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。 VCREDIT Holdings Limited 維信金科控股有限公司 （以存續方式於開曼群島註冊成立的有限公司） （股份代號：2003） 截 至2025年6月30日止六個月的 中期業績公告 維 信 金 科 控 股 有 限 公 司（「本公司」或「我 們」）董 事（「董 事」）會（「董事會」）宣 佈 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（「期 內」）的 未 經 審 核綜合中期業績。 財務摘要 | | 截 至6月30日止六個月 | | | | --- | --- | --- | --- | | | 2025年 | 2024年 | 變 動 | | | 人民幣百萬元 | 人民幣百萬元 | | | 總收入 | 2,499.9 | 1,738.4 | 43.8% | | 利息及類似收入 | 1,089.5 | 1,068.3 | 2.0% | | 減：利息支 ...

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company reported a 7.1% decrease in revenue and a 19.7% decrease in gross profit for H1 2025, while net profit increased by 27.7% Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 933.5 | 1,005.0 | -7.1% | | Gross Profit | 116.8 | 145.4 | -19.7% | | Net Profit | 30.0 | 23.5 | +27.7% | | Basic and Diluted Earnings Per Share | 0.01 | 0.02 | -50.0% | - The Board resolved to declare an interim dividend of **RMB0.015** per ordinary share (H1 2024: interim dividend of RMB0.005 and special dividend of RMB0.025 per ordinary share)[2](index=2&type=chunk) [Unaudited Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the unaudited interim condensed consolidated financial statements, including statements of profit or loss, financial position, and cash flows [Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Revenue decreased by 7.1% and gross profit by 19.7%, but profit for the period increased by 27.7% due to significantly reduced income tax expense, despite a 40.4% drop in profit attributable to owners of the parent Overview of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 933,518 | 1,005,013 | -7.1% | | Cost of Sales | (816,678) | (859,592) | -5.0% | | Gross Profit | 116,840 | 145,421 | -19.7% | | Profit Before Tax | 32,857 | 30,521 | +7.6% | | Income Tax Expense | (2,832) | (7,023) | -59.7% | | Profit for the Period | 30,025 | 23,498 | +27.8% | | Profit Attributable to Owners of the Parent | 9,315 | 15,634 | -40.4% | | Profit Attributable to Non-controlling Interests | 20,710 | 7,864 | +163.4% | | Basic and Diluted Earnings Per Share (RMB) | 0.01 | 0.02 | -50.0% | [Unaudited Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets and liabilities decreased, but net current assets increased, indicating improved liquidity primarily driven by a significant reduction in current liabilities Overview of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 1,912,241 | 1,945,108 | -32,867 | | Total Current Assets | 1,325,169 | 1,562,341 | -237,172 | | Total Current Liabilities | 907,805 | 1,200,012 | -292,207 | | Net Current Assets | 417,364 | 362,329 | +55,035 | | Total Equity | 1,962,227 | 1,953,055 | +9,172 | [Unaudited Interim Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash flow from operating activities significantly increased due to higher cash payments from sales, while net cash outflow from investing activities rose and net cash outflow from financing activities substantially decreased, reflecting reduced loan repayments and dividend payments Overview of Cash Flows | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 69,862 | 35,167 | +34,695 | | Net Cash Flow Used in Investing Activities | (18,818) | (10,758) | -8,060 | | Net Cash Flow Used in Financing Activities | (18,007) | (134,311) | +116,304 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 33,037 | (109,902) | +142,939 | | Cash and Cash Equivalents at End of Period | 300,418 | 177,439 | +122,979 | [Notes to the Unaudited Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes explaining the basis of preparation, significant accounting policies, and specific financial statement line items [1. Company Information](index=6&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) The company is an investment holding company incorporated in the Cayman Islands, primarily engaged in the production and sale of battery materials, dye and agrochemical intermediates, pigment intermediates, and new materials, with Mr. Ge Yi identified as the controlling party - The company is an investment holding company incorporated in the Cayman Islands, primarily engaged in the production and sale of battery materials, dye and agrochemical intermediates, pigment intermediates, and new materials[9](index=9&type=chunk)[14](index=14&type=chunk) - Mr. Ge Yi has been identified by the Board as the company's controlling party[9](index=9&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E7%9A%84%E8%AE%8A%E6%9B%B4) The interim financial information is prepared in accordance with HKAS 34 and should be read with the annual financial statements; newly adopted HKFRS amendments, including HKAS 21 on lack of exchangeability, have no material impact on the Group's financial position or performance - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting”[10](index=10&type=chunk) - Newly adopted amendments to Hong Kong Financial Reporting Standards, including HKAS 21 “Lack of Exchangeability”, have no impact on the Group's financial position or performance[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [3. Operating Segment Information](index=7&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates in three reportable segments: battery materials, dye and agrochemical intermediates, and pigment intermediates and new materials; the latter showed significant revenue and profit growth, while the other two segments experienced declines - The Group has three reportable operating segments: battery materials, dye and agrochemical intermediates, and pigment intermediates and new materials[15](index=15&type=chunk)[16](index=16&type=chunk) Operating Segment Revenue and Profit | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | Year-on-year Change (%) | H1 2025 Profit (RMB thousand) | H1 2024 Profit (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Battery Materials | 234,277 | 281,949 | -16.9% | (99,684) | (101,222) | +1.5% | | Dye and Agrochemical Intermediates | 416,520 | 502,506 | -17.1% | 44,493 | 98,928 | -55.0% | | Pigment Intermediates and New Materials | 282,721 | 220,558 | +28.2% | 95,400 | 63,331 | +50.6% | | **Total Segment Revenue** | **933,518** | **1,005,013** | **-7.1%** | **40,209** | **61,037** | **-34.1%** | - As of June 30, 2025, assets for the battery materials segment were **RMB1,433,414 thousand**, for dye and agrochemical intermediates **RMB1,607,367 thousand**, and for pigment intermediates and new materials **RMB634,498 thousand**[18](index=18&type=chunk) [4. Revenue](index=10&type=section&id=4.%20%E6%94%B6%E7%9B%8A) Total revenue for the period was RMB933.5 million, entirely from goods sales, with mainland China remaining the primary market, though export sales to India and Indonesia increased - Total revenue was **RMB933,518 thousand**, entirely derived from the sale of goods[21](index=21&type=chunk) Revenue by Geographical Market | Geographical Market | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 725,829 | 833,207 | | India | 103,157 | 80,139 | | Indonesia | 22,342 | 12,053 | | Japan | 16,849 | 13,598 | | Germany | 12,789 | 14,793 | | Brazil | 9,896 | 7,507 | | Taiwan, China | 9,010 | 7,599 | | Spain | 8,942 | 5,100 | | United States | 5,488 | 13,412 | | Other Countries/Regions | 9,288 | 5,978 | | **Total** | **933,518** | **1,005,013** | [5. Finance Costs](index=12&type=section&id=5.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs decreased year-on-year to RMB17.7 million, primarily due to lower interest on bank and other borrowings Composition of Finance Costs | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings and other non-current liabilities | 16,993 | 19,651 | -2,658 | | Interest on lease liabilities | 278 | 13 | +265 | | Other finance costs | 438 | 2,483 | -2,045 | | **Total** | **17,709** | **22,147** | **-4,438** | - There were no capitalized interest expenses for the six months ended June 30, 2025 and 2024[23](index=23&type=chunk) [6. Profit Before Tax](index=12&type=section&id=6.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax was RMB32.9 million, primarily influenced by cost of inventories sold, depreciation, research and development costs, staff salaries and benefits, and inventory write-downs Key Deductions/Additions to Profit Before Tax | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 816,678 | 859,592 | | Depreciation of property, plant and equipment | 79,865 | 81,460 | | Research and development costs | 7,955 | 9,630 | | Wages, salaries and benefits | 104,808 | 89,896 | | Write-down of inventories to net realizable value | 18,314 | 8,596 | [7. Income Tax Expense](index=13&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense significantly decreased by 59.7% year-on-year to RMB2.8 million, mainly due to a reduction in current taxable income; the company applies varying tax rates across regions, with Tsaker Chemical enjoying preferential high-tech enterprise rates Composition of Income Tax Expense | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Current income tax expense | 22,068 | 38,823 | -43.2% | | Deferred income tax credit | (19,236) | (31,800) | -39.5% | | **Total Income Tax Expense for the Period** | **2,832** | **7,023** | **-59.7%** | [8. Earnings Per Share Attributable to Owners of the Parent](index=13&type=section&id=8.%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%AC%8A%E7%9B%8A%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share attributable to owners of the parent was RMB0.01, representing a 50% decrease compared to the same period last year Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the parent (RMB thousand) | 9,315 | 15,634 | -40.4% | | Weighted average number of ordinary shares for basic EPS (thousand shares) | 970,865 | 993,392 | -2.3% | | **Basic and Diluted Earnings Per Share (RMB)** | **0.01** | **0.02** | **-50.0%** | - The Group had no dilutive potential ordinary shares during the reporting period[27](index=27&type=chunk) [9. Property, Plant and Equipment](index=14&type=section&id=9.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) During the period, the company incurred a total cost of RMB27.0 million for property, plant, and equipment purchases, and disposed of assets with a net book value of approximately RMB3.8 million, resulting in a net loss of approximately RMB3.3 million - Total cost of purchases of property, plant and equipment: approximately **RMB27,002 thousand** for H1 2025 (H1 2024: approximately RMB43,687 thousand)[28](index=28&type=chunk) - Net book value of assets disposed: approximately **RMB3,806 thousand** for H1 2025 (H1 2024: approximately RMB2,178 thousand), resulting in a net loss of approximately **RMB3,312 thousand** (H1 2024: approximately RMB1,484 thousand)[28](index=28&type=chunk) [10. Inventories](index=14&type=section&id=10.%20%E5%AD%98%E8%B2%A8) During the period, the company's inventories were written down to net realizable value by approximately RMB18.3 million, a significant increase compared to the same period last year - Inventories written down to net realizable value: approximately **RMB18,314 thousand** for H1 2025 (H1 2024: approximately RMB8,596 thousand)[29](index=29&type=chunk) [11. Trade Receivables](index=14&type=section&id=11.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables were RMB243.9 million, a decrease from December 31, 2024; the company maintains strict control over overdue balances and uses a simplified approach for expected credit loss provisions Trade Receivables and Impairment Provisions | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Trade receivables | 251,359 | 293,699 | -42,340 | | Impairment provisions | (7,474) | (9,835) | +2,361 | | **Total** | **243,885** | **283,864** | **-39,979** | - Credit terms generally range from one to three months, with regular review of overdue balances and no significant concentration of credit risk[30](index=30&type=chunk) - Changes in impairment provisions: a reversal of **RMB2,361 thousand** for H1 2025 (December 31, 2024: provision of RMB1,395 thousand)[31](index=31&type=chunk) [12. Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=12.%20%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E4%B9%8B%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, total financial assets at fair value were RMB33.1 million, a significant increase from December 31, 2024, primarily driven by growth in listed equity investments and short-term debt investments Financial Assets at Fair Value Through Profit or Loss | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Listed equity investments (current) | 14,003 | 906 | +13,097 | | Short-term debt investments (current) | 2,421 | – | +2,421 | | Unlisted investments (non-current) | 16,687 | 14,960 | +1,727 | | **Total** | **33,111** | **15,866** | **+17,245** | - Listed equity investments and short-term debt investments are classified as held for trading purposes[33](index=33&type=chunk) - Unlisted investments represent an investment in the income rights of a private equity fund[33](index=33&type=chunk) [13. Interest-bearing Bank and Other Borrowings](index=17&type=section&id=13.%20%E8%A8%88%E6%81%AF%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2025, total interest-bearing bank and other borrowings increased to RMB251.8 million from December 31, 2024, all repayable within one year, with certain property, plant, and equipment pledged as collateral Interest-bearing Bank and Other Borrowings | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Short-term bank loans (secured) | 211,719 | 165,172 | +46,547 | | Short-term bank loans (unsecured) | 30,029 | 25,249 | +4,780 | | Long-term other borrowings (secured) | 10,080 | 17,990 | -7,910 | | **Total Bank and Other Borrowings** | **251,828** | **208,411** | **+43,417** | - All borrowings are denominated in RMB and bear fixed interest rates[34](index=34&type=chunk) - Property, plant and equipment and right-of-use assets of approximately **RMB182.3 million** have been pledged to secure bank borrowings and credit facilities[34](index=34&type=chunk) [14. Cash and Cash Equivalents](index=18&type=section&id=14.%20%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) As of June 30, 2025, cash and cash equivalents totaled RMB300.4 million, predominantly denominated in RMB, with restricted cash primarily comprising margin deposits for bills payable Composition of Cash and Cash Equivalents | Indicator | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 303,593 | 210,832 | +92,761 | | Less: Restricted cash | (3,175) | (33,393) | +30,218 | | **Cash and Cash Equivalents** | **300,418** | **177,439** | **+122,979** | - Restricted cash primarily consists of margin deposits held for bills payable[35](index=35&type=chunk) [15. Fair Value and Fair Value Hierarchy of Financial Instruments](index=18&type=section&id=15.%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E4%B9%8B%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E5%8F%8A%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E7%AD%89%E7%B4%9A) The Group's financial instruments are measured at fair value across three levels, including bills receivable, financial assets at fair value, and equity investments designated at fair value, with Level 3 valuation methods primarily used for non-current financial assets at fair value and unquoted equity investments - Fair value measurements are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (significant unobservable inputs)[37](index=37&type=chunk) - As of June 30, 2025, the total fair value of financial assets was **RMB116,487 thousand**, comprising **RMB16,424 thousand** in Level 1, **RMB54,156 thousand** in Level 2, and **RMB45,907 thousand** in Level 3[41](index=41&type=chunk) - Non-current financial assets at fair value are valued using valuation multiples and a discount for lack of marketability[43](index=43&type=chunk)[44](index=44&type=chunk) - The fair value of other non-current liabilities is classified under Level 2, amounting to **RMB379,773 thousand** as of June 30, 2025[46](index=46&type=chunk) [16. Contingent Liabilities](index=21&type=section&id=16.%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[49](index=49&type=chunk) [17. Commitments](index=22&type=section&id=17.%20%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had contracted but unprovided capital commitments of RMB5.4 million, primarily for plant and machinery - Contracted but unprovided capital commitments: **RMB5,430 thousand** as of June 30, 2025 (December 31, 2024: RMB7,720 thousand), primarily for plant and machinery[50](index=50&type=chunk) [18. Related Party Transactions](index=22&type=section&id=18.%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) During the period, the Group engaged in product sales and purchase transactions with related parties, primarily entities controlled by close family members of the company's controlling party, and key management personnel remuneration increased - Sales of products and services to Hebei Huage Graphene Materials Co., Ltd. amounted to **RMB31 thousand** in H1 2025[52](index=52&type=chunk) - Purchases of products and services from Cangzhou Aomu Agricultural Development Co., Ltd. amounted to **RMB84 thousand** and from Dezhou Wugu Shishang Food Technology Co., Ltd. to **RMB77 thousand** in H1 2025[52](index=52&type=chunk) - All related party transactions were conducted at published prices and terms, with related parties controlled by close family members of the Group's controlling party[53](index=53&type=chunk)[54](index=54&type=chunk) - Remuneration paid to key management personnel: **RMB5,550 thousand** for H1 2025 (H1 2024: RMB3,461 thousand)[55](index=55&type=chunk) [19. Dividends](index=23&type=section&id=19.%20%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of RMB0.015 per ordinary share, an increase from the same period last year - Final dividend of **RMB0.025** per ordinary share for 2024, totaling **RMB24,267 thousand**, was declared and paid in H1 2025[56](index=56&type=chunk) - The Board resolved to declare an interim dividend of **RMB0.015** per ordinary share (H1 2024: interim dividend of RMB0.005 and special dividend of RMB0.025 per ordinary share)[56](index=56&type=chunk) [20. Events After the Reporting Period](index=23&type=section&id=20.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the Board declared an interim dividend on August 25, 2025 - On August 25, 2025, the Board declared an interim dividend for the six months ended June 30, 2025[57](index=57&type=chunk) [21. Approval of Interim Financial Information](index=23&type=section&id=21.%20%E6%89%B9%E5%87%86%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) The Group's unaudited interim condensed consolidated financial information for the six months ended June 30, 2025, was authorized for issue by the Board on August 25, 2025 - The unaudited interim condensed consolidated financial information was authorized for issue by the Board on August 25, 2025, in accordance with a Board resolution[58](index=58&type=chunk) [Management Discussion and Analysis](index=24&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the Group's financial performance, operational highlights, and future outlook for the reporting period [Performance Review](index=24&type=section&id=%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) During the period, overall Group revenue and gross profit decreased year-on-year, but the pigment intermediates and new materials segment performed strongly with significant growth in both, while battery materials and dye and agrochemical intermediates faced market challenges with declining revenue and gross profit [Operating Segment Performance](index=24&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E6%A5%AD%E7%B8%BE) This section details the revenue and profit performance of each operating segment, highlighting key drivers and challenges - Overall revenue decreased by **7.1%** year-on-year to **RMB933.5 million**, and gross profit decreased by **19.7%** to **RMB116.8 million**, with the overall gross profit margin falling to **12.5%**[59](index=59&type=chunk)[74](index=74&type=chunk) - Profit attributable to owners of the parent decreased by **40.4%** year-on-year to **RMB9.3 million**, with the profit margin falling to **1.0%**[60](index=60&type=chunk) - Battery materials segment revenue decreased by **16.9%** year-on-year to **RMB234.3 million**, accounting for approximately **25.1%** of total revenue; gross profit decreased by **76.1%** to **RMB-53.9 million**, with a gross profit margin of **-23.0%**; sales volume decreased due to focus on high-performance products and intense competition, while average selling price increased, but production costs rose due to increased shutdown costs from Cangzhou factory's technical upgrade[61](index=61&type=chunk)[62](index=62&type=chunk) - Dye and agrochemical intermediates segment revenue decreased by **17.1%** year-on-year to **RMB416.5 million**, accounting for approximately **44.6%** of total revenue; overall gross profit decreased by **52.2%** to **RMB44.9 million**, with a gross profit margin of **10.8%**; average selling price of DSD acid decreased due to market fluctuations, but sales volume of iron oxide red to battery material customers significantly increased; agrochemical intermediates experienced declines in both sales volume and average selling price due to supply-demand imbalance and intensified competition[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - Pigment intermediates and new materials segment revenue increased by **28.2%** year-on-year to **RMB282.7 million**, accounting for approximately **30.3%** of total revenue; overall gross profit increased by **53.3%** to **RMB125.9 million**, with a gross profit margin of **44.5%**; growth was primarily driven by increased downstream demand and supply shortages from competitors, leading to a significant increase in product sales volume[67](index=67&type=chunk)[68](index=68&type=chunk) [Exports](index=28&type=section&id=%E5%87%BA%E5%8F%A3) Export revenue increased by 20.9% year-on-year to RMB207.7 million, representing 22.2% of total revenue, primarily driven by increased sales to India and Indonesia - Export revenue was approximately **RMB207.7 million**, a year-on-year increase of **20.9%**[69](index=69&type=chunk) - Export revenue accounted for approximately **22.2%** of total revenue (H1 2024: 17.1%)[69](index=69&type=chunk) - Export growth was mainly due to increased export sales to India and Indonesia[69](index=69&type=chunk) [Business Outlook](index=28&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) Facing complex domestic and international economic environments, the company will continue to optimize sales strategies, upgrade product technology, focus on high-performance battery materials, see a market recovery in dye and agrochemical intermediates, maintain strong performance in pigment intermediates and new materials, and actively advance Tsaker Chemical's listing on the Beijing Stock Exchange - China's economy is experiencing a moderate recovery but faces internal and external pressures, alongside global geopolitical tensions and trade uncertainties[70](index=70&type=chunk) - Battery materials: optimizing sales strategies, divesting from low-end market competition, focusing on high-performance lithium iron phosphate products, with a new generation of products already in small-batch commercial application, and comprehensive technical upgrades at the Cangzhou factory to enhance performance and reduce costs[71](index=71&type=chunk) - Dye and agrochemical intermediates: market performance is recovering, iron oxide red products successfully expanded into battery material applications, and agrochemical intermediates effectively suppressed competitors through stable customer relationships and flexible strategies, leading to increased sales volume[72](index=72&type=chunk) - Pigment intermediates and new materials: strong market performance with significant increases in sales volume and revenue, and new material BPDA products achieved mass production and positive gross profit[73](index=73&type=chunk) - The proposed transfer of indirect non-wholly owned subsidiary Tsaker Chemical to the Beijing Stock Exchange has made phased progress, with the listing application submitted and accepted[73](index=73&type=chunk) - The company will adhere to a proactive and stable strategy, driven by continuous R&D, deepening technological innovation and process iteration, and coordinating the development of all business segments[73](index=73&type=chunk) [Revenue and Gross Profit](index=30&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%AF%9B%E5%88%A9) During the period, Group revenue decreased by 7.1% year-on-year to RMB933.5 million, and gross profit decreased by 19.7% to RMB116.8 million, resulting in a gross profit margin of 12.5% - Revenue was approximately **RMB933.5 million**, a year-on-year decrease of **7.1%**[74](index=74&type=chunk) - Gross profit was approximately **RMB116.8 million**, a year-on-year decrease of **19.7%**[74](index=74&type=chunk) - Gross profit margin was approximately **12.5%** (H1 2024: 14.5%)[74](index=74&type=chunk) [Net Profit and Net Profit Margin](index=30&type=section&id=%E6%B7%A8%E5%88%A9%E5%8F%8A%E6%B7%A8%E5%88%A9%E7%8E%87) During the period, Group net profit increased by 27.7% year-on-year to RMB30.0 million, with the net profit margin rising to 3.2% - Net profit was approximately **RMB30.0 million**, a year-on-year increase of **27.7%**[75](index=75&type=chunk) - Net