Report Overview [Financial Highlights](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, Jinli Group's revenue slightly increased by 1.05% to HKD 159.2 million, but loss attributable to equity holders expanded to HKD 3.16 million, primarily due to a 5.07 percentage point decrease in gross profit margin to 19.60% | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 159,200 | 157,550 | +1.05% | | Loss attributable to equity holders | (3,160) | (2,870) | +10.10% (Loss widened) | | Gross profit margin | 19.60% | 24.67% | -5.07 percentage points | | Basic loss per share (HK cents) | (11.37) | (10.61) | -7.16% (Loss widened) | - The decrease in gross profit margin was primarily due to increased raw material costs from global commodity price fluctuations and higher production costs from the appreciation of RMB against HKD [2](index=2&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 [2](index=2&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, Group revenue slightly increased to HKD 159.2 million, but cost of sales significantly rose, leading to a 19.69% year-on-year decrease in gross profit, with loss for the period expanding to HKD 3.255 million. | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 159,200 | 157,548 | +1.05% | | Cost of sales | (127,992) | (118,687) | +7.84% | | Gross profit | 31,208 | 38,861 | -19.69% | | Other income | 3,352 | 2,066 | +62.25% | | Other gains (losses) — net | 3,724 | (3,035) | N/A (Turned from loss to gain) | | Selling expenses | (9,607) | (9,564) | +0.45% | | General and administrative expenses | (26,958) | (25,161) | +7.14% | | Finance costs | (5,365) | (6,298) | -14.81% | | Loss before income tax | (3,646) | (3,131) | +16.45% (Loss widened) | | Income tax credit | 391 | 266 | +46.99% | | Loss for the period | (3,255) | (2,865) | +13.61% (Loss widened) | | Loss for the period attributable to equity holders of the Company | (3,155) | (2,865) | +10.12% (Loss widened) | - Total comprehensive loss for the period narrowed from HKD 4.097 million in H1 2024 to HKD 1.369 million in H1 2025, primarily due to exchange differences [6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets slightly increased, non-current assets rose, and net current liabilities narrowed, with total equity increasing by 1.16% to HKD 290.2 million. | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 498,853 | 490,802 | +1.64% | | Current assets | 176,249 | 165,263 | +6.65% | | Current liabilities | 319,449 | 346,930 | -7.89% | | Net current liabilities | (143,200) | (181,667) | -21.28% (Narrowed) | | Net assets | 290,195 | 286,849 | +1.16% | | Total equity | 290,195 | 286,849 | +1.16% | - Trade and bills receivables increased by **33.79%** from HKD 44.391 million as of December 31, 2024, to HKD 59.384 million as of June 30, 2025 [7](index=7&type=chunk) - Cash and bank balances decreased by **57.59%** from HKD 31.493 million as of December 31, 2024, to HKD 13.353 million as of June 30, 2025 [7](index=7&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, the Group's operating activities shifted from net cash inflow to a net cash outflow of HKD 6.021 million, with cash and cash equivalents significantly decreasing by 42.87% to HKD 13.353 million. | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (6,021) | 21,761 | Shifted from inflow to outflow | | Net cash used in investing activities | (7,741) | (5,898) | Outflow increased | | Net cash used in financing activities | (2,115) | (15,326) | Outflow decreased | | Net (decrease) increase in cash and cash equivalents | (15,877) | 537 | Shifted from increase to decrease | | Cash and cash equivalents at end of period | 13,353 | 23,374 | -42.87% | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, the Company's share capital increased by HKD 1.08 million due to new share issuance, and share premium rose by HKD 3.655 million, leading to a slight increase in total equity attributable to equity holders. | Metric | June 30, 2025 (HKD thousands) | January 1, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Share capital | 6,480 | 5,400 | +1,080 | | Share premium | 144,908 | 141,253 | +3,655 | | Exchange fluctuation reserve | (4,192) | (4,140) | Slightly improved | | Retained profits | 55,369 | 64,896 | -9,527 | | Total equity attributable to equity holders of the Company | 289,995 | 294,839 | -1.64% | - Share issuance during the period resulted in an increase of **HKD 1,080 thousand** in share capital and **HKD 3,655 thousand** in share premium [11](index=11&type=chunk) Notes to the Financial Statements [General Information](index=9&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Jinli Group Holdings Limited, incorporated in the Cayman Islands, primarily manufactures and sells various batteries (disposable, rechargeable, and related products) to China, Hong Kong, and international markets, actively developing mercury-free, cadmium-free, and lead-free batteries. - The Company was listed on GEM of the Stock Exchange of Hong Kong on June 5, 2015, and transferred to the Main Board on November 10, 2017 [12](index=12&type=chunk) - Principal activities include manufacturing and selling "Jinli" brand and OEM batteries, categorized into disposable batteries (cylindrical, miniature button cells) and rechargeable batteries and other related products (chargers, battery packs, electric fans) [12](index=12&type=chunk) - The Group actively responds to the global trend towards batteries free of harmful substances, having developed the "Origin.Nature" series of mercury-free, cadmium-free, and lead-free batteries [13](index=13&type=chunk) [Basis of Preparation of Financial Statements](index=10&type=section&id=2.%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules on a going concern basis, which the Board deems appropriate despite a net loss and net current liabilities, citing unused bank facilities and borrowing renewal capabilities. - The financial statements are prepared on a going concern basis, despite a net loss of approximately **HKD 3.3 million** and net current liabilities of **HKD 143.20 million** for the six months ended June 30, 2025 [15](index=15&type=chunk) - The Board considers the going concern basis appropriate due to **HKD 21.77 million** in unutilized bank facilities, successful renewal of approximately **HKD 39.30 million** in bank borrowings, expected future borrowing renewals, and potential adjustments to investment strategies to enhance cash flow [15](index=15&type=chunk) [Significant Accounting Estimates and Judgements](index=12&type=section&id=3.%20%E9%87%8D%E5%A4%A7%E6%9C%83%E8%A8%88%E4%BC%B0%E8%A8%88%E5%8F%8A%E5%88%A4%E6%96%B7) The significant management judgements and sources of estimation uncertainty applied in preparing the interim financial statements are consistent with those used for the consolidated financial statements for the year ended December 31, 2024. - The significant accounting estimates and judgements used in preparing the interim financial statements are the same as those applied in the 2024 annual consolidated financial statements [17](index=17&type=chunk) [Segment Information](index=12&type=section&id=4.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's reportable segments are categorized by product type: cylindrical batteries, miniature button cells, and rechargeable batteries and other related products, with cylindrical battery revenue increasing but overall gross profit decreasing by 19.69% in H1 2025. | Segment | H1 2025 Revenue (HKD thousands) | H1 2024 Revenue (HKD thousands) | Change (%) | H1 2025 Gross Profit (HKD thousands) | H1 2024 Gross Profit (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cylindrical batteries | 111,144 | 105,891 | +4.96% | 11,273 | 15,347 | -26.54% | | Miniature button cells | 46,490 | 49,606 | -6.30% | 19,215 | 22,799 | -15.72% | | Rechargeable batteries and other related products | 1,566 | 2,051 | -23.65% | 720 | 715 | +0.70% | | **Total** | **159,200** | **157,548** | **+1.05%** | **31,208** | **38,861** | **-19.69%** | - The increase in sales revenue from cylindrical batteries was mainly due to increased sales in China and the Americas [19](index=19&type=chunk) - The decrease in sales revenue from miniature button cells and rechargeable batteries and other related products was mainly due to decreased sales in the Americas [19](index=19&type=chunk) [Revenue](index=13&type=section&id=5.%20%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's total revenue slightly increased by 1.05%, driven by significant growth in China and North America, while South America and Eastern Europe experienced declines. | Region | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 13,954 | 13,242 | +5.38% | | Asia (excluding China and Hong Kong) | 29,383 | 31,350 | -6.30% | | Australia | 4,464 | 4,325 | +3.21% | | China | 46,850 | 44,471 | +5.35% | | Europe (excluding Eastern Europe) | 31,305 | 30,980 | +1.05% | | Eastern Europe | 9,879 | 13,058 | -24.35% | | Middle East | 321 | 275 | +16.73% | | North America | 21,167 | 15,017 | +40.95% | | South America | 1,864 | 4,830 | -61.41% | | Africa | 13 | — | N/A | | **Total** | **159,200** | **157,548** | **+1.05%** | [Loss Before Income Tax](index=13&type=section&id=6.%20%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, the Group's loss before income tax expanded to HKD 3.646 million, with total finance costs decreasing by 14.81% due to lower bank loan interest, while depreciation of property, plant and equipment and inventory costs increased. | Item | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank loans | 3,772 | 5,285 | -28.62% | | Interest on import loans | 1,445 | 865 | +67.05% | | Interest on lease liabilities | 80 | 125 | -35.99% | | Interest on bank overdrafts | 68 | 23 | +195.65% | | **Total interest expenses** | **5,365** | **6,298** | **-14.81%** | | Depreciation of property, plant and equipment | 7,325 | 6,106 | +19.96% | | Depreciation of right-of-use assets | 1,650 | 1,891 | -12.74% | | Cost of inventories recognized as expense | 127,992 | 118,687 | +7.84% | [Income Tax Credit](index=14&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D) For the six months ended June 30, 2025, the Group recorded an income tax credit of HKD 391 thousand, with increased Hong Kong profits tax provision, a shift from credit to provision for PRC corporate income tax, and a significant increase in deferred tax credit. | Item | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Provision for Hong Kong profits tax for the period | 850 | 447 | +90.16% | | Provision for PRC corporate income tax for the period | 292 | (653) | Shifted from credit to provision | | Deferred tax | (1,533) | (60) | Credit significantly increased | | **Income tax credit** | **(391)** | **(266)** | Credit increased | - Hong Kong subsidiaries are subject to a two-tiered profits tax regime, with the first **HKD 2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%** [25](index=25&type=chunk) - Jiangmen Jinli Power Products Co., Ltd. and Dongguan Shengli Battery Industrial Co., Ltd., as High and New Technology Enterprises, enjoy a preferential corporate income tax rate of **15%** [25](index=25&type=chunk) [Loss Per Share](index=15&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, basic loss per share was 11.37 HK cents, widening from 10.61 HK cents (restated) in the prior year, with diluted loss per share not applicable due to the absence of dilutive potential ordinary shares. | Metric | H1 2025 | H1 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Loss for the period attributable to equity holders of the Company (HKD thousands) | (3,155) | (2,865) | Loss widened | | Weighted average number of ordinary shares for basic loss per share (thousands) | 27,746 | 27,000 | Increased | | Basic loss per share (HK cents) | 11.37 | 10.61 | Loss widened | - The weighted average number of ordinary shares used for calculating basic loss per share has been adjusted to reflect the effects of share consolidation and share issuance [27](index=27&type=chunk) [Dividends](index=15&type=section&id=9.%20%E8%82%A1%E6%81%AF) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year. - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 [28](index=28&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=10.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group acquired approximately HKD 2.09 million in plant and machinery, a significant 68.24% decrease from the prior year, yet still aimed at expanding capacity and enhancing production efficiency. | Item | H1 2025 (HKD millions) | H1 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | Acquisition of plant and machinery | 2.09 | 6.58 | -68.24% | - The acquisition of plant and machinery aims to expand production capacity and enhance production efficiency [29](index=29&type=chunk) [Trade and Bills Receivables](index=16&type=section&id=11.%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, trade and bills receivables totaled HKD 59.384 million, a 33.79% increase from year-end 2024, with receivables aged 0-30 days showing an 87.29% increase, and management assessing credit risk as low. | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 30 days | 37,131 | 19,825 | +87.29% | | 31 to 60 days | 12,911 | 17,394 | -25.77% | | 61 to 90 days | 5,549 | 4,098 | +35.41% | | 91 to 120 days | 2,179 | 1,246 | +74.88% | | Over 120 days | 1,614 | 1,828 | -11.71% | | **Total** | **59,384** | **44,391** | **+33.79%** | - The Group generally grants credit periods of **30 to 120 days** to customers with stable relationships and regularly reviews overdue balances [30](index=30&type=chunk) - Management believes there is no significant credit risk inherent in the outstanding balances of receivables, indicating low credit risk [31](index=31&type=chunk) [Trade Payables](index=17&type=section&id=12.%20%E8%B2%A3%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables totaled HKD 148.982 million, a 14.61% increase from year-end 2024, with significant increases in payables aged 31-90 days and over 180 days. | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 30 days | 38,851 | 37,016 | +4.96% | | 31 to 90 days | 42,670 | 29,943 | +42.51% | | 91 to 180 days | 40,309 | 43,784 | -7.94% | | Over 180 days | 27,152 | 19,251 | +41.04% | | **Total** | **148,982** | **129,994** | **+14.61%** | [Related Party Transactions](index=17&type=section&id=13.%20%E9%97%9C%E9%80%A3%E6%96%B9%E4%BA%A4%E6%98%93) For the six months ended June 30, 2025, total key management personnel compensation was HKD 7.790 million, an increase of 13.0% from the prior year, primarily driven by growth in salaries, allowances, and discretionary bonuses. | Item | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Salaries, allowances and other benefits in kind | 6,737 | 5,954 | +13.15% | | Discretionary bonuses | 987 | 872 | +13.19% | | Contributions to defined contribution plans | 66 | 69 | -4.35% | | **Total** | **7,790** | **6,895** | **+13.00%** | [Share Capital](index=18&type=section&id=14.