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[97](index=97&type=chunk) [Corporate Governance Practices](index=40&type=section&id=Corporate%20Governance%20Practices) The Company adopted the Corporate Governance Code, and despite the roles of Chairman and CEO not being separated, the directors believe the Company complied with all relevant code provisions during the period - The Company has adopted the code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules as its corporate governance code[98](index=98&type=chunk) - Pursuant to Code Provision C.2.1 of the Corporate Governance Code, the roles of chairman and chief executive officer should be separate and not performed by the same individual. The Company has not appointed a chairman, and the roles and functions of the chairman are performed collectively by the Board[98](index=98&type=chunk) - Save for the above, the directors believe that the Company has complied with all relevant code provisions set out in the Corporate Governance Code for the six months ended June 30, 2025[98](index=98&type=chunk) [Audit Committee](index=41&type=section&id=Audit%20Committee) The Audit Committee, established on December 18, 2006, comprises three independent non-executive directors, primarily reviewing and overseeing financial reporting, risk management, and internal control systems, and has reviewed the unaudited interim financial results for the period - The Company established an Audit Committee on December 18, 2006, comprising three independent non-executive directors (Mr. Cai Jinliang, Mr. Chan Hung Sin, and Mr. Chan Kwok Hung)[99](index=99&type=chunk)[100](index=100&type=chunk) - The primary responsibilities of the Audit Committee are to review and supervise the financial reporting process and to review the Group's risk management and internal control systems[99](index=99&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim financial results for the six months ended June 30, 2025[99](index=99&type=chunk) [By Order of the Board](index=41&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Yu Hui, Executive Director and Chief Executive Officer of Qizhan Holdings Limited, on behalf of the Board, which includes two executive directors and three independent non-executive directors - This announcement is issued by Mr. Yu Hui, Executive Director and Chief Executive Officer of Qizhan Holdings Limited, on behalf of the Board[100](index=100&type=chunk) - The Board comprises two executive directors (Mr. Yu Hui, Ms. Li Zhuoyang) and three independent non-executive directors (Mr. Cai Jinliang, Mr. Chan Hung Sin, and Mr. Chan Kwok Hung)[100](index=100&type=chunk)

[Summary](index=1&type=section&id=Summary) The Group's revenue decreased by 14% to HK$40.9 million for the six months ended June 30, 2025, resulting in a loss of HK$5.2 million, with no interim dividend recommended [Performance Overview](index=1&type=section&id=Performance%20Overview) For the six months ended June 30, 2025, the Group's revenue decreased by 14% year-on-year to HK$40.9 million, turning from a profit to a loss of HK$5.2 million, with no interim dividend recommended by the Board Key Financial Indicators for H1 2025 | Indicator | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 40.9 | 47.2 | -14% | | (Loss)/Profit for the Period | (5.2) | 2.1 | Turned from profit to loss | - The Board does not recommend an interim dividend for the six months ended June 30, 2025[4](index=4&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the Group's consolidated financial performance and position, including statements of profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, Group revenue decreased by 14% year-on-year to HK$40,829 thousand, gross profit declined to HK$22,183 thousand, operating results turned from profit to a loss of HK$5,039 thousand, with a loss for the period of HK$5,198 thousand and basic loss per share of 1.627 HK cents Key Financial Data from Consolidated Statement of Profit or Loss | Indicator (HK$ Thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 40,829 | 47,210 | -14% | | Cost of Sales | (18,646) | (22,649) | -17.67% | | Gross Profit | 22,183 | 24,561 | -9.68% | | Other Income | 499 | 434 | +14.98% | | Selling and Distribution Costs | (5,535) | (4,049) | +36.70% | | Research and Development Expenses | (6,169) | (6,763) | -8.78% | | Administrative Expenses | (16,017) | (11,899) | +34.61% | | Operating (Loss)/Profit | (5,039) | 2,284 | Turned from profit to loss | | Finance Costs | (159) | (179) | -11.20% | | (Loss)/Profit Before Tax | (5,198) | 2,105 | Turned from profit to loss | | (Loss)/Profit for the Period | (5,198) | 2,105 | Turned from profit to loss | | Basic (Loss)/Earnings Per Share | (1.627) HK cents | 0.659 HK cents | Turned from profit to loss | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive expense for the period was HK$4,707 thousand, primarily due to a loss of HK$5,198 thousand, partially offset by exchange differences of HK$491 thousand Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator (HK$ Thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (5,198) | 2,105 | | Exchange differences on translation of financial statements of overseas operations | 491 | (675) | | Total comprehensive (expense)/income for the period | (4,707) | 1,430 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net assets were HK$57,064 thousand, a decrease of approximately 7.6% from December 31, 2024, primarily due to a reduction in reserves from the loss for the period, with total current assets of HK$63,484 thousand and current liabilities of HK$20,509 thousand Key Data from Consolidated Statement of Financial Position | Indicator (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 15,376 | 17,007 | -9.59% | | Current Assets | 63,484 | 76,925 | -17.47% | | Current Liabilities | 20,509 | 29,066 | -29.44% | | Net Current Assets | 42,975 | 47,859 | -10.20% | | Net Assets | 57,064 | 61,771 | -7.62% | | Share Capital | 31,956 | 31,956 | 0% | | Reserves | 25,108 | 29,815 | -15.79% | [Notes to Unaudited Interim Financial Statements](index=5&type=section&id=Notes%20to%20Unaudited%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures regarding the Group's interim financial statements, covering preparation basis, accounting policies, revenue, and key financial balances [1 Basis of Preparation](index=5&type=section&id=1%20Basis%20of%20Preparation) This interim financial report is prepared in accordance with the HKEX Listing Rules and HKAS 34, unaudited but reviewed and authorized for issue by the Audit Committee, involving management judgments, estimates, and assumptions - This interim financial report is unaudited but has been reviewed by the Company's Audit Committee and authorized for issue on August 26, 2025[8](index=8&type=chunk) - The preparation of the report requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[9](index=9&type=chunk) [2 Changes in Accounting Policies](index=5&type=section&id=2%20Changes%20in%20Accounting%20Policies) Revisions to HKFRS effective for the current accounting period had no significant impact on the Group's results or financial position, and no new standards or interpretations not yet effective have been applied - Certain amendments to Hong Kong Financial Reporting Standards issued by the HKICPA had no significant impact on the Group's results or financial position for the current or prior periods[11](index=11&type=chunk) [3 Revenue and Segment Reporting](index=6&type=section&id=3%20Revenue%20and%20Segment%20Reporting) The Group's primary business involves the development, sale, and distribution of smart card products, software, and hardware, along with related services, with revenue primarily recognized at a point in time, and management considers the Group to have only one operating segment, where Europe remains the largest revenue source despite a year-on-year decline, while Asia Pacific revenue increased - The Group's principal activities are the development, sale, and distribution of smart card products, software, and hardware, and the provision of related services[12](index=12&type=chunk) - Management considers the Group to have only one operating segment, and therefore no operating segment information is presented[14](index=14&type=chunk) Revenue from Contracts with Customers by Timing of Recognition | Revenue Recognition Timing | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | At a point in time | 40,829 | 47,128 | | Over time | – | 82 | | **Total** | **40,829** | **47,210** | Revenue from External Customers by Geographical Location | External Customer Revenue (by customer location, HK$ Thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Europe | 20,239 | 26,911 | -24.79% | | Asia Pacific | 15,175 | 12,211 | +24.27% | | Americas | 3,701 | 7,083 | -47.89% | | Middle