profit margin was approximately **3.2%** (H1 2024: 2.3%)[75](index=75&type=chunk) [Selling and Distribution Expenses](index=30&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses decreased by 52.4% year-on-year to RMB9.0 million, primarily due to strict cost control measures - Selling and distribution expenses were approximately **RMB9.0 million**, a year-on-year decrease of **RMB9.9 million**[76](index=76&type=chunk) - Representing **1.0%** of revenue (H1 2024: 1.9%)[76](index=76&type=chunk) - The decrease was mainly due to the implementation of strict cost control measures[76](index=76&type=chunk) [Administrative Expenses](index=30&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses decreased by 5.9% year-on-year to RMB70.3 million, primarily due to reductions in technical research and development fees and intermediary service fees - Administrative expenses were approximately **RMB70.3 million**, a year-on-year decrease of **RMB4.4 million**[77](index=77&type=chunk) - Representing **7.5%** of revenue (H1 2024: 7.4%)[77](index=77&type=chunk) - The decrease was mainly due to reductions in technical research and development fees, intermediary service fees, and other expenses[77](index=77&type=chunk) [Finance Costs](index=30&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs decreased by 19.9% year-on-year to RMB17.7 million, primarily due to lower interest rates on interest-bearing bank and other borrowings, with an increase in net exchange gains - Finance costs were approximately **RMB17.7 million**, a year-on-year decrease of **RMB4.4 million**[78](index=78&type=chunk) - The decrease was mainly due to lower interest rates on interest-bearing bank and other borrowings[78](index=78&type=chunk) - Net exchange gains were approximately **RMB0.7 million** (H1 2024: approximately RMB0.2 million), primarily affected by fluctuations in the RMB exchange rate against the US dollar[79](index=79&type=chunk) [Income Tax Expense](index=31&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 59.7% year-on-year to RMB2.8 million, primarily due to a reduction in current taxable income; the company applies varying tax rates across regions, with Tsaker Chemical enjoying preferential high-tech enterprise rates - Income tax expense was approximately **RMB2.8 million**, a year-on-year decrease of **RMB4.2 million**[80](index=80&type=chunk) - The decrease was mainly due to a reduction in current taxable income[80](index=80&type=chunk) - Chinese subsidiaries generally apply a **25%** tax rate, Tsaker Chemical enjoys a **15%** preferential tax rate, Hong Kong subsidiaries apply a two-tiered tax system of **8.25%/16.5%**, and Singapore subsidiaries apply a **17%** tax rate[80](index=80&type=chunk) [Cash Flows](index=31&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) Net cash inflow from operating activities significantly increased, net cash outflow from investing activities rose, and net cash outflow from financing activities substantially decreased, reflecting higher cash payments from sales, increased property, plant, and equipment maintenance expenses, and reduced loan repayments and dividend distributions - Net cash inflow from operating activities was approximately **RMB69.9 million**, a year-on-year increase of **RMB34.7 million**, primarily due to a higher proportion of cash payments from sales receipts[81](index=81&type=chunk) - Net cash outflow from investing activities was approximately **RMB18.8 million**, a year-on-year increase of **RMB8 million**, mainly due to increased property, plant, and equipment maintenance expenses[81](index=81&type=chunk) - Net cash outflow from financing activities was approximately **RMB18.0 million**, a year-on-year decrease of **RMB116.3 million**, primarily due to reduced loan repayments and dividend distributions[81](index=81&type=chunk) [Financial Policy](index=31&type=section&id=%E8%B2%A1%E6%94%BF%E6%94%BF%E7%AD%96) The Group adopts a prudent financial management approach, maintaining a robust liquidity position, primarily meeting working capital needs through internal operating cash flows and bank borrowings - The Group adopts a prudent financial management approach and closely monitors its liquidity position[82](index=82&type=chunk) - Daily working capital is primarily sourced from cash flows generated from internal operations and bank borrowings[83](index=83&type=chunk) [Gearing Ratio](index=32&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the gearing ratio increased to 12.8% - The gearing ratio (interest-bearing bank and other borrowings divided by total equity) was approximately **12.8%** (December 31, 2024: approximately 10.7%)[86](index=86&type=chunk) [Current Assets](index=32&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) As of June 30, 2025, total current assets were RMB1,325.2 million, primarily comprising inventories, trade and bills receivables, and cash and cash equivalents; inventory turnover days increased, while trade and bills receivables turnover days remained stable - Total current assets were approximately **RMB1,325.2 million** (December 31, 2024: approximately RMB1,562.3 million)[87](index=87&type=chunk) - Key components: inventories approximately **RMB332.6 million**, trade and bills receivables approximately **RMB625.7 million**, and cash and cash equivalents approximately **RMB300.4 million**[87](index=87&type=chunk) - Inventory turnover days: **67 days** (year ended December 31, 2024: 52 days), an increase mainly due to higher ending inventory quantities to address market uncertainties[88](index=88&type=chunk) - Trade and bills receivables turnover days: **154 days** (year ended December 31, 2024: 143 days), remaining stable[89](index=89&type=chunk) [Current Liabilities](index=33&type=section&id=%E6%B5%81%E5%8B%95%E8%B2%A0%E5%82%B5) As of June 30, 2025, total current liabilities significantly decreased to RMB907.8 million from December 31, 2024, primarily due to reductions in other payables and accrued expenses, and contract liabilities - Total current liabilities were approximately **RMB907.8 million** (December 31, 2024: approximately RMB1,200.0 million)[91](index=91&type=chunk) - Key components: trade and bills payables approximately **RMB384.3 million**, other payables and accrued expenses and contract liabilities approximately **RMB260.8 million**, and interest-bearing bank and other borrowings approximately **RMB251.8 million**[91](index=91&type=chunk) - Trade and bills payables turnover days: **85 days** (year ended December 31, 2024: 80 days), remaining relatively stable[92](index=92&type=chunk) - Other payables and accrued expenses and contract liabilities decreased by approximately **RMB334 million** in total, mainly due to a reduction in unrecognised endorsed bills receivable[93](index=93&type=chunk) [Pledged Assets](index=34&type=section&id=%E5%B7%B2%E6%8A%B5%E8%B3%AA%E6%8A%BC%E8%B3%87%E7%94%A2) As of June 30, 2025, approximately RMB182.3 million of property, plant, and equipment and right-of-use assets were pledged to secure bank borrowings and credit facilities - Approximately **RMB182.3 million** of property, plant and equipment and right-of-use assets have been pledged to secure bank borrowings and credit facilities[94](index=94&type=chunk) [Material Acquisitions, Disposals and Major Investments](index=34&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During the reporting period, the Group did not undertake any material acquisitions, disposals, or major investments - For the six months ended June 30, 2025, the Group had no material acquisitions, disposals, or major investments[95](index=95&type=chunk) [Capital Commitments](index=34&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) Details regarding the Group's capital commitments are provided in Note 17 to the financial statements - Details of capital commitments are provided in Note 17 to the financial statements[96](index=96&type=chunk) [Future Plans for Material Investments or Capital Assets](index=34&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E6%9C%AA%E4%BE%86%E8%A8%88%E5%88%92) As of the date of this announcement, the Group has no other plans for material investments or acquisitions of capital assets - As of the date of this announcement, the Group has no other plans for material investments or acquisitions of capital assets[97](index=97&type=chunk) [Contingent Liabilities](index=34&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[98](index=98&type=chunk) [Foreign Exchange Risk](index=34&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group is exposed to foreign exchange risk primarily related to operating activities, currently without foreign currency hedging, but the Board closely monitors and considers hedging options - The Group is exposed to foreign exchange risk primarily related to its operating activities and currently has no foreign currency hedging policy[99](index=99&type=chunk) - The Board closely monitors exchange rate fluctuations and will consider hedging if necessary[99](index=99&type=chunk) [Employees and Remuneration Policies](index=35&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 2,098 employees, with total staff costs increasing year-on-year primarily due to salary growth; the company is committed to building an HR policy system, offering incentive rewards and training programs - As of June 30, 2025, the Group had **2,098** employees (June 30, 2024: 2,117 employees)[100](index=100&type=chunk) - Total staff costs were approximately **RMB129.0 million** (H1 2024: approximately RMB111.6 million), with the increase mainly due to higher employee salaries and wages[100](index=100&type=chunk) - The company provides benefits such as bonuses, training programs, pension schemes, medical coverage, and housing provident funds[100](index=100&type=chunk) [Events After Review Period](index=35&type=section&id=%E5%9B%9E%E9%A1%A7%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Other than the interim dividend declaration disclosed in Note 20 to the financial statements, the Group had no other material events after the reporting period - Other than what is disclosed in Note 20 to the financial statements, the Group had no other material events after the reporting period[101](index=101&type=chunk) [Interim Dividend](index=35&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of RMB0.015 per ordinary share, totaling approximately RMB14.5 million, payable on November 28, 2025 - The Board resolved to declare an interim dividend of **RMB0.015** per ordinary share (H1 2024: interim dividend of RMB0.005 and special dividend of RMB0.025 per ordinary share)[102](index=102&type=chunk) - The total interim dividend is approximately **RMB14,531 thousand**, payable on November 28, 2025[102](index=102&type=chunk) - The dividend will be declared in RMB and paid in HKD, at an exchange rate of HKD1 to RMB0.913[102](index=102&type=chunk) [Corporate Governance and Other Information](index=36&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers the company's corporate governance practices, compliance with relevant codes, and other pertinent information [Purchase, Sale or Redemption of the Company's Listed Securities](index=36&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the period, the company repurchased a total of 1,706,500 shares on the Stock Exchange for a total consideration of HKD1,365,560, with some repurchased shares cancelled, as the Board believed the share value did not reflect its intrinsic value - The company repurchased a total of **1,706,500 shares** on the Stock Exchange for a total consideration of **HKD1,365,560**[105](index=105&type=chunk)[107](index=107&type=chunk) - Of the repurchased shares, **1,082,500** shares and **624,000** shares were cancelled on February 19, 2025, and August 6, 2025, respectively[105](index=105&type=chunk) - The share repurchases were made as the Board believed the company's share value did not reflect its intrinsic value[105](index=105&type=chunk) [Corporate Governance Code](index=37&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company adopted the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules and complied with all provisions during the period, except for the chairman and chief executive officer being the same person, though the Board believes sufficient safeguards ensure power balance - The company has adopted the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[109](index=109&type=chunk) - Except for the roles of Chairman and Chief Executive Officer being held by Mr. Ge Yi, the company has complied with all code provisions during the reporting period[109](index=109&type=chunk) - The Board believes that Mr. Ge Yi holding both roles ensures strong and consistent leadership, with sufficient safeguards in place to ensure a balance of power[109](index=109&type=chunk)[110](index=110&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=37&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) The company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period, with no instances of employee breaches found - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[111](index=111&type=chunk) - All directors confirmed compliance with the Model Code throughout the reporting period, and no instances of employee breaches were identified[111](index=111&type=chunk) [Audit Committee and Review of Financial Statements](index=38&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83%E5%8F%8A%E5%AF%A9%E9%96%B1%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Board established an audit committee comprising three independent non-executive directors, which reviewed the Group's unaudited interim financial statements, and an independent auditor performed a review of the interim financial information - The Board has established an audit committee comprising three independent non-executive directors, which has reviewed the Group's unaudited interim financial statements[112](index=112&type=chunk) - Tianjian International Certified Public Accountants Limited, the independent auditor, has performed an independent review of the interim financial information[112](index=112&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=38&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the Stock Exchange and the company's website, with the interim report to be posted in due course - The interim results announcement has been published on the Stock Exchange website www.hkexnews.hk and the company's website www.tsaker.com[113](index=113&type=chunk) - The interim report will be posted in due course[113](index=113&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Interim Results Overview](index=1&type=section&id=Interim%20Results%20Overview) H1 2025 revenue grew **9.4%** to **$10.5 million**, gross profit up **51.1%** to **67.6%** margin, and loss narrowed **36.2%** to **$28.4 million** Key Financial Data Comparison for H1 2025 | Metric | 2025 H1 (million USD) | 2024 H1 (million USD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 10.5 | 9.6 | 9.4% | | Early Detection & Precision Multi-omics Revenue | 10.5 | 7.0 | 50.0% | | Gross Profit | 7.1 | 4.7 | 51.1% | | Early Detection & Precision Multi-omics Gross Profit | 7.1 | 3.5 | 102.9% | | Loss Attributable to Equity Holders | (28.4) | (44.5) | -36.2% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, revenue reached **$10.5 million**, gross profit **$7.1 million**, operating loss narrowed, and loss attributable to equity holders decreased to **$28.4 million** Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | Revenue | 10,471,494 | 9,566,753 | | Cost of Sales | (3,368,970) | (4,901,164) | | Gross Profit | 7,102,524 | 4,665,589 | | Other Income and Other Gains / (Losses) | 8,766,264 | (3,279,511) | | Selling and Distribution Expenses | (6,287,446) | (7,044,074) | | Research and Development Expenses | (9,225,967) | (10,693,149) | | General and Administrative Expenses | (20,233,209) | (21,217,439) | | Results from Operating Activities | (19,956,308) | (37,568,584) | | Loss Before Tax | (28,254,881) | (44,387,160) | | Loss for the Period | (28,228,236) | (44,325,936) | | Loss Attributable to Equity Holders of the Company | (28,352,272) | (44,451,768) | | Basic and Diluted Loss Per Share | (0.185) | (0.370) | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to **$163.2 million**, net current assets turned positive to **$96.6 million**, and total equity shifted from deficit to **$114.5 million** due to convertible redeemable preferred shares conversion Summary of Consolidated Statement of Financial Position (as of June 30) | Metric | June 30, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | Total Assets | 163,211,156 | 71,354,352 | | Total Non-current Assets | 33,485,946 | 36,557,943 | | Total Current Assets | 129,725,210 | 34,796,409 | | Total Liabilities | 48,684,033 | 269,595,191 | | Total Current Liabilities | 33,137,108 | 48,108,811 | | Total Non-current Liabilities | 15,546,925 | 221,486,380 | | Net Current Assets / (Liabilities) | 96,588,102 | (13,312,402) | | Total Equity / (Deficiency) | 114,527,123 | (198,240,839) | [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) This interim financial information is prepared under HKEX Listing Rules and IAS 34, using consistent accounting policies with the 2024 annual financial statements, including condensed consolidated financial statements and explanatory notes - Interim financial reports are prepared in accordance with the HKEX Listing Rules and International Accounting Standard 34, adopting the same accounting policies as the 2024 annual financial statements[10](index=10&type=chunk) - The report includes condensed consolidated financial statements and selected explanatory notes, aiming to explain significant changes in financial position and performance since December 31, 2024[11](index=11&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) Revisions and new standards of IFRS effective in the current accounting period have not materially impacted the Group's current or prior period results and financial position - Multiple amendments and new standards issued by the IASB have not had a material impact on the Group's current or prior period results and financial position[12](index=12&type=chunk) [Business Overview](index=5&type=section&id=Business%20Overview) [Company Profile](index=5&type=section&id=Company%20Profile) Mirxes Holding Company Limited, incorporated in the Cayman Islands on November 17, 2020, and listed on the HKEX Main Board on May 23, 2025, specializes in developing and commercializing precise, non-invasive, affordable, blood-based miRNA test kit products for early cancer and other disease detection - The company was incorporated in the Cayman Islands on November 17, 2020, and listed on the Main Board of the Hong Kong Stock Exchange on May 23, 2025[8](index=8&type=chunk) - The Group primarily engages in the development and commercialization of precise, non-invasive, affordable, blood-based miRNA test kit products for early detection of cancer and other diseases[8](index=8&type=chunk) [Product Pipeline](index=18&type=section&id=Product%20Pipeline) The company boasts a diverse miRNA diagnostic pipeline for gastric, lung, colorectal, liver, breast, and multi-cancer detection, alongside pulmonary hypertension and heart failure, with core product GASTROClearTM commercialized in Singapore and granted FDA Breakthrough Device designation - As of June 30, 2025, the company has one core product (GASTROClearTM), two other commercialized products (LUNGClearTM and FortitudeTM), and six preclinical-stage candidate products[40](index=40&type=chunk) - GASTROClearTM is the world's first and only approved molecular diagnostic IVD product for gastric cancer screening, successfully commercialized in Singapore and granted FDA Breakthrough Device designation[43](index=43&type=chunk) - Various candidate products including LUNGClearTM, CRC-1, LV-1, BC-1, CADENCE, PHinder, and HF-1 are in different development stages, covering lung cancer, colorectal cancer, liver cancer, breast cancer, multi-cancer detection, pulmonary hypertension, and heart failure[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) [Core Product: GASTROClearTM](index=18&type=section&id=Core%20Product%3A%20GASTROClearTM) GASTROClearTM is the world's first and only approved molecular diagnostic IVD for gastric cancer screening, successfully commercialized in Singapore and granted FDA Breakthrough Device designation - GASTROClearTM is the world's first and only approved molecular diagnostic IVD product for gastric cancer screening, comprising 12 miRNA biomarkers[40](index=40&type=chunk)[43](index=43&type=chunk) - It obtained Singapore HSA Class C IVD certification and successful commercialization in May 2019, CE-IVD certification in November 2017, and US FDA Breakthrough Device designation in May 2023[43](index=43&type=chunk) - The product serves as a supplementary test to the gold standard for gastric cancer screening, and its development experience was a valuable reference for drafting miRNA molecular diagnostic industry standards, including Singapore Standard 656[43](index=43&type=chunk) [Other Candidate Products](index=20&type=section&id=Other%20Candidate%20Products) The company's pipeline includes LUNGClearTM commercialized as LDT in Southeast Asia and Japan, CRC-1 prototyping for IVD registration in Singapore and China, and early-stage development for LV-1, BC-1, CADENCE, PHinder, and HF-1 - LUNGClearTM (lung cancer screening) has been commercialized as an LDT service in Southeast Asia since December 2022 and in Japan since January 2023, aiming to enhance early lung cancer detection and reduce LDCT scan radiation[44](index=44&type=chunk) - CRC-1 (colorectal cancer screening) is expected to complete prototyping in H2 2025, with plans for IVD registration in Singapore and China, and clinical trials anticipated to start in 2026[45](index=45&type=chunk) - LV-1 (liver cancer screening), BC-1 (