%20%E8%82%A1%E6%9C%AC) During the period, the Company's share capital changed due to a share consolidation (20 shares into 1) and the issuance of 5,400,000 subscription shares to an independent third party, increasing the total nominal value by HKD 1,080,000 and the enlarged issued share capital by approximately 16.67%. - The Company effected a share consolidation on May 9, 2025, consolidating every **20 shares** of HKD 0.01 each into **1 consolidated share** of HKD 0.2 each [35](index=35&type=chunk) - A subscription of **5,400,000 subscription shares** to an independent third party was completed on June 5, 2025, raising approximately **HKD 4.86 million** (before expenses) [35](index=35&type=chunk) - Following the issuance of subscription shares, the Company's issued share capital increased to **32,400,000 shares**, with the subscription shares representing approximately **16.67%** of the enlarged issued share capital [35](index=35&type=chunk) Management Discussion and Analysis [Business Review](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%80) Jinli Group primarily manufactures and sells batteries, with cylindrical battery sales increasing but overall gross profit margin declining due to rising raw material costs and RMB appreciation, leading to an expanded loss attributable to equity holders, while the Group actively develops new batteries for healthcare and new energy markets. - Cylindrical battery sales revenue increased by approximately **4.96%** year-on-year, mainly due to increased sales in China and the Americas [38](index=38&type=chunk) - Miniature button cell and rechargeable battery and other related product sales revenue decreased by approximately **6.97%** year-on-year, mainly due to decreased sales in the Americas [38](index=38&type=chunk) | Metric | H1 2025 (HKD millions) | H1 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 31.21 | 38.86 | -19.69% | | Gross profit margin | 19.60% | 24.67% | -5.07 percentage points | | Loss attributable to equity holders | 3.16 | 2.87 | +10.10% (Loss widened) | - The decrease in gross profit margin was primarily due to increased raw material costs from global commodity price fluctuations and higher production costs from the appreciation of RMB against HKD [39](index=39&type=chunk) - The Group is allocating resources to develop new batteries for the healthcare and medical facilities market and accelerating the launch of products for medical devices, remote medical monitoring, energy storage systems, and other new energy systems to enhance financial performance [41](index=41&type=chunk) [Financial Review](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, revenue slightly increased by 1.05% to HKD 159.2 million, driven by restocking demand in China and the Americas, but gross profit decreased by 19.69% due to rising costs, leading to a 10.10% expansion in loss attributable to equity holders to HKD 3.16 million. - The increase in revenue was mainly due to customers resuming more orders for restocking, leading to increased sales in China and the Americas [42](index=42&type=chunk) - The decrease in gross profit was mainly due to increased raw material costs and production costs offsetting the revenue growth [43](index=43&type=chunk) | Item | H1 2025 (HKD millions) | H1 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 9.61 | 9.56 | +0.45% | | General and administrative expenses | 26.96 | 25.16 | +7.15% | - The increase in general and administrative expenses was primarily due to increased staff salaries and professional expenses during the period [44](index=44&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's total borrowings were approximately HKD 202.63 million, primarily denominated in HKD and RMB at floating interest rates, with the gearing ratio slightly rising to 0.57 and cash and cash equivalents decreasing to HKD 13.35 million. | Borrowing Term | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 year | 143,521 | 186,805 | -23.17% | | Over 1 year but within 2 years | 6,202 | 9,647 | -35.71% | | Over 2 years but within 5 years | 52,539 | 5,905 | +789.74% | | Over 5 years | 369 | — | N/A | | **Total** | **202,631** | **202,357** | **+0.14%** | - As of June 30, 2025, the Group's gearing ratio (total liabilities divided by total assets) was approximately **0.57**, slightly higher than **0.56** at year-end 2024 [48](index=48&type=chunk) - Cash and cash equivalents decreased from **HKD 27.36 million** at year-end 2024 to **HKD 13.35 million** as of June 30, 2025 [48](index=48&type=chunk) [Capital Structure](index=23&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) During the period, the Company's capital structure changed due to a share consolidation and subscription, leading to an increase in issued share capital and a slight increase in total equity to approximately HKD 290.2 million as of June 30, 2025. - Capital structure changes included a share consolidation (every **20 shares** consolidated into **1 share**) and the issuance of **5,400,000 shares** to an independent investor [49](index=49&type=chunk) - As of June 30, 2025, the Company's total equity was approximately **HKD 290.20 million**, a slight increase from **HKD 286.85 million** at year-end 2024 [49](index=49&type=chunk) [Gearing Ratio](index=24&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio (total debt as a percentage of total equity) was approximately 0.78, a slight decrease from 0.80 at year-end 2024. | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing ratio | 0.78 | 0.80 | -0.02 | [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) As of June 30, 2025, the Group's bank borrowing facilities were primarily secured by property, plant and machinery, investment properties, prepaid lease payments for land, pledged deposits, and pledged time deposits, with a carrying value of approximately HKD 116.48 million, a decrease from year-end 2024. - As of June 30, 2025, the carrying value of pledged assets was approximately **HKD 116.48 million**, a decrease from **HKD 132.39 million** at year-end 2024 [51](index=51&type=chunk) [Contingent Liabilities](index=24&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities. - As of June 30, 2025, the Group had no significant contingent liabilities [52](index=52&type=chunk) [Material Investments Held](index=24&type=section&id=%E6%89%80%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group held investment properties in Hong Kong with a fair value of approximately HKD 87.00 million, representing about 12.89% of total assets, generating HKD 1.05 million in rental income for the period, as part of a strategy to expand fixed assets for stable returns. - The Group holds investment properties in Hong Kong, including Units 20B and 20D, Tai Ping Industrial Centre, and a shop at Cheong Wan Centre [53](index=53&type=chunk) | Metric | June 30, 2025 | | :--- | :--- | | Fair value of investment properties | HKD 87.00 million | | Percentage of total assets | 12.89% | | Rental income for the period | HKD 1.05 million | - The investment strategy aims to expand the fixed asset base to achieve positive and stable returns, thereby diversifying income sources [54](index=54&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=25&type=section&id=%E6%9C%89%E9%97%9C%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) During the period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures. - During the period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures [55](index=55&type=chunk) [Future Plans for Material Investments and Capital Assets](index=25&type=section&id=%E6%9C%89%E9%97%9C%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) Except as disclosed in this report, as of June 30, 2025, the Group had no future plans for material investments or capital assets. - Except as disclosed in this report, the Group had no plans for material investments or capital assets as of June 30, 2025 [56](index=56&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 400 employees, with staff costs totaling approximately HKD 23.04 million, an increase of 10.39% year-on-year, and remuneration policies are based on individual performance, experience, and market levels. | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of employees | 400 | 407 | -1.72% | | Staff costs (HKD millions) | 23.04 | 20.87 | +10.39% | - Remuneration packages are determined with reference to individual performance, work experience, and prevailing market salary levels, including basic salary, Mandatory Provident Fund, medical insurance schemes, and share options [57](index=57&type=chunk) [Principal Risks and Uncertainties](index=26&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E7%A2%BA%E5%AE%9A%E5%9B%A0%E7%B4%A0) The Group faces several principal risks, including international trade policy changes impacting global consumption and logistics costs, reliance on major customers, shifts in consumer preferences due to technological advancements and environmental awareness, and inventory risks from inaccurate sales forecasts. - Changes in US government administration and new international trade policies may lead to fluctuations in tariffs, interest rates, and international currency exchange rates, suppressing global consumer demand and increasing logistics costs [59](index=59&type=chunk) - The Group does not have long-term sales contracts with most major customers, and a reduction in purchases or termination of business relationships by key customers would adversely affect its business [59](index=59&type=chunk) - Technological advancements and environmental awareness may shift consumer demand from disposable batteries to rechargeable batteries or battery-free electronic products [59](index=59&type=chunk) - Inaccurate sales forecasts could result in manufactured products not being accepted by other customers, impacting business, operating results, and financial position [62](index=62&type=chunk) [Foreign Currency Risk](index=27&type=section&id=%E5%A4%96%E5%B9%A3%E9%A2%A8%E9%9A%AA) The Group faces transactional currency risk as its primary functional currencies are RMB and HKD, with overseas sales mainly denominated in USD, and fluctuations in RMB against HKD and other currencies, as well as JPY against USD, pose risks, which the Group mitigates through spot foreign currency transactions or forward contracts. - The Group's primary functional currencies are RMB and HKD, with overseas sales revenue mainly denominated in USD, exposing it to exchange rate fluctuation risks [61](index=61&type=chunk) - Fluctuations in the value of RMB against HKD and other currencies are influenced by China's political and economic conditions [62](index=62&type=chunk) - The Group has entered into forward contracts valued at approximately **JPY 20 million** to hedge payments denominated in JPY and due within the year [63](index=63&type=chunk) [Subscription Shares and Use of Proceeds](index=28&type=section&id=%E8%AA%8D%E8%B3%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The Company completed the issuance of 5,400,000 subscription shares to an independent third party on June 5, 2025, raising net proceeds of approximately HKD 4.74 million at a discount to market price, which were fully utilized for bank loan repayment (HKD 4.2 million) and general working capital (HKD 0.5 million). - The Company issued **5,400,000 subscription shares** at a subscription price of **HKD 0.90 per share**, raising net proceeds of approximately **HKD 4.74 million** [64](index=64&type=chunk)[65](index=65&type=chunk) | Use of Proceeds | Planned Use (HKD millions) | Actual Use (HKD millions) | | :--- | :--- | :--- | | Repayment of bank loans | 4.2 | 4.2 | | General working capital | 0.5 | 0.5 | | **Total** | **4.7** | **4.7** | - The subscription price represented a discount of approximately **11.8%** to the closing price on the date of the subscription agreement and approximately **9.3%** to the average closing price of the preceding five days [64](index=64&type=chunk) Other Information [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Mr. Chu King Ting, Chairman and Executive Director, held 42.15% of the Company's shares through a controlled corporation, while Ms. Chu Shuk Ching, Executive Director and Chief Executive Officer, held a combined 5.64% through a controlled corporation and beneficial ownership. | Name | Nature of Interest | Total Number of Shares Held (Long Position) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Chu King Ting (Chairman and Executive Director) | Interest in controlled corporation | 13,657,500 shares | 42.15% | | Chu Shuk Ching (Executive Director and Chief Executive Officer) | Interest in controlled corporation | 1,600,000 shares | 4.94% | | | Beneficial owner | 228,000 shares | 0.70% | [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=31&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Golden Villa Ltd. (wholly owned by Mr. Chu King Ting) held 42.15% of the shares, with Ms. Wu Yuk Ling (Mr. Chu King Ting's spouse) deemed to have the same interest, and Lofty Islet Holdings Limited (wholly owned by Mr. Yeung Ho Po) held 16.67% of the shares. | Name / Company Name | Nature of Interest | Total Number of Shares Held (Long Position) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Golden Villa Ltd. | Beneficial owner | 13,657,500 shares | 42.15% | | Ms. Wu Yuk Ling | Interest of spouse | 13,657,500 shares | 42.15% | | Triumph Treasure | Beneficial owner | 1,600,000 shares | 4.94% | | Lofty Islet Holdings Limited | Beneficial owner | 5,400,000 shares | 16.67% | | Mr. Yeung Ho Po | Interest in controlled corporation | 5,400,000 shares | 16.67% | [Post Balance Sheet Events](index=33&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Except as disclosed in this report, no significant events occurred after the end of the period and up to the date of this report. - Except as disclosed in this report, no significant events occurred after the end of the period and up to the date of this report [72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%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) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities. - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities [73](index=73&type=chunk) [Share Option Scheme](index=33&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company adopted a share option scheme on June 24, 2025, with an authorized limit of 3,240,000 share options, representing 10% of the issued shares, and no options have been granted, exercised, cancelled, or lapsed since its adoption. - The share option scheme was adopted by shareholders on June 24, 2025, with an authorized limit of **3,240,000 share options**, representing **10%** of the issued shares [74](index=74&type=chunk) - No share options have been granted, agreed to be granted, exercised, cancelled, or lapsed under the scheme since its adoption date and up to the date of this report [74](index=74&type=chunk) [Standard of Conduct for Securities Transactions by Directors](index=34&type=section&id=%E8%91%A3%E4%BA%8B%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 has adopted the Standard of Conduct for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance with the code during the period and up to the date of this report. - The Company has adopted the Standard of Conduct for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance [75](index=75&type=chunk) [Corporate Governance Code](index=34&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and is committed to high standards of corporate governance and transparency, with the Board believing that applicable code provisions have been complied with during the period. - The Company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and believes that applicable code provisions have been complied with during the period [76](index=76&type=chunk) [Directors' Material Interests in Contracts](index=34&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E5%90%88%E7%B4%84%E4%B8%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%AC%8A%E7%9B%8A) Except as disclosed in this report, no Director had any material interest in any contract significant to the Group's business during the period. - During the period, no Director had any material interest in any contract significant to the Group's business [77](index=77&type=chunk) [Competing Business](index=34&type=section&id=%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99) During the period, the Directors were unaware of any business or interest of the Company's Directors, controlling shareholders, and their close associates that competes or may compete with the Group's business, or any other conflicts of interest. - The Directors were unaware of any business or interest of the Company's Directors, controlling shareholders, and their close associates that competes with the Group's business [78](index=78&type=chunk) [Audit Committee](index=34&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, ensures the effectiveness of the Group's accounting and financial controls, oversees internal control systems and financial reporting processes, and has reviewed the interim results, deeming them compliant with applicable accounting standards, Listing Rules, and legal requirements. - The Audit Committee comprises three independent non-executive directors: Mr. Wong Ka Chun (Chairman), Mr. Kan Man Kim, and Ms. Tang Sze Ning [79](index=79&type=chunk) - The Audit Committee's primary responsibilities include ensuring effective accounting and financial controls, overseeing internal control systems and financial reporting processes, monitoring the integrity of financial statements, and assessing the independence of external auditors [80](index=80&type=chunk) - These interim results have not been audited by the Company's auditors but have been reviewed by the Audit Committee, which considers them to be in compliance with applicable accounting standards, the Listing Rules, and legal requirements [80](index=80&type=chunk) [Board Composition](index=35&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) As of the date of this report, the Board of Directors comprises four executive directors (Mr. Chu King Ting, Ms. Chu Shuk Ching, Mr. Tang Chi Him, Mr. Chu Ho Wah) and three independent non-executive directors (Ms. Tang Sze Ning, Mr. Kan Man Kim, Mr. Wong Ka Chun). - As of the date of this report, the executive directors are Mr. Chu King Ting, Ms. Chu Shuk Ching, Mr. Tang Chi Him, and Mr. Chu Ho Wah [81](index=81&type=chunk) - The independent non-executive directors are Ms. Tang Sze Ning, Mr. Kan Man Kim, and Mr. Wong Ka Chun [81](index=81&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，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。 GRAND POWER LOGISTICS GROUP LIMITED 裕 程 物 流 集 團 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號： 8489） 截至二零二五年六月三十日止六個月中期業績公告 裕程物流集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附屬 公司截至二零二五年六月三十日止六個月的未經審核綜合業績。本公告列載本公司截至 二零二五年六月三十日止六個月的中期報告全文，並符合香港聯合交易所有限公司（「聯 交所」）GEM證券上市規則（「GEM上市規則」）有關中期業績初步公告附載資料的相關規定 會刊載於聯交所網站www.hkexnews.hk 及本公司網站 www.grandpowerexpress.com 供閱覽。 承董事會命 裕程物流集團有限公司 主席、首席執行官兼執行董事 趙彤 香港，二零二五年八月二十六日 於本公告 ...

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佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就本公佈全部或任 何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 ENM HOLDINGS LIMITED 安 寧 控 股 有 限 公 司 （於香港成立之有限公司） （股份代號： 00128） 截至二零 二 五 年六月三十日止六個月 中期業績公佈 安寧控股有限公司（「本公司」）董事會（「董事會」）謹此呈報本公司及 其附屬公司（統 稱「 本集 團」）截 至 二零 二五 年六月三十日止六個月之未經 審核簡明綜合中期業績，連同二零二 四年同期之未經審核比較數字。 本公佈下文所載 之 財務資料乃從截至二零 二 五 年六月三十日止六個月的簡 明綜合財務報表中摘錄。該簡明綜合財務報表並未經審核，惟經本公司外 聘核數師 羅申美 會計師事務所按照香港會計師公會頒佈 之 香港審閱工作準 則 第 2410 號「 實體的獨立核數師對中期財務 資料 之 審閱」進行審閱，其未 經修訂 之 審閱報告將刊載於即將寄發予股東 之 中期報告內。此外，截至二 零 二 五 年六月三十日止六個月 之 簡明綜合財 ...

