[Financial Summary](index=1&type=section&id=Financial%20Summary) The company achieved revenue growth and a profit turnaround for the six months ended June 30, 2025, with no interim dividend declared Financial Summary for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Period Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 154,376 | 130,666 | 18.1 | | Gross Profit | 22,875 | 20,835 | 9.8 | | Profit/(Loss) for the Period | 1,787 | (4,640) | 138.5 | - The Board has resolved not to declare any interim dividend for the reporting period (prior period: nil)[6](index=6&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's business, financial performance, employee policies, liquidity, key relationships, cash flow, debt, financial ratios, and market risks [Business Review](index=2&type=section&id=Business%20Review) As an online advertising platform, the company focuses on providing overseas online advertising services to Chinese advertisers, expanding media coverage and technological innovation, particularly in AI-driven video generation and marketing strategies, with an increase in advertiser numbers - The company is positioned as an online advertising platform, providing overseas online advertising services to Chinese advertisers, covering top media publishers such as Meta, Google, and TikTok[7](index=7&type=chunk) - As of June 30, 2025, the number of advertisers reached **1,498**, an increase from **1,332** as of December 31, 2024[10](index=10&type=chunk) - The company continues to strengthen the computing infrastructure of its AdTensor platform, deploying industry-leading text-to-video (T2V) and image-to-video (I2V) technologies, and utilizing AI algorithms for intelligent insights and multimodal innovation[11](index=11&type=chunk)[12](index=12&type=chunk) [Financial Review](index=5&type=section&id=Financial%20Review) During the reporting period, the company's revenue grew by **18.1%**, primarily due to favorable pricing policies and expanded market share; cost of sales increased with business growth, and gross profit margin slightly decreased; the company turned profitable, mainly influenced by increased foreign exchange gains and reduced administrative expenses Revenue Breakdown (by Pricing Model) | Pricing Model | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | CPA Pricing Model — Designated Action Revenue | 135,171 | 87.6 | 112,900 | 86.4 | | CPC/CPM Pricing Model — Designated Action Revenue | 7,113 | 4.6 | 2,787 | 2.1 | | CPC/CPM Pricing Model — Agreed Rebates | 12,092 | 7.8 | 14,979 | 11.5 | | Subtotal (CPC/CPM) | 19,205 | 12.4 | 17,766 | 13.6 | | Total | 154,376 | 100.0 | 130,666 | 100.0 | Revenue Breakdown (by Advertising Type) | Advertising Type | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Financial | 58,202 | 37.7 | 33,316 | 25.5 | | E-commerce | 48,625 | 31.5 | 56,764 | 43.4 | | Utility Tools and Content App Developers | 38,432 | 24.9 | 31,455 | 24.1 | | Education | 5,026 | 3.3 | 3,134 | 2.4 | | Others | 4,091 | 2.6 | 5,997 | 4.6 | | Total | 154,376 | 100.0 | 130,666 | 100.0 | - Total revenue increased by approximately **RMB23.7 million** or **18.1%** from approximately **RMB130.7 million** in the prior period to approximately **RMB154.4 million** in the reporting period, primarily due to the company offering more favorable pricing policies to advertisers, encouraging increased advertising spend and expanding market share[16](index=16&type=chunk) Cost of Sales Breakdown | Cost of Sales Item | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Traffic Acquisition Cost - Facebook | 51,649 | 39.2 | 27,963 | 25.4 | | Traffic Acquisition Cost - Google | 48,617 | 37.0 | 36,702 | 33.4 | | Traffic Acquisition Cost - TikTok | 23,509 | 17.9 | 38,515 | 35.1 | | Traffic Acquisition Cost - Others | 2,361 | 1.8 | 2,148 | 2.0 | | Subtotal (Traffic Acquisition Cost) | 126,136 | 95.9 | 105,328 | 95.9 | | Expenses for External Optimizers and Designers | 1,878 | 1.4 | 1,999 | 1.8 | | Salaries and Benefits Paid to Internal Optimizers and Designers | 3,487 | 2.7 | 2,504 | 2.3 | | Total | 131,501 | 100.0 | 109,831 | 100.0 | - Total cost of sales increased by approximately **RMB21.7 million** or **19.8%** from approximately **RMB109.8 million** in the prior period to approximately **RMB131.5 million** in the reporting period, primarily due to increased traffic acquisition costs from purchasing advertising slots in the financial industry and an increase in the number of optimizers and designers employed to enhance service capabilities[18](index=18&type=chunk) Total Gross Profit and Gross Profit Margin | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Revenue | 154,376 | 130,666 | | Total Cost of Sales | 131,501 | 109,831 | | Total Gross Profit | 22,875 | 20,835 | | Total Gross Profit Margin | 14.8% | 15.9% | - The company recorded a profit of approximately **RMB1.8 million** in the reporting period, compared to a loss of approximately **RMB4.6 million** in the prior period, achieving a turnaround to profitability[25](index=25&type=chunk) [Employees and Remuneration Policy](index=9&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had **177** employees, with optimizers and designers accounting for the largest proportion; the company offers competitive remuneration and benefits, along with share option and share award schemes to incentivize employees Employee Breakdown (by Function) | Function | Number of Employees | % of Total | | :--- | :--- | :--- | | Optimizers and Designers | 71 | 40.1 | | Sales and Marketing | 30 | 16.9 | | Operations | 24 | 13.6 | | Finance and Administration | 48 | 27.1 | | IT and R&D | 4 | 2.3 | | Total | 177 | 100.0 | - During the reporting period, the Group's total staff costs were approximately **RMB17.2 million**, offering competitive salaries, performance bonuses, housing allowances, team-building activities, and training opportunities[26](index=26&type=chunk) - The company has adopted a post-IPO share option scheme and a share award scheme to incentivize and reward eligible individuals for their contributions to the Group[27](index=27&type=chunk)[28](index=28&type=chunk) [Liquidity, Financial and Capital Resources](index=11&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) The company maintains a prudent financial management approach, with a slight increase in cash and cash equivalents, and no significant contingent liabilities, capital commitments, asset pledges, or interest-bearing bank borrowings - As of June 30, 2025, cash and cash equivalents increased by approximately **RMB3.2 million** from approximately **RMB395.1 million** as of December 31, 2024, to approximately **RMB398.3 million**[30](index=30&type=chunk) - As of June 30, 2025, the Group had no significant contingent liabilities, capital commitments, or asset pledges, nor any interest-bearing bank borrowings[29](index=29&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [Major Customers and Suppliers](index=12&type=section&id=Major%20Customers%20and%20Suppliers) The company has a high dependency on its top five customers and suppliers, with the contribution ratios of both the largest customer and supplier increasing - For the six months ended June 30, 2025, the company's top five customers accounted for **72.8%** of revenue, with the largest customer accounting for **53.3%**[34](index=34&type=chunk) - For the six months ended June 30, 2025, the company's top five suppliers accounted for **93.8%** of total cost of sales, with the largest supplier accounting for **36.6%**[35](index=35&type=chunk) [Cash Flow](index=12&type=section&id=Cash%20Flow) During the reporting period, net cash outflow from operating activities decreased, and net cash inflow from financing activities increased, leading to a net increase in cash and cash equivalents Summary of Condensed Consolidated Cash Flow Statement | Cash Flow Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Flows Used in Operating Activities | (6,287) | (19,217) | | Net Cash Flows (Used in)/Generated from Investing Activities | (45) | 45,658 | | Net Cash Flows Generated from/(Used in) Financing Activities | 11,667 | (1,219) | | Net Increase in Cash and Cash Equivalents | 5,335 | 25,222 | | Cash and Cash Equivalents at Beginning of Period | 395,103 | 358,466 | | Cash and Cash Equivalents at End of Period | 398,326 | 384,560 | [Indebtedness](index=13&type=section&id=Indebtedness) As of June 30, 2025, the company had no bank financing, outstanding debt securities, or other borrowed capital, with a slight increase in total lease liabilities - As of June 30, 2025, the company had not applied for or obtained any bank financing, nor did it have any outstanding debt securities, mortgages, pledges, debentures, or other borrowed capital; total lease liabilities were approximately **RMB1.9 million**[37](index=37&type=chunk) [Certain Financial Ratios](index=13&type=section&id=Certain%20Financial%20Ratios) During the reporting period, the company's return on equity and return on total assets turned positive, while current ratio and gross profit margin showed slight changes Certain Financial Ratios | Financial Ratio | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Return on Equity | 1.7% | -2.5% | | Return on Total Assets | 0.5% | -0.7% | | Current Ratio | 1.4 | 1.3 | | Gearing Ratio | — | — | | Gross Profit Margin | 14.8% | 17.7% | [Financial and Market Risks](index=14&type=section&id=Financial%20and%20Market%20Risks) The company faces foreign currency, credit, and liquidity risks, employing prudent risk management policies, without using derivative financial instruments to hedge foreign currency risk, and assessing and monitoring credit risk - The company faces various financial and market risks, including foreign currency risk (RMB, USD, and other currencies), credit risk, and liquidity risk, and has established financial management policies and practices to manage these risks[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [Interim Condensed Consolidated Financial Statements](index=15&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the interim condensed consolidated statement of profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=15&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company achieved revenue of **RMB154,376 thousand** and a profit for the period of **RMB1,787 thousand**, a significant improvement compared to the loss in the prior year Summary of Interim Condensed Consolidated Statement of Profit or Loss | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 154,376 | 130,666 | | Cost of Sales | (131,501) | (109,831) | | Gross Profit | 22,875 | 20,835 | | Other Income and Gains | 7,622 | 3,688 | | Selling and Distribution Expenses | (5,148) | (4,573) | | Administrative Expenses | (20,980) | (22,708) | | Net Impairment Loss on Financial Assets | (838) | (1,122) | | Other Expenses | (1,121) | (1,914) | | Finance Costs | (38) | (39) | | Profit/(Loss) Before Tax | 2,372 | (6,136) | | Income Tax (Expense)/Credit | (585) | 1,496 | | Profit/(Loss) for the Period | 1,787 | (4,640) | - Basic and diluted earnings per share attributable to owners of the parent were **RMB0.2 cents** (2024: loss of **RMB0.6 cents**)[43](index=43&type=chunk) [Interim Condensed Consolidated Statement of Comprehensive Income](index=16&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) During the reporting period, the company's total comprehensive loss was **RMB285 thousand**, primarily impacted by exchange differences on overseas operations Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 1,787 | (4,640) | | Exchange Differences on Translation of Overseas Operations | (2,641) | 22 | | Exchange Differences on Translation of the Company's Financial Statements | 569 | 814 | | Other Comprehensive (Loss)/Income for the Period, Net of Tax | (2,072) | 836 | | Total Comprehensive Loss for the Period | (285) | (3,804) | [Interim Condensed Consolidated Statement of Financial Position](index=17&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets both increased, with a rise in net current assets, reflecting a stable financial position Summary of Interim Condensed Consolidated Statement of Financial Position | Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 195 | 189 | | Right-of-use Assets | 1,794 | 1,564 | | Deferred Tax Assets | 7,811 | 6,805 | | Financial Assets at Fair Value Through Profit or Loss | 7,916 | 8,661 | | **Total Non-current Assets** | **17,716** | **17,219** | | **Current Assets** | | | | Trade Receivables | 253,592 | 227,049 | | Prepayments, Other Receivables and Other Assets | 7,574 | 13,326 | | Cash and Cash Equivalents | 398,326 | 395,103 | | Financial Assets at Fair Value Through Profit or Loss | 57,209 | 56,621 | | **Total Current Assets** | **716,701** | **692,099** | | **Current Liabilities** | | | | Trade Payables | 432,316 | 428,409 | | Other Payables and Accruals | 91,630 | 81,261 | | Tax Payable | 1,566 | 3,108 | | Lease Liabilities | 1,362 | 1,242 | | **Total Current Liabilities** | **526,874** | **514,020** | | **Net Current Assets** | **189,827** | **178,079** | | **Total Assets Less Current Liabilities** | **207,543** | **195,298** | | **Non-current Liabilities** | | | | Lease Liabilities | 561 | 169 | | **Total Non-current Liabilities** | **561** | **169** | | **Net Assets** | **206,982** | **195,129** | | **Total Equity** | **206,982** | **195,129** | [Notes to the Interim Condensed Consolidated Financial Information](index=19&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes on company information, accounting policies, segment data, revenue, profit before tax, income tax, dividends, EPS, receivables, payables, and post-reporting events [Company Information](index=19&type=section&id=Company%20Information) The company was incorporated in the Cayman Islands as an investment holding company, with its subsidiaries engaged in providing online advertising services in China and internationally - The company was incorporated as a limited liability company in the Cayman Islands on February 1, 2019, primarily engaged in providing online advertising services[48](index=48&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=19&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim financial information is prepared in accordance with HKAS 34, with accounting policies consistent with the prior year, except for the initial adoption of HKAS 21 amendments 'Lack of Exchangeability', which had no material impact on the Group - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting, with accounting policies consistent with those adopted for the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[49](index=49&type=chunk)[50](index=50&type=chunk) - The initial adoption of HKAS 21 amendments 'Lack of Exchangeability' had no impact on the interim condensed consolidated financial information, as all the Group's transaction currencies are exchangeable[51](index=51&type=chunk) [Segment Information](index=20&type=section&id=Segment%20Information) The company operates in a single operating segment, providing online advertising services; geographically, Hong Kong market contribution significantly increased, while mainland China market revenue decreased - The Group did not present segment information during the period, with revenue and reported results derived from a single operating segment, which is the provision of online advertising services[52](index=52&type=chunk) Revenue by Country/Jurisdiction of Registration of External Customers | Country/Jurisdiction | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Hong Kong | 87,653 | 42,307 | | Mainland China | 30,876 | 63,035 | | Singapore | 16,377 | 9,559 | | Indonesia | 12,980 | 2,572 | | Other Countries | 6,490 | 13,193 | | Total | 154,376 | 130,666 | Information About Major Customers | Customer | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Customer A | 82,298 | 32,103 | | Customer B | 10,490 | Not Applicable* | | * Less than 10% of the Group's total revenue. | | | [Revenue, Other Income and Gains](index=21&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) Revenue primarily derives from customer contracts, including designated action revenue and agreed rebates; other income and gains mainly consist of bank interest and foreign exchange gains Analysis of Revenue, Other Income and Gains | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from Customer Contracts - Designated Action Revenue | 142,284 | 115,687 | | Revenue from Customer Contracts - Agreed Rebates | 12,092 | 14,979 | | Total Revenue | 154,376 | 130,666 | | Other Income and Gains - Others | 7,622 | 3,688 | - Revenue from online advertising services is recognized at a point in time[56](index=56&type=chunk) [Profit/(Loss) Before Tax](index=22&type=section&id=Profit%2F%28Loss%29%20Before%20Tax) Profit before tax turned from a loss to a profit compared to the prior year, mainly influenced by cost of services, bank interest income, exchange differences, and employee benefit expenses Profit/(Loss) Before Tax is Arrived at After Charging/(Crediting) the Following | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Services Provided | 128,014 | 107,328 | | Bank Interest Income | (3,011) | (2,456) | | Depreciation of Property, Plant and Equipment | 82 | 120 | | Depreciation of Right-of-use Assets | 715 | 1,199 | | Impairment Provision for Trade Receivables | 838 | 1,122 | | Lease Payments Not Included in the Measurement of Lease Liabilities | 53 | 1,158 | | Auditor's Remuneration | 700 | 700 | | Employee Benefit Expense (Including Directors' Emoluments) | 17,166 | 17,415 | | Net Exchange Differences | (2,729) | 1,848 | | Net Fair Value Loss/(Gain) on Financial Assets at Fair Value Through Profit or Loss | 157 | (290) | [Income Tax](index=22&type=section&id=Income%20Tax) The company pays income tax at applicable rates in different jurisdictions, with an income tax expense of **RMB585 thousand** during the reporting period - The company pays income tax at a rate of **16.5%** (or **8.25%**) in Hong Kong and **25%** in Mainland China, while companies registered in the Cayman Islands are exempt from income tax[59](index=59&type=chunk)[60](index=60&type=chunk) Income Tax Breakdown | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current — Hong Kong | 1,077 | 259 | | Deferred | (492) | (1,755) | | Total | 585 | (1,496) | [Dividends](index=23&type=section&id=Dividends) No dividends were paid or declared by the company during the reporting period - The company did not pay or declare any dividends during the period[62](index=62&type=chunk) [Earnings/(Loss) Per Share Attributable to Owners of the Parent](index=23&type=section&id=Earnings%2F%28Loss%29%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) Basic and diluted earnings per share were **RMB0.2 cents**, compared to a loss of **RMB0.6 cents** in the prior period, reflecting improved profitability - Basic and diluted earnings per share were **RMB0.2 cents** (2024: loss of **RMB0.6 cents**), calculated based on the profit/(loss) for the period attributable to owners of the parent and the weighted average number of ordinary shares outstanding[63](index=63&type=chunk) Calculation of Basic and Diluted Earnings Per Share is Based On | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the Period Attributable to Owners of the Parent Used for Calculating Basic and Diluted Earnings/(Loss) Per Share | 1,787 | (4,397) | | Weighted Average Number of Ordinary Shares Outstanding During the Period Used for Calculating Basic and Diluted Earnings Per Share | 881,950,753 | 741,965,000 | [Trade Receivables](index=24&type=section&id=Trade%20Receivables) Total trade receivables increased, primarily concentrated in aging periods of within 1 month and 1 to 3 months Aging Analysis of Trade Receivables | Aging | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 187,390 | 170,182 | | 1 to 3 months | 65,754 | 54,660 | | 3 to 12 months | 448 | 2,207 | | Total | 253,592 | 227,049 | [Trade Payables](index=24&type=section&id=Trade%20Payables) Total trade payables slightly increased, primarily settled within 1 year Aging Analysis of Trade Payables | Aging | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 432,316 | 428,409 | - Trade payables are non-interest-bearing and generally settled within **60 days**[69](index=69&type=chunk) [Events After the Reporting Period](index=24&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after the reporting period, except as disclosed in this announcement - There were no significant events after the reporting period[70](index=70&type=chunk) [Future Outlook](index=25&type=section&id=Future%20Outlook) The company plans to focus on data-driven transformation, cross-industry collaboration, international market expansion, AI technology integration, and sustainable development - The company will continue to strengthen data collection, analysis, and application, accelerating a comprehensive transformation from experience-driven to data-driven decision-making, maximizing advertising effectiveness through AdTensor's real-time data analysis tools[72](index=72&type=chunk) - The company will place greater emphasis on cross-industry collaboration and ecosystem building, actively establishing close partnerships with content creators, technology providers, and media platforms to jointly explore new marketing models and growth points[73](index=73&type=chunk) - The company will actively expand into international markets, strengthen its global presence, and deeply research cultural, legal, and consumer habit differences across various countries and regions to formulate marketing strategies that meet local market demands[74](index=74&type=chunk) - AI technology will be the company's core competitiveness; it will strengthen the implementation of AI technology, deeply cultivate areas such as large video models, digital human technology, and virtual shooting, and actively explore the commercialization and business model innovation of AI technology[75](index=75&type=chunk) - The company will undertake sustainable development and social responsibility, focusing on promoting green marketing and environmentally friendly advertising, and actively participating in social welfare activities[76](index=76&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers listed securities transactions, corporate governance code compliance, directors' securities trading, audit committee review, use of placing proceeds, subsequent events, interim dividends, and report publication [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor did they hold any treasury shares - During the reporting period, the company did not redeem any of its listed securities, nor did the company or any of its subsidiaries purchase or sell such securities, and as of June 30, 2025, no treasury shares were held as required by the Listing Rules[77](index=77&type=chunk)[78](index=78&type=chunk) [Corporate Governance Code](index=27&type=section&id=Corporate%20Governance%20Code) The company has adopted the Corporate Governance Code and complies with all mandatory disclosure requirements, though the roles of Chairman and Chief Executive Officer are combined, which the Board believes contributes to efficient decision-making - The company has adopted the Corporate Governance Code and complies with all mandatory disclosure requirements, except that the roles of Chairman and Chief Executive Officer are combined and held by Ms. Chang Su Fang, which the Board believes provides strong and consistent leadership to the company[79](index=79&type=chunk) [Standard Code for Securities Transactions by Directors](index=27&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Standard Code, and all directors confirmed their compliance with it during the reporting period - The company has adopted the Standard Code, and all directors have confirmed their compliance with the Standard Code during the reporting period[80](index=80&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee has reviewed the interim financial statements and deemed them compliant with applicable Listing Rules; the financial information has been reviewed by Ernst & Young - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the reporting period and considers them to have been prepared in compliance with the applicable Listing Rules; the financial information has been reviewed by the company's auditor, Ernst & Young[81](index=81&type=chunk)[82](index=82&type=chunk) [Use of Proceeds from Placing of New Shares](index=28&type=section&id=Use%20of%20Proceeds%20from%20Placing%20of%20New%20Shares) The company disclosed the use of proceeds from two placings of new shares in 2023 and 2025; the 2023 placing proceeds were for strengthening AI capabilities and general working capital, with some uses deferred; the 2025 placing proceeds were partially used for working capital [2023 Placing](index=28&type=section&id=2023%20Placing) Details of the 2023 placing proceeds, intended for AI capabilities and general working capital, with a revised timeline for remaining funds - The net proceeds from the 2023 Placing were approximately **HKD12,818,520**, which the Directors intend to use for strengthening and improving the Group's AdTensor platform services and general working capital[83](index=83&type=chunk) Breakdown of Use of Net Proceeds from 2023 Placing | Planned Use | Approximate Percentage of Total Net Proceeds (%) | Actual Net Proceeds (HKD millions) | Unutilized Net Proceeds as of January 1, 2025 (HKD millions) | Actual Use of Net Proceeds for the Six Months Ended June 30, 2025 (HKD millions) | Unutilized Net Proceeds as of June 30, 2025 (HKD millions) | Expected Timeline for Utilizing Remaining Net Proceeds from 2023 Placing | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strengthening big data, machine learning, and AI capabilities; and improving the Group's AdTensor platform services | 70 | 9.0 | 4.1 | 3.4 | 0.7 | Before December 31, 2025 | | Supplementing the Group's operations and general working capital | 30 | 3.8 | — | — | — | | - Due to the rapid development of AI technology, the expected timeline for utilizing the remaining balance of net proceeds from the 2023 Placing has been deferred from before December 31, 2024, to before December 31, 2025[84](index=84&type=chunk) [2025 Placing](index=29&type=section&id=2025%20Placing) Details of the 2025 placing proceeds, intended for AI capabilities and general working capital, with partial utilization for working capital - The net proceeds from the 2025 Placing were approximately **HKD13,121,540**, which the Directors intend to use for strengthening and improving the Group's AdTensor platform services and general working capital[85](index=85&type=chunk) Breakdown of Use of Net Proceeds from 2025 Placing | Planned Use | Approximate Percentage of Total Net Proceeds (%) | Planned Use of Net Proceeds (HKD millions) | Unutilized Net Proceeds as of January 1, 2025 (HKD millions) | Actual Use of Proceeds for the Six Months Ended June 30, 2025 (HKD millions) | Unutilized Net Proceeds as of June 30, 2025 (HKD millions) | Expected Timeline for Utilizing Remaining Net Proceeds from 2025 Placing | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strengthening big data, machine learning, and AI capabilities; and improving the Group's AdTensor platform services | 70 | 9.2 | 9.2 | — | 9.2 | Before December 31, 2026 | | Supplementing the Group's operations and general working capital | 30 | 3.9 | 3.9 | 3.9 | — | | - During the reporting period, the Group has utilized the unutilized proceeds in accordance with the proposed uses stated in the company's announcement dated January 10, 2025[86](index=86&type=chunk) [Subsequent Events](index=30&type=section&id=Subsequent%20Events) No other significant subsequent events occurred after the reporting period, except as disclosed in this announcement - Other than as disclosed in this announcement, the Directors are not aware of any other significant subsequent events concerning the Group's business or financial performance from June 30, 2025, up to the date of this announcement[87](index=87&type=chunk) [Interim Dividends](index=30&type=section&id=Interim%20Dividends) The Board has resolved not to declare any interim dividend - The Board has resolved not to declare any interim dividend for the reporting period (prior period: nil)[88](index=88&type=chunk) [Publication of 2025 Interim Condensed Consolidated Results and Interim Report](index=30&type=section&id=Publication%20of%202025%20Interim%20Condensed%20Consolidated%20Results%20and%20Interim%20Report) This announcement has been published on the Stock Exchange and the company's website, and the interim report will be dispatched to shareholders in due course - This announcement is published on the Stock Exchange's website and the company's website; the company's interim report for the reporting period will be dispatched and sent to shareholders in due course, and published on the respective websites of the Stock Exchange and the company[89](index=89&type=chunk) [Acknowledgement](index=31&type=section&id=Acknowledgement) The Board sincerely thanks the Group's shareholders, management team, employees, business partners, and customers for their support and contributions to the Group - The Board hereby expresses its sincere gratitude to the Group's shareholders, management team, employees, business partners, and customers for their support and contributions to the Group[90](index=90&type=chunk) [Definitions](index=31&type=section&id=Definitions) Provides definitions for key terms and abbreviations used in the report - The report includes definitions of key terms and abbreviations such as 'the Company', '2023 Placing', 'AdTensor', 'AI', 'CPA', 'CPC', and 'CPM'[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)

[Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's net profit for the six months ended June 30, 2025, significantly decreased by 42.80% to 14,764 thousand HKD, with basic earnings per share falling to 0.65 HK cents, driven by reduced net other financial income and increased expenses Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Service income | 22,417 | 24,057 | (1,640) | -6.82% | | Interest income | 872 | 775 | 97 | 12.52% | | Total income | 23,289 | 24,832 | (1,543) | -6.21% | | Net other financial income | 10,744 | 18,235 | (7,491) | -41.08% | | Employee benefit expenses | (9,091) | (8,293) | (798) | 9.62% | | Administrative and other expenses | (9,029) | (7,867) | (1,162) | 14.77% | | Profit before tax | 15,988 | 26,941 | (10,953) | -40.65% | | Profit for the period attributable to owners of the Company | 14,764 | 25,813 | (11,049) | -42.80% | | Basic earnings per share (HK cents) | 0.65 | 1.24 | (0.59) | -47.58% | - Total comprehensive income attributable to owners of the Company for the period decreased from **25,813 thousand HKD** in 2024 to **16,427 thousand HKD** in 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets grew to 938,463 thousand HKD, with net current assets at 258,927 thousand HKD and net assets at 507,757 thousand HKD, while current liabilities rose significantly due to increased trade and other payables Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 259,681 | 260,359 | (678) | -0.26% | | Current assets | 678,782 | 496,794 | 181,988 | 36.63% | | Current liabilities | 419,855 | 246,471 | 173,384 | 70.35% | | Net current assets | 258,927 | 250,323 | 8,604 | 3.44% | | Total assets less current liabilities | 518,608 | 510,682 | 7,926 | 1.55% | | Non-current liabilities | 10,851 | 9,326 | 1,525 | 16.35% | | Net assets | 507,757 | 501,356 | 6,401 | 1.28% | | Total equity | 507,757 | 501,356 | 6,401 | 1.28% | - Client trust bank balances significantly increased by **76.01%** from **230,741 thousand HKD** as of December 31, 2024, to **406,127 thousand HKD** as of June 30, 2025[6](index=6&type=chunk) - Trade and other payables and accrued expenses significantly increased by **69.52%** from **242,248 thousand HKD** as of December 31, 2024, to **410,661 thousand HKD** as of June 30, 2025[6](index=6&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation and Significant Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Significant%20Accounting%20Policies) These interim condensed consolidated financial statements adhere to HKEX Listing Rules and HKAS 34, incorporating revised HKFRS effective January 1, 2025, without material impact on the Group's financial position - Financial statements are prepared in compliance with the HKEX Listing Rules and Hong Kong Accounting Standard 34[8](index=8&type=chunk) - The adoption of revised Hong Kong Financial Reporting Standards, effective January 1, 2025, has no material impact on the Group's interim condensed consolidated financial statements[10](index=10&type=chunk)[11](index=11&type=chunk) [Revenue Disaggregation](index=6&type=section&id=Revenue%20Disaggregation) The Group's total revenue for the 2025 interim period decreased by 6.21% to 23,289 thousand HKD, with growth in asset management and securities services offset by significant declines in advisory and referral fees Revenue Disaggregation Details | Service Category | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Advisory and related services | 7,163 | 11,034 | (3,871) | -35.08% | | Asset management services | 9,840 | 7,722 | 2,118 | 27.43% | | Securities and related services | 4,999 | 1,119 | 3,880 | 346.74% | | Referral fees | – | 3,746 | (3,746) | -100.00% | | Miscellaneous income | 415 | 436 | (21) | -4.82% | | **Total service income** | **22,417** | **24,057** | **(1,640)** | **-6.82%** | | Loan interest income | 872 | 775 | 97 | 12.52% | | **Total revenue** | **23,289** | **24,832** | **(1,543)** | **-6.21%** | - Regarding the timing of service revenue recognition, revenue transferred over time increased from **13,712 thousand HKD** in 2024 to **17,350 thousand HKD** in 2025, while revenue recognized at a point in time decreased from **10,345 thousand HKD** to **5,067 thousand HKD**[14](index=14&type=chunk) [Transaction Price Allocated to Remaining Performance Obligations](index=6&type=section&id=Transaction%20Price%20Allocated%20to%20Remaining%20Performance%20Obligations) As of June 30, 2025, the Group's remaining performance obligations totaled 5,977 thousand HKD, a 57.62% decrease from December 31, 2024, with most revenue expected within 6-12 months Timing of Remaining Performance Obligations | Expected Fulfillment Period | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Year ending December 31, 2025 | 5,410 | 14,102 | (8,692) | -61.63% | | Year ending December 31, 2026 | 567 | – | 567 | N/A | | **Total** | **5,977** | **14,102** | **(8,125)** | **-57.62%** | - The amount of remaining performance obligations excludes a significant conditional advisory transaction due to uncertainty in its amount and the expectation that it will not be resolved in the short term[16](index=16&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group operates four segments: corporate finance, asset management, securities, and money lending; in 2025, corporate finance and investment segments saw significant declines in revenue and profit, while asset management and securities segments experienced revenue growth Segment External Revenue and Profit Before Tax | Segment | 2025 External Revenue (thousand HKD) | 2024 External Revenue (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate finance services, investments and others | 7,163 | 11,034 | (3,871) | -35.08% | | Asset management services | 10,255 | 8,158 | 2,097 | 25.70% | | Securities and related services | 4,999 | 4,865 | 134 | 2.75% | | Money lending business | 872 | 775 | 97 | 12.52% | | **Total** | **23,289** | **24,832** | **(1,543)** | **-6.21%** | | Segment | 2025 Profit Before Tax (thousand HKD) | 2024 Profit Before Tax (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate finance services, investments and others | 8,699 | 22,209 | (13,510) | -60.83% | | Asset management services | 5,919 | 4,420 | 1,499 | 33.91% | | Securities and related services | 1,109 | 518 | 591 | 114.09% | | Money lending business | 261 | (206) | 467 | N/A | | **Total** | **15,988** | **26,941** | **(10,953)** | **-40.65%** | Segment Assets and Liabilities | Segment | June 30, 2025 Total Assets (thousand HKD) | December 31, 2024 Total Assets (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate finance services, investments and others | 439,664 | 439,936 | (272) | -0.06% | | Asset management services | 43,453 | 43,531 | (78) | -0.18% | | Securities and related services | 426,215 | 244,335 | 181,880 | 74.44% | | Money lending business | 29,131 | 29,351 | (220) | -0.75% | | **Total** | **938,463** | **757,153** | **181,310** | **23.95%** | | Segment | June 30, 2025 Total Liabilities (thousand HKD) | December 31, 2024 Total Liabilities (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate finance services, investments and others | 14,010 | 12,460 | 1,550 | 12.44% | | Asset management services | 1,095 | 243 | 852 | 350.62% | | Securities and related services | 411,666 | 231,118 | 180,548 | 78.12% | | Money lending business | 117 | 318 | (201) | -63.21% | | **Total** | **426,888** | **244,139** | **182,749** | **74.86%** | [Revenue from Major Customers](index=10&type=section&id=Revenue%20from%20Major%20Customers) In 2025, Customer A's revenue grew to 9,018 thousand HKD from asset management and securities services, while major customers B, C, and D from 2024 generated no revenue Revenue from Major Customers Details | Customer | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Customer A | 9,018 | 8,064 | 954 | 11.83% | | Customer B | – | 5,000 | (5,000) | -100.00% | | Customer C | – | 3,746 | (3,746) | -100.00% | | Customer D | – | 3,000 | (3,000) | -100.00% | - Revenue from Customer A is attributable to asset management services and securities and related services[20](index=20&type=chunk) - Revenue from Customers B and D in 2024 was attributable to corporate finance services, investments, and other, while revenue from Customer C was attributable to securities and related services[21](index=21&type=chunk)[22](index=22&type=chunk) [Loan Concentration to Major Customers](index=10&type=section&id=Loan%20Concentration%20to%20Major%20Customers) The Group's credit risk concentration increased, with the largest customer and top five customers' share of mortgage and term loans in the money lending segment rising - The proportion of mortgage and term loans from the largest customer increased from **52.3%** as of December 31, 2024, to **54.7%** as of June 30, 2025[23](index=23&type=chunk) - The proportion of mortgage and term loans from the top five customers increased from **81.9%** as of December 31, 2024, to **83.5%** as of June 30, 2025[23](index=23&type=chunk) [Geographical Information](index=10&type=section&id=Geographical%20Information) The Group's operations and non-current assets, excluding mortgage loans and FVTPL financial assets, are primarily concentrated in Hong Kong - The Group's business operations are primarily conducted in Hong Kong[24](index=24&type=chunk) - All of the Group's non-current assets (excluding mortgage loans and financial assets at fair value through profit or loss) are located in Hong Kong[24](index=24&type=chunk) [Items Deducted From / (Credited to) Profit Before Tax](index=11&type=section&id=Items%20Deducted%20From%20%2F%20%28Credited%20to%29%20Profit%20Before%20Tax) In 2025, intangible asset amortization was stable, while depreciation and impairment reversals decreased, and employee benefits and lease liability interest expenses increased Items Deducted From / (Credited to) Profit Before Tax | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Amortisation of intangible assets | 1,726 | 1,726 | 0 | 0.00% | | Depreciation of owned property, plant and equipment | 30 | 50 | (20) | -40.00% | | Depreciation of right-of-use assets | 1,447 | 1,551 | (104) | -6.71% | | Employee benefit expenses | 9,091 | 8,293 | 798 | 9.62% | | Interest on lease liabilities | 104 | 67 | 37 | 55.22% | | Reversal of impairment losses on financial assets | (179) | (100) | (79) | 79.00% | [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) In 2025, the Group's income tax expense increased by 8.51% to 1,224 thousand HKD, mainly due to higher Hong Kong profits tax, which applies a 16.5% rate with an 8.25% two-tiered rate for some profits Income Tax Expense Details | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong profits tax | (1,509) | (1,413) | (96) | 6.79% | | Deferred tax | 285 | 285 | 0 | 0.00% | | **Income tax expense** | **(1,224)** | **(1,128)** | **(96)** | **8.51%** | - Hong Kong profits tax is provided at an estimated assessable profit rate of **16.5%**, with one subsidiary's first **2,000,000 HKD** of assessable profits taxed at **8.25%**[26](index=26&type=chunk) [Earnings Per Share](index=12&type=section&id=Earnings%20Per%20Share) In 2025, basic and diluted EPS attributable to owners decreased by 47.58% to 0.65 HK cents, driven by lower profit and an increased weighted average number of ordinary shares Earnings Per Share Calculation Data | Indicator | 2025 (thousand HKD/share) | 2024 (thousand HKD/share) | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 14,764 | 25,813 | (11,049) | -42.80% | | Weighted average number of ordinary shares outstanding | 2,278,660,380 | 2,073,580,946 | 205,079,434 | 9.90% | | Basic and diluted earnings per share (HK cents) | 0.65 | 1.24 | (0.59) | -47.58% | - For the six months ended June 30, 2025, and 2024, there were no outstanding potential ordinary shares, thus diluted earnings per share were the same as basic earnings per share[28](index=28&type=chunk) [Dividends](index=12&type=section&id=Dividends) The Board resolved not to declare a 2025 interim dividend; however, 2024 final and special dividends totaling 10,026 thousand HKD were paid during the 2025 interim period - The Board resolved not to declare an interim dividend for **2025** (2024: nil)[29](index=29&type=chunk) - A final dividend of **0.28 HK cents** per share and a special dividend of **0.16 HK cents** per share for **2024**, totaling **10,026 thousand HKD**, were paid during the **2025** interim period[29](index=29&type=chunk) [Goodwill](index=12&type=section&id=Goodwill) As of June 30, 2025, the Group's goodwill carrying amount remained stable at 108,788 thousand HKD, unchanged from December 31, 2024 Goodwill Carrying Amount | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost | 302,965 | 302,965 | 0 | 0.00% | | Accumulated impairment | 194,177 | 194,177 | 0 | 0.00% | | **Carrying amount** | **108,788** | **108,788** | **0** | **0.00%** | [Intangible Assets](index=13&type=section&id=Intangible%20Assets) As of June 30, 2025, the Group's intangible assets decreased by 2.92% to 57,359 thousand HKD, mainly due to trademark name amortization Intangible Assets Carrying Amount Details | Intangible Asset Category | June 30, 2025 Carrying Amount (thousand HKD) | December 31, 2024 Carrying Amount (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Investment management agreements | – | – | 0 | N/A | | Inventories | – | – | 0 | N/A | | Trademark names | 48,619 | 50,345 | (1,726) | -3.43% | | SFC licenses | 3,740 | 3,740 | 0 | 0.00% | | Club memberships | 5,000 | 5,000 | 0 | 0.00% | | **Total** | **57,359** | **59,085** | **(1,726)** | **-2.92%** | - In the **2025** interim period, intangible asset amortization was **1,726 thousand HKD**, primarily from trademark names[31](index=31&type=chunk) [Mortgage Loans](index=14&type=section&id=Mortgage%20Loans) As of June 30, 2025, total secured mortgage loans decreased by 9.64% to 7,459 thousand HKD, with all loans current and no loss allowance recognized Mortgage Loans Details | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total secured mortgage loans | 7,459 | 8,255 | (796) | -9.64% | | Non-current assets | 5,923 | 6,691 | (768) | -11.48% | | Current assets | 1,536 | 1,564 | (28) | -1.79% | - As of June 30, 2025, and December 31, 2024, there were no overdue mortgage loans[32](index=32&type=chunk) - The Group has not recognized any loss allowance for mortgage loans secured by collateral, as the realizable value of the collateral is sufficient to cover the loan amounts[32](index=32&type=chunk) [Term Loans](index=14&type=section&id=Term%20Loans) As of June 30, 2025, net term loans increased by 4.24% to 9,024 thousand HKD, driven by higher gross term loans and a corresponding rise in impairment allowance Term Loans Details | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross term loans | 9,554 | 9,047 | 507 | 5.60% | | Less: Impairment allowance | (530) | (390) | (140) | 35.90% | | **Net term loans** | **9,024** | **8,657** | **367** | **4.24%** | [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables surged by 109.88% to 7,245 thousand HKD, primarily driven by significant growth in trade receivables Trade and Other Receivables Details | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade receivables | 5,601 | 1,452 | 4,149 | 285.74% | | Other receivables | 482 | 260 | 222 | 85.38% | | Prepayments | 274 | 792 | (518) | -65.40% | | Rental and utilities deposits | 888 | 948 | (60) | -6.33% | | **Total** | **7,245** | **3,452** | **3,793** | **109.88%** | Ageing Analysis of Trade Receivables | Ageing Analysis (Trade Receivables) | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Within 30 days | 5,351 | 1,452 | 3,899 | 268.52% | | Over 30 days but within 60 days | 250 | – | 250 | N/A | | **Total** | **5,601** | **1,452** | **4,149** | **285.74%** | [Client Trust Bank Balances](index=16&type=section&id=Client%20Trust%20Bank%20Balances) Client monies are held in segregated bank accounts, classified as current assets and corresponding trade payables, and are regulated by the Securities and Futures Ordinance - Client monies are held in segregated bank accounts and classified as client trust bank balances under current assets[36](index=36&type=chunk) - The Group is responsible for any loss or misappropriation of client monies[36](index=36&type=chunk) - Balances in segregated bank accounts are subject to and regulated by the Securities and Futures (Client Money) Rules under the Securities and Futures Ordinance[36](index=36&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables surged by 69.52% to 410,661 thousand HKD, mainly driven by a significant increase in client trade payables Trade and Other Payables Details | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Client trade payables | 408,651 | 228,498 | 180,153 | 78.85% | | Hong Kong Securities Clearing Company Limited | – | 2,228 | (2,228) | -100.00% | | Other payables and accrued expenses | 2,010 | 11,522 | (9,512) | -82.55% | | **Total** | **410,661** | **242,248** | **168,413** | **69.52%** | - As of June 30, 2025, approximately **406,127 thousand HKD** (December 31, 2024: approximately **230,741 thousand HKD**) of trade payables represent amounts payable to clients for segregated bank account balances received and held on behalf of clients in the course of conducting regulated business[37](index=37&type=chunk) [Business Review](index=17&type=section&id=Business%20Review) [Corporate Finance Advisory](index=17&type=section&id=Corporate%20Finance%20Advisory) Yu Ming provides corporate finance advisory, placing, and underwriting services; in 2025, revenue from these services decreased to approximately 7,200 thousand HKD - Yu Ming provides corporate finance advisory services, including financial advisory, compliance advisory, placing agent, and underwriting services[38](index=38&type=chunk)[40](index=40&type=chunk)[47](index=47&type=chunk) - In the **2025** interim period, revenue from corporate finance advisory and related services was approximately **7,200 thousand HKD**, a decrease from **11,000 thousand HKD** in 2024[41](index=41&type=chunk) [Asset Management](index=18&type=section&id=Asset%20Management) Yu Ming provides asset management services to New Work Investment Limited and other funds, with revenue growing to approximately 10,200 thousand HKD in 2025 - Yu Ming provides asset management services to New Work Investment Limited and other investment funds[42](index=42&type=chunk) - In the **2025** interim period, revenue from asset management services was approximately **10,200 thousand HKD**, an increase from **8,100 thousand HKD** in 2024[42](index=42&type=chunk) [Investments](index=18&type=section&id=Investments) YMHD Fund primarily invests in securities, generating approximately 6,600 thousand HKD in net other financial income in 2025, a significant increase from 2024 - YMHD Fund primarily engages in securities investments[43](index=43&type=chunk) - In the **2025** interim period, net other financial income from securities investments by YMHD Fund was approximately **6,600 thousand HKD**, an increase from **2,300 thousand HKD** in 2024[43](index=43&type=chunk) [Securities Brokerage](index=18&type=section&id=Securities%20Brokerage) Man Kee Securities, engaged in brokerage, placing, and investments, maintained stable operations with slight profit and revenue growth to approximately 5,000 thousand HKD in 2025 - Man Kee Securities primarily engages in securities brokerage, securities placing, and securities investments[44](index=44&type=chunk) - Man Kee Securities maintained stable operations during the interim period, despite a slight profit[45](index=45&type=chunk) - In the **2025** interim period, revenue from securities and related services was approximately **5,000 thousand HKD**, a slight increase from **4,900 thousand HKD** in 2024[46](index=46&type=chunk) [Money Lending Business](index=19&type=section&id=Money%20Lending%20Business) Man Kee Finance conducts money lending in Hong Kong, offering various loans; it maintains a cautious approach with enhanced credit risk management, and revenue slightly increased to approximately 900 thousand HKD in 2025 - Man Kee Finance primarily conducts money lending business in Hong Kong, providing unsecured loans (term loans and personal loans) and secured loans (property mortgages and share mortgages)[48](index=48&type=chunk) - Given the unstable economic environment, Man Kee Finance maintains a cautious approach, strengthening credit risk management and adjusting interest rates and loan-to-value ratios as appropriate[48](index=48&type=chunk) - In the **2025** interim period, revenue from money lending and related businesses was approximately **900 thousand HKD**, an increase from **800 thousand HKD** in 2024[49](index=49&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) [Overall Results](index=19&type=section&id=Overall%20Results) In 2025, the Group's net profit significantly decreased by 11,000 thousand HKD to 14,800 thousand HKD, with basic EPS falling to 0.65 HK cents, mainly due to reduced corporate finance and fixed income investment income - In the **2025** interim period, the Group recorded a net profit of approximately **14,800 thousand HKD**, a decrease of approximately **11,000 thousand HKD** from 2024[51](index=51&type=chunk) - The decrease in profit was primarily due to reduced corporate finance revenue and investment income from fixed income investments[51](index=51&type=chunk) - Basic earnings per share were **0.65 HK cents** (2024: **1.24 HK cents**)[52](index=52&type=chunk) [Revenue and Financial Resources](index=19&type=section&id=Revenue%20and%20Financial%20Resources) In 2025, the Group's revenue slightly decreased to 23,300 thousand HKD; cash and cash equivalents rose to 114,000 thousand HKD, but the current ratio declined from 201.6% to 161.7% Key Revenue and Financial Resources Data | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 114,000 | 98,600 | 15,400 | 15.62% | | Current ratio | 161.7% | 201.6% | -39.9% | -19.79% | - In the **2025** interim period, the Group's revenue was approximately **23,300 thousand HKD** (2024: approximately **24,800 thousand HKD**)[53](index=53&type=chunk) - During the interim period, the Group had no significant foreign exchange fluctuation risks or related hedges[54](index=54&type=chunk) [Debts and Bank Facilities](index=20&type=section&id=Debts%20and%20Bank%20Facilities) As of June 30, 2025, the Group had no bank or other borrowings, maintaining a **0%** capital-to-debt ratio, reflecting a robust financial position - As of June 30, 2025, the Group had no bank and other borrowings[55](index=55&type=chunk) - As of December 31, 2024, the Group had no bank and other borrowings, except for an unsecured bank overdraft of **100 thousand HKD**[56](index=56&type=chunk) - The Group's capital-to-debt ratio was **0%**[56](index=56&type=chunk) [Assets and Liabilities](index=20&type=section&id=Assets%20and%20Liabilities) As of June 30, 2025, the Group's total assets, total liabilities, and net assets all increased to approximately 938,500 thousand HKD, 430,700 thousand HKD, and 507,800 thousand HKD, respectively Total Assets and Liabilities | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | 938,500 | 757,200 | 181,300 | 23.94% | | Total liabilities | 430,700 | 255,800 | 174,900 | 68.37% | | Net assets | 507,800 | 501,400 | 6,400 | 1.28% | [Capital Structure](index=20&type=section&id=Capital%20Structure) As of June 30, 2025, and December 31, 2024, the Group's share capital remained unchanged - As of June 30, 2025, and December 31, 2024, there was no change in share capital[58](index=58&type=chunk) [Commitments and Pledged Assets](index=20&type=section&id=Commitments%20and%20Pledged%20Assets) As of June 30, 2025, and December 31, 2024, the Group had no outstanding contracted capital commitments or pledged assets - As of June 30, 2025, and December 31, 2024, the Group had no outstanding contracted capital commitments[59](index=59&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no pledged assets[60](index=60&type=chunk) [Material Investments, Acquisitions and Disposals](index=20&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) The Group holds perpetual securities from Standard Chartered and Bank of East Asia as material investments, which generated unrealized gains and coupon income in 2025, and are intended for continued holding due to attractive yields - The Group holds perpetual securities issued by Standard Chartered PLC and The Bank of East Asia, Limited as material investments[61](index=61&type=chunk)[69](index=69&type=chunk) - The Group intends to hold these investments due to their attractive yields[68](index=68&type=chunk)[74](index=74&type=chunk) [Standard Chartered PLC Perpetual Securities](index=20&type=section&id=Standard%20Chartered%20PLC%20Perpetual%20Securities) As of June 30, 2025, the Group held 7,000,000 USD Standard Chartered securities (fair value 51,400 thousand HKD, 5.5% of total assets), recognizing 1,700 thousand HKD unrealized gains and 1,200 thousand HKD coupon income, while Standard Chartered's operating income grew 10% but credit impairment increased Standard Chartered Securities Investment Data | Indicator | June 30, 2025 (thousand HKD) | % of Total Assets | | :--- | :--- | :--- | | Total cost of Standard Chartered securities | 47,300 | N/A | | Fair value of Standard Chartered securities | 51,400 | 5.5% | - Unrealized gains of approximately **1,700 thousand HKD** and coupon income of approximately **1,200 thousand HKD** were recognized from Standard Chartered securities during the interim period[62](index=62&type=chunk) - Standard Chartered Group's operating income increased by **10%** to **10,900,000 thousand USD**, driven by growth in wealth solutions, corporate and institutional banking, and financial markets businesses[63](index=63&type=chunk) - Credit impairment charges increased by **87,000 thousand USD** to **336,000 thousand USD**, primarily due to higher charges in wealth management and retail banking businesses[64](index=64&type=chunk) [The Bank of East Asia, Limited Perpetual Securities](index=23&type=section&id=The%20Bank%20of%20East%20Asia%2C%20Limited%20Perpetual%20Securities) As of June 30, 2025, the Group held 6,000,000 USD Bank of East Asia securities (fair value 47,500 thousand HKD, 5.1% of total assets), recognizing 900 thousand HKD unrealized gains and 1,400 thousand HKD coupon income, while Bank of East Asia's profit grew 14.1% despite reduced net interest income Bank of East Asia Securities Investment Data | Indicator | June 30, 2025 (thousand HKD) | % of Total Assets | | :--- | :--- | :--- | | Total cost of Bank of East Asia securities | 37,200 | N/A | | Fair value of Bank of East Asia securities | 47,500 | 5.1% | - Unrealized gains of approximately **900 thousand HKD** and coupon income of approximately **1,400 thousand HKD** were recognized from Bank of East Asia securities during the interim period[69](index=69&type=chunk) - Profit attributable to owners of Bank of East Asia was **2,407,000 thousand HKD**, an increase of **14.1%** from the same period in 2024[70](index=70&type=chunk) - Net interest income decreased by **10.7%** to **7,344,000 thousand HKD**, with net interest margin narrowing by **22 basis points** to **1.88%**, primarily impacted by falling interest rates[70](index=70&type=chunk) [Other Important Matters](index=24&type=section&id=Other%20Important%20Matters) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of the announcement date, June 30, 2025, and December 31, 2024, the Board was unaware of any significant contingent liabilities - The Board was not aware of any significant contingent liabilities[76](index=76&type=chunk) [Events After the Reporting Period](index=24&type=section&id=Events%20After%20the%20Reporting%20Period) The Company proposes a rights issue of up to 1,139,330,190 new shares at 0.12 HKD each, aiming to raise 136,700 thousand HKD (before expenses) for margin financing and general working capital - The Company proposes to issue up to **1,139,330,190** new shares via a rights issue at a subscription price of **0.12 HKD** per share to raise up to approximately **136,700 thousand HKD**[77](index=77&type=chunk) - Net proceeds from the rights issue, approximately **116,000 thousand HKD**, will be used for margin financing business, and **20,000 thousand HKD** for general working capital[77](index=77&type=chunk) - The results of the rights issue are expected to be announced on September 8, 2025[77](index=77&type=chunk) [Prospects](index=25&type=section&id=Prospects) The Group anticipates competitive corporate finance advisory, stable asset management income, a profitable H2 2025 launch for margin financing, and a cautious approach to money lending - Corporate finance advisory business faces intense competition, with Yu Ming focusing on contentious corporate finance transactions[80](index=80&type=chunk) - Asset management business provides a long-term stable revenue source, integrating resources from Yu Ming and Man Kee Securities to offer more comprehensive services[80](index=80&type=chunk) - Margin financing business will launch in the second half of **2025**, expected to be profitable and complementary to securities brokerage business[80](index=80&type=chunk) - Given the local economic slowdown, the money lending business will adopt a cautious approach[80](index=80&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) The Company has an Audit Committee and complied with the Corporate Governance Code (Appendix C1) and Model Code for Securities Transactions by Directors (Appendix C3) during the interim period - The Company has established an Audit Committee and reviewed the **2025** interim results report[81](index=81&type=chunk) - The Company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the interim period[82](index=82&type=chunk) - All Directors complied with the Model Code for Securities Transactions by Directors set out in Appendix C3 of the Listing Rules during the interim period[83](index=83&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee reviewed financial reporting and the 2025 interim results, relying on external auditor's review and management's statements - The Audit Committee reviewed financial reporting matters and the **2025** interim results report, including the interim condensed consolidated financial statements[81](index=81&type=chunk) - The Audit Committee relied on the review results by the external auditor in accordance with Hong Kong Standard on Review Engagements **2410** and management's representations[81](index=81&type=chunk) [Compliance with Code Provisions of Corporate Governance Code](index=25&type=section&id=Compliance%20with%20Code%20Provisions%20of%20Corporate%20Governance%20Code) The Company complied with all applicable code provisions and principles of the Corporate Governance Code (Appendix C1 of Listing Rules) during the interim period - The Company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules and applied the relevant principles during the interim period[82](index=82&type=chunk) [Model Code for Securities Transactions by Directors](index=26&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted and confirmed compliance by all Directors with the Model Code for Securities Transactions (Appendix C3 of Listing Rules) during the interim period - The Company adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for Directors' securities transactions[83](index=83&type=chunk) - Following enquiry, the Company confirmed that all Directors complied with the requirements set out in the Model Code during the interim period[83](index=83&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities or transferred treasury shares during the interim period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the interim period[84](index=84&type=chunk) - Neither the Company nor any of its subsidiaries sold or transferred treasury shares as defined by the Listing Rules during the interim period[84](index=84&type=chunk)

（一家於中華人民共和國註冊成立的股份有限公司） （股份代號：1880） 截至2025年6月30日止六個月之 中期業績公告 中國旅遊集團中免股份有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司 及其附屬公司截至2025年6月30日止六個月之未經審核中期業績（「中期業績」）。 本公告載列本公司2025年中期報告（「中期報告」）全文，並符合香港聯合交易所有 限公司證券上市規則中有關中期業績初步公告附載資料之要求。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 China Tourism Group Duty Free Corporation Limited 中國旅遊集團中免股份有限公司 中期業績已由董事會審計與風險管理委員會審閱。 本公告將於香港交易及結算所有限公司（「香港交易所」）網站( www.hkexnews.hk ) 及本公司網站( www.ctgdutyfree.com.cn )刊載。中期報告將於適當時候於香港交易 所及本公司的上述網站 ...

