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，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Beauty Farm Medical and Health Industry Inc. 美麗田園醫療健康產業有限公司 * （於開曼群島註冊成立的有限公 司） （股份代號：2373） 截至2025年6月30日止六個月中期業績公告 董事會欣然宣佈本集團截至2025年6月30日止六個月的未經審核簡明綜合中期業績，連 同如下2024年同期的比較數字。該等中期業績已由審核委員會及本公司管理層審閱。 於本公告內，「我們」指本公司及倘文義另有指明，則指本集團。 | 業績概要 | | | | | --- | --- | --- | --- | | | | 截至6月30日止六個月 | | | | 2025年 | 2024年 | 變動 | | | 人民幣千元 (i) | 人民幣千元 (i) | | | | （未經審核） | （未經審核） | | | 直營門店客流 | 918,069 | 621,136 | 47.8% | ...

Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 90,412,000, representing an increase of 13.8% compared to HKD 79,612,000 for the same period last year[4] - Gross profit for the same period was HKD 33,161,000, up 18.5% from HKD 27,936,000 year-on-year[4] - The company reported a net profit attributable to owners of HKD 5,270,000, compared to a loss of HKD 9,461,000 in the previous year, indicating a significant turnaround[4] - Revenue for the six months ended June 30, 2025, reached HKD 90,412,000, an increase of 13.5% compared to HKD 79,612,000 for the same period in 2024[12] - The group reported a segment profit of HKD 17,765,000 from the backend semiconductor transmission medium segment, while the MEMS and sensor packaging segment incurred a loss of HKD 248,000[17] - The group recorded a profit of HKD 5.3 million for the period, compared to a loss of HKD 9.5 million in the same period last year[57] Assets and Liabilities - Total assets as of June 30, 2025, amounted to HKD 133,539,000, an increase from HKD 125,026,000 in the previous year[5] - Non-current assets increased to HKD 80,016,000 from HKD 69,852,000, reflecting a growth of 14.5%[5] - The group’s total liabilities, including lease liabilities, amounted to HKD 9,176,000, compared to HKD 8,671,000 in the previous period[8] - The total net asset value increased to HKD 78,910,000 as of June 30, 2025, compared to HKD 73,786,000 at the end of 2024, representing a growth of 6.1%[8] - The group’s total equity rose to HKD 78,910,000, up from HKD 73,786,000, indicating a 6.1% increase[8] Cash Flow and Expenses - The company’s cash and cash equivalents decreased to HKD 3,876,000 from HKD 7,541,000, indicating a reduction of 48.6%[5] - Administrative expenses rose to HKD 15,944,000 from HKD 13,943,000, reflecting an increase of 14.4%[4] - The total employee costs for the six months ended June 30, 2025, were HKD 33,784,000, compared to HKD 32,584,000 in the previous period[24] - Depreciation of property, plant, and equipment for the six months ended June 30, 2025, was HKD 3,995,000, an increase from HKD 3,386,000 in the previous period[24] Revenue Sources - Sales of pallets and related products amounted to HKD 87,513,000, up from HKD 73,535,000, reflecting a growth of 18.9%[12] - Revenue from Southeast Asia was HKD 28,827,000, an increase of 10.7% from HKD 25,995,000 in the previous year[12] - Revenue from the United States market increased significantly to HKD 8,414,000, compared to HKD 3,430,000, marking a growth of 145.5%[12] - Revenue from the MEMS and sensor packaging segment was HKD 1.2 million, accounting for approximately 1.3% of total revenue[47] - Revenue from the carrier segment was HKD 1.7 million, representing about 1.9% of total revenue[48] Shareholder Information - The basic and diluted earnings per share improved to HKD 1.03 from a loss of HKD 2.4, marking a significant recovery[4] - The company declared an interim dividend of HKD 0.33 per share, totaling HKD 11,220,000, to be paid before June 30, 2024[29] - For the six months ending June 30, 2025, the company approved an interim dividend of HKD 0.6 per share, amounting to HKD 3,075,000, to be distributed on September 26, 2025[30] Research and Development - Research and development expenses for the period were HKD 1,900,000, slightly up from HKD 1,827,000, showing a commitment to innovation[4] - The company plans to enhance R&D and material engineering capabilities, allocating 3.1% or HKD 0.97 million from the net proceeds[72] Market Strategy and Future Plans - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[4] - The company plans to enhance its product portfolio in the first half of 2025, focusing on expanding production capacity in the Philippines and investing in automation in Guangdong Province[43] - The company’s production facilities in the Philippines are expected to be operational by the end of 2024, significantly enhancing its ability to meet international customer demands[43] Corporate Governance - The company does not have a separate Chairman and CEO, with Mr. Tang holding both positions, which the board believes is in the best interest of the group[76] - The audit committee consists of three independent non-executive directors, with Mr. Chan as the chairman, ensuring compliance with GEM listing rules[81] - The board of directors includes both executive and independent non-executive members, ensuring a balance of power and responsibilities[84] Compliance and Reporting - The interim financial statements have been reviewed by the external auditor, who found no issues that would lead them to believe the statements were not prepared in accordance with international financial reporting standards[82] - The interim report will be published on the Hong Kong Stock Exchange and the company's website, including all required information under GEM listing rules[83]

[Company Overview and Financial Highlights](index=1&type=section&id=I.%20Company%20Overview%20and%20Financial%20Highlights) This section provides an overview of Lingxiong Technology Group's business model and key financial performance for the period [Company Profile and Business Model](index=1&type=section&id=I.A.%20Company%20Profile%20and%20Business%20Model) Lingxiong Technology Group Co., Ltd. is a Cayman Islands-incorporated company listed on the HKEX, providing equipment full lifecycle management solutions in China - Lingxiong Technology Group Co., Ltd. (Stock Code: 2436) is incorporated in the Cayman Islands, with its shares listed on the Main Board of the Hong Kong Stock Exchange[2](index=2&type=chunk) - The Group is a leading provider of equipment full lifecycle management solutions in China, offering equipment recycling, equipment subscription, and IT technical subscription services[4](index=4&type=chunk) [Financial Summary](index=1&type=section&id=I.B.%20Financial%20Summary) For H1 2025, the Group's revenue grew by 18.5% to RMB 1,116.7 million, achieving a net profit of RMB 4.9 million and adjusted EBITDA growth of 38.5% Key Financial Data for H1 2025 (Unaudited) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,116.7 | 942.6 | Growth 18.5% | | Gross Profit | 101.9 | 92.9 | Growth 9.7% | | Net Profit | 4.9 | (40.6) | Turnaround to Profit | | Adjusted Profit | 18.6 | (22.3) | Turnaround to Profit | | Adjusted EBITDA | 194.1 | 140.2 | Growth 38.5% | [Management Discussion and Analysis](index=2&type=section&id=II.%20Management%20Discussion%20and%20Analysis) This section reviews the Group's strong H1 2025 performance, including its turnaround to profit, industry recognition, and future strategic outlook [Business Review](index=2&type=section&id=II.A.%20Business%20Review) The Group demonstrated strong development in H1 2025, achieving a turnaround to profit driven by service scale expansion, refined expense management, process optimization, and enhanced digital operational efficiency - The Group recorded a net profit of approximately **RMB 4.9 million** in H1 2025, compared to a net loss of approximately **RMB 40.6 million** in the same period of 2024, achieving a turnaround to profit[4](index=4&type=chunk) - The turnaround to profit was primarily attributable to continuous expansion of service scale, refined expense management, process optimization, and enhanced digital operational efficiency[4](index=4&type=chunk) [Overall Performance and Industry Recognition](index=2&type=section&id=II.A.1.%20Overall%20Performance%20and%20Industry%20Recognition) The company achieved significant financial improvement in H1 2025 and received multiple national industry recognitions, demonstrating its leadership in sustainable development and innovation - In January 2025, the Group was selected as one of the second batch of national service industry standardization pilot enterprises (commercial circulation special project)[5](index=5&type=chunk) - In April 2025, the Group was selected as one of the first national pilot enterprises for second-hand goods circulation, reinforcing its role in implementing national sustainable development strategies and IT equipment reuse[5](index=5&type=chunk) - In July 2025, the Group was recognized as a Shenzhen Gazelle Enterprise, reflecting its strong innovation capabilities, rapid growth momentum, and significant industry development potential[5](index=5&type=chunk) [Core Business Segment Performance](index=3&type=section&id=II.A.2.%20Core%20Business%20Segment%20Performance) The Group's three core business segments showed varied performance: equipment recycling revenue significantly increased by 24.4%, equipment subscription service revenue grew by 4.5%, while IT technical subscription service revenue slightly decreased by 0.5% [Equipment Recycling Business](index=3&type=section&id=II.A.2.a.%20Equipment%20Recycling%20Business) Equipment recycling business revenue significantly increased by 24.4% year-on-year to RMB 848.1 million, primarily driven by a 19.9% increase in customer numbers and a 3.7% growth in average revenue per customer Key Operating Data for Equipment Recycling Business | Metric | H1 2025 | H1 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue (RMB million) | 848.1 | 681.9 | 24.4% | | Number of Devices Sold (units) | 424,710 | 449,029 | -5.4% | | Number of Equipment Recycling Customers | 1,570 | 1,309 | 19.9% | | Average Revenue per Equipment Recycling Customer (RMB) | 540,206 | 520,896 | 3.7% | - The equipment recycling business provides the Group with a stable source of retired equipment, which is then refurbished for equipment subscription services or sold through proprietary quotation platforms[8](index=8&type=chunk) [Equipment Subscription Services](index=4&type=section&id=II.A.2.b.%20Equipment%20Subscription%20Services) Equipment subscription business revenue grew by 4.5% to RMB 191.9 million, primarily driven by an 11.7% increase in total equipment subscription volume, with second-hand equipment outperforming new equipment Equipment Subscription Service Revenue and Subscription Volume | Metric | H1 2025 | H1 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue (RMB thousand) | 191,914 | 183,730 | 4.5% | | - New Equipment Revenue | 154,945 | 151,551 | 2.2% | | - Second-hand Equipment Revenue | 36,969 | 32,179 | 14.9% | | Total Equipment Subscription Volume (units) | 3,475,364 | 3,112,036 | 11.7% | | - New Equipment Subscription Volume | 2,803,650 | 2,505,320 | 11.9% | | - Second-hand Equipment Subscription Volume | 671,714 | 606,716 | 10.7% | - Equipment subscription services primarily include IT equipment selection, assembly, pre-installation configuration, and customized system settings, offering short-term and long-term subscription services targeting SMEs[8](index=8&type=chunk) [IT Technical Subscription Services](index=4&type=section&id=II.A.2.c.%20IT%20Technical%20Subscription%20Services) IT technical subscription service revenue slightly decreased by 0.5% to RMB 76.6 million, primarily due to a slight decline in business opportunities, with short-term subscriptions decreasing and long-term subscriptions slightly increasing IT Technical Subscription Service Revenue | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Growth Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 76,633 | 77,015 | -0.5% | | - Long-term Subscription | 59,608 | 58,685 | 1.6% | | - Short-term Subscription | 17,025 | 18,330 | -7.1% | - IT technical subscription services primarily complement equipment subscription services, and also independently provide IT equipment troubleshooting and system upgrade services[8](index=8&type=chunk) [Future Outlook](index=5&type=section&id=II.B.%20Future%20Outlook) The Group is confident in its future growth, aiming to solidify its IT equipment full lifecycle service platform through network expansion, digitalization, industry standardization, and sustainable practices - The Group will continue to expand its service network, further broaden its layout in key regional markets, and enhance operational efficiency[12](index=12&type=chunk) - Accelerate the deployment of data-driven tools and automation technologies to support high-quality, standardized service delivery[12](index=12&type=chunk) - Actively participate in national pilot projects to set industry standards, gain first-mover advantage, and deepen environmental practices to promote reliable reuse of IT equipment[12](index=12&type=chunk) [Financial Review](index=6&type=section&id=III.%20Financial%20Review) This section provides a detailed financial review, covering revenue, cost, profit, balance sheet, liquidity, and other financial information [Revenue Analysis](index=6&type=section&id=III.A.%20Revenue%20Analysis) The Group's total revenue for H1 2025 increased by 18.5% to RMB 1,116.7 million, primarily driven by growth in equipment recycling and equipment subscription services, with equipment recycling being the largest revenue source - Total revenue for the period was approximately **RMB 1,116.7 million**, an increase of approximately **18.5%** compared to the same period in 2024[13](index=13&type=chunk) - Revenue growth was primarily attributable to sales growth in the equipment recycling business segment and equipment subscription services segment[13](index=13&type=chunk) [Revenue Overview and Composition](index=6&type=section&id=III.A.1.%20Revenue%20Overview%20and%20Composition) The Group's revenue primarily derives from equipment recycling, equipment subscription, and IT technical subscription services, with equipment recycling accounting for the largest share at 76.0% and experiencing the fastest growth Revenue Breakdown by Service Line | Service Line | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 848,124 | 76.0 | 681,853 | 72.3 | 24.4 | | Equipment Subscription Services | 191,914 | 17.2 | 183,730 | 19.5 | 4.5 | | IT Technical Subscription Services | 76,633 | 6.8 | 77,015 | 8.2 | -0.5 | | **Total** | **1,116,671** | **100** | **942,598** | **100** | **18.5** | [Revenue Details by Business Line](index=6&type=section&id=III.A.2.%20Revenue%20Details%20by%20Business%20Line) Equipment recycling revenue increased due to more customers and higher average revenue, particularly from higher-priced IT equipment sales; equipment subscription revenue grew with increased subscription volume, while IT technical subscription revenue slightly declined due to fewer business opportunities - The increase in equipment recycling revenue was primarily due to an increase in the number of equipment recycling customers from **1,309** to **1,570**, an increase in average revenue per customer from **RMB 520,896** to **RMB 540,206**, and an increased proportion of higher-priced laptops and other IT equipment sold[14](index=14&type=chunk) - The increase in revenue from equipment subscription services was primarily due to an increase in total equipment subscription volume from **3,112,036 units** to **3,475,364 units**[16](index=16&type=chunk) - The slight decrease in revenue from IT technical subscription services was primarily due to a slight decline in business opportunities identified by the IT technical subscription services segment[17](index=17&type=chunk) Equipment Recycling Business Revenue by IT Device Type | IT Device Type | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Tablets and Mobile Phones | 413,813 | 48.8 | 470,348 | 69.0 | -12.0 | | Laptops and Other IT Equipment | 434,311 | 51.2 | 211,505 | 31.0 | 105.3 | | **Total** | **848,124** | **100** | **681,853** | **100** | **24.4** | [Regional Revenue Distribution](index=8&type=section&id=III.A.3.%20Regional%20Revenue%20Distribution) Shenzhen remains the Group's largest revenue source, accounting for 80.0% of total revenue, though its share slightly decreased, while Shanghai's revenue grew significantly, increasing its share from 5.8% to 8.5% Revenue Breakdown by Geographical Location | Geographical Location | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Shenzhen | 893,391 | 80.0 | 781,815 | 82.9 | | Shanghai | 95,070 | 8.5 | 54,335 | 5.8 | | Wuhan | 20,498 | 1.8 | 20,149 | 2.1 | | Beijing | 52,570 | 4.7 | 45,115 | 4.8 | | Guangzhou | 22,068 | 2.0 | 22,154 | 2.4 | | Others | 33,074 | 3.0 | 19,030 | 2.0 | | **Total** | **1,116,671** | **100.0** | **942,598** | **100.0** | [Cost and Gross Profit Analysis](index=8&type=section&id=III.B.%20Cost%20and%20Gross%20Profit%20Analysis) Cost of sales increased in line with revenue growth, leading to a slight decrease in overall gross profit margin, while equipment subscription services saw improved margins and equipment recycling experienced a decline [Cost of Sales](index=8&type=section&id=III.B.1.%20Cost%20of%20Sales) Cost of sales for the period was approximately RMB 1,014.8 million, a year-on-year increase consistent with revenue growth, primarily due to the cost of inventories sold increasing from RMB 662.0 million to RMB 818.6 million - Cost of sales increased to approximately **RMB 1,014.8 million** from approximately **RMB 849.7 million** in the same period of 2024[19](index=19&type=chunk) - The increase in cost of sales was primarily attributable to the cost of inventories sold increasing from approximately **RMB 662.0 million** to approximately **RMB 818.6 million**[19](index=19&type=chunk) [Gross Profit and Gross Profit Margin](index=9&type=section&id=III.B.2.