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，並表明概不就因本公告全部或任何部分內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 BANK OF GANSU CO., LTD.* 甘肅銀行股份有限公司* （於中華人民共和國註冊成立的股份有限公司） （股份代號：2139） 承董事會命 甘肅銀行股份有限公司* 董事長 劉青 甘肅蘭州 2025年8月25日 於本公告日期，董事會成員包括執行董事劉青先生及王錫真先生；非執行董事 張斌先生、張軍平先生、葉榮先生及楊春梅女士；以及獨立非執行董事劉光華先 生、王雷先生及侯百燊先生。 * 甘肅銀行股份有限公司並非香港法例第155章銀行業條例所指認可機構，不受限於香港金 融管理局的監督，亦不獲授權在香港經營銀行╱接受存款業務。 目 截至2025年6月30日止六個月之中期業績公告 甘肅銀行股份有限公司（「* 本行」）董事會（「董事會」）欣然宣佈本行及其附屬公司 截至2025年6月30日止六個月之未經審核中期業績。本公告列載本行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 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Financial Highlights Overview](index=1&type=section&id=Financial%20Highlights_Overview) The company reported significant increases in total revenue, gross profit, and net profit attributable to owners of the parent, alongside an interim cash dividend proposal Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 32,960.16 | 28,866.65 | 14.18% | | Gross Profit | 4,304.61 | 3,653.66 | 17.82% | | Net Profit Attributable to Owners of the Parent | 1,142.69 | 861.26 | 32.68% | | Cash Dividend per 10 Shares | RMB 1.00 (tax inclusive) | - | - | [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [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) During the reporting period, the company's revenue and profit both grew, with profit for the period at **RMB 1,194,275 thousand** and total comprehensive income at **RMB 1,165,018 thousand** Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 32,960,158 | 28,866,649 | | Gross Profit | 4,304,610 | 3,653,655 | | Profit Before Tax | 1,245,648 | 787,389 | | Profit for the Period | 1,194,275 | 880,945 | | Profit for the Period Attributable to Owners of the Company | 1,142,689 | 861,262 | | Total Comprehensive Income for the Period | 1,165,018 | 800,954 | | Basic Earnings Per Share (RMB) | 0.23 | 0.17 | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's non-current assets increased, while current assets and current liabilities both decreased, leading to a reduction in net current assets Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 52,575,732 | 50,243,266 | | Current Assets | 24,677,823 | 30,772,781 | | Current Liabilities | 22,305,454 | 23,065,161 | | Net Current Assets | 2,372,369 | 7,707,620 | | Net Assets | 47,995,837 | 48,845,910 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=7&type=section&id=1.%20General%20Information) Lens Technology Co., Ltd. was incorporated in China, listed on the Shenzhen Stock Exchange in 2015, and its H-shares were listed on the Hong Kong Stock Exchange from July 9, 2025, with the Group primarily engaged in R&D, design, manufacturing, and sales of structural and functional modules, as well as consumer electronics assembly, smart automotive, and other emerging businesses - The company's H-shares were listed on the Main Board of the Hong Kong Stock Exchange on **July 9, 2025**[10](index=10&type=chunk) - The Group's principal business covers R&D, design, manufacturing, and sales of structural components and functional modules, along with consumer electronics assembly, smart automotive, and other emerging sectors[10](index=10&type=chunk) [2. Basis of Preparation and Accounting Policies](index=7&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Stock Exchange, with the first-time application of amendments to IAS 21 having no significant impact on financial position or performance - The financial statements are prepared in accordance with **International Accounting Standard 34** and the **Listing Rules of the Stock Exchange**[11](index=11&type=chunk) - The first-time application of amendments to **International Accounting Standard 21**, 'Lack of Exchangeability', had no significant impact on the financial position and performance[12](index=12&type=chunk) [5. Revenue and Segment Information](index=8&type=section&id=5.%20Revenue%20and%20Segment%20Information) Total revenue for the period was **RMB 32,960.16 million**, primarily from smart devices and computers, with significant contributions also from smart automotive and cockpit, smart wearables, and other smart terminal businesses, and the company operates as a single operating and reportable segment Revenue Analysis by Major End Products and Services | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Smart Devices and Computers | 27,184,821 | 24,015,935 | | Smart Automotive and Cockpit | 3,164,660 | 2,717,527 | | Smart Head-mounted Displays and Wearables | 1,646,553 | 1,435,012 | | Other Smart Terminals | 363,606 | 159,334 | | Other | 600,518 | 538,841 | | **Total** | **32,960,158** | **28,866,649** | - The company operates as a **single operating and reportable segment**[14](index=14&type=chunk) [6. Other Income](index=8&type=section&id=6.%20Other%20Income) Other income for the period was **RMB 310,463 thousand**, primarily comprising government grants and interest income, with a significant increase in government grants Composition of Other Income | Other Income Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 142,156 | 101,481 | | Interest Income | 124,091 | 129,876 | | Compensation Income | 13,875 | 14,390 | | Other | 30,341 | 36,163 | | **Total** | **310,463** | **281,910** | [7. Net Other Gains and Losses](index=9&type=section&id=7.%20Net%20Other%20Gains%20and%20Losses) Net other gains and losses for the period amounted to **RMB 255,142 thousand**, primarily driven by a substantial increase in net foreign exchange gains Composition of Net Other Gains and Losses | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Foreign Exchange Gains | 167,973 | 30,357 | | Net Fair Value Gains from Financial Assets/Liabilities at Fair Value Through Profit or Loss | 74,180 | 110,083 | | Gains (Losses) on Disposal of Property, Plant and Equipment and Intangible Assets | 13,675 | (10,856) | | Other | (686) | — | | **Total** | **255,142** | **129,584** | [8. Income Tax Expense (Credit)](index=9&type=section&id=8.%20Income%20Tax%20Expense%20(Credit)) Income tax expense for the period was **RMB 51,373 thousand**, compared to an income tax credit in the prior period, primarily due to increased profit before tax, with some Chinese subsidiaries enjoying a **15% preferential tax rate** as high-tech enterprises Composition of Income Tax Expense (Credit) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 63,315 | 123,024 | | Under-provision in Prior Years | 23,251 | 2 | | Deferred Tax Credit | (35,193) | (216,582) | | **Total** | **51,373** | **(93,556)** | - The company and certain Chinese subsidiaries are certified as high-tech enterprises, enjoying a **15% preferential tax rate**[17](index=17&type=chunk) [9. Dividends](index=10&type=section&id=9.%20Dividends) The Board approved an interim dividend of **RMB 0.10 per ordinary share** (tax inclusive) for 2025, totaling **RMB 526,023 thousand**, expected to be paid on or before **October 24, 2025** - The Board approved an interim dividend of **RMB 0.10 per ordinary share** (tax inclusive) for 2025, totaling **RMB 526,023 thousand**[19](index=19&type=chunk) - The 2024 final dividend of **RMB 1,983,582 thousand** (**RMB 0.40 per share**) was declared and paid during the current period[19](index=19&type=chunk) [10. Earnings Per Share](index=10&type=section&id=10.%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners of the company for the period were both **RMB 0.23**, an increase from **RMB 0.17** in the prior period Earnings Per Share | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings Per Share | 0.23 | 0.17 | | Diluted Earnings Per Share | 0.23 | 0.17 | [11. Financial Assets (Liabilities) at Fair Value Through Profit or Loss](index=11&type=section&id=11.%20Financial%20Assets%20(Liabilities)%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, total financial assets at fair value through profit or loss significantly increased to **RMB 1,242,678 thousand**, primarily comprising structured deposits and unlisted investments Financial Assets (Liabilities) at Fair Value Through Profit or Loss | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Structured Deposits | 1,081,917 | 354,917 | | Unlisted Investments at Fair Value Through Profit or Loss | 138,443 | — | | Deliverable Forward Contracts | (15,432) | (9,620) | | Listed Equity Securities | 589 | — | | **Total** | **1,205,517** | **345,297** | | **Financial Assets at Fair Value Through Profit or Loss** | **1,242,678** | **354,917** | | **Financial Liabilities at Fair Value Through Profit or Loss** | **(37,161)** | **(9,620)** | [12. Trade and Bills Receivables](index=11&type=section&id=12.%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables amounted to **RMB 8,754,981 thousand**, a decrease from the end of 2024, with the largest portion being non-overdue amounts Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 8,877,537 | 11,006,529 | | Less: Provision for Expected Credit Losses | (123,393) | (148,312) | | **Total** | **8,754,981** | **10,865,736** | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Not Overdue | 8,631,198 | 10,610,390 | | Overdue 0-90 Days | 187,242 | 363,411 | | Overdue 91-180 Days | 33,428 | 9,396 | | Overdue 181-365 Days | 15,957 | 4,236 | | Overdue Over One Year | 9,712 | 19,096 | [13. Prepayments and Other Receivables](index=12&type=section&id=13.%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, total prepayments and other receivables increased to **RMB 2,206,002 thousand** from the end of 2024, primarily comprising recoverable VAT and prepayments for property, plant, and equipment Composition of Prepayments and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Recoverable VAT | 586,999 | 344,998 | | Prepayments for Property, Plant and Equipment | 928,579 | 1,020,338 | | Prepayments for Materials and Other | 148,792 | 174,304 | | Refundable Deposits for Land Use Rights | 200,000 | 200,000 | | Refundable Deposits for Project Performance | 150,000 | 150,000 | | Other Receivables | 157,873 | 141,181 | | **Total** | **2,206,002** | **2,038,769** | [14. Trade and Other Payables](index=13&type=section&id=14.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased to **RMB 15,578,880 thousand** from the end of 2024, with trade payables constituting the largest portion Composition of Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 9,363,757 | 10,388,566 | | Construction Payables | 3,895,189 | 3,616,325 | | Accrued Staff Costs | 1,440,892 | 1,532,142 | | **Total** | **15,578,880** | **16,365,834** | [15. Borrowings](index=13&type=section&id=15.%20Borrowings) During the period, the Group repaid borrowings of **RMB 2,009,811 thousand**, with floating-rate bank borrowings bearing interest at the Loan Prime Rate, subject to certain upward or downward adjustments - Borrowings of **RMB 2,009,811 thousand** were repaid during the period, a decrease from **RMB 2,872,598 thousand** in the prior period[25](index=25&type=chunk) - Floating-rate bank borrowings bear interest at the Loan Prime Rate, with interest rates reset every **1 to 12 months**[25](index=25&type=chunk) [16. Share Capital](index=14&type=section&id=16.%20Share%20Capital) As of June 30, 2025, the company's share capital was **RMB 4,982,772 thousand**, slightly reduced due to the repurchase and cancellation of restricted A-shares under the restricted share scheme Changes in Share Capital | Item | June 30, 2025 (Number of Shares) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Registered, Issued and Fully Paid Ordinary Shares | 4,982,772,171 | 4,982,772 | | Repurchase and Cancellation of Restricted A-shares | (107,100) | (107) | [17. Events After the Reporting Period](index=14&type=section&id=17.%20Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the company's H-shares were listed on the Stock Exchange on **July 9, 2025**, with a total of **301,595,200 ordinary shares** issued through public offering and overallotment - The company's H-shares were listed on the Stock Exchange on **July 9, 2025**[27](index=27&type=chunk) - A total of **301,595,200 ordinary shares** were issued through public offering and overallotment[27](index=27&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [I. Industry Development During the Reporting Period](index=15&type=section&id=I.%20Industry%20Development%20During%20the%20Reporting%20Period) AI technology is profoundly empowering consumer electronics, smart cockpits, and embodied AI, driving market demand growth and industrial upgrading, with the company actively seizing market opportunities through its full-产业链 integration capabilities and innovative products - AI empowers innovation in consumer electronics terminals, with Canalys projecting AI smartphone penetration to rise from **34% in 2025** to **54% in 2028**[28](index=28&type=chunk) - The smart cockpit sector is undergoing multimodal interaction innovation, with China Business Industry Research Institute forecasting the passenger vehicle smart cockpit market to exceed **RMB 156.4 billion** in **2025**[29](index=29&type=chunk) - The embodied AI industry has entered its first year of scaled growth, with Gaogong Robot predicting the global embodied AI market to reach **RMB 6.339 billion** in **2025** and potentially surpass **RMB 400 billion** by **2035**[30](index=30&type=chunk) [II. Group's Operating Performance](index=16&type=section&id=II.%20Group's%20Operating%20Performance) In H1 2025, the company's operations progressed steadily, achieving significant growth in both operating revenue and net profit attributable to owners of the parent, with the H-share listing raising capital for global expansion and product portfolio optimization, and all major business segments maintaining growth - The company's H-shares were listed on the Main Board of the Hong Kong Stock Exchange, raising capital for global expansion and optimizing the product portfolio[32](index=32&type=chunk) Operating Performance for H1 2025 | Indicator | H1 2025 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 32,960.16 | 14.18% | | Net Profit Attributable to Owners of the Parent | 1,142.69 | 32.68% | | Net Profit Attributable to Owners of the Parent (Excluding Non-recurring Items) | 940.08 | 41.85% | | Basic Earnings Per Share | RMB 0.23 | 35.29% | [1. Smart Devices and Computers](index=16&type=section&id=1.%20Smart%20Devices%20and%20Computers) This business segment achieved significant revenue growth, with the company solidifying its leading position in the market for appearance parts, structural components, and functional modules, and successfully mass-producing metal frames for multiple high-end models Revenue from Smart Devices and Computers Business | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Smart Devices and Computers | 27,184.82 | 13.19% | - The company solidified its leading position in the market for appearance parts, structural components, and functional modules, including glass, ceramics, sapphire, and metal[32](index=32&type=chunk) - In collaboration with leading clients, the company mass-produced metal frames for several new high-end models, achieving rapid growth in market share and profitability[32](index=32&type=chunk) [2. Smart Automotive and Cockpit](index=17&type=section&id=2.%20Smart%20Automotive%20and%20Cockpit) Revenue from smart automotive and cockpit business grew, with core product lines achieving synergistic volume production, and ultra-thin laminated car window glass successfully integrated into new vehicle models of leading automakers Revenue from Smart Automotive and Cockpit Business | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Smart Automotive and Cockpit | 3,164.66 | 16.45% | - Core product lines such as central control modules, smart B/C pillars, charging piles, cockpit decorative parts, and wireless charging modules achieved synergistic volume production, with communication modules and domain controllers realizing batch delivery[33](index=33&type=chunk) - Ultra-thin laminated car window glass was successfully integrated into the mass production system of new models for leading domestic automakers, with capacity expansion initiated based on customer demand[33](index=33&type=chunk) [3. Smart Head-mounted Displays and Wearables](index=17&type=section&id=3.%20Smart%20Head-mounted%20Displays%20and%20Wearables) Revenue from smart head-mounted displays and wearables grew, with the company achieving breakthroughs in core processes such as optical waveguide lens yield optimization and high-precision automated assembly, and successfully mass-producing AI glasses Revenue from Smart Head-mounted Displays and Wearables Business | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Smart Head-mounted Displays and Wearables | 1,646.55 | 14.74% | - Breakthroughs were achieved in core process areas such as optical waveguide lens yield optimization and high-precision automated assembly[34](index=34&type=chunk) - Successfully achieved large-scale mass production and delivery of complete AI glasses for leading domestic clients[34](index=34&type=chunk) [4. Other Smart Terminals](index=17&type=section&id=4.%20Other%20Smart%20Terminals) Revenue from other smart terminals achieved significant growth, with substantial progress in collaborations with leading domestic and international embodied AI enterprises, and batch delivery of core components and complete machine assembly Revenue from Other Smart Terminals Business | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Other Smart Terminals | 363.61 | 128.2% | - Substantial progress was made in collaborations with leading domestic and international embodied AI enterprises, achieving batch delivery of core components such as joint modules, dexterous hands, and exoskeleton devices, as well as complete machine assembly[35](index=35&type=chunk) - Revenue from the smart retail product line significantly increased year-on-year, forming diversified growth engines[35](index=35&type=chunk) [III. Financial Review](index=18&type=section&id=III.%20Financial%20Review) This section provides a detailed review of changes in various financial indicators during the reporting period, including revenue, gross profit, expenses, net other gains and losses, reversal of impairment losses, and income tax expense, along with explanations for key variations [Revenue](index=18&type=section&id=Revenue_Financial%20Review) Total revenue increased by **14.18%** year-on-year during the reporting period, primarily driven by comprehensive growth across smart devices and computers, smart automotive and cockpit, smart wearables, and other smart terminal businesses Revenue Growth Details | Business Segment | H1 2025 Revenue (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Total Revenue | 32,960.16 | 14.18% | | Smart Devices and Computers | Increased by 3,168.89 | 13.19% | | Smart Automotive and Cockpit | Increased by 447.13 | 16.45% | | Smart Head-mounted Displays and Wearables | Increased by 211.54 | 14.74% | | Other Smart Terminals | Increased by 204.27 | 128.2% | [Gross Profit and Gross Margin](index=18&type=section&id=Gross%20Profit%20and%20Gross%20Margin_Financial%20Review) Gross profit increased by **17.82%** year-on-year during the reporting period, with gross margin improving by **0.40 percentage points** to **13.06%**, reflecting enhanced profitability Changes in Gross Profit and Gross Margin | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Gross Profit | 4,304.61 | 3,653.66 | 17.82% | | Gross Margin | 13.06% | 12.66% | 0.40pp | [Other Income](index=18&type=section&id=Other%20Income_Financial%20Review) Other income increased by **10.13%** year-on-year during the reporting period, primarily due to an increase in government grants Changes in Other Income | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Other Income | 310.46 | 281.91 | 10.13% | - Primarily due to an increase in **government grants**[39](index=39&type=chunk) [Selling Expenses](index=18&type=section&id=Selling%20Expenses_Financial%20Review) Selling expenses decreased by **10.91%** year-on-year during the reporting period, primarily due to reductions in intermediary service fees, sample and packaging costs, and sorting fees Changes in Selling Expenses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | | Selling Expenses | 281.77 | 316.29 | -10.91% | - Primarily due to a decrease in intermediary service fees, sample and packaging costs, and sorting fees[40](index=40&type=chunk) [Administrative Expenses](index=19&type=section&id=Administrative%20Expenses_Financial%20Review) Administrative expenses increased by **5.31%** year-on-year during the reporting period, primarily due to higher staff remuneration and professional service fees Changes in Administrative Expenses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Administrative Expenses | 1,568.07 | 1,489.01 | 5.31% | - Primarily due to an increase in staff remuneration and professional service fees[41](index=41&type=chunk) [Research and Development Expenses](index=19&type=section&id=Research%20and%20Development%20Expenses_Financial%20Review) Research and development expenses increased by **29.15%** year-on-year during the reporting period, primarily due to increased investment in R&D for new projects, products, and areas Changes in Research and Development Expenses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Research and Development Expenses | 1,643.86 | 1,272.82 | 29.15% | - Primarily due to increased R&D investment in new projects, new products, and new areas[42](index=42&type=chunk) [Finance Costs](index=19&type=section&id=Finance%20Costs_Financial%20Review) Finance costs decreased by **21.50%** year-on-year during the reporting period, primarily due to the repayment of certain bank loans, including both long-term and short-term borrowings Changes in Finance Costs | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | | Finance Costs | 155.86 | 198.55 | -21.50% | - Primarily due to the repayment of certain bank loans, including both long-term and short-term borrowings[43](index=43&type=chunk) [Net Other Gains and Losses](index=19&type=section&id=Net%20Other%20Gains%20and%20Losses_Financial%20Review) Net other gains and losses increased by **96.90%** year-on-year during the reporting period, primarily due to increased net foreign exchange gains from USD to RMB settlements Changes in Net Other Gains and Losses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Other Gains and Losses | 255.14 | 129.58 | 96.90% | - Primarily due to increased net foreign exchange gains from USD to RMB settlements[44](index=44&type=chunk) [Net Reversal of Impairment Losses under Expected Credit Loss Model](index=19&type=section&id=Net%20Reversal%20of%20Impairment%20Losses%20under%20Expected%20Credit%20Loss%20Model) Net reversal of impairment losses significantly increased by **1,483.75%** during the reporting period, primarily due to higher collection amounts compared to the prior period Changes in Net Reversal of Impairment Losses | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Reversal of Impairment Losses | 25.34 | 1.60 | 1,483.75% | - Primarily due to an increase in collection amounts compared to the prior period[45](index=45&type=chunk) [Income Tax Expense](index=19&type=section&id=Income%20Tax%20Expense_Financial%20Review) Income tax expense for the period was **RMB 51.37 million**, compared to an income tax benefit in the prior period, primarily due to increased profit before tax Changes in Income Tax Expense (Benefit) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Income Tax Expense (Benefit) | 51.37 (Expense) | (93.56) (Benefit) | - Primarily due to an increase in **profit before tax**[46](index=46&type=chunk) [Cash Flow Analysis](index=20&type=section&id=Cash%20Flow%20Analysis) Net cash from operating activities significantly increased during the reporting period, while net cash used in investing and financing activities also increased, reflecting the impact of revenue growth, increased accounts receivable collection, asset purchases, and no new borrowings [Net Cash Generated from Operating Activities](index=20&type=section&id=Net%20Cash%20Generated%20from%20Operating%20Activities) Net cash generated from operating activities increased by **28.43%** year-on-year during the reporting period, primarily due to increased revenue and higher collection of opening trade receivables Changes in Net Cash Generated from Operating Activities | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 4,325.28 | 3,367.72 | 28.43% | - Primarily due to increased revenue and higher collection of opening trade receivables[47](index=47&type=chunk) [Net Cash Used in Investing Activities](index=20&type=section&id=Net%20Cash%20Used%20in%20Investing%20Activities) Net cash used in investing activities increased by **109.28%** year-on-year during the reporting period, primarily due to increased payments for property, plant, and equipment and purchases of structured deposits Changes in Net Cash Used in Investing Activities | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Cash Used in Investing Activities | 5,020.38 | 2,398.91 | 109.28% | - Primarily due to increased payments for property, plant, and equipment and purchases of structured deposits[48](index=48&type=chunk) [Net Cash Used in Financing Activities](index=20&type=section&id=Net%20Cash%20Used%20in%20Financing%20Activities) Net cash used in financing activities increased by **19.62%** year-on-year during the reporting period, primarily due to no new borrowings raised in the current period Changes in Net Cash Used in Financing Activities | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Growth (%) | | :--- | :--- | :--- | | Net Cash Used in Financing Activities | 4,205.50 | 3,515.57 | 19.62% | - Primarily due to no new borrowings raised in the current period[49](index=49&type=chunk) [Liquidity and Sources of Working Capital](index=20&type=section&id=Liquidity%20and%20Sources%20of%20Working%20Capital) The Group's primary sources of liquidity are cash generated from operating activities and bank borrowings; as of June 30, 2025, current assets decreased, and the current ratio declined to approximately **1.11**, but the company is committed to maintaining optimal liquidity to meet operational needs - Primary sources of liquidity include cash generated from operating activities and bank borrowings[50](index=50&type=chunk) Liquidity Position | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Current Assets | 24,677.82 | 30,772.78 | Decrease | | Current Ratio | 1.11 | 1.33 | Decline | [Foreign Exchange Risk Management](index=21&type=section&id=Foreign%20Exchange%20Risk%20Management) The company manages foreign exchange risk by closely monitoring foreign currency exchange rate fluctuations and may employ hedging instruments such as derivatives; net foreign exchange gains of **RMB 167.97 million** were recorded during the reporting period - The company manages foreign exchange risk by closely monitoring foreign currency exchange rate fluctuations and may employ hedging instruments such as forward, option, and swap contracts[51](index=51&type=chunk) - Net foreign exchange gains of **RMB 167.97 million** were recorded during the reporting period[51](index=51&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no material contingent liabilities, guarantees, or pending litigations - As of **June 30, 2025**, there were no material contingent liabilities, guarantees, or any pending or threatened material litigation or claims against any member of the Group[52](index=52&type=chunk) [Capital Expenditure and Commitments](index=21&type=section&id=Capital%20Expenditure%20and%20Commitments) Capital expenditure for the period was approximately **RMB 4,297.12 million**, primarily for the purchase of property, plant, and equipment and land leases; as of June 30, 2025, total capital commitments were approximately **RMB 2,640.37 million** Capital Expenditure | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Capital Expenditure | 4,297.12 | 2,936.65 | Capital Commitments | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Capital Commitments | 2,640.37 | 2,217.42 | [Non-IFRS Measures](index=22&type=section&id=Non-IFRS%20Measures) The company uses adjusted profit for the period and adjusted net profit margin as non-IFRS measures to better compare operating performance across different periods; adjusted profit for H1 2025 was **RMB 1,224.2 million**, with an adjusted net profit margin of **3.7%** - The company uses adjusted profit for the period and adjusted net profit margin as non-IFRS measures to eliminate the impact of non-cash items such as share-based payments, aiding in the understanding and evaluation of interim financial information[55](index=55&type=chunk) Non-IFRS Measures | Indicator | January-June 2025 (RMB thousand) | January-June 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 1,194,275 | 880,945 | | Add: Share-based Payments | 29,967 | 94,412 | | **Adjusted Profit for the Period** | **1,224,242** | **975,357** | | **Adjusted Net Profit Margin** | **3.7%** | **3.4%** | [IV. Prospects and Outlook](index=23&type=section&id=IV.