Financial Performance - Total revenue for the six months ended June 30, 2025, increased to approximately HKD 3,570.9 million, compared to HKD 2,773.2 million for the same period in 2024, representing a growth of 28.7%[2] - Gross profit for the six months ended June 30, 2025, rose to approximately HKD 295.4 million, up from HKD 188.1 million in 2024, reflecting an increase of 57.1%[2] - Profit attributable to owners of the company for the six months ended June 30, 2025, was approximately HKD 24.3 million, down from HKD 35.8 million in 2024, indicating a decrease of 32.1%[2] - Total comprehensive income for the six months ended June 30, 2025, amounted to HKD 54.1 million, compared to HKD 25.8 million in 2024, showing an increase of 109.5%[5] - The company’s basic and diluted earnings per share for the six months ended June 30, 2025, were HKD 0.0486, compared to HKD 0.0717 in 2024, reflecting a decrease of 32.4%[4] - The group’s profit for the period was HKD 25,937,000, down from HKD 36,220,000 in the previous year, representing a decrease of about 28.4%[15] - The group's net profit decreased by approximately HKD 10.3 million or about 28.4% to approximately HKD 25.9 million for the six months ending June 30, 2025, compared to approximately HKD 36.2 million for the same period in 2024[53] Dividends - The company has resolved not to declare an interim dividend for the six months ended June 30, 2025[3] - The company did not declare any interim dividend for the six months ended June 30, 2025, compared to an interim dividend of HKD 7,500,000 for the same period in 2024[26] - The board resolved not to declare any interim dividend for the reporting period, compared to a dividend of HKD 0.015 per share for the six months ending June 30, 2024[66] Assets and Liabilities - Non-current assets as of June 30, 2025, totaled approximately HKD 453.9 million, compared to HKD 366.4 million as of December 31, 2024, representing an increase of 23.9%[6] - Current assets as of June 30, 2025, were approximately HKD 4,684.6 million, compared to HKD 4,489.8 million as of December 31, 2024, reflecting an increase of 4.4%[6] - Total liabilities as of June 30, 2025, were approximately HKD 4,412.6 million, compared to HKD 4,179.3 million as of December 31, 2024, indicating an increase of 5.6%[6] - Net assets as of June 30, 2025, amounted to approximately HKD 725.9 million, up from HKD 675.9 million as of December 31, 2024, showing an increase of 7.4%[7] - Total assets as of June 30, 2025, amounted to HKD 5,138,491,000, an increase from HKD 4,856,182,000 as of December 31, 2024[16] - Total liabilities decreased to HKD 4,412,631,000 from HKD 4,180,289,000, reflecting a reduction of approximately 5.5%[16] - The group's debt-to-equity ratio was approximately 49.7% as of June 30, 2025, compared to approximately 30.2% as of December 31, 2024[60] Revenue Segments - The construction segment generated external sales of HKD 3,496,608,000, up from HKD 2,704,868,000 in the previous year, reflecting a growth of about 29.3%[15] - The environmental segment reported external sales of HKD 74,260,000, compared to HKD 68,320,000 in the prior year, marking an increase of approximately 8.5%[15] - Revenue from building construction projects rose by approximately HKD 727.5 million or 30.1% to about HKD 3,141.8 million for the six months ending June 30, 2025[39] - Revenue from RMAA projects increased by approximately HKD 64.2 million or 22.1% to about HKD 354.8 million for the six months ending June 30, 2025[40] - The environmental business segment's revenue from sewage and reclaimed water treatment services increased to HKD 55,174,000, a rise of 28.5% from HKD 42,802,000[17] Costs and Expenses - Adjusted profit before tax for the group was HKD 38,918,000, down from HKD 49,869,000 in the previous year, indicating a decline of about 22.0%[15] - Financing costs totaled HKD 31,417,000, an increase of 5.9% compared to HKD 29,677,000 in the previous year[23] - The company reported a total contract cost of HKD 3,275,451,000, which increased from HKD 2,585,126,000 in the prior year[19] - Research and development expenses amounted to HKD 9,977,000, a decrease of 14.4% from HKD 11,644,000 in the previous year[20] - Administrative expenses decreased from approximately HKD 98.6 million to about HKD 90.6 million, primarily due to reduced employee costs and R&D expenses[48] - Financial asset impairment increased significantly from approximately HKD 17.7 million to about HKD 133.8 million due to expected credit loss provisions[50] Projects and Operations - The company has 57 ongoing projects with a total original contract value of approximately HKD 35.1 billion as of June 30, 2025[33] - During the reporting period, the company secured 9 new projects with an original contract value of about HKD 5.3 billion and completed 4 projects valued at approximately HKD 3.3 billion[33] - Zhejiang Construction Environmental Protection Co., Ltd. has 2 projects with an original contract value of approximately HKD 5.5 million as of June 30, 2025[34] - The company has expanded its environmental services by obtaining operational contracts for industrial wastewater treatment, enhancing its service scope in watershed management[35] Market Outlook - The company expects steady economic growth in Hong Kong and anticipates new project opportunities from increased government infrastructure spending[37] Corporate Governance - The announcement is made by the Chairman of the company, Zhang Guan Hua[72] - As of the announcement date, the company has four executive directors and one non-executive director, along with four independent non-executive directors[73]

[Company Information and Announcement Statements](index=1&type=section&id=Company%20Information%20and%20Announcement%20Statements) [Announcement Statements](index=1&type=section&id=Announcement%20Statements) Unaudited consolidated results for H1 2025, reviewed by independent auditors and the audit committee - The company announced its unaudited consolidated results for the six months ended June 30, 2025, which have been reviewed by independent auditors and the audit committee[2](index=2&type=chunk)[3](index=3&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Income Statement](index=2&type=section&id=Condensed%20Consolidated%20Income%20Statement) H1 2025 revenue slightly increased, but profit significantly decreased due to higher finance costs and associate/JV losses Condensed Consolidated Income Statement (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,470,685 | 1,459,162 | 11,523 | 0.8% | | Gross Profit | 367,123 | 363,097 | 4,026 | 1.1% | | Operating profit before fair value changes of investment properties | 255,109 | 113,889 | 141,220 | 124.0% | | Fair value (loss)/gain on investment properties | (3,543) | 13,781 | (17,324) | -125.7% | | Net finance costs | (156,212) | (142,367) | (13,845) | 9.7% | | Share of (loss)/profit of associates | (11,644) | 42,326 | (53,970) | -127.5% | | Share of (loss)/profit of joint ventures | (11,471) | 7,719 | (19,190) | -248.6% | | Profit before income tax | 72,239 | 35,348 | 36,891 | 104.4% | | Income tax expense | (70,130) | (32,146) | (37,984) | 118.2% | | Profit for the period | 2,109 | 3,202 | (1,093) | -34.1% | | Profit attributable to owners of the Company | 1,771 | 17,614 | (15,843) | -89.9% | | Basic and diluted earnings per share (RMB cents) | 0.02 | 0.24 | (0.22) | -91.7% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) H1 2025 total comprehensive income turned to gain, driven by improved exchange differences and equity investment fair value changes Condensed Consolidated Statement of Comprehensive Income (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Profit for the period | 2,109 | 3,202 | (1,093) | | Exchange differences | 212 | (2,481) | 2,693 | | Fair value changes of equity investments measured at fair value through other comprehensive income | 377 | (584) | 961 | | Total comprehensive income/(loss) for the period | 2,604 | (1,588) | 4,192 | | Attributable to owners of the Company | 2,266 | 12,824 | (10,558) | | Attributable to non-controlling interests | 338 | (14,412) | 14,750 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly decreased, while net current assets significantly increased due to reduced current liabilities Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 23,054,961 | 23,341,927 | (286,966) | -1.2% | | Net Current Assets | 4,709,740 | 2,754,181 | 1,955,559 | 71.0% | | Total Liabilities | 14,174,267 | 14,470,202 | (295,935) | -2.0% | | Total Equity | 8,880,694 | 8,871,725 | 8,969 | 0.1% | | Investment Properties | 7,641,402 | 7,448,361 | 193,041 | 2.6% | | Properties Under Development | 2,191,276 | 1,948,162 | 243,114 | 12.5% | | Completed Properties Held for Sale | 4,674,395 | 4,844,562 | (170,167) | -3.5% | | Trade and Other Receivables and Prepayments (Current) | 3,096,264 | 3,355,563 | (259,299) | -7.7% | | Cash and Cash Equivalents | 1,457,930 | 1,619,595 | (161,665) | -10.0% | | Bank and Other Borrowings (Current) | 3,537,954 | 4,853,445 | (1,315,491) | -27.1% | | Trade and Other Payables | 2,792,464 | 3,681,603 | (889,139) | -24.2% | | Bank and Other Borrowings (Non-current) | 4,457,429 | 2,644,556 | 1,812,873 | 68.6% | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information](index=6&type=section&id=General%20Information) The Group primarily operates in park services and industrial investment in mainland China, incorporated in the Cayman Islands - The Group's principal businesses include park operation services, park development services, and industrial investment, operating mainly in mainland China[8](index=8&type=chunk) - The Company is a limited company incorporated in the Cayman Islands, with its share capital listed on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk)[9](index=9&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) Financial statements are prepared under IAS 34 and HKEX Listing Rules, to be read with annual consolidated statements - The financial statements are prepared in accordance with International Accounting Standard 34 and the disclosure requirements of Appendix D2 to the HKEX Listing Rules[11](index=11&type=chunk) [Going Concern Basis](index=6&type=section&id=Going%20Concern%20Basis) Significant uncertainties exist regarding non-compliance with loan covenants, reclassifying borrowings, despite Board's mitigation plans - As of June 30, 2025, the Group had **RMB 802,050 thousand** in syndicated loans and **RMB 1,455,822 thousand** in borrowings with cross-default conditions that failed to meet financial covenants, resulting in the reclassification of some non-current borrowings as current liabilities[12](index=12&type=chunk)[13](index=13&type=chunk) - The Board has reviewed cash flow forecasts and implemented measures including negotiating waivers with lenders, monitoring covenant compliance, utilizing unutilized financing, accelerating property sales, and seeking alternative financing to alleviate liquidity pressure[14](index=14&type=chunk)[15](index=15&type=chunk) - Although the directors consider the preparation of financial statements on a going concern basis appropriate, significant uncertainties remain regarding the realization of these plans and measures[16](index=16&type=chunk)[18](index=18&type=chunk) [Significant Accounting Policies](index=8&type=section&id=Significant%20Accounting%20Policies) Financial statements prepared on historical cost basis, consistent with 2024, applying IFRS amendments effective Jan 1, 2025 - The financial statements are prepared on a historical cost basis and apply amendments to International Financial Reporting Standards effective on or after January 1, 2025[17](index=17&type=chunk) [Application of New and Revised International Financial Reporting Standards](index=9&type=section&id=Application%20of%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) IAS 21 (Amendment) applied with no material impact; IFRS 18 and other amendments expected to affect future disclosures - The Group has applied IAS 21 (Amendment) "Lack of Exchangeability," which has no significant impact on the current period's financial position and performance[19](index=19&type=chunk) - IFRS 18 and other subsequent amendments are expected to affect the presentation and disclosure of the consolidated income statement for annual reporting periods beginning on or after January 1, 2027[20](index=20&type=chunk) [Revenue and Segment Information](index=10&type=section&id=Revenue%20and%20Segment%20Information) Group's main segments are park operation, park development, and industrial investment; H1 2025 total revenue RMB 1,470,685 thousand - The Group's principal businesses include park operation services, park development services, and industrial investment[23](index=23&type=chunk)[29](index=29&type=chunk) [Revenue by Major Product or Service Line](index=10&type=section&id=Revenue%20by%20Major%20Product%20or%20Service%20Line) H1 2025 park operation services revenue RMB 1,038,192 thousand, park development services RMB 432,493 thousand, total revenue up 0.8% Revenue by Major Product or Service Line (RMB thousand) | Service Line | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change (thousand) | Year-on-year Change Rate | | :--- | :--- | :--- | :--- | :--- | | Park Operation Services | 1,038,192 | 1,106,955 | (68,763) | -6.2% | | Property Management Services | 417,166 | 376,419 | 40,747 | 10.8% | | Design and Construction Services | 372,343 | 487,841 | (115,498) | -23.7% | | Property Leasing Services | 80,202 | 67,911 | 12,291 | 18.1% | | Energy Services | 43,394 | 62,712 | (19,318) | -30.8% | | Group Catering and Hotel Services | 72,387 | 68,238 | 4,149 | 6.1% | | Park Development Services | 432,493 | 352,207 | 80,286 | 22.8% | | Industrial Park Space Sales | 315,268 | 239,920 | 75,348 | 31.4% | | Self-held Park Property Leasing | 117,225 | 112,287 | 4,938 | 4.4% | | **Total** | **1,470,685** | **1,459,162** | **11,523** | **0.8%** | [Segment Results](index=11&type=section&id=Segment%20Results) H1 2025 park operation and development segments grew significantly, while industrial investment recorded a loss Segment Results (RMB thousand) | Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change (thousand) | Year-on-year Change Rate | | :--- | :--- | :--- | :--- | :--- | | Park Operation Services Segment Results | 134,498 | 69,296 | 65,202 | 94.1% | | Park Development Services Segment Results | 175,151 | 94,306 | 80,845 | 85.7% | | Industrial Investment Segment Results | (9,995) | (760) | (9,235) | 1215.1% | | **Total Segment Results from External Customers** | **299,654** | **162,842** | **136,812** | **84.0%** | [Profit Before Income Tax](index=13&type=section&id=Profit%20Before%20Income%20Tax) Profit before income tax impacted by increased net finance costs, staff costs, and cost of properties sold in H1 2025 [Net Finance Costs](index=13&type=section&id=Net%20Finance%20Costs) H1 2025 net finance costs increased to RMB (156,212) thousand, mainly due to higher interest on bank borrowings Net Finance Costs (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Interest Income | 17,524 | 32,105 | (14,581) | | Net Exchange Gain | 7,773 | – | 7,773 | | Interest Expense on Bank and Other Borrowings | (179,471) | (169,824) | (9,647) | | Interest Expense on Lease Liabilities | (24,236) | (28,349) | 4,113 | | Capitalized Interest Expense | 22,198 | 26,478 | (4,280) | | Net Exchange Loss | – | (2,777) | 2,777 | | **Net Finance Costs** | **(156,212)** | **(142,367)** | **(13,845)** | [Staff Costs](index=14&type=section&id=Staff%20Costs) H1 2025 total staff costs increased to RMB 420,555 thousand, primarily from higher salaries and benefits Staff Costs (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Salaries, Wages and Other Benefits | 389,110 | 384,682 | 4,428 | | Contributions to Defined Contribution Retirement Plans | 31,445 | 27,809 | 3,636 | | **Total** | **420,555** | **412,491** | **8,064** | [Other Items](index=14&type=section&id=Other%20Items) H1 2025 saw fluctuations in cost of properties sold and construction, minor changes in depreciation, and intangible asset write-offs Other Items (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Depreciation | 38,339 | 45,151 | (6,812) | | Amortization | 6,206 | 3,802 | 2,404 | | Cost of Properties Sold | 289,972 | 183,441 | 106,531 | | Construction Costs | 366,862 | 445,099 | (78,237) | | Write-off of Intangible Assets | 1,730 | – | 1,730 | | Rental Income from Investment Properties | (199,203) | (187,496) | (11,707) | [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) H1 2025 income tax expense significantly increased to RMB 70,130 thousand, driven by higher corporate income and land appreciation taxes Income Tax Expense (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Corporate Income Tax | 67,358 | 48,709 | 18,649 | | Land Appreciation Tax | 20,209 | 9,676 | 10,533 | | Deferred Income Tax | (17,437) | (26,239) | 8,802 | | **Total** | **70,130** | **32,146** | **37,984** | - PRC subsidiaries are subject to a **25% corporate income tax rate**, with some eligible enterprises enjoying **20% or 15%** preferential rates[39](index=39&type=chunk) - Land appreciation tax is levied on the land appreciation portion of properties held for sale at progressive rates ranging from **30% to 60%**[39](index=39&type=chunk) [Dividends](index=15&type=section&id=Dividends) The Board does not recommend any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[36](index=36&type=chunk) [Earnings Per Share](index=15&type=section&id=Earnings%20Per%20Share) H1 2025 basic EPS was RMB 0.02 cents, a significant decrease, with no dilutive ordinary shares Earnings Per Share (RMB cents) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | Change (RMB cents) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.02 | 0.24 | (0.22) | -91.7% | - For the six months ended June 30, 2025 and 2024, there were no potentially dilutive ordinary shares, thus diluted earnings per share were equal to basic earnings per share[38](index=38&type=chunk) [Investment Properties](index=16&type=section&id=Investment%20Properties) As of June 30, 2025, investment properties increased, but a fair value loss was recognized due to market rent adjustments Investment Properties (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Beginning Balance | 7,448,361 | 7,570,607 | (122,246) | | Transferred from Properties Under Development and Completed Properties Held for Sale | 12,454 | 