%20Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's gross profit increased by 9.7% to RMB 101.9 million, but the overall gross profit margin slightly decreased to 9.1%, with varied performance across service lines Gross Profit and Gross Profit Margin by Service Line | Service Line | H1 2025 Gross Profit (RMB thousand) | H1 2025 Gross Profit Margin (%) | H1 2024 Gross Profit (RMB thousand) | H1 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 4,396 | 0.5 | 7,677 | 1.1 | | Equipment Subscription Services | 51,670 | 26.9 | 39,746 | 21.6 | | IT Technical Subscription Services | 45,798 | 59.8 | 45,457 | 59.0 | | **Total** | **101,894** | **9.1** | **92,880** | **9.9** | - Gross profit margin for the equipment recycling business decreased to **0.5%**, primarily because the increase in cost of goods sold exceeded the increase in revenue[21](index=21&type=chunk) - Gross profit margin for equipment subscription services increased to **26.9%**, primarily due to revenue growth exceeding service cost growth, and the average monthly utilization rate increasing from **86.5% to 88.8%**[22](index=22&type=chunk)[23](index=23&type=chunk) - Gross profit margin for IT technical subscription services increased to **59.8%**, primarily attributable to reduced service costs due to efficiency improvement measures[24](index=24&type=chunk) [Expense and Profit Analysis](index=10&type=section&id=III.C.%20Expense%20and%20Profit%20Analysis) The Group achieved a significant turnaround to profit in H1 2025, driven by increased revenue and gross profit, coupled with effective control and reduction in operating expenses, while finance costs increased due to business expansion - A profit attributable to owners of the Company of approximately **RMB 5.7 million** was recorded for the period, compared to a loss of approximately **RMB 39.8 million** in the same period of 2024, primarily due to increased revenue and gross profit, and reduced operating expenses[31](index=31&type=chunk) [Other Income](index=10&type=section&id=III.C.1.%20Other%20Income) Other income decreased by 3.9% year-on-year to RMB 13.1 million, primarily due to a reduction in customer compensation for damaged equipment - Other income decreased by approximately **3.9%** from approximately RMB 13.6 million to approximately **RMB 13.1 million**, due to a reduction in customer compensation for damaged equipment received during the period[25](index=25&type=chunk) [Operating Expenses](index=10&type=section&id=III.C.2.%20Operating%20Expenses) The Group effectively controlled operating expenses, with distribution and selling expenses, administrative expenses, and R&D expenses all decreasing year-on-year, primarily due to refined management, utilization of internal teams, and successful R&D project delivery [Distribution and Selling Expenses](index=10&type=section&id=III.C.2.a.%20Distribution%20and%20Selling%20Expenses) Distribution and selling expenses decreased by 19.6% year-on-year to RMB 62.1 million, with its percentage of revenue falling from 8.2% to 5.6%, primarily due to refined expense management and a shift to internal sales and marketing teams - Distribution and selling expenses decreased by approximately **19.6%** from approximately RMB 77.3 million to approximately **RMB 62.1 million**[26](index=26&type=chunk) - The decrease was primarily due to reduced staff costs following the implementation of refined expense management measures, and lower promotion expenses resulting from a shift from engaging external marketing experts to utilizing internal sales and marketing teams[26](index=26&type=chunk) [Administrative Expenses](index=10&type=section&id=III.C.2.b.%20Administrative%20Expenses) Administrative expenses decreased by 9.7% year-on-year to RMB 42.5 million, with its percentage of revenue falling from 5.0% to 3.8%, primarily due to a reduction in share-based payments - Administrative expenses decreased by approximately **9.7%** from approximately RMB 47.1 million to approximately **RMB 42.5 million**, primarily due to a reduction in share-based payments of approximately **RMB 6.1 million**[27](index=27&type=chunk) [Research and Development Expenses](index=11&type=section&id=III.C.2.c.%20Research%20and%20Development%20Expenses) R&D expenses decreased by 38.0% year-on-year to RMB 9.0 million, with its percentage of revenue falling from 1.5% to 0.8%, primarily due to reduced costs from successful R&D project delivery, organizational streamlining, and productivity improvements - R&D expenses decreased by approximately **38.0%** from approximately RMB 14.5 million to approximately **RMB 9.0 million**[28](index=28&type=chunk) - The decrease was primarily due to reduced costs from the successful delivery of several R&D projects, as well as lower staff-related expenses resulting from organizational streamlining and productivity improvements[28](index=28&type=chunk) [Finance Costs and Income Tax](index=11&type=section&id=III.C.3.%20Finance%20Costs%20and%20Income%20Tax) Finance costs increased by 5.9% year-on-year to RMB 25.0 million due to increased borrowings for business expansion, while income tax credit decreased from RMB 3.5 million to RMB 0.8 million - Finance costs increased by approximately **5.9%** from approximately RMB 23.6 million to approximately **RMB 25.0 million**, due to increased borrowings for working capital to support business expansion during the period[29](index=29&type=chunk) - An income tax credit of approximately **RMB 0.8 million** was recorded for the period, compared to approximately **RMB 3.5 million** in the same period of 2024[30](index=30&type=chunk) [Net Profit and Adjusted Profit](index=11&type=section&id=III.C.4.%20Net%20Profit%20and%20Adjusted%20Profit) The Group successfully achieved a turnaround to profit, recording a profit attributable to owners of the Company of approximately RMB 5.7 million, with adjusted profit and adjusted EBITDA also showing significant improvement - A profit and total comprehensive income attributable to owners of the Company of approximately **RMB 5.7 million** was recorded for the period, compared to a loss and total comprehensive expense of approximately **RMB 39.8 million** in the same period of 2024[31](index=31&type=chunk) - Adjusted profit (non-IFRS measure) was approximately **RMB 18.6 million**, compared to an adjusted loss of approximately **RMB 22.3 million** in the same period of 2024[32](index=32&type=chunk) - Adjusted EBITDA (non-IFRS measure) increased by approximately **38.5%** from approximately RMB 140.2 million to approximately **RMB 194.1 million**[33](index=33&type=chunk) Reconciliation of Non-IFRS Measures to the Most Directly Comparable IFRS Performance Measures | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit / (Loss) for the period | 4,908 | (40,583) | | Add: Share-based payment expenses | 9,585 | 18,332 | | Add: Exchange losses / (gains) | 4,152 | (53) | | **Adjusted Profit / (Loss)** | **18,645** | **(22,304)** | | **EBITDA** | **180,392** | **121,880** | | Add: Share-based payment expenses | 9,585 | 18,332 | | Add: Exchange losses / (gains) | 4,152 | (53) | | **Adjusted EBITDA** | **194,129** | **140,159** | [Balance Sheet Analysis](index=14&type=section&id=III.D.%20Balance%20Sheet%20Analysis) As of June 30, 2025, the Group's total current assets increased by 7.8%, and the current ratio improved to 1.3 times, with significant changes in receivables, inventories, and property, plant and equipment [Current Assets](index=14&type=section&id=III.D.1.%20Current%20Assets) Total current assets were approximately RMB 962.7 million, an increase of 7.8% compared to December 31, 2024, with the current ratio improving to 1.3 times, driven by a significant decrease in trade and lease receivables and an increase in inventories - As of June 30, 2025, the Group's current assets were approximately **RMB 962.7 million**, an increase of approximately **7.8%** from approximately **RMB 893.4 million** as of December 31, 2024[37](index=37&type=chunk) - The current ratio was approximately **1.3 times** (December 31, 2024: approximately **1.2 times**)[37](index=37&type=chunk) - Inventories increased from approximately **RMB 102.8 million** to approximately **RMB 135.0 million**, primarily due to increased demand from upstream suppliers for disposal of retired IT equipment towards the end of the period[39](index=39&type=chunk) - Trade and lease receivables decreased from approximately **RMB 255.6 million** to approximately **RMB 132.0 million**, primarily due to reduced credit terms offered to customers and enhanced risk management processes[40](index=40&type=chunk) [Non-current Assets](index=14&type=section&id=III.D.2.%20Non-current%20Assets) Property, plant and equipment and right-of-use assets decreased to RMB 719.8 million, primarily due to a reduction in purchases of property, plant and equipment during the period - Property, plant and equipment and right-of-use assets decreased from approximately **RMB 743.5 million** to approximately **RMB 719.8 million**, due to a reduction in purchases of property, plant and equipment during the period compared to the same period in 2024[38](index=38&type=chunk) [Liabilities](index=14&type=section&id=III.D.3.%20Liabilities) Trade payables decreased, reflecting timely settlement, while other payables and accrued expenses increased, primarily due to higher accrued expenses - Trade payables were approximately **RMB 92.0 million**, a decrease of approximately **RMB 15.4 million** from approximately **RMB 107.4 million** as of December 31, 2024, due to timely settlement of trade payables[42](index=42&type=chunk) - Other payables and accrued expenses were approximately **RMB 74.2 million**, an increase of approximately **RMB 6.5 million** from approximately **RMB 67.7 million** as of December 31, 2024, due to an increase in accrued expenses[43](index=43&type=chunk) [Liquidity and Capital Resources](index=15&type=section&id=III.E.%20Liquidity%20and%20Capital%20Resources) The Group primarily funds its cash requirements through cash generated from operations and other debt financing, with bank balances and cash significantly increasing, and the gearing ratio remaining stable around 113% - During the period, cash requirements were primarily funded by cash generated from operations and other debt financing[44](index=44&type=chunk) [Cash and Borrowings](index=15&type=section&id=III.E.1.%20Cash%20and%20Borrowings) Bank balances and cash increased to RMB 386.2 million, primarily due to higher cash generated from business operations, while total bank and other borrowings increased to approximately RMB 852.3 million - As of June 30, 2025, bank balances and cash were approximately **RMB 386.2 million** (December 31, 2024: approximately **RMB 295.9 million**), with the increase primarily due to higher cash generated from business operations[45](index=45&type=chunk) - As of June 30, 2025, bank borrowings were approximately **RMB 550.3 million**, and other borrowings were approximately **RMB 302.0 million**, totaling approximately **RMB 852.3 million**[46](index=46&type=chunk) - Borrowings are primarily denominated in RMB, with maturities ranging from one to three years, and effective annual interest rates ranging from **3.5% to 7.7%**[46](index=46&type=chunk) [Gearing Ratio](index=16&type=section&id=III.E.2.%20Gearing%20Ratio) The gearing ratio as of June 30, 2025, was 113.1%, a slight increase from 113.0% as of December 31, 2024, indicating a largely stable leverage level - The gearing ratio was **113.1%** as of June 30, 2025 (December 31, 2024: **113.0%**)[47](index=47&type=chunk) [Other Financial Information](index=16&type=section&id=III.F.%20Other%20Financial%20Information) There were no significant investments, acquisitions, or disposals, nor any material contingent liabilities during the period, and the Group primarily settles transactions in RMB without a foreign exchange hedging policy - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[48](index=48&type=chunk) - There are no future plans for material investments or capital assets during the period, but the Group will continue to seek new business development opportunities[49](index=49&type=chunk) - As of June 30, 2025, there were no material contingent liabilities[50](index=50&type=chunk) - Most of the Group's transactions are settled in RMB, with a small portion settled in HKD and USD, and currently no foreign exchange hedging policy is adopted[51](index=51&type=chunk) [Other Information](index=17&type=section&id=IV.%20Other%20Information) This section covers employee and remuneration policies, events after the reporting period, corporate governance, and dividend policy [Employees and Remuneration Policy](index=17&type=section&id=IV.A.%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 942 full-time employees, offering competitive remuneration, performance bonuses, and other incentives, while emphasizing employee training and development to maintain a competitive edge - As of June 30, 2025, the Group had **942** full-time employees (December 31, 2024: **970** full-time employees)[52](index=52&type=chunk) - Employee remuneration (excluding directors' remuneration) was approximately **RMB 86.6 million** (same period in 2024: approximately **RMB 93.8 million**)[52](index=52&type=chunk) - The company provides employees with competitive remuneration, performance bonuses, other incentive measures, on-the-job training, and regular seminars, and has established LX Brothers and Beauty Bear employee incentive schemes[52](index=52&type=chunk) [Events After Reporting Period](index=17&type=section&id=IV.B.%20Events%20After%20Reporting%20Period) As of the date of this announcement, no other events have occurred after the reporting period that would have a material impact on the Group's operations and financial performance and require disclosure - No other events have occurred after June 30, 2025, and up to the date of this announcement that would have a material impact on the Group's operations and financial performance and require disclosure[53](index=53&type=chunk) [Corporate Governance](index=18&type=section&id=IV.C.%20Corporate%20Governance) The Group has adopted the HKEX Corporate Governance Code, and despite the Chairman and CEO roles being combined, the Board believes this arrangement serves the overall interests of the company and shareholders, with all Directors confirming compliance with securities transaction standards - The Group has adopted the Corporate Governance Code set out in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[54](index=54&type=chunk) - The roles of Chairman and Chief Executive Officer are held by Mr. Hu Zuoxiong, and the Board believes this arrangement is most appropriate, beneficial to the Group's management, and in the overall interests of the company and shareholders[54](index=54&type=chunk) - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the period[56](index=56&type=chunk) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[57](index=57&type=chunk) [Dividend Policy](index=19&type=section&id=IV.D.%20Dividend%20Policy) The Board resolved not to declare an interim dividend for the period, and the Company has not declared or paid any dividends since its incorporation, with no intention to do so since the end of the reporting period - The Board resolved not to declare an interim dividend for the period[59](index=59&type=chunk) - The Company has not declared or paid any dividends for the six months ended June 30, 2025 and 2024 since its incorporation, and does not intend to declare any dividends since the end of the reporting period[78](index=78&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=23&type=section&id=V.%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the condensed consolidated financial statements, including general information, accounting policies, revenue and expense breakdowns, taxation, and receivables/payables [General Information and Basis of Preparation](index=23&type=section&id=V.A.%20General%20Information%20and%20Basis%20of%20Preparation) The Company is incorporated in the Cayman Islands and listed on the HKEX, with its condensed consolidated financial statements prepared in RMB according to IAS 34 and Listing Rules, consistent with 2024 annual report policies - The Company is an exempted company incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[64](index=64&type=chunk) - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[66](index=66&type=chunk) - The condensed consolidated financial statements are presented in RMB, the Company's functional currency[65](index=65&type=chunk) [Accounting Policies and Segment Information](index=23&type=section&id=V.B.%20Accounting%20Policies%20and%20Segment%20Information) The Group adopted all new and revised IFRS effective January 1, 2025, without material changes, and segment information is primarily categorized by equipment recycling and equipment subscription services, with geographical data provided - The Group has adopted all new and revised International Financial Reporting Standards issued by the International Accounting Standards Board that are relevant to its operations and effective for the accounting period beginning on January 1, 2025, without material changes[67](index=67&type=chunk) - The Group's reportable segments include equipment recycling business and equipment subscription services[69](index=69&type=chunk) Revenue and Non-current Assets by Geographical Area | Region | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | Non-current Assets as of June 30, 2025 (RMB thousand) | Non-current Assets as of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | China | 1,103,867 | 942,598 | 808,298 | 796,388 | | Hong Kong | 12,804 | — | 7,276 | — | | **Total** | **1,116,671** | **942,598** | **815,574** | **796,388** | [Revenue and Expense Details](index=25&type=section&id=V.C.%20Revenue%20and%20Expense%20Details) This section details customer contract revenue types and recognition timing, along with the composition of other income (government grants, customer compensation) and finance costs (primarily interest expenses on borrowings) Disaggregation of Revenue from Contracts with Customers | Type of Goods or Services | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Equipment Recycling Revenue | 848,124 | 681,853 | | IT Technical Subscription Services | 76,633 | 77,015 | | Short-term Equipment Subscription | 23,464 | 23,830 | | **Total** | **948,221** | **782,698** | | **Timing of Revenue Recognition** | | | | At a point in time | 848,124 | 681,853 | | Over time | 100,097 | 100,845 | Other Income Details | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 1,014 | 333 | | Government grants | 9,524 | 10,082 | | Customer compensation income | 2,387 | 3,051 | | Miscellaneous income | 125 | 108 | | **Total** | **13,050** | **13,574** | Finance Costs Details | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest expense on borrowings | 24,618 | 23,050 | | Interest expense on lease liabilities | 382 | 563 | | **Total** | **25,000** | **23,613** | [Taxation and Earnings Per Share](index=27&type=section&id=V.D.