East and Africa | 1,714 | 1,005 | +70.55% | | **Total** | **40,829** | **47,210** | -13.52% | [4 Loss/Profit Before Tax](index=7&type=section&id=4%20Loss%2FProfit%20Before%20Tax) For the six months ended June 30, 2025, the Group recorded a loss before tax of HK$5,198 thousand, with a slight decrease in finance costs, a significant increase in reversal of impairment loss on trade receivables, and government grant income Items Related to Loss/Profit Before Tax | Item (HK$ Thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 159 | 179 | -11.2% | | Amortisation of intangible assets | 908 | 908 | 0% | | Depreciation (owned property, plant and equipment) | 489 | 516 | -5.3% | | Depreciation (right-of-use assets) | 1,995 | 2,177 | -8.4% | | Government grant income | 49 | – | New | | Reversal of impairment loss on trade receivables | (1,547) | (63) | Significantly increased | | Write-down of inventories | 9 | – | New | | Interest income | 89 | 363 | -75.48% | - The Group successfully applied for a **HK$49,000** SME Marketing Fund from the Hong Kong Government, aimed at assisting SMEs in exploring markets outside Hong Kong[19](index=19&type=chunk)[20](index=20&type=chunk) [Income Tax](index=8&type=section&id=Income%20Tax) No income tax provision was made for the six months ended June 30, 2025 and 2024, as the Group recorded tax losses in Hong Kong, the Philippines, and mainland China - Due to tax losses incurred by the Group, no provision for Hong Kong profits tax, Philippine income tax, and PRC enterprise income tax was made for the six months ended June 30, 2025 and 2024[24](index=24&type=chunk) [6 Loss/Earnings Per Share](index=8&type=section&id=6%20Loss%2FEarnings%20Per%20Share) For the six months ended June 30, 2025, the Group reported a basic loss per share of 1.627 HK cents, compared to earnings per share of 0.659 HK cents in the prior period, with diluted loss per share being the same due to no potential dilutive ordinary shares Loss/Earnings Per Share Data | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic (Loss)/Earnings Per Share | (1.627) HK cents | 0.659 HK cents | | Diluted (Loss)/Earnings Per Share | (1.627) HK cents | 0.659 HK cents | - Basic loss/earnings per share is calculated based on the loss attributable to ordinary equity holders of the Company of **HK$5,198,000** (2024: profit of **HK$2,105,000**) and the weighted average number of ordinary shares in issue of **319,565,000** shares[22](index=22&type=chunk) [7 Trade and Other Receivables](index=9&type=section&id=7%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were HK$25,648 thousand, largely consistent with year-end 2024, though the aging structure of trade receivables shifted with a significant decrease in amounts due within one month and an increase in amounts due between three to twelve months and over one year Total Trade and Other Receivables | Item (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade receivables, net of loss allowance | 13,715 | 15,133 | -9.37% | | Other receivables | 11,933 | 10,463 | +14.05% | | **Total** | **25,648** | **25,596** | +0.20% | Aging Analysis of Trade Receivables | Aging of Trade Receivables (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 1 month | 4,898 | 13,662 | -64.18% | | 1 to 2 months | 3,906 | 1,119 | +249.0% | | 2 to 3 months | 1,432 | 47 | +2946.8% | | 3 to 12 months | 3,427 | 305 | +1023.6% | | Over 1 year | 52 | – | New | [Trade and Other Payables](index=10&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were HK$16,750 thousand, a significant decrease of 33.17% from year-end 2024, primarily due to substantial reductions in trade payables and customer advances, with a shift in the aging structure of trade payables showing a decrease in amounts due within one month Total Trade and Other Payables | Item (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade payables | 10,648 | 15,043 | -29.22% | | Accrued expenses | 3,755 | 3,223 | +16.51% | | Customer advances received | 2,347 | 6,797 | -65.47% | | **Total** | **16,750** | **25,063** | -33.17% | Aging Analysis of Trade Payables | Aging of Trade Payables (HK$ Thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 1 month | 6,781 | 13,390 | -49.36% | | 1 to 3 months | 2,272 | 1,537 | +47.82% | | 3 months to 1 year | 1,595 | 116 | +1275% | [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's financial performance, business