Company Information and Report Overview [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) Beijing Luzhu Biotechnology Co., Ltd. released its unaudited condensed consolidated interim results announcement for the six months ended June 30, 2025 - The reporting period covers the unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) The company significantly narrowed its pre-tax loss by 29.4% year-on-year in H1 2025, driven by substantial reductions in administrative and R&D expenses, despite decreased other income and net gains, and a sharp increase in finance costs H1 2025 Financial Highlights (RMB thousands) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Other income | 4,850 | 9,732 | (50.2) | | Other expenses | (585) | (189) | 209.5 | | Net other gains and losses | 2,405 | 6,255 | (61.6) | | Impairment loss recognized on property, plant and equipment | (5,441) | – | 100.0 | | Administrative expenses | (25,801) | (44,962) | (42.6) | | Research and development expenses | (50,273) | (80,376) | (37.5) | | Finance costs | (2,725) | (398) | 584.7 | | Loss before tax | (77,570) | (109,938) | (29.4) | | Income tax expense | – | – | – | | Loss and total comprehensive expenses for the period | (77,570) | (109,938) | (29.4) | [Business Highlights](index=2&type=section&id=Business%20Highlights) The company's core product LZ901 achieved significant progress in H1 2025, including the submission and acceptance of its Biologics License Application (BLA) to the NMPA, and head-to-head study results showing superior immunogenicity and safety compared to Shingrix® - Core product LZ901 submitted BLA to NMPA in January 2025 and was accepted in February[4](index=4&type=chunk) - LZ901 head-to-head comparative study successfully completed, results showed LZ901 induced superior cellular immunogenicity and exhibited better safety in adults aged 50 or above compared to recombinant glycoprotein E subunit vaccine HZ/su vaccine (Shingrix®)[4](index=4&type=chunk) - Annual general meeting approved the 2025 share award scheme, election/re-election of the fifth board of directors, and re-election of shareholder representative supervisors[5](index=5&type=chunk) Condensed Consolidated Financial Statements [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) For the six months ended June 30, 2025, the company's loss and total comprehensive expenses for the period significantly narrowed by 29.4% to RMB 77,570 thousand, with basic and diluted loss per share improving from RMB 0.54 to RMB 0.39 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Other income | 4,850 | 9,732 | | Other expenses | (585) | (189) | | Net other gains and losses | 2,405 | 6,255 | | Impairment loss recognized on property, plant and equipment | (5,441) | – | | Administrative expenses | (25,801) | (44,962) | | Research and development expenses | (50,273) | (80,376) | | Finance costs | (2,725) | (398) | | Loss before tax | (77,570) | (109,938) | | Income tax expense | – | – | | Loss and total comprehensive expenses for the period | (77,570) | (109,938) | Loss Per Share (RMB) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic | (0.39) | (0.54) | | Diluted | (0.39) | (0.54) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets less current liabilities increased to RMB 977,438 thousand, but net assets decreased to RMB 739,131 thousand, with non-current liabilities significantly rising due to increased bank borrowings and net current assets slightly decreasing Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current assets** | | | | Right-of-use assets | 97,135 | 99,504 | | Property, plant and equipment | 502,813 | 457,588 | | Intangible assets | 8,615 | 8,329 | | Prepayments, deposits and other receivables | 3,074 | 12,166 | | Investment in an associate | 1,000 | – | | Time deposits | 1,005 | – | | **Subtotal** | **613,642** | **577,587** | | **Current assets** | | | | Materials | 4,398 | 5,735 | | Prepayments, deposits and other receivables | 15,640 | 13,461 | | Financial assets at fair value through profit or loss | 342,176 | 313,554 | | Cash and cash equivalents | 99,219 | 140,126 | | **Subtotal** | **461,433** | **472,876** | | **Current liabilities** | | | | Prepayments received and other payables | 86,168 | 97,037 | | Bank borrowings | 11,469 | 1,820 | | **Subtotal** | **97,637** | **98,857** | | **Net current assets** | **363,796** | **374,019** | | **Total assets less current liabilities** | **977,438** | **951,606** | | **Non-current liabilities** | | | | Lease liabilities | 12,992 | 12,619 | | Deferred government grants | 29,460 | 32,302 | | Bank borrowings | 195,855 | 53,094 | | **Subtotal** | **238,307** | **98,015** | | **Net assets** | **739,131** | **853,591** | | **Total equity** | **739,131** | **853,591** | Notes to the Condensed Consolidated Financial Statements [General Information](index=6&type=section&id=General%20Information) The company and its subsidiaries are primarily engaged in the research, development, and production of vaccines and therapeutic biologics in China, with financial statements presented in RMB - The Group is primarily engaged in the research, development, and production of vaccines and therapeutic biologics in China[9](index=9&type=chunk) - The condensed consolidated financial statements are presented in RMB[9](index=9&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of the HKEX Listing Rules - Financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules[10](index=10&type=chunk) [Principal Accounting Policies](index=6&type=section&id=Principal%20Accounting%20Policies) The financial statements are primarily prepared on a historical cost basis, except for certain financial instruments measured at fair value, with no significant impact from IFRS amendments applied during the period - Financial statements are primarily prepared on a historical cost basis, with some financial instruments measured at fair value[11](index=11&type=chunk) - Amendments to IFRS accounting standards applied during the period had no significant impact[12](index=12&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group has only one operating and reportable segment and recorded no revenue during the reporting period, with all non-current assets located in mainland China - The Group has only one operating and reportable segment[13](index=13&type=chunk) - For the six months ended June 30, 2025, the Group recorded no revenue[13](index=13&type=chunk) [Other Income](index=7&type=section&id=Other%20Income) Other income decreased by 50.2% year-on-year to RMB 4,850 thousand, primarily due to reduced government grants, despite increased sales revenue from VZV vaccine immunogenicity detection kits Composition of Other Income (RMB thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Sales revenue from VZV vaccine immunogenicity detection kits | 1,473 | 650 | | Government grants (property and equipment) | 1,507 | 1,267 | | Government grants (right-of-use assets) | 1,335 | 1,335 | | Government grants (others) | 155 | 4,718 | | Interest income from bank balances and time deposits | 370 | 1,752 | | Interest income from lease deposits | 10 | 10 | | **Total** | **4,850** | **9,732** | - Other income decreased by **50.2%** year-on-year, primarily due to reduced government grants[3](index=3&type=chunk)[14](index=14&type=chunk) [Net Other Gains and Losses](index=7&type=section&id=Net%20Other%20Gains%20and%20Losses) Net other gains and losses decreased by 61.6% year-on-year to RMB 2,405 thousand, mainly affected by reduced fair value gains on financial assets at fair value through profit or loss and net foreign exchange losses Composition of Net Other Gains and Losses (RMB thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Fair value gains on financial assets at fair value through profit or loss | 3,531 | 5,309 | | Net foreign exchange (losses) gains | (1,126) | 975 | | Loss on early termination of lease | – | (29) | | **Total** | **2,405** | **6,255** | - Net other gains and losses decreased by **61.6%** year-on-year, primarily due to reduced fair value gains on financial assets and a shift from foreign exchange gains to losses[3](index=3&type=chunk)[15](index=15&type=chunk) [Finance Costs](index=8&type=section&id=Finance%20Costs) Finance costs significantly increased by 584.7% year-on-year to RMB 2,725 thousand, primarily due to new bank borrowings Composition of Finance Costs (RMB thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank borrowings | 2,814 | 135 | | Interest on lease liabilities | 373 | 356 | | Total borrowing costs | 3,187 | 491 | | Less: Amount capitalized in construction in progress | (462) | (93) | | **Total** | **2,725** | **398** | - Finance costs increased by **584.7%** year-on-year, primarily due to the Group obtaining additional bank loans[3](index=3&type=chunk)[16](index=16&type=chunk) [Income Tax Expense](index=8&type=section&id=Income%20Tax%20Expense) The company and its Chinese subsidiaries incurred no income tax expense during the reporting period due to tax losses, and the Hong Kong subsidiary also had no taxable profits; as of June 30, 2025, the company had approximately RMB 789,760 thousand in unused tax losses - Due to tax losses incurred, the Company and its PRC subsidiaries had no income tax expense during the reporting period[18](index=18&type=chunk) - As of June 30, 2025, the Group's estimated unused tax losses amounted to approximately **RMB 789,760 thousand**[18](index=18&type=chunk) [Dividends](index=8&type=section&id=Dividends) The Board of Directors decided not to declare an interim dividend for the six months ended June 30, 2025 - No dividends were paid, declared, or proposed during the interim period[19](index=19&type=chunk) [Loss Per Share](index=9&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted loss per share were RMB 0.39, an improvement from RMB 0.54 in the prior year period Loss Per Share (RMB) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic | (0.39) | (0.54) | | Diluted | (0.39) | (0.54) | [Prepayments, Deposits and Other Receivables](index=9&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, total prepayments, deposits, and other receivables decreased to RMB 18,714 thousand from RMB 25,627 thousand at the end of 2024, mainly due to reduced prepayments for property, plant, and equipment purchases Prepayments, Deposits and Other Receivables (RMB thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Recoverable value-added tax | 7,905 | 5,627 | | Prepayments for purchase of property, plant and equipment | 2,659 | 11,815 | | Prepayments to suppliers and service providers | 5,452 | 6,629 | | Lease deposits | 361 | 351 | | Receivables for diagnostic kits | 733 | - | | Others | 1,604 | 1,205 | | **Total** | **18,714** | **25,627** | [Prepayments Received and Other Payables](index=10&type=section&id=Prepayments%20Received%20and%20Other%20Payables) As of June 30, 2025, total prepayments received and other payables decreased to RMB 86,168 thousand from RMB 97,037 thousand at the end of 2024, primarily due to reduced payables for R&D activities Prepayments Received and Other Payables (RMB thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Payables for acquisition of property, plant and equipment | 51,725 | 48,437 | | Payables for research and development activities | 29,911 | 41,808 | | Payables for intangible assets | 520 | 1,327 | | Accrued salaries and other allowances | 2,400 | 5,091 | | Other tax payables | 1,270 | 154 | | Others | 342 | 220 | | **Total** | **86,168** | **97,037** | [Share Capital / Treasury Shares](index=10&type=section&id=Share%20Capital%20%2F%20Treasury%20Shares) The company's share capital remained unchanged, but 1,759,200 H shares were repurchased during the period for approximately RMB 36,890 thousand, holding 3,219,200 treasury H shares at period-end for the 2025 Share Award Scheme - As of June 30, 2025, share capital remained at **202,450 thousand shares**, **RMB 202,450 thousand**[24](index=24&type=chunk) - During the reporting period, **1,759,200 H shares** were repurchased for a total consideration of approximately **RMB 36,890 thousand**[25](index=25&type=chunk) - As of June 30, 2025, **3,219,200 treasury H shares** were held, available for the 2025 Share Award Scheme[25](index=25&type=chunk) Management Discussion and Analysis [Business Review](index=11&type=section&id=Business%20Review) The company has established a diversified product pipeline leveraging its innovative precision protein engineering and Fabite® bispecific antibody platforms, with core product LZ901 achieving significant clinical and safety progress and planned commercialization in China by 2026 - The Group has established innovative precision protein engineering and Fabite® bispecific antibody development platforms, enabling full drug development cycles[26](index=26&type=chunk) - LZ901 has submitted BLA to NMPA and been accepted, with commercialization in China expected in **2026**[29](index=29&type=chunk) - LZ901 head-to-head study showed superior cellular immunogenicity and better safety in adults aged 50 or above, outperforming Shingrix®[29](index=29&type=chunk) [R&D of Pipeline Products](index=11&type=section&id=R%26D%20of%20Pipeline%20Products) The company