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份內容而產 生或因倚賴該等內容而引致之任何損失承擔任何責任。 （股份代號：1231） （於開曼群島註冊成立之有限公司） 截至2025年6月30日止6個月期間之中期業績 董事會謹此宣佈本集團於報告期間之未經審核綜合中期業績，連同去年同期之比較數字如 下： 簡明綜合損益及其他全面收益表 截至2025年6月30日止6個月期間 | | | 截至6月30日止6個月期間 | | | --- | --- | --- | --- | | | | 2025年 | 2024年 | | | 附註 | 千美元 | 千美元 | | | | （未經審核） （未經審核） | | | 收入 | 3 | 108,681 | 174,757 | | 銷售成本 | | (106,497) | (169,777) | | 毛利 | | 2,184 | 4,980 | | 其他收入及收益淨額 | | 269 | 254 | | 銷售及分銷成本 | | (1,175) | (1,632) | | 行政開支 ...

[GEM Market Characteristics](index=2&type=section&id=GEM%20Market%20Characteristics) The GEM market provides a listing platform for high-investment-risk companies, suitable for professional and sophisticated investors [Characteristics of the Growth Enterprise Market](index=2&type=section&id=Characteristics%20of%20the%20Growth%20Enterprise%20Market) The HKEX GEM market positions itself as a listing platform for high-investment-risk companies, suitable for professional and sophisticated investors, with securities potentially facing higher market volatility and no guarantee of high liquidity - The GEM market is positioned as a listing platform for high-investment-risk companies, suitable for professional and sophisticated investors[2](index=2&type=chunk)[7](index=7&type=chunk) - GEM securities may be subject to significant market volatility and do not guarantee high liquidity[3](index=3&type=chunk)[7](index=7&type=chunk) [CORPORATE INFORMATION](index=3&type=section&id=CORPORATE%20INFORMATION) This section details the company's governance structure, key personnel, and registered offices [BOARD OF DIRECTORS](index=3&type=section&id=BOARD%20OF%20DIRECTORS) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, with Mr Wang Zhong Sheng serving as Chairman - The Board of Directors includes executive directors Wang Zhong Sheng (Chairman), Chang Jian, Wang Chen, Chen Yikai, Liang Zhihao; non-executive director Li Siliang; and independent non-executive directors Liu Zhenbang, Wang Zhihe, and Xu Yuanjian[10](index=10&type=chunk)[11](index=11&type=chunk) [COMMITTEES](index=3&type=section&id=COMMITTEES) The company has an Audit Committee, Nomination Committee, and Remuneration Committee, each chaired by an independent non-executive director - The Audit Committee is chaired by Mr Liu Zhenbang, with members including Mr Wang Zhihe and Mr Xu Yuanjian[10](index=10&type=chunk)[11](index=11&type=chunk) - The Nomination Committee is chaired by Mr Wang Zhihe, with members including Mr Liu Zhenbang, Mr Xu Yuanjian, and Ms Li Siliang (appointed on July 2, 2025)[10](index=10&type=chunk)[11](index=11&type=chunk) - The Remuneration Committee is chaired by Mr Liu Zhenbang, with members including Mr Wang Zhihe and Mr Xu Yuanjian[12](index=12&type=chunk)[13](index=13&type=chunk) [COMPANY SECRETARY & COMPLIANCE OFFICER](index=4&type=section&id=COMPANY%20SECRETARY%20%26%20COMPLIANCE%20OFFICER) Mr Xie Jinli serves as Company Secretary, and Mr Wang Zhong Sheng serves as Compliance Officer and one of the authorized representatives - The Company Secretary is Mr Xie Jinli[12](index=12&type=chunk)[13](index=13&type=chunk) - The Compliance Officer is Mr Wang Zhong Sheng[12](index=12&type=chunk)[13](index=13&type=chunk) - The Authorized Representatives are Mr Wang Zhong Sheng and Mr Xie Jinli[12](index=12&type=chunk)[13](index=13&type=chunk) [REGISTERED & PRINCIPAL OFFICES](index=4&type=section&id=REGISTERED%20%26%20PRINCIPAL%20OFFICES) The company's registered office is in Bermuda, with its principal place of business and head office located in Tsuen Wan, Hong Kong - Hong Kong Head Office and Principal Place of Business: Unit 20, 19/F, Tsuen Fat Commercial Building, 362 Sha Tsui Road, Tsuen Wan, Hong Kong[12](index=12&type=chunk)[13](index=13&type=chunk) - Registered Office: Clarendon House, 2 Church Street, Hamilton HM11, Bermuda[12](index=12&type=chunk)[13](index=13&type=chunk) [REGISTRARS & AUDITOR](index=5&type=section&id=REGISTRARS%20%26%20AUDITOR) The company's principal share registrar is in Bermuda, its Hong Kong branch is Tricor Tengis Limited, and its auditor is Zhong Rui He Xin Certified Public Accountants Limited - Principal Share Registrar: Codan Services Limited[14](index=14&type=chunk) - Hong Kong Share Registrar: Tricor Tengis Limited[15](index=15&type=chunk) - Auditor: Zhong Rui He Xin Certified Public Accountants Limited[15](index=15&type=chunk) - Principal Banker: Bank of China (Hong Kong) Limited[15](index=15&type=chunk) - Stock Code: 08270[15](index=15&type=chunk) [FINANCIAL HIGHLIGHTS](index=6&type=section&id=FINANCIAL%20HIGHLIGHTS) This section provides an overview of the company's key financial performance indicators [Key Financial Performance](index=6&type=section&id=Key%20Financial%20Performance) For the six months ended June 30, 2025, the company's revenue significantly decreased by **52.1%** to **RMB 57.5 million**, resulting in a loss attributable to shareholders of **RMB 11.1 million** and a loss per share of **RMB 2.85 cents**, with no dividend recommended Key Financial Data for Interim 2025 | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 57,520 | 120,057 | -52.1% | | Loss attributable to shareholders | (11,116) | (4,113) | 170.3% (Loss widened) | | Loss per share | 2.85 cents | 1.05 cents | 171.4% (Loss widened) | | Dividend | Not recommended | Nil | - | [CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the company's condensed consolidated income, comprehensive income, financial position, cash flow, and equity statements [CONDENSED CONSOLIDATED INCOME STATEMENT](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20INCOME%20STATEMENT) For the six months ended June 30, 2025, the company experienced a significant decline in revenue, leading to reduced gross profit, increased administrative expenses, and an expanded loss for the period of **RMB 11.116 million** Condensed Consolidated Income Statement (For the six months ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 57,520 | 120,057 | -52.1% | | Cost of sales | (49,147) | (105,362) | -53.3% | | Gross profit | 8,373 | 14,695 | -43.1% | | Other income and gains or losses | 1,046 | 85 | 1130.6% | | Selling and distribution costs | (2,038) | (1,959) | 4.0% | | Administrative and other expenses | (19,096) | (14,687) | 30.0% | | Finance costs | (511) | (463) | 10.4% | | Loss before taxation | (12,226) | (2,329) | 424.9% (Loss widened) | | Income tax credit/(expense) | 1,110 | (1,784) | - | | Loss for the period | (11,116) | (4,113) | 170.3% (Loss widened) | | Basic loss per share | (2.85) cents | (1.05) cents | 171.4% (Loss widened) | [CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, the company's loss for the period was **RMB 11.116 million**, which, combined with exchange differences on foreign currency translation, resulted in an expanded total comprehensive loss of **RMB 12.036 million** Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Loss for the period | (11,116) | (4,113) | 170.3% (Loss widened) | | Exchange differences on translation of financial statements of foreign entities | (920) | (718) | 28.1% (Loss widened) | | Total comprehensive loss for the period | (12,036) | (4,831) | 149.1% (Loss widened) | [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, the company's total assets slightly increased, but net current liabilities expanded, leading to a decrease in net assets and total equity Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 252,629 | 237,193 | 6.59% | | Current assets | 90,323 | 90,556 | -0.26% | | **Total assets** | **342,952** | **327,749** | **4.64%** | | Current liabilities | 229,121 | 201,725 | 13.58% | | Net current liabilities | (138,798) | (111,169) | 24.85% (Liabilities widened) | | Non-current liabilities | 2,815 | 2,972 | -5.28% | | **Net assets** | **111,016** | **123,052** | **-9.78%** | | **Total equity** | **111,016** | **123,052** | **-9.78%** | [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, the company experienced reduced cash inflow from operating activities and a shift from inflow to outflow in financing activities, resulting in a net decrease in cash and bank balances Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Cash inflow from operating activities | 4,482 | 8,623 | -48.02% | | Cash outflow from investing activities | (178) | (5,567) | -96.80% (Outflow decreased) | | Cash (outflow)/inflow from financing activities | (5,332) | 9,557 | - (Shift from inflow to outflow) | | Net (decrease)/increase in cash and bank balances | (1,028) | 12,613 | - (Shift from increase to decrease) | | Cash and bank balances (end of period) | 47,456 | 58,057 | -18.26% | [CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=13&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2025, the company's equity attributable to equity holders decreased from **RMB 127.269 million** at the beginning of the year to **RMB 115.233 million** due to loss for the period and exchange differences Condensed Consolidated Statement of Changes in Equity (As of June 30) | Metric | Jan 1, 2025 (RMB thousands) | Loss for the period (RMB thousands) | Other comprehensive expense (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Equity attributable to equity holders of the Company | 127,269 | (11,116) | (920) | 115,233 | | Non-controlling interests | (4,217) | – | – | (4,217) | | **Total equity** | **123,052** | **(11,116)** | **(920)** | **111,016** | [NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=14&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed notes on the basis of financial statement presentation, application of new standards, revenue, taxation, and other financial items [Basis of presentation of financial statements](index=14&type=section&id=Basis%20of%20presentation%20of%20financial%20statements) The unaudited financial statements are prepared in accordance with generally accepted accounting principles in Hong Kong and reviewed by the Audit Committee, with the Group's primary business activities conducted in RMB - The financial statements are prepared in accordance with generally accepted accounting principles in Hong Kong and accounting standards issued by the Hong Kong Institute of Certified Public Accountants, presented under the historical cost convention[25](index=25&type=chunk)[28](index=28&type=chunk) - The unaudited consolidated results for the six months ended June 30, 2025, have been reviewed by the company's Audit Committee[26](index=26&type=chunk)[28](index=28&type=chunk) - The Group primarily operates in China, with business activities mainly conducted in RMB, hence the results are presented in RMB[27](index=27&type=chunk)[28](index=28&type=chunk) [Application of New and Revised Hong Kong Financial Reporting Standards](index=15&type=section&id=Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The application of new and revised Hong Kong Financial Reporting Standards had no significant impact on the Group's financial performance or position this period, but the Group is still assessing the impact of future new standards - The application of new and revised Hong Kong Financial Reporting Standards had no significant impact on the Group's financial performance and position this period[29](index=29&type=chunk)[33](index=33&type=chunk) - The Group is assessing the potential impact of new and revised standards, amendments, or interpretations not yet effective on future operating results and financial position[31](index=31&type=chunk)[33](index=33&type=chunk) [Revenue and segment information](index=15&type=section&id=Revenue%20and%20segment%20information) The company's main businesses are liquefied coalbed methane production and sales, and pipeline natural gas sales; for the six months ended June 30, 2025, liquefied coalbed methane sales significantly decreased, while pipeline natural gas sales increased, but total revenue still fell by **52.1%** year-on-year - The company's main businesses are liquefied coalbed methane production and sales (including providing coalbed methane liquefaction processing services) and pipeline natural gas sales[32](index=32&type=chunk)[34](index=34&type=chunk) Revenue Composition (For the six months ended June 30) | Revenue Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Liquefied coalbed methane sales | 37,228 | 108,150 | -65.6% | | Pipeline natural gas sales | 20,292 | 11,907 | 70.4% | | **Total Revenue** | **57,520** | **120,057** | **-52.1%** | | Bank deposit interest income | 31 | 8 | 287.5% | | Other income | 1,015 | 77 | 1218.2% | | **Total other income and gains or losses** | **1,046** | **85** | **1130.6%** | - The Group's revenue and assets primarily derive from and relate to its liquefied coalbed methane business in China, with other segments being immaterial, thus no geographical segment information is presented[35](index=35&type=chunk)[36](index=36&type=chunk) [Loss before taxation](index=17&type=section&id=Loss%20before%20taxation) For the six months ended June 30, 2025, the company's loss before taxation was primarily influenced by increased staff costs and decreased depreciation expenses Loss Before Taxation Composition (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 12,981 | 10,819 | 19.99% | | Depreciation of property, plant and equipment | 7,077 | 14,543 | -51.34% | [Income tax](index=18&type=section&id=Income%20tax) The company is not subject to profits tax in Hong Kong, while its Chinese subsidiaries are subject to a **25%** corporate income tax rate, and an income tax credit was recorded for the current period - Hong Kong profits tax is calculated at **16.5%**, but the Group was not subject to Hong Kong profits tax for this interim period[40](index=40&type=chunk)[43](index=43&type=chunk) - Chinese subsidiaries are subject to a corporate income tax rate of **25%**[41](index=41&type=chunk)[44](index=44&type=chunk) - There were no significant unprovided deferred taxes for this interim period[42](index=42&type=chunk)[44](index=44&type=chunk) [Dividends](index=19&type=section&id=Dividends) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for this interim period (2024 corresponding period: nil)[46](index=46&type=chunk)[47](index=47&type=chunk) [Loss per share](index=19&type=section&id=Loss%20per%20share) For the six months ended June 30, 2025, the company's basic loss per share was **RMB 2.85 cents**, an increase from the prior year, with no diluted loss per share presented Loss Per Share Calculation (For the six months ended June 30) | Metric | 2025 (RMB thousands/share) | 2024 (RMB thousands/share) | | :--- | :--- | :--- | | Loss attributable to equity holders of the Company | (11,116) | (4,113) | | Weighted average number of ordinary shares used in calculating basic loss per share (thousands of shares) | 390,451 | 390,451 | | Basic loss per share | (2.85) cents | (1.05) cents | - No diluted loss per share is presented as there were no potential dilutive ordinary shares for the quarters and six-month periods ended June 30, 2025, and June 30, 2024[50](index=50&type=chunk)[52](index=52&type=chunk) [Additions and disposals of property, plant and equipment](index=20&type=section&id=Additions%20and%20disposals%20of%20property%2C%20plant%20and%20equipment) During this interim period, the Group acquired property, plant and equipment totaling approximately **RMB 23.045 million**, a significant increase from the prior year, with no material disposals - During this interim period, the Group acquired property, plant and equipment of approximately **RMB 23,045,000** (2024 corresponding period: approximately **RMB 1,419,000**)[51](index=51&type=chunk)[53](index=53&type=chunk) - There were no major disposals during this interim period (2024 corresponding period: nil)[51](index=51&type=chunk)[53](index=53&type=chunk) [Trade and other receivables](index=20&type=section&id=Trade%20and%20other%20receivables) As of June 30, 2025, the Group's total trade and other receivables increased to **RMB 34.170 million**, with a significant rise in trade receivables and a notable increase in receivables within one month Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Trade receivables | 4,180 | 828 | 404.83% | | Prepayments and other receivables | 26,365 | 23,298 | 13.16% | | Other recoverable taxes | 3,625 | 4,464 | -18.79% | | **Total** | **34,170** | **28,590** | **19.52%** | Ageing Analysis of Trade Receivables and Bills Receivable (By invoice date, as of June 30) | Ageing | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 3,639 | 374 | | After 1 month but within 3 months | – | 90 | | After 3 months but within 6 months | 537 | 90 | | After 6 months but within 12 months | – | 270 | | After 12 months | 4 | 4 | | **Total** | **4,180** | **828** | [Trade and other payables](index=22&type=section&id=Trade%20and%20other%20payables) As of June 30, 2025, the Group's total trade and other payables increased to **RMB 197.618 million**, driven by a significant rise in accrued expenses and other payables, with a notable increase in trade payables due after 12 months Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 40,431 | 35,440 | 14.08% | | Accrued expenses and other payables | 156,616 | 124,328 | 25.97% | | Other taxes payable | 571 | 640 | -10.80% | | **Total** | **197,618** | **160,408** | **23.20%** | Ageing Analysis of Trade Payables (By invoice date, as of June 30) | Ageing | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 1,705 | 7,921 | | After 1 month but within 3 months | 5,781 | 26,041 | | After 3 months but within 6 months | 2,917 | 88 | | After 6 months but within 12 months | 415 | 173 | | After 12 months | 29,613 | 1,217 | | **Total** | **40,431** | **35,440** | [Bank and other borrowings](index=23&type=section&id=Bank%20and%20other%20borrowings) As of June 30, 2025, the Group's total bank and other borrowings amounted to **RMB 20.400 million**, a decrease from the end of 2024, primarily consisting of secured bank loans and unsecured other loans due within one year Bank and Other Borrowings (As of June 30) | Borrowing Type | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Secured bank loans repayable within 1 year or on demand | 10,000 | 13,000 | -23.08% | | Unsecured other loans repayable within 1 year or on demand | 10,400 | 10,400 | 0.00% | | **Total** | **20,400** | **23,400** | **-12.82%** | - Secured bank loans bear interest at annual rates ranging from **3.1%** to **3.45%**[63](index=63&type=chunk) - Unsecured other loans refer to loans payable to non-controlling shareholders of Chinese subsidiaries, bearing interest at a fixed annual rate of **4.35%**[63](index=63&type=chunk) [Share capital](index=24&type=section&id=Share%20capital) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged at **2,500,000 thousand shares** and **390,451 thousand shares**, respectively Share Capital Composition (As of June 30) | Share Capital Type | June 30, 2025 Number of Shares (thousands) | June 30, 2025 Total Par Value (RMB thousands) | Dec 31, 2024 Number of Shares (thousands) | Dec 31, 2024 Total Par Value (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Authorized share capital | 2,500,000 | 174,064 | 2,500,000 | 174,064 | | Issued and fully paid share capital | 390,451 | 26,305 | 390,451 | 26,305 | [Commitments](index=24&type=section&id=Commitments) As of June 30, 2025, the Group's contracted but unprovided capital expenditure in the financial statements amounted to **RMB 8.806 million**, primarily for the acquisition of property, plant and equipment and construction in progress Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Capital expenditure contracted but not provided for in the financial statements | 8,806 | 15,636 | -43.70% | [MANAGEMENT DISCUSSION AND ANALYSIS](index=25&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section discusses the company's financial performance, business operations, liquidity, and future outlook [FINANCIAL REVIEW](index=25&type=section&id=FINANCIAL%20REVIEW) For this interim period, the Group's consolidated turnover decreased by **52.1%** year-on-year to **RMB 57.5 million**, resulting in a loss attributable to shareholders of approximately **RMB 11.1 million**, primarily due to the suspension of liquefied coalbed methane production for upgrades and increased administrative expenses Financial Performance Overview (For the six months ended June 30) | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Consolidated turnover | 57.5 | 120.1 | -52.1% | | Loss attributable to shareholders | 11.1 | 4.1 | 170.7% (Loss widened) | - The decrease in revenue was primarily due to a subsidiary suspending liquefied coalbed methane production in May 2025 for comprehensive renovation and upgrade of its liquefaction machinery and equipment[69](index=69&type=chunk)[71](index=71&type=chunk) - Administrative expenses increased from **RMB 14.6 million** to **RMB 19.1 million**, mainly driven by the expansion of the Board of Directors (an increase of approximately **RMB 2.0 million** in directors' emoluments) and increased R&D costs for newly established wholly-owned subsidiaries[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) [BUSINESS REVIEW AND DEVELOPMENT PROSPECTS](index=26&type=section&id=BUSINESS%20REVIEW%20AND%20DEVELOPMENT%20PROSPECTS) The Group continues to develop gas field blocks, increasing coalbed methane well numbers, but liquefied business production is suspended for technical upgrades due to equipment wear; market sales are affected by the economic environment, showing a downward trend in prices, while the Group focuses on upstream coalbed methane exploration and seeks financing for drilling projects - Huiyang New Energy holds interests in coalbed methane assets in Shanxi Province, China, with the Yangcheng area covering approximately **96 square kilometers**, primarily developing coal seams No 3 and No 15[73](index=73&type=chunk)[75](index=75&type=chunk) Coalbed Methane Asset Reserve Changes (As of June 30) | Reserve Type | June 30, 2025 (billion cubic feet) | March 31, 2012 (billion cubic feet) | | :--- | :--- | :--- | | Original gas-in-place for all blocks | 193.6 | 272.4 | | Proved (1P) net reserves | 108.9 | 3.5 | | Proved plus probable (2P) net reserves | 154.7 | 27.7 | | Proved plus probable plus possible (3P) net reserves | 193.6 | 205.0 | - As of June 30, 2025, the Group had completed surface construction and drilling for **235** coalbed methane wells, with **170** wells in production and stable operation[84](index=84&type=chunk)[86](index=86&type=chunk) - Wholly-owned subsidiary Shuntai Company suspended liquefied coalbed methane production on May 18, 2025, for comprehensive renovation and upgrade of its liquefaction machinery and equipment, with an average daily production of approximately **162,000 cubic meters** in Q1 2025[85](index=85&type=chunk)[87](index=87&type=chunk) - Marketing and sales business systems and strategies remained largely consistent, but sales prices showed a downward trend due to the overall economic environment, impacting sales performance[88](index=88&type=chunk)[90](index=90&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=30&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the Group's net assets were approximately **RMB 111.016 million**, with cash and bank balances of approximately **RMB 47.456 million**, and a capital-to-debt ratio of approximately **17.70%**, with plans to accelerate natural gas drilling projects through financing Liquidity Overview (As of June 30) | Metric | June 30, 2025 (RMB thousands) | | :--- | :--- | | Net assets | 111,016 | | Cash and bank balances | 47,456 | | Capital-to-debt ratio | 17.70% | - The Group adopts a prudent financial and risk management strategy, avoiding high leverage financing arrangements[89](index=89&type=chunk)[91](index=91&type=chunk) - The Group plans to accelerate natural gas drilling projects once sufficient funding is secured in the future (whether through internal cash flow or financing)[92](index=92&type=chunk)[94](index=94&type=chunk) - Apart from planned investments in upstream coalbed methane exploration and extraction, the Group has no other plans for acquisitions, investments, disposals, or scaling down existing businesses[92](index=92&type=chunk)[94](index=94&type=chunk) [Interim dividend](index=31&type=section&id=Interim%20dividend) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for this interim period (2024 corresponding period: nil)[93](index=93&type=chunk)[95](index=95&type=chunk) [Employees](index=32&type=section&id=Employees) As of June 30, 2025, the Group employed **236** staff, with staff costs of approximately **RMB 12.981 million**, and remuneration policy primarily based on individual performance Employee Composition and Costs (As of June 30) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total employees | 236 persons | - | | R&D personnel | 23 persons | - | | Engineering and customer service personnel | 122 persons | - | | Administrative personnel | 86 persons | - | | Marketing and sales personnel | 5 persons | - | | Staff costs (including directors' emoluments) | RMB 12,981,000 | RMB 10,819,000 | - The Group's remuneration and bonus policy is primarily determined by individual employee performance, with continuous provision of professional development and training opportunities[96](index=96&type=chunk)[99](index=99&type=chunk) [Risk in Foreign Exchange](index=32&type=section&id=Risk%20in%20Foreign%20Exchange) Most of the Group's transactions are denominated in their respective functional currencies, and the directors consider foreign exchange risk to be immaterial - Most of the revenue received and expenses incurred by the Group's entities are denominated in their respective functional currencies[97](index=97&type=chunk)[100](index=100&type=chunk) - The directors consider the foreign exchange risk faced by the Group to be immaterial[97](index=97&type=chunk)[100](index=100&type=chunk) [Significant investment, material acquisitions and disposal of subsidiaries](index=32&type=section&id=Significant%20investment%2C%20material%20acquisitions%20and%20disposal%20of%20subsidiaries) Except as disclosed in this report, the Group had no significant investments, material acquisitions, or disposals of subsidiaries and associates during this interim period - Except as disclosed in this report, the Group had no significant investments, material acquisitions, or disposals of subsidiaries and associates during this interim period[98](index=98&type=chunk)[101](index=101&type=chunk) [Outlook](index=33&type=section&id=Outlook) The Group is committed to R&D of hydrocarbon-to-natural gas technology and has discovered 'thermal recovery technology' to increase upstream wellhead gas output, which are expected to become