如祺出行科技有限公司 （股份代號：9680） （於開曼群島註冊成立的有限公司） 截至2025年6月30日止六個月的 中期業績公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容所 產生或因依賴該等內容而引致的任何損失承擔任何責任。 Chenqi Technology Limited 董事會欣然宣佈本集團截至2025年6月30日止六個月的未經審核綜合中期業績，連同2024 年同期的比較數字。 | 財務摘要 | | | | | | | --- | --- | --- | --- | --- | --- | | | | | 截至6月30日止六個月 | | 同比變動 | | | | | 2025年 | 2024年 | | | | | | 人民幣千元 | 人民幣千元 | % | | | | | （未經審核） | （未經審核） | | | 收入 | | | 1,676,467 | 1,037,053 | 61.7 | | 毛利╱（毛損） | | | 37,438 | (32,445) | 215.4 | | 經營虧損 ...

Company Overview [Company Profile](index=8&type=section&id=Company%20Profile) IMAB Biopharma (Shanghai) Co., Ltd. is a research-driven biotech company focused on innovative immuno-oncology therapies, systematically leveraging both innate and adaptive immune systems with a rich pipeline of over ten innovative drug candidates and 12 clinical programs - Established in 2015, the company is one of the few biotech firms globally capable of systematically leveraging both innate and adaptive immune systems[14](index=14&type=chunk) - The company has designed over ten innovative drug candidates and has 12 ongoing clinical programs[14](index=14&type=chunk) [Product Pipeline Overview](index=8&type=section&id=Product%20Pipeline%20Overview) The company's product pipeline covers innate, innate and adaptive, and adaptive immune targets, with core products like IMM01, IMM2510, and IMM0306 advancing to late-stage clinical trials, showing significant progress in oncology, autoimmune, metabolic, and cardiovascular diseases Overview of Key Candidate Drug Development Status (As of the Announcement Date) | Project | Target (Structure) | Indication | Current Status / Upcoming Milestones | | :--- | :--- | :--- | :--- | | IMM01 (Tidapicic) | CD47 | MDS | May 2024, CDE Phase III Approval | | IMM01 (Tidapicic) | CD47 | First-line CMML | June 2024, CDE Phase III Approval; November FPI | | IMM01 + Tislelizumab | CD47+PD-1 | cHL | April 2024, CDE Phase III Approval; July FPI | | IMM2510 (Perverafusp alfa) | VEGFxPD-L1 (Bispecific) | First-line NSCLC | November 2023, IND Approval in China; December 2024 FPI | | IMM0306 (Amurefusp alfa) | CD47xCD20 (Bispecific) | R/R FL and MZL | December 2024, FL Cohort LPI | | IMM0306 (Amurefusp alfa) | CD47xCD20 | Systemic Lupus Erythematosus | October 2024 FPI; July 2025, Completion of First and Second Dose Cohort Enrollment | | IMC-003 (IMM72) | ActRIIA | PAH, Undisclosed | June 2025, IND Approval in China; August 2025 FPI | - All clinical and IND-stage drug candidates are classified as Class 1 new drugs[17](index=17&type=chunk) [Business Development](index=6&type=section&id=Business%20Development) The licensing and collaboration agreement with Axion Bio, a subsidiary of Instil Bio, Inc., continues to advance, with cumulative payments of **$30 million** received to date, including a recent **$5 million** second upfront payment and a **$10 million** milestone payment - The company received **$5 million** and **$10 million** payments from Axion Bio on May 7, 2025, and July 30, 2025, respectively[11](index=11&type=chunk)[45](index=45&type=chunk) - As of the announcement date, total payments received under the licensing and collaboration agreement with Axion Bio have reached **$30 million**[11](index=11&type=chunk)[45](index=45&type=chunk) Product R&D Progress [Core Product: IMM01 (Tidapicic) (SIRPα-Fc Fusion Protein)](index=2&type=section&id=Core%20Product%3A%20IMM01%20(Tidapicic)) IMM01, a core product, is China's first SIRPα-Fc fusion protein in clinical development, featuring a dual mechanism of action that avoids red blood cell binding, demonstrating good safety and encouraging anti-tumor activity, with multiple oncology indications in Phase II/III trials and non-oncology indications actively explored - IMM01 is China's first SIRPα-Fc fusion protein in clinical development, dually activating macrophages by interfering with CD47/SIRPα interaction and activating Fcγ receptors[18](index=18&type=chunk) - IMM01's modified CD47 binding domain avoids binding to human red blood cells, demonstrating good safety[18](index=18&type=chunk) [Oncology Indications](index=2&type=section&id=IMM01_Oncology%20Indications) [MDS (Myelodysplastic Syndromes)](index=2&type=section&id=IMM01_MDS) - The Phase II clinical trial of IMM01 combined with azacitidine as first-line treatment for higher-risk MDS patients met its primary endpoint, with an **ORR of 64.7%** and a **CR rate of 33.3%**[5](index=5&type=chunk)[19](index=19&type=chunk) - Efficacy improved with extended treatment, achieving an **ORR of 89.7%** and a **CR rate of 58.6%** in patients treated for ≥6 months[19](index=19&type=chunk) - The Phase III study of IMM01 combined with azacitidine for newly diagnosed higher-risk MDS patients has been approved by the NMPA[6](index=6&type=chunk)[22](index=22&type=chunk) [CMML (Chronic Myelomonocytic Leukemia)](index=2&type=section&id=IMM01_CMML) - The Phase II clinical trial of IMM01 combined with azacitidine as first-line treatment for CMML met its primary endpoint, with an **ORR of 72.7%** and a **CR rate of 27.3%**[5](index=5&type=chunk)[23](index=23&type=chunk) - Median PFS was **17.8 months**, with a **12-month PFS rate of 59.0%**[5](index=5&type=chunk)[23](index=23&type=chunk) - IMM01 combined with azacitidine for CMML has received Orphan Drug Designation from the FDA and NMPA approval for a Phase III study[6](index=6&type=chunk)[28](index=28&type=chunk) [cHL (Classical Hodgkin Lymphoma)](index=3&type=section&id=IMM01_cHL) - The Phase II clinical trial of IMM01 combined with tislelizumab for R/R cHL showed an **ORR of 69.7%** and a **CR rate of 24.2%**[6](index=6&type=chunk)[31](index=31&type=chunk) - Median DoR was **21.2 months**, median PFS was **14.7 months**, and the **18-month OS rate was 91.6%**[6](index=6&type=chunk)[31](index=31&type=chunk) - The Phase III clinical trial protocol for IMM01 combined with tislelizumab in PD-(L)1 antibody-refractory cHL patients has been approved by the NMPA, with the first patient dosed[6](index=6&type=chunk)[33](index=33&type=chunk) [Non-Oncology Indications (Atherosclerosis)](index=6&type=section&id=IMM01_Non-Oncology%20Indications_Atherosclerosis) - IND preparation for IMM01 in atherosclerosis is underway, with potential to block the CD47/SIRPα signaling pathway and induce macrophage-mediated plaque phagocytosis[12](index=12&type=chunk)[33](index=33&type=chunk) [Other Oncology Products](index=4&type=section&id=Other%20Oncology%20Products) The company's other oncology products show clinical development progress, including positive data for bispecific molecule IMM2510 in NSCLC and TNBC, good tolerability for next-generation CTLA-4 antibody IMM27M, and strong efficacy for CD47 and CD20 bispecific molecule IMM0306 in R/R FL and MZL [IMM2510 (Perverafusp alfa) (VEGF×PD-L1)](index=4&type=section&id=IMM2510%20(Perverafusp%20alfa)) - The IMM2510 monotherapy Phase Ib/II clinical trial has enrolled **150 patients**, including **34 NSCLC patients**, with data to be presented at WCLC 2025[7](index=7&type=chunk)[35](index=35&type=chunk) - In the Phase II study of IMM2510 combined with chemotherapy as first-line NSCLC treatment, **ORR was 61.9%** in **21 evaluable patients**, reaching **80.0%** in squamous NSCLC patients[7](index=7&type=chunk)[35](index=35&type=chunk) - The Phase Ib/II study of IMM2510 combined with IMM27M for advanced solid tumors was initiated in July 2024[7](index=7&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [IMM27M (Taizesubai Monoclonal Antibody) (CTLA-4 ADCC Enhanced Monoclonal Antibody)](index=17&type=section&id=IMM27M%20(Taizesubai%20Monoclonal%20Antibody)) - The IMM27M Phase I dose-escalation study has completed patient enrollment, with preliminary data showing good safety and tolerability, and **2 confirmed PRs** observed[37](index=37&type=chunk) - The cohort expansion study for hormone receptor-positive (HR+) and HER2-negative metastatic breast cancer was initiated in September 2024[37](index=37&type=chunk) [IMM0306 (Amurefusp alfa) (CD47×CD20) (Oncology Indications)](index=4&type=section&id=IMM0306%20(Amurefusp%20alfa)_Oncology%20Indications) - The Phase Ib trial of IMM0306 combined with lenalidomide for R/R FL and MZL showed good tolerability and strong preliminary anti-tumor activity[7](index=7&type=chunk)[39](index=39&type=chunk) - In the Phase IIa dose expansion clinical trial for R/R CD20-positive follicular lymphoma patients, **ORR was 88.2%** and **CRR was 52.9%**, with strong efficacy maintained as sample size increased[9](index=9&type=chunk)[39](index=39&type=chunk) [IMM2520 (CD47×PD-L1)](index=5&type=section&id=IMM2520%20(CD47%C3%97PD-L1)) - IMM2520 is a CD47 and PD-L1 dual-targeting bispecific molecule for solid tumors, with **26 patients** enrolled and dosed[9](index=9&type=chunk)[42](index=42&type=chunk) - Its unique structure avoids red blood cell binding and activates macrophages via an ADCC-enhanced IgG1 Fc fragment, inducing enhanced ADCP and ADCC activity[42](index=42&type=chunk) [Non-Oncology Products](index=5&type=section&id=Non-Oncology%20Products) The company has made significant progress in non-oncology therapeutics, including positive clinical data for IMM0306 in autoimmune diseases (SLE, NMOSD, LN), and IND preparation and early research for several metabolic and cardiovascular disease products (IMM72, IMM7220, IMM91) [Autoimmune Disease Products (IMM0306)](index=5&type=section&id=Autoimmune%20Disease%20Products%20(IMM0306)) - In the IMM0306 SLE Phase Ib trial, the proportion of patients with a SLEDAI-2000 score reduction of ≥4 points reached **85.7%** in the 0.8 mg/kg group and **87.5%** in the 1.2 mg/kg group, with good tolerability[9](index=9&type=chunk)[43](index=43&type=chunk) - The NMOSD Phase Ib trial has dosed its first patient, with enrollment for all three dose cohorts expected to be completed by August 2025[9](index=9&type=chunk)[43](index=43&type=chunk) - The Lupus Nephritis (LN) Phase II trial has received IND approval, and an IND application for IMM0306 subcutaneous formulation is planned for submission in the second half of 2025[9](index=9&type=chunk)[43](index=43&type=chunk) [Metabolic and Cardiovascular Disease Products](index=6&type=section&id=Metabolic%20and%20Cardiovascular%20Disease%20Products) - IMM72/IMC-003 received IND approval in June 2025 and initiated healthy volunteer enrollment in August[12](index=12&type=chunk)[43](index=43&type=chunk) - IMM7220/IMC-010 (GLP-1 x ActRIIA bispecific molecule) is undergoing in vivo efficacy studies, showing potential for treating obesity and promoting muscle growth[12](index=12&type=chunk)[43](index=43&type=chunk) - IMM91/IMC-011 (anti-pro/latent growth differentiation factor 8 (GDF8) antibody) is advancing IND preparation, with in vitro and in vivo studies indicating potential for muscle growth promotion[12](index=12&type=chunk)[47](index=47&type=chunk) [Other Non-Oncology Products (IMM67)](index=21&type=section&id=Other%20Non-Oncology%20Products%20(IMM67)) - IMM67 (recombinant human hyaluronidase) has completed registration as a pharmaceutical excipient, aiming to overcome volume limitations for subcutaneous injections[47](index=47&type=chunk) Financial Performance [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue significantly increased to **RMB 38.0 million**, primarily driven by collaboration payments, and despite increased R&D expenses, the loss for the period narrowed to **RMB 152.7 million** due to reduced impairment losses on property and equipment Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | Six Months Ended June 30, 2025 (RMB in thousands) | Six Months Ended June 30, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue | 38,027 | 77 | | Other income | 9,693 | 4,277 | | Net other gains and losses | (2,699) | (19,487) | | Research and development expenses | (168,044) | (119,138) | | Administrative expenses | (27,257) | (30,063) | | Finance costs | (2,445) | (1,426) | | Loss before tax | (152,725) | (165,760) | | Loss for the period | (152,725) | (165,760) | | Loss per share (RMB yuan) | (0.37) | (0.44) | [Revenue](index=7&type=section&id=Revenue) - For the six months ended June 30, 2025, revenue was **RMB 38.0 million**, a significant increase of **RMB 37.9 million** from **RMB 0.1 million** in the same period of 2024[13](index=13&type=chunk)[48](index=48&type=chunk) - The revenue increase was primarily attributable to upfront payments received under the licensing and collaboration agreement with Axion Bio, Inc[13](index=13&type=chunk)[48](index=48&type=chunk) [Other Income](index=22&type=section&id=Other%20Income) - Other income increased from **RMB 4.3 million** in the same period of 2024 to **RMB 9.7 million** in 2025, mainly due to a **RMB 5.3 million** increase in government grants[49](index=49&type=chunk) [Net Other Gains and Losses](index=23&type=section&id=Net%20Other%20Gains%20and%20Losses) - Net other gains and losses shifted from a **RMB 19.5 million** loss in the same period of 2024 to a **RMB 2.7 million** loss in 2025, primarily due to a **RMB 27.4 million** reduction in impairment losses on property and equipment[51](index=51&type=chunk) - Partially offset by a **RMB 6.9 million** decrease in fair value changes of financial assets measured at fair value through profit or loss, mainly due to the depreciation of HKD against RMB[51](index=51&type=chunk) [Research and Development Expenses](index=7&type=section&id=Research%20and%20Development%20Expenses) - Research and development expenses increased by **41.0%** from **RMB 119.1 million** in the same period of 2024 to **RMB 168.0 million** in 2025[13](index=13&type=chunk)[53](index=53&type=chunk) - Primarily attributable to a **RMB 43.4 million** increase in preclinical and CMC expenses (increased production and CDMO expenses for IMM01, IMM2510, and IMM0306), a **RMB 8.3 million** increase in clinical trial expenses, and a **RMB 4.9 million** increase in salaries and related benefits[13](index=13&type=chunk)[53](index=53&type=chunk) - Partially offset by a **RMB 6.7 million** decrease in share-based payments[53](index=53&type=chunk) [Administrative Expenses](index=25&type=section&id=Administrative%20Expenses) - Administrative expenses decreased by **9.3%** from **RMB 30.1 million** in the same period of 2024 to **RMB 27.3 million** in 2025, primarily due to a reduction in non-cash share-based payments[54](index=54&type=chunk) [Finance Costs](index=25&type=section&id=Finance%20Costs) - Finance costs increased from **RMB 1.4 million** in the same period of 2024 to **RMB 2.4 million** in 2025, primarily due to increased interest on borrowings[55](index=55&type=chunk) [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) - The company incurred no income tax expense for the six months ended June 30, 2025, and 2024[56](index=56&type=chunk) [Loss for the Period](index=25&type=section&id=Loss%20for%20the%20Period) - The Group's loss for the period decreased from **RMB 165.8 million** in the same period of 2024 to **RMB 152.7 million** in 2025[57](index=57&type=chunk) [Loss Per Share](index=38&type=section&id=Loss%20Per%20Share) - For the six months ended June 30, 2025, basic and diluted loss per share was **RMB 0.37**, a narrowing from **RMB 0.44** in the same period of 2024[94](index=94&type=chunk) [Condensed Consolidated Statement of Financial Position](index=39&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets less current liabilities were **RMB 553.2 million**, a decrease from December 31, 2024, with net current assets at **RMB 507.7 million** and total equity at **RMB 533.9 million** Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Non-current assets | 45,500 | 54,058 | | Current assets | 725,744 | 867,938 | | Current liabilities | 218,023 | 214,642 | | Net current assets | 507,721 | 653,296 | | Total assets less current liabilities | 553,221 | 707,354 | | Non-current liabilities | 19,340 | 29,049 | | Total equity | 533,881 | 678,305 | [Assets](index=39&type=section&id=Assets) - As of June 30, 2025, cash and cash equivalents were **RMB 405.4 million**, and financial assets measured at fair value through profit or loss were **RMB 298.3 million**[95](index=95&type=chunk) - Total current assets were **RMB 725.7 million**, a decrease from **RMB 867.9 million** as of December 31, 2024, primarily due to a reduction in assets classified as held for sale[95](index=95&type=chunk) [Liabilities](index=39&type=section&id=Liabilities) - As of June 30, 2025, current liabilities were **RMB 218.0 million**, including trade and other payables of **RMB 52.7 million** and borrowings of **RMB 128.0 million**[95](index=95&type=chunk) [Equity](index=39&type=section&id=Equity) - As of June 30, 2025, equity attributable to owners of the company was **RMB 534.6 million**, a decrease from **RMB 678.9 million** as of December 31, 2024[95](index=95&type=chunk) [Non-IFRS Measures](index=25&type=section&id=Non-IFRS%20Measures) The company uses adjusted net loss as a non-IFRS measure to provide a clearer comparison of operating performance, with an adjusted loss of **RMB 144.4 million** for the six months ended June 30, 2025, an increase from **RMB 120.7 million** in the same period of 2024 - Non-IFRS measures exclude the impact of share-based payments and impairment losses on property and equipment[58](index=58&type=chunk) Adjusted Loss for the Period | Metric | Six Months Ended June 30, 2025 (RMB in thousands) | Six Months Ended June 30, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Loss for the period | (152,725) | (165,760) | | Add: Share-based payment expenses | 8,302 | 17,701 | | Add: Impairment losses on property and equipment | — | 27,398 | | Adjusted loss for the period | (144,423) | (120,661) | Capital and Liquidity [Significant Acquisitions and Disposals](index=26&type=section&id=Significant%20Acquisitions%20and%20Disposals) On December 30, 2024, the company signed an agreement to dispose of 100% equity in Shanghai Zhangtou Yaoxin Technology Development Co., Ltd. for a maximum of **RMB 98.2 million**, with the transaction completed on February 21, 2025, ceasing to hold equity in the target company - The company disposed of 100% equity in Shanghai Zhangtou Yaoxin Technology Development Co., Ltd. for a maximum consideration of **RMB 98,188,983.55**[61](index=61&type=chunk) - As of the announcement date, the company has received the first two installments totaling **RMB 66,178,983.55**, and the target company is no longer a subsidiary of the company[61](index=61&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=26&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the company's cash and cash equivalents combined with financial assets at fair value through profit or loss totaled **RMB 703.7 million**, a decrease from year-end 2024, primarily due to cash outflows from operations and R&D activities, with increased net cash used in operating activities, increased net cash from investing activities, and decreased net cash from financing activities - As of June 30, 2025, cash and cash equivalents combined with financial assets measured at fair value through profit or loss totaled **RMB 703.7 million**, a decrease from **RMB 752.1 million** as of December 31, 2024[62](index=62&type=chunk) - Net cash used in operating activities amounted to **RMB 131.1 million**, an increase of **RMB 8.1 million** from the same period in 2024[63](index=63&type=chunk) - Net cash from investing activities was **RMB 45.2 million**, and net cash from financing activities was **RMB 16.1 million**, a decrease from the same period in 2024[63](index=63&type=chunk)[64](index=64&type=chunk) - The company has unutilized bank loan facilities of approximately **RMB 90 million** and manages surplus cash through investments in time deposits and wealth management products[65](index=65&type=chunk) [Gearing Ratio](index=27&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was **30.8%**, an increase of **4.4%** from **26.4%** as of December 31, 2024, primarily due to a decrease in total assets - As of June 30, 2025, the gearing ratio was **30.8%**, an increase of **4.4%** from **26.4%** as of December 31, 2024[66](index=66&type=chunk) - The increase in the ratio was primarily due to a decrease in assets classified as held for sale and cash and cash equivalents, leading to a reduction in total assets[66](index=66&type=chunk) [Indebtedness](index=28&type=section&id=Indebtedness) As of June 30, 2025, the company's unsecured bank borrowings increased to **RMB 137.0 million**, all bearing fixed interest rates, while lease liabilities decreased - As of June 30, 2025, unsecured bank borrowings were **RMB 137.0 million**, an increase from **RMB 115.4 million** as of December 31, 2024[67](index=67&type=chunk) - All bank borrowings bear fixed interest rates ranging from **2.8% to 3.6%**[67](index=67&type=chunk) - Lease liabilities decreased from **RMB 21.0 million** as of December 31, 2024, to **RMB 16.7 million** as of June 30, 2025[67](index=67&type=chunk) [Capital Commitments](index=28&type=section&id=Capital%20Commitments) As of June 30, 2025, the company's contracted but unprovided capital commitments amounted to **RMB 0.4 million**, primarily for the purchase of property and equipment - As of June 30, 2025, capital commitments were **RMB 0.4 million**, compared to none as of December 31, 2024[68](index=68&type=chunk) [Contingent Liabilities and Charges on Assets](index=28&type=section&id=Contingent%20Liabilities%20and%20Charges%20on%20Assets) As of June 30, 2025, the Group had no contingent liabilities or charges on assets - As of June 30, 2025, the Group had no contingent liabilities[69](index=69&type=chunk) - As of June 30, 2025, the Group had no charged assets[70](index=70&type=chunk) [Foreign Exchange Risk](index=28&type=section&id=Foreign%20Exchange%20Risk) The company faces foreign exchange risk on certain financial assets and liabilities, but the Board expects currency fluctuations will not materially impact business operations, and currently has no foreign currency hedging policy - Certain financial assets and liabilities of the Group are denominated in foreign currencies of the relevant group entities, exposing them to foreign exchange risk[71](index=71&type=chunk) - The Board expects that fluctuations in RMB exchange rates and other foreign currencies will not have a material impact on the Group's business operations[71](index=71&type=chunk) - The company currently has no foreign currency hedging policy and has not entered into any hedging transactions[71](index=71&type=chunk) [Significant Investments Held and Future Plans](index=28&type=section&id=Significant%20Investments%20Held%20and%20Future%20Plans) The company holds three redeemable structured note wealth management products with a total fair value of approximately **RMB 275 million** as of June 30, 2025, exceeding 5% of total assets, but recorded fair value losses due to HKD depreciation against RMB, and currently has no detailed future plans for significant investments or capital assets - The company holds three redeemable structured note wealth management products, with fair values of **RMB 47.8 million**, **RMB 40.5 million**, and **RMB 187.0 million**, respectively, as of June 30, 2025[72](index=72&type=chunk)[73](index=73&type=chunk) - The wealth management products recorded fair value change losses, primarily due to the depreciation of HKD against RMB[72](index=72&type=chunk) - As of June 30, 2025, the Group had no detailed future plans regarding significant investments or capital assets[74](index=74&type=chunk) Corporate Governance and Equity Matters [Employees and Remuneration Policy](index=29&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had **195 employees**, with total remuneration costs of **RMB 58.6 million**, a slight decrease from the prior year due to reduced non-cash share-based payments, offering competitive compensation, bonuses, and share-based payments, along with employee incentive plans and continuous training - As of June 30, 2025, the Group had a total of **195 employees**[75](index=75&type=chunk) - For the six months ended June 30, 2025, total remuneration costs were **RMB 58.6 million**, a decrease from **RMB 60.8 million** in the same period of 2024, primarily due to reduced non-cash share-based payments[75](index=75&type=chunk) - The company offers competitive salaries, bonuses, and share-based remuneration, and has adopted employee incentive plans[75](index=75&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards and complies with the Corporate Governance Code, though the Chairman and CEO roles are combined, which the Board believes benefits strategic planning and execution efficiency, and the Nomination Committee membership has been changed to enhance efficiency and diversity - During the reporting period, the company complied with all applicable code provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Dr. Tian Wenzhi[77](index=77&type=chunk) - The Board believes that combining these roles ensures leadership consistency, strategic planning and execution efficiency, and facilitates information exchange between management and the Board[77](index=77&type=chunk) - The Nomination Committee membership has been changed, adding two non-executive directors and independent non-executive directors to enhance efficiency and diversity[78](index=78&type=chunk) [H-share Full Circulation](index=31&type=section&id=H-share%20Full%20Circulation) The company has completed the full circulation of **14,114,006** unlisted shares converted into H-shares, which commenced