has multiple pipeline products in vaccines and antibodies, with core product LZ901 in BLA stage, K3 and K193 in clinical trials, and six preclinical products - The Group's innovative antigen presentation technology for vaccine development aims to enhance immunogenicity, improve safety, and patient vaccination experience[26](index=26&type=chunk) - The Fabite® platform features fully controllable mechanism of action and administration, optimizing purification and stability of bispecific antibodies[26](index=26&type=chunk) [LZ901](index=11&type=section&id=LZ901) LZ901, the world's first recombinant zoster vaccine with a tetramer molecular structure, has submitted BLA in China and is expected to be commercialized in 2026, with US Phase I clinical trials anticipated to complete in Q3 2025 - LZ901 is the world's first zoster vaccine with a tetramer molecular structure, having completed Phase III clinical trial enrollment in China and submitted BLA[28](index=28&type=chunk)[29](index=29&type=chunk) - Phase I clinical trials for LZ901 in the US are expected to be completed in **Q3 2025**[30](index=30&type=chunk) [K3](index=12&type=section&id=K3) K3, a biosimilar of adalimumab for autoimmune diseases, has completed Phase I clinical trials, with Phase III clinical trials expected to commence as early as H2 2026 - K3 is a recombinant human anti-tumor necrosis factor-α monoclonal antibody injection, a biosimilar to Humira® (adalimumab)[31](index=31&type=chunk) - K3 has completed Phase I clinical trials, with Phase III clinical trials expected to commence as early as **H2 2026**[31](index=31&type=chunk) [K193](index=12&type=section&id=K193) K193, the world's first CD19/CD3 bispecific antibody with an asymmetric structure for B-cell leukemia and lymphoma, is currently in Phase I clinical trials and expected to complete in 2026 - K193 is the world's first CD19/CD3 bispecific antibody with an asymmetric structure, for treating B-cell leukemia and lymphoma[32](index=32&type=chunk) - K193 is currently in Phase I clinical trials, expected to be completed in **2026**[32](index=32&type=chunk) [Other Preclinical Pipeline Products](index=13&type=section&id=Other%20Preclinical%20Pipeline%20Products) As of June 30, 2025, the company had six preclinical pipeline products, including recombinant vaccines and bispecific antibodies - The Group has six preclinical pipeline products, including recombinant varicella vaccine, recombinant RSV vaccine, recombinant HSV-1 vaccine, recombinant HSV-2 vaccine, K333 bispecific antibody, and K1932 bispecific antibody[33](index=33&type=chunk) [Product Pipeline Overview](index=13&type=section&id=Product%20Pipeline%20Overview) The company's product pipeline covers two major categories: vaccines and antibodies, including core products LZ901 (zoster vaccine), K3 (monoclonal antibody), and K193 (bispecific antibody), as well as multiple preclinical recombinant vaccines and bispecific antibodies - Product pipeline includes LZ901 (zoster vaccine, China BLA, US Phase I), K3 (monoclonal antibody, China Phase I), K193 (bispecific antibody, China Phase I), and multiple preclinical vaccines and antibodies[35](index=35&type=chunk) [R&D and Manufacturing Facilities](index=13&type=section&id=R%26D%20and%20Manufacturing%20Facilities) The company possesses comprehensive in-house product discovery capabilities, with 18 R&D staff, 57 manufacturing staff, and 57 quality management staff, operating R&D and manufacturing facilities in Beijing and Zhuhai, and constructing new facilities in Beijing - The Group's in-house R&D team consists of **18 personnel**, possessing comprehensive product discovery capabilities[37](index=37&type=chunk) - The Group has R&D and manufacturing facilities in Beijing and Zhuhai, and is constructing a new facility in Beijing with a total gross floor area of approximately **45,072.87 square meters**[39](index=39&type=chunk) - The manufacturing team and quality management team each consist of **57 personnel**, committed to complying with GMP standards and quality control requirements[39](index=39&type=chunk) [Future and Outlook](index=14&type=section&id=Future%20and%20Outlook) The company plans to actively advance the clinical development and commercialization of its pipeline drugs, especially core product LZ901, and expand its product pipeline - Plans to actively promote the clinical development of pipeline drugs, especially core product LZ901[42](index=42&type=chunk) - Plans to rapidly advance the development of other preclinical pipeline products and formulate domestic and international commercialization strategies[42](index=42&type=chunk) - Plans to expand the product pipeline through independent development and/or collaborations[42](index=42&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) The company's pre-tax loss narrowed by 29.4% year-on-year in H1, primarily due to significant reductions in administrative and R&D expenses, but other income and net other gains decreased, and finance costs sharply increased - Pre-tax loss decreased by **29.4%** from **RMB 109.9 million** to **RMB 77.6 million**[51](index=51&type=chunk) [Other Income](index=14&type=section&id=Other%20Income) Other income decreased by 50.2% to RMB 4.9 million, primarily due to reduced government grants - Other income decreased by **50.2%** to **RMB 4.9 million**, mainly due to reduced government grants[41](index=41&type=chunk) [Other Expenses](index=15&type=section&id=Other%20Expenses) Other expenses increased by 209.5% to RMB 0.6 million, reflecting increased costs of sold immunodiagnostic kits - Other expenses increased by **209.5%** to **RMB 0.6 million**, reflecting increased costs of sold immunodiagnostic kits[44](index=44&type=chunk) [Net Other Gains and Losses](index=15&type=section&id=Net%20Other%20Gains%20and%20Losses) Net other gains decreased by 61.6% to RMB 2.4 million, primarily due to reduced fair value gains on financial assets and decreased net foreign exchange gains - Net other gains decreased by **61.6%** to **RMB 2.4 million**, primarily due to reduced fair value gains on financial assets and decreased net foreign exchange gains[45](index=45&type=chunk) [Administrative Expenses](index=16&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 42.6% to RMB 25.8 million, mainly due to no share-based payment amortization expense in 2025 - Administrative expenses decreased by **42.6%** to **RMB 25.8 million**, mainly due to no share-based payment amortization expense in 2025[48](index=48&type=chunk) [Research and Development Expenses](index=16&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased by 37.5% to RMB 50.3 million, primarily due to reduced expenses for LZ901 Phase III clinical trials - R&D expenses decreased by **37.5%** to **RMB 50.3 million**, primarily due to reduced expenses for LZ901 Phase III clinical trials[49](index=49&type=chunk) [Finance Costs](index=16&type=section&id=Finance%20Costs) Finance costs increased by 584.7% to RMB 2.7 million, primarily due to obtaining additional bank loans - Finance costs increased by **584.7%** to **RMB 2.7 million**, primarily due to obtaining additional bank loans[50](index=50&type=chunk) [Loss Before Tax](index=16&type=section&id=Loss%20Before%20Tax) Loss before tax decreased by 29.4% to RMB 77.6 million, primarily benefiting from reduced administrative and R&D expenses - Loss before tax decreased by **29.4%** to **RMB 77.6 million**[51](index=51&type=chunk) [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) The company and its Chinese subsidiaries incurred no income tax expense during the reporting period due to tax losses - No income tax expense was incurred during the reporting period as the Group recorded a loss[52](index=52&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) The company's bank balances and cash decreased due to share repurchases, while bank borrowings significantly increased, leading to a rise in the gearing ratio to 31.2%, and capital expenditures decreased due to project completion - Bank balances and cash decreased by **RMB 39.9 million** to **RMB 100.2 million**, primarily due to share repurchases[53](index=53&type=chunk) - Bank borrowings increased to **RMB 207.3 million**, of which **RMB 11.5 million** is repayable within one year[54](index=54&type=chunk) - Gearing ratio increased from **18.7%** at the end of 2024 to **31.2%** as of June 30, 2025[58](index=58&type=chunk) [Bank Balances and Cash](index=16&type=section&id=Bank%20Balances%20and%20Cash) Bank balances and cash (including time deposits) decreased by approximately RMB 39.9 million to RMB 100.2 million, primarily due to share repurchases - Bank balances and cash decreased by approximately **RMB 39.9 million** to **RMB 100.2 million**, primarily due to share repurchases[53](index=53&type=chunk) [Bank Borrowings](index=17&type=section&id=Bank%20Borrowings) Bank borrowings increased to approximately RMB 207.3 million, with approximately RMB 11.5 million repayable within one year, secured by property and/or guarantees from controlling shareholders, and approximately RMB 397.7 million in unutilized bank facilities - Bank borrowings increased to approximately **RMB 207.3 million**, of which approximately **RMB 11.5 million** is repayable within one year[54](index=54&type=chunk) - Borrowings are secured by the Group's properties and/or guaranteed by Mr. Kong and Ms. Zhang, executive directors and controlling shareholders[54](index=54&type=chunk) - As of June 30, 2025, approximately **RMB 397.7 million** of bank facilities remained unutilized[54](index=54&type=chunk) [Pledge of Assets](index=17&type=section&id=Pledge%20of%20Assets) The Group's properties, including offices, laboratories, production bases, and construction in progress, have been pledged as security for bank borrowings and bank facilities - Properties have been pledged as security for bank borrowings and bank facilities[56](index=56&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities[57](index=57&type=chunk) [Gearing Ratio](index=17&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio was 31.2%, an increase from 18.7% at the end of 2024 - Gearing ratio increased from **18.7%** as of December 31, 2024, to **31.2%** as of June 30, 2025[58](index=58&type=chunk) [Capital Commitments](index=17&type=section&id=Capital%20Commitments) Capital commitments decreased from approximately RMB 38.3 million to RMB 7.4 million, primarily due to the completion of certain construction projects - Capital commitments decreased from approximately **RMB 38.3 million** to approximately **RMB 7.4 million**, primarily due to the completion of certain construction projects[59](index=59&type=chunk) [Foreign Exchange](index=18&type=section&id=Foreign%20Exchange) The company primarily faces foreign exchange risks related to HKD and did not enter into any currency hedging transactions during the reporting period - The Group primarily faces foreign exchange risks related to HKD and did not enter into any currency hedging transactions[60](index=60&type=chunk) [Significant Investments, Acquisitions and Disposals](index=18&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) During the reporting period, the Group had no significant investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures - During the reporting period, the Group had no significant investments, acquisitions, or disposals[61](index=61&type=chunk) [Future Plans for Material Investments or Capital Assets](index=18&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had no specific plans for material capital expenditures, investments, or capital assets - As of June 30, 2025, the Group had no specific plans for material capital expenditures, investments, or capital assets[62](index=62&type=chunk) Other Information [Interim Dividend](index=18&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[63](index=63&type=chunk) [Use of Net Proceeds from Global Offering](index=18&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) The total net proceeds from the global offering amounted to approximately HKD 241.6 million; as of June 30, 2025, HKD 1.3 million was used for working capital, with HKD 105.0 million remaining unutilized and expected to be fully utilized by the end of 2027 - Total net proceeds from the global offering amounted to approximately **HKD 241.6 million**[64](index=64&type=chunk) Use of Net Proceeds from Global Offering (HKD millions) | Use of Proceeds | Net Proceeds Allocation (%) | Unutilized Amount as of Dec 31, 2024 | Amount Utilized for Six Months Ended June 30, 2025 | Unutilized Amount as of June 30, 2025 | Expected Timeline for Full Utilization of Remaining Global Offering Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | For clinical development, manufacturing and commercialization of core product LZ901 | 58.2 | 46.0 | – | 46.0 | By end of 2026 | | To fund ongoing and planned clinical trials for LZ901 in China and the US | 40.2 | 2.3 | – | 2.3 | By end of 2026 | | To fund commercial manufacturing of LZ901 | 6.0 | 14.6 | – | 14.6 | By end of 2026 | | To fund marketing and sales activities | 12.0 | 29.1 | – | 29.1 | By end of 2026 | | For clinical development and manufacturing of K3 | 22.1 | 53.4 | – | 53.4 | By