62,093 | (49,639) | | Other Additions | 219,868 | 27,320 | 192,548 | | Fair Value (Loss)/Gain | (3,543) | 13,781 | (17,324) | | Disposals | (35,738) | (51,379) | 15,641 | | Transferred to Property, Plant and Equipment | – | (65,180) | 65,180 | | **Ending Balance** | **7,641,402** | **7,557,242** | **84,160** | - Investment properties include offices, factories, and commercial ancillary facilities, with lease terms ranging from **1 to 30 years**, revalued by independent surveyors[40](index=40&type=chunk)[41](index=41&type=chunk) [Investments in Associates](index=16&type=section&id=Investments%20in%20Associates) As of June 30, 2025, investments in associates slightly decreased, primarily due to a shift from profit to loss Investments in Associates (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Beginning Balance | 853,810 | 841,208 | 12,602 | | Additions | 12,170 | 38,265 | (26,095) | | Share of (Loss)/Profit of Associates after Tax | (11,644) | 42,326 | (53,970) | | Disposals | (11,247) | (1,520) | (9,727) | | Dividends | – | (1,089) | 1,089 | | **Ending Balance** | **843,089** | **919,190** | **(76,101)** | [Investments in Joint Ventures](index=17&type=section&id=Investments%20in%20Joint%20Ventures) As of June 30, 2025, investments in joint ventures slightly decreased, primarily due to a shift from profit to loss Investments in Joint Ventures (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Beginning Balance | 471,972 | 447,675 | 24,297 | | Additions | 2,762 | 6,600 | (3,838) | | Share of (Loss)/Profit of Joint Ventures after Tax | (11,471) | 7,719 | (19,190) | | Dividends | (2,888) | – | (2,888) | | **Ending Balance** | **460,375** | **461,994** | **(1,619)** | [Properties Under Development](index=17&type=section&id=Properties%20Under%20Development) All properties under development are in China, stated at lower of cost and net realizable value, included in current assets - All properties under development are located in China, stated at the lower of cost and net realizable value, and included in current assets[44](index=44&type=chunk)[45](index=45&type=chunk) [Completed Properties Held for Sale](index=17&type=section&id=Completed%20Properties%20Held%20for%20Sale) All completed properties held for sale are in China, stated at lower of cost and net realizable value, included in current assets - All completed properties held for sale are located in China, stated at the lower of cost and net realizable value, and included in current assets[46](index=46&type=chunk)[47](index=47&type=chunk) [Inventories](index=17&type=section&id=Inventories) As of June 30, 2025, total inventories slightly decreased, with work-in-progress down and finished goods up Inventories (RMB thousand) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Raw Materials | 1,258 | 598 | 660 | | Work-in-progress | 1,692 | 5,556 | (3,864) | | Finished Goods | 67,287 | 65,040 | 2,247 | | **Total** | **70,237** | **71,194** | **(957)** | [Trade and Other Receivables and Prepayments](index=18&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total trade and other receivables decreased, despite increased prepayments for construction Trade and Other Receivables and Prepayments (RMB thousand) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Trade Receivables (Current) | 1,107,958 | 1,480,858 | (372,900) | | Prepayments for Construction Costs and Raw Materials | 496,180 | 233,208 | 262,972 | | Loans to Third Parties and Accrued Interest Receivable | 593,923 | 637,871 | (43,948) | | Provision for Impairment | (490,820) | (528,220) | 37,400 | | **Total** | **3,187,497** | **3,583,854** | **(396,357)** | Aging Analysis of Trade Receivables (RMB thousand) | Trade Receivables Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Within 1 year | 825,286 | 1,097,349 | (272,063) | | 1 to 2 years | 129,167 | 191,678 | (62,511) | | 2 to 3 years | 39,804 | 68,665 | (28,861) | | 3 to 4 years | 58,386 | 39,525 | 18,861 | | Over 4 years | 94,827 | 290,325 | (195,498) | | **Total** | **1,147,470** | **1,687,542** | **(540,072)** | [Trade and Other Payables](index=19&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly decreased, mainly due to reduced trade payables Trade and Other Payables (RMB thousand) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Trade Payables | 1,929,107 | 2,527,516 | (598,409) | | Other Payables and Accrued Expenses | 342,860 | 601,085 | (258,225) | | **Total** | **2,792,464** | **3,681,603** | **(889,139)** | Aging Analysis of Trade Payables (RMB thousand) | Trade Payables Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Within 1 year | 1,587,950 | 2,026,903 | (438,953) | | 1 to 2 years | 154,802 | 349,585 | (194,783) | | 2 to 3 years | 71,221 | 43,258 | 27,963 | | Over 3 years | 115,134 | 107,770 | 7,364 | | **Total** | **1,929,107** | **2,527,516** | **(598,409)** | [Share Capital and Treasury Shares](index=20&type=section&id=Share%20Capital%20and%20Treasury%20Shares) As of June 30, 2025, issued shares unchanged, but treasury shares increased due to repurchases for cancellation Share Capital and Treasury Shares (RMB thousand) | Indicator | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | Change (thousand) | | :--- | :--- | :--- | :--- | | Share Capital | 617,407 | 617,407 | 0 | | Treasury Shares | (124,632) | (121,056) | (3,576) | - For the six months ended June 30, 2025, the Company repurchased **17,348,000 shares** for cancellation, with a total consideration of **RMB 3,576,000**[54](index=54&type=chunk) - As of June 30, 2025, **152,998,000 treasury shares** were held for share award scheme purposes, and **17,348,000 treasury shares** were held for cancellation purposes[54](index=54&type=chunk) [Business Review and Outlook](index=22&type=section&id=Business%20Review%20and%20Outlook) [Review of Financial Information](index=22&type=section&id=Review%20of%20Financial%20Information) H1 2025 unaudited interim financial information reviewed by independent auditors Da Xin International (HK) CPA Limited - The Group's interim financial information has been reviewed by independent auditors Da Xin International (HK) CPA Limited[55](index=55&type=chunk) [2025 Half-Year Summary](index=22&type=section&id=2025%20Half-Year%20Summary) H1 2025 focused on new quality productive forces, with increased new contracts and sales collection, but lower profit - The Company's strategic goal is to develop new quality productive forces tailored to local conditions, build a modern industrial system, and focus on systematic operational capabilities[56](index=56&type=chunk) 2025 Half-Year Summary (RMB million) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change (million) | Year-on-year Change Rate | | :--- | :--- | :--- | :--- | :--- | | New Contract Value | 1,538.9 | 1,430.2 | 108.7 | 8% | | Sales Collection | 2,324.9 | 1,729.5 | 595.4 | 34% | | Revenue | 1,470.7 | 1,459.2 | 11.5 | 0.8% | | Profit for the Period | 2.1 | 3.2 | (1.1) | -34.4% | - Revenue from park operation services accounted for **70.6% of total revenue**, establishing its strategic development position as the main body of integrated industrial park operation business[57](index=57&type=chunk) - As of June 30, 2025, the Group held approximately **5.32 million square meters of high-quality industrial park land reserves**[57](index=57&type=chunk) [Revenue by Operating Segment](index=23&type=section&id=Revenue%20by%20Operating%20Segment) H1 2025 park operation services accounted for 70.6% of revenue (down YoY), park development services 29.4% (up YoY) Revenue by Operating Segment (RMB thousand) | Operating Segment | 2025 Revenue (RMB thousand) | 2025 % of Total | 2024 Revenue (RMB thousand) | 2024 % of Total | | :--- | :--- | :--- | :--- | :--- | | Park Operation Services | 1,038,192 | 70.6% | 1,106,955 | 75.9% | | Design and Construction Services | 372,343 | 25.3% | 487,841 | 33.4% | | Property Management Services | 417,166 | 28.4% | 376,419 | 25.8% | | Energy Services | 43,394 | 3.0% | 62,712 | 4.3% | | Group Catering and Hotel Services | 72,387 | 4.9% | 68,238 | 4.7% | | Property Leasing Services | 80,202 | 5.5% | 67,911 | 4.7% | | Other | 52,700 | 3.5% | 43,834 | 3.0% | | Park Development Services | 432,493 | 29.4% | 352,207 | 24.1% | | Industrial Park Space Sales | 315,268 | 21.4% | 239,920 | 16.4% | | Self-held Park Property Leasing | 117,225 | 8.0% | 112,287 | 7.7% | | **Total** | **1,470,685** | **100%** | **1,459,162** | **100%** | [Park Operation Services](index=24&type=section&id=Park%20Operation%20Services) H1 2025 park operation services revenue was RMB 1,038.2 million, a 6.2% decrease, with focus on "OVU Industrial Cloud" and "P+OEPC" model - Park operation services revenue was **RMB 1,038.2 million**, a year-on-year decrease of **RMB 68.8 million**[60](index=60&type=chunk) - The Group, based on "OVU Industrial Cloud," provides full lifecycle industrial park operation services to local governments and platform companies, including investment attraction, property management, and incubators[60](index=60&type=chunk) [Design and Construction Services](index=24&type=section&id=Design%20and%20Construction%20Services) Group promotes "P+OEPC" model; H1 2025 new OEPC contract RMB 524.8 million (up 117%), design and construction revenue RMB 372.3 million (down) - The Group promotes the "P+OEPC" innovative integrated operation business model, providing full-process integrated services and deepening the "Consulting+" sustainable development model[61](index=61&type=chunk) - A new "OEPC" project contract for Nanchang Xinjian District Industrial Park was signed, with a value of **RMB 524.8 million**, representing a **117% increase** compared to the same period last year[61](index=61&type=chunk) - Design and construction services revenue was **RMB 372.3 million**, a decrease of **RMB 115.5 million** compared to the same period in 2024[62](index=62&type=chunk) [Property Management Services](index=25&type=section&id=Property%20Management%20Services) Lidao Property transforms to smart ecosystems; H1 2025 new contracts RMB 54.9 million (up 22%), revenue RMB 417.2 million (up 10.8%), managed area up 18.92% - Lidao Property builds a smart community and smart industrial park ecosystem, forming a "iLidao APP, OVU Park Pass, EMS Central Operation Platform" tripartite management system[63](index=63&type=chunk) - New contract value for projects was **RMB 54.9 million**, an increase of **22%** compared to the same period last year[64](index=64&type=chunk) - Property management services revenue was **RMB 417.2 million**, an increase of **RMB 40.7 million** or **10.8%** compared to the same period in 2024[64](index=64&type=chunk) - As of the end of June 2025, Lidao Property managed an area of **32.936 million square meters**, a year-on-year increase of **18.92%**[64](index=64&type=chunk) [Incubator and Co-working Services (OVU Maker Star)](index=26&type=section&id=Incubator%20and%20Co-working%20Services%20(OVU%20Maker%20Star)) OVU Maker Star operates 36 sites in 22 cities, 400,000 sqm space, serving 2,000+ teams, with 21 national accreditations - OVU Maker Star operates **36 sites in 22 cities**, with an innovation and entrepreneurship space of **400,000 square meters**, serving over **2,000 teams**[65](index=65&type=chunk) - Successfully operated and awarded **21 national-level industrial space accreditations**, including national demonstration bases, technology enterprise incubators, and co-working spaces[65](index=65&type=chunk) [Property Leasing Services](index=26&type=section&id=Property%20Leasing%20Services) As of June 30, 2025, total leased property area 285,000 sqm, revenue RMB 80.2 million (up 18.1%) - Total leased property area was **285,000 square meters**, generating revenue of **RMB 80.2 million**, an **18.1% increase** compared to the same period in 2024[66](index=66&type=chunk) [Energy Services](index=27&type=section&id=Energy%20Services) CECEP Energy Saving provides integrated energy services; H1 2025 new contracts RMB 82.4 million, energy services revenue RMB 43.4 million (down) - CECEP Energy Saving provides integrated energy services and full industrial chain services for low-carbon smart industrial park investment, construction, and operation, holding nearly **59 DHC-related patents**[67](index=67&type=chunk) - New contract value for projects was approximately **RMB 82.4 million**[67](index=67&type=chunk) - Energy services revenue was **RMB 43.4 million**, a decrease of **RMB 19.3 million** compared to the same period in 2024[67](index=67&type=chunk) [Group Catering and Hotel Services](index=27&type=section&id=Group%20Catering%20and%20Hotel%20Services) Quanpai Catering and Ziyuan Hotel services generated RMB 72.4 million revenue in H1 2025, up 6.1% - Quanpai Catering has an annual catering capacity of **10 million person-times**, and Ziyuan Hotel provides full industrial chain services for boutique hotels[68](index=68&type=chunk) - Group catering and hotel services revenue was **RMB 72.4 million**, compared to 2024, an increase of **6.1%**[69](index=69&type=chunk) [Park Development Services](index=28&type=section&id=Park%20Development%20Services) H1 2025 park development services revenue RMB 432.5 million (up 22.8%), driven by manufacturing project completions - Park development services revenue was **RMB 432.5 million**, an increase of **RMB 80.3 million** or **22.8%** compared to the same period in 2024[70](index=70&type=chunk) - Revenue growth was primarily due to the completion and delivery of manufacturing projects in Beibei, Caidian, Ezhou, etc., which increased revenue by **RMB 101.9 million** year-on-year[70](index=70&type=chunk) [Industrial Park Space Sales](index=28&type=section&id=Industrial%20Park%20Space%20Sales) H1 2025 industrial park space sales revenue RMB 315,268 thousand (up 31.4%), but new contracted area and value decreased Industrial Park Space Sales (RMB thousand/square meter) | Indicator | 2025 (RMB thousand/square meter) | 2024 (RMB thousand/square meter) | Change | | :--- | :--- | :--- | :--- | | Revenue from Properties Sold and Delivered | 315,268 | 239,920 | Increase 31.4% | | Gross Floor Area Sold and Delivered | 58,855 | 38,028 | Increase 54.8% | | Average Selling Price (RMB per square meter) | 5,357 | 6,309 | Decrease 15.1% | - Chongqing Optic Valley United Technology Development Co., Ltd., Tianjin CECEP Optic Valley Development Co., Ltd., and Qingdao Optic Valley United Development Co., Ltd. were the top three contributors to industrial park space sales revenue[72](index=72&type=chunk) - During the reporting period, contracted sales area for industrial parks was **129,000 square meters**, a decrease of **22,000 square meters** compared to the same period last year[74](index=74&type=chunk) - Contracted sales value was **RMB 701.6 million**, a decrease of **RMB 88.3 million** compared to the same period last year[75](index=75&type=chunk) [Industrial Park Land Reserves](index=30&type=section&id=Industrial%20Park%20Land%20Reserves) As of June 30, 2025, Group holds 5.32 million sqm of industrial park land reserves across 18 cities - The Group holds approximately **5.32 million square meters of high-quality industrial park land reserves** in 18 cities including Wuhan, Shanghai, Qingdao, Changsha, and Chengdu[76](index=76&type=chunk)[84](index=84&type=chunk) [Self-held Park Property Leasing Status](index=34&type=section&id=Self-held%20Park%20Property%20Leasing%20Status) As of June 30, 2025, self-held properties 70% occupied (674,000 sqm leased), rental income RMB 117.2 million (up 4.4%) - Self-held properties had a total leasable area of **958,000 square meters**, with **674,000 square meters leased**, achieving an **occupancy rate of 70%**[83](index=83&type=chunk) - Rental income was **RMB 117.2 million**, an increase of **4.4%** compared to the same period last year[83](index=83&type=chunk) [Industrial Investment](index=35&type=section&id=Industrial%20Investment) Group's funds focus on tech sectors; H1 2025 saw Nreal D-round financing and several equity exits - The Group, through "CECEP Zhongjin" and "Zero Degree Capital," has established multiple industrial investment funds, focusing on information innovation and cybersecurity, integrated circuits, digital cities, and intelligent manufacturing[85](index=85&type=chunk) - Zero Degree Capital manages **11 funds**, promoting the development of four major areas: digital cities, network information, intelligent manufacturing, and new materials[85](index=85&type=chunk) - Nreal, an investment of CECEP Zhongjin fund, completed D-round financing, and partial equity exits were completed for Suzhou Weiyeda, Shanghai Hejingsi, Beijing Leyan Technology, Beijing Dingcai Technology, and full equity exit for Sipa Health Technology[86](index=86&type=chunk) [Significant Events After Reporting Period](index=36&type=section&id=Significant%20Events%20After%20Reporting%20Period) Post-reporting period, Company repurchased 52.8 million shares for cancellation for RMB 12.42 million; no other significant events - After the reporting period, the Company repurchased a total of **52,800,000 shares for cancellation**, with a total consideration of **RMB 12,420,000**[87](index=87&type=chunk) - Other than the aforementioned share repurchases, there were no other significant post-reporting period events that could materially affect the Group's financial position and operations from the end of the reporting period to the date of this announcement[88](index=88&type=chunk) [Future Outlook](index=36&type=section&id=Future%20Outlook) Facing market adjustments, CECEP Optic Valley aims to transform business, build a "second curve," and enhance operational quality - The Company will firmly advance business transformation, with building a "second curve" as its core objective, vigorously promoting the implementation of integrated operation projects[89](index=89&type=chunk)[90](index=90&type=chunk) [Promoting Business Transformation and the "Second Curve"](index=36&type=section&id=Promoting%20Business%20Transformation%20and%20the%20%22Second%20Curve%22) Integrated operations are key to market adjustments, building a "second curve" and accelerating Xiamen project implementation - Integrated operation business is considered the fundamental solution to deep adjustments in the real estate market, building long-tail value through a systematic approach to the market[90](index=90&type=chunk) - With the core objective of building a "second curve," vigorously promote the accelerated implementation of integrated operation