operations, and future outlook, highlighting key drivers and strategic responses to market conditions [Financial Review](index=11&type=section&id=Financial%20Review) During the interim period, the Group's revenue declined by 14% due to external challenges and a lack of new government tenders, while gross margin improved, operating expenses increased by 22% due to staff additions and market expansion, and net assets decreased due to the loss for the period, leading to a shift from profit to loss, with no interim dividend recommended - Revenue decline was primarily impacted by US retaliatory tariffs, US-China trade conflicts, and a lack of new government tenders in the first half, with new products requiring more time to penetrate the market[27](index=27&type=chunk) - Total operating expenses increased by **22% to HK$27.7 million**, mainly due to higher staff costs from increased headcount and other operating expenses from new market development and product portfolio diversification during the interim period[29](index=29&type=chunk) - The Board does not recommend an interim dividend for the interim period[31](index=31&type=chunk) [Revenue](index=11&type=section&id=Revenue) The Group's revenue decreased by 14% to HK$40.9 million, primarily due to external trade conflicts and a lack of new government tenders Revenue Overview | Indicator | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 40.9 | 47.2 | -14% | - The revenue decline was primarily attributed to US retaliatory tariffs, US-China trade conflicts, and a lack of new government tenders in the first half, with new products requiring more time for market penetration[27](index=27&type=chunk) [Gross Margin](index=11&type=section&id=Gross%20Margin) Despite a challenging sales environment, the gross margin improved by 2% to 54%, reflecting enhanced efficiency and cost control Gross Margin and Gross Profit Changes | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Margin | 54% | 52% | +2% | | Gross Profit (HK$ Million) | 22.2 | 24.6 | -9.76% | - The improvement in gross margin reflects the Company's ability to enhance efficiency and strengthen production cost control amidst a challenging sales environment[28](index=28&type=chunk) [Operating Expenses](index=11&type=section&id=Operating%20Expenses) Total operating expenses increased by 22% to HK$27.7 million, driven by higher staff costs and market expansion efforts Total Operating Expenses | Indicator | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Total Operating Expenses | 27.7 | 22.7 | +22% | - The increase in operating expenses was primarily attributed to higher staff costs (increased headcount) and other operating expenses incurred from expanding into new markets and product diversification[29](index=29&type=chunk) [Statement of Financial Position](index=11&type=section&id=Statement%20of%20Financial%20Position) Net assets decreased by HK$4.7 million to HK$57.1 million, mainly due to the interim period's net loss, partially offset by exchange reserve movements Changes in Net Assets | Indicator | June 30, 2025 (HK$ Million) | Dec 31, 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Net Assets | 57.1 | 61.8 | -4.7 | - The decrease in net assets was primarily due to a net loss of **HK$5.2 million** during the interim period, partially offset by a **HK$0.5 million** change in exchange reserves[30](index=30&type=chunk) [Dividend](index=12&type=section&id=Dividend) The Board does not recommend the payment of an interim dividend for the period - The Board does not recommend an interim dividend[31](index=31&type=chunk) [Business Review](index=12&type=section&id=Business%20Review) The Group launched several new products and actively participated in international exhibitions to enhance brand awareness, while addressing intense market competition and global challenges by expanding product offerings, strengthening core products, and exploring new markets like the Americas and Southeast Asia, alongside reviewing pricing strategies and cost reduction measures - Several new products were launched in the first half, including the ACR1555U Secure Bluetooth NFC Reader, AquaGuard IP67 USB NFC Reader, second-generation WalletMate Mobile Wallet NFC Reader, and PocketKey+ FIDO Certified NFC USB Security Key[32](index=32&type=chunk) - Active participation in major exhibitions such as IOTE 2025, Japan IT Week Spring 2025, Smart IoT Indonesia 2025, and