%20Taxation%20and%20Earnings%20Per%20Share) The Group's Chinese subsidiaries benefit from tax incentives, including a 15% preferential tax rate for high-tech enterprises, a low tax rate for small-profit enterprises, and an R&D expense super deduction policy, contributing to a significant improvement in EPS - Lingxiong (Shenzhen), as a high-tech enterprise, renewed its qualification in November 2023, enjoying a **15%** preferential corporate income tax rate applicable for fiscal years 2023, 2024, and 2025[76](index=76&type=chunk)[77](index=77&type=chunk) - Certain PRC subsidiaries qualified as "small-profit enterprises," subject to a **5%** tax rate on profits not exceeding **RMB 3 million** (from January 1, 2023, to December 31, 2027)[77](index=77&type=chunk) - Enterprises engaged in R&D activities are entitled to claim **175%** of the R&D expenses incurred during the year as deductible expenses[77](index=77&type=chunk) Earnings / (Loss) Per Share | Metric | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings / (Loss) Per Share | 0.02 | (0.13) | | Diluted Earnings / (Loss) Per Share | 0.02 | (0.13) | [Receivables and Payables](index=29&type=section&id=V.E.%20Receivables%20and%20Payables) Trade and lease receivables significantly decreased due to shorter credit terms and enhanced risk management, while trade payables also decreased reflecting timely settlement, and other payables and accrued expenses increased due to higher accrued expenses Aging Analysis of Trade and Lease Receivables (Net of Allowance) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 107,643 | 232,594 | | Over 3 months but within 6 months | 8,269 | 7,861 | | Over 6 months but within 1 year | 9,736 | 10,626 | | Over 1 year | 6,308 | 4,542 | | **Total** | **131,956** | **255,623** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 66,371 | 101,483 | | 6 to 12 months | 21,294 | 3,127 | | Over 1 year | 4,364 | 2,772 | | **Total** | **92,029** | **107,382** | - The credit period for trade payables ranges from **0 to 90 days**[83](index=83&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 439,316 thousand, representing a 33.3% increase from RMB 329,678 thousand in the same period of 2024[5] - Gross profit for the same period was RMB 147,224 thousand, up 39.4% from RMB 105,624 thousand year-on-year[5] - Net profit for the six months ended June 30, 2025, was RMB 30,535 thousand, an increase of 23.5% compared to RMB 24,763 thousand in 2024[5] - Basic and diluted earnings per share for the period were RMB 3.46, compared to RMB 3.30 in the previous year, reflecting a 4.8% increase[5] - Total revenue for the six months ended June 30, 2025, was RMB 439,316,000, representing a 33.3% increase from RMB 329,678,000 in the same period of 2024[16] - Revenue from disposable hygiene products and non-woven fabric sales increased to RMB 389,865,000, up 34.3% from RMB 290,264,000 in the previous year[18] - Major customer A contributed RMB 189,280,000 to revenue, a significant increase of 65.5% compared to RMB 114,392,000 in the prior period[18] - The company reported a net profit before tax of RMB 6,312,000 for the six months ended June 30, 2025, compared to RMB 5,874,000 for the same period in 2024[24] - The profit attributable to the company's owners for the six months ended June 30, 2025, was RMB 30,535,000, compared to RMB 24,763,000 for the same period in 2024, representing a year-over-year increase of approximately 23.4%[27] - The company's profit for the same period rose by approximately RMB 5.7 million or 23.0% to about RMB 30.5 million, up from approximately RMB 24.8 million in the previous period[69] Assets and Liabilities - Total assets as of June 30, 2025, amounted to RMB 1,147,834 thousand, compared to RMB 590,742 thousand as of December 31, 2024, indicating a significant growth[6] - Current assets increased to RMB 461,879 thousand from RMB 302,444 thousand, marking a 52.8% rise[6] - The company's cash and cash equivalents rose to RMB 165,380 thousand, up from RMB 26,698 thousand, a substantial increase of 519.5%[6] - Total equity increased to RMB 478,197 thousand as of June 30, 2025, compared to RMB 345,511 thousand at the end of 2024, reflecting a growth of 38.4%[7] - The company’s total liabilities as of June 30, 2025, were RMB 221,675,000, compared to RMB 191,095,000 as of December 31, 2024, indicating an increase of 16%[41] - Trade receivables (net of impairment) decreased to RMB 107,704,000 as of June 30, 2025, from RMB 145,463,000 as of December 31, 2024, reflecting a decline of approximately 26%[32] - As of June 30, 2025, trade payables amounted to RMB 42,335,000, a decrease of 30.8% from RMB 61,184,000 as of December 31, 2024[41] - Interest-bearing loans decreased slightly to RMB 32,000,000 as of June 30, 2025, from RMB 33,000,000 as of December 31, 2024[50] Operational Highlights - The company is focused on expanding its market presence in China, particularly in the production and sales of disposable hygiene products and non-woven fabrics[8] - The group has only one operating and reportable segment, focusing on the production and sales of disposable hygiene products and non-woven fabrics[14] - The company plans to add two new baby care production lines and one non-woven fabric production line by 2025, enhancing manufacturing capacity[72] - The company’s strong supply chain and vertically integrated operations provide necessary flexibility to respond to market changes[74] - Contract manufacturing revenue increased by approximately RMB 80.4 million or 43.6% to about RMB 264.8 million, driven by increased demand in the Russian market[71] - Brand products revenue grew by approximately RMB 19.5 million or 18.4% to about RMB 125.4 million, reflecting strong online sales and the successful launch of a new women's hygiene product[76] Expenses and Costs - Research and development expenses for the six months ended June 30, 2025, were RMB 11,871,000, slightly up from RMB 11,704,000 in the previous year[23] - Sales and distribution expenses surged by approximately RMB 36.7 million or 76.6% to about RMB 84.6 million, largely due to increased online sales and promotional activities[78] - Administrative and other operating expenses increased by approximately RMB 4.6 million or 23.4% to about RMB 24.3 million, mainly due to a significant rise in consulting fees[80] - Financial costs increased by approximately RMB 0.5 million or 166.7% to about RMB 0.8 million, primarily due to an increase in the average balance of interest-bearing borrowings[82] - Income tax expenses increased by approximately RMB 0.4 million or 6.8% to about RMB 6.3 million, with the effective tax rate decreasing from approximately 19.2% to 17.1%[83] Cash Flow and Investments - The company has committed capital expenditures of RMB 14,670,000 as of June 30, 2025, down from RMB 20,972,000 as of December 31, 2024[66] - The company has future minimum lease payments receivable of RMB 793,000 as of June 30, 2025, compared to RMB 292,000 as of December 31, 2024[67] - The net proceeds from the global offering amounted to approximately HKD 85.1 million, with all funds remaining unutilized as of June 30, 2025[100] - The planned use of proceeds includes purchasing machinery for production lines, totaling HKD 24,860 thousand for infant care and women's care products, and HKD 22,136 thousand for non-woven fabric production lines[101] Governance and Compliance - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[110] - The company has complied with the corporate governance code and relevant regulations since the listing date[109] - All resolutions at the 2025 Annual General Meeting were passed by voting, with results published on the stock exchange and the company's website[104]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 Zengame Technology Holding Limited 禪遊科技控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2660） 截至2025年6月30日止六個月的中期業績公告 禪遊科技控股有限公司董事會欣然宣佈本公司及其附屬公司截至2025年6月30 日止六個月的中期業績及中期簡明綜合財務報表，連同截至2024年6月30日止 六個月的比較數字。該等中期業績已經由本公司核數師安永會計師事務所根 據香港審閱聘用準則第2410號「由實體的獨立核數師審閱中期財務資料」審閱， 並經審核委員會審閱。 財務摘要 截至6月30日止六個月 | | 2025年 | 2024年 | 按年 | | --- | --- | --- | --- | | | （人民幣千元） | （人民幣千元） | 變動* | | | （未經審核） | （未經審核） | % | | 收入 | 709,141 | 934,315 | ...

Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 51,434,000, a decrease of 50% compared to HKD 102,795,000 for the same period in 2024[3] - Gross profit for the same period was HKD 15,832,000, down 60.9% from HKD 40,483,000 in 2024[3] - Loss from continuing operations before tax was HKD 16,389,000, compared to a loss of HKD 622,739,000 in the previous year, indicating a significant improvement[3] - The company reported a basic and diluted loss per share from continuing operations of HKD 0.10, compared to HKD 3.83 in the previous year[4] - The group reported a net loss of approximately HKD 16,389,000 for the six months ended June 30, 2025, with current liabilities exceeding current assets by about HKD 13,496,000[10] - The loss attributable to shareholders was approximately HKD 16,389,000, a reduction of about 97% from the previous year's loss of approximately HKD 552,529,000[48] - Basic loss per share was HKD 0.10, compared to HKD 3.71 in the same period last year[48] Assets and Liabilities - The total assets as of June 30, 2025, amounted to HKD 893,521,000, down from HKD 952,445,000 at the end of 2024[6] - Non-current assets increased to HKD 679,002,000 from HKD 660,720,000, reflecting a growth of 2.1%[6] - Current liabilities decreased to HKD 228,015,000 from HKD 311,938,000, a reduction of 26.8%[7] - The total equity attributable to the owners of the company increased to HKD 429,329,000 from HKD 397,379,000, reflecting a growth of 8.0%[6] - The total assets for the reporting segment amounted to HKD 559,823,000 as of June 30, 2025, compared to HKD 550,972,000 as of December 31, 2024, reflecting a slight increase of 1.5%[22] - The total liabilities for the reporting segment were HKD 218,333,000 as of June 30, 2025, compared to HKD 216,895,000 as of December 31, 2024, showing a marginal increase of 0.6%[23] Revenue Streams - The company reported no revenue from property sales for the six months ended June 30, 2025, compared to HKD 918,000 for the same period in 2024, indicating a complete halt in this revenue stream[21] - For the six months ended June 30, 2025, the total revenue from property management and agency services was HKD 38,327,000, a decrease of 31.4% compared to HKD 55,753,000 for the same period in 2024[21] - The property leasing, management, and agency services revenue decreased to approximately HKD 51,434,000 from HKD 101,877,000 in the same period last year[57] Cost Management and Financial Strategy - The group continues to implement measures to control administrative costs and save on capital expenditures, with plans to seek alternative financing if necessary[10] - Interest expenses for other borrowings were HKD 11,656,000 for the six months ended June 30, 2025, down from HKD 68,060,000 for the same period in 2024, representing a decrease of 82.8%[25] - The group has commitments for development and investment properties amounting to HKD 50,090,000 as of June 30, 2025[43] Corporate Governance and Leadership - The board announced that from July 18, 2025, Ms. Li Zhen was appointed as the chairperson of the board, consolidating leadership roles[65] - The company adopted the corporate governance code and has taken measures to ensure compliance, with a noted deviation regarding the separation of the roles of chairperson and CEO[69][70] - The company confirmed that all directors complied with the trading standards set out in the corporate governance code during the six-month period ending June 30, 2025[68] Market Conditions and Future Outlook - The commercial real estate rental demand remains weak, with rental levels continuing to decline, although the rate of decline has narrowed due to consumer stimulus policies[49] - The group is focusing on upgrading existing projects and exploring new market opportunities to enhance operational efficiency and profitability[54] - The group is entering a new phase of light asset development centered on operational management services, aiming to enhance core competitiveness in profitable new sectors[55] - The group plans to launch new brands across various business segments and improve project quality to cultivate stable profit centers[55] Employee and Operational Changes - As of June 30, 2025, the group employed approximately 317 employees in Hong Kong and China, a decrease from 332 employees as of December 31, 2024[60] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period[61] Risk Management - The group has not experienced any significant changes in its risk management policies since the last reporting period[16] - The group is closely monitoring foreign exchange and interest rate risks, with no current hedging instruments in place for these risks[59]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 GREENHEART GROUP LIMITED 綠心集團有限公司 （於百慕達註冊成立之有限公司） （股份代號：94） 截至二零二五年六月三十日止六個月之 中期業績公告 綠心集團有限公司（「綠心」或「本公司」）之董事（「董事」）會（「董事會」）謹此公佈 本公司及其附屬公司（「本集團」）截至二零二五年六月三十日止六個月（「本期間」） 之未經審核綜合業績，連同二零二四年同期比較數字如下： 簡明綜合損益及其他全面收益表 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | | （未經審核）（未經審核） | | | | 附註 | 千港元 | 千港元 | | | | | （經重列） | | 持續經營業務 | | | | | 收益 | 4 | 20,632 | 18,698 | | 銷售及服務成本 | | (18,699) ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) The Group's H1 2025 financial performance shows a 5% revenue increase, but a significant 50% drop in net profit and earnings per share, primarily due to reduced gross profit margins H1 2025 Financial Summary (RMB thousand) | Financial Data | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,966,322 | 2,835,031 | 5% | | Gross Profit | 401,046 | 451,966 | -11% | | Net Profit | 47,975 | 95,093 | -50% | | Profit Attributable to Owners of the Parent | 49,740 | 97,678 | -49% | | Basic Earnings Per Share (RMB cents) | 4.57 | 8.98 | -49% | | Diluted Earnings Per Share (RMB cents) | 4.57 | 8.98 | -49% | | **Financial Ratios (as % of Total Revenue)** | | | **Percentage Point Change** | | Gross Profit | 13.5% | 15.9% | -2.4 | | R&D Costs | 7.4% | 7.6% | -0.2 | | Net Profit | 1.6% | 3.4% | -1.8 | H1 2025 Revenue Breakdown (RMB thousand) | Revenue Details | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | New Energy | 1,437,848 | 1,452,608 | -1% | | Body Systems | 314,404 | 422,691 | -26% | | Safety Systems | 451,568 | 355,382 | 27% | | Powertrain Systems | 185,189 | 161,112 | 15% | | Intelligent Driving & Connectivity | 230,548 | 229,860 | 0% | | Cloud Servers | 255,444 | 108,783 | 135% | | Services & Others | 91,321 | 104,595 | -13% | [Management Discussion & Analysis](index=2&type=section&id=Management%20Discussion%20%26%20Analysis) [Overview](index=2&type=section&id=Overview) In H1 2025, China's auto market saw 11.4% sales growth, driven by 'trade-in' policies and NEV demand, with NEV sales up 40.3%, while the Group achieved 5% revenue growth despite industry price competition - H1 2025 China's auto sales reached **15.653 million units**, a **11.4% year-on-year increase**, with new energy vehicle sales growing **40.3% to 6.937 million units**, accounting for **44.3% of total sales**[6](index=6&type=chunk) - China's automotive industry profitability continued to decline, reaching **4.3% in 2024** and further dropping to **3.9% in Q1 2025**[6](index=6&type=chunk) - The Group's revenue increased **5% year-on-year**, and it launched the GRC1.0 high-performance controller solution based on the Digua Robot RDK S100 series intelligent computing platform, entering the embodied intelligent robotics field[6](index=6&type=chunk)[7](index=7&type=chunk) [Business Overview & Strategy](index=3&type=section&id=Business%20Overview%20%26%20Strategy) As a leading automotive electronics and robotics solution provider, the Group leverages strong R&D, semiconductor application technology, and industrialization capabilities to achieve continuous growth in NEVs and intelligent driving, while applying its mature automotive electronics experience to robotics [Automotive Electronics & Semiconductors](index=3&type=section&id=Automotive%20Electronics%20%26%20Semiconductors) The Group excels in NEV R&D and automotive semiconductor application technology, enabling cost-effective mass production solutions for OEMs, with NEV and intelligent driving as key growth drivers - The Group leverages its NEV R&D capabilities and automotive semiconductor application technology to help OEMs achieve **cost-effective mass production solutions**, enhancing business penetration[8](index=8&type=chunk) - The new energy sector and intelligent driving business are the primary drivers for the Group's **long-term revenue and profit growth**[8](index=8&type=chunk) - The Group maintains solid cooperation with global chip leaders and empowers the application and development of **domestic chips in the Chinese automotive market**[8](index=8&type=chunk) [Robotics Business Layout](index=3&type=section&id=Robotics%20Business%20Layout) Addressing standardization, high customization costs, and yield challenges in intelligent robot core controllers, the Group applies its high reliability, safety, and mass production experience from automotive electronics to robotics, offering industrial-grade controller products - The intelligent robotics industry faces challenges in core controller standardization, high customization costs, and product consistency and yield[9](index=9&type=chunk) - The Group injects its technological accumulation and mass production experience from automotive electronics (new energy, autonomous driving) into the robotics sector, providing **standardized robot controller products**[9](index=9&type=chunk) [R&D & Operating Model](index=3&type=section&id=R%26D%20%26%20Operating%20Model) R&D is the cornerstone of the Group's long-term development, providing optimized solutions through deep client collaboration, while adhering to a 'light-asset, heavy-R&D' model with continuous investment and a high-caliber talent team - R&D is the cornerstone of the Group's long-term business