listing and trading on the Stock Exchange on May 15, 2025 - The company received a filing notice from the China Securities Regulatory Commission regarding the conversion of **14,114,006** unlisted shares into H-shares[81](index=81&type=chunk) - These converted H-shares commenced listing on the Stock Exchange at 9:00 a.m. on May 15, 2025[81](index=81&type=chunk) [Use of Proceeds from Global Offering](index=32&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company's net proceeds from the global offering were approximately **HKD 251.3 million**, with allocation adjusted after shareholder approval; as of June 30, 2025, **HKD 206.4 million** has been utilized, and the remaining **HKD 44.9 million** is planned for use by the end of 2026, primarily for clinical development and commercialization of core product IMM01 and other products - Net proceeds from the global offering were approximately **HKD 251.3 million**[82](index=82&type=chunk) - The use of proceeds was adjusted and approved by shareholders on May 28, 2025[82](index=82&type=chunk) Use of Proceeds from Global Offering (As of June 30, 2025) | Intended Use | Revised Net Proceeds Allocation (HKD in millions) | Amount Utilized for the Period Ended June 30, 2025 (HKD in millions) | Unutilized Net Proceeds Balance as of June 30, 2025 (HKD in millions) | | :--- | :--- | :--- | :--- | | Funding for core product IMM01 | 115.5 | 21.7 | 22.5 | | Funding for IMM0306, IMM2902, and IMM2520 | 81.5 | 0.0 | 16.0 | | For planned clinical trials of IMM47 | 10.1 | 0.0 | 0.0 | | For ongoing clinical trials of IMM2510 and IMM27M | 12.6 | 0.0 | 0.0 | | For construction of new production facilities | 0.0 | 0.0 | 0.0 | | For R&D of multiple preclinical and discovery-stage assets | 12.6 | 0.0 | 0.0 | | For working capital and general corporate purposes | 19.0 | 0.0 | 6.4 | | **Total** | **251.3** | **21.7** | **44.9** | [Use of Proceeds from Placing](index=35&type=section&id=Use%20of%20Proceeds%20from%20Placing) The company's net proceeds from the placing were approximately **HKD 229.7 million**, primarily allocated to clinical research for IMM2510 combined with chemotherapy, IMM2510 combined with IMM27M, and IMM01 combination therapies, as well as supplementing working capital; as of June 30, 2025, **HKD 48.1 million** has been utilized, with the remaining **HKD 179.8 million** planned for use by mid-2027 - Net proceeds from the placing were approximately **HKD 229.7 million**[86](index=86&type=chunk) Use of Proceeds from Placing (As of June 30, 2025) | Intended Use | Allocated Net Proceeds (HKD in millions) | Amount Utilized for the Period Ended June 30, 2025 (HKD in millions) | Unutilized Amount as of June 30, 2025 (HKD in millions) | | :--- | :--- | :--- | :--- | | Funding for clinical research of IMM2510 combined with chemotherapy as first-line treatment for NSCLC, TNBC, and other solid tumors | 68.9 | 15.7 | 52.2 | | Funding for clinical research of IMM2510 combined with IMM27M for advanced solid tumors | 68.9 | 3.9 | 64.2 | | Funding for pivotal clinical research of IMM01 combined with azacitidine and IMM01 combined with tislelizumab | 23.0 | 14.6 | 8.4 | | Supplementing the company's working capital and for general corporate purposes | 68.9 | 13.9 | 55.0 | | **Total** | **229.7** | **48.1** | **179.8** | - The company plans to utilize the unutilized net proceeds balance from the placing by mid-2027[87](index=87&type=chunk) [Audit Committee](index=36&type=section&id=Audit%20Committee) The Audit Committee, comprising one non-executive director and two independent non-executive directors, reviewed the company's interim financial results for the six months ended June 30, 2025, and discussed financial reporting matters - The Audit Committee comprises Mr. Yang Zhida (Chairman), Dr. Xu Cong, and Dr. Zhu Zhenping[88](index=88&type=chunk) - The Audit Committee has reviewed the company's interim financial results for the six months ended June 30, 2025[88](index=88&type=chunk) [Material Events After Reporting Period](index=37&type=section&id=Material%20Events%20After%20Reporting%20Period) Except for matters disclosed in this announcement, there were no other material events after the end of the reporting period as of the announcement date - Save as disclosed in this announcement, there were no other material events after the end of the reporting period[89](index=89&type=chunk) [Transactions in Listed Securities and Dividends](index=37&type=section&id=Transactions%20in%20Listed%20Securities%20and%20Dividends) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor did they hold any treasury shares; the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[90](index=90&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[90](index=90&type=chunk) - The Board has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025[91](index=91&type=chunk) Future Outlook [Future and Outlook](index=21&type=section&id=Future%20and%20Outlook) The company anticipates continued candidate drug development and clinical application expansion in H2 2025, with plans to grow its international presence, rapidly advance clinical research in China, and leverage Chinese data to accelerate global clinical progress, while continuing to screen and evaluate other innate immune checkpoints to enrich its pipeline - The company will continue to advance candidate drug development, expand its clinical applications, and plans to broaden its international footprint[46](index=46&type=chunk) - It is expected to rapidly advance clinical research in China and potentially leverage Chinese data to accelerate clinical progress in other markets, saving time and costs in global clinical development[46](index=46&type=chunk) - The company will continue to screen and evaluate other innate immune checkpoints to enrich its pipeline with innovative therapies[46](index=46&type=chunk) Notes to Financial Statements [General Information and Basis of Preparation](index=40&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) IMAB Biopharma (Shanghai) Co., Ltd. was established in China in 2015, restructured as a joint stock company in 2022, and listed on the HKEX in September 2023; the condensed consolidated financial statements are presented in RMB, prepared in accordance with IAS 34 and the Listing Rules, and adopt the going concern basis of accounting - The company was incorporated in China on June 18, 2015, restructured as a joint stock company on June 14, 2022, and listed on the Main Board of the Stock Exchange of Hong Kong on September 5, 2023[96](index=96&type=chunk) - The condensed consolidated financial statements are presented in RMB, prepared in accordance with IAS 34 and the applicable disclosure requirements of the Listing Rules, and adopt the going concern basis of accounting[98](index=98&type=chunk) [Principal Accounting Policies](index=41&type=section&id=Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis and first applied IAS 21 (Amendments) 'Lack of Exchangeability' issued by the IASB during this interim period, which had no significant impact on the financial position and performance for the current and prior periods - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[99](index=99&type=chunk) - IAS 21 (Amendments) 'Lack of Exchangeability' was first applied during this interim period but had no significant impact on the financial position and performance[100](index=100&type=chunk) [Revenue and Segment Information](index=42&type=section&id=Revenue%20and%20Segment%20Information) The company's revenue primarily derives from collaboration development, cell line sales, and testing services, with collaboration development revenue significantly increasing due to the licensing and collaboration agreement with Axion Bio and recognized over time; the company operates as a single segment, with all non-current assets located in China Disaggregation of Revenue from Contracts with Customers (Six Months Ended June 30) | Type of Goods or Services | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Collaboration development | 37,995 | — | | Sales of cell lines and other products | 32 | 49 | | Testing services | — | 28 | | **Total** | **38,027** | **77** | | Geographical market: United States | 37,995 | — | | Geographical market: China | 32 | 77 | | Timing of revenue recognition: At a point in time | 32 | 77 | | Timing of revenue recognition: Over time | 37,995 | — | - Revenue from collaboration development services is recognized over time, with **RMB 30,920,000** received and recorded as contract liabilities as of June 30, 2025[104](index=104&type=chunk) - The Group has a single operating segment, and all non-current assets are located in China[107](index=107&type=chunk)[108](index=108&type=chunk) [Other Income (Notes Details)](index=44&type=section&id=Other%20Income_Notes) Other income primarily consists of government grants and bank interest income, with a significant increase in government grants mainly as incentives for R&D activities Other Income (Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Government grants | 5,987 | 642 | | Bank interest income | 3,706 | 3,635 | | **Total** | **9,693** | **4,277** | - Government grants are primarily provided as incentives for the Group's R&D activities[110](index=110&type=chunk) [Net Other Gains and Losses (Notes Details)](index=45&type=section&id=Net%20Other%20Gains%20and%20Losses_Notes) Net other gains and losses shifted from a **RMB 19.5 million** loss in the same period of 2024 to a **RMB 2.7 million** loss in 2025, primarily influenced by a reduction in impairment losses on property and equipment, partially offset by fair value losses on financial assets Net Other Gains and Losses (Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Net exchange (losses) gains | (2,354) | 1,378 | | (Losses) gains from fair value changes of financial assets measured at fair value through profit or loss | (340) | 6,540 | | Impairment losses on property and equipment | — | (27,398) | | Others | (5) | (7) | | **Total** | **(2,699)** | **(19,487)** | [Loss for the Period (Notes Details)](index=45&type=section&id=Loss%20for%20the%20Period_Notes) Loss before tax is stated after deducting total depreciation, directors' and supervisors' emoluments, and other staff costs, with total staff costs slightly decreasing due to reduced share-based payments Items Deducted in Loss Before Tax (Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Depreciation of property and equipment | 4,254 | 5,777 | | Depreciation of right-of-use assets | 3,095 | 5,147 | | **Total depreciation** | **7,349** | **10,924** | | Directors' and supervisors' emoluments | 11,544 | 13,415 | | Total staff costs | 58,567 | 60,846 | - The decrease in total staff costs was mainly due to a reduction in share-based payments[113](index=113&type=chunk) [Income Tax Expense (Notes Details)](index=45&type=section&id=Income%20Tax%20Expense_Notes) No provision for income tax expense was made as the company and its subsidiaries had no assessable profits during both periods - No provision for income tax expense was made as the company and its subsidiaries had no assessable profits during both periods[114](index=114&type=chunk) [Loss Per Share (Notes Details)](index=46&type=section&id=Loss%20Per%20Share_Notes) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the company was **RMB 0.37**, a narrowing from **RMB 0.44** in the same period of 2024, with no adjustment to basic loss per share as the Group had no potential dilutive ordinary shares - The loss used to calculate basic loss per share attributable to owners of the company for the period was **RMB (152,586) thousand** (2024: **RMB (165,760) thousand**)[115](index=115&type=chunk) - Basic and diluted loss per share was **RMB (0.37)** (2024: **RMB (0.44)**)[115](index=115&type=chunk) - Basic loss per share was not adjusted as the Group had no potential dilutive ordinary shares issued during the interim period[115](index=115&type=chunk) [Dividends (Notes Details)](index=46&type=section&id=Dividends_Notes) No dividends were paid, declared, or proposed during the interim period - No dividends were paid, declared, or proposed during the interim period[116](index=116&type=chunk) [Property and Equipment and Right-of-Use Assets (Notes Details)](index=46&type=section&id=Property%20and%20Equipment%20and%20Right-of-Use%20Assets_Notes) During this interim period, the Group incurred approximately **RMB 420,000** for the purchase of property and equipment and did not enter into any new lease agreements - During this interim period, the Group incurred approximately **RMB 420,000** for the purchase of property and equipment (same period in 2024: **RMB 5,904,000**)[117](index=117&type=chunk) - For the six months ended June 30, 2025, the Group did not enter into any new lease agreements[117](index=117&type=chunk) [Trade Receivables](index=47&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables amounted to **RMB 10 thousand**, primarily consisting of receivables over **180 days**, with the company typically granting customers a credit period of **30 days** or a specific agreed term Ageing Analysis of Trade Receivables (Net of Allowance for Credit Losses) | Ageing | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Within 30 days | — | 6 | | 31 to 60 days | 4 | 7 | | 61 to 120 days | — | — | | 121 to 180 days | — | 3 | | Over 180 days | 6 | — | | **Total** | **10** | **16** | - The Group generally grants customers a credit period of **30 days** or a specific period agreed with the customer[118](index=118&type=chunk) [Prepayments and Other Receivables](index=47&type=section&id=Prepayments%20and%20Other%20Receivables) As of June 30, 2025, total prepayments and other receivables amounted to **RMB 22.0 million**, primarily including receivables from the disposal of a subsidiary and prepayments for goods and R&D services Prepayments and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Receivables from disposal of a subsidiary | 14,017 | — | | Prepayments for purchase of goods and R&D services | 7,883 | 24,543 | | **Total** | **22,036** | **35,604** | [Trade and Other Payables](index=48&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to **RMB 52.7 million**, a decrease from year-end 2024, primarily comprising trade payables for R&D expenses, accrued outsourced R&D expenses, and accrued staff costs and benefits Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Trade payables for R&D expenses | 14,346 | 43,244 | | Accrued outsourced R&D expenses | 16,989 | 10,985 | | Accrued staff costs and benefits | 13,388 | 15,903 | | **Total** | **52,722** | **74,431** | - The Group's average credit period for purchases of goods/services is **45 days**[120](index=120&type=chunk) Definitions and Glossary

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the unaudited condensed consolidated statement of profit or loss for the six months ended June 30, 2025, compared to the same period in 2024, showing significant growth in revenue, gross profit, operating expenses, and profit for the period Key Financial Data from Condensed Consolidated Statement of Profit or Loss | Metric | Six Months Ended June 30, 2025 (thousand RMB) | Six Months Ended June 30, 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 4,025,400 | 3,946,324 | +2.0% | | Cost of Sales and Services | (3,542,053) | (3,520,500) | +0.6% | | Gross Profit | 483,347 | 425,824 | +13.5% | | Profit Before Tax | 97,583 | 22,397 | +335.7% | | Profit for the Period | 85,809 | 21,125 | +306.2% | | Profit Attributable to Owners of the Company | 39,416 | 1,586 | +2385.2% | | Basic Earnings Per Share | RMB 1.20 cents | RMB 0.05 cents | +2300.0% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the total comprehensive income for the six months ended June 30, 2025, including profit for the period and other comprehensive income (expense), reflecting the company's overall financial performance Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | Six Months Ended June 30, 2025 (thousand RMB) | Six Months Ended June 30, 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 85,809 | 21,125 | +306.2% | | Other Comprehensive (Expense) Income for the Period | (6,118) | 17,615 | -134.7% | | Total Comprehensive Income for the Period | 79,691 | 38,740 | +105.7% | | Total Comprehensive Income Attributable to Owners of the Company | 33,861 | 12,003 | +182.1% | - Other comprehensive income shifted from an income in the same period of 2024 to an expense in 2025, primarily due to net changes in fair value reserves and exchange differences[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section provides the condensed consolidated statement of financial position as of June 30, 2025, showing the company's asset, liability, and equity structure, reflecting its financial health at period-end Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 4,162,391 | 4,029,991 | +3.3% | | Current Assets | 9,606,525 | 10,417,837 | -7.8% | | Current Liabilities | 9,532,503 | 9,860,693 | -3.3% | | Non-current Liabilities | 1,501,893 | 1,195,363 | +25.6% | | Net Assets | 3,085,242 | 3,041,050 | +1.5% | | Equity Attributable to Owners of the Company | 1,992,026 | 1,973,393 | +0.9% | - Net current assets significantly improved from **74,022 thousand RMB** as of December 31, 2024, to **557,144 thousand RMB** as of June 30, 2025, partly due to an increase in long-term bank borrowings[123](index=123&type=chunk) - Bank balances and cash decreased to **3,160,344 thousand RMB**, while bills receivable and bills receivable at fair value through other comprehensive income decreased to **2,271,952 thousand RMB**[7](index=7&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, explaining the basis of preparation, changes in accounting policies, revenue and segment information, other income and losses, profit before tax components, income tax expense, earnings per share calculation, property-related assets and liabilities, receivables and payables, provisions, bank borrowings, and share capital and dividends [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with applicable disclosure requirements of the Listing Rules of The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34, on a going concern basis - The financial statements were authorized for issue on **August 26, 2025**[9](index=9&type=chunk) - The Board believes that preparing the financial statements on a going concern basis is appropriate, given the continuous financial support from Guangxi Automobile Group and the Group's existing financial resources[10](index=10&type=chunk)[11](index=11&type=chunk) [2. Changes in Accounting Policies](index=6&type=section&id=2.%20Changes%20in%20Accounting%20Policies) The Group has applied HKAS 21 (Amendment) 'The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability', but it has no significant impact on the condensed consolidated financial statements as the Group has no relevant foreign currency transactions - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[13](index=13&type=chunk) [3. Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) This section details the Group's revenue sources and operating segments, including automotive powertrain systems, auto parts and other industrial services, commercial vehicles, and other businesses, analyzing revenue and performance contributions from each segment [3(a) Disaggregation of Revenue](index=7&type=section&id=3%28a%29%20Disaggregation%20of%20Revenue) Revenue is disaggregated by type of goods and services, timing of revenue recognition, and geographical market, showing auto parts and accessories sales as the primary revenue source, with most revenue recognized at a point in time and originating from Mainland China Revenue Disaggregation (thousand RMB) | Revenue Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Sales of Engines and Related Components and Other Powertrain Products | 858,640 | 902,113 | | Sales of Auto Parts and Accessories | 2,490,680 | 2,331,161 | | Sales of Special Purpose Vehicles | 312,918 | 330,671 | | Other Goods and Services | 349,019 | 366,933 | | Rental Income | 14,143 | 15,446 | | **Total Revenue** | **4,025,400** | **3,946,324** | | Revenue Recognized at a Point in Time | 3,999,684 | 3,877,326 | | Revenue Recognized Over Time | 25,716 | 68,998 | | Revenue from Mainland China | 3,787,610 | 3,893,526 | | Revenue from Other Regions | 237,790 | 52,798 | - Revenue from other regions significantly increased from **52,798 thousand RMB** in the same period of 2024 to **237,790 thousand RMB** in 2025[14](index=14&type=chunk) [3(b) Segment Information](index=8&type=section&id=3%28b%29%20Segment%20Information) The Group's operating segments include automotive powertrain systems, auto parts and other industrial services, commercial vehicles, and other businesses, with analysis of revenue and adjusted EBIT for each segment Segment Revenue and Profit (thousand RMB) | Segment | 2025 H1 External Revenue | 2025 H1 Segment Profit (Adjusted EBIT) | 2024 H1 External Revenue | 2024 H1 Segment (Loss) Profit (Adjusted EBIT) | | :--- | :--- | :--- | :--- | :--- | | Automotive Powertrain Systems | 858,640 | 6,609 | 902,113 | (17,112) | | Auto Parts and Other Industrial Services | 2,839,699 | 77,874 | 2,698,094 | 75,883 | | Commercial Vehicles | 312,918 | 27,970 | 330,671 | 26,329 | | Others | 14,143 | 16,558 | 15,446 | 2,399 | | **Consolidated Total** | **4,025,400** | **129,011** | **3,946,324** | **87,499** | - The Automotive Powertrain Systems segment successfully turned profitable, shifting from a loss of **17,112 thousand RMB** in the same period of 2024 to a profit of **6,609 thousand RMB** in 2025[19](index=19&type=chunk)[20](index=20&type=chunk) - The Auto Parts and Other Industrial Services segment achieved growth in both revenue and profit, serving as a primary growth driver for the Group[19](index=19&type=chunk)[20](index=20&type=chunk) [3(c) Seasonality of Operations](index=10&type=section&id=3%28c%29%20Seasonality%20of%20Operations) The Group's major business segments experience higher product demand in the second half of the year, consistent with automotive industry seasonality, typically resulting in higher revenue and segment performance in H2 than H1 - For the twelve months ended June 30, 2025, the Group's three major reportable segments generated revenue of **7,997,074 thousand RMB** and segment profit of **225,188 thousand RMB**[21](index=21&type=chunk) [4. Other Income and Losses](index=11&type=section&id=4.%20Other%20Income%20and%20Losses) This section lists the components of other income and losses, including fair value changes of investment properties, exchange gains/losses, and losses on disposal of property, plant and equipment Other Income and Losses (thousand RMB) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Impairment Loss on Property, Plant and Equipment | – | (10,000) | | Fair Value Increase (Decrease) of Investment Properties | 2,415 | (13,047) | | Net Exchange Gain (Loss) | 3,685 | (104) | | Loss on Disposal of Property, Plant and Equipment | (248) | (961) | | Others | 918 | 1,509 | | **Total** | **6,770** | **(22,603)** | - Other income and losses shifted from a net loss of **22,603 thousand RMB** in the same period of 2024 to a net gain of **6,770 thousand RMB** in 2025, primarily benefiting from fair value increases in investment properties and exchange gains[22](index=22&type=chunk) [5. Profit Before Tax](index=11&type=section&id=5.%20Profit%20Before%20Tax) This section details the various expenses and income affecting profit before tax, including finance costs, staff costs, depreciation expense, cost of inventories, bank interest income, and government grants [5(a) Finance Costs](index=11&type=section&id=5%28a%29%20Finance%20Costs) Finance costs primarily include interest on bank borrowings, advances from discounted bills receivable, and lease liabilities, with a decrease in the current period compared to the prior period Finance Costs (thousand RMB) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest on Bank Borrowings | 37,590 | 32,257 | | Interest on Advances from Discounted Bills Receivable | 12,413 | 27,426 | | Interest on Lease Liabilities | 529 | 175 | | **Total** | **50,532** | **59,858** | - Total finance costs decreased by **15.6%** year-on-year, primarily due to a significant decrease in interest on advances from discounted bills receivable[23](index=23&type=chunk)[120](index=120&type=chunk) [5(b) Staff Costs](index=12&type=section&id=5%28b%29%20Staff%20Costs) Staff costs include salaries, wages and other benefits, and contributions to defined contribution retirement plans, with a decrease in the current period Staff Costs (thousand RMB) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Salaries, Wages and Other Benefits | 311,671 | 353,458 | | Contributions to Defined Contribution Retirement Plans | 41,887 | 44,682 | | Equity-settled Share-based Payment Credit | – | (9,276) | | **Total** | **353,558** | **388,864** | - Total staff costs decreased by **9.1%** year-on-year, mainly due to a reduction in salaries, wages and other benefits, and the presence of a share-based payment credit in 2024[24](index=24&type=chunk) [5(c) Other Items](index=12&type=section&id=5%28c%29%20Other%20Items) Other items include depreciation expense, net reversal of inventory write-downs, cost of inventories, bank interest income, and government grants, with a significant decrease in government grants Other Items (thousand RMB) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Depreciation Expense | 197,398 | 207,881 | | Net Reversal of Write-down of Inventories | (17,265) | (5,714) | | Cost of Inventories | 3,544,707 | 3,475,894 | | Bank Interest Income | (60,378) | (61,401) | | Government Grants | (21,611) | (63,228) | - Government grant income significantly decreased by **65.8%** year-on-year, from **63,228 thousand RMB** in the same period of 2024 to **21,611 thousand RMB**[24](index=24&type=chunk) [6. Income Tax Expense](index=13&type=section&id=6.