%20Prospects%20and%20Outlook) [Prospects and Outlook Overview](index=23&type=section&id=Prospects%20and%20Outlook_Overview) The company will seize AI-driven smart terminal upgrade opportunities, deepen precision manufacturing and material innovation, continuously expand business boundaries in smart devices, smart automotive, smart wearables, and other smart terminal sectors, and build diversified growth engines through global layout, vertical integration, and technological R&D - The company is seizing the opportunity of the AI-driven smart terminal upgrade wave, deeply empowering the edge-side model hardware ecosystem with precision manufacturing and material innovation[58](index=58&type=chunk) - In the future, the company will continue to deepen its global production capacity layout, accelerate overseas base construction leveraging its Hong Kong listing; strengthen its vertical integration advantages in materials, modules, and complete machines; and enrich its high-value-added product matrix[59](index=59&type=chunk) - R&D will focus on cutting-edge areas such as full-color optical waveguides, lightweight new metal materials, and core technologies for smart terminals[59](index=59&type=chunk) [1. Smart Devices Sector](index=23&type=section&id=1.%20Smart%20Devices%20Sector) Leveraging its deep technical expertise in foldable screen UTG and mass production capabilities, the company innovatively launched a multi-layer structural design to effectively eliminate creases, and is benefiting from the rapid increase in demand for new 3D glass - Leveraging deep technical expertise in foldable screen UTG and mass production capabilities, the company innovatively launched a multi-layer structural design for foldable screens, effectively eliminating creases and enhancing screen flatness[58](index=58&type=chunk) - Demand for new 3D glass is rapidly increasing, with high growth expected in the coming years, and the company will continue to benefit from the incremental opportunities brought by this round of technological innovation[58](index=58&type=chunk) [2. Smart Cockpit Sector](index=23&type=section&id=2.%20Smart%20Cockpit%20Sector) The company has established collaborations with over **30 leading domestic and international automotive enterprises**, expanding its automotive business boundaries, achieving new business breakthroughs in automotive communication modules and domain controllers, with ultra-thin laminated glass expected to bring significant incremental growth - Collaborations have been established with over **30 leading domestic and international automotive enterprises**, including major North American clients, expanding automotive business boundaries and achieving new business breakthroughs in automotive communication modules and domain controllers[58](index=58&type=chunk) - The developed automotive ultra-thin laminated glass features lightweight, sound insulation, heat insulation, HUD projection, and photochromic shading functions, which will continue to bring significant incremental growth to the company's automotive business[58](index=58&type=chunk) [3. Smart Wearables Sector](index=23&type=section&id=3.%20Smart%20Wearables%20Sector) As a complete machine assembly partner for renowned domestic clients, the company covers the entire production process from optical lenses and functional modules to complete machines, applying core technologies such as self-developed nanocrystalline glass, with future optical modules and optical waveguide lenses expected to be gradually introduced and achieve volume production - As a complete machine assembly partner for renowned domestic clients, the company covers the entire production process from optical lenses and functional modules to complete machines[58](index=58&type=chunk) - Applying core technologies such as self-developed nanocrystalline glass, product performance and lightweighting levels are significantly enhanced[58](index=58&type=chunk) - It is expected that the gradual introduction and volume production of the company's optical-related modules and optical waveguide lenses will effectively address industry bottlenecks in the future[58](index=58&type=chunk) [4. Other Smart Terminals Sector](index=24&type=section&id=4.%20Other%20Smart%20Terminals%20Sector) The company is collaborating with clients to establish an embodied AI innovation center, aiming to build China's largest core manufacturing platform for embodied AI hardware, and continuously expanding into the smart retail payment terminal market to strengthen diversified growth contributions - Collaborating with clients to establish an embodied AI innovation center, focusing on core R&D for data acquisition and secondary development, key modules such as joint motors, and iterative motion control algorithms[59](index=59&type=chunk) - The goal is to build China's largest highly vertically integrated core manufacturing platform for embodied AI hardware[59](index=59&type=chunk) - Continuously expanding into the smart retail payment terminal market, strengthening diversified growth contributions[59](index=59&type=chunk) [Other Important Information](index=24&type=section&id=Other%20Important%20Information) [Material Investments and Material Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=24&type=section&id=Material%20Investments%20and%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%2C%20and%20Joint%20Ventures) As of the date of this announcement, the company has no other material future plans for investments and capital assets beyond those disclosed in the prospectus and this announcement, nor were there any material acquisitions or disposals of subsidiaries, associates, and joint ventures during the reporting period - As of the date of this announcement, the company has no other material future plans regarding material investments and capital assets[60](index=60&type=chunk) - During the reporting period, the company had no material investments and/or material acquisitions or disposals of subsidiaries, associates, and joint ventures[61](index=61&type=chunk) [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The company is committed to maintaining high standards of corporate governance, having adopted the Corporate Governance Code in Appendix C1 of the Hong Kong Listing Rules; while the H-shares were not listed during the reporting period and the code was not applicable, it has been complied with since the listing date, with two deviations: the roles of Chairman and Chief Executive Officer are not segregated, and management reports business progress quarterly - The company has adopted all applicable code provisions of the **Corporate Governance Code** as set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[62](index=62&type=chunk) - Since the H-share listing date (**July 9, 2025**), the company has complied with all applicable code provisions in Part 2 of the Corporate Governance Code, with two deviations: the roles of Chairman and Chief Executive Officer are not segregated, and management reports business progress quarterly[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) [Standard Code for Securities Transactions by Directors](index=25&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Standard Code in Appendix C3 of the Listing Rules; while the H-shares were not listed during the reporting period and the code was not applicable, all Directors and Supervisors have confirmed compliance with the Standard Code's provisions since the listing date - The company has adopted the **Standard Code** as set out in Appendix C3 of the Listing Rules as the code of conduct for securities transactions by Directors and Supervisors[66](index=66&type=chunk) - Since the H-share listing date, each Director and Supervisor has confirmed compliance with the standards set out in the Standard Code[67](index=67&type=chunk) [Significant Events After the Reporting Period](index=26&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period_Other) Except for the H-share listing and share issuance disclosed in Note 17 to the condensed consolidated financial statements, there were no other significant events affecting the Group from the end of the reporting period to the date of this announcement - Save as disclosed in Note 17 to the condensed consolidated financial statements, there were no other significant events affecting the Group from the end of the reporting period to the date of this announcement[68](index=68&type=chunk) [Use of Proceeds from Global Offering](index=26&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company's H-share global offering has successfully listed, with net proceeds after expenses of approximately **HKD 5,404.52 million** (equivalent to approximately **RMB 4,924.27 million**), which will be used as stated in the prospectus, with no changes to the proposed use currently - Net proceeds from the company's H-share global offering amounted to approximately **HKD 5,404.52 million** (equivalent to approximately **RMB 4,924.27 million**)[69](index=69&type=chunk) - The net proceeds will be used as stated in the prospectus, with no changes to the proposed use currently[69](index=69&type=chunk)[70](index=70&type=chunk) [2025 Interim Dividend](index=26&type=section&id=2025%20Interim%20Dividend) The Board approved the 2025 interim profit distribution plan, proposing a cash dividend of **RMB 1.00 per 10 shares** (tax inclusive), totaling an estimated **RMB 526,022,760.40**, representing **46.03%** of H1 net profit; H-share dividends will be paid in HKD at a specific exchange rate, with detailed tax relief and withholding arrangements for A-share and H-share shareholders - The Board approved the 2025 interim profit distribution plan: a cash dividend of **RMB 1.00 per 10 shares** (tax inclusive)[73](index=73&type=chunk) 2025 Interim Dividend Distribution Details | Indicator | Amount | | :--- | :--- | | H1 2025 Net Profit Attributable to Owners of the Parent | RMB 1,142,689,297.22 | | Actual Distributable Profits to Shareholders | RMB 14,464,160,992.29 | | Estimated Total Cash Dividend | RMB 526,022,760.40 | | Percentage of H1 2025 Unaudited Net Profit | 46.03% | - H-share dividends will be calculated based on the average benchmark exchange rate of RMB to HKD published by the People's Bank of China for the five working days preceding the Board meeting (**RMB 0.91274 to HKD 1.00**), resulting in an interim dividend of **HKD 1.0956 per 10 H-shares** (tax inclusive)[74](index=74&type=chunk) [I. Distributable Profits](index=26&type=section&id=I.%20Distributable%20Profits) The company achieved a net profit attributable to shareholders of **RMB 1,142,689,297.22** in H1 2025, with actual distributable profits to shareholders totaling **RMB 14,464,160,992.29** as of June 30, 2025 - The company achieved a net profit attributable to shareholders of **RMB 1,142,689,297.22** in H1 2025[71](index=71&type=chunk) - As of **June 30, 2025**, the company's actual distributable profits to shareholders amounted to **RMB 14,464,160,992.29**[72](index=72&type=chunk) [II. Distribution Plan](index=27&type=section&id=II.%20Distribution%20Plan) The company's 2025 interim profit distribution plan proposes a cash dividend of **RMB 1.00 per 10 shares** (tax inclusive) to all shareholders, with an estimated total cash dividend of **RMB 526,022,760.40**, representing **46.03%** of H1 net profit - The company's 2025 interim profit distribution plan proposes a cash dividend of **RMB 1.00 per 10 shares** (tax inclusive) to all shareholders[73](index=73&type=chunk) - The estimated total cash dividend is **RMB 526,022,760.40**, representing **46.03%** of the company's unaudited net profit for H1 2025[73](index=73&type=chunk) - The H-share interim dividend is **HKD 1.0956 per 10 shares** (tax inclusive), calculated at an average benchmark exchange rate of **RMB 0.91274 to HKD 1.00**[74](index=74&type=chunk) [III. Suspension of H-share Transfer Registration for 2025 Interim Dividend Distribution](index=28&type=section&id=III.%20Suspension%20of%20H-share%20Transfer%20Registration%20for%202025%20Interim%20Dividend%20Distribution) To determine eligibility for the 2025 interim dividend, H-share transfer registration will be suspended from **September 18 to September 23, 2025**, with the record date being **September 23, 2025** - To determine eligibility for the 2025 interim dividend, H-share transfer registration will be suspended from **September 18 to September 23, 2025**[75](index=75&type=chunk) - The record date is **September 23, 2025**, and H-share shareholders must complete transfer registration by **4:30 p.m. on September 17, 2025**[75](index=75&type=chunk) [IV. Tax Relief](index=28&type=section&id=IV.%20Tax%20Relief) This section details dividend tax relief and withholding arrangements for overseas non-resident enterprise and individual H-share shareholders, Shenzhen-Hong Kong Stock Connect investors, and Shanghai-Hong Kong Stock Connect H-share investors - For overseas non-resident enterprise H-share shareholders, the company is required to withhold and pay enterprise income tax at a **10% rate**[76](index=76&type=chunk) - For overseas individual H-share shareholders, the company will withhold and pay individual income tax at a **10% rate**, and provide assistance for tax refund applications based on tax treaties[77](index=77&type=chunk) - Dividends for Shenzhen-Hong Kong Stock Connect investors are subject to a **10% income tax withholding** by the company, with eligible investors under tax treaties able to apply for tax refunds[79](index=79&type=chunk)[80](index=80&type=chunk) - Dividends for Shanghai-Hong Kong Stock Connect H-share investors are distributed in RMB, with mainland individual investors and securities investment funds subject to a **20% individual income tax withholding**, while mainland enterprise investors declare and pay taxes themselves[81](index=81&type=chunk) [Purchases, Sales or Redemptions of the Company's Listed Securities](index=31&type=section&id=Purchases%2C%20Sales%20or%20Redemptions%20of%20the%20Company's%20Listed%20Securities) During the reporting period, the company cumulatively repurchased **322,600 A-shares** through centralized bidding, totaling **RMB 7,267,695**, for employee stock ownership or equity incentive plans, and concurrently repurchased and cancelled **107,100 restricted A-shares** from **45 incentive recipients** - The company cumulatively repurchased **322,600 A-shares** through centralized bidding, representing **0.006474%** of the total A-share capital, with a total payment of **RMB 7,267,695**, for employee stock ownership or equity incentive plans[83](index=83&type=chunk) - The company repurchased and cancelled a total of **107,100 restricted A-shares** of the first category, which were granted but not yet vested, from **45 incentive recipients** who no longer met the incentive qualifications[84](index=84&type=chunk) [Publication of 2025 Interim Results and H-share Interim Report](index=32&type=section&id=Publication%20of%202025%20Interim%20Results%20and%20H-share%20Interim%20Report) The 2025 interim results announcement has been published on the HKEXnews website and the company's website, and the H-share interim report will be displayed on these websites and dispatched to shareholders who have requested printed copies in due course - The 2025 interim results announcement has been published on the **HKEXnews website (www.hkexnews.hk)** and the **company's website (www.hnlens.com)**[85](index=85&type=chunk) - The H-share interim report will be displayed on the aforementioned websites in due course and dispatched to shareholders who have requested printed copies[85](index=85&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 佈 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 佈 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 WEST CHINA CEMENT LIMITED 中國西部水泥有限公司 （於澤西註冊成立的有限公司，註冊編號94796） （股份代號：2233） 二 零 二 五 年 中 期 業 績 公 佈 財 務 摘 要 | | | | | | | | | | | | | | | | | | 截 | 至 | | | | | 截 至 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | - ...

[Performance Highlights](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) This section summarizes key financial performance indicators for the six months ended June 30, 2025 As of June 30, 2025, Six-Month Performance Highlights | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 138,353 | 98,461 | 40.52% | | Gross Profit | 19,211 | 15,796 | 21.62% | | Gross Profit Margin | 13.9% | 16.0% | –2.1 percentage points | | Loss attributable to equity holders | (5,986) | (3,676) | 62.84% | | Loss per share (RMB cents) | (0.30) | (0.18) | 66.67% | [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) This statement presents the detailed breakdown of revenues, costs, and expenses leading to the loss for the period For the Six Months Ended June 30, 2025, Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 138,353 | 98,461 | | Cost of Sales | (119,142) | (82,665) | | Gross Profit | 19,211 | 15,796 | | Other Income | 2,065 | 1,046 | | Selling Expenses | (4,508) | (1,697) | | Administrative Expenses | (18,653) | (15,193) | | Reversal/(Provision) for impairment of trade and other receivables | 83 | (1,561) | | Operating Loss | (1,802) | (1,609) | | Finance Costs | (4,709) | (3,366) | | Loss Before Tax | (6,511) | (4,975) | | Income Tax | 525 | 1,299 | | Loss for the period attributable to equity holders of the Company | (5,986) | (3,676) | | Basic and diluted loss per share (RMB cents) | (0.30) | (0.18) | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement shows the loss for the period and other comprehensive income items, leading to total comprehensive income For the Six Months Ended June 30, 2025, Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period | (5,986) | (3,676) | | Exchange differences on translation to the Group's presentation currency | (200) | 68 | | Total comprehensive income for the period attributable to equity holders of the Company | (6,186) | (3,608) | [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement provides a snapshot of the company's assets, liabilities, and equity at specific reporting dates As of June 30, 2025, Consolidated Statement of Financial Position | Indicator | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 196,590 | 201,351 | | Current Assets | 398,489 | 422,211 | | Current Liabilities | 318,219 | 337,942 | | Net Current Assets | 80,270 | 84,269 | | Non-current Liabilities | 35,448 | 38,022 | | Net Assets | 241,412 | 247,598 | | Total Equity | 241,412 | 247,598 | [Notes to the Unaudited Interim Financial Report](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E9%99%84%E8%A8%BB) This section provides detailed notes on company information, financial report preparation, accounting policy changes, revenue, segment reporting, income, loss before tax, income tax, loss per share, receivables, payables, and dividends [1 Company Information](index=6&type=section&id=1%20Company%20Information) China Tianrui Automotive Interior Parts Co., Ltd., incorporated in the Cayman Islands in 2017 and listed in Hong Kong in 2019, specializes in manufacturing and selling automotive decorative parts - The company was incorporated as an exempted company in the Cayman Islands on **April 27, 2017**[8](index=8&type=chunk) - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **January 15, 2019**[8](index=8&type=chunk) - The Group is principally engaged in the manufacture and sale of automotive interior and exterior decorative parts[8](index=8&type=chunk) [2 Basis of Preparation](index=6&type=section&id=2%20Basis%20of%20Preparation) This interim financial report is prepared under Listing Rules and IAS 34, using 2024 annual accounting policies and management's judgments and estimates - This interim financial report has been prepared in accordance with the applicable disclosure provisions of the Listing Rules of the Stock Exchange and International Accounting Standard 34[9](index=9&type=chunk) - The interim financial report has been prepared on the same accounting policies adopted in the 2024 annual financial statements, except for the changes in accounting policies expected to be reflected in the 2025 annual financial statements[9](index=9&type=chunk) - The preparation of an interim financial report in conformity with IAS 34 requires management to make judgments, estimates, and assumptions[9](index=9&type=chunk) [3 Changes in Accounting Policies](index=7&type=section&id=3%20Changes%20in%20Accounting%20Policies) Modifications to IFRS 21 were applied, but had no significant impact due to the Group's lack of foreign currency transactions or non-convertibility issues, and no other new standards were adopted - The Group has applied the amendments to **IFRS 21 — The Effects of Changes in Foreign Exchange Rates — Non-exchangeability** issued by the International Accounting Standards Board to the current accounting period of this interim financial report[11](index=11&type=chunk) - These amendments have **no significant impact** on this interim report as the Group has not entered into any foreign currency transactions where the foreign currency cannot be exchanged into another currency[11](index=11&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[12](index=12&type=chunk) [4 Revenue and Segment Reporting](index=7&type=section&id=4%20Revenue%20and%20Segment%20Reporting) The Group manufactures and sells automotive decorative parts, managing two segments: heavy-duty truck and passenger vehicle, with revenue primarily from China, categorized by product and recognition timing [4 (a) Revenue](index=7&type=section&id=4%20(a)%20Revenue) Total revenue for the six months ended June 30, 2025, was **RMB 138,353 thousand**, primarily from heavy-duty truck and passenger vehicle decorative parts sales Revenue from contracts with customers by major products | Major Products | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of heavy-duty truck interior and exterior decorative parts | 98,731 | 90,942 | | Sales of passenger vehicle interior and exterior decorative parts and related molds | 39,622 | 7,519 | | **Total** | **138,353** | **98,461** | - Customer B contributed **RMB 60,931 thousand** in revenue in the first half of 2025, making it the Group's largest customer[15](index=15&type=chunk) [4 (b) Segment Reporting](index=8&type=section&id=4%20(b)%20Segment%20Reporting) The Group's two segments, heavy-duty truck and passenger vehicle decorative parts, are evaluated by gross profit, which was **RMB 15,243 thousand** and **RMB 3,969 thousand** respectively as of June 30, 2025 - The Group manages its business by product categories, divided into two reportable segments: **heavy-duty truck interior and exterior decorative parts** and **passenger vehicle interior and exterior decorative parts**[16](index=16&type=chunk)[18](index=18&type=chunk) - The performance of the reportable segments is measured by gross profit, with no inter-segment sales occurring[17](index=17&type=chunk) Gross profit from reportable segments | Segment | 2025 Gross Profit (RMB thousands) | 2024 Gross Profit (RMB thousands) | | :--- | :--- | :--- | | Heavy-duty truck interior and exterior decorative parts | 15,243 | 15,714 | | Passenger vehicle interior and exterior decorative parts and related molds | 3,969 | 82 | | **Total reportable segment gross profit** | **19,211** | **15,796** | [5 Other Income](index=10&type=section&id=5%20Other%20Income) Other income for the six months ended June 30, 2025, grew **110.8%** to **RMB 2,065 thousand**, driven mainly by increased government grants Details of Other Income | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants (including amortization of deferred income) | 1,639 | 535 | | Net gain on disposal of scrap materials | – | 403 | | Net foreign exchange gain | 143 | – | | Interest income | 283 | 108 | | **Total** | **2,065** | **1,046** | - Government grants increased from **RMB 535 thousand** in 2024 to **RMB 1,639 thousand** in 2025, which is the primary reason for the growth in other income[22](index=22&type=chunk) [6 Loss Before Tax](index=11&type=section&id=6%20Loss%20Before%20Tax) Loss before tax for the six months ended June 30, 2025, was **RMB 6,511 thousand**, mainly due to higher finance, R&D, and inventory costs [6 (a) Finance Costs](index=11&type=section&id=6%20(a)%20Finance%20Costs) Finance costs for the six months ended June 30, 2025, rose **39.9%** to **RMB 4,709 thousand**, driven by increased interest on bank and other borrowings Details of Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on bank and other borrowings | 4,644 | 3,289 | | Interest expense on lease liabilities | 65 | 77 | | **Total** | **4,709** | **3,366** | [6 (b) Other Items](index=11&type=section&id=6%20(b)%20Other%20Items) Depreciation and amortization slightly decreased, but R&D and inventory costs significantly increased for the six months ended June 30, 2025, impacting loss before tax Details of Other Items | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation and amortization | 15,097 | 16,232 | | Research and development costs | 7,311 | 3,328 | | Cost of inventories | 119,142 | 82,665 | - Research and development costs significantly increased from **RMB 3,328 thousand** in 2024 to **RMB 7,311 thousand** in 2025[24](index=24&type=chunk) [7 Income Tax](index=11&type=section&id=7%20Income%20Tax) Income