new profit growth points and ensure stable gas supply for LNG plants, with strong natural gas market demand driven by environmental concerns - Since 2016, the Group has independently researched and developed a hydrocarbon-to-natural gas project (ultra-high temperature steam-induced coal mineral accelerated metamorphism and hydrocarbon generation technology), entering the industrialization scale-up design phase in the second half of 2019[102](index=102&type=chunk)[103](index=103&type=chunk) - R&D progress was slow due to the pandemic, with small-scale pilot equipment completed in June 2024, but domestic heat-resistant steel could not achieve stable long-term operation at **1,100°C**; in January 2025, the Group shifted its R&D focus to lowering reaction temperatures, and has now largely achieved a **1,000°C** reaction environment[102](index=102&type=chunk)[103](index=103&type=chunk) - During R&D, the Group discovered 'thermal recovery technology' for accelerated metamorphism and hydrocarbon generation, reserve increase, and production enhancement of underground coal minerals in coalbed methane fields, which is expected to positively impact upstream wellhead gas output[104](index=104&type=chunk)[106](index=106&type=chunk) - This technology and 'thermal recovery technology' are expected to become new profit growth points for the Group, ensuring stable gas supply for liquefied natural gas plants and reducing external factors and operational risks[105](index=105&type=chunk)[106](index=106&type=chunk) - As environmental concerns increase, highly polluting energy sources will be phased out faster by the market, and natural gas market demand will maintain strong growth momentum[107](index=107&type=chunk)[109](index=109&type=chunk) [DIRECTORS' AND SHAREHOLDERS' INTERESTS](index=35&type=section&id=DIRECTORS'%20AND%20SHAREHOLDERS'%20INTERESTS) This section details the interests and short positions of directors and substantial shareholders in the company's shares and debentures [DIRECTORS' AND CHIEF EXECUTIVE'S INTERESTS OR SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES](index=35&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20OR%20SHORT%20POSITIONS%20IN%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, several directors held long positions in the company's shares, with Mr Wang Zhong Sheng holding a **73.93%** beneficial interest and a **0.58%** interest through a controlled corporation Directors' Long Positions in the Company's Shares (As of June 30) | Name | Capacity | Nature of Interest | Number of Shares/Underlying Shares | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr Wang Zhong Sheng | Interest in controlled corporation | Corporate interest | 2,264,812 | 0.58% | | Mr Wang Zhong Sheng | Beneficial owner | Personal | 288,661,440 | 73.93% | | Mr Chang Jian | Beneficial owner | Personal | 2,500,000 | 0.64% | | Mr Wang Chen | Beneficial owner | Personal | 250,000 | 0.06% | | Mr Liang Zhihao | Option grantee | Personal | 800,000 | 0.2% | | Ms Li Siliang | Beneficial owner | Personal | 487,500 | 0.12% | - Mr Wang Zhong Sheng holds an interest in **2,264,812** shares through Baolian Investment Limited, which is wholly owned by him[113](index=113&type=chunk)[114](index=114&type=chunk) - Mr Liang Zhihao holds an interest as an option grantee to subscribe for **800,000** shares under the new share option scheme adopted on March 28, 2022[116](index=116&type=chunk) - Save as disclosed above, as at June 30, 2025, none of the directors or chief executive had any other interests or short positions in any shares, underlying shares or debentures of the Company or any of its associated corporations[117](index=117&type=chunk)[118](index=118&type=chunk) [SUBSTANTIAL SHAREHOLDERS AND PERSONS WITH DISCLOSEABLE INTEREST AND SHORT POSITION IN SHARES AND OPTIONS UNDER SFO](index=40&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%20AND%20PERSONS%20WITH%20DISCLOSEABLE%20INTEREST%20AND%20SHORT%20POSITION%20IN%20SHARES%20AND%20OPTIONS%20UNDER%20SFO) As of June 30, 2025, apart from the directors, Ms Zhao Xin, as Mr Wang Zhong Sheng's spouse, is deemed to have an interest in **290,926,252** shares of the Company, representing **74.51%** of the total share capital Substantial Shareholders' Long Positions in Shares (As of June 30) | Name | Number of Shares | Nature of Interest | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Ms Zhao Xin | 290,926,252 | Interest of spouse | 74.51% | - Ms Zhao Xin (spouse of Mr Wang Zhong Sheng) is deemed under the Securities and Futures Ordinance to have an interest in the Company by virtue of her spouse's interest[121](index=121&type=chunk) - Save as disclosed above, no other persons had any interests or short positions in the shares and underlying shares of the Company[121](index=121&type=chunk) [DIRECTORS' AND CHIEF EXECUTIVE'S RIGHTS TO ACQUIRE SHARES OR DEBENTURES](index=41&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20RIGHTS%20TO%20ACQUIRE%20SHARES%20OR%20DEBENTURES) Except for the disclosed directors' share interests and share option schemes, no rights to acquire benefits by purchasing the company's shares or debentures were granted to or exercised by any director, their spouse/minor children, or chief executive during this interim period - Save for the disclosed directors' share interests and share option schemes, no rights to acquire benefits by purchasing the Company's shares or debentures were granted to or exercised by any director or their spouse/minor children or chief executive during this interim period[122](index=122&type=chunk)[124](index=124&type=chunk) - Neither the Company nor any of its subsidiaries has entered into any arrangements that would enable directors to acquire such rights in any other body corporate[122](index=122&type=chunk)[124](index=124&type=chunk) [DIRECTORS' AND CONTROLLING SHAREHOLDERS' INTERESTS IN COMPETING BUSINESS](index=41&type=section&id=DIRECTORS'%20AND%20CONTROLLING%20SHAREHOLDERS'%20INTERESTS%20IN%20COMPETING%20BUSINESS) From the listing date to the report date, the directors are unaware of any business or interests held by directors, controlling shareholders, or their close associates that compete or may compete with the Group's business, nor any other conflicts of interest - From the listing date to the date of this report, the directors are unaware of any business or interests held by directors, controlling shareholders, or their close associates that constitute or may constitute competition with the Group's business[123](index=123&type=chunk)[125](index=125&type=chunk) - Nor are they aware of any other conflicts of interest existing or potentially existing between any such persons and the Group[123](index=123&type=chunk)[125](index=125&type=chunk) [SHARE OPTION SCHEME](index=42&type=section&id=SHARE%20OPTION%20SCHEME) This section provides an overview of the company's share option schemes, including their terms, limits, and current status [Overview of Share Option Schemes](index=42&type=section&id=Overview%20of%20Share%20Option%20Schemes) The company's previous share option scheme adopted in 2011 expired in 2021, with all options lapsed; a new scheme adopted in 2022 aims to incentivize eligible participants and is valid until March 27, 2032 - The previous share option scheme expired on May 18, 2021, with all **32,119,074** share options lapsed and no options remaining outstanding[126](index=126&type=chunk)[128](index=128&type=chunk) - The new share option scheme was adopted on March 28, 2022, with a validity period of **10 years**, expiring on March 27, 2032[127](index=127&type=chunk)[128](index=128&type=chunk) - The new share option scheme aims to grant share options to selected eligible participants as a reward or return for their contributions or potential contributions[129](index=129&type=chunk)[131](index=131&type=chunk) - Eligible participants include full-time/part-time employees, consultants/advisors, and directors of any member company of the Group[129](index=129&type=chunk)[131](index=131&type=chunk) [Scheme Limits and Terms](index=43&type=section&id=Scheme%20Limits%20and%20Terms) As of June 30, 2025, the number of options available for grant under the new share option scheme is zero; the maximum quota for each participant cannot exceed **1%** of issued shares, and the subscription price must not be lower than the highest of the closing price on the offer date, the average closing price of the preceding five business days, and the par value of the shares - As of June 30, 2025, the number of share options available for grant under the scheme mandate of the new share option scheme was **zero** shares[130](index=130&type=chunk)[132](index=132&type=chunk) - The maximum quota for each participant under the new share option scheme shall not exceed **1%** of the issued shares[133](index=133&type=chunk)[136](index=136&type=chunk) - Share options may be exercised in full or in part at any time during the period determined by the directors and notified to the grantee, but not exceeding **ten years** from the date of grant[134](index=134&type=chunk)[136](index=136&type=chunk) - Grantees are required to pay a nominal consideration of **HKD 1.00** upon acceptance of the share option[135](index=135&type=chunk)[136](index=136&type=chunk) - The subscription price for shares shall not be less than the highest of the closing price on the offer date, the average closing price for the five (5) consecutive business days immediately preceding the offer date, and the par value of the shares on the offer date[137](index=137&type=chunk)[138](index=138&type=chunk) [Share Option Information](index=46&type=section&id=Share%20Option%20Information) As of June 30, 2025, the company had **10,865,003** outstanding share options with a weighted average exercise price of **HKD 0.455**, all of which are immediately exercisable Share Option Overview (As of June 30) | Category of Participants | Jan 1, 2025 (options) | Granted during the period (options) | Exercised during the period (options) | Cancelled/Lapsed during the period (options) | June 30, 2025 (options) | | :--- | :--- | :--- | :--- | :--- | :--- | | Executive Director (Mr Liang Zhihao) | 800,000 | – | – | – | 800,000 | | Employees | 8,190,003 | – | – | – | 8,190,003 | | Corporate Finance Advisor | 1,875,000 | – | – | – | 1,875,000 | | **Total** | **10,865,003** | **–** | **–** | **–** | **10,865,003** | - All granted share options are immediately vested, with a contractual term of **10 years**[143](index=143&type=chunk) Number of Share Options and Weighted Average Exercise Price (As of June 30) | Status | Weighted Average Exercise Price (HKD) | Number of Share Options (options) | | :--- | :--- | :--- | | Outstanding as of Jan 1, 2025 | 0.455 | 10,865,003 | | Outstanding as of June 30, 2025 | 0.455 | 10,865,003 | | Exercisable as of June 30, 2025 | 0.455 | 10,865,003 | [OTHER INFORMATION](index=48&type=section&id=OTHER%20INFORMATION) This section covers various additional disclosures including contingent liabilities, capitalized interest, future investment plans, asset charges, and post-balance sheet events [CONTINGENT LIABILITIES](index=48&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[147](index=147&type=chunk)[151](index=151&type=chunk) [AMOUNT OF CAPITALISED INTEREST](index=48&type=section&id=AMOUNT%20OF%20CAPITALISED%20INTEREST) Except as disclosed in this report, the Group did not capitalize any interest during this interim period - Except as disclosed in this report, the Group did not capitalize any interest during this interim period[148](index=148&type=chunk)[152](index=152&type=chunk) [FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS](index=48&type=section&id=FUTURE%20PLANS%20FOR%20MATERIAL%20INVESTMENTS%20OR%20CAPITAL%20ASSETS) As of June 30, 2025, and December 31, 2024, the Group had no other plans for material investments or capital assets - As of June 30, 2025, and December 31, 2024, the Group had no other plans for material investments and capital assets[149](index=149&type=chunk)[153](index=153&type=chunk) [CHARGES ON GROUP ASSETS](index=48&type=section&id=CHARGES%20ON%20GROUP%20ASSETS) As of June 30, 2025, the Group's owner-occupied buildings and leasehold land use rights were pledged as collateral for bank borrowings Overview of Pledged Assets (As of June 30) | Asset Type | Carrying Amount (RMB thousands) | | :--- | :--- | | Owner-occupied buildings (before impairment) | 8,847 | | Leasehold land use rights | 7,797 | - The above assets were pledged as security for bank borrowings granted to the Group[150](index=150&type=chunk)[154](index=154&type=chunk) [EVENTS AFTER BALANCE SHEET DATE](index=49&type=section&id=EVENTS%20AFTER%20BALANCE%20SHEET%20DATE) From June 30, 2025, to the date of this report, the Board of Directors is unaware of any significant events requiring disclosure, other than those already disclosed herein - From June 30, 2025, to the date of this report, save as disclosed in this report, the Board of Directors is not aware of any significant events that have occurred and require disclosure[155](index=155&type=chunk)[160](index=160&type=chunk) [CONVERTIBLE SECURITIES, WARRANTS OR SIMILAR RIGHTS](index=49&type=section&id=CONVERTIBLE%20SECURITIES%2C%20WARRANTS%20OR%20SIMILAR%20RIGHTS) As of June 30, 2025, the company had **10,865,003** outstanding share options under the share option scheme adopted on March 28, 2022, entitling holders to subscribe for shares - As of June 30, 2025, the Company had **10,865,003** outstanding share options under the share option scheme adopted on March 28, 2022, entitling holders to subscribe for shares[156](index=156&type=chunk)[160](index=160&type=chunk) [PRE-EMPTIVE RIGHTS](index=49&type=section&id=PRE-EMPTIVE%20RIGHTS) Neither the company's bye-laws nor Bermuda law contains provisions for pre-emptive rights requiring the company to offer new shares proportionally to existing shareholders - Neither the Company's bye-laws nor Bermuda law contains provisions for pre-emptive rights requiring the Company to offer new shares proportionally to existing shareholders[157](index=157&type=chunk)[161](index=161&type=chunk) [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=49&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECURITIES) During this interim period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's or its subsidiaries' listed securities - During this interim period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's or its subsidiaries' listed securities[158](index=158&type=chunk)[162](index=162&type=chunk) [COMMITMENTS (Re-reference)](index=49&type=section&id=COMMITMENTS_re_reference) Details of the Group's commitments as of June 30, 2025, are provided in Note 13 to the unaudited condensed consolidated financial statements - Details of the Group's commitments as of June 30, 2025, are set out in Note 13 to the unaudited condensed consolidated financial statements[159](index=159&type=chunk)[163](index=163&type=chunk) [CORPORATE GOVERNANCE](index=50&type=section&id=CORPORATE%20GOVERNANCE) This section outlines the company's corporate governance practices, including board changes, audit committee functions, and compliance with governance codes [DISCLOSURE ON CHANGES OF INFORMATION OF DIRECTORS](index=50&type=section&id=DISCLOSURE%20ON%20CHANGES%20OF%20INFORMATION%20OF%20DIRECTORS) Since the release of the company's 2024 annual report, there have been no changes or updates to director positions during this interim period - Since the release of the Company's 2024 annual report, there have been no changes or updates to director positions during this interim period[164](index=164&type=chunk)[168](index=168&type=chunk) [AUDIT COMMITTEE](index=50&type=section&id=AUDIT%20COMMITTEE) The company's Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and monitoring financial reporting and internal controls, and has reviewed the unaudited consolidated results for this interim period - The Audit Committee comprises three independent non-executive directors: Mr Wang Zhihe, Mr Xu Yuanjian, and Mr Liu Zhenbang (Chairman)[166](index=166&type=chunk)[169](index=169&type=chunk) - Its primary responsibilities include reviewing and monitoring the Group's financial reporting principles, practices, internal control procedures, and related matters[165](index=165&type=chunk)[169](index=169&type=chunk) - During this interim period, the Audit Committee held two meetings and reviewed the Group's unaudited consolidated results[166](index=166&type=chunk)[169](index=169&type=chunk) - The Audit Committee believes that the Group has employed sufficient staff to handle accounting, finance, and internal control functions[167](index=167&type=chunk)[169](index=169&type=chunk) [CORPORATE GOVERNANCE COMPLIANCE](index=51&type=section&id=CORPORATE%20GOVERNANCE_Compliance) The Group complied with the Corporate Governance Code during this interim period, with two deviations: independent non-executive directors lack fixed terms, and the roles of Chairman and Chief Executive are combined in Mr Wang Zhong Sheng; the company has adopted a code of conduct for directors' securities transactions and confirmed the independence of all independent non-executive directors - The Group complied with the code provisions of the Corporate Governance Code and Corporate Governance Report set out in Appendix 15 of the GEM Listing Rules during this interim period, with two deviations[170](index=170&type=chunk)[173](index=173&type=chunk) - Deviation from Code Provision A.4.1: Independent non-executive directors do not have fixed terms but are subject to retirement by rotation at annual general meetings[171](index=171&type=chunk)[173](index=173&type=chunk) - Deviation from Code Provision A.2.1: The roles of Chairman (Mr Wang Zhong Sheng) and Chief Executive are combined in the same person, and the company has no independent Chief Executive[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk) - The company will continue to consider the feasibility of appointing a separate Chief Executive[175](index=175&type=chunk)[178](index=178&type=chunk) - The company has adopted a code of conduct regarding directors' securities transactions, and no non-compliance was found during this interim period[176](index=176&type=chunk)[178](index=178&type=chunk) - The company has received confirmation of independence from each independent non-executive director and considers all its independent non-executive directors to be independent[179](index=179&type=chunk)[180](index=180&type=chunk)

[Company Information and Announcements](index=1&type=section&id=Company%20Information%20and%20Announcements) [Announcement Details](index=1&type=section&id=Announcement%20Details) SunCorp Technologies Limited announced its unaudited interim consolidated results for the six months ended June 30, 2025, in compliance with HKEX Listing Rules - Company Name: **SunCorp Technologies Limited** (Stock Code: **1063**)[2](index=2&type=chunk) - Announcement Content: Unaudited interim consolidated results for the six months ended June 30, 2025[3](index=3&type=chunk) - Board Members: Executive Directors Mr. Zhu Yuqi, Mr. Tang Ximing; Independent Non-executive Directors Mr. Man Yuen, Mr. Ma Jianling, Ms. Wong Chi[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue increased by 46.3% to HK$25,167 thousand, turning a prior-year loss of HK$38,799 thousand into a profit of HK$21,393 thousand, primarily due to unrealized gains on financial assets at fair value through profit or loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 25,167 | 17,198 | +46.3% | | Gross Profit | 7,033 | 7,056 | -0.3% | | Unrealized Gain/(Loss) on Financial Assets at FVTPL | 20,253 | (30,655) | N/A | | Realized Gain/(Loss) on Financial Assets at FVTPL | 2,332 | (8,761) | N/A | | Operating Profit/(Loss) | 21,491 | (38,758) | N/A | | Profit/(Loss) Before Tax | 21,393 | (38,799) | N/A | | Profit/(Loss) and Total Comprehensive Income for the Period | 21,393 | (38,799) | N/A | | Basic and Diluted EPS/(LPS) (HK Cents) | 1.39 | (2.52) | N/A | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to HK$278,737 thousand, net current assets to HK$225,175 thousand, and net assets to HK$219,298 thousand, driven by an increase in financial assets at fair value through profit or loss Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Non-current Assets | 244 | 359 | (115) | | Current Assets | 278,493 | 231,109 | 47,384 | | Inventories | 3,013 | 5,474 | (2,461) | | Trade and Other Receivables | 29,325 | 22,658 | 6,667 | | Loans Receivable | 97,240 | 91,687 | 5,553 | | Financial Assets at Fair Value Through Profit or Loss | 104,102 | 80,971 | 23,131 | | Cash and Bank Balances - Own Accounts | 14,428 | 14,775 | (347) | | Current Liabilities | 53,318 | 31,943 | 21,375 | | Trade and Other Payables | 52,233 | 30,409 | 21,824 | | Net Current Assets | 225,175 | 199,166 | 26,009 | | Net Assets | 219,298 | 197,905 | 21,393 | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, total equity increased to HK$219,298 thousand, primarily due to a profit of HK$21,393 thousand for the period, reversing the loss from the prior year Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Total Equity at Jan 1 | 197,905 | 243,274 | (45,369) | | Profit/(Loss) and Total Comprehensive Income for the Period | 21,393 | (38,799) | 60,192 | | Total Equity at June 30 | 219,298 | 204,475 | 14,823 | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was HK$4,494 thousand, net cash from investing activities was HK$95 thousand, and net cash from financing activities was HK$4,052 thousand, resulting in a net decrease of HK$347 thousand in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (4,494) | (1,427) | (3,067) | | Net Cash From Investing Activities | 95 | 8 | 87 | | Net Cash From/(Used in) Financing Activities | 4,052 | (940) | 4,992 | | Net Decrease in Cash and Cash Equivalents | (347) | (2,359) | 2,012 | | Cash and Cash Equivalents at End of Period | 14,428 | 19,162 | (4,734) | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The financial statements are prepared in accordance with Appendix D2 of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting," using a historical cost basis with certain financial instruments measured at fair value - Preparation Basis: Appendix D2 of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting"[14](index=14&type=chunk)[19](index=19&type=chunk) - Measurement Basis: Historical cost basis, with certain financial instruments measured at fair value[15](index=15&type=chunk)[19](index=19&type=chunk) - Accounting Policies: Consistent with those followed in the 2024 annual financial statements, except as noted below[16](index=16&type=chunk)[19](index=19&type=chunk) [Adoption of New and Revised HKFRSs](index=7&type=section&id=Adoption%20of%20New%20and%20Revised%20HKFRSs) The company adopted new and revised HKFRSs effective January 1, 2025, including HKAS 21 (Amendment) "Lack of Exchangeability," which had no material impact on financial position or performance - New Standards Adopted: Revisions to Hong Kong Financial Reporting Standards effective January 1, 2025[17](index=17&type=chunk)[20](index=20&type=chunk) - Specific Revisions: Including HKAS 21 (Amendment) "Lack of Exchangeability"[18](index=18&type=chunk)[20](index=20&type=chunk) - Impact: No material effect on the financial position and performance for the current and prior periods[18](index=18&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) Group revenue primarily stems from trading computer-related components, apparel, and beauty products (75.6%), followed by money lending (23.3%) and securities brokerage (1.1%), with all segments showing asset and liability growth 2025 First Half Segment Revenue and Profit | Business Segment | Revenue (HK$ '000) | % of Total | Segment Profit/(Loss) (HK$ '000) | | :--- | :--- | :--- | :--- | | Trading of Second-hand Computer Related Components, Apparel and Beauty Products | 19,037 | 75.6% | 140 | | Money Lending | 5,855 | 23.3% | 4,158 | | Provision of Brokerage, Placement and Underwriting Services | 275 | 1.1% | (2,888) | | **Total** | **25,167** | **100%** | **1,410** | 2025 First Half Segment Assets and Liabilities | Business Segment | Segment Assets June 30, 2025 (HK$ '000) | Segment Assets Dec 31, 2024 (HK$ '000) | Segment Liabilities June 30, 2025 (HK$ '000) | Segment Liabilities Dec 31, 2024 (HK$ '000) | | :--- | :--- | :--- | :--- | :--- | | Trading of Second-hand Computer Related Components, Apparel and Beauty Products | 26,070 | 19,687 | 6,589 | 1,503 | | Money Lending | 97,881 | 92,328 | 12,222 | 11,199 | | Provision of Brokerage, Placement and Underwriting Services | 39,296 | 25,442 | 30,646 | 15,566 | | **Total** | **163,247** | **137,457** | **49,457** | **28,268** | - Major Customers: In the first half of 2025, Customer A contributed **HK$6,475 thousand**, Customer B contributed **HK$2,700 thousand**, and Customer C contributed **HK$2,833 thousand**[36](index=36&type=chunk) [Other Income](index=11&type=section&id=Other%20Income) For the six months ended June 30, 2025, total other income was HK$157 thousand, primarily comprising miscellaneous income, bank interest income, and gain on disposal of an associate Other Income Details | Income Source | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Bank Interest Income | 15 | 8 | | Gain on Disposal of an Associate | 4 | – | | Miscellaneous Income | 138 | 37 | | **Total** | **157** | **45** | [Income Tax](index=11&type=section&id=Income%20Tax) For the six months ended June 30, 2025 and 2024, no Hong Kong profits tax was provided as Hong Kong subsidiaries had no assessable profits or sufficient tax losses - Income Tax: No Hong Kong profits tax was provided[40](index=40&type=chunk)[41](index=41&type=chunk) - Reason: Hong Kong subsidiaries had no assessable profits or sufficient tax losses to offset[40](index=40&type=chunk)[41](index=41&type=chunk) [Profit/(Loss) for the Period](index=11&type=section&id=Profit%2F%28Loss%29%20for%20the%20Period) Profit for the period was influenced by cost of goods and services sold, staff costs, and depreciation of right-of-use assets, while benefiting from a net reversal of expected credit loss provision for loans receivable and gain on disposal of an associate Profit/Loss for the Period Major Influencing Factors | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Cost of Goods and Services Sold | 18,134 | 10,142 | | Depreciation of Right-of-Use Assets | 39 | – | | Net Exchange Loss | 2 | 3 | | Net Reversal of Expected Credit Loss Provision for Loans Receivable | (28) | – | | Gain on Disposal of an Associate | (4) | – | | Staff Costs (including Directors' Emoluments) | 