Identiverse 2025 received positive customer feedback[33](index=33&type=chunk) - Facing global challenges (post-pandemic environment, Russia-Ukraine conflict, US-China trade tensions), the Group is shifting its focus to the Americas and Southeast Asian markets, reviewing pricing strategies, and exploring cost reduction measures[34](index=34&type=chunk) [Prospects](index=13&type=section&id=Prospects) The Group maintains a positive outlook for future growth, anticipating new products to stimulate demand, with marketing focused on industry exhibitions to boost brand awareness, continued resource allocation for the developing Japan office, and ongoing emphasis on cost control and efficiency, with stable management structure expected - Newly launched and upcoming products are expected to stimulate customer demand and generate new sales revenue[35](index=35&type=chunk) - Marketing and advertising strategies will primarily involve active participation in industry exhibitions across various regions to enhance brand awareness, strengthen industry position, and establish connections with potential customers[35](index=35&type=chunk) - Business operations in Japan are still in the development stage, and the Group plans to allocate additional resources to support the growth of its office and market in the region[36](index=36&type=chunk) - The Group will continue to focus on cost control and efficiency improvements to support long-term profitability, with no significant changes expected in management[36](index=36&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=13&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) This section provides an overview of the Group's cash position, cash flow activities, and capital structure, highlighting changes in liquidity and financial resources [Overview of Liquidity, Financial Resources and Capital Structure](index=13&type=section&id=Overview%20of%20Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the Group's cash and cash equivalents decreased to HK$13.2 million from year-end 2024, with net cash outflows from operating, investing, and financing activities of HK$8.7 million, HK$1.7 million, and HK$2.2 million respectively, and a gearing ratio of 0% Cash and Net Assets | Indicator (HK$ Million) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 13.2 | 25.7 | -48.64% | | Net Assets | 57.1 | 61.8 | -7.61% | Cash Flow Activities | Cash Flow Activity (HK$ Million) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash outflow from operating activities | (8.7) | 6.1 (inflow) | | Net cash outflow from investing activities | (1.7) | (0.9) | | Net cash outflow from financing activities | (2.2) | (2.4) | - The Group's gearing ratio was **0%** as of June 30, 2025, consistent with December 31, 2024[39](index=39&type=chunk) [Other Financial Information](index=14&type=section&id=Other%20Financial%20Information) This section covers additional financial disclosures, including information on disposals, future investment plans, foreign exchange risk, asset pledges, and contingent liabilities [Disposals and Acquisitions](index=14&type=section&id=Disposals%20and%20Acquisitions) During the interim period, the Group did not undertake any significant disposals or investments in subsidiaries and associates - During the interim period, the Group did not have any significant disposals of or investments in subsidiaries and associates[40](index=40&type=chunk) [Future Plans for Material Investments or Capital Assets](index=14&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had no capital commitments for property, plant, and equipment acquisitions, nor any Board-authorized plans for other significant investments or capital asset increases - As of June 30, 2025, the Group had no capital commitments for the acquisition of property, plant, and equipment, nor any plans authorized by the Board for other material investments or additions to capital assets[41](index=41&type=chunk) [Foreign Exchange Fluctuation Risk](index=14&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The Group's assets, liabilities, and transactions are primarily denominated in HKD, USD, and RMB, with USD exchange risk not posing a significant financial impact due to the HKD peg, and foreign exchange risk managed through regular net exposure reviews - The Group's assets, liabilities, and transactions are primarily denominated in Hong Kong Dollars, US