end of 2027 | | To fund planned clinical trials for K3 | 16.1 | 38.8 | – | 38.8 | By end of 2026 | | To fund commercial manufacturing of K3 | 6.0 | 14.6 | – | 14.6 | By end of 2027 | | For construction of Zhuhai Phase II commercial production facility | 16.1 | 0.1 | – | 0.1 | By end of 2026 | | For working capital and other general corporate purposes | 3.6 | 6.8 | 1.3 | 5.5 | By end of 2026 | | **Total** | **100.0** | **106.3** | **1.3** | **105.0** | | - As of June 30, 2025, **HKD 1.3 million** was used for working capital, with **HKD 105.0 million** remaining unutilized and expected to be fully utilized by the end of **2027**[65](index=65&type=chunk)[67](index=67&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 197 full-time employees, offering competitive remuneration, bonuses, and promotion opportunities through an evaluation system, while emphasizing employee training and social insurance contributions - As of June 30, 2025, the Group employed **197 full-time employees**[68](index=68&type=chunk) - The company determines remuneration, bonuses, and promotions through an evaluation system, provides training, and contributes to social insurance and housing provident funds[68](index=68&type=chunk)[69](index=69&type=chunk) [Employee Incentive Schemes](index=20&type=section&id=Employee%20Incentive%20Schemes) The company has a pre-IPO employee incentive scheme and a 2025 Share Award Scheme to motivate and retain talent; the 2025 scheme was approved by shareholders and effective, with 19,922,983 H shares available for granting at period-end - The company has a pre-IPO employee incentive scheme that does not involve granting new shares[70](index=70&type=chunk) - The 2025 Share Award Scheme was approved by shareholders and became effective, aiming to provide ownership interests and incentivize contributions[71](index=71&type=chunk) - As of June 30, 2025, **19,922,983 H shares** remained available for granting under the 2025 Share Award Scheme[71](index=71&type=chunk) [Pre-IPO Employee Incentive Scheme](index=20&type=section&id=Pre-IPO%20Employee%20Incentive%20Scheme) This scheme, adopted on December 15, 2021, does not involve granting new shares, with eligible participants granted interests in the employee incentive platform Hengqin Luzhu Limited Partnership - The pre-IPO employee incentive scheme was adopted on December 15, 2021, and does not involve granting new shares[70](index=70&type=chunk) [2025 Share Award Scheme](index=20&type=section&id=2025%20Share%20Award%20Scheme) This scheme was approved by shareholders on June 12, 2025, and became effective on June 13, aiming to provide ownership interests and incentivize contributions; as of the reporting period end, 19,922,983 H shares were available for granting, but no awards had been granted - The 2025 Share Award Scheme was approved by shareholders on June 12, 2025, and became effective on June 13[71](index=71&type=chunk) - As of June 30, 2025, **19,922,983 H shares** remained available for granting, but no awards had been granted[71](index=71&type=chunk) [Corporate Governance](index=21&type=section&id=Corporate%20Governance) The company complies with the Corporate Governance Code in Appendix C1 of the Listing Rules; despite the Chairman and CEO being the same person, the Board believes sufficient checks and balances are in place, and corporate governance practices will be regularly reviewed and strengthened - The company's corporate governance practices are based on the Corporate Governance Code in Appendix C1 of the Listing Rules[72](index=72&type=chunk) - The Chairman and CEO are the same person, but the Board believes there are sufficient checks and balances to protect the Group's and shareholders' interests[72](index=72&type=chunk) [Compliance with Model Code for Securities Transactions](index=21&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code set out in Appendix C3 of the Listing Rules, all directors and supervisors have confirmed compliance, and no breaches by relevant employees were identified - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules[74](index=74&type=chunk) - All directors and supervisors have confirmed compliance with the Model Code, and no breaches by relevant employees were identified[74](index=74&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, the company repurchased 1,759,200 H shares for approximately HKD 39.7 million, holding 3,219,200 treasury H shares for the 2025 Share Award Scheme, and further repurchased 316,600 H shares after the reporting period - During the reporting period, the company repurchased a total of **1,759,200 H shares** for approximately **HKD 39.7 million**[75](index=75&type=chunk) - As of June 30, 2025, the company held a total of **3,219,200 treasury H shares**, available for the 2025 Share Award Scheme[76](index=76&type=chunk) - After the reporting period, the company further repurchased **316,600 H shares** in July 2025 for approximately **HKD 6.8 million**[76](index=76&type=chunk) [Events After Reporting Period](index=22&type=section&id=Events%20After%20Reporting%20Period) Other than those disclosed in this announcement, no significant events affecting the Group occurred from June 30, 2025, up to the date of this announcement - No significant events affecting the Group occurred after the reporting period, other than those disclosed[77](index=77&type=chunk) [Review of Interim Results](index=22&type=section&id=Review%20of%20Interim%20Results) The Audit Committee has reviewed the interim results and deemed them compliant with accounting standards and disclosure requirements; independent auditor Deloitte Touche Tohmatsu has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements - The Audit Committee has reviewed the interim results and deemed them compliant with applicable accounting standards, rules, and regulations[78](index=78&type=chunk) - Independent auditor Deloitte Touche Tohmatsu has reviewed the interim financial information[78](index=78&type=chunk) [Publication of Interim Results and Interim Report](index=23&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course - This announcement has been published on the HKEX website and the company's website[79](index=79&type=chunk) - The interim report will be dispatched to shareholders and published on the HKEX website and the company's website in due course[79](index=79&type=chunk) Definitions [Content of Definitions](index=23&type=section&id=Content%20of%20Definitions) This section provides definitions for key terms and abbreviations used in the report, ensuring consistent understanding of the report's content - This section provides definitions for key terms and abbreviations used in the report, such as BLA (Biologics License Application), FDA (U.S. Food and Drug Administration), and GMP (Good Manufacturing Practice)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對任何就因本公告全部或任何部份內容而產生 或因倚賴該等內容而引致的任何損失承擔責任。 China Jinmao Holdings Group Limited 中國金茂控股集團有限公 司 （於香港註冊成立的有限公司） （股票代號：00817） 截至2025年6月30日止六個月中期業績公告 董事會欣然宣佈本公司及其附屬公司截至2025年6月30日止六個月的未經審核中 期業績。本公告列載本公司2025年中期報告全文，並符合《香港聯合交易所有限 公司證券上市規則》中有關中期業績公告的披露要求。本公司2025年中期報告的 印刷版本將於2025年9月底或之前寄發予本公司的股東，並可於其時在香港交易 所披露易網站 www.hkexnews.hk 及本公司的網站 www.chinajinmao.cn 上閱覽。 董事會決議向本公司股東派發中期股息每股3港仙，並向股東提供以股代息的選 擇。中期股息將於2025年10月31日（星期五）或之前派發予各股東。本公司將就 中期股息刊發暫停辦理股份過戶登記的公告。根 ...

Financial Performance - Revenue for the six months ended June 30, 2025, reached RMB 605.8 million, a decrease of 15.9% year-on-year[4] - Adjusted net profit for the same period was RMB 33.1 million, compared to a loss of RMB 17.0 million in the previous year, marking a turnaround from loss to profit[5] - Operating loss improved to RMB 65.6 million, a reduction of 68.8% compared to the previous year's loss of RMB 210.4 million[4] - Net cash outflow from operating activities was approximately RMB 42.8 million, a decrease of 74.0% year-on-year[6] - Total revenue for the six months ended June 30 was RMB 605.8 million, a decrease of 15.9% compared to RMB 720.1 million in the same period last year[35] - Gross profit for the period was RMB 486.0 million, a decrease of 15.9%, with a stable gross margin of 80.2%[38] - The company recorded a profit before tax of RMB 9.6 million, compared to a loss of RMB 116.3 million in the same period last year[48] - Net profit for the period was approximately RMB 13.7 million, a turnaround from a loss of RMB 115.4 million in the previous year[50] - The net profit for the period is RMB 13,748,000, compared to a loss of RMB 115,369,000 in the previous year, representing a significant improvement of 111.9%[54] - Adjusted net profit for the period is RMB 33,119,000, a turnaround from a loss of RMB 16,962,000, reflecting a change of 295.3%[54] Market Overview - The Chinese real estate market saw a total sales area of 458.51 million square meters in the first half of 2025, down 3.5% year-on-year, with total sales value at RMB 442.41 billion, a decline of 5.5%[7] - The global real estate technology market is projected to grow from USD 36.55 billion in 2024 to USD 88.37 billion by 2032, with a compound annual growth rate of 11.9%[11] Product and Service Performance - Cloud services revenue for the first half of 2025 was RMB 524.7 million, a year-on-year decrease of 14.3% from RMB 612.2 million in the same period of 2024, accounting for 86.6% of total revenue[17] - Customer relationship management product line generated total revenue of RMB 383.4 million, down 13.1% year-on-year from RMB 441.3 million, with the cloud customer product contributing RMB 376.7 million, a decrease of 5.1%[19] - Project construction product line recorded total revenue of RMB 46.6 million, a year-on-year decline of 25.5% from RMB 62.5 million, with the number of construction sites equipped with the product decreasing by 28.0% to 5,264[21] - Asset management and operation product line achieved revenue of RMB 47.2 million, a year-on-year increase of 2.0% from RMB 46.3 million, with a customer account retention rate of 90%[23] - The Tianji PaaS platform generated total revenue of RMB 47.5 million, down 23.5% year-on-year from RMB 62.1 million, with approximately 1,200 existing cooperative clients[24] - In the first half of 2025, revenue from localized software and services was RMB 81.1 million, a year-on-year decrease of 24.8% compared to RMB 107.9 million in the same period of 2024[25] Strategic Initiatives - The company aims to support residential developers in creating "good houses" through digital capabilities as part of the national strategy[8] - The company plans to leverage its accumulated technical capabilities in real estate digitization to expand into more overseas markets[12] - AI integration into the real estate management business is expected to enhance operational efficiency and decision-making processes[13] - The company has launched multiple AI applications aimed at the real estate marketing sector, establishing a strong product barrier[14] - The company plans to focus on core products and key customers in the domestic market to enhance profitability, while limiting high-risk project contracts[30] - The company aims to accelerate its global market presence by entering the Middle East and European markets, alongside strengthening its foothold in Japan, Southeast Asia, and Hong Kong[31] - The company will prioritize AI and SaaS product innovation, integrating AI technology into existing offerings to enhance customer acquisition and sales conversion rates[32] - The company is committed to optimizing resource allocation and talent management to improve operational efficiency and reduce costs through AI tools[33] Cost Management - Sales and marketing expenses for the first half of 2025 were approximately RMB 317.2 million, a decrease of 22.2% from RMB 407.8 million in the same period of 2024[28] - Research and development expenses were approximately RMB 204.7 million, down 19.4% from RMB 254.1 million in the same period of 2024[28] - Employee benefit expenses for the six months ended June 30, 2025, were RMB 382,781 thousand, a decrease of 22.6% from RMB 494,595 thousand in 2024[86] Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the company's accounting principles and internal controls, ensuring compliance with applicable accounting standards and regulations[108] - The independent auditor, Ernst & Young, reviewed the interim financial information for the six months ending June 30, 2025, confirming its adherence to international review standards[109] Employee Management - As of June 30, 2025, the company had 1,604 employees, a decrease of 16.1% from 1,912 employees as of December 31, 2024[106] - The company provides competitive salaries, bonuses, and share-based compensation to employees, particularly key personnel[106] - The company plans to continue granting share-based incentive awards to motivate employees to contribute to its growth and development[106]