3,018 | 2,845 | [Earnings/(Loss) Per Share](index=12&type=section&id=Earnings%2F%28Loss%29%20Per%20Share) As of June 30, 2025, basic and diluted earnings per share were 1.39 HK Cents, compared to a loss of 2.52 HK Cents per share in the prior year, primarily due to the period's profit Earnings/Loss Per Share | Indicator | 2025 (HK Cents) | 2024 (HK Cents) | | :--- | :--- | :--- | | Basic and Diluted EPS/(LPS) | 1.39 | (2.52) | - Weighted Average Number of Ordinary Shares: **1,538,536,566 shares**, unchanged for both periods[44](index=44&type=chunk) - Diluted Earnings/(Loss): Not presented as there were no outstanding potential ordinary shares[44](index=44&type=chunk) [Dividends](index=12&type=section&id=Dividends) For the six months ended June 30, 2025 and 2024, the company neither paid nor proposed any dividends - Dividend Policy: No dividends were paid or proposed for the six months ended June 30, 2025 and 2024[44](index=44&type=chunk)[45](index=45&type=chunk) [Trade and Other Receivables](index=13&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables increased to HK$29,325 thousand, primarily due to a significant rise in trade receivables from other ordinary activities, with the largest portion aged over 90 days Trade and Other Receivables Details | Item | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Trade Receivables from Securities Trading Business | 530 | 394 | 136 | | Trade Receivables from Other Ordinary Activities (net of provision) | 17,927 | 10,836 | 7,091 | | Deposits, Prepayments and Other Receivables (net of provision) | 10,868 | 11,428 | (560) | | **Total** | **29,325** | **22,658** | **6,667** | Trade Receivables Ageing Analysis (Other Ordinary Activities) | Ageing | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | 0-30 Days | 1,076 | 532 | | 31-60 Days | 3,404 | 750 | | 61-90 Days | 529 | 3 | | Over 90 Days | 12,918 | 9,551 | | **Total** | **17,927** | **10,836** | - Credit Period: Credit period for goods sold ranges from **30 to 90 days**[47](index=47&type=chunk) - Settlement Period for Securities Trading Receivables: **2 trading days** after the transaction date[49](index=49&type=chunk) [Amounts Due from Securities Brokerage Clients](index=14&type=section&id=Amounts%20Due%20from%20Securities%20Brokerage%20Clients) As of June 30, 2025, amounts due from securities brokerage clients were HK$201 thousand, a decrease from HK$442 thousand at year-end 2024, representing unsecured, interest-bearing deposits at 0%-0.01% per annum, repayable on demand - Amount: **HK$201 thousand** as of June 30, 2025, compared to **HK$442 thousand** as of December 31, 2024[50](index=50&type=chunk)[51](index=51&type=chunk) - Nature: Unsecured deposits, bearing interest at **0% to 0.01%** per annum, repayable on demand[50](index=50&type=chunk)[51](index=51&type=chunk) - Ageing Analysis: Directors consider ageing analysis to be of no additional value given the nature of the business[50](index=50&type=chunk)[51](index=51&type=chunk) [Loans Receivable](index=14&type=section&id=Loans%20Receivable) As of June 30, 2025, net loans receivable increased to HK$97,240 thousand from HK$91,687 thousand at year-end 2024, primarily from money lending, with all loans repayable within one year and bearing fixed annual interest rates of 8%-10% Loans Receivable Details | Item | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Gross Loans Receivable | 160,362 | 154,837 | 5,525 | | Less: Provision for Expected Credit Losses | (63,122) | (63,150) | 28 | | **Net Amount** | **97,240** | **91,687** | **5,553** | - Source: From money lending business[54](index=54&type=chunk)[56](index=56&type=chunk) - Repayment Period: All loans receivable are repayable within **one year**[54](index=54&type=chunk)[56](index=56&type=chunk) - Interest Rate and Term: Denominated in HKD, with fixed effective annual interest rates of **8% to 10%**, and a term of **one year**[55](index=55&type=chunk)[56](index=56&type=chunk) [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly increased to HK$52,233 thousand, mainly due to a rise in trade payables to cash clients in the securities trading business and for goods purchased Trade and Other Payables Details | Item | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Trade Payables from Securities Trading Business (Cash Clients) | 29,686 | 15,039 | 14,647 | | Trade Payables from Other Ordinary Activities (Purchase of Goods) | 5,574 | 18 | 5,556 | | Other Payables and Accruals | 16,773 | 15,152 | 1,621 | | Provision for Restoration Costs | 200 | 200 | 0 | | **Total** | **52,233** | **30,409** | **21,824** | Trade Payables Ageing Analysis (Purchase of Goods) | Ageing | June 30, 2025 (HK$ '000) | Dec 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | 0-30 Days | 1,396 | – | | 31-60 Days | 1,162 | – | | 61-90 Days | 2,998 | – | | Over 90 Days | 18 | 18 | | **Total** | **5,574** | **18** | - Credit Period: Credit period for goods purchased ranges from **30 to 60 days**[58](index=58&type=chunk) - Settlement Period for Securities Trading Payables: **2 days** after the transaction date[60](index=60&type=chunk) [Share Capital](index=15&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized share capital was HK$600,000 thousand, comprising 100,000,000,000 ordinary shares of HK$0.006 each, with issued and fully paid share capital of HK$9,231 thousand, and no changes during the period Share Capital Structure | Item | Number of Shares | Amount (HK$ '000) | | :--- | :--- | :--- | | Authorized Share Capital (HK$0.006 per share) | 100,000,000,000 | 600,000 | | Issued and Fully Paid Share Capital (HK$0.006 per share) | 1,538,536,566 | 9,231 | - Period-end Changes: No changes in authorized and issued share capital during the period[61](index=61&type=chunk)[82](index=82&type=chunk) [Directors' Report](index=16&type=section&id=Directors'%20Report) [Business Review](index=16&type=section&id=Business%20Review) For the six months ended June 30, 2025, group revenue grew 46.3% year-on-year to HK$25.2 million, primarily from trading computer-related components, apparel, and beauty products (75.6%), achieving a consolidated profit of HK$21.4 million, mainly due to unrealized gains on financial assets - Total Revenue: Approximately **HK$25.2 million**, a year-on-year increase of **46.3%** (2024: HK$17.2 million)[63](index=63&type=chunk)[70](index=70&type=chunk) - Revenue Composition: Trading of computer-related components, apparel, and beauty products accounted for approximately **75.6%**; interest income from money lending business approximately **23.3%** (approximately HK$5.9 million); and securities brokerage, placement, and underwriting business approximately **1.1%**[63](index=63&type=chunk)[65](index=65&type=chunk)[70](index=70&type=chunk) - Gross Profit: Approximately **HK$7.0 million**, a year-on-year decrease of **0.3%** (2024: HK$7.1 million)[64](index=64&type=chunk)[70](index=70&type=chunk) - Consolidated Profit: Approximately **HK$21.4 million**, primarily due to unrealized gains on financial assets at fair value through profit or loss of approximately **HK$20.3 million**[64](index=64&type=chunk)[70](index=70&type=chunk) [Outlook and Prospects](index=16&type=section&id=Outlook%20and%20Prospects) Facing an unpredictable business environment, the Group is re-evaluating and repositioning its business strategy, planning to allocate more resources to asset management, especially after obtaining a virtual asset trading platform license, and will continue to seek investment opportunities to diversify revenue - Strategic Adjustment: Evaluating different business segments and repositioning strategies towards those with more optimistic prospects[66](index=66&type=chunk)[71](index=71&type=chunk) - New Business Expansion: Obtained SFC Type 4 and Type 9 licenses, enabling operation of a virtual asset trading platform[66](index=66&type=chunk)[71](index=71&type=chunk) - Future Focus: Expected to allocate more resources to develop the asset management business[66](index=66&type=chunk)[71](index=71&type=chunk) - Growth Strategy: Continuously identifying potential investments and business opportunities to broaden revenue streams and develop existing businesses[67](index=67&type=chunk)[71](index=71&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=17&type=section&id=Overview) For the six months ended June 30, 2025, group revenue grew 46.3% to HK$25.2 million, while gross profit slightly decreased to HK$7.0 million, with trading of computer-related components, apparel, and beauty products remaining the primary revenue source, complemented by the financial sector - Revenue: Approximately **HK$25.2 million**, a year-on-year increase of **46.3%**[73](index=73&type=chunk)[79](index=79&type=chunk) - Gross Profit: Approximately **HK$7.0 million**, compared to HK$7.1 million in the prior period[73](index=73&type=chunk)[79](index=79&type=chunk) - Main Business Contribution: Trading of computer-related components, apparel, and beauty products continued to contribute significant revenue, with an optimistic outlook for this segment[74](index=74&type=chunk)[79](index=79&type=chunk) - Other Revenue Sources: Sales and marketing of electronic devices and related products, and the financial sector (securities brokerage, placement and underwriting, and money lending businesses)[74](index=74&type=chunk)[79](index=79&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's current ratio decreased from 7.2 to 5.2, mainly due to increased trade and other payables, with cash on hand at HK$14.4 million, total assets at HK$278.7 million, and shareholders' equity at HK$219.3 million - Current Ratio: Decreased from **7.2** as of December 31, 2024, to **5.2** as of June 30, 2025[75](index=75&type=chunk)[80](index=80&type=chunk) - Reason for Decrease: Primarily due to an increase in trade and other payables[75](index=75&type=chunk)[80](index=80&type=chunk) Liquidity and Financial Resources Key Data | Indicator | June 30, 2025 (HK$ Million) | Dec 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Cash on Hand | 14.4 | 14.8 | | Current Assets | 278.5 | 231.1 | | Total Assets | 278.7 | 231.5 | | Shareholders' Equity | 219.3 | 197.9 | [Gearing Ratio](index=17&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was approximately 2.3%, a significant increase from 0.3% at year-end 2024, with financing primarily from internal cash flow, shareholders' equity, and external bank loans - Gearing Ratio: Approximately **2.3%** as of June 30, 2025 (December 31, 2024: approximately **0.3%**)[76](index=76&type=chunk)[81](index=81&type=chunk) - Funding Sources: Primarily through internally generated cash flow, shareholders' equity, and external bank loans and borrowings[76](index=76&type=chunk)[81](index=81&type=chunk) [Capital Structure](index=17&type=section&id=Capital%20Structure) As of June 30, 2025, the company's authorized share capital was HK$600 million, divided into 100 billion shares of HK$0.006 each, with no changes to authorized share capital during the period - Authorized Share Capital: **HK$600 million**, divided into **100,000,000,000 shares** of **HK$0.006** each[77](index=77&type=chunk)[82](index=82&type=chunk) - Period-end Changes: No changes in authorized share capital during the period[77](index=77&type=chunk)[82](index=82&type=chunk) [Exchange Rates](index=17&type=section&id=Exchange%20Rates) The Group's sales are mostly denominated in USD, while expenses are primarily in USD, RMB, and HKD; currently, there is no hedging policy, but management continuously assesses foreign exchange risk to minimize volatility - Sales Currency: Predominantly denominated in **USD**[78](index=78&type=chunk)[83](index=83&type=chunk) - Expense Currency: Predominantly denominated in **USD, RMB, and HKD**[78](index=78&type=chunk)[83](index=83&type=chunk) - Hedging Policy: Currently no hedging policy, but management continuously assesses foreign exchange risk to minimize its impact[78](index=78&type=chunk)[83](index=83&type=chunk) [Material Investments](index=18&type=section&id=Material%20Investments) As of June 30, 2025, the total market value of financial assets at fair value through profit or loss was approximately HK$104.1 million, a significant increase from HK$81.0 million at year-end 2024, with HK$2.3 million in realized gains and HK$20.3 million in unrealized gains recognized during the period - Financial Assets Market Value: Approximately **HK$104.1 million** as of June 30, 2025 (December 31, 2024: HK$81.0 million)[84](index=84&type=chunk)[86](index=86&type=chunk) - Realized Gains: Approximately **HK$2.3 million** in the first half of 2025 (first half of 2024: loss of HK$8.8 million)[85](index=85&type=chunk)[86](index=86&type=chunk) - Unrealized Gains: Approximately **HK$20.3 million** in the first half of 2025 (first half of 2024: loss of HK$30.7 million)[85](index=85&type=chunk)[86](index=86&type=chunk) Major Financial Assets at Fair Value Through Profit or Loss (June 30, 2025) | Stock Name | Stock Code | Market Value (HK$ '000) | % of Group's Total Assets | (Loss)/Gain (HK$ '000) | Investment Strategy | | :--- | :--- | :--- | :--- | :--- | :--- | | China Investment and Finance Group Limited | 1226 | 28,092 | 10.09% | 3,184 | Passive | | CaiXun Media Group Limited | 205 | 12,424 | 4.46% | 7,454 | Passive | | Juntai Holdings Limited | 630 | 10,478 | 3.76% | 5,821 | Passive | | Wellong Holdings Limited | 8021 | 6,961 | 2.50% | (3,632) | Passive | | Rich Glory Holdings Limited | 8269 | 7,557 | 2.71% | 4,198 | Passive | | China Environmental Energy Investment Limited | 986 | 5,567 | 2.00% | 2,073 | Passive | | **Subtotal (Top 6)** | | **71,079** | **25.52%** | **19,098** | | | Other 23 Listed Equity Securities | | 33,023 | 11.83% | 1,155 | Passive | | **Total** | | **104,102** | **37.35%** | **20,253** | | [Material Acquisitions or Disposals](index=19&type=section&id=Material%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries and associates - Material Transactions: No material acquisitions or disposals of subsidiaries and associates during the period[96](index=96&type=chunk)[100](index=100&type=chunk) [Employees](index=19&type=section&id=Employees) The Group's remuneration policy is performance-based and market-referenced, with the Board having discretion to grant share options to incentivize employee contributions - Remuneration Policy: Based on employee performance and market conditions[97](index=97&type=chunk)[101](index=101&type=chunk) - Incentive Mechanism: The Board may, at its discretion, grant share options to executive directors and employees[97](index=97&type=chunk)[101](index=101&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests in Shares](index=20&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Shares) As of June 30, 2025, no directors or chief executives held any interests or short positions in shares, underlying shares, or debentures requiring disclosure under the SFO or Listing Rules - Directors' and Chief Executive's Interests: As of June 30, 2025, no directors or chief executives held any disclosable interests or short positions in shares, underlying shares, or debentures[103](index=103&type=chunk)[107](index=107&type=chunk) [Share Options](index=20&type=section&id=Share%20Options) On June 24, 2025, the company adopted a new 2025 Share Option Scheme and terminated the 2021 scheme; as of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed during the period, and none remained outstanding - Share Option Scheme: The 2025 Share Option Scheme was adopted on **June 24, 2025**, and the 2021 Share Option Scheme was terminated[104](index=104&type=chunk)[108](index=108&type=chunk) - Period Activities: As of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed during the period[105](index=105&type=chunk)[108](index=108&type=chunk) - Outstanding Share Options: No outstanding share options as of **January 1, 2025**, and **June 30, 2025**[105](index=105&type=chunk)[108](index=108&type=chunk) - Number of Share Options Available for Grant: **149,293,656** as of January 1, 2025, and **153,853,656** as of June 30, 2025[105](index=105&type=chunk)[108](index=108&type=chunk) [Substantial Shareholders' Interests in Shares](index=21&type=section&id=Substantial%20Shareholders'%20Interests%20in%20Shares) As of June 30, 2025, the Board was unaware of any persons, other than directors and chief executives, holding 5% or more interests or short positions in shares requiring disclosure under the SFO - Substantial Shareholders' Interests: As of June 30, 2025, no persons other than directors and chief executives held 5% or more interests or short positions in shares requiring disclosure[110](index=110&type=chunk)[115](index=115&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Audit Committee, established in March 2000 and composed of three independent non-executive directors, facilitates communication between the Board and auditors and has reviewed the unaudited financial statements for the period - Establishment Date: **March 2000**[111](index=111&type=chunk)[116](index=116&type=chunk) - Membership: Comprises three independent non-executive directors: Mr. Man Yuen, Mr. Ma Jianling, and Ms. Wong Chi[111](index=111&type=chunk)[116](index=116&type=chunk) - Responsibilities: Provides a key link between the Board and the auditors, and has reviewed the unaudited financial statements for the period[111](index=111&type=chunk)[116](index=116&type=chunk) [Corporate Governance](index=21&type=section&id=Corporate%20Governance) The company is committed to high standards of corporate governance, emphasizing Board quality, robust internal controls, transparency, independence, and accountability to shareholders, and complied with the principles of Appendix C1 of the Listing Rules during the period - Corporate Governance Commitment: Committed to high standards of good corporate governance practices and procedures[112](index=112&type=chunk)[117](index=117&type=chunk) - Core Principles: Emphasizes a quality Board, sound internal controls, transparency, independence, and accountability to all shareholders[112](index=112&type=chunk)[117](index=117&type=chunk) - Compliance: For the six months ended June 30, 2025, the Group has applied the principles set out in Appendix C1 of the Listing Rules, "Corporate Governance Code and Corporate Governance Report"[112](index=112&type=chunk)[117](index=117&type=chunk) [Events After the Reporting Period](index=21&type=section&id=Events%20After%20the%20Reporting%20Period) As of the report date, no significant events occurred after the reporting period - Post-Reporting Period Events: No significant events occurred up to the date of this report[113](index=113&type=chunk)[118](index=118&type=chunk) [Standard of Conduct for Directors' Securities Transactions](index=21&type=section&id=Standard%20of%20Conduct%20for%20Directors'%20Securities%20Transactions) The company adopted the "Standard Code" for directors' securities transactions, and all directors complied with it for the six months ended June 30, 2025 - Code of Conduct: The company has adopted the "Model Code for Securities Transactions by Directors of Listed Issuers" as set out in Appendix C3 of the Listing Rules[114](index=114&type=chunk)[119](index=119&type=chunk) - Compliance: All directors complied with the required standards set out in the Model Code during the period[114](index=114&type=chunk)[119](index=119&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Securities Transactions: Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[115](index=115&type=chunk)[120](index=120&type=chunk)

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The group achieved significant revenue and profit growth for the six months ended June 30, 2025, with basic earnings per share increasing substantially Unaudited Results for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 3,170,600 | 1,841,000 | +72.2% | | Gross Profit | 118,349 | 69,605 | +70.0% | | Profit for the Period | 51,040 | 6,974 | +631.9% | | Profit Attributable to Owners of the Parent | 51,040 | 6,974 | +631.9% | | Basic Earnings Per Share Attributable to Owners of the Parent - Profit for the Period | RMB 2.43 cents | RMB 0.33 cents | +636.4% | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the group's financial performance and position, including the income statement, comprehensive income, and financial position [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The group achieved significant revenue and gross profit growth during the review period, successfully turning a loss into a substantial profit, primarily due to effective cost of sales control and a significant increase in revenue Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 3,170,600 | 1,841,000 | | Cost of Sales | (3,052,251) | (1,771,395) | | Gross Profit | 118,349 | 69,605 | | Other Income and Gains | 42,609 | 32,035 | | Selling and Distribution Expenses | (7,020) | (5,813) | | Administrative Expenses | (91,829) | (96,231) | | Profit / (Loss) Before Tax | 53,644 | (1,657) | | Income Tax (Expense) / Credit | (2,604) | 8,631 | | Profit for the Period | 51,040 | 6,974 | Earnings Per Share Attributable to Owners of the Parent | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic - Profit for the Period | RMB 2.43 cents | RMB 0.33 cents | | Diluted - Profit for the Period | RMB 2.43 cents | RMB 0.33 cents | [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The group's total comprehensive income significantly increased, driven by higher profit for the period and a favorable shift in exchange differences from loss to gain Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 51,040 | 6,974 | | Exchange Differences on Translation of Financial Statements | 7,201 | (1,226) | | Total Comprehensive Income, Net of Tax | 58,241 | 5,748 | | Attributable to Owners of the Parent | 58,241 | 5,748 | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) The group's asset and liability structure remains robust, with increases in both current assets and net current assets, and a steady rise in total equity, reflecting a healthy financial position Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 1,035,366 | 1,021,849 | | Total Current Assets | 2,910,819 | 2,507,979 | | Total Current Liabilities | 2,810,540 | 2,445,762 | | Net Current Assets | 100,279 | 62,217 | | Total Assets Less Current Liabilities | 1,135,645 | 1,084,066 | | Total Non-current Liabilities | 6,775 | 13,437 | | Net Assets | 1,128,870 | 1,070,629 | | Total Equity | 1,128,870 | 1,070,629 | [Notes to the Condensed Consolidated Financial Information](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed explanations and disclosures regarding the group's accounting policies, financial performance, and position [Basis of Preparation](index=7&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[9](index=9&type=chunk) [Changes in Accounting Policies of the Group](index=7&type=section&id=2.%20%E6%9C%AC%E9%9B%86%E5%9C%98%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E4%B9%8B%E8%AE%8A%E5%8B%95) The group adopted several revised Hong Kong Financial Reporting Standards, including amendments related to sale and leaseback, liability classification, and supplier finance arrangements, none of which had a material impact on the group's financial position or performance - The amendments to HKFRS 16 (Lease Liabilities in a Sale and Leaseback) had no impact on the group's financial position or performance[10](index=10&type=chunk) - The amendments to HKAS 1 (Classification of Liabilities as Current or Non-current) had no impact on the group's financial position or performance[11](index=11&type=chunk) - The amendments to HKAS 7 and HKFRS 7 (Supplier Finance Arrangements) had no impact on the group's financial statements[11](index=11&type=chunk) [Segment Information](index=8&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The group operates as a single business unit, focusing on display products, primarily engaged in the processing, manufacturing, and sale of LCD module products. All significant operating assets are located in Mainland China, and revenue primarily originates from Mainland China customers and related companies - The group operates as a single business unit based on its products, specifically display products, primarily engaged in the processing, manufacturing, and sale of LCD module products[12](index=12&type=chunk) Revenue from External Customers (by Region) | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 2,911,394 | 1,628,833 | | Hong Kong | 259,206 | 212,167 | | Total | 3,170,600 | 1,841,000 | - All of the group's significant operating assets are located in Mainland China[16](index=16&type=chunk) - For the six months ended June 30, 2025, approximately **RMB 1,579,049,000** in revenue was derived from sales to related companies[17](index=17&type=chunk) [Revenue, Other Income and Gains](index=10&type=section&id=4.%20%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) The group's revenue primarily stems from the sale of industrial products, specifically LCD modules, with processing and manufacturing services contributing a smaller portion. Other income and gains mainly comprise bank interest income and government subsidies, while exchange losses negatively impacted overall gains Disaggregation of Revenue from Contracts with Customers | Type of Goods and Services | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sale of Industrial Products | 3,147,354 | 1,818,142 | | Processing and Manufacturing Services | 23,246 | 22,858 | | Total Revenue from Contracts with Customers | 3,170,600 | 1,841,000 | Analysis of Other Income and Gains | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Interest Income | 21,462 | 17,785 | | Subsidy Income | 13,218 | 12,391 | | Gain on Disposal of Raw Materials, Samples and Scraps | 4,046 | 1,042 | | Others | 5,151 | 1,418 | | Exchange (Loss) / Gain | (1,268) | 833 | | Total Other Income and Gains | 42,609 | 32,035 | - Subsidy income refers to various government grants received by the group in Mainland China, which management believes have no unfulfilled conditions or contingencies attached[20](index=20&type=chunk) [Profit / (Loss) Before Tax](index=12&type=section&id=5.