tax credit for the six months ended June 30, 2025, decreased to **RMB 525 thousand** due to reconciliation adjustments and temporary differences, with Chinese subsidiaries benefiting from tax incentives Details of Income Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax (provision for the period) | (146) | – | | Current tax (differences from annual reconciliation) | 707 | – | | Deferred tax (origination and reversal of temporary differences) | (36) | 1,299 | | **Total** | **525** | **1,299** | - Xi'an Tianrui Automotive Interior Parts Co., Ltd. enjoys a **15% preferential income tax rate** as a high-tech enterprise from 2022 to 2025[26](index=26&type=chunk) - Baoji Ruitong Automotive Interior Co., Ltd. benefits from a **15% preferential China enterprise income tax rate** under the Western Development Plan from 2021 to 2030[26](index=26&type=chunk) [8 Loss Per Share](index=13&type=section&id=8%20Loss%20Per%20Share) Basic and diluted loss per share for the six months ended June 30, 2025, expanded to **RMB 0.30 cents**, driven by increased loss attributable to equity holders [8 (a) Basic Loss Per Share](index=13&type=section&id=8%20(a)%20Basic%20Loss%20Per%20Share) Basic loss per share for the six months ended June 30, 2025, was **RMB 0.30 cents**, based on a **RMB 5,986 thousand** loss and **2,000,000,000** shares Calculation of Basic Loss Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to equity holders (RMB thousands) | 5,986 | 3,676 | | Weighted average number of ordinary shares in issue (shares) | 2,000,000,000 | 2,000,000,000 | | Basic loss per share (RMB cents) | (0.30) | (0.18) | [8 (b) Diluted Loss Per Share](index=13&type=section&id=8%20(b)%20Diluted%20Loss%20Per%20Share) No potential dilutive shares existed for the six months ended June 30, 2025 and 2024, resulting in diluted loss per share equaling basic loss per share - There were no potential dilutive shares for the six months ended **June 30, 2025 and 2024**[28](index=28&type=chunk) [9 Trade and Bills Receivables](index=13&type=section&id=9%20Trade%20and%20Bills%20Receivables) Total trade and bills receivables increased to **RMB 222,681 thousand** as of June 30, 2025, with the largest portion due within three months Trade and Bills Receivables | Item | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 202,134 | 190,842 | | Bills receivables | 20,547 | 14,048 | | **Total** | **222,681** | **204,890** | Ageing analysis of trade and bills receivables | Ageing | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 102,521 | 99,747 | | 3 to 6 months | 69,907 | 49,081 | | 6 to 12 months | 50,253 | 56,062 | | **Total** | **222,681** | **204,890** | [10 Trade and Bills Payables](index=14&type=section&id=10%20Trade%20and%20Bills%20Payables) Total trade and bills payables slightly increased to **RMB 132,117 thousand** as of June 30, 2025, driven by higher trade payables despite fewer bills payables Trade and Bills Payables | Item | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 132,117 | 97,314 | | Bills payables | – | 33,823 | | **Total** | **132,117** | **131,137** | Ageing analysis of trade and bills payables | Ageing | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 72,747 | 72,966 | | 3 to 6 months | 31,575 | 29,663 | | 6 to 12 months | 20,423 | 15,322 | | Over 1 year | 7,372 | 13,186 | | **Total** | **132,117** | **131,137** | [11 Dividends](index=14&type=section&id=11%20Dividends) No interim dividends were paid or proposed for the six months ended June 30, 2025 - No dividends were paid or proposed for the six months ended **June 30, 2025**[32](index=32&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) Management reviews H1 2025 automotive industry trends, company performance, financial changes, liquidity, capital structure, risk management, and future strategies, highlighting significant passenger vehicle growth [Industry Overview](index=15&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A7%88) H1 2025 saw overall automotive industry growth, with slight heavy-duty truck and steady passenger vehicle market increases, but heightened competition and slower consumption created operational pressure - In the first half of 2025, the automotive industry showed an overall growth trend, with a slight increase in heavy-duty truck sales and steady growth in passenger vehicle sales[33](index=33&type=chunk) - Intensified industry competition and slowing domestic consumption growth led to significant operational pressure for enterprises[33](index=33&type=chunk) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) As Northwest China's largest heavy-duty truck interior parts manufacturer, the company achieved significant H1 2025 revenue growth, primarily from explosive passenger vehicle decorative parts sales - The Group has developed into the **largest heavy-duty truck interior decorative parts manufacturer in Northwest China**, holding a leading market position[34](index=34&type=chunk) Revenue by product category | Product Category | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Heavy-duty truck interior and exterior decorative parts | 98,731 | 71.4 | 90,942 | 92.4 | | Passenger vehicle interior and exterior decorative parts and related molds | 39,622 | 28.6 | 7,519 | 7.6 | | **Total** | **138,353** | **100.0** | **98,461** | **100.0** | [Revenue from Sales of Heavy-Duty Truck Interior and Exterior Decorative Parts](index=15&type=section&id=%E8%87%AA%E9%87%8D%E5%9E%8B%E5%8D%A1%E8%BB%8A%E8%A3%9D%E9%A3%BE%E9%9B%B6%E9%83%A8%E4%BB%B6%E9%8A%B7%E5%94%AE%E7%94%A2%E7%94%9F%E4%B9%8B%E6%94%B6%E5%85%A5) Heavy-duty truck decorative parts sales revenue grew **8.6%** to **RMB 98.7 million** for the six months ended June 30, 2025, driven by increased market sales volume Heavy-duty truck interior and exterior decorative parts sales revenue | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 98.7 | 90.9 | 8.6% | - The revenue growth was primarily due to an increase in sales volume in the heavy-duty truck market[35](index=35&type=chunk) [Revenue from Sales of Passenger Vehicle Interior and Exterior Decorative Parts and Related Molds](index=16&type=section&id=%E8%87%AA%E4%B9%97%E7%94%A8%E8%BB%8A%E8%A3%9D%E9%A3%BE%E9%9B%B6%E9%83%A8%E4%BB%B6%E5%8F%8A%E7%9B%B8%E9%97%9C%E6%A8%A1%E5%85%B7%E9%8A%B7%E5%94%AE%E7%94%A2%E7%94%9F%E4%B9%8B%E6%94%B6%E5%85%A5) Passenger vehicle decorative parts and molds sales revenue surged **428.0%** to **RMB 39.6 million** for the six months ended June 30, 2025, driven by new product mass production Passenger vehicle interior and exterior decorative parts and related molds sales revenue | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 39.6 | 7.5 | 428.0% | - The increase in revenue was primarily due to the mass production of newly developed products during the period[36](index=36&type=chunk) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) H1 2025 revenue grew **40.5%**, but gross margin declined due to higher labor costs and lower product prices, while increased operating and finance costs expanded the period's loss [Revenue](index=16&type=section&id=%E6%94%B6%E5%85%A5) Revenue for the six months ended June 30, 2025, increased **40.5%** to **RMB 138.4 million**, primarily driven by mass production of passenger vehicle components Total Revenue | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 138.4 | 98.5 | 40.5% | - The revenue growth was primarily due to the mass production of passenger vehicle business components[37](index=37&type=chunk) [Gross Profit and Gross Profit Margin](index=16&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased **21.5%** to **RMB 19.2 million**, but gross profit margin declined **2.1 percentage points** to **13.9%** due to higher labor costs and lower product prices Gross Profit and Gross Profit Margin | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit (RMB millions) | 19.2 | 15.8 | 21.5% | | Gross Profit Margin | 13.9% | 16.0% | -2.1 percentage points | - The decrease in gross profit margin was primarily due to increased labor costs and decreased prices for some products[38](index=38&type=chunk) [Other Income](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for the six months ended June 30, 2025, increased **110.0%** to **RMB 2.1 million** Other Income | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Other Income | 2.1 | 1.0 | 110.0% | [Selling and Distribution Expenses](index=16&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses for the six months ended June 30, 2025, surged **164.7%** to **RMB 4.5 million**, driven by increased sales staff, wages, and marketing costs Selling and Distribution Expenses | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 4.5 | 1.7 | 164.7% | - The increase was primarily due to an increase in the number of sales personnel, higher wages for sales personnel, and increased product marketing expenses[40](index=40&type=chunk) [Administrative Expenses](index=16&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses for the six months ended June 30, 2025, increased **23.0%** to **RMB 18.7 million**, primarily due to higher research and development costs Administrative Expenses | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 18.7 | 15.2 | 23.0% | - The increase was primarily due to increased research and development expenses[41](index=41&type=chunk) [Finance Costs](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for the six months ended June 30, 2025, increased **38.2%** to **RMB 4.7 million**, primarily due to higher bank and other borrowings Finance Costs | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | 4.7 | 3.4 | 38.2% | - The increase was primarily due to an increase in bank and other borrowings[42](index=42&type=chunk) [Income Tax Expense](index=17&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax credit for the six months ended June 30, 2025, decreased to approximately **RMB 0.5 million**, mainly due to annual income tax reconciliation adjustments Income Tax Credit | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Income Tax Credit | 0.5 | 1.3 | - The income tax credit was primarily due to adjustments for annual income tax reconciliation differences during the period[43](index=43&type=chunk) [Loss for the Period](index=17&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) Loss for the six months ended June 30, 2025, expanded to **RMB 6.0 million**, primarily due to costs and expenses increasing faster than revenue Loss for the Period | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Loss for the Period | 6.0 | 3.7 | [Liquidity, Financial Resources and Capital Structure](index=17&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) Business operations are funded by cash and bank borrowings; as of June 30, 2025, cash decreased, borrowings slightly increased, and the gearing ratio rose to **68.8%** - The Group's business operations are primarily funded by cash generated from operating activities and bank and other borrowings[45](index=45&type=chunk) Cash and Cash Equivalents | Indicator | 2025 June 30 (RMB millions) | 2024 December 31 (RMB millions) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 83.6 | 95.5 | [Bank and Other Borrowings](index=17&type=section&id=%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B2%B8%E6%AC%BE) Total bank and other borrowings increased to **RMB 166.1 million** as of June 30, 2025, largely guaranteed by third parties or the ultimate controlling party, and partly by receivables, fixed assets, and bank deposits Bank and Other Borrowings | Indicator | 2025 June 30 (RMB millions) | 2024 December 31 (RMB millions) | | :--- | :--- | :--- | | Total bank and other borrowings | 166.1 | 163.7 | - Approximately **RMB 125.4 million** of the borrowings were guaranteed by third parties or the ultimate controlling party of the Company or its subsidiaries[46](index=46&type=chunk) - Approximately **RMB 36.9 million** of bank and other borrowings were secured by trade and bills receivables, property, plant and equipment, and bank deposits[46](index=46&type=chunk) [Gearing Ratio](index=17&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The gearing ratio increased to **68.8%** as of June 30, 2025, from **66.1%** on December 31, 2024, reflecting higher debt relative to equity Gearing Ratio | Indicator | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Gearing Ratio | 68.8% | 66.1% | [Pledged Assets](index=18&type=section&id=%E5%B7%B2%E6%8A%B5%E6%8A%BC%E8%B3%87%E7%94%A2) Total pledged assets significantly decreased to **RMB 41,424 thousand** as of June 30, 2025, mainly due to lower pledged property, plant, equipment, and receivables Pledged Assets | Item | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Property, Plant and Equipment | 22,255 | 85,071 | | Trade and Bills Receivables | 8,041 | 14,096 | | Bank deposits | 11,128 | 10,880 | | **Total** | **41,424** | **110,047** | [Capital Expenditure](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure for the six months ended June 30, 2025, was approximately **RMB 7.13 million**, mainly for new plant and equipment, a decrease from the prior period Capital Expenditure | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Capital Expenditure | 7.13 | 9.41 | - Capital expenditure was primarily related to the construction of new plants and the acquisition of new machinery and equipment[49](index=49&type=chunk) [Capital Commitments](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) Capital commitments for property, plant, and equipment increased to **RMB 35.8 million** as of June 30, 2025 Capital Commitments | Indicator | 2025 June 30 (RMB millions) | 2024 December 31 (RMB millions) | | :--- | :--- | :--- | | Commitments for property, plant and equipment | 35.8 | 25.5 | [Contingent Liabilities](index=18&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of **June 30, 2025**, the Group had no significant contingent liabilities[51](index=51&type=chunk) [RMB Exchange Rate Fluctuations and Foreign Exchange Risk](index=18&type=section&id=RMB%20Exchange%20Rate%20Fluctuations%20and%20Foreign%20Exchange%20Risk) With most business and all bank borrowings in RMB, the Group faces no significant foreign exchange risk, and the Board anticipates no material impact from exchange rate fluctuations - The vast majority of the Group's business and all bank borrowings are transacted and accounted for in RMB, thus posing **no significant foreign exchange fluctuation risk**[52](index=52&type=chunk) - The Board does not anticipate that RMB exchange rate fluctuations and other foreign currency exchange rate fluctuations will have a **material impact** on the Group's business or results of operations[52](index=52&type=chunk) [Material Investments Held, Material Acquisitions and Disposals](index=19&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no material investments, acquisitions, or disposals of subsidiaries or associates - For the six months ended **June 30, 2025**, the Group had no material investments held or material acquisitions and disposals of subsidiaries and associates[53](index=53&type=chunk) [Interim Dividends](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend any interim dividend payment for the six months ended June 30, 2025 - The Board of Directors of the Company does not recommend the payment of any interim dividend for the six months ended **June 30, 2025**[54](index=54&type=chunk) [Employees and Remuneration Policy](index=19&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, employee count increased to **396**, with higher staff costs; remuneration policy focuses on performance, qualifications, market levels, training, and competitive compensation Number of Employees and Staff Costs | Indicator | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Number of full-time employees | 396 | 357 | | Total staff costs (RMB millions) | 27.59 | 18.7 | - The Group's remuneration policy rewards employees and executives based on their performance, qualifications, demonstrated abilities, and comparable market levels[55](index=55&type=chunk) - The Group places great emphasis on employee training and offers competitive remuneration packages to retain excellent employees[55](index=55&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=19&type=section&id=%E8%B3%BC%E5%85%A5%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities for the six months ended June 30, 2025, or up to the announcement date - For the six months ended **June 30, 2025**, and up to the date of this announcement, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[56](index=56&type=chunk) [Major Subsequent Events](index=19&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events affecting the Group occurred from June 30, 2025, up to the announcement date - There were no significant events affecting the Group from the end of the financial period ended **June 30, 2025**, up to the date of this announcement[57](index=57&type=chunk) [Future Outlook](index=20&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The automotive industry is expected to grow despite competition; the Group plans to enhance new product development, expand passenger vehicle clients, and broaden its product portfolio for core competitiveness - The automotive industry is expected to maintain a **continuous growth trend**, despite increasing competition[58](index=58&type=chunk) - The Group will continue to strengthen new product development with existing clients and actively expand into new passenger vehicle clients[58](index=58&type=chunk) - The company will continuously expand its product portfolio to enhance its core competitiveness[58](index=58&type=chunk) [Corporate Governance](index=20&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company maintains high corporate governance, complying with the code despite a combined Chairman and CEO role; the Board and senior management adhere to securities transaction standards, and the Audit Committee reviewed interim results [Compliance with Corporate Governance Code](index=20&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complies with the Corporate Governance Code, with the Chairman and CEO roles combined by Mr. Hou Jianli, an arrangement the Board believes aids strategic planning and decision execution under continuous director oversight - The Company has complied with all code provisions of the Corporate Governance Code for the six months ended **June 30, 2025**, except for the combined roles of Chairman and Chief Executive Officer[59](index=59&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer ensures consistency in the Group's leadership and allows for more effective overall strategic planning[59](index=59&type=chunk) - Other Board members and independent non-executive directors continuously monitor the Company's key decisions and oversee the powers of the Chairman and Chief Executive Officer[59](index=59&type=chunk) [Model Code for Securities Transactions](index=20&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Listing Rules' Model Code for Securities Transactions, with all directors and senior management confirming compliance during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in **Appendix C3 of the Listing Rules**[60](index=60&type=chunk) - All directors and senior management confirm their compliance with the relevant provisions of the Model Code during the six months ended **June 30, 2025**[60](index=60&type=chunk) [Audit Committee](index=20&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee reviewed the Group's accounting principles, policies, internal controls, financial reporting, and interim results for the six months ended June 30, 2025 - The Audit Committee has reviewed the accounting principles and policies adopted by the Group and discussed internal control and financial reporting matters[61](index=61&type=chunk) - The Audit Committee has reviewed the interim results for the six months ended **June 30, 2025**[61](index=61&type=chunk) [Publication of Information](index=21&type=section&id=%E5%88%8A%E7%99%BC%E4%BF%A1%E6%81%AF) This section outlines where the interim results announcement and report will be published - The interim results announcement will be published on the Stock Exchange's website (**www.hkexnews.hk**) and the Company's website (**www.trqcns.com**)[62](index=62&type=chunk) - The interim report for the six months ended **June 30, 2025**, containing all information required by the Listing Rules, will be dispatched to the Company's shareholders and published on the Stock Exchange's and the Company's websites in due course[62](index=62&type=chunk)

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The group's revenue increased by 7.6% to RMB 97.0 million, with gross profit up 6.2% to RMB 75.7 million, but net profit turned into a loss of RMB 125.5 million due to non-operating items Key Financial Data for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 96,973 | 90,113 | 7.6% | | Gross Profit | 75,684 | 71,283 | 6.2% | | Profit/(Loss) for the Period | (125,505) | 226 | -55,633.2% | | Adjusted Net Profit (Non-IFRS Measure) | 28,183 | 26,646 | 5.8% | - The Group's revenue increased by **7.6%** year-on-year to **RMB 97.0 million**, gross profit increased by **6.2%** to **RMB 75.7 million**, but gross margin decreased by **1 percentage point** to **78.1%**[5](index=5&type=chunk) - A net loss of **RMB 125.5 million** was recorded for the period, compared to a net profit of **RMB 0.2 million** in the same period last year, primarily due to non-operating items. Adjusted net profit (non-IFRS measure) increased by **5.8%** year-on-year to **RMB 28.2 million**[5](index=5&type=chunk) [Business Review and Outlook](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) The group maintained steady business growth in the first half of 2025, with increased revenue and adjusted net profit, while net profit turned to a loss due to non-operating factors [Business Review](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In the first half of 2025, the Group maintained steady business growth, with increases in revenue and adjusted net profit, but net profit turned to a loss due to non-operating factors - The Group's revenue for the first half was **RMB 97.0 million**, a year-on-year increase of **7.6%**[6](index=6&type=chunk) - Gross profit was **RMB 75.7 million**, a year-on-year increase of **6.2%**[6](index=6&type=chunk) - Net loss was **RMB 125.5 million**, compared to a net profit of **RMB 0.2 million** in the same period last year[6](index=6&type=chunk) - Adjusted net profit (non-IFRS measure) was **RMB 28.2 million**, a year-on-year increase of **5.8%**[6](index=6&type=chunk) [Business Growth](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%A2%9E%E9%95%B7) The Group's core public transportation information service business expanded significantly in coverage and user numbers, successfully initiating overseas market expansion and advancing its public transportation analytics platform with large language model technology [Public Transportation Information Services Business](index=2&type=section&id=%E5%85%AC%E4%BA%A4%E4%BF%A1%E6%81%AF%E6%9C%8D%E5%8B%99%E6%A5%AD%E5%8B%99) The core product "Che Lai Le" expanded its service coverage to 476 towns and increased cumulative users to 315.0 million, with average monthly active users growing to 30.2 million - The core product 'Che Lai Le' service coverage increased from **466** towns at the end of 2024 to **476** towns[7](index=7&type=chunk) - Cumulative users increased from **298.4 million** at the end of 2024 to **315.0 million**, a **5.6%** increase[7](index=7&type=chunk) - Average monthly active users grew to **30.2 million** from January to June 2025, a **5%** increase compared to the same period in 2024, and a **4%** increase compared to the 2024 full-year average[7](index=7&type=chunk) [Internationalization of Public Transportation Information Services](index=2&type=section&id=%E5%85%AC%E4%BA%A4%E4%BF%A1%E6%81%AF%E6%9C%8D%E5%8B%99%E7%9A%84%E5%9C%8B%E9%9A%9B%E5%8C%96) In the first half of 2025, the Group launched public transportation travel products in Hong Kong and Kuala Lumpur, establishing an initial presence in 5 overseas regions by August 2025 - Public transportation travel products were developed and launched in Hong Kong and Kuala Lumpur regions in the first half of 2025[8](index=8&type=chunk) - As of August 2025, international business has covered **5** overseas regions, forming an initial strategic layout[8](index=8&type=chunk) [Public Transportation Analytics Platform Business](index=3&type=section&id=%E5%85%AC%E4%BA%A4%E4%BF%A1%E6%81%AF%E5%88%86%E6%9E%90%E5%B9%B3%E5%8F%B0%E6%A5%AD%E5%8B%99) The public transportation analytics platform now covers 140 towns, providing data insights and smart decision-making support to transportation agencies, with its latest version integrating large language model technology for passenger flow analysis - The platform covers **140** towns nationwide, providing data insights and smart decision-making support for transportation agencies[9](index=9&type=chunk) - The latest version applies large language model technology to scenarios such as public transportation passenger flow analysis and has been deployed in pilot cities[9](index=9&type=chunk) [Revenue Breakdown](index=3&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E4%BD%88) The Group's revenue is primarily from mobile advertising services, driven by user base expansion and increased penetration, while