%20Income%20Tax%20Expense) This section outlines the Group's income tax expense components, including current and deferred tax, and explains tax policies in Mainland China, Hong Kong, Indonesia, and the impact of Pillar Two income tax Income Tax Expense (thousand RMB) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Current Tax | 9,451 | 4,157 | | Deferred Tax | 2,323 | (2,885) | | **Total** | **11,774** | **1,272** | - Total income tax expense significantly increased from **1,272 thousand RMB** in the same period of 2024 to **11,774 thousand RMB** in 2025, mainly due to increased current tax and a shift from deferred tax income to expense[25](index=25&type=chunk) [Mainland China](index=13&type=section&id=Mainland%20China) Mainland China subsidiaries enjoy tax reductions, with some high-tech enterprises taxed at a preferential rate of 15%, others at 25%, and subject to 5% or 10% withholding tax - Liuzhou Wuling Liuji Power, Wuling Liuji Casting, and Hubei Zhuoda Auto Parts are recognized as high-tech enterprises, enjoying a **15%** preferential tax rate[26](index=26&type=chunk) - Liuzhou Zhuotong and Chongqing Zhuotong are eligible for tax reductions under China's Western Development policy, enjoying a **15%** preferential tax rate[26](index=26&type=chunk) [Hong Kong and Indonesia](index=13&type=section&id=Hong%20Kong%20and%20Indonesia) Hong Kong profits tax is calculated at 16.5%, and no tax provision is made for Indonesia as the subsidiary has no assessable profits - Hong Kong profits tax is calculated at **16.5%** of estimated assessable profits[28](index=28&type=chunk) [Pillar Two Income Tax](index=14&type=section&id=Pillar%20Two%20Income%20Tax) The Group falls within the scope of the OECD Pillar Two legislative model, has been exempted from recognizing and disclosing deferred tax assets and liabilities, and assesses its impact on income tax position as not significant - The Group's consolidated annual revenue exceeds **EUR 750 million**, falling within the scope of the OECD Pillar Two legislative model[30](index=30&type=chunk) - In accordance with HKAS 12 (Amendment), the Group has been exempted from recognizing and disclosing deferred tax assets and liabilities related to Pillar Two income tax[31](index=31&type=chunk) - As the main business is located in Mainland China, the impact of these rules on the Group's income tax position is not significant[31](index=31&type=chunk) [7. Earnings Per Share](index=14&type=section&id=7.%20Earnings%20Per%20Share) This section calculates basic and diluted earnings per share, showing a significant improvement in earnings per share for the current period [7(a) Basic Earnings Per Share](index=14&type=section&id=7%28a%29%20Basic%20Earnings%20Per%20Share) Basic earnings per share is calculated based on profit attributable to equity holders of the Company and the weighted average number of ordinary shares outstanding, showing significant growth in the current period Basic Earnings Per Share Calculation | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (thousand RMB) | 39,416 | 1,586 | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 3,298,161 | 3,298,161 | | **Basic Earnings Per Share** | **RMB 1.20 cents** | **RMB 0.05 cents** | [7(b) Diluted Earnings Per Share](index=14&type=section&id=7%28b%29%20Diluted%20Earnings%20Per%20Share) Diluted earnings per share is the same as basic earnings per share, as there were no dilutive potential ordinary shares in both the current and prior periods - There were no dilutive potential ordinary shares for any of the six months ended June 30, 2025 and 2024[33](index=33&type=chunk) [8. Investment Properties, Right-of-Use Assets, Lease Liabilities and Other Property, Plant and Equipment](index=15&type=section&id=8.%20Investment%20Properties%2C%20Right-of-Use%20Assets%2C%20Lease%20Liabilities%20and%20Other%20Property%2C%20Plant%20and%20Equipment) This section discloses changes in investment properties, right-of-use assets, lease liabilities, and property, plant and equipment, including transfers, fair value changes, new lease agreements, and acquisition costs [8(a) Investment Properties](index=15&type=section&id=8%28a%29%20Investment%20Properties) The carrying amount of investment properties slightly changed due to transfers, fair value increases, and exchange adjustments Changes in Investment Properties (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | At Beginning of Period | 437,974 | 436,351 | | Transfers (Net) | (5,779) | 7,285 | | Fair Value Increase Recognized in Other Comprehensive Income | 4,133 | 9,520 | | Fair Value Increase (Decrease) Recognized in Profit or Loss | 2,415 | (15,285) | | Exchange Adjustments | (73) | 103 | | **At End of Period** | **438,670** | **437,974** | [8(b) Right-of-Use Assets and Lease Liabilities](index=15&type=section&id=8%28b%29%20Right-of-Use%20Assets%20and%20Lease%20Liabilities) New lease agreements in the current period led to an increase in right-of-use assets and lease liabilities, while amounts leased from Guangxi Automobile Group decreased - An increase in right-of-use assets of **12,259 thousand RMB** and corresponding lease liabilities of **12,259 thousand RMB** were recognized in the current period[36](index=36&type=chunk) - Right-of-use assets leased from Guangxi Automobile Group decreased from **48,578 thousand RMB** as of December 31, 2024, to **18,846 thousand RMB** as of June 30, 2025[36](index=36&type=chunk) [8(c) Property, Plant and Equipment](index=15&type=section&id=8%28c%29%20Property%2C%20Plant%20and%20Equipment) Acquisition costs for property, plant and equipment significantly increased in the current period, while losses from disposals decreased Acquisition and Disposal of Property, Plant and Equipment (thousand RMB) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Acquisition Cost | 133,727 | 80,527 | | Net Book Value of Disposals | 16,061 | 12,622 | | Loss on Disposal | 248 | 961 | - Acquisition costs for property, plant and equipment increased by **66.1%** year-on-year, indicating increased capital expenditure[37](index=37&type=chunk) [9. Trade and Other Receivables](index=16&type=section&id=9.%20Trade%20and%20Other%20Receivables) This section details the composition of trade and other receivables, including amounts from major customers and third parties, providing aging analysis and credit loss provisions Trade and Other Receivables (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross Trade Receivables | 2,119,433 | 2,153,960 | | Less: Provision for Credit Losses | (108,502) | (96,185) | | Gross Other Receivables | 253,512 | 217,109 | | Less: Provision for Credit Losses | (13,679) | (19,445) | | Prepayments | 78,276 | 117,463 | | Recoverable VAT | 18,274 | 13,320 | | **Total** | **2,347,314** | **2,386,222** | - Total trade and other receivables slightly decreased, while provision for credit losses increased[38](index=38&type=chunk) - Receivables from SAIC-GM-Wuling increased from **838,324 thousand RMB** as of December 31, 2024, to **1,049,607 thousand RMB** as of June 30, 2025[38](index=38&type=chunk) [10. Bills Receivable and Bills Receivable at Fair Value Through Other Comprehensive Income](index=18&type=section&id=10.%20Bills%20Receivable%20and%20Bills%20Receivable%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) This section discloses the composition and aging analysis of bills receivable and bills receivable at fair value through other comprehensive income, primarily bank acceptance bills, with most maturing within 180 days Bills Receivable and Bills Receivable at Fair Value Through Other Comprehensive Income (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bills Receivable at Fair Value Through Other Comprehensive Income | 342,178 | 489,014 | | Bills Receivable (Discounted with Recourse) | 1,929,774 | 2,444,371 | | **Total** | **2,271,952** | **2,933,385** | - Total bills receivable decreased by **22.5%** year-on-year, mainly due to a reduction in discounted bills receivable with recourse[41](index=41&type=chunk) [11. Trade and Other Payables](index=19&type=section&id=11.%20Trade%20and%20Other%20Payables) This section details the composition of trade and other payables, including amounts due to related parties and third parties, as well as accrued R&D expenses and staff costs Trade and Other Payables (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade and Bills Payables | 4,607,663 | 4,529,142 | | VAT Payables and Other Tax Payables | 3,610 | 14,612 | | Accrued R&D Expenses | 203,474 | 164,000 | | Accrued Staff Costs | 57,187 | 89,379 | | Deposits Received from Suppliers | 43,010 | 49,439 | | Other Payables | 166,443 | 148,756 | | **Total** | **5,081,387** | **4,995,328** | - Total trade and other payables slightly increased, with a significant rise in accrued R&D expenses, while amounts due to related parties (e.g., SAIC-GM-Wuling) substantially decreased[43](index=43&type=chunk) [12. Warranty Provision](index=20&type=section&id=12.%20Warranty%20Provision) This section discloses changes in warranty provision, which is estimated based on sales volume and historical repair return levels, and is continuously reviewed and revised Changes in Warranty Provision (thousand RMB) | Item | Amount | | :--- | :--- | | At January 1, 2024 | 105,481 | | Provision Made During the Period (2024) | 43,704 | | Provision Utilized (2024) | (45,519) | | At December 31, 2024 and January 1, 2025 | 103,666 | | Provision Made During the Period (2025) | 15,333 | | Provision Utilized (2025) | (12,524) | | **At June 30, 2025** | **106,475** | - Total warranty provision slightly increased, reflecting more provisions made than utilized during the period[44](index=44&type=chunk) [13. Bank Borrowings / Advances from Discounted Bills Receivable with Recourse](index=21&type=section&id=13.%20Bank%20Borrowings%20%2F%20Advances%20from%20Discounted%20Bills%20Receivable%20with%20Recourse) This section details the total amount, collateral, and effective annual interest rate range for bank borrowings and advances from discounted bills receivable with recourse Bank Borrowings and Advances (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Bank Borrowings | 4,068,396 | 2,980,139 | | Of which: Secured | 654,479 | 165,564 | | Of which: Unsecured | 3,413,917 | 2,814,575 | | Advances from Discounted Bills Receivable with Recourse | 1,932,109 | 2,448,817 | | **Total** | **6,000,505** | **5,428,956** | - Total bank borrowings increased by **36.5%** year-on-year, with a significant increase in secured borrowings[45](index=45&type=chunk)[126](index=126&type=chunk) - Advances from discounted bills receivable with recourse decreased by **21.1%** year-on-year[45](index=45&type=chunk)[126](index=126&type=chunk) - Effective annual interest rate range: fixed-rate borrowings **0.6–3.00%**, floating-rate borrowings **0.6–3.35%**[45](index=45&type=chunk) [14. Share Capital, Reserves and Dividends](index=22&type=section&id=14.%20Share%20Capital%2C%20Reserves%20and%20Dividends) This section provides information on share capital, reserves, and dividends, including the number of shares issued and the decision not to declare an interim dividend for the current period [14(a) Share Capital](index=22&type=section&id=14%28a%29%20Share%20Capital) As of June 30, 2025, the Group's share capital remained unchanged, with 3,298,161,000 shares outstanding Share Capital (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | As Presented in the Condensed Consolidated Financial Statements at Period End | 11,782 | 11,782 | [14(b) Dividends](index=22&type=section&id=14%28b%29%20Dividends) The Board decided not to declare an interim dividend for the six months ended June 30, 2025, but a final dividend for the previous financial year was declared and paid after the interim period - The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025[47](index=47&type=chunk)[135](index=135&type=chunk) - A final dividend of **HK 0.5 cents per share**, totaling **HK 16,491 thousand** (approximately **15,228 thousand RMB**), was declared to the owners of the Company for the previous financial year and paid after the interim period[48](index=48&type=chunk) [Chairman's Statement](index=23&type=section&id=Chairman%27s%20Statement) The Chairman's Statement outlines the Group's operating strategy, key progress in H1 2025, and H2 work plan, emphasizing steady growth and efficiency improvement amidst a challenging market, focusing on industrial transformation and upgrading [Foreword](index=23&type=section&id=Foreword) Facing intensified market competition and economic downturn, the Group focused on 'stable growth, improved efficiency, and new beginnings' to transform its industries towards mid-to-high-end, digitalization, intelligence, and green development, achieving moderate revenue growth and significant gross profit improvement - The Group's total revenue was **4,025,400 thousand RMB**, an increase of **2%** compared to the same period in 2024[50](index=50&type=chunk) - Gross profit was **483,347 thousand RMB**, an increase of **13.5%**, with gross margin improving from **10.8%** to **12%**[50](index=50&type=chunk) - Net profit was **85,809 thousand RMB**, a substantial increase of **306%** year-on-year, and profit attributable to owners of the Company significantly improved to **39,416 thousand RMB**[51](index=51&type=chunk) [I. Key Work Progress in the First Half of 2025](index=24&type=section&id=I.%20Key%20Work%20Progress%20in%20the%20First%20Half%20of%202025) In the first half of the year, the Group focused on core businesses, implemented the 'Lingshi Project', made progress in market expansion, product innovation, and efficiency improvement across all segments, and actively pursued loss reduction and efficiency enhancement [(I) Concentrating Efforts, Focusing on Core Business, Ensuring High-Quality Implementation of 'Lingshi Project'](index=24&type=section&id=%28I%29%20Concentrating%20Efforts%2C%20Focusing%20on%20Core%20Business%2C%20Ensuring%20High-Quality%20Implementation%20of%20%27Lingshi%20Project%27) The Group made significant progress in auto parts, commercial vehicles, powertrain systems, and new energy vehicles in H1, ensuring high-quality implementation of the 'Lingshi Project' through market expansion, product innovation, and base construction [1. Auto Parts Business Seizes Opportunities for New Journey](index=24&type=section&id=1.%20Auto%20Parts%20Business%20Seizes%20Opportunities%20for%20New%20Journey) The auto parts business, guided by 'stabilizing existing, capturing incremental, expanding variables', secured 125 projects from 46 customers in H1, with revenue growing 5.2% year-on-year, expanding overseas markets and new technology R&D - In the first half, the auto parts business achieved revenue of **2,839,699 thousand RMB**, a year-on-year increase of **5.2%**[53](index=53&type=chunk) - Successfully expanded into new markets such as SAIC Passenger Vehicle, Zhengzhou Yutong, and Weichai New Energy, and secured projects in overseas markets including Vietnam, Indonesia, and Turkey[52](index=52&type=chunk) - A new manufacturing base was established in Rizhao, Shandong, enhancing industrial reach in East China; relying on the Shanghai Technology R&D Foresight Center, a product layout of 'traditional energy technology upgrade + new energy parts integrated development' was built[52](index=52&type=chunk) [2. Commercial Vehicle Business Advances Steadily for a New Chapter](index=25&type=section&id=2.%20Commercial%20Vehicle%20Business%20Advances%20Steadily%20for%20a%20New%20Chapter) The commercial vehicle business focused on four categories: civilian, official, off-road, and intelligent driving, achieving highlights in niche markets, with strong performance in off-road vehicles domestically and internationally, despite a slight decrease in total revenue - In the first half, the commercial vehicle business achieved revenue of **312,918 thousand RMB**, a slight decrease compared to the same period last year[55](index=55&type=chunk) - Off-road vehicles sold **1,093 units** domestically and **552 units** overseas, with the Shandong Nanshan International golf cart order becoming the largest domestic order[54](index=54&type=chunk) - The intelligent driving business achieved a breakthrough, securing a single bulk order for **hundreds of intelligent charging robots**[54](index=54&type=chunk) [3. Powertrain Business Unleashes Momentum for New Prospects](index=26&type=section&id=3.%20Powertrain%20Business%20Unleashes%20Momentum%20for%20New%20Prospects) The powertrain business, driven by 'engine technology upgrade and new energy integrated application', completed approximately 77,000 engines in H1, with casting sales increasing 24.5% year-on-year, making new strides in domestic and international markets - Casting business sales amounted to **257,138 thousand RMB** in the first half, a year-on-year increase of **24.5%**[56](index=56&type=chunk) - Stabilized the domestic market, with increased sales in new markets such as BAIC Foton, SAIC Maxus, and JAC, and promoted the H15TD-DHT hybrid project and H16B project[56](index=56&type=chunk) - Expanded international markets, securing a strategic project in Vietnam's overseas market[56](index=56&type=chunk) [4. New Energy Vehicle Business Consolidates Foundation with Synergistic Empowerment](index=26&type=section&id=4.%20New%20Energy%20Vehicle%20Business%20Consolidates%20Foundation%20with%20Synergistic%20Empowerment) The new energy vehicle business optimized technology and products, refined its product matrix, achieved a 9% year-on-year sales increase in H1, and actively expanded domestic and international market partners and sales channels - In the first half, new energy vehicle sales reached **8,640 units**, a year-on-year increase of **9%**[58](index=58&type=chunk) - Launched models such as the Golden Warehouse medium-range electric vehicle and Golden Card extended-range large-capacity hybrid 2.0 version, aiming to increase market segment penetration to **60%**[57](index=57&type=chunk) - Collaborated with leading enterprises like Lalamove, SF Express, and Meituan; overseas sales channels cumulatively reached **33**, covering **39 countries and regions**[57](index=57&type=chunk)[58](index=58&type=chunk) [(II) Reducing Losses and Increasing Efficiency, Refined Management, Deepening Reforms to Stimulate High-Quality Development Vitality](index=27&type=section&id=%28II%29%20Reducing%20Losses%20and%20Increasing%20Efficiency%2C%20Refined%20Management%2C%20Deepening%20Reforms%20to%20Stimulate%20High-Quality%20Development%20Vitality) The Group initiated loss reduction efforts and implemented refined management in H1, aiming for a 'dual decline' in the number and amount of loss-making enterprises, while enhancing efficiency through cost reduction, strict control of labor costs, and revitalization of idle assets - Continuously improved the 'one enterprise, one policy' strategy for turning losses into profits, striving to achieve a year-on-year 'dual decline' in the number and amount of loss-making subsidiaries within three years[59](index=59&type=chunk) - Continuously implemented 'cost reduction and efficiency improvement', set structural cost control targets, strictly controlled labor costs, and enhanced asset returns by reviewing asset status and revitalizing idle assets[60](index=60&type=chunk) [II. Work Plan and Key Measures for the Second Half of 2025](index=28&type=section&id=II.%20Work%20Plan%20and%20Key%20Measures%20for%20the%20Second%20Half%20of%202025) The Group plans to continue adjusting product structure, strengthening service and sales synergy, accelerating powertrain system transformation, seizing new energy vehicle market opportunities, and deepening loss management and refined management for high-quality development in H2 [(I) Continuously Adjusting Product Structure, Accelerating Transformation and Upgrading of Auto Parts Business](index=28&type=section&id=%28I%29%20Continuously%20Adjusting%20Product%20Structure%2C%20Accelerating%20Transformation%20and%20Upgrading%20of%20Auto%20Parts%20Business) In H2, the Group will leverage advantageous products, actively support new energy vehicle models, expand into mid-to-high-end customer markets, and accelerate the application and industrialization of new products/processes - Actively undertake more new energy vehicle model support to enhance product added value[61](index=61&type=chunk) - Vigorously expand into mid-to-high-end customer markets of China's top 10 brands, including Chery, Geely, BYD, and SAIC[61](index=61&type=chunk) - Accelerate the application and industrialization of new products/processes such as hydroforming, 3-in-1 electric drive axles, and magnesium-aluminum alloy die-casting[61](index=61&type=chunk) [(II) Strengthening Synergy in Automotive Services and Sales, Enhancing Brand Competitiveness](index=28&type=section&id=%28II%29%20Strengthening%20Synergy%20in%20Automotive%20Services%20and%20Sales%2C%20Enhancing%20Brand%20Competitiveness) The plan is to integrate service and sales resources, build a unified brand image, enhance customer loyalty and brand effect, and promote sales growth, using brand synergy as a breakthrough - Integrate service and sales resources to form a synergistic advantage and build a unified brand image[62](index=62&type=chunk) - Accelerate capital turnover efficiency, optimize resource allocation, and enhance customer loyalty and brand effect[62](index=62&type=chunk) [(III) Accelerating Transformation and Upgrading, Driving Powertrain Business to Enhance Core Competitiveness](index=28&type=section&id=%28III%29%20Accelerating%20Transformation%20and%20Upgrading%2C%20Driving%20Powertrain%20Business%20to%20Enhance%20Core%20Competitiveness) In H2, the focus will be on R&D of high-thermal efficiency engines and hybrid powertrain systems, establishing a collaborative development mechanism with vehicle projects, and actively expanding external markets to create new growth poles - Focus on R&D breakthroughs for high-thermal efficiency engines and hybrid powertrain systems, accelerating the industrialization of technological achievements[63](index=63&type=chunk) - Identify high-quality potential customers through precise market research and customer profiling, creating new growth poles for the powertrain business[63](index=63&type=chunk) [(IV) Seizing Domestic and International Market Opportunities, Expanding New Energy Vehicle Business](index=28&type=section&id=%28IV%29%20Seizing%20Domestic%20and%20International%20Market%20Opportunities%2C%20Expanding%20New%20Energy%20Vehicle%20Business) The plan is to continuously improve the product matrix, strengthen marketing, promote new products like medium-range Golden Mini-Truck, Golden Truck, and Golden Warehouse, expand into overseas markets such as Japan, South Korea, and Italy, and deepen cooperation with leading enterprises - Significantly increase promotion of new products such as the medium-range Golden Mini-Truck, Golden Truck, Golden Warehouse, and double-cab mini-trucks to enhance market share[64](index=64&type=chunk) - Accelerate the launch and sales of G050 platform cost-reduced models and Golden Warehouse right-hand drive models, expanding into high-potential overseas markets such as Japan, South Korea, and Italy[65](index=65&type=chunk) - Actively expand cooperation with major clients, partnering with leading enterprises like Lalamove, Didi, SF Express, and Meituan[65](index=65&type=chunk) [(V) Strictly Implementing 'One Enterprise, One Policy', Further Strengthening Loss Management](index=29&type=section&id=%28V%29%20Strictly%20Implementing%20%27One%20Enterprise%2C%20One%20Policy%27%2C%20Further%20Strengthening%20Loss%20Management) In H2, the Group will continue to intensify loss management, reduce costs and increase efficiency for new energy strategic emerging enterprises through technical optimization and business control, and strictly control expenses and initiate liquidation for enterprises unable to turn profitable - Strive to achieve the goal set by the Autonomous Region SASAC: 'by 2025, achieve a year-on-year dual decline in the number and amount of loss-making subsidiaries'[66](index=66&type=chunk) - For new energy strategic emerging enterprises, implement a dual approach of technical optimization and business control to reduce production and procurement costs[66](index=66&type=chunk) [(VI) Deepening Internal Refined Management, Improving Asset Efficiency](index=29&type=section&id=%28VI%29%20Deepening%20Internal%20Refined%20Management%2C%20Improving%20Asset%20Efficiency) The Group will continue to advance the 'Three Reductions' initiative, strengthen 'Two Funds' control, specifically promote the cleanup of non-performing inventory and overdue receivables, and revitalize idle assets to enhance asset efficiency - Continuously advance the 'Three Reductions' initiative, strengthen 'Two Funds' control, and promote the cleanup of non-performing inventory, overdue receivables, and revitalization of idle assets[67](index=67&type=chunk) [Management Discussion and Analysis](index=30&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the Group's major business segments, joint ventures, and associates' operating performance, along with a detailed review of financial position, liquidity, capital structure, seasonality, asset pledges, exchange rate risks, and contingent liabilities [Operating Review — Major Business Segments](index=30&type=section&id=Operating%20Review%20%E2%80%94%20Major%20Business%20Segments) This section reviews the operating performance of the Automotive Powertrain Systems, Auto Parts and Other Industrial Services, and Commercial Vehicles segments in H1 2025, including revenue, business volume, market challenges, and response strategies [Automotive Powertrain Systems](index=30&type=section&id=Automotive%20Powertrain%20Systems) The Automotive Powertrain Systems segment's total revenue decreased by 4.8% year-on-year, but it successfully turned profitable with an operating profit of 6,609 thousand RMB, driven by strong casting product sales and cost control, actively transitioning to new energy powertrains Key Data for Automotive Powertrain Systems Segment (thousand RMB) | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Total Revenue (External Sales) | 858,640 | 902,113 | | Operating Profit (Loss) | 6,609 | (17,112) | | Casting Product Sales Revenue | 257,138 | (Not provided) | | Sales to Core Customer SAIC-GM-Wuling | 426,588 | (Approx.) 