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) The group's profit before tax significantly improved, primarily due to increased cost of inventories sold, higher depreciation and amortization expenses, and growth in R&D costs and employee benefit expenses, while a reversal of impairment for trade receivables positively impacted profit Key Factors Affecting Profit / (Loss) Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Inventories Sold | 3,052,251 | 1,771,395 | | Depreciation of Property, Plant and Equipment | 55,200 | 44,543 | | Amortization of Intangible Assets | 1,388 | 1,320 | | Research and Development Costs | 72,535 | 64,236 | | Employee Benefit Expenses (including Directors' Emoluments) | 239,555 | 184,012 | | Net Exchange Loss / (Gain) | 1,268 | (833) | | Trade Receivables (Reversal of Impairment) / Impairment | (718) | 78 | | Reversal of Write-down of Inventories to Net Realizable Value | 3,847 | 1,863 | - Research and development costs are included in "Administrative Expenses" in the interim condensed consolidated statement of profit or loss[22](index=22&type=chunk) [Finance Costs](index=13&type=section&id=6.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) The group's finance costs significantly increased, primarily due to a substantial rise in interest on non-recourse bill discounting and trade receivables factoring Analysis of Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on Non-recourse Bill Discounting and Trade Receivables Factoring | 8,199 | 51 | [Income Tax Expense / (Credit)](index=13&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E6%94%AF%E5%87%BA%EF%BC%8F%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89) The group's income tax shifted from a credit last year to an expense this period, mainly influenced by increased current tax expense in Mainland China and prior period adjustments, while deferred tax transitioned from an expense to a credit - Hong Kong profits tax is provided at a rate of **16.5%** on the estimated assessable profits arising in Hong Kong during the period[25](index=25&type=chunk) Analysis of Income Tax Expense / (Credit) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current - Mainland China Expense / (Credit) for the Period | 10,423 | (997) | | Adjustments for Current Tax in Prior Periods | 9,342 | (7,890) | | Deferred | (17,161) | 256 | | Total Tax Expense / (Credit) for the Period | 2,604 | (8,631) | [Dividends](index=13&type=section&id=8.%20%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Directors do not recommend the payment of any dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[27](index=27&type=chunk) [Earnings Per Share Attributable to Owners of the Parent](index=14&type=section&id=9.%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E8%80%85%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) The group's basic earnings per share significantly increased, reflecting a substantial rise in profit attributable to owners of the parent, with no potentially dilutive ordinary shares issued during the period Basic Earnings Per Share Attributable to Owners of the Parent | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period | RMB 2.43 cents | RMB 0.33 cents | - The basic earnings per share amount is calculated based on the profit for the period attributable to owners of the parent of **RMB 51,040,000** and the weighted average number of **2,096,908,406** ordinary shares of the company in issue during the period, after deducting shares held for the company's share award scheme[28](index=28&type=chunk) - The company had no potentially dilutive ordinary shares in issue for the six months ended June 30, 2025[29](index=29&type=chunk) [Trade and Bills Receivables](index=14&type=section&id=10.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) The group's total trade and bills receivables significantly increased, primarily concentrated within one month of maturity, with credit terms generally ranging from 30 to 90 days, and no collateral held Trade and Bills Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 1,532,117 | 1,051,329 | | Bills Receivables | 5,276 | 9,076 | | Impairment | (194) | (841) | | Total | 1,537,199 | 1,059,564 | Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 1,167,366 | 1,007,649 | | 1 to 2 months | 363,111 | 50,544 | | 2 to 3 months | 6,722 | 1,371 | | Total | 1,537,199 | 1,059,564 | - The group's terms of trade with its customers are primarily on an open account basis, with credit periods generally ranging from **30 to 90 days**, and no collateral or other credit enhancement measures are held for trade receivables balances[30](index=30&type=chunk) [Trade Payables](index=15&type=section&id=11.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) The group's total trade payables significantly increased, primarily concentrated within 30 days of maturity, and generally settled within terms of 30 to 150 days Trade Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 2,288,303 | 1,836,106 | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 1,412,961 | 1,042,748 | | 31 to 60 days | 388,473 | 317,271 | | 61 to 90 days | 299,543 | 345,728 | | Over 90 days | 187,326 | 130,359 | | Total | 2,288,303 | 1,836,106 | - Trade payables are interest-free and generally settled within terms of **30 to 150 days**[32](index=32&type=chunk) [Share Capital](index=16&type=section&id=12.%20%E8%82%A1%E6%9C%AC) The company's share capital remained unchanged during the review period, with a total of 2,114,307,929 ordinary shares in issue, including shares held for the share award scheme Share Capital Structure | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Authorized: 4,000,000,000 ordinary shares of HKD 0.10 each | 400,000 | 400,000 | | Issued and fully paid: 2,114,307,929 ordinary shares | 211,431 | 211,431 | | Equivalent to RMB thousands | 172,134 | 172,134 | - There was no change in the company's share capital during the period[34](index=34&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an overview of the industry, the group's business performance, and future outlook, highlighting key operational and market trends [Industry Review](index=17&type=section&id=%E8%A1%8C%E6%A5%AD%E5%9B%9E%E9%A1%A7) In the first half of 2025, the global consumer electronics industry showed a structural recovery, with smartphone shipments increasing by 1% year-on-year and tablet shipments by 8.5%. However, demand in the low-end market faced pressure, and the Chinese market performed below expectations. The panel industry underwent adjustments, with small and medium-sized display panel shipments decreasing by 10.0% quarter-on-quarter, but A-Si LCD panels maintained stable demand due to their cost advantage - Global smartphone shipments increased by **1%** year-on-year in Q2 2025, reaching **295.2 million units**[35](index=35&type=chunk) - Global tablet shipments increased by **8.5%** year-on-year in Q1 2025, reaching **36.8 million units**[35](index=35&type=chunk) - Small and medium-sized display panel shipments are expected to decrease by **10.0%** quarter-on-quarter and **6.0%** year-on-year in Q2 2025[36](index=36&type=chunk) - A-Si LCD panels maintain stable demand in the entry-level market due to their significant cost advantage[36](index=36&type=chunk) [Business Review](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The group achieved significant growth in sales volume and turnover during the review period, benefiting from scaled production capacity, optimized product structure, and the integrated panel module model with TCL CSOT. Sales of mobile phone modules, tablet modules, and commercial display products all substantially increased, leading to significantly enhanced profitability - During the review period, the group achieved total sales volume of **33.7 million units**, a year-on-year increase of **70.0%**, driving total turnover to **RMB 3,170.6 million**, a year-on-year increase of **72.2%**[37](index=37&type=chunk) - Mobile phone module sales volume increased by **82.3%** to **24.9 million units**, with related turnover increasing by **71.2%** year-on-year to **RMB 1,208.3 million**[37](index=37&type=chunk) - Tablet module sales volume increased by **91.1%** to **4.3 million units**, with related turnover increasing by **71.3%** year-on-year to **RMB 742.7 million**[38](index=38&type=chunk) - Commercial display product sales volume increased by over **2.7 times** year-on-year to **1.7 million units**, with related turnover reaching **RMB 747.0 million**[38](index=38&type=chunk) - The group recorded a gross profit of **RMB 118.3 million**, a year-on-year increase of **70.0%**, with a gross profit margin of **3.7%**. Profit attributable to owners of the parent reached **RMB 51.0 million**, a year-on-year increase of **631.9%**[38](index=38&type=chunk) Sales Volume by Product Category and Year-on-Year Change | Product Sold | 2025 (thousands of units) | % | 2024 (thousands of units) | % | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Mobile Phone Modules | 24,853.6 | 73.8% | 13,631.5 | 68.9% | +82.3% | | Tablet Modules | 4,327.4 | 12.9% | 2,264.2 | 11.4% | +91.1% | | Commercial Display Products | 1,688.4 | 5.0% | 457.7 | 2.3% | +268.9% | | Components and Other Products | 1,600.0 | 4.8% | 1,668.6 | 8.4% | (4.1%) | | Processing and Manufacturing Services | 1,187.5 | 3.5% | 1,780.4 | 9.0% | (33.3%) | | Total | 33,656.9 | 100.0% | 19,802.4 | 100.0% | +70.0% | Turnover by Product Category and Year-on-Year Change | Product Sold | 2025 (RMB millions) | % | 2024 (RMB millions) | % | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Mobile Phone Modules | 1,208.3 | 38.1% | 705.8 | 38.3% | +71.2% | | Tablet Modules | 742.7 | 23.4% | 433.5 | 23.6% | +71.3% | | Commercial Display Products | 747.0 | 23.6% | 431.6 | 23.5% | +73.1% | | Components and Other Products | 449.4 | 14.2% | 247.3 | 13.4% | +81.7% | | Processing and Manufacturing Services | 23.2 | 0.7% | 22.8 | 1.2% | +1.8% | | Total | 3,170.6 | 100.0% | 1,841.0 | 100.0% | +72.2% | Turnover by Region and Year-on-Year Change | Region | 2025 (RMB millions) | % | 2024 (RMB millions) | % | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 2,911.4 | 91.8% | 1,628.8 | 88.5% | +78.7% | | Hong Kong | 259.2 | 8.2% | 212.2 | 11.5% | +22.2% | | Total | 3,170.6 | 100.0% | 1,841.0 | 100.0% | +72.2% | [Outlook](index=20&type=section&id=%E5%B1%95%E6%9C%9B) Facing a slowdown in global economic growth and trade tensions, the group anticipates single-digit growth in the smartphone market and stable demand for A-Si panels. The group will continue to leverage its integrated panel module advantage with TCL CSOT to develop customized products, expecting stable to improving orders in the second half of the year, and is committed to enhancing profitability and creating long-term value - The International Monetary Fund (IMF) forecasts global economic growth to slow to **2.8%** in 2025, continuing to impact the consumer electronics industry[43](index=43&type=chunk) - The smartphone market is expected to maintain single-digit growth in the future, with stable demand for A-Si panels[43](index=43&type=chunk) - The group will continue to leverage its integrated panel module advantage with TCL CSOT t9 to jointly develop more competitive customized products and solutions[43](index=43&type=chunk) - Looking ahead to the second half of 2025, with the continuous expansion of product categories and gradual increase in market share, the group's orders are expected to be stable to improving[43](index=43&type=chunk) [Financial Review](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section details the group's liquidity, financial resources, asset pledges, capital commitments, foreign exchange risk management, and investment activities [Liquidity and Financial Resources](index=21&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) The group maintains ample liquidity, with cash and cash equivalents and time deposits totaling RMB 122.9 million, and financial deposits of RMB 909.3 million. There were no interest-bearing bank loans or other borrowings during the period, resulting in a zero gearing ratio and a robust financial position - As at June 30, 2025, the group's cash and cash equivalents and time deposits balance was **RMB 122.9 million**[44](index=44&type=chunk) - As at June 30, 2025, the group's financial deposits balance was **RMB 909.3 million**, placed with TCL Technology[44](index=44&type=chunk) - As at June 30, 2025, the group had no interest-bearing bank loans or other borrowings[45](index=45&type=chunk) - Total equity attributable to owners of the parent was **RMB 1,128.9 million**, with a gearing ratio of **zero**[45](index=45&type=chunk) [Pledged Assets](index=21&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As at June 30, 2025, the group had no pledged assets, consistent with the situation at the end of the previous year - As at June 30, 2025, the group had no pledged assets (December 31, 2024: nil)[46](index=46&type=chunk) [Capital Commitments and Contingent Liabilities](index=22&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E8%AB%BE%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The group's contracted but unprovided capital commitments for plant and equipment amounted to RMB 169,010 thousands, with no significant contingent liabilities Contracted but Unprovided Capital Commitments | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Plant and Equipment | 169,010 | 53,318 | - As at June 30, 2025, the group had no significant contingent liabilities[47](index=47&type=chunk) [Foreign Currency Exchange Risk](index=22&type=section&id=%E5%A4%96%E5%B9%A3%E5%8C%AF%E5%85%8C%E9%A2%A8%E9%9A%AA) The group faces foreign exchange transaction and currency translation risks, aiming for natural hedging by balancing foreign currency-denominated trade, assets, and liabilities, and uses forward foreign exchange contracts to mitigate risk, without engaging in high-risk derivative transactions - The group strives to balance foreign currency-denominated trade, assets, and liabilities to achieve a natural hedging effect[48](index=48&type=chunk) - The group also uses forward foreign exchange contracts to reduce foreign exchange risk and did not engage in any high-risk derivative transactions during the review period[48](index=48&type=chunk) [Litigation](index=22&type=section&id=%E6%9C%AA%E6%B1%BA%E8%A8%B4%E8%A8%9F) During the review period, the group was not involved in any material litigation - During the review period, the group was not involved in any material litigation[49](index=49&type=chunk) [Material Investments Held](index=22&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As at June 30, 2025, the group held no material investments - As at June 30, 2025, the group held no material investments[50](index=50&type=chunk) [Material Acquisitions and Disposals](index=23&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) The group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period - The group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period[52](index=52&type=chunk) [Future Plans for Material Investments or Capital Assets](index=23&type=section&id=%E6%9C%89%E9%97%9C%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%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As at June 30, 2025, the group had no specific plans for material investments or capital assets for the second half of 2025 - As at June 30, 2025, the group had no specific plans for material investments or capital assets for the second half of 2025[53](index=53&type=chunk) [Other Information](index=23&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers employee and remuneration policies, interim dividends, securities transactions, corporate governance, and board composition [Employees and Remuneration Policy](index=23&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E9%85%AC%E9%87%91%E6%94%BF%E7%AD%96) The group has 3,731 employees, with total staff costs of approximately RMB 239.6 million. The company offers competitive remuneration, bonuses, and benefits, along with continuous training and development programs, linking remuneration policy to market conditions and employee performance, and potentially incentivizing staff through share option and share award schemes - As at June 30, 2025, the group had **3,731** employees, with total staff costs of approximately **RMB 239.6 million**[54](index=54&type=chunk) - The group aims to provide employees with fair, legal, and competitive remuneration, bonuses, and benefits by offering compensation packages regularly updated in conjunction with regional GDP growth and the latest laws and regulations[54](index=54&type=chunk) - The company may grant share options and share awards to relevant grantees (including group employees) under the share option scheme and share award scheme, respectively[54](index=54&type=chunk) [Interim Dividend](index=23&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[55](index=55&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=23&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) Neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities during the review period - Neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities during the review period[56](index=56&type=chunk) [Compliance with Corporate Governance Code](index=24&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the review period, with the exception that the company secretary is not an employee of the company. A contact person has been appointed to ensure information flow, and the company believes the company secretary's expertise benefits compliance - During the review period, the company complied with the code provisions set out in Part 2 of the Corporate Governance Code in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, except that Ms. CHEUNG Po Man, the company secretary, is not an employee of the company[57](index=57&type=chunk) - The company has appointed Ms. Clara SIU, Deputy Director of the company's Finance and Investor Relations Department, as Ms. CHEUNG's contact person to ensure that information regarding the group's performance, financial position, and other key developments is promptly communicated[57](index=57&type=chunk) [Standard Code for Securities Transactions by Directors](index=24&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%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Board has adopted a code of conduct no less stringent than the Standard Code under the Listing Rules, and all directors confirmed compliance with the relevant standards during the review period - The Board has adopted a code of conduct for directors' securities transactions, the terms of which are no less stringent than the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[58](index=58&type=chunk) - Following specific enquiries with all Directors, all Directors confirmed that they had complied with the standards set out in the Model Code during the review period[58](index=58&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising four independent non-executive directors, reviewed the group's interim condensed consolidated financial statements and confirmed their compliance with applicable accounting standards, Listing Rules, and legal requirements, with adequate disclosures - The Audit Committee currently comprises four members: Ms. XU Huimin (Chairperson), Mr. LI Yang, Mr. XU Yan, and Ms. YANG Qiulin, all of whom are independent non-executive directors[59](index=59&type=chunk) - The Audit Committee has reviewed the group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that the preparation of such financial information complies with applicable accounting standards, the requirements of the Listing Rules, and any other applicable legal requirements, and that adequate disclosures have been made[59](index=59&type=chunk) [Board of Directors](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of the date of this announcement, the Board of Directors comprises Mr. LIAO Qian, Chairman and Non-executive Director, five Executive Directors, and four Independent Non-executive Directors - As of the date of this announcement, the Board of Directors includes Mr. LIAO Qian, Chairman and Non-executive Director; Mr. ZHANG Feng, Mr. XI Wenbo, Mr. WANG Xinfu, and Mr. ZHANG Caili as Executive Directors; and Ms. XU Huimin, Mr. LI Yang, Mr. XU Yan, and Ms. YANG Qiulin as Independent Non-executive Directors[60](index=60&type=chunk)

Financial Performance - For the six months ended June 30, 2025, the company's revenue was RMB 374.5 million, a decrease of 9.3% compared to RMB 413.1 million in the same period of 2024[4]. - The gross profit for the same period was RMB 209.9 million, reflecting a significant decline of 28.3% from RMB 292.9 million in 2024, resulting in a gross margin of 56.0%[4]. - The adjusted net loss for the six months was RMB 372.0 million, which is a 97.4% increase compared to RMB 188.5 million in the previous year[4]. - The company reported an operating loss of RMB 337.1 million in the first half of 2025, compared to an operating loss of RMB 186.5 million in 2024, reflecting a significant increase in losses[27]. - The company reported a loss of RMB 382.1 million for the six months ended June 30, 2025, compared to a loss of RMB 241.5 million for the same period in 2024[51]. - The company’s net loss attributable to equity shareholders for the period was RMB 379,727,000, compared to RMB 240,801,000 in the same period of 2024, reflecting a 57.7% increase in losses[83]. - The company recorded a pre-tax loss of RMB 365,576,000 for the six months ended June 30, 2025, compared to a pre-tax loss of RMB 215,850,000 in the same period in 2024[81]. Customer Metrics - The number of core enterprise customers increased by 25.4% to 1,206, while the total number of core enterprises rose by 19.0% to 2,565[5]. - The customer retention rate improved to 99%, up from 96% in the previous year[5]. - In the first half of 2025, the company added 244 new core enterprise and financial institution clients, bringing the total to 1,352, a 22% increase from 2024[11]. - The overall customer retention rate improved from 96% in 2024 to 99% in 2025, reflecting enhanced customer satisfaction[11]. Supply Chain Technology Solutions - The total supply chain assets processed by the company's technology solutions reached RMB 203.6 billion, with a notable increase in multi-level circulation cloud assets by 54.4% to RMB 133.2 billion[10]. - The company reported a total of RMB 198.7 million in supply chain financial technology solutions, marking a 27.4% increase from RMB 156.0 million in 2024[8]. - The multi-level circulation cloud processed a total of RMB 133.2 billion in supply chain assets, representing a 54.4% year-on-year growth and accounting for 65% of the company's overall business scale[17]. - The company launched innovative solutions such as Digital Trade Token (DTT) and Asset Backed Token (ABT) to enhance global trade finance and address cross-border payment challenges[12]. - The company actively participated in international regulatory technology cooperation projects, exploring tokenization technology applications in international trade finance[13]. Financial Position - The cash and cash equivalents, along with restricted cash, totaled RMB 5,378.3 million, an increase of RMB 305.9 million from the end of 2024[10]. - As of June 30, 2025, the company had cash and cash equivalents of RMB 5,157.9 million, an increase of RMB 259.5 million from RMB 4,898.4 million as of December 31, 2024[59]. - The company had an outstanding balance of RMB 20.0 million in borrowings as of June 30, 2025, down from RMB 30.0 million as of December 31, 2024, with interest rates ranging from 2.35% to 2.45%[62]. - The company reported a net asset value of RMB 7,399,552,000 as of June 30, 2025, down from RMB 7,833,595,000 as of December 31, 2024, indicating a decrease of about 5.5%[85]. - The company's total liabilities increased to RMB 1,032,106,000 as of June 30, 2025, compared to RMB 760,309,000 as of December 31, 2024, reflecting a rise of approximately 35.7%[85]. Operational Efficiency - Research and development expenses decreased by 19.8% from RMB 177.7 million to RMB 142.5 million, mainly due to a reduction in salaries and benefits for R&D employees[33]. - Sales and marketing expenses increased by 10.7% from RMB 66.2 million to RMB 73.3 million, attributed to increased spending on overseas cross-border business development[34]. - General and administrative expenses decreased by 18.9% from RMB 113.7 million to RMB 92.2 million, primarily due to a reduction in salaries and benefits for administrative staff[35]. - The company adopted more flexible pricing and sales strategies in response to changing macroeconomic conditions and market competition[32]. Future Outlook and Strategy - The company is focusing on core business areas and has implemented strategic measures to enhance global trade financing capabilities, particularly in the cross-border cloud segment[9]. - The implementation of new regulations in June 2025 is expected to accelerate industry consolidation and provide strategic growth opportunities for leading supply chain financial technology companies[9]. - The company plans to accelerate the innovation and application of digital asset business, particularly in supply chain finance, in collaboration with licensed institutions in Singapore[22]. - The company aims to enhance shareholder returns and achieve sustainable growth through strategic mergers and acquisitions and the integration of AI and compliant stablecoins[25]. - The company is exploring partnerships for the issuance of compliant stablecoins to facilitate the tokenization of traditional trade finance[22]. Employee Metrics - The company had a total of 679 employees as of June 30, 2025, with 347 in R&D, 134 in sales and marketing, and 198 in general administration[71]. - The company’s employee costs for the six months ended June 30, 2025, were RMB 165,218,000, down from RMB 212,356,000 in 2024, reflecting a reduction of approximately 22.2%[99]. Dividends and Shareholder Returns - The company did not declare an interim dividend for the six months ended June 30, 2025[80]. - The company declared a special final dividend of HKD 0.03 per share, totaling RMB 58,456,000, which was paid on July 17, 2025[108]. - The company repurchased a total of 1,046,000 B shares at a total cost of RMB 1,282,290 during the reporting period[77]. Impairment and Credit Risk - Impairment losses increased from RMB 162.4 million to RMB 270.3 million, with significant losses related to credit-impaired financial assets[37]. - The credit risk related to bridge supply chain assets increased significantly, with an outstanding balance of RMB 2,053.9 million as of June 30, 2025[56][57]. - The company is taking measures to mitigate credit risk associated with bridge supply chain assets, including renegotiating repayment schedules and enhancing credit enhancement measures[39]. - The average time required for bridge processes has increased due to cautious investor behavior and adverse market conditions affecting real estate developers[39].