development, providing optimized solutions through **deep collaboration with clients**[10](index=10&type=chunk) - The Group adheres to a **"light-asset, heavy-R&D" operating model**, continuously investing in R&D and maintaining a high-caliber team of scientific and technological talents[10](index=10&type=chunk) [H1 2025 Business Performance](index=4&type=section&id=H1%202025%20Business%20Performance) Despite a weak automotive electronics market and intensified competition, the Group's H1 2025 total revenue grew 5% to RMB 2.97 billion, driven by safety systems, powertrain systems, and cloud servers, though gross margin declined to 13.5% due to price competition [Total Revenue & Gross Profit](index=4&type=section&id=Total%20Revenue%20%26%20Gross%20Profit) The Group's H1 2025 total revenue increased 5% to RMB 2.97 billion, driven by safety systems, powertrain systems, and cloud servers, but gross profit decreased to RMB 401.0 million, with gross margin falling 2.4 percentage points to 13.5% due to intensified price competition - H1 2025 total revenue increased **5% year-on-year to RMB 2.97 billion**[11](index=11&type=chunk) - Gross profit was **RMB 401.0 million**, with a gross margin of **13.5%**, a **2.4 percentage point decrease** from the prior year, primarily due to intensified price competition among automotive OEMs[13](index=13&type=chunk) - The Group maintained total R&D expenses at **7.4% of total revenue**, amounting to **RMB 219.9 million**[13](index=13&type=chunk) [Segment Revenue Analysis](index=4&type=section&id=Segment%20Revenue%20Analysis) The New Energy segment remains the largest contributor (48.5%) with stable revenue, while Safety Systems and Powertrain Systems saw 27% and 15% growth respectively, and Cloud Servers surged 135% due to AI demand [New Energy](index=4&type=section&id=New%20Energy) The New Energy segment's revenue remained stable at RMB 1,437.8 million, accounting for 48.5% of total revenue, with growth in MCU, BMS, in-vehicle charging, and PTC, and strong new project acquisition - New Energy segment revenue was **RMB 1,437.8 million**, stable year-on-year, accounting for **48.5% of total revenue**[11](index=11&type=chunk)[15](index=15&type=chunk) - This business saw growth in **Motor Control Units (MCU), Battery Management Systems (BMS), in-vehicle charging, and PTC**[15](index=15&type=chunk) - The Group's self-developed "motor controller power brick" has achieved **industry-leading levels** in power density, integration, and reliability, with continued R&D into high-power density solutions combining silicon carbide and silicon[15](index=15&type=chunk) [Body, Safety & Powertrain Systems](index=4&type=section&id=Body%2C%20Safety%20%26%20Powertrain%20Systems) Body Systems revenue decreased 26% to RMB 314.4 million due to strategic divestment of low-margin businesses, while Powertrain Systems grew 15% and Safety Systems increased 27% driven by active suspension and new project mass production - Body Systems business revenue decreased **26% to RMB 314.4 million**, accounting for **10.6% of total revenue**, primarily due to the Group's strategic divestment of some low-margin businesses[11](index=11&type=chunk)[16](index=16&type=chunk) - Powertrain Systems solutions grew **15%**, accounting for **6.2% of total revenue**, benefiting from commercial vehicle market growth and accelerated electrification[11](index=11&type=chunk)[16](index=16&type=chunk) - Safety Systems solutions revenue increased **27%**, accounting for **15.2% of total revenue**, primarily driven by increased adoption of active suspension systems and mass production of new projects in braking and steering applications[11](index=11&type=chunk)[16](index=16&type=chunk) [Intelligent Driving & Connectivity](index=4&type=section&id=Intelligent%20Driving%20%26%20Connectivity) Intelligent Driving & Connectivity revenue remained stable at RMB 230.5 million, with the Group launching its first L3-capable system solution and actively developing solutions based on Horizon Journey® 6, including a new generation domain controller MADC4.0 for L2+ ADAS - Intelligent Driving & Connectivity business revenue was **RMB 230.5 million**, stable year-on-year, accounting for **7.8% of total revenue**[11](index=11&type=chunk)[17](index=17&type=chunk) - The Group has launched its **first-generation L3-capable system solution** and plans to optimize its cost-effectiveness for broader market applicability[17](index=17&type=chunk) - The Group is actively developing solutions related to **Horizon Journey® 6**, including a front-fusion perception solution and the new generation system-level domain controller solution **MADC4.0** based on the Journey® 6E/M platform, supporting L2+ advanced driving assistance functions[17](index=17&type=chunk)[18](index=18&type=chunk) [Cloud Servers](index=4&type=section&id=Cloud%20Servers) Cloud Servers business revenue surged 135% to RMB 255.4 million, driven by strong customer demand for AI services, leading many clients to increase investment in private servers and private clouds - Cloud Servers business revenue increased **135% to RMB 255.4 million**, accounting for **8.6% of the Group's revenue**[11](index=11&type=chunk)[19](index=19&type=chunk) - The primary growth driver is customer demand for **AI services**, which has boosted the need for cloud servers, with many clients increasing investment in establishing private servers and private clouds[19](index=19&type=chunk) [Services & Others](index=4&type=section&id=Services%20%26%20Others) Revenue from Services & Others accounted for 3.1% of total revenue, with the Group securing more client mass production project development mandates and nominations during the period - Revenue from Services & Others accounted for **3.1% of total revenue**, with the Group securing more client mass production project development mandates and nominations during the period[11](index=11&type=chunk) [Clients & Market Expansion](index=5&type=section&id=Clients%20%26%20Market%20Expansion) OEMs and their Tier 1 suppliers remain the Group's primary end-customers, including China's top ten NEV passenger car brands, with 112 new mass production nominations, 10 of which involve export models or overseas clients, expanding reach to Japanese and European automakers - OEMs and their Tier 1 suppliers are the Group's primary end-customers, including **China's top ten well-known new energy passenger vehicle brands**[14](index=14&type=chunk) - The Group secured **112 new mass production nomination projects**, with **10 involving export models or overseas client projects**, expanding its client base to major Japanese and European automakers and Tier 1 suppliers[14](index=14&type=chunk) [R&D & Group Development](index=8&type=section&id=R%26D%20%26%20Group%20Development) R&D is central to the Group's strategy, with H1 2025 R&D expenses at RMB 219.9 million, 7.4% of revenue, supported by 950 R&D personnel and extensive intellectual property, while ESG efforts continue, and the Nantong R&D base enhances power brick production [R&D Investment & Achievements](index=8&type=section&id=R%26D%20Investment%20%26%20Achievements) H1 2025 R&D expenses were RMB 219.9 million, 7.4% of revenue, with 950 R&D personnel, and the Group added 36 patents and 2 software copyrights, accumulating 394 patents and 329 software copyrights - H1 2025 R&D expenses were **RMB 219.9 million**, representing approximately **7.4% of the Group's revenue**[20](index=20&type=chunk) - As of June 30, 2025, the Group had **950 full-time R&D technical personnel**, accounting for **70.9% of its total workforce**[20](index=20&type=chunk) - During the period, **36 new patents and 2 software copyrights** were added, bringing the cumulative total to **394 patents and 329 software copyrights**, with an additional **267 patents pending**[20](index=20&type=chunk) [ESG Practices](index=8&type=section&id=ESG%20Practices) The Group actively advances its ESG initiatives, setting GHG emission reduction targets, collaborating on green logistics, and enhancing product quality and safety through technological innovation to support a greener, safer, and smarter mobility ecosystem - The Group actively sets **Greenhouse Gas (GHG) emission reduction targets** (Scope 1 and Scope 2) and energy consumption reduction targets, collaborating with logistics providers to explore green mobility pilot projects[21](index=21&type=chunk) - Through intelligent driving solutions, energy-efficient autonomous driving systems, and AI-driven safety technologies, the Group enhances product quality and safety standards, supporting a **greener, safer, and smarter mobility ecosystem**[21](index=21&type=chunk) - The Group demonstrates **stable performance** in various ESG rating agencies, including QuantData (A), China Securities Index (BBB), China Chengxin Green Finance (BB), and MioTech (BB)[21](index=21&type=chunk) [Collaboration & Testing Validation](index=9&type=section&id=Collaboration%20%26%20Testing%20Validation) The Group partnered with eSOL Co., Ltd. to integrate its high-security RTOS platform into automotive electronics solutions, while its testing and validation center achieved CNAS re-accreditation and multiple project awards in chassis and safety systems - The Group partnered with **eSOL Co., Ltd.** to integrate its high-security and scalable Real-Time Operating System (RTOS) platform products into its automotive electronics and software solutions[22](index=22&type=chunk) - The testing and validation center passed the **China National Accreditation Service for Conformity Assessment (CNAS) re-assessment**, possessing capabilities for electromagnetic compatibility (EMC), electrical performance, and environmental reliability testing[22](index=22&type=chunk) - The chassis and safety systems segment received **multiple project awards**, with solutions covering steer-by-wire, air suspension, and chassis domain controllers, demonstrating technical advantages in high-voltage electronic control and functional safety[23](index=23&type=chunk) [Nantong R&D Base](index=9&type=section&id=Nantong%20R%26D%20Base) The Nantong R&D base completed its Phase II renovation, adding 3,000 square meters, and establishing full power brick prototyping and small-batch delivery capabilities, aiming for million-unit scale inverter brick and power module delivery by 2027 - The Nantong R&D base completed its **Phase II renovation**, adding approximately **3,000 square meters** of usable area, bringing the total building area to **16,000 square meters**[24](index=24&type=chunk) - The base has established complete capabilities for **power brick product prototyping and small-batch delivery**, including laser cleaning, welding, EOL test lines, and AVI workstations[24](index=24&type=chunk) - The Nantong R&D base will support the Group in achieving **million-unit scale delivery of inverter bricks and power modules by 2027**, enhancing its competitiveness in the new energy vehicle business[24](index=24&type=chunk) [Robotics Business](index=10&type=section&id=Robotics%20Business) Leveraging electrification and intelligent technology, the Group strategically entered robotics, developing the GRC1.0 high-performance controller solution based on the Digua Robot RDK S100 platform for embodied intelligent robots and industrial automation, anticipating rapid revenue growth - The Group successfully developed the **GRC1.0 high-performance controller solution** based on the Digua Robot RDK S100 intelligent computing platform, designed for embodied intelligent robots and industrial automation scenarios[25](index=25&type=chunk) - The GRC1.0 controller features core advantages such as a **highly reliable system architecture, powerful real-time control capabilities, integration of advanced technologies (e.g., SLAM), and mass production-friendly design**[25](index=25&type=chunk)[26](index=26&type=chunk) - With the rapid development of the embodied intelligence industry, the proportion of **robotics-related solutions in the Group's revenue is expected to maintain high growth**[25](index=25&type=chunk) [Outlook](index=11&type=section&id=Outlook) In H2, the global NEV market will be driven by China's leadership and emerging market vitality, prompting increased investment in NEV and autonomous driving technologies, while AI and cloud server integration will create opportunities across core businesses [Market Trends & Business Strategy](index=11&type=section&id=Market%20Trends%20%26%20Business%20Strategy) The H2 global NEV market will be driven by China's leadership and emerging market vitality, with domestic policies and supply chain advantages boosting NEV penetration, while AI and cloud server integration will create transformative opportunities for the Group's core businesses - In H2, the global new energy vehicle market will be driven by **China's leading position and the vitality of emerging markets**, with domestic policies and supply chain advantages further increasing NEV penetration[27](index=27&type=chunk) - The Group will steadfastly pursue technological innovation, continuously increasing investment in **new energy vehicles and autonomous driving technologies**[27](index=27&type=chunk) - The integration of **Artificial Intelligence and cloud server technologies** will create transformative opportunities for body control, safety systems, powertrain, and new energy vehicle businesses, with the Group collaborating with chip manufacturers and cloud service providers to build comprehensive solutions[27](index=27&type=chunk) [R&D & International Expansion](index=11&type=section&id=R%26D%20%26%20International%20Expansion) Intelligent driving and connectivity solutions are a long-term growth highlight, with the Group launching advanced domain control platforms for L3+ autonomous driving, deepening robotics collaboration, and anticipating over 100 new mass production nominations while accelerating international expansion - Intelligent Driving & Connectivity solutions are a **long-term growth highlight** for the Group, which is expected to secure more collaborations in L2+ advanced driving assistance domain controllers based on its prior technological accumulation and project experience[28](index=28&type=chunk) - The Group will launch **advanced intelligent driving domain control platforms** for L3 and above autonomous driving systems, further solidifying its business opportunities in the high-end market[28](index=28&type=chunk) - The Group anticipates over **100 new mass production nomination projects**, covering chassis systems, Advanced Driver-Assistance Systems (ADAS), Motor Control Units (MCU), and Battery Management Systems (BMS), while accelerating its international expansion to support localized overseas supply chains[30](index=30&type=chunk)[31](index=31&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) [Income Statement Analysis](index=13&type=section&id=Income%20Statement%20Analysis) The Group's H1 2025 total revenue grew 5% to RMB 2,966.3 million, driven by safety systems and cloud servers, but gross profit decreased 11% to RMB 401.0 million, with profit for the period falling 50% to RMB 48.0 million [Revenue](index=13&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue increased 5% year-on-year to RMB 2,966.3 million, primarily driven by strong performance in the safety systems and cloud servers segments - Total revenue increased **5% year-on-year to RMB 2,966.3 million**[32](index=32&type=chunk) - The main growth drivers were the **Safety Systems segment (+27%) and Cloud Servers segment (+135%)**[33](index=33&type=chunk) [Gross Profit](index=14&type=section&id=Gross%20Profit) For the six months ended June 30, 2025, gross profit decreased 11% year-on-year to RMB 401.0 million, with the overall gross margin falling 2.4 percentage points to 13.5% from 15.9% in the prior year - Gross profit decreased **11% to RMB 401.0 million**[34](index=34&type=chunk) - The overall gross margin was **13.5%**, a **2.4 percentage point decrease** from 15.9% in the prior year[34](index=34&type=chunk) [Other Income & Gains](index=14&type=section&id=Other%20Income%20%26%20Gains) Other income and gains increased 55% to RMB 19.2 million, primarily due to earlier receipt of government grants in the first half of the year compared to the prior period - Other income and gains increased **55% to RMB 19.2 million**[35](index=35&type=chunk) - This was primarily due to **earlier receipt of government grants** in the first half of the year compared to the prior period[35](index=35&type=chunk) [Selling & Distribution Expenses](index=14&type=section&id=Selling%20%26%20Distribution%20Expenses) Selling and distribution expenses remained stable at RMB 48.0 million compared to the same period in 2024 - Selling and distribution expenses were **RMB 48.0 million**, remaining stable compared to the same period in 2024[36](index=36&type=chunk) [Administrative Expenses](index=14&type=section&id=Administrative%20Expenses) Administrative expenses increased 3% to RMB 256.3 million, with total R&D expenses at RMB 219.9 million, representing 7.4% of revenue, primarily due to a slight increase in R&D personnel salaries - Administrative expenses were **RMB 256.3 million**, an increase of **3%** compared to the same period in 2024[37](index=37&type=chunk) - Total R&D expenses were **RMB 219.9 million**, representing **7.4% of revenue**, an increase of **2%** compared to the same period in 2024, primarily due to a slight increase in R&D personnel salaries[37](index=37&type=chunk) [Other Expenses](index=15&type=section&id=Other%20Expenses) Other expenses increased 5% to RMB 30.7 million, primarily due to increased exchange losses - Other expenses were **RMB 30.7 million**, an increase of **5%** compared to the prior year, primarily due to increased exchange losses[38](index=38&type=chunk) [Finance Costs](index=15&type=section&id=Finance%20Costs) Finance costs decreased 5% to RMB 53.8 million, mainly due to a higher proportion of RMB loans in the Group's borrowings, reducing overall interest expenses - Finance costs were **RMB 53.8 million**, a **5% decrease** compared to the same period in 2024[39](index=39&type=chunk) - This was primarily due to an **increased proportion of RMB loans** in the Group's borrowings, reducing overall interest expenses[39](index=39&type=chunk) [Income Tax