projects such as Xiamen[90](index=90&type=chunk) [Seeking Strategic Synergy Value with China Electronics](index=37&type=section&id=Seeking%20Strategic%20Synergy%20Value%20with%20China%20Electronics) Leverage industrial park network to empower China Electronics' supply chain and integrate park development with data ecosystem - Leverage the industrial park network to empower China Electronics in establishing a higher-level information technology industry supply chain system[91](index=91&type=chunk) - Integrate park development and incubator construction with the building of a data element industry ecosystem[91](index=91&type=chunk) [Improving Operating Quality of Development Business](index=37&type=section&id=Improving%20Operating%20Quality%20of%20Development%20Business) H2 focus on inventory reduction, risk control, cash flow, flexible leasing/selling, and agile new project models - Key objectives are **inventory reduction, risk control, and cash flow preservation**[92](index=92&type=chunk) - Adopt flexible strategies of both leasing and selling to accelerate the disposal of sales properties and enhance the occupancy rate of investment properties[92](index=92&type=chunk) - New projects will adopt an agile customization model to control incremental growth, and deepen layered marketing to strengthen cross-regional collaborative investment attraction[92](index=92&type=chunk) [Reconstructing Operating and Management System for Investment Properties](index=37&type=section&id=Reconstructing%20Operating%20and%20Management%20System%20for%20Investment%20Properties) Establish asset management department to integrate resources, enhance operating efficiency, and create value in existing market - Establish an asset management department as a unified investment property operating and management institution at the Group level[93](index=93&type=chunk) - The core function is to ensure investment properties are integrated into a professional decision-making and operational management system, enhancing operating efficiency and creating unique value in the existing market[93](index=93&type=chunk) [Financial Review and Liquidity](index=38&type=section&id=Financial%20Review%20and%20Liquidity) [Revenue](index=38&type=section&id=Revenue) H1 2025 revenue RMB 1,470.7 million, up 0.8%; park operation services 70.6%, park development services 29.4% Revenue by Operating Segment (RMB thousand) | Operating Segment | 2025 Revenue (RMB thousand) | 2025 % of Total | 2024 Revenue (RMB thousand) | 2024 % of Total | | :--- | :--- | :--- | :--- | :--- | | Park Operation Services | 1,038,192 | 70.6% | 1,106,955 | 75.9% | | Park Development Services | 432,493 | 29.4% | 352,207 | 24.1% | | **Total** | **1,470,685** | **100%** | **1,459,162** | **100%** | - Revenue for the reporting period increased by **RMB 11.5 million** year-on-year, a **0.8% increase**[94](index=94&type=chunk) [Cost of Sales](index=38&type=section&id=Cost%20of%20Sales) H1 2025 cost of sales RMB 1,103.6 million, down 0.7%, representing 75.0% of total revenue - Cost of sales was **RMB 1,103.6 million**, a decrease of **RMB 7.5 million** or **0.7%** compared to the same period in 2024[95](index=95&type=chunk) - Cost of sales accounted for **75.0%** of the Group's revenue (75.1% in the same period of 2024)[95](index=95&type=chunk) [Gross Profit and Gross Profit Margin](index=39&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) H1 2025 overall gross profit RMB 367.1 million (up RMB 4.0 million), gross profit margin 25.0% (up 0.1%) - Overall gross profit was **RMB 367.1 million**, an increase of **RMB 4.0 million** compared to the same period in 2024[96](index=96&type=chunk) - Overall gross profit margin was **25.0%**, an increase of **0.1%** compared to the gross profit margin of 24.9% in the same period of 2024[96](index=96&type=chunk) [Other Income](index=39&type=section&id=Other%20Income) H1 2025 other income RMB 65.3 million, an increase of RMB 33.0 million year-on-year - Other income was **RMB 65.3 million**, an increase of **RMB 33.0 million** compared to the same period in 2024[97](index=97&type=chunk) [Selling and Distribution Expenses](index=39&type=section&id=Selling%20and%20Distribution%20Expenses) H1 2025 selling and distribution expenses RMB 70.6 million, a 2.1% increase year-on-year - Selling and distribution expenses were **RMB 70.6 million**, an increase of **2.1%** compared to the same period in 2024[98](index=98&type=chunk) [Administrative Expenses](index=39&type=section&id=Administrative%20Expenses) H1 2025 administrative expenses RMB 157.7 million, a decrease of RMB 3.7 million or 2.3% compared to the same period in 2024 - Administrative expenses were **RMB 157.7 million**, a decrease of **RMB 3.7 million** or **2.3%** compared to the same period in 2024[99](index=99&type=chunk) [Fair Value Changes of Investment Properties](index=39&type=section&id=Fair%20Value%20Changes%20of%20Investment%20Properties) H1 2025 investment properties fair value loss RMB 3.5 million, due to market rent decline - Fair value loss on investment properties was **RMB 3.5 million**, a decrease of **RMB 17.3 million** compared to the same period in 2024[100](index=100&type=chunk) - The loss was mainly due to market impact, with a decline in the valuation of self-held properties caused by downward adjustments in rents[100](index=100&type=chunk) [Income Tax Expense](index=40&type=section&id=Income%20Tax%20Expense) H1 2025 income tax expense RMB 70.1 million, up RMB 38.0 million, due to increased land appreciation and corporate income taxes - Income tax expense was **RMB 70.1 million**, an increase of **RMB 38.0 million** compared to the same period in 2024[101](index=101&type=chunk) - The main reasons were an increase of **RMB 10.5 million** in China Land Appreciation Tax and an increase of **RMB 18.7 million** in China Corporate Income Tax expense[101](index=101&type=chunk) [Profit for the Reporting Period](index=40&type=section&id=Profit%20for%20the%20Reporting%20Period) H1 2025 profit for the period RMB 2.1 million, a decrease of RMB 1.1 million year-on-year - Profit for the period was **RMB 2.1 million**, a decrease of **RMB 1.1 million** compared to the same period in 2024[102](index=102&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) H1 2025 net cash outflow from operating activities RMB 145.5 million, from financing activities RMB 75.0 million - Net cash outflow from operating activities was **RMB 145.5 million**, mainly due to new land reserves and project construction expenditures[103](index=103&type=chunk) - Net cash outflow from financing activities was **RMB 75.0 million**, mainly used for repayment of bank and other borrowings[103](index=103&type=chunk) [Indebtedness](index=40&type=section&id=Indebtedness) As of June 30, 2025, total outstanding indebtedness increased to RMB 7,995.4 million, up RMB 497.4 million - Total outstanding indebtedness increased from **RMB 7,498.0 million** as of December 31, 2024, to **RMB 7,995.4 million** as of June 30, 2025, an increase of **RMB 497.4 million**[104](index=104&type=chunk) [Capital Expenditure and Capital Commitments](index=40&type=section&id=Capital%20Expenditure%20and%20Capital%20Commitments) H1 2025 capital expenditure RMB 21.0 million; outstanding commitments RMB 2,633.5 million as of June 30, 2025 - Capital expenditure was **RMB 21.0 million**, mainly related to the acquisition of property, plant and equipment and intangible assets[105](index=105&type=chunk) - Outstanding commitments were **RMB 2,633.5 million**, expected to be financed by bank borrowings and cash flows from operating activities[106](index=106&type=chunk) [Employees](index=41&type=section&id=Employees) As of June 30, 2025, Group employed 8,509 full-time employees; staff costs RMB 420.6 million, up RMB 8.1 million - As of June 30, 2025, the Group employed **8,509 full-time employees**[107](index=107&type=chunk) - Staff costs were approximately **RMB 420.6 million**, an increase of **RMB 8.1 million** compared to the same period last year[107](index=107&type=chunk) [Other Information](index=41&type=section&id=Other%20Information) [Purchase, Sale or Redemption of the Company's Listed Securities](index=41&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) H1 2025, Company repurchased 17.348 million shares for cancellation; further 52.8 million shares repurchased post-period Repurchase of Listed Securities (HKD) | Month | Number of Shares Repurchased | Total Consideration (HKD) | | :--- | :--- | :--- | | June 2025 | 17,348,000 | 3,870,640 | - After the reporting period, **52,800,000 shares** were repurchased for cancellation in July 2025, with a total consideration of approximately **HKD 13,440,568**[110](index=110&type=chunk) [Corporate Governance](index=42&type=section&id=Corporate%20Governance) Company adopted and complied with HKEX Listing Rules Appendix C1 Corporate Governance Code during the reporting period - The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the reporting period[111](index=111&type=chunk) [Standard Code for Securities Transactions](index=42&type=section&id=Standard%20Code%20for%20Securities%20Transactions) Company adopted HKEX Listing Rules Appendix C3 Standard Code for directors' securities transactions; all directors complied - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with this code during the reporting period[112](index=112&type=chunk)[113](index=113&type=chunk) [Changes in Directors' Information](index=42&type=section&id=Changes%20in%20Directors'%20Information) No changes in directors' information requiring disclosure since the 2024 annual report publication - No changes in directors' information since the publication of the 2024 annual report[114](index=114&type=chunk) [Review of Interim Results by Audit Committee](index=43&type=section&id=Review%20of%20Interim%20Results%20by%20Audit%20Committee) Audit Committee, management, and independent auditors reviewed H1 2025 interim results and accounting policies - The Audit Committee, together with management and independent auditors, has reviewed the Group's interim results and accounting principles and policies[115](index=115&type=chunk) [Dividends](index=43&type=section&id=Dividends) The Board does not recommend any interim dividend for the reporting period - The Board does not recommend the payment of any interim dividend for the reporting period[116](index=116&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=43&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report) This announcement published online; 2025 Interim Report to be dispatched to shareholders and published in due course - This announcement has been published on the Company's website and the HKEX website, and the 2025 Interim Report will be dispatched to shareholders and published on the website in due course[117](index=117&type=chunk)

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部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。 （於開曼群島註冊成立的有限公司） （股份代號：8107） 補充公告 截至二零二四年十二月三十一日止年度的年報 茲提述細葉榕科技控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）於二 零 二 五 年 三 月 三 十 一 日 刊 發 截 至 二 零 二 四 年 十 二 月 三 十 一 日 止 年 度 的 年 報（「 年 報」）。除文義另有所指外，本公告所用詞彙與年報所界定者具有相同涵義。 除年報所載資料外，本公司董事會（「董事會」）謹向本公司股東及潛在投資者提供 以下補充資料。 導致二零二四財政年度收益大幅減少的原因 誠 如 本 集 團 年 報 所 披 露 ， 本 集 團 於 二 零 二 四 財 政 年 度 的 收 益 大 幅 下 降 ， 主 要 由 於：(i)流失部分主要服裝客戶的採購訂單；(ii)本公司採取更審慎的財務方針，專 注 於 ...

`outline` 內容已翻譯成英文，並按照要求生成了專業結構的報告大綱： 2025 Interim Results Highlights [2025 Interim Results Highlights (Unaudited)](index=5&type=section&id=2025%20Interim%20Results%20Highlights%20(Unaudited)) The Group's revenue increased by 15.7% to approximately 23.0 million HKD, with gross profit rising to 10.9 million HKD and a net profit of 24,959 HKD for the period - The Group's revenue increased by **15.7%** to approximately **23.0 million HKD** for the period, up from approximately 19.9 million HKD in the same period last year[11](index=11&type=chunk) - The Group's gross profit increased to approximately **10.9 million HKD** from approximately 9.4 million HKD in the same period, with the gross profit margin also rising from 47.3% to **47.5%**[11](index=11&type=chunk) - Operating expenses increased by **6.8%** to approximately **11.0 million HKD** (same period last year: approximately 10.3 million HKD), primarily due to higher staff costs and travel expenses[11](index=11&type=chunk) - Profit and total comprehensive income for the period increased to **HKD 24,959** (same period last year: loss and total comprehensive expenses of approximately 0.6 million HKD), mainly driven by increased revenue[11](index=11&type=chunk) - The Board of Directors resolved not to declare an interim dividend for the period (same period last year: nil)[12](index=12&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's financial performance, showing a profit of HKD 24,959 for the six months ended June 30, 2025, compared to a loss in the prior period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Revenue | 23,041,649 | 19,918,050 | | Cost of sales and services | (12,099,177) | (10,487,018) | | Gross profit | 10,942,472 | 9,431,032 | | Other income and other gains | 194,488 | 300,344 | | Net write-down of inventories to net realisable value | (114,768) | (7,731) | | Net reversal of expected credit losses | 2,933 | 6,949 | | Operating expenses | (11,031,415) | (10,328,850) | | Finance costs | (81,393) | (129,734) | | Loss before income tax | (87,683) | (727,990) | | Income tax credit | 112,642 | 89,061 | | Profit/(Loss) and total comprehensive income/(expense) for the period | 24,959 | (638,929) | | Basic and diluted earnings/(loss) per share (HK cents) | 0.00 | (0.06) | Condensed Consolidated Statement of Financial Position [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the Group's assets, liabilities, and equity as of June 30, 2025, showing total assets of HKD 38.36 million Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Metric | As at June 30, 2025 (HKD) | As at December 31, 2024 (HKD) | | :--- | :--- | :--- | | **ASSETS** | | | | Total non-current assets | 4,253,410 | 5,653,030 | | Total current assets | 34,105,494 | 26,320,038 | | **LIABILITIES** | | | | Total current liabilities | 17,280,950 | 10,101,442 | | Total non-current liabilities | 958,661 | 1,777,292 | | **EQUITY** | | | | Net assets | 20,119,293 | 20,094,334 | | Share capital | 10,000,000 | 10,000,000 | | Reserves | 10,119,293 | 10,094,334 | | Total equity | 20,119,293 | 20,119,293 | Condensed Consolidated Statement of Changes in Equity [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details the changes in the Group's equity components for the six months ended June 30, 2025, reflecting the period's profit and other movements Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | Item | Share Capital (HKD) | Share Premium (HKD) | Merger Reserve (HKD) | Statutory Reserve (HKD) | Accumulated Losses (HKD) | Total (HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 (audited) | 10,000,000 | 55,098,836 | (3,416,148) | 504,489 | (42,092,843) | 20,094,334 | | Profit and total comprehensive income for the period | – | – | – | – | 24,959 | 24,959 | | Balance as at June 30, 2025 (unaudited) | 10,000,000 | 55,098,836 | (3,416,148) | 504,489 | (42,067,884) | 20,119,293 | | As at January 1, 2024 (audited) | 10,000,000 | 55,098,836 | (3,416,148) | 504,489 | (45,851,712) | 16,335,465 | | Loss and total comprehensive expense for the period | – | – | – | – | (638,929) | (638,929) | | Balance as at June 30, 2024 (unaudited) | 10,000,000 | 55,098,836 | (3,416,148) | 504,489 | (46,490,641) | 15,696,536 | Condensed Consolidated Statement of Cash Flows [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Net cash used in/(generated from) operating activities | (3,272,147) | 2,800,976 | | Net cash generated from/(used in) investing activities | 1,942,113 | (69,611) | | Net cash used in financing activities | (1,047,144) | (1,133,745) | | Net (decrease)/increase in cash and cash equivalents | (2,377,178) | 1,597,620 | | Cash and cash equivalents at beginning of period | 8,139,417 | 12,243,846 | | Cash and cash equivalents at end of period | 5,762,239 | 13,841,466 | Notes to the Condensed Consolidated Interim Financial Statements [Notes to the Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanatory notes to the condensed consolidated interim financial statements, covering accounting policies, segment information, and other financial disclosures [General Information and Basis of Preparation](index=11&type=section&id=1.%20General%20Information%20and%20Basis%20of%20Preparation) Asia Pioneer Entertainment Holdings Limited, listed on GEM, operates electronic gaming equipment and smart vending machine businesses in Macau and Asia, with financial statements prepared under IAS 34 - The Company was incorporated in the Cayman Islands on February 22, 2017, with shares listed on GEM of the Stock Exchange of Hong Kong since November 15, 2017[20](index=20&type=chunk) - Key shareholders include **Mr. Herman Stephen Chui**, **Mr. Ng Man Ho**, and **Mr. Chan Tsz Lun**[21](index=21&type=chunk) - The Group