387,807 | | Sales to Other Customers | 432,052 | (Approx.) 514,306 | - Engine sales volume was approximately **77,000 units**, a year-on-year decrease of approximately **8.3%**, influenced by the market shift from fuel vehicles to new energy vehicles[69](index=69&type=chunk) - Casting product sales revenue increased by approximately **24.5%** year-on-year, mitigating unfavorable market factors[69](index=69&type=chunk) - Completed the product layout of 'traditional powertrain technology upgrade + new energy powertrain integrated development' and launched HEV hybrid power solutions[73](index=73&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [Auto Parts and Other Industrial Services](index=33&type=section&id=Auto%20Parts%20and%20Other%20Industrial%20Services) The Auto Parts and Other Industrial Services segment saw a moderate 5.2% increase in total revenue and a 2.6% growth in operating profit, driven by core customer business rebound, new customer contributions, and cost reduction initiatives, actively expanding overseas markets and new technology applications Key Data for Auto Parts and Other Industrial Services Segment (thousand RMB) | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Total Revenue (External Sales) | 2,839,699 | 2,698,094 | | Operating Profit | 77,874 | 75,883 | | Sales to Core Customer SAIC-GM-Wuling | 1,606,971 | 1,486,464 | | Sales to Expanded Accounts | 1,159,301 | (Not provided) | | Sales to Wuling New Energy | 73,427 | (Not provided) | - Sales to core customer SAIC-GM-Wuling increased by **8.1%**, and sales to expanded accounts grew to **1,159,301 thousand RMB**, accounting for approximately **40.8%** of total revenue[83](index=83&type=chunk)[84](index=84&type=chunk) - New production bases were established in Jingmen, Hubei, and Rizhao, Shandong, enhancing industrial reach and market competitiveness[85](index=85&type=chunk) - Cumulative production and sales of micro electric drive axles exceeded **2,000,000 units**, and hydroforming technology is widely applied in new energy vehicles and passenger cars[87](index=87&type=chunk)[89](index=89&type=chunk) [Commercial Vehicles](index=37&type=section&id=Commercial%20Vehicles) The Commercial Vehicles segment's total revenue decreased by 5.4% year-on-year, but operating profit moderately increased by 6.2%, benefiting from stable business volume, reduced raw material costs, and cost control measures, actively developing low-speed intelligent driving products Key Data for Commercial Vehicles Segment (thousand RMB) | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Total Revenue (External Sales) | 312,918 | 330,671 | | Operating Profit | 27,970 | 26,329 | | Vehicle Sales Volume (units) | 3,870 | 3,650 | - Vehicle sales volume increased by **6%** year-on-year, with approximately **2,170 units** of modified vehicles and **1,700 units** of sightseeing vehicles sold[95](index=95&type=chunk) - Actively developed low-speed intelligent driving products, independently developing core chassis components such as front and rear axles, EPB, EHB, and the Lingyu intelligent driving system[98](index=98&type=chunk) - Established joint venture Wuling New Energy with Guangxi Automobile, focusing on R&D, manufacturing, and sales of new energy vehicles, which helps streamline this segment's existing operations[101](index=101&type=chunk)[102](index=102&type=chunk) [Performance of Joint Ventures and Associates](index=41&type=section&id=Performance%20of%20Joint%20Ventures%20and%20Associates) This section evaluates the operating performance and financial contributions of the Group's major joint ventures and associates (including Wuling New Energy, Guangxi Weixiang, Faurecia Seating, Faurecia Interiors, and Faurecia Exhaust) in H1 2025 [Wuling New Energy](index=41&type=section&id=Wuling%20New%20Energy) Wuling New Energy's total revenue was 565,487 thousand RMB, incurring a net operating loss of 211,348 thousand RMB due to initial operational phase and significant R&D expenses, but new energy vehicle sales moderately increased by 9.4% year-on-year Key Data for Wuling New Energy (thousand RMB) | Metric | 2025 H1 | | :--- | :--- | | Total Revenue | 565,487 | | Net Operating Loss | (211,348) | | Loss Attributable to the Group | (54,316) | | New Energy Vehicle Sales Volume (units) | 8,640 | - Sales growth was primarily attributed to new models launched in the domestic market, including the 'Lingshi Golden Warehouse' series and 'Lingshi Golden Mini-Truck' series[106](index=106&type=chunk) - Continuously expanding overseas markets, building on existing market foundations, and further developing markets in Southeast Asia, South America, and other regions[108](index=108&type=chunk) [Other Significant Joint Ventures and Associates](index=42&type=section&id=Other%20Significant%20Joint%20Ventures%20and%20Associates) This section outlines the operating performance of other significant joint ventures and associates, including Guangxi Weixiang, Faurecia Seating, Faurecia Interiors, and Faurecia Exhaust, showing continued profitable growth for Guangxi Weixiang and Faurecia Interiors, and narrowed losses or turnarounds for Faurecia Seating and Exhaust [Guangxi Weixiang Machinery Co., Ltd.](index=42&type=section&id=Guangxi%20Weixiang%20Machinery%20Co.%2C%20Ltd.) Guangxi Weixiang's total revenue increased by 42% year-on-year, and net operating profit increased by 60%, maintaining its profitability Key Data for Guangxi Weixiang (thousand RMB) | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Total Revenue | 391,428 | (Approx.) 275,653 | | Net Operating Profit | 7,606 | 4,748 | | Profit Attributable to the Group | 3,803 | (Approx.) 2,374 | [Faurecia (Liuzhou) Automotive Seating Co., Ltd.](index=42&type=section&id=Faurecia%20%28Liuzhou%29%20Automotive%20Seating%20Co.%2C%20Ltd.) Faurecia Seating's total revenue increased by 44% year-on-year, but it still recorded a net operating loss due to intense competition, though the loss significantly narrowed compared to the prior period Key Data for Faurecia Seating (thousand RMB) | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Total Revenue | 265,835 | (Approx.) 184,608 | | Net Operating Loss | (7,356) | (30,406) | | Loss Attributable to the Group | (3,678) | (15,203) | - Net operating loss significantly narrowed, primarily due to the impact of a fire incident in the same period last year[110](index=110&type=chunk) [Faurecia (Liuzhou) Automotive Interior Systems Co., Ltd.](index=43&type=section&id=Faurecia%20%28Liuzhou%29%20Automotive%20Interior%20Systems%20Co.%2C%20Ltd.) Faurecia Interiors' total revenue increased by 30% year-on-year, and net operating profit further increased, maintaining business momentum and profitability Key Data for Faurecia Interiors (thousand RMB) | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Total Revenue | 191,860 | (Approx.) 147,585 | | Net Operating Profit | 21,509 | 15,848 | | Profit Attributable to the Group | 10,755 | (Approx.) 7,924 | [Faurecia (Liuzhou) Exhaust Control Technology Co., Ltd.](index=43&type=section&id=Faurecia%20%28Liuzhou%29%20Exhaust%20Control%20Technology%20Co.%2C%20Ltd.) Faurecia Exhaust's total revenue remained stable, but it successfully turned profitable with a net operating profit of 2,406 thousand RMB due to improved gross margin Key Data for Faurecia Exhaust (thousand RMB) | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Total Revenue | 137,016 | 137,016 | | Net Operating Profit (Loss) | 2,406 | (5,880) | | Profit Attributable to the Group | 1,203 | (2,940) | [Financial Review](index=43&type=section&id=Financial%20Review) This section provides a detailed financial review of the condensed consolidated statement of profit or loss and other comprehensive income and the condensed consolidated statement of financial position, analyzing the main reasons for changes in revenue, gross profit, net profit, asset-liability structure, and various expenses [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=43&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's total revenue moderately grew by 2%, gross profit increased by 13.5% to 483,347 thousand RMB, and gross margin improved to 12%. Net profit surged by 306% to 85,809 thousand RMB, mainly due to core business improvements and reduced losses from associates - Total revenue was **4,025,400 thousand RMB**, an increase of **2%** compared to the same period last year, primarily benefiting from business growth in the Auto Parts and Other Industrial Services segment[113](index=113&type=chunk) - Gross profit was **483,347 thousand RMB**, an increase of **13.5%**, with gross margin improving from **10.8%** to **12%**[114](index=114&type=chunk) - Net profit was **85,809 thousand RMB**, a substantial increase of **306%** compared to the same period last year, and profit attributable to owners of the Company was **39,416 thousand RMB**[115](index=115&type=chunk) - R&D expenses were **184,154 thousand RMB**, a significant increase of **42.6%**, mainly for new product and business development projects in the Auto Parts and Other Industrial Services segment[119](index=119&type=chunk) - Finance costs were **50,532 thousand RMB**, a decrease of **15.6%**, due to lower borrowing interest rates during the period[120](index=120&type=chunk) [Condensed Consolidated Statement of Financial Position](index=46&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and total liabilities were 14,447,828 thousand RMB and 11,362,586 thousand RMB, respectively. Net current assets significantly improved to 557,144 thousand RMB, partly due to an increase in long-term bank borrowings - Total assets were **14,447,828 thousand RMB**, and total liabilities were **11,362,586 thousand RMB**[121](index=121&type=chunk) - Net current assets were **557,144 thousand RMB**, a further improvement compared to **74,022 thousand RMB** as of December 31, 2024[123](index=123&type=chunk) - Non-current assets were **4,029,991 thousand RMB**, and current assets were **10,417,837 thousand RMB**[121](index=121&type=chunk)[122](index=122&type=chunk) - Receivables from related company SAIC-GM-Wuling were **1,049,607 thousand RMB**[122](index=122&type=chunk) [Liquidity and Capital Structure](index=47&type=section&id=Liquidity%20and%20Capital%20Structure) The Group finances through bank borrowings and discounted bills receivable, with total bank borrowings increasing and advances from discounted bills receivable with recourse decreasing. The Group maintains a high bank cash balance and is committed to financial stability - Total bank borrowings were **4,068,396 thousand RMB**, an increase of **36.5%** compared to December 31, 2024[126](index=126&type=chunk) - Advances from discounted bills receivable with recourse decreased by **21.1%** to **1,932,109 thousand RMB**[126](index=126&type=chunk) - Bank cash balances (together with pledged bank deposits) were **5,195,075 thousand RMB**, a slight increase[126](index=126&type=chunk) - Total equity attributable to shareholders of the Company was **1,992,026 thousand RMB**, with net asset value per share of approximately **RMB 60.4 cents**[127](index=127&type=chunk) [Seasonality or Cyclicality of Interim Operations](index=48&type=section&id=Seasonality%20or%20Cyclicality%20of%20Interim%20Operations) The Group's major business segments experience higher product demand in the second half of the year, consistent with automotive industry seasonality, typically resulting in higher revenue and segment performance in H2 than H1 - Product demand is higher in the second half of the year, primarily stimulated by exhibitions and promotional activities held in September and October[129](index=129&type=chunk) - For the twelve months ended June 30, 2025, the Group's three major business segments generated revenue of **7,997,074 thousand RMB**, a decrease compared to the same period last year, mainly due to unfavorable market conditions and the repositioning strategy of the commercial vehicle segment[130](index=130&type=chunk) [Pledge of Assets](index=49&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, bank deposits of 636,042 thousand RMB and discounted bills receivable with recourse of 1,929,774 thousand RMB held by the Group were pledged to banks as collateral for financing - Pledged bank deposits of **636,042 thousand RMB**[131](index=131&type=chunk) - Pledged discounted bills receivable with recourse not yet due of **1,929,774 thousand RMB**[131](index=131&type=chunk) [Exchange Rate Fluctuation Risk](index=49&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group holds a small amount of HKD, USD, and EUR denominated assets; relative to the scale of RMB denominated assets, exchange rate fluctuation risk is considered reasonable and will continue to be monitored - Holds bank deposits and trade receivables denominated in HKD, USD, and EUR, totaling **14,965 thousand RMB** equivalent[132](index=132&type=chunk) [Commitments](index=49&type=section&id=Commitments) As of June 30, 2025, the Group had contracted but unprovided commitments of 95,027 thousand RMB for the acquisition of property, plant and equipment - Contracted but unprovided commitments for the acquisition of property, plant and equipment amounted to **95,027 thousand RMB**[133](index=133&type=chunk) [Contingent Liabilities](index=49&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities[134](index=134&type=chunk) [Interim Dividend](index=49&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the declaration of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025[135](index=135&type=chunk) [Purchase, Redemption and Sale of the Company's Listed Securities](index=49&type=section&id=Purchase%2C%20Redemption%20and%20Sale%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[136](index=136&type=chunk) [Corporate Governance](index=50&type=section&id=Corporate%20Governance) The Company confirms full compliance with all code provisions of the Corporate Governance Code set out in Appendix 14 of the HKEX Listing Rules for the six months ended June 30, 2025 - The Company has fully complied with all code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules[137](index=137&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=50&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted its own code of conduct, whose terms are no less exacting than the Model Code, and all Directors confirmed compliance with it during the period - The Company made specific enquiries to all Directors, who confirmed their compliance with both their own code and the Model Code during the period[138](index=138&type=chunk) [Audit Committee](index=50&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors and one non-executive director, is responsible for reviewing and monitoring the Group's financial reporting, internal control, and risk management systems, and has reviewed the interim financial information for the period - The Audit Committee comprises Mr. Ye Xiang (Chairman), Mr. Wang Yuben, Mr. Xu Jinli (Independent Non-executive Directors), and Mr. Li Zheng (Non-executive Director)[139](index=139&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025[140](index=140&type=chunk) [Change of Chief Executive Officer](index=51&type=section&id=Change%20of%20Chief%20Executive%20Officer) Mr. Song Wei resigned as CEO due to a parent company management reassignment plan, with Mr. Yang Jie succeeding him, effective February 18, 2025 - Mr. Song Wei resigned as the Company's Chief Executive Officer due to a parent company management reassignment plan, effective **February 18, 2025**[141](index=141&type=chunk) - Mr. Yang Jie succeeded as the current Chief Executive Officer[141](index=141&type=chunk) [Interim Report](index=51&type=section&id=Interim%20Report) The interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the HKEX and Company websites in due course - The interim report will be dispatched to the Company's shareholders in due course and published on the HKEX website (www.hkexnews.hk) and the Company's website (www.wuling.com.hk)[142](index=142&type=chunk) [Board of Directors](index=51&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises Mr. Yuan Zhijun (Chairman), Mr. Wei Mingfeng, and Ms. Zhu Fengyan as Executive Directors; Mr. Li Zheng as Non-executive Director; and Mr. Ye Xiang, Mr. Wang Yuben, and Mr. Xu Jinli as Independent Non-executive Directors - The Board of Directors comprises three executive directors, one non-executive director, and three independent non-executive directors[143](index=143&type=chunk)

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Provides an overview of the company's financial performance and position, highlighting key changes in profitability and balance sheet metrics [Operating Results](index=1&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, the company significantly narrowed its operating and period losses, with a reduction in loss per share Operating Results | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Operating Loss | (92,135) | (154,330) | | Loss for the Period | (93,672) | (155,490) | | Loss per Share – Basic and Diluted (RMB) | (0.25) | (0.42) | [Financial Position](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) As of June 30, 2025, the company's total assets and total equity substantially increased, while current liabilities decreased, indicating an improved financial structure Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 37,268 | 28,063 | | Current Assets | 346,079 | 190,294 | | Total Assets | 383,347 | 218,357 | | Non-current Liabilities | 10,363 | 3,221 | | Current Liabilities | 112,535 | 157,666 | | Total Liabilities | 122,898 | 160,887 | | Total Equity | 260,449 | 57,470 | [Business Highlights](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E6%91%98%E8%A6%81) The company achieved significant progress in technology innovation, product pipeline, and business operations in the US and China, building a pipeline of six drug candidates for chronic diseases, with a core focus on metabolic disorders [Core Strategy and Pipeline](index=2&type=section&id=%E6%A0%B8%E5%BF%83%E6%88%B0%E7%95%A5%E8%88%87%E7%AE%A1%E7%B7%9A) The company has made significant strides in technology innovation, product pipeline, and business operations in the US and China, establishing a pipeline of six drug candidates for chronic diseases, with a core focus on metabolic disorders - The company has successfully built a pipeline matrix covering **6 drug candidates** for chronic diseases[6](index=6&type=chunk) - The core strategy focuses on treating metabolic diseases and their complications, with multiple candidate drugs possessing both "First-in-Class" (FIC) and "Best-in-Class" (BIC) potential[6](index=6&type=chunk) [Core Product PB-119 Progress](index=2&type=section&id=%E6%A0%B8%E5%BF%83%E7%94%A2%E5%93%81PB-119%E9%80%B2%E5%B1%95) Core product PB-119 (Vepanapeptide Injection) entered the NMPA supplementary review stage in May 2025, with market approval expected in Q3 2025, and commercial production preparations and differentiated market strategies are complete - PB-119 officially entered the National Medical Products Administration (NMPA) supplementary review stage on May 22, 2025[6](index=6&type=chunk) - New Drug Application (NDA) approval is expected in **Q3 2025**, with commercial production preparations already completed[7](index=7&type=chunk) - The market strategy will emphasize its differentiated value of "high safety, long-acting glucose control advantages, and potential cardiovascular benefits," while actively implementing market access, building full-channel coverage, exploring innovative payment models, and strengthening academic promotion[8](index=8&type=chunk)[10](index=10&type=chunk) [Other Pipeline Progress](index=3&type=section&id=%E5%85%B6%E4%BB%96%E5%9C%A8%E7%A0%94%E7%AE%A1%E7%B7%9A%E9%80%B2%E5%B1%95) All clinical-stage projects are progressing as planned, and preclinical projects have met their development goals, laying the foundation for subsequent IND applications - Clinical research stage projects are strictly adhering to R&D plans and quality standards, systematically advancing clinical trial enrollment, data collection, and analysis[9](index=9&type=chunk) - Preclinical research stage projects have achieved their R&D milestones as planned, laying the foundation for subsequent Investigational New Drug (IND) applications[9](index=9&type=chunk) [I. Overview](index=4&type=section&id=I.%20%E6%A6%82%E8%A7%88) Provides a high-level introduction to the company's mission, strategic focus, and key product development areas [Company Profile and Strategic Focus](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B%E8%88%87%E6%88%B0%E7%95%A5%E9%87%8D%E9%BB%9E) PegBio, established in 2008, specializes in the independent R&D of innovative therapies (peptides and small molecules) for chronic diseases, focusing on metabolic disorders with one core product and five candidate products - The company was established in **2008**, focusing on independent research and development of innovative therapies for chronic diseases, primarily peptides and small molecules, with a key focus on metabolic disorders[11](index=11&type=chunk) - It has independently developed one core product and five other candidate products to address market opportunities in Type 2 Diabetes Mellitus (T2DM), obesity, Non-alcoholic Steatohepatitis (NASH), Opioid-Induced Constipation (OIC), and Congenital Hyperinsulinism (CHI)[11](index=11&type=chunk) [II. Business Review](index=4&type=section&id=II.