Credit](index=15&type=section&id=Income%20Tax%20Credit) Income tax credit increased 23% to RMB 16.5 million, mainly due to a decrease in profit before tax compared to the prior period while deferred tax recognition remained stable - Income tax credit was **RMB 16.5 million**, an increase of **23%** compared to the same period in 2024[40](index=40&type=chunk) - This was primarily due to a **decrease in profit before tax** compared to the same period in 2024, while deferred tax recognition remained stable[40](index=40&type=chunk) [Profit for the Period](index=15&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period decreased 50% from RMB 95.0 million for the six months ended June 30, 2024, to RMB 48.0 million for the six months ended June 30, 2025 - Profit for the period decreased **50% to RMB 48.0 million**[41](index=41&type=chunk) [Liquidity & Financial Resources](index=15&type=section&id=Liquidity%20%26%20Financial%20Resources) As of June 30, 2025, the Group's cash and cash equivalents were RMB 678.5 million, with net current assets of RMB 1,375.6 million, a net debt-to-equity ratio of 47%, and outstanding bank loans of RMB 1,636.3 million - As of June 30, 2025, cash and cash equivalents were **RMB 678.5 million** (December 31, 2024: RMB 916.2 million)[42](index=42&type=chunk) - Net current assets were **RMB 1,375.6 million** (December 31, 2024: RMB 1,716.4 million)[42](index=42&type=chunk) - The net debt-to-equity ratio was **47%** (December 31, 2024: 50%), with outstanding bank loans of **RMB 1,636.3 million** (December 31, 2024: RMB 2,038.4 million)[42](index=42&type=chunk) [Dividends](index=16&type=section&id=Dividends) The Directors do not recommend the payment of an interim dividend for the review period - The Directors do not recommend the payment of a dividend for the review period[44](index=44&type=chunk) [Other Financial Matters](index=16&type=section&id=Other%20Financial%20Matters) The Group had no significant post-balance sheet events, major investments, acquisitions, or disposals, nor significant contingent liabilities during the review period, with capital commitments increasing to RMB 23.9 million, and exchange rate risk managed through various strategies [Capital Commitments](index=16&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to RMB 23.9 million, an increase from RMB 7.2 million as of December 31, 2024 - As of June 30, 2025, contracted but unprovided capital commitments were **RMB 23.9 million** (December 31, 2024: RMB 7.2 million)[46](index=46&type=chunk) [Major Investments, Acquisitions & Disposals](index=16&type=section&id=Major%20Investments%2C%20Acquisitions%20%26%20Disposals) During the review period, the Group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the review period, the Group did not undertake any **significant investments, major acquisitions, or disposals of subsidiaries, associates, or joint ventures**[47](index=47&type=chunk) [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[48](index=48&type=chunk) [Exchange Rate Risk](index=16&type=section&id=Exchange%20Rate%20Risk) The Group operates primarily in China and faces foreign exchange risk from RMB fluctuations against other currencies, which it manages by reducing net foreign currency positions and adjusting customer prices - The Group faces foreign exchange risk arising from fluctuations in exchange rates between the **RMB and other currencies** used in its operations[49](index=49&type=chunk) - The Group mitigates losses from foreign currency exchange rate fluctuations by **reducing net foreign currency positions, adjusting customer prices**, and considering foreign exchange forward contracts when necessary[49](index=49&type=chunk) [Use of Proceeds from Global Offering](index=17&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the global offering were HKD 766.7 million (approx. RMB 655.4 million), with RMB 608.4 million utilized by June 30, 2025, and RMB 47.0 million for acquiring R&D capabilities expected to be fully used by end of 2026 - The net proceeds from the global offering were **HKD 766.7 million** (equivalent to **RMB 655.4 million**)[52](index=52&type=chunk) Use of Proceeds from Global Offering (RMB million) | Use of Proceeds | Planned Use | % of Total Net Proceeds | Actual Utilization as of June 30, 2025 | Unutilized Net Proceeds as of June 30, 2025 | Expected Timeline for Utilizing Remaining Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Expanding R&D Capabilities | 196.6 | 30 | 196.6 | 0 | Not applicable | | Strengthening R&D Infrastructure | 196.6 | 30 | 196.6 | 0 | Not applicable | | Acquiring R&D Capabilities | 196.6 | 30 | 149.6 | 47.0 | Expected to be fully utilized by end of 2026* | | General Working Capital | 65.6 | 10 | 65.6 | 0 | Not applicable | | **Total** | **655.4** | **100** | **608.4** | **47.0** | | - The timeline for acquiring R&D capabilities has been extended to **end of 2026** due to the need for more time to identify and select suitable potential investment targets[53](index=53&type=chunk) [Corporate Governance & Other Information](index=17&type=section&id=Corporate%20Governance%20%26%20Other%20Information) [Employees & Remuneration Policy](index=17&type=section&id=Employees%20%26%20Remuneration%20Policy) As of June 30, 2025, the Group employed 1,340 staff, with total employee costs of RMB 252.4 million, representing 8.5% of revenue, offering competitive remuneration and training, and providing share options to eligible employees - As of June 30, 2025, the Group employed **1,340 staff** (June 30, 2024: 1,373 staff)[50](index=50&type=chunk) - Total employee costs were **RMB 252.4 million**, accounting for **8.5% of the Group's revenue** for the period[50](index=50&type=chunk) - The Group granted **70,621,550 outstanding share options** to eligible employees to enhance the attractiveness of remuneration packages[50](index=50&type=chunk) [Corporate Governance Practices](index=19&type=section&id=Corporate%20Governance%20Practices) The Company is committed to high corporate governance standards, adopting the Listing Rules' Corporate Governance Code, and despite the Chairman and Co-CEO roles being combined, the Board ensures effective checks and balances - The Company has adopted the **Code Provisions of the Corporate Governance Code** set out in Appendix C1 of the Listing Rules[55](index=55&type=chunk) - The roles of Chairman and Co-Chief Executive Officer are held by Mr. Lu Yingming, deviating from Code Provision C.2.1, but the Board believes this arrangement enhances decision-making and execution efficiency, with appropriate checks and balances implemented through the Board and independent non-executive directors[55](index=55&type=chunk) - All Directors complied with the **Model Code for Securities Transactions by Directors of Listed Issuers** and written guidelines during the review period and up to the date of this report[57](index=57&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors chaired by Mr. Xu Rongguo, reviews and oversees the Group's financial reporting and internal controls, having approved the unaudited condensed consolidated interim financial statements - The Audit Committee comprises **three independent non-executive directors**, with Mr. Xu Rongguo as Chairman, possessing the financial expertise and experience required by the Listing Rules[58](index=58&type=chunk) - The Committee has reviewed the Group's **unaudited condensed consolidated interim financial statements** for the review period and deemed them compliant with relevant accounting standards, rules, and regulations[58](index=58&type=chunk) [Publication of Information](index=20&type=section&id=Publication%20of%20Information) This results announcement will be published on the HKEX and Company websites, with the interim report to be dispatched to shareholders in due course - This results announcement and the interim report will be published on the **HKEX website (www.hkexnews.hk) and the Company's website (www.intron-tech.com)**[59](index=59&type=chunk) [Condensed Consolidated Financial Statements](index=21&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=21&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group reported revenue of RMB 2,966,322 thousand and gross profit of RMB 401,046 thousand, with profit for the period decreasing 50% to RMB 47,975 thousand, and basic and diluted EPS at RMB 4.57 cents Consolidated Income Statement Key Data (RMB thousand) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Revenue | 2,966,322 | 2,835,031 | | Gross Profit | 401,046 | 451,966 | | Profit Before Tax | 31,441 | 81,693 | | Income Tax Credit | 16,534 | 13,400 | | Profit for the Period | 47,975 | 95,093 | | Profit Attributable to Owners of the Parent | 49,740 | 97,678 | | Basic Earnings Per Share (RMB cents) | 4.57 | 8.98 | | Diluted Earnings Per Share (RMB cents) | 4.57 | 8.98 | [Consolidated Statement of Comprehensive Income](index=22&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's profit for the period was RMB 47,975 thousand, with net other comprehensive income of RMB 5,796 thousand, resulting in total comprehensive income of RMB 53,771 thousand Consolidated Statement of Comprehensive Income Key Data (RMB thousand) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the Period | 47,975 | 95,093 | | Exchange differences on translating foreign operations | 17,499 | (7,918) | | Exchange differences on translating the Company's accounts | (11,703) | 6,024 | | Other comprehensive income for the period, net of tax | 5,796 | (1,894) | | Total comprehensive income for the period | 53,771 | 93,199 | | Attributable to owners of the parent | 55,536 | 95,784 | [Consolidated Statement of Financial Position](index=23&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group reported total non-current assets of RMB 1,113,067 thousand, total current assets of RMB 4,488,321 thousand, and net current assets of RMB 1,375,558 thousand, with net assets totaling RMB 2,476,023 thousand Consolidated Statement of Financial Position Key Data (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 1,113,067 | 1,073,047 | | Total Current Assets | 4,488,321 | 5,037,226 | | Total Current Liabilities | 3,112,763 | 3,320,788 | | Net Current Assets | 1,375,558 | 1,716,438 | | Net Assets | 2,476,023 | 2,481,266 | | Equity Attributable to Owners of the Parent | 2,476,334 | 2,479,826 | [Notes to the Financial Statements](index=25&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information & Basis of Presentation](index=25&type=section&id=General%20Information%20%26%20Basis%20of%20Presentation) The Group develops automotive component engineering solutions for major Chinese car manufacturers, with financial statements prepared under HKAS 34 and Listing Rules Appendix D2, presented at historical cost in RMB - The Group focuses on developing **automotive component engineering solutions** for major Chinese car manufacturers[64](index=64&type=chunk) - The financial statements are prepared in accordance with **HKAS 34 'Interim Financial Reporting'** issued by the HKICPA and **Appendix D2 of the Listing Rules**[65](index=65&type=chunk) - The financial statements are prepared under the **historical cost convention** and presented in **RMB**[65](index=65&type=chunk) [Changes in Accounting Policies](index=25&type=section&id=Changes%20in%20Accounting%20Policies) The accounting policies adopted are consistent with the 2024 annual consolidated financial statements, except for the initial adoption of HKAS 21 amendments 'Lack of Exchangeability', which had no significant financial impact - The accounting policies adopted for these financial statements are consistent with those applied in the 2024 annual consolidated financial statements, except for the initial adoption of **HKAS 21 amendments 'Lack of Exchangeability'** issued by the HKICPA for the current period's financial information[66](index=66&type=chunk)[67](index=67&type=chunk) - The new and revised standards have **no significant financial impact** on these financial statements[67](index=67&type=chunk) [Operating Segments & Geographical Information](index=26&type=section&id=Operating%20Segments%20%26%20Geographical%20Information) The Group operates as a single reportable segment, with the vast majority of H1 2025 revenue (RMB 2,756,785 thousand) and non-current assets (RMB 807,683 thousand) originating from Mainland China - The Group has **only one reportable operating segment**[68](index=68&type=chunk) External Customer Revenue by Customer Location (RMB thousand) | Region | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Hong Kong | 197,777 | 115,311 | | Mainland China | 2,756,785 | 2,698,257 | | Other Countries/Regions | 11,760 | 21,463 | | **Total** | **2,966,322** | **2,835,031** | Non-current Assets by Asset Location (RMB thousand) | Region | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Hong Kong | 98,449 | 100,865 | | Mainland China | 807,683 | 802,633 | | Other Countries/Regions | 1,064 | 1,458 | | **Total** | **907,196** | **904,956** | - No single customer's revenue accounted for **10% or more of the Group's revenue** during the period, thus no corresponding revenue is disclosed for such customers[72](index=72&type=chunk) [Details of Revenue, Other Income & Gains](index=27&type=section&id=Details%20of%20Revenue%2C%20Other%20Income%20%26%20Gains) The Group's revenue primarily consists of product sales (RMB 2,932,332 thousand) and consulting services (RMB 33,990 thousand), with other income mainly from government grants and bank interest, and gains from fair value derivatives Revenue, Other Income & Gains Analysis (RMB thousand) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Revenue from contracts with customers** | | | | －Sales of products | 2,932,332 | 2,785,967 | | －Rendering of consulting services | 33,990 | 49,064 | | **Total other income** | **14,996** | **7,835** | | Government grants | 7,664 | 2,167 | | Bank interest income | 6,135 | 3,090 | | **Gains** | | | | Gains on derivative financial instruments at fair value through profit or loss | 4,181 | 4,505 | | **Total other income and gains** | **19,177** | **12,340** | [Components of Profit Before Tax](index=28&type=section&id=Components%20of%20Profit%20Before%20Tax) Profit before tax is presented after deducting cost of inventories sold (RMB 2,539,342 thousand), depreciation of property, plant and equipment (RMB 29,418 thousand), and right-of-use assets (RMB 11,447 thousand), with total R&D costs of RMB 219,869 thousand Profit Before Tax Deductions/(Credits) (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 2,539,342 | 2,360,660 | | Depreciation of property, plant and equipment | 29,418 | 30,309 | | Depreciation of right-of-use assets | 11,447 | 12,676 | | Total R&D costs | 219,869 | 215,043 | | Employee benefit expenses (excluding directors' and co-CEOs' emoluments) | 220,050 | 209,250 | | Write-down of inventories to net realizable value | 30,683 | 7,582 | | Government grants | (7,664) | (2,167) | | Bank interest income | (6,135) | (3,090) | | Net exchange losses | 30,401 | 29,121 | [Income Tax Details](index=29&type=section&id=Income%20Tax%20Details) The Group is subject to income tax in various jurisdictions, with Hong Kong profits tax at 16.5% and Mainland China corporate income tax at 25%, with preferential rates for high-tech and small/micro enterprises, resulting in a total tax credit of RMB 16,534 thousand for the period - Hong Kong profits tax is provided at a rate of **16.5%**, with some subsidiaries applying a two-tiered profits tax system[74](index=74&type=chunk) - Mainland China corporate income tax has a statutory rate of **25%**, with high-tech enterprises enjoying a preferential rate of **15%**, and small and micro-enterprises enjoying preferential rates from **5% to 25%**[74](index=74&type=chunk)[75](index=75&type=chunk) Total Income Tax Credit (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Current - Mainland China tax for the period | 350 | 38 | | Current - Other regions tax for the period | 20,896 | 27,134 | | Deferred tax | (37,780) | (40,572) | | **Total tax credit for the period** | **(16,534)** | **(13,400)** | [Earnings Per Share Calculation](index=30&type=section&id=Earnings%20Per%20Share%20Calculation) Basic and diluted earnings per share were both RMB 4.57 cents, calculated based on profit attributable to ordinary equity holders of RMB 49,740 thousand and 1,087,838,400 weighted average ordinary shares outstanding, with no dilution adjustment due to share option exercise price - Basic and diluted earnings per share were both **RMB 4.57 cents**[79](index=79&type=chunk) - The calculation is based on profit attributable to ordinary equity holders of the parent of **RMB 49,740 thousand** and a weighted average number of ordinary shares outstanding of **1,087,838,400 shares** during the period[79](index=79&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - No adjustment was made for diluted basic earnings per share as the **exercise price of outstanding share options was higher than the average market price** of the shares during the period[79](index=79&type=chunk) [Trade & Bills Receivables](index=31&type=section&id=Trade%20%26%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables were RMB 1,685,814 thousand, including trade receivables of RMB 1,545,994 thousand and bills receivables of RMB 157,091 thousand, with credit terms generally within three months and strict control over overdue amounts Trade & Bills Receivables (RMB thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables | 1,545,994 | 2,311,500 | | Bills receivables | 157,091 | 54,144 | | Impairment | (17,271) | (12,774) | | **Total** | **1,685,814** | **2,352,870** | - Credit terms are generally **within three months**, and the Group maintains strict control over overdue amounts[83](index=83&type=chunk) - Trade receivables include amounts due from related parties of **RMB 12,831 thousand**[84](index=84&type=chunk) [Trade & Bills Payables](index=32&type=section&id=Trade%20%26%20Bills%20Payables) As of June 30, 2025, total trade and bills payables were RMB 611,124 thousand, comprising trade payables of RMB 425,250 thousand and bills payables of RMB 185,874 thousand, which are interest-free and generally repayable within three months Trade & Bills Payables (RMB thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables | 425,250 | 502,664 | | Bills payables | 185,874 | 72,283 | | **Total** | **611,124** | **574,947** | - Trade payables are **interest-free** and generally repayable **within three months**[86](index=86&type=chunk) [Share Capital](index=33&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 2,400,000,000 ordinary shares of HKD 0.01 each, with issued and fully paid share capital of 1,087,838,400 ordinary shares, totaling RMB 9,249 thousand - Authorized share capital was **2,400,000,000 ordinary shares of HKD 0.01 each**, with a par value of **HKD 24,000 thousand**[87](index=87&type=chunk) - Issued and fully paid share capital was **1,087,838,400 ordinary shares of HKD 0.01 each**, totaling **RMB 9,249 thousand**[87](index=87&type=chunk)