data technology services revenue grew strongly due to the public transportation analytics platform and customized solutions [Mobile Advertising Services](index=3&type=section&id=%E7%A7%BB%E5%8B%95%E5%BB%A3%E5%91%8A%E6%9C%8D%E5%8B%99) Mobile advertising services revenue reached RMB 94.2 million, a 6.4% year-on-year increase, primarily driven by expanded bus route coverage and increased user penetration leading to higher ad impressions - As of June 30, 2025, mobile advertising services revenue was **RMB 94.2 million**, a year-on-year increase of **6.4%**[10](index=10&type=chunk) - Growth primarily stemmed from increased ad impressions due to expanded bus route coverage and enhanced user penetration[10](index=10&type=chunk) [Data Technology Services](index=3&type=section&id=%E6%95%B8%E6%93%9A%E6%8A%80%E8%A1%93%E6%9C%8D%E5%8B%99) Data technology services revenue reached RMB 2.8 million from January to June 2025, a 74.1% increase compared to the same period in 2024, driven by the public transportation analytics platform and customized data intelligence solutions - From January to June 2025, data technology services revenue was **RMB 2.8 million**, a **74.1%** increase compared to the same period in 2024[11](index=11&type=chunk) - Revenue sources include public transportation analytics platform usage by transportation agencies and other customized data intelligence technology solutions[11](index=11&type=chunk) [AI Technology Reserves](index=3&type=section&id=AI%E6%8A%80%E8%A1%93%E5%84%B2%E5%82%99) The Group continuously invests in AI R&D, collaborating with universities on deep neural network foundation models and multi-model fusion, applying latest research to online products to significantly enhance prediction accuracy - Collaborated with universities such as Peking University to establish joint research projects focusing on deep neural network foundation models for specific industries and dynamic fusion of multiple deep neural network large models[12](index=12&type=chunk) - Some innovative achievements have been published in top international conferences such as ICML2025 and IJCNN[12](index=12&type=chunk) - The new generation of deep neural network-based time series prediction service has been launched in the 'Che Lai Le' product, with a considerable improvement in prediction accuracy[13](index=13&type=chunk) [Future Outlook](index=4&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The Group anticipates steady growth in the domestic urban public transportation sector, integrating AI technology for product iteration, while targeting overseas markets through a "technology export + localized operation" model and continuously incubating new AI products [Domestic Market Size Expected to Continue Steady Growth](index=4&type=section&id=%E5%9C%8B%E5%85%A7%E5%B8%82%E5%A0%B4%E8%A6%8F%E6%A8%A1%E5%B0%87%E7%B9%BC%E7%BA%8C%E7%A9%A9%E6%AD%A5%E5%A2%9E%E9%95%B7) China's urban public transportation industry revenue is projected to exceed RMB 500 billion by 2025, with passenger volume reaching 120 billion, and the Group will leverage AI technology for product iteration to enhance competitiveness - China's urban public transportation industry revenue is projected to exceed **RMB 500 billion** by 2025, with an average annual compound growth rate of **4%–5%**[14](index=14&type=chunk) - Urban public bus and tram passenger volume is expected to reach **120 billion** person-times in 2025, a **2.5%** increase from 2024[14](index=14&type=chunk) - The Group will closely follow the latest advancements in AI technology, applying them to product feature iterations to enhance core competitiveness[14](index=14&type=chunk) [Overseas Markets as a Future Growth Driver](index=4&type=section&id=%E6%B5%B7%E5%A4%96%E5%B8%82%E5%A0%B4%E6%98%AF%E6%A5%AD%E5%8B%99%E5%BE%8C%E7%BA%8C%E7%99%BC%E5%8A%9B%E6%96%B9%E5%90%91) Preliminary research indicates clear demand and high potential willingness to pay for real-time public transportation information in overseas markets, where the Group plans to expand through a "technology export + localized operation" model - Preliminary research indicates clear demand for real-time public transportation information in overseas markets and a relatively high potential willingness to pay[15](index=15&type=chunk) - Plans to gradually expand overseas coverage and optimize product experience through a 'technology export + localized operation' model[15](index=15&type=chunk) [Continuous Investment in Incubating New AI Products](index=4&type=section&id=%E6%8C%81%E7%BA%8C%E6%8A%95%E5%85%A5%E5%AD%B5%E5%8C%96%E6%96%B0%E7%9A%84AI%E7%94%A2%E5%93%81) Rapid AI technology development presents new market opportunities in data intelligence, and the Group will continuously invest in new product incubation as a strategic goal to create more value - Rapid development of AI technology brings new market opportunities in the data intelligence field[16](index=16&type=chunk) - The Group will continuously invest in new product incubation as a strategic goal to create more value[16](index=16&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E8%A1%A8) The interim condensed consolidated statement of profit or loss shows a significant shift from profit to a substantial loss for the period, primarily driven by a large fair value loss on financial liabilities Interim Condensed Consolidated Statement of Profit or Loss for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 96,973 | 90,113 | | Cost of Sales | (21,289) | (18,830) | | Gross Profit | 75,684 | 71,283 | | Other Income and Gains | 2,223 | 2,518 | | Selling and Distribution Expenses | (18,649) | (16,687) | | Administrative Expenses | (37,976) | (27,025) | | Research and Development Expenses | (21,633) | (18,580) | | Net Impairment Loss/(Reversal of Impairment Loss) on Financial Assets | 712 | (83) | | Fair Value Loss on Financial Liabilities at Fair Value Through Profit or Loss | (119,202) | (8,006) | | Other Expenses and Losses | (4,246) | (185) | | Finance Costs | (478) | (692) | | Profit/(Loss) Before Tax | (123,565) | 2,543 | | Income Tax Expense | (1,940) | (2,317) | | Profit/(Loss) for the Period | (125,505) | 226 | | Basic Earnings/(Loss) Per Share (RMB) | (1.69) | 0.00 | | Diluted Earnings/(Loss) Per Share (RMB) | (1.69) | 0.00 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) The interim condensed consolidated statement of comprehensive income reveals a substantial increase in total comprehensive loss for the period, primarily due to the shift from profit to loss and higher net other comprehensive loss Interim Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | (125,505) | 226 | | Net Other Comprehensive Loss | (6,246) | (1,957) | | Total Comprehensive Loss for the Period | (132,303) | (2,532) | - In the first half of 2025, the Group recorded a total comprehensive loss for the period of **RMB 132.3 million**, a significant increase from the **RMB 2.5 million** loss in the same period last year, mainly due to the profit turning into a loss for the period and an increase in net other comprehensive loss[18](index=18&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=7&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) The interim condensed consolidated statement of financial position shows a significant improvement in the Group's financial health, with net assets turning positive and a substantial reduction in current liabilities, primarily driven by the conversion of financial liabilities Interim Condensed Consolidated Statement of Financial Position (Summary) as at June 30, 2025 | Indicator | 2025-06-30 (RMB '000) | 2024-12-31 (RMB '000) | | :--- | :--- | :--- | | Total Non-current Assets | 63,128 | 67,703 | | Total Current Assets | 360,297 | 156,463 | | Total Current Liabilities | 76,424 | 536,150 | | Total Non-current Liabilities | 65 | 108 | | Net Assets/(Capital Deficiency) | 346,936 | (312,092) | | Total Equity/(Deficiency) | 346,936 | (312,092) | - As of June 30, 2025, the Group's net assets turned positive to **RMB 346.9 million**, compared to a capital deficiency of **RMB 312.1 million** as of December 31, 2024, primarily due to a significant reduction in current liabilities[19](index=19&type=chunk)[20](index=20&type=chunk) - Total current assets significantly increased to **RMB 360.3 million** (December 31, 2024: **RMB 156.5 million**), primarily driven by an increase in cash and cash equivalents[19](index=19&type=chunk) - Total current liabilities substantially decreased to **RMB 76.4 million** (December 31, 2024: **RMB 536.2 million**), mainly due to the conversion of financial liabilities at fair value through profit or loss (preference shares) into ordinary shares[19](index=19&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) The interim condensed consolidated statement of changes in equity shows a significant shift from a capital deficiency to positive equity, primarily driven by share issuance and the conversion of preference shares into ordinary shares, partially offset by the period's loss - As of June 30, 2025, the Group's total equity shifted from a deficiency of **RMB 312.1 million** at the beginning of the period to an equity of **RMB 346.9 million**[22](index=22&type=chunk) - The significant increase in equity was primarily due to proceeds from share issuance of **RMB 221.8 million** and the conversion of financial liabilities at fair value through profit or loss (preference shares) into ordinary shares, resulting in an increase in capital reserve of **RMB 584.1 million**[22](index=22&type=chunk) - The loss of **RMB 125.5 million** for the period and total comprehensive loss of **RMB 132.3 million** partially offset the impact of the increase in share capital[22](index=22&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The interim condensed consolidated statement of cash flows indicates a substantial increase in cash and cash equivalents, primarily driven by significant net cash generated from financing activities due to the IPO, despite a decrease in operating cash flow Interim Condensed Consolidated Statement of Cash Flows (Summary) for the Six Months Ended June 30, 2025 | Cash Flow Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Generated From Operating Activities | 817 | 15,752 | | Net Cash Used In Investing Activities | (16,910) | (25,785) | | Net Cash Generated From/(Used In) Financing Activities | 207,663 | (14,389) | | Net Increase/(Decrease) In Cash and Cash Equivalents | 191,570 | (24,422) | | Cash and Cash Equivalents at End of Period | 246,466 | 31,092 | - Net cash generated from operating activities significantly decreased to **RMB 0.8 million** (2024: **RMB 15.8 million**), primarily due to an increase in loss before income tax, although most of it was non-cash items[26](index=26&type=chunk) - Net cash generated from financing activities turned significantly positive to **RMB 207.7 million** (2024: used **RMB 14.4 million**), mainly attributable to proceeds from global offering of **RMB 221.8 million**[27](index=27&type=chunk) - Cash and cash equivalents at the end of the period significantly increased to **RMB 246.5 million** (2024: **RMB 31.1 million**), primarily influenced by IPO fundraising[28](index=28&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=14&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) These notes provide detailed explanations of the Group's company information, basis of presentation, accounting policy changes, operating segments, revenue, profit/loss before tax, income tax, dividends, earnings per share, property and equipment, receivables, payables, share capital, related party transactions, fair value of financial instruments, and post-reporting period events [1. Company Information](index=14&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) MetaLight Inc., incorporated in the Cayman Islands on May 21, 2015, listed on the HKEX Main Board on June 10, 2025, primarily provides mobile advertising and data technology services through "Che Lai Le" APP and WeChat mini-program - The Company was listed on the Main Board of the Hong Kong Stock Exchange on **June 10, 2025**[29](index=29&type=chunk) - The principal business involves providing mobile advertising services, real-time vehicle information, and data technology services through the 'Che Lai Le' APP and WeChat mini-program[29](index=29&type=chunk) [2. Basis of Presentation](index=14&type=section&id=2.%20%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in RMB according to IAS 34, with Wuhan YuanGuang Technology Co., Ltd. effectively controlled through contractual arrangements and consolidated as a subsidiary - The interim condensed consolidated financial information is prepared in **RMB '000** in accordance with International Accounting Standard 34[30](index=30&type=chunk) - The Group exercises effective control over Wuhan YuanGuang Technology Co., Ltd. through contractual arrangements, including exclusive business cooperation service agreements, exclusive call option agreements, and equity pledge agreements, and classifies it as a subsidiary[31](index=31&type=chunk)[32](index=32&type=chunk) [3. Changes in Accounting Policies and Disclosures](index=15&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95%E5%8F%8A%E6%8A%AB%E9%9C%B2) The financial information for this period adopts revised IFRS accounting standards for the first time, with IAS 21 (Revised) on lack of exchangeability having no material impact on the Group's financial information - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those in the 2024 annual report, except for the first-time adoption of revised IFRS accounting standards[33](index=33&type=chunk) - The amendments to IAS 21 (Revised) regarding lack of exchangeability had no impact on the interim condensed consolidated financial information, as the Group's transaction and functional currencies are all exchangeable[34](index=34&type=chunk) [4. Operating Segment Information](index=15&type=section&id=4.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group has only one reportable operating segment, providing mobile advertising, vehicle real-time information, and data technology services through "Che Lai Le" APP and WeChat mini-program, with all external revenue and non-current assets originating from mainland China - The Group has only one reportable operating segment, which is mobile advertising services, real-time vehicle information, and data technology services[35](index=35&type=chunk) - All external revenue during the period was derived from customers in mainland China[36](index=36&type=chunk) - All non-current assets at the end of the period were located in mainland China[37](index=37&type=chunk) Revenue Contribution from Major Customers (For the Six Months Ended June 30) | Customer | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Customer A | 21,874 | 26,847 | | Customer B | 15,073 | 19,236 | | Customer C | 16,042 | * (Less than 10%) | [5. Revenue](index=16&type=section&id=5.%20%E6%94%B6%E5%85%A5) The Group's total revenue increased by 7.6% to RMB 97.0 million, primarily contributed by mobile advertising services and data technology services, with mobile advertising being the largest component and data technology services showing the fastest growth Analysis of Revenue from Contracts with Customers (For the Six Months Ended June 30) | Service Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mobile Advertising Services | 94,158 | 88,496 | | Data Technology Services | 2,815 | 1,617 | | **Total** | **96,973** | **90,113** | Revenue from Contracts with Customers by Timing of Revenue Recognition (For the Six Months Ended June 30) | Recognition Timing | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Transferred at a point in time | 95,664 | 89,134 | | Transferred over time | 1,309 | 979 | | **Total Revenue** | **96,973** | **90,113** | [6. Profit/(Loss) Before Tax](index=17&type=section&id=6.%20%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4%EF%BC%8F%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89) The Group recorded a loss before tax of RMB 123.6 million, primarily due to a significant increase in fair value loss on financial liabilities at fair value through profit or loss Components of Profit/(Loss) Before Tax (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of Services Provided | 21,289 | 18,830 | | Net Impairment Loss/(Reversal of Impairment Loss) on Financial Assets | (712) | 83 | | Write-off of Other Receivables | – | 3 | | Net Exchange Differences | 655 | – | - Net impairment loss on financial assets shifted from a reversal of **RMB 83 thousand** in 2024 to an impairment loss of **RMB 712 thousand** in 2025[40](index=40&type=chunk) [7. Income Tax](index=18&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85) The Group's income tax expense primarily originates from mainland China, with no assessable profits in Hong Kong, and mainland China subsidiaries benefit from preferential tax rates for high-tech or small-profit enterprises - No income tax in the Cayman Islands, and no provision for Hong Kong due to no assessable profits[42](index=42&type=chunk)[43](index=43&type=chunk) - Mainland China subsidiaries enjoy preferential tax rates of **15%** for high-tech enterprises or **5%** for small-profit enterprises[44](index=44&type=chunk) Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current Tax Expense for the Period | – | 2 | | Deferred Tax Expense for the Period | 1,940 | 2,315 | | **Total Tax Expense for the Period** | **1,940** | **2,317** | [8. Dividends](index=18&type=section&id=8.%20%E8%82%A1%E6%81%AF) The Company did not declare or pay any dividends during the reporting period - The Company did not declare or pay any dividends during the period[46](index=46&type=chunk) [9. Basic and Diluted Earnings/(Loss) Per Share](index=19&type=section&id=9.%20%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E5%8F%8A%E6%94%A4%E8%96%84%E7%9B%88%E5%88%A9%EF%BC%8F%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89) Both basic and diluted loss per share for the period were RMB 1.69, primarily due to the net loss, with anti-dilutive effects of options and preference shares not considered in the calculation Calculation of Basic and Diluted Earnings/(Loss) Per Share (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Shareholders of the Company | (125,505) | 226 | | Adjustment for Fair Value Loss on Preference Shares | 119,202 | 8,006 | | Profit/(Loss) Used for Calculating Basic Earnings/(Loss) Per Share | (6,303) | 8,232 | | Number of Shares | 2025 | 2024 | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares Outstanding for Basic Earnings/(Loss) Per Share | 74,450,469 | 51,706,266 | | Dilutive Effect – Weighted Average Number of Ordinary Shares | – | 5,796,800 | | Total | 74,450,469 | 57,503,066 | - Basic and diluted loss per share for 2025 were both **RMB 1.69**, compared to **RMB 0.00** in 2024[17](index=17&type=chunk) - Options and preference shares were not included in the calculation of diluted earnings/(loss) per share for 2025 and 2024 as they had an anti-dilutive effect[49](index=49&type=chunk) [10. Property and Equipment](index=20&type=section&id=10.%20%E7%89%A9%E6%A5%AD%E5%8F%8A%E8%A8%AD%E5%82%99) The Group did not acquire or dispose of any property and equipment during the six months ended June 30, 2025 - The Group did not acquire or dispose of any assets during the six months ended June 30, 2025[51](index=51&type=chunk) [11. Trade Receivables](index=20&type=section&id=11.%20%E6%87%89%E6%94%B6%E8%B3%87%E6%AC%BE) As of June 30, 2025, net trade receivables increased to RMB 38.1 million compared to the end of 2024, primarily concentrated within 6 months Analysis of Trade Receivables | Item | 2025-06-30 (RMB '000) | 2024-12-31 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables | 39,320 | 35,487 | | Impairment | (1,261) | (1,828) | | **Net Carrying Amount** | **38,059** | **33,659** | Aging Analysis of Trade Receivables (Net of Loss Allowance) | Aging | 2025-06-30 (RMB '000) | 2024-12-31 (RMB '000) | | :--- | :--- | :--- | | Within 6 months | 37,482 | 33,357 | | 7 to 12 months | 577 | 302 | | **Total** | **38,059** | **33,659** | [12. Trade Payables](index=20&type=section&id=12.%20%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) As of June 30, 2025, total trade payables decreased to RMB 5.0 million compared to the end of 2024, primarily concentrated within 3 months Aging Analysis of Trade Payables (Based on Date of Service Acceptance) | Aging | 2025-06-30 (RMB '000) | 2024-12-31 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 1,974 | 6,118 | | 4 to 12 months | 2,324 | 870 | | 13 to 24 months | 462 | 528 | | Over 24 months | 270 | 348 | | **Total** | **5,030** | **7,864** | [13. Share Capital](index=21&type=section&id=13.%20%E8%82%A1%E6%9C%AC) The number of issued and fully paid ordinary shares significantly increased during the period due to new share issuance from the IPO and the conversion of preference shares into ordinary shares, leading to substantial growth in share capital and share premium Overview of Changes in Issued and Fully Paid Ordinary Shares | Item | As of 2025-06-30 (Number of Shares) | As of 2025-06-30 (Share Capital RMB '000) | | :--- | :--- | :--- | | At beginning of period | 63,973,298 | 44 | | Shares issued | 24,856,000 | 18 | | Conversion of financial liabilities at fair value through profit or loss | 65,447,239 | 47 | | Shares repurchased | – | – | | **At end of period** | **154,276,537** | **109** | - On June 10, 2025, the Company issued **24,856,000** ordinary shares in its initial public offering, with total cash proceeds of approximately **RMB 221.8 million**[55](index=55&type=chunk) - All **65,447,239** preference shares were converted into ordinary shares, with a total carrying value of **RMB 584.1 million**[55](index=55&type=chunk) [14. Related Party Transactions](index=22&type=section&id=14.%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) Related party transactions decreased during the period, while total key management personnel compensation increased, notably due to a significant rise in share-based payment expenses Related Party Transactions (For the Six Months Ended June 30) | Transaction Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mobile advertising services provided by entities controlled by the controlling company | – | 2,230 | | Cloud storage service fees collected by entities controlled by the controlling company | – | 29 | | IT solutions and other services provided by an associate | – | 95 | Key Management Personnel Compensation (For the Six Months Ended June 30) | Compensation Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Short-term employee benefits | 1,080 | 2,365 | | Equity-settled share-based payment expenses | 8,433 | 4,195 | | Post-employment benefits | 104 | 102 | | **Total** | **9,617** | **6,662** | [15. Fair Value and Fair Value Hierarchy of Financial Instruments](index=23&type=section&id=15.%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E5%8F%8A%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E5%B1%A4%E7%B4%9A) The fair value of the Group's financial instruments is primarily measured using discounted cash flow models, market-based valuation techniques, and option pricing methods, with financial liabilities at fair value through profit or loss (preference shares) converted to ordinary shares, resulting in zero balance at period-end Carrying Amounts and Fair Values of Financial Instruments (Summary) | Item | 2025-06-30 Carrying Amount (RMB '000) | 2024-12-31 Carrying Amount (RMB '000) | 2025-06-30 Fair Value (RMB '000) | 2024-12-31 Fair Value (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Financial Investments | 66,636 | 58,321 | 66,636 | 58,321 | | Financial Liabilities at Fair Value Through Profit or Loss | – | 465,189 | – | 465,189 | - Financial liabilities at fair value through profit or loss (preference shares) were converted into ordinary shares as of June 30, 2025, resulting in a zero fair value[59](index=59&type=chunk)[65](index=65&type=chunk) Fair Value Measurement Hierarchy (Summary) | Item | Level 1 (RMB '000) | Level 2 (RMB '000) | Level 3 (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | **Assets Measured at Fair Value** | | | | | | Financial Investments (2025-06-30) | 9,734 | 50,159 | 6,743 | 66,636 | | Financial Investments (2024-12-31) | 8,960 | 43,079 | 6,282 | 58,321 | | **Liabilities Measured at Fair Value** | | | | | | Financial Liabilities at Fair Value Through Profit or Loss (2025-06-30) | – | – | – | – | | Financial Liabilities at Fair Value Through Profit or Loss (2024-12-31) | – | – | 465,189 | 465,189 | - Changes in Level 3 fair value measurements during the period show a fair value gain of **RMB 461 thousand** for financial investments, while financial liabilities at fair value through profit or loss recorded a fair value loss of **RMB 119.2 million**, subsequently reduced by **RMB 584.1 million** due to conversion into ordinary shares[66](index=66&type=chunk) [16. Events After the Reporting Period](index=26&type=section&id=16.