Financial Performance - Revenue for the period was approximately RMB 47.57 billion, an increase of 34.6% year-on-year[3] - Gross margin was approximately 10.6%, a decrease of 3.1 percentage points year-on-year[3] - Profit attributable to equity holders was approximately RMB 1.37 billion, a decrease of 25.2% year-on-year[3] - Core net profit was approximately RMB 1.52 billion, a decrease of 12.7% year-on-year[3] - Total revenue for the six months ended June 30, 2025, was RMB 51,269,904 thousand, representing an increase from RMB 37,879,083 thousand for the same period in 2024, reflecting a growth of approximately 35.4%[25][30] - Revenue from real estate development reached RMB 44,027,345 thousand for the six months ended June 30, 2025, compared to RMB 32,796,336 thousand in the prior year, marking a significant increase of about 34.3%[25][30] - The group reported a total segment profit of RMB 3,090,514 thousand for the six months ended June 30, 2025, slightly down from RMB 3,103,540 thousand in the same period of 2024, indicating a decrease of approximately 0.4%[28] - The company reported a pre-tax profit of RMB 4,154,197 thousand for the six months ended June 30, 2025, compared to RMB 3,823,741 thousand in the same period of 2024, indicating an increase of approximately 8.7%[28] Sales and Contracted Sales - Cumulative contracted sales amounted to approximately RMB 61.50 billion, an increase of 11.0% year-on-year, achieving 51.0% of the annual target of RMB 120.5 billion[3] - The cumulative contracted sales area for the first half of 2025 was approximately 1.46 million square meters, a decrease of 22.2% year-on-year, with an average price of RMB 42,100 per square meter, up 42.7% year-on-year[86] - The company recorded contract sales of approximately RMB 61.5 billion, a year-on-year increase of 11.0%, completing 51.0% of the annual contract sales target of RMB 120.5 billion[68] Cash Flow and Liquidity - Cash and bank balances totaled approximately RMB 44.64 billion, with a net cash inflow from operating activities during the period[4] - Net cash generated from operating activities was RMB 4,101,710 thousand for the six months ended June 30, 2025, down from RMB 6,130,253 thousand in the same period of 2024, a decrease of about 33%[15] - The company reported a net cash outflow from financing activities of RMB 9,331,341 thousand for the six months ended June 30, 2025, compared to RMB 4,147,345 thousand in the same period of 2024, indicating a significant increase in cash used[17] - The company’s cash and bank balances decreased to RMB 42,253,342 thousand from RMB 45,950,323 thousand, reflecting a decline of about 8%[17] - The group’s operating cash income and committed bank financing were the main sources of liquidity, with a current ratio of 1.6 times as of June 30, 2025[106] Debt and Financing - The company maintained a "green" status under the "three red lines" policy, with a debt-to-asset ratio of 64.6% and a net gearing ratio of 53.2%[4] - The weighted average borrowing rate was 3.16%, a decrease of 41 basis points year-on-year[4] - Total liabilities decreased from RMB 306,373,816 thousand as of December 31, 2024, to RMB 272,437,763 thousand, indicating a reduction of approximately 11%[13] - The total liabilities to equity ratio improved from 2.94 as of December 31, 2024, to 2.45 as of June 30, 2025, indicating a stronger equity position relative to liabilities[13] - The group completed new financing of approximately RMB 23.43 billion in the first half of 2025, with domestic financing of RMB 19.85 billion and overseas financing of RMB 3.58 billion[104] Investment and Land Acquisition - The company acquired 13 new land parcels in six cities, with a total construction area of approximately 1.48 million square meters, all located in first- and second-tier cities[3] - As of June 30, 2025, the company held total land reserves of approximately 20.43 million square meters, with 94% located in first- and second-tier cities[70] - The total land reserve as of June 30, 2025, was approximately 20.43 million square meters, with the Greater Bay Area, East China, Central and Western regions, Northern regions, and Haikou accounting for approximately 39.2%, 18.8%, 25.7%, 15.8%, and 0.5% of the total building area respectively[92] Operational Efficiency - The company aims to enhance operational capabilities and deepen organizational transformation to improve efficiency and reduce costs[78] - The company will continue to implement precise marketing strategies and pricing strategies to adapt to market changes and ensure the achievement of annual sales and cash collection targets[78] - The company launched four product series standard guidelines to enhance product standardization and brand building[73] Market Outlook - The overall real estate market in China showed signs of structural recovery, with a 3.5% decrease in sales area and a 5.5% decrease in sales value year-on-year, indicating a narrowing decline compared to the same period in 2024[65] - The company anticipates continued economic support measures from the central government to stabilize financial markets and promote economic growth amid challenges such as the real estate market and fluctuating RMB exchange rates[114] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the six months ending June 30, 2025[117] - The company did not repurchase, sell, or redeem any of its listed securities during the six months ending June 30, 2025[119]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Beijing Enterprises Urban Resources Group Limited 北控城市資源集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3718） 截至2025年6月30日止六個月之中期業績公告 摘要 1 • 本集團截至2025年6月30日止六個月錄得收入約人民幣30.393億元，相較於 截至2024年6月30日止六個月收入約人民幣26.878億元，上升約13.1%。 • 截至2025年6月30日止六個月，本公司股東應佔溢利為約人民幣3,250萬 元，相較於截至2024年6月30日止六個月約人民幣1.285億元，下降約 74.7%。該減少主要由於截至2025年6月30日止六個月確認的非流動資產減 值虧損撥備人民幣1.615億元所致。減值虧損撥備為一次性非現金開支，對 本集團的現金流量並無影響。 • 本集團的財務狀況及現金流維持良好，生產及經營維持正常順暢。截至 202 ...

Financial Performance - Revenue for the first half of 2025 was HKD 5.567 billion, slightly down from HKD 5.572 billion in 2024[4] - The unaudited profit attributable to unit holders was HKD 1.01 billion, an increase from HKD 947 million in 2024, representing a growth of approximately 6.5%[13] - The group’s EBITDA for the first half of 2025 was HKD 3.979 billion, compared to HKD 3.989 billion in 2024, indicating a slight decrease[13] - Net profit for the same period was HKD 1.001 billion, an increase from HKD 0.947 billion in 2024, representing a growth of approximately 5.7%[24] - The total distributable income for the period was HKD 1.48 billion, consistent with the previous year[14] - Operating profit for the period was HKD 2,344 million, down from HKD 2,490 million in 2024, representing a decrease of 5.9%[37] - Total comprehensive income attributable to shareholders for the same period was HKD 646 million, down 33.6% from HKD 974 million in 2024[39] - The pre-tax profit for the six months ended June 30, 2025, was HKD 1,666 million, down from HKD 1,816 million in the same period of 2024[66] Distribution and Dividends - The interim distribution declared was HKD 1.408 billion, with an interim distribution per unit of HKD 0.1594, unchanged from 2024[14] - The total distribution amount for the period was HKD 1,408 million, unchanged from the previous year, maintaining a consistent distribution policy[26] - The company paid dividends totaling HKD 1,422 million during the period, consistent with the previous year[46] - The interim distribution for the year 2025 is set at HKD 0.1594 per unit, payable on September 8, 2025[128] Capital Expenditure and Investment - The capital investment plan for 2024-2028 is valued at HKD 22 billion, aimed at supporting Hong Kong's zero-carbon transition[12] - Total capital expenditure for the period was HKD 1.482 billion, up from HKD 1.375 billion in 2024, indicating an increase of 7.8%[28] - The company has approved and contracted capital expenditures for property, plant, and equipment amounting to 8,701 million as of June 30, 2025, up from 7,437 million at the end of 2024, representing an increase of approximately 17%[78] - The company has approved but not yet contracted capital expenditures for property, plant, and equipment totaling 15,175 million as of June 30, 2025, down from 17,967 million at the end of 2024, indicating a decrease of about 15.6%[78] Operational Efficiency and Reliability - The group achieved a reliability rate of over 99.9999%, with an average of less than half a minute of unplanned outages per customer annually[12] - The company is actively enhancing its power system reliability through emergency recovery drills and the establishment of new substations in the Eastern and Southern districts[17] - The smart meter installation project aims to cover 600,000 customers, with over 90% already completed and expected to finish by the end of 2025[15] - The company is actively implementing major projects, including the construction of a new gas combined cycle generator unit[12] Market and Sales Performance - Electricity sales volume in the first half of 2025 decreased by 3.2% compared to the same period in 2024, attributed to milder weather and successful energy-saving initiatives[16] - The basic electricity tariff was raised by 3.4 HKD cents to HKD 1.229 per kWh due to increased capital investment and operating costs[16] - The fuel adjustment fee decreased by over 16% in August 2025 compared to January 2025, leading to a net electricity tariff reduction of 4.4% to HKD 1.596 per kWh[16] - For the six months ended June 30, 2025, the group's revenue from electricity sales was HKD 5,537 million, a slight decrease of 0.4% from HKD 5,558 million in 2024[54] Financial Position and Debt - The net debt of the trust group as of June 30, 2025, was HKD 513.41 billion, compared to HKD 508.25 billion on December 31, 2024, reflecting a slight increase of 1.4%[31] - The trust group maintained a net debt to total equity ratio of 51% as of June 30, 2025, consistent with the ratio on December 31, 2024[31] - Total borrowings increased to HKD 24,196 million as of June 30, 2025, compared to HKD 23,738 million at the end of 2024, indicating a rise in leverage[68] - The total outstanding financial derivative contracts amounted to HKD 544.91 billion as of June 30, 2025, an increase from HKD 495.58 billion on December 31, 2024[33] Corporate Governance - The company has adhered to the corporate governance code applicable to the trust and the company for the six months ended June 30, 2025, except as noted[102] - The audit committee has reviewed the unaudited consolidated financial statements of the trust and the unaudited financial statements of the trustee-manager for the six months ended June 30, 2025[109] - The company is committed to maintaining high standards of corporate governance to attract investment and protect stakeholders' interests[102] - The board consists of 17 directors, including 5 executive directors, 6 non-executive directors, and 6 independent non-executive directors, complying with the requirement that independent non-executive directors represent at least one-third of the total number of directors[104] Future Outlook and Strategic Initiatives - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 10% to 12%[133] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[132] - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[133] - Market expansion plans include entering two new international markets by the end of the year, which could increase market share by 5%[131]

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 12,278.1 million, an increase of 8.3% compared to RMB 11,335.1 million in 2024[3] - Adjusted EBIT for the period was RMB 1,359.2 million, reflecting a growth of 6.9% from RMB 1,271.9 million in 2024[3] - Adjusted EBITDA reached RMB 1,787.4 million, a 6.2% increase compared to RMB 1,682.5 million in the same period last year[3] - Operating profit for the six months was RMB 1,356.4 million, compared to RMB 1,268.9 million in 2024[6] - Net profit for the period was RMB 978.1 million, slightly up from RMB 965.5 million in the previous year[6] - Basic and diluted earnings per share increased to RMB 20.66 from RMB 20.21[6] - Total revenue for the six months ended June 30, 2025, was RMB 12,278,061,000, representing an increase of 8.3% compared to RMB 11,335,111,000 for the same period in 2024[14] - The company reported a pre-tax profit of RMB 577,845,000 for the six months ended June 30, 2025, compared to RMB 565,232,000 for the same period in 2024, reflecting a slight increase of 2.3%[25] - The basic earnings per share for the six months ended June 30, 2025, was RMB 0.206, compared to RMB 0.202 for the same period in 2024[25] Assets and Cash Position - Total assets as of June 30, 2025, were RMB 18,749.2 million, compared to RMB 17,546.4 million at the end of 2024[7] - Cash and cash equivalents increased to RMB 5,046.9 million from RMB 4,014.4 million at the end of 2024[8] - As of June 30, 2025, the company had unencumbered cash and cash equivalents totaling approximately RMB 5.047 billion, up from RMB 4.014 billion at the end of 2024[53] - The company reported a net cash position of approximately RMB 5.047 billion with a leverage ratio of zero as of June 30, 2025[55] Dividends - The company did not declare an interim dividend for the period, consistent with the previous year[3] - The company declared a final dividend of RMB 427,975,000 for the year ending December 31, 2024, compared to RMB 413,989,000 for the previous year, marking