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This chapter provides an overview of Essence Group Holdings Limited's financial performance and position for the six months ended June 30, 2025, showing growth in revenue and profit, a slight decrease in gross and net margins, and increased total assets, liabilities, and cash with stable liquidity and debt ratios 2025 H1 Key Financial Performance (HKD thousands) | Metric | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Increase/(Decrease) % | | :--- | :--- | :--- | :--- | | **Performance** | | | | | Revenue | 876,535 | 828,541 | 5.8 | | Profit for the period | 163,401 | 157,440 | 3.8 | | **Financial Ratios** | | | | | Gross margin | 88.8% | 89.2% | (0.4)pp | | Net margin | 18.6% | 19.0% | (0.4)pp | | Return on equity | 7.2% | 7.8% | (0.6)pp | | Earnings per share - Basic | 28.82 HK cents | 27.74 HK cents | 3.9 | | Earnings per share - Diluted | 28.82 HK cents | 26.90 HK cents | 7.1 | | Interim dividend per ordinary share | 7.0 HK cents | 6.0 HK cents | 16.7 | 2025 H1 Key Financial Position (HKD thousands) | Metric | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | Increase/(Decrease) % | | :--- | :--- | :--- | :--- | | **Financial Position** | | | | | Total assets | 3,233,768 | 2,983,045 | 8.4 | | Total liabilities | 959,944 | 859,325 | 11.7 | | Net assets | 2,273,824 | 2,123,720 | 7.1 | | Cash and cash equivalents | 640,533 | 557,167 | 15.0 | | **Financial Ratios** | | | | | Current ratio | 1.90 | 1.81 | 0.09 | | Debt-to-asset ratio | 0.30 | 0.29 | 0.01 | [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) This chapter details the Group's profit or loss and other comprehensive income for the six months ended June 30, 2025, showing year-on-year growth in revenue and profit, a shift from gain to loss in other income, and a significant increase in total comprehensive income due to foreign exchange differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 876,535 | 828,541 | | Cost of sales | (97,932) | (89,742) | | Gross profit | 778,603 | 738,799 | | Other income and other gains and losses | (691) | 17,157 | | Distribution and selling expenses | (471,638) | (450,305) | | Administrative expenses | (99,740) | (102,879) | | Finance costs | (2,800) | (3,442) | | Share of loss of associates | (161) | (1,950) | | Profit before income tax | 203,573 | 197,380 | | Income tax | (40,172) | (39,940) | | **Profit for the period** | **163,401** | **157,440** | | Exchange differences on translation of financial statements of overseas operations | 38,771 | (41,016) | | Fair value changes of equity instruments at fair value through other comprehensive income | (17,723) | 925 | | **Total comprehensive income for the period** | **184,449** | **117,349** | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This chapter presents the Group's assets, liabilities, and equity as of June 30, 2025, indicating growth in both non-current and current assets, particularly other intangible assets and trade and other receivables, with a corresponding increase in total liabilities, while net current assets and total assets less current liabilities show healthy growth Condensed Consolidated Statement of Financial Position (HKD thousands) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 439,832 | 393,980 | | Other intangible assets | 1,186,666 | 1,127,654 | | Total non-current assets | 1,791,926 | 1,699,744 | | **Current assets** | | | | Inventories | 64,939 | 58,938 | | Trade and other receivables | 661,179 | 586,295 | | Cash and cash equivalents | 640,533 | 557,167 | | Total current assets | 1,441,842 | 1,283,301 | | **Total assets** | **3,233,768** | **2,983,045** | | **Current liabilities** | | | | Trade and other payables | 519,490 | 545,397 | | Bank borrowings | 120,164 | 69,798 | | Total current liabilities | 757,806 | 708,978 | | **Non-current liabilities** | | | | Bank borrowings | 150,322 | 95,550 | | Total non-current liabilities | 202,138 | 150,347 | | **Total liabilities** | **959,944** | **859,325** | | **Net assets** | **2,273,824** | **2,123,720** | | **Total equity** | **2,273,824** | **2,123,720** | [Condensed Consolidated Statement of Changes in Equity](index=6&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) This chapter outlines the Group's equity movements for the six months ended June 30, 2025, reflecting the impact of profit for the period, increases in foreign currency translation reserve, dividends paid, and share repurchases, ultimately leading to an increase in total equity attributable to owners of the Company Condensed Consolidated Statement of Changes in Equity (HKD thousands) | Item | Share Capital | Share Premium | Capital Reserve | Statutory Surplus Reserve | Foreign Currency Translation Reserve | Fair Value Through Other Comprehensive Income Reserve | Retained Profits | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | January 1, 2024 | 56,759 | 73,279 | 362 | 90,683 | (100,707) | (74,915) | 1,844,993 | 1,923,777 | | Profit for the period | – | – | – | – | – | – | 157,440 | 157,440 | | Total other comprehensive income | – | – | – | – | (41,016) | 925 | – | (40,091) | | Dividends paid | – | – | – | – | – | – | (25,539) | (25,539) | | Shares repurchased and cancelled | (5) | – | – | – | – | – | (102) | (107) | | **June 30, 2024** | **56,754** | **73,279** | **362** | **90,683** | **(141,723)** | **(75,173)** | **1,977,975** | **2,015,480** | | **January 1, 2025** | **56,713** | **73,278** | **362** | **90,683** | **(156,912)** | **(66,455)** | **2,126,051** | **2,123,720** | | Profit for the period | – | – | – | – | – | – | 163,401 | 163,401 | | Total other comprehensive income | – | – | – | – | 38,771 | (17,723) | – | 21,048 | | Dividends paid | – | – | – | – | – | – | (34,020) | (34,020) | | Shares repurchased and cancelled | (12) | – | – | – | – | – | (313) | (325) | | **June 30, 2025** | **56,701** | **73,278** | **362** | **90,683** | **(118,141)** | **(84,178)** | **2,255,119** | **2,273,824** | [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) This chapter provides the Group's cash flow information for the six months ended June 30, 2025, showing a decrease in net cash from operating activities, a significant increase in cash outflow from investing activities primarily due to increased acquisitions of property, plant and equipment and other intangible assets, and a substantial increase in cash inflow from financing activities mainly from bank borrowings Condensed Consolidated Statement of Cash Flows (HKD thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | 122,487 | 131,664 | | Net cash used in investing activities | (111,104) | (40,824) | | Net cash from financing activities | 58,971 | 5,949 | | Net increase in cash and cash equivalents | 70,354 | 96,789 | | Cash and cash equivalents at beginning of period | 557,167 | 509,845 | | Effect of foreign exchange rate changes on cash and cash equivalents | 13,012 | (8,220) | | Cash and cash equivalents at end of period | 640,533 | 598,414 | - Investing cash outflow significantly increased, primarily due to acquisitions of **property, plant and equipment (HKD 59,359 thousand)** and **other intangible assets (HKD 44,850 thousand)**[12](index=12&type=chunk) - Financing cash inflow significantly increased, primarily due to **proceeds from bank borrowings (HKD 124,345 thousand)**[12](index=12&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=9&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E6%B3%A8) This chapter provides detailed explanations and supplementary information to the condensed consolidated interim financial statements, covering accounting policies, segment reporting, specific components and changes in asset and liability accounts, fair value measurements, capital commitments, and related party transactions, offering deeper context for understanding the financial data [1. General Information](index=9&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) This section introduces the Company's registration details, listing location, and principal activities, which include investment holding, development, manufacturing, and sale of biopharmaceutical products - The Company is incorporated in the Cayman Islands, with shares listed on the Main Board of The Stock Exchange of Hong Kong Limited (Stock Code: 1061)[13](index=13&type=chunk) - The Group's principal activities are investment holding, and the development, manufacture, and sale of biopharmaceutical products[14](index=14&type=chunk) [2. Basis of Preparation](index=9&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section states that the interim financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" issued by the HKICPA and applicable disclosure requirements of the Listing Rules, presented in HKD, with interim income tax calculated using applicable rates - Financial statements are prepared in accordance with HKAS 34 issued by HKICPA and Listing Rules, presented in HKD[15](index=15&type=chunk) - Interim income tax is calculated at the applicable tax rates for each Group entity[16](index=16&type=chunk) [3. Accounting Policies](index=9&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This section notes that the accounting policies adopted are consistent with those followed in the preparation of the 2024 annual financial statements, and the adoption of new and revised standards had no significant impact on the Group's condensed consolidated interim financial statements - Accounting policies adopted are consistent with 2024 financial statements, with no significant impact from new or revised standards[17](index=17&type=chunk) [4. Segment Reporting](index=10&type=section&id=4.%20%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) This section reports the Group's revenue and profit contributions by business segment (Ophthalmology, Surgery, Services) and geographical region (China, Overseas), and discloses major customer information, facilitating resource allocation and performance assessment [4.1. Reportable Segments](index=10&type=section&id=4.1.%20%E5%8F%AF%E5%A0%B1%E5%91%8A%E5%88%86%E9%83%A8) This section details the revenue and profit for the three main business segments: Ophthalmology, Surgery, and Services, describing key products for each, showing Surgery and Ophthalmology as primary revenue contributors 2025 H1 Reportable Segment Revenue and Profit (HKD thousands) | Segment | Revenue from External Customers | Reportable Segment Profit | | :--- | :--- | :--- | | Ophthalmology | 417,358 | 113,486 | | Surgery | 448,965 | 120,946 | | Services | 10,212 | 7,636 | | **Total** | **876,535** | **242,068** | - Ophthalmic products include Beifushu® series, Tobramycin Eye Drops, Shilisun®, and medical devices for myopia control[20](index=20&type=chunk) - Surgical products include Beifuji® series, Carisolv® Caries Removal Gel, and Yadent Doctor Oral Care products[20](index=20&type=chunk) [4.2. Geographical Information](index=11&type=section&id=4.2.%20%E5%9C%B0%E5%8D%80%E8%B3%87%E6%96%99) This section discloses the Group's revenue from external customers in China and overseas, along with the geographical distribution of non-current assets, indicating China as the primary source of revenue and assets - For the six months ended June 30, 2025, China business revenue was **HKD 871.7 million**, and overseas business revenue was **HKD 4.8 million**[23](index=23&type=chunk) Non-current Assets Geographical Distribution (HKD thousands) | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | China | 1,440,271 | 1,330,880 | | Hong Kong | 273,381 | 274,229 | | Overseas | 33,479 | 33,276 | | **Total** | **1,747,131** | **1,638,385** | [4.3. Information about Major Customers](index=12&type=section&id=4.3.%20%E6%9C%89%E9%97%9C%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E4%B9%8B%E8%B3%87%E6%96%99) This section reports that two customers accounted for over 10% of the Group's total revenue during the period - For the six months ended June 30, 2025, two major customers contributed **HKD 230.4 million** and **HKD 89.2 million** in revenue respectively, both exceeding **10% of total revenue**[25](index=25&type=chunk) [5. Revenue](index=12&type=section&id=5.%20%E7%87%9F%E6%A5%AD%E9%A1%8D) This section defines revenue as the sales value of products supplied to customers and service income, net of sales taxes, VAT, trade discounts, and sales returns - Revenue is defined as the sales value of products and service income, net of sales tax, VAT, discounts, and returns[26](index=26&type=chunk) [6. Other Income and Other Gains and Losses](index=13&type=section&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E4%BB%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) This section lists the components of other income and gains for the period, including interest income, government grants, miscellaneous income, and net income from litigation claims, with the total amount shifting from a gain in the prior period to a loss in the current period Components of Other Income and Gains (HKD thousands) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Interest income from convertible loan receivable | 947 | 911 | | Government grants | 1,495 | 3,375 | | Interest income from bank deposits | 4,474 | 5,941 | | Miscellaneous income | 2,483 | 2,213 | | Fair value changes of financial assets at fair value through profit or loss | (23) | (6,366) | | Net income from litigation claims | (10,067) | 21,153 | | **Total** | **(691)** | **17,157** | [7. Finance Costs](index=13&type=section&id=7.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) This section discloses the composition of finance costs for the period, primarily bank borrowing interest expenses and lease liability interest expenses, with a portion capitalized, resulting in a year-on-year decrease in total finance costs Components of Finance Costs (HKD thousands) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Interest expense on bank borrowings | 2,965 | 1,667 | | Interest expense on lease liabilities | 497 | 528 | | Less: Amount capitalized | (662) | (1,602) | | **Total** | **2,800** | **3,442** | [8. Profit Before Income Tax](index=14&type=section&id=8.%20%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) This section lists various expenses deducted or included in the calculation of profit before income tax, including amortization, depreciation, staff costs, and R&D costs, with a significant increase in R&D costs recognized as expenses - R&D costs recognized as expenses increased from **HKD 12,479 thousand** in H1 2024 to **HKD 21,664 thousand** in H1 2025[29](index=29&type=chunk) - Staff costs (excluding directors' emoluments) slightly increased from **HKD 147,277 thousand** in H1 2024 to **HKD 147,453 thousand** in H1 2025[29](index=29&type=chunk) [9. Income Tax](index=14&type=section&id=9.%20%E6%89%80%E5%BE%97%E7%A8%85) This section explains the Group's income tax policy, including no assessable profits in Hong Kong and a 15% preferential tax rate for its principal operating subsidiary in Zhuhai, China, as a high-tech enterprise - No provision for profits tax in Hong Kong; Zhuhai high-tech enterprise subsidiary enjoys a **15% preferential tax rate**[30](index=30&type=chunk) [10. Dividends](index=15&type=section&id=10.%20%E8%82%A1%E6%81%AF) This section discloses that the Board has resolved to declare an interim dividend of HKD 0.07 per ordinary share for the six months ended June 30, 2025, which is higher than HKD 0.06 per share in the prior year - The Board declared an interim dividend of **HKD 0.07 per share**, an increase from **HKD 0.06 per share** in the prior year[32](index=32&type=chunk) [11. Earnings Per Share](index=15&type=section&id=11.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This section provides the profit and share count data used to calculate basic and diluted earnings per share, indicating growth in both basic and diluted EPS EPS Calculation Data (HKD thousands/share) | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit attributable to owners of the Company for basic EPS | 163,401 | 157,440 | | Profit attributable to owners of the Company for diluted EPS | 163,401 | 159,525 | | Weighted average number of ordinary shares for basic EPS | 567,035,271 | 567,547,170 | | Weighted average number of ordinary shares for diluted EPS | 567,035,271 | 592,970,898 | [12. Property, Plant and Equipment](index=16&type=section&id=12.%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) This section details the changes in cost, accumulated depreciation, and carrying amount of property, plant and equipment, showing an increase in total carrying amount primarily due to additions and exchange adjustments - Total carrying amount of property, plant and equipment increased from **HKD 393,980 thousand** as of December 31, 2024, to **HKD 439,832 thousand** as of June 30, 2025[35](index=35&type=chunk) [13. Other Intangible Assets](index=17&type=section&id=13.%20%E5%85%B6%E4%BB%96%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) This section discloses the cost, accumulated amortization and impairment losses, and carrying amount of other intangible assets, primarily comprising development costs and acquired intangible assets, with SkQ1 eye drops and anti-VEGF pharmaceutical products being major components, showing continuous growth in carrying amount - Carrying amount of other intangible assets increased from **HKD 1,127,654 thousand** as of December 31, 2024, to **HKD 1,186,666 thousand** as of June 30, 2025[36](index=36&type=chunk) - Acquired intangible assets primarily include SkQ1 eye drop development costs of approximately **HKD 348.4 million** and anti-VEGF pharmaceutical product development costs of approximately **HKD 426.7 million**[36](index=36&type=chunk) [14. Convertible Loan Receivable](index=18&type=section&id=14.