%20%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Reviews the company's product pipeline, R&D efforts, manufacturing capabilities, commercialization strategies, and intellectual property [Products and Pipeline](index=4&type=section&id=%E7%94%A2%E5%93%81%E5%8F%8A%E7%94%A2%E5%93%81%E7%AE%A1%E7%B7%9A) The company focuses on differentiated therapies for chronic and metabolic diseases, having developed a diverse pipeline of six candidate products by June 30, 2025, with three in clinical trials and one with IND approval, utilizing PEG technology - As of June 30, 2025, the company has developed a diverse pipeline consisting of **six candidate products**, with **three** currently in clinical trials and **one** having received IND approval[12](index=12&type=chunk) - The company applies Polyethylene Glycol (PEG) technology to its candidate products to optimize their physicochemical properties, achieving long-acting efficacy and selective targeting[12](index=12&type=chunk) Candidate Drug Development Status (as of June 30, 2025) | Candidate Drug | MoA/Target | Indication | Current Status/Future Milestones | | :--- | :--- | :--- | :--- | | PB-119 | Long-acting GLP-1 Receptor Agonist | T2DM (monotherapy/combination therapy), Overweight or Obesity | Expected to be approved for launch in China as early as Q3 2025; Ib/IIa clinical trial for obesity is being initiated in China; Phase III clinical trial for T2DM cardiovascular benefits to be initiated in China in 2026 | | PB-718 | Long-acting GLP-1/GCG Dual Receptor Agonist | Overweight or Obesity, NASH | Subject follow-up for Ib/IIa clinical trial completed in China; Phase IIb clinical trial expected to start in 2025; Phase I clinical trial in the US completed in May 2022 (NASH) | | PB-1902 | Opioid Receptor Antagonist | OIC | Phase I clinical trial completed in China in January 2022; Phase II clinical trial expected to start in China in 2025 | | PB-722 | GCG Receptor Agonist | Congenital Hyperinsulinism | IND approved by NMPA in May 2023; Phase I clinical trial to be initiated in China in 2026 | | PB-2301 | GLP-1/GIP Dual Receptor Agonist | T2DM/Overweight or Obesity/NASH | IND application expected to be submitted in China in 2026 | | PB-2309 | GLP-1/GIP/GCG Triple Receptor Agonist | T2DM/Overweight or Obesity/NASH | IND application expected to be submitted in China in 2025 | [Core Product PB-119](index=5&type=section&id=%E6%A0%B8%E5%BF%83%E7%94%A2%E5%93%81PB-119) PB-119, an independently developed long-acting GLP-1 receptor agonist for T2DM and obesity, offers once-weekly dosing via PEGylation, good safety, and no titration, with NDA accepted in September 2023 and expected approval in 2025 - PB-119 is an independently developed long-acting GLP-1 receptor agonist, primarily for first-line treatment of T2DM and obesity, enabling once-weekly dosing through PEGylation[14](index=14&type=chunk) - PB-119 features a single dosage form, requires no dose titration, and demonstrates good safety with rapid, significant, and sustained efficacy[14](index=14&type=chunk) - The NMPA accepted the NDA for PB-119 in China for T2DM treatment in **September 2023**, with approval and commercial launch anticipated in **2025**[15](index=15&type=chunk) - The company plans to initiate Phase III clinical trials in **2025** for PB-119 in combination therapy with basal insulin and SGLT-2 inhibitors, as well as a Phase III clinical trial to evaluate cardiovascular outcomes in T2DM patients[16](index=16&type=chunk) - Recruitment for the Ib/IIa clinical trial of PB-119 for obesity treatment was completed in **June 2024**[16](index=16&type=chunk) [PB-718, a Long-Acting GLP-1/GCG Dual Receptor Agonist](index=7&type=section&id=PB-718%EF%BC%8C%E4%B8%80%E6%AC%BE%E9%95%B7%E6%95%88GLP-1%2FGCG%E9%9B%99%E5%8F%97%E9%AB%94%E6%BF%80%E5%8B%95%E5%8A%91) PB-718, a novel long-acting GLP-1/GCG dual receptor agonist for obesity and NASH, provides synergistic effects with significant weight loss and appetite reduction, and once-weekly dosing via PEGylation, having completed US Phase I and China Ib/IIa follow-up - PB-718 is a novel long-acting GLP-1/Glucagon (GCG) dual receptor agonist, primarily for the treatment of obesity and NASH[21](index=21&type=chunk) - This drug produces synergistic effects by dually activating GLP-1 and GCG receptors, characterized by significant weight loss, reduced appetite, and decreased hepatic lipid accumulation[21](index=21&type=chunk) - Utilizing PEGylation technology to extend its half-life, it allows for once-weekly dosing, with Phase I clinical trials completed in the US and subject follow-up for Ib/IIa clinical trials completed in China[22](index=22&type=chunk) [PB-1902, a Potential First-in-Class Oral Selective Opioid Receptor Antagonist for OIC](index=7&type=section&id=PB-1902%EF%BC%8C%E4%B8%80%E6%AC%BE%E6%BD%9B%E5%9C%A8%E7%9A%84%E7%94%A8%E6%96%BC%E6%B2%BB%E7%99%82OIC%E7%9A%84%E5%90%8C%E9%A1%9E%E9%A6%96%E5%89%B5%E5%8F%A3%E6%9C%8D%E5%9E%8B%E9%81%B8%E6%93%87%E6%80%A7%E9%98%BF%E7%89%87%E5%8F%97%E9%AB%94%E6%BF%80%E5%8B%95%E5%8A%91) PB-1902 is a potential first-in-class oral selective opioid receptor antagonist in China for opioid-induced constipation (OIC), designed to relieve constipation without compromising analgesia, having completed two Phase I studies and planning Phase II in China for 2025 - PB-1902 is a potential first-in-class oral selective opioid receptor antagonist in China for the treatment of Opioid-Induced Constipation (OIC)[24](index=24&type=chunk) - The drug aims to effectively alleviate bowel dysfunction without diminishing the central analgesic effects of opioid medications[24](index=24&type=chunk) - Two Phase I clinical studies have been completed, demonstrating good safety, tolerability, pharmacokinetic (PK), and pharmacodynamic (PD) characteristics, with a Phase II clinical trial planned to commence in China in **2025**[24](index=24&type=chunk) [PB-722, a GCG Receptor Agonist in Development for Congenital Hyperinsulinism](index=8&type=section&id=PB-722%EF%BC%8C%E4%B8%80%E6%AC%BE%E6%AD%A3%E5%9C%A8%E9%96%8B%E7%99%BC%E7%9A%84%E7%94%A8%E6%96%BC%E6%B2%BB%E7%99%82%E5%85%88%E5%A4%A9%E6%80%A7%E9%AB%98%E8%83%B0%E5%B3%B6%E7%B4%A0%E8%A1%80%E7%97%87%E7%9A%84GCG%E5%8F%97%E9%AB%94%E6%BF%80%E5%8B%95%E5%8A%91) PB-722, a GCG receptor agonist for congenital hyperinsulinism, received FDA Orphan Drug Designation in May 2021 and NMPA IND approval in May 2023, becoming the first candidate for this indication in China, with Phase I planned for 2026 and Phase II for 2027 - PB-722, a GCG receptor agonist for the treatment of congenital hyperinsulinism, received FDA Orphan Drug Designation in **May 2021**[25](index=25&type=chunk) - In **May 2023**, the NMPA approved its IND application, making it the **first candidate drug** approved in China for the treatment of congenital hyperinsulinism[25](index=25&type=chunk) - Phase I clinical trials are planned to commence in **2026**, with Phase II clinical trials anticipated to start in **2027**[25](index=25&type=chunk) [PB-2301, a GLP-1/GIP Dual Receptor Agonist for T2DM, NASH, and Obesity](index=8&type=section&id=PB-2301%EF%BC%8C%E4%B8%80%E6%AC%BEGLP-1%2FGIP%E9%9B%99%E5%8F%97%E9%AB%94%E6%BF%80%E5%8B%95%E5%8A%91%EF%BC%8C%E7%94%A8%E6%96%BC%E6%B2%BB%E7%99%療T2DM%E3%80%81NASH%E5%92%8C%E8%82%A5%E8%83%96%E7%97%87) PB-2301 is a GLP-1/GIP dual receptor agonist for T2DM, NASH, and obesity, currently undergoing preclinical studies with an IND application to NMPA expected in 2026 - PB-2301 is a GLP-1/Glucose-dependent Insulinotropic Polypeptide (GIP) dual receptor agonist for the treatment of T2DM, NASH, and obesity[26](index=26&type=chunk) - Multiple preclinical studies are currently underway, with an IND application to the NMPA planned for **2026**[26](index=26&type=chunk) [PB-2309, a GLP-1/GIP/GCG Triple Receptor Agonist for T2DM, NASH, and Obesity](index=9&type=section&id=PB-2309%EF%BC%8C%E4%B8%80%E6%AC%BEGLP-1%2FGIP%2FGCG%E4%B8%89%E5%8F%97%E9%AB%94%E6%BF%80%E5%8B%95%E5%8A%91%EF%BC%8C%E7%94%A8%E6%96BC%E6%B2%BB%E7%99%療T2DM%E3%80%81NASH%E5%92%8C%E8%82%A5%E8%83%96%E7%97%87) PB-2309 is a GLP-1/GIP/GCG triple receptor agonist for T2DM, NASH, and obesity, currently undergoing preclinical studies with an IND application to NMPA expected in 2025 - PB-2309 is a GLP-1/GIP/GCG triple receptor agonist for the treatment of T2DM, NASH, and obesity[28](index=28&type=chunk) - Multiple preclinical studies are currently underway, with an IND application to the NMPA planned for **2025**[28](index=28&type=chunk) [Research and Development](index=9&type=section&id=%E7%A0%94%E7%A9%B6%E5%8F%8A%E9%96%8B%E7%99%BC) The company possesses an experienced R&D team focused on chronic and metabolic diseases, with independent drug discovery capabilities and support for drug discovery, clinical R&D, and regulatory affairs, with R&D expenses of RMB 26.3 million for the six months ended June 30, 2025 - The company's R&D team possesses extensive expertise and development experience in chronic and metabolic diseases, with independent drug discovery capabilities including identifying medical needs, compound design optimization, efficacy evaluation, and formulation development[29](index=29&type=chunk) R&D Expenses | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | | :--- | :--- | :--- | | R&D Expenses | 26.3 | 64.0 | [Chemistry, Manufacturing, and Controls ("CMC")](index=10&type=section&id=%E5%8C%96%E5%AD%B8%E3%80%81%E8%A3%BD%E9%80%A0%E5%8F%8A%E6%8E%A7%E5%88%B6%EF%BC%88%E3%80%8CCMC%E3%80%8D%EF%BC%89) The company's experienced CMC team is responsible for process development, production, and quality management during drug development, relying on CDMO partners for preclinical and clinical production due to the absence of commercial-scale manufacturing facilities - The CMC team is highly experienced in process development, production, and quality management, responsible for developing safe, robust, and economically viable production processes while ensuring quality compliance with regulatory requirements[31](index=31&type=chunk) - The company currently has no commercial-scale manufacturing facilities and no plans to establish its own, instead relying on CDMO partners for preclinical and clinical research production and future commercial supply[31](index=31&type=chunk) [Commercialization](index=10&type=section&id=%E5%95%86%E6%A5%AD%E5%8C%96) The company currently has no commercialized products, has established an internal marketing team for strategy development, but plans to collaborate with external pharmaceutical companies to maximize product commercial value, while actively exploring overseas markets - As of June 30, 2025, the company has no commercialized products[32](index=32&type=chunk) - The company has established an internal marketing team responsible for commercialization strategy and academic marketing, but does not intend to build an internal sales team, planning instead to collaborate with pharmaceutical companies possessing strong commercialization capabilities to leverage their sales networks[32](index=32&type=chunk) - For overseas markets, the company plans to develop more specific strategies after PB-119's commercialization in China, having initiated registration pathway planning for the Middle East market and exploring collaboration opportunities with multinational pharmaceutical companies[33](index=33&type=chunk) [PB-119 Commercialization Preparation](index=11&type=section&id=PB-119%E5%95%86%E6%A5%AD%E5%8C%96%E6%BA%96%E5%82%99) To ensure the successful launch of core product PegDac® (PB-119) in the Chinese market, the company has established a comprehensive commercial preparation system, including pre-launch strategy, pricing, academic promotion, patient support, innovative payment, and long-term medical value - The overall pre-launch strategy for PegDac® has been completed, and a scientific, competitive pricing strategy has been established[34](index=34&type=chunk) - The company is actively conducting multi-level academic conferences, collaborating with authoritative experts, and preparing core promotional materials and launch event resources[36](index=36&type=chunk) - A "Patient Care Program" plan has been developed, the final planning for innovative payment projects is actively progressing, and Investigator-Initiated Trial (IIT) planning has been initiated[35](index=35&type=chunk)[37](index=37&type=chunk) [Collaboration Agreement for Commercialization of PB-119](index=12&type=section&id=%E5%95%86%E6%A5%AD%E5%8C%96PB-119%E7%9A%84%E5%90%88%E4%BD%9C%E5%8D%94%E8%AD%B0) The company's collaboration agreement with a commercialization partner for PB-119 in mainland China terminated in June 2025, with both parties discussing potential new arrangements while the company seeks other partners - The company's collaboration agreement with a commercialization partner for PB-119 in mainland China terminated in **June 2025**[38](index=38&type=chunk) - Both parties are discussing potential new arrangements for PB-119's marketing and commercialization, and the company will also seek other potential partners[38](index=38&type=chunk) [Intellectual Property](index=12&type=section&id=%E7%9F%A5%E8%AD%98%E7%94%A2%E6%AC%8A) Intellectual property is crucial for the company's success, with 83 patents and patent applications as of June 30, 2025, including 13 patents and 15 applications related to core products, all clinical-stage candidates derived from the HECTOR® platform and PEGylation technology - As of June 30, 2025, the company owns **83 patents and patent applications**, of which **13 patents and 15 patent applications** are related to its core products[39](index=39&type=chunk) - All significant patents and patent applications are self-owned, and all clinical-stage candidate drugs are derived from the company's HECTOR® platform and PEGylation technology[39](index=39&type=chunk) [Future and Outlook](index=12&type=section&id=%E6%9C%AA%E4%BE%86%E5%8F%8A%E5%89%8D%E6%99%AF) Outlines the company's strategic priorities for accelerating core product commercialization, deepening pipeline value, and expanding global partnerships for future growth [Accelerating Core Product Commercialization to Benefit Chinese Patients](index=13&type=section&id=%E5%8A%A0%E9%80%9F%E6%A0%B8%E5%BF%83%E7%94%A2%E5%93%81%E5%95%86%E6%A5%AD%E5%8C%96%E9%80%B2%E7%A8%8B%EF%BC%8C%E6%83%A0%E5%8F%8A%E4%B8%AD%E5%9C%8B%E6%82%A3%E8%80%85) The company will continue to invest resources to support PB-119's NMPA review, aiming for a formal launch in mainland China in Q3 2025, with comprehensive market access and commercialization preparations underway - The core investigational product PB-119 is in a critical stage of NMPA review, and the company will fully advance the review process[41](index=41&type=chunk) - The goal is to successfully achieve the formal launch of PB-119 in the mainland China market in **Q3 2025**[41](index=41&type=chunk) - The company has initiated comprehensive market access preparations and commercialization strategies[41](index=41&type=chunk) [Deepening R&D Pipeline Value, Laying Out Future Growth Drivers](index=13&type=section&id=%E6%B7%B1%E5%8C%96%E7%A0%94%E7%99%BC%E7%AE%A1%E7%B7%9A%E5%83%B9%E5%80%BC%EF%BC%8C%E4%BD%88%E5%B1%80%E6%9C%AA%E4%BE%86%E5%A2%9E%E9%95%B7%E5%8B%95%E5%8A%9B) The company will continue to invest in R&D, explore existing pipeline potential, and actively advance two early-stage projects with potential "Best-in-Class" (BIC) prospects, aiming to complete preclinical studies and submit IND applications soon - The company will continue to invest in R&D, deeply explore the potential of its existing pipeline, and actively advance two early-stage R&D projects with potential "Best-in-Class" (BIC) prospects[42](index=42&type=chunk) - The objective is to complete relevant preparatory work and formally submit Investigational New Drug (IND) applications as soon as possible after the reporting period, aiming for an early entry into the clinical research stage[42](index=42&type=chunk) [Expanding Global Collaboration Network, Building an International Development Landscape](index=13&type=section&id=%E6%8B%93%E5%B1%95%E5%85%A8%E7%90%83%E5%90%88%E4%BD%9C%E7%B6%B2%E7%B5%A1%EF%BC%8C%E6%A7%8B%E5%BB%BA%E5%9C%8B%E9%9A%9B%E5%8C%96%E7%99%BC%E5%B1%95%E6%A0%BC%E5%B1%80) Internationalization is a key long-term strategy, with PB-119 registration pathway planning initiated for the Middle East to expand into Belt and Road countries, while continuously exploring diverse collaboration opportunities with multinational pharmaceutical companies - Internationalization is a crucial long-term strategic direction for the company, which has simultaneously initiated registration pathway planning for its core product PB-119 in the Middle East market[43](index=43&type=chunk) - The company will continue to actively explore and evaluate diverse collaboration opportunities with multinational pharmaceutical companies for joint development, in-licensing, or out-licensing of its R&D pipeline[43](index=43&type=chunk) [III. Financial Review](index=14&type=section&id=III.%20%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Provides a detailed analysis of the company's financial performance, including losses, expenses, cash flow, and balance sheet items, for the reporting period [Overview](index=14&type=section&id=%E6%A6%82%E8%A7%88) The company currently has no products approved for commercial sale and incurred operating losses during the reporting period, though total loss decreased year-over-year, with financial performance expected to fluctuate post-PB-119 commercialization - The company currently has no products approved for commercial sale and has not generated any revenue from product sales[44](index=44&type=chunk) Total Loss Comparison | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | | :--- | :--- | :--- | | Total Loss | 93.7 | 155.5 | - The total loss is primarily attributable to R&D expenses and administrative expenses, and financial performance is expected to fluctuate after PB-119's commercialization[44](index=44&type=chunk) [Loss for the Period](index=14&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) For the six months ended June 30, 2025, net loss was RMB 93.7 million, a decrease of RMB 61.8 million from the prior year, primarily due to reduced share-based compensation and lower R&D expenses as PB-119 entered the NDA stage - The net loss for the six months ended June 30, 2025, was **RMB 93.7 million**, a decrease of **RMB 61.8 million** compared to the same period last year[45](index=45&type=chunk) - The reduction in loss was primarily due to decreased share-based compensation expenses and lower R&D expenses as PB-119 entered the NDA stage[45](index=45&type=chunk) [Non-HKFRS Measures](index=14&type=section&id=%E9%9D%9E%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F) The company provides adjusted net loss as a supplementary financial measure, excluding non-cash items like share-based compensation, to better reflect core business performance, with adjusted net loss narrowing to RMB 51.1 million for the six months ended June 30, 2025 - Adjusted net loss refers to the net loss excluding the impact of non-cash items, specifically share-based compensation expenses[46](index=46&type=chunk) Adjusted Net Loss | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (93,672) | (155,490) | | Add: Share-based Compensation Expenses | 42,572 | 87,660 | | Adjusted Net Loss | (51,100) | (67,830) | [Revenue](index=15&type=section&id=%E6%94%B6%E5%85%A5) The company currently has no products approved for commercial sale and therefore generated no revenue from product sales - The company currently has no products approved for commercial sale and has not generated any revenue from product sales[49](index=49&type=chunk) [Research and Development Expenses](index=16&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, R&D expenses were RMB 26.3 million, a decrease of RMB 37.7 million from the prior year, mainly due to reduced share-based compensation and lower R&D costs as PB-119 entered the NDA stage R&D Expenses Breakdown | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Third-party Contract Expenses | 13,854 | 20,859 | | Staff Costs | 8,318 | 11,112 | | Raw Materials and Consumables Costs | 1,490 | 7,081 | | Share-based Compensation Expenses | 1,143 | 23,417 | | Depreciation and Amortization Expenses | 526 | 832 | | Other | 963 | 737 | | **Total** | **26,294** | **64,038** | - R&D expenses decreased by **RMB 37.7 million**, primarily due to a **RMB 22.3 million** reduction in share-based compensation expenses (resulting from the cancellation and modification of restricted share unit vesting conditions) and lower R&D costs as PB-119 entered the NDA stage[50](index=50&type=chunk) [Administrative Expenses](index=16&type=section&id=%E7%AE%A1%E7%90%86%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, administrative expenses were RMB 61.3 million, a decrease of RMB 30.0 million from the prior year, mainly due to reduced share-based compensation and lower listing expenses Administrative Expenses Breakdown | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Share-based Compensation Expenses | 41,429 | 64,243 | | Staff Costs | 6,356 | 7,478 | | Professional and Consulting Service Fees | 10,139 | 16,972 | | Depreciation and Amortization Expenses | 993 | 360 | | Other | 2,337 | 2,283 | | **Total** | **61,254** | **91,336** | - Administrative expenses decreased by **RMB 30.0 million**, primarily due to a **RMB 22.8 million** reduction in share-based compensation expenses (due to the cancellation and modification of restricted share units) and lower listing expenses following the completion of the IPO in **May 2025**[51](index=51&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The company primarily relies on equity financing for liquidity, with negative cash flow from operating activities during the reporting period; cash and cash equivalents increased by RMB 237.6 million for the six months ended June 30, 2025, mainly due to IPO proceeds - The company relies on equity financing as its primary source of liquidity, with negative cash flow generated from operating activities during the reporting period[52](index=52&type=chunk) Cash Flow Statement Summary | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (78,035) | (106,194) | | Net Cash From Investing Activities | 86,841 | 72,988 | | Net Cash From Financing Activities | 228,805 | 7,816 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 237,611 | (25,390) | | Cash and Cash Equivalents at End of Period | 264,529 | 51,757 | [Net Cash Used in Operating Activities](index=17&type=section&id=%E7%B6%93%E7%87%9F%E6%B4%BB%E5%8B%95%E6%89%80%E7%94%A8%E6%B7%A8%E7%8F%BE%E9%87%91) For the six months ended June 30, 2025, net cash used in operating activities was RMB 78.0 million, primarily due to R&D and administrative expenditures - For the six months ended June 30, 2025, net cash used in operating activities was **RMB 78.0 million**, primarily due to R&D and administrative expenditures[54](index=54&type=chunk) [Net Cash From Investing Activities](index=18&type=section&id=%E6%8A%95%E8%B3%87%E6%B4%BB%E5%8B%95%E6%89%80%E5%BE%97%E6%B7%A8%E7%8F%BE%E9%87%91) For the six months ended June 30, 2025, net cash from investing activities was RMB 86.8 million, primarily due to the redemption of financial assets - For the six months ended June 30, 2025, net cash from investing activities was **RMB 86.8 million**, mainly due to the redemption of financial assets[55](index=55&type=chunk) [Net Cash From Financing Activities](index=18&type=section&id=%E8%9E%8D%E8%B3%87%E6%B4%BB%E5%8B%95%E6%89%80%E5%BE%97%E6%B7%A8%E7%8F%BE%E9%87%91) For the six months ended June 30, 2025, net cash from financing activities was RMB 228.8 million, primarily due to proceeds from the IPO - For the six months ended June 30, 2025, net cash from financing activities was **RMB 228.8 million**, primarily due to proceeds from the IPO[56](index=56&type=chunk) [Cash and Cash Equivalents](index=18&type=section&id=%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) As of June 30, 2025, cash and cash equivalents totaled RMB 264.5 million, an increase of RMB 236.1 million from December 31, 2024, primarily due to net IPO proceeds - As of June 30, 2025, the Group's cash and cash equivalents amounted to **RMB 264.5 million**, an increase of **RMB 236.1 million** from **RMB 28.4 million** as of December 31, 2024[57](index=57&type=chunk) - This increase was primarily due to net proceeds from the IPO[57](index=57&type=chunk) [Borrowings and Gearing Ratio](index=18&type=section&id=%E5%80%9F%E6%AC%BE%E5%8F%8A%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, total borrowings decreased to RMB 75.1 million, and the gearing ratio significantly dropped to 32.3%, indicating a substantial improvement in financial leverage - As of June 30, 2025, the Group's total borrowings (including interest-bearing borrowings) amounted to **RMB 75.1 million**, a decrease of **RMB 24.9 million** from **RMB 100.0 million** as of December 31, 2024[58](index=58&type=chunk) - All interest-bearing borrowings are unsecured, due within one year, and carry interest rates ranging from **2.5% to 2.9%**[59](index=59&type=chunk) - The gearing ratio was **32.3%** as of June 30, 2025, a significant decrease from **176.6%** as of December 31, 2024[59](index=59&type=chunk) [Lease Liabilities](index=18&type=section&id=%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) Lease liabilities increased from RMB 1.5 million as of December 31, 2024, to RMB 9.0 million as of June 30, 2025, primarily due to the lease of new office premises in Hangzhou - Lease liabilities increased from **RMB 1.5 million** as of December 31, 2024, to **RMB 9.0 million** as of June 30, 2025[60](index=60&type=chunk) - This increase was primarily due to the company leasing new office premises in Hangzhou during the reporting period[60](index=60&type=chunk) [Material Investments](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the company held two transferable bank time deposits with a total fair value of approximately RMB 53.23 million, representing 5% or more of total assets, but had no other material investments - The company holds two transferable bank time deposits: one with a principal amount of **RMB 20 million**, maturing on April 4, 2026, with a fair value of approximately **RMB 21.39 million**[66](index=66&type=chunk) - The other has a total principal amount of **RMB 30 million**, maturing on August 1, 2026, with a total fair value of approximately **RMB 31.84 million**[66](index=66&type=chunk) - Except as disclosed above, the company held no other material investments representing **5% or more** of the Group's total assets during the reporting period[61](index=61&type=chunk) [Material Acquisitions and Disposals](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[62](index=62&type=chunk) [Foreign Exchange Risk](index=19&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The company's entities primarily operate in China, with some bank balances denominated in foreign currencies, exposing them to foreign currency risk; currently, there are no hedging instruments or policies, but management will monitor and consider appropriate measures - The Group's entities operate in the People's Republic of China, and certain bank balances are denominated in foreign currencies, exposing them to foreign currency risk[63](index=63&type=chunk) - As of June 30, 2025, the Group had no foreign exchange hedging instruments or foreign currency hedging policies, but management will continue to monitor and consider appropriate hedging measures if necessary in the future[63](index=63&type=chunk) [Capital Expenditure](index=19&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, total capital expenditure was approximately RMB 0.2 million, primarily for renovation design fees and office equipment - For the six months ended June 30, 2025, the Group's total capital expenditure was approximately **RMB 0.2 million**, primarily for renovation design fees and office equipment payments[64](index=64&type=chunk) [Charge on Assets](index=19&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%BC%E8%A8%98) As of June 30, 2025, and December 31, 2024, the company had no charges on any assets - As of June 30, 2025, and December 31, 2024, the Group had no charges on any assets[65](index=65&type=chunk) [Contingent Liabilities](index=20&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company had no material contingent liabilities, with no significant changes or arrangements up to the announcement date - As of June 30, 2025, the Group had no material contingent liabilities[67](index=67&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had 58 employees, with a remuneration policy including salaries, bonuses, provident funds, social insurance, and other benefits, along with continuous education and training programs to maintain staff quality and motivation - As of June 30, 2025, the company had a total of **58 employees**, a decrease from **64** as of December 31, 2024[68](index=68&type=chunk) - Employee remuneration includes salaries, bonuses, provident funds, social insurance contributions, and other benefits, with social insurance funds and housing provident funds paid in accordance with applicable laws and regulations[68](index=68&type=chunk) - The company provides continuous education and training programs, including internal training, and offers competitive salaries, bonuses, and share-based payments as incentives and benefits to employees[69](index=69&type=chunk) [Future Plans for Material Investments and Capital Assets](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of the announcement date, the company had not authorized any plans for material investments or acquisitions of capital assets - As of the date of this announcement, the company has not authorized any plans for material investments or acquisitions of capital assets[70](index=70&type=chunk) [IV. Key Risks and Uncertainties](index=21&type=section&id=IV.