an increase of 3.9%[23] - The company did not declare an interim dividend for the period ending June 30, 2024[61] Operational Highlights - Revenue from carbonated beverages was RMB 9,384,629,000, up from RMB 8,577,161,000, indicating a growth of 9.4% year-over-year[14] - The sales volume increased by 5.5% year-on-year, contributing to the overall revenue growth[33] - The gross profit margin improved to 38.1%, up by 3.5 percentage points from 34.6% in the previous year[3] - The gross profit margin improved by 3.5 percentage points, benefiting from a decrease in raw material procurement prices despite ongoing high aluminum costs[35] - The company maintained a market share of over 50% in the soda category, driven by double-digit growth in the no-sugar segment[36] - The juice category's overall revenue grew by 1% despite challenges in the low-concentration juice market, aided by strategic price increases[37] - The water category saw sales volume increase by over 20% year-on-year, leading to high single-digit revenue growth[39] - The company plans to focus on high-quality development in the water category and expand its product offerings in the soda water segment[39] - The core brand "Monster" achieved a significant sales breakthrough with nearly 50% year-on-year growth, leading the domestic market[42] - The online sales business "COFCO Enjoy" expanded its brand partnerships to 18, enhancing its non-cola market share and achieving double-digit revenue growth year-on-year[43] - The smart retail business "COFCO Smart" maintained the industry-leading position with over 31 provinces covered and more than 350 cities, driving significant revenue growth[44] Cost and Expenses - Interest expenses on lease liabilities decreased to RMB 1,822,000 from RMB 2,572,000, a reduction of 29.2%[19] - Income tax expenses rose by 24.9% to RMB 379 million, following a self-inspection by several subsidiaries[52] - Gross margin improved due to a decrease in most raw material procurement prices, partially offsetting the cost pressure from high aluminum prices[48] Corporate Governance - The company has adopted the Corporate Governance Code and has complied with all applicable code provisions, except for C.2.1 regarding the roles of the chairman and CEO until January 6, 2025[62] - After January 6, 2025, the roles of chairman and CEO have been separated, ensuring compliance with the Corporate Governance Code[63] - The company and its subsidiaries did not purchase, sell, or redeem any of the company's listed securities during the interim period[65] Other Information - The company received government grants totaling RMB 62,720,000 during the period, down from RMB 73,993,000 in the previous year[18] - The company has no significant reliance on any single customer, with no customer contributing 10% or more to total revenue during the reporting period[17] - There were no significant post-period events as of the announcement date[67] - The interim financial information for the six months ending June 30, 2025, has been reviewed by the company's auditors[66] - The company aims to enhance customer experience and operational efficiency through a comprehensive digital upgrade strategy[34] - The company is committed to sustainable high-quality development, with a focus on reducing energy consumption and emissions[34] - The company is actively promoting new product launches, such as the "Sprite No Sugar Ice Lemon Berry," targeting younger consumer demographics[36] - The company launched a new product "COSTA Light Black Coffee," targeting health-conscious consumers with a 0-fat feature and balanced fruity flavor[40] - The company plans to enhance product structure and optimize business combinations to improve gross margins amid external uncertainties[46]

Financial Performance - For the six months ended June 30, 2025, the company's revenue was RMB 5,705.2 million, representing a year-over-year increase of 6.4%[12]. - The net profit for the same period was RMB 507.6 million, reflecting a year-over-year decrease of 37.4%[16]. - The gross profit margin decreased to 16.6%, down 8.0 percentage points year-over-year[16]. - The EBITDA for the first half of 2025 was RMB 791.0 million, a decline of 33.8% compared to the previous year[16]. - Revenue for the reporting period was approximately RMB 5,705.2 million, a year-on-year increase of 6.4%, while gross profit decreased by 28.2% to RMB 947.5 million[22]. - Profit attributable to the owners of the company was approximately RMB 507.6 million, down 37.4% year-on-year[22]. - Operating profit for the six months ended June 30, 2025, was approximately RMB 507.1 million, a decrease of 44.4% compared to RMB 911.3 million for the same period in 2024[91]. - The company's gross profit decreased by 28.2% year-on-year to approximately RMB 947.5 million, with the gross margin dropping from 24.6% to 16.6%, a decline of 8.0 percentage points[83]. - The company’s total comprehensive income for the same period fell to approximately RMB 498.0 million, a decrease of 40.2% compared to approximately RMB 832.7 million in the previous year, mainly due to reduced gross profit[95]. Assets and Liabilities - The total assets as of June 30, 2025, amounted to RMB 10,984.2 million, an increase from RMB 10,654.7 million as of December 31, 2024[14]. - The total liabilities decreased to RMB 4,245.8 million from RMB 4,575.9 million as of December 31, 2024[14]. - As of June 30, 2025, the company's cash and cash equivalents amounted to approximately RMB 385.6 million, a decrease of approximately RMB 312.3 million from RMB 697.9 million as of December 31, 2024, primarily due to dividend payments of approximately RMB 285.0 million[96]. - Trade receivables increased by approximately RMB 320.7 million to RMB 2,341.3 million as of June 30, 2025, attributed to longer collection periods from direct sales to automotive manufacturers[100]. - Inventory as of June 30, 2025, was approximately RMB 2,043.9 million, an increase of approximately RMB 101.0 million from RMB 1,942.9 million as of December 31, 2024, due to preemptive stockpiling in response to international market changes[99]. - The company's bank borrowings as of June 30, 2025, were approximately RMB 703.8 million, a slight decrease from RMB 755.3 million as of December 31, 2024, with a floating rate proportion of 32.7% and fixed rate of 67.3%[96]. - The current ratio as of June 30, 2025, was approximately 1.6, compared to 1.4 as of December 31, 2024, indicating improved liquidity[98]. - The capital to debt ratio increased to 5.1% as of June 30, 2025, from 1.7% as of December 31, 2024, reflecting a significant change in the company's financial leverage[107]. Market and Sales Performance - The domestic automobile production and sales reached 15.62 million and 15.65 million units, respectively, with year-over-year growth of 12.5% and 11.4%[17]. - The tire export volume was 349 million units, showing a year-over-year increase of 5.5%, with export value reaching RMB 83.45 billion, up 4.9%[17]. - The penetration rate of new energy vehicles in the domestic market reached 44.3%, with production and sales of 6.968 million and 6.937 million units, respectively, reflecting year-over-year growth of 41.4% and 40.3%[19]. - The company sold approximately 14.1 million tires in the first half of 2025, representing a year-on-year increase of 2.8%[22]. - Domestic dealer channel revenue decreased by 18.3% to RMB 1,017.3 million, while international dealer channel revenue increased by 10.9% to RMB 3,895.8 million[23]. - International marketing revenue reached approximately RMB 3,895.8 million, a year-on-year increase of about 10.9% compared to RMB 3,511.9 million in the same period of 2024[33]. - Direct sales to automotive manufacturers generated revenue of approximately RMB 791.7 million, representing a 30.5% increase from RMB 606.9 million in the same period of 2024[37]. Operational Efficiency and Innovation - The company completed 97 Lean Six Sigma projects, significantly improving operational efficiency through process optimization and defect rate reduction[26]. - The company is advancing automation logistics projects, expecting to enhance sorting and packaging capacity to over 30,000 tires per day[27]. - The company is focusing on sustainable supply chain development, implementing EcoVadis for supplier management starting in 2025[28]. - The group expanded its channel network by adding 1,161 new stores and developing 14 new first-level distributors in the first half of 2025[31]. - The group upgraded its digital sales system, enhancing operational capabilities and customer service efficiency through various digital tools[31]. - The group’s online sales achieved a historical high, growing by 37% year-on-year, outpacing the industry average[31]. - The company is focusing on enhancing internal efficiency and innovation capabilities through organizational restructuring and digital transformation[59]. - The company is advancing its "smart factory" strategy, emphasizing the implementation of the MES system for non-road tires and exploring AI applications[61]. - The company completed the full implementation of the Manufacturing Execution System (MES) for air spring manufacturing, achieving digital control of the entire production process[62]. Product Development and R&D - The group completed 341 new product development projects, including the successful launch of the "Colorful Elf" series tires, which cater to personalized customer needs[55]. - The company launched 354 innovative products during the reporting period, including 47 full-steel radial tires and 307 semi-steel radial tires, enhancing its product line and market competitiveness[65]. - The total sales volume of new products reached 486.5 thousand units, accounting for 34.4% of total sales volume of 1,414.8 thousand units[69]. - The company's R&D expenses increased by approximately 2.8% to RMB 111.7 million, mainly due to rising labor costs[86]. Corporate Governance and Shareholder Information - The audit committee reviewed the unaudited interim results for the six-month period ending June 30, 2025, and confirmed compliance with relevant accounting standards[179]. - The company has maintained compliance with the corporate governance code during the reporting period[176]. - The board views the annual general meeting as a crucial communication opportunity with shareholders, held on May 23, 2025[181]. - Major shareholders include Sinotruk (BVI) Limited and China National Heavy Duty Truck Group, each holding 54,873,500 shares, accounting for 8.59% of the company[184]. - The total number of issued shares as of June 30, 2025, is 638,645,000, with no treasury shares held by the company[185]. - The company has a substantial beneficial ownership concentration, with the top shareholders holding over 70% of the total shares[186]. Employee Engagement and Welfare - Employee welfare expenses for the first half of 2025 were approximately RMB 378.8 million, compared to RMB 351.5 million for the same period in 2024[134]. - The workforce as of June 30, 2025, consisted of 6,779 employees, a slight decrease from 6,818 employees as of December 31, 2024[134]. - The company established the "Pulin Academy" to promote corporate culture and develop employee skills, implementing various training activities during the reporting period[135]. - The company continues to strengthen cooperation with key universities for talent development and has established training bases[135]. Environmental and Social Responsibility - The company is enhancing its climate resilience strategy by upgrading its Shandong green smart factory and optimizing its supply chain to mitigate climate-related risks[126]. - The establishment of a rubber reserve center in Southeast Asia aims to buffer against supply fluctuations caused by geopolitical and climate factors[126]. - The company is collaborating with international carbon accounting organizations to ensure compliance with carbon footprint certification requirements in key markets like the EU[126]. - The company is facing dual compliance pressures from the EU's carbon border adjustment mechanism and new domestic tire energy consumption standards, which may increase production costs[124]. - The company actively participated in community engagement in Thailand, contributing to local education and promoting harmonious coexistence with the community[71]. Stock Options and Incentive Plans - The company has granted a total of 14,400,000 and 835,500 stock options under the 2019 Stock Option Plan, with conditional grants to eligible participants[137]. - The 2021 Stock Option Plan was adopted on May 17, 2021, replacing the 2019 plan, with a total of 35,050,000, 3,080,000, and 960,000 stock options granted on specified dates[138]. - The 2024 Stock Incentive Plan was adopted on May 31, 2024, with details to be provided in the report[139]. - The stock option plans aim to attract, retain, and motivate management and key employees by linking their interests with the company's performance[140]. - The company has designed specialized training programs tailored to different job roles and levels, enhancing employee capabilities and aligning with business needs[136].