Dollars, and Renminbi, with US Dollar exchange risk not posing a significant financial impact[42](index=42&type=chunk) - The Group manages its foreign exchange risk by regularly reviewing its net foreign exchange exposure[42](index=42&type=chunk) [Pledge of Assets](index=14&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had not pledged any significant assets - As of June 30, 2025, the Group had not pledged any significant assets[43](index=43&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Company had no significant contingent liabilities - As of June 30, 2025, the Company had no significant contingent liabilities[44](index=44&type=chunk) [Employees and Remuneration Policy](index=14&type=section&id=Employees%20and%20Remuneration%20Policy) This section outlines the Group's workforce details and its approach to employee compensation and development [Overview of Employees and Remuneration Policy](index=14&type=section&id=Overview%20of%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 97 full-time staff with interim period staff costs of HK$16.9 million, committed to remuneration policies aligned with qualifications, performance, experience, and industry standards, and investing in team training for product and market understanding Employee and Remuneration Data | Indicator | June 30, 2025 | | :--- | :--- | | Number of full-time employees | 97 | | Staff costs for the interim period | 16.9 HK$ Million | - The Group is committed to ensuring remuneration policies and benefits align with employee qualifications, performance, experience, and industry standards, and provides training to enhance the team's understanding of products and market dynamics[45](index=45&type=chunk) [Continuing Connected Transactions](index=15&type=section&id=Continuing%20Connected%20Transactions) This section details the Group's ongoing transactions with related parties, including a cooperation agreement for smart technology projects [Overview of Continuing Connected Transactions](index=15&type=section&id=Overview%20of%20Continuing%20Connected%20Transactions) Longjie Guangdong, an indirect wholly-owned subsidiary, entered a three-year cooperation agreement with associate Zhongzhao for smart technology projects, with Zhongzhao providing free office space and support, and Longjie Guangdong paying a 10% service fee on revenue, totaling RMB62,000 as of June 30, 2025 - Longjie Smart Technology (Guangdong) Co., Ltd. (an indirect wholly-owned subsidiary of the Company) entered into a cooperation agreement with Guangdong Zhongzhao Industrial Group Co., Ltd. (an associate) to jointly develop smart technology projects for a period of three years (September 1, 2024 to August 31, 2027)[46](index=46&type=chunk) - Zhongzhao will provide office space and premises free of charge, along with production operations and business development support, while Longjie Guangdong is required to pay a service fee of **10% of revenue** to Zhongzhao and has already paid an advance of **RMB3,000,000**[46](index=46&type=chunk) Financial Data for Continuing Connected Transactions | Item | Amount | | :--- | :--- | | Longjie Guangdong operating revenue (as of June 30, 2025) | RMB620,000 | | Service fees paid to Zhongzhao (as of June 30, 2025) | RMB62,000 | - The annual caps for the cooperation agreement service fees are **RMB5,000,000** (2025), **RMB7,000,000** (2026), and **RMB9,000,000** (2027), with a total not exceeding **HK$10,000,000** within any 12-month period[47](index=47&type=chunk) [Dealings in Listed Securities of the Company](index=15&type=section&id=Dealings%20in%20Listed%20Securities%20of%20the%20Company) This section confirms that there were no purchases, sales, or redemptions of the Company's listed shares by the Company or its subsidiaries during the interim period [Overview of Dealings in Listed Securities](index=15&type=section&id=Overview%20of%20Dealings%20in%20Listed%20Securities) During the interim period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares - During the interim period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[48](index=48&type=chunk) [Corporate Governance](index=16&type=section&id=Corporate%20Governance) This section details the Company's adherence to corporate governance principles and policies, including compliance with the Corporate Governance Code and directors' securities dealing rules [Compliance with Corporate Governance