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) This announcement presents the unaudited condensed consolidated interim results of CNNC International Limited and its subsidiaries for the six months ended June 30, 2025, with comparative figures for the corresponding period in 2024 - The Board of Directors of CNNC International Limited is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries for the six months ended June 30, 2025 (the "Review Period") and comparative figures for the corresponding period in 2024[3](index=3&type=chunk) [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, and the condensed consolidated statement of financial position as at June 30, 2025, illustrating the Group's financial performance and period-end asset and liability status [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group achieved significant revenue growth during the review period, swinging from a loss to a net profit, with a notable improvement in basic earnings per share Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 592,110 | 6,400 | 9151.7% | | Gross Profit | 19,671 | 6,400 | 207.4% | | Profit/(Loss) Before Tax | 12,375 | (6,116) | Swung to profit | | Profit/(Loss) Attributable to Owners of the Company for the Period | 10,359 | (7,731) | Swung to profit | | Basic and Diluted Earnings/(Loss) Per Share | 2.12 HK cents | (1.58) HK cents | Swung to profit | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's current assets and liabilities both significantly increased, primarily due to changes in inventories, trade receivables, and trade payables, leading to a rise in the gearing ratio Summary of Condensed Consolidated Statement of Financial Position (As at June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 4,177 | 5,020 | | Current Assets | 1,521,990 | 875,037 | | Current Liabilities | 839,773 | 204,547 | | Net Current Assets | 682,217 | 670,490 | | Net Assets | 685,640 | 673,884 | - The **gearing ratio** increased from approximately **0.23** as at December 31, 2024, to approximately **0.55** as at June 30, 2025, primarily due to an increase in trade and other payables from uranium product purchases[42](index=42&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section details the basis of preparation, significant accounting policies, and application of new and revised HKFRSs for the interim financial statements, along with specific notes on revenue, segment information, income tax expense, dividends, earnings per share, trade and other receivables, and trade and other payables [Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, presented in HKD, and should be read in conjunction with the 2024 annual report - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 of the Listing Rules[7](index=7&type=chunk) - The Company's functional currency is US dollars, but for the convenience of shareholders, the condensed consolidated interim financial statements are presented in HKD, with all values rounded to the nearest thousand[7](index=7&type=chunk) [Significant Accounting Policies](index=5&type=section&id=2.%20Significant%20Accounting%20Policies) The interim financial statements are prepared on a historical cost basis, reviewed by the Audit Committee, and the application of new and revised HKFRSs had no significant impact on financial performance or position this period - The condensed consolidated interim financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value, and have been reviewed by the Audit Committee[8](index=8&type=chunk) - The new and revised Hong Kong Financial Reporting Standards (such as the amendment to HKAS 21 "Lack of Exchangeability") were first applied during this interim period, but had no significant impact on the Group's financial performance and position[9](index=9&type=chunk)[10](index=10&type=chunk) [Revenue and Segment Information](index=6&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group primarily operates two segments: Operating Mineral Resources (uranium trading and procurement services) and Exploration and Sale of Mineral Resources, with the former showing significant revenue growth and contributing most of the revenue and profit - The Group's operating and reportable segments include "Operating Mineral Resources" (trading of uranium and agency income from providing uranium procurement services) and "Exploration and Sale of Mineral Resources" (exploration and sale of uranium)[11](index=11&type=chunk) Segment Revenue and Profit (For the six months ended June 30) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | 2025 Profit/(Loss) (HKD thousands) | 2024 Profit/(Loss) (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Operating Mineral Resources | 592,110 | 6,400 | 14,116 | (8,282) | | Exploration and Sale of Mineral Resources | — | — | (2,409) | (3,051) | | Total | 592,110 | 6,400 | 11,707 | (11,333) | Segment Assets and Liabilities (As at June 30) | Segment | 2025 Assets (HKD thousands) | 2024 Assets (HKD thousands) | 2025 Liabilities (HKD thousands) | 2024 Liabilities (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Operating Mineral Resources | 1,511,106 | 630,699 | 813,482 | 179,183 | | Exploration and Sale of Mineral Resources | 9,844 | 3,486 | 22,653 | 19,647 | | Total Segment | 1,520,950 | 634,185 | 836,135 | 198,830 | [Income Tax Expense](index=9&type=section&id=4.%20Income%20Tax%20Expense) The Group's income tax expense primarily comprises Hong Kong profits tax and PRC corporate income tax, with the total amount increasing year-on-year, reflecting higher taxable profits - Hong Kong profits tax adopts a two-tiered tax rate system, with the first **HKD 2,000,000** of profits taxed at **8.25%** and the remainder at **16.5%**; PRC subsidiaries are taxed at **25%**[14](index=14&type=chunk)[15](index=15&type=chunk) Income Tax Expense (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 1,845 | — | | PRC Corporate Income Tax | 171 | — | | PRC Withholding Tax Paid on Dividends Received from an Associate | — | 1,615 | | **Total Income Tax Expense** | **2,016** | **1,615** | [Dividends](index=10&type=section&id=6.%20Dividends) For the period ended June 30, 2025, the Company neither paid, declared, nor proposed any dividends - No dividends were paid, declared, or proposed for the period ended June 30, 2025, nor have any been proposed since the end of the reporting period (corresponding period in 2024: nil)[19](index=19&type=chunk) [Basic and Diluted Earnings/(Loss) Per Share](index=10&type=section&id=7.%20Basic%20and%20Diluted%20Earnings%2F%28Loss%29%20Per%20Share) Basic earnings per share attributable to owners of the Company was **2.12 HK cents**, a significant improvement from a loss of **1.58 HK cents** in the corresponding period last year, with no dilutive effect from potential ordinary shares Basic and Diluted Earnings/(Loss) Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Company for the Period (HKD thousands) | 10,359 | (7,731) | | Number of Ordinary Shares for Basic Earnings/(Loss) Per Share | 489,168,308 | 489,168,308 | | Basic and Diluted Earnings/(Loss) Per Share (HK cents) | 2.12 | (1.58) | - Diluted earnings/(loss) per share for the periods ended June 30, 2025 and 2024 were the same as basic earnings/(loss) per share, as there were no potential ordinary shares in issue during the relevant periods[20](index=20&type=chunk) [Trade and Other Receivables](index=11&type=section&id=8.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables significantly increased to **HKD 350,460,000**, primarily driven by trade receivables Trade and Other Receivables (As at June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables | 345,318 | 85,350 | 304.6% | | Other Receivables | 3,798 | 1,186 | 220.2% | | Deposits Paid | 1,175 | 1,112 | 5.7% | | Prepayments | 1,247 | 246 | 406.9% | | Less: Non-current Portion of Deposits | (1,078) | (1,078) | 0% | | **Total** | **350,460** | **86,816** | **303.7%** | [Trade and Other Payables](index=11&type=section&id=9.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly increased to **HKD 812,757,000**, primarily due to a substantial rise in trade payables Trade and Other Payables (As at June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 787,538 | 154,320 | 410.3% | | Other Payables | 2,630 | 2,600 | 1.2% | | Amounts Due to Joint Venture Partners | 20,275 | 17,605 | 15.2% | | Accruals | 2,314 | 3,781 | -38.8% | | **Total** | **812,757** | **178,306** | **355.8%** | - Credit terms for goods sales and purchases are typically within **5 to 30 days**, and the Group has financial risk management policies to ensure all payables are settled within credit terms[22](index=22&type=chunk)[23](index=23&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section elaborates on the Group's performance, market and business review, operating review, and future strategies for the review period, highlighting the significant growth of the uranium trading business and its positive impact on financial performance, while outlining future development directions [Results](index=12&type=section&id=Results) The Group's revenue surged by **9152%** to **HKD 592,110,000** during the review period, swinging to a net profit of **HKD 10,359,000**, primarily driven by a substantial increase in uranium trading volume - Revenue recorded a significant increase of approximately **9152%** to approximately **HKD 592,110,000**, and gross profit increased by approximately **207%** to approximately **HKD 19,671,000**[24](index=24&type=chunk) - The Group swung from a loss to a pre-tax profit of approximately **HKD 12,375,000** (corresponding period in 2024: pre-tax loss of approximately **HKD 6,116,000**), with a net profit of approximately **HKD 10,359,000** (corresponding period in 2024: net loss of approximately **HKD 7,731,000**)[24](index=24&type=chunk) - Approximately **2,200,000 pounds** of natural uranium were sold, of which approximately **1,000,000 pounds** were sold through transactions with independent third parties, and approximately **530 pounds** and **750,000 pounds** were sold to the parent group through uranium supply transactions and uranium agency transactions, respectively[25](index=25&type=chunk) [Market and Business Review](index=13&type=section&id=Market%20and%20Business%20Review) The natural uranium market is influenced by geopolitics and US tariff policies, with narrowing spot price fluctuations and stable long-term prices; the Group continues to focus on uranium product trading, actively seeks high-quality uranium resource projects, communicates with the Mongolian government to resolve mining rights issues, and discusses restart plans with the Niger government and Somina shareholders [Market Review](index=13&type=section&id=Market%20Review) Natural uranium spot prices rebounded after an initial dip, rising from approximately **USD 73** to **USD 78.5 per pound**, with long-term prices stable at **USD 80 per pound**, reflecting market consensus on medium-to-long-term supply tightness - Natural uranium spot prices hovered around **USD 73 per pound** at the beginning of the review period and closed at approximately **USD 78.5 per pound** at the end of June 2025[27](index=27&type=chunk) - The long-term price of natural uranium remained at **USD 80 per pound** throughout the review period, reflecting the current market consensus on medium-to-long-term supply tightness of natural uranium[27](index=27&type=chunk) - Uncertainty exists regarding the US government's tariff policy; although no additional taxes are currently imposed on natural uranium, the industry has taken proactive defensive measures[28](index=28&type=chunk)[29](index=29&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) The Group continued its uranium product trading, selling approximately **2,200,000 pounds** of natural uranium and collaborating with its parent group, while actively engaging with the Mongolian government to resolve mining rights issues and discussing restart plans with the Niger government and other Somina shareholders - The Group sold approximately **2,200,000 pounds** of natural uranium, generating operating revenue of approximately **HKD 592,110,000**, with approximately **1,000,000 pounds** sold through transactions with independent third parties[30](index=30&type=chunk) - The Group continues to maintain close communication and coordination with relevant Mongolian government departments to resolve mining rights issues for its Mongolian mining projects[31](index=31&type=chunk) - The Group maintains close communication with the Niger government and continues discussions with other shareholders of its associate, Somina, with a view to formulating a preliminary restart plan in the foreseeable future[32](index=32&type=chunk) [Operating Review](index=15&type=section&id=Operating%20Review) The Group's revenue and gross profit significantly increased, primarily due to higher uranium trading volume; other income and net gains rose from increased bank interest income, finance costs substantially decreased due to no bank financing loans, and administrative expenses slightly declined from reduced intermediary service fees Changes in Key Profit or Loss Items (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Revenue | 592,110 | 6,400 | 9152% | Significant increase in uranium trading volume | | Cost of Sales | 572,439 | — | N/A | Significant increase in uranium trading volume | | Gross Profit | 19,671 | 6,400 | 207% | Significant increase in uranium trading volume | | Other Income and Net Gains | 9,339 | 4,258 | 119% | Increase in bank interest income | | Net Exchange Gain | 1,337 | 493 | 171% | Slight appreciation of USD against HKD | | Selling and Distribution Expenses | 1,962 | 1,825 | 7.5% | Increase in natural uranium storage expenses | | Administrative Expenses | 15,894 | 17,659 | -10% | Decrease in intermediary service fees | | Share of Results of Associates | — | 15,596 | -100% | Disposal of interest in a subsidiary | | Finance Costs | 116 | 13,379 | -99% | No utilization of bank financing loans | | Income Tax Expense | 2,016 | 1,615 | 24.8% | Increase in taxable profit | | Net Profit/(Loss) | 10,359 | (7,731) | Swung to profit | Combination of the above factors | | Total Comprehensive Income/(Expense) | 11,756 | (20,859) | Swung to profit | Combination of the above factors | [Future Strategies](index=16&type=section&id=Future%20Strategies) The Group will continue to focus on developing its uranium product trading business, actively seek high-quality uranium resource projects, and leverage its framework agreement with China Uranium to strengthen its position in the international uranium market, while also resolving Mongolian mining rights disputes, promoting the Somina project's restart, and exploring diversified business and potential investment opportunities - The Group will focus on developing its uranium product trading business, actively seeking high-quality uranium resource projects, with a focus on operational projects, to align with the parent group's development[37](index=37&type=chunk) - A 2024 framework agreement was entered into with China Uranium, appointing the Group as the exclusive supplier, agent, and authorized distributor for China Uranium Group, aiming to consolidate its strategic position in the international uranium market[37](index=37&type=chunk)[38](index=38&type=chunk) - Discussions will continue with the Mongolian government to resolve the expiry of exploration licenses for uranium resource projects, and with the Niger government and other Somina shareholders to formulate a preliminary restart plan[38](index=38&type=chunk)[39](index=39&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) This section covers the Group's employee and remuneration policies, liquidity and financial resources, acquisitions and disposals during the reporting period, foreign exchange risk management, capital structure, contingent liabilities, pledge of assets, significant events after the reporting period, interim dividend policy, and corporate governance matters, including the composition and responsibilities of Board committees [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed **34** full-time staff, with remuneration determined by individual performance, experience, and qualifications, alongside sufficient training and professional development opportunities Number of Employees (As at June 30) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong | 4 | 6 | | Mainland China | 26 | 26 | | Mongolia | 4 | 4 | | **Total** | **34** | **36** | - Remuneration packages are determined based on individual performance, experience, and qualifications, ensuring all employees receive adequate training and continuous professional development opportunities[40](index=40&type=chunk) [Liquidity and Financial Resources](index=18&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity position is robust, with a significant increase in cash and cash equivalents, primarily due to cash inflows from amounts due from direct holding companies; both current assets and liabilities grew substantially, leading to a higher gearing ratio - Net cash inflow of approximately **HKD 179,114,000** was recorded during the review period (corresponding period in 2024: net cash outflow of approximately **HKD 49,536,000**), mainly due to cash received from "amounts due from direct holding companies" related to trade receivables[41](index=41&type=chunk) Key Liquidity Indicators (As at June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 787,583 | 607,031 | 29.7% | | Non-current Assets | 754 | 1,626 | -53.6% | | Current Assets | 1,521,990 | 875,037 | 73.9% | | Current Liabilities | 839,773 | 204,547 | 310.6% | | Total Shareholders' Funds | 685,640 | 673,884 | 1.7% | | Gearing Ratio | 0.55 | 0.23 | 139.1% | [Acquisition and Disposal of Subsidiaries and Associates](index=19&type=section&id=Acquisition%20and%20Disposal%20of%20Subsidiaries%20and%20Associates) During the review period, the Group did not undertake any significant acquisitions or disposals of subsidiaries and associates - During the review period, the Group did not undertake any significant acquisitions or disposals of subsidiaries and associates[43](index=43&type=chunk) [Foreign Exchange Exposure](index=19&type=section&id=Foreign%20Exchange%20Exposure) The Group primarily operates in Hong Kong, mainland China, and Mongolia, with major transaction currencies being HKD, RMB, USD, and MNT; currently, there is no foreign currency hedging policy, but management will monitor risks and consider hedging as needed - The Group primarily conducts business in the Hong Kong Special Administrative Region, mainland China, and Mongolia, with major transaction currencies being HKD, RMB, USD, and Mongolian Tugrik[44](index=44&type=chunk) - The Group does not have a foreign currency hedging policy, but management will monitor foreign exchange risks and consider hedging significant currency exposures when necessary[44](index=44&type=chunk) [Capital Structure](index=19&type=section&id=Capital%20Structure) The Group's capital structure has not undergone any significant changes since December 31, 2024 - The Group's capital structure has not undergone any significant changes since December 31, 2024[45](index=45&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) Other than those disclosed in the notes to the condensed consolidated interim financial statements, the Group has no contingent liabilities - Other than those disclosed in the notes to the condensed consolidated interim financial statements, the Group has no contingent liabilities (as at December 31, 2024: nil)[46](index=46&type=chunk) [Pledge of Assets](index=19&type=section&id=Pledge%20of%20Assets) Certain bank accounts of CNNC International Group Limited, a wholly-owned subsidiary of the Company, have been pledged to secure bank facilities granted to the Group for its uranium trading business - Certain bank accounts of CNNC