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Total revenue increased by **2.5%** to **RMB 131,866.8 million**, and gross profit grew by **2.8%** to **RMB 21,509.6 million**, though net profit and profit attributable to owners decreased due to one-off impairment impacts Condensed Consolidated Statement of Profit or Loss | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 131,866,817 | 128,597,588 | +2.5% | | Cost of sales | (110,357,203) | (107,664,092) | +2.5% | | Gross profit | 21,509,614 | 20,933,496 | +2.8% | | Other income | 849,442 | 811,260 | +4.7% | | Other gains and losses | (1,086,255) | (656,769) | -65.4% | | Selling and distribution expenses | (10,010,130) | (9,378,405) | +6.7% | | Administrative expenses | (3,186,557) | (3,044,405) | +4.7% | | Other expenses, net | (1,038,382) | (1,012,033) | +2.6% | | Finance income | 271,275 | 372,154 | -27.1% | | Finance costs | (1,006,278) | (1,177,992) | -14.6% | | Finance costs, net | (735,003) | (805,838) | -8.8% | | Share of profits of associates and joint ventures | 113,236 | 198,770 | -43.0% | | Profit before tax | 6,415,965 | 7,046,076 | -8.9% | | Income tax expense | (1,362,328) | (1,505,520) | -9.5% | | Profit for the period | 5,053,637 | 5,540,556 | -8.8% | | Profit attributable to equity holders of the Company | 2,077,282 | 2,604,806 | -20.3% | | Non-controlling interests | 2,976,355 | 2,935,750 | +1.4% | | Basic and diluted earnings per share (RMB) | 0.33 | 0.41 | -19.5% | - Net profit and profit attributable to equity holders of the Company decreased, primarily due to one-off items such as impairment of associates; excluding this impact, net profit slightly decreased by **1.3%** year-on-year, and profit attributable to equity holders of the Company slightly decreased by **4.7%** year-on-year[54](index=54&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period was **RMB 5,038.5 million**, a **9.5%** decrease from **RMB 5,565.8 million** in the prior year, mainly due to lower profit and exchange differences Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Profit for the period | 5,053,637 | 5,540,556 | -8.8% | | Other comprehensive income (after tax) | (15,149) | 25,217 | -160.1% | | - Exchange differences on translation of operations outside Mainland China | (16,654) | 26,777 | -162.2% | | - Share of other comprehensive income of associates | 144 | (1,560) | -109.2% | | - Share of other comprehensive income of associates | 1,361 | – | N/A | | Total comprehensive income for the period | 5,038,488 | 5,565,773 | -9.5% | | Attributable to equity holders of the Company | 2,065,943 | 2,630,370 | -21.5% | | Non-controlling interests | 2,972,545 | 2,935,403 | +1.3% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total equity increased by **14.2%** to **RMB 112,034.8 million** as of June 30, 2025, driven by growth in assets, particularly trade and other receivables, alongside increased liabilities and borrowings Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Property, plant and equipment | 25,568,020 | 20,988,872 | +21.8% | | Right-of-use assets | 6,359,911 | 4,918,458 | +29.3% | | Investment properties | 1,716,507 | 1,673,690 | +2.6% | | Intangible assets | 11,015,822 | 8,507,954 | +29.5% | | Goodwill | 24,294,206 | 22,368,811 | +8.6% | | Interests in associates | 6,254,242 | 5,536,147 | +13.0% | | Interests in joint ventures | 267,253 | 22,924 | +1065.9% | | Other non-current financial assets | 765,876 | 584,325 | +31.1% | | Deferred tax assets | 2,188,426 | 1,968,756 | +11.2% | | Other non-current assets | 5,350,269 | 5,344,804 | +0.1% | | **Total non-current assets** | **83,780,532** | **71,914,741** | **+16.5%** | | **Current assets** | | | | | Inventories | 41,935,741 | 37,052,579 | +13.2% | | Trade and other receivables | 101,908,572 | 93,929,934 | +8.5% | | Other current financial assets | 29,641,070 | 28,211,657 | +5.1% | | Amounts due from related parties | 992,519 | 1,262,265 | -21.4% | | Tax recoverable | 241,292 | 222,147 | +8.6% | | Pledged and time deposits | 10,636,874 | 8,703,691 | +22.2% | | Cash and cash equivalents | 17,673,922 | 16,424,739 | +7.6% | | Assets classified as held for sale | 38,917 | 38,567 | +0.9% | | **Total current assets** | **203,068,907** | **185,845,579** | **+9.3%** | | **Current liabilities** | | | | | Trade and other payables | 82,784,395 | 80,742,110 | +2.5% | | Contract liabilities | 3,384,926 | 4,224,594 | -19.9% | | Lease liabilities | 533,032 | 520,268 | +2.5% | | Amounts due to related parties | 887,063 | 875,778 | +1.3% | | Borrowings | 53,831,777 | 42,702,306 | +26.1% | | Bonds payable | 2,040,117 | 2,150,582 | -5.1% | | Tax payable | 815,636 | 954,898 | -14.5% | | Defined benefit liabilities | 48,753 | 51,388 | -5.1% | | Liabilities held for sale | 243 | – | N/A | | **Total current liabilities** | **144,325,942** | **132,221,924** | **+9.2%** | | **Non-current liabilities** | | | | | Borrowings | 17,583,347 | 17,866,213 | -1.6% | | Bonds payable | 7,998,336 | 4,997,673 | +60.0% | | Lease liabilities | 764,333 | 768,138 | -0.5% | | Deferred tax liabilities | 2,244,857 | 1,915,360 | +17.2% | | Defined benefit liabilities | 762,130 | 773,542 | -1.5% | | Other non-current liabilities | 1,135,660 | 1,130,192 | +0.5% | | **Total non-current liabilities** | **30,488,663** | **27,451,118** | **+11.1%** | | **Total equity** | **112,034,834** | **98,087,278** | **+14.2%** | [Notes to the Unaudited Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Information) This section provides essential supplementary information on the basis of preparation, accounting policies, segment data, revenue, expenses, and key balance sheet items, clarifying the Group's financial performance and position [1. Company Information](index=6&type=section&id=1.%20Company%20Information) - China Resources Pharmaceutical Group Limited is incorporated in Hong Kong, listed on the HKEX, and primarily engaged in the manufacturing, distribution, and retail of pharmaceutical and healthcare products[12](index=12&type=chunk) [2. Basis of Preparation, Changes in Accounting Policies and Disclosures](index=6&type=section&id=2.%20Basis%20of%20Preparation%2C%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) - The interim financial information is prepared in accordance with the HKEX Listing Rules and HKAS 34, and has been reviewed by KPMG[13](index=13&type=chunk)[15](index=15&type=chunk) - HKAS 21 (Revised) 'The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability' was applied this period, with no material impact on the interim financial information[17](index=17&type=chunk) [3. Segment Information](index=8&type=section&id=3.%20Segment%20Information) - The Group has four reportable operating segments: pharmaceutical manufacturing, pharmaceutical distribution, pharmaceutical retail, and other business operations[21](index=21&type=chunk) Segment Information | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | Y-o-Y Change | H1 2025 Performance (RMB thousand) | H1 2024 Performance (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Manufacturing segment | 24,808,280 | 23,793,197 | +4.3% | 7,442,942 | 7,488,846 | -0.6% | | Distribution segment | 108,329,727 | 105,882,386 | +2.3% | 3,897,856 | 3,955,896 | -1.5% | | Retail segment | 5,514,645 | 4,949,379 | +11.4% | 79,316 | 49,635 | +59.8% | | Others | 70,276 | 58,097 | +21.0% | 46,766 | 29,069 | +61.0% | | **Total** | **138,722,928** | **134,683,059** | **+3.0%** | **11,466,880** | **11,523,446** | **-0.5%** | [4. Revenue](index=11&type=section&id=4.%20Revenue) Revenue by Source | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Sales of pharmaceutical products | 131,793,391 | 128,536,011 | +2.5% | | Rental income from operating leases of investment properties | 73,426 | 61,577 | +19.2% | | **Total Revenue** | **131,866,817** | **128,597,588** | **+2.5%** | Revenue by Geographical Market | Geographical Market | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Mainland China | 131,344,541 | 127,948,007 | +2.7% | | Hong Kong and others | 522,276 | 649,581 | -19.6% | [5. Other Income](index=11&type=section&id=5.%20Other%20Income) Other Income Sources | Other Income Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Service fee income | 305,333 | 375,948 | -18.8% | | Government grants | 324,586 | 227,577 | +42.6% | | Others | 219,523 | 207,735 | +5.7% | | **Total** | **849,442** | **811,260** | **+4.7%** | [6. Other Gains and Losses](index=12&type=section&id=6.%20Other%20Gains%20and%20Losses) Other Gains and Losses | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Impairment loss on property, plant and equipment | (206) | (16) | | Impairment loss on intangible assets | (32,803) | (815) | | Impairment loss on interests in associates | (392,463) | – | | Impairment loss on trade and other receivables, net | (608,800) | (590,198) | | Gain/(loss) on disposal of property, plant and equipment and right-of-use assets, net | 4,920 | (1,694) | | Loss on derecognition of trade and bills receivables measured at fair value through other comprehensive income | (88,870) | (113,471) | | Fair value changes of financial assets at fair value through profit or loss | 61,247 | 23,082 | | Others | (29,280) | 26,343 | | **Total** | **(1,086,255)** | **(656,769)** | - Impairment loss on interests in associates was the primary reason for the significant increase in other gains and losses in H1 2025, reaching **RMB 392,463 thousand**, compared to zero in the prior period[29](index=29&type=chunk) [7. Finance Costs, Net](index=12&type=section&id=7.%20Finance%20Costs%2C%20Net) Finance Costs, Net | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interest on borrowings | 886,787 | 1,021,326 | -13.1% | | Interest on bonds payable | 85,938 | 117,763 | -27.0% | | Interest on lease liabilities | 32,604 | 31,645 | +3.0% | | Interest on defined benefit liabilities | 2,161 | 2,825 | -23.5% | | Less: Interest capitalised on property, plant and equipment | (1,212) | (2,539) | -52.3% | | **Total finance costs** | **1,006,278** | **1,177,992** | **-14.6%** | | Finance income — interest | (271,275) | (372,154) | -27.1% | | **Net finance costs** | **735,003** | **805,838** | **-8.8%** | - The capitalisation rate for H1 2025 was **3.15% to 3.50%**, lower than **4.60%** in H1 2024[30](index=30&type=chunk) [8. Profit Before Tax](index=13&type=section&id=8.%20Profit%20Before%20Tax) Profit Before Tax Components | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Cost of inventories | 109,630,879 | 107,026,942 | +2.4% | | Research and development expenditure | 970,848 | 939,014 | +3.4% | | Depreciation of property, plant and equipment | 1,171,848 | 993,166 | +18.0% | | Depreciation of right-of-use assets | 396,758 | 338,835 | +17.1% | | Amortisation of intangible assets | 318,947 | 296,019 | +7.7% | | Provision for slow-moving and obsolete inventories | 15,736 | 30,575 | -48.5% | | Lease expenses not included in lease liabilities | 61,494 | 66,870 | -8.0% | | Exchange losses, net | 5,792 | 33,553 | -82.7% | [9. Income Tax](index=13&type=section&id=9.%20Income%20Tax) Income Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC corporate income tax | 1,611,015 | 1,616,963 | | Reversal of temporary differences and provisions | (254,635) | (105,495) | | **Total** | **1,362,328** | **1,505,520** | - The Group is assessing the impact of the global anti-dilution tax base model rules ('Pillar Two Model Rules'), concluding it is unlikely to have a material impact on the consolidated financial statements[34](index=34&type=chunk) [10. Earnings Per Share](index=14&type=section&id=10.%20Earnings%20Per%20Share) Profit Attributable to Ordinary Equity Holders | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company for basic EPS calculation | 2,073,328 | 2,604,806 | | Less: Dividends declared by subsidiaries to restricted share owners during the period | (3,954) | – | Weighted Average Number of Ordinary Shares | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Weighted average number of ordinary shares in issue for basic EPS calculation | 6,282,510,461 | 6,282,510,461 | - Basic and diluted earnings per share are consistent, as the restricted share incentive scheme is anti-dilutive[36](index=36&type=chunk) [11. Dividends](index=14&type=section&id=11.%20Dividends) - The Board resolved to declare an interim dividend of **RMB 0.072** per ordinary share for the six months ended June 30, 2025 (H1 2024: **RMB 0.083**), totaling **RMB 452 million**[37](index=37&type=chunk) Dividends Recognised as Distribution | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Dividends recognised as distribution to ordinary equity holders of the Company during the period: 2024 final (RMB 0.052 per share) | 326,691 | – | | 2023 final (RMB 0.154 per share) | – | 967,507 | [12. Property, Plant and Equipment](index=15&type=section&id=12.