%20%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E7%A2%BA%E5%AE%9A%E6%80%A7) Details the primary operational risks faced by the company, including market competition, intellectual property protection, regulatory uncertainties, and financial sustainability [Key Risk Factors](index=21&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%9B%A0%E7%B4%A0) The company faces multiple operational risks, including intense market competition, insufficient intellectual property protection, uncertainties in PB-119 approval and sales, lengthy and costly drug development, unfulfilled safety/efficacy, adverse events, off-label use risks, third-party partner performance, smaller-than-expected market size, and continued losses - The company may face intense competition and rapid technological changes, with competitors potentially developing more advanced or effective therapies[71](index=71&type=chunk) - It may be unable to successfully obtain or maintain adequate patent protection for its candidate drugs through intellectual property[71](index=71&type=chunk) - The business, financial condition, operating results, and prospects are largely dependent on the successful approval and sale of PB-119[71](index=71&type=chunk) - The clinical drug development cycle is lengthy, capital-intensive, and uncertain, potentially preventing the commercialization of candidate drugs[71](index=71&type=chunk) - Candidate drugs may cause adverse events or fail to demonstrate safety and efficacy satisfactory to regulatory authorities[71](index=71&type=chunk) - There is a performance risk associated with third-party partners, which could affect regulatory approval or commercialization of candidate drugs[71](index=71&type=chunk) - The market size for candidate drugs may be smaller than anticipated, and the company has incurred significant net losses since its inception, which may continue in the future[76](index=76&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) Provides information on the company's corporate governance practices, interim dividends, compliance with trading codes, audit committee review, and IPO proceeds utilization [Interim Dividend](index=22&type=section&id=I.%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to recommend an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to recommend an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[73](index=73&type=chunk) [Compliance with the Standard Code for Securities Transactions](index=22&type=section&id=II.%20%E9%81%B5%E5%AE%88%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted a standard code for securities transactions by directors, supervisors, and relevant employees, confirming compliance by all directors and supervisors since the listing date, with no reported employee breaches - The company has adopted a standard code to regulate all dealings in the company's securities by directors, supervisors, and relevant employees since the listing date[74](index=74&type=chunk) - All directors and supervisors have confirmed their compliance with the standard code from the listing date up to the date of this announcement, and to the company's knowledge, no employee breaches of the standard code have occurred[74](index=74&type=chunk) [Compliance with the Corporate Governance Code](index=22&type=section&id=III.%20%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company adopted and applied the Corporate Governance Code, complying with all applicable code provisions since the listing date, except for the non-segregation of Chairman and CEO roles - The company has adopted and applied the principles and code provisions set out in Part 2 of the Corporate Governance Code as its own code of corporate governance practices[75](index=75&type=chunk) - From the listing date up to the date of this announcement, the company has complied with all applicable code provisions of the Corporate Governance Code, except for code provision C.2.1 (which stipulates that the roles of Chairman and Chief Executive Officer should be separate)[75](index=75&type=chunk) [Chairman and Chief Executive Officer Roles](index=23&type=section&id=%E4%B8%BB%E5%B8%AD%E8%88%87%E8%A1%8C%E6%94%BF%E7%B8%BD%E8%A3%81%E8%81%B7%E8%B2%AC) Company Chairman and CEO roles are concurrently held by Dr. Michael Min XU, an arrangement the Board believes ensures consistent internal leadership, efficient strategic planning, and improved communication, which will be continuously reviewed - The roles of Chairman and Chief Executive Officer are concurrently held by Dr. Michael Min XU, which deviates from Corporate Governance Code provision C.2.1[77](index=77&type=chunk) - The Board believes this arrangement facilitates consistent internal leadership for the Group, enhances the efficiency of the Board's overall strategic planning and execution, and promotes information exchange between management and the Board[77](index=77&type=chunk) [Audit Committee and Review of Interim Results](index=23&type=section&id=IV.%20%E5%AF%A9%E8%A8%88%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%AF%A9%E9%96%B1) The company established an Audit Committee, comprising three directors with Ms. Fan Xinpeng as Chair, which reviewed and concurred with the adopted accounting principles and practices, and the unaudited condensed consolidated interim financial results for the six months ended June 30, 2025 - The Audit Committee comprises three directors, with Ms. Fan Xinpeng serving as Chair, and its primary responsibilities include recommending the appointment or removal of external auditors, monitoring their independence, guiding internal audit work, reviewing financial information, and assessing the effectiveness of internal controls[78](index=78&type=chunk) - The Audit Committee has reviewed and concurred with the accounting principles and practices adopted by the Group, and has reviewed the unaudited condensed consolidated interim financial results for the six months ended June 30, 2025[79](index=79&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=V.%20%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities from the listing date to the announcement date, and no treasury shares were held as of June 30, 2025 - From the listing date up to the date of this announcement, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[80](index=80&type=chunk) - As of June 30, 2025, the company held no treasury shares, and no shares had been repurchased but were awaiting cancellation[80](index=80&type=chunk) [Use of Proceeds from Global Offering](index=24&type=section&id=VI.%20%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The company listed on the HKEX on May 19, 2025, raising net proceeds of approximately RMB 212.6 million from the global offering; as of June 30, 2025, all proceeds remained unutilized and will be allocated as per the prospectus for PB-119 commercialization, indication expansion, and PB-718 development - The company was listed on the Stock Exchange of Hong Kong Limited (HKEX) on **May 19, 2025**, with net proceeds from the global offering amounting to approximately **RMB 212.6 million**[81](index=81&type=chunk) Use of Proceeds from Global Offering and Expected Timetable | Use of Proceeds | Approximate Percentage of Total Net Proceeds (%) | Planned Allocation of Net Proceeds (RMB millions) | Net Proceeds Utilized During Reporting Period (RMB millions) | Unutilized Net Proceeds (as of June 30, 2025) (RMB millions) | Expected Timetable for Use of Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercialization and Indication Expansion of our Core Product PB-119 | 50.2 | 106.7 | – | 106.7 | Expected to be fully utilized by end of 2027 | | Further Development of our Key Product PB-718 | 34.5 | 73.3 | – | 73.3 | Expected to be fully utilized by end of 2027 | | Ongoing and Planned R&D for our Other Pipeline Candidate Products | 5.3 | 11.3 | – | 11.3 | Expected to be fully utilized by end of 2026 | | Business Development Activities and Strengthening our Overseas Business | 1.0 | 2.1 | – | 2.1 | Expected to be fully utilized by end of 2026 | | Working Capital and Other General Corporate Purposes | 9.0 | 19.2 | – | 19.2 | Expected to be fully utilized by end of 2025 | | **Total** | **100** | **212.6** | **–** | **212.6** | | [Events After Reporting Period](index=25&type=section&id=VII.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the announcement date, no significant events requiring additional disclosure or adjustment occurred after the reporting period - As of the date of this announcement, no significant events requiring additional disclosure or adjustment have occurred after the reporting period[83](index=83&type=chunk) [Continuing Disclosure Obligations under Listing Rules](index=25&type=section&id=VIII.%E6%A0%B9%E6%93%9A%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E7%9A%84%E6%8C%81%E7%BA%8C%E6%8A%AB%E9%9C%B2%E8%B2%AC%E4%BB%BB) The company has no disclosure obligations under Listing Rules 13.20, 13.21, and 13.22 - The company has no disclosure obligations under Listing Rules 13.20, 13.21, and 13.22[84](index=84&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=25&type=section&id=IX.%20%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement is published on the company's and HKEX websites, and the interim report will be dispatched to shareholders and published online as per Listing Rules - This interim results announcement is published on the company's website (www.pegbio.com) and the HKEX website (www.hkexnews.hk)[85](index=85&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched in printed form to shareholders who have requested company communications and published on the company's and HKEX websites, respectively, in accordance with the Listing Rules[85](index=85&type=chunk) [Consolidated Financial Statements](index=26&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) Presents the company's consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company reported a loss for the period of RMB 93.672 million, a significant reduction from RMB 155.490 million in the prior year, primarily due to decreased R&D and administrative expenses Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Other Net Income | 178 | 4,053 | | Selling and Marketing Expenses | (4,765) | (3,009) | | Research and Development Expenses | (26,294) | (64,038) | | Administrative Expenses | (61,254) | (91,336) | | Operating Loss | (92,135) | (154,330) | | Finance Costs | (1,537) | (1,160) | | Loss Before Tax | (93,672) | (155,490) | | Income Tax | – | – | | Loss for the Period | (93,672) | (155,490) | | Total Comprehensive Income for the Period | (93,672) | (155,490) | | Loss per Share – Basic and Diluted (RMB) | (0.25) | (0.42) | [Consolidated Statement of Financial Position](index=27&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets increased to RMB 383.347 million, and total equity significantly grew to RMB 260.449 million, with a notable improvement in net current assets, reflecting enhanced capital strength post-IPO Consolidated Statement of Financial Position Summary | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 37,268 | 28,063 | | Current Assets | 346,079 | 190,294 | | **Total Assets** | **383,347** | **218,357** | | Current Liabilities | 112,535 | 157,666 | | Net Current Assets | 233,544 | 32,628 | | Non-current Liabilities | 10,363 | 3,221 | | **Net Assets** | **260,449** | **57,470** | | Total Equity Attributable to Equity Holders of the Company | 255,223 | 52,190 | | Non-controlling Interests | 5,226 | 5,280 | | **Total Equity** | **260,449** | **57,470** | [Notes](index=29&type=section&id=%E9%99%84%E8%A8%BB) Provides detailed explanations and disclosures for the financial statements, covering accounting policies, specific financial items, and other relevant information [1 Basis of Preparation](index=29&type=section&id=1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This interim financial report is prepared in accordance with HKEX Listing Rules and HKAS 34, reviewed by the Audit Committee, and authorized for publication, though it remains unaudited but reviewed by KPMG - This interim financial report is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[89](index=89&type=chunk) - The report has been reviewed by the company's Audit Committee and was authorized for publication on **August 26, 2025**[89](index=89&type=chunk) - This interim financial report is unaudited, but KPMG has performed a review in accordance with Hong Kong Standard on Review Engagements 2410[90](index=90&type=chunk) [2 Changes in Accounting Policies](index=29&type=section&id=2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The group applied HKAS 21 amendment "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," but it had no material impact on this interim report due to the absence of relevant foreign currency transactions - The Group has applied the amendment to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" issued by the Hong Kong Institute of Certified Public Accountants for this accounting period[91](index=91&type=chunk) - As the Group did not engage in any foreign currency transactions where one foreign currency is not exchangeable into another, this amendment had no material impact on this interim report[91](index=91&type=chunk) [3 Other Net Income](index=30&type=section&id=3%20%E5%85%B6%E4%BB%96%E6%B7%A8%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, other net income was RMB 0.178 million, a significant decrease from RMB 4.053 million in the prior year, mainly due to reduced gains from financial instruments and government grants, and increased exchange losses Other Net Income Breakdown | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Realized and Unrealized Net Gains from Financial Instruments at Fair Value Through Profit or Loss | 1,523 | 3,280 | | Government Grants | 1 | 202 | | Bank Deposit Interest Income | 174 | 638 | | Exchange Losses | (1,532) | (3) | | Other | 12 | (64) | | **Total** | **178** | **4,053** | [4 Loss Before Tax](index=30&type=section&id=4%20%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) Loss before tax is stated after deducting items such as finance costs, depreciation of property, plant and equipment, depreciation of right-of-use assets, amortization of intangible assets, and equity-settled share-based payment expenses Finance Costs Breakdown | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on Interest-Bearing Borrowings | 1,391 | 1,093 | | Interest on Lease Liabilities | 146 | 67 | | **Total** | **1,537** | **1,160** | Other Items Breakdown | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 451 | 388 | | Depreciation of Right-of-Use Assets | 926 | 724 | | Amortization of Intangible Assets | 154 | 140 | | Equity-Settled Share-based Payment Expenses | 42,572 | 87,660 | [5 Income Tax](index=31&type=section&id=5%20%E6%89%80%E5%BE%97%E7%A8%85) The company's Chinese subsidiaries are subject to a 25% corporate income tax rate and benefit from a 100% super deduction for eligible R&D expenses; the group had no taxable profits for the six months ended June 30, 2025, and 2024 - The company's subsidiaries established and operating in China are subject to Chinese corporate income tax at a rate of **25%**[96](index=96&type=chunk) - Under tax incentive policies, eligible R&D expenses are allowed a **100% super deduction** from taxable income[96](index=96&type=chunk) - For the six months ended June 30, 2024, and 2025, the Group had no taxable profits[97](index=97&type=chunk) [6 Loss Per Share](index=31&type=section&id=6%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, both basic and diluted loss per share were RMB 0.25, a reduction from RMB 0.42 in the prior year, primarily due to the decreased loss attributable to equity holders - For the six months ended June 30, 2025, the basic loss per share was **RMB 0.25** (H1 2024: RMB 0.42)[98](index=98&type=chunk) - Diluted loss per share is the same as basic loss per share because the company has no outstanding ordinary shares or potential ordinary shares with a dilutive effect[99](index=99&type=chunk) [7 Right-of-Use Assets](index=31&type=section&id=7%20%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) For the six months ended June 30, 2025, the company recognized new right-of-use assets of RMB 9.559 million, primarily for office building leases - For the six months ended June 30, 2025, the Group entered into lease agreements for the use of office buildings and recognized new right-of-use assets of **RMB 9.559 million**[100](index=100&type=chunk) [8 Prepayments and Other Receivables](index=31&type=section&id=8%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total prepayments and other receivables were RMB 13.297 million, an increase from RMB 8.247 million as of December 31, 2024, mainly due to increased prepayments to suppliers Prepayments and Other Receivables Breakdown | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments to Suppliers | 9,312 | 2,886 | | Prepayments for Listing Expenses | – | 1,999 | | Other Receivables and Deposits | 3,985 | 3,362 | | **Total** | **13,297** | **8,247** | - All prepayments and other receivables are expected to be recovered or recognized as expenses within one year[101](index=101&type=chunk) [9 Financial Assets at Fair Value Through Profit or Loss](index=32&type=section&id=9%20%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, total financial assets at fair value through profit or loss were RMB 68.185 million, a significant decrease from RMB 153.655 million as of December 31, 2024, primarily due to a reduction in transferable bank time deposits Financial Assets at Fair Value Through Profit or Loss Breakdown | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Transferable Bank Time Deposits | 53,231 | 138,522 | | Wealth Management Products | 14,954 | 15,133 | | **Total** | **68,185** | **153,655** | - Transferable bank time deposits are primarily used for short-term cash management and will be sold in the secondary market within one year based on cash needs[102](index=102&type=chunk) [10 Trade and Other Payables](index=32&type=section&id=10%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables were RMB 35.872 million, a decrease from RMB 56.394 million as of December 31, 2024, mainly due to reduced trade payables and other payables Trade and Other Payables Breakdown | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables (within one year) | 26,640 | 34,933 | | Trade Payables (over one year) | 338 | 190 | | Accrued Staff Costs | 2,416 | 3,958 | | Taxes Payable | 312 | 429 | | Other Payables and Accrued Expenses | 6,166 | 16,884 | | **Total** | **35,872** | **56,394** | - All trade and other payables are expected to be settled or repaid on demand within one year[104](index=104&type=chunk) [11 Interest-Bearing Borrowings](index=33&type=section&id=11%20%E8%A8%88%E6%81%AF%E5%80%9F%E6%AC%BE) As of June 30, 2025, total interest-bearing borrowings were RMB 75.059 million, a decrease from RMB 100.003 million as of December 31, 2024; all borrowings are unsecured and due within one year Interest-Bearing Borrowings Breakdown | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Loans | 75,059 | 91,582 | | Letter of Credit Financing | – | 8,421 | | **Total** | **75,059** | **100,003** | - As of June 30, 2025, all the above interest-bearing borrowings are unsecured, accounted for at amortized cost, and will be settled within one year[105](index=105&type=chunk) [12 Capital, Reserves and Dividends](index=33&type=section&id=12%20%E8%B3%87%E6%9C%AC%E3%80%81%E5%84%B2%E5%82%99%E5%8F%8A%E8%82%A1%E6%81%AF) The company completed its H-share listing in May 2025, issuing 19,284,000 new H-shares for gross proceeds of approximately RMB 275.924 million, with RMB 19.284 million credited to share capital and the premium to capital reserve; no dividends were proposed this period, and the RSU plan continues to incentivize employees [(a) Share Capital and Capital Reserve](index=33&type=section&id=(a)%20%E8%82%A1%E6%9C%AC%E5%8F%8A%E8%B3%87%E6%9C%AC%E5%84%B2%E5%82%99) In May 2025, the company issued 19,284,000 new H-shares at HK$15.60 each through an IPO on HKEX, generating gross proceeds of approximately RMB 275.924 million, with RMB 19.284 million credited to share capital and RMB 234.795 million to capital reserve - In **May 2025**, the company issued **19,284,000 new H-shares** at a price of **HK$15.60** per share through an initial public offering on The Stock Exchange of Hong Kong Limited[106](index=106&type=chunk) - The gross proceeds from the offering amounted to **HK$300,823,000** (equivalent to approximately **RMB 275.924 million**), of which **RMB 19.284 million** was credited to share capital, and the corresponding premium of **RMB 234.795 million** was recognized in capital reserve[106](index=106&type=chunk) [(b) Dividends](index=33&type=section&id=(b)%20%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the company's directors did not recommend the payment of any dividends - For the six months ended June 30, 2025, the company's directors did not recommend the payment of any dividends (for the six months ended June 30, 2024: nil)[107](index=107&type=chunk) [(c) Equity-Settled Share-Based Transactions](index=33&type=section&id=(c)%20%E4%BB%A5%E6%AC%8A%E7%9B%8A%E7%B5%90%E7%AE%97%E4%BB%A5%E8%82%A1%E4%BB%BD%E7%82%BA%E5%9F%BA%E7%A4%8E%E7%9A%84%E4%BA%A4%E6%98%93) The company implements a Restricted Share Unit (RSU) scheme to incentivize employees, incorporating service and non-market performance conditions; for the six months ended June 30, 2025, equity-settled share-based payment expenses of RMB 42.572 million were recognized - The company has adopted a Restricted Share Unit (RSU) scheme to provide incentives to eligible employees of the Group, which includes certain service conditions and non-market performance conditions[108](index=108&type=chunk) - Certain terms and conditions of the scheme were revised in **February 2024**, changing the implicit service period to **12 months** after the completion date of the initial public offering[108](index=108&type=chunk) Restricted Share Unit Movement | Item | 2025 (Number of Company's Shares) | 2024 (Number of Company's Shares) | | :--- | :--- | :--- | | Beginning of Period | 29,175,230 | 25,244,458 | | Granted | – | 11,356,166 | | Forfeited | – | (97,737) | | Cancelled | – | (7,327,657) | | End of Period | 29,175,230 | 29,175,230 | - The Group recognized equity-settled share-based payment expenses of **RMB 42.572 million** for the six months ended June 30, 2025[110](index=110&type=chunk) [Definitions](index=35&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used in the report to ensure a clear understanding of its content [Glossary](index=38&type=section&id=%E8%A9%9E%E5%BD%99%E8%A1%A8) This section provides explanations for medical and biotechnology-related professional terms used in the report, including drug mechanisms of action, disease names, and clinical trial stages