%20%E6%87%89%E6%94%B6%E5%8F%AF%E6%8F%9B%E8%82%A1%E8%B2%B8%E6%AC%BE) This section details the terms, principal amounts, maturity dates, and fair value changes of Convertible Loans A and B, and discloses the post-reporting period acquisition of Antikor, which resulted in the offset of Convertible Loan B - As of August 15, 2025, the Group acquired **100% equity interest in Antikor**, and Convertible Loan B has been offset at the consolidated level[37](index=37&type=chunk) - Convertible Loan A has a principal of **USD 1.6 million (approximately HKD 12.5 million)**, convertible into **45% equity** of the investee, with maturity extended to **July 31, 2026**[38](index=38&type=chunk) Total Convertible Loan Receivable (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Convertible Loan A | 15,196 | 14,545 | | Convertible Loan B | 30,725 | 30,725 | | **Total** | **45,921** | **45,270** | | Less: Current portion | (30,725) | (30,725) | | Non-current portion | 15,196 | 14,545 | - The fair value of convertible loan receivable is calculated using a binomial option pricing model, with key assumptions including share price and expected volatility[40](index=40&type=chunk) [15. Financial Assets at Fair Value Through Other Comprehensive Income and Financial Assets at Fair Value Through Profit or Loss](index=20&type=section&id=15.%20%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E5%85%A5%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E4%B9%8B%E8%B2%A1%E5%8B%99%E8%B3%87%E7%94%A2%E5%8F%8A%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E4%B9%8B%E8%B2%A1%E5%8B%99%E8%B3%87%E7%94%A2) This section lists listed and unlisted equity investments measured at fair value, explaining their classification and fair value measurement methods, showing a decrease in non-current equity investments designated at fair value through other comprehensive income Financial Assets Measured at Fair Value (HKD thousands) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current - Equity investments designated at fair value through other comprehensive income | 26,501 | 44,224 | | Non-current - Equity investments designated at fair value through profit or loss | 3,098 | 2,590 | | Current - Equity investments designated at fair value through profit or loss | 2,390 | 3,572 | - Equity investments designated at fair value through other comprehensive income are strategic, while those designated at fair value through profit or loss are held for trading[43](index=43&type=chunk) [16. Inventories](index=21&type=section&id=16.%20%E5%AD%98%E8%B2%A8) This section discloses the composition of inventories, including raw materials, work-in-progress, and finished goods, with the total increasing from HKD 58,938 thousand as of December 31, 2024, to HKD 64,939 thousand as of June 30, 2025 Inventory Composition (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | 16,593 | 14,265 | | Work-in-progress | 12,625 | 10,631 | | Finished goods | 35,721 | 34,042 | | **Total** | **64,939** | **58,938** | [17. Trade and Other Receivables](index=22&type=section&id=17.%20%E6%87%89%E6%94%B6%E8%B2%A8%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) This section details the composition and aging analysis of trade and other receivables, and states that the Group grants an average credit period of 90 days to trade customers Trade and Other Receivables (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (net of impairment) | 614,458 | 521,059 | | Other receivables | 46,721 | 65,236 | | **Total** | **661,179** | **586,295** | - The Group grants an average credit period of **90 days** to trade customers[45](index=45&type=chunk) Aging Analysis of Trade Receivables (HKD thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 60 days | 383,687 | 349,680 | | 61 to 90 days | 93,509 | 54,167 | | Over 90 days | 137,262 | 117,212 | [18. Deposits and Prepayments](index=23&type=section&id=18.%20%E6%8C%89%E9%87%91%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) This section discloses the composition of deposits and prepayments, including deposits for property, plant and equipment, prepayments for finished goods, and other deposits and prepayments, with the total amount slightly decreasing Composition of Deposits and Prepayments (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Deposits paid for acquisition of property, plant and equipment | 31,786 | 28,712 | | Prepayments for purchase of finished goods | 15,465 | 25,718 | | Other deposits | 2,856 | 1,935 | | Other prepayments | 23,755 | 18,951 | | **Total** | **73,862** | **75,316** | [19. Trade and Other Payables](index=23&type=section&id=19.%20%E6%87%89%E4%BB%98%E8%B2%A8%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) This section lists the composition and aging analysis of trade and other payables, with accrued sales and marketing costs being a major component, and the total amount slightly decreasing Trade and Other Payables (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 14,136 | 7,359 | | Other payables and accrued expenses | 505,354 | 538,038 | | **Total** | **519,490** | **545,397** | - Other payables and accrued expenses include approximately **HKD 448.8 million** in accrued sales and marketing costs[49](index=49&type=chunk) Aging Analysis of Trade Payables (HKD thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 60 days | 10,070 | 7,123 | | 61 to 90 days | 2,262 | 46 | | Over 90 days | 1,804 | 190 | [20. Bank Borrowings](index=24&type=section&id=20.%20%E9%8A%80%E8%A1%8C%E5%80%9F%E8%B2%B8) This section discloses the collateral for bank borrowings, approved and utilized credit facilities, and the currency and interest rates of the borrowings, showing a significant increase in utilized credit facilities - Bank borrowings are secured by corporate guarantees from the Company and one of its subsidiaries[51](index=51&type=chunk) - As of June 30, 2025, non-revolving bank facilities of approximately **HKD 737.3 million** were approved, of which approximately **HKD 339.1 million** were utilized (December 31, 2024: HKD 206.3 million)[51](index=51&type=chunk) - All bank borrowings are denominated in RMB and bear floating interest rates ranging from **2.4% to 2.8%**[51](index=51&type=chunk) [21. Share Capital](index=24&type=section&id=21.%20%E8%82%A1%E6%9C%AC) This section lists the changes in authorized and issued share capital, including shares repurchased and cancelled during the period, resulting in a slight decrease in issued share capital Changes in Issued Share Capital (Shares/HKD thousands) | Item | Number of Shares | HKD thousands | | :--- | :--- | :--- | | January 1, 2024 | 567,585,000 | 56,759 | | Shares repurchased and cancelled | (456,000) | (46) | | December 31, 2024 | 567,129,000 | 56,713 | | Shares repurchased and cancelled | (123,000) | (12) | | **June 30, 2025** | **567,006,000** | **56,701** | - During the period, **123,000 shares** were repurchased and cancelled, with a total consideration of approximately **HKD 325,270**, paid from retained profits[53](index=53&type=chunk) [22. Fair Value Measurement of Financial Instruments](index=25&type=section&id=22.%20%E8%B2%A1%E5%8B%99%E5%B7%A5%E5%85%B7%E4%B9%8B%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F) This section explains the hierarchy of fair value measurement for financial instruments (Level 1, Level 2, Level 3) and provides an analysis of financial instruments carried at fair value, including listed equity investments, unlisted equity investments, and convertible loan receivable - Fair value measurements are categorized into three levels: **Level 1 (quoted prices in active markets)**, **Level 2 (observable inputs)**, **Level 3 (unobservable inputs)**[56](index=56&type=chunk) - Convertible loan receivable and equity investments are measured and disclosed at fair value[54](index=54&type=chunk) Analysis of Financial Instruments Carried at Fair Value (HKD thousands) | Type | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | **June 30, 2025** | | | | | | Listed equity investments | 14,294 | – | – | 14,294 | | Unlisted equity investments | – | 17,695 | – | 17,695 | | Convertible loan receivable | – | – | 45,921 | 45,921 | | **December 31, 2024** | | | | | | Listed equity investments | 33,199 | – | – | 33,199 | | Unlisted equity investments | – | 17,187 | – | 17,187 | | Convertible loan receivable | – | – | 45,270 | 45,270 | [23. Capital Commitments](index=27&type=section&id=23.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) This section discloses the Group's contracted but unprovided capital commitments, primarily for property, plant and equipment, development costs, acquired intangible assets, and new and existing factory construction, with the total amount decreasing year-on-year Capital Commitments (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property, plant and equipment | 409 | 591 | | Development costs | 9,612 | 9,339 | | Acquired intangible assets | 62,812 | 117,919 | | Construction of new factory | 159,889 | 170,607 | | Expansion of existing factory | 10,805 | 18,723 | | **Total** | **243,527** | **317,179** | [24. Related Party Transactions](index=27&type=section&id=24.%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) This section lists the details of emoluments paid to the Group's key management personnel (all directors), with the total amount remaining largely consistent with the prior period Emoluments Paid to Key Management Personnel (HKD thousands) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Salaries and other benefits | 3,615 | 3,644 | | Pension scheme contributions | 44 | 26 | | **Total** | **3,659** | **3,670** | [25. Events After Reporting Period](index=28&type=section&id=25.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) This section discloses the significant post-reporting period event of the Group's acquisition of 100% equity interest in Antikor, aimed at expanding into the oncology treatment field - After the reporting period, the Group acquired **100% equity interest in Antikor** on August 15, 2025, to expand into the cancer treatment field[64](index=64&type=chunk) [26. Comparative Figures](index=28&type=section&id=26.%20%E6%AF%94%E8%BC%83%E6%95%B8%E5%AD%97) This section mentions that certain comparative figures in Notes 4, 6, and 8 to the condensed consolidated interim financial statements have been reclassified to conform to the current period's presentation - Certain comparative figures in Notes 4, 6, and 8 have been reclassified to conform to the current period's presentation[65](index=65&type=chunk) [27. Approval of Condensed Consolidated Interim Financial Statements](index=28&type=section&id=27.%20%E6%89%B9%E5%87%86%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section states that the Board approved and authorized for issue the condensed consolidated interim financial statements on August 26, 2025 - The Board approved and authorized for issue the condensed consolidated interim financial statements on August 26, 2025[66](index=66&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This chapter discusses the Group's business vision, operating strategies, product portfolio, R&D progress, market development, financial performance, liquidity, and risk management, along with future outlook, emphasizing strategies to address China's centralized procurement policies and continuous investment in ophthalmology and oncology [Business Review and Outlook](index=29&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) This section outlines the Group's vision, core business (rb-bFGF gene engineering drugs) and its contributions to ophthalmology and surgery, and plans to expand into oncology, orthopedics, and neurology through strategic investments, with the bFGF series products being the main revenue source and new products continuously approved for market - The Group's vision is to be a socially responsible enterprise, focusing on R&D, production, and sales of rb-bFGF gene engineering drugs[67](index=67&type=chunk) - Core business is contributed by ophthalmology and surgery segments, with strategic investments expanding into oncology, orthopedics, and neurology[67](index=67&type=chunk) - bFGF series products account for approximately **83.5% of total revenue**, with three being National Class I biological agents and four listed in the National Medical Insurance Catalogue[67](index=67&type=chunk) - In July 2025, the Group obtained NMPA approval for the registration and commercialization of multi-dose Diquafosol Sodium Eye Drops in China[68](index=68&type=chunk) [Significant Business Development Activities](index=30&type=section&id=%E9%87%8D%E8%A6%81%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95%E6%B4%BB%E5%8B%95) This section details the Group's significant investments and developments in its product and R&D pipeline, including SkQ1 for dry eye disease, anti-VEGF licensed products co-developed with Fosun Pharma, and collaborations with other companies, aiming to strengthen the product portfolio and expand into new therapeutic areas [SkQ1 Product](index=30&type=section&id=SkQ1%E7%94%A2%E5%93%81) This section introduces the late-stage clinical development progress of the SkQ1 product for dry eye disease, with positive results from the VISTA-2 trial and global exclusive rights secured, currently in the final stages of CMC, know-how, and IP transfer, with plans to divest assets into Singapore DunaVision Pte. Ltd. for continued development - SkQ1 product's Phase III clinical trial (VISTA-2) yielded positive results, demonstrating its potential to address oxidative stress in dry eye disease[71](index=71&type=chunk) - The Group has strategically secured global exclusive rights related to SkQ1 in the ophthalmic field[71](index=71&type=chunk) - The total actual investment cost for SkQ1 product and global rights is approximately **HKD 348.4 million**, representing **10.8% of the Group's total assets**[73](index=73&type=chunk) - SkQ1 product assets are being divested and injected into Singapore DunaVision Pte. Ltd. for continued development and execution of SkQ1 product and global rights[73](index=73&type=chunk) [Anti-VEGF Licensed Product](index=31&type=section&id=%E6%8A%97VEGF%E8%A8%B1%E5%8F%AF%E7%94%A2%E5%93%81) This section describes the clinical trial progress of the anti-VEGF licensed product (HLX04-O) co-developed with Shanghai Fosun Pharmaceutical (Group) Co., Ltd., with Phase III clinical trials ongoing in multiple countries globally and the first patient dosed in China, and the Biologics License Application has been accepted by China NMPA, indicating significant market potential - The anti-VEGF licensed product HLX04-O, co-developed with Fosun Pharma, has been approved for Phase III clinical trials in Australia, USA, Singapore, Russia, Serbia, and EU countries for wet AMD[74](index=74&type=chunk) - The Biologics License Application (BLA) for HLX04-O was accepted by China NMPA in August 2025[74](index=74&type=chunk) - The maximum committed investment for the anti-VEGF licensed product is **USD 67 million (approximately HKD 525.9 million)**, with actual investment costs of approximately **HKD 426.7 million**, representing **13.2% of total assets**[76](index=76&type=chunk) [Other Collaborations](index=32&type=section&id=%E5%85%B6%E4%BB%96%E5%90%88%E4%BD%9C) This section discloses the Group's collaboration with Beijing Airdoc Technology Co., Ltd. to jointly operate an AI-powered fundus imaging business, and an exclusive distribution agreement with Zhejiang Visionary Pharma Co., Ltd. for Emedastine Difumarate and Oxybuprocaine Hydrochloride Eye Drops, aiming to further enrich the ophthalmic product portfolio and strengthen market position - The Group has entered into a collaboration with Beijing Airdoc Technology Development Co., Ltd. to jointly operate an AI-powered fundus imaging business[77](index=77&type=chunk) - The Group has entered into an exclusive distribution agreement with Zhejiang Visionary Pharma Co., Ltd. for Emedastine Difumarate and Oxybuprocaine Hydrochloride Eye Drops to enrich its ophthalmic product portfolio[77](index=77&type=chunk) [Honors and Awards in 2025](index=33&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E7%8D%B2%E5%BE%97%E7%9A%84%E6%A6%AE%E8%AD%BD%E5%8F%8A%E7%8D%8E%E9%A0%85) This section reports that Zhuhai Essense Bio-Pharmaceutical Co., Ltd., a wholly-owned subsidiary, was listed among Zhuhai City's Top 100 Innovative Enterprises for overall innovation strength and economic contribution in 2024 - Zhuhai Essense Bio-Pharmaceutical Co., Ltd. was listed among Zhuhai City's Top 100 Innovative Enterprises for overall innovation strength and economic contribution in 2024[78](index=78&type=chunk) [Market Development](index=33&type=section&id=%E5%B8%82%E5%A0%B4%E9%96%8B%E7%99%BC) This section describes the Group's extensive sales network in China, covering over 14,100 hospitals and medical institutions and approximately 2,100 pharmacies, and its proactive strategic initiatives to drive product growth and market expansion, including expanding clinical indications, increasing patient accessibility, developing auxiliary sales channels, and fostering medical technology e-platforms - As of June 30, 2025, the Group has **46 regional sales offices** in China, covering over **14,100 hospitals and medical institutions** and approximately **2,100 pharmacies**[79](index=79&type=chunk) - The Group enhances its competitiveness through strategic initiatives such as expanding clinical indications for commercialized products, increasing patient accessibility in lower-tier Chinese cities, developing auxiliary sales channels, and fostering medical technology e-platforms[81](index=81&type=chunk) [Research and Development](index=33&type=section&id=%E7%A0%94%E7%99%BC) This section emphasizes the Group's commitment to science and innovation, focusing on ophthalmology, with recombinant protein technology and blow-fill-seal platforms, and lists 18 R&D programs, including 4 ophthalmic programs in clinical stages, with R&D bases globally and numerous patents - The R&D department focuses on ophthalmology, possessing growth factor, antibody, drug formulation technologies, and a