%20Property%2C%20Plant%20and%20Equipment) - In H1 2025, the Group purchased property, plant and equipment of approximately **RMB 1,225.1 million**, a **39.7%** increase from **RMB 877.2 million** in the prior period[41](index=41&type=chunk) - In H1 2025, the Group disposed of assets with a net book value of approximately **RMB 19.9 million**, generating a net gain on disposal of approximately **RMB 0.6 million**, compared to a net loss on disposal of approximately **RMB 1.7 million** in the prior period[41](index=41&type=chunk) [13. Other Non-current Financial Assets](index=15&type=section&id=13.%20Other%20Non-current%20Financial%20Assets) Other Non-current Financial Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Equity investments at fair value through other comprehensive income | 69,435 | 69,435 | | Equity investments at fair value through profit or loss | 696,441 | 514,890 | | **Total** | **765,876** | **584,325** | - Equity investments at fair value through profit or loss are primarily engaged in pharmaceutical R&D, distribution, and related operations, and do not meet the criteria of solely payments of principal and interest[42](index=42&type=chunk) [14. Trade and Other Receivables](index=16&type=section&id=14.%20Trade%20and%20Other%20Receivables) Trade and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bills receivable | 683,739 | 1,057,307 | | Contract assets | 54,297 | 64,596 | | Trade receivables | 92,376,246 | 83,694,249 | | Impairment allowance | (3,514,385) | (2,910,797) | | Prepayments | 3,737,744 | 4,069,522 | | Other receivables | 8,970,081 | 8,341,151 | | Impairment allowance | (399,150) | (386,094) | | **Total** | **101,908,572** | **93,929,934** | - Trade receivables typically have credit terms of **30 to 365 days**, while bills receivable generally mature within **30 to 180 days**[43](index=43&type=chunk) Aging of Trade Receivables (net of impairment allowance) | Aging of Trade Receivables (net of impairment allowance) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 19,001,914 | 19,403,995 | | 31 to 60 days | 11,186,870 | 11,950,773 | | 61 to 90 days | 10,079,834 | 7,656,996 | | 91 to 180 days | 19,401,912 | 17,219,042 | | 181 to 365 days | 20,728,425 | 18,158,794 | | Over 1 year | 8,462,906 | 6,393,852 | | **Total** | **88,861,861** | **80,783,452** | Aging of Bills Receivable (based on issue date) | Aging of Bills Receivable (based on issue date) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 279,599 | 615,874 | | 31 to 60 days | 90,780 | 173,400 | | 61 to 90 days | 85,601 | 66,667 | | 91 to 180 days | 227,759 | 201,366 | | **Total** | **683,739** | **1,057,307** | Other Current Financial Assets | Other Current Financial Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and bills receivables at fair value | 20,510,229 | 18,988,711 | | Financial products at fair value | 9,070,849 | 9,222,946 | | Equity investments at fair value through profit or loss | 59,992 | – | | **Total** | **29,641,070** | **28,211,657** | [15. Trade and Other Payables](index=18&type=section&id=15.%20Trade%20and%20Other%20Payables) Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 42,738,165 | 40,062,416 | | Bills payable | 17,109,593 | 18,535,915 | | Accrued salaries | 3,096,136 | 3,740,147 | | Other taxes payable | 960,258 | 942,129 | | Other payables | 16,937,457 | 15,703,647 | | Refund liabilities | 1,163,958 | 1,224,330 | | Amounts payable for acquisition of subsidiaries | 778,828 | 533,526 | | **Total** | **82,784,395** | **80,742,110** | - Credit terms for goods purchased range from **30 to 90 days**, and bills payable mature within **30 to 180 days**[45](index=45&type=chunk) Aging of Trade Payables (based on invoice date) | Aging of Trade Payables (based on invoice date) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 21,056,480 | 19,815,023 | | 31 to 60 days | 7,699,286 | 7,415,293 | | 61 to 90 days | 3,752,799 | 3,380,817 | | Over 90 days | 10,229,600 | 9,451,283 | | **Total** | **42,738,165** | **40,062,416** | Aging of Bills Payable (based on issue date) | Aging of Bills Payable (based on issue date) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 4,257,304 | 5,652,836 | | 31 to 60 days | 2,794,727 | 3,473,684 | | 61 to 90 days | 2,835,625 | 2,918,458 | | Over 90 days | 7,221,937 | 6,490,937 | | **Total** | **17,109,593** | **18,535,915** | [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes China's pharmaceutical industry trends, reviews the Group's overall performance and strategic initiatives across manufacturing, distribution, and retail segments, and highlights progress in digital transformation and social responsibility [Industry Overview](index=19&type=section&id=Industry%20Overview) - China's GDP grew by **5.3%** year-on-year in H1 2025, with overall stable economic operations[47](index=47&type=chunk) - China's pharmaceutical industry is undergoing structural adjustments, with short-term overall growth pressure; in H1 2025, revenue for large-scale pharmaceutical manufacturing decreased by **1.2%** year-on-year, and total profit decreased by **2.8%**[48](index=48&type=chunk) - Long-term drivers for the pharmaceutical industry include an aging population, 'Healthy China' initiatives, and enhanced innovation capabilities[48](index=48&type=chunk) - Traditional Chinese Medicine policies are strengthening, innovative drug development receives full-chain support, and AI technology will empower all aspects of the pharmaceutical industry[49](index=49&type=chunk) - Coordinated development and governance of healthcare, medical services, and pharmaceuticals are deepening, with expanded centralized procurement, full implementation of DRG/DIP payment reforms, and ongoing anti-corruption efforts benefiting leading and well-regulated enterprises[50](index=50&type=chunk) [Group Performance and Highlights](index=20&type=section&id=Group%20Performance%20and%20Highlights) - The Group actively implements national strategies, fosters new quality productive forces, strengthens strategic emerging industry layouts, promotes R&D innovation, achieves steady revenue growth, and enhances operational resilience[51](index=51&type=chunk) - The Group is a leading integrated pharmaceutical company in China, ranking **third** overall in the industry, with its pharmaceutical manufacturing business ranking **second** among the top 100 pharmaceutical industrial enterprises, and its pharmaceutical distribution business ranking **third** in scale[51](index=51&type=chunk) - CR Sanjiu rose to **29th** in Ipsos' '2025 China Brand Influence Index (BII)', while 'Jianzhong', 'Dong-E-E-Jiao', and 'Yuting' were listed among 'China's 500 Most Valuable Brands'[52](index=52&type=chunk) Group Performance and Highlights | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | 131,866.8 | 128,597.6 | +2.5% | | Gross Profit | 21,509.6 | 20,933.5 | +2.8% | | Overall Gross Margin | 16.3% | 16.3% | Flat | | Net Profit | 5,053.6 | 5,540.6 | -8.8% | | Profit Attributable to Owners of the Company | 2,077.3 | 2,604.8 | -20.3% | | Basic Earnings Per Share (RMB) | 0.33 | 0.41 | -19.5% | | Interim Dividend (RMB per share) | 0.072 | 0.083 | -13.2% | - Excluding the impact of one-off items such as impairment of associates, the Group's net profit slightly decreased by **1.3%** year-on-year, and profit attributable to owners of the Company slightly decreased by **4.7%** year-on-year[54](index=54&type=chunk) [Pharmaceutical Business](index=22&type=section&id=Pharmaceutical%20Business) The pharmaceutical business saw **4.3%** segment revenue growth, with increases across all sub-segments, driven by strategic initiatives including industrial integration, R&D investment, full-chain development, and international expansion to enhance competitiveness [(1) Financial Performance](index=22&type=section&id=(1)%20Financial%20Performance) Pharmaceutical Business Segment Revenue | Pharmaceutical Business Segment Revenue | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Traditional Chinese Medicine (TCM) | 13,062.0 | 11,968.7 | +9.1% | | - OTC drugs | 8,656.4 | 9,472.0 | -8.6% | | - Prescription drugs | 4,405.6 | 2,496.7 | +76.5% | | Chemical Drugs | 8,928.3 | 9,497.4 | -6.0% | | - OTC drugs | 2,490.4 | 2,620.7 | -5.0% | | - Prescription drugs | 5,775.6 | 6,192.3 | -6.7% | | - APIs | 662.3 | 684.4 | -3.2% | | Biologics | 1,269.6 | 1,134.9 | +11.9% | | Nutritional Health Products and Others | 1,548.4 | 1,192.2 | +29.9% | | **Total** | **24,808.3** | **23,793.2** | **+4.3%** | - The gross margin for the pharmaceutical business was **59.3%**, a slight decrease of **0.8 percentage points** from the prior year[55](index=55&type=chunk) - Revenue from TCM prescription drugs increased by **76.5%** year-on-year, mainly due to the acquisition of Tasly Pharmaceutical; nutritional health products and other businesses saw significant revenue growth of **29.9%**, primarily due to the acquisition of Sichuan Nangere Biotechnology Co., Ltd[57](index=57&type=chunk) - As of the reporting period, the Group operated **83** production bases and **561** production lines, manufacturing **944** products, with **555** included in the National Medical Insurance Catalog and **235** in the Essential Drug List[56](index=56&type=chunk) [(2) Key Initiatives](index=24&type=section&id=(2)%20Key%20Initiatives) [a. Promoting Industrial Integration and Strengthening External Development](index=24&type=section&id=a.%20Promoting%20Industrial%20Integration%20and%20Strengthening%20External%20Development) - Completed acquisitions of Nangere and Tasly Pharmaceutical, accelerating business integration, consolidating a leading position in the TCM industry, and enhancing TCM innovation capabilities[58](index=58&type=chunk) - Following the consolidation of Green Cross Hong Kong, implemented a business center penetration management model to enhance the competitiveness of the blood products segment[58](index=58&type=chunk) - Established China Resources Pharmaceutical (Chengdu) Innovation Investment Fund Partnership (Limited Partnership) with a fund size of **RMB 1 billion**, focusing on investments in innovative chemical drugs, biologics, and high-end medical devices[59](index=59&type=chunk) - CR Double-Crane reached an exclusive cooperation agreement with Henan Zhongshuai Pharmaceutical for Dextromethylphenidate Hydrochloride Extended-Release Capsules (Guanzhu) in Mainland China[60](index=60&type=chunk) - CR Sanjiu and Nanjing Aierpu Regenerative Medical Technology reached a joint development cooperation for the HiCM–188 (iPSC cardiomyocyte) project, expanding into the cell therapy sector[60](index=60&type=chunk) [b. Fostering New Quality Productive Forces and Enhancing Innovation Momentum](index=26&type=section&id=b.%20Fostering%20New%20Quality%20Productive%20Forces%20and%20Enhancing%20Innovation%20Momentum) - Continued to increase R&D investment, with total R&D expenditure of **RMB 1.25 billion** during the reporting period; as of the end of the period, there were **476** R&D projects, including **178** new drug projects[61](index=61&type=chunk) - Operates **2** national key laboratories, **4** national engineering technology research centers, and other R&D platforms, with a team of **3,868** R&D professionals, of whom **42.0%** hold master's or doctoral degrees[61](index=61&type=chunk) - In TCM, **1** classic formula (Yiqi Qingfei Granules) was successfully approved; in biologics, 10% Human Immunoglobulin for Intravenous Injection was successfully approved for production[62](index=62&type=chunk) - In chemical drugs, obtained **19** chemical drug registration approvals, including Levetiracetam Oral Solution, and **4** products passed generic drug consistency evaluations[62](index=62&type=chunk) - Received **1** national/provincial-level award and **7** national/provincial-level project approvals[63](index=63&type=chunk) - Actively expanded external innovation and cooperation, establishing strategic partnerships with Hong Kong Nano and Advanced Materials Institute, Hong Kong University of Science and Technology, Sichuan University, and others to build an innovation ecosystem[64](index=64&type=chunk) [c. Strengthening Full Industrial Chain Construction and Enhancing Industrial Competitiveness](index=28&type=section&id=c.%20Strengthening%20Full%20Industrial%20Chain%20Construction%20and%20Enhancing%20Industrial%20Competitiveness) - Upstream, promoted self-sufficiency of key raw materials, adding over **1,500 mu** of medicinal herb cultivation bases for Lysimachia, Wild Chrysanthemum, Plantago, etc[65](index=65&type=chunk) - In the blood products sector, cumulative plasma collection reached **320 tons** in H1, a **7.2%** year-on-year increase, exceeding the industry average growth rate[65](index=65&type=chunk) - Midstream, continuously promoted cost reduction, efficiency improvement, and quality enhancement; CR Jiangzhong fully implemented **22** lean projects, ensuring product supply through production process innovation and organizational optimization[66](index=66&type=chunk) - Downstream, vigorously promoted marketing model transformation and actively participated in centralized procurement, with **141** products selected in national centralized drug procurement[67](index=67&type=chunk) - Strengthened online drug channel expansion, establishing strategic partnerships with JD Pharmacy, Ali Health Pharmacy, Ping An Good Doctor, and others[67](index=67&type=chunk) [d. Promoting International Development and Expanding New Growth Areas](index=30&type=section&id=d.