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) After the reporting period, the Group converted an unlisted convertible debt investment of RMB 1.0 million into a 5.0% equity stake in the investee entity and made an additional investment, increasing its total shareholding to 10.0% - On July 31, 2025, the Group converted an unlisted convertible debt investment of **RMB 1.0 million** into a **5.0%** equity stake in the investee entity[68](index=68&type=chunk) - Concurrently, an additional investment of **RMB 1.0 million** was made, bringing the total shareholding to **10.0%**[68](index=68&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the Group's financial performance, including revenue, cost of sales, gross profit, operating expenses, other income/losses, fair value changes, non-IFRS measures, liquidity, capital resources, human resources, significant investments, and financial risks [Revenue](index=27&type=section&id=%E6%94%B6%E5%85%A5) The Group's total revenue increased by 7.6% to RMB 97.0 million, driven by growth in mobile advertising services and data technology services, benefiting from user growth and business expansion Revenue by Business Segment (For the Six Months Ended June 30) | Business Segment | 2025 (RMB '000) | 2024 (RMB '000) | Change Percentage | | :--- | :--- | :--- | :--- | | Mobile Advertising Services | 94,158 | 88,496 | 6.4% | | Data Technology Services | 2,815 | 1,617 | 74.1% | | **Total** | **96,973** | **90,113** | **7.6%** | - Mobile advertising services revenue increased by **RMB 5.7 million**, primarily due to the Company's continuous provision of high-quality public transportation information services, leading to growth in service coverage cities and users[69](index=69&type=chunk) - Data technology services revenue increased by **RMB 1.2 million**, mainly due to the Company's continuous expansion of its public transportation analytics platform business and collaboration with more transportation agencies[69](index=69&type=chunk) [Cost of Sales](index=27&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by 13.06% year-on-year to RMB 21.3 million, with its proportion to revenue rising to 22.0%, primarily due to increased cross-network advertising fees - Cost of sales was **RMB 21.3 million**, an increase of **RMB 2.5 million** or **13.06%** compared to the same period last year[70](index=70&type=chunk) - The proportion of cost of sales to revenue increased from **20.9%** to **22.0%**[70](index=70&type=chunk) - The increase in cost of sales was primarily due to increased cross-network advertising fees[70](index=70&type=chunk) [Gross Profit and Gross Margin](index=28&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by 6.2% year-on-year to RMB 75.7 million, but the gross margin slightly decreased from 79.1% to 78.1% - Gross profit increased by **6.2%** from **RMB 71.3 million** to **RMB 75.7 million**[71](index=71&type=chunk) - Gross margin decreased from **79.1%** to **78.1%**[71](index=71&type=chunk) [Selling Expenses](index=28&type=section&id=%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Selling expenses increased to RMB 18.7 million year-on-year, primarily due to increased advertising and promotion expenses aimed at attracting new users and enhancing user engagement - Selling expenses increased from **RMB 16.7 million** to **RMB 18.7 million**[72](index=72&type=chunk) - The increase was primarily attributable to higher advertising and promotion expenses to attract new users and enhance user engagement for 'Che Lai Le'[72](index=72&type=chunk) [Administrative Expenses](index=28&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses significantly increased year-on-year to RMB 38.0 million, mainly due to higher listing expenses and share-based payment expenses - Administrative expenses increased from **RMB 27.0 million** to **RMB 38.0 million**[73](index=73&type=chunk) - The increase was primarily due to higher listing expenses and share-based payment expenses[73](index=73&type=chunk) [Research and Development Expenses](index=28&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) Research and development expenses increased year-on-year to RMB 21.6 million, primarily due to higher staff costs for additional R&D personnel engaged in new business initiatives and increased share-based payment expenses - Research and development expenses increased from **RMB 18.6 million** to **RMB 21.6 million**[74](index=74&type=chunk) - The increase was primarily due to higher staff costs for additional R&D personnel hired for new business initiatives and increased share-based payment expenses[74](index=74&type=chunk) [Other Income](index=28&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income decreased by 11.7% year-on-year to RMB 2.2 million, mainly due to lower investment income and fair value gains on financial investments, partially offset by increased government grants - Other income was **RMB 2.2 million**, a decrease of **RMB 0.3 million** or **11.7%** compared to the same period last year[75](index=75&type=chunk) - Primarily due to a decrease in investment income of **RMB 0.8 million** and a decrease in fair value gains on financial investments at fair value through profit or loss of **RMB 0.4 million**[75](index=75&type=chunk) - Partially offset by an increase in government grants of **RMB 0.9 million**[75](index=75&type=chunk) [Other Losses](index=29&type=section&id=%E5%85%B6%E4%BB%96%E8%99%A7%E6%90%8D) Other losses significantly increased to RMB 4.2 million, primarily due to fair value losses on equity investments at fair value through profit or loss and exchange differences - Other losses for the six months ended June 30, 2025, were **RMB 4.2 million**, compared to **RMB 0.2 million** in the same period last year[76](index=76&type=chunk) - Primarily due to fair value losses on equity investments at fair value through profit or loss held by the Company and exchange differences[76](index=76&type=chunk) [Fair Value Loss on Financial Liabilities at Fair Value Through Profit or Loss](index=29&type=section&id=%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E7%95%B6%E6%9C%9F%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B2%A0%E5%82%B5%E7%9A%84%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E6%90%8D%E5%A4%B1) A fair value loss of RMB 119.2 million was recorded, a significant increase from the prior year, mainly due to adjustments in the carrying value of contingently redeemable preference shares, with future fluctuations expected to cease following their conversion to ordinary shares post-IPO - A fair value loss of **RMB 119.2 million** was recorded, a significant increase from **RMB 8.0 million** in the same period of 2024[77](index=77&type=chunk) - This change primarily stemmed from adjustments to the carrying value of contingently redeemable preference shares, driven by changes in their redemption price[77](index=77&type=chunk) - Following the Group's successful listing, these preference shares have been automatically converted into ordinary shares, and such fair value fluctuations are not expected to recur in the future[77](index=77&type=chunk) [Non-IFRS Measures](index=29&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F) The Group uses adjusted net profit (non-IFRS measure) as a supplementary indicator, excluding fair value losses on financial liabilities, listing expenses, share-based payment expenses, and fair value changes of equity investments, to better reflect core operating performance - Adjusted net profit (non-IFRS measure) is defined as (loss)/profit for the year/period, adjusted to exclude (i) fair value loss on financial liabilities at fair value through profit or loss, (ii) listing expenses, (iii) share-based payment expenses, and (iv) fair value changes of equity investments at fair value[79](index=79&type=chunk) - The new adjustment item (iv) was added because the fair value fluctuations of these equity investments significantly increased in the first half of 2025, being non-operating and non-cash in nature, and having a material impact on reflecting the Group's core operating performance[79](index=79&type=chunk) Adjusted Net Profit (Non-IFRS Measure) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | (125,505) | 226 | | Adjustments for: | | | | Fair Value Loss on Financial Liabilities at Fair Value Through Profit or Loss | 119,202 | 8,006 | | Listing Expenses | 17,499 | 12,371 | | Share-based Payment Expenses | 13,275 | 6,467 | | Fair Value Changes of Equity Investments at Fair Value | 3,712 | (424) | | **Adjusted Net Profit (Non-IFRS Measure)** | **28,183** | **26,646** | [Liquidity and Capital Resources](index=31&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The Group's liquidity significantly improved, with a substantial increase in cash and cash equivalents, a shift to positive net current assets, and a sharp decrease in the gearing ratio, primarily due to IPO fundraising and the conversion of preference shares to ordinary shares [Overview of Liquidity and Capital Resources](index=31&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90%E6%A6%82%E8%A7%80) Net cash generated from operating activities was RMB 0.8 million, net cash used in investing activities was RMB 16.9 million, and net cash generated from financing activities was RMB 207.7 million, primarily from IPO proceeds and new bank borrowings - Net cash generated from operating activities was **RMB 0.8 million**, primarily affected by loss before income tax (mostly non-cash items)[80](index=80&type=chunk) - Net cash used in investing activities was **RMB 16.9 million**, mainly for the purchase of financial investments, partially offset by the redemption of matured structured deposits[81](index=81&type=chunk) - Net cash generated from financing activities was **RMB 207.7 million**, primarily from proceeds of the global offering and new bank borrowings[81](index=81&type=chunk) [Cash and Cash Equivalents](index=32&type=section&id=%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) As of June 30, 2025, cash and cash equivalents significantly increased to RMB 246.5 million, a 337.8% growth from December 31, 2024, primarily due to IPO proceeds - As of June 30, 2025, cash and cash equivalents were **RMB 246.5 million**, a **337.8%** increase from December 31, 2024[83](index=83&type=chunk) - The increase was primarily due to the completion of the listing on **June 10, 2025**, and proceeds from the initial public offering of shares[83](index=83&type=chunk) [Trade Receivables](index=32&type=section&id=%E6%87%89%E6%94%B6%E8%B3%87%E6%AC%BE) As of June 30, 2025, trade receivables increased to RMB 38.1 million, a RMB 4.4 million increase from December 31, 2024, mainly due to higher single-month advertising revenue in June from events like 618 - As of June 30, 2025, trade receivables were **RMB 38.1 million**, an increase of **RMB 4.4 million** compared to December 31, 2024[84](index=84&type=chunk) - The increase was mainly due to higher single-month advertising revenue in June driven by festivals such as 618[84](index=84&type=chunk) [Trade Payables](index=32&type=section&id=%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) As of June 30, 2025, trade payables decreased to RMB 5.0 million, a RMB 2.8 million decrease from December 31, 2024, primarily due to the payment of previously accrued commercial promotion expenses - As of June 30, 2025, trade payables were **RMB 5.0 million**, a decrease of **RMB 2.8 million** compared to December 31, 2024[85](index=85&type=chunk) - The decrease was mainly due to the Company's payment of previously accrued commercial promotion expenses during the period[85](index=85&type=chunk) [Bank Loans as at June 30, 2025](index=32&type=section&id=%E6%96%BC2025%E5%B9%B46%E6%9C%8830%E6%97%A5%E7%9A%84%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE) As of June 30, 2025, the Group had several bank loans totaling RMB 40 million, secured by patent pledges and guarantees, with two loans maturing in July and August 2025 already fully repaid Bank Loan Details (As of June 30, 2025) | Borrower | Loan Amount (RMB '000) | Annual Interest Rate | Maturity Date | Collateral, Guarantee Status | | :--- | :--- | :--- | :--- | :--- | | Beijing YuanGuang ZhiXing Information Technology Co., Ltd. | 10,000 | 2.8% | 2025-07-19 | Patent pledge | | Beijing YuanGuang ZhiXing Information Technology Co., Ltd. | 10,000 | 2.2% | 2026-06-27 | Wuhan YuanGuang Technology Co., Ltd. guarantee | | Wuhan YuanGuang Technology Co., Ltd. | 10,000 | 2.9% | 2025-12-10 | Patent pledge and Beijing YuanGuang ZhiXing Information Technology Co., Ltd. guarantee | | Wuhan YuanGuang Technology Co., Ltd. | 10,000 | 3.0% | 2025-08-20 | Patent pledge and Wuhan YuanGuang Technology Co., Ltd. and Beijing YuanGuang ZhiXing Information Technology Co., Ltd. guarantee | - As of the date of the interim results announcement, two loans maturing in July and August 2025, respectively, have been fully repaid[87](index=87&type=chunk) [Gearing Ratio](index=33&type=section&id=%E8%B3%87%E7%94%A2%E5%82%B5%E5%8B%99%E6%AF%94%E7%8E%87) As of June 30, 2025, the gearing ratio significantly decreased to 18.1% from 239.2% as of December 31, 2024 - As of June 30, 2025, the gearing ratio was **18.1%**, a significant decrease from **239.2%** as of December 31, 2024[88](index=88&type=chunk) [Net Current Assets/(Liabilities)](index=33&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%EF%BC%8F%EF%BC%88%E8%B2%A0%E5%82%B5%EF%BC%89%E6%B7%A8%E5%80%BC) As of June 30, 2025, the Group recorded net current assets of RMB 283.9 million, a significant improvement from net current liabilities of RMB 379.7 million as of December 31, 2024, primarily due to the conversion of redeemable preference shares from liabilities to equity - As of June 30, 2025, net current assets of **RMB 283.9 million** were recorded, compared to net current liabilities of **RMB 379.7 million** as of December 31, 2024[89](index=89&type=chunk) - The current ratio increased from **0.3** as of December 31, 2024, to **4.7** as of June 30, 2025[89](index=89&type=chunk) - The change was primarily due to the conversion of redeemable preference shares from liabilities to equity[89](index=89&type=chunk) [Capital Structure](index=33&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Company's capital comprises ordinary shares and reserves, funded by operating cash flow, shareholder contributions, bank financing, and net proceeds from the initial public offering - The Company's capital comprises ordinary shares and reserves, with funding sources including cash flow from operating activities, shareholder contributions, bank financing, and net proceeds from the initial public offering[90](index=90&type=chunk) [Contingent Liabilities](index=33&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[91](index=91&type=chunk) [Human Resources](index=34&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) The Group values its employees, with 138 staff members all located in China as of June 30, 2025, offering competitive compensation, equity incentives, and comprehensive training programs to attract and retain talent - As of June 30, 2025, the Group had a total of **138** employees, all located in China[92](index=92&type=chunk) - Total staff costs (including directors' remuneration) for the six months ended June 30, 2025, amounted to **RMB 39.6 million**[92](index=92&type=chunk) - Compensation policy is based on employee performance and experience, offering competitive salaries, performance bonuses, and share options, with participation in various government-organized employee social security schemes[93](index=93&type=chunk)[95](index=95&type=chunk) - The Group provides comprehensive training programs, including new employee onboarding, core competency development, internal training team capability enhancement, and key talent development plans[96](index=96&type=chunk) [Material Acquisitions and Disposals and Significant Investments](index=35&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85%E4%BB%A5%E5%8F%8A%E9%87%8D%E8%A6%81%E6%8A%95%E8%B3%87) The Group has not undertaken any material acquisitions or disposals since its listing date, and during the period, it subscribed to structured deposit products to enhance capital returns, with these investments not sourced from IPO proceeds [Material Acquisitions and Disposals](index=35&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) From the listing date to June 30, 2025, the Group did not hold any material acquisitions or disposals of subsidiaries, associates, or joint ventures - From the listing date to June 30, 2025, the Group did not hold any material acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any other material acquisitions[97](index=97&type=chunk) [Future Plans for Material Investments and Capital Assets](index=35&type=section&id=%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) The Group invested in structured deposit products with Shanghai Sci-Tech Bank, totaling RMB 45.1 million in fair value as of June 30, 2025, representing 10.7% of total assets, with these funds not sourced from IPO proceeds Structured Deposit Product Details (As of June 30, 2025) | Trustee | Wealth Management Type | Wealth Management Amount (RMB) | Start Date | End Date | Annualized Yield | Actual Gain or (Loss) (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Sci-Tech Bank | Structured Deposit | 5,000,000.00 | 2025-03-31 | 2025-07-01 | 2.25% | 28,750.00 | | Shanghai Sci-Tech Bank | Structured Deposit | 20,000,000.00 | 2025-04-21 | 2025-07-21 | 2.25% | 88,750.00 | | Shanghai Sci-Tech Bank | Structured Deposit | 5,000,000.00 | 2025-06-13 | 2025–09-15 | 2.05% | 5,125.00 | | Shanghai Sci-Tech Bank | Structured Deposit | 15,000,000.00 | 2025-06-20 | 2025-09-22 | 2.05% | 9,395.83 | - As of June 30, 2025, the fair value of Shanghai Sci-Tech Bank structured deposits was **RMB 45.1 million**, accounting for **10.7%** of total assets[98](index=98&type=chunk) - These investment funds were not sourced from the Company's initial public offering proceeds[98](index=98&type=chunk) [Capital Commitments](index=36&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no capital commitments contracted but not recognized as liabilities - As of June 30, 2025, the Group had no capital commitments contracted but not recognized as liabilities[100](index=100&type=chunk) [Capital Expenditure](index=36&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) The Group incurred no capital expenditure during the reporting period - The Group incurred no capital expenditure during the reporting period[101](index=101&type=chunk) [Pledged Assets](index=36&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged certain patent rights for RMB 30 million in bank borrowings, with these patents retaining economic value and legal enforceability despite a zero carrying value - As of June 30, 2025, the Group pledged certain patent rights in exchange for **RMB 30 million** in bank borrowings[102](index=102&type=chunk) - Despite a net carrying value of zero for these patents, they retain economic value and legal enforceability[102](index=102&type=chunk) [Financial Risks](index=36&type=section&id=%E9%87%91%E8%9E%8D%E9%A2%A8%E9%9A%AA) The Group faces credit, liquidity, and exchange rate risks, which are managed through credit verification, maintaining adequate cash levels, and continuous monitoring of exchange rate fluctuations [Credit Risk](index=36&type=section&id=%E4%BF%A1%E8%B2%B8%E9%A2%A8%E9%9A%AA) Credit risk primarily arises from trade receivables and is managed through individual credit verification procedures for customers and continuous monitoring of outstanding balances - Credit risk primarily arises from trade receivables and is managed through individual credit verification procedures for customers and continuous monitoring of outstanding balances[104](index=104&type=chunk) [Liquidity Risk](index=36&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E9%A2%A8%E9%9A%AA) The Group manages liquidity risk by monitoring and maintaining sufficient levels of cash and cash equivalents to fund operations and mitigate the impact of cash flow fluctuations - The Group manages liquidity risk by monitoring and maintaining sufficient levels of cash and cash equivalents to fund operations and mitigate the impact of cash flow fluctuations[105](index=105&type=chunk) [Exchange Rate Fluctuation Risk](index=37&type=section&id=%E5%8C%AF%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group's functional currency is RMB, but some cash and financial assets are denominated in USD and HKD, exposing it to foreign exchange risk, which management continuously monitors without a current hedging policy - The Group's functional currency is RMB, but some cash and financial assets are denominated in USD and HKD, exposing it to foreign exchange risk[106](index=106&type=chunk) - Currently, there is no foreign currency hedging policy, and management will continue to monitor and take prudent measures when appropriate[106](index=106&type=chunk) [Other Information](index=37&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers the interim dividend, corporate governance, transactions involving the Company's listed securities, compliance with the Model Code, post-reporting period events, review of interim results, and publication of the interim results announcement and report [Interim Dividend](index=37&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[107](index=107&type=chunk) [Corporate Governance](index=37&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) Since its listing on June 10, 2025, the Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules, committed to achieving high standards of corporate governance - The Company has adopted the Corporate Governance Code as its corporate governance code since the listing date[108](index=108&type=chunk) - From the listing date to the date of this announcement, the Company has complied with all applicable code provisions under the Corporate Governance Code[108](index=108&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=37&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities from the listing date to June 30, 2025, and no treasury shares were held at period-end - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities from the listing date to June 30, 2025[109](index=109&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[109](index=109&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=37&type=section&id=%E9%81%B5%E5%AE%88%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E4%B9%8B%E3%80%8A%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87%E3%80%8B) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for directors' securities transactions and has complied with it since the listing date - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for directors' securities transactions[110](index=110&type=chunk) - Following specific inquiries made to all Directors, each Director has confirmed compliance with the Model Code from the listing date to the date of this announcement[110](index=110&type=chunk) [Post-Reporting Period Events](index=38&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) On July 31, 2025, the Group converted an RMB 1.0 million unlisted convertible debt investment into a 5.0% equity stake in the investee entity and made an additional RMB 1.0 million investment, increasing its total shareholding to 10.0% - On July 31, 2025, the Group agreed to convert the entire principal amount of its unlisted convertible debt investment of **RMB 1.0 million**, along with related accrued interest, into a **5.0%** equity stake in the investee entity[111](index=111&type=chunk) - It also agreed to invest an additional **RMB 1.0 million** in the investee entity, resulting in the Group collectively owning a **10.0%** equity stake in the investee entity[111](index=111&type=chunk) [Review of Interim Results](index=38&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Company's Audit Committee reviewed the Group's unaudited consolidated financial statements and results for the six months ended June 30, 2025, confirming their preparation in accordance with applicable accounting standards, and the interim results were reviewed by Ernst & Young in accordance with HKSRE 2410 - The Audit Committee has reviewed the Group's unaudited consolidated financial statements and results for the six months ended June 30, 2025, and considers them to be prepared in accordance with applicable accounting standards[112](index=112&type=chunk) - The interim results are unaudited but have been reviewed by the Company's independent auditor, Ernst & Young, in accordance with Hong Kong Standard on Review Engagements 2410[112](index=112&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=38&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the HKEX and Company websites, and the Company's 2025 interim report will be published in due course - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.metalight.com.cn)[113](index=113&type=chunk) - The Company's 2025 interim report will be published on the HKEX and Company websites in due course[113](index=113&type=chunk) [Definitions](index=38&type=section&id=%E9%87%8B%E7%BE%A9) This section provides a glossary of key terms and abbreviations used throughout the report for clarity and consistency

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 SHAW BROTHERS HOLDINGS LIMITED 邵氏兄弟控股有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：00953） 截至二零二五年六月三十日止六個月 未經審核中期業績公告 二零二五年中期業績摘要 — 1 — | | 截至六月三十日止六個月 | | | | --- | --- | --- | --- | | | 二零二五年 | 二零二四年 | 變動 | | | 人民幣 | 人民幣 | | | | （未經審核） | （未經審核） | | | 收入 | | | | | 電影、劇集及非劇集 （千元） | 95,343 | 2,269 | 4102.0% | | 藝人及活動管理 （千元） | 11,037 | 10,477 | 5.3% | | 總計 （千元） | 106,380 | 12,746 | 734.6% | | 分部溢利（虧損） | | | ...