[Company Overview and Financial Summary](index=1&type=section&id=I.%20Company%20Overview%20and%20Financial%20Summary) [Company Information](index=1&type=section&id=1.1%20Company%20Information) Austar Lifesciences Limited (6118) provides integrated engineering solutions and pharmaceutical equipment in China, incorporated in the Cayman Islands - Company Name: **Austar Lifesciences Limited (Stock Code: 6118)**[2](index=2&type=chunk) - Primary Business: Providing integrated engineering solutions, manufacturing, and distributing pharmaceutical equipment and consumables to pharmaceutical enterprises and research institutions in China[9](index=9&type=chunk) - Registered in the Cayman Islands, listed on the Main Board of the Hong Kong Stock Exchange since November 7, 2014[9](index=9&type=chunk) [Financial Summary](index=1&type=section&id=1.2%20Financial%20Summary) Revenue decreased by 5.6% to RMB661.9 million, but profit before tax and EPS significantly increased, with a slight rise in gross margin Group Financial Summary (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 661,905 | 700,919 | -5.6% | | Gross Profit | 139,143 | 145,417 | -4.3% | | Profit Before Income Tax | 30,303 | 9,186 | 230.0% | | Profit Attributable to Owners of the Company | 24,999 | 5,877 | 325.4% | | Gross Profit Margin | 21.0% | 20.7% | +0.3pp | | Basic Earnings Per Share | RMB0.05 | RMB0.01 | 400.0% | | Total Assets (Period-end) | 2,028,382 | 2,083,635 | -2.6% | | Net Assets (Period-end) | 810,367 | 793,468 | +2.1% | | Gearing Ratio (Period-end) | 30.9% | 33.9% | -3.0pp | [Financial Statements](index=2&type=section&id=II.%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue declined 5.6% to RMB661.9 million, yet operating profit and profit before tax significantly increased due to improved other net income and lower finance costs Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 661,905 | 700,919 | -5.6% | | Cost of Sales | (522,762) | (555,502) | -5.9% | | Gross Profit | 139,143 | 145,417 | -4.3% | | Selling and Marketing Expenses | (72,724) | (63,937) | +13.7% | | Administrative Expenses | (41,392) | (51,209) | -19.2% | | Research and Development Expenses | (16,480) | (23,468) | -29.8% | | Other Income / (Losses) – Net | 16,441 | (603) | N/A (Turned profitable) | | Operating Profit | 34,753 | 17,254 | +101.4% | | Finance Costs – Net | (5,904) | (7,749) | -23.8% | | Profit Before Income Tax | 30,303 | 9,186 | +230.0% | | Profit for the Period | 23,614 | 4,189 | +463.7% | | Profit Attributable to Owners of the Company for the Period | 24,999 | 5,877 | +325.4% | | Basic and Diluted Earnings Per Share | 0.05 | 0.01 | +400.0% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Total comprehensive income for the period significantly increased to RMB16.9 million, driven by higher profit for the period despite exchange losses Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Profit for the Period | 23,614 | 4,189 | | Other Comprehensive (Expenses) / Income, Net of Tax | (6,715) | 718 | | Total Comprehensive Income for the Period | 16,899 | 4,907 | | Total Comprehensive Income Attributable to Owners of the Company | 17,943 | 6,708 | | Total Comprehensive Income / (Expenses) Attributable to Non-controlling Interests | (1,044) | (1,801) | - Exchange differences on translation from functional currency to presentation currency were **RMB(6,490) thousand**, compared to RMB3,148 thousand in the prior period, indicating a shift from exchange gain to expense[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets slightly decreased to RMB2.03 billion, but net assets grew 2.1%, and the gearing ratio improved from 33.9% to 30.9% Key Data from Condensed Consolidated Statement of Financial Position (Period-end) | Indicator | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,028,382 | 2,083,635 | -2.6% | | Total Non-current Assets | 529,350 | 531,874 | -0.5% | | Total Current Assets | 1,499,032 | 1,551,761 | -3.4% | | Total Equity | 810,367 | 793,468 | +2.1% | | Total Liabilities | 1,218,015 | 1,290,167 | -5.6% | | Total Non-current Liabilities | 121,919 | 101,481 | +20.1% | | Total Current Liabilities | 1,096,096 | 1,188,686 | -7.7% | - The gearing ratio decreased from **33.9%** as of December 31, 2024, to **30.9%** as of June 30, 2025, indicating a reduction in leverage[3](index=3&type=chunk)[44](index=44&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=III.%20Notes%20to%20the%20Financial%20Statements) [General Information and Basis of Preparation](index=6&type=section&id=3.1%20General%20Information%20and%20Basis%20of%20Preparation) Unaudited interim financial data, prepared under IAS 34 and HKEX Listing Rules, with no significant impact from IFRS revisions - These condensed consolidated interim financial statements are **unaudited** and presented in **RMB thousands**[9](index=9&type=chunk)[10](index=10&type=chunk) - The basis of preparation follows **International Accounting Standard 34 'Interim Financial Reporting'** and the **HKEX Listing Rules**[11](index=11&type=chunk) - Application of amendments to IFRS accounting standards (e.g., IAS 21) had **no significant impact** on the financial position and performance for the current and prior periods[12](index=12&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3.2%20Revenue%20and%20Segment%20Information) Revenue primarily from integrated engineering solutions, reported across three segments, with varied gross profit performance and increased international revenue share [Revenue Classification](index=7&type=section&id=3.2.1%20Revenue%20Classification) Integrated engineering solution contracts generated RMB449.5 million in revenue, representing 67.9% of total revenue, primarily recognized over time Revenue Classification from Contracts with Customers (For the six months ended June 30) | Type of Goods or Services | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from Integrated Engineering Solution Contracts | 449,537 | 486,146 | -7.5% | | Revenue from Sales of Goods | 168,715 | 201,727 | -16.4% | | Revenue from Provision of Services | 43,653 | 13,046 | +234.6% | | Total | 661,905 | 700,919 | -5.6% | | Timing of Revenue Recognition: Over time | 449,537 | 486,146 | -7.5% | | Timing of Revenue Recognition: At a point in time | 212,368 | 214,773 | -1.1% | [Segment Results](index=8&type=section&id=3.2.2%20Segment%20Results) Segment gross profits varied: Integrated Process and Packaging Equipment Systems declined 17.8%, while Consulting, Digitalization, and Construction grew 3.1% Segment Gross Profit (For the six months ended June 30) | Segment | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Integrated Process and Packaging Equipment Systems | 34,756 | 42,298 | -17.8% | | Consulting, Digitalization, and Construction | 38,525 | 37,359 | +3.1% | | Life Science Equipment and Consumables | 65,862 | 65,760 | +0.2% | | Total Gross Profit for Reportable Segments | 139,143 | 145,417 | -4.3% | Total Segment Assets (Period-end) | Segment | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Integrated Process and Packaging Equipment Systems | 1,107,958 | 1,143,870 | | Consulting, Digitalization, and Construction | 516,533 | 502,916 | | Life Science Equipment and Consumables | 219,006 | 218,154 | | Total Segment Assets | 1,843,497 | 1,864,940 | Total Segment Liabilities (Period-end) | Segment | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Integrated Process and Packaging Equipment Systems | 440,443 | 471,044 | | Consulting, Digitalization, and Construction | 269,578 | 252,807 | | Life Science Equipment and Consumables | 77,329 | 96,529 | | Total Segment Liabilities | 787,350 | 820,380 | [Geographical Information](index=12&type=section&id=3.2.3%20Geographical%20Information) Mainland China remains the primary revenue source, but its share decreased as other regions' revenue grew 33.3%, indicating global expansion success Revenue by Geographical Region (For the six months ended June 30) | Region | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 596,869 | 652,139 | -8.5% | | Other Regions | 65,036 | 48,780 | +33.3% | | Total | 661,905 | 700,919 | -5.6% | Non-current Assets by Geographical Region (Period-end) | Region | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Mainland China | 482,945 | 492,111 | | Other Regions | 28,790 | 24,594 | | Total | 511,735 | 516,705 | [Other Income and Expenses](index=13&type=section&id=3.3%20Other%20Income%20and%20Expenses) Net other income turned profitable due to exchange gains and early lease termination, while finance costs decreased and tax expense rose [Other Income / (Losses) – Net](index=13&type=section&id=3.3.1%20Other%20Income%20%2F%20(Losses)%20%E2%80%93%20Net) Net other income significantly improved to RMB16.4 million from a prior-year loss, driven by exchange gains and early lease termination gains Other Income / (Losses) – Net (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Loss on disposal of property, plant and equipment | (91) | (13) | | Loss on disposal of intangible assets | (300) | – | | Exchange gains / (losses), net | 11,433 | (2,544) | | Gain on early termination of lease contracts | 3,070 | – | | Others | 2,329 | 1,954 | | Total | 16,441 | (603) | [Finance Costs – Net](index=14&type=section&id=3.3.2%20Finance%20Costs%20%E2%80%93%20Net) Net finance costs decreased to RMB5.9 million from RMB7.7 million, mainly due to lower interest expenses from reduced borrowings Finance Costs – Net (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Interest expense – bank borrowings | (5,774) | (7,767) | | Interest expense – lease liabilities | (873) | (1,431) | | Interest expense – other financial liabilities | (96) | (96) | | Total finance costs | (6,743) | (9,294) | | Finance income – bank deposits | 839 | 1,545 | | Finance costs – net | (5,904) | (7,749) | [Income Tax Expense](index=14&type=section&id=3.3.3%20Income%20Tax%20Expense) Income tax expense increased to RMB6.7 million due to higher profit before tax; Chinese subsidiaries benefit from preferential tax rates Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Current income tax expense | 5,728 | 2,800 | | Deferred tax expense | 961 | 2,197 | | Total | 6,689 | 4,997 | - Shanghai Austar, Austar Shijiazhuang, and Austar Hengxun, as high-tech enterprises, enjoy a **preferential corporate income tax rate of 15%**[26](index=26&type=chunk) [Share of Net Profit / (Loss) of Investments Accounted for Using the Equity Method](index=41&type=section&id=3.3.4%20Share%20of%20Net%20Profit%20%2F%20(Loss)%20of%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method) Share of net profit from equity-accounted investments turned to a **RMB1.5 million gain** from a prior-year loss, driven by joint venture profits - Share of net profit from investments accounted for using the equity method shifted from a net loss of **RMB0.3 million** in H1 2024 to a net gain of **RMB1.5 million** in H1 2025[100](index=100&type=chunk) - Key contributions came from increased profits of joint ventures **ROTA Verpackungstechnik GmbH & Co. KG (ROTA KG)** and **Nozzle Fluid Technology (Shanghai) Co., Ltd.**[100](index=100&type=chunk) [Earnings Per Share and Dividends](index=15&type=section&id=3.4%20Earnings%20Per%20Share%20and%20Dividends) Basic and diluted EPS significantly increased to **RMB0.05** from RMB0.01; no dividends were paid, declared, or proposed Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company for the Period (RMB'000) | 24,999 | 5,877 | | Weighted average number of ordinary shares in issue (thousands of shares) | 512,582 | 512,582 | | Basic and diluted earnings per share (RMB) | 0.05 | 0.01 | - Diluted earnings per share are the same as basic earnings per share as there are **no potential ordinary shares** for the period[30](index=30&type=chunk) - For the six months ended June 30, 2025, the Company **did not pay, declare, or propose any dividends**[31](index=31&type=chunk) [Trade and Other Receivables and Payables](index=16&type=section&id=3.5%20Trade%20and%20Other%20Receivables%20and%20Payables) Trade and bills receivable decreased to RMB351.8 million, driven by reduced short-term receivables; total payables also declined [Trade Receivables and Bills Receivable](index=16&type=section&id=3.5.1%20Trade%20Receivables%20and%20Bills%20Receivable) Total trade and bills receivable decreased **17.2%** to **RMB351.8 million**, with a **47.9% reduction** in receivables aged within 6 months Trade Receivables and Bills Receivable (Period-end) | Item | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Trade receivables | 336,830 | 431,813 | | Bills receivable | 64,255 | 43,170 | | Less: Loss allowance | (49,297) | (50,449) | | Total | 351,788 | 424,534 | Ageing Analysis of Trade Receivables (Period-end) | Ageing | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Within 6 months | 139,010 | 266,333 | | 6 months to 1 year | 72,906 | 45,967 | | 1 to 2 years | 54,036 | 56,252 | | 2 to 3 years | 34,429 | 33,524 | | Over 3 years | 36,449 | 29,737 | | Total | 336,830 | 431,813 | [Trade and Other Payables](index=17&type=section&id=3.5.2%20Trade%20and%20Other%20Payables) Total trade and other payables decreased **5.9%** to **RMB601.8 million**, with trade payables increasing but other payables declining Trade and Other Payables (Period-end) | Item | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Trade payables | 412,059 | 382,106 | | Payables for vendor project costs and construction fees | 73,918 | 108,252 | | Wages and welfare payables | 48,990 | 65,987 | | Accrued expenses | 30,283 | 37,081 | | After-sales service provision | 13,425 | 15,954 | | Indirect taxes payable | 1,207 | 5,525 | | Amounts due to employees | 1,124 | 2,681 | | Others | 20,792 | 21,685 | | Total | 601,798 | 639,271 | Ageing Analysis of Trade Payables (Period-end) | Ageing | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Within 6 months | 204,605 | 269,889 | | 6 months to 1 year | 103,004 | 47,041 | | 1 to 2 years | 79,567 | 41,792 | | 2 to 3 years | 15,626 | 8,235 | | Over 3 years | 9,257 | 15,149 | | Total | 412,059 | 382,106 | [Borrowings and Commitments](index=18&type=section&id=3.6%20Borrowings%20and%20Commitments) Long-term borrowings stable, short-term borrowings decreased, and capital commitments for property, plant, and equipment also reduced [Long-term Borrowings](index=18&type=section&id=3.6.1%20Long-term%20Borrowings) Total long-term borrowings stable at RMB124.4 million, with a shift from current to non-current portion; interest rates 2.65%-3.70% Long-term Borrowings (Period-end) | Item | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Secured long-term bank borrowings | 17,066 | 35,869 | | Unsecured long-term bank borrowings | 107,370 | 88,157 | | Total | 124,436 | 124,026 | | Less: Long-term borrowings due within one year | (62,838) | (98,884) | | Amounts shown under non-current liabilities | 61,598 | 25,142 | - Secured long-term bank borrowings bear interest rates ranging from **3.10% to 3.65%**, while unsecured long-term bank borrowings range from **2.65% to 3.70%**[37](index=37&type=chunk) Long-term Borrowings Risk Exposure (Period-end) | Type | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Fixed-rate borrowings | 27,692 | 25,880 | | Floating-rate borrowings | 96,744 | 98,146 | | Total | 124,436 | 124,026 | [Short-term Borrowings](index=20&type=section&id=3.6.2%20Short-term%20Borrowings) Total short-term borrowings decreased to RMB206.0 million, with secured borrowings down and unsecured up; interest rates 1.20%-3.65% Short-term Borrowings (Period-end) | Item | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Secured short-term bank borrowings | 41,959 | 72,579 | | Unsecured short-term bank borrowings | 164,086 | 157,171 | | Total | 206,045 | 229,750 | - Secured short-term bank borrowings bear interest rates ranging from **1.20% to 3.00%**, while unsecured short-term bank borrowings range from **2.70% to 3.65%**[43](index=43&type=chunk)[44](index=44&type=chunk) [Capital Commitments](index=21&type=section&id=3.6.3%20Capital%20Commitments) Capital commitments for property, plant, and equipment decreased to **RMB1.6 million** from RMB2.1 million at year-end Capital Commitments (Period-end) | Item | 2025/06/30 (RMB'000) | 2024/12/31 (RMB'000) | | :--- | :--- | :--- | | Property, plant and equipment | 1,584 | 2,093 | [Operating Review and Market Outlook](index=22&type=section&id=IV.%20Operating%20Review%20and%20Market%20Outlook) [Market Review](index=22&type=section&id=4.1%20Market%20Review) Global pharma faces challenges, but advanced therapies, cell/gene therapy, mRNA, and AI grow; China's innovative drug market thrives with policy support - The global pharmaceutical, life sciences, and biotechnology industries face economic pressures and tariff uncertainties, but strategic investments are recovering in specific areas, especially in **advanced therapy digital infrastructure**[46](index=46&type=chunk) - **Cell and gene therapy** and **mRNA vaccine technology** remain core to industry growth, with **AI and machine learning applications** flourishing[46](index=46&type=chunk) - China's innovative drug licensing transactions continue to grow, with strong national policy support accelerating industry transformation and upgrading[46](index=46&type=chunk) - The **GLP-1 peptide drug market** has significantly grown, synthetic biology shows broad application prospects in healthcare, and the **radiopharmaceutical sector** is accelerating with domestic breakthroughs[48](index=48&type=chunk) [Business Review](index=23&type=section&id=4.2%20Business%20Review) Despite 5.6% revenue decline, order intake grew 15.0%, net profit and operating cash flow increased, driven by strategic repositioning and global expansion - During the review period, the Group's revenue decreased by approximately **5.6%**, but order intake increased by approximately **15.0%**, with significant increases in net profit after tax and cash flows from operations[49](index=49&type=chunk) - Business positioning shifted from 'Pharmaceutical Engineering Solution Expert' to **'Leading Technology Serving Life Sciences'**, expanding the scope of business[49](index=49&type=chunk) - Signed a strategic cooperation agreement with Wenzhou Gaoge Machinery Technology Co., Ltd., establishing the **'Austar Gaoge' joint brand** to focus on R&D and production of core equipment like blister packaging machines[50](index=50&type=chunk) - Deepened expertise in complex API production processes (peptides and oligonucleotides), developing proprietary solutions such as **continuous flow reactors** and **high-pressure chromatography columns**[51](index=51&type=chunk) - Significant milestones achieved in global expansion strategy, with a substantial increase in international business inquiries and order intake[51](index=51&type=chunk) [Order Intake and Uncompleted Contracts](index=25&type=section&id=4.3%20Order%20Intake%20and%20Uncompleted%20Contracts) Total order intake grew **15.0%** to **RMB1.04 billion**, driven by Integrated Process and Packaging Equipment Systems; uncompleted contracts totaled RMB1.33 billion [Order Intake](index=25&type=section&id=4.3.1%20Order%20Intake) Total order intake grew **15.0%** to **RMB1.04 billion**, with Integrated Process and Packaging Systems up **32.3%** and Life Science Equipment down **8.4%** Order Intake by Business Segment (For the six months ended June 30) | Business Segment | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Integrated Process and Packaging Equipment Systems | 569,608 | 430,657 | +32.3% | | Consulting, Digitalization, and Construction | 302,710 | 290,495 | +4.2% | | Life Science Equipment and Consumables | 169,487 | 184,947 | -8.4% | | Total | 1,041,805 | 906,099 | +15.0% | - Order intake growth for Integrated Process and Packaging Equipment Systems benefited from a **moderate market rebound** and **increased capital expenditure by pharmaceutical companies**[56](index=56&type=chunk) - Order intake growth for Consulting, Digitalization, and Construction was primarily driven by **improved pharmaceutical regulatory standards** and demand for **energy-saving and efficiency-enhancing technologies**[58](index=58&type=chunk) - The decline in order intake for Life Science Equipment and Consumables was mainly affected by **Sino-US trade friction** and **domestic clients' cost reduction pressures**[59](index=59&type=chunk) [Uncompleted Contracts](index=27&type=section&id=4.3.2%20Uncompleted%20Contracts) Total uncompleted contracts valued **RMB1.33 billion** (1,614 contracts), with Integrated Process and Packaging Equipment Systems accounting for **53.4%** Uncompleted Contracts by Business Segment (Period-end) | Business Segment | Number of Contracts | Value at Period-end (RMB'000) | | :--- | :--- | :--- | | Integrated Process and Packaging Equipment Systems | 572 | 708,632 | | Consulting, Digitalization, and Construction | 912 | 591,199 | | Life Science Equipment and Consumables | 130 | 27,812 | | Total | 1,614 | 1,327,643 | [Production, Execution, and Organization](index=28&type=section&id=4.4%20Production,%20Execution,%20and%20Organization) Austar operates five global manufacturing centers, enhancing production; Project Execution Center delivered over 130 projects using AI/IoT for smart manufacturing - Austar has **five manufacturing centers globally**, including AUSTAR UK, Shanghai, Shijiazhuang, Shijiazhuang Consumables Manufacturing Center, and the Cape Europe joint venture in France[61](index=61&type=chunk) - The Project Execution Center has executed over **220 projects** and delivered over **130 projects**, covering various fields such as traditional Chinese medicine injections, biopharmaceuticals, vaccines, and medical devices[62](index=62&type=chunk) - The Project Execution Center employs informatized project management, combining **AI and IoT technologies** to achieve smart production and sterile validation services[62](index=62&type=chunk)[63](index=63&type=chunk) [Sales and Marketing](index=29&type=section&id=4.5%20Sales%20and%20Marketing) Internal sales model in China, global expansion with increased orders in India/Southeast Asia, active exhibition participation, and new 'Austar Gaoge' brand launch - The internal sales collaboration model aims to provide tailored solutions to clients, supported by a **business intelligence information system**[64](index=64&type=chunk) - Under the global expansion strategy, European and Southeast Asian teams have been established, achieving **significant increases in order intake** in India and Southeast Asia[65](index=65&type=chunk) - Actively participated in international exhibitions (e.g., India Pharma Tech & Lab Tech Expo, CPHI & PMEC China) and published company news via social media, with a **23% year-on-year increase in click-through rates**[65](index=65&type=chunk)[66](index=66&type=chunk) - Launched the secondary packaging solution business brand **'Austar Gaoge'**, focusing on providing sustainable, efficient, and innovative secondary packaging solutions for pharmaceutical, food, and daily chemical industries[66](index=66&type=chunk) [Research and Development and Technological Innovation](index=31&type=section&id=4.6%20Research%20and%20Development%20and%20Technological%20Innovation) Continuous R&D investment resulted in **420 patents** (12 new), launching innovative products like ContiPI continuous granulation and pre-filled syringe lines - As of June 30, 2025, the Group holds **420 patents** and has obtained **12 new registered patents**[67](index=67&type=chunk) - Officially launched the **ContiPI continuous wet granulation and drying system**, combined with ContiFlex10, establishing an integrated process service platform to support continuous pharmaceutical manufacturing[67](index=67&type=chunk) - Successfully developed a **pre-filled syringe system filling line** with high-precision sterile filling capabilities, and launched a more compact and adaptable **visual inspection machine production line**[68](index=68&type=chunk) - Independently developed a series of **sterile contamination control consumables** (e.g., sterile disposable gloves, anti-bacterial goggles) and **sterile transfer and containment devices** (e.g., autoclavable disposable Beta bags) to comply with new EU GMP regulations[69](index=69&type=chunk) [Outlook](index=32&type=section&id=4.7%20Outlook) Group aims for global turnkey solutions via segment restructuring, focusing on global expansion, 'product-in-project' model, own-brand building, and portfolio expansion [Outlook for Consulting, Digitalization, and Construction Business](index=32&type=section&id=4.7.1%20Outlook%20for%20Consulting,%20Digitalization,%20and%20Construction%20Business) This segment will offer comprehensive solutions to life sciences, targeting multinational pharma in China, expanding globally, and developing digital consulting - This business segment will provide global clients with **forward-looking and flexible turnkey projects** covering the entire lifecycle[71](index=71&type=chunk) - Focusing on **multinational pharmaceutical companies in China**, leveraging engineering project experience in China to enter global markets[72](index=72&type=chunk) - Actively developing **digitalization consulting and system implementation services** to meet client demands for reduced operating costs[72](index=72&type=chunk) [Outlook for Integrated Process and Packaging Equipment Systems Business](index=33&type=section&id=4.7.2%20Outlook%20for%20Integrated%20Process%20and%20Packaging%20Equipment%20Systems%20Business) Segment to shift to in-house R&D and 'product-in-project' models, deepening expertise in advanced therapies, and entering medical aesthetics/devices - Strategic shift to **'product-in-project' and 'product+project' new business models**, with in-house R&D of core equipment expected to be a major future revenue source[74](index=74&type=chunk) - Deepening expertise in **peptides and oligonucleotides, antibody-drug conjugates, microneedle drug delivery systems, and GLP-1 weight-loss drugs**[74](index=74&type=chunk) - Entering related industrial fields such as **medical aesthetics and professional medical devices** to diversify and strengthen business revenue[74](index=74&type=chunk) [Outlook for Life Science Equipment and Consumables Business](index=34&type=section&id=4.7.3%20Outlook%20for%20Life%20Science%20Equipment%20and%20Consumables%20Business) Segment to build competitive own-brand products in sterile assurance and containment, leveraging European tech for localized, cost-effective solutions - Focusing on building a **sustainable and competitive own-brand product system**, specializing in key application areas such as **sterile assurance, aseptic transfer, containment isolation technology, and quality assurance**[75](index=75&type=chunk) - Leveraging technology acquired from European partner **CAPE Europe** to develop proprietary products and services, addressing changes in regulatory requirements[75](index=75&type=chunk) - Newly constructed consumables production facilities have progressively launched products, aligning with the trend of **localized production in the Chinese market**[76](index=76&type=chunk) [Product Portfolio Expansion Strategy](index=35&type=section&id=4.7.4%20Product%20Portfolio%20Expansion%20Strategy) Business model shifting to 'product and project' dominant, investing in R&D, market integration, and establishing new brands like C-True and Austar Gaoge - Business model adjusted to a **'product and project' dominant approach** to capture more business opportunities[77](index=77&type=chunk) - Expanding product portfolio through **proprietary R&D and market integration**, including **C-True visual inspection, Austar Gaoge secondary packaging, and biopharmaceutical disposable products**[77](index=77&type=chunk) [Global Expansion Strategy](index=35&type=section&id=4.7.5%20Global%20Expansion%20Strategy) To counter China's competition, the Group will advance global expansion, aiming for international orders to exceed China's, focusing on key regions - Continuing to advance the global expansion strategy, aiming for **international market order intake to surpass that of the Chinese market**[78](index=78&type=chunk) - Focusing on key regions and countries such as the **Middle East, North Africa, Southeast Asia, Europe, South America, and North America**[78](index=78&type=chunk) [Financial Performance Analysis](index=36&type=section&id=V.