%20Promoting%20International%20Development%20and%20Expanding%20New%20Growth%20Areas) - Its Xuesaitong preparations have gained market access in **15** countries globally, and Dihydroartemisinin-Piperaquine tablets received their first Global Fund procurement order[68](index=68&type=chunk) - Established Dong-E-E-Jiao International Co., Ltd. in Hong Kong to build an overseas business hub, and signed a strategic cooperation agreement with Korea Cheong Kwan Jang[68](index=68&type=chunk) - Medical devices have advanced registration applications in over **50** countries, and plasma collection products hold over **20%** market share in Europe[69](index=69&type=chunk) [Pharmaceutical Distribution and Retail Business](index=31&type=section&id=Pharmaceutical%20Distribution%20and%20Retail%20Business) Pharmaceutical distribution revenue grew by **2.3%** and retail by **11.4%**, largely due to high-value DTP business, with the Group enhancing market coverage and services through integrated coordination, deep marketing, and business model innovation [(1) Financial Performance](index=31&type=section&id=(1)%20Financial%20Performance) Pharmaceutical Distribution and Retail Business Performance | Business Segment | H1 2025 Revenue (RMB million) | H1 2024 Revenue (RMB million) | Y-o-Y Growth | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Pharmaceutical Distribution | 108,329.7 | 105,882.4 | +2.3% | 5.9% | | Pharmaceutical Retail | 5,514.6 | 4,949.4 | +11.4% | 6.1% | - Pharmaceutical retail business growth was primarily driven by rapid revenue growth in high-value direct-to-patient (DTP) business, with DTP revenue approximately **RMB 3.76 billion**, a year-on-year increase of approximately **14.1%**[70](index=70&type=chunk) - Retail business gross margin decreased by **0.4 percentage points** to **6.1%**, mainly due to the increased proportion of lower-margin DTP business revenue[70](index=70&type=chunk) [(2) Key Initiatives](index=32&type=section&id=(2)%20Key%20Initiatives) - As of the reporting period, the pharmaceutical distribution network covered **28** provinces nationwide with approximately **220,000** customers; there were **704** self-operated retail pharmacies, including **279** DTP pharmacies (**187** 'dual-channel' pharmacies)[71](index=71&type=chunk) - Promoted integrated business coordination, deepened strategic key account management system construction, strengthened value chain synergy, and optimized product resource acquisition mechanisms[72](index=72&type=chunk) - Accelerated the shift from traditional commercial distribution to a dual-driven model of distribution plus deep marketing, strategically focusing on specialty drugs, chronic diseases, and retail[73](index=73&type=chunk) - Deep marketing business covers **31** provinces, **18,000** medical terminals, and **68,000** retail stores[73](index=73&type=chunk) - Medical device distribution revenue increased by **8%** year-on-year, strengthening product introduction with **7** products introduced through centralized negotiation and **11** new terminal innovation service projects in H1[73](index=73&type=chunk) - CR Regional Testing Center officially commenced operations, building a comprehensive testing service system covering 'in-hospital—out-of-hospital—home' scenarios[73](index=73&type=chunk) - Promoted business model innovation, collaborating with over **10** key hospitals on COE (Center of Excellence) projects, assisting commercial insurance in building digital platforms, and launching a new 'medical + pharmaceutical + insurance' three-dimensional linkage paradigm[74](index=74&type=chunk) - Continuously strengthened professional pharmacy construction, optimized operating categories, improved operational quality, fully launched the 'Run Care' doctor-patient management platform, managing **820,000** patients[74](index=74&type=chunk) [Accelerating Digital and Intelligent Transformation to Empower Business Quality and Efficiency](index=35&type=section&id=Accelerating%20Digital%20and%20Intelligent%20Transformation%20to%20Empower%20Business%20Quality%20and%20Efficiency) - Deepened intelligent manufacturing, completing the development and implementation of smart breeding platforms for the donkey industry, TCM material planting and traceability management, and plasma station SCRM systems[75](index=75&type=chunk) - **4** production bases received the '2025 Provincial/Municipal Advanced Smart Factory' honor[75](index=75&type=chunk) - Empowered pharmaceutical distribution by fully promoting deep integration of digitalization with business, centered around platforms such as 'Runyao Mall', 'Runyaotong', 'Run Care', and 'Runyao Premium'[76](index=76&type=chunk) - Implemented 'Runyaotong' digital field promotion assistant in Hubei, Henan, Hunan, and other regions, and launched drug traceability code platforms in Shanghai, Beijing, Inner Mongolia, and other regions[76](index=76&type=chunk) [Adhering to Green Development and Practicing Social Responsibility](index=36&type=section&id=Adhering%20to%20Green%20Development%20and%20Practicing%20Social%20Responsibility) - Participated in drafting the 'Construction Standards for Low-Carbon Logistics Parks in the Pharmaceutical Industry' and led the drafting of three group standards, including the 'Guidelines for Building Waste-Free Factories in Pharmaceutical Enterprises'[77](index=77&type=chunk) - Actively deployed distributed photovoltaic power generation projects, with **2** production bases completing grid connection for **4.1 MW** rooftop distributed photovoltaic power generation projects, providing over **4.34 million kWh** of clean electricity and reducing carbon emissions by approximately **2,500 tons** annually[77](index=77&type=chunk) - MSCI-ESG rating maintained 'A' for **three** consecutive years, with CR Sanjiu upgraded from BB to A, and Dong-E-E-Jiao from B to BB[77](index=77&type=chunk) - Upgraded transportation vehicles in pharmaceutical distribution, gradually phasing out traditional fuel vehicles and introducing new energy vehicles[77](index=77&type=chunk) [Outlook and Future Strategies](index=37&type=section&id=Outlook%20and%20Future%20Strategies) The Group aims to be a trusted, innovation-driven leader, focusing on five strategic directions: innovation, optimized layout, external expansion, operational excellence, and digital/AI empowerment, to enhance competitiveness and consolidate its industry-leading position - Adhere to innovation-driven development, focusing on major disease areas such as oncology, autoimmune diseases, and cardiovascular/cerebrovascular diseases, strengthening the construction of differentiated innovative R&D platforms[79](index=79&type=chunk) - Adhere to optimized layout, consolidating and enhancing business advantages in TCM and chemical drugs, vigorously developing biologics, specialty drugs, high-end medical devices, synthetic biology, and other fields[79](index=79&type=chunk) - Adhere to external expansion, continuing to increase investment and M&A efforts, leveraging the pioneering role of industrial funds[79](index=79&type=chunk) - Adhere to operational excellence, deeply implementing differentiated classified management and improving management quality[79](index=79&type=chunk) - Adhere to digital and AI empowerment, exploring the application of new technologies like artificial intelligence in R&D, production, and sales to help improve enterprise operational efficiency and quality[80](index=80&type=chunk) [Other Information](index=38&type=section&id=Other%20Information) This section covers the Group's liquidity, financial resources, asset pledges, contingent liabilities, human resources, post-reporting events, and interim dividend declaration, alongside corporate governance, securities trading compliance, and audit committee review of interim results [Liquidity and Financial Resources](index=38&type=section&id=Liquidity%20and%20Financial%20Resources) - As of June 30, 2025, cash and cash equivalents amounted to **RMB 17,673.9 million**, primarily denominated in RMB and HKD[81](index=81&type=chunk) - Approximately **75.4%** of total bank borrowings are due within one year (December 31, 2024: **70.5%**)[82](index=82&type=chunk) Liquidity and Financial Resources | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.4：1 | 1.4：1 | | Net Debt-to-Equity Ratio | 57.2% | 52.3% | Cash Flow | Cash Flow | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Net cash from operating activities | 1,531.0 | (1,019.9) | | Net cash used in investing activities | (5,017.3) | (3,460.5) | | Net cash from financing activities | 4,731.2 | 2,115.9 | [Pledge of Assets](index=39&type=section&id=Pledge%20of%20Assets) - As of June 30, 2025, the Group's total borrowings were **RMB 71,415.1 million**, of which **RMB 2,987.6 million** were pledged, representing **4.2%** of total bank borrowings[85](index=85&type=chunk) - Certain trade and bills receivables with a total net book value of **RMB 1,553.1 million** were pledged as security[85](index=85&type=chunk) [Contingent Liabilities](index=39&type=section&id=Contingent%20Liabilities) - As of June 30, 2025, the Group had no significant contingent liabilities[86](index=86&type=chunk) [Human Resources](index=39&type=section&id=Human%20Resources) - As of June 30, 2025, the Group employed approximately **86,000** staff in Mainland China and Hong Kong[87](index=87&type=chunk) - Remuneration is determined based on performance, experience, and market rates, with performance-based incentives granted on a discretionary basis, and other benefits including medical insurance and training[87](index=87&type=chunk) [Events After the Reporting Period](index=39&type=section&id=Events%20After%20the%20Reporting%20Period) - The Group had no significant events after the reporting period and up to the date of this announcement[88](index=88&type=chunk) [Declaration of Dividends](index=40&type=section&id=Declaration%20of%20Dividends) - The Board resolved to declare an interim dividend of **RMB 0.072** per share for the six months ended June 30, 2025 (H1 2024: **RMB 0.083**)[89](index=89&type=chunk) - The interim dividend will be paid on October 31, 2025, by default in HKD cash at an exchange rate of **RMB 1.0 to HKD 1.0957**, amounting to **HKD 0.0789** per share[89](index=89&type=chunk) - Shareholders may elect to receive dividends in RMB by submitting the dividend currency election form by **4:30 p.m. on October 13, 2025**[89](index=89&type=chunk)[90](index=90&type=chunk) - To determine shareholders entitled to the interim dividend, the Company will suspend share transfer registration from **September 15 to September 16, 2025**[91](index=91&type=chunk) [Corporate Governance](index=41&type=section&id=Corporate%20Governance) - The Company has adopted the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules[92](index=92&type=chunk) - During the reporting period, the Company complied with the Corporate Governance Code, except for the temporary dual role of Chairman and CEO, which has been rectified with Mr. Cheng Jie's appointment as President[92](index=92&type=chunk) - The Chairman of the Board was unable to attend the Annual General Meeting held on May 23, 2025, due to other work commitments, which does not comply with Code Provision F.2.2[94](index=94&type=chunk) [Standard Code for Securities Transactions](index=42&type=section&id=Standard%20Code%20for%20Securities%20Transactions) - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules, and Directors have confirmed compliance throughout the reporting period[96](index=96&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=42&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period or up to the date of this announcement, nor did they hold any treasury shares[97](index=97&type=chunk) [Review of Interim Results by KPMG](index=42&type=section&id=Review%20of%20Interim%20Results%20by%20KPMG) - The interim financial information is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, resulting in an unmodified review report[98](index=98&type=chunk) [Audit Committee](index=43&type=section&id=Audit%20Committee) - The Company's Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025[99](index=99&type=chunk) [Publication of Interim Results and 2025 Interim Report on HKEX and Company Website](index=43&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) - The interim results announcement has been published on the HKEX website and the Company's website, and the 2025 interim report will also be published and sent to shareholders who wish to receive a printed copy[100](index=100&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Yadea Group Holdings Ltd. 雅迪集團控股有限公司 （股份代號：1585） （於開曼群島註冊成立的有限公司） 截至2025年6月30日止六個月 中期業績公告 雅迪集團控股有限公司（「本公司」或「雅迪」）董事（「董事」）會（「董事會」）謹此提呈本公司 及其附屬公司（統稱「本集團」）截至2025年6月30日止六個月（「報告期間」）的未經審核綜 合中期業績，連同2024年同期的比較數字如下： 財務摘要 於報告期間： – 1 – • 與2024年同期相比，收入增加約33.1%至人民幣19,185.9百萬元。 • 與2024年同期相比，毛利增加約45.1%至人民幣3,763.2百萬元。 • 與2024年同期相比，本公司股東應佔利潤增加約59.5%至人民幣1,649.0百萬元。 • 與2024年同期相比，每股基本盈利增加約57.4%至每股人民幣54.3分。 簡明綜合損益表 截至2025年6月3 ...