blow-fill-seal platform[80](index=80&type=chunk) - The blow-fill-seal platform is used to produce preservative-free single-dose drugs, with **6 commercialized** and several in-development products targeted for commercialization within the next two to five years[82](index=82&type=chunk) - The Group has **18 R&D programs** from pre-clinical to clinical stages, with **4 ophthalmic programs** considered mid-term growth drivers, including SkQ1 eye drops and intravitreal bevacizumab for wet AMD[82](index=82&type=chunk)[84](index=84&type=chunk) - The Group holds a total of **111 patent certificates or authorizations**, including **81 invention patents**[82](index=82&type=chunk) - The Group has established multiple R&D bases in Zhuhai (China), Boston (USA), London (UK), and Singapore[83](index=83&type=chunk) [Construction of Second Plant in China](index=35&type=section&id=%E6%96%BC%E4%B8%AD%E5%9C%8B%E5%BB%BA%E9%80%A0%E7%AC%AC%E4%BA%8C%E9%96%93%E5%BB%A0%E6%88%BF) This section describes the progress of the second plant construction in Zhuhai High-tech Zone, which will serve as an R&D center, additional manufacturing facility, administrative offices, and staff dormitories, with construction largely completed but halted due to a legal dispute, and a new general contractor appointed with completion expected in 2026 or 2027 - The second plant is located in Zhuhai High-tech Innovation Coast, covering approximately **15,000 square meters** with a construction area of about **58,000 square meters**[86](index=86&type=chunk) - Plant construction was halted due to a legal dispute with the general contractor, with the court ruling the general contractor to pay approximately **HKD 24.6 million** in breach of contract compensation to the Group[86](index=86&type=chunk) - The Group has appointed a new general contractor, and the project is expected to be completed in **2026 or 2027**[86](index=86&type=chunk) [Litigation with Guangxi Wanshoutang Pharmaceutical Co., Ltd.](index=36&type=section&id=%E8%88%87%E5%BB%A3%E8%A5%BF%E8%90%AC%E5%A3%BD%E5%A0%82%E8%97%A5%E6%A5%AD%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E7%9A%84%E8%A8%B4%E8%A8%9F) This section discloses the progress of two lawsuits between the Group and Guangxi Wanshoutang Pharmaceutical Co., Ltd., where the Group won a counterclaim, with the counterparty required to repay approximately HKD 48.9 million, but in another lawsuit, the Group was ordered to pay approximately HKD 14.3 million in compensation and has filed an appeal - In the Group's counterclaim against Guangxi Wanshoutang, the court ruled that the counterparty must repay approximately **HKD 48.9 million** to the Group[87](index=87&type=chunk) - In the lawsuit initiated by Guangxi Wanshoutang, the court ruled that the Group must pay approximately **HKD 14.3 million** in compensation to the counterparty, and the Group has filed an appeal[87](index=87&type=chunk) [Financial Review](index=36&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the challenges faced by China's pharmaceutical industry due to centralized procurement, which the Group addresses by expanding indication coverage and patient accessibility, and provides a detailed analysis of H1 2025 revenue, profit, segment contributions, expenses, cash, and bank borrowings, showing growth in revenue and profit, but increased distribution and selling expenses and decreased administrative expenses - China's pharmaceutical industry faces challenges from centralized procurement policies, leading to significant drug price reductions, which the Group addresses by expanding indication coverage and patient accessibility[89](index=89&type=chunk)[90](index=90&type=chunk) - 2025 H1 revenue was approximately **HKD 876.5 million**, a **5.8% year-on-year increase**; profit for the period was approximately **HKD 163.4 million**, a **3.8% year-on-year increase**[90](index=90&type=chunk)[91](index=91&type=chunk) - Ophthalmology and surgery segments accounted for approximately **47.6%** and **51.2%** of the Group's revenue, respectively, with bFGF series products contributing approximately **83.5% of total revenue**[92](index=92&type=chunk) - Distribution and selling expenses increased **4.7% to HKD 471.6 million**, while administrative expenses decreased **3% to HKD 99.7 million**[93](index=93&type=chunk)[94](index=94&type=chunk) - Total R&D expenses were approximately **HKD 66.5 million**, representing **7.6% of revenue**, of which approximately **HKD 44.8 million** was capitalized[95](index=95&type=chunk) - As of June 30, 2025, the Group's cash and cash equivalents were approximately **HKD 640.5 million**, and bank borrowings were approximately **HKD 270.5 million**[95](index=95&type=chunk) [Future Plans for Material Investments or Capital Assets](index=39&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) This section states that, other than what is disclosed in this announcement, the Group had no immediate plans for material investments or acquisitions of material capital assets as of June 30, 2025 - Other than disclosed, the Group had no immediate plans for material investments or capital asset acquisitions as of June 30, 2025[97](index=97&type=chunk) [Liquidity and Financial Resources](index=39&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) This section discloses the Group's bank credit facilities, cash and cash equivalents, and debt-to-asset ratio, indicating a healthy liquidity position and sufficient working capital to meet capital commitments and daily operational needs - As of June 30, 2025, the Group had approved bank credit facilities of approximately **HKD 737.3 million**, of which approximately **HKD 339.1 million** were utilized[98](index=98&type=chunk) - As of June 30, 2025, cash and cash equivalents were approximately **HKD 640.5 million**, and the debt-to-asset ratio was **29.7%**[98](index=98&type=chunk) - Healthy liquidity and working capital, coupled with unutilized bank facilities, are sufficient to meet the Group's capital commitments and support daily operations[99](index=99&type=chunk) [Pledge of Group Assets](index=40&type=section&id=%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) This section states that as of June 30, 2025, no assets of the Group were pledged as collateral for bank financing - As of June 30, 2025, no assets of the Group were pledged as collateral for bank financing[100](index=100&type=chunk) [Capital Commitments](index=40&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) This section discloses that as of June 30, 2025, the Group's capital commitments amounted to approximately HKD 243.5 million - As of June 30, 2025, the Group's capital commitments amounted to approximately **HKD 243.5 million**[101](index=101&type=chunk) [Contingent Liabilities](index=40&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) This section states that as of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[102](index=102&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=40&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%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) This section reports that there were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period ended June 30, 2025 - During the period ended June 30, 2025, there were no material acquisitions or disposals of subsidiaries, associates, or joint ventures[103](index=103&type=chunk) [Material Investments Held](index=40&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) This section states that, other than what is disclosed in this announcement, the Group held no material investments as of June 30, 2025 - Other than disclosed, the Group held no material investments as of June 30, 2025[104](index=104&type=chunk) [Foreign Exchange Risk](index=40&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group's policy is to borrow and hold cash in local currencies to mitigate currency risk, and the directors believe the Group's operating cash flows and liquidity are not exposed to significant foreign exchange risk, thus no hedging arrangements are in place - The Group's policy is to borrow and hold cash in local currencies to mitigate currency risk[105](index=105&type=chunk) - The Group's assets, liabilities, and transactions are primarily denominated in HKD, RMB, or USD, and directors believe there is no significant foreign exchange risk, thus no hedging arrangements are in place[105](index=105&type=chunk) [Treasury Policy](index=41&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group primarily funds its operations through internally generated cash flows, bank, and other borrowings, and holds these resources in interest-bearing bank accounts, mainly denominated in RMB, HKD, and USD - The Group primarily funds its operations through internally generated cash flows, bank, and other borrowings[106](index=106&type=chunk) - The Group holds resources in interest-bearing bank accounts, mainly denominated in RMB, HKD, and USD[106](index=106&type=chunk) [Employees](index=41&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group had 1,426 full-time employees, with total employee remuneration increasing, determined based on performance, experience, and current industry practices - As of June 30, 2025, the Group had **1,426 full-time employees** (December 31, 2024: 1,450 employees)[107](index=107&type=chunk) - Total employee remuneration (including directors' emoluments) for the review period was approximately **HKD 162.1 million**, an increase from **HKD 159.4 million** in the prior period[107](index=107&type=chunk) [Share Capital and Share Options](index=41&type=section&id=%E8%82%A1%E6%9C%AC%E5%8F%8A%E8%B3%BC%E8%82%A1%E6%AC%8A) This chapter states that the Company's authorized share capital remained unchanged during the review period and details the objectives, eligibility, maximum number of shares, quota limits, exercise period, and exercise price determination basis of the share option scheme, with no share options granted, exercised, lapsed, or cancelled during the reporting period [Scheme Summary](index=41&type=section&id=%E8%A8%88%E5%8A%83%E6%A6%82%E8%A6%81) This section details the objectives of the share option scheme (recognizing contributions, attracting and retaining talent, incentivizing performance, strengthening relationships, maintaining flexibility), eligible participant categories and eligibility criteria, as well as share number limits, exercise period, and exercise price determination basis under the scheme, with the remaining term of the scheme being approximately 7.8 years - The share option scheme aims to recognize eligible participants' contributions, attract and retain talent, incentivize performance, strengthen business and employee relationships, and maintain flexibility in awards[109](index=109&type=chunk)[111](index=111&type=chunk) - Eligible participants include directors/employees of the Company or its subsidiaries, directors/employees of holding companies/fellow subsidiaries/associates, and any person providing long-term development services to the Group[111](index=111&type=chunk) - The scheme's authorized limit is **10.0% of issued shares** on the approval date (i.e., **57,064,900 shares**), with a Class C participant limit of **1.0% (i.e., 5,706,490 shares)**[113](index=113&type=chunk) - The option exercise price cannot be less than the highest of the closing price on the grant date, the average closing price for the five trading days immediately preceding the grant date, and the nominal value of the share[115](index=115&type=chunk)[116](index=116&type=chunk) - The remaining term of the scheme is approximately **7.8 years**, expiring on **June 8, 2033**[116](index=116&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=46&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E8%A1%8C%E6%94%BF%E7%B8%BD%E8%A3%81%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%E5%88%B8%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This chapter discloses the long positions of directors and the chief executive in the Company's shares as of June 30, 2025, including the number of shares and approximate percentage held by Yan Ming Chih, Fong Hoi Chau, Yan Yin Lung, and Yau Lai Man, with Yan Ming Chih being the largest shareholder among the directors Directors' and Chief Executive's Long Positions in the Company's Shares | Name | Capacity | Number of Ordinary Shares/Underlying Shares | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Yan Ming Chih | Beneficial owner and interest in controlled corporation | 153,945,667 | 27.15% | | Fong Hoi Chau | Beneficial owner | 5,244,300 | 0.92% | | Yan Yin Lung | Beneficial owner | 2,039,000 | 0.36% | | Yau Lai Man | Beneficial owner | 46,000 | 0.01% | - Yan Ming Chih's interests include his personal holdings and shares held through Dynatech Ventures Pte Ltd, and he is deemed to have an interest in these shares[119](index=119&type=chunk) [Substantial Shareholders' and Other Persons' Interests Required to be Disclosed Under Part XV of the Securities and Futures Ordinance](index=48&type=section&id=%E9%A0%88%E6%A0%B9%E6%93%9A%E8%AD%89%E5%88%B8%E5%8F%8A%E6%9C%9F%E8%B2%A8%E6%A2%9D%E4%BE%8B%E7%AC%ACXV%E9%83%A8%E6%8A%AB%E9%9C%B2%E6%AC%8A%E7%9B%8A%E7%9A%84%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) This chapter discloses the long positions of substantial shareholders and other persons (excluding directors and the chief executive) in the Company's shares as of June 30, 2025, including the number of shares and approximate percentage held by Yan Ming Kit and Lau Wai Kuen, with Yan Ming Kit being a substantial shareholder, and Lau Wai Kuen deemed to have an interest due to her spousal relationship Substantial Shareholders' and Other Persons' Long Positions in the Company's Shares | Name | Capacity | Number of Ordinary Shares/Underlying Shares | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Yan Ming Kit | Beneficial owner and interest in controlled corporation | 152,020,667 | 26.81% | | Lau Wai Kuen | Family interest | 153,945,667 | 27.15% | - Yan Ming Kit's interests include his personal holdings and shares held through Dynatech Ventures Pte Ltd, and he is deemed to have an interest in these shares[122](index=122&type=chunk) - Lau Wai Kuen is the spouse of Executive Director Yan Ming Chih and is deemed to have an interest in the shares in which Yan Ming Chih has an interest under the SFO[122](index=122&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=49&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) This chapter reports that the Company repurchased and cancelled 123,000 shares on the Stock Exchange during the review period, for a total consideration of HKD 325,270, with this action aiming to enhance the Group's net asset value per share and earnings per share for the benefit of all shareholders 2025 H1 Share Repurchase Details | Month | Number of Shares Repurchased | Total Price Paid (HKD) | | :--- | :--- | :--- | | 2025 January | 53,000 | 145,970 | | 2025 February | 70,000 | 179,300 | | **Total** | **123,000** | **325,270** | - Share repurchases aim to enhance the Group's net asset value per share and earnings per share, funded entirely by the Company's retained profits[123](index=123&type=chunk) [Corporate Governance](index=49&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This chapter states that the Company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the review period - The Company has complied with the code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the review period[124](index=124&type=chunk) [Audit Committee](index=49&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) This chapter explains that the Company's Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed internal control systems and financial reporting matters, including the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025 - The Audit Committee reviewed the Group's accounting principles and practices, discussed internal control systems and financial reporting, including the condensed consolidated interim financial statements[125](index=125&type=chunk) [Interim Dividend](index=50&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) This chapter announces that the Board resolved on August 26, 2025, to declare an interim dividend of HKD 0.07 per ordinary share for the six months ended June 30, 2025 (higher than HKD 0.06 per share in the prior year), to be paid in cash on September 23, 2025 - The Board resolved to declare an interim dividend of **HKD 0.07 per ordinary share** for the six months ended June 30, 2025 (prior year: HKD 0.06 per share)[126](index=126&type=chunk) - The interim dividend will be paid in cash on **Tuesday, September 23, 2025**[126](index=126&type=chunk) [Closure of Register of Members](index=50&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E6%9D%B1%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C) This chapter notifies that to qualify for the interim dividend, the Company will close its register of members from Wednesday, September 10, 2025, to Friday, September 12, 2025, and all share transfer documents must be lodged by 4:30 p.m. on September 9, 2025 - The Company will close its register of members from **September 10 to September 12, 2025**, to determine eligibility for the interim dividend[127](index=127&type=chunk) - All share transfer documents must be lodged with the Company's Hong Kong Share Registrar by **4:30 p.m. on September 9, 2025**[127](index=127&type=chunk) [Directors' Securities Transactions](index=50&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) This chapter states that after specific enquiries with all directors, all directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers set out in the Listing Rules during the six months ended June 30, 2025 - All directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers in the Listing Rules during the review period[128](index=128&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SUNDART HOLDINGS LIMITED 承達集團有限公司 （根據英屬處女群島法例註冊成立的有限公司） （股份代號：1568） 截至2025年6月30日止六個月 中期業績公告 財務摘要 （除非另有指明，否則為百萬港元） | | 截至6月30日止六個月 | | | | --- | --- | --- | --- | | | 2025年 | 2024年 | | | | （未經審核） | （未經審核） | 變動 | | 收益 | 2,282.8 | 2,766.1 | (17.5%) | | 毛利 | 265.2 | 384.9 | (31.1%) | | 毛利率 | 11.6% | 13.9% | (2.3%) | | 本公司擁有人應佔利潤 | 135.4 | 167.2 | (19.0%) | | 每股基本及攤薄盈利 （港仙） | 6.27 | 7.75 | (19.1%) | | | 2025年 ...