Code](index=16&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code during the interim period, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Cheung Hok Kwan, which the Board believes facilitates strategy execution, with independent non-executive directors ensuring power balance and independent decision-making - The Company complied with the Corporate Governance Code during the interim period, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Cheung Hok Kwan, which deviates from Code Provision C.2.1[49](index=49&type=chunk) - The Board believes this combined role facilitates the continuous planning and execution of the Company's strategies, and with at least one-third of the Board members being independent non-executive directors, power balance, accountability, and independent decision-making are ensured[49](index=49&type=chunk) [Directors' Securities Transactions](index=16&type=section&id=Directors%27%20Securities%20Transactions) The Company adopted dealing rules for directors' securities transactions no less exacting than the Model Code, and all directors confirmed compliance with the Model Code during the interim period - The Company has adopted dealing rules for directors' securities transactions, the terms of which are no less exacting than the required standard set out in the Model Code[50](index=50&type=chunk) - All Directors have confirmed that they have complied with the required standard set out in the Model Code regarding directors' securities transactions throughout the interim period[50](index=50&type=chunk) [Audit Committee](index=17&type=section&id=Audit%20Committee) This section describes the Audit Committee's responsibilities and its review of the Group's interim financial results [Overview of Audit Committee](index=17&type=section&id=Overview%20of%20Audit%20Committee) The Audit Committee advises on external auditor appointments, remuneration, and terms, and reviews the Company's financial controls, internal controls, and risk management systems, having reviewed the Group's unaudited consolidated results for the six months ended June 30, 2025 - The Audit Committee is primarily responsible for making recommendations on the appointment, remuneration, and terms of engagement of external auditors, and reviewing the Company's financial controls, internal controls, and risk management systems[51](index=51&type=chunk) - The Audit Committee has reviewed the Group's unaudited consolidated results for the six months ended June 30, 2025, and discussed relevant financial matters with management[51](index=51&type=chunk) - The Audit Committee comprises four members: Dr. Lin Tat Pang (Chairman), Mr. Lai Chi Leung, Mr. Cheung Ting Fong, and Mr. Koo Tin Lung[51](index=51&type=chunk) [Board Information](index=17&type=section&id=Board%20Information) This section provides details on the composition of the Company's Board of Directors [Board Composition](index=17&type=section&id=Board%20Composition) As of the announcement date, the Board comprises ten members, including four executive directors, two non-executive directors, and four independent non-executive directors - The Board comprises four executive directors (Mr. Cheung Hok Kwan, Ms. Mak Yee Ki, Mr. Chan Chun Leung, and Ms. Hui Ting Ting), two non-executive directors (Mr. Mak Tsz Yip and Mr. Lam Chi Wai), and four independent non-executive directors (Dr. Lin Tat Pang, Mr. Lai Chi Leung, Mr. Cheung Ting Fong, and Mr. Koo Tin Lung)[53](index=53&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SMART GLOBE HOLDINGS LIMITED 竣球控股有限公司 （於開曼群島註冊成立的有限公司） • 竣球控股有限公司（「本公司」）及其附屬公司（統稱「本集團」）之財務表現 於截至2025年6月30日止六個月（「本期間」）轉虧為盈主要由於(i)本集團成 功開拓非洲撒哈拉以南市場，本期間對本集團供應鏈管理服務（尤其是物 流服務）的需求殷切；及(ii)本集團印刷分部的毛利率因成本控制措施而輕 微上升，令本期間的財務表現趨於穩定。 • 本公司董事（「董事」）會（「董事會」）不建議派付本期間之任何中期股息（截 至2024年6月30日止六個月（「2024年上半年」）：無）。 管理層討論與分析 董事會欣然宣佈本集團於本期間之未經審核簡明綜合中期業績，連同2024年同期 的比較數字。 業務回顧 供應鏈管理服務分部 （股份代號：1481） 截至2025年6月30日止六個月之 中期業績 | 財務概要 | | ...

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 會 對 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 （於開曼群島註冊成立的有限公司） （股份代號：1803） 中期業績公告 截 至2025年6月30日止六個月 北 京 體 育 文 化 產 業 集 團 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至2025年6月30日止六個月未經審核中 期 簡 明 綜 合 業 績，連 同2024年 同 期 之 比 較 數 字。中 期 簡 明 綜 合 業 績 未 經 審 核， 惟 已 由 本 公 司 審 計 委 員 會 審 閱。 中期簡明綜合損益及其他全面收益表 | | | 截 | | 至6月30日止六個月期間 | | | --- | --- | --- | --- | --- | --- | | | | | 2025年 | | 2024年 | | | 附 註 | | 千港 ...