Performance Highlights [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The company experienced declines in turnover, gross profit, profit attributable to owners, and basic EPS for H1 2025, with no interim dividend recommended H1 2025 Performance Summary | Metric | H1 2025 (RMB) | H1 2024 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Turnover | 932,300,000 | 987,765,000 | Decreased 5.6% | | Gross Profit | 116,700,000 | 144,084,000 | Decreased 19.0% | | Gross Profit Margin | 12.5% | 14.6% | Decreased 2.1 percentage points | | Profit attributable to owners of the Company for the period | 35,200,000 | 42,400,000 | Decreased 16.98% | | Basic earnings per share | 0.040 | 0.049 | Decreased 18.37% | | Interim Dividend | Not recommended for distribution | HKD 0.02 | Not distributed | Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For H1 2025, group turnover decreased by 5.6% to RMB 932,301 thousand, gross profit fell by 19.0% to RMB 116,676 thousand, and profit for the period was RMB 19,231 thousand Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Turnover | 932,301 | 987,765 | | Cost of sales | (815,625) | (843,681) | | Gross Profit | 116,676 | 144,084 | | Other income and gains | 18,100 | 18,166 | | Selling expenses | (40,747) | (36,327) | | Administrative and other operating expenses | (52,197) | (83,289) | | Finance costs | (6,395) | (638) | | Profit before income tax | 35,437 | 41,996 | | Income tax expense | (16,206) | (8,146) | | Profit for the period | 19,231 | 33,850 | | Profit attributable to owners of the Company for the period | 35,154 | 42,357 | | Profit/(Loss) attributable to non-controlling interests for the period | (15,923) | (8,507) | | Basic earnings per share | RMB 0.040 | RMB 0.049 | | Diluted earnings per share | RMB 0.040 | RMB 0.049 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for H1 2025 significantly decreased to RMB 13,056 thousand, primarily due to a shift from gain to loss in currency translation differences Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the period | 19,231 | 33,850 | | Other comprehensive income - Currency translation differences | (6,175) | 737 | | Total comprehensive income for the period | 13,056 | 34,587 | | Total comprehensive income attributable to owners of the Company | 28,803 | 43,242 | | Total comprehensive income attributable to non-controlling interests | (15,747) | (8,655) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets less current liabilities slightly decreased, with increases in trade and bills receivables and cash balances, and a significant reduction in time deposits Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current assets | 1,662,114 | 1,659,245 | | Current assets | 1,520,861 | 1,425,188 | | Current liabilities | 653,606 | 524,507 | | Net current assets | 867,255 | 900,681 | | Total assets less current liabilities | 2,529,369 | 2,559,926 | | Non-current liabilities | 24,778 | 45,002 | | Net assets | 2,504,591 | 2,514,924 | | Equity attributable to owners of the Company | 2,425,517 | 2,420,103 | | Non-controlling interests | 79,074 | 94,821 | | Total equity | 2,504,591 | 2,514,924 | - Within current assets, **trade and bills receivables increased from RMB 377,774 thousand to RMB 461,932 thousand**, and **bank and cash balances increased from RMB 358,214 thousand to RMB 633,913 thousand**, while **time deposits decreased from RMB 493,340 thousand to RMB 215,006 thousand**[5](index=5&type=chunk) - Bank borrowings within current liabilities significantly **increased from RMB 220,134 thousand to RMB 354,191 thousand**[5](index=5&type=chunk) Notes to the Financial Statements [General Information](index=5&type=section&id=1.%20General%20Information) TianDe Chemical Holdings Limited is an exempted company incorporated in the Cayman Islands, primarily engaged in investment holding and the R&D, manufacturing, and sale of fine chemical products - The Company is an exempted company incorporated in the Cayman Islands, with shares listed on the Hong Kong Stock Exchange[6](index=6&type=chunk) - The Company's principal business is investment holding, while the Group's principal activities are the research, development, manufacturing, and sale of fine chemical products[7](index=7&type=chunk) [Basis of Preparation and Presentation](index=5&type=section&id=2.%20Basis%20of%20Preparation%20and%20Presentation) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, presented in RMB, and reviewed by BDO Limited - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix D2 of the Listing Rules[8](index=8&type=chunk) - The Company's functional currency is HKD, but financial information is presented in RMB due to its principal operations being in China[8](index=8&type=chunk) - The financial information is unaudited but has been reviewed by BDO Limited[8](index=8&type=chunk) [Significant Accounting Policies](index=5&type=section&id=3.%20Significant%20Accounting%20Policies) Amendments to HKAS 21 and HKFRS 1, concerning non-exchangeable currencies and exchange rate estimation, were first applied this interim period with no significant impact, while HKFRS 18 is expected to significantly affect financial statement presentation - The first-time application of amendments to Hong Kong Accounting Standard 21 and Hong Kong Financial Reporting Standard 1, concerning the assessment of non-exchangeable currencies, had **no impact on the Group's condensed consolidated interim financial statements**[9](index=9&type=chunk)[10](index=10&type=chunk) - Hong Kong Financial Reporting Standard 18 will replace Hong Kong Accounting Standard 1, and is expected to have a **significant impact on the classification of profit or loss, subtotals, aggregation/disaggregation of information, and disclosure of management performance measures**[11](index=11&type=chunk) [Turnover and Segment Information](index=7&type=section&id=4.%20Turnover%20and%20Segment%20Information) The Group identifies R&D, manufacturing, and sale of fine chemical products as a single operating segment, with total turnover of RMB 932,301 thousand for H1 2025, showing decreased domestic sales but increased sales in UAE, USA, and Brazil - The Group identifies the research, development, manufacturing, and sale of fine chemical products as a **single operating segment**[12](index=12&type=chunk) Classified Turnover from External Customers (By Geographical Region) | Region | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | China (Domestic) | 643,615 | 708,475 | -9.29% | | India | 103,938 | 124,289 | -16.40% | | United Arab Emirates | 41,891 | 24,533 | +70.76% | | United States | 29,300 | 16,375 | +78.93% | | Brazil | 21,459 | 6,112 | +251.10% | | Others | 92,098 | 107,981 | -14.71% | | **Total** | **932,301** | **987,765** | **-5.62%** | - For the period ended June 30, 2025, **no single customer accounted for 10% or more of the Group's revenue**[14](index=14&type=chunk) [Finance Costs](index=7&type=section&id=5.%20Finance%20Costs) Finance costs for H1 2025 significantly increased to RMB 6,395 thousand from RMB 638 thousand in the prior period, driven by interest on bank borrowings, asset-backed financing, and supplier financing arrangements Finance Costs Details (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest on bank borrowings repayable within one year and containing a repayment on demand clause | 2,701 | 638 | | Interest on asset-backed financing | 391 | - | | Interest on supplier financing arrangements | 3,202 | - | | Interest on advances from related parties | 101 | - | | **Total** | **6,395** | **638** | [Profit Before Income Tax](index=8&type=section&id=6.%20Profit%20Before%20Income%20Tax) Profit before income tax for H1 2025 was RMB 35,437 thousand, with decreased total employee costs but increased inventory costs and depreciation of property, plant, and equipment, alongside a significant reduction in research costs Profit Before Income Tax Deducted/(Credited) Items (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Total employee costs | 83,686 | 97,910 | | Depreciation of right-of-use assets | 1,287 | 1,287 | | Amortisation of intangible assets | 902 | 902 | | Cost of inventories recognised as expense | 815,625 | 843,681 | | Depreciation of property, plant and equipment | 90,487 | 83,700 | | (Gain)/Loss on disposal of property, plant and equipment, net | (1,018) | 43 | | Provision for impairment loss on trade receivables | 1,484 | 110 | | Loss on write-off of property, plant and equipment | 2,353 | 8 | | Research costs | 22,669 | 54,426 | - **Research costs significantly decreased from RMB 54,426 thousand in H1 2024 to RMB 22,669 thousand in H1 2025**[16](index=16&type=chunk) - **Depreciation of property, plant and equipment increased from RMB 83,700 thousand in H1 2024 to RMB 90,487 thousand in H1 2025**[16](index=16&type=chunk) [Income Tax Expense](index=9&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense for H1 2025 significantly increased to RMB 16,206 thousand from RMB 8,146 thousand in the prior period, primarily due to a substantial rise in withholding tax paid on China dividends Income Tax Expense Details (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax—China corporate income tax - Tax for the period | 11,319 | 9,167 | | Current tax—China corporate income tax - Over-provision in prior years | (641) | (1,172) | | Current tax—China corporate income tax - Withholding tax paid on China dividends | 25,706 | 970 | | Deferred tax - Credit for the period | (20,178) | (819) | | **Total Income Tax Expense** | **16,206** | **8,146** | - **Withholding tax paid on China dividends significantly increased from RMB 970 thousand in H1 2024 to RMB 25,706 thousand in H1 2025**[17](index=17&type=chunk) - China subsidiaries are subject to corporate income tax at a rate of **25%**, with China withholding tax rates of **5% or 10%**[18](index=18&type=chunk) [Dividends](index=9&type=section&id=8.%20Dividends) Shareholders approved a final dividend of HKD 0.03 per share for 2024, but the Board does not recommend any interim dividend for H1 2025, compared to HKD 0.02 per share in the prior period - The 2024 final dividend of **HKD 0.03 per share** (2023: HKD 0.10) was approved at the AGM on June 6, 2025, totaling **RMB 24,218,000**[19](index=19&type=chunk) - The Board does not recommend any interim dividend for the six months ended June 30, 2025 (H1 2024: HKD 0.02 per share)[19](index=19&type=chunk) [Earnings Per Share](index=10&type=section&id=9.%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners of the Company for H1 2025 both decreased to RMB 0.040, down from RMB 0.049 in the prior period Earnings Per Share Calculation Data (For the six months ended June 30) | Metric | 2025 (RMB '000/thousand shares) | 2024 (RMB '000/thousand shares) | | :--- | :--- | :--- | | Profit attributable to owners of the Company for the period | 35,154 | 42,357 | | Weighted average number of ordinary shares for basic EPS | 877,462 | 869,418 | | Dilutive effect of potential ordinary shares - Share options | 44 | 4,188 | | Weighted average number of ordinary shares for diluted EPS | 877,506 | 873,606 | | **Basic earnings per share** | **RMB 0.040** | **RMB 0.049** | | **Diluted earnings per share** | **RMB 0.040** | **RMB 0.049** | [Trade and Bills Receivables](index=10&type=section&id=10.%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased to RMB 461,932 thousand from RMB 377,774 thousand at December 31, 2024, with a notable increase in receivables over 365 days - The Group generally grants credit terms of **one to six months** to its trade customers[21](index=21&type=chunk) Ageing Analysis of Trade and Bills Receivables (By invoice date) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 90 days | 321,193 | 275,588 | | 91 to 180 days | 49,260 | 87,238 | | 181 to 365 days | 78,260 | 14,753 | | Over 365 days | 13,219 | 195 | | **Total** | **461,932** | **377,774** | [Trade Payables](index=11&type=section&id=11.%20Trade%20Payables) As of June 30, 2025, total trade payables slightly increased to RMB 40,755 thousand from RMB 37,901 thousand at December 31, 2024, with credit terms from suppliers ranging from 30 to 270 days - The Group is granted credit terms by its suppliers ranging from **30 to 270 days**[22](index=22&type=chunk) Ageing Analysis of Trade Payables (By invoice date) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 90 days | 35,600 | 32,497 | | 91 to 180 days | 851 | 1,798 | | 181 to 365 days | 1,666 | 1,533 | | Over 365 days | 2,638 | 2,073 | | **Total** | **40,755** | **37,901** | Management Discussion and Analysis [Business Review](index=11&type=section&id=Business%20Review) Domestic manufacturing faces downward pressure from macroeconomic headwinds, geopolitical tensions, and US tariffs, but the Group's overseas market expansion and capacity increase for potential products partially offset negative impacts, leading to a slight decline in total turnover - Persistent adverse macroeconomic factors, international geopolitical tensions, and US tariff policies have severely impacted domestic manufacturing, leading to **increased downward pressure on the overall domestic economy and declining product selling prices**[23](index=23&type=chunk) - The Group strategically allocated marketing resources to developing overseas markets, achieving **moderate year-on-year growth in overseas sales** through an expanded international marketing network[23](index=23&type=chunk) - Expanding production capacity for products with market potential successfully opened new application areas in downstream industries and broadened product applications in international markets, helping to **mitigate the adverse effects of declining product selling prices**[23](index=23&type=chunk) - Domestic deflation led to a decrease in average raw material costs, and the Group improved efficiency through automated production and a circular economy system, but these efforts could not fully offset the negative impact of declining product selling prices, resulting in **reduced gross profit and gross profit margin**[24](index=24&type=chunk) [Outlook](index=12&type=section&id=Outlook) Facing US-China trade tensions, domestic economic slowdown, and deflation, the Group is actively expanding its business scope, diversifying risks, enhancing operational flexibility, optimizing product portfolio, and seeking new revenue streams, while strengthening cash flow management and maintaining confidence in long-term prospects - Ongoing US-China trade tensions and US tariff policies pose significant pressure on the domestic economy, with a **continued slowdown and deepening deflation expected to bring severe challenges to domestic manufacturing**[25](index=25&type=chunk) - The Group is actively expanding its business scope and diversifying its business risks, enhancing operational flexibility, continuously optimizing its product portfolio, and actively seeking new revenue sources[25](index=25&type=chunk) - Strengthening cash flow management and improving operational efficiency remain key priorities for the Group, and the Board remains **confident in the Group's long-term prospects**[25](index=25&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) Turnover decreased by 5.6% to RMB 932.3 million due to domestic economic downturn and falling product prices; gross profit fell 19.0% to RMB 116.7 million, with margin shrinking to 12.5%; selling expenses rose, administrative expenses decreased, and finance costs significantly increased [Turnover and Gross Profit](index=12&type=section&id=Turnover%20and%20Gross%20Profit) Total turnover decreased by 5.6% to RMB 932.3 million due to domestic economic downturn and falling product prices; gross profit fell 19.0% to RMB 116.7 million, with margin shrinking to 12.5%, despite lower raw material costs and improved efficiency - Total turnover **decreased by 5.6% to approximately RMB 932.3 million** (H1 2024: RMB 987.8 million), primarily due to a significant decline in overall product selling prices caused by the prolonged domestic economic downturn[26](index=26&type=chunk) - Gross profit **decreased by 19.0% to approximately RMB 116.7 million** (H1 2024: RMB 144.1 million), and gross profit margin **contracted by 2.1 percentage points to 12.5%** (H1 2024: 14.6%), mainly because the decline in product selling prices was not fully offset by lower raw material costs and improved operational efficiency[27](index=27&type=chunk) [Operating Expenses](index=13&type=section&id=Operating%20Expenses) Selling expenses increased by 12.1% to RMB 40.7 million due to higher transportation costs from increased domestic sales of hazardous products, while administrative and other operating expenses significantly decreased by 37.3% to RMB 52.2 million, mainly due to lower research and development expenses - Selling expenses **increased by approximately RMB 4.4 million to approximately RMB 40.7 million**, primarily due to higher transportation costs resulting from increased domestic sales of hazardous products[28](index=28&type=chunk) - Administrative and other operating expenses **decreased by approximately RMB 31.1 million or 37.3% to approximately RMB 52.2 million**, mainly due to a reduction in research and development expenses[28](index=28&type=chunk) [Finance Costs](index=13&type=section&id=Finance%20Costs) Finance costs significantly increased by approximately RMB 5.8 million to RMB 6.4 million, primarily due to a strategic increase in bank borrowings, asset-backed financing, supplier financing arrangements, and advances from related parties to optimize short-term liquidity management - Finance costs were approximately **RMB 6.4 million**, an **increase of approximately RMB 5.8 million** compared to the same period last year, primarily from interest on bank borrowings, asset-backed financing, supplier financing arrangements, and advances from related parties[29](index=29&type=chunk) - The Group strategically increased its use of bank borrowings and other methods to **optimize short-term liquidity management**[29](index=29&type=chunk) [Profit for the Period](index=13&type=section&id=Profit%20for%20the%20Period) Profit attributable to owners of the Company for the period under review was approximately RMB 35.2 million, a decrease from RMB 42.4 million in the prior period - Profit attributable to owners of the Company for the period under review was approximately **RMB 35.2 million** (H1 2024: RMB 42.4 million)[30](index=30&type=chunk) [Trade and Bills Receivables](index=13&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, trade receivables (net of impairment allowance) increased by 19.1% to RMB 323.8 million, with approximately 28.3% aged over 180 days; bills receivables rose by 30.3% to RMB 138.1 million, all being bank acceptance bills with low default risk - Trade receivables (net of allowance for impairment losses) **increased by 19.1% to approximately RMB 323.8 million** (December 31, 2024: RMB 271.8 million)[31](index=31&type=chunk) - Approximately **28.3% of trade receivables were aged over 180 days**, but the Directors believe no additional bad debt provision is required[31](index=31&type=chunk) - Bills receivables **increased by 30.3% to approximately RMB 138.1 million** (December 31, 2024: RMB 106.0 million), all of which are bank acceptance bills with low default risk[32](index=32&type=chunk) [Short-term Bank Borrowings](index=14&type=section&id=Short-term%20Bank%20Borrowings) As of June 30, 2025, total bank borrowings increased to RMB 354.2 million, primarily utilized to fund the Group's general working capital - Total bank borrowings outstanding **increased to approximately RMB 354.2 million** (December 31, 2024: RMB 220.1 million)[33](index=33&type=chunk) - The bank borrowings were primarily raised to fund the Group's **general working capital** during the period under review[33](index=33&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=Liquidity%20and%20Financial%20Resources) Net cash inflow from operating activities for H1 2025 significantly decreased to RMB 50.3 million, and the Group's net cash balance declined to RMB 490.4 million, yet it maintains a sound financial position with cash and cash equivalents exceeding total outstanding borrowings - Net cash inflow from operating activities was approximately **RMB 50.3 million** (H1 2024: RMB 151.8 million), representing a **significant decrease**[34](index=34&type=chunk) - New bank borrowings amounted to approximately **RMB 118.6 million**, and advances from related parties were **RMB 12.0 million**[34](index=34&type=chunk) - Net cash balance was approximately **RMB 490.4 million** (December 31, 2024: RMB 626.9 million), showing a **decrease**[35](index=35&type=chunk) - The Group maintained a **sound financial position** during the period under review, with cash and cash equivalents exceeding total outstanding borrowings, and the debt-to-equity ratio is not applicable[35](index=35&type=chunk) [Pledge of Assets](index=15&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged RMB 1.3 million in bank deposits as security and certain buildings (RMB 50.4 million) and right-of-use assets (RMB 76.6 million) as collateral for bank borrowings - Bank deposits of approximately **RMB 0.3 million were pledged as security for factory water supply**, and **RMB 1.0 million was pledged as security for foreign exchange forward contracts**[38](index=38&type=chunk) - Certain buildings (approximately **RMB 50.4 million**) and right-of-use assets (approximately **RMB 76.6 million**) were pledged as collateral for bank borrowings[38](index=38&type=chunk) [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[39](index=39&type=chunk) [Foreign Exchange Fluctuation Risk](index=15&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The Group's primary operations are in China, with assets, liabilities, turnover, and transactions mainly denominated in RMB, USD, and HKD; the main foreign exchange risk stems from RMB fluctuations, which caused no significant issues during the period, and cost-effective hedging methods will be considered in the future - The Group's assets, liabilities, turnover, and transactions are primarily denominated in **RMB, USD, and HKD**[40](index=40&type=chunk) - The most significant foreign exchange fluctuation risk arises from **RMB exchange rate changes**, but no major difficulties or impacts were encountered during the period under review[40](index=40&type=chunk) - The Group will consider adopting **cost-effective hedging methods** for foreign currency transactions when appropriate in the future[40](index=40&type=chunk) [Dividends](index=15&type=section&id=Dividends) The Board does not recommend any interim dividend for the six months ended June 30, 2025 - The Board does not recommend any interim dividend for the six months ended June 30, 2025 (H1 2024: HKD 0.02 per share)[41](index=41&type=chunk) Other Information [Human Resources](index=15&type=section&id=Human%20Resources) As of June 30, 2025, the Group had 1,213 full-time employees, a decrease from 1,358 at year-end 2024, with established remuneration, bonus, and diverse training and development programs to enhance employee skills and industry knowledge - As of June 30, 2025, the Group had **1,213 full-time employees** (December 31, 2024: 1,358 full-time employees)[42](index=42&type=chunk) - The Group has established human resources policies and systems, including **remuneration, bonuses, diverse training, and personal development programs**[42](index=42&type=chunk) - The Group adopted a share option scheme to reward contributors, but **no share options were granted** during the period under review[43](index=43&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares - For the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares**[44](index=44&type=chunk) [Corporate Governance Practices](index=16&type=section&id=Corporate%20Governance%20Practices) To the best of the Directors' knowledge, the Company has complied with the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules for the six months ended June 30, 2025 - The Company has **complied with the Corporate Governance Code** set out in Appendix C1 Part 2 of the Listing Rules for the six months ended June 30, 2025[45](index=45&type=chunk) [Standard Code for Securities Transactions](index=16&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted a code of conduct no less exacting than the Standard Code in Appendix C3 of the Listing Rules, and all Directors and senior management have confirmed compliance - The Company has adopted a code of conduct **no less exacting than the Standard Code** set out in Appendix C3 of the Listing Rules, and each Director has confirmed compliance with the code[46](index=46&type=chunk) - Senior management is also required to comply with the provisions of the Standard Code and the Company's code of conduct regarding Directors' securities transactions[46](index=46&type=chunk) [Nomination Committee](index=16&type=section&id=Nomination%20Committee) The Nomination Committee is chaired by Executive Director Mr. Liu Yang and includes two independent non-executive Directors, with no meetings held during the period under review - The Nomination Committee is chaired by Executive Director Mr. Liu Yang, with members including Independent Non-executive Directors Mr. Leung Kam Wan and Mr. Liu Chenguang[47](index=47&type=chunk) - **No Nomination Committee meetings were held** during the period under review[47](index=47&type=chunk) [Remuneration Committee](index=17&type=section&id=Remuneration%20Committee) The Remuneration Committee is chaired by Independent Non-executive Director Mr. Liu Chenguang and has three other members, with no meetings held during the period under review - The Remuneration Committee is chaired by Independent Non-executive Director Mr. Liu Chenguang, with members including Independent Non-executive Directors Mr. Leung Kam Wan, Ms. Shan Honghong, and Executive Director Mr. Liu Yang[48](index=48&type=chunk) - **No Remuneration Committee meetings were held** during the period under review[48](index=48&type=chunk) [Audit Committee](index=17&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive Directors and chaired by Mr. Leung Kam Wan, has reviewed accounting principles, internal controls, independent auditor's work, and the unaudited condensed financial information without objection - The Audit Committee comprises **three independent non-executive Directors**, with Mr. Leung Kam Wan as Chairman[49](index=49&type=chunk) - The Committee has reviewed the Company's adopted accounting principles and practices, compliance with Listing Rules, internal controls, statutory requirements, and financial reporting[49](index=49&type=chunk) - The Audit Committee has reviewed the unaudited condensed financial information and has **no objections to the accounting treatments adopted by the Company** during the period under review[49](index=49&type=chunk) [Events After the Reporting Period](index=17&type=section&id=Events%20After%20the%20Reporting%20Period) As of the announcement date, the Group had no other significant events after June 30, 2025 - As of the announcement date, the Group had **no other significant events after June 30, 2025**[50](index=50&type=chunk)