International Group Limited, a wholly-owned subsidiary of the Company, have been pledged to secure bank facilities granted to the Group for its uranium trading business[47](index=47&type=chunk) [Significant Events After Reporting Period](index=19&type=section&id=Significant%20Events%20After%20Reporting%20Period) As of the date of this announcement, the Directors are not aware of any significant events concerning the Company's business or financial performance after the review period - Other than as disclosed above, up to the date of this announcement, the Directors are not aware of any significant events concerning the Company's business or financial performance after the review period[48](index=48&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the review period - The Board of Directors does not recommend the payment of an interim dividend for the review period (corresponding period in 2024: nil)[49](index=49&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including the sale of any treasury shares, if any)[50](index=50&type=chunk) [Corporate Governance Practices](index=20&type=section&id=Corporate%20Governance%20Practices) The Company has consistently complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the review period - The Company has consistently complied with all applicable code provisions contained in the Corporate Governance Code (the "CG Code") in Appendix C1 of the Listing Rules throughout the review period[51](index=51&type=chunk) [Standard Code for Securities Transactions by Directors](index=20&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct no less stringent than the Standard Code in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance with it - The Company has adopted a code of conduct for Directors' securities transactions, with terms no less stringent than those stipulated in the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") contained in Appendix C3 of the Listing Rules. Following specific enquiries with all Directors, all Directors confirmed that they have complied with the standards set out in the Model Code and the Company's adopted code of conduct for Directors' securities transactions during the review period[52](index=52&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors and one non-executive director, is responsible for reviewing and overseeing financial reporting processes and internal controls, and has reviewed the interim financial statements for this period - The Audit Committee comprises three independent non-executive Directors, Mr. Chan Yee Hoi, Mr. Cui Liguo, and Ms. Liu Yajie, and one non-executive Director, Mr. Wu Ge. Mr. Chan Yee Hoi serves as the Chairman of the Audit Committee[53](index=53&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, and is of the opinion that the interim financial statements have been prepared in accordance with applicable accounting standards, rules, and regulations, with proper and adequate disclosures[53](index=53&type=chunk) [Remuneration Committee](index=20&type=section&id=Remuneration%20Committee) The Remuneration Committee, composed of three independent non-executive directors, one executive director, and one non-executive director, is responsible for determining directors' remuneration - The Remuneration Committee comprises three independent non-executive Directors, Mr. Cui Liguo, Mr. Chan Yee Hoi, and Ms. Liu Yajie, one executive Director, Mr. Zhang Yi, and one non-executive Director, Mr. Wu Ge. Mr. Cui Liguo serves as the Chairman of the Remuneration Committee[54](index=54&type=chunk) [Nomination Committee](index=21&type=section&id=Nomination%20Committee) The Nomination Committee, consisting of three independent non-executive directors, one executive director, and one non-executive director, is responsible for reviewing the Board structure and identifying qualified Board members - The Nomination Committee comprises three independent non-executive Directors, Mr. Cui Liguo, Mr. Chan Yee Hoi, and Ms. Liu Yajie, one executive Director, Mr. Zhang Yi, and one non-executive Director, Mr. Wang Cheng. Mr. Wang Cheng serves as the Chairman of the Nomination Committee[55](index=55&type=chunk) [Disclosure of Information](index=21&type=section&id=Disclosure%20of%20Information) The electronic version of this announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and posted in due course - The electronic version of this announcement is published on the HKEX website (http://www.hkexnews.hk) and the Company's website (http://www.cnncintl.com)[56](index=56&type=chunk) - The Company will dispatch and post its interim report for the six months ended June 30, 2025, containing all information required by Appendix D2 of the Listing Rules, to shareholders and on the aforementioned HKEX and Company websites in due course[56](index=56&type=chunk) [Acknowledgements](index=21&type=section&id=Acknowledgements) The Board of Directors extends its sincere gratitude to shareholders, management, and all staff for their tireless efforts and strong support - The Board of Directors takes this opportunity to express its sincere gratitude to the shareholders, management, and all staff for their tireless efforts and strong support[57](index=57&type=chunk) [Board of Directors](index=21&type=section&id=Board%20of%20Directors) As of this announcement date, the Board of Directors comprises Mr. Wang Cheng (Non-executive Director and Chairman), Mr. Zhang Yi (Executive Director and CEO), Mr. Wu Ge and Mr. Sun Ruofan (Non-executive Directors), and Mr. Cui Liguo, Mr. Chan Yee Hoi, and Ms. Liu Yajie (Independent Non-executive Directors) - As of the date of this announcement, the Board of Directors includes Non-executive Director and Chairman: Mr. Wang Cheng; Executive Director and Chief Executive Officer: Mr. Zhang Yi; Non-executive Directors: Mr. Wu Ge and Mr. Sun Ruofan; and Independent Non-executive Directors: Mr. Cui Liguo, Mr. Chan Yee Hoi, and Ms. Liu Yajie[58](index=58&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 67.3 million, a decrease of 18.2% compared to RMB 82.3 million in the same period of 2024[2] - Gross profit for the same period was RMB 35.8 million, down 28.0% from RMB 49.7 million year-on-year[2] - Operating loss increased by 5.1% to RMB 51.3 million, compared to RMB 48.8 million in the previous year[2] - The gross profit margin decreased by 7.2 percentage points to 53.2% from 60.4%[2] - Basic loss per share was RMB (1.34), an increase of 3.9% from RMB (1.29) in the prior year[3] - The company reported a net loss of RMB 46.1 million for the period, compared to RMB 42.7 million in the same period last year[4] - The group reported a pre-tax loss of RMB 46,063,000 for the six months ended June 30, 2025, compared to a loss of RMB 42,396,000 for the same period in 2024[32][33] - The company reported a pre-tax loss of RMB 46.2 million in 2025, compared to a pre-tax loss of RMB 42.7 million in 2024[58] - The net loss attributable to equity holders increased from RMB 42.4 million in 2024 to RMB 46.1 million in 2025, an increase of approximately 8.7%[59] Assets and Liabilities - Total assets less current liabilities amounted to RMB 955.4 million, a decrease from RMB 982.0 million as of December 31, 2024[5] - Total assets as of June 30, 2025, amounted to RMB 1,149,019,000, reflecting a decrease from RMB 1,290,705,000 as of June 30, 2024[18] - The company’s total liabilities as of June 30, 2025, were RMB 202,477,000, a decrease from RMB 259,608,000 as of June 30, 2024[18] - Non-current assets decreased to RMB 388.5 million from RMB 433.6 million as of December 31, 2024[5] - Current assets net value increased from RMB 548.4 million at the end of 2024 to RMB 566.9 million by mid-2025[63] Cash Flow - Cash and cash equivalents increased to RMB 176.3 million from RMB 100.8 million at the end of 2024[5] - Cash and cash equivalents rose from RMB 333.4 million at the end of 2024 to RMB 385.7 million by mid-2025[64] - Net cash flow from operating activities decreased from RMB 1.2 million in the six months ended June 30, 2024, to a cash outflow of RMB 3.0 million in the current period, primarily due to changes in working capital[66] - Net cash flow from investing activities amounted to RMB 74.8 million, driven by proceeds from the sale of equity investments totaling RMB 45.3 million and withdrawals from short-term deposits of RMB 23.4 million[67] - Net cash flow used in financing activities was RMB 0.9 million, mainly due to principal payments on lease liabilities of RMB 2.8 million[68] Revenue Breakdown - Revenue from customer contracts for the six months ended June 30, 2025, was RMB 67,316,000, a decrease of 18.2% compared to RMB 82,264,000 for the same period in 2024[22][23] - Revenue from self-operated retail points decreased from RMB 66.4 million to RMB 53.2 million, a decline of about 19.9%, accounting for approximately 79.0% of total revenue[45] - Revenue from sales to third-party retailers increased from RMB 4.0 million to RMB 5.5 million, an increase of approximately 37.5%, representing about 8.2% of total revenue[45] - Online sales revenue decreased from RMB 11.9 million to RMB 8.6 million, a decline of approximately 27.7%, accounting for about 12.8% of total revenue[46] - Revenue from proprietary brands fell from RMB 56.1 million in 2024 to RMB 50.3 million in 2025, a decline of approximately 10.3%, while the percentage of total revenue increased from 68.2% to 74.7%[49] Expenses and Costs - The cost of goods sold for the six months ended June 30, 2025, was RMB 17,414,000, an increase of 12.6% from RMB 15,461,000 in 2024[27] - Other income for the six months ended June 30, 2025, totaled RMB 11,128,000, down 22.8% from RMB 14,287,000 in the prior year[25] - Other income and gains fell from RMB 14.3 million in 2024 to RMB 11.1 million in 2025, a decrease of about 22.4%[53] - Administrative expenses decreased from RMB 27.6 million in 2024 to RMB 24.0 million in 2025, a decline of approximately 13.0%[56] Inventory and Receivables - Inventory as of June 30, 2025, was RMB 81,935,000, a decrease of 15.3% from RMB 96,707,000 as of December 31, 2024[34] - Accounts receivable decreased from RMB 28,182 thousand as of December 31, 2024, to RMB 18,292 thousand as of June 30, 2025, representing a decline of approximately 35.2%[35] - The impairment loss on accounts receivable decreased from RMB 11,150 thousand as of December 31, 2024, to RMB 8,656 thousand as of June 30, 2025, a reduction of about 22.4%[37] Operational Focus and Strategy - The company continues to focus on its core business in apparel design, production, marketing, and sales, with no significant changes in operations during the reporting period[7] - The company has established a credit control department to minimize credit risk associated with accounts receivable[35] - The company continues to expand its digital marketing efforts, including the establishment of a digital marketing department and the use of AI-generated content to enhance marketing efficiency[76] Investments and Partnerships - Guangdong Junrui invested a total of RMB 52 million in a partnership, with contributions of RMB 50 million from Guangdong Junrui, RMB 1 million from Guangdong Yida, and RMB 1 million from Zhuhai Xinpao[81] - The 2024 partnership will focus on investing in sectors such as new generation information technology, new energy, and biomedicine, aiming to diversify the company's business and revenue sources[83] - In April 2025, the company sold a total of 6,142,839 shares of Guangdong Shaoneng Group Co., Ltd. for approximately RMB 43.88 million[84] - The company plans to invest RMB 10 million in a technology company focused on developing chemical materials, with potential applications in functional clothing[85] Employee and Corporate Governance - The total employee cost for the reporting period was RMB 92 million, compared to RMB 153 million for the six months ending June 30, 2024[87] - The board does not recommend any interim dividend for the reporting period[90] - The company expresses gratitude to employees for their hard work and loyalty during challenging times[98] - The board of directors acknowledges the continuous support from shareholders, customers, suppliers, and business partners[99] - The executive directors include Mr. Zhang Yongli, Mr. Sun Ruwei, and Ms. Huang Xiaoyun, with non-executive and independent directors listed[100]

[Condensed Consolidated Performance Overview](index=1&type=section&id=Condensed%20Consolidated%20Performance%20Overview) This section presents a concise overview of the Group's interim financial performance, including profit or loss and financial position statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group experienced an **8.9%** revenue decline and **20.6%** profit decrease, despite a gross margin improvement to **20.9%** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (thousand Ringgit) | Metric | June 30, 2025 (thousand Ringgit) | June 30, 2024 (thousand Ringgit) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 214,655 | 235,564 | -8.9% | | Cost of services rendered and goods sold | (169,733) | (189,642) | -10.5% | | Gross Profit | 44,922 | 45,922 | -2.2% | | Other income | 1,333 | 1,097 | +21.5% | | Administrative and other operating expenses | (20,162) | (16,828) | +19.8% | | Finance costs | (6,725) | (5,767) | +16.6% | | Profit before tax | 19,484 | 24,673 | -21.1% | | Income tax expense | (3,211) | (4,176) | -23.1% | | Profit for the period | 16,273 | 20,497 | -20.6% | | Profit for the period attributable to owners of the Company | 16,262 | 19,230 | -15.4% | | Basic and diluted earnings per share | 0.79 Ringgit sen | 0.93 Ringgit sen | -15.1% | - Gross profit margin increased from **19.5%** in the prior year to **20.9%** in 2025, indicating improved cost control or service pricing efficiency[41](index=41&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly decreased, non-current assets remained stable, and net current assets reduced, with the gearing ratio maintained at **0.68** Condensed Consolidated Statement of Financial Position (thousand Ringgit) | Metric | June 30, 2025 (thousand Ringgit) | December 31, 2024 (thousand Ringgit) | | :--- | :--- | :--- | | Non-current assets | 475,018 | 471,854 | | Current assets | 216,470 | 231,433 | | Current liabilities | 122,319 | 118,740 | | Net current assets | 94,151 | 112,693 | | Total assets less current liabilities | 569,169 | 584,547 | | Non-current liabilities | 213,175 | 221,562 | | Net assets | 355,994 | 362,985 | | Total equity | 355,994 | 362,985 | | Bank balances and cash | 30,245 | 41,878 | | Interest-bearing borrowings | 118,404 | 116,899 | | Gearing ratio | 0.68 | 0.68 | - Bank balances and cash decreased from **41,878 thousand Ringgit** as of December 31, 2024, to **30,245 thousand Ringgit** as of June 30, 2025[46](index=46&type=chunk) - The weighted average effective annual interest rate for interest-bearing borrowings slightly increased from approximately **5.01%** as of December 31, 2024, to approximately **5.05%** as of June 30, 2025[46](index=46&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the accounting policies, segment information, revenue disaggregation, and other financial notes for the interim period [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules, using the historical cost convention - The interim financial statements are presented in **Malaysian Ringgit**, with all amounts rounded to the nearest thousand[7](index=7&type=chunk) - Management's judgments, estimates, and assumptions made during preparation are consistent with the 2024 financial statements, and actual results may differ[8](index=8&type=chunk) [2. Principal Accounting Policies](index=5&type=section&id=2.%20Principal%20Accounting%20Policies) Accounting policies and calculation methods for this interim period are consistent with the 2024 financial statements, with adopted IFRS amendments having no significant impact - Adopted amendments include IAS 1 (Classification of Liabilities), IFRS 16 (Sale and Leaseback), and IAS 7/IFRS 7 (Supplier Finance Arrangements)[11](index=11&type=chunk) - Directors anticipate no significant impact on the Group's results from new/amended IFRS adoption in future periods[12](index=12&type=chunk) [3. Segment Information](index=6&type=section&id=3.%20Segment%20Information) The Group reports revenue and results across five operating segments: integrated freight forwarding, logistics center, land transport, flexibag solutions, and 4PL services, with segment assets and liabilities not regularly reviewed - The Group's key operating decision maker, the Company's Executive Director, focuses resource allocation and segment performance assessment on the type of goods delivered or services provided[13](index=13&type=chunk) - Segment results are measured by gross profit generated by each segment, excluding unallocated other income, administrative expenses, and finance costs[14](index=14&type=chunk) [3.1 Overview of Operating Segments](index=6&type=section&id=3.1%20Overview%20of%20Operating%20Segments) This section outlines the five reportable operating segments of the Group - The Group's five reportable operating segments include integrated freight forwarding services, logistics center and related services, land transport services, flexibag solutions and related services, and fourth-party logistics (4PL) services[17](index=17&type=chunk) [3.2 Segment Revenue and Performance Analysis](index=7&type=section&id=3.2%20Segment%20Revenue%20and%20Performance%20Analysis) This section provides a detailed breakdown of revenue and performance by each operating segment Revenue and Performance by Operating Segment (thousand Ringgit) | Segment | June 30, 2025 Revenue (thousand Ringgit) | June 30, 2024 Revenue (thousand Ringgit) | June 30, 2025 Segment Performance (thousand Ringgit) | June 30, 2024 Segment Performance (thousand Ringgit) | | :--- | :--- | :--- | :--- | :--- | | Integrated freight forwarding services | 44,848 | 53,242 | 9,061 | 12,811 | | Logistics center and related services | 55,667 | 45,163 | 8,318 | 5,381 | | Land transport services | 31,297 | 36,992 | 1,637 | 1,439 | | Flexibag solutions and related services | 76,540 | 94,573 | 22,721 | 23,449 | | Fourth-party logistics (4PL) services | 6,303 | 5,594 | 3,185 | 2,842 | | **Total** | **214,655** | **235,564** | **44,922** | **45,922** | - Revenue from logistics center and related services grew by **23.3%**, with segment gross profit increasing by **54.6%**, driven by higher demand for yard and warehousing services[42](index=42&type=chunk) - Revenue from flexibag solutions and related services decreased by **19.1%**, primarily due to reduced cargo volume from a major customer impacted by external supply chain disruptions[44](index=44&type=chunk) [3.3 Geographical Revenue Analysis](index=9&type=section&id=3.3%20Geographical%20Revenue%20Analysis) This section analyzes the Group's revenue distribution based on customer location Revenue by Customer Location (thousand Ringgit) | Region | June 30, 2025 (thousand Ringgit) | June 30, 2024 (thousand Ringgit) | | :--- | :--- | :--- | | Malaysia | 124,048 | 123,256 | | Singapore | 21,103 | 38,798 | | Indonesia | 14,224 | 18,487 | | South Korea | 9,274 | 10,349 | | Spain | 7,737 | 6,600 | | Thailand | 6,562 | 6,885 | | Belgium | 4,759 | 5,095 | | China | 2,583 | 140 | | Vietnam | 1,355 | 2,065 | | Netherlands | 1,319 | 2,046 | | Other | 21,691 | 21,843 | | **Total** | **214,655** | **235,564** | - Malaysia remains the primary revenue source, with significant revenue growth in the **China market**, while **Singapore** and **Indonesia** markets experienced revenue declines[21](index=21&type=chunk) [3.4 Major Customer Information](index=9&type=section&id=3.4%20Major%20Customer%20Information) This section provides information on the Group's major customers - For the six months ended June 30, 2025, and 2024, no single external customer contributed **10%** or more of the Group's total revenue[22](index=22&type=chunk) [4. Revenue Disaggregation](index=10&type=section&id=4.