[Announcement Summary](index=1&type=section&id=Announcement%20Summary) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The Group's revenue grew 1.0% driven by property management, but profit declined 37.1% due to fair value losses and reduced gross profit - The Board does not recommend any interim dividend for the period[3](index=3&type=chunk) Overview of Key Financial Data | Metric | Current Period (thousand HKD) | Prior Period (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 169,400 | 167,700 | 1.0% | | Profit attributable to equity holders | 15,100 | 24,000 | -37.1% | | Basic and diluted earnings per share | 5.04 HK cents | 3.99 HK cents (restated) | 26.3% | - Revenue growth was primarily driven by successful bidding for new projects in the property management segment, offset by reduced revenue from environmental hygiene and integrated development businesses[4](index=4&type=chunk) - The decrease in profit was mainly due to increased fair value losses on investment properties, reduced bank interest income, and a decline in gross profit[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue increased by 1.0%, but higher costs and fair value losses on investment properties led to a 36.3% decline in profit for the period Condensed Consolidated Statement of Profit or Loss Summary | Metric | Six Months Ended June 30, 2025 (thousand HKD) | Six Months Ended June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 169,381 | 167,741 | 1.0% | | Cost of sales and services | (124,013) | (120,555) | 2.9% | | Gross Profit | 45,368 | 47,186 | -3.8% | | Other income | 988 | 3,563 | -72.3% | | Fair value change of investment properties | (9,844) | (5,572) | 76.7% | | Profit for the period | 15,197 | 23,832 | -36.3% | | Profit attributable to equity holders of the Company | 15,132 | 24,017 | -37.0% | | Basic and diluted earnings per share | 5.04 HK cents | 3.99 HK cents | 26.3% | - Basic and diluted earnings per share increased from **3.99 HK cents** (restated) to **5.04 HK cents**, despite a decrease in profit for the period, possibly due to share consolidation[6](index=6&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Despite a decline in profit for the period, total comprehensive income surged over 200% due to favorable foreign currency translation differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric | Six Months Ended June 30, 2025 (thousand HKD) | Six Months Ended June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 15,197 | 23,832 | -36.3% | | Exchange differences on translation of foreign operations | 13,321 | (13,583) | 198.1% | | Total comprehensive income for the period | 29,237 | 9,602 | 204.5% | | Attributable to equity holders of the Company | 28,628 | 10,256 | 179.1% | - The shift from an exchange loss of **HKD 13.6 million** in the prior period to an exchange gain of **HKD 13.3 million** in the current period for overseas operations was the primary driver of the significant increase in total comprehensive income[7](index=7&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets slightly increased, with net current assets growing significantly, leading to a 6.1% rise in net assets, primarily due to increased reserves Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 238,168 | 243,614 | -2.2% | | Current assets | 399,447 | 387,029 | 3.2% | | Current liabilities | 134,323 | 149,435 | -10.1% | | Net current assets | 265,124 | 237,594 | 11.6% | | Net assets | 460,217 | 433,551 | 6.1% | | Equity attributable to equity holders of the Company | 354,068 | 327,540 | 8.1% | - Net current assets increased by **11.6%**, primarily due to an increase in current assets and a decrease in current liabilities[8](index=8&type=chunk) - Reserves increased from **HKD 207.3 million** to **HKD 233.8 million**, serving as the main driver for the growth in equity attributable to equity holders of the Company[9](index=9&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=6&type=section&id=1.%20General%20Information) The Company, an exempted limited company listed on the Stock Exchange, primarily operates in property management, environmental hygiene, and integrated development - The Company is an exempted limited company incorporated in the Cayman Islands, with its shares listed on The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - The Group primarily engages in property management and leasing services for residential and commercial properties, environmental hygiene, integrated development, and diversified tourism products and services[10](index=10&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) Unaudited interim financial statements, reviewed by the Audit Committee, are prepared under Listing Rules and HKAS 34 on a historical cost basis - The interim financial statements are unaudited, have been reviewed by the Audit Committee, and are prepared in accordance with Appendix D2 of the Listing Rules and Hong Kong Accounting Standard 34[12](index=12&type=chunk) - The adoption of new/revised Hong Kong Financial Reporting Standards had no significant impact on the Group's results and financial position[14](index=14&type=chunk) [3. Revenue and Segment Reporting](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Reporting) [3(a) Revenue](index=7&type=section&id=3%28a%29%20Revenue) Revenue, totaling **HKD 169.4 million**, is primarily generated from property management, environmental hygiene, tourism-related services, and rental income Revenue Composition | Revenue Category | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 88,584 | 85,260 | 3.9% | | Tourism-related services | 2,127 | 3,928 | -45.9% | | Environmental hygiene services | 63,696 | 65,249 | -2.4% | | Rental income | 14,974 | 13,304 | 12.6% | | **Total Revenue** | **169,381** | **167,741** | **1.0%** | [3(b) Segment Reporting](index=8&type=section&id=3%28b%29%20Segment%20Reporting) Operating segments include property management, environmental hygiene, and integrated development, with property management showing significant growth while others declined - Property management segment performance nearly doubled, increasing from **HKD 8.3 million** to **HKD 16.1 million**[21](index=21&type=chunk) - Environmental hygiene segment performance significantly decreased from **HKD 15.9 million** to **HKD 6.2 million**[21](index=21&type=chunk) - All external customer revenue and over **98%** of non-current assets of the Group are derived from mainland China[25](index=25&type=chunk) Key Client Revenue Contribution | Client | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Client A (related company) | <10% of total revenue | 19,369 | | Client B | 39,317 | 29,196 | [4. Finance Costs](index=12&type=section&id=4.%20Finance%20Costs) Finance costs, mainly interest on lease liabilities, increased slightly by 15.2% to **HKD 977 thousand** for the period Finance Costs | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 977 | 848 | 15.2% | [5. Profit Before Tax](index=12&type=section&id=5.%20Profit%20Before%20Tax) Profit before tax was affected by lower staff costs, a sharp drop in bank interest income, and increased loss allowance for trade receivables Profit Before Tax Impact Factors | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total staff costs | 43,570 | 48,406 | -9.99% | | Bank interest income | (851) | (3,536) | -75.9% | | Loss allowance for trade receivables | 1,861 | 4,568 | -59.2% | | Net exchange loss (gain) | 1,788 | (1,868) | 195.7% | - Bank interest income significantly decreased by **75.9%**, negatively impacting profit before tax[28](index=28&type=chunk) - Net exchange position shifted from a gain to a loss, increasing expenses by **HKD 1.8 million**[28](index=28&type=chunk) [6. Tax](index=13&type=section&id=6.%20Tax) Tax for the period was negative **HKD 104 thousand** due to deferred tax reversal, with China's taxable profits subject to 5% or 25% rates - Corporate income tax in China is levied at **5%** (for small and micro enterprises) or **25%**[29](index=29&type=chunk) - No provision for profits tax was made in Hong Kong due to tax losses incurred[29](index=29&type=chunk) Income Tax Composition | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Current tax (corporate income tax) | 1,953 | 2,206 | | Deferred tax (reversal) | (2,057) | (4,596) | | **Total income tax** | **(104)** | **(2,390)** | [7. Earnings Per Share](index=13&type=section&id=7.%20Earnings%20Per%20Share) Basic and diluted earnings per share increased to **5.04 HK cents**, primarily due to reduced distributions to perpetual convertible securities holders Earnings Per Share Calculation Data | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company | 15,132 | 24,017 | | Distributions paid to holders of perpetual convertible securities | (2,100) | (11,613) | | Distributions accrued to holders of perpetual convertible securities | – | (2,100) | | **Profit for EPS calculation** | **13,032** | **10,304** | - The weighted average number of ordinary shares used for EPS calculation has been retrospectively adjusted due to the share consolidation[33](index=33&type=chunk) - The assumed conversion and issue of perpetual convertible securities and share award schemes were not included in diluted EPS calculation due to their anti-dilutive effect[33](index=33&type=chunk) [8. Property, Plant and Equipment](index=14&type=section&id=8.%20Property%2C%20Plant%20and%20Equipment) The carrying amount of machinery and equipment, primarily lease-held assets, decreased to zero HKD as of June 30, 2025 - As of June 30, 2025, the carrying amount of machinery and equipment was **zero HKD**, compared to **HKD 3,498 thousand** as of December 31, 2024, primarily related to assets held under leases[34](index=34&type=chunk) [9. Trade Receivables](index=14&type=section&id=9.%20Trade%20Receivables) Total trade receivables increased to **HKD 166.8 million**, with a significant rise in overdue accounts from third parties and related companies Trade Receivables Composition | Source | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Third parties | 127,591 | 116,725 | 9.3% | | Related companies | 52,946 | 53,182 | -0.4% | | Loss allowance | (13,691) | (11,440) | 19.7% | | **Total (net of allowance)** | **166,846** | **158,467** | **5.3%** | Trade Receivables Aging Analysis | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Within 90 days | 60,985 | 62,001 | -1.6% | | 91 to 180 days | 18,626 | 34,769 | -46.4% | | 181 to 365 days | 57,212 | 48,986 | 16.8% | | Over 365 days | 30,023 | 12,711 | 136.2% | - The increase in trade receivables was primarily due to delayed payments from specific customers in the property management and environmental hygiene segments due to cash flow delays[66](index=66&type=chunk) [10. Trade Payables](index=15&type=section&id=10.%20Trade%20Payables) Total trade payables slightly decreased to **HKD 31.6 million**, mainly to third parties, though payables over 365 days increased Trade Payables Composition | Source | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | To third parties | 31,163 | 31,797 | -2.0% | | To related companies | 467 | 773 | -39.6% | | **Total** | **31,630** | **32,570** | **-2.9%** | Trade Payables Aging Analysis | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Within 90 days | 12,371 | 12,659 | -2.3% | | 91 to 180 days | 3,413 | 5,304 | -35.7% | | 181 to 365 days | 3,469 | 4,396 | -21.1% | | Over 365 days | 12,377 | 10,211 | 21.2% | [11. Share Capital](index=16&type=section&id=11.%20Share%20Capital) Share capital structure remained stable, with 258,442 thousand issued ordinary shares at **HKD 0.25** par value, totaling **HKD 64,610 thousand** - The authorized share capital is **400,000 thousand** shares with a par value of **HKD 0.25** each, totaling **HKD 100,000 thousand**[37](index=37&type=chunk) - The issued and fully paid share capital consists of **258,442 thousand** shares with a par value of **HKD 0.25** each, totaling **HKD 64,610 thousand**[37](index=37&type=chunk) - A share consolidation was effected on December 2, 2024, where every fifty shares of **HKD 0.005** par value were consolidated into one share of **HKD 0.25** par value[37](index=37&type=chunk) [12. Interim Dividend](index=16&type=section&id=12.%20Interim%20Dividend) The Board does not recommend any interim dividend for the period - The Board does not recommend any interim dividend for the period[38](index=38&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Overview, Business Strategies and Business Review](index=17&type=section&id=Industry%20Overview%2C%20Business%20Strategies%20and%20Business%20Review) The Group operates in property management, environmental hygiene, and integrated development in China, with property management revenue growing while others declined [Property Management Business](index=17&type=section&id=Property%20Management%20Business) Driven by urbanization, the property management business achieved 5.1% revenue growth through service quality improvements and digital platform adoption - National policies are driving the property management industry towards standardization, intelligence, and a people-oriented approach, encouraging the adoption of big data and artificial intelligence to enhance efficiency[42](index=42&type=chunk) - Hongyu Property Group received multiple industry awards and enhanced customer satisfaction by strengthening employee training, competitive promotion systems, and digital platforms for value-added services[43](index=43&type=chunk)[44](index=44&type=chunk) - The total gross floor area under management is approximately **8.5 million square meters**, with successful bids for several new projects (primarily public buildings), but some service contracts expired and were not renewed[45](index=45&type=chunk) Property Management Business Revenue | Business | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Property management business revenue | 103,600 | 98,600 | 5.1% | [Environmental Hygiene Business](index=20&type=section&id=Environmental%20Hygiene%20Business) Environmental hygiene revenue decreased by 2.3% due to fewer sporadic contracts, with future focus on service scope, client relations, and cost control - The environmental hygiene industry is expected to maintain rapid growth but faces challenges such as technology upgrade costs, human resource management, and environmental regulation enforcement[47](index=47&type=chunk) Environmental Hygiene Services Business Revenue | Business | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Environmental hygiene services revenue | 63,700 | 65,200 | -2.3% | - The decrease in revenue was primarily due to a reduction in sporadic contracts; the Group will implement cost control measures and provide training to enhance operational efficiency[48](index=48&type=chunk) [Integrated Development Business](index=21&type=section&id=Integrated%20Development%20Business) Integrated development revenue, particularly tourism-related services, decreased by 45.9% due to high mall vacancy rates and increased competition [Tourism-related Services](index=21&type=section&id=Tourism-related%20Services) Tourism-related revenue decreased by 45.9% to **HKD 2.1 million** due to high mall vacancy rates, increased competition, and lack of unique products Tourism-related Services Revenue | Business | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Tourism-related services revenue | 2,100 | 3,900 | -45.9% | - The decrease in revenue was primarily due to high shopping mall vacancy rates, increased competition from self-operated businesses by nearby villagers, and a lack of unique and competitive products[50](index=50&type=chunk) - A piece of land with a total area of **14,637 square meters** is in the planning stage, with a carrying value of approximately **HKD 15.5 million**[50](index=50&type=chunk) [Provision of Promotion, Event Planning and Consultancy Services](index=22&type=section&id=Provision%20of%20Promotion%2C%20Event%20Planning%20and%20Consultancy%20Services) No revenue was recorded from promotion, event planning, and consultancy services due to changes in a key client's sales and marketing strategy - No revenue was recorded from promotion, event planning, and consultancy services during the current and prior periods, mainly due to changes in a key client's sales and marketing strategy[52](index=52&type=chunk) [Diversified Tourism Products and Services Business](index=22&type=section&id=Diversified%20Tourism%20Products%20and%20Services%20Business) No revenue was recorded in diversified tourism products and services, as the Group focused on property management and environmental hygiene - No revenue was recorded in the diversified tourism products and services segment during the current and prior periods, as the Group focused on other businesses such as property management and environmental hygiene[53](index=53&type=chunk) [Future Outlook](index=22&type=section&id=Future%20Outlook) Property management and environmental hygiene industries are expected to grow but face rising costs; the Group plans strategic adjustments and acquisitions - The property management and environmental hygiene industries are expected to maintain growth but face increasing operating costs and intense competition[54](index=54&type=chunk) - The Group will adjust its market strategies to support national policies, enhance service quality, and promote intelligent and digital transformation[54](index=54&type=chunk)[55](index=55&type=chunk) - Future strategies include expanding service scope through cross-industry cooperation and strategically acquiring high-quality projects to grow the property management and environmental hygiene businesses[56](index=56&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) [Operating Performance](index=24&type=section&id=Operating%20Performance) Total revenue increased by 1.0% to **HKD 169.4 million**, driven by property management growth, while environmental hygiene and integrated development revenues declined Analysis by Revenue Nature | Business Category | 2025 (thousand HKD) | Share (%) | 2024 (thousand HKD) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property management and leasing related services | 103,558 | 61.1 | 98,564 | 58.8 | 5.1% | | Environmental hygiene services | 63,696 | 37.6 | 65,249 | 38.9 | -2.4% | | Tourism-related revenue | 2,127 | 1.3 | 3,928 | 2.3 | -45.9% | | **Total** | **169,381** | **100.0** | **167,741** | **100.0** | **1.0%** | - The increase in property management business revenue was primarily due to successful bids for several new projects, mainly in public facilities[58](index=58&type=chunk) - The decrease in environmental hygiene business revenue was mainly due to a reduction in sporadic contracts (non-tendered services)[58](index=58&type=chunk) - The decline in integrated development business revenue was primarily due to increased vacancy rates in Tumen Tourism's shopping mall and intense competition from self-operated businesses by nearby villagers[59](index=59&type=chunk) [Gross Profit and Gross Margin](index=25&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Total gross profit decreased by 3.8% to **HKD 45.4 million**, with gross margin falling to 26.8%, as property management growth was offset by declines in other segments Gross Profit and Gross Margin by Business Segment | Business Segment | 2025 Gross Profit (thousand HKD) | 2024 Gross Profit (thousand HKD) | Change (%) | 2025 Gross Margin (%) | 2024 Gross Margin (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property management business | 33,600 | 25,600 | 31.3% | 32.4% | 26.0% | 6.4 | | Environmental hygiene business | 10,000 | 18,100 | -44.8% | 15.7% | 27.7% | -12.0 | | Integrated development business | 1,800 | 3,500 | -48.6% | 82.2% | 89.7% | -7.5 | | **Total** | **45,400** | **47,200** | **-3.8%** | **26.8%** | **28.1%** | **-1.3** | - The increase in property management business gross profit and gross margin was primarily due to successful bids for new projects and effective operational cost control[60](index=60&type=chunk) - The decrease in environmental hygiene business gross profit and gross margin was mainly due to a reduction in sporadic contracts, contract expirations, and increased operating costs from upgraded services[61](index=61&type=chunk) [Profit for the Period](index=26&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased to **HKD 15.2 million** due to increased fair value losses on investment properties, lower bank interest income, and reduced gross profit - Profit for the period was approximately **HKD 15.2 million**, a decrease from **HKD 23.8 million** in the prior period[63](index=63&type=chunk) - The decrease in profit was mainly due to an increase in fair value losses on investment properties of approximately **HKD 4.3 million**, reduced bank interest income, and a decline in the Group's gross profit[63](index=63&type=chunk) [Asset Structure](index=26&type=section&id=Asset%20Structure) Property, plant and equipment, and right-of-use assets totaled **HKD 133.3 million**, with increases in trade receivables and contract assets Key Asset Composition | Asset Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment and right-of-use assets | 133,300 | 139,900 | -4.7% | | Investment properties | 75,500 | 76,000 | -0.7% | | Investment in an associate | 23,400 | 22,700 | 3.1% | | Inventories | 15,600 | 15,100 | 3.3% | | Trade receivables | 166,800 | 158,500 | 5.2% | | Contract assets | 26,100 | 16,900 | 54.4% | | Prepayments, deposits and other receivables, amounts due from related companies and an associate | 80,500 | 110,300 | -27.0% | | Fixed deposits and cash and cash equivalents | 110,400 | 86,400 | 27.8% | - The development project of the associate, Dakun Zhifang, has been suspended due to economic uncertainties; the Group is evaluating the feasibility of restarting and exploring alternative exit strategies[65](index=65&type=chunk) - Contract assets significantly increased by **54.4%**, primarily representing trade receivables yet to be invoiced, especially from government department clients[68](index=68&type=chunk) - Cash and cash equivalents increased by **27.8%**, mainly generated from operating activities, partially offset by repayment of lease liabilities and distributions[68](index=68&type=chunk) [Liability Structure](index=28&type=section&id=Liability%20Structure) Trade payables and contract liabilities decreased by 6.4% to **HKD 58.3 million**, mainly due to accelerated repayments in the environmental hygiene segment Key Liability Composition | Liability Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables and contract liabilities | 58,300 | 62,300 | -6.4% | | Other payables | 53,300 | 63,000 | -15.4% | | Lease liabilities | 42,300 | 46,400 | -8.8% | - The decrease in trade payables and contract liabilities was primarily due to accelerated repayments in the environmental hygiene segment[67](index=67&type=chunk) - Other payables decreased by **15.4%**, mainly due to a reduction in customer advances and retirement contributions payable in the environmental hygiene segment[71](index=71&type=chunk) [Liquidity and Financial Resources](index=29&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's current ratio increased to 3.0, indicating sound financial policy with operations funded by internal resources Liquidity Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 3.0 | 2.6 | | Gearing Ratio | Not applicable | Not applicable | - The Group funds its operations and investments through internal resources[69](index=69&type=chunk) [Foreign Exchange Risk](index=29&type=section&id=Foreign%20Exchange%20Risk) Most transactions are in RMB, making net assets susceptible to exchange rate fluctuations; no derivative instruments were used for hedging - Most of the Group's transactions are denominated and settled in RMB, so exchange rate fluctuations will affect net assets[70](index=70&type=chunk) - No derivative financial instruments were used to hedge foreign exchange risk during the period[70](index=70&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) [Capital Commitments](index=30&type=section&id=Capital%20Commitments) Capital commitments for equity securities investments totaled approximately **HKD 16.4 million** as of June 30, 2025 Capital Commitments | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Equity securities investments | 16,400 | 15,900 | 3.1% | [Significant Acquisitions, Investments and Disposals](index=30&type=section&id=Significant%20Acquisitions%2C%20Investments%20and%20Disposals) The Group had no significant investments, acquisitions, or disposals of subsidiaries and associates during the period - The Group had no significant investments, significant acquisitions, or disposals of subsidiaries and associates during the period[73](index=73&type=chunk) [Pledge of Assets](index=30&type=section&id=Pledge%20of%20Assets) The Group had no pledged assets as of June 30, 2025, and December 31, 2024 - The Group had no pledged assets[74](index=74&type=chunk) [Significant Contingent Liabilities](index=30&type=section&id=Significant%20Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024 - The Group had no significant contingent liabilities[75](index=75&type=chunk) [Number of Employees and Remuneration](index=30&type=section&id=Number%20of%20Employees%20and%20Remuneration) The Group's total employees increased to 2,400, while staff costs decreased by 9.9% to **HKD 43.6 million**; benefits include medical insurance and MPF Employee Data | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Employees | 2,400 | 2,100 | 14.3% | | Staff Costs (thousand HKD) | 43,600 | 48,400 | -9.9% | - The Group provides medical insurance, Mandatory Provident Fund (MPF) schemes, and a share award scheme for its employees[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - Employees in China participate in a Chinese retirement scheme, while Hong Kong employees participate in an MPF scheme[77](index=77&type=chunk) [Interim Dividend](index=31&type=section&id=Interim%20Dividend) The Board does not recommend any interim dividend for the period - The Board does not recommend any interim dividend for the period[79](index=79&type=chunk) [Corporate Governance](index=32&type=section&id=Corporate%20Governance) The Company complied with the Corporate Governance Code, except for the combined Chairman and CEO roles, and rectified prior non-compliance with Listing Rules [Corporate Governance Code](index=32&type=section&id=Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code, though the Chairman and CEO roles are combined, deviating from Code Provision C.2.1 - The Company complied with the Corporate Governance Code, except that the roles of Chairman and Chief Executive Officer are combined and performed by Mr. Mo Yueming, deviating from Code Provision C.2.1[80](index=80&type=chunk) [Non-compliance with Listing Rules](index=32&type=section&id=Non-compliance%20with%20Listing%20Rules) Non-compliance with Listing Rules on committee composition, due to INED re-designation, was rectified by appointing a new independent non-executive director - The re-designation of Mr. He Qi and Mr. Sui Fengzhi from independent non-executive directors to non-executive directors resulted in the Audit Committee and Nomination Committee composition not meeting Listing Rules requirements[81](index=81&type=chunk) - The Company rectified the non-compliance by appointing Mr. Yao Gang as an independent non-executive director, Chairman of the Audit Committee, and a member of the Nomination Committee on June 30, 2025, to comply with Listing Rules[82](index=82&type=chunk) [Standard Code for Securities Transactions by Directors](index=33&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Standard Code for directors' securities transactions, with all directors confirming compliance during the period - The Company adopted the Standard Code in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors confirmed compliance during the period[83](index=83&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) The Company did not redeem, purchase, or sell any of its listed securities on the Stock Exchange during the period - The Company did not redeem any of its listed securities on the Stock Exchange during the period, nor did the Company or any of its subsidiaries purchase or sell any such securities[84](index=84&type=chunk) [Significant Events After the Reporting Period](index=33&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period) The Group will acquire the remaining 49% interest in Hong Kong Dongsheng from China Comfort Travel Group, making it a wholly-owned entity - The Group will acquire the remaining **49%** interest in Hong Kong Dongsheng from China Comfort Travel Group Co., Ltd. for a consideration of **RMB 2,627,000** (approximately **HKD 2,876,000**), making it a wholly-owned entity after completion[85](index=85&type=chunk) - This acquisition is a fully exempt transaction as all applicable percentage ratios (except for the profit ratio) are less than **5%**, and the total consideration is less than **HKD 3,000,000**[85](index=85&type=chunk) [Audit Committee and Review of Interim Results](index=34&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee reviewed the unaudited interim results, confirming compliance with accounting standards, Listing Rules, and adequate disclosures - The Audit Committee has reviewed the Group's unaudited interim results for the period[87](index=87&type=chunk) - The Audit Committee concluded that applicable accounting standards were adopted, relevant Listing Rules complied with, and adequate disclosures made[87](index=87&type=chunk) [Publication of Interim Results and Interim Report](index=34&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement is published online, and the interim report will be dispatched to shareholders and published on the website - This interim results announcement is published on the Company's website (www.gycsfw.com.cn) and the Stock Exchange's website (www.hkexnews.hk)[88](index=88&type=chunk) [Acknowledgement](index=34&type=section&id=Acknowledgement) The Board extends its sincere gratitude to shareholders, business partners, and employees - The Board extends its sincere gratitude to shareholders, business partners, and employees[89](index=89&type=chunk) [Board Composition](index=34&type=section&id=Board%20Composition) As of the announcement date, the Board comprises three executive, two non-executive, and three independent non-executive directors - The Board comprises three executive directors (Mr. Mo Yueming, Ms. Hao Ying, and Mr. Xue Fei), two non-executive directors (Mr. He Qi and Mr. Sui Fengzhi), and three independent non-executive directors (Mr. Lin Huarong, Ms. Juliett Jing Dong, and Mr. Yao Gang)[90](index=90&type=chunk)