%20Financial%20Performance%20Analysis) [Revenue Analysis](index=36&type=section&id=5.1%20Revenue%20Analysis) Total revenue decreased **5.6%** to **RMB661.9 million**, with varied segment performance and **33.3% growth** in other regions' revenue Revenue by Business Group (For the six months ended June 30) | Business Group | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Integrated Process and Packaging Equipment Systems | 318,110 | 309,273 | +2.9% | | Consulting, Digitalization, and Construction | 190,134 | 216,586 | -12.2% | | Life Science Equipment and Consumables | 153,661 | 175,060 | -12.2% | | Total | 661,905 | 700,919 | -5.6% | - Increased revenue from Integrated Process and Packaging Equipment Systems was primarily due to an **increase in uncompleted contracts at the beginning of the period**[80](index=80&type=chunk) - Decreased revenue from Consulting, Digitalization, and Construction and Life Science Equipment and Consumables was mainly due to a **reduction in uncompleted contracts and order intake at the beginning of the period**[81](index=81&type=chunk)[82](index=82&type=chunk) Revenue by Geographical Region (For the six months ended June 30) | Region | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 596,869 | 652,139 | -8.5% | | Other Regions | 65,036 | 48,780 | +33.3% | | Total | 661,905 | 700,919 | -5.6% | [Cost of Sales, Gross Profit, and Gross Profit Margin Analysis](index=38&type=section&id=5.2%20Cost%20of%20Sales,%20Gross%20Profit,%20and%20Gross%20Profit%20Margin%20Analysis) Cost of sales decreased 5.9%, total gross profit declined 4.3%, but overall gross margin rose to **21.0%** due to improved segment margins - Cost of sales decreased by **5.9%** to **RMB522.8 million**, consistent with the revenue decline[86](index=86&type=chunk) Gross Profit and Gross Profit Margin by Business Group (For the six months ended June 30) | Business Group | 2025 Gross Profit (RMB'000) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB'000) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Integrated Process and Packaging Equipment Systems | 34,756 | 10.9% | 42,298 | 13.7% | | Consulting, Digitalization, and Construction | 38,525 | 20.3% | 37,359 | 17.2% | | Life Science Equipment and Consumables | 65,862 | 42.9% | 65,760 | 37.6% | | Total | 139,143 | 21.0% | 145,417 | 20.7% | - Gross profit margin for Integrated Process and Packaging Equipment Systems decreased, mainly due to **intensified market competition** and **client price pressure**[90](index=90&type=chunk) - Gross profit margin for Consulting, Digitalization, and Construction increased, primarily due to **product standardization, optimized business structure, and strengthened supply chain management**[91](index=91&type=chunk) - Gross profit margin for Life Science Equipment and Consumables increased, mainly benefiting from **product portfolio optimization** to enhance the proportion of high-margin consumables revenue and **economies of scale** from increased sales of self-produced products[93](index=93&type=chunk) [Operating Expense Analysis](index=40&type=section&id=5.3%20Operating%20Expense%20Analysis) Selling and marketing expenses rose 13.7%, while administrative and R&D expenses decreased by 19.2% and 29.8% respectively; other income declined 26.3% - Selling and marketing expenses increased by **13.7%** to **RMB72.7 million**, primarily due to increased staff costs for sales and marketing personnel[94](index=94&type=chunk) - Administrative expenses decreased by **19.2%** to **RMB41.4 million**, mainly due to reduced staff costs for administrative personnel, depreciation, and technical service fees[95](index=95&type=chunk) - Research and development expenses decreased by **29.8%** to **RMB16.5 million**, primarily due to reduced staff costs for R&D personnel and raw material expenses[96](index=96&type=chunk) - Other income decreased by **26.3%** to **RMB6.5 million**, primarily due to a **reduction in subsidies granted by local government authorities in China**[97](index=97&type=chunk) [Profit Before Tax and Profit for the Period](index=41&type=section&id=5.4%20Profit%20Before%20Tax%20and%20Profit%20for%20the%20Period) Profit before tax surged **230.0%** to **RMB30.3 million**, and profit for the period grew **463.7%** to **RMB23.6 million**, driven by improved net other income and lower finance costs - Profit before income tax was approximately **RMB30.3 million**, a significant increase from **RMB9.2 million** in the prior period[101](index=101&type=chunk) - Profit for the period was approximately **RMB23.6 million**, a significant increase from **RMB4.2 million** in the prior period[103](index=103&type=chunk) - Income tax expense increased to **RMB6.7 million**, primarily due to higher profit before income tax[102](index=102&type=chunk) [Liquidity and Financial Resources](index=42&type=section&id=VI.%20Liquidity%20and%20Financial%20Resources) [Cash Flows](index=42&type=section&id=6.1%20Cash%20Flows) Net cash from operations significantly increased to **RMB39.0 million**; cash and cash equivalents totaled **RMB164.7 million** at period-end Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net cash from operating activities | 38,966 | 19,539 | | Net cash (used in) / from investing activities | (2,757) | 12,350 | | Net cash used in financing activities | (38,205) | (56,007) | | Net decrease in cash and cash equivalents | (1,996) | (24,118) | - The increase in net cash from operating activities was primarily due to **higher profit before income tax** and a **decrease in trade and other receivables**[104](index=104&type=chunk)[105](index=105&type=chunk) - Net cash used in financing activities decreased, mainly because **repayment of borrowings was partially offset by proceeds from bank borrowings**[105](index=105&type=chunk) - As of June 30, 2025, cash and cash equivalents were approximately **RMB164.7 million**, primarily denominated in RMB and USD[105](index=105&type=chunk) [Net Current Assets and Gearing Ratio](index=43&type=section&id=6.2%20Net%20Current%20Assets%20and%20Gearing%20Ratio) Net current assets increased to **RMB402.9 million**, and the gearing ratio decreased to **30.9%**, reflecting reduced financial risk - Net current assets increased by approximately **RMB39.8 million** to **RMB402.9 million**[107](index=107&type=chunk) - Total current assets decreased by approximately **RMB52.8 million**, mainly due to reductions in trade and bills receivable, prepayments and other receivables, and inventories, partially offset by an increase in contract assets[107](index=107&type=chunk)[108](index=108&type=chunk) - Total current liabilities decreased by approximately **RMB92.6 million**, primarily due to reductions in other payables, short-term borrowings, and the current portion of long-term borrowings[108](index=108&type=chunk)[110](index=110&type=chunk) - The gearing ratio decreased from **33.9%** as of December 31, 2024, to **30.9%** as of June 30, 2025[44](index=44&type=chunk) [Pledged Assets and Contingent Liabilities](index=44&type=section&id=6.3%20Pledged%20Assets%20and%20Contingent%20Liabilities) Buildings, right-of-use assets, and bank deposits are pledged; irrevocable L/C guarantee for ROTA KG recovered, reducing contingent liability - As of June 30, 2025, the Group had pledged buildings with a total carrying amount of approximately **RMB80.9 million**, right-of-use assets of **RMB46.6 million**, and pledged bank deposits of **RMB43.2 million**[109](index=109&type=chunk) - For the six months ended June 30, 2025, an irrevocable letter of credit guarantee totaling **EUR600,000** utilized by the Group for **ROTA KG** was recovered[113](index=113&type=chunk) [Other Significant Information](index=45&type=section&id=VII.%20Other%20Significant%20Information) [Dividends and Capital Structure](index=45&type=section&id=7.1%20Dividends%20and%20Capital%20Structure) No interim dividends declared; shareholders' equity approximately **RMB810.4 million** with **512,582,000 shares** issued at HKD0.01 par value - The Directors **did not declare any interim dividends** for the six months ended June 30, 2025[111](index=111&type=chunk) - As of June 30, 2025, the Group had shareholders' equity of approximately **RMB810.4 million**[112](index=112&type=chunk) - Issued share capital comprised **512,582,000 shares** with a par value of **HKD0.01** each[112](index=112&type=chunk) [Human Resources](index=45&type=section&id=7.2%20Human%20Resources) Group had **1,446 full-time employees**; total staff costs increased **2.9%** to **RMB178.0 million** due to strategic investments and comprehensive HR policies - As of June 30, 2025, the Group had **1,446 full-time employees**, a slight increase from 1,445 as of December 31, 2024[114](index=114&type=chunk) - Total staff costs were approximately **RMB178.0 million**, a **2.9% year-on-year increase**, primarily due to strategic investments in enhancing capabilities and quality of key positions[114](index=114&type=chunk) - The Group has established various **welfare programs** (e.g., basic medical insurance, unemployment insurance) and **training systems**, covering onboarding, overseas, management, professional skills, and corporate culture training[115](index=115&type=chunk) [Significant Investments, Acquisitions, and Disposals](index=46&type=section&id=7.3%20Significant%20Investments,%20Acquisitions,%20and%20Disposals) No significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures occurred during the period - The Group **did not undertake any significant investment, acquisition, or disposal of subsidiaries, associates, or joint ventures** during the review period[117](index=117&type=chunk) [Foreign Exchange Risk](index=46&type=section&id=7.4%20Foreign%20Exchange%20Risk) Operating mainly in China, the Group faces foreign exchange risk from EUR, GBP, USD, and HKD, but considers it not significant for hedging - The Group faces foreign exchange risk from currencies such as **EUR, GBP, USD, and HKD**[118](index=118&type=chunk) - The Directors consider the foreign exchange rate risk **not significant**, and therefore **no financial instruments were used to hedge the risk**[118](index=118&type=chunk) [Events After the Reporting Period](index=46&type=section&id=7.5%20Events%20After%20the%20Reporting%20Period) No significant subsequent events occurred after June 30, 2025, up to the date of this announcement - No significant subsequent events occurred after **June 30, 2025**, and up to the date of this announcement[119](index=119&type=chunk) [Corporate Governance and Compliance](index=47&type=section&id=7.6%20Corporate%20Governance%20and%20Compliance) Company adheres to Corporate Governance Code, with combined Chairman/CEO roles; Directors comply with Model Code; Audit Committee reviewed interim financials - The Company has adopted and is committed to implementing the **Corporate Governance Code** set out in Appendix C1 Part 2 of the HKEX Listing Rules[121](index=121&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by **Mr. He Guoqiang**, an arrangement the Board believes ensures consistent leadership for the Group[122](index=122&type=chunk) - All Directors have confirmed compliance with the **Model Code for Securities Transactions by Directors of Listed Issuers** during the review period[123](index=123&type=chunk) - The Audit Committee has reviewed the Group's **unaudited condensed consolidated interim financial information**, which was also reviewed by independent auditors **UHY Certified Public Accountants Limited**[125](index=125&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。 有線寬頻通訊有限公司 （於香港註冊成立的有限公司） （股份代號：1097） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 財 務 摘 要 | | | | | | | | | | | | | | （未 | 經 | 審 | | 核） | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 截 | 至 | | 六 | 月 ...

[Introduction and Regulatory Context](index=1&type=section&id=Introduction%20and%20Regulatory%20Context) [Disclaimer and Company Information](index=1&type=section&id=Disclaimer%20and%20Company%20Information) This announcement by PowerUp Technology Co. Ltd. discloses unaudited interim results for the six months ended June 30, 2025, complying with GEM Listing Rules, with the Board jointly responsible for its accuracy and completeness - PowerUp Technology Co. Ltd. (Stock Code: 8198) announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) - This announcement complies with the relevant requirements of the GEM Listing Rules of The Stock Exchange of Hong Kong Limited[2](index=2&type=chunk) - The Board of Directors includes executive directors Li Hongbin (Chairman), Huang Yibin, Xiong Jiayan, and independent non-executive directors Sun Yuqiang, Zhu Hehua, and Tang Yi[2](index=2&type=chunk) [GEM Listing Rules Context](index=3&type=section&id=GEM%20Listing%20Rules%20Context) The GEM market provides a listing platform for SMEs, which typically carry higher investment risks, requiring prudent investor evaluation; the Exchange disclaims responsibility for this report, while the Board assumes full accountability for its accuracy - The GEM market is positioned as a listing platform for small and medium-sized companies, whose securities may be subject to greater market volatility risks[5](index=5&type=chunk) - The Stock Exchange makes no representation as to the accuracy or completeness of this report and accepts no liability for it[6](index=6&type=chunk) - The company's directors jointly and individually assume full responsibility for the information in this report, confirming its accuracy, completeness, and absence of misleading or fraudulent content[7](index=7&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=4&type=section&id=Business%20Review) The Group primarily operates big data center services, money lending, and Web3.0 businesses; big data center revenue decreased by **HKD 4.7 million** to **HKD 24.9 million**, while money lending revenue increased by **HKD 0.3 million** to **HKD 1 million**, and Web3.0 remains in R&D - The Group's main businesses include big data center services, money lending, and Web3.0 businesses[8](index=8&type=chunk) [Big Data Center Services](index=4&type=section&id=Big%20Data%20Center%20Services) The Group's big data center services generated **HKD 2.2 million** from the Hong Kong center (ceased operations June 2025) and **HKD 22.7 million** from the US center (commenced December 2023), with total revenue decreasing by **HKD 4.7 million** due to reduced Hong Kong contributions and US price volatility - The Hong Kong data center, with a maximum processing capacity of approximately **1,400 Kilowatts (kW)**, ceased operations in June 2025, generating approximately **HKD 2.2 million** in revenue during the reporting period[9](index=9&type=chunk) - The US data center, with a maximum processing capacity of approximately **11 Megawatts (MW)**, commenced operations in December 2023, generating approximately **HKD 22.7 million** in revenue during the reporting period[9](index=9&type=chunk) - Total revenue from big data center services was approximately **HKD 24.9 million**, a decrease of approximately **HKD 4.7 million** compared to the same period in 2024, primarily due to reduced contributions from the Hong Kong data center and price fluctuations in the US data center[9](index=9&type=chunk) Big Data Center Services Revenue Comparison | Metric | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | Remarks | | :--- | :--- | :--- | :--- | :--- | :--- | | Big Data Center Services Revenue | 24,900 | 29,600 | (4,700) | -15.88% | Reduced contribution from Hong Kong data center and price fluctuations in US data center | | Hong Kong Data Center Revenue | 2,200 | - | - | - | Ceased operations June 2025 | | US Data Center Revenue | 22,700 | - | - | - | Commenced operations December 2023 | [Money Lending Business](index=5&type=section&id=Money%20Lending%20Business) The Group's money lending business, operated by Fortune Rich Limited, saw a **HKD 30 million** loan extended with partial repayment and **HKD 44,000** provision, while another **HKD 3 million** loan was fully repaid, contributing **HKD 1 million** in revenue - Fortune Rich Limited obtained a money lender's license in Hong Kong in January 2020[10](index=10&type=chunk) - A **HKD 30 million** loan (annual interest rate of **10%**) matured on April 2, 2024, with the borrower failing to repay in full; **HKD 2 million** in partial interest was received, and approximately **HKD 18.7 million** in principal and interest was further settled after the due date[10](index=10&type=chunk) - As of June 30, 2025, cumulative provisions of approximately **HKD 44,000** have been made for this loan[11](index=11&type=chunk) - Another **HKD 3 million** loan (annual interest rate of **10%**) was fully repaid before its due date, with interest income of approximately **HKD 100,000** recorded during the reporting period[11](index=11&type=chunk) Money Lending Business Interest Income Comparison | Metric | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Money Lending Business Revenue | 1,000 | 700 | 300 | 42.86% | | Loan Interest Income | 900 | - | - | - | | Second Loan Interest Income | 100 | - | - | - | [Web3.0 Business](index=9&type=section&id=Web3.0%20Business) The Group actively pursued R&D in blockchain, Web3.0 applications, and infrastructure platforms during the period, recruiting talent for overseas market development, product operations, and blockchain-based financial services - The Group conducted R&D activities for blockchain, Web3.0 applications, and infrastructure platforms during the reporting period[20](index=20&type=chunk) - Talent in blockchain and related fields has been recruited, covering overseas market business development, product operations, and blockchain-based financial services[20](index=20&type=chunk) [Internal Control Procedures for Money Lending Business](index=6&type=section&id=Internal%20Control%20Procedures%20for%20Money%20Lending%20Business) The Group established internal control procedures for money lending, covering credit risk assessment, approval, ongoing monitoring of recoverability, and impairment policies to ensure risk management and safeguard shareholder interests - The Group has implemented internal control procedures aimed at ensuring risk management and safeguarding the interests of the company and its shareholders[13](index=13&type=chunk) - Key internal control procedures include credit risk assessment, credit approval, and ongoing monitoring of loan recoverability and collection[13](index=13&type=chunk) [Credit Risk Assessment](index=6&type=section&id=Credit%20Risk%20Assessment) The Money Lending Monitoring Team assesses potential clients' credit risk, including credit ratings, repayment capacity, and financial standing, with the Company Secretary verifying related party relationships and independent valuers appraising collateral - The Money Lending Monitoring Team (comprising the CEO, accounting, and company secretary department personnel) is responsible for credit risk assessment[13](index=13&type=chunk) - The assessment includes the potential client's credit rating, repayment ability, financial condition, and overall credit risk, along with a review of relevant documents[13](index=13&type=chunk) - The Company Secretary's Department verifies related party relationships, and management engages independent valuers to assess collateral value[15](index=15&type=chunk) [Credit Approval](index=7&type=section&id=Credit%20Approval) The Money Lending Monitoring Team prepares initial loan recommendations based on credit risk assessments, which the accounting team independently reviews for GEM Listing Rules compliance, with final applications submitted for Board or shareholder approval - The Money Lending Monitoring Team prepares preliminary recommendations based on credit risk assessment results, determining loan principal, interest rate, and term[15](index=15&type=chunk) - The accounting team conducts an independent evaluation of the application and performs a size test to ensure compliance with GEM Listing Rules[16](index=16&type=chunk) - Loan applications successfully passing the procedures are submitted to the Board of Directors or shareholders for approval[16](index=16&type=chunk) [Ongoing Monitoring of Loan Recoverability and Collection](index=8&type=section&id=Ongoing%20Monitoring%20of%20Loan%20Recoverability%20and%20Collection) The finance department maintains individual loan sub-accounts, verified by the CFO and CEO, while management and the monitoring team quarterly review loan recoverability and collection, initiating legal action for defaults - The finance department establishes independent sub-accounts for each borrower, recording loan principal, repayment schedules, and records, which are reviewed and approved by the Head of Finance and the CEO[18](index=18&type=chunk) - Management and the Money Lending Monitoring Team quarterly review loan collection status and recoverability to mitigate credit risk[18](index=18&type=chunk) - In case of client default, an overdue notice will be issued, and legal action may be taken after seeking legal advice[18](index=18&type=chunk) [Loan Impairment Policy](index=9&type=section&id=Loan%20Impairment%20Policy) Management assesses loan impairment based on factors like significant repayment delays, legal actions, collateral value decline, and unavailable borrower financial documents, appointing independent valuers for impairment loss provisions when such factors arise - Factors considered for loan impairment include significant delays in borrower repayment, the company taking legal action, a decline in collateral value, and the inability to obtain borrower financial documents[19](index=19&type=chunk)[21](index=21&type=chunk) - Upon identifying impairment factors, an independent valuer will be appointed to assess the provision for impairment losses on loans and interest receivable[19](index=19&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。 上 海 復 星 醫 藥（ 集 團 ）股 份 有 限 公 司 Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* （ 於中華人民共和國註冊成立的股份有限公司） （股份代號：02196） 截至2025年6月30日止六個月之中期業績公告 本公司董事會欣然公佈本集團截至2025年6月30日止六個月之未經審核中期業績。 – 1 – 財務摘要 中期簡明綜合損益表 截至2025年6月30日止六個月 | | | 截至6月30日止六個月 | | | --- | --- | --- | --- | | | | 2025年 | 2024年 | | | | 人民幣千元 | 人民幣千元 | | | 附註 | （未經審核） | （ 未經審核） | | 收入 | 3 | 19,425,533 | 20,383,158 | | 銷售成本 | | (10,123,465) | (10,463 ...

香港交易及結算所有限公司及香港聯合交易所有限公司（「香港聯交所」）對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內 容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Zhejiang Shibao Company Limited* 浙 江 世 寶 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限責任公司） （股份代號： 1057 ） | | 2025 年 | 1-6 | 月 | | 2024 年 1-6 月 | | | 同比增減 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 人民幣 | | | | 人民幣 | | | | | | (未經審計) | | | | (未經審計) | | | | | 營業收入 | 1,524,160,127.15 | | | | 1,126,360,975.88 | | | 35.32% | | 歸屬於上市公司股東的淨利潤 | 93,034,442.81 | | | | 66,887,755.99 | | | 39.09% | | 歸屬 ...

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布的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示，概不對因本公布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。 （股份代號：41） 2025 年中期業績公布 鷹君集團有限公司（「本公司）」）董事會（「董事會」）宣布，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之綜合財務業績如下： | | 截至 6 月 | 30 | 日止六個月 | | | --- | --- | --- | --- | --- | | | 年 2025 | | 年 2024 | | | | 百萬港元 | | 百萬港元 | 變動 | | 收益表之主要財務數據 | | | | | | 1 按核心業務計 | | | | | | 核心業務收益 | 4,000.0 | | 3,791.0 | 5.5% | | 權益持有人應佔除稅後核心溢利 | 597.3 | | 735.8 | -18.8% | | 權益持有人應佔除稅後核心溢利（每股） | 0.80 港元 | | 0.98 港元 | | | 2 按法定會計準則計 | | ...