%20Revenue%20Disaggregation) The Group's revenue primarily derives from flexibag solutions, warehousing and container yard services, sea freight, and land transport, with flexibag revenue recognized at a point in time and other services over time Revenue from Contracts with Customers by Service Type (thousand Ringgit) | Service Type | June 30, 2025 (thousand Ringgit) | June 30, 2024 (thousand Ringgit) | | :--- | :--- | :--- | | Flexibag solutions | 76,540 | 94,573 | | Warehousing and container yard services | 53,545 | 41,314 | | Sea freight services | 25,020 | 31,383 | | Land transport income | 14,038 | 16,832 | | Land feeder services | 11,614 | 13,675 | | Freight forwarding services | 9,532 | 9,961 | | Non-vessel operating common carrier (NVOCC) services | 8,137 | 9,861 | | Fourth-party logistics (4PL) services | 6,303 | 5,594 | | Land bridge services | 5,645 | 6,485 | | Air freight services | 2,159 | 2,037 | | **Total** | **212,533** | **231,715** | - Revenue from other sources primarily includes warehouse rental income from logistics center and related services, amounting to **2,122 thousand Ringgit** in 2025 and **3,849 thousand Ringgit** in 2024[23](index=23&type=chunk) [5. Components of Profit Before Tax](index=11&type=section&id=5.%20Components%20of%20Profit%20Before%20Tax) Profit before tax is influenced by finance costs, staff costs, cost of inventories, and depreciation, with finance costs increasing by **16.6%** and staff costs by **5.6%** year-on-year Items Deducted From/Credited To Profit Before Tax (thousand Ringgit) | Item | June 30, 2025 (thousand Ringgit) | June 30, 2024 (thousand Ringgit) | | :--- | :--- | :--- | | Finance costs | 6,725 | 5,767 | | - Interest on bank overdrafts | 123 | 161 | | - Interest on interest-bearing borrowings | 2,645 | 2,909 | | - Interest on lease liabilities | 3,957 | 2,697 | | Total staff costs | 34,478 | 32,656 | | Cost of inventories | 53,820 | 71,124 | | Depreciation | 14,612 | 13,211 | | Net exchange (gain) loss | (376) | 640 | | Gain on disposal of property, plant and equipment | (225) | (351) | - Interest on lease liabilities significantly increased from **2,697 thousand Ringgit** in the prior year to **3,957 thousand Ringgit** in 2025[25](index=25&type=chunk) - Cost of inventories decreased significantly by **24.3%** year-on-year, from **71,124 thousand Ringgit** to **53,820 thousand Ringgit**[26](index=26&type=chunk) [6. Income Tax Expense](index=12&type=section&id=6.%20Income%20Tax%20Expense) The Group's income tax expense primarily comprises Malaysian corporate income tax at a standard rate of **24%**, with some Malaysian subsidiaries enjoying investment tax allowances and Cayman Islands/BVI entities being exempt Income Tax Expense (thousand Ringgit) | Item | June 30, 2025 (thousand Ringgit) | June 30, 2024 (thousand Ringgit) | | :--- | :--- | :--- | | Malaysian corporate income tax | 3,211 | 4,176 | - Infinity Logistics & Transport Sdn Bhd. (MY) has been granted an investment tax allowance since September 9, 2021, allowing it to offset **70%** of its statutory income[28](index=28&type=chunk) - Entities registered in Labuan, Malaysia, are subject to corporate income tax at a rate of **3%**, while Spanish entities are taxed at **25%**[28](index=28&type=chunk)[29](index=29&type=chunk) [7. Earnings Per Share](index=13&type=section&id=7.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the Company decreased to **0.79 Ringgit sen** from **0.93 Ringgit sen** in the prior year Earnings Per Share Calculation (thousand Ringgit) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (thousand Ringgit) | 16,262 | 19,230 | | Weighted average number of ordinary shares | 2,064,000,000 | 2,064,000,000 | | Basic and diluted earnings per share (Ringgit sen) | 0.79 | 0.93 | - Diluted earnings per share are the same as basic earnings per share due to the absence of potential dilutive ordinary shares[31](index=31&type=chunk) [8. Dividends](index=14&type=section&id=8.%20Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, and 2024 - The Company's directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025, and 2024[32](index=32&type=chunk) [9. Trade and Other Receivables](index=14&type=section&id=9.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased to **147,816 thousand Ringgit**, with trade receivables slightly increasing while other receivables, particularly prepayments, significantly reduced Trade and Other Receivables (thousand Ringgit) | Item | June 30, 2025 (thousand Ringgit) | December 31, 2024 (thousand Ringgit) | | :--- | :--- | :--- | | Trade receivables (net) | 97,255 | 95,059 | | Other receivables | 50,561 | 59,793 | | - Deposits paid | 3,377 | 3,429 | | - Payments made on behalf of a 4PL customer | 41,695 | 43,428 | | - Prepayments | 4,444 | 11,888 | | **Total** | **147,816** | **154,852** | Ageing Analysis of Trade Receivables (thousand Ringgit) | Ageing | June 30, 2025 (thousand Ringgit) | December 31, 2024 (thousand Ringgit) | | :--- | :--- | :--- | | Within 30 days | 40,814 | 37,326 | | 31 to 90 days | 26,181 | 51,493 | | Over 90 days | 32,608 | 8,538 | | **Total** | **99,603** | **97,357** | | Less: Loss allowance | (2,348) | (2,298) | - Trade receivables over **90 days** significantly increased from **8,538 thousand Ringgit** as of December 31, 2024, to **32,608 thousand Ringgit** as of June 30, 2025, indicating a potential extension in the collection cycle[37](index=37&type=chunk) [10. Trade and Other Payables](index=15&type=section&id=10.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased to **81,865 thousand Ringgit**, with a notable reduction in salaries and bonuses payable within other payables Trade and Other Payables (thousand Ringgit) | Item | June 30, 2025 (thousand Ringgit) | December 31, 2024 (thousand Ringgit) | | :--- | :--- | :--- | | Trade payables | 40,540 | 39,736 | | Other payables | 41,325 | 47,635 | | - Salaries and other benefits payable | 795 | 1,265 | | - Bonuses payable | 7,977 | 10,463 | | - Other accrued expenses and other payables | 25,001 | 28,682 | | **Total** | **81,865** | **87,371** | Ageing Analysis of Trade Payables (thousand Ringgit) | Ageing | June 30, 2025 (thousand Ringgit) | December 31, 2024 (thousand Ringgit) | | :--- | :--- | :--- | | Within 30 days | 28,771 | 28,513 | | 31 to 90 days | 3,648 | 4,826 | | Over 90 days | 8,121 | 6,397 | | **Total** | **40,540** | **39,736** | - The maximum credit period for trade payables is **30 days**[40](index=40&type=chunk) [11. Share Capital](index=16&type=section&id=11.%20Share%20Capital) As of June 30, 2025, the Company's authorized share capital is **HKD 150,000,000**, and issued and fully paid share capital is **HKD 20,640,000**, equivalent to **10,865,975 thousand Ringgit**, unchanged from December 31, 2024 Share Capital Information | Item | Number of Shares | Hong Kong Dollar | Ringgit Equivalent Amount (thousand Ringgit) | | :--- | :--- | :--- | :--- | | Authorized share capital (ordinary shares of HKD 0.01 each) | 15,000,000,000 | 150,000,000 | 80,213,900 | | Issued and fully paid share capital (ordinary shares of HKD 0.01 each) | 2,064,000,000 | 20,640,000 | 10,865,975 | - The Company's share capital structure remained unchanged for the six months ended June 30, 2025[46](index=46&type=chunk) [Management Discussion and Analysis and Other Information](index=17&type=section&id=Management%20Discussion%20and%20Analysis%20and%20Other%20Information) This section provides management's review of financial performance, business operations, future outlook, treasury policies, and corporate governance [Financial Review](index=17&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's revenue and gross profit decreased year-on-year, but gross margin improved, while net profit for the period declined by **20.6%** Key Financial Indicators Comparison (thousand Ringgit) | Metric | June 30, 2025 (thousand Ringgit) | June 30, 2024 (thousand Ringgit) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 214,655 | 235,564 | -8.9% | | Gross Profit | 44,922 | 45,922 | -2.2% | | Gross Profit Margin | 20.9% | 19.5% | +1.4 percentage points | | Net Profit | 16,273 | 20,497 | -20.6% | [Business Review](index=17&type=section&id=Business%20Review) The Group generates revenue through a diversified portfolio of integrated logistics services, with significant growth in logistics center services and declines in integrated freight forwarding and flexibag solutions - Revenue from logistics center and related services grew by **23.3%** to **55,667 thousand Ringgit**, with gross profit increasing by **54.6%** to **8,318 thousand Ringgit**, driven by higher demand for yard and warehousing services[42](index=42&type=chunk) - Land transport services revenue decreased by **15.4%** to **31,297 thousand Ringgit**, but gross profit increased by **13.8%** to **1,637 thousand Ringgit**, benefiting from improved margins on other customer orders[42](index=42&type=chunk) - Integrated freight forwarding services revenue decreased by **15.8%** to **44,848 thousand Ringgit**, with gross profit declining by **29.3%** to **9,061 thousand Ringgit**, mainly due to reduced sea freight volume[43](index=43&type=chunk) - Revenue from flexibag solutions and related services decreased by **19.1%** to **76,540 thousand Ringgit**, primarily impacted by external supply chain disruptions[44](index=44&type=chunk) - Fourth-party logistics (4PL) services revenue increased by **12.7%** to **6,303 thousand Ringgit**, with gross profit growing by **12.1%** to **3,185 thousand Ringgit**[44](index=44&type=chunk) [Outlook](index=18&type=section&id=Outlook) For the second half of 2025, the Group aims to drive sustainable development, strengthen ESG principles, enhance employee skills and workplace safety, and reinforce its governance structure, viewing market volatility and tariff changes as opportunities for adaptation and innovation - The Group integrates quantifiable and responsible Environmental, Social, and Governance (ESG) principles into its operations and decision-making as a core value for sustainable development[45](index=45&type=chunk) - Through collaboration with the Human Resources Development Corporation of Malaysia, the Group actively enhances employee skills and retraining, while strengthening its commitment to workplace safety[45](index=45&type=chunk) - Despite tariff changes affecting the logistics industry, the Group's cargo volume continues to grow, and it is prepared to meet challenges and seize opportunities for sustained growth[45](index=45&type=chunk) [Treasury Policy](index=19&type=section&id=Treasury%20Policy) The Group maintains a prudent financial and surplus fund management approach, ensuring a healthy liquidity position and minimizing credit risk through continuous credit assessment, with the Board closely monitoring liquidity to meet financing needs - The Group's working capital is primarily funded by internal cash flows and bank facilities provided by Malaysian banking partners[46](index=46&type=chunk) - The Directors believe that the Group's cash position, value of current assets, future earnings, and available bank facilities are sufficient to meet working capital requirements[46](index=46&type=chunk) [Hedging and Foreign Exchange Risk](index=19&type=section&id=Hedging%20and%20Foreign%20Exchange%20Risk) The Group's transactions, assets, and liabilities are primarily denominated in Ringgit, US Dollar, Euro, and Hong Kong Dollar, and it does not use financial instruments for hedging due to insignificant anticipated exchange rate risk - For the six months ended June 30, 2025, the Group did not use financial instruments for hedging purposes, nor did it use any financial instruments to hedge foreign exchange risk[48](index=48&type=chunk) - The Directors and senior management will continue to monitor foreign exchange risk and consider using applicable derivative instruments when necessary[48](index=48&type=chunk) [Pledged Assets](index=20&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group's leasehold land, buildings, and machinery with a total carrying amount of approximately **127,960 thousand Ringgit** have been pledged to secure banking facilities Carrying Amount of Pledged Assets (thousand Ringgit) | Date | Carrying Amount (thousand Ringgit) | | :--- | :--- | | June 30, 2025 | 127,960 | | December 31, 2024 | 137,942 | [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group has no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[50](index=50&type=chunk) [Material Events After Reporting Date](index=20&type=section&id=Material%20Events%20After%20Reporting%20Date) Except as disclosed elsewhere in this announcement, no material events affecting the Group have occurred after June 30, 2025, and up to the date of this announcement - As of the date of this announcement, no material events affecting the Group have occurred[51](index=51&type=chunk) [Employee Information](index=20&type=section&id=Employee%20Information) As of June 30, 2025, the Group employed **1,128** individuals, with staff costs totaling approximately **34,478 thousand Ringgit**, committed to attracting and retaining top talent through competitive remuneration and bonuses Employee Count and Costs | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Employees | 1,128 | 1,035 | | Staff Costs (thousand Ringgit) | 34,478 | 32,656 | - The Group has employees in **Malaysia**, **Spain**, and **Singapore**[52](index=52&type=chunk) - The Group offers competitive remuneration packages and bonuses based on qualifications and performance to attract and retain talent[52](index=52&type=chunk) [Interim Dividends](index=20&type=section&id=Interim%20Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[53](index=53&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) The Company is committed to best corporate governance practices and complies with the CG Code in Appendix C1 Part 2 of the HKEX Listing Rules, with some deviations regarding independent non-executive director attendance, chairman/CEO roles, board meeting frequency, and company secretary contact disclosure - Independent Non-Executive Director Datin Paduka TPr. Noraini Binti Roslan was unable to attend the Annual General Meeting on May 20, 2025, due to other commitments, deviating from Code Provision C.1.5[55](index=55&type=chunk) - Dato' Seri Chan Kong Yew holds both Chairman and Chief Executive Officer roles, deviating from Code Provision C.2.1, but the Board believes this arrangement is in the Group's best interest[55](index=55&type=chunk) - Only one regular Board meeting was held during the period, deviating from Code Provision C.5.1's requirement of at least four meetings annually, as the company does not announce quarterly results[56](index=56&type=chunk) - Mr. Lau Wai Piu, the Company Secretary, is an external service provider, and Dato' Seri Chan is designated as the contact person, complying with Code Provision C.6.1[56](index=56&type=chunk) - The Company's Directors confirm full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the relevant period[58](index=58&type=chunk) [Audit Committee](index=22&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors chaired by Dato' Che Nazli Binti Jaapar, assists the Board in corporate governance, financial reporting, and internal control, and has reviewed these interim results - The Audit Committee's primary responsibilities include maintaining auditor relations, reviewing financial information, and overseeing the financial reporting system[59](index=59&type=chunk) - Audit Committee Chairman Dato' Che Nazli Binti Jaapar possesses the appropriate professional accounting qualifications and financial management expertise as required by the Listing Rules[59](index=59&type=chunk) [Share Transactions](index=22&type=section&id=Share%20Transactions) During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held as of June 30, 2025 - During the relevant period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[60](index=60&type=chunk) - As of June 30, 2025, the Company held no treasury shares[60](index=60&type=chunk) [Acknowledgements](index=22&type=section&id=Acknowledgements) The Board of Directors extends sincere gratitude to all employees, shareholders, and investors - The Board of Directors expresses sincere gratitude to all employees for their dedication and contributions to the Group, and also thanks shareholders and investors for their strong support[61](index=61&type=chunk) [Board of Directors](index=22&type=section&id=Board%20of%20Directors) The Company's Board of Directors consists of four executive directors and three independent non-executive directors - Executive Directors include Dato' Seri Chan Kong Yew (Chairman), Dato' Kwan Siew Deeg, Datin Seri Lo Shing Ping, and Mr. Yap Sheng Feng[63](index=63&type=chunk) - Independent Non-Executive Directors include Mr. Lee Chee Keong, Datin Paduka TPr. Noraini Binti Roslan, and Dato' Che Nazli Binti Jaapar[63](index=63&type=chunk)