[Interim Financial Statements](index=1&type=section&id=Interim%20Financial%20Statements) This section presents the condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position, for the interim period [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Simplified%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's loss for the six months ended June 30, 2025, significantly narrowed compared to the same period last year, primarily due to a substantial reduction in total expenses, despite a slight decrease in revenue and other income | Indicator | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue and Other Income | 276,272 | 285,148 | (8,876) | (3.1%) | | Total Expenses | (590,339) | (676,375) | 86,036 | (12.7%) | | Operating Loss | (314,067) | (391,227) | 77,160 | (19.7%) | | Loss Before Tax | (284,870) | (358,524) | 73,654 | (20.5%) | | Loss for the Period Attributable to Equity Holders of the Company | (282,569) | (355,288) | 72,719 | (20.5%) | - The basic/diluted loss per share attributable to equity holders of the Company for the period improved to **HKD 0.10**, compared to **HKD 0.13** in the same period of 2024[5](index=5&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Simplified%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive income loss significantly narrowed, primarily driven by improved fair value changes of debt investments at fair value through other comprehensive income and exchange differences on translation of foreign operations | Indicator | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss for the Period | (282,569) | (355,288) | 72,719 | (20.5%) | | Fair Value Changes of Debt Investments at Fair Value Through Other Comprehensive Income | 88,619 | 181,599 | (92,980) | (51.2%) | | Exchange Differences on Translation of Foreign Operations | 91,994 | (77,731) | 169,725 | (218.3%) | | Total Comprehensive Income Attributable to Equity Holders of the Company | (81,254) | (217,943) | 136,689 | (62.7%) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Simplified%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased, but total equity decreased, and net current assets turned into net current liabilities, reflecting changes in the asset and liability structure | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 16,808,855 | 14,515,167 | 2,293,688 | 15.8% | | Total Equity | 801,494 | 882,748 | (81,254) | (9.2%) | | Total Liabilities | 16,007,361 | 13,632,419 | 2,374,942 | 17.4% | | Net Current (Liabilities) / Assets | (579,631) | 3,694,419 | (4,274,050) | (115.7%) | - Total non-current assets increased by **2.6%** to **HKD 4,509,995 thousand**, and total current assets increased by **21.5%** to **HKD 12,298,860 thousand**[7](index=7&type=chunk) - Total non-current liabilities significantly decreased by **56.6%** to **HKD 3,128,870 thousand**, while total current liabilities substantially increased by **100.4%** to **HKD 12,878,491 thousand**[8](index=8&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Simplified%20Consolidated%20Financial%20Information) This section provides detailed notes to the condensed consolidated financial information, covering general information, accounting policy changes, segment data, revenue, impairment, tax, dividends, loss per share, and specific asset and liability accounts [General Information](index=6&type=section&id=General%20Information) BOCOM International Holdings Company Limited is an investment holding company incorporated in Hong Kong, primarily engaged in securities brokerage, margin financing, corporate finance and underwriting, investment and lending, and asset management and advisory businesses, with Bank of Communications Co., Ltd. as its ultimate controlling company - The Company's principal business is investment holding, with the Group engaged in securities brokerage, margin financing, corporate finance and underwriting, investment and lending, and asset management and advisory businesses[9](index=9&type=chunk) - The parent company and ultimate controlling company is Bank of Communications Co., Ltd., incorporated in China and listed on the Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) The interim financial report follows the accounting policies adopted in the 2024 annual financial statements, with the application of HKAS 21 (Amendment) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability' having no material impact on the Group - The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[11](index=11&type=chunk) - The Group has applied HKAS 21 (Amendment) issued by the Hong Kong Institute of Certified Public Accountants, which had no material impact on the Group[12](index=12&type=chunk)[13](index=13&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group's operations are managed across six segments: brokerage, corporate finance and underwriting, asset management and advisory, margin financing, investment and lending, and other, with varied performance in revenue and profit/loss before tax, where investment and lending contributed most to the total loss, while brokerage achieved profitability - The Group manages its business operations across six segments based on the nature of operations and services provided: brokerage, corporate finance and underwriting, asset management and advisory, margin financing, investment and lending, and other[15](index=15&type=chunk)[16](index=16&type=chunk) Segment Total Revenue and Profit / (Loss) Before Tax Overview (Six Months Ended June 30, 2025) | Segment | Total Revenue (thousand HKD) | Profit / (Loss) Before Tax (thousand HKD) | | :--- | :--- | :--- | | Brokerage | 78,463 | 574 | | Corporate Finance and Underwriting | 10,944 | (28,669) | | Asset Management and Advisory | 28,969 | (5,967) | | Margin Financing | 25,612 | 14,361 | | Investment and Lending | 184,458 | (264,895) | | Other | 48,720 | (274) | | **Total** | **276,272** | **(284,870)** | Segment Total Revenue and (Loss) / Profit Before Tax Overview (Six Months Ended June 30, 2024) | Segment | Total Revenue (thousand HKD) | (Loss) / Profit Before Tax (thousand HKD) | | :--- | :--- | :--- | | Brokerage | 47,797 | (29,653) | | Corporate Finance and Underwriting | 33,717 | (10,878) | | Asset Management and Advisory | 46,171 | (5,649) | | Margin Financing | 33,766 | (28,779) | | Investment and Lending | 55,495 | (337,975) | | Other | 101,972 | 54,410 | | **Total** | **285,148** | **(358,524)** | - Total external customer revenue from Hong Kong was **HKD 279,645 thousand** (2024: HKD 261,375 thousand), while from Mainland China it was **HKD (3,373) thousand** (2024: HKD 23,773 thousand)[18](index=18&type=chunk) [Revenue and Other Income](index=10&type=section&id=Revenue%20and%20Other%20Income) Total revenue and other income slightly decreased, with growth in commission and fee income, but declines in interest income, proprietary trading income (narrowed loss), and other income, particularly reduced exchange gains and computer software service income Revenue and Other Income Classification (Six Months Ended June 30, 2025) | Category | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Commission and Fee Income | 104,118 | 96,019 | 8,099 | 8.4% | | Interest Income | 155,449 | 162,669 | (7,220) | (4.4%) | | Proprietary Trading Income | (42,335) | (82,593) | 40,258 | (48.7%) | | **Total Revenue** | **217,232** | **176,095** | **41,137** | **23.4%** | | Other Income | 59,040 | 109,053 | (49,993) | (45.8%) | | **Total Revenue and Other Income** | **276,272** | **285,148** | **(8,876)** | **(3.1%)** | - Brokerage commission income increased by **68.3%** to **HKD 71,261 thousand**, while corporate finance and underwriting fees decreased by **67.5%** to **HKD 10,944 thousand**[19](index=19&type=chunk) - Exchange gains within other income decreased from **HKD 38,968 thousand** in the same period of 2024 to **zero** in 2025, with a significant reduction in computer software development and maintenance service income[20](index=20&type=chunk) - As of the end of the reporting period, the total revenue expected to be recognized in the future from customer contracts was **HKD 94,495 thousand**, primarily from corporate finance, asset management, and advisory services, expected to be recognized within one year[21](index=21&type=chunk) [Changes in Impairment Provisions](index=11&type=section&id=Changes%20in%20Impairment%20Provisions) The Group's total impairment provisions slightly increased, with a significant rise in provisions for loans and advances, while provisions for margin client loans and debt investments at fair value through other comprehensive income decreased Changes in Impairment Provisions (Six Months Ended June 30, 2025) | Category | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade Receivables | 350 | 3,729 | (3,379) | (90.6%) | | Margin Client Loans | (895) | 18,011 | (18,906) | (105.0%) | | Loans and Advances | 39,293 | 6,989 | 32,304 | 462.2% | | Debt Investments at Fair Value Through Other Comprehensive Income | 8,815 | 32,995 | (24,180) | (73.3%) | | Other Receivables | 12,446 | (1,924) | 14,370 | (746.9%) | | **Total Impairment Provisions** | **60,009** | **59,800** | **209** | **0.3%** | | Bad Debt Recoveries | (1,416) | (5,807) | 4,391 | (75.6%) | | **Net Changes in Impairment Provisions** | **58,593** | **53,993** | **4,600** | **8.5%** | [Items Deducted from Loss Before Tax](index=12&type=section&id=Loss%20Before%20Tax%20Deductions) The Group's finance costs and staff costs both significantly decreased, contributing to the narrowed loss before tax, while depreciation expenses remained relatively stable Items Deducted from Loss Before Tax (Six Months Ended June 30, 2025) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 225,583 | 298,259 | (72,676) | (24.4%) | | Staff Costs | 141,123 | 173,673 | (32,550) | (18.7%) | | Depreciation | 57,351 | 61,631 | (4,280) | (6.9%) | | Operating Lease Expenses | 1,364 | 1,972 | (608) | (30.8%) | - The decrease in finance costs primarily resulted from reduced interest expenses on debts under repurchase agreements, bank loans from the ultimate controlling company, and bank loans and overdrafts from other financial institutions[23](index=23&type=chunk) [Income Tax](index=12&type=section&id=Income%20Tax) The Group recognized an income tax credit for the period, primarily due to the impact of deferred tax, with Hong Kong profits tax at 16.5% and China corporate income tax at 25% Income Tax (Six Months Ended June 30, 2025) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Current Tax | 2,045 | 2,320 | | Deferred Tax | (4,346) | (5,556) | | Income Tax Credit Recognized in Profit or Loss | (2,301) | (3,236) | - Hong Kong profits tax is provided at **16.5%**, and the corporate income tax rate for PRC entities is **25%**[24](index=24&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Company neither paid nor declared any dividends for the six months ended June 30, 2025, consistent with the same period last year - The Company neither paid nor declared any dividends for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[26](index=26&type=chunk) [Loss Per Share](index=13&type=section&id=Loss%20Per%20Share) The Company's basic and diluted loss per share both improved, reflecting the narrowed loss for the period, with no potentially dilutive ordinary shares Loss Per Share (Six Months Ended June 30, 2025) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Loss Attributable to Equity Holders of the Company (thousand HKD) | (282,569) | (355,288) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 2,734,392 | 2,734,392 | | Loss Per Share (HKD per share) | (0.10) | (0.13) | - There were no potentially dilutive ordinary shares, and thus diluted loss per share was the same as basic loss per share[28](index=28&type=chunk) [Loans and Advances](index=13&type=section&id=Loans%20and%20Advances) The Group's net loans and advances significantly decreased, primarily due to a substantial decline in the current portion, despite an increase in impairment provisions Loans and Advances (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Loans and Advances | 748,003 | 1,210,764 | (462,761) | (38.2%) | | Less: Impairment Provisions | (570,572) | (535,775) | (34,797) | 6.5% | | **Net Loans and Advances** | **177,431** | **674,989** | **(497,558)** | **(73.7%)** | | Non-current Portion | 27,588 | 11,568 | 16,020 | 138.5% | | Current Portion | 149,843 | 663,421 | (513,578) | (77.4%) | [Trade Receivables](index=14&type=section&id=Trade%20Receivables) The Group's trade receivables significantly increased, primarily from securities and futures trading business, with the vast majority being current (not overdue) amounts Trade Receivables (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate Finance and Underwriting Business | 16,600 | 2,627 | 13,973 | 532.0% | | Securities and Futures Trading Business | 1,664,293 | 910,073 | 754,220 | 82.9% | | Less: Impairment Provisions | (1,059) | (709) | (350) | 49.4% | | **Net Trade Receivables** | **1,679,834** | **911,991** | **767,843** | **84.2%** | - Of the trade receivables, **HKD 1,674,033 thousand** were current (not overdue), indicating a healthy aging structure[30](index=30&type=chunk) [Other Receivables and Prepayments](index=15&type=section&id=Other%20Receivables%20and%20Prepayments) The Group's other receivables and prepayments significantly increased, primarily due to a substantial rise in other receivables Other Receivables and Prepayments (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Other Receivables | 846,437 | 345,591 | 500,846 | 144.9% | | Less: Impairment Provisions | (64,886) | (63,723) | (1,163) | 1.8% | | **Net Other Receivables** | **781,551** | **281,868** | **499,683** | **177.3%** | | Prepayments | 74,077 | 20,829 | 53,248 | 255.6% | | **Total** | **855,628** | **302,697** | **552,931** | **182.7%** | [Margin Client Loans](index=15&type=section&id=Margin%20Client%20Loans) Net margin client loans decreased, primarily due to a reduction in gross margin loans, despite a significant decrease in impairment provisions Margin Client Loans (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Margin Client Loans | 660,282 | 995,220 | (334,938) | (33.7%) | | Less: Impairment Provisions | (15,629) | (161,978) | 146,349 | (90.4%) | | **Net Margin Client Loans** | **644,653** | **833,242** | **(188,589)** | **(22.6%)** | [Trade Payables](index=15&type=section&id=Trade%20Payables) The Group's trade payables significantly increased, primarily due to a substantial rise in amounts payable for client trade settlements Trade Payables (As of June 30, 2025) | Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Clients - Trade Settlements | 1,230,595 | 624,690 | 605,905 | 97.0% | | Clearing Houses | 120,043 | 3,181 | 116,862 | 3673.7% | | Brokers | 142,472 | 230,850 | (88,378) | (38.3%) | | **Total** | **1,493,110** | **858,721** | **634,389** | **73.9%** | - Settlement terms for client trade payables are typically two or three business days after the trade date or specific terms agreed with clients, brokers, or clearing houses[36](index=36&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) This section provides a comprehensive review of the Group's business segments, including overall performance, securities brokerage, margin financing, corporate finance, asset management, investment and lending, and research activities [Overall Business Performance](index=16&type=section&id=Overall%20Business%20Performance) As a full-service securities company, the Group narrowed its loss in the first half of 2025 from **HKD 355.3 million** in the same period of 2024 to **HKD 282.6 million**, indicating an improvement in operating performance - The Group's loss for the first half of 2025 was **HKD 282.6 million**, a reduction from **HKD 355.3 million** in the same period of 2024[38](index=38&type=chunk) - One of the Group's core competitive advantages is providing comprehensive financial services and products to meet diverse client investment and financing needs[38](index=38&type=chunk) [Securities Brokerage and Margin Financing](index=16&type=section&id=Securities%20Brokerage%20and%20Margin%20Financing) Securities brokerage commission and fee income significantly increased, with a notable contribution from Hong Kong stocks; however, margin financing interest income decreased despite an increase in margin client accounts, due to a reduction in average monthly loan balances - Securities brokerage commission and fee income was **HKD 71.3 million** (H1 2025), an increase of **HKD 29.0 million** or **68.3%** compared to the same period in 2024[39](index=39&type=chunk) Securities Brokerage Commission Details by Product Type (Six Months Ended June 30) | Product Type | 2025 (million HKD) | 2025 (%) | 2024 (million HKD) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong Stocks | 58.1 | 81.5 | 25.5 | 60.3 | | Non-Hong Kong Stocks | 4.8 | 6.7 | 4.5 | 10.6 | | Bonds | 5.1 | 7.2 | 9.2 | 21.8 | | Other | 3.3 | 4.6 | 3.1 | 7.3 | | **Total** | **71.3** | **100.0** | **42.3** | **100.0** | - The number of margin client accounts increased to **9,761**, but margin loan interest income was **HKD 25.6 million**, a decrease of **HKD 8.2 million** or **24.1%** compared to the same period in 2024[41](index=41&type=chunk)[43](index=43&type=chunk) - Average monthly margin loan balance decreased from **HKD 1,067.4 million** as of December 31, 2024, to **HKD 983.3 million** as of June 30, 2025[43](index=43&type=chunk) [Corporate Finance and Underwriting](index=18&type=section&id=Corporate%20Finance%20and%20Underwriting) Despite a recovery in Hong Kong's IPO market with significant growth in new listings and total funds raised, the Group's corporate finance and underwriting service commission and fee income significantly decreased, completing six IPO main board listings and 30 bond issuance projects during the period - Corporate finance and underwriting service commission and fee income was **HKD 10.9 million** (H1 2025), a **67.5%** decrease from **HKD 33.7 million** in the same period of 2024[45](index=45&type=chunk) - In the first half of 2025, a total of **42** new shares were listed on the Stock Exchange, with total IPO funds raised amounting to **HKD 107.06 billion**, representing year-on-year increases of **40.00%** and **701.32%** respectively[45](index=45&type=chunk) - The Group completed **six** IPO main board listing projects as overall coordinator, global coordinator/bookrunner, and **30** bond issuance projects, assisting enterprises in raising a total of **USD 11.4 billion**[45](index=45&type=chunk) [Asset Management and Advisory](index=18&type=section&id=Asset%20Management%20and%20Advisory) The Group's Assets Under Management (AUM) increased, and it successfully launched its first public USD money market fund; asset management and advisory service fee income slightly rose, but proprietary trading income was zero - As of June 30, 2025, total Assets Under Management (AUM) was approximately **HKD 20,607.4 million**, an increase of **13.5%** compared to December 31, 2024[48](index=48&type=chunk) - Asset management and advisory service fee income was **HKD 21.9 million** (H1 2025), an increase of **9.7%** compared to the same period in 2024[48](index=48&type=chunk) - Successfully launched BOCOM International Money Market Fund (USD), the Group's first public USD money market fund approved by the Hong Kong SFC for sale in Hong Kong[47](index=47&type=chunk) - BOCOM Dragon Core Growth Fund achieved a return of **15.41%**, outperforming the Hang Seng Index by **5.17 percentage points** during the same period[47](index=47&type=chunk) [Investment and Lending](index=19&type=section&id=Investment%20and%20Lending) The Group's investment and lending business focuses on strategic emerging industries and short-to-medium duration bonds, with a slight increase in loan interest income and a significant narrowing of proprietary trading losses; the loan portfolio is concentrated in real estate, finance, and manufacturing, with high exposure to the top five clients - Interest income from loans and advances and financial assets at fair value through other comprehensive income was **HKD 129.8 million** (H1 2025), an increase of approximately **0.7%** compared to the same period in 2024[51](index=51&type=chunk) - Proprietary trading loss was **HKD 42.3 million** (H1 2025), a reduction of **HKD 50.3 million** compared to the same period in 2024[51](index=51&type=chunk) - Total loans granted by the Group to its top five clients amounted to **HKD 727 million**, representing **97.2%** of the Group's total loans granted during the reporting period, with **HKD 330 million** granted to the single largest client[50](index=50&type=chunk) Investment Balances by Asset Type for Equity and Fixed Income Investment Business (As of June 30, 2025) | Asset Type | June 30, 2025 (million HKD) | 2025 (%) | December 31, 2024 (million HKD) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Fixed Income Securities | 7,327.5 | 70.9 | 5,876.8 | 67.0 | | Equity Investments | 19.7 | 0.2 | 48.3 | 0.6 | | Funds | 2,986.6 | 28.9 | 2,838.1 | 32.4 | [Research](index=21&type=section&id=Research) The research team focuses on forward-looking and thematic research strategies, covering nine major industry sectors, aiming to uncover company value, strengthen group synergy, and enhance market competitiveness - The research team focuses on forward-looking and thematic research strategies, committed to full industry chain coverage of trending sectors, identifying sector and company value[55](index=55&type=chunk) - As of June 30, 2025, the research team covered **nine** major industry sectors and related listed company stocks[55](index=55&type=chunk) [Financial Performance Overview](index=22&type=section&id=Financial%20Performance%20Overview) This section provides a summary of the Group's financial performance, highlighting segment revenue contributions and overall loss reduction [Segment Revenue Summary](index=22&type=section&id=Segment%20Revenue%20Summary) The Group's total revenue and other income slightly decreased, but segment performance varied, with significant revenue growth in brokerage and investment and lending segments, while corporate finance and underwriting, asset management and advisory, margin financing, and other segments experienced revenue declines Total Revenue and Other Income Breakdown by Segment (Six Months Ended June 30) | Segment | 2025 (million HKD) | 2024 (million HKD) | Y-o-Y Change (million HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Brokerage | 78.5 | 47.7 | 30.8 | 64.6% | | Corporate Finance and Underwriting | 11.0 | 33.7 | (22.7) | (67.4%) | | Asset Management and Advisory | 21.9 | 29.9 | (8.0) | (26.8%) | | Margin Financing | 25.6 | 33.8 | (8.2) | (24.3%) | | Investment and Lending | 90.6 | 38.0 | 52.6 | 138.4% | | Other | 48.7 | 102.0 | (53.3) | (52.3%) | | **Total** | **276.3** | **285.1** | **(8.8)** | **(3.1%)** | - The Group's loss for the six months ended June 30, 2025, was approximately **HKD 282.6 million**, compared to a loss of **HKD 355.3 million** in the same period of 2024, representing a **20.5%** narrowing of the loss[56](index=56&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the Group's liquidity, financial resources, and capital structure, including cash balances, gearing ratio, and information on acquisitions, disposals, major investments, asset pledges, capital commitments, and contingent liabilities [Liquidity, Financial Resources and Gearing Ratio](index=22&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Gearing%20Ratio) The Group's cash and bank balances increased, but net current assets turned into net current liabilities, and the current ratio decreased; total borrowings increased, leading to a significant rise in the gearing ratio, yet the Board considers liquidity to be adequate - Cash and bank balances increased by **HKD 171.0 million** to **HKD 1,748.9 million** (December 31, 2024: HKD 1,577.9 million)[57](index=57&type=chunk) - Net current assets decreased by **HKD 4,274.0 million**, turning into net current liabilities of **HKD 579.6 million** (December 31, 2024: net current assets of HKD 3,694.4 million)[57](index=57&type=chunk) - The current ratio was approximately **1.0 times** (December 31, 2024: 1.6 times)[57](index=57&type=chunk) - Total borrowings amounted to **HKD 13,465.8 million** (December 31, 2024: HKD 11,649.0 million), and the gearing ratio (calculated as total borrowings divided by total equity) was **1,680.1%** (December 31, 2024: 1,319.6%)[57](index=57&type=chunk)[59](index=59&type=chunk) [Significant Acquisitions and Disposals](index=23&type=section&id=Significant%20Acquisitions%20and%20Disposals) During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[60](index=60&type=chunk) [Major Investments Held](index=23&type=section&id=Major%20Investments%20Held) During the reporting period, the Group did not hold any major investments - During the reporting period, the Group held no major investments[61](index=61&type=chunk) [Pledge of Group Assets](index=23&type=section&id=Group%20Assets%20Pledged) As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, no Group assets were pledged[62](index=62&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments[63](index=63&type=chunk) [Contingent Liabilities](index=23&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[64](index=64&type=chunk) [Outlook and Other Information](index=24&type=section&id=Outlook%20and%20Other%20Information) This section outlines the Group's future outlook amidst global economic challenges and opportunities, along with other relevant information including securities transactions, corporate governance, audit committee review, and key definitions [Outlook](index=24&type=section&id=Outlook) The Group anticipates global economic challenges in the second half of 2025, with potential for marginal improvement; China's economy will continue rebalancing domestic and external demand, while Hong Kong, as an international financial center, will play a crucial role, and the Company will seize opportunities to focus on 'Technology Finance, Green Finance, Inclusive Finance, Pension Finance, and Digital Finance' to enhance its comprehensive financial service capabilities - The global economic growth outlook for the second half of 2025 still faces multiple challenges but is expected to see marginal improvement[65](index=65&type=chunk) - China's economy will continue its rebalancing of domestic and external demand, with macroeconomic policies providing a confidence anchor and support for technological innovation, green transformation, and industrial upgrading[65](index=65&type=chunk) - Hong Kong will leverage its role as an international financial center bridge, with new vitality injected into emerging businesses such as RMB internationalization, green finance, and technology finance[65](index=65&type=chunk) - The Company will focus on the five key areas of 'Technology Finance, Green Finance, Inclusive Finance, Pension Finance, and Digital Finance,' concentrating on new quality productive forces to enhance its comprehensive financial service capabilities[65](index=65&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section covers the Company's non-purchase, sale, or redemption of listed securities during the reporting period, compliance with the Corporate Governance Code, the Audit Committee's review of interim financial information, and reiterates no interim dividend declaration - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[66](index=66&type=chunk) - The Company has complied with all code provisions set out in Part 2 of the Corporate Governance Code under the Listing Rules[67](index=67&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with management and KPMG, and has reviewed the interim report[68](index=68&type=chunk) - The Company did not pay or declare any dividends for the six months ended June 30, 2025[69](index=69&type=chunk) [Definitions](index=25&type=section&id=Definitions) This section provides definitions for key terms used in the announcement to ensure a clear understanding of the report's content - This section provides definitions for **22** key terms, including 'Bank of Communications Group', 'Assets Under Management', 'Board', 'Bank of Communications', 'Company', 'Corporate Governance Code', 'Directors', and 'Group'[72